Summary of Key Points from the Conference Call on the Coal Industry Industry Overview - The conference call focuses on the coal industry in China, particularly the implications of the National Energy Administration's (NEA) recent coal mine production inspection and its impact on coal supply and prices [1][3][4]. Core Insights and Arguments - **Inspection Initiation**: The NEA has launched a coal mine production inspection aimed at regulating coal production capacity, particularly focusing on mines exceeding their approved production capacity by 10% in the first half of 2025, which may lead to shutdowns [1][4][13]. - **Pre-Approved Capacity Policy**: Initiated in 2022 to ensure energy supply, approximately 40% of the pre-approved capacity has not completed legalization procedures, which could affect future coal production [1][8]. - **High Replacement Indicator Costs**: The high costs associated with coal mine capacity replacement indicators and incomplete environmental assessments have decreased the willingness of coal companies to purchase these indicators, leading to some mines ceasing operations due to losses [1][9][10]. - **Market Reaction**: The capital market reacted strongly to the inspection announcement, with coal stocks rising by 5.78%, driven by expectations of reduced coal supply [3][27]. - **Production Utilization Rate**: The national coal production utilization rate fell below 70% in the first half of 2025, indicating that overproduction is not widespread, primarily due to declining coal prices leading to increased losses for companies [1][19][25]. - **Future Price Expectations**: The coal market is expected to improve in the second half of 2025, with prices anticipated to rise above 700 yuan, driven by supply constraints and regulatory measures [27][28]. Additional Important Insights - **Long-Term Demand Outlook**: Coal consumption is projected to peak around 2028 and will not significantly decline during the 14th Five-Year Plan period, with demand expected to remain stable until 2030 or even 2031-32 [2][22][24]. - **Regulatory Consistency**: There is no conflict between the NEA's supply management and inspection policies, both aiming to ensure reasonable and legal production capacity [23]. - **Impact of Supply Control**: The initiation of supply control measures indicates a stronger expectation of marginal supply contraction, with a higher likelihood of non-compliant capacity exiting the market [31]. - **Data Reporting Issues**: Companies may report production data cautiously, leading to discrepancies between actual production and reported figures, complicating the assessment of overproduction [30]. This summary encapsulates the key points discussed in the conference call regarding the coal industry, highlighting regulatory changes, market reactions, and future expectations.

Group 1 - The company held its fourth temporary supervisory board meeting on June 25, 2025, via both in-person and video conference, with all six supervisors present for voting [1][2] - The meeting was chaired by the chairman of the supervisory board, Mr. Guan Yue, and included attendance from senior management and the board secretary [1] - The meeting's proceedings complied with legal, administrative regulations, departmental rules, and the company's articles of association [1] Group 2 - The supervisory board approved a proposal for a perpetual trust business and related transactions with Baorui Trust Co., Ltd., with a unanimous vote of 6 in favor [2][3] - A proposal for the procurement of IT operation and maintenance services for 2025 and related transactions was also unanimously approved by the supervisory board [2][3] - The board approved a proposal regarding the procurement method for the desulfurization system maintenance project at Hohhot Pit Power Company, with a unanimous vote [2][3] - A proposal for the investment purchase method to implement capacity replacement indicators at the South Open-pit Coal Mine was unanimously approved by the supervisory board [2][3]