china Coal and steel companies' performance in 2017 will be overturned

After a few years away, the strong cycle is still the king. In 2017, when coal steel prices soared, a group of "losing kings" who had been silent for a long time were able to turn over.

Yuxi loses a new net profit

On April 11th, *ST Dayou and *ST Zheng Coal successively announced that the company's stock will cancel the delisting risk warning on April 12, 2018, with the stock abbreviation becoming Big Energy, Zhengzhou Coal & Electricity.

Dayou Energy is under the jurisdiction of Henan Energy and Chemical Industry Group Co., Ltd. (hereinafter referred to as “Henan Nenghua”) and Zhengzhou Coal and Electricity is the controlling shareholder of Zhengzhou Coal Industry (Group) Co., Ltd. (hereinafter referred to as “Zheng Coal Group”). The controlling persons are Henan SASAC.

In recent years, Great Energy and Zhengzhou Coal and Electricity have been regular visitors to the black list of Henan's capital market performance.

In 2016, Dayou Energy was the loss-making king of more than 70 Yuyang-listed companies with a loss of 1.963 billion yuan. In 2015, the company’s annual net profit also lost 1.288 billion yuan, which was finally released in March 2017. Star hat.

Similarly, as a state-owned enterprise in the coal mining and washing industry in Henan, Zhengzhou Coal & Electricity posted losses of 544 million yuan and 630 million yuan in 2015 and 2016, respectively, and was listed in the top five regional loss charts for two consecutive years. It was also ST in April 2017.

The black history of the coal industry finally turned in 2017 with the rise in coal prices.

In 2017, the quoted price of 1805 thermal coal in the domestic futures market increased from approximately 487 yuan/ton at the beginning of the year to approximately 644 yuan/ton in December of that year. During the period of May and June, there was a price correction, but the overall price rose sharply from previous years.

*ST Dayou 2017 annual report shows that the company achieved operating revenue of 6.834 billion yuan in 2017, an increase of 31.91% over the same period of last year, and net profit of 480 million yuan. The company said that due to the improvement of the coal market situation, the company moderately expanded production with a commercial coal output of 14.9162 million tons, an increase of 2.458 million tons, an increase of 19.66%, and a commercial coal sales of 16.196 million tons, an increase of 1.5596 million tons, an increase of 10.66%.

*ST Zheng Coal also attributed its profitability to the rise in coal prices. The company's annual report shows that in 2017, operating income was 5.712 billion yuan, a year-on-year decrease of 39.83%, but net profit was 627 million yuan. During the period, the company achieved a coal production of 9.215 million tons and a power generation of 300 million kwh. The gross margin of the coal sector reached 48.95%, an increase of 9.8% from the previous year.

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