China National Coal Group Corp.

Updated: October 20, 2016 Source: sasac.gov.cn
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China National Coal Group Corp. (abbreviated as ChinaCoal or the Group), previously known as China National Coal Import and Export Corporation (CNCIEC) which was established in July 1982, is one of the key state-owned enterprises under the State-owned Assets Supervision and Administration Commission of the State Council. Now it has become one of the most distinctive conglomerates in the Chinese coal industry after several rounds of asset restructuring. 

ChinaCoal’s core businesses comprise: coal production and trade, coal chemical, coal-bed methane exploration, pit-mouth power generation, coal mine construction, coal mining equipment manufacturing and relevant engineering technical services. ChinaCoal  now has 21 subsidiaries of wholly-owned, holding or equally shared and 4 overseas offices, and partly owns 11 other companies. By the end of 2008, ChinaCoal accumulated its total assets to RMB 122.95 billion yuan with the debt to asset ratio of 35.5%, and has 114,000 employees in total.

Since its separation from previous Ministry of Coal Industry and reorganization in May 1999, ChinaCoal has been focusing on the mainstay business of coal and accelerated organizational adjustment and business restructuring. The Group thereafter steps into a fast track of sustainable and rapid growth. ChinaCoal ranked the second in terms of sales revenue in the coal industry for the past three consecutive years and ranked the top among China’s top 500 industrial enterprises. In 2008, ChinaCoal’s revenue reached RMB 71.9 billion yuan, total profit RMB 11.3 billion yuan, total coal production 114.11 MTs, and coal trade 102.66 MTs. 

ChinaCoal consistently promotes innovations in corporate structure and governance by means of earnestly implementing the guidelines set out by the state for promoting equity reforms and establishing modern corporate governance within SOEs. China Coal Energy Company Ltd., exclusively initiated by ChinaCoal with injection of its core assets, was founded on August 22, 2006 with the approval by SASAC, and was listed in Hong Kong Stock Exchange on December 19, 2006, raising HKD 15.12 billion in its IPO. And on February 1, 2008, China Coal Energy Company Ltd. was listed in Shanghai Stock Exchange and raised RMB 25.67 billion yuan in its IPO.

ChinaCoal aims to achieve “22255” till the end of coming five years, namely, 200 MTs of annual coal production, RMB 200 billion yuan of total asset (with sales revenue of RMB 150 billion yuan corresponding), RMB 20 billion yuan of total profits; meanwhile, to build up 5 major coal production bases in Shanxi, Jiangsu, Heilongjiang Provinces, Inner Mongolia Autonomous Region (Yulin) and Xinjiang Uyghur Autonomous Region, and to shape into the pattern that its 5 core businesses such as coal production, coal chemical, power generation, coal mining equipment manufacturing and coal mine construction coordinate the mutual developments. Upon the aforesaid achievements,  ChinaCoal will join into global leading coal companies and become a large scale energy group with strong international competitiveness by then.

In order to achieve the above targets, ChinaCoal endeavors to implement the overall strategy, which includes adhering to the market-oriented and customer-centered operational philosophy; upholding the four principles in development by following the direction of “enlarged production scale, modernized technology and equipment, professionalized working teams and informationized management measures”; setting up the five standards of “high threshold, high target, high quality, high efficiency and high profitability”; and implementing the guidelines of adjustment, improvement, enhancement and development, to promote works in all fields such as production technology, operational management and project investments onto a new level.

By exerting the strategic opportunities when State now devotes in constructing large coal conglomerates and large coal production bases, ChinaCoal adheres to the sustainable growth through energy and resource saving and efficiency improvement, to make itself a large scale energy group with strong international competitiveness. 
Editor: Li Jing