On April 1, China Shenhua Energy Co., Ltd. (China Shenhua, 601088), a leading coal stock, stated at the 2021 performance briefing that it plans to achieve coal sales of about 403 million tons in 2022, a year-on-year decrease of 79.4 million tons, of which purchased coal The sales volume was 105 million tons, a year-on-year decrease of 38%, about 64.5 million tons; the power generation was 180.5 billion kWh, an increase of 8.4% year-on-year, of which coal-fired power generation was 176 billion kWh, a year-on-year increase of 8.7%. 
Image source: Shanghai Stock Exchange Roadshow Center China Shenhua 2021 Annual Results Briefing PPT
Lv Zhiren, General Manager and Deputy Secretary of the Party Committee of China Shenhua, said that outsourcing will be carried out in 2022 The coal business volume declined. First, the state vigorously promoted the full coverage of coal supply contracts for power generation and heating, and the state-owned coal mines in the main production areas of Shanxi, Shaanxi and Mongolia fulfilled the guaranteed supply, and the total amount of recoverable resources in the market decreased. Second, the company’s coal purchase price was implemented According to the relevant national price supervision policies, the company will comprehensively consider the supervision policies and market prices to organize the coal purchase business. The gross profit per ton of coal purchased from outside is relatively low, and the decline in business volume has limited impact on the company’s total profit.
At the performance briefing, China Shenhua estimated that the company’s commercial coal output in 2022 would be 298 million tons. Compared with the 307 million tons in 2021, the main reduction mines are Shendong and Zhuneng, and the incremental mines are Shenbao and Victory. From January to February 2022, the company achieved a commercial coal output of 53 million tons, a year-on-year increase of 1.9%. Some of the company’s coal mines are applying for production capacity verification procedures. After obtaining the verification capacity increase, the corresponding production increase can be arranged. The current time is uncertain.
Lv Zhiren said that in 2022, the company’s self-produced coal unit production cost increase will be controlled at about 10%. In 2021, the unit production cost of self-produced coal will be 155.5 yuan/ton, an increase of 20.9%. Disregarding the impact of maintenance security fees, this figure would have been 7.4% under IFRS.
China Shenhua stated that in 2021, the average selling price of coal-fired power generation in China Shenhua will be 343 yuan/MWh, a year-on-year increase of 6 yuan/MWh. up 15%. Last year, China Shenhua’s internal power plants consumed a total of 71.4 million tons of coal, of which China Shenhua consumed 59.8 million tons of coal, accounting for 83.8% of the total coal consumption, a year-on-year increase of 1.2%.
Regarding the intelligent development of coal mines, Lv Zhiren said that the company plans to realize the intelligentization of all the company’s coal mines by 2025. In 2022, realize the full coverage of the intelligent construction of coal mines; the coal mining and tunneling face of underground coal mines will be fully realized. Intelligent; all fixed underground positions are unattended; all coal preparation plants are intelligent; the “3507” goal of intelligent mine construction is realized, that is, 3 people work on the intelligent coal mining face, 5 people work on the intelligent excavation face, fixed All posts are unattended, and the efficiency of all employees reaches more than 70 tons/worker. (Intelligent mines are divided into three levels: high, middle and junior according to the group standard, and the specific indicators are different)
During the “14th Five-Year Plan” period, China Shenhua plans to increase the installed capacity of new energy by no less than 600,000 kilowatts every year.
Image source: Shanghai Stock Exchange Roadshow Center China Shenhua 2021 annual performance briefing PPT
China Shenhua executive director, party secretary and deputy general manager Xu Mingjun said that the company’s capital expenditure plan in 2022 is 32.6 billion yuan, mainly for Guangxi Beihai Power Plant and Terminal, Guangdong Qingyuan Power Plant, Hunan Yueyang Power Plant and other new projects, coal and power plant technical renovation expenditures, transportation equipment purchase, railway station renovation and informatization construction, etc. Among them, the new energy project plans to invest 5 billion yuan, mainly for the photovoltaic power generation project of Shengli Energy’s open-air dump site, and Distributed photovoltaic power generation and other projects.
“The characteristics of my country’s coal-dominated energy resource endowment determine that coal is still an important basic energy source in the energy supply system at present and for a period of time in the future. Clean and efficient utilization of coal is one of the important aspects of China’s realization of the dual-carbon goal.” Lv Zhiren said that China Shenhua will focus on building clean and efficient coal-fired power units, actively promote energy-saving and efficiency-improving transformation of existing coal-fired power units, and refine and optimize coal power business. In 2021, the standard coal consumption of the company’s coal-fired units for power supply will be 301 g/kWh, a year-on-year decrease of 6 g/kWh. In addition, the company will vigorously promote research on clean coal production, modern coal chemical technology, and carbon dioxide capture and utilization.
China Shenhua’s 2021 annual report shows that the company achieved revenue of 335.216 billion yuan during the reporting period, a year-on-year increase of 43.7%; net profit attributable to the parent was 50.269 billion yuan, a year-on-year increase of 28.3%. In 2019, China Shenhua produced 310 million tons of coal, a year-on-year increase of 5.3%; coal sales volume was 480 million tons, an increase of 8.0% year-on-year; and power generation was 166.45 billion kWh.
As of At the close on April 1, China Shenhua closed at 29.53 yuan per share, with a total market value of 586.717 billion yuan.