Summary of Shanxi Coal International Conference Call Company Overview - **Company**: Shanxi Coal International - **Industry**: Coal Production and Trade Key Points Production and Sales Targets - The target for raw coal production in 2026 is set at **35 million tons**, with sales expected to be between **26 to 27 million tons**. The company anticipates maintaining this production and sales level over the next two years [2][3] Impact of Indonesian Coal Policies - The company expects limited impact from Indonesian coal policy changes on its overall import volume for 2026, despite a decline in imports starting from May 2025 [2][3] Domestic Coal Business Strategy - The company will not significantly increase its domestic coal business to compensate for potential import shortfalls, maintaining a stable approach to its domestic operations [4] Customer Demand and Service Offerings - There is a trend among downstream customers to substitute domestic coal for some imported coal. The company plans to provide comprehensive services, including production, supply, sales, trade, and transportation, to meet this demand [5] Production Flexibility - The company does not foresee significant flexibility in increasing raw coal production beyond the target of **35 million tons** in the near term [5][6] Production and Sales Rate - The current production and sales rate stands at approximately **80%**. The main factor affecting this rate is the company's strategy of comprehensive washing of raw coal to maximize resource utilization. Future improvements are expected through advancements in washing technology [6] Resource Expansion Strategy - The company is actively monitoring three new resource auctions in Shanxi province and plans to participate. Evaluation criteria for bidding include coal type, quality, geological conditions, and return on investment [7] Capital Expenditure and Dividend Policy - Future capital expenditures are planned to be controlled within **1.2 to 1.5 billion yuan**. The company aims to maintain a dividend payout ratio of no less than **60%** from 2024 to 2026 [9] Coal Price Outlook - Domestic coal prices are expected to have upward potential, targeting a range of **700 to 800 yuan/ton**. Key factors influencing this outlook include reductions in Indonesian coal supply, domestic demand, and the enforcement of coal production capacity policies [10][11] Current Projects and Restructuring - The restructuring plan for Hequ Open-pit Coal Industry is still in progress, with no significant updates or approvals received yet [6] M&A and Asset Injection Plans - The company currently has no plans for mergers, acquisitions, or asset injections [8]