Kinetic Development Group Limited (Kinetic Development) reported solid interim results for the six months ended 30 June 2026, buoyed by resilient coal prices and disciplined cost controls.
Revenue edged up 0.40% year on year to RMB 2.52 billion, with coal operations contributing RMB 2.23 billion, or 88.4% of the total. Gross profit climbed 12.60% to RMB 1.32 billion, lifting the gross margin to 52.6% from 46.9% a year earlier. Net profit surged 35.60% to RMB 756.70 million, driving the net margin to 30.0%.
Segment performance was mixed. The core coal and mining division recorded a 29.40% rise in pre-tax profit to RMB 1.20 billion, offsetting a RMB 37.30 million pre-tax loss from ancillary businesses, which include real estate, property management, agriculture & animal husbandry, and cigar & tobacco. Real-estate and property-management revenue rose 79.30% to RMB 253.30 million, reflecting more project deliveries, while other ancillary revenue increased 5.90% to RMB 40.10 million.
During the period, Kinetic Development completed the US$90 million acquisition of a 51% stake in Australia-listed MC Mining Ltd., consolidating four South African coal projects with combined resources of 8.30 billion tonnes. The flagship Makhado open-pit mine began production in August 2026, targeting 0.28 million tonnes of coking coal and 0.23 million tonnes of thermal coal this year. In Sierra Leone, a rutile joint venture with Minenet is scheduled to start production by October 2026, with first-phase capacity of 220,000 tonnes of heavy mineral products.
Capital expenditure reached RMB 480.90 million in 1H26, focused on the Dafanpu, Yong’an and Weiyi mines in China, the Makhado project, and the Sierra Leone rutile development. Committed capex stood at RMB 656.70 million. Net debt rose to RMB 996.16 million, taking the gearing ratio to 9.0%. Bank loans and other borrowings totalled RMB 1.45 billion, of which RMB 0.54 billion are due within 12 months.
To bolster liquidity, Kinetic Development placed 169.51 million new shares in June 2026 at HKD 1.85 each, raising net proceeds of HKD 309.30 million (RMB 269.20 million). The funds are earmarked for South African mine procurement, MC Mining working capital, Sierra Leone rutile project spending, and general corporate purposes.
The Board declared an interim dividend of HKD 6.0 cents per share (1H25: HKD 5.0 cents), totalling approximately HKD 515.97 million (RMB 448.15 million), payable in three instalments from October to December 2026.
Kinetic Development projects a continued tight domestic coal supply-demand balance in 2H26 amid stricter safety regulations and robust power-sector consumption, supporting coal prices. Management plans to advance construction at its Ningxia mines, scale up the Makhado operation, and commence production at the Sierra Leone rutile project while maintaining a safety-first, cost-efficient, and environmentally focused strategy.
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