Kinetic Development's profit drops 48.6% as coal revenue falls

Kinetic Development Group Limited reported a consolidated profit after tax of RMB558.1 million for the six months ended 30 June 2025, a 48.6% decrease from RMB1,085.2 million in the prior period. Revenue slightly decreased by 0.9% to RMB2,509.5 million, primarily due to a 7.1% year-on-year decline in coal business revenue to RMB2,330.3 million, attributed to falling coal prices. Gross profit margin dropped to 46.9% from 61.4% in the previous year.

The Group's cost of sales increased by 36.4% to RMB1,333.4 million, mainly due to higher operating costs at the Yong'an coal mine. Despite the downturn in the coal market, revenue from other segments, including real estate development and property management, saw a significant increase of 639.2% to RMB179.2 million. The Group declared an interim dividend of HK$5.0 cents per share, up from HK$4.0 cents per share last year, totaling HK$421,500,000.

Strategic expansions included a 51% new share subscription in MC Mining Limited, focusing on the Makhado coal project in South Africa, and acquisitions in real estate and property management services in China. The Company maintains a net profit margin of 22.2%, remaining at a relatively high level within the industry.