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Amid the challenging conditions of a sluggish coal market in 2025, Yankuang Energy of Shandong Energy Group managed to deliver outstanding results through targeted strategies and systematic efforts in the chemical industry; its total annual product output reached a record high； Profits are expected to surge by 1.75 billion yuan on a year-on-year basis; this strong profitability resilience has effectively offset the market pressures faced by the coal business, serving as a \"stabilizing factor\" for Yankuang Energy’s steady growth. Behind this achievement lies Yankuang Energy’s consistent commitment to its \"coal and chemicals integration\" strategy, as well as its ongoing efforts in areas such as safety management, technological upgrades, and collaborative innovation. Lay a solid foundation for safety, ensure stable operations and improve efficiency. Safety is the lifeline of chemical production, as well as a prerequisite for profit growth. The Yankuang Energy and Chemical Industry adheres to the principle of \"three priorities for safety,\" takes the construction of \"leakage-free factories\" as a key approach, and establishes a comprehensive risk prevention and control system to ensure the stable operation of its production facilities. Yankuang Energy’s chemical industry has diligently carried out dual-prevention measures, strengthening the control of both routine risks associated with “two key areas and one major hazard” as well as dynamic risks arising from maintenance and construction activities. In 2025, a total of 853 major risks were identified, and 49 hazards rated at level B or above were identified and rectified. The number of “process interruption” incidents decreased by 15% compared to the previous year, significantly enhancing the system’s stability and reliable operation. At the production site, improving the operating quality of the “two furnaces” has become key to ensuring stable production and enhancing efficiency. After months of optimization and adjustment by the technical team of Lunan Chemical’s Plant No. A powder gasifier, it was able to operate continuously for 246 days, with the load remaining stable at 100% for the first time ； The operator of Guohong Chemical’s Boiler No. 3 carefully adjusted the parameters, enabling the single boiler to keep the entire plant running steadily for 146 days, saving 3.65 million yuan per day ； Towards the end of its operation, the F gasifier at Yulin Energy Chemicals produced a steady amount of steam at 75 tons per hour, enabling one boiler to be shut down and resulting in direct savings of 34.5 million yuan. Yankuang Energy and Chemical Industry has strengthened the precise management of process parameters, increasing the number of control parameters for its chemical production systems to 665. The number of measurement points at various units and locations has increased by 21% compared to before, while the average product qualification rate has reached 99.92%, the highest level ever recorded. From the ammonia synthesis unit at Lunan Chemical to the methanol distillation system at Rongxin Chemical, precise control of each key parameter translates into stable production capacity and efficiency. Focusing on technological upgrade projects to boost momentum and strengthen resilience: In the face of downward pressure in the coal market, Yankuang Energy and Chemical Industry leverages technological upgrades to unlock potential and relies on new projects to increase output, thereby driving a continuous rise in profitability. By 2025, with a focus on \"reducing costs and increasing efficiency as well as promoting green development,\" Yankuang’s energy and chemical industry will have completed 32 key technical improvement projects, generating economic benefits amounting to 62.5026 million yuan; once all these projects are completed, the annual economic benefits are expected to reach 236 million yuan. The energy-saving renovation project for methanol distillation in the first phase of Rongxin Chemical aims to reduce overall energy consumption by optimizing the process flow, thereby bringing the production cost per ton of methanol to even lower levels ； Since the commissioning of the waste heat power generation renovation project at Guohong Chemical, a total of 1.9428 million kWh of electricity has been generated, generating economic benefits of 1.88 million yuan ； The technical team at Lunan Chemical carried out precise improvements and optimizations to the production system, reducing the propionic acid content in acetic acid products to below 450 ppm, thereby achieving the grade of Type I products; this alone generated savings of 7 million yuan. In the field of energy conservation and consumption reduction, Yulin Energy Chemicals implements staggered electricity usage and optimizes the operation of fans in its desulfurization systems. Lunan Chemical optimized its boiler feedwater system, achieving energy savings that amounted to 12.306 million yuan ； Measures such as reducing the pressure in the butyl acetate final product tower and recovering waste steam enabled steam savings that resulted in cost savings of 39.457 million yuan. Optimization of catalyst management also yielded significant benefits. The service life of the shift catalyst and sulfur recovery catalyst in Rongxin Chemical’s Phase II project is approximately 2 years longer than what was specified in the contract ； The coal-to-oil branch achieved an increase in daily production of 26 tons by adjusting the particle size distribution of the low-temperature Fischer-Tropsch synthesis catalyst ； Lunan Chemical successfully carried out the pretreatment for the recycling of spent cyclohexanone catalysts on its own for the first time, recovering 4.6 tons of such catalysts, thereby promoting green development through cost reduction and efficiency improvement. Deepening collaborative innovation, exploring new pathways, and optimizing the layout. Leveraging its core advantage of “integration of coal and chemicals”, Yankuang Energy’s chemical industry has achieved multiple breakthroughs in coal collaboration, technological innovation, and digital transformation, thereby establishing a long-term mechanism for risk mitigation and enhanced efficiency. The coordinated development of coal production ensures a stable and low-cost supply of raw materials for chemical manufacturing. Yankuang Energy and Chemical Industry strengthens the \"three-full\" management of coal, guiding various units to increase the utilization rate of internal coal through measures such as adding slag and drying. It is expected that by 2025, the proportion of internal coal used in chemical production units will reach 92.1%, an increase of 18.1% compared to the previous year. Guohong Chemical successfully conducted a trial combustion of 123 tons of biomass charcoal, paving the way for new approaches to green methanol production ； After the introduction of Rongxin Chemical’s new ultra-fine grinder, the coal slurry concentration in the first-phase system increased by 2%, the effective gas content rose by 1.39%, and the coal consumption per ton of methanol decreased by 0.03 tons compared to the previous level; it is estimated that this will generate annual savings of 21.68 million yuan. Technological innovation provides the core driving force for industrial upgrading. In 2025, Yankuang Energy and Chemical Industry invested 776 million yuan in research and development, carried out 29 R&D projects, won 1 science and technology award from the Shandong Coal Association, and obtained 65 authorized patents. Among these, the pilot-scale production of polyglycolic acid (PGA) from dimethyl oxalate at a rate of 3,000 tons per year was successful, marking an important breakthrough in the field of biodegradable engineering plastics and opening up new pathways for the development of high-end chemical products. Digital transformation makes production and operations more efficient and intelligent. The intelligent optimization system for methanol distillation in Yulin Energy Chemicals has been put into use, reducing steam consumption per ton of methanol by 2.5% ； The advanced control system for the purification units at the coal-to-oil subsidiary has been fully put into operation; units such as converters and heat recovery systems now operate in a \"black-screen mode,\" with the APC utilization rate reaching 99.82%, thereby significantly improving the operational stability of these units ； The MES for production execution at Guohong Chemical has been launched, providing a unified data source for business decision-making. From strengthening the foundation of safety to improving efficiency through technological upgrades, and from accelerating project implementation to fostering collaborative innovation, Yankuang’s energy and chemical industry overcomes market challenges through a series of concrete actions, demonstrating the profound advantages of the \"coal-chemical integration\" strategy in terms of industrial synergy and value creation.