Summary of Shaanxi Coal Industry Conference Call Company Overview - **Company**: Shaanxi Coal Industry Co., Ltd. (陕煤股份) - **Industry**: Coal and Power Generation Key Financial Performance - **Net Profit**: In the first half of 2025, the net profit attributable to shareholders was 76.4 billion yuan, with a non-recurring net profit of 72.2 billion yuan, reflecting a positive contribution of 4.2 billion yuan from fair value fluctuations [3][12] - **Quarterly Breakdown**: - Q1: 48.12 billion yuan - Q2: 28.3 billion yuan, a decline attributed to falling coal prices and a one-time increase in deferred tax expenses of 5.7 billion yuan due to the liquidation of the Zhuque New Material Phase II asset management plan [2][3] Production and Cost Management - **Coal Production**: - July 2025 production was 14.11 million tons, with August expected to remain stable but slightly lower than May and June due to maintenance and safety incidents [4][5] - Full-year production is projected to be around 170 million tons, consistent with the previous year [4][24] - **Cost Control**: - The complete cost per ton of coal was 280 yuan in the first half of 2025, with a slight decrease expected in the second half [6][22] Coal Price Trends - **Price Fluctuations**: - Q1 average coal price was 449 yuan per ton, dropping to 389 yuan in Q2, with an overall average of 420 yuan for the first half [7][23] - Prices have shown signs of recovery in July and August, with expectations for the second half to outperform the first half [7][23] Power Generation Assets - **Performance**: - The net profit from power generation assets in the first half was 6.18 billion yuan, with a total generation of 177 billion kWh and sales of 166 billion kWh [8] - The average selling price was 0.41 yuan per kWh, with a cost of 0.34 yuan per kWh, yielding a profit of 6-7 cents per kWh [8] Strategic Adjustments - **Long-term Contract Adjustments**: - Starting April 2025, 20% of long-term contracts will be settled at market prices for clients meeting an 80% fulfillment rate, aimed at increasing flexibility and accuracy in pricing [9] - **Focus on Core Business**: - The company is gradually exiting non-core investments and focusing on coal and power generation, with plans to enhance its operational efficiency [14][11] Future Outlook - **Market Expectations**: - The overall coal market in the second half of 2025 is expected to improve compared to the first half, with regulatory checks on overproduction impacting supply [10][23] - **Long-term Plans**: - The company aims to leverage its high-quality production capacity and natural resources while continuing to invest in power generation projects [11][20] Environmental and Regulatory Challenges - **Resource Depletion**: - The company is transitioning from the Copper River mining area due to resource depletion and is focusing on developing new mines in the Shaanxi North region [19] - **Approval Delays**: - Delays in exploration rights approvals are attributed to national supply regulation rather than environmental issues, despite ongoing efforts to address environmental concerns [27] Conclusion Shaanxi Coal Industry is navigating a challenging market environment with strategic adjustments in production, cost management, and a focus on core operations. The company is positioned to improve its performance in the latter half of 2025 while addressing regulatory and environmental challenges.

Core Viewpoint - The meeting emphasized the importance of aligning thoughts and actions with the Central Committee's scientific judgment of the current economic situation and decision-making on economic work, focusing on achieving goals and accelerating the implementation of food and material reserve work in the second half of the year [1][2]. Group 1: Implementation Focus Areas - The first focus area is on facility construction, which requires a reverse schedule and organized construction to accelerate progress while ensuring safety and quality [1]. - The second focus area is on reserve management, which involves tailored strategies for different varieties to enhance national reserve capabilities in response to external uncertainties [1]. - The third focus area is on stabilizing prices and ensuring supply, which includes coordinating grain purchases and market regulation to maintain smooth sales for farmers and stabilize grain prices [1]. - The fourth focus area is on strengthening supervision, which involves rigorous enforcement actions against violations such as delayed payments to farmers [1]. - The fifth focus area is on improving quality and efficiency, focusing on key project implementation and promoting technological innovation and quality standards in the grain industry [1]. Group 2: Emergency and Planning Measures - The sixth focus area is on emergency support, which emphasizes the need for quick response in logistics and material distribution to support flood relief efforts while ensuring safety management [2]. - The seventh focus area is on planning, which requires accurate understanding of planning goals and effective formulation of major initiatives to ensure scientific and practical planning [2]. - The eighth focus area is on system construction, which involves addressing issues identified in central inspections and integrating party building with reserve operations for better business outcomes [2].

Group 1: Company Overview - Sichuan Development Longmang Co., Ltd. introduced its main business, strategic planning, core advantages, and recent major projects [3] Group 2: Financial Performance - In 2024, the company achieved a total revenue of CNY 8.178 billion, with international sales contributing CNY 971 million, accounting for 11.88% of total revenue [4] - The company produced 409,600 tons of industrial-grade monoammonium phosphate in 2024, representing a year-on-year increase of 18.98% [5] - The company’s phosphate ore resources are approximately 130 million tons, with a production of 2.2493 million tons in 2024, reflecting a year-on-year growth of 16.01% [7] Group 3: Market and Product Insights - The demand for industrial-grade monoammonium phosphate is expected to continue growing due to its applications in high-end water-soluble fertilizers and lithium iron phosphate precursor materials [5] - The company exports to around 50 countries, with the U.S. accounting for only 0.11% of total revenue, indicating minimal impact from tariffs [4] Group 4: Strategic Acquisitions - The company is in the process of acquiring 60% of Tianbao Company, a leading player in the feed-grade dicalcium phosphate industry, which will enhance its competitive edge [6] - The company secured a 10% stake in Tianmeng Mining, which includes the Xiaogou phosphate mine with an estimated resource of 401 million tons and a designed production capacity of 5.5 million tons per year [9] Group 5: Talent Management - The company emphasizes talent as a core competitive advantage and has implemented multiple equity incentive plans to attract and retain talent [9]