Yankuang Energy Group Company (1171) investor relations material

Executive summary

• Sales income for H1 2026 reached RMB70.23 billion, up 15.4% year-over-year, with net income attributable to shareholders at RMB7.87 billion, a 57.2% increase year-over-year.

• Gross profit rose 16% to RMB18.74 billion, and EPS increased to RMB0.78 from RMB0.50 year-over-year.

• The company declared an interim cash dividend of RMB0.20 per share and maintained a dividend payout ratio above 60%.

• Major strategic moves included the acquisition of Kestrel Coal Mine, expansion in high-end chemicals, and the approval for the spin-off and listing of Wubo Technology.

Financial highlights

• Operating cash flow for H1 2026 was RMB12.12 billion, with net cash from operating activities down 4.1% year-over-year.

• Net assets per share rose to RMB7.58, and return on net assets improved to 10.35% from 8.21% at year-end 2025.

• Debt-to-asset ratio decreased to 60.9%, and the average financing rate dropped to 2.4%.

• Interest coverage ratio increased to 6.88, and EBITDA interest coverage ratio reached 11.28.

Outlook and guidance

• The company will focus on expanding coal and chemical production, accelerating project construction, and enhancing cost control in H2 2026.

• Strategic priorities include industrial upgrading, capacity expansion, and green transformation.

• The 2026-2028 shareholder return plan targets a cash dividend payout of about 50% of net profit.