en.Wedoany.com Reported - On June 8, China's coal sector showed active performance, with China Shenhua Energy Company Limited (stock code: 601088.SH/01088.HK) rising over 5% during the session to close at 50.76 yuan per share, hitting a new high since November 2007. The total market value of its A+H shares reached 1.1 trillion yuan, an increase of nearly 81.3 billion yuan from a week earlier. On the same day, other coal stocks such as Dayou Energy, Shaanxi Coal Industry, Haohua Energy, and China Coal Energy also followed the uptrend. The sharp rise in oil prices provided alternative support for coal prices: as of June 8, the New York Mercantile Exchange West Texas Intermediate crude oil futures price stood at $94.65 per barrel, while London Brent crude oil futures were at $97.50 per barrel.
China Shenhua was established on November 8, 2004, and is a flagship A+H-share listed company under State Energy Investment Group (hereinafter referred to as "State Energy Group"). Its H-shares and A-shares were listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange on June 15, 2005, and October 9, 2007, respectively. The company primarily operates in six major business segments: coal, power, coal chemical, railway, port, and shipping, adopting a vertically integrated operation model. As of the end of March 2026, the company's total assets amounted to 783.3 billion yuan, with a total workforce of 91,000 employees.
China Shenhua recently received approval from the Shanghai Stock Exchange to issue shares to raise supporting funds of no more than 20 billion yuan, to be used for asset acquisitions and strategic layout. On December 19, 2025, the company announced plans to acquire equity stakes in 12 target companies held by its controlling shareholder, State Energy Group, and its wholly-owned subsidiaries, through the issuance of A-shares and cash payment, with a transaction consideration of 133.598 billion yuan. The transaction was completed in March 2026, involving assets covering coal, pithead coal-fired power, coal chemical, shipping, and port business areas. After the acquisition, China Shenhua's coal recoverable reserves increased from 17.45 billion tons to 34.5 billion tons (up 97.7%), coal production rose from 327 million tons to 512 million tons (up 56.6%), installed power generation capacity grew from 47.6 GW to 60.9 GW (up 27.8%), and polyolefin production capacity expanded from 600,000 tons to 1.88 million tons (up 213.3%). The combined shareholding of State Energy Group and its concert parties was passively diluted from 71.53% to 70.02%, while the company's controlling shareholder and actual controller remained unchanged.
In terms of financial data, in 2025, China Shenhua achieved operating revenue of 294.92 billion yuan, a year-on-year decrease of 13.2%; net profit attributable to the parent company was 52.85 billion yuan, down 5.3% year-on-year. In the first quarter of 2026, the company's total operating revenue was 70.397 billion yuan, a slight increase of 1.17% year-on-year; net profit attributable to the parent company was 10.667 billion yuan, down 10.73% year-on-year, mainly dragged down by a dual decline in self-produced coal sales volume and prices. The annual dividend proposal was to distribute a cash dividend of 10.3 yuan per 10 shares, with a dividend payout ratio of 79.1% calculated according to corporate accounting standards.
Institutions hold a bullish view on the coal market outlook. A research report from Guotai Junan Securities Research Institute stated that even without considering the impact of geopolitical conflicts, the global medium- to long-term coal supply-demand balance has entered a phase of marginal tightening, and the global coal price center is expected to continue rising. The institution is strategically bullish on this summer's power shortage scenario and coal prices, predicting that the summer peak may reach or even break through 1,000 yuan per ton. Shanxi Securities pointed out that with downstream steel mills' hot metal production remaining at high levels and coke enterprises actively replenishing inventories, the fifth round of coke price increases has been fully implemented, and coking coal prices will continue to receive support. A research report from Founder Securities believes that in 2026, the coal industry's prosperity will significantly recover, with external factors restricting import supply and rising domestic industrial electricity demand, leading to a steady increase in coal prices.
In the international energy market, Indonesia's new export regulations have delayed coal shipments, pushing Asian benchmark coal prices to near two-year highs; coal futures for June delivery at Australia's Newcastle port closed the week at $148.75 per ton, a new high since August 2024. According to data from the National Bureau of Statistics, China's raw coal production in 2025 was 4.85 billion tons, a year-on-year increase of 1.4%. Industry insiders analyzed that coal supply may become further strained during the peak summer demand period.
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