A：Founded in 1995 and headquartered in Beijing, China Xuyang Group has developed into a large enterprise group with two pillar industries of chemical industry and coke, as well as hydrogen energy industry and operation management service business. The Group has established production parks and companies in many countries around the world and many provinces, municipalities and autonomous regions in China, forming an integrated global industrial chain, supply chain and operation management system. On March 15, 2019, Xuyang was listed in Hong Kong and was included in a number of global sub-indices, becoming the underlying stock of Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect.

A：Xuyang Group adheres to the vertical integration development mode and the park development mode, and has built a collaborative circular economy covering coal chemical industry, fine chemical industry, petrochemical industry, new energy and new materials. The Group has achieved rapid scale expansion through light assets, relying on six advantages such as resource cost, to open up the strict hydrogen energy industry chain for intelligent storage and transportation. In addition, Xuyang deeply cultivates the chemical coke industry and adopts a vertically integrated management model to form nine core competencies and competitive advantages. Through refined management, it reduces costs and improves quality, and follows automation, informatization, digitalization, intelligence, and industrial Internet. Path transformation and upgrading to build a unique industrial digital business logic.

A：Through the three major innovations of business model, institutional mechanism and scientific and technological products, Xuyang Group has established a three-level R & D system, formed a full R & D industry chain from creativity to industrialization, and realized the breakthrough of some neck-sticking technologies and the optimization and upgrading of existing devices. At the same time, Xuyang pays attention to all-staff innovation, comprehensively enhances the ability system of innovation-driven development, and integrates sustainable development and ESG concepts into corporate governance, continuously improves the ESG system and improves the overall level. The Group also strengthens the lifeline of safety, environmental protection and quality, and builds an intrinsically safe factory management model to ensure industry-leading product quality and full traceability.

A：In the past year, despite the difficult macro environment, Xuyang Group still achieved revenue of about 39.3 billion RMB, profit of about 58 million RMB, and net cash flow increased by 40% year-on-year to 3.065 billion RMB, showing stable operating ability and good profitability. In the future, on the basis of optimizing the global supply chain, Xuyang will vigorously promote customized services and build a market-oriented and customer demand-oriented service operation system. At the same time, we should strengthen scientific and technological innovation, promote the upgrading of service-oriented manufacturing industry, consolidate and enhance competitive advantages, maintain steady growth of business and profits, strive to become an excellent listed company, and create greater value for shareholders and investors.

A：Under the current poor macro environment of the coke industry, our company can better cope with the pressure brought by falling prices by virtue of its leading position in the industry. We believe that with the changes in the reduction policy and product prices, especially after the full launch of virtual goods in the market by 2028, the profitability of the coke industry will be further improved. In addition, we will also pay attention to and strengthen the bottom collision prevention measures, and expect to achieve further strengthening of profitability in 26 years. In the face of industry difficulties, we have actively taken measures to reduce costs and increase per capita production, as early as 21 years. We have nine campuses, each exploring effective ways to reduce costs while increasing productivity. In terms of environmental protection, we continue to increase investment, which is close to 9.6 billion yuan, and promote green power landing and energy saving and carbon reduction projects to ensure that the coke chemical industry will not only not cause damage to the environment, but also achieve sustainable development.

A：In our chemical sector, the market price of 600000 tons of methanol is expected to rise to about 2600 yuan in 26 years, an increase of about 15% over the current level. Due to the increase in methanol prices, it will bring 100% profit growth to our group. In addition, the profits and prices of caprolactam products have also increased in the past 25 years. Although the industry has experienced losses, many companies have taken actions to recover the profitability of the industry. It is estimated that the average price of caprolactam in 26 years will reach about 11250 pieces per ton, up 27% from 25 years.

A：We emphasize quantifying the company's stock performance, focusing on asset quality and operations, and improving capital market transparency through various means, such as stock repurchase programs and employee stock ownership plans. Our Hong Kong Stock Connect holdings continue to grow, 30% of our net profit is used for dividends, and we have paid dividends 15 times since listing, totaling about HK $4 billion, demonstrating a responsible attitude towards shareholders.

A：Although China's production capacity has declined, production capacity in other parts of the world, especially India, is still growing rapidly. Therefore, we are actively expanding to other countries and regions, for example, in Indonesia, there is a significant increase in production capacity. At the same time, we also pay attention to the different development policies of countries and regions, eliminate backward production capacity, and encourage the continued development of high-quality production capacity, especially projects that are in line with the direction of national industrial policies, such as the adjustment of production capacity of more than ten meters.

A：There are cyclical fluctuations in the coke market, which are reflected in the process of a wave of decline and then recovery. This is related to the concept of inflation in economics and is affected by the linkage of steel prices. The company will analyze the coke market with reference to the steel market cycle in the macro economy.

A：The company has research institutes and master's talents, currently has 371 employees, and conducts in-depth research on the coke market, including but not limited to gold loans, steel-side fundamentals, cost-side, futures operations, and policy and price control. The company prides itself on the fact that its coke price forecasts are more than 90% accurate.

A：The company adopts the pre-sale policy to control the collection of accounts within 20 days, so as to ensure that the cash flow is stable and unaffected. The company is not a pure coal company, but a service-oriented manufacturing enterprise, focusing on the manufacture of teaching materials and chemical products. The company has a unique mechanism, system and efficient coal blending technology to reduce costs, while the logistics system also improves delivery efficiency. Investors have the opportunity to experience the advantages of the company's campus facilities and services on the ground during the roadshow event in June.

A：The company's main production park is located in northern China, and actively explore the global market, starting from the Yili Park to build a global marketing network, promote the upgrading of the industrial chain, and achieve explosive growth. At present, there are 18 coking brand cluster members, accounting for 37% of the total production capacity of independent coke enterprises, and is expected to expand to 30, with a market share of nearly 48%.

A：The company has confidence in the development trend of the coke market, and can respond flexibly according to the market price trend, and can adapt and adapt up or down. At the same time, the company is committed to reducing disorderly competition in the industry, and hopes that there will be no more serious internal rolling in the future.

A：The chemical sector is greatly affected by market price fluctuations, especially in the context of war and inflation, product prices have a strong bargaining space. Taking methanol as an example, the company has a production capacity of 600000 tons, and the cost is 200 yuan/ton lower than that of similar enterprises, which enables the company to maintain its competitive advantage in the market price fluctuation, and the product price rotation is obvious.

A：Our radiation area is mainly concentrated in North China, and it is the second largest in the world in terms of production capacity, especially the industrial park in Hohhot, Inner Mongolia, with a processing capacity of 300000 tons.

A：Our products, such as clear fancy wash oils, have little alternative in the field of application. We have a highly automated operation capability, with an automation rate of 69%, and the quality of sun-dried salt is the highest in the country. In addition, our export business is not limited to small areas, but also as far as Brazil and other countries, enjoy the lowest tax treatment. At present, the market price has come out of the bottom to start the upward cycle.

A：New materials and chemicals are the main directions of our company's future development, especially in new materials. We have formulated a five-year development plan and are expected to complete the seventh five-year plan in 2023. At the same time, our R & D investment has reached about 2 billion RMB per year, and professional and technical personnel will continue to increase. For example, we have achieved results in the field of amino alcohols, which was put into production in July of the previous year.

A：In the fields of traditional coatings, processes and pharmaceutical synthesis, we have successfully applied the concept of new energy to practice, especially in new energy companies, which have shown explosive growth. For example, the installation project in cooperation with PetroChina has invested a lot of money through the research and development of green chemical technology, including the LED research and development cost of 89 million yuan, which has achieved the results of star products.

A：We are actively promoting the research and development of six new product lines. Although some projects are relatively slow, we firmly believe that the chemical sector will have an important influence in the future sunset industry.

A：The positive news in hydrogen energy production is frequent and closely related to the carbon neutral target. It is expected that hydrogen energy will become one of the mainstream energy sources in the next 35 to 60 years. We are willing to expand the field of hydrogen energy in the seventh five-year plan, not only in the existing application scenarios, but also in the battery utilization space and other potential fields. At the same time, we are actively deploying the transformation of the hydrogen energy industry, and the scale of investment will increase day by day, realizing the characteristics of scale, diversification and rationalization. At present, the Group has a strong coking production capacity, if the policy is favorable, the growth potential of hydrogen energy business is huge.

A：Blood oxygen companies can reach that level. We have war stations in Binzhou and Hohhot, and we are accelerating our capacity improvement to process seven tons of products per day. At present, the operation is in good condition and has achieved profitability. Although hydrogen has not yet received government subsidies, the government supports the development of the industry. In addition, we are also carrying out multi-industry demonstration system and multi-level layout of new application ecological chain.

A：The hydrogen energy business will focus on expanding the supply advantage, ensuring the supply of low-cost hydrogen sources, and starting to build a multi-industry demonstration system and a new application ecological chain. At the same time, we will also focus on promoting each project, including liquid crystal medium carbon, liquid crystal locomotive, etc., and continue to pay attention to the development trend of the industry.

A：The eight key points of future development mainly involve cost reduction from procurement and logistics freight to cost optimization using AI, small programs and manual configuration calculation methods. In addition, we will expand the scale of operation and management. At present, we have 25 years of operation experience, with a management scale of 2.28 million tons, and carry out operation and management projects in many places across the country.

A：At present, the company does not have a coking plant in Shanxi, only in Shanxi coal procurement, mainly with Shanxi coking coal cooperation, there is a long-term agreement to guarantee a fixed quantity and adjustable prices. Shanxi coking coal has performed well in safety production and management, so the Shanxi accident has no direct impact on the company's coking coal business. At the same time, due to the rise in market prices and the signing of long-term agreements between the company and a number of suppliers, although the supply of raw materials is affected, the overall supply is still relatively stable.

A：Affected by the events in the Middle East, the price of methanol has risen sharply, mainly because the Middle East is the largest source of methanol imports, and domestic methanol production is restricted by raw material imports. At present, the phased pilot price has exceeded 3,000 yuan, and it is expected that even if it returns to normal, high prices will become the norm. In the long run, even if the production facilities in the Middle East are restored, it will take a long time for construction to resume, and the prices of downstream products are expected to remain high. However, we do not believe that the price of more than 3000 yuan will continue throughout the year, and it is expected that there will still be support above 2600 this year.