兖矿能源(600188) - 2018 Q4 - 年度财报

Definitions This section provides definitions for key terms and abbreviations used throughout the report Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents key financial data and indicators for recent years Company Basic Information 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] Key Accounting Data and Financial Indicators for the Past Three Years 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 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][21] 2018 Quarterly Financial Data 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 This section outlines the company's primary business segments, operating models, industry conditions, and core competitive advantages Main Businesses, Operating Model, and Industry Conditions 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] - 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] Analysis of Core Competencies 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] - 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] - 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] Chairman's Report 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 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] - 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] 2019 Development Outlook 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] - 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] - 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] Management Discussion and Analysis 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 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] - Haosheng Coal's production significantly decreased year-on-year due to the impact of safety and environmental protection policies[35] Main Business Analysis 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] Analysis of Expenses and Other Items 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][61] - 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][61] - 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][61] Cash Flow Analysis 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] - 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] Analysis of Assets and Liabilities 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] - 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] - 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] Coal Reserves 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 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 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] Future Development and Capital Expenditure Plan 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] Significant Events This section details important corporate actions, including profit distribution plans, major litigation, equity incentive schemes, and significant related party transactions Profit Distribution Plan 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 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] - 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] - 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][123] Equity Incentive Plan 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][128] - 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][130][131] Significant Related Party Transactions 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] - 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][142] Other Significant Matters 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][162] - Financial Investments: Completed investment in Linshang Bank, holding 19.75% equity; increased stake in Zheshang Bank H-shares to 4.99%[163][167] - Capital Operations: Controlled subsidiary Yancoal Australia successfully listed on the Hong Kong Stock Exchange on December 6, 2018, stock code 03668[169] - 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][172] Changes in Share Capital and Shareholder Information 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 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] - The actual controller is the Shandong Provincial State-owned Assets Supervision and Administration Commission[221] Directors, Supervisors, Senior Management, and Employees 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 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][237] - Some directors and supervisors, including Chairman Li Xiyong and Vice Chairman Li Wei, received remuneration from related party Yankuang Group[226] Employee Information 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] Corporate Governance 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 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] - 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] - 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] Corporate Bonds Information This section provides an overview of the company's outstanding corporate bonds, including their terms, credit ratings, and repayment capabilities Overview of Corporate Bonds 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] - 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] Financial Report This section presents the audited financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements Audit Report 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] - 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][311][312] Financial Statements 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 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] - 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] - 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][439][440] Reference Documents This section lists all documents available for public inspection, including the audited financial statements and other regulatory filings