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Caixin News August 21st (Reporter Liu Yue) In the first half of this year, coal prices were under pressure, and the performance of many coal enterprises declined, including Anhui Hengyuan Coal Industry and Electricity Power (600971.SH). Although the production and sales volume of commodity coal increased year-on-year in the first half of the year, the company's net profit in the first half of the year dropped by more than 30% due to the decline in coal prices.

The company announced tonight that in the first half of this year, the company achieved revenue of 3.893 billion yuan, a year-on-year decrease of 8.13%, and a net profit attributable to the parent of 0.758 billion yuan, a year-on-year decrease of 32.14%.

According to institutional expectations, data from Hithink Royalflush Information Network shows that in the last 6 months, a total of 7 institutions have made forecasts for the company's performance in 2024, with a mean forecast of 1.959 billion yuan, a decrease of 3.79% compared to last year.

In the semi-annual report, Anhui Hengyuan Coal Industry and Electricity Power stated that in the first half of the year, the production and sales volume of raw coal and commodity coal increased compared to the same period, but due to a greater decrease in coal product prices compared to the same period, the company's operating income and net profit both declined year-on-year. During the reporting period, the production volume of raw coal was 4.9417 million tons, an increase of 10.33% year-on-year, the production volume of commodity coal was 3.8475 million tons, an increase of 6.98% year-on-year, the sales volume of commodity coal was 3.8815 million tons, an increase of 2.36% year-on-year, and the main business revenue of coal was 3.705 billion yuan, a year-on-year decrease of 7.07%.

Anhui Hengyuan Coal Industry and Electricity Power mainly engages in coal mining, washing, transportation, sales, and production services. Coal products are mainly used in the electrical utilities, steel, and other industries. Looking back on the first half of this year, many coal enterprises in their performance forecasts indicated that the main business was affected by factors such as the decline in coal product prices, leading to a year-on-year decline in profits.

From an industry perspective, some industry insiders stated that the peak consumption season for thermal coal is approaching its end, with non-electric terminals starting staggered production, but downstream infrastructure consumption is weak. Non-electric demand consumption has marginal increments, but the demand volume is not significant. Anhui Hengyuan Coal Industry and Electricity Power stated that the coal market supply and demand tend to be loose, with prices under pressure, showing a 'not prosperous during the peak season' trend. According to the China Coal Industry Association's forecast, influenced by multiple factors such as production volume, import volume, and energy consumption structure upgrades, in the second half of the year, China's coal market supply and demand relationship overall is loose, and the coal market will continue the weakening trend from the first half of the year. However, long-term contract mechanisms and improved downstream demand provide some support to the coal market.

Some industry insiders told Cailian Press reporters that overall consumption of new energy and hydroelectric power is good this year, and the substitution effect of hydroelectric power and new energy is more apparent in downstream consumption, so the daily consumption of thermal power is not very ideal.