Yankuang Energy Group Company (1171) investor relations material

Executive summary

• Revenue for H1 2025 was RMB53.97 billion, down 13.2% year-over-year, with net income attributable to shareholders at RMB4.73 billion, a 38.7% decrease year-over-year.

• Gross profit fell 28.1% year-over-year to RMB14.23 billion, and EPS dropped to RMB0.47 from RMB0.79.

• The Board declared an interim cash dividend of RMB1.80 per 10 shares and continued its share repurchase program.

• The company completed the acquisition of Xibei Mining, adding significant coal resources.

• Major subsidiaries Luxi Mining and Yancoal Australia saw net profit declines of 47.2% and 62.7% year-over-year, respectively.

Financial highlights

• Operating cash flow increased 28.7% year-over-year to RMB12.41 billion.

• Net cash from investing activities was negative RMB7.22 billion, mainly due to increased capital expenditures.

• Total assets reached RMB373.39 billion, with equity attributable to shareholders at RMB58.93 billion.

• Debt-to-equity ratio stood at 198.2% as of June 30, 2025.

• Gross margin declined to 26.4% from 31.9% year-over-year due to lower coal prices and sales volumes.

Outlook and guidance

• The company targets annual saleable coal production exceeding 180 million tons and chemical product output above 9 million tons.

• Focus areas for H2 2025 include production expansion, cost control, and high-end chemical product growth.

• Plans to reduce coal sales cost per ton by 3–5% and cut comprehensive financing costs by 10% for the year.

• Ongoing strategic investments in mining, chemicals, equipment manufacturing, logistics, and new energy.

• Plans to deepen lean management, optimize capital allocation, and enhance shareholder returns.