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

Financial Performance - Net profit attributable to shareholders of the listed company increased by 13.36% to CNY 5,504,014 compared to the same period last year[10]. - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 34.88% to CNY 5,885,151 compared to the same period last year[10]. - Basic earnings per share for the reporting period was CNY 1.1205, an increase of 13.37% year-on-year[10]. - Operating revenue for the first three quarters was CNY 119,190,485, a slight decrease of 0.21% compared to the same period last year[10]. - Net profit for Q1 2018 reached 146 million, up 31.53% from 111 million in Q1 2017[38]. - The company's operating revenue for Q3 2018 was CNY 5,953,536,000, an increase of 4.4% compared to CNY 5,701,415,000 in Q3 2017[81]. - The net profit attributable to the parent company for Q3 2018 was CNY 723,000,000, a decrease of 48.9% from CNY 1,414,234,000 in Q3 2017[82]. - The company's operating profit for the first nine months of 2018 was CNY 4,278,939,000, a decrease of 28.6% compared to CNY 6,002,174,000 in the same period of 2017[81]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 194,243,624, a decrease of 0.33% compared to the end of the previous year[10]. - Current assets totaled 64,649,315 thousand RMB, down from 66,138,871 thousand RMB at the beginning of the year[66]. - Total liabilities were 112,364,047 thousand RMB, compared to 117,605,925 thousand RMB at the beginning of the year[68]. - The company's cash and cash equivalents were 27,720,563 thousand RMB, down from 28,568,253 thousand RMB[66]. - As of September 30, 2018, total assets amounted to 194,243,624 thousand RMB, a slight decrease from 194,887,291 thousand RMB at the beginning of the year[66][68]. Production and Sales - The company's raw coal production for Q3 2018 was 24,877 thousand tons, an increase of 18.11% compared to 21,062 thousand tons in Q3 2017[20]. - The total sales volume of commercial coal in Q3 2018 reached 27,185 thousand tons, reflecting a growth of 20.37% from 22,584 thousand tons in Q3 2017[20]. - The company reported a total of 82,689 thousand tons of commercial coal sales for the first three quarters of 2018, up 28.64% from 64,281 thousand tons in the same period of 2017[20]. - The total production of raw coal for the first three quarters of 2018 was 78,243 thousand tons, representing a year-on-year increase of 36.16%[21]. - In the first three quarters of 2018, the company sold 82.69 million tons of coal, an increase of 28.6% or 18.41 million tons year-on-year[24]. Cash Flow - Net cash flow from operating activities for the first three quarters was CNY 12,653,079, an increase of 123.03% year-on-year[10]. - Operating cash flow for the first nine months of 2018 was CNY 21,090,279, an increase of 17.5% compared to CNY 18,001,295 in the same period last year[88]. - Cash received from sales of goods and services was CNY 20,726,025, an increase of 17.9% from CNY 17,622,203 year-over-year[88]. - The total cash inflow from financing activities was CNY 27,941,487, a decrease of 22.2% from CNY 35,915,940 in the previous year[89]. Shareholder Information - The total number of shareholders as of the end of the reporting period was 76,629[12]. - The largest shareholder, Yanzhou Coal Mining Group Co., Ltd., held 46.16% of the shares[12]. - As of September 30, 2018, Yancoal Group held a total of 2,267,169,423 A shares, representing 46.16% of the company's total issued share capital[17]. Investments and Acquisitions - The company plans to acquire a 49% stake in Yancoal Blue Sky Clean Energy Co., Ltd. for 21.29 million, marking a strategic investment in clean energy[44]. - The company acquired land use rights for Yancoal Australia from Yancoal Coal Australia Limited for RMB 21.47 million, covering an area of 91,382.6 square meters, with a usage period until February 20, 2054[46]. - The company plans to raise up to RMB 6.35 billion through a non-public issuance of A shares to acquire 100% equity of United Coal[55]. Research and Development - Research and development expenses for the first nine months were CNY 58,465 thousand, slightly down from CNY 61,355 thousand, indicating a decrease of about 4.7%[75]. - Research and development expenses for Q3 2018 were CNY 14,500,000, slightly up from CNY 13,712,000 in Q3 2017[81]. Financial Ratios and Returns - The weighted average return on net assets decreased by 0.74 percentage points to 9.51%[10]. - The average coal sales cost per ton for the company was 247.01 yuan, up 5.22% year-on-year[26].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 76,308,193, a decrease of 5.52% compared to CNY 80,769,522 in the same period last year[22]. - Net profit attributable to shareholders increased by 34.09% to CNY 4,341,279 from CNY 3,237,574 in the previous year[22]. - The net cash flow from operating activities surged by 359.50% to CNY 9,563,372 compared to CNY 2,081,278 in the same period last year[22]. - The company's total assets at the end of the reporting period were CNY 193,906,055, a slight decrease of 0.50% from CNY 194,887,291 at the end of the previous year[22]. - Basic earnings per share rose by 34.09% to CNY 0.8838 from CNY 0.6591 in the same period last year[23]. - The weighted average return on equity increased to 7.64%, up by 0.25 percentage points from 7.39% in the previous year[23]. - The company reported a total non-recurring loss of CNY 192,796, primarily due to various non-operating income and expenses[30]. - The net assets attributable to shareholders increased by 4.44% to CNY 57,376,953 from CNY 54,939,172 at the end of the previous year[22]. Operational Highlights - The company produced 53,366 thousand tons of raw coal in the first half of 2018, an increase of 16,963 thousand tons or 46.6% year-on-year[38]. - The company achieved a total coal sales volume of 55,504 thousand tons, up by 13,807 thousand tons or 33.11% compared to the same period last year[38]. - The sales revenue from coal business reached 29,931 million RMB, an increase of 8,812 million RMB or 41.7% year-on-year[42]. - The methanol production was 795 thousand tons, reflecting an increase of 61 thousand tons or 8.31% year-on-year[38]. - The company generated 140,908 million kWh of electricity, which is an increase of 19,592 million kWh or 16.15% year-on-year[38]. - The company’s coal production in Australia increased significantly by 13,718 thousand tons or 173.65% year-on-year[39]. - The company’s electricity sales volume was 86,155 million kWh, an increase of 13,876 million kWh or 19.20% year-on-year[38]. Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and profitability[32]. - The company plans to continue expanding its coal and chemical business while optimizing its financing structure[36]. - The company plans to enhance its marketing strategy by integrating "big marketing, big trade, and big logistics" to improve market competitiveness and efficiency[85]. - The company is committed to enhancing its equipment manufacturing capabilities through a three-year upgrade program to improve profitability[84]. - The company is pursuing strategic measures to ensure the successful completion of its annual operational goals despite external economic challenges[84]. Legal and Compliance Issues - The company is currently involved in significant litigation, including a financial loan dispute with Weifang Commercial Bank, claiming RMB 99.119 million in principal and interest[100]. - The company is also facing a factoring contract dispute with Zhonghui Xintong, with a claim for RMB 159.977 million in financing and interest[100]. - The company is engaged in multiple legal proceedings, which may impact its current and future profits, but the outcomes remain uncertain[101]. - The company is actively seeking resolutions for ongoing legal matters and has reported to the public security authorities regarding potential fraud[102]. - The company has not disclosed any significant updates on litigation or arbitration matters in its interim announcements[103]. Shareholder Relations - The controlling shareholder, Yanzhou Coal Group, holds a 49.82% stake in the company as of the report date[10]. - The company has established various agreements with its controlling shareholder, including supply and service agreements, with transaction limits set for 2018 to 2020[116]. - The total number of ordinary shareholders as of the end of the reporting period is 72,951[188]. - The company has conducted over 650 meetings with analysts, fund managers, and investors during the reporting period to enhance investor relations[179]. - The report does not indicate any changes in the controlling shareholder or actual controller[197]. Environmental Compliance - The company has not experienced any major environmental pollution incidents and has complied with all relevant environmental regulations during the reporting period[153]. - The company has implemented effective pollution control measures, achieving compliance with emission standards for major pollutants such as COD, ammonia nitrogen, and PM10[153]. - The company has established emergency response plans for environmental incidents, which have been evaluated and approved by government environmental authorities[161]. - The company has reported that all pollution control facilities are operating normally across its various production units[158]. - The company is committed to adhering to the pollution discharge standards set by relevant authorities, including the GB20426-2006 and DB37/599-2006 standards[154]. Financial Management - The company has established a robust corporate governance structure, ensuring compliance with legal and regulatory requirements[175]. - The company has implemented a salary policy for directors and senior management, combining a fixed annual salary and performance-based incentives[171]. - The company has a performance-based salary system for other employees, linking compensation to overall economic performance and individual achievements[171]. - The company has not faced any investigations or penalties from regulatory authorities during the reporting period[112]. - The company has not reported any major related party transactions outside of those already disclosed[129].

Financial Performance - Net profit attributable to shareholders increased by 25.49% to CNY 2,227,536,000 year-on-year[7] - Basic earnings per share rose by 25.48% to CNY 0.4535[8] - The weighted average return on equity increased by 0.06 percentage points to 4.01%[7] - Total operating revenue decreased to ¥32,333,709 from ¥39,812,986, representing a decline of approximately 18.6% year-over-year[61] - Operating profit increased to ¥3,532,955 from ¥2,383,398, marking an increase of approximately 48.0% year-over-year[62] - Net profit rose to ¥2,747,026 compared to ¥2,030,798, reflecting an increase of around 35.3% year-over-year[62] - Total comprehensive income decreased to ¥635,282 from ¥4,143,545, a decline of approximately 84.7% year-over-year[63] Cash Flow - Net cash flow from operating activities was CNY 3,270,162,000, a significant recovery from a loss of CNY 373,786,000 in the previous year[7] - Cash inflow from operating activities decreased to CNY 39,614,296 from CNY 44,724,234, a decline of approximately 11.4% year-over-year[68] - Cash outflow from investing activities increased significantly to CNY 5,450,236 from CNY 2,921,145, resulting in a net cash flow from investing activities of -CNY 4,468,658[69] - Net cash flow from financing activities increased by 573.40%, amounting to 7,081,562 thousand yuan, driven by a 42.306 million yuan increase in cash received from borrowings[32] - The ending cash and cash equivalents balance increased to CNY 26,757,171 from CNY 15,530,077, reflecting a growth of approximately 72%[69] Assets and Liabilities - Total assets increased by 2.29% to CNY 199,353,174,000 compared to the end of the previous year[7] - Current assets rose to CNY 70,571,599, up from CNY 66,138,871, marking an increase of about 6.9%[54] - Total liabilities decreased to CNY 115,639,233 from CNY 117,605,925, a reduction of about 1.7%[56] - Current liabilities decreased to CNY 58,606,607 from CNY 63,167,502, a decline of approximately 7.9%[55] - Shareholders' equity rose to CNY 83,713,941 from CNY 77,281,366, reflecting an increase of approximately 8.4%[56] Production and Sales - In Q1 2018, the company produced 26,133 thousand tons of raw coal, a 39.67% increase from 18,710 thousand tons in Q1 2017[15] - The company sold 27,405 thousand tons of commercial coal in Q1 2018, up 33.56% from 20,519 thousand tons in Q1 2017[15] - The company’s commercial coal production in Q1 2018 was 24,293 thousand tons, a 34.74% increase from 18,030 thousand tons in Q1 2017[15] - The average selling price of commercial coal in Q1 2018 was 549.73 yuan/ton, compared to 510.46 yuan/ton in Q1 2017[20] - The company’s total coal production from its Australian operations reached 8,329 thousand tons in Q1 2018, a significant increase of 155.73% from 3,257 thousand tons in Q1 2017[18] Investments and Acquisitions - The company completed the acquisition of 65% of Yancoal Financial Company, impacting financial statements retrospectively[8] - The company exercised an option to acquire a 28.898% stake in the Walkworth joint venture for 230 million USD on March 7, 2018[44] - The company subscribed to 420 million H-shares of Zheshang Bank at a price of HKD 4.80 per share, increasing its stake from approximately 2.86% to about 4.99% post-transaction[49] Legal and Compliance - The company is currently involved in a litigation case against Jinan Railway Coal Transportation and Trade Group, claiming 80 million yuan for unpaid coal supplies[34] - A new arbitration case has been initiated by Inner Mongolia Xin Changjiang Mining Investment Co., claiming 748.5 million yuan for breach of a share transfer agreement[40] - The company has committed to avoid any major violations related to real estate operations during the self-inspection period from 2015 to 2017, ensuring compliance with regulatory requirements[46] Shareholder Information - The total number of shareholders reached 73,170 by the end of the reporting period[10] - The largest shareholder, Yancoal Group, holds 46.74% of the shares, totaling 2,295,662,151 shares[10]

Financial Performance - The company's operating revenue for 2017 was CNY 151.23 billion, an increase of 47.85% compared to CNY 102.28 billion in 2016[23]. - The net profit attributable to shareholders for 2017 reached CNY 6.77 billion, representing a significant increase of 213.19% from CNY 2.16 billion in 2016[23]. - The net cash flow from operating activities was CNY 16.06 billion, up 157.61% from CNY 6.24 billion in the previous year[23]. - The total assets at the end of 2017 amounted to CNY 194.89 billion, a growth of 27.34% compared to CNY 153.05 billion at the end of 2016[24]. - The company's total liabilities increased by 16.67% to CNY 117.61 billion in 2017 from CNY 100.81 billion in 2016[24]. - Basic earnings per share for 2017 were CNY 1.3784, a 213.20% increase from CNY 0.4401 in 2016[25]. - The net profit under international accounting standards for 2017 was CNY 7.36 billion, compared to CNY 1.65 billion in the previous year[28]. - The company's net assets attributable to shareholders at the end of 2017 were CNY 54.94 billion, an increase of 27.59% from CNY 43.06 billion in 2016[24]. - The total operating revenue for 2017 reached 151.2278 billion yuan, with a net profit attributable to shareholders of 6.7706 billion yuan, marking historical highs for coal production, revenue, and total assets[46]. Dividends and Shareholder Returns - The board of directors proposed a cash dividend of RMB 4.80 per 10 shares based on a total share capital of 491,201.6 million shares as of December 31, 2017[5]. - The company proposed a cash dividend of RMB 2.35778 billion for the year 2017, equivalent to RMB 0.48 per share (tax included)[153]. - The cash dividend distribution plan will be submitted for approval at the 2017 annual general meeting and, if approved, will be distributed within two months[153]. - The company's net profit attributable to ordinary shareholders for 2017 was RMB 6.770618 billion[153]. - The retained earnings at the beginning of the year were RMB 31.614494 billion, with an ending balance of RMB 37.748767 billion after accounting for the dividend[153]. - The cash dividends distributed in 2016 amounted to RMB 589.442 million, which represented 35.73% of the net profit attributable to ordinary shareholders for that year[149]. - The company has a policy to distribute approximately 35% of the net profit after deducting statutory reserves as cash dividends when conditions permit[147]. Acquisitions and Investments - The company completed the acquisition of 65% of Yancoal Financial Company during 2017, which is classified as a business combination under common control[26]. - The company completed the acquisition of 100% equity in United Coal on September 1, 2017, significantly increasing its overseas assets to 795.157 billion RMB, accounting for 40.8% of total assets[43]. - The company completed the acquisition of Coal & Allied Industries Limited for USD 2.69 billion, enhancing Yancoal's profitability and market position[6]. - The company invested a total of 20.3273 billion yuan in external equity investments, marking an increase of 138.0% compared to the previous year[112]. - The company has classified 3,123,513 as held-for-sale assets following an agreement with Glencore Mining for a 16.6% stake in the HVO joint venture[100]. Legal Matters and Disputes - The company has faced significant litigation and arbitration matters during the year[170]. - The company was ordered to pay a total of RMB 316.919 million related to a lawsuit involving China Minsheng Bank, which included principal, interest, and litigation costs[171]. - The company is actively pursuing recovery measures to minimize losses from the aforementioned lawsuits[172]. - The company is currently involved in a lawsuit with Jinan Railway Coal Transportation Group, claiming a repayment of RMB 19.9498 million, with the first instance ruling against the company[173]. - The company is facing a claim from Luxing Real Estate for RMB 99.96 million in receivables, with the company denying any liability and alleging forgery of its seal[174]. - The company is involved in a lawsuit against Rizhao Port Storage for RMB 27.83 million related to a coal sales contract, with the case under trial[179]. - The company is currently unable to predict the impact of these lawsuits on its profits for the current and future periods[177]. Operational Highlights - The company achieved a historical high in coal production and sales volume in 2017, driven by the gradual release of new mining capacity in the Shaanxi and Inner Mongolia bases[44]. - In 2017, the company produced 85.62 million tons of raw coal, an increase of 28.3% year-over-year, and sold 96.8 million tons of commercial coal, up 29.1% from the previous year[55]. - The company's coal business remains a major revenue driver, with products primarily sold in East, North, and South China, as well as Japan, South Korea, and Australia[41]. - The company achieved a 7.01% increase in railway freight volume, transporting 14.385 million tons in 2017[55]. - The total coal sales volume for the group in 2017 was 96,802 thousand tons, an increase of 21,833 thousand tons or 29.1% year-on-year[61]. Governance and Compliance - The company reported a standard unqualified audit opinion from the accounting firm Xin Yong Zhong He[8]. - The company emphasizes the importance of accurate financial reporting, with key executives affirming the completeness and accuracy of the annual report[8]. - The company has a strong governance structure with all board members present at the board meeting for the annual report approval[8]. - The company operates in compliance with Chinese accounting standards and international financial reporting standards[12]. - The independent non-executive directors confirmed that the related party transactions were fair and reasonable, aligning with the overall interests of the shareholders[194]. Risk Management - The company has disclosed major risks and countermeasures in the annual report, which investors should pay attention to[7]. - The company is focused on enhancing its financial services to support its core business, aiming for a multi-layered financial industry system[51]. - The company plans to implement a strategy of "three reductions and three improvements" to enhance operational efficiency and cost control across all business segments[52].

Financial Performance - Yanzhou Coal Industry Co., Ltd. expects a net profit increase of 3.99 to 5.07 billion yuan for 2017, representing a year-on-year growth of approximately 193% to 245%[3] - The net profit attributable to shareholders, excluding non-recurring gains and losses, is projected to increase by 3.37 to 4.45 billion yuan, indicating a year-on-year increase of about 226% to 299%[3] - The previous year's net profit attributable to shareholders was 2.0646 billion yuan, with a net profit of 1.4895 billion yuan after excluding non-recurring gains and losses[5] Factors Influencing Profit - The significant profit increase is primarily due to higher coal prices and increased sales volume from new mines and acquisitions[6] Financial Data Adjustments - The company acquired equity in Yancoal Group Financial Co., Ltd., leading to adjustments in the previous year's financial data[3] Earnings Forecast - The earnings forecast has not been audited by registered accountants[4] - There are no major uncertainties affecting the accuracy of the earnings forecast[7] - The forecast data is preliminary and the final figures will be disclosed in the official 2017 annual report[8] Investment Risks - The company emphasizes the importance of recognizing investment risks associated with the forecast[8] - The financial data presented is based on Chinese accounting standards, and investors should be aware of the differences in financial data preparation[8]

Financial Performance - Operating revenue for the first nine months reached CNY 119,218,615,000, an increase of 84.04% year-on-year[11] - Net profit attributable to shareholders of the listed company surged by 369.88% to CNY 4,783,394,000 for the first nine months[11] - Basic earnings per share rose by 369.98% to CNY 0.9738[12] - The company reported a net profit excluding non-recurring gains and losses of CNY 4,390,918,000, up 776.80% year-on-year[11] - The company reported a significant increase in other current assets by 84.87% to CNY 5,492,603,000, due to the planned sale of joint venture interests[37] - The company achieved a total comprehensive income of CNY 4,909,568 thousand for the first nine months of 2017, compared to CNY 1,971,329 thousand in the same period of 2016, marking a 149% increase[70] Cash Flow - The net cash flow from operating activities increased by 280.10% to CNY 8,194,443,000 compared to the same period last year[11] - The company's cash and cash equivalents increased by 59.56% to CNY 31,932,390,000 as of September 30, 2017, compared to CNY 20,012,569,000 at the end of 2016[37] - The company's net increase in cash and cash equivalents reached 8,869,795 thousand yuan, reversing a previous deficit[47] - The ending cash and cash equivalents balance for Q3 2017 was 16,943,217 thousand RMB, up from 10,372,600 thousand RMB in the same period last year, reflecting a growth of 63%[78] - Total cash inflow from operating activities was 18,001,295 thousand RMB, compared to 13,378,078 thousand RMB in the previous year, representing an increase of 35%[77] Assets and Liabilities - Total assets increased by 29.64% to CNY 188,787,527,000 compared to the end of the previous year[11] - Current assets reached CNY 62.13 billion, up from CNY 42.22 billion at the start of the year, indicating a growth of approximately 47.2%[60] - Non-current assets totaled CNY 126.66 billion, increasing from CNY 103.40 billion, reflecting a growth of about 22.5%[60] - Total liabilities increased to CNY 112.82 billion from CNY 94.57 billion, representing a rise of approximately 19.3%[61] - The company's equity attributable to shareholders rose to CNY 53.78 billion from CNY 42.02 billion, an increase of about 27.8%[61] Production and Sales - The company produced 21,062 thousand tons of raw coal in Q3 2017, a 32.03% increase from 15,952 thousand tons in Q3 2016[21] - The total sales volume of commercial coal reached 22,584 thousand tons in Q3 2017, representing a 24.50% increase compared to 18,140 thousand tons in Q3 2016[21] - The company’s total coal production for the first three quarters of 2017 was 57,464 thousand tons, a 20.87% increase from 47,543 thousand tons in the same period of 2016[21] - The company’s total sales volume of commercial coal for the first three quarters of 2017 was 64,281 thousand tons, a 26.80% increase from 50,696 thousand tons in the same period of 2016[21] Shareholder Information - The total number of shareholders reached 56,494 by the end of the reporting period[15] - The largest shareholder, Yanzhou Coal Mining Group Co., Ltd., holds 2,600,000,000 shares, accounting for 52.93% of total shares[15] Investments and Acquisitions - The company is in the process of acquiring a 28.898% stake in the Walkworth joint venture for 230 million USD, with the option valid until December 31, 2018[50][51] - Yancoal Australia acquired 100% equity of United Coal from Rio Tinto for $2.45 billion, with an additional $240 million in non-contingent royalties to be paid over five years[53] Operational Efficiency - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[66] - The company’s electricity generation decreased to 75,747 thousand kWh in Q3 2017, down 10.42% from 84,556 thousand kWh in Q3 2016[21]

Financial Performance - For the first three quarters of 2017, the net profit attributable to shareholders is expected to increase by approximately 370% compared to the same period last year[2] - The net profit for the same period last year was 1.018 billion CNY[3] - The earnings per share for the same period last year was 0.2072 CNY[3] Factors Influencing Performance - The significant increase in performance is primarily due to higher coal prices and increased sales volume from newly operational mines[4] - The company benefits from the implementation of national supply-side structural reforms and capacity reduction policies in the coal industry[4] Forecast and Risks - The forecast data is preliminary and subject to final confirmation in the official Q3 2017 report[6] - Investors are advised to pay attention to investment risks associated with the preliminary data[6]

Financial Performance - The company's operating revenue for the first half of the year reached 80,624,244 thousand RMB, a 227.27% increase compared to the same period last year[20]. - Net profit attributable to shareholders was 3,189,144 thousand RMB, reflecting a 438.32% increase year-on-year[20]. - Basic earnings per share increased to 0.6493 RMB, up 438.84% from 0.1205 RMB in the previous year[20]. - The weighted average return on equity rose to 7.10%, an increase of 5.60 percentage points compared to the previous year[20]. - The company reported a net cash flow from operating activities of 2,649,232 thousand RMB, a significant recovery from a negative cash flow of 49,788 thousand RMB in the same period last year[20]. - Total assets at the end of the reporting period were 157,775,687 thousand RMB, an 8.35% increase from the previous year[20]. - Non-recurring gains and losses totaled 214,817 thousand RMB, with significant contributions from government subsidies and asset disposals[26]. - Operating costs rose to ¥70,760,277, reflecting a 253.48% increase from ¥20,018,287 year-over-year[57]. - Research and development expenses increased by 46.12% to ¥44,649 from ¥30,557 year-over-year[57]. - The company reported a significant increase in tax expenses, which rose by 159.82% to ¥1,103,513 from ¥424,723 in the previous year[57]. Risk Management - The company faces significant risks, which are detailed in the report's section on operational discussion and analysis[5]. - The company has a comprehensive risk management strategy in place to address the main risks identified in the report[5]. - The financial report includes a forward-looking statement risk disclaimer, indicating that future plans do not constitute a commitment to investors[3]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements[3]. - The company is exposed to foreign exchange risks due to overseas sales denominated in USD and AUD, which may impact revenue[93]. - The company incurred a foreign exchange loss of RMB 243.3 million due to currency fluctuations during the reporting period[94]. - The company has entered into foreign exchange hedging contracts with banks to manage foreign currency risk related to expected sales revenue[94]. - The company has effectively hedged against exchange rate fluctuations on USD debt, mitigating the impact on current profits and losses[94]. Shareholder Information - The controlling shareholder, Yanzhou Coal Group, holds a 56.59% stake in the company[9]. - The largest shareholder, Yanzhou Coal Mining Company Limited, holds 2,600,000,000 shares, representing 52.93% of total shares[183]. - The second largest shareholder, Hong Kong Central Clearing Limited, holds 1,945,116,299 shares, accounting for 39.60% of total shares[183]. - The total number of ordinary shareholders as of the end of the reporting period is 51,306[181]. - The report indicates that the company has no major shareholders other than the board members and senior management as of June 30, 2017[185]. - The top ten unrestricted shareholders collectively hold a significant portion of the company's shares, with the largest being Hong Kong Central Clearing Limited holding 1.95 billion shares[186]. Legal Matters - The company has ongoing litigation with a total principal amount of RMB 10.34 million related to a financial loan contract dispute with Weifang Commercial Bank[109]. - The company has appealed against the judgments in three major lawsuits, with the total amount involved being RMB 11.15 million[107]. - The company is currently facing a claim of RMB 99.96 million from Luxing Real Estate regarding receivables, with ongoing investigations into the legitimacy of the claims[111]. - The company is involved in a lawsuit with Jinan Railway Transportation Group, seeking the return of RMB 80 million for unpaid coal supply, with the case currently under review[113]. - The company is pursuing legal action against Dongda Energy for RMB 49.54 million in unpaid coal payments as of December 31, 2016[117]. - The company is actively pursuing legal measures to protect its interests and maintain its financial integrity amidst ongoing litigation[111]. Operational Highlights - The company produced 36,403 thousand tons of raw coal, an increase of 4,813 thousand tons or 15.24% year-on-year[37]. - The company achieved a total coal sales volume of 41,697 thousand tons, up 9,140 thousand tons or 28.07% compared to the same period in 2016[37]. - The average selling price of coal increased significantly, leading to a total coal business revenue of 21.1192 billion yuan, an increase of 10.5002 billion yuan or 98.9% year-on-year[41]. - The company’s railway freight volume increased to 6,641 thousand tons, an increase of 1,774 thousand tons or 36.45% year-on-year[37]. - The company’s coal sales in China reached 32,168 thousand tons, generating revenue of 16.8435 billion yuan, compared to 23,497 thousand tons and 7.7799 billion yuan in the same period of 2016[44]. Corporate Governance - The company has implemented a robust corporate governance structure, adhering to the principles of transparency and accountability[170]. - The company has maintained compliance with the corporate governance code and has not deviated from any prescribed standards[171]. - The company has established a comprehensive investor relations management system to facilitate effective communication with the capital market[172]. - The company confirmed compliance with Hong Kong listing rules regarding related party transactions[136]. - The company has not faced any penalties or investigations from regulatory authorities during the reporting period[122]. Future Plans - The company plans to continue optimizing its asset structure and enhancing profitability through strategic acquisitions, including the 100% stake in United Coal Industry[35]. - The company plans to continue expanding its coal production capacity and improve operational efficiency to mitigate rising costs and enhance profitability in the future[46]. - The company aims to enhance production efficiency by optimizing coal production organization and maintaining stable operations at its mines in Inner Mongolia and Australia[90]. - The company plans to strengthen marketing capabilities by optimizing sales channels and expanding market capacity and sales efficiency[91]. - The company expects to maintain a high operating level for coal prices in the second half of 2017 due to supply-side structural reforms and tightening import coal policies[90].