China Coal Energy Company (1898) investor relations material

Executive summary

• Q1 2026 operating revenue was RMB 34.19 billion, down 10.9% year-over-year, with net profit attributable to shareholders at RMB 3.84 billion, a 3.2% decrease year-over-year, and basic EPS at 0.29.

• Commercial coal production reached 30.17 million tons, down 3.18 million tons year-over-year, and sales were 36.02 million tons, with self-produced sales at 29.7 million tons, down 2.98 million tons year-over-year.

• Coal chemical product output was 1.554 million tons, with polyolefin sales volume up 4.8% and urea sales volume up 17.3%; polyolefin prices fell 8.8% while urea prices rose 5.3%.

Financial highlights

• Total profit for Q1 was RMB 5.64 billion, down 9.2% year-over-year.

• Net cash flows from operating activities surged 1,501.2% to RMB 5.75 billion, mainly due to a significant decrease in working capital.

• Unit selling cost of self-operated commercial coal rose 3.3% year-over-year to RMB 278.76 per ton, mainly due to higher labor and material costs.

• Comprehensive selling price of self-produced commercial coal was RMB 496 per ton, up RMB 4 per ton year-over-year; thermal coal price rose by RMB 11 per ton, coking coal by RMB 69 per ton.

• Polyolefin unit cost decreased 4.0% year-over-year.

Outlook and guidance

• Q2 is seen as a critical transitional period, with focus on strengthening production, cost control, advancing key projects, and improving governance.

• Cost initiatives and efficiency improvements will continue, with cost expected to remain at a relatively low level but unlikely to decrease further due to rigid components.

• Coal chemical profitability is expected to remain elevated in the near term but not at extreme highs, with margins subject to market and international factors.

• Capacity addition plans target 130 million tons by 2027, 135 million by 2028, 140 million by 2029, and 150 million by 2030.

• Increased R&D expenses reflect a focus on technological innovation.