China Qinfa Group (866) H1 2025 earnings summary

Executive summary

• Disposed of all China coal mining assets, focusing on Indonesian operations after July 2025.

• Completed strategic acquisitions in Indonesia, including 70% of TSE and 100% of WM, strengthening coal reserves and production rights.

• Shifted business model toward resource value management and asset-light development.

• Revenue from continuing operations rose to RMB1,089.4 million, up from RMB493.4 million year-over-year, driven by higher Indonesian coal production despite lower average selling prices.

• Net loss for the period was RMB162.7 million, with RMB31.0 million profit from continuing operations and RMB193.7 million loss from discontinued operations.

Financial highlights

• Revenue from continuing operations rose to RMB1,089.4 million, up from RMB493.4 million year-over-year, driven by higher trading volume despite lower average selling prices.

• Gross profit from continuing operations was RMB237.2 million, with gross margin at 21.8%.

• Net loss attributable to equity shareholders was RMB126.1 million, compared to a profit of RMB43.0 million in the prior year.

• EBITDA from continuing operations was RMB165 million, up RMB136 million year-over-year.

• Basic earnings per share from continuing operations improved to RMB0.85 cents, compared to a loss of RMB1.83 cents last year.

Outlook and guidance

• Focus on expanding Indonesian production capacity, with SDE Mine II expected to commence production in 1H 2026.

• Ongoing infrastructure upgrades at SDE port and construction of a biomass power plant to reduce costs and improve efficiency.

• Strategic shift to full-lifecycle value management of mining rights and premium exits via strategic investors.