Yuneng Holdings released its 2026 interim report on August 25. Hit by rising coal costs and shrinking revenue scale, the company posted declines in both revenue and profit for the reporting period, saw a sharp outflow of operating cash flow, and received a regulatory warning for information disclosure violations. The financial report shows the company achieved operating revenue of 4.883 billion yuan, down 7.58 percent year on year. Net profit attributable to the parent company was 65 million yuan, down 36.57 percent. Non-GAAP net profit was 61 million yuan, down 36.55 percent. Net cash flow from operating activities was 502 million yuan, a sharp year-on-year decline of 68.42 percent, mainly because lower revenue reduced cash inflows from goods sales, while higher coal prices increased cash outflows for procurement. Total assets at the end of the period were 33.018 billion yuan, up 2.71 percent from the end of the previous year. The asset-liability ratio was 86.74 percent, with debt levels remaining high. In terms of business structure, thermal power generation and heating remained the core revenue source, generating 4.282 billion yuan in the reporting period, accounting for 87.71 percent of total revenue, but down 10.20 percent year on year. Gross margin was 9.73 percent, down 2.21 percentage points from the same period last year. In the new energy segment, wind power revenue was 121 million yuan, down 8.72 percent year on year, with gross margin of 31.90 percent, down 10.78 percentage points. Photovoltaic power revenue was 45 million yuan, down 28.41 percent. Coal sales and transportation revenue was 324 million yuan, up 70.53 percent year on year, with its share rising to 6.64 percent, making it one of the few segments with positive growth. The decline in performance was mainly due to shrinking thermal power revenue, rising coal prices compressing gross profit, and falling revenue from wind and solar businesses. The company holds a stake in Xiantian Computing Power and is advancing data center construction, but this has not yet provided substantial support to the main business. Looking ahead, electricity market reforms and the entry of new energy into the market may intensify electricity price volatility. High coal prices will test cost control. The company is advancing pumped storage and multi-energy complementary projects, but short-term capital expenditure pressure is relatively high.
Henan Yuneng Holdings Co LtdHigh coal costs increased procurement outflows, dragging down revenue and profit.
