Jiangsu Xukuang Energy Co., Ltd. reported a year-on-year decline in first-half profit, weighed down by a mining royalty payment at its subsidiary, even as revenue rose on higher coal prices and new power capacity.

Net profit attributable to shareholders fell 42.89% to 53.22 million yuan ($7.88 million) in H1 2026, the company said at a half-year earnings briefing. Revenue rose 29.81% year on year to 7.24 billion yuan.

The profit decline was mainly due to a mining right transfer royalty paid by subsidiary Tianshan Mining, the company said. Revenue growth was driven by the commissioning of subsidiary Suneng Xidian and higher coal prices.

Operating cash flow rose 78.68% year on year to 1.48 billion yuan, attributed to recovering coal prices and incremental contributions from the Suneng Xidian project.

In the first half, China's coal industry saw its supply-demand balance shift from loose to tight, with coal prices trending upward overall.

Commercial coal output rose 7.17% year on year to 9.07 million tonnes, while sales rose 10.14% to 9.01 million tonnes. Commercial coal sales revenue rose 18.92% to 3.26 billion yuan, with gross profit up 9.51% to 1.04 billion yuan.

The average selling price of coking coal blend was 893.98 yuan/t, up from 866.53 yuan/t a year earlier. Thermal coal averaged 328.02 yuan/t, compared with 306.97 yuan/t in the same period last year.

As of end-June 2026, the company operated six producing mines with approved capacity of 17.8 million tonnes per annum (Mtpa) and coal resources exceeding 2 billion tonnes. In June 2024, it won exploration rights for the Baiguangou West coal resource in Chongxin county, Gansu province, with follow-up work proceeding.

On the power side, generation rose 75.87% year on year to 9.43 TWh in the first half, while electricity sales rose 75.20% to 8.96 TWh. Power segment revenue rose 59.68% to 3.24 billion yuan, with gross profit up 163.45% to 303 million yuan.

As of end-June 2026, the company had 5,347.84 MW of operational power capacity and 1,797.5 MW under construction. Renewable energy capacity stood at 647.84 MW in operation and 477.5 MW under construction. The Suneng Zhengxiang wind-solar-storage project is expected to be commissioned by end-2026.

The Suneng Xidian Ulagai 2×1,000 MW units have operated stably since commissioning, generating 1.06 billion yuan in revenue and 149 million yuan in net profit in H1 2026. The Baiyinhua 2×660 MW ultra-supercritical project, also a supporting power source for the "Mengdian Songsu" power transmission program, is over 74% complete as of end-July 2026 and is expected to be commissioned by end-2026.

The company said it will optimize its industrial structure, deepen coal-power integration and strengthen cost control to improve risk resilience. It also said it will maintain a reasonable and stable shareholder return policy while ensuring sustainable development.