China Shenhua Energy Company (1088) investor relations material

Executive summary

• Achieved revenue of RMB189,338 million, up 7.9% year-over-year; net profit attributable to equity holders reached RMB31,054 million, up 1.9% year-over-year.

• Completed the acquisition of equity interests in 12 target companies, significantly expanding coal, power, and coal chemical segments.

• Interim dividend of RMB0.98 per share proposed, totaling RMB21,256 million, representing 68.4% payout ratio for the first half.

• Maintained strong market position, with market capitalization reaching RMB832.6 billion at period end.

• Maintained stable production and high output in coal, increased sales of purchased coal by 32.5%, and enhanced integrated operations across coal, power, railway, port, shipping, and chemicals.

Financial highlights

• Revenue: RMB189,338 million (+7.9% YoY); EBITDA: RMB65,177 million (+5.2% YoY); net cash inflow from operating activities: RMB54,664 million (+6.1% YoY).

• Basic EPS: RMB1.448 (+0.7% YoY); return on net assets: 6.8% (+0.9 percentage points YoY).

• Total assets: RMB929,709 million (+1.9% from year-end 2025); total equity: RMB558,835 million (-8.7% from year-end 2025, due to share issuance and acquisition effects).

• Gearing ratio increased to 39.9% (+7.0 percentage points YoY); total debt to equity ratio at 22.1%.

• Gross margin: 30.0% (down from 30.7% YoY); EBITDA margin: 34.4%.

Outlook and guidance

• Coal market expected to remain tight in H2 2026, with prices fluctuating within a reasonable range.

• National power consumption projected to grow 5–6% YoY in H2; power supply and demand to remain balanced, with potential for regional shortages during extreme weather.

• Company targets full-year commercial coal production of 513.4 million tonnes and coal sales of 618.1 million tonnes.

• Focus areas: safety, steady growth, innovation, transformation, reform, and risk prevention.

• New power generation capacity in China to reach 400 GW for the year.