The incident company released its 2015 annual report. During the reporting period, it achieved operating income of 1,523 billion yuan, a year-on-year decrease of 19.77%; net profit attributable to the parent company of 91.1762 million yuan, a year-on-year increase of 29.43%; net profit after deduction of deduction of 454.336 million yuan, a year-on-year decrease of 308.81%; and basic earnings per share of 0.07. Briefly comment: The sluggish performance of the traditional coal coke sector is affected by the continued downturn in the coal and steel industry, and the performance of the company's traditional coke sector is sluggish. According to simple estimates, the price of the company's main product, coke, is 750.42 yuan/ton, down 135.38 yuan/ton; foam coal is 276.42 yuan/ton, down 58.49 yuan/ton; crude benzene is 3056.45 yuan/ton, down 2423.49 yuan/ton year on year. Affected by falling prices of major products, the company's coal coke products achieved operating income of 970 million yuan, a year-on-year decrease of 14.79%, operating costs of 972 million yuan, a year-on-year decrease of 11.84%, and the gross profit margin of the coal coke sector -0.21%, a decrease of 3.35 percentage points over the previous year. The main business performance of the chemical and electric heating sector was also poor due to falling international oil prices. Prices of the company's main products, such as methanol, oil washing, and asphalt blending components, continued to decline, while sales volume also shrank, resulting in the company's chemical sector revenue of 358 million yuan, a year-on-year decrease of 36.85%, operating costs of 156 million yuan, a decrease of 21.96% over the previous year, and a gross profit margin of 56.34%, a year-on-year decrease of 8.33 percentage points. At the same time, as the relevant government departments lowered the sales prices of thermoelectric products, the operating income of thermoelectric products decreased by 6.40% compared to the same period last year; the amount of electricity sold in the current period increased by 13.3% compared to the same period last year, resulting in a 9.78% increase in thermoelectric operating costs compared to the same period last year. Due to the price reduction of thermoelectric products in this period, production costs have basically not changed much, so the gross margin of thermoelectric products decreased by 10.98% to 25.51% compared to the same period last year. Joint ventures also had a significant impact on current profits. During the reporting period, the company increased its investment in the original joint venture Shuangyashan Longmei Tiantai Coal Chemical Co., Ltd., increasing capital by 52.8672 million yuan. After the capital increase, the company's original shareholding increased from 49% to 51%. After being included in the scope of the merger, the profit generated by re-measuring the original shares according to fair value was 144.282 million yuan, and the premium income generated increased the investment income for the current period. Focus on the progress of the company's graphene transformation project. Covering graphite and graphite deep processing business with graphene as the core, which has been given an “increased holding” rating for the first time, is the main direction of the company's future transformation and upgrading. In terms of resources: During the reporting period, the company obtained the right to prospecting for Dongrun graphite in Qitaihe City through an auction, with a total survey area of 16.35 square kilometers. As of December 31, 2015, the company had discovered 56 graphite ore bodies with a total horizontal thickness of 414.5 meters. It was discovered that the ore volume was about 41.45 million tons, and the amount of crystalline minerals was about 3.1088,800 tons. It is a large-scale mining area, providing sufficient raw material guarantees for the company's development of graphene and graphite deep processing projects. It is expected that the company's graphite exploration work will be completed by the end of 2016, and an inspection report will be formed in early 2017. Technical aspects: On January 20, 2016, the company's self-developed patent successfully passed the pilot test, and produced graphene products with different specifications, such as 1 to 5 layers and 1r_10 layers, etc., of high quality and superior performance. The products were tested by the authorities and reached the predetermined targets. This technology will provide valuable process optimization experience for the 100 tons/year graphene project, which was put into production in late 2016, and is at the leading level in China. The company will make full use of existing resources in the Dongrun graphite mining area and rely on the purchased patented graphene preparation technology of Qingdao Jinmo Automation Technology Co., Ltd. to create a new industry of graphite and graphite products and transform into a new materials and new energy industry, but the progress and profitability of subsequent graphene projects still require continued attention. Considering the obvious resource advantages of the company's location and the company's technical research and accumulation in recent years, we covered and gave it an “increase in holdings” rating for the first time. It is estimated that the company's 2016 and 2017 EPS will be 0.05 and 0.09, respectively.