Welcome to join us in China Coal Energy Company, the 2022 half year conclusion event. Before the keynote speech, we will have the Q&A session. Now welcome the moderator. Honorable stakeholders, investors, good afternoon. I'm the secretary Jiang Qun of the President Board Secretary. Welcome to join us in 2022, the half year conclusion. Thanks for your support. Today we have the chief of the financial sector, Chai Qiaolin, and also the coal department, Cai Xiao Deng, the securities department, finance sales center, and chemical center. Allow me to introduce about the situation of the industry as well as for the half year performance and the plan for the next half year. Before the introduction, I would like to offer you a very elaboration that all standard require according to the Chinese Accounting Standards. 2022, the first half year results.
In the first half year, as the stabilization policy has put into implementation and coal has been retaining very stably, especially for the release of the capacity and guarantee of the coal supply can be realized. During January to July, that's 2.56 billion tons, 11.5% growth. We can say that yielding amount has been growing a lot. In the first half year that 5500 for big track, especially for the steam coal, actually the average price is CNY 721 for each ton, like CNY 4 for each ton less. That is lower than the limit, CNY 49 lower than the limit. In the market coal 2022, especially for the Qinhuangdao port 5500, the steam coal, the price 1,155 and 20.9% growth.
The price is CNY 1,683/ton. The lowest price is CNY 773/ton. The average is CNY 1,176 per ton. From January to July, import is around 179 million tons, 18.2% less. In July, the importing is around 23.52 million tons, 22.1% dropping, and also like a 10.9% less compared to the previous months. The first half year operation situation, I will introduce something on that. This current year that is following the China Central State Department and the center of the CPC as well as for international Chinese state asset and the security department.
We have been working in high quality development as our very guideline and to guarantee stability of the coal supply, to guarantee stability of the economy, as well as for the growth of the social economy to make our part of contribution. We first need to guarantee the supply of the power stably, guarantee the growth. We first release on the capacity of the coal, especially for the commercial coal that's around 59.523 million tons, like 2.47 million tons growth, 4.4% growth. For the coking coal sales, 130 million tons, 2.37 million tons less, 14.4%. For mainland China, 58.65 million tons, 4.7% growth.
For other sales, what we call the contract is 668.96 million tons. The 27.6% dropping. The pricing, CNY 752 for the commodity, 210% growth, 668.7% growth. The contract is 833 and 243 growth, the 41% growth. For the product, that's 237 for the chemical product and also for PE, 36.91. For PP, 38.31. For the urea is 100.241. For the methanol, 97.01. The sales is 90.71. That's production and the sales. For chemical, for the price of the urea, it's at 1,072, CNY 400.
That's 35.3% growth. Methanol is CNY 1919 per ton, like 224 per ton growth, like 13.2% growth. Third, about the equipment as well as for finance business growth. For the equipment of the coal, that's 51.5 E. That's a 7.7% growth. Revenue is 54.16 E, 9.2% growth. One E is 100 million Chinese units. Also finance, as we can see, revenue is 11.225 E. That's a 3.8%. 3.8 E more. And 51% of growth, that's the finance situation for revenue. For other business including importing for the aluminum as well as recruitment and for other parts, revenue is around 40.72 E.
Second, I would like to introduce about the market situation as well as for performance growth. 2021 first half year, the revenue is around 1,180 E. That's 15.5% growth. For the net profit behind to stakeholders, 133.77 E, 75.7% growth. For the profit of the stakeholders, that's 145.29 yuan, 59.5% growth. Apart from a finance company, as well as for the other reasons of the asset processes and the flows, and regard to the cash in, 249.7.2% growth for yielding for each stake. For the weighted asset income, that's 11% and 3.82% growth.
For the debt, 5.2% and 3.5% less compared to previous year. For the total debt, that's around 35.3% of ratio and 5.2% of dropping. For operating cash, for each stake, CNY 1.25. CNY 0.37 for each stake. Then for each A-share and for the profit, CNY 9.242 and CNY 0.8 for 9.2% growth. Third, I would like to introduce the progress of the programs as well as the project for the green technology allocation.
For the previous half year, especially for the 1500 mine, that is for the high quality of steam coal, mainly to guarantee, especially as we can see that pilot program has been adjusted from 5 million to 20 million tons. That's approved scope of permitted quota. Also for the Shaanxi Yulin, especially for the PP project, has been coming to the production. The PP project has come to production. That annual yielding, that's 0.9 million tons. For the annual 4 million, especially for the smokeless, for Libi, Antaibao, has two multiplies with 250 MW has also been progressing, especially with 30 megawatt for Shangwan. New energy has been coming to construction. We are working on the.
In all these areas for the co-production between the new energy and the coal energy. The third part, we are working on the production, on the plans for and prospect for 2022, the latter half year, especially given the tight supply of the global energy, as well as we are stabilizing the price, as well as to facilitate the progress. We believe that the price will maintain at a very rational level. Currently it's still at a high level, especially as the economy has been recovering and stable policies has coming to be landing. That means less fluctuations.
The plans for 2022, the latter half year, and we will be working on stability, especially during the stability to ensure the high quality development and green energy development, as well as for the storage of the power and transformation of these status, mainly centered on the 14th Five-Year Plan to facilitate the project construction and to finish the guarantee security work, especially to assure that can be aligned with national strategy. The second for the national state-owned enterprises with three-year plan. We are also in compliance with that to ensure legislation and to instill more vigor in our path, especially to facilitate, refine management, improve efficiency, and to finish our project, reduce the cost, increase of the efficiency. First, facilitation about innovation and scientific growth, especially for the coal energy transformation, transfer of technologies, and to facilitate development by technology driven way.
The fifth's mainly about security, environmental protection for the COVID prevention and to assure that sixth is mainly governance improvement and information sharing, transparency, communication between the stakeholders more fully. We will always remember our original task and to facilitate our development with all the effort from all different spectrum and to return to the stakeholders to make our contribution. That's my introduction. Thank you. Now come to the QA session. Welcome for the questions. We have multiple platforms for interactions. We have the phone as a priority for the questions rising.
All right, questions. Asterisk key first, is that number one? So in that way you can ask the question if you want. Asterisk key, and then number one key, so you can raise your question by the phone.
Currently there's no question. I would like to clarify the question first. 1.16E, that's 5.72 x more for the asset tons. It's because of capacity increase or because of other reasons for such an increasing. Dahaize. 1,500 for the steam coal, high quality. CNY 5 million-CNY 20 million for coordination for the environmental protection. That's different policies, allocation. For the phone, table number is 6322. Please ask the question, please.
Leaders. I'm coming from Citibank. I'm not sure if you can hear me. Yes, please. Congratulations for the first half year with such a very yielding profit. The two aspects I would like to ask. First, mainly about the inflation. For the end of the year, that would be mostly considered, but actually for the half year and for around 20 years, less asset value. For the whole year, what will be the asset devaluation? Second, I would like to say, especially. Would you introduce about the full year prospect on the decrease of the financial situation?
Tim, please, from finance sector. First, about asset devaluation.
The 2019 year for the asset value for the EP. Mainly we are investing in energy development, green energy development, especially for 2021. Very modernized the coal. Like, 1,212. And also for 50 tons added scale. That means our guarantee, more guarantee for the production. We have to guarantee supply for China Coal, especially for geographic situation, for the risk control, especially for the other mines.
We are also working on evaluation, examining all these mines. During the processes, especially for the asset devaluation, we have been ready for that. Especially for some mines, we have been working on the testing, and for lowering the price, especially the coal price is at a high level. For the chemical company also has some loss on the profit. We're also working on some, like, to ensure that asset has less value. That's what we call it. For the latter half of the year, we are. High-quality development is a very important guideline. For the asset, we are still to checking it very carefully based on the principles and requirement to ensure that, to use a certain form to share the information. Second, from the first quarter, second quarter.
The cost for the latter, especially for the first quarter, different amounts need to have a maintenance. Repairing. Also, maintenance can cause the less of the product yielding. That's to say, for the third quarter, first quarter has more cost. Actually, we still are working on scientific management, so the cost is doing the rational scope. That's my answer to your question about the cost.
Thanks a lot. Y'all, actually, I would like to ask another question. The sales on the coal price, about made in China coal or the imported coal. We can see made in China coal has been increasing, but actually imported coal has less price. Well, I wanna see the reason behind it or any driving force behind it. The sales manager, please. You talk about the long contracted coal.
I think that's still at a very stable stage. From the average price of the previous half year, 721, compared with beginning year price 400 less. For second quarter price, meeting at 719 is very stable price for that, for the long contract, long-term contract coal. For spot, for markets, we believe that a lot of fluctuation has been a lot of fluctuation. For the previous half year average price, 1,176 as a price. From 1,583 to 793 for spot price between that scope. This normal price is 890. E-890. Basically, also because the second quarter has a lockdown of the COVID. There are many reasons.
Thanks for the answer. No more question from me.
Another question from the internet collection. One investor coming from [Shangjun Center]. About the future performance and dividend promises, and do we have more dividend for the stakeholders or more share for dividends for the stakeholders or less?
The bottom number. Affected by many factors, we believe, including the price of the product, has a lot of impact for the prediction. There's a lot of uncertainty there. Actually, from the production, still maintain at a very rational rhythm to guarantee the stability. That's the first question. Second question, you talk about the dividend sharing proportion for stakeholders. From getting into listed, we maintain at a very stable proportion. One aspect we consider about the company's input requirement, and also to take into consideration of the listed company, there are regulation there. We will keep a very stable and rational scope. There's no prediction to rise a lot for proportion for stakeholders or shareholders.
Any more question from the phone line? Xu Cheng, investor. Yeah, please. He clicked the wrong key and have to raise it again. Press the star key and number one to raise the question. Xu Cheng, please.
Sorry for the offline. I'm Xu Cheng. Got two question. The first question mainly about dividends to share. I would like to ask that for the cash flow situation and also about the asset allocation, expenditure allocation, especially for the asset flow. That's around CNY 11.5 billion. But actually only for proportion, for the net proportion. I think that is the stable for the financial situation. I would ask for the near future for the expenditure of the asset, capital or even buying back. Should we consider like more dividend for the shareholders? Second, I would like to ask is that, for the market fluctuation, including maybe some potential risk for electricity coal, for the steam coal and for the next, second half year prediction on the pricing rising or lowering.
The first question you have talked about, especially for the cash, is very rich. Currently, we have no buying back arrangement. If there is, we will do it according to the procedures. About expenditure of the capital asset, we made the yearly annual plan. The first half year, the proportion is not so high, especially affected by the pandemic or the weather. We believe that latter half year, the expenditure of the asset will be according to the plan to put more input and to enhance efficiency. The second question you have mentioned about for the future market planning. Our markets department, please. About the latter half year plan.
Especially with China policy with stabilization, the demand is returning. I believe that the price will be stable for the latter half year. About the spot price. Especially given the wide limitations of NDRC has a very fluctuation range for the pricing. For another half year. I think that will be lowering, the favor will be lowering for the market of the high price. So there's less probability to rise price and a lot. Also a very less probability to have higher price compared to previous year.
Second question I would like to ask is that, NDRC this year, especially for the long-term contract, and it has very limitation of that for the spot price and for long-term contract. What's the proportion between the two different ways of, by procurement? And after the first half year, according to your understanding that for the next, half year, what would be the change, for the proportion of the long-term contract and for, between that and the spot price?
NDRC has published the about 303 policy papers and number four claim about the price of the coal has very elaboration on our part. Our company has following that very strictly, especially for the policies as well as for the price. Our Our long-term contract as the main proportion for the sales, and we hope for the latter half year. All according to China policies. We believe that long-term contract price. CNY 771, just like mentioned by the former, our president, secretary general. 22% growth. That is very important for the performance for our company to support that.
Would you repeat it more on the spot?
About the spot price. For the buying channels pipeline, there are some risk for the spot price. We are working on facilitating about the development of the coal for the port importing. Imported coal will turning better, we believe.
Next question. Thank you.
Hello. Mr. Wang and all our leaders. President Wang. I come from China CITIC Bank. My name is Shang Yu. I'd like to ask you two questions. Thank you so much for the patience for the answering the question. One is mainly about our industry this year, from beginning of the year to the end of year, including the NDRC or the Energy Bureau, and three entities for the energy guarantee. Actually first half year is very limited quota. Though we set up a goal, actually we put into the new added capacity that's very limited.
I want to know that from your analysis, does that mean the latter half year, new added capacity will be realized very fast in or NDRC Energy Bureau has been actively to earn more input of increasing of the capacity, like enlarging of the more supply or the more approving for building new project? Any idea how many capacity we put into the new building project? Does that mean that spot price rising can be curbed like CNY 100, like CNY 1200 or CNY 1100, maybe dropping, especially we know that the daily consumption at spot price.
There are some kind of fluctuation of spot price. If the policies from the NDRC or the other energy bureaus, ministers, ministries can be landed. Does that mean that the price, the spot price will be dropping? Second, I would like to ask is that for the cost for the made in China cost will still be like especially we understand that the third quarter and the first quarter, there'll be more rising of the cost, like CNY 50-CNY 60 cost of rising and even CNY 90-CNY 100 more of the cost. About the cost rising, could you elaborate a little more on that?
First question. About the 300 million. Not ramping so fast. For the current mines, that will be very beneficial. Actually for new buildings, not so fast, taking some time, especially from the national scope. We do not have a specific data to support that. It still takes some time to respond to the policy. Actually, we believe that to have a very specific speculation. There's no such kind of answer we can get from that current information. We still believe that spot price is still running at a very high price in the near future. Secondly, you talk about the cost. Very right. Yes. According to the normal rhythms or situations, the habit, basically, that means, we have the tradition that maintenance are conducted at the latter half year, cost will be rising.
Also there are some prearranged work, mainly for preparation work for the first half year. The second half year, that means more higher cost compared with the previous half year. Even less compared with the CNY 325 per ton cost. Currently, we are running the cost well.
Thank you. Following, Chu Xinje, investor to ask the question.
I have mailed to the company for five questions. Still have four more questions. Five questions. The first have been answered recently. 270 tons and 140 tons, yi tons for reservation. For yearly exploration. That means that can be running 120 years for exploration mining. If we do the math for the reservation and for each year's yielding. Another is for the debt, for the CNY 800 yi and actually in cash, and only CNY 300 for the cash left. That's a contradiction. The third question is that for CNY 800 cash, and actually the debt is CNY 850 yi.
For CNY 190 for other types of debt. Does that mean the deposit or something like blurred there? Profit is like CNY 200 yi. If we have CNY 400 yi for each year without consideration of the debt. A 2-year time, we can be without debt. I mean, that means winning the money. Also about dividends. After two years, if a company has become only the cash in, does that will be like the other, like 100% you're winning the money?
The first question about the running period for the current mines, the total reserves. The year term is not calculated, is not doing the math, like, in that way. Different mines reserves are different and varying. Also the capacity, the volume and operation situation is different, conditions different. Also about the situation in different mines are different. Also, we are working on backup resources exploration. We have no idea that when we're gonna explore a new asset. For the backup reserves is also what we are striving for. If you do the math 120 years, it's difficult to answer.
I cannot guarantee that. In general, our current reserves can support our company running to have a stable growth that is enough resource to maintain that. The second question is mainly about our finance sector. About the cash flow and also. Why is mainly for we have deposited the cash for more than three months, we make it into the fixed deposit. The second is mainly for the production. There are limitations for use of the cash. That is also one reason behind the limitation of our cash flow. There is a gap between the cash in and the cash deposit. The second is about the dividend. For the future about the company's performance, there are lots of reasons we postponed that. First, taking the first half year situation, like CNY 400 million for one year's performance, there is very uncertainty there.
For the near future, whether we can have such a CNY 400 million revenue or CNY 40 billion revenue, we still have no idea. According to the 14th Five-Year Plan and for future arrangements, and for improved investment, I believe that for dividend proportion, we will have no further arrangement. If there is arrangement, we will let you know at the very first time. Very, very clear question. Clear answer. We all know, especially for the coking coal can be running for 90 years. For other steam coal and for other coals, other type of coals may be running longer. Last question about the previous half year to predict the whole year's revenue or profit. That's just an assumption. CNY 720 as a price.
As in Australia, $400 for each ton of coal in Australia, and we just CNY 720 for each ton. So if we can continue our good days, I think that we can really share more profit.
Yes. Thank you.
Shandong Real Development Fund, Feng Lichun.
Good afternoon, leaders. I wanna say congratulations for the very good performance for the half year. I'd like to show my concern about Dahaize. Still shutting down, when it can put into production again? 20 million tons capacity. How many can be used for electricity? How many use for chem? And the sales price for electricity or for the chemical, and what would be the pricing for that? Second, for the chem coal. How many tons will be used for the chemical coals? Made in China proportion. How much proportion can be increased if we put that into running? About Dahaize mine for progress and our manufacturing department. Now for the chemical question, Yi from the chemical sector, please answer the question.
All investors like you have asked Dahaize situation. The previous half year. According to the contract capacity requirement. From 1,500 to 20 million. From 15 million to 20 million increasement. Next year, that'll be put into 20 million. Dahaize. 50% is used for chemical. Other 50% for sales. 1,000 tons. 10 million tons. 50% made in China. 10 million tons. For Ordos, 80% made in China. Usually used to be imported. Since Dahaize put into production. Dahaize provides the coal now. After accomplish, China Coal supply by ourselves, 80% can be supplied by ourselves. About the coal price, according to the price of the market, no matter for the chemical or for sales, other side, all according to the price in market. Thank you.
Very specific answers. Thank you.
Thanks for the investor. Chen Yen from Dongjin Company.
Good afternoon, leaders. Actually, Chen Yen from Dongjin Company. Congratulations for such a very revenue. I would like to ask a small question. First question. About the cash. Leaders mentioned about a 14th Five-Year Plan. Would you offer us a number for the future several years? What will be the maintenance for the current asset input? Of a 14th Five-Year Plan, what will be the input of the fixed asset? Second, maintain the fixed asset. Second is about dual carbon. For our coal industry is very challenging, we believe. Carbon peaking and carbon decarbonization. Do we have new investment into the dual carbon goal project?
The third is that the market response about the carbon have fluctuation down. For the average, for the very similar parameter compared with the other years of coal, and there is a response that is less thermal for each unit of coal. The first is about the expenditure of the fixed asset and for Development Department , please. You can remove the mask if you want. First, mainly including for the new construction or the under-construction mines.
Would you please speak to the phone so we can hear clearly? First, to guarantee the construction of the under-construction mines. Consider for the input of fixed asset and also for production arrangement for the future annual. Still at around CNY 10 billion level for the fixed asset input. But for each year, we got a new plan. For next year beginning, we will arrange for a new plan for the fixed asset investment. Thank you. Second, about our energy plan, new energy plan. Chen, our company are devoting ourselves to also in the semi-annual plan. We are building very actively on the, like, wind power and the solar power. Also the west and north area, we are aiming for the new resources for arrangement of renewable energy. We will keep it transparent.
For the wind and the solar, would you introduce more on that? What's the scope and what's the scale for the solar and wind input?
There's no specific plan for how much we will invest into the wind and solar currently. About the quality of the coal, like each unit can provide in how much similar our production of the mines, Shanxi Tunlan. In Inner Mongolia, Ordos, at the end of June, 4,500 kcal/kg. Fushun, 4,900. Xiangning, 5,200 kcal/kg. [Da Er Mai, Zhao Mai. Since there's a number for each different mine, all mine resources.
Thank you. No more questions from me. Thank you.
About the new energy, we will offer you further information if we got more data on that. Thank you.
Let's see if we have more questions from the phone line. If you need to ask a question, you can press star button and then number one button. If you need to ask a question, you can click the button asterisk, then click the button of number one. To ask a question, if you want. Currently, there's no question from the phone line. Thank you. Now the answer from internet. A very interesting question. Currently that the social economy has a lot of challenge. Also, some people said that we need to survive as a full priority. Do we misestimate the risk? Should we take the reducing the debt as our priority? Is there any priority to reduce the debt? Given such a challenge of the economic crisis worldwide.
Any potential for the future risk prevention in one aspect, with all the banks we have set up very connection with the banks.
The banks providing us very better proportion for the future financing. We have a very good potential for future financing for the other benchmark. We are high quality proportion for the asset portfolio. That is very guaranteed. Third, we are enhancing the management on that. That means we have very good capability to manage our asset. For the future, we have the readiness on that. Do we have the plan to reduce the debt? Currently, we have no plan for reducing the debt. Because on the debt, that's all according to the standard. We do not reduce the debt.
Earlier. Yeah, that's. Another question from internet. For next half year planning, and for the coking coal price with international price in alignment with, effect on the China market, the sales manager, please.
The two questions I would repeat. First is that for the latter half year for imported coal market, what's the planning on that? I'd like to answer the imported coal first. For imported coal price, there's a very reduction compared with previous year. For international market, the demand is huge. The supply mainly affected by the Russia-Ukraine war. The rising of the coal price in Russia and Ukraine has been rising a lot. The international market has also been affected a lot. For importing of the coal will not be increased in the near future.
The second question I would like to repeat. For the steam coal price and the coking coal price, will that be affecting the Chinese market? I think I have answered all the parts of the question. Please wait for a while.
Huatai Securities, Wang Shen, investor to ask a question.
Congratulations for such a very performance for the first half year. For the project, I would like to ask the first is that we can see Yilan Mine. There's no reporting about the progress. Is that because of delay of the progress of the construction? Dahaize Mine, last year, we can see that this year is experimental running. End of the year, that's finish the completion of the construction. That is 5 million tons of increasing. Actually, there's no reveal of the approving of putting to production. Well, next year, as all the procedures can be finished next year, in line with the 20 million tons, it can be production can be realized. Also about the project, the two project, I would like to know more on the two project.
About Yilan Mine, Yilan, because geographic situation or because of other reasons. The gas, and for the other disaster, and very difficult challenges in there. That is slower compared with the anticipation. Actually we are working step by step. That's about Yilan mine. About Dahaize, our construction department. Like you have asked about Dahaize, this year. According to the China Coal annual meeting, we are working on the approving for the production for the procedures. Currently, we are working on the procedures of contract of the 20 million. All is running well. We are working on it. Second, about the chemical, chemistry, especially we understand that the chemical profit or price actually is dropping.
Actually, for the previous half year, we can say that about urea is very good, but actually for the methanol and for the polyolefin, actually there's a pressure there. Especially for the product and for the profit as compared to second quarter. Would you introduce a little bit on the PP or the polyolefin price or the market situation? For the chemical, Lee from the chemical department, please. To answer the question for the chemical for the previous half year is stable. Market fluctuation is huge. The main reasons behind it, there are two. First is for the coal price. The coal price in July, August is still running high, the price. That's good for the coal company. Actually, for the chemical industry, that means high cost. Actually, for methanol and for the olefin price, no rising on that.
That's why less profit for the chemical company. Urea and ammonium nitrate actually is working better. For the latter half year, stable, 'cause the big bulk products, especially for chemical products, has been dropping internationally. Currently our olefin and methanol is still at a very low margin and will not dropping further. Actually, if you anticipate a higher rising, that will be also less possible, but stable, I anticipate for the latter half year. That's my answer.
Thank you. Thank you. No question from me now. Thanks.
[Weibo Corporation]. I would like to ask a question about Dahaize mine. As shareholders, actually, we care a lot on the mine construction progress. I want to ask is that Dahaize mine. The quality, how much is the cost of the progress of the exploration?
The first question. Mr. Chen from the Market Department.
We're about the summer, I'd like to repeat that Dahaize 1,500 for the core, for mainly for the steam coal use, for power use. Steam coal use. You talk about the cost. About exploration cost. From the first half year, put into running in July to around. Put into running, the depreciation cost is low. And also the equipment, the new maintenance is very low cost. Actually, because just putting into production, the production is still not coming to the peak. So the cost compared with other mines is still high. CNY 200 for each ton, normally for operation.
You talk about the price. The price, according to the market price, I'd like to ask specifically for exporting to other countries and how do we understand that? Does that mean according to without being affected by the contract price or we just sell it by the international market price?
Mainly through our railroad to transport to other countries according to the NDRC requirement. To maintain that at a rational level. Still, not only about market price. Mainly to guarantee the secure supply of China's power. Exports to other countries also based on the long-term contract for exporting.
For sales. Asterisk then one, and to ask question by the phone if you want. Asterisk one to ask a question. Another question from internet. How many proportion used for electricity? How much proportions for the chemistry? 50/50, we have answered that already. Asterisk and one for phone a question. Asterisk then one to ask question by the phone. Will you please summarize about cut the cost and increase, efficiency of the company? Question from internet.
One is about the production to have optimization management to reduce the cost of production. Second, for financing. We are especially there are very support policies, preferences, with very good channels, pipelines, is our financing cost can be reduced by the priority of the policies. Advanced by the our production procedures will cut the cost, to optimize during operation to maintain a very low cost level. Second, for financing and to have a lower cost. To reduce, to assure the cost at a very stable level. Currently, China is facilitating electricity supply. Do you have plan to construct new mines to support electricity production?
I will answer the question. The company as the very pillar, we will devote ourselves further to assure that the national security of the power supply. For the future, we will continue to build the new mines. That will be our very direction development. The coal will be our pillar, and we will guarantee a security supply of energy. We will give full play to our strengths. To use more different kind of coal to improve the transferring efficiency, in that way to improve efficiency to use a low-sulfur coal to produce more steam. Another question from internet. For the chemical coal, for the first half-year market situation, and then for the latter half-year prediction for the chemical coal. We have answered the question. I'm glad if you want that we can repeat.
For the first previous half year, the chemical market, as for urea and for the ammonium nitrate, nitrogen, ammonia nitrogen and for other product is fair. Entering into July, there are some dropping for the chemical, mainly because international market on the big bulk product in July, August is down. It's like, it's like a seasonal. We predicted that for the latter half year, the price will be fluctuating, but there will be no very rocketing, very big rise. There's no big rise. We believe that current coal price in the latter half year will maintain a level of the cost of the coal price, then there'll be less profit compared with the first half year for the chemical. That's my answer. Thank you.
China Coal, Chen Xuyang. Good afternoon, leaders. I would like to ask about the cost of the exploration of the mine, the coal. The geographic situation, have we solved the challenges of the geographic challenge affecting the cost design department? Currently that for the open mine, there's not much change. It's at a normal scope. Another question I would like to ask. Wangjialing project. Is that a new project or the new added project or the current project?
Wangjialing is a new added project. It can only be maintained for three or five years. Currently, that will be like extended to the east. That's just a subsidiary project. It's not the official funded project. To guarantee that the project can be highly efficient if explosive, to guarantee that it's very effective exploration. We build up a square, we build up a village, a town there to ensure that can be maintaining the requirements to guarantee the stability, to guarantee the efficiency. What we call is just like some subsidiary project or the extensive project.
That's my question.
Another question from the internet. In July, the chemistry department has a dropping. What's the reason behind it? Is that because of maintenance? If it's because of maintenance, when we can return? Yes, you have asked for yourself. It's because maintenance. In Yulin, no, we are in maintenance. Currently, Yulin in August 5th, we have been returning to production. Anhui, in August 15th, has returning to back running. That means maintenance has ended. Another question from the internet, asking about the chemistry and for the coal. What's the advantage of integration between the coal production and the coal chemistry?
The integration between the coal and the coal chemistry advantage, that is very important, and we have been proving again and again. I think that the coal is a very pillar. Just like we have mentioned, the coal self-supply 80%, just like I have mentioned, not only about the price, but also about the quality. If we procure that from the other part of the market, we cannot guarantee that the stability and the quality. Second, in China, coal and coal chemistry integration is very important connection. We use a lot of derivative product from the coal production. We are very frontier in this aspect, not only for protection of environment, but also in the west and north area, solve the problem with the water recycling.
Solve the problem of the water shortage in the west and north area. We reuse the water, recyclable water, to produce derivatives. About the chemicals. The price for the internal buying from our self-made coal and sale, comparative sales, what's the price gap? Currently our coal chemical according to the market price, because that's two parts. Two different legal persons. That is all based on the market price. Any questions from the phone end?
Asterisk and number one for questions. Asterisk and number one for questions by the phone. If there's no question from phone end, that's the end of this event. We will answering the question from Internet, mainly. All the investors, all the analysts, do you have any questions? If no questions, the phone QA come to an end. Thanks a lot for your long-time support and inquiry. I hope you can support us and help us to further. If you've any questions, you can call our securities department, one, and we are very willing to answer any question you ask. Thank you. Now we can end the phone part and the Internet is still running. Thank you so much for joining us by the-