China Coal Energy Company (1898) investor relations material

Executive summary

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

• Faced production challenges due to changing geological conditions and transition from outsourced to in-house labor, resulting in lower coal output and sales year-over-year.

• Maintained stable coal chemical output and improved sales volume, with cost initiatives and quality upgrades supporting margins.

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.

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

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

• Unit selling cost of self-operated commercial coal rose 3.3% to RMB 278.76/ton; polyolefins, urea, and methanol unit costs declined 1.8%-4.2%.

Outlook and guidance

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

• Coal chemical profitability expected to remain volatile, highly dependent on market and international factors.

• Cost initiatives and quality improvements to continue, but marginal gains may moderate as measures mature.

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