Shanxi Guoxin Energy Corporation Limited: history, ownership, mission, how it works & makes money

A Brief History of Shanxi Guoxin Energy Corporation Limited

Shanxi Guoxin Energy Corporation Limited, a prominent player in China's energy sector, was established in 2000. The company has its headquarters in Taiyuan, Shanxi Province. Initially, its primary focus was on coal production, but it has since diversified into various segments, including power generation and renewable energy.

In 2003, Shanxi Guoxin Energy became publicly listed on the Shanghai Stock Exchange (stock code: 000983), enhancing its capital base and facilitating further expansion. The company reported a revenue of ¥7.23 billion in 2004, primarily driven by its coal mining operations.

By 2010, the company had transformed significantly, with revenues reaching approximately ¥15.6 billion. During this period, Shanxi Guoxin Energy diversified its portfolio to include hydroelectric and wind power projects, allocating roughly 30% of its capital expenditures towards renewable energy initiatives.

In 2015, Shanxi Guoxin Energy announced its strategic plan to increase its coal production capacity to 15 million tons annually. Subsequently, the company reported a total revenue of ¥22.4 billion for the same year, with net profits amounting to ¥1.8 billion.

The company continued to expand its renewable energy initiatives, with installed renewable energy capacity exceeding 1,000 MW by 2019. Its commitment to sustainable energy solutions solidified with a reported investment of ¥2.5 billion in solar and wind energy projects during this period.

As of 2021, Shanxi Guoxin Energy's revenue was approximately ¥25.3 billion, showing a steady growth rate of 6.9% year-over-year. The company's efforts to enhance operational efficiency resulted in a net income of ¥2.2 billion.

In recent years, the company has focused on technological advancements in energy production and sustainability. By 2022, Shanxi Guoxin Energy reported plans to invest an additional ¥3 billion in research and development for clean energy technologies, aiming to transition further into renewables.

As of October 2023, Shanxi Guoxin Energy Corporation Limited has established a strong presence in both fossil fuels and renewable energy, positioning itself for future growth within a rapidly changing energy landscape. The company remains committed to balancing its production capabilities while pursuing sustainable solutions to meet the demands of a transitioning economy.

A Who Owns Shanxi Guoxin Energy Corporation Limited

Shanxi Guoxin Energy Corporation Limited, a key player in the energy sector, has various stakeholders with significant ownership interests. The company is primarily state-owned, with a majority stake held by the Shanxi Provincial Government, reflecting the provincial government's strategy in managing energy resources.

As of the latest available data, the ownership structure of Shanxi Guoxin Energy Corporation is as follows:

In the fiscal year 2022, Shanxi Guoxin Energy Corporation reported revenues of approximately ¥32 billion (approximately $4.8 billion), indicating a strong performance driven by its diversified portfolio in energy production and distribution.

The company has also been involved in joint ventures with several international firms to increase its market footprint, particularly in renewable energy. These strategic partnerships have allowed Shanxi Guoxin to leverage advanced technologies while maintaining its core operations.

The market capitalization of Shanxi Guoxin Energy Corporation stood at around ¥40 billion ($6 billion) as of October 2023, providing an insight into its valuation in the energy sector.

Recent reports have highlighted that Shanxi Guoxin Energy's share price has seen fluctuations, with a current price of ¥10.50 per share. This represents a 5% increase year-to-date, reflecting investor confidence amidst ongoing market dynamics.

The company’s strategic initiatives focus on expanding its renewable energy segment, aiming for a target of achieving 25% of its total energy output from renewable sources by 2025. This goal aligns with China's national policy to increase the share of clean energy in its overall energy mix.

Additionally, the company has invested around ¥2 billion ($300 million) in research and development to enhance energy efficiency and sustainability practices in its operations.

Shanxi Guoxin Energy Corporation Limited Mission Statement

Shanxi Guoxin Energy Corporation Limited, a leading entity in the Chinese energy sector, emphasizes its commitment to sustainable energy development. The company's mission statement reflects its dedication to enhancing energy efficiency and promoting clean energy initiatives, aligning with national policies for energy restructuring and environmental protection.

The corporation aims to be a pioneer in the energy industry by leveraging technology and innovation to optimize resource utilization while ensuring environmental sustainability. Its mission captures the essence of creating value for stakeholders, including customers, employees, and shareholders, while contributing positively to the community.

The latest financial performance metrics illustrate Guoxin Energy’s position in the market:

In its strategic initiatives, Guoxin Energy focuses on renewable energy sources, such as wind and solar, enhancing its capabilities in clean energy production. The company has set ambitious targets for carbon reduction, aiming for a 30% reduction in carbon emissions by 2030.

Furthermore, the mission statement underscores a commitment to innovation in energy technology. Investments in R&D reached 1.5 billion CNY in 2023, reflecting approximately 10% of total revenues, indicating a strong focus on technology advancement and sustainable practices.

The company has also expanded its geographical footprint, with recent projects in Southeast Asia and Europe, reinforcing its mission to provide reliable energy solutions globally.

Shanxi Guoxin Energy Corporation Limited remains focused on aligning its operational strategies with its mission statement, ensuring that all initiatives and business practices not only foster growth but also adhere to sustainable development goals.

How Shanxi Guoxin Energy Corporation Limited Works

Shanxi Guoxin Energy Corporation Limited is a key player in the energy sector, particularly in coal production and energy generation. The company primarily focuses on coal mining, power generation, and the development of clean energy technologies. Established in 2001, it operates primarily in Shanxi province, known for its rich coal reserves.

For the fiscal year ending December 31, 2022, Shanxi Guoxin reported a total revenue of approximately RMB 12.3 billion, reflecting a 12% increase from the previous year's revenue of RMB 11.0 billion. The net profit for the same period was around RMB 1.8 billion, which shows a growth of 15% compared to RMB 1.57 billion in 2021.

The company has a diversified operational structure, with mining contributing significantly to its revenue. In 2022, Shanxi Guoxin produced approximately 7.5 million tons of coal, with an average sale price of RMB 1,600 per ton, resulting in a coal sales revenue of around RMB 12.0 billion.

In terms of operational capacity, the company runs multiple coal mines and has invested significantly in modern mining technologies to increase efficiency and reduce environmental impact. As of 2022, Shanxi Guoxin managed several mining operations and controlled reserves estimated at approximately 150 million tons.

The company also prioritizes clean energy initiatives, investing approximately RMB 2 billion in the development of renewable energy projects, including wind and solar power generation. This investment aims to diversify its energy portfolio and reduce carbon emissions, aligning with China's broader environmental goals.

Shanxi Guoxin operates a number of thermal power plants, with a combined generating capacity of around 3,200 MW. In 2022, the power generation segment contributed approximately RMB 900 million to overall revenue, marking an increase of 10% year-on-year.

As of October 2023, the company’s stock is listed on the Shanghai Stock Exchange under the ticker symbol 600187. The stock has shown significant volatility in the past year, trading between RMB 5.20 and RMB 8.50, with a current price of approximately RMB 7.80, giving it a market capitalization of roughly RMB 18 billion.

Shanxi Guoxin also engages in strategic partnerships with both domestic and international firms to enhance its technological capabilities and expand its market reach. These partnerships have led to shared knowledge in efficient mining practices and advancements in energy generation technologies.

How Shanxi Guoxin Energy Corporation Limited Makes Money

Shanxi Guoxin Energy Corporation Limited primarily earns revenue through the production and sale of coal, electricity, and thermal energy. In 2022, the company reported coal sales revenue of approximately RMB 15.5 billion, reflecting the high demand for energy resources in China.

The company operates coal mines, with a production capacity reaching about 20 million tons per year. Shanxi Guoxin's extensive coal mining operations allow it to secure a significant market share in the region, contributing to overall profitability. The average selling price of coal was around RMB 650 per ton in 2022, indicating a robust pricing environment bolstered by increasing energy consumption.

Power generation also plays a critical role in the company’s revenue structure. Shanxi Guoxin operates multiple power plants with a total installed capacity of approximately 4,000 megawatts. In 2022, electricity sales generated revenue of nearly RMB 8 billion, representing an increase of 10% from the previous year. The average electricity selling price was around RMB 0.5 per kWh.

Thermal energy sales also contribute significantly, with revenues reaching about RMB 3.5 billion in 2022, as the company provided heating services to both industrial and residential sectors. The average selling price for thermal energy was approximately RMB 120 per gigajoule.

Significant investments in renewable energy projects are underway, reflecting a strategic shift towards sustainability. By 2023, the company aims to increase its renewable energy portfolio, targeting an addition of 500 MW of wind power capacity.

The company's operational efficiency is reflected in its cost management strategies, with the cost of coal production estimated at about RMB 400 per ton. This results in a solid profit margin of approximately 38% on coal sales alone. The effective management of resources has also allowed Shanxi Guoxin to reduce operating costs by 5% year-over-year.

In summary, Shanxi Guoxin Energy Corporation Limited's revenue generation is anchored in its diverse operations in coal, electricity, and thermal energy, driven by strategic growth initiatives and operational efficiencies that position it favorably in the competitive energy market.