China Coal Energy reported a 5.8% increase in net profit attributable to shareholders under Chinese Accounting Standards to RMB 8.14 billion for the first half of 2026, despite missing adjusted earnings per share estimates. Under International Financial Reporting Standards, net profit rose 11.8% to RMB 8.19 billion.
Operating revenue reached RMB 73.13 billion, equivalent to $38.95 billion, while basic EPS under CAS stood at RMB 0.61, up 5.2% year-on-year. Adjusted EPS of $0.32 fell short of the $0.385 consensus forecast by 16.9%, according to management.
Production and sales metrics reflected operational challenges. Commercial coal output declined 8% year-on-year to 61.95 million tons due to stricter sector-wide safety checks following the May Xinji coal mine incident. Sales volume totaled 119.7 million tons, including 61.4 million tons of self-produced coal. Unit sales costs for self-produced coal rose 8.6% to RMB 285.69 per ton, driven by lower output and higher labor expenses after converting outsourced teams to self-operated operations.
Average selling prices for self-produced commercial coal increased 11.5% to RMB 524 per ton, with thermal coal at RMB 494 per ton and coking coal at RMB 1,017 per ton. Chemical product margins improved, with polyolefins selling at RMB 7,017 per ton and urea at RMB 1,828 per ton, though ammonium nitrate costs rose 36.8% due to planned maintenance.
Operational headwinds offset some gains. Higher coal prices contributed RMB 3.3 billion to profit, while lower sales volume reduced earnings by RMB 1.17 billion. Net cash from operating activities increased 28.6% to RMB 9.86 billion.
The board approved an interim cash dividend of RMB 0.184 per share, totaling RMB 2.44 billion, payable before October 2026. The stock last traded at $11.53, up 3.04% on the day, within a 52-week range of $9.14 to $15.24.
Management highlighted progress on several projects. The Yulin Phase 2 coal chemical project in Shaanxi reached mechanical completion, with startup expected in November and production in December 2026. The company also advanced renewable energy initiatives, including a 100-megawatt wind power project and a 400-megawatt solar project in Leizhou. A strategic agreement with Gansu Province targets a 1.75 billion-ton coal reserve base and 9 million-ton annual capacity, though investment has not yet commenced.
