Hidili Industry International Development Limited reported unaudited interim results for the six months ended 30 June 2026 showing a mixed performance.

Revenue and Profitability • Revenue slipped 13.5% year on year to RMB 872.01 million, reflecting a 26.9% drop in clean-coal sales volume to 619,000 tonnes despite a 17.0% rise in average selling price to RMB 1,305 per tonne. • Gross profit fell 37.6% to RMB 58.71 million; gross margin contracted to 6.7% from 9.3% a year earlier. • Loss before tax narrowed 29.5% to RMB 174.94 million, while the net loss attributable to shareholders decreased 32.3% to RMB 166.51 million. • EBITDA surged 84.0% to RMB 117.14 million, lifting the EBITDA margin to 13.4% (H1 2025: 6.3%).

Cost Dynamics • Cost of sales declined 11.1% to RMB 813.30 million, aided by lower staff costs (-22.2% to RMB 252.0 million) and reduced depreciation and amortisation (-14.4% to RMB 108.4 million). • Average raw-coal production cost dropped 8.0% to RMB 264 per tonne, supported by mechanisation and tighter cost control. • Clean-coal unit cost, however, increased 28.6% to RMB 1,245 per tonne due to higher raw-coal consumption in washing.

Operating Expenses and Other Items • Distribution expenses decreased 45.5% to RMB 50.11 million, tracking lower shipment volumes. • Administrative expenses fell 9.2% to RMB 108.19 million. • Other gains rose to RMB 65.54 million, largely from a RMB 59.18 million net foreign-exchange gain. • Finance costs edged down 3.6% to RMB 150.93 million. • An income-tax credit of RMB 8.92 million contrasted with a RMB 0.40 million tax expense in the prior period.

Balance Sheet and Liquidity • Net current liabilities stood at RMB 8.20 billion (31 Dec 2025: RMB 8.14 billion). • Cash and bank balances declined to RMB 8.44 million from RMB 43.07 million six months earlier. • Short-term bank and other borrowings totalled RMB 5.57 billion, with interest rates between 2.06% and 4.275%. • The gearing ratio remained broadly stable at 62.1% (31 Dec 2025: 62.0%). • The auditor highlighted material uncertainties over going-concern status, citing net losses and significant current-liability pressure.

Operational Update • Raw-coal output fell 12.1% to 2.31 million tonnes, with Sichuan production down 48.6% amid consolidation to core mines and Guizhou output lower by 10.0%. • Clean-coal production declined 34.2% to 541,000 tonnes. • Capital commitments for property, plant and equipment totalled RMB 394.76 million at period-end.

Debt Restructuring Progress • The company is negotiating with a PRC financial institution and remaining lenders to roll over loans and seek interest waivers after major banks disposed of claims in 2024. • The Share Placement Programme ended on 31 March 2026 without share sales; Hidili is discussing buyback terms with participating creditors.

Outlook Management plans to leverage rising clean-coal prices, continue cost-reduction measures and pursue asset disposals while advancing onshore and offshore debt-restructuring talks to stabilise liquidity and profitability.