ZCE(SH:600121) Zhong Guo Zheng Quan Bao·2026-01-24 07:41Core Viewpoint - Zhengzhou Coal Power announced the decision to cease production at the Chao Hua Coal Mine to optimize its industrial structure, dispose of inefficient assets, and control operational risks [1][2] Group 1: Mine Details - The Chao Hua Coal Mine, located in Xinmi City, Henan Province, was completed and put into operation in December 1993, with a certified production capacity of 1.2 million tons per year, primarily extracting low-quality coal [1] - The mine is classified as a late-stage mining operation, with remaining recoverable reserves of approximately 4.38 million tons, distributed mainly in the eastern section of the 31 mining area and the deep section of the 22 mining area [1] - The eastern section of the 31 mining area has a recoverable reserve of 2.33 million tons but has been closed since 2018 due to mining difficulties caused by factors such as mining pressure, gas, and water hazards [1] Group 2: Economic Assessment - The deep section of the 22 mining area has a recoverable reserve of 2.05 million tons, but it faces high energy consumption, significant investment, and low output challenges over the next three years due to water hazard prevention difficulties and complex geological structures [1] - The comprehensive assessment indicates that the coal resources at Chao Hua Coal Mine are nearing depletion, and continued mining presents economic, technical, and safety challenges, compounded by declining coal market prices, rendering it economically unviable [1] Group 3: Financial Implications - The cessation of operations at Chao Hua Coal Mine is expected to reduce the company's sources of losses, thereby optimizing resource allocation and improving operational efficiency [2] - Preliminary financial estimates indicate that the company will need to recognize an impairment provision of 311 million yuan, which will directly reduce the net profit attributable to shareholders of the listed company by the same amount in 2025 [2]