| Taiyuan Coal Gasification Group | |
| Type: | state-owned enterprise |
| Former Name: | Taiyuan Coal Gasification Corp. |
| Hq Location: | 29 Heping South Road, Wanbailin District |
| Hq Location City: | Taiyuan |
| Hq Location Country: | China |
| Key People: | He Tiancai (Chairman) |
| Services: | natural gas distribution network |
| Revenue Year: | 2015 |
| Income Year: | 2015 |
| Net Income Year: | 2015 |
| Assets Year: | 2015 |
| Equity Year: | 2015 |
| Parent: | JAMG |
| Footnotes: | in a consolidated basis |
Taiyuan Coal Gasification (Group) Co., Ltd. is a Chinese state-owned coal mining conglomerate based in Taiyuan, Shanxi. The company was owned by State-owned Assets Supervision and Administration Commission (SASAC) of . However, Shanxi SASAC granted fellow state-owned enterprise Jincheng Anthracite Mining Group (JAMG) to manage their stake since 2011.
Taiyuan Coal Gasification Group was the largest shareholder of Taiyuan Coal Gasification Co., Ltd. (TCGC,) for 49.45% stake until 2016. In September 2016 Taiyuan Coal Gasification Group sold 24.26% stake of the listed company to JAMG for (CN¥6.87 per share).[1] [2] A backdoor listing was planned for a subsidiary of JAMG, which produces coal mine methane. The assets and liabilities of the listed company before 31 January 2016 would sold back to Taiyuan Coal Gasification Group.
In 2005 Taiyuan Coal Gasification Group was in the enterprise list in line with Coking Industry Access Condition (first batch) of the National Development and Reform Commission.[3] [4] According to a publication of the National Energy Administration,[5] Taiyuan Coal Gasification Group had a coal mining capability of 6.25 million tons per year in 2015 (5.80 million tons for the listed company), despite the list was incomplete (number 156 to 163 mine of the list, except 159). The listed company had produced coal of 4.38 million tons in 2015, including raw coal, middling coal and refined coal.
According to Dagong Global Credit Rating, the group sold natural gas to citizen below the cost the group bought from other companies in 2015.[6] The group was the natural gas and coal gas provider for Taiyuan (excluding Gujiao), Jinzhong and Linfen.[7]
Taiyuan Coal Gasification Corporation was incorporated in 1981. In 1998 it was re-incorporated as a limited company as Taiyuan Coal Gasification (Group) Co., Ltd. under the new Company Law of China, with China Cinda Asset Management and China Huarong Asset Management became minority shareholders due to debt-to-equity swap. A subsidiary Taiyuan Coal Gasification Co., Ltd. was also incorporated on 22 December 1998, receiving a coal mine in Jialequan, Gujiao, a coal preparation plant in the Wanbailin District, Taiyuan and a coking factory from the parent company, and became a publicly traded company (on Shenzhen Stock Exchange) in 2000. Taiyuan Coal Gasification Group retained an old coal gas factory and a coal mine which produces low grade thermal coal with sulfur content >2% at that time.[8] The group later sold several more assets to the public company. Although the group also bought back the coking factories in 2013 as they were forced to close down by the urban renewal of Taiyuan in 2012.
After a heavy net loss in 2015, all of the assets and liabilities of the listed company (mostly coal mines and other equity investments) would be sold back to the parent company in 2016, in order to allow Jincheng Anthracite Mining Group to backdoor listing a subsidiary in the stock exchange.
Taiyuan Coal Gasification Group also acquired Shanxi Shenlong Energy Coking Co., Ltd., a coking factory and the coal gas provider in Jinzhong in 2011, for .[9] Xuangang (a subsidiary of Tangsteel Group), the second largest shareholder of Shenlong Energy Coking, had invited company to make an offer for their 33.21% stake in 2007, for a base price of .[10]
Taiyuan Coal Gasification Co., Ltd. was incorporated on 22 December 1998 as Shanxi Shenzhou Coal Electricity Coking Co., Ltd., which produces coal and coke at that time. The capital raised by IPO was used to build a coal gas factory complex as well as acquiring three additional coal mines: Luyukou,[8] Donghe (the group acquired it in 1999)[11] from the parent company and Lishi from Shanxi Top Energy for ;[12] The coal gas factory complex was a joint venture between the parent company and the listed company in a 53–47 ratio, which the parent company had leased their portion to the listed company in 2004 for per year. The deal was renewed for a year in 2006.[13] In 2007, the listed company acquired the factory from the parent company (The factory was also known as the number 2 coking factory, which coal gas was the by-product from producing coke) for, with the price of the land lease was converted to new shares.[14] [15] The listed company also acquired coal preparation plants in Lishi and Donghe from the parent company in 2006 (for)[16] and 2007 (for).[17] In 2008 a coal gangue thermal power station was acquired from the parent company for .[18]
In August 2012, the coal gangue thermal power station and the number 2 coking factory of the listed company were closed down due to urban renewal policy of Taiyuan.[19] The number 1 coking factory had closed down in April 2012.[20] Partially due to the closing down, the revenue of the company had decreased from in 2011 to in 2012, as the company no longer produce coke.[21] In 2013 the listed company invested in a local railway company for .[22] In the same year the closed coking factories were sold back to the parent company for .[23] [24] Due to the fall in price of coal, and the closing of the coal preparation plant in the Wanbailin District,[25] the revenue of the listed company had dropped even further to in 2013,[26] in 2014 [27] and in 2015. The net assets of the listed company were also decreased from in 2013 to just in 2015.
As at 31 December 2015, despite the listed company retained the name "coal gasification", the listed company only produce coal as their product, which sold coal to Benxi Steel Group, Shandong Iron and Steel Company, Tangshan Yanshan Iron and Steel, as well as sold to sister company Shanxi Shenlong Energy Coking as their top 4 customers (36.34% of the sales volume).[28]
In 2016, a plan to sell all of the assets and liabilities at 31 January 2016 of the listed company to Taiyuan Coal Gasification Group was announced. At the same time the shell company would be used as a backdoor listing of a subsidiary of Jincheng Anthracite Mining Group (JAMG). JAMG already acquired 24.26% stake of the listed company from Taiyuan Coal Gasification Group before the finalization of the backdoor listing.
In April 2017 the backdoor listing and recapitalization was completed. JAMG became the largest shareholder for 40.05% shares. It was followed by the Taiyuan Coal Gasification Group for 13.38% and China Cinda Asset Management for 7.02%.[29]
In 2008 China National Coal Group (China Coal Group) was the largest shareholder of Taiyuan Coal Gasification Group. China Coal Group excluded Taiyuan Coal Gasification Group from injecting to listed company China Coal Energy due to Taiyuan Coal Gasification Group has provide coal gas to citizen in not-for-profit basis, as well as half the stake was held by other state-owned enterprise.[30] China Coal Group later acquired 3.9% stake from China Cinda to become the controlling shareholder, but in 2013 16.18% stake was transferred to State-owned Assets Supervision and Administration Commission (SASAC) of, making Shanxi SASAC became the largest shareholder, jumping from the second.
| Taiyuan Coal Gasification Group | Taiyuan Coal Gasification Company | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Revenue | Net profit | Total assets | Equity | Group % | Revenue | Net profit | Profit to group | Total assets | Equity | Equity to group |
| 2008[31] | ¥225 million | ¥7.3 billion | ¥1.975 billion | 49.45% | ¥4.735 billion | ¥684 million | ¥338 million | ¥4.815 billion | ¥2.563 billion | ¥1.267 billion | |
| 2009[32] | ¥4.305 billion | ¥74 million | ¥7.7 billion | ¥2.095 billion | ¥3.248 billion | ¥380 million | ¥188 million | ¥5.218 billion | ¥2.795 billion | ¥1.382 billion | |
| 2010[33] | ¥5.153 billion | ¥92 million | ¥9.9 billion | ¥2.188 billion | ¥3.523 billion | ¥234 million | ¥116 million | ¥6.672 billion | ¥2.931 billion | ¥1.449 billion | |
| 2011[34] [35] | ¥6.487 billion | ¥71 million | ¥12.1 billion | ¥2.320 billion | ¥3.779 billion | ¥207 million | ¥102 million | ¥7.620 billion | ¥3.160 billion | ¥1.563 billion | |
| 2012[36] | ¥12.507 billion | ¥16.6 billion | ¥2.082 billion | ¥3.312 billion | ¥9.454 billion | ¥2.710 billion | ¥1.340 billion | ||||
| 2013[37] | ¥16.429 billion | ¥20.1 billion | ¥1.539 billion | ¥2.086 billion | ¥45 million | ¥22 million | ¥11.709 billion | ¥2.763 billion | ¥1.366 billion | ||
| 2014[38] | ¥13.184 billion | ¥28.0 billion | ¥979.2 million | ¥1.724 billion | ¥15.431 billion | ¥1.832 billion | ¥906 million | ||||
| 2015[39] | ¥7.834 billion | ¥25.9 billion | ¥1.655 billion | ¥12.504 billion | ¥216 million | ¥107 million | |||||