China Coal Energy Company (1898) H2 2025 earnings summary

Executive summary

• 2025 revenue fell 21.8% to CNY 148.057bn amid lower coal and chemical prices and volumes; profit attributable to equity holders declined 20.0% to CNY 14.497bn.

• Cost control and CNY 29.792bn in operating cash flow supported resilience despite market pressure; operating performance remained above the industry average.

• 14th Five-Year Plan priorities included integrating coal, power, chemicals and renewables, improving efficiency, expanding capacity and strengthening shareholder returns.

Financial highlights

• 2025 revenue was CNY 148.057bn, down 21.8% YoY; total profit was CNY 26.6bn, down 15.7%.

• Profit attributable to equity holders was CNY 14.497bn, down 20.0%; EBITDA fell 18.2% to CNY 33.167bn, and basic EPS was CNY 1.09.

• Gross profit decreased 21.3% to CNY 29.832bn; gross margin was 20.1%, up 0.1 percentage point.

• Net cash from operating activities was CNY 29.792bn, down 12.7% YoY; 14th Five-Year Plan average annual operating cash flow was CNY 39.7bn.

• Lower self-produced coal unit costs contributed CNY 4.16bn to 2025 profit, with lower taxes and surcharges contributing CNY 0.8bn and power CNY 0.7bn; coal-price declines were the main headwind.

Outlook and guidance

• 2026 targets include commercial coal sales above 130mt, self-produced coal output above 131mt, polyolefin output of 1.45mt and urea output of 2.03mt; revenue and profit are targeted to remain broadly stable absent significant market changes.

• 2026 CapEx is budgeted at CNY 21.32bn, up 7.05% vs 2025; allocations include CNY 7.24bn for coal, CNY 8.48bn for chemicals, CNY 2.18bn for coal power and CNY 2.6bn for renewables.

• Plans emphasize lean cost control, project delivery, digitalization and R&D, reform, safety, green transformation, innovation, and stronger risk and market-value management.

• Management cited potential to exceed the polyolefin plan by ~60kt after equipment overhauls, with improved operations expected to lower costs.