CSEC,China Shenhua(601088)2024-09-24 07:38Green and Low-Carbon Transformation - The company actively implements the "3060" dual-carbon target, focusing on green and low-carbon transformation, increasing investment in new energy, and exploring strategic and future industries [1] - 22 mines have passed national and provincial green mine certifications, and coal-fired power units have undergone ultra-low emission, flexibility, and heating retrofits, with 1,778 MW of energy-saving retrofits, 1,259 MW of flexibility retrofits, and 886 MW of heating retrofits completed by H1 2024 [1] - The company operates China's first high-power hydrogen-powered locomotive and has conducted the world's first 600MW coal-fired unit ammonia co-firing test [2] - The company's comprehensive energy consumption per 10,000 yuan of output value decreased by 10.2% in 2023 compared to 2020 [2] - The company has established the National Energy New Energy Industry Fund and the National Energy Low-Carbon Development Investment Fund, completing multiple new energy project investments [2] Resource Acquisition and Production - The company has obtained mining licenses for Xinjie 1 and Xinjie 2 mines and exploration licenses for Xinjie 3 and Xinjie 4 mines [2] - As of June 2024, the company's coal reserves reached 15.36 billion tons, an increase of 1.98 billion tons from the end of the previous year [3] - In H1 2024, the company's coal sales reached 229.7 million tons, a 5.4% YoY increase, with self-produced coal sales of 162.8 million tons (up 2.2%) and purchased coal sales of 66.9 million tons (up 14.2%) [3] - The company completed 1.632 billion tons of commercial coal production in H1 2024, a 1.6% YoY increase [12] Non-Coal Transportation and Logistics - The company's non-coal transportation volume reached 21.07 million tons in H1 2024, with railway transportation accounting for 12.2 million tons (up 18.4%) and port handling volume at 6.8 million tons (up 11.5%) [3] - The company has opened China-Europe freight train services and multimodal transport projects, contributing to regional economic development [4] Power Generation and Energy Projects - In H1 2024, the company's power generation reached 104.04 billion kWh, a 3.8% YoY increase, outperforming the national average growth rate of 1.7% for thermal power [17] - The company has 4 coal-fired and 2 gas-fired power projects under construction, totaling 12 units with approximately 8,000 MW of capacity [10] - The company's coal-fired units achieved an average utilization rate of 2,354 hours in H1 2024, 151 hours higher than the national average [17] Technological Innovation and Digitalization - The company has developed an intelligent driving system for heavy-haul trains, achieving 100% autonomous operation for 10,000-ton trains [4] - By June 2024, the company had 22 mines passing provincial-level intelligent mine certifications, with 36 intelligent mining faces and 63 intelligent tunneling faces [9] - The company's R&D investment in H1 2024 reached 1.336 billion yuan, accounting for 0.8% of revenue, focusing on intelligent mining, smart power plants, and low-carbon technologies [7] Financial Performance and Shareholder Returns - In H1 2024, the company's net profit attributable to shareholders was 29.504 billion yuan under Chinese accounting standards, a 11.3% YoY decrease [6] - The company distributed a final dividend of 2.26 yuan per share for 2023, representing 75.2% of net profit, higher than the 60% commitment [5] - The company's A-share price rose 41% and H-share price rose 34% in H1 2024, outperforming industry and market indices [10] ESG and Sustainability - The company has initiated a climate change management system project to comply with ESG disclosure requirements [15] - The company received an "A" rating from the China Securities Index and an "AA" rating from Wind in ESG evaluations [16] - The company's MSCI-ESG rating remained at "BB" level in 2024, despite a general downgrade trend in the industry [16] Cost Management and Efficiency - The company's self-produced coal unit cost decreased by 2.3% YoY in 2023, with labor costs decreasing by 16.5% [12] - The company has implemented measures to control costs, including budget execution, process optimization, and production mode improvements [13]