Shan Xi Hua Yang Group New Energy (600348) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 9.92 billion, down 11.73% year-over-year due to lower coal sales volume, but net profit attributable to shareholders rose 35.63% to RMB 1.06 billion, driven by higher coal prices and effective cost control.

• Gross margin and profitability improved as coal product prices increased 6.81% year-over-year, while operating costs fell 24.86%.

• The company advanced its dual-engine strategy, maintaining a strong coal business and accelerating new energy and materials projects, including sodium-ion batteries and high-performance carbon fiber.

Financial highlights

• Operating income: RMB 9.92 billion, down 11.73% year-over-year.

• Net profit attributable to shareholders: RMB 1.06 billion, up 35.63% year-over-year.

• Basic and diluted EPS: RMB 0.29, up 31.82% year-over-year.

• Operating cash flow: RMB 699 million, up significantly from RMB 52 million in H1 2025.

• Gross margin improved due to higher coal prices and lower costs.

Outlook and guidance

• The company expects continued resilience in coal demand, with ongoing cost control and efficiency measures.

• New energy and materials businesses are positioned for growth, with sodium-ion battery and carbon fiber projects entering commercialization and scale-up phases.