Meijin Energy's Management "Blood Transfusion" - What Are Its Prospects for Hydrogen Energy Transformation?

(Source: China Economic Micro Energy)

China Economic News Reporter Li Zhe Beijing Report

Recently, Meijin Energy (000723.SZ) announced that Vice President Yao Peng has submitted his resignation letter due to personal reasons. After leaving, he will no longer hold any positions in the company or its subsidiaries. In October 2025, Yao Jinjiang, who previously served as General Manager of Meijin Energy’s Coal Business Division, also resigned from the company’s board for personal reasons.

The China Business Journal noted that both Yao Peng and Yao Jinjiang have held long-term executive roles at Meijin Energy, mainly focusing on coal and coal chemical businesses. Meanwhile, Zhao Jia, who succeeded Yao Jinjiang as a member of Meijin Energy’s Sustainability Development Committee, has a background more closely related to hydrogen energy.

Amid management “reshuffling,” Meijin Energy’s performance is under pressure. The company expects a net loss of 850 million to 1.25 billion yuan in 2025, marking its second consecutive year of net loss since 2024.

Executive Resignations

According to previously disclosed appointment information, Yao Peng’s term was from August 28, 2023, to August 27, 2026. Meijin Energy stated that Yao Peng’s resignation will not adversely affect the company’s operations or development.

Public records show that Yao Peng was born in September 1989, with a college diploma. He has served as General Manager of Jinhuitong Microloan Co., Ltd., Legal Representative of Shanxi Meijin Coal Gasification Co., Ltd., Head of the company’s Supply Department, and Minister of Supply, among other roles. He was appointed Vice President of Meijin Energy in 2023.

Yao Peng first joined the senior management team of Meijin Energy in July 2020. Shortly thereafter, his spouse, Han Linnan, bought and sold shares of Meijin Energy through a personal securities account, attracting regulatory attention.

According to the “Decision on Issuing a Warning Letter to Yao Peng” (No. [2021] 2) issued by the Shanxi Bureau of the China Securities Regulatory Commission, between September 8, 2020, and February 19, 2021, Han Linnan engaged in short-term trading of Meijin Energy shares through his personal securities account. On September 8, 2020, he bought 293,800 shares in two transactions, and sold them on February 19, 2021, making a profit of 335,000 yuan.

Meijin Energy stated that Yao Peng was unaware of his spouse’s stock transactions and did not disclose company operational information to him. Since Han Linnan was unfamiliar with relevant regulations and did not seek Yao Peng’s opinion on the stock trades, this constituted short-term trading. The trades were personal investment decisions based on secondary market judgment, with no insider information involved. Yao Peng apologized to investors and promised to regulate his and his close relatives’ stock trading behaviors.

Before Yao Peng’s departure, in October 2025, another director of Meijin Energy resigned. At that time, the company announced that Yao Jinjiang resigned from the board for personal reasons and would not hold other positions in the company afterward.

Yao Jinjiang was born in November 1992 and graduated with a master’s degree from University College London in 2017. His work experience includes roles as a consulting analyst at Shanghai Jinqiu Information Technology Co., Ltd., Chairman of Linxian Jinyuan Coal Mine, and later as a director, vice president, and General Manager of the Coal Business Division at Meijin Energy.

Notably, after Yao Jinjiang’s resignation, Zhao Jia took over his position as a member of Meijin Energy’s Sustainability Development Committee. Zhao Jia, born in December 1982, has served as General Manager of Meijin Financing Leasing Co., Ltd., General Manager of Meijin (Beijing) Hydrogen Energy Technology Co., Ltd., and General Manager of Beijing Meijin Jiachuan Private Equity Fund Management Co., Ltd., as well as Deputy Director and Director of the company’s Capital Operations Department. He is currently a director and secretary of the board of Meijin Energy. His background is more oriented toward hydrogen energy and capital operations.

Both Yao Peng and Yao Jinjiang joined Meijin Energy’s senior management in 2020, with their work experience mainly focused on coal and coal chemical sectors.

Now, with both having left, and their successors having backgrounds in hydrogen energy, this personnel change is seen as a signal of strategic adjustments in Meijin Energy’s business layout. The reporter contacted Meijin Energy for comment but has not received a response as of press time.

Annual Losses

According to Meijin Energy, the company expects a net loss of 850 million to 1.25 billion yuan in 2025, with a non-recurring net loss of 885 million to 1.285 billion yuan. This marks its second consecutive year of net loss after 2024.

The company explained that the losses in 2025 were mainly due to market conditions, with coal and coke prices trending downward throughout the year, putting continuous pressure on gross profit margins of its main products. Meijin Energy stated it will closely monitor macroeconomic trends and industry market dynamics, maintain steady operations, and deepen refined management to improve operational efficiency and risk resistance.

At the 2024 earnings presentation, Meijin Energy analyzed that the main reasons for the losses were structural imbalances between the prices and costs of its two core products, coal and coke. Both sales prices declined more than the corresponding decrease in costs, significantly narrowing gross profit margins. The coke business was the primary source of operational losses.

The price trend of coking coal also reflects the industry pressures faced by Meijin Energy. In 2021, coking coal futures prices once reached a record high of 3,878 yuan per ton. Since then, affected by supply-demand dynamics and the shift to clean energy, prices have fluctuated downward. From December 2023 to June 2025, the main contract prices of coking coal remained in a downward channel, with a low of 726 yuan per ton in May 2025. As of March 18, 2026, the main contract price of coking coal closed at 1,156.5 yuan per ton.

Moody’s recently released a report titled “China’s Coal Industry: Coal Still a Key Part of China’s Energy Transition,” which states that China is the world’s largest producer and consumer of coal, accounting for over half of global coal production and consumption. Ongoing decarbonization measures suppress coal demand growth, but for energy security reasons, domestic production remains high. While domestic output largely meets consumption needs, China still mainly imports coal from Indonesia, Australia, Russia, and Mongolia to cope with demand fluctuations.

The report also notes that coal mining faces increasing environmental scrutiny, with many of the top ten coal producers shifting from traditional mining to coal chemical sectors.

Meijin Energy’s main business covers coal, coking, natural gas, and hydrogen fuel cell vehicles. As of mid-2025, the company has a coke production capacity of 10.95 million tons per year, with an operational capacity of 8.95 million tons.

While its coal business faces pressure, hydrogen energy is viewed as a key part of Meijin Energy’s transformation. In July 2024, the company stated on its website that since launching its hydrogen energy industry layout in 2017, it has actively played the role of leading enterprises in various regional chains, fulfilling its responsibility to promote industry development. Looking ahead, the company will continue to maintain strategic focus, solidify its hydrogen energy foundation; persist in investment and innovation to lead steady industry growth; and uphold its green mission to serve national transformation.

The company relies on its coal chemical by-products, particularly coke oven gas, to develop its hydrogen energy business. Meijin Energy mentioned that coke oven gas contains about 55% hydrogen, making it an important low-cost, large-scale hydrogen production pathway. Additionally, the company’s subsidiary, Feichi Technology, is developing hydrogen fuel cell vehicle projects.

However, in the short term, hydrogen energy is unlikely to significantly boost Meijin Energy’s performance. The 2024 financial report shows that coal accounted for 94.68% of total revenue, while hydrogen energy contributed only 5.32%.

Industry experts believe that the key breakthrough for hydrogen energy development lies in green hydrogen. Only by producing green hydrogen with renewable electricity at competitive prices can the industry truly expand.