Yun Coal Energy's net profit increased by more than 900% in the first three quarters, saying that it will carefully judge the development trend of coal prices

On the evening of October 27, Yunnan large coking enterprise Yun Coal Energy (600792. SH) released three quarterly reports.

In the first three quarters of this year, Yun Coal Energy achieved operating income of 4.364 billion yuan, an increase of 28.13% year-on-year; net profit attributable to the mother was 125 million yuan, an increase of 926.19% year-on-year. Yun Coal Energy said that the performance growth is mainly due to the impact of the epidemic in the previous period, the price of coke and chemical products fell, the gross profit was low, the market improved from January to September this year, the price of coke and chemical products rose, and profits increased.

The performance growth of Yun Coal Energy in the first three quarters was mainly driven by the performance of the first half of the year. In the single quarter of the third quarter, Yun Coal Energy achieved operating income of 1.628 billion yuan, an increase of 34.06% year-on-year; but the net profit attributable to the mother was 14.4064 million yuan, down 61.64% year-on-year. In this regard, Yunnan Coal Energy told Shell Financial Reporter on October 28 that in the third quarter, downstream steel enterprises were affected by the dual control policy of energy consumption, and the demand for downstream coal production as raw materials was also reduced, which made the company's raw material supply tight, in addition, the third quarter was the rainy season in Yunnan, which also had a certain impact on operations.

As of the end of the third quarter, Yunnan Coal Energy had a total of 5.909 billion yuan in assets and 2.300 billion yuan in liabilities.

Yun Coal Energy, one of the largest coking enterprises in Yunnan Province, achieved a backdoor listing in 2011, and the controlling shareholder is Kunming Iron and Steel Holdings Co., Ltd., which has a state-owned background. Yun Coal Energy is currently mainly engaged in coal coking business, the main business is to produce coke with coal as raw material, coke is mainly used for blast furnace ironmaking, is an important raw material in the steel industry second only to iron ore. In addition to the coal coking business, another heavy machinery segment of Yunmei Energy is undertaken by its wholly-owned subsidiary Kungang Heavy Equipment Group, which is mainly engaged in lifting and transportation machinery, mining and metallurgical equipment manufacturing, maintenance services and wear-resistant materials.

Shell financial reporter learned that relying on the steel business of the controlling shareholder Kungang Holdings, Yun Coal Energy has established a strategic cooperative relationship with Kunming Iron and Steel Co., Ltd. of Wuhan Iron and Steel Group, which is conducive to ensuring the sales of Cloud Coal Energy coke products and making it have a certain ability to resist market risks compared with other independent coking enterprises in the industry.

On October 21, Yun Coal Energy told Shell Financial Reporter that the company's main business is the production and sales of coke and related chemical products using coal as raw materials, and if the price of raw coal falls, as a raw material for the company's production, it may improve the company's procurement costs.

Regarding the NDRC's document clearly intending to take coal price intervention measures, Yun Coal Energy said that due to the country's entry into winter, the demand for coal continued to be strong, making the rise in coal prices a high probability event, superimposed on the recent NDRC, state-owned assets and related departments intensive landing of relevant supply and supply policies, the industry as a whole may usher in a stage of supply and demand. However, with the country's control and the rise of supply, the price of thermal coal, coke and other commodities is expected to return to rationality, the capital market or will appear a stage of decline, "the company will continue to pay attention to the development trend of the relevant situation, prudent research, market research and judgment as the premise, customer demand as the guide, benchmarking cost reduction as the starting point, around the annual production and operation goals to work hard."

Beijing News shell financial reporter Zhu Yueyi Editor Chen Li Proofreader Wei Zhuo

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