China Coal Energy : FIRST QUARTERLY REPORT 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國中煤能源股份有限公司

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01898)

FIRST QUARTERLY REPORT 2019

Pursuant to the regulations and rules of China Securities Regulatory Commission and Shanghai Stock Exchange (the "SSE"), China Coal Energy Company Limited (the "Company" or "China Coal Energy", together with its subsidiaries, collectively the "Group") is required to publish reports on a quarterly basis.

This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

This announcement is a summary of the 2019 first quarterly financial report of the Company for the three months ended 31 March 2019. The full text of the quarterly financial report will be available on the website of The Stock Exchange of Hong Kong Limited (the "HKSE") on 23 April 2019. The full text of the quarterly financial report is in Chinese only.

I.	IMPORTANT NOTICE
	1.1	The board of directors and the supervisory committee of the Company together with
		the directors, supervisors and the senior management thereof guarantee that the content
		of this quarterly report is true, accurate and complete and does not contain any false
		representations, misleading statements or material omissions, and severally and jointly
		accept legal responsibility for the content of this report.
	1.2	Directors absent
			Name of director	Position of	Reasons for	Name of proxy
			absent	director absent	absence
			Leung Chong Shun	Independent director	Other work	Zhang Ke
					commitment
	1.3		Li Yanjiang (the person-in-charge of the Company), Chai Qiaolin (the person-in-charge
			of accounting affairs) and Zheng Weili (the person responsible for the accounting
			department, i.e. head of the accounting department) guarantee that the financial
			statements set out in this quarterly report are true, accurate and complete.
	1.4		The first quarterly report of the Company is unaudited.

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II.GENERAL INFORMATION OF THE COMPANY 2.1 Major financial data

			Unit: RMB'000
			Increase/decrease
			at the end of the
			reporting period as
		As at the end of	compared to the end
	As at the end of the	the previous year	of the previous year
	reporting period	(Restated)	(%)
Total assets	269,182,580	264,355,047	1.8
Net assets attributable to
shareholders of the listed
company	93,742,902	92,107,431	1.8
		From the beginning	Increase/decrease
		of the previous year	compared to the
		to the end of the	corresponding
	From the beginning of	corresponding period	period of the
	the year to the end of	of the previous year	previous year
	the reporting period	(Restated)	(%)
Net cash flows generated from
operating activities	4,133,840	832,103	396.8
		From the beginning	Increase/decrease
		of the previous year	compared to the
		to the end of the	corresponding
	From the beginning of	corresponding period	period of the
	the year to the end of	of the previous year	previous year
	the reporting period	(Restated)	(%)
Operational revenue	29,552,412	25,955,736	13.9
Net profit attributable to
shareholders of the listed
company	1,541,065	1,391,746	10.7
Net profit attributable to
shareholders of the listed
company net of non-recurring
gains or losses	1,529,700	1,386,999	10.3
Weighted average return on net			Increased by 0.13
assets (%)	1.66	1.53	percentage point
Basic earnings per share
(RMB per share)	0.116	0.105	10.5
Diluted earnings per share
(RMB per share)	0.116	0.105	10.5

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Non-recurring gains or losses and relevant amounts

√ Applicable  □ Not applicable

		Unit: RMB'000
	Amount for
	the reporting
Item	period	Explanations
Profit and loss on disposal of non-current
assets	280	-
Government grants included in profit or loss
for the reporting period, excluding those
closely related to the Company's ordinary
business and granted on an on-going basis in
fixed amount or volume according to certain
principles under national policies	34,949	-
Net profit or loss for the period of subsidiaries
formed by business combination under
common control from the beginning of the
period to the date of combination	-9,715	-
Other non-operating income and expenses apart
from the foregoing	-3,161	-
Impact on minority shareholders' interests
(after tax)	-5,108	-
Effect of income tax	-5,880	-
Total	11,365	-

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2.2Major production and operational data

							Unit: RMB
						January to
					January to	March, 2018	Percentage
Item				Unit	March, 2019	(Restated)	change %
I.	Coal operations
	1. Production volume of commercial
		coal		10,000 tonnes	2,460	1,781	38.1
		Of which: Thermal coal		10,000 tonnes	2,158	1,558	38.5
			Coking coal	10,000 tonnes	302	223	35.4
	2. Sales volume of commercial coal			10,000 tonnes	5,030	3,783	33.0
		(1) Sales volume of self-
			produced coal	10,000 tonnes	2,382	1,666	43.0
			Of which: external sales
			volume	10,000 tonnes	2,243	1,632	37.4
		(2)	Sales volume of proprietary
			coal trading	10,000 tonnes	2,429	2,040	19.1
			Of which: external sales
			volume	10,000 tonnes	2,221	1,846	20.3
		(3)	Agency sales of coal	10,000 tonnes	219	77	184.4
II.	Coal chemical operations
	(I)	Polyolefin
		1.	Polyethylene production
			volume	10,000 tonnes	18.3	18.3	0.0
			Sales volume	10,000 tonnes	17.4	18.9	-7.9
		2.	Polypropylene production
			volume	10,000 tonnes	17.6	18.0	-2.2
			Sales volume	10,000 tonnes	14.7	16.4	-10.4
	(II)	Urea
		1.	Production volume	10,000 tonnes	48.0	46.1	4.1
		2.	Sales volume	10,000 tonnes	78.0	45.1	72.9
	(III) Methanol
		1.	Production volume	10,000 tonnes	25.0	14.2	76.1
		2.	Sales volume	10,000 tonnes	21.9	13.4	63.4
			Of which: external sales
			volume	10,000 tonnes	5.2	1.8	188.9
III. Coal mining equipment operations
	1. Output value of coal mining
		equipment		RMB100 million	20.4	16.4	24.4

Note: The sales volume of commercial coal, urea and methanol of the Company in 2019 includes the internal self-consumption, and the relative data of 2018 is adjusted correspondingly.

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2.3Major differences arising from the adoption of different accounting standards in preparing the financial statements

				Unit: RMB'000
	Net profit attributable to		Net assets attributable to
	shareholders of the		shareholders of the
	listed company		listed company
		January to		As at 31
	January to	March, 2018	As at 31	December 2018
	March, 2019	(Restated)	March 2019	(Restated)
According to PRC GAAP	1,541,065	1,391,746	93,742,902	92,107,431
Items and amounts adjusted according to IAS:
(a) Adjustment to special funds and
deferred tax of the coal industry	139,894	297,761	5,000	28,680
(b) Adjustment to floating of non-
tradable shares under equity split	-	-	-155,259	-155,259
(c) Adjustment to government grants	927	927	-28,753	-29,680
According to IAS	1,681,886	1,690,434	93,563,890	91,951,172

Explanations on major reconciliations are as follows:

(a)Adjustment to special reserves and relevant deferred tax: special reserves comprise maintenance fee, safety fund, coal mine transformation fund, mining environmental restoration security deposit and sustainable development reserve. Under PRC GAAP, the Group should make provisions for the special reserves which will be accounted as the production cost and contributions made to the special reserves of equity attributable to shareholders. Non-capital expenditure incurred should be directly offset against special reserves upon occurrence, while capital expenditure incurred should be recorded as fixed assets upon completion, and offset against special reserves based on the cost of the fixed assets with accumulated depreciation fully recognised. After that, no subsequent provisions for depreciation would be made to the relevant fixed assets. Under IFRS, provisions made for the special reserves should be recorded as retained earnings provision while the relevant expenditures are recognised upon occurrence and the special reserves are accordingly transferred to retained earnings.

(b)Under PRC GAAP, the consideration paid by holders of non-tradable shares to holders of tradable shares in accordance with the reform proposal of equity split should be recorded as long-term equity investments in the balance sheet. Under IFRS, such consideration shall be recorded as interests of minority shareholders directly deducted from the equity attributable to shareholders.

(c)Under PRC GAAP, subsidies considered as capital investment by the government should be recorded in "capital reserve". Under IFRS, the subsidies mentioned above shall be treated as government grants.

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