China Coal Energy Company Limited

Q1–Q3 2026 headline performance (core “good”): Operating revenue CNY 115.636bn (+4.6% YoY); total profit CNY 19.0bn (+4.9%); net profit attributable CNY 12.7bn (+2.1%); basic EPS CNY 0.96 (+2.1%). Operating cash flow CNY 22.5bn (+6.9% YoY)—overall cash generation remains solid.

Margins/volume drivers—price rebound offset by production constraints (mixed): - Company completed coal production 93.38m tonnes and sold 182m tonnes (self-produced commercial coal 93.59m tonnes). Major product sales were 4.62m tonnes; chemicals sales 4.85m tonnes. - Selling prices rebounded strongly: commercial coal CNY 557/t (+17.5%); thermal coal CNY 514/t (+17.4%); coking coal CNY 1,192/t (+29.4%); PO CNY 7,258/t (+10.9%). (Urea and ammonium nitrate were down slightly.) - Management emphasized profit improvement mainly from higher coal prices (stated +CNY 7.7bn from higher self-produced coal selling prices) and chemical segment profit increase (+CNY 1.2bn); offset by lower sales/production volume and higher unit costs.

Cost structure and Q4 outlook—investors should note “rigid cost + safety-driven fixed cost” (key risk/negative): - Unit sale cost pressures were attributed to declining production volume, which raised unit costs; also labor and maintenance costs can increase toward year-end due to stricter safety requirements. - CFO noted labor cost rose QoQ in Q3 due to transition from outsourcing to self-operated labor and bonus adjustments, while acknowledging a meaningful portion of costs is “rigid (>60%)”—so costs can’t be smoothly pressed down. - Q4 guidance: they plan to keep costs within the beginning-of-year budget’s reasonable range, but uncertainty in Q4 production/volume could cause further fluctuations.