China Coal Energy Company (1898) H1 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 was RMB 74.44 billion, down 19.9% year-over-year, with net profit attributable to shareholders at RMB 7.325 billion, both declining sharply due to lower coal and chemical prices and volumes.

• EBITDA fell 27.0% to RMB 16.857 billion, and basic EPS was RMB 0.55, down from RMB 0.81.

• Despite price pressures, production of commercial coal and key coal chemicals increased slightly, and cost management initiatives led to a 10% reduction in unit sales cost for self-produced coal.

• The company maintained stable operations, advanced key projects, and declared an interim dividend of RMB 2.198 billion (RMB 0.166/share), representing a 30% payout ratio.

• Net cash inflow from operating activities was RMB 7.7 billion, down 48.5% year-over-year, but liquidity remained strong.

Financial highlights

• Operating revenue: RMB 74.44 billion (down 19.9% year-over-year); net profit: RMB 7.325 billion, down 31.5% year-over-year.

• Gross profit dropped 31.8% to RMB 14.561 billion; gross margin declined to 19.6% from 23.0%.

• EBITDA was RMB 16.857 billion, down 27% year-over-year.

• Basic EPS: RMB 0.55, down from RMB 0.81 in H1 2024.

• Net cash generated from operating activities was RMB 7.7 billion, down 48.5% year-over-year.

Outlook and guidance

• Annual production and sales targets remain unchanged despite temporary production slippage due to accidents and weather.

• Management expects coal market to gradually recover in H2 2025, focusing on production-sales coordination, cost control, and high-quality development.

• Key priorities include enhancing lean management, accelerating key project construction, and driving innovation.

• CapEx for 2025 is expected to be around RMB 20 billion annually for the next three years.

• Coal prices are expected to stabilize, with long-term contract prices around RMB 690 and spot prices slightly above RMB 700 per ton.