Li Wei Attends Yankuang Energy 2025 Annual Results Briefing

On the morning of March 30, Yankuang Energy (stock code: 600188.SH; 1171HK) held its 2025 annual results briefing in Hong Kong. Li Wei, Secretary of the CPC Shandong Energy Committee and Chairman of Shandong Energy Group, as well as Chairman of Yankuang Energy, together with Wang Jiuhong, Secretary of the CPC Yankuang Energy Committee, Director and General Manager of Yankuang Energy, and the senior management of Yankuang Energy and Yancoal Australia, attended the meeting. They presented Yankuang Energy 2025 operating results to domestic and overseas investors, analysts and journalists, and provided in-depth responses to key concerns of the capital market.

Li Wei stated that in 2025, amid a severe and complex market environment, Yankuang Energy coordinated efforts in strategic planning, industrial upgrading, lean management and capital operation. Yankuang Energy achieved leapfrog growth in production capacity and resource reserves, firmly stabilized business fundamentals, maintained steady improvement in operation and management, and continuously enhanced development momentum. In accordance with International Financial Reporting Standards (IFRS), Yankuang Energy recorded annual sales revenue of RMB133.34 billion yuan and a net profit of RMB8.52 billion yuan. The annual cumulative dividend reached RMB0.5 yuan per share, with dividend disbursement totaled RMB5.02 billion yuan.

Li Wei highlighted the development achievements in five major business segments. In 2025, Yankuang Energy actively integrated into the national modern industrial system, with the five business segments advancing in tandem and delivering improved quality and efficiency. The mining segment produced 182 million tons of commercial coal, hitting a new historical high. Of which, Shandong and Xinjiang bases maintained stable output; Shaanxi-Inner Mongolia base became the core driver of output and profit growth; the acquisition of Northwest Mining contributed substantial incremental output; and the Australia base achieved record-high production. Against drastic fluctuations in international energy prices, the chemical segment delivered outstanding economic value, serving as a key supplement to extend industrial chains and offset periodic shortages of energy and chemical products. The annual output of chemical products reached 9.77 million tons, a year-on-year increase of 8.5%. Its attributable net profit stood at RMB1.58 billion yuan, surging by 295% year on year, fully unlocking the synergies of the "coal-chemical integration" strategy. Emerging industries including high-end equipment manufacturing, smart logistics and new energy achieved breakthroughs across multiple areas, realized synchronous growth in size, growth rate and economic benefits, and fostered new growth drivers.

Facing cyclical industry fluctuations, Shandong Energy further advanced lean management. The average sales cost per ton of coal dropped by 7% year on year, delivering a total cost reduction and efficiency gain of RMB3.5 billion yuan. The average financing interest rate fell to a historic low of 2.46%, and the asset-liability ratio was optimized to 62.2%, steadily consolidating operational resilience. In terms of ESG performance, Yankuang Energy’s MSCI ESG rating was upgraded to BBB, the highest rating exclusively in the coal industry, underscoring its remarkable achievements in green development.

Regarding the 2026 market outlook, Li Wei mentioned that profound global changes unseen in a century are accelerating, and geopolitical conflicts continue to reshape the global energy supply landscape. It is expected that China’s coal market will maintain a relatively balanced supply-demand pattern with periodic tightness in 2026, with the overall price center moving upward compared with 2025, while prices of coal chemical products will increase rapidly.

Looking back on the development of the 14th Five-Year Plan period, Li Wei noted that Yankuang Energy consolidated its local business, expanded cross-regional layout and accelerated global expansion. It successfully advanced three key campaigns focusing on stable production efficiency, cost control and project construction, delivering high-quality development with steady progress and improved quality. Compared with the end of the 13th Five-Year Plan, coal and chemical output rose by 52% and 114% respectively. The total accumulated profit reached RMB155.1 billion yuan, with an average annual net profit of RMB17.5 billion yuan, cumulative dividends of RMB55.5 billion yuan, and a market value increase of 348%.

Standing at the new starting point of the 15th Five-Year Plan, Yankuang Energy will focus on high-quality development, consolidate the foundation of stability by strengthening pillar industries, stimulate development momentum by expanding emerging businesses, and enhance comprehensive benefits through in-depth capital operation. Yankuang Energy will accelerate the construction of four ultra-large 80-million-ton coal production bases in Inner Mongolia, Shaanxi-Gansu, Xinjiang and Australia, striving to raise raw coal output to over 300 million tons by the end of the 15th Five-Year Plan. Meanwhile, it will further integrate into the national strategic planning of modern coal chemical industry, promote coordinated and differentiated development of four major chemical bases in Shandong, Shaanxi, Inner Mongolia and Xinjiang, and target a proportion of high-end chemical products exceeding 70% by the end of the 15th Five-Year Plan. Besides, Yankuang Energy will continuously expand emerging industries such as high-end equipment manufacturing, smart logistics and new energy, build a diversified, intensive and efficient modern industrial cluster, and forge a second growth curve for high-quality development.

During the Q&A session, the capital market showed strong interest in Yankuang Energy’s strategic planning and development prospects. In-depth discussions were conducted on core topics including the 300-million-ton raw coal output target, the strategic positioning and high-end transformation path of the coal chemical industry, as well as dividend policies. In particular, amid the turbulent energy landscape, the overall layout, medium and long-term development plans and key projects of the coal chemical industry became the core focus of domestic and overseas investors. The management systematically elaborated on the chemical industry’s development direction of "large-scale, high-end, low-carbon and park-based operation", with a clear roadmap of clustering in resource-rich regions, extending to high-end industrial chains and advancing green and low-carbon transformation, further clarifying the strategic positioning and core value of the coal chemical segment.

In addition, the cultivation of emerging industries and global resource allocation also attracted wide attention. The management responded thoroughly to market concerns, fully demonstrating firm confidence in high-quality development and long-term strategic goals. All participants widely recognized Yankuang Energy for its clear strategy, strong operational resilience and sustainable shareholder returns against the backdrop of profound adjustments in the global energy landscape.

The briefing was held in a hybrid offline and online format, attracting extensive attention from domestic and overseas capital markets, with more than 350 investors, analysts and media representatives in attendance. Following the event, Shandong Energy’s roadshow team will hold a series of one-on-one and group meetings to communicate directly with investors, further promote its operating performance and development prospects, and deliver expectations of high growth and sustainable high shareholder returns.