China Coal Energy Co., Ltd. Q4 FY2025 earnings call

1. China Coal Group overview: Key state-owned backbone enterprise under SASAC supervision, covering entire coal industry chain, with core listed subsidiaries China Coal Energy, Shanghai Energy and Xinji Energy. 2. 14th Five-Year Plan achievements: Steady growth, structural optimization, enhanced core competitiveness, improved risk prevention and control capabilities, innovation-driven development. 3. 15th Five-Year Plan development plan: China Coal and China Coal Energy to be guided by relevant thoughts, implement new development philosophy, fulfill energy security mission. Shanghai Energy will leverage its bases. Xinji Energy will focus on Anhui and Jiangxi region. 4. China Coal Energy 2025 performance: High coal output and stable sales with enhanced efficiency, stable and refined sales in coal chemical industry and rapid growth in new energy business, upgrading of coal mine equipment services and prominent value of financial business, in-depth promotion of lean management, maintained stable business performance and continuously optimizing financial structure, steadily advances 2 joint operations and enhance momentum for development, foundation of safety and environmental protection remains solid, dividend payout policy continuously been optimized. 5. Shanghai Energy 2025 performance: Intensified efforts to improve quality and efficiency, enhanced level of operation, strengthened coordination of production, transportation and marketing, solidified reform and continuously improving development momentum, steadily advanced key projects, continuously strengthened innovation and R&D, paid close attention to shareholder dividends, continuously strengthened market value management. 6. Xinji Energy 2025 performance: Forged ahead with innovation, achieving breakthroughs against challenges, marked successful conclusion to 14th Five-Year Plan, had 7 major achievements including historical breakthroughs in transformation, significant improvements in production efficiency, construction of intelligent safety protection and control system, leapfrog growth in operating performance, reaped fruits from reform efforts, leading progress in tech innovation, owned social responsibility.

China Coal Group's 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. China Coal Energy is a large-scale energy enterprise integrating coal production and trading, coal chemicals, power generation and coal mining equipment manufacturing. Shanghai Energy is primarily engaged in coal electricity, railway operations and integrated energy services. Xinji Energy is mainly involved in coal electricity and renewable. During the 14th Five-Year Plan, China Coal and its listed subsidiaries achieved steady growth and structural optimization. China Coal Energy had commercial coal output of 639 million tonnes and sales of 1.4 billion tonnes during the 14th Five-Year Plan. Its coal chemical business had major product output of 28.9 million tonnes and sales of 29.545 million tonnes. Shanghai Energy had annual commercial coal volume of 6.13 million tonnes, refined coal output over 4.47 million tonnes and power generation capacity 4.24 billion kilowatt hours. Xinji Energy produced 19.76 million tonnes of commercial coal and sold 19.69 million tonnes, generated 14.2 billion kilowatt hour of electricity and sold 13.4 billion kilowatt hours.

1. 2026 China Coal will adhere to the general principle of pursuing progress while ensuring stability, scientifically optimize production organization develop potential and enhance efficiency, focus on project development and advance strategy implementation, consolidate and deepen reform achievements and drive reform to greater depth, strengthen the management of listed subsidiaries and solidify investment value. 2. China Coal Energy 2026 main work arrangements: 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, fully ensure stable supply of energy, deepen lean management and cost control for Phase 2 of Yulin Chemical project, steadily promote 2 joint operation programs as well as co-electricity chemical, new energy industrial chain to promote green development, continuously deepen enterprise reform and mechanism innovation, strengthen level of digitalization, increase R&D investment and cultivate new high-quality productivity, enhance ability to prevent and resolve major risks, further consolidate foundation of market value management, consolidate foundation of market value management as well as level of corporate governance and quality of information disclosure. 3. Shanghai Energy 2026 work plan: Be guided by relevant spirits, comprehensively strengthen party's leadership, implement new development concepts, strive to improve quality and efficiency of operation, accelerate start of 330,000-kilowatt PV project, strengthen 3 production keys. 4. Xinji Energy 2026 goals: 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, make every effort to improve operational quality, optimizing annual budget targets for 5 rays indicator, develop at full speed, ensuring timely commissioning of 3 power plants, establish 1245/7 development strategy focusing on stable production and increased sales, 2 integrated business models, industrial upgrades, innovation-driven development, 3 defense lines, strengthening enterprise through talent, party building leadership to forge strong entrepreneurship

Q: Concerned about pricing trend of coal chemicals since Middle East conflict and rebound of polyolefin production and sales in 2026 and impact on unit cost.

A: International conflict has impact on chemical products and energy. Urea pricing flat with same period last year, polyolefin pricing more volatile, 10% higher for polyethylene than last year, propylene price still higher. For polyolefin, 2 sets of devices were under major maintenance or overhaul in 2025, but in 2026, production volume plan is 1.45 million tonnes and may go beyond, and after device overhaul, operation becomes better, cost will be lower.

Q: About China Coal Group's 15th Five-Year Plan investment directions for coal chemicals, dividend payout change with CapEx, power generation segment prospect in '26 and '27, and market cap improvement plan.

A: Coal chemicals directions include production bases in Mongolia and Shanxi, coal-based LNG, coal to oil, coal-based hydrogen and grain alcohol experiments. Dividend payout needs to balance development and operation, cash reserves not all idle, payout ratio based on input from shareholders. Power generation segment profit prospect is good due to new power plants and 2 joint operation programs. For market cap improvement, will accelerate development and engage in relevant projects.

Q: About dividend payout plan, including future payout ratio and asset injection plan.

A: Dividend payout ratio is part of company charter, has never gone below 30%, balances development and operation, cash reserves not all disposable. Asset injection is being studied, no finite solution yet, noncompete commitment expiration is being discussed.

Q: About unit coal cost trend in 2026, new growth drivers and payout ratio in 15th 5-year plan for China Coal Energy, profit level expectation for Xinjiang mine in 2026.

A: Unit coal cost controlled through various measures like direct vendor connection and standardized cost control. New growth drivers include new power plants and 2 joint operation programs. For Xinjiang mine, planning cost control to achieve good efficiency after going online.

Q: About changes to coal power chemical renewable business after 2030 peak carbon emission and how Xinji builds 100 billion energy cluster.

A: After 2030, will continue 2 integration and 2 hedging strategies, focus on efficiency gains from existing assets, thermal power and renewable, and explore new advancements. Xinji builds 100 billion energy cluster by being headquartered in Huainan, combining coal with renewables, following relevant policies, and combining with other coal energy in relevant regions