Yankuang Energy: 2021 ANNUAL REPORT

Important Notice

The board of directors, the supervisory committee and the directors, supervisors and senior management of the company guarantee the authenticity, accuracy and completeness of the information contained in the annual report and there is no false statements, misleading statements contained in the annual report or material omissions in the annual report for which they assume joint and several liability.

The 2021 annual report of Yankuang Energy Group Company Limited was approved by the 21st meeting of the eighth session of the Board. All 11 quorum directors attended the meeting.

SHINEWING (HK) CPA Limited has issued the standard independent auditor’s report with an unqualified opinion for the company.

Mr. Li Wei, Chairman of the Board of Directors, Mr. Zhao Qingchun, Chief Financial Officer, and Mr. Zhao Zhiguo, Head of Financial Management Department, hereby warrant the authenticity, accuracy and completeness of the statements financial statements contained in this annual report.

The company’s board of directors has proposed to distribute a cash dividend of RMB 2.00 per share (including tax) for the year 2021 based on the number of shares on the record date of the distribution of the dividend and shares.

The forward-looking statements contained in this annual report regarding the future plans of the Company do not constitute any substantial commitment to investors and investors are advised of the risks of investing.

There has been no appropriation of Company funds by the Controlling Shareholder or its related parties for non-operating activities.

No guarantees have been granted to third parties by the Company without following the prescribed decision-making procedures.

There is no situation in which the majority of directors cannot guarantee the authenticity, accuracy and completeness of the information contained in the annual report.

The Company has disclosed the main risks facing the Group, influences and countermeasures in this annual report. For more details, please refer to the corresponding content of “Chapter 4 Report of the Board of Directors”, to which investors are requested to pay attention.

Content

Chapter 1

DEFINITIONS 2

Chapter 2

COMPANY INFORMATION AND KEY FINANCIAL INDICATORS 6

chapter 3

CHAIRMAN’S STATEMENT 11

Chapter 4

REPORT OF THE BOARD OF DIRECTORS 15

Chapter 5

CORPORATE GOVERNANCE 48

Chapter 6

ENVIRONMENT & SOCIAL RESPONSIBILITIES 115

Chapter 7

SIGNIFICANT EVENTS 128

Chapter 8

CHANGES IN SHARES AND SHAREHOLDERS 167

Chapter 9

CORPORATE BONDS 178

Chapter 10

INDEPENDENT AUDITOR’S REPORT 188

Chapter 11

CONSOLIDATED ACCOUNTS 193

Chapter 12

DOCUMENTS AVAILABLE FOR INSPECTION 348

Financial statements with signatures and seals of the president, chief financial officer and chief financial officer of the company.

The original copy of the audit report with the seal of the accounting firm and the signature and seal of the CPA.

All original copies of documents and announcements disclosed on websites designated by the China Securities Regulatory Commission during the reporting period.

Annual report published on other securities markets.

Chapter 01

Definitions

In this annual report, unless the context requires otherwise, the following terms have the following meanings:

“Yankuang Energy”, “Company”

or “the Company”

Yankuang Energy Group Company Limited (formerly “Yanzhou Coal Mining Company Limited”, registered a name change to “Yankuang Energy Group Company Limited” in December 2021), a public limited company incorporated under the laws of the PRC in 1997 and the H whose Shares and A-Shares are listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, respectively;

“Group” or “the Group”

The Company and its subsidiaries;

“Shandong Energy” or “the

controlling shareholder”

Shandong Energy Co., Ltd. (formerly Yankuang Group Co., LTD.), a limited liability company reformed and established under the laws of the PRC in 1996, and renamed Shandong Energy Co., Ltd. in April 2021, being the majority shareholder of the Company directly and indirectly holding 55.76% of the total share capital of the Company at the end of the reporting period;

“Heze Neng Hua”

Yanmei Heze Neng Hua Company Limited, a limited liability company incorporated under the laws of the PRC in 2004 and a 98.33% owned subsidiary of the Company at the end of the reporting period, which is principally engaged in the development and Coal Resources and Electric Power Enterprise in Juye Coalfield, Heze City, Shandong Province;

“Yulin Neng Hua”

Yanzhou Coal Shanxi Neng Hua Company Limited, a limited liability company incorporated under the laws of the PRC in 2002 and a wholly owned subsidiary of the Company, which is principally engaged in the management of projects invested in Shanxi Province by the Company ;

Yanzhou Coal Yulin Neng Hua Company Limited, a limited liability company incorporated under the laws of the PRC in 2004 and a wholly owned subsidiary of the Company, which is principally engaged in the production and operation of coal chemical projects in Shaanxi Province;

Yanzhou Coal Ordos Neng Hua Company Limited, a limited liability company incorporated under the laws of the PRC in 2009 and a wholly owned subsidiary of the Company, which is principally engaged in the development and exploitation of coal resources and Coal Chemical Projects of Inner Mongolia Autonomous Region Enterprise;

Autonomous Region of Mongolia;

Inner Mongolia Haosheng Coal Mining Company Limited, a limited liability company incorporated under the laws of the PRC in 2010 and a 59.38% owned subsidiary of the Company at the end of the reporting period, which is principally engaged in the production and operation of Shilawusu Coal Mine in Ordos, Inner

Yankuang Energy Group Company Limited

DefinitionsChapter 01

“The Mining of Inner Mongolia”

Inner Mongolia Mining (Group) Co., Ltd., a limited liability company incorporated under the laws of the PRC in 2013 and a 51%-owned subsidiary of the Company as of the end of the reporting period, which is primarily engaged in the investment and management of mineral resources, mining and preparation of coal, sale of mineral products, import and export trade and other activities;

“The energy of the future”

Future Energy Chemicals Co. Ltd., a limited liability company incorporated under the laws of the PRC in September 2011 and a 73.97% owned subsidiary of the Company at the end of the reporting period, which is principally engaged in R&D, production and sales of industrial chemicals, coal mining and sales, etc. ;

Lunan Chemicals

Yankuang Lunan Chemicals Co., Ltd., a limited liability company incorporated under the laws of the PRC in 2007 and a wholly owned subsidiary of the Company, which is principally engaged in the development, production and sale of chemicals , etc. ;

“Donghua Heavy Industry”

Yankuang Donghua Heavy Industry Company Limited, a limited liability company incorporated under the laws of the PRC in 2013 and a wholly owned subsidiary of the Company, which is principally engaged in the design, manufacture, installation, repair and maintenance of mining equipment, electromechanical equipment and parts;

“Zhongyin Financial Leasing”

Yankuang Group Finance Co., Ltd., a limited liability company incorporated under the laws of the PRC in September 2010 and a 95% owned subsidiary of the Company at the end of the reporting period;

Yancoal International Resources Development Company Limited, a limited liability company incorporated under the laws of Hong Kong in 2011 and a wholly owned subsidiary of Yancoal International;

Zhongyin Financial Leasing Company Limited, a limited liability company incorporated under the laws of the PRC in 2014 and a wholly owned subsidiary of the Company, which is principally engaged in financial leasing, leasing, consulting and commercial guarantees in terms of leasing, commercial factoring related to its main activity, etc. ;

Yancoal Australia Limited, a limited liability company incorporated under the laws of Australia in 2004 and a 62.26% owned subsidiary of the Company at the end of the reporting period, whose shares trade respectively on the Australian Securities Exchange and HKEX;

Yancoal International (Holding) Company Limited, a limited liability company incorporated under the laws of Hong Kong in 2011 and a wholly owned subsidiary of the Company;

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