Yanzhou Coal Mining : Interim Report 2019

Interim Report 2019

Important Notice

The Board, Supervisory Committee and the Directors, Supervisors and senior management of the Company warrant the authenticity, accuracy and completeness of the information contained in this interim report and there are no any misrepresentations, misleading statements contained in or material omissions from the interim report for which they shall assume joint and several responsibilities.

The 2019 Interim Report of the Company has been approved by the twenty-seventh meeting of the seventh session of the Board. All eleven Directors of quorum attended the meeting.

The financial statements in the 2019 Interim Report of the Company Limited have not been audited.

The 2019 Interim Report of the Company has been reviewed and approved by the audit committee of the Board.

Mr. Li Xiyong, Chairman of the Board, Mr. Zhao Qingchun, Chief Financial Officer, and Mr. Xu Jian, head of the finance management department of the Company, hereby warrant the authenticity, accuracy and completeness of the financial statements contained in this interim report.

The Board of the Company proposed a cash dividend of RMB10.00 per ten shares (tax inclusive) on the basis of 4,912,016,000 shares, which is the total share capital of the Company as at 30 June 2019.

The forward-looking statements contained in this interim report regarding the Company's future plans do not constitute any substantive commitment to investors and investors are reminded of the investment risks.

There was no appropriation of funds of the Company by the Controlling Shareholder or its related parties for non-operational activities

There were no guarantees granted to external parties by the Company which are against the prescribed decision-making procedures.

The Company has disclosed the main risks faced by the Group, the influences and the countermeasures in this interim report. For details, please refer to the relevant content in "Chapter 4 Board of Directors' Report", to which the investors' attention are drawn.

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Contents

Chapter 1	DEFINITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Chapter 2	GROUP PROFILE AND MAJOR FINANCIAL INDICATORS . . . . . . . . . . . . . . . . .	4
Chapter 3	BUSINESS HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
Chapter 4	BOARD OF DIRECTORS' REPORT . . . . . . . . . . . . . . . . . . . . . . . . .	9
Chapter 5	SIGNIFICANT EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	30
Chapter 6	CHANGES IN ORDINARY SHARES AND SHAREHOLDERS . . . . . . . . . . . . . . . .	91
Chapter 7	DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT . . . . . . . . . . . . . . . .	96
Chapter 8	CORPORATE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	99
Chapter 9	CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . .	107
Chapter 10	DOCUMENTS AVAILABLE FOR INSPECTION . . . . . . . . . . . . . . . . . . . . .	154

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Chapter 1 Definition

In this interim report, unless the context requires otherwise, the following expressions have the following meanings:

Definitions

"Yanzhou Coal", "Company" or	means	Yanzhou Coal Mining Company Limited, a joint stock limited company
"the Company"		incorporated under the laws of the PRC in 1997 and the H Shares and
		A Shares of which are listed on the Hong Kong Stock Exchange and the
		Shanghai Stock Exchange, respectively;
"Group" or "the Group"	means	The Company and its subsidiaries;
"Yankuang Group" or	means	Yankuang Group Company Limited, a company with limited liability
"the Controlling Shareholder"		reformed and established under the laws of the PRC in 1996, being the
		controlling shareholder of the Company directly and indirectly holding
		51.81% of the total share capital of the Company as at the end of the
		reporting period;
"Yulin Neng Hua"	means	Yanzhou Coal Yulin Neng Hua Company Limited, a company with limited
		liability incorporated under the laws of the PRC in 2004 and a wholly-
		owned subsidiary of the Company which is mainly engaged in the
		production and operation of the methanol project in Shaanxi Province;
"Heze Neng Hua"	means	Yanmei Heze Neng Hua Company Limited, a company with limited liability
		incorporated under the laws of the PRC in 2004 and a 98.33% owned
		subsidiary of the Company as at the end of the reporting period, which is
		mainly engaged in the development and operation of coal resources and
		electric power business in Juye coalfield, Heze City, Shandong Province;
"Shanxi Neng Hua"	means	Yanzhou Coal Shanxi Neng Hua Company Limited, a company with
		limited liability incorporated under the laws of the PRC in 2002 and a
		wholly-owned subsidiary of the Company, which is mainly engaged in the
		management of the projects invested in Shanxi Province by the Company;
"Hua Ju Energy"	means	Shandong Hua Ju Energy Company Limited, a joint stock limited
		company incorporated under the laws of the PRC in 2002 and a 95.14%
		owned subsidiary of the Company as at the end of the reporting period,
		which is mainly engaged in the thermal power generation with gangue
		and coal slurry and heating supply business;
"Ordos Neng Hua"	means	Yanzhou Coal Ordos Neng Hua Company Limited, a company with
		limited liability incorporated under the laws of the PRC in 2009 and a
		wholly-owned subsidiary of the Company, which is mainly engaged in the
		development and operation of coal resources and coal chemical projects
		of the Company in the Inner Mongolia Autonomous Region;

Yanzhou Coal Mining Company Limited Interim Report 2019 1

Chapter 1 Definition - CONTINUED

"Haosheng Company"	means	Inner Mongolia Haosheng Coal Mining Company Limited, a company
		with limited liability incorporated under the laws of the PRC in 2010 and a
		77.74% owned subsidiary of the Company,as at the end of the reporting
		period, which is mainly engaged in the production and operation of
		Shilawusu coal mine in Ordos, Inner Mongolia Autonomous Region;
"Donghua Heavy Industry"	means	Yankuang Donghua Heavy Industry Company Limited, a company with
		limited liability incorporated under the laws of the PRC in 2013 and a
		wholly-owned subsidiary of the Company, which is mainly engaged in
		the design, manufacture, installation, repair and maintenance of mining
		equipment, electromechanical equipment and parts;
"Zhongyin Financial Leasing"	means	Zhongyin Financial Leasing Company Limited, a company with limited
		liability incorporated under the laws of the PRC in 2014 and a wholly-
		owned subsidiary of the Company, which is mainly engaged in the
		financial leasing, leasing, leasing trade consultation and guarantees,
		commercial factoring related to main business, etc.;
"Duanxin Beijing"	means	Duanxin Investment Holding (Beijing) Company Limited, a company with
		limited liability incorporated under the laws of the PRC in 2014 and a
		wholly-owned subsidiary of the Company, which is mainly engaged in
		project investment, enterprise management, investment management,
		enterprise management consultation, investment consultation, etc.;
"Yankuang Finance Company"	means	Yankuang Group Finance Co., Ltd., a company with limited liability
		incorporated under the laws of the PRC in September 2010 and a 90%
		owned subsidiary of the Company as at the end of the reporting period;
"Yancoal Australia"	means	Yancoal Australia Limited, a company with limited liability incorporated
		under the laws of Australia in 2004 and a 62.26% owned subsidiary of the
		Company as at the end of the reporting period, the shares of which are
		traded on the Australian Securities Exchange and the HKEX respectively;
"Yancoal International"	means	Yancoal International (Holding) Company Limited, a company with limited
		liability incorporated under the laws of Hong Kong in 2011 and a wholly-
		owned subsidiary of the Company;
"Yancoal International Resources"	means	Yancoal International Resources Development Company Limited, a
		company with limited liability incorporated under the laws of Hong Kong in
		2011 and a wholly-owned subsidiary of Yancoal International;
"C&A"	means	Coal & Allied Industries Limited, a company with limited liability
		incorporated under the laws of Australia and a wholly-owned subsidiary of
		Yancoal Australia;

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