China Qinfa Group (866) H2 2025 earnings summary

Executive summary

• Revenue from continuing operations rose to RMB1,839 million in 2025, up RMB709 million year-over-year, driven by increased coal production in Indonesia despite lower average selling prices.

• Net loss for 2025 was RMB95 million, compared to a net profit of RMB556 million in 2024, mainly due to a RMB220 million loss from discontinued operations after the disposal of Chinese coal mines.

• EBITDA from continuing operations increased to RMB398 million, up RMB159 million year-over-year.

• No final dividend was recommended for 2025.

Financial highlights

• Gross profit from continuing operations increased to RMB473 million (25.7% margin), while discontinued operations saw a sharp decline in gross profit and margin.

• Basic earnings per share from continuing operations was RMB2.84 cents, down from RMB3.36 cents in 2024.

• Net finance costs from continuing operations rose to RMB74 million, reflecting higher borrowings.

• Current ratio improved to 1.15 from 0.5, and gearing ratio remained stable at 59.5%.

Outlook and guidance

• SDE Mine 1 in Indonesia achieved a world record for underground coal mining and is expected to boost annual output by over 1 million tonnes.

• SDE Mine 2 commenced production in March 2026, with full coal washing capacity expected by April 2026, raising total washing capacity to 13 million tonnes per annum.

• Approved coal production and sales volume for SDE Coal Mine in 2026 is 12.5 million tonnes.

• The Group plans to accelerate development of other Indonesian mines and deepen strategic partnerships.