China Coal Energy Company (1898) H2 2024 earnings summary

Executive summary

• 2024 revenue was RMB189.4 billion, down 1.9% YoY; coal output reached a record 137.57 million tonnes, up 2.5%, and self-produced coal sales rose 2.8%.

• Total profit fell 44% to CNY31.58 billion; net profit attributable to parent shareholders declined 1.1% to CNY19.323 billion.

• Lower self-produced coal prices weighed on earnings, partly offset by lower coal unit costs and finance costs.

• Strategy emphasizes energy supply security, coal-power-chemical integration, efficiency, innovation and lower-carbon development.

Financial highlights

• Operating cash flow was CNY34.14 billion, down 20.5% YoY; EBITDA decreased 9.3% to RMB40.59 billion.

• Coal price declines reduced profit by CNY5 billion; lower unit costs added CNY3.486 billion and finance costs fell CNY600 million.

• Net finance costs dropped 20.3% to RMB2.39 billion, reflecting lower interest-bearing liabilities.

• 2024 capital expenditure was CNY15.2 billion, 95% of the CNY16 billion plan.

• Gross profit fell 8.8% to RMB37.92 billion; gross margin declined to 20.0% from 21.5%.

Outlook and guidance

• 2025 targets include 133 million tonnes of commercial coal sales, 1.34 million tonnes of polyolefin and 2.05 million tonnes of urea.

• 2025 capex is planned at CNY21.6 billion, up 41.7% YoY, prioritizing coal, coal chemicals, power and new energy.

• Libi, Weizigou, Yulin Phase II and Liquid Sunshine are expected to start operations in 2026; Wushenqi is expected in 2027.

• 2025 production growth is expected to rely mainly on stable operations at existing mines; Libi and Weizigou remain under construction.

• Priorities include stable revenue and profits, cost control, risk management and innovation.