Upgrades pay off at coal mine
Yanzhou Coal Mining's unaudited net profit has risen 19.6 per cent to 445.5 million yuan (about HK$413.8 million) in the first half of the year over the same period last year despite a fall in coal prices.
Executive director Luo Taiyan attributed the profit to expansion in the sales network and production capacity, technological upgrades and government policies.
The company's coal production increased 31.6 per cent to 11.98 million tonnes.
Net sales edged up 3.1 per cent to 1.86 billion yuan.
The domestic price of coal fell 2 per cent due to oversupply whereas the cost of exported coal dropped 3.7 per cent.
Coal exports account for 30 per cent of sales volume and 35 per cent of income.
Mr Luo said the government measures to boost exports, and policies to reduce oversupply would further enhance profitability in the second half.
In April, the government raised the rebate rate for coal exports from 9 per cent to 13 per cent and cut or exempted various fees for administration, coal handling and transportation.
Mr Luo said these measures could save about 40 million yuan in the second half.
Earnings per share is 0.17 yuan compared with 0.14 yuan over the same period last year.
No interim dividend was declared.
Meanwhile, the government has tried to reduce oversupply by closing about 23,000 small or inefficient coal mines in the first six months.