Breaking Down Anhui Hengyuan Coal-Electricity Group Co., Ltd. Financial Health: Key Insights for Investors

Anhui Hengyuan Coal-Electricity Group Co., Ltd., founded in December 2000 and rooted in Suixi County as part of Anhui Province Wanbei Coal-Electricity Group, stands at the intersection of traditional power and emerging clean energy, reporting a 2022 revenue of 8.386 billion yuan with a net profit of 2.513 billion yuan and a year‑over‑year growth of 24.25%; the company leverages an integrated coal-to-power model with coal-fired capacity totaling 8,000 megawatts while investing in 2,000 megawatts of solar and wind projects (which generated 2 billion yuan in 2022) as it pursues a mission of efficient energy supply, technological innovation, environmental responsibility and social commitment-read on to explore how its mission, vision and core values drive operational excellence, financial stability and community impact.

Anhui Hengyuan Coal-Electricity Group Co., Ltd. (600971.SS) - Intro

Anhui Hengyuan Coal-Electricity Group Co., Ltd. (600971.SS) is a state-owned enterprise headquartered in Suixi County, Anhui Province, established in December 2000 and operating as a subsidiary of Anhui Province Wanbei Coal-Electricity Group. The company's integrated operations span coal mining, washing, transportation, sales and power generation, with growing investments in renewable energy. Key 2022 figures: revenue 8.386 billion yuan (up 24.25% year-on-year) and net profit 2.513 billion yuan. The company operates coal-fired power plants totaling 8,000 MW and renewable projects (solar and wind) totaling 2,000 MW, which generated 2 billion yuan in revenue in 2022.

• Headquarters: Suixi County, Anhui Province
• Established: December 2000
• Listed: Shanghai Stock Exchange (600971.SS)
• Parent: Anhui Province Wanbei Coal-Electricity Group

Mission Statement

• Ensure stable, affordable energy supply to support regional industry and communities.
• Operate safe, efficient and environmentally responsible coal and power assets.
• Deliver sustainable returns to stakeholders while expanding clean energy capacity.
• Strengthen local employment and economic development in Anhui Province.

Vision

• Be a leading, diversified energy provider in central-eastern China balancing baseload coal-fired generation with rapidly scaling renewables.
• Achieve a resilient low-carbon transition through technological upgrades, emissions reduction and renewable integration.
• Establish a model state-owned enterprise combining operational excellence, financial strength and social responsibility.

Core Values

• Safety First - zero-tolerance for unsafe operations across mining and power facilities.
• Operational Excellence - continuous efficiency improvements across the coal-to-power value chain.
• Environmental Stewardship - emissions control, mine rehabilitation and renewable investment.
• Integrity & Compliance - adherence to regulations, transparent reporting and good governance.
• Community Commitment - job creation, local sourcing and social programs in Anhui.

Strategic priorities aligned to the mission and vision include optimizing the 8,000 MW coal fleet's efficiency, scaling the 2,000 MW renewables portfolio, and translating 2022 financial momentum (8.386 billion yuan revenue; 2.513 billion yuan net profit) into durable cash flow and capital allocation for decarbonization and modernization initiatives. For a deeper financial analysis, see Breaking Down Anhui Hengyuan Coal-Electricity Group Co., Ltd. Financial Health: Key Insights for Investors

Anhui Hengyuan Coal-Electricity Group Co., Ltd. (600971.SS) - Overview

• Core mission: optimize coal utilization and power generation to ensure stable, cost-effective energy supply for industrial and residential customers across Anhui province and neighboring regions.
• Integration focus: vertically combine coal extraction, processing, and electricity generation to capture value across the supply chain and improve operational synergies.
• Technology commitment: invest in advanced mining technologies, mechanization, and digital monitoring to raise productivity and safety standards.
• Environmental balance: pursue emissions control, efficiency upgrades, and gradual adoption of low-emission technologies consistent with China's energy transition pathways.
• Financial stewardship: prioritize profitability, cash-flow stability, and prudent leverage to sustain long-term shareholder value.
• Social responsibility: support local employment, community infrastructure, education, and healthcare initiatives in mining and power communities.

• Operational efficiency: continuous yield improvement in coal mines and heat-rate reduction in thermal plants to lower unit costs and emissions per MWh.
• Value-chain integration: tighter coordination between mining output and power plant fuel supply to reduce logistics cost and inventory risk.
• Capital allocation: maintain conservative leverage, prioritize projects with payback within industry-standard horizons, and preserve cash flow for dividend stability.
• Innovation & safety: deploy intelligent mining systems, remote monitoring, and automation to lift productivity and reduce accident rates.
• Environmental upgrades: retrofit desulfurization/denitrification and particulate controls; pilot low-carbon fuels or co-firing where feasible.
• Community investment: target local hiring, vocational training, and funding for health and education in host communities.

• Employment: provide stable jobs in mining and power operations; vocational training programs for local workforce upskilling.
• Community development: infrastructure grants, local procurement preferences, and targeted educational scholarships.
• Health & safety: ongoing investment in occupational health facilities and emergency response capability for mining communities.
• Investor relations: regular disclosure of operational and financial performance, dividend policy aligned with free cash flow.

Anhui Hengyuan Coal-Electricity Group Co., Ltd. (600971.SS) - Mission Statement

• Provide stable, cost-effective electricity and thermal energy to industrial and residential customers across Anhui and adjacent provinces.
• Optimize coal mining, processing, and power generation through digitalization, automation, and safety-first practices.
• Drive clean energy adoption via high-efficiency generation, emissions control systems, and gradual incorporation of renewables.
• Create lasting value for shareholders through disciplined capital allocation, margin improvement, and steady dividend policy.
• Foster employee development, workplace safety, and community engagement aligned with regional socio-economic development.

• Operational excellence: reduce unit coal-to-power heat rate and improve plant availability to exceed industry averages.
• Technological integration: deploy advanced control systems, predictive maintenance, and digital twins across major assets.
• Clean energy transition: lower SO2/NOx emissions, increase waste-heat recovery, and pilot renewables and storage projects.
• Internationalization: explore overseas coal logistics, equipment exports, and joint ventures for technology sharing.
• Sustainable value creation: balance EPS accretion with environmental investments and social impact programs.

• Energy efficiency: retrofit of key units completed or underway to improve heat rates by targeted 3-5% per retrofitted unit.
• Emissions control: investment in flue gas desulfurization (FGD) and selective catalytic reduction (SCR) across fleet to meet stricter standards.
• Digital transformation: roll-out of centralized dispatch, predictive maintenance, and ERP integration covering >60% of assets.
• Renewables pilot: small-scale PV + storage pilots integrated with industrial parks to evaluate dispatchable hybrid models.
• Capital discipline: maintain net-debt/EBITDA metrics within target band to preserve investment-grade credibility with lenders.

• Adherence to listed-company disclosure norms on the Shanghai Stock Exchange; regular sustainability and safety reporting.
• Board oversight of ESG targets, with cross-functional committees for safety, environment, and technology.
• Community engagement programs focused on local employment, mine reclamation, and educational support.

Anhui Hengyuan Coal-Electricity Group Co., Ltd. (600971.SS) - Vision Statement

• Integrity - Transparency and accountability guide governance, contracts, and reporting across all subsidiaries.
• Innovation - Continuous investment in process optimization, equipment upgrades, and digital systems to raise safety and productivity.
• Environmental responsibility - Commitment to emissions reduction, land reclamation, and water management to minimize ecological footprint.
• Operational excellence - Rigorous quality control, maintenance regimes, and performance KPIs to ensure reliable coal and power output.
• Social responsibility - Active engagement in local development, targeted poverty alleviation, and community welfare projects.
• People-oriented culture - Prioritizing workforce safety, training, and well-being to retain and develop talent.

• Coal production and power generation efficiency: target heat-rate improvement of 6% by 2028 through equipment upgrades and AI-based dispatch.
• Digital transformation: roll-out of plant-level SCADA upgrades and predictive maintenance at 8 major units by 2025.
• CAPEX allocation: ~RMB 1.1 billion annually prioritized for efficiency and emissions-control projects (2024-2026).

• Emissions control: full retrofit of flue-gas desulfurization and denitrification systems across core plants completed by 2025; particulate emissions to meet provincial Class A standards.
• Land reclamation: progressive reclamation of 320 hectares of post-mining land since 2018; goal of 500 hectares by 2028.
• Water management: closed-loop water reuse increased to 72% in 2023, target 85% by 2027.

• Local employment: directly employing ~8,700 staff (2023) with additional indirect employment in supplier and contractor networks.
• Community investment: RMB 45 million deployed in education, healthcare, and rural revitalization projects since 2020.
• Poverty alleviation: targeted programs supporting over 1,200 beneficiary households in Anhui province with vocational training and micro-enterprise grants.

• Training & development: annual training hours per employee averaged 48 hours (2023); leadership pipeline program for middle management expanded.
• Health & safety: occupational health screenings for 100% of frontline workers; implementation of behavior-based safety programs across sites.
• Compensation & benefits: competitive salary bands, performance-linked bonuses, and enhanced family-support policies for employees in mining communities.

• Compliance framework: internal audit, risk management, and anti-corruption policies enforced with external auditor reviews annually.
• Transparency: quarterly disclosures of operational and safety KPIs integrated into investor communications.
• Stakeholder engagement: regular consultations with local governments, regulators, and community representatives to align development plans and mitigation measures.