CStone Pharmaceuticals — Interim / Quarterly Report 2005

Apr 28, 2005

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) (Stock Code: 1171)

First Quarterly Report for the Year 2005

IMPORTANT

This announcement is made pursuant to the disclosure requirement under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board of directors (the “Board”) and the directors of Yanzhou Coal Mining Company Limited (the “Company”) confirm that this announcement does not contain any false information, misleading statements or material omissions, and accept joint and several responsibilities for the truthfulness, accuracy and completeness of the content.

The Company’s chairman, Mr. Wang Xin, chief financial officer, Mr. Wu Yuxiang, and chief of the planning and finance department, Mr. Zhang Baocai, confirm that the financial statements of the first quarterly report for the year 2005 (the “Report”) are true and complete.

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

Summary of the unaudited results for the first quarter ended 31st March 2005:

• The Report is prepared in accordance with the relevant regulations on Disclosure of Information in Quarterly Reports for Listed Companies of the CSRC.

• All financial information contained in the Report is prepared in accordance with the PRC Generally Accepted Accounting Principles. The Company has also provided the average coal prices of the first quarter of 2005 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 the different calculation bases used in the Report, interim and annual reports when trading in shares of the Company.

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

• During the period under review, revenue from principal operations was RMB3,453.162 million, representing an increase of RMB1,102.416 million or 46.9% as compared with the same period last year. Net profit was RMB792.676 million, representing an increase of RMB400.767 million or 102.3% as compared with the same period last year.

• In accordance with the requirements of the CSRC regulations, if a listed company estimates that the accumulated net profit from the beginning of this year to the end of the next reporting period increases by more than 50% as compared with the same period last year, the listed company is required to make an announcement to the public. Solely for the purpose of complying with such regulations, the Company announces that it estimates that the accumulated net profit for the first half of 2005 will increase by more than 50% over the same period in 2004. However, the Company cannot provide any assurance that these results will be achieved. Actual results may vary materially from the projections made. Shareholders of the Company and public investors are cautioned not to place undue reliance on these projections.

• The information in the Report is the same as that published on the Shanghai Stock Exchange, and the Report is published simultaneously in the PRC and overseas.

1. GENERAL INFORMATION

• 1.1 General Information

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

1.2 Financial Information

1.2.1 Major accounting data and indexes

Financial Information Major accounting data and	indexes
	At the end of this	At the end of the
	reporting period	last financial year	Increase/decrease
	(unaudited)	(audited)	(%)
Total assets (RMB)	19,588,498,899	18,213,918,970	7.5
Shareholders’ equity (excluding
minority interest) (RMB)	16,103,223,559	15,252,470,563	5.6
Net assets per share (RMB)	5.24	4.96	5.6

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Net assets per share after
adjustment (RMB)	5.22	4.94	5.7
		From the beginning	Increase/decrease
		of this year to	(%) of this
		the end of this	reporting period
	Reporting period	reporting period	over the same
	(unaudited)	(unaudited)	period last year
Net cash flow from operating
activities (RMB)	1,991,537,608	1,991,537,608	74.3
Earnings per share (RMB)	0.258	0.258	88.3
Return on net assets (%)	4.92	4.92	increase by 1.51
Weighted average return on			per cent.
net assets after deducting
extraordinary gain and loss (%)	5.06	5.06	increase by 1.56
			per cent.
Extraordinary gain and loss			Amount (RMB)
			(unaudited)
Non-operating income			132,511
Non-operating expenses			(529,007 )
Income from short-term investments			(630,563 )
Impact on income tax			452,021
Total			(575,038 )

1.2.2 Statement of income

Yanzhou Coal Mining Company Limited Statement of income

(For the three months ended 31st March)

				Unit: RMB Yuan
	The Group		The Company
	(For the three months		(For the three months
	ended 31 st March)		ended 31 st March)
Item	2005	2004	2005	2004
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenue from principal operations	3,453,162,112	2,350,745,792	3,453,162,112	2,350,745,792
Less: Cost of principal operations	1,214,801,222	1,050,399,560	1,214,913,829	1,050,501,221
Sales taxes and surcharges	59,003,302	39,430,582	59,003,302	39,430,582
Profit from principal operations	2,179,357,588	1,260,915,650	2,179,244,981	1,260,813,989
Add: Profit from other operations	13,495,421	10,904,591	12,605,459	9,644,273
Less: Operating expenses	279,331,360	289,555,562	280,027,740	290,500,158
Administrative expenses	718,681,055	376,168,617	697,585,179	374,458,573
Financial expenses	627,565	4,425,202	340,176	4,435,287
Operating profit	1,194,213,029	601,670,860	1,213,897,345	601,064,244
Add: Investment income	351,525	1,237,629	(19,582,738)	1,653,213
Subsidy income	–	–	–	–
Non-operating income	132,511	292,872	132,511	292,872
Less: Non-operating expenses	529,007	2,747,035	529,007	2,746,685
Total profits	1,194,168,058	600,454,326	1,193,918,111	600,263,644
Less: Income taxes	401,350,226	208,436,846	401,241,685	208,354,395
Minority interest	141,406	108,229	–	–
Net profit	792,676,426	391,909,251	792,676,426	391,909,249

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• 1.3 The total number of shareholders at the end of this reporting period and the top 10 shareholders holding listed shares of the Company

Total number of shareholders at the end of this reporting period The top 10 shareholders holding listed shares of the Company

Unit: shares 21,893

	Number of shares
	at the end of this	Classes of
Full Name of Shareholders	reporting period	shares held
HKSCC Nominees Limited	1,222,517,998	H shares
Zhongxin Classic Allocation
Securities Investment Fund	12,726,984	A shares
Shenyin Wanguo – Citibank
– Deutsche Bank Aktiengesellschaft	12,331,469	A shares
Shenyin Wanguo – Citibank
– UBS Limited	9,275,253	A shares
Changsheng Dramatic Choiceness
Securities Investment Fund	7,531,051	A shares
Kerui Securities Investment Fund	5,224,227	A shares
International Finance – Standard Chartered
– Citigroup Global Markets Limited	4,977,369	A shares
Hanxing Securities Investment Fund	4,307,872	A shares
Tongyi Securities Investment Fund	4,191,693	A shares
Tongsheng Securities Investment Fund	3,977,118	A Shares

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’s revenue from principal operations was RMB3,453.162 million, representing an increase of RMB1,102.416 million or 46.9% over the same period in 2004, among which the income from the sale of coal was RMB3,404.573 million, representing an increase of RMB1,110.514 or 48.4%. The decrease in the sales of coal led to a decrease in income from principal operations amounting to RMB328.986 million whereas the increase in the coal prices led to an increase in revenue from principal operations amounting to RMB1,439.500 million. The railway assets specifically used for the transportation of coal (the “Railway Assets”) realized a railway transportation service income of RMB48.589 million (income realized from the transportation volume, the transportation expenses of which were borne by the customers), representing a decrease of 8.097 million or 14.3% over the same period in 2004. The Company’s cost of principal operations was RMB1,214.801 million, representing an increase of RMB164.401 million or 15.7% over the same period in 2004, among which the cost of sale of coal products was RMB1,191.092 million, representing an increase of RMB159.456 million or 15.5% as compared with the same period last year. The unit cost of coal sales was RMB138.21/tonne, representing an increase of RMB35.66/tonne or 34.8% as compared with the same period last year. Such increase in the unit cost

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of coal sales was mainly attributable to certain factors such as the increase in the provision for safe production expenses, the specific fund for reform and development and commodity prices and employees’ wages, and the increase in fixed costs resulting from the decrease in the sales of coal.

The Company’s profit from principal operations increased by RMB918.442 million or 72.8% to RMB2,179.358 million as compared with the same period in 2004.

The Company’s net profit increased by RMB400.767 million or 102.3% to RMB792.676 million as compared with the same period in 2004.

The Company’s raw coal production was 9.66 million tonnes, representing a decrease of 0.72 million tonnes, or 6.9%, as compared with the same period in 2004. The production volume of saleable coal was 9.06 million tonnes, representing a decrease of 0.65 million tonnes or 6.7%.

The Company sold 8.62 million tonnes of coal, representing a decrease of 1.44 million or 14.3%, as compared with the same period in 2004. Among which 6.48 million tonnes of coal were sold to the domestic market, representing a decrease of 1.20 million tonnes or 15.6%, as compared with the same period in 2004; and 2.14 million tonnes were sold to the overseas market, representing a decrease of 0.24 million or 10.1%, as compared with the same period in 2004.

During the period under review, the railway transportation volume of the Company was 5.86 million tonnes, representing a decrease of 0.81 million tonnes or 12.1%.

(2) Analysis of the Company’s Coal Prices during the Period under Review

			Unit: RMB/tonne
	Year 2005	Year 2004	For the year ended
	The first	The first	31st December,
	quarter	quarter	2004
Average coal price	395.07	228.03	315.25
Domestic	375.66	215.48	286.06
Export	453.69	268.61	396.83

During the period under review, the Company’s average coal price was RMB395.07/tonne, representing an increase of RMB167.04/tonne or 73.3% as compared with the same period in 2004. Among which, the average domestic coal price was RMB375.66/tonne, representing an increase of RMB160.18/tonne or 74.3% as compared with the same period in 2004; and the average export coal price was RMB453.69/tonne, representing an increase of RMB185.08/tonne or 68.9% as compared with the same period in 2004. The increase in coal price reflected mainly the following: (i) the significant increase in the domestic and overseas coal market prices and (ii) the continued implementation of the Company’s sales strategy “Four Optimizations” such as the optimization of product mix, which increased the coal prices.

The table below sets out the average coal prices of the first quarter calculated in accordance with the basis reflected in the Company’s previous periodical reports as announced overseas:

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			Unit: RMB/tonne
	Year 2005	Year 2004	For the year ended
	The first	The first	31st December,
	quarter	quarter	2004
Average coal pricenote	357.39	196.41	272.31
Domestic	357.03	200.73	264.45
Export	358.49	182.46	294.26

Note: The average coal price represents the invoice price deducted by sale tax, transportation cost from the Company to ports, port charges and miscellaneous fees for coal sales.

As calculated in accordance with the basis reflected in the Company’s previous periodical reports and as announced overseas, the average coal price in the first quarter of 2005 was RMB357.39/tonne, representing an increase of RMB160.98/tonne or 82.0% as compared with the same period last year. Among which, the average domestic coal price was RMB357.03/tonne, representing an increase of RMB156.30/tonne or 77.9% as compared with the same period last year, and the average export coal price was RMB358.49/tonne, representing an increase of RMB176.03/tonne or 96.5% as compared with the same period last year.

• 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

	Revenue from	Cost of principal
	principal operations	operations
	(RMB thousand)	(RMB thousand)	Gross profit ratio
Industries/products	(Unaudited)	(Unaudited)	(%)
Coal mining & preparation	3,404,573	1,191,092	65.1
Including: connected transactions	186,598	65,285	65.0

• 2.1.2 Seasonal or periodical factors for the Company’s operation

• Applicable Not applicable√

• 2.1.3 Breakdown of profits for the reporting period (material changes in the proportion of the total profits of the following items as compared with the previous reported period and the reason thereof: profit from principal operations, profit from other operations, expenses, investment income, subsidy income and net non-operating income and expenses)

		For the
		financial year
		ended 31st	In relation to the total profit		(%)
	Period	December,		For the
	under review	2004		financial year
	(RMB	(RMB	Period	ended 31st	Increase/
	thousand)	thousand)	under	December,	decrease
	(Unaudited)	(Audited)	review	2004	(%)
Profit from principal operations	2,179,358	6,891,351	182.50	167.48	9.0
Profit from other operations	13,495	39,032	1.13	0.95	19.0
Expenses	998,640	2,727,000	83.63	66.27	26.2
Investment income	352	25,175	0.03	0.61	-95.1
Subsidy income	–	–	–	–	–
Net non-operating income
and expenses	-396	-113,734	-0.03	-2.76	–
Total profit	1,194,168	4,114,823	100.00	100.00	0.0

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The reason for the changes: the proportion of the Company’ investment income to its total profit decreased by 95.1% from 0.61% for the financial year ended 31st December, 2004 to 0.03% for this reporting period, which is mainly due to the decrease in interest income from the entrusted loan when comparing the period under review with the previous reported period.

• 2.1.4 Details and explanation on material changes in principal operation and its composition as compared with the previous reported period

• Applicable Not applicable√

• 2.1.5 Details and explanation on material changes in the profitability (gross profit margin) 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

• Applicable√ Not applicable Entrusted loan

The Company made an entrusted loan of RMB640 million to Shandong Xin Jia Industrial Company Limited through the Bank of China Jining Branch, which was secured by a guarantee provided by Lianda Group Limited.

To avoid risk and to ensure repayment of the principal and interest of the entrusted loan, the Company has applied and obtained an order from the Higher People’s Court of Shandong Province to freeze 289 million shares held by Lianda Group Limited in Huaxia Bank Company Limited (“Huaxia Bank Shares”). For details of the entrusted loan, please refer to the announcement published in the domestic China Securities Journal and Shanghai Securities News and in Wen Wei Po and South China Morning Post of Hong Kong on 26th April 2005.

Since Shandong Xin Jia Industrial Company Limited failed to duly repay the principal and the interest, the Company lodged an application with the Higher People’s Court of Shandong Province on 22nd January, 2005 for a mandatory execution of the civil mediation notice (Lu Min Er Chu Zi No. 27 (2004)). The Higher People’s Court of Shandong Province gave a verdict on 28th March, 2005 allowing a lawful auction of the freezed Huaxia Bank Shares held by Lianda Group in order to receive the principal, the interest, the penalty interest and the related costs and expenses of the entrusted loan.

As the end of this reporting period, the Higher People’s Court of Shandong Province has not yet completed the procedure for the auction and the Company has not yet received the principal, the interest, the penalty interest and the related costs and expenses of the entrusted loan. As at the end of this reporting period, the Higher People’s Court of Shandong Province has not yet received the principal, the interest, the penalty interest and the related costs and expenses of the entrusted loan.

• 2.3 Details and reasons for the changes in accounting policies, accounting estimations, scope of consolidation and for the significant accounting errors

• Applicable Not applicable√

• 2.4 Explanations made by the Board and the supervisory committee under the situation where an audit report with non-standard opinion was issued Applicable Not applicable√

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• 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

In the first quarter of 2005, the Company’s net profit increased by 102.3% as compared with the same period in 2004.

The Company aims to increase coal sales price by continuously improving the quality of products and optimizing coal mix and products mix.

Based on the prices of the signed domestic coal sales contract of the Company and the trend of the coal prices in domestic and overseas markets, the Company estimates that the accumulated net profit for the first half of 2005 will increase by more than 50% as compared with the same period in 2004.

• (Note: the above estimation was given to comply with the requirements of the China Securities Regulatory Commission (“CSRC”).)

The Company did not prepare the above projections with a view towards compliance with published guidelines of the American Institute of Certified Public Accountants regarding forecasts and projections. The Company is announcing this estimate solely for the purpose of complying with CSRC regulation. Such projections are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company, and upon assumptions with respect to future business decisions which are subject to change. Accordingly, the Company cannot provide any assurance and makes no representation that these results will be achieved. Actual results of the Company may vary materially from the above projections. Shareholders of the Company and public investors are cautioned not to place undue reliance on these projections.

2.6 Subsequent changes on those already disclosed annual business plan or budget of the Company

Applicable Not applicable√

3. DIRECTORS

As at the date of this announcement, the directors of the Company are Mr. Wang Xin, Mr. Geng Jiahuai, Mr. Yang Deyu, Mr. Mo Liqi, Mr. Wang Bangjun, Mr. Yang Jiachun, Mr. Wu Yuxiang, Mr. Wang Xinkun and Mr. Dong Yunqing and the independent non-executive directors of the Company are Mr. Fan Weitang, Mr. Cui Jianmin, Mr. Wang Xiaojun and Mr.Wang Quanxi.

Note: The full versions of the Company’s balance sheet, income statement and cash flow statement for the first quarter of 2005 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

Wang Xin

Chairman of the Board

Zoucheng, PRC, 27th April, 2005

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

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Yanzhou Coal Mining Co.,Ltd. BALANCE SHEET AT MARCH 31, 2005

			Unit: RMB Yuan	Unit: RMB Yuan
ASSETS	The Group		The Company
	March 31, 2005 (Unaudited)	December 31, 2004 (Audited)	March 31, 2005 (Unaudited)	December 31, 2004 (Audited)
CURRENT ASSETS Bank balances and cash Current investments Notes receivable Dividend receivable Accounts receivable Other receivables Prepayments Subsidies receivable Inventories Deferred expenses TOTAL CURRENT ASSETS LONG-TERM INVESTMENTS Long-term equity investments FIXED ASSETS Fixed assets - cost Less: Accumulated depreciation Fixed assts - net book value Materials held for constructing fixed assets Fixed assets under construction TOTAL FIXED ASSETS INTANGIBLE ASSETS TOTAL ASSETS	7,243,129,297 850,000,000 722,847,290 - 270,088,902 207,115,792 118,515,342 - 533,218,794 60,274,076 10,005,189,493 645,947,016 15,032,747,397 7,012,764,570 8,019,982,827 2,090,823 95,854,917 8,117,928,567 819,433,823 19,588,498,899	5,278,468,720 850,000,000 898,465,509 - 340,848,078 432,247,118 60,049,058 - 485,428,372 56,644,671 8,402,151,526 646,226,054 15,024,982,743 6,773,521,923 8,251,460,820 1,993,287 84,512,193 8,337,966,300 827,575,090 18,213,918,970	6,189,230,777 850,000,000 722,447,290 - 270,088,902 428,191,391 115,177,880 - 530,729,209 60,209,681 9,166,075,130 1,597,922,035 14,815,021,981 7,004,973,081 7,810,048,900 2,090,823 84,495,632 7,896,635,355 786,799,442 19,447,431,962	5,003,516,578 850,000,000 897,865,509 350,456 340,848,078 401,278,358 66,218,808 - 474,377,994 55,863,146 8,090,318,927 1,618,135,335 14,813,883,039 6,766,087,913 8,047,795,126 1,993,287 81,594,857 8,131,383,270 794,940,709 18,634,778,241
	-

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Yanzhou Coal Mining Co.,Ltd. BALANCE SHEET AT MARCH 31, 2005

			Unit: RMB Yuan	Unit: RMB Yuan
LIABILITIES AND SHAREHOLDERS’ EQUITY	The	Group	The Company
	March 31,2005 (Unaudited)	December 31, 2004 (Audited)	March 31,2005 (Unaudited)	December 31, 2004 (Audited)
CURRENT LIABILITIES Accounts payable Advances from customers Salaries and wages payable Taxes payable Other payables Provision Accrued expenses Long-term liabilities due within one year TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Long-term loans Long-term payables TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES MINORITY INTEREST SHAREHOLDERS’ EQUITY Share capital Capital reserves Surplus reserves Including: Statutory common welfare fund Cash dividend proposed after the balance sheet date Retained earnings Translation Reserve TOTAL SHAREHOLDERS’EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY	448,920,634 370,787,928 364,000,275 1,011,895,789 644,406,195 (218,716,589) 128,924,620 218,732,157 2,968,951,009 200,000,000 288,509,756 488,509,756 3,457,460,765 27,814,575 3,074,000,000 6,559,919,179 1,154,468,484 384,875,592 799,240,000 4,515,489,118 106,778 16,103,223,559 19,588,498,899	515,892,192 458,038,528 80,241,534 784,731,685 616,637,336 (103,406,734) - 218,732,157 2,570,866,698 200,000,000 162,908,540 362,908,540 2,933,775,238 27,673,169 3,074,000,000 6,501,949,387 1,154,468,484 384,875,592 799,240,000 3,722,812,692 - 15,252,470,563 18,213,918,970	372,417,098 448,889,653 363,766,720 1,011,589,323 530,433,343 (218,716,589) 128,693,720 218,732,157 2,855,805,425 200,000,000 288,509,756 488,509,756 3,344,315,181 - 3,074,000,000 6,559,919,179 1,154,151,900 384,717,300 799,240,000 4,515,805,702 - 16,103,116,781 19,447,431,962	515,892,192 458,022,488 80,223,075 784,396,963 1,065,538,997 (103,406,734) - 218,732,157 3,019,399,138 200,000,000 162,908,540 362,908,540 3,382,307,678 - 3,074,000,000 6,501,949,387 1,154,151,900 384,717,300 799,240,000 3,723,129,276 - 15,252,470,563 18,634,778,241

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Yanzhou Coal Mining Co.,Ltd. STATEMENT OF INCOME AND PROFITS APPROPRIATION FOR THE PERIOD ENDED MARCH 31, 2005

	Unit: RMB Yuan	Unit: RMB Yuan	Unit: RMB Yuan	Unit: RMB Yuan
	3 MONTHS ENDED MARCH 31
	The Group		The Company
	2005 (Unaudited)	2004 (Unaudited)	2005 (Unaudited)	2004 (Unaudited)
Revenue from major operations Less: Cost of major operations Sales taxes and surcharges Profit from major operations Add: Profit from other operations Less: Operating expenses General and administrative expenses Financial costs Operating profit Add: Investment income Subsidy income Non-operating income Less: Non-operating expenses Total profit Less: Income taxes Minority interest Net profit Add: Retained earnings 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: Proposed dividend Retained earnings at the end of theperiod	3,453,162,112 1,214,801,222 59,003,302 2,179,357,588 13,495,421 279,331,360 718,681,055 627,565 1,194,213,029 351,525 - 132,511 529,007 1,194,168,058 401,350,226 141,406 792,676,426 3,722,812,692 4,515,489,118 - - 4,515,489,118 - 4,515,489,118	2,350,745,792 1,050,399,560 39,430,582 1,260,915,650 10,904,591 289,555,562 376,168,617 4,425,202 601,670,860 1,237,629 - 292,872 2,747,035 600,454,326 208,436,846 108,229 391,909,251 2,220,500,672 2,612,409,923 - - 2,612,409,923 - 2,612,409,923	3,453,162,112 1,214,913,829 59,003,302 2,179,244,981 12,605,459 280,027,740 697,585,179 340,176 1,213,897,345 (19,582,738) - 132,511 529,007 1,193,918,111 401,241,685 - 792,676,426 3,723,129,276 4,515,805,702 - - 4,515,805,702 - 4,515,805,702	2,350,745,792 1,050,501,221 39,430,582 1,260,813,989 9,644,273 290,500,158 374,458,573 4,435,287 601,064,244 1,653,213 - 292,872 2,746,685 600,263,644 208,354,395 - 391,909,249 2,220,752,157 2,612,661,406 - - 2,612,661,406 - 2,612,661,406

`

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Yanzhou Coal Mining Co.,Ltd. CASH FLOW STATEMENT FOR THE PERIOD ENDED MARCH 31, 2005

Unit: RMB Yuan

				Unit: RMB Yuan
		3 MONTHS END	ED MARCH 31
	The G	roup	The Co	mpany
	2005 (Unaudited)	2004 (Unaudited)	2005 (Unaudited)	2004 (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 Tax payments Cash paid relating to other operating activities Sub-total of cash outflows NET CASH FLOW FROM OPERATING ACTIVITIES 2.CASH FLOW FROM INVESTING ACTIVITIES Interest income Cash received from return on investments Net cash receipt from disposal of fixed assets and other long-term assets Decrease in restricted cash 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	4,044,386,847 - 500,967,327	2,930,005,762 163,906,225 180,424,728	4,042,559,671 - 238,575,069	2,929,164,103 163,906,225 179,370,232
	4,545,354,174	3,274,336,715	4,281,134,740	3,272,440,560
	885,309,804 466,220,683 486,820,242 715,465,837	500,012,989 251,087,134 343,401,185 1,036,972,220	883,323,968 465,654,744 485,071,210 1,249,804,927	495,438,566 250,638,104 341,959,407 1,044,413,744
	2,553,816,566	2,131,473,528	3,083,854,849	2,132,449,821
	1,991,537,608	1,142,863,187	1,197,279,891	1,139,990,739
	630,563 - 1,032,655 8,956,033	1,516,667 - 1,101,494 -	630,562 350,456 1,012,656 8,956,033	1,516,667 - 1,101,494 -
	10,619,251	2,618,161	10,949,707	2,618,161
	22,583,027 -	20,476,395 22,752,658	7,495,366 -	20,225,784 22,752,658
	22,583,027	43,229,053	7,495,366	42,978,442
	(11,963,776)	(40,610,892)	3,454,341	(40,360,281)
	- 6,064,000	- 8,736,000	- 6,064,000	- 8,736,000
	6,064,000	8,736,000	6,064,000	8,736,000
	(6,064,000)	(8,736,000)	(6,064,000)	(8,736,000)
	106,778	-	-	-
	1,973,616,610	1,093,516,295	1,194,670,232	1,090,894,458

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Yanzhou Coal Mining Co.,Ltd. CASH FLOW STATEMENT

FOR THE PERIOD ENDED MARCH 31, 2005

Unit: RMB Yuan

			Unit: RMB Yuan	Unit: RMB Yuan
SUPPLEMENTAL INFORMATION	3 MONTHS END		ED MARCH 31
	The Group		The Company
	2005 (Unaudited)	2004 (Unaudited)	2005 (Unaudited)	2004 (Unaudited)
1.RECONCILIATION OF NET PROFIT TO NET CASH FLOW FROMOPERATING ACTIVITIES Net profit Add: Minority interest Impairment losses on assets Depreciation of fixed assets Provision for Wei Jian Fei Provision for Work Safty Expense Provision for gai ge fa zhan ji jin Amortisation of intangible assets and other assets Losses on disposal of fixed assets Decrease(increase) in deferred expenses Increase in accrued expenses Financial expenses Gains(losses) arising from investment Decrease 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	792,676,426 141,406 - 241,682,257 57,969,792 48,308,160 8,141,267 77,293,056 (94,152) (3,629,405) 128,924,620 6,064,000 (351,525) (47,790,422) 413,042,437 269,159,691 1,991,537,608 7,227,208,536 5,253,591,926 1,973,616,610	391,909,251 108,229 30,256,939 243,579,490 62,294,220 - - 7,177,452 (261,007) 60,092,480 144,780,365 8,736,000 (1,237,629) 24,802,087 353,616,763 (182,991,453) 1,142,863,187 3,117,288,366 2,023,772,071 1,093,516,295	792,676,426 - - 241,324,777 57,969,792 48,308,160 8,141,267 77,293,056 (94,152) (4,346,535) 128,693,720 6,064,000 19,582,738 (56,351,215) 170,305,290 (292,287,433) 1,197,279,891 6,173,310,016 4,978,639,784 1,194,670,232	391,909,251 - 30,256,939 243,258,103 62,294,220 7,177,452 (261,007) 62,552,884 144,780,365 8,736,000 (1,653,213) 22,119,306 354,232,484 (185,412,045) 1,139,990,739 3,112,561,714 2,021,667,256 1,090,894,458

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