Key takeaway

The company issued its FY25 annual report and 1Q26 earningsresults. The main reasons for the FY25 earnings decline were thechallenging external environment and changes in soil and waterconservation fee collection policies. In 1Q26, the company's netprofit attributable to shareholders of the parent company fell65.9% YoY. Although product prices rose rapidly in March, thisdid not offset the negative impact of low product prices inJanuary and February. Looking ahead to 2Q, coal prices haverelatively strong fundamental support during the peak season.The natural gas business has sufficient low-cost inventory.Chemical product prices are at elevated levels due to oil priceimpacts. We await the release of 2Q earnings elasticity. Over themedium to long term, although the current externalenvironment is unfavorable for the company, this does notdiminish the value of its high-quality resource endowments.

Event

The company issued its FY25 annual report and 1Q26 earningsresults. In FY25, the company achieved operating revenue ofRMB30.44bn, down 16.5% YoY; net profit attributable toshareholders of the parent company of RMB1.35bn, down 54.6%YoY; and recurring net profit attributable to shareholders of theparent company of RMB1.32bn, down 55.4% YoY. In 1Q26, itachieved operating revenue of RMB6.86bn, down 22.9% YoY; netprofit attributable to shareholders of the parent company ofRMB236mn, down 65.9% YoY; and recurring net profitattributable to shareholders of the parent company ofRMB255mn, down 63.7% YoY.