Group 1 - The core viewpoint of the article is the establishment of a new energy company in Hubei, which includes heating services as part of its business operations [1] - The newly formed company, China Coal (Macheng) New Energy Co., Ltd., has a registered capital of 50 million yuan [1] - The business scope of the company includes power generation, transmission, distribution, hydropower generation, heating services, cooling services, and thermal production and supply [1] Group 2 - The company is jointly owned by China Coal Energy Group Co., Ltd. and Macheng City Energy Investment and Development Co., Ltd. [1] - The legal representative of the new company is Xue Jianwei [1]

Investment Rating - The report maintains a "Recommended" rating for the coal mining industry [1] Core Viewpoints - The coal price has reached a bottom, leading to a potential investment opportunity as prices rebound alongside low sector congestion [1][12] - The performance of the coal mining sector in the first half of 2025 has been negatively impacted by falling coal prices, with significant declines in revenue and profit for major coal companies [33][36] - Despite the challenges, the report suggests that the current market pessimism regarding coal prices has been largely priced in, indicating a potential for recovery [12] Summary by Sections 1. Overview of H1 2025 - In H1 2025, the coal supply-demand balance was loose, resulting in a decline in the average coal price [19][21] - The total revenue for 28 key coal companies was CNY 553.918 billion, down 17.8% year-on-year, with net profit dropping 31.5% to CNY 72.284 billion [33][36] - Coal production increased by 1.6% to 615 million tons, while sales volume decreased by 1.8% to 561 million tons [50] 2. Financial Performance - The average sales price of coal fell by 20% to CNY 480 per ton, while the average cost decreased by 9% to CNY 306 per ton, leading to a 33% drop in gross profit [5][8] - The average gross margin for the 28 coal companies was 36%, down 7.4 percentage points year-on-year [8] - Operating cash flow decreased by 27% to CNY 1,042.20 billion, with a slight increase in the average debt-to-asset ratio to 53.2% [9][12] 3. Market Dynamics - The coal price for Q2 2025 continued to decline, but signs of recovery were noted in Q3 due to seasonal demand and supply constraints [10][12] - The report highlights that the coal sector's low congestion levels and high dividend yields present a compelling case for bottom-fishing investments [12] 4. Investment Strategy - The report recommends focusing on companies with strong fundamentals and cash flow, such as China Shenhua, Shaanxi Coal, and Yanzhou Coal [12][14] - It emphasizes the importance of monitoring the evolving supply-demand dynamics and potential policy impacts on the coal market [12][19]

Summary of Coal Industry Research and Conference Call Industry Overview - The coal industry has faced significant challenges since 2013, with profits declining sharply and the industry suffering severe losses exceeding 95% by the end of 2015. Coal prices halved, leading to cash flow pressures and debt default risks, with the debt level surpassing 3 trillion RMB and debt-to-asset ratios exceeding 70% [1][2][4]. Key Points on Supply-Side Reform - The supply-side reform aimed to address existential threats to coal enterprises, including severe debt risks and potential systemic financial risks, as well as social issues like reduced worker incomes and unemployment threats [1][4]. - The reform involved eliminating outdated production capacity, controlling new capacity, and providing financial support, which included subsidies and price stabilization measures [1][8][10]. - The implementation of the 276 working days policy in 2016 forced mines to operate only 276 days a year, leading to a rapid increase in coal prices, which doubled before the policy was revoked in March 2017 [1][3][13]. Market Dynamics and Price Fluctuations - The coal industry experienced four major market fluctuations from 2016 to 2018, influenced by policies such as the 276 working days limit and import restrictions. Coal prices saw significant increases during these periods, particularly for coking coal [3][19]. - The first wave of price increases occurred from May to the end of 2016, with coal prices rising from 400 RMB to 730 RMB, driven by production cuts [19]. - Subsequent waves of price increases were noted in 2017 and early 2018, with prices reaching over 1,000 RMB during peak winter demand [19]. Financial Implications - The supply-side reform had a notable impact on coal prices and stock prices, with significant recoveries observed starting in 2016. For instance, from February to April 2016, thermal coal prices increased by 17%, and coking coal prices rose by 30% [14][15]. - By 2020, over 1 billion tons of outdated capacity had been eliminated, representing 20% of the total capacity as of the end of 2015, which improved overall industry efficiency and safety [9][21]. Regional Challenges - The Shanxi region faced unique challenges, including a heavier personnel burden compared to other major coal-producing areas, which exacerbated its losses [5][6]. - In Shaanxi, companies like Shaanxi Coal and Chemical Industry Group experienced severe price drops, with prices as low as 165 RMB, while still facing operational difficulties [6]. Future Outlook - The current market outlook suggests that future trends will continue to be influenced by supply-demand dynamics and policy adjustments. The implementation of anti-involution measures is expected to stabilize supply and enhance overall profitability [22][23]. - Recommendations include focusing on coking coal companies and large leading enterprises with dividend potential, such as China Coal and Shenhua, anticipating a significant rebound in the coking coal sector [22][23].

Group 1 - The core viewpoint of the article highlights a general increase in coal stocks in the Hong Kong market on September 8, with notable gains among various companies [1] Group 2 - Strength Development saw a rise of 2.6% [1] - China Qinfa, Yanzhou Coal Mining, China Coal Energy, and South Gobi all increased by over 2% [1] - China Shenhua rose by 1.5%, while Yida Zong also gained over 1% [1] - Shougang Resources followed the upward trend [1]

Investment Rating - The coal industry is rated positively, with a focus on recovery in coal prices in the second half of 2025, which is expected to lead to performance recovery for coal companies [5][43]. Core Insights - In the first half of 2025, the coal sector underperformed the market, with the Shenwan coal mining index declining by 12.73%, while the Shanghai Composite Index rose by 2.76% [5][8]. - The average price of Q5500 thermal coal at ports was approximately 678 CNY/ton, down 22.57% year-on-year, and the average price for the second quarter was 633 CNY/ton, down 25.27% year-on-year [5][16]. - The overall revenue of 23 major listed coal companies was 513.1 billion CNY, a decrease of 18.9% year-on-year, with net profit falling by 31.1% to 55.5 billion CNY [5][22]. - The average dividend payout ratio for the coal industry increased to approximately 56.3% in 2024, reflecting a high dividend yield characteristic [5][35]. - The average return on equity (ROE) for the coal industry decreased to about 5.8% in the first half of 2025, down from previous years [5][41]. Summary by Sections 1. Industry Performance - The coal sector's performance was weaker than the market, with significant price declines impacting profitability [5][8]. - The first half of 2025 saw a high inventory level and a traditional off-peak season, leading to downward pressure on coal prices [5][16]. 2. Revenue and Profitability - Major coal companies reported a total revenue of 513.1 billion CNY, with a notable decline in both thermal and coking coal revenues [5][21]. - The net profit for the coal sector dropped significantly, with the thermal coal segment seeing a 24.1% decrease in net profit [5][22]. 3. Financial Metrics - The average expense ratio for the coal mining sector was 9.74%, showing a slight increase from the previous year [5][29]. - The industry maintained an average debt-to-asset ratio below 50%, indicating stable financial health [5][33]. 4. Dividend Trends - The coal industry's average dividend payout ratio has been on the rise, with several companies planning mid-year dividends in response to favorable policies [5][35]. 5. Investment Recommendations - Recommended stocks include China Shenhua, Shaanxi Coal, and China Coal for their stable operations and high dividends, while Shanxi Coal and Lu'an Environmental Energy are noted for their undervalued potential [5][43].

Investment Rating - The report maintains a rating of "Buy" for key coal companies such as China Shenhua and China Coal Energy, and recommends attention to China Qinfa for potential turnaround opportunities [2][5]. Core Insights - The Indian government has adjusted the Goods and Services Tax (GST) on coal and related products from 5% to 18%, while removing a compensation cess of 400 INR per ton. This tax reform is expected to enhance tax transparency and management efficiency, potentially reducing the generation cost for Indian power companies by 0.12 INR per kWh [2]. - The report highlights a marginal adjustment in coal prices, with Newcastle coal at $108.25 per ton, down by $3.25 per ton (-2.91%) compared to the previous week [1][29]. - The report indicates a slight increase in natural gas prices, with the Northeast Asia LNG spot price at $11.292 per million British thermal units, up by $0.146 (+1.31%) [1][16]. Summary by Sections Coal Mining - The report notes a decrease in coal prices across various markets, with European ARA coal at $95.75 per ton (-0.52%), and IPE South African Richards Bay coal at $87.3 per ton (-2.20%) [1][29]. - The report emphasizes the importance of coal companies with strong performance metrics, recommending companies like Shaanxi Coal and Energy, and Huainan Mining for their robust earnings [2][5]. Energy Prices - Brent crude oil futures settled at $65.5 per barrel, down by $2.62 (-3.85%), while WTI crude oil futures were at $61.87 per barrel, down by $2.14 (-3.34%) [1][12]. - The report also highlights the marginal increase in natural gas prices, with the Dutch TTF gas futures at €32.412 per megawatt hour, up by €0.853 (+2.70%) [1][16]. Power Demand - There is a noted marginal increase in coal power demand, indicating a potential recovery in the coal electricity sector [31].

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The coal sector has shown resilience, with a slight increase in prices and a positive outlook for the second half of the year, suggesting a potential balance between supply and demand [6][23] - The report highlights the importance of positioning in high-dividend coal companies and those undergoing turnaround in coking coal and coke sectors [6][23] Summary by Sections Market Performance - As of September 5, 2025, the CITIC coal industry index rose by 0.1%, outperforming the CSI 300 index, which fell by 0.81%, resulting in a 0.91 percentage point advantage [2] - The highest weekly stock price increase was seen in Yunmei Energy, with a rise of 4.03% [2] Supply and Demand Data - Average daily coal sales for monitored enterprises were 6.67 million tons, a week-on-week increase of 0.9% but a year-on-year decrease of 1.9% [2] - The average daily coal production was 6.64 million tons, showing a week-on-week decrease of 0.1% and a year-on-year decrease of 1.7% [2] - Total coal inventory (including port storage) was 25.85 million tons, down 0.7% week-on-week and down 9.1% year-on-year [2] Price Trends - The price index for thermal coal (Q5500K) was 676 CNY/ton, reflecting a week-on-week increase of 0.75% [3] - The average price for coking coal at Jing Tang Port was 1550 CNY/ton, down 4.9% week-on-week [4] - The report notes fluctuations in prices across various coal types, with some showing declines while others have remained stable [4][5] Investment Recommendations - The report suggests that coal prices are expected to rebound in September, with long-term contract prices for different grades of coal being 674, 613, and 551 CNY/ton respectively [6][23] - Recommended companies for investment include major thermal coal firms such as China Shenhua, Shaanxi Coal, and others, as well as coking coal companies like Huabei Mining and Shanxi Coking Coal [6][23]

Investment Rating - The coal industry is rated as "Outperform" [1] Core Viewpoints - The coal industry is experiencing a performance bottoming out, with improvements expected in the future. In Q2 2025, national raw coal production remained high, but commodity coal consumption decreased by 11.8% month-on-month during the off-season, leading to a significant supply-demand imbalance and high social inventory, which pressured coal prices downwards. Except for the coking coal sector, which benefited from the price dual-track system, the performance of coal companies generally faced pressure [2][11] - The supply side is tightening due to rainfall and production checks, with July's production decreasing by 40 million tons month-on-month and 9 million tons year-on-year. The four major producing regions all saw a reduction in output, with Xinjiang experiencing the largest month-on-month decrease [3][30] - Demand improved significantly in July, entering the peak season, with national commodity coal consumption reaching 450 million tons, a year-on-year increase of 1.9% and a month-on-month increase of 12.5%. The upcoming non-electric consumption peak season in September and October is expected to support coal demand [4][67] - Inventory levels across various segments have decreased, with port inventories lower than the same period last year, which may provide support for coal prices [5] - Coal prices are expected to rebound due to supply contraction expectations and the upcoming non-electric demand peak season. The price of thermal coal has rebounded close to 100 yuan/ton, and the downside potential is limited [5] Summary by Sections Q2 2025 Performance Summary - The coal industry is at a performance bottom, with improvements anticipated. Q2 2025 saw a high national raw coal output but a significant drop in commodity coal consumption during the off-season, leading to a supply-demand imbalance and falling prices [2][11] Supply - July's coal production decreased significantly due to rainfall and production checks, with a month-on-month reduction of 40 million tons and a year-on-year decrease of 9 million tons. The supply tightening expectations remain [3][30] Demand - July marked the peak demand season, with a notable improvement in coal consumption. National commodity coal consumption reached 450 million tons, a year-on-year increase of 1.9% and a month-on-month increase of 12.5%. The upcoming non-electric consumption peak season is expected to sustain coal demand [4][67] Inventory - Inventory levels across various segments have decreased, with port inventories lower than the same period last year, potentially supporting coal prices [5] Price - Coal prices are expected to rebound due to supply contraction expectations and the upcoming non-electric demand peak season. The price of thermal coal has rebounded close to 100 yuan/ton, with limited downside potential [5]

（於中華人民共和國註冊成立的股份有限公司） 股份代碼 : 01898 中期報告 存 以 量 提 效 與 增 量 轉 型 並 舉 高 質 量 發 展 回 饋 投 資 者 2025 中國中煤能源股份有限公司 二零二五年中期報告 1 董事長致辭 尊敬的各位股東： 2025年上半年，中煤能源堅決貫徹黨中央、國務院決策部署，深入踐行「存量提效、增量轉型」發展思路，在煤炭 市場持續下行的背景下，積極應對困難挑戰，紥實推進高質量發展，生產經營保持良好態勢。報告期內，本集團 實現收入744億元、本公司股東應佔利潤73億元，經營總體平穩；經營活動現金淨流入77億元，創現能力良好；資 產負債率45.1%，財務結構更趨穩健。積極回饋投資者，提升2024年度分紅比例並實施2025年中期分紅，優化分紅 節奏，提升投資者獲得感。 上半年，本集團科學高效組織生產，持續強化產銷協同。煤炭業務着力優化生產佈局，充分釋放礦井優質產能， 完成商品煤產量6,734萬噸，同比增加84萬噸。緊盯穩市場份額和長協合同履約，加大「兩湖一江」冶金煤市場開 拓，開闢大海則煤下水通道，完成自產商品煤銷量6,711萬噸，同比增加92萬噸。煤化工業務「安穩長滿優」運 ...

Investment Rating - The report maintains a "Buy" rating for the coal mining sector, indicating a positive outlook for the industry moving forward [5]. Core Insights - The report emphasizes that the coal industry is experiencing a reversal rather than a rebound, with expectations for profitability to improve as coal prices have likely reached their lowest point [12][10]. - The report highlights that coal prices have begun to stabilize and recover, particularly in the context of both thermal and coking coal [15][19]. Summary by Sections Market Overview - As of September 1, 2025, the spot price for Q5500 thermal coal is reported at 695 CNY/ton, down 73 CNY/ton from the beginning of the year but up 77 CNY/ton from the lowest price in June [19]. - The average spot price for Q5500 thermal coal in Q2 2025 was 642 CNY/ton, reflecting a year-on-year decline of 211 CNY/ton (24.7%) and a quarter-on-quarter decline of 91 CNY/ton (12.5%) [19]. - Coking coal prices have also shown resilience, with the price for low-sulfur coking coal reported at 1480 CNY/ton, up 100 CNY/ton from the start of the year [23]. Performance Overview - The report notes that the coal sector has underperformed compared to the broader market, with the CSI 300 index rising by 16.37% from April 1 to September 1, 2025, while the coal index only increased by 8.99% [2][29]. - Among 26 sampled coal companies, 19 saw their stock prices rise, while 7 experienced declines during the same period [2]. Fund Holdings - As of Q2 2025, active funds held 0.43% of their portfolios in the coal sector, a slight decrease from Q1, while passive funds held 0.71%, also down from the previous quarter [3][34]. - The combined holding of both active and passive funds in the coal sector is 0.55%, reflecting a decline of 0.06 percentage points from Q1 2025 [3]. Financial Performance - The report indicates that coal companies' profits have been under pressure due to declining coal prices, with a total profit decline of 5.4% to 113.7% among the sampled companies [3][12]. - Notably, companies like Electric Power Energy and Kailuan achieved profit growth despite the overall downward trend in the sector [3]. Operational Insights - Coal companies are focusing on increasing production, improving quality, and reducing costs to mitigate the impact of falling prices [4][12]. - The total coal production for the sampled companies in H1 2025 was 586 million tons, a year-on-year increase of 4.5% [12]. Investment Recommendations - The report recommends stocks with strong earnings elasticity such as Lu'an Energy, Yanzhou Coal, and Jinkong Coal, while also highlighting key state-owned enterprises like China Shenhua and China Coal Energy for potential investment [10][11].