Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company experienced a decline in both coal volume and price in H1 2025, leading to a significant drop in revenue and profit. The report emphasizes the importance of asset injection and the clearance of inefficient assets [2][4] - The company reported H1 2025 revenue of 2.38 billion yuan, down 38.9% year-on-year, and a net profit attributable to shareholders of -130 million yuan, down 117% year-on-year. The report has adjusted profit forecasts for 2025-2027, expecting net profits of 110 million, 330 million, and 710 million yuan respectively [2][3] Financial Performance Summary - In H1 2025, the company produced 4.768 million tons of raw coal, a decrease of 3.5% year-on-year, with sales of 3.55 million tons of commercial coal, down 7.7% year-on-year. In Q2 2025, raw coal production was 2.402 million tons, an increase of 1.5% quarter-on-quarter [3] - The average selling price of coal in H1 2025 was 662.2 yuan per ton, down 30.6% year-on-year, while the cost per ton was 567.2 yuan, up 1.6% year-on-year [3] - The gross profit per ton of coal in H1 2025 was 94.9 yuan, down 76.1% year-on-year, with a gross margin of 14.3%, down 27.2 percentage points year-on-year [3] Asset Management and Future Outlook - The company has decided to deregister a loss-making subsidiary, which is expected to reduce losses and optimize the profit structure. This move is anticipated to enhance the profitability of the coal business when coal prices recover [4] - The company confirmed the successful operation of a new power generation unit, which is expected to generate approximately 5 billion kilowatt-hours annually, providing a strong support for long-term stable development [4] - The report highlights the company's commitment to asset injection, with expectations for significant growth in resource reserves and production capacity if transactions materialize [4]