The incident commented that the year-on-year increase in coke production in the first half of the year may be related to the recovery in industry sentiment. In the first half of the year, the company's coke production was 566,400 tons, up 1.74% year on year, completing 55.53% of the annual plan; methanol production was 10,000 tons, up 5.99% year on year, completing 54.12% of the annual plan. The gross profit of the coking business reversed losses, and the gross margin of methanol rose year on year. In the first half of the year, the company achieved revenue of 679.91 yuan per ton of coke, a year-on-year decrease of 22.03%; tonnes of coke, a year-on-year decrease of 26.26%; a gross profit margin of 13.82 yuan, a year-on-year reversal of loss of 45.16 yuan; coke business gross profit ratio of 2.03%, an increase of 5.63 percentage points; tonnes of methanol revenue of 1566.35 yuan, up 0.18% year on year; tonnes of methanol cost 450.33 yuan, down 23.82% year on year; methanol business margin of 1116.02 yuan, up 14.77% year on year; methanol business margin 71.25%, an increase of 9.06 percentage points over the previous year. Cost control over the period was strong, and financial costs declined significantly. The company's expenses for the first half of the year totaled 151 million yuan, a year-on-year decrease of 15.35%. Among them, sales expenses rose 10.56% year on year, mainly due to increased freight costs for sales of methanol; management expenses fell 11.89% year over year, mainly due to reduction in company staff reduction and lower wages; and financial expenses fell 41.12% year on year, mainly due to lower average interest rates on loans and lower interest on bonds. Benefiting from increased coke and methanol prosperity, the second-quarter results increased month-on-month. In the second quarter, the ex-factory price of grade 2 metallurgical coke in Qitaihe, where the company is located, rose 201.72 yuan/ton, and the methanol spot benchmark price rose 75.33 yuan/ton from month to month. The increase in coking and methanol prosperity helped the company increase gross profit by 0.14 million yuan month-on-month. The combined cost control was better. In the second quarter, the company achieved attributable net profit of 512 million yuan, an increase of 210 million yuan over the previous month, and reversed the loss of 20 million yuan month-on-month after deduction. Follow the follow-up progress of graphene and stabilizing light hydrocarbons projects, and maintain a “buy” rating. The company is actively seeking transformation and upgrading, and stabilizing light hydrocarbon projects and graphene projects is the main focus. We predict that the company's EPS for 16-18 will be 0.07, 0.10, and 0.11 yuan, respectively, and the corresponding PE will be 79, 54, and 49 times, respectively, maintaining the “buy” rating. Risk warning: The macroeconomy declined sharply, and project progress fell short of expectations