Core Viewpoint - The sodium battery industry in China is entering a commercialization phase, with annual shipments expected to exceed 3.7 GWh by 2025, marking a significant milestone despite being far behind lithium battery giants [1][2]. Industry Overview - The sodium battery industry is poised for growth, driven by rising lithium carbonate prices, which have surged to as high as 179,000 yuan/ton, prompting interest in sodium batteries as a cost-effective alternative [3][5]. - The industry is characterized by a dual structure, with established lithium battery leaders like CATL and BYD alongside emerging sodium battery companies such as Zhongke Haina and Sodium Innovation Energy [3][7]. Market Dynamics - The year 2026 is being marked as the "year of sodium battery industrialization," with companies ramping up production lines and securing orders in response to market demand [3][5]. - The sodium battery's advantages include abundant raw materials, stable pricing of sodium carbonate, and superior low-temperature performance and safety features compared to lithium batteries [1][3]. Challenges and Pressures - The sodium battery industry faces significant challenges, including capacity bottlenecks, performance gaps compared to lithium batteries, and an immature supply chain [3][9]. - Current sodium battery energy densities range from 100 to 160 Wh/kg, while lithium iron phosphate batteries achieve 160 to 200 Wh/kg, indicating a need for technological advancements [9]. Standardization Efforts - The establishment of a comprehensive standardization framework is underway, with the Ministry of Industry and Information Technology guiding the development of national and industry standards for sodium batteries [4][15]. - Existing standards are insufficient, particularly in areas such as safety, performance requirements, and testing methods for specific sodium battery applications [14][16]. Future Outlook - The sodium battery industry is expected to see increased investment and development, with major players like CATL and BYD committing to large-scale applications in various sectors [7][8]. - The industry's growth will depend on overcoming current challenges, including production capacity, cost competitiveness, and the establishment of a robust standardization system [9][12].

Core Viewpoint - Compliance is essential for sustainable business operations and high-quality development, serving as a foundation for the company’s growth and responsibility as a state-owned enterprise [2]. Compliance Governance - The company recognizes that compliance is a mandatory requirement, not an option, and integrates compliance awareness into its corporate culture through top-down mobilization and bottom-up self-inspection [3]. - A comprehensive compliance management system is established, focusing on decision-making, management, and operational compliance, guided by national policies and regulations [4]. - The company has revised its governance documents to enhance decision-making processes and prevent compliance risks, ensuring clear responsibilities across its subsidiaries [4]. Operational Compliance - The company has implemented various compliance documents, including a compliance management manual and safety operation guidelines, to cover critical areas such as coal production and new energy projects [5]. - A four-dimensional supervision system has been created, combining disciplinary inspection, internal auditing, risk prevention, and public oversight to ensure compliance [6]. Cultural Integration - The company promotes a compliance culture as a core part of its corporate identity, conducting extensive training and awareness programs to instill compliance values among employees [7]. - Innovative methods for compliance education have been adopted, utilizing social media platforms to engage employees and promote compliance knowledge [8]. High-Quality Development - Compliance is viewed as a driver for high-quality development, with the company integrating compliance management into its operational strategies to enhance safety and efficiency in coal production [9]. - In the new energy sector, compliance has facilitated project approvals and market expansion, contributing to the company’s recognition in the capital market and various awards [10]. Future Outlook - The company aims to enhance its compliance management system in response to evolving regulations and market conditions, focusing on integrating compliance with digital management systems and fostering a unique compliance culture [12].

Summary of Key Points from the Conference Call Company Overview - **Company**: Huayang Co., Ltd. - **Industry**: Carbon Fiber and Sodium-ion Battery Core Insights and Arguments - **Carbon Fiber Production**: - The first phase of the T1000-grade carbon fiber production line has been launched with an annual capacity of 200 tons, located in the Datong Yungang Economic Development Zone, with an investment of approximately 608 million yuan, expected to be completed by November 30, 2025 [1] - The production aims to achieve mass production of 12K small tow T1000-grade carbon fiber, which will be applied in aerospace, high-end equipment, wind power, and new hydrogen energy storage [1] - **Sodium-ion Battery Strategy**: - The company is establishing a full industrial chain for sodium-ion batteries, partnering with Zhongke Haina to advance the production of anode and cathode materials [1] - Huayang has its own production lines for 1GWh battery cells and 1GWh PACK, creating a vertically integrated capability from materials to cells to systems [1] - **Sodium-ion Battery Production and Sales**: - Sodium-ion products have achieved full production and sales in emergency power supply for coal mines, with the sodium-ion business nearing breakeven, contributing to overall revenue in the new energy sector [2] - **Raw Material Advantage**: - Huayang is the largest smokeless coal production base in China, providing high-quality raw materials for sodium-ion carbon-based anodes, which helps in cost reduction and stabilizing supply [2] Additional Important Insights - **Commercial Aerospace Compatibility**: - Carbon fiber is identified as a key material for satellite structures, with a significant proportion of satellite structures using carbon fiber composites, where foreign materials account for 80-90% and domestic usage is steadily increasing [3] - Huayang has achieved mass production of T1000-grade carbon fiber, which meets the potential demand for high-strength, lightweight, and temperature-resistant components in aerospace and low-altitude economies [3] - **Sodium-ion Battery Performance**: - Sodium-ion batteries are noted for their safety, low-temperature performance, cost-effectiveness, and resource autonomy potential, with mainstream companies achieving an energy density of approximately 140Wh/kg and cycle life often exceeding 3000 cycles [3] - Huayang's sodium-ion cell products have an energy density of about 145Wh/kg and a cycle life of approximately 6000 cycles, making them highly suitable for energy storage and ground support applications [3] - **Market Dynamics**: - The rebound in lithium prices is also contributing to the cost advantages of sodium-ion batteries [4]

Core Viewpoint - The article highlights the significant advancements in China's high-performance carbon fiber production, particularly the successful development and mass production of T1000 carbon fiber, which is crucial for various high-tech applications, marking a major step towards achieving self-sufficiency in this critical material [1][7]. Group 1: Development Journey - In January, a new production line for T1000 high-performance carbon fiber began operations in Shanxi, producing 200 tons annually, showcasing China's progress in carbon fiber technology [1]. - The journey to mass production of T300 aerospace-grade carbon fiber began in 2005, with a challenging three-year timeline set by the Chinese Academy of Sciences, contrasting with Japan's 15-year development period [2][3]. - The team at Shanxi Coal Chemical Research Institute opted for an intermittent polymerization method instead of the traditional continuous method, allowing for more flexibility in production despite the complexity [3]. Group 2: Collaborative Efforts - The successful development of T300 involved collaboration among various research institutes and organizations, including the Chemical Research Institute and the Shanghai Organic Chemistry Research Institute, which contributed to the formulation of necessary materials [3][10]. - In 2022, a partnership was formed between the local government, Shanxi Huayang Group, and Shanxi Coal Chemical Research Institute to establish a high-performance carbon fiber production base in Datong, emphasizing the importance of collaboration between academia and industry [10][11]. Group 3: Technological Challenges - The production of T1000 carbon fiber involves a complex dry-jet wet-spinning process, which is critical for achieving the desired material properties, but poses significant engineering challenges due to the sensitivity of the process to environmental factors [8][9]. - The transition from laboratory-scale production to industrial-scale manufacturing presented numerous challenges, including equipment adjustments and maintaining precise control over production parameters [12][13]. Group 4: Future Outlook - The successful mass production of T1000 is expected to position China as a key player in the high-performance carbon fiber market, providing essential materials for strategic emerging industries [13]. - The ongoing efforts to enhance production capabilities and develop next-generation carbon fiber products indicate a commitment to advancing the industry and achieving greater self-reliance in high-tech materials [14].

Report Industry Investment Rating - The investment rating for the coal mining industry is "Bullish" [2] Report's Core View - The coal industry is at the beginning of a new upward cycle, with fundamental and policy factors in resonance. It is advisable to allocate coal stocks on dips. The underlying investment logic of coal production capacity shortage remains unchanged, and coal prices have established a bottom and are expected to rise. High - quality coal enterprises have core asset attributes such as high profitability, high cash flow, high ROE, and high dividends. The coal sector is still undervalued, and its valuation is expected to increase. The coal supply bottleneck is expected to last until the "15th Five - Year Plan", and coal prices are likely to remain high. The report continues to be bullish on the coal sector and recommends top - down attention to several types of coal companies [3][11][12] Summary by Directory 1. This Week's Core View and Key Focus - **Core View**: The coal industry is in the early stage of a new upward cycle. The supply side shows an increase in the utilization rate of sample power and coking coal mine wells. On the demand side, there are differences in coal consumption between inland and coastal areas, and non - electric demand also shows different trends. Coal prices stopped falling and rebounded since late December, but the rebound momentum weakened this week. In the future, inventory depletion and the upcoming cold wave will support coal prices, and the market is expected to be stable and slightly strong before the holiday. The coal sector has high - dividend support and upward elasticity, making it a cost - effective investment [11] - **Investment Suggestions**: Focus on companies with stable operations and performance, those with large previous declines and high elasticity, and high - quality metallurgical coal companies. Also, pay attention to other related companies [12] - **Key Focus**: In 2025, China's coal imports decreased by 9.6% year - on - year; India's coal production was basically flat with a slight decline; global seaborne coal trade decreased by 2.8% [13] 2. This Week's Performance of the Coal Sector and Individual Stocks - The coal sector fell 3.33% this week, underperforming the broader market. The CSI 300 fell 0.57% to 4731.87. The top - three sectors in terms of gains were computer, electronics, and media [14] - The power coal, coking coal, and coke sectors fell 3.46%, 3.66%, and 4.38% respectively [17] - The top - three gainers in the coal mining and washing sector were Anyuan Coal Industry (3.97%), Huayang Co., Ltd. (2.90%), and Diantou Energy (0.81%) [20] 3. Coal Price Tracking - **Coal Price Index**: As of January 16, the comprehensive transaction price of CCTD Qinhuangdao thermal coal (Q5500) was 688.0 yuan/ton, up 2.0 yuan/ton week - on - week; the comprehensive average price index of Bohai Rim thermal coal (Q5500) was 686.0 yuan/ton, up 1.0 yuan/ton week - on - week; the annual long - term agreement price of CCTD Qinhuangdao thermal coal (Q5500) was 684.0 yuan/ton, down 10.0 yuan/ton month - on - month [24] - **Thermal Coal Price**: At ports, the market price of Qinhuangdao Port thermal coal (Q5500) from Shanxi was 697 yuan/ton on January 17, up 1 yuan/ton week - on - week. At production sites, prices in some areas were stable while in Datong, it decreased. Internationally, FOB and CIF prices showed different trends [30] - **Coking Coal Price**: At ports, the prices of coking coal in Jingtang Port and Lianyungang increased. At production sites, prices in some areas increased while in others they were stable. The CIF price of Australian Peak Downs hard coking coal in China increased [32] - **Anthracite and Pulverized Coal Injection Price**: The coking anthracite car - loading price in Jiaozuo was flat, while the prices of pulverized coal injection in Changzhi and Yangquan decreased [40] 4. Coal Supply and Demand Tracking - **Coal Mine Capacity Utilization**: As of January 16, the capacity utilization rate of sample power coal mine wells was 90.6%, up 0.3 percentage points week - on - week; the capacity utilization rate of sample coking coal mine wells was 88.47%, up 3.1 percentage points week - on - week [47] - **Import Coal Price Difference**: As of January 16, the price difference between domestic and foreign 5000 - kcal and 4000 - kcal thermal coal decreased [43] - **Coal - fired Power Consumption and Inventory**: Inland 17 provinces saw a decrease in coal inventory and an increase in daily consumption, while coastal 8 provinces saw a decrease in both inventory and consumption [44] - **Downstream Metallurgical Demand**: The Myspic composite steel price index increased slightly, the price of first - grade metallurgical coke was flat, the blast furnace operating rate decreased, the profit per ton of coke decreased, the profit per ton of steel in the blast furnace increased, the iron - scrap price difference decreased, and the blast furnace scrap consumption ratio decreased [65][66] - **Downstream Chemical and Building Materials Demand**: Urea prices in some regions increased, the national methanol price index decreased, the national ethylene glycol price index decreased, the national acetic acid price index increased, the national synthetic ammonia price index increased, the national cement price index decreased, the cement clinker capacity utilization rate decreased, the float glass operating rate decreased, and chemical weekly coal consumption increased [72][76] 5. Coal Inventory Situation - **Thermal Coal Inventory**: Qinhuangdao Port's coal inventory increased to 550.0 tons; 55 ports' thermal coal inventory decreased to 6830.8 tons; the inventory of 462 sample mines decreased to 283.9 tons [91] - **Coking Coal Inventory**: The production - site inventory decreased to 272.4 tons, the six - port inventory decreased to 298.9 tons, the inventory of independent coking plants increased to 954.8 tons, and the inventory of sample steel mills increased to 802.2 tons [92] - **Coke Inventory**: The inventory of coking plants decreased to 40.6 tons, the four - port inventory increased to 188.1 tons, and the inventory of sample steel mills increased to 650.33 tons [94] 6. Coal Transportation Situation - **International and Domestic Coal Transportation**: As of January 16, the China Yangtze River Coal Transportation Comprehensive Freight Index (CCSFI) was 704 points, down 3.6 points week - on - week [107] - **Ratio of Cargo to Ships at Four Northern Ports**: As of January 16, the inventory at four ports in the Bohai Rim was 1465.2 tons, the number of anchored ships was 99, and the ratio of cargo to ships was 14.8, down 1.96 week - on - week [102] - **Daqin Line Coal Transportation**: The average daily coal shipment volume on the Daqin Line this week was 118.0 tons, up 9.75 tons week - on - week [107] 7. Weather Situation - As of January 16, the Three Gorges outbound flow was 9180 cubic meters per second, up 23.22% week - on - week [114] - In the next 10 days, there will be precipitation in some areas, and a cold wave will affect many regions with significant temperature drops [114] - In the long - term (January 27 - 30), there will be precipitation in some areas, and the average temperature in some regions will be lower or higher than normal [114] 8. Listed Company Valuation Table and Key Announcements - **Listed Company Valuation Table**: The table shows the closing prices, net profit attributable to shareholders, EPS, and PE of key listed companies from 2024A to 2027E [115] - **Key Announcements**: Xinji Energy released its 2025 performance report; Pingdingshan Tianan Coal Mining Co., Ltd. announced the progress of its controlling shareholder's strategic restructuring; Guanghui Energy announced a guarantee - related关联交易; Meijin Energy announced a guarantee for its subsidiary and its 2025 performance forecast [116][117][118] 9. This Week's Important Industry News - By 2030, Guizhou's coal production and trial - operation capacity will reach 260 million tons per year [119] - Yunnan will increase coal resource exploration and promote the release of advanced coal production capacity [119] - 20 coal mines in Ordos passed the intelligent acceptance [119] - Guizhou has made breakthroughs in the coal and unconventional natural gas fields [119] - Jiangsu released its 2026 major project list, including one coal - related project [120]

Investment Rating - The coal industry is rated as "stronger than the market" [7] Core Views - The report emphasizes that the coal industry is currently experiencing a transformation, with policies aimed at energy security and a shift in supply dynamics. The coal price is expected to stabilize, with potential fluctuations in the short term [5][6] - The report highlights the limited elasticity of coal supply due to strict capacity controls and increasing mining difficulties, particularly in eastern regions. This is expected to lead to a concentration of production in western areas, raising supply costs [5] - The report suggests that despite weak macroeconomic conditions affecting coal demand, the rigid supply and rising costs will support coal prices, which are anticipated to maintain a volatile upward trend [5] Summary by Sections 1. Market Overview - The coal index experienced a slight decline of 3.11%, underperforming the Shanghai and Shenzhen 300 index by 2.54 percentage points. Year-to-date, the coal index has increased by 2.96% [13] 2. Thermal Coal - As of January 16, the Qinhuangdao 5500K thermal coal price is 695 CNY/ton, down 4 CNY/ton week-on-week, with a year-on-year decrease of 66 CNY/ton [3][32] - Daily average production from 462 sample mines is 5.467 million tons, a week-on-week increase of 15,000 tons but a year-on-year decrease of 6.2% [3][42] - The report notes a significant drop in daily consumption at major power plants, with inventory levels slightly increasing [3][46] 3. Coking Coal - The price of main coking coal at Jingtang Port has risen to 1,770 CNY/ton, reflecting a week-on-week increase of 150 CNY/ton [4][76] - Daily average production from 523 sample mines is 769,000 tons, with a year-on-year decrease of 2.7% [4][76] - The report indicates that the coking coal market is experiencing upward price adjustments, driven by supply constraints and increased demand from steel production [4][76] 4. Investment Recommendations - The report suggests focusing on companies with strong resource endowments and stable operating performance, such as China Shenhua, China Coal Energy, and Shaanxi Coal and Chemical Industry [6] - Companies with production growth potential and those benefiting from a bottoming coal price cycle are also highlighted, including Yanzhou Coal Mining, Huayang Co., and Gansu Energy [6] - The report recommends considering companies with integrated coal and power operations to mitigate cyclical volatility, such as Shaanxi Energy and Xinji Energy [6]

Investment Rating - The report maintains a "Recommended" rating for several companies in the coal industry, including 晋控煤业, 山煤国际, 潞安环能, 华阳股份, 兖矿能源, 中国神华, 陕西煤业, 中煤能源, and 中广核矿业 [3][4]. Core Insights - The coal prices are expected to remain strong due to a combination of cold weather and pre-holiday stockpiling, with prices projected to fluctuate between 750-1000 RMB/ton [10][12]. - The report highlights a recovery in coal prices post-New Year, driven by reduced production and low inventory levels at ports [10][12]. - The focus is on companies with high spot market exposure and improved balance sheets, particularly those in Shanxi province, which has completed overproduction governance for 2024 [10][12]. - The report suggests that downstream replenishment has begun, leading to a stable to slightly strong outlook for coking coal prices [10][12]. - The first round of price increases for coke is anticipated due to rising raw material costs and improved steel mill profitability [10][12]. Summary by Sections Weekly Market Review - The coal sector experienced a weekly decline of 3.3%, underperforming compared to the broader market indices [18][21]. - The best-performing stocks included 云维股份 and 江钨装备, while 大有能源 faced the largest decline [24][26]. Industry Dynamics - The report notes that Mongolia's coal exports increased by 7.11% year-on-year, while Australia's coal export value decreased by 13.48% [28][32]. - China's coal imports rose by 11.94% in December 2025 compared to the previous year, indicating a recovery in demand [34][34]. Company Performance - New集能源 reported a 3.01% increase in raw coal production for 2025, while 中煤能源 saw an 8.0% decrease in December's coal production [44][45]. - 大有能源 projected a significant net loss for 2025, highlighting the challenges faced by the company in the current market environment [46][51].

Market Performance - The A-share market experienced a high opening but closed lower, with the Shanghai Composite Index down 0.26% at 4101.91 points, the Shenzhen Component down 0.18% at 14281.08 points, and the ChiNext Index down 0.2% at 3361.02 points. The STAR Market 50 Index rose by 1.35% to 1514.07 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 3.03 trillion yuan, with over 2900 stocks declining [1] Sector Performance - The semiconductor industry chain showed strong performance, with stocks like Changdian Technology hitting the daily limit and reaching a five-year high. Other stocks such as Meige Technology, Kangqiang Electronics, and Shenghui Integration also hit the daily limit [1][4] - The storage chip concept saw a significant rise in the afternoon, with stocks like Baiwei Storage and Jiangbolong reaching historical highs [1] - The human-robot concept gained traction, with stocks like Wuzhou New Spring and Founder Electric hitting the daily limit [1] - The electric grid equipment sector remained active, with stocks like Siyuan Electric and Guangdian Electric also hitting the daily limit [2] Investment Insights - According to Dongfang Securities, the spring market is not over, and a slow bull market is expected to continue. The market is gradually returning to a healthy and rational state, with recent hot sectors experiencing larger corrections [7] - Shenwan Hongyuan noted that the market is currently in a "structural bull" high area, anticipating some corrections but with limited magnitude. They expect a phase of adjustment after the spring market [8] - China International Capital Corporation (CICC) forecasts a continued slowdown in financial growth in the first half of 2026, with a focus on quality over quantity in fiscal policy [8] Notable Developments - The electric grid company is expected to invest 4 trillion yuan during the 14th Five-Year Plan period, a 40% increase from the previous plan, aimed at promoting high-quality development in the new power system supply chain [2] - The carbon fiber sector saw a rise in stocks like Zhongjian Technology and Huayang Co., with the successful production of domestically made T1000-grade carbon fiber, which will be used in various high-tech applications [3] - The optical module concept also saw a resurgence, with stocks like Shijia Technology and Kechuan Technology hitting the daily limit, driven by an increase in long-term shipment expectations for Google's TPU chips [6]

Core Insights - Shanxi Huayang Group has completed the construction of a centralized control and underground inspection system for 51 main belt conveyors across its first and second mines and Xinjing Company by the end of 2025, significantly enhancing the intelligent management and safety capabilities of the transportation system [2] - The implementation of this system has led to a reduction of 116 personnel, resulting in annual labor cost savings of 17.4 million yuan, calculated at 150,000 yuan per person per year [2] Group 1 - The traditional model of "multiple personnel on one belt" for long-distance conveyors has been replaced by a more efficient system, reducing labor costs and improving operational efficiency while addressing safety concerns in harsh underground environments [2] - Since 2024, the company has prioritized the intelligent transformation of main transportation belts, focusing on "mechanization replacing manpower, automation reducing manpower, and intelligence achieving unmanned operations" [2] - The centralized control system allows for real-time data collection and remote monitoring of the entire main transportation system, enhancing operational efficiency and safety [2][4] Group 2 - The effectiveness of the intelligent upgrade is evident in the centralized control room of Huayang Group's second mine, where operations have become significantly more efficient, reducing the time to start the entire transportation system from 6 minutes to just 1-2 minutes [3] - The centralized control platform can accurately start and stop each device while collecting critical parameters such as belt speed, current, voltage, and coal level, providing essential data for production scheduling and preventive maintenance [3] - The reduction of underground positions has led to more efficient operations and a shift from experience-driven to data-driven equipment management, supporting the intelligent development of coal mines [4]

Group 1 - The company, Huayang Co., Ltd. (600348.SH), stated that it is currently not involved in export business [1]