Shanxi Coking Co., Ltd., China's leading coke producer, reported lower revenue and a narrowed net loss for the first half of 2026, as weak market fundamentals persisted amid volatile upstream coal supply and downstream steel demand.

The company's main business covers the production and sale of coke and related chemical products, with metallurgical coke as its flagship product and methanol, carbon black, ammonium sulfate, industrial naphthalene, modified pitch and pure benzene as by-products. Its core operations remained unchanged during the reporting period.

Revenue for January-June stood at 3.10 billion yuan ($460 million), down 3.76% year on year, according to the interim report. The decline was mainly attributed to lower sales volumes of coke and chemical products.

Operating costs fell 8.44% year on year to 3.26 billion yuan, reflecting lower raw coal procurement volumes, which reduced coke production costs.

The company still posted negative profit but narrowed its losses. Total profit came in at -14.25 million yuan, with net profit attributable to shareholders at -14.60 million yuan and net profit excluding non-recurring items reached -19.46 million yuan, all showing significant improvement from a year earlier.

Shanxi Coking noted that coke and derivative chemical product prices strengthened during the period, driven by volatile upward movements in coking coal prices, periodic supply tightness and global geopolitical tensions.

However, coke price gains lagged behind upstream coking coal increases, while downstream steel demand remained weak. Although coking plants saw some margin expansion and industry profits partially recovered, the dual pressure from both ends persisted.

Outside its core business, the company recognized investment income of 472.81 million yuan from China Coal Huajin, in which it acquired a 49% stake through a major asset restructuring in 2018, boosting operating profit by the same amount.

China Coal Huajin, operating four mines with a combined annual production capacity of 15.7 million tonnes, possesses stable and robust sustained profitability.

The company's coal resources consist mainly of high-quality lean coal with medium ash, low sulfur and ultra-low phosphorus content, as well as anthracite with low ash, ultra-low sulfur, ultra-low volatile matter and ultra-high calorific value, both classified as nationally scarce protected mining coal types.

And its "Wangjialing I washed coal" has been awarded the "Coal Quality Trustworthy Product" designation by the China Coal Processing and Utilization Association.