1. Report Industry Investment Rating - The investment rating for the coal mining industry is "Bullish" [2] 2. Core Viewpoints of the Report - Currently, the coal economy is at the beginning of a new upward cycle, with fundamental and policy factors in resonance. It is advisable to allocate the coal sector at low levels [11]. - The underlying investment logic of coal production capacity shortage remains unchanged. The coal price has established a bottom and its central level has reached a new platform. High - quality coal enterprises maintain their core asset attributes, and coal assets are still undervalued with potential for valuation improvement. The coal sector has both dividend characteristics and pro - cyclical elasticity [3]. - In the context of energy inflation, the pattern of tight coal supply and demand in the next 3 - 5 years remains unchanged. High - quality coal enterprises have high - barrier, high - cash, high - dividend, and high - dividend - yield attributes. After a short - term correction, the coal sector has shown high investment value [3]. 3. Summaries Based on Relevant Catalogs 3.1 This Week's Core Viewpoints and Key Concerns - **Core Viewpoints**: In the short - term, coal supply and demand are basically balanced, but there is a long - term gap. Coal prices are expected to rise further due to tight supply and upcoming seasonal demand. Coal assets are cost - effective, with high win - rate and high odds. The report continues to be bullish on coal and suggests allocation at low levels [11]. - **Key Concerns**: From January to October 2025, China's coal imports decreased by 11.0% year - on - year. From January to September 2025, coal and coking coal imports in India decreased by 1.0% year - on - year, and in Japan decreased by 2.3% year - on - year [13] 3.2 This Week's Performance of the Coal Sector and Individual Stocks - The coal sector rose 4.43% this week, outperforming the market. The Shanghai and Shenzhen 300 Index rose 0.82% [14]. - The thermal coal sector rose 4.60%, the coking coal sector rose 2.46%, and the coke sector rose 6.42% [15]. - The top three stocks in terms of gains and losses in the coal mining and washing sector were Huayang Co., Ltd. (11.50%), Jinkong Coal Industry (10.11%), and China National Coal Group Corporation (8.54%) [18] 3.3 Coal Price Tracking - **Coal Price Index**: As of November 7, the comprehensive transaction price of CCTD Qinhuangdao thermal coal (Q5500) was 703.0 yuan/ton, up 10.0 yuan/ton week - on - week. The comprehensive average price index of Bohai Rim thermal coal (Q5500) was 694.0 yuan/ton, up 9.0 yuan/ton week - on - week. The annual long - term contract price of CCTD Qinhuangdao thermal coal (Q5500) was 684.0 yuan/ton, up 8.0 yuan/ton month - on - month [23]. - **Thermal Coal Price**: As of November 8, the market price of Qinhuangdao Port thermal coal (Q5500) from Shanxi was 808 yuan/ton, up 40 yuan/ton week - on - week. International thermal coal FOB prices also increased [29]. - **Coking Coal Price**: As of November 7, the ex - warehouse price of primary coking coal from Shanxi at Jingtang Port was 1800 yuan/ton, up 60 yuan/ton week - on - week. The CIF price of Australian Peak View Mine hard coking coal in China was 212.3 US dollars/ton, up 0.6 US dollars/ton week - on - week [31]. - **Anthracite and Pulverized Coal Price**: As of November 7, the wagon - loading price of Jiaozuo anthracite was 1020.0 yuan/ton, unchanged week - on - week. The wagon - loading prices of pulverized coal in Changzhi Lucheng and Yangquan increased [39] 3.4 Coal Supply and Demand Tracking - **Coal Mine Capacity Utilization**: As of November 7, the capacity utilization rate of sample thermal coal mines was 91.1%, up 0.6 percentage points week - on - week, and that of sample coking coal mines was 83.76%, down 1.0 percentage points week - on - week [46]. - **Import Coal Price Difference**: As of November 7, the price difference between domestic and foreign 5000 - kcal thermal coal was - 79.1 yuan/ton, down 19.5 yuan/ton week - on - week; the price difference for 4000 - kcal thermal coal was - 75.2 yuan/ton, down 20.1 yuan/ton week - on - week [42]. - **Coal - fired Power Consumption and Inventory**: Inland 17 provinces' coal inventory increased, while daily consumption decreased. Coastal 8 provinces' coal inventory decreased, while daily consumption increased [45]. - **Downstream Metallurgical Demand**: As of November 7, the Myspic comprehensive steel price index decreased, the price of Tangshan - produced primary metallurgical coke increased, the blast furnace operating rate increased, and the profit per ton of coke in independent coking enterprises increased [64][65]. - **Downstream Chemical and Building Materials Demand**: As of November 7, the prices of urea in some regions decreased, the national methanol, ethylene glycol, and acetic acid price indices decreased, the synthetic ammonia price index increased, the cement price index increased slightly, the cement clinker capacity utilization rate decreased, the float glass operating rate decreased, and the weekly coal consumption in the chemical industry increased [70][74][76] 3.5 Coal Inventory Situation - **Thermal Coal Inventory**: As of November 7, the coal inventory at Qinhuangdao Port increased to 577.0 tons. The 55 - port thermal coal inventory decreased to 6148.7 tons as of October 31, and the production - area inventory decreased to 292.0 tons [91]. - **Coking Coal Inventory**: As of November 7, the production - area coking coal inventory increased to 165.6 tons, the six - port coking coal inventory increased to 304.3 tons, the coking enterprise inventory increased to 923.8 tons, and the steel mill inventory decreased to 787.3 tons [92]. - **Coke Inventory**: As of November 7, the total coke inventory of coking plants, four - port coke inventory, and the total coke inventory of domestic sample steel mills all decreased [94] 3.6 Coal Transportation Situation - **International and Domestic Coal Transportation**: As of November 7, the Baltic Dry Index (BDI) was 2104.0 points, up 138.0 points week - on - week. As of November 6, the average daily coal shipment volume of the Datong - Qinhuangdao Railway increased slightly week - on - week [108]. - **Ratio of Cargo to Ships at Four Ports in the Bohai Rim**: As of November 7, the inventory of four ports in the Bohai Rim was 1449.0 tons, the number of anchored ships was 106, and the cargo - to - ship ratio was 13.7, down 4.03 week - on - week [106] 3.7 Weather Conditions - As of November 7, the Three Gorges outflow was 10200 cubic meters per second, down 23.88% week - on - week. - In the next 10 days (November 9 - 18), there will be precipitation in some areas, with high - impact weather including cooling in Xinjiang and central - eastern regions. - In the next 11 - 14 days (November 19 - 22), there will be light precipitation in some areas, and the average temperature in some regions will be different from the normal level [113] 3.8 Listed Company Valuation Table and Key Announcements - **Listed Company Valuation Table**: The table provides the closing prices, net profits attributable to the parent company, EPS, and P/E ratios of key listed coal companies from 2024A to 2027E [114]. - **Key Announcements**: Companies such as Meijin Energy, China Shenhua, and Hengyuan Coal and Electricity have made announcements regarding project terminations, asset acquisitions, and corporate restructurings [115][116][118]

Investment Rating - The report maintains an "Accumulate" rating for the coal mining industry [1] Core Viewpoints - The port inventory is at a low level year-on-year, and coal prices have increased month-on-month. The average spot price of thermal coal at ports rose by 47 CNY/ton to 817 CNY/ton during the week of November 3 to November 7 [1] - The supply side shows a stable supply from production areas, with an increase in port supply. The average daily inflow to the four ports in the Bohai Rim was 1.9407 million tons, up by 35,000 tons week-on-week, an increase of 1.84% [1] - On the demand side, the average daily outflow from the four ports in the Bohai Rim decreased to 1.8601 million tons, down by 163,100 tons week-on-week, a decline of 8.06% [1] - The report anticipates that coal prices will maintain a fluctuating trend due to the upcoming cold winter and sufficient inventory levels [2] Summary by Sections 1. Weekly Market Review - The Shanghai Composite Index closed at 3,997.56 points, up 0.53% week-on-week. The coal sector index closed at 3,076.78 points, up 1.96% week-on-week [11] - The top five companies by weekly increase were Huayang Co. (+11.50%), Jinkong Coal Industry (+10.11%), Zhongmei Energy (+8.54%), Electric Power Investment Energy (+6.85%), and Shaanxi Coal Industry (+6.30%) [13] 2. Production and Pricing - The price of thermal coal in production areas has shown a steady increase. For instance, the price of 5500 kcal thermal coal in Datong rose by 63 CNY/ton to 685 CNY/ton [17] - The international thermal coal price index has also shown a stable increase, with the Newcastle coal price index rising by 2.49 USD/ton to 106.23 USD/ton [20] 3. Inventory and Shipping - The Bohai Rim's coal inventory increased to 23.63 million tons, up by 461,000 tons week-on-week, an increase of 1.99% [34] - The average shipping cost on domestic routes rose by 6.03 CNY/ton to 51.36 CNY/ton, an increase of 13.31% [36] 4. Recommendations - The report suggests focusing on resource stocks, particularly recommending Haohua Energy and Guanghui Energy as core targets due to their low valuations and elastic performance [39]

Core Viewpoint - The company, Shanmei International, is focusing on its core coal business and implementing four strategic initiatives to enhance its competitive edge and ensure sustainable development in the coal industry. Group 1: Company Performance - As of November 7, 2025, Shanmei International's stock price closed at 11.68 yuan, up 5.8% from the previous week [1] - The company's total market capitalization is 23.155 billion yuan, ranking 13th out of 30 in the coal mining sector and 838th out of 5166 in the A-share market [1] - The company achieved a coal import volume of 5.1831 million tons in the first three quarters of 2025 [2][4] Group 2: Strategic Focus - The company is committed to its core coal business and is focusing on four strategic areas: advanced capacity, resource expansion, premium coal production, and blending advantages [2][4] - Since the third quarter of 2025, the coal market has been recovering, leading to a significant improvement in the company's self-produced coal sales and a decrease in inventory [2][4] - The company is actively pursuing resource acquisition to increase coal reserves and extend service life, while closely monitoring policy changes and resource auction dynamics [2][5] Group 3: Financial Health - The company's long-term loans as of the third quarter of 2025 amounted to 6.101 billion yuan, with a debt ratio decreasing from 50.52% at the beginning of the year to 49.71% [4] - The company has not incurred any short-term loans since the beginning of 2025, indicating a focus on reducing debt levels [4] - There are currently no plans for a third-quarter dividend distribution [4]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the document. 2. Core Viewpoints of the Report - Interest rate bonds adjusted slightly this week, with the yields of 1Y, 3Y, 5Y, 7Y, and 10Y China Development Bank bonds rising by 3BP, 3BP, 5BP, 3BP, and 2BP respectively compared to last week. Credit bonds showed differentiated performance, with the yields of 1Y and 10Y credit bonds rising slightly, while those of 3Y, 5Y, and 7Y falling. Credit spreads of all grades narrowed, with the 3 - 7Y spreads compressing most significantly [2][5]. - The spreads of urban investment bonds mostly declined by 4 - 5BP. The credit spreads of external - rated AAA, AA +, and AA platforms decreased by 4BP, 5BP, and 5BP respectively compared to last week. Provincial - level platform spreads decreased by 4BP, and municipal - and district - level platform spreads decreased by 5BP [2][9]. - The spreads of industrial bonds declined overall, but the spreads of mixed - ownership and private real - estate bonds continued to rise. The spreads of central and state - owned enterprise real - estate bonds decreased by 2 - 4BP, while those of mixed - ownership and private real - estate bonds increased by 42BP and 15BP respectively. The spreads of coal, steel, and chemical bonds of various grades also declined [2][17]. - The yields of secondary - tier and perpetual bonds (two - types of bonds, "two - eternal bonds") rose across the board, performing weaker than ordinary credit bonds. The adjustment amplitude of medium - and high - grade varieties was higher, especially the spreads of 3 - 5Y perpetual bonds widened [2][26]. - The excess spreads of 3Y industrial perpetual bonds rose, and the excess spreads of urban investment bonds continued to differentiate. The excess spreads of industrial AAA 3Y perpetual bonds rose by 4.03BP to 16.17BP, and those of industrial 5Y perpetual bonds remained flat at 12.39BP. The excess spreads of urban investment AAA 3Y perpetual bonds rose by 2.39BP to 7.39BP, while those of urban investment AAA 5Y perpetual bonds decreased by 4.16BP to 9.14BP [2][31]. 3. Summary According to the Table of Contents 3.1 Interest rate bonds adjusted, and credit bonds showed differentiated performance, with the 3 - 7Y credit spreads narrowing significantly - Interest rate bonds adjusted slightly this week. The yields of 1Y, 3Y, 5Y, 7Y, and 10Y China Development Bank bonds rose by 3BP, 3BP, 5BP, 3BP, and 2BP respectively compared to last week [2][5]. - Credit bonds of different maturities showed differentiated performance. The yields of 1Y and 10Y credit bonds rose slightly, while those of 3Y, 5Y, and 7Y fell. The spreads of all grades narrowed, with the 3 - 7Y spreads compressing most significantly. In terms of rating spreads and term spreads, there were also different changes [5]. 3.2 The spreads of urban investment bonds declined by 4 - 5BP - The credit spreads of external - rated AAA, AA +, and AA urban investment platforms decreased by 4BP, 5BP, and 5BP respectively compared to last week. The spreads of most platforms declined by 3 - 7BP, with some exceptions [9]. - In terms of administrative levels, provincial - level platform spreads decreased by 4BP, and municipal - and district - level platform spreads decreased by 5BP. Most provincial - level platform spreads declined by 2 - 6BP, and most municipal - level platform spreads declined by 4 - 7BP, while most district - level platform spreads declined by 3 - 6BP [9][14]. 3.3 The spreads of industrial bonds declined overall, but the spreads of mixed - ownership and private real - estate bonds continued to rise - The spreads of central and state - owned enterprise real - estate bonds decreased by 2 - 4BP, while those of mixed - ownership and private real - estate bonds increased by 42BP and 15BP respectively. For example, the spreads of Longhu decreased by 3BP, and those of Midea Real Estate decreased by 2BP, while those of CIFI rose by 36BP, and those of Vanke rose by 145BP [17]. - The spreads of coal bonds of all grades declined by 4 - 5BP, the spreads of steel bonds of all grades declined by 2 - 4BP, the spreads of AAA - grade chemical bonds declined by 4BP, and those of AA + - grade chemical bonds declined by 5BP. For example, the spreads of Shaanxi Coal Industry decreased by 2BP, those of HBIS decreased by 4BP, and those of Jinkong Coal Industry decreased by 6BP [17]. 3.4 The two - eternal bonds adjusted across the board, performing weaker than ordinary credit bonds - The yields of two - eternal bonds rose across the board, performing weaker than ordinary credit bonds. The adjustment amplitude of medium - and high - grade varieties was higher, especially the spreads of 3 - 5Y perpetual bonds widened [26]. - Specifically, for 1Y bonds, the yields of all - grade secondary - tier capital bonds rose by 2 - 3BP, and the spreads remained flat; the yields of all - grade perpetual bonds rose by 2BP, and the spreads decreased by 1BP. For 3Y bonds, the yields of all - grade secondary - tier capital bonds rose by 3 - 4BP, and the spreads rose by 0 - 1BP; the yields of all - grade perpetual bonds rose by 3 - 5BP, and the spreads rose by 0 - 2BP. For 5Y bonds, the yields of all - grade secondary - tier capital bonds rose by 3 - 4BP, and the spreads decreased by 1 - 2BP; the yields of AA + and above - grade perpetual bonds rose by 6 - 7BP, and the spreads rose by 1 - 2BP, while the yields of AA - grade perpetual bonds rose by 2BP, and the spreads decreased by 3BP [28]. 3.5 The excess spreads of 3Y industrial perpetual bonds rose, and the excess spreads of urban investment bonds continued to differentiate - The excess spreads of industrial AAA 3Y perpetual bonds rose by 4.03BP to 16.17BP, reaching the 46% quantile since 2015, while the excess spreads of industrial 5Y perpetual bonds remained flat at 12.39BP, reaching the 26.93% quantile since 2015 [31]. - The excess spreads of urban investment AAA 3Y perpetual bonds rose by 2.39BP to 7.39BP, reaching the 12.25% quantile, while the excess spreads of urban investment AAA 5Y perpetual bonds decreased by 4.16BP to 9.14BP, reaching the 8.51% quantile [31]. 3.6 Explanation of the compilation of the credit spread database - The overall market credit spreads, the spreads of commercial bank two - eternal bonds, and the credit spreads of urban investment/industrial perpetual bonds are calculated based on the data of ChinaBond medium - and short - term notes and ChinaBond perpetual bonds. The historical quantiles are since the beginning of 2015. The credit spreads related to urban investment and industrial bonds are compiled and statistically analyzed by the R & D Center of Cinda Securities, and the historical quantiles are also since the beginning of 2015 [37]. - The credit spreads of industrial and urban investment individual bonds are calculated as the individual bond's ChinaBond valuation (exercise) minus the yield to maturity of the same - term China Development Bank bonds (calculated by the linear interpolation method), and finally the credit spreads of the industry or regional urban investment are obtained by the arithmetic average method [37]. - The excess spreads of bank secondary - tier capital bonds/perpetual bonds are calculated as the credit spreads of bank secondary - tier capital bonds/perpetual bonds minus the credit spreads of the same - grade and same - term bank ordinary bonds. The excess spreads of industrial/urban investment - type perpetual bonds are calculated as the credit spreads of industrial/urban investment - type perpetual bonds minus the credit spreads of the same - grade and same - term medium - term notes [37]. - Industrial and urban investment bonds both select medium - term notes and public - offering corporate bonds as samples, and guarantee bonds and perpetual bonds are excluded. If the remaining maturity of an individual bond is less than 0.5 years or more than 5 years, it is excluded from the statistical sample. Industrial and urban investment bonds are based on external entity ratings, while commercial banks use ChinaBond implied debt - item ratings [37].

Investment Rating - The report assigns an "Accumulate" rating for Huayang Co., Ltd. [4] Core Views - Huayang Co., Ltd. is positioned as a leading producer of anthracite coal, with a strong focus on expanding into renewable energy sectors. The company has a solid foundation in coal mining, with a total production capacity of 40.9 million tons per year and a strategic shift towards solar and energy storage solutions [6][7][8]. Summary by Sections Company Overview - Huayang Co., Ltd. is a state-owned enterprise in Shanxi Province, primarily engaged in coal mining, electricity generation, and renewable energy. The company has a total share capital of 3,607.5 million shares and a market capitalization of approximately 32,178.9 million yuan [4][14]. Coal Production and Growth - The company has nine operational mines with a total approved production capacity of 40.9 million tons per year, primarily focusing on the production of high-value anthracite coal, which constitutes over 90% of its coal resources. The company is set to increase its production capacity significantly through the completion of several mining projects and acquisitions [6][8][32][33]. - In 2024, the company will see an increase in production capacity from its Ping Shu and Yu Shu Po mines, with a total capacity increase of 1 million tons per year expected from the Qiyuan and Bolin mines [8][32][35]. Electricity and Renewable Energy - The electricity generation segment is expected to grow significantly due to the commissioning of the Xishangzhuang project, which will increase the company's annual electricity output from approximately 1 billion kWh to 5.864 billion kWh in 2024. The company is also focusing on developing its renewable energy business, including solar and sodium-ion battery technologies [6][39][49]. - The company has initiated a sodium-ion battery project, which is expected to produce 20,000 tons of positive electrode materials and 12,000 tons of negative electrode materials annually once fully operational [49][51]. Financial Projections - The report forecasts that Huayang Co., Ltd. will achieve revenues of 238.87 billion yuan in 2025, with a projected growth rate of -5% for that year, followed by growth rates of 13% and 9% in 2026 and 2027, respectively. The net profit attributable to shareholders is expected to be 16.74 billion yuan in 2025, with a corresponding P/E ratio of 19.2x [11][41].

Group 1: Lithium Mining Update - The mining rights evaluation report for the Jiangxi province's lithium mine indicates an assessed value of 246.62 million yuan for the available lithium resources, which exceeds the market benchmark price of 69.30 million yuan [2][3]. - The cumulative utilized resource amount from February 2022 to August 2025 is 25.86 million tons, with a lithium oxide content of 85,100 tons and an average grade of 0.33% [3]. - The mining recovery rate is reported at 98.4%, with a product plan for lithium mica concentrate, which has a non-tax selling price of 1,347 yuan per ton [3]. Group 2: Coal Market Insights - Coal mine production is currently at a low level, with a shift from quantity-driven production to safety-focused operations, resulting in a lower operating rate compared to earlier in the year [5]. - Coal inventories are low, with some pre-sold orders extending into mid-November, indicating that coal mines are unlikely to accumulate stock in November [6]. - The overall coal market is experiencing a tight balance, with current conditions favoring a strong spot market due to reduced supply and increased downstream purchasing [7]. Group 3: Copper Market Analysis - Copper prices are driven by three main factors: the commodity currency logic due to global monetary challenges, structural supply shortages from policy and production cuts, and significant demand increases from emerging technologies [8][9]. - Recent price corrections are attributed to tightening global dollar liquidity and rising U.S. Treasury yields, which have impacted risk assets [9]. - The medium to long-term copper supply-demand gap is predictable, with macroeconomic factors being the largest variable influencing prices [10]. Group 4: Jujube Market Trends - The jujube futures market has been under pressure due to expectations of abundant supply in 2024, leading to a downward price trend [11][12]. - The market is currently experiencing a supply-demand tug-of-war, with high inventory levels impacting futures prices while spot prices remain relatively stable due to production cuts [12]. - Key factors to monitor include terminal consumption performance and the speed of inventory reduction, which will influence future price stability [13]. Group 5: Methanol Market Outlook - The methanol market faces challenges with cost support from strong coal fundamentals, but demand is expected to decline due to reduced activity in the eastern olefins sector [15][16]. - The potential for a spring recovery in methanol prices hinges on market dynamics, including cost levels and demand from factories and traders [16][18]. - The market is currently in a cautious phase, with expectations of a gradual recovery if favorable conditions arise [17]. Group 6: Iron Ore Supply Dynamics - The upcoming production from the West Simandou iron ore project is expected to lead to a more relaxed supply situation in the medium to long term, despite ongoing demand from rapidly developing economies [21][22]. - The iron ore market is anticipated to remain strong in the first quarter of 2026, but may weaken as supply increases later in the year [21]. - Strategic positioning in the iron ore market should consider potential price fluctuations based on macroeconomic conditions and supply-demand changes [23].

Core Viewpoint - The announcement provides key operational data for Shaanxi Coal and Chemical Industry Co., Ltd. for October 2025, ensuring the accuracy and completeness of the information presented [1]. Group 1 - The operational data is derived from the company's internal statistics and may differ from the data disclosed in regular reports [2]. - The announcement serves to inform investors about the company's production and operational status without making predictions or commitments regarding future performance [2].

Group 1: Report Summary - This week, coking coal and coke showed relative resilience in the black steel industry chain, maintaining a sideways oscillation. The macro - level disturbances eased, and the market gradually returned to trading based on its own fundamentals. The strong performance of coking coal was mainly driven by the rising price of thermal coal, reduced inventory pressure on mining enterprises, limited supply increase, and the expectation of winter storage, which released price elasticity. However, the decline in steel mill profitability and hot metal production restricted the upward space of coking coal prices. The short - term futures market is expected to maintain a slightly bullish oscillating trend, and attention should be paid to the rhythm and intensity of downstream winter storage. As hot metal production gradually declined, coke consumption decreased, but production also dropped, resulting in a relatively balanced supply - demand pattern. The third round of coke price hikes has been implemented, slightly improving the loss of coke enterprises, but they are still in the loss range, and the fourth round of price hikes has been initiated. High furnace material prices have continuously reduced steel mill profitability, intensifying the game between steel and coke enterprises. Steel mills will resist price hikes more strongly, limiting the profit space of coke enterprises. The subsequent price hike space of coke depends on the upward range of coking coal, and the futures market fluctuates with coking coal [6]. - As of November 4, the capital availability rate of sample construction sites was 59.82%, a week - on - week increase of 0.12 percentage points. The capital availability rate of non - housing construction projects was 61.22%, a week - on - week increase of 0.07 percentage points, and that of housing construction projects was 53.19%, a week - on - week increase of 0.38 percentage points. Since November 10, 2025, China has suspended the 15% additional tariff on imported coking coal from the United States, and the import tariff has dropped to 13%. Thailand has launched an anti - circumvention investigation into hot - rolled steel plates from China [7]. - Domestic coking coal supply has slightly shrunk. Upstream coking coal inventory has slightly increased, but the pressure is not significant. Independent coke enterprises have slightly replenished coking coal, while steel mills have maintained just - in - time procurement. Coke production has slightly decreased. Hot metal production has declined, leading to lower coke consumption. The third round of price hikes has been implemented, slightly improving the loss situation [7]. Group 2: Bull - Bear Focus - Bullish factors include low inventory pressure of coking coal, strong performance of thermal coal prices, and the expectation of industry winter storage. Bearish factors are the weakening profitability of steel mills, low willingness to replenish raw material inventory, and the decline in hot metal production due to environmental protection factors [10]. Group 3: Data Analysis - As of the week of November 7, the operating rate of 523 sample mines was 83.76%, a month - on - month decrease of 1.02%, and the daily average output was 73.83 tons, a decrease of 2.01 tons. The operating rate of 314 sample coal washing plants was 37.61%, a month - on - month increase of 1.15%, and the daily average output was 27.53 tons, an increase of 1.01 tons. As of the week of November 1, the customs clearance volume of Mongolian coal at the Ganqimaodu Port rebounded but was slightly lower than the same period last year. Overall, the supply of coking coal has limited room for increase [13]. - As of the week of November 7, the clean coal inventory of 523 sample mines was 165.59 tons, an increase of 1.06 tons; the clean coal inventory of 314 sample coal washing plants was 294.97 tons, an increase of 10.55 tons; and the port coking coal inventory was 304.27 tons, an increase of 14.12 tons. The downstream replenishment rhythm of coking coal has slowed down, and the inventory depletion rate has decreased, resulting in a slight increase in weekly inventory, but the mine inventory pressure has been significantly reduced [15]. - As of November 7, the coking coal inventory of all - sample independent coke enterprises was 1070.02 tons, an increase of 17.54 tons. The available inventory days were 12.65 days, an increase of 0.4 days compared with the previous period. The coke inventory of independent coke enterprises was 58.3 tons, a decrease of 1.57 tons. This week, the production and sales of independent coke enterprises were relatively balanced, inventory decreased, and the willingness to replenish coking coal remained, but the replenishment amplitude was narrower than before [18]. - As of November 7, the coking coal inventory of 247 steel enterprises was 787.3 tons, a decrease of 9.02 tons. The available inventory days were 12.84 days, a decrease of 0.12 days compared with the previous period. The coke inventory was 626.64 tons, a decrease of 2.41 tons compared with the previous period, and the available days were 11.07 days, a decrease of 0.5 days. Recently, the profitability of steel mills has continuously declined, and the willingness to replenish raw materials is weak, mainly for just - in - time procurement [22]. - As of November 7, the capacity utilization rate of all - sample independent coke enterprises was 72.31%, a decrease of 1.13% compared with the previous period, and the daily average output of metallurgical coke was 63.59 tons, a decrease of 1 ton compared with the previous period. The capacity utilization rate of 247 steel enterprises was 84.99%, a decrease of 0.22% compared with the previous period, and the daily average coke output was 46.09 tons, a decrease of 0.12 tons compared with the previous period. As downstream consumption weakened, coke production also decreased, resulting in a relatively balanced supply - demand pattern [24]. - As of the week of November 7, China's coke consumption was 105.4 tons, a decrease of 0.96 tons. From the data of 247 steel enterprises, the daily average hot metal output was 234.22 tons, a decrease of 2.14 tons. Recently, hot metal production has gradually declined, and coke consumption has also decreased, but it is still in a relatively high range [26]. - As of November 7, the average profit per ton of coke for independent coke enterprises was a loss of 22 yuan/ton. The third round of price hikes has been implemented, slightly improving the loss. However, high raw material prices have continuously reduced steel mill profitability. As of November 7, the profitability of 247 steel enterprises was 39.83%, a further decrease of 5.19% compared with the previous period. The decline in steel mill profitability will intensify the game between steel and coke enterprises, and steel mills will resist price hikes more strongly, delaying the implementation of the next price hike or reducing the possibility of implementation, thus limiting the profit space of coke enterprises [28]. - The spot and futures prices of coking coal and coke maintained a slightly bullish oscillating trend [30]. Group 4: Market Outlook - The strong performance of coking coal is mainly driven by the rising price of thermal coal, reduced inventory pressure on mining enterprises, limited supply increase, and the expectation of winter storage, which releases price elasticity. However, the decline in steel mill profitability and hot metal production restricts the upward space of coking coal prices. The short - term futures market is expected to maintain a slightly bullish oscillating trend, and attention should be paid to the rhythm and intensity of downstream winter storage [33]. - As hot metal production gradually declines, coke consumption decreases, but production also drops, resulting in a relatively balanced supply - demand pattern. The third round of coke price hikes has been implemented, slightly improving the loss of coke enterprises, but they are still in the loss range, and the fourth round of price hikes has been initiated. High furnace material prices have continuously reduced steel mill profitability, intensifying the game between steel and coke enterprises. Steel mills will resist price hikes more strongly, limiting the profit space of coke enterprises. The subsequent price hike space of coke depends on the upward range of coking coal, and the futures market fluctuates with coking coal [36].

Investment Rating - The report rates the coal industry as "Positive" [1] Core Insights - The coal industry faces dual pressures of green transformation and safety production as ESG disclosure becomes mandatory by 2025 [4] - A tailored ESG evaluation system for coal enterprises is proposed, focusing on "green mining," "safety production," and "smart management" [4] - The evaluation system includes 4 categories of positive indicators and 1 category of negative indicators, totaling 23 primary indicators and 59 secondary indicators, with a maximum score of 100 [4] Summary by Sections 1. Coal Central Enterprises ESG Policies: Green Transformation in a Critical Phase - The coal industry is a pillar of national energy security and economic development, facing pressures to ensure energy security while promoting low-carbon transformation [9][10] - Recent policies emphasize high-quality development in the coal sector, focusing on green, safe, intelligent, and efficient growth paths [10] 2. Building the ESG Evaluation System for Coal Central Enterprises: Balancing Green and Safety - The ESG evaluation system is based on general indicators and tailored to the coal industry's characteristics, with 4 categories of positive indicators and 1 negative indicator [14] - The system includes general, environmental, social, and governance indicators, with a total of 22 primary indicators and 56 secondary indicators [14] - Environmental indicators focus on carbon reduction and include new metrics for "green mining and ecological restoration" [15][17] - Social indicators assess the coal enterprises' contributions to social development, with a new focus on "energy supply responsibility" [18][19] - Governance indicators emphasize safety production and smart management, with new metrics for "safety production governance" and "dividend mechanisms" [20][21] 3. Detailed ESG Evaluation Framework - The evaluation framework includes specific scoring for each indicator, ensuring a comprehensive assessment of ESG performance [28][29] - Positive indicators cover various aspects, including energy consumption, greenhouse gas emissions, pollution prevention, and community engagement [28] - Negative indicators focus on violations and penalties, with a scoring system that deducts points for each infraction [24][29]

Core Viewpoint - The company,嘉友国际, has signed a supplementary long-term cooperation agreement with Mongolian Mining Corporation, which will result in the sale of an additional 2.5 million tons of coking coal products from 2026 to 2030, potentially positively impacting the company's financial status and operational results [1] Group 1 - The supplementary agreement extends the existing long-term cooperation with MMC and its affiliates [1] - The total volume of coking coal products to be sold under the new agreement is 2.5 million tons [1] - The implementation of this agreement is expected to have a positive effect on the company's future financial condition and operational performance, although the specific impact will depend on subsequent business execution [1]