China Qinfa Group (866) H1 2026 earnings summary

Executive summary

• Revenue from continuing operations rose year-over-year, driven by higher coal prices and expanded production capacity in Indonesia, particularly after SDE Mine 2 commenced operations, reaching RMB1,179 million for H1 2026.

• Net profit from continuing operations surged 819% year-over-year to RMB285 million, with profit attributable to equity holders up 837% to RMB227 million.

• EBITDA increased 218% year-over-year to RMB523 million, reflecting improved operational efficiency and market conditions.

• The Group completed a successful share placement, raising HK$309.6 million to support Indonesian mine development.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit rose to RMB428 million (up from RMB237.2 million), with gross margin improving to 36.3% from 21.8% year-over-year.

• Operating profit reached RMB383 million, up from RMB76.9 million in H1 2025.

• Basic earnings per share from continuing operations was RMB8.67 cents, up 920% year-over-year.

• Net finance costs increased to RMB64 million due to higher interest charges.

• Cash and cash equivalents stood at RMB314 million at period end.

Outlook and guidance

• Global coal market expected to remain tight in H2 2026, with continued upward pressure on prices due to supply constraints and strong Asian demand.

• The Group will focus on stabilizing and increasing production at SDE Coal Mine, leveraging new capacity and optimizing product mix.

• Management will closely monitor Indonesian export policy changes and expects an orderly transition and continued compliance.