兖矿能源(600188) - 2020 Q2 - 季度财报

Definitions This section provides definitions for frequently used terms in the report, ensuring clarity on company names, shareholders, subsidiaries, and accounting standards - The company is referred to as 'Yanzhou Coal Mining', with its H-shares and A-shares listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, respectively[7] - The controlling shareholder is Yankuang Group Co, Ltd, which directly and indirectly holds 56.01% of the company's shares[7] - The report lists key subsidiaries and their primary operations, including Yulin Neng Hua, Heze Neng Hua, and Yancoal Australia[7][9] Company Profile and Key Financial Indicators This section presents the company's basic information, stock profile, and key financial data for H1 2020, highlighting revenue growth but a sharp decline in net profit - The company's legal name is Yanzhou Coal Mining Company Limited, and the legal representative is Li Xiyong[10] - The company's A-shares are listed on the Shanghai Stock Exchange under the stock code 600188; H-shares are listed on the Hong Kong Stock Exchange under the stock code 01171[15] Key Accounting Data for H1 2020 (Unit: CNY '000) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,613,418 | 105,975,591 | 3.43 | | Net Profit Attributable to Shareholders | 4,599,867 | 5,360,854 | -14.20 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,261,801 | 5,022,505 | -54.97 | | Net Cash Flow from Operating Activities | -1,556,885 | 11,920,967 | -113.06 | | Net Assets Attributable to Shareholders (End of Period) | 65,533,028 | 63,291,840 | 3.54 | | Total Assets (End of Period) | 218,370,843 | 207,821,363 | 5.08 | Key Financial Indicators for H1 2020 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.9381 | 1.0914 | -14.05 | | Basic EPS (Excluding Non-recurring Items) (CNY/share) | 0.4613 | 1.0225 | -54.89 | | Weighted Average Return on Equity (%) | 6.98 | 8.36 | Decrease of 1.38 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 3.43 | 7.83 | Decrease of 4.40 percentage points | - During the reporting period, the financial statements of Qingdao Duanxin Asset Management Co, Ltd and Yankuang Smart Ecology Co, Ltd were newly consolidated[19] - Differences between domestic and international accounting standards primarily relate to the measurement of business combinations under common control, recognition of special reserves, presentation of perpetual capital bonds, reversibility of long-term asset impairment provisions, and fair value adjustments of intangible assets in business combinations not under common control[23] Non-recurring Profit and Loss Items and Amounts for H1 2020 (Unit: CNY '000) | Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 58 | | Government Grants Included in Current Profit or Loss | 63,697 | | Gain from Investment Cost Being Less Than Fair Value of Identifiable Net Assets in Acquired Subsidiaries, Associates, and Joint Ventures | 3,854,861 | | Fair Value Changes in Financial Instruments and Investment Income from Disposal | 62,141 | | Reversal of Impairment Provisions for Individually Tested Receivables and Contract Assets | 47,886 | | Gains/Losses from Entrusted Loans | 55 | | Fair Value Changes in Investment Properties Measured at Fair Value | 9,606 | | Other Non-operating Income and Expenses | 78,540 | | Other Items Defined as Non-recurring Profit or Loss | -396,527 | | Minority Interest Impact | -1,313,529 | | Income Tax Impact | -68,722 | | Total | 2,338,066 | Business Overview This section outlines the company's primary operations in coal, chemicals, equipment manufacturing, and power, detailing its response to market volatility in H1 2020 - The company's main businesses include coal (a major producer, seller, and trader in China and Australia), coal chemicals (mainly methanol), electromechanical equipment manufacturing (hydraulic supports, roadheaders, shearers), and power and heat (seven power plants with a total installed capacity of 482MW)[28] - In H1 2020, the global COVID-19 pandemic led to a sluggish macroeconomic environment and increased volatility in the coal market, though supply and demand gradually rebalanced[28] - The company enhanced its core competitiveness by deepening institutional innovation, optimizing its industrial structure, and strengthening lean management, achieving breakthroughs in coal resource acquisition and intelligent mine construction[30] Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes H1 2020 performance by business segment, financial statement changes, and key risks, noting increased coal sales but lower prices Overview of Operations In H1 2020, the company saw increased production and sales volumes for coal, methanol, and electricity, while railway transport volume declined Key Business Production and Sales Volumes for H1 2020 ('000 tons / 10,000 kWh) | Item | H1 2020 | H1 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Saleable Coal Production ('000 tons) | 50,108 | 46,991 | 3,116 | 6.63 | | Saleable Coal Sales ('000 tons) | 67,620 | 55,288 | 12,333 | 22.31 | | Freight Volume ('000 tons) | 8,900 | 10,394 | -1,493 | -14.37 | | Methanol Production ('000 tons) | 935 | 846 | 90 | 10.59 | | Methanol Sales ('000 tons) | 934 | 834 | 100 | 11.97 | | Power Generation (10,000 kWh) | 141,701 | 132,089 | 9,612 | 7.28 | | Electricity Sales (10,000 kWh) | 89,437 | 79,327 | 10,110 | 12.74 | - In the first half of the year, the company sold 67.62 million tons of saleable coal, including 48.22 million tons of self-produced coal, achieving 48.2% of the annual sales target for self-produced coal[31] Analysis of Business Segments This analysis covers segment performance, highlighting increased coal sales offset by lower prices, a significant rise in investment income, and negative operating cash flow Coal Business In H1, coal production and sales volumes grew by 6.63% and 22.31% respectively, while sales revenue increased by 7.3% due to lower average selling prices Saleable Coal Production in H1 2020 ('000 tons) | Entity | H1 2020 | H1 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Company | 15,731 | 15,660 | 70 | 0.45 | | Shanxi Neng Hua | 750 | 839 | -89 | -10.58 | | Heze Neng Hua | 1,596 | 1,235 | 361 | 29.25 | | Ordos Neng Hua | 7,441 | 7,443 | -2 | -0.03 | | Haosheng Coal Industry | 3,477 | 1,189 | 2,287 | 192.38 | | Yancoal Australia | 18,428 | 17,849 | 578 | 3.24 | | Yancoal International | 2,686 | 2,776 | -90 | -3.25 | | Total | 50,108 | 46,991 | 3,116 | 6.63 | - Haosheng Coal Industry's saleable coal production increased by 192.38% year-on-year, as production at its Shilausu Coal Mine was restricted by safety and environmental policies in H1 2019[33] - In H1, coal sales volume was 67.62 million tons, a year-on-year increase of 12.33 million tons or 22.3%; coal business sales revenue was CNY 33.498 billion, a year-on-year increase of CNY 2.278 billion or 7.3%[33] Coal Sales Price and Revenue in H1 2020 (CNY/ton, CNY million) | Operating Entity | 2020 Sales Price (CNY/ton) | 2020 Sales Revenue (CNY million) | 2019 Sales Price (CNY/ton) | 2019 Sales Revenue (CNY million) | | :--- | :--- | :--- | :--- | :--- | | Company | 525.78 | 8,332 | 655.65 | 10,584 | | Shanxi Neng Hua | 280.91 | 206 | 317.71 | 270 | | Heze Neng Hua | 878.70 | 1,395 | 1,146.62 | 949 | | Ordos Neng Hua | 228.31 | 1,407 | 269.18 | 1,756 | | Haosheng Coal Industry | 278.81 | 971 | 329.59 | 387 | | Yancoal Australia | 464.78 | 8,249 | 584.43 | 9,694 | | Yancoal International | 359.68 | 958 | 384.42 | 1,062 | | Traded Coal | 617.64 | 11,980 | 625.43 | 6,518 | | Group Total | 495.38 | 33,498 | 564.68 | 31,220 | - In H1, coal sales were primarily concentrated in the markets of China (50,659 thousand tons, CNY 25,642 million), Japan (3,878 thousand tons, CNY 2,045 million), South Korea (2,011 thousand tons, CNY 1,062 million), Singapore (4,588 thousand tons, CNY 1,702 million), and Australia (3,745 thousand tons, CNY 1,498 million)[37] - Most coal products were sold to the power (CNY 10,676 million), metallurgy (CNY 2,709 million), chemical (CNY 2,505 million), and trading (CNY 16,255 million) industries[38] - The cost of coal sales in H1 was CNY 24.225 billion, an increase of CNY 6.557 billion or 37.1% year-on-year, mainly due to the increase in coal sales volume[39] - The cost of sales per ton for Haosheng Coal Industry decreased year-on-year, primarily due to the increase in saleable coal sales volume[40] Railway Transportation Business In H1, both freight volume and revenue from the railway transportation business decreased by 14.4% year-on-year, while costs decreased by 1.8% - In H1, railway assets completed a freight volume of 8.9 million tons, a year-on-year decrease of 14.4%[41] - Railway transportation business revenue was CNY 184 million, a year-on-year decrease of 14.4%[41] - The cost of the railway transportation business was CNY 82.502 million, a year-on-year decrease of 1.8%[41] Coal Chemical Business In H1, methanol production increased by 10.59% year-on-year, while both Yulin Neng Hua and Ordos Neng Hua saw declines in methanol sales revenue and costs Coal Chemical Production and Sales in H1 2020 ('000 tons) | Entity | H1 2020 Methanol Production | H1 2019 Methanol Production | Change (%) | H1 2020 Methanol Sales | H1 2019 Methanol Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 387 | 371 | 4.58 | 381 | 373 | 2.14 | | Ordos Neng Hua | 548 | 475 | 15.28 | 553 | 461 | 19.91 | Coal Chemical Sales Revenue and Costs in H1 2020 (CNY '000) | Entity | H1 2020 Sales Revenue | H1 2019 Sales Revenue | Change (%) | H1 2020 Cost of Sales | H1 2019 Cost of Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yulin Neng Hua | 497,399 | 639,321 | -22.20 | 400,877 | 519,301 | -22.80 | | Ordos Neng Hua | 718,550 | 774,797 | -7.26 | 447,145 | 576,751 | -22.47 | Power Business In H1, both power generation and electricity sales volumes increased, with Huaju Energy reporting growth in sales and revenue, while Yulin Neng Hua saw a significant drop in external power sales Power Business Production and Sales in H1 2020 (10,000 kWh) | Entity | H1 2020 Power Generation | H1 2019 Power Generation | Change (%) | H1 2020 Electricity Sales | H1 2019 Electricity Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 41,288 | 39,746 | 3.88 | 14,478 | 12,267 | 18.03 | | Yulin Neng Hua | 16,642 | 14,806 | 12.40 | 748 | 983 | -23.90 | | Heze Neng Hua | 83,772 | 77,537 | 8.04 | 74,211 | 66,077 | 12.31 | Power Business Sales Revenue and Costs in H1 2020 (CNY '000) | Entity | H1 2020 Sales Revenue | H1 2019 Sales Revenue | Change (%) | H1 2020 Cost of Sales | H1 2019 Cost of Sales | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaju Energy | 59,456 | 49,031 | 21.26 | 45,762 | 42,208 | 8.42 | | Yulin Neng Hua | 1,445 | 1,870 | -22.73 | 2,508 | 3,864 | -35.10 | | Heze Neng Hua | 260,617 | 232,484 | 12.10 | 181,542 | 193,162 | -6.02 | - Yulin Neng Hua's power product sales, revenue, and costs decreased significantly due to a year-on-year reduction in external electricity sales[45] Heat Business In H1, the company produced 650,000 steam tons of heat, sold 200,000 steam tons, and generated sales revenue of CNY 20.818 million with costs of CNY 18.938 million - In H1, the company produced 650,000 steam tons of heat and sold 200,000 steam tons[46] - Sales revenue was CNY 20.818 million, with a cost of sales of CNY 18.938 million[46] Electromechanical Equipment Manufacturing Business In H1, the electromechanical equipment manufacturing business achieved sales revenue of CNY 85.065 million and a cost of sales of CNY 60.235 million - In H1, the electromechanical equipment manufacturing business achieved sales revenue of CNY 85.065 million and a cost of sales of CNY 60.235 million[46] Non-Coal Trading Business In H1, the non-coal trading business generated sales revenue of CNY 72.248 billion and a cost of sales of CNY 72.049 billion - In H1, the non-coal trading business generated sales revenue of CNY 72.248 billion and a cost of sales of CNY 72.049 billion[47] Equity Investment Business In H1, the equity investment business realized an investment income of CNY 4.065 billion - In H1, the equity investment business realized an investment income of CNY 4.065 billion[47] Analysis of Changes in Financial Statement Items Operating revenue grew by 3.43% while operating costs rose by 8.33%, and net operating cash flow turned negative, though investment income surged due to an acquisition Changes in Financial Statement Items in H1 2020 (Unit: CNY million) | Item | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,613 | 105,976 | 3.43 | | Operating Costs | 98,874 | 91,271 | 8.33 | | Selling Expenses | 2,715 | 2,842 | -4.50 | | Administrative Expenses | 2,208 | 1,985 | 11.26 | | Finance Costs | 1,080 | 1,354 | -20.24 | | R&D Expenses | 84 | 79 | 6.56 | | Net Cash Flow from Operating Activities | -1,557 | 11,921 | -113.06 | | Net Cash Flow from Investing Activities | -3,734 | -2,021 | - | | Net Cash Flow from Financing Activities | 1 | -14,329 | - | | Investment Income | 4,065 | 1,095 | 271.17 | - The change in finance costs was mainly due to a CNY 157 million year-on-year decrease in interest expense and a CNY 83 million increase in foreign exchange gains[49] - The change in net cash flow from operating activities was primarily influenced by financial services from Yankuang Finance Company (net outflow of CNY 7.137 billion) and a CNY 7.005 billion year-on-year increase in cash paid for goods and services[49] - The significant increase in investment income was mainly due to gaining control of the Moraben Coal Joint Venture, which required re-measuring the previously held 85% equity at fair value, resulting in a recognized investment income of CNY 3.401 billion[49] Significant Profit Changes from Non-Core Business The period's significant profit change was driven by the acquisition of a 10% stake in the Moraben Coal Joint Venture, which generated a one-time gain and a fair value re-measurement gain - The acquisition of a 10% stake in the Moraben Coal Joint Venture resulted in a one-time gain of CNY 454 million, increasing the net profit attributable to parent company shareholders by CNY 282 million year-on-year[51] - Gaining control of the Moraben Coal Joint Venture led to the re-measurement of the previously held 85% equity at fair value, recognizing an investment income of CNY 3.401 billion and increasing the net profit attributable to parent company shareholders by CNY 2.118 billion year-on-year[52] Analysis of Assets and Liabilities At the end of the period, accounts receivable, inventories, short-term borrowings, and bonds payable all increased, with a significant amount of restricted assets Changes in Assets and Liabilities in H1 2020 (Unit: CNY million) | Item | End of Current Period | % of Total Assets | End of Prior Period | % of Total Assets | Change from Prior Period-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 7,527 | 3.45 | 4,495 | 2.16 | 67.45 | Increase in receivables from the Company, Yancoal International, Shandong Zhongyin International Trade, and Qingdao Zhongyin Ruifeng | | Prepayments | 4,877 | 2.23 | 3,484 | 1.68 | 39.98 | Increase in prepayments by the Company, Qingdao Zhongyin Ruifeng, Smart Logistics, and Yulin Neng Hua | | Inventories | 9,238 | 4.23 | 7,300 | 3.51 | 26.54 | Increase in inventories at Qingdao Zhongyan, Donghua Heavy Industry, and Smart Logistics | | Short-term Borrowings | 13,994 | 6.41 | 8,748 | 4.21 | 59.98 | Increase in short-term borrowings by the Company, Yancoal International, Qingdao Zhongyin Ruifeng, and Smart Logistics | | Contract Liabilities | 3,566 | 1.63 | 2,717 | 1.31 | 31.23 | Increase in contract liabilities at the Company, Qingdao Zhongyin Ruifeng, and Smart Logistics | | Bonds Payable | 19,589 | 8.97 | 14,567 | 7.01 | 34.47 | Issuance of Yanzhou Coal Mining 2020 Corporate Bonds (First Tranche) increased bonds payable by CNY 5 billion | | Deferred Tax Liabilities | 4,273 | 1.96 | 3,301 | 1.59 | 29.44 | Yancoal Australia's deferred tax liabilities increased by CNY 1.21 billion, while Yancoal International's decreased by CNY 239 million | - As of June 30, 2020, the Group's restricted assets amounted to CNY 56.85 billion, mainly including restricted cash, pledged accounts receivable financing, and assets mortgaged for loans[55] - As of June 30, 2020, equity attributable to parent company shareholders was CNY 55.497 billion, total borrowings were CNY 74.088 billion, and the debt-to-equity ratio was 133.5%[56] Investment Analysis During the reporting period, the company completed the acquisition of a 10% stake in the Moraben Coal Joint Venture and disclosed its financial assets at fair value - During the reporting period, the Group acquired the 10% interest in the Moraben Coal Joint Venture held by Sojitz Moraben Resources[58] - At the end of the reporting period, the Group's financial assets measured at fair value through profit or loss were mainly the special royalty rights of Zhongshan Mine, investment properties of Wuxi Dingye, and equity investments, with an initial investment cost of CNY 2.425 billion and a period-end balance of CNY 1.841 billion[59] - At the end of the reporting period, financial liabilities measured at fair value through profit or loss were mainly interest rate swap agreements and non-contingent royalties, with a period-end balance of CNY 155 million[59] Major Asset and Equity Sales The company sold 100% equity in its international trading subsidiaries to focus on its core coal business and enhance competitiveness - During the reporting period, the Group sold 100% of its equity in Yancoal International Trading Co, Ltd and Yancoal International (Singapore) Co, Ltd to Yankuang Alumina (Hong Kong) Co, Ltd[60] - This transaction helps the company further focus on its core coal business and enhance its core competitiveness, with a minor impact on the company's total profit[60] Analysis of Major Subsidiaries and Associates Yancoal Australia's net profit surged due to an acquisition, while other subsidiaries' results varied with coal sales volumes and market prices Financial Data of Major Subsidiaries in H1 2020 (Unit: CNY million) | Company Name | Registered Capital | Total Assets at June 30, 2020 | Net Assets at June 30, 2020 | Net Profit in H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Yancoal Australia | AUD 6,027 million | 56,032 | 31,559 | 3,646 | - Yancoal Australia's net profit for H1 2020 was CNY 3.646 billion, compared to CNY 2.746 billion in the prior year period, mainly due to gains from the acquisition of a 10% stake in the Moraben Coal Joint Venture, though operating profit decreased due to lower coal prices[63] - Heze Neng Hua's net profit for H1 2020 was CNY 484 million, compared to CNY 278 million in the prior year period, mainly due to an increase in coal sales volume[64] - Ordos Neng Hua reported a net loss of CNY 38 million for H1 2020, compared to a net profit of CNY 212 million in the prior year period, mainly due to a year-on-year decrease in coal market prices[64] - Haosheng Coal Industry's net profit for H1 2020 was CNY 71 million, compared to a net loss of CNY 187 million in the prior year period, mainly due to an increase in coal sales volume[65] Yankuang Finance Company Operating Indicators for H1 2020 (Unit: CNY million) | Indicator | End of Current Period / Current Period | Beginning of Current Period / Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Deposit Balance | 18,133 | 21,510 | -15.70 | | Loan Balance | 11,763 | 11,006 | 6.87 | | Operating Revenue | 283 | 252 | 12.18 | | Net Profit | 118 | 94 | 25.53 | | Net Assets | 3,267 | 3,149 | 3.73 | | Total Assets | 21,496 | 24,694 | -12.95 | Information on Structured Entities Controlled by the Company Yancoal Australia's subsidiary, Watagan Mining Company, is a special purpose entity established for overseas asset securitization - Yancoal Australia's subsidiary, Watagan Mining Company Pty Limited, is a special purpose entity established for overseas asset securitization, with three coal mines in New South Wales, Australia as the underlying assets[69] Other Disclosures This section details risks and mitigation strategies, capital expenditure plans, H2 2020 outlook, and the impact of foreign exchange fluctuations - The company faces safety risks, with countermeasures including improving the safety control system, promoting intelligent upgrades, strengthening special rectification of safety hazards, and enhancing safety assessment and accountability[70] - The company faces exchange rate risks, with countermeasures including strengthening analysis of exchange rate trends, using various financial instruments to reduce fluctuation risks, and entering into forward foreign exchange contracts[71] - The company faces credit risks, with countermeasures including strengthening customer admission management, dynamically monitoring credit business, timely activating response mechanisms, and using legal means when necessary[72] - The company faces geopolitical risks, with countermeasures including closely monitoring international developments, strengthening analysis of the political and economic situation in business locations, and adhering to a localization strategy[73] 2020 Capital Expenditure Plan (Unit: CNY 10,000) | Item | H1 2020 | 2020 Plan | | :--- | :--- | :--- | | Total | 142,238 | 990,430 | | Of which: Infrastructure Projects | 52,404 | 490,618 | | Sustaining Capital | 58,816 | 368,712 | | Safety Production Plan | 6,166 | 86,172 | | Technical Improvement Plan | 24,852 | 44,928 | - In H1 2020, coal exploration expenditure was CNY 3.93 million, and capital expenditure related to coal development and mining was approximately CNY 980 million[76] - The operating strategy for H2 includes seizing development opportunities, optimizing production organization, deepening lean management, optimizing product structure, and stimulating synergies to cope with the complex macroeconomic situation[77] - Due to exchange rate fluctuations, the Group generated a book foreign exchange gain of CNY 120 million during the reporting period[78] - The company and its subsidiaries in mainland China are subject to corporate income tax rates of 25% or 15%, while Yancoal Australia is subject to 30% and Yancoal International is subject to 16.5%[80] Significant Events This section covers key events in H1 2020, including shareholder meetings, litigation, related-party transactions, and the fulfillment of commitments Summary of Shareholders' Meetings The company held its 2019 Annual General Meeting and the first A-share and H-share class meetings for 2020 on June 19, 2020 - The 2019 Annual General Meeting, the first A-share class meeting of 2020, and the first H-share class meeting of 2020 were held on June 19, 2020[81] Profit Distribution or Capitalization of Capital Reserve Plan The company will not distribute an interim dividend for 2020, nor will it implement a capitalization of capital reserves - The company will not distribute an interim dividend for 2020 or implement a capitalization of capital reserves[82] Fulfillment of Commitments The controlling shareholder, Yankuang Group, has fulfilled its commitments regarding non-competition and financial business security, and its H-share purchase commitment is complete - The controlling shareholder Yankuang Group's commitment to avoid competition is long-term and being fulfilled normally[84] - Yankuang Group's commitment to ensure the independence, financial security, and non-appropriation of funds of Yanzhou Coal Mining is long-term and being fulfilled normally[84] - The commitment made by Yankuang Group and its parties acting in concert to increase their holdings of the company's H-shares has been fulfilled[84][85] Appointment and Dismissal of Accounting Firms The company has appointed ShineWing Certified Public Accountants and ShineWing (HK) CPA Limited as its domestic and overseas auditors for 2020, with audit fees of CNY 8.85 million - Approved by the shareholders' meeting on June 19, 2020, ShineWing Certified Public Accountants (Special General Partnership) and ShineWing (HK) CPA Limited were appointed as the company's domestic and overseas auditors for 2020[86] - The audit service fee for 2020 is CNY 8.85 million, with CNY 6.85 million for domestic services (including an additional CNY 250,000 for internal control audit of big data projects) and CNY 2 million for overseas services[86] Matters Related to Bankruptcy and Reorganization There were no matters related to bankruptcy or reorganization during the reporting period Major Litigation and Arbitration The company is involved in several major legal cases, including disputes over share transfers, loan contracts, and sales agreements, with some proceedings still ongoing - Inner Mongolia Xinchangjiang Mining Investment Co, Ltd filed an arbitration claim with CIETAC for approximately CNY 1.435 billion for alleged breach of a share transfer agreement; the arbitration is ongoing[89] - In a contract dispute case initiated by China Huarong Asset Management, the company is named as a third party; the case is still in the first-instance trial process[89] - In a financial loan contract dispute involving Shandong Hengfeng Power Fuel Co, Ltd, with an amount of CNY 99.119 million, the company is being asked to assume joint liability; the case is in the second-instance retrial[90] - In a financial loan contract dispute involving Shandong Hengfeng Power Fuel Co, Ltd, with an amount of CNY 59.669 million, the company is being asked to assume payment obligations; the case is under retrial[91] - In a sales contract dispute with Xiamen C&D Inc, with an amount of CNY 232.661 million, the company is being asked to assume joint liability; the case is in the first-instance trial process[92] - In a bill dispute case where the company holds CNY 272.1 million in acceptance bills from Baota Finance Company, it has received 85 favorable first-instance judgments[93] - In bill dispute cases where holders are suing Yanzhou Coal Mining, with a total amount of CNY 50.5 million, the company has lost 22 cases and paid CNY 21.4 million[94] Penalties and Rectifications Concerning the Company and Its Stakeholders During the reporting period, neither the company nor its directors, supervisors, senior management, or controlling shareholder were subject to investigation or penalties - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not subject to investigation by competent authorities, compulsory measures by judicial or disciplinary departments, transfer to judicial organs, criminal prosecution, CSRC investigation, CSRC administrative penalties, securities market bans, public criticism, or other major administrative penalties or public reprimands from stock exchanges[97] Statement on the Integrity of the Company and Its Controlling Shareholder During the reporting period, the company and its controlling shareholder had no integrity issues such as unfulfilled court judgments or overdue debts - During the reporting period, the company and its controlling shareholder and actual controller had no instances of unfulfilled effective court judgments or large overdue debts[98] Equity Incentive Plans and Their Impact The company completed the grant registration for its 2018 A-share stock option incentive plan, awarding 46.32 million options that are not yet exercisable - The company's 2018 A-share stock option incentive plan completed its grant registration on February 21, 2019, with a total of 46.32 million stock options granted, representing approximately 0.94% of the company's total share capital; the options are not yet in the exercise period[100][102] - Yancoal Australia implemented an equity incentive plan in 2018 to attract and retain talent and align executive compensation with shareholder interests[103] Major Related-Party Transactions The company engaged in numerous related-party transactions involving its controlling shareholder and other affiliates, including the sale of goods, financial services, and significant acquisitions and disposals - In H1 2020, the Group's total sales of goods and services to its controlling shareholder amounted to CNY 1.611 billion, a decrease of 18.13% year-on-year; purchases from the controlling shareholder totaled CNY 1.191 billion, an increase of 72.93% year-on-year[107] - In H1 2020, the Group paid insurance premiums of CNY 357 million to its controlling shareholder[108] - As of June 30, 2020, Yankuang Group's comprehensive credit line balance at Yankuang Finance Company was CNY 4.361 billion[108] - In H1 2020, the Group's total sales of bulk commodities to Century Ruifeng amounted to CNY 135.83 million[111] - In H1 2020, the Group's purchases of equity coal from Glencore under the "HVO Sales Contract" amounted to approximately USD 218 million, and purchases under the "Coal Purchase Framework Agreement" amounted to approximately USD 45 million[111] - In H1 2020, the Group's coal sales to Sojitz Corporation and its subsidiaries amounted to approximately USD 28 million[112] - The company completed the acquisition of a 10% interest in the Moraben Coal Joint Venture from Sojitz Moraben Resources for a consideration of AUD 300 million through Moraben Company[113] - The company completed the sale of 100% equity in its wholly-owned subsidiaries, Yancoal International Trading Co, Ltd and Yancoal International (Singapore) Co, Ltd, to Yankuang Alumina (Hong Kong) Co, Ltd for a consideration of CNY 150.67 million[114][115] Related-Party Receivables and Payables in H1 2020 (Unit: CNY billion) | Related Party | Relationship | Funds Provided to Related Party (Period-End Balance) | Funds Provided by Related Party (Period-End Balance) | | :--- | :--- | :--- | :--- | | Yankuang Group | Controlling Shareholder | 8.690 | 14.066 | | Century Ruifeng | Other Related Party | 0.002 | 0.143 | | Glencore and its subsidiaries | Other Related Party | 0 | 0 | | Sojitz Group and its subsidiaries | Other Related Party | 0 | 0 | | Total | | 8.692 | 14.209 | Major Contracts and Their Performance At the end of the reporting period, the company's total guarantees for its subsidiaries amounted to CNY 27.002 billion, representing 41.20% of its net assets Company Guarantee Summary for H1 2020 (Unit: CNY billion) | Indicator | Amount | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During the Period | 6.838 | | Total Outstanding Guarantees for Subsidiaries at Period-End (B) | 27.002 | | Total Guarantee Amount (A+B) | 27.002 | | Total Guarantee Amount as a Percentage of Net Assets (%) | 41.20 | | Guarantees for Entities with Asset-Liability Ratio Over 70% (D) | 12.092 | - The company completed the sale of a 20.89% stake in Haichang Company to Guan Tai Industrial for a consideration of CNY 784 million[124] - The company's plan to publicly list and sell a 50% stake in Saint-Fenelon was suspended as no bids were received[125] - The company's controlled subsidiary, New Margin Union Limited, has completed its liquidation and deregistration process[126] - The company plans to publicly list and sell 100% equity in Yijinhuoluo Qi Anhe Coal Co, Ltd, and the listing process is underway[127] - The company has transferred its 0.3425% equity in Shaanxi Future Energy Chemical Co, Ltd to Yulin City Yuyang District State-owned Assets Operation Co, Ltd for CNY 18.495 million, and the business registration has been completed[128] Poverty Alleviation Work In H1 2020, the company actively fulfilled its social responsibilities by investing CNY 4.38 million in targeted poverty alleviation and participating in COVID-19 prevention efforts - In H1 2020, the Group invested a total of CNY 4.38 million in assistance funds, implementing a five-pronged poverty alleviation plan covering political, material, industrial, cultural, and educational support[130] - In terms of industrial poverty alleviation, over CNY 1 million was invested in building a medical device assembly workshop and creating industrial demonstration bases in assisted villages in Heze City; CNY 500,000 was invested in a greenhouse edible fungus project in an assisted village in Yijinhuoluo Qi, Ordos City[131] Targeted Poverty Alleviation Investment in H1 2020 (Unit: CNY 10,000) | Indicator | Amount and Details | | :--- | :--- | | I. Overall Situation | 438 | | Of which: 1. Funds | 370 | | 2. In-kind Contributions (Value) | 68 | | II. Breakdown of Investment | | | 1. Industrial Development for Poverty Alleviation | | | 1.2 Number of Industrial Poverty Alleviation Projects | 5 | | 1.3 Investment in Industrial Poverty Alleviation Projects | 150 | | 2. Educational Poverty Alleviation | | | Of which: 2.1 Financial Aid for Impoverished Students | 100 | | 3. Other Projects | | | Of which: 3.1 Number of Projects | 8 | | 3.2 Investment Amount | 188 | - The company actively collaborated with villages and towns in impoverished areas to combat the COVID-19 pandemic, donating prevention and control equipment and materials, and urgently allocating coal to address local energy shortages[131] - In H2, the company will continue to focus on industrial development, public welfare, and cultural guidance to ensure the effectiveness of targeted poverty alleviation[137] Convertible Corporate Bonds There were no convertible corporate bonds during the reporting period Environmental Information The company had no major environmental pollution incidents during the period, strictly complied with environmental regulations, and ensured pollutant emissions met standards - During the reporting period, the Group had no major environmental pollution incidents and was not penalized by environmental regulatory authorities for major environmental violations[139] - The Group strictly complies with all environmental protection laws and regulations and actively manages pollutant emissions to ensure compliance[139] - All key pollutant-discharging units of the Group have obtained pollutant discharge permits and discharge pollutants in accordance with requirements, within the permitted total amount[139] - All of the Group's coal mines have complete mine water and domestic sewage treatment facilities, and coal yards and waste rock dumps have been fully enclosed; all power plant boilers have undergone ultra-low emission retrofits; chemical enterprises have built industrial wastewater treatment plants and are currently implementing VOCs control[142] - All of the Group's construction projects undergo environmental impact assessments before construction and apply for environmental acceptance as required, only starting production after obtaining approval[145] - All production units of the Group have prepared emergency response plans for environmental incidents, equipped necessary emergency facilities, and conduct regular emergency drills[146] - The Group's coal mines, power plants, and chemical enterprises have installed online monitoring facilities connected to government environmental monitoring platforms for real-time monitoring, and conduct regular self-monitoring[147] Other Significant Matters During the period, the company repurchased and cancelled 52.016 million H-shares, obtained shareholder approval for new H-share issuance and buyback mandates, and redeemed USD 500 million in perpetual securities - The company repurchased a total of 52.016 million H-shares from the Hong Kong Stock Exchange between May 4, 2020, and May 22, 2020[153] - On April 13, 2020, Yancoal International Resources redeemed USD 500 million of its 5.75% senior guaranteed perpetual capital securities[154] - The shareholders' meeting on June 19, 2020, granted the Board a general mandate to issue up to 20% and repurchase up to 10% of the total issued H-shares, which had not been exercised as of the report disclosure date[155] - The company continuously improves its corporate governance structure, having revised the Articles of Association and Rules of Procedure for the General Meeting of Shareholders, and strictly complies with the Corporate Governance Code and the Model Code[158][159] - The company strengthened communication with the capital market through various channels such as international and domestic roadshows, investment strategy conferences, site visits, and online platforms, meeting with over 400 analysts, fund managers, and investors[160] Changes in Ordinary Shares and Shareholder Information This section details changes in share capital and shareholder structure in H1 2020, including a reduction in total shares due to H-share buybacks Changes in Share Capital During the reporting period, the company's total share capital decreased by 52.016 million shares due to the repurchase and cancellation of H-shares Share Capital Changes in H1 2020 (Unit: shares) | | Pre-Change Quantity | % | Change (+, -) Other | Subtotal | Post-Change Quantity | % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 120,500 | 0.0025 | 0 | 0 | 120,500 | 0.0025 | | II. Unrestricted Circulating Shares | 4,911,895,500 | 99.9975 | -52,016,000 | -52,016,000 | 4,859,879,500 | 99.9975 | | 3. Overseas Listed Foreign Shares | 1,952,016,000 | 39.7396 | -52,016,000 | -52,016,000 | 1,900,000,000 | 39.0947 | | III. Total Shares | 4,912,016,000 | 100 | -52,016,000 | -52,016,000 | 4,860,000,000 | 100 | - From May 4 to May 22, 2020, the company repurchased 52,016,000 H-shares on the Hong Kong Stock Exchange for a total of HKD 310,188,380.00, all of which have been cancelled[162] - As of the end of the reporting period, the company's total share capital will be reduced from 4,912,016,000 shares to 4,860,000,000 shares[162] - As of the reporting date, the public float of the company exceeded 25% of the total share capital, in compliance with the Hong Kong Listing Rules[163] Shareholder Information As of the end of the reporting period, the company had 81,403 ordinary shareholders, with the controlling shareholder Yankuang Group and its concerted parties holding 56.01% of the shares - As of the end of the reporting period, the total number of ordinary shareholders was 81,403[164] Top Ten Shareholders at Period-End (Unit: shares) | Shareholder Name | Period-End Holding | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yankuang Group Co, Ltd | 2,267,169,423 | 46.65 | State-owned legal person | | HKSCC Nominees Limited | 1,895,677,203 | 39.01 | Overseas legal person | | Beijing Chengtong Jinkong Investment Co, Ltd | 33,116,200 | 0.68 | State-owned legal person | | Hong Kong Securities Clearing Company Limited | 27,227,572 | 0.56 | Overseas legal person | | New China Life Insurance Co, Ltd - Dividend - Individual Dividend - 018L-FH002 Shanghai | 21,957,897 | 0.45 | Other | | Central Huijin Asset Management Ltd | 19,355,100 | 0.40 | State-owned legal person | | New China Life Insurance Co, Ltd - Dividend - Group Dividend - 018L-FH001 Shanghai | 10,710,153 | 0.22 | Other | | Bank of China - Fullgoal CSI SOE One Belt One Road ETF | 5,623,951 | 0.12 | Other | | National Social Security Fund Portfolio 412 | 5,097,107 | 0.10 | Other | | Shandong JINDUN Energy Co, Ltd | 4,843,685 | 0.10 | Domestic non-state-owned legal person | - As of June 30, 2020, Yankuang Group directly and indirectly held 56.01% of the company's shares[168] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder or actual controller during the reporting period[171] Directors, Supervisors, and Senior Management This section discloses changes in the holdings and composition of the company's board of directors, board of supervisors, and senior management during the period Changes in Shareholdings As of the report disclosure date, current and former directors, supervisors, and senior management collectively held 80,000 domestic shares and 2.64 million unexercised stock options - As of the disclosure date of this report, current and former directors, supervisors, and senior management collectively held 80,000 of the company's domestic shares, representing approximately 0.0016% of the total share capital[175] Equity Incentive Holdings of Directors, Supervisors, and Senior Management (Unit: shares) | Name | Position | Stock Options Held at Beginning of Period | Stock Options Held at End of Period | | :--- | :--- | :--- | :--- | | Wu Xiangqian | Director | 320,000 | 320,000 | | Liu Jian | Director | 260,000 | 260,000 | | Zhao Qingchun | Director | 260,000 | 260,000 | | He Jing | Director | 260,000 | 260,000 | | Wang Ruolin | Director | 150,000 | 150,000 | | Qin Yanpo | Supervisor | 120,000 | 120,000 | | Su Li | Supervisor | 150,000 | 150,000 | | Xiao Yaomeng | Senior Management | 150,000 | 150,000 | | Gong Zhijie | Senior Management | 260,000 | 260,000 | | Wang Peng | Senior Management | 150,000 | 150,000 | | Li Wei | Senior Management | 150,000 | 150,000 | | Wang Chunyao | Senior Management | 150,000 | 150,000 | | Jin Qingbin | Senior Management | 260,000 | 260,000 | | Total | / | 2,640,000 | 2,640,000 | - The stock options granted under this equity incentive plan have not yet entered the exercise period[102] Changes in Directors, Supervisors, and Senior Management During the reporting period, the company underwent a leadership transition with the election and appointment of a new Board of Directors, Board of Supervisors, and senior management team - Approved by the shareholders' meeting on June 19, 2020, Li Xiyong, Li Wei, Wu Xiangqian, Liu Jian, Zhao Qingchun, He Jing, Tian Hui, Zhu Limin, Cai Chang, and Pan Zhaoguo were elected as non-employee representative directors of the eighth Board of Directors, with Wang Ruolin as the employee representative director[180] - Mr Li Xiyong was elected as the Chairman of the eighth Board of Directors, and Mr Li Wei was elected as the Vice Chairman[180] - Approved by the shareholders' meeting on June 19, 2020, Gu Shisheng, Zhou Hong, Li Shipeng, and Qin Yanpo were elected as non-employee representative supervisors of the eighth Board of Supervisors, with Su Li and Zheng Kai as employee representative supervisors; Gu Shisheng was elected Chairman, and Zhou Hong was elected Vice Chairman[181][182] - Approved by the 33rd meeting of the seventh Board of Directors on April 22, 2020, Mr Liu Jian was appointed as the General Manager, and Xiao Yaomeng, Zhang Chuanchang, and Wang Peng were appointed as Deputy General Managers; Wu Xiangqian, Zhao Honggang, and Wang Fuqi resigned from their respective positions[183] - Approved by the first meeting of the eighth Board of Directors on June 19, 2020, Mr Liu Jian was appointed as General Manager, Xiao Yaomeng, He Jing, Gong Zhijie, Zhang Chuanchang, Wang Peng, and Li Wei as Deputy General Managers, Zhao Qingchun as CFO, Wang Chunyao as Chief Engineer, Jin Qingbin as Board Secretary, and Zhang Lei as Investment Director[184] Other Explanations Several changes were made to the positions held by current directors, supervisors, and senior management in subsidiary companies to meet the company's development needs Changes in Positions Held by Current Directors, Supervisors, and Senior Management in Subsidiaries | Position in Company | Name | Former Position | New Position | Change Date | | :--- | :--- | :--- | :--- | :--- | | Director, General Manager | Liu Jian | Executive Director of Yankuang Donghua Heavy Industry Co, Ltd; Chairman of Yanzhou Coal Mining Shanxi Neng Hua Co, Ltd | - | April 4, 2020 | | Deputy General Manager | Zhang Chuanchang | - | Chairman and General Manager of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd; Chairman of Inner Mongolia Haosheng Coal Industry Co, Ltd | May 4, 2020 | | Deputy General Manager | Wang Peng | Chairman and General Manager of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd; Chairman of Inner Mongolia Haosheng Coal Industry Co, Ltd | Executive Director of Yankuang Donghua Heavy Industry Co, Ltd | April 4, 2020 | | Investment Director | Zhang Lei | CFO of Yancoal Australia Limited | General Manager of Yancoal International (Holding) Co, Ltd | March 20, 2020; April 10, 2020 | | Supervisor | Qin Yanpo | Director, CFO, and General Counsel of Yanzhou Coal Mining Ordos Neng Hua Co, Ltd | - | April 4, 2020 | Corporate Bonds This section details the company's outstanding corporate bonds, use of proceeds, credit ratings, and repayment plans, confirming a stable AAA rating Basic Information on Corporate Bonds The company has issued multiple tranches of corporate and perpetual bonds with a significant outstanding balance and interest rates ranging from 2.99% to 6.15%, with all interest payments made on schedule Basic Information on Corporate Bonds (Unit: CNY billion) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Outstanding Balance | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yanzhou Coal Mining 2012 Corporate Bond (Tranche 1) | 12 Yanzhou Coal 02 | 122168 | 2012/7/23 | 2022/7/23 | 4.0 | 4.95 | SSE | | Yanzhou Coal Mining 2012 Corporate Bond (Tranche 2) | 12 Yanzhou Coal 04 | 122272 | 2014/3/3 | 2024/3/3 | 3.05 | 6.15 | SSE | | Yanzhou Coal Mining 2017 Publicly Issued Perpetual Corporate Bond (Tranche 1) | 17 Yanzhou Coal Y1 | 143916 | 2017/8/17 | 2020/8/17 | 5.0 | 5.7 | SSE | | Yanzhou Coal Mining 2018 Publicly Issued Perpetual Corporate Bond (Tranche 1) | 18 Yanzhou Coal Y1 | 143959 | 2018/3/26 | 2021/3/26 | 5.0 | 6 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 01 | 163234 | 2020/3/12 | 2023/3/12 | 0.3 | 2.99 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 02 | 163235 | 2020/3/12 | 2025/3/12 | 2.7 | 3.43 | SSE | | Yanzhou Coal Mining 2020 Corporate Bond (Tranche 1) | 20 Yanzhou Coal 03 | 163236 | 2020/3/12 | 2030/3/12 | 2.0 | 4.29 | SSE | - During the reporting period, the company made all interest payments on its bonds on schedule, with no defaults[189] Contact Information for Bond Trustee and Credit Rating Agency The trustees for the company's various bonds include BOC International, Ping An Securities, and Haitong Securities, while credit rating agencies include Dagong Global, China Chengxin, and Golden Credit Rating - The corporate bond trustees include BOC International (China) Limited, Ping An Securities Co, Ltd, and Haitong Securities Co, Ltd[190] - The credit rating agencies include Dagong Global Credit Rating Co, Ltd, China Chengxin Securities Rating Co, Ltd, and Golden Credit Rating International Co, Ltd[190] Use of Proceeds from Corporate Bonds The total proceeds of CNY 22.05 billion from various bond issuances were used to supplement working capital and repay maturing debts, consistent with the offering circulars - The CNY 7.05 billion raised from 12 Yanzhou Coal 02 and 12 Yanzhou Coal 04 was fully used to supplement working capital[192] - The CNY 10 billion raised from 17 Yanzhou Coal Y1 and 18 Yanzhou Coal Y1 was used to repay maturing debts and supplement working capital[192] - The CNY 5 billion raised from 20 Yanzhou Coal 01, 02, and 03 was used to repay interest-bearing debt and supplement working capital[192] Corporate Bond Credit Ratings Dagong Global, China Chengxin, and Golden Credit Rating have all maintained the company's long-term corporate credit rating at AAA with a stable outlook, and all bonds are rated AAA - Dagong Global, China Chengxin, and Golden Credit Rating have all maintained the company's long-term corporate credit rating at AAA with a stable outlook[193] - The credit ratings for all corporate bonds have been maintained at AAA, indicating an extremely low risk of default[193] Credit Enhancement, Repayment Plan, and Other Related Matters The credit enhancement mechanisms and repayment plans for the company's bonds remained unchanged, with Yankuang Group providing guarantees for certain bonds - During the reporting period, there were no changes to the credit enhancement mechanisms, repayment plans, or other debt service guarantee measures for the corporate bonds[194] - Yankuang Group provides a full, unconditional, and irrevocable joint and several liability guarantee for the 12 Yanzhou Coal 02 and 12 Yanzhou Coal 04 bonds[194] - The company has established a detailed repayment plan, specifying the interest payment dates and maturity dates for each bond[197] - The debt service guarantee plan includes establishing a dedicated repayment working group, earmarking funds, fully utilizing the role of the bond trustee, formulating rules for bondholder meetings, and ensuring strict information disclosure[199] Bondholder Meetings No bondholder meetings were held during the reporting period - No bondholder meetings were held during the reporting period[200] Performance of Bond Trustees The trustees for the company's various bonds have fulfilled their duties by disclosing trustee administration reports as required - BOC International, Ping An Securities, and Haitong Securities, as trustees for the company's various bonds, have all disclosed their trustee administration reports as required[200] Key Accounting Data and Financial Indicators At the end of the reporting period, the company's liquidity ratios remained stable, while the asset-liability ratio increased slightly, and interest coverage ratios were strong Key Accounting Data and Financial Indicators for Corporate Bonds in H1 2020 | Key Indicator | End of Current Period / Current Period (Jan-Jun) | End of Prior Year / Prior Year Period | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 0.87 | 0.87 | 0 | | Quick Ratio | 0.69 | 0.72 | -4.17 | | Asset-Liability Ratio (%) | 61.90 | 59.81 | Increase of 2.09 percentage points | | Loan Repayment Rate (%) | 100 | 100 | 0 | | EBITDA Interest Coverage Ratio | 9.78 | 8.89 | 10.01 | | Interest Payment Rate (%) | 100 | 100 | 0 | Explanation of Overdue Debt The company had no overdue debt during the reporting period - The company had no overdue debt during the reporting period[203] Payment Status of Other Bonds and Debt Financing Instruments The company's USD bonds, perpetual bonds, medium-term notes, and ultra-short-term financing instruments were all paid on time without any defaults - The company's 10-year USD bonds issued in 2012, USD perpetual bonds issued in 2017, 3-year USD bonds issued in 2018, medium-term notes issued in 2018, and ultra-short-term financing instruments issued this year have all had their principal and interest paid on time as agreed, with no defaults[203] Bank Credit Facilities As of June 30, 2020, the Group had total bank credit facilities of CNY 139.901 billion, with CNY 87.945 billion unused, and all bank loans were repaid on schedule - As of June 30, 2020, the Group's total bank credit facilities amounted to CNY 139.901 billion, of which CNY 51.956 billion was utilized, leaving an unused balance of CNY 87.945 billion[204] - In H1 2020, the Group repaid bank loan principal and interest of CNY 8.222 billion on schedule, with no extensions, waivers, or defaults[204] Execution of Covenants in Bond Prospectuses The company has strictly adhered to all covenants and commitments in its bond prospectuses, with no violations or events affecting investor fund security - The company has strictly fulfilled the relevant covenants and commitments in its bond prospectuses, with no defaults or events that could affect the security of investor funds[205] Impact of Significant Events on Operations and Solvency The significant events that occurred did not materially affect the company's operations or solvency, as its business remains stable with accessible financing channels - The significant events that occurred did not have a material impact on the company's operating conditions; the company's operations are stable, financing channels are accessible, and there is no impact on its ability to repay investors[206] Financial Report This section contains the unaudited consolidated and parent company financial statements for the half-year ended June 30, 2020, along with detailed notes Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[3] Financial Statements This section provides the company's consolidated and parent company financial statements for the half-year of 2020, presenting a comprehensive view of its financial position and performance Key Data from Consolidated Balance Sheet (Unit: CNY '000) | Item | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 218,370,843 | 207,821,363 | | Total Liabilities | 135,165,811 | 124,297,241 | | Equity Attributable to Parent Company Owners | 65,533,028 | 63,291,840 | | Minority Interests | 17,672,004 | 20,232,282 | | Total Equity | 83,205,032 | 83,524,122 | Key Data from Consolidated Income Statement (Unit: CNY '000) | Item | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Total Operating Revenue | 109,613,418 | 105,975,591 | | Total Operating Costs | 106,144,317 | 98,638,102 | | Operating Profit | 7,167,549 | 8,406,762 | | Total Profit | 7,750,542 | 8,552,506 | | Net Profit | 6,381,252 | 7,040,030 | | Net Profit Attributable to Parent Company Shareholders | 4,599,867 | 5,360,854 | | Minority Interest Income/Loss | 1,485,635 | 1,380,023 | | Total Comprehensive Income | 6,240,783 | 7,388,306 | Key Data from Consolidated Cash Flow Statement (Unit: CNY '000) | Item | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,556,885 | 11,920,967 | | Net Cash Flow from Investing Activities | -3,733,998 | -2,021,390 | | Net Cash Flow from Financing Activities | 599 | -14,328,868 | | Net Increase in Cash and Cash Equivalents | -5,105,275 | -4,595,510 | Company Basic Information Yanzhou Coal Mining Company Limited was established in September 1997 in Zoucheng City, Shandong Province, with its main business in coal mining, sales, and related activities - Yanzhou Coal Mining Company Limited was established in September 1997, with its registered office and headquarters in Zoucheng City, Shandong Province[236] - The company's business scope primarily includes coal mining and sales, investment with own funds and investment consulting, freight transport on its own railway lines, coal chemical business, and electromechanical equipment manufacturing[237] - As of June 30, 2020, the company's total share capital was CNY 4.86 billion[236] Basis of Preparation of Financial Statements The Group's financial statements are prepared on a going concern basis in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance - The Group's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises and related regulations issued by the Ministry of Finance, based on actual transactions and events[239] - The Group has a history of recent profitable operations and financial resources to support its ability to continue as a going concern for the next 12 months from the end of the reporting period, with no significant events affecting this ability[240] Significant Accounting Policies and Estimates This section details the key accounting policies and estimates used in preparing the financial statements, covering areas such as business combinations, financial instruments, and revenue recognition - In business combinations under common control, the Group measures the acquired assets and li