Recently, Shaanxi Coal Industry Co., Ltd. (hereinafter referred to as Shaanxi Coal Industry), as the only listed platform for coal assets of Shaanxi Coal Chemical Group, applied for the initial public offering of A-shares, which was approved at the 193rd meeting of the China Securities Regulatory Commission (CSRC) in 2011. This marks the upcoming debut of Shaanxi Coal Industry, one of China's 2011 A-share issuance plates, in the capital market and will become the third largest listed company of Chinese coal enterprises. Industry insiders exclaim that a billion ton coal aircraft carrier is rising strongly in this hot land of western China.

Shaanxi Coal Industry is a subsidiary of Shaanxi Coal Chemical Group, established in 2008. It is the only provincial-level super large coal enterprise in Shaanxi that integrates production, transportation, and sales. The company has a complete coal production, sales, and transportation system, with extensive involvement in coal mining, operation, sales, processing, and comprehensive utilization. In 2010, Shaanxi Coal Industry achieved a raw coal production of 84.36 million tons, with a compound annual growth rate of 52.91%; The operating revenue is 31.74 billion yuan, with a compound annual growth rate of 50.36%; The net profit attributable to the parent company was 5.47 billion yuan, with a compound annual growth rate of 71.77%. Since its establishment through restructuring, various indicators of Shaanxi coal industry have achieved rapid growth for three consecutive years, far exceeding the industry average level.

Relying on strength to fight against the waves, relying on momentum to go far, various signs show that Shaanxi's coal industry has unique advantages in development, and its growth performance is sustainable and promising.

Abundant reserves continue to give awesome to scientific development. The main mining areas of Shaanxi Coal Industry are located in the coal resource rich province of Shaanxi, with a proven geological reserve of 167.8 billion tons, ranking third in the country. As one of the two development entities designated by the state as a large-scale coal base in northern Shaanxi, the main coal producing areas in Shaanxi coal industry have excellent coal resources, good occurrence conditions, simple geological structures, and low coal seam gas content, making them suitable places for modern large-scale mines. As of June 30, 2011, Shaanxi Coal Industry has geological reserves of 17.407 billion tons and recoverable reserves of 10.51 billion tons, ranking among the top listed coal enterprises in China.

Convenient transportation and increasingly prominent transportation advantages. Shaanxi, as the bridgehead of China's western development, connects the east and west, and connects the north and south. It is the province closest to the main coal consumption area in western China. Within the province, there are energy arteries such as the Longhai Line and the Taichung Silver Line running through the east and west, as well as the main trunk line Baoxi Double Line running through the north and south. Important branch lines such as Houxi, Xikang, Xihe, and Xiangyu intersect here, forming a strong transportation network. In the coming years, the railway network of "two vertical, five horizontal, eight radiating, and one intercity" in Shaanxi will be basically formed. The Shenwei coal transportation pipeline project, which is being funded by Shaanxi Coal Industry, starts from Shenmu in the north and ends at Weinan in the south, with a total length of 748 kilometers and a designed annual coal transportation capacity of 10 million tons. After completion, it will become the world's longest coal transportation pipeline. The location and transportation advantages of Shaanxi coal industry are more prominent.

Mature management, spanning growth and accumulating knowledge. Inheriting the rich management experience and profound industry accumulation of its holding company, Shaanxi Coal Chemical Group, Shaanxi Coal Industry has core competitiveness in mine safety production and brand operation management, formed a reasonably laid out market network, and actively explored and practiced in coal electronic trading and building the entire value chain of the coal industry, achieving breakthrough progress.

According to Hua Wei, Chairman of Shaanxi Coal Chemical Group and Chairman of Shaanxi Coal Industry, "In 2010, Shaanxi Coal Chemical Group achieved sales revenue of 51.6 billion yuan and net profit of 8.682 billion yuan, ranking 158th in the latest ranking of China's top 500 enterprises and 35th among the top 200 Chinese enterprises in terms of efficiency. The growth rate and efficiency ranking are both ranked first among Shaanxi's shortlisted enterprises, and this achievement is largely due to the strong driving force of the coal sector, namely Shaanxi Coal Industry. Referring to the average P/E ratio of 20 times in the coal industry, Shaanxi Coal Industry is expected to achieve a total market value of nearly 160 billion yuan after Shaanxi Coal Industry goes public, according to industry experts." In the future, the raised funds will drive direct investment to over 100 billion yuan, increase industrial added value by over 600 billion yuan, and increase profits and taxes by over 30 billion yuan, Directly promote the extension of the coal industry chain in Shaanxi Province, promote the development of the coal mining industry towards high-tech modernization and scale, and thus establish Shaanxi's position as the first province in the country's coal chemical industry. At that time, Shaanxi Coal Industry will also become the largest listed enterprise in Northwest China, marking a significant step towards asset equity transformation in Shaanxi.

Recalling the past, braving the wind and rain, burying one's head in steps; Looking at this day, spring blossoms and autumn fruits, and a grand plan to rise again. In the autumn of 2011, the beautiful Shaanxi will be destined for a rebirth, gathering the attention of people from all over the world. Shaanxi Coal Industry, a billion ton coal aircraft carrier carrying the important task of "promoting the prosperity of the Western economy and the people of Sanqin", will anchor and set sail here, heading towards a broader world.