CHINA QINFA (00866) has issued a profit alert, indicating that its net profit after tax for the six months ending June 30, 2026, is expected to be no more than 290 million yuan. This marks a significant increase from the 31 million yuan profit recorded from continuing operations in the same period of the previous year.

The company attributed the sharp rise in net profit after tax to several key factors. First, the average coal sales price during the period was higher compared to the same period in 2025. Second, raw coal production from continuing operations surged to 4.14 million tons during the period, up from 2.05 million tons in the prior corresponding period. Third, washed coal production from continuing operations increased to 2.14 million tons, compared to 1.24 million tons previously.

Additionally, the company experienced a reduction in exchange losses. The depreciation of the Indonesian rupiah against the Chinese yuan and the US dollar resulted in exchange losses of approximately 55 million yuan from settling and translating monetary items, a decrease of 16 million yuan from the 71 million yuan loss recorded in the previous year. Finally, the company benefited from a change in estimated liabilities, recording a gain of approximately 165 million yuan during the period.