兖煤澳大利亚(03668) - 2019 - 年度财报

Company Overview and Core Values Yancoal Australia is a leading coal producer focused on powering Asian economies and transitioning towards a low-carbon future Company Profile and Vision Yancoal Australia is a leading coal producer committed to powering Asian economies and playing a key role in developing low-emission solutions - The company positions itself as a driving force for Asian economic development, committed to a low-carbon future through technological innovation for low-emission solutions[9][614] Core Values The company's core values, centered on "empowerment," encompass safety, innovation, integrity, community, and employees - The company prioritizes safety, empowering employees to identify and resolve safety risks, with 2019 safety performance demonstrating the effectiveness of these efforts[12][617] - The company is committed to innovation, encouraging employees to share ideas and collaborate to meet customer needs and create shareholder value, exemplified by funding cancer research at Queensland University of Technology[14][15][619] - The company values community, spending nearly AUD 3 billion annually on local procurement and voluntarily donating approximately AUD 1.6 million to support community organizations for sustainable development[18][623] - The company considers employees as core, with over 4,000 staff, valuing everyone's participation and contribution as the energy source for value creation[20][625] 2019 Annual Performance Highlights Despite falling international coal prices in 2019, the company achieved strong financial and operational performance, including AUD 1.64 billion operating EBITDA and AUD 719 million profit after tax 2019 Annual Key Financial and Operational Indicators | Indicator | 2019 Data | | :--- | :--- | | Revenue | AUD 4.46 billion | | Operating EBITDA | AUD 1.64 billion | | Profit after Tax | AUD 719 million | | Total Dividends | AUD 417 million (31.56 AUD cents per share) | | Attributable Saleable Coal Production | 35.6 million tonnes | | Cash Cost (excluding royalties) | AUD 61/tonne | | Average Selling Price (Thermal & Metallurgical Coal) | AUD 111/tonne | | Net Gearing Ratio | 29% | - Despite the decline in international coal prices in 2019, the company's operating EBITDA and profit after tax remained strong[37][642] - The company made significant distributions and continued to repay debt over the past two years, maintaining a controllable gearing ratio[37][642] Executive Messages Executive messages highlight the company's strong 2019 performance, strategic responses to market challenges, and significant contributions to the Australian economy Chairman's Message Chairman Zhang Baocai reviewed 2019 performance, emphasizing strong results despite challenges, significant debt repayment, and dividend payments, while addressing 2020 challenges - In 2019, the company performed well under severe market conditions, with key achievements including reducing operating costs to AUD 61 per tonne, increasing production, and improving financial position[39][644] - The company paid a total of AUD 417 million in dividends in 2019 and repaid USD 1.4 billion in debt ahead of schedule over the past two years[39][644] - Looking ahead to 2020, the company faces dual challenges from Australian bushfires and the COVID-19 pandemic, has taken proactive measures, and will closely monitor international coal market supply and demand dynamics[39][644] CEO's Message CEO David Moult emphasized achieving key operational goals in 2019, delivering shareholder returns, and highlighting the company's significant economic and social contributions to Australia - The company's 2019 operational performance was strong, achieving targets for increased production, reduced costs, and maintained capital expenditure, enabling sustained dividend payments and a lower gearing ratio[42][647] - The company's total annual impact on the Australian economy exceeds AUD 8.6 billion, providing 43,300 full-time jobs and contributing AUD 720 million in fiscal revenue to all levels of government[42][647] - The thermal coal produced by the company is sufficient to power Australia for one year, and exported metallurgical coal can produce 3.5 million tonnes of steel, equivalent to building approximately 70 Sydney Harbour Bridges[42][647] Strategy, Operations, and ESG This section details the company's strategic focus on value creation, operational efficiency across its mines, and robust environmental, social, and governance practices Strategy and Capital Allocation The company's strategy focuses on value creation and shareholder returns through operational efficiency, robust cash flow, and disciplined capital allocation prioritizing reinvestment, dividends, and debt reduction - The company uses strict capital allocation, deploying operating cash flow (AUD 1.55 billion in 2019) for reinvestment, dividend payments, and debt reduction[47][652] - The company prioritizes debt reduction, having repaid USD 1.4 billion ahead of schedule since late 2017, reducing the gearing ratio to 29% by the end of 2019[47][652] - The company distributed a total of AUD 417 million in dividends in 2019, representing a payout ratio of 58% of the full-year profit after tax[47][652] Operations Review The company operates major coal mines in NSW and Queensland, producing 35.6 million tonnes of saleable coal in 2019, primarily from Mooraback, MTW, and HVO, all for export to Asia-Pacific 2019 Operations Overview by Mine (Attributable) | Mine | Economic Interest | Saleable Reserves (million tonnes) | 2019 Saleable Coal Production (million tonnes) | | :--- | :--- | :--- | :--- | | Mooraback | 85% | 192 | 15.2 | | Mount Thorley Warkworth | 82.9% | 176 | 9.9 | | Hunter Valley Operations | 51% | 332 | 6.9 | | Ashton | 100% | 42 | 2.8 | | Stratford Duralie | 100% | 11 | 0.8 | | Total (Attributable) | - | 753 | 35.6 | Environmental, Social, and Governance (ESG) The company demonstrates robust ESG performance, with improved safety (TRIFR reduced to 7.27), strict environmental compliance (6% reduction in Scope 1 & 2 emissions), and significant community investment - Safety performance improved in 2019, with the Total Recordable Injury Frequency Rate (TRIFR) decreasing from 8.01 at the end of 2018 to 7.27[56][661] Greenhouse Gas Emissions Report (million tonnes CO2-e) | Reporting Period | Scope 1 Emissions | Scope 2 Emissions | Total Emissions | | :--- | :--- | :--- | :--- | | 2017-2018 | 1.75 | 0.36 | 2.11 | | 2018-2019 | 1.62 | 0.37 | 1.98 | - In 2019, the company invested approximately AUD 1.6 million through community support programs in Australia, supporting 177 local projects across health, social, environmental, and educational sectors[64][67][669] Coal Reserves and Resources As of Dec 31, 2019, total attributable coal resources increased to 6,911 million tonnes (from 6,442 Mt), while saleable coal reserves were 872 million tonnes (from 891 Mt), detailed by mine Coal Resources and Reserves Overview (as of December 31, 2019, Attributable Basis) | Category | 2019 (million tonnes) | 2018 (million tonnes) | Change | | :--- | :--- | :--- | :--- | | Total Coal Resources | 6,911 | 6,442 | ▲ 7.3% | | Recoverable Coal Reserves | 1,196 | 1,240 | ▼ 3.5% | | Saleable Coal Reserves | 872 | 891 | ▼ 2.1% | Financial Report This section provides a comprehensive overview of the company's financial performance, including management discussion, directors' report, related party transactions, governance, and audited financial statements Management Discussion and Analysis In 2019, total revenue decreased 7% to AUD 4.525 billion and profit after tax fell 16% to AUD 719 million due to weak coal markets, partially offset by increased production and lower costs 2018-2019 Operating Performance Comparison (million AUD) | Indicator | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,525 | 4,891 | ▼ 7.5% | | Operating EBITDA | 1,635 | 2,180 | ▼ 25.0% | | Operating EBIT | 1,028 | 1,657 | ▼ 38.0% | | Profit after Income Tax | 719 | 852 | ▼ 15.6% | 2018-2019 Coal Production and Sales Comparison | Indicator | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Attributable Saleable Coal Production (million tonnes) | 35.6 | 32.9 | ▲ 8.2% | | Run-of-Mine Coal Sales (million tonnes) | 35.6 | 33.5 | ▲ 6.3% | | Average Selling Price (AUD/tonne) | 111 | 132 | ▼ 15.9% | | Cash Operating Cost (AUD/tonne) | 61 | 63 | ▼ 3.2% | 2018-2019 Cash Flow Comparison (million AUD) | Cash Flow Activity | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,548 | 1,747 | (199) | | Net Cash from Investing Activities | (392) | (55) | (337) | | Net Cash from Financing Activities | (1,209) | (904) | (305) | - The gearing ratio decreased from 35% at the end of 2018 to 29% at the end of 2019, primarily due to strong operating cash flow and continuous debt repayment[123][124][728] Directors' Report The Directors' Report outlines the company's 2019 operational and financial performance, corporate activities, director information, remuneration, and other statutory disclosures - In 2019, the company's Total Recordable Injury Frequency Rate (TRIFR) was 7.27, an improvement from 8.01 in the previous year[129][56][661] - The company voluntarily repaid USD 500 million in debt in February 2019 and distributed a 2018 final dividend of AUD 211 million, a special dividend of AUD 166 million, and a 2019 interim dividend of AUD 137 million[132][737] - The remuneration report details that executive compensation comprises fixed annual salary, Short-Term Incentive (STI), and Long-Term Incentive (LTI) plans, linked to key performance indicators such as company profitability, cost control, production, and safety[201][202][203] Continuing Connected Transactions This section discloses ongoing transactions with related parties, including Yanzhou Coal, Glencore, Sojitz, and POSCO, covering coal sales/purchases, management services, and financing, all under normal commercial terms and within annual caps - Transactions with controlling shareholder Yanzhou Coal and its subsidiaries include coal sales (annual cap USD 250 million), coal purchases (annual cap USD 65 million), and provision of management services (annual cap AUD 15 million)[260][261][262] - Transactions with Glencore include coal sales and purchases, both with an annual cap of USD 350 million[266][267] - The company sells coal to POSCO and its associates, with a 2019 annual transaction cap of USD 780 million[267] Corporate Governance Report The company maintains high corporate governance standards, adhering to Australian and Hong Kong regulations, detailing board structure, committee functions, risk management, disclosure policies, and shareholder rights - The Board of Directors comprises 11 directors, including 1 executive director, 6 non-executive directors, and 4 independent non-executive directors[280][281] - The company has four standing committees: Audit and Risk Management, Health Safety Environment and Community, Nomination and Remuneration, and Strategy Development, to assist the Board in fulfilling its responsibilities[281] - The company has established a robust risk management framework, overseen by the Audit and Risk Management Committee, to regularly identify, assess, and manage significant business risks, including economic, environmental, and social sustainability risks[297] Consolidated Financial Statements This section presents the audited consolidated financial statements for the year ended December 31, 2019, including income, balance sheet, equity, and cash flow statements, showing AUD 4.46 billion revenue and AUD 719 million profit after tax Consolidated Income Statement Summary (million AUD) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 4,460 | 4,850 | | Profit before Income Tax | 767 | 1,172 | | Income Tax Expense | (48) | (320) | | Profit after Income Tax | 719 | 852 | Consolidated Balance Sheet Summary (million AUD) | Item | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 11,093 | 11,379 | | Total Liabilities | 4,930 | 5,541 | | Net Assets | 6,163 | 5,838 | | Contributed Equity | 6,482 | 6,482 | | Total Equity | 6,163 | 5,838 | Consolidated Cash Flow Statement Summary (million AUD) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,548 | 1,747 | | Net Cash Outflow from Investing Activities | (392) | (55) | | Net Cash Outflow from Financing Activities | (1,209) | (904) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (53) | 788 |