On August 29, China Shenhua Energy Company Limited released its semi-annual performance report for 2025. The report shows that the company achieved a net profit attributable to equity shareholders of the parent of RMB 24.6 billion in the first half of the year, with basic earnings per share of RMB 1.24 and net cash flow from operating activities of RMB 45.8 billion. Despite a challenging market environment characterized by declining volume and price in the coal-generated power sector, the company’s operating gross profit margin increased by 2.9 percentage points against the trend, demonstrating relatively stable operational performance.
In the first half of the year, China’s coal supply remained generally ample, and price benchmarks declined. According to data from the National Bureau of Statistics, the total profits of large-scale coal mining and washing enterprises fell by 53.0% year-on-year from January to June. In contrast, China Shenhua Energy reported a total profit of RMB 37.602 billion, a year-on-year decrease of only 8.6%, significantly outperforming the industry average.
A closer look at operational data reveals that the average selling price of the company’s self-produced coal decreased by 9.3% year-on-year to RMB 478 per ton. However, the gross profit margin for self-produced coal sales declined by only 1.3 percentage points, indicating relative stability in coal business profits. Compared with the first quarter, the decline in the company’s key production and operation metrics narrowed significantly: the year-on-year decrease in coal sales volume narrowed from 15.3% to 10.9%, total power generation declined from 10.7% to 7.4%, self-operated railway transportation turnover decreased from 11.6% to 5.3%, and net profit contraction moderated from 18% to 12%.
Additionally, the company’s coal conversion business delivered strong results. In the first half of the year, olefin product sales reached 354.6 thousand tons, a year-on-year increase of 23.4%, which helped partially alleviate pressure from insufficient upstream demand growth.
Shenhua’s integrated and synergized operational model has demonstrated strong resilience against market risks and cyclical fluctuations, according to a representative from the company. In the second half of the year, with policy measures expected to stimulate energy demand, coupled with seasonal factors such as peak summer and winter electricity consumption and increased coal demand from non-power sectors, the coal market is likely to stabilize, and the company’s performance is anticipated to show further improvement.
