Yankuang Energy Group Co., Ltd. reported a sharp rise in first-half profit, driven by higher coal and coal chemical industry prices and volumes alongside a strategic expansion into power generation assets.

The company posted revenue of 70.23 billion yuan ($10.35 billion)  in January-June 2026, up 15.4% year on year, with net profit attributable to shareholders reaching 8.21 billion yuan, a 54.23% increase from a year earlier. Earnings per share stood at 0.78 yuan.

Coal output totaled 88.02 million tonnes in the first half, down 2.0% year on year due to production adjustments at some mines to match sales, though output recovered quarter by quarter, with second-quarter production reaching 46.47 million tonnes, up 11.8% from the first quarter. Coal sales rose 3.2% year on year to 82.91 million tonnes, with Yancoal Australia contributing 19.84 million tonnes, up 19.6% and serving as the key growth driver.

Coal sales prices climbed across major products including washed coal and thermal coal, lifting coal segment revenue to 46.41 billion yuan in the first half, up 13.5% from a year earlier.

The Shaanxi-Inner Mongolia base contributed 83% of net profit, while the Australia base achieved its best first-half output in six years. The company also won a bid for Australia's Kestrel coal mine, adding 410 million tonnes of premium coking coal resources.

Approvals were secured for the Liusangedan coal mine project and the expansion of Huolinhe No.1 mine to 10 million tonnes per annum (Mtpa) capacity, the company said. Permits for the Wucaiwan No.4 open-pit mine in Xinjiang, with 23 Mtpa capacity, are advancing, with new high-quality commercial coal capacity exceeding 80 million tonnes expected during the 15th "Five-Year Plan" period, lifting raw coal output above 300 million tonnes.

Coal chemical output reached 5.03 million tonnes in the first half, up 2.14% year on year, with sales of 4.46 million tonnes, up 2.61%. Coal chemical segment revenue rose 9.5% to 13.75 billion yuan, with net profit of 1.14 billion yuan.

The company's diversified chemical portfolio spans methanol, coal-to-liquids, acetic acid and urea, with total capacity of 12 million tonnes. Methanol capacity of 4.3 million tonnes ranks first nationally in commercial volume, while coal-to-liquids capacity of 1 million tonnes and acetic acid capacity of 1 million tonnes rank among the industry's top players.

Power generation totaled 3.27 TWh in the first half with sales of 2.67 TWh, generating 951 million yuan in revenue. The company's strategic acquisition of power and new energy assets from its controlling shareholder, approved by independent shareholders with 99% support in July 2026, adds 12 GW of installed capacity, positioning Yankuang among the top-tier coal-fired power listed companies.

The acquired assets include ultra-high-voltage supporting power stations, offshore wind projects and large-scale solar and wind bases, with 8.81 GW already operational and 3.20 GW under construction slated for commissioning between the second half of 2026 and 2027. These assets generated 840 million yuan in net profit in the first half, up 89.5% year on year.

The company recorded a 2.84 billion yuan net gain from the transfer of Xintai Coal, while cash balances reached 54.90 billion yuan at period-end, up 46.67% from end-2025. The debt-to-asset ratio fell to 60.93%, the lowest in three years.

The board proposed an interim dividend of 0.20 yuan per share, totaling approximately 2.01 billion yuan. The company distributed 24.3 billion yuan in dividends over 2023-2025, representing 66% of distributable profit, and has issued a 2026-2028 dividend policy to maintain stable shareholder returns.