
Shanxi Coking Company has a complex business structure that includes multiple subsidiaries and joint ventures.
The company's main business operations are focused on coal mining and coking, with a strong presence in the Shanxi Province of China.
Shanxi Coking Company has a significant market share in the Chinese coal industry, with a production capacity of over 10 million tons of coal per year.
Its coking business is also a major contributor to the company's revenue, with a production capacity of over 1 million tons of coke per year.
The company's business performance has been affected by fluctuations in global coal prices and government regulations on the industry.
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Ownership and Management
Shanxi Coking Company is a state-owned enterprise with a complex ownership structure. The company is listed on the Shanghai Stock Exchange under the ticker symbol 600740.
The largest shareholder is Shanxi Coking Coal Group Co., Ltd., which holds a 32.67% stake in the company. Other significant shareholders include China Ping An Insurance (Group) Company and National Social Security Fund, holding 5.01% and 2.80% respectively.
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Public shareholders own approximately 59.52% of the company, making them a significant force in the company's decision-making process. The company's ownership is a mix of state-owned enterprises, institutional investors, and public shareholders.
The company's management team is led by CEO Jian Hong Du, who has been in the position since April 9, 2020. The company's Chairman is Feng Li, who has been in the position since March 7, 2019.
Executive Committee
The Executive Committee is responsible for overseeing the overall direction and strategy of Shanxi Coking Co., Ltd. Jian Hong Du serves as the CEO, having taken on the role in 2020.
Jian Hong Du's experience as CEO spans over 2 years, with a strong background in leadership.
Xiao Jun Wang, on the other hand, has been the Director of Finance/CFO since 2018, bringing a wealth of financial expertise to the table.
Xin Wei Guo and Zheng Yi Zhai are also part of the Executive Committee, with Xin Wei Guo serving as Corporate Officer/Principal since 2022 and Zheng Yi Zhai as Comptroller/Controller/Auditor since 2018.
Here is a brief overview of the Executive Committee members:
Yan Long Li is also part of the Executive Committee, serving as Investor Relations Contact, although his age and start date are not publicly disclosed.
Board of Directors
The Board of Directors plays a crucial role in shaping the direction of Shanxi Coking Co., Ltd. Feng Li serves as the Chairman, a position he has held since March 7, 2019.
Feng Li, at 58 years old, brings a wealth of experience to the table. He has been instrumental in guiding the company's growth and development.
Yi Zhang, BRD, joined the Board in January 2022, marking a significant addition to the team. At 55 years old, he brings a fresh perspective to the company's decision-making processes.
Xiao Jun Wang and Jian Hong Du, both BRD members, were appointed in 2020. They share the same age, 56, and have been part of the Board since April 9 and May 7, respectively.
Ling Cao, another BRD member, has been with the company since October 8, 2018. She is 55 years old and has been a valuable contributor to the Board.
Xiang Hua Kong, the current Chairman, took over the role on January 10, 2022. He is 56 years old and has been instrumental in shaping the company's vision.
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Zhong Li Chen, Zheng Yi Zhai, Chun Sheng Sun, and Gao Gui Chai are also BRD members, all appointed in 2018 or 2022. They bring a diverse range of skills and experience to the Board.
Here's a list of the Board of Directors members:
Rewards
The rewards of ownership and management are definitely something to be considered. Trading at good value compared to peers and industry is a significant advantage.
One of the key benefits is a high level of non-cash earnings, which can be a game-changer for investors.
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Operations
Shanxi Coking Company operates in several key segments, including coking production, chemical production, and thermal power generation.
The coking segment is the backbone of the company's business, producing around 14.6 million tons of coking coal in 2022.
Shanxi Coking's coking production volume reached 6 million tons in 2022, generating approximately ¥18 billion in revenue.
The company's coal washing segment processed around 5 million tons of raw coal in 2022, yielding revenues of roughly ¥3 billion.
Here's a breakdown of Shanxi Coking's main operational segments:
- Coking Production: Produces metallurgical coke for steel production.
- Chemical Production: Focuses on coal chemical processing, producing products like methanol and ammonium sulfate.
- Thermal Power Generation: Operates coal-fired power plants contributing to energy supply.
How It Works
Shanxi Coking Co., Ltd. operates primarily in the production and sale of coking coal and other related products.
The company is based in Shanxi Province, China, and plays a significant role in the coal and steel industries.
Its operations are categorized into several segments, including coking production, chemical production, and thermal power generation.
Established in 1997, the company has a long history of serving the coal and steel industries.
Cooking Production
The coking segment is the backbone of Shanxi Coking's business, producing approximately 14.6 million tons of coking coal in 2022.
This production is critical for supplying the steel industry, where coking coal is a key raw material.
Coking coal production is a crucial aspect of Shanxi Coking's operations.
The coking segment is the core revenue driver for Shanxi Coking, generating approximately ¥18 billion in revenue in 2022.
This revenue is a significant contributor to the company's overall financial performance.
In 2022, the coking production volume reached 6 million tons, making it a substantial segment for the company.
Chemical Production Segment
The Chemical Production Segment is a crucial contributor to Shanxi Coking's revenue, generating sales of around ¥1.5 billion in 2022. This segment produces chemical products derived from coke oven gas, including benzene, toluene, and phenol.
Shanxi Coking's chemical production segment is a significant player in the industry, with a revenue of ¥1.5 billion in 2022.
Here's a breakdown of the company's production volumes and revenue for different segments:
The company's focus on optimizing production processes has contributed to its operational efficiency and profitability.
Washing Segment
Shanxi Coking's coal washing segment is a significant contributor to the company's revenue. In 2022, this division processed around 5 million tons of raw coal, yielding revenues of roughly ¥3 billion.
The demand for washed coal is on the rise, which has a positive impact on the company's financials. This high-quality coal is in high demand.
Shanxi Coking's strategic location in Shanxi Province, a coal-rich area, gives the company a competitive edge. Lower transportation costs for raw materials are a major advantage.
The company's partnerships with major steel manufacturers also bolster its revenue streams. This collaboration is crucial for the success of the coal washing segment.
Continuous investment in production capabilities is key to the segment's success. This investment enables Shanxi Coking to meet the growing demand for washed coal.
Financial Performance

Shanxi Coking Co., Ltd. reported a revenue of RMB 73.1 billion in 2022, a 16.5% growth from the previous year.
This significant increase in revenue is a testament to the company's growing business. The net income attributable to shareholders was approximately RMB 4.9 billion, reflecting a year-on-year increase of 12%.
Here's a breakdown of the company's financial metrics for 2021 and 2022:
The company's total assets also saw a growth of 9% in 2022, reaching RMB 60.5 billion.
Market and Sustainability
Shanxi Coking is a significant player in China's coking coal market, ranking among the top five largest producers. Its production capabilities give it a competitive edge in pricing and supply stability.
The company's market share is substantial, with approximately 8% of the domestic market as of mid-2023.
Shanxi Coking is also committed to sustainability, aiming to reduce its environmental impact through various initiatives.
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Price Volatility
Price volatility is a crucial aspect of any investment, and it's essential to understand how a company's stock price behaves over time.
Shanxi Coking Coal Energy Group's stock price has been relatively stable in the past 3 months, with a 1 Month Change of 2.49% and a 3 Month Change of -4.50%, which is lower than the CN market's average movement of 5.4%.
The company's weekly volatility has been stable over the past year, with a weekly movement of 5%. This is lower than the oil and gas industry average movement of 4.1%.
To put this into perspective, the 10% most volatile stocks in the CN market have seen a weekly movement of 9.3%, while the 10% least volatile stocks have seen a weekly movement of 3.0%.
Here's a comparison of 000983's volatility with the industry and market averages:
This information can help investors make informed decisions about their investments, and it's essential to consider multiple factors before making a decision.
Market Position
Shanxi Coking is one of the largest coking coal producers in China, often ranking in the top five.
Its production capabilities allow it to maintain a competitive edge in pricing and supply stability in the domestic market.
As of mid-2023, Shanxi Coking held a market share of approximately 8% in China’s coking coal market.
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Sustainability Initiatives
The company has been making strides in sustainability, a crucial aspect of doing business in today's market. They've implemented measures to reduce emissions and improve energy efficiency.
By 2022, they achieved a notable reduction in carbon emissions, boasting a 10% decrease year-on-year. This aligns perfectly with national goals for carbon neutrality.
Their commitment to sustainability is a refreshing change in the industry, and it's great to see them taking proactive steps towards a more environmentally friendly future.
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Risk Analysis
In the realm of market and sustainability, a crucial aspect to consider is the risk analysis of a company.
A lower profit margin of 5.2% compared to last year's 8.5% is a notable trend.
This decline in profit margins may indicate a decrease in the company's ability to absorb financial shocks.
The dividend of 2.97% is not well covered by free cash flows, which suggests that the company may struggle to maintain its dividend payments.
This shortfall in dividend coverage could lead to a decrease in investor confidence and potentially impact the company's stock price.
Research and Development
Shanxi Coking invests significantly in Research and Development to enhance production efficiency and develop new chemical products.
The company's R&D expenditure in 2022 totaled RMB 532 million.
This substantial investment demonstrates the company's commitment to innovation and staying ahead in the industry.
Stock and Shareholder Information
As of 2015, Shanxi Coking Group owned 14.22% stake as the largest shareholder. This significant stake gives the company a strong foundation.
Shanxi Coking Group is followed by Xishan Coal and Electricity Power, which owned 11.50% stake, a subsidiary of Shanxi Coking Coal Group. This highlights the complex ownership structure of the company.
Here's a breakdown of the ownership structure:
Shanxi Coking is listed on the Shanghai Stock Exchange under the ticker symbol 600740, with a stock price that closed at RMB 18.75 on October 20, 2023. This reflects a 25% increase since the beginning of 2023, showing investor confidence in the company's growth prospects.
Shareholders
As of 2015, Shanxi Coking Group owned 14.22% of the company as the largest shareholder.
Shanxi Coking Group's significant stake is impressive, making it the largest shareholder.
Xishan Coal and Electricity Power, a subsidiary of Shanxi Coking Coal Group, held 11.50% of the company's shares.
These two entities have a substantial presence in the company's ownership structure.
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Stock Overview

Shanxi Coking Coal Energy Group Co., Ltd. is listed on the Shanghai Stock Exchange under the ticker symbol 000983.
The company's stock has experienced a decline of 47.3% below its estimated fair value. This suggests that investors may be losing confidence in the company's growth prospects.
Shanxi Coking Coal Energy Group Co., Ltd. is expected to see earnings growth of 11.37% per year.
The company's earnings have been forecasted to grow by 12% year-over-year, which is a notable increase.
Shanxi Coking Coal Energy Group Co., Ltd. underperformed the CN Oil and Gas industry, which returned 1.1% over the past year.
The company's stock price has also underperformed the CN Market, which returned 23% over the past year.
Here's a summary of the company's share price performance:
For the fiscal year ending December 31, 2022, Shanxi Coking Co., Ltd. reported a revenue of RMB 73.1 billion (approx. USD 10.3 billion), marking a growth of 16.5% compared to the previous year.
The company's net income attributable to shareholders was approximately RMB 4.9 billion (approx. USD 700 million), reflecting a year-on-year increase of 12%.
Company Details
Shanxi Coking Company is a Chinese state-owned enterprise based in Luliang, Shanxi Province. The company was established in 1958.
It has a long history of coking coal mining and processing, with its first coal mine opening in 1959. The company's coal reserves are estimated to be over 2 billion tons.
Shanxi Coking Company has a significant presence in the Shanxi province, with multiple mines and processing facilities scattered throughout the region.
Stock Information
Shanxi Coking is listed on the Shanghai Stock Exchange under the ticker symbol 600740.
The stock price closed at RMB 18.75 on October 20, 2023.
Since the beginning of 2023, the stock has experienced an increase of 25%.
Earnings are forecast to grow 11.37% per year.
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