Lu'an Green Energy Co., Ltd., a leading coal producer in northern China's Shanxi province, announced notable declines in both net profit and revenue in 2023.

The company's net profit attributed to shareholders tumbled 44.11% year on year to 7.92 billion yuan ($1.09 billion) in 2023. Operating revenue fell 20.55% from a year ago to 43.14 billion yuan, the company said its annual report lately.

The considerable drops were mainly attributed to slumped coal prices in 2023. Steady increase in coal production and sales failed to offset the impact of lower prices. Coking business also suffered large losses, it said.

The coal industry would continue to face challenges, including tightened safety and environmental inspections, weak growth in newly-added production capacity and rapid growth of coal imports, the annual report said.

Limited coal demand from steel and power sectors may further press down coal prices of medium- and long-term contracts, it pointed out.

Over January-March 2024, Lu'an Green Energy produced 13.24 million tonnes of raw coal, falling 9.93% on the year. Its commercial sales declined 7.08% year on year to 11.81 million tonnes, with the average selling price down 20.69% to 689.42 yuan/t, according to the company's latest quarterly report.

In 2024, Lu'an Green Energy aims to maintain coal production at the level of 50 million tonnes, compared to 60.46 million tonnes in 2023. That means a drop of some 17.3% this year.

(Writing by yan.sun  Editing by Alex Guo)
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