Summary of China Shenhua's Conference Call Company Overview - **Company**: China Shenhua Energy Company Limited - **Industry**: Coal and Power Generation Key Points and Arguments Industry and Market Dynamics - China Shenhua is actively responding to pressures in the coal market by expanding production, increasing sales, and reducing costs to maintain a competitive edge. The complete cost of coal resources remains below 300 RMB, ensuring profitability [2][3] - In the first half of 2025, coal prices experienced a significant decline, with spot prices at northern ports dropping over 25% compared to the previous year. However, a rebound was noted in July due to rising temperatures and increased electricity demand [4][5] - The coal industry is currently experiencing a rebound after a period of significant price drops, but long-term pressures from the development of new energy systems are expected to keep prices under pressure in the fourth quarter and beyond [6] Company Performance and Strategy - China Shenhua's long-term contract signing and fulfillment rates are strong, with a high reliance on long-term contracts for coal supply to power plants, which helps stabilize supply amidst market fluctuations [2][7] - The company has implemented effective cost control measures, resulting in improved performance in production costs, including labor and consumable costs [3] - Despite the decline in coal prices, thermal power remains the mainstay of electricity supply, indicating that the importance of coal and thermal power will not change easily [2][9] Financial Outlook and Dividends - China Shenhua maintains a high return and sustainable dividend policy, with a three-year return plan (2025-2027) set at no less than 65%. The company is also exploring mid-term profit distribution to support this policy [2][18] - The company reported a profit increase in Q2 2025, attributed to effective cost control measures, and plans to continue these efforts in the second half of the year [20] Challenges and Future Considerations - The company faces challenges from price inversions and changes in supply-demand relationships, with long-term contract prices currently at 666 RMB while spot prices are at 632 RMB [12] - There are no clear indications of a new round of supply-side reforms, but ongoing market changes and structural adjustments are being monitored [8] - The construction of a unified national market is expected to have a profound impact on the coal and electricity sectors, promoting self-regulation and competition [15] Operational Measures - China Shenhua has initiated a "100-day safety production campaign" to enhance production efficiency and market share, achieving significant results in cost control and operational efficiency [11][21] - The company is committed to maintaining strict cost management, including labor costs, to enhance competitiveness in the current challenging market environment [19] Future Outlook - Despite current pressures, China Shenhua is confident in its integrated industrial chain advantages and aims to achieve its annual targets while contributing to the healthy development of the Chinese capital market [24] Additional Important Information - The half-year report is scheduled for release at the end of August, which will include detailed production, sales, and financial information [23]

Supply: Marginal Increment Significantly Reduced - Domestic coal production from January to May increased by approximately 130 million tons year-on-year, while imports decreased by about 16 million tons, indicating an overall increase in supply [3][7] - The domestic raw coal production reached 1.99 billion tons from January to May, reflecting a year-on-year increase of 6%. However, the growth rate is expected to narrow in the second half of the year, with an estimated total production of around 4.85 billion tons for 2025, representing a year-on-year increase of 9 million tons (2%) [3][9] - The decrease in imports is attributed to weak demand, high inventory levels, and diminishing price advantages of imported coal. For the first five months of 2025, coal imports totaled 19 million tons, a year-on-year decrease of approximately 16 million tons (8%) [3][64] Demand: Short-term Improvement Expected, Medium-term Resilience Visible - National commodity coal consumption from January to May reached 2.05 billion tons, showing a slight year-on-year increase of 0.1 billion tons (0.5%). The demand is expected to improve in the second half of the year as the consumption peak season approaches [3][4] - In the thermal power sector, the demand is under pressure due to slowing electricity growth and competition from renewable energy. However, the demand for thermal power is expected to rebound in the second half of the year [3][4] - Non-electric demand, particularly from the chemical sector, remains strong, with significant year-on-year growth in coal-to-PVC, coal-to-ethylene glycol, and coal-to-methanol production [3][4] Inventory: High Port Inventory Declining, De-stocking Remains Focus - Port inventories are currently at high levels but are expected to decline as demand improves in the peak consumption season. The focus will remain on de-stocking [4] Price: Thermal Coal Prices at Bottom, Coking Coal Prices Showing Stages of Rebound - The average market price of Qinhuangdao Q5500 thermal coal fell by approximately 199 yuan/ton in the first half of 2025, a year-on-year decrease of 23%. However, there is potential for price rebound as supply-demand dynamics improve [3][57] Investment Recommendations: High Dividend Value Still Exists, Stage Game Elasticity - The report suggests that despite the downward pressure on coal prices, there is still potential for a rebound in the second half of the year. The resilience of coal demand is viewed positively in the medium term [3][4] - Key investment targets include stable-performing coal companies such as China Shenhua, China Coal Energy, and Shaanxi Coal and Chemical Industry, as well as elastic stocks like Electric Power Investment and Jinko Coal Industry [3][4]

Group 1 - The overall shareholding ratio of southbound funds in Hong Kong Stock Connect stocks is 17.95%, with 214 stocks having a shareholding ratio exceeding 20% [1] - As of July 14, southbound funds held a total of 4,488.75 million shares, accounting for 17.95% of the total share capital of the stocks, with a market value of 52,366.47 billion HKD, representing 13.61% of the total market value [1] - The highest shareholding ratio by southbound funds is in China Telecom, with 1,031.38 million shares held, accounting for 74.31% of the issued shares [1] Group 2 - Southbound funds with a shareholding ratio exceeding 20% are mainly concentrated in the healthcare, industrial, and financial sectors, with 42, 33, and 31 stocks respectively [2] - The top stocks with high southbound fund holdings include China Telecom, Green Power Environmental, and China Shenhua, with shareholding ratios of 74.31%, 69.72%, and 67.33% respectively [2][3] - A significant portion of the stocks with high southbound fund holdings are AH concept stocks, with 120 out of 214 stocks (56.07%) having a shareholding ratio over 20% being AH stocks [1]

Group 1 - The China Coal Transportation and Marketing Association held a meeting emphasizing the need to maintain safety and stability, improve coal supply quality, and promote market balance amid changing external conditions [1] - The meeting highlighted the severe imbalance in coal supply and demand, urging coal enterprises to adhere to long-term contracts and enhance management practices to ensure contract fulfillment [1] - With the arrival of high temperatures, coastal power plants are experiencing increased daily coal consumption and declining inventory, leading to a forecast of rising coal prices due to imminent replenishment needs [1] Group 2 - Guotai Junan Securities reported that the rapid growth of renewable energy installations and generation is increasingly squeezing coal power, raising concerns about potential negative growth for coal power in the future [2] - The firm predicts that starting in 2025, with new policies for renewable energy and considering the current pressure on the grid, the marginal impact on coal power will weaken, with a potential demand turning point for coal expected around 2027 [2] Group 3 - Related Hong Kong-listed companies in the coal industry include China Coal Energy (01898), Yancoal Australia (03668), Yanzhou Coal Mining Company (01171), China Shenhua Energy (01088), and China Qinfa (00866) [3]

Core Viewpoint - China Shenhua, the largest coal production and sales enterprise in China, is expected to see a decline in net profit for the first half of 2025, primarily due to falling coal sales volume and prices, despite a generally stable operational performance [1][2]. Group 1: Financial Performance - For the first half of 2025, China Shenhua anticipates a net profit attributable to shareholders between 23.6 billion to 25.6 billion yuan, representing a year-on-year decline of 13.2% to 20.0% [1][2]. - The company's revenue for 2024 is projected at 338.375 billion yuan, with a slight year-on-year decrease of 1.4%, while net profit is expected to be 58.671 billion yuan, down 1.71% [2]. - The coal sales volume in June was 37.5 million tons, a year-on-year decrease of 4.3%, but the decline was significantly smaller compared to the overall first half of the year [1][5]. Group 2: Operational Strategy - China Shenhua has increased the proportion of long-term coal sales contracts to over 90%, which helps to mitigate the impact of market price fluctuations [4]. - The company is actively pursuing the integration of coal and power operations, with the acquisition of Hanjin Energy adding 10 million tons of new coal mines and 1,570 tons of operational coal mines [4]. - The company is focusing on high-quality development, emphasizing sales promotion, power generation, management efficiency, and operational effectiveness [2]. Group 3: Industry Context - The coal industry is experiencing a cyclical downturn, with prices declining over the past two years, leading to operational pressures for companies [2]. - Recent operational data indicates that the decline in coal sales volume has narrowed, with a significant increase in national electricity demand due to the summer peak [5]. - Analysts suggest that the combination of reduced hydropower output and a slowdown in wind and solar generation may create opportunities for thermal power generation, potentially supporting a rebound in coal prices [5]. Group 4: Technological Advancements - China Shenhua is advancing its coal mine automation initiatives, aiming for full automation by 2025, with several intelligent coal mines already established [6][7]. - The company has completed three national-level intelligent demonstration coal mines and plans to build an additional seven advanced intelligent coal mines by 2025 [7]. - In the power generation sector, the capital expenditure plan for 2025 is approximately 17.4 billion yuan, with multiple coal-fired power projects under construction [7].

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 近日，中国神华能源股份有限公司（"本公司"）印尼南苏 1 号独立发电项 目 1 号机组顺利通过 96 小时试运行，移交商业运营。 印尼南苏 1 号独立发电项目是本公司深入践行国家"一带一路"倡议的重要 行动。该项目位于印度尼西亚南苏门答腊省，规划建设 2 台 350MW 超临界燃煤 发电机组，同步建设 80km 双回路 275kV 送出线路。该项目由本公司持股 75% 的控股子公司神华国华（印尼）天健美朗发电有限公司负责运营，采用 BOO（建 设-拥有-经营）模式，与印尼国家电力公司签订的购售电合同期限为 30 年。 印尼南苏 1 号独立发电项目 1 号机组试运期间，机组运行平稳，环保指标优 秀，烟尘、二氧化硫、氮氧化物排放浓度大幅优于购售电合同约定标准。2 号机 组目前已完成基本建设，处于整套启动试运阶段。 证券代码：601088 证券简称：中国神华 公告编号：临 2025-037 中国神华能源股份有限公司 关于印尼南苏 1 号独立发电项目 1 号机组 通过 96 小时试运行的 ...

中国神华（601088）公告，近日，公司印尼南苏1号独立发电项目1号机组顺利通过96小时试运行，移交 商业运营。该项目位于印度尼西亚南苏门答腊省，由神华国华(印尼)天健美朗发电有限公司负责运营， 采用BOO模式，与印尼国家电力公司签订的购售电合同期限为30年。1号机组试运期间运行平稳，环保 指标优秀，烟尘、二氧化硫、氮氧化物排放浓度大幅优于购售电合同约定标准。2号机组目前已完成基 本建设，处于整套启动试运阶段。 ...

智通财经APP获悉，港股今日小幅低开，随后震荡走高，午后涨幅有所扩大，恒科指尾盘一度涨近 1%。截止收盘，恒生指数涨0.26%或63.75点，报24203.32点，全日成交额为2103.63亿港元；恒生国企 指数涨0.52%，报8732.74点；恒生科技指数涨0.67%，报5283.5点。 华泰证券认为，近关税扰动脱敏，政策预期升温，南向资金净流入显著增加，外资同步回流。展望看， 港股流动性宽裕的中期逻辑未发生显著变化，但短期伴随热点板块出现调整，资金再配置已悄然进行， 指数层面波动率或将进一步放大。建议近期以中报为线索，关注景气度兑现程度更高的方向。 蓝筹股表现 中国神华(01088)领涨蓝筹。截至收盘，涨5.16%，报32.6港元，成交额16.04亿港元，贡献恒指8.1点。中 国神华预计上半年除税后净溢利同比跌约16至22%，即达256亿至276亿元，意味着第二季除税后净溢利 将为122亿至142亿元。瑞银认为，中国神华上半年盈测胜于该行及市场预期。该行相信，在煤价压力下 及业绩表现超出预期后，预计投资者对神华会有正面反应。 其他蓝筹股方面，翰森制药(03692)涨3.49%，报32.6港元，贡献恒指2. ...

港股收盘，恒指收涨0.26%，科指收涨0.67%；欧科云链(01499.HK)涨超46%，蔚来汽车(09866.HK)涨超 10.5%，中国神华(01088.HK)涨超5.5%；海底捞(06862.HK)跌超3.6%，百度(09888.HK)跌超2.7%。 ...

中国神华的主营业务是煤炭、电力的生产和销售，铁路、港口和船舶运输，煤制烯烃等业务。公告显 示，预计公司2025年上半年实现归母净利润为236亿元至256亿元。与上年同期法定披露数据相比，减少 39亿元至59亿元，下降13.2%至20.0%。与经重述的上年同期数据相比，减少24亿元至44亿元，下降 8.6%至15.7%。 中国神华表示，2025年上半年，面对煤炭、电力市场量价双降的严峻形势，公司以高质量发展为导向， 全力以赴促销售、争发电、精管理、强创效，生产经营态势总体平稳。2025年上半年归母净利润同比下 降的主要原因是受煤炭销售量及平均销售价格下降影响，集团煤炭分部利润下降。 此外，2月11日，中国神华完成收购国家能源集团公司持有的杭锦能源100%股权。在今年5月的一场投 资者关系活动中，中国神华表示，国家能源集团和公司正在协商启动新一批的注资交易，继续推进煤炭 优质资产注入中国神华，支持中国神华长远发展。 每经记者｜王佳飞 每经编辑｜魏官红 7月13日，中国神华（SH601088，股价37.64元，市值7478.51亿元）发布了2025年上半年业绩预告。中 国神华预计今年上半年业绩同比有所下降，公司同时 ...