In June 2020, the National Development and Reform Commission and the National Energy Administration issued the Guiding Opinions on Energy Security in 2020, proposing to vigorously improve energy production and supply capacity, withdraw a number of backward coal production capacity this year, control the number of coal mines within 5000, and the output of large coal bases accounts for more than 96% of the national coal output. In the same month,Six departments, including the National Development and Reform Commission, issued the Key Points for the Work of Eliminating Excess Capacity of Coal in 2020, which calls for the continuous promotion of structural capacity reduction and systematic capacity optimization on the basis of consolidating existing achievements, so as to ensure that all regions fully accomplish their objectives and tasks in the closing year of the 13th Five-Year Plan. The Key Points of Work put forward that we should focus on the integration of coal and electricity, coal and chemical industry and the continuous development of resources.In Shanxi, Inner Mongolia, Shaanxi, Xinjiang and other large coal bases, we plan to lay out a number of large open-pit coal mines and modern underground coal mines with good resource conditions, strong competitiveness and high degree of security. We will deepen the reform of "releasing control clothing" in the coal industry, accelerate the production of coal mines under construction, and release advanced production capacity in a reasonable and orderly manner.To realize the orderly replacement of new and old coal production capacity. We will comprehensively promote the joint operation of coal and electricity, merger and reorganization, transformation and upgrading, and promote the healthy and harmonious development of coal and downstream industries. Efforts should be made to strengthen the construction of coal production, supply, storage and marketing system, continuously improve the quality of supply system, and enhance energy security and emergency control capabilities. In September 2021,The National Development and Reform Commission issued the plan to improve the dual control system of energy consumption intensity and total amount.

       According to the Plan, by 2025, the dual control system of energy consumption will be more sound, the allocation of energy resources will be more rational, and the utilization efficiency will be greatly improved; By 2030, the dual control system of energy consumption will be further improved, the intensity of energy consumption will continue to decline substantially, the total energy consumption will be reasonably controlled, and the energy structure will be more optimized. By 2035, the system of optimizing the allocation of energy resources and saving energy in an all-round way will be more mature and stereotyped.It strongly supports the realization of the goal of stable and declining carbon emissions after reaching the peak.

    Under the control of this national policy, Zhonghan International will continue to follow the pace of national policy, continue to regard coal as our company's key development industry, and cooperate closely with large coal enterprises in Xinjiang and Inner Mongolia, striving to become bigger and stronger in the coal supply market.