Zhengzhou Coal Industry & Electric Power Co., Ltd. posted a wider net loss in the first half of the year as coal output and sales declined amid changing geological conditions at some mining faces.

The company reported a net loss attributable to shareholders of 339 million yuan ($50.44 million)  in January-June, compared with a loss of 224 million yuan in the same period last year. Operating revenue fell 23.40% year on year to 1.41 billion yuan, with basic earnings per share at -0.2782 yuan.

The company attributed the weaker performance to lower coal production, sales volumes and coal quality, which reduced coal sales revenue. Coal mining and sales remain its core business, generating 1.21 billion yuan in revenue during the period, down 25.31% from a year earlier, and still accounting for 86.17% of total revenue.

Coal output totaled 2.86 million tonnes in the first half, down 22.28% from 3.68 million tonnes in the same period of the previous year.

In the second quarter alone, the company recorded operating revenue of 675 million yuan, down 22.51% year on year, while the net loss narrowed to 143 million yuan from 164 million yuan a year earlier.

Operating costs fell 20.27% year on year to 1.23 billion yuan. Selling expenses declined 15.97% to 28.89 million yuan, administrative expenses rose 16.72% to 230 million yuan, financial expenses fell 6.21% to 93.49 million yuan, and research and development expenses dropped 36.95% to 21.06 million yuan.

Investment income turned negative at -1.48 million yuan, versus 51.06 million yuan in the same period last year, mainly because associate company Fusheng Aluminium saw profitability decline amid lower alumina prices, reducing equity-method investment income by 54 million yuan year on year.

Given the first-half loss, the company said it will not propose a profit distribution plan or cash dividend for the period.