China Coal Energy's 2025 revenue drops 21.83%, net profit decreases 7.27%, plans to distribute dividends of 5.074 billion yuan

Economic Observer

The 2025 annual report of China Coal Energy published by Economic Observer shows that, against the backdrop of a decline in operating revenue, the company improved profitability and strengthened expense control, resulting in a net profit decline far smaller than the revenue decline, while maintaining steady cash flow and its dividend policy.

Performance and operating conditions

Against the backdrop of a 21.83% year-on-year decline in operating revenue, the company’s net profit attributable to shareholders fell by 7.27% year on year, significantly less than the revenue decline. The gross margin rose to 27.49%, representing an increase of 10.57 percentage points year on year; the net profit margin was 14.75%, up 12.12 percentage points year on year. In the fourth quarter alone, the company’s net profit attributable to shareholders reached RMB 5.399 billion, up 15.57% year on year, indicating that quarterly performance rebounded.

Financial position

Net cash flow from operating activities for the full year was RMB 29.792 billion. As of the end of the reporting period, the company’s current ratio was 1.07, the quick ratio was 1, and the cash ratio was 82.63%. The solvency indicators show that the company’s financial structure is sound. Total period expenses were RMB 8.366 billion, accounting for 5.65% of operating revenue. Of these, finance costs decreased by 16.2% year on year, mainly due to lower interest expense; administrative expenses decreased by 3.8% year on year, reflecting improved cost control.

Product R&D progress

R&D expenses were RMB 886 million, up 10.6%. The number of R&D personnel was 2,254, accounting for 5% of the total number of employees; the proportion of employees with an undergraduate degree or above exceeded 90%, making the team relatively young.

Company profile

The company plans to distribute a cash dividend of RMB 0.217 per share (including tax). Together with the interim dividend, the total dividend payout for the full year will be RMB 5.074 billion, accounting for 35% of net profit attributable to shareholders.

Institutional views

Some research reports show that securities analysts generally expect the company’s net profit attributable to shareholders in 2026 to be about RMB 20.469 billion, with an average earnings per share (EPS) expected to be RMB 1.54, indicating the market’s expectations for a rebound in subsequent performance.

The information above is compiled from publicly available sources and does not constitute investment advice.

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