According to the CICC research report, there is not enough coal production capacity. We believe there is no excess production capacity in the coal industry. The root cause of this year's decline in coal prices exceeding expectations is excessive production capacity. Continued high-intensity production that exceeds approved production capacity poses challenges to safety and environmental protection. We judge that if supply and demand are excessively relaxed, the policy may still have some room to increase and tighten supply in a reasonable and legal name. At the same time, due to limited new production capacity and the gradual withdrawal of old and exhausted production capacity, we believe that the risk of excessive growth in overall production capacity is low.

According to the CICC research report, there is not enough coal production capacity. We believe there is no excess production capacity in the coal industry. The root cause of this year's decline in coal prices exceeding expectations is excessive production capacity. Continued high-intensity production that exceeds approved production capacity poses challenges to safety and environmental protection. We judge that if supply and demand are excessively relaxed, the policy may still have some room to increase and tighten supply in a reasonable and legal name. At the same time, due to limited new production capacity and the gradual withdrawal of old and exhausted production capacity, we believe that the risk of excessive growth in overall production capacity is low.