Yankuang Energy Group Company (1171) H2 2025 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of RMB8.52 billion under IFRS, with total revenue of RMB133.34 billion for 2025, and a return on net assets of 11.96%.

• Salable coal production reached a record 182 million tons, up 6.3% year-over-year, and chemical product output rose 8.5% to 9.77 million tons.

• Cost control initiatives led to a 7% year-over-year decrease in coal sales cost per ton, and the debt-to-asset ratio improved to 62.2%.

• The company declared total dividends of RMB0.50 per share, amounting to RMB5.02 billion, and maintained a high cash dividend policy.

• Major acquisitions and project completions, including Xibei Mining and new coal mine licenses, expanded production capacity and reserves.

Financial highlights

• Revenue for 2025 was RMB133.34 billion, down 5.5% year-over-year; net profit attributable to shareholders was RMB8.52 billion, down 41.6%.

• Gross profit margin for coal business was 35.5%, with a 7.1 percentage point decrease year-over-year.

• Net cash from operating activities was RMB16.64 billion, a 42.8% decrease year-over-year, mainly due to lower coal prices.

• Total assets reached RMB451.97 billion, with equity attributable to shareholders at RMB71.29 billion.

• Debt-to-equity ratio stood at 184.2%, and overseas assets accounted for 17.3% of total assets.

Outlook and guidance

• 2026 production targets: 186–190 million tons of salable coal and 9.5–11.0 million tons of chemical products.

• Aims for a further 3% reduction in coal sales cost per ton and lower methanol/acetic acid sales costs by RMB30 per ton.

• Capital expenditure budget for 2026 set at RMB19.8 billion, focusing on capacity expansion and new energy projects.

• Strategic focus on high-quality development, green transition, and multi-mineral diversification, with a goal to add 70 million tons of new coal capacity by 2031.