Henan Shenhuo Coal Industry and Electricity Power (000933) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥18.22 billion, down 4.65% year-over-year; net profit attributable to shareholders was ¥2.28 billion, down 16.62% year-over-year, mainly due to lower coal sales volume and prices.

• Coal and aluminum remain core businesses, with coal production and sales at 3.23 and 3.15 million tons, and aluminum production and sales at 749,900 and 749,500 tons, both achieving about half of annual plans.

• The company completed the transfer of a 51% stake in Shenhuo Power, resulting in a one-time investment gain of ¥215 million.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥18.22 billion, down 4.65% year-over-year.

• Net profit attributable to shareholders: ¥2.28 billion, down 16.62% year-over-year.

• Basic EPS: ¥1.019, down 16.41% year-over-year.

• Net cash flow from operating activities: ¥4.07 billion, down 11.71% year-over-year.

• Total assets at period end: ¥58.55 billion, up 1.19% from year-end 2023.

• Net assets attributable to shareholders: ¥20.39 billion, up 2.85% from year-end 2023.

• Non-recurring profit and loss: ¥127.5 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• Coal prices expected to stabilize in H2 2024 as demand policies continue.

• Aluminum demand remains robust, driven by new energy vehicles and photovoltaics; industry faces stricter energy and carbon controls.

• Company will accelerate key projects, including Yunnan 400,000-ton carbon project and 110,000-ton green aluminum foil project.

• Focus on cost reduction, efficiency improvement, and product innovation to enhance competitiveness.