Affected by market conditions, Anyuan Coal Industry Group Co., Ltd. anticipates a loss of 247 million to 296 million yuan in 2024, an increase in losses compared to the previous year which could reach up to 62%.
On January 14, Anyuan Coal Industry Group Co., Ltd. disclosed in a statement that the company expects a net loss of 247 million to 296 million yuan in 2024, compared to a net loss of 113.8 million yuan in the same period last year, indicating an increase in losses ranging from 54% to 62%.
The estimated net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in 2024 is expected to be negative 237 million to negative 284 million yuan.
The main reasons for the projected losses, as stated by Anyuan Coal Industry, are attributed to the impact of safety accidents and the production rectification of three coal mines in Fengcheng area, resulting in a year-on-year decrease in coal sales volume of 141,000 tons, leading to a decrease of 65.28 million yuan; and a drop in coal market prices, with coal prices falling year-on-year leading to a loss of 165 million yuan. The decline in market prices appears to be the primary factor.
According to data from Wind, in 2024, the Qinhuangdao Port’s 5500 kcal power coal spot closing average price was 854.92 yuan/ton, a decrease of approximately 11.44% compared to the annual average price of 965.34 yuan/ton in 2023.
Additionally, based on operational data disclosed by Anyuan Coal Industry, in 2024, the company’s sales cost of commodity coal exceeded its sales revenue.
Specifically, the revenue from commodity coal sales was 1,093.71 million yuan, a decrease of 17.38% compared to the previous period; the cost of commodity coal sales was 1,151.82 million yuan, a decrease of 0.16%; resulting in a negative gross profit of 581.1 million yuan, a decrease of 134.18%.
In terms of production and sales volume, during the reporting period, Anyuan Coal Industry’s raw coal output was 1.61 million tons, down by 5.29% year-on-year; while the sales volume of commodity coal was 1.28 million tons, a decrease of 10.49%.
As of the close of trading on January 14, Anyuan Coal Industry’s stock price was at 4.18 yuan, an increase of 1.95%, with a turnover rate of 8.43% and trading volume of 834,300 shares, equivalent to a total turnover of 344 million yuan.
In terms of fund flow, the main funds had a net inflow of 21.3931 million yuan, accounting for 6.22% of the total turnover; speculative funds had a net outflow of 25.3198 million yuan, representing 7.36% of the total turnover; and retail funds had a net inflow of 3.9267 million yuan, making up 1.14% of the total turnover.
According to the report by The Paper, Anyuan Coal Industry is the only coal listed company in Jiangxi Province, mainly engaged in coal mining and operation, coal and material circulation. As of the third quarter of 2024, Anyuan Coal Industry had total liabilities of approximately 7.925 billion yuan, total assets of around 8.154 billion yuan, with an asset-liability ratio of about 97.2%.
Furthermore, as announced by Anyuan Coal Industry, on January 1st, Jiangxi Provincial Energy Group Co., Ltd. and Jiangxi Tungsten Industry Holdings Group Co., Ltd. signed an agreement on the “Free Transfer Agreement”, with Jiangxi Energy Group intending to transfer all of its 389 million shares of Anyuan Coal Industry (accounting for 39.34% of Anyuan Coal Industry’s total share capital) to Jiangxi Tungsten Holdings for free.
After the acquisition is completed, the controlling shareholder of Anyuan Coal Industry will change to Jiangxi Tungsten Holdings, while the actual controlling entity will remain as Jiangxi Provincial State-owned Assets Supervision and Administration Commission.