YANKUANG ENERGY (01171) stock surged 5.19% in the pre-market trading session on Monday, building on its earlier gains. This significant rise comes despite the company reporting a decline in its 2025 interim results, with sales revenue down 13.17% year-on-year to RMB 53.966 billion and shareholders' attributable profit falling 38.7% to RMB 4.731 billion.

Investors appear to be reacting positively to the company's shareholder-friendly moves. YANKUANG ENERGY has proposed an interim dividend of RMB 0.18 per share (before tax), amounting to a total dividend payout of RMB 1.8 billion. Additionally, the company has announced plans to repurchase shares, allocating RMB 50-100 million for A-share repurchases and RMB 150-400 million for H-share repurchases. The controlling shareholder has also committed to maintaining their current holdings and potentially increasing them when appropriate.

Further boosting investor confidence is the company's recent acquisition of Northwest Mining, which has significantly expanded YANKUANG ENERGY's coal resources. The acquisition added 6.352 billion tons of coal resources and increased recoverable reserves by 3.652 billion tons. Minsheng Securities analysts note that with Northwest Mining's consolidation expected in Q3 2025 and anticipated coal price recovery in the second half of the year, the company's performance is likely to improve. This expansion, combined with YANKUANG ENERGY's diverse coal production capabilities, positions the company to meet various market demands effectively.