Announcement on the Progress of the "Quality Return Double Enhancement" Action Plan

Securities Code: 000983 Securities Abbreviation: Shanxi Coking Coal Announcement No.: 2026-009 Shanxi Coking Coal Energy Group Co., Ltd. 2025 Annual "Quality Return Double Enhancement" Action Plan Assessment Report The Company and the entire Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions. Shanxi Coking Coal Energy Group Co., Ltd. (hereinafter referred to as the "Company") is implementing the guiding principles of "activating the capital market, boosting investor confidence," and "greatly enhancing the quality and investment value of listed companies, adopting more forceful and effective measures to stabilize the market and confidence." To protect shareholder interests, boost investor confidence, and promote the high-quality development of the Company, and in conjunction with the Company's development strategy, operating conditions, and financial situation, the "Quality Return Double Enhancement" action plan has been formulated. For specific details, please refer to the "Announcement on the 'Quality Return Double Enhancement' Action Plan" (Announcement No.: 2024-003) disclosed by the Company on the CNINFO website (http://www.cninfo.com.cn) on February 29, 2024. Since the release of the action plan, the Company has actively carried out and implemented various work measures, achieving good results and phased progress. The details are as follows: I. Implementing the "Strengthen Operations" Strategy to Enhance "Three Competitiveness" In 2025, the Company aims to achieve the goal of "building a leading enterprise in the international coking coal market" and implement the "Strengthen Operations" development strategy. By leveraging subjective initiative, the Company will focus on enhancing competitiveness in cost, technology, and market, with "safe, intensive, efficient, green, and intelligent production" as the main focus. The Company will spare no effort to ensure safety, protect the environment, strengthen operations, seek innovation, promote reform, and drive development, maintaining an overall safe, healthy, and stable development trend. In 2025, the Company achieved an operating revenue of 37.2 billion yuan and a net profit attributable to shareholders of the listed company of 1.2 billion yuan, with total assets of 108.8 billion yuan and net assets attributable to shareholders of the listed company of 35.9 billion yuan, and a return on net assets of 3.33%. (I) Enhancing Cost Competitiveness The Company has fully promoted "zero-based budgeting" and systematically issued eight hard measures to strengthen operational control, fostering a mindset of "living frugally" throughout the company. Management expenses and sales expenses decreased by 9.94% year-on-year. Non-core business and non-production investments are strictly controlled, with funds concentrated to ensure intelligent and core equipment upgrades. Six cost control centers have been established to vigorously promote cost driver analysis, with a focus on effectively controlling hidden costs and cost engineering. (II) Enhancing Technological Competitiveness Continuing to be driven by technological innovation, in line with the national "14th Five-Year Plan" for the modern energy system and the requirements for intelligent coal preparation plant construction, the "Intelligent Control Platform and 3D Model Display System" has been successfully developed and applied at the Taiyuan Coal Preparation Plant. This has effectively achieved staff reduction and efficiency improvement, establishing a benchmark for digital twin coal preparation plants in the coal industry. At Huajin Coking Coal, the "110 Working Method" for pillarless mining technology is being actively promoted, overcoming mining challenges. A total of 3865 meters of roadways have been reserved in 4 mines and 9 working faces, with 3884 meters reused, recovering an additional 435,100 tons of resources. The R&D investment intensity reached 2.78% for the whole year, with 29 new patent applications filed in 2025, and a cumulative total of 94 authorized patents, 11 software copyrights, and 8 trademarks. (III) Enhancing Market Competitiveness Marketing strategies have been optimized, adhering to "production based on sales," "production based on efficiency," and "production based on current conditions." The coal washing and processing system is being accelerated, and research and application of deep coal selection technology are being promoted. The focus is shifting from single coal sales to blended coal sales, effectively supporting "customized" production and "menu-based" supply, creating differentiated product competitive advantages. New channels are being actively explored, new demands are being developed, and the ability to serve the market and customers is continuously strengthening. (IV) Building New Energy Bases The construction of the Xingxian Coal Production Base is being actively promoted. In June 2025, the "Mineral Resource Exploration Permit" was obtained, and geological exploration work is currently underway. The implementation of this project will significantly enhance the sustainable development capability of the Company's main coal business and inject core competitiveness and new momentum into the high-end industrial upgrading. II. Focusing on Technological Empowerment to Promote Safe, Intensive, Efficient, Green, and Intelligent Production (I) Technological Empowerment for Safe Production First, high importance is attached to the prediction and forecasting of coal mine gas geological conditions, and the management of geological condition changes and gas gradient changes during mining and production processes. Second, a geological information database is being built, and geological transparency is being enhanced in mining workfaces. "Geophysical, drilling, and geochemical exploration" methods are used to progressively investigate hidden geological hazards such as water inrush in mining areas, planned areas, and other areas within a 3-5 year timeframe, eliminating blind spots in exploration and drainage. Third, the underground cage transportation method is being phased out, and the auxiliary transportation system is being converted to wireless and trackless continuous transportation. Fourth, the construction of green mines is being continuously promoted. Large-scale and disaster-prone mines have basically completed intelligent construction and upgrades. At least one intelligent fully mechanized mining face is being operated routinely in mines with a capacity of 3 million tons or more. Fifth, safety information technology is being adopted, and module functions are continuously developed and improved to gradually establish intelligent decision support functions, AI intelligent recognition systems, etc., promoting safety through science and technology, and continuously building an inherently safe production system. (II) Technological Empowerment for Green and Low-Carbon Development In accordance with the latest "Guidelines for Greenhouse Gas Emission Accounting and Reporting for Enterprises" and the "Notice of the Shanxi Provincial Department of Ecology and Environment on Strengthening Daily Supervision and Management of Carbon Market Data Quality," the Company has organized all power plants and cement plants to carry out carbon emission data quality control and standardize daily management, and analyze monthly carbon emission data according to relevant requirements. All coal-fired power plants and cement plants have completed the carbon allowance trading and compliance settlement for 2024. Based on market trading conditions, they have adopted a strategy of phased, small-batch transactions. The Company achieved revenue of 70.78 million yuan from the sale of surplus carbon allowances, demonstrating significant appreciation of carbon assets. Huajin Coking Coal has completed the upgrade and efficiency improvement of its first phase of gas power generation and the optimization of its gas drainage and utilization system, further improving gas utilization. It has drained and utilized 150 million cubic meters of gas, reducing carbon dioxide emissions by 224.6 million tons. The coal supply capacity and flexibility of Shuiyuang Coal Industry have been enhanced, and the level of green production has steadily improved. Unit product energy consumption is controlled within national limits, and resource comprehensive utilization rate has been significantly improved, achieving energy consumption and carbon emission targets. Malan Mine has carried out the creation of a zero-carbon mine, completing the land reclamation project for the first phase of the North 3 mining area, as well as the monitoring of mining subsidence and land reclamation, and the land reclamation projects for the first phase of the North 6 and North 7 mining areas, and the retirement of 56 outdated motors. Other projects are being advanced in an orderly manner. The total and concentration of pollutant emissions are controlled, and emission concentrations have basically achieved dynamic compliance. (III) Technological Empowerment for Industrial Upgrading The "One Mine, One Face" initiative has been implemented to deeply promote the optimization of mining areas and the construction of large working faces. Among the Company's 16 production mines, 8 have achieved the "One Mine, One Face" model, with 100% of advanced production capacity. The construction of intelligent systems is being strengthened to improve the level of intelligent equipment. In 2025, 3 new intelligent coal mines will be added, all of which have passed provincial intelligent acceptance evaluations. A total of 12 intelligent coal mines have been built, with 4 reaching an intermediate level of intelligence. Xiagou Mine has passed the intermediate acceptance of the first batch of national intelligent demonstration coal mines. Remote control systems have been basically completed for mines with a capacity of 1.2 million tons or more. The Digital Intelligence Future Research Center has been established to continuously empower safe, intensive, and efficient underground production. III. Improving Corporate Governance and Strengthening the Responsibility of the "Key Few" In 2025, the Company will continue to improve its modern corporate governance system, focusing on the standardized performance of duties and the checks and balances of powers and responsibilities of key governance entities such as controlling shareholders, actual controllers, directors, and senior management. This will continuously consolidate the foundation of governance operations and effectively protect the legitimate rights and interests of investors. The governance structure and system will be improved. In accordance with the "Company Law," "Guidelines for Listed Company Articles of Association," and other relevant laws, regulations, and normative documents, the company governance structure will be adjusted. The Audit Committee of the Board of Directors will perform the functions of the Supervisory Board. The revision and formulation of 16 corporate governance system documents, including the "Company Articles of Association," "Rules of Procedure for Shareholders' Meetings," and "Rules of Procedure for Board Meetings," have been systematically sorted out and completed. The responsibility of the "key few" will be continuously strengthened, urging them to further improve their performance capabilities, enhance compliance awareness, stimulate corporate vitality, and boost market confidence in the Company's development prospects. The Company has been recognized by the China Association of Listed Companies as a "2025 Excellent Case Study of Listed Company Board of Directors" and a "2025 Best Practice Case Study of Listed Company Board of Directors' Office." IV. Improving Information Disclosure Quality and Deepening Investor Relations Management The Company strictly abides by relevant laws and regulations, diligently fulfills its information disclosure obligations, and adheres to the principle of "truthful, accurate, complete, timely, and fair" information disclosure. With an open attitude, it strengthens voluntary disclosure and proactively discloses important information about the Company's industry dynamics, strategic plans, technological advancements, and market achievements that may affect investment decisions. This multi-dimensional approach showcases development potential and competitive advantages, reduces information asymmetry, and enhances capital market transparency and credibility. In 2025, a total of 117 documents were disclosed, and the quality of information disclosure has been continuously improved. From 2021 to 2025, the Company has consistently received an "A" rating in the SZSE information disclosure assessment for five consecutive years, ranking in the top 5.8% of listed companies nationwide. The Company adheres to active value transmission and uses sincere communication to transform market pressure into consensus for development. First, diverse channels are established for communication and exchange. Online, through the SZSE Interactive Platform and investor consultation hotlines, concerns are promptly addressed. Offline, through participation in strategy meetings, on-site research, and other activities, over 400 interactions with institutional and retail investors have been accumulated, with a 100% response rate, conveying the Company's intrinsic value. Second, precise responses are provided during key periods. Facing the overall decline in profitability in the coal industry and a weak market sentiment, multiple performance exchange meetings were held immediately after the release of regular and quarterly reports. Specific measures and quantified results for cost reduction were detailed, and project development plans and latest progress were explained. Third, the legitimate rights and interests of investors are protected. The Company actively seeks long-term patient capital support, conveys its intrinsic value, and encourages investors to actively participate in major decision-making. During the reporting period, the consent rate of minority shareholders was over 90%, achieving synchronized resonance between the Company and its investors. The Company has received honors such as the "Investor Relations Management Shareholder Return Award" from Securities Times, a subsidiary of People's Daily. V. Increasing Dividend Frequency and Actively Rewarding Investors The Company actively implements the "Market Value Management System" formulated at the end of 2024, attaches great importance to shareholder returns, and in conjunction with the Company's actual development and future development plans, after fully listening to investors' opinions and demands, optimizes dividend distribution rhythm and increases dividend frequency to enhance investor satisfaction. In 2025, the Company implemented an interim dividend, distributing cash dividends of 204 million yuan. Concurrently, a 2025 annual dividend is planned. This proposal has been reviewed and approved by the Board of Directors and requires shareholder approval. If approved by the shareholders' meeting, the profit distribution plan for 2025 will be based on a total share capital of 5,677,101,059 shares as of the equity registration date, with a cash dividend of 0.9 yuan (tax inclusive) per 10 shares distributed to all shareholders, totaling 511 million yuan. The combined interim and annual dividends account for 59.57% of the net profit attributable to shareholders of the listed company in the consolidated financial statements for the period. Since its listing, including the planned 2025 dividend distribution, the Company has cumulatively distributed over 26.808 billion yuan in dividends (including 24.53 billion yuan in cash dividends). In the past five years, cash dividends amounted to 16.6 billion yuan, with an average dividend payout ratio of 61.81%, providing substantial and stable investment returns to investors. Looking ahead, the Company will adhere to strengthening its foundation, focusing on overcoming challenges, accelerating the construction of a modern industrial system, deepening the "Strengthen Operations" development strategy, continuously enhancing the three competitiveness areas, accelerating the development of new quality productive forces, comprehensively deepening transformation and upgrading, unswervingly promoting high-quality development, and striving to build a leading enterprise in the international coking coal market. With excellent performance, standardized corporate governance, and high-quality information disclosure and active investor returns, the Company will effectively enhance investor satisfaction, continuously improve its investment value, and actively contribute to stabilizing the market and boosting confidence. Hereby announced. Board of Directors of Shanxi Coking Coal Energy Group Co., Ltd. April 27, 2026