[Audio Gap] I'm honored to become the host and to brief you on the performance of China Coal Energy, Shanghai Energy and Xinji Energy. We 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; Ms. [indiscernible], China Coal's Independent Executive Director and CFO, Chai Qiaolin, [indiscernible] General Manager for the Chemicals Department; Vice Director for Marketing Department, Mr.

Li Ping; China Energy's Chairman, Mr. Zhang Futao; Independent Executive Director, Mr.

[indiscernible]; General Accountant, Mr. Zhang Chengbin, Energy General Manager, Mr.

Sun Kai; Independent Executive Director, Mr. Yao Zhishu; Vice President, Guoxiu Zhang, General Accountant, Mr.

[indiscernible], Board Secretary, Mr. Dai Fei and all the business heads for the 3 subsidiaries.

We have 5 items on the agenda. First is the basics about China Coal Group, our performance in the 14th Five-Year Plan, our outlook for the next Five-Year Plan outlook.

And then the 3 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 5-year period.

Distinguished Investors, ladies and gentlemen, good afternoon. Welcome to the 2025 Collective Performance Briefing for China National Coal Group's listed 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 4 aspects; the basic profile for China Coal and its listed 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 SASAC as a central enterprise, covering the entire coal industry chain shoulders' 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 tonnes with a total capacity of 310 million tonnes and annual trading volume of 400 million tonnes.

We operate and construct 11 chemical projects with a total capacity exceeding 20 million tonnes we have an installed capacity of over 47 gigawatts for thermal power in operation and under construction and renewable installed capacity of 7 gigawatts. We hold controlling stakes in 3 listed subsidiaries, China Coal Energy, Shanghai Energy and Xinji Energy.

By the end of 2025, the group's managed total assets exceeded RMB 650 billion with 120,000 employees. We have received an A rating from SASAC for operational performance for 6 consecutive years and have been listed in the Fortune Global 500 for 6 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 we 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.

Xinji 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 SASAC. We adhered to the general principle of pursuing progress while ensuring 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, 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 14th Five-year plan period, we fulfilled medium- and long-term coal contracts of 730 million tonnes, reserved 160,000 tonnes of fertilizers and 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 with over RMB 180 billion contributing to local 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 leapfrog development.

Significant progress was made in the 2 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 CNY 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 Five-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 Five-Year period, China Coal achieved an average annual total profit of CNY 30 billion, up by 253% versus 13th 5-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, lean management, policy utilization and bidding procurement, achieving cost reduction and efficiency improvement.

Its average annual profit grew substantially, while its assets, market cap and stock price all maintained a stable upward trend. Xinji 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 298% from 2 gigawatts at the end of the 13th Five-year period to 7.96 gigawatts at the end of the 14th Five-Year Plan period, proving the effectiveness of the 2 integrated business models. Its average annual operating revenue increased with both average annual profit and asset growing.

During the 14th Five-year period, the 3 listed subsidiaries cumulatively paid out dividends of CNY 30.9 billion, up by 360% versus the previous Five-year period. By the end of the 14th Five-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 remained stable. We continue to strengthen pollution prevention and control, promoted application of clean production and energy saving emission reduction technologies, carried out mine ecological restoration, land reclamation, biodiversity protection and improved ecological environment in mining areas.

Each listed subsidiary improved its ESG governance system, advancing specialized work such as climate change and double materiality analysis. Fifth, we focused on innovation-driven development, gaining 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, Disruptive Technology innovation key project, Energy Low Carbon Joint Initiative, reorganized the National Key Lab of digital and Intelligent Technology for Unmanned Coal Mining, established Energy and 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 in the strategic emerging industries, the group increased our R&D spend by 2.2x compared with 13th Five-year period. Breakthroughs in key technologies were advanced, including special catalysts 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 security strategy of 4 revolutions and cooperation, respond to the major strategic decision of carbon peaking and carbon neutrality, fulfill our mission of ensuring national energy security, strengthening SOEs and state-owned capital and leading the high-quality development of coal industry, adhere to the dual wheel drive of efficiency gain of existing assets and transforming incremental assets practice. The 2 integration plus model build a hedging mechanism against the downward risk of the external market for own coal and against future carbon emission constraint, create an industry chain of coal, electricity, chemicals, renewable with China coal characteristics expand in emerging industry.

Shanghai Energy will leverage its 3 major bases in Jiangsu Xuzhou, Shanxi and Xinjiang as strategic pillars to strengthen its 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 Yangtze Delta region.

Xinji Energy will focus on the Anhui and Jiangxi region aiming to create a CNY 100 billion level energy supply industrial cluster in East China. It will promote co-development of coal, thermal and renewable power with 7 major industrial bases in Huainan, Fuyang, [indiscernible] 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. Third section, industry analysis.

2026 marks the start of China's 13th Five-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 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 the 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 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 15th Five-year period, we are still in strategic window of opportunity.

The foundational role of coal and thermal power will be strengthened and new power system with 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 possesses the following advantages: first, resource and scale, abundant coal resources, ample 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 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, deepen reform and innovation, accelerate the green transformation, co-work development and safety, strengthen core functions and competitiveness, promote high-quality development and contribute to ensuring national energy security and achieving a good start for the 15th Five-Year plan. First, we will scientifically optimize production organization develop potential and enhance efficiency.

We will 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 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 to 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 14th Five-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 decisions and plans of the Central Committee and firmly grasp 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 2 joint operations and actually building the 2 hedging mechanisms, continuously enhancing development resilience. First, high coal output and stable sales with enhanced efficiency during the 14th Five-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 the 13th Five-Year Plan and a total of 1.4 billion tonnes of commercial coal sales, an increase of 52.7% compared with the 13th Five-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 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 tonnes, 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 the sales base under the background of deep pressure in the industry. The fulfillment rate of the medium and long-term contracts for thermal coal exceeded 90%, fully playing a role of a stabilizer in energy supply.

In '25, the total commercial coal sales were 256 million tonnes, a decrease of 10.2%. And the self-produced commercial coal sales were 136 million tonnes, a decrease of 0.9%.

And the purchased coal sales were 109 million tonnes, a decrease of 23%. The average sales price of self-produced commercial coal was CNY 485 per tonne, a decrease of 13.7%.

Among them, the sales price of the thermal coal was CNY 448, a decrease of 10.2%. The sales price of coking coal was CNY 949, a decrease of 24.3%.

The sales price of purchased coal was CNY 492 per tonne, a decrease of 15.6%. Second, stable and refined sales in coal chemical industry and rapid growth in 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 tonnes, an increase of 49.2% compared with the 13th Five-Year Plan.

And the total sales volume was 29.545 million tonnes, an increase of 49.9% compared to the 13th Five-Year Plan. The total installed capacity of wholly owned and controlled coal-fired power plants under construction and operation was 53.9 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 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 1.955 million tonnes, an increase of 13% and the output of ammonium 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 6.356 million, an increase of 8.8%.

Specifically, the sales volume of polyolefins was 1.381 million tonnes, a decrease of 9%. The sales of urea was 2.423 million tonnes, an increase of 18.9%, the sale volume of methanol was 1.963 million tonnes, an increase of 14.4%, and the sales volume of ammonium nitrate was 0.58 million tonnes, an increase of 3%.

The sales price of polyolefin was CNY 6,337 per tonne, a decrease of 9.4%. The sales price of urea was CNY 1,752, a decrease of 14.4%.

The price of methanol was CNY 1,737 per tonne, a decrease of 1.1% and the price of ammonium nitrate was CNY 1,776 per tonne, a decrease of 13.5%. Thirdly, upgrading of coal mine equipment services and the prominent value of financial business.

During the 14th Five-Year Plan, the coal mine equipment business promoted the improvement and expansion of joint storage and supply and intelligent transformation, achieving a total output value of CNY 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 lean 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 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 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 unit sales cost of self-produced commercial coal was CNY 251.51 per tonne, a decrease of CNY 30.2 per tonne or 10.7%.

Specifically, material cost decreased by CNY 5.45 or 9.4%. Labor cost decreased by CNY 0.82 per tonne or 1.4%.

Depreciation and amortization increased by CNY 1.76 or 3.9%. Maintenance expenses decreased by CNY 1.26 or 11.6% Transportation and port charges decreased by 1.82 or 3.2% and other costs decreased by CNY 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 of polyolefin was CNY 6,136, a decrease of 1.6%. The unit sales cost of urea was CNY 1,297 per tonne, a decrease of 21.7%.

The unit sales cost of methanol was CNY 1,321 per tonne, a decrease of 35.7% and the unit sales cost of ammonium 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 Five-Year Plan, the company strengthened the operation management and focusing on improving quality and efficiency. We have reached annual revenue of CNY 198.2 billion, an increase of 91.8%.

And the average annual profit was CNY 30 billion, an increase of 253%. The weighted average return on net asset increased by nearly 6 percentage points compared to the end of 13th Five-Year Plan.

The average annual net cash flow from operating activities was CNY 39.7 billion, an increase of 109%. The company's market cap increased by 209%.

And the total net profit attributable to parent company over the past 5 years was CNY 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 CNY 148.1 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%. The net profit attributable to parent company was CNY 17.9 billion, a year-on-year decrease of 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 coal 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. 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 profits by CNY 0.36 billion. Thirdly, the decrease in the sales volume of self-produced commodity coal reached profit reduced profit by CNY 0.35 billion.

Fourthly, the reduction in investment income reduced the profit by CNY 0.34 billion. Fifth, the decrease in nonoperating income and expenses reduced profit by CNY 0.087 billion.

Number six, the company steadily advances the 2 joint operations and enhance the momentum for development. During the 14th Five-Year Plan, the company accelerated the 2 joint operation program and also being the 2 hedging mechanisms of coal electricity, chemical and new energy, accelerating the installation of key projects.

In 2025, the company's CapEx plan was closely centered around coal, about CNY 21.678 billion. And during the reporting period, a total of CNY 19.92 billion was completed, achieving 91.9%.

Relevant key projects were steadily advancing. For example, the Libi Coal Mine is expected to achieve the dry operation by end of '27 and the Weizigou Coal Mine is expected to achieve a try operation by end of '26.

The Wushenqi power plant is expected to be in operation in the second half '27 and the Yulin Coal Deep Processing Project has entered the equipment installation stage. The company's CapEx plan for '26 was CNY 21.32 billion, an increase of 7.05% compared with 2025.

By business segment, the Coal segment plans to allocate CNY 7.24 billion. The Coal Chemicals segment, about CNY 8.48 billion; the Coal Power segment, about CNY 2.18 billion; the New Energy segment, about CNY 2.6 billion, the Coal Mining Equipment and other segments, about CNY 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 established a long-term mechanism. The regionalization and specialization reform was deepened.

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. Number 8, the dividend payout policy continuously been optimized.

The shareholder returns remained stable during the 14th Five-Year Plan. The company's cumulative dividends were CNY 28.2 billion, an increase of 393%.

And since its listing, the company's cumulative dividend has reached CNY 46.1 billion. In '25, to enhance the investment value of the listed company, the company's Board of Directors proposed to distribute RMB 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 CNY 2.2 billion already distributed, the cash dividend to the distributed to the shareholders is CNY 2.87 billion. Number 2, main work arrangements for '26.

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 15th Five-Year plan. The company plan to produce and sell over 130 million tonnes of self-produced commercial coal with 1.45 million tonnes of polyolefin product 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 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 upgrading 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 (sic) [ third ], we will deepen the lean management and the cost control for the Phase 2 of Yulin Chemical project.

And number four, we'll steadily promote the 2 joint operation programs as well as the co-electricity chemical, new energy industrial chain to promote the green development. Number 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 6, we also strengthen the level of digitalization, increasing R&D investment as well as to cultivate new high-quality productivity with Chinese coal industry characteristics. And number 7, 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.

Dear investors and analysts, looking back to the 15th Five-Year Plan and 2025, China Coal 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 Futao from Shanghai Energy to present the performance in '25 as well as the work arrangement for '26.

Dear Mr. Gao, Mr.

[ Jiang, ] 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 focused on the 1 profit and 5 raised targets.

For example, we have embraced some cost-down initiatives such as blending inferior coal and reducing all the materials. We managed to reduce cost by CNY 500 million and the production cost of raw coal and the cost of electricity sales decreased by CNY 40 per tonne and CNY 0.012 per kilowatt hour, respectively.

We strengthened the management of off-peak electricity usage, saving nearly CNY 13 million in electricity fees. We have also coordinated the use of safety and maintenance funds, reducing cost by CNY 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 CNY 16.28 million.

And also the raw coal calorific value has also increased by 164 [ Kcol. ] Additionally, the company has also achieved operating income of CNY 7.67 billion and net profit attributable to shareholders of listed company of CNY 220 million, total profit of CNY 150 million, total assets of CNY 1,900 billion and net asset of CNY 12.63 billion and earnings per share of CNY 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 we all aim to stabilize the production capacity.

So in '25, the company's annual commercial coal volume is 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 -- 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 3 lines has reached by 1 x 1.7 x 3. 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 2 joint operation programs or demonstration bases in Xinjiang and the first mining project of Xinjiang Weizigou coal mine smoothly 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 Ningdong 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 Datang 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 our R&D expense increase of 4.12% and also has won 24 provincial and ministerial level and the industrial level awards with 8 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 carbon storage space and virtual power plant have been implemented in an orderly manner.

The source grid load storage coordinated regulation microgrid project has also been included. Number 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 CNY 3.91 billion, which is 4.46x the raised funds of CNY 877 million. In September '25, the company implemented a 25 semiannual cash profit distribution, distributing a total of CNY 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 CNY 217 million in cash dividends to all shareholders at a rate of CNY 2.1 per 10 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 10 share through capital reserve.

Number 7, 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 1 of the 400-megawatt PV power generation project in Luxi C [ Qidong ] City, 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 CNY 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. Second, Shanghai Energy's 15th Five-Year Plan.

At present, the company has formulated a preliminary 15th Five-Year Plan. The overall thinking is to resolutely implement the strategic orientation for green and 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 2 hedge mechanism and remain firm in the 1, 2, 3, 4, 5 development strategy without wavering. That is aiming at creating a new [indiscernible] mine, and we will build a hedge mechanism based on these 2 joint operation programs, creating 3 major bases in Jiangsu Xuzhou, and Shanxi and Xinjiang adhere to the regionalization integration principles and also strengthen 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 fuel to raw materials. We will also focus on researching and developing the technology of coal grading and quality differentiation.

The 3 mines and the headquarters will remain stable production, increasing the planning of resources in [indiscernible] 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 the 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, we 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 and 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.

'26 is the starting year of the 15th Five-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 unwaveringly implement the new development concepts. We will also strive to improve the quality and efficiency of operation and with a focus on the [ 1233/6 ] 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'd also try to strengthen the 3 production keys of roof control, system optimization 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 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 Coal Group.

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. Zhang.

Let's give the floor to Mr. Sun Kai about the performance of Xinji Energy in 2025 and the working plans for 2026.

Distinguished investors, good afternoon. I'm very pleased to meet with all our friends at the Xinji 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 Xinji Energy. We forged ahead with innovation, achieving breakthroughs against challenges, marking a successful conclusion to the 14th Five-Year Plan.

In 2025, it was a critical period for Xinji Energy as we navigated challenges and tackled difficulties head on. Our cadaries and staff united as one fully embodying the Xinji 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 tonnes of commercial coal and sold 19.69 million tonnes.

We generated 14.2 billion kilowatt hour of the 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 CNY 2.1 billion and EPS of CNY 0.8 for the year.

By the end of 2025, total assets reached CNY 53 billion liabilities or RMB 33.7 billion with a gearing ratio of 60%. Owners' equity attributable to the parent company was CNY 17 billion, up by 9% year-over-year.

In 2025, it also marked the conclusion of Xinji Energy's 14th Five-Year Plan. During this period, all categories and staff implemented the strategy of enhancing efficiency for existing assets and driving growth through new businesses, and we had 7 major achievements.

The first as we made historical breakthroughs in transformation. We established a new industrial structure with coal at 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 tonnes, a growth of 10%. The thermal power business achieved a leap from single point projects to clusters with controlled installed capacity increasing by 5.96 gigawatts, nearly fourfold.

The renewable business grew from the scratch, establishing a demonstration base for the group's 2 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 RMB 1.5 billion revenue from quality improvement.

Equipment upgrades improved with all 5 operational coal mines passing intelligent acceptance inspection. Third, construction of an intelligent safety protection and control system.

We advanced system 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 CNY 50 billion, nearly doubling total assets and profit versus the end of 13th Five-Year Plan. We entered a fast track for both scale and quality, achieving a dual breakthrough in asset and profitability.

Gearing ratio was 63%, down by 9.55 percentage points. Labor productivity per headcount reached CNY 724,800, up by 69%.

Fifth, we reaped the fruits from our reform efforts, a corporate governance system known as 1135/11 was established, comprising 1 charter, 1 measure, 3 rules, 5 lists, 1 menu and 1 completion. We were selected as a demonstration enterprise for grassroots corporate governance by SASAC.

We completed our 3-year action plan for SOE reform with high quality. Sixth, we achieved leading progress in tech innovation.

We invested RMB 330 million intelligent construction. We undertook 3 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 SASAC and established the industry's first 5G plus smart power plant. Seventh, we owned our social responsibility over the 5-year period, 76 million tonnes of LTA coal were delivered, exceeding national energy supply assurance targets and fulfilling our role as a pillar in ensuring energy security.

We spent CNY 450 million to improve our employees' sense of gain and well-being. We paid CNY 13.67 billion 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 8 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 Xinji's energy transformation and development with firm and clear objectives.

Comprehensively improve production quality and efficiency with commercial coal production less than 18.5 million tonnes and aiming for 19 million tonnes. Power generation, no less than 30 billion kilowatt hours.

We'll make every effort to improve operational quality, optimizing the annual budget targets for the 5 rays indicator will develop at full speed, ensuring timely commissioning of 3 power plants. 2026 also marks the start of Xinji Energy's 15th Five-Year 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 1245/7 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 5 operational mines, we will advance the level deepening of [indiscernible] Xinji #2 mine and 1 mine or we develop [indiscernible] the coal resources and complete the integration of coal [indiscernible].

We focus on changes in coal products and categories to enhance our competitiveness. Second, we will focus on the 2 integrated business models to fully advance 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, 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 renewables 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. Fourth, we focus on innovation-driven development to empower high-quality development.

We will expand intelligent control applications, data lake integration and standardized governance. 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 unmanned intelligent mining, intelligent rapid tunneling and adaptive and control deep mine equipment. Fifth, we will focus on the 3 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 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 grassroots 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 for positions and build a talent pipeline for cadres.

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 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 Xinji Energy's transformation.

We will maintain an unrelenting spirit to strengthen our confidence for 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 Five-Year Plan.

We will keep improving quality and efficiency, supporting market cap growth through solid operations and rewarding all shareholders and investors with strong performance. I wish all investors a smooth work, good health and abundant rewards.

Thank you.

Thank you, Mr. Sun.

Now we'll open the floor for Q&A with both online and on-site participants. We will give priority to the on-site questions while also addressing some online questions, please.

Thank you, Mr. Zhang and management from China Coal.

I am analyst from CITIC Securities. I have 2 questions about coal chemical.

Since the conflict in the Middle East, people are concerned about the pricing trend of coal chemicals. So what will be the trend now compared with the last year for coal 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, will that lead to better economies of scale and thus lowering the unit cost of sales for polyolefin?

Okay. I would like to ask [ Ms.

Li ] 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 Coal 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 10% higher than last year. That's for the polyethylene.

While for the propylene, the price is actually still higher. It's 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. So 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.

Shu from the Coal chemical BU to address this question.

Okay. So in 2025, we have 2 sets of our devices are under major maintenance or overhaul.

So judging by the current circumstances, reaching a full load or full 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.

gentleman in the first row.

Okay. Thank you, Mr.

Gao and also thank management from China. I am [indiscernible] from the [ Yangtze River Metal.

] I have some questions. So firstly, a question to Mr.

Gao regarding the 15th Five-Year Plan of the group. I understand that in the 14th Five-Year Plan, the group has a lot of investment in the coal chemicals, and people are also interested to find more about the directions of our investment and the volume guidance for the 15th Five-Year Plan for Coal Chemical as well as whether the dividend payout of China Coal Group would also change with the changes of CapEx.

So that's my first question. And the second question is about -- we know that in Anhui province, the electricity price is turning 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 will 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 ratio is like still lower than 1. So what will be the plan 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 coal chemicals.

It's true that we've been paying close attention to this 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 the Mongolia and the Shanxi province. We're also interested to find more about the opportunities in Shanxi province and Xinjiang for some like early technical investment or some demo project.

And second thing would be the coal-based LNG. We are also engaging in 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 oil dependency on the foreign countries and also over 40% of gas dependency on foreign countries. So from a strategic point of view, the nation is trying to improve the supply chain activity, 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 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 cultivating in these areas for many years. So these will be the main directions.

And the other thing, as mentioned earlier in a prior presentation, the coal-based hydrogen and then using the hydrogen to generate grain alcohol, we are making some experiments in order. If the 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 coal quality and whether it matches with our know-how in the chemical segment. So we would 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.

Next, please.

Thank you for your question. I'd like to address the question about the commissioning of the power plant.

So the last year, the [indiscernible] power plant, the power capacity is 14.2 billion. And this year, for the Xuzhou and Shanxi, with these new power plants, our electricity -- the generated electricity would increase by 13 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 coal. 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 thirdly, 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.

Thank you. 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 gap from our targets.

So in 2026, we aim to address the following initiative. 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 in work to boost our operation. And secondly, from a perspective of development, we would also accelerate the cadence mostly in 3 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.

And 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 also wanted to speed up the construction of our facility in Gansu province and Shanxi province. And at appropriate timing, we would announce more details to the capital market.

In the meantime, for our power business at the headquarter level, we would also engage in some major expansions. As you probably have noticed, we had like this MA 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 micro grid, we are working on these agenda. At the same time, we have also a new direction that is low carbon and green initiatives, including making use of geothermal energy as well as the recycling of the coal ashes or coal powder.

So all of these are on the right track. So we aim to leverage this 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 and to improve the branding as well as driving the market cap.

Thank you.

Thank you, Mr. Zhang.

Next, please. The lady in the middle.

I am from [indiscernible]. I have 2 questions.

First, about dividend payout because we have noticed that in the recent years, China Coal 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 we have been making.

But in this year's annual payout, you have used the payout ratio of 35%. You're not improving it further.

And we used the Hong Kong performance at 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's at 35%. So does that affect your payout ratio?

That's my first question. For 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 the PBE in Asia market is at 1.5x and in Hong Kong Stock Exchange, it's 1x. So that means you're no 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 Mr.

Li.

We were listed in the H-share market in 2006, and we made the commitment to have a cash dividend 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 dividend payout policy, we want to strike the balance between our development, operation stability.

We want to maintain our high-quality development. And we have been asking for the inputs from investors from our shareholders, from the management teams 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. RMB 90 billion of those money market funds, we put such of the finance management under the holdings company.

So out of the RMB 90 billion, about RMB 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 funds resting our balance sheet.

And if you deduct all that amount, we have only about RMB 40 billion at our disposal. And considering our revenue size of at least 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 through further improving efficiency and improving our growth, we are expanding the base for dividend payout. And no matter how violent the market could be, 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 15th 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 will definitely listen to the input from you and then we welcome all advices 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 studying all these issues.

And again, if there are some concrete conclusions, we would disclose them in a timely manner.

Okay. Let's continue.

I'm from Minsheng Securities. I have 3 questions.

First question for China Coal Energy. Last year, the coal price was trending down, and you have made different efforts to cut costs.

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 would that trend? And second question is for [indiscernible].

In Q1, the power plant in Shanxi and Xuzhou has been put into operation. Another one will be put into operation in the second half.

And in 2027, 2028, what are the new growth drivers? Or would you prioritize paying the liabilities, paying for liabilities or increasing the payout ratio?

And the third question, Xinjiang [indiscernible] subsidiary was loss-making. It's tied to the Xinjiang 106 coal mine.

And in 2026 with the coal mine will go live. It's also based in Xinjiang.

And once it goes online, what's your expectation for the profit level?

About unit production cost of coal. So we have used more of the specialized funds last year.

And in the 15th 5-year plan, we had good cost control. It was very effective.

It's not about how much we tapped into the specialized fund, but our mines are modernized and highly efficient and production technologies and designs are very advanced. That matters.

So no matter how strict 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, it mostly went 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 spending it. It's all going according to rule.

So we do not get to decide to use it more or less based on the market trends. There is rules about this usage.

And last year was -- last year for 14th 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 continue -- we will continue that trend this year. And we have done the online procurement for such procurement so that 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 of the process, we can scientifically squeeze the costs. And this is still an ongoing process.

We believe we can effectively control the costs 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.

And 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 one dimension.

We have multiple levers to pull.

Question about Xinjiang. Thank you for the question.

In Q1, our Shanxi and Xuzhou power plant went live. 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 15th 5-year plan.

Mr. Gao in his report has mentioned our Xinji 1, 2, 4, 5, 7 strategy and the 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 renewable production so that we can be better hedged against the future risks. And in the 15 5-year plan, we are adding another some incremental capacity.

And in the 7 bases we have, we are conducting new businesses there. Question about Shanghai Energy.

[indiscernible] 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 2 factors led to only 960,000 tonnes of 47% reduction versus our goal and also coal price was reduced a lot.

In 2025, it was RMB 195 per ton, 30% down year-over-year. That is why mine 106 sustained losses in 2025.

As for the WISCO mine, it is in the same region with Mine 106, but it has some features. It has bigger capacity, 3 million tonnes of capacity.

And also during the construction of WISCO, we added the washing -- coal washing plant -- but for Mine 106, there is no washing and selection. But in WISCO, we 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 am from [indiscernible] Securities. I am [indiscernible].

Two 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 Shanxi, Xinjiang and in other regions in China. You're more advanced than your peers.

And -- in the presentation, you said in the 15th 5-year plan, you have presence for coal power chemical renewable. But after 2030 when peak carbon emission has been reached, do you have any changes to coal 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, Xinji is aiming to build 100 billion energy cluster. How do you make that happen?

So you're already asking questions about the 16th 5-year plan. It's beyond 2030.

So you're asking a very sharp question, tricky for us to answer. But based on what I have learned, this is from 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 produce the 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.

It 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 set 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 existing businesses.

You already know that. But for our future growth, you have the thermal power and renewable.

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 higher unmanned intelligent solutions so that we can have more efficiency gains. As for thermal power generation, many other power companies have high coal consumptions for the new power generation units, they could be reducing coal consumption by 10%.

By consuming less coal, it means less carbon emission. And we also have other steps like desulfurization and that can also further be even more environmentally compliant.

And as for the chemical, we are combining 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 the chemical process, hydrogen is used a lot.

But the hydrogen we have now is gray hydrogen made out of coal. But now -- but in the future, if we have the green energy-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 peak emission and carbon neutrality, this is the trajectory that we are 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 ammonia 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.

Thank you, Mr. Gao.

The question about Xinji. Thank you for your question.

About our 100 billion cluster in the 15th 5-year plan, we're headquartered in Huainan. And the Huainan mine should be -- we're trying to make it amend.

And for the Fuyang green mine, we are trying to combine coal with renewables, and there was a new policy targeting it last year. And about the [indiscernible] industry, cycling industry for the Weixin power plant, where it is based, we are combining it with another coal energy.

We're providing the local government with cheap energy and also heat generation. And fourth, around the Xuzhou factory, there is a zero carbon industrial park and we can combine it with heat generation and renewable.

And for our Luan power 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 Tengchong base, it is around a 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 the -- 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.

Thank you for following our development and participating in our earnings briefing. Thank you.