Huaibei Mining Holdings Co., Ltd. reported a 20.1% year-on-year increase in net profit attributable to shareholders for the first half of 2026, driven by higher sales volumes and prices of its main products.

The company's operating revenue reached 21.39 billion yuan($3.15 billion) in January-June 2026, up 3.8% from a year earlier, while net profit attributable to shareholders stood at 1.24 billion yuan, according to its interim report.

In the second quarter alone, revenue rose 11.6% year on year to 11.21 billion yuan, with attributable net profit surging 120.0% to 748 million yuan.

Huaibei Mining attributed the steady growth to its integrated coal mining and coal chemical chain, benefiting from higher volumes and prices of core products, as well as the commissioning of new power generation projects. The company's two 660 MW ultra-supercritical coal-fired units have entered commercial operation, expanding its coal-power integration capacity.

Net cash flow from operating activities totaled 2.39 billion yuan in the first half, up 12.19% year on year.

Coal remained the core revenue source, generating about 6.04 billion yuan, while coal chemical products contributed approximately 5.43 billion yuan. Commercial trading and other businesses accounted for a large share of revenue but with limited gross profit contribution.

Commercial coal output reached 9.19 million tonnes in the first half, up 3.11% year on year, with sales of 6.90 million tonnes, up 6.51%. Sales revenue from coal rose 11.77%, with gross profit up 12.43%.

Coke output increased 7.33% to 1.83 million tonnes, with sales up 8.32% to 1.82 million tonnes. Average selling prices rose 9.46%, lifting sales revenue by 18.58%.

Methanol output surged 29.95% to 397,400 tonnes, with sales up 20.85% to 139,100 tonnes. Average prices gained 12.87%, driving sales revenue up 36.39%.

Ethanol output climbed 34.74% to 308,700 tonnes, with sales up 37.86% to 303,300 tonnes. Average prices rose 2.08%, boosting sales revenue by 40.70%.

The company said stricter coal quality control at the source reduced ash content in washed coking coal and improved washed coal yield, while a tight supply-demand balance in the coal market supported prices, lifting gross profit from its main business.

Purchases of washed coal for coal chemical production totaled 2.68 million tonnes in the first half, up 9.58%, with purchase prices rising 8.67%.

Management expenses increased 12.16% year on year due to higher staff compensation and maintenance costs, while finance costs rose 16.24% on higher interest-bearing debt. However, strict cost controls on materials and outsourcing fees partially offset the pressure.

Looking ahead to the second half, Huaibei Mining expects domestic coal output to remain constrained as safety inspections and capacity compliance checks stay stringent following the implementation of new coal mine major hazard identification standards from July 1. Indonesia's tightening coal export policies have narrowed the price advantage of imported coal, while limited incremental supply from Mongolia and Russia points to a continued tight supply picture.

On the demand side, the traditional peak consumption season from September to October is expected to underpin overall coal demand, though structural imbalances persist. Thermal coal will find support from power and chemical sectors, while coking coal faces weakness due to steel end-user constraints, despite low social inventories providing some price support.

The company forecasts the coal market will maintain a tight supply-demand balance in the second half of 2026, with prices trending firm within a range-bound pattern.