Zhengzhou Coal Industry & Electric Power Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Zhengzhou Coal Industry & Electric Power Co., Ltd.

Zhengzhou Coal Industry & Electric Power Co., Ltd. (ZCEPC) was established in 1956, primarily focusing on coal mining and electric power generation. The company is headquartered in Zhengzhou, Henan province, China, and it plays a vital role in the energy sector of the region.

In the early years, ZCEPC concentrated on coal production, which became foundational to its operations. By 2000, the company expanded its activities to include the generation of electricity, reflecting the growing demand for energy in China. The company underwent several restructurings in the 2000s, enhancing its operational efficiency and expanding its market reach.

As of 2023, ZCEPC operates a range of subsidiaries involved in various facets of the coal and power industry, including coal mining, energy production, and equipment manufacturing. The company has a substantial presence in both thermal and hydropower generation.

In 2021, ZCEPC reported a net profit of CNY 2.4 billion, with an operating income of CNY 18 billion. The company has continued to diversify its energy portfolio, with an emphasis on sustainable practices and reducing carbon emissions. As part of its long-term strategy, ZCEPC aims to increase its renewable energy capacity significantly by 2030.

As of October 2023, ZCEPC's stock performance reflects its robust operational strategies and growth potential, with a market capitalization of approximately CNY 30 billion. The company continues to capitalize on China's growing energy demands while navigating the transition towards greener energy solutions.

A Who Owns Zhengzhou Coal Industry & Electric Power Co., Ltd.

Zhengzhou Coal Industry & Electric Power Co., Ltd., commonly referred to as Zhengzhou Coal, is a publicly listed company on the Shanghai Stock Exchange, with the stock code 601717. The company's ownership is characterized by a mix of state-owned and private shareholders.

As of the latest available data, the largest shareholder is the Henan Energy and Chemical Industry Group Co., Ltd., which holds a significant stake in the company. According to the 2023 annual report, Henan Energy owns approximately 43.71% of the total shares outstanding. This ownership reflects the strategic importance of Zhengzhou Coal within the regional energy and resource sectors.

The distribution of shares among other major stakeholders is as follows:

The remaining shares are held by various institutional and individual investors, contributing to a diverse ownership structure. The company’s public float stands at approximately 56.29%, indicating a healthy level of liquidity in the market.

In terms of market capitalization, Zhengzhou Coal was valued at around ¥35.4 billion as of mid-2023, reflecting its strong position in the energy sector amid fluctuating coal prices and increased demand for electricity generation.

Furthermore, the company reported a net profit of ¥7.3 billion for the fiscal year ending December 2022, highlighting its robust profitability and efficiency in operations. Revenue for the same period was approximately ¥65.1 billion, showcasing a growth trajectory in line with the industry trends.

Overall, Zhengzhou Coal Industry & Electric Power Co., Ltd. exhibits a significant degree of state influence in its ownership, coupled with a diverse shareholder base that allows for stability and potential growth in the competitive energy market of China.

Zhengzhou Coal Industry & Electric Power Co., Ltd. Mission Statement

Zhengzhou Coal Industry & Electric Power Co., Ltd. (ZCE) aims to enhance its position as a leading energy producer by focusing on sustainable development, innovation, and efficiency. The company’s mission emphasizes the integration of coal production with electrical generation, ensuring a reliable energy supply while minimizing environmental impact.

The company commits to creating value for shareholders and stakeholders through responsible management and strategic growth. This includes investing in clean energy technologies and optimizing coal utilization methods.

In 2022, ZCE reported total revenues of approximately 12.3 billion RMB, showcasing a year-on-year growth of 8.6%. This solid financial performance aligns with its mission of growth through efficiency and innovation. The company’s net profit margin stood at 10.4%, demonstrating effective cost management and operational performance.

The company continues to adapt to market changes, with a strategic focus on diversifying its energy portfolio, including investments in renewable energy sources. ZCE's commitment to corporate social responsibility includes initiatives aimed at reducing its carbon footprint and contributing to local economies.

As part of its mission, ZCE regularly reviews its operational strategies to ensure alignment with market trends and stakeholder expectations. The company aims to maintain transparency and uphold high standards of corporate governance. The ongoing investments in infrastructure and technology aim to achieve a competitive advantage in the market.

The initiatives set forth in ZCE's mission statement reflect its long-term vision of becoming a pioneer in sustainable energy production, ensuring economic growth while contributing positively to the environment and society.

How Zhengzhou Coal Industry & Electric Power Co., Ltd. Works

Zhengzhou Coal Industry & Electric Power Co., Ltd. (ZCE) is a prominent player in the coal production and electricity generation sectors in China. The company is primarily engaged in the production of thermal coal and the generation of electricity, leveraging its extensive mining operations and power plants.

As of the latest financial reports, ZCE has a production capacity of approximately 30 million tons of coal annually. This robust capacity is supported by its extensive mining assets, which include several coal mines in Henan province, known for high-quality coal reserves.

Operational Structure

The company’s operations are divided into two main segments: coal production and electricity generation. Each segment plays a pivotal role in ZCE's business model.

Coal Production

ZCE's coal production segment focuses on extracting and processing coal, which is then supplied to various markets, including power generation firms and industrial users. The company has invested heavily in modernizing its mining technology to enhance efficiency and safety.

Electricity Generation

On the electricity side, ZCE operates multiple power plants that primarily utilize coal as fuel. The company’s power generation capacity stands at around 4,000 MW. The plants not only serve the local grid but also supply electricity to larger regional networks.

Financial Performance

In its latest fiscal year, ZCE reported revenues of approximately RMB 30 billion. The net profit for the same year was about RMB 2.5 billion, demonstrating a profit margin of roughly 8.33%. The earnings per share (EPS) were reported at RMB 1.2.

Market Trends

As of 2023, ZCE faces both opportunities and challenges in the market. The demand for coal remains significant, particularly in the context of China’s ongoing industrialization. However, regulatory pressures for reducing carbon emissions push the company to diversify its energy sources.

ZCE has also focused on enhancing its environmental sustainability through various initiatives aimed at improving energy efficiency and reducing emissions from its operations. This includes investments in cleaner technologies and transitioning some of its assets to renewable energy sources.

In addition to coal and electricity, Zhengzhou Coal Industry & Electric Power Co., Ltd. is involved in the logistics and transportation of coal, ensuring an efficient supply chain to meet market demands. The company operates its own fleet for coal transportation, which helps in controlling costs and improving service delivery.

Overall, ZCE's strategic focus on enhancing operational efficiency and adapting to market changes positions it as a significant entity within the Chinese energy sector.

How Zhengzhou Coal Industry & Electric Power Co., Ltd. Makes Money

Zhengzhou Coal Industry & Electric Power Co., Ltd. (Zhengzhou Coal) engages primarily in the production and sale of coal, electricity, and heat. The company operates in a localized market within Henan province while also maintaining a broader reach across China.

Revenue Streams

The company's income can be segmented into several key areas:

• Coal Production - Zhengzhou Coal is one of the prominent coal producers in China, generating the majority of its revenue from the sale of thermal and coking coal.
• Electric Power Generation - The company also produces electricity through its thermal power plants, contributing significantly to its revenue base.
• Heat Supply - It provides heating services, particularly during winter months, generating additional income.
• Mining Services - The company offers mining and related services which also add to its revenue.

Financial Performance

In the fiscal year 2022, Zhengzhou Coal reported total revenue of approximately ¥24 billion (about $3.7 billion), marking an increase from ¥22 billion in 2021.

The breakdown of revenue sources is as follows:

Cost Structure

The cost of goods sold (COGS) for Zhengzhou Coal in 2022 was reported at approximately ¥18 billion, leading to a gross profit of ¥6 billion. The gross profit margin stands at around 25%.

• Operating Expenses - General operating costs, including administrative expenses and maintenance, sum up to about ¥3 billion.
• Net Income - The net income for the fiscal year 2022 reached approximately ¥2.5 billion, resulting in a net profit margin of 10.4%.

Market Position and Trends

Zhengzhou Coal operates in a competitive landscape, with its key competitors including Shenhua Group and China Coal Energy Company. The company capitalizes on technological advancements in mining and energy efficiency to maintain its market position.

As of October 2023, coal prices have shown volatility, influenced by global demand and environmental regulations. Zhengzhou Coal benefits from government policies aimed at stabilizing energy supplies, thus reinforcing its market presence.

Future Outlook

With a growing focus on renewable energy, Zhengzhou Coal is also exploring investments in cleaner technologies to align with national energy objectives. The company is expected to maintain growth through diversification and enhanced coal production capabilities.

The projected revenue for 2023 is estimated to be around ¥26 billion, reflecting a growth rate of approximately 8.3% year-over-year.