(Aug. 21, 2009 - Chinavestor) Yanzhou Coal Mining Co. (NYSE:YZC), the third largest Chinese coal miner after China Shenhua Energy Co. (HKG:1088) and China Coal (HKG:1898), reported 2009 first six months operational statistics today. According to company figures, net sales fell 25.9% to RMB 8,864.0 million ($1.296 billion) year over year (YoY) while net profit fell harder, 48.2% to RMB 2,025.7 million ($296.3 million). The company produced 4.4% less coal for six months ended June 30 ,2009, but a slump in coal price is responsible for such a dramatic drop in net profits. The effective selling price of coal fell from RMB 639.9/ton to RMB 493.7/ton YoY, a 22.8% decrease, according to Yanzhou Coal (NYSE:YZC).
Despite a sluggish performance, liquidity is not an issue for the company. Yanzhou Coal generated RMB 3,611.5 million ($528.26 million) cash flow from operation for the fist six months of 2009, a slight change from same period last year.
While the company portrays an optimistic outlook for the rest of the year, it is worth recognizing that China Shenhua Energy Co. (HKG:1088) reported a 17.6% increase in coal output for the same period vs. Yanzhou's 4.4% contraction just a month ago.