CStone Pharmaceuticals — Interim / Quarterly Report 2003

Apr 28, 2003

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.

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 QUARTERLY REPORT FOR THE YEAR 2003

IMPORTANT

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

The Company’s Board of Directors and the Directors confirm that this Report does not contain any false information, misleading statements or material omissions, and accept joint and several responsibility for the truthfulness, accuracy and completeness of the content.

The Company’s chairman, Mr. Mo Liqi, chief financial officer, Mr. Wu Yuxiang, and chief of the planning and finance department, Mr. Zhang Baocai, confirm that financial statements of the Report are true and complete.

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

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003 1

YANZHOU COAL MINING COMPANY LIMITED

• Summary of the unaudited results for the first quarter ended 31st March 2003: • This first quarterly report for the year 2003 (the “Report”) is prepared in accordance with the regulations on Disclosure of Information in Quarterly Reports for Listed Companies of China Securities Regulatory Commission.

• • All financial information contained in the 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 periodical reports as announced overseas. Please refer to the section headed “Brief analysis of general operating performance during the period under review”. Shareholders of the Company and public investors should be aware of investment risks when trading in shares in the Company.

• • During the period under review, revenue from principal operations was RMB2,007.673 million, representing an increase of RMB247.132 million or 14.0% over the same period last year. Realized net profit was RMB259.214 million, representing an increase of RMB4.55 million or 1.8% over the same period last year.

• • Unless otherwise specified, the currency in the Report is denominated in Renminbi.

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

1.	GENERAL INFORMATION	GENERAL INFORMATION
1.1	General Information
	Stock abbreviation	Yanzhou Mei Ye	–	–
	Stock abbreviation
	before change
	(if applicable)	–	–	–
	Stock code	600188	1171	YZC
	Listed Stock	Shanghai Stock	The Stock	The New York
	Exchange	Exchange	Exchange	Stock Exchange,
			of Hong Kong	Inc.
			Limited
		Secretary of the	Representative of
		Board of Directors	Securities Business
	Name	Chen Guangshui			–
	Contact	40 Fushan Road,			–
	address	Zoucheng,
		Shandong Province,
		PRC
	Tel	(86-537)-5382319			–
	Fax	(86-537)-5383311			–
	E-mail:	yzc@yanzhoucoal.com.cn			–

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003

2

YANZHOU COAL MINING COMPANY LIMITED

1.2 Financial Information

1.2.1 Major financial statistics and indexes

	At the end of this	At the end of the	Increase/
	reporting period	last financial year	decrease
	(unaudited)	(audited)	(%)
Total assets (RMB)	13,325,895,301	12,983,548,363	2.6
Shareholders’ equity
(excluding minority
interest) (RMB)	9,982,477,397	9,658,573,023	3.4
Net assets per share (RMB)	3.478	3.365	3.4
Net assets per share
after adjustment (RMB)	3.423	3.326	2.9
	Reporting	From the	Increase/
	period	beginning	decrease
	(unaudited)	of this year	(%) of this
		**to the end **	reporting period
		of this reporting	over the same
		period	period last year
		(unaudited)
Net cash flow from
operating activities (RMB)	235,041,725	235,041,725	–
Earnings per share (RMB)	0.090	0.090	1.8
Return on net assets (%)	2.60	2.60	–7.8
Return on net assets after
deducting extraordinary
gain and loss (%)	2.66	2.66	–7.3
Extraordinary gain and	loss		Amount(RMB)
Non-operating income			22,875
Non-operating expenses			2,230,715
Impact on income tax			541,454
Total			1,666,386

1.2.2 Statement of income

Statement of income and profits appropriation

(For the three months ended 31st March)

				Unit: RMB Yuan	Unit: RMB Yuan
Item		2003	2002	2003	2002
		The Group	The Group	The Company	The Company
		(unaudited)	(unaudited and	(unaudited)	(unaudited and
			restated)		restated)
Net revenue from
principal operations		2,007,673,447	1,760,361,148	2,007,673,447	1,760,361,148
Less:	Cost of principal
	operations	941,393,989	744,793,510	941,406,089	747,284,066
	Sales taxes and
	surcharges	24,672,746	32,677,576	24,672,746	32,656,812
Profit	from principal
operations		1,041,606,712	982,890,062	1,041,594,612	980,420,270

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003

3

YANZHOU COAL MINING COMPANY LIMITED

Add: Profit from other
operations	11,697,538	8,256,443	10,019,061	7,366,103
Less: Operating expenses	375,832,455	364,179,559	374,586,678	362,779,976
Administrative expenses	257,389,695	207,538,880	257,028,304	207,307,936
Financial expenses	16,095,229	10,606,120	16,095,399	10,611,801
Operating Profit	403,986,871	408,821,946	403,903,292	407,086,660
Add: Investment income	–	–	29,332	722,503
Subsidy income	4,495,207	–	4,495,207	–
Non-operating income	22,875	1,584,868	22,875	1,584,868
Less: Non-operating expenses	2,230,715	1,508,833	2,230,715	1,502,520
Total profit	406,274,238	408,897,981	406,219,991	407,891,511
Less: Income taxes	147,033,722	153,577,579	147,006,141	153,227,914
Minority interest	26,666	656,805	–	–
Net profit	259,213,850	254,663,597	259,213,850	254,663,597
Add: Unappropriated
profits at the
beginning of
the year	1,751,708,336	1,197,704,033	1,751,872,206	1,197,704,033
Profit available for
appropriation	2,010,922,186	1,452,367,630	2,011,086,056	1,452,367,630
Less: Appropriation to
statutory
common fund	–	–	–	–
Appropriation to
statutory common
welfare fund	–	–	–	–
Profits available for
appropriation to
shareholders	2,010,922,186	1,452,367,630	2,011,086,056	1,452,367,630
Less: Ordinary share
dividend
payable	–	–	–	–
Unappropriated profits	2,010,922,186	1,452,367,630	2,011,086,056	1,452,367,630
Supplemental information
Item	The Group	The Group	The Company	The Company
	(first three	(first three	(first three	(first three
	months	months	months	months
	of 2003)	of 2002)	of 2003)	of 2002)
Effect on changes in
accounting treatment
of Wei Jian Fei:
– Decrease in total profit	Not applicable	56,955,582	Not applicable	56,955,582
– Increase in capital
reserves	Not applicable	56,955,582	Not applicable	56,955,582

1.3 Number of shareholders as at 31st March, 2003

As at 31st March, 2003, the Company had a total of 64,924 shareholders, of which one was a holder of state legal person shares, 64,788 were holders of A Shares and 135 were holders of H Shares.

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003

4

YANZHOU COAL MINING COMPANY LIMITED

2. MANAGEMENT DISCUSSION AND ANALYSIS

2.1 Brief analysis of general operating performance during the period under review

(1) Brief analysis of general operating performance

During the period under review, the Company achieved stable growth in operating results through the continuous implementation of the operating strategies of increasing coal output and sales, and stabilizing export volume.

During the period under review, the Company’s net revenue from principal operations was RMB2,007.673 million, representing an increase of RMB247.312 million or 14.0% over that of the same period in 2002. Income from the sales of coal was RMB1,973.906 million, which has increased by RMB250.882 million or 14.6% as compared with that of the same period last year. This was principally due to: (i) increase in sales volume which resulted in an increase in net revenue from principal operations by RMB367.684 million; (ii) decrease of coal price which resulted in a decrease of net revenue from principal operations by RMB116.802 million. Income from the special purpose coal transportation service (the “Railway Assets”) was RMB33.767 million, representing a decrease of RMB3.57 million or 9.6% over the same period in 2002. This was mainly due to a decrease in volume of external transportation, which the customers bear the transportation expenses, over that of the same period in 2002.

During the period under review, the Company’s cost of principal operations was RMB941.394 million, representing an increase of RMB196.6 million or 26.4% over that of the same period in 2002. Cost of coal sold was RMB920.994 million, which has increased by RMB190.313 million or 26.0% as compared with that of the same period last year. This was mainly due to an increase in sales volume and employees’ wages. The unit cost of coal sold was RMB99.75/tonne, representing an increase of RMB3.73/tonne or 3.9% as compared with that of the same period in the previous year. This was mainly due to an increase in employees’ wages. Cost of the services provided by the Railway Assets was RMB20.4 million, representing an increase of RMB6.287 million or 44.5% as compared with that of the same period in the previous year.

The Company’s profit from principal operations increased by RMB58.717 million or 6.0% to RMB1,041.607 million as compared with that of the same period in 2002.

The Company’s net profit increased by RMB4.55 million or 1.8% to RMB259.214 million as compared with that of the same period in 2002.

The Company’s coal production increased by 1.29 million tonnes or 13.6% to 10.78 million tonnes as compared with that of the same period in 2002.

During the period under review, the Company sold 9.23 million tonnes of coal, representing an increase of 1.62 million or 21.3% over that of the same period in 2002. Sales to the domestic market was 5.87 million tonnes, representing an increase of 1.32 million tonnes or 29.0% over that of the same period in 2002. Sales to overseas market was 3.36 million tonnes, representing an increase of 0.3 million or 9.8% over that of the same period in 2002.

During the period under review, the Company’s average coal price was RMB213.78/tonne, representing a decrease of RMB12.65/tonne or 5.6% as compared with that of the same period in 2002. The average domestic coal price was RMB185.24/tonne, representing a decrease of RMB2.61/tonne or 1.4% as compared with that of the same period in 2002. The average export coal price was RMB263.66/tonne, representing a decrease of RMB20.2/tonne or

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003

5

YANZHOU COAL MINING COMPANY LIMITED

7.1% as compared with that of the same period in 2002.The decrease in average coal price was principally due to: (i) sales of mixed coal and others with lower selling prices in domestic market increased substantially in the first quarter of 2003; and (ii) the coal export price for the first quarter of 2003 was the contract price determined in 2002. The coal export price in the first quarter of 2003 was lower than that of the same period last year.

The following table sets out the Company’s coal prices during the period under review:

			Unit: RMB/tonne
			For the year
	First	First	ended 31st
	quarter of	quarter of	December,
	2003	2002	2002
Average sales price	213.78	226.43	225.63
Domestic sales	185.24	187.85	194.78
Export sales	263.66	283.86	269.53

During the period under review, coal transported by the Railway Assets reached 6.49 million tonnes, representing an increase of 0.28 million tonnes or 4.5% as compared with that of the same period last year.

(2)

Coal sales prices calculated in accordance with the basis reflected in its previous periodical reports as announced overseas

As calculated in accordance with the basis reflected in its previous periodical reports as announced overseas, the average coal sales price in the first quarter of 2003 was RMB172.27/tonne, representing a decrease of RMB6.43/tonne or 3.6% over that of the same period last year. Average domestic sales price was RMB164.00/tonne, representing an increase of RMB1.69/tonne or 1.0% over that of the same period last year. Average export price was RMB186.73/tonne, representing a decrease of RMB16.37/tonne or 8.1% over that of the same period last year.

Coal sales prices calculated in accordance with the basis reflected in its previous periodical reports as announced overseas:

			Unit: RMB/tonne
			For the year
	First	First	ended 31st
	quarter of	quarter of	December,
	2003	2002	2002
Average sales price	172.27	178.70	177.30
Domestic sales	164.00	162.31	165.87
Export sales	186.73	203.10	193.55

(3)

Sales of coal contracts and the sales target in 2003

For 2003, the Company has signed coal contracts and letter of intent for domestic market for 25.26 million tonnes, representing an increase of 4.68 million tonnes or 22.7% as compared with the actual sales volume in domestic market in 2002. The Company has signed coal contracts for 10.8 million tonnes and letters of intent for 14.46 million tonnes for the domestic market. The composite average coal price of the signed sales contracts for domestic market was RMB180.7/tonne (after taxes), representing an increase of RMB 1.9/tonne or 1.1% as compared with the actual average price level in 2002.

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003 6

YANZHOU COAL MINING COMPANY LIMITED

The negotiation of long-term export coal contract has not yet been completed. It is expected that there will be a slight decrease in the Company’s export coal price.

The sales volume target of the Company for 2003 is 38 million tonnes, as to 24 million tonnes for domestic market and 14 million tonnes for overseas markets.

• 2.1.1 Information on principal operations or products which contributed 10% or more to the revenue from principal operations or profit from principal operations.

Industries/	Net revenue from	Cost of principal
products	principal operations	operations	Gross profit ratio
	(RMB thousand)	(RMB thousand)	(%)
Coal mining & preparation	1,973,906	920,994	53.34
Including: connected
transactions	48,945	22,837	53.34

• 2.1.2 Seasonal or periodical factors for the Company’s operation: Applicable Not applicable

• 2.1.3 Financial information on results for the reporting period ( major changes in the proportion of the following items which constituted the total profit as compared with 2002 and the reasons thereof: profit from principal operations, profit from other operations, expenses, investment income, subsidy income and net nonoperating income and expenses).

For the financial year Period ended 31st under review December, 2002 (RMB thousand) (RMB thousand) Profit from principal operations 1,041,607 4,321,275 Profit from other operations 11,698 30,153 Expenses 649,317 2,831,288 Investment income 0 3,688 Subsidy income 4,495 20,157 Net non-operating income and expenses –2,208 –13,270 Total profit 406,274 1,530,714	In relation to profit (%)
	For the financial year Period ended 31st Increase/ under review December, 2002 decrease (%) 256.38 282.30 –9.2 2.88 1.97 46.2 159.82 184.97 –13.6 0.00 0.24 –100.0 1.11 1.32 –15.9 –0.54 –0.87 – 100.00 100.00 0.0

During the period under review, the proportion of the profit from other operations in the total profit of the Company increased from 1.97% to 2.88% as compared with the previous reported period, representing an increase of 46.2%. This was mainly due to an increase in profit from the sales of materials.

During the period under review, there was no investment income.

During the period under review, the proportion of net non-operating income and expenses in the total profit of the Company increased from -0.87% to -0.54% as compared with the previous reported period. This was mainly due to a decrease in non-operating expenses.

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003

7

YANZHOU COAL MINING COMPANY LIMITED

• 2.1.4 Details and explanation on major changes in principal operation and its composition as compared with the previous reported period. Applicable Not applicable

• 2.1.5 Details and explanation on major changes in the profit generating ability (gross profit ratio) of principal operations as compared with the previous reported period.

• Applicable Not applicable

• 2.2 Major events and their impact and analysis on the solutions Construction of Jining Sihe coal port

The Company’s Board of Directors held a meeting on 11th April, 2003, at which a resolution has been passed to approve the opening of an inland river route connecting Jining III coal mine to the Jinghang Grand Canal by the construction of the Jining Sihe Coal Port which is adjacent to Jining III coal mine. Details have been set out in domestic Shanghai Security and China Securities, Wen Wei Po and South China Morning Post of Hong Kong on 14th April, 2003.

• 2.3 Details and reasons for changes in accounting policies, accounting estimations, scope of consolidation and significant accounting errors. Applicable Not applicable

• 2.4 Explanations made by the Board and the Supervisory Committee under the situation that an audit report with non-standard opinion was issued.

Applicable Not applicable 2.4 Explanations made by the Board and the Supervisory Committee under the situation that an audit report with non-standard opinion was issued. Applicable Not applicable 2.5 Caution and explanations for possible loss or material changes in net profit in the period from the beginning of this year to the end of the next reporting period as compared with the same period in last year. Applicable Not applicable 2.6 Subsequent changes on those already disclosed annual business plan or budget of the Company Applicable Not applicable Note: The full versions of the Company’s balance sheet, income statement and cash-flow statement for the three months ended 31st March, 2003, are published on the website of The Stock Exchange of Hong Kong Limited at http://www.hkex.com.hk and Shanghai Stock Exchange at http:// www.sse.com.cn.

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

Zoucheng, PRC, 25th April, 2003

YANZHOU COAL MINING COMPANY LIMITED 28-4-2003 8

Yanzhou Coal Mining Company Limited

Yanzhou Coal Mining Company Limited BALANCE SHEET AT MARCH 31, 2003

			Unit: RMB Yuan	Unit: RMB Yuan
ASSETS	The Group		The Company
	March 31, 2003 (Unaudited)	December 31, 2002 (Audited)	March 31, 2003 (Unaudited)	December 31, 2002 (Audited)
CURRENT ASSETS Bank balances and cash Current investments Notes receivable Dividends receivable Accounts receivable Other receivables Prepayments Subsidies receivable Inventories Deferred expenses TOTAL CURRENT ASSETS LONG-TERM EQUITY INVESTMENTS FIXED ASSETS Fixed assets - cost Less: Accumulated depreciation Fixed assts - net book value Materials for constructing fixed assets Fixed assets under construction TOTAL FIXED ASSETS INTANGIBLE ASSETS TOTAL ASSETS	1,691,668,315 88,702,100 385,603,104 - 569,806,128 465,257,646 143,651,629 325,144,827 602,087,762 155,959,086 4,427,880,597 31,897,684 13,630,339,424 5,721,780,835 7,908,558,589 1,837,241 184,235,739 8,094,631,569 771,485,451 13,325,895,301	1,595,933,728 88,702,100 239,974,223 - 573,446,193 223,141,786 146,339,631 342,595,878 576,579,303 110,560,888 3,897,273,730 31,897,684 13,632,796,969 5,480,779,065 8,152,017,904 1,899,659 123,022,757 8,276,940,320 777,436,629 12,983,548,363	1,685,302,955 88,702,100 385,603,104 - 569,806,128 465,214,107 143,348,642 325,144,827 592,805,528 155,959,086 4,411,886,477 35,414,882 13,629,526,400 5,721,534,781 7,907,991,619 1,837,241 184,235,739 8,094,064,599 771,485,451 13,312,851,409	1,592,397,958 88,702,100 239,974,223 655,479 573,446,193 222,698,314 145,812,599 342,595,878 569,496,944 110,560,888 3,886,340,576 36,672,090 13,631,983,945 5,480,563,829 8,151,420,116 1,899,659 123,022,757 8,276,342,532 777,436,629 12,976,791,827
Prepared by Yanzhou Coal Mining Company Limited		Legal representative: The person in charge of accountancy work: The person in charge of the accounting department:		Mo Liqi Wu Yuxiang Zhang Baocai

Yanzhou Coal Mining Company Limited 28 April 2003

9

Yanzhou Coal Mining Company Limited

Yanzhou Coal Mining Company Limited BALANCE SHEET (continued) AT MARCH 31, 2003

			Unit: RMB Yuan	Unit: RMB Yuan
LIABILITIES AND SHAREHOLDERS’ EQUITY	The	Group	The Company
	March 31, 2003 (Unaudited)	December 31, 2002 (Audited)	March 31, 2003 (Unaudited)	December 31, 2002 (Audited)
CURRENT LIABILITIES Notes payable Accounts payable Advances from customers Salaries and wages payable Dividends payable Taxes payable Other payables Accured expenses Provision Long-term payable due within one year TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Long-term loan Long-term payable TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES MINORITY INTEREST SHAREHOLDERS’ EQUITY Share capital Capital reserves Surplus reserves Including: Statutory common welfare fund Retained earnings TOTAL SHAREHOLDERS’EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY	114,570,000 526,028,743 164,074,313 46,406,175 298,480,000 331,079,776 383,184,533 42,989,624 126,254,578 13,247,800 2,046,315,542 1,200,000,000 92,735,160 1,292,735,160 3,339,050,702 4,367,202 2,870,000,000 4,519,211,864 582,343,347 194,141,761 2,010,922,186 9,982,477,397 13,325,895,301	108,001,674 557,175,701 171,826,093 46,389,189 298,480,000 206,139,942 542,999,385 - 83,043,947 13,247,800 2,027,303,731 1,200,000,000 92,735,160 1,292,735,160 3,320,038,891 4,936,449 2,870,000,000 4,454,521,340 582,343,347 194,141,761 1,751,708,336 9,658,573,023 12,983,548,363	114,570,000 521,690,543 160,460,579 46,406,175 298,480,000 331,382,397 382,157,156 42,989,624 126,254,578 13,247,800 2,037,638,852 1,200,000,000 92,735,160 1,292,735,160 3,330,374,012 - 2,870,000,000 4,519,211,864 582,179,477 194,059,826 2,011,086,056 9,982,477,397 13,312,851,409	108,001,674 556,939,363 170,508,547 46,389,189 298,480,000 206,021,490 542,851,634 - 83,043,947 13,247,800 2,025,483,644 1,200,000,000 92,735,160 1,292,735,160 3,318,218,804 - 2,870,000,000 4,454,521,340 582,179,477 194,059,826 1,751,872,206 9,658,573,023 12,976,791,827

Prepared by Yanzhou Coal Mining Company Limited

Legal representative: Mo Liqi The person in charge of Wu Yuxiang accountancy work: The person in charge of the accounting Zhang Baocai department:

Yanzhou Coal Mining Company Limited 28 April 2003

10

Yanzhou Coal Mining Company Limited

Yanzhou Coal Mining Company Limited STATEMENT OF INCOME AND PROFITS APPROPRIATION FOR THE PERIOD ENDED MARCH 31, 2003

	Unit: RMB Yuan	Unit: RMB Yuan	Unit: RMB Yuan	Unit: RMB Yuan
	3 MONTHS ENDED MARCH 31
	The Group		The Company
	2003 (Unaudited)	2002 (Unaudited & Restated)	2003 (Unaudited)	2002 (Unaudited & Restated)
Net revenue from principal operations Less: Cost of principal operations Sales taxes and surcharges Profit from principal operations Add: Profit from other operations Less: Operating expenses Administrative expenses Financial expenses Operating profit Add: Investment income Subsidy income Non-operating income Less: Non-operating expenses Total profit Less: Income taxes Minority interest Net profit Add: Unappropriated profits at the beginning of the period Profit available for appropriation Less: Appropriations to statutory common reserve fund Appropriations to statutory common welfare fund Profits available for appropriation to shareholders Less: Ordinary share dividend payable Unappropriated profits at the end of theperiod	2,007,673,447 941,393,989 24,672,746 1,041,606,712 11,697,538 375,832,455 257,389,695 16,095,229 403,986,871 - 4,495,207 22,875 2,230,715 406,274,238 147,033,722 26,666 259,213,850 1,751,708,336 2,010,922,186 - - 2,010,922,186 - 2,010,922,186	1,760,361,148 744,793,510 32,677,576 982,890,062 8,256,443 364,179,559 207,538,880 10,606,120 408,821,946 - - 1,584,868 1,508,833 408,897,981 153,577,579 656,805 254,663,597 1,197,704,033 1,452,367,630 - - 1,452,367,630 - 1,452,367,630	2,007,673,447 941,406,089 24,672,746 1,041,594,612 10,019,061 374,586,678 257,028,304 16,095,399 403,903,292 29,332 4,495,207 22,875 2,230,715 406,219,991 147,006,141 - 259,213,850 1,751,872,206 2,011,086,056 - - 2,011,086,056 - 2,011,086,056	1,760,361,148 747,284,066 32,656,812 980,420,270 7,366,103 362,779,976 207,307,936 10,611,801 407,086,660 722,503 - 1,584,868 1,502,520 407,891,511 153,227,914 - 254,663,597 1,197,704,033 1,452,367,630 - - 1,452,367,630 - 1,452,367,630
SUPPLEMENTAL INFORMATION:
Effect due to changes in accounting treatment of Wei Jian Fei		3 MONTHS ENDED MARCH 31
	The Group		The Company
	2003	2002	2003	2002
- Decrease in total profit -Increase in capital reserves	N/A N/A	56,955,582 56,955,582	N/A N/A	56,955,582 56,955,582
Prepared by Yanzhou Coal Mining Company Limited	Legal representative: Mo Liqi The person in charge of accountancy work: Wu Yuxiang The person in charge of the accounting department: Zhang Baocai

`

Yanzhou Coal Mining Company Limited 28 April 2003

11

Yanzhou Coal Mining Company Limited

Yanzhou Coal Mining Company Limited CASH FLOW STATEMENT FOR THE PERIOD ENDED MARCH 31, 2003

	Unit: RMB Yuan	Unit: RMB Yuan
	3 MONTHS ENDED MARCH 31, 2003
	The Group (Unaudited)	The Company (Unaudited)
1.CASH FLOW FROM OPERATING ACTIVITIES Cash received from sales of goods or rendering of services Refund of taxes Other cash received relating to operating activities Sub-total of cash inflows Cash paid for goods and services Cash paid to and on behalf of employees Taxes and surcharges paid Other cash paid relating to operating activities Sub-total of cash outflows NET CASH FLOW FROM OPERATING ACTIVITIES 2.CASH FLOW FROM INVESTING ACTIVITIES Cash received from return on investments Net cash received from disposal of fixed assets and other long-term assets Sub-total of cash inflows Cash paid to acquire fixed assets and other long-term assets Increase in restricted cash Sub-total of cash outflows NET CASH FLOW FROM INVESTING ACTIVITIES 3.CASH FLOW FROM FINANCING ACTIVITIES Dividends paid to minority shareholder by a subsidiary Cash paid for interest expenses Sub-total of cash outflows NET CASH FLOW FROM FINANCING ACTIVITIES 4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 5.NET INCREASE IN CASH AND CASH EQUIVALENTS	2,033,378,041 17,451,051 173,086,530 2,223,915,622 480,386,531 338,737,147 145,614,991 1,024,135,228 1,988,873,897 235,041,725 - 29,249 29,249 121,250,474 1,380,045 122,630,519 (122,601,270) 595,913 17,490,000 18,085,913 (18,085,913) - 94,354,542	2,031,081,853 17,451,051 169,951,218 2,218,484,122 482,219,166 338,579,088 145,471,834 1,022,539,831 1,988,809,919 229,674,203 1,942,019 29,249 1,971,268 121,250,474 1,380,045 122,630,519 (120,659,251) - 17,490,000 17,490,000 (17,490,000) - 91,524,952
Prepared by Yanzhou Coal Mining Company Limited	Legal representative: The person in charge of accountancy work: The person in charge of the accounting department:	Mo Liqi Wu Yuxiang Zhang Baocai

Yanzhou Coal Mining Company Limited 28 April 2003 12

Yanzhou Coal Mining Company Limited

Yanzhou Coal Mining Company Limited

CASH FLOW STATEMENT (continued) FOR THE PERIOD ENDED MARCH 31, 2003

	Unit: RMB Yuan	Unit: RMB Yuan
SUPPLEMENTAL INFORMATION:	3 MONTHS ENDED MARCH 31, 2003
	The Group (Unaudited)	The Company (Unaudited)
1.RECONCILIATION OF NET PROFIT TO NET CASH FLOW FROMOPERATING ACTIVITIES Net profit Add: Minority interest Depreciation of fixed assets Provision for Wei Jian Fei Amortization of intangible assets and other assets Losses on disposal of fixed assets and other long-term assets Decrease(increase) in deferred expenses Increase(decrease) in accrued expenses Financial expenses Loss (profit) on investment Decrease (increase) in inventories Decrease (increase) in receivables under operating activities Increase (decrease) in payables under operating activities NET CASH FLOW FROM OPERATING ACTIVITIES 2.NET INCREASE IN CASH AND CASH EQUIVALENTS: Cash at the end of the period Less: Cash at the beginning of the period NET INCREASE IN CASH AND CASH EQUIVALENTS	259,213,850 26,666 244,142,380 64,690,524 5,951,178 256,596 (45,398,198) 42,989,624 17,490,000 - (25,508,459) (363,160,623) 34,348,187 235,041,725 1,638,527,674 1,544,173,132 94,354,542	259,213,850 - 244,111,562 64,690,524 5,951,178 256,596 (45,398,198) 42,989,624 17,490,000 (29,332) (23,308,584) (363,784,601) 27,491,584 229,674,203 1,632,162,314 1,540,637,362 91,524,952
Prepared by Yanzhou Coal Mining Company Limited	Legal representative: The person in charge of accountancy work: The person in charge of the accounting department:	Mo Liqi Wu Yuxiang Zhang Baocai

Please also refer to the published version of this announcement in the South China Morning Post dated 28 April 2003.

Yanzhou Coal Mining Company Limited 28 April 2003

13