Hua Xia Shi Bao·2025-07-19 01:13Core Viewpoint - The coal industry is experiencing significant profit declines across multiple companies due to a sharp drop in coal prices, with many firms reporting losses or substantial reductions in net profit for the first half of 2025 [1][2][3]. Company Performance - Zhengzhou Coal Electricity and Panjiang Coal & Electricity have shifted from profit to loss, with Shanghai Energy forecasting a net profit of 190 million to 230 million yuan, a decrease of 51.27% to 59.75% year-on-year [2]. - China Shenhua, the industry leader, expects a net profit of 23.6 billion to 25.6 billion yuan, down 39 billion to 59 billion yuan compared to the same period last year, representing a decline of 13.2% to 20.0% [2][3]. - Gansu Energy is projected to report a net loss of 180 million yuan, while Jizhong Energy anticipates a profit of 330 million to 400 million yuan, down 60.06% to 67.05% year-on-year [2][3]. - Lanhua Science and Technology expects a net profit of 40 million to 60 million yuan, a decrease of 89.12% to 92.75% [2][3]. - Yongtai Energy forecasts a profit of 120 million to 150 million yuan, down 87.39% to 89.91% year-on-year [2][3]. - Anyuan Coal Industry expects a net loss of 259 million to 310 million yuan, indicating an expanded loss compared to the previous year [2][3]. Industry Trends - The coal industry has been in a downward profit trend for nearly two years, with major companies like China Shenhua and Pingmei Shenma Coal & Electricity reporting consecutive quarterly profit declines [4]. - The decline in profits is attributed to falling coal prices, with the price of 5500 kcal coal at North Port dropping nearly 20% to 620 yuan per ton by June 30, 2025 [1][4]. - The coal market has experienced three significant price fluctuations since the establishment of the socialist market economy, with the current downturn being the most severe [5][7]. - In 2023, coal imports reached a record high of 474 million tons, up 61.8% year-on-year, contributing to the price decline [6][7]. - The overall revenue of the coal mining and washing industry fell by 19.2% year-on-year in the first five months of 2025, with total profits down by 50.6% [7]. Price Dynamics - The price of coal has been on a downward trend since 2023, with analysts suggesting that prices may have entered a reasonable range and could be nearing the bottom [8]. - The price of Q5500 coal at Qinhuangdao Port hit a low of 617 yuan per ton on June 5, 2023, marking a 49.6% drop from the peak earlier that year [4][5].