Production was stable in the first half of the year, and production declined slightly year over year. The company produced 556,700 tons of coke in the first half of the year, down 0.59% from the previous year, and the amount of washed raw coal was 1,419,800 tons, up 21.35% year on year, and the refined coal output rate was 47.80%. Crude benzene and methanol production in the first half of the year were 0.79 and 43,400 tons, respectively, down 3.66% and 11.43% from the previous year, and the production of refined washing oil was 15,200 tons, down 27.27% year on year. Weak coke prices are compounded by rising costs, losses in the coke business, and the gross margin of chemical production has declined slightly. The coke market was sluggish in the first half of the year due to the decline in downstream production growth and storage removal. In terms of production caliber, the company sold 872 yuan per tonne of coke, a year-on-year decrease of 27.65 yuan, or 3.07%. The cost of a ton of coke was 903.35 yuan, up 16.90 yuan, and the gross profit per ton of coke was 31.33 yuan, a year-on-year decline of 44.55 yuan, from a slight profit in the same period last year to a loss. The gross margins of methanol and crude benzene fell 1.88 and 1.55 percentage points year-on-year respectively in the first half of the year, but profitability remained at a good level. Expenses increased slightly during the period, and the large increase in sales expenses stemmed from changes in settlement methods. In the first half of the year, the company's expenses for the period totaled 181 million yuan, up 3.19% year on year. Among them, sales expenses increased 37.96% year on year, mainly due to the change in settlement method after May '14 and the company's advance payment of freight charges. Management and finance expenses in the first half of the year decreased by 6.63 and 6.76%, respectively. Losses after deductions narrowed in the second quarter. The company's non-recurring profit and loss of 121 million yuan in the first half of the year was mainly due to the company's capital increase and expansion of Longmei Tiantai's shares and re-measured the profit of 144 million yuan from its original shareholding. In the first half of the year, net profit after deduction lost 36 million yuan; in the second quarter, after deduction, the company achieved imputed net profit of -12 million yuan, and the amount of loss narrowed from month to month. Focusing on the subsequent progress of graphene transformation, it is planned to change 10 to 15 in the medium term to maintain the “buy” rating. We predict that the company's EPS for 15-17 will be 0.17, 0.22, and 0.31 yuan, respectively, and the corresponding PE will be 101, 79, and 57 times, respectively, maintaining the “buy” rating.