晋控煤业(601001) - 2019 Q2 - 季度财报

Glossary This section provides definitions for key terms used throughout the report Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance Company Information Datong Coal Industry Co Ltd, listed on the Shanghai Stock Exchange under stock code 601001, primarily engages in coal mining, processing, and sales - Company basic information includes its name, abbreviation, stock code, and legal representative[8][13] Key Accounting Data and Financial Indicators In the first half of 2019, the company achieved operating revenue of 5.70 billion Yuan, a 7.38% increase, but net profit attributable to shareholders decreased by 4.23% to 455 million Yuan 2019 First Half Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,700,430,253.64 Yuan | 5,308,761,591.75 Yuan | 7.38% | | Net Profit Attributable to Shareholders of the Listed Company | 454,938,324.39 Yuan | 475,041,653.09 Yuan | -4.23% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 453,394,380.90 Yuan | 478,787,117.90 Yuan | -5.30% | | Net Cash Flow from Operating Activities | 1,606,115,218.78 Yuan | 1,693,532,731.65 Yuan | -5.16% | | | As of End of Current Period | As of End of Prior Year | Change from End of Prior Year (%) | | Net Assets Attributable to Shareholders of the Listed Company | 6,164,636,716.80 Yuan | 5,510,701,504.97 Yuan | 11.87% | | Total Assets | 26,612,420,557.09 Yuan | 25,367,176,331.03 Yuan | 4.91% | 2019 First Half Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.27 | 0.28 | -3.57% | | Diluted Earnings Per Share (Yuan/share) | 0.27 | 0.28 | -3.57% | | Weighted Average Return on Net Assets (%) | 7.93% | 8.16% | Decreased by 0.23 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains and Losses) (%) | 7.90% | 8.22% | Decreased by 0.32 percentage points | - During the reporting period, the company's non-recurring gains and losses totaled 1.5439 million Yuan, primarily including gains/losses from disposal of non-current assets, government subsidies, and entrusted operation income[16][17] Company Business Overview This section outlines the company's primary business activities, operating model, and industry conditions Main Business, Operating Model, and Industry Situation The company's main business involves coal production, washing, processing, and sales, with thermal coal as its primary product, supplemented by activated carbon and kaolin - The company's core business integrates coal production, washing, processing, and sales, with thermal coal as its main product and a stable customer base[18] - In the first half of 2019, national raw coal output increased by 2.6% year-on-year, thermal power generation increased by 0.2% year-on-year, and the coal market supply and demand remained generally stable with fluctuating prices[18] Core Competitiveness Analysis The company's core competitiveness remained unchanged during the reporting period, as detailed in its 2018 annual report - The company's core competitiveness remained unchanged during the reporting period[19] Discussion and Analysis of Operations This section provides an in-depth discussion and analysis of the company's operational performance and financial position Discussion and Analysis of Operations In the first half of 2019, the company achieved steady progress in production safety, operations, coal sales, management control, and technological innovation - The company continuously advanced work in five key areas: safety, production, sales, operational control, and technological innovation, ensuring stable operations and high-quality development[20] 2019 Jan-Jun Main Product Production and Sales | Product | Output (million tons) | Sales (million tons) | Average Selling Price (Yuan/ton) | Sales Revenue (million Yuan) | Sales Cost (million Yuan) | Gross Profit (million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 1.6292 | 1.3496 | 396.67 | 5353.4456 | 2297.4665 | 3055.9791 | | Activated Carbon | 24,258 tons | 20,827 tons | 6349.81 | 132.2484 | 127.3121 | 4.9363 | | Kaolin | 0.0028 | 0.0122 | 1564.67 | 19.0890 | 23.7453 | -4.6563 | Financial Statement Key Item Changes Analysis | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,700,430,253.64 | 5,308,761,591.75 | 7.38% | | Operating Cost | 2,576,226,162.92 | 2,213,672,234.13 | 16.38% | | Selling Expenses | 1,152,961,745.23 | 1,073,984,358.91 | 7.35% | | Financial Expenses | 246,019,832.25 | 293,735,301.62 | -16.24% | | Net Cash Flow from Operating Activities | 1,606,115,218.78 | 1,693,532,731.65 | -5.16% | Operating Indicators by Mine | Mine Name | Raw Coal Output (million tons) | Commercial Coal Sales (million tons) | Sales Revenue (million Yuan) | Coal Selling Price (Yuan) | Sales Cost (million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xinzhouyao Mine | 0.0339 | 0.0312 | 82.1478 | 263.22 | 24.3710 | | Tashan Coal Mine | 1.4070 | 1.1486 | 5111.4263 | 445.01 | 1865.5783 | | Selian Coal Mine | 0.1883 | 0.1701 | 126.1702 | 74.17 | 196.0537 | Analysis of Assets and Liabilities As of the end of the reporting period, total assets reached 26.612 billion Yuan, a 4.91% increase from the end of the previous year, with significant changes in notes receivable and short-term borrowings Balance Sheet Key Item Changes | Item Name | Current Period End Amount (Yuan) | Prior Period End Amount (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 139,763,812.40 | 41,813,392.81 | 234.26% | Increase in bank acceptance bills in current period | | Inventories | 419,791,969.92 | 321,640,449.81 | 30.52% | Increased coal inventory due to higher output at subsidiary Tashan Mine | | Short-term Borrowings | 3,175,000,000.00 | 960,000,000.00 | 230.73% | Increase in short-term credit borrowings in current period | | Notes Payable | 420,000,000.00 | 20,000,000.00 | 2,000.00% | Increase in letter of credit payments in current period compared to prior period | | Advances from Customers | 242,523,799.91 | 104,640,760.51 | 131.77% | Company increased sales through advance receipts | | Taxes Payable | 277,980,169.92 | 1,034,780,855.85 | -73.14% | Subsidiary Tashan Mine paid more income tax expenses | | Non-current Liabilities Due Within One Year | 2,766,459,100.60 | 4,415,709,804.13 | -37.35% | Repayment of matured super short-term commercial paper | Analysis of Major Controlled and Associate Companies The company's main profit source is its controlled subsidiary, Tongmei Datang Tashan Coal Mine Co Ltd, which reported a net profit of 1.261 billion Yuan Financial Summary of Major Controlled and Associate Companies | Company Name | Shareholding Ratio | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Tongmei Datang Tashan Coal Mine Co Ltd | 72% | 5,156,921,292.07 | 1,260,688,906.72 | | Inner Mongolia Tongmei Ordos Mining Investment Co Ltd | 51% | 126,172,175.77 | -186,123,619.57 | | Datong Coal Mine Group Finance Co Ltd | 20% | 488,255,170.57 | 180,945,180.40 | Potential Risks The company has identified five major risks: production safety, market competition, rising costs, transformation and upgrading pressure, and industrial policy and environmental risks - The company faces major risks including: - Production Safety Risks: Inherent natural disaster risks in coal mining such as roof falls, gas explosions, and fires - Market Competition Risks: Price volatility pressure due to macroeconomic and policy changes - Cost Increase Risks: Rising costs from increased mining depth, production factors, and environmental protection investments - Transformation and Upgrading Pressure: Significant tasks for traditional industry upgrading and enterprise transformation - Industrial Policy and Environmental Risks: Operational risks arising from changes in relevant policies[31] Significant Matters This section details important events and transactions that occurred during the reporting period Shareholders' Meeting Information The company held its 2018 Annual Shareholders' Meeting on May 17, 2019, approving various proposals including the annual board report, financial statements, and profit distribution plan - The 2018 Annual Shareholders' Meeting approved the company's 2018 Board of Directors' Work Report, financial statements, profit distribution plan, re-appointment of auditors, and routine related party transactions, among other proposals[32] Fulfillment of Commitments The controlling shareholder, Tongmei Group, continues to fulfill its commitment to resolve horizontal competition, ensuring its retained coal businesses do not substantially compete with the listed company - The controlling shareholder, Tongmei Group, committed that coal assets under its control not yet meeting injection conditions will be gradually injected into Datong Coal Industry Co Ltd within five years from the date conditions are met (e.g., clear ownership, compliant procedures, ROI not lower than similar assets of the listed company), and Datong Coal Industry Co Ltd will be granted priority purchase rights[36] Significant Related Party Transactions During the reporting period, the company engaged in several significant related party transactions, including operational agreements and financial services - The company estimated its routine related party transactions for 2019, which were approved by the shareholders' meeting[42] - Controlled subsidiary Tashan Company contracted the daily operation and maintenance of Baitong Mine to its parent company, Tongmei Group, for a period not exceeding 3 years, with the 2019 contract specifying total rental and operation service fees of 324 million Yuan (excluding tax)[44] - The company signed a 3-year "Financial Services Agreement" with related party Datong Coal Mine Group Finance Co Ltd, which provides financial services such as deposits, comprehensive credit lines, and bill discounting to the company[44] Significant Contracts and Their Performance During the reporting period, the company had important contracting and guarantee contracts, including entrusted operations and external guarantees - Selian Coal Mine entrusted the overall operation and management of "Selian No 1 Mine" and its coal washing plant to Huiyong Holdings Group and Beijing Huayu Zhongxuan Clean Coal Engineering Technology Co Ltd[46] External Guarantee Summary (As of End of Reporting Period) | Item | Amount | | :--- | :--- | | Total Guarantees (A+B) | 1,320,123,698 Yuan | | Percentage of Total Guarantees to Company's Net Assets (%) | 23.96% | | Amount of Guarantees Provided for Shareholders, Actual Controllers, and Their Related Parties (C) | 1,000,000,000 Yuan | | Amount of Debt Guarantees Provided for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 320,123,698 Yuan | Environmental Information The company and its key subsidiaries disclosed environmental information as required, detailing pollution discharge, prevention facilities, and environmental assessments - Key polluting units, Xinzhouyao Mine and Tashan Coal Mine Baitong Mine, provided detailed disclosures on major pollution discharge information (air, wastewater, solid waste), operation of pollution prevention facilities, environmental impact assessments, and emergency plans[54][57][58] - During the reporting period, Xinzhouyao Mine was fined 300,000 Yuan by Datong Environmental Protection Bureau for failing to meet online monitoring standards during boiler trial operation[57] - Activated Carbon Company received administrative penalties totaling 200,000 Yuan from Datong Ecological Environment Bureau and Yungang Branch[60] Changes in Ordinary Shares and Shareholder Information This section details any changes in the company's ordinary share capital and provides an overview of its shareholder structure Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[64] Shareholder Information As of the end of the reporting period, the company had 87,548 ordinary shareholders, with Datong Coal Mine Group Co Ltd as the controlling shareholder - As of the end of the reporting period, the company had 87,548 ordinary shareholders[65] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Datong Coal Mine Group Co Ltd | 961,632,508 | 57.46% | State-owned Legal Person | | Central Huijin Asset Management Co Ltd | 31,924,200 | 1.91% | State-owned Legal Person | | Hebei Port Group Co Ltd | 26,592,080 | 1.59% | State-owned Legal Person | | Agricultural Bank of China - CSI 500 ETF | 10,088,787 | 0.60% | Other | | Hong Kong Securities Clearing Company Limited | 7,379,913 | 0.44% | Other | Preferred Shares Information This section confirms that the company has no preferred shares during the reporting period Not Applicable During the reporting period, the company had no preferred shares - The company has no preferred shares information[67] Information on Directors, Supervisors, and Senior Management This section details changes in the company's board of directors, supervisors, and senior management personnel Changes in Directors, Supervisors, and Senior Management Personnel During the reporting period, the company's board of directors and senior management underwent several changes, including resignations and new appointments - There were no changes in the shareholdings of current and outgoing directors, supervisors, and senior management during the reporting period[68] Changes in Directors, Supervisors, and Senior Management Personnel | Name | Position Held | Change Type | | :--- | :--- | :--- | | Zhang Youxi | Chairman, Director | Resignation | | Zhang Bin | Deputy General Manager | Resignation | | Wang Qing | Chief Engineer | Resignation | | Liu Jing | Director | Resignation | | Xuan Hongbin | Director | Resignation | | Yu Dahai | Director | Resignation | | Zhu Haiyue | General Manager | Appointment | | Zhu Haiyue | Director | Election | | Ye Ninghua | Director | Election | | Rong Jun | Director | Election | | Ma Zhanyuan | Director | Election | Corporate Bonds Information This section confirms that the company has no corporate bonds during the reporting period Not Applicable During the reporting period, the company had no corporate bonds - The company has no corporate bonds information[70] Financial Report This section presents the company's financial statements and significant accounting policies Financial Statements This report provides unaudited consolidated and parent company financial statements for the first half of 2019, including balance sheets, income statements, cash flow statements, and statements of changes in equity - This semi-annual report is unaudited[3] - The financial report includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[71][76][79][83][85][87][89][93] Significant Accounting Policies and Estimates The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards, with new financial instrument standards and revised financial statement formats implemented - The company implemented new financial instrument standards from January 1, 2019, reclassifying 452 million Yuan from "available-for-sale financial assets" to "other equity instrument investments"[160][163] - The company implemented Caihui [2019] No 6 document, revising financial statement formats by separately presenting "notes receivable and accounts receivable" and "notes payable and accounts payable" items[160][161] - The company accrues production safety fees at 15 Yuan/ton of raw coal and mine maintenance funds at 6.00 Yuan/ton or 8.00 Yuan/ton of coal[156][157] Notes to Consolidated Financial Statements As of June 30, 2019, total assets were 26.612 billion Yuan and total liabilities were 15.719 billion Yuan, with significant cash holdings and short-term debt - Cash and cash equivalents at period-end totaled 7.754 billion Yuan, of which 5.692 billion Yuan was deposited with the related party finance company[172][173] - Accounts receivable at period-end had a book balance of 1.784 billion Yuan, with 606 million Yuan provided for impairment, resulting in a book value of 1.178 billion Yuan, and over 68% of accounts receivable were aged over 1 year[176][177] - Short-term borrowings at period-end were 3.175 billion Yuan, a significant increase of 230.73% from 960 million Yuan at the beginning of the period[224] - Bonds payable at period-end totaled 2 billion Yuan, representing non-public directed debt financing instruments[246][247] Related Parties and Related Party Transactions The company's controlling shareholder is Datong Coal Mine Group Co Ltd, and extensive related party transactions exist with the group and its subsidiaries - The controlling shareholder is Datong Coal Mine Group Co Ltd, with a shareholding ratio of 57.46%[317] - The company engages in large-scale purchase and sale transactions. During the reporting period, coal sales to Qinhuangdao Tongmei Dayou Trading Co Ltd amounted to 471 million Yuan, and coal sales to Tongmei Datang Tashan Second Power Generation Co Ltd amounted to 289 million Yuan[327] - The company received 145 million Yuan in electricity services from related party Datong Coal Mine Group Power Industry Co Ltd during the current period[326] - The company has multiple related party entrustment/contracting and lease agreements, covering mine operations, coal washing plant operations, and property and land leases[329][331][335] - Deposits with related party Datong Coal Mine Group Finance Co Ltd totaled 5.692 billion Yuan at period-end[342] Catalogue of Reference Documents This section lists the documents available for public inspection