Summary of China Coal Energy Conference Call Company Overview - **Company**: China Coal Energy - **Period**: First half of 2025 Key Financial Metrics - **Revenue**: 744.4 billion CNY [2][3] - **Total Profit**: 119.4 billion CNY [2][3] - **Net Profit Attributable to Shareholders**: 77 billion CNY [2][3] - **Earnings Per Share**: 0.58 CNY [2][3] - **Commodity Coal Production**: 67.34 million tons, up 1.3% YoY [2][3] - **Commodity Coal Sales**: 67.11 million tons, up 1.4% YoY [2][3] - **Main Chemical Products Production**: 2.988 million tons, up 2.1% YoY [2][3] - **Main Chemical Products Sales**: 3.166 million tons, up 2.7% YoY [2][3] Cost Management - **Unit Sales Cost of Self-produced Commodity Coal**: 262.97 CNY/ton, down 30 CNY/ton YoY [4][5] - **Average Selling Price of Self-produced Commodity Coal**: 470 CNY/ton, down 114 CNY/ton YoY [4][13] - **Coking Coal Selling Price**: 885 CNY/ton, down 486 CNY/ton YoY [4][13] - **Cost Reduction Measures**: Focus on optimizing production organization and controlling costs [4][14] Project Development - **Key Projects**: - Li Bi Coal Mine - Wei Zi Gou Coal Mine - Wu Shun Qi Coal-Electricity Integration Project - Yulin Olefin Project - Tu Ke Liquid Sunshine Demonstration Project - Several photovoltaic projects have been connected to the grid [6] Market Dynamics - **Power Coal Production and Sales**: Increased in Q2 2025, while coke production decreased due to the temporary shutdown of Wangjialing Coal Mine, which resumed in early July [9] - **Price Differential**: Coking coal prices significantly higher than power coal, positively impacting Q2 performance [10] Inventory and Sales - **Sales Growth**: Significant increase in sales attributed to unrecognized inventory [11] - **Annual Production Target**: 133 million tons, with nearly 70 million tons completed in H1 2025, indicating manageable pressure for H2 [11] Long-term Contracts and Pricing - **Long-term Contract Fulfillment Rate**: Expected to improve in Q3 due to rising spot prices [12] - **Spot Price Recovery**: Expected to reach around 700 CNY, more favorable than previous quarters [12] Cost Outlook - **Cost Stability**: Anticipated to remain stable and possibly lower than last year's levels, with a long-term target of around 300 CNY/ton [14] Financial Health - **Cash Flow**: Decrease in operating cash flow due to profit decline and increased working capital [18][19] - **Investment Cash Flow**: Net outflow increased by nearly 5.9 billion CNY due to higher capital expenditures [20] Strategic Planning - **"14th Five-Year Plan"**: Under development, focusing on coal-electricity integration and expanding into new energy sectors [16] - **Shareholder Returns**: Emphasis on balancing shareholder returns with overall company interests [18] Additional Insights - **Safety and Maintenance Costs**: Increased focus on safety and maintenance expenditures, with a current reserve of approximately 5.1 billion CNY [15] - **Future Cost Reduction Potential**: Limited due to safety requirements, but ongoing efforts to optimize costs across the supply chain [15]