Core Viewpoint - The company is implementing a strategic initiative called "East Introduction, West Advancement, and Overseas Expansion" to optimize its industrial layout and enhance competitiveness in various markets [1][5][8]. Group 1: East Introduction - The company focuses on enhancing innovation capabilities by leveraging high-quality resources from eastern regions, driving traditional industries towards high-end, green, and intelligent transformation [2]. - Collaborations with leading enterprises, such as a joint venture with a global leader in nylon66 fiber, aim to improve the competitiveness of the industrial chain [3]. Group 2: West Advancement - The company is integrating regional resources in western areas, particularly in Xinjiang, Ningxia, and Inner Mongolia, to develop coal, electricity, and nylon integrated projects, thereby addressing challenges related to resource depletion and cost pressures [5][6]. - Significant projects in Xinjiang, including coal mining and power generation, are expected to generate substantial revenue and create thousands of jobs [7]. Group 3: Overseas Expansion - The company is shifting its strategy from merely exporting products to exporting capacity and brand, focusing on overseas markets such as Tajikistan and Thailand [8][9]. - In Tajikistan, the company is enhancing coal production capacity significantly, while in Thailand, it is establishing a facility to cater to the growing industrial market in Southeast Asia [8][9].

Core Viewpoint - In the first half of 2025, the company experienced a significant decline in revenue and net profit, primarily due to decreased coal sales and prices, despite effective cost control measures [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 10.1 billion yuan, a year-on-year decrease of 38% [1] - The net profit attributable to shareholders was 260 million yuan, down 82% year-on-year [1] - The weighted average return on equity was 0.97%, a decrease of 4.03 percentage points year-on-year [1] - In Q2 2025, revenue was 4.7 billion yuan, a quarter-on-quarter decline of 13% and a year-on-year decline of 41% [1] - The net profit for Q2 was 110 million yuan, down 30% quarter-on-quarter and 84% year-on-year [1] Group 2: Coal Business Performance - In H1 2025, coal sales and prices decreased, impacting overall performance, although cost control was effective with a 20% year-on-year reduction in coal cost per ton [2] - The company produced 14.53 million tons of raw coal in H1 2025, an increase of 2% year-on-year, while the sales volume of commercial coal was 11.74 million tons, down 13% year-on-year [2] - The unit selling price of commercial coal in H1 2025 was 768 yuan/ton, a decrease of 29% year-on-year [2] - The cost per ton of coal was 619 yuan, down 20% year-on-year, with a gross profit of 149 yuan per ton, a decrease of 53% year-on-year [2] - In Q2 2025, the unit selling price of commercial coal increased to 774 yuan/ton, up 1% quarter-on-quarter [2] - The gross profit per ton of coal in Q2 was 151 yuan, an increase of 2% quarter-on-quarter [2] Group 3: Strategic Developments - The company is implementing a strategy to acquire high-quality coal resources, having acquired 60% of Xinjiang Wusu Sike Tree Coal Co. for 660 million yuan, which has an annual coal production capacity of 1.2 million tons [3] - In October 2024, the company successfully obtained exploration rights for the Tarcheng Baiyanghe Mine with a resource reserve of 1.668 billion tons for 1.748 billion yuan [3] - The ongoing acquisition of quality coal resources is expected to enhance the company's resource continuity and positively impact future performance as new production capacity is gradually released [3] Group 4: Profit Forecast and Investment Rating - The company forecasts revenues of 24.3 billion yuan, 25.5 billion yuan, and 26.9 billion yuan for 2025-2027, with year-on-year changes of -20%, +5%, and +5% respectively [3] - The net profit attributable to shareholders is projected to be 600 million yuan, 1.2 billion yuan, and 1.8 billion yuan for the same period, with year-on-year changes of -75%, +105%, and +50% respectively [3] - The earnings per share (EPS) are expected to be 0.24 yuan, 0.50 yuan, and 0.74 yuan, corresponding to price-to-earnings ratios of 32, 16, and 10 times [3] - The investment rating is maintained at "Accumulate" considering the current stabilization of coking coal prices [3]