Henan Shenhuo Coal Industry and Electricity Power (000933) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥38.37 billion in 2024, up 1.99% year-over-year; net profit attributable to shareholders was ¥4.31 billion, down 27.07% year-over-year, mainly due to lower coal prices and higher alumina costs impacting profitability.

• Completed production of 1.63 million tons of aluminum products and 6.74 million tons of coal, with aluminum output exceeding plan and coal output below plan.

• Proposed a cash dividend of ¥5.00 per 10 shares, with total cash dividends for 2024 reaching ¥1.80 billion, representing 41.78% of net profit.

Financial highlights

• Revenue: ¥38.37 billion (+1.99% year-over-year); net profit attributable to shareholders: ¥4.31 billion (-27.07% year-over-year); basic EPS: ¥1.93 (-27.17% year-over-year).

• Operating cash flow: ¥7.72 billion (-31.02% year-over-year); total assets: ¥50.60 billion (-12.54% from previous year-end); net assets: ¥21.68 billion (+9.34% from previous year-end).

• Gross margin for coal: 16.66%; for aluminum: 25.11%.

• R&D investment: ¥449 million, 1.17% of revenue.

Outlook and guidance

• 2025 production targets: 1.7 million tons aluminum, 7.2 million tons coal, 66,000 tons carbon, 135,000 tons aluminum foil, 215,000 tons cold-rolled products.

• Revenue target for 2025: ¥38.47 billion; profit before tax: ¥5.33 billion.

• Focus on high-quality growth, cost control, green transformation, and technological innovation.