Source of this article: Times Weekly Author: Guo Peng
Tang Junhua, chairman of Jinkong Coal Industry (601001.sh), was investigated five days after his resignation. On June 21, the website of the Central Commission for Discipline Inspection and the National Supervisory Commission announced that according to the Shanxi Provincial Commission for Discipline Inspection and Supervision, Tang Junhua, member of the Standing Committee of the Party Committee and Deputy General Manager of Jinneng Holding Group Co., Ltd., is suspected of serious violations of discipline and law and is currently undergoing disciplinary review by the Shanxi Provincial Commission for Discipline Inspection and Supervision. and supervisory investigations.
Jinneng Holding Group was established on September 30, 2020, and was formed by the joint reorganization of the original Tongmei Group, Jinneng Coal Group and Jinneng Group. Jinneng Holding Coal Group Co., Ltd., a subsidiary of Jinneng Holding Group, is the controlling shareholder of Jinneng Coal, with a shareholding ratio of 57.46%.
On October 28, 2023, Tang Junhua served as chairman of Jinkong Coal Industry. On the evening of June 16, 2024, the company issued an announcement that Tang Junhua applied to resign as chairman and director of the company due to personal reasons, as well as director of the strategy committee and member of the nomination committee of the board of directors. Vice Chairman Gu Jingxuan acts as chairman of the company.
Jinkong Coal's main business is coal production and sales. It was formerly known as Datong Coal Industry and was listed in June 2006. In October 2020, the Shanxi Provincial Party Committee promoted the joint reorganization of three provincial coal enterprises, Tongmei Group, Shanxi Jincheng Anthracite Mining Group Co., Ltd., and Jinneng Group Co., Ltd., and simultaneously integrated Shanxi Lu'an Mining (Group) Co., Ltd., Hua The relevant assets of Yang New Material Technology Group Co., Ltd. and the reformed China (Taiyuan) Coal Trading Center were established to establish Jinneng Holding Group Co., Ltd.
Therefore, the name of Tongmei Group, the controlling shareholder of Datong Coal, was changed to Jinneng Holding Coal Group Co., Ltd. At the end of 2020, Datong Coal Industry changed its current name to Jinkong Coal Industry.
It is worth mentioning that since 2019, Jinkong Coal has changed its chairman of the board many times. Within 5 years, 6 people, Zhang Youxi, Wu Wangguo, Cui Jianjun, Wang Cunquan, Li Xuehui, and Tang Junhua, have successively served as chairman of the company.
Image source: Tuchong Creative
Jinkong Coal Industry is a coal energy giant, and the company's performance trend is highly related to the coal cycle.
According to Kaiyuan Securities Research Report, in the past 20 years, the domestic coal industry has been roughly divided into four stages. From 2003 to 2011, coal demand drove the expansion of production capacity, which was called the "golden decade"; from 2012 to 2015, the coal industry suffered from severe oversupply and the industry entered a "difficult moment"; from 2016 to 2020, the supply side of the coal industry Reform and elimination of backward production capacity will bring the industry back on track. From 2021 to 2023, demand will recover after the epidemic normalizes, and coal "guaranteed supply and stable price" will continue to advance.
Jinkong Coal Industry’s performance trend is in line with the industry. From 2004 to 2012, the company's revenue increased year by year, reaching its peak in 2012, with revenue reaching 17.28 billion yuan. In 2013, affected by the economic downturn and market downturn, the company faced its most difficult year since its establishment. Revenue dropped sharply and it suffered its first loss, with a net loss of 1.4 billion yuan.
From 2014 to 2015, the company's revenue gradually decreased. In 2016, coal prices stabilized and rebounded, Jinkong Coal Industry's performance recovered, and revenue stopped falling and turned to increase. The revenue scale was 7.391 billion yuan, a year-on-year increase of 3.69%. From 2017 to 2020, Jinkong Coal Industry’s revenue maintained growth, but the revenue scale did not exceed that of 2012.
In 2021, domestic coal prices will rise, and the performance of Jinkong Coal Industry will also rise sharply. That year, the annual average price of medium- and long-term thermal coal contracts (5,500 kcal thermal coal) was 648 yuan/ton, a year-on-year increase of 105 yuan/ton. Jinkong Coal's revenue reached 18.265 billion yuan, a year-on-year increase of 67.49%, creating the highest revenue since the company's listing. Net profit was 4.658 billion yuan, a year-on-year increase of 431.88%.
After revenue reached a record high, Jinkong Coal Industry’s revenue has turned to decline since 2022. In 2022, the company's revenue will be 16.082 billion yuan, a year-on-year decrease of 11.95%. In 2023, Jinkong Coal's revenue will be 15.342 billion yuan, a year-on-year decrease of 4.60%, and its net profit will be 3.3 billion yuan, a year-on-year increase of 8.27%. In the first quarter of this year, Jinkong Coal's revenue was 3.658 billion yuan, a year-on-year decrease of 1.53%, and its net profit was 780 million yuan, a year-on-year increase of 9.77%.
This year, Jinkong Coal Industry has attracted new investment institutions and even foreign investment institutions to take shares. According to the first quarter financial report of 2024, the Monetary Authority of Macau and the Kuwait Government Investment Authority have become the company’s top ten shareholders.The Monetary Authority of Macau holds 13.2048 million shares, accounting for 0.79%, and the Kuwait Government Investment Authority holds 10.8352 million shares, accounting for 0.65%.
According to wind data, since its listing, Jinkong Coal has paid dividends 11 times, with a cumulative dividend scale of 4.819 billion yuan.
