According to the Huatai Securities Research Report, on August 27, 2026, the State Mine Safety Administration issued Mine Safety (2026) No. 84 “Opinions on Further Strengthening the Work Safety Work of State-owned Coal Mining Enterprises” to strengthen the safety management of state-owned coal mines in nine areas, including shifting safety inspection responsibilities, normalization of safety inspections, and determination of production and operation indicators. We believe that unlike the short-term safety supervision measures that have focused on special investigation and centralized rectification since the “May 22” accident, Document No. 84 changed safety supervision from phased inspections to frequent and institutionalized management within enterprises, and extended from the shutdown and extension of private mining, which was the focus of the early market, to state-owned enterprises with a higher share of supply. State-owned coal companies are the main force in China's coal insurance supply. As of 2022, state-owned coal enterprises account for more than 70% of China's coal production. Its restrictions on coal production are more continuous, and the flexibility of coal supply in the medium term may decline further. Huatai Securities reiterated its optimism that coal prices would move upward.

According to the Huatai Securities Research Report, on August 27, 2026, the State Mine Safety Administration issued Mine Safety (2026) No. 84 “Opinions on Further Strengthening the Work Safety Work of State-owned Coal Mining Enterprises” to strengthen the safety management of state-owned coal mines in nine areas, including shifting safety inspection responsibilities, normalization of safety inspections, and determination of production and operation indicators. We believe that unlike the short-term safety supervision measures that have focused on special investigation and centralized rectification since the “May 22” accident, Document No. 84 changed safety supervision from phased inspections to frequent and institutionalized management within enterprises, and extended from the shutdown and extension of private mining, which was the focus of the early market, to state-owned enterprises with a higher share of supply. State-owned coal companies are the main force in China's coal insurance supply. As of 2022, state-owned coal enterprises account for more than 70% of China's coal production. Its restrictions on coal production are more continuous, and the flexibility of coal supply in the medium term may decline further. Huatai Securities reiterated its optimism that coal prices would move upward.