$CHINA SHENHUA(01088.HK) Everyone is focused on the oil game, but... not all truths are told... the most basic chemical knowledge and production capacity data have been deliberately erased by institutions.

1. Coal can replace oil as a raw material (coal chemical industry, industry consensus is that when oil prices are above $80, coal-to-oil conversion is cheaper);

2. New energy + ultra-high voltage transmission is replacing oil's fuel properties.

3. China is the world's largest coal producer (and accounts for more than half, far ahead of second place).

4. China is also the world's sixth largest oil producer.

Ignoring accounting issues and wealth distribution problems. Looking solely at resource endowment, China is even fully qualified to be an "energy exporter" like the Middle East.

Therefore, no matter how much AI competition intensifies, or what happens with Middle Eastern oil supply, the incremental space for hydropower is waiting for them at the finish line. So I am long-term bullish on hydropower leaders. Extending the timeline, the concepts of China Yangtze Power and Yalong River hydropower stations are enough to serve as our retirement security.