中国神华(01088) - 2025 - 中期业绩

Section I. Definitions This section defines key terms, corporate entities, accounting standards, and financial indicators used in the report to ensure consistent understanding of its content - The report defines key entities such as “China Shenhua/the Company,” “the Group,” and “China Energy Investment Corporation,” along with accounting standards like “China Accounting Standards for Business Enterprises” and “International Financial Reporting Standards”[8][11] - Key financial indicators such as “EBITDA,” “asset-liability ratio,” and “total debt to capital ratio” are provided with clear calculation methods[11] - The reporting period is defined as January to June 2025[11] Section II. Company Profile and Key Financial Indicators This section presents the company's basic information, contact details, stock overview, and detailed key accounting data and financial indicators for the first half of 2025, including year-on-year changes and restatements due to the acquisition of Hangjin Energy - Mr. Lv Zhiren, the company's legal representative, resigned as Chairman and Executive Director on March 24, 2025, with the selection of a new chairman underway[13] Key Accounting Data and Financial Indicators for H1 2025 (vs. H1 2024) | Indicator | Unit | H1 2025 | H1 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | RMB million | 138,109 | 169,121 | (18.3) | | Profit for the period | RMB million | 32,059 | 36,983 | (13.3) | | Profit attributable to owners of the Company | RMB million | 26,706 | 31,356 | (14.8) | | Basic EPS | yuan/share | 1.344 | 1.578 | (14.8) | | Net cash inflow from operating activities | RMB million | 45,794 | 51,890 | (11.7) | | Return on total assets at period-end | % | 4.7 | 5.4 | decreased by 0.7 percentage points | | Return on net assets at period-end | % | 6.6 | 8.0 | decreased by 1.4 percentage points | | EBITDA | RMB million | 50,629 | 54,764 | (7.6) | Key Balance Sheet Indicators as of June 30, 2025 (vs. December 31, 2024) | Indicator | Unit | June 30, 2025 | December 31, 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | RMB million | 686,068 | 671,639 | 2.1 | | Total liabilities | RMB million | 212,433 | 171,377 | 24.0 | | Total equity | RMB million | 473,635 | 500,262 | (5.3) | | Equity attributable to owners of the Company | RMB million | 404,527 | 422,595 | (4.3) | | Asset-liability ratio | % | 31.0 | 25.5 | increased by 5.5 percentage points | | Total debt to capital ratio | % | 7.1 | 8.9 | decreased by 1.8 percentage points | - The company completed the acquisition of 100% equity in Hangjin Energy on February 11, 2025, which was a business combination under common control, leading to retrospective adjustments to the comparative consolidated financial statements[20] Differences in Net Profit and Net Assets Attributable to Owners of the Company under Domestic and International Accounting Standards (RMB million) | Indicator | H1 2025 | H1 2024 (Restated) | June 30, 2025 | December 31, 2024 (Restated) | | :--- | :--- | :--- | :--- | :--- | | Under China Accounting Standards (Net Profit/Net Assets) | 24,641 | 28,012 | 401,523 | 419,559 | | Adjustments: Maintenance, safety production, and other similar expenses | 2,065 | 3,344 | 3,004 | 3,036 | | Under International Financial Reporting Standards (Net Profit/Net Assets) | 26,706 | 31,356 | 404,527 | 422,595 | Section III. Chairman's Statement The Board reviews the company's stable operations, project construction, technological innovation, capital operations, and corporate governance in H1 2025 amidst declining coal and power prices, and outlines H2 market outlook and strategic priorities including energy supply, green development, innovation, management, and risk prevention - In H1 2025, the company's total market capitalization was RMB 762.3 billion, with A-share and H-share prices outperforming major industry indices[23] - The company maintained high self-produced coal output, ensured smooth and efficient energy transportation channels, achieved higher coal-fired power unit utilization hours than the national average, and successfully met energy supply targets during critical periods and in key regions[24] - Key projects, including Xinjie No. 1 and No. 2 mines, Jiujiang Phase II, Beihai Phase II coal-fired power projects, and the Indonesia South Sumatra No. 1 project, are progressing rapidly, with an additional 215 MW of renewable energy generation projects commencing commercial operation[25] - Technological innovation is empowering industrial upgrading, with Xinjie Energy successfully deploying the first “BIM+Beidou” smart infrastructure management system in China's coal infrastructure sector, and Shuohuang Railway's smart heavy-haul new model recognized as an outstanding case by SASAC[27] - The company completed the acquisition of Hangjin Energy equity and is actively promoting a new round of capital injection, distributed a final dividend of RMB 2.26 per share (tax inclusive) for 2024, increased the minimum annual dividend payout ratio to 65% of net profit attributable to owners of the Company for 2025-2027, and proposed an interim dividend of RMB 0.98 per share (tax inclusive) for 2025[27] - The focus for the second half of the year is “stable operations, innovation, optimized investment, strengthened management, and ensured safety,” concentrating on energy supply, green development, innovation leadership, management improvement, and risk prevention[30][31] Section IV. Management Discussion and Analysis Management discusses the macroeconomic, coal, and power market environments in H1 2025, outlines the H2 outlook, analyzes consolidated profit and loss, cash flow, and balance sheet, and provides segment-specific operational results and capital expenditure analysis, concluding with major risks and mitigation measures I. Industry and Principal Business Overview for the Reporting Period In H1 2025, China's economy grew by 5.3%, the coal market weakened with a 22.2% drop in thermal coal prices, while electricity supply and demand were balanced, with total electricity consumption up 3.7% and non-fossil energy capacity reaching 45.8% - In H1 2025, China's Gross Domestic Product (GDP) increased by 5.3% year-on-year[45] - In H1, China's thermal coal market saw a decline in price, with the average transaction price for 5,500 kcal thermal coal at Qinhuangdao Port approximately RMB 685/tonne, a year-on-year decrease of approximately 22.2%[46] Key Data for China's Coal Market in H1 2025 | Indicator | Unit | H1 2025 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Raw coal output of industrial enterprises above designated size | billion tonnes | 2.40 | 5.4 | | Coal imports | billion tonnes | 0.22 | (11.1) | | National railway coal transportation volume | billion tonnes | 1.34 | (4.8) | - In H1 2025, total electricity consumption was 4,841.8 billion kWh, a year-on-year increase of 3.7%, with thermal power generation decreasing by 2.4% year-on-year, while wind, solar, and nuclear power generation increased by 10.6%, 20.0%, and 11.3% year-on-year, respectively[52] - As of June 2025, national power generation installed capacity reached 3.65 billion kW, a year-on-year increase of 18.7%, with wind and solar power accounting for 45.8% of total installed capacity[53] - Electricity consumption growth in H2 is expected to exceed H1, with national total electricity consumption increasing by 5%-6% year-on-year, and the coal market is anticipated to stabilize with narrower price fluctuations[55][57] - The Group's principal businesses include coal and power production and sales, railway, port, and shipping transportation, and coal chemical products, operating under an integrated model encompassing coal, power generation, railway, port, shipping, and coal chemical industries[58] - As of June 30, 2025, the company's coal resources in place amounted to 41.58 billion tonnes, recoverable reserves 17.45 billion tonnes; it controls and operates power generating units with an installed capacity of 47,632 MW; railway operating mileage is 2,408 km; total port loading capacity is approximately 270 million tonnes/year; its own shipping fleet is approximately 2.24 million DWT; and coal-to-olefin project production capacity is approximately 600 thousand tonnes/year[59] II. Discussion and Analysis of Operating Performance In H1 2025, the company's revenue decreased by 18.3%, profit before tax by 11.0%, and net profit attributable to owners by 14.8%, with operating performance better than expected and quality improving, despite not meeting half of the annual targets for key operational metrics Key Financial Performance in H1 2025 (vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (Restated, RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 138,109 | 169,121 | (18.3) | | Profit before tax | 40,013 | 44,971 | (11.0) | | Profit attributable to owners of the Company | 26,706 | 31,356 | (14.8) | | Basic EPS (yuan/share) | 1.344 | 1.578 | (14.8) | H1 2025 Operating Target Achievement | Item | 2025 Target | H1 Achievement | Achievement Ratio (%) | | :--- | :--- | :--- | :--- | | Commercial Coal Production (billion tonnes) | 3.348 | 1.654 | 49.4 | | Coal Sales Volume (billion tonnes) | 4.659 | 2.049 | 44.0 | | Power Generation (billion kWh) | 2,271 | 987.8 | 43.5 | | Revenue (RMB billion) | 3,200 | 1,381.09 | 43.2 | | Operating Costs (RMB billion) | 2,300 | 943.74 | 41.0 | | Selling, General & Administrative, R&D Expenses, and Net Finance Costs (RMB billion) | 145 | 63.14 | 43.5 | | Change in Unit Production Cost of Self-Produced Coal | approx. 6% year-on-year increase | 3.9% year-on-year decrease | ╱ | III. Analysis of Core Competitiveness during the Reporting Period The company's core competitiveness remains unchanged, characterized by its integrated coal-rail-port-shipping-power-chemical operations, abundant coal resources, professional management, and leading technological innovation in green mining, clean power generation, heavy-haul rail, and smart port operations - The Group's core competitiveness is primarily reflected in its integrated coal-rail-port-shipping-power-chemical vertical operation model, high-quality and abundant coal resources, dedicated management team and advanced operating philosophy, as well as its domestically and internationally leading industrial technology and scientific innovation capabilities in green coal mining, clean coal-fired power generation, heavy-haul railway transportation, and smart port operations[64] IV. Key Operating Performance during the Reporting Period This section analyzes the company's H1 2025 consolidated profit and loss, cash flow, and balance sheet, along with segment-specific operational results, capital expenditures, and resource status for coal, power, railway, port, shipping, and coal chemical businesses 1. Analysis of Major Changes in Consolidated Statement of Profit or Loss and Other Comprehensive Income and Condensed Consolidated Statement of Cash Flows In H1 2025, revenue decreased by 18.3% due to lower coal and power sales, while operating costs fell by 20.6% from reduced external coal and fuel expenses, and cash flows from operating activities decreased by 11.7% Major Changes in Consolidated Statement of Profit or Loss and Cash Flows (H1 2025 vs. H1 2024) | Item | H1 2025 (RMB million) | H1 2024 (Restated, RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 138,109 | 169,121 | (18.3) | | Operating Costs | (94,374) | (118,908) | (20.6) | | R&D Expenses | (727) | (981) | (25.9) | | Other Gains and Losses | 408 | (147) | (377.6) | | Net cash inflow from operating activities | 45,794 | 51,890 | (11.7) | | Net cash outflow from investing activities | (19,557) | (44,051) | (55.6) | | Net cash outflow from financing activities | (12,833) | (2,403) | 434.0 | - The decrease in revenue was primarily due to a 10.9% decrease in coal sales volume and a 12.9% decrease in average coal sales price, as well as a 7.3% decrease in electricity sales volume and a 4.2% decrease in average electricity sales price[67][68] Changes in Operating Cost Composition (H1 2025 vs. H1 2024) | Cost Item | H1 2025 (RMB million) | % of Total Costs | H1 2024 (Restated, RMB million) | % of Total Costs | Change in Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Purchased Coal Costs | 16,641 | 17.6 | 32,105 | 27.0 | (48.2) | | Raw Materials, Fuel, and Power | 15,695 | 16.6 | 17,679 | 14.9 | (11.2) | | Staff Costs | 16,754 | 17.8 | 17,652 | 14.8 | (5.1) | | Repair and Maintenance | 4,876 | 5.2 | 5,899 | 5.0 | (17.3) | | Depreciation and Amortization | 10,203 | 10.8 | 9,926 | 8.3 | 2.8 | | Transportation Expenses | 7,543 | 8.0 | 9,385 | 7.9 | (19.6) | | Taxes and Surcharges | 7,979 | 8.5 | 9,078 | 7.6 | (12.1) | | Others | 14,683 | 15.5 | 17,184 | 14.5 | (14.6) | | Total Operating Costs | 94,374 | 100.0 | 118,908 | 100.0 | (20.6) | - Total other gains and losses amounted to a gain of RMB 408 million (compared to a loss of RMB 147 million in the same period last year), primarily from gains on disposal of subsidiary equity and structured deposit income[66][74] - Net cash outflow from investing activities decreased by 55.6% year-on-year, mainly due to a higher recovery of structured deposit products during the reporting period[76] - Net cash outflow from financing activities significantly increased by 434.0% year-on-year, primarily due to the Group's higher debt repayments during the reporting period[76] - R&D investment in H1 2025 was RMB 1,213 million, a year-on-year decrease of 9.3%, primarily for smart mine construction, research on key technologies for efficient low-carbon thermal power, and diversified integrated energy supply[77] 2. Explanation of Significant Changes in Company Business Type, Profit Composition, or Profit Sources During the reporting period, there were no significant changes in the company's business type, profit composition, or sources of profit, with the pre-tax profit contribution from coal, power, transportation, and coal chemical segments remaining stable - The Group's primary operating model is an integrated industrial chain encompassing coal production → coal transportation (railway, port, shipping) → coal conversion (power generation and coal chemicals)[79] Segment Profit Before Tax Contribution (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Segment | H1 2025 (%) | H1 2024 (Restated, %) | | :--- | :--- | :--- | | Coal | 63 | 66 | | Power Generation | 14 | 13 | | Transportation | 23 | 21 | | Coal Chemical | 0 | 0 | 3. Coal Segment In H1 2025, the coal segment's commercial coal output decreased by 1.7% to 165.4 million tonnes, sales volume by 10.9% to 204.9 million tonnes, and average sales price by 12.9% to RMB 493/tonne, while gross margin increased by 1.5 percentage points to 26.2% Commercial Coal Production, Sales Volume, and Price (H1 2025 vs. H1 2024) | Indicator | H1 2025 | H1 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Commercial Coal Production (million tonnes) | 165.4 | 168.2 | (1.7) | | Coal Sales Volume (million tonnes) | 204.9 | 230.0 | (10.9) | | Of which: Self-produced Coal Sales Volume (million tonnes) | 161.9 | 167.6 | (3.4) | | Purchased Coal Sales Volume (million tonnes) | 43.0 | 62.4 | (31.1) | | Average Sales Price (RMB/tonne, excl. tax) | 493 | 566 | (12.9) | - As of the end of the reporting period, the Group had completed 7 advanced smart coal mines, 21 smart coal preparation plants, 37 smart longwall faces and 65 smart tunneling faces in underground mines; 404 sets of production equipment in open-pit mines achieved unmanned operation[91] Coal Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (Restated, RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 103,903 | 134,556 | (22.8) | | Operating Costs | (76,685) | (101,340) | (24.3) | | Gross Margin (%) | 26.2 | 24.7 | increased by 1.5 percentage points | | Profit before tax | 23,655 | 27,835 | (15.0) | Coal Resources and Reserves (China Standards, June 30, 2025 vs. December 31, 2024) | Indicator | June 30, 2025 (billion tonnes) | December 31, 2024 (billion tonnes) | Change (%) | | :--- | :--- | :--- | :--- | | Resources in Place | 41.58 | 34.36 | 21.0 | | Recoverable Reserves | 17.45 | 15.09 | 15.6 | | Marketable Reserves under JORC Standards | 11.13 | 10.51 | 5.9 | - The increase in coal resources in place was primarily due to the acquisition of Hangjin Energy (an increase of 3.82 billion tonnes) and the verification of resources in Xinjie Taigemiao South Area (an increase of 3.49 billion tonnes)[99] Unit Production Cost of Self-Produced Coal (RMB/tonne, H1 2025 vs. H1 2024) | Cost Item | H1 2025 | H1 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Unit Production Cost of Self-Produced Coal | 166.3 | 173.0 | (3.9) | | Raw Materials, Fuel, and Power | 27.7 | 30.6 | (9.5) | | Repair and Maintenance | 9.3 | 10.5 | (11.4) | 4. Power Generation Segment In H1 2025, total power generation decreased by 7.4% to 98.78 billion kWh, total electricity sales by 7.3% to 92.91 billion kWh, and average sales price by 4.2% to RMB 386/MWh, with market-based transactions accounting for 97.3% Power Generation and Sales Volume (H1 2025 vs. H1 2024) | Indicator | H1 2025 (billion kWh) | H1 2024 (Restated, billion kWh) | Change (%) | | :--- | :--- | :--- | :--- | | Total Power Generation | 98.78 | 106.65 | (7.4) | | Total Electricity Sales Volume | 92.91 | 100.25 | (7.3) | | Average Electricity Sales Price (RMB/MWh) | 386 | 403 | (4.2) | - Market-based electricity transactions amounted to 90.40 billion kWh, accounting for approximately 97.3% of total electricity sales volume[112] - Capacity charges totaling RMB 2.53 billion (tax inclusive) were obtained in H1, with an average capacity charge recovery rate of 99.0%; auxiliary service income totaled RMB 320 million (tax inclusive)[113] - In H1 2025, the Group added 215 MW of commercially operational photovoltaic power generation capacity[113] Total Installed Capacity of Generating Units (MW, June 30, 2025 vs. December 31, 2024) | Power Source | December 31, 2024 (Restated) | Added/(Reduced) during Reporting Period | June 30, 2025 | | :--- | :--- | :--- | :--- | | Coal-fired Power | 44,384 | ╱ | 44,384 | | Gas-fired Power | 2,194 | ╱ | 2,194 | | Hydropower | 125 | (47) | 78 | | Photovoltaic Power | 761 | 215 | 976 | | Total | 47,464 | 168 | 47,632 | - In H1 2025, the Group's coal-fired units had an average utilization of 2,143 hours, a decrease of 207 hours year-on-year, but 87 hours higher than the national average[120] Power Generation Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (Restated, RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 40,539 | 45,169 | (10.3) | | Operating Costs | (34,205) | (38,232) | (10.5) | | Gross Margin (%) | 15.6 | 15.4 | increased by 0.2 percentage points | | Profit before tax | 5,351 | 5,561 | (3.8) | - In H1 2025, the Group's unit electricity sales cost was RMB 344.1/MWh, a year-on-year decrease of 4.0%, primarily due to lower coal procurement prices[127] 5. Railway Segment In H1 2025, the railway segment's own railway transportation turnover decreased by 5.3% to 152.8 billion tonne-kilometers, while non-coal freight volume increased by 7.4%, and gross margin rose by 2.9 percentage points to 40.5% - In H1 2025, the Group's own railway transportation turnover was 152.8 billion tonne-kilometers, a year-on-year decrease of 5.3%[132] - Approximately 13.1 million tonnes of non-coal cargo, including metallic ores and chemical products, were transported, a year-on-year increase of 7.4%[132] Railway Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 21,433 | 22,442 | (4.5) | | Operating Costs | (12,749) | (14,004) | (9.0) | | Gross Margin (%) | 40.5 | 37.6 | increased by 2.9 percentage points | | Profit before tax | 7,259 | 7,141 | 1.7 | - In H1 2025, the railway segment's unit transportation cost was RMB 0.080/tonne-kilometer, a year-on-year decrease of 3.6%[134] 6. Port Segment In H1 2025, Huanghua Port's coal loading volume decreased by 2.2% to 107.6 million tonnes, while non-coal freight volume increased by 5.9%, and gross margin rose by 3.1 percentage points to 46.4% - In H1 2025, Huanghua Port's coal loading volume was 107.6 million tonnes, a year-on-year decrease of 2.2%, maintaining its position as the top coal port nationwide[136] - Tianjin Coal Terminal's coal loading volume was 21.8 million tonnes, a year-on-year decrease of 0.5%[136] - The port segment handled 7.2 million tonnes of non-coal cargo, including oil products and ores, a year-on-year increase of 5.9%[136] Port Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,464 | 3,443 | 0.6 | | Operating Costs | (1,856) | (1,952) | (4.9) | | Gross Margin (%) | 46.4 | 43.3 | increased by 3.1 percentage points | | Profit before tax | 1,355 | 1,231 | 10.1 | 7. Shipping Segment In H1 2025, the shipping segment's freight volume decreased by 23.8% to 49.9 million tonnes, while non-coal freight volume surged by 516.7%, and gross margin increased by 0.9 percentage points to 10.7% - In H1 2025, the Group's shipping freight volume was 49.9 million tonnes, a year-on-year decrease of 23.8%[139] - Non-coal freight volume, including ores, was 3.7 million tonnes, a significant year-on-year increase of 516.7%[139] Shipping Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,642 | 2,488 | (34.0) | | Operating Costs | (1,466) | (2,244) | (34.7) | | Gross Margin (%) | 10.7 | 9.8 | increased by 0.9 percentage points | | Profit before tax | 116 | 224 | (48.2) | - In H1 2025, the shipping segment's unit transportation cost was RMB 0.028/tonne-nautical mile, a year-on-year decrease of 6.7%[140] 8. Coal Chemical Segment In H1 2025, the coal chemical segment's polyolefin product sales volume increased by 23.4% to 354.6 thousand tonnes, gross margin rose by 1.2 percentage points to 5.0%, and profit before tax surged by 1875.0% Polyolefin Product Sales Volume (H1 2025 vs. H1 2024) | Product | H1 2025 (thousand tonnes) | H1 2024 (thousand tonnes) | Change in Sales Volume (%) | | :--- | :--- | :--- | :--- | | Polyethylene | 184.0 | 148.2 | 24.2 | | Polypropylene | 170.6 | 139.2 | 22.6 | | Total | 354.6 | 287.4 | 23.4 | Coal Chemical Segment Operating Results (Before Consolidation Eliminations, H1 2025 vs. H1 2024) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,919 | 2,538 | 15.0 | | Operating Costs | (2,773) | (2,442) | 13.6 | | Gross Margin (%) | 5.0 | 3.8 | increased by 1.2 percentage points | | Profit before tax | 79 | 4 | 1,875.0 | - In H1 2025, the coal chemical segment consumed a total of 2.5 million tonnes of coal, a year-on-year increase of 19.0%[145] V. Segmental Operating Performance by Region In H1 2025, domestic market revenue accounted for 97.0% of total revenue, while overseas market revenue decreased by 27.4% due to lower coal prices, with overseas projects operating well External Transaction Revenue by Region (H1 2025 vs. H1 2024) | Region | H1 2025 (RMB million) | H1 2024 (Restated, RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | External transaction revenue from domestic markets | 134,009 | 163,473 | (18.0) | | External transaction revenue from overseas markets | 4,100 | 5,648 | (27.4) | | Total | 138,109 | 169,121 | (18.3) | - Overseas projects are operating well, with Indonesia South Sumatra EMM units achieving 13 consecutive years without unplanned outages, Indonesia Java units demonstrating good economic efficiency, Indonesia South Sumatra No. 1 project progressing normally, and the US Pennsylvania shale gas project producing 53 million cubic meters of gas in H1[148] VI. Analysis of Investment Status In H1 2025, the company invested RMB 11,218 million in Hangjin Energy and RMB 3,918 million in other equity investments, with fair value financial assets totaling RMB 10,379 million, and capital expenditures of RMB 14.746 billion primarily for project construction and technological upgrades - In H1 2025, the company made new equity investments of RMB 11,218 million in Hangjin Energy and RMB 3,918 million in other equity investments, primarily to increase capital for its coal, power generation, transportation, and coal chemical subsidiaries[149] Changes in Financial Assets Measured at Fair Value (RMB million) | Asset Category | Opening Balance (RMB million) | Closing Balance (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss (current assets) | 17,302 | 7,103 | (58.9) | | Equity investments at fair value through other comprehensive income | 2,787 | 2,813 | 0.9 | | Financial assets at fair value through other comprehensive income | 1,174 | 403 | (65.7) | | Financial assets at fair value through profit or loss (non-current assets) | 60 | 60 | 0.0 | | Total | 21,323 | 10,379 | (51.3) | H1 2025 Capital Expenditure Completion (RMB billion) | Business | 2025 Plan | H1 Achievement | | :--- | :--- | :--- | | Coal Business | 96.81 | 41.35 | | Power Generation Business | 174.11 | 86.96 | | Transportation Business | 81.66 | 14.35 | | Coal Chemical Business | 54.46 | 4.76 | | Others | 10.89 | 0.04 | | Total | 417.93 | 147.46 | - Capital expenditures were primarily for the construction of Xinjie Taigemiao mining area and Hangjin Energy Tarangaole minefield projects, coal mine equipment procurement and technological upgrades; construction of Jiujiang Power Plant Phase II in Jiangxi, Qingyuan Power Plant Phase II in Guangdong, and other thermal power projects; Dongyue Railway construction and railway line expansion and renovation; Huanghua Port Phase V project, Zhuhai Gaolan Port National Energy Bulk Cargo Terminal project construction; and coal-to-olefin upgrade demonstration project construction[156] VII. Significant Asset and Equity Disposals During the reporting period, the company had no significant asset or equity disposal matters VIII. Analysis of Major Controlled and Invested Companies Net profit attributable to owners of major subsidiaries like Shendong Coal and Jinjie Energy decreased due to lower coal sales and transportation, while Zhungeer Energy and Huanghua Port increased due to reduced coal procurement costs and equity transfer gains Changes in Net Profit Attributable to Owners of Major Subsidiaries (H1 2025 vs. H1 2024) | No. | Company | Principal Business | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | Primary Reasons for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Shendong Coal | Coal mining, processing, and sales | 4,126 | 5,537 | (25.5) | Decrease in coal sales volume and average sales price | | 2 | Shuohuang Railway | Railway transportation | 3,419 | 3,416 | 0.1 | - | | 4 | Jinjie Energy | Coal mining, processing, and sales, power generation business | 1,569 | 2,158 | (27.3) | Decrease in average coal sales price; decrease in electricity sales volume and average sales price | | 5 | Zhungeer Energy | Coal mining, processing, and sales | 1,479 | 1,367 | 8.2 | - | | 6 | Huanghua Port | Port operations | 851 | 846 | 0.6 | - | | 9 | Shendong Power | Power generation business | 481 | 426 | 12.9 | Decrease in coal procurement prices | | 10 | Sichuan Energy | Power generation business | 603 | 545 | 10.6 | Affected by the disposal of equity in Guoneng (Mianzhu) Hydropower Co., Ltd. | | 12 | Indonesia Java | Power generation business | 520 | 456 | 14.0 | Increase in electricity sales volume | | 14 | Sales Group | Coal wholesale operations, transportation agency | 401 | 859 | (53.3) | Decrease in coal sales volume and average sales price | | 15 | Xinshuo Railway | Railway transportation | 338 | 576 | (41.3) | Decrease in railway transportation turnover | - The company completed the acquisition of 100% equity in Hangjin Energy, which was included in the consolidation scope, resulting in a net loss of RMB 54 million attributable to owners of the parent company in H1[164] - Sichuan Energy, a subsidiary of the company, completed the disposal of its equity in Guoneng (Mianzhu) Hydropower Co., Ltd., recognizing a gain on equity transfer of RMB 237 million[164] IX. Structured Entities Controlled by the Company During the reporting period, the company had no structured entities under its control X. Contingent Liabilities The Group's contingent liabilities are detailed in the notes to the financial statements under "Commitments and Contingent Liabilities" XI. Events After the Reporting Period After the reporting period, the Board proposed an interim dividend and initiated the acquisition of coal, pit-mouth coal-fired power, and coal-to-oil/gas/chemical assets from China Energy Investment Corporation to further reduce competition - The Board proposed a cash dividend of RMB 19,471 million (tax inclusive) for the six months ended June 30, 2025, equivalent to RMB 0.98 per share (tax inclusive), subject to shareholder approval[5] - On August 15, 2025, the company initiated the acquisition of equity assets in coal, pit-mouth coal-fired power, and coal-to-oil/gas/chemical related target companies held by China Energy Investment Corporation, along with raising supporting funds, to further reduce horizontal competition[167] V. Implementation of the "Quality Improvement, Efficiency Enhancement, and High Returns" Action Plan for 2025 The company actively implemented its "Quality Improvement, Efficiency Enhancement, and High Returns" action plan, achieving year-on-year gross margin growth across segments, increasing dividend payout ratios, completing the Hangjin Energy acquisition, and strengthening corporate governance and investor relations - The Group strengthened its responsibility for energy supply, maintaining stable and orderly production and operations; actively responded to market changes, tapped internal cost reduction potential, and achieved year-on-year growth in gross margin across all segments[169] - The 2024 final cash dividend of RMB 2.26 per share (tax inclusive), representing 76.5% of net profit attributable to owners of the Company, has been fully distributed[169] - A dividend policy for 2025-2027 has been formulated, stipulating that annual cash dividends shall be no less than 65% of the net profit attributable to owners of the Company for the respective year, with interim dividends considered when appropriate[169] - The Board proposed an interim dividend of RMB 0.98 per share (tax inclusive) for 2025, totaling RMB 19,471 million, representing 72.9% of the profit attributable to owners of the Company under IFRS for H1 2025[169] - Completed the acquisition of 100% equity in Hangjin Energy and initiated the acquisition of coal, pit-mouth coal-fired power, and coal-to-oil/gas/chemical related assets held by China Energy Investment Corporation[170] - Improved the corporate governance system, promoted the reform of the supervisory board, and revised and improved the Articles of Association, Rules of Procedure for Shareholder Meetings, and Rules of Procedure for Board Meetings[171] - Approved the “China Shenhua Energy Company Limited Market Value Management System,” formulated the “China Shenhua 2025 Annual Market Value Management Work Implementation Plan,” and organized quarterly market value management work meetings[172] - A total of 126 investor communication meetings were held in H1, engaging approximately 1,800 investors[174] VI. Potential Risks and Countermeasures The company faces risks in safety, environmental protection, compliance, project management, market competition, investment, integrated operations, policy, and international business, and has established a closed-loop risk management system with specific mitigation measures for each risk - The company faces primary risks in safety and environmental protection, compliance, engineering project management, market competition, investment, integrated operations, policy, and international business, with no new risk factors identified during the reporting period[175] - The company has established a closed-loop risk management system encompassing annual risk identification, quarterly risk monitoring, dynamic risk assessment, daily inspection warnings, and year-end supervision and evaluation[175] - To address safety and environmental risks, the company strictly implements safety production responsibilities, deepens the three-year action plan for fundamental safety production improvements, and intensifies efforts in pollution prevention and control[176] - To address compliance management risks, the company continuously optimizes its legal and compliance risk prevention system, promotes “standardized contracts for major business types,” and dynamically identifies, assesses, and warns of legal and compliance risks[177] - To address engineering management risks, the company improves its infrastructure management system, strengthens technical and economic feasibility studies, scientifically optimizes investment decisions, and controls project engineering costs at the source[177] - To address market and sales risks, the company strengthens macroeconomic research, improves its market analysis system, optimizes its coal product structure, actively develops supportive and guaranteed coal-fired power projects, and promotes joint ventures between coal-fired power and new energy[177] - To address integrated operation management risks, the company strengthens its core advantages in integrated operations, enhances production scheduling, reinforces industrial synergy, and improves integrated operation risk control capabilities[180] - To address international business risks, the company strengthens international situation analysis, improves international strategic planning, actively responds to the “Belt and Road” initiative, and promotes international energy cooperation[180] Section V. Corporate Governance, Environment, and Society This section details the company's corporate governance structure, Board operations, director diversity, audit and risk committee functions, changes in directors/supervisors/senior management, and securities trading compliance I. Overview of Corporate Governance The company has established a sound corporate governance framework, complying with the Corporate Governance Code, with a well-functioning Board, separation of Chairman and General Manager roles, diverse board members, and effective audit and risk committees - The company has established a relatively comprehensive corporate governance structure and sound operating mechanisms, fully complying with Appendix C1 “Corporate Governance Code” of the Hong Kong Listing Rules[181][185] - Following Mr. Lv Zhiren's resignation as Chairman and Executive Director, Mr. Zhang Changyan, Executive Director and General Manager, convened the Board until a new Chairman is elected[182] - The company's Board has formulated a Board Diversity Policy, selecting candidates based on categories such as gender, age, cultural and educational background, race, skills, knowledge, and professional experience[186] - The Audit and Risk Committee, composed of three independent non-executive directors, is responsible for overseeing external audit, internal audit, reviewing financial information, and supervising internal controls[187] - The Independent Directors Committee held three meetings, reviewing proposals such as the acquisition of Hangjin Energy, the implementation of continuing connected transaction agreements, and the risk assessment report of the finance company[188] II. Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Lv Zhiren resigned from his positions as Chairman and Executive Director of the company - Mr. Lv Zhiren resigned from his positions as Chairman and Executive Director of the company[190] III. Employee Information As of June 30, 2025, the Group had 89,929 employees, primarily in operations and maintenance, with a majority holding bachelor's degrees, and the increase in headcount was mainly due to the acquisition of Hangjin Energy Total Number and Professional Composition of Employees in the Group (June 30, 2025) | Category | Number (persons) | | :--- | :--- | | Employees at Company Headquarters | 180 | | Employees at Company Subsidiaries and Branches | 89,749 | | Total Employees in the Group | 89,929 | | Professional Composition | | | Operations and Maintenance Personnel | 55,141 | | Management and Administrative Personnel | 15,523 | | Financial Personnel | 1,548 | | R&D Personnel | 4,184 | | Technical Support Personnel | 8,238 | | Sales and Marketing Personnel | 638 | | Other Personnel | 4,657 | | Total | 89,929 | Educational Background of Group Employees (June 30, 2025) | Educational Level | Number (persons) | | :--- | :--- | | Postgraduate and above | 4,682 | | Bachelor's Degree | 40,996 | | Associate Degree | 20,705 | | Technical Secondary School | 8,322 | | Technical School, High School, and below | 15,224 | | Total | 89,929 | - The total number of employees in the Group increased compared to the end of 2024, primarily due to the completion of the acquisition of 100% equity in Hangjin Energy in February 2025, which expanded the scope of employee statistics to include Hangjin Energy[192] IV. Profit Distribution Plan The company approved a 2025-2027 dividend policy to distribute at least 65% of annual net profit attributable to owners as cash dividends, and proposed an interim dividend of RMB 0.98 per share for 2025, representing 72.9% of H1 net profit attributable to owners under IFRS - For 2025-2027, the company's annual cash dividends will be no less than 65% of the net profit attributable to owners of the Company for the respective year[194] - The Board proposed an interim dividend of RMB 0.98 per share (tax inclusive) for 2025, totaling RMB 19,471 million (tax inclusive) based on the total share capital as of June 30, 2025[194] - This interim dividend represents 72.9% of the profit attributable to owners of the Company under IFRS for H1 2025, and 79.0% of the net profit attributable to owners of the Company under China Accounting Standards[194] - The 2024 final dividend of RMB 2.26 per share (tax inclusive), totaling RMB 44,903 million (tax inclusive), was fully distributed during the reporting period[199] V. Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures VI. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law As of June 30, 2025, 44 out of 45 of the Group's key environmental supervision enterprises were included in the list of enterprises required to disclose environmental information by law, with their respective inquiry indexes provided - As of June 30, 2025, there were 45 enterprises within the Group classified as key environmental supervision units, of which 44 were included in the list of enterprises required to disclose environmental information by law[202] - Although Shendong Coal Branch Company Equipment Maintenance Center No. 2 Plant is a key unit, it is not included in the “Ordos City 2025 List of Enterprises Required to Disclose Environmental Information by Law” and therefore is not required to disclose an environmental information disclosure report[202] VII. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization In H1 2025, the Group invested RMB 24.85 million in poverty alleviation funds across three designated counties, benefiting approximately 100,000 people, training 60 skilled personnel, and purchasing/selling RMB 8.46 million in agricultural products - In H1 2025, the Group invested RMB 24.85 million in poverty alleviation funds for three designated counties, including Mizhi County and Wubu County in Shaanxi Province, and Butuo County in Sichuan Province[209] - Implemented 12 key assistance projects in education, healthcare, industry, and infrastructure, benefiting approximately 100,000 people; trained 60 skilled personnel and grassroots cadres, and purchased/sold RMB 8.46 million in agricultural products[209] - In addition to the designated counties, the Group also carried out 6 other assistance projects, including local enterprise co-construction, rural revitalization, and local aid, with a total investment of RMB 5.02 million[210] Section VI. Significant Matters This section covers the company's commitments, particularly regarding avoiding horizontal competition and asset injection, significant related party transactions including daily operations and asset acquisitions, related party balances, and the performance of major contracts I. Fulfillment of Commitments The company continues to fulfill its commitment to avoid horizontal competition, extending the asset acquisition deadline to 2028, completing the Hangjin Energy acquisition, and initiating a new round of asset injections from China Energy Investment Corporation - As China Energy Investment Corporation's coal business integration platform, the company's commitment to avoid horizontal competition has been extended to August 27, 2028[215] - In February 2025, the acquisition of 100% equity in Hangjin Energy from China Energy Investment Corporation was completed[216] - In August 2025, the company initiated the acquisition of coal, pit-mouth coal-fired power, and coal-to-oil/gas/chemical related assets held by China Energy Investment Corporation to further reduce horizontal competition[216] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties during the Reporting Period During the reporting period, there was no non-operating fund occupation by the controlling shareholder or its related parties III. Irregular Guarantees During the reporting period, the company did not provide any guarantees in violation of decision-making procedures IV. Half-Year Report Audit Status On June 20, 2025, shareholders approved KPMG Huazhen and KPMG as auditors for the 2025 A-share and H-share reports, respectively, with no change in auditors or non-standard audit reports received during the period - On June 20, 2025, the company's general meeting of shareholders approved the appointment of KPMG Huazhen LLP and KPMG as the auditors for the company's 2025 A-share and H-share reports, respectively[217] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Previous Annual Report During the reporting period, there were no changes or handling of matters related to non-standard audit opinions in the previous annual report VI. Matters Related to Bankruptcy Reorganization During the reporting period, the company had no matters related to bankruptcy reorganization VII. Significant Litigation and Arbitration Matters During the reporting period, the Group had no significant litigation or arbitration matters, and management believes non-material cases will not significantly impact the Group's financial position - During the reporting period, the Group had no significant litigation or arbitration matters[219] VIII. Alleged Violations, Penalties, and Rectification of the Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller During the reporting period, there were no alleged violations, penalties, or rectification situations involving the company, its directors, supervisors, senior management, controlling shareholder, or actual controller IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller during the Reporting Period During the reporting period, neither the company nor its controlling shareholder, China Energy Investment Corporation, was listed as a severely dishonest enterprise or had unfulfilled large outstanding debts - During the reporting period, neither the company nor its controlling shareholder, China Energy Investment Corporation, was listed as a severely illegal and dishonest enterprise[220] - As of the end of the reporting period, the company had no unfulfilled obligations defined by effective legal documents from courts, nor did it have large outstanding debts that were due and unpaid[220] X. Significant Related Party Transactions This section details the company's daily related party transactions with China Energy Investment Corporation and China Railway Group, including product sales, service provision, financial services, and factoring, as well as the acquisition of Hangjin Energy and related party balances 1. Related Party Transactions Related to Daily Operations The company engaged in daily related party transactions with China Energy Investment Corporation and China Railway Group, with total sales to China Energy Investment Corporation amounting to RMB 45,409 million, representing 32.9% of total revenue - The Group's total sales of products and provision of services to China Energy Investment Corporation amounted to RMB 45,409 million, accounting for 32.9% of the Group's revenue during the reporting period[228] - The annual cap for the Group's provision of transportation services, coal supply, and other products and services to China Railway Group and its subsidiaries under the “Continuing Connected Transaction Framework Agreement” for 2025 was adjusted from RMB 7,400 million to RMB 15,000 million[229] Execution of Major Daily Related Party Transaction Agreements (H1 2025) | Agreement Name | Transaction Cap (RMB million) | Transaction Amount during Reporting Period (RMB million) | | :--- | :--- | :--- | | The Company's "Coal Mutual Supply Agreement" with China Energy Investment Corporation (Sales) | 110,000 | 36,966 | | The Company's "Coal Mutual Supply Agreement" with China Energy Investment Corporation (Purchases) | 27,000 | 3,983 | | The Company's "Product and Service Mutual Supply Agreement" with China Energy Investment Corporation (Sales) | 35,000 | 8,443 | | The Company's "Product and Service Mutual Supply Agreement" with China Energy Investment Corporation (Purchases) | 17,000 | 2,750 | | The Company's "Continuing Connected Transaction Framework Agreement" with China Railway Group (Sales) | 15,000 | 1,667 | | The Company's "Continuing Connected Transaction Framework Agreement" with China Railway Group (Purchases) | 20,000 | 4,710 | | The Company's "Financial Services Agreement" with Finance Company (Maximum Daily Balance of Comprehensive Credit Line) | 100,000 | 15,432 | | The Company's "Financial Services Agreement" with Finance Company (Maximum Daily Deposit Balance) | 75,000 | 74,885 | | The Company's New "Factoring Services Agreement" with Guoneng Factoring Company (Maximum Daily Balance of Factoring Services) | 5,000 | 2,888 | 2. Related Party Transactions Involving Asset or Equity Acquisitions and Disposals In February 2025, the company completed the acquisition of 100% equity in Hangjin Energy, with China Energy Investment Corporation committing to a cumulative net profit attributable to owners of no less than RMB 383.1027 million for Hangjin Energy from September 2024 to 2029 - On January 21, 2025, the company's Board approved the acquisition of 100% equity in Hangjin Energy held by China Energy Investment Corporation, with the transaction completed in February 2025[234] - China Energy Investment Corporation committed that Hangjin Energy's cumulative net profit attributable to owners of the parent company, after deducting non-recurring gains and losses and audited under China Accounting Standards, would be no less than RMB 383.1027 million for the period from September to December 2024 and the years 2025-2029[237] - For September-December 2024 and H1 2025, Hangjin Energy's net loss attributable to owners of the parent company, after deducting non-recurring gains and losses under China Accounting Standards, was RMB 260.8727 million[237] 3. Significant Related Party Transactions Involving Joint External Investments During the reporting period, the company had no significant related party transactions involving joint external investments 4. Related Party Receivables and Payables As of the end of the reporting period, the company's outstanding funds provided to related parties totaled RMB 74,890 million, primarily deposits with the finance company, while funds received from related parties totaled RMB 16,730 million, mainly loans from the finance company Related Party Receivables and Payables (RMB million) | Related Party | Relationship | Closing Balance of Funds Provided to Related Parties | Closing Balance of Funds Provided by Related Parties to Listed Company | | :--- | :--- | :--- | :--- | | China Energy Investment Corporation | Controlling Shareholder | - | 0 | | Finance Company | Subsidiary of Controlling Shareholder | 74,495 | 14,680 | | Other Related Parties | Other | 395 | 2,050 | | Total | | 74,890 | 16,730 | - Related party receivables and payables primarily arose from the Group's long-term and short-term borrowings from China Energy Investment Corporation, the Group's deposits/loans with the finance company, and entrusted loans provided by the Group through banks to its subsidiaries and associates[240] 5. Related Party Transactions with the Finance Company The finance company, a subsidiary of the controlling shareholder, provides financial services to the Group, with H1 2025 revenue of RMB 2,236 million and net profit of RMB 1,799 million, meeting all regulatory risk indicators Key Financial Indicators of Finance Company (H1 2025, Unaudited) | Indicator | Unit | H1 2025 | | :--- | :--- | :--- | | Operating Revenue | RMB million | 2,236 | | Total Profit | RMB million | 2,311 | | Net Profit | RMB million | 1,799 | | Total Assets (June 30, 2025) | RMB million | 307,723 | | Total Liabilities (June 30, 2025) | RMB million | 268,848 | | Owners' Equity (June 30, 2025) | RMB million | 38,875 | Key Risk Indicators of Finance Company (June 30, 2025) | No. | Monitoring Indicator | Indicator Requirement | June 30, 2025 | | :--- | :--- | :--- | :--- | | 1 | Capital adequacy ratio not lower than minimum regulatory requirement | ≥10.5% | 14.18% | | 2 | Liquidity ratio not lower than 25% | ≥25% | 46.08% | | 3 | Loan balance not higher than 80% of the sum of deposit balance and paid-in capital | ≤80% | 71.29% | | 4 | Total external liabilities not exceeding net capital | ≤100% | 0.00% | | 5 | Bill acceptance balance not exceeding 15% of total assets | ≤15% | 1.20% | | 6 | Bill acceptance balance not higher than 3 times interbank deposits | ≤300% | 20.32% | | 7 | Total bill acceptance and rediscounting not higher than net capital | ≤100% | 8.70% | | 8 | Acceptance bill margin balance not exceeding 10% of total deposits | ≤10% | 0.00% | | 9 | Total investment not higher than 70% of net capital | ≤70% | 47.35% | | 10 | Net fixed assets not higher than 20% of net capital | ≤20% | 0.02% | The Group's Deposit Business with Finance Company (H1 2025) | Related Party | Relationship | Maximum Daily Deposit Limit (RMB million) | Closing Balance (RMB million) | | :--- | :--- | :--- | :--- | | Finance Company | Subsidiary of Controlling Shareholder | 75,000 | 74,495 | The Group's Loan Business from Finance Company (H1 2025) | Related Party | Relationship | Loan Limit (RMB million) | Closing Balance (RMB million) | | :--- | :--- | :--- | :--- | | Finance Company | Subsidiary of Controlling Shareholder | 100,000 | 14,680 | 6. Other Significant Related Party Transactions During the reporting period, the company had no other significant related party transactions XI. Major Contracts and Their Performance This section discloses the company's significant guarantees, entrusted wealth management, and entrusted loan situations, including a total guarantee balance of RMB 40.32 million, primarily for Hulunbeier Liangyi Railway, and overdue entrusted loans of RMB 395.37 million to Yili Chemical 1. Custody, Contracting, and Leasing Matters During the reporting period, the company had no custody, contracting, or leasing matters 2. Significant Guarantees Performed and Outstanding during the Reporting Period As of the end of the reporting period, the Group's total guarantee balance was RMB 40.32 million, primarily a joint liability guarantee by Baorixile Energy for Hulunbeier Liangyi Railway, which is experiencing deteriorating operations Total Guarantee Amount (June 30, 2025) | Indicator | Amount (RMB million) | | :--- | :--- | | Total guarantee balance at end of reporting period (A) | 40.32 | | Total guarantee balance for subsidiaries at end of reporting period (B) | 0 | | Total guarantee amount (A+B) | 40.32 | | Percentage of total guarantee amount to net assets attributable to owners of the Company under China Accounting Standards at end of reporting period (%) | 0.01 | | Debt guarantee amount provided directly or indirectly for guaranteed parties with asset-liability ratio exceeding 70% (D) | 40.32 | | Total of the above three guarantee amounts (C+D+E) | 40.32 | - Baorixile Energy, a 56.61% owned subsidiary of the company, provided a joint and several liability guarantee for the syndicated loan of Hulunbeier Liangyi Railway Co., Ltd. (in which Baorixile Energy holds a 14.22% equity interest), with a maximum guarantee amount of RMB 67 million[258][381] - Liangyi Railway Co., Ltd.'s operating performance deteriorated, and Baorixile Energy has cumulatively injected RMB 11.82 million in capital and cumulatively repaid RMB 125.85 million in loan principal on a pro-rata basis; Baorixile Energy has fully provided for impairment on its equity interest in Liangyi Railway Co., Ltd. and the repaid amount[258][259] 3. Entrusted Cash Asset Management In H1 2025, the Group's entrusted wealth management amounted to RMB 17,300 million, with an outstanding balance of RMB 7,100 million in structured deposits, and overdue entrusted loans of RMB 395.37 million to associate Yili Chemical, which is secured Overall Entrusted Wealth Management (RMB million) | Product Type | Source of Funds | Amount Incurred during Reporting Period | Outstanding Balance at End of Reporting Period | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Structured Deposits | Own Funds | 17,300 | 7,100 | 0 | - All wealth management products purchased by the company in 2024 and maturing in H1 2025 had their principal fully recovered on maturity, realizing total income of RMB 59.3 million; wealth management products purchased in H1 2025 and maturing within the reporting period also had their principal fully recovered on maturity, realizing total income of RMB 37.78 million[266] Overall Entrusted Loans (RMB million) | Product Type | Source of Funds | Amount Incurred during Reporting Period | Outstanding Balance at End of Reporting Period | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Entrusted Loans | Own Funds | 395.37 | 0 | 395.37 | - The RMB 400.0 million entrusted loan from Shendong Power, a wholly-owned subsidiary of the company, to its associate Inner Mongolia Yili Chemical Industry Co., Ltd. matured on December 23, 2023; as of the end of the reporting period, Yili Chemical had repaid RMB 4.63 million of the principal, and the remaining entrusted loan has been secured through asset mortgages and other guarantee measures[272] Section VII. Share Changes and Shareholder Information This section details the company's unchanged share capital structure in H1 2025, including total ordinary shares, shareholder count, top ten shareholders, and major shareholders' equity and short positions I. Changes in Share Capital During the reporting period