Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國中煤能源股份有限公司
(a joint stock company incorporated in the People's Republic of China with limited liability)
(Stock Code: 01898)
THIRD QUARTERLY REPORT 2019
Pursuant to the regulations and rules of China Securities Regulatory Commission and Shanghai Stock Exchange (the "SSE"), China Coal Energy Company Limited (the "Company" or "China Coal Energy", together with its subsidiaries, collectively the "Group") is required to publish reports on a quarterly basis.
This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
This announcement is a summary of the 2019 third quarterly financial report of the Company for the three months ended 30 September 2019. The full text of the quarterly financial report will be available on the website of The Stock Exchange of Hong Kong Limited (the "HKSE") on 28 October 2019. The full text of the quarterly financial report is in Chinese only.
I. | IMPORTANT NOTICE | ||||||
1.1 | The board of directors and the supervisory committee of the Company together with | ||||||
the directors, supervisors and the senior management thereof guarantee that the content | |||||||
of this quarterly report is true, accurate and complete and does not contain any false | |||||||
representations, misleading statements or material omissions, and severally and jointly | |||||||
accept legal responsibility for the content of this report. | |||||||
1.2 | Absence of directors | ||||||
Name of | Position of | Reason | Name | ||||
absent director | absent director | for absence | of proxy | ||||
Zhang Ke | Independent Director | Other work commitment | Zhang Chengjie | ||||
Zhao Rongzhe | Director | Other work commitment | Du Ji'an | ||||
1.3 | Li Yanjiang (the person-in-charge of the Company), Chai Qiaolin (the person-in-charge | ||||||
of accounting affairs) and Zheng Weili (the person responsible for the accounting | |||||||
department, i.e. head of the accounting department) guarantee that the financial | |||||||
statements set out in this quarterly report are true, accurate and complete. | |||||||
1.4 | The third quarterly report of the Company is unaudited. |
1
- BASIC INFORMATION OF THE COMPANY 2.1 Major financial data
Unit:RMB'000 | |||
Increase/decrease at | |||
the end of the | |||
reporting period as | |||
As at the end of | As at the end of | compared to the end | |
the reporting | the previous year | of the previous | |
Items | period | (Restated) | year (%) |
Total assets | 276,679,168 | 264,365,047 | 4.7 |
Net assets attributable to shareholders | |||
of the listed company | 97,621,224 | 92,107,431 | 6.0 |
From the | From the beginning of the | ||
beginning of the | previous year to the end | Increase/decrease | |
year to the end of | of the corresponding | compared to the | |
the reporting | period of the previous | corresponding | |
period (January | year (January to | period of the | |
to September) | September) (Restated) | previous year (%) | |
Net cash flows generated from | |||
operating activities | 16,906,475 | 16,767,210 | 0.8 |
From the | From the beginning of the | ||
beginning of the | previous year to the end | Increase/decrease | |
year to the end | of the corresponding | compared to the | |
of the reporting | period of the previous | corresponding | |
period (January | year (January to | period of the | |
to September) | September) (Restated) | previous year (%) | |
Operational revenue | 94,238,593 | 77,137,425 | 22.2 |
Net profit attributable to shareholders | |||
of the listed company | 5,761,125 | 4,063,985 | 41.8 |
Net profit attributable to shareholders | |||
of the listed company net of non- | |||
recurring gains or losses | 5,572,279 | 4,121,774 | 35.2 |
Weighted average return on net | Increased by 1.59 | ||
assets (%) | 6.07 | 4.48 | percentage points |
Basic earnings per share | |||
(RMB per share) | 0.43 | 0.31 | 38.7 |
Diluted earnings per share | |||
(RMB per share) | 0.43 | 0.31 | 38.7 |
2
Non-recurring gains or losses and relevant amounts
✓ Applicable | □ Not applicable | |||
Unit:RMB'000 | ||||
Amount for the period | ||||
from the beginning of | ||||
Amount for | the year to the end of | |||
the current | the reporting period | |||
period (July to | (January to | |||
Items | September) | September) | Explanations | |
Profit and loss on disposal of | ||||
non-current assets | 118 | 4,032 | - | |
Government grants included in profit or | ||||
loss for the current period, excluding | ||||
those closely related to the Company's | ||||
ordinary business and granted on an on- | ||||
going basis in fixed amount or volume | ||||
according to certain principles under | ||||
national policies | 31,988 | 117,172 | - | |
Net profit or loss for the period of | ||||
subsidiaries formed by business | ||||
combination under common control | ||||
from the beginning of the period to the | ||||
date of combination | - | -9,715 | - | |
Investment gain generated from disposal | ||||
of long-term equity investment | 143 | 692 | - | |
Reversal of impairment provisions for | ||||
receivables and contract assets subject | ||||
to individual impairment test | 2,178 | 6,682 | - | |
Other non-operating income and expenses | ||||
apart from the foregoing | 225,682 | 192,313 | - | |
Impact on minority shareholders' | ||||
interests (after tax) | -51,136 | -45,808 | - | |
Effect of income tax | -62,152 | -76,522 | - | |
Total | 146,821 | 188,846 | - | |
3
2.2 Major production and operational data
Unit:RMB | ||||
January to | ||||
January to | September | |||
September | 2018 | Percentage | ||
Items | Unit | 2019 | (Restated) | change % |
I. Coal operations | ||||
1. Production volume of commercial | ||||
coal | 10,000 tonnes | 7,716 | 5,587 | 38.1 |
Of which: Thermal coal | 10,000 tonnes | 6,878 | 4,924 | 39.7 |
Coking coal | 10,000 tonnes | 838 | 662.9 | 26.4 |
2. Sales volume of commercial coal | 10,000 tonnes | 16,229 | 12,194 | 33.1 |
(1) Sales volume of self produced | ||||
coal | 10,000 tonnes | 7,749 | 5,552 | 39.6 |
Of which: external sales volume | 10,000 tonnes | 7,254 | 5,377 | 34.9 |
(2) Sales volume of proprietary coal | ||||
trading | 10,000 tonnes | 8,046 | 6,139 | 31.1 |
Of which: external sales volume | 10,000 tonnes | 7,487 | 5,558 | 34.7 |
(3) Agency sales of coal | 10,000 tonnes | 434 | 503 | -13.7 |
4
January to | |||||
January to | September | ||||
September | 2018 | Percentage | |||
Items | Unit | 2019 | (Restated) | change % | |
II. Coal chemical operations | |||||
(I) Polyolefin | |||||
1. | Polyethylene production volume | 10,000 tonnes | 55.0 | 54.7 | 0.5 |
Sales volume | 10,000 tonnes | 55.1 | 54.5 | 1.1 | |
2. | Polypropylene production volume | 10,000 tonnes | 52.6 | 54.2 | -3.0 |
Sales volume | 10,000 tonnes | 51.9 | 54.8 | -5.3 | |
(II) Urea | |||||
1. | Production volume | 10,000 tonnes | 151.5 | 130.3 | 16.3 |
2. | Sales volume | 10,000 tonnes | 187.5 | 154.7 | 21.2 |
(III) Methanol | |||||
1. | Production volume | 10,000 tonnes | 72.8 | 52.1 | 39.7 |
2. | Sales volume | 10,000 tonnes | 72.8 | 52.5 | 38.7 |
Of which: external sales volume | 10,000 tonnes | 11.7 | 5.1 | 129.4 | |
III. Coal mining equipment operations | |||||
1. Output value of coal mining | RMB100 | ||||
equipment | million | 65.6 | 51.7 | 26.9 | |
Note: The sales volume of commercial coal and methanol of the Company in 2019 includes the internal self-consumption, and the relative data of 2018 is adjusted correspondingly.
5
2.3 Major differences arising from the adoption of different accounting standards in preparing the financial statements
Unit:RMB'000
Net profit attributable to | Net assets attributable to | ||||
shareholders of the | shareholders of | ||||
listed company | the listed company | ||||
January to | As at 31 | ||||
January to | September | As at 30 | December | ||
September | 2018 | September | 2018 | ||
Items | 2019 | (Restated) | 2019 | (Restated) | |
According to PRC GAAP | 5,761,125 | 4,063,985 | 97,621,224 | 92,107,431 | |
Items and amounts adjusted according to IAS: | |||||
(a) Adjustment to special funds and | |||||
deferred tax of the coal industry | 802,345 | 1,000,956 | -36,015 | 28,680 | |
(b) Adjustment to floating of non-tradable | |||||
shares under equity split | - | - | -155,259 | -155,259 | |
(c) Adjustment to government grants | 2,783 | 2,783 | -26,897 | -29,680 | |
According to IAS | 6,566,253 | 5,067,724 | 97,403,053 | 91,951,172 | |
Explanations on major reconciliations are as follows:
- Adjustment to special reserves and relevant deferred tax: special reserves comprise maintenance fee, safety fund, coal mine transformation fund, mining environmental restoration security deposit and sustainable development reserve. Under PRC GAAP, the Group should make provisions for the special reserves which will be accounted as the production cost and contributions made to the special reserves of equity attributable to shareholders. Non-capital expenditure incurred should be directly offset against special reserves upon occurrence, while capital expenditure incurred should be recorded as fixed assets upon completion, and offset against special reserves based on the cost of the fixed assets with accumulated depreciation fully recognised. After that, no subsequent provisions for depreciation would be made to the relevant fixed assets. Under IFRS, provisions made for the special reserves should be recorded as retained earnings provision while the relevant expenditures are recognised upon occurrence and the special reserves are accordingly transferred to retained earnings.
- Under PRC GAAP, the consideration paid by holders of non-tradable shares to holders of tradable shares in accordance with the reform proposal of equity split should be recorded as long-term equity investments in the balance sheet. Under IFRS, such consideration shall be recorded as interests of minority shareholders directly deducted from the equity attributable to shareholders.
- Under PRC GAAP, subsidies considered as capital investment by the government should be recorded in "capital reserve". Under IFRS, the subsidies mentioned above shall be treated as government grants.
6
2.4 Total number of shareholders, top 10 shareholders and top 10 shareholders holding tradable shares (or shareholders not subject to trading moratorium) as at the end of the reporting period
Unit: Share | |||||||
Total number of shareholders | 153,317 | ||||||
Particulars of top 10 shareholders | |||||||
Number of shares | Number of | Shares pledged | |||||
held as at the | Shareholding | shares subject | |||||
or frozen | |||||||
Name of | end of the | percentage | to trading | Nature of | |||
shareholders (full name) | reporting period | (%) | moratorium | Status | Number | shareholders | |
China National Coal Group Corporation | 7,605,207,608 | 57.36 | - | Nil | 0 | State-owned | |
legal person | |||||||
HKSCC NOMINEES LIMITED | 3,952,875,163 | 29.81 | - | Unknown | - | Foreign legal | |
person | |||||||
China Securities Finance Corporation | 346,112,355 | 2.61 | - | Nil | 0 | State-owned | |
Limited (中國證券金融股份有限公司) | legal person | ||||||
China Coal Hong Kong Limited | 132,351,000 | 1.00 | - | Nil | 0 | State-owned | |
(中煤能源香港有限公司) | legal person | ||||||
Central Huijin Asset Management Company | 83,035,400 | 0.63 | - | Nil | 0 | State-owned | |
Limited (中央匯金資產管理有限責任公 | legal person | ||||||
司) | |||||||
Hong Kong Securities Clearing | 49,752,568 | 0.38 | - | Nil | 0 | Foreign legal | |
Company Limited | person | ||||||
Xu Kaidong (徐開東) | 26,000,000 | 0.20 | - | Nil | 0 | Domestic | |
natural | |||||||
person | |||||||
Abu Dhabi Investment Authority | 15,960,613 | 0.12 | - | Nil | 0 | Foreign legal | |
person | |||||||
Hejin Wannianchun Real Estate Co., Ltd. (河 | 10,329,500 | 0.08 | - | Nil | 0 | Domestic non | |
津市萬年春置業有限公司) | state-owned | ||||||
legal person | |||||||
China Everbright Bank Co., Ltd. - | 9,684,471 | 0.07 | - | Nil | 0 | Others | |
Everbright Pramerica Quantitative Core | |||||||
Securities Investment Fund | |||||||
(中國光大銀行股份有限公司- | |||||||
光大保德信量化核心證券投資基金) | |||||||
7
Particulars of top 10 shareholders not subject to trading moratorium
Number of listed | ||||
shares held not | Type and number of Shares | |||
Name of shareholders | subject to trading | |||
moratorium | Type | Number | ||
China National Coal Group Corporation | Ordinary shares | |||
(中國中煤能源集團有限公司) | 7,605,207,608 | denominated in RMB | 7,605,207,608 | |
HKSCC NOMINEES LIMITED | Overseas listed foreign | |||
3,952,875,163 | shares | 3,952,875,163 | ||
China Securities Finance Corporation Limited | Ordinary shares | |||
(中國證券金融股份有限公司) | 346,112,355 | denominated in RMB | 346,112,355 | |
China Coal Hong Kong Limited | Overseas listed foreign | |||
(中煤能源香港有限公司) | 132,351,000 | shares | 132,351,000 | |
Central Huijin Asset Management Company Limited | Ordinary shares | |||
(中央匯金資產管理有限責任公司) | 83,035,400 | denominated in RMB | 83,035,400 | |
Hong Kong Securities Clearing Company Limited | Ordinary shares | |||
49,752,568 | denominated in RMB | 49,752,568 | ||
Xu Kaidong (徐開東) | Ordinary shares | |||
26,000,000 | denominated in RMB | 26,000,000 | ||
Abu Dhabi Investment Authority | Ordinary shares | |||
15,960,613 | denominated in RMB | 15,960,613 | ||
Hejin Wannianchun Real Estate Co., Ltd. | Ordinary shares | |||
(河津市萬年春置業有限公司) | 10,329,500 | denominated in RMB | 10,329,500 | |
China Everbright Bank Co., Ltd. - Everbright Pramerica | ||||
Quantitative Core Securities Investment Fund | ||||
(中國光大銀行股份有限公司- | Ordinary shares | |||
光大保德信量化核心證券投資基金) | 9,684,471 | denominated in RMB | 9,684,471 | |
Explanations on affiliated relationship or parties | China Coal Hong Kong Limited (中煤能源香港有限公司) is a wholly- | |||
acting in concert among the abovementioned | owned subsidiary of China Coal Group, the controlling shareholder of the | |||
shareholders | Company. It is not certain if any of the other shareholders are affiliated | |||
or acting in concert with each other. | ||||
Explanations on preference shareholders with voting | The Company does not | have preference shares and has no preference | ||
rights restored and the number of shares held | shareholders with voting rights restored. | |||
8
Notes: The above tables of particulars of top 10 shareholders and particulars of top 10 shareholders not subject to trading moratorium are based on the followings:
- The above information was prepared in accordance with the register of shareholders of the Company as at 30 September 2019 provided by the China Securities Depository and Clearing Corporation Limited Shanghai Branch and Computershare Hong Kong Investor Services Limited.
- The A shares held by Hong Kong Securities Clearing Company Limited are held on behalf of various customers.
- The H shares held by HKSCC Nominees Limited are held on behalf of various customers.
- As at 30 September 2019, according to the disclosure of interests published on the website of HKSE, Funde Sino Life Insurance Co., Ltd. had long positions in 2,012,858,147 H shares of the Company.
2.5 Total number of holders of preference shares, top 10 holders of preference shares and top 10 holders of preference shares (not subject to trading moratorium) as at the end of the reporting period
- Applicable ✓ Not applicable
9
-
SIGNIFICANT EVENTS
3.1 Significant changes of the major accounting items and financial indicators of the Company and the reasons thereof
✓ Applicable □ Not applicable
3.1.1 Analysis on reasons for the major changes in items on the balance sheet
Unit: RMB'000 | ||||
As at | As at | |||
30 September | 31 December | Increase/ | ||
Items | 2019 | 2018 (Restated) | decrease (%) | Major reasons for the changes |
Cash at bank and | 31,345,687 | 23,879,163 | 31.3 | Mainly due to the fact that the Company |
on hand | further enhanced its profitability and | |||
maintained a good level of cash inflow | ||||
from operations. | ||||
Trade receivable | 8,704,574 | 4,881,389 | 78.3 | Mainly due to the increment in the Group's |
revenue which increased the trade | ||||
receivables within the settlement period | ||||
accordingly. | ||||
Prepayments | 2,072,768 | 1,591,545 | 30.2 | Mainly due to an increase in prepayments |
caused by the expansion of the Company's | ||||
business scale. | ||||
Other receivables | 3,012,994 | 1,884,845 | 59.9 | Mainly due to the fact that in order to |
implement the national energy strategy | ||||
and deepen the energy cooperation | ||||
between Jiangsu province and Shanxi | ||||
province, Pingshuo Group made capital | ||||
contribution to Sujin Energy Holding | ||||
Company Limited by injecting its 51% | ||||
equity interests in China Coal Pingshuo | ||||
No.1 Coal Gangue Power Generation | ||||
Company Limited. As such, China | ||||
Coal Pingshuo No.1 Coal Gangue | ||||
Power Generation Company Limited | ||||
was no longer included in the scope of | ||||
consolidation and Pingshuo Group no | ||||
longer offset its receivables. | ||||
Other current assets | 2,346,102 | 3,455,409 | -32.1 | Mainly due to the short-term loan provided |
by China Coal Finance Company to the | ||||
members within the Group (other than | ||||
China Coal Energy) became overdue. | ||||
10
As at | As at | |||
30 September | 31 December | Increase/ | ||
Items | 2019 | 2018 (Restated) | decrease (%) | Major reasons for the changes |
Other investments | 2,332,305 | 4,563,851 | -48.9 | Mainly because part of the Company's other |
in equity | investments in equity instruments were | |||
instruments | changed to long-term equity investment | |||
for accounting measurement. | ||||
Construction in | 17,092,518 | 25,662,240 | -33.4 | Mainly due to the combined effects of |
progress | the Company's partial transfers of its | |||
construction-in-progress projects to | ||||
fixed assets, the exclusion of China | ||||
Coal Pingshuo No.1 Coal Gangue Power | ||||
Generation Company Limited from the | ||||
scope of consolidation and the increase | ||||
in the Company's contribution to | ||||
infrastructures in the current period. | ||||
Right-of-use assets | 438,356 | - | - | The Company recognizes the right to use |
leased assets during the lease term as | ||||
right-to-use assets in accordance to the | ||||
newly revised "Accounting Standards for | ||||
Business Enterprises No. 21 - Leasing". | ||||
Other non-current | 9,958,381 | 6,686,012 | 48.9 | Mainly due to the increase in long-term loan |
assets | provided by China Coal Finance Company | |||
to other members within the Group | ||||
(except China Coal Group) and the fact | ||||
that the shareholder loans provided by | ||||
Pingshuo Group previously was no longer | ||||
counted in due to the exclusion of China | ||||
Coal Pingshuo No.1 Coal Gangue Power | ||||
Generation Company Limited from the | ||||
scope of consolidation. | ||||
Non-current | 35,793,219 | 17,825,310 | 100.8 | Mainly due to an increase in the long-term |
liabilities due | borrowings and bonds payable that are | |||
within one year | due within one year. | |||
Lease liability | 440,405 | - | - | The Company recognizes the portion of the |
outstanding lease payments that was more | ||||
than one year overdue as lease liability | ||||
in accordance to the newly revised | ||||
"Accounting Standards for Business | ||||
Enterprises No. 21 - Leasing". | ||||
11
As at | As at | |||
30 September | 31 December | Increase/ | ||
Items | 2019 | 2018 (Restated) | decrease (%) | Major reasons for the changes |
Provisions | 2,510,798 | 1,495,978 | 67.8 | Mainly due to the fact that the coal producing |
enterprises of the Company recognized | ||||
the estimated expenditure related to | ||||
environmental governance and restoration | ||||
as fixed assets and increased estimated | ||||
liabilities accordingly in accordance | ||||
with relevant management rules of the | ||||
mine geological environment governance | ||||
and restoration fund issued by the state | ||||
and local governments and the mine | ||||
geological environment governance | ||||
and restoration plans prepared by the | ||||
enterprises. | ||||
3.1.2 Analysis on reasons for the major changes in items on the income statement Unit: RMB'000
January to | January to | |||
September | September | Increase/ | ||
Items | 2019 | 2018 (Restated) | decrease (%) | Major reasons for the changes |
Operating revenue | 94,238,593 | 77,137,425 | 22.2 | Mainly due to a year-on-year increase in sales |
of coal and other major products of the | ||||
Company. | ||||
Operating cost | 65,157,302 | 54,342,203 | 19.9 | Same as above. |
Tax and surcharges | 3,054,167 | 2,304,694 | 32.5 | Mainly due to a year-on-year increase in the |
resource tax and additional taxes and | ||||
fees as a result of the increase in sales | ||||
revenue of the Company's self-produced | ||||
commercial coal. | ||||
Selling expenses | 10,190,006 | 7,667,160 | 32.9 | Mainly due to the increase in sales volume of |
coal that bears the railroad transportation | ||||
costs and port expenses as a result of the | ||||
expansion of coal sales scale. | ||||
Research and | 156,053 | 117,141 | 33.2 | Mainly due to the Company's increased |
development | investment in the research and | |||
expenses | development on science and technology, | |||
resulting in the corresponding increase in | ||||
research and development expenses. | ||||
12
January to | January to | |||
September | September | Increase/ | ||
Items | 2019 | 2018 (Restated) | decrease (%) | Major reasons for the changes |
Finance costs | 3,558,380 | 2,704,383 | 31.6 | Mainly attributable to, among others, the |
effect that certain construction projects | ||||
were put into production whereby the | ||||
relevant interest expenses were ceased to | ||||
be capitalized. | ||||
Investment gain | 2,029,427 | 1,323,297 | 53.4 | Mainly due to the increase in investment |
gains recognized by the Company in | ||||
proportion to shareholding as a result | ||||
of better economic benefits of equity | ||||
investment companies. | ||||
Non-operating | 285,837 | 40,936 | 598.3 | Mainly due to the fact that in the process of |
income | implementing the supply side structural | |||
reform, relevant coal enterprises | ||||
transferred their surplus coal capacity | ||||
indicators to enhance income in | ||||
accordance with relevant coal capacity | ||||
replacement policies issued by the state. | ||||
3.1.3 Analysis on reasons for major changes in items on the cash flow statement Unit: RMB'000
January to | Increase/ | |||
January to | September | decrease in | ||
Items | September 2019 | 2018 (Restated) | amount | Major reasons for the changes |
Net cash flows | 16,906,475 | 16,767,210 | 139,265 | Mainly attributable to the year-on-year |
generated from | increase of the operating results of | |||
operating | the Company, and the simultaneous | |||
activities | streamlined capital management, which | |||
resulted in the year-on-year increase | ||||
in the net cash inflow from operating | ||||
activities. | ||||
Net cash flows | -7,892,789 | -13,735,251 | 5,842,462 | Mainly due to the combined effect of the |
generated | year-on-year decrease in the capital | |||
from investment | expenditure of the Company, the year-on- | |||
activities | year decrease in the cash outflow arised | |||
from the change in time deposits with an | ||||
initial deposit period of more than three | ||||
months, and the year-on-year increase | ||||
in the cash outflow generated from the | ||||
issuance of self-operated loan by China | ||||
Coal Finance to the members within the | ||||
Group (other than China Coal Energy). | ||||
13
January to | Increase/ | |||
January to | September | decrease in | ||
Items | September 2019 | 2018 (Restated) | amount | Major reasons for the changes |
Net cash flows | -2,402,313 | -1,471,544 | -930,769 | Mainly due to the year-on-year decrease in |
generated from | the net increase in debt facility of the | |||
financing | Company and the year-on-year increase in | |||
activities | the cash paid for dividend distribution.. | |||
3.1.4 Revenue, cost and gross profit of coal operations
For the period from January to September 2019, the release of the advanced production capacity of the Company's self-owned coal mines and the further expansion in the market of purchased and exported coal led to an increase in the sales volume of coal and the further optimization of the variety structure of self- produced commercial coal, which resulted in a significant year-on-year increase in the revenue, cost of sales and gross profit of the Group's coal operations. For the period from January to September 2019, the revenue from coal operations of the Company increased from RMB59.486 billion for the same period of last year to RMB75.156 billion, representing an increase of RMB15.670 billion; the cost of sales of coal operations increased from RMB40.685 billion for the same period of last year to RMB50.729 billion, representing an increase of RMB10.044 billion; and the gross profit of coal operations increased from RMB18.801 billion for the same period of last year to RMB24.427 billion, representing an increase of RMB5.626 billion.
14
3.1.5 Coal sales volume and selling prices before netting of inter-segmental sales and the year-on-year changes
Currency: RMB
January to | January to | Increase/ | Increase/decrease | |||||||||
September 2019 | September 2018 | decrease in amount | in percentage | |||||||||
Sales | Selling | Sales | Selling | Sales | Selling | |||||||
volume | price | volume | price | volume | price | Sales | Selling | |||||
(10,000 | (RMB/ | (10,000 | (RMB/ | (10,000 | (RMB/ | volume | price | |||||
Items | tonnes) | tonne) | tonnes) | tonne) | tonnes) | tonne) | (%) | (%) | ||||
I. Self-produced | Total | 7,749 | 498 | 5,552 | 514 | 2,197 | -16 | 39.6 | -3.1 | |||
commercial coal | ||||||||||||
(I) Thermal coal | 6,911 | 437 | 4,889 | 448 | 2,022 | -11 | 41.4 | -2.5 | ||||
1. | Domestic sale | 6,897 | 437 | 4,889 | 448 | 2,008 | -11 | 41.1 | -2.5 | |||
2. | Export | 14 | 590 | ☆ | ☆ | 14 | - | - | - | |||
(II) Coking coal | 838 | 995 | 663 | 997 | 175 | -2 | 26.4 | -0.2 | ||||
1. | Domestic sale | 838 | 995 | 663 | 997 | 175 | -2 | 26.4 | -0.2 | |||
II. Proprietary coal trading | Total | 8,046 | 455 | 6,139 | 504 | 1,907 | -49 | 31.1 | -9.7 | |||
(I) Domestic resale | 7,939 | 453 | 6,110 | 501 | 1,829 | -48 | 29.9 | -9.6 | ||||
(II) Self-operated | 23 | 1,282 | 19 | 1,333 | 4 | -51 | 21.1 | -3.8 | ||||
exports* | ||||||||||||
(III) Import trading | 84 | 403 | 10 | 478 | 74 | -75 | 740.0 | -15.7 | ||||
III. Import and export and | Total | 434 | 5 | 503 | 6 | -69 | -1 | -13.7 | -16.7 | |||
domestic agency★ | ||||||||||||
(I) | Import agency | 83 | 4 | 74 | 2 | 9 | 2 | 12.2 | 100.0 | |||
(II) | Export agency | 125 | 8 | 183 | 8 | -58 | - | -31.7 | - | |||
(III) Domestic agency | 226 | 3 | 246 | 6 | -20 | -3 | -8.1 | -50.0 | ||||
☆: N/A for the period.
*: Briquette export.
★: Selling price is agency service fee.
Note: Sales volume of the commercial coal includes the amount of inter-segmentalself-consumption volume within the Company, which was 10.54 million tonnes for January to September 2019 and 7.56 million tonnes for January to September 2018.
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3.1.6 The unit cost of sales of self-produced commercial coal and the year-on-year changes
Unit: RMB/tonne Currency: RMB
Year-on-year | ||||
Increase/ | ||||
January to | January to | Increase/ | decrease in | |
September | September | decrease | percentage | |
Items | 2019 | 2018 | in amount | (%) |
Materials costs | 59.09 | 48.10 | 10.99 | 22.8 |
Staff costs | 30.13 | 36.25 | -6.12 | -16.9 |
Depreciation and | ||||
amortization | 52.33 | 47.40 | 4.93 | 10.4 |
Repair expenses | 8.38 | 10.41 | -2.03 | -19.5 |
Outsourcing mining | ||||
engineering fee | 30.24 | 21.42 | 8.82 | 41.2 |
Other costs | 32.46 | 44.45 | -11.99 | -27.0 |
Unit cost of sales of | ||||
self-produced | ||||
commercial coal | 212.63 | 208.03 | 4.60 | 2.2 |
For the period from January to September 2019, the Company's unit cost of sales of self-produced commercial coal was RMB212.63/tonne, representing an increase of RMB4.60/tonne or 2.2% as compared to RMB208.03/tonne for the same period of last year, which was mainly attributable to the increase in the unit outsourcing mining engineering fees and costs of materials due to the increase in the mining engineering volume and materials consumed as the Company increased its efforts to strip the open-pit mines and excavate the underground mines in accordance with the needs of continuous production. In the second half of 2018, certain infrastructure and technological innovation projects were gradually transferred to fixed assets, resulting in an increase in depreciation and amortization, which led to an increase in the unit costs of depreciation and amortization. Meanwhile, the dilutive effect of the release of the advanced production capacity of the Company's self-owned coal mines resulted in the increase in the production of self-produced commercial coal, which led to the decrease in unit staff cost and repair expenditures. In addition, a year-on-year increase in the capitalization of special reserves such as the safety fund and maintenance fees used to ensure production safety led to a decrease in the special reserve balances of other costs.
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3.1.7 Sales volume and price of major chemical products and the year-on-year changes
Currency: RMB
January to | January to | Increase/decrease | Increase/decrease | |||||
September 2019 | September 2018 | in amount | in percentage | |||||
Sales | Selling | Sales | Selling | Sales | Selling | |||
volume | price | volume | price | volume | price | Sales | Selling | |
(10,000 | (RMB/ | (10,000 | (RMB/ | (10,000 | (RMB/ | volume | price | |
Items | tonnes) | tonne) | tonnes) | tonne) | tonnes) | tonne) | (%) | (%) |
(I) Polyolefin | 107.0 | 7,350 | 109.4 | 8,059 | -2.4 | -709 | -2.2 | -8.8 |
1. Polyethylene | 55.1 | 7,112 | 54.5 | 8,234 | 0.6 | -1,122 | 1.1 | -13.6 |
2. Polypropylene | 51.9 | 7,603 | 54.8 | 7,885 | -2.9 | -282 | -5.3 | -3.6 |
(II) Urea | 187.5 | 1,795 | 154.7 | 1,786 | 32.8 | 9 | 21.2 | 0.5 |
(III) Methanol | 72.8 | 1,506 | 52.5 | 2,117 | 20.3 | -611 | 38.7 | -28.9 |
Of which: Inter-segment | 61.1 | 1,495 | 47.4 | 2,092 | 13.7 | -597 | 28.9 | -28.5 |
self-consumption | ||||||||
volume◆ | ||||||||
External sales | 11.7 | 1,567 | 5.1 | 2,351 | 6.6 | -784 | 129.4 | -33.3 |
◆: The amount of inter-segmentself-consumption volume represents the supply of methanol by China Coal Yuanxing Company and China Coal Shaanxi Company to Mengda Chemical Company and Ordos Energy Chemical Company.
3.1.8 Unit cost of sales of major chemical products and year-on-year changes
Unit: RMB/tonne Currency: RMB
Year-on-year | |||||
Increase/ | |||||
January to | January to | Increase/ | decrease in | ||
September | September | decrease | percentage | ||
Items | 2019 | 2018 | in amount | (%) | |
(I) Polyolefin | 5,508 | 6,166 | -658 | -10.7 | |
1. Polyethylene | 5,564 | 6,156 | -592 | -9.6 | |
2. Polypropylene | 5,449 | 6,176 | -727 | -11.8 | |
(II) Urea | 1,095 | 1,103 | -8 | -0.7 | |
(III) Methanol | 1,377 | 1,470 | -93 | -6.3 | |
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- Analysis and explanation on the progress of significant events and their impacts and solutions
- Applicable ✓ Not applicable
- Undertakings not yet fully performed during the reporting period
- Applicable ✓ Not applicable
- Warning in respect of possible loss or any significant changes in aggregate net profit from beginning of the year until the end of the next reporting period as compared with that of the corresponding period of the previous year and the reasons thereof
✓ Applicable □ Not applicable
In 2019, the Company will continue to deepen the supply-side structural reform, strive to promote high-quality development, further release its advanced production capacity as well as further optimize its structure in industrial organization and product portfolio, in order to achieve further improvement in its profitability. It is expected that the net profit of the Company for 2019 may increase substantially as compared to that of last year.
By Order of the Board
China Coal Energy Company Limited
Li Yanjiang
Chairman of the Board, Executive Director
Beijing, the PRC, 28 October 2019
As at the date of this announcement, the executive directors of the Company are Li Yanjiang, Peng Yi and Niu Jianhua; the non-executive directors of the Company are Du Ji'an, Zhao Rongzhe and Xu Qian; and the independent non-executive directors of the Company are Zhang Ke, Zhang Chengjie, and Leung Chong Shun.
This English language version is provided for reference purpose only. In the event of any inconsistency between the English and the Chinese version, the Chinese version shall prevail.
- For identification purpose only
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China Coal Energy Company Limited published this content on 28 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2019 08:51:07 UTC