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Shenhua Group Corp, China's biggest coal company, said sales increased 20 percent last year as demand for the fuel increased in the world's fastest-growing major economy.

Shenhua Group had sales of more than 100 billion yuan ($14 billion) in 2007, compared with 83 billion yuan a year earlier, the Beijing-based company said in a statement on its Web site yesterday.

Chinese coal companies are increasing output to meet rising demand from domestic power producers, which burn the fuel to generate about 78 percent of the nation's total electricity. China became a net coal importer for the first time in January last year.

Shenhua Group increased production 16 percent to 235 million metric tons last year, the company said, compared with the 203 million tons it produced in 2006.

Shenhua Group is the parent of the Shanghai and Hong Kong-listed China Shenhua Energy Co.