Perennial Energy Holdings Limited (“PER ENERGY”, 02798) reported a net loss of RMB43.90 million for the six months ended 30 June 2026, reversing from a RMB3.00 million profit a year earlier.

Revenue fell 13.4% year on year to RMB512.0 million, driven by a 5.2% decline in coal product sales volume to 713,156 tonnes and a shift in product mix. Clean-coal revenue contracted 22.5% to RMB400.73 million, accounting for 78.3% of group turnover versus 87.4% a year ago. Middling-coal and sludge-coal sales dropped to RMB33.01 million and RMB19.96 million respectively, while raw-coal and coal-trading added RMB55.82 million of new turnover.

Gross profit halved to RMB86.54 million, with margin compressing to 16.9% from 28.4% amid higher unit costs and greater low-margin trading activities. Distribution and selling expenses eased 4.9% to RMB37.54 million, but administrative costs fell only 10.0% to RMB69.53 million.

Total coal output slid 20.1% to 748,000 tonnes as utilisation at the Hongguo and Xiejiahegou mines was hit by geological faults and seam thinning; overall utilisation dropped to 26% from 33%. The Baogushan mine offset some of the decline, raising production 27.0% year on year.

Operating cash outflow widened to RMB261.98 million. Cash and cash equivalents stood at RMB39.92 million, down from RMB70.50 million at end-2025. Total bank and other borrowings rose to RMB1.07 billion, lifting the gearing ratio to 0.37 from 0.36. Capital commitments for property, plant and equipment were RMB60.79 million.

The group’s 49%-owned associate, Panzhou Power Generation Company, contributed a RMB7.19 million profit following the commercial start-up of its two 660 MW low-calorific-value coal power units.

PER ENERGY’s board declared no interim dividend. The company highlighted ongoing regulatory safety inspections, modest provincial coal-price recovery and plans to tighten cost controls, pursue technological upgrades and evaluate adjacent mine integration to bolster competitiveness in the second half of 2026.