China's Qin Fa (00866) Fa Yingxi estimates that profit after tax in the medium term will not be more than 290 million yuan

According to the Zhitong Finance App, China's Qin Fa (00866) announced that the Group expects to record profit after tax not more than RMB 290 million for the six months ending June 30, 2026 (this period), and record profit after tax of RMB 31 million from continuing operations for the six months ending June 30, 2025.

The increase in the Group's profit after tax was mainly due to the following factors: (i) the increase in average coal sales price during the period compared to the same period in 2025; (ii) the increase in raw coal production from continuing operations from 2.05 million tons in the six months ended June 30, 2025 to 4.14 million tons during the period; (iv) the increase in coal washing and processing production from continuing operations increased from 1.24 million tons for the six months ending June 30, 2025 to 2.14 million tons during the period; (iv) the decrease in foreign exchange losses during the period compared to the same period in 2025. The currency depreciation of the Indonesian rupiah against RMB and the US dollar led to an exchange loss of approximately RMB 55 million (2025: RMB 71 million) due to the settlement of monetary items and conversion of monetary items; and (v) recorded estimated income from changes in liabilities of approximately RMB 165 million during this period.