兖矿能源(600188) - 2019 Q3 - 季度财报

Important Notice This section confirms the accuracy and completeness of the unaudited quarterly report, with guarantees from the board and financial officers Report Statement The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this unaudited quarterly report, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions[4] - The company's chairman, CFO, and head of the financial management department guarantee the truthfulness, accuracy, and completeness of the financial statements[4] - This company's Q3 2019 report is unaudited[4] Company Profile This section provides key financial data, shareholder information, and details on preferred stock as of the report period end Key Financial Data As of September 2019, total assets slightly decreased, but net assets attributable to shareholders grew by 9.05%, with year-to-date revenue and net profit increasing by 26.36% and 26.88% respectively Overview of Key Financial Data as of September 2019 | Indicator | As of Report Period End (Thousand Yuan) | As of Prior Year End (Thousand Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 197,572,917 | 203,679,900 | -3.00 | | Net Assets Attributable to Shareholders of Listed Company | 66,509,894 | 60,991,768 | 9.05 | | Year-to-Date (Jan-Sept) | | | | | Net Cash Flow from Operating Activities | 14,833,159 | 12,653,079 | 17.23 | | Operating Revenue | 150,611,076 | 119,190,485 | 26.36 | | Net Profit Attributable to Shareholders of Listed Company | 6,983,703 | 5,504,014 | 26.88 | | Weighted Average Return on Net Assets (%) | 10.71 | 9.51 | Increase 1.20 percentage points | | Basic Earnings Per Share (Yuan/share) | 1.4218 | 1.1205 | 26.89 | Non-Recurring Gains and Losses Items and Amounts (Thousand Yuan) | Item | Current Period Amount (July-Sept) | YTD Amount (Jan-Sept) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 10,283 | -13,221 | | Government Grants Recognized in Current Profit/Loss | 12,560 | 63,179 | | Funds Occupancy Fees Received from Non-Financial Enterprises Recognized in Current Profit/Loss | 18,430 | 71,718 | | Gains/Losses from Fair Value Changes and Investment Income from Disposal of Financial Assets | -9,969 | 42,391 | | Reversal of Impairment Provisions for Receivables and Contract Assets Subject to Separate Impairment Testing | 889 | 92,786 | | Other Non-Operating Income and Expenses | -49,623 | 195,081 | | Impact on Minority Interests (After Tax) | 8,039 | -14,581 | | Income Tax Impact | 6,036 | -102,359 | | Total | -3,355 | 334,994 | Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of Report Period End As of September 30, 2019, the company had 70,981 shareholders, with Yankuang Group Co., Ltd. and HKSCC Nominees Limited as the top two, holding 46.16% and 39.66% respectively, alongside disclosures of major shareholders' long and short positions in H-shares - As of September 30, 2019, the company had 70,981 shareholders[8] Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yankuang Group Co., Ltd. | 2,267,169,423 | 46.16 | State-owned Legal Person | | HKSCC Nominees Limited | 1,948,192,403 | 39.66 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 25,546,389 | 0.52 | Overseas Legal Person | | Agricultural Bank of China Co., Ltd. - Invesco Great Wall CSI 300 Enhanced Index Securities Investment Fund | 23,104,329 | 0.47 | Other | | New China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 018L - FH002 Shanghai | 21,957,897 | 0.45 | Other | Major Shareholders' H-Share Interests/Short Positions | Major Shareholder Name | Share Class | Capacity | Number of Shares Held | Nature of Interest | Percentage of Company's H-Share Class | | :--- | :--- | :--- | :--- | :--- | :--- | | Yankuang Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 2,267,169,423 | Long Position | - | | Yankuang Group | A-shares (State-owned Legal Person Shares) | Beneficial Owner | 391,507,272 | Short Position | - | | Yankuang Group | H-shares | Interest of Controlled Corporation | 374,989,000 | Long Position | 19.21% | | BNP Paribas Investment Partners SA | H-shares | Investment Manager | 117,641,207 | Long Position | 6.03% | | BlackRock, Inc. | H-shares | Interest of Controlled Corporation | 103,964,098 | Long Position | 5.33% | Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders as of Report Period End The company had no preferred shareholders as of the report period end - Not applicable[14] Significant Events This section details overall operating performance, significant changes in financial statement items, progress on major events, and disclosures regarding unfulfilled commitments or profit warnings Overall Operating Performance In the first three quarters of 2019, raw coal output slightly decreased by 0.43%, and commercial coal output by 2.26%, but commercial coal sales increased by 1.58%; railway transport volume and revenue declined, while methanol production and sales grew, power generation and sales decreased, and non-coal trade revenue significantly increased Overview of Key Products and Services Operating Data In the first three quarters of 2019, raw coal output slightly decreased by 0.43%, commercial coal output by 2.26%, but commercial coal sales increased by 1.58%; railway cargo volume decreased by 3.79%, power generation and sales by 10.85% and 10.88% respectively, while methanol production and sales grew by 3.24% and 3.87% Key Products and Services Operating Data for Q1-Q3 2019 | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Raw Coal Output (Thousand Tons) | 77,908 | 78,243 | -0.43 | | Commercial Coal Output (Thousand Tons) | 69,375 | 70,978 | -2.26 | | Commercial Coal Sales (Thousand Tons) | 83,992 | 82,689 | 1.58 | | Cargo Volume (Thousand Tons) | 14,834 | 15,419 | -3.79 | | Methanol Output (Thousand Tons) | 1,274 | 1,234 | 3.24 | | Methanol Sales (Thousand Tons) | 1,288 | 1,240 | 3.87 | | Power Generation (10,000 kWh) | 190,674 | 213,870 | -10.85 | | Power Sales (10,000 kWh) | 116,852 | 131,119 | -10.88 | Operating Performance of the Group's Main Business Segments Coal business saw slight decreases in raw and commercial coal output, notably at Heze Energy due to capacity adjustments and complex geology; overall commercial coal prices rose, but thermal coal prices for Yancoal Australia and Yancoal International declined; railway transport revenue and volume both decreased; coal chemical methanol production, sales, and revenue increased, though Yulin Energy's revenue fell; power generation and sales generally decreased, with Yulin Energy experiencing significant drops in power sales and revenue; non-coal trade revenue grew substantially - In Q1-Q3 2019, the Group produced 77.91 million tons of raw coal, a 0.4% year-on-year decrease, and 69.38 million tons of commercial coal, a 2.3% year-on-year decrease[15] - Heze Energy's raw coal and commercial coal output decreased by 27.76% and 27.88% year-on-year, primarily due to the implementation of new approved annual raw coal production capacity and complex geological conditions[16][17] Commercial Coal Sales for Q1-Q3 2019 | Business Segment | Q1-Q3 2019 Sales Volume (Thousand Tons) | Q1-Q3 2019 Sales Price (Yuan/Ton) | Q1-Q3 2018 Sales Volume (Thousand Tons) | Q1-Q3 2018 Sales Price (Yuan/Ton) | | :--- | :--- | :--- | :--- | :--- | | Company Washed Coal Subtotal | 11,995 | 841.21 | 10,689 | 773.02 | | Company Screened Raw Coal | 11,039 | 448.43 | 13,908 | 446.96 | | Heze Energy No. 2 Washed Coal | 1,451 | 1,138.23 | 2,121 | 1,014.80 | | Yancoal Australia Thermal Coal | 20,842 | 498.02 | 21,251 | 576.91 | | Yancoal International Thermal Coal | 4,159 | 373.57 | 4,472 | 405.87 | | Trading Coal | 17,666 | 624.15 | 12,753 | 624.59 | - In Q1-Q3 2019, the Group's coal business sales cost was RMB 28.111 billion, a 12.1% year-on-year increase; Heze Energy's per-ton coal sales cost increased by 31.16% year-on-year, mainly due to decreased commercial coal sales volume[19][20] - Railway transportation business cargo volume decreased by 3.8% year-on-year in Q1-Q3, revenue decreased by 4.7% year-on-year, and costs increased by 5.8% year-on-year[21] - Coal chemical business saw growth in both methanol output and sales, but Yulin Energy's sales revenue decreased by 26.94% year-on-year, and Ordos Energy's sales revenue decreased by 16.58% year-on-year[22][23] - Power business experienced declines in both power generation and sales, with Yulin Energy's power sales volume, sales revenue, and sales cost significantly decreasing, primarily due to a year-on-year reduction in external power sales[24] - Non-coal trade business achieved sales revenue of RMB 98.497 billion and sales cost of RMB 98.146 billion[25] - Equity investment business generated a profit of RMB 1.35 billion[26] Operating Performance of Yankuang Group Finance Co., Ltd. ("Yankuang Finance Company") during the Reporting Period Yankuang Finance Company experienced decreases in operating revenue and net profit in the first three quarters of 2019, but net assets grew while total assets decreased Yankuang Finance Company Operating Performance (Million Yuan) | Indicator | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 249 | 266 | -6.39 | | Net Profit | 142 | 146 | -2.74 | | Period-End Data | | | | | Net Assets | 1,630 | 1,488 | 9.54 | | Total Assets | 18,635 | 23,146 | -19.49 | Significant Changes and Reasons for Major Financial Statement Items and Financial Indicators The company experienced significant changes across multiple balance sheet, income statement, and cash flow statement items, including substantial increases in prepayments, inventory, and payables, alongside notable decreases in receivables, deferred tax assets/liabilities, and current non-current liabilities; income statement showed significant revenue and cost growth but reduced management, finance, and income tax expenses; cash flow from operations increased, while investment and financing cash flows significantly decreased Significant Changes and Reasons for Balance Sheet Items As of September 2019, prepayments surged by 165.22% year-on-year due to increased advance payments for exploration, mining rights, and trade; inventory grew by 44.24% driven by Qingdao Zhongyan and Yancoal International; notes payable increased by 146.48% from company and subsidiary increases; deferred tax assets and liabilities significantly decreased due to Yancoal Australia's presentation adjustments Significant Balance Sheet Item Changes (Million Yuan) | Item | Sept 30, 2019 | Dec 31, 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Notes Receivable | 3,118 | 4,429 | -29.60 | | Prepayments | 8,532 | 3,217 | 165.22 | | Inventories | 7,395 | 5,127 | 44.24 | | Deferred Income Tax Assets | 2,825 | 7,280 | -61.20 | | Other Non-Current Assets | 1,486 | 2,272 | -34.60 | | Notes Payable | 7,249 | 2,941 | 146.48 | | Contract Liabilities | 3,043 | 2,208 | 37.82 | | Non-Current Liabilities Due Within One Year | 4,104 | 7,195 | -42.96 | | Deferred Income Tax Liabilities | 3,286 | 8,122 | -59.54 | | Other Non-Current Liabilities | 1,952 | 427 | 357.14 | | Special Reserve | 3,952 | 3,046 | 29.74 | - Prepayments increased by 165.22%, primarily due to Ordos Energy's advance payment of RMB 1.156 billion for Yingpanhao Coal Mine exploration rights, Haosheng Coal's advance payment of RMB 1.200 billion for Shilaowusu Coal Mine mining rights, and increased advance trade and equipment payments by Qingdao Zhongyin Ruifeng, Smart Logistics, and Zhongyin Financial Leasing[27] - Deferred income tax assets and liabilities significantly decreased, mainly due to Yancoal Australia's adjustment of presentation methods[27][28] - Other non-current liabilities increased by 357.14%, primarily due to a RMB 1.461 billion increase in Zhongyin Financial Leasing's asset-backed securities balance[28] Significant Changes and Reasons for Income Statement Items In the first three quarters of 2019, operating revenue grew by 26.36% driven by significant increases in trading coal sales and other business revenue; operating costs rose by 36.05% consistent with increased trading coal and other business costs; management, finance, and income tax expenses all significantly decreased, with management expenses down 30.34% due to a prior-year one-time social insurance accrual, finance expenses down 40.25% from reduced interest and exchange losses, and income tax expenses down 38.86% due to changes in Yancoal Australia's deferred tax and taxable income Significant Income Statement Item Changes (Million Yuan) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | Primary Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 150,611 | 119,190 | 26.36 | Trading coal sales revenue increased by RMB 3.061 billion year-on-year; other business revenue increased by RMB 31.225 billion year-on-year | | Operating Cost | 129,952 | 95,521 | 36.05 | Trading coal sales cost increased by RMB 3.075 billion year-on-year; other business cost increased by RMB 31.444 billion year-on-year | | Administrative Expenses | 3,137 | 4,503 | -30.34 | A one-time accrual of social insurance expenses of RMB 1.006 billion in the first three quarters of 2018 | | Finance Expenses | 1,952 | 3,267 | -40.25 | Interest expenses decreased by RMB 337 million year-on-year; exchange losses decreased by RMB 762 million year-on-year | | Income Tax Expense | 2,154 | 3,523 | -38.86 | Yancoal Australia's income tax expense decreased by RMB 1.610 billion year-on-year due to changes in deferred tax and taxable income from the acquisition of Coal & Allied Industries Limited | Changes and Reasons for Cash Flow Statement Items In the first three quarters of 2019, net cash flow from operating activities increased by 17.23% year-on-year, primarily due to a significant rise in cash received from sales of goods and services; net cash flow from investing activities decreased year-on-year, influenced by reduced cash recovered from disposals of fixed assets, intangible assets, and other long-term assets, and increased cash paid for acquiring such assets; net cash flow from financing activities significantly decreased year-on-year, mainly due to reduced cash from investments and borrowings, lower cash paid for debt repayment, and increased cash paid for other financing activities Cash Flow Statement Item Changes (Million Yuan) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change (%) | Primary Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 14,833 | 12,653 | 17.23 | Cash received from sales of goods and provision of services increased by RMB 34.970 billion year-on-year | | Net Cash Flow from Investing Activities | -3,254 | -2,481 | - | Net cash recovered from disposal of fixed assets, intangible assets, and other long-term assets decreased by RMB 2.460 billion year-on-year; cash paid for acquisition of fixed assets, intangible assets, and other long-term assets increased by RMB 2.495 billion year-on-year | | Net Cash Flow from Financing Activities | -19,337 | -9,326 | - | Cash received from investments decreased by RMB 4.963 billion year-on-year; cash received from borrowings decreased by RMB 8.832 billion year-on-year; cash paid for debt repayment decreased by RMB 10.825 billion year-on-year; cash paid for other financing activities increased by RMB 6.373 billion year-on-year | | Net Increase in Cash and Cash Equivalents | -8,325 | 1,247 | -767.60 | - | Analysis of Progress, Impact, and Solutions for Significant Events During the reporting period, the company made progress on several significant matters, including favorable outcomes or plaintiff withdrawals in some lawsuits, though others were remanded for retrial or appealed; related-party transactions involved signing a financial services agreement and jointly increasing capital for Yankuang Finance Company with Yankuang Group, and a diesel fuel supply agreement with Glencore Group by a subsidiary; other key events included terminating A-share private placement, acquiring Yankuang Finance Company equity, organizational restructuring, establishing a shipping industry investment fund, capital increases for Ordos Energy and Yingpanhao Company, re-appointing a securities representative, proposing an interim cash dividend, and forming Yankuang Smart Ecological Investment Development Co., Ltd Litigation and Arbitration The company is involved in multiple lawsuits; in the CCB Guhuai Road Branch financial loan dispute, the company appealed after losing at first instance, and the Shandong High Court remanded for retrial; in the company's sales contract dispute against Changjin Hao, the company won at first instance but appealed for not achieving litigation objectives; in Zikuang Yunxiao Company's sales contract dispute against the company, the company won; in two contract disputes by Xiamen Xinda against Zhongyin Logistics and the company, the plaintiffs withdrew, and the company reported suspected seal forgery to the police - In the financial loan dispute case filed by China Construction Bank Guhuai Road Branch against Yanzhou Coal Mining, the Shandong High Court ruled to remand the case to Jining Intermediate People's Court for retrial, with no ruling yet issued[33][34] - In the sales contract dispute case filed by Yanzhou Coal Mining against Shandong Changjin Hao Coal Industry Co., Ltd., Jining Intermediate People's Court ruled in favor of the company at first instance, and the company has appealed to the Shandong High Court[34] - In the sales contract dispute case filed by Shandong Zikuang Coal Sales Co., Ltd. against Yanzhou Coal Mining, Jining Intermediate People's Court ruled to dismiss the plaintiff's claims, with Yanzhou Coal Mining winning the case[35] - In two contract dispute cases filed by Xiamen Xinda Co., Ltd. against Shandong Zhongyin Logistics Co., Ltd. and Yanzhou Coal Mining, the plaintiffs have both withdrawn their lawsuits; the company has reported suspected contract fraud involving forged seals to the public security authorities, and the case has been accepted[35][36][37] Significant Related Party Transactions The company engaged in multiple related-party transactions with Yankuang Group and its subsidiaries, including a financial services agreement and a joint capital increase of RMB 1.5 billion for Yankuang Finance Company (company contributed RMB 1.425 billion), and a diesel fuel supply agreement between subsidiary Hunter Valley Operations and a Glencore Group subsidiary - The company signed a 'Financial Services Agreement' with Yankuang Group, stipulating that Yankuang Finance Company will provide financial services to Yankuang Group, with a defined transaction cap[37] - The company and Yankuang Group jointly increased the registered capital of Yankuang Finance Company by RMB 1.5 billion in cash, proportionate to their shareholdings, with the company contributing RMB 1.425 billion[38] - The company's subsidiary, Hunter Valley Operations, signed a 'Diesel Fuel Supply Agreement' with a Glencore Group subsidiary, setting annual transaction caps for 2019-2021[39] Other Significant Events The company terminated its A-share private placement plan and completed the acquisition of a 5% equity stake in Yankuang Finance Company; organizational adjustments included abolishing the Coal Mine Rock Burst Prevention Research Center and establishing a Rock Burst Prevention Office and an Ecological Restoration Comprehensive Management Office; additionally, the company established the Blue Gold Shipping Industry Investment Fund, increased capital by RMB 2.7 billion for Ordos Energy and Yingpanhao Company, re-appointed a securities representative, proposed an interim cash dividend of RMB 4.912 billion for 2019, and formed a wholly-owned subsidiary, Yankuang Smart Ecological Investment Development Co., Ltd., with a registered capital of RMB 80 million - The company terminated its non-public issuance of A-shares and withdrew application documents, primarily due to changes in capital market conditions and financing timing[40][41] - The company acquired a 5% equity stake in Yankuang Finance Company held by China Credit Trust Co., Ltd. for RMB 78 million, completing equity transfer and business registration changes on August 7, 2019[42] - The company abolished the Coal Mine Rock Burst Prevention Research Center and established a Rock Burst Prevention Office and an Ecological Restoration Comprehensive Management Office to strengthen rock burst management and promote ecological restoration[43] - The company, through Yancoal International, jointly established the Blue Gold Shipping Industry Investment Fund with Shandong Shipping Asset Management, with a total scale of USD 60 million, and Yancoal International contributing USD 50 million[44][45] - The company increased the registered capital of Ordos Energy by RMB 2.7 billion in cash, and Ordos Energy in turn increased capital for Yingpanhao Company by RMB 2.7 billion[46] - The company's board of directors proposed an interim cash dividend (special dividend) of RMB 4.912 billion (tax inclusive) for 2019, equivalent to RMB 10.00 (tax inclusive) per 10 shares[48] - The company established a wholly-owned subsidiary, Yankuang Smart Ecological Investment Development Co., Ltd., with a registered capital of RMB 80 million, primarily engaged in ecological restoration, industrial project investment, and management[49] Overdue Unfulfilled Commitments during the Reporting Period The company had no overdue unfulfilled commitments during the reporting period - Not applicable[50] Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Prior Year-End to Next Reporting Period End The company had no warnings regarding potential cumulative net profit loss or significant changes during the reporting period - Not applicable[50] Appendix This section includes the unaudited financial statements, adjustments for the first-time adoption of new accounting standards, and a note on the absence of an audit report Financial Statements The appendix includes the company's consolidated and parent company balance sheets as of September 30, 2019, consolidated and parent company income statements for January-September and Q3 2019, and consolidated and parent company cash flow statements for January-September 2019, all unaudited - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, and parent company cash flow statement[52][55][59][62][65][68] - All financial statements are unaudited[52][59][62][65][68] Adjustments to Financial Statement Items at the Beginning of the First Year of Adoption of New Financial Instruments, Revenue, and Lease Standards Effective January 1, 2019, the company adopted "Accounting Standard for Business Enterprises No. 21 – Leases (Revised)," adjusting relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption, without restating comparative period information, primarily affecting fixed assets, right-of-use assets, current non-current liabilities, and lease liabilities - The Group adopted 'Accounting Standard for Business Enterprises No. 21 – Leases (Revised)' effective January 1, 2019[76][80] - Under the new lease standard, lessees no longer classify leases as operating or finance leases, but instead apply a unified accounting model[76][80] - The cumulative impact of first-time adoption of the new lease standard adjusted relevant financial statement items at the beginning of the year, with no adjustment to comparative period information[76][80] Key Adjustment Items in Consolidated Balance Sheet (Thousand Yuan) | Item | Dec 31, 2018 | Jan 1, 2019 Adjustment | | :--- | :--- | :--- | | Fixed Assets | 44,293,193 | -345,175 | | Right-of-Use Assets | - | 711,173 | | Non-Current Liabilities Due Within One Year | 7,194,915 | 119,273 | | Lease Liabilities | - | 388,311 | | Long-Term Payables | 355,169 | -141,586 | Explanation of Retrospective Adjustment of Prior Comparative Data for First-Time Adoption of New Financial Instruments and Lease Standards The company only adjusted relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption of the new lease standard, without retrospectively adjusting prior comparative data - The Group adjusted relevant financial statement items at the beginning of the year for the cumulative impact of first-time adoption of the new lease standard, with no adjustment to comparative period information[80] Audit Report This quarterly report does not include an audit report - Not applicable[80]