China Shenhua Energy : ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER

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

(Stock Code: 01088)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIAL HIGHLIGHTS

• • Revenue of the Group in 2018 were RMB264,101 million, representing an increase of RMB15,355 million or 6.2% over 2017.

• • Profit for the year attributable to equity holders of the Company in 2018 was RMB44,137 million, representing a decrease of RMB3,658 million or 7.7% over 2017.

• • Basic earnings per share was RMB2.219.

• • The Board recommend the payment of: a final dividend in cash of RMB0.88 per share (tax inclusive) or RMB17,503 million (tax inclusive) for the year of 2018.

The Board of China Shenhua Energy Company Limited (the "Company" or "China Shenhua") presented the annual results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018 and reported our performance for the year.

FINANCIAL INFORMATION

Financial information extracted from the audited consolidated financial statements for the year ended 31 December 2018 prepared in accordance with International Financial Reporting Standards ("IFRSs"):

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2018

Year ended 31 December 20182017

RMB millionRMB million

Revenue

Goods and services	264,101	248,746
Cost of sales	(173,677)	(160,460)
Gross profit	90,424	88,286
Selling expenses	(725)	(612)
General and administrative expenses	(9,854)	(9,115)
Research and development costs	(454)	(341)
Other gains and losses	(2,844)	(1,880)
Other income	744	894
Impairment losses, net of reversal	(152)	-
Other expenses	(3,504)	(1,262)
Interest income	1,479	1,205
Finance costs	(5,421)	(4,416)
Share of results of associates	448	534
Profit before income tax	70,141	73,293
Income tax expense	(15,977)	(16,155)
Profit for the year	54,164	57,138

Year ended 31 December 20182017

RMB millionRMB million

Other comprehensive (expense) income for the year

Items that will not be reclassified to profit or loss, net of income tax:

Remeasurement of defined benefit obligations Fair value gain on investments in equity instruments at fair value through other comprehensive income

Items that may be reclassified subsequently to profit or loss, net of income tax:

Exchange differences

Share of other comprehensive income (expense)

of associates

Fair value gain on available-for-sale financial assets

Other comprehensive income (expense) for the year, net of income tax

(30)

66 36

11

- 11

120(210)

13(3)

-4

133(209)

169(198)

Total comprehensive income for the yearProfit for the year attributable to:

Equity holders of the Company Non-controlling interests

Total comprehensive income for the year attributable to:

Equity holders of the Company Non-controlling interests

Earnings per share(RMB)

- Basic

54,33356,940

44,13747,795

10,0279,343

54,16457,138

44,26247,637

10,0719,303

54,33356,940

2.2192.403

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAT 31 DECEMBER 2018

31 December	31 December
2018	2017
RMB million	RMB million
Non-current assets
Property, plant and equipment	257,349	329,970
Construction in progress	36,585	39,054
Exploration and evaluation assets	951	998
Intangible assets	3,623	3,447
Interests in associates	10,047	9,513
Available-for-sale investments	-	854
Equity instruments at fair value through other
comprehensive income	811	-
Other non-current assets	29,456	33,466
Lease prepayments	16,425	17,858
Deferred tax assets	3,083	3,798
Total non-current assets	358,330	438,958
Current assets
Inventories	9,967	11,647
Accounts and bills receivables	13,055	19,455
Prepaid expenses and other current assets	54,702	20,452
Restricted bank deposits	8,607	7,348
Time deposits with original maturity over three
months	1,735	1,870
Cash and cash equivalents	61,863	71,872
149,929	132,644
Assets classified as held for sale	83,367	-
Total current assets	233,296	132,644

31 December	31 December
2018	2017
RMB million	RMB million
Current liabilities
Borrowings	5,772	15,785
Accounts and bills payables	26,884	33,914
Accrued expenses and other payables	52,737	51,995
Current portion of medium-term notes	-	4,995
Current portion of bonds	-	3,267
Current portion of long-term liabilities	457	345
Income tax payable	4,213	5,604
Contract liabilities	3,404	-
93,467	115,905
Liabilities associated with assets classified
as held for sale	29,914	-
Total current liabilities	123,381	115,905
Net current assets	109,915	16,739
Total assets less current liabilities	468,245	455,697
Non-current liabilities
Borrowings	46,765	64,321
Bonds	6,823	6,485
Long-term liabilities	2,092	2,292
Accrued reclamation obligations	3,191	2,745
Deferred tax liabilities	537	749
Total non-current liabilities	59,408	76,592
Net assets	408,837	379,105
Equity
Share capital	19,890	19,890
Reserves	311,803	285,651
Equity attributable to equity holders of the Company	331,693	305,541
Non-controlling interests	77,144	73,564
Total equity	408,837	379,105