Yankuang Energy Group Co., Ltd., a major state-owned mining group in China, earned a net profit of 20.14 billion yuan ($2.79 billion) in 2023, slumping 39.62% from last year, according to the company's annual performance report.

This aligned with a 30.1% fall in its coal sales revenue, which came in at 43.97 billion yuan, accounting for 67.9% in Yankuang's total income.

Declines in coal revenue and profit stemmed from a substantial price decrease compared with 2022. The report noted all coal products posted corrections in sales prices, other than semi hard coking coal produced from overseas subsidiary Yancoal Australia. Notably, thermal coal products from Yancoal Australia saw the largest price fall among all, plunging from 1,600.58 yuan/t to 957.56 yuan/t.

In 2023, the group sold 127 million tonnes of commercial coal, dipping 6.21% on the year. There was 95.28% of the volume, or 121 million tonnes, produced from its own mines, which exceeded the scheduled 103 million tonnes.

As for production, the group produced 132 million tonnes of commercial coal last year, marking only a 0.61% rise, the annual report showed.

Yankuang launched 59 new intelligent longwalls in 2023, raising the share of intelligent mining to 94% in terms of capacity. It also achieved mineral exploration right of a coal mine in Inner Mongolia last year and acquired two mining companies, collectively adding new coal resources of 2.66 million tonnes.

Additionally, the company made efforts to improve its logistics systems, boosting its shipping capacity to 300 million tonnes per annum.

The company expected a rough balance between supply and demand in China this year, with prices fluctuating close or above the average in normal years.

In 2024, the group aims to produce 140 million tonnes of commercial coal, the report said.

(Writing by yan.sun  Editing by Alex Guo)
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