Huaibei Mining (600985) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 37.24 billion, down 0.17% year-over-year; net profit attributable to shareholders was RMB 2.94 billion, down 18.19%.

• Coal and coal chemical product prices and sales volumes declined, impacting main business income and profit.

• Coal product output for H1 2024 was 1,032.34 million tons, down 8.86% year-over-year; coal sales volume dropped 18.17% to 803.29 million tons.

• Coal sales revenue decreased 26.23% year-over-year to ¥9.19 billion.

• No interim dividend or capital reserve to share capital conversion was proposed.

Financial highlights

• Operating income: RMB 37.24 billion, down 0.17% year-over-year.

• Net profit attributable to shareholders: RMB 2.94 billion, down 18.19% year-over-year.

• Basic EPS: RMB 1.13, down 22.07% year-over-year.

• Net cash flow from operating activities: RMB 5.40 billion, down 12.16% year-over-year.

• Gross margin and net margin both declined due to lower coal and chemical prices.

Outlook and guidance

• Domestic coal demand expected to remain stable in H2 2024, with long-term coking coal prices likely to stay high.

• Company will focus on cost control, efficiency improvement, and advancing key projects.