SLSVC(SH:600123) Zhong Guo Neng Yuan Wang·2025-11-03 06:39Core Viewpoint - Shanxi Lanhua Coal Chemical Co., Ltd. was fined 232,000 yuan due to nitrogen oxide emissions exceeding the standard by 0.34 times, highlighting environmental compliance issues in the coal chemical industry [1][3]. Regulatory Actions - The fine was issued by the Ecological Environment Bureau of Jincheng City, based on findings from an investigation conducted on June 30, 2025, which revealed that the nitrogen oxide hourly average concentration was 66.98 mg/m3, exceeding the standard of 50 mg/m3 [2][3]. - Lanhua Coal Chemical filed an appeal stating that the excess emissions were due to an unexpected incident and that they took immediate measures to mitigate pollution [3]. Financial Performance - Lanhua Technology, the parent company of Lanhua Coal Chemical, reported a significant decline in financial performance, with a revenue of 5.886 billion yuan for the first three quarters of 2025, down 30.09% year-on-year, and a net profit of only 10.51 million yuan, a staggering drop of 98.51% [3][4]. - In the third quarter alone, the company experienced a 37.61% decrease in main business revenue, totaling 1.835 billion yuan, and a net loss of 46.96 million yuan, marking a 130.27% decline year-on-year [4]. Market Conditions - The decline in performance is attributed to falling prices of key products such as coal and urea, as well as reduced investment income from a subsidiary that ceased operations [4]. - The average price of coal (excluding tax) was 485.76 yuan/ton, down 23.32% year-on-year, while the average price of urea was 1,628 yuan/ton, a decrease of 17% [4]. Operational Adjustments - Despite the challenges, Lanhua Technology is gradually restoring production in its main coal mines, with operations in key mines resuming normal levels from October 2025 [4]. - The company is also investing in energy-saving and environmental upgrades, with a total investment of 3.962 billion yuan for projects aimed at improving environmental compliance [4].