Guanghui Energy Co., Ltd. posted a sharp recovery in first-half earnings, driven by a broad upturn in China's energy and chemical markets.

The company expects net profit attributable to shareholders of 1.17-1.32 billion yuan in January-June, up 37.1%-54.7% from a year earlier. Excluding non-recurring items, net profit is expected to be 1.23-1.38 billion yuan, up 47.5%-65.5%, underscoring the resilience of its core business.

Guanghui attributed the rebound to stringent cost controls, stable plant operations, and a sustained improvement in energy and chemical product prices from the second quarter onward.

Since the start of the second quarter, China's energy and chemical sector has seen a broad recovery, with coal, coal chemicals and purchased LNG all gaining momentum. By early May, domestic prices for coal, methanol, coal tar and LNG had risen 7.8%, 39.2%, 2.4% and 35.8%, respectively, from the first quarter, according to broker research.

The coal-chemical chain continued to strengthen. By June 12, methanol prices in east China had climbed to 3,460 yuan/t, up 240 yuan/t week on week, while prevailing ethylene glycol prices rose to 4,762 yuan/t, up 168 yuan/t from a week earlier.

Guanghui's purchased LNG segment is gradually unlocking profit gains from low-cost inventory locked in earlier, while its coal business has benefited from higher average selling prices in the second quarter. The company's Hami coal mines, with short transport distances to ports, allow efficient pass-through of price gains.

The company's 15 million tonnes per annum (Mtpa) coal grading and utilization demonstration project has secured land approval, with basic design 95% complete. A 2.5 billion yuan upgrade project for high-value utilization of tar-rich coal has received all approvals and will boost product capacity by over 40% once operational.

On infrastructure, the 40 Mtpa Naoliu highway expansion project is fully operational, further reducing coal logistics costs and strengthening the company's low-cost competitive moat.

Industry-wide, peak summer demand in 2026, combined with tighter safety inspections and higher import coal prices, is tightening supply and improving the coal market balance. Data showed China's average import coal price reached $86/t in May, up 20.1% year on year, with coal and coal-chemical prices holding near two-year highs.

Guanghui said it is shifting from a scale-driven to a quality-driven strategy, deepening its coal, oil, gas and chemical integration, and accelerating key project commissioning to deliver long-term value for investors.