[Definitions](index=4&type=section&id=Section%201%20Definitions) This section provides definitions for frequently used terms in the report, ensuring clarity on company names, shareholders, subsidiaries, and accounting standards - The company is referred to as 'Yanzhou Coal Mining', with its H-shares and A-shares listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, respectively[7](index=7&type=chunk) - The controlling shareholder is Yankuang Group Co, Ltd, which directly and indirectly holds **56.01%** of the company's shares[7](index=7&type=chunk) - The report lists key subsidiaries and their primary operations, including Yulin Neng Hua, Heze Neng Hua, and Yancoal Australia[7](index=7&type=chunk)[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's basic information, stock profile, and key financial data for H1 2020, highlighting revenue growth but a sharp decline in net profit - The company's legal name is Yanzhou Coal Mining Company Limited, and the legal representative is Li Xiyong[10](index=10&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange under the stock code 600188; H-shares are listed on the Hong Kong Stock Exchange under the stock code 01171[15](index=15&type=chunk) Key Accounting Data for H1 2020 (Unit: CNY '000) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,613,418 | 105,975,591 | 3.43 | | Net Profit Attributable to Shareholders | 4,599,867 | 5,360,854 | -14.20 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,261,801 | 5,022,505 | -54.97 | | Net Cash Flow from Operating Activities | -1,556,885 | 11,920,967 | -113.06 | | Net Assets Attributable to Shareholders (End of Period) | 65,533,028 | 63,291,840 | 3.54 | | Total Assets (End of Period) | 218,370,843 | 207,821,363 | 5.08 | Key Financial Indicators for H1 2020 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.9381 | 1.0914 | -14.05 | | Basic EPS (Excluding Non-recurring Items) (CNY/share) | 0.4613 | 1.0225 | -54.89 | | Weighted Average Return on Equity (%) | 6.98 | 8.36 | Decrease of 1.38 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 3.43 | 7.83 | Decrease of 4.40 percentage points | - During the reporting period, the financial statements of Qingdao Duanxin Asset Management Co, Ltd and Yankuang Smart Ecology Co, Ltd were newly consolidated[19](index=19&type=chunk) - Differences between domestic and international accounting standards primarily relate to the measurement of business combinations under common control, recognition of special reserves, presentation of perpetual capital bonds, reversibility of long-term asset impairment provisions, and fair value adjustments of intangible assets in business combinations not under common control[23](index=23&type=chunk) Non-recurring Profit and Loss Items and Amounts for H1 2020 (Unit: CNY '000) | Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 58 | | Government Grants Included in Current Profit or Loss | 63,697 | | Gain from Investment Cost Being Less Than Fair Value of Identifiable Net Assets in Acquired Subsidiaries, Associates, and Joint Ventures | 3,854,861 | | Fair Value Changes in Financial Instruments and Investment Income from Disposal | 62,141 | | Reversal of Impairment Provisions for Individually Tested Receivables and Contract Assets | 47,886 | | Gains/Losses from Entrusted Loans | 55 | | Fair Value Changes in Investment Properties Measured at Fair Value | 9,606 | | Other Non-operating Income and Expenses | 78,540 | | Other Items Defined as Non-recurring Profit or Loss | -396,527 | | Minority Interest Impact | -1,313,529 | | Income Tax Impact | -68,722 | | **Total** | **2,338,066** | [Business Overview](index=10&type=section&id=Section%203%20Business%20Overview) This section outlines the company's primary operations in coal, chemicals, equipment manufacturing, and power, detailing its response to market volatility in H1 2020 - The company's main businesses include coal (a major producer, seller, and trader in China and Australia), coal chemicals (mainly methanol), electromechanical equipment manufacturing (hydraulic supports, roadheaders, shearers), and power and heat (seven power plants with a total installed capacity of 482MW)[28](index=28&type=chunk) - In H1 2020, the global COVID-19 pandemic led to a sluggish macroeconomic environment and increased volatility in the coal market, though supply and demand gradually rebalanced[28](index=28&type=chunk) - The company enhanced its core competitiveness by deepening institutional innovation, optimizing its industrial structure, and strengthening lean management, achieving breakthroughs in coal resource acquisition and intelligent mine construction[30](index=30&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=11&type=section&id=Section%204%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes H1 2020 performance by business segment, financial statement changes, and key risks, noting increased coal sales but lower prices [Overview of Operations](index=11&type=section&id=I.%20Discussion%20and%20Analysis%20of%20Operating%20Conditions) In H1 2020, the company saw increased production and sales volumes for coal, methanol, and electricity, while railway transport volume declined Key Business Production and Sales Volumes for H1 2020 ('000 tons / 10,000 kWh) | Item | H1 2020 | H1 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Saleable Coal Production ('000 tons) | 50,108 | 46,991 | 3,116 | 6.63 | | Saleable Coal Sales ('000 tons) | 67,620 | 55,288 | 12,333 | 22.31 | | Freight Volume ('000 tons) | 8,900 | 10,394 | -1,493 | -14.37 | | Methanol Production ('000 tons) | 935 | 846 | 90 | 10.59 | | Methanol Sales ('000 tons) | 934 | 834 | 100 | 11.97 | | Power Generation (10,000 kWh) | 141,701 | 132,089 | 9,612 | 7.28 | | Electricity Sales (10,000 kWh) | 89,437 | 79,327 | 10,110 | 12.74 | - In the first half of the year, the company sold **67.62 million tons** of saleable coal, including 48.22 million tons of self-produced coal, achieving 48.2% of the annual sales target for self-produced coal[31](index=31&type=chunk) [Analysis of Business Segments](index=11&type=section&id=II.%20Main%20Operating%20Conditions%20during%20the%20Reporting%20Period) This analysis covers segment performance, highlighting increased coal sales offset by lower prices, a significant rise in investment income, and negative operating cash flow [Coal Business](index=11&type=section&id=2.1%20Coal%20Business) In H1, coal production and sales volumes grew by 6.63% and 22.31% respectively, while sales revenue increased by 7.3% due to lower average selling prices Saleable Coal Production in H1 2020 ('000 tons) | Entity | H1 2020 | H1 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Company | 15,731 | 15,660 | 70 | 0.45 | | Shanxi Neng Hua | 750 | 839 | -89 | -10.58 | | Heze Neng Hua | 1,596 | 1,235 | 361 | 29.25 | | Ordos Neng Hua | 7,441 | 7,443 | -2 | -0.03 | | Haosheng Coal Industry | 3,477 | 1,189 | 2,287 | 192.38 | | Yancoal Australia | 18,428 | 17,849 | 578 | 3.24 | | Yancoal International | 2,686 | 2,776 | -90 | -3.25 | | Total | 50,108 | 46,991 | 3,116 | 6.63 | - Haosheng Coal Industry's saleable coal production **increased by 192.38%** year-on-year, as production at its Shilausu Coal Mine was restricted by safety and environmental policies in H1 2019[33](index=33&type=chunk) - In H1, coal sales volume was **67.62 million tons**, a year-on-year increase of 12.33 million tons or 22.3%; coal business sales revenue was **CNY 33.498 billion**, a year-on-year increase of CNY 2.278 billion or 7.3%[33](index=33&type=chunk) Coal Sales Price and Revenue in H1 2020 (CNY/ton, CNY million) | Operating Entity | 2020 Sales Price (CNY/ton) | 2020 Sales Revenue (CNY million) | 2019 Sales Price (CNY/ton) | 2019 Sales Revenue (CNY million) | | :--- | :--- | :--- | :--- | :--- | | Company | 525.78 | 8,332 | 655.65 | 10,584 | | Shanxi Neng Hua | 280.91 | 206 | 317.71 | 270 | | Heze Neng Hua | 878.70 | 1,395 | 1,146.62 | 949 | | Ordos Neng Hua | 228.31 | 1,407 | 269.18 | 1,756 | | Haosheng Coal Industry | 278.81 | 971 | 329.59 | 387 | | Yancoal Australia | 464.78 | 8,249 | 584.43 | 9,694 | | Yancoal International | 359.68 | 958 | 384.42 | 1,062 | | Traded Coal | 617.64 | 11,980 | 625.43 | 6,518 | | **Group Total** | **495.38** | **33,498** | **564.68** | **31,220** | - In H1, coal sales were primarily concentrated in the markets of China (50,659 thousand tons, CNY 25,642 million), Japan (3,878 thousand tons, CNY 2,045 million), South Korea (2,011 thousand tons, CNY 1,062 million), Singapore (4,588 thousand tons, CNY 1,702 million), and Australia (3,745 thousand tons, CNY 1,498 million)[37](index=37&type=chunk) - Most coal products were sold to the power (CNY 10,676 million), metallurgy (CNY 2,709 million), chemical (CNY 2,505 million), and trading (CNY 16,255 million) industries[38](index=38&type=chunk) - The cost of coal sales in H1 was **CNY 24.225 billion**, an increase of CNY 6.557 billion or 37.1% year-on-year, mainly due to the increase in coal sales volume[39](index=39&type=chunk) - The cost of sales per ton for Haosheng Coal Industry decreased year-on-year, primarily due to the increase in saleable coal sales volume[40](index=40&type=chunk) [Railway Transportation Business](index=14&type=section&id=2.2%20Railway%20Transportation%20Business) In H1, both freight volume and revenue from the railway transportation business decreased by 14.4% year-on-year, while costs decreased by 1.8% - In H1, railway assets completed a freight volume of **8.9 million tons**, a year-on-year decrease of 14.4%[41](index=41&type=chunk) - Railway transportation business revenue was **CNY 184 million**, a year-on-year decrease of 14.4%[41](index=41&type=chunk) - The cost of the railway transportation business was **CNY 82.502 million**, a year-on-year decrease of 1.8%[41](index=41&type=chunk) [Coal Chemical Business](index=14&type=section&id=2.3%20Coal%20Chemical%20Business) In H1, methanol production increased by 10.59% year-on-year, while both Yulin Neng Hua and Ordos Neng Hua saw declines in methanol sales revenue and costs Coal Chemical Production and Sales in H1 2020 ('000 tons) | Entity | H1 2020 Methanol Production | H1 2019 Methanol Production | Change (%) | H1 2020 Methanol Sales | H1 2019 Methanol Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 387 | 371 | 4.58 | 381 | 373 | 2.14 | | Ordos Neng Hua | 548 | 475 | 15.28 | 553 | 461 | 19.91 | Coal Chemical Sales Revenue and Costs in H1 2020 (CNY '000) | Entity | H1 2020 Sales Revenue | H1 2019 Sales Revenue | Change (%) | H1 2020 Cost of Sales | H1 2019 Cost of Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 497,399 | 639,321 | -22.20 | 400,877 | 519,301 | -22.80 | | Ordos Neng Hua | 718,550 | 774,797 | -7.26 | 447,145 | 576,751 | -22.47 | [Power Business](index=15&type=section&id=2.4%20Power%20Business) In H1, both power generation and electricity sales volumes increased, with Huaju Energy reporting growth in sales and revenue, while Yulin Neng Hua saw a significant drop in external power sales Power Business Production and Sales in H1 2020 (10,000 kWh) | Entity | H1 2020 Power Generation | H1 2019 Power Generation | Change (%) | H1 2020 Electricity Sales | H1 2019 Electricity Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 41,288 | 39,746 | 3.88 | 14,478 | 12,267 | 18.03 | | Yulin Neng Hua | 16,642 | 14,806 | 12.40 | 748 | 983 | -23.90 | | Heze Neng Hua | 83,772 | 77,537 | 8.04 | 74,211 | 66,077 | 12.31 | Power Business Sales Revenue and Costs in H1 2020 (CNY '000) | Entity | H1 2020 Sales Revenue | H1 2019 Sales Revenue | Change (%) | H1 2020 Cost of Sales | H1 2019 Cost of Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 59,456 | 49,031 | 21.26 | 45,762 | 42,208 | 8.42 | | Yulin Neng Hua | 1,445 | 1,870 | -22.73 | 2,508 | 3,864 | -35.10 | | Heze Neng Hua | 260,617 | 232,484 | 12.10 | 181,542 | 193,162 | -6.02 | - Yulin Neng Hua's power product sales, revenue, and costs decreased significantly due to a year-on-year reduction in external electricity sales[45](index=45&type=chunk) [Heat Business](index=15&type=section&id=2.5%20Heat%20Business) In H1, the company produced 650,000 steam tons of heat, sold 200,000 steam tons, and generated sales revenue of CNY 20.818 million with costs of CNY 18.938 million - In H1, the company produced **650,000 steam tons** of heat and sold **200,000 steam tons**[46](index=46&type=chunk) - Sales revenue was **CNY 20.818 million**, with a cost of sales of **CNY 18.938 million**[46](index=46&type=chunk) [Electromechanical Equipment Manufacturing Business](index=15&type=section&id=2.6%20Electromechanical%20Equipment%20Manufacturing%20Business) In H1, the electromechanical equipment manufacturing business achieved sales revenue of CNY 85.065 million and a cost of sales of CNY 60.235 million - In H1, the electromechanical equipment manufacturing business achieved sales revenue of **CNY 85.065 million** and a cost of sales of **CNY 60.235 million**[46](index=46&type=chunk) [Non-Coal Trading Business](index=15&type=section&id=2.7%20Non-Coal%20Trading%20Business) In H1, the non-coal trading business generated sales revenue of CNY 72.248 billion and a cost of sales of CNY 72.049 billion - In H1, the non-coal trading business generated sales revenue of **CNY 72.248 billion** and a cost of sales of **CNY 72.049 billion**[47](index=47&type=chunk) [Equity Investment Business](index=15&type=section&id=2.8%20Equity%20Investment%20Business) In H1, the equity investment business realized an investment income of CNY 4.065 billion - In H1, the equity investment business realized an investment income of **CNY 4.065 billion**[47](index=47&type=chunk) [Analysis of Changes in Financial Statement Items](index=15&type=section&id=2.9%20Analysis%20of%20Changes%20in%20Financial%20Statement%20Items) Operating revenue grew by 3.43% while operating costs rose by 8.33%, and net operating cash flow turned negative, though investment income surged due to an acquisition Changes in Financial Statement Items in H1 2020 (Unit: CNY million) | Item | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,613 | 105,976 | 3.43 | | Operating Costs | 98,874 | 91,271 | 8.33 | | Selling Expenses | 2,715 | 2,842 | -4.50 | | Administrative Expenses | 2,208 | 1,985 | 11.26 | | Finance Costs | 1,080 | 1,354 | -20.24 | | R&D Expenses | 84 | 79 | 6.56 | | Net Cash Flow from Operating Activities | -1,557 | 11,921 | -113.06 | | Net Cash Flow from Investing Activities | -3,734 | -2,021 | - | | Net Cash Flow from Financing Activities | 1 | -14,329 | - | | Investment Income | 4,065 | 1,095 | 271.17 | - The change in finance costs was mainly due to a **CNY 157 million** year-on-year decrease in interest expense and a **CNY 83 million** increase in foreign exchange gains[49](index=49&type=chunk) - The change in net cash flow from operating activities was primarily influenced by financial services from Yankuang Finance Company (net outflow of CNY 7.137 billion) and a **CNY 7.005 billion** year-on-year increase in cash paid for goods and services[49](index=49&type=chunk) - The significant increase in investment income was mainly due to gaining control of the Moraben Coal Joint Venture, which required re-measuring the previously held 85% equity at fair value, resulting in a recognized investment income of **CNY 3.401 billion**[49](index=49&type=chunk) [Significant Profit Changes from Non-Core Business](index=16&type=section&id=2.10%20Significant%20Profit%20Changes%20from%20Non-Core%20Business) The period's significant profit change was driven by the acquisition of a 10% stake in the Moraben Coal Joint Venture, which generated a one-time gain and a fair value re-measurement gain - The acquisition of a 10% stake in the Moraben Coal Joint Venture resulted in a one-time gain of **CNY 454 million**, increasing the net profit attributable to parent company shareholders by CNY 282 million year-on-year[51](index=51&type=chunk) - Gaining control of the Moraben Coal Joint Venture led to the re-measurement of the previously held 85% equity at fair value, recognizing an investment income of **CNY 3.401 billion** and increasing the net profit attributable to parent company shareholders by CNY 2.118 billion year-on-year[52](index=52&type=chunk) [Analysis of Assets and Liabilities](index=17&type=section&id=III.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the period, accounts receivable, inventories, short-term borrowings, and bonds payable all increased, with a significant amount of restricted assets Changes in Assets and Liabilities in H1 2020 (Unit: CNY million) | Item | End of Current Period | % of Total Assets | End of Prior Period | % of Total Assets | Change from Prior Period-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 7,527 | 3.45 | 4,495 | 2.16 | 67.45 | Increase in receivables from the Company, Yancoal International, Shandong Zhongyin International Trade, and Qingdao Zhongyin Ruifeng | | Prepayments | 4,877 | 2.23 | 3,484 | 1.68 | 39.98 | Increase in prepayments by the Company, Qingdao Zhongyin Ruifeng, Smart Logistics, and Yulin Neng Hua | | Inventories | 9,238 | 4.23 | 7,300 | 3.51 | 26.54 | Increase in inventories at Qingdao Zhongyan, Donghua Heavy Industry, and Smart Logistics | | Short-term Borrowings | 13,994 | 6.41 | 8,748 | 4.21 | 59.98 | Increase in short-term borrowings by the Company, Yancoal International, Qingdao Zhongyin Ruifeng, and Smart Logistics | | Contract Liabilities | 3,566 | 1.63 | 2,717 | 1.31 | 31.23 | Increase in contract liabilities at the Company, Qingdao Zhongyin Ruifeng, and Smart Logistics | | Bonds Payable | 19,589 | 8.97 | 14,567 | 7.01 | 34.47 | Issuance of Yanzhou Coal Mining 2020 Corporate Bonds (First Tranche) increased bonds payable by CNY 5 billion | | Deferred Tax Liabilities | 4,273 | 1.96 | 3,301 | 1.59 | 29.44 | Yancoal Australia's deferred tax liabilities increased by CNY 1.21 billion, while Yancoal International's decreased by CNY 239 million | - As of June 30, 2020, the Group's restricted assets amounted to **CNY 56.85 billion**, mainly including restricted cash, pledged accounts receivable financing, and assets mortgaged for loans[55](index=55&type=chunk) - As of June 30, 2020, equity attributable to parent company shareholders was **CNY 55.497 billion**, total borrowings were **CNY 74.088 billion**, and the debt-to-equity ratio was 133.5%[56](index=56&type=chunk) [Investment Analysis](index=19&type=section&id=IV.%20Investment%20Analysis) During the reporting period, the company completed the acquisition of a 10% stake in the Moraben Coal Joint Venture and disclosed its financial assets at fair value - During the reporting period, the Group acquired the 10% interest in the Moraben Coal Joint Venture held by Sojitz Moraben Resources[58](index=58&type=chunk) - At the end of the reporting period, the Group's financial assets measured at fair value through profit or loss were mainly the special royalty rights of Zhongshan Mine, investment properties of Wuxi Dingye, and equity investments, with an initial investment cost of **CNY 2.425 billion** and a period-end balance of **CNY 1.841 billion**[59](index=59&type=chunk) - At the end of the reporting period, financial liabilities measured at fair value through profit or loss were mainly interest rate swap agreements and non-contingent royalties, with a period-end balance of **CNY 155 million**[59](index=59&type=chunk) [Major Asset and Equity Sales](index=19&type=section&id=V.%20Major%20Asset%20and%20Equity%20Sales) The company sold 100% equity in its international trading subsidiaries to focus on its core coal business and enhance competitiveness - During the reporting period, the Group sold 100% of its equity in Yancoal International Trading Co, Ltd and Yancoal International (Singapore) Co, Ltd to Yankuang Alumina (Hong Kong) Co, Ltd[60](index=60&type=chunk) - This transaction helps the company further focus on its core coal business and enhance its core competitiveness, with a minor impact on the company's total profit[60](index=60&type=chunk) [Analysis of Major Subsidiaries and Associates](index=19&type=section&id=VI.%20Analysis%20of%20Major%20Subsidiaries%20and%20Associates) Yancoal Australia's net profit surged due to an acquisition, while other subsidiaries' results varied with coal sales volumes and market prices Financial Data of Major Subsidiaries in H1 2020 (Unit: CNY million) | Company Name | Registered Capital | Total Assets at June 30, 2020 | Net Assets at June 30, 2020 | Net Profit in H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Yancoal Australia | AUD 6,027 million | 56,032 | 31,559 | 3,646 | - Yancoal Australia's net profit for H1 2020 was **CNY 3.646 billion**, compared to CNY 2.746 billion in the prior year period, mainly due to gains from the acquisition of a 10% stake in the Moraben Coal Joint Venture, though operating profit decreased due to lower coal prices[63](index=63&type=chunk) - Heze Neng Hua's net profit for H1 2020 was **CNY 484 million**, compared to CNY 278 million in the prior year period, mainly due to an increase in coal sales volume[64](index=64&type=chunk) - Ordos Neng Hua reported a net loss of **CNY 38 million** for H1 2020, compared to a net profit of CNY 212 million in the prior year period, mainly due to a year-on-year decrease in coal market prices[64](index=64&type=chunk) - Haosheng Coal Industry's net profit for H1 2020 was **CNY 71 million**, compared to a net loss of CNY 187 million in the prior year period, mainly due to an increase in coal sales volume[65](index=65&type=chunk) Yankuang Finance Company Operating Indicators for H1 2020 (Unit: CNY million) | Indicator | End of Current Period / Current Period | Beginning of Current Period / Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Deposit Balance | 18,133 | 21,510 | -15.70 | | Loan Balance | 11,763 | 11,006 | 6.87 | | Operating Revenue | 283 | 252 | 12.18 | | Net Profit | 118 | 94 | 25.53 | | Net Assets | 3,267 | 3,149 | 3.73 | | Total Assets | 21,496 | 24,694 | -12.95 | [Information on Structured Entities Controlled by the Company](index=21&type=section&id=VII.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) Yancoal Australia's subsidiary, Watagan Mining Company, is a special purpose entity established for overseas asset securitization - Yancoal Australia's subsidiary, Watagan Mining Company Pty Limited, is a special purpose entity established for overseas asset securitization, with three coal mines in New South Wales, Australia as the underlying assets[69](index=69&type=chunk) [Other Disclosures](index=21&type=section&id=VIII.%20Other%20Disclosures) This section details risks and mitigation strategies, capital expenditure plans, H2 2020 outlook, and the impact of foreign exchange fluctuations - The company faces **safety risks**, with countermeasures including improving the safety control system, promoting intelligent upgrades, strengthening special rectification of safety hazards, and enhancing safety assessment and accountability[70](index=70&type=chunk) - The company faces **exchange rate risks**, with countermeasures including strengthening analysis of exchange rate trends, using various financial instruments to reduce fluctuation risks, and entering into forward foreign exchange contracts[71](index=71&type=chunk) - The company faces **credit risks**, with countermeasures including strengthening customer admission management, dynamically monitoring credit business, timely activating response mechanisms, and using legal means when necessary[72](index=72&type=chunk) - The company faces **geopolitical risks**, with countermeasures including closely monitoring international developments, strengthening analysis of the political and economic situation in business locations, and adhering to a localization strategy[73](index=73&type=chunk) 2020 Capital Expenditure Plan (Unit: CNY 10,000) | Item | H1 2020 | 2020 Plan | | :--- | :--- | :--- | | Total | 142,238 | 990,430 | | Of which: Infrastructure Projects | 52,404 | 490,618 | | Sustaining Capital | 58,816 | 368,712 | | Safety Production Plan | 6,166 | 86,172 | | Technical Improvement Plan | 24,852 | 44,928 | - In H1 2020, coal exploration expenditure was **CNY 3.93 million**, and capital expenditure related to coal development and mining was approximately **CNY 980 million**[76](index=76&type=chunk) - The operating strategy for H2 includes seizing development opportunities, optimizing production organization, deepening lean management, optimizing product structure, and stimulating synergies to cope with the complex macroeconomic situation[77](index=77&type=chunk) - Due to exchange rate fluctuations, the Group generated a book foreign exchange gain of **CNY 120 million** during the reporting period[78](index=78&type=chunk) - The company and its subsidiaries in mainland China are subject to corporate income tax rates of 25% or 15%, while Yancoal Australia is subject to 30% and Yancoal International is subject to 16.5%[80](index=80&type=chunk) [Significant Events](index=25&type=section&id=Section%205%20Significant%20Events) This section covers key events in H1 2020, including shareholder meetings, litigation, related-party transactions, and the fulfillment of commitments [Summary of Shareholders' Meetings](index=25&type=section&id=I.%20Summary%20of%20Shareholders'%20Meetings) The company held its 2019 Annual General Meeting and the first A-share and H-share class meetings for 2020 on June 19, 2020 - The 2019 Annual General Meeting, the first A-share class meeting of 2020, and the first H-share class meeting of 2020 were held on June 19, 2020[81](index=81&type=chunk) [Profit Distribution or Capitalization of Capital Reserve Plan](index=25&type=section&id=II.%20Profit%20Distribution%20or%20Capitalization%20of%20Capital%20Reserve%20Plan) The company will not distribute an interim dividend for 2020, nor will it implement a capitalization of capital reserves - The company will not distribute an interim dividend for 2020 or implement a capitalization of capital reserves[82](index=82&type=chunk) [Fulfillment of Commitments](index=25&type=section&id=III.%20Fulfillment%20of%20Commitments) The controlling shareholder, Yankuang Group, has fulfilled its commitments regarding non-competition and financial business security, and its H-share purchase commitment is complete - The controlling shareholder Yankuang Group's commitment to avoid competition is long-term and being fulfilled normally[84](index=84&type=chunk) - Yankuang Group's commitment to ensure the independence, financial security, and non-appropriation of funds of Yanzhou Coal Mining is long-term and being fulfilled normally[84](index=84&type=chunk) - The commitment made by Yankuang Group and its parties acting in concert to increase their holdings of the company's H-shares has been fulfilled[84](index=84&type=chunk)[85](index=85&type=chunk) [Appointment and Dismissal of Accounting Firms](index=27&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company has appointed ShineWing Certified Public Accountants and ShineWing (HK) CPA Limited as its domestic and overseas auditors for 2020, with audit fees of CNY 8.85 million - Approved by the shareholders' meeting on June 19, 2020, ShineWing Certified Public Accountants (Special General Partnership) and ShineWing (HK) CPA Limited were appointed as the company's domestic and overseas auditors for 2020[86](index=86&type=chunk) - The audit service fee for 2020 is **CNY 8.85 million**, with CNY 6.85 million for domestic services (including an additional CNY 250,000 for internal control audit of big data projects) and CNY 2 million for overseas services[86](index=86&type=chunk) [Matters Related to Bankruptcy and Reorganization](index=28&type=section&id=V.%20Matters%20Related%20to%20Bankruptcy%20and%20Reorganization) There were no matters related to bankruptcy or reorganization during the reporting period [Major Litigation and Arbitration](index=28&type=section&id=VI.%20Major%20Litigation%20and%20Arbitration) The company is involved in several major legal cases, including disputes over share transfers, loan contracts, and sales agreements, with some proceedings still ongoing - Inner Mongolia Xinchangjiang Mining Investment Co, Ltd filed an arbitration claim with CIETAC for approximately **CNY 1.435 billion** for alleged breach of a share transfer agreement; the arbitration is ongoing[89](index=89&type=chunk) - In a contract dispute case initiated by China Huarong Asset Management, the company is named as a third party; the case is still in the first-instance trial process[89](index=89&type=chunk) - In a financial loan contract dispute involving Shandong Hengfeng Power Fuel Co, Ltd, with an amount of **CNY 99.119 million**, the company is being asked to assume joint liability; the case is in the second-instance retrial[90](index=90&type=chunk) - In a financial loan contract dispute involving Shandong Hengfeng Power Fuel Co, Ltd, with an amount of **CNY 59.669 million**, the company is being asked to assume payment obligations; the case is under retrial[91](index=91&type=chunk) - In a sales contract dispute with Xiamen C&D Inc, with an amount of **CNY 232.661 million**, the company is being asked to assume joint liability; the case is in the first-instance trial process[92](index=92&type=chunk) - In a bill dispute case where the company holds **CNY 272.1 million** in acceptance bills from Baota Finance Company, it has received 85 favorable first-instance judgments[93](index=93&type=chunk) - In bill dispute cases where holders are suing Yanzhou Coal Mining, with a total amount of **CNY 50.5 million**, the company has lost 22 cases and paid CNY 21.4 million[94](index=94&type=chunk) [Penalties and Rectifications Concerning the Company and Its Stakeholders](index=35&type=section&id=VII.%20Penalties%20and%20Rectifications%20Concerning%20the%20Company%20and%20Its%20Stakeholders) During the reporting period, neither the company nor its directors, supervisors, senior management, or controlling shareholder were subject to investigation or penalties - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not subject to investigation by competent authorities, compulsory measures by judicial or disciplinary departments, transfer to judicial organs, criminal prosecution, CSRC investigation, CSRC administrative penalties, securities market bans, public criticism, or other major administrative penalties or public reprimands from stock exchanges[97](index=97&type=chunk) [Statement on the Integrity of the Company and Its Controlling Shareholder](index=35&type=section&id=VIII.%20Statement%20on%20the%20Integrity%20of%20the%20Company%20and%20Its%20Controlling%20Shareholder) During the reporting period, the company and its controlling shareholder had no integrity issues such as unfulfilled court judgments or overdue debts - During the reporting period, the company and its controlling shareholder and actual controller had no instances of unfulfilled effective court judgments or large overdue debts[98](index=98&type=chunk) [Equity Incentive Plans and Their Impact](index=35&type=section&id=IX.%20Equity%20Incentive%20Plans%20and%20Their%20Impact) The company completed the grant registration for its 2018 A-share stock option incentive plan, awarding 46.32 million options that are not yet exercisable - The company's 2018 A-share stock option incentive plan completed its grant registration on February 21, 2019, with a total of **46.32 million stock options** granted, representing approximately 0.94% of the company's total share capital; the options are not yet in the exercise period[100](index=100&type=chunk)[102](index=102&type=chunk) - Yancoal Australia implemented an equity incentive plan in 2018 to attract and retain talent and align executive compensation with shareholder interests[103](index=103&type=chunk) [Major Related-Party Transactions](index=38&type=section&id=X.%20Major%20Related-Party%20Transactions) The company engaged in numerous related-party transactions involving its controlling shareholder and other affiliates, including the sale of goods, financial services, and significant acquisitions and disposals - In H1 2020, the Group's total sales of goods and services to its controlling shareholder amounted to **CNY 1.611 billion**, a decrease of 18.13% year-on-year; purchases from the controlling shareholder totaled **CNY 1.191 billion**, an increase of 72.93% year-on-year[107](index=107&type=chunk) - In H1 2020, the Group paid insurance premiums of **CNY 357 million** to its controlling shareholder[108](index=108&type=chunk) - As of June 30, 2020, Yankuang Group's comprehensive credit line balance at Yankuang Finance Company was **CNY 4.361 billion**[108](index=108&type=chunk) - In H1 2020, the Group's total sales of bulk commodities to Century Ruifeng amounted to **CNY 135.83 million**[111](index=111&type=chunk) - In H1 2020, the Group's purchases of equity coal from Glencore under the "HVO Sales Contract" amounted to approximately **USD 218 million**, and purchases under the "Coal Purchase Framework Agreement" amounted to approximately **USD 45 million**[111](index=111&type=chunk) - In H1 2020, the Group's coal sales to Sojitz Corporation and its subsidiaries amounted to approximately **USD 28 million**[112](index=112&type=chunk) - The company completed the acquisition of a 10% interest in the Moraben Coal Joint Venture from Sojitz Moraben Resources for a consideration of **AUD 300 million** through Moraben Company[113](index=113&type=chunk) - The company completed the sale of 100% equity in its wholly-owned subsidiaries, Yancoal International Trading Co, Ltd and Yancoal International (Singapore) Co, Ltd, to Yankuang Alumina (Hong Kong) Co, Ltd for a consideration of **CNY 150.67 million**[114](index=114&type=chunk)[115](index=115&type=chunk) Related-Party Receivables and Payables in H1 2020 (Unit: CNY billion) | Related Party | Relationship | Funds Provided to Related Party (Period-End Balance) | Funds Provided by Related Party (Period-End Balance) | | :--- | :--- | :--- | :--- | | Yankuang Group | Controlling Shareholder | 8.690 | 14.066 | | Century Ruifeng | Other Related Party | 0.002 | 0.143 | | Glencore and its subsidiaries | Other Related Party | 0 | 0 | | Sojitz Group and its subsidiaries | Other Related Party | 0 | 0 | | **Total** | | **8.692** | **14.209** | [Major Contracts and Their Performance](index=44&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) At the end of the reporting period, the company's total guarantees for its subsidiaries amounted to CNY 27.002 billion, representing 41.20% of its net assets Company Guarantee Summary for H1 2020 (Unit: CNY billion) | Indicator | Amount | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During the Period | 6.838 | | Total Outstanding Guarantees for Subsidiaries at Period-End (B) | 27.002 | | Total Guarantee Amount (A+B) | 27.002 | | Total Guarantee Amount as a Percentage of Net Assets (%) | 41.20 | | Guarantees for Entities with Asset-Liability Ratio Over 70% (D) | 12.092 | - The company completed the sale of a 20.89% stake in Haichang Company to Guan Tai Industrial for a consideration of **CNY 784 million**[124](index=124&type=chunk) - The company's plan to publicly list and sell a 50% stake in Saint-Fenelon was suspended as no bids were received[125](index=125&type=chunk) - The company's controlled subsidiary, New Margin Union Limited, has completed its liquidation and deregistration process[126](index=126&type=chunk) - The company plans to publicly list and sell 100% equity in Yijinhuoluo Qi Anhe Coal Co, Ltd, and the listing process is underway[127](index=127&type=chunk) - The company has transferred its 0.3425% equity in Shaanxi Future Energy Chemical Co, Ltd to Yulin City Yuyang District State-owned Assets Operation Co, Ltd for **CNY 18.495 million**, and the business registration has been completed[128](index=128&type=chunk) [Poverty Alleviation Work](index=46&type=section&id=XII.%20Poverty%20Alleviation%20Work) In H1 2020, the company actively fulfilled its social responsibilities by investing CNY 4.38 million in targeted poverty alleviation and participating in COVID-19 prevention efforts - In H1 2020, the Group invested a total of **CNY 4.38 million** in assistance funds, implementing a five-pronged poverty alleviation plan covering political, material, industrial, cultural, and educational support[130](index=130&type=chunk) - In terms of industrial poverty alleviation, over **CNY 1 million** was invested in building a medical device assembly workshop and creating industrial demonstration bases in assisted villages in Heze City; **CNY 500,000** was invested in a greenhouse edible fungus project in an assisted village in Yijinhuoluo Qi, Ordos City[131](index=131&type=chunk) Targeted Poverty Alleviation Investment in H1 2020 (Unit: CNY 10,000) | Indicator | Amount and Details | | :--- | :--- | | I. Overall Situation | 438 | | Of which: 1. Funds | 370 | | 2. In-kind Contributions (Value) | 68 | | II. Breakdown of Investment | | | 1. Industrial Development for Poverty Alleviation | | | 1.2 Number of Industrial Poverty Alleviation Projects | 5 | | 1.3 Investment in Industrial Poverty Alleviation Projects | 150 | | 2. Educational Poverty Alleviation | | | Of which: 2.1 Financial Aid for Impoverished Students | 100 | | 3. Other Projects | | | Of which: 3.1 Number of Projects | 8 | | 3.2 Investment Amount | 188 | - The company actively collaborated with villages and towns in impoverished areas to combat the COVID-19 pandemic, donating prevention and control equipment and materials, and urgently allocating coal to address local energy shortages[131](index=131&type=chunk) - In H2, the company will continue to focus on industrial development, public welfare, and cultural guidance to ensure the effectiveness of targeted poverty alleviation[137](index=137&type=chunk) [Convertible Corporate Bonds](index=48&type=section&id=XIII.%20Convertible%20Corporate%20Bonds) There were no convertible corporate bonds during the reporting period [Environmental Information](index=48&type=section&id=XIV.%20Environmental%20Information) The company had no major environmental pollution incidents during the period, strictly complied with environmental regulations, and ensured pollutant emissions met standards - During the reporting period, the Group had no major environmental pollution incidents and was not penalized by environmental regulatory authorities for major environmental violations[139](index=139&type=chunk) - The Group strictly complies with all environmental protection laws and regulations and actively manages pollutant emissions to ensure compliance[139](index=139&type=chunk) - All key pollutant-discharging units of the Group have obtained pollutant discharge permits and discharge pollutants in accordance with requirements, within the permitted total amount[139](index=139&type=chunk) - All of the Group's coal mines have complete mine water and domestic sewage treatment facilities, and coal yards and waste rock dumps have been fully enclosed; all power plant boilers have undergone ultra-low emission retrofits; chemical enterprises have built industrial wastewater treatment plants and are currently implementing VOCs control[142](index=142&type=chunk) - All of the Group's construction projects undergo environmental impact assessments before construction and apply for environmental acceptance as required, only starting production after obtaining approval[145](index=145&type=chunk) - All production units of the Group have prepared emergency response plans for environmental incidents, equipped necessary emergency facilities, and conduct regular emergency drills[146](index=146&type=chunk) - The Group's coal mines, power plants, and chemical enterprises have installed online monitoring facilities connected to government environmental monitoring platforms for real-time monitoring, and conduct regular self-monitoring[147](index=147&type=chunk) [Other Significant Matters](index=52&type=section&id=XV.%20Other%20Significant%20Matters) During the period, the company repurchased and cancelled 52.016 million H-shares, obtained shareholder approval for new H-share issuance and buyback mandates, and redeemed USD 500 million in perpetual securities - The company repurchased a total of **52.016 million H-shares** from the Hong Kong Stock Exchange between May 4, 2020, and May 22, 2020[153](index=153&type=chunk) - On April 13, 2020, Yancoal International Resources redeemed **USD 500 million** of its 5.75% senior guaranteed perpetual capital securities[154](index=154&type=chunk) - The shareholders' meeting on June 19, 2020, granted the Board a general mandate to issue up to 20% and repurchase up to 10% of the total issued H-shares, which had not been exercised as of the report disclosure date[155](index=155&type=chunk) - The company continuously improves its corporate governance structure, having revised the Articles of Association and Rules of Procedure for the General Meeting of Shareholders, and strictly complies with the Corporate Governance Code and the Model Code[158](index=158&type=chunk)[159](index=159&type=chunk) - The company strengthened communication with the capital market through various channels such as international and domestic roadshows, investment strategy conferences, site visits, and online platforms, meeting with over **400 analysts, fund managers, and investors**[160](index=160&type=chunk) [Changes in Ordinary Shares and Shareholder Information](index=56&type=section&id=Section%206%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section details changes in share capital and shareholder structure in H1 2020, including a reduction in total shares due to H-share buybacks [Changes in Share Capital](index=56&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital decreased by 52.016 million shares due to the repurchase and cancellation of H-shares Share Capital Changes in H1 2020 (Unit: shares) | | Pre-Change Quantity | % | Change (+, -) Other | Subtotal | Post-Change Quantity | % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 120,500 | 0.0025 | 0 | 0 | 120,500 | 0.0025 | | II. Unrestricted Circulating Shares | 4,911,895,500 | 99.9975 | -52,016,000 | -52,016,000 | 4,859,879,500 | 99.9975 | | 3. Overseas Listed Foreign Shares | 1,952,016,000 | 39.7396 | -52,016,000 | -52,016,000 | 1,900,000,000 | 39.0947 | | III. Total Shares | 4,912,016,000 | 100 | -52,016,000 | -52,016,000 | 4,860,000,000 | 100 | - From May 4 to May 22, 2020, the company repurchased **52,016,000 H-shares** on the Hong Kong Stock Exchange for a total of **HKD 310,188,380.00**, all of which have been cancelled[162](index=162&type=chunk) - As of the end of the reporting period, the company's total share capital will be reduced from 4,912,016,000 shares to **4,860,000,000 shares**[162](index=162&type=chunk) - As of the reporting date, the public float of the company exceeded 25% of the total share capital, in compliance with the Hong Kong Listing Rules[163](index=163&type=chunk) [Shareholder Information](index=57&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had 81,403 ordinary shareholders, with the controlling shareholder Yankuang Group and its concerted parties holding 56.01% of the shares - As of the end of the reporting period, the total number of ordinary shareholders was **81,403**[164](index=164&type=chunk) Top Ten Shareholders at Period-End (Unit: shares) | Shareholder Name | Period-End Holding | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yankuang Group Co, Ltd | 2,267,169,423 | 46.65 | State-owned legal person | | HKSCC Nominees Limited | 1,895,677,203 | 39.01 | Overseas legal person | | Beijing Chengtong Jinkong Investment Co, Ltd | 33,116,200 | 0.68 | State-owned legal person | | Hong Kong Securities Clearing Company Limited | 27,227,572 | 0.56 | Overseas legal person | | New China Life Insurance Co, Ltd - Dividend - Individual Dividend - 018L-FH002 Shanghai | 21,957,897 | 0.45 | Other | | Central Huijin Asset Management Ltd | 19,355,100 | 0.40 | State-owned legal person | | New China Life Insurance Co, Ltd - Dividend - Group Dividend - 018L-FH001 Shanghai | 10,710,153 | 0.22 | Other | | Bank of China - Fullgoal CSI SOE One Belt One Road ETF | 5,623,951 | 0.12 | Other | | National Social Security Fund Portfolio 412 | 5,097,107 | 0.10 | Other | | Shandong JINDUN Energy Co, Ltd | 4,843,685 | 0.10 | Domestic non-state-owned legal person | - As of June 30, 2020, Yankuang Group directly and indirectly held **56.01%** of the company's shares[168](index=168&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=59&type=section&id=III.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) There were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder or actual controller during the reporting period[171](index=171&type=chunk) [Directors, Supervisors, and Senior Management](index=60&type=section&id=Section%207%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section discloses changes in the holdings and composition of the company's board of directors, board of supervisors, and senior management during the period [Changes in Shareholdings](index=60&type=section&id=I.%20Changes%20in%20Shareholdings) As of the report disclosure date, current and former directors, supervisors, and senior management collectively held 80,000 domestic shares and 2.64 million unexercised stock options - As of the disclosure date of this report, current and former directors, supervisors, and senior management collectively held **80,000** of the company's domestic shares, representing approximately 0.0016% of the total share capital[175](index=175&type=chunk) Equity Incentive Holdings of Directors, Supervisors, and Senior Management (Unit: shares) | Name | Position | Stock Options Held at Beginning of Period | Stock Options Held at End of Period | | :--- | :--- | :--- | :--- | | Wu Xiangqian | Director | 320,000 | 320,000 | | Liu Jian | Director | 260,000 | 260,000 | | Zhao Qingchun | Director | 260,000 | 260,000 | | He Jing | Director | 260,000 | 260,000 | | Wang Ruolin | Director | 150,000 | 150,000 | | Qin Yanpo | Supervisor | 120,000 | 120,000 | | Su Li | Supervisor | 150,000 | 150,000 | | Xiao Yaomeng | Senior Management | 150,000 | 150,000 | | Gong Zhijie | Senior Management | 260,000 | 260,000 | | Wang Peng | Senior Management | 150,000 | 150,000 | | Li Wei | Senior Management | 150,000 | 150,000 | | Wang Chunyao | Senior Management | 150,000 | 150,000 | | Jin Qingbin | Senior Management | 260,000 | 260,000 | | **Total** | / | **2,640,000** | **2,640,000** | - The stock options granted under this equity incentive plan have not yet entered the exercise period[102](index=102&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=61&type=section&id=II.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company underwent a leadership transition with the election and appointment of a new Board of Directors, Board of Supervisors, and senior management team - Approved by the shareholders' meeting on June 19, 2020, Li Xiyong, Li Wei, Wu Xiangqian, Liu Jian, Zhao Qingchun, He Jing, Tian Hui, Zhu Limin, Cai Chang, and Pan Zhaoguo were elected as non-employee representative directors of the eighth Board of Directors, with Wang Ruolin as the employee representative director[180](index=180&type=chunk) - Mr Li Xiyong was elected as the Chairman of the eighth Board of Directors, and Mr Li Wei was elected as the Vice Chairman[180](index=180&type=chunk) - Approved by the shareholders' meeting on June 19, 2020, Gu Shisheng, Zhou Hong, Li Shipeng, and Qin Yanpo were elected as non-employee representative supervisors of the eighth Board of Supervisors, with Su Li and Zheng Kai as employee representative supervisors; Gu Shisheng was elected Chairman, and Zhou Hong was elected Vice Chairman[181](index=181&type=chunk)[182](index=182&type=chunk) - Approved by the 33rd meeting of the seventh Board of Directors on April 22, 2020, Mr Liu Jian was appointed as the General Manager, and Xiao Yaomeng, Zhang Chuanchang, and Wang Peng were appointed as Deputy General Managers; Wu Xiangqian, Zhao Honggang, and Wang Fuqi resigned from their respective positions[183](index=183&type=chunk) - Approved by the first meeting of the eighth Board of Directors on June 19, 2020, Mr Liu Jian was appointed as General Manager, Xiao Yaomeng, He Jing, Gong Zhijie, Zhang Chuanchang, Wang Peng, and Li Wei as Deputy General Managers, Zhao Qingchun as CFO, Wang Chunyao as Chief Engineer, Jin Qingbin as Board Secretary, and Zhang Lei as Investment Director[184](index=184&type=chunk) [Other Explanations](index=63&type=section&id=III.%20Other%20Explanations) Several changes were made to the positions held by current directors, supervisors, and senior management in subsidiary companies to meet the company's development needs Changes in Positions Held by Current Directors, Supervisors, and Senior Management in Subsidiaries | Position in Company | Name | Former Position | New Position | Change Date | | :--- | :--- | :--- | :--- | :--- | | Director, General Manager | Liu Jian | Executive Director of Yankuang Donghua Heavy Industry Co, Ltd; Chairman of Yanzhou Coal Mining Shanxi Neng Hua Co, Ltd | - | April 4, 2020 | | Deputy General Manager | Zhang Chuanchang | - | Chairman and General Manager of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd; Chairman of Inner Mongolia Haosheng Coal Industry Co, Ltd | May 4, 2020 | | Deputy General Manager | Wang Peng | Chairman and General Manager of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd; Chairman of Inner Mongolia Haosheng Coal Industry Co, Ltd | Executive Director of Yankuang Donghua Heavy Industry Co, Ltd | April 4, 2020 | | Investment Director | Zhang Lei | CFO of Yancoal Australia Limited | General Manager of Yancoal International (Holding) Co, Ltd | March 20, 2020; April 10, 2020 | | Supervisor | Qin Yanpo | Director, CFO, and General Counsel of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd | - | April 4, 2020 | [Corporate Bonds](index=65&type=section&id=Section%208%20Corporate%20Bonds) This section details the company's outstanding corporate bonds, use of proceeds, credit ratings, and repayment plans, confirming a stable AAA rating [Basic Information on Corporate Bonds](index=65&type=section&id=I.%20Basic%20Information%20on%20Corporate%20Bonds) The company has issued multiple tranches of corporate and perpetual bonds with a significant outstanding balance and interest rates ranging from 2.99% to 6.15%, with all interest payments made on schedule Basic Information on Corporate Bonds (Unit: CNY billion) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Outstanding Balance | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yanzhou Coal Mining 2012 Corporate Bond (Tranche 1) | 12 Yanzhou Coal 02 | 122168 | 2012/7/23 | 2022/7/23 | 4.0 | 4.95 | SSE | | Yanzhou Coal Mining 2012 Corporate Bond (Tranche 2) | 12 Yanzhou Coal 04 | 122272 | 2014/3/3 | 2024/3/3 | 3.05 | 6.15 | SSE | | Yanzhou Coal Mining 2017 Publicly Issued Perpetual Corporate Bond (Tranche 1) | 17 Yanzhou Coal Y1 | 143916 | 2017/8/17 | 2020/8/17 | 5.0 | 5.7 | SSE | | Yanzhou Coal Mining 2018 Publicly Issued Perpetual Corporate Bond (Tranche 1) | 18 Yanzhou Coal Y1 | 143959 | 2018/3/26 | 2021/3/26 | 5.0 | 6 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 01 | 163234 | 2020/3/12 | 2023/3/12 | 0.3 | 2.99 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 02 | 163235 | 2020/3/12 | 2025/3/12 | 2.7 | 3.43 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 03 | 163236 | 2020/3/12 | 2030/3/12 | 2.0 | 4.29 | SSE | - During the reporting period, the company made all interest payments on its bonds on schedule, with no defaults[189](index=189&type=chunk) [Contact Information for Bond Trustee and Credit Rating Agency](index=66&type=section&id=II.%20Contact%20Information%20for%20Bond%20Trustee%20and%20Credit%20Rating%20Agency) The trustees for the company's various bonds include BOC International, Ping An Securities, and Haitong Securities, while credit rating agencies include Dagong Global, China Chengxin, and Golden Credit Rating - The corporate bond trustees include BOC International (China) Limited, Ping An Securities Co, Ltd, and Haitong Securities Co, Ltd[190](index=190&type=chunk) - The credit rating agencies include Dagong Global Credit Rating Co, Ltd, China Chengxin Securities Rating Co, Ltd, and Golden Credit Rating International Co, Ltd[190](index=190&type=chunk) [Use of Proceeds from Corporate Bonds](index=66&type=section&id=III.%20Use%20of%20Proceeds%20from%20Corporate%20Bonds) The total proceeds of CNY 22.05 billion from various bond issuances were used to supplement working capital and repay maturing debts, consistent with the offering circulars - The **CNY 7.05 billion** raised from 12 Yanzhou Coal 02 and 12 Yanzhou Coal 04 was fully used to supplement working capital[192](index=192&type=chunk) - The **CNY 10 billion** raised from 17 Yanzhou Coal Y1 and 18 Yanzhou Coal Y1 was used to repay maturing debts and supplement working capital[192](index=192&type=chunk) - The **CNY 5 billion** raised from 20 Yanzhou Coal 01, 02, and 03 was used to repay interest-bearing debt and supplement working capital[192](index=192&type=chunk) [Corporate Bond Credit Ratings](index=67&type=section&id=IV.%20Corporate%20Bond%20Credit%20Ratings) Dagong Global, China Chengxin, and Golden Credit Rating have all maintained the company's long-term corporate credit rating at AAA with a stable outlook, and all bonds are rated AAA - Dagong Global, China Chengxin, and Golden Credit Rating have all maintained the company's long-term corporate credit rating at **AAA** with a stable outlook[193](index=193&type=chunk) - The credit ratings for all corporate bonds have been maintained at **AAA**, indicating an extremely low risk of default[193](index=193&type=chunk) [Credit Enhancement, Repayment Plan, and Other Related Matters](index=67&type=section&id=V.%20Credit%20Enhancement%2C%20Repayment%20Plan%2C%20and%20Other%20Related%20Matters) The credit enhancement mechanisms and repayment plans for the company's bonds remained unchanged, with Yankuang Group providing guarantees for certain bonds - During the reporting period, there were no changes to the credit enhancement mechanisms, repayment plans, or other debt service guarantee measures for the corporate bonds[194](index=194&type=chunk) - Yankuang Group provides a full, unconditional, and irrevocable joint and several liability guarantee for the 12 Yanzhou Coal 02 and 12 Yanzhou Coal 04 bonds[194](index=194&type=chunk) - The company has established a detailed repayment plan, specifying the interest payment dates and maturity dates for each bond[197](index=197&type=chunk) - The debt service guarantee plan includes establishing a dedicated repayment working group, earmarking funds, fully utilizing the role of the bond trustee, formulating rules for bondholder meetings, and ensuring strict information disclosure[199](index=199&type=chunk) [Bondholder Meetings](index=69&type=section&id=VI.%20Bondholder%20Meetings) No bondholder meetings were held during the reporting period - No bondholder meetings were held during the reporting period[200](index=200&type=chunk) [Performance of Bond Trustees](index=69&type=section&id=VII.%20Performance%20of%20Bond%20Trustees) The trustees for the company's various bonds have fulfilled their duties by disclosing trustee administration reports as required - BOC International, Ping An Securities, and Haitong Securities, as trustees for the company's various bonds, have all disclosed their trustee administration reports as required[200](index=200&type=chunk) [Key Accounting Data and Financial Indicators](index=69&type=section&id=VIII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) At the end of the reporting period, the company's liquidity ratios remained stable, while the asset-liability ratio increased slightly, and interest coverage ratios were strong Key Accounting Data and Financial Indicators for Corporate Bonds in H1 2020 | Key Indicator | End of Current Period / Current Period (Jan-Jun) | End of Prior Year / Prior Year Period | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 0.87 | 0.87 | 0 | | Quick Ratio | 0.69 | 0.72 | -4.17 | | Asset-Liability Ratio (%) | 61.90 | 59.81 | Increase of 2.09 percentage points | | Loan Repayment Rate (%) | 100 | 100 | 0 | | EBITDA Interest Coverage Ratio | 9.78 | 8.89 | 10.01 | | Interest Payment Rate (%) | 100 | 100 | 0 | [Explanation of Overdue Debt](index=70&type=section&id=IX.%20Explanation%20of%20Overdue%20Debt) The company had no overdue debt during the reporting period - The company had no overdue debt during the reporting period[203](index=203&type=chunk) [Payment Status of Other Bonds and Debt Financing Instruments](index=70&type=section&id=X.%20Payment%20Status%20of%20Other%20Bonds%20and%20Debt%20Financing%20Instruments) The company's USD bonds, perpetual bonds, medium-term notes, and ultra-short-term financing instruments were all paid on time without any defaults - The company's 10-year USD bonds issued in 2012, USD perpetual bonds issued in 2017, 3-year USD bonds issued in 2018, medium-term notes issued in 2018, and ultra-short-term financing instruments issued this year have all had their principal and interest paid on time as agreed, with no defaults[203](index=203&type=chunk) [Bank Credit Facilities](index=70&type=section&id=XI.%20Bank%20Credit%20Facilities) As of June 30, 2020, the Group had total bank credit facilities of CNY 139.901 billion, with CNY 87.945 billion unused, and all bank loans were repaid on schedule - As of June 30, 2020, the Group's total bank credit facilities amounted to **CNY 139.901 billion**, of which **CNY 51.956 billion** was utilized, leaving an unused balance of **CNY 87.945 billion**[204](index=204&type=chunk) - In H1 2020, the Group repaid bank loan principal and interest of **CNY 8.222 billion** on schedule, with no extensions, waivers, or defaults[204](index=204&type=chunk) [Execution of Covenants in Bond Prospectuses](index=70&type=section&id=XII.%20Execution%20of%20Covenants%20in%20Bond%20Prospectuses) The company has strictly adhered to all covenants and commitments in its bond prospectuses, with no violations or events affecting investor fund security - The company has strictly fulfilled the relevant covenants and commitments in its bond prospectuses, with no defaults or events that could affect the security of investor funds[205](index=205&type=chunk) [Impact of Significant Events on Operations and Solvency](index=70&type=section&id=XIII.%20Impact%20of%20Significant%20Events%20on%20Operations%20and%20Solvency) The significant events that occurred did not materially affect the company's operations or solvency, as its business remains stable with accessible financing channels - The significant events that occurred did not have a material impact on the company's operating conditions; the company's operations are stable, financing channels are accessible, and there is no impact on its ability to repay investors[206](index=206&type=chunk) [Financial Report](index=71&type=section&id=Section%209%20Financial%20Report) This section contains the unaudited consolidated and parent company financial statements for the half-year ended June 30, 2020, along with detailed notes [Audit Report](index=71&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[3](index=3&type=chunk) [Financial Statements](index=71&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the half-year of 2020, presenting a comprehensive view of its financial position and performance Key Data from Consolidated Balance Sheet (Unit: CNY '000) | Item | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 218,370,843 | 207,821,363 | | Total Liabilities | 135,165,811 | 124,297,241 | | Equity Attributable to Parent Company Owners | 65,533,028 | 63,291,840 | | Minority Interests | 17,672,004 | 20,232,282 | | Total Equity | 83,205,032 | 83,524,122 | Key Data from Consolidated Income Statement (Unit: CNY '000) | Item | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Total Operating Revenue | 109,613,418 | 105,975,591 | | Total Operating Costs | 106,144,317 | 98,638,102 | | Operating Profit | 7,167,549 | 8,406,762 | | Total Profit | 7,750,542 | 8,552,506 | | Net Profit | 6,381,252 | 7,040,030 | | Net Profit Attributable to Parent Company Shareholders | 4,599,867 | 5,360,854 | | Minority Interest Income/Loss | 1,485,635 | 1,380,023 | | Total Comprehensive Income | 6,240,783 | 7,388,306 | Key Data from Consolidated Cash Flow Statement (Unit: CNY '000) | Item | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,556,885 | 11,920,967 | | Net Cash Flow from Investing Activities | -3,733,998 | -2,021,390 | | Net Cash Flow from Financing Activities | 599 | -14,328,868 | | Net Increase in Cash and Cash Equivalents | -5,105,275 | -4,595,510 | [Company Basic Information](index=91&type=section&id=III.%20Company%20Basic%20Information) Yanzhou Coal Mining Company Limited was established in September 1997 in Zoucheng City, Shandong Province, with its main business in coal mining, sales, and related activities - Yanzhou Coal Mining Company Limited was established in September 1997, with its registered office and headquarters in Zoucheng City, Shandong Province[236](index=236&type=chunk) - The company's business scope primarily includes coal mining and sales, investment with own funds and investment consulting, freight transport on its own railway lines, coal chemical business, and electromechanical equipment manufacturing[237](index=237&type=chunk) - As of June 30, 2020, the company's total share capital was **CNY 4.86 billion**[236](index=236&type=chunk) [Basis of Preparation of Financial Statements](index=92&type=section&id=IV.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The Group's financial statements are prepared on a going concern basis in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance - The Group's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises and related regulations issued by the Ministry of Finance, based on actual transactions and events[239](index=239&type=chunk) - The Group has a history of recent profitable operations and financial resources to support its ability to continue as a going concern for the next 12 months from the end of the reporting period, with no significant events affecting this ability[240](index=240&type=chunk) [Significant Accounting Policies and Estimates](index=92&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the key accounting policies and estimates used in preparing the financial statements, covering areas such as business combinations, financial instruments, and revenue recognition - In business combinations under common control, the Group measures the acquired assets and li

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].