Shan Xi Hua Yang Group New Energy (600348) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 12.20 billion, down 20.85% year-over-year due to lower coal sales volume and prices.

• Net profit attributable to shareholders was RMB 1.30 billion, a 56.87% decrease compared to H1 2023.

• Coal sales volume dropped 20.73% year-over-year to 17.10 million tons; average coal price fell 8.71%.

• Power generation surged 457.97% year-over-year, partially offsetting coal business decline.

• Company secured new coal exploration rights, increasing reserves by 630 million tons to nearly 7 billion tons.

Financial highlights

• Operating income: RMB 12.20 billion, down 20.85% year-over-year.

• Net profit attributable to shareholders: RMB 1.30 billion, down 56.87% year-over-year.

• Operating cash flow: RMB 140 million, down 95.44% year-over-year.

• Basic and diluted EPS: RMB 0.36, down 56.63% year-over-year.

• Gross margin for coal segment: 38.16%, down 10.28 percentage points year-over-year.

Outlook and guidance

• Company will continue to optimize product and market structure, focus on high-quality development, and promote intelligent mining.

• Emphasis on expanding new energy and advanced materials, including sodium-ion battery and photovoltaic projects.

• Will closely monitor macroeconomic and coal market trends, flexibly adjust production and sales strategies.