Yankuang Energy Group Company Limited

So may we invite Mr. Chairman. Respected analysts, investors, friends, ladies and gentlemen, good morning. First of all, on behalf of Yanguang Energy, I express gratitude Our heartfelt welcome to all of you who are here and a big thanks to all of you for the long-term care and understanding and support to the company. In the first half of the year, the world has experienced very complicated economic situations. The energy industry has accelerated its reform. Facing such challenges, our company continues to focus to address and also to optimize our capacity and operation as well as lean management based on science, based on researches and based on market targeted measures and we were successful in addressing these challenges. Our production The first part would be the review of our performance. As far as our commodity coal is concerned, we have produced 69.08 million tons. That's a year-on-year increase of 19.85 million tons. And that is in line with our target for the first year. And our chemical products production was 4.18 million tons. That's an increase of 460,000 tons. This is a historic high. Our sales revenue, 62.2 million. That's a decline of 3.2 billion or 5%. And our net income, our net profit has Our operating cash ratio is $15.5 billion. This is a very good address to the external challenges. It also tells about our accurate judgment regarding the market as well as our internal efforts to lower our cost to increase the Thank you, Mr. President. With various wells and various measures, we have been able to release such maximum capacity. With the Shanmung mine, we have 21.4 million of capacity. That's an increase of 2.26 million. And the same applies for the Australian mines. Our production has continued to increase at 19.67 million tons. That's a year-on-year increase of 2.74 million tons. And with the Lucy mines, it has been increasing its capacity and is a contributor of 15.56 million tons. With our main mines being very effective, They have played a main role in achieving this objective. And the chemical industries, we have been able to grab the good opportunity of prices increasing. And also, we were able to push forth effective, lean, and adaptive policies. And that has given us opportunities 1.1 billion more of revenue at 125 billion yuan. And third is that we have been able to cut our costs and control our costs very effectively. We have been effective in cutting such costs under very stringent conditions. We went for low waste, control of costs, control of financial costs, and also procurement cost. So we have been able to push forth this cut in cost in eight major areas. So we have been able to rebuild a very healthy inventory and we also enhance on our human resources management and our per ton cost is at 365 yuan. That's a year-on-year improvement and many more. As far as chemical product is concerned, we have been able to increase our production and the methanol unit sales cost is at 1532 yuan per ton. That's a year-end decline of 17.8% and with acetate acid, the cost was at 2343 yuan per ton. That's also an improvement of We have been able to manage our loans to lower our financial costs. It has come down to 3.2%, which is a historic low. And we have actually saved a total of 260 million. And we have capitalized from X share, 4.5 billion yuan. and we have also been able to stabilize our price in terms of negotiation skills and our sales strategies so we have been able to enhance on high value customers and at an average price per ton of 667.6 so this price The President The President The President The President Subtitles by the Amara.org community and the Chaoshiyao Polybendum Mine, we had already finished the exploration product and we are expediting with the application procedures. With Galutu Mine, the exploration procedures had been completed for the first stage. And with high-end chemical new material industry, we had Translation and subtitles by the Amara.org community As far as mine operation is concerned, we are moving towards intelligent and green direction and we had built 21 pairs of national intelligent demonstration standard mines with a 94% of intelligent mining. and we also had been able to apply the 5.5 meters to over 8 meters high mining phase self-adaptive technology and were able to receive for such technology the National Science and Technology Progress Award. And we had been promoting green technologies and also were able to enhance our capacity by 1.98 million tons. As far as chemical product industry is concerned, we have been able to extend our value chain. With the Lunan chemical project, we have been able to use the 3,000 tons, which is the world's largest OBM multi-jessel equipment. We also had been able to build high-end, zero carbon emission and intelligent The first six projects had been able to go on to start and we had been able to research the world's largest 12,000 tons crusher. Now with our cluster in intelligent logistics that had already been expanding We were able to expand our capacity and to connect between more freight owners as well as customers and we were able to build ourselves as an integrated service provider in the international logistics market. So we were able to build a physical logistics plus platform through the acquisition of and the Wupo Technology Logistics Company. And we have been able to promote our capacity and to connect the West and East so that coal from the West can be used in the East. As far as new energy industry that had been increasing steadily, We had been meeting our targets and building new projects. We had been able to win the bid for the 180,000 kilowatts on land wind farm project. And our other projects in the Inner Mongolia and Shandong provinces also proceeding, especially with the Coal Mining Subsistence Area Wetland Service Photovoltaic Project. And we have been enhancing the return for our customers via dividends payout. We have decided for interim dividend in 2024 to be 0.23 yuan per share. We are returning Our shareholders with hot cash. And we also had issued a placement of 300 million dollars, 300 million yuan in order to show our confidence with the company and our connection with the shareholders. And we also had a plan for 2024 to increase The second part of my presentation would be about major market analysis. For the cold market in the first half, the supply was relaxed and the import was high. and also it was impacted by hydroelectricity. Therefore, the coal market had been fluctuating. Therefore, for the next half of the year, we anticipate that the coal price would be rather high and the fluctuation would narrow. And because of some of the growth measures and the coal as a fundamental element of the energy structure would continue to be demanded. Going forward, we think that this demand would relax a bit. International coal market influenced by India, Southeast Asia, and the increase in demand in these countries, the supply is relaxed, however. We believe that consumption would remain high. As far as chemical is concerned, in the first half of the year, the demand had improved and supply has also been relaxed. Therefore, there had been a small increase in price. With the next half, with methanol and acetic acid, these fundamental products had It has been influenced by the incoming import prices and the price would continue to remain at a rather high point. And thirdly, operating measures. The energy industry has been going into reform in a very deep and broad way and competition has been increasing. Thank you, Mr. President. and go for efficiency and profit while safeguarding safety, we would lower our cost, we will grab some major projects and enhance our capacity. So our strategy is to ensure that our core industries are doing well and to enhance the industry chain so that we can be stronger and better. The first point is to continue to support the core mining industry to enhance on our capacity building and also to focus on those industries that we are good at and to ensure that the projects can meet the target. As far as July and August is concerned, these targets have been met. Our capacity was high. We will continue to make sure that this will continue. And year on year, our capacity for coal had increased by 30 million tons, of which the Lusi Kuang Yeh and the Xinjiang Nanhua had increased by 22 million tons. The Shanmeng mines have increased by 5 million tons. With our Australian mines, it had increased by 4 million tons. and secondly, we will continue to push for new projects so that Wanfu mine could be operational by end of 2024. No. 4 Wu Cai Wan open pit, we target to finish its building by the end of 2024 and also to divest Jianmei in 2025 and to try with the Huolinghe No. 1 mine to finish building in 2024. And also with Chao Siyao and Liushan Gedan mines, as well as the Galutu mines, we will expedite our procedures. Our target is to, within three years, have all of these projects become operating and to contribute an additional 45 million tons of capacity. We would also go for synergies between resources and capital, and also to get good quality coal and electricity resources to expand our business. And secondly, with the high-end chemical new material, we will continue to strengthen this industry. This chain and to enhance the composition of high value add products and also to enhance our capacity and competitiveness so that our annual production can have a breakthrough of 8 million tons and we will continue to push for the integrated new material, new energy and Project in Lunan Huagong so that it can go into operation by this year end. And we will continue to enhance our competitiveness by nurturing new industries so that we can enjoy from such synergies. With high-end equipment manufacturing industries, we will We will continue to build the project similar to the Germany SMT Schott AG project and also to build a very modern physical plus platform model for our intelligent logistics industry to integrate Lucy Xinjiang as well as the other main rail lines to enhance the deployment of logistics point. to connect the Grand Canal and the Yangtze River main projects and also with the Taian Port Transportation Logistics Phase 2 project, the Sihe Port project. Altogether, we anticipate that the overall 2025 capacity to reach beyond 500 million tons. and with new energy, we continue to push our projects in Xinjiang and Inner Mongolia. And thirdly, is to enhance our lean management and improve our efficiency. In eight different measures, we would ensure that control, there's effective control of production cost in management cost So that production cost can come down by 3% to 5% per ton. And also as far as management cost is concerned, we will focus on six areas of management to enhance our human resources and to keep a lean and mean team. And we will continue to lower the cost of our capital to enhance the management, The President The President So this will give us a very good foundation for further development. We will also optimize our sales strategy in terms of our geographic location, our products customers as well as the flow of our products. We will strike for a 250 million yuan of increase in sales. and we will continue to push for the metallurgy, the cooking coal and the PCL coal market and also we will also use localization strategy and other measures like social storage in order to cut down our cost to and many more. So ladies and gentlemen, we have accumulated 20 years of rich experience. We are highly confident about meeting our goals for the year. In facing challenges, those who strive would win and we will keep our relentless focus and commitment to deliver on our development strategy and our targets both internally and externally. We also would push for capital operation as well as manufacturing operation in order to create stable and long-term company value so that in the ever-changing world ahead, We will continue to create the best returns for our shareholders and other state owners. Thank you.