China Coal Energy Company Limited ($1898)

[Audio Gap]and we returned to share 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. Synge Energy was listed on the Asia market in December 2007 and became a holding subsidiary of China coal in 2h'6, mainly both in coal electricity and renewables. Second, the key achievements during the 14th 5-year plan period and development plan for the 15 5-year plan. During the 14th 5-year plan period, China Coal and listed subsidiaries diligently implemented the requirements from SASAC. We adhere to the general principle of pursuing progress, well insurance stability, enhancing efficiency from existing assets and driving growth through new businesses pursued 2 integrated business models established and refined governance systems, innovative information disclosure, strengthen IR management, took a matter measures to enhance market cap and properly can bat confidence while stabilizing expectations. We delivered remarkable treatments characterized by steady growth of structural optimization. The key features are First, focusing on core businesses with enhanced core competitiveness with the mission of insurance national energy security. During the 14th 5-year plan period we fulfilled medium- and long-term coal contracts of 730 million tonnes reserved as 160,000 tonnes of fertilizers supplied nearly 10 million tonnes of urea and provided over RMB 110 billion in benefits to society. We completed investments exceeding RMB 200 billion and paid total taxes of over RMB 180 billion contributing to other economies. We optimized our industrial structure. Total coal production capacity reached 310 million tonnes per year, up by 22% 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 7 gigawatts, achieving leap frog development. Significant progress was made in the 2 integrated business models through coordinated efforts in resource and marketing, we leverage the synergies of the full co-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 to 400 billion in 2020 to over RMB 600 billion. Production volumes of major products achieved substantial growth since 2023 coal production has remained above 240 million tonnes, power generation went up by over 80%. And the output of coal chemical was above 10 million tonnes, maintaining a safe, stable, long-term full capacity and optimal operating status. The average annual operating revenue during the 14th 5-year plan period was up by 80% compared with the previous period. profitability was enhanced with average annual total profit exceeding CNY 40 billion. Thirdly, we focused on value creation, achieving quality improvement for listed subsidiaries. During the 14th 5-year period, China Coal Energy achieved an average annual total profit of 30 billion, up by 53% versus 13th 15-year period with market cap growing by approximately 200%. We consistently rank among the top of the China top 100 listed companies and received the Shanghai Stock Exchange A rating for information disclosure for 16 consecutive years. Shanghai energy focused on strengthening its fundamentals, making efforts in areas such as system optimization, lean 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. [ Syndi ] Energy promoted transformation and upgrading, advancing the integrated development of coal and power during the 14th 5-year planets. Installed thermal power capacity went up by [ 298% ]. And from 2 gigawatts at the end of the 13 5-year period to 7.96 gigawatts at the end of the 14 5-year plan period, improving the effectiveness of the 2 integrated business models. Its average annual operating revenue increased with both average annual profit and asset growing. During the 14-year period, the 3 listed subsidiaries cumulatively paid out dividends of CNY TWD 30.9 billion and up by 36% versus the previous 5-year period. By the end of the 14th 5-year plan period, the combined market cap of the 3 listed subsidiaries reached CNY 176 billion. Fourth, we focused on 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, promoted application of clean production and energy saving emission reduction technologies carried out minoclogical restoration led reclamation, biodiversity protection and improved ecological environment in mining areas. [indiscernible] each listed subsidiary improved its ESG governance system and advances specialized work such as climate change and double materiality analysis. Since 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 way. We established a national Natural Science Foundation of China Enterprise Innovation and Development joint fund the field of core energy, the national key research and development program, disruptive technology, innovation, key project energy, carbon joint imitative reorganized the National Key Lab of digital and intelligent technology for unmanned coal mining, established energy low carbon innovation center of the Beijing, Tianjin [ Kobe ] National Technology Innovation Center, got approval for the construction unit of the central enterprise industrial green, low-carbon util tech stores and a leading technology-based enterprise. We're focused on national strategic needs. The development of original technology and the strategic emerging industries, the group increased our R&D spend by 2.2x compared with 13th 5-year period. Breakthroughs in key technologies were advanced, including special catalysts for polypropylene units, filling the technology gaps. During the 15th 5-year plan period China Coal and China Coal Energy at our deal will be guided by the Xi Ji Ping sought on socialism with Chinese characteristics for a new era. Fully implement the spirit of the 20th National Congress, the CPC and its subsequent preliminary sessions fully implement the new development philosophy deeply implement the renewable security strategy 4 revolutions and on cooperation respond to the major strategic decision of carbon peaking and carbon neutrality, fulfill our mission of insuring national energy security strengthening SOEs and state-owned capital and leading the high-quality development of coal industry, adhering to the dual wheel will drive the efficiency gain of existing assets and transforming incremental assets practice. The 2 integrations model build a 2 hedging mechanism against the downward risk of the external market for own coal and against future carbon emission constraints create and industry chain of coal electricity, chemicals, renewable with China Coal characteristics, expand in emerging industry. Shanghai Energy will leverage its 3 major bases in [indiscernible] as strategic pillars to strengthen this coal power generation and renewable and integrated energy services. It will accelerate innovation, industrial transformation, achieving complementary advantages and tiered succession among its basis to become a benchmark for China Coal Energy's transformation in the Delta region. Shinji Energy will focus on the Anhui [ Janci ] region, aiming to create a CNY 100 billion level energy supply industrial cluster. And in East China, it will promote co-development of coal, thermal and renewable power with 7 major industrial bases in Hainan [indiscernible], 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. Third section, industry analysis. 2026 marks the start of China 15 5-year plan. 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 macro economy, the world is undergoing accelerated changes with increasing complex, increasingly complex and intense great power competition affecting domestic development. At the same time, China has mismatched supply and demand and many risks in hidden dangers in key areas. However, the fundamental supporting China's long-term positive economic outlook, including a stable anomic foundation, numerous advantages, strong resilience and great potential remain unchanged. Supported by serious macro policies, especially in the 15, 5-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 close role out of primary energy source and a safety net is more prominent. Considering international geopolitical tension, the supply and demand of 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 15 5-year period, we're still in strategic window of opportunity. The foundational role of coal and thermal power will be strengthened. A new power system was renewable as the mainstay is being accelerated. Technological and industrial innovation is integrating, and a unified national market is advancing. This period presents both opportunities and challenges as well as pressures and drivers. Facing this new landscape, China Coal Energy business is the following advantages: First, resource and scale. Abundant coal resources and for production capacity, strong internal synergies, a solid development foundation and considerable industry inflows; 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 co 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 2026. In 2026, China coal will adhere to the general principle of pursuing progress while ensuring stability, Efficiency gains from existing assets and growth from new businesses focused on our core business, deep inform and innovation, accelerate the green transformation, coworked development and safety, strengthen core focus and competitiveness, promote high-quality development and contribute ensuring national energy security and achieving a good start for the 15 5-year plan. First, we will scientifically optimize production organization develop potential and enhanced efficiency. We'll carry out special actions to improve quality and efficiency, strength and refined management and cost control. Second, we will focus on project development and advanced strategy implementation. We prepare the 15 5-year plan, develop the coal electricity, chemicals renewables business, strengthening the modern industrial system, create new growth engines and enhance the 2 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, 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, strengthening investor communication and maintain overall stability in operational performance, barring significant market changes, Difference. The development of China Coal is separable from your trust and support. We will always call the principle of openness, transparency and mutual benefit to continue to improve our management to tolerate green transformation and innovation and strive to become a trustworthy outstanding of the company with long-term investment value. We firmly believe that with the joint efforts of all shareholders, investors in 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, Mr. Cao. 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 -- so dear investors and analysts, I will begin with the performance presentation of clinical Energy. Unless otherwise specified, this is subject to the Chinese accounting standard. Keneco Energy has resolutely implemented incisions and plans of the Central Committee and firmly grasped the theme of high-quality development and earnestly practice development strategy of improving efficiency in existing operations and transforming new ones. It has accelerated the advancement of 2 joint operations and actually building the 2 hedging mechanisms, continuously enhancing development resilience. First, high core output and stable sales with enhanced efficiency during the 14 5-year plan the company resolutely showed the mission of ensuring energy supply and carrying out in-depth benchmarking of refined management. We have achieved a total of 639 million tonnes of commercial coal output an increase of 43% compared with a 13 5-year plan and a total of 1.4 billion tonnes of commercial coal sales. an increase of 52.7% compared with a 35-year plan period. In '25, 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 a source, we have increased the mining area by 18%, optimizing the output. However, due to stricter safety supervision and changes in logical conditions, the company's core output decreased. The total commercial core output was approximately 135 million tonnes, a decrease of 1.8%, but still at a relatively high level in our history. The company adhered to the general tone of a stable and refined sales, strengthened the coordination between production and sales and deeply implementing the marketing strategy of a segmented product and segmented markets. It innovatively launched a new trading model such as virtual coal mines and maintain the sales pace under the background of deep pressure in the industry. The fulfillment rate of the medium long-term contracts for thermal coal exceeded 90% fully playing a railroad to stabilize in energy supply. In '25, the total commercial co-sales were 256 million tons, a decrease of 10.2%. And the self-produced commercial coal sales were 136 million tonnes, a decrease of 0.9%. And the purchase coal sales were 109 million tonnes, a decrease of 23%. The average sales price of self-produced commercial core was CNY 485 per tonne, a decrease of 13.7%. Among them, the sales price of the thermal coal was 448 , a decrease of 10.2%. The sales price of the coking coal was 949, a decrease of 24.3%. The sales price of purchased car was JPY 492 per ton, a decrease of 15.6%. Second, stable and refined sales in coal chemical industry and rapid growth in new energy business. During the 14th 5-year plan, the company's coal chemical business maintained very robust curve. The total output of major coal chemical product was 28.9 million tonnes, an increase of 49.2% compared with the 13 5-year plan. The total sales volume was 29.5 million tonnes, an increase of 49.9% compared to the 13 5-year plan. The total installed capacity of the wholly owned and controlled coal-fired power plants under construction in operation was 53.9 million kilowatts, an increase of 58%. The total installed capacity of new energy has also reached a 12 million kilowatts growing from scratch. In '25, the company's core chemical business adhered to the standard operations as strengthening basic management and successfully completed the national commercial reserve tasks. The total output of major product was a 6.06 million tonnes, 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 tonnes, an increase of 14.1%. The output of methanol was 1.95 million tonnes, an increase of 13%. And the output of ammonia nitrate was 0.58 million tonnes, an increase of 1.9%. The company continuously improves its marketing network, flexibly adjusted sales strategies, optimizing the layout and flow direction. In '25, the total sales volume reached a 6.356 million, an increase of 8.8% and Specifically, the sales volume of polyolefins was 1.381 million tonnes, a decrease of 9%. The sales of urea was 2.433 million tonnes, an increase of 18.9%. The sales volume of methanol was 1.93 million tonnes, an increase of 14.4%. And the sales volume of ammonia nitrate was 0.58 million tonnes, an increase of 3%. The sales price of the polyolefin was 6,337 per tonne, a decrease of 9.4%. The sales price of urea was 1,750, a decrease of 14.4%. The price of methanol was [ 1,037 ] per ton, a decrease of 1.1% and the price of ammonia nitrate was 1,776 per ton, a decrease of 13.5%. Thirdly, upgrading of coal mine equipment services and the prominent value of a financial business. During the 14 5-year plan, the coal mine equipment business promoted the improvement and expansion of joint storage and supply and detergent transformation, achieving a total 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 management maintaining an asset scale of over CNY 100 billion, and net profit continued to grow steadily. In '25, the coal mining equipment business will accelerate its transformation towards Intelligent Manufacturing plus modern services, achieving a total output value of CNY 9.21 billion. We have also obtained international orders worth CNY 1 billion, an increase of 22.9%. We have also been highly rated by SASAC Fourthly, in-depth promotion of lean management. During the 14th 5-year plan, the company deeply implemented standard cost management and all production centers established cost control mechanisms. In 25, in the face of a CNY 77 per tonne decrease in average selling price of self-produced commercial coal, the company deeply carried out the lean management approach. The unit sales cost of major product decreased significantly, In 25, the unique sales cost of self-produced commercial core was CNY 251.5 per tonne, a decrease of JPY 30.2 per tonne or 10.7%. Specifically, material costs decreased by CNY 5.5 billion 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 CNY 1.26 or 11.6%. Transportation and port projects 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 tonne of coal. Additionally, due to the need for safety production and future production continuation, the use of there's an increase of unit depreciation and amortization costs. And in 2025, due to the decline of the purchasing price of raw coal and fuel coal, the unit sales cost of some product decreased year-on-year, specifically the unit sales cost every polyolefin was 6,136, a decrease of 1.6%. The sales cost of urea was 1,297 per tonne, 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 ammonia nitrate was CNY 1,412 per tonne, an increase of 7.4%. Number five, the company maintained a stable business performance and continuously optimizing the financial structure. During the 14th 5-year plan, the company strengthened the operational management focusing on improving quality efficiency. We have reached an annual revenue of CNY 198.2 billion, an increase of 91.8%. And the average annual profit was CNY 30 billion, an increase of 243%. The weighted average return on net asset increased by nearly 6 percentage points compared to the end of 5-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 attributable to parent company of the past 5 years was 88.7 billion, laying a solid foundation for the long-term development. In '25, because of the decline in the market price of coal and chemical products, the company achieved a revenue of JPY 8.1 billion, a year-on-year decrease of 21.8%. The total profit was CNY 26.6 billion, a year-on-year decrease of 15.7%, and -- the net profit attributable to parent company was CNY 17.9 billion year-on-year decreased 7.3%. The comprehensive GP margin was 27.5%, an increase of 2.6%. The basic earnings per share was CNY 1.35. 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 CNY 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 unit sales cost of self-produced commodity cost decreased increasing profit by CNY 4.16 billion. Second, the reduction in taxes and surcharges increased the profit by CNY 0.8 billion. Thirdly, the power business increased the profit by CNY 0.7 billion. Fourthly reduction in period expenses increased the profit by CNY 0.53 billion. Fifth, the reduction in impairment provisions increased the profit by CNY 0.426 billion to JPY 6 billion. The main profit decrease in factors were: first, the decline in self-produced commodity co-pricing by [ 10.5% ]. Second, the main co chemical enterprises reduced profits by 0.36 billion. Thirdly, the decrease in net sales volume of self-produced commodity coal reached a profit -- reduced profits by [ 0.3 ] billion. Fourthly, the reduction in investment income reduced profit by CNY 0.34 billion. Fifth, the decrease in nonoperating income and expense reduced profits by 0.087 billion. Number six, the company steadily advances to join operations and enhance the momentum for development. During 14, 5 plan, the company accelerated the 2 joint operation program and also building the 2 hedging mechanisms of the coal electricity, chemical and new energy, accelerating the installation of key projects. In 2025, the company's CapEx plan was closely centered around the call. about 21.67 billion. And during the reporting period, a total of 19.9 billion was completed, achieving 91.9%. Relevant key projects were steadily advancing. For example, the [indiscernible] mine is expected to achieve the dry operation by end of 2027. And the [indiscernible] coal mine is expected to achieve a trioperation by end of '26. The [indiscernible] power plant is expected to in operation in the second half '27 and the [indiscernible] deprocessing project has entered the equipment installation stage. And the company's CapEx plan for '26 was CNY 21.32 billion, an increase of 7.5% and compared with 2025. But basis segment, the coal segment plans to allocate 7.24 billion, the Co Chemicals segment, about 8.48 billion. The coal power segment be 2.18 billion, the new Energy segment, about CNY 2.6 billion, the co-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 is at long-term mechanism the regionalization and specialization reform was deepend. And the company maintained a leading position in the top 100 Chinese listed companies and has received that A-level information disclosure evaluation from the Shanghai Stock Exchange for 16 years in a row, The dividend payout policy continuously being optimized. The shareholder returns remained stable. During the 14 5-year plan. The company's cumulative dividends were JPY 28.2 billion, an increase of 393%. Since its listing, the company's cumulative dividend has reached 46.1 billion. In '25 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 '25, which is 35% of the company's shareholders' share of profit. After deducting the interim dividend of 2.2 billion already distributed, the cash dividend to the distributed to the shareholders is 2.87 billion. Number two, main work arrangements in '26, 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 15-year plan. The company plans to produce and sell over 130 million tonnes of sale produced commercial coal, with 1.45 million tonnes of polyolefin products and over 2.03 million tonnes of urea under the condition that the market does not undergo significant changes, the company will strive to maintain over 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. And second, we will deepen lean management and cost control for the Phase II of Yuling chemical project. And number four, we steadily promote the 2 joint operation programs as well as the coal electricity chemical new energy, industrial chain to promote a green development. Number five, 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 strengthened the level of utilization, increasing R&D investment as well as to counter new high-quality productivity with Chinese industry characteristics. And number seven, we will also enhance the ability to prevent and resolve major risks we will strive to further consolidate the foundation of market value management. And number 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 15-year plan and 2025. [indiscernible] 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. John Futao from Shan Energy to present the performance in '25 as well as the work arrangement for '26.

Mr. Cao, Mr. Chan distinguished ladies and gentlemen, I will present to you the performance in 25 as well as the plans for 26 and the 15th 5-year plan Firstly, we have intensified efforts to improve quality and efficiency, enhancing the level of operation. The company closely focused on the 1 profit and 5 rate targets. For example, we have embraced some cost-down initiatives, such as brand lending inferior coal and reducing on materials. We managed to reduce cost by 500 million, and the production cost of all coal and the cost of electricity sales decreased by 41 per tonne and 0.01 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 a safety and maintenance funds reducing cost 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. And this has led to an efficiency post of 16.28 million. And also, the Raco calerific value has also increased by 164 Kiko. Additionally, the company has also achieved operating income of CNY 7.67 billion and net profit attributable to shareholders of listed company 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 0.31 and the asset liability ratio of 35.28%. 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 be all in to stabilize the production capacity. So in; 25, the company's annual commercial core volume is at 6.13 million tonnes and refined coal output has also improved to over 4.47 million tonnes and also the power generation capacity 4.24 billion kilowatt hours. Among them, the power -- new energy based power generation is 536 million-kilowatt hours. And thirdly, we have also solidified the reform and continuously improving the development momentum. Additionally, we have also increased rigorously promoted unified allocation of human resources deployed [ 2016 ] operating mines, including 87 technical personnel that are operating under the mine. The ratio of the 3 lines has reached a 1 -- by [ 1.73 ]. And number four, we have also steadily advance the key projects. The company took key projects as the basis to accelerate the construction of the 2 joint operation programs or demonstration basis in Xinjiang. And the first mining project of Xinjiang, [ Wego ] 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 [ 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 [ Doran ] power grade renovation was also put into operation. And 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 potential and [indiscernible] level and industrial level awards with 8 achievements reaching a domestic leading or above levels. The company has also obtained a 45 national authorized patent secret invention patents and key science projects such as carbon storage space and virtual power plant have been implemented in orderly mannner. The source grid load storage coordinate regulation microgrid project has also been included. Number six, 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, 4.46x to raise the funds of 877 billion. In September '25, the company implemented a 25 semiannual cash profit distribution, distributing a total of 65 million. This is the company's second interim dividend. From 2017 to 2024, the company's cash dividend ratio to the net profit attributable to shareholders of the listed company has exceeded 30%. In '25, on the basis of implementing interim dividends, the company distributed a total of 217 million in cash dividends to all shareholders at a rate of 2.1 per tonne shares, accounting for nearly 100% of the net profit attributable to shareholders. At the same time, the company distributed 3 bonus shares per 10 shares to all shareholders and increased the share capital by 1 share per share through capital result. 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 kickstarted the Phase I of the 400-megawatt PV power generation project in [indiscernible], and it has been approved by the Board of Directors. And also, the company actively completed the share purchase 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 Shana 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 the investor confidence and promote a reasonable reflection of the company's quality and its investment value through standardized governance, stable operation and transparency. Second, Shanghai Energy's 15th 5-year plan. At present, the company has formulated a preliminary 15 5-year plan. The overall thinking is to resolutely implement the strategic orientation for growing a low carbon transformation and also leading a coronation of high qualitative [indiscernible] in the core industry. as well as to fully incorporate the ESA concept into the company's strategy and operation. And again, the company is building the 2 hedge mechanism and remain firm in the 12345 development strategy without wavering, that is aiming at creating a new data mine. And we will build a 2 hedge mechanism based on these 2 joint operation programs, creating 3 major bases in Changshu, Gansu and Shanxi and [ Shinhang ], adhere to the regionalization integration principles and also strengthened the 5 coordinations of safety, stability, improving efficiency of existing assets and transforming new assets. We will also accelerate the expansion of external coal product from a single field to raw materials. We will also focus on researching and developing the technology of grading and quality differentiation. And the 3 mines and headquarters will remain stable production, increasing the planning of resources in Husha area and also promote the sustainable exploitation of resources in the headquarters. The 2 mines in Xinjiang will shift their focus to improving economic benefits taking a part of the differentiation and focusing on improving core quality and also to achieve a key transformation from production growth to value creation. Power and new energy sector, we will adhere to our load-oriented approach, focusing on the load intensive areas and also to build an integrated energy service providers to meet the needs. The headquarters were fully leveraged the integrity advantages and actively expand electricity customers. We will use different ways to obtain resources through investment and acquisition and as well as building new projects in the real 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. 26 is the starting year of the 15 5-year plan. We will be guided by the central government to implement the spirit of the 20th National Congress of CPC and also requirements of the Central Economic Work Conference. We will comprehensively strengthen the party's leadership, and we really implement a new development concepts. We also strive to improve the quality and efficiency of operation and with a focus on the 12336 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 a [indiscernible]. Additionally, we'd also try to strengthen the 3 production case of roof control system modernization and advanced prevention. Dear guests, ladies and gentlemen, the achievement of Shanghai Energy today could not have been possible without your long-term care support and help. I would like to express my see 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 [ Coke ]. 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. [ Zheng ]. Let's give the floor to Mr. Sun Kai about the performance of Sing Energy in 2025 and working plans for 2026.

Distinguished investors, good afternoon. I'm very pleased to meet with our friends and the Sing Energy performance briefing. I would like to expand my sincere gratitude and heartfelt greetings to all the friends from various sectors who have consistently cared for and supported the development of Sing Energy. We forged ahead with innovation achieving breakthroughs against challenges, marking a successful conclusion to the 14 figure plan. In 2025, it was a critical period for [indiscernible] Energy as we navigated challenges and tackled difficulties head on. Our casualties and staff united as 1 full embodying the shiny spirit of perseverance, resilience and dedication. We actively responded to multiple challenges, including a downturn in the coal market and spot market trading for electro study sales achieving record results in key operating. For the year, we produced 19.76 million tonnes of commercial coal and sold 19.96 million tonnes. We generated 14.2 billion kilowatt hour of electricity and sold 13.4 billion kilowatt hours. We achieved operating revenue of CNY 12.3 billion, total profit of CNY 3.1 billion net profit attributable to shareholders of the parent company of 2.1 billion, net EPS of CNY 0.8 for the year. By the end of 2025 total assets reached CNY 53 billion liabilities or CNY 33.7 billion with a gearing ratio of 60%. Owners' equity attributable to the current company was a 17 billion, up by 9% year-over-year. In 2025, also marked the conclusion of [indiscernible] Energy's 14th 5-year plan. During this period, our categories and staff implemented the strategy of enhancing efficiency for existing assets and driving growth through new businesses, and we had major achievements. The first is we made historical breakthroughs in transformation. We established a new industrial structure with Colas the foundation, thermal power as to support and renewable as the direction. The coal foundation was strengthened with commercial coal production up by 1.7 million tonnes, growth of 10%. The thermal power business achieved a leap from single point projects to clusters with controlled installed classily increasing by 5.96-gigawatt, nearly fourfold. The renewable business grew from the scratch establishing a demonstration phase for the group's 2 integrated business models. And now we have 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 is up by 392 million kilo cal per kilogram, generating over RMB 1.5 billion revenue from quality improvement, Equivalent upgrades improved with all 5 operational coal mines passing intelligent acceptance inspection. Third, construction of an intelligent safety protection in a control system, we advanced a system of governance and intelligent construction upgrading intelligent safety systems at disaster early warning platforms, advanced tools like AI intelligent identification of 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 CNY 50 billion, nearly doubling total assets and profit versus the end of 13 5-year plan. We entered a fast track for both scale and quality, achieving a dual breakthrough in assets and profitability. Gearing ratio was 63%, down by 9.55 percentage points. Labor productivity per head count reached 724,800, up by 69%. Fifth, we reaped the fruits from our reform efforts, a corporate governance system known as [ 113511 ] was established comprising 1 charter, 1 measure 3 rules, 5 lists, 1 menu and on completion. We were selected as Demonstration Enterprise for Grassroots corporate governance by [ Casa ]. We completed our 3-year action plan for SOU informed with high quality. Sixth, We achieved a real progress in tech innovation. We invested RUB 33 million intelligent construction. We under took 3 national key R&D projects during the 5-year plan period with 10 world-leading technological treatments. We were selected as 1 of the first batch of pilot enterprises for digital transformation by SASAC and established the industry's first 5G+ smart power plant, Seventh, we owned our social responsibility over the 5-year period, some 74.76 million tonnes of LTA coal were, exceeding national energy supply assurance targets and fulfilling our role as a pillar ensuring energy security we spent 50 million to improve our employee sensor gain and while being paid 6 billion, 7 billion in taxes. We've consistently built on the ESG governance system. In 2025, we received the highest A rating for information disclosure and got recognized as an excellent enterprise for a national coal industry. social responsibility report release for 8 consecutive years. 2026, we are setting clear goals systematically planning, outlining a brand footprint for the 15 5-year plan. 2026 is a pivotal year for [indiscernible] energy transformation and development with firm and clear objectives. comparably improve production quality and efficiency with commercial coal production or less than 18.5 million tonnes and aiming for 19 million tonnes, power generation no less than 30 billion-kilowatt hours will make every effort to improve operational quality, optimizing the annual budget targets for the 5 raise indicator will develop at full speed, insuring timely commissioning of 3 power plants. 2026 also marks the start of [indiscernible] Energy's 15th 5-year plan closely aligning with national requirements for building a renewable and monitoring industrial systems. And we don't see development plan and leveraging the advantages of the coal-based for industrial chain. We have established 1245 development strategy. The focus will be on the following tasks: First, focusing on stable production and increased sales to build up on our strengthening coal, adhering to the development principles of safety, efficiency, green and intelligence while improving the quality and efficiency at the existing 5 operational mines, where we'll advance the level deepening of Ludeman the #1 line or the way will be on in coal resources and complete the integration of [indiscernible] close these resources. We focus on changes in core products and categories to enhance our competitiveness. Second, we will focus on the 2 integrated business models to fully advanced new project construction, We will strictly control the safety and quality of power projects under construction to ensure the timely grid connection and power generation of [indiscernible] power plant accelerate the renewable projects, contract 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 renewables element, 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 and regional heating and achieve industrial upgrades. Fourth, we focus on innovation-driven development to empower high-quality development. We will expand intelligent control applications, data lake integration and standardized covenants. We will 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 unmet intelligent mining, intelligent rapid tunneling and adaptive and control deep mine equipment. Fifth, we will focus on the 3 defense line and solidify the foundation for a stable development. Safety is the lifeline and environmental protection is the bottom line, and compliance is the red line. We will strengthen these 3 defense lines. Sixth, We focus on strengthening the enterprise through talent. We will improve recruitment model systematically maintain normalized recruitment and try to meet the labor needs of grass roots units. We improved 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 positions and build a talent pipeline for [indiscernible]. Seventh, we focus on party building leadership to forge strong entrepreneurship. We will always adhere to CPC's leadership over SOEs, ensuring high-quality development with party building. We've deepened the comprehensive governance at the party, consolidate the political responsibility improve building quality, advance the scientific standardized systematic construction of party building, promote the deep integration perioding with production and operations. Looking back, we have overcome obstacles and achieved remarkable results. Looking ahead, we're full of confidence 2026 as a crucial transitional year for Syngene's transformation. We will maintain unrelenting spirit to strengthen our confidence for deadenworked diligently. We'll make every effort to accomplish all annual targets and write a new chapter for the company's high-quality development during the 15 5-year plan. We will keep improving quality efficiency, supporting market cap growth as the solid operations and rewarding all shareholders and masters with strong performance. I wish all investors a smooth work, good health and abundant rewards. Thank you.

Thank you, Mr. Sen. Now we will open the floor for Q&A. [Operator Instructions].

Mr. Jan and management from China Coal. I'm analyst from CITIC Securities. I have 2 questions about core chemical. Since the conflict in the Middle East, people are concerned about the pricing trend of core chemicals. So what will be the trend now compared with the last year for core chemical pricing? And the second question is about the polyolefin business. So last year, the production and sales volume of polyolefin has dropped. Do you think that this year, the production and sales would rebound? And if that's true, would that lead to better economies of scale and thus lowering the unit cost of sales for Polyolefin?

Okay. I would like to ask Ms. Lee from the marketing to address this question.

Okay. Thank you for the question. The international conflict has indeed an impact on the chemical products as well as on energy. So for China Coke Group, the pricing of our urea and polyolefin has also been affected, even though recently, it started to rebound to a more reasonable level. We have made some price comparison on March 31. So urea pricing is basically flat with the same period last year. So in 2025, the urea pricing was relatively stable. So it went down, but it has rebounded. This has something to do with the supply control as well as additional export. For polyolefin, the pricing is more volatile. The price is like a 10% higher than last year. That's for the polyethylene. While for the propylene, the price is actually still higher, is like CNY 1,000 higher than same period last year, even though recently, both futures and spot prices are falling. And also, I think that in the Chinese market, the capacity and the supply abilities are relatively sufficient. So in 2026, there are a lot of new capacity. In the '26, the price would be more reasonable, but it won't drop a lot because, indeed, this conflict has a huge impact on the energy sector.

Okay. So regarding the production and sales volume of polyolefin, I'd also like to ask Mr. Shi from the core chemical, to address this question, okay?

So in 2025, we have 2 sets of our devices are under major maintenance or overhaul. So touching by the current circumstances, reaching a full load or operation is very probable. So this year, we have a plan the production volume of 1.45 million tonnes. And I think we are able to go beyond that by around 60,000 tonnes. And secondly, after the device overhaul, the overall operation is becoming better. So that means the cost will be lower. And that also extends to next year. So that means we'll have better outcomes.

Thank you. gentlemen in the first row,

Okay. Thank you, Mr. Cao and also thank all management from China Call. I'm [ Sharon ] from the Jan Rivet. I have some questions. So firstly, a question to Mr. Gao regarding the 15-year plan of the group. I understand that in the 14 5-year plan, the group has a lot of investment in cochemicals. And people are also interested to find more about the directions of our investment and the volume guidance for the 15 5-year plan for co chemical as well as whether the dividend payout if the China Co-Group would also change with the changes of the CapEx? So that's my first question. And the second question is about -- we know that in Anhui Province, the electricity price is trending down this year. And actually judging by the performance last year, the integration advantage is quite significant. Revenue stream was quite stable. So after the placement of several power plants, what would be the prospect for like the power generation segment in '26 and '27? That's my second question. Last question is about market cap. As mentioned earlier, the company will continue to do more in the capital market. So the current -- the AP ratio is like still lower than 1. So what would be the plans to improve the price to book ratio or any other additional plans in the capital market?

Thank you for the question. So this is about the core chemicals, it's true that we've been paying close attention to the segment. The chemical business is one of our main businesses. So apparently, we need to be aligned with the national strategy to remain committed and unwavering in this direction. We are paying close attention to a few initiatives. We have some production bases in Mongolia and the [indiscernible] province. We are also interested to find more about the opportunities in [indiscernible] province and Xinjiang for some like early technical investment or some [indiscernible] project. And second thing would be the coal-based LNG. And we are also engaging some research in North China because for coal chemical business, it has a high requirement for the quality of the coal as well as the maturity of the chemical technology as well as the equipment readiness. So we are also considering these aspects. And thirdly, would be coal-to-oil. As we know, because of this international insurgence -- now China, we have like 77% of like a dependency on the foreign countries and also over 40% of gas dependency on foreign countries. So from a strategic point of view, that the nation is trying to improve the supply cavity. In particular, in light of the current international conflict. So we have also made some attempts in the coal-based oil. But the profit margin is not as high as a coal-based methanol or coal-based olefins, If the technology readiness is not good enough, then it might lead to loss making. So we are engaged in the R&D in this area. This is also actually our forte. So for China Coal Group, we've been accounting in this in these areas for many years. So these will be the main directions. And the other thing, as mentioned earlier in our prior presentation, the coal-based hydrogen and then using these hydrogen to generate grain and alcohol, we are making some experiments in our orders until technology becomes more mature, then we might to invest more in this direction. As to how to land this project, that will be dependent on the state's industry policies as well as our technology maturity and also the core quality and whether it matters with our know-how in the chemical segment. So we will try to seize the right timing, and we are currently engaged in some preliminary research. But please rest reassured that coal and the power and chemical and new energy, these are the main businesses for China Coal Group. And we would steadily step forward in these areas. Thank you.

Thank you for your question. I'd like to address the question about the commissioning of a power plant. So the last year, the linking power plant, the power capacity is at 14.2 billion. And this year, for the [indiscernible] these new power plants, our electricity, generally city would increase by [ 30 ] billion. So I think that means the profit margin for the power business would be better. And also, the power business is also correlated with the coal cost. 75% of the cost is actually the call. And because of our 2 joint operation programs, we're able to leverage this advantage. So our power plants is very resilient against the risk. And certainly, for our power plants, I think we have over 1 million capacity and over 660,000 capacity. So these are very ideal for the spot market transactions. So I think the profit prospect of the power segment is something that we could look forward to. Now move to Shanghai Energy. Let me briefly address the questions. So for Shanghai Energy, we've been driving these initiatives. There are still some gaps from our targets. So in 2026, we aim to address the following initiatives. Firstly, to improve our operational ability, which is like the value of a listed company. So that means we would stabilize our production capacity to improve the quality, to optimize the product mix and also the production efficiency, And it were to boost our operation. And secondly, from a perspective of development, we would also accelerate the cadence mostly in three directions. Firstly, for the coal industry. In principle, we would want to stabilize the coal output. So capacity will be controlled within the number 709. Regarding the quality, we would also try to speed up like the contribution ratio from external projects, including the Xinjiang project, we need to speed up the construction of the Xinjiang project and also improving the quality of coal output. And also, we wanted to speed up the construction of our facility in Gansu province and [indiscernible] province. And at appropriate timing, we would announce more details to the capital market. In the meantime, for our power business at headquarter level, we would also engage in some major expansions. As you probably have noticed, we had like this project, and we would have even more MA projects for new energy as well as some of our self-developed projects. And all of these will be carried out. At the same time, our ESS project is also in the validation stage. And maybe very soon, we're able to disclose more details. And also regarding the construction of the new power system, like the distribution network as well as the microgrid, we are working on this agenda. At the same time, we have also a new direction that is a low carbon and green initiatives including making use of a geothermal energy as well as the recycling of the coal ashes or co powder. So all of these are on the right track. So we aim to leverage, there's some development to drive the market value. And thirdly, we would also strengthen the communication with the capital market so that our investors would understand and appreciate the value of Shanghai Energy. At the same time, we are also actively introducing more shareholders to improve the branding as well as driving the market cap.

Thank you, Mr. Zhang. Next, please. The lady in the middle.

Greetings from an. I have two questions. First, about dividend payout because we have noticed that in the recent years, China calls has been improving your dividend payout. And you had some special dividend payout after the annual result after -- for 2023 and 2024. And also last year when the coal price was low, but you still improved your dividend payout ratio from 30% to 35%. And these measures were well received by the market. And many of the long funds, they have been paying attention to the changes you have been making. But in this year's annual payout, you have used a payout ratio of 35%. You're not improving it further. And we used the Hong Kong performance a relatively lower base. to do the payout ratio. So that means for the A shares market, the payout ratio is about 28%. And this -- for the long insurance-based funds, this is a bit stressful for us because we expect higher returns. So my question for the management team is, what's your plan for the future dividend payout? And we also noticed how the Finance Ministry has adjusted up the payment ratio for SOEs. And for those in coal sector, it said 35%. So does that affect your payout ratio? That's my first question. Question number two, we have noticed you have many of the good-quality assets. In May 2028, so your commitment about the noncompete with [indiscernible] will expire and PB in share market is at 1.5x. And in Hong Kong Stock exchange, it's 1x. So that means you're not longer under the pressure to do further asset injection and the external environment is good for you. So do you have any plans to inject the good-quality assets into the listed companies?

Okay. The dividend payout question will be taken by Lee.

We were listed in the share market in 2006. And we made the commitment to have a cash dividend, a payout ratio of 20% to 30%. And it is part of our company charter. And from that IPO year, although we made the range of 20% to 30%, but it has never gone below 30%. And when we make the payout policy, we want to struck the balance between our development, operation stability. We want to maintain our high-quality development. And we have been asking for the input from investors and from our shareholders, from the management team and from the Board. That's how we made the dividend payout policy. And for your question, I have several points to make. So people might say that we have a lot of the cash reserves. And with so much cash on hand, why don't we pay out more? For the RMB 90 billion of those money market funds, we put such of the finance management under the holdings company. So out of the 90 billion, about 40 billion belongs to the group level. So that -- not all of those cash reserves can be tapped into. And also, we have got the special reserve funds for safety and environmental compliance. So it's not the idle fund resting our balance sheet. And if you deduct all that amount, we have only about RMB 40 billion at our disposal. And considering the revenue size of [indiscernible] RMB 150 billion, this is a good enough ratio here and we want to further improve our operational efficiency to give better returns to our shareholders. I want to explain more about how we are using those cash reserves. It's not being idly held. And of course, about investor returns, at the end of the day, it all comes back to the high-quality growth, it's not just about the cash payout. You can calculate our payout ratio in the 14th 5-year plan versus the market average, we are always on top. In 2020, we paid out RMB 1.7 billion. And in 2024, it was RMB 6.3 billion, and we also offered some special dividends. Last year was also about RMB 5 billion and to further improving efficiency and improving our growth. We are expanding the base for dividend payout. And no matter how violent the market could be where we still have a stabilized growth, and that's a better guarantee for your returns. And about whether we can further expand the payout ratio, well, in the 15th 5-year plan, you have been asking about the M&A possibilities and asset injection possibilities. These are part of our plan, and they all need funds, they need liquidity. For a good enough asset, we need to at least have RMB 10 billion or even RMB 20 billion to be part of the bidding process if we want to acquire it. And for all the transformations and the development we need for the 15, 5-year plan, we also need the ammunition. So we have to factor in all those different variables and also getting the input from investors and shareholders, and we would definitely listen to the input from you. And then we welcome all advisers from you to formulate the payout ratio policy.

About your second question, we have got a lot of attention from our existing assets and the injection of other assets. Yes. The group has some other coal and electricity-based assets. and you're wondering what would happen to them. This is something we have been studying at the group level. We do not rule out the possibility to securitize those assets. or injecting them into the listed subsidiaries. But as to how does that happen, through what channel and when, we are conducting the researches here. We do not have a finite solution here. If we have come to a conclusion, we would definitely disclose it to the capital market. And about the noncompete commitment being expired, thank you for noticing that. And we have been discussing this issue. And we are here studying all these issues. And again, if there are some concrete conclusions, we would disclose them in a timely manner.

Good afternoon. I'm from [indiscernible] Securities. And I have the questions. For first question for internal on China Coal Energy. Last year, the coal price was trending down and you have made different efforts to cut costs, and that is why you had good enough performance. And based on your 2025 financial report, you have lower levels of the specialized reserve. And in 2026, we have a lot of uncertainties in the external market and the geopolitical landscape. So can you give us some outlook about the unit coal cost, how will that trend? And second question is for [indiscernible]. In Q1, the power plant in [indiscernible], Chuzhou has been put into operation. Another one will be put into operation in the second half. And in 2027, 2028, what are the the new growth drivers? Or would you prioritize paying the liabilities -- paying for liabilities, we're increasing the payout ratio? And the third question. [ Tianjin Titan ] subsidiary was loss-making. It's tied to the [indiscernible] in coal mine. And in 2026, with the goal -- coal mine will go live. It's also based in [indiscernible] it goes online. What's your expectation for the profit level?

About unit production cost of coal we have used more of the specialized funds last year. And in the 15th 5-year plan, we had a good cost control, it was very effective. It's not about how much we tapped into the specialized fund. But our minds are modernized and highly efficient in production technologies and designs are very advanced. That matters. So no matter how strict the -- or severe the circumstances are, we could have stable operation. And that's the most important foundation for the good operation. For the specialized funds and mostly on to the inspection and safety, and we do not get to decide how to spend it. There are some strict state-level rules about how to spend it. So we have a very detailed rule about expanding it. It's all going according to a rule. So we do not get to decide to use it more or less based on the market trends. there's rules about this usage. And last year was the last year for 14, 5-year plan, so we decided to invest more into safety and inspection so that we would have smooth operation for the 15th 5-year plan. Every year, there are different focuses for such investments. That is why it seems that we used more of the specialized funds. As for the smaller balance, starting from last year, we took some big measures. One part of the cost would be about the finances. We have unified, we have got a transparent procurement for all the raw materials and eliminating 90% of the middlemen. So we're connecting directly to the vendors and we can have better management of the vendors. Last year, procurement cost was reduced by more than 7%, and we'll continue that trend this year. And we have done the online procurement for such procurement so that we have -- we can keep tabs on procurement. So that's what we have done from the source. And we have standardized cost control. And over the years, we have established a good SOP there. And Mr. Gao is being hands-on in monitoring this system, making sure that each step up the process, we can scientifically squeeze the costs. And this is still an ongoing process. We believe we can effectively control the cost here. But I want to emphasize, it's not about how much more you can squeeze the costs here because margin is also tied to the selling prices. The unit coal shipping fees could be tied with the sales. And we -- there could be different pricing for different varieties of the coals, and we could shift the manufacturing capacity for different varieties than last year, we increased about RMB 800 million in profit through shifting the capacity for different varieties of coal. So it's not just about cutting costs. This 1 dimension, we'll have multiple levers to play.

Question about Sing. Thank you for the question. In Q1, our Changan Chuzhou power plant went online this year, we increased the power generation by 30 billion-kilowatt hour in Q1, up by 2 billion units. So that ensures our future profitability. Your question about our investments during the 15 5-year plan. Mr. Gao in his report has mentioned our in [indiscernible] 12457 strategy and 2 hedging system. We have -- we're aiming to build the industry cluster in East China, and we will have 2 transformational sites. And we also have the coal power chemical renewable, we have got installed capacity for thermal plants, and we want to make a thermal power plant base and for the coal-based chemical, it's also an important component. And for our coal production capacity, we are tying it with the chemical production and renewal production so that we can be better hedged against the future risks. And in the 15- and 5-year plan, we're adding another some incremental capacity. And in the 7 basis we have, we are conducting new businesses there. Question about Shanghai Energy. The Tenshin Company sustained loss last year. It had 1.8 million tonnes of capacity. And in 2025, because of the complex geological structure, it affected our production capacity. And also the 1.6 mine, there was an incident with a higher carbon monoxide level. And to prioritize safety, we had this thorough inspection and governance. And these two factors led to only 960,000 tonnes of 47% reduction versus our coal. And also coal price was reduced a lot, In 2025, it was RMB 195 per tonne, 30% down year-over-year. That is why mine sustained losses in 2025. As for the [indiscernible] mine, it is in the same region with mine 106, but it has some features. It has bigger capacity, 3 million tonne of capacity. And also during the construction of with [indiscernible], we added the washing -- coal washing plant. But for mine 106, there is no washing and selection. But in Wescoal have added the washing step. So it's more differentiated. So it's possible that we could use it for chemical coal, we could change our sales strategy. And we are also planning for a cost control here. to better ensure cost reduction after it went online to achieve good efficiency.

In the interest of time, let's have one last question.

I'm Juan Guangfa Securities assumptions. Twoi questions for the management team. In the past decade, we saw how the 3 listed companies have got very advanced footprint, you're present in Shalini and in other regions in China, you're more band than your peers. And in the presentation, you said in the 5-year plan, you have presence for coal power chemical renewable. But after peak carbon emission has been reached? Do you have any changes to co-power chemical renewable business? Are you adding new things? Or are you putting a stop to any of these sectors? Any of these businesses? Question number two, Sing is aiming to build 100 billion energy cluster. And how do you make that happen?

So you're already asking questions about the 16 5-year plan. is beyond 2030. So you're asking a very sharp question tricky for us to answer. Well, based on what I have learned, this is for Mr. Gao and based on my knowledge about the group strategy, let me give you a response. -- about coal power chemical renewable strategy, we have the 2 integration and 2 hedging system. So during my prepared remarks, I have mentioned the 2 integration coal plus thermal power so that we can be better protected against the changing prices of coal. If the coal price goes up, electricity could be sustaining losses. If the coal price goes down, it could be loss-making for coal. But if we tie the 2 together, we produced coal, and we use it ourselves so that there's less price fluctuations affecting our performance and making sure that our margin would be steadily trending up, less fluctuations here. second integration is thermal power being tied to renewable. Why do we do this? It's about the carbon emission restrictions here. We are onboarding many of the renewable projects. They are part of the green energy can offset some of the CO2 emissions from our thermal power generation. So this can address the carbon emission restrictions for us. That is why we started the 2 integration strategies. 2 integrations leading to the 2 hedges. As for -- in 2030, how will we develop the coal power chemical renewable strategy, we have another strategy about efficiency gains from existing assets for our our existing businesses, -- you already know that, but through our future growth, you have the thermal power and renewable and these are the focuses. Where is our leverage here? For the coal business, we want to use less human labor. We want it to be even unmanned. We want a higher and then intelligent solutions so that we can have more efficiency gains as for thermal power generation. Many other power companies that have high coal consumptions for the new power generation units that could be reducing coal consumption by 10% by consuming less coal, it means less carbon emission. And we also have other steps like the authorization and that can also further be even more environmentally compliant. And as for the chemical, we are confining biomass with chemicals. We make hydrogen with green energy. And then we add hydrogen into our chemical devices, you're all experts here. And in a chemical process, hydrogen is used a lot, but the hydrogen we have now is great hydrogen made out of coal, but now, but in the future, if we have the green 10G-based hydrogen, and we add it into the chemical process, it can help reduce our carbon emissions too. And through -- this is our rationale and our strategy for carbon commission and carbon neutrality, this is the trajectory that we're on. We're not just grounded. We also have high ambitions. In the renewable sector, we are also making some explorations. For example, the gas -- natural gas and also biomass-based protein and the green ammonium and green hydrogen. We're following those technologies, but they are not part of our main business just yet, but we're considering those new advancements.

question about Cyndi. Thank you for your question. About our 100 billion cluster in the 15 5-year plan, we're headquartered in Haina, and the Haina should be -- we're trying to make it unmanned. And for the Fuyang green line, we are trying to combine coal with renewables and there was a new policy targeting it last year. And about the Blued industry, cycling industry for the leasing power plant, where it is based. We are combining it with another coal energy where providing the local government with a cheap energy and also heat generation. And fourth, around the [indiscernible] factory, there is a 0 carbon industrial park and we can combine it with heat generation and renewables. And for our [ Luanpower ] plant, after putting it into operation in H1 this year, we could expand its possibilities based on what's available to us locally. And for the [ Shenzhou ] base, it is around development, economic development zone, we could provide that region with thermal power. And it's the same story for [indiscernible]. Because renewable energy is taking some share from thermal power, in the future, we want to work better with the government so that we can gain more inroads through such introductions.

Well, let's wrap up the Q&A session. Dear friends and investors, the management team from our group has answered your questions, but in the interest of time, I know if you have some unresolved questions you can keep in touch with us. You can reach out to us. We're happy to address your questions. again. Thank you for your questions. And thank you for following our development and participating in our earnings briefing. Thank you.