(File Photo)

The world's largest coal supplier Shenhua Group is facing unprecedented challenges on cutting production capacity in coal and steel.

The latest data released by the China National Coal Association shows that the profits of 90 large coal enterprises in China stood at only 5.13 billion yuan in the first 11 months of 2015. Total coal storage exceeded 300 million tons for 48 consecutive months, and more than 90 percent of firms suffered losses. 

Shenhua Group saw a 31.5 billion yuan profit in 2015, which represented a 50 percent year-on-year decline, the company's financial report shows. 

Restructuring is an urgent priority, and Shenhua is already closing a number of its mines. Between 2014 and 2015, the company cut 95 million tons in production and more than 170 million tons in sales. 

At the same time, Shenhua Group has been eying the new energy industry. It has signed a deal with U.S. company SolarReserve to build a 1,000-megawatt solar tower and other storage projects in China. The company is also preparing to build solar thermal projects in northewestern Ningxia Autonomous Region, which will be put into operation in 2017,and northewestern China's Gansu province. The 100-megawatt project in Gansu has a total investment of 3.3 billion yuan. 

In the company's 2016 social responsibility report, it notes goals to actively explore the development of wind and solar-based renewable energy, nuclear energy, and shale gas and hydrogen-based energy in the future. 

Zhang Yuzhuo, the president of Shenhua Group, has said that the company will implement three five-year plans between 2015 and 2030, and aims to become a world-class clean energy supplier in the next 15 years.