Financial Performance - Sales revenue for the first half of 2020 reached CNY 35,324.83 million, a 6.28% increase compared to CNY 33,237.43 million in the same period of 2019[17]. - Gross profit decreased by 34.85% to CNY 7,776.40 million from CNY 11,936.17 million year-on-year[17]. - Net profit attributable to shareholders was CNY 4,548.66 million, down 21.71% from CNY 5,809.98 million in the previous year[17]. - Total assets as of June 30, 2020, amounted to CNY 219,702.96 million, an increase from CNY 204,696.13 million at the end of 2019[18]. - Current liabilities rose to CNY 78,686.93 million from CNY 65,984.27 million year-on-year[18]. - Cash generated from operating activities was CNY 5,884.73 million, a decrease of 29.77% compared to CNY 8,378.92 million in the first half of 2019[19]. Coal Production and Sales - In the first half of 2020, the company produced 50,108 thousand tons of commercial coal, an increase of 3,116 thousand tons or 6.63% year-on-year[26]. - The company sold 67,620 thousand tons of commercial coal, representing a year-on-year increase of 12,333 thousand tons or 22.31%[26]. - The total coal sales volume for the first half of 2020 reached 67,620 thousand tons, with sales revenue of 33,498 million RMB, representing an increase from 55,288 thousand tons and 31,220 million RMB in the same period of 2019, respectively[34]. - The coal sales cost for the first half of 2020 was 24,528 million RMB, an increase of 6,395 million RMB or 35.3% year-on-year, primarily due to increased coal sales volume[36]. - The average coal sales cost per ton decreased to 265.94 RMB in 2020 from 276.66 RMB in 2019, reflecting a reduction of 3.87%[37]. Subsidiaries and Investments - The company operates several subsidiaries, including Yulin Energy Chemical Co., which is responsible for methanol project operations in Shaanxi Province[5]. - The company holds 95.14% of Shandong Huaju Energy Co., which is involved in power generation and heating from coal gangue and coal slurry[5]. - The company has significant overseas assets valued at CNY 73,422 million, accounting for 33.6% of total assets[24]. - The group acquired a 10% stake in the Moraben coal joint venture from Shuangri Moraben Resources, enhancing its investment portfolio[58]. Legal and Regulatory Matters - The company is involved in an arbitration case with Xinjiang Coal Industry, claiming RMB 749 million for equity transfer and RMB 656 million in penalties, totaling approximately RMB 1.435 billion[92]. - The company is participating as a third party in a contract dispute involving China Huarong Asset Management, with claims for repayment of RMB 451 million and RMB 680 million from Jincheng Tai Chemical[93]. - The company is involved in a legal dispute with Shandong Hengfeng Electric, claiming a loan repayment of RMB 99.119 million and corresponding interest due to a financial loan contract dispute[96]. - The company has reported a potential liability of RMB 59.669 million in a dispute with China Construction Bank over a loan repayment[97]. - The company is facing a legal challenge from Rizhao City Intermediate People's Court regarding a claim for RMB 79.1312 million related to a coal sales contract[99]. Corporate Governance and Shareholder Matters - The controlling shareholder, Yanzhou Coal Group, holds 56.01% of the company's shares as of the report date[5]. - The company has established a robust corporate governance structure, ensuring compliance with legal and regulatory requirements[187]. - The company has adhered to the Corporate Governance Code and Standard Code, with no deviations reported during the period[189]. - The company implemented the 2018 A-share stock option incentive plan, granting a total of 46.32 million stock options to 499 eligible participants, representing approximately 0.94% of the total share capital at the time of disclosure[111][114]. Environmental and Social Responsibility - The company has not experienced any major environmental pollution incidents and has complied with all relevant environmental protection laws and regulations during the reporting period[167]. - The company is actively engaged in ecological restoration and environmental protection initiatives, including soil and water conservation and ecological construction[180]. - The company invested a total of RMB 4.38 million in poverty alleviation efforts during the first half of 2020, with RMB 3.7 million allocated as financial support and RMB 680,000 in material assistance[162]. - The company provided heating coal to impoverished areas, ensuring warmth for local residents during winter, and helped 213 households in Heze City with coal-to-electricity project renovations[162]. Risk Management - The company emphasizes that forward-looking statements regarding future plans do not constitute a substantive commitment to investors[3]. - The group faced safety risks in high-risk industries such as coal mining and power generation, implementing measures to enhance safety management[70]. - The group is exposed to exchange rate risks due to its international operations, employing various financial tools to mitigate these risks[71].

[Important Notice](index=3&type=section&id=Part%20I.%20Important%20Notice) This unaudited Q1 2020 report's truthfulness and completeness are guaranteed by the board and management [General Statements](index=3&type=section&id=1.1-1.7%20General%20Statements) This unaudited Q1 2020 report's truthfulness and completeness are guaranteed by the board, supervisory board, and senior management - The report's content is **true, accurate, and complete**, guaranteed by the board, supervisory board, and senior management, who bear legal responsibility[3](index=3&type=chunk) - All company directors attended the board meeting to review the quarterly report[3](index=3&type=chunk) - Chairman Li Xiyong, CFO Zhao Qingchun, and Head of Financial Management Department Xu Jian guarantee the **truthfulness, accuracy, and completeness** of the financial statements[3](index=3&type=chunk) - This company's Q1 2020 report is **unaudited**[3](index=3&type=chunk) - The reporting period is from **January 1 to March 31, 2020**[3](index=3&type=chunk) [Company Profile](index=4&type=section&id=Part%20II.%20Company%20Profile) This section provides key financial data and shareholder information as of the reporting period end [Key Financial Data](index=4&type=section&id=2.1%20主要财务数据) Total assets increased, but net assets attributable to shareholders, operating cash flow, revenue, and net profit all decreased significantly Key Financial Data for Q1 2020 | Metric | As of Report Period End (Thousand Yuan) | As of Previous Year End (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 216,887,452 | 207,821,363 | 4.36 | | Net Assets Attributable to Listed Company Shareholders | 62,240,931 | 63,291,840 | -1.66 | | | **Year-to-Date as of Report Period End (Thousand Yuan)** | **Year-to-Date as of Previous Year End (Thousand Yuan)** | **Change (%)** | | Net Cash Flow from Operating Activities | 1,336,342 | 4,424,475 | -69.80 | | Operating Revenue | 45,604,524 | 48,243,536 | -5.47 | | Net Profit Attributable to Listed Company Shareholders | 1,527,504 | 2,308,395 | -33.83 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 1,454,167 | 2,229,570 | -34.78 | | Weighted Average Return on Net Assets (%) | 2.37 | 3.70 | Decrease of 1.33 percentage points | | Basic Earnings Per Share (Yuan/share) | 0.3110 | 0.4699 | -33.82 | | Diluted Earnings Per Share (Yuan/share) | 0.3110 | 0.4699 | -33.82 | - Financial statements of Qingdao Duanxin Asset Management Co., Ltd. and Yankuang Smart Ecological Co., Ltd. were **newly consolidated** during the reporting period[4](index=4&type=chunk) Non-Recurring Gains and Losses Items and Amounts | Item | Current Period Amount (Thousand Yuan) | | :--- | :--- | | Government subsidies included in current profit and loss | 23,851 | | Fair value change gains and losses and investment income | 3,371 | | Reversal of impairment provisions for accounts receivable and contract assets | 8,694 | | Other non-operating income and expenses | 78,611 | | Impact on minority shareholders' equity (after tax) | -6,619 | | Income tax impact | -34,571 | | **Total** | **73,337** | [Shareholder Information as of Report Period End](index=5&type=section&id=2.2%20截至报告期末的股东总数、前十名股东、前十名流通股东（或无限售条件股东）持股情况表) The company had 81,301 shareholders, with Yankuang Group as the largest shareholder, holding 46.16% directly and 53.79% directly and indirectly - Total number of shareholders: **81,301**[7](index=7&type=chunk) - Yankuang Group Co., Ltd. is the largest shareholder, holding **2,267,169,423 shares**, accounting for **46.16%**[7](index=7&type=chunk) - Yankuang Group directly and indirectly holds **53.79%** of the company's shares[9](index=9&type=chunk) - Hong Kong Securities Clearing Company Nominees Limited holds **1,948,105,203 shares**, accounting for **39.66%**[7](index=7&type=chunk) Major Shareholders' Interests and/or Short Positions in Shares or Related Shares of the Company | Name of Major Shareholder | Type of Share | Capacity | Number of Shares Held (Shares) | Nature of Interest | Percentage of Company's H-Share Class | Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yankuang Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 2,267,169,423 | Long Position | - | 46.16% | | Yankuang Group ① | H-shares | Interest of Controlled Corporation | 374,989,000 | Long Position | 19.21% | 7.63% | | BNP Paribas Investment Partners SA | H-shares | Investment Manager | 117,641,207 | Long Position | 6.03% | 2.39% | [Significant Events](index=8&type=section&id=Part%20III.%20Significant%20Events) This section details the company's overall operating performance, significant changes in financial statements, and progress on major events [Overall Operating Performance](index=8&type=section&id=3.1%20总体经营业绩) In Q1 2020, the company saw increased coal production and sales, but decreased railway transport volume, with varied performance in chemical and power businesses Key Operating Data for Major Products and Services (Q1 2020 vs Q1 2019) | Item | Q1 2020 | Q1 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Coal Business (Thousand Tons)** | | | | | Commercial Coal Production | 24,215 | 23,192 | 4.41 | | Commercial Coal Sales | 33,245 | 26,441 | 25.73 | | **Railway Transportation Business (Thousand Tons)** | | | | | Cargo Volume | 5,070 | 5,600 | -9.46 | | **Coal Chemical Business (Thousand Tons)** | | | | | Methanol Production | 474 | 457 | 3.69 | | Methanol Sales | 475 | 461 | 3.15 | | **Power Business (Ten Thousand kWh)** | | | | | Power Generation | 70,602 | 68,355 | 3.29 | | Power Sales | 44,023 | 43,250 | 1.79 | [Operating Performance by Main Business Segment](index=8&type=section&id=3.1.2%20主营业务分部经营情况) This section details Q1 2020 operational data, production, sales, prices, and cost changes across coal, railway, coal chemical, power, and other key business segments [Coal Business](index=8&type=section&id=1.煤炭业务) Q1 2020 saw increased coal production and sales, particularly trade coal, but a decrease in average selling price and a significant rise in sales cost - In Q1 2020, the Group produced **24.21 million tons** of commercial coal, an increase of **1.02 million tons** or **4.4%** year-on-year[14](index=14&type=chunk) Q1 2020 Commercial Coal Production (Thousand Tons) | Item | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Company | 8,000 | 7,919 | 1.03 | | Shanxi Neng Hua | 305 | 400 | -23.73 | | Heze Neng Hua | 817 | 605 | 34.88 | | Ordos Neng Hua | 3,120 | 3,600 | -13.33 | | Haosheng Coal Industry | 1,481 | 441 | 235.84 | | Yancoal Australia | 9,149 | 8,818 | 3.75 | | Yancoal International | 1,343 | 1,409 | -4.68 | | **Total** | **24,215** | **23,192** | **4.41** | - In Q1 2020, the Group sold **33.24 million tons** of commercial coal, an increase of **6.80 million tons** or **25.7%** year-on-year, primarily due to a **5.96 million tons** increase in trade coal sales[17](index=17&type=chunk) Q1 2020 Coal Production, Sales, and Selling Prices (Thousand Tons, Yuan/Ton) | Item | Q1 2020 Production | Q1 2020 Sales | Q1 2020 Selling Price | Q1 2019 Production | Q1 2019 Sales | Q1 2019 Selling Price | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Company | 8,000 | 8,003 | 556.65 | 7,919 | 7,872 | 624.69 | | II. Shanxi Neng Hua | 305 | 292 | 306.23 | 400 | 398 | 322.78 | | III. Heze Neng Hua | 817 | 821 | 908.48 | 605 | 468 | 1,138.13 | | IV. Ordos Neng Hua | 3,120 | 2,354 | 242.80 | 3,600 | 3,149 | 270.39 | | V. Haosheng Coal Industry | 1,481 | 1,397 | 297.80 | 441 | 450 | 322.72 | | VI. Yancoal Australia | 9,149 | 8,592 | 468.34 | 8,818 | 8,376 | 647.30 | | VII. Yancoal International | 1,343 | 1,415 | 338.62 | 1,409 | 1,318 | 388.82 | | VIII. Trade Coal | - | 10,369 | 603.37 | - | 4,410 | 734.80 | | **IX. Group Total** | **24,215** | **33,245** | **512.51** | **23,192** | **26,441** | **595.67** | - In Q1 2020, the Group's coal business sales cost was **12.20 billion Yuan**, an increase of **3.44 billion Yuan** or **39.3%** year-on-year[18](index=18&type=chunk) Q1 2020 Coal Sales Cost (Million Yuan, Yuan/Ton) | Item | Total Sales Cost (Million Yuan) | Sales Cost Per Ton (Yuan/Ton) | 2019 Total Sales Cost (Million Yuan) | 2019 Sales Cost Per Ton (Yuan/Ton) | Change in Total Sales Cost (%) | Change in Sales Cost Per Ton (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Company | 2,282 | 284.41 | 2,027 | 255.16 | 12.54 | 11.46 | | Shanxi Neng Hua | 65 | 221.39 | 88 | 219.95 | -26.10 | 0.65 | | Heze Neng Hua | 390 | 435.89 | 259 | 489.30 | 50.83 | -10.92 | | Ordos Neng Hua | 352 | 142.95 | 536 | 170.13 | -34.37 | -15.98 | | Haosheng Coal Industry | 244 | 174.98 | 133 | 296.35 | 83.37 | -40.95 | | Yancoal Australia | 2,527 | 294.06 | 2,406 | 287.25 | 5.01 | 2.37 | | Yancoal International | 361 | 254.94 | 298 | 226.45 | 20.88 | 12.58 | | Trade Coal | 6,081 | 586.46 | 3,138 | 711.42 | 93.81 | -17.57 | [Railway Transportation Business](index=11&type=section&id=2.铁路运输业务) Q1 2020 saw a 9.5% decrease in cargo volume and a 9.4% decrease in revenue, while transportation costs increased by 5.1% - Cargo volume: **5.07 million tons**, a year-on-year decrease of **9.5%**[20](index=20&type=chunk) - Railway transportation business revenue: **98.738 million Yuan**, a year-on-year decrease of **9.4%**[20](index=20&type=chunk) - Railway transportation business cost: **38.925 million Yuan**, a year-on-year increase of **5.1%**[20](index=20&type=chunk) [Coal Chemical Business](index=11&type=section&id=3.煤化工业务) Q1 2020 saw increased methanol production and sales, but a decrease in both sales revenue and sales cost for methanol products Q1 2020 Methanol Production and Sales (Thousand Tons) | Item | Q1 2020 Production | Q1 2019 Production | Change (%) | Q1 2020 Sales | Q1 2019 Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 197 | 189 | 4.26 | 194 | 201 | -3.46 | | Ordos Neng Hua | 277 | 268 | 3.28 | 281 | 260 | 8.26 | Q1 2020 Methanol Sales Revenue and Cost (Thousand Yuan) | Item | Q1 2020 Sales Revenue | Q1 2019 Sales Revenue | Change (%) | Q1 2020 Sales Cost | Q1 2019 Sales Cost | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 274,865 | 343,332 | -19.94 | 213,119 | 269,293 | -20.86 | | Ordos Neng Hua | 394,277 | 436,244 | -9.62 | 239,624 | 285,945 | -16.20 | [Power Business](index=11&type=section&id=4.电力业务) Q1 2020 saw slight increases in power generation and sales, but significant decreases in sales, revenue, and costs for Yulin Energy's power segment Q1 2020 Power Production and Sales (Ten Thousand kWh) | Item | Q1 2020 Power Generation | Q1 2019 Power Generation | Change (%) | Q1 2020 Power Sales | Q1 2019 Power Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 19,785 | 19,612 | 0.88 | 6,215 | 5,868 | 5.91 | | Yulin Neng Hua | 7,694 | 7,638 | 0.73 | 86 | 485 | -82.27 | | Heze Neng Hua | 43,122 | 41,105 | 4.91 | 37,722 | 36,898 | 2.23 | Q1 2020 Power Sales Revenue and Cost (Thousand Yuan) | Item | Q1 2020 Sales Revenue | Q1 2019 Sales Revenue | Change (%) | Q1 2020 Sales Cost | Q1 2019 Sales Cost | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 26,258 | 25,358 | 3.55 | 18,045 | 18,458 | -2.24 | | Yulin Neng Hua | 167 | 912 | -81.69 | 312 | 1,778 | -82.45 | | Heze Neng Hua | 131,538 | 126,650 | 3.86 | 84,011 | 106,024 | -20.76 | - Yulin Energy's power product sales, revenue, and costs significantly decreased, mainly due to a year-on-year **reduction in external power sales**[24](index=24&type=chunk) [Heating Business](index=12&type=section&id=5.热力业务) Q1 2020 saw production of 560,000 steam tons and sales of 200,000 steam tons, generating 20.683 million Yuan in revenue - Heating production: **560,000 steam tons**[25](index=25&type=chunk) - Heating sales: **200,000 steam tons**[25](index=25&type=chunk) - Sales revenue: **20.683 million Yuan**[25](index=25&type=chunk) - Sales cost: **12.539 million Yuan**[25](index=25&type=chunk) [Electromechanical Equipment Manufacturing Business](index=12&type=section&id=6.机电装备制造业务) Q1 2020 generated 2.951 million Yuan in sales revenue with a corresponding sales cost of 2.686 million Yuan - Sales revenue: **2.951 million Yuan**[25](index=25&type=chunk) - Sales cost: **2.686 million Yuan**[25](index=25&type=chunk) [Non-Coal Trading Business](index=12&type=section&id=7.非煤贸易业务) Q1 2020 generated significant sales revenue of 26.325 billion Yuan, with sales costs closely matching at 26.214 billion Yuan - Sales revenue: **26.325 billion Yuan**[26](index=26&type=chunk) - Sales cost: **26.214 billion Yuan**[26](index=26&type=chunk) [Equity Investment Business](index=12&type=section&id=8.权益投资业务) Q1 2020 generated 322 million Yuan in equity investment income - Equity investment income: **322 million Yuan**[26](index=26&type=chunk) [Operating Performance of Yankuang Group Finance Co., Ltd. during the Reporting Period](index=12&type=section&id=3.1.3%20报告期内兖矿集团财务有限公司运营情况) In Q1 2020, Yankuang Group Finance Co., Ltd. saw increased revenue but decreased net profit, with slight growth in net and total assets Operating Performance of Yankuang Group Finance Co., Ltd. (Q1 2020) | Metric | Q1 2020 | Q1 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 125 (Million Yuan) | 118 (Million Yuan) | 5.89 | | Net Profit | 49 (Million Yuan) | 56 (Million Yuan) | -12.65 | | | **As of March 31, 2020** | **As of December 31, 2019** | **Change (%)** | | Net Assets | 3,198 (Million Yuan) | 3,149 (Million Yuan) | 1.54 | | Total Assets | 24,928 (Million Yuan) | 24,694 (Million Yuan) | 0.95 | [Significant Changes and Reasons for Major Financial Statement Items and Indicators](index=12&type=section&id=3.2%20公司主要会计报表项目、财务指标重大变动的情况及原因) This section explains significant changes in balance sheet, income statement, and cash flow items, including accounts receivable, borrowings, and cash flows [Significant Changes and Reasons for Balance Sheet Items](index=12&type=section&id=3.2.1%20资产负债表项目重大变动情况及原因) Accounts receivable, prepayments, short-term borrowings, contract liabilities, other current liabilities, and bonds payable all increased significantly due to various factors Significant Balance Sheet Item Changes (As of March 31, 2020 vs December 31, 2019) | Item | As of March 31, 2020 (Million Yuan) | As of December 31, 2019 (Million Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 8,262 | 4,495 | 83.79 | | Prepayments | 5,725 | 3,484 | 64.30 | | Short-term Borrowings | 12,362 | 8,748 | 41.32 | | Contract Liabilities | 3,565 | 2,717 | 31.20 | | Other Current Liabilities | 4,499 | 2,999 | 50.04 | | Bonds Payable | 19,584 | 14,567 | 34.44 | | Other Comprehensive Income | -9,650 | -6,810 | / | - Increase in accounts receivable is mainly due to increases at the company, Yankuang International, Shandong Zhongyin International Trade Co., Ltd., and Qingdao Zhongyin Ruifeng International Trade Co., Ltd[29](index=29&type=chunk) - Increase in prepayments is mainly due to increases at the company, Yulin Energy, and Smart Logistics[29](index=29&type=chunk) - Increase in short-term borrowings is mainly due to increases at the company, Qingdao Zhongyan, and Yankuang International[30](index=30&type=chunk) - Other current liabilities increased by **1.5 billion Yuan** due to the issuance of the company's first tranche of ultra-short-term financing bonds in 2020[30](index=30&type=chunk) - Bonds payable increased by **5 billion Yuan** due to the issuance of Yanzhou Coal's 2020 corporate bonds (first tranche)[30](index=30&type=chunk) - Decrease in other comprehensive income is mainly due to **exchange rate fluctuations** affecting foreign currency translation differences[30](index=30&type=chunk) [Significant Changes and Reasons for Income Statement Items](index=13&type=section&id=3.2.2%20利润表项目重大变动情况及原因) Q1 2020 saw a significant decrease in financial expenses due to exchange gains, negative net hedge gains from accounting adjustments, and reduced income tax expenses Significant Income Statement Item Changes (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Million Yuan) | Q1 2019 (Million Yuan) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | 259 | 811 | -68.06 | Exchange rate fluctuations led to a year-on-year increase in exchange gains | | Net Hedge Gains/Losses | -285 | - | / | Yancoal Australia's accounting method reclassified hedging gains/losses from operating revenue to net hedge gains/losses | | Income Tax Expenses | 624 | 898 | -30.51 | The Group's taxable income decreased year-on-year | [Changes and Reasons for Cash Flow Statement Items](index=13&type=section&id=3.2.3%20现金流量表项目变动情况及原因) Q1 2020 saw a significant decrease in net cash flow from operating activities, while net cash flow from financing activities turned positive due to increased borrowings Cash Flow Statement Item Changes (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Million Yuan) | Q1 2019 (Million Yuan) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,336 | 4,424 | -69.80 | ① Cash received from sales of goods and provision of services decreased by 7.362 billion Yuan year-on-year; ② Cash paid for purchases of goods and acceptance of services decreased by 6.023 billion Yuan year-on-year; ③ Cash paid for other operating activities increased by 1.762 billion Yuan year-on-year | | Net Cash Flow from Investing Activities | -2,217 | -2,711 | -18.21 | ① Cash received from disposal of investments decreased by 0.857 billion Yuan year-on-year; ② Cash paid for acquisition of fixed assets, intangible assets, and other long-term assets decreased by 1.118 billion Yuan year-on-year | | Net Cash Flow from Financing Activities | 5,861 | -8,157 | / | ① Cash received from borrowings increased by 8.441 billion Yuan year-on-year; ② Cash paid for repayment of debts decreased by 5.891 billion Yuan year-on-year | | Net Increase in Cash and Cash Equivalents | 4,868 | -6,660 | / | - | [Analysis of Progress, Impact, and Solutions for Significant Events](index=14&type=section&id=3.3%20重要事项进展情况及其影响和解决方案的分析说明) This section covers the progress of four litigation cases, three major related party transactions, and other significant matters including personnel changes and subsidiary deregistration [Litigation and Arbitration Status](index=14&type=section&id=3.3.1%20诉讼、仲裁情况) The company is involved in four lawsuits; one was won on appeal, two are in second or first instance, and one first-instance ruling found the company not liable [Weihai City Commercial Bank Co., Ltd. vs. Yanzhou Coal Financial Loan Contract Dispute Case](index=14&type=section&id=1.%20威海市商业银行股份有限公司（%22威商银行%22）诉兖州煤业金融借款合同纠纷案) This financial loan dispute involves 99.119 million Yuan, with the case currently in its second instance after a retrial ruled in favor of the company - Case amount: Hengfeng Company's loan of **99.119 million Yuan** plus interest, with Weihai Commercial Bank demanding Yanzhou Coal fulfill payment obligations within the scope of pledged accounts receivable[34](index=34&type=chunk) - Litigation progress: Company lost in first instance, second instance remanded for retrial. Retrial first instance ruled against Weihai Commercial Bank's claims, and Weihai Commercial Bank appealed again[34](index=34&type=chunk) - Current status: Currently in second instance proceedings, the impact on the company's future profits cannot yet be determined[35](index=35&type=chunk) [China Construction Bank Jining Guhuai Road Branch vs. Yanzhou Coal Financial Loan Contract Dispute Case](index=15&type=section&id=2.中国建设银行济宁古槐路支行（%22建设银行古槐路支行%22）%20诉兖州煤业金融借款合同纠纷案) This financial loan dispute involves 95.8596 million Yuan, with a retrial ruling in favor of the company, which is currently within the appeal period - Case amount: Jining Liaoyuan's loan principal of **95.8596 million Yuan** plus interest, with CCB Guhuai Road Branch demanding the company fulfill payment obligations within the scope of accounts receivable[36](index=36&type=chunk) - Litigation progress: Company lost in first instance, second instance remanded for retrial. Retrial judgment dismissed the plaintiff's claims against the company, absolving the company of liability[36](index=36&type=chunk) - Current status: Currently within the appeal period, the impact on the company's future profits cannot yet be determined[36](index=36&type=chunk) [Shandong Zikuang Coal Marketing Co., Ltd. vs. Yanzhou Coal Sales Contract Dispute Case](index=15&type=section&id=3.%20山东淄矿煤炭运销有限公司（%22淄矿运销公司%22）诉兖州煤业买卖合同纠纷案) This sales contract dispute, involving 33.956 million Yuan, has concluded with the company winning both the first and second instances - Case amount: Demand for return of prepaid coal purchase funds of **25.478 million Yuan**, interest loss of **7.042 million Yuan**, loss of anticipated profits of **0.936 million Yuan**, and debt realization expenses of **0.5 million Yuan**, totaling **33.956 million Yuan**[37](index=37&type=chunk) - Litigation progress: Company won in first instance, second instance upheld the original judgment, company won[37](index=37&type=chunk) - Conclusion: This case has concluded and will not have an adverse impact on the company's future profits[38](index=38&type=chunk) [Xiamen Xinda Co., Ltd. vs. Yanzhou Coal Sales Contract Dispute Case](index=16&type=section&id=4.%20厦门信达股份有限公司（%22厦门信达%22）诉兖州煤业买卖合同纠纷案) This sales contract dispute involves 233 million Yuan, with the company currently undergoing first-instance proceedings, and the impact on future profits is uncertain - Case amount: Demand for Zhongyin Logistics to return principal and interest of **233 million Yuan**, with the company requested to bear joint liability[39](index=39&type=chunk) - Current status: Currently undergoing first instance proceedings, the impact of this litigation on the company's future profits cannot yet be determined[39](index=39&type=chunk) [Significant Related Party Transactions](index=16&type=section&id=3.3.2%20重大关联交易事项) The reporting period included three major related party transactions: property leasing, acquisition of a 10% interest in the Moolarben Coal Joint Venture, and sale of non-coal trading companies [Continuing Connected Transaction for Property Leasing](index=16&type=section&id=1.房屋租赁持续性关联/关连交易) Shanghai Dongjiang Real Estate Development Co., Ltd. signed a lease agreement with Shanghai Yankuang Xinda Hotel Co., Ltd. - Transaction content: The company's wholly-owned subsidiary, Shanghai Dongjiang Real Estate Development Co., Ltd., signed the 'Shanghai Dongjiang Mingzhu Plaza Lease Agreement' with Shanghai Yankuang Xinda Hotel Co., Ltd., a subsidiary of Yankuang Group[40](index=40&type=chunk) [Acquisition of 10% Interest in Moolarben Coal Joint Venture Connected Transaction](index=16&type=section&id=2.%20收购莫拉本煤炭合营企业10%权益关联/关连交易) Yancoal Australia acquired a 10% interest in the Moolarben Coal Joint Venture from Sojitz Moolarben Resources for 300 million Australian Dollars - Transaction content: Yancoal Australia, through Moolarben Company, acquired a **10% interest** in the Moolarben Coal Joint Venture from Sojitz Moolarben Resources for a transaction price of **300 million Australian Dollars**[41](index=41&type=chunk)[42](index=42&type=chunk) - Progress: As of the report disclosure date, the **equity transfer has been completed**[42](index=42&type=chunk) [Disposal of 100% Equity in Non-Coal Trading Companies Connected Transaction](index=17&type=section&id=3.%20出售非煤贸易公司100%股权关联/关连交易) Yankuang International sold its wholly-owned subsidiaries, Yankuang International Trade Co., Ltd. and Yankuang International (Singapore) Co., Ltd., for 150.6712 million Yuan - Transaction content: Yankuang International sold **100% equity** in its wholly-owned subsidiaries, Yankuang International Trade Co., Ltd. and Yankuang International (Singapore) Co., Ltd., to Dianlv Hong Kong Company for a transaction price of **150.6712 million Yuan**[43](index=43&type=chunk) [Other Significant Matters](index=17&type=section&id=3.3.3%20其他重要事项) This section covers the deregistration of Xinyinlian Co., Ltd., board and supervisory board re-elections, and appointments of new senior management [Deregistration of Xinyinlian Co., Ltd.](index=17&type=section&id=1.注销新垠联有限公司) The company's controlling subsidiary, Xinyinlian Co., Ltd., has completed its liquidation and deregistration process - Progress: The company's controlling subsidiary, Xinyinlian Co., Ltd., has **completed its liquidation and deregistration process**[44](index=44&type=chunk) [Board of Directors and Supervisory Board Re-election](index=17&type=section&id=2.董事会、监事会换届) The company has nominated candidates for the board of directors and supervisory board, pending approval at the general meeting of shareholders - Board of Directors candidates: Li Xiyong, Li Wei, Wu Xiangqian, Liu Jian, Zhao Qingchun, and He Jing nominated as **non-independent director candidates**; Tian Hui, Cai Chang, Pan Zhaoguo, and Zhu Limin nominated as **independent director candidates**[45](index=45&type=chunk) - Supervisory Board candidates: Gu Shisheng, Zhou Hong, Li Shipeng, and Qin Yanpo nominated as **non-employee representative supervisor candidates**[46](index=46&type=chunk) - Progress: The aforementioned re-election matters for the Board of Directors and Supervisory Board are **subject to approval** at the company's general meeting of shareholders[46](index=46&type=chunk) [Appointment of Company Investment Director](index=18&type=section&id=3.聘任公司投资总监) Mr. Zhang Lei has been appointed as the company's Investment Director, with a term consistent with other senior management - Personnel change: The company appointed Mr. Zhang Lei as **Investment Director**, with a term consistent with other senior management appointed by the company's seventh Board of Directors[47](index=47&type=chunk) [Appointment of Company General Manager](index=18&type=section&id=4.聘任公司总经理) Mr. Liu Jian has been appointed as the company's General Manager, succeeding Mr. Wu Xiangqian - Personnel change: The company appointed Mr. Liu Jian as **General Manager**[48](index=48&type=chunk) - Former General Manager change: Mr. Wu Xiangqian **no longer serves** as the company's General Manager[48](index=48&type=chunk) [Appointment of Company Deputy General Managers and Chief Engineer](index=18&type=section&id=5.聘任公司副总经理及总工程师) The company appointed Mr. Xiao Yaomeng, Mr. Zhang Chuanchang, and Mr. Wang Peng as Deputy General Managers, and Mr. Wang Chunyao as Chief Engineer - Personnel change: The company appointed Mr. Xiao Yaomeng, Mr. Zhang Chuanchang, and Mr. Wang Peng as **Deputy General Managers**; Mr. Wang Chunyao was appointed as **Chief Engineer**[49](index=49&type=chunk) - Former senior management change: Mr. Zhao Honggang **no longer serves** as Deputy General Manager; Mr. Wang Fuqi **no longer serves** as Chief Engineer[49](index=49&type=chunk) [Unfulfilled Commitments Overdue During the Reporting Period](index=19&type=section&id=3.4%20报告期内超期未履行完毕的承诺事项) There were no unfulfilled commitments overdue during the reporting period - There are **no unfulfilled commitments overdue**[50](index=50&type=chunk) [Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Year-Start to End of Next Reporting Period](index=19&type=section&id=3.5%20预测年初至下一报告期期末的累计净利润可能为亏损或者与上年同期相比发生重大变动的警示及原因说明) Not applicable - Not applicable[50](index=50&type=chunk) [Appendix](index=20&type=section&id=Part%20IV.%20Appendix) This section contains the company's unaudited financial statements for Q1 2020, including balance sheets, income statements, and cash flow statements [Financial Statements](index=20&type=section&id=4.1%20财务报表) This section provides the company's unaudited consolidated and parent company financial statements for Q1 2020, detailing financial position, operating results, and cash flows - Includes **unaudited consolidated and parent company balance sheets, income statements, and cash flow statements** for Q1 2020[52](index=52&type=chunk)[57](index=57&type=chunk)[62](index=62&type=chunk)[54](index=54&type=chunk)[60](index=60&type=chunk)[66](index=66&type=chunk) [Consolidated Balance Sheet](index=20&type=section&id=合并资产负债表) As of March 31, 2020, consolidated total assets were 216.887 billion Yuan, with total liabilities at 135.912 billion Yuan Key Consolidated Balance Sheet Data (As of March 31, 2020 vs December 31, 2019) | Item | As of March 31, 2020 (Thousand Yuan) | As of December 31, 2019 (Thousand Yuan) | | :--- | :--- | :--- | | Total Assets | 216,887,452 | 207,821,363 | | Total Current Assets | 77,607,128 | 63,562,136 | | Total Non-Current Assets | 139,280,324 | 144,259,227 | | Total Liabilities | 135,912,580 | 124,297,241 | | Total Owners' Equity | 80,974,872 | 83,524,122 | [Parent Company Balance Sheet](index=22&type=section&id=母公司资产负债表) As of March 31, 2020, parent company total assets were 146.711 billion Yuan, with total liabilities at 81.602 billion Yuan Key Parent Company Balance Sheet Data (As of March 31, 2020 vs December 31, 2019) | Item | As of March 31, 2020 (Thousand Yuan) | As of December 31, 2019 (Thousand Yuan) | | :--- | :--- | :--- | | Total Assets | 146,711,534 | 141,921,095 | | Total Current Assets | 58,090,248 | 53,325,213 | | Total Non-Current Assets | 88,621,286 | 88,595,882 | | Total Liabilities | 81,602,538 | 77,788,571 | | Total Owners' Equity | 65,108,996 | 64,132,524 | [Consolidated Income Statement](index=24&type=section&id=合并利润表) Q1 2020 consolidated total operating revenue decreased by 5.47%, with net profit and net profit attributable to parent company shareholders also declining Key Consolidated Income Statement Data (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Thousand Yuan) | Q1 2019 (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 45,604,524 | 48,243,536 | -5.47 | | Total Operating Costs | 43,272,681 | 44,691,093 | -3.17 | | Operating Profit | 2,400,664 | 3,859,024 | -37.80 | | Total Profit | 2,485,089 | 3,915,437 | -36.53 | | Net Profit | 1,861,070 | 3,017,437 | -38.33 | | Net Profit Attributable to Parent Company Shareholders | 1,527,504 | 2,308,395 | -33.83 | | Basic Earnings Per Share (Yuan/share) | 0.3110 | 0.4699 | -33.82 | [Parent Company Income Statement](index=27&type=section&id=母公司利润表) Q1 2020 parent company operating revenue decreased by 11.19%, with net profit and net profit attributable to parent company shareholders also declining Key Parent Company Income Statement Data (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Thousand Yuan) | Q1 2019 (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,472,263 | 6,161,595 | -11.19 | | Operating Profit | 1,255,128 | 1,841,292 | -31.84 | | Total Profit | 1,309,681 | 1,888,201 | -30.64 | | Net Profit | 975,768 | 1,513,242 | -35.52 | | Net Profit Attributable to Parent Company Shareholders | 827,893 | 1,372,057 | -39.66 | | Basic Earnings Per Share (Yuan/share) | 0.1685 | 0.2793 | -39.67 | [Consolidated Cash Flow Statement](index=28&type=section&id=合并现金流量表) Q1 2020 saw a significant decrease in net cash from operating activities, while net cash from financing activities turned positive Key Consolidated Cash Flow Statement Data (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Thousand Yuan) | Q1 2019 (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,336,342 | 4,424,475 | -69.80 | | Net Cash Flow from Investing Activities | -2,216,967 | -2,710,523 | -18.21 | | Net Cash Flow from Financing Activities | 5,861,344 | -8,156,614 | / | | Net Increase in Cash and Cash Equivalents | 4,868,188 | -6,660,010 | / | | Cash and Cash Equivalents at Period End | 27,690,812 | 20,736,116 | 33.55 | [Parent Company Cash Flow Statement](index=30&type=section&id=母公司现金流量表) Q1 2020 saw a decrease in net cash from operating activities, while net cash from investing and financing activities both turned positive Key Parent Company Cash Flow Statement Data (Q1 2020 vs Q1 2019) | Item | Q1 2020 (Thousand Yuan) | Q1 2019 (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,260,203 | 2,011,482 | -37.35 | | Net Cash Flow from Investing Activities | 215,416 | -212,316 | / | | Net Cash Flow from Financing Activities | 1,451,125 | -7,169,245 | / | | Net Increase in Cash and Cash Equivalents | 2,935,010 | -5,369,811 | / | | Cash and Cash Equivalents at Period End | 7,523,571 | 8,283,822 | -9.18 | [Information on Adjustments to Financial Statements at the Beginning of the First Year of Application of New Revenue and Lease Standards from 2020](index=32&type=section&id=4.2%202020%20年起首次执行新收入准则、新租赁准则调整首次执行当年年初财务报表相关情况) Not applicable - Not applicable[69](index=69&type=chunk) [Explanation of Retrospective Adjustments to Prior Period Comparative Data for New Revenue and Lease Standards from 2020](index=32&type=section&id=4.3%202020%20年起首次执行新收入准则、新租赁准则追溯调整前期比较数据的说明) Not applicable - Not applicable[69](index=69&type=chunk) [Audit Report](index=32&type=section&id=4.4%20审计报告) Not applicable - Not applicable[69](index=69&type=chunk)

Financial Performance - The company reported a total equity of RMB 52.5 billion as of December 31, 2019, reflecting a year-on-year increase of 8%[6]. - The company’s total revenue for 2019 was RMB 36.2 billion, representing a growth of 12% compared to the previous year[6]. - The net profit attributable to shareholders for 2019 was RMB 5.1 billion, an increase of 15% year-on-year[6]. - The company's operating revenue for 2019 was CNY 200.65 billion, an increase of 23.09% compared to CNY 163.01 billion in 2018[17]. - The net profit attributable to shareholders for 2019 was CNY 8.67 billion, reflecting a growth of 9.60% from CNY 7.91 billion in the previous year[17]. - The net cash flow from operating activities reached CNY 24.87 billion, up by 10.87% from CNY 22.43 billion in 2018[17]. - The total assets at the end of 2019 amounted to CNY 207.82 billion, a slight increase of 2.03% from CNY 203.68 billion in 2018[17]. - The company's net assets attributable to shareholders were CNY 63.29 billion, representing a growth of 3.77% from CNY 60.99 billion at the end of 2018[17]. - Basic earnings per share for 2019 were CNY 1.7646, an increase of 9.60% compared to CNY 1.6101 in 2018[18]. - The weighted average return on equity for 2019 was 13.84%, an increase of 0.36 percentage points from 13.48% in 2018[18]. Dividends and Shareholder Returns - The board of directors proposed a cash dividend of RMB 5.80 per 10 shares, totaling an estimated cash dividend of RMB 2.849 billion for the year 2019[3]. - The company plans to distribute a cash dividend of RMB 28.490 billion for the 2019 fiscal year, which translates to RMB 0.58 per share[100]. - For the first half of 2019, the company approved a special cash dividend of RMB 49.120 billion, amounting to RMB 1.00 per share[96]. - The company’s net profit attributable to ordinary shareholders for 2019 was RMB 86.679 billion, with a dividend payout ratio of 32.87%[98]. Production and Sales - In 2019, the company produced 106.39 million tons of raw coal and sold 116.12 million tons of commercial coal, achieving a revenue of 200.65 billion RMB and a net profit attributable to shareholders of 8.668 billion RMB, marking historical highs in multiple economic indicators[32]. - The total sales of commercial coal amounted to 116,119 thousand tons, reflecting a growth of 1.91% year-on-year[35]. - The methanol production increased by 6.40% to 1,762 thousand tons, while methanol sales rose by 6.32% to 1,749 thousand tons[35]. - The company's total coal sales revenue for 2019 reached 63,778 million RMB, an increase from 62,428 million RMB in 2018, representing a growth of 2.16%[41]. - The total coal production for the company was 94,469 thousand tons in 2019, with a sales volume of 116,119 thousand tons, indicating a slight increase in sales volume compared to 113,942 thousand tons in 2018[41]. Investments and Expansion Plans - The company plans to expand its production capacity by 10% in the next fiscal year to meet increasing market demand[4]. - The company has invested RMB 1.2 billion in new technology development for cleaner coal production methods[4]. - The company is exploring potential mergers and acquisitions to enhance its market position in the Asia-Pacific region[4]. - The company invested approximately 8.905 billion yuan in coal exploration and development during 2019, with significant expenditures on existing mines and new projects[70]. - The major coal mining project, Wanfeng Coal Mine, has a designed capacity of 1.8 million tons per year, with an investment of 3.23 billion yuan and expected trial production in 2021[71]. Research and Development - The company invested 265 million RMB in R&D, completing 60 technological achievements, with 19 reaching international advanced levels[31]. - The group’s research and development expenses increased by 67.72% to 265 million RMB in 2019[50]. - The number of R&D personnel was 2,592, making up 4.23% of the total workforce[58]. Risk Management and Challenges - The company faces risks related to fluctuating coal prices and regulatory changes in the energy sector, which may impact future performance[5]. - The company is focused on digital transformation and risk management to enhance operational efficiency and mitigate systemic risks[34]. - The company has implemented measures to manage credit risk, including strict credit limit monitoring and due diligence on partners[92]. Environmental and Social Responsibility - The company reported no major environmental pollution incidents during the reporting period[194]. - All key pollutant discharge units applied for discharge permits and complied with relevant environmental standards[195]. - The company has committed over 26 million RMB to poverty alleviation efforts, reflecting its corporate social responsibility[32]. - The company provided 138,000 tons of coal for winter heating to residents in Ordos City and Huazhou City, ensuring local residents' winter warmth[191]. - The company donated RMB 1 million to Uxin High School and RMB 3.75 million to Yijinhuoluo Banner for educational support, improving local educational conditions[191]. Legal and Regulatory Matters - The company is currently involved in an arbitration case with Yanzhou Coal Mining Company, claiming RMB 749 million for breach of a share transfer agreement, along with a penalty of RMB 656 million and additional costs totaling approximately RMB 1.435 billion[113]. - The company has faced no risks of suspension or termination of listing during the reporting period[112]. - The company has not faced any significant legal or regulatory penalties during the reporting period, maintaining a clean integrity status[126][127]. Related Party Transactions - The total amount of continuous related transactions with the controlling shareholder in 2019 was 3,829,693,000 CNY, accounting for 1.91% of total revenue[140]. - The total amount of related party transactions in 2019 was confirmed to be within the approved annual limits by independent non-executive directors[146]. - The company reported that all related party transactions were conducted on normal commercial terms and did not exceed the approved annual transaction limits[145]. Corporate Governance - The company is undergoing a board and supervisory committee reshuffle, with nominations for new candidates submitted for shareholder approval[184]. - The company appointed Mr. Liu Jian as the new General Manager on April 22, 2020, succeeding Mr. Wu Xiangqian[187]. - The company appointed a new securities affairs representative, Ms. Shang Xiaoyu[177].

Financial Performance - The company's sales revenue for 2019 was CNY 67,804,644, an increase from CNY 67,447,104 in 2018, representing a growth of 0.53%[23]. - Gross profit for 2019 was CNY 21,029,486, down from CNY 24,306,538 in 2018, indicating a decrease of 13.4%[23]. - Net profit attributable to shareholders for 2019 was CNY 9,388,645, an increase of 9.4% compared to CNY 8,582,556 in 2018[23]. - The total assets of the company as of December 31, 2019, were CNY 210,760,571, up from CNY 206,003,615 in 2018, reflecting a growth of 1.3%[25]. - The company's total borrowings decreased to CNY 65,375,491 in 2019 from CNY 68,677,923 in 2018, a reduction of 3.8%[25]. - The net cash generated from operating activities for 2019 was CNY 16,411,202, down from CNY 18,243,311 in 2018, a decrease of 10.0%[26]. - Earnings per share for 2019 were CNY 1.91, compared to CNY 1.75 in 2018, representing an increase of 9.1%[23]. - The company's net asset return rate for 2019 was 17.35%, an increase from 16.48% in 2018[25]. - The net asset value per share increased to CNY 11.02 in 2019 from CNY 10.60 in 2018, a growth of 3.95%[25]. - The proposed dividend per share for 2019 is CNY 0.58, up from CNY 0.54 in 2018, indicating a growth of 7.4%[24]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 5.80 per 10 shares, totaling approximately RMB 2.849 billion for the fiscal year 2019[5]. - The cash dividend distribution for 2019 is expected to be paid out by August 19, 2020, pending shareholder approval[113]. - The company’s cash dividend policy stipulates that the total cash dividends should account for approximately 35% of the net profit after statutory reserves[110]. - The company’s net profit attributable to ordinary shareholders for 2019 was RMB 86.679 billion, with a cash dividend payout ratio of 32.87%[111]. - The company’s net profit attributable to ordinary shareholders for the first half of 2019 was RMB 53.609 billion, with a cash dividend payout ratio of 91.63%[111]. Shareholder Information - The controlling shareholder, Yanzhou Coal Group, holds a 53.79% stake in the company as of the end of the reporting period[8]. - The company is subject to a 10% withholding tax on dividends paid to non-resident corporate shareholders[115]. - H-share individual shareholders from Hong Kong or Macau, or countries with a 10% dividend tax rate agreement with China, will have personal income tax withheld at a rate of 10% on dividends[116]. - For H-share individual shareholders from countries with a dividend tax rate agreement lower than 10%, a temporary withholding rate of 10% will apply until proper documentation is submitted[116]. - H-share individual shareholders from countries with a dividend tax rate between 10% and 20% will have personal income tax withheld at the actual tax rate specified in the relevant tax agreement[117]. - H-share individual shareholders from countries with a 20% tax rate agreement, or those without a tax agreement, will have personal income tax withheld at a rate of 20%[117]. - Mainland individual investors receiving dividends through the Stock Connect programs will have personal income tax withheld at a rate of 20%[118]. Legal and Compliance Matters - The independent auditor's report issued by ShineWing Certified Public Accountants (Hong Kong) confirms a standard unqualified opinion on the financial statements[5]. - The financial report has been confirmed by the chairman and senior management as true, accurate, and complete[5]. - The company has not reported any significant accounting errors or changes in accounting policies that would impact its financial statements[123]. - The company has maintained a strong compliance record, with no investigations or penalties from regulatory authorities during the reporting period[151]. - The company has effectively managed its legal risks, with all significant lawsuits concluded favorably[149]. Related Party Transactions - Related party transactions primarily involve the company and its controlling shareholder, Yanzhou Coal Group, along with other associated companies[166]. - In 2019, the total amount received by the company from the controlling shareholder for the sale of goods and services was CNY 3.83 billion, accounting for 1.91% of operating income[171]. - The total amount paid by the controlling shareholder to the company for the sale of goods and services was CNY 3.86 billion, accounting for 1.92% of operating income, representing a 42.47% increase compared to 2018[171]. - The company's profit from coal sales to the controlling shareholder in 2019 was CNY 1.11 billion, with operating revenue of CNY 2.86 billion and operating costs of CNY 1.75 billion[172]. - The independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and did not exceed the approved annual transaction limits[182]. Operational Highlights - The company produced 106.39 million tons of raw coal and sold 116.12 million tons of commercial coal during the reporting period, achieving a sales revenue of RMB 67.805 billion[35]. - The company invested RMB 265 million in technology research and development, completing 60 technological achievements, with 19 reaching international advanced levels[33]. - The company’s coal sales in the domestic market saw a 53.5% share of premium coal, reflecting the effectiveness of its premium coal strategy[36]. - The company’s domestic long-term contract customers accounted for 74% of sales, while direct supply customers exceeded 87%, effectively mitigating market volatility risks[36]. - The company operates seven power plants with a total installed capacity of 482 MW, selling excess power through local grids[30]. Risk Management - The company has disclosed major risks and countermeasures in the report, which investors are advised to pay attention to[5]. - The company emphasizes that forward-looking statements regarding future plans do not constitute substantive commitments to investors[5]. - The company is implementing cost management strategies to reduce production costs and improve efficiency[39]. - The company is focusing on market expansion by developing new markets for gas coal and chemical raw materials coal[39]. - The company emphasizes digital transformation and risk management to enhance operational efficiency[39]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Shanghai Dongjiang Real Estate Development Co., Ltd. for a transaction price of RMB 185.37 million[186]. - The company also acquired 100% equity in Qingdao Dongfang Shenglong Industrial Co., Ltd. for RMB 53.40 million[186]. - The company approved the acquisition of a 10% interest in the Morabbin coal joint venture for AUD 30 million[187]. - The company has completed the equity transfer and business registration changes for the acquisitions mentioned[186]. Environmental and Social Responsibility - The company has cumulatively invested over RMB 26 million in poverty alleviation efforts, demonstrating its commitment to social responsibility[37]. - The company has initiated a new round of environmental protection actions, with key technologies for clean heating from coal reaching international leading levels[37]. - Employee housing allowances amounted to RMB 4.21 billion in 2019, reflecting the company's commitment to employee welfare[106]. - The company’s donation expenditure for the year 2019 was RMB 33.733 million[107].

[Important Notice](index=3&type=section&id=Part%20I.%20Important%20Notice) This section confirms the accuracy and completeness of the unaudited quarterly report, with guarantees from the board and financial officers [Report Statement](index=3&type=section&id=1.1%20Report%20Statement) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this unaudited quarterly report, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's chairman, CFO, and head of the financial management department guarantee the truthfulness, accuracy, and completeness of the financial statements[4](index=4&type=chunk) - This company's Q3 2019 report is unaudited[4](index=4&type=chunk) [Company Profile](index=4&type=section&id=Part%20II.%20Company%20Profile) This section provides key financial data, shareholder information, and details on preferred stock as of the report period end [Key Financial Data](index=4&type=section&id=2.1%20Key%20Financial%20Data) As of September 2019, total assets slightly decreased, but net assets attributable to shareholders grew by 9.05%, with year-to-date revenue and net profit increasing by 26.36% and 26.88% respectively Overview of Key Financial Data as of September 2019 | Indicator | As of Report Period End (Thousand Yuan) | As of Prior Year End (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 197,572,917 | 203,679,900 | -3.00 | | Net Assets Attributable to Shareholders of Listed Company | 66,509,894 | 60,991,768 | 9.05 | | **Year-to-Date (Jan-Sept)** | | | | | Net Cash Flow from Operating Activities | 14,833,159 | 12,653,079 | 17.23 | | Operating Revenue | 150,611,076 | 119,190,485 | 26.36 | | Net Profit Attributable to Shareholders of Listed Company | 6,983,703 | 5,504,014 | 26.88 | | Weighted Average Return on Net Assets (%) | 10.71 | 9.51 | Increase 1.20 percentage points | | Basic Earnings Per Share (Yuan/share) | 1.4218 | 1.1205 | 26.89 | Non-Recurring Gains and Losses Items and Amounts (Thousand Yuan) | Item | Current Period Amount (July-Sept) | YTD Amount (Jan-Sept) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 10,283 | -13,221 | | Government Grants Recognized in Current Profit/Loss | 12,560 | 63,179 | | Funds Occupancy Fees Received from Non-Financial Enterprises Recognized in Current Profit/Loss | 18,430 | 71,718 | | Gains/Losses from Fair Value Changes and Investment Income from Disposal of Financial Assets | -9,969 | 42,391 | | Reversal of Impairment Provisions for Receivables and Contract Assets Subject to Separate Impairment Testing | 889 | 92,786 | | Other Non-Operating Income and Expenses | -49,623 | 195,081 | | Impact on Minority Interests (After Tax) | 8,039 | -14,581 | | Income Tax Impact | 6,036 | -102,359 | | Total | -3,355 | 334,994 | [Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of Report Period End](index=5&type=section&id=2.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20Report%20Period%20End) As of September 30, 2019, the company had 70,981 shareholders, with Yankuang Group Co., Ltd. and HKSCC Nominees Limited as the top two, holding 46.16% and 39.66% respectively, alongside disclosures of major shareholders' long and short positions in H-shares - As of September 30, 2019, the company had **70,981 shareholders**[8](index=8&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yankuang Group Co., Ltd. | 2,267,169,423 | 46.16 | State-owned Legal Person | | HKSCC Nominees Limited | 1,948,192,403 | 39.66 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 25,546,389 | 0.52 | Overseas Legal Person | | Agricultural Bank of China Co., Ltd. - Invesco Great Wall CSI 300 Enhanced Index Securities Investment Fund | 23,104,329 | 0.47 | Other | | New China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 018L - FH002 Shanghai | 21,957,897 | 0.45 | Other | Major Shareholders' H-Share Interests/Short Positions | Major Shareholder Name | Share Class | Capacity | Number of Shares Held | Nature of Interest | Percentage of Company's H-Share Class | | :--- | :--- | :--- | :--- | :--- | :--- | | Yankuang Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 2,267,169,423 | Long Position | - | | Yankuang Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 391,507,272 | Short Position | - | | Yankuang Group | H-shares | Interest of Controlled Corporation | 374,989,000 | Long Position | 19.21% | | BNP Paribas Investment Partners SA | H-shares | Investment Manager | 117,641,207 | Long Position | 6.03% | | BlackRock, Inc. | H-shares | Interest of Controlled Corporation | 103,964,098 | Long Position | 5.33% | [Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders as of Report Period End](index=7&type=section&id=2.3%20Total%20Preferred%20Shareholders%2C%20Top%20Ten%20Preferred%20Shareholders%2C%20and%20Top%20Ten%20Unrestricted%20Preferred%20Shareholders%20as%20of%20Report%20Period%20End) The company had no preferred shareholders as of the report period end - Not applicable[14](index=14&type=chunk) [Significant Events](index=8&type=section&id=Part%20III.%20Significant%20Events) This section details overall operating performance, significant changes in financial statement items, progress on major events, and disclosures regarding unfulfilled commitments or profit warnings [Overall Operating Performance](index=8&type=section&id=3.1%20Overall%20Operating%20Performance) In the first three quarters of 2019, raw coal output slightly decreased by 0.43%, and commercial coal output by 2.26%, but commercial coal sales increased by 1.58%; railway transport volume and revenue declined, while methanol production and sales grew, power generation and sales decreased, and non-coal trade revenue significantly increased [Overview of Key Products and Services Operating Data](index=8&type=section&id=3.1.1%20Overview%20of%20Key%20Products%20and%20Services%20Operating%20Data) In the first three quarters of 2019, raw coal output slightly decreased by 0.43%, commercial coal output by 2.26%, but commercial coal sales increased by 1.58%; railway cargo volume decreased by 3.79%, power generation and sales by 10.85% and 10.88% respectively, while methanol production and sales grew by 3.24% and 3.87% Key Products and Services Operating Data for Q1-Q3 2019 | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Raw Coal Output (Thousand Tons) | 77,908 | 78,243 | -0.43 | | Commercial Coal Output (Thousand Tons) | 69,375 | 70,978 | -2.26 | | Commercial Coal Sales (Thousand Tons) | 83,992 | 82,689 | 1.58 | | Cargo Volume (Thousand Tons) | 14,834 | 15,419 | -3.79 | | Methanol Output (Thousand Tons) | 1,274 | 1,234 | 3.24 | | Methanol Sales (Thousand Tons) | 1,288 | 1,240 | 3.87 | | Power Generation (10,000 kWh) | 190,674 | 213,870 | -10.85 | | Power Sales (10,000 kWh) | 116,852 | 131,119 | -10.88 | [Operating Performance of the Group's Main Business Segments](index=8&type=section&id=3.1.2%20Operating%20Performance%20of%20the%20Group%27s%20Main%20Business%20Segments) Coal business saw slight decreases in raw and commercial coal output, notably at Heze Energy due to capacity adjustments and complex geology; overall commercial coal prices rose, but thermal coal prices for Yancoal Australia and Yancoal International declined; railway transport revenue and volume both decreased; coal chemical methanol production, sales, and revenue increased, though Yulin Energy's revenue fell; power generation and sales generally decreased, with Yulin Energy experiencing significant drops in power sales and revenue; non-coal trade revenue grew substantially - In Q1-Q3 2019, the Group produced **77.91 million tons of raw coal**, a **0.4% year-on-year decrease**, and **69.38 million tons of commercial coal**, a **2.3% year-on-year decrease**[15](index=15&type=chunk) - Heze Energy's raw coal and commercial coal output decreased by **27.76% and 27.88% year-on-year**, primarily due to the implementation of new approved annual raw coal production capacity and complex geological conditions[16](index=16&type=chunk)[17](index=17&type=chunk) Commercial Coal Sales for Q1-Q3 2019 | Business Segment | Q1-Q3 2019 Sales Volume (Thousand Tons) | Q1-Q3 2019 Sales Price (Yuan/Ton) | Q1-Q3 2018 Sales Volume (Thousand Tons) | Q1-Q3 2018 Sales Price (Yuan/Ton) | | :--- | :--- | :--- | :--- | :--- | | Company Washed Coal Subtotal | 11,995 | 841.21 | 10,689 | 773.02 | | Company Screened Raw Coal | 11,039 | 448.43 | 13,908 | 446.96 | | Heze Energy No. 2 Washed Coal | 1,451 | 1,138.23 | 2,121 | 1,014.80 | | Yancoal Australia Thermal Coal | 20,842 | 498.02 | 21,251 | 576.91 | | Yancoal International Thermal Coal | 4,159 | 373.57 | 4,472 | 405.87 | | Trading Coal | 17,666 | 624.15 | 12,753 | 624.59 | - In Q1-Q3 2019, the Group's coal business sales cost was **RMB 28.111 billion**, a **12.1% year-on-year increase**; Heze Energy's per-ton coal sales cost increased by **31.16% year-on-year**, mainly due to decreased commercial coal sales volume[19](index=19&type=chunk)[20](index=20&type=chunk) - Railway transportation business cargo volume decreased by **3.8% year-on-year** in Q1-Q3, revenue decreased by **4.7% year-on-year**, and costs increased by **5.8% year-on-year**[21](index=21&type=chunk) - Coal chemical business saw growth in both methanol output and sales, but Yulin Energy's sales revenue decreased by **26.94% year-on-year**, and Ordos Energy's sales revenue decreased by **16.58% year-on-year**[22](index=22&type=chunk)[23](index=23&type=chunk) - Power business experienced declines in both power generation and sales, with Yulin Energy's power sales volume, sales revenue, and sales cost significantly decreasing, primarily due to a year-on-year reduction in external power sales[24](index=24&type=chunk) - Non-coal trade business achieved sales revenue of **RMB 98.497 billion** and sales cost of **RMB 98.146 billion**[25](index=25&type=chunk) - Equity investment business generated a profit of **RMB 1.35 billion**[26](index=26&type=chunk) [Operating Performance of Yankuang Group Finance Co., Ltd. ("Yankuang Finance Company") during the Reporting Period](index=12&type=section&id=3.1.3%20Operating%20Performance%20of%20Yankuang%20Group%20Finance%20Co.%2C%20Ltd.%20(%22Yankuang%20Finance%20Company%22)%20during%20the%20Reporting%20Period) Yankuang Finance Company experienced decreases in operating revenue and net profit in the first three quarters of 2019, but net assets grew while total assets decreased Yankuang Finance Company Operating Performance (Million Yuan) | Indicator | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 249 | 266 | -6.39 | | Net Profit | 142 | 146 | -2.74 | | **Period-End Data** | | | | | Net Assets | 1,630 | 1,488 | 9.54 | | Total Assets | 18,635 | 23,146 | -19.49 | [Significant Changes and Reasons for Major Financial Statement Items and Financial Indicators](index=12&type=section&id=3.2%20Significant%20Changes%20and%20Reasons%20for%20Major%20Financial%20Statement%20Items%20and%20Financial%20Indicators) The company experienced significant changes across multiple balance sheet, income statement, and cash flow statement items, including substantial increases in prepayments, inventory, and payables, alongside notable decreases in receivables, deferred tax assets/liabilities, and current non-current liabilities; income statement showed significant revenue and cost growth but reduced management, finance, and income tax expenses; cash flow from operations increased, while investment and financing cash flows significantly decreased [Significant Changes and Reasons for Balance Sheet Items](index=12&type=section&id=3.2.1%20Significant%20Changes%20and%20Reasons%20for%20Balance%20Sheet%20Items) As of September 2019, prepayments surged by 165.22% year-on-year due to increased advance payments for exploration, mining rights, and trade; inventory grew by 44.24% driven by Qingdao Zhongyan and Yancoal International; notes payable increased by 146.48% from company and subsidiary increases; deferred tax assets and liabilities significantly decreased due to Yancoal Australia's presentation adjustments Significant Balance Sheet Item Changes (Million Yuan) | Item | Sept 30, 2019 | Dec 31, 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Notes Receivable | 3,118 | 4,429 | -29.60 | | Prepayments | 8,532 | 3,217 | 165.22 | | Inventories | 7,395 | 5,127 | 44.24 | | Deferred Income Tax Assets | 2,825 | 7,280 | -61.20 | | Other Non-Current Assets | 1,486 | 2,272 | -34.60 | | Notes Payable | 7,249 | 2,941 | 146.48 | | Contract Liabilities | 3,043 | 2,208 | 37.82 | | Non-Current Liabilities Due Within One Year | 4,104 | 7,195 | -42.96 | | Deferred Income Tax Liabilities | 3,286 | 8,122 | -59.54 | | Other Non-Current Liabilities | 1,952 | 427 | 357.14 | | Special Reserve | 3,952 | 3,046 | 29.74 | - Prepayments increased by **165.22%**, primarily due to Ordos Energy's advance payment of **RMB 1.156 billion** for Yingpanhao Coal Mine exploration rights, Haosheng Coal's advance payment of **RMB 1.200 billion** for Shilaowusu Coal Mine mining rights, and increased advance trade and equipment payments by Qingdao Zhongyin Ruifeng, Smart Logistics, and Zhongyin Financial Leasing[27](index=27&type=chunk) - Deferred income tax assets and liabilities significantly decreased, mainly due to Yancoal Australia's adjustment of presentation methods[27](index=27&type=chunk)[28](index=28&type=chunk) - Other non-current liabilities increased by **357.14%**, primarily due to a **RMB 1.461 billion** increase in Zhongyin Financial Leasing's asset-backed securities balance[28](index=28&type=chunk) [Significant Changes and Reasons for Income Statement Items](index=13&type=section&id=3.2.2%20Significant%20Changes%20and%20Reasons%20for%20Income%20Statement%20Items) In the first three quarters of 2019, operating revenue grew by 26.36% driven by significant increases in trading coal sales and other business revenue; operating costs rose by 36.05% consistent with increased trading coal and other business costs; management, finance, and income tax expenses all significantly decreased, with management expenses down 30.34% due to a prior-year one-time social insurance accrual, finance expenses down 40.25% from reduced interest and exchange losses, and income tax expenses down 38.86% due to changes in Yancoal Australia's deferred tax and taxable income Significant Income Statement Item Changes (Million Yuan) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | Primary Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 150,611 | 119,190 | 26.36 | Trading coal sales revenue increased by RMB 3.061 billion year-on-year; other business revenue increased by RMB 31.225 billion year-on-year | | Operating Cost | 129,952 | 95,521 | 36.05 | Trading coal sales cost increased by RMB 3.075 billion year-on-year; other business cost increased by RMB 31.444 billion year-on-year | | Administrative Expenses | 3,137 | 4,503 | -30.34 | A one-time accrual of social insurance expenses of RMB 1.006 billion in the first three quarters of 2018 | | Finance Expenses | 1,952 | 3,267 | -40.25 | Interest expenses decreased by RMB 337 million year-on-year; exchange losses decreased by RMB 762 million year-on-year | | Income Tax Expense | 2,154 | 3,523 | -38.86 | Yancoal Australia's income tax expense decreased by RMB 1.610 billion year-on-year due to changes in deferred tax and taxable income from the acquisition of Coal & Allied Industries Limited | [Changes and Reasons for Cash Flow Statement Items](index=13&type=section&id=3.2.3%20Changes%20and%20Reasons%20for%20Cash%20Flow%20Statement%20Items) In the first three quarters of 2019, net cash flow from operating activities increased by 17.23% year-on-year, primarily due to a significant rise in cash received from sales of goods and services; net cash flow from investing activities decreased year-on-year, influenced by reduced cash recovered from disposals of fixed assets, intangible assets, and other long-term assets, and increased cash paid for acquiring such assets; net cash flow from financing activities significantly decreased year-on-year, mainly due to reduced cash from investments and borrowings, lower cash paid for debt repayment, and increased cash paid for other financing activities Cash Flow Statement Item Changes (Million Yuan) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | Primary Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 14,833 | 12,653 | 17.23 | Cash received from sales of goods and provision of services increased by RMB 34.970 billion year-on-year | | Net Cash Flow from Investing Activities | -3,254 | -2,481 | - | Net cash recovered from disposal of fixed assets, intangible assets, and other long-term assets decreased by RMB 2.460 billion year-on-year; cash paid for acquisition of fixed assets, intangible assets, and other long-term assets increased by RMB 2.495 billion year-on-year | | Net Cash Flow from Financing Activities | -19,337 | -9,326 | - | Cash received from investments decreased by RMB 4.963 billion year-on-year; cash received from borrowings decreased by RMB 8.832 billion year-on-year; cash paid for debt repayment decreased by RMB 10.825 billion year-on-year; cash paid for other financing activities increased by RMB 6.373 billion year-on-year | | Net Increase in Cash and Cash Equivalents | -8,325 | 1,247 | -767.60 | - | [Analysis of Progress, Impact, and Solutions for Significant Events](index=14&type=section&id=3.3%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) During the reporting period, the company made progress on several significant matters, including favorable outcomes or plaintiff withdrawals in some lawsuits, though others were remanded for retrial or appealed; related-party transactions involved signing a financial services agreement and jointly increasing capital for Yankuang Finance Company with Yankuang Group, and a diesel fuel supply agreement with Glencore Group by a subsidiary; other key events included terminating A-share private placement, acquiring Yankuang Finance Company equity, organizational restructuring, establishing a shipping industry investment fund, capital increases for Ordos Energy and Yingpanhao Company, re-appointing a securities representative, proposing an interim cash dividend, and forming Yankuang Smart Ecological Investment Development Co., Ltd [Litigation and Arbitration](index=14&type=section&id=3.3.1%20Litigation%20and%20Arbitration) The company is involved in multiple lawsuits; in the CCB Guhuai Road Branch financial loan dispute, the company appealed after losing at first instance, and the Shandong High Court remanded for retrial; in the company's sales contract dispute against Changjin Hao, the company won at first instance but appealed for not achieving litigation objectives; in Zikuang Yunxiao Company's sales contract dispute against the company, the company won; in two contract disputes by Xiamen Xinda against Zhongyin Logistics and the company, the plaintiffs withdrew, and the company reported suspected seal forgery to the police - In the financial loan dispute case filed by China Construction Bank Guhuai Road Branch against Yanzhou Coal Mining, the Shandong High Court ruled to remand the case to Jining Intermediate People's Court for retrial, with no ruling yet issued[33](index=33&type=chunk)[34](index=34&type=chunk) - In the sales contract dispute case filed by Yanzhou Coal Mining against Shandong Changjin Hao Coal Industry Co., Ltd., Jining Intermediate People's Court ruled in favor of the company at first instance, and the company has appealed to the Shandong High Court[34](index=34&type=chunk) - In the sales contract dispute case filed by Shandong Zikuang Coal Sales Co., Ltd. against Yanzhou Coal Mining, Jining Intermediate People's Court ruled to dismiss the plaintiff's claims, with Yanzhou Coal Mining winning the case[35](index=35&type=chunk) - In two contract dispute cases filed by Xiamen Xinda Co., Ltd. against Shandong Zhongyin Logistics Co., Ltd. and Yanzhou Coal Mining, the plaintiffs have both withdrawn their lawsuits; the company has reported suspected contract fraud involving forged seals to the public security authorities, and the case has been accepted[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Significant Related Party Transactions](index=16&type=section&id=3.3.2%20Significant%20Related%20Party%20Transactions) The company engaged in multiple related-party transactions with Yankuang Group and its subsidiaries, including a financial services agreement and a joint capital increase of RMB 1.5 billion for Yankuang Finance Company (company contributed RMB 1.425 billion), and a diesel fuel supply agreement between subsidiary Hunter Valley Operations and a Glencore Group subsidiary - The company signed a 'Financial Services Agreement' with Yankuang Group, stipulating that Yankuang Finance Company will provide financial services to Yankuang Group, with a defined transaction cap[37](index=37&type=chunk) - The company and Yankuang Group jointly increased the registered capital of Yankuang Finance Company by **RMB 1.5 billion** in cash, proportionate to their shareholdings, with the company contributing **RMB 1.425 billion**[38](index=38&type=chunk) - The company's subsidiary, Hunter Valley Operations, signed a 'Diesel Fuel Supply Agreement' with a Glencore Group subsidiary, setting annual transaction caps for 2019-2021[39](index=39&type=chunk) [Other Significant Events](index=16&type=section&id=3.3.3%20Other%20Significant%20Events) The company terminated its A-share private placement plan and completed the acquisition of a 5% equity stake in Yankuang Finance Company; organizational adjustments included abolishing the Coal Mine Rock Burst Prevention Research Center and establishing a Rock Burst Prevention Office and an Ecological Restoration Comprehensive Management Office; additionally, the company established the Blue Gold Shipping Industry Investment Fund, increased capital by RMB 2.7 billion for Ordos Energy and Yingpanhao Company, re-appointed a securities representative, proposed an interim cash dividend of RMB 4.912 billion for 2019, and formed a wholly-owned subsidiary, Yankuang Smart Ecological Investment Development Co., Ltd., with a registered capital of RMB 80 million - The company terminated its non-public issuance of A-shares and withdrew application documents, primarily due to changes in capital market conditions and financing timing[40](index=40&type=chunk)[41](index=41&type=chunk) - The company acquired a **5% equity stake** in Yankuang Finance Company held by China Credit Trust Co., Ltd. for **RMB 78 million**, completing equity transfer and business registration changes on August 7, 2019[42](index=42&type=chunk) - The company abolished the Coal Mine Rock Burst Prevention Research Center and established a Rock Burst Prevention Office and an Ecological Restoration Comprehensive Management Office to strengthen rock burst management and promote ecological restoration[43](index=43&type=chunk) - The company, through Yancoal International, jointly established the Blue Gold Shipping Industry Investment Fund with Shandong Shipping Asset Management, with a total scale of **USD 60 million**, and Yancoal International contributing **USD 50 million**[44](index=44&type=chunk)[45](index=45&type=chunk) - The company increased the registered capital of Ordos Energy by **RMB 2.7 billion** in cash, and Ordos Energy in turn increased capital for Yingpanhao Company by **RMB 2.7 billion**[46](index=46&type=chunk) - The company's board of directors proposed an interim cash dividend (special dividend) of **RMB 4.912 billion** (tax inclusive) for 2019, equivalent to **RMB 10.00** (tax inclusive) per 10 shares[48](index=48&type=chunk) - The company established a wholly-owned subsidiary, Yankuang Smart Ecological Investment Development Co., Ltd., with a registered capital of **RMB 80 million**, primarily engaged in ecological restoration, industrial project investment, and management[49](index=49&type=chunk) [Overdue Unfulfilled Commitments during the Reporting Period](index=19&type=section&id=3.4%20Overdue%20Unfulfilled%20Commitments%20during%20the%20Reporting%20Period) The company had no overdue unfulfilled commitments during the reporting period - Not applicable[50](index=50&type=chunk) [Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Prior Year-End to Next Reporting Period End](index=19&type=section&id=3.5%20Warning%20and%20Explanation%20of%20Potential%20Cumulative%20Net%20Profit%20Loss%20or%20Significant%20Change%20from%20Prior%20Year-End%20to%20Next%20Reporting%20Period%20End) The company had no warnings regarding potential cumulative net profit loss or significant changes during the reporting period - Not applicable[50](index=50&type=chunk) [Appendix](index=20&type=section&id=Part%20IV.%20Appendix) This section includes the unaudited financial statements, adjustments for the first-time adoption of new accounting standards, and a note on the absence of an audit report [Financial Statements](index=20&type=section&id=4.1%20Financial%20Statements) The appendix includes the company's consolidated and parent company balance sheets as of September 30, 2019, consolidated and parent company income statements for January-September and Q3 2019, and consolidated and parent company cash flow statements for January-September 2019, all unaudited - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, and parent company cash flow statement[52](index=52&type=chunk)[55](index=55&type=chunk)[59](index=59&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) - All financial statements are unaudited[52](index=52&type=chunk)[59](index=59&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) [Adjustments to Financial Statement Items at the Beginning of the First Year of Adoption of New Financial Instruments, Revenue, and Lease Standards](index=33&type=section&id=4.2%20Adjustments%20to%20Financial%20Statement%20Items%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Financial%20Instruments%2C%20Revenue%2C%20and%20Lease%20Standards) Effective January 1, 2019, the company adopted "Accounting Standard for Business Enterprises No. 21 – Leases (Revised)," adjusting relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption, without restating comparative period information, primarily affecting fixed assets, right-of-use assets, current non-current liabilities, and lease liabilities - The Group adopted 'Accounting Standard for Business Enterprises No. 21 – Leases (Revised)' effective **January 1, 2019**[76](index=76&type=chunk)[80](index=80&type=chunk) - Under the new lease standard, lessees no longer classify leases as operating or finance leases, but instead apply a unified accounting model[76](index=76&type=chunk)[80](index=80&type=chunk) - The cumulative impact of first-time adoption of the new lease standard adjusted relevant financial statement items at the beginning of the year, with no adjustment to comparative period information[76](index=76&type=chunk)[80](index=80&type=chunk) Key Adjustment Items in Consolidated Balance Sheet (Thousand Yuan) | Item | Dec 31, 2018 | Jan 1, 2019 Adjustment | | :--- | :--- | :--- | | Fixed Assets | 44,293,193 | -345,175 | | Right-of-Use Assets | - | 711,173 | | Non-Current Liabilities Due Within One Year | 7,194,915 | 119,273 | | Lease Liabilities | - | 388,311 | | Long-Term Payables | 355,169 | -141,586 | [Explanation of Retrospective Adjustment of Prior Comparative Data for First-Time Adoption of New Financial Instruments and Lease Standards](index=38&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustment%20of%20Prior%20Comparative%20Data%20for%20First-Time%20Adoption%20of%20New%20Financial%20Instruments%20and%20Lease%20Standards) The company only adjusted relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption of the new lease standard, without retrospectively adjusting prior comparative data - The Group adjusted relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption of the new lease standard, with no adjustment to comparative period information[80](index=80&type=chunk) [Audit Report](index=38&type=section&id=4.4%20Audit%20Report) This quarterly report does not include an audit report - Not applicable[80](index=80&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 105,975,591, representing a 38.88% increase compared to CNY 76,308,193 in the same period last year[16]. - The net profit attributable to shareholders for the same period was CNY 5,360,854, which is a 23.49% increase from CNY 4,341,279 year-on-year[16]. - The net cash flow from operating activities reached CNY 11,920,967, marking a 24.65% increase compared to CNY 9,563,372 in the previous year[16]. - The company's total assets at the end of the reporting period were CNY 202,392,645, a slight decrease of 0.63% from CNY 203,679,900 at the end of the previous year[16]. - The net assets attributable to shareholders increased to CNY 64,592,466, reflecting a 5.90% growth from CNY 60,991,768 at the end of the previous year[16]. - Basic earnings per share for the first half of 2019 were CNY 1.0914, up 23.49% from CNY 0.8838 in the same period last year[17]. - The weighted average return on net assets increased to 8.36%, up from 7.64% in the previous year, indicating improved profitability[17]. - The total operating revenue for the first half of 2019 was 105.976 billion yuan, an increase of 38.88% compared to 76.308 billion yuan in the same period last year[46]. - The operating cost increased by 51.20% to 91.271 billion yuan from 60.364 billion yuan year-on-year[46]. - The company's net profit for the first half of 2019 was impacted by a 2.97 billion CNY decrease in net profit for Yancoal International, primarily due to a one-time investment income recognition in the previous year[59]. Dividend and Shareholder Information - The board of directors proposed a cash dividend of RMB 10.00 per 10 shares based on a total share capital of 491,201.60 million shares as of June 30, 2019[3]. - The company plans to distribute a cash dividend of RMB 4.912 billion for the year 2019, which translates to RMB 10.00 per 10 shares[75]. - The total number of ordinary shareholders reached 69,681 by the end of the reporting period[160]. - Yanzhou Coal Mining Company Limited holds 2,267,169,423 shares, representing 46.16% of the total shares[161]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder being a state-owned entity[161]. - The company has maintained a public float exceeding 25%, complying with Hong Kong listing rules[159]. Legal and Compliance Matters - The report indicates that the company has no non-operating fund occupation by controlling shareholders or related parties[4]. - The report has not been audited, which may affect the reliability of the financial data presented[2]. - The company has confirmed that there are no significant lawsuits or arbitration matters during the reporting period[81]. - The company is involved in multiple lawsuits, including a claim for RMB 15,997.70 million against Hengfeng Company, which is currently under appeal[86]. - The company is currently undergoing a retrial process regarding a financial loan dispute with Weihai Commercial Bank, which involves a claim of RMB 99.119 million[85]. - The company has not faced any significant legal or administrative penalties during the reporting period[96]. Operational Highlights - The company operates several subsidiaries, including Yulin Energy Chemical and Heze Energy Chemical, focusing on coal and power business development[7]. - The company produced 52,486 thousand tons of raw coal in the first half of 2019, a decrease of 880 thousand tons or 1.65% year-on-year[27]. - The company achieved a sales revenue of 31.22 billion RMB from coal business, an increase of 1.289 billion RMB or 4.3% year-on-year[31]. - The company’s total coal sales volume was 55,288 thousand tons, a slight decrease of 216 thousand tons or 0.39% year-on-year[27]. - The company’s electricity generation was 132,089 MWh, a decrease of 8,819 MWh or 6.26% year-on-year[27]. - The company is focusing on the development of intelligent mining, having established the first operational intelligent mining face in China[26]. Environmental and Social Responsibility - The company is committed to environmental protection and compliance with regulations, implementing a responsibility system for environmental goals[3]. - The group has not experienced any major environmental pollution incidents during the reporting period and has complied with relevant environmental laws and regulations[137]. - The group has established comprehensive pollution control facilities across its coal mines, power plants, and chemical enterprises, ensuring stable operation and compliance with emission standards[141]. - The company actively engaged in poverty alleviation, investing RMB 3.45 million to support five villages in Yijinhuoluo Banner and contributing RMB 1.95 million to local agricultural projects[131]. - The company provided 77,000 tons of coal for winter heating to impoverished areas in Ordos City and Huaiyang County[131]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with legal and regulatory requirements[155]. - The company has implemented a performance-based salary system for its directors and senior management, linking compensation to actual operational results[153]. - The company has adopted a comprehensive risk management approach to enhance its governance practices[156]. - The company has revised its articles of association to align with the latest regulatory requirements and operational needs[154]. Future Outlook and Strategic Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[16]. - The company aims to optimize its product structure by increasing the production of premium coal and expanding its market share in high-value coal segments[70]. - The company is focusing on cost control measures to maintain stable costs for its main products and improve operational efficiency[70]. - The company plans to enhance its coal production efficiency by implementing smart mining and transportation systems, aiming for balanced and stable production[70].

Financial Performance - Sales revenue for the first half of 2019 reached CNY 33,237,425 thousand, representing a 3.16% increase compared to CNY 32,220,096 thousand in the same period of 2018[15]. - The net profit attributable to shareholders for the first half of 2019 was CNY 5,809,977 thousand, a 25.68% increase from CNY 4,622,671 thousand in the previous year[15]. - Earnings per share for the first half of 2019 was CNY 1.18, up 25.53% from CNY 0.94 in the same period of 2018[15]. - The company's total assets as of June 30, 2019, were CNY 196,280,582 thousand, compared to CNY 206,003,615 thousand at the end of 2018[16]. - The net cash generated from operating activities for the first half of 2019 was CNY 8,378,922 thousand, a 5.50% increase from CNY 7,941,801 thousand in the same period of 2018[17]. - The company's net asset return rate was 9.50% for the first half of 2019, down from 16.48% for the full year of 2018[16]. - The company reported a decrease in cash and cash equivalents of CNY 4,600,233 thousand for the first half of 2019, compared to an increase of CNY 2,556,356 thousand in the same period of 2018[17]. Coal Production and Sales - In the first half of 2019, the company produced 52,486 thousand tons of raw coal, a decrease of 880 thousand tons or 1.65% year-on-year[24]. - The company achieved coal sales of 55,288 thousand tons in the first half of 2019, a slight decrease of 216 thousand tons or 0.39% compared to the same period in 2018[24]. - The company reported a coal business revenue of 31.22 billion RMB in the first half of 2019, an increase of 1.289 billion RMB or 4.3% year-on-year[28]. - The total coal sales volume for the first half of 2019 was 55,288 thousand tons, generating revenue of 31,220 million yuan, compared to 55,504 thousand tons and 29,931 million yuan in the same period of 2018[31]. - The average selling price of coal increased to 564.68 yuan per ton in the first half of 2019, up from 539.25 yuan per ton in the first half of 2018, reflecting a price increase of approximately 4.4%[31]. - The sales volume in the power sector reached 25,592 thousand tons, contributing 12,414 million yuan in revenue, compared to 23,235 thousand tons and 12,453 million yuan in the same period of 2018[32]. - The sales volume in the metallurgical sector was 3,978 thousand tons, generating revenue of 3,608 million yuan, compared to 3,802 thousand tons and 3,513 million yuan in the same period of 2018[32]. Investments and Subsidiaries - The company holds a 51.81% equity stake in its controlling shareholder, Yanzhou Coal Group Co., Ltd., as of the report date[5]. - The company has a 98.33% equity stake in its subsidiary, Heze Energy Chemical Co., Ltd., as of the report date[5]. - The company has a 62.26% equity stake in Yanzhou Coal Australia Limited, which is listed on both the Australian Securities Exchange and the Hong Kong Stock Exchange[6]. - The major subsidiary, Yancoal Australia, reported total assets of 51.722 billion yuan and a net profit of 274.6 million yuan for the first half of 2019[50]. - The company completed the acquisition of 100% equity in Shanghai Dongjiang Real Estate Development Co., Ltd. for RMB 185.37 million, as approved by the board meeting on March 29, 2019[139]. Legal and Compliance Issues - The company is involved in a legal dispute with Xiamen Xinda, claiming a principal amount of RMB 164 million and corresponding interest[83]. - The arbitration case with Inner Mongolia New Changjiang Mining Investment Co., Ltd. involves a claim for RMB 749 million for equity transfer price and RMB 656 million in penalties, totaling approximately RMB 1.435 billion[86]. - The company is currently undergoing arbitration proceedings, and the impact of these legal matters on current and future profits remains uncertain[86]. - The company is facing a financial loan dispute with China Construction Bank, with a claim of RMB 5,966.90 million for loan repayment and corresponding interest[93]. - The company has not yet received a ruling from the Qingting Intermediate Court regarding the loan dispute with Weifang Commercial Bank[90]. - The company is actively managing its legal disputes to mitigate potential impacts on its financial performance[93]. Environmental Compliance - The company reported no major environmental pollution incidents during the reporting period and complied with all relevant environmental laws and regulations[164]. - Key pollutant emissions from the company's coal mines, including COD and ammonia nitrogen, were within the permitted limits, with actual emissions of 292 tons COD and 3.7 tons ammonia nitrogen from the Nandian coal mine[165]. - The company's power plants achieved compliance in emissions of major pollutants such as smoke dust, sulfur dioxide, and nitrogen oxides, maintaining stable operation of pollution control facilities[164]. - The company has established a complete environmental management system to prevent pollution and ecological damage from the source, aiming to build a resource-saving and environmentally friendly enterprise[164]. - The company has completed the ultra-low emission transformation for all boilers in its power plants, ensuring compliance with environmental standards[167]. Corporate Governance - The company has maintained compliance with corporate governance documents and the Hong Kong Listing Rules throughout the reporting period[184]. - The company emphasizes transparency and accountability in its governance practices, ensuring compliance with both domestic and international regulations[183]. - The company has established a performance-based salary system for its directors and senior management, linking compensation to operational results[179]. - The company has revised its articles of association to align with the latest regulatory requirements, enhancing its corporate governance structure[182]. - The company has implemented a robust investor relations management system to facilitate effective communication with the capital market[185]. Shareholder Information - The total number of ordinary shareholders reached 69,681 by the end of the reporting period[188]. - The largest shareholder, 克骥集团有限公司, holds 2,267,169,423 shares, representing 46.16% of the total shares[189]. - The second largest shareholder, 香港中央结算(代理人)有限公司, decreased its holdings by 3,017,146 shares, now holding 1,945,591,353 shares, which is 39.61%[189]. - The company’s public float is confirmed to exceed 25% of total share capital, in line with Hong Kong Listing Rules[186]. - There were no changes in the controlling shareholder or actual controller during the reporting period[198].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This chapter emphasizes the guarantee of truthfulness, accuracy, and completeness of the quarterly report content by Yanzhou Coal Mining Company Limited's Board of Directors, Supervisory Board, and senior management, and clarifies the responsibility of key personnel for the financial statements' authenticity - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content, with no false records, misleading statements, or major omissions[3](index=3&type=chunk) - Mr. Li Xiyong, the company's responsible person, Mr. Zhao Qingchun, the CFO, and Mr. Xu Jian, the head of the financial management department, guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[3](index=3&type=chunk) - This company's 2019 first-quarter report is unaudited[3](index=3&type=chunk) [Basic Company Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This chapter outlines Yanzhou Coal Mining's key financial data and shareholder holdings for the first quarter of 2019, showing a slight decrease in total assets but significant growth in net assets attributable to shareholders and net cash flow from operating activities, alongside increased revenue and net profit [Key Financial Data](index=4&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In Q1 2019, the company's total assets decreased by 3.26% year-over-year, while net assets attributable to shareholders grew by 4.09%, and net cash flow from operating activities significantly increased by 35.30% 2019 First Quarter Key Financial Data (Consolidated Statements) | Indicator | Current Period End/Year-to-Date (Thousand Yuan) | Prior Year End/Prior Year-to-Date (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet:** | | | | | Total Assets | 197,037,106 | 203,679,900 | -3.26 | | Net Assets Attributable to Shareholders of Listed Company | 63,488,789 | 60,991,768 | 4.09 | | **Income Statement:** | | | | | Operating Revenue | 48,243,536 | 32,333,709 | 49.21 | | Net Profit Attributable to Shareholders of Listed Company | 2,308,395 | 2,227,536 | 3.63 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 2,229,570 | 2,166,053 | 2.93 | | Weighted Average Return on Net Assets (%) | 3.70 | 4.01 | Decreased by 0.31 percentage points | | Basic Earnings Per Share (Yuan/Share) | 0.4699 | 0.4535 | 3.62 | | Diluted Earnings Per Share (Yuan/Share) | 0.4699 | 0.4535 | 3.62 | | **Cash Flow Statement:** | | | | | Net Cash Flow from Operating Activities | 4,424,475 | 3,270,162 | 35.30 | 2019 First Quarter Non-Recurring Gains and Losses | Item | Current Period Amount (Thousand Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 388 | | Government Subsidies Included in Current Profit/Loss | 10,485 | | Funds Occupancy Fees Received from Non-Financial Enterprises Included in Current Profit/Loss | 93,296 | | Gains/Losses from Changes in Fair Value and Disposal of Financial Assets | 12,332 | | Other Non-Operating Income and Expenses | 47,608 | | Impact on Minority Interests (After Tax) | -24,503 | | Income Tax Impact | -60,781 | | Total | 78,825 | [Shareholder Holdings](index=5&type=section&id=2.2%20%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 79,068 shareholders, with Yancoal Group and HKSCC Nominees as the top two, holding 46.16% and 39.67% respectively, with stable holdings and no pledges or freezes - As of the end of the reporting period, the total number of shareholders was **79,068**[6](index=6&type=chunk) Top Ten Shareholders as of March 31, 2019 | Shareholder Name | Shares Held at Period End (Shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yancoal Group Co., Ltd. | 2,267,169,423 | 46.16 | State-owned Legal Person | | HKSCC Nominees Limited | 1,948,612,033 | 39.67 | Overseas Legal Person | | China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 005L - FH002 Shanghai | 22,065,202 | 0.45 | Other | | Central Huijin Asset Management Co., Ltd. | 19,355,100 | 0.39 | State-owned Legal Person | | National Social Security Fund 102 Portfolio | 19,103,061 | 0.39 | Other | | Abu Dhabi Investment Authority | 18,885,166 | 0.38 | Other | | National Social Security Fund 403 Portfolio | 12,884,351 | 0.26 | Other | | New China Life Insurance Co., Ltd. - Dividend - Group Dividend - 018L - FH001 Shanghai | 12,261,478 | 0.25 | Other | | Mo Jianrong | 7,594,500 | 0.15 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 6,791,793 | 0.14 | Overseas Legal Person | Major Shareholders' Interests and Short Positions in H-shares as of March 31, 2019 | Major Shareholder Name | Share Class | Capacity | Number of Shares Held (Shares) | Nature of Interest | Percentage of Company's H-share Class | Percentage of Company's Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yancoal Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 2,267,169,423 | Long Position | - | 46.16% | | Yancoal Group ① | H-shares | Interest of Controlled Corporation | 277,989,000 | Long Position | 14.24% | 5.66% | | BNP Paribas Investment Partners SA | H-shares | Investment Manager | 117,641,207 | Long Position | 6.03% | 2.39% | | BlackRock, Inc. | H-shares | Interest of Controlled Corporation | 115,722,028 | Long Position | 5.93% | 2.36% | | BlackRock, Inc. | H-shares | Interest of Controlled Corporation | 414,000 | Short Position | 0.02% | 0.01% | [Preferred Shareholder Information](index=7&type=section&id=2.3%20%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had no preferred shareholders, making this disclosure item not applicable - The company has no information on the total number of preferred shareholders, top ten preferred shareholders, or preferred shareholders with unrestricted shares[10](index=10&type=chunk) [Significant Matters](index=8&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter details Yanzhou Coal Mining's overall operating performance, significant changes in key financial statement items, and progress on important matters including litigation, major related party transactions, and other events for Q1 2019 [Overall Operating Performance](index=8&type=section&id=3.1%20%E6%80%BB%E4%BD%93%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9) In Q1 2019, the company's coal business saw a slight decrease in raw coal output but an increase in sales prices, while railway transportation, coal chemical, and power businesses all achieved growth, with non-coal trade revenue significantly increasing [Key Product and Service Operating Data](index=8&type=section&id=3.1.1%20%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E6%9C%8D%E5%8A%A1%E8%BF%90%E8%90%A5%E6%95%B0%E6%8D%AE) During the reporting period, the company's raw coal output slightly decreased by 0.27%, and commercial coal output decreased by 4.53%, while railway freight volume, methanol production, and power generation and sales all increased 2019 First Quarter Key Product and Service Operating Data | Item | 2019 First Quarter | 2018 First Quarter | Change (%) | | :--- | :--- | :--- | :--- | | **Coal Business (Thousand Tons):** | | | | | Raw Coal Output | 26,062 | 26,133 | -0.27 | | Commercial Coal Output | 23,192 | 24,293 | -4.53 | | Commercial Coal Sales Volume | 26,441 | 27,405 | -3.52 | | **Railway Transportation Business (Thousand Tons):** | | | | | Freight Volume | 5,600 | 5,149 | 8.76 | | **Coal Chemical Business (Thousand Tons):** | | | | | Methanol Production | 457 | 452 | 1.11 | | Methanol Sales Volume | 461 | 445 | 3.60 | | **Power Business (10,000 kWh):** | | | | | Power Generation | 68,355 | 64,833 | 5.43 | | Power Sales Volume | 43,250 | 37,092 | 16.60 | [Operating Performance by Main Business Segment](index=8&type=section&id=3.1.2%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) Coal business saw decreased output from some subsidiaries due to policy adjustments but increased output from Yancoal Australia and higher sales prices, while railway transportation, coal chemical, and power businesses showed varied performance, with non-coal trade revenue reaching 30.399 billion yuan - Coal business raw coal output was **26.06 million tons**, a year-over-year decrease of **0.3%**; commercial coal output was **23.19 million tons**, a year-over-year decrease of **4.5%**[11](index=11&type=chunk) - Heze Energy Chemical's raw coal and commercial coal output decreased year-over-year, primarily due to production organized according to new approved production capacity during the reporting period[13](index=13&type=chunk) - Haosheng Coal Industry's raw coal and commercial coal output decreased year-over-year, primarily due to production restrictions at Shilawusu Coal Mine affected by safety and environmental policies[13](index=13&type=chunk) - Yancoal Australia's raw coal output was **11.5 million tons**, a year-over-year increase of **13.11%**; commercial coal output was **8.818 million tons**, a year-over-year increase of **5.87%**[12](index=12&type=chunk)[13](index=13&type=chunk) - The Group's total commercial coal sales price was **595.67 yuan/ton**, an increase of **8.36%** compared to **549.73 yuan/ton** in the same period last year[15](index=15&type=chunk) - Coal business sales cost was **8.76 billion yuan**, a year-over-year increase of **714 million yuan** or **8.9%**[15](index=15&type=chunk) - Railway transportation business freight volume was **5.6 million tons**, a year-over-year increase of **8.8%**; revenue reached **109 million yuan**, a year-over-year increase of **5.7%**[17](index=17&type=chunk) - Yulin Energy Chemical and Ordos Energy Chemical's methanol sales revenue decreased by **14.84%** and **16.45%** year-over-year, respectively[19](index=19&type=chunk) - Huaju Energy's power business sales volume increased by **61.12%**, and sales revenue increased by **42.90%**[20](index=20&type=chunk) - Non-coal trade business achieved sales revenue of **30.399 billion yuan**, with sales cost of **30.327 billion yuan**[21](index=21&type=chunk) - Equity investment business achieved a profit of **296 million yuan**[21](index=21&type=chunk) [Operating Performance of Yancoal Group Finance Co., Ltd.](index=11&type=section&id=3.1.3%20%E6%8E%9B%E7%9F%BF%E9%9B%86%E5%9B%A2%E8%B4%A2%E5%8A%A1%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E8%BF%90%E8%90%A5%E6%83%85%E5%86%B5) Yancoal Group Finance Co., Ltd. reported Q1 2019 operating revenue of 82 million yuan, up 12.33%, and net profit of 56 million yuan, up 14.29%, despite a 29.61% year-over-year decrease in total assets Yancoal Group Finance Co., Ltd. Q1 2019 Operating Performance | Indicator | 2019 First Quarter | 2018 First Quarter | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 82 Million Yuan | 73 Million Yuan | 12.33 | | Net Profit | 56 Million Yuan | 49 Million Yuan | 14.29 | | **Period-End Data:** | March 31, 2019 | December 31, 2018 | Change (%) | | Net Assets | 1,543 Million Yuan | 1,488 Million Yuan | 3.70 | | Total Assets | 16,293 Million Yuan | 23,146 Million Yuan | -29.61 | [Significant Changes and Reasons for Major Financial Statement Items and Indicators](index=12&type=section&id=3.2%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) This section analyzes significant changes in the company's balance sheet, income statement, and cash flow statement items during the reporting period, attributing variations to factors like increased trade payables, debt repayments, and investment activity adjustments [Significant Changes and Reasons for Balance Sheet Items](index=12&type=section&id=3.2.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Prepayments significantly increased by 83.80% due to advance payments for mining rights and trade, while non-current liabilities due within one year and other current liabilities decreased due to debt repayments 2019 First Quarter Significant Balance Sheet Item Changes | Item | March 31, 2019 (Million Yuan) | December 31, 2018 (Million Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 5,913 | 3,217 | 83.80 | | Non-Current Liabilities Due Within One Year | 5,229 | 7,195 | -27.32 | | Other Current Liabilities | 2,164 | 7,282 | -70.28 | - Reasons for prepayment changes: Haosheng Coal Industry prepaid **2.054 billion yuan** for Shilawusu Coal Mine mining rights; Qingdao Zhongyin Ruifeng Guofeng International Trade Co., Ltd.'s prepaid trade款 increased by **770 million yuan** from the beginning of the year[23](index=23&type=chunk) - Reasons for changes in non-current liabilities due within one year: The company repaid **1.95 billion yuan** in corporate bonds during the reporting period[23](index=23&type=chunk) - Reasons for changes in other current liabilities: The company repaid **5 billion yuan** in short-term financing bills during the reporting period[23](index=23&type=chunk) [Significant Changes and Reasons for Income Statement Items](index=12&type=section&id=3.2.2%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Operating revenue surged by 49.21% due to higher self-produced coal prices and increased trade and other business income, leading to a 63.98% rise in operating costs, while investment income grew by 37.67% from equity method investments 2019 First Quarter Significant Income Statement Item Changes | Item | 2019 First Quarter (Million Yuan) | 2018 First Quarter (Million Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 48,244 | 32,334 | 49.21 | | Operating Cost | 40,725 | 24,835 | 63.98 | | Investment Income | 296 | 215 | 37.67 | - Reasons for operating revenue changes: Increased sales price of self-produced coal led to a year-over-year increase of **925 million yuan** in operating revenue; trade coal sales revenue increased by **395 million yuan** year-over-year; other business revenue increased by **15.379 billion yuan** year-over-year[24](index=24&type=chunk) - Reasons for operating cost changes: Coal business sales cost increased by **714 million yuan** year-over-year; other business costs increased by **15.164 billion yuan** year-over-year[24](index=24&type=chunk) - Reasons for investment income changes: The Group's equity investment income accounted for by the equity method increased year-over-year[24](index=24&type=chunk) [Changes and Reasons for Cash Flow Statement Items](index=12&type=section&id=3.2.3%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Net cash flow from operating activities increased by 35.29% due to higher cash receipts from sales, while net cash flow from investing activities turned positive, and net cash flow from financing activities significantly decreased by 215.18% due to reduced capital contributions and increased debt repayments 2019 First Quarter Significant Cash Flow Statement Item Changes | Item | 2019 First Quarter (Million Yuan) | 2018 First Quarter (Million Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,424 | 3,270 | 35.29 | | Net Cash Flow from Investing Activities | -2,711 | -4,469 | - | | Net Cash Flow from Financing Activities | -8,157 | 7,082 | -215.18 | | Net Increase in Cash and Cash Equivalents | -6,660 | 5,684 | -217.17 | - Reasons for increase in net cash flow from operating activities: Cash received from sales of goods and provision of services increased by **15.055 billion yuan** year-over-year[25](index=25&type=chunk) - Reasons for changes in net cash flow from investing activities: Cash received from investment recovery increased by **952 million yuan** year-over-year; cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets increased by **1.101 billion yuan** year-over-year[27](index=27&type=chunk) - Reasons for significant decrease in net cash flow from financing activities: Cash received from capital contributions decreased by **8.231 billion yuan** year-over-year; cash paid for debt repayment increased by **5.4 billion yuan** year-over-year[27](index=27&type=chunk) [Analysis of Progress, Impact, and Solutions for Significant Matters](index=13&type=section&id=3.3%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) This section details the progress of the company's litigation, major related party transactions, and other significant events during the reporting period, including ongoing lawsuits, successful defense in some cases, and strategic equity transactions [Litigation and Arbitration](index=13&type=section&id=3.3.1%20%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E6%83%85%E5%86%B5) The company is involved in four major lawsuits, with two contract disputes still in review or appeal, one factoring contract dispute where the company was exonerated, and one debt transfer contract dispute where the company won at first instance - Jinan Railway Coal Transportation and Trade Group Co., Ltd. v. Yanzhou Coal Mining Co., Ltd. sales contract dispute: The company lost at first instance, the second instance ruled the company liable for compensation, and the company has applied to the Shandong High Court for retrial; the impact is yet to be determined[28](index=28&type=chunk) - Yanzhou Coal Mining Co., Ltd. v. Jinan Railway Coal Transportation and Trade Group Co., Ltd. sales contract dispute: Jining Intermediate People's Court ruled to dismiss the company's litigation claims in a retrial, and the company has appealed to the Shandong High Court; the impact is yet to be determined[29](index=29&type=chunk) - Zhonghuixintong Commercial Factoring Co., Ltd. v. Yanzhou Coal Mining Co., Ltd. factoring contract dispute: Zhonghuixintong withdrew its lawsuit against Yanzhou Coal Mining, and the company was exonerated, which will not impact the company's current or future profits[30](index=30&type=chunk) - Luxing Real Estate Co., Ltd. v. Yanzhou Coal Mining Co., Ltd. debt transfer contract dispute: The company won at first instance in all 7 cases heard by Jining Intermediate People's Court and Rencheng District Court; the impact is yet to be determined[31](index=31&type=chunk) [Major Related Party Transactions](index=15&type=section&id=3.3.2%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93%E4%BA%8B%E9%A1%B9) The company signed a management entrustment agreement with Yancoal Group for management services to seven subsidiaries, receiving 7.3 million yuan annually, and its subsidiary acquired 100% equity in Shanghai Dongjiang Real Estate Development Co., Ltd. for 185.3709 million yuan - The company signed a 'Special Management Entrustment Agreement' with Yancoal Group, providing specialized management services to 7 subsidiaries of Yancoal Group, receiving an annual management fee of **7.3 million yuan**[32](index=32&type=chunk) - The company's wholly-owned subsidiary, Zhongyin Financial Leasing Co., Ltd., acquired **100%** equity of Shanghai Dongjiang Real Estate Development Co., Ltd. from Shanghai Zhouhai Real Estate Development Co., Ltd., a wholly-owned subsidiary of Yancoal Group, for a transaction price of **185.3709 million yuan**[33](index=33&type=chunk) [Other Significant Matters](index=15&type=section&id=3.3.3%20%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company sold 20.89% equity in Dongguan Haichang Industrial Co., Ltd. to Guantai Industrial for 784 million yuan, with 550 million yuan received, and nominated Mr. Liu Jian as a non-independent director candidate for the seventh board - The company sold **20.89%** equity of Haichang Company to Guantai Industrial for a transaction price of **784 million yuan**, and as of the report disclosure date, **550 million yuan** of the transaction price has been received[34](index=34&type=chunk) - The company nominated Mr. Liu Jian as a candidate for non-independent director of the seventh Board of Directors, to be submitted for approval at the company's 2018 Annual General Meeting to be held on May 24, 2019[35](index=35&type=chunk) [Overdue Unfulfilled Commitments During the Reporting Period](index=16&type=section&id=3.4%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) There were no overdue unfulfilled commitments during the reporting period - Not applicable[36](index=36&type=chunk) [Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Prior Year-End to Next Reporting Period-End](index=16&type=section&id=3.5%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company has not issued any warning regarding potential cumulative net profit loss or significant changes from the beginning of the year to the end of the next reporting period - Not applicable[36](index=36&type=chunk) [Appendix](index=17&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) The appendix includes Yanzhou Coal Mining's consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2019, along with explanations of adjustments made for the first-time adoption of new leasing standards [Key Financial Statements](index=17&type=section&id=4.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2019, offering comprehensive financial information on its financial position, operating results, and cash flows - The appendix includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, and parent company cash flow statement[38](index=38&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) [Adjustments for First-Time Adoption of New Accounting Standards](index=28&type=section&id=4.2%20%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5) Effective January 1, 2019, the company adopted the new leasing standard, adjusting opening financial statement items for cumulative impacts without retrospective adjustment of comparative period information, primarily affecting fixed assets, right-of-use assets, and lease liabilities - The company adopted 'Accounting Standard for Business Enterprises No. 21 – Leases (Revised)' (new leasing standard) effective **January 1, 2019**[54](index=54&type=chunk)[57](index=57&type=chunk) - According to the new leasing standard, lessees no longer distinguish between operating leases and finance leases, but adopt a unified accounting treatment model[54](index=54&type=chunk)[57](index=57&type=chunk) - The Group adjusted relevant items in the opening financial statements for the cumulative impact of the first-time adoption of the new leasing standard, without retrospective adjustment of comparative period information[54](index=54&type=chunk)[57](index=57&type=chunk) - Consolidated balance sheet adjustments: Fixed assets decreased by **202,650 thousand yuan**, right-of-use assets increased by **455,497 thousand yuan**, non-current liabilities due within one year increased by **68,309 thousand yuan**, long-term payables decreased by **141,586 thousand yuan**, and lease liabilities increased by **326,124 thousand yuan**[53](index=53&type=chunk)[54](index=54&type=chunk) - Parent company balance sheet adjustments: Fixed assets decreased by **2,473,847 thousand yuan**, right-of-use assets increased by **2,473,847 thousand yuan**, long-term payables decreased by **2,687,713 thousand yuan**, and lease liabilities increased by **2,687,713 thousand yuan**[55](index=55&type=chunk)[56](index=56&type=chunk) [Explanation of Retrospective Adjustments for First-Time Adoption of New Accounting Standards](index=33&type=section&id=4.3%20%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E8%AF%B4%E6%98%8E) The company adjusted opening financial statement items for the cumulative impact of the first-time adoption of the new leasing standard but did not retrospectively adjust prior period comparative data - The Group adjusted relevant items in the opening financial statements for the cumulative impact of the first-time adoption of the new leasing standard, without retrospective adjustment of comparative period information[58](index=58&type=chunk) [Audit Report](index=33&type=section&id=4.4%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This report does not include an audit report - Not applicable[58](index=58&type=chunk)

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section provides definitions for key terms and abbreviations used throughout the report [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information and presents key financial data and indicators for recent years [Company Basic Information](index=6&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This chapter provides basic information about Yanzhou Coal Mining Company Limited, including its name, legal representative, contact details, registered address, website, information disclosure media, and stock overview - The company's A-shares are listed on the Shanghai Stock Exchange (stock code 600188), and H-shares are listed on the Hong Kong Stock Exchange (stock code 01171)[14](index=14&type=chunk) [Key Accounting Data and Financial Indicators for the Past Three Years](index=7&type=section&id=%E4%B8%83%E3%80%81%20%E8%BF%91%E4%B8%89%E5%B9%B4%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved significant performance growth in 2018, with operating revenue increasing by 7.79% and net profit attributable to parent increasing by 16.81%, while net cash flow from operating activities surged by 39.65%, indicating strong operational and cash generation capabilities Key Accounting Data for the Past Three Years (Unit: RMB (Thousands)) | Indicator | 2018 | 2017 | YoY Change (%) | 2016 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 163,008,472 | 151,227,775 | 7.79 | 102,282,148 | | **Net Profit Attributable to Shareholders of Listed Company** | 7,908,904 | 6,770,618 | 16.81 | 2,161,814 | | **Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses)** | 8,491,453 | 5,751,936 | 47.36 | 1,451,924 | | **Net Cash Flow from Operating Activities** | 22,432,396 | 16,063,074 | 39.65 | 6,235,489 | | **Total Assets (Period-end)** | 203,679,900 | 194,887,291 | 4.51 | 153,046,361 | | **Net Assets Attributable to Shareholders of Listed Company (Period-end)** | 60,991,768 | 54,939,172 | 11.02 | 43,060,359 | Key Financial Indicators for the Past Three Years | Indicator | 2018 | 2017 | Change | 2016 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/share)** | 1.6101 | 1.3784 | Increase 16.81% | 0.4401 | | **Weighted Average Return on Net Assets (%)** | 13.48 | 14.00 | Decrease 0.52 percentage points | 5.17 | | **Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%)** | 14.47 | 11.90 | Increase 2.57 percentage points | 3.47 | [Differences in Accounting Standards Between Domestic and Overseas](index=8&type=section&id=%E5%85%AB%E3%80%81%20%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) Due to differences in business combinations under common control, special reserve provisions, classification of perpetual capital bonds, and reversal of long-term asset impairments, the company's net profit and net assets under IFRS differ from those under PRC GAAP 2018 Differences in Accounting Data Between Domestic and Overseas Standards (Unit: RMB (Thousands)) | Indicator | Under PRC GAAP | Under IFRS | Difference | | :--- | :--- | :--- | :--- | | **Net Profit for the Period** | 7,908,904 | 8,582,556 | 673,652 | | **Period-end Net Assets Attributable to Shareholders of Listed Company** | 60,991,768 | 52,077,360 | -8,914,408 | - Major reasons for differences include: 1) Different treatment of business combinations under common control; 2) Special reserves (e.g., maintenance and safety production fees) are recognized in equity under PRC GAAP but expensed under IFRS; 3) Perpetual capital bonds are recognized in equity under PRC GAAP but separately presented under IFRS; 4) Long-term asset impairment reversals are not allowed under PRC GAAP but permitted under IFRS[20](index=20&type=chunk)[21](index=21&type=chunk) [2018 Quarterly Financial Data](index=9&type=section&id=%E4%B9%9D%E3%80%81%202018%20%E5%B9%B4%E5%88%86%E5%AD%A3%E5%BA%A6%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) The company maintained stable operations across all quarters in 2018, with the fourth quarter achieving the highest net profit attributable to parent and net cash flow from operating activities, indicating significantly enhanced year-end operating efficiency and cash recovery capabilities 2018 Quarterly Key Financial Data (Unit: RMB (Thousands)) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 32,333,709 | 43,974,484 | 42,882,292 | 43,817,987 | | **Net Profit Attributable to Shareholders of Listed Company** | 2,227,536 | 2,113,743 | 1,162,735 | 2,404,890 | | **Net Cash Flow from Operating Activities** | 3,270,162 | 6,293,210 | 3,089,707 | 9,779,317 | [Business Overview](index=11&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section outlines the company's primary business segments, operating models, industry conditions, and core competitive advantages [Main Businesses, Operating Model, and Industry Conditions](index=11&type=section&id=%E4%B8%80%E3%80%81%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E5%8F%8A%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company primarily operates in four segments: coal, coal chemical, electromechanical equipment manufacturing, and power and heat, with coal being the core business, and its products are sold in China, Japan, and South Korea - The company's core businesses include coal, coal chemicals (methanol), electromechanical equipment manufacturing, and power and heat, with coal products primarily being thermal coal and pulverized coal[27](index=27&type=chunk) - In 2018, China's supply-side structural reform continued to advance, leading to a balanced supply and demand in the coal market, stable medium-to-high prices, and enhanced industry profitability[27](index=27&type=chunk) [Analysis of Core Competencies](index=11&type=section&id=%E4%B8%89%E3%80%81%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies are multifaceted, including optimized coal production, advanced coal chemical projects, enhanced financial investment capabilities, and strengthened international competitiveness through capital operations - Coal business: Three 10-million-ton-level mines have been completed and put into operation, and the scale benefits of the Shaanxi-Mongolia base are becoming apparent[29](index=29&type=chunk) - Capital operations: Yancoal Australia successfully listed on the Hong Kong Stock Exchange, becoming the first state-controlled company listed on both Australian and Hong Kong main boards, enhancing capital efficiency and international market influence[29](index=29&type=chunk) - Financial investment: Through controlling Linshang Bank and increasing its stake in Zheshang Bank, the company steadily advanced its financial investments, consolidating and enhancing its value creation capabilities[29](index=29&type=chunk) [Chairman's Report](index=12&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%91%A3%E4%BA%8B%E9%95%BF%E6%8A%A5%E5%91%8A%E4%B9%A6) This section provides the Chairman's review of the company's performance in the past year and outlines the strategic outlook for the upcoming year [2018 Performance Review](index=12&type=section&id=2018%E5%B9%B4%E4%B8%9A%E7%BB%A9%E5%9B%9E%E9%A1%B9) The Chairman's report highlights that in 2018, the company capitalized on favorable coal market conditions, achieving comprehensive improvements in scale, revenue, and profitability, with four key economic indicators reaching historical highs 2018 Key Operating Results | Indicator | 2018 Data | | :--- | :--- | | **Raw Coal Production** | 105.9 million tons | | **Commercial Coal Sales** | 113.94 million tons | | **Operating Revenue** | 163.008 billion RMB | | **Total Profit** | 15.043 billion RMB | | **Net Profit Attributable to Parent** | 7.909 billion RMB | | **Total Assets** | 203.680 billion RMB | - The company's four key economic indicators—coal production and sales, operating revenue, total profit, and total assets—all reached their best levels since the company's establishment[30](index=30&type=chunk) - Yancoal Australia successfully listed on the Hong Kong Stock Exchange, becoming the first state-controlled company listed on both Australian and Hong Kong main boards[30](index=30&type=chunk) [2019 Development Outlook](index=13&type=section&id=2019%E5%B9%B4%E5%8F%91%E5%B1%95%E5%B1%95%E6%9C%9B) Looking ahead to 2019, the company anticipates a generally balanced and stable coal market, with plans to sell 100 million tons of self-produced coal and drive high-quality development through synergistic growth across its three major bases, enhanced operational performance, and strengthened support systems - 2019 Operating Plan: The company plans to sell **100 million tons** of self-produced coal[31](index=31&type=chunk) - Strategic Focus: Strengthen and optimize the three major bases—Headquarters, Shaanxi-Mongolia, and Australia—with the Shaanxi-Mongolia base accelerating the release of advantageous capacity from three 10-million-ton mines, and the Australian base enhancing market control and influence[31](index=31&type=chunk) - Operating Strategy: Focus on "volume, cost, and profit" by increasing output through releasing advantageous capacity, reducing costs through comprehensive lean cost control, and enhancing profitability by optimizing product structure and extending the industrial chain[31](index=31&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a detailed analysis of the company's operational performance, financial position, cash flows, and key business segments [Operating Performance of Business Segments](index=14&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) In 2018, the company's main business segments all achieved production growth, with raw coal production increasing by 23.68% to 106 million tons, primarily driven by a significant increase in Yancoal Australia's output 2018 Key Business Production and Sales Data | Business Segment | Unit | 2018 | 2017 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Raw Coal Production** | Thousand tons | 105,895 | 85,620 | 23.68 | | **Commercial Coal Sales** | Thousand tons | 113,942 | 96,802 | 17.71 | | **Methanol Production** | Thousand tons | 1,656 | 1,614 | 2.60 | | **Methanol Sales** | Thousand tons | 1,645 | 1,611 | 2.11 | | **Railway Freight Volume** | Thousand tons | 19,879 | 14,385 | 38.19 | | **Power Generation** | 10,000 kWh | 277,533 | 267,434 | 3.78 | - Yancoal Australia's raw coal and commercial coal production significantly increased year-on-year, primarily due to the commissioning of the Moolarben underground mine and the consolidation of Coal & Allied production[35](index=35&type=chunk) - Haosheng Coal's production significantly decreased year-on-year due to the impact of safety and environmental protection policies[35](index=35&type=chunk) [Main Business Analysis](index=19&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's main business revenue and costs both increased, with the coal business gross margin at 44.67%, a year-on-year decrease of 2.16 percentage points, mainly due to faster rising costs of self-produced coal Main Business by Industry (Unit: RMB (Millions)) | By Industry | Operating Revenue | Operating Cost | Gross Margin (%) | Operating Revenue YoY (%) | Operating Cost YoY (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Coal Business** | 62,428 | 34,544 | 44.67 | 28.79 | 34.02 | Decrease 2.16 percentage points | | Of which: Self-produced Coal | 50,747 | 23,437 | 53.82 | 32.08 | 45.87 | Decrease 4.36 percentage points | | **Railway Transportation Business** | 420 | 178 | 57.62 | 38.61 | 2.89 | Increase 14.61 percentage points | | **Coal Chemical Business** | 3,495 | 2,254 | 35.51 | 12.42 | 2.08 | Increase 6.54 percentage points | Main Business by Region (Unit: RMB (Millions)) | By Region | Operating Revenue | Operating Cost | Gross Margin (%) | Operating Revenue YoY (%) | Operating Cost YoY (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Domestic** | 39,049 | 22,425 | 42.57 | 9.15 | 22.01 | Decrease 6.05 percentage points | | **International** | 28,398 | 15,433 | 45.65 | 68.06 | 47.32 | Increase 7.65 percentage points | - Among the cost components of self-produced coal, salaries and employee benefits, labor costs, and depreciation were the fastest-growing parts, increasing by **51.76%**, **184.33%**, and **53.09%** year-on-year, respectively[57](index=57&type=chunk) [Analysis of Expenses and Other Items](index=21&type=section&id=%E8%B4%B9%E7%94%A8%E5%92%8C%E5%85%B6%E4%BB%96%E7%A7%91%E7%9B%AE%E5%8F%98%E5%8A%A8%E8%AF%B4%E6%98%8E) During the reporting period, both selling expenses and administrative expenses increased significantly, while investment income more than doubled, primarily from investments in Zheshang Bank and Inner Mongolia Yitai Zhundong Railway - Selling expenses increased by **55.93%** year-on-year, mainly due to increased coal sales by Yancoal Australia, leading to a **2.116 billion RMB** increase in transportation, port fees, insurance, and resource royalty fees[50](index=50&type=chunk)[61](index=61&type=chunk) - Administrative expenses increased by **33.93%** year-on-year, primarily due to a one-time provision of **1.016 billion RMB** for social insurance during the reporting period[50](index=50&type=chunk)[61](index=61&type=chunk) - Investment income increased by **102.29%** year-on-year, mainly benefiting from investments in Zheshang Bank (income of **764 million RMB**) and Inner Mongolia Yitai Zhundong Railway (income of **196 million RMB**)[50](index=50&type=chunk)[61](index=61&type=chunk) [Cash Flow Analysis](index=22&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81) The company's cash flow significantly improved, with net cash flow from operating activities increasing by 39.65%, while net cash outflow from investing activities substantially decreased, and net cash flow from financing activities shifted from inflow to outflow Major Cash Flow Statement Item Changes (Unit: RMB (Millions)) | Item | Current Period | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 22,432 | 16,063 | 39.65 | | **Net Cash Flow from Investing Activities** | -6,401 | -27,477 | Not applicable | | **Net Cash Flow from Financing Activities** | -9,851 | 15,365 | -164.11 | - The increase in net cash flow from operating activities was primarily due to a **5.186 billion RMB** increase in cash received from sales of goods and a **7.186 billion RMB** decrease in cash paid for purchases of goods[65](index=65&type=chunk) - The significant decrease in net cash flow from financing activities was mainly due to a **27.851 billion RMB** year-on-year decrease in cash received from investments[65](index=65&type=chunk) [Analysis of Assets and Liabilities](index=23&type=section&id=1.%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) The company's total assets grew steadily by 4.51%, with significant increases in long-term equity investments and construction in progress, while other current liabilities substantially decreased due to repayment of short-term financing bonds - Long-term equity investments increased by **85.34%**, mainly due to increased holdings in Zheshang Bank (an increase of **4.399 billion RMB**) and the acquisition of equity in Linshang Bank (an increase of **2.163 billion RMB**)[68](index=68&type=chunk) - Construction in progress increased by **97.20%**, primarily invested in the Ordos Energy & Chemical Phase II coal chemical project (an increase of **3.867 billion RMB**) and the Yulin Energy & Chemical Phase II coal chemical project (an increase of **1.256 billion RMB**)[68](index=68&type=chunk) - Other current liabilities decreased by **50.40%**, mainly because the company's balance of ultra-short-term financing bonds decreased by **7 billion RMB**[69](index=69&type=chunk) [Coal Reserves](index=25&type=section&id=2.%E7%85%A4%E7%82%AD%E5%82%A8%E9%87%8F%E6%83%85%E5%86%B5) As of the end of 2018, the company's total in-situ resource volume, assessed according to JORC standards, was 11.739 billion tons, with total recoverable reserves of 2.539 billion tons, primarily located in Australia and China Coal Resources and Reserves (Unit: Million tons) | Major Mining Area | Geographical Location | Coal Type | In-situ Resource Volume | Recoverable Reserves | | :--- | :--- | :--- | :--- | :--- | | **Company's Own Coal Mines** | Jining City, Shandong Province | Thermal Coal | 797 | 296 | | **Heze Energy & Chemical** | Heze City, Shandong Province | 1/3 Coking Coal | 88 | 24 | | **Ordos Energy & Chemical** | Ordos City, Inner Mongolia | Thermal Coal | 363 | 212 | | **Yancoal Australia** | Queensland and New South Wales | PCI Coal, Thermal Coal, etc | 8,878 | 1,763 | | **Yancoal International** | Queensland and Western Australia | PCI Coal, Thermal Coal | 1,585 | 231 | | **Total** | — | — | **11,739** | **2,539** | [Significant Equity Investments](index=26&type=section&id=1.%E9%87%8D%E5%A4%A7%E7%9A%84%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84) In 2018, the company made two significant non-core equity investments totaling 3.921 billion RMB, both in commercial banking, aimed at steadily advancing financial investments and enhancing value creation capabilities 2018 Significant Equity Investment Projects (Unit: RMB (Billions)) | Equity Investment Project | Total Project Investment | Investment During Reporting Period | Investee Company | Primary Business | | :--- | :--- | :--- | :--- | :--- | | **Subscription of Zheshang Bank's New Shares** | 1.768 | 1.768 | Zheshang Bank | Commercial Banking | | **Acquisition of Linshang Bank Equity** | 2.153 | 2.153 | Linshang Bank | Commercial Banking | | **Total** | **3.921** | **3.921** | — | — | [Analysis of Major Holding and Associate Companies](index=27&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's main profit contributions come from its controlled subsidiaries, particularly Yancoal Australia, which achieved a net profit of 4.273 billion RMB in 2018, a significant year-on-year increase of 422.4% 2018 Financial Data of Major Holding Companies (Unit: RMB (Millions)) | Company Name | Total Assets | Net Assets | Net Profit | | :--- | :--- | :--- | :--- | | **Yancoal Australia** | 58,926 | 27,436 | 4,273 | | **Yancoal International** | 20,172 | 5,215 | 1,113 | | **Heze Energy & Chemical** | 8,150 | 5,946 | 1,009 | - Yancoal Australia's net profit in 2018 increased by **3.455 billion RMB** or **422.4%** year-on-year, primarily due to rising coal prices, the commissioning of the Moolarben underground project, and the acquisition of Coal & Allied[82](index=82&type=chunk) [Future Development and Capital Expenditure Plan](index=28&type=section&id=(%E5%9B%9B)%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF%E8%AE%A1%E5%88%92) The company projects capital expenditures of 9.024 billion RMB for 2019, a decrease from 10.809 billion RMB in 2018, with funds primarily allocated to maintaining existing production, technological upgrades, and key project construction 2019 Capital Expenditure Plan (Unit: RMB (10,000s)) | Major Project | 2019 Plan | 2018 Actual | | :--- | :--- | :--- | | **Ordos Energy & Chemical** | 263,272 | 400,077 | | **Yulin Energy & Chemical** | 97,563 | 128,349 | | **Heze Energy & Chemical** | 64,754 | 107,696 | | **Yancoal Australia** | 141,329 | 104,137 | | **Total** | **902,410** | **1,080,880** | - The company faces key risks including safety management, trade, exchange rate, and environmental protection, for which corresponding countermeasures have been developed[94](index=94&type=chunk) [Significant Events](index=31&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details important corporate actions, including profit distribution plans, major litigation, equity incentive schemes, and significant related party transactions [Profit Distribution Plan](index=31&type=section&id=%E4%B8%80%E3%80%81%E6%99%AE%E9%80%9A%E8%82%A1%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's board of directors proposed a 2018 cash dividend of RMB 5.40 (tax inclusive) per 10 shares, totaling 2.653 billion RMB, representing 33.54% of net profit attributable to parent, maintaining a consistent shareholder return policy Ordinary Share Dividend Distribution Plans for the Past Three Years (Unit: RMB (Billions)) | Dividend Year | Dividend per 10 Shares (RMB, tax incl.) | Cash Dividend Amount (RMB, tax incl.) | Ratio to Net Profit Attributable to Parent (%) | | :--- | :--- | :--- | :--- | | **2018** | 5.40 | 2.6525 | 33.54 | | **2017** | 4.80 | 2.3578 | 34.82 | | **2016** | 1.20 | 0.5894 | 35.73 | [Major Litigation and Arbitration Matters](index=38&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) During the reporting period, the company was involved in several significant litigation and arbitration cases, many of which involve third-party contract fraud using forged company seals, with ongoing legal proceedings and uncertain impacts on company profit - Xiamen Xinda contract dispute case: Involves principal amount of **164 million RMB**, the company believes the relevant seals were forged and has reported the case, which is still under trial[115](index=115&type=chunk) - Inner Mongolia Xinchangjiang arbitration case: The counterparty claims approximately **1.435 billion RMB** for breach of equity transfer agreement, but the company argues payment conditions were not met, and the case is still under trial[116](index=116&type=chunk) - Multiple lawsuits (e.g., with Weihai Commercial Bank, CCB Jining Dongcheng Branch) involve Shandong Hengfeng Power Fuel Co., Ltd. forging company seals for accounts receivable pledge financing, with cases still under trial or appeal[118](index=118&type=chunk)[123](index=123&type=chunk) [Equity Incentive Plan](index=48&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) In early 2019, the company approved and implemented its 2018 A-share stock option incentive plan, granting 46.32 million stock options to 499 incentive recipients at an exercise price of RMB 9.64 per option, aiming to establish a long-term incentive mechanism - The company granted **46.32 million** A-share stock options to 499 directors, senior executives, middle management, and core employees, accounting for approximately **0.94%** of the total share capital[127](index=127&type=chunk)[128](index=128&type=chunk) - The exercise price is **RMB 9.64** per option, with vesting periods of 24, 36, and 48 months, and exercise ratios of **33%**, **33%**, and **34%** for the three tranches, respectively[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) [Significant Related Party Transactions](index=50&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94/%E5%85%B3%E8%BF%9E%E4%BA%A4%E6%98%93) The company's related party transactions primarily involve its controlling shareholder, Yankuang Group, and key partners like Glencore and Sojitz, covering daily operations such as material supply, labor services, and financial services 2018 Related Party Transactions for Goods Sales/Purchases and Services with Controlling Shareholder (Unit: RMB (Thousands)) | Transaction Direction | Amount | % of Operating Revenue | | :--- | :--- | :--- | | **Sales/Services from the Group to Controlling Shareholder** | 3,556,594 | 2.18 | | **Sales/Services from Controlling Shareholder to the Group** | 2,710,218 | 1.66 | - Related party transactions with the Glencore Group primarily involve mutual purchases and sales of coal and sales services, with annual transaction amounts within the approved limits[139](index=139&type=chunk) - Independent non-executive directors and auditors have confirmed that the company's continuing related party transactions for 2018 complied with regulations, were fair and reasonable, and were in the overall interest of shareholders[141](index=141&type=chunk)[142](index=142&type=chunk) [Other Significant Matters](index=59&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During and after the reporting period, the company advanced several significant matters, including a non-public A-share offering, equity investments in commercial banks, the listing of Yancoal Australia, and state-owned enterprise reform initiatives - Non-public A-share offering: Proposed to raise no more than **6.35 billion RMB** for the acquisition of 100% equity in Coal & Allied, pending approval from the China Securities Regulatory Commission[161](index=161&type=chunk)[162](index=162&type=chunk) - Financial Investments: Completed investment in Linshang Bank, holding **19.75%** equity; increased stake in Zheshang Bank H-shares to **4.99%**[163](index=163&type=chunk)[167](index=167&type=chunk) - Capital Operations: Controlled subsidiary Yancoal Australia successfully listed on the Hong Kong Stock Exchange on December 6, 2018, stock code 03668[169](index=169&type=chunk) - State-owned Enterprise Reform: Progressed with the separation and transfer of "three supplies and one property" (water, electricity, heating, and property management) for employee residential areas, as well as enterprise-run municipal and community management functions[171](index=171&type=chunk)[172](index=172&type=chunk) [Changes in Share Capital and Shareholder Information](index=71&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section provides details on the company's share capital movements and the composition of its shareholder base, including major shareholders and the ultimate controlling party [Shareholder and Actual Controller Information](index=72&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) As of the end of 2018, the company had 83,084 ordinary shareholders, with Yankuang Group Co., Ltd. as the controlling shareholder, holding 51.81% directly and indirectly, and the Shandong Provincial SASAC as the actual controller Top Ten Shareholders' Shareholdings (As of End of 2018) | Shareholder Name | Shares Held | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | **Yankuang Group Co., Ltd.** | 2,267,169,423 | 46.16 | State-owned Legal Person | | **Hong Kong Securities Clearing Company Nominees Limited** | 1,948,608,499 | 39.67 | Overseas Legal Person | | **National Council for Social Security Fund 102 Portfolio** | 24,499,961 | 0.50 | Other | | **Central Huijin Asset Management Co., Ltd.** | 19,355,100 | 0.39 | State-owned Legal Person | - The controlling shareholder is Yankuang Group Co., Ltd., which directly and indirectly held **51.81%** of the company's equity at the end of the reporting period[220](index=220&type=chunk) - The actual controller is the Shandong Provincial State-owned Assets Supervision and Administration Commission[221](index=221&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=76&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) This section provides information on the shareholdings and remuneration of directors, supervisors, and senior management, as well as the overall employee structure and compensation policies [Shareholdings and Remuneration of Directors, Supervisors, and Senior Management](index=76&type=section&id=(%E4%B8%80)%20%E7%8E%B0%E4%BB%BB%E5%8F%8A%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%A6%BB%E4%BB%BB%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8%E5%8F%8A%E6%8A%A5%E9%85%AC%E6%83%85%E5%86%B5) During the reporting period, the shareholdings of the company's directors, supervisors, and senior management remained stable, with no changes, and their total pre-tax remuneration received from the company amounted to 9.9886 million RMB - At the end of the reporting period, the total pre-tax remuneration actually received by all directors, supervisors, and senior management was **9.9886 million RMB**[227](index=227&type=chunk)[237](index=237&type=chunk) - Some directors and supervisors, including Chairman Li Xiyong and Vice Chairman Li Wei, received remuneration from related party Yankuang Group[226](index=226&type=chunk) [Employee Information](index=85&type=section&id=%E5%85%AD%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%92%8C%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 64,473 employees, with production personnel constituting the largest group at 36,192, and approximately 40% of employees holding a college degree or above Employee Structure | Category | Number of People | | :--- | :--- | | **Total Employees** | 64,473 | | **Professional Structure** | | | Production Personnel | 36,192 | | Technical Personnel | 4,492 | | Administrative Personnel | 3,350 | | **Education Level** | | | College Degree or Above | 25,478 | | Secondary Education | 26,494 | - In 2018, the total employee salaries and allowances for the group amounted to **6.813 billion RMB**[243](index=243&type=chunk) [Corporate Governance](index=86&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section outlines the company's corporate governance framework, including its internal control systems, board committees, and compliance with regulatory requirements [Overview of Corporate Governance](index=86&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) During the reporting period, the company continuously improved its corporate governance structure, revising core policies such as the Articles of Association and Shareholder Meeting Rules, and establishing new regulations to meet regulatory requirements and company development - During the reporting period, the company revised its Articles of Association and the rules of procedure for the three meetings, and formulated 16 internal governance systems, including the "Management System for Shareholdings and Changes of Directors, Supervisors, Senior Management, and Insiders," further standardizing company operations[249](index=249&type=chunk) - The company's Board of Directors has four special committees: Audit, Remuneration, Nomination, and Strategy & Development, all of which performed their duties as required during the reporting period[270](index=270&type=chunk) - The company has adopted and complied with the Hong Kong Listing Rules' Corporate Governance Code, and in some aspects, such as the establishment of Board committees and securities trading codes, it is even more stringent than the Code's requirements[261](index=261&type=chunk) [Corporate Bonds Information](index=100&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section provides an overview of the company's outstanding corporate bonds, including their terms, credit ratings, and repayment capabilities [Overview of Corporate Bonds](index=100&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) As of the end of the reporting period, the company's outstanding corporate bonds totaled 17.05 billion RMB, comprising two ordinary corporate bonds and two perpetual corporate bonds, all serviced on time without default Outstanding Corporate Bonds (As of End of 2018) (Unit: RMB (Billions)) | Bond Abbreviation | Code | Maturity Date | Bond Balance (RMB Billions) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | 12兖煤02 | 122168 | 2022/7/23 | 40 | 4.95 | | 12兖煤04 | 122272 | 2024/3/3 | 30.50 | 6.15 | | 17兖煤Y1 | 143916 | 2020/8/17 | 50 | 5.70 | | 18兖煤Y1 | 143959 | 2021/3/26 | 50 | 6.00 | - The company's long-term corporate credit rating remains **AAA**, with a stable outlook; all bond credit ratings also remain **AAA**[296](index=296&type=chunk) - As of the end of 2018, the company's total bank credit line was **113.377 billion RMB**, with **60.677 billion RMB** utilized and an unused balance of **52.700 billion RMB**[304](index=304&type=chunk) [Financial Report](index=105&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the audited financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements [Audit Report](index=105&type=section&id=%E4%B8%80%E3%80%81%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) ShineWing Certified Public Accountants issued a standard unqualified audit opinion on the company's 2018 financial statements, affirming their fair presentation in all material respects in accordance with enterprise accounting standards - Audit Opinion: **Standard Unqualified Opinion**[308](index=308&type=chunk) - Key Audit Matter: Estimation of mining right impairment provisions, for which auditors performed procedures including evaluating valuation models and reviewing key assumptions (e.g., future cash flows, discount rates)[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk) [Financial Statements](index=108&type=section&id=%E4%BA%8C%E3%80%81%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter includes the company's 2018 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing growth in total assets, revenue, and profit, along with strong operating cash flow [Significant Changes in Accounting Policies](index=160&type=section&id=50.%20%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%92%8C%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E7%9A%84%E5%8F%98%E6%9B%B4) Effective January 1, 2018, the company adopted the newly revised revenue and financial instruments standards, which introduced the "expected credit loss" model and reclassified financial assets, leading to retrospective adjustments to opening financial statements - The company adopted the new revenue standard and new financial instruments standard effective **January 1, 2018**[434](index=434&type=chunk) - The new financial instruments standard replaced the "incurred loss" model with the "expected credit loss" model, which may lead to earlier recognition of impairment losses[436](index=436&type=chunk) - In accordance with the new standards, the company retrospectively adjusted its financial statements as of January 1, 2018, affecting various accounts including financial assets held for trading, available-for-sale financial assets, contract liabilities, other comprehensive income, and retained earnings[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) [Reference Documents](index=282&type=section&id=%E7%AC%AC%E5%8D%81%E4%BA%8C%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists all documents available for public inspection, including the audited financial statements and other regulatory filings