China Coal Xinji Energy Co Ltd

The coal sector rallied again in afternoon trading, with Dayou Energy hitting limit up in a bullish reversal, marking its second limit-up in four sessions. Earlier, Shanghai Energy and Meijin Energy hit limit up, while Xinji Energy and Haohua Energy rose in tandem. On the news front, Shanghai Energy's 2026 interim report showed first-half revenue of 4.45 billion yuan, up 27.21 percent year on year, and net profit attributable to shareholders of 283 million yuan, up 38.02 percent. A research note from Guosheng Securities said the pace of coal mine resumption in Shanxi remains slow, supply stays tight, downstream demand is solid, and most mines are struggling to meet demand. Combined with rising futures prices and strong market sentiment, coking coal prices have repeatedly hit new highs for the year, and this trend is expected to continue in the short term.

Xinji Energy released its 2026 semi-annual report, achieving operating revenue of 7.892 billion yuan, up 35.82% year on year; net profit attributable to shareholders of the listed company was 1.217 billion yuan, up 32.27% year on year. The performance growth was mainly due to a 7.27% year-on-year increase in commercial coal sales volume, an 84.55% increase in power generation, and an 85.15% increase in on-grid electricity. The company's second-quarter net profit was 669 million yuan, and first-quarter net profit was 548 million yuan, implying a quarter-on-quarter increase of 22% in second-quarter net profit.

Xinji Energy released its 2026 interim report, achieving operating revenue of 7.892 billion yuan, up 35.82% year on year. Net profit attributable to the parent company was 1.217 billion yuan, up 32.27%, and net profit after deducting non-recurring items was 1.222 billion yuan, up 30.75%. Net cash flow from operating activities was 2.228 billion yuan, up 36.98%. The company produced 10.2543 million tonnes of commercial coal, up 3.19%, and sold 10.12 million tonnes, up 7.27%. As newly built coal-fired power projects in Shangrao, Chuzhou, and Lu'an entered commercial operation, the company's power generation reached 12.302 billion kilowatt-hours, surging 84.55% year on year, while on-grid electricity was 11.624 billion kilowatt-hours, up 85.15%. The company said the earnings growth mainly benefited from a tight supply-demand balance in the domestic coal market, a higher price centre for thermal coal, and a significant increase in power revenue brought by the newly commissioned power plants. Looking ahead to the second half of the year, the company cautioned that coal prices still face downward pressure, and that close attention should be paid to the impact of coal price trends on gross margins, as well as the capacity utilisation rates of new power projects and the collection of electricity fees.

In early trading on July 20, the three major A-share indices rose. The Shanghai Composite Index gained 1.18%, the Shenzhen Component Index rose 0.21%, and the ChiNext Index climbed 1.13%. Combined turnover on the two exchanges reached 1.67 trillion yuan, with over 2,900 stocks advancing. Sectors such as oil and gas, baijiu, and coal led the gains, while the power sector rebounded collectively. Jiawei New Energy, Huayin Electric Power, and Fuling Electric Power hit their daily limit up. Kweichow Moutai surged over 5% to 1,322.97 yuan. Before the market opened, multiple companies in the power and coal sectors announced plans to increase holdings or conduct buybacks. SDIC Power's controlling shareholder plans to increase its stake by 150 million yuan within six months. China Coal Energy's controlling shareholder plans to increase holdings by 50 million to 100 million yuan within 12 months. NARI Technology's chairman proposed a buyback of 500 million to 1 billion yuan. China Shenhua Energy announced a 2026 coal sales volume target of 618.1 million tonnes, a power generation target of 288.1 billion kilowatt-hours, and an operating revenue target of 360 billion yuan. Longyuan Power plans to distribute annual cash dividends of no less than 30% of net profit attributable to the parent company from 2025 to 2027. In addition, Aluminum Corporation of China's controlling shareholder plans to increase holdings by 1 billion to 2 billion yuan, and CRRC Corporation's controlling shareholder plans to increase holdings by 150 million to 300 million yuan. Both stocks rose over 6% in early trading.

Xinji Energy released its semi-annual operating data. In the first half, commercial coal sales reached 10.12 million tonnes, up 7.27% year-on-year. Power generation totalled 12.302 billion kilowatt-hours, an increase of 84.55% over the same period last year.

China's A-share market saw mixed performance on July 6, with the Shanghai Composite Index edging down 0.06 percent to 4,041.24 points and the ChiNext Index falling 1.77 percent. Combined turnover on the two exchanges reached approximately 3.11 trillion yuan. The coal sector rallied in the afternoon, with Haohua Energy hitting its daily limit at the close, Xinji Energy surging nearly 9 percent, and Shaanxi Coal Industry climbing over 7 percent. The pharmaceutical sector was strong, with innovative drug concepts standing out. Shouyao Holdings briefly surged by the 20 percent daily limit, and Gan & Lee Pharmaceuticals hit its daily limit. The PCB concept slumped sharply, with Sinoma Science & Technology, China Jushi, and Haohua Science & Technology all hitting their daily limit down. Reports indicate that Nvidia's next-generation Kyber NVL144 rack architecture may face delivery delays of more than 12 months due to manufacturing process challenges with PCB mid-boards, pushing mass production back to 2028.