China Coal Energy Company (1898) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB92.98 billion, down 15% year-over-year, mainly due to lower coal prices and reduced proprietary coal trading revenue; net profit attributable to shareholders was RMB10.7 billion, down 16% year-over-year.

• Commercial coal production was 66.5 million tons, stable year-over-year; sales of self-produced commercial coal rose 2.1% to 66.19 million tons.

• EBITDA fell 12.4% to RMB23.11 billion; basic EPS was RMB0.81, down from RMB0.96.

• Net operating cash inflow from production and sales rose 4.1% to RMB15.74 billion.

• Interim dividend of RMB0.221 per share declared, totaling RMB2.94 billion.

Financial highlights

• Gross profit decreased 10.8% to RMB21.36 billion; gross margin improved to 23.0% from 21.9%.

• Operating cost decreased 16.7% year-over-year to RMB68.79 billion; cost of sales dropped 16.1% to RMB71.63 billion.

• Net finance costs decreased 18.9% to RMB1.28 billion due to lower debt and optimized structure.

• Gearing ratio improved to 26.9% from 28.5%.

• Net cash from operating activities was RMB14.89 billion, down 12.6% year-over-year.

Outlook and guidance

• Focus on high-quality development, deepening reform, and accelerating green and low-carbon transformation.

• Plans to enhance energy supply, expedite key project construction, and improve technological innovation.

• Maintain stable production, improve R&D, and strengthen risk management and internal controls.