中国神华(01088) - 2023 - 中期业绩

Financial Performance - Revenue for the first half of 2023 was RMB 169.442 billion, an increase of RMB 3.863 billion (2.3%) compared to the same period in 2022[1] - Net profit attributable to the company's owners was RMB 36.861 billion, a decrease of RMB 5.632 billion (13.3%) compared to the same period in 2022[1] - EBITDA for the first half of 2023 was RMB 61.693 billion, a decrease of RMB 3.714 billion (5.7%) compared to the same period in 2022[1] - Basic earnings per share for the first half of 2023 were RMB 1.855[1] - Gross profit for the first half of 2023 was RMB 55.298 billion, compared to RMB 58.902 billion in the same period in 2022[3] - Total comprehensive income for the first half of 2023 was RMB 43.315 billion, compared to RMB 50.251 billion in the same period in 2022[4] - Net profit for the period ending June 30, 2023, was RMB 36,861 million, contributing to a total comprehensive income of RMB 37,362 million[8] - Revenue for the first half of 2023 increased by 2.3% year-on-year to 169,442 million yuan, while pre-tax profit decreased by 6.2% to 52,300 million yuan[46] - Net profit attributable to shareholders decreased by 13.3% to 36,861 million yuan, with basic earnings per share dropping to 1.855 yuan[46] - Revenue from the power generation segment increased by 18.9% to 44,190 million yuan in H1 2023, driven by higher electricity sales volume and average selling prices[87] - Gross margin for the power generation segment rose by 3.4 percentage points to 16.3% in H1 2023, despite increased coal procurement costs[87] - Coal-fired power generation revenue grew by 20.1% to 39,717 million yuan in H1 2023, accounting for 97.0% of total power generation costs[89] - The company's unit power generation cost decreased by 4.2% to 364.4 yuan/MWh in H1 2023, primarily due to lower coal procurement prices[90] - Coal procurement costs for coal-fired power plants increased by 15.9% to 25,867 million yuan in H1 2023, driven by higher coal prices[91] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 425.166 billion for non-current assets and RMB 240.962 billion for current assets[6] - Total liabilities as of June 30, 2023, were RMB 69.466 billion for non-current liabilities and RMB 141.207 billion for current liabilities[7] - Equity attributable to the company's owners as of June 30, 2023, was RMB 383.830 billion[7] - Total equity as of June 30, 2023, was RMB 455,455 million, with non-controlling interests amounting to RMB 71,625 million[8] - The company's retained earnings as of June 30, 2023, stood at RMB 265,417 million[8] - Foreign currency translation reserve increased by RMB 272 million during the period[8] - Non-controlling shareholders' contributions amounted to RMB 369 million during the period[8] - Overseas assets totaled RMB 34,892 million, accounting for 5.2% of total assets, primarily consisting of power generation assets in Indonesia and USD bonds issued in Hong Kong[60] - The fair value of equity instrument investments at the beginning of the period was 2,386 million, with a cumulative fair value change of 113 million, resulting in a closing balance of 2,499 million[110] - The fair value of financial assets measured at fair value through other comprehensive income decreased by 310 million, resulting in a closing balance of 192 million[110] Cash Flow and Capital Expenditures - Operating cash flow before working capital changes was RMB 61,533 million, with net cash inflow from operating activities at RMB 46,349 million[10] - Capital expenditures for property, plant, and equipment, intangible assets, and other non-current assets totaled RMB 15,767 million[11] - Cash received from interest and dividends from associates was RMB 2,109 million and RMB 442 million, respectively[11] - Net cash outflow from investing activities was RMB 18,234 million[11] - Net cash outflow from financing activities was RMB 9,544 million, compared to RMB 3,163 million in the same period last year[12] - Cash and cash equivalents increased by RMB 18,571 million, down from RMB 38,891 million in the previous year[12] - The company repaid RMB 12,724 million in borrowings, compared to RMB 13,074 million in the same period last year[12] - New borrowings received amounted to RMB 6,639 million, a decrease from RMB 10,955 million in the previous year[12] - The company repurchased bonds worth RMB 313 million, a new activity not present in the previous year[12] - Dividends paid to non-controlling interests increased significantly to RMB 2,175 million from RMB 253 million in the previous year[12] - Operating cash flow decreased by 20.6% YoY to RMB 46,349 million in H1 2023, primarily due to lower coal sales revenue and increased production costs[54] - Investment cash outflow increased by 11.8% YoY to RMB 18,234 million in H1 2023, driven by ongoing construction projects and increased payments for property, plant, equipment, and other non-current assets[55] - Total capital expenditure in H1 2023 was 16.813 billion yuan, with 6.464 billion yuan spent on mining rights and 2.855 billion yuan on other coal business expenditures[107][108] - Coal business capital expenditure exceeded the annual plan, reaching 9.319 billion yuan in H1 2023 compared to the planned 7.377 billion yuan[107] - Power generation business capital expenditure was 5.914 billion yuan in H1 2023, significantly below the annual plan of 18.080 billion yuan[107] - Transportation business capital expenditure was 1.538 billion yuan in H1 2023, far below the annual plan of 9.561 billion yuan[107] Coal Business - Coal sales revenue decreased to RMB 110,984 million in 2023 from RMB 113,976 million in 2022, a decline of 2.6%[19] - Coal production remained at a high monthly level, with external coal purchases increasing year-on-year[32] - Railway coal transportation volume accounted for 26% of national railway coal shipments, and the company's port outbound volume accounted for 36% of coal sales in northern ports[32] - 19 coal mines and fully mechanized mining faces passed provincial-level intelligent coal mine construction acceptance[33] - The national coal price index NCEI (5,500 kcal) for long-term contracts was 701 yuan/ton as of June 30, 2023, a decrease of 27 yuan/ton from the end of the previous year[36] - The average price of long-term contracts in the first half of the year was approximately 722 yuan/ton, basically flat with the same period last year[36] - National industrial raw coal production reached 2.3 billion tons, a year-on-year increase of 4.4%[38] - Coal imports reached 220 million tons, a year-on-year increase of 93.0%[38] - National railway coal transportation volume reached 1.38 billion tons, a year-on-year increase of 3.2%[38] - Global seaborne coal trade volume reached 640 million tons, a year-on-year increase of 11.9%[39] - Coal sales volume reached 217.9 million tons, a 3.7% increase year-on-year, with external coal purchases rising by 17.0% to 58.6 million tons[50] - The average sales price of coal in the first half of 2023 was 601 yuan/ton (excluding tax), a year-on-year decrease of 5.1%[64] - Self-produced coal sales accounted for 73.1% of total sales volume in the first half of 2023, with a sales price of 560 yuan/ton (excluding tax), a year-on-year decrease of 5.2%[65] - Annual long-term contract sales volume in the first half of 2023 was 124.3 million tons, accounting for 57.0% of total sales volume, with a sales price of 500 yuan/ton (excluding tax), a year-on-year decrease of 2.5%[66] - Domestic sales accounted for 98.3% of total sales volume in the first half of 2023, with a sales price of 597 yuan/ton (excluding tax), a year-on-year decrease of 5.1%[68] - The company's coal reserves under Chinese standards as of June 30, 2023, were 32.74 billion tons, a decrease of 160 million tons compared to the end of 2022[69] - The company's coal exploration expenditure in the first half of 2023 was 80 million yuan, while coal mine development and mining-related capital expenditure was 7.58 billion yuan, a significant increase from 970 million yuan in the same period of 2022[69] - Total coal reserves under Chinese standards are 327.4 million tons, with 135.3 million tons of recoverable reserves and 96.4 million tons of salable reserves under JORC standards[70] - In H1 2023, the company's coal segment revenue decreased by 0.7% YoY to 135.244 billion RMB, with a 2.8% increase in operating costs, leading to a 2.5 percentage point decline in gross margin to 28.0%[73] - Domestic coal sales accounted for 35.8% of gross margin in H1 2023, down from 38.5% in H1 2022, while export and overseas sales saw a significant drop in gross margin from 13.2% to 1.3%[74] - Self-produced coal gross margin decreased to 50.5% in H1 2023 from 52.1% in H1 2022, while purchased coal gross margin dropped to 1.9% from 3.5%[75] - Self-produced coal unit production cost increased by 5.9% YoY to 166.7 RMB/ton in H1 2023, driven by a 15.3% increase in labor costs and a 9.9% rise in raw material costs[76] Power Generation Business - Power generation sales revenue increased to RMB 40,770 million in 2023 from RMB 34,133 million in 2022, a growth of 19.4%[19] - Total power generation increased by 18.2% to 100.2 billion kWh, while total power sales grew by 18.4% to 94.26 billion kWh[50] - The company's coal-fired power plants achieved a standard coal consumption rate of 294 g/kWh in H1 2023, a 3 g/kWh reduction compared to H1 2022[78] - As of H1 2023, the company has 50 operational new energy power projects with a total installed capacity of 177.7 MW, including 114 MW of photovoltaic capacity[78] - Total electricity generation in the first half of 2023 was 100.20 billion kWh, an increase of 18.2% compared to 84.79 billion kWh in the same period last year[79] - Coal-fired power generation accounted for 98.25 billion kWh, up 19.0% year-on-year, with significant growth in Fujian (34.0%) and Guangxi (333.1%)[79] - The company's total installed capacity reached 40,353 MW, with coal-fired power accounting for 97.1% (39,164 MW) and new photovoltaic capacity additions of 52 MW in Guangdong, Hebei, and Fujian[80][81] - Coal-fired power units achieved an average utilization of 2,509 hours in H1 2023, an increase of 13.0% compared to 2,220 hours in the same period last year[82][83] - Photovoltaic power generation saw a 400.0% increase in electricity generation, reaching 0.05 billion kWh in H1 2023[79] - The company's Shandong power sales subsidiary sold 3.28 billion kWh of electricity in H1 2023, generating revenue of 1,088 million yuan[84][85] - Capital expenditures for the power generation segment totaled 5,914 million yuan in H1 2023, with major investments in Guangdong Qingyuan Power Plant (824 million yuan) and Hunan Yueyang Power Plant (628 million yuan)[86] - The average electricity sales price increased by 1.5% to 418 yuan/MWh in H1 2023, compared to 412 yuan/MWh in the same period last year[79] - Gas-fired power generation decreased by 15.2% to 1.62 billion kWh, with an average utilization of 1,700 hours, down 15.5% year-on-year[79][83] - Hydropower generation remained stable at 0.28 billion kWh, with an average utilization of 2,257 hours, slightly down 0.5% compared to H1 2022[79][83] Transportation and Logistics - Railway transportation turnover increased by 3.6% to 150.4 billion ton-kilometers in H1 2023, with non-coal cargo volume growing by 3.0% to 10.304 million tons[93] - Railway segment revenue grew by 5.3% to 22,123 million yuan in H1 2023, but unit transportation costs rose by 20.3% to 0.083 yuan/ton-kilometer due to higher maintenance and labor costs[94] - Huanghua Port's coal loading volume decreased by 2.5% to 100.6 million tons in H1 2023, while Tianjin Coal Terminal's volume increased by 11.3% to 22.6 million tons[95] - Non-coal cargo volume at the port segment surged by 124.0% to 6.079 million tons in H1 2023, driven by new general cargo berths and expanded cargo types[96] - Shipping division achieved a cargo volume of 72.2 million tons in H1 2023, a 9.7% YoY increase, and a shipping turnover of 78.8 billion ton-miles, a 22.4% YoY increase[98] - Shipping division's revenue decreased by 14.9% YoY to 2,579 million yuan in H1 2023, with a gross margin drop of 8.4 percentage points to 9.0%[99] - Unit transportation cost for the shipping division decreased by 23.1% YoY to 0.030 yuan/ton-mile in H1 2023[99] Coal Chemical Business - Coal chemical product sales revenue decreased to RMB 2,727 million in 2023 from RMB 3,148 million in 2022, a decline of 13.4%[19] - Coal chemical division's polyolefin product sales volume decreased by 1.9% YoY to 351.4 thousand tons in H1 2023[100] - Coal chemical division's revenue decreased by 12.4% YoY to 3,002 million yuan in H1 2023, with a gross margin drop of 13.3 percentage points to 4.8%[102] Overseas Operations - Overseas market revenue increased to RMB 6,528 million in 2023 from RMB 4,523 million in 2022, a growth of 44.3%[19] - Overseas market revenue increased by 44.3% YoY to 6,528 million yuan in H1 2023, driven by a 111.1% YoY increase in overseas coal sales volume to 3.8 million tons[104][105] - The company faces foreign exchange risk with foreign currency funds and receivables totaling RMB 3,708 million, and payables and long-term loans totaling RMB 1,433 million[115] - The company is strengthening its international operations by enhancing pre-investment analysis, risk monitoring, and talent development to ensure project feasibility and risk mitigation[115] Corporate Governance and Compliance - The company has not engaged in any share buybacks, sales, or redemptions during the first half of 2023[117] - The company has established a corporate governance system in compliance with Hong Kong Listing Rules, with changes in the board secretary position[118] - The company's directors and supervisors have confirmed full compliance with the Model Code for Securities Transactions during the first half of 2023[119] - The Audit and Risk Committee has reviewed and approved the interim financial report for the first half of 2023, recommending it for board approval[121] - The company's board members as of the announcement date include executive directors Lü Zhiren and Xu Mingjun, non-executive directors Jia Jinzhong and Yang Rongming, independent non-executive directors Dr. Yuan Guoqiang, Dr. Bai Chongen, and Dr. Chen Hanwen, and employee director Liu Xiaolei[124] Strategic Initiatives and Future Plans - The company is focusing on technological innovation, clean coal utilization, and the development of high-end, diversified, and low-carbon coal chemical products to drive sustainable growth[115] - The company is enhancing its integrated operations by improving resource coordination, transportation systems, and supply chain resilience[115] - The company is accelerating the development of renewable energy and promoting green and low-carbon transformation while ensuring a reliable replacement for traditional energy[116] - 13 new energy projects were approved, and the company actively participated in pumped storage projects and conducted strategic research on hydrogen energy layout[33] - The company plans to put into operation 6 clean and efficient coal-fired power units with a total capacity of 4.7 million kilowatts[34] Subsidiary Performance - Shenhua Shendong Coal's net profit attributable to parent company shareholders decreased by 48.0% to 9,292 million in the first half of 2023, primarily due to a decline in coal sales prices and increased production costs[111] - Shuohuang Railway's net profit attributable to parent company shareholders decreased by 9.0% to 3,380 million in the first half of 2023, mainly due to increased repair costs[111] - Jinjie Energy's net profit attributable to