Higher sales, prices boost China Coal profit
China Coal Energy has unveiled a 1.33 billion yuan acquisition as it posted a 35.88 per cent year-on-year net profit growth in the first quarter, thanks to higher sales volume and prices.
The country's second-biggest coal miner also said it bought 100 per cent of China Coal Shanxi Dongpo Coal from a unit of its parent to tap the nation's rising energy demand.
Net profit amounted to 1.41 billion yuan (HK$1.57 billion) in the three months to March, up from 1.04 billion yuan a year earlier, based on mainland accounting standards.
The profit included a 641.6 million yuan mark-to-market holding loss for its China Cosco A shares, whose value fell 37.6 per cent during the period. Excluding the loss, net profit would have doubled to 2.05 billion yuan.
China Coal earlier this month announced a 90 per cent jump in net profit for last year to 6.02 billion yuan, thanks partly to a 1.36 billion yuan gain from a rise in value of 40 million China Cosco A shares.
The shares' lock-up period will expire on June 19.
Turnover grew 39 per cent to 11.26 billion thanks to increased output and rising coal prices.
Operating profit margin edged up to 17.06 per cent from 16.19 per cent.