China Qinfa Group (China Qinfa) reported a sharp turnaround for the six months ended 30 June 2026, driven by stronger Indonesian coal prices and a one-off provision reversal.
• Revenue climbed 8.23% YoY to RMB 1.18 billion, supported by a 4% rise in coal trading volume to 2.59 million tonnes and a 22% jump in average selling price to RMB 455 per tonne.
• Gross profit surged 80.23% YoY to RMB 427.57 million, lifting the gross margin to 36.3% from 21.8% a year earlier.
• Operating profit expanded almost five-fold to RMB 382.93 million. Results were buoyed by a RMB 165.01 million gain from the revision of provisions, which more than offset a RMB 55.38 million foreign-exchange loss linked to Indonesian rupiah weakness.
• Net finance costs increased to RMB 64.46 million, reflecting higher interest on unwinding of discount.
• Profit after tax from continuing operations jumped to RMB 284.76 million versus RMB 30.98 million in 1H 2025; profit attributable to equity shareholders rose to RMB 227.20 million (1H 2025: RMB 24.25 million).
• EBITDA more than tripled to RMB 522.70 million from RMB 164.59 million.
Balance-sheet highlights show net current assets of RMB 91.27 million and a current ratio of 1.06 (31 Dec 2025: 1.15). Net gearing eased to 55.8% from 59.5% as property, plant and equipment grew to RMB 4.10 billion. Capital expenditure totalled RMB 1.02 billion, largely for Indonesian mine development; contracted but unspent capex stood at RMB 269.83 million.
During the period, China Qinfa completed a HK$309.6 million share placement, earmarking proceeds mainly for Indonesian mine expansion. Cash and cash equivalents fell to RMB 313.73 million after heavy investment outlays.
No interim dividend was declared.
Looking ahead, management expects the global thermal-coal market to remain tight as Indonesia’s 2026 production quota cuts and new export rules constrain supply, while Asian summer demand underpins prices. The company will focus on ramping up output at the SDE mine, optimise product mix with higher washed-coal volumes, and advance the development of TSE mine 1.