Core Viewpoint - China Qinfa Group announced the conditional sale of its wholly-owned subsidiary, Perpetual Goodluck Limited, to Tianhe Group Limited for RMB 30 million, aiming to restructure its business and focus on higher growth opportunities in the coal industry, particularly in Indonesia [1][4][5]. Company Summary - Perpetual Goodluck Limited is a wholly-owned subsidiary of China Qinfa Group, primarily engaged in coal business in China, with significant assets including five coal mines in Shanxi province [4][5]. - The financial performance of the subsidiary has significantly declined over the past three years, with revenues and gross profits dropping due to a decrease in average coal prices from RMB 838 per ton in 2022 to RMB 504 per ton in 2024 [4][14]. - For the fiscal year ending December 31, 2023, the subsidiary reported a post-tax loss of RMB 81.855 million, while it is projected to report a post-tax profit of RMB 499.664 million for the fiscal year ending December 31, 2024 [4][5]. Industry Context - The coal industry in China is facing challenges such as stricter environmental regulations and increased market competition, which may limit profitability in domestic coal operations [14]. - China Qinfa Group has been actively seeking acquisition opportunities to expand its resource reserves and enhance coal production capacity, particularly in Indonesia, where it has successfully acquired operating licenses for three coal mines [13][14]. - The decision to divest from Perpetual Goodluck Limited is part of a strategy to optimize asset structure and concentrate resources on more profitable ventures in the Indonesian coal market [15].
3000万甩卖山西5座煤矿！中国秦发紧急剥离亏损资产...