pingmei coal(SH:601666)2017-04-24 16:00Financial Performance - The company achieved a total operating revenue of ¥14,712,794,612.78 in 2016, representing an increase of 18.24% compared to ¥12,443,499,377.52 in 2015[19]. - The net profit attributable to shareholders was ¥753,255,001.44, a significant recovery from a loss of ¥2,137,553,004.51 in the previous year, marking a 135.24% increase[19]. - The net cash flow from operating activities reached ¥3,513,194,222.81, a substantial improvement from a negative cash flow of ¥282,242,499.47 in 2015, reflecting a 1,344.74% increase[19]. - The total assets of the company as of the end of 2016 were ¥38,140,406,562.06, up 7.70% from ¥35,412,934,875.63 in 2015[19]. - The net assets attributable to shareholders increased to ¥10,890,102,367.93, a growth of 16.68% compared to ¥9,333,337,175.9 at the end of 2015[19]. - The company reported a net profit excluding non-recurring gains and losses of ¥80,687,421.05, recovering from a loss of ¥2,149,211,567.30 in 2015, which is a 103.75% increase[19]. - Basic earnings per share (EPS) for 2016 was CNY 0.3190, a significant increase of 135.24% compared to the previous year[21]. - The weighted average return on equity (ROE) rose to 7.68%, an increase of 28.21 percentage points from -20.53% in the previous year[21]. - In 2016, the company's total profit reached 772.25 million RMB, a significant increase of 151.25% compared to the previous year, driven by rising coal prices and asset sales[36]. - The total profit for the year was 77,224.50 million yuan, a significant turnaround from a loss of 150,678.43 million yuan in 2015, representing a 151.25% increase[57]. Operational Highlights - The company maintained a strong market position in coal sales, with a focus on both domestic and international markets, including a successful export of 22,000 tons of coking coal to Japan[29]. - The company completed 2.86 million m of gas area governance projects, achieving historical best levels in gas extraction[30]. - The company’s coal production base is one of the largest in Central South China, with a diverse range of coal types including coking coal and thermal coal[26]. - The coal mining segment generated revenue of approximately 12.41 billion RMB, with a gross margin of 23.13%, an increase of 12.86 percentage points year-on-year[41]. - The company’s coal production is expected to remain flexible and responsive to market demand, maintaining a balance between supply and demand[76]. Market and Sales - The average selling price of commercial coal was 409.38 RMB, an increase of 31.03% year-on-year, reflecting improved market conditions[36]. - The company accounted for over 95% of the market share for electricity coal in the surrounding power plants, and approximately 50% in the southwestern region of the province[55]. - The total coal consumption in China for 2016 was 3.727 billion tons, with a year-on-year growth of 0.5%[54]. - The total coal production in China was approximately 3.66 billion tons, marking the first time in recent years that supply was less than consumption due to government policies[54]. Strategic Initiatives - The company’s strategic focus includes expanding its market radius and enhancing cooperation in coal-electricity and coal-steel sectors[29]. - The company plans to produce 33.2 million tons of raw coal and 9 million tons of refined coal in 2017, with projected revenue of 15 billion RMB and costs of 13.6 billion RMB[79]. - The company aims to optimize its product structure and enhance its core competitiveness by increasing the washing and selection of coal products[78]. - The company is committed to closing unprofitable mines and focusing on clean production and reduced coal consumption in line with national policies[78]. Risk Management - The company faces various risks including policy, safety, environmental, market, and mining technology risks, which are detailed in the report[6]. - The company is addressing safety risks associated with deeper mining operations, including increased gas content and geological hazards[80]. Corporate Governance - The company has emphasized compliance with relevant laws and regulations to ensure proper governance and operational integrity[88]. - The company is committed to maintaining its independence and ensuring no direct or indirect competition with its parent group, China Pingmei Shenma Group[88]. - The company has a structured decision-making process for remuneration based on performance assessments conducted by the human resources department[156]. - The company has a diverse board with members having extensive experience in various leadership roles within the coal and energy sectors[152]. Social Responsibility - The company provided a total of 1,308.21 million RMB for poverty alleviation efforts in 2016[126]. - A total of 2,029 impoverished students received financial assistance amounting to 294 million RMB[126]. - The company has established a multi-faceted assistance system for employees in need, focusing on ensuring no employee faces hardship or inability to access education and healthcare[122]. Financial Strategy - The company issued a total of 1 billion RMB in non-public corporate bonds at a rate of 7% to improve its debt structure[136]. - The company reported a capital reserve adjustment of CNY 247,044,854.73 due to an accounting error related to the disposal of shares in three mining companies, which will be corrected in the financial statements[91]. - The company has secured a bank credit line of RMB 18.1 billion, of which RMB 6.4 billion has been utilized, leaving RMB 11.7 billion available[195]. Employee Management - The total number of employees in the parent company is 77,708, and the total number of employees in major subsidiaries is 7,285, resulting in a combined total of 84,993 employees[159]. - The company plans to conduct a total of 74,987 training sessions in 2017, including 54,843 for safety training and 4,588 for skills training[161].