China Coal Xinji Energy Co., Ltd. is projected to achieve 1.155 billion yuan ($178.40 million) of net profit in the first half of 2021, surging 11 times year on year, the company stated recently.
Its operating income is expected to grow 42.44% from the year before to 5.213 billion yuan.
The considerable profit growth was mainly thanks to rising sales volumes and prices but falling unit cost of commercial coal.
In coal mining segment, Xinji Energy churned out 9.68 million tonnes of raw coal during January-June, increasing 9.23% from the year-ago level. Its commercial coal output climbed up 13.68% year on year to 8.54 million tonnes, and sales rose 21.18% year on year to 8.54 million tonnes, data showed.
The company's revenue from coal sales hit 4.5 billion yuan in the first half of 2021, a year-on-year increase of 52.78%, of which revenue from external coal sales was 3.4 billion yuan, jumping 57% on the year. Gross profit of coal sales surged 139% from the previous year to 2.1 billion yuan in January-June.
In power segment, Xinji Energy generated 4.839 TWh of electricity in the first half of the year and 4.593 TWh was connected to the grid, both up about 11% year on year. The average on-grid electricity price was 0.33 yuan/KWh, 3.34% higher over the same period last year.
Xinji Energy has four operating mines with total production capacity of 20.5 million tonnes per year, and a new mine with approved capacity of 3 million tonnes per year is under construction. It has 10.16 billion tonnes of resource reserves, accounting for about 40% of the total resource reserves of the four major coal producers in eastern China's Anhui province.
(Writing by Shengnan Liu Editing by Emma Yang)
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