Investment Rating - The investment rating for the company is maintained at "Outperform" [1] Core Views - The company's performance in H1 2025 was pressured by a significant drop in coke prices, with a revenue of 8.25 billion yuan, down 6.5% year-on-year. The net profit attributable to shareholders was -667 million yuan, although it showed an increase of 8.8 million yuan compared to the previous year [1] - The report highlights the focus on improving coal and coke operations and the steady progress in hydrogen energy initiatives, which are expected to enhance future profitability [1][3] Summary by Relevant Sections Financial Performance - In H1 2025, the company achieved an operating income of 8.25 billion yuan, a decrease of 6.5% year-on-year. The net profit attributable to shareholders was -667 million yuan, an increase of 8.8 million yuan year-on-year. The net profit after deducting non-recurring items was -680 million yuan, an increase of 14.67 million yuan year-on-year [1] - For Q2 2025, the company reported an operating income of 4.26 billion yuan, a quarter-on-quarter increase of 7%. The net profit attributable to shareholders was -320 million yuan, a quarter-on-quarter increase of 43.37 million yuan [1] Production and Sales - The company has a coal production capacity of 6.3 million tons per year, with a coal output of 1.7937 million tons in H1 2025, up 31.8% year-on-year. The coke production capacity is 10.95 million tons per year, with a total coke output of 3.756 million tons in H1 2025, up 26.5% year-on-year [2] - The revenue from coal and coke products and by-products was 8.03 billion yuan in H1 2025, down 2.7% year-on-year, while the gross profit was 190 million yuan, up 58.6% year-on-year, with a gross margin of 2.4%, an increase of 0.9 percentage points year-on-year [2] Hydrogen Energy Initiatives - The hydrogen energy segment has secured nearly 300 million yuan in super orders, and the construction of hydrogen refueling networks is progressing steadily, indicating a shift from the investment phase to the realization phase [3] - The company plans to complete the second phase of its Guizhou project within 2025, which will significantly enhance its coke production capacity and lower costs, thereby strengthening its competitive position in the industry [3] Valuation and Future Outlook - The profit forecasts for 2025-2027 have been adjusted, with expected net profits of -652 million yuan, 141 million yuan, and 410 million yuan respectively. The EPS for these years is projected to be -0.15, 0.03, and 0.09 yuan [1][4] - The report anticipates that the company's ongoing projects and hydrogen energy developments will catalyze a revaluation of its stock, especially with the planned H-share listing [3]