E-COMMODITIES (01733) has issued a profit alert, announcing that the group expects a net profit exceeding HK$240 million for the six months ending June 30, 2026, representing a year-on-year increase of over 80% compared to the same period in 2025.
The performance growth is primarily attributed to the year-on-year uptick in coking coal market prices, which has driven a recovery in the gross profit margin of the company's coal trading business, leading to a steady improvement in overall profitability. At the industry level, the first half of 2026 saw the Chinese coking coal market undergo a broad, volatile upward trend, initially declining and then surging, with a staged upward movement. The market price center moved higher year-on-year, and industry sentiment improved compared to the same period in 2025.
First, during the first half of the year, production capacity in China's main coking coal-producing regions tightened to some extent due to disruptions from climate factors and local safety accidents. As a result, domestic coking coal supply declined compared to the same period last year. Second, import resources seized the market window to provide effective supplementation, with coking coal import volumes in the first half showing a significant increase year-on-year. Data shows that total national coking coal imports in the first half of the year reached 66.88 million tons, a year-on-year increase of about 26%. Among this, Mongolian coal imports reached 40.58 million tons, a year-on-year increase of approximately 64%. Third, against this backdrop, coking coal prices in the first half of the year experienced a broad-based increase compared to the same period last year, with the scarcity of premium hard coking coal being particularly pronounced. The average spot price of domestic premium hard coking coal in the first half of the year rose nearly 25% year-on-year, highlighting the scarcity of high-quality, low-sulfur resources. The market supply-demand pattern improved, and the industry's operations trended toward healthier development.
Based on the improved supply-demand fundamentals in the coking coal industry during the first half of the year, the company has leveraged its forward-looking strategic resource allocation and refined risk management capabilities. It has strengthened efficient collaboration across all business segments, driving a year-on-year increase in business volume for its supply chain comprehensive services segment, thereby solidifying its operational foundation. The company has also actively seized industry opportunities. On one hand, the company's diversified resource allocation has effectively mitigated supply disruptions and hedged against operational uncertainties arising from fluctuations in import patterns, ensuring stable supply and operations for its coal trading business. On the other hand, the company has continuously improved its market-based risk management system, reasonably utilizing futures and derivatives instruments to hedge against the risk of broad price fluctuations in commodities, effectively smoothing out periodic fluctuations in operational profits.
In summary, the group achieved steady growth in its operating performance for the six-month period ending June 30, 2026.
Comments