China Coal Energy Company (1898) H1 2026 earnings summary

Executive summary

• Profit attributable to shareholders rose 11.8% year-over-year to RMB 8.192 billion, with profit before tax at RMB 12.427 billion and EBITDA at RMB 17.564 billion.

• Operating revenue for H1 2026 was RMB 73.136 billion, with a 1.8% year-over-year decline mainly due to lower coal trading and equipment sales, partially offset by higher chemical segment revenue.

• Net cash inflow from operating activities increased 28.6% to RMB 9.864 billion.

• Interim dividend of RMB 2.445 billion (RMB 0.184 per share) declared, representing 30% of net profit and continuing a three-year streak of interim payouts.

• Production and sales of commercial coal were 61.95 million tons and 119.7 million tons, respectively, despite operational challenges and stricter safety inspections.

Financial highlights

• Gross profit increased 10.1% year-over-year to RMB 16.027 billion, with gross margin up 2.3 points to 21.9%.

• Net profit attributable to shareholders: RMB 8.192 billion (up 11.8% year-over-year under IFRS).

• Basic EPS: RMB 0.62 (up from RMB 0.55 year-over-year).

• Total assets grew 4.3% to RMB 386.465 billion; equity attributable to holders increased 3.8% to RMB 166.402 billion.

• Net cash flows from operating activities: RMB 9.864 billion, up 28.6% year-over-year.

Outlook and guidance

• Production volume in H2 expected to improve as the company aims to catch up with annual targets, though strict safety compliance may limit upside.

• Management targets high-quality growth, further integration of coal, power, chemical, and new energy, and continued cost control.

• Focus on intelligent, green, and integrated development, with accelerated construction of key projects and innovation in management and technology.

• Renewable energy installations targeted at 50 million kW long-term, with annual additions of 8 million kW.

• Costs are expected to remain controllable, with management prioritizing profitability over expense reduction.