CStone Pharmaceuticals — Interim / Quarterly Report 2002

Oct 29, 2002

Yanzhou Coal Mining Company Limited

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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兗州煤業股份有限公司 YANZHOU COAL MINING COMPANY LIMITED

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

First Three Quarters Report for the Year 2002

IMPORTANT

This announcement is made pursuant to the disclosure requirement under Paragraph 2(2) of the Listing Agreement.

The Board of Directors of the Company confirms that this report does not contain any false information, misleading statements or material omissions and accepts joint and several responsibilities for the truthfulness, accuracy and completeness of the content. These financial statements of the first three quarters report have not been audited.

The unaudited First Three Quarters Report ended on 30th September, 2002 (“First Three Quarters Report”).

• This First Three Quarters Report is prepared in accordance with the regulations on Disclosure of Information in Quarterly Reports for Listed Companies by the China Securities Regulatory Commission and Shanghai Stock Exchange.

• All financial information contained in this First Three Quarters Report is prepared in accordance with the PRC Generally Accepted Accounting Principles (“PRC GAAP”). The Company has also provided coal sales price calculated in accordance with the basis reflected in its previous annual reports and interim reports as announced in Hong Kong. Please refer to the section headed “Coal sales prices calculated in accordance with the basis reflected in its previous annual reports and interim reports as announced in Hong Kong” for details. Shareholders of the Company and public investors should be aware of investment risks when trading shares in the Company.

• During the first three quarters of 2002, revenue from principal operations was RMB5,943.135 million, representing an increase of RMB1,122.18 million or 23.3% over the same period last year. Realized net profit was RMB842.6 million, representing an increase of RMB265.632 million or 46.0% over the same period last year.

• Unless otherwise specified, the currency in this First Three Quarters Report shall be denominated in RMB.

• The information in this report is the same as that published by the Shanghai Stock Exchange and this report is published simultaneously in the PRC and Hong Kong.

Yanzhou Coal Mining Company Limited 30 October 2002 1

Yanzhou Coal Mining Company Limited

I. GENERAL INFORMATION OF THE COMPANY

1. Corporate Information

(1) Places of listing, stock code and ticker symbol A Shares: The Shanghai Stock Exchange Ticker Symbol: 600188 Stock Abbreviation: Yanzhou Mei Ye H Shares: The Stock Exchange of Hong Kong Limited Share Code: 1171 ADRs: The New York Stock Exchange, Inc. Ticker Symbol: YZC

(2) Company Secretary: Chen Guangshui Contact Address: 40 Fushan Road Zoucheng Shandong Province, PRC Office of the Secretary of the Board of Directors Tel: (86-537)-5382319 Fax: (86-537)-5383311 E-mail: yzc@yanzhoucoal.com.cn

2. Principal Financial Data and Index

Principal Financial Data and Index
		January-September
Item	Unit	in 2002
		Unaudited
Net Profit	RMB’000	842,600
Net Profit after deduction of
extraordinary gain and loss	RMB’000	850,386
Return on net assets	%	8.65
Earnings per share	RMB/share	0.29

Note: The extraordinary gain and loss deducted include: non-operating income of RMB2.204 million, non-operating expenses of RMB12.441 million, and impact on income tax RMB2.452 million.

Item	Unit	30th September,2002	31st December,2001
		(unaudited)	(audited)
Shareholder’s equity	RMB’000	9,738,628	8,723,328
Net asset value per share	RMB/share	3.39	3.04
Net asset value per share
after adjustment	RMB/share	3.34	3.00

II. CHANGES IN SHARE CAPITAL AND SHAREHOLDING OF MAJOR SHAREHOLDERS

1. Changes in Share Capital

For the period under review, there was no change in the total number of shares and the share structure of the Company compared with the beginning of the year.

2. Information of Major Shareholders

• (1) Total number of shareholders at the end of the period under review:

The company has 69,843 shareholders as at 30th September, 2002.

Yanzhou Coal Mining Company Limited 30 October 2002 2

Yanzhou Coal Mining Company Limited

• (2) Shareholding of Top Ten Shareholders:

Shareholding of Top Ten Shareholders:
		Number of
	Class of	Shares held at	Percentage
Shareholder’s name	Shares held	end of this period	Holding (%)
Yankuang Group Corporation Limited	State legal	1,670,000,000	58.19
	person shares
HKSCC Nominees Limited	H shares	1,017,292,000	35.45
Haitong Securities	A shares	4,563,650	0.16
Fenghe Value	A shares	2,756,116	0.10
Jingfu Fund	A shares	2,330,432	0.08
Shanghai National Investment	A shares	2,228,000	0.08
Dongfeng Automobile Co., Ltd.	A shares	1,779,748	0.06
Puhui Fund	A shares	1,402,042	0.05
Sichuan Changhong Electric Co., Ltd.	A shares	1,212,200	0.04
Kerui Fund	A shares	1,102,574	0.04

Yankuang Group Corporation Limited (the “Parent Company”) held the shares on behalf of the State. None of the shares held by the Parent Company were pledged or restricted during the period under review.

As the clearing and settlement agent for the Company’s H Shares, HKSCC Nominees Limited acts as an agent in holding the Company’s H Shares.

The Company was not aware of connected relations among its top ten shareholders.

The following shareholders became the top ten shareholders of the Company through subscription of the newly issued A shares:

the newly issued A shares:
	Agreed period of holding the shares
Shareholder’s name	Beginning date	Ending date
Dongfeng Automobile Co., Ltd.	3rd January,2001	20th May,2001
Sichuan Changhong Electric Co., Ltd.	3rd January,2001	20th May,2001

III. DISCUSSION AND ANALYSIS OF BUSINESS OPERATION

1. Business Operation

• (1) The Company was principally engaged in underground mining, preparation and sales of coal as well as railway transportation of coal.

• (2) From January to September of 2002, the Company significantly improved its performance through continued implementation of its operating strategy by increasing the production and sales of coal as well as enlarging the export volume of coal. For the first three quarters ended September 2002, income derived from its principal activities was RMB5, 943.135 million, among which coal sales income accounted for 5,839.802 million, representing an increase of RMB1,018.847 million or 21.1% over the same period last year. External transportation income derived from the newly acquired railway assets specially for coal transportation (the “Railway Assets”) was RMB103.333 million.

Cost of the Company’s principal operations was RMB2,584.131 million , among which the external transportation cost of the Railway Assets was RMB36.012 million. Without taking into account of the effects of the acquisition of the Railway Assets, cost of the Company’s principal operations was RMB2,548.119 million, representing an increase of RMB297.650 million or 13.2% over the same period last year. Such increase was mainly due to a significant increase in the sales of coal. The unit cost of goods sold of the Company increased by RMB2.72 per tonne, or 2.8%, to RMB98.53 per tonne in the first three quarters of 2002 compared with the same period of 2001. This was principally due to an increase in the sales of the proportion of washed clean coal.

Profit realized from principal activities was RMB3,289.67 million, representing a growth of RMB777.783 million or 31.0% over the same period last year.

Net profit realized was RMB842.6 million, representing a growth of RMB265.632 million or 46.0% over the same period last year.

During the period under review, the Company’s raw coal production was 28.783 million tonnes, representing an increase of 3.191 million tonnes or 12.5% over the same period last year. Production of salable coal was 27.013 million tonnes, representing an increase of 2.827 million tonnes or 11.7% over the same period last year.

Yanzhou Coal Mining Company Limited 30 October 2002

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Yanzhou Coal Mining Company Limited

During the period under review, coal sales was 25.862 million tonnes, representing an increase of 2.373 million tonnes or 10.1% as compared with the same period last year. Out of this, domestic sales was 14.99 million tonnes, representing an increase of 822 thousand tonnes or 5.8% and export sales was 10.872 million tonnes, representing an increase of 1.551 million tonnes or 16.6% as compared with the same period last year.

The Company’s average coal sales price for the year was RMB225.80/ton, representing an increase of RMB20.58/ton or 10.0%, as compared with the same period last year, or an increase of RMB17.35/ton or 8.3%, as compared with the average coal sales price in 2001. Out of this, the average coal price of domestic sales increased by 14.0%, while that of export coal sales increased by 2.2%.

• (3) Coal sales prices calculated in accordance with the basis reflected in its previous annual reports and interim reports as announced in Hong Kong (The prices represent the invoice prices for sale of coal of the Company minus sales taxes, transportation cost from the Company to the ports, port charges and miscellaneous fees.)

miscellaneous fees.)
				Unit: RMB/ton
		Average coal
	Average	price from
	coal price	Jan. to Sep.
	from Jan. to	excluding effects
	Sep.(taking into	of Railway	Average coal
	account the	Asset (on the	price in the
	effects of the	same basis	same period	Average coal
	Railway Asset)	as last year)	last year	price in 2001
Average sales price	177.52	170.14	154.45	157.11
Export sales including:	193.66	180.16	178.70	179.71
Domestic sales	165.81	162.87	138.50	141.53

As calculated in accordance with the basis reflected in its previous annual reports and interim reports announced in Hong Kong, the average coal sales price in the first three quarters, without taking into account of the effects of the Railway Assets acquisition, was RMB170.14/ton, representing an increase of RMB15.69/ton or 10.2% over the same period last year. Among which, the average export sales price was RMB180.16/ton, representing an increase of RMB1.46/ton or 0.8% over the same period last year; and the average domestic sales price was RMB162.87/ton, representing an increase of RMB 24.37/ton or 17.6% over the same period last year. When compared with the average sales price in 2001, there was an increase of RMB13.03/ton or 8.3%.

• (4) Analysis of the Operating Performance of the Railway Assets.

The Company acquired the Railway Assets from the Parent Company at the beginning of 2002. To reflect the contributions of the acquired Railway Assets, the operating results of the Railway Assets from January to September of 2002 was presented separately as an independent operation division.

Prior to the acquisition of the Railway Assets, for coal products sold to customers from the ports and transported by the Railway Assets, the Company settled the accounts with the customers at FOB prices. The Company bore the transportation expenses incurred on the Railway Assets and made payments to the Parent Company. Such expenses were calculated as operating cost of the Company on a State recognized price basis. For coal products transported directly to the customers by trains, the Company settled the accounts with the customers at ex-mine prices. The customers bore the transportation expenses incurred on the Railway Assets and made payments to the Parent Company through the Company.

After the Railway Assets acquisition, the Company bears transportation expenses incurred on Railway Assets for coal products sold on FOB terms. When accounting for the Railway Assets as an independent operating division, this transportation is treated as internal transportation. The transportation charges were calculated as the Railway Assets’ income from internal transportation, which offset against the operating cost of the Company when consolidating the statements. The cost of such transportation was included in the internal transportation cost of the Railway Assets before the consolidation of the statements, and included in the operating cost of the Company when consolidating the statements. For the settlement of the coal products sold on ex-mine terms, the customers bear the transportation expenses incurred on the Railway Assets. Transportation through the Railway Assets is treated as external transportation and the transportation income derived is included in the operating income of the Company. Cost of such transportation was included as the principal operating cost of the Company.

Yanzhou Coal Mining Company Limited 30 October 2002

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Yanzhou Coal Mining Company Limited

Main operation figures of the Railway Assets as an independent operation division are as follows:

Items	Items		January to September, 2002
1.	Income from Railway Transportation (RMB’000)		395,821
	Transportation Volume (tonne)		19,996,564
	Freight	charges (RMB/tonne)	19.79
	Including:	(i) Income from External Transportation (RMB’000)	103,333
		Transportation Volume (tonne)	6,039,321
		Freight charges (RMB/tonne)	17.11
		(ii) Income from Internal Transportation (RMB’000)	292,488
		Transportation Volume (tonne)	13,957,243
		Freight charges (RMB/tonne)	20.96
2.	Cost of Railway Transportation (RMB’000)		137,722
	Including:	Cost of External Transportation (RMB’000)	36,012
		Cost of Internal Transportation (RMB’000)	101,710
3.	Contribution to the Net Income of the Company (RMB’000)		101,962

2. Brief analysis of operating performance and financial status

• (1) Income and profit from principal activities and net profit

Item	Amount	(thousand)	Increase/ decrease
	Jan-Sep, 2002	Jan-Sep, 2001	(+/-)%
Income from principal activities	5,943,135	4,820,955	23.28
Profit from principal activities	3,289,670	2,511,887	30.96
Net profit	842,600	576,968	46.04

The realized income from principal activities from January to September of 2002 was RMB5,943.135 million, representing an increase of RMB1,122.18 million or 23.3% over the same period last year. The increase was mainly attributable to the increase in coal price and sales volume, which separately increased revenue from principal activities of RMB532.245 million and RMB486.602 million, respectively; and the newly acquired Railway Asset, which contributed an external transportation income of RMB103.333 million.

The realized profit from principal activities in the first three quarters of 2002 was RMB3,289.67 million, representing an increase of RMB777.783 million or 31.0% over the same period last year. The net profit realized is RMB842.6 million, representing an increase of RMB265.632 million or 46.0% over the same period last year. The increase was mainly attributable to the increase in principal activities income.

• (2) Percentage of revenue and expenses in relation to gross profit

	Amount (thousand)	Amount (thousand)	% in relation to	% in relation to	profit
					Increase/
	Jan-Sep,	Jan-June,	Jan-Sep,	Jan-June,	decrease
Item	2002	2002	2002	2002	(+/-)%
Profit from principal activities	3,289,670	2,157,266	259.24	246.37	5.22
Profit from other activities	24,599	19,257	1.94	2.20	–11.82
Expenses during the period	2,037,084	1,298,142	160.53	148.25	8.28
Subsidy	2,035	0	0.16	0.00	100.00
Net non-operating income/expenses	–10,237	–2,746	–0.81	–0.31	–
Gross profit	1,268,984	875,635	100.00	100.00	0.00
There was no significant change in the percentage of revenue and			expenses in relation to		gross profit
during the period under review when compared with the period previously reported.

Yanzhou Coal Mining Company Limited 30 October 2002 5

Yanzhou Coal Mining Company Limited

(3)	Analysis of financial status
	Item	Amount (thousand)			% in	relation to total	assets
		30th	At the	30th	30th	At the	Increase/
		September,	beginning	June,	September,	beginning	decrease
		2002	of this year	2002	2002	of this year	(+/-)%
	Accounts receivable	457,354	550,785	702,159	3.58	4.85	–26.19
	Other receivable	555,393	401,120	335,425	4.35	3.53	23.23
	Inventories	555,591	439,882	627,329	4.35	3.88	12.11
	Intangible Asset	742,338	497,875	747,274	5.82	4.39	32.57
	Total assets	12,764,699	11,350,223	12,575,236	100.00	100.00	0.00

For the first three quarters ended 30th September 2002, the accounts receivable was RMB457.354 million, representing a decrease of RMB93.431 million or 17.0%, compared with that at the beginning of the year. The proportion of accounts receivable to total asset is reduced by 26.2%, compared with that at the beginning of the year. This was principally due to the fact that the Company has strengthened its efforts in the collection of receivables, resulting in a significant decrease in accounts receivable, which was RMB244.805 million less than that on 30th June, 2002.

Other receivable of the Company as at 30th September, 2002 was RMB555.393 million, representing an increase of RMB154.273 million or 38.5%, compared with that of the beginning of the year. The proportion of other receivables to total asset increased by 23.2%, compared with the proportion at the beginning of the year. This was mainly attributable to the increase in the prepayment of transportation expenses and other operating activities.

Inventories of the Company as at 30th September, 2002 was RMB555.591 million, representing an increase of RMB115.709 million or 26.3% compared with that of the beginning of the year. The proportion of Inventory to total assets increased by 12.1% compared with that at the beginning of the year. The increase was mainly due to (i) increased sales volume transported through the canals, resulting in a higher volume of coal in transit and (ii) increases in production and varieties of coal products offered for sale, resulting in higher volume of total coal stocks. Inventories stored at the warehouse of the Company decreased by RMB71.738 million, compared with that on 30th June, 2002.

Intangible asset was RMB742.338 million as at 30th September, 2002, representing an increase of RMB244.463 million or 49.1% compared with that of the beginning of the year. The proportion of intangible assets to total assets increased by 32.6% compared with the proportion at the beginning of the year. The increase was mainly attributable to the increase of land use right of the Railway Asset. It was RMB4.936 million less than that of 30th June, 2002.

3. Contingent and Post-report Matters

• (1) The Company was not involved in any material litigation or arbitration during the period under review.

• (2) The Company has not given any material guarantee or received any investment services during the period under review.

4. Other Significant Events

• (1) Acquisition of Jining III Coal Mine

The Company completed the acquisition of Jining III Coal Mine from the Parent Company on 1st January, 2001. The purchase price was RMB2,450.905 million. RMB2,364.271 million of the purchase price has been paid off by the Company with cash in hand and the net proceeds raised from the new issuance of shares. The remaining RMB86.634 million will be paid before 31st December, 2002 .

The consideration of the mining right of Jining III is approximately RMB132.479 million, which shall be paid to the Parent Company in ten equal annual interest free installments, commencing from 2001. By the end of the period under review, the Company has paid the purchase price of RMB26.496 million.

• (2) Acquisition of Railway Assets

The Company completed the acquisition of the Railway Assets from the Parent Company on 1st January, 2002.

By end of the period under review, the Company has paid off RMB1,242.586 million for the purchase of the Railway Assets.

Yanzhou Coal Mining Company Limited 30 October 2002

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Yanzhou Coal Mining Company Limited

According to the Acquisition Agreement for Railway Assets , when annual transportation volume of the Railway Assets reaches 25 million tonnes, 28 million tonnes, 30 million tonnes in 2002, 2003, 2004 respectively, the company will pay RMB40 million to the Parent Company for each year before every 30th June in three years commencing in 2003.

• (3) Significant connected transactions

The continuous connected transactions during the period under review have complied with the requirements stated in the disclosed agreements signed with the connected parties. According to the practice, there will be a detailed disclosure of the continuous connected transactions in the Annual Report for the year of 2002 of the Company.

The significant connected transaction was the acquisition of the Railway Assets from the Parent Company during the period under review and the details were set out in the section of “Acquisition of Railway Assets” section.

Except as those disclosed above, the Company has not involved in any other significant connected transactions during the reported period.

5. Significant correction of accounting error

The Company has resumed the contribution of maintenance Fee (“Wei Jian Fei”) since 2002. The above adjustment was described as “changes in the accounting policy for the accrual of Wei Jian Fei” in the interim report of 2002 and, according to the relevant regulations, this adjustment was regarded as a “significant correction of accounting error”.

6. Effects on the financial and operational status of the Company by the production/ operational environment as well as the changes in macro policies and regulations

There was no significant influence on the financial status of the Company by the production and operational environment and changes in macro policy.

In the first three quarters of 2002, the Company has achieved a steady increase in the operating results despite the fluctuations in coal prices in the domestic and international coal markets.

The domestic coal demand and supply were in balance, and there was a steady increase in coal price. In the first three quarters of 2002, the total coal production volume in China has increased significantly. Policies on coal industry that the central government continued to impose, i.e., measures in adjusting coal industry structure, closure of profit-losing coal mines and restraining surplus coal production capacity, promoted the balance of supply and demand in domestic coal market. Supported by the stable development of China’s economy, the coal demand increased steadily.

In the first three quarters of 2002, the average domestic coal sales price for the Company was RMB194.41/ ton, representing an increase of 14.0%, when compared with the annual average domestic coal price of 2001. It is estimated that the annual average domestic coal sales price will be higher than that of last year.

In 2002, the average export coal sales price is expected to remain similar to that of last year. The Company has set the annual coal export target of 14 million tonnes for 2002. In the first three quarters of 2002, the average export coal sales price was RMB 269.09/ton, representing an increase of 2.1%, compared with the annual average export coal price of 2001. It is predicted that the annual average export coal price will remain at a similar level to that of last year.

As the world oil price fluctuated dramatically since September, global coal demand has increased significantly. As a result, the spot price in the global coal market has recovered, ending the falling trend since the beginning of the year. The Australian BJ spot coal price, which is the index for global spot coal market, increased to USD 24.50/ton on 24th October, representing an increase of USD 2.50/ton or 11.4%, compared to the low point at the beginning of August. The recovery of coal price in the global coal market would be favourable to the Company to increase both of its export volume and export price.

The average coal sales price this year is expected to be higher than that of last year.

Yanzhou Coal Mining Company Limited 30 October 2002 7

Yanzhou Coal Mining Company Limited

IV. FINANCIAL AND ACCOUNTING STATEMENTS

1. Financial Statements

(1) Condensed consolidated balance sheet (unaudited) Prepared by Yanzhou Coal Mining Company Limited

Unit: RMB thousand

		At the beginning of 2002	At the end of the period
	Assets:
	Current assets	3,370,833	4,100,140
	Long-term investment	1,760	1,760
	Total fixed assets	7,209,066	7,496,034
	Intangible and other assets	497,875	742,338
	Total assets	11,350,223	12,764,699
	Liabilities:
	Current liabilities	2,518,449	1,715,396
	Long-term liabilities	105,983	1,305,983
	Total liabilities	2,624,432	3,021,379
	Minority interest	2,464	4,693
	Shareholders’ equity	8,723,328	9,738,628
	Total liabilities and shareholders’ equity	11,350,223	12,764,699
(2)	Condensed consolidated statement of income (unaudited)
	Prepared by Yanzhou Coal Mining Company Limited		Unit: RMB thousand

		July-September	January-September
		in 2002	in 2002
1.	Net revenue from principal operations	2,162,765	5,943,135
2.	Income from principal operations	1,132,405	3,289,670
	add: Income from other operations	5,342	24,599
	less: Expenses during the period	738,942	2,037,084
3.	Operating Profit	398,805	1,277,186
	Net non-operating income and expenses	–7,491	–10,237
4.	Profit before Income Tax	393,349	1,268,984
	Income tax	135,448	423,562
5.	Net profit	257,654	842,600

2. Notes to Financial Statements

(1) There are no significant changes in accounting policies, accounting estimates and scope of consolidated financial statements for the current period as compared with that for the period previously reported of the current year.

(2) There are no significant changes in accounting policies compared with that for annual report.

• (3) No subsidiary, which should be consolidated, is excluded from the consolidated financial statements.

Yanzhou Coal Mining Company Limited 30 October 2002 8

Yanzhou Coal Mining Company Limited

V. APPENDIX

Unaudited consolidated balance sheet of Yanzhou Coal Mining Company Limited

Prepared in accordance with PRC GAAP 30th September, 2002

ASSETS CURRENT ASSETS Bank balance and cash Short-term investments Bills receivable Accounts receivable Other receivables Prepayments Value-added-tax refundable Inventories Deferred expenditures TOTAL CURRENT ASSETS Long-term investments FIXED ASSETS Fixed assets at cost Less: Accumulated depreciation FIXED ASSETS, NET Construction materials Construction in progress TOTAL FIXED ASSETS Intangible assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Notes payable Accounts payable Advance from customers Payroll payable Dividend payable Taxes payable Other payables Accrued expenses Provision for land subsidence costs Long-term payable within one year TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Long-term loan Long-term payable TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES MINORITY INTEREST	September 30, 2002 The Group The Company RMB RMB (Unaudited) (Unaudited) 1,401,568,114 1,399,552,412 89,997,305 89,997,305 292,444,572 292,444,572 457,353,893 457,302,303 555,393,315 555,210,299 220,293,762 219,160,482 360,710,938 360,710,938 555,591,275 551,007,178 166,787,134 166,787,134 4,100,140,308 4,092,172,623 1,760,419 6,922,261 12,799,960,428 12,799,467,704 5,303,926,855 5,303,731,969 7,496,033,573 7,495,735,735 8,865,947 8,865,947 415,561,200 415,561,200 7,920,460,720 7,920,162,882 742,337,981 742,337,981 12,764,699,428 12,761,595,747 113,351,674 113,351,674 530,783,512 533,140,051 196,511,014 195,595,032 38,514,699 38,514,699 – – 180,281,966 180,520,599 387,563,142 387,473,035 51,348,626 51,348,626 130,407,220 130,407,220 86,633,816 86,633,816 1,715,395,669 1,716,984,752 1,200,000,000 1,200,000,000 105,983,040 105,983,040 1,305,983,040 1,305,983,040 3,021,378,709 3,022,967,792 4,692,764 –	Decembe The Group RMB (Audited) 1,154,806,342 49,997,305 155,883,666 550,784,838 401,119,702 88,165,432 419,145,249 439,882,298 111,048,395 3,370,833,227 1,760,419 11,702,052,041 4,492,985,894 7,209,066,147 1,697,068 268,991,536 7,479,754,751 497,874,780 11,350,223,177 275,860,000 553,982,959 122,908,153 36,130,872 287,000,000 104,422,929 381,314,134 – 120,196,012 636,633,816 2,518,448,875 – 105,983,040 105,983,040 2,624,431,915 2,463,683	r 31, 2001 The Company RMB (Audited) 1,150,155,924 49,997,305 155,883,666 550,784,838 400,993,716 94,810,318 419,145,249 426,352,865 111,048,395
			3,359,172,276
			4,470,322
			11,701,559,317 4,492,836,855
			7,208,722,462 1,697,068 268,991,536
			7,479,411,066
			497,874,780
			11,340,928,444
			275,860,000 552,320,331 122,794,582 36,130,872 287,000,000 103,629,887 377,052,325 – 120,196,012 636,633,816 2,511,617,825 – 105,983,040 105,983,040 2,617,600,865 –

Yanzhou Coal Mining Company Limited 30 October 2002

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Yanzhou Coal Mining Company Limited

SHAREHOLDERS’ EQUITY:
Share capital	2,870,000,000	2,870,000,000	2,870,000,000	2,870,000,000
Capital reserves	4,396,611,523	4,396,611,523	4,223,911,394	4,223,911,394
Surplus reserve	431,712,152	431,712,152	431,712,152	431,712,152
Including: Welfare fund	169,547,980	169,547,980	143,904,051	143,904,051
Unappropriated profits	2,040,304,280	2,040,304,280	1,197,704,033	1,197,704,033
TOTAL SHAREHOLDERS’ EQUITY	9,738,627,955	9,738,627,955	8,723,327,579	8,723,327,579
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY	12,764,699,428	12,761,595,747	11,350,223,177	11,340,928,444
Chairman: Mo Liqi
Chief Financial Officer: Wu Yuxiang
Chief of the Plan and Financial Department: Zhang Baocai

Unaudited Statement of Income and Profit Appropriations of Yanzhou Coal Mining Company Limited Prepared in accordance with PRC GAAP

Net revenue from principal operations Less: Cost of principal operations Sales taxes on principal operations Income from principal operations Add: Income from other operations Less: Operating expenses Administrative expenses Financial expenses Operating profit Add: Investment income Subsidies Non-operating income Less: Non-operating expenses Profit before income taxes Less: Income taxes Minority Interest Net profit Add: Unappropriated profits at the beginning of the period Profits available for appropriation Less: Appropriation to statutory commom fund Appropriation to common welfare fund Profits available for appropriation to shareholders Less: Dividends Unappropriated profits at the end of the period SUPPLEMENTAL INFORMATION: Effect on corrections of accounting errors: Decrease of total profit Increase of capital reserve	3 months ended September 30, 2002 The Group The Company RMB RMB (Unaudited) (Unaudited) 2,162,764,863 2,162,764,863 1,011,516,455 1,010,715,010 18,843,760 18,833,683 1,132,404,648 1,133,216,170 5,342,235 4,129,228 467,352,547 467,665,626 258,092,147 257,893,749 13,497,133 13,503,449 398,805,056 398,282,574 – 271,605 2,035,035 2,035,035 453,537 453,537 7,944,557 7,940,603 393,349,071 393,102,148 135,447,813 135,447,813 246,923 – 257,654,335 257,654,335 1,782,649,945 1,782,649,945 2,040,304,280 2,040,304,280 – – – – 2,040,304,280 2,040,304,280 – – 2,040,304,280 2,040,304,280 56,915,280 56,915,280 56,915,280 56,915,280	9 months e ended September 30, 2002 The Group The Company RMB RMB (Unaudited) (Unaudited) 5,943,134,909 5,943,134,909 2,584,131,075 2,589,394,690 69,333,365 69,200,729 3,289,670,469 3,284,539,490 24,599,395 18,981,927 1,248,634,438 1,245,127,172 743,956,704 743,242,805 44,492,896 44,509,498 1,277,185,826 1,270,641,942 – 3,103,087 2,035,035 2,035,035 2,203,890 2,203,890 12,441,130 12,430,863 1,268,983,621 1,265,553,091 423,562,319 422,952,844 2,821,055 – 842,600,247 842,600,247 1,197,704,033 1,197,704,033 2,040,304,280 2,040,304,280 – – – – 2,040,304,280 2,040,304,280 – – 2,040,304,280 2,040,304,280 172,700,130 172,700,130 172,700,130 172,700,130	3 months nded September e 30, 2001 The Company RMB (Unaudited) 1,734,950,351 786,304,287 11,263,686 937,382,378 7,891,933 426,383,774 195,453,936 (17,999,126) 341,435,727 – – 3,685,441 776,214 344,344,954 112,069,191 – 232,275,763 1,152,580,634 1,384,856,397 – – 1,384,856,397 – 1,384,856,397 51,606,468 51,606,468	9 months nded September 30, 2001 The Company RMB (Unaudited) 4,820,955,263 2,250,469,314 58,599,241
				2,511,886,708 27,517,093 1,162,026,688 539,841,616 (25,578,168)
				863,113,665 – – 3,954,596 6,194,290
				860,873,971 283,906,331 –
				576,967,640 807,888,757
				1,384,856,397 – –
				1,384,856,397 –
				1,384,856,397
				153,552,852 153,552,852

Yanzhou Coal Mining Company Limited 30 October 2002 10

Yanzhou Coal Mining Company Limited

Chairman: Mo Liqi Chief Financial Officer: Wu Yuxiang Chief of the Plan and Financial Department: Zhang Baocai

By order of the Board Yanzhou Coal Mining Company Limited Mo Liqi Chairman

Shandong Province, the People’s Republic of China, 29th October, 2002

Please also refer to the published version of this announcement in South China Morning Post dated 30 October 2002.

Yanzhou Coal Mining Company Limited 30 October 2002 11