Core Viewpoint - China Qinfa (00866) reported a significant increase in revenue but faced a net loss for the first half of 2025, indicating challenges in profitability despite revenue growth [1] Financial Performance - The company achieved revenue of RMB 1.089 billion, representing a year-on-year increase of 120.79% [1] - The loss attributable to shareholders was RMB 126 million, compared to a profit of RMB 43.02 million in the same period last year [1] - The loss per share was 5.08 cents [1] Business Segments - For the first half of 2025, the net loss was RMB 163 million, with a profit from continuing operations of RMB 31 million [1] - The discontinued operations incurred a loss of RMB 194 million, while the same period in 2024 showed a net profit of RMB 60.8 million, with continuing operations reporting a loss of RMB 43 million and discontinued operations a profit of RMB 104 million [1]

[Company Information and Financial Highlights](index=1&type=section&id=Company%20Information%20and%20Financial%20Highlights) This section provides an overview of the company and its key financial highlights [Company Overview](index=1&type=section&id=Company%20Overview) China Qinfa Group Limited (00866) announced H1 2025 interim results, with no interim dividend recommended - Company Name: CHINA QINFA GROUP LIMITED, Stock Code: **00866**[2](index=2&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) H1 2025 saw significant revenue growth from continuing operations, but overall net loss widened due to discontinued operations, while profitability of continuing operations improved with basic earnings per share turning positive Financial Highlights for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue from continuing operations | 1,089 | 493 | Increase 596 | | Net loss/(profit) | (162.7) | 60.8 | Loss widened | | - Profit from continuing operations | 31.0 | (43.0) | Turnaround to profit | | - Loss/(profit) from discontinued operations | (193.7) | 103.8 | Loss widened | | Profit from continuing operations attributable to equity holders of the Company | 24 | (43) | Increase 67 | | Basic earnings/(loss) per share from continuing operations | RMB **0.85** cents | RMB (**1.83**) cents | Turnaround to profit | | EBITDA from continuing operations | 165 | 29 | Increase 136 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including the statement of comprehensive income and statement of financial position [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue from continuing operations significantly increased, leading to higher gross profit, but overall net loss for the period was driven by losses from discontinued operations, with foreign currency translation differences also negatively impacting comprehensive income Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Revenue from continuing operations | 1,089,414 | 493,413 | | Cost of sales | (852,258) | (354,225) | | Gross profit | 237,156 | 139,188 | | Operating profit/(loss) | 76,855 | (5,195) | | Net finance (costs)/income | (34,461) | 6,011 | | Profit before tax | 42,394 | 816 | | Income tax expense | (11,412) | (43,839) | | Profit/(loss) for the period from continuing operations | 30,982 | (43,023) | | Loss/(profit) for the period from discontinued operations | (193,734) | 103,830 | | Loss/(profit) for the period | (162,752) | 60,807 | | Exchange differences arising from translation of foreign operations | (30,993) | 16,898 | | Total comprehensive loss/(income) for the period | (193,745) | 77,705 | | Loss/(profit) for the period attributable to equity holders of the Company | (126,076) | 43,022 | | Loss/(profit) for the period attributable to non-controlling interests | (36,676) | 17,785 | Basic and Diluted Earnings/(Loss) Per Share | Metric | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Basic (loss)/earnings per share (continuing and discontinued) | RMB (**5.08**) cents | RMB **1.62** cents | | Diluted (loss)/earnings per share (continuing and discontinued) | RMB (**5.08**) cents | RMB **1.62** cents | | Basic earnings/(loss) per share (continuing operations) | RMB **0.85** cents | RMB (**1.83**) cents | | Diluted earnings/(loss) per share (continuing operations) | RMB **0.85** cents | RMB (**1.83**) cents | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, both non-current assets and current liabilities decreased, net current assets turned positive from negative, and net assets slightly decreased, with assets and liabilities of discontinued operations separately presented Key Data from Condensed Consolidated Statement of Financial Position | Metric (RMB thousand) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 3,711,709 | 6,553,745 | | Current assets | 5,789,135 | 2,075,584 | | Assets classified as held for sale | 3,525,856 | – | | Current liabilities | (4,969,273) | (4,170,532) | | Liabilities directly associated with assets classified as held for sale | (3,612,242) | – | | Net current assets/(liabilities) | 819,862 | (2,094,948) | | Total assets less current liabilities | 4,531,571 | 4,458,797 | | Non-current liabilities | (1,286,270) | (972,552) | | Net assets | 3,245,301 | 3,486,245 | | Total equity attributable to equity holders of the Company | 1,766,218 | 1,971,799 | | Non-controlling interests | 1,479,083 | 1,514,446 | | Total equity | 3,245,301 | 3,486,245 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the financial statements, covering accounting policies, estimates, segment reporting, and specific financial line items [Company Background and Basis of Preparation](index=7&type=section&id=Company%20Background%20and%20Basis%20of%20Preparation) China Qinfa Group Limited, incorporated in the Cayman Islands, primarily engages in coal mining and trading in China and Indonesia, with its condensed consolidated financial statements prepared under IAS 34 and Listing Rules on a going concern basis - The Company was incorporated in the Cayman Islands on **March 4, 2008**, and listed on the Main Board of the Hong Kong Stock Exchange on **July 3, 2009**[11](index=11&type=chunk) - The Group's principal business activities include coal mining, coal trading, coal washing, coal storage, and coal blending in China and Indonesia[11](index=11&type=chunk) - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard **34** and the Listing Rules of the Stock Exchange, and on a going concern basis[13](index=13&type=chunk)[16](index=16&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) During this interim period, the Group first adopted the revised IAS 21 "Lack of Exchangeability," which had no significant impact on its financial position or performance - The Group first adopted the revised International Accounting Standard **21** 'Lack of Exchangeability,' which became effective for annual periods beginning on or after **January 1, 2025**[17](index=17&type=chunk) - The application of the revised International Financial Reporting Standards had no significant impact on the Group's financial position and performance during the current and prior periods[17](index=17&type=chunk) [Estimates](index=8&type=section&id=Estimates) The preparation of condensed consolidated financial statements involves management judgments, estimates, and assumptions, which are consistent with those used in the consolidated financial statements for the year ended December 31, 2024 - The preparation of condensed consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of accounting policies, assets and liabilities, and income and expenses[18](index=18&type=chunk) - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied to the consolidated financial statements for the year ended **December 31, 2024**[18](index=18&type=chunk) [Segment Reporting](index=8&type=section&id=Segment%20Reporting) The Group has only one reportable segment, the coal business, operating primarily in China and Indonesia, with a coal mining business segment in mainland China classified as a discontinued operation in H1 2025 - The Group has only one reportable segment (coal business), primarily operating in China and Indonesia, and derives the vast majority of its revenue from external customers in China and Indonesia[19](index=19&type=chunk) - During the period, a coal mining business segment operating in mainland China was classified as a discontinued operation[21](index=21&type=chunk) [Segment Results, Assets and Liabilities](index=9&type=section&id=Segment%20Results,%20Assets%20and%20Liabilities) The coal business segment saw significant growth in external customer revenue and profit before tax in H1 2025, but segment assets and liabilities decreased Coal Business Segment Performance | Metric (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue from external customers | 1,089,414 | 493,413 | | Reportable segment profit before tax | 87,751 | 389 | Coal Business Segment Assets and Liabilities | Metric (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Reportable segment assets | 5,948,704 | 8,531,314 | | Reportable segment liabilities | (5,665,088) | (7,332,228) | [Reconciliation of Reportable Segment Revenue, Profit Before Tax, Assets and Liabilities](index=10&type=section&id=Reconciliation%20of%20Reportable%20Segment%20Revenue,%20Profit%20Before%20Tax,%20Assets%20and%20Liabilities) The reconciliation shows that unallocated head office and corporate expenses and net finance costs significantly impacted consolidated profit before tax, while the classification of assets and liabilities related to discontinued operations also affected consolidated totals Reconciliation of Profit Before Tax | Metric (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Reportable segment profit before tax | 87,751 | 389 | | Unallocated head office and corporate expenses | (10,896) | (5,584) | | Net finance (costs)/income | (34,461) | 6,011 | | Consolidated profit before tax | 42,394 | 816 | Reconciliation of Assets | Metric (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total reportable segment assets | 5,948,704 | 8,531,314 | | Assets related to discontinued operations | 3,525,856 | – | | Total consolidated assets | 9,500,844 | 8,629,329 | Reconciliation of Liabilities | Metric (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total reportable segment liabilities | 5,665,088 | 7,332,228 | | Liabilities related to discontinued operations | 3,612,242 | – | | Total consolidated liabilities | 6,255,543 | 5,143,084 | [Geographical Information](index=11&type=section&id=Geographical%20Information) All of the Group's external customer revenue is derived from China and Indonesia, with the geographical location of non-current assets showing a significant increase in Indonesia and a notable decrease in China (including Hong Kong) - All of the Group's external customer revenue is derived from the countries where the Group's entities are located (i.e., China and Indonesia)[28](index=28&type=chunk) Geographical Location of Non-current Assets | Region (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | China (including Hong Kong) | 190,800 | 4,241,743 | | Indonesia | 3,520,909 | 2,312,002 | | Consolidated non-current assets | 3,711,709 | 6,553,745 | [Revenue](index=12&type=section&id=Revenue) Revenue from the sale of goods for continuing operations is recognized when control of the goods is transferred upon delivery, completing the performance obligation - Revenue from the sale of goods for continuing operations is recognized when control of the goods is transferred at a point in time, and the performance obligation is satisfied upon delivery of the goods[31](index=31&type=chunk) [Other Income, Gains and Losses](index=12&type=section&id=Other%20Income,%20Gains%20and%20Losses) Other income, gains, and losses from continuing operations primarily consist of net exchange losses and government grants, with net exchange losses decreasing in H1 2025 Other Income, Gains and Losses from Continuing Operations | Metric (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Net exchange losses | 70,821 | 74,013 | | Government grants | (1,502) | (1,579) | | Others | (3,651) | (72) | | Total | 65,668 | 72,345 | - Government grants are primarily financial subsidies received under government grant programs for business development, conditional on the entity maintaining its principal place of business within a designated area for **ten** years[32](index=32&type=chunk) [Profit Before Tax](index=13&type=section&id=Profit%20Before%20Tax) Profit before tax from continuing operations is stated after deducting depreciation and amortization expenses, with a significant increase in depreciation of property, plant, and equipment Deductions from Profit Before Tax | Metric (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 83,024 | 29,644 | | Depreciation of right-of-use assets | 3,473 | 3,030 | | Amortization of coal mining rights | 1,242 | – | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense from continuing operations primarily includes China corporate income tax, Indonesia withholding income tax, and Indonesia final income tax, with a significant decrease in H1 2025 Income Tax Expense from Continuing Operations | Metric (RMB thousand) | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | China corporate income tax | 555 | 51,688 | | Indonesia withholding income tax | 8,994 | – | | Indonesia final income

Investment Rating - The report maintains an "Overweight" rating for the coal mining industry [5]. Core Viewpoints - The Asian metallurgical coal market is expected to continue its recovery in Q3 2025, supported by post-monsoon inventory replenishment in India and potential rebounds in the Chinese domestic market [2]. - Despite supply pressures from adverse weather and safety issues in Australian mining, the overall outlook for the metallurgical coal market remains positive [2]. Summary by Sections Industry Overview - Global energy prices have shown mixed trends, with Brent crude oil futures at $67.73 per barrel, up by $1.88 (+2.85%) from the previous week, while WTI crude oil futures increased by $0.86 (+1.37%) to $63.66 per barrel [1]. - Natural gas prices in Northeast Asia rose to $11.705 per million British thermal units, an increase of $0.847 (+7.80%) [1]. Coal Price Trends - European ARA port coal prices increased by $3.0 to $101.8 per ton (+3.1%), while Newcastle port coal prices rose slightly by $0.2 to $112.3 per ton (+0.2%) [1]. - The IPE South African Richards Bay coal futures settled at $89.7 per ton, down by $0.5 (-0.4%) [1]. Investment Recommendations - Key recommendations include major coal enterprises such as China Coal Energy (H+A) and China Shenhua (H+A), with a focus on companies showing potential for turnaround like China Qinfa [3]. - High-performing stocks include Shaanxi Coal and Electricity, China Energy Investment, and Huai Bei Mining, while companies like Yancoal and Jinkong Coal are noted for their flexibility and potential for growth [3]. Market Dynamics - The report highlights a significant trend where China is transitioning from a coal importer to an exporter, driven by a surplus in the domestic market [8]. - The forecast for Q3 2025 anticipates that the price of high-quality low-volatile hard coking coal will average $178 per ton, with expectations of $181 per ton in the second half of 2025 [8].

Investment Rating - Maintain "Buy" rating for the coal mining industry [5] Core Viewpoints - The coal production in July 2025 reached a new low since May 2001, indicating a "reversal, not a rebound" in the market [1] - The report emphasizes that while coal production is expected to grow in 2025, the growth rate is projected to narrow to approximately 1.4% [1] - The report highlights the importance of government policies in stabilizing coal supply and prices, suggesting that recent measures could lead to a price bottoming out [4][33] Production Summary - In July 2025, the industrial raw coal production was 380 million tons, a year-on-year decrease of 3.8%, with a daily average production of 12.29 million tons [1][11] - For the first seven months of 2025, the total industrial raw coal production was 2.78 billion tons, showing a year-on-year increase of 3.8% [1][11] - The forecast for total thermal coal production in 2025 is around 3.88 billion tons, with a growth rate of 1.4% [1][11] Import Summary - In July 2025, coal imports were 35.609 million tons, a decrease of 22.9% compared to the same month last year [1][14] - For the first seven months of 2025, total coal imports were 257.305 million tons, reflecting a year-on-year decline of 13.0% [1][14] - The expected total thermal coal import level for 2025 is projected to be around 38 million tons, down 6.4% year-on-year [1][14] Demand Summary - In July 2025, the industrial power generation reached 926.7 billion kWh, a year-on-year increase of 3.1% [2][17] - The growth rate of industrial thermal power generation was 4.3%, accelerating by 3.2 percentage points compared to June [2][17] - Solar power generation saw a significant increase of 28.7% year-on-year, with a notable acceleration in growth [2][17] Investment Recommendations - The report suggests focusing on major coal enterprises such as China Shenhua and China Coal Energy, as well as companies with strong performance elasticity like Lu'an Mining and Jinneng Holding [4][33] - The report also highlights the potential of companies undergoing asset restructuring, such as Anyuan Coal Industry, and those with promising future growth like Huayang Co. and Gansu Energy [4][33]

董事會召開日期 中國秦發集團有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此宣佈 將於二零二五年八月二十七日（ 星期三 ）下午二時正假座中國香港灣仔港灣 道18號中環廣場57樓5703室舉行董事會會議，以（ 其中包括 ）審議及批准本 公 司 及其 附 屬 公 司 截至 二 零 二 五年 六 月 三 十 日止 六 個 月 之 中期 業 績 並 考慮 建議派發中期股息（ 如有 ）。 承董事會命 香 港 交易 及 結 算 所 有限 公 司 和 香港 聯 合 交 易 所有 限 公 司 對 本公 佈 的 內 容概 不 負 責， 對 其 準 確 性或 完 整 性 亦不 發 表 任 何 聲明 ， 並 明 確 表示 概 不 就 因本 公 佈 全部 或 任 何 部 分內 容 而 產 生或 因 依 賴 該 等內 容 而 引 致 的任 何 損 失 承擔 任何責任。 中 國 秦 發 集 團 有 限 公 司 CHINA QINFA GROUP LIMITED （ 於開曼群島註冊成立的有限公司） （股份代號︰00866） 徐達先生 香港，二零二五年八月十五日 於 本 公佈 日 期 ， 董 事會 成 員 包 括執 行 董 事 ...

Core Viewpoint - China Qinfa (00866) has issued a profit warning, expecting a net loss of no more than RMB 168 million for the six months ending June 30, 2025, compared to a net profit of RMB 60.8 million for the same period in 2024 [1] Financial Performance - The company anticipates a net loss of no more than RMB 200 million from discontinued operations and a net profit of no more than RMB 32 million from continuing operations for the upcoming reporting period [1] - The average coal sales price during the period is expected to decline compared to the same period in 2024, contributing to the increased net loss [1] - The production of raw coal from discontinued operations decreased from 3.67 million tons for the six months ending June 30, 2024, to 2.07 million tons for the upcoming period [1] - The production of raw coal from continuing operations increased from 760,000 tons for the six months ending June 30, 2024, to 2.05 million tons for the upcoming period [1]

中国秦发(00866)跌超8%，截至发稿，跌8.66%，报2.11港元，成交额2633.6万港元。 公告指出，集团除税后亏损增加主要由于以下因素的综合影响：该期间平均煤炭销售价较2024年同期下 降；已终止经营业务的原煤产量由截至2024年6月30日止6个月的367万吨减少至该期间的207万吨；及持 续经营业务的原煤产量由截至2024年6月30日止6个月的76万吨增加至该期间的205万吨。 消息面上，中国秦发发盈警，集团预期于截至2025年6月30日止6个月将取得除税后亏损不多于人民币 1.68亿元(业绩)，而于截至2024年6月30日止6个月则取得除税后溢利人民币6080万元。已终止经营业务 及持续经营业务应占该期间损益如下：已终止经营业务：该期间的除税后亏损不超过人民币2亿元;及持 续经营业务：该期间的除税后溢利不超过人民币3200万元。 ...

Core Viewpoint - China Qinfa (00866) has issued a profit warning, expecting a net loss of no more than RMB 168 million for the six months ending June 30, 2025, compared to a net profit of RMB 60.8 million for the same period in 2024 [1] Financial Performance - The company anticipates a net loss of no more than RMB 200 million from discontinued operations and a net profit of no more than RMB 32 million from continuing operations for the upcoming reporting period [1] - The average coal sales price during the period is expected to decline compared to the same period in 2024, contributing to the increased net loss [1] - The production of raw coal from discontinued operations decreased from 3.67 million tons for the six months ending June 30, 2024, to 2.07 million tons for the upcoming period [1] - The production of raw coal from continuing operations increased from 760,000 tons for the six months ending June 30, 2024, to 2.05 million tons for the upcoming period [1]

Group 1 - The core viewpoint of the news is that China Qinfa Group's stock price has significantly declined by 12.99% as of August 15, with a trading price of 2.01 yuan per share and a transaction volume of 7.2036 million yuan [1] - China Qinfa Group's main business includes the production, selection, transportation, sales, and trade of thermal coal, and the company is undergoing a transformation in line with national strategic shifts [1] - As of the 2024 annual report, China Qinfa's total operating revenue is 2.601 billion yuan, and net profit is 502 million yuan [1] Group 2 - On August 14, it was projected that the mid-year performance for 2025 would see a profit reduction, with an estimated loss of approximately 168 million yuan, representing a year-on-year decline of 376.32% [2]

Core Viewpoint - The company, Qinfa (00866), anticipates a significant increase in after-tax losses for the six months ending June 30, 2025, projecting losses not exceeding RMB 168 million, compared to an after-tax profit of RMB 60.8 million for the same period in 2024 [1] Financial Performance - The company expects after-tax losses from discontinued operations to be no more than RMB 200 million, while after-tax profits from continuing operations are projected to be no more than RMB 32 million for the same period [1] - The increase in after-tax losses is attributed to a decline in average coal sales prices compared to the same period in 2024, a reduction in raw coal production from discontinued operations from 3.67 million tons to 2.07 million tons, and an increase in raw coal production from continuing operations from 760,000 tons to 2.05 million tons [1] Currency Impact - The company's after-tax losses are also impacted by the depreciation of the Indonesian Rupiah against the Renminbi and US Dollar, resulting in foreign exchange losses of approximately RMB 70.8 million from monetary items [1]