Shougang Resources (00639) Announces Interim Results Profit attributable to shareholders of HK$589 million, up 46% year over year

According to the Zhitong Finance App, Shougang Resources (00639) announced interim results for the six months ended June 30, 2026, with revenue of HK$3.243 billion, up 54% year on year; profit attributable to company owners was HK$589 million, up 46% year on year; basic profit per share was HK11.56 cents. It is proposed to pay an interim dividend of HK10 cents per common share.

The announcement said that during the review period, mining of the three mines was successfully combined with Fenrida production, and production increased compared to the plan. For the six months ended June 30, 2026, the Group's original coking coal production was about 2.79 million tons (first half of 2025: about 2.64 million tons), up 6% year on year; fine coking coal production was about 1.95 million tons (first half of 2025: about 1.54 million tons), up 27% year on year. The increase was mainly due to the increase in raw coking coal production with increased washing volume and improved recovery rate of coking coal. The increase in the recovery rate was mainly due to the year-on-year increase in the yield of medium sulphur coking coal, which was also positively affected by the reduction in the thickness of the coal seam.

During the review period, as the production of fine coking coal increased, self-produced fine coking coal sales increased 26% year over year.

In the first half of 2026, the coking coal market showed a trend of “low back to high, fluctuating stronger”. Affected by the energy crisis caused by geographical conflicts and coal mine accidents in some major production areas, etc., the focus of coal prices has clearly risen. During the review period, the average market price of the Group's main coking coal products increased 20% year on year. The average sales price (including VAT) of the Group's own refined coking coal rose 16% year over year to RMB 1,237 per ton (first half of 2025: RMB 1,067 per ton). The gap with the increase in the market was mainly due to differences in the coal type structure.

Starting in March 2025, the Group began coal trading business to broaden revenue and profit sources. Furthermore, from March 2026, the Group's trading business expanded to materials and equipment. During the review period, trade business sales accounted for 23% of the Group's operating revenue (first half of 2025:24%), of which the coal trade business accounted for 98% of trade business sales (first half of 2025:100%).

For the six months ended June 30, 2026, the Group achieved operating income of approximately HK$3.243 billion, a significant increase of approximately HK$1,142 million or 54% over the same period last year of approximately HK$2.01 billion. The sharp increase in operating income was due to a 16% year-on-year increase in the average realized sales price of self-produced fine coking coal, a 26% year-on-year increase in sales of self-produced fine coking coal, and an increase in operating income from the trading business during the review period.