Yankuang Energy Group Company (1171) investor relations material

Executive summary

• H1 revenue was RMB70.231bn, up 15.4% YoY; profit attributable to shareholders rose 57.2% to RMB7.875bn.

• Firmer coal prices and improved coal-chemical profitability supported growth, despite saleable coal output falling 2.05% YoY.

• The Xintai disposal added RMB2.843bn to attributable profit; tax-related charges and an Australian hedging loss partly offset the gain.

• An interim dividend of RMB0.20 per share was proposed; the 2026–2028 policy sets a ~50% cash-dividend reference based on the lower CASS or IFRS after-tax profit after statutory reserves.

Financial highlights

• Revenue was RMB70.231bn, up 15.4%; gross profit rose 15.98% to RMB18.743bn and profit before tax increased 35.55% to RMB13.525bn.

• Net profit attributable to shareholders was RMB7.875bn, up 57.2%; basic and diluted EPS were RMB0.78 versus RMB0.50 restated for H1 2025.

• Sales costs increased 15.42% to RMB48.875bn; selling, general and administrative expenses rose 9.68% to RMB8.158bn, while finance costs fell 6.6% to RMB2.040bn.

• Operating cash flow was RMB12.119bn, down 4.11% YoY; investing cash outflow was RMB9.123bn and financing cash inflow was RMB12.848bn.

• Net cash increased RMB15.845bn to RMB42.385bn, including RMB18.361bn of transaction-related refunds received.

Outlook and guidance

• H2 priorities include meeting annual coal and chemical output targets, expanding capacity, reducing costs, improving efficiency and advancing project construction; no quantified earnings forecast was stated.

• FY 2026 capital expenditure is budgeted at RMB19.831bn; H1 spending was RMB5.686bn, including RMB3.790bn for coal development and mining.

• Planned projects include Wucaiwan No. 4, Youfanghao and Yangjiaping mines, 800ktpa olefin projects, Lunan Chemicals’ 60ktpa polyformaldehyde project and Future Energy’s 500ktpa Fischer-Tropsch project.

• Annual cost-reduction and efficiency gains target exceeds CNY1.7bn; financing costs target a 10% full-year reduction and interest savings above CNY300m.

• Thermal projects totaling 2.52GW are targeted to enter operation by year-end; annual generation and electricity sales are projected at 45bn kWh and 42bn kWh.