On October 24, China Shenhua announced that for the first three quarters of 2025, it achieved revenue of CNY 213.15 billion, a year-on-year decrease of 16.6%; net profit was CNY 39.05 billion, down 10% compared to the previous year. In the third quarter, revenue amounted to CNY 75.04 billion, reflecting a year-on-year decline of 13.1%; net profit was CNY 14.41 billion, down 6.2% from a year earlier.

Firstly, regarding financial performance, China Shenhua's Q3 net profit fell 6.2% year-on-year, with an overall net profit decline of 10% for the first three quarters, and revenue dropping by as much as 16.6%. This performance reflects the real pressures the company is facing in the context of current structural adjustments in the energy market. The main challenge stems from dual pressures on both coal and power sectors, affecting both prices and sales volumes. Data shows that for the first three quarters, coal sales volume decreased by 8.4% year-on-year, with an average sales price of CNY 487 per ton, a significant drop of 13.7% year-on-year. As the "dual carbon" goals continue to advance and the proportion of renewable energy generation rises, overall demand in the coal market has weakened, compounded by the slowing pace of domestic economic recovery and muted industrial electricity demand, leading to sustained pressure on coal prices. Moreover, the company's electricity sales volume declined by 5.5% year-on-year, with average selling prices also falling, significantly impacting profitability in the thermal power segment. Therefore, the decrease in revenue and profit fundamentally reflects the cyclical and structural contradictions faced by traditional fossil fuel enterprises amid a broader energy transition.

Secondly, in terms of business structure and capacity layout, although China Shenhua still centers on coal and power, the adjustments to its installed capacity have clearly shown strategic transformation intentions. As of Q3 2025, the company's total installed capacity reached 48,681 megawatts, with coal-fired power accounting for a high 93.2%, indicating that thermal power remains a critical foundation. However, it is noteworthy that during the same period, photovoltaic power capacity increased by 264 megawatts, while hydropower capacity saw a slight decrease, indicating that the company is selectively expanding into clean energy. Although the proportion of new energy remains low, this incremental change signals positive intent: China Shenhua is not rigidly adhering to traditional energy pathways, but rather is attempting to steadily promote a low-carbon transformation while ensuring energy security.

Additionally, production of commodity coal saw a slight decline of 0.4%, while sales volume decreased by 8.4%, illustrating insufficient market absorption capacity and an upward risk in inventory pressure, which could further exacerbate downward price pressures. This situation highlights the current stage of "relative overcapacity and weak demand" faced by the coal industry.

Thirdly, from a strategic perspective, China Shenhua's recent plan to acquire assets from China Energy Group, including coal, pithead coal power, and coal chemical assets, is key to understanding its future trajectory. This transaction involves 13 target companies with total assets nearing CNY 258.4 billion and net assets exceeding CNY 93.8 billion. If completed successfully, it will significantly enhance the company's control and synergy across the entire coal industrial chain. Notably, this acquisition encompasses the integrated chain of "coal mining - pithead power generation - logistics - coal chemicals," which will aid in improving resource utilization efficiency, lowering operational costs, and strengthening pricing power in regional markets. In a period of declining coal prices, this strategy of "exchanging efficiency for scale and seeking survival through integration" is particularly crucial. Through horizontal expansion and vertical integration, China Shenhua is expected to consolidate its leading position amid industry reshuffling, as survival is the top priority.