Shenhuo's estimated net profit of 300 million in 2020 is 77.7% lower than the same period last year.

Shenhuo (000933) recently issued a performance forecast for 2020, which is expected to decline in the same direction. During the reporting period, the net profit attributable to shareholders of listed companies was 300 million yuan, down 77.70% from the same period last year (before retroactive); basic earnings per share was 0.158 yuan per share.

The company's net profit after deducting non-recurring profits and losses belonging to shareholders of listed companies is expected to be 460 million yuan, an increase of 2.03 billion yuan, or 129.30%, over the same period last year (before retroactive adjustment). The main reasons are: the company's electrolytic aluminum business profitability increased and provision for large impairment in the same period last year. In 2020, the company's net profit belonging to shareholders of listed companies is expected to be 300 million yuan, a decrease of 1.045 billion yuan or 77.70% compared with the same period last year (before retroactive adjustment). The main reason is that in the same period last year, the company confirmed 3.255 billion yuan from the transfer of exploration rights in Gaojiazhuang Coal Mine, Zuoquan County, Shanxi Province, and 435 million yuan from the equity transfer of Henan Shenhuo Guangming Real Estate Development Co., Ltd.

Electrolytic aluminum plate:

During the reporting period, affected by the relationship between supply and demand in the electrolytic aluminum market, the price of electrolytic aluminum products in Xinjiang increased by 248.31 yuan / ton, with a profit increase of 198 million yuan over the same period last year; affected by the decline in the prices of bulk raw materials such as alumina and anode carbon blocks, the unit complete cost decreased by 550.78 yuan / ton compared with the same period last year, with a profit increase of 439 million yuan. In 2020, the total profit of the company's Xinjiang business was 1.218 billion yuan, an increase of 637 million yuan over the same period last year, and the net profit belonging to shareholders of listed companies was 929 million yuan, an increase of 486 million yuan over the same period last year.

During the reporting period, the company increased capital to hold Yunnan Shenhuo Aluminum Co., Ltd. (hereinafter referred to as "Yunnan Shenhuo"). Yunnan Shenhuo was included in the scope of the merger. Yunnan sold 206800 tons of electrolytic aluminum in 2020, with a total profit of 528 million yuan. increase the net profit belonging to the shareholders of the listed company by 176 million yuan.

Coal plate:

During the reporting period, the total cost per unit of Xuchang mining area decreased by 19.93 yuan / ton compared with the same period last year, with a profit increase of 51 million yuan, and the price excluding tax decreased by 67 yuan / ton and profit by 172 million yuan compared with the same period last year. In 2020, the total profit of the company's coal business in Xuchang area was 254 million yuan, and the net profit belonging to the shareholders of the listed company was 145 million yuan, a decrease of 102 million yuan compared with the same period last year.

During the reporting period, the total cost per unit in Yongcheng mining area decreased by 181.55 yuan / ton compared with the same period last year, with a profit increase of 510 million yuan, and the price excluding tax decreased by 110.99 yuan / ton and profit by 330 million yuan compared with the same period last year. In 2020, the coal business in Yongcheng mining area lost 298 million yuan, reducing the loss by 203 million yuan compared with the same period last year.

During the reporting period, the company incurred financial expenses of 451 million yuan.