China Coal Energy Company Limited

China Coal Energy reported first-half operating revenue of CNY 73.13 billion. Under CAS, profit was CNY 12.46 billion, up 4.4% year over year; net profit attributable to shareholders was CNY 8.14 billion, up 5.8%; and basic EPS was CNY 0.61, up 0.2%. Net cash from operating activities was CNY 9.86 billion, up CNY 2.19 billion or 28.6% year over year. Under IFRS, revenue was CNY 73.13 billion, profit before tax was CNY 12.42 billion, up 7.1%, attributable profit was CNY 8.19 billion, up 11.8%, and basic EPS was CNY 0.62, up 12.7%. Management said the average selling price of self-produced commercial coal rose to CNY 524 per tonne, up CNY 54 or 11.5%, while thermal coal was CNY 494 per tonne, up 13.3%, coking coal was CNY 1,017 per tonne, up 14.9%, and bulk trading coal was CNY 549 per tonne, up 16.3%. Polyolefins sold for CNY 7,017 per tonne, urea for CNY 1,828 per tonne, methanol for CNY 1,868 per tonne, and ammonium nitrate for CNY 1,902 per tonne. Unit sales cost of self-produced commercial coal was CNY 285.69 per tonne, up 8.6%, and operating cash flow rose to CNY 9.86 billion. For the full year/second half, management said it would stick to the annual production plan, expected the Yulin Phase 2 coal chemical project to begin startup in November and contribute output from December, and guided that H2 chemicals margins would be roughly on par with H1; next year, incremental polyolefin capacity from Yulin Phase 2 should lift margins. The company also planned a CNY 2.44 billion interim dividend, or CNY 0.184 per share, payable before end-October 2026.

Management emphasized stable operations despite “multiple operating pressures,” tighter safety inspections, and more difficult mining conditions. The strategic message was to keep pushing a coal-power-chemicals-new energy integrated model, deepen reform and innovation, and improve quality and efficiency through better production-sales coordination. On the call, leadership sounded cautious but confident, repeatedly saying they would stay focused, compliant, and determined to meet the annual production target.

The financial commentary centered on stronger pricing, controlled costs, and cash generation. Management quantified the main cost pressure: unit sales cost of self-produced commercial coal rose to CNY 285.69 per tonne, up CNY 22.72 or 8.6%, mainly from lower output and higher labor costs after shifting some outsourced teams in-house. They also said H1 tax-related nonoperating expenses and taxes and surcharges rose because of a special tax review and differences in historical tax treatment, and that the first-half tax work was basically completed, though some additional tax risk could remain depending on regulator requirements. Capital allocation stayed shareholder-friendly, with 3 straight years of interim dividends and a planned CNY 2.44 billion payout.

Analysts focused on three issues: Gansu expansion plans, tax-related nonoperating expenses, and whether production can recover after tighter safety inspections. Management said the Gansu cooperation is still in the preliminary stage, with a wholly owned subsidiary already established, but no actual investment has started yet. On taxes, management said the H1 tax payment reflected a special review and differences in how certain items such as raw coal vs. washed coal and land-use classifications were interpreted, and that the payments had been disclosed in the interim report. On production, they said H1 output fell 3.39 million tonnes, or 8%, because of stricter safety checks and geology, but they will try to catch up in H2 while staying compliant. They also said the Yulin Phase 2 polyolefin project should begin startup in November and produce from December, with EVA delayed until next year.