On the morning of January 28, 2014, accompanied by the clear sound of a gong struck by Li Jinzhu, Vice Governor of Shaanxi Province; and Hua Wei, CPC Party Secretary and Chairman of Shaanxi Coal and Chemical Industry Group Co., Ltd, Chairman of Shaanxi Coal Industry Limited Company, Shaanxi Coal Industry Limited Company was officially listed on the Shanghai Stock Exchange, to be traded on the A-stock market. It is the first IPO for a Shaanxi provincial company since the Chinese Security Commission suspended IPOs in 2012.

Based on the previous announcement, the Group’s initial public offering is one billion A-shares; after the IPO the total issued share capital will be 10 billion shares. The stock is abbreviated as “Shaanxi coal”, and the stock code is “601225”; the issue price is 4 yuan per share, corresponding to an earnings ratio of 6.23 times.

The issue combined methods of strategic online and offline placement. The strategic placement was 500 million shares with a locking-up period of 12 months; the 500 million public shares issued offline and online started trading on the stock exchange from January 28, 2014.

In the first trading day, the initial trading price of Shaanxi Coal was 4.8 yuan per share, 20% higher than the issue price. The highest price was 5.76 yuan.

As the only publicly listed portion of Shaanxi Coal and Chemical Industry Group Co., Ltd., Shaanxi Coal Industry Limited Company is mainly engaged in coal production, processing, sales and transportation, etc. Shaanxi province is the third of China's coal production provinces, and the Group is the only resource integration and capital operation entity in the province, processing rich coal resources, and having a complete system of coal production, sales and transportation. By the end of 2012, coal reserves reached 16.596 billion tons, and recoverable reserves are 9.73 billion tons, which ranked third among the publicly listed domestic coal enterprises.

The coal resources owned by the Group are located in Tongchuan City, Weinan City, Yanan City, Xianyang City and Yulin City of Shaanxi Province, including five mining areas of Shenfu, Yuheng, Huangling, Binchang and Weibei, for a total of 29 pairs of mines. The coal production for the Group in 2010, 2011, 2012 and the first six months of 2013 reached 84.36 million tons, 93.81 million tons, 106.6 million tons, and 57.26 million tons, with an annual compound growth rate from 2010 to 2012 of 12.41%.

In the next ten years, the coal industry faces both opportunities and challenges. A rapid increase in energy consumption demand is the driving force for the dynamic development of the coal industry; but because of the rapid growth of the coal industry, the investment growth will be slow, coal production enterprises will face a regional imbalance between supply and demand, and enterprises in various positions along the industrial chain will face great changes in terms of the pattern of interest.

Based on the analysis of the internal and external environment, the Group has decided to strengthen coal resource exploration and develop green mining. At the same time, the Group adheres to the direction of optimizing the coal circulation system and guaranteeing and enhancing fundamental industry value; expanding the circular economy and exploring the comprehensive utilization value of resources. In addition it will explore the combination of industry and finance while developing comprehensive credit value. Five core businesses have been determined, including coal resource exploration, mining, and processing and management services; coal trading and integrated services; integrated supply chain logistics; the circular economy and comprehensive resource utilization; and investment and financing. Based in western China and strategically located in the country, the Group will grasp the opportunities of the global energy industry to create a world-class energy company.

Shaanxi Coal and Chemical Industry Group Co., Ltd. celebrates the tenth anniversary of the Group’s establishment

Ten years of devoting, ten years of harvest and glory. February 21 is the tenth anniversary of the founding of Shaanxi Coal and Chemical Industry Group Co., Ltd. At such a happy time, a simple and dignified meeting was held to celebrate the tenth anniversary on the afternoon of February 20. The reform and development achievements during the past 10 years were reviewed, and the great changes and the future plans were also discussed. Sun Anhui, the CPC Party Secretary of the Provincial SASAC, and Hua Wei, Chairman of the Board of Directors, attended the meeting and made speeches. Yang Zhaoqian, General Manager of the Group, presided over the meeting.

Representatives of related government agencies and employees of the Group attended the meeting, including Wang Shuangming, President of the Geological Survey Institute; Wang Dong, Deputy Director of the Provincial Energy Bureau; Cao Wenfu, Director of the Provincial Coal Industry Association; Lin Guojie, Deputy President of the Provincial Bureau of Coal Supervision; the leaders and management team members of the Group and branch companies were also present as were representatives of model workers, female workers, and retired employees.

Sun Anhui, representing the provincial SASAC, extended congratulations for the remarkable achievements of Shaanxi Coal and Chemical Industry Group Co., Ltd. in the last ten years. He required the Group to conscientiously sum up development experience of the past ten years and to prepare for future growth. He said that in the ten years of operation the Group had implemented reform measures such as strategic bankruptcy policy, separated the main bodies from the supplementary business, supported the IPO of the coal business, restructured and integrated, and absorbed private capital. By continuously enhancing the overall strength, the quality and quantity of its economy has achieved a historic breakthrough, and it is necessary to realize that reform was the only route for the scientific development of the Group; highlighting the core business is the foundation of the Group; and scientific innovation is the powerful driving force enabling the Group to realize sustainable development.

Sun Anhui stressed that Shaanxi Coal and Chemical Industry Group Co., Ltd. should make scientific plans for the future, grasp all opportunities to face challenges, transform and upgrade when tackling difficulties, and stimulate the vitality in deepening the reforms. He mentioned four tasks that should be emphasized: the first is to further optimize the functions of group headquarters and to promote state-owned enterprise reform; the second is to continue to promote the diversification of equity reform, and promote the coverage and overall quality of the mixed ownership economy; the third is to improve the corporate governance structure, deepen the reform of the board of directors, the board of supervisors and managers, and deepen the reform of labor and the distribution system; the fourth is to strengthen the work of the CPC Party, further highlighting the advantages of the Party Organization.

Hua Wei thanked the leaders at all levels supporting the development of Shaanxi Coal and Chemical Industry Group Co., Ltd. in the past ten years; he thanked all the employees, retired cadres and model workers who devoted themselves to the reform and development of the Group. Hua Wei said, when recalling the process of the Group in the past ten years, a series of data have shown the rich fruits, including the total assets, sales revenue, coal production, chemical product output, worker’s income, total profits and taxes. During the ten years, although the Group experienced difficulties, it realized outstanding achievements, which depended on the three reorganizations led by the government, depended on the development strategy of “developing coal-mining as basic industry, highlighting coal chemical as leading scope, supported by diversified sectors”; and depended on the hard work of all the employees.

When Hua Wei talked about the features of the Group, he pointed out the features that can be found in the ten-year history. During the ten years the Group has experienced deep reform and development and the restructuring of the coal sector has brought about the successful IPO; active M&As and overseas cooperation has helped to achieve a comprehensive transformation and upgrade of the coal chemical industry; integrating similar sectors decentralized within the Group has cultivated new economic growth points; building an unified sharing platform has formed a production-oriented modern service system; new business has been developed around and beyond the coal industry. During the ten years, the Group has combined coal mining with the clean economy, combined the reform of the old enterprise and new project construction; and followed a circular development route and a transformation and upgrading route. The ten years witnessed the formation of an industrial cluster and professional management focusing on standard management and fine management, realizing a harmonious development in terms of business development, human resource management, welfare improvements and the sharing of results.

Hua Wei emphasized several key words, and he pointed out that the “experience” is precious for the future. When summarizing the experience of the past ten years, six important insights need to be kept in mind: the first is setting “strategy” to lead scientific development; the second is “reform” to bring about good performance; the third is “management” to form a competitive advantage; the fourth is “science and technology” to promote innovation and development; the fifth is “culture” to ensure long lasting success; and the sixth is “welfare” to bring harmonious development.

Hua Wei stressed that “vision” can bring confidence to everyone and promote the Group to move forward and summon confidence. As the important fruit of the CPC’s mass education practice, “Shaanxi Dream” has depicted a blueprint for the development of the Group: at the end of the 12th Five Year Plan, the Group will strive to realize 200 million tons of coal production, thereby becoming a global top 500 company and a first-class environment-friendly energy and chemical enterprise in China, whose employees work and live happily. By the end of 2017, the Group will try to realize 250 million tons of coal production; 25 million tons of coal chemical product output, 10 million tons of crude steel, and 60 billion degrees of power generation capacity; try to make sales revenue exceed 300 billion yuan, at best 350 billion, and become a world leading energy and chemical enterprise.

At the meeting, the participants watched the documentary “Footsteps Toward the Dream” which recounted the development of the Group during the past ten years. Representatives from branches talked about their achievements and personal feelings, including the retired employees, representatives of model workers, Shennan Mineral Company, Wei Hua Group, Heavy Steel Group, and Shaanxi Steel Group. All of them hope the Group will grow smoothly, continue to reform and innovate, and contribute to the “Shaanxi Dream” together.

After the meeting, Sun Anhui, the CPC Party Secretary of the Provincial SASAC, Hua Wei, Chairman of the board of directors, and the leaders and management team members of the Group and branch companies visited the photo exhibition on the tenth anniversary. (Wei Huazhen)