Power Development announces full-year 2025 performance results

Focus on deepening resource deployment, advancing domestic and overseas expansion, and continuing to reward shareholders

Summary of Power Development Group Limited's full-year 2025 performance results:

- Total revenue amounted to RMB 5,293.3 million (RMB, hereinafter the same);

- Gross profit was approximately RMB 2,030.3 million, with a gross margin of 38.4%;

- Net profit reached RMB 889.4 million, with a net margin of 16.8%;

- Coal core business: revenue was approximately RMB 4,514.1 million, pre-tax profit was approximately RMB 1,747.3 million;

- Basic earnings per share were 10.66 cents, diluted earnings per share were 10.57 cents;

- Final dividend of 6.0 Hong Kong cents per share

(Hong Kong, March 24, 2026) China's leading and efficient integrated coal enterprise, Power Development Group Limited ('Power Development' or 'the Company', together with its subsidiaries, collectively referred to as 'the Group'; stock code: 1277.HK), announced its financial results for the 12 months ended December 31, 2025 ('the reporting period').

In 2025, the domestic coal market faced industry challenges of oversupply, with the overall price level declining, highlighting operational pressures. Against this backdrop, the Group adhered to its core business, actively promoted resource layouts both domestically and internationally, while expanding into diversified business areas, demonstrating strong operational resilience. Key highlights from the reporting period include total revenue of approximately RMB 5,293.3 million; gross profit of approximately RMB 2,030.3 million, with a gross margin of 38.4%; net profit of approximately RMB 889.4 million, with a net profit margin of 16.8%; coal core business: revenue of approximately RMB 4,514.1 million, pre-tax profit of approximately RMB 1,747.3 million; basic earnings per share of 10.66 cents, diluted earnings per share of 10.57 cents; interim dividend for 2025 of 5.0 Hong Kong cents per share, final dividend for 2025 of 6.0 Hong Kong cents per share.

During the reporting period, the supply and demand dynamics in the domestic coal market were relaxed, with production of raw coal by large-scale industrial enterprises increasing by 1.1% year-on-year, while downstream industries such as thermal power and steel showed weak demand, pressuring coal prices. In response to the complex market environment, the Group employed flexible operational strategies to mitigate the impact of industry fluctuations: its core thermal coal product, 'Power 2,' continued to consolidate its brand advantage, gaining wide market recognition for its low sulfur content and high ash melting point, with sales volume of 5,000 kcal low-sulfur eco-friendly thermal coal increasing slightly by 0.7% over the previous year; at the same time, the Group actively implemented a bidding sales model, with the average selling price of 5,000 kcal thermal coal at about RMB 602.8 per ton, effectively cushioning the impact of price declines on performance.

In terms of cost control, the Group continued to deepen its fine-grained operations, embedding cost management throughout production and transportation processes. The Dafanpu Coal Mine in Inner Mongolia, as the Group's core asset, retained its 'National Green Mine' status, with key profitability indicators remaining among the top in the industry, showcasing steady operations across cycles. During the reporting period, the Group's selling expenses decreased by 21.9% year-on-year, financing costs decreased by 8.1% year-on-year, further solidifying its operational foundation through optimized expense structures.

In terms of business layout, the Group's dual-driven strategy of 'domestic + overseas' continued to advance. Domestically, all systems at the Yong'an Coal Mine in Ningxia operated smoothly, generating trial operation revenue of RMB 17.837 million in 2025, with official production expected to commence in the second half of 2026, reaching full capacity of 1.2 million tons per year by 2027; a supporting coking coal washing plant with an annual processing capacity of 2.4 million tons will ensure product quality improvement and efficiency gains. Construction of the Wei Yi Coal Mine is proceeding as planned, with joint trial operations set to begin in the second half of 2026 and full capacity of 900,000 tons per year expected by 2028, marking the Group's transition from single thermal coal operations to full coal type production.

Overseas expansion achieved significant progress, with the Group steadily advancing the staged acquisition of a 51% stake in MC Mining Limited ('MC Mining'), holding 47.42% of its shares as of the announcement date. The Makado Coal Project in South Africa, under MC Mining, has resources of approximately 706 million tons, covering hard coking coal and thermal coal types. Mining engineering and coal washing plant construction commenced fully in November 2024, with official production anticipated in the first half of 2026, becoming a crucial engine for future performance growth. Additionally, the Group is collaborating with Minenet Company Limited on the Sierra Leone rutile mining project, with the first phase of three production lines expected to commence operations in the second half of 2026, with an annual capacity of approximately 280,000 tons, further expanding the Group’s overseas resource portfolio.

The coordinated development of diversified businesses has begun to show results. During the reporting period, the Group completed the 100% equity acquisition of Seedlife, with property management services covering 32 cities nationwide, managing nearly ten million square meters. Real estate projects such as Taiyuan Power Yingtong Plaza and Maoming Power Taoyuan have started generating contract signings and deliveries, supplementing performance. Agriculture and livestock, cigar tobacco, and other businesses are being cultivated continuously, forming a diversified development pattern of 'core business + potential businesses'.

The Group successfully established an ecological industrial chain integrating agricultural product cultivation and livestock breeding by combining green mine development, land reclamation, and modern agriculture. It consistently prioritizes safety production and green development, reinforcing safety defenses through regular safety hazard inspections and systematic employee training. The Dafanpu Coal Mine continuously holds the 'National Green Mine' title and was awarded 'Advanced Enterprise in Green Mine Construction in Erdos City,' fully demonstrating comprehensive sustainable development capabilities.

Looking ahead to 2026, as domestic coal industry policies deepen with measures against internal competition, overproduction, and strengthening safety supervision, market supply and demand are expected to rebalance, potentially leading to a gradual recovery in coal price levels. The Group will continue to uphold the development philosophy of prioritizing 'safety, efficiency, and environmental protection,' accelerating the commissioning of the dual coal mines in Ningxia and the Makado project in South Africa, deepening the operation of the coal industry value chain, while steadily nurturing diversified businesses and continuously optimizing business structure and profit quality. Moving forward, the Group will adhere to high-quality development principles, leveraging premium resource reserves as a foundation and global layout as support, to create long-term stable value for shareholders.

About Power Development Group Limited

Power Development Group Limited was incorporated in the Cayman Islands in July 2010 and listed on the Main Board of the Hong Kong Stock Exchange in March 2012 (Stock Code:1277.HK), an integrated energy company with operations spanning coal production, washing, loading, transportation, and trading. The group's core assets include the Dafanpu Coal Mine in Inner Mongolia, the Yong'an Coal Mine in Ningxia, and the Wei Yi Coal Mine. It has also secured high-quality coal resources in South Africa through the subscription of MC Mining shares, while expanding into diversified businesses such as property management, real estate, agriculture, and animal husbandry. The group is committed to becoming a leading private integrated resources supplier in China.

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