China Coal Energy Company (1898) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 was CNY 92.98 billion (RMB92.984 billion), down 15% year-over-year, mainly due to lower coal prices and reduced proprietary coal trading revenue.

• Net profit attributable to shareholders was CNY 10.7 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.

• Operating cash inflow from production and sales rose 4.1% year-over-year to RMB15.74 billion, reflecting strong cash generation.

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

Financial highlights

• Gross profit was RMB21.36 billion, down 10.8% year-over-year; gross margin improved to 23.0% from 21.9%.

• EBITDA was RMB23.11 billion, down 12.4% year-over-year.

• Cost of sales dropped 16.1% to RMB71.625 billion; operating cost was CNY 68.79 billion, down 16.7% year-over-year.

• Basic EPS was RMB0.81, down from RMB0.96.

• Net finance costs decreased 18.9% to RMB1.275 billion; financial expenses decreased by CNY 298 million year-over-year.

Outlook and guidance

• Focus on high-quality development, deepening reform, and accelerating green and low-carbon transition in H2 2024.

• Plans to enhance core competitiveness, complete annual production goals, and improve risk management and internal controls.

• Commitment to stable production, safety, and environmental protection.