Shanxi Lu'an Environmental Energy Development (601699) investor relations material

Executive summary

• Revenue for 2025 was RMB 27.82 billion, down 22.4% year-over-year; net profit attributable to shareholders was RMB 1.12 billion, down 54.47%.

• Coal market faced cyclical downturn and price declines, with company maintaining stable operations and fulfilling supply obligations.

• Major focus on cost control, technological upgrades, and green transformation, with significant progress in intelligent mining and environmental initiatives.

• Board proposes a cash dividend of RMB 0.187 per share, totaling RMB 559 million, representing 50.16% of net profit.

Financial highlights

• Operating income: RMB 27.82 billion, down 22.4% year-over-year.

• Net profit attributable to shareholders: RMB 1.12 billion, down 54.47% year-over-year.

• Basic and diluted EPS: RMB 0.37, down 54.88% year-over-year.

• Gross margin for coal: 34.38%, up 6.52 percentage points; coal sales cost per ton: RMB 347.26, down RMB 43.50 year-over-year.

• Operating cash flow: RMB 5.00 billion, up 0.75% year-over-year.

Outlook and guidance

• 2026 coal industry expected to shift to weak supply-demand balance with price center moving up and structural differentiation.

• Company to focus on capacity assurance, cost control, intelligent upgrades, green transformation, and market expansion.

• Risks include industry cyclicality, safety/environmental policy tightening, and investment recovery uncertainty.