Breaking Down Pingdingshan Tianan Coal. Mining Co., Ltd. Financial Health: Key Insights for Investors

Founded in 2001 and listed on the Shanghai Stock Exchange in 2010 under ticker 601666, Pingdingshan Tianan Coal Mining Co., Ltd. has grown into a major coal producer headquartered in Pingdingshan, Henan, operating seventeen production mines and three coal preparation plants by 2025 and delivering 27.41 billion yuan in operating revenue in 2024; as a subsidiary of China Pingmei Shenma Energy and Chemical Group it combines state-backed scale with an insider ownership of 45.77% and institutional holdings of 16.82%, a July 2025 market capitalization near 18.59 billion yuan, a trailing P/E of 11.21, and a recent October 2025 buyback of 104 million shares (4.20%) for 1 billion yuan-while first-half 2025 revenue stood at 10.12 billion yuan (down 37.95% year-on-year), the company sustains revenue through smelted clean coal and blended coal sales, strategic joint ventures such as the October 2024 50 million yuan tie-up, long-term customer contracts, investments in cleaner coal technology and logistics, and a domestic market share around 12% as it appears in the SSE 180, CSI 300 and CSI 100 indexes with analysts projecting roughly an 8% CAGR over the next five years-read on to unpack its history, ownership, operations and the mechanics of how it makes money.

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): Intro

• Founded in 2001 and headquartered in Pingdingshan, Henan Province, China.
• Specializes in coal mining, washing, processing and sales - principal products include smelted clean coal and blended coal.
• Listed on the Shanghai Stock Exchange in 2010 under the ticker 601666.SS.
• By 2025 operates seventeen production mines and three coal preparation plants.
• Recognized as a constituent of SSE 180, CSI 300 and CSI 100 indexes.

• Publicly traded entity (Shanghai Stock Exchange, 601666.SS) with institutional and retail shareholders.
• Included in major domestic indexes (SSE 180, CSI 300, CSI 100), which drives index-based institutional ownership and ETF flows.
• Operational subsidiaries hold and manage individual mines and coal-prep facilities; corporate control retained through listed parent company.

• Deliver stable, market-aligned coal production focused on higher-value products (smelted clean coal, blended coal).
• Optimize extraction and preparation efficiency via modernization of mines and preparation plants.
• Maintain compliance with national energy and environmental regulations while securing supply for industrial and power customers.

• Exploration & mine development: geology, shaft and roadway construction, safety systems.
• Extraction: underground (and where applicable surface) mining operations across 17 production mines.
• Coal preparation: three coal washing/processing plants that produce smelted clean coal and blended coal for industrial users.
• Sales & logistics: direct sales to power plants, steelmakers and industrial customers; use of rail and road logistics for distribution.

• Operating revenue: approximately ¥27.41 billion (2024).
• Production footprint: 17 production mines and 3 coal preparation plants (2025 operational count reflects recent consolidation/expansion).
• Capital markets: Listed 2010; constituent of SSE 180, CSI 300, CSI 100 indexes - ticker 601666.SS.

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): History

• Parent: subsidiary of China Pingmei Shenma Energy and Chemical Group (state-owned enterprise).
• Market capitalization (Jul 2025): ~18.59 billion yuan.
• Trailing P/E ratio: 11.21 (moderate valuation vs. earnings).
• Insider ownership: ~45.77% of shares.
• Institutional ownership: ~16.82% of shares.
• Share repurchase (Oct 2025): bought 104 million shares (4.20% of equity) for ~1 billion yuan.

• How it works - core activities: underground and open-pit coal mining, coal washing/processing, thermal and coking coal sales, logistics and limited downstream chemical processing.
• How it makes money: sale of mined coal (long-term contracts and spot sales), margin from coal processing, logistics fees, and occasional asset/land-related transactions; financial performance reflected in P/E and market cap above.
• Strategic posture: as a state-affiliated miner, benefits from integrated supply chains, provincial demand for thermal coal, and periodic capital actions (e.g., share repurchase) to support equity value.

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): Ownership Structure

• Mission and values: committed to providing high-quality coal products to support China's energy needs.
• Environmental responsibility: produces thermal coal with low sulfur and phosphorus to meet national environmental standards.
• Safety: maintains a consistently strong safety record since establishment, with continuous safety investments and training.
• Operational efficiency: prioritizes cost reduction and productivity improvements across mining and logistics.
• Innovation: pursues partnerships to develop cleaner-coal technologies and explores new revenue streams such as coal chemical integration and power generation linkages.
• Sustainable development: balances economic growth with environmental stewardship through emissions controls and land reclamation programs.

• How it makes money: mining and selling thermal coal to utilities and industrial customers, trading and logistics services, and incremental revenue from coal-to-chemicals or captive power projects.
• Key cost drivers: mining unit costs, land reclamation and environmental compliance, transportation (rail/road), and royalties/royalty-like fees.
• Revenue mix: spot and long-term sales contracts with provincial power companies and industrial buyers; higher-margin specialty low-sulfur grades prioritized.

• Ownership snapshot (approximate):
• Pingdingshan Coal Group (state-owned parent): ~40%
• Public float (A-share investors): ~50%
• Institutional & strategic investors: ~10%

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): Mission and Values

• Core mission: supply stable, high-quality coal to power generation and industrial customers while improving safety and reducing environmental impact.
• Values: safety first, operational excellence, customer focus, innovation and sustainability.
• Strategic priorities: maintain reliable mining output, expand value-added processing, strengthen logistics and invest in cleaner coal technologies.

• Asset base: operates seventeen production mines and three coal preparation plants to ensure continuous feedstock and product grading consistency.
• Mining and processing technologies: deploys mechanized longwall and fully mechanized room-and-pillar methods, automated haulage and modern coal-washing and sizing circuits to improve yield and product quality.
• Logistics network: integrated rail-road transfer yards and dedicated loading facilities link mines and prep plants to regional rail lines and river/port terminals for domestic and export delivery.
• Customer relationships: long-term contracts with provincial power utilities, steelmakers and industrial traders underpin predictable offtake and pricing stability.
• R&D and cleaner coal: ongoing R&D investments target efficiency improvements, methane capture, dust control and higher-efficiency coal washing to lower emissions intensity per tonne.
• Safety and environment: compliance with national mine safety standards, environmental impact controls at preparation plants (tailings and water treatment) and progressive reclamation programs.

• Mine output sales: the core revenue stream-raw and washed coal sold under short- and long-term contracts to utilities, steelmakers and traders.
• Processing premium: coal washing and sizing enable higher-margin, higher-spec products (lower ash, specific calorific values) sold at a premium.
• Logistics and handling fees: in-house logistics efficiencies reduce third-party costs and can generate incremental margin through handling services.
• By-products and services: coal blending, coal trading and occasional sales of non-coal minerals or recovered gases (where applicable).

• Mining unit costs: driven by seam depth, mechanization level, labor, and fuel/electricity prices.
• Processing yield and wash plant recovery rates: higher recovery improves tonnes sold per raw input and margins.
• Freight and logistics: proximity to rail and ports materially affects delivered cost and competitiveness.
• Commodity pricing environment: benchmark thermal and metallurgical coal prices set market realizations; long-term contracts smooth volatility.
• Regulatory and environmental compliance costs: investments in safety, tailings management and emissions control affect capital and operating expenditures.

• Automation and monitoring: adoption of remote monitoring, sensor-based equipment and automated dispatch to improve safety and productivity.
• Cleaner coal tech: enhanced washing, desulfurization-friendly product lines and pilot projects for methane capture and utilization.
• R&D focus areas: seam detection and geotechnical modeling for safer, higher-yield extraction; process optimisation for wash plants.
• Environmental management: wastewater treatment at prep plants, tailings stabilization, progressive land reclamation and biodiversity measures at closed sites.

• Long-term offtake: multi-year agreements with provincial utilities and industrial customers provide demand certainty.
• Logistics partners: strategic access to rail operators and port terminals reduces delivery lead times and demurrage risk.
• Financial and capital partners: bank and capital-market relationships support working capital and capex for mine development and remediation.

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): How It Works

• Core products: smelted clean coal, blended thermal coal, and specialty coal blends for industrial users.
• Primary customers: power utilities, large industrial manufacturers (steel, cement, chemicals), regional distributors and trading houses.
• Distribution channels: direct long‑term supply contracts, spot sales via exchanges, and third‑party trading partners.

• Upstream: mining leases, extraction, coal preparation plants (washing, crushing, sizing).
• Midstream: blending, quality certification, packaging and inventory management.
• Downstream: contract sales to utilities/industries, spot market transactions, and value‑added logistics services.

• H1 2025 operating revenue: 10.12 billion yuan (year‑on‑year decrease of 37.95%).
• Strategic JV: 50 million yuan joint venture with China Power Investment Xinjiang Energy and Chemical Industry Group Hefeng announced in October 2024 to broaden market access and product mix.
• Parent support: subsidiary of China Pingmei Shenma Energy and Chemical Group - access to established supply chains, shared procurement and operational synergies.
• Market stature: constituent stock of SSE 180, CSI 300 and CSI 100 indexes, reflecting significant liquidity and institutional investor attention.
• Shareholder returns: engaged in share repurchase programs (notably an announced repurchase in October 2025) to enhance shareholder value and EPS.

Pingdingshan Tianan Coal. Mining Co., Ltd. (601666.SS): How It Makes Money

• Core operations: open-pit and underground coal mining, coal washing and coking byproducts sold under long-term and spot contracts to domestic utilities and steel producers.
• Trading & logistics: third‑party coal trading, port and rail logistics fees, and tolling services that improve margins and cash flow timing.
• New revenue streams: commercialization of cleaner-coal technologies via partnerships with energy firms, and asset securitization vehicles to finance overseas expansion.

• Market position & outlook: As one of China's largest coal producers (≈12% share), the company benefits from scale in procurement, dispatch to large offtakers and bargaining power on logistics - supporting modest valuations (P/E 11.21) relative to peers.
• Growth drivers: an expected revenue CAGR of ~8% over five years tied to sustained domestic energy demand, targeted international sales and monetization of cleaner-coal projects.
• Capital strategy: active pursuit of asset securitization and overseas financing platforms to lower domestic funding dependence and accelerate international footprint.
• Strategic partnerships: collaborations with energy firms to develop cleaner coal technologies that can create differentiated product offerings and potential licensing or service revenues.