Core Viewpoint - The company, Blue Flame Holdings, has achieved steady operational performance in the first half of 2025, focusing on coalbed methane production in alignment with national "dual carbon" goals, and has been recognized as a "Double Hundred Enterprise" for three consecutive years by the State-owned Assets Supervision and Administration Commission [1][6]. Group 1: Financial Performance - In the first half of 2025, the company sold 615 million cubic meters of coalbed methane, generating revenue of 1.111 billion yuan, with a net profit attributable to shareholders of 234 million yuan, reflecting a year-on-year growth of 5.07% [1]. - The net cash flow from operating activities reached 644 million yuan, a significant increase of 130.60% year-on-year, primarily due to government subsidies and efficient collection of receivables [1][7]. Group 2: Resource and Production Capacity - The company has established a three-dimensional strategy focusing on stabilizing production from existing wells, expanding new wells, and deep exploration to ensure coalbed methane supply [2]. - As of June 2025, the company holds 23 coalbed methane mining rights covering over 2,500 square kilometers, with proven geological reserves of 53.191 billion cubic meters [3]. - The company has completed drilling 72 new wells and put 51 into operation during the reporting period, contributing to sales growth [2]. Group 3: Technological Innovation - Blue Flame Holdings has developed three core technological systems for coalbed methane extraction, enhancing its competitive edge in the industry [4]. - The company has undertaken 37 major scientific projects at the provincial and national levels, achieving breakthroughs in several technical challenges [4]. Group 4: Digital Transformation - The company is advancing its digital transformation through the "Smart Gas Field" project, having installed 181 intelligent extraction devices to monitor and optimize production processes [5]. Group 5: Management and Social Responsibility - The company has implemented a refined management approach, focusing on dynamic monitoring of key operational indicators and cost control, resulting in improved financial health and operational efficiency [7]. - Blue Flame Holdings actively engages in social responsibility initiatives, supporting rural revitalization and poverty alleviation efforts in local communities [8].

Summary of Key Points Core Viewpoint The report outlines the fundraising and usage status of Shanxi Blue Flame Holdings Co., Ltd. for the first half of 2025, detailing the total amount raised, expenditures, and the management of the funds. Group 1: Fundraising Overview - The company raised a total of RMB 1,317,109,998.30 through a private placement of 190,885,507 shares at RMB 6.90 per share, with a net amount of RMB 1,298,011,903.32 after deducting issuance costs [1][2] - As of the beginning of the reporting period, the company had utilized RMB 1,243,222,067.78 of the raised funds for various projects, including cash compensation for major asset swaps and equipment purchases [2][3] Group 2: Fund Usage Details - During the reporting period, the company used RMB 8,628,496.00 for the purchase of fracturing and drilling equipment, with net bank interest income of RMB 287,522.21 [2][3] - By the end of the reporting period, the total amount used from the raised funds reached RMB 1,251,850,563.78, with remaining funds of RMB 86,822,564.04 in the special account [3][4] Group 3: Fund Management - The company has established a strict fund management system in compliance with relevant regulations, ensuring that the funds are stored in dedicated accounts and used only for specified projects [4][5] - The company has two special accounts for fundraising, and all funds are managed according to the established protocols [5][6] Group 4: Project Implementation - The projects funded by the raised capital, including the construction of 33 L-type wells and the purchase of drilling equipment, have been completed, with no changes in project location or method [6][7] - The company plans to permanently supplement its working capital with any remaining funds after project completion [12] Group 5: Financial Performance - The company reported a sales volume of 615 million cubic meters of coalbed methane, generating revenue of RMB 1.111 billion, with a net profit attributable to shareholders of RMB 234 million during the reporting period [25][26]