晋控煤业(601001) - 2019 Q4 - 年度财报

Part I Definitions This section provides definitions for key terms used throughout the report, clarifying references to the company, board of directors, and major associated entities, and defines the reporting period I. Definitions This section defines frequently used terms in the report, clarifying references for key terms like 'Company,' 'Board of Directors,' and 'Supervisory Board,' along with full names of major affiliates such as 'Datong Coal Group' and 'Tashan Coal Mine,' and specifies the reporting period from January 1, 2019, to December 31, 2019 - The reporting period is defined as January 1, 2019, to December 31, 2019[8] - It clarifies that 'the Company' refers to Datong Coal Industry Co., Ltd., and 'Datong Coal Group' refers to Datong Coal Mine Group Co., Ltd.[8] Part II Company Profile and Key Financial Indicators This section provides the company's basic information, contact details, stock overview, and a summary of key financial data and performance indicators for the past three years I. Company Information This section discloses the company's basic registration information, including its Chinese name 'Datong Coal Industry Co., Ltd.' and its abbreviation 'Datong Coal Industry,' its English name 'DaTong Coal Industry Co.,Ltd' and its abbreviation 'DTCIC,' and its legal representative Wu Wangguo - The company's Chinese name is Datong Coal Industry Co., Ltd., abbreviated as Datong Coal Industry[9] - The company's legal representative is Wu Wangguo[9] II. Contact Persons and Information This section provides contact information for the company's Board Secretary Qian Jianjun and Securities Affairs Representative Li Juping, including address, phone, fax, and email, to facilitate communication with investors and relevant parties - The Board Secretary is Qian Jianjun, and the Securities Affairs Representative is Li Juping[10] - The contact address is Datong Coal Industry Co., Ltd., Xinpingwang, Yungang District, Datong City, Shanxi Province[10] III. Brief Introduction to Basic Information The company's registered and office addresses are both located in Xinpingwang, Mining Area, Datong City, Shanxi Province, with postal code 037003, website http://www.dtmy.com.cn, and email public@dtmy.com.cn - The company's registered and office addresses are both in Xinpingwang, Mining Area, Datong City, Shanxi Province[11][12] - The company's website is **http://www.dtmy.com.cn**[12](index=12&type=chunk) IV. Information Disclosure and Document Availability The company designates China Securities Journal, Shanghai Securities News, and Securities Daily as information disclosure media, publishes its annual report on www.sse.com.cn, and the Board Secretary's office serves as the location for annual report availability - The company designates China Securities Journal, Shanghai Securities News, and Securities Daily as its information disclosure media[13] - The annual report is published on the CSRC-designated website **www.sse.com.cn**[13](index=13&type=chunk) V. Company Stock Overview The company's A-shares are listed and traded on the Shanghai Stock Exchange, with stock abbreviation 'Datong Coal Industry' and stock code 601001 - The company's A-shares are listed on the Shanghai Stock Exchange[14] - The stock abbreviation is 'Datong Coal Industry' and the stock code is '601001'[14] VI. Other Relevant Information The company's appointed domestic accounting firm is Lixin Certified Public Accountants (Special General Partnership), with its office located on the fourth floor of No. 61 Nanjing East Road, Huangpu District, Shanghai, and the signing accountants are Liu Zhihong and Dong Xinming - The company appointed Lixin Certified Public Accountants (Special General Partnership) for auditing[15] - The signing accountants are Liu Zhihong and Dong Xinming[15] VII. Key Accounting Data and Financial Indicators for the Past Three Years In 2019, the company's operating revenue increased by 0.88% to 11.36 billion yuan, net profit attributable to shareholders rose by 36.04% to 897.46 million yuan, basic earnings per share increased to 0.54 yuan/share, and weighted average return on net assets improved by 2.51 percentage points to 15.06%; however, net cash flow from operating activities decreased by 23.63% Key Accounting Data for the Past Three Years | Item | 2019 (yuan) | 2018 (yuan) | Change YOY (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,358,049,184.90 | 11,258,568,834.70 | 0.88 | | Net Profit Attributable to Shareholders of Listed Company | 897,462,176.08 | 659,711,219.09 | 36.04 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 884,564,845.14 | 656,277,725.93 | 34.79 | | Net Cash Flow from Operating Activities | 2,694,562,554.93 | 3,528,429,730.37 | -23.63 | | Net Assets Attributable to Shareholders of Listed Company (2019 Year-end/2018 Year-end) | 6,404,376,767.73 | 5,510,701,504.97 | 16.22 | | Total Assets (2019 Year-end/2018 Year-end) | 27,489,175,723.66 | 25,367,176,331.03 | 8.37 | Key Financial Indicators for the Past Three Years | Item | 2019 | 2018 | Change YOY (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.54 | 0.39 | 38.46 | | Diluted Earnings Per Share (yuan/share) | 0.54 | 0.39 | 38.46 | | Basic Earnings Per Share (Excluding Non-recurring Gains and Losses) (yuan/share) | 0.53 | 0.39 | 35.90 | | Weighted Average Return on Net Assets (%) | 15.06 | 12.55 | Increased by 2.51 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains and Losses) (%) | 14.85 | 12.48 | Increased by 2.37 percentage points | VIII. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets attributable to shareholders of the listed company between financial reports prepared under international accounting standards and Chinese accounting standards, or between overseas accounting standards and Chinese accounting standards - The company has no differences in accounting data under domestic and overseas accounting standards[18] IX. Key Quarterly Financial Data for 2019 In 2019, quarterly operating revenue remained relatively stable, with the second quarter being the highest at 3.06 billion yuan; net profit attributable to shareholders fluctuated slightly between 218 million yuan and 236 million yuan, and net cash flow from operating activities peaked at 1.12 billion yuan in the second quarter Key Quarterly Financial Data for 2019 | Indicator | Q1 (Jan-Mar) (yuan) | Q2 (Apr-Jun) (yuan) | Q3 (Jul-Sep) (yuan) | Q4 (Oct-Dec) (yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,637,363,900.20 | 3,063,066,353.44 | 3,047,525,380.52 | 2,610,093,550.74 | | Net Profit Attributable to Shareholders of Listed Company | 236,055,053.54 | 218,883,270.85 | 222,206,247.99 | 220,317,603.70 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 218,677,743.14 | 234,716,637.76 | 223,969,923.08 | 207,200,541.08 | | Net Cash Flow from Operating Activities | 488,166,553.09 | 1,117,948,665.69 | 345,596,757.44 | 742,850,578.71 | X. Non-recurring Gains and Losses Items and Amounts In 2019, the company's total non-recurring gains and losses amounted to 12.90 million yuan, primarily including gains/losses from disposal of non-current assets, government subsidies, entrusted management fee income, and other non-operating income/expenses, showing a significant increase compared to 2018 Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | 2019 Amount (yuan) | 2018 Amount (yuan) | 2017 Amount (yuan) | | :--- | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 14,217,928.71 | 0 | 514,476,893.67 | | Government Subsidies Included in Current Profit/Loss | 16,280,720.53 | 16,703,311.31 | 41,238,508.52 | | Entrusted Management Fee Income | 1,981,132.08 | 1,981,132.08 | 1,957,870.26 | | Other Non-operating Income and Expenses Apart from the Above | -9,265,535.41 | -18,231,027.39 | -5,501,209.96 | | Impact on Minority Shareholders' Equity | -8,221,484.43 | 2,980,077.16 | -12,444,507.87 | | Income Tax Impact | -2,095,430.54 | 0 | -8,730,258.40 | | Total | 12,897,330.94 | 3,433,493.16 | 530,997,296.22 | Part III Company Business Overview This section outlines the company's primary business activities, operating model, and industry conditions, including detailed analyses of the coal, activated carbon, and kaolin markets, along with an assessment of core competencies 1. Description of Main Business, Operating Model, and Industry Conditions During the Reporting Period The company primarily engages in coal production and sales, along with mechanical manufacturing, kaolin processing and sales, and activated carbon production and sales; its operating model centers on coal and related chemical product production and sales, facing a general decline in coal prices, increased activated carbon output with slowing demand, and kaolin industry overcapacity and price drops in 2019 - The company's main businesses include coal mining, processing, and sales, as well as mechanical manufacturing, kaolin processing and sales, and activated carbon production and sales[23] - The operating model primarily focuses on the production and sales of coal and related chemical products (thermal coal, activated carbon, kaolin)[23] 1.1 Coal Market Analysis In 2019, China's coal prices generally declined by approximately 3.16% due to economic slowdown, low power demand, and increased coal imports; the company produced 33.78 million tons of raw coal, sold 28.20 million tons of commercial coal at 383.62 yuan/ton, generating 10.82 billion yuan in sales revenue - In 2019, China's coal prices generally declined, with the Bohai-Rim Thermal Coal Price Index falling by approximately 3.16%[23] Company Coal Production and Operations in 2019 | Product | Raw Coal Output (million tons) | Commercial Coal Sales (million tons) | Sales Price (yuan/ton) | Sales Revenue (million yuan) | Sales Cost (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 33.78 | 28.20 | 383.62 | 1,081,633.28 | 465,830.89 | 1.2 Activated Carbon Market Analysis In 2019, total activated carbon output reached a record high of 1.28 million tons, a 42.2% increase, but industry expansion slowed significantly in the second half due to economic deceleration and environmental inspections; the company produced 57,100.90 tons and sold 43,610.46 tons of activated carbon, generating 259.39 million yuan in sales revenue - In 2019, total activated carbon output increased by 42.2%, but industry expansion slowed in the second half[25] Company Activated Carbon Production and Operations in 2019 | Product | Output (tons) | Sales Volume (tons) | Sales Price (yuan/ton) | Sales Revenue (million yuan) | Sales Cost (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Activated Carbon | 57,100.90 | 43,610.46 | 5947.98 | 25,939.41 | 25,615.79 | 1.3 Kaolin Market Analysis China possesses unique coal-series kaolin resources, but the calcined kaolin industry faces severe overcapacity and continuous price declines due to reduced downstream capacity and formula improvements; the company produced 0.064 million tons and sold 0.194 million tons of kaolin, generating 29.38 million yuan in sales revenue - The calcined kaolin industry faces a severe market situation of overcapacity and continuous price declines[27] Company Kaolin Production and Operations in 2019 | Product | Output (million tons) | Sales Volume (million tons) | Sales Price (yuan/ton) | Sales Revenue (million yuan) | Sales Cost (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Kaolin | 0.064 | 0.194 | 1,516.55 | 2,937.95 | 2,046.39 | 2. Explanation of Significant Changes in Company's Major Assets During the Reporting Period During the reporting period, no significant changes occurred in the company's major assets 3. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its high-quality thermal coal resources, convenient transportation, strong resource reserves from its controlling shareholder, robust technological advantages, and a comprehensive safety production management system - The company is renowned for its high-quality thermal coal with low ash, low sulfur, and high calorific value, maintaining a good market reputation and stable customer base[29] - Located at the starting point of the Daqin Railway, the company benefits from convenient transportation; its controlling shareholder, Datong Coal Group, possesses abundant resource reserves, indicating potential for asset injection[29] - The company boasts strong technological advantages, collaborating with renowned research institutions and achieving breakthroughs in fully mechanized top-coal caving technology for extra-thick coal seams[29] - The company places high importance on safety production, having established a comprehensive safety production responsibility system[29] Part IV Discussion and Analysis of Operations This section discusses the company's operational performance, key financial changes, and future development plans, including an analysis of industry trends, strategic goals, and potential risks I. Discussion and Analysis of Operations In 2019, the company focused on its core coal business, enhancing production efficiency through refined management and technological innovation, ensuring stable operations with strengthened safety management, and achieving sales growth by actively responding to market changes; significant progress was also made in intelligent mine construction, corporate governance, and high-quality development through optimized capital management, structural adjustments, and equity investments - In 2019, the company achieved 11.12 billion yuan in main business revenue, 33.78 million tons of coal output, 28.20 million tons of coal sales, 2.22 billion yuan in total profit, 1.37 billion yuan in net profit, and 897.46 million yuan in net profit attributable to the parent company[30] - The company improved the quality and efficiency of its core coal business by intensifying daily management of fully mechanized mining faces, strengthening roof management, overcoming on-site operational challenges, and optimizing processes[30] - The company deepened safety management by strengthening hazard identification, increasing special rectification efforts, focusing on key area management, and strictly controlling on-site operations to ensure stable production[31] - The company actively responded to the market, achieving steady growth in sales efficiency through measures such as adjusting customer ratios, differentiated pricing, optimizing coal quality structure, and port coal blending[31] - Intelligent mine construction progressed smoothly, with the Tashan 8222 working face successfully deploying 15 million tons-level intelligent top-coal caving technology, becoming an industry leader[31] - The company strengthened standardized operations, improved internal control systems, strictly fulfilled information disclosure obligations, and was rated as an AAA-level credit enterprise in the coal industry[31][32] - The company promoted high-quality development by optimizing capital management (financial expenses decreased by 59.47 million yuan year-on-year), optimizing management innovation (Tashan Mine's approved capacity increased by 10.60 million tons), implementing structural adjustments (activated carbon and kaolin companies reduced losses), and engaging in equity investments (Datong Coal Qi Yin Equity Investment Private Fund achieved 65.50 million yuan in income)[32] II. Key Operating Performance During the Reporting Period During the reporting period, the company's operating revenue saw a slight increase, but net cash flow from operating activities decreased; coal business remained core with increased production and sales and improved gross margin, while activated carbon production and sales grew significantly, and kaolin production and sales declined; the company's expense structure changed with the first disclosure of R&D expenses, and its asset-liability structure adjusted with a substantial increase in short-term borrowings and a decrease in taxes payable; Tashan Coal Mine, a major subsidiary, showed strong profitability, while Selian Coal Mine remained at a loss I) Analysis of Main Business In 2019, the company's operating revenue increased by 0.88% while operating costs decreased by 6.86%; sales and administrative expenses both rose, but financial expenses decreased by 9.52%; net cash flow from operating activities declined by 23.63%, while net cash flows from investing and financing activities significantly improved; the gross margin for coal business increased by 3.36 percentage points to 56.93%, and activated carbon gross margin significantly rose by 25.01 percentage points to 1.25% Analysis of Profit Statement and Cash Flow Statement Related Items | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,358,049,184.90 | 11,258,568,834.70 | 0.88 | | Operating Cost | 5,078,072,418.06 | 5,452,123,116.75 | -6.86 | | Selling Expenses | 2,202,472,158.36 | 2,015,054,648.12 | 9.30 | | Administrative Expenses | 478,254,856.40 | 433,262,609.58 | 10.38 | | R&D Expenses | 174,889,708.67 | 0 | - | | Financial Expenses | 565,364,722.65 | 624,841,007.24 | -9.52 | | Net Cash Flow from Operating Activities | 2,694,562,554.93 | 3,528,429,730.37 | -23.63 | | Net Cash Flow from Investing Activities | -269,124,373.17 | -1,262,602,579.74 | 78.68 | | Net Cash Flow from Financing Activities | -1,192,379,851.06 | -3,766,378,721.68 | 68.34 | Main Business by Industry Segment | Industry Segment | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Change YOY (%) | Operating Cost Change YOY (%) | Gross Margin Change YOY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | 10,816,332,783.69 | 4,658,308,936.26 | 56.93% | 1.01 | -6.30 | Increased by 3.36 percentage points | | Activated Carbon | 259,394,075.07 | 256,157,894.25 | 1.25% | 35.05 | 7.76 | Increased by 25.01 percentage points | | Building Materials | 3,795,996.33 | 2,494,569.26 | 34.28% | -79.74 | -86.46 | Increased by 32.62 percentage points | | Kaolin and Coatings | 44,396,757.52 | 30,930,439.06 | 30.33% | -35.34 | -59.28 | Increased by 40.94 percentage points | Production and Sales Volume Analysis Table | Main Product | Unit | Production Volume | Sales Volume | Inventory Volume | Production Volume Change YOY (%) | Sales Volume Change YOY (%) | Inventory Volume Change YOY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Coal | million tons | 33.78 | 28.20 | 0.23 | 8.76 | 6.87 | 37.02 | | Activated Carbon | tons | 57,100.90 | 43,610.46 | 18,474.79 | 71.38 | 28.37 | 270.32 | | Kaolin | million tons | 0.064 | 0.194 | 0.0025 | -87.76% | -55.61% | -83.77 | Expense Fluctuation | Item | 2019 Annual (yuan) | 2018 Annual (yuan) | Comparison (%) | | :--- | :--- | :--- | :--- | | Business Taxes and Surcharges | 723,645,847.74 | 728,953,076.53 | -0.73 | | Selling Expenses | 2,202,472,158.36 | 2,015,054,648.12 | 9.30 | | Administrative Expenses | 478,254,856.40 | 433,262,609.58 | 10.38 | | R&D Expenses | 174,889,708.67 | 0 | - | | Financial Expenses | 565,364,722.65 | 624,841,007.24 | -9.52 | | Asset Impairment Losses | 67,928,875.84 | 182,733,722.52 | -62.83 | | Credit Impairment Losses | 28,984,265.71 | 0 | - | Cash Flow Fluctuation | Item | 2019 Annual (yuan) | 2018 Annual (yuan) | Comparison (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 2,694,562,554.93 | 3,528,429,730.37 | -23.63 | | Net Cash Flow from Investing Activities | -269,124,373.17 | -1,262,602,579.74 | 78.68 | | Net Cash Flow from Financing Activities | -1,192,379,851.06 | -3,766,378,721.68 | 68.34 | - Sales to the top five customers accounted for 44.44% of total annual sales, with related party sales comprising 13.36%; purchases from the top five suppliers accounted for 39.29% of total annual purchases, with related party purchases making up 37.65%[40] II) Explanation of Significant Profit Changes Caused by Non-Core Businesses During the reporting period, there were no significant profit changes in the company caused by non-core businesses III) Analysis of Assets and Liabilities At the end of 2019, the company's total assets increased by 8.37% to 27.49 billion yuan; within current assets, monetary funds and notes receivable significantly increased, while short-term borrowings surged by 324.57% to 4.08 billion yuan; long-term borrowings and bonds payable among non-current liabilities decreased, but provisions for liabilities increased by 897.80 million yuan due to the recognition of land reclamation and environmental restoration expenses Asset and Liability Status Changes | Item Name | 2019 Year-end Amount (yuan) | Proportion of Total Assets at Period-end (%) | Prior Period-end Amount (yuan) | Proportion of Total Assets at Prior Period-end (%) | Change from Prior Period-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 8,091,721,505.50 | 29.44 | 6,864,732,503.74 | 27.06 | 17.87 | | | Notes Receivable | 287,689,646.39 | 1.05 | 41,813,392.81 | 0.16 | 588.03 | Increase in bank acceptance bills this period | | Inventories | 450,002,153.57 | 1.64 | 321,640,449.81 | 1.27 | 39.91 | Increase in inventory goods this period | | Short-term Borrowings | 4,075,913,522.37 | 14.83 | 960,000,000.00 | 3.78 | 324.57 | Increase in short-term credit borrowings this period | | Taxes Payable | 488,452,576.46 | 1.78 | 1,034,780,855.85 | 4.08 | -52.80 | Decrease in VAT, corporate income tax, etc., payable this period compared to prior period | | Provisions for Liabilities | 897,795,147.26 | 3.27 | 0 | 0 | 100.00 | Recognition of land reclamation and environmental restoration expenses | | Retained Earnings | 2,513,857,566.13 | 9.14 | 1,616,395,390.05 | 6.37 | 55.52 | Retained earnings attributable to the parent company increased due to higher coal mine sales | IV) Industry Operating Information Analysis The company's coal business primarily focuses on thermal coal, generating 10.82 billion yuan in sales revenue and 6.16 billion yuan in gross profit in 2019; the company possesses abundant coal reserves, with total resources of 5.40 billion tons and recoverable reserves of 2.90 billion tons; Xinzhouyao Mine's capacity changed to 0.60 million tons/year, and Selian Coal Mine's approved capacity is 5.00 million tons/year Key Coal Operating Information | Coal Type | Output (tons) | Sales Volume (tons) | Sales Revenue (billion yuan) | Sales Cost (billion yuan) | Gross Profit (billion yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Thermal Coal | 33,776,574.60 | 28,198,296.01 | 10.82 | 4.66 | 6.16 | Coal Reserve Situation | Main Mining Area | Resource Reserves (tons) | Recoverable Reserves (tons) | | :--- | :--- | :--- | | Xinzhouyao Mine | 97,532,000 | 47,508,000 | | Tashan Coal Mine | 4,567,439,000 | 2,519,485,000 | | Selian Mine | 738,860,000 | 330,490,000 | | Total | 5,403,831,000 | 2,897,483,000 | - Xinzhouyao Mine's production capacity was changed to 0.60 million tons/year, and Selian Coal Mine's approved capacity is 5.00 million tons/year[49] V) Investment Status Analysis During the reporting period, the company did not undertake any significant equity investments, non-equity investments, or changes in financial assets measured at fair value VI) Major Asset and Equity Sales During the reporting period, the company did not engage in any major asset or equity sales VII) Analysis of Major Holding and Participating Companies The company's major holding subsidiary, Tashan Coal Mine, demonstrated strong profitability with a net profit of 2.50 billion yuan in 2019, where the company holds a 72% stake; Selian Coal Mine remained at a loss with a net profit of -469.43 million yuan, with the company holding a 51% stake; the participating company, Finance Company, earned 372.48 million yuan, with the company holding a 20% stake Operating Performance of Major Holding and Participating Companies | Company Name | Registered Address | Business Scope | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Net Profit (million yuan) | Shareholding Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tashan Coal Mine | Datong City, Shanxi Province | Coal production and sales | 2,072.54 | 17,811.16 | 14,236.43 | 10,328.60 | 2,500.53 | 72% | | Selian Coal Mine | Ordos City, Inner Mongolia Autonomous Region | Mining investment | 1,200.00 | 5,743.73 | 1,806.01 | 3,489.17 | -469.43 | 51% | | Finance Company | Datong City, Shanxi Province | Financial services | 3,000.00 | 23,202.62 | 5,720.25 | 1,009.06 | 372.48 | 20% | VIII) Information on Structured Entities Controlled by the Company During the reporting period, the company had no structured entities under its control III. Discussion and Analysis of the Company's Future Development The company faces multiple challenges including slowing global economic growth, weak coal demand, and international oil price drops, alongside internal issues such as mine safety risks, insufficient profitability, slow cultivation of quality assets, and difficulties in divesting non-performing assets; however, national policy support, Shanxi Province's high-quality development strategy, and coal's status as a primary energy source offer favorable opportunities for transformation, with the company aiming for high-quality development by deepening its core coal business, upgrading industrial structure, strengthening capital operations, and advancing technological breakthroughs - The company faces multiple external challenges, including slowing global economic growth, weak demand for power coal, increased coal imports, plummeting international crude oil prices, and the short-term impact of the COVID-19 pandemic[53] - The company's internal challenges include mine safety risks, insufficient coal profitability, slow progress in cultivating high-quality asset projects, and significant difficulties in debt and personnel disposal for divesting non-performing assets[54] - Favorable factors for the company's development include the macro background of national economic upgrading, technological innovation, deepening reform and opening-up, and green development, Shanxi Province's high-quality development policies, and coal's primary role in energy security[54] - The company's development strategy revolves around the goals of 'stricter, higher, stronger, and better,' aiming to build a 'new era Datong Coal' that is innovative, harmonious, prosperous, and revitalized, committed to consolidating and strengthening its competitive advantages in coal mining and processing, and becoming a first-class domestic and internationally competitive large-scale modern coal enterprise[55] I) Industry Landscape and Trends In 2020, the coal industry faces adverse factors such as slowing global economic growth, increased domestic economic downward pressure, growing new energy substitution, and the short-term impact of the COVID-19 pandemic, leading to decreased coal demand; simultaneously, increased coal railway capacity and accelerated production release are expected to gradually shift the market supply and demand towards a looser state, while the company itself faces challenges including safety risks, insufficient profitability, slow cultivation of quality projects, and difficulties in divesting non-performing assets - In 2020, coal consumption growth is expected to be limited, with accelerated domestic coal capacity release and increased transportation capacity, leading to a gradual shift towards a looser market supply and demand[53] - The company faces challenges such as mine safety risks, insufficient coal profitability, slow progress in cultivating high-quality asset projects, and significant difficulties in debt and personnel disposal for divesting non-performing assets[54] II) Company Development Strategy The company will focus on the goals of 'stricter, higher, stronger, and better' to build an 'innovative, harmonious, prosperous, and revitalized' new era Datong Coal, leveraging its strengths and the Datong Coal Group platform to accelerate resource reserves, industrial integration, scaled operations, and industrial deepening strategies, aiming to become a first-class domestic coal mining and deep processing enterprise and a large-scale modern coal enterprise with international competitive advantages - The company's strategic goal is to build an 'innovative, harmonious, prosperous, and revitalized' new era Datong Coal, consolidating and strengthening its competitive advantages in the coal mining and processing sector[55] - The company will accelerate the implementation of resource reserve, industrial integration, scaled operations, and industrial deepening strategies, striving to become a first-class domestic coal mining and deep processing enterprise and a large-scale modern coal enterprise with international competitive advantages[55] III) Operating Plan For 2020, the company plans a coal output of 31.20 million tons, commercial coal sales of 25.00 million tons, and coal business revenue of 10.40 billion yuan; it will focus on its core coal business, achieving high-quality development through capacity increases, enhanced single-mine output, green mining, and optimized labor organization, while also strengthening safety, upgrading industrial structure, improving capital operations, promoting precise sales, and vigorously pursuing technological breakthroughs to create an intelligent mining benchmark Key Operating Indicators for 2020 | Indicator | Plan | | :--- | :--- | | Coal Output | 31.20 million tons | | Commercial Coal Sales | 25.00 million tons | | Coal Business Revenue | 10.40 billion yuan | - The company will complete the capacity increase announcement procedures for Tashan Mine, accelerate the cultivation of super-grade safe and efficient mines, and comprehensively promote green coal mining to maximize resource recovery[56] - The company will strengthen precise governance of accident hazards, emphasize dynamic construction of safety production standardization, and enhance the implementation of safety production responsibilities to improve risk prevention and control capabilities[57] - The company plans to upgrade its industrial structure, vigorously promote circular economy and new energy projects, and gradually advance the establishment of industrial funds to leverage social capital for mergers and acquisitions[57] - The company will strengthen its capital operation capabilities, actively expand channels for asset restructuring and project mergers and acquisitions, and vigorously pursue various financing methods to ensure funding needs[57] - The company will promote precise and refined sales, adjust user and product structures, expand sales channels for high-priced coal, and vigorously promote auction sales[58] - The company will undertake technological breakthroughs, advance the upgrade and transformation of automated and intelligent fully mechanized mining equipment to achieve remote automatic control and intelligent coal discharge, and strive for Tashan Mine to complete the overall construction of a 'smart mine' by 2022[58] IV) Potential Risks The company faces safety production risks from natural disasters like roof falls, gas, and water hazards; market competition risks due to coal oversupply; rising cost risks from complex mining conditions and increased production factor costs; transformation and upgrading pressures from economic downturns and traditional industry modernization; and risks related to industrial policies and environmental protection - The company faces safety production risks from five major natural disasters in coal mining: roof falls, gas, coal dust, fires, and water hazards[59] - Market competition is fierce, with structural coal reduction and environmental restrictions leading to coal oversupply, making the market outlook not optimistic[59] - As mine excavation extends deeper, production conditions become more complex, and increased costs for production factors, safety production, and environmental protection lead to rising costs[59] - Slowing global economic growth, increased downward economic pressure, declining coal consumption growth, and the upgrading of traditional industries and enterprise transformation face immense pressure[59] - The company's operating activities are influenced by national industry regulation policies and environmental protection policies[59] Part V Significant Matters This section covers significant corporate events, including profit distribution plans, fulfillment of commitments, related party transactions, and environmental information, providing insights into the company's governance and social responsibilities I. Ordinary Share Profit Distribution or Capital Reserve Conversion Plan The company has revised its articles of association to clarify its cash dividend policy and minimum ratio; for the 2019 fiscal year, due to the parent company's unrecovered losses, no profit distribution or capital reserve conversion to share capital is proposed, and no ordinary share dividends have been distributed in the past three years - The company's net profit attributable to parent company shareholders for 2019 was 897.46 million yuan, but due to the parent company's unrecovered losses, it is proposed not to distribute profits or convert capital reserves into share capital[4][61] Ordinary Share Dividend Distribution Plans for the Past Three Years | Dividend Year | Bonus Shares per 10 Shares (shares) | Dividend per 10 Shares (yuan) (tax incl.) | Capitalization per 10 Shares (shares) | Cash Dividend Amount (tax incl.) (yuan) | Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Report for Dividend Year (yuan) | Ratio to Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Report (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2019 | 0 | 0 | 0 | 0 | 897,462,176.08 | 0 | | 2018 | 0 | 0 | 0 | 0 | 659,711,219.09 | 0 | | 2017 | 0 | 0 | 0 | 0 | 599,170,480.36 | 0 | II. Fulfillment of Commitments The company's controlling shareholder, Datong Coal Group, committed to gradually injecting high-quality coal production and operational assets into Datong Coal Industry and ensuring no substantive horizontal competition; for assets not yet meeting injection conditions, it committed to injecting, transferring control, or selling them within five years of meeting conditions, granting Datong Coal Industry priority purchase rights; during the reporting period, there was no explanation of asset or project profit forecasts or performance commitment fulfillment - Controlling shareholder Datong Coal Group committed to gradually injecting all high-quality coal production and operational assets into Datong Coal Industry, and to making Datong Coal Industry its sole entity operating coal mining and processing businesses within five to ten years (no later than 2014) after its initial public offering and listing[64] - Datong Coal Group further committed that for coal assets not yet meeting injection conditions, it would inject them into Datong Coal Industry, transfer control, or sell them within five years from the date conditions are met, and grant the company priority purchase rights[64] - During the reporting period, the company had no asset or project profit forecasts and no performance commitment fulfillment[65] III. Funds Occupied and Debt Clearance Progress During the Reporting Period During the reporting period, there were no instances of funds being non-operationally occupied by the controlling shareholder or its related parties IV. Explanation of the Auditor's 'Non-Standard Opinion Audit Report' The company's accounting firm, Lixin Certified Public Accountants (Special General Partnership), issued a standard unqualified audit report, indicating no non-standard opinion audit report - Lixin Certified Public Accountants issued a standard unqualified audit report for the company[3] V. Analysis and Explanation of Reasons and Impact of Changes in Accounting Policies, Accounting Estimates, or Major Accounting Error Corrections The company's analysis and explanation of the reasons and impact of changes in accounting policies and estimates are detailed in financial statement notes '39. Other Significant Accounting Policies and Estimates' and '40. Changes in Significant Accounting Policies and Estimates'; there were no major accounting error corrections or communications with the former accounting firm during the reporting period - The company's analysis and explanation of the reasons and impact of changes in accounting policies and estimates are detailed in financial statement notes '39. Other Significant Accounting Policies and Estimates' and '40. Changes in Significant Accounting Policies and Estimates' sections[66] VI. Appointment and Dismissal of Accounting Firms The company currently employs Lixin Certified Public Accountants (Special General Partnership) as its domestic accounting firm, with a remuneration of 1.70 million yuan and an audit tenure of four years; Lixin Certified Public Accountants also serves as the internal control audit firm, with a remuneration of 0.50 million yuan, and there were no changes in accounting firms during the reporting period Accounting Firm Appointment Status | Indicator | Content | | :--- | :--- | | Domestic Accounting Firm Name | Lixin Certified Public Accountants (Special General Partnership) | | Domestic Accounting Firm Remuneration | 1,700,000 yuan | | Domestic Accounting Firm Audit Tenure | 4 | | Internal Control Audit Firm | Lixin Certified Public Accountants (Special General Partnership) | | Internal Control Audit Remuneration | 500,000 yuan | VII. Situation Facing Delisting Risk During the reporting period, the company did not face any risk of suspension from listing VIII. Situation and Reasons for Facing Termination of Listing During the reporting period, there were no circumstances or reasons for the company facing termination of listing IX. Bankruptcy and Reorganization Related Matters During the reporting period, the company had no matters related to bankruptcy and reorganization X. Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters XI. Penalties and Rectification for Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholder, Actual Controller, and Acquirer During the reporting period, there were no penalties or rectification situations for the listed company, its directors, supervisors, senior management, controlling shareholder, actual controller, or acquirer XII. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no adverse records such as unfulfilled effective court judgments or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no adverse records[70] XIII. Information and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, there were no temporary announcements or subsequent progress regarding the company's equity incentive plans, employee stock ownership plans, or other employee incentive measures XIV. Major Related Party Transactions The company's routine related party transactions were disclosed in temporary announcements and approved by the Board of Directors and shareholders' meeting; during the reporting period, there were no undisclosed major related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships - The company's 2019 routine related party transactions were approved by the Board of Directors and the shareholders' meeting[72] XV. Major Contracts and Their Fulfillment The company has multiple entrusted management, contracting, and leasing related party transactions involving coal mines, equity, railway assets, and equipment, aimed at optimizing management and reducing costs; the total external guarantee amount is 815.77 million yuan, accounting for 12.74% of net assets, including 544.03 million yuan for the controlling shareholder and its related parties, and 271.74 million yuan for subsidiaries with a debt-to-asset ratio exceeding 70%; the company also provided 483 million yuan in entrusted loans to subsidiaries through its finance company Entrusted Management Status | Entrusting Party Name | Entrusted Party Name | Entrusted Asset Description | Entrustment Start Date | Entrustment End Date | Entrustment Income (yuan) | Is Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Datong Coal Group | The Company | Coal Mine | February 24, 2016 | February 24, 2021 | 1,000,000 | Yes | | Shuozhou Coal Power | The Company | Meiyukou Mine | April 1, 2017 | February 24, 2021 | 100,000 | Yes | | Datong Coal Group | The Company | Xuangang Coal Power Equity | April 28, 2016 | June 30, 2021 | 1,000,000 | Yes | | The Company | Datong Coal Mine Group Railway Operations Co., Ltd. | Railway Assets, etc. | July 1, 2019 | June 30, 2022 | Basic management fee (2 million yuan/year) + floating management fee | Yes | | Tashan Coal Mine | Baidong Mining | Baidong Mine Operation & Maintenance | February 1, 2019 | December 31, 2021 | 296.72 million yuan (excl. tax)/year | Yes | | Tashan Coal Mine | Baidong Mining | Coal Preparation Plant | February 1, 2019 | December 31, 2021 | 26 yuan/ton (excl. tax) | Yes | Contracting Status | Contracting-out Party Name | Contracting Party Name | Contracted Asset Description | Contracting Start Date | Contracting End Date | Contracting Income (yuan) | Is Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tashan Coal Mine | Yanya Coal Industry | Coal Mine Third Panel | January 1, 2019 | December 31, 2021 | 300 million yuan (excl. tax)/year, later adjusted to 17.5 million yuan (excl. tax) per month | Yes | Leasing Status | Lessor Name | Lessee Name | Leased Asset Description | Lease Start Date | Lease End Date | Lease Income (yuan) | Is Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Baidong Mining | Tashan Coal Mine | Machinery, electromechanical equipment, buildings, facilities | February 1, 2019 | | 27.28 million yuan (excl. tax) | Yes | | Datong Coal Group | The Company | Buildings | January 1, 2015 | December 31, 2019 | Annual rent 12,080,268.00 yuan | Yes | | Datong Coal Group | The Company | Land | | | Annual rent 2.46 million yuan | Yes | | Datong Coal Group | Tashan Coal Mine | Land | July 1, 2016 | June 30, 2021 | Annual rent 24.38 million yuan | Yes | | Datong Coal Group | The Company | Land | January 1, 2018 | January 1, 2023 | Annual rent 16 million yuan (tax incl.) | Yes | Company Guarantee Total | Indicator | Amount (yuan) | | :--- | :--- | | Total Guarantees (A+B) | 815,766,968 | | Proportion of Total Guarantees to Company's Net Assets (%) | 12.74% | | Amount of Guarantees Provided for Shareholders, Actual Controllers, and Their Related Parties (C) | 544,026,799 | | Amount of Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 271,740,169 | | Total of the Above Three Guarantee Amounts (C+D+E) | 815,766,968 | Entrusted Loan Status | Type | Source of Funds | Amount Incurred (yuan) | Outstanding Balance (yuan) | | :--- | :--- | :--- | :--- | | Entrusted Loans to Subsidiaries | Own Funds | 483,000,000 | 483,000,000 | XVI. Explanation of Other Significant Matters During the reporting period, there were no other significant matters requiring explanation from the company XVII. Work on Actively Fulfilling Social Responsibilities The company actively fulfills its social responsibilities, encompassing safety production, product quality, environmental protection, employment promotion, and employee rights protection; it balances economic and social benefits, builds a comprehensive safety management framework, drives technological innovation, implements environmental policies, and safeguards employee rights to achieve harmonious development with society and the environment - In its operations, the company strictly fulfills its social responsibilities, including safety production, product quality, environmental protection, employment promotion, and employee rights protection[87] - The company implements the philosophy that 'all work must obey and serve safety production,' establishing a comprehensive safety management framework with sound mechanisms and strict measures[87] - The company adheres to innovation-driven development, focusing on technological innovation to promote comprehensive innovation[87] - The company implements national environmental protection policies, reviews environmental plans, and supervises environmental management work[88] - The company diligently implements employment management systems, with all employees signing labor contracts, paying social insurance, and reasonably distributing wages according to the 'pay-for-performance' principle[88] I) Listed Company Poverty Alleviation Efforts During the reporting period, the company had no poverty alleviation efforts as a listed company II) Social Responsibility Work In its operations, the company actively fulfills its social responsibilities, encompassing safety production, product quality, environmental protection, employment promotion, and employee rights protection; it is committed to coordinating economic and social benefits, building a comprehensive safety management framework, driving technological innovation, implementing environmental policies, and safeguarding employee rights to achieve healthy and harmonious development with society and the environment - In its operations, the company strictly fulfills its social responsibilities, including safety production, product quality, environmental protection, employment promotion, and employee rights protection[87] - The company implements the philosophy that 'all work must obey and serve safety production,' establishing a comprehensive safety management framework with sound mechanisms and strict measures[87] - The company adheres to innovation-driven development, focusing on technological innovation to promote comprehensive innovation[87] - The company implements national environmental protection policies, reviews environmental plans, and supervises environmental management work[88] - The company diligently implements employment management systems, with all employees signing labor contracts, paying social insurance, and reasonably distributing wages according to the 'pay-for-performance' principle[88] III) Environmental Information The company's key polluting units, Xinzhouyao Mine and Tashan Mine Baidong Well, were listed as key polluting enterprises in Datong City in 2019, with main pollutants being exhaust gas, wastewater, and solid waste; both mines have installed and operate desulfurization and dust removal equipment and sewage treatment plants, with treated water meeting standards or being reused; the company and its subsidiaries have prepared environmental impact assessment reports, emergency response plans for environmental incidents, and self-monitoring plans, which are filed and monitored as required; during the reporting period, Xinzhouyao Mine and Tashan Baidong Well were fined for boiler emissions and coal gangue stacking, respectively - Xinzhouyao Mine and Tashan Mine Baidong Well are listed as key polluting enterprises in Datong City, with major pollutants including exhaust gas (sulfur dioxide, nitrogen oxides, particulate matter), domestic wastewater, and solid waste[89] - Xinzhouyao Mine's boiler room is equipped with desulfurization and dust removal equipment, all boilers at Tashan Mine Baidong Well have desulfurization and dust removal equipment, and mine water and domestic wastewater are fully reused or discharged up to standard after treatment[90] - The company and its subsidiaries have all prepared environmental impact assessment reports, emergency response plans for environmental incidents, and environmental self-monitoring plans, which are filed and monitored as required[91][92][93] - In 2019, Xinzhouyao Mine was fined 100,000 yuan and 300,000 yuan for boiler emissions, and Tashan Baidong Well was fined 50,000 yuan for coal gangue stacking[94] - Non-key polluting units such as Tashan Coal Mine, Selian Coal Mine, Activated Carbon Company, Kaolin Company, and Tashan Railway also possess discharge permits, pollution control facilities, environmental impact assessments, emergency plans, and self-monitoring programs[95][96][97][98][99][100] XVIII. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds Part VI Changes in Ordinary Shares and Shareholder Information This section details changes in the company's ordinary share capital, securities issuance, and shareholder structure, including information on major shareholders and the actual controller I. Changes in Ordinary Share Capital During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure, thus having no impact on financial indicators such as earnings per share or net assets per share - During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure[102] II. Securities Issuance and Listing As of the reporting period, the company had no securities issuance, and no changes occurred in its total ordinary share capital, shareholder structure, or asset and liability structure, nor were there any existing internal employee shares III. Shareholders and Actual Controller Information As of the end of the reporting period, the company had 85,064 ordinary shareholders; Datong Coal Mine Group Co., Ltd., as the controlling shareholder, held 57.46% of shares, making it the largest shareholder; state-owned corporate shareholders dominated among the top ten shareholders, while Hong Kong Securities Clearing Company Limited's shareholding decreased - As of the end of the reporting period, the company had a total of 85,064 ordinary shareholders[103] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Datong Coal Mine Group Co., Ltd. | 961,632,508 | 57.46 | State-owned Legal Person | | Central Huijin Asset Management Co., Ltd. | 31,924,200 | 1.91 | State-owned Legal Person | | Hebei Port Group Co., Ltd. | 26,592,080 | 1.59 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 11,250,564 | 0.67 | Other | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | 8,646,187 | 0.52 | Other | | Wang Shuxia | 4,006,600 | 0.24 | Domestic Natural Person | | Datong Xintong Industrial Co., Ltd. | 3,800,000 | 0.23 | State-owned Legal Person | | Bank of China Co., Ltd. - China Merchants CSI Coal Equal Weight Index Fund | 3,626,397 | 0.22 | Other | | Shanghai Baosteel International Economic & Trade Co., Ltd. | 3,582,000 | 0.21 | State-owned Legal Person | | Zhang Minhui | 3,520,006 | 0.21 | Domestic Natural Person | IV. Controlling Shareholder and Actual Controller Information The company's controlling shareholder is Datong Coal Mine Group Co., Ltd., holding 57.46% of shares, primarily engaged in coal production and processing, mechanical manufacturing, and engineering construction; the actual controller is the Shanxi Provincial State-owned Assets Supervision and Administration Commission; neither the controlling shareholder nor the actual controller changed during the reporting period Controlling Shareholder Information | Name | Datong Coal Mine Group Co., Ltd. | | :--- | :--- | | Person in Charge or Legal Representative | Guo Jingang | | Date of Establishment | August 4, 1985 | | Main Business Operations | Coal production and processing, mechanical manufacturing, engineering construction, etc. | | Equity Holdings in Other Domestic and Overseas Listed Companies During the Reporting Period | Holds 29.43% shares in Shanxi Zhangze Electric Power Co., Ltd.; holds 0.47% shares in Daqin Railway Co., Ltd.; holds 0.74% shares in Qinhuangdao Port Co., Ltd. | - The company's actual controller is the Shanxi Provincial State-owned Assets Supervision and Administration Commission[108] - During the reporting period, neither the controlling shareholder nor the actual controller changed[107][108] V. Other Corporate Shareholders Holding More Than 10% During the reporting period, the company had no other corporate shareholders holding more than 10% of its shares VI. Explanation of Shareholding Restriction on Reduction During the reporting period, there was no explanation regarding shareholding restrictions on reduction for the company Part VII Preferred Share Related Information During the reporting period, the company had no preferred share related information Part VIII Information on Directors, Supervisors, Senior Management, and Employees This section details the shareholding and remuneration of directors, supervisors, and senior management, their appointments and changes, and the overall employee structure and training initiatives I. Shareholding Changes and Remuneration During the reporting period, current and former directors, supervisors, and senior management did not hold any company shares, nor did their shareholdings change; some senior executives received remuneration from related parties of the company, and no equity incentives were granted to directors or senior management - During the reporting period, none of the company's directors, supervisors, or senior management held company shares, nor were there any changes in their shareholdings[111] - Some senior executives received remuneration from the company's related parties[111] - During the reporting period, there were no instances of directors or senior management being granted equity incentives[115] II. Appointments of Current and Former Directors, Supervisors, and Senior Management During the Reporting Period Several of the company's directors and supervisors hold positions within the controlling shareholder Datong Coal Group and its subsidiaries, or other entities such as Hebei Port Group Co., Ltd. and Shanghai Baosteel International Economic & Trade Co., Ltd., reflecting the company's close ties with related parties - Several directors and supervisors hold positions in the controlling shareholder Datong Coal Group and its subsidiaries, such as Zhao Jie as Chief Economist and Acting Chief Accountant of Datong Coal Group, and Cao Xianqing as Chief Legal Counsel of Datong Coal Group[116] - Some independent directors hold positions such as professors or lawyers in universities, law firms, and other entities[117] III. Remuneration of Directors, Supervisors, and Senior Management The remuneration for directors and supervisors is approved by the shareholders' meeting, while senior management's remuneration is determined by the Board of Directors, primarily based on duties, responsibilities, and company performance; at the end of the reporting period, the total actual remuneration received by all directors, supervisors, and senior management was 3.27 million yuan - The remuneration for directors and supervisors must be approved by the shareholders' meeting, while the remuneration for senior management is determined by the Board of Directors[118] - At the end of the reporting period, the total actual remuneration received by all directors, supervisors, and senior management was 3.27 million yuan[118] IV. Changes in Company Directors, Supervisors, and Senior Management During the reporting period, there were multiple changes in the company's Board of Directors, Supervisory Board, and senior management, including the departures of Liu Jing, Li Jingzhong, Xuan Hongbin, Han Jian, Yu Dahai, Zhang Youxi, Zhao Guoxi, Zhang Bin, and Wang Qing, as well as the appointments or elections of Ye Ninghua, Zhu Haiyue, Zhao Jie, Rong Jun, Ma Zhanyuan, Fan Shixing, and Hu Jinyuan - Several directors (Liu Jing, Li Jingzhong, Xuan Hongbin, Han Jian, Yu Dahai, Zhang Youxi) and supervisors (Zhao Guoxi) resigned due to work changes or age-related reasons[119] - Several new directors (Ye Ninghua, Zhu Haiyue, Zhao Jie, Rong Jun, Ma Zhanyuan) and supervisors (Fan Shixing) were elected, and Hu Jinyuan was appointed as Chief Engineer[119] V. Employee Information of Parent Company and Major Subsidiaries As of the e