China Shenhua Energy : 2018 Interim Report

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

Stock Code: 01088

Focus on Core Coal Business, Strengthen Synergistic Innovations

2018

Interim Report

Important Notice

• I. The board of directors, supervisory committee and directors, supervisors and senior management of the Company warrant that this interim report does not contain any misrepresentations, misleading statements or material omissions, and are jointly and severally liable for the authenticity, accuracy and completeness of the information contained in this report.

• II. This report was approved at the twelfth meeting of the fourth session of the Board of the Company. Six out of ten eligible directors attended the meeting in person. Gao Song being a Director could not attend the meeting due to business engagement, and Li Dong being a Director acted as the proxy of him to attend the meeting and voted on behalf of him; Mi Shuhua being a Director could not attend the meeting due to business engagement, and Ling Wen being a Director acted as the proxy of him to attend the meeting and voted on behalf of him; Zhao Jibin being a Director could not attend the meeting due to business engagement, and Li Dong being a Director acted as the proxy of him to attend the meeting and voted on behalf of him; Peng Suping being a Director could not attend the meeting due to business engagement, and Jiang Bo being a Director acted as the proxy of him to attend the meeting and voted on behalf of him.

• III. The interim financial statements in this report is unaudited. Deloitte Touche Tohmatsu has issued a report on the review of the interim financial statements for 2018 prepared under the International Financial Reporting Standards.

• IV. Ling Wen, Chairman of the Company, Zhang Kehui, Chief Financial Officer, and Ban Jun, person-in-charge of the accounting department, warrant the authenticity, accuracy and completeness of the financial report contained in this interim report.

• V. Profit distribution plan or reserve funds capitalisation plan for the reporting period considered by the board of directors: not applicable

• VI. Disclaimer of forward-looking statements

  The forward-looking statements in this report made on the basis of subjective assumptions and judgments on future policies and economic conditions, which are subject to risks, uncertainties and assumptions, and may differ materially from the actual outcome. Such statements do not constitute actual commitments to investors. Investors should be aware that undue reliance on or use of such information may lead to risks of investment.

• VII. Are there any situations of non-operating appropriation of funds by controlling shareholder(s) and its related parties? No

• VIII. Are there any situations of violation of decision-making procedures for external guarantee provision? No

• IX. Warning on Major Risks:

  Investors please note that the Company has disclosed risks including market competition, environmental protection and overseas operation, etc. in the section headed "Discussion and Analysis on Operation Results".

Cover Photo: 8.8-meter ultra-mining height intelligent working face at Shangwan Mine of Shendong Mines

Contents

Section I	Definitions
Section II	Company Profile and Major Financial Indicators
Section III	Business Overview
Section IV	Chairman's Statement
Section V	Discussion and Analysis on Operation Results
Section VI	Significant Events
Section VII	Changes in Share Capital and Shareholders
Section VIII	Directors, Supervisors, Senior Management and Employees	84
Section IX	Investor Relations	88
Section X	Report on Review of Condensed Consolidated	89
Financial Statements
Section XI	Documents Available for Inspection	138
Section XII	Signing Page for Opinions	139

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China Shenhua Energy Company Limited

Section IDefinitions

Unless the context otherwise requires, the following terms used in this report have the following meanings:

China Shenhua/the CompanyChina Shenhua Energy Company Limited

The Group

The Company and its subsidiaries

China Energy/Shenhua Group

Corporation

China Energy Investment Corporation Limited (਷࢕ঐ๕ҳ༟ණྠϞ ࠢப΂ʮ̡), the new name of Shenhua Group Corporation Limited (ग़ശණྠϞࠢப΂ʮ̡)

China Energy Group/

Shenhua Group

China Guodian

China Energy and its subsidiaries (excluding the Group)

China Guodian Group Co., Ltd. (ʕ਷਷ཥණྠϞࠢʮ̡)

Guodian Group

China Guodian and its subsidiaries

GD Power

GD Power Development Co., Ltd.

Shendong Coal Corporation

Shenhua Shendong Coal Group Co., Ltd.

Shendong Power Company

Shenhua Shendong Power Co., Ltd.

Zhunge'er Energy Company

Shenhua Zhunge'er Energy Co., Ltd.

Shuohuang Railway

Development Company

Railway Transportation Company

Shuohuang Railway Development Co., Ltd.

Shenhua Railway Transportation Co., Ltd.

Shenhua Trading Group

Shenhua Trading Group Limited

Huanghua Harbour

Administration Company

Baotou Energy Company

Shenhua Huanghua Harbour Administration Co., Ltd.

Shenhua Baotou Energy Co., Ltd.

Baotou Coal Chemical Company

Shenhua Baotou Coal Chemical Co., Ltd.

Shenbao Energy Company

Shenhua Baorixile Energy Co., Ltd.

Shenhua Zhuhai Coal Dock

Shenhua Yudean Zhuhai Port Coal Dock Co., Ltd.

Overseas Company

China Shenhua Overseas Development & Investment Co., Ltd.

Yu Shen Energy Company

Yulin Shenhua Energy Co., Ltd.

Xinjie Energy Company

Shenhua Xinjie Energy Co., Ltd.

Shenwan Energy Company

Shenwan Energy Company Limited

2018 Interim Report

3

Section I

Definitions(Continued)

Fujian Energy Company	Shenhua Fujian Energy Co., Ltd.
Shenhua Finance Company	Shenhua Finance Co., Ltd.
EMM Indonesia	PT.GH EMM INDONESIA
Panshan Power	Tianjin Guohua Panshan Power Generation Co., Ltd.
Sanhe Power	Sanhe Power Co., Ltd.
Guohua Zhunge'er	Inner Mongolia Guohua Zhunge'er Power Generation Co., Ltd.
Zhunge'er Power	Power-generating division controlled and operated by Zhunge'er
Energy Company
Zheneng Power	Zhejiang Guohua Zheneng Power Generation Co., Ltd.
Shenmu Power	CLP Guohua Shenmu Power Co., Ltd.
Taishan Power	Guangdong Guohua Yudean Taishan Power Co., Ltd.
Cangdong Power	Hebei Guohua Cangdong Power Co., Ltd.
Suizhong Power	Suizhong Power Co., Ltd.
Jinjie Energy	Shaanxi Guohua Jinjie Energy Co., Ltd.
Dingzhou Power	Hebei Guohua Dingzhou Power Generation Co., Ltd.
Guohua Hulunbei'er Power	Inner Mongolia Guohua Hulunbei'er Power Generation Co., Ltd.
Taicang Power	Guohua Taicang Power Generation Co., Ltd.
Mengjin Power	Shenhua Guohua Mengjin Power Generation Co., Ltd.
Yuyao Power	Zhejiang Guohua Yuyao Gas-fired Power Co., Ltd.
Jiujiang Power	Shenhua Guohua Jiujiang Power Co., Ltd.
Zhuhai Wind Energy	Zhuhai Guohua Huidafeng Wind Energy Development Co., Ltd.
Huizhou Thermal	Guohua Huizhou Thermal Power Branch of the Company
Ningdong Power	Ningxia Guohua Ningdong Power Generation Co., Ltd.
Xuzhou Power	Guohua Xuzhou Power Generation Company Limited
Zhoushan Power	Shenhua Guohua (Zhoushan) Power Generation Co., Ltd.