China Coal Energy Company Limited

We look forward to share the results over the last year, and we sincerely thank your support the whole time. The attendees are Mr. Zhao Zhongde, the Executive Director and President of China Energy, Mr. Jin Shengru, Independent and now Executive Director of China Energy CFO, Mr. Cai Xiaolin, Vice President, Mr. Zhang Guoxiu Mr. Zhang Yiping, Chief Expert and General Manager of Coal Chemical Business Unit Mr. Li Yingping, Vice Director of Sales and Management Mr. Zhang Futao, Chairman of the Board at Shanghai Energy Mr. Zhang Chenbin, Chief Accountant of Shanghai Energy Mr. Duan Jianjun, Board Secretary of China Energy Mr. Sun Kai, General Manager of Xinji, Mr. Yao Zhishu, Independent Director of Xinji, Chen Maojiu, Chief Accountant of Xinji, and also Board Secretary Dai Fei. We'll be talking to you about The China coal results overview and the plan for 2025. And also we'll be talking to you about the overview for the three list goes and their plan in 2025. And the last section is Q&A. Now, I will have Mr. Zhao Junzhe, the President and Executive Director of China Coal Energy to talk to you about the overview of China coal in 2024 and its plan in 2025. Thank you very much for your support, everybody. for your support for China Coal and its list calls. I'll be talking to you about the overview of China Coal and its list calls, its strategy, industry trends, and our work plans. Firstly, China Coal is a mega SOE supervised by SASAC. We're the only whole value chain central SOE in the coal sector. And we have this important mission of securing energy supply. Our main business includes production and trade of coal, power and thermal production and supply, coal-based new materials and the chemicals development. and we control China Coal Energy, Shanghai Energy, and Xinji Energy, these three list calls. As of the end of 2024, our total assets were 600 billion RMB and 120,000 staff. We have been ranked as a level A SESAC company. And we have been ranked among Fortune 500 companies for five years. China Coal Energy is a list call for our main business. It's a large energy enterprise integrating four major lines of business, coal production and trade, coal mechanicals, power generation, and coal mining equipment manufacturing. China Coal Energy was founded in August 2006 and got listed in Hong Kong in December 2006 and got listed in Asia in February 2008. China Coal now has 58.4% of China Coal Energy's shares and for many years this coal has been ranked among the top 100 companies in China and has been rated as excellent by Shanghai Stock Exchange. Shanghai Energy went public in eight shares in August 2001, and the China coal has 62.43% of its shares, and is a comprehensive energy supplier with coal, power, railroads, and energy comprehensive services. Xinjiang Energy got listed in December 2007, and In 2016, 30.31% of shares got transferred from SDIC to China Coal, and China Coal now has 30.37% of its shares. Its main business are coal, power, and new energy. Now I'm going to talk to you about our development strategy and our work during the 14th Five-Year Plan. We uphold the four reforms and one collaboration. and we uphold the dual coal goals and we shoulder the responsibility as a central SOE and serve as a pillar and cornerstone for energy security and we are accelerating the innovation build-out. and are trying to achieve efficiency improvement and transformation for our old and existing new business. And we're trying to build ourselves into a world-class energy company with modern governance, low carbon development, innovation, and multi-energy forms, securing energy supply for China. Firstly is to secure energy supply. We have unlocked over 100 million tons of quality coal and we are focusing on periods with high energy demand. So we are using our concrete actions to secure energy supply to serve socioeconomic development. We are also pushing for the two joint operations and the two hedges. We have breaking records and exceeded 50 million kilowatts for installed capacity for coal power. And we are pushing for the forming of industrial clusters in areas with rich energy resources leading to a high density value chain. The phase 2 heating project is going steadily, and the liquid sunshine project is accelerating in Lutuc, and the Wushan County integration project is going to start construction soon. And we have set up China Coal Institution, and We have also set up a fund with the National Natural Science Foundation. And we have set up a low-carbon innovation center with the Jinjinji National Center of Technology. And we're working with colleges and universities as well. And we are proactively taking on science and technology projects since the start of the 14th five-year plan. And we're also trying to cultivate new quality productive forces. And we're focusing on smart technologies and focusing on low carbon transition and liquid sunshine and also carbon capture sequestration technologies. We're building out a value chain with low coal or no coal to further utilize CO2 as a resource. And we're also investing in coal-based new energy, hydrogen and energy storage. According to the SASX requirements, we are using new ways of information disclosure and do a better job of managing market cap to convey more confidence. And we are also trying to improve efficiency and transformation efficiency. and we have achieved optimized structure and the steady growth as a result. The first four years of 14th five-year plan has seen very good revenue and making us among the Fortune 500 companies. Our financials are better than central SOE averages and our installed coal capacity, installed coal power generation increased fourfold. and we achieved a 0 to 1 for alternative energies or renewable energies. And so 2025 marks the end of the 14th Five-Year Plan and it's also the beginning of the 15th Five-Year Plan. Even though we have achieved a lot of results, this year is going to be more complex because we are faced with more risks and challenges. Firstly, there's more negative impacts coming from the external environments and the recovery is still on shaky ground. But the underlying conditions and trends for sustainable growth for China haven't changed. And the supply and demand in the coal market is still in equilibrium, with more positive policies continue to be implemented. There's still ample supply overall, even though there's tight supply periodically. Even though in the short run, there's a lot of downward pressure, overall, the equilibrium is still there. At the same time, we need to see that China Coal has a wide diversity of coal types, and it's got a lot of long-term contract coal, and it's faced with a vast domestic market, and its operations sound innovation strong. And we have great potential for joint operations. And despite downward pressure, declining prices, and uncertainty in policies, long-term contracts are being strictly fulfilled. And so our profitability is better than averages. And there's also a strong impetus to reform and innovate. We have been rated as an outstanding company by SASAC, and we are also accelerating our transformation and reform efforts. Overall, we have opportunities and challenges at the same time, so we will be upholding the Socialism with Chinese Characteristics under the leadership of President Xi. And we will be implementing the spirits from the 20th National Congress of the CPC and its second and third plenary sessions. And we will be implementing this philosophy of improving efficiency and pushing for transformation. And we will be pushing for the two joint operations, the two hedges to enhance our core competency. In terms of our main goals, we will be implementing the five values and the requirements raised by SASAC to achieve steady progress to ensure that our operational performance is sound. We will be upholding safety to enhance our foundation. We will put people's lives at the center and try to achieve success. Zero casualties and accidents by way of detailed safety management measures. We will also set reasonable production and sales targets to try to achieve them. We will be trying to go with the policies and increase sales while being safe and compliant. We will also be improving management capabilities. We will be using different kinds of management modalities to improve efficiency, effectiveness, and cost effectiveness so as to tap into the potential of growth and value creation. Four, we will continue to reform and finish off the reform efforts. Five, we will continue on this path of the two joint operations and two hedges. will continue to accelerate the transformation of the company to tackle market volatility. Six, enhancing innovation and scientific R&D to cultivate a new qualitative productive force. We will be implementing the strategy of development driven by innovation to cultivate Coal Energy Company Limited We will make our three list calls stronger and make them great examples of the capital market with great performance and integrity so that investors can understand what's going on and have confidence in our performance. And we will also be promoting and contributing to the modernization and economic development of China. We hope that you can continue to pay attention and support our effort. Thank you so much. Thank you, Mr. Zhao. I will be talking to you about the overview of 2024 for China coal energy. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited

In 2024, we realized the production of 137.57 million tons, an increase of 3.35 million tons, or 2.5%. So Shanxi region increased by 8.69 million tons, and Mongolia and Shanxi region increased 1.72%. and Jiangsu increased by 0.49 million. And for the type of coal, 2.87 million ton of coal, an increase of 2.3, coking coal, 0.48. And the company took initiative to overcome the difficulties and challenges and try to improve and try to complete the supply guarantee and try to improve the fulfillment of the contract. and we conducted different methods to improve the revenue and stabilize the market share. So in 2024, the sales was 28,284 million ton. So it was basically breaking even. So for the buy-off of trade coal and the import-export and the internal represented or agency coals return, Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited In 2024, coal chemical product reached 5.69 million tons, down by 346,000 tons, down by 5.7%. PO increased by 27,000 tons, up by 1.8%. Urethane down by 195,000 tons. Methanol down by 171,000 tons, down by 9%. and the sales network was continuously improved and we continued the improvement of the coordination of production and sales and transportation and of course regional coordination So in 2024, the coal chemical product increased sales was 5.84 million tons down by 284,000 tons and the urethane down by 150. Coal Energy Company Limited The sales cost was down by a lot. The unit cost of coal product was $281.73 per ton, down by 25.28 or 8.2%. And the amortization and depreciation was down by 6.98 per ton. And we also added the base number of the production and the reservoir amortized base. So the cost was down. The maintenance was down by 2.8. And then for the freight cost or transportation or the warehousing or port was down by 4.33 or 7%. And the proportion of the self-produced coal in the overall coal sold was down. And the other cost was down by 14.71 per ton, down by 48.3%. So the... There is some still balance of the special fund of the safety fees and maintenance. And affected by the raw coal and the fuel coal purchase price, the sales unit cost was down. So the PO cost was $6,200 per ton down by $137 and for methanol $1,779 down by $110 and for the turnaround It affected urethane by 1,656. So then for ammonium nitrate, it was 1,315 per ton, a urine decrease of 11%. Product Price Followed Market Fluctuation In 2024, the average price of long-term agreement coal in the port was 701 per tonne, down by 1.82% year-on-year, with the highest price of 701 110 in January and the lowest 696 in December Average spot price of 5,500 kcal power coal in the port was 863 and the highest price of 931 in February lowest 794 in December The average selling price of the company's self-produced commodity coal was 562 per tonne Year-on-year decrease of 40 per ton, 6.6%. And the price of power coal was 499 per ton, year-on-year decrease of 33 per ton, or 6.2%. And the coking coal was 1,254 per ton, year-on-year decrease of 9.5%. And the sales of bio-trade coal was 583. The decrease year-on-year was 9.5%. PO was 6,991, a decrease of 1.2%. Urea sales was 2,047, down by 15.5%. And the sales price of methanol was 1,757, up by 0.5%. And ammonium nitrate was 2,054, a decrease of 12.3%. In the case of the downward trend of market-priced coal, coal chemical and other major products, the company has strengthened its operational management and also continued to maintain a high level of profitability. And in 2024, we realized a total profit of 31.58 billion yuan down 44% year-on-year, realized net profit attributable to shareholders of the parent company of 19.323 billion yuan down 1.1% year-on-year, Consolidated gross profit margin 24.9%, year-on-year decline of 0.2%. Net cash flow from operating activities amounted to $34.14 billion, year-on-year decline of 20.5%. Basic earnings per share 1.46, down 0.7, and weighted average return of net asset 13.01, down by 1.2%. And the changes in total profit in 24 are the follows. The main profit-gaining factors. First, the decrease in unit cost of sales self-produced commodity coal increased by $3,486 million. And the finance cost decreased by $6. The main profit-reducing factors, the self-produced commodity coal price fell down by 5 billion yuan and the investment income decreased by 441 million yuan. Taxes and surcharges increased by 299 million yuan. Provision of impairment increased by 285 million yuan. Power generation heat supply decreased profit by 130 million yuan. Coal mining experiment decreased profit by 71 million yuan. At the end of 2024, the total asset amounted to 357 billion, up 2.5%. Shareholder's equity attributable to parent company, 151 billion, up 0.4%. Year-end ratio, 46.3%, down 1.4%. And the earnings per share is 11.46 yuan per share. In 2024, the company will focus on giving full play to the advantage of coal power and chemical industry chain, promote the regional integrated management, optimize the regional structure, and we also organized the market and tried to start and accelerate the transition. The full life cycle of coal production Facilities was implemented and we realized the growth of 6.6% and for the contract signed the cumulative value of 2.0% year-on-year. And we also had the innovation of financial business and made comprehensive efforts in enriching product design and We also got the title of Advanced Collective Central Enterprise by Ministry of Human Resources and Social Security . And our asset size exceeded $100 billion for two consecutive years, gross profit of 62.4%, up 5.2%. And in 24, company's capital expenditure plan closely centered on coal, coal chemical, power, new energy, and coal mining, including capital projects, equity investment, technological transformation, and renewal of investment in three categories. In 24, the expenditure plan totaled 16 billion yuan during the report period. Total of 15.2 billion yuan was completed, 95%. The coal mine and coal preparation plant project will complete an investment of $1.2 billion. The project is under construction and expected to come into operation in 2026. Rizgo Coal Mine and Coal Processing Plant will complete an investment of $380.24 million with a cumulative investment of $2.79 billion. and the project is under construction and for Ping Shuo Anti-Ball 2x350 MW low calorific value coal power generation project completed 268 million yuan in 24 and Urumqi 2x60 MW power plant project will complete the investment of 437 in 24 and it's expected to be put into operation in 27. TransUnion Coal Chemical Industry Phase 2 is expected to be completed in 2026, and we will have a one-time, one-goal startup. And for Liquid Sunshine Project, it will have a total investment of $749 million, and it's in construction, and it's expected to be put into use in 2026. In 2025, the TAPEX will be mainly in coal, coal chemical, coal power, new energy, coal mining equipment. And the annual TAPEX is planned to be 21.6 billion yuan, an increase of 41.7% compared to the previous year. And the main projects, for example, for equity is 415 million. And then for tech revamp, 600 million. Coal Segment Coal Chemical Coal Segment Coal Power, $1.3 billion, and New Energy, $2.691 billion. And then we will make effort to build the technology creator and energy low-carbon innovation center and try to focus on the low-carbon transformation. In 2024, we got 47 progress awards above the industry and 2,276 authorized patents in 2024. So... We will deeply integrate the digital transformation with the production and operation of the enterprise and put smart control platform online for trial operation. And we are trying to make breakthroughs in stimulus policies. And we will try to have a perfect closure of this period and try to maintain the position in the top of the list of the top 100 listed companies in China. We have been awarded the Great A rating for information disclosure by Shanghai Stock Exchange for 15 consecutive years. 10. Stabilization of Safety and Environmental Protection for the Better I deeply implemented the idea of ecological stabilization and effectively fulfilled the ecological environment protection responsibilities. In 2023, the company invested 3.21 billion yuan in environmental protection without any environmental emergencies occurring. We have always adhered to the safety concept of people first and life first, and we always controlled and remedied the major safety risks and tried to improve the inherent safety. In 2024, production safety cost was 3.2 to 7 billion yuan and the overall safety situation was stable. And we persistently gave back to shareholders. In 2024, company paid a special dividend of 1.5 billion and an interim dividend of 2.936 billion, totaling 4.436 billion yuan. And in order to share the benefit with the shareholder in the year of 24, we plan to pay 35% of the net profit attributable to shareholders of the listed company of RMB 18.156 billion. So per share, we will pay 0.258 billion.

We have cumulatively paid out 44 billion RMB, maximizing the interest of our shareholders and sustainable development of the company. Looking forward in 2005, we will continue to focus on efficiency and transformation to drive our value through innovation efforts. and our plan is to achieve 133 million tons of commercial coal of sales, 1.34 million tons of polyolefin, and 2.05 million tons of urea. We will continue to exert more control and fire management to ensure Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited 5. We will control major risks to ensure sustainable development. 6. We will manage our market cap to improve our governance capabilities. We will continue to work hard to build ourselves into a top-tier energy company to maximize returns to the shareholders and our investors. Thank you so much for your attention. Thank you. Mr. John Futel, the president, Chairman of the Board for Shanghai Energy will be talking to you about their overview in 2004 and plan in 2005. Distinguished Mr. Zhao, guests, ladies and gentlemen, was an important year for achieving the target asks for a 14th five-year plan, and we have been upholding socialism with Chinese characteristics with the leadership of President Xi, and we are trying to improve efficiency and transformation, and we're implementing 1, 2, 3, 4, 5 strategy, and we also led our staff to work really hard to improve our core competencies. to improve our quality and efficiency. Now I'm going to talk to you about our performance in 2024, the accomplishments, and our future plans. Firstly, we enhanced the coordination among production, transportation, and sales. Despite the weak market conditions and the challenges, we completed our budget goals. Power generated was 3.82 billion kilowatt hour, out of which 4.53 million tons of clean coal. 370 million was from renewable energy. Net profits were 716 million RMB. Total profits were 880 million RMB. Total assets were 19.69 billion RMB. Net equity was 12.81 billion RMB. Debt-to-asset ratio was 35.17%. Coal generated 6.29 billion RMB of total revenue, accounting for 67%. Power was 1.96 billion RMB, accounting for 22.9%. Aluminum processing revenue was 960 million RMB, 10.2% of total revenue. And comprehensive services, 180 million RMB, 1.9% of main revenue. and we are improving our management capabilities and we have taken measures to optimize our costs compared to the budget, the cost of raw coal production and coal cleaning power sales were down by 21 RMB per ton, 1.7 RMB per ton, and 0.8 cents per kilowatt hour, respectively. And we also reduced admin expenditure, achieved a tax relief, which accounted for 15 million RMB of savings. And we also achieved a replacement value of 110 million RMB. To enhance the coal quality management, we achieved 230 million RMB of additional revenue. And by expanding our presence in North Port's markets, we acquired four new quality customers and sales increased by 10%. Coal Energy Company Limited We also hired 98 undergrad students fresh out of college, and we moved people to underground posts. Revenue ratio among the three business lines of coal mines were 1 to 1.9 to 2.91. 102 ground staff proactively took underground posts. The tenure and the contract-based system covered all managers, and we were ranked as excellent by SASAC, and we got grade A ratings from Shanghai Stock Exchange. We are also accelerating the progress of projects, and we are firmer in terms of transformation. The grid integration of renewable energy project has pretty much completed. So three projects have been integrated into the grid. They included the 263,000 kilowatt PV project, 40,000 kW PV project, and 5,900 kW distributed PV project. The London area is also ready to be integrated into the grid. The renewable energy there reached 473.9 thousand kilowatt. and we signed the land lease for phase two PV project with 204,000 kilowatt and the 3,580 mu. We signed that finished project initiation filing and we signed a carbon sink project with Hebei Weixian, Wake County government. And we also completed the permanent drainage system for Weizhou mine. And we also doubled down on technological innovation, which has been put as the top priority of ours. We invested 380 million RMB with an intensity of 3.7%, and we achieved the 26th Science Advancement Awards. 40 patents, 12 of them were invention patents. Eight reached international advancement level. And we also invested 160 million RMB to build two plus 12 intelligent mining phases. And we also smartly swapped out 140 people from underground. And we also got approved for our disruptive surveying technology program. and we also reduced the coal gain by 30%. We also increased returns to the shareholders Since our listing, we have been paying out cash dividends for 20 years, amounting to 3.621 billion RMB, 4.13 times of our raised capital. We paid Cash Dividend of 145 million RMB in 2025, and this was our first interim dividend payout. And on the basis of this interim dividend payout, we paid another 145 million RMB. Specifically, it was two RMB tax included per 10 shares. So Together, we paid out 290 million RMB in cash dividend in 2024, accounting for 40.4% of our profits. And we have also formulated our market cap management and valuation improvement plan to keep improving the investors' confidence in us. Fifth, our future plan. The overall philosophy is to improve efficiency and drive transformation. Joint Operations and Two Hedges and we'll be building out our three bases and upholding our four principles and enhance our safety, stability, efficiency, transformation, innovation and leadership. And by doing all these, we will try to transform ourselves to achieve new heights. for Jiangsu headquarters. We will try to stabilize output at 7.29 million per ton, and this is a supporting zone and pilot zone for us. We will build a national base for clean energy and ecosystem governance for our subsidence area with over 1 million kilowatt-hour, kilowatt, rather, worth of coal reserves, and we will try to build another couple grid integration demonstration bases. and use CO2 as a resource and also develop underground space and other future industries. For Gansu and Shanxi, these are our strategic reserve zones and development acceleration zones. We will try to have another coal output of 12 million tons per year to 1 million kilowatt coal power projects and over 1 million Renewable Energy Installation It's going to be the last year of the 14th five-year plan and also an important transitional year for us. We'll be upholding the Xi Jinping thoughts and implementing the spirits of the 20th MPC and the third and the second plenary session. We will be upholding all these philosophies and Uphold the red lines of safety, environmental friendliness, and integrity, and also stabilize our workforce output and operations. We will also be continuing to optimize our costs, focusing on nine areas, including HR optimization, wage reform, marketization, tenure and contract-based management, disciplinary integration. and major risks control. We will also try to achieve eight goals including improving our operations and achieving excellent status for our management and also achieving all of the safety production standards. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited and we do pay a lot of the cash dividends and we hope that the patient capital can grow with us and we would like to use this earnings report to get your opinions and recommendations and we will continue to Thank you all. Thank you, Mr. Zhang. Mr. Sunca will be talking to us about the performance in 2024 for Xinji and their plan for 2025.