Yankuang Energy Group Company Limited

We will now invite our Chairman to start the presentation. Ladies and gentlemen, new and old friends, good morning. On behalf of Yan Kuang Energy, I would like to extend a warm welcome to all investors and friends attending this meeting and express my heartfelt gratitude for your long-term care and support for the group. In 2025, facing severe challenges such as a complex economic situation, the accelerated construction of a new energy system, and cyclical fluctuations in the coal industry, the group overcame difficulties and responded calmly. We persisted in increasing production and expanding output to consolidate foundation, implemented lean management to reduce cost and control expenses, and accelerated project construction to build momentum, empowered efficiency through capital operation. As a result, the group achieved leapfrog growth in production capacity and resource reserves, firmly stabilizing our basic production and operation in a complex situation. Overall, we showed a good trend of steady improvement in operation and management, and continuous enhancement of development potential. The following is a detailed report in four parts. One, our 2025 operations. Then performance overview. According to international financial reporting standards, the key operating indicators are as follows. Saleable coal production reached 182 million tonnes, setting a new historical high. This was driven by the high yield and efficiency of the Shanxi Inner Mongolia Bays and the Australian Bays, as well as the acquisition of Seabay Mining, resulting in a net increase of 40 million tonnes compared to 2024. Chemical production reached 9.77 million tonnes, up 760,000 tonnes or 8.46% year-on-year. 3. Sales revenue, $133.34 billion, a decrease of $7.8 billion year-on-year. Net income, RMB8.52 billion, down RMB6.07 billion year-on-year. Total assets, RMB451.97 billion. Shareholders' equity, RMB71.3 billion. Return on net assets, 11.96%. Six. Cash balance at the end of the period was RMB26.68 billion, which can fully guarantee the needs of subsequent project investment, shareholder returns and capex. Seven. Annual dividend declared of 0.5 yuan per share, adhering to the philosophy of shareholders' first value sharing. Following the interim dividend of 0.18 per share, the company plans to implement a final dividend of 0.32 per share, bringing the total dividend payout for the year to 5.02 billion. Thank you very much. Mining. Optimized layout, expand volume and stabilize efficiency. The strategy of stabilizing production within the province, expanding production outside the province, optimizing overseas production was further implemented. Production at Shandong and Xinjiang bases remained stable and the Wanfu coal mine reaching full capacity immediately upon commencement of production. And Wucaiwan No. 4 open pit mine officially commenced trial operation. The Shanxi Inner Mongolian base reached full production capacity and efficiency. with marketable or saleable coal output 46.66 million tonnes, up 3.54 million tonnes year-on-year, contributing 56% of profit and becoming the most crucial area for production growth and profit growth. M&A of Seabay Mining yielded significant results, contributing 33.81 million tonnes of saleable coal output. Australian production bays continue to optimise operation with marketable or saleable coal production reaching 44.02 million tonnes, up 1.72 million tons year-on-year, setting a new record. Two breakthroughs in key projects. We remain steadfast in our established plans, accelerate implementation of landmark and leading major projects, and solidify foundation for continued development. Key projects in Inner Mongolia are being implemented at accelerated pace. The civil engineering work for the Youfang Haokong mine is basically complete. Liu Sang, Ge Dan Coal Mine and Huo Lianhe No. 1 Coal Mine obtained mining licenses for annual production of 10 million tons and 7 million tons respectively. Galutu Coal Mine plans to increase annual production capacity to 8 million tons. Xinghe Molybdenum Industries' Cao Xitian Molybdenum Mine was issued an electronic mining license certificate for annual production scale of 16.5 million tons. Key projects in Shaanxi, Gansu region are progressing smoothly. Yangtia Ping Coal Mine has commenced construction successfully. Ma Fu Chuan Coal Mine and Mao Jia Chuan Coal Mine have both obtained mining licenses and preliminary design approvals for annual output of 5 million tons. Three scientific and technological innovation demonstration and leadership. The innovative and promoted dense filling new type of forward-moving fully mechanized mining method was included in the new addition of the coal mine safety regulations, opening up a new path for green and efficient mining. Intelligent construction accelerated with Pangu Mine large-scale model being applied in multiple scenarios and the Fuxi Chemical large-scale model being put into operation in several chemical enterprises. We successfully hosted the National Coal Mine Rock Burst Prevention and Control Experience Exchange Conference and the 13th National Mine Rescue Skills Competition Setting Industry Benchmark in Major Disaster Prevention and Emergency Rescue. High-end chemical new materials industry, simultaneous increase in quantity and efficiency, extension and completion of the industrial chain, stable production, high efficiency and synergistic profit growth. We have formed a product matrix of more than 20 categories of co-chemical products including methanol, acetic acid, ethylene, glycol, polyoxymethylene, caprolactam and coal-to-oil with a total production capacity of over 11 million tonnes. We have high degree of industry influence and brand power and continue to lead the track of Thank you for joining us. Over 1 million tons of high-end fissure drops, wax and petroleum products Xinjiang Xin Tian Co-Chemical will produce 2.15 billion cubic meters of natural gas, achieving the best performance since commissioning. High-end projects are being fully promoted. The Lunan Chemical Low Carbon and High Efficiency Energy Conversion Integrated Project was officially launched, including commencement of construction on the 1 million ton per year methanol project. are all involved in replacing small-scale plants with larger ones and environmental impact assessment approval for 400,000 tonne per year octanol project. Rongxin Chemical's 800,000 tonne per year olefin project is progressing smoothly with equipment installation and commissioning. Xinjiang Energy and Chemical's 800,000 tonne per year coal-to-olefin project has commenced construction. Future Energy's 500,000 tonne per year high-temperature fissure traps project has made significant positive progress. High-end equipment manufacturing industry, resource complementarity and value leap. Adhering to principle of high-end intelligent feature rich and cluster development will form and others. A resource-sharing and collaborative efficiency-creating equipment manufacturing system is being established to strengthen and optimize Europe's equipment manufacturing R&D base. TH companies first domestically produced and turbine products successfully rolled off the production line. Schwab companies independently developed lithium battery monorail crane products successfully passed EU certification. High-end coal mining equipment such as complete frame batch hydraulic supports, belt conveyors and lithium battery monorail cranes have effectively expanded domestic market and achieved a breakthrough in overseas market exports, reaching 11 countries including Australia, Indonesia and Turkey. Lucy Smart Manufacturing Park achieved annual revenue exceeding $2 billion. Utilizing advanced technologies such as intelligent welding robots and intelligent assembly lines and establishing the industry's first lights-out intensive refining facility. 4. Smart Logistics Industry Intensive and efficient, expanding and upgrading. The integrated operation of railways, highways, ports and shipping, industrial parks and platforms has been fully established. The system, the company's self-operated and equity-participated railway operating mileage exceeded 1,000 kilometers. and 12 integrated logistics parks combining road, rail and motorways were built. Annual freight volume reached 310 million tons, an increase of 10 million tons year on year. Accelerate the development of a network layout that connects rivers and seas and facilitates global logistics. We have standardized operation of 10,000-ton trains with daily collection and distribution volume exceeding 100,000 tons. We are accelerating construction of a green zero-carbon industrial park. Wubo technology has achieved deep integration of physical logistics plus digital platform model. We have successfully expanded into international ocean shipping routes and is accelerating expansion into overseas markets such as Southeast Asia. Both Yan Kuang Logistics and Wubo Technology have been rated as National 5A level logistics enterprises. Five, New Energy Industry, focusing on key challenges. Economic Development Zone promotes the integrated development of wind, solar and energy storage, and Wuhan promotes project construction and indicators. The Inner Mongolia Honda Industry 110,000-watt wind power project has been approved under acquisition model. The Fucheng 180-megawatt wind power project has commenced construction. and efforts are being actively promoted to advance the Rongxin Chemical 1.5-megawatt project, the Zouping 105-megawatt wind power project and the Tai'an Port PV Storage Integrator project. In response to the national two-pronged approach strategic deployment, We actively promoted virtual power generation projects such as the Jinan Power 220kV grid-side independent energy storage power station and Jiao Lu Power Plant 350MW ultra-supercritical cogeneration project. 3. Lean management is being implemented in depth and operational resilience is being strengthened. Faced with challenging situation, we have focused on internal improvements and strengthened internal capabilities, controlling cost reduction potential throughout the entire process and expanding efficiency and profit points across the entire chain, using certainty of lean management to cope with the uncertainty of industry cycle fluctuations. and others. One, deepen internal potential to reduce cost. We implemented in-depth cost control measures including 10 enhancements, 10 efficiency improvements and one cost reduction. And all major products exceeded their planned cost control targets. Specifically, the sales cost per tonne of coal was 321 RMB, a 7% decrease year-on-year. Chemical industry strengthened management, tapped potential to reduce consumption and coupled with the impact of declining raw coal costs. The unit sales cost of methanol was 1,239 yuan per ton, a year-on-year decrease of 17%. Unit sales cost of acetic acid was 1,819 yuan per ton, down 15% year-on-year. The Colorful Beach Project, focusing on cost reduction and control, achieving a total cost reduction and efficiency improvement of 3.5 billion yuan throughout the year. With structural cost reduction as the core, we deepen implementation of honest improvement and two-pronged reduction, resulting in 1.7%... are all working together to improve the energy efficiency of our personnel. and others. Leveraging advantages of synergistic cost reduction, we fully utilize synergistic advantages of the five major industries, optimize and revitalize existing assets and dispose of idle materials and equipment worth 630 million. The disposal of coal production capacity indicators generated additional 1.07 billion in revenue and chemistry industry generated 350 million yuan in synergistic benefits. Two, taking multiple measures to increase efficiency. Implement measures to increase profits such as flexible marketing, optimizing product mix and strengthening quality improvement. Our coal of similar quality leads the surrounding market and price. Average price of our group self-produced coal is 513 yuan per ton. Average price in the second half of the year was up 11.5 yuan per ton compared to first half. One, marketing and price increase to generate efficiency, implement sales strategies such as competitive bidding and pre-deferred price reduction. Bidding generated 45 million yuan in revenue. Two, strategic contract fulfillment and market stabilization. We closely monitor cold market, dynamically optimize customer structure and shipment ratio, and strive to expand the market, improve efficiency and stabilize sales. Sales to key strategic customers in Shandong Province and Shanxi, Shanxi, in Inner Mongolia accounted for 80% and 91% respectively. Improved quality and efficiency of refined coal or clean coal, deepened the implementation of Three Zeros Project and strengthened coal quality management throughout the entire process. Through effective management, the company has won market trust with Yan Kuang Coal Brand and explored profit potential through refined coal efficiency improvement. Clean coal sales increased by 13.8% year-on-year, resulting in 600 million yuan in improved efficiency. Our supply chain focuses precisely on enterprise clients, continuously optimizing investment. Debt ratio fell to 62.2%, optimized financing structure, average interest rate on loans was reduced by 2.46%, and interest expenses of the government 310 million yuan. strictly control expenditure, optimize investment estimates, strictly control unnecessary expenditures, and exclude the Northwest. CapEx was reduced by 860 million yuan compared to the initial plan. Three, improve efficiency, expedite accounts receivable collection, and increase capital and inventory turnover. To reduce capital occupation by the end of 2025, available cash balance was 26.68 billion yuan. Cash flow is stable and monetary funds remain ample. Four, Multiple breakthroughs in value creation to drive the company's steady and long-term development. One, maintain market value and share development. We have deepened the 135 market value management mechanism, closely adhered to the main theme of high-quality development, and implementing strategic measures in multiple dimensions, including value creation, standardized governance, efficient communication. As of March 27, our total market cap was RMB 179.5 billion, up 56.2% from the beginning of the year. Price to Earnings Ratio 10.7, Price to Book Ratio 2.4, further highlighting our investment value. Market cap management has gained high recognition from capital market, winning the 45th place among China's top 100 listed companies, the best listed company by New Fortune, the most valuable Hong Kong stock for investment and the model case of value for Chinese listed companies. Balancing value enhancement and investor returns, the company ranked 24th on the 2025 cash dividend list and 13th on the 2025 dividend yield list of the China Association for Public Companies. will continue to adhere to the high-ratio cash dividend policy and have determined that cash dividends will be distributed at about 50% of net profit after deducting statutory reserves from 2026 to 2028. At the same time, we will promote a RMB200-500 million plus H-share repurchase plan and a RMB100-200 million share increase plan. by controlling shareholder. Two, green and low carbon energy saving consumption reducing base. Adhering to ESG strategic policy of green and low carbon compliance and transparent and sustainable development, we published ESG reports for 18 consecutive years. ESG rating by MSCI has been upgraded to BBB, the only highest rating in the coal industry. Practicing the concept that lucid waters and lush mountains are invaluable assets, we vigorously promote the construction of green mine achieving 100% comprehensive utilization of mine water and coal gangue. The comprehensive energy consumption per unit of industrial output is 2.03 tons of standard coal per 10,000 yuan, a leading level of energy efficiency in the industry. Part 2 Main Product Market Analysis Looking ahead to 2026, the world is undergoing profound changes unseen in a century, with geopolitical conflict leading to global energy supply shortages and a heavy international energy structure, driving the world's energy supply and consumption system towards a green, low-carbon, safe, efficient, diversified and complementary model. We will consistently focus on our core business and strengthen management, seize structural opportunities through scientific adaptation and gain competitive edge in industrial transformation. 1. Co-market Supply and demand continue to optimise. Price centre shifts upward. In 2025, domestic coal production reached new high, while imported coal volume declined year on year. Overall, market supply and demand were relatively loose. Coal prices showed a fluctuation trend of first declining, then rising, and then falling again. The average price for the whole year continued to decline compared to 2024. Looking ahead to 2026, the domestic coal market supply and demand will shift from a relatively loose to a relatively balanced, albeit temporarily tight situation, with price centre moving upward compared to 2025. However, ample supply and high social inventory will somewhat constrain the extent of coal price increases. China's most reliable, controllable and resilient core foundation continues to strengthen its role in bottom line guarantee and system regulation within the new energy system, highlighting its strategic value and providing ample confidence for our country to solidify its energy self-sufficiency and security supply and to cope with changes in external environment. On supply side, domestic coal supply is expected to remain stable, with production growth slowing. With the full implementation of anti-involution policies, the long-term nature of overcapacity verification and the exit of illegally added capacity, compliant production, balanced supply and optimized capacity structure have become clear directions. Imported coal prices continue to be lower than domestic prices, leading to tighter control imports and limited supplementary supply. On demand side, China's economic work will adhere to general principle of seeking progress while maintaining stability, implement more proactive and effective macroeconomic policies, increase counter-cyclical and cross-cyclical adjustments and continue to see effects of measures such as reserve requirement ratio cuts and interest rate cuts, new infrastructure and major projects and urban renewal to boost consumption and expand effective investment. which will strongly drive energy demand. In 2025, total electricity consumption will exceed 10 trillion kilowatt for the first time, with July and August exceeding 1 trillion kilowatt hours consecutively. In January and February this year, industry economic data will further improve, with thermal power generation increasing by 3.3% year-on-year, while growth rates of wind and solar renewable energy generation will slow down. Chemical market is gradually recovering and coal demand is showing rigid growth. In international market, escalating geopolitical conflicts have led to global energy security crisis, driving up international oil and gas prices. Demand for coal substitution continues to be released and improved supply and demand situation has boosted international coal price. Limited coal production increases from major coal-producing countries, rising international shipping costs, uncertainty surrounding Indonesia's reinstatement of export tariffs and reductions in production quota, and anticipated decline in coal production from Australia and Russia have resulted in a tight international coal supply. International Energy Agency forecasts that global coal demand will remain high in 2026 while electricity demand will continue to grow rapidly. Demand for coal in India and Southeast Asia is expected to continue to increase, further strengthening price support. In 2025, chemical industry as a whole will show a strong upward trend, mainly benefiting from decline in raw material costs and year-on-year improvement in industry profitability. So in the coal chemical market, cost advantage can expand and there will be improved industry efficiency. Looking ahead to 2026, with international oil and gas prices remaining stable, cost advantages of current coal-to-oil, coal-to-chemicals and other industrial routes will become increasingly apparent. Coupled with factors such as the expanded supply of chemical products from the Middle East and prices of coal chemical products both domestically and internationally, are expected to rise rapidly. On supply side, the orderly withdrawal of outdated domestic production capacity and limited release of overseas production capacity have alleviated pressure of oversupply to some extent. On demand side, manufacturing demand has improved and the effects of consumption-stimulating policies are becoming apparent, leading to marginal recovery in the chemical industry's outlook. In terms of specific products, shortage is a temporary phenomenon for and Yu Rui, driving annual price centre upward. Given the current volatile energy situation and based on my country's characteristics of being rich in coal, poor in oil and lacking in gas, with abundant resources, modern coal chemical industry plays an important role in ensuring national energy security and self-sufficiency of basic industrial products. It also demonstrates significant economic value amidst sharp fluctuations in international energy prices, becoming an effective supplement to offset temporary shortage of energy and chemical products. For over 20 years, we have been deeply involved in the coal chemical industry, firmly adhering to the path of clean, low-carbon and efficient utilization of coal. This has enabled the group to deeply transform coal from a fuel to a raw material and then to a material, building a complete industrial chain advantage from traditional fuel to high-end materials. Leveraging outstanding coal-chemical integration synergy, our group will fully benefit from the industry's recovery, providing strong support for sustained performance growth. Part 3 Business Objectives and Key Measures for 2026 Currently, various favourable economic policies are being implemented at accelerated pace, and market demand continues to recover, providing strong support for our group's performance growth. We'll fully seize the opportunity, strengthen our confidence, ride the momentum, enhance lean management to increase volume and reduce costs. vigorously expand the market to stabilize expectations and increase efficiency and take solid and effective measures to improve profitability. One production plan will promote tax reduction and two priorities. Carry out special campaigns such as improving current performance and creating excellence, strengthen production organization, upgrade equipment and promote advanced technologies. Ensure that the current agricultural industry achieves effective quality improvement and reasonable quantitative growth. Thank you for watching. Two, cost control. We'll firmly implement cost-driven strategy, integrate lead management throughout the entire production and operation process, and strive to reduce cost of sales per ton of coal by 3%, sales of cost by methanol down by 30 yuan per ton, and cost of exit to exit by 30 yuan per ton. The cost of sales decreased by 30 yuan per ton. Total cost reduction and efficiency improvement for the year exceeded 1.5 billion. Lean production reduces material consumption per unit. Optimizing production continuity and workflow reduces material consumption per unit by more than 5%. We will implement rigid cost control. We will maintain strict budget control to ensure controllable costs are reduced by more than 300 million yuan. Third, we will optimize existing inventory through collaborative efforts. We will increase centralized procurement and expand proportion of consignment and storage to ensure cost reduction of over 250 million. We will also promote inventory clearance and reuse to ensure 10% reduction in existing inventory. CAPEX PLAN Thank you for watching. The debt scale and asset liability ratio are managed and controlled in a dual manner under the premise of meeting expenditure of production and operation, cash dividend and project investment. Asset liability ratio is maintained at around 62%. Part 4. 15th Five-Year Plan Outlook Looking back at the 14th Five-Year Plan period, our group, with extraordinary wisdom and unwavering courage, deepened our presence at home, expanded beyond the province and ventured overseas, winning the three major battles of achieving full production capacity and efficiency, increasing revenue and reducing Thank you very much. The cumulative total profit reached $155.1 billion with average annual net income of $17.5 billion. Total assets increased by 65.6%. Core operating indicators steadily climbed, demonstrating resilience. Adhering to the principle of shareholder supremacy and value sharing, market cap increased by 348%. Cumulative dividends reached $55.5 billion, setting an industry benchmark with tangible value returns. Our country's 15th five-year plan has been launched with great fanfare. The new energy security strategy is being fully promoted. Construction of new energy system is being accelerated. Coal industry is strengthening the clean and efficient utilization of fossil energy, improving coal price, range, control policies and the construction of a coal reserve system, strengthening coal to oil and gas production capacity and technology reserves and promoting the industry towards more standardized and sustainable development. Standing at a new starting point, our group will focus on the main theme of high-quality development, consolidate the foundation of stability by cultivating core industries, stimulate the momentum of progress by fostering emerging industries, and enhance efficiency of excellence by deepening capital operations. We'll create a new industrial system that integrates traditional energy and new energy, and deeply integrate upstream and downstream industrial chains, and accelerate construction of a world-class sustainable clean energy leading demonstration enterprise. 1. Deepen development of core industries and consolidate foundation of stability. 2. Deeply integrate into the national energy strategic base layout, accurately plan and prioritise a number of high-quality and efficient incremental projects, ensure that the release of high-quality production capacity lays a solid foundation for profitability, and enhance the momentum for development through scale expansion, continuously consolidate core competitive advantages and strive to add more than 70 million tonnes of high-quality saleable coal production capacity with obvious location advantages, low disaster risk, reasonable coal type structure and excellent resource endowment by the end of the 15th five-year plan with raw coal output exceeding 300 million tonnes. Expanding capacity and diversifying development to create a 4 plus 1 development pattern for the mining industry. Accelerate construction of four 80 million ton class hydropower stations in Inner Mongolia, Shaanxi, Gansu, Xinjiang and Australia. We are building a super-large coal industry base and simultaneously expanding into diversified mineral resources such as non-ferrous metals, establishing a 4-plus-1 strategic development pattern for the mining industry, and consolidating the ballast for the company's high-quality development. In the Mongolia base, focus on advancing the Yu Fang Hao... Huo Linhe No.1, Liu San, Ge Dan, and Ga, the planned mines, such as Lufu, are scheduled to be completed around 2027 to 2031, will accurately grasp the window of opportunity for relaxation of production restrictions on mines prone to rock bursts and promote the production expansion of Shilao Wusu Coal Mine and Yingpan Hao Coal Mine in a timely manner. Shanxi Gansu Base, focusing on tackling the construction of mines such as Yangjia Ping, Ma Fu Chuan and Mao Jia Chuan Xinjiang Base, ensure smooth achievement of 10 million tons of production capacity in Phase 1 of the Wu Taiwan No. 4 Open Pit Mine Project and focus on completing the procedures for increasing the capacity of Phase 2 to 23 million tons per year Australia-based, continuously strengthen operations and management and actively seek high-quality resources and mature operating projects. Expanding non-ferrous metal mining, the Xinghe Molybdenum Industry Cao Siting Molybdenum Mine will be completed by 2028, becoming a significant profit growth driver for the group. Cooperative development of potash mines in Canada will be pursued when the opportunity arises. promote transformation from single coal production to multi-mineral development. Two, taking full advantage of momentum, building high-end clusters and creating leading enterprises in the coal chemical industry chain, deeply integrating into the national strategic layout of the chemical industry, adhering to direction of humanization, commercialization, low carbonization and regional integration, will promote industry towards resource concentration, high-end extension of the industrial chain and green and low carbon transformation, build a modern chemical industry cluster with reasonable layout, complementary functions and coordinated linkage, promote the coordinated and differentiated development of four major chemical bases of Shandong, Shaanxi, Inner Mongolia, Xinjiang and strive to achieve high-end chemical product ratio of over 70% by the end of the 15th five-year plan period and enter the forefront of the modern coal chemical industry. Shandong Base. With two core industrial chains in Shenzhen, Alcor Base and Amino Base, it leads the production of high-end fine chemicals such as acetic acid, polyoxymethylene and caprolactam. It is accelerating construction of a 1 million ton methanol, 100,000 ton octanol and 60,000 ton polyoxymethylene project. It is striving to build a leading domestic demonstration base for high-end fine chemicals and new materials. Shanxi Base, focusing on high-end coal-based chemicals and clean oils. The base operates a 10,000-ton level coal-to-oil demonstration plant with high efficiency and stability, accelerates construction of a 500,000-ton high-temperature fissure traps project, actively promotes the implementation of a 4-million-ton coal-to-oil plant, and is committed to build a base for coal-based specialty oils and high-end chemicals. In the Mongolia base, leveraging the demonstration effect of the core methanol production area, steadily extending downward into the new materials field, completing a high-quality 800,000 ton per year olefin project, establishing a complete industrial chain from methanol to olefin to high-end new materials, and accelerating construction of a modern coal-based chemical new materials industrial base. Xinjiang base, deeply integrating coal and wind solar resources to explore integrated development of coal chemical plus new energy. led by the 800,000 ton per year coal-to-olefin project. It promotes leap from basic raw materials to high-end new materials, efficiently operating the 2 billion cubic meter Xin Tian coal-to-natural gas project. It focuses on building a demonstration base for integrated coal chemical development. Cultivate and strengthen emerging industries to stimulate the momentum of progress. Optimize industrial structure and accelerate industrial upgrading, while consolidating core industries create diversified, intensified and efficient modern industrial clusters to open up a second growth curve for a new round of high-quality development. High-end equipment manufacturing emphasises specialisation, refinement, innovation and value enhancement. Anchored in the development direction of clustering high-end and internationalisation, we focus on developing and manufacturing high-value-added, internationally competitive cutting-edge products. Becoming a leading integrated service provider of heavy-duty, complete set of equipment in the energy industry, adhering to the Lucy Smart manufacturing part as a model, will cultivate a number of smart factories, lighthouse factories and green factories. Leveraging the advantages of European platform technology R&D and brand value, coupled with strong domestic manufacturing capabilities, will deepen integration of the technology chain, industrial chain and innovation chain, promoting the industry's accelerated leap towards the high end of the global value chain. Smart Logistics emphasizes integration, empowerment, expansion and upgrading. It promotes integrated development of railways. will focus on construction of highways, ports and shipping, industrial parks and platforms, deeply cultivate the physical logistics and digital platform development model, accelerate resource integration, becoming a leading international integrated logistics service provider for bulk commodities, will accelerate layout of a modern logistics network covering major resource-producing areas, core markets and strategic channels, and promote the coordinated development of logistics, scale, sales and storage. New energy emphasizes resource acquisition and deep integration. We adhere to the principle of integrating traditional energy with new energy sources. Energy synergy development will focus on six major development directions. Coal-fired power plant integration, direct green electricity connection, zero-carbon industrial parks, non-electricity utilization, regional competitive allocation, and independent energy storage. We'll promote integrated development model of multi-energy complementarity encompassing wind, solar, thermal, energy storage, and hydrogen Seizing cooperation opportunities in external electricity import to Shandong and Xinjiang electricity transmission to other regions, and relying on existing industrial foundations and new investments, will increase efforts in obtaining new energy quotas and promoting project implementation, driving integrated development of new mines, logistics parks and equipment manufacturing parks with new energy. 3. Deepen capital operation and cultivate the efficiency of excellence. We'll coordinate effort to optimize existing assets and power capital and integrate industries to continuously enhance quality and efficiency of capital operations. In terms of optimizing existing assets relying on the property rights trading platform, inefficient non-core assets are disposed of in a market-oriented way and advantageous resources and funds are promoted together towards intelligent minds with Thank you for watching. will leverage funding channels, increase capital operations, actively acquire scarce resources such as high-quality cooking coal overseas, accelerate the spin-off and listing of wool ball technology, unleash intrinsic value of emerging business segments and enhance overall competitiveness, international operational capabilities and influence in the capital market. Regarding industry integration, the controlling shareholder firmly supports the listed company in becoming stronger and better. The company will fulfil commitment to resolving competition within the same industry and on the basis of the orderly completion of injection of high-quality coal assets, will promote integration of other high-quality industries as appropriate, effectively resolve competition within the same industry and ensure listing. The company's assets have increased in both quantity and quality. Investors, friends, standing at the new starting point of the 15th five-year plan, we are confident and determined that our group will focus on the overall situation of national energy security, adapt to the trend of energy transformation and reform, and coordinate development and security, scale and efficiency, heritage and innovation. With profound industrial strengths, sound management capabilities, and strong innovation momentum, We will calmly cope with market fluctuations and promote the company to steadily move towards a high-quality, more sustainable and more competitive direction. With strong winds and full sails, we forge ahead, riding the crest of the wave. The tide of energy transformation is surging even higher, and the opportunity for high-quality development is right before our eyes. We're fully prepared and ready to set sail. We have the capability and confidence to drive the company's transformation and leapfrog development during the 15th five-year plan period, building a world-class, sustainable, clean energy leading and exemplary enterprise with more optimized asset allocation, a more rational industrial structure and stronger profitability. will surely create greater value and return for our shareholders and stakeholders through sustained and sustainable operating performance. Thank you, everyone.