Shanxi Lu'an Environmental Energy Development (601699) H2 2024 earnings summary

Executive summary

• 2024 revenue was RMB 35.85 billion, down 16.89% year-over-year, with net profit attributable to shareholders at RMB 2.45 billion, down 69.08%.

• Coal market downturn, lower product prices, and reduced sales volumes drove the decline in both revenue and profit.

• The company maintained stable operations, with raw coal output of 57.57 million tons and commercial coal sales of 52.25 million tons.

• Significant progress in intelligent mining, environmental protection, and technological innovation, with 9 mines achieving smart mine status.

• Board proposes a cash dividend of RMB 0.41 per share, totaling RMB 1.23 billion, representing a 50.07% payout ratio.

Financial highlights

• Operating income: RMB 35.85 billion, down 16.89% year-over-year.

• Net profit attributable to shareholders: RMB 2.45 billion, down 69.08% year-over-year.

• Basic and diluted EPS: RMB 0.82, down 69.06% year-over-year.

• Operating cash flow: RMB 4.96 billion, down 43.92% year-over-year.

• Gross margin for coal: 39.48%, up 12.74 percentage points year-over-year.

Outlook and guidance

• 2025 industry outlook: coal supply and demand expected to remain loose, with continued price pressure.

• Company targets coal output above 50 million tons and revenue over RMB 30 billion for 2025.

• Focus on high-quality growth, intelligent mining, green development, and risk management.