Inner Mongolia Yitai Coal

According to the ranking of 2017 China Fortune 500, the Company ranked sixth among listed companies in the coal industry. The Company is a core member of Inner Mongolia Yitai Group Co. Ltd. which ranked the first among Inner Mongolia Autonomous Region's top 50 coal enterprises, listed by the State Council as one of 14 large coal base backbone enterprises on the list of the planning and construction of China. The Company has abundant coal resource reserve with high quality. Its coal mining is modernized at a very high level. As of the end of Jun 2018, it has 2.675 billion tons of domestic remaining available reserves and 1.514 billion tons of recoverable reserves. There is a total of 9 mechanized coal mines which are owned by the Company or controlled by the Company by shareholding. Such mines have an annual production capacity of 45 million tons and use imported or domestically produced fully mechanized mining equipment. The coal recovery rate of the coal mining areas reaches more than 80% on an average. The mechanization of mining reaches 100%. The Company has a domestic leading level of coal production efficiency and production safety. The coal produced and operated by the Company is featured with low ash, extra-low phosphorus, extra-low sculpture, medium and high heating power and other characteristics. It is a natural "environmentally friendly" and high quality steam coal, mainly used as the fuel coal for enterprises of downstream thermal power, building materials, chemicals and many other industries. The company has the perfect highway and railway transport networks as well as the matched coal forwarding infrastructure. In order to break through the coal transportation bottleneck, it has established a complete transport system combining the railway and highway with the matched facilities and actively promoted the construction of matched railways in the manners of self-building and participation, which has increased the coal marketing capacity. At present, the Company controls three main railways in operation, namely the Zhundong Railway (191.41km, including 56.52km for double line), Huzhun Railway (237.98km, including 113.79km for double line) and a special railway line for Suancigou Mine (26.127km). At the same time, the Company also holds equity interest in Xin Baoshen Railway, Zhunshuo Railway, Mengxi-Huazhong Railway, the South Ordos Railway and Mengji Railway respectively. In addition, the Company has built the mine roads of 150km covering its surrounding mines, with Caoyang Road as its main line in the quality-coal-rich Nalinmiao Area. The Company has kept increasing technical and equipment input in railway management for years, thus realizing interconnection with national railways. Currently, the design delivery capacity of the self-operated railways and the coal transport capacity reached 220 Mtpa and over 100 Mtpa, respectively. A complete transport network covering all main mines of the Company has been established, thus creating a good condition for transporting the coal both owned by the Company and from the peripheral area. The company has been devoted to develop the clean coal technology, increase the added value of products and extend the coal industry chain. Relying on the world-leading technology of indirect coal liquefaction for oil preparation, it has deployed and constructed large-scale coal chemical projects in Inner Mongolia and Xinjiang region. The company's three projects in "Xinjiang Yili""Xinjiang Ganquanpu" and "Inner Mongolia Yitai" have all been elected as coal deep processing construction key coal-to-liquids projects in the national 13th Five-Year Plan. The company shall firmly promote the approval and construction of all coal chemical projects, speed up the space of industry transformation and upgrading and work on becoming the leading enterprise in the future coal deep processing industry. The company adheres to the operation principle of "Product No Defect with 100% Satisfaction" with integrity management, strictly conducts quality management and contract performance and tries hard to improve the after-sales service. The company's "Yitai" coal products has obtained "Quality Management Award in the Inner Mongolia Autonomous Region" and been granted the "national inspection-free product" title by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China. "Yitai" brand has been affirmed as "China famous brand". The company has established long-term friendly and mutual win-win steady strategic cooperation relations with numerous electric power and metallurgy enterprises in Eastern China, Southern China, North China, Central China and northeast with the industry-leading key contract performing rate all the way, which has obtained much public praises among clients. Looking ahead, the company shall take the opportunity of the nation accelerating the coal resource conformity and closing down outdated production facilities to integrate the internal and external resources, enrich its strategic resources deposition and improve the core competitiveness and market position; extend and upgrade its comprehensive transportation network and relevant infrastructure to ensure the rapid docking and efficient operation of the coal products and the market; speed up the construction and operation of the fine chemicals projects with 1.20 millionton/year of Yitai chemicaland the approval and construction progress of coal-to-liquids company's Phase II the indirect coal liquefaction demonstration project with 2 million ton/year, Yili and Ganquanpu projects in Xinjiang based on the improvement and operation of the existing coal-to-liquids demonstration project with 1.6 million ton/year. By means of such measures, the company shall try to enlarge the coal yield to million tons and the coal-to-liquids yield to 10 million tons by 2020, becoming the comprehensive international power enterprise with the integration of coal and coal chemicals. About Yitai