Yankuang Energy said China's coal consumption has entered a long-term plateau rather than a sharp decline after peaking, with the company expecting stable supply-demand balance and high-mid price ranges for coal in the second half.

The comments came at the company's recent results briefing, where it noted that coal consumption nationwide has generally trended upward over the past decade. The declining share of thermal power generation reflects structural changes from new energy substitution, not shrinking coal demand, the company said.

According to the coal industry development plan under China's 15th "Five-Year Plan" period, coal consumption will peak by 2030, leaving considerable room for industry growth during that period. Rising electricity demand from the tertiary sector and residential users will underpin thermal coal demand, while coal-to-chemical and metallurgical uses will support rigid demand, with coal-based new materials generating additional consumption growth.

For the remainder of the year, Yankuang Energy expects domestic coal supply and demand to remain broadly stable with periodic tightness, prices to fluctuate narrowly at mid-to-high levels, and the annual average price to be higher than last year.

On the supply side, intensified safety supervision across the industry is constraining capacity releases, leading to periodic supply contraction. On the demand side, macroeconomic policy support is taking effect, with the China Electricity Council forecasting full-year electricity consumption to rise 5%-6% year on year. Multiple new coal chemical projects are slated to start operations in the second half, boosting chemical coal use. Internationally, limited incremental global coal export supply — due to uncertain Indonesian export availability and higher shipping costs — is expected to keep international prices at mid-to-high levels with fluctuations.

Yankuang Energy said its capacity strategy aligns closely with the 15th "Five-Year Plan" coal industry blueprint. The company's 2021 development strategy targets coal output of 300 million tonnes per annum (Mtpa) within five to ten years, pursued through asset injections and new mine construction. All its mines under construction or planning are classified as safe, green, intelligent and efficient operations, located within or near China's five major coal supply guarantee bases. Over the next five years, the company will roll out high-quality incremental projects in phases to raise its share of advanced capacity.

Li Wei, Party secretary and chairman of Shandong Energy Group and chairman of Yankuang Energy, said at the briefing that the company improved profitability significantly in the first half through optimized production organization, accelerated project construction, asset revitalization and capital operations despite a challenging external environment. Under International Financial Reporting Standards, revenue reached 70.23 billion yuan ($10.36 billion) , up 15.4% year on year, while net profit attributable to shareholders rose 57.2% to 7.87 billion yuan. The company proposed an interim cash dividend of 0.2 yuan per share.

Li highlighted progress across the company's five business segments. Coal output recovered quarter by quarter, with first-half commercial coal production reaching 88.02 million tonnes and second-quarter output of 46.47 million tonnes, up 11.8% from the previous quarter. The integrated coal-chemical chain delivered 1.14 billion yuan in net profit from the chemical segment amid market volatility. Following the acquisition of high-quality assets from its controlling shareholder, the power and new energy segment added 12 GW of installed capacity, placing Yankuang among the top tier of listed coal-power companies. Emerging businesses including equipment manufacturing and smart logistics also made progress.

Li said that during the 14th "Five-Year Plan" period, Yankuang Energy proactively adapted to energy transition trends, optimized its industrial structure and exited outdated capacity. Its development strategy aligns with the 15th "Five-Year Plan" requirements to expand large-scale modern capacity while phasing out small and outdated operations. As high-quality capacity gradually comes online, cost controls take effect and acquired assets contribute profits, the company's earnings potential will continue to unfold.

During the Q&A session, Yankuang Energy said it spent 16.42 billion yuan in the first half to acquire two subsidiaries from its controlling shareholder Shandong Energy Group — Shandong Energy Group New Energy Group Co., Ltd. and Shandong Energy Power Sales Co., Ltd. — adding 12 GW of power capacity, including 8.81 GW in operation and 3.20 GW under construction, with commissioning expected through 2026-2027. The acquired assets generated 840 million yuan in net profit attributable to parent in the first half, up 89.5% year on year.

Separately, Yankuang Energy's Australian unit Yancoal Australia has received approvals including from Australia's Foreign Investment Review Board for its acquisition of Kestrel Coal Group, with completion expected by the end of the third quarter of 2026. The transaction cap is $2.4 billion. Kestrel produces premium hard coking coal, with recent raw coal output of 6-8.1 million tonnes per year and JORC-compliant saleable reserves of 164 million tonnes.

In mining diversification, Xinghe Molybdenum (Caosiyao molybdenum mine) obtained its mining license in May 2026, with construction expected to start by end-2026. The project has a designed capacity of 16.5 million tonnes per year of raw ore, producing 30,800 tonnes per year of molybdenum concentrate at full capacity.