Guanghui Energy (600256) investor relations material

Executive summary

• Q3 earnings rose sharply as higher prices for coal, coal chemicals and natural gas, alongside cost controls and improved operations, widened profitability.

• 9M revenue increased 2.45% YoY to RMB 23.08bn; attributable net profit grew 174.04% to RMB 2.77bn, and operating cash flow rose 15.39% to RMB 4.98bn.

Financial highlights

• Q3 revenue was RMB 8.84bn, up 30.37% YoY; total profit reached RMB 1.89bn, up 350.65%.

• Q3 attributable net profit was RMB 1.495bn, up 842.20%; adjusted for non-recurring items, net profit was RMB 1.494bn, up 1,328.25%.

• 9M total profit was RMB 3.43bn, up 138.47%; attributable net profit was RMB 2.77bn, up 174.04%.

• 9M operating revenue was RMB 23.08bn; operating profit was RMB 3.50bn and consolidated net profit was RMB 2.69bn.

• 9M basic and diluted EPS were RMB 0.4338, up 179.15% YoY; operating cash flow was RMB 4.98bn, up 15.39%.

Outlook and guidance

• Management prioritized profit-led gas procurement, flexible response to market conditions, product pricing, cost reduction and efficiency gains; no numerical earnings guidance was stated.

• Four new exploration wells at Kazakhstan’s Zaysan project completed drilling and data collection; geological analysis will support development planning and well placement.

• Phase 1 of the high-value oil-rich coal upgrade project is progressing, with equipment installation and mechanical completion targeted by year-end.

• The 1,500ktpa coal classification and grading utilization project had completed 95% of basic design; environmental and energy approvals remained in process.