China Shenhua's first three-quarter revenue breakthrough

October 30, China Shenhua Energy Co., Ltd. (601088), the largest coal mining and selling company. SH/01088.HK, hereinafter referred to as "China Shenhua", reported the third quarter of 2010, with its operating income of 110.013 billion yuan in the first three quarters, up nearly one-fourth from a year earlier.　　Companies in the first three quarters on schedule to complete the business objectives and a breakthrough, mainly due to the company's coal sales structure adjustment, at the same time, the comprehensive coal price chain increase also brought a considerable benefit.　　During the reporting period, the company produced 166.2 million tonnes of commodity coal, an increase of nearly 5% over a year earlier, and a 72.6% per cent annual operating target, with coal sales reaching 213 million tonnes and nearly 80% of the annual operating target, up 12.3% from a year earlier. With the rise of China's coal prices and the increase in the price chain, the company implemented the effect of coal sales structure adjustment. The company's third-quarter comprehensive coal sales price of 425.4 yuan/ton, more than half a year average price of 421.8 yuan/ton. National Gold Securities researcher Shengzheng that the main reason is the adjustment of the spot sales ratio.　　From the breakdown of sales structure, the company's first three quarters of the contract sales were reduced by nearly 14% over a year earlier, while the company allocated this share to the spot coal sales. From the price of coal, the domestic long-term contract sales price structure to maintain stability, and spot coal prices have been greatly improved.　　Spot sales of the lower and middle water coal sales price increased by 26.4% to 586.6 yuan/ton, therefore, the company raised the spot coal sales ratio, but also slightly raised the spot coal sales ratio, from two quarters of 22.5% rose to three quarter of 23.2%. For China Shenhua "five-type" integration strategy indispensable to the non-coal business, the company strives to ensure that its overall business operation Smooth. At the same time, the shipping business starts and forms during the reporting period. The first three quarters of the implementation of its own railway transport turnover 111.4 billion tons kilometers, up 8.6% per cent year-on-year. The amount of coal in the port has achieved 124 million tons, an increase of 2.9%.　　The value of a mention is that the shipping business and the table, so that the reporting period to achieve a cumulative 11.6 billion tons of sea shipping turnover. In addition, the company's operating costs continued to rise slightly in the three quarter, mainly due to the recognition of artificial wages and haerwusu mine increased stripping volume driven by the rise in the cost of coal. Although the company's operating costs have increased, but the overall level of revenue has little impact.　　The company expects that the fourth quarter domestic demand for power coal, power coal spot price rise, winter heating coal will drive demand for power coal, while the national energy conservation policy will limit the growth of demand. (Stock market Weekly feeds)