Several Chinese coal enterprises have announced their performance for the first half of the year, showing a projected decrease of over 20% in net profit attributable to shareholders for many coal companies, with nearly half of them expected to incur losses.
On July 15, Yongtai Energy Group Co., Ltd. stated in its “2025 Interim Performance Forecast” that the company anticipates achieving a net profit attributable to shareholders of the listed company ranging from 120 million to 150 million yuan for the first half of 2025, a decrease of 89.91% to 87.39% compared to the same period last year. The net profit attributable to shareholders after deducting non-recurring gains and losses is expected to be in the range of 90 million to 120 million yuan, a decrease of 91.91% to 89.21% compared to the same period last year.
Yongtai Energy attributed the losses to the continuous downward trend in the overall market prices of coking coal products in the coal business sector.
Similarly, Henan Dayou Energy Co., Ltd., which also released its semi-annual financial report on the 15th, projected a net profit attributable to the parent company owner of -820 million yuan for the first half of 2025, an increase in loss of 33,012.16 million yuan compared to the same period last year. The net profit after deducting non-recurring gains and losses is expected to be -826.32 million yuan, an increase in loss of 34,049.14 million yuan compared to the same period last year.
Dayou Energy attributed the losses mainly to market supply and demand dynamics, with a significant decrease in coal prices leading to a roughly 29% year-on-year decline in the average selling price of commercial coal and a decrease of approximately 746 million yuan in coal sales revenue, resulting in an increased loss in the period.
On July 14, leading coal enterprise China Shenhua Energy Co., Ltd. released its “2025 Interim Performance Forecast,” stating that it expects to achieve a net profit attributable to the company’s shareholders of 23.6 billion to 25.6 billion yuan for the first half of 2025. This represents a decrease of 3.9 billion to 5.9 billion yuan, a decline of 13.2% to 20.0% compared to the same period last year. The net profit after deducting non-recurring gains and losses is projected to be 23.3 billion to 25.3 billion yuan, a decrease of 4.2 billion to 6.2 billion yuan, a decline of 14.2% to 21.0%. The company cited a decrease in coal sales volume and average selling price resulting in a decline in profits in its coal division.
The Chinese coal market has seen a significant decline in prices this year. According to data from the China National Coal Association, starting from mid to late March, spot coal prices have been lower than long-term contract prices, and in June, the price fell below the price center (675 yuan/ton). On July 8, the Bohai Rim 5500 kcal power coal spot index was at 623 yuan per ton, a year-on-year decrease of 257 yuan. “First Financial” reported on July 15 that the continued downward trend has led to a total profit reduction of the coal industry in the first five months of the year to 126.4 billion yuan, a decrease of 50.6%, with a 53.6% industry-wide loss.
Industry experts attribute the current situation to an oversupply in the coal market, creating an imbalance in supply and demand. During the 2025 National Coal Trading Conference held in Ordos on July 10, Zhang Hong, a member of the Party Committee of the China National Coal Association, revealed that domestic coal production has increased from 3.41 billion tons in 2016 to 4.78 billion tons in 2024, representing an average annual growth rate of 4.31% over nine years. However, during the same period, the annual growth rate of coal consumption was only 1.79%.