Shan Xi Hua Yang Group New Energy (600348) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 21.44 billion, down 14.43% year-over-year due to a significant decline in coal prices despite higher sales volumes.

• Net profit attributable to shareholders was RMB 1.70 billion, down 23.45% year-over-year.

• Coal production reached 41.61 million tons, up 8.43% year-over-year; sales volume was 39.60 million tons, up 11.42%.

• Major transformation progress in sodium-ion battery and high-performance carbon fiber businesses, with new production lines and commercial orders.

• Dividend payout ratio maintained at over 50%, with a proposed cash dividend of RMB 2.37 per 10 shares.

Financial highlights

• Operating income: RMB 21.44 billion, down 14.43% year-over-year.

• Net profit attributable to shareholders: RMB 1.70 billion, down 23.45% year-over-year.

• Gross margin for coal business: 42.60%, up 2.38 percentage points year-over-year.

• Operating cash flow: RMB 3.18 billion, down 8.84% year-over-year.

• Total assets: RMB 87.40 billion, up 7.95% from previous year-end.

Outlook and guidance

• 2026 coal production target set at 38 million tons, with revenue target of RMB 21 billion.

• Focus on cost control, technological innovation, and market expansion in both coal and new energy materials.

• Continued investment in sodium-ion battery and carbon fiber capacity and technology.