China's coal producer reports 28.3% net profit rise in 2021

China Shenhua Energy posts a 28.3-percent rise in net profit in 2021. (Photo: CFP)

China's biggest listed coal producer, China Shenhua Energy, posted a 28.3-percent rise in net profit in 2021, due to a growing demand in the coal market, reversing a declining trend for the past three years from 2018 to 2020.

Revenue surged 43.7 percent to 335.2 billion yuan ($52.7 billion) in 2021, the company said on Friday. In 2021, the domestic coal prices rose sharply due to strong market demand.

The company's second largest source of revenue is power generation, with a revenue of 64.12 billion yuan in 2021, a year-on-year increase of 55.3 percent.

The company predicted that the coal market will gradually stabilize in 2022, and the coal price increase will slow down. The company's coal production and sales will also shrink from the previous year.

As for expenditure plan, the company will mainly put its investment on new energy business. In 2022, the company's new energy business expenditure is set at 5.02 billion yuan, a 151-fold increase compared to that in 2021.

China Shenhua is a subsidiary of National Energy Investment Group.