Zhongman Petroleum and Natural Gas Group (603619) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 1.71 billion, down 13.89% year-over-year; net profit attributable to shareholders was RMB 98.99 million, down 67.03%.

• Cash flow from operating activities increased 19.01% year-over-year to RMB 510.76 million.

• Decline in profit mainly due to lower crude sales at Wensu Oilfield, increased transport costs, and project delays in Iraq.

• The company maintained a strong international presence, with 56.22% of assets overseas.

Financial highlights

• Operating income: RMB 1.71 billion (down 13.89% YoY).

• Net profit attributable to shareholders: RMB 98.99 million (down 67.03% YoY).

• Basic and diluted EPS: RMB 0.21 (down 72.37% YoY).

• Gross margin: 41.6% (calculated from disclosed cost and revenue).

• Cash flow from operations: RMB 510.76 million (up 19.01% YoY).

• Total assets: RMB 13.14 billion (up 5.12% from year-end 2025).

• Net assets: RMB 4.37 billion (up 1.12% from year-end 2025).

Outlook and guidance

• The company expects continued volatility in international oil prices and geopolitical risks.

• Domestic oil and gas production is expected to remain robust, with policy support for private and local enterprises.

• The company will continue to focus on integrated development, international expansion, and technological innovation.