Daqin Railway (601006) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 39.60 billion, up 6.2% year-over-year, with net profit attributable to shareholders at RMB 4.25 billion, a 3.4% increase year-over-year.

• Main business remains railway freight (71.11% of revenue) and passenger transport (13.69%), with coal as the dominant cargo.

• Cash flow from operating activities turned positive to RMB 7.19 billion from a negative RMB 578 million in H1 2025.

• Dividend payout ratio for H1 2026 is 37.35% of net profit, with RMB 1.59 billion to be distributed.

Financial highlights

• Operating income: RMB 39.60 billion (+6.2% YoY); net profit attributable to shareholders: RMB 4.25 billion (+3.4% YoY).

• Operating cost increased 7.5% YoY, mainly due to logistics and labor costs.

• Basic and diluted EPS remained at RMB 0.21.

• Cash flow from operations: RMB 7.19 billion (vs. -RMB 578 million YoY).

• Total assets: RMB 214.48 billion (+1.26% YoY); net assets: RMB 164.64 billion (+0.22% YoY).

Outlook and guidance

• H2 2026 expected to benefit from increased electricity demand and supportive government policies for rail freight.

• Risks include coal supply tightening, high inventories, and ongoing cost pressures.

• Focus remains on coal transport, expanding non-coal logistics, and improving passenger services.