Yankuang Energy Announces 2022 Annual Results
- Written by Daily Sun
During the Year, the Group recorded sales income of RMB154.60 billion, representing a year-on-year increase of 42.3%. Gross profit reached RMB73.79 billion, up 84.8% year on year. Net profit attributable to shareholders of the Company amounted to RMB30.41 billion, a significant increase of 79.5% year on year. Basic earnings per share were RMB6.15. The board of directors proposed to distribute a final dividend of RMB30.7 per 10 shares (tax inclusive) and a special dividend of RMB12.3 per 10 shares (tax inclusive) for the year ended 31 December 2022. In addition, five bonus shares will be given for every 10 shares held.
In 2022, energy prices underwent noticeable fluctuations due to profound changes in the global energy landscape. The coal industry experienced a tight supply, with coal prices remaining at a medium-to-high level. During the Year, the Group sold a total of 103.75 million tonnes of salable coal, generating sales revenue of RMB125.84 billion, up 50.2% year on year, with a gross margin of 59.0%. The Group has made significant progress in the construction of intelligent coal mines. With an investment of RMB2 billion, the Group successfully built up 28 intelligent mining and working faces. Four coal mines, as the first batch of intelligent demonstration mines at the national level, passed the acceptance inspection. An array of capacity expansion and efficiency improvement projects were steadily implemented. As a result, the annual production capacity of Jinjitan Coal Mine was elevated to 17 million tonnes; the construction of Yingpangou Coal Mine was completed and the mine passed the acceptance inspection to officially become a production mine; and an ultra-long intelligent integrated mining face was successfully built at Zhuanlongwan Coal Mine, which is capable of producing 10 million tonnes of coal per year for the next 10 years. By fully exploiting the synergies between domestic and overseas markets, Yancoal Australia achieved a significant increase in profitability, with key performance indicators such as net profit and net cash from operating activities reaching new highs. In 2022, Yancoal Australia recorded sales revenue of AUD10.5 billion, a year-on-year increase of 95%, and a net profit of AUD3.6 billion, a year-on-year increase of 353%. Thanks to the outstanding performance of Yancoal Australia, the Group has received cumulative cash dividends of AUD2.2 billion and loan repayments of USD4.3 billion from Yancoal Australia as of 31 December 2022.
The coal chemicals business recorded sales revenue of RMB24.27 billion, up 13.4% year on year, with a gross margin of 13.1%. At Lunan Chemicals, the high-quality acetic anhydride and nylon-6 projects were completed and put into production, and the world's first set of acrylic acid production unit adopting the method of formaldehyde and acetic acid reacting was proved to be successful in the first trial. At Yulin Neng Hua, the 100,000 tonnes/year DMMn project entered the trial production stage, and the world's first opposite multi-nozzle gasifier with semi-waste heat boiler passed the site assessment. The Group has successfully expanded its high-end chemicals and new materials businesses along the industry value chain to create greater value.
Furthermore, the Group formulated and implemented a development plan for its new energy business, while stepping up its efforts to obtain the production quotas and advance project construction simultaneously. The first batch of more than 10 self-owned distributed photovoltaic and power storage projects has been implemented.
Looking into 2023, the external environment remains complex and challenging, and the macro economy faces intricate risks and challenges. However, China's economy demonstrates strong resilience and robust recovery momentum, providing solid support for the high-quality development of the energy industry. Although the transformation of the coal industry picks up pace, coal will continue to play an important role as the major energy source. In light of the tight global energy supply, the gradual release of advanced production capacity, and the growth of downstream demand, the coal industry is expected to witness an increase in both supply and demand in 2023, with coal prices fluctuating at medium-to-high levels. The Group will focus on the "green, low-carbon and high-quality development" approach, step up the transition from old to new growth drivers, accelerate business transformation and upgrading, improve the quality of operational management and control, and achieve new leapfrog growth to create greater returns for shareholders.
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About Yankuang Energy
Yankuang Energy is a large international energy company focusing on mining, high-end chemicals and new materials, new energy, high-end equipment manufacturing, and smart logistics. The Group is a well-known producer and seller of thermal coal and coking coal in China. Yancoal Australia, a subsidiary of the Group, is the largest coal producer in Australia. The Group owns several well-established coal chemical industry chains, including coal gasification and coal liquefaction, and also owns the largest single coal liquefaction unit in China. It is the only company in China that masters both low-temperature Fischer-Tropsch synthesis and high-temperature Fischer-Tropsch synthesis technologies. Its acetic acid production capacity ranks third in the industry.