Economic Overview - In the first half of 2025, China's GDP reached RMB 66 trillion, reflecting a year-on-year increase of 5.3%[13]. - Real disposable incomes increased by 5.4% nationwide, with rural incomes growing faster than urban incomes[13]. Coal Market Conditions - By the end of May 2025, spot coking coal prices were approximately RMB 765 per tonne, marking the lowest levels since 2016[14]. - The national coal sector is experiencing oversupply, with domestic output and rising metallurgical coal imports contributing to price declines[14]. - Coal prices in Guizhou Province have been under significant pressure due to weak demand from downstream industries, particularly in steel production[15]. - Provincial coal prices rebounded to above-market levels by mid-June 2025, although the recovery in Liupanshui has been slower compared to other regions[16]. - Regulatory measures to stabilize the coal market may take time to implement effectively[14]. Company Operations - Perennial Energy Holdings operates three underground coal mines in Panzhou City, Guizhou Province[19]. - The company continues to face narrowing profit margins due to ongoing market adjustments and pricing pressures[14][16]. - The company is monitoring the impact of macroeconomic conditions on its operations and market strategies[13]. - As of June 30, 2025, the total permitted annual production capacity of the Group's coal mines is 2,850,000 tonnes, with Hongguo and Baogushan Coal Mines each having a capacity of 1,200,000 tonnes and Xiejiahegou Coal Mine having a capacity of 450,000 tonnes[26]. - The Group's total raw coal production for the six months ended June 30, 2025, was 935,049 tonnes, representing an increase year-over-year, with Hongguo Coal Mine producing 348,315 tonnes, Baogushan Coal Mine producing 329,788 tonnes, and Xiejiahegou Coal Mine producing 256,946 tonnes[31]. Production and Utilization - The production volumes of Hongguo Coal Mine and Xiejiahegou Coal Mine increased by approximately 38.1% and 45.5% year-over-year, while Baogushan Coal Mine's production decreased by approximately 5.0%[31]. - The overall utilisation rate for the Group's coal mines was 32.8% for the six months ended June 30, 2025, a slight decline from 34.5% in the same period of 2024[29]. - The utilisation rate of Hongguo Coal Mine was approximately 29.0%, down by approximately 13.0 percentage points year-over-year, while Baogushan Coal Mine recorded a utilisation rate of 27.5%, a decrease of approximately 1.4 percentage points[32]. - Xiejiahegou Coal Mine's utilisation rate increased by approximately 17.9 percentage points year-over-year to 57.1%[32]. - The Group operates two coal preparation plants with capacities of 2.4 million tonnes per annum for Songshan CPP and 1.8 million tonnes per annum for Xiejiahegou CPP[33]. Financial Performance - The Group's total revenue for the six months ended June 30, 2025, was approximately RMB 591.5 million, a decrease of approximately 31.9% compared to RMB 868.2 million for the same period in 2024[41][42]. - Sales volume of clean coal increased by approximately 8.1% YoY to 429,979 tonnes, while the average selling price decreased by approximately 39.6% YoY to RMB 1,202 per tonne[39][40]. - The sales revenue of clean coal decreased by approximately 34.7% to approximately RMB 516.9 million, while middling coal sales revenue decreased by approximately 15.0% to RMB 53.7 million[45][48]. - The average selling price of middling coal decreased by approximately 6.1% YoY to approximately RMB 370 per tonne[40]. - The sales volume of sludge coal increased significantly by approximately 83.5% YoY to 177,173 tonnes, with sales revenue rising by approximately 71.6% to RMB 20.2 million[39][45]. Profitability and Expenses - The Group's gross profit decreased by approximately 65.1% YoY to approximately RMB 167.8 million, with a gross profit margin of approximately 28.4%, down from 55.4% in the previous year[46][49]. - Other income decreased by approximately 57.7% to approximately RMB 4.6 million, primarily due to reduced government grants and subsidies[47][50]. - The sales volume of coalbed methane gas was approximately 4,249 thousand cubic meters, a significant decrease from approximately 11,880 thousand cubic meters in the previous year[39][40]. - The Group's average selling price of sludge coal decreased to approximately RMB 114 per tonne, down from RMB 122 per tonne in the previous year[38][40]. - The Group's other losses decreased by approximately 71.8% to approximately RMB 0.6 million, primarily due to translation differences from currency conversion[51]. Administrative and Other Expenses - Distribution and selling expenses decreased by approximately 14.7% YoY to approximately RMB39.5 million, down from RMB46.3 million[53]. - Administrative expenses increased by approximately 8.0% YoY to approximately RMB77.3 million, up from RMB71.6 million[54]. - Other expenses dropped to approximately RMB16.5 million from RMB33.5 million, primarily due to reduced R&D expenses[55]. - Staff costs for the period totaled approximately RMB40.9 million, a decrease from approximately RMB47.1 million for the six months ended June 30, 2024[92]. Cash Flow and Financial Position - As of June 30, 2025, bank balances and cash amounted to approximately RMB146.9 million, down from RMB177.1 million[70]. - Secured bank borrowings increased to approximately RMB794.6 million from RMB711.3 million[72]. - The Group's gearing ratio improved to approximately 0.36 from 0.38[76]. - The top three trade debtors accounted for approximately 60% of the Group's total trade receivables as of June 30, 2025, down from 82% as of December 31, 2024, indicating a significant mitigation of credit concentration risk[79]. - The Group recorded net current liabilities of approximately RMB440.4 million as of June 30, 2025, but the Directors believe there will be sufficient working capital to meet operational needs for the next twelve months[84]. Shareholder Information - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[98]. - The company confirmed that all directors complied with the Model Code for Securities Transactions during the six months ended June 30, 2025[107]. - The total number of shares issued by the Company as of June 30, 2025, is 1,600,000,000[121]. - The Share Option Scheme allows for a maximum of 30% of the shares in issue to be issued upon exercise of all outstanding options[124]. - No share options were granted, exercised, cancelled, or lapsed during the six months ended June 30, 2025[131]. Recent Developments - The company did not hold any treasury shares as of June 30, 2025[111]. - No significant changes in the company's development and financial condition were reported for the year ending December 31, 2024, aside from those disclosed in the interim report[105]. - There were no material acquisitions or disposals during the period under review[94]. - No significant events requiring disclosure occurred after June 30, 2025, up to the date of the interim report[104].
久泰邦达能源(02798) - 2025 - 中期财报