Sincap Group received the coal trading licence from the PRC government in January 2011, and began trading in coal in May 2011. We trade primarily in thermal coal, which is used in boilers to generate steam to produce electricity, among other uses.
To ensure a stable supply, our Group sources for coal mainly from upstream suppliers in Shanxi Province with whom we have built close business relationships despite our relatively new entry into coal trading.
Our Group deploys quality assurance personnel to perform batch testing on coal from our local suppliers to ascertain the grade of coal as required by our customers. Plans are in the pipeline to introduce stringent quality assurance systems, to comply with PRC coal accreditation standards.
Having established a wide customer base that includes chemical factories and power plants in the Shandong Province, we hope to extend our reach into other parts of the PRC, as well as overseas markets, and have successfully received an import and export trading licence in February 2012 that allows us to engage in international trading of commodities including, but not limited to, coal.