Shanxi's Super Seven SOE Coal Groups Suffered Less Last Year, but Their Big Burdens Are Unbudged
Gao Ge
/SOURCE : Yicai
Shanxi's Super Seven SOE Coal Groups Suffered Less Last Year, but Their Big Burdens Are Unbudged

(Yicai Global) July 18 -- The big-seven stated-owned coal groups in north-central Shanxi province saw their total operating revenue fall by more than 10 percent last year, but losses saw a nearly 40-percent drop, statistical analysis showed based on the groups' recently-released 2016 financial reports and other key information.

Shanxi's big-seven state-owned coal groups include Datong Coal Mine Group Co., Shanxi Coking Coal Group Co. [SHA:600740], Shanxi Jinneng Group Co., Shanxi Lu'an Mining (Group) Co., Shanxi Jincheng Anthracite Mining Group Co., Yangquan Coal Industry Group Co. [SHA:600348] and Shanxi Coal Import & Export Group Co.

These big-seven coal groups in Shanxi province made a total operating revenue of USD137.7 billion (CNY936.504 billion) last year, down 14 annual percentage points. With net profits, they sustained cumulative losses of CNY3.46 billion, down 38 percent yearly.

The seven coal groups' combined assets totaled CNY1.5 trillion by the end of last year, accompanied by liabilities of about USD1.26 trillion. The aggregate asset-liability ratio reached 82.6 percent, up by 0.42 percent over 2015.

Of these seven groups, only Shanxi Coking Coal Group and Jinneng Group kept their debt ratio below 80 percent -- about 78 percent -- while the other five groups' ratios were higher than 80 percent.

"Compared with private enterprises, Shanxi's state-owned coal enterprises face many problems, including the main ones of staff lay-offs, heavy enterprise burdens, the social services functions state-run enterprises assume, high costs of financing and high financing expenditures. Also, many taxes and fees also soak up corporate profits, noted Xing Lei, director of Listed Coal Group Research Center in the China Coal Economy Research Institute of the Central University of Finance and Economics."

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Keywords: Coal , Shanxi , Debt , Excess Capacity