Zhengzhou Coal Industry profit plunges as coal prices fall

Zhengzhou Coal Industry & Electric Power Co., Ltd. (ZCE) reported a net loss of RMB 223.95 million for the first half of 2025, a substantial decrease compared to a profit of RMB 10.38 million in the prior year. This decline was primarily attributed to a significant drop in coal sales prices, which reduced coal revenue by RMB 2.55 billion.

Despite these challenges, the company's total assets saw a slight increase of 0.59% to RMB 14.04 billion. Operating revenue for the period was RMB 1.83 billion, down 15.01% from the previous year. The company also disclosed financing lease transactions, with an agreement to conduct a sale-leaseback transaction for certain equipment. The financing amount will not exceed RMB 50 million, and the lease term will be three years, aiming to revitalize assets and meet funding needs.

The company's operational activities generated a net cash flow of RMB 60.89 million, a decrease of 71.19%. The board emphasizes the importance of strict cost control and optimizing production efficiency to mitigate the impact of market fluctuations and complex geological conditions.