Antai Group (600408.SH): Continuing coke contract processing business

Zhitong Finance App News, Antai Group (600408.SH) issued an announcement. In order to respond positively to the risk of fluctuations in the coke market, the company strives to improve operations and reduce losses on coke products through flexible business model changes. After market research and discussions with willing customers, the company has already carried out coke contract processing business with Xiangfen County Changshengping Coal Industry Co., Ltd. in the early stages. Since the launch of this business, the two parties have cooperated smoothly. According to the company's financial department, losses on self-operated coke products under the same conditions have been drastically reduced under this business model, which is of positive significance in improving the company's business performance. Based on predicting the trend of the coke market in the coming period, the company decided to seek partners with the same will to carry out similar business in order to avoid the risk of fluctuations in the coal and coke market to the greatest extent.

After preliminary discussions, the company reached a desire to cooperate with Jiexiu Jie'an Coal Chemical Co., Ltd. (“Jie'an Coal Chemical Company”), and the company's wholly-owned subsidiary, Shanxi Hongan Coking Technology Co., Ltd. (“Hongan Coking”), accepted the commission from Jie'an Coal Chemical Company to process and produce coke for it with all its own equipment. Ownership of the coke commissioned for processing and production and the waste gas generated at the same time belongs to Jie'an Coal Chemical Company, and Hongan Coking charges the corresponding contract processing fees. Since waste gas still needs to be reprocessed and Jie'an Coal Chemical Company has no processing capacity, it agreed to resell waste gas locally to Hong'an Coking.

According to reports, this cooperation will help the company avoid the risk of price fluctuations of coal and coke products, collect more stable processing costs and chemical production revenue, and reduce operating risks. During this and previous contract processing business cooperation, the production and sales volume and revenue of the company's coke products will be drastically reduced, and even no longer self-produced coke, but at the same time, the operating losses of coke products in the current market can be reduced accordingly, which is of positive significance in improving the company's business performance.