Core Viewpoint - The company reported a significant loss in the first half of 2025, primarily due to the termination of operations in certain coal mines in Shanxi and foreign exchange losses, but plans to divest non-performing assets to improve financial health and focus on Indonesian coal mining operations [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved operating revenue of 1.089 billion yuan, an increase of 596 million yuan year-on-year, but reported a net loss of 163 million yuan compared to a profit of 60.8 million yuan in the same period last year [1]. - The loss was mainly attributed to the termination of operations in certain Shanxi mines, which resulted in a loss of 194 million yuan, while continuing operations generated a profit of 31 million yuan [1]. - Foreign exchange losses due to the depreciation of the Indonesian rupiah against the yuan and US dollar amounted to approximately 70.8 million yuan [1]. Group 2: Asset Divestiture and Strategy - On June 5, the company announced the sale of 100% equity in Perpetual Goodluck Limited to its controlling shareholder for 30 million yuan, which includes five coal mines in Shanxi [1]. - The divestiture is expected to yield approximately 196 million yuan in gains, as the target company's net assets were negative 169 million yuan, thus removing liabilities from the balance sheet [1]. - The company aims to optimize financial metrics by eliminating losses from the terminated business and will focus on developing its Indonesian coal mines [1]. Group 3: Indonesian Operations and Growth - As of June 30, 2025, the company acquired 100% equity in WM for approximately 61.273 million yuan, which holds a 15% coal sales interest in the SDE mine, and 100% equity in TBM for about 48.58 million yuan, which owns 70% of the TSE mine [2]. - The company also acquired 100% equity in TMI for approximately 24.2 million yuan, which holds a 30% stake in the TSE mine, further increasing its production capacity and profitability [2]. - SDE coal mine's raw coal production reached 2.05 million tons in H1 2025, a significant increase from 755,000 tons in the same period last year, with plans for further capacity expansion [2]. Group 4: Future Outlook - The company expects to recover its performance in the second half of 2025 and anticipates significant contributions from the SDE Phase II project in 2026 [3]. - Projected net profits for 2025-2027 are estimated at 160 million yuan, 680 million yuan, and 1.15 billion yuan, with corresponding price-to-earnings ratios of 36.2X, 8.3X, and 4.9X [3].