Group 1 - The Invesco Great Wall CSI National New Hong Kong Stock Connect Central Enterprise Dividend ETF (520990) closed up 1.05% on July 10, with a trading volume of 163 million yuan [1] - The fund was established on June 26, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1] - As of July 9, 2024, the fund's latest share count was 4.955 billion, with a total size of 4.699 billion yuan, reflecting a year-to-date share increase of 32.27% and a size increase of 34.20% [1] Group 2 - The current fund managers are Zhang Xiaonan and Gong Lili, with Zhang managing since June 26, 2024, yielding a return of -1.91%, while Gong has managed since July 25, 2024, with a return of 10.03% [2] - The fund's top holdings include China Mobile, China Petroleum, COSCO Shipping, CNOOC, China Shenhua, Sinopec, China Telecom, China Unicom, China Coal Energy, and China Merchants Bank, with respective holding percentages [2] Group 3 - The top holdings and their respective percentages are as follows: - China Mobile: 11.04% - China Petroleum: 10.43% - COSCO Shipping: 10.25% - CNOOC: 10.01% - China Shenhua: 8.89% - Sinopec: 8.21% - China Telecom: 5.39% - China Unicom: 3.65% - China Coal Energy: 2.38% - China Merchants Bank: 2.33% [3]

Group 1 - The core index, the China Securities Hong Kong 300 Upstream Index (H300 Upstream), reported a value of 2572.51 points, with a 2.22% increase over the past month, a 25.04% increase over the past three months, and a 9.20% increase year-to-date [1] - The index reflects the overall performance of theme securities listed on the Hong Kong Stock Exchange, selected based on the China Securities industry classification [1] - The top ten holdings of the H300 Upstream Index include China National Offshore Oil Corporation (28.81%), PetroChina Company Limited (12.85%), Zijin Mining Group (10.9%), China Shenhua Energy Company (9.29%), Sinopec Limited (8.93%), China Hongqiao Group (4.48%), China Coal Energy Company (3.4%), Zhaojin Mining Industry Company (3.06%), Luoyang Molybdenum Company (2.89%), and Yanzhou Coal Mining Company (2.35%) [1] Group 2 - The industry composition of the H300 Upstream Index shows that oil and gas account for 50.95%, precious metals for 16.02%, coal for 15.56%, industrial metals for 14.84%, oil and gas extraction and field services for 1.07%, rare metals for 0.89%, and other non-ferrous metals and alloys for 0.67% [2] - The index samples are adjusted semi-annually, with adjustments implemented on the next trading day following the second Friday of June and December each year, with provisions for temporary adjustments in special circumstances [2]

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10]. Core Insights - The current profitability of the coal industry is better than that before the supply-side reform in 2016, but coking coal profitability is lower than thermal coal, indicating a stronger necessity for reform [7][8]. - The "anti-involution" measures in the coal industry are expected to primarily involve production limits and capacity exits, which could raise the price baseline in a favorable demand environment. However, the current demand pressure is greater than in 2016 [6][7]. - Short-term price elasticity may be limited due to high inventory and suppressed demand, but unexpected demand improvements could lead to price rebounds [6][7]. Summary by Sections Market Performance - The coal index (Yangtze) increased by 1.67%, outperforming the CSI 300 index by 0.13 percentage points, ranking 11th out of 32 industries [21]. - As of July 4, the market price for Qinhuangdao thermal coal was 623 RMB/ton, a weekly increase of 3 RMB/ton [21]. Thermal Coal Analysis - Daily coal consumption in 25 provinces reached 573.3 million tons, a week-on-week increase of 3.3% [22]. - The inventory of power plants was 125.22 million tons, with a usable days count of 21.8 days, a decrease of 0.4 days week-on-week [22]. Coking Coal Analysis - The price for main coking coal at Jingtang Port was stable at 1230 RMB/ton as of July 4 [21]. - Coking coal inventory increased by 0.55% week-on-week, indicating a need to monitor supply recovery and seasonal demand [22][53]. Investment Recommendations - Recommended stocks include long-term stable profit leaders such as China Coal Energy, China Shenhua Energy, and Shaanxi Coal and Chemical Industry [8]. - Growth-oriented companies include Electric Power Investment and New Hope Liuhe, while flexible growth stocks include Yanzhou Coal Mining and Huayang Co [8].

Investment Rating - The investment rating for the coal mining industry is "Positive" [2] Core Viewpoints - The current phase is seen as the beginning of a new upward cycle in the coal economy, with a resonance between fundamentals and policies, making it an opportune time to accumulate coal sector investments [10][11] - The underlying investment logic of coal capacity shortages remains unchanged, with a short-term supply-demand balance and a long-term gap still present [10] - The trend of coal prices establishing a bottom and moving to a new platform is expected to continue, with high profitability, cash flow, return on equity (ROE), and dividends from quality coal companies [10][11] - The coal sector is viewed as undervalued, with overall valuation expected to improve, supported by high premiums in the primary mining rights market and a public fund allocation that is currently underweight in coal [10][11] Summary by Sections Coal Price Tracking - As of July 5, the market price for Qinhuangdao port thermal coal (Q5500) is 616 CNY/ton, a week-on-week increase of 2 CNY/ton [28] - The price for thermal coal from Shaanxi Yulin (Q6000) is 600 CNY/ton, up 5.0 CNY/ton week-on-week [28] - The international thermal coal price at Newcastle (NEWC5500) is 64.8 USD/ton, down 0.3 USD/ton week-on-week [28] Supply and Demand Tracking - The capacity utilization rate for sample thermal coal mines is 94%, an increase of 1.1 percentage points week-on-week [46] - The capacity utilization rate for sample coking coal mines is 83.82%, an increase of 1.3 percentage points week-on-week [46] - Coastal provinces' daily coal consumption increased by 18.80 thousand tons/day (+9.90%) while inland provinces' daily consumption decreased by 0.60 thousand tons/day (-0.16%) [47] Investment Recommendations - Focus on stable and robust performance companies such as China Shenhua, Shaanxi Coal, and China Coal Energy [11] - Consider companies with significant rebound potential like Yanzhou Coal, Electric Power Energy, and Guanghui Energy [11] - Pay attention to high-quality metallurgical coal companies such as Huabei Mining and Pingmei Shenma [11]

Investment Rating - The report maintains a "Buy" rating for key coal companies including China Qinfa, China Coal Energy, and AnYuan Coal Industry [3][6]. Core Insights - The global coal production is expected to reach a historical high of 924.2 million tons in 2024, with a year-on-year growth of 0.9%. The Asia-Pacific region continues to expand production, with India and Indonesia increasing output by 7% and 8% respectively [7]. - Global coal demand is projected to grow to 165.06 exajoules (EJ) in 2024, reflecting a year-on-year increase of 1%. However, demand in Europe is declining rapidly, with a decrease of 7% [7]. - The report highlights the stability of coal prices, with Newcastle port coal prices at $110.85 per ton, up 4.35 dollars per ton (+4.08%) from the previous week [34]. Summary by Sections Coal Mining - The report indicates that coal prices at European ARA ports have risen to $107.25 per ton, an increase of 3.90 dollars per ton (+3.77%) [34]. - The report emphasizes the importance of monitoring coal production and demand trends, particularly in the Asia-Pacific region, which is driving growth [7]. Investment Recommendations - Key recommended stocks include China Coal Energy, China Shenhua, and the turnaround story of China Qinfa. Other notable mentions are Shaanxi Coal and Energy, and Yancoal Energy, which show potential for growth [3][6]. - The report also suggests keeping an eye on AnYuan Coal Industry, which is undergoing significant changes in its shareholder structure and asset swaps [3]. Market Trends - The report notes that global coal trade volume is expected to reach 35.99 EJ in 2024, marking a year-on-year increase of 1.3%. Indonesia remains the largest coal exporter, accounting for 29.8% of total exports [7]. - The report provides a detailed analysis of coal price movements, indicating a stable trend in shipping coal prices [30].

Summary of China Coal Energy Conference Call Company Overview - **Company**: China Coal Energy - **Industry**: Coal and Energy Key Points Performance and Operations - Long-term contract fulfillment rates remain high, exceeding 90% in both Q1 and Q2, significantly better than some competitors whose rates dropped to around 50% due to market conditions [2][5][6] - Cost control measures are strict, with expectations to maintain low costs compared to industry standards, even during overall rising trends in the sector [2][9] - Production and operational status is stable, with favorable trends in the coal market, including a decrease in inventory due to increased consumption and power plant restocking [4][10] Price Forecasts - Coal prices are expected to remain at current levels or see slight increases, with no annual price falling below current levels [2][12] - The price center for coal in 2026 is anticipated to be slightly higher than in 2025, with coking coal prices expected to remain stable [2][13] Capital Expenditure and Projects - Capital expenditure for 2025 is planned at approximately 21 billion yuan, with future spending expected to range between 15 billion to 20 billion yuan annually, focusing on ongoing mining, chemical, power, and renewable energy projects [2][18][23] - Key projects, including the Libai and Weizigou coal mines, are expected to commence production by the end of 2026, with the Yulin Phase II coal chemical project also projected to be operational by the end of 2026 [2][23][24] Dividend Policy - The company adheres to a prudent dividend policy, increasing the cash dividend ratio to 35% for 2024, with potential for future increases, although specific figures remain uncertain [2][18][20][31] Market Outlook - The company is optimistic about its growth potential, with several projects set to come online, indicating a clear growth trajectory for its core business [3][36] - The company maintains a strong balance sheet with a low debt ratio of around 40%, allowing for flexibility in capital allocation and investment opportunities [29][36] Risk Management - The company does not foresee production cuts or shutdowns due to current coal prices, which are above the cost threshold for operations [16] - The impact of safety regulations on production timelines has been acknowledged, with increased costs leading to delays in project completions [24] Additional Insights - The chemical segment remains stable, with historical profitability even during high-price years, supported by rising oil prices [17] - The company is exploring renewable energy projects, focusing on practical applications rather than high-profile initiatives, with current contributions to overall revenue being minimal [25] Analyst Sentiment - Guosheng Securities expresses a positive outlook on China Coal Energy, citing undervaluation and potential for price recovery, alongside a favorable asset-liability situation and growth prospects from upcoming projects [3][36]

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10]. Core Insights - The recent strong rebound in coking coal futures is attributed to a combination of supply contraction and improved demand fundamentals, although medium to long-term price pressures may persist if demand does not see significant positive changes [2][7]. - The coal index (Yangtze) increased by 1.68% this week, underperforming the CSI 300 index by 0.27 percentage points, ranking 25th out of 32 industries [19]. - Coking coal prices are supported by supply tightening due to safety inspections and environmental regulations, while demand remains stable due to steel production [6][20]. Summary by Sections Coking Coal Market - Coking coal futures saw a weekly increase of 6.34%, closing at 848 CNY/ton, significantly outperforming other commodities in the coal-steel-mining chain [7][14]. - Supply-side factors include reduced production from safety checks and environmental inspections, leading to a 0.53% week-on-week decrease in weekly refined coal output [7][20]. - Demand remains stable, with average daily pig iron production from 247 steel mills at 2.4229 million tons, showing a slight increase of 0.05% week-on-week [7][20]. Investment Recommendations - The report suggests marginal allocation to long-term stable profit leaders such as China Coal Energy (A+H), China Shenhua (A+H), and Shaanxi Coal and Chemical Industry [8]. - For growth-oriented investments, Electric Power Investment and New集 Energy are recommended, while coking coal companies like Shanxi Coking Coal, Huaibei Mining, and Pingdingshan Coal are highlighted for their potential [8]. Price Trends - As of June 27, the market price for Qinhuangdao 5500 kcal thermal coal is 620 CNY/ton, reflecting an increase of 11 CNY/ton week-on-week [19][42]. - The main coking coal price at Jingtang Port remains stable at 1230 CNY/ton, while the price for first-grade metallurgical coke is 1280 CNY/ton, unchanged from the previous week [19][20].

Investment Rating - The industry investment rating is "Increase" [5][7]. Core Viewpoints - The current coal price adjustment has been ongoing for nearly four years since the historical peak in Q4 2021, and the market is well aware of the price decline. The industry is at a critical stage of price bottoming, and the bottom may not be far off. It is essential to grasp the intrinsic attributes of the industry and maintain confidence and determination [3]. - Domestic coal companies are increasingly facing losses, with over half (54.8%) of coal enterprises reporting losses as of March 2025. This situation may lead to a higher probability of both passive and active production cuts as prices continue to decline [3]. - The report emphasizes the potential for a rebound in coal prices due to the high costs of overseas coal mines, which may lead to reduced imports and a subsequent increase in domestic coal prices [3]. Summary by Sections Coal Mining - The European coal market is experiencing a price decline, with ARA port coal prices at $103.4 per ton, down $3.7 per ton (-3.4%) from the previous week. Newcastle port coal prices are at $106.5 per ton, down $0.1 per ton (-0.1%) [1][3]. - The report highlights the impact of geopolitical tensions on natural gas prices, which have led to a simultaneous increase in coal and natural gas prices in Europe by 7-9% [6][3]. Key Recommendations - The report recommends key coal enterprises such as China Shenhua (H+A), China Coal Energy (H+A), and China Qinfa, which is expected to reverse its current difficulties. Other recommended companies include Xinjie Energy, Shaanxi Coal, and Yanzhou Coal, which are expected to perform well [3][7].

Investment Rating - The investment rating for the coal mining sector is "Positive" [2] Core Viewpoints - The current phase is seen as the beginning of a new upward cycle in the coal economy, with a resonance between fundamentals and policies, making it an opportune time to accumulate coal sector stocks [11][12] - The coal price has stabilized and is expected to continue its upward trend due to safety inspections in production areas, ongoing inventory depletion at ports, and the initiation of peak season demand [11][12] - The valuation of the coal sector remains low, and the continuous improvement in fundamentals and price expectations has not yet been fully reflected, highlighting the sector's investment value [11][12] Summary by Sections Coal Price Trends - As of June 28, the market price for Qinhuangdao port thermal coal (Q5500) is 614 CNY/ton, up 4 CNY/ton week-on-week [11][29] - The international thermal coal offshore price for Newcastle NEWC5500 is 65.3 USD/ton, down 1.3 USD/ton week-on-week [11][29] - The price for coking coal at Jing Tang port remains stable at 1250 CNY/ton [11][31] Supply and Demand Analysis - The capacity utilization rate for sample thermal coal mines is 92.9%, down 1.6 percentage points week-on-week, while the coking coal mine utilization rate is 82.48%, down 2.0 percentage points [11][48] - Daily coal consumption in inland provinces has increased by 14.5 thousand tons/day (+4.13%), while consumption in coastal provinces has decreased by 1.6 thousand tons/day (-0.84%) [11][49] Investment Recommendations - The report suggests focusing on stable and high-performing companies such as China Shenhua, Shaanxi Coal and Chemical Industry, and China Coal Energy, as well as those with significant upside potential like Yanzhou Coal Mining and China Power Investment [12][13] - The coal sector is characterized by high performance, high cash flow, and high dividend yields, making it an attractive investment opportunity [12][13]

Meeting Overview - The H-share class shareholders' meeting of China Coal Energy Company Limited was held on June 27, 2025, in Beijing [1][2] - The total number of shares held by A-share shareholders is 7,645,970,840, while H-share shareholders hold 2,328,986,214 shares, representing 75.2335% of the total shares [1] Voting Results - The voting results showed that A-share shareholders voted 99.9871% in favor, with only 0.0127% against and 0.0002% abstaining [1] - H-share shareholders voted 97.3134% in favor, with 2.6707% against and 0.0159% abstaining [1] - The total voting results for ordinary shares indicated 99.3628% in favor, 0.6333% against, and 0.0039% abstaining [1] Attendance and Compliance - The meeting was attended by 12 A-share shareholders, representing 57.6677% of the total shares, while H-share shareholders represented 17.5658% [2] - The meeting was convened in accordance with the Company Law and the Articles of Association, with the chairman Wang Shudong presiding [2] Agenda and Resolutions - The agenda included non-cumulative voting proposals, all of which were passed [3][5] - Specific proposals included the mid-term dividend plan for 2025 and the appointment of the accounting firm for the 2025 mid-term financial report [5][6] Legal Compliance - The procedures for convening and conducting the shareholders' meetings were confirmed to comply with legal regulations and the company's Articles of Association, ensuring the validity of the voting results [6]