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Energy Minerals

China Shenhua Energy Co. Ltd.

  • 15.36 HKD
  • -0.40
  • -2.54%
  • China
    Aug 16, 2019
  • Ticker
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  • Market cap (HKD)
  • Market cap (USD)
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Company Background

China Shenhua Energy is a Chinese state-owned coal company, which handles the mining, production and transport of coal as well as power generation. Besides coal mines and power plants, the company also runs railways and ports to transport coal. In size it is one of the largest companies in China, and is one of the world's largest coal firms. Its output and capital investment are widely monitored in and outside China as important indicators of the Chinese economy.

The company was established in 2004, and its parent firm is Shenhua Group, a large enterprise under direct control of the government. The company's actions tend to reflect government policies. The Chinese Communist Party has the power to pick the company's top officials.

Environmental protection is a major challenge facing the company. China relies on coal for 70% of the electricity it generetes, but coal is also a key source of air pollution. Against this backdrop, China Shenhua Energy is under pressure to introduce state-of-the-art power facilities, including ultrasupercritical power generation systems and integrated coal gasification combined cycle systems, so costs will likely increase in the short term. The company must brace itself for lower coal demand, as the Chinese government aims to reduce dependence on coal-fired power generation over the medium and long term.

China Shenhua Energy regards chemicals as a new source of revenue. It is already producing polyethylene and polypropylene. The company aims to complement its coal business, which is vulnerable to price fluctuations, by nurturing a high-end chemicals business.

Business Summary

China Shenhua Energy Co., Ltd. engages in the production and sale of coal and electricity. It operates through the following business segments: Coal, Power, Railway, Port, and Shipping. The Coal segment includes the production and sale of coal as well as the operation of coal mines. The Power segment includes the generation and sale of power and electricity. The Railway segment includes the operation of transportation railways for coal and non-coal commodities. The Port segment provides logistics and vessels for coal and non-coal cargo. The Shipping segment includes self-operated vessel management and allocation for coal distribution. The company was founded on November 8, 2004 and is headquartered in Beijing, China.

Financial Highlights

Dec 2018 HKDUSD
Gross Profit115,610.99M14,750.91M
Operating income91,275.20M11,645.89M
Income before tax82,462.86M10,521.51M
Net income51,958.43M6,629.42M
Diluted EPS2.610.33
Dividends Per Share1.030.13
Total Assets670,144.55M85,593.89M
Total liabilities208,927.11M26,685.11M
Total equity373,766.87M47,739.19M
Operating cash flow106,494.24M13,587.70M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 307,470.08M 211,216.29M 205,881.18M 275,709.99M 300,908.14M
Gross Profit 101,105.22M 73,879.32M 75,336.12M 108,619.63M 115,610.99M
Operating income 78,189.92M 50,344.51M 53,783.47M 85,597.09M 91,275.20M
Income before tax 74,031.73M 40,278.07M 45,169.89M 80,484.31M 82,462.86M
Net income 46,322.69M 19,913.31M 26,537.12M 51,931.57M 51,958.43M
EBITDA 105,017.99M 79,485.49M 81,761.25M 113,991.86M 119,209.36M
Diluted EPS 2.32 1.00 1.33 2.61 2.61
Dividends Per Share 0.93 0.37 0.52 1.12 1.03
Total Assets 665,732.12M 661,160.50M 637,772.03M 680,801.35M 670,144.55M
Total liabilities 221,206.97M 233,698.00M 213,935.39M 231,082.12M 208,927.11M
Total equity 364,144.20M 349,446.59M 348,478.40M 361,918.66M 373,766.87M
Operating cash flow 86,484.88M 69,451.12M 96,954.19M 111,875.94M 106,494.24M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 39,649.60M 27,244.66M 26,522.68M 35,380.01M 38,393.16M
Gross Profit 13,037.95M 9,529.65M 9,705.18M 13,938.42M 14,750.91M
Operating income 10,082.93M 6,493.91M 6,928.66M 10,984.10M 11,645.89M
Income before tax 9,546.71M 5,195.44M 5,819.01M 10,328.01M 10,521.51M
Net income 5,973.51M 2,568.60M 3,418.64M 6,664.03M 6,629.42M
EBITDA 13,542.52M 10,252.78M 10,532.90M 14,627.81M 15,210.03M
Diluted EPS 0.30 0.12 0.17 0.33 0.33
Dividends Per Share 0.12 0.04 0.06 0.14 0.13
Total Assets 85,847.19M 85,309.37M 82,259.72M 87,089.06M 85,593.89M
Total liabilities 28,524.98M 30,153.99M 27,593.35M 29,560.34M 26,685.11M
Total equity 46,956.96M 45,089.00M 44,946.68M 46,297.14M 47,739.19M
Operating cash flow 11,152.60M 8,958.46M 12,490.14M 14,356.29M 13,587.70M

Valuation Measures

Dec 2018
Operating margin30.33%
Profit margin17.26%

Key executives

  • Chief Financial Officer: Shan Cheng Xu
  • Executive Director & Senior Vice President: Dong Li
  • Senior Vice President: Jin Li Wang
  • Securities Representative: Guang Shui Chen
  • Board Secretary: Qing Huang


  • The Vanguard Group, Inc. (3.6%)
  • BlackRock Fund Advisors (2.8%)
  • Lazard Asset Management LLC (1.3%)
  • Dimensional Fund Advisors LP (1.3%)
  • Investec Asset Management Ltd. (1.2%)
  • FIL Investment Management (Hong Kong) Ltd. (1.1%)
  • Merian Global Investors (UK) Ltd. (1.0%)
  • Bessemer Investment Management LLC (1.0%)
  • State Street Global Advisors Asia Ltd. (0.9%)
  • Hang Seng Investment Management Ltd. (0.8%)

Contact Details

  • Website:
  • Address: 22 Binhe Road, Andingmen West, Beijing, 100011, China
  • Phone: +86.10.5813.3399

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Last Updated on 16 Aug, 2019

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