Perennial Energy Holdings Limited reported a sharp reversal in performance for the year ended 31 December 2025, posting a net loss of RMB197.80 million versus a RMB440.23 million profit a year earlier. The downturn was driven by weaker coal prices and a large impairment on mining assets.
Revenue fell 29.3% year-on-year to RMB1.21 billion, reflecting lower average selling prices across all product categories. Clean-coal sales, which contributed 86.8% of total revenue, dropped 32.5% to RMB1.05 billion as the average price slid 31.2% to RMB1,225 per tonne. Total coal product sales volumes rose 7.4% to 1.52 million tonnes, but this failed to offset price pressure.
Gross profit slumped 59.3% to RMB359.87 million, pushing the gross margin down 22.1 percentage points to 29.8%. The margin contraction stemmed from softer pricing and higher underground preparation and waste-disposal costs.
A RMB204.59 million impairment on the Xiejiahegou Coal Mine’s mining rights and fixed assets, booked after a value-in-use review, further weighed on earnings. Finance costs edged 1.7% lower to RMB49.39 million, while distribution and administrative expenses declined 9.2% and 5.3%, respectively, on tighter cost controls.
Basic loss per share came in at RMB12.36 cents (2024: earnings of RMB27.51 cents). The Board proposed no final dividend.
OPERATING HIGHLIGHTS • Raw-coal output rose 10% to 1.87 million tonnes, supported by expanded capacity at Hongguo and Baogushan mines. • Utilisation rates fell to 59% at Hongguo (–18 ppt) and 82% at Xiejiahegou (–18 ppt), while Baogushan improved to 67% (+11 ppt). • The average selling price of middling coal slipped 4.0% to RMB383 per tonne; sludge-coal price decreased 7.9% to RMB105 per tonne. • Coalbed methane gas sales declined 22.9% to 18.16 million cubic metres, with the average price down 5.6% to RMB170 per thousand m³.
BALANCE-SHEET AND LIQUIDITY • Cash and cash equivalents stood at RMB70.50 million (2024: RMB177.08 million). • Total bank and other borrowings were RMB1.05 billion, down from RMB1.19 billion. • Net assets totalled RMB2.96 billion; gearing ratio improved slightly to 0.36 (2024: 0.38). • The Group held net current liabilities of RMB670.48 million but retained RMB531.78 million in unutilised bank facilities.
ASSOCIATE & PROJECT UPDATES Perennial Energy’s 49%-owned Panzhou Power Generation Company continued construction of two 660 MW low-calorific-value coal units. Unit 1 began trial operation in March 2026, with commercial launch expected after regulatory approvals; Unit 2 remains on track for mid-2026 completion. The associate contributed a RMB17.75 million loss during 2025.
POST-BALANCE-SHEET EVENT On 20 January 2026, subsidiary Jiutai Bangda agreed to inject RMB114.49 million in assets into Guizhou Huaneng Jiayuan Coal, acquiring 51% of the enlarged company and combining Xiejiahegou, Youyi and Jieji coal-mine resources, subject to approvals.
OUTLOOK Management noted that industry focus has shifted from capacity expansion to structural optimisation and efficiency. While national coal demand remains under pressure, policy support and infrastructure upgrades in Guizhou and Liupanshui are expected to underpin regional coal and energy development. The Group plans to leverage these initiatives, advance smart-mining upgrades and pursue consolidation opportunities to stabilise long-term performance.