China Coal Energy : ANNOUNCEMENT OF ANNUAL RESULTS

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ʕ਷ʕ๩ঐ๕ٰ΅Ϟࠢʮ̡

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

(Stock code: 01898)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIAL HIGHLIGHTS:

• • In 2018, the Group's revenue amounted to RMB104.140 billion, representing an increase of RMB22.627 billion or 27.8% as compared with 2017.

• • In 2018, the profit attributable to the equity holders of the Company amounted to RMB4.488 billion, representing an increase of RMB1.121 billion as compared with 2017.

• • In 2018, the basic earnings per share of the Company was RMB0.34, representing an increase of RMB0.09 as compared with 2017.

• • In 2018, EBITDA amounted to RMB19.401 billion, representing an increase of RMB3.180 billion or 19.6% as compared with 2017.

• • The Board recommended the payment of final dividends of RMB0.078 per share (inclusive of tax) for the year 2018, which is subject to the approval by the Shareholders at the annual general meeting to be held in 2019.

The Board of China Coal Energy Company Limited is pleased to announce the audited annual results of the Group for the year ended 31 December 2018 prepared by the Group in accordance with the International Financial Reporting Standards ("IFRS"):

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2018

Year ended	Year ended
31 December	31 December
2018	2017
Notes	RMB'000	RMB'000
(Restated)
Revenue	6	104,140,066	81,512,560
Cost of sales
Materials used and goods traded	(53,878,707)	(36,183,846)
Staff costs	(4,541,755)	(4,201,953)
Depreciation and amortisation	(6,939,583)	(6,216,039)
Repairs and maintenance	(1,529,732)	(1,691,900)
Transportation costs and port expenses	(9,991,572)	(9,390,416)
Sales taxes and surcharges	(2,834,494)	(2,266,853)
Others	(6,167,158)	(5,955,236)
Cost of sales	(85,883,001)	(65,906,243)
Gross profit	18,257,065	15,606,317
Selling expenses	(679,078)	(626,700)
General and administrative expenses	(4,679,783)	(4,100,447)
Other income	4,810	79,537
Other gains and losses	(915,043)	(1,410,932)
Impairment losses, net of reversal	(136,397)	(251,696)
Profit from operations	11,851,574	9,296,079
Finance income	7	702,878	566,967
Finance costs	7	(4,355,616)	(3,910,531)
Share of profits of associates and joint ventures	1,808,651	1,122,493
Profit before income tax	10,007,487	7,075,008
Income tax expense	8	(2,534,776)	(1,656,129)
Profit for the year	7,472,711	5,418,879
Other comprehensive (expense) income:
Item that will not be reclassified to profit or loss
Fair value changes on equity instruments at fair value
through other comprehensive income, net of tax	(172,595)	-
Items that may be reclassified subsequently to
profit or loss
Fair value changes on debt instruments at fair value
through other comprehensive income, net of tax	20,989	-
Fair value changes on available-for-sale financial assets,
net of tax	-	1,065
Exchange differences arising on translation of
foreign operations	(18,138)	5,011
Other comprehensive (expense) income for the year,
net of tax	(169,744)	6,076
Total comprehensive income for the year	7,302,967	5,424,955

Year ended 31 December 2018

Note

RMB'000

Year ended 31 December 2017

RMB'000 (Restated)

Profit for the year attributable to:

• Equity holders of the Company 4,488,337 3,367,239

• Non-controlling interests 2,984,374 2,051,640

  Total comprehensive income for the year attributable to:

• 7,472,711 5,418,879

• Equity holders of the Company 4,321,018 3,373,315

• Non-controlling interests 2,981,949 2,051,640

  Basic and diluted earnings per share for the profit attributable to equity holders of the Company (RMB)

• 7,302,967 5,424,955

10

0.34

0.25

CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2018

As at 31 December 2018

2017

Notes	RMB'000	RMB'000
(Restated)
Non-current assets
Property, plant and equipment	131,907,922	130,501,423
Investment properties	83,458	85,715
Mining rights	35,552,718	32,784,227
Intangible assets	1,689,402	1,705,868
Land use rights	5,320,455	5,019,707
Goodwill	6,084	6,084
Investments in associates	16,860,313	16,376,591
Investments in joint ventures	2,966,392	2,626,321
Equity instruments at fair value
through other comprehensive income	4,563,851	-
Available-for-sale financial assets	-	3,491,691
Deferred income tax assets	2,838,271	2,783,767
Long-term receivables	560,950	462,139
Other non-current assets	6,772,189	6,569,587
209,122,005	202,413,120
Current assets
Inventories	8,252,752	7,662,087
Trade receivables	11	4,881,389	6,799,874
Notes receivables	11	-	9,038,690
Debt instruments at fair value through other
comprehensive income	11	9,989,407	-
Contract assets	1,014,869	-
Prepayments and other receivables	7,445,110	7,266,042
Restricted bank deposits	3,351,932	2,469,442
Term deposits with initial terms of over three months	12,155,112	6,174,311
Cash and cash equivalents	8,353,662	10,176,683
55,444,233	49,587,129
TOTAL ASSETS	264,566,238	252,000,249
Current liabilities
Trade and notes payables	12	23,252,942	22,912,526
Contract liabilities	2,478,903	-
Accruals, advances and other payables	18,072,853	15,638,172
Taxes payable	1,156,547	1,101,196
Short-term bonds	-	3,000,000
Short-term borrowings	6,307,547	7,596,033
Current portion of long-term borrowings	11,845,531	13,872,506
Current portion of long-term bonds	5,979,779	-
Current portion of provision for close down,
restoration and environmental costs	13,310	18,950
69,107,412	64,139,383

As at 31 December 2018

2017

Note	RMB'000	RMB'000
(Restated)
Non-current liabilities
Long-term borrowings	45,317,056	44,634,977
Long-term bonds	27,911,367	26,866,347
Deferred income tax liabilities	5,929,183	5,988,603
Provision	45,713	-
Provision for employee benefits	120,480	78,718
Provision for close down, restoration and
environmental costs	1,450,265	1,346,848
Deferred revenue	1,666,924	1,698,928
Other long-term liabilities	2,483,541	824,011
84,924,529	81,438,432
Total liabilities	154,031,941	145,577,815
Equity
Share capital	13,258,663	13,258,663
Reserves	13	46,303,712	45,437,624
Retained earnings	13	32,423,108	30,605,307
Equity attributable to equity holders of the Company	91,985,483	89,301,594
Non-controlling interests	18,548,814	17,120,840
Total equity	110,534,297	106,422,434
TOTAL EQUITY AND LIABILITIES	264,566,238	252,000,249