China Coal Energy : FIRST QUARTERLY REPORT 2021

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 2021

Pursuant to the regulations and rules of China Securities Regulatory Commission and Shanghai Stock Exchange, 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 2021 first quarterly financial report of the Company for the three months ended 31 March 2021. 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 22 April 2021. The full text of the quarterly financial report is in Chinese only.

1. 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	Absence of director
		Name of absent	Position of absent
		director	director	Reason for absence	Name of proxy
		Zhao Rongzhe	Director	Other work commitment	Du Ji'an
1.3		Peng Yi (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.

• For identification purpose only

1

1. BASIC INFORMATION OF THE COMPANY

2.1 Major financial data

			Unit: RMB' 000
			Increase/decrease
			at the end of the
			reporting period
	As at the end of		as compared to
	the reporting	As at the end of	the end of the
	period	the previous year	previous year (%)
Total assets	289,709,012	281,686,377	2.8
Net assets attributable to shareholders
of the listed company	104,900,725	100,857,446	4.0
		From the
		beginning of the
		previous year to
	From the	the end of the	Increase/decrease
	beginning of the	corresponding	compared to the
	year to the end	period of the	corresponding
	of the reporting	previous year	period of the
	period	(Restated)	previous year (%)
Net cash flows generated from
operating activities	5,835,827	4,596,433	27.0
		From the
		beginning of the
		previous year to
	From the	the end of the	Increase/decrease
	beginning of the	corresponding	compared to the
	year to the end	period of the	corresponding
	of the reporting	previous year	period of the
	period	(Restated)	previous year (%)
Operational revenue	44,442,528	27,520,485	61.5
Net profit attributable to shareholders
of the listed company	3,509,206	648,488	441.1
Net profit attributable to shareholders
of the listed company net of
nonrecurring gains or losses	3,478,859	625,328	456.3
Weighted average return on net assets			Increased by 2.75
(%)	3.41	0.66	percentage points
Basic earnings per share (RMB per
share)	0.26	0.05	420.0
Diluted earnings per share (RMB per
share)	0.26	0.05	420.0

2

Non-recurring gains or losses and relevant amounts √ Applicable □ Not applicable

		Unit: RMB' 000
	Amount for the
Items	current period	Explanations
Profit or loss on disposal of non-current assets	3,156	-
Government grants included in profit or loss for the
current period, excluding those closely related to
the Company's ordinary business and granted on an
ongoing basis in fixed amount or volume according
to certain principles under national policies	27,278	-
Gain or loss from external entrusted loans	7,422	-
Other non-operating income and expenses apart from
the foregoing	3,176	-
Gain or Loss on other non-recurring items	293	-
Impact on minority shareholders'
interests (after tax)	-3,314	-
Effect of income tax	-7,664	-
Total	30,347	-

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2.2 Major production and operational data

						Unit: RMB
				January to	January to	Percentage
Items		Unit	March 2021	March 2020	change %
I.	Coal operations
	1. Production volume of commercial coal	10,000 tonnes	2,859	2,556	11.9
	Of which: Thermal coal	10,000 tonnes	2,551	2,285	11.6
		Coking coal	10,000 tonnes	308	271	13.7
	2. Sales volume of commercial coal	10,000 tonnes	7,249	5,060	43.3
	(1)	Sales volume of self produced coal	10,000 tonnes	2,858	2,484	15.1
		Of which: external sales volume	10,000 tonnes	2,694	2,347	14.8
	(2)	Sales volume of proprietary coal
		trading	10,000 tonnes	4,126	2,524	63.5
		Of which: external sales volume	10,000 tonnes	3,857	2,322	66.1
	(3)	Agency sales of coal	10,000 tonnes	265	52	409.6
II.	Coal chemical operations
	(I) Polyolefin
	1.	Polyethylene production volume	10,000 tonnes	20.2	19.3	4.7
		Sales volume	10,000 tonnes	19.5	14.4	35.4
	2.	Polypropylene production volume	10,000 tonnes	19.5	18.6	4.8
		Sales volume	10,000 tonnes	19.1	17.7	7.9
	(II) Urea
	1.	Production volume	10,000 tonnes	53.8	48.9	10.0
	2.	Sales volume	10,000 tonnes	63.7	59.1	7.8
	(III)Methanol
	1.	Production volume	10,000 tonnes	24.2	20.4	18.6
	2.	Sales volume	10,000 tonnes	24.3	20.2	20.3
		Of which: external sales volume	10,000 tonnes	4.5	0.1	4,400.0
III. Coal mining equipment operations
	1. Output value of coal mining equipment	RMB100 million	21.8	21.4	1.9

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2.3 Major 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 listed	shareholders of the listed
		company	company
			January to	As at 31		As at 31
		January to	March 2020	March		December
		March 2021	(Restated)	2021		2021
According to PRC GAAP	3,509,206	648,488	104,900,725		100,857,446
Items and amounts adjusted according to IAS:
(1)	Adjustment to special
	funds and deferred tax of
	the coal industry	521,702	409,851	-15,202		-20,446
(2)	Adjustment to floating
	of non-tradable shares
	under equity split	-	-	-155,259		-155,259
(3)	Adjustment to
	government grants	927	927	-21,333		-22,260
According to IAS	4,031,835	1,059,266	104,708,931		100,659,481

Explanations on major reconciliations are as follows:

1. 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 incurrence, 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 incurrence and the special reserves are accordingly transferred to retained earnings.
2. 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.
3. 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.

5

2.4 Total number of shareholders, top 10 shareholders and top 10 shareholders holding tradable shares (or shareholders not subject to trading moratorium) as at the end of the reporting period

							Unit: Share
Total number of shareholders							135,302
	Particulars of top 10 shareholders
	Number of
	shares
	held as at the		Number of	Shares pledged
	end of the	Shareholding	shares subject	or frozen
Name of shareholders (full name)	reporting	percentage	to trading				Nature of
period	(%)	moratorium	Status		Number	shareholders
China National Coal Group Corporation	7,605,207,608	57.36%	-	Nil		0	State-owned
							legal person
HKSCC NOMINEES LIMITED	3,953,897,457	29.82%	-	Unknown		-	Foreign legal
							person
China Securities Finance Corporation	335,624,355	2.53%	-	Nil		0	State-owned
Limited (中國證券金融股份有限公司)							legal person
China Coal Hong Kong Limited	132,351,000	1.00%	-	Nil		0	Foreign legal
(中煤能源香港有限公司)							person
Central Huijin Asset Management	83,035,400	0.63%	-	Nil		0	State-owned
Company Limited (中央匯金資產管理							legal person
有限責任公司)
Hong Kong Securities Clearing Company	79,122,108	0.60%	-	Nil		0	Foreign legal
Limited							person
Agricultural Bank of China Limited -	46,415,081	0.35%	-	Nil		0	Other
Guangfa Balance Selected Mixed Type
Securities Investment Fund (中國農業
銀行股份有限公司-廣發均衡優選混
合型證券投資基金)
China Construction Bank Corporation -	41,050,601	0.31%	-	Nil		0	Others
Guangfa Value Leading Mixed Type
Securities Investment Fund (中國建設
銀行股份有限公司－廣發價值優勢混
合型證券投資基金)
Xu Kaidong (徐開東)	32,618,710	0.25%	-	Nil		0	Domestic
							natural person
Industrial and Commercial Bank of China	21,937,970	0.17%	-	Nil		0	Others
Limited - Guangfa Value Advantage
Mixed Type Securities Investment Fund
(中國工商銀行股份有限公司－廣發價
值優勢混合型證券投資基金)

6

Particulars of top 10 shareholders not subject to trading moratorium

	Number of listed	Type and number of Shares
	shares held not
	subject to trading
Name of shareholders	moratorium	Type		Number
China National Coal Group Corporation (中國中煤	7,605,207,608	Ordinary shares		7,605,207,608
能源集團有限公司)		denominated in RMB
HKSCC NOMINEES LIMITED	3,953,897,457	Overseas listed foreign		3,953,897,457
		shares
China Securities Finance Corporation Limited (中	335,624,355	Ordinary shares		335,624,355
國證券金融股份有限公司)		denominated in RMB
China Coal Hong Kong Limited (中煤能源香港有	132,351,000	Overseas listed foreign		132,351,000
限公司)		shares
Central Huijin Asset Management Company	83,035,400	Ordinary shares		83,035,400
Limited (中央匯金資產管理有限責任公司)		denominated in RMB
Hong Kong Securities Clearing Company Limited	79,122,108	Ordinary shares		79,122,108
		denominated in RMB
Agricultural Bank of China Limited - Guangfa	46,415,081	Ordinary shares		46,415,081
Balance Selected Mixed Type Securities		denominated in RMB
Investment Fund (中國農業銀行股份有限公司-
廣發均衡優選混合型證券投資基金)
China Construction Bank Corporation - Guangfa	41,050,601	Ordinary shares		41,050,601
Value Leading Mixed Type Securities Investment		denominated in RMB
Fund (中國建設銀行股份有限公司－廣發價值
優勢混合型證券投資基金)
Xu Kaidong (徐開東)	32,618,710	Ordinary shares		32,618,710
		denominated in RMB
Industrial and Commercial Bank of China Limited -	21,937,970	Ordinary shares		21,937,970
Guangfa Value Advantage Mixed Type Securities		denominated in RMB
Investment Fund (中國工商銀行股份有限公司－
廣發價值優勢混合型證券投資基金)
Explanations on affiliated relationship or parties	China Coal Hong Kong Limited (中煤能源香港有限公司) is a
acting in concert among the above-mentioned	wholly-owned subsidiary of China Coal Group (中煤集團), the
shareholders	controlling shareholder of the Company. It is not certain if any of the
	other shareholders are affiliated or acting in concert with each other.
Explanations on preference shareholders with voting	The Company does not have preference shares and has no
rights restored and the number of shares held	preference shareholders with voting rights restored.

Notes: The above tables of particulars of top 10 shareholders and particulars of top 10 shareholders not subject to trading moratorium are based on the followings:

1. The above information was prepared in accordance with the register of shareholders of the Company as at 31 March 2021 provided by the China Securities Depository and Clearing Corporation Limited Shanghai Branch and Computershare Hong Kong Investor Services Limited.
2. The A shares held by Hong Kong Securities Clearing Company Limited are held on behalf of various customers.
3. The H shares held by HKSCC Nominees Limited are held on behalf of various customers.

As at 31 March 2021, according to the disclosure of interests published on the website of HKSE, Funde Sino Life Insurance Co., Ltd. had long positions in 2,012,858,147 H shares of the Company.

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2.5 Total number of holders of preference shares, top 10 holders of preference shares and top 10 holders of preference shares (not subject to trading moratorium) as at the end of the reporting period

□ Applicable √ Not applicable

III. SIGNIFICANT EVENTS

3.1 Significant changes of the major accounting items and financial indicators of the Company and the reasons thereof

√ Applicable □ Not applicable

3.1.1 Analysis on reasons for the major changes in items on the balance sheet

				Unit: RMB' 000
	As at	As at	Increase/
	31 March	31 December	decrease
Items	2021	2020	(%)	Major reasons for the changes
Account	10,016,570	7,241,095	38.3	Mainly due to the increase in account
receivables				receivables during the settlement
				period as a result of the significant
				increase in income due to the
				expansion in sales scale of the
				Company.
Tax payables	2,744,640	1,634,611	67.9	Mainly due to the increase in EIT
				and VAT payables as a result of the
				increase in earnings and expansion
				in sales scale of the Company.

8

3.1.2 Analysis on reasons for the major changes in items on the income statement

				Unit: RMB' 000
		January to
	January to	March
	March	2020	Increase/
Items	2021	(Restated)	decrease (%)	Major reasons for the changes
Operating revenue	44,442,528	27,520,485	61.5	Mainly due to the significant
				increase in sales prices of the
				major products of the Company
				benefited from the stable recovery
				of the macro economy, the year
				-on-year increase in production
				and sales volume as a result of
				strengthening the production
				of coal, coal chemical and coal
				mining equipment products, as well
				as the expansion in sales scale of
				purchased coal by leveraging on its
				strong network channels resulting
				in an increase of operating revenue.
Operating cost	32,861,337	19,606,770	67.6	Mainly due to the increase in
				production and sales volume of the
				major products of the Company, as
				well as the expansion in sales scale
				of purchased coal resulting in an
				increase of operating cost.
Tax expenses and	1,288,758	914,015	41.0	Mainly due to the year-on-year
surcharges				increase in ad valorem resources
				tax as a result of the increase in
				sales volume sales price of the self-
				produced coal of the Company.
Research and	81,433	42,857	90.0	Mainly due to the increase in
development				research and development expenses
expenses				of the Company for enhancing its
				technology and innovation.
Investment gain	828,102	46,460	1,682.4	Mainly due to the year-on-year
				increase in earnings of investee
				companies and the year-on-year
				increase in investment gain
				recognised based on the share
				proportion of the Company in such
				companies.
Income tax	1,370,784	742,139	84.7	Mainly due to the year-on-year
expenses				increase in earnings of the
				Company.

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3.1.3 Analysis on reasons for major changes in items on the cash flow statement

					Unit: RMB' 000
			January to	increase/
		January to	March 2020	decrease in
	Items	March 2021	(Restated)	amount	Major reasons for the changes
	Net cash flows	5,835,827	4,596,433	1,239,394	Mainly due to the combined effect of
	generated from				growth of the operating results of the
	operating activities				Company as well as the increase of
					the deposits derived from members
					other than China Coal Energy by the
					Finance Company.
	Net cash flows	-2,881,831	3,130,981	-6,012,812	Mainly due to the combined effects of
	generated from				the change in time deposits of the
	investment				Company with initial deposit period
	activities				of more than three months as well
					as the self-operated loan to members
					other than China Coal Energy by the
					Finance Company on a year-on-year
					basis, resulting in an increase in cash
					outflow.
	Net cash flows	428,636	4,493,473	-4,064,837	Mainly due to the year-on-year decrease
	generated from				in debt financing arranged by the
	financing activities				Company according to the annual
					financing plan and the overall capital.
3.1.4 Revenue, cost and gross profit of coal operations

In the first quarter of 2021, the macro economy has steadily recovered. The selling price of the self-produced commercial coal of the Company increased significantly. The Company endeavoured to increase production and sales to guarantee supply, and the scale of coal production and sales were expanded. The production volume of self-produced commercial coal was 28.59 million tonnes, representing a year-on-year increase of 3.03 million tonnes or 11.9%; the sales volume of self-produced commercial coal was 28.58 million tonnes, representing a year-on-year increase of 3.74 million tonnes or 15.1%; the sales volume of proprietary coal trading was 41.26 million tonnes, representing a year-on-year increase of

16.02 million tonnes or 63.5%. The Company recorded a sales revenue from coal operations of RMB36.678 billion, representing an increase of RMB14.780 billion or 67.5%, as compared to RMB21.898 billion for the same period of last year, of which, the sales revenue from self- produced commercial coal was RMB14.590 billion, representing an increase of RMB2.918 billion or 25.0%, as compared to RMB11.672 billion for the same period of last year; the sales revenue from proprietary coal trading was RMB22.083 billion, representing an increase of RMB11.860 billion or 116.0%, as compared to RMB10.223 billion for the same period of last year.

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The cost of sales of coal operations was RMB27.406 billion, representing an increase of RMB12.125 billion or 79.3%, as compared to RMB15.281 billion for the same period of last year, of which, the cost of sales of self-produced commercial coal increased by RMB799 million year on year, due to the combined effects of the Company's enhancement of cost control leading to the year-on-year decrease of the unit cost of sales of self-produced commercial coal by RMB0.27/tonne, and the year-on-year increase of its sales volume by 3.74 million tonnes; and the cost of sales of proprietary coal increased on a year-on-year basis by RMB11.326 billion due to the year-on-year increase of the sales volume of proprietary coal by 16.02 million tonnes.

The gross profit of coal operations was RMB9.272 billion, representing an increase of RMB2.655 billion or 40.1%, as compared to RMB6.617 billion for the same period of last year, of which, self-produced commercial coal recorded a gross profit of RMB8.427 billion, representing an increase of RMB2.119 billion as compared to RMB6.308 billion for the same period of last year; proprietary coal trading recorded a gross profit of RMB840 million, representing an increase of RMB534 million as compared to RMB306 million for the same period of last year.

3.1.5 Coal sales volume and selling prices before netting of inter-segmental sales and the year- on-year changes

											Currency: RMB
											Year-on-year
									Increase/decrease in	Increase/decrease in
					January to March 2021	January to March 2020	amount		percentage
					Sales	Selling	Sales	Selling	Sales		Selling
					volume	price	volume	price	volume		price
					(10,000	(RMB/	(10,000	(RMB/	(10,000		(RMB/	Sales	Selling
					tonnes)	tonne)	tonnes)	tonne)	tonnes)		tonne)	volume(%)	price(%)
I.	Self-produced	Total			2,858	511	2,484	470	374		41	15.1	8.7
	commercial coal
	(I)	Thermal coal	2,539	459	2,209	421	330		38	14.9	9.0
			1.	Domestic sale	2,539	459	2,209	421	330		38	14.9	9.0
		(II)	Coking coal	319	919	275	858	44		61	16.0	7.1
			1.	Domestic sale	319	919	275	858	44		61	16.0	7.1
II.	Proprietary coal	Total			4,126	535	2,524	405	1,602		130	63.5	32.1
	trading
	(I)	Domestic resale	4,064	536	2,494	401	1,570		135	63.0	33.7
		(II)	Self-operated exports*	6	1,206	2	1,866	4		-660	200.0	-35.4
		(III)	Import trading	56	402	28	668	28		-266	100.0	-39.8
III.	Import and export and	Total			265	2	52	6	213		-4	409.6	-66.7
	domestic agency★
	(I)	Import agency	256	2	15	4	241		-2	1,606.7	-50.0
		(II)	Export agency	9	8	37	7	-28		1	-75.7	14.3
*：	Briquette export.

★： Selling price is agency service fee.

Note: Sales volume of the commercial coal is before net of inter-segmental sales within the Company which was 4.33 million tonnes for January to March 2021 and 3.39 million tonnes for January to March 2020.

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3.1.6 The unit cost of sales of self-produced commercial coal and the year-on-year changes Unit: RMB/tonne Currency: RMB

			Year-on-year
				Increase/
			Increase/	decrease in
	January to	January to	decrease in	percentage
Items	March 2021	March 2020	amount	(%)
Materials costs	50.97	51.50	-0.53	-1.0
Staff costs	28.94	31.95	-3.01	-9.4
Depreciation and
amortization	52.54	55.63	-3.09	-5.6
Repair expenses	10.55	9.74	0.81	8.3
Outsourced mining
engineering fee	36.58	33.04	3.54	10.7
Other costs	36.07	34.06	2.01	5.9
Unit cost of sales of self-
produced commercial coal	215.65	215.92	-0.27	-0.1

In the first quarter of 2021, the unit cost of sales of self-produced commercial coal of the Company was RMB215.65/tonne, representing a decrease of RMB0.27/tonne or 0.1%, as compared to RMB215.92/tonne for the same period of last year. The Company continued to release its advanced production capacity activating the increase of the output of self-produced commercial coal, the dilution effect of which reduced the staff costs and depreciation and amortization costs per tonne of coal on a year-on-year basis. According to the production organization plan, the stripping volume of the Company's open pit mine and the drifting footage of the mine for the current period increased on a year-on-year basis, which resulted in the increase both in outsourced mining engineering fee per tonne of coal and repair expenses per tonne of coal. Besides, affected by the combined effect of the year-on-year decrease in utilization of the special fund provided by the Company in the current period as well as unbalanced settlement of sporadic expenses related to production, other costs per tonne of coal increased on a year-on-year basis.

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3.1.7 Sales volume and price of major coal chemical products and the year-on-year changes Currency: RMB

									Year-on-year
							Increase/decrease in	Increase/decrease in
			January to March 2021	January to March 2020	amount		percentage (%)
			Sales	Selling	Sales	Selling	Sales		Selling
			volume	price	volume	price	volume		price
			(10,000	(RMB/	(10,000	(RMB/	(10,000		(RMB/	Sales	Selling
			tonnes)	tonne)	tonnes)	tonne)	tonnes)		tonne)	volume(%)	price(%)
(I)	Polyolefin	38.6	7,444	32.1	6,052	6.5		1,392	20.2	23.0
	1.	Polyethylene	19.5	7,321	14.4	6,000	5.1		1,321	35.4	22.0
	2.	Polypropylene	19.1	7,569	17.7	6,095	1.4		1,474	7.9	24.2
(II)	Urea	63.7	1,927	59.1	1,692	4.6		235	7.8	13.9
(III)	Methanol	24.3	1,598	20.2	1,394	4.1		204	20.3	14.6
Of which: Inter-segment
		self-consumption volume◆	19.8	1,649	20.1	1,393	-0.3		256	-1.5	18.4
		External sales	4.5	1,375	0.1	1,681	4.4		-306	4,400.0	-18.2

◆： The amount of inter-segmentself-consumption volume represents the supply of methanol by Inner Mongolia China Coal Yuanxing Energy Chemical Company Limited (內蒙古中煤遠興能源化工有限公

司) and China Coal Shaanxi Yulin Energy & Chemical Company Limited (中煤陝西榆林能源化工有限 公司) to Inner Mongolia China Coal Mengda New Energy & Chemical Company Limited (內蒙古中煤蒙 大新能源化工有限公司) and China Coal Ordos Energy Chemical Company Limited (中煤鄂爾多斯能源 化工有限公司).

3.1.8 Unit cost of sales of major coal chemical products and year-on-year changes

Unit: RMB/tonne Currency: RMB

					Year-on-year
						Increase/
					Increase/	decrease in
			January to	January to	decrease in	percentage
Items		March 2021	March 2020	amount	(%)
(I)	Polyolefin	5,477	4,928	549	11.1
	1.	Polyethylene	5,505	4,985	520	10.4
	2.	Polypropylene	5,448	4,881	567	11.6
(II)	Urea	1,080	1,105	-25	-2.3
(III) Methanol▲	1,268	1,250	18	1.4

▲： The unit cost of sales of methanol includes the corresponding unit cost of sales of inter-segmental self- consumption volume.

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1. Analysis and explanation on the progress of significant events and their impacts and solutions
2. • applicable √ Not applicable
3. Undertakings not yet fully performed during the reporting period
4. • applicable √ Not applicable
5. Warning in respect of possible loss or any significant changes in aggregate net profit from beginning of the year until the end of the next reporting period as compared with that of the corresponding period of the previous year and the reasons thereof

• applicable □Not applicable

Since 2021, the macro economy has steadily recovered. The selling price of the main products of the Company increased significantly, and with the combined effect of the expansion of production and sale of main products, continuous strengthened cost control by the Company as well as the year-on-year increase of investment income from investee companies , it is expected that there will be a substantial growth in accumulated net profit from the beginning of this year to the end of the next reporting period as compared with that of the corresponding period of the previous year.

By Order of the Board

China Coal Energy Company Limited

Peng Yi

Vice Chairman and Executive Director

Beijing, the PRC

22 April 2021

As at the date of this announcement, the executive director of the Company is Peng Yi; the non-executive directors of the Company are Du Ji ' an, Zhao Rongzhe and Xu Qian; and the independent non-executive directors of the Company are Zhang Ke, Zhang Chengjie, and Leung Chong Shun.

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