Jiayou International disclosed that in the first three quarters of 2024, the company realized operating revenue of 6.544 billion yuan, up 28.30% year-on-year; and achieved net profit attributable to the mother of 1.089 billion yuan, up 44.23% year-on-year. In the third quarter, the company realized operating income of 1.904 billion yuan, down 16.98% year-on-year; and realized net attributable profit of 322.9 million yuan, up 31.18% year-on-year.

The quarterly report said that the net attributable profit growth is mainly due to the growth of business scale and profit growth, did not expand the explanation.

According to the previously released annual report, Jiayou international business includes cross-border multimodal transportation integrated logistics services, supply chain trade, international dry port operation. According to the industry, the first major segment is Mongolian coal trade.

Jiayou International has said that the company's Mongolian coking coal business mainly involves a series of integrated cross-border logistics services such as Mongolian section transportation, customs clearance at ports, warehousing, domestic section transportation, etc., and the company's various subsidiaries provide specific operations for this business according to the division of labor.

As far as the latest quarterly report is concerned, the company's gross profit in the third quarter increased by 30.8% year-on-year to 440 million yuan, but dropped by 23.6% sequentially. This is obviously a certain distance from Jiayou International's expectations.

Jiayou International had said on the investment interactive platform that in the first half of 2024, the bilateral trade volume between China and Mongolia increased by 18.8% year-on-year; the import and export volume of Erlianhot and Ganqimao Du ports hit a new record high, which has solidified the foundation of the company's cross-border integrated logistics business between China and Mongolia. Through the equity cooperation in coal development with Hong Kong-listed Mongolian Mining Corporation and the signing of long-term cooperation agreement on coal, the company has explored the highly competitive business model of “resources + trade + logistics”, relying on the advantages of scarce resources of coal resources and core logistics assets in the ports. The company has explored a highly competitive business model of “resources + trade + logistics”, which, relying on the advantages of coal resources and the scarce resources of core logistics assets at the ports, will stimulate the growth momentum of “trade scale” and “logistics service”, thus further consolidating the core competitiveness of the company in the cross-border logistics market of China and Mongolia and enhancing profit margin.

The main reason for the lower-than-expected performance in the third quarter was also the overall situation of the domestic coking coal market. Weak domestic demand for coking coal in the third quarter, Mongolia coal transportation volume weakened compared to the ring, the main coking coal supply chain trading profit declined compared to the ring.

Data showed that the average daily throughput of Meng coal in the third quarter was about 896 cargos/day, down 12.4% year-on-year and 18.3% sequentially; the average price of short-term orders was about RMB101/ton, down 37.6% year-on-year and up 56.0% sequentially.

Taking Ganchimodu Port as an example, from January to September Ganchimodu Port imported 29.85 million tons of coal, up 13% year-on-year, of which 9.55 million tons of coal were imported in the third quarter, down 11% year-on-year. At the same time, coking coal prices fell, the average price of coking coal at Ganqimodu Port in the third quarter fell 13% year-on-year, down 6% from the previous year.

However, since the end of September, with the volume and price of Meng coal bottomed out upward, October 21 - October 27, the average daily throughput of Meng coal reached 1,195 cars / day, short-term shipping price of 106 yuan / ton, is expected to later supply chain of Meng coal trading business earnings are expected to improve ring.

Some institutions even pointed out that in the medium and long term, in 2024, Jiayou International and MMC signed a new long term agreement on Mongolia coal, the resource advantage is more prominent, “resources + trade + logistics” business model continues to deepen, the scale of coking coal trade integration is expected to improve.

Article Source：sxcoal.com