Shougang Resource (00639) has announced its interim results for the six months ended June 30, 2026, reporting revenue of HK$3.243 billion, a year-on-year increase of 54%. Profit attributable to shareholders of the company reached HK$589 million, up 46% from the same period last year, with basic earnings per share standing at 11.56 HK cents. The board has proposed an interim dividend of 10 HK cents per ordinary share.

According to the announcement, the smooth operation of the three mines and successful efforts to reach full production capacity led to output exceeding planned targets during the review period. For the six months ended June 30, 2026, the group's raw coking coal production was approximately 2.79 million tonnes (compared to 2.64 million tonnes in the first half of 2025), an increase of 6% year-on-year. Clean coking coal output reached approximately 1.95 million tonnes (versus 1.54 million tonnes in the first half of 2025), up 27% year-on-year. This increase was driven by higher raw coal volumes entering the washing process and an improved clean coal recovery rate, which was positively influenced by a higher proportion of medium-sulfur raw coal output and a reduction in interbedded rock thickness within the seams.

During the review period, sales of self-produced clean coking coal grew by 26% year-on-year, in line with the rise in production volumes. The coking coal market in the first half of 2026 displayed a trend of starting weak before strengthening, with prices experiencing notable upward momentum. Energy crises triggered by geopolitical conflicts, along with accidents at some key mining regions, pushed coal price benchmarks significantly higher.

The group's average market price for major clean coking coal products rose 20% year-on-year during the period. The average realized selling price (including VAT) for self-produced clean coking coal increased 16% year-on-year to RMB 1,237 per tonne (compared to RMB 1,067 per tonne in the first half of 2025). The gap between the realized price increase and the market uptrend is primarily attributable to differences in coal type composition.

Since March 2025, the group has expanded into coal trading operations to diversify its revenue and profit streams. Additionally, starting in March 2026, trading activities were extended to cover materials and equipment. During the review period, trading business sales accounted for 23% of the group's total operating revenue (compared to 24% in the first half of 2025), with coal trading representing 98% of trading sales (versus 100% in the prior-year period).

For the six months ended June 30, 2026, the group generated operating revenue of approximately HK$3.243 billion, a substantial increase of around HK$1.142 billion, or 54%, compared to approximately HK$2.101 billion in the corresponding period last year. This significant revenue growth was driven by a 16% year-on-year increase in the average realized selling price of self-produced clean coking coal, a 26% rise in sales volumes of self-produced clean coking coal, and higher revenue contribution from the trading business.