Shaanxi Heimao Coking Co Ltd

Shaanxi Heimao released its 2026 interim report, with total operating revenue of 5.051 billion yuan, down 3.49% year-on-year, and net profit attributable to the parent company of negative 366 million yuan. Net cash inflow from operating activities was 77.2422 million yuan, the asset-liability ratio was 64.92%, gross margin was negative 2.24%, ROE was negative 7.70%, and diluted earnings per share was negative 0.18 yuan. The company had 92,800 shareholders, and the top ten shareholders held 65.64% of the total share capital.

Shaanxi Heimao has issued its 2026 half-year earnings forecast, projecting a net loss attributable to the parent company of 340 million to 400 million yuan for the first half. A company representative said the fundamental reason for the earnings pressure is that the price of upstream coking coal raw materials has risen significantly more than the selling price of coke, making it difficult to effectively pass on raw material cost pressure downstream and squeezing profit margins. Liu Lulu, an analyst at Sublime China Information, noted that domestic coke prices were generally strong and rising in the first half, with the mainstream ex-factory price of quasi-first-grade dry-quenched coke in Shanxi up 24.76 percent from the end of last year, but coking coal mine-mouth prices surged rapidly, with the mine-mouth price of low-sulfur primary coking coal in Lüliang rising a cumulative 26.23 percent. Driven by costs, coke prices completed eight rounds of increases but still failed to reverse the company's main business losses. The company said that due to the influence of the upstream coal and downstream steel industries, the increase in coke prices still lagged the increase in raw material coal prices, and it expects coke price trends in the second half to show a slight pullback in the third quarter and strengthen again in the fourth quarter.