Shenhua Guoneng Energy Group Co., Ltd, a subsidiary of China's largest coal producer Shenhua Group, is to sell its 20 percent equity in Shanxi Jindong Energy Development Co., Ltd.
The equity is quoted for sale at a price of 143 million yuan in China Beijing Equity Exchange.
This equity selling is regarded as a start of Shenhua to step up peeling off non-core coal assets and withdrawing from some coal companies in order to rein in losses in coal business amid the gloominess of coal industry.
According to statistics, Shenhua allocated only 13.1 percent in its capital spending plan for coal business in 2015. In the first half of 2015, operating revenue of Shenhua declined 32.1 percent on year to 87.8 billion yuan, and its net profit slid 45.6 percent on year to 11.7 billion yuan.
Coal business contributed 28 percent to its operating revenue, while power generation contributed 44 percent.
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