China Coal Energy Company (1898) investor relations material

Executive summary

• Q1 2026 saw stable operations despite geological challenges, with a focus on efficiency and incremental growth.

• Operating revenue for Q1 2026 was RMB 34.19 billion, down 10.9% year-over-year.

• Net profit attributable to shareholders was RMB 3.84 billion, a 3.2% decrease year-over-year.

• Commercial coal production was 30.17 million tons, down 3.18 million tons year-over-year; sales were 36.02 million tons.

• Coal chemical output was 1.554 million tons, with sales up 4.8% year-over-year.

Financial highlights

• Operating revenue: RMB 34,189 million; total profit: RMB 5,641 million (down 9.2% year-over-year).

• Net profit attributable to shareholders: RMB 3,844 million; basic EPS: 0.29, both down 3.3% 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.

• Commercial coal unit selling cost: RMB 278.76/ton, up 3.3% year-over-year.

• Polyolefin unit selling cost: RMB 5,545/ton (down 4%); urea: RMB 1,318/ton (down 1.8%); methanol: RMB 1,354/ton (down 4.2%).

Outlook and guidance

• Q2 will focus on strengthening production, cost control, advancing key projects, and improving governance.

• Coal chemical profitability is expected to remain elevated but not at extreme highs, with trends subject to market and international factors.

• Cost initiatives and efficiency improvements will continue, but further cost reductions are limited due to rigid cost structure.

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

• Gains on investment rose 36.1% year-over-year, indicating improved performance from investee companies.