Generating losses, how about coal?Look at anyuan coal industry these years of financial results know
Anyuan Coal Group Co., LTD. (stock abbreviation: Anyuan Coal), an important energy enterprise under Jiangxi Energy Group, was officially listed in Shanghai Stock Exchange in July 2002.Anyuan Coal Industry Group has strong regional location advantages, port and wharf resources advantages, coal and electricity integration advantages and major shareholder support advantages, has a prominent position in the coal supply and demand pattern of Jiangxi Province.Let’s focus on the results, but not much on the recent stock performance. Let’s take a look at the bubble chart: It’s a bit of a heart-rending chart. The biggest bubble is in the first three quarters of 2013.Fortunately, in the first three quarters of 2021, revenue growth reached 55.7%, which is the highest position on the chart, but net profit was still in the red.Although the revenue reached 12.6 billion yuan in the first three quarters of 2013, in the recent five years, Anyuan Coal industry also stabilized the unfavorable factors of revenue decline, and began to grow for five consecutive years.But net profit is not so optimistic, most years or loss, but the amount of loss is not very large.In 2021, the third quarter, which has always been a mediocre performance, still ushered in a good double growth, which is also the key to its annual profit. After all, the price rise of coal is painful for thermal power enterprises, but “happiness” for coal production enterprises.Seeing its gross margin as low as 4.3%, we can understand that “open source” does not work, no matter how “cut back”, it is not easy to make the enterprise profitable.We’ll talk about the cost of that later, which is pretty good, but there are some things you can’t get rid of, like the interest on the loan.Anyuan Coal’s main business is actually coal logistics, which is why its gross profit margin is extremely low. Logistics has been really difficult in recent years, as we mentioned the day before yesterday in energy shipping.What is hard to accept is that in the first half of 2021, coal logistics’ gross margins, already low, were declining.But the coal industry is doing well, with gross margins up to 16.35% in the first half, which would normally be a break-even gross margin.However, in anyuan coal’s revenue composition, the proportion of unprofitable coal logistics is still increasing, from 70% in the first half of 2020 to 81% in the first half of 2021.The coal industry, where gross margins are rising, is declining, but not much in terms of revenue.The balance sheet and solvency of such unprofitable enterprises are generally more problematic.Unsurprisingly, anyuan’s current ratio is only 0.53, and its quick ratio is only 0.38, which is already dangerous.We also do not look at the specific composition of current assets and liabilities, remember that it is necessary to renew the loan, such a core enterprise in the province, the loan generally no big problem.In addition to current interest-bearing liabilities, Anyuan Coal also has long-term interest-bearing liabilities, totaling more than 3.7 billion. Although this debt scale is not high in A shares, it can not be said to be very low compared with its small net assets.Even if there is no problem in renewing the loan, the interest will always have to be paid.All along, anyuan coal industry’s financial expenses are the first major period expenses, the first three quarters of almost no less than 150 million yuan, fortunately, its sales costs and administrative costs are relatively saved.Without these financial burdens, in fact, anyuan coal industry is not a long-term loss.Now the main business can barely support the interest on these debts, and nobody knows when it will be light to carry on like this.In addition to interest-bearing liabilities, there is also, of course, debt owed to suppliers, which has risen by 510 million yuan over the past year and by 790 million yuan since the beginning of the year.There are also payments owed by customers to Anyuan coal and payments advanced by Anyuan coal to suppliers, the total is also rising, but the amount is still less than the amount payable.Anyuan Coal’s cash flow performance is not bad. Although the net cash flow of operating activities has been net outflow in three periods, it has been positive in the last three quarters. Combined with the net cash inflow achieved by the increase of payments owed to suppliers, there are still some problems in terms of stability.In the first three quarters of each year, there is a net investment demand of hundreds of millions of yuan, but there is no decent new revenue growth point, which makes people worry about the quality of its investment.The above is a brief interpretation of the content of anyuan coal’s financial statements. I thought the thermal power industry was losing money and the coal industry had to make a lot of money.That’s still not the case with Anyuan coal, which is already expected to report a profit, which is some comfort for investors.Of course, Anyuan coal industry does not represent the general situation of the domestic coal industry, we empty to choose two to see.Disclaimer: The above is a personal analysis and does not constitute investment advice for anyone!