Shanxi Lu'an Environmental Energy Development Co.,Ltd. reported a 31.85% year-on-year increase in net profit attributable to shareholders for the first half of 2026, driven by higher coal prices.

The Shanxi-based coal producer posted operating revenue of 15.01 billion yuan ($2.23 billion)  in January-June, up 6.68% from a year earlier, with net profit reaching 1.78 billion yuan. Excluding non-recurring items, profit rose 49.66% to 1.72 billion yuan, with basic earnings per share of 0.59 yuan.

The company attributed revenue growth to higher average commercial coal prices during the period. Raw coal output totaled 27.06 million tonnes in H1, with commercial coal sales of 24.04 million tonnes at an average price of 596.19 yuan/t. Blended coal output and sales stood at 10.85 million tonnes and 10.86 million tonnes respectively, while PCI coal output and sales reached 11.57 million tonnes and 11.53 million tonnes.

Commercial coal sales revenue amounted to 14.33 billion yuan, generating gross profit of 5.89 billion yuan.

Compared with the year-earlier period, the average commercial coal price rose approximately 15.5% in H1 2026, outpacing a 10.5% increase in costs, boosting profitability through both higher volumes and prices.

Gross margin improved to 40.09%, up 11.3% year on year, while net margin rose 55.92% to 11.69%. Weighted return on equity increased 33.68% to 3.85%.

The company's debt-to-asset ratio stood at 41.28%, up 4.79% year on year. Current and quick ratios were 0.78 and 0.76 respectively, with total debt of 6.67 billion yuan, of which short-term debt accounted for 44.84% at 2.99 billion yuan.