Chairman’s Message
Up Energy has been actively engaged in the development of coal business since 2003 and became a Hong Kong listed company on 18 January 2011, turning a new page for the company’s development. The various coal mines, plants and ancillary facilities of Up Energy in Wuchang region of northern Xinjiang are under construction and expected to be completed and to commence production in succession in 2012. The Group will then be one of the largest integrated energy groups with circulative economy business model in the coking industry in northwestern China region in terms of planned production capacity.

The rapid economic growth of China generates a strong demand for coal. The PRC government has announced its “12th Five-Year Plan” and intended to invest more than RMB2 trillion in fixed assets in Xinjiang to accelerate the region’s economic development and to spend more than RMB310 billion in the next decade to expand Xinjiang’s railway network. The demand for steel, coking coal and coke is expected to increase significantly, which is favourable to the development of coal business of Up Energy.

Looking forward, Up Energy will stick to its philosophy of “increased value in circulation” and develop upstream and downstream coking coal-related projects of circulative business in an active and steady manner. Up Energy will also invest in development of chemical by-products produced during the making of coking coal to enhance its profitability.

To uphold the principle of low-cost expansion, Up Energy will actively engage in resource integration, mergers and acquisitions in coking coal and energy industries in Xinjiang, other provinces in northwestern China and overseas, with an aim to be a leading specialised and integrated energy group in the coking industry of northwestern China region. Up Energy will also seek overseas investment opportunities to ensure the overall business development of the Group is in line with the principle of maximising the interests of the Group and all shareholders.

Qin Jun