China Shenhua Energy Company (1088) investor relations material

Executive summary

• Revenue for Q1 2026 rose 1.2% year-over-year to RMB 70,397 million, while net profit attributable to equity holders declined 11.1% to RMB 11,885 million.

• Basic EPS decreased 12.2% year-over-year to RMB 0.591.

• Major asset acquisitions from the controlling shareholder were completed, significantly increasing total assets and equity.

Financial highlights

• Gross profit for Q1 2026 was RMB 20,656 million, down from RMB 21,331 million year-over-year.

• Net cash generated from operating activities was RMB 17,363 million, a 15.5% decrease year-over-year.

• Total assets increased 24.6% to RMB 787,191 million, and equity attributable to equity holders rose 17.4% to RMB 484,286 million compared to year-end 2025.

• Short-term borrowings surged to RMB 92,490 million due to M&A loans.

• Net cash used in investing activities reached RMB 102,346 million, mainly due to asset acquisitions.

Outlook and guidance

• 2026 business targets were adjusted upward post-acquisition: commercial coal production target increased 55.5%, coal sales up 42.1%, and power generation up 28.8%.

• Revenue target for 2026 raised by 28.6% to RMB 360 billion.

• Capital expenditure plan for 2026 increased by 47.2% to RMB 55.99 billion, focusing on coal, power, transportation, and coal chemical projects.