China Coal Energy Company Limited

Nicole, I'm honored to become the host and to bring you on the performance of China Coal Energy, Shanghai Energy and Xinji Energy will have this consolidated earnings briefing and to do the reports and outlook. We want to express our gratitude for the Shanghai Stock Exchange, Roadshow Center and all the live streaming platforms and we appreciate your support for our group. Those attending our meetings, we have Mr. Gao Shigang, China Coal's Party Secretary, Board Member Mr. Zheng Yanqing, China Coal's Independent Executive Director and CFO, Chai Xiaolin Chi Luozhou, General Manager for the Chemicals Department Vice Director for Marketing Department, Mr. Lin Bing China Energy's Chairman, Mr. Zhang Futou Independent Executive Director, Mr. Zhou Fengshan General Accountant, Mr. Zhang Chengbin Xinji Energy General Manager, Mr. Sun Kai Independent Executive Director, Mr. Yao Zhishu Vice President Zheng Xuesong General Accountant Mr. Cheng Moji Board Secretary Mr. Dai Fei and all the business heads for the three subsidiaries. We'll have five items on the agenda. First is the basics about China Coal Group, our performance in the 14th February plan, our outlook for the next February plan outlook. And then the three listed subsidiaries will brief you on our performance, our tasks completed, and our work tasks for the 2026. And then we will have the Q&A session. Let's give the floor to Mr. Gao Shigang to give you a briefing about the China Coal Group, our achievements in the 14th five-year plan, and the outlook for 2026 and the next five-year period. Distinguished investors, ladies and gentlemen, good afternoon, welcome to the 2025 Collective Performance Briefing for China National Coal Group Solicited Subsidiaries. I would like to express my sincere gratitude for your continued attention and support for China Coal. I will provide a brief overview from four aspects. The basic profile for China Coal and the solicited subsidiaries key achievements during the 14th Five-Year Plan and the development plan for the 15th Five-Year Plan and analysis of industry trends outlook for 2026. First Overview of China Coal China Coal is a key state-owned backbone enterprise under the supervision of SESEC. As a central enterprise covering the entire coal industry chain, it shoulders the important mission of ensuring national energy security. Our core businesses include coal development, utilization and trading, electricity and heat production and supply, coal-based new materials and related chemical product development, equipment manufacturing, and engineering and technical services. We have controlled proven coal resources reserves exceeding 70 billion tons with a total capacity of 310 million tons and annual trading volume of 400 million tons. We operate and construct 11 ton chemical projects with a total capacity exceeding 20 million tons. We have an installed capacity of over 47 gigawatts for thermal power in operation. and renewable installed capacity of 7 gigawatts. We hold controlling six and three listed subsidiaries, China Coal Energy, Shanghai Energy, and Xinji Energy. By the end of 2025, the group's managed total assets exceeded $650 billion with 120,000 employees. We have received an A rating from SASAC for operational performance for six consecutive years and have been listed in the Fortune Global 500 for six consecutive years. China Coal Energy, the core listed subsidiary of China Coal Group. It's a large-scale energy enterprise integrating coal production and trading, coal chemicals, power generation, and coal mining equipment manufacturing. It was listed in Hong Kong in December 2006 and returned to Asia market in February 2008. Shanghai Energy was listed on the Asia market in August 2001, primarily engaged in coal electricity, railway operations, and integrated energy services. Shinji Energy was listed on the Asia market in December 2007 and became a holding subsidiary of China Coal in 2016, mainly involved in coal electricity and renewable. Second, the key achievements during the 14th five-year plan period and development plan for the 15th five-year plan. During the 14th five-year plan period, China Coal and its listed subsidiaries diligently implemented the requirements from SASEK. We adhere to the general principle of pursuing progress while ensuring stability, enhancing efficiency from existing assets, and driving growth through new businesses pursued. Two integrated business models established and refined governance systems, innovative information disclosure, strengthened IR management, took measures to enhance market cap, and promptly conveyed confidence while stabilizing expectations. We delivered remarkable achievements characterized by steady growth, structural optimization. The key features are First, focusing on core businesses with enhanced core competitiveness with the mission of ensuring national energy security during the 14 five-year plan period. We fulfilled medium and long-term coal contracts of 730 million tons, reserved 160,000 tons of fertilizers, supplied nearly 10 million tons of urea, and provided over 110 billion RMB benefits to society. We completed investments exceeding 200 billion RMB and paid total taxes with over 180 billion RMB contributing to local economies. We optimized our industrial structure. Total coal production capacity reached 310 million tons per year. up by 22 percent versus 2020. Installed capacity of thermal power in operation and under construction exceeded 47 gigawatts quadrupling versus 2020 installed capacity of renewable in operation and under construction surpassed seven gigawatts achieving leapfrog development significant significant progress was made in the two integrated business models Through coordinated efforts in resource and marketing, we leveraged the synergies of the full coal-based industrial chain. Distinctive, integrated coal, electricity, chemicals, renewable industrial chain with China coal characteristics has gradually taken shape. Second, we focused on strengthening our business, achieving improvements in scale and efficiency. The enterprise has grown rapidly, with total assets increasing from 400 billion yuan in 2020 to over 600 billion RMB. Production volumes of major products achieved substantial growth since 2017. Coal production has remained above 240 million tons. Power generation went up by over 80%. And the output of coal chemical was above 10 million tons. Maintaining a safe, stable, long-term full capacity and optimal operating status. The average annual operating revenue during the 14th February plan period was up by 80% compared with the previous period. Profitability was enhanced with average annual total profit exceeding 40 billion yuan. Thirdly, we focused on value creation, achieving quality improvement for listed subsidiaries. During the 14th five-year period, China Coal achieved an average annual total profit of 30 billion yuan, up by 2.53% versus the 13th five-year period, with market cap growing by approximately 200%. We consistently ranked among the top of the China Top 100 listed companies. and received the Shanghai Stock Exchange's A rating for information disclosure for 16 consecutive years. Shanghai Energy focused on strengthening its fundamentals, making efforts in areas such as system optimization, lien management, policy utilization, and bidding procurement, achieving cost reduction and efficiency improvement. It's Average annual profit grew substantially, while its assets, market cap, and stock price all maintained a stable upward trend. Shinji Energy promoted transformation and upgrading, advancing the integrated development of coal and power during the 14th five-year plan. Its installed thermal power capacity went up by 98% from 2 gigawatts at the end of the 13th five-year plan. 7.96 GW at the end of the 14-5 year plan period, proving the effectiveness of the two integrated business models. Its average annual operating revenue increased, with both average annual profit and asset growing. During the 14th five-year period, the three listed subsidiaries cumulatively paid out dividends of 30.9 billion yuan up by 360% versus the previous five-year period. By the end of the 14th five-year plum period, the combined market cap of the three listed subsidiaries reached 176 billion yuan. Problem-oriented approaches Achieving significant improvements in risk prevention and control capabilities Safety supervision responsibilities were strengthened Safety awareness among all employees was enhanced System support capabilities were reinforced Overall safety production remains stable We continue to strengthen pollution prevention and control capabilities Coal Energy Company Limited Materiality Analysis Fifth, we focused on innovation-driven development, getting momentum for transformation and development. The group refined its innovation system, featuring a small internal brain plus large external brain. We established the National Natural Science Foundation of China Enterprise Innovation and Development Joint Fund in the field of coal energy. The National Key Research and Development Program Disrupted Technology Innovation Key Project Energy Low Carbon Joint Innovation Reorganized the National Key Lab of Digital and Intelligent Technology for Unmanned Coal Mining Established the Energy Low Carbon Innovation Center of the Beijing Tianjin Hebei National Technology Innovation Center Got approval for the construction unit of the Central Enterprise Industrial Green low-carbon original tech source and a leading technology-based enterprise with focused on national strategic needs. The development of original technology, the strategic emerging industries, the group increased our R&D spend by 2.2 times compared with 13th five-year period. Breakthroughs in key technologies were advanced including Special Catalyst for polypropylene units filling the technology gaps. During the 15th five-year plan period, China coal and China coal energy will be guided by the Xi Jinping thought on socialism with Chinese characteristics for a new era. Fully implement the spirit of the 20th National Congress of the CPC and its subsequent plenary sessions. Fully implement the new development philosophy. Deeply implement the renewable energy. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited We all drive of efficiency gain of existing assets and transform incremental assets practice. The two integration plus model build a two hedging mechanism against the downward risk of the external market for own coal and against future Shanghai Energy will leverage its three major bases in Jiangsu, will focus on the Anhui Jiangxi region, aiming to create a 100 billion yuan level energy supply industrial cluster in East China. It will promote coal development of coal, thermal, and renewable power with seven major industrial bases in Huainan, Fuyang, Boizhou, Chuzhou, Lu'an, Xuancheng, and Jiangxi, laying a solid foundation for high-quality development. China Coal will leverage the synergy of its listed companies to enhance high-end energy supply and service guarantee capabilities, striving to become a highly competitive integrated energy player by 2030 and by 2035, a world-class energy company with multi-energy complementarity, green and low-carbon exemplary leadership and modern governance. Industry Analysis China's development is characterized by strategic opportunities and risks with increasing uncertainties. The company's production, operation, reform, and development will face a complex external environment. In macroeconomy, the world is undergoing accelerated changes with with increasingly complex and intense great power competition affecting domestic development. At the same time, China has mismatched supply and demand and many risks and hidden dangers in key areas. However, the fundamentals supporting China's long-term positive economic outlook, including a stable economic foundation, numerous advantages, strong resilience, and great potential, remain unchanged. Supported by serious macro policies, especially the 15th Five-Year Plan, the development has great prospects. in terms of industry operation with profound adjustments in a global energy landscape and parallel construction of a new energy system. The green and low-carbon transition is a long-term process. Ensuring energy security is essential for stable economic and social development, and coal's role as a primary energy source and a safety net is more prominent. Considering international geopolitical tension, the supply and demand China's coal market in 2026 is expected to be tight. The LTA mechanism for ensuring the supply of thermal coal will still be an anchor, and the spot price of coal is likely to rise with more fluctuations. Looking into the 15th five-year period, we are still in strategic window of opportunity. The foundational role of coal and thermal power will be strengthened. A new power system with renewable as the mainstay is being accelerated. Technological and industrial innovation is integrating. The unified national market is advancing. This period presents both opportunities and challenges, as well as pressures and drivers. Facing this new landscape, China coal possesses the following advantages. First, resource and scale. Abundant coal resources and board production capacity, strong internal synergies, a solid development foundation, and considerable industry influence. Second, value creation advantage. Lean management has been implemented with notable cost reduction efficiency gains and economic benefits, and our operational performance consistently ranks among the top of the central enterprises. Third, industrial chain synergy. We continue to optimize our industrial structure, integrating coal, coal chemicals, renewables with more resilience. Fourth, innovation and mechanism. Investment in technology continues to grow. The science and innovation system is refined, giving us more momentum. Fourth section, outlook for 2022. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Achieving a good start for the 15th five-year plan. First, we will scientifically optimize production organization, develop potential and enhance efficiency. We'll carry out special actions to improve quality and efficiency, strengthen refined management and cost control. Second, we will focus on project development and advance strategy implementation. We prepare the 15th five-year plan, develop The coal, electricity, chemicals, renewables business strengthen the modern industrial system, create new growth engines, and enhance the tool hedging capacity. Third, We will consolidate and deepen reform achievements and drive reform to greater depth. We promote reform to the grassroots level, remove institutional and mechanism obstacles. Fourth, we will strengthen the management of listed subsidiaries and solidify investment value. We will improve the market cap management, enhance the quality of information disclosures, strengthen investor communication, and maintain overall stability in operational performance, barring significant market changes. Dear friends, the development of China Coal is inseparable from your trust and support. We will always uphold the principle of openness, transparency, and mutual benefit to continue to improve our management, accelerate green transformation and innovation, and strive to become a trustworthy, outstanding listed company with long-term investment value. We firmly believe that with the joint efforts of all shareholders, investors, and all sectors of society, China coal will take on greater responsibility and make even greater contributions to the advancement of Chinese-style modernization. Thank you.

Thank you, Mr. Gao. Now let me give you a presentation of the operating performance of China Coal Energy during the 45-year plan and the work arrangement for 26. So, dear investors and analysts, I will begin with the performance presentation of China Coal Energy. unless otherwise specified, this is subject to the Chinese Accounting Standard. China Coal Energy has resolutely implemented the decisions and plans of the Central Committee and firmly grasped the theme of high-quality development and earnestly practiced development strategy of improving efficiency in existing operations and transforming new ones. It has accelerated the advancement of two joint operations and actually building the two hedging mechanisms, continuously enhancing development resilience. High coal output and stable sales with enhanced efficiency during the 45-year plan. The company resolutely shouldered the mission of ensuring energy supply and carrying out in-depth benchmarking of refined management. We have achieved a total of 639 million tons of commercial coal output. An increase of 43% compared with the 35-year plan and a total of 1.4 billion tons of commercial coal cells. An increase of 52.7% compared with the 35-year plan period. In 2025, the company made every effort to ensure safe and stable supply of coal and fully release the production capacity of high-quality mines. To maximize output and benefits, the company strengthened the management of coal quality at the source We have increased the mining area by 18%, optimizing the output. However, due to stricter safety supervision and changes in the geological conditions, the company's coal output decreased. The total commercial coal output was approximately 135 million tons, a decrease of 1.8%, but still at a relatively high level in history. The company adhered to the general tone of a stable and refined sales, strengthened the coordination between production and sales, and deeply implemented the marketing strategy of a segmented product and segmented markets. It innovatively launched a new trading model such as a virtual coal mines and maintained a sales base under the background of deep pressure in the industry. The fulfillment rate of the median long-term contracts for thermal coal exceeded 90%, fully playing a role of the stabilizer in energy supply. In 2025, the total commercial coal sales were 256 million tons, a decrease of 10.2%. And the self-produced commercial coal sales were 136 million tons, a decrease of 0.9%. and the purchased coal sales were 109 million tons, a decrease of 23%. The average sales price of a self-produced commercial coal was 485 yuan per ton, a decrease of 13.7%. Among them, the sales price of a thermal coal was 448, a decrease of 10.2%. The sales price of a coking coal was 949, a decrease of 24.3%. The sales price of a purchased coal was 492 yuan per ton, a decrease of 15.6%. Second, stable and refined sales in coal chemical industry and rapid growth in a new energy business. During the 14th five-year plan, the company's coal chemical business maintained a very robust curve. The total output of major coal chemical product was 28.9 million tons, an increase of 49.2%, coupled with the 13th five-year plan. And the total sales volume was 29.545 million tons, an increase of 49.9%. The total installed capacity of the wholly owned and controlled coal-fired power plants under construction and operation was 53.99 million kilowatts, an increase of 58%. The total installed capacity of new energy has also reached 12 million kilowatts, growing from scratch. In 25, the company's coal chemical business adhered to the standard operations, strengthening basic management, and successfully completed the national commercial reserve tasks. The total output of major product was 6.06 million tons, an increase of 6.5%. Among them, the output of polyolefins was 1.38 million, decreased by 8.5%. The output of urea was 2.134 million tons, an increase of 14.1%. The output of methanol was 1.955 million tons, an increase of 13%, and the output of ammonium nitrate was 0.58 million tons, an increase of 1.9%. The company continuously improves its marketing network, flexibly adjusts its sales strategies, optimizing the layout and flow direction. In 25, the total sales volume reached 6.356 million, an increase of 8.8%. Specifically, the sales volume of polyolefins was 1.381 million tons, a decrease of 9%. The sales of urea was 2.423 million tons, an increase of 18.9%. The sale volume of methanol was 1.963 million tons, an increase of 14.4%. And the sales volume of ammonia and nitrate was 0.58 million tons, an increase of 3%. The sales price of polyethylene was 6,337 yuan per ton, a decrease of 9.4%. The sales price of urea was 1,752 yuan, a decrease of 14.4%. The price of methanol was 1,637 per ton, a decrease of 1.1%. And the price of ammonium nitrate was 1,776 yuan per ton, a decrease of 13.5%. Thirdly, upgrading of coal mine equipment services and the prominent value of a financial business. During the 45-year plan, the coal mine equipment business promoted the improvement and expansion of joint storage and supply and attention transformation, achieving a total output value of $50.41 billion, an increase of 56.6%. The financial business is centered on the construction of the treasury system and continuously improving the level of centralized and lead management, maintaining an asset scale of over $100 billion, and net profit continues to grow steadily. In 2025, the coal mining equipment business will accelerate its transformation towards intelligent manufacturing plus modern services, achieving a total output value of $9.21 billion. We have also obtained international orders worth 1 billion, an increase of 22.9%. We have also been highly rated by SASAC. Fourthly, in-depth promotion of lead management. During the 14th five-year plan, the company deeply implemented standard cost management and all production centers established cost control mechanisms. In 25, in the face of a 77 yuan per ton decrease in average selling price of self-produced commercial coal, the company deeply carried out the lead management approach. The unit sales cost of major product decreased significantly. In 25, the unit sales cost of a Self-produced commercial coal was 251.51 yuan per ton, a decrease of 30.2 yuan per ton, or 10.7%. Specifically, material costs decreased by 5.45 or 9.4%. Labor costs decreased by 0.82 per ton or 1.4%. Depreciation and amortization increased by 1.76 or 3.9%. Maintenance expenses decreased by 1.26 yuan or 11.6%. transportation and port charges decreased by 1.82 or 3.2% and other costs decreased by 22.63 or 43%. So this was mainly due to the company's implementation of cost management and also the optimization of production organization which led to a decrease in the material cost per ton of coal. Additionally, due to the need for safety production and the future production continuation, the use of There is an increase of unit depreciation and amortization costs. In 2025, due to the decline of the purchasing price of raw coal and fuel coal, the unit sales cost of some products decreased a year. Specifically, the unit sales cost of poly Polyolefin was 6,136, a decrease of 1.6%. The unit sales cost of urea was 1,297 per ton, a decrease of 21.7%. The unit sales cost of methanol was 1,321 per ton, a decrease of 35.7%. And the unit sales cost of ammonium nitrate was 1,412 yuan per ton, an increase of 7.4%. Number five. The company maintained a stable business performance and continuously optimizing the financial structure. During their 14th five-year plan, the company strengthened the operation management, focusing on improving quality efficiency. We have reached an annual revenue of $198.2 billion, an increase of 91.8%. And the average annual profit was $30 billion, an increase of 253%. The weighted average return on that asset increased by nearly 6 percentage points compared to the end of the 13th five-year plan. The average annual net cash flow from operating activities was $39.7 billion, an increase of 109%. The company's market cap increased by 209%. and the total net profit distributed to parent company over the past five years was $88.7 billion, laying a solid foundation for the long-term development. In 2025, because of the decline in the market price of coal and chemical products, the company achieved a revenue of $148.1 billion, a year-on-year decrease of 21.8%, the total profit was $26.6 billion, a year-on-year decrease of 15.7%, the net profit distributed to parent company was $17.9 billion, a year-on-year decrease of 7.3%, The comprehensive GDP margin was 27.5, an increase of 2.6%. The basic earnings per share was 1.35 yuan. Despite the overall pressure in the industry, the company still maintained a strong profit resilience. The company continuously strengthens cash flow management with a net cash inflow from operating activities of nearly 30 billion, providing a solid support for business development and shareholder returns. The asset liability ratio further decreased to 45.8%, the capital structure became more stable, and the risk resilience is increased. The changes in the total profit in 25 were as follows. Firstly, the unique sales cost of self-produced commodity coal decreased, increasing profits by $4.16 billion. Second, the reduction in taxes and surcharges increased the profits by $0.8 billion. Thirdly, the power business increased the profits by $0.7 billion. Fourthly, reduction in period expenses increased the profits by $0.53 billion. Fifth, the reduction in impairment provisions increased the profits by $0.426 billion. The main profit decreasing factors were, first, the decline in self-produced commodity coal pricing by 10.5. Second, the main coal chemical enterprises reduced their profits by 0.36 billion. Thirdly, the decrease in the sales volume of self-produced commodity coal reduced their profits by 0.35 billion. Fourthly, the reduction in investment income reduced their profits by 0.34 billion. Fifth, the decrease in non-operating income and expenses reduced their profits by 0.087 billion. Number six, the company steadily advances the two joint operations and enhance the momentum for development. During the 45-year plan, the company accelerated the two joint operation program and also building the two hedging mechanisms of the coal, electricity, chemical, and new energy, accelerating the installation of key projects. In 2025, the company's cap tax plan was closely centered around coal, about $21.678 billion. And during the reporting period, a total of 19.92 billion yuan was completed, achieving 91.9%. Relevant key projects were steadily advancing. For example, the Libby coal mine is expected to achieve the trial operation by end of 2027. And the Huizhou coal mine is expected to achieve a trial operation by end of 2026. The Wushengji power plant is expected to... in operation in the second half of 2017 and the Yulin Coal Deprocessing Project has entered the equipment installation stage. In the company's capex, plan for 26 was 21.32 billion, an increase of 7.05% compared with 2025. By business segment, the coal segment plans to allocate 7.24 billion. The coal chemical segment, about 8.48 billion. The coal power segment, about 2.18 billion. The new energy segment, about 2.6 billion. The coal mining equipment and other segments about $739 million. Seven, the foundation of safety and environmental protection remains solid. In 25, the company has strengthened the foundation and consolidating the basics, increased the safety protocols and carried out in-depth safety production efforts with no major safety incidents. The company strengthened the pollution prevention and ecological governance and also its long-term mechanism. The regionalization and specialization reform was a deep end and the company maintained a leading position in the top 100 Chinese listed companies and has received an A-level information disclosure evaluation from the Shanghai Stock Exchange for 16 years in a row. 8. The dividend payout policy has continuously been optimized. The shareholder returns remained stable during the 14th of April plan. The company's cumulative dividends were $28.2 billion, an increase of 393%. Since its listing, the company's cumulative dividend has reached $46.1 billion. In 2025, to enhance the investment value of the listed company, The company's board of directors proposed to distribute $5.07 billion in a cash dividend to shareholders in 2025, which is 35% of the company's shareholder's share of profit. After deducting the entering dividend of 2.2 billion yuan already distributed, the cash dividend to the shareholders is 2.87 billion. Number two, main work arrangements for 2026. In 2026, the company will continue to adhere to the general principles of seeking progress while maintaining stability, improving efficiency, and striving to have a good start of the 15th five-year plan. The company plans to produce and sell over 130 million tons of self-produced commercial coal. With 1.45 million tons of polyolefin product and over 2.03 million tons of uranium, under the condition that the market does not undergo significant changes, the company will strive to maintain overall stability of revenue and profit, and also the company will fully ensure a stable supply of energy to fulfill its responsibility of energy supply security, accelerating the transformation and operating of energy service business to ensure the efficient and smooth operation of the entire value chain from production, transportation, sales, distribution, and usage. Second, we will deepen lane management and cost control for the Phase 2 of Yulin chemical project. 4. Will steadily promote the two joint operation programs as well as the Coal Electricity Chemical New Energy Industrial Chain to promote grain development 5. Continuously deepen enterprise reform and mechanism innovation to consolidate the achievements of reform and improvement and to stimulate organizational vitality and talent potential. Number six, we also strengthen the level of digitalization, increasing R&D investment, as well as to cultivate new high-quality productivity with Chinese industry characteristics. And number seven, we would also enhance the ability to prevent and resolve major risks. We would strive to further consolidate the foundation of market value management 8. The company will continuously consolidate the foundation of market value management as well as the level of corporate governance and the quality of information disclosure. The investors and analysts looking back to the 15th Five-Year Plan and 2025 Technical Energy against a complex and dire market environment, we have demonstrated resilience. And in 2026, we'll continue to maintain this attitude to forge ahead and also to reward our shareholders with even greater returns. Thank you. Thank you. Now, please join me to welcome Mr. Zhang Fudao from Shanghai Energy to present the performance in 2025 as well as the work arrangement for 2026. Dear Mr. Gao, Mr. Zhang, distinguished guests, ladies and gentlemen. I will present to you the performance in 25 as well as the plans for 26 and the 15th five-year plan. Firstly, we have intensified efforts to improve quality and efficiency, enhancing the level of operation. The company closely focuses on the one profit and five risk targets. For example, we have embraced some cost down initiatives such as blending inferior coal and reducing old materials. We managed to reduce cost by 500 million and the production cost of raw coal and the cost of electricity cells decreased by 40 yuan per ton and 0.012 yuan per kilowatt hour respectively. We strengthened the management of off-peak electricity usage, saving nearly $13 million in electricity fees. We have also coordinated the use of safety and maintenance funds, reducing costs by $50 million. We have also expanded new customers. We are also proactively adapting to the market. We have also improved the value added to our products. This has led to an efficiency boost of $16.28 million. and also the raw coal calorific value has also increased by 164 kcal. Additionally, the company has also achieved operating income of $7.67 billion, and net profit distributed with shareholders of listed companies of $220 million, total profit of $150 million, total assets of $1,900 billion, and net asset of $12.63 billion, and earnings per share of $0.31, and the asset liability ratio of 45.28%. We have also strengthened the coordination of production, transportation and marketing. Faced with this continued downturn in the coal market and unprecedented production pressures, the company coordinates production, transportation and marketing, optimizing the production organization and also the all-in to stabilize the production capacity. So in 25, the company's annual commercial coal volume is at 6.13 million tons, and refined coal output has also improved to over 4.47 million tons, and also the power generation capacity, 4.24 billion kilowatt hours. Among them, the new energy-based power generation is at 536 million kilowatt hours. And thirdly, we have also solidified the reform and continuously improving the development momentum. Additionally, we have also increased vigorously promoted unified allocation of human resources, deployed 216 personnel between mines, including 87 technical personnels that are operating under the mine. The ratio of the three lines has reached a one by 1.7 by three. And number four, we have also steadily advanced the key projects. The company took key projects as the basis to accelerate the construction of the two joint operation programs or demonstration bases in Xinjiang. And the first mining project of Xinjiang Weizugou coal mines mostly entered the construction stage. Additionally, The construction of a key new energy project has also been accelerated. The 165,000 kilowatt PV project in the subsidence area of a London coal mine has been fully connected to the grid for power generation. The installed capacity of new energy under construction has reached 672,000 kilowatts. The Dachuan power grid renovation was also put into operation. Fifth, the company has continuously strengthened innovation and R&D. The company has continuously increased our commitment to this direction with R&D expense increase of 4.12%. and also has won 24 provincial and ministerial level and industrial level awards with eight achievements reaching a domestic leading or above levels. The company has also obtained 45 national authorized patents including 10 invention patents and key science projects such as a carbon storage space and virtual power plant have been implemented in an orderly manner. The source grid load storage coordinate regulation microgrid project has also been included. 6. The company has paid close attention to shareholder dividends. Since its listing, the company has achieved a cash dividend for 21 years in a row, with a total dividend amount of $3.91 billion, which is 4.46 times the raised funds of $877 billion. In September 2025, the company implemented a 25-year semi-annual cash profit distribution, distributing a total of $65 million. This is the company's second entering dividend. From 2017 to 2024, the company's cash dividend ratio to the net profit attributed to shareholders of the listed company has exceeded 30%. In 2025, on the basis of implementing entering dividends, the company distributed a total of 217 million yuan in cash dividends to all shareholders at a rate of 2.1 yuan per 10 shares, accounting for nearly 100% of the net profit tripled to shareholders. At the same time, the company distributed three bonus shares per 10 shares to all shareholders and increased the share capital by one share per 10 shares through capital reserve. Number seven, the company has continuously strengthened market value management and fully met market expectations. The company accelerated the pace of external development and we have also kick-started the phase one of the 400 megawatt PV power generation project. in Luzici, Qigong City and it has been approved by the board of directors and also the company actively completed the share purchased by some directors or former supervisors as well as senior management and middle-level management purchasing 623,200 shares with a total value of 7.10 million China Coal Energy has increased the holdings of Shanghai Energy shares by 2.43 million shares with a holding ratio of 62.78%. It has continued to introduce active shareholders. For the next step, the company will continue to take value creation as the core, continuously boost investor confidence and promote reasonable reflection of the company's quality and its investment value through standardized governance, stable operation and transparency. Shanghai Energy's 15th 5-year plan. At present, the company has formulated a preliminary 15th 5-year plan. The overall thinking is to resolutely implement the strategic orientation for growing a low-carbon transformation and also leading a core mission of high-quality development in the coal industry. as well as to fully incorporate the ESG concept into the company's strategy and operation. And again, the company is building the two hedging mechanism and remain firm in the 1, 2, 3, 4, 5 development strategy without wavering. That is aiming at creating a new data mine, and we will build a two hedging mechanism based on these two joint projects. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited We will also accelerate the expansion of external coal product from a single fuel to raw materials. We will also focus on researching and developing the technology of coal grading and quality differentiation The three mines and headquarters will remain stable production, increasing the planning of resources in the Hu Xia area and also promote the sustainable exploitation of resources in the headquarters. The two mines in Xinjiang will shift their focus to improving economic benefits, taking a path of differentiation and focusing on improving coal quality and also to achieve a key transformation from production growth to value creation. Power and new energy sector will adhere to our Load-oriented approach, focusing on the load-intensive areas, and also to build an integrated energy park service providers to meet the needs. The headquarters will fully leverage the integrated advantages and actively expand electricity customers. We will use different ways to obtain resources through investment acquisition, as well as building new projects in rural areas to obtain new resources. Comprehensively Boosting the business for the energy service. We will firmly establish the concept of going out for development and also encouraging the high-value added and high-tech content business. Next, work plan for 2026. 2026 is the starting year of the 55-year plan. We will be guided by the central government to implement the spirit of the 20th National Congress of CPC. and also the requirements of the Central Economic Work Conference. We will comprehensively strengthen the Party's leadership and we will implement the new development concepts. We will also strive to improve the quality and efficiency of operation and with a focus on the 1, 2, 3, 3, 6 tasks, as well as accelerating the start of the 330,000 kilowatt PV project in the remaining area of the 1 million kilowatt ecological governance clean energy base in Peixian. Additionally, we would also try to strengthen the three production keys of roof control, system optimization and advanced prevention. Dear guests, ladies and gentlemen, the achievements of Shanghai Energy today could not have been possible without your long-term care, support and help. I would like to express my sincere gratitude. We will take this opportunity. as we will take this performance briefing as a new starting point and carefully listen to the valuable input and opinions of all investors and draw on the experiences of China Cochrane. In the next step, we will continue to optimize the effort of operation, continuously improving our corporate governance and strive to create greater returns for investors. Thank you.

Thank you, Mr. Chung. Let's give the floor to Mr. Sun Kai about the performance of Shinji Energy in 2025 and the working plans for 2026. Distinguished investors, good afternoon. and very pleased to meet with all our friends at this Shinji Energy performance briefing. I would like to extend my sincere gratitude and heartfelt greetings to all the friends from various sectors who have consistently cared for and supported the development of Shinji Energy. Coal Energy Company Limited Coal Energy Company Limited Coal Energy Company Limited had on. Our cadres and staff united as one fully embodying the Shinji spirit of perseverance, resilience, and dedication. We actively responded to multiple challenges including a downturn in the coal market and spot market trading for electricity sales, achieving record results in key operating indicators. For the year, we produced 19.76 million tons of commercial coal and sold 19.69 million tons. We generated 14.2 billion kilowatt hour of electricity and sold 13.4 billion kilowatt hours. We achieved operating revenue of 12.3 billion yuan total profit of 3.1 billion yuan net profit attributable to shareholders of the parent company. of 2.1 billion yuan and EPS of 0.8 yuan for the year. By the end of 2025, total assets reached 53 billion yuan liabilities or 33.7 billion RMB with a gearing ratio of 60%. Owners' equity attributable to the current company was 17 billion yuan, up by 9% year over year. In 2025, it also marked the conclusion of CNG Energy's 14th five-year plan. During this period, all our categories of stock implemented a strategy of enhancing efficiency for existing assets and driving growth through new businesses. And we had seven major achievements. The first is we made historical breakthroughs and transformation. We established a new industrial structure with coal as the foundation, thermal power as the support, and renewable as the direction. The coal foundation was strengthened with commercial coal production up by 1.7 million tons, a growth of 10%. The thermal power business achieved a leap from single-point projects to clusters with controlled install capacity increasing by 5.96 gigawatts, nearly fourfold. The renewable business grew from the scratch, establishing a demonstration base for the group's two integrated business models and now a crucial milestone. Secondly, we made significant improvements in production efficiency. We improved our production layouts and with commercial coal production achieving an average annual growth rate of over 2%. The calorific value of commercial coal was up by 392 kilocal per kilogram, generating over 1.5 billion RMB revenue from quality improvement increases. equipment upgrades improved with all five operational coal mines, passing intelligent acceptance inspection. Third, construction of an intelligent safety protection and control system. We advanced a system of governance and intelligent construction, upgrading intelligent safety systems and disaster early warning platforms, advanced tools like AI intelligent identification and video surveillance. Intelligent safety perception network covering underground and service operations was established, enabling real-time monitoring and intelligent early warning of gas, water hazards, and ground pressure, taking our risk control capability to the next level. Fourth, we achieved leapfrog growth in operating performance. Total assets exceeded 50 billion yuan, nearly doubling total assets and profit, versus the end of the 13th five-year plan. We entered a fast track for both scale and quality. achieving a dual breakthrough in asset and profitability. Its gearing ratio was 63% down by 9.55 percentage points. Labor productivity per headcount reached 724,800 yuan, up by 69%. Fifth, we reaped the fruits from our reform effort. A corporate governance system known as 113511 was established, comprising one charter, one measure, three rules, five lists, one menu, and one completion. We were selected as a demonstration enterprise for grassroots corporate governance. by SESAC. We completed our three-year action plan for SOU reform with high quality. Sixth, we achieved leading progress in tech innovation. We invested 303 million R&D intelligent construction. We undertook three national key R&D projects during the 14th five-year plan period with 10 world-leading technological achievements. We were selected as one of the first batch of pilot enterprises for digital transformation by SESAC and established the industry's first 5G plus smart power plant. We owned our social responsibility over the five-year period. 74.76 million tons of LTA coal were delivered, exceeding national energy supply assurance targets and fulfilling our role as a pillar in ensuring energy security. for 50 million yuan to improve our employees' sense of gain and well-being. We paid 13.67 billion yuan in taxes. We've consistently built an ESG governance system. In 2025, we received the highest A rating for information disclosure and got recognized as an excellent enterprise for national coal industry. Social Responsibility Report released for eight consecutive years. 2026, we are setting clear goals, systematically planning, outlining a grand blueprint for the 15th five-year plan. 2026 is a pivotal year for census energy transformation and development with firm and clear objectives. Comprehensively improved production quality and efficiency with commercial coal production no less than 18.5 million tons and aiming for 19 million tons. Power generation no less than 30 billion kilowatt hours will make efforts to improve operational quality, optimizing the annual budget targets for the five raised indicator will develop at full speed, ensuring timely commissioning of three power plants, 2026 also marks the start of Xinji Energy's 15-figure plan, closely aligning with national requirements for building a renewable and modern industrial system, and Anhui Jiangxi Development Plan and leveraging the advantages of the coal-based full-industrial chain. We've established a 12457 development strategy. The focus will be on the following tasks. First, focusing on stable production and increased sales to build up on our strength in coal. adhering to the development principles of safety, efficiency, green, and intelligence, while improving the quality and efficiency of the existing five operational mines. We will advance the level deepening of Liuzhou Mine, Xinji No. 2 Mine, and Xinji No. 1 Mine, in order to re-develop Liangcun Coal Resources and complete the integration of Coal Zidong and Coal Zixi Resources. We focus on changes in coal production, We will strictly... control the safety and quality of power projects under construction to ensure the timely grid connection and power generation of Shangri-La, Chuzhou, Liulan power plants, accelerate the renewable projects, construct and strengthen the renewable industrial landscape, achieving leapfrog development. Thirdly, we will focus on industrial upgrades to explore emerging industries. Leveraging the resources in coal mining areas and our renewable development. We conduct feasibility studies combined with water electrolysis, hydrogen production, and CCUS for thermal power. Centered on the strategy of building a new energy system and based on the regional industrial parks and facilities, we will promote projects for substituting clean energy in regional heating and achieve industrial upgrades. Innovation-driven development to empower high-quality development. Expand intelligent control applications, data lake integration, and standardized governance. Plan for the construction of high-value AI plus scenarios creating a smart support system covering production safety and management. We will accelerate the construction of national key labs, establish experimental environments for technologies such as unmanned intelligent mining, intelligent rapid tunneling, and adaptive and group control deep mine equipment. Fifth, we will focus on the three defense lines and solidify the foundation for stable development. Safety is the lifeline and Environmental Protection is the bottom line and Compliance is the red line. We will strengthen these three defense lines. We focus on strengthening the enterprise through talent. We will improve recruitment models, systematically maintain normalized recruitment, and try to meet the labor needs of grassroots units. We improve the compensation system, break the equal pay-for-all approach, and effectively safeguard the income of frontline workers. We conduct scientific analysis, promote competitive selection for positions, and build a talent pipeline for cadres. Seventh, we focus on party building leadership to forge strong entrepreneurship policies. We will always adhere to CPC's leadership over SOEs, ensuring high-quality development with party building. We deepen the comprehensive governance of the party, consolidate the political responsibility, improve party building quality, advance the scientific, standardized, systematic construction of party building, promote the deep integration of party building with production and operations. Looking back, we have overcome obstacles and achieved remarkable results. Looking ahead, we are full of confidence. 2026 is a crucial transitional year for Shenzhen Energy's transformation. We will maintain an unrelenting spirit, strengthen our confidence, forge ahead, and work diligently. We will make every effort to accomplish all annual targets and write a new chapter for the company's high-quality development during the 15th February plan. We will keep improving quality efficiency, supporting market cap growth through solid operations, and rewarding all shareholders and investors with firm performance. I wish all investors smooth work, good health, and abundant rewards. Thank you.