Incident description The company released its 2015 annual report today, achieving an EPS of 0.07 yuan, which is in line with expectations. Incident comment: Coke production and sales declined year over year. In 2015, the company's coke production was 1.074,500 tons, down 5.00% year on year, and 2,729,600 tons of raw coal washed, up 13.23% year on year. The recovery rate of refined coal was 50.03%, down 4.3 percentage points year on year. Crude benzene and methanol production were 1.49 and 86,500 tons, down 8.56% and 7.66%, respectively, from the previous year. Annual coke sales were 1,089 million tons, down 2.28% year on year; methanol sales were 85,900 tons, down 5.66% year on year; crude benzene sales were 16,300 tons, up 10.29% year on year. The decline in coke production and sales is mainly due to a decline in downstream steel commencement. The coking business lost gross profit, and the gross margin of chemical production declined year over year. In terms of production caliber, in 2015, the company sold 760.58 yuan per tonne of coke, a year-on-year decrease of 113.03 yuan, or 12.94%. The cost per ton of coke was 764.30 yuan, a year-on-year decrease of 103.37 yuan, a decrease of 11.91%. The gross profit per ton of coke was -3.72 yuan, a year-on-year decrease of 9.66 yuan, but the month-on-month loss was 27.61 yuan compared to the first half of the year, mainly due to strong cost-side control. In 2015, the gross margins of the company's crude benzene, methanol, and fuel oil decreased by 3.41, 9.11, and 14.06 percentage points, respectively, over the same period last year, mainly affected by weak product prices. Expenses for the period were well controlled, and financial expenses dropped significantly. In 2015, the company's total expenses for the period were 337 million yuan, a year-on-year decrease of 12.12%. Among them, sales and financial expenses decreased by 15.93% and 22.65%, respectively, and management expenses increased 2.80% year-on-year. Expenses fell 12.3% month-on-month during the fourth quarter. After deducting losses in the fourth quarter, losses were reduced month-on-month. The net profit attributable for the fourth quarter was $03 million, a decrease of $02 million month-on-month. Although the average price of major products fell month-on-month in the fourth quarter, benefiting from better cost and cost control, the loss after deduction narrowed from month to month. 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. Endogenous growth potential is strong. 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