CHINA QINFA (00866) issues a profit warning, expecting mid-term after-tax profit not to exceed 290 million yuan.

CHINA QINFA (00866) announced that the group expects to record an after-tax profit of no more than RMB 290 million for the six months ending June 30, 2026, compared to an after-tax profit of RMB 31 million from continuing operations for the six months ended June 30, 2025. The increase in the groups after-tax profit is mainly due to the following factors: (i) the average coal selling price during this period increased compared to the same period in 2025; (ii) the raw coal production from continuing operations increased from 2.05 million tons for the six months ended June 30, 2025, to 4.14 million tons during this period; (iii) the washed coal production from continuing operations increased from 1.24 million tons for the six months ended June 30, 2025, to 2.14 million tons during this period; (iv) the exchange loss during this period decreased by RMB 16 million compared to the same period in 2025. The depreciation of the Indonesian rupiah against the RMB and USD resulted in an exchange loss of approximately RMB 55 million (2025: RMB 71 million) arising from monetary items and the translation of monetary items; and (v) an estimated gain from changes in liabilities of approximately RMB 165 million was recorded during this period.