China Coal Energy Company (1898) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw stable operations despite geological challenges, with a focus on efficiency and incremental growth.

• Operating revenue for Q1 2026 was RMB 34.19 billion, down 10.9% year-over-year.

• Net profit attributable to shareholders was RMB 3.84 billion, a 3.2% decrease year-over-year; basic EPS was 0.29.

• Commercial coal production was 30.17 million tons, down 3.18 million tons year-over-year; sales were 36.02 million tons.

• Coal chemical product output was 1.554 million tons, with sales up 4.8% year-over-year.

Financial highlights

• Total profit for Q1 was RMB 5.64 billion, down 9.2% year-over-year.

• Net cash flows from operating activities surged 1,501.2% to RMB 5.75 billion, mainly due to a significant decrease in working capital.

• Unit selling cost of self-operated commercial coal rose 3.3% to RMB 278.76/ton due to higher labor and material costs.

• Comprehensive selling price of self-produced commercial coal was RMB 496/ton, up RMB 4/ton year-over-year.

• Polyolefin unit selling cost fell 4% to RMB 5,545/ton; urea and methanol unit costs also declined.

Outlook and guidance

• Q2 will focus on strengthening production, lean management, cost control, and advancing key projects.

• Cost initiatives and efficiency improvements will continue, with cost expected to remain at a low level but not decrease further due to rigid components.

• Coal chemical profitability is expected to remain elevated but not at extreme highs, with trends subject to market and international factors.

• Increased R&D expenses reflect a focus on technological innovation.

• Gains on investment rose 36.1% year-over-year, indicating improved performance from investee companies.