Shanxi Meijin Energy Co.,Ltd.'s convertible bond recently experienced significant volatility, with its price falling below the 100-yuan face value, indicating waning investor confidence. The bond's market performance is closely tied to the company's weak fundamentals, as its financial results have continued to decline in recent years, accompanied by a steady drop in its stock price.
In 2025, Shanxi Meijin Energy Co.,Ltd. reported a year-on-year revenue decrease of 5.58% to 17.969 billion yuan, marking the third consecutive annual decline since 2023. Net profit attributable to shareholders was -1.123 billion yuan, representing the second year of losses since 2024. For the first quarter of 2026, the company's revenue saw a slight increase of 3.32% year-on-year, but losses persisted.
Over the past few years, declining coal and coke prices have led to reduced profitability across the industry, exacerbating Shanxi Meijin Energy Co.,Ltd.'s own profit challenges and debt repayment pressures. In 2025, the company's gross margin plummeted to 5.46% from 30.25% in 2021, dropping further to 1.86% in the first quarter of 2026. The debt ratio remained high at around 65%, and while accounts payable decreased slightly, they still exceeded ten billion yuan.
More concerning is that, as of the end of the first quarter of 2026, Shanxi Meijin Energy Co.,Ltd.'s monetary funds on the books fell to 2.313 billion yuan, already lower than the 2.789 billion yuan outstanding balance of its convertible bonds that have not been converted into shares.
At the same time, the interest rate on Shanxi Meijin Energy Co.,Ltd.'s convertible bonds rises annually from 0.3% in the first year to 3.0% in the sixth year. This trend indicates that the company's future financing costs will continue to increase, placing higher demands on profitability and cash flow. Coupled with its current interest-bearing debt of approximately 9.5 billion yuan, the company's financial chain is under severe strain.
As a major player in the coal and coke industry, Shanxi Meijin Energy Co.,Ltd. has been actively seeking transformation, with hydrogen energy identified as a key strategic direction. The company's foray into hydrogen energy began in 2017 when it acquired equity in Foshan Feichi Automobile (later renamed "Feichi Technology"), gaining entry into hydrogen fuel cell vehicle manufacturing and officially entering the hydrogen energy sector. This move marked the beginning of its transition from a coal and coke enterprise to a comprehensive energy service provider.
The company has repeatedly stated that it has established a full industrial chain system covering "production, storage, transportation, refueling, and application," and is actively promoting demonstration operations and industrial synergy in related application scenarios, claiming certain industrial foundations and first-mover advantages.
However, in 2025, Shanxi Meijin Energy Co.,Ltd.'s hydrogen energy business revenue plummeted by 48.3% year-on-year to 409 million yuan, with the gross margin dropping to -31.44%, a further decline of 11.37 percentage points compared to the previous year.
In 2022, Shanxi Meijin Energy Co.,Ltd. issued 3.59 billion yuan in convertible bonds to fund multiple expansion projects and supplement working capital.
Subsequently, the scheduled completion date for the Luanzhou Meijin New Energy Co., Ltd. 14,000 Nm³/h coke oven gas-to-hydrogen project was postponed from the original plan of December 2025 to December 2026. The first phase of the Meijin Hydrogen Energy Headquarters Base project was delayed from June 2025 to June 2026, while the hydrogen fuel cell power system and hydrogen fuel commercial vehicle component production project (Phase I, Stage 1) was completely terminated. Since 2017, the hydrogen energy transformation story that Shanxi Meijin Energy Co.,Ltd. has been promoting to the market is increasingly being questioned by investors.
In 2024, Shanxi Meijin Energy Co.,Ltd. planned to issue shares at 3.61 yuan per share to acquire 51%, 49%, and 49% equity stakes in Linxian Jinyuan Coal Mine Co., Ltd., Shanxi Fenxi Zhengwang Coal Industry Co., Ltd., and Shanxi Fenxi Zhengcheng Coal Industry Co., Ltd., respectively, from its controlling shareholder, Shanxi Meijin Energy Group Co., Ltd., and its affiliates. However, this private placement and acquisition of major shareholder assets ultimately failed.
To date, the major shareholder, Shanxi Meijin Energy Group Co., Ltd., has pledged all of its 1.646 billion shares in the listed company. Both the listed company and its major shareholder are undoubtedly facing significant financial pressure.
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