Shanxi Coal International Energy Co., Ltd., a listed subsidiary of Shanxi Coking Coal Group, earned a net profit of 4.26 billion yuan ($590 million) in 2023, slumping 38.53% from the previous year, the company said in its annual report.
Its annual revenue totaled 37.37 billion yuan, down 19.45% year on year, the report said.
The declines in profit and revenue were primarily attributed to reduced coal prices and declined coal sales volume during the reporting period. The company also carries out coal trading. Last year, the sales volume of coal bought from other mines increased 4.29%, but the revenue from this part dived 17.43%, indicating the impact of sales prices on its revenue and profit.
Nevertheless, the company's net assets reached 15.68 billion yuan, rising 4.19% compared to 2022. As the end of 2023, the company's asset-liability ratio stood at 49.45%, down 9.34 percentage points from the beginning of the year.
Shanxi Coal Int'l Energy's profits mainly stem from its coal businesses, including production, sales and logistics, which cover the needs from power utilities and metallurgical plants.
In 2023, the company churned out 38.98 million tonnes of coal, down 3.92% from a year ago. It sold 34.86 million tonnes of self-produced coal and 17.65 million tonnes of purchased coal, with 9.29 million tonnes being imported coal.
Meanwhile, the company focuses on enhancing the construction of advanced production capacity, ensuring stable coal supply. Its main mining areas have a total recoverable reserve of 760 million tonnes and a proven reserve of 700 million tonnes.
In 2024, the company aims to produce at least 33 million tonnes of coal and achieve revenue of no less than 33 billion yuan in anticipation of stable development of the coal industry backed by favorable policies in the year.
(Writing by yan.sun Editing by Alex Guo)
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