pingmei coal(SH:601666)2025-04-15 14:30Summary of Conference Call Company Overview - The conference call involved Pingmei Shenma Group Co., Ltd. discussing its 2024 annual performance and operational updates [1][2]. Key Financial Metrics - In 2024, the company achieved: - Raw coal production: 27.53 million tons - Coking coal production: 11.95 million tons - Commodity coal sales: 26.41 million tons - Average selling price of coking coal: 1,753 CNY per ton - Average selling price of mixed coal: 537 CNY per ton - Comprehensive selling price of commodity coal: 1,016 CNY per ton - Revenue: 30.281 billion CNY - Net profit attributable to shareholders: 2.35 billion CNY - Basic earnings per share: 0.9616 CNY [2][3]. Price Fluctuations and Market Conditions - The company experienced a significant decline in revenue, approximately 40%, primarily due to fluctuations in coal prices [2]. - Coal prices varied throughout 2024: - Q1: 2,320 CNY - Q2: 2,120 CNY - Q3: 2,120 CNY - Q4: 1,920 CNY - Current prices in early 2025 are 1,770 CNY in January and 1,540 CNY in March, indicating a downward trend [2][3]. Production and Cost Management - The company is focusing on cost reduction and efficiency improvements to mitigate the impact of declining coal prices [3][8]. - The target is to reduce controllable costs by approximately 10% [11][25]. - The company plans to maintain stable production levels despite market pressures, emphasizing the importance of continuous production in the coal industry [8][9]. Inventory and Sales Pressure - The inventory of mixed coal at the end of the year was approximately 270,000 tons, which is significantly higher than the previous year [5]. - The company does not foresee significant sales pressure for mixed coal due to stable demand [6][7]. Strategic Initiatives - The company is involved in various strategic projects, including coal-to-electricity initiatives and partnerships in Xinjiang [13][19]. - Future capital expenditures are planned to be around 4.149 billion CNY, with a focus on fixed asset updates and improvements [16][17]. Industry Context - Other companies in the coking coal sector are reportedly facing production cuts or limitations due to market conditions, with some experiencing slight losses [14][15]. - The overall market for coking coal is under pressure, with prices potentially leading to widespread losses across the industry if they continue to decline [15]. Conclusion - The conference highlighted Pingmei Shenma's commitment to managing costs and maintaining production levels amid challenging market conditions, while also exploring strategic growth opportunities in coal and related sectors [29].