CStone Pharmaceuticals — Interim / Quarterly Report 2009

Aug 21, 2009

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim 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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兖州煤业股份有限公司 YANZHOU COAL MINING COMPANY LIMITED

(A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1171)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE, 2009

The Board of Directors (the “Board”) of the Company is pleased to announce the unaudited results of the Company and its subsidiaries for the period ended 30 June, 2009. This announcement, containing the full text of the 2009 Interim Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of annual results. The Company’s 2009 Interim Report will be available for viewing on the websites of The Stock Exchange of Hong Kong at www.hkexnews.hk and of the Company at www.yanzhoucoal.com.cn on or before 24 August 2009.

YANZHOU COAL MINING COMPANY LIMITED

DEFINITIONS

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

“Yanzhou Coal”, “Company” or	means	Yanzhou Coal Mining Company Limited, a joint stock limited company
“the Company”		incorporated under the laws of PRC in 1997 and the H Shares, the ADSs
		and A Shares of which are listed on the Hong Kong Stock Exchange,
		New York Stock Exchange Inc. and the Shanghai Stock Exchange,
		respectively;
“Group” or “the Group”	means	the Company and its subsidiaries;
“Yankuang Group”,	means	Yankuang Group Corporation Limited, a company established under
or “the Controlling Shareholder”		the laws of the PRC in 1996 with limited liability, being the controlling
		shareholder of the Company holding 52.86% of the total share capital of
		the Company;
“Yulin Neng Hua”	means	Yanzhou Coal Yulin Neng Hua Company Limited, a company
		incorporated under the laws of the PRC in 2004 with limited liability and
		a wholly-owned subsidiary of the Company, primarily undertakes the
		construction and operation of the 0.6 million tonnes of methanol project of
		the Company in Shaanxi province;
“Yushuwan Coal Mine Company”	means	Shaanxi Yushuwan Coal Mine Company Limited, a joint venture to be
		invested by the Company, Chia Tai Energy & Chemicals Company Limited
		and Yushen Coal Company Limited of Yulin City and primarily undertakes
		the construction and operation of Yushuwan coal mine, of which 41%
		equity interest is held by the Company;
“Heze Neng Hua”	means	Yanmei Heze Neng Hua Company Limited, a company incorporated
		under the laws of the PRC in 2004 with limited liability and a 96.67%
		owned subsidiary of the Company, primarily undertakes the development
		of the Juye coal f eld of the Company in Shandong province;
“Shanxi Neng Hua”	means	Yanzhou Coal Shanxi Neng Hua Company Limited, a company
		incorporated under the laws of the PRC in 2002 with limited liability and
		a wholly-owned subsidiary of the Company, primarily undertakes the
		management of the projects invested by the Company in Shanxi province;

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

“Tianhao Chemicals”	means	Shanxi Tianhao Chemicals Company Limited, a joint stock company
		incorporated under the laws of the PRC in 2002 and a 99.85% owned
		subsidiary of Shanxi Neng Hua, primarily undertakes the construction and
		operation of the 0.1 million tonnes methanol project of the Company in
		Shanxi province;
“Yancoal Australia Pty”	means	Yancoal Australia Pty Limited, a company incorporated under the laws of
		Australia in 2004 with limited liability and a wholly-owned subsidiary of the
		Company, primarily undertakes the management of the projects invested
		in Australia by the Company;
“Hua Ju Energy”	means	Shandong Hua Ju Energy Company Limited, a joint stock company
		incorporated under the laws of the PRC in 2002 and a non-wholly owned
		subsidiary of the Company, primarily undertakes the supply of electricity
		and heat by utilizing coal gangue and coal slurry produced from coal
		mining process. As at the reporting date, the company holds 95.14%
		equity interest in Hua Ju Energy;
“Railway Assets”	means	the railway asset specifically used for transportation of coal for the
		Company;
“H Shares”	means	overseas listed foreign invested shares in the ordinary share capital of the
		Company, with a nominal value of RMB1.00 each, which are listed on the
		Hong Kong Stock Exchange;
“ A Shares”	means	domestic shares in the ordinary share capital of the Company, with a
		nominal value of RMB1.00 each, which are listed on the Shanghai Stock
		Exchange;
“CSRC”	means	China Securities Regulatory Commission;
“CASs” or “ASBEs”	means	Accounting Standard for Business Enterprises (2006) and the relevant
		regulations and explanations issued by the Ministry of Finance of PRC;
“Hong Kong Stock Exchange”	means	The Stock Exchange of Hong Kong Limited;
“Shareholders”	means	the shareholders of the Company;
“PRC”	means	the People’s Republic of China;
“Directors”	means	the directors of the Company; and
“Supervisors”	means	the supervisors of the Company.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

YANZHOU COAL MINING COMPANY LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE, 2009

Dear Shareholders,

The board of directors (the “Board”) of Yanzhou Coal Mining Company Limited is pleased to present the unaudited interim results of the Group for the six months ended 30 June, 2009, which have been reviewed by the Audit Committee of the Board.

In the fi rst half of 2009, total net sales of the Group were RMB8,864.0 million, representing a decrease of RMB3,093.9 million or 25.9% as compared to the same period last year. Net income attributable to the equity holders of the Company for the reporting period was RMB2,025.7 million, representing a decrease of RMB1,886.9 million or 48.2%, as compared to the same period last year.

SUMMARY OF KEY FINANCIAL INFORMATION (UNAUDITED)

(Prepared in accordance with International Financial Reporting Standards (“IFRS”))

Operating Results

Operating Results
	For the six months ended 30 June For the change as year ended compared to the 31 December 2009 2008 same period 2008 (RMB’000) (RMB’000) last year(+,-) (RMB’000) (unaudited) (unaudited) % (audited)
Net sales Gross prof t Interest expenses Income before income tax Net income attributable to equity holders of the Company for the reporting period Earnings per share	8,864,029 11,957,856 -25.9 24,394,369 4,337,689 6,785,382 -36.1 12,451,493 -20,844 -15,827 31.7 -38,360 2,719,243 5,494,255 -50.5 8,865,228 2,025,690 3,912,641 -48.2 6,488,908 RMB0.41 RMB0.80 -48.2 RMB1.32

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Assets and Liabilities

Assets and Liabilities
	At 30 June At 31 December 2009 2008 2008 (RMB’000) (RMB’000) (RMB’000) (unaudited) (unaudited) (audited)
Current assets Current liabilities Total assets Equity attributable to equity holders of the Company Net asset value per share Return on net assets (%)	16,310,952 13,794,310 14,994,397 7,379,183 5,527,037 5,296,991 34,840,896 30,498,879 32,338,631 27,029,087 24,346,529 26,755,124 RMB5.50 RMB4.95 RMB5.44 7.49 16.07 24.25

SUMMARY OF CASH FLOW STATEMENT

	For the six months ended 30 June For the change as Year ended compared to the 31 December 2009 2008 same period 2008 (RMB’000) (RMB’000) last year(+/-) (RMB’000) (unaudited) (unaudited) % (audited)
Net cash from operating activities Net increase in cash and cash equivalents Net cash f ow per share generated from operating activities	3,611,481 3,861,370 -6.5 7,095,477 172,989 3,952,044 -95.6 4,082,320 RMB0.73 RMB0.79 -6.5 RMB1.44

Notes: Financial statements of Hua Ju Energy were combined into the consolidated fi nancial statements of the Group for the reporting period.

Coal used by Hua Ju Energy was supplied by the Company. Part of the electricity and heat generated by Hua Ju Energy was supplied to the Group while the rest was sold in the market. The net sales of coal sold by the Company to Hua Ju Energy was recorded as a net sale of the Company and a cost of sales of Hua Ju Energy, respectively, and was accordingly offset in preparing the consolidated fi nancial statements. Net sales of electricity and heat by Hua Ju Energy to the Company was recorded as a net sale of Hua Ju Energy and a cost of sales of the Company, respectively, and was accordingly offset in preparing the consolidated fi nancial statements.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

REVIEW OF OPERATIONS

The following discussion is based on the Group’s unaudited fi nancial results for the fi rst half of 2009 and 2008 respectively, which were prepared in accordance with IFRS.

General operation data

General operation data
Unit	For the six months change as compared to the ended 30 June same period last year Increase/ 2009 2008 decrease % change
1. Coal business Coal production Kiloton Salable coal production Kiloton Volume of Sales Kiloton Domestic Kiloton Export Kiloton 2. Railway transportation business Transportation volume Kiloton 3. Electricity business Electricity generated 10000kwh Electricity sold 10000kwh 4. Heating businessNote Heating produced 10000 steam tonne Heating sold 10000 steam tonne	17,276 18,074 -798 -4.4 17,079 17,856 -777 -4.4 17,662 18,512 -850 -4.6 16,990 17,332 -342 -2.0 672 1,180 -508 -43.1 8,565 8,497 68 0.8 60,743 — 60,743 — 60,743 — 60,743 — 80 — 80 — 80 — 80 —

Note: Due to the acquisition of Hua Ju Energy, the heating business was newly added for the reporting period.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

BUSINESS SECTION-COAL BUSINESS

COAL PRODUCTION

In the fi rst half of 2009, the coal production of the Group was 17.28 million tonnes, representing a decrease of 0.8 million tonnes or 4.4% as compared to the same period last year; and salable coal production of the Group was 17.08 million tonnes, representing a decrease of 0.78 million tonnes or 4.4% as compared to the same period last year.

The following table sets out the coal production of the Group for the six months ended 30 June, 2009, and for the six months ended 30 June, 2008:

	For the six months compared to the same ended 30 June period last year(+/-) Increase/ 2009 2008 decrease (’000 tonnes) (’000 tonnes) (’000 tonnes) (%)
1. Coal production 1) The Company 2) Shanxi Neng Hua 3) Yancoal Australia Pty 2. Salable coal production 1) The Company 2) Shanxi Neng Hua 3) Yancoal Australia Pty	17,276 18,074 -798 -4.4 16,086 16,406 -320 -2.0 474 626 -152 -24.3 716 1,042 -326 -31.3 17,079 17,856 -777 -4.4 15,975 16,309 -334 -2.0 474 626 -152 -24.3 630 921 -291 -31.6

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Coal Price and Sales

During the reporting period, due to the impacts of the global fi nancial crisis and domestic macroeconomic situation, the market demand for coal from major coal consumption industries shrank, with a decrease in domestic and global coal prices as compared with the same period last year. In the fi rst half of 2009, the Group’s average sale price per tonne of coal was RMB493.71, representing a decrease of RMB146.18 or 22.8% over the same period in 2008.

The following table sets out the sales prices of the Group’s products for the six months ended 30 June, 2009, 30 June, 2008 31 December, 2008 and for the year 2008:

	For the six months ended For the year For the six months ended 30 June 31 December ended 31 2009 2008 2008 December 2008 (RMBper tonne) (RMBper tonne) (RMBper tonne) (RMBper tonne)
I. The Company Clean Coal No. 1 Clean Coal No. 2 Clean Coal Domestic Export No. 3 Clean Coal Domestic Export Lump Coal Average Price for Clean Coal Domestic Export Screened Raw Coal Mixed Coal and Others Average Coal Price of the Company Including: Domestic II. Shanxi Neng Hua III. Yancoal Australia Pty IV. Externally purchased Coal Domestic Export V. Average Coal Price of the Group	666.10 961.50 1,203.43 1,070.96 717.20 988.51 1,114.29 1,035.11 717.20 992.92 1,114.29 1,038.10 — 394.45 — 394.45 621.14 809.41 975.65 861.85 623.23 837.81 1,007.09 888.12 603.14 398.43 785.17 592.74 639.51 859.93 1,038.63 938.33 692.86 929.14 1,079.45 984.18 694.03 940.95 1,088.54 994.71 603.14 397.59 785.17 569.47 401.12 449.34 469.18 461.80 181.87 174.67 96.68 143.70 486.78 651.02 605.54 627.67 486.23 653.67 604.13 628.20
	287.01 236.36 305.56 267.64
	834.52 672.82 1,768.72 1,029.25
	505.79 670.18 783.14 733.09 505.79 666.86 782.59 731.50 — 926.92 873.24 906.91
	493.71 639.89 640.58 640.24

Notes:

1. The sales price of coal is the invoice price less sales tax, transportation cost and various miscellaneous fees.

2. The historic average price of each type of coal product for the six months ended 31 December, 2008 was calculated based on the following formula:

(Net sales of each type of coal product for the year ended 31 December, 2008) less (Net sales of each type of coal product for the six months ended 30 June, 2008)

(Sales volume of each type of coal product for the year ended 31 December, 2008) less (Sales volume of each type of coal product for the six months ended 30 June, 2008)

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

The Group’s coal sales volume for the fi rst half of 2009 was 17.66 million tonnes, among which, 0.47 million tonnes were sold within the Group (to Hua Ju Energy) and 17.19 million tonnes were sold in the market, representing a decrease of 0.85 million tonnes or 4.6% as compared to the same period last year. The net sales of coal was RMB8,720 million, among which, the net sales of coal within the Group (to Hua Ju Energy) was RMB77.728 million and net sales of coal in the market was RMB8,642.2 million, representing a decrease of RMB3,126 million or 26.4% as compared to the same period last year.

The following table sets out the Group’s sales volume and net sales of coal (by product category) for the six months ended 30 June, 2009 and the six months ended 30 June, 2008:

	For the six months ended 30 June 2009 2008 Sales volume Net sales Sales volume Net sales of coal of coal of coal of coal (’000 tonnes) (RMB’000) (’000 tonnes) (RMB’000)
I. The Company Clean Coal No. 1 Clean Coal No. 2 Clean Coal Domestic Export No. 3 Clean Coal Domestic Export Lump Coal Subtotal of Clean Coal Domestic Export Screened Raw Coal Mixed Coal and Others Subtotal of the Company Including: Domestic 2. Shanxi Neng Hua 3. Yancoal Australia Pty 4. Externally purchased coal Domestic Export Total for the Group	314 208,770 199 190,891 4,130 2,962,246 4,678 4,623,915 4,130 2,962,246 4,643 4,610,318 0 — 35 13,597 733 455,304 1,996 1,615,739 657 409,339 1,867 1,564,326 76 45,965 129 51,413 742 474,600 651 560,226 5,919 4,100,920 7,524 6,990,771 5,843 4,054,955 7,360 6,925,761 76 45,965 164 65,010 8,688 3,484,847 6,677 3,000,109 1,559 283,577 1,566 273,572 16,166 7,869,344 15,767 10,264,452 16,090 7,823,379 15,603 10,199,442
	467 133,967 602 142,276
	596 497,558 1,001 673,937
	433 219,104 1,142 765,260 433 219,104 1,127 751,710 — — 15 13,550
	17,662 8,719,973 18,512 11,845,925

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Domestic sales of the Group’s coal products are mainly concentrated in Shandong Province and other provinces in the eastern China.

The Group’s coal products are exported primarily to Japan and South Korea in the East Asia region.

The following table sets out the Group’s net sales of coal in terms of geographical regions for the six months ended 30 June, 2009 and 2008, respectively:

	For the six months ended 30 June 2009 2008 Sales volume Net sales Sales volume Net sales of coal of coal of coal of coal (’000 tonnes) (RMB’000) (’000 tonnes) (RMB’000)
1. The Company Eastern China Shandong Province Jiangsu Province Zhejiang Province Shanghai Other Provinces in Eastern ChinaNote Southern ChinaNote Export 2. Shanxi Neng Hua 3. Yancoal Australia Pty 4. Sales of externally purchased coal 5. Total for the Group	16,166 7,869,344 15,767 10,264,452 15,652 7,649,861 15,020 9,877,519 12,962 6,224,269 13,095 8,516,561 1,250 608,616 816 522,887 385 173,052 387 215,940 702 430,589 484 419,418 353 213,335 239 202,713 438 173,518 582 321,923 76 45,965 164 65,010
	467 133,967 602 142,276
	596 497,558 1,001 673,937
	433 219,104 1,142 765,260
	17,662 8,719,973 18,512 11,845,925

Note: Other provinces in the eastern China include Anhui province, Fujian province and Jiangxi province; and the provinces in the southern China include Guangdong province, Guangxi Zhuang Autonomous Region and Hunan Province.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Most of the Group’s coal sales were made to power plants, metallurgical mills, chemical plants etc.

The following table sets out the Group’s net sales of coal by industries for the six months ended 30 June, 2009 and 2008, respectively:

	For the six months ended 30 June 2009 2008 Sales volume Net sales Sales volume Net sales of coal of coal of coal of coal (’000 tonnes) (RMB’000) (’000 tonnes) (RMB’000)
1. The Company Domestic Power plants Metallurgical mills Chemical companies Fuel trading companies/others Export Power plants Metallurgical mills 2. Shanxi Neng Hua 3. Yancoal Australia Pty 4. Sales of externally purchased coal 5. Total for the Group	16,166 7,869,344 15,767 10,264,452 16,090 7,823,379 15,603 10,199,442 6,243 2,458,125 5,766 2,419,899 1,019 555,057 1,319 1,011,749 856 572,459 3,967 3,376,477 7,972 4,237,738 4,551 3,391,317 76 45,965 164 65,010 76 45,965 129 51,413 — — 35 13,597
	467 133,967 602 142,276
	596 497,558 1,001 673,937
	433 219,104 1,142 765,260
	17,662 8,719,973 18,512 11,845,925

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

BUSINESS SECTION-RAILWAY TRANSPORTATION

In the fi rst half of 2009, the volume of coal transported by the Company’s Railway Assets was 8.57 million tonnes, representing an increase of 0.07 million tonnes or 0.8% as compared with the same period in 2008. Net income (income from transported volume settled on the basis of ex-mine price and the special purpose railways transportation fees borne by customers) from railway transportation services of the Company was RMB112.6 million in this period, representing an increase of RMB0.656 million or 0.6% as compared with the same period in 2008.

BUSINESS SECTION-COAL CHEMICAL AND ELECTRICITY BUSINESS

Shanxi Neng Hua

At the reporting date, due to the shortage of necessary raw materials (coke oven gas), the 0.1 million tonnes methanol project of Shanxi Tianhao Chemicals Co., Ltd., subsidiary of Shanxi Neng Hua, has not resumed production.

In the fi rst half of 2009, the supporting power plant for the above-mentioned project generated electricity 58,150,000 kWh, all of which was sold.

Yulin Neng Hua

At the reporting date, Yulin Neng Hua’s 0.6 million ton methanol project was still in trial operation.

In the fi rst half of 2009, the supporting power plant of the above-mentioned project generated electricity 29,080,000 kWh, all of which was sold.

Hua Ju Energy

In the fi rst half of 2009, Hua Ju Energy generated electricity 520,200,000 kWh, all of which were sold, among which 206,360,000 kWh were sold externally. Heating production generated 0.8 million steam tonnes, all of which was sold, among which 0.1 million tonnes were sold externally.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

OPERATING EXPENSES AND CONTROL OF COSTS

The total operating expenses of the Group in the fi rst half of 2009 was RMB6,366.4 million, representing a decrease of RMB228.3 million or 3.5% as compared to the same period last year, among which, (1) the cost of sales and railway transportation services decreased by RMB734.5 million, or 14.2% as compared to the same period last year; (2) the cost of sales of the new electricity business was RMB84.131 million; and (3) sales, general and administration expenses increased by RMB417.8 million or 29.4% as compared to the same period last year. Due to a larger decrease in net sales, the percentage of total operating expenses to total net sales increased to 71.8% in the reporting period from 55.1% in the same period last year.

The following table sets out the Group’s principal operating expenses, which are also expressed as a percentage of the total net sales for the six months ended 30 June, 2009 and 2008, respectively:

For the six months ended 30 June 2009 2008 2009 2008 (RMB’000) (% of total net sales of coal)

Net sales Costs of sales and costs of railway transportation services Materials Wages and employee benef ts Electricity Depreciation Land subsidence, restoration, rehabilitation and environmental costs Mining rights fees Other transportation expenses Cost of externally purchased coal Other costs Cost of sales of electricity business Cost of sales of heating business Total cost Sales, general and administrative expenses Total operating expenses

8,864,029 11,957,856 100.0 100.0 4,437,963 5,172,474 50.1 43.3 659,790 704,859 7.4 5.9 1,452,226 1,267,739 16.4 10.6 117,763 209,377 1.3 1.8 687,437 547,341 7.8 4.6 854,635 951,570 9.6 8.0 102,299 85,303 1.2 0.7 34,607 65,436 0.4 0.5 209,539 727,381 2.4 6.1 319,667 613,468 3.6 5.1 84,131 — 0.9 — 4,246 — 0.1 — 4,526,340 5,172,474 51.1 43.3 1,840,102 1,422,260 20.7 11.9 6,366,442 6,594,734 71.8 55.1

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

The following discussion and analysis should be read in conjunction with the unaudited fi nancial statements of the Group, for the six months ended 30 June, 2009, and for the six months ended 30 June, 2008, and the notes thereto.

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE, 2009 COMPARED WITH RESULTS FOR THE SIX MONTHS ENDED 30 JUNE, 2008

In the fi rst half of 2009, the net sales of the Group was RMB8,864 million, representing a decrease of RMB3,093.9 million or 25.9%, from RMB11,957.9 million over the same period in 2008. This decrease was mainly due to: (1) the drop in average sales price of coal, leading to a decrease of RMB2,360.9 million in net sales of coal; and (2) the decrease in the volume of coal sales resulted in a decrease of RMB842.8 million in the net sales of coal; and (3) the net sales of the new electricity business was RMB101.8 million, and the net sales of the new heating business was RMB7.38 million. The details of which are as follows:

For the six monthsFor the six months Percentage ended 30 June, ended 30 June, Increase/ Increase/ 2009 2008 decrease (+, -) decrease (%)	For the six monthsFor the six months Percentage ended 30 June, ended 30 June, Increase/ Increase/ 2009 2008 decrease (+, -) decrease (%)
1. Net sales of coal business (RMB million) The Company Shanxi Neng Hua Yancoal Australia Pty Externally purchased coal 2. Net revenue of railway transportation business (RMB million) 3. Net sales of electricity business (RMB million) Shanxi Neng Hua Yulin Neng Hua Hua Ju Energy 4. Net sales of heating business (RMB million) 5. Total sales (RMB million)	8,642.2 11,845.9 -3,203.7 -27.0 7,791.6 10,264.5 -2,472.9 -24.1 134 142.2 -8.2 -5.8 497.5 673.9 -176.4 -26.2 219.1 765.3 -546.2 -71.4 112.6 111.9 0.7 0.6 101.8 — 101.8 — 13.5 — 13.5 — 7.7 — 7.7 — 80.6 — 80.6 — 7.4 — 7.4 — 8,864 11,957.9 -3,093.9 -25.9

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

In the fi rst half of 2009, cost of sales of the Group was RMB4,526.4 million, representing a decrease of RMB646.1 million or 12.5%, as compared to RMB5,172.5 million over the same period in 2008. The details are as follows:

For the six months For the six months Increase or Percentage ended 30 June, ended 30 June, decrease increase or 2009 2008 (+/-) decrease (%)

1. Cost of sales of coal business (RMB million) The Company Total cost of sales (RMB million) Cost of sales per tonne (RMB) Shanxi Neng Hua Total cost of sales (RMB million) Cost of sales per tonne (RMB)Note Yancoal Australia Pty Total cost of sales (RMB million) Cost of sales per tonne (RMB) Externally purchased coalTotal cost of sales (RMB million) 2. Cost of sales of railway transportation business (RMB million) 3. Cost of sales of electricity business (RMB million) Hua Ju Energy Total cost of sales (RMB million) Cost of sales per unit (RMB/kWh) Shanxi Neng Hua Total cost of sales (RMB million) Cost of sales per unit (RMB/kWh) Yulin Neng Hua Total cost of sales (RMB million) Cost of sales per unit (RMB/kWh) 4. Cost of sales of heating business (RMB million) Hua Ju Energy Total cost of sales (RMB million) Cost of sales per unit (RMB/ steam tonne)

3,979.5 3,864.7 114.8 3.0 246.16 245.11 1.05 0.4 112.4 98 14.4 14.7 240.82 162.89 77.93 47.8 253.2 364.3 -111.1 -30.5 424.62 363.69 60.93 16.8 209.5 727.4 -517.9 -71.2 105.6 118.1 -12.5 -10.6 84.1 — 84.1 — 50.1 — 50.1 — 0.243 — — — 24.3 — 24.3 — 0.418 — — — 9.7 — 9.7 — 0.333 — — — 4.2 — 4.2 — 4.2 — 4.2 — 42.47 — — —

Notes: In the fi rst half of 2009, Shanxi Nenghua’s cost of sales per tonne of coal increased by RMB77.93, or 47.8%, mainly because the volume of sales of salable coal decreased by 140,000 tonnes or 22.4% compared to the same period in 2008 leading to an increase in the fi xed cost per unit of coal.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

In the fi rst half of 2009, the sales, general and administration expenses of the Group were RMB1,840.1 million, representing an increase of RMB417.8 million or 29.4%, from RMB1,422.3 million over the same period in 2008. This was mainly due to: (1) the coal price adjustment fund (which was previously listed as a cost of sales) was re-categorised as a sales, general and administrative expense, which resulted in an increase of RMB128.7 million in sales, general and administrative expenses as compared with the same period in the previous year; (2) as a result of the rise in employees’ salaries and price infl ation, the higher expenses for retired persons has affected the Company’s labor insurance fees, which increased by RMB91.351 million compared with the same period in the previous year; (3) the Company made provisions of RMB59.830 million for asset impairment during the reporting period; (4) an increase of RMB60.208 million in the sales, general and administrative expenses of Yancoal Australia Pty, as compared to the same period in 2008; (5) an increase in the sales, general and administrative expenses of Hua Ju Energy by RMB22.484 million.

In the fi rst half of 2009, the Company’s investment profi ts from holding shares of Huadian Zouxian Power Generation Co., Ltd. was RMB43.815 million, whereas the Company had investment losses of RMB47.192 million in the same period last year.

In the fi rst half of 2009, other operating income of the Group was RMB198.7 million, representing an increase of RMB4.533 million or 2.3%, compared to RMB194.2 million over the same period in 2008.

In the fi rst half of 2009, interest expenses of the Group was RMB20.844 million, representing an increase of RMB5.017 million or 31.7% compared to RMB15.827 million over the same period last year. This was mainly due to an increase in the expenses of the Company’s discounted notes receivables.

In the fi rst half of 2009, income before tax of the Group was RMB2,719.2 million, representing a decrease of RMB2,775.1 million or 50.5%, compared to RMB5,494.3 million over the same period last year.

In the fi rst half of 2009, net income attributable to the equity holders of the Company for the reporting period was RMB2,025.7 million, representing a decrease of RMB1,886.9 million or 48.2%, compared to RMB3,912.6 million for the same period last year.

From 31 December, 2008 to 30 June, 2009, the total assets of the Group increased from RMB32,338.6 million to RMB34,840.9 million, representing an increase of RMB2,502.3 million or 7.7%. Such increase was primarily due to the increase in the value of the Group’s assets resulting from its operating activities.

From 31 December, 2008 to 30 June, 2009, the total liabilities of the Company increased by RMB2,068.3 million or 37.5%, from RMB5,522.0 million to RMB7,590.3 million. This was mainly due to the dividend payable but not paid for the year 2008 of RMB1,967.3 million.

Equity attributable to equity holders of the Company increased from RMB26,755.1 million as at 31 December, 2008 to RMB27,029.1 million as at 30 June, 2009, representing an increase of RMB274 million or 1.0%.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

LIQUIDITY AND FINANCIAL RESOURCES

In the fi rst half of 2009, the Group’s principal source of funding was the cash fl ow received from its operations. The Company’s principal uses of the funds include payment for operating expenses, purchase of property, machinery and equipment, and purchase of equity interest in Hua Ju Energy.

In the fi rst half of 2009, the net cash fl ow received from operating activities of the Group was RMB3,611.5 million, representing a decrease of RMB249.9 million or 6.5%, as compared with RMB3,861.4 million for the same period last year.

Cash and bank deposits increased by RMB205.5 million or 2.4% to RMB8,645.1 million as at 30 June, 2009 from RMB8,439.6 million as at 31 December, 2008.

Bank guarantees increased by RMB1,858.6 million or 161.1%, to RMB3,012 million as at 30 June, 2009 from RMB1,153.4 million as at 31 December, 2008. This was mainly due to an increase in term deposits of the Group.

As at 30 June, 2009, the net balance of the Company’s notes receivables and accounts receivables was RMB2,202.8 million, representing a decrease of RMB774.5 million or 26.0% from RMB2, 977.3 million as at 31 December, 2008. Of this amount, (1) notes receivables accounted for RMB1,828 million, representing a decrease of RMB743.1 million or 28.9%, compared to RMB2,571.1 million as at 31 December, 2008; (2) accounts receivables decreased by RMB31.327 million or 7.7%, to RMB374.9 million as at 30 June, 2009 from RMB406.2 million as at 31 December, 2008.

From 31 December, 2008 to 30 June, 2009, inventories of the Company decreased by RMB168.5 million or 20.6%, from RMB819.6 million to RMB651.1 million as a result of a decrease in coal inventory.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Prepayments and other loan receivables increased by RMB127.3 million or 8.1% from RMB1,567.2 million as at 31 December, 2008, to RMB1,694.5 million as at 30 June, 2009. Such increase was mainly due to the increase in prepayments of the Group.

Goodwill increased by RMB201.6 million or 67.5%, from RMB298.7 million as at 31 December, 2008, to RMB500.3 million as at 30 June, 2009. Such increase was mainly due to the acquisition of Hua Ju Energy by the Group during this period.

Securities investment increased by RMB120.9 million or 86.4%, from RMB139.9 million as at 31 December, 2008, to RMB260.8 million as at 30 June, 2009. Such increase was mainly due to the increase in the share price of Shenergy Group Co., Ltd. (Shenergy) and Jiangsu Lianyungang Port Co., Ltd (Lianyungang), which were held by the Group.

Notes payables and accounts payables decreased by RMB166.8 million or 18.3%, from RMB910.1 million as at 31 December, 2008 to RMB743.3 million as at 30 June, 2009.

Provisions for land subsidence, restoration, rehabilitation and environmental protection increased by RMB516.4 million or 114.5%, from RMB451.0 million as at 31 December, 2008 to RMB967.4 million as at 30 June, 2009, which was mainly due to the increase of accrued but unpaid land subsidence compensation.

Taxes payable decreased by RMB133.3 million or 31.7%, from RMB419.9 million as at 31 December, 2008 to RMB286.6 million as at 30 June, 2009, mainly due to the decrease of income tax payable.

As at 30 June, 2009, the Group’s debt to equity ratio was 0.9%, which was calculated based on equity attributable to equity holders of the Company, and the total liabilities of the Company, which amounted to RMB27,029.1 million and RMB250.6 million, respectively.

During the reporting period, the Group acquired a 74% equity interest in Hua Ju Energy, utilising RMB593.2 million of its own funds.

In the fi rst half of 2009, the Group’s capital expenditure for purchase and replacement of plant, property and machinery equipment was RMB553.9 million, representing an increase of RMB16.508 million or 3.1%, as compared to RMB537.4 million in the same period last year.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

The following table sets out the Group’s capital expenditure in the fi rst half of 2009 and the estimated capital expenditure in the second half of 2009:

	2ndhalf 2009 2009 1sthalf 2009 (estimated) (estimated) (RMB million) (RMB million) (RMB million)
The Company Shanxi Neng Hua Yancoal Australia Pty Yulini Neng Hua Heze Neng Hua Hua Ju Energy Total	301.4 921.5 1,222.9 13.3 40.1 53.4 53.0 145.2 198.2 67.7 50.3 118.0 108.3 328.4 436.7 10.2 84.4 94.6 553.9 1,569.8 2,123.7

The Group believes that it will have suffi cient capital to satisfy its operational and development requirements.

TAXATION

The Company and all of its subsidiaries registered in China are subject to an income tax rate of 25% on its taxable profi ts for the reporting period. Yancoal Australia Pty and its wholly-owned subsidiary, Austar Coal Mining Pty Limited, are subject to an income tax rate of 30% on its taxable profi ts for the reporting period.

OUTLOOK FOR THE SECOND HALF OF 2009

Outlook for the Coal Market

With an increase in coal supply in China, and a pickup in demand for coal, coal price is expected to be stable. The policies implemented by the Chinese government to boost domestic demand and guarantee national economic growth have achieved effective results. The gradual recovery of China’s economy leads to an increase in demand for coal by coal consuming industries. Meanwhile, many new coal mines commenced production and the closed coal mines in Shanxi Province are reopened. The decrease in coal export volume and the increase in coal import volume will enhance coal supply in China. Despite the increase in the capacity of railway coal transportation, the structural problem of transportation will continue to restrain coal supply. There will be tight supply in certain areas, certain period or for certain type of coal products. Factors such as increased high production concentration in the coal industry, resource tax and fee reform, environment protection and energy conserving policies and the government’s limitation on over-production capacity of coal mines, will contribute to maintain coal price at a stable level with little fl uctuation. The PRC Government has suspended application for exploration rights of new coal resources, imposed more stringent safety production requirements, pushed in the consolidation of coal resource and speeded up the establishment of large coal groups to facilitate the stability of China’s coal market.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

With a low demand in the international coal market, the coal price will continue to be volatile. As a result of the fi nancial crisis, the world economy will recover in slow pace and the demand of energy will remain weak. Among the coal importing countries in Asia, coal import volume in Japan decreased, and the coal import volume of China and India increased, the coal demand and supply in the Asia-pacifi c region will remain balance. The increase in coal production capacity and improvement of port transportation capacity in Australia and the encouragement of coal export in Vietnam will enhance coal supply capacity in Asia-pacifi c region. International coal price will exhibit a volatile trend due to the change of supply-demand relationship, fl uctuation of international oil price and sea freight rate.

Outlook for the Methanol Market

As affected by the global economic crisis, in the fi rst half of 2009, the methanol market in China fl uctuated at small range and methanol price maintained at a low level. Due to the shortage of demand in downstream industries, the underutilisation of production capacity and the impact of importation of overseas methanol with low cost, it is estimated that methanol will continue to be over supplied in China and methanol price will run at a low level in the second half of 2009. The PRC government continues to accelerate implementing the plan to adjust and reinvigorate petrochemical industry, eliminate outdated methanol plant, raise methanol export rebate rate, promote fuel methanol, investigate on anti-dumping of imported methanol, as well as restrict methanol output to facilitate the steady development of the methanol market in China.

Risk factors

The reduction of resources in Shandong, fi erce competition in high quality resources and the cost rising of acquiring coal resource lead to the shortage of resource reserves increased diffi culties to acquire new coal resources.

Affected by macro-adjustment policies such as coal resource consolidation, the unpredictable changes of supply and demand in both domestic and international coal markets and coal transportation issues, coal price will fl uctuate substantially. The volatility of coal price will directly and greatly affect the operating result of the Group.

Due to the complicated relationship in project located area, improper execution of contract by contracting partners, as well as the project construction conditions and project management standard, the operation result of the investment project is rather unsatisfactory and it is diffi cult to achieve the investment targets.

The two main business sectors of the Group are coal production and coal chemicals, which belong to high risk industry with intrinsic unsafe factors.

With regards to the coal industry, the government has been increasing its emphasis on coal extraction effi ciency, safety, and environmental protection issues, and this has led to further advancements by the Group in safety production facilities, energy conservation and emission reduction. Potential reforms on resource tax and mineral resource compensation fees, an increase in expenses for the management of resettlement and destruction of villages located above coal fi elds, and land attachment compensation, in addition to wage infl ation for employees may lead to an increase in the Group’s costs.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Operating Strategies

The Company will continue to implement its operational strategies for external and internal development to continue to enhance its profi tability and shareholders’ return. In the second half of 2009, the Company will focus on the following operating strategies:

Make vigorous yet steady efforts for the development and construction of external projects, continue to seek new acquisition opportunities and improve effi ciency of utilization of its own funds. The Company will strictly implement investment decision making procedures, strengthen the management of its project investments, avoid and control investment risks and accelerate the production results of its existing projects. For the Yulin Neng Hua 0.6 million tonnes methanol project and Heze Neng Hua’s Zhaolou Coal Mine to reach full capacity. For the Heze Neng Hua’s Wanfu Coal mine to commence the construction this year; expedite the promotion of Yushuwan Coal Mine Company’s establishment and strive for commencement of its commercial operation as soon as possible. Seize opportunities for the integration of coal resources, and after taking into account technical, fi nancial conditions and operational risk, the Company will strengthen its ability for sustainable development by seeking for new overseas and domestic investment opportunities in coal and related industries to expand the scale of its coal mine assets. The Company will focus on the acquisition of equity interest in Felix Resources Ltd. in Australia. Take full advantage of the adequacy of its own funds, the Company will pay more attention to project investment, development and construction, seek new opportunities for capital operation, increase the effi ciency of utilization of its own funds to generate higher returns for Shareholders.

Improving operation management will effectively control costs and guarantee a maximum benefi t to the Company. Firstly, the Company will make constant efforts in basic safety management, and will work hard to build long-term safety production mechanisms. Secondly, the Company will stabilize the production and sales volume of the Company’s headquarter coal mines, optimise its mine production system, to expand the scale of production external coal mines. The Company will pay great attention on the resettlements of the villages located above coal fi elds and obtaining approvals for underneathriver mining. Thirdly, the Company will continue to implement the “Three Nil Project”, and improve product quality and competitiveness; and guided by market demand, the Company will implement fl exible marketing strategies, optimize product composition, user structure, distribution fl ows and mode of transportation to ensure stabilized sales volume. Lastly, with effective cost management as the core consideration, the Company will strengthen fi nancial control systems and budget management, and make efforts in energy-saving and potential synergies.

Regulate corporate operations and fulfi ll social responsibilities of the Company. The Company intends to further strengthen its internal control system, improve its internal control, its business procedures and systems, and strengthen its ability to guard against risks; to enhance corporate governance and drive an even better regulated operation. The Company will actively implement its social responsibilities, adhering to the basic principles of safety, high effi ciency, cleanliness and mutual benefi t, to realize the development of safe industry, clean development, healthy development to promote the harmonious development of the regional economy.

20

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CHANGES IN SHARE CAPITAL AND SUBSTANTIAL SHAREHOLDINGS

Changes in Share Capital during the Reporting Period

During the reporting period, the total number of shares and the capital structure of the Company remained unchanged.

As at 30 June, 2009, the share capital structure of the Company was as follows:

	Unit: share (Par value: RMB1.00 per share) Percentage of the total Number capital of of shares the Company
Domestic shares Including: shares held by the promoter (Yankuang Group) other shareholders Overseas listed H Shares Total numbers of shares	2,960,000,000 60.18% 2,600,000,000 52.86% 360,000,000 7.32% 1,958,400,000 39.82%
	4,918,400,000 100.00%

Total number of the Shareholders as at the end of the reporting period

As at 30 June, 2009, the Company had a total of 154,347 Shareholders, of which 1 was the holder of A Shares subject to trading moratorium, 154,153 were holders of A Shares without trading moratorium and 193 were holders of H Shares.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

SUBSTANTIAL SHAREHOLDERS

As at 30 June, 2009, the top ten Shareholders and the top ten Shareholders holding tradable shares without trading moratorium of the Company as recorded on the register of members of the Company were set out as follows. Such information was provided by the Shanghai Branch of China Securities Depository and Clearing Corporation Limited and Hong Kong Securities Registrars Limited.

		Number of	Percentage
		shares held as at	holding of
	Class of	the end of this	the total capital
Name of Shareholders	shares	reporting period	of the Company
		(shares)	(%)
Yankuang Group Corporation Limited
(tradable shares subject to trading moratorium)	A Shares	2,600,000,000	52.86
Shareholders holding tradable shares without trading moratorium
HKSCC Nominees Limited	H Shares	1,953,829,946	39.72
Fortune SGAM Selected Sector Fund	A Shares	5,235,851	0.11
Zhongyou Core Prime Equity Securities Investment Fund	A Shares	4,680,581	0.10
Jiashi CSI 300 Index Securities Investment Fund	A Shares	3,584,975	0.07
Bosera Yufu Securities Investment Fund	A Shares	2,226,729	0.05
Bill & Melinda Gates Foundation Trust	A Shares	2,000,074	0.04
Tianyuan Investment Fund	A Shares	1,538,184	0.03
Gong Yong	A Shares	1,411,957	0.03
Ye Liqi	A Shares	1,333,899	0.03
China Southern Shengyuan Dividend Equity Fund	A Shares	1,320,726	0.03

It is uncertain as to whether the shares held by the HKSCC Nominees Limited as disclosed above were pledged, locked-up or held under trust. None of the shares held by other Shareholders were pledged, locked up or held under trust during the reporting period.

Save as disclosed above, any related party or concert party relationships among the Shareholders are unknown.

As the clearing and settlement agent for the Company’s H Shares, HKSCC Nominees Limited held the Company’s H Shares in the capacity of a nominee.

22

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

SUBSTANTIAL SHAREHOLDERS

Save as disclosed below, as at 30 June, 2009, no other person (other than a director, supervisor or chief executive offi cer of the Company) had an interest or a short position in the shares and underlying shares of the Company as recorded in the register required to be kept under section 336 of the Securities and Futures Ordinance (the “SFO”).

					Percentage in	Percentage
					the relevant	in the total
Name of					class of share	share capital
substantial	Class of			Type of	capital of the	of the
shareholders	shares	Number of shares held	Capacity	interest	Company	Company
Yankuang	Domestic	2,600,000,000(L)	Benef cial owner	Corporate	87.84%(L)	52.86%(L)
Group	Shares
Templeton Asset	H Shares	137,352,000(L)	Investment	Corporate	7.01%(L)	2.79%(L)
Management			manager
Ltd.
UBS AG	H Shares	113,950,580(L)	Benef cial	Corporate	5.82%(L)	2.32%(L)
		25,287,089(S)	owner, person		1.29%(S)	0.51%(S)
		(Note 2)	having a security
			interest in
			shares, Interests
			of controlled
			corporations
AllianceBernstein	H Shares	99,524,000(L)	Investment	Corporate	5.08%(L)	2.02%(L)
L.P.		(Note 3)	manager and
			Interests of
			controlled
			corporations
JP Morgan	H Shares	98,505,251(L)	Benef cial owner,	Corporate	5.03%(L)	2.00%(L)
Chase & Co.		1,370,000(S)	Investment		0.07%(S)	0.03%(S)
		85,414,785(P)	manager and		4.36%(P)	1.74%(P)
		(Note 4)	Custodian
			corporation/
			Approved
			lending agent

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Notes:

1. The letter “L” denotes a long position. The letter “S” denotes a short position. The letter “P” denotes interests in a lending pool.

2. The long positions in H Shares included 103,726,140 H Shares held as benefi cial owner, 3,530,800 H Shares held as person having a security interest in shares and 6,693,640 H Shares held as interests of controlled corporations.

3. Among the aggregate interests of long position in H Shares, 26,747,020 H Shares were held as derivatives.

4. The short position in H Shares included 19,834,089 H Shares held as benefi cial owner and 5,453,000 H Shares held as interests of controlled corporations.

5. Among the aggregate interests of short position in H Shares, 18,364,089 H Shares were held as derivatives.

6. The long positions in H Shares included 96,302,000 H Shares held as investment manager and 3,222,000 H Shares held as interests of controlled corporations.

7. The long positions in H Shares included 11,220,466 H Shares held as benefi cial owner, 1,870,000 H Shares held as investment manager and 85,414,785 H Shares held as custodian corporation/approved lending agent.

8. The short positions in H Shares were held as benefi cial owner, among which 1,370,000 H Shares were held as derivatives.

Pursuant to the PRC Securities Law and section 336 of the SFO, save as disclosed above, no other Shareholder was recorded in the register as at 30 June, 2009 as having an interest of 5% or more of the Company’s issued shares.

During the reporting period, the Company’s controlling Shareholder or its actual controller remained unchanged.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

SHAREHOLDINGS OF DIRECTORS, SUPERVISORS AND GENERAL MANAGERS OF THE COMPANY

Save as disclosed below, as at 30 June, 2009, none of the Directors, Supervisors or general managers of the Company had any interests or short positions in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) (i) as recorded in the register required to be kept under section 352 of the SFO; or (ii) as otherwise notifi ed to the Company and Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Companies (which shall be deemed to apply to the Company’s Supervisors to the same extent as it applies to the Company’s Directors).

			Number of	Number of
		domestic shares		domestic
			held at the	shares held at
		beginning of the		the end of the	Reasons
Name	Status	Title as at 30 June 2009	reporting period	reporting period	for change
			(shares)	(shares)
Wang Xin	–	Chairman of the Board	0	0	–
Geng Jiahuai	–	Vice Chairman of the Board	0	0	–
Yang Deyu	Benef cial owner	Vice Chairman of the Board and	20,000	20,000	–
		General Manager
Shi Xuerang	–	Director	0	0	–
Chen Changchun	–	Director	0	0	–
Wu Yuxiang	Benef cial owner	Director and Chief Financial Off cer	20,000	20,000	–
Wang Xinkun	–	Director and Vice General Manager	0	0	–
Zhang Baocai	–	Director and Secretary of the Board	0	0	–
Dong Yunqing	–	Director	0	0	–
Pu Hongjiu	–	Independent Non-executive Director	0	0	–
Zhai Xigui	–	Independent Non-executive Director	0	0	–
Li Weian	–	Independent Non-executive Director	0	0	–
Wang Junyan	–	Independent Non-executive Director	0	0	–
Song Guo	Benef cial owner	Chairman of the Supervisor Committee	1,800	1,800	–
Zhou Shoucheng	–	Vice Chairman of the Supervisor Committee	0	0
Zhang Shengdong	–	Supervisor	0	0	–
Zhen Ailan	–	Supervisor	0	0	–
Wei Huanmin	–	Employee Representative Supervisor	0	0	–
Xu Bentai	–	Employee Representative Supervisor	0	0	–

All the interests disclosed above represent long position in the shares of the Company.

As at 30 June, 2009, the total number of A Shares held by the Directors, Supervisors and general managers of the Company was 41,800 shares, representing 0.0009% of the total share capital of the Company.

As at 30 June, 2009, none of the Directors, Supervisors or general managers of the Company nor their spouses or children under the age of 18 was given the right to acquire shares or debentures of the Company or any associated corporation.

25

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

DISCLOSURE OF SIGNIFICANT EVENTS

Final Dividends Distribution for Year 2008

At the 2008 annual general meeting of the Company held on 26 June, 2009, the Shareholders approved the fi nal dividends of RMB1,967.36 million (tax inclusive), equivalent to a distribution of RMB0.40 (tax inclusive) per share to the Shareholders.

As at the reporting date, the 2008 fi nal cash dividends had been paid to the Shareholders.

Interim Dividends Distribution

There will be no payment of interim dividend or issue of bonus shares for the fi rst half-year of 2009.

Appointment of the Company’s General Manager

Reaching the age of retirement, Mr. Yang Deyu, the former general manager of the Company, tendered a letter of resignation to the board of directors on 23 July, 2009, to resign from the position of general manager.

At the seventh meeting of the fourth session of the board of directors held on 24 July, 2009, the Company approved the resignation of Mr. Yang Deyu from the position of general manager, and appointed Mr. Li Weimin as the Company’s general manager. Please refer to the Company’s announcement of the seventh meeting of the fourth session of the Board dated 24 July, 2009 posted on the websites of both the Hong Kong Stock Exchange and the Company for Mr. Li Weimin’s resume.

Amendments to the Articles of Association of the Company

As approved by the 2008 annual general meeting of the Company held on 26 June, 2009, the Company amended the terms of its articles of association relating to its business license registration number, dividend distribution and adoption of electronic communication with Shareholders. For details of the amendments to the articles of association, please refer to the announcement of the proposed amendments to the articles of association of the Company, posted on the websites of the Hong Kong Stock Exchange and the Company on 26 June, 2009, and also refer to the circular dated 24 April, 2009, relating to amendments to the Company’s articles of association and general mandate for the repurchase of H Shares.

26

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Acquisition of shares of Hua Ju Energy

As approved at the second extraordinary shareholders’ meeting of 2008 held on 23 December, 2008, the Company acquired (using its own funds) 74% equity interest in Hua Ju Energy held by Yankuang Group for a consideration of RMB593.2431 million, and on 18 February, 2009, the Company completed the above-mentioned share ownership transfer procedures.

As approved at the seventh meeting of the fourth session of the Board held on 24 July, 2009, the Company acquired, using RMB116.3021 million of its own funds, a 14.21% equity interest in Hua Ju Energy held by Shandong Chuangye Investment Development Company. As approved at a meeting of general managers held on 24 July, 2009, the Company acquired using RMB56.4216 million and RMB0.2835 million of its own funds, a 6.9% equity interest and a 0.03% equity interest in Hua Ju Energy held by Jining Shengdi Investment Management Company Limited and Ms. Wu Zenghua, respectively. On 29 July, 2009, the Company completed the relevant share ownership transfer procedures. After the above-mentioned acquisition, the percentage of equity interest in Hua Ju Energy held by Yanzhou Coal increased to 95.14%, while Shandong Honghe Mining Group Co., Ltd. continues to hold a 4.86% equity interest in Hua Ju Energy.

The acquisitions, and the establishment of the electricity business management platform, will reduce connected transactions, speed up business restructuring, optimize the distribution of resources and improve overall economic performance.

For details of the transactions, please refer to the connected transaction announcements relating to the Connected Transaction-Acquisition of 74% Equity Interest in Hua Ju Energy, and the Connected Transaction-Acquisition of 14.21% Equity Interest in Hua Ju Energy, posted on the websites of the Hong Kong Stock Exchange and the Company on 24 October, 2008 and 26 July, 2009, respectively, and refer to the circular relating to the Acquisition of 74% Equity Interest in Hua Ju Energy held by Yankuang Group dated 7 November, 2008.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Acquisition of Equity Interest of Felix Resources Ltd (Felix)

After the approval by the eighth meeting of the fourth session of the Board, the Company announced on 13 August, 2009, that a binding scheme implementation agreement was entered into with Felix, a corporation incorporated in Australia. The total scheme consideration for the transaction will be approximately AUD3,333 million (equivalent to approximately HKD21,538 million or approximately RMB18,951 million) with AUD16.95 per share. The transaction is conditional upon the fulfi llment or waiver of a number of conditions, including but not limited to the following: (1) the Company and Felix shareholders approving the scheme by the necessary majorities; (2) the Company having obtained all necessary PRC legal and regulatory approvals; and (3) the Company having obtained all necessary legal and regulatory approvals from the Australian Foreign Investment Review Commission, the Australian Treasurer or other regulatory authorities of the Australian Government, and the Federal Court of Australia. The Company shall pay the scheme consideration within 10 working days upon obtaining the approval of the scheme implementation agreement from the Federal Court of Australia.

Felix is a company incorporated under the laws of Australia whose shares are listed on ASX. The principal activities of Felix are exploring and extracting coal resources and operating resource related projects that primarily focus on coal in Queensland and New South Wales, including four major operating mines (Ashton underground coal mine, Ashton open-cut coal mine, Minerva open-cut coal mine and Yarrabee open-cut coal mine), two coal mines under construction (Moolarben open-cut coal mine and Moolarben underground coal mine), three exploration programs and a 15.46% equity interest in a new coal port in Newcastle. As at 31 December, 2008, the total reserves of Felix was approximately 2.006 billion tonnes, the proven and probable reserves was 509.6 million tonnes; 1.375 billion tonnes of the total reserves and 386 million tonnes of the proven and probable reserves are attributable to Felix equity holders. For the fi scal year ended 30 June, 2008 (from July, 2007 to June, 2008), the operating income of Felix was AUD441 million, the net profi t was AUD188 million, and based on the shareholding interest accounting method, coal sales volume was 4.61 million tonnes. Moolarben Coal Mine is the primary asset of Felix, with Felix holding an 80% interest in it. The annual production capacity of the Moolarben open-cut mine is expected to reach 10 million tonnes and, capacity of Moolarben underground mine is expected to reach 3.5 million tonnes. Based on the project implementation schedule, and the assessment by technical experts, the open-cut and underground mines will be put into operation in March, 2010 and in 2013 respectively, reaching its capacity targets year by year.

For detailed information, please refer to the announcement “ Major Transaction – acquisition of 100% of the issued share capital in Felix Resources Limited by way of a scheme of arrangement and Resumption of Trading ” posted on the websites of the Stock Exchange of Hong Kong Limited and the Company on 13 August, 2009.

Material Litigation and Arbitration

During the reporting period, the Company was not involved in any signifi cant litigation or arbitration.

Material Contracts

Save as the disclosed in the section headed “Disclosure of Signifi cant Events”, the Company has not been a party to any material contracts during the reporting period.

28

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CORPORATE GOVERNANCE

Since the listing of the Company, in accordance with PRC Company Law, Securities Law and other laws and regulations, and the listing rules published by CSRC, and other regulatory requirements, the Group has set up a relatively regulated, stable and established corporate governance system and has abided by the corporate governance principles of transparency, accountability and protection of the rights and interests of all Shareholders. There is no signifi cant difference between the corporate governance system and the requirements in relevant documents dispatched by CSRC.

The Company has closely monitored the securities market standards and rule of law, and has actively improved its corporate governance.

During the reporting period, in accordance with regulations of its place of listing, the Company has further improved its internal control systems. At the sixth meeting of the forth session of the Board held on 24 April, 2009, the Board made an assessment on the effectiveness of its internal control systems and appointed Grant Thornton Certifi ed Public Accountants Ltd. to make an external assessment on the internal control of the Company. The assessment result was there was a signifi cant defect in the Company’s internal control system as draft consolidated fi nancial statements of the Company as at 31 December, 2008 contained some misstatements and defi ciencies in disclosure. The management duly corrected these mistakes and defi ciencies, which were refl ected in the fi nancial statements. The Company has adopted the following improvement measures:

1. Enhance training program for fi nancial staff, especially training on IFRS; employ professionals with relevant fi nancial experience; and

2. Further improve the fi nancial accounting policies and procedures, to prevent repeated misstatements and defi ciencies in disclosure.

CONNECTED TRANSACTIONS

Details of the connected transactions for the fi rst half of 2009 are set out in note 25 to the fi nancial statements prepared in accordance with the IFRS.

BORROWINGS

Details of the borrowings are set out in Note VIII.20 and Note VIII.29 to the fi nancial statements prepared in accordance with the PRC CASs.

PLEDGE OF ASSETS

The Company has not pledged its assets within the reporting period.

29

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONTINGENT LIABILITIES

The Company has no contingent liabilities within the reporting period.

PURCHASE, SALE OR REDEMPTION OF SHARES OF THE COMPANY

During the reporting period, the Company and its subsidiaries did not purchase, sell or redeem any of the shares of the Company.

COMPLIANCE WITH MODEL CODE

Having made specifi c enquiry to all Directors of the Company, during the reporting period, the Directors and the Supervisors have strictly complied with the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) set out in Appendix 10 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Listing Rules”). The Company has adopted a code of conduct regarding securities transactions of the Directors on terms no less than the required standard set out in the Model Code.

COMPLIANCE WITH CODE ON CORPORATE GOVERNANCE PRACTICES

During the reporting period, the Company has complied with the code provisions in the Code on Corporate Governance Practices set out in Appendix 14 to the Listing Rules (the “Code Provision”).

There is no signifi cant difference between the compliance with the Code Provision by the Company during the reporting period and that disclosed in the Company’s 2008 annual report.

IMPACT OF FLUCTUATIONS IN EXCHANGE RATES ON THE COMPANY

China implements a managed fl oating exchange rate regime based on market supply and demand with reference to a basket of currencies.

The impact of this fl oating exchange rate to the Group is mainly refl ected in (a) the resulting impact in overseas sales income of coal, which are calculated in US dollar and Australian dollar; (b) the gains or losses arising from the exchange rate of foreign currency deposits; and (c) impact on the Group’s import costs of equipment and fi ttings.

In order to manage foreign currencies risks in respect of anticipated sales income, Yancoal Austar, the subsidiary of the Group in Australia, entered into an Australian dollar to US dollar foreign exchange hedging contract with a bank. As at the end of the reporting period, the derivative fi nancial liabilities from this was RMB66.84 million.

Save as disclosed above, the Group has no plans to make hedging arrangements for the exchange rates of RMBto foreign currencies.

30

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

EMPLOYEES

As at 30 June, 2009, the Company had 49,888 employees in total, of whom 3,057 were management personnel, 1,800 were technicians, 34,496 were directly involved in coal production and 10,535 were supporting staff.

As at 30 June, 2009, the total salaries and allowances paid to the employees of the Company was RMB1.2241 billion.

REMUNERATION POLICY

The remuneration for the Directors, Supervisors and senior management of the Company shall be proposed by the Remuneration Committee to the Board. The remuneration for the Directors and the Supervisors of the Company must be approved at the Shareholders’ general meeting after being considered and approved by the Board; while the remuneration for senior management must be reviewed and approved by the Board.

The Company adopts a combined annual remuneration and risk control system for assessing and rewarding the Directors and senior management of the Company. The annual remuneration consists of a basic salary and benefi t income: basic salary is determined according to the operational scale of the Company with reference to the market wages and the income of employees, whereas the benefi t income is determined by the actual operational achievement of the Company. The annual remuneration for the directors and senior management of the Company are paid on a monthly basis and are confi rmed after the performance review carried out in the following year.

The remuneration policy of the other employees of the Company is principally based on a position and skill remuneration system, which determines the remuneration of the employees on the basis of their positions and responsibilities and their quantifi ed assessment results. Their rewards are linked to the Company’s overall economic effi ciency.

AUDITORS

During the reporting period, the Company has engaged Shine Wing Certifi ed Public Accountants Ltd. (Certifi ed Public Accountants in the PRC (excluding Hong Kong)) and Grant Thornton (Certifi ed Public Accountants in Hong Kong) as its international and domestic auditors, respectively.

Save as disclosed above, there was no material difference between the information of the Group recorded in Paragraph 32, Appendix 16 to the Listing Rules and the information disclosed in the Company’s 2008 annual report.

31

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Use of Funds and Guarantees by the Company

As at 30 June, 2009, no external guarantees have been made by the Company, and the Company’s controlling shareholders or subsidiaries have not used the Company’s funds for non-operating items.

The above information concerning the use of funds and external guarantees by the Company constitutes a disclosure required under the relevant laws of China (excluding Hong Kong).

Securities Investment

As at 30 June, 2009, the external equity investments made by the Company are set out as follows:

Code of Brief Name No. Stock of Stock	Initial Book value Number of investment Accounting on 30 June current shares held percentage cost subject 2009 income (shares) (RMB) (RMB) (RMB)
1 600642 Shenergy 2 601008 Lianyungang Total	22,323,900 0.77% 60,420,274 available-for-sale 220,113,654 0 f nancial assets (AFS) 1,380,000 0.26% 1,760,419 available-for-sale 10,060,200 0 f nancial assets (AFS)
	62,180,693 230,173,854 0

Source of Shenergy shares: Agreement for the transfer of public corporate shares in 2002 and bonus issue shares in 2004.

Source of Lianyungang shares: subscription to promoter's shares and bonus issue shares in 2007.

Save as disclosed above, the Company has made no other external equity investment as at the reporting date.

The above information regarding equity investment is made pursuant to the disclosure requirements under the relevant laws of China (excluding Hong Kong).

32

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Performance of the Special Undertakings relating to the Share Reform

On 31 March, 2006, the Company implemented the share reform plan. The special undertakings made by Yankuang Group and their performance are set out as follows:

Name of
Shareholder	Special undertakings		Performance of undertakings
Yankuang	(1)	The formerly non-tradable shares of the Company held by	The formerly non-tradable shares in
Group		Yankuang Group should not be listed for trading	the Company held by Yankuang
		purpose within forty-eight months from the date of	Group have not been traded.
		execution of the relevant share reform plan;
	(2)	In 2006, Yankuang Group would transfer part of its	In 2006, Yankuang Group
		operations and new projects relating to coal and	completed the transfer of the
		power which are in line with the Company’s	coal project and new electricity
		development strategies to the Company, in accordance	project to the Company, which
		with the relevant PRC regulations, with a view to	are in line with the Company’s
		enhancing the operating results of the Company and	development strategies.
		reducing connected transactions and competition	Yankuang Group is in the process
		between Yankuang Group and the Company. Yankuang	of implementing its other
		Group should allow the Company to participate and	undertakings and there has not
		invest in, for the purpose of co-development of the	been material progress in this
		coal liquefaction project, which is being developed by	respect.
		Yankuang Group.
	(3)	All the relative expenses incurred for execution of the share	The undertaking has already been
		reform plan would be borne by Yankuang Group.	performed.

The above information regarding the share reform undertakings and the performance of the undertakings by Yankuang Group constitutes a disclosure required under the relevant laws of China (excluding Hong Kong).

33

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

Entrusted Loan

Entrusted loans occurred during the reporting period and that occurred in the previous reporting period and continued in the reporting period are set out in the following table.

						Whether		Accumulated
						there is a	Whether	interest
		Amount of		Interest		provision	principal	income during
		Entrusted		per		for	has been	the reporting
No.	Borrower	Loan	Term of Loan	annum	Approval Process	devaluation	recovered	period
1	Yanmei	US$90	From 7 November, 2005	3.09%-	Reviewed and approved at a	No	Recovered	US$
	Australia Pty	million	to 7 November, 2010	4.67%	board meeting held on 28		US$ 24.5	1,243,794.04
	Limited				June, 2005.		million
					Reviewed and approved
					extension of repayment
					date for one year at a
					board meeting held on 17
					August, 2007. Reviewed
					and approved extension
					of repayment date for two
					years at a board meeting
					held on 24 October, 2008.
2	Yanzhou	RMB500	From 17 May, 2007 to	6.57%	Reviewed and approved at a	No	No	RMB
	Coal Yulin	million	17 May, 2010		board meeting held on 25			8,212,500
	Neng Hua		Accumulatively withdrew		October, 2006
	Company		RMB500 million in 10
	Limited		times
3	Yanmei Heze	RMB500	From 11 April, 2008 to	7.2%	Reviewed and approved at	No	No	RMB
	Neng Hua	million	22 November, 2012		a work meeting of general			18,200,000
	Company				managers held on 27 July,
	Limited				2007
4	Shanxi Tianhao	RMB190	From 28 March, 2008 to	7.2%	Reviewed and approved at	No	No	RMB
	Chemicals	million	22 November, 2012.		a work meeting of general			3,544,000
	Company		Accumulatively withdrew		managers held on 27 July,
	Limited		RMB120 million in 5		2007
			times
5	Yanzhou	RMB1,500	From 15 October, 2007	7.2%	Reviewed and approved at a	No	No	RMB
	Coal Yulin	million	to 15 October, 2012.		board meeting of general			26,140,000
	Neng Hua		Accumulatively withdrew		managers held on 17
	Company		RMB1,500 million in 29		August, 2007.
	Limited		times
6	Shanxi Heshun	RMB50	From 24 December,	7.47%	Reviewed and approved at	No	No	RMB
	Tianchi	million	2007 to 24 December,		a work meeting of general			1,888,250
	Energy		2010		managers held on 5
	Company				November, 2007
	Limited
7	Yanmei Heze	RMB850	From 11 April, 2008 to	7.74%	Reviewed and approved at	No	No	RMB
	Neng Hua	million	25 February, 2013.		a work meeting of general			29,885,000
	Company		Accumulatively withdrew		managers held on 14
	Limited		RMB850 million in 6		January, 2008
			times
8	Shanxi Heshun	RMB80	From 15 October, 2008	7.56%	Reviewed and approved at	No	No	RMB3,032,400
	Tianchi	million	to 15 October, 2010.		a work meeting of general
	Energy		Accumulatively withdrew		managers held on 21
	Company		RMB80 million in 5 times		August, 2008
	Limited

34

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

						Whether		Accumulated
						there is a	Whether	interest
		Amount of		Interest		provision	principal	income during
		Entrusted		per		for	has been	the reporting
No.	Borrower	Loan	Term of Loan	annum	Approval Process	devaluation	recovered	period
9	Shanxi Heshun	RMB20	From 30 December,	5.67%	Reviewed and approved at	No	No	RMB544,950
	Tianchi	million	2008 to 30 December,		a work meeting of general
	Energy		2010.		managers held on 15
	Company				December, 2008
	Limited
10	Yanmei Heze	RMB529	From 24 June, 2009 to	5.76%	Reviewed and approved at	No	No	—
	Neng Hua	million	27 February, 2014.		a work meeting of general
	Company		Withdrew RMB100		managers held on 23
	Limited		million.		February, 2009.
11	Shandong Hua	RMB200	From 16 March, 2009 to	5.40%	Reviewed and approved at	No	Recovered	RMB
	Ju Energy	million	16 March, 2012.		a work meeting of general		RMB80	2,370,000
	Company				managers held on 23		million
	Limited				February, 2009.
12	Yanzhou	RMB130	From 16 April, 2009 to	5.40%	Reviewed and approved at	No	No	—
	Coal Yulin	million	16 March, 2012.		a work meeting of general
	Neng Hua		Accumulatively withdrew		managers held on 23
	Company		RMB105 million in 5		March, 2009
	Limited		times
13	Shanxi Heshun	RMB20	From 17 April, 2009 to	5.31%	Reviewed and approved at	No	No	RMB
	Tianchi	million	13 April, 2010.		a work meeting of general			191,750
	Energy				managers held on 7 April,
	Company				2009
	Limited

35

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

At a work meeting of general managers held on 22 January, 2007, Shanxi Neng Hua was approved to grant an entrusted loan of RMB200 million to Tianhao Chemicals. Details are set out in the following table:

						Whether		Accumulated
				Interest		there is a	Whether	interest
		Amount of		rate		provision	principal	income during
		Entrusted		per		for	has been	the reporting
No.	Borrower	Loan	Term of Loan	annum	Approval Process	devaluation	recovered	period
1	Shanxi Tianhao	RMB	From 29 March, 2007 to	6.48%	Reviewed and approved	No	No	—
	Chemicals	200 million	28 March, 2012.		at the work meeting of
	Company		Accumulatively withdrew		general managers held on
	Limited		RMB200 million in 3		22 January, 2007
			times.

During the reporting period, the Company did not record other entrusted loans. Save as disclosed above, the Company has no other entrusted loans plan.

The above information regarding entrusted loans is made pursuant to the disclosure requirements under the relevant PRC laws (excluding Hong Kong).

Explanatory statement on changes in accounting estimate

The fi xed assets of the Group with a life of 5-40 years were originally valued at RMB15,940 million with a net scrap value rate of 3%. At the ninth meeting of the fourth session of Board held on 21 August, 2009, the Board has approved to change the net scrap value rate of the above fi xed assets to 0% effective from 1 April, 2009. The change in accounting estimate was mainly due to (1) the raising of national safety standards such that certain production equipment would be phased out for production; and (2) the low or nil gain arising from disposal of underground assets and certain buildings. The adjustment to the net scrap value rate of fi xed assets complied with the prudent principle of accounting policies and refl ected the position of the Company with more accuracy.

The change in accounting estimates during the reporting period resulted in a decrease of profi t of RMB101.061 million, a decrease of enterprise income tax expense of RMB25.265 million, a decrease of net profi t of RMB75.795 million, and a decrease of net value of fi xed assets as at 30 June, 2009 of RMB101.061 million.

Forecast on the operating results of the Group for the fi rst 3 quarters of 2009

In accordance with relevant regulations of China Securities Regulatory Commission and Shanghai Stock Exchange relating to preparation of periodic reports, in respect of the interim report for the fi rst half of 2009 prepared under PRC CASs published domestically, the Company is required to disclose the estimated operating results of the Group for the fi rst 3 quarters of 2009.

Due to the impact of global fi nancial crisis and the domestic macro economic conditions situation, it is estimated that the net profi t of the Group attributable to the equity holders of the Company for the fi rst 3 quarters of 2009 will decrease over 55% as compared with the corresponding period in 2008. Net profi t of the Group attributable to the equity holders of the Company for the fi rst 3 quarters of 2008 was RMB6,645.8 million.

36

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

DOCUMENTS AVAILABLE FOR INSPECTION

The following documents are available for inspection in the offi ce of the secretary to the Board at 298 Fushan South Road, Zoucheng, Shandong Province, the PRC:

• the full text of the interim report of the Company for the six months ended 30 June, 2009 signed by the Chairman;

• fi nancial statements of the Company with corporate seal affi xed and signed by corporate representative, person responsible for accounting work and responsible person of the accounting department;

• all documents published during the reporting period in newspapers designated by the China Securities Regulatory Commission;

• the Articles of Association of the Company;

• the full text of the interim report released in other stock markets.

On behalf of the Board Wang Xin Chairman

Zoucheng, PRC, 21 August, 2009

37

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED BALANCE SHEET

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ASSET NOTES	30 June 2009 31 Dec 2008
CURRENT ASSET: Cash at bank and on hand VIII.1 Tradable f nancial assets VIII.2 Notes receivable VIII.3 Accounts receivable VIII.4 Prepayments VIII.5 Intersts receivable Dividends receivable Other receveiables VIII.6 Inventories VIII.7 Non-current assets due within one year Other current assets VIII.8 TOTAL CURRENT ASSETS NON CURRENT ASSETS: Available-for-sale f nancial assets VIII.9 Entrust loan Long-term accounts receivable Long-term equity investments VIII.10 Investment real estate Fixed assets VIII.11 Construction in progress VIII.12 Construction materials VIII.13 Disposal of f xed assets Intangible assets VIII.14 Development expenditure Goodwill VIII.15 Long-term deferred expenses VIII.16 Deferred tax assets VIII.17 Other non-current assets VIII.18 TOTAL NON-CURRENT ASSETS TOTAL ASSETS	11,770,791,560 9,695,144,137 66,839,882 – 1,984,106,343 2,772,082,922 394,862,504 412,611,060 224,324,580 110,278,731 – 988,500 – – 305,813,219 397,635,013 651,101,008 823,210,170 – 1,151,895,418 1,177,141,324
	16,549,734,514 15,389,091,857
	230,173,854 139,447,161 – – – – 904,632,227 860,817,661 – – 8,952,872,361 9,334,232,206 5,109,670,167 4,827,326,277 37,518,718 25,997,048 (156,962) – 1,592,178,213 1,605,932,865 – – 10,045,361 10,045,361 17,478,011 18,730,271 695,198,798 535,448,089 117,950,940 117,925,900
	17,667,561,688 17,475,902,839
	34,217,296,202 32,864,994,696

The accompanying notes form an integral part of these fi nancial statements.

Page 38 to Page 137 of the fi niancial statement were signed by:

Head of the Company: Wang Xin

Chief Financial Offi cer: Wu Yuxing

Head of Accounting Department: Zhao Qingchun

38

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED BALANCE SHEET – CONTINUED

Prepared by: Yanzhou Coal Mining Company Limited

Prepared by: Yanzhou Coal Mining Company Limited ASSET NOTES	Unit: RMB 30 June 2009 31 Dec 2008
CURRENT LIABILITIES: Short-term borrowings VIII.20 Tradable f nancial liabilities VIII.2 Notes payable VIII.21 Accounts payable VIII.22 Advances from customers VIII.23 Salaries and wages payable VIII.24 Taxes payable VIII.25 Interest payable Dividends payable VIII.26 Other payables VIII.27 Non-current liabilities due within one year VIII.28 Other current liabilities VIII.8 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES: Long-term borrowings VIII.29 Bonds payable Long-term payable VIII.30 Deferred tax liabilities Other non-current liabilities TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS’ EQUITY: Share capital VIII.31 Capital reserves VIII.32 Surplus reserves VIII.33 Special reserves VIII.34 Retained earnings VIII.35 Translation reserves Equity attributable to shareholders of the Company Minority interest VIII.36 TOTAL SHAREHOLDERS’ EQUITY TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	– 120,000,000 29,434,968 79,220,742 175,662,080 709,872,366 853,641,767 869,085,938 795,653,798 432,813,092 460,276,951 467,146,716 732,225,807 3,646,835 1,312,705 1,967,360,000 – 1,943,335,962 2,198,497,459 94,648,464 94,648,464 967,364,952 450,978,948
	7,534,495,067 5,912,332,947
	165,000,000 176,000,000 – – 12,031,276 12,031,276 – – –
	177,031,276 188,031,276
	7,711,526,343 6,100,364,223
	4,918,400,000 4,918,400,000 4,599,680,954 5,066,355,339 2,820,975,750 2,820,975,750 1,366,386,628 1,164,283,864 12,611,677,883 12,710,055,378 (26,105,656) (115,168,599)
	26,291,015,559 26,564,901,732
	214,754,300 199,728,741
	26,505,769,859 26,764,630,473
	34,217,296,202 32,864,994,696

The accompanying notes form an integral part of these fi nancial statements.

39

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED INCOME STATEMENT

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM NOTES	For the period ended For the period ended 30 June 2009 30 June 2008
1. TOTAL OPERATING REVENUE Including: operating revenue VIII.37 2. TOTAL OPERATING COST Including: Operating cost VIII.37 Operating taxes and surcharges VIII.38 Selling expense General and administrative expenses Financial expenses VIII.39 Impairment loss of assets VIII.40 Add: Gain on fair value change (The loss is listed beginning with “-”) Investment income (The loss is listed beginning with “-”) VIII.41 prof t on exchange (The loss is listed beginning with “-”) 3. Operating prof t (The loss is listed beginning with “-”) Add: Non-operating revenue VIII.42 Less: Non-operating expenditures VIII.43 Including: Losses on disposal of non-current assets 4. Total prof t (The total loss is listed beginning with “-”) Less: Income tax VIII.44 5. Net prof t (The net loss is listed beginning with “-”) Net prof t attributed to shareholders of the Company Minority interest 6. Earnings per share (1) Earnings per share, basis VIII.45 (2) Earnings per share, diluted VIII.45 7. Other comprehensive gains VIII.46 8. Total comprehensive gains Comprehensive gains attributed to shareholders of the Company Minority interest	9,663,874,893 12,913,709,000 9,663,874,893 12,913,709,000
	7,111,058,527 7,625,766,851 5,237,777,697 5,832,777,138 202,973,116 196,290,917 228,736,279 301,093,111 1,543,832,869 1,279,722,959 (161,418,375) (12,491,801) 59,156,941 28,374,527 – – 43,814,566 87,427,782 – –
	2,596,630,932 5,375,369,931 4,237,447 16,032,656 7,050,545 21,022,682 4,991,925 903,582
	2,593,817,834 5,370,379,905 662,559,770 1,580,396,608
	1,931,258,064 3,789,983,297 1,903,947,505 3,783,041,583 27,310,559 6,941,714
	0.39 0.77 0.39 0.77
	215,631,658 (147,514,545)
	2,146,889,722 3,642,468,752 2,119,579,163 3,635,527,038 27,310,559 6,941,714

The accompanying notes form an integral part of these fi nancial statements.

40

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED CASH FLOW STATEMENT

Prepared by: Yanzhou Coal Mining Company Limited

Prepared by: Yanzhou Coal Mining Company Limited ITEM NOTES	Unit: RMB For the period ended For the period ended 30 June 2009 30 June 2008
1. CASH FLOW FROM OPERATING ACTIVITIES: Cash received from sales of goods or rendering of services Tax refunding Other cash received relating to operating activities VIII.47 Sub-total of cash inf ows Cash paid for goods and services Cash paid to and on behalf of employees Taxes payments Other cash paid relating to operating activities VIII.47 Sub-total of cash outf ows NET CASH FLOW FROM OPERATING ACTIVITIES 2. CASH FLOW FROM INVESTING ACTIVITIES: Cash received from recovery of investments Cash received from return of investments income Net cash received from disposal of f xed assets, intangible assets and other long-term assets Net cash received from disposal of sub companies and business units Other cash received relating to investing activities Sub-total of cash inf ows Cash paid to acquire f xed assets, intangible assets and other long-term assets Cash paid for investments Other cash paid relating to investing activities VIII.47 Sub-total of cash outf ows NET CASH FLOW USED IN INVESTING ACTIVITIES	12,302,901,322 14,264,635,693 1,043,166 21,411,964 124,833,350 67,127,850
	12,428,777,838 14,353,175,507
	3,054,580,764 4,161,015,748 2,061,426,570 1,806,223,414 2,918,791,059 3,138,894,933 772,483,714 782,726,064
	8,807,282,107 9,888,860,159
	3,621,495,731 4,464,315,348
	652,000,000 62,242,085 151,390,636 946,580 5,072,282 1,897,926
	63,188,665 810,360,844
	854,639,383 1,867,846,261 593,243,100 1,874,702,468 999,104,888
	3,322,584,951 2,866,951,149
	(3,259,396,286) (2,056,590,305)

41

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED CASH FLOW STATEMENT – CONTINUED

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM NOTES	For the period ended For the period ended 30 June 2009 30 June 2008
3. CASH FLOW FROM FINANCING ACTIVITIES: Cash received from investors Cash received from borrowings Sub–total of cash inf ows Repayments of borrowings and debts Cash paid for distribution of dividends or prof ts, or cash paid for interest expenses Other cash paid relating to investing activities Sub-total of cash outf ows NET CASH FLOW USED IN FINANCING ACTIVITIES 4. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 5. NET INCREASE (DECREASE) ON CASH AND CASH EQUIVALENTS VIII.47 Add: Cash and cash equivalent, opening VIII.47 6. Cash and cash equivalents, closing VIII.47	– 100,930,849 460,209,132
	100,930,849 460,209,132
	220,930,849 11,000,000 58,869,925 80,114,818
	279,800,774 91,114,818
	(178,869,925) 369,094,314
	17,715,435 (54,040,708)
	200,944,955 2,722,778,649 8,444,144,457 5,735,100,500
	8,645,089,412 8,457,879,149

The accompanying notes form an integral part of these fi nancial statements.

42

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

THE BALANCE SHEET OF PARENT COMPANY

Prepared by: Yanzhou Coal Mining Company Limited

Prepared by: Yanzhou Coal Mining Company Limited ASSET NOTES	Unit: RMB 30 June 2009 31 Dec 2008
CURRENT ASSET: Cash at bank and on hand Tradable f nancial assets Notes receivable Accounts receivable IX.1 Prepayments Intersts receivable Dividends receivable Other receveiables IX.2 Inventories Non-current assets due within one year Other current assets TOTAL CURRENT ASSETS NON CURRENT ASSETS: Available-for-sale f nancial assets Long-term equity investments IX.3 Investment real estate Fixed assets Fixed assets under construction Materials construction Disposal of f xed assets Entrust loan Intangible assets Goodwill Long-term deferred expenses Deferred tax assets Other non current assets TOTAL NON CURRENT ASSETS TOTAL ASSETS	11,462,982,710 9,389,869,959 – – 1,968,986,343 2,770,232,922 258,285,153 396,834,889 209,580,952 101,494,922 – 988,500 – – 482,586,794 533,236,628 470,392,451 693,974,320 – – 1,101,077,461 1,101,077,461 15,953,891,864 14,987,709,601 230,173,854 139,447,161 5,050,083,023 4,579,752,209 – – 6,142,959,581 6,522,615,260 187,973,398 126,693,270 2,637,870 1,259,016 (156,962) – 4,411,577,450 3,686,577,450 617,770,000 627,775,824 – – – – 681,065,312 496,878,733 117,950,940 117,925,900 17,442,034,466 16,298,924,823
	33,395,926,330 31,286,634,424

The accompanying notes form an integral part of these fi nancial statements.

43

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

THE BALANCE SHEET OF PARENT COMPANY – CONTINUED

Prepared by: Yanzhou Coal Mining Company Limited LIABILITIES AND SHAREHOLDERS’ EQUITY NOTES	Unit: RMB 30 June 2009 31 Dec 2008
CURRENT LIABILITIES: Short-term borrowings Tradable f nancial liabilities Notes payable Accounts payable Advances from customers Salaries and wages payable Taxes payable Interest payable Dividends payable Other payables Non-current liabilities due within one year Other current liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES: Bank borrowings Bonds payable Long-term payable Deferred tax liabilities Other non-current liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES OWNERS’ EQUITY: Share capital Capital reserves Surplus reserves Special reserves Retained earnings TOTAL SHAREHOLDERS’ EQUITY TOTAL LIABILITIES ANDSHAREHOLDERS’ EQUITY	– – – – 79,220,741 175,662,080 400,395,012 543,112,341 812,224,846 758,377,590 373,051,335 373,024,515 448,222,380 716,706,008 – – 1,967,360,000 – 1,503,866,182 1,386,325,563 12,648,464 12,648,464 967,364,952 450,978,948 6,564,353,912 4,416,835,509 – – – – 12,031,276 12,031,276 – – – 12,031,276 12,031,276 6,576,385,188 4,428,866,785 4,918,400,000 4,918,400,000 4,641,890,647 4,740,572,479 2,784,429,794 2,784,429,794 1,366,386,628 1,164,283,864 13,108,434,073 13,250,081,502 26,819,541,142 26,857,767,639
	33,395,926,330 31,286,634,424

The accompanying notes form an integral part of these fi nancial statements.

44

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

THE INCOME STATEMENT OF PARENT COMPANY

Prepared by: Yanzhou Coal Mining Company Limited

Prepared by: Yanzhou Coal Mining Company Limited ITEM NOTES	Unit: RMB For the period ended For the period ended 30 June 2009 30 June, 2008
1. TOTAL OPERATING REVENUE Including: Operating revenue IX.4 2. TOTAL OPERATING COST Including: Operating cost IX.4 Operating taxes and surcharges Selling expense General and administrative expense Financial expense Impairment loss of assets Add: Gain from the fair value changes (The loss is listed beginning with “-”) Investment income (The loss is listed beginning with “-”) IX.5 Foreign exchange gains (The loss is listed beginning with “-”) 3. Operating prof t (The loss is listed beginning with “-”) Add:Non-operating income Less: Non-operating expense Including: Loss on disposal of non-current assets 4. Total prof t (The total loss is listed beginning with “-”) Less: Income tax 5. Net prof t (The net loss is listed beginning with “-”) 6. Earnings per share (1) Earnings per share, basis (2) Earnings per share, diluted 7. Other comprehensive gains 8. Total comprehensive gains	8,947,649,932 11,952,199,153
	8,947,649,932 11,952,199,153
	6,673,509,236 6,951,444,588 4,985,946,808 5,359,117,869 195,564,463 189,492,320 182,014,439 184,673,362 1,328,265,673 1,113,163,894 (78,111,886) 76,622,616 59,829,739 28,374,527 – – 176,817,443 173,966,431 – –
	2,450,958,139 5,174,720,996 755,177 8,349,272 1,269,260 20,589,502 419,254 903,583
	2,450,444,056 5,162,480,766 624,731,487 1,564,127,801
	1,825,712,569 3,598,352,965
	0.37 0.73 0.37 0.73
	68,045,020 (150,381,797)
	1,893,757,589 3,447,971,168

The accompanying notes form an integral part of these fi nancial statements.

45

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CASH FLOW STATEMENT OF PARENT COMPANY

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM NOTES	For the period ended For the period ended 30 June, 2009 30 June, 2008
1. CASH FLOW FROM OPERATING ACTIVITIES: Cash received from sales of goods and rendering of services Tax refunding Other cash received relating to operating activities Sub-total of cash inf ows Cash paid for goods and services Cash paid to and on behalf of employees Taxes payments Other cash paid relating to operating activities Sub-total of cash outf ows NET CASH FLOW FROM OPERATING ACTIVITIES 2. CASH FLOW FROM INVESTING ACTIVITIES: Cash received from recovery of investments Cash received from return of investments Net cash received from disposal of f xed assets, intangible assets and other long-term assets Net cash amount received from the disposal of sub companies and other business units Other cash received relating to investing activities Sub-total of cash inf ows Cash paid to acquire f xed assets, intangible assets and other long-term assets Cash paid for investments Other cash paid relating to investing activities Sub-total of cash outf ows NET CASH FLOW USED IN INVESTING ACTIVITIES	11,375,760,239 13,230,206,804 – – 133,919,567 53,627,892
	11,509,679,806 13,283,834,696 2,610,518,565 3,376,683,156 1,680,375,518 1,585,691,162 2,809,445,246 3,059,589,346 874,540,953 1,064,865,109
	7,974,880,282 9,086,828,773
	3,534,799,524 4,197,005,923
	80,000,000 640,000,000 160,496,806 223,060,387 946,580 5,072,282 – –
	241,443,386 868,132,669 306,516,122 184,773,838 1,398,243,100 1,284,000,000 1,857,881,155 992,867,951 3,562,640,377 2,461,641,789
	(3,321,196,991) (1,593,509,120)

46

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CASH FLOW STATEMENT OF PARENT COMPANY – CONTINUED

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM NOTES	For the period ended For the period ended 30 June, 2009 30 June, 2008
3. CASH FLOW FROM FINANCING ACTIVITIES: Cash received from investors Cash received from borrowings Sub–total of cash inf ows Repayments of borrowings Cash paid for distribution of dividends or prof ts, or cash paid for interest expenses Cash payment relating to other f nancial activities Sub-total of cash outf ows NET CASH FLOW USED IN FINANCING ACTIVITIES 4. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 5. NET INCREASE (DECREASE) ON CASH AND CASH EQUIVALENTS Add: Cash and cash equivalent, opening 6. Cash and cash equivalents, closing	– – – – – – – – – – – – – – – – 1,629,062 (56,099,503) 215,231,595 2,547,397,300 8,221,690,515 5,626,433,656
	8,436,922,110 8,173,830,956

The accompanying notes form an integral part of these fi nancial statements.

47

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATECD STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD FROM 1 JANUARY, 2009 TO 30 JUNE, 2009

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

		Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company		Minority interest	Total
ITEM	Share capital	Capital reserves	Special reserves	Surplus reserves	Retained earnings	Translation reserve
I. Balance at 31 December, 2008	4,918,400,000	4,729,404,266	–	3,987,459,297	12,847,985,379	(115,168,599)	49,871,681	26,417,952,024
Add: Change in accounting policies			1,164,283,864	(1,203,029,503)	(190,949,220)	–		(229,694,859)
Correction of errors in the early stage		336,951,073		36,545,956	53,019,219		149,857,060	576,373,308
II. Balance at 1 January, 2009	4,918,400,000	5,066,355,339	1,164,283,864	2,820,975,750	12,710,055,378	(115,168,599)	199,728,741	26,764,630,473
III. Changes for the year
(The decrease is listed beginning with “-”)	–	(466,674,385)	202,102,764	–	(98,377,495)	89,062,943	15,025,559	(258,860,614)
(I) Net prof t					1,903,947,505		27,310,559	1,931,258,064
(II) Gain and loss directly recognized in
shareholders’ equity	–	(466,674,385)	202,102,764	–	–	89,062,943	–	(175,508,678)
1. Net fair value changes of available-
for-sale f nancial assets		126,568,715						126,568,715
2. Effect from equity change of other
shareholders of investors under
the equity method						89,062,943		89,062,943
3. Conversion differences for accounting statement			225,201,242					225,201,242
4. Others			(23,098,478)			–		(23,098,478)
Sub-total of (I) and (II)		(593,243,100)						(593,243,100)
(III) Owner’s contributions and reduction in capital	–	(466,674,385)	202,102,764	–	1,903,947,505	89,062,943	27,310,559	1,755,749,386
1. Capital contribution from owners	–	–	–	–	–	–	–	–
2. The Amount listed in the Shareholder
equity from share payment								–
3. Others								–
(IV) Prof t distribution								–
1. Transfer to surplus reserve	–	–	–	–	(2,002,325,000)	–	(12,285,000)	(2,014,610,000)
2. Provision for general risks								–
3. Distribution to shareholders					(2,002,325,000)		(12,285,000)	(2,014,610,000)
4. Others								–
(V) Internal settlement and transfer of owners’ equities	–	–	–	–	–	–	–	–
IV. Balance at 30 June, 2009	4,918,400,000	4,599,680,954	1,366,386,628	2,820,975,750	12,611,677,883	(26,105,656)	214,754,300	26,505,769,859

The accompanying notes form an integral part of these fi nancial statements.

48

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATECD STATEMENT OF CHANGES IN EQUITY – CONTINUED

FOR THE PERIOD FROM 1 JANUARY, 2009 TO 30 JUNE, 2009

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

		Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company	Attribute to shareholders of the Parent Company		Minority interest	Total
ITEM	Share capital	Capital reserves	Special reserves	Surplus reserves	Retained earnings	Translation reserve
I. Balance at 31 December, 2007	4,918,400,000	4,943,369,082	–	3,173,641,875	8,014,289,398	(13,941,634)	49,654,868	21,085,413,589
Add:Change in accounting policies			995,952,070	(1,016,162,238)	(184,855,662)	(111,817)	(205,177,647)	(205,065,830)
Correction of errors in the early stage		281,241,283		32,965,080	67,041,335		133,951,894	515,199,592
II. Balance at 1 January, 2008	4,918,400,000	5,224,610,365	995,952,070	2,190,444,717	7,896,475,071	(13,941,634)	183,494,945	21,395,435,534
III. Changes for the year
(The decrease is listed beginning with “-”)	–	(158,255,026)	168,331,794	630,531,033	4,813,580,307	(101,226,965)	16,233,796	5,369,194,939
(I) Net prof t					6,323,984,340		13,202,613	6,337,186,953
(II) Gain and loss directly recognized
in shareholders’ equity	–	(213,964,816)	168,331,794	–		(101,226,965)	2,505,117	(144,354,870)
1. Net fair value changes of available-for-
sale f nancial assets		(213,964,816)						(213,964,816)
2. Conversion differences for accounting statement						(101,226,965)		(101,226,965)
3. Provision for general risks			463,431,794					463,431,794
4. Usage of Provision for general risks			(295,100,000)					(295,100,000)
5. others							2,505,117	2,505,117
Sub-total of (I) and (II)	–	(213,964,816)	168,331,794	–	6,323,984,340	(101,226,965)	15,707,730	6,192,832,083
(III) Owner’s contributions and reduction in capital	–	55,709,790	–	–	–	–	19,573,710	75,283,500
1. Capital contribution from owners		55,709,790					19,573,710	75,283,500
2. Acquisition of 2% shareholders’equity
of Shanxi Neng Hua								–
3. others								–
(IV) Prof t distribution	–	–	–	630,531,033	(1,510,404,033)	–	(19,047,644)	(898,920,644)
1. Transfer to surplus reserve				630,531,033	(630,531,033)			–
2. Distribution to shareholders					(879,873,000)		(19,047,644)	(898,920,644)
3. others								–
(V) Internal settlement and transfer of owners’ equities	–	–	–	–	–	–	–	–
IV. Balance at 31 December, 2008	4,918,400,000	5,066,355,339	1,164,283,864	2,820,975,750	12,710,055,378	(115,168,599)	199,728,741	26,764,630,473

The accompanying notes form an integral part of these fi nancial statements.

49

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

STATEMENT OF CHANGES IN EQUITY OF PARENT COMPANY

For Six Months from January to June, 2009

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM	Share capital Capital reserves Special reserves Surplus reserves Retained earnings Total
I. Balance at 31 December, 2008 Add: Change in accounting policies Correction of errors in the early stage II. Balance at 1 January, 2009 III. Changes for the year (The loss is listed beginning with “-“) (I) Net prof t (II) Gain and loss directly recognized in shareholders’ equity 1. Net fair value changes of available- for-sale f nancial assets 2. Subsidiaries acquired under common control 3. Provision for general risks 4. Usage of Provision for general risks Sub-total of (I) and (II) (III) Owner’s contributions and reduction in capital 1. Capital contribution from owners 2. Share payment amount accrued to the owners’equities in the payment of shares (IV) Prof t distribution 1. Transfer to surplus reserve 2. Distribution to shareholders (V) Internal settlement and transfer of owners’ equities IV. Balance at 30 June, 2009	4,918,400,000 4,740,572,479 – 3,987,459,297 13,430,460,463 27,076,892,239
	– – 1,164,283,864 (1,203,029,503) (180,378,961) (219,124,600) –
	4,918,400,000 4,740,572,479 1,164,283,864 2,784,429,794 13,250,081,502 26,857,767,639
	– (98,681,832) 202,102,764 – (141,647,429) (38,226,497) 1,825,712,571 1,825,712,571 – (98,681,832) 202,102,764 – – 103,420,932 68,045,020 68,045,020 (166,726,852) (166,726,852) – 225,201,242 225,201,242 (23,098,478) (23,098,478) – (98,681,832) 202,102,764 – 1,825,712,571 1,929,133,503 – – – – – – – – – – – – (1,967,360,000) (1,967,360,000) – – – (1,967,360,000) (1,967,360,000) – – – – – –
	4,918,400,000 4,641,890,647 1,366,386,628 2,784,429,794 13,108,434,073 26,819,541,142

The accompanying notes form an integral part of these fi nancial statements.

50

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

STATEMENT OF CHANGES IN EQUITY OF PARENT COMPANY

FOR THE YEAR ENDED 31 DECEMBER, 2007 TO 31 DECEMBER, 2008

Prepared by: Yanzhou Coal Mining Company Limited

Unit: RMB

ITEM	Share capital Capital reserves Special reserves Surplus reserves Retained earnings Total
I. Balance at 31 December, 2007 Add:Change in accounting policies Correction of errors in the early stage II. Balance at 1 January, 2008 III. Changes for the year (The loss is listed beginning with “-“) (I) Net prof t (II) Gain and loss directly recognized in shareholders’ equity 1. Net fair value changes of available- for-sale f nancial assets 2. Effect from equity change of other shareholders of investors under the equity method 3. Provision for general risks 4. Usage of Provision for general risks Sub-total of (I) and (II) (III) Owner’s contributions and reduction in capital 1. Capital contribution from owners 2. Share payment amount accrued to the owners’equities in the payment of shares (IV) Prof t distribution 1. Transfer to surplus reserve 2. Distribution to shareholders (V) Internal settlement and transfer of owners’ equities1 IV. Balance at 31 December, 2008	4,918,400,000 4,942,801,517 – 3,173,641,875 8,625,549,602 21,660,392,994
	995,952,070 (1,016,162,238) (181,891,513) (202,101,681) –
	4,918,400,000 4,942,801,517 995,952,070 2,157,479,637 8,443,658,089 21,458,291,313
	– (202,229,038) 168,331,794 626,950,157 4,806,423,413 5,399,476,326 6,269,501,570 6,269,501,570 – (202,229,038) 168,331,794 – – (33,897,244) (202,229,038) (202,229,038) – 463,431,794 463,431,794 (295,100,000) (295,100,000) – (202,229,038) 168,331,794 – 6,269,501,570 6,235,604,326 – – – – – – – – – – – 626,950,157 (1,463,078,157) (836,128,000) 626,950,157 (626,950,157) – (836,128,000) (836,128,000) – – – – – –
	4,918,400,000 4,740,572,479 1,164,283,864 2,784,429,794 13,250,081,502 26,857,767,639

The accompanying notes form an integral part of these fi nancial statements.

51

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE, 2009

I. GENERAL

Yanzhou Coal Mining Company Limited (the “Company”) is a stock company with limited liability established in the People’s Republic of China (the “PRC”). The Company was established in September, 1997 by Yankuang Group Corporation Limited (the “Yankuang Group”) in accordance with the Tigaisheng (1997) No. 154 document issued by “National Economic System Reform Commission of People’s Republic of China. The address of the registered offi ce is Zoucheng City, Shandong Province. The total share capital was RMB1,670 million with Par value per share of RMB1.00 when the Company was set up.

As approved by Zhengweifa (1997) No.12 document issued by Securities Committee of State Council, the Company issued H shares with face value of RMB820 million to Hong Kong and international investors in March 1998. The American underwriters exercised the excessive issue option and the Company issued additional H Shares of RMB30 million. The above shares were listed and traded on Stock Exchange of Hong Kong Limited on 1 April, 1998, and the American Depository Shares was listed in the New York Stock Exchange on 31 March, 1998. The total share capital has changed to RMB2,520 million after these issues.

The company issued 80 million new A shares in June 1998. The above shares went public and were traded on Shanghai Stock Exchange since 1 July, 1998. After many issues and bonus shares, the share capital of the Company increased to RMB4,918.4 million by 30 June, 2009.

The Company and its subsidiary companies (hereinafter collectively referred to as the “Group”) are mainly engaged in the coal mining and preparation, coal sales, cargo transportation by self-operated railways, road transportation, port operation, comprehensive scientifi c and technical service for coal mines, methanol production and sales etc.

II. THE PREPARATION FOUNDATION OF FINANCIAL STATEMENTS

The Group has adopted the Accounting Standards for Business Enterprises (hereinafter referred to as “new CASs” or “ASBEs”) and No.38 specifi c accounting standard issued by the Ministry of Finance (MOF) on 15 February, 2006, and later issued application guide to the ASBE, the interpretation of ASBE and relevant regulations.

The Group takes going concern as the basis of fi nancial statements.

III. DECLARATION OF COMPLIANCE WITH ASBES

The fi nancial statements of the Group have been prepared in accordance with the new ASBEs and have been presented completely and genuinely with the fi nancial information of the Group such as its fi nancial position, operating results and cash fl ows and so on. In addition, the fi nancial statements of the Group are presented and disclosed in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 15 – General Provisions on Financial Reporting (Revised 2007) issued by China Securities Regulatory Commission.

52

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

IV. CHANGE OF ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

1. Change of accounting policies

(1) Special reserve

In accordance with Notice of the Ministry of Finance issuing Note III to Accounting Standards for Business Enterprises (Caikuai [2009] No.8), the company has to accrue for provision for production maintenance and production safety expenses, Work Safety expenses and reform and specifi c development fund, which were previously presented in special reserve in surplus reserves in owner’s equity, now are presented in cost of expenses and the amount that has been accrued but not used are presented in special reserve of owner’s equity. Fixed assets purchased with special reserve, which was previously presented in cost of expenses under normal depreciation method, now are presented in related assets and full amount carryover accumulated depreciation.

The accounting policies change adopted retrospective method, and the comparative fi nancial statements of 2009 have been restated. Under the new accounting policies with retroactive method, the accumulated infl uence on net profi t attributable to parent company at the beginning of 2008 was RMB-205.07 million, including the decrease of undistributed profi t RMB184.86 million, the decrease of surplus reserves RMB1,016.16 million and increase of special reserve RMB995.95 million. Under the new accounting polices, the infl uence on fi nancial statements of 2008 was decrease of undistributed profi ts at end of year RMB190.95 million, decrease of surplus reserves at the end of year RMB1,203.03 million, increase of special reserve at the end of year RMB1,164.28 and decrease of net profi t attributable to parent company of 2008 RMB192.96 million.

(2) Comprehensive income

In accordance with Notice of the Ministry of Finance issuing Note III to Accounting Standards for Business Enterprises (Caikuai [2009] No.8), the Company has to add the items of other comprehensive income and total of comprehensive income in earnings per share in income statement. The other comprehensive income refl ected the net of unconfi rmed profi t and loss after income tax, and the total of comprehensive income reflected the total of enterprise net income and other comprehensive income. The other comprehensive income of the Group was RMB215.63 million and RMB-147.51 million in January-June, 2009 and January-June, 2008, respectively. The comparative income statement has been restated under the new rules.

53

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

IV. CHANGE OF ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES – CONTINUED

2. Change of accounting estimates

The fi xed assets of the Group valued RMB15,940.12 million, being estimated to serve for 5-40 years, with net residual value rate of 3%. Due to the update of national safety requirements, part of the phased out production equipment can not be repaired and serve again, and gain on disposal of underground assets, part of architectures are very low or the estimating disposal expenses far exceed the gain on disposal. For these reasons, approved by the board of the Company, the Group has changed the net residual value rate of fi xed assets above to 0% since 1 April, 2009, that refl ect the net residual value with more accuracy. Under the new accounting estimates, the infl uence on net profi t of January-June, 2009 was RMB75.80 million.

V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS

1. Accounting period

The accounting period is from the Calendar year 1 January to 31 December.

2. Recording currency

The recording currency of the Company is Renminbi (RMB). As the primary economic environment for overseas subsidiaries of the Company, Yancoal Australia Pty Limited and Austar Coal Mine Pty Limited are in Australia, the recording currency of the two Companies is AUD. On the conversion method from AUD to RMB, please refers to V.5.

3. Basis of accounting and principle of measurement

The Company has adopted the accrual basis of accounting and used the historical cost convention as the principle of measurements for assets and liabilities except for tradable fi nancial assets, available-for-sale fi nancial assets and hedging instruments, which are measured at their fair values.

4. Cash and cash equivalents

Cash in cash fl ow are cash on hand and deposits available for payment at any time. Cash equivalents in cash fl ow are investments which are short-term (normally become due within 3 months after purchasing date), highly liquid, readily convertible to known amounts of cash, and subject to an insignifi cant risk of changes in value.

54

Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

5. Foreign currency translation

Foreign currency transactions are converted to RMBat the spot exchange rate of the day when the transaction occurs. At the balance sheet date, foreign currency monetary items are translated to RMBusing the spot exchange rate of the day. Exchange differences arising are recognized in profi t or loss for the current period, except for the exchange differences arising on the borrowing costs eligible for acquisition, construction or production of assets which are qualifi ed for capitalization. Foreign currency non-monetary items measured at fair value are translated using the exchange rates at the date when the recognized fair value is determined. The differences between the amount of the recording currency before and after conversion are recognized in profi t or loss or interests of shareholders as changes of fair value. Foreign currency non-monetary items measured at historical cost are translated at the spot exchange rates at the date of the transactions, and do not change the RMBamount.

Preparation of consolidated fi nancial statements involving overseas operations, the exchange differences due to the exchange rate fl uctuation should be presented in the “Translation reserve” item in shareholders’ equity in case of a net investment of overseas operations of foreign currency monetary items. The disposal of offshore operations shall be included in profi t or loss for the current period.

6. Financial assets and fi nancial liabilities

• (1) Classifi cation of fi nancial assets

Upon initial recognition, fi nancial assets are classifi ed into the following categories: fi nancial assets at ‘fair value through profi t or loss’ (FVTPL), ‘held-to-maturity’ investments, ‘available-for-sale’ (AFS) fi nancial assets and ‘loans and receivables’.

1) Financial assets at FVTPL: A fi nancial asset is held for trading if it has been acquired principally for the purpose of selling in the short term and presented as the tradable fi nancial assets in the balance sheet.

2) Held-to-maturity investment

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fi xed maturity date that the enterprise has the clear intention and ability to hold to maturity.

3) Receivables:

Non-derivative fi nancial assets with fi xed or determinable payments are not quoted in an active market, including notes receivables, accounts receivables, interest receivables, dividend receivables and other receivables.

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Interim Report 2009

YANZHOU COAL MINING COMPANY LIMITED

V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

6. Financial assets and fi nancial liabilities – continued

• (1) Classifi cation of fi nancial assets – continued

• 4) AFS fi nancial assets

AFS fi nancial assets are those non-derivative fi nancial assets that are designated as available for sale or are not classifi ed as (1) fi nancial assets at FVTPL, (2) loans and receivables, or (3) held-tomaturity investments.

(2) Recognition and measurement of fi nancial assets

• Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of fi nancial assets and fi nancial liabilities (other than fi nancial assets at fair value through profi t or loss) are added to or deducted from the fair value of the fi nancial assets, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of fi nancial assets at fair value through profi t or loss are recognized directly in profi t or loss. Financial assets are no longer recognised when the rights to receive cash fl ows from the assets expire or, the fi nancial assets are transferred and the Group has transferred substantially all the risks and rewards of ownership of the fi nancial assets.

Financial assets and AFS fi nancial assets at FVTPL are subsequently measured at fair value. The receivables and held-to-maturity investments are carried at the amortized cost using the effective interest rate method.

Changes in fair value of fi nancial assets at FVTPL are included in profi t or loss for the period at fair value. The received interest during the period holding assets shall be recognized as investment income. On disposing of it, the difference between fair value and initial accounting value shall be recognized as in profi t or loss statements on investment, and the profi t or loss at the fair value is also adjusted accordingly.

The changes in fair value of AFS fi nancial assets are recorded in the shareholder’s equity. The interest calculated by actual interest rate during the period holding assets shall be recognized as investment income. The cash dividends on investments in an available-for-sale equity instrument shall be recorded into the investment income when cash dividends are declared and issued by the investee. On disposing it, the difference after changing the fair value accumulated amount from the amount received and the carrying amount deducting the original shareholder’s equity shall be recorded into the investment profi t and loss.

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6. Financial assets and fi nancial liabilities – continued

(3) Impairment of fi nancial assets

The Company estimates the carrying amount of a fi nancial asset at the balance sheet date (other than those at FVTPL). If there is objective evidence that the fi nancial asset is impaired, the Company shall determine to accrue the amount of any impairment loss.

If the fair value of an AFS fi nancial asset declines substantially or non-temporarily, the accumulated loss arising from this decline that had been recognized directly in shareholders’ equity shall be recognized in the profi t or loss statement. After an impairment loss has been recognized on an AFS fi nancial asset, if the fair value of the fi nancial asset increases in a subsequent period and the increase can be objectively related to an event occurring after the impairment loss was recognized, the impairment loss shall be reversed, with the amount of the reversal of AFS debt instrument recognized in profi t or loss.

The impairment losses are not reversed if investments in equity instrument that is not quoted in an active market whose fair value cannot be measured reliably.

(4) Financial liabilities

Upon initial recognition, fi nancial liabilities are classifi ed as either fi nancial liabilities ‘at fair value through profi t or loss’ (FVTPL) or ‘other fi nancial liabilities’.

Financial liabilities are classifi ed as at FVTPL where the fi nancial liability is either held for trading or it is designated as at FVTPL. Financial liabilities at FVTPL are subsequently measured at fair value, with gains or losses arising from changes in fair value as well as dividends and interest income related to such fi nancial liabilities recognized in profi t or loss for the period.

Other fi nancial liabilities are subsequently measured at unamortized cost using the effective interest method.

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6. Financial assets and fi nancial liabilities – continued

(5) Hedging

Hedging is a derivative instrument used for avoiding exchange risk and interest rate risk, which comprises of fair value hedging, cash fl ow hedging and net overseas investment hedging. Hedging instruments meet following conditions shall adopt hedging accounting method:

(i) When hedging begins, the Group offi cially designates hedging relationship and issues offi cial documents on hedging relationship, risk management objectives and hedging strategy; (ii) the hedging expectation is highly effective and is in line with the original risk management strategy of the Group; (iii) as for cash fl ow hedging, the expected transaction will most probably occur, which must make the Company exposed to the cash fl ow change risk that eventually affect profi t and loss; (iv) hedging effectiveness can be reliably measured; and (v) the Company continuously carry out the assessment of the hedging effectiveness, and make sure the hedging with valid elevation within accounting period designated in hedging relationship.

When fair value hedging meets above conditions, gains or losses arising from the changes of fair value will be presented in current profi t and loss. As for cash fl ow hedging meets above conditions, the valid part of gains or losses arising from hedging recorded in capital reserves; meanwhile the invalid part will be presented in current profi t and loss. For expected trading hedging that makes the Company confi rm as fi nancial assets or fi nancial liability, profi t or loss which was recorded in capital reserves shall be transferred in to current profi t and loss within the period of the fi nancial assets or fi nancial liability which imposes infl uence on the Company’s profi t and loss. For expected trading hedging that makes the Company confi rm as non-fi nancial assets or non-fi nancial liability, profi t or loss which was recorded in capital reserves presented in original confi rmed amount of the non-fi nancial assets or non-fi nancial liability. For other fair value hedging and cash fl ow hedging which do not meet the above conditions, their fair value changes shall be presented in current profi t and loss.

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7. Accounting method for bad debt provisions of the receivables

• The receivables with individual amount of over a certain standard are considered as the signifi cant receivables. If there is objective evidence that all receivables can not be recovered in accordance with the former stipulations, the impairment shall be assessed separately based on the difference between current value of future cash fl ow and the carrying amount, and the Company shall be determined to accrue the bad debt provisions.

The insignifi cant receivables shall be classifi ed into several combinations based on credit risk characteristics together with signifi cant receivables without impairment after separate assessment. According to the actual loss rate of the same or similar receivables combinations that has similar credit risk characteristics, the proportion of accrued bad debts provisions in each combination is determined with the current situations. Consequently, the bad debts provisions of the year shall be calculated out. If there is defi ned evidence for the receivables not to or not likely to be received, the receivables with the accounting period exceeding three years are classifi ed into special assets portfolio and accrued bad debts provisions in full amount.

The percentage of bad debt provision is as followings according to accounting aging:

Accounting aging	Accrual percentage
within 1 year	4%
1-2 years	30%
2-3 years	50%
over 3 years	100%

8. Inventories

• (1) the classifi cation of inventories: The inventories include the raw materials, the fi nished goods, and so on.

• (2) the pricing method of receiving and issuing inventories: The Company adopts a perpetual inventory system to calculate its inventory, using the actual cost pricing for procurement and inventories, and weighted average approach for consumptions and sales of the raw materials and the fi nished goods.

• (3) pricing principles of the end-of-period inventories, recognition standard and accrual method for inventories impairment provision: The end-of-period inventories are measured at the lower one between the cost and the convertible net value. At the end of the period, if the inventories are damaged, become partially or completely obsolete or sold at price lower than cost, unrecoverable cost shall be estimated and recognized as a provision for decline in value on the basis of complete inventories check. The excess of cost over the convertible net value is generally recognized as provision for decline in value of inventories on a separate inventory item.

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8. Inventories – continued

• (4) The convertible net value is the estimated selling price in the ordinary course of business minus the estimated completion costs and the estimated sales expenses and the relevant taxes and expenses. To recognize the convertible net value of the inventories needs to consider the purpose to hold the inventories and the effects of the events occurred after the balance sheet date based on the defi ned available evidence.

9. Long-term equity investments

• (1) Initial measurement of long-term equity investments

• For a business combination involving enterprise under common control, the initial investment cost of the long-term equity investment is the carrying amount of the owner’s equity of the party being absorbed at the combination date. For a business combination not involving enterprises under common control, the initial investment cost of the long-term equity investment acquired is the aggregate of the fair value, at the acquisition date, of the acquiree’s identifi able assets, liabilities and contingent liabilities acquired. For a long-term equity investment acquired by cash payment, the initial investment cost shall be the actual purchase price that has been paid. Initial investment cost also includes those costs, taxes and other necessary expenditures directly attributable to the acquisition of the long-term equity investment. For a long-term equity investment acquired by the issue of equity securities, the initial investment cost shall be the fair value of the securities issued. A long-term equity investment invested by investors, the initial investment cost use the values described in investment contract or agreement. For a long-term equity investment acquired by debts re-organization or non-currency assets transaction, the initial investment cost shall be recognized in accordance with relevant accounting standards.

• (2) Subsequent measurement of long-term equity investments

The cost method is applied in calculating the subsidiaries investment, equity method used in adjusting the consolidated fi nancial statements. If the Company does not have joint control or signifi cant infl uence over the investee, the investment is not quoted in an active market and its fair value cannot be reliably measured, a long-term equity investment shall be calculated using the cost method. If the Company does not have control, joint control or signifi cant infl uence over the investee and the fair value of the long-term equity investment can be reliably measured, the investment shall be calculated as an available-for-sale fi nancial asset.

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10. Fixed assets

• (1) Recognition of fi xed assets: Fixed assets are tangible assets that are held for production or operation, and have a service life more than one accounting year.

• (2) Category of fi xed assets: Buildings, coal mine buildings, ground buildings, railway structure, harbour works and craft, plant, machinery and equipment, transportation equipment etc.

• (3) Measurement of fi xed assets: The fi xed assets shall be initially measured at actual cost of acquisition considering the effect of any expected costs of disposing the asset. Among these, the costs of outsourcing fi xed assets include duties and expenses such as purchasing cost, VAT, import tariff, other expenses incurred to ensure estimated usage of the fi xed assets that can be directly included in the assets. The costs to build the fi xed assets include necessary expenses incurred to ensure the usage status of the assets. The accounting value of the fi xed assets invested by the investors shall be accordance with the values specifi ed in the investment contract or agreement, while for not fair value specifi ed in the contract or agreement, shall be regarded as fair value in accounting value.

• (4) Depreciation approach of fi xed assets: The depreciation is provided to all fi xed assets except those that have already accrued depreciation and lands category. The mining structures are depreciated using the estimated production capacity method, and other fi xed assets using the average service life method, calculating depreciation rate by month and record it into the current cost or expenses of relevant assets according to their various purposes. The Group’s estimated residual value for fi xed assets is 0-3%, the estimated residual rate; useful life and annual depreciation rate of each category of fi xed assets using the composite life method are as follows:

		Estimated	Annual
	Useful	residual	depreciation
Category	life	value rate	rate
	(years)	(%)	(%)
House Buildings	15-30 years	0.00%-3.00%	3.23-6.67%
Ground buildings	15-25 years	0.00%-3.00%	3.88-6.67%
Port works and vessels	40 years	0.00%	2.50%
Plant, machinery and equipment	4-15 years	0.00%-3.00%	6.47-25.00%
Transportation equipment (Note)	6-18 years	0.00%-3.00%	5.39-16.67%

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10. Fixed assets – continued

• (4) – continued

The vessels of Shandong Yancoal Shipping Co., Ltd. are depreciated over 18 years. All the other transportation equipments are depreciated over 6 to 9 years.

The mining structures are depreciated using production volume method at a estimated amount per tonne of raw coal mined according to its designing production volume.

Land category only refers to that of Australian Southland Coal Mine and no depreciation is provided for as Austar enjoys the permanent ownership.

• (5) Treatment of subsequent costs incurred on fi xed assets The subsequent costs incurred on fi xed assets mainly include expenses for repair, renovation and improvement, which shall be recognized as addition to the asset provided economic benefi ts associated with the item will fl ow to the Company and the cost could be reliably measured. For the replaced parts, carrying value shall not be recognized and other subsequent costs incurred shall be recognized in the gain and loss in the period.

• (6) The Company shall review the useful life and estimated net residual value of a fi xed asset and the depreciation method applied at least at each fi nancial year-end. A change in the useful life or estimated net residual value of a fi xed asset or depreciation method used shall be treated as a change in an accounting estimate.

• (7) Fixed assets that can not bring economic returns after treatment or are not expected to bring economic returns after use or treatment shall be no longer recognized. When a fi xed asset is sold, transferred, scraped or damaged, the enterprise shall recognize the amount of any proceeds on disposal of the asset net of the carrying value and related taxes in profi t or loss for the current period.

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• V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

11. Fixed assets under construction

• (1) the pricing approach of the fi xed assets under construction: To be measured at the actual costs incurred for the construction. The self-operated construction is recorded at all cost of direct materials, direct salary, and direct construction expenditures etc. And the contracting construction is recorded at the payable construction cost and so on. The equipment installation cost is measured at value of the installed equipment, installation cost, all expenses incurred for project test-run. The cost of fi xed assets under construction includes capitalized borrowing costs, gain and loss from currency exchange.

• (2) Standard and time of transfer from the fi xed assets under construction to the fi xed assets: The fi xed assets under construction shall be transferred to the fi xed assets from the date of starting its estimated usable condition based on their construction budget, construction pricing or project actual cost and so on, and its depreciation will begin from the next month. The difference of the fi xed assets original values shall be adjusted upon the resolution procedures of the project completion.

12. Borrowing costs

• (1) Borrowing costs incurred that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that assets. The actual amounts of ancillary costs incurred shall be recognized as an expense in the period in which they are incurred. Qualifying assets are assets (fi xed assets, investment property, inventories, etc) that necessarily take a substantial period of time (normally over one year) for acquisition, construction or production to get ready for their intended use or sale.

• (2) capitalization of borrowings cost: Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset (that necessarily take a substantial period of time for acquisition, construction or production go get ready for their intended use or sale), when expenditures for the asset and borrowing costs are being incurred, activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced shall be capitalized,capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months and borrowings cost of that assets discontinue the capitalization when acquired and constructed production is available for use.

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12. Borrowing costs – continued

• (3) Calculation approach for capitalized borrowing costs: Where funds are borrowed under a specifi c- purpose borrowing for the acquisition, construction or production of a qualifying asset, the amount of interest to be capitalized shall be the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings and are utilized for the acquisition, construction or production of a qualifying asset, an enterprise shall determine the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specifi c-purpose borrowings. The capitalization rate shall be the weighted average of the interest rates applicable to the general-purpose borrowings.

13. Intangible assets

• (1) The pricing method of intangible assets: The intangible assets of the Group include mainly the land use rights and the mining rights etc. For purchased intangible assets, actual paid cost and other relevant expenses are used as the actual cost. For intangible assets invested by investors, the actual cost is determined according to the values specifi ed in the investment contract or agreement, while for the unfair agreed value in contract or agreement, the actual cost is determined at the fair value.

• (2) Amortization and term of the intangible assets: The land use rights and the mining rights are evenly amortized over transferred term since the rights are obtained. The amortized amounts shall be included in the cost of related assets or profi t or loss for the period in which they are incurred based on the benefi ciary objects.

• (3) For an intangible asset with a fi nite useful life, the Company shall review the useful life and the amortization method applied at each fi nancial year-end. A change in the useful life or amortization method used shall be accounted for as a change in an accounting estimate. For an intangible asset with an indefi nite useful life, the Company shall reassess the useful life of the asset in each accounting period. If there is evidence indicating that the useful life of that intangible asset is fi nite, the Company shall estimate the useful life of that asset and apply the accounting requirements of the Standard accordingly.

14. Long-term deferred expenses

Long-term deferred expenses are various expenditures incurred but that should be allocated over the current and future periods of more than one year. Long-term deferred expenses are evenly amortized over the respective benefi cial period.

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15. Impairment of non-fi nancial assets

The Company assesses at each balance sheet date whether there is any indication that the long-term equity investments measured by equity method, investment property, fi xed assets, and construction in progress and intangible assets with fi nite useful life may be impaired. If there is objective evidence that one or more events that occurred after the initial recognition of the asset and that event has an impact on the estimated future cash fl ows of the fi nancial asset which can be reliably estimated, a fi nancial asset is impaired. Goodwill arising in a business combination and an intangible asset with an indefi nite useful life shall be tested for impairment annually, irrespective of whether there is any indication that the asset may be impaired. For the purpose of impairment assessment, goodwill shall be considered together with the related asset groups or sets of asset group allocated with goodwill should be assessed for impairment at each fi nancial year-end.

If the recoverable amount of the asset groups or set of asset groups is less than the book value, the difference will be recognized as impairment loss and once an impairment loss is recognized, it shall not be reversed in a subsequent period. The recoverable amount of an asset is the higher of its fair value cost of disposal and the present value of the future cash fl ows expected to be derived from the asset costs of disposal.

The signs of impairment are as follows:

• (1) The current market price of an asset substantially declines, exceeding obviously the expected decline caused by time changes or normal application.

• (2) The current or future signifi cant changes in the economic, technical or legal environment of the enterprise and in the market of an asset shall have adverse impacts on the enterprise.

• (3) The improved market rate or other return on investment in the period shall have an effect on the discount rate used by enterprise to calculate estimated cash fl ow present value, leading to substantial decline in recoverable amount of assets.

• (4) There is evidence to demonstrate that the assets have already gone absolute or its entity has already been damaged.

• (5) the assets have already been or will be left unused, or will stop using, or are under the plan to be disposed in advance.

• (6) the evidences of internal reports demonstrate that economic returns of assets have already been lower or will be lower than expectations, for example, net cash fl ow created by assets or operating profi t (or loss) realized by assets are much lower (or higher) than expected amounts.

• (7) Other signs to indicate that assets value have already been impaired.

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16. Goodwill

Goodwill means equity investment cost or the differences between the merger costs and the shareholder’s equity book value of the combined party under the corporate merger not under the same control.

Goodwill related to subsidiaries shall be presented alone in consolidated fi nancial statements, to joint ventures or associated companies shall be included in the book value of long-term equity investment.

Impairment test shall be conducted at least once for goodwill separately listed in the fi nancial statements at every year. For the purpose of impairment testing, the carrying amount of goodwill shall be allocated on a reasonable basis to each of the related asset groups or related sets of asset groups based on the synergistic effects of business combination.

17. Employee benefi ts

(1) Employee benefi ts

Mainly include salary, bonus, allowance and subsidy, employee welfare expenses, social insurance cost, public accumulation fund for housing construction, labour union expenditures, employee education funds and other expenses associated with service rendered by employees.

In the accounting period in which an employee has rendered service to the company, the company shall recognize the employee benefi ts payable for that service as a liability, and recorded into related assets or current profi t or loss in accordance with the objects that benefi ted from the service rendered by employees. Any compensation liability arising from the termination of employment relationship with employees should be charged to the profi t or loss for the current period.

The internal retirement scheme for the Group’s Employees adopts the same principles with the abovementioned offi cial retirement benefi t. During the period, from the date at which the employees stop the provision of services to the offi cial retirement date, the salaries and social insurance premiums payable of the internal retirement shall be discounted according to the total amount and accounted into current profi t and loss.

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18. Estimated liability

• (1) The recognition principles of the estimated liability: the Company recognizes it as a provision when an obligation related to an contingency such as the external guarantee, pending litigation or arbitration, product quality warranty, downsizing scheme, loss contract, restructuring obligation and so on satisfy all of the following conditions:

• 1) The obligation is a present obligation of the Company;

• 2) It is probable that an outfl ow of economic benefi ts from the Company will be required to settle the obligation;

• 3) The amount of the obligation can be measured reliably.

• (2) The measurement approaches of the estimated liability: the estimated liability is primarily measured according to the estimated optimal value paid to implement the relevant present obligations considering the factors such as the risks, uncertainties and currency time values related to the contingencies. If the currency time value has major effects, the estimated optimal value is determined after the discounting of the relevant future cash fl ow. If any change happens to the estimated optimal value during reviewing the carrying amount of the estimated liabilities on the balance sheet date, the adjustment will be made to the carrying amount to refl ect the current estimated optimal value.

19. Coal industry special reserves

• (1) Provision for production maintenance and production safety expenses Pursuant to the rules and regulations jointly issued by Ministry of Finance, State Administration of Coal Mine Safety and related government authorities in PRC, the Company has to accrue for production maintenance expenses (Wei Jian Fei) at RMB6 per ton of raw coal mined, which is used to maintain production and technical improvement of coal mines. The Company also accrues for production safety expenses at RMB8 per ton raw coal mined (standards for the Company’s subsidiary Shanxi Heshun Tianchi Energy Company Limited is RMB15 per ton raw coal mined) and is used for purchase of coal production equipment and safety expense of coal mining structure.

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19. Coal industry special reserves – continued

• (1) Provision for production maintenance and production safety expenses – continued

In accordance with the regulations of “Interim Measures for Financial Management on Safe Production Cost of High-risk Industries And Enterprises (CAIQI[2006]No.478)” of the State Administration of Work Safety, as one of the subsidiaries of the Group, Hua Ju Energy has a commitment to incur Work Safety Cost at the rate of: 4% of the sales income for the year below RMB10 million; 2% of the actual sales income for the year between 10 million and 100 million (included); 0.5% of the actual sales income for the year between RMB10,000 million and RMB100,000 million (included); 0.5% of the actual sales income for the year above RMB1 billion.

The above-mentioned provision shall be listed in the cost and expenses, and the unutilized Work Safety Cost shall be listed in the account item “Special reserves” separately.

(2) Specifi c development fund

Pursuant to “Notice of setting up reform and specific Development Fund for provincial key coal corporations” Lucaiqi [2004] No.28, which was jointly issued by Shandong Province Finance Bureau, State-owned Assets Supervision and Administration Commission of Shandong Provincial Government, Shandong Province Coal Mine Industry Bureau, Reform and Specifi c Development Fund is accrued at RMB5.00 per tonne of raw coal mined from 1 July, 2004 and is used for related expenditures on new mine construction.

Pursuant to “Notice of calling off reform and specific Development Fund for provincial key coal corporations” Lucaiqi [2004] No.44, which was jointly issued by Shandong Province Finance Bureau, State-owned Assets Supervision and Administration Commission of Shandong Provincial Government, Shandong Province Coal Mine Industry Bureau, Reform and Specifi c Development Fund is called off accruals to the Company since 1 January, 2008.

• (3) Shanxi coal mines switching to other business development fund

Pursuant to Shanxi Coal Mine Switching to Other Business Development Fund Provision and Use Management Methods (Pilot) (Jinzhengfa [2007] No.40), since 1 May, 2008, the subsidiary Shanxi Heshun Tianchi Energy Co., Ltd. accrues RMB5 per ton ROM for Coal Mine Switching to Other Business Development Fund.

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19. Coal industry special reserves – continued

• (4) Shanxi environment management guarantee deposit

• Pursuant to Notice of Provision and Use Management Method of Shanxi Coal Mine Environment Rehabilitation Management Guarantee Deposit (Pilot) (Jinzhengfa [2007] No.41) issued by Shanxi Provincial People’s Government, the subsidiary Shanxi Heshun Tianchi Energy Co., Ltd. accrues RMB10 per ton ROM for the Environment Rehabilitation Management Guarantee Deposit since 1 May, 2008. The provision and use of the deposit will abide by the following principals of “owned enterprises, used only for special purpose, saved in special account and supervised by government”.

20. Revenue recognition

The business revenues are generated mainly from sales of goods, rendering of services and alienating the right to use assets. The revenue is recognized when the Company has received the economic benefi ts associated with the transaction, and relevant amount of revenue can be reliably measured and meets the recognition standards of special revenue.

• (1) Revenue from sales of goods:

Revenue is recognized when the Company has transferred to the buyer the signifi cant risks and rewards of ownership of the goods, retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, will receive the economic benefi ts associated with the transaction, and can reliably measure the relevant amount of revenue and costs.

• (2) Revenue from rendering of services:

• When the provision of services is started and completed within the same accounting year, revenue is recognized at the time of completion of the services. When the provision of services is started and completed in different accounting years and the outcome of a transaction involving the rendering of services can be estimated reliably, revenue is recognized at the balance sheet date by the use of the percentage of completion method.

• (3) Revenue from alienating the right to use assets

The revenue is recognized when the Company has received the economic benefi ts associated with the transaction, and can reliably measure the relevant amount of revenue.

• 1) Interest income is measured based on the length of time for which the Company’s cash is used by others and the applicable interest rate.

• 2) Business lease income is recognized by the straight-line methods in the leasing period.

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21. Leases

The lease engaged by the Company is the operating lease and is a lease that does not transfer substantially all the risks and rewards incident to ownership of an asset. Lease payments under operating leases are recorded into an expense in the income statement on a straight-line basis over the lease term.

22. Deferred income tax assets and liabilities

The deferred income tax assets and liabilities are recognized based on the differences arising from the difference between the carrying amount of an asset or liability and its tax base (temporary differences). For any deductible loss or tax deduction that can be deducted the amount of the taxable income the next year according to the taxation regulations, the corresponding deferred income tax asset shall be determined considering the temporary difference. On the balance sheet date, the deferred income assets and deferred income tax liabilities shall be measured at the tax rate applicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled.

An enterprise shall recognize the deferred income tax liability arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. For the recognized deferred income tax asset, if it is unlikely to obtain suffi cient taxable income to offset against the benefi t of the deferred income tax asset, the carrying amount of the deferred income tax assets shall be written down. Any such write-down should be subsequently reversed where it becomes probable that suffi cient taxable income will be available.

23. Accounting calculation of the income tax

The accounting calculation of the income tax adopts the balance sheet liabilities approach. The income taxes include the current and deferred income tax. The current income tax and deferred income tax expenses and earnings are recorded into the current profi t and loss, except those related to the transactions and events are recorded directly into the shareholder’s equity and the deferred income tax is adjusted into the carrying amount of goodwill arising from the business combination.

The current income tax expense is the income tax payable, that is, the amount of the current transactions and events calculated according to the taxation regulations paid to the taxation authorities by the enterprises. The deferred income tax is the difference between the due amounts of the deferred income tax assets and liabilities to be recognized according to the balance sheet liabilities approach in the period end and the amount recognized originally.

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V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

24. Business combinations

A business combination is a transaction or event that brings together of separate enterprises into one reporting entity. The Company recognizes the assets and liabilities arising from the business combinations at the combinations date or acquisition date. Combinations date or acquisition date is the date on which the absorbing party effectively obtains control of the party being absorbed.

• (1) Business combinations involving enterprises under common control: Assets and liabilities that are obtained by the absorbing party in a business combination are measured at their carrying amounts at the combination date as recorded by the party being absorbed. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjustment to capital reserve. If the capital reserve is not suffi cient to absorb the difference, any excess shall be adjusted against retained earnings.

• (2) Business combinations not Involving enterprises under common control: The cost of combination for a business combination not involving enterprises under common control is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifi able assets, liabilities and contingent liabilities acquired, the difference shall be recognized as goodwill. Where the cost of combination is less than the acquiree’s interest in the fair value of the acquiree’s identifi ed assets, liabilities and contingent liabilities acquired, after the reviewing, the acquirer shall recognize the remaining difference immediately in profi t or loss for the current period.

25. Segment reporting

For the purpose of the internal organizational structure, management requirements, the internal reporting system, the Group organizes business segments, which are integral parts to the company and meet the following requirements at the same time:

• (1) this integral part has income and cost incurred in daily operating activities

• (2) The Group’s management can evaluate the operating results of this integral part periodically, and then determine the allocation of resources and evaluate its performance;

• (3) The Group can get the relevant accounting information, such as fi nancial position, operating results and cash fl ows etc, from this integral part.

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V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

26. Fair values recognition of the fi nancial instruments

• If there are fi nancial instruments of the active market, their fair values are determined by the preceding prices, and if not, the fair values are determined by adopting the estimation techniques, including to consult the latest prices in the marketing transaction by the parties who are familiar with the market and under the volunteer transaction, to consult the current fair values of the other identifi ed fi nancial assets, discounted cash fl ow techniques and options pricing modes and so on. To adopt the estimation techniques needs to apply the market parameters as many as possible instead of the relevant specifi ed parameters of the Company.

27. Preparation methods for consolidated fi nancial statements

• (1) The consolidated scope recognition principles: the Company takes the subsidiaries owning the actual controlling power and the main bodies for the special purpose into the scope of the consolidated fi nancial statements.

• (2) The accounting methods introduced in the consolidated fi nancial statements: The consolidated fi nancial statements are prepared pursuant to Enterprises accounting criteria No.33 – consolidated fi nancial statements and relevant provisions. All major inter-segment transactions, balances, income and expenses in the consolidation scope are eliminated in full on consolidation. Shareholder’s equity in the net assets of consolidated subsidiaries is identifi ed separately from the Group’s equity therein.

If any confl icts between the accounting policies or the accounting period introduced in the subsidiaries and those of the Company, the necessary adjustment shall be made to the fi nancial statements of the subsidiaries according to the accounting policies or the accounting period in the Company during the preparation of the consolidated fi nancial statements.

For those subsidiaries acquired not under common control, some few fi nancial statements are adjusted based on the fair values of the identifi able net assets after the acquisition date in preparing consolidated fi nancial statements. For those subsidiaries acquired under common control, which are considered to be existed at the opening of the consolidation period, the assets, liabilities, the operating results and cash fl ows from the opening of the consolidation period are presented in the consolidated fi nancial statement according to the original carrying amounts.

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V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

28. Signifi cant accounting policies and accounting estimates

When use the above mentioned accounting policies and accounting estimate, because of the uncertainty of operation, the Company needs to apply the judgments, estimates and assumptions to book value of inaccurate measured items, which was made on the basis of experiences of the management and consideration of other related factors. However, the actual conditions are possibly different from the estimates.

The Company makes regulatory check on above mentioned judgments, estimates and assumptions. The Company confi rms the infl uences of the accounting modifi cations in the current and future of the modifi cation time, dependently.

On balance sheet date, the key assumptions and the uncertainties leading to the possible major adjustments for the carrying amounts of the assets, liabilities in the future are as follows:

• (1) Depreciation of mining structures

The mining structures are depreciated using the estimated production volume method. The production is the production estimated according to the design of the coal well constructions. The authorities estimate the remaining years usable of the assets depreciated and the production of the coal wells.

• (2) Mining rights

Mining rights are amortized on a straight line basis over the shorter of the contractual period and their useful lives. The useful lives are estimated based on the total proven and probable reserves of coal mine. The management exercises subjective judgments involved in developing information about the total proven and probable reserves of coal mine. Proved and probable coal reserve estimates are updated at regular basis and have taken into account of recent production and technical information about each mine.

• (3) Land subsidence, restoration, rehabilitation and environmental costs One consequence of coal mining is land subsidence caused by the resettlement of the land above the underground mining sites. Depending on the circumstances, the Group may relocate inhabitants from the land above the underground mining sites prior to mining those sites or the Group may compensate the inhabitants for losses or damages from land subsidence after the underground sites have been mined. An estimate of such costs is recognized in the period in which the obligation is identifi ed and is charged as an expense in proportion to the coal extracted.

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V. SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES AND PREPARATION METHODS FOR CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

28. Signifi cant accounting policies and accounting estimates – continued

• (4) Estimated impairment of fi xed assts

When there are material changes of economic, technical or legal environment of the operation or there are great changes of market where the assets are located in the current period or in near future, or internal report showing assets performance is lower or likely to be lower than anticipation, refl ecting in assets book value is not be able to recover, then the Company will make a double-check on the assts to see whether there are any impairments of fi xed assets. When the asset-related future operating cash fl ows are less than the book value of the related assets, and thus there is a difference between the asset’s book value and recoverable value, then the Company will accrue the amount for the impairment loss. In estimating the recoverable value, the management has taken into account the expected service life of assets, discount of future operating net cash fl ow and disposal cost which are internally audited.

VI. TAXES

The major tax categories and tax rate applicable to the Group are as follows:

1. Income tax

Income tax is calculated at 25% of the total assessable income of the companies of the Group that registered in PRC.

Income tax for Yancoal Australia Pty Limited and Austar Coal Mine Pty Limited is calculated at 30% of the total assessable income of the company.

2. Value added tax

The value added tax is applicable to the product sales income of the Group. The value added tax on coal sales and other products is paid at 17% of the corresponding revenue, except for the value added tax on revenue from heating supply is calculated at 13%. The value added tax payable on purchase of raw materials and so on can offsets the tax payable on sales at the tax rate of 17%, 13%, 7%, 3%. The value added tax payable is the balance between current tax payable on purchase and current tax payable on sales.

Pursuant to State Council Regulation No. 538 “PRC Value Added Tax Temporary Statute” (Revised), the Group tax rate of revenue from sales of coal product has been altered to be 17% from 1 January, 2009. Meanwhile, value added tax paid for the purchase of machinery and equipments can offset the tax payable on sales.

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VI. TAXES – CONTINUED

2. Value added tax – continued

Pursuant to the Document (Caishui [2006] No. 139) which was jointly issued by the Ministry of Finance and the State Administration of Taxation, the coal product export refund tax preferential was cancelled and the value added tax export refund rate was 0%.

As the approval of “Jiguoshuizi [2009] No. 1 of Jining Municipal Offi ce, State Administration of Taxation, P. R. China”, Hua Ju Energy, as one of subsidiaries of the Company, can enjoy the preferential policy that VAT on electricity and heat production shall be returned 50% instantly.

3. Business tax

Business tax is applicable to coal transportation service income of the Group. Business tax is paid at the 5% of the corresponding revenue, except the business tax on revenue from coal transportation service is calculated at 3%.

4. City construction tax & education fee

Subject to all taxes applicable to domestic enterprise according to the “Reply Letter to Yanzhou Coal Mining Co., Ltd.” issued by State Administration of Taxation (Guoshuihan [2001] No. 673), city construction tax and education fee are still calculated and paid at 7% and 3%, respectively, on the total amount of VAT payable and business tax payable.

5. Resource tax

Pursuant to the “Notice of the adjustment of resource tax amount of Shandong province” (Caishui [2005] No. 86), which was jointly issued by the Ministry of Finance and the State Administration of Taxation, resource tax in Shandong province is calculated and paid at the amount of RMB3.60 per tonne.

Meanwhile, pursuant to the “Notice of the adjustment of resource tax amount of Shanxi province” (Caishui [2004] No. 187), which was jointly issued by the Ministry of Finance and the State Administration of Taxation, resource tax of Shanxi province is calculated and paid at the amount of RMB3.20 per tonne of raw coal.

Resource taxes are paid as the total of sold raw coal tonnes plus received raw coal multiplying applicable tax rate.

6. Real estate tax

The tax calculation is based on the 70% of original value of real estate with the applicable tax rate of 1.2%.

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VII. BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS

i. Subsidiaries

Name of	Place of	Registered	Business	Investment	Equity held by	Voting right held
subsidiaries	registration	capital	scope	capital	the company	by the company
I. subsidiaries acquired under common control
Qingdao Free Trade Zone	Qingdao, Shandong	RMB2,100,000	Trade and storage in	RMB2,710,000	52.38%	52.38%
Zhongyan Trade Co., Ltd.			free trade zone
Yanzhou Coal Mining Yulin	Yulin,Shaanxi	RMB1,400,000,000	Production and	RMB1,400,000,000	100.00%	100.00%
Neng Hua Co., Ltd.			sales of methanol
			and acetic acid
Yancoal Australia Pty Limited	Australia	AUD 64,000,000	Investment and	RMB403,280,000	100.00%	100.00%
			shareholding
Austar Coal Mine Pty Limited.	Australia	AUD 64,000,000	Coal mining	RMB403,280,000	100.00%	100.00%
			and sales
Yanmei Heze Neng Hua Co., Ltd.	Heze, Shandong	RMB1,500,000,000	Coal mining	RMB1,424,340,000	96.67%	96.67%
			and sales
Yankuang Shanxi Neng Hua Co., Ltd.	Jinzhong, Shanxi	RMB600,000,000	Thermoelectricity	RMB508,210,000	100.00%	100.00%
			investment, coal
			technology service
Shanxi Heshun Tianchi	Jinzhong, Shanxi	RMB90,000,000	Intensive process	RMB73,180,000	81.31%	81.31%
Energy Co., Ltd.			of coal product
Shanxi Tianhao Chemicals Co., Ltd.	Xiaoyi, Shanxi	RMB150,000,000	Production and	RMB149,770,000	99.85%	99.85%
			sales of methanol
			and coals
Shandong Hua Ju Energy Co., Ltd.	Zoucheng, Shandong	RMB288,590,000	Thermal power and	RMB426,520,000	74.00%	74.00%
			comprehensive
			use of waste heat
II. subsidiaries acquired not under	common control
Shandong Yanmei Shipping Co., Ltd.	Jining, Shandong	RMB5,500,000	Freight transportation	RMB10,570,000	92.00%	92.00%
			and coal sales

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i. Subsidiaries – continued

1. Qingdao Free Trade Zone Zhongyan Trade Co., Ltd. Qingdao Free Trade Zone Zhongyan Trade Co., Ltd. (as referred to “Zhongyan Trade’), established in the end of 1997 with the registration capital of RMB2, 100,000, was fi nanced RMB700, 000 respectively by the Zhongyan Trade, Qingdao Free Trade Huamei Industrial Trade Company (as referred to “Huamei Industrial Trade ”), China Coal Mine Equipment & Mineral Imports and Exports Corporation. (hereinafter referred to as “Zhongmei Company”). In the year 2000, Huamei Industrial Trade withdrew his investment and Zhongyan Trade and Zhongmei Company hold respectively 52.38% and 47.62% of the total fund after purchasing the investment of Huamei Industrial Trade. The corporation business licence code is 370220018000118, and the legal representative is Mr. Fan Qingqi. The company is mainly engaged in the international trade in free trade zone of Qingdao, product machining, commodity exhibition and storage, and so on.

2. Yanzhou Coal Mining Yulin Neng Hua Co., Ltd. Yanzhou Coal Mining Yulin Neng Hua Co., Ltd (as referred to “Yulin Neng Hua”) was fi nanced and established by Yulin Neng Hua, Shandong Chuangye Investment Development Co,. Ltd, China Hualu Engineering Co., Ltd in Feb. 2004. Yulin Neng Hua occupied 97% of the total capital of RMB800 million. In April 2008, Yulin Neng Hua held 100% of equity after assignment of equity from Shandong Chuangye Investment Development Co., Ltd, China Hualu Engineering Co., Ltd. In May 2008, the Company injected RMB600 million into Yulin Neng Hua and the registered capital of Yulin Neng Hua reached RMB1.4 billion. The corporation business license code is 612700100003307, and the legal representative is Mr. Yang Deyu. The company is mainly engaged in the methanol production with the capacity of 600 thousand tons per year, acetic acid production with the capacity of 200 thousand tons per year and its compatible coal mine, and the power plant and so on.

3. Yancoal Australia Pty Limited

Yancoal Australia Pty Limited (as referred to “Yancoal Australia Pty”), a wholly owned subsidiary of the Company, was established in Nov. 2004 with the actual registration capital of AUD 64 million. The corporation business licence code is 111859119 and it mainly takes responsibility of the activities such as operations, budget, investment and fi nance of the company in Australia.

1. Austar Coal Mine Pty Limited

Austar Coal Mine Pty Limited (as referred to “Austar Company”), a wholly owned subsidiary of Yancoal Australia Pty, was established in Dec. 2004 with the actual registration capital of AUD 64 million. The corporation business licence code is 111910822, and it is mainly engaged in the coal production, process, washing and sales and so on in Southland Coal Mine in Australia.

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VII. BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

i. Subsidiaries – continued

1. Yanmei Heze Neng Hua Co., Ltd. Yanmei Heze Neng Hua Co., Ltd (as referred to “Heze Neng Hua”) was established and fi nanced jointly by the Company, Coal Industry Jinan Design &Research Co., Ltd (as referred to “design institute”) and Shandong Provincial Bureau for Coal Geology in Oct. 2002 with the registration capital of RMB600 million, of which, the Company held 95.67%. In July, 2007, Heze Neng Hua increased the registration capital to RMB1.5 billion, in which, this company held 96.67%. The corporation business license code is 370000018086629, and the legal representative is Mr. Wang Xin. The company is mainly engaged in the preparation work and the coal sales in Juye Coal fi eld.

2. Yanzhou Coal Mining Shanxi Neng Hua Co., Ltd. The former of Yanzhou Coal Mining Shanxi Neng Hua Co., Ltd (as referred to “Shanxi Neng Hua”) was Yankuang Jinzhong Neng Hua Co., Ltd established jointly by Yankuang Group, Yankuang Lunan Fertilizer Plant in 2002. In Nov. 2006, Yankuang Group and Yankuang Lunan Fertilizer Plant transferred the equities of Shanxi Neng Hua to this company and thus this company held 100% in the total registration capital of RMB600 million. The corporation business license code is 140700100002399, and the legal representative is Mr. Qu Tianzhi. The company is mainly engaged in thermoelectricity investment, mining machinery and equipment and electronic products sales and the comprehensive development in coal technology service, and so on.

3. Shanxi Heshun Tianchi Energy Co., Ltd.

4. The former of Shanxi Heshun Tianchi Energy Co., Ltd (as referred to “Heshun Tianchi’) was Guyao Coal Mine found in Heshun County in 1956. In July 2003, Heshun Tianchi was fi nanced and established jointly by Shanxi Neng Hua, Heshun County State-Owned Assets Managing Co., Ltd and Jinzhong City StateOwned Assets Managing Co., Ltd with the registration capital of RMB90 million, of which, Shanxi Neng Hua held equity of 81.31%. Tianchi Coal Field in Heshun has an area of 17.91 km[2] , the design capacity of 1.20 million tons per year. The Coal Mine was put into operation in Nov. 2006. The corporation business license code is 40000105861107(2/1), and the legal representative is Mr. Ren Yi. The company is mainly engaged in raw coal exploitation, extensive coal process and other mining products production and sales and so on.

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VII. BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

i. Subsidiaries – continued

1. Shanxi Tianhao Chemicals Co., Ltd.

2. Shanxi Tianhao Chemicals Co., Ltd (as referred to “Tianhao Chemicals”) was established jointly by six shareholders of Xiaoyi City Township Enterprise Supplying & Marketing Company, Shanxi Jinhui Coke Chemical Co., Ltd, Xiaoyi City Jinda Coke Co., Ltd and 3 local natural persons in Jan. 2002 with the registration capital of RMB10.01 million. In Feb. 2004, Shanxi Neng Hua increased investment to Tianhao Chemical by RMB60 million, holding 60% equity. In Oct. 2005, the registration capital was raised to RMB150 million but the equity held by Shanxi Neng Hua was raised to 99.85% because of the withdrawal of other shareholders. The corporation business license code is 140000100095998, and the legal representative is Mr. Yin Mingde. The company is mainly engaged in methanol, coke production, development and sales, and inland transportation service.

3. Shandong Yanmei Shipping Co., Ltd.

4. The former of Shandong Yanmei Shipping Co., Ltd. (as referred to “Yanmei Shipping”) was Zoucheng Nanmei Shipping Co., Ltd established in May 1994 with the registered capital of RMB5.5 Million. The company name was changed into after “Yanmei Shipping” spent RMB105.7 million purchasing 92% of the registered capital in 2003, and Shandong Chuangye Investment and Development Co., Ltd. attained the other 8%. The corporation business license code is 370811018006234, and the legal representative is Mr. Wang Xinkun. The company is mainly engaged in provincial cargo transportation along the middle and down streams, branches of Yangtze River.

5. Shandong Hua Ju Energy Co., Ltd.

6. Shandong Hua Ju Energy Co., Ltd. (Hua Ju Energy) became a new subsidiary of the Company in this reporting period. Hua Ju Energy, approved by Shandong Economic System Reform Offi ce in 2002, was established by fi ve share holders, i.e. Yankuang Group, Shandong Zhuangye Investment Development Company, Shandong Honghe Mining Group Co., Limited and Shandong Jining Luneng Shengdi Electricity Group. Yankuang Group transferred its operational net assets RMB235.94 million, including Nantun Power Plant, Xinglongzhuang Power Plant, Baodian Power Plant, Dongtan Power Plant, Xincun Power Plant, Jier Power Plant and Electricity Company, into 174.98 million shares, i.e. 65.80% of the total shares number in Hua Ju Energy. The other share holders invested currency following the above ration, and the general capital was 250 million shares. In 2005, Shandong Jining Luneng Shengdi Electricity Group transferred its equity interest in Hua Ju Energy to Jining Shengdi Investment Management Co., Ltd. In 2008, Yankuang Group increased 38.59 million shares in Hua Ju Energy with assessed value of land use right of 12 pieces of land. After the increase of capital, the total capital was 288.59 shares, and Yankuang Group held 74% of the total equity interest. In 2009, Yankuang Group transferred all its equity interest in Hua Ju Energy to the Company, and the other share holders’ capital did not change. The Business License for Legal Person registered No. of Hua Ju Energy, mainly engaged in thermal power generation by coal slurry and gangue, sales of electricity on the grid and comprehensive use of waste heat, is 370000018085042; legal person representative is Zhao Zengyu.

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VII. BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

ii. Subsidiaries acquired under common control

1. Basic information of subsidiaries acquired under common control

Item	Name of subsidiaries	Place of registration	Registered capital	Investment capital Equity held by the company	Investment capital Equity held by the company	Business scope
1	Hua Ju Energy	Zoucheng	RMB288,590,000	426,520,000	74.00%	Production
						and sale of
						electricity

As described in note VII.1 (10), the Company acquired 74% equity interest in Hua Ju Energy held by Yankuang Group in the reporting period. Because Yankuang Group is also the controlling shareholder of the Company, so this acquisition was considered as acquisition under common control.

Hua Ju Energy is one of subsidiaries acquired through the acquisition under common control. The Consideration for the Acquisition has been paid and the procedures for the transfer of the equity interest have been completed in early 2009. The Company took 1 January, 2009 as the date of acquisition, on which the owner’s equity RMB426,520,000 of the invested enterprise was enjoyed as the initial investment cost; the price difference RMB16,672 between initial investment costs and consideration of acquisition RMB593,240,000 was adjusted and reduced in capital reserves.

1. Basic fi nancial information of Hua Ju Energy for the year of 2008 and at 1 January, 2009

Item	At 1 January 2009
Total assets	977,179,906
Total liabilities	400,806,598
Net assets	576,373,308
	For the year of 2008
Operating revenue	663,537,661
Net prof t	48,390,216
Cash f ow generated from operating activities	214,695,544
Net cash f ow	–10,988,121

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VII. BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

• iii. Translation of fi nancial statements denominated in foreign currency The asset and liability items on the balance sheet of overseas subsidiaries are converted to RMBat the spot exchange rate of the balance sheet date; other items are converted at the sport exchange rate of the day when the transaction occurs, except undistributed profi ts on shareholders’ equity. The revenue and expense items on the income statement of overseas subsidiaries are converted to RMBat the approximate rate of the spot exchange rate of the day when the transaction occurs. Exchange differences arising from the above issues are presented separately under the shareholders’ equity items. The exchange difference arsing, from actual overseas operation net investments, due to exchange rate fl uctuations shall be presented separately as foreign currency conversion differences under shareholders’ equity items. The disposal of offshore operators shall be included in profi t or loss pro rata for the current period.

Cash fl ows denominated in foreign currency or from a foreign subsidiary are translated at the spot exchange rates at the date of transaction. The effect of fl uctuations of exchange rates on cash and cash equivalents is presented separately as a reconciling item in the cash fl ow statement.

VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS

1. Bank balance and cash

Items	At 30 June 2009 At 1 January 2009 Original Exchange RMB Original Exchange RMB currency rate equivalent currency rate equivalent
Cash on hand Including: RMB USD Subtotal Cash in bank Including:RMB USD HKD EUR AUD Subtotal Other monetary assets Including: RMB USD Subtotal Total	586,482 1.0000 586,482 590,667 1.0000 590,667 20,264 6.8319 138,442 20,264 6.8346 138,496
	– – 724,924 – 729,163
	10,031,502,014 1.0000 10,031,502,014 8,496,811,130 1.0000 8,496,811,130 103,149,880 6.8319 704,709,665 130,730,381 6.8346 893,489,862 918,263,740 0.8815 809,449,487 8,261,159 0.8819 7,285,516 1,027,591 9.6408 9,906,799 1,530,648 9.659 14,784,529 36,707,877 5.5426 203,457,079 57,422,186 4.7135 270,659,474
	– 11,759,025,044 9,683,030,511
	2,975,598 1.0000 2,975,598 2,561,124 1.0000 2,561,124 1,180,637 6.8319 8,065,994 1,290,981 6.8346 8,823,339
	11,041,592 11,384,463
	11,770,791,560 9,695,144,137

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

1. Bank balance and cash – continued

• (1) See VIII.47 for details of restricted bank balance and cash.

• (2) At the end of the current period, bank balance and oversees cash of the Group is RMB254.94 million, owned by Yancoal Australia Pty, the subsidiary of the Company.

2. Transactional fi nancial assets and transactional fi nancial liabilities

• (1) Transactional fi nancial assets

Items	Fair value at Fair value at 30 June 2009 1 January 2009
Derivative Financial Assets Total	66,839,882 –
	66,839,882 –

• (2) Transactional fi nancial liabilities

Items	Fair value at Fair value at 30 June 2009 1 January 2009
Derivative Financial Liabilities Total	– 29,434,968
	– 29,434,968

• Note: With the aim of avoiding the risk of foreign currency rate fl uctuation, Yancoal Australia Pty, the subsidiary of the Company, entered into long-term foreign currency contract, which constitute cash fl ow hedging. At the balance sheet date, the derivative fi nancial assets or liabilities refl ected the fair value of related immature contracts. The fair value is margin between the public offer market rate at the balance sheet date and contracted rate.

3. Notes receivable

• (1) Notes receivable category

Notes category	At 30 June At 1 January 2009 2009
Bank acceptance bills Total	1,984,106,343 2,772,082,922
	1,984,106,343 2,772,082,922

• (2) As at 30 June, 2009, the Group had discount immature bills of RMB2.05049 billion.

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

4. Accounts receivable

• (1) The risks analysis of accounts receivable

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % Provision RMB RMB % Provision RMB
Individually signif cant amount Individually insignif cant amount with high risks after the combination of credit risk characteristics Other insignif cant amount Total	384,028,556 92.88% 10,326,048 401,620,296 90.69% 16,064,812 10,266,496 2.48% 8,063,324 14,591,518 3.30% 13,682,457 19,197,848 4.64% 241,024 26,622,287 6.01% 475,772
	413,492,900 100.00% 18,630,396 442,834,101 100.00% 30,223,041

Note: Receivables from Yancoal Australia Pty have been recovered after date, and no provision for bad debts accrued; no indicators of impairment was found through the inspection on other individually signifi cant amount of receivables, provision for bad debts has been accrued under aging-of-accounts method.

• (2) The aging analysis of accounts receivable as follows:

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount % Bad debt RMB % provision RMB provision
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total	403,226,404 97.52% 10,567,072 428,242,583 96.71% 16,540,584 3,070,179 0.74% 921,054 1,221,449 0.28% 366,435 108,094 0.03% 54,047 108,094 0.02% 54,047 7,088,223 1.71% 7,088,223 13,261,975 2.99% 13,261,975
	413,492,900 100.00% 18,630,396 442,834,101 100.00% 30,223,041

• (3) Accounts receivable due from shareholders of the Company holding more than 5% (including 5%) shares are excluded for the period.

(4) Total balance of the fi ve largest accounts receivables as up to RMB234.31 million, accounting for 57% of the total.

• (5) Accounts receivable due from related parties was RMB19.99 million, accounting for 5% of the total receivables.

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

4. Accounts receivable – continued

• (6) accounts receivable wrote of in current period

			Whether caused by
Items	Amount wrote off	Reason	related transactions
	(RMB)
Sales amount of coal	5,551,788	Long-outstanding	NO
		not be able to recover

5. Prepayments

Item	At 30 June 2009 At 1 January 2009 RMB % RMB %
Within 1 year 1 to 2 years 2 to 3 years Total	222,837,740 99.34% 110,021,423 99.76% 1,345,240 0.60% 19,408 0.02% 141,600 0.06% 237,900 0.22%
	224,324,580 100.00% 110,278,731 100.00%

• (1) Prepayments with aging over 1 year are for equipments, the Group has not taken delivery of goods.

• (2) The prepayments in the end of the current period increased by 103%, which is primarily due to prepayments for outsourced coal in large amounts.

• (3) Total balance of the fi ve largest accounts repayable as up to RMB147.02 million, accounting for 66% of the total.

• (4) Prepayments by the end of the period due from shareholders of the Company holding more than 5% (including 5%) shares are not included.

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

5. Prepayments – continued

• (5) Balance of foreign currency in prepayments

Item	At 30 June 2009 At 1 January 2009 Foreign Exchange RMB Foreign Exchange RMB currency rate equivalent currency rate equivalent
USD EUR AUD Total	3,307,097 6.8319 22,593,756 1,573,861 6.8346 10,756,710 – – – 103,181 9.6590 996,625 364,438 5.5426 2,019,934 175,883 4.7135 829,025
	– – 24,613,690 – – 12,582,360

6. Other receivables

• (1) The aging analysis of other receivables

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Bad debt RMB % provision Amount % provision
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total	132,801,822 34.24% 2,109,512 163,233,265 39.38% 2,079,158 233,026,390 60.08% 65,617,500 229,688,902 55.41% 2,795,084 4,973,104 1.28% 2,262,552 4,758,262 1.15% 171,174 17,076,344 4.40% 12,074,877 16,821,227 4.06% 11,821,227
	387,877,660 100.00% 82,064,441 414,501,656 100.00% 16,866,643

• (2) The risks analysis of other receivables

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % provision RMB % provision
Individually signif cant amount Individually insignif cant amount with high risks after the combination of credit risk characteristics Other insignif cant amount Total	199,999,997 51.56% 59,999,999 247,712,707 59.76% – 17,076,344 4.40% 12,074,877 16,811,177 4.06% 11,811,177 170,801,319 44.04% 9,989,565 149,977,772 36.18% 5,055,466
	387,877,660 100.00% 82,064,441 414,501,656 100.00% 16,866,643

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6. Other receivables – continued

• (3) See XI.3 for details of other receivables due from shareholders of the Company holding more than 5% (including 5%) shares.

• (4) Total balance of the fi ve largest other receivables amounts to RMB196.42 million, which accounts for 51% of the total.

• (5) Other receivables due from related parties was RMB19.30 million, accounting for 5% of other receivables.

7. Provision for decline in value of inventories

• (1) Inventory category

Items	At 30 June At 1 January 2009 2009
Raw materials Finished goods Total	206,687,728 231,276,064 444,413,280 591,934,106
	651,101,008 823,210,170

(2) No provision for inventory.

• (3) Ending inventory excludes mortgaged or frozen inventory.

8. Other current assets and other current liabilities

• (1) Other current assets

Items	At 30 June At 1 January 2009 2009
Land subsidence, restoration, rehabilitation and environment costs Other TOTAL	1,151,895,418 1,151,895,418 – 25,245,906
	1,151,895,418 1,177,141,324

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8. Other current assets and other current liabilities – continued

(2) Other current liabilities

Items	At 30 June At 1 January 2009 2009
Land subsidence, restoration, rehabilitation and environment costs TOTAL	967,364,952 450,978,948
	967,364,952 450,978,948

Note: The consequence of coal mining activities is land subsidence caused by the resettlement of the land above the underground mining sites. Depending on the circumstances, the Company may relocate inhabitants from the land above the underground mining sites prior to mining those sites or the Company may compensate the inhabitants for losses or damages from land subsidence after the underground sites have been mined. The prepayments are presented in profi t or loss from underground mining cost. Based on their past experiences, the management provides reserves according to the best estimation as they could make on the likely expenditures in the future, and reverse the accruals after payment.

Considering the time difference between the payment and mining exists, if the accumulated payment is more than the accruals provided, such excess of payment would be presented under current assets at the year end; if the accumulated payment is less than the accruals provided, and such shortage of payment would be presented under current liabilities at the year end.

Other current liabilities increased by 115%, which is mainly due to increase of land subsidence prepayments and arable land possess tax.

9. Available-for sales fi nancial assets

Item	Fair value at Fair value at 30 June 2009 1 January 2009
Shenergy Co., Ltd Jiangsu Lianyungang Port Co., Ltd. TOTAL	220,113,654 133,720,161 10,060,200 5,727,000
	230,173,854 139,447,161

(1) the above fair value was based on the closing price of Shanghai Stock Exchange on the balance sheet date

(2) Available-for-sale fi nancial assets increased by 65% which is mainly due to the increased share price of available for sale shares.

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10. Long-term equity investments

• (1) Long-term equity investments

Item	At 30 June At 1 January 2009 2009
Equity investments under cost method Equity investments under equity method Long-term equity investments-Total Less: provision for impairment Long-term equity investments – net	30,622,550 30,622,550 874,009,677 830,195,111 904,632,227 860,817,661 – – 904,632,227 860,817,661

• (2) Under cost method and equity method

Name of investees	Shares Ratio of Original Opening Closing proportion voting amount balance Increase balance
Under cost method Zhejiang Jiangshan Concrete Co., Ltd Yankuang Group Zoucheng Ziyuan Construction Co., Ltd. Yankuang Group Zoucheng Huaming Company Yankuang Group Zoucheng Futong Company Shenzhen City Welson Flower and Gardening Co., Ltd. Yankuang Guohong Chemical Co., Ltd. Subtotal Under equity method Huadian Zouxian Power Generation Co., Ltd. Subtotal Total	0.489% 0.489% 440,000 440,000 – 440,000 8.33% 8.33% 500,000 500,000 500,000 8.00% 8.00% 100,000 100,000 100,000 16.00% 16.00% 80,000 80,000 80,000 100,000 100,000 100,000 5.00% 5.00% 29,402,550 29,402,550 29,402,550 30,622,550 30,622,550 – 30,622,550 30.00% 30.00% 900,000,000 830,195,111 43,814,566 874,009,677 900,000,000 830,195,111 43,814,566 874,009,677
	930,622,550 860,817,661 43,814,566 904,632,227

• (3) Investment in joint venture and associated company

Name of investees	Registered Business Shares Ratio of Net assets by the Operating Net location nature proportion voting share end of the period revenue prof t
Associated company Huadian Zouxian Power Generation Co., Ltd. Total	Zoucheng Electricity power 30% 30% 2,767,317,035 1,649,125,323 146,048,554 Shandong
	2,767,317,035 1,649,125,323 146,048,554

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10. Long-term equity investments – continued

• (4) Shenzhen City Welson Flower and Gardening Co., Ltd., which was invested by the Group, has been closed, and it plans to liquidate recently.

• (5) No impairment occurred in the Company’s long-term equity investment, so no provision was made.

11. Fixed assets

• (1) Fixed assets list

Item

Exchange gain At 1 January 2009 Addition and loss Reversals At 30 June 2009

Cost price Land Buildings Mining structure Railway structure Harbour works and craft Plant, machinery and equipments Transportation equipment Others Accumulated depreciation Land Buildings Mining structure Railway structure Harbour works and craft Plant, machinery and equipments Transportation equipment Others Provision Buildings Book Value Land Buildings Mining structure Railway structure Harbour works and craft Plant, machinery and equipments Transportation equipment Others

20,637,068,240 289,759,838 144,955,820 69,909,029 21,001,874,869 42,280,094 – 7,437,027 – 49,717,121 3,564,001,476 5,546,491 1,543,468 23,198,180 3,547,893,255 3,662,912,608 – – – 3,662,912,608 1,038,345,164 1,476,526 – 8,758,439 1,031,063,251 255,804,823 – – – 255,804,823 11,536,666,604 268,809,151 135,975,325 33,412,499 11,908,038,581 433,748,364 2,818,944 – 4,539,911 432,027,397 103,309,107 11,108,726 – – 114,417,833 11,282,793,071 759,099,750 37,397,943 30,288,256 12,049,002,508 – – – – – 1,694,821,010 116,551,876 469,358 3,590 1,811,838,654 1,802,599,701 41,399,133 – – 1,843,998,834 537,188,430 6,211,511 – – 543,399,941 66,929,562 5,866,719 – – 72,796,281 6,861,596,003 556,038,353 36,928,585 28,579,689 7,425,983,252 297,225,158 22,467,343 – 1,704,977 317,987,524 22,433,207 10,564,815 – – 32,998,022 20,042,963 – – 20,042,963 – 20,042,963 – – 20,042,963 – 9,334,232,206 (469,339,912) 107,557,877 19,577,810 8,952,872,361 42,280,094 – 7,437,027 – 49,717,121 1,849,137,503 (111,005,385) 1,074,110 3,151,627 1,736,054,601 1,860,312,907 (41,399,133) – – 1,818,913,774 501,156,734 (4,734,985) – 8,758,439 487,663,310 188,875,261 (5,866,719) – – 183,008,542 4,675,070,601 (287,229,202) 99,046,740 4,832,810 4,482,055,329 136,523,206 (19,648,399) – 2,834,934 114,039,873 80,875,900 543,911 – – 81,419,811

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11. Fixed assets – continued

• (2) Among the increase amount of fi xed assets, RMB271.76 million is transferred from construction in process.

• (3) House property ownership certifi cates have not been granted to Heze Neng Hua, the subsidiary of the Company, and the cost price of relevant assets is RMB83.87 million.

• (4) There is no provision and depreciation of fi xed assets of lands, as subsidiary company Austar enjoys the permanent ownership of the land of Australia Southland Coal Mine.

• (5) As at 30 June, 2009, there were no idle nor frozen or mortgaged fi xed assets.

12. Construction in progress

• (1) List of construction in progress

Items	At 1 January Transfers upon Exchange At 30 June Proportion to Budget 2009 Additions Completion realignment 2009 budget RMB RMB RMB RMB RMB RMB %
Repairing construction Technical revamping Infrastructure construction Safety construction TOTAL	1,210,407,150 210,286,600 196,935,878 117,835,060 30,108,739 319,496,157 26% 83,680,397 71,289,939 32,189,060 35,600,917 – 67,878,082 81% 6,687,202,541 4,513,479,206 200,127,056 28,197,461 – 4,685,408,801 70% 343,195,886 32,270,532 94,742,993 90,126,398 – 36,887,127 11%
	8,324,485,974 4,827,326,277 523,994,987 271,759,836 30,108,739 5,109,670,167

(2) Projects funds are internally generated funds, no interest was capitalized for the year.

13. Materials held for construction of fi xed assets

Items	At 1 January At 30 June 2009 Addition Reversals 2009
Materials held for construction Equipments held for construction TOTAL	24,981,450 37,956,729 26,435,059 36,503,120 1,015,598 – – 1,015,598 25,997,048 37,956,729 26,435,059 37,518,718

Note: Materials increased by 44% due to the increase of construction materials purchased.

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14. Intangible assets

• (1) Intangible assets

Item	At 1 January Exchange At 30 June 2009 realignment Addition Disposals 2009
Cost Land use rights Mining rights Accumulated amortization Land use rights Mining rights Book value Land use rights Mining rights	1,809,948,476 15,223,764 – – 1,825,172,240 843,582,656 – – – 843,582,656 966,365,820 15,223,764 – – 981,589,584 204,015,611 1,558,529 27,419,887 – 232,994,027 125,516,035 – 8,576,371 – 134,092,406 78,499,576 1,558,529 18,843,516 – 98,901,621 1,605,932,865 13,665,235 (27,419,887) – 1,592,178,213 718,066,621 – (8,576,371) – 709,490,250 887,866,244 13,665,235 (18,843,516) – 882,687,963

(2) Land use rights

When the Company was set up, Yankuang Group invested RMB310.24 million as land use rights, RMB88.93 million for land use rights of Jining III, RMB267.53 million for land use rights of Railway Assets, RMB11.38 million for land use rights of Heshun Tianchi, RMB18.59 million for land use rights of Yulin Neng Hua and RMB68.14 million for land use rights of Heze Neng Hua.

• (3) The original land use rights of the Company are revaluated by reference to the revaluation report [97] Zhongdizi [zong] zi No.032 of China Land Consultation and Evaluation Centre with the method of cost approaching and coeffi cient-revising of benchmark land price to determine the value of the land.

Both the land use rights of Jining III and of Railway Assets are bought by Yankuang Group at evaluated amount. Land use rights of Jining III are revaluated by reference to the revaluation report Ludijia [2000] No.7 of Shandong Land Evaluation Offi ce with the method of cost approaching and coeffi cient-revising of benchmark land price. Land use rights of Railway Assets are revaluated by reference to the revaluation report [2001] Luzhengkuai Pingbaozi No. 10041 of Shandong Zheng Hexin Limited Liability CPA with the method of cost revaluation.

The land use right of the subsidiaries of the Company, Heshun Tianchi, Yulin Neng Hua and Heze Neng Hua is purchased from the local government.

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14. Intangible assets – continued

• (4) Mining rights: including mining rights RMB132.48 million of Jining III, mining rights RMB86.55 million of Southland and mining rights RMB747.34 million of Zhaolou Coal Mine. Mining rights of Jining III are purchased from Yankuang Group at evaluation price, and are revaluated by reference to the revaluation report Haidiren Pingbaozi [2000] No.11 Zong No.24 of Beijing Haidiren Resource Consulting Co., Ltd. with the method of discounting cash fl ow. Austar acquired mining rights of Southland through Southland Coal Pty limited at market value. Mining rights of Zhaolou Coal Mine are purchased by Heze Neng Hua from Yankuang Group at evaluation price, and are revaluated by reference to the revaluation report Jingwei Pingbaozi [2007] No.079 of Beijing Jingwei Assets Evaluation Co., Ltd. with the method of discounting cash fl ow

15. Goodwill

Item	At 30 June At 1 January 2009 2009
Acquisition of Yanmei Shipping Goodwill – Net	10,045,361 10,045,361
	10,045,361 10,045,361

Note: Yanmei Shipping is the subsidiary acquired in a business combination not involving enterprises under common control. The goodwill is the excess of the cost of acquisition over the Yanmei Shipping’s interest in the fair value of the identifi able net assets at the date of acquisition.

16. Long-term deferred assets

Item	At 30 June At 1 January 2009 2009
Prepayment for resource compensation fees Net	17,478,011 18,730,271
	17,478,011 18,730,271

Note: In accordance with the relevant regulations, Heshun Tianchi is required to pay resources compensation fees to the Heshun Municipal Coal Industry Bureau at a rate of RMB2.7 per tonne of raw coal mined. Heshun Tianchi has prepaid resources compensation fees equivalent to explore 10 million ton ROM coals which would be amortized according to the actual production.

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17. Deferred tax assets and deferred tax liabilities

• (1) Confi rmed deferred tax assets and deferred tax liabilities

(2)	Item	At 30 June At 1 January 2009 2009
	1. Deferred tax assets Deferred tax assets of the parent company Deferred tax assets of Yancoal Australia Deferred tax assets of Hua Ju Energy 2. Deferred tax liabilities Deferred tax liabilities of the parent company Deferred tax liabilities of Yancoal Australia 3. Net deferred tax Temporary differences	824,343,554 611,807,143 723,063,602 516,195,350 99,701,381 93,594,663 1,578,571 2,017,130
		129,144,756 76,359,054 41,998,290 19,316,617 87,146,466 57,042,437
		695,198,798 535,448,089

• 1) Temporary differences of the parent company

Item	At 30 June At 1 January 2009 2009
1. Deductible temporary differences items Land subsidence, restoration, rehabilitation and environmental costs Amortized not paid salaries and insurances Mining rights Safety fees of 2008 Weijianfei Development fund Bad debt provision Subtotal 2. Taxable temporary differences items AFS f nancial assets fair value adjustment Subtotal Net of deducted Income tax rate Deferred taxes	966,560,662 450,978,948 372,503,384 273,619,575 215,569,525 135,140,510 134,089,956 157,188,434 492,097,333 395,582,515 611,512,916 611,512,916 99,920,633 40,758,503
	2,892,254,409 2,064,781,401
	167,993,161 77,266,468 167,993,161 77,266,468 2,724,261,248 1,987,514,933 25% 25% 681,065,312 496,878,733

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17. Deferred tax assets and deferred tax liabilities – continued

• (2) Temporary differences – continued

• 2) Temporary differences of the Yancoal Australia

3)	Item	At 30 June At 1 January 2009 2009
	1. Deductible temporary differences items Not recovered loss Hedging instrument liability Development expenditure Withhold not paid salaries Amortization of assets Others Subtotal 2. Taxable temporary differences items Unrealized foreign currency prof t and loss Fixed assets recognition criteria Hedging instrument asset Others Subtotal Net of deducted Income tax rate Deferred taxes Temporary differences of the Hua Ju Energy Item	262,352,038 223,046,588 – 29,434,975 32,731,911 27,828,033 25,690,624 21,841,668 7,207,481 6,127,660 4,355,883 3,703,287
		332,337,937 311,982,211
		119,264,707 101,396,529 83,405,341 70,909,595 66,839,882 – 20,978,291 17,835,334
		290,488,221 190,141,458
		41,849,716 121,840,753 30% 30% 12,554,915 36,552,226
		At 30 June At 1 January 2009 2009
	1. Deductible temporary differences items Retirement benef t Bad debt provision Subtotal Income tax rate Deferred taxes	6,260,236 8,068,521 54,047 – 6,314,283 8,068,521 25% 25% 1,578,571 2,017,130

Note: Pursuant to regulations in Accounting Standards for Business Enterprises 2008, net of offset of deferred tax assets and deferred tax liabilities of the same company shall be presented.

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18. Other non-current assets

Items	At 30 June At 1 January 2009 2009
Deposit made on investment Prepayment for equipment Total	117,925,900 117,925,900 25,040 –
	117,950,940 117,925,900

(1) Note: The Company entered into an agreement with two independent third parties to establish a company to operate Yulin Yushuwan Coal Mine in Shaanxi. Pursuant to agreement, the Company shall pay RMB196.8 million, with RMB78.87 million still not paid by the Company. Related formalities are still in progress.

19. Provision for devaluation of assets statement

Items	At 30 June Provision of Decrease At 1 January 2009 the period Reversal Others 2009
Bad debt provision Fixed assets devaluation provision Total	47,089,684 65,210,723 6,053,782 5,551,788 100,694,837 20,042,963 – – 20,042,963 – 67,132,647 65,210,723 6,053,782 25,594,751 100,694,837

20. Short-term loan

Type of loan Currency	At 30 June At 1 January 2009 2009
Short-term loan RMB Total	– 120,000,000
	– 120,000,000

21. Notes payable

Items	At 30 June At 1 January 2009 2009
Commercial note payable Total	79,220,742 175,662,080
	79,220,742 175,662,080

Note: Notes payables reduced by 55% in the period, mainly due to the decrease of materials purchasing of the Company and decrease of payments by commercial acceptance bill.

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22. Accounts payable

(1) Accounts payable

Items	At 30 June At 1 January 2009 2009
Total Including: over 1 year	709,872,366 853,641,767
	25,331,521 142,491,357

• (2) Large amount accounts payable aging over 1 year mainly is last payment payable for equipment, and there is no large amount of accounts payable after the period.

• (3) Accounts payable in the end of the current period payable to shareholders of the Group holding more than 5% (including 5%) shares are excluded for the period.

• (4) Foreign currency balance in accounts payable

Item	At 30 June 2009 At 1 January 2009 Foreign Exchange Equivalent Foreign Exchange Equivalent currency rate RMB currency rate RMB
USD AUD Total	361,529 6.8319 2,469,930 653,998 6.8346 4,469,815 3,963,508 5.5426 21,968,139 4,326,774 4.7135 20,394,249
	24,438,069 – – 24,864,064

23. Advances from customers

• (1) Advances from customers

Item	At 30 June At 1 January 2009 2009
Total Including: over 1 year	869,085,938 795,653,798
	30,622,166 43,149,345

• (2) Advances from customers aging over 1 year is presented due to customers did not pick up coals after advance payments.

• (3) Advances from customers in the end of the current period payable to shareholders of the Group holding more than 5% (including 5%) shares are excluded for the period.

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24. Salaries and wages payable

At 1 January Addition for Payment for At 30 June Items 2009 this period the period 2009	At 1 January Addition for Payment for At 30 June Items 2009 this period the period 2009	At 1 January Addition for Payment for At 30 June Items 2009 this period the period 2009
Salary (including bonus, allowance and subsidies) 333,976,893 1,403,997,582 1,464,960,322 273,014,153 Staff welfare 335,191 77,003,679 77,338,870 – Social insurance 53,858,308 445,568,401 420,088,323 79,338,386 including: 1.Medical insurance 4,598,059 38,457,869 37,061,593 5,994,335 2. Basic pension insurance 42,564,396 344,619,508 335,077,463 52,106,441 3. Unemployment insurance 5,301,957 24,880,772 20,923,297 9,259,432 4.Injury insurance – 25,028,027 15,690,172 9,337,855 5.Maternity insurance 1,393,896 12,582,225 11,335,798 2,640,323 Housing fund 2,587,097 106,053,289 106,737,937 1,902,449 Union fund and Staff education fund 61,693,544 54,236,435 43,186,677 72,743,302 Other 7,825,918 433,393 2,444,509 5,814,802 Total 460,276,951 2,087,292,779 2,114,756,638 432,813,092 Taxes payable At 31 December, At 1 January Item Tax rate 2008 2008 Value added tax 17%, 13%, 7% 199,112,656 220,287,764 Business tax 3%, 5% (2,487,964) 4,597,781 Income tax 25% 285,674,465 431,821,657 Price reconciliation fund 33,376,921 34,081,169 Others (48,529,362) 41,437,436 Total 467,146,716 732,225,807
	Tax rate	At 31 December, At 1 January 2008 2008 199,112,656 220,287,764 (2,487,964) 4,597,781 285,674,465 431,821,657 33,376,921 34,081,169 (48,529,362) 41,437,436 467,146,716 732,225,807
Value added tax Business tax Income tax Price reconciliation fund Others Total	17%, 13%, 7% 3%, 5% 25%

25. Taxes payable

Note: Taxes decreased by 36% compared with that of last period, mainly due to decrease of income tax payable in this period.

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26. Dividend payable

Type of loan	At 30 June At 1 January 2009 2009
Dividend payable Total	1,967,360,000
	1,967,360,000

Note: The annual general meeting of 2008 of the Company decided to distribute cash dividends of RMB1967.36 million. By 30 June, 2009, the dividends had not been paid.

27. Other payables

• (1) Other payables

			At 30 June	At 1 January
Item			2009	2009
Total			1,943,335,962	2,198,497,459
Including: aging over	1	year	176,731,218	490,602,389

Note: Large amount other payable with aging over 1 year is use fee of coal resource; large amount payable is not paid after the period.

• (2) See XI.3 for details of payables due to shareholders of the Group holding more than 5% (including 5%) shares.

• (3) Other payables with large amount by the end of the period

Item	Payable Age Nature RMB
Yankuang Group Co., Ltd. Zhongmei International Engineering Beijing Huayu Company Yankuang Group Donghua Construction Company Coal Industry Shijiazhuang Design Institute Tiandi Technology Company Total	556,431,369 Within 1 year Resources compensation fees, Project funds etc. 15,861,486 Within 1 year, 1 to 2 years Design fee 14,556,331 Within 1 year, 1 to 2 years Housing repairing fees 12,140,327 1 to 2 years Main preparing shop technical updating fee 9,449,468 Within 1 year Main preparing shop technical updating fee 608,438,981

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27. Other payables – continued

• (4) Foreign currency balance in other payables

Item	At 30 June 2009 At 1 January 2009 Foreign Exchange Equivalent Foreign Exchange Equivalent currency rate RMB currency rate RMB
AUD Total	63,832,687 5.5426 353,799,051 54,281,879 4.7135 255,857,637
	– – 353,799,051 – – 255,857,637

28. Non-current liabilities due within one year

• (1) Non-current liabilities due within one year

Items Long-term borrowing due within a year Long-term payable due within a year Total (2) Long-term borrowing due within a year Loan category Currency Guaranteed loan RMB Total Long-term loan Loan category Currency	Items	At 30 June At 1 January 2009 2009
	Long-term borrowing due within a year Long-term payable due within a year Total Long-term borrowing due within a year Loan category Currency	82,000,000 82,000,000 12,648,464 12,648,464
		94,648,464 94,648,464
		At 30 June At 1 January 2009 2009
		82,000,000 82,000,000
		82,000,000 82,000,000
		At 30 June At 1 January 2009 2009
Guaranteed loan RMB Total		165,000,000 176,000,000
		165,000,000 176,000,000

29. Long-term loan

Note: All guaranteed loan of the Group by the end of this period is guaranteed by Yankuang Group.

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30. Long-term payable

Items	At 30 June At 1 January 2009 2009
Payable for acquisition of Jining III’s mining rights Total	12,031,276 12,031,276
	12,031,276 12,031,276

31. Share capital

Shareholders names/class	At 30 June 2009 At 1 January 2009 Amount % Amount %
Listed shares with restricted trading conditions Shares held by state-owned legal person Subtotal shares with trading moratorium conditions Shares without trading moratorium A shares H shares Subtotal of shares without trading moratorium Total share capital	2,600,000,000 52.86% 2,600,000,000 52.86% 2,600,000,000 52.86% 2,600,000,000 52.86% 360,000,000 7.32% 360,000,000 7.32% 1,958,400,000 39.82% 1,958,400,000 39.82% 2,318,400,000 47.14% 2,318,400,000 47.14%
	4,918,400,000 100.00% 4,918,400,000 100.00%

• (1) The share reform plan has been implemented by 3 April, 2006. On the fi rst trading day after the completion of the share reform, the shares owned by Yankuang Group, the sole unlisted share holder of the Company, became tradable. However, Yankuang Group committed that it will not sell these shares in 48 months after the implementation of the reform.

• (2) The share capital has been verifi ed by Deloitte Touche Tohmatsu Certifi ed Public Accountants Ltd. (formerly known as Deloitte Touche Tohmatsu Shanghai CPA) on capital verifi cation report Deshibao (Yan)zi No. 588, capital verifi cation Deshibao (Yan)zi (98) No. 439, capital verifi cation Deshibao (Yan)zi (01) No. 006 and capital verifi cation Deshibao (Yan)zi (01) No.040, and Deshibao (Yan)zi (04) No.037, and Deshibao (Yan)zi (05) No.0031. Each share has a par value of RMB1.

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32. Capital reserves

Items	At 1 January At 30 June 2009 Addition Reversals 2009
Share premium Other capital reserves Total	3,198,811,050 – 593,243,100 2,605,567,950 1,867,544,289 126,568,715 – 1,994,113,004 5,066,355,339 126,568,715 593,243,100 4,599,680,954

Note: Increase in capital reserves for the period was caused by the change of fair value of available-for-sale fi nancial assets and cash fl ow hedging contract held by the Group. Decrease in share premium for the period was caused by the acquisition of Hua Ju Energy under common control. See VII.2 for more details.

33. Surplus reserves

Items	At 1 January At 30 June 2009 Addition Reversals 2009
Statutory common reserve fund Total	2,820,975,750 – – 2,820,975,750 2,820,975,750 – – 2,820,975,750

34. Special reserve

Items	At 1 January At 30 June 2009 Addition Reversals 2009
Weijianfei Safety fee Specif c development fun Total	395,582,514 96,514,818 – 492,097,332 157,188,434 128,686,424 23,098,478 262,776,380 611,512,916 – – 611,512,916 1,164,283,864 225,201,242 23,098,478 1,366,386,628

Note: Special reserves like Work Safety Expenses, Weijianfei etc, which were previously presented in the special reserves in surplus reserve of owner’s equity, now are presented in special reserve of owner’s equity, and be restated under retroactive method. See Note IV.1. The increase in current period is the special reserves in the period.

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35. Undistributed profi ts

Items	At 30 June At 1 January 2009 2009
Closing balance of last period Add: retroactive adjustment from accounting policy change (Note IV.1) Acquisition under common control Opening balance Add: Net prof t for the year Less: Appropriations to statutory common reserve fund Distribution of dividend Dividend payable to former substantial shareholder of Hua Ju Energy Closing balance including: proposed cash dividend Minority interest Subsidiary Proportion of minority interest	12,847,985,379 8,014,289,398 (190,949,220) (184,855,662) 53,019,219 67,041,335 12,710,055,378 7,896,475,071
	1,903,947,505 6,323,984,340 – 630,531,033 1,967,360,000 836,128,000 34,965,000 43,745,000 12,611,677,883 12,710,055,378
	– 2,002,325,000
	At 30 June 2009 At 1 January 2009
Shanxi Tianhao 0.15% Yanmei Shipping 8.00% Zhongyan Company 47.62% Heze Neng Hua 3.33% Hua Ju Energy 26.00% Total	– 50,525 1,108,418 928,292 3,874,454 3,835,760 43,722,864 45,057,104 166,048,564 149,857,060
	214,754,300 199,728,741

36. Minority interest

Note: The owner’s equity caused by loss of Shanxi Tianchi and Shanxi Tianhao, the subsidiariesof the Group, is carried by the Company.

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37. Operation revenue and operation cost

Items	Items	Items	January-June January-June 2009 2008
Principal operations 9,251,429,876 12,414,537,670 Other operations 412,445,017 499,171,330 Total 9,663,874,893 12,913,709,000 Principal operations cost 4,780,453,033 5,290,429,901 Other operations cost 457,324,664 542,347,237 Total 5,237,777,697 5,832,777,138 (1) Principal operations – Classif cation by sector January-June 2009 January-June 2008 Items Operation revenue Operation cost Operation revenue Operation cost Coal mining 9,021,376,615 4,586,456,326 12,229,609,109 5,121,684,657 Electricity power 103,761,318 84,131,070 63,697,805 48,026,129 Heating supply 9,824,893 4,246,667 5,444,061 2,653,869 Other 116,467,050 105,618,970 115,786,695 118,065,246 Total 9,251,429,876 4,780,453,033 12,414,537,670 5,290,429,901			9,251,429,876 12,414,537,670 412,445,017 499,171,330
			9,663,874,893 12,913,709,000
			4,780,453,033 5,290,429,901 457,324,664 542,347,237
			5,237,777,697 5,832,777,138
	Coal mining Electricity power Heating supply Other Total	9,021,376,615 4,586,456,326 12,229,609,109 5,121,684,657 103,761,318 84,131,070 63,697,805 48,026,129 9,824,893 4,246,667 5,444,061 2,653,869 116,467,050 105,618,970 115,786,695 118,065,246
		9,251,429,876 4,780,453,033 12,414,537,670 5,290,429,901

• (2) Principal operations – Classifi cation by product

Items	January-June 2009 January-June 2008 Operation revenue Operation cost Operation revenue Operation cost
Revenue from domestic sales of coal products Revenue from export sales of coal products Sales of coal purchased from other companies Revenue from railway transportation services Sales of electricity power Sales of heating supply Total	8,221,267,868 4,123,750,982 10,630,169,192 4,005,044,422 580,816,018 253,166,298 833,655,252 389,259,695 219,292,729 209,539,046 765,784,665 727,380,540 116,467,050 105,618,970 115,786,695 118,065,246 103,761,318 84,131,070 63,697,805 48,026,129 9,824,893 4,246,667 5,444,061 2,653,869
	9,251,429,876 4,780,453,033 12,414,537,670 5,290,429,901

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37. Operation revenue and operation cost – continued

• (3) Principal operations – Classifi cation by area

Area	January-June 2009 January-June 2008 Operation revenue Operation cost Operation revenue Operation cost
Domestic International Total	8,670,613,858 4,527,286,735 11,580,882,418 4,901,170,206 580,816,018 253,166,298 833,655,252 389,259,695
	9,251,429,876 4,780,453,033 12,414,537,670 5,290,429,901

(4) Total sales amount of the 5 largest customers in the fi rst half in 2009 is RMB2,531.28 million, which accounts for 26% in total revenue.

38. Operating taxes and surcharges

Items Proportion	January-June January-June 2009 2008
Business tax 3%, 5% City construction tax 7% Education fee 3% Local education fee 1‰ Resource tax Total	5,658,044 5,097,320 86,538,224 83,228,773 37,909,043 47,866,103 11,920,220 – 60,947,585 60,098,721
	202,973,116 196,290,917

39. Financial expenses

Items	January-June January-June 2009 2008
Interest expenses Less: interest income Add: exchange loss Add: other expenses Total	9,793,969 21,809,211 96,933,055 52,623,358 (89,381,773) 13,298,706 15,102,484 5,023,640
	(161,418,375) (12,491,801)

Note: Financial expenses of this period decreased by 1,192% compared with the same period of last year; mainly due to increase of exchange loss caused by change of exchange rate and interest income.

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40. Impairment loss

Items	January-June January-June 2009 2008
Bad debt Total	59,156,941 28,374,527
	59,156,941 28,374,527

41. Investment income

(1) Sources of investment income

Items	January-June January-June 2009 2008
Long-term equity investment income under equity method Investment from disposal of long-term equity investment Income of external entrust loan Total	43,814,566 (47,191,502) – 2,389,284 – 132,230,000
	43,814,566 87,427,782

• (2) Long-term equity investment income under equity method

Items	January-June 2009 January-June 2008 Reason of change
Total Including: Huadian Zouxian Power Generation Co., Ltd.	43,814,566 (47,191,502) 43,814,566 (47,191,502) The investee got a prof t

42. Non-operating income

Items	January-June January-June 2009 2008
Gain on disposal of non-current assets Including: gain on disposal of f xed assets Government grant income Other Total	543,048 8,050,058 543,048 8,050,058 1,043,166 7,073,880 2,651,233 908,718
	4,237,447 16,032,656

Note: Government grant income

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42. Non-operating income – continued

Items	January-June 2009 January-June 2008 Approval number
Taxation reduce on product from comprehensive use of resources Total	1,043,166 7,073,880 Jiguoshuiliupizi [2009] No. 1 1,043,166 7,073,880

43. Non-operating expenses

Items	January-June January-June 2009 2008
Loss on disposal of non-current assets Including: loss on disposal of f xed assets Donation expenditure Other Total	4,991,925 903,582 4,991,925 903,582 50,000 18,150,000 2,008,620 1,969,100
	7,050,545 21,022,682

44. Income taxes

(1) Income taxes

Items	January-June January-June 2009 2008
Current tax expense Deferred tax expense Total	868,989,463 1,580,396,608 (206,429,693) –
	662,559,770 1,580,396,608

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

44. Income taxes – continued

• (2) Current tax expense

Items	Amount
Total prof t of the year	2,596,536,213
Add: increase of tax adjustment	777,011,223
Less: decrease of tax adjustment	69,786,271
Taxable income of the year	3,303,761,165
Statutory income tax rate (25%)	25%
Income tax payable of the year	825,940,291
Add: other adjustment	43,049,172
Current tax expense	868,989,463

• (3) Income taxes decreased by 58%; mainly due to decrease of profi t.

45. Computation process of basic and diluted earnings per share

Items	No.	January-June 2009	January-June 2008
Net prof t attributable to shareholders of the parent company	1	1,903,947,505	3,783,041,583
Extraordinary gain attributable to parent company	2	(2,109,823)	97,221,943
Net prof t attributable to shareholders of the parent company, excluding extraordinary gain	3 = 1-2	1,906,057,328	3,685,819,640
Total shares at the beginning of the period	4	4,918,400,000	4,918,400,000
Shares added through reserves fund addition and shares dividend distribution addition (I)	5	–	–
Shares added by issuing and debt-to-equity (II)	6	–	–
Shares added (II) months from next month to the end of the period	7	–	–
Shares decreased by buy-back and shares shrink	8	–	–
Month from the next month to the end of the month	9	–	–
Duration the period	10	6	6
Weighted average of common shares issued	11 = 4+5+6×7÷10-8×9÷10	4,918,400,000	4,918,400,000
Basic earning per share (I)	12 = 1÷11	0.3871	0.7692
Basic earning per share (II)	13 = 3÷11	0.3875	0.7494
Common shares interest with diluted potential which is recognized as expenses	14	–	–
Converting fee	15	–	–
Income tax rate	16	25%	25%
Shares added through stock warrant and option exertion	17	–	–
Diluted earning per share (I)	18 = [1+(14-15)×(1-16)]÷(11+17)	0.3871	0.7692
Diluted earning per share (II)	19 = [3+(14-15)×(1-16)]÷(11+17)	0.3875	0.7494

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46. Other comprehensive income

Items	January-June January-June 2009 2008
Translation of overseas operation statements AFS f nancial assets Cash f ow heding Subtotal Income tax inf uence Net Amount transferred into prof t and loss of the current period	127,232,776 4,096,074 90,726,693 (200,509,062) 83,605,279 –
	301,564,748 (196,412,988) (85,933,090) 48,898,443
	215,631,658 (147,514,545) (11,735,778) –

Note: Other comprehensive income increased by 246%, mainly due to the substantial increase of cash fl ow hedging, fair value of AFS fi nancial assets and Australian dollar market rate.

47. Cash fl ow

(1) Cash and cash equivalents are including

Items	January-June January-June 2009 2008
Cash Including: cash on hand Deposits that can be readily drawn on demand Other currency that can be readily drawn on demand Cash equivalents Including: investment in bonds mature in three months Cash and cash equivalents balance Including: Cash and cash equivalents with limited use right by parent company or subsidiaries of the Group	8,645,089,412 8,444,144,457 724,924 729,162 8,641,388,890 8,440,854,170 2,975,598 2,561,125 – 8,645,089,412 8,444,144,457 3,125,702,148 1,250,999,680

Note: The Company’s deposit RMB10,000,000 of Work Safety Expenses and RMB1,000,000 of Environmental Improvement Expenses; the amount RMB94,610,000 represents the deposits placed in banks secured for the future payment of land subsidence, restoration, rehabilitation and environmental costs of Austar under the request of Australia government; Fixed deposit of RMB3,012,030,000 of the Company and deposit of RMB8,060,000 placed in the back. The above mentioned limited amounts the group totals up to RMB3,125,700,000.

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VIII. NOTES TO CONSOLIDATION FINANCIAL STATEMENTS – CONTINUED

47. Cash fl ow

• (2) Cash received/paid relating to operating activities/investment/fi nance activities

• 1) Other cash relating to operating activities

2)	Items	January-June January-June 2009 2008
	Interest income Government grants Received cash from funds paid on other’s behalf Total Other cash paid relating to operating activities	96,933,055 52,623,358 1,043,166 7,073,880 26,857,129 7,430,612
		124,833,350 67,127,850

3)	Items	January-June January-June 2009 2008
	Payments for selling and administrative expenses Disposal of f xed assets Others Total Other cash paid relating to investing activities Items	676,415,014 698,853,576 904,574 19,185,783 95,164,126 64,686,705
		772,483,714 782,726,064
		January-June January-June 2009 2008
	Addition of f xed certif cates of deposit and restricted deposit Total	1,874,702,468 999,104,888 1,874,702,468 999,104,888

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47. Cash fl ow – continued

(3) Supplemental information of consolidated cash fl ow statement

Items	January-June January-June 2009 2008
1. Reconciliation of net prof t to net cash f ow from operating activities Net prof t Add: Provision of impairment of assets Depreciation of f xed assets Amortization of intangible assets Amortization of long-term deferred expenses Losses on disposal of f xed assets, intangible and other long-term assets (“-” represents gain) Financial expenses (“-” represents gain) Loss arising from investments (“-” represents gain) Inf uence of deferred taxes assets (“-” represents increase) Decrease in inventories (“-” represents increase) Decrease in receivables under operating activities (“-” represents increase) Increase in payables under operating activities (“-” represents decrease) Net cash f ow from operating activities 2. Changes in cash and cash equivalents Cash, closing Less: Cash, opening Net addition in cash and cash equivalents	1,931,258,064 3,789,983,297 59,156,941 28,374,527 759,099,749 612,774,370 27,419,887 10,926,494 1,252,260 (243,685) 4,448,878 (7,146,475) 9,793,969 21,809,211 (43,814,566) (87,427,782) (206,429,693) 172,109,162 (181,621,827) 560,374,308 759,866,113 346,826,772 (482,978,895)
	3,621,495,731 4,464,315,348
	8,645,089,412 8,457,879,149 8,444,144,457 5,735,100,500
	200,944,955 2,722,778,649

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IX. NOTES TO STATEMENTS OF FINANCIAL STATEMENTS OF THE PARENT COMPANY

1. Accounts receivable

• (1) The risks analysis of accounts receivable

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % Provision RMB % Provision
Individually signif cant amount Individually insignif cant amount with high risks after the combination of credit risk characteristics Other insignif cant amount Total	258,151,206 93.31% 10,326,048 401,620,296 94.25% 16,064,812 10,158,402 3.67% 7,782,632 13,642,190 3.20% 12,787,175 8,356,936 3.02% 272,711 10,858,740 2.55% 434,350
	276,666,544 100.00% 18,381,391 426,121,226 100.00% 29,286,337

• (2) The aging analysis of accounts receivable

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % provision RMB % provision
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total	266,508,142 96.33% 10,598,759 412,479,036 96.80% 16,499,161 3,070,179 1.11% 874,745 1,221,449 0.29% 366,435 – – – – – – 7,088,223 2.56% 6,907,887 12,420,741 2.91% 12,420,741
	276,666,544 100.00% 18,381,391 426,121,226 100.00% 29,286,337

• (3) Accounts receivable due from shareholders of the Group holding more than 5% (including 5%) of the total shares are not included for the period.

• (4) Total balance of the fi ve largest accounts receivables totals up to RMB234.31 million, which accounts for 85% of the total.

• (5) Accounts receivable due from related parties was RMB19.99 million, accounting for 7% of amount receivable.

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IX. NOTES TO STATEMENTS OF FINANCIAL STATEMENTS OF THE PARENT COMPANY – CONTINUED

1. Accounts receivable – continued

(6) Accounts receivable wrote of in current period

			Whether caused by
	Amount wrote off	Reason	related transactions
Items	(RMB)
Sales amount of coal	5,523,961	Long-outstanding	NO
		not be able to recover

2. Other receivables

• (1) Aging analysis of other receivables

Items	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % provision RMB % Provision
Within 1year 1 to 2 years 2 to 3 years Over 3 years Total	98,742,372 17.50% 1,584,313 316,448,464 57.58% 2,021,993 443,783,683 78.67% 65,617,500 211,547,243 38.49% 2,324,174 4,525,104 0.80% 2,262,552 4,758,262 0.87% 171,174 17,074,877 3.03% 12,074,877 16,811,177 3.06% 11,811,177
	564,126,036 100.00% 81,539,242 549,565,146 100.00% 16,328,518

(2) Risk analysis of other receivables

Item	At 30 June 2009 At 1 January 2009 Amount Bad debt Amount Bad debt RMB % provision RMB % provision
Individually signif cant amount Individually insignif cant amount with high risks after the combination of credit risk characteristics Other insignif cant amount Total	416,775,673 73.88% 59,999,999 413,195,170 75.19% – 17,074,877 3.03% 12,074,877 16,811,177 3.06% 11,811,177 130,275,486 23.09% 9,464,366 119,558,799 21.76% 4,517,341
	564,126,036 100.00% 81,539,242 549,565,146 100.00% 16,328,518

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2. Other receivables – continued

• (3) There is no other receivables wrote off in this period

• (4) Account receivables due from shareholders of the Group holding more than 5% (including 5%) of the total shares

Name of company	At 30 June 2009 At 1 January 2009 Amount Bad Debt Amount Bad Debt of debt Provision of debt Provision RMB RMB
Yankuang Group Total	8,800,000 – 8,800,000 –
	8,800,000 – 8,800,000 –

• (5) Total balance of the fi ve largest other receivables amounts to RMB397.44 million, which accounts for 70% of other receivables.

• (6) Foreign currency balance in other receivables

Item	At 30 June 2009 At 1 January 2009 Original Exchange RMB Original Exchange RMB currency rate equivalent currency rate equivalent
USD Total	31,717,390 6.8319 216,690,039 31,717,390 6.8346 216,775,674
	31,717,390 – 216,690,039 31,717,390 – 216,775,674

• (7) Other receivables due from related parties were RMB284.19 million by the end of the period, accounting for 50% of other receivables.

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3. Long-term equity investment

• (1) Long-term equity investment

Items	At 30 June At 1 January 2009 2009
Long-term equity investments under cost method Long-term equity investments under equity method Long-term equity investments – Total Less: provision for impairment Long-term equity investments – net	4,176,073,346 3,749,557,098 874,009,677 830,195,111
	5,050,083,023 4,579,752,209
	5,050,083,023 4,579,752,209

• (2) Under cost method and equity method

Name of Shares Ratio of investees proportion voting share	Original Opening Closing amount balance Additions Balance
Under cost method Qingdao Zhongyan 52.38% 52.38% Yanmei Shipping 92.00% 92.00% Heze Neng Hua 96.67% 96.67% Yancoal Australia Pty 100.00% 100.00% Yulin Neng Hua 100.00% 100.00% Shanxi Neng Hua 100.00% 100.00% Zhejiang Jiangshan Concrete Co., Ltd 0.49% 0.49% Hua Ju Energy 74.00% 74.00% Subtotal Under equity method Huadian Zouxian Power Generation Co., Ltd. 30.00% 30.00% Subtotal Total	1,100,000 2,709,903 – 2,709,903 3,430,000 10,575,733 – 10,575,733 1,450,000,000 1,424,343,543 – 1,424,343,543 403,281,954 403,281,954 – 403,281,954 776,000,000 1,400,000,000 – 1,400,000,000 600,000,000 508,205,965 – 508,205,965 440,000 440,000 – 440,000 593,243,100 – 426,516,248 426,516,248
	3,827,495,054 3,749,557,098 426,516,248 4,176,073,346
	900,000,000 830,195,111 43,814,566 874,009,677
	900,000,000 830,195,111 43,814,566 874,009,677
	4,727,495,054 4,579,752,209 470,330,814 5,050,083,023

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IX. NOTES TO STATEMENTS OF FINANCIAL STATEMENTS OF THE PARENT COMPANY – CONTINUED

3. Long-term equity investment – continued

• (3) Investment in associates and joint ventures

Name of Registered Business Shares Ratio of investees location nature proportion voting share	Net assets by the end Operating income for Net prof t for the of the period the current period current period
Joint venture Huadian Zouxian Tangcun, Electricity power 30% 30% Power Zoucheng resources Generation Shandong and related Co., Ltd. development Total	2,767,317,035 1,649,125,323 146,048,554
	2,767,317,035 1,649,125,323 146,048,554

(4) No impairment occurred in long-term equity investment of the Company, so there is no provision.

4. Operation revenue and operation cost

Items	2008 2007
Principal operations revenue Other operations revenue Total Principal operations cost Other operations cost Total	8,546,793,747 11,482,778,528 400,856,185 469,420,625
	8,947,649,932 11,952,199,153
	4,552,945,897 4,867,696,777 433,000,911 491,421,092
	4,985,946,808 5,359,117,869

• (1) Principal operations – Classifi cation by business

Items	January-June 2009 January-June 2008 Operation Operation revenue Operation cost revenue Operation cost
Coal mining Other Total	8,430,326,697 4,447,326,926 11,366,991,833 4,749,631,531 116,467,050 105,618,971 115,786,695 118,065,246
	8,546,793,747 4,552,945,897 11,482,778,528 4,867,696,777

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4. Operation revenue and operation cost – continued

(2) Principal operations – Classifi cation by product

Items	January-June 2009 January-June 2008 Operation Operation revenue Operation cost revenue Operation cost
Revenue from domestic sales of coal products Revenue from export sales of coal products Sales of coal purchased from other companies Revenue from railway transportation services Total	8,162,848,187 4,214,687,617 10,508,146,590 3,997,285,222 48,185,781 23,100,263 93,060,579 24,965,769 219,292,729 209,539,046 765,784,664 727,380,540 116,467,050 105,618,971 115,786,695 118,065,246
	8,546,793,747 4,552,945,897 11,482,778,528 4,867,696,777

(3) Principal operations – Classifi cation by area

Area	January-June 2009 January-June 2008 Operation Operation revenue Operation cost revenue Operation cost
Domestic International Total	8,498,607,966 4,529,845,634 11,389,717,949 4,842,731,008 48,185,781 23,100,263 93,060,579 24,965,769
	8,546,793,747 4,552,945,897 11,482,778,528 4,867,696,777

(4) Total sales amount of the 5 largest customers in the period is RMB2,531.28 million, which accounts for 28% in total revenue.

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IX. NOTES TO STATEMENTS OF FINANCIAL STATEMENTS OF THE PARENT COMPANY – CONTINUED

5. Investment income

• (1) Sources of investment income

Items	January-June January-June 2009 2008
Long-term equity investment income under equity method Income of entrust loan Total	43,814,566 (47,191,500) 133,002,877 221,157,931
	176,817,443 173,966,431

• (2) Long-term equity investment income under equity method

Item	January-June January-June 2009 2008 Reason of change
Investment income from associates under equity method	43,814,566 (47,191,500) Increase of prof t

• (3) There is no major limit on recovery of investment income to the Group.

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X. SEGMENT REPORT

1. Main report – business segment

(1) Segment information in January-June, 2009

Items	Railway Methanol and Coal mining transportation electricity Inter-segment business business business elimination Total
Total income – External – Inter-segment Total Items	– – – – – 9,432,308,792 116,467,050 115,099,050 – 9,663,874,893 128,112,416 34,756,799 355,497,522 (518,366,736) –
	9,560,421,208 151,223,849 470,596,572 (518,366,736) 9,663,874,893
	Railway Methanol and Coal mining transportation electricity Inter-segment business business business elimination Total
Result of operation Segment result of operation Unallocated corporate expenses Unallocated corporate income Share of loss of an associate Interest expenses Prof t before income taxes Income taxes Prof t for the period	4,238,029,904 12,085,963 175,981,329 – 4,426,097,196 – – – – (1,804,329,919) – – – – (61,970,040) – – 43,814,566 – 43,814,566 – – – – (9,793,969) – – – – 2,593,817,834 – – – – (662,559,770) – – – – 1,931,258,064

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X. SEGMENT REPORT – CONTINUED

1. Main report – business segment – continued

(1) Segment information in January-June, 2009 – continued

	Railway Methanol and Coal mining transportation electricity business business business Total
Assets – – – – Segment assets 16,526,492,358 720,283,537 4,095,545,216 21,342,321,111 Investment of an associate – – 874,009,677 874,009,677 Unallocated corporate assets – – – 12,000,965,414 Total 16,526,492,358 720,283,537 4,969,554,893 34,217,296,202 Liabilities Segment liabilities 4,024,916,488 49,504,826 2,736,693,150 6,811,114,464 Unallocated corporate liabilities – – – 900,411,879 Total 4,024,916,488 49,504,826 2,736,693,150 7,711,526,343 Railway Methanol and Coal mining transportation electricity business business business Headquarters Total	– – – – 16,526,492,358 720,283,537 4,095,545,216 21,342,321,111 – – 874,009,677 874,009,677 – – – 12,000,965,414
	16,526,492,358 720,283,537 4,969,554,893 34,217,296,202
	4,024,916,488 49,504,826 2,736,693,150 6,811,114,464 – – – 900,411,879
	4,024,916,488 49,504,826 2,736,693,150 7,711,526,343
Capital expenditures 741,035,402 – 112,095,308 1,508,673 854,639,383 Amortization of mining rights 18,843,516 – – – 18,843,516 Amortization of prepaid lease payments 7,552,626 – 1,023,745 – 8,576,371 Depreciation 642,538,135 46,048,130 67,736,114 2,777,370 759,099,749 Net prof t from long-term assets sold 123,794 – (4,572,671) – (4,448,877) Reversal of Write-off 5,380,984 – 672,798 – 6,053,782

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X. SEGMENT REPORT – CONTINUED

1. Main report – business segment – continued

(2) Segment information in January-June, 2009

Items	Railway Methanol and Coal mining transportation electricity Inter-segment business business business elimination Total
Total income – External – Inter-segment Total Items	12,615,934,648 148,269,062 149,505,290 – 12,913,709,000 22,691,258 32,482,367 266,824,633 (321,998,258) –
	12,638,625,906 180,751,429 416,329,923 (321,998,258) 12,913,709,000
	Railway Methanol and Coal mining transportation electricity Inter-segment business business business elimination Total
Result of operation Segment result of operation Unallocated corporate expenses Unallocated corporate income Share of loss of an associate Interest expenses Prof t before income taxes Income taxes Prof t for the period	6,947,680,673 62,686,183 70,565,006 – 7,080,931,862 – – – – (1,608,186,694) – – – – (33,364,553) – – (47,191,500) – (47,191,500) – – – – (21,809,210) – – – – 5,370,379,905 – – – – (1,580,396,608) – – – – 3,789,983,297

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X. SEGMENT REPORT – CONTINUED

1. Main report – business segment – continued

(2) Segment information in January-June, 2009 – continued

	Railway Methanol and Coal mining transportation electricity business business business Total
Assets Segment assets 15,862,093,498 779,795,218 3,679,468,445 20,321,357,161 Investment of an associate – – 850,370,268 850,370,268 Unallocated corporate assets – – – 9,516,990,984 Total 15,862,093,498 779,795,218 4,529,838,713 30,688,718,413 Liabilities Segment liabilities 4,305,680,361 25,996,446 2,564,842,105 6,896,518,913 Unallocated corporate liabilities – – – 864,852,681 Total 4,305,680,361 25,996,446 2,564,842,105 7,761,371,594 Railway Methanol and Coal mining transportation electricity business business business Headquarters Total	15,862,093,498 779,795,218 3,679,468,445 20,321,357,161 – – 850,370,268 850,370,268 – – – 9,516,990,984
	15,862,093,498 779,795,218 4,529,838,713 30,688,718,413
	4,305,680,361 25,996,446 2,564,842,105 6,896,518,913 – – – 864,852,681
	4,305,680,361 25,996,446 2,564,842,105 7,761,371,594
Capital expenditures 1,576,113,213 – 289,892,922 1,840,126 1,867,846,261 Amortization of mining rights 1,945,658 – – – 1,945,658 Amortization of prepaid lease payments 8,154,093 – 615,711 – 8,769,804 Depreciation 577,430,338 43,621,529 54,919,170 2,049,544 678,020,581 Net prof t from long-term assets sold – – – – – Reversal of Write-off 7,146,475 – – – 7,146,475

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS

i. RELATIONSHIP OF RELATED PARTIES

1. Parent Company

2. (1) Basic information of parent company

	Type of	Registration	Statutory
Parent Company	ownership	address	representative	Business nature	Ultimate control party
Yankuang Group	State-owned	Zoucheng,	Geng Jiahuai	Industry processing	Shandong State-owned
		Shandong			Assets Supervision
					and Administration
					Commission

• (2) The registered capital of the Parent Company and its changes.

Parent Company	At 1 January At 30 June 2009 Addition Reversals 2009
Yankuang Group	3,353,388,000 – – 3,353,388,000

• (3) The proportion and changes of equity interest of the parent company

Parent Company	Shareholding amount Shares proportion Ratio of voting share At 30 June At 1 January At 30 June At 1 January At 30 June At 1 January 2009 2009 2009 2009 2009 2009
Yankuang Group	2,600,000,000 2,600,000,000 52.86% 52.86% 52.86% 52.86%

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

i. RELATIONSHIP OF RELATED PARTIES – continued

2. Subsidiaries

(1) Basic information of subsidiaries

	Type of	Type of	Registration	Statutory	Business
Subsidiaries	ownership	enterprise	address	representative	nature
Qingdao Free Trade Zone	holding subsidiary	limited liability	Shandong	Fan Qingqi	Trade and storage
Zhongyan Trade Co., Ltd
Yanzhou Coal Mining Yulin	wholly-owned subsidiary	limited liability	Shaanxi	Yang Deyu	Production and
Neng Hua Co., Ltd					sales of methanol
					and acetic acid
Yancoal Australia Pty Limited	wholly-owned subsidiary	limited liability	Australia		Investment and
					shareholding
Austar Coal Mine Pty Limited.	wholly-owned subsidiary	limited liability	Australia		Coal mining and
					sales
Yanmei Heze Neng Hua	holding subsidiary	limited liability	Shandong	Wang Xin	Coal mining and
Co., Ltd					sales
Yankuang Shanxi Neng Hua	wholly-owned subsidiary	limited liability	Shanxi	Qu Tianzhi	Thermoelectricity
Co., Ltd					investment, coal
					technology service
Shanxi Heshun Tianchi Energy	holding subsidiary	limited liability	Jinzhong	Ren Yi	Intensive process
Co., Ltd					of coal product
Shanxi Tianhao Chemicals	holding subsidiary	limited liability	Shanxi	Yin Mingde	Production and
Co., Ltd					sales of methanol
					and coals
Shandong Yanmei Shipping	holding subsidiary	limited liability	Shandong	Wang Xinkun	Freight transportation
Co., Ltd.					and coal sales
Shandong Hua Ju Energy	holding subsidiary	limited liability	Shandong	Zhao Zengyu	Electricity generating
Company Ltd.					by coal slurry and
					gangue, electricity
					sales to the grid,
					comprehensive use
					of waste heat

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

i. RELATIONSHIP OF RELATED PARTIES – continued

2. Subsidiaries – continued

• (2) The registered capital of the Parent Company and its changes.

Subsidiaries	At 1 January At 30 June 2009 Addition Reversal 2009
Qingdao Free Trade Zone Zhongyan Trade Co., Ltd Yanzhou Coal Mining Yulin Neng Hua Co., Ltd Yancoal Australia Pty Limited Austar Coal Mine Pty Limited. Yanmei Heze Neng Hua Co., Ltd Yankuang Shanxi Neng Hua Co., Ltd Shanxi Heshun Tianchi Energy Co., Ltd Shanxi Tianhao Chemicals Co., Ltd Shandong Yanmei Shipping Co., Ltd. Shandong Hua Ju Energy Company Ltd.	RMB2.1 – – RMB2.1 million million RMB1,400 – RMB1,400 million million AUD 64 – – AUD 64 million million AUD 64 – – AUD 64 million million RMB1,500 – – RMB1,500 million million RMB600 – – RMB600 million million RMB90 – – RMB90 million million RMB150 – – RMB150 million million RMB5.5 – – RMB5.5 million million RMB288.59 – – RMB288.59 million million

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

i. RELATIONSHIP OF RELATED PARTIES – continued

2. Subsidiaries – continued

• (3) The proportion and changes of equity interest of subsidiaries

	Shareholding amount	Shareholding amount	Shares	proportion	Ratio of	voting share
	At 30 June	At 1 January	At 30 June	At 1 January	At 30 June	At 1 January
	2009	2009	2009	2009	2009	2009
Subsidiaries	RMB’000	RMB’000
Qingdao Free Trade	1,100	1,100	52.38%	52.38%	52.38%	52.38%
Zone Zhongyan
Trade Co., Ltd
Yanzhou Coal Mining	1,400,000	776,000	100.00%	97.00%	100.00%	97.00%
Yulin Neng Hua
Co., Ltd
Yancoal Australia	AUD 64 million	AUD 64 million	100.00%	100.00%	100.00%	100.00%
Pty Limited
Austar Coal Mine	AUD 64 million	AUD 64 million	100.00%	100.00%	100.00%	100.00%
Pty Limited.
Yanmei Heze Neng	1,450,000	1,450,000	96.67%	96.67%	96.67%	96.67%
Hua Co., Ltd
Yankuang Shanxi	600,000	600,000	100.00%	100.00%	100.00%	100.00%
Neng Hua Co., Ltd
Shanxi Heshun Tianchi	73,180	73,180	81.31%	81.31%	81.31%	81.31%
Energy Co., Ltd
Shanxi Tianhao	149,770	149,770	99.85%	99.85%	99.85%	99.85%
Chemicals Co., Ltd
Shandong Yanmei	5,060	5,060	92.00%	92.00%	92.00%	92.00%
Shipping Co., Ltd.
Shandong Hua	21,357	0	74.00%	0.00%	74.00%	0.00%
Ju Energy
Company Ltd.

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

i. RELATIONSHIP OF RELATED PARTIES – continued

1. Joint venture and associated company

2. (1) Joint venture and associated company

Joint venture and associated Type of Registration Statutory Business Registered Shares Ratio of Registered company enterprise address representative nature capital proportion voting share No.	Joint venture and associated Type of Registration Statutory Business Registered Shares Ratio of Registered company enterprise address representative nature capital proportion voting share No.
Huadian Zouxian limited liability Zoucheng Zhong Electricity RMB3 billion 30% 30% 66930776-8 Power Generation Tonglin power Co., Ltd. Financial information Joint venture and January-June 2009 associated company At 30 June 2009 Operating Assets Liabilities Equity revenue Net prof t
Huadian ZouxianPower GenerationCo., Ltd.	7,180,563,061 4,267,197,472 2,913,365,589 1,649,125,323 146,048,554

• (2) Financial information

ii. RELATED PARTY TRANSACTIONS

1. Materials purchasing

Pricing principle Names of Type of related of related party related parties party transactions transactions	January-June 2009 January-June 2008 Amount Proportion Amount Proportion
Yankuang Group Materials purchasing Market prices or and its aff liates agreed prices	219,883,949 23% 204,827,662 22%

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

ii. RELATED PARTY TRANSACTIONS – continued

1. Goods sales

3.	Pricing principle Names of Type of related of related party related parties party transactions transactions	January-June 2009 January-June 2008 Amount Proportion Amount Proportion
	Yankuang Group Coal sales Market prices or and its aff liates agreed prices Yankuang Group Materials sales Market prices or and its aff liates and services agreed prices Yankuang Group Electricity and Market prices or and its aff liates heating supply agreed prices Guarantee Amount Assurance Provider Secured party guaranteed	614,963,578 7% 586,853,000 5% 151,378,672 57% 202,609,000 43% 102,611,874 21% 109,515,575 31%
		Guarantee day Guarantee forward from maturity date Completion
	Yankuang Group Shanxi Neng Hua RMB247 million 23 December, 2005 19 February, 2018 No

1. Assets acquisition from related party

(1) Acquisition of Jining III

On 1 January, 2001, the Company acquired Jining III according to the “Agreement for Acquisition of Jining III” signed with Yankuang Group at the consideration of RMB2,450.9 million and mining rights of RMB132.48 million totally RMB2,583.38 million.

By 30 June, 2009, the Company had paid RMB2,556.88 million to Yankuang Group for the above acquisition, including the consideration of RMB2450.9million and the mining rights of RMB105.98million.

According to the agreement, the Company will pay the interest-free consideration for the cost of mining rights over ten years by equal instalments before 31 December of each year commencing from year 2001. The Company is scheduled to pay for the mining rights of RMB13.248million as the ninth instalment before 31 December, 2009.

The consideration for the acquisition is determined according to revaluation price.

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

ii. RELATED PARTY TRANSACTIONS – continued

1. Assets acquisition from related party – continued

(2) Acquisition of Hua Ju Energy

In this reporting period, the Company acquired 74% equity interest in Hua Ju Energy held by Yankuang Group with a consideration of RMB593.2 million. The consideration was determined on the basis of the assessed net assets value of Hua Ju Energy in Assessment Report on Intending Transferred Equity Interest in Shandong Hua Ju Energy Company Ltd. Held by Yankuang Group Co., Ltd. (Zhongweihuadechengpingbaozi (2008) No.1146). The transfer has been approved by State-owned Assets Supervision and Administration Commission of Shandong Provincial Government, the Company has fully paid the consideration and the process of transfer has been completed. Stated in Note VII, this transaction constituted an acquisition under common control.

5. Transaction with key management

Total amount of salaries paid to key management (including salaries, welfare and subsidies paid in the form of cash, goods and others), for the period ended 30 June, 2009 is RMB2,780,000. RMB1,910,000 was paid as compared with same period in 2008.

6. Free use of trade mark

The trade mark of the Company, registered and owned by controlling shareholder, can be freely used by the Company.

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

ii. RELATED PARTY TRANSACTIONS – continued

7. Other transactions

Pursuant to an agreement signed between the Company and Yankuang Group, Yankuang Group manages the social insurances of the two companie. Amount charged to expenses of the Company for the period ended 30 June, 2009 and 2008 are RMB370.48 million and RMB348.28 million respectively.

Yankuang Group manages the retired personnel, retirement benefi ts expenses are determined by the Company within the contracted limit. Amount charged to expenses of the Company for the period ended 30 June, 2009 and 2008 are RMB248.27 million and RMB153.56 million respectively.

Pursuant to an agreement signed by the Company and Yankuang Group, the department and subsidiaries of Yankuang Group provided the following services and charged related service fees during the year, and the transaction prices were determined by market price, government price and agreement price:

Items	(RMB’000) January-June January-June 2009 2008
Construction service Road transportation fee Gas and heating expenses Buildings management fee Technicians training fee Repairs service Public facilities expenses Employee’ benef ts Others Subtotal	7,801 3,752 3,618 4,387 1,690 1,300 8,250 6,350 1,300 1,000 7,094 10,136 995 585 6,833 4,423 3,490 2,685
	41,071 34,618

During the period of 2008 and 2007, the Company and Yankuang Group have made payments or collected receipts to or from individual third party or government authorities on behalf of each other, in respect of goods purchased, services received, other expenses. These payments and receipts made on behalf of the other have been recorded in other payables.

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

iii. Amount due to or from related party

1. 2. 3. 4.	Notes receivables Related parties	At 30 June At 1 January 2009 2009
	Parent company Other enterprises under the control of the same parent company Total Accounts receivables Related parties	10,000,000 300,000 146,145,399 198,969,582
		156,145,399 199,269,582
		At 30 June At 1 January 2009 2009
	Other enterprises under the control of the same parent company Total Prepayment Related parties	19,986,597 6,030,040
		19,986,597 6,030,040
		At 30 June At 1 January 2009 2009
	Other enterprises under the control of the same parent company Total Other receivables Related parties	– 6,000,000
		– 6,000,000
		At 30 June At 1 January 2009 2009
	Parent company Other enterprises under the control of the same parent company Total	10,491,789 61,369,919 8,811,252 11,408,559
		19,303,041 72,778,478

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

iii. Amount due to or from related party – continued

1. Other current assets

6. 7. 8.	Related parties	At 30 June At 1 January 2009 2009
	Parent company Total Short-term loan Related parties	– 25,245,906
		– 25,245,906
		At 30 June At 1 January 2009 2009
	Parent company Total Notes payable Related parties	– 120,000,000
		– 120,000,000
		At 30 June At 1 January 2009 2009
	Other enterprises under the control of the same parent company Total Accounts payable Related parties	1,967,708 15,321,244
		1,967,708 15,321,244
		At 30 June At 1 January 2009 2009
	Other enterprises under the control of the same parent company Total	43,797,108 43,501,564
		43,797,108 43,501,564

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XI. RELATIONSHIP OF RELATED PARTIES AND THEIR TRANSACTIONS – CONTINUED

iii. Amount due to or from related party – continued

1. Advances from related parties

10. 11. 12.	Related parties	At 30 June At 1 January 2009 2009
	Other enterprises under the control of the same parent company Total Other payables Related parties	100,629,073 43,435,575
		100,629,073 43,435,575
		At 30 June At 1 January 2009 2009
	Parent company Other enterprises under the control of the same parent company Total Long-term payables mature within one year Related parties	556,431,369 572,641,496 154,725,362 498,631,907
		711,156,731 1,071,273,403
		At 30 June At 1 January 2009 2009
	Parent company Total Long-term payables Related parties	12,648,464 12,648,464
		12,648,464 12,648,464
		At 30 June At 1 January 2009 2009
	Parent company Total	12,031,276 12,031,276
		12,031,276 12,031,276

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XII. CONTINGENCY

By 30 June, 2009, the Group has no contingency.

XIII. CAPITAL COMMITMENTS

1. Ongoing investment agreement and related fi nancial expenditure The Company entered into an agreement with two independent third parties to establish a company to operate Yulin Yushuwan Coal Mine in Shaanxi. Pursuant to agreement, the Company shall pay RMB196.80 million (see Note VIII.18), and the Company has paid RMB117.93 million. By 30 June, 2009, RMB78.87 million is still not paid by the Company. Related formalities are still in progress.

2. By 30 June, 2009, long-term purchase of assets expenditure contracted for but not paid are as follows (RMB’000):

Commitments	30 June 31 December 2009 2008
Recognition for coal mines management of Shandong Province to be paid to secure for the environment protection work done by the Company Capital expenditure Total	797,200 797,200 170,700 142,400
	967,920 939,600

1. Except for the above stated commitments, the Company has no other signifi cant commitments to claim by 30 June, 2009.

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XIV. EVENTS AFTER BALANCE SHEET DATE

1. In July, 2009, the Company entered a contract with Shandong Chuangye Investment Development Co., Ltd, Jining Shengdi Investment Management Co., Ltd and natural person Wu Zenghua to acquire 61.02 million shares of Hua Ju Energy at the price of RMB2.8353 per share, and the total consideration was RMB173.01 million. By the publishing date of this report, the consideration has been paid and the transactional process has been completed.

2. On 13 August, 2009, the Company announced that a binding Scheme Implementation Agreement was entered into with Felix Resources Limited, a corporation incorporated in Australia with shares listed on ASX. According to the agreement, the Company will acquire all equity interest in Felix at the price of AUD 16.95 per share. The total Scheme Consideration for the Transaction will be approximately AUD3,333 million (equivalent to approximately RMB18.951 billion). The implementation of the Transaction is conditional upon the satisfaction or waiver of the Conditions specifi ed in the Scheme Implementation Agreement, which include but are not limited to obtaining the approvals of the Shareholders, the Federal Court of Australia and PRC relevant regulatory authorities in respect of the Transaction and as described in the Scheme Implementation Agreement. Felix are mainly engaged in exploring and extracting coal resources, operating, identifying, acquiring and developing resource related projects that primarily focus on coal in Australia. By the reporting date, the transactional process has not been completed.

3. Except for the above stated events, the Group has no other signifi cant events after balance sheet day to claim.

XV. OTHER IMPORTANT EVENTS

1. Mining rights

According to the Mining Rights Agreement signed between the Company and the Group in October, 1997 and supplementary agreement signed in February, 1998, an annual fee as compensation for mining rights of fi ve coal mines owned by the Group is RMB12.98million which is subject to new regulations after a ten-year period if they comes out.

Pursuant to Implement Scheme about Experimental Units of Coal Mining Rights Paid which was approved by the State Council and jointly issued by the Ministry of Finance, State Resources Department and Development and Reformation Committee in September, 2006, despite free mining rights developed and invested by the country, enterprises should pay mining price on the base of reevaluation on remaining resource reserves. Shandong Province is one of the experimental provinces carrying paid mining rights. By the reporting day, the Company has been making an assessment on remaining reserves. Pursuant to decision made in the sixth meeting of the Forth Board, compensation fee of RMB5 is accrued at per ton raw coal minded since 1 January, 2008 for the fi ve coal mines owned by the Company, which is subject to detailed scheme when it comes out. RMB135.14million has been accrued according to this criterion during the period from 1 January, 2008 to 31 December, 2008. RMB80.43million has been accrued according to this criterion during the period from 1 January, 2009 to 30 June, 2009.

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XVI. SUPPLEMENT

1. Differences regulation of net profi t and net assets

Items	Equity attributable to parent Net prof t attributable to parent company shareholders company shareholders At 30 June 2009 At 1 January 2009January-June 2009 January-June 2008
As per the f nancial statements prepared under IFRS 1) Business combination adjustment under common control (Note 1) 2) Special reserve (Note 2) 3) Deferred tax effect (Note 3) 4) Others As per PRC CASs	27,029,086,926 26,755,126,084 2,025,689,238 3,912,640,577 (611,295,144) 14,451,921 3,026,732 23,427,499 (641,698,523) (717,103,397) (128,452,274) (167,960,406) 529,794,638 521,377,158 8,552,869 16,003,152 (14,872,338) (8,950,034) (4,869,060) (1,069,239) 26,291,015,559 26,564,901,732 1,903,947,505 3,783,041,583

Note 1: Pursuant to PRC CASs, when relevant assets and subsidiaries purchased from Yankuang Group come into combination with enterprises under the common control, assets and liabilities of acquiree should be measured based on book value on the date of acquisition. The difference of book value of net assets acquired by the Company and consolidation price paid was adjusted as capital reserves. While pursuant to IFRS, acquirees recognize identifi able assets, liabilities and contingent liabilities according to the fair value on the date of acquisition. When the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifi able asset, liabilities and contingent liabilities, the difference shall be recognized as goodwill.

Furthermore, in accordance with CASs, for acquisition under common control, when preparing the consolidated fi nancial statements of the acquiring period, the opening balance of the consolidated balance sheet and related items in comparative fi nancial statements should be adjusted, regarding that the reporting entity existing before the current period. While according to IFRS, the opening balance of consolidated balance sheet and related items in comparative fi nancial statements would not be adjusted.

Note 2: As stated in Note V.19, in accordance with relevant regulations of the Chinese authorities, the company has to accrue for special reserve like Weijianfei, Work Safety expenses ect, which are presented in cost of expenses of the period and the amount that has been accrued but not used are presented in special reserve of owner’s equity. Fixed assets purchased with special reserve, are presented in related assets and full amount carryover accumulated depreciation. On the basis of IFRS, expenses are confi rmed when it occurs in the period, and relevant capital expenditures are confi rmed as fi xed assets when occurs and depreciated following corresponding depreciating method.

Note 3: The differences between the above mentioned standards bring differences in tax and infl uence of minority equity.

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XVI. SUPPLEMENT – CONTINUED

2. Extraordinary gain

Pursuant to Explanation to Information Disclosure and Presentation Rules for Companies Making Public Offering No.1 Extraordinary Gain, extraordinary gain of the Company is as follows:

Items	January-June January-June 2009 2008
Gain and loss from disposal of non current assets Government subsidies Net of gains and losses from entrusted loam Other net non-business revenues and expenses excluding the above items Others Subtotal Less: taxes effect Net extraordinary gain-total including: attributable to shareholders of the parent company	(4,448,877) 7,146,476 1,043,166 7,073,880 – 132,230,000 592,613 (19,210,382) – 2,389,284
	(2,813,098) 129,629,258
	703,275 (32,407,315)
	(2,109,823) 97,221,943
	(2,109,823) 97,221,943

3. Return on net assets and earnings per share

Pursuant to Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 computation and disclosure of Return on net assets and earnings per share issued by China Securities Regulatory Commission, the diluted/weighted average return on net assets and earnings per share of the Company are as follows:

(1) The current period

Return on net assets Earnings per share Weighted Earnings per Diluted earnings Prof t during the report period Diluted average share, basic per share	Return on net assets Earnings per share Weighted Earnings per Diluted earnings Prof t during the report period Diluted average share, basic per share
Net prof t attributable to shareholders of the parent company Net prof t attributable to shareholders of the parent company, excluding extraordinary gain	7.18% 6.92% 0.3871 0.3871
	7.19% 6.93% 0.3875 0.3875

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XVI. SUPPLEMENT – CONTINUED

3. Return on net assets and earnings per share – CONTINUED

(2) The last period

	Return on net assets	Return on net assets	Earnings per share	Earnings per share
		Weighted	Earnings Diluted earnings
Prof t during the report period	Diluted	average	per share	per share
Net prof t attributable to
shareholders of the
parent company	16.63%	16.25%	0.7692	0.7692
Net prof t attributable to
shareholders of the
parent company,
excluding extraordinary gain	16.20%	15.83%	0.7494	0.7494

XVII. APPROVE OF FINANCIAL STATEMENTS

The fi nancial statements have been approved by board of directors on 21 August, 2009.

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CONDENSED CONSOLIDATED STATEMENT OF INCOME

FOR THE SIX MONTHS ENDED 30 JUNE, 2009

Notes	Six months ended 30 June 2009 2008 RMB’000 RMB’000 (unaudited) (unaudited)
Gross sales of coal 5 Railway transportation service income Gross sales of electricity power Gross sales of heat supply Total revenue Transportation costs of coal 5 Cost of sales and service provided 6 Cost of electricity power Cost of heat supply Gross prof t Selling, general and administrative expenses Share of prof t/(loss) of an associate Other income 7 Interest expenses 8 Prof t before income taxes 9 Income taxes 10 Prof t for the period Equity attributable to: Equity holders of the Company Minority interests Earnings per share, basic 12 Earnings per ADS, basic 12	8,829,078 12,065,436 112,587 111,931 101,817 – 7,380 –
	9,050,862 12,177,367 (186,833) (219,511) (4,437,963) (5,172,474) (84,131) – (4,246) –
	4,337,689 6,785,382 (1,840,102) (1,422,260) 43,815 (47,192) 198,685 194,152 (20,844) (15,827)
	2,719,243 5,494,255 (671,112) (1,580,496)
	2,048,131 3,913,759
	2,025,690 3,912,641 22,441 1,118
	2,048,131 3,913,759
	RMB0.41 RMB0.80
	RMB4.12 RMB7.96

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE, 2009

	Six months ended 30 June 2009 2008 RMB’000 RMB’000 (unaudited) (unaudited)
Prof t for the period Other comprehensive income (after income tax): Available-for-sale investment: Change in fair value Deferred taxes Cash f ow hedge: Cash f ow hedge reserve recognized Deferred taxes Exchange difference arising on translation of foreign operations Other comprehensive income/(loss) for the period Total comprehensive income for the period Equity attributable to: Equity holders of the Company Minority interests	2,048,131 3,913,759 90,727 (200,509) (22,682) 50,127
	68,045 (150,382) 87,408 – (28,883) –
	58,525 – 89,063 2,861
	215,633 (147,521)
	2,263,764 3,766,238
	2,241,323 3,765,120 22,441 1,118
	2,263,764 3,766,238

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CONDENSED CONSOLIDATED BALANCE SHEET

AT 30 JUNE, 2009

Notes	At 30 June At 31 December, 2009 2008 RMB’000 RMB’000 (unaudited) (audited)
ASSETS CURRENT ASSETS Bank balances and cash Term deposits Restricted cash 13 Bills and accounts receivable 14 Inventories Prepayments and other receivables 15 Prepaid lease payments Prepayment for resources compensation fees 16 Derivative f nancial instruments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Mining rights 18 Prepaid lease payments Prepayment for resources compensation fees 16 Property, plant and equipment 19 Goodwill Investments in securities 20 Interests in an associate Restricted cash 13 Deposit made on investment Deferred tax assets 22 TOTAL NON CURRENT ASSETS TOTAL ASSETS	8,645,119 8,439,578 3,011,995 1,153,385 19,066 18,823 2,202,836 2,977,266 651,101 819,599 1,694,464 1,567,210 16,972 15,296 2,559 3,240 66,840 –
	16,310,952 14,994,397 1,031,502 1,039,707 692,518 628,119 14,919 15,490 14,743,357 14,149,446 500,342 298,650 260,796 139,887 874,010 830,195 94,612 78,791 117,926 117,926 199,962 46,023
	18,529,944 17,344,234
	34,840,896 32,338,631

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CONDENSED CONSOLIDATED BALANCE SHEET – CONTINUED

AT 30 JUNE, 2009

Notes	At 30 June At 31 December, 2009 2008 RMB’000 RMB’000 (unaudited) (audited)
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Bills and accounts payable 21 Other payables and accrued expenses Provision for land subsidence, restoration, rehabilitation and environmental costs 17 Amounts due to Parent Company and its subsidiary companies 25 Unsecured bank borrowings – due within one year Derivative f nancial instruments Taxes payable TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Amounts due to Parent Company and its subsidiary companies – due after one year 25 Unsecured bank borrowings – due after one year Deferred tax liabilities 22 TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES CAPITAL AND RESERVES 23 SHARE CAPITAL RESERVES EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY MINORITY INTEREST TOTAL EQUITY TOTAL LIABILITIES AND EQUITY	743,328 910,127 4,616,688 2,698,256 967,365 450,979 683,169 706,328 82,000 82,000 – 29,435 286,633 419,866
	7,379,183 5,296,991 3,626 7,253 165,000 176,000 42,501 41,777
	211,127 225,030
	7,590,310 5,522,021
	4,918,400 4,918,400 22,110,687 21,836,724
	27,029,087 26,755,124 221,499 61,486
	27,250,586 26,816,610
	34,840,896 32,338,631

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE, 2009

	Attributable Future Statutory Investment Cash f ow to equity Share development common Translation revaluation hedge Retained holders of Minority Share capital premium fund reserve fund reserve reserve reserve earnings the Company interest Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (note 23) (note 23)
Balance at 1 January, 2008 Total comprehensive income for the period (unaudited) Appropriations to reserves (unaudited) Dividends (unaudited) Acquisition of additional interest in the equity of a subsidiary (unaudited) Balance at 30 June, 2008 Balance at 1 January, 2009 Total comprehensive income for the period (unaudited) Appropriations to reserves (unaudited) Dividends (unaudited) Acquisition of a subsidiary (unaudited) Balance at 30 June, 2009	4,918,400 2,981,002 2,587,105 2,037,940 (13,942) 260,179 – 8,646,853 21,417,537 71,075 21,488,612 – – – – 2,861 (150,382) – 3,912,641 3,765,120 1,118 3,766,238 – – 101,486 – – – – (101,486) – – – – – – – – – – (836,128) (836,128) – (836,128) – – – – – – – – – 2,506 2,506
	4,918,400 2,981,002 2,688,591 2,037,940 (11,081) 109,797 – 11,621,880 24,346,529 74,699 24,421,228
	4,918,400 2,981,002 2,969,324 2,823,175 (115,169) 57,949 (11,736) 13,132,179 26,755,124 61,486 26,816,610 – – – – 89,063 68,045 58,525 2,025,690 2,241,323 22,441 2,263,764 – – 222,538 – – – – (222,538) – – – – – – – – – – (1,967,360) (1,967,360) – (1,967,360) – – – – – – – – – 137,572 137,572
	4,918,400 2,981,002 3,191,862 2,823,175 (26,106) 125,994 46,789 12,967,971 27,029,087 221,499 27,250,586

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE, 2009

Notes	Six months ended 30 June 2009 2008 RMB’000 RMB’000 (unaudited) (unaudited)
NET CASH GENERATED BY OPERATING ACTIVITIES NET CASH USED IN INVESTING ACTIVITIES Purchase of property, plant and equipment (Increase)decrease in term deposits Settlement received from other loans receivable Expenditure for acquisition of Zhaolou Coal Mine Acquisition of Hua Ju Energy 24 Acquisition of minority interests of Yulin Increase in restricted cash Proceeds on disposal of property, plant and equipment NET CASH (USED IN) GENERATED BY FINANCING ACTIVITIES Dividend paid to the former equity holders of Hua Ju Energy Bank loans Repayment of borrowing to Parent Company NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING Effect of foreign exchange rate changes CASH AND CASH EQUIVALENTS, ENDING, REPRESENTED BY BANK BALANCES AND CASH	3,611,481 3,861,370 (826,033) (537,413) (1,858,745) 319,090 – 640,000 – (747,339) (588,676) – – (24,000) (2,204) (23,210) 15,416 9,636
	(3,260,242) (363,236)
	(47,250) – (11,000) 453,910 (120,000) –
	(178,250) 453,910
	172,989 3,952,044
	8,439,578 4,424,561 32,552 (9,613)
	8,645,119 8,366,992

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE, 2009

1. GENERAL

Organization and principal activities

The Group represents Yanzhou Coal Mining Company Limited (the “Company”) and its consolidated subsidiaries.

The Company is established as a joint stock company with limited liability in the People’s Republic of China (the “PRC”) and operates six coal mines, namely the Xinglongzhuang coal mine, Baodian coal mine, Nantun coal mine, Dongtan coal mine, Jining II coal mine (“Jining II”) and Jining III coal mine (“Jining III”) as well as a regional railway network that links these mines with the national railway grid. These six coal mines and the railway were originally divisions of the Company’s ultimate holding company, Yankuang Group Corporation Limited (the “Parent Company”), a state-owned enterprise in the PRC. The Parent Company contributed the assets and liabilities of the Xinglongzhuang coal mine, Baodian coal mine, Nantun coal mine and Dongtan coal mine into the Company upon its formation.

The Company acquired from the Parent Company Jining II, Jining III and the assets of the special purpose coal railway transportation business (“Railway Assets”) in 1998, 2001 and 2002, respectively.

In April 2001, the status of the Company was changed to that of a sino-foreign joint stock limited company.

The Company’s A shares are listed on the Shanghai Securities Exchange (“SSE”), its H shares are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”), and its American Depositary Shares (“ADS”, one ADS represents 10 H shares) are listed on the New York Stock Exchange, Inc.

The Company holds a 52.38% interest in the registered capital of Qingdao Free Trade Zone Zhongyan Trade Co., Ltd. (“Zhongyan”), a limited liability company established and operated in the PRC. Zhongyan is engaged in the trading and processing of mining machinery.

The Company holds a 92% interest in the registered capital of Shandong Yanmei Shipping Co., Ltd. (“Yanmei Shipping”), a limited liability company established and operated in the PRC which is principally engaged in the transportation business via rivers and lakes and sale of coal and construction materials.

In 2004, the Company established Yanzhou Coal Yulin Neng Hua Co., Ltd. (“Yulin”), a 97% owned subsidiary, for the future development of the methanol projects of the Group in the Shaanxi Province in the PRC. In 2008, the Company acquired the remaining 3% equity in Yulin, and then the Company made further investment of RMB600,000,000 in Yulin in the same year..

In 2004, the Company acquired the entire interest in the Southland coal mine located in New South Wales, Australia (“Southland”) from independent third parties in 2004 for aggregate cash consideration of AUD29,377,000 (equivalent to RMB187,312,000 then). The Company has also established two wholly-owned subsidiaries in Australia, namely Yancoal Australia Pty Limited (“Yancoal”) and Austar Coal Mine Pty Limited (“Austar”), in 2004 for the Group’s future operations in Southland.

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1. GENERAL — CONTINUED

Organisation and principal activities – continued

In 2004, the Company acquired a 95.67% equity interest in Yanmei Heze Neng Hua Company Limited (“Heze”) from the Parent Company at cash consideration of RMB584,008,000. The principal activities of Heze are to conduct the initial preparation of the coal mines at the Juye coalfi eld which includes obtaining the approvals for the coal mine projects, applying rights to explore for coal and preparing the construction work of the coal mines. At 30 June, 2009, Heze has commenced construction works for the Zhaolou coal mine. The equity interests held by the Company increased to 96.67% after the increase of the registered capital of Heze in 2007.

In 2006, the Company acquired a 98% equity interest in Yankuang Shanxi Neng Hua Company Limited (“Shanxi Neng Hua”) and its subsidiaries (collectively referred as the “Shanxi Group”) from the Parent Company at cash consideration of RMB733,346,000. The principal activities of Shanxi Group are to invest in heat and electricity, manufacture and sale of mining machinery and engine products, coal mining and the development of integrated coal technology.

Shanxi Neng Hua is an investment holding company, which holds 81.31% equity interest in Shanxi Heshun Tianchi Energy Company Limited (“Shanxi Tianchi”) and approximately 99.85% equity interest in Shanxi Tianhao Chemical Company Limited (“Shanxi Tianhao”). The principal activities of Shanxi Tianchi are to exploit and sale of coal from Tianchi Coal Mine, the principal asset of Shanxi Tianchi. Shanxi Tianchi has completed the construction of Tianchi Coal Mine and commenced production by the end of 2006. Shanxi Tianhao is established to engage in the production of methanol and other chemical products, coke production, exploration and sales. The construction of the methanol facilities by Shanxi Tianhao commenced in March 2006 and it has commenced trial production as at 30 June, 2009. In 2007, the Company further acquired the remaining 2% equity interest in Shanxi Neng Hua at cash consideration of RMB14,966,000.

During the period, the Company acquired 74% equity interest in Shandong Hua Ju Energy Company Limited (“Hua Ju Energy”) with a consideration of RMB593,243,000. Hua Ju Energy is a joint stock limited company established in the PRC, the principal business is the supply of electricity and heat by utilizing coal gangue and coal slurry produced from coal mining process. In July 2009, the Company entered into acquisition agreements with three shareholders of Hua Ju Energy, pursuant to which, the Company agrees to acquire 21.14% equity interest in Hua Ju Energy with the consideration of RMB173,010,000. At the date of issue of these fi nancial statements, the equity transfer and approval from governmental authority have been completed and the Company has fully settled the consideration in respect of the acquisition.

2. BASIS OF PREPARATION

The condensed consolidated fi nancial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” and with the applicable disclosure requirements of Appendix 16 of the Rules Governing the Listing of Securities on the SEHK.

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3. SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated fi nancial statements have been prepared on the historical cost basis except for certain fi nancial instruments, which are measured at fair value, as appropriate.

The accounting policies adopted are consistent with those followed in the preparation of the Group’s annual fi nancial statements for the year ended 31 December, 2008, except a number of accounting policies that are adopted by the Company and effective for annual periods beginning on or after 1 January, 2009.

In the current period the Group had applied, for the fi rst time, the new standards and interpretations and revised/ amended standards and interpretations (the new “IFRSs”) issued by the International Accounting Standards Board (the “IASB”) and the International Financial Reporting Interpretations Committee (the “IFRIC”) of the IASB, which are effective for the Group’s fi nancial year beginning on 1 January, 2009. The new IFRSs that had material effect on the fi nancial statements are as follow:

• IAS 1 (Revised)-Presentation of Financial Statements: IAS 1 (Revised) materially changes the presentation of the Group’s fi nancial statements. The amendments affect the presentation of owner changes in equity and introduce a statement of comprehensive income. The Group have the option of presenting items of income and expenses and components of other comprehensive income either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate income statement followed by a statement of comprehensive income). The amendment does not affect the fi nancial position or results of the Group but gives rise to additional disclosures. The Group adopted IAS 1 (Revised) since 1 January, 2009, and presented items of income and expenses and components of other comprehensive income in two separate statements (a separate income statement followed by a statement of comprehensive income).

• IFRS 8-Operating Segments: The accounting policy for identifying segments is based on internal management reporting information that is regularly reviewed by the Group’s chief operating decision maker for the purposes of allocating resources to the segments and assessing their performances.

The adoption of the new IFRSs had no material effect on the results or fi nancial position of the Group for the current or prior accounting periods except the presentation disclosure. Accordingly, no prior period adjustment has been recognized.

The Group has not early applied the new standards or interpretations that have been issued but are not yet effective. The directors of the Company anticipate that the application of these standards or interpretations will have no material impact on the results and the fi nancial position of the Group.

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4. SEGMENT INFORMATION

The Group is engaged primarily in the coal mining business and the coal railway transportation business. The Company does not currently have direct export rights in the PRC and all of its export sales must be made through China National Coal Industry Import and Export Corporation (“National Coal Corporation”) or Minmetals Trading Co., Ltd. (“Minmetals Trading”) or Shanxi Coal Imp. & Exp Group Corp. (“Shanxi Coal Corporation”). The fi nal customer destination of the Company’s export sales is determined by the Company, National Coal Corporation, Minmetals Trading or Shanxi Coal Corporation. Certain of the Company’s subsidiaries are engaged in trading and processing of mining machinery and the transportation business via rivers and lakes in the PRC. No separate segment information about these businesses is presented in these fi nancial statements as the underlying gross sales, results and assets of these businesses, which are currently included in the coal mining business segment, are insignifi cant to the Group. Certain of the Company’s subsidiaries are engaged in production of methanol and other chemical products, and invest in heat and electricity.

Business segments

For management purposes, the Group is currently organized into three operating divisions-coal mining, coal railway transportation and methanol, electricity and heat supply. These divisions are the basis on which the Group reports its primary segment information.

Principal activities are as follows:

Coal mining	–	Underground mining, preparation and sales of coal
Coal railway transportation	–	Provision for railway transportation services
Methanol, electricity and	–	Production and sales of methanol and electricity and related heat
heat supply		supply services

Segment information about these businesses is presented below:

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4. SEGMENT INFORMATION — CONTINUED

INCOME STATEMENT

	For the six months ended 30 June 2009 Methanol, Coal railway electricity and Coal mining transportation heat supply Eliminations Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000	For the six months ended 30 June 2009 Methanol, Coal railway electricity and Coal mining transportation heat supply Eliminations Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
GROSS REVENUE External sales Inter-segment sales Total Inter-segment revenue is charged RESULT Segment results Unallocated corporate expenses Unallocated corporate income Share of prof t of an associate Interest expenses Prof t before income taxes Income taxes Prof t for the period	8,829,078 112,587 109,197 – 77,728 34,757 286,531 (399,016)	9,050,862 – 9,050,862 2,885,389 (285,928) 96,811 43,815 (20,844) 2,719,243 (671,112) 2,048,131
	8,906,806 147,344 395,728 (399,016)
	at prices pre-determined by the relevant governmental authority. 3,046,508 (81,605) (79,514) –
	– – 43,815 –

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4. SEGMENT INFORMATION — CONTINUED

	For the six months ended 30 June 2008 Coal railway Coal mining transportation Eliminations Consolidated RMB’000 RMB’000 RMB’000 RMB’000	For the six months ended 30 June 2008 Coal railway Coal mining transportation Eliminations Consolidated RMB’000 RMB’000 RMB’000 RMB’000
GROSS REVENUE External sales 12,065,436 111,931 – Inter-segment sales – 32,483 (32,483) Total 12,065,436 144,414 (32,483) Inter-segment revenue is charged at prices pre-determined by the relevant governmental authority. RESULT Segment results 5,863,503 (108,718) – Unallocated corporate expenses Unallocated corporate income Share of loss of an associate Interest expenses Prof t before income taxes Income taxes Prof t for the period	12,065,436 111,931 – – 32,483 (32,483)	12,177,367 –
	12,065,436 144,414 (32,483)	12,177,367
		5,754,785
		(249,843) 52,332 (47,192) (15,827)
		5,494,255 (1,580,496)
		3,913,759

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5. SALES OF COAL AND TRANSPORTATION COSTS OF COAL

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Domestic sales of coal, gross Less: Transportation costs Domestic sales of coal, net Export sales of coal, gross Less: Transportation costs Export sales of coal, net Net sales of coal	8,249,349 11,233,286 150,435 126,710
	8,098,914 11,106,576
	579,729 832,150 36,398 92,801
	543,331 739,349
	8,642,245 11,845,925

Net sales of coal represents the invoiced value of coal sold and is net of returns, discounts, sales taxes and transportation costs if the sales value of coal includes transportation costs to the customers.

6. COST OF SALES AND SERVICE PROVIDED

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Materials Wages and employee benef ts Electricity Depreciation Land subsidence, restoration, rehabilitation and environmental costs Annual fee and amortization of mining rights (note 18) Other transportation cost Costs of traded coal Others	659,790 704,859 1,452,226 1,267,739 117,763 209,377 687,437 547,341 854,635 951,570 102,299 85,303 34,607 65,436 209,539 727,381 319,667 613,468
	4,437,963 5,172,474

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7. OTHER INCOME

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Interest income from bank deposits Gain on exchange rate changes Interest income from entrusted loan Others	96,810 52,311 89,248 – – 132,230 12,627 9,611
	198,685 194,152

8 INTEREST EXPENSES

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Interest expenses on: – bank borrowings wholly repayable within 5 years – bank borrowings not wholly repayable within 5 years – bills receivable discounted without recourse Deemed interest expenses in respect of acquisition of Jining III	3,323 6,277 5,981 8,625 10,932 – 608 925
	20,844 15,827

No interest was capitalized during the periods.

9. PROFIT BEFORE INCOME TAXES

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Prof t before income taxes has been arrived at after charging (crediting): Depreciation of property, plant and equipment Amortization of mining rights (Included in cost of sales and service provided) Total depreciation and amortization Amortization of prepaid lease payments Loss/(Gain) on disposal of property, plant and equipment	833,203 630,903 21,870 8,775
	855,073 639,678
	8,577 8,627 4,449 (7,146)

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10. INCOME TAXES

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Income tax: Current taxes, PRC Enterprise Income Tax Under provision in prior year Deferred tax (note 22): Current period	825,940 1,298,823 43,049 265,390
	868,989 1,564,213
	(197,877) 16,283
	671,112 1,580,496

The Group is subject to a standard income tax rate of 25%. The effective income tax rate of the Group for the current period is 25% (six months ended 30 June, 2008: 29%). The major reconciling items are certain expenses not deductible for tax purposes.

11. DIVIDENDS

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Final dividend approved, RMB0.400 per share (2008: RMB0.170)	1,967,360 836,128

Pursuant to the annual general meeting held on 26 June, 2009, a fi nal dividend in respect of the year ended 31 December, 2008 was approved.

12. EARNINGS PER SHARE AND PER ADS

The calculation of the earnings per share attributable to equity holders of the Company for the six months ended 30 June, 2009 and 30 June, 2008 is based on the profi t for the period of RMB2,025,690,000 and RMB3,912,641,000 and on 4,918,400,000 shares in issue during both periods.

The earnings per ADS have been calculated based on the profi t for the relevant periods and on one ADS, being equivalent to 10 H shares.

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13. RESTRICTED CASH

At the balance sheet date, the short-term restricted cash represents the bank deposits pledged to certain banks to secure banking facilities granted to the Group. The long-term amount represents the bank deposits placed as guarantee for the future payments of rehabilitation cost of Southland as required by the Australian government. The long-term restricted cash carries interest at 3% per annum.

14. BILLS AND ACCOUNTS RECEIVABLE

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Bills receivable Accounts receivable Total bills and accounts receivable Less: Impairment loss Bills and accounts receivable, net	1,827,961 2,571,064 393,505 435,711
	2,221,466 3,006,775
	(18,630) (29,509)
	2,202,836 2,977,266

Bills receivable represent unconditional orders in writing issued by or negotiated with customers of the Group for completed sale orders which entitle the Group to collect a sum of money from banks or other parties.

According to the credit rating of different customers, the Group allows a range of credit periods to its trade customers not exceeding 180 days.

The following is an aged analysis of bills and accounts receivable at the balance sheet date:

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
1-90 days 91-180 days	1,401,040 1,759,526 801,796 1,217,740
	2,202,836 2,977,266

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15. PREPAYMENTS AND OTHER RECEIVABLES

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Advances to suppliers Prepaid freight charges and related handling charges Deposit for environment protection Prepaid relocation costs of inhabitants Others	224,325 94,796 2,910 7,958 140,000 200,000 1,151,895 1,151,895 175,334 112,561
	1,694,464 1,567,210

16. PREPAYMENT FOR RESOURCES COMPENSATION FEES

In accordance with the relevant regulations, the Shanxi Group is required to pay resources compensation fees to the Heshun Municipal Coal Industry Bureau at a rate of RMB2.70 per tonne of raw coal mined. During the year 2006, Shanxi Group was requested by the relevant government to prepay the fees based on production volume of 10 million tonnes. At the balance sheet date, the amount represented the prepayment for resources compensation fees not yet utilized. The current portion represents the amount to be utilized in the coming year which is estimated based on expected production volume.

17. PROVISION FOR LAND SUBSIDENCE, RESTORATION, REHABILITATION AND ENVIRONMENTAL COSTS

	At 30 June 2009 RMB’000
At beginning of period Additional provision in the period Utilization of provision At end of period	450,979 805,094 (288,708) 967,365

The provision for land subsidence, restoration, rehabilitation and environmental costs has been determined by the directors based on their best estimates. However, in so far as the effect on the land and the environment from current mining activities becomes apparent in future periods, the estimate of the associated costs may be subject to change in the near term.

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18. MINING RIGHTS

	RMB’000
COST At 1 January, 2009 Exchange re-alignment At 30 June, 2009 AMORTIZATION At 1 January, 2009 Exchange re-alignment Provision for the period At 30 June, 2009 CARRYING VALUES At 30 June, 2009 At 31 December, 2008	1,133,680 15,223
	1,148,903
	93,973 1,558 21,870
	117,401
	1,031,502
	1,039,707

The Company and the Parent Company have entered into a mining rights agreement pursuant to which the Company has agreed to pay the Parent Company, effective from 25 September, 1997, an annual fee of RMB12,980,000 as compensation for the Parent Company’s agreement to give up the mining rights associated with the Xinglongzhuang coal mine, Baodian coal mine, Nantun coal mine, Dongtan coal mine and Jining II. The annual fee is subject to change after a ten-year period. Up to the date of this interim report, compensation fee of RMB5 per tonne for raw coal mined amounting to RMB80,429,000 for the period has been preliminary agreed. The revised compensation is to be settled with the relevant governmental authority directly. The actual amount of compensation fee payable each year is still to be confi rmed by the governmental authority.

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19. PROPERTY, PLANT AND EQUIPMENT

						Plant,
Freehold land			Harbor works	Railway	Mining	machinery	Transportation	Construction
	in Australia	Buildings	and crafts	structures	structures	and equipment	equipment	in progress	Total
	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
COST
At 1 January, 2009	42,279	3,005,627	255,805	868,967	3,698,573	10,492,130	377,625	4,827,451	23,568,457
Exchange re-alignment	7,437	1,543	–	–	–	134,576	1,283	30,109	174,948
Acquisition of Hua Ju Energy	–	290,362	–	–	–	434,929	4,050	25,872	755,213
Additions	–	–	–	–	–	11,184	172	542,565	553,921
Transfers	–	5,546	–	1,477	–	268,967	2,819	(278,809)	–
Disposals	–	(11,214)	–	–	–	(36,889)	(1,707)	–	(49,810)
At 30 June, 2009	49,716	3,291,864	255,805	870,444	3,698,573	11,304,897	384,242	5,147,188	25,002,729
Accumulated depreciation
At 1 January, 2009	–	1,318,920	66,930	385,292	1,800,077	5,607,220	240,572	–	9,419,011
Exchange re-alignment	–	505	–	–	–	35,948	650	–	37,103
Provision for the period	–	124,177	5,867	9,670	41,414	628,333	23,742	–	833,203
Eliminated on disposals	–	(4)	–	–	–	(28,580)	(1,361)	–	(29,945)
At 30 June, 2009	–	1,443,598	72,797	394,962	1,841,491	6,242,921	263,603	–	10,259,372
CARRYING VALUES
At 30 June, 2009	49,716	1,848,266	183,008	475,482	1,857,082	5,061,976	120,639	5,147,188	14,743,357
At 31 December, 2008	42,279	1,686,707	188,875	483,675	1,898,496	4,884,910	137,053	4,827,451	14,149,446

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20. INVESTMENTS IN SECURITIES

The investment in securities represents available-for-sale equity investments:

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Investment in equity securities listed on the SSE – Stated at fair value Unlisted equity securities	230,174 139,447 30,622 440
	260,796 139,887

The unlisted equity securities are stated at cost less impairment at each balance sheet date because the range of reasonable fair value estimates is so signifi cant that the directors of the Company are of the opinion that their fair value cannot be measured reliably.

21. BILLS AND ACCOUNTS PAYABLE

The following is an aged analysis of bills and accounts payable at the balance sheet date:

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
1-90 days 91-180 days 181-365 days 1-2 years	452,725 469,740 188,359 177,404 76,915 132,576 25,329 130,407
	743,328 910,127

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22. DEFERRED TAXATION

	Fair value Temporary Available- Accelerated adjustment differences Cash f ow for-sale Tax on mining on expenses Tax hedge investment depreciation rights recognized losses reserve Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at 1 January, 2008 Exchange re-alignment Charge to reserve (Charge) credit to income for the year Balance at 31 December, 2008 and 1 January, 2009 Acquisition of Hua Ju Energy Exchange re-alignment Charge to reserve (Charge) credit to income for the period (note 10) Balance at 30 June, 2009	(86,726) (200,154) (39,474) – 31,175 – (295,179) – – – – (8,347) – (8,347) 67,409 – – – – 8,831 76,240 – (39,192) 1,513 225,125 44,086 – 231,532
	(19,317) (239,346) (37,961) 225,125 66,914 8,831 4,246 – – – 2,017 – – 2,017 – (6,904) – – 11,790 – 4,886 (22,682) – – – – (28,883) (51,565) – 9,044 757 188,076 – – 197,877
	(41,999) (237,206) (37,204) 415,218 78,704 (20,052) 157,461

The analysis of deferred tax balances in the fi nancial statements is as follows:

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Deferred tax assets Deferred tax liabilities	199,962 46,023 (42,501) (41,777)
	157,461 4,246

There was no material unprovided deferred tax for the period or at the balance sheet date.

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23. SHAREHOLDERS’ EQUITY

Share capital

The Company’s share capital structure at the balance sheet date is as follows:

	Domestic invested shares State legal person Shares (held by the Parent Company) A shares	Foreign invested shares H shares (including H share represented by ADS) Total
Nubmer of shares At 31 December, 2008 and 30 June, 2009 2,600,000,000 360,000,000 Registered, issued and fully paid(RMB’000) At 31 December, 2008 and 30 June, 2009 2,600,000 360,000 Each share has a par value of RMB1.		1,958,400,000 4,918,400,000
		1,958,400 4,918,400

There is no movement in share capital during the period.

Reserves

Future Development Fund

Pursuant to regulation in the PRC, the Company and Shanxi Tianchi are required to transfer an annual amount to future development specifi c fund at RMB6 per tonne of raw coal mined. The fund can only be used for the future development of the coal mining business and is not available for distribution to shareholders.

Shanxi Tianchi is required to transfer an additional amount at RMB15 per tonne of raw coal mined from 2008 onwards as coal mine transformation fund and mine arrears environmental restoration fund.

Pursuant to the regulations of the Shandong Province Finance Bureau, State-owned Assets Supervision and Administration Commission of Shandong Province and the Shandong Province Coal Mining Industrial Bureau, the Company is required to transfer an additional amount at RMB5 per tonne of raw coal mined from 1 July, 2004 to the reform specifi c development fund for the future improvement of the mining facilities and is not available for distribution to shareholders. No further transfer to the reform specifi c development fund is required from 1 January, 2008.

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23. SHAREHOLDERS’ EQUITY – CONTINUED

In accordance with the regulations of the State Administration of Work Safety, the Group has a commitment to incur RMB8 for each tonne of raw coal mined from 1 May, 2004 which will be used for enhancement of safety production environment and improvement of facilities (Work Safety Cost). In prior years, the work safety expenditures are recognized only when acquiring the fi xed assets or incurring other work safety expenditures. The Company and Shanxi Tianchi make appropriation to the future development fund in respect of unutilized Work Safety Cost from 2008 onwards.

In accordance with the regulations of the State Administration of Work Safety, as one of the subsidiaries of the Group, Hua Ju Energy has a commitment to incur Work Safety Cost at the rate of: 4% of the sales income for the year below RMB10 million; 2% of the actual sales income for the year between 10 million and 100 million (included); 0.5% of the actual sales income for the year between RMB10,000 and RMB100,000(included); 0.2% of the actual sales income for the year above RMB1 billion.

The unutilized Work Safety Cost at 30 June, 2009 was RMB279,798,000.

Statutory Common Reserves Fund

The Company and its subsidiaries in the PRC has to set aside 10% of its profi t for the statutory common reserve fund (except where the fund has reached 50% of its registered capital). The statutory common reserve fund can be used for the following purposes:

• to make good losses in previous years; or

• to convert into capital, provided such conversion is approved by a resolution at a shareholders’ general meeting and the balance of the statutory common reserve fund does not fall below 25% of the registered capital.

Retained earnings

In accordance with the Company’s Articles of Association, the profi t for the purpose of appropriation will be deemed to be the lesser of the amounts determined in accordance with (i) PRC accounting standards and regulations and (ii) IFRS or the accounting standards of the places in which its shares are listed.

The Company can also create a discretionary reserve in accordance with its Articles of Association or pursuant to resolutions which may be adopted at a meeting of shareholders.

The Company’s distributable reserve as at 30 June, 2009 is the retained earnings computed under PRC GAAP which amounted to approximately RMB13,108,434,000 (as at 31 December, 2008: RMB13,250,081,000, as restated with the adoption of new accounting standards under PRC GAAP).

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YANZHOU COAL MINING COMPANY LIMITED

24. ACQUISATION OF HUA JU ENERGY

On 24 October, 2008, the Company entered into an acquisition agreement with the Parent Company and conditionally agreed to acquire 74% equity interest in Hua Ju Energy. On 18 February, 2009, the acquisition was completed and the consideration of RMB593,243,000 was fully paid to the Parent Company to acquire 74% equity interest of Hua Ju Energy. The net assets acquired were included in the methanol, electricity and heat supply segment.

This acquisition has been accounted for using the purchase method.

The net assets of Hua Ju Energy acquired in 2009, and the goodwill arising, are as follows:

	Fair Value RMB`000
Bank balances and cash Bills and accounts receivable Inventories Prepayment and other receivables Other current assets Property, plant and equipment Prepaid lease payment Available-for-sale f nancial assets Deferred tax liability Accounts payable Customer’s deposit and other payables Other current liabilities Total net assets acquired Minority interests Goodwill arising on acquisition Total consideration satisf ed by: Cash consideration paid on acquisition Net cash outf ow arising on acquisition: Cash paid on acquisition Bank balances and cash acquired	4,567 2,129 3,611 79,563 25,246 755,213 74,652 30,182 2,017 (64,760) (263,297) (120,000)
	529,123 (137,572) 201,692
	593,243
	593,243
	(593,243) 4,567
	(588,676)

There is no signifi cant difference between the carrying value and the fair value of net assets of Hua Ju Energy.

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YANZHOU COAL MINING COMPANY LIMITED

24. ACQUISATION OF HUA JU ENERGY – CONTINUED

Goodwill arising from acquisition of Hua Ju Energy is mainly because this acquisition can establish an electricity management platform for the Group and is benefi cial to the future development of coal resources of the Group. It also ensures stable supply of electricity to the Group, reduce operating costs, and enhance profi tability and operating results. It further ensures environmental disposal of waste products such as coal gangue produced from the Group’s mining operations.

During the period from the acquisition date/the beginning period date to 30 June, 2009, this transaction does not have any material impact on the revenue and operating results of the Group.

25. RELATED PARTY TRANSACTIONS

The amounts due to Parent Company and its subsidiary companies are non-interest bearing and unsecured.

The amounts due to the Parent Company and its subsidiary companies as at 30 June, 2009 included the present value of outstanding balance that arose from the funding of the acquisition of the mining rights of Jining III as of 1 January, 2001 discounted using the market rate of bank borrowings.

The consideration for the cost of the mining rights of approximately RMB132.479million is to be settled over ten years by equal annual installments before 31 December of each year, commencing from 2001.

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Amounts due to Parent Company and its subsidiary companies: Within one year More than one year, but not exceeding two years Total Less: amount due within one year Amount due after one year	683,169 706,328 3,626 7,253
	686,795 713,581 (683,169) (706,328)
	3,626 7,253

Except for the outstanding consideration as described above, the amounts due to Parent Company and its subsidiary companies have no specifi c terms of repayment but is expected to be repaid within one year.

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YANZHOU COAL MINING COMPANY LIMITED

25. RELATED PARTY TRANSACTIONS – CONTINUED

During the periods, the Group had the following signifi cant transactions with the Parent Company and its subsidiary companies:

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Income Sales of coal Sales of electricity and heat Sales of auxiliary materials Expenditure Utilities and facilities Purchases of supply materials and equipment Repairs and maintenance services Social welfare and support services Technical support and training Road transportation services Construction services	614,964 586,853 102,612 – 151,379 202,609
	9,948 184,054 219,884 204,828 70,937 101,361 202,625 103,350 13,000 10,000 36,185 43,876 78,014 37,524

Certain expenditures for social welfare and support services (excluding medical and child care expenses) of RMB134,300,000 and RMB82,950,000 for each of the six months ended 30 June, 2009 and 2008 respectively, and for technical support and training of RMB13,000,000and RMB10,000,000 for each of the six months ended 30 June, 2009 and 2008 respectively, have been charged by the Parent Company at a negotiated amount per annum, subject to changes every year.

During the period, the Company acquired Hua Ju Energy from the Parent Company. Details of this acquisition are set out in note 24.

In addition to the above, the Company participates in a retirement benefi t scheme of the Parent Company in respect of retirement benefi ts (note 27).

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25. RELATED PARTY TRANSACTIONS – CONTINUED

Transactions/balances with other state-controlled entities in the PRC

The Group operates in an economic environment currently predominated by entities directly or indirectly owned or controlled by the PRC government (“state-controlled entities”). In addition, the Group itself is part of a larger group of companies under the Parent Company which is controlled by the PRC government. Apart from the transactions with the Parent Company and its subsidiaries and other related parties disclosed above, the Group also conducts business with other state-controlled entities. The directors consider those state-controlled entities are independent third parties so far as the Group’s business transactions with them are concerned.

Material transactions with other state-controlled entities are as follows:

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Trade sales Trade purchases Material balances with other state-controlled entities are as follows:	2,308,403 4,229,998
	113,456 386,649
	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Amounts due from other state-controlled entities Amounts due to other state-controlled entities	79,318 364,420
	157,575 294,888

In addition, the Group has entered into various transactions, including deposits placements, borrowings and other general banking facilities, with certain banks and fi nancial institutions which are state-controlled entities in its ordinary course of business. In view of the nature of those banking transactions, the directors are of the opinion that separate disclosure would not be meaningful.

Except as disclosed above, the directors are of the opinion that transactions with other state-controlled entities are not signifi cant to the Group’s operations.

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25. RELATED PARTY TRANSACTIONS – CONTINUED

Compensation of key management personnel

The remuneration of directors and other members of key management were as follows:

	Six months ended 30 June 2009 2008 RMB’000 RMB’000
Directors’ fee Salaries, allowance and other benef t in kind Retirement benef t scheme contributions	217 417 2,175 1,281 385 208
	2,777 1,906

The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.

26. COMMITMENTS

	At 30 June At 31 December 2009 2008 RMB’000 RMB’000
Capital expenditure contracted for but not provided in the f nancial statements in respect of acquisition of property, plant and equipment	170,727 142,399

Pursuant to the regulations issued by the Shandong Province Finance Bureau, the Group has to pay a deposit to the relevant government authority, which secured for the environmental protection work done by the Company. As at 30 June, 2009, the Company is committed to further make security deposit of RMB797,000,000.

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27. RETIREMENT BENEFITS

Qualifying employees of the Company are entitled to pension, medical and other welfare benefi ts. The Company participates in a scheme of the Parent Company and pays a monthly contribution to the Parent Company in respect of retirement benefi ts at an agreed contribution rate based on the monthly basic salaries and wages of the qualifi ed employees. The Parent Company is responsible for the payment of all retirement benefi ts to the retired employees of the Company.

Pursuant to the Provision of Insurance Fund Administrative Services Agreement entered into by the Company and the Parent Company on 7 November, 2008, the monthly contribution rate is set at 20% (45% for the period ended 30 June, 2008) of the total monthly basic salaries and wages of the Company’s employees for the period from 1 January, 2009 to 31 December, 2011. Retirement pension and other welfare benefi ts will be provided by the Parent Company on the actual cost basis, which will be reimbursed by the Company after actual payment made by the Parent Company (included in 45% contribution rate in pension scheme for the period ended 30 June, 2008).

The Company’s subsidiaries are participants in a state-managed retirement scheme pursuant to which the subsidiaries pay a fi xed percentage of the qualifying staff’s wages as a contribution to the scheme. The subsidiaries’ fi nancial obligations under this scheme are limited to the payment of the employees’ contribution. During the period, contributions paid and payable by the subsidiaries pursuant to this arrangement were insignifi cant to the Group.

At the balance sheet date, there were no forfeited contributions which arose upon employees leaving the above schemes available to reduce the contribution payable in the future years.

28. HOUSING SCHEME

The Parent Company is responsible for providing accommodation to its employees and the employees of the Company. The Company and the Parent Company share the incidental expenses relating to the accommodation at a negotiated amount for each of the six months ended 30 June, 2009 and 2008. Such expenses, amounting to RMB82,500,000 and RMB43,100,000 for each of the six months ended 30 June, 2009 and 2008, have been included as part of the social welfare and support services expenses summarized in note 25.

The Company currently makes a fi xed monthly contribution for each of its qualifying employees to a housing fund which is equally matched by a contribution from the employees. The contributions are paid to the Parent Company which utilizes the funds, along with the proceeds from the sales of accommodation and, if the need arises, from loans arranged by the Parent Company, to construct new accommodation.

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29. POST BALANCE SHEET EVENT

On 13 August 2009, the Company signed a binding Scheme Implementation Agreement with Felix Resources Limited ( Felix ), a corporation incorporated in Australia with shares listed on the Australian Securities Exchange, to acquire all the shares of Felix in cash of approximately AUD3,333 million (equivalent to approximately RMB18.951billion). The principal activities of Felix are exploring and extracting coal resources, operating, identifying, acquiring and developing resource related projects that primarily focus on coal in Australia.

The implementation of the transaction is conditional upon the satisfaction or waiver of the conditions specifi ed in the Scheme Implementation Agreement, which include but are not limited to obtaining the approvals of the shareholders, the Federal Court of Australia and PRC relevant regulatory authorities in respect of the transaction. As at the date of issue of this fi nancial report, the transaction has not yet been completed.

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SUPPLEMENT

• I. SUMMARY OF DIFFERENCES BETWEEN CONDENSED CONSOLIDATED FINANCIAL STATEMENTS PREPARED UNDER IFRS AND THOSE UNDER PRC GAAP

The Group has also prepared a set of condensed consolidated fi nancial statements in accordance with relevant accounting principles and regulations applicable to PRC enterprises.

The condensed fi nancial statements prepared under IFRS and those prepared under PRC GAAP have the following major differences:

• (1) Future development fund and safety work expense

• (1a) adjustment of future development fund, which is charged to income before income taxes under PRC GAAP, to retained earnings;

• (1b) adjustment of the work safety cost, which is charged to income before income taxes under PRC GAAP, to retained earnings; depreciation provided for plant and equipment acquired by utilizing the provision of work safety cost, which under PRC GAAP, work safety cost have been charged as expenses when provision was made.

(2) Consolidation using purchase method under IFRS and using common control method under PRC GAAP

• (2a) Under IFRS, the acquisitions of Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy have been accounted for using the purchase method which accounts for the assets and liabilities of Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy at their fair value at the date of acquisition. Any excess of the purchase consideration over the fair value of the net assets acquired is capitalized as goodwill.

Under PRC GAAP, as the Group, Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy are entities under the common control of the Parent Company, the assets and liabilities of Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy are required to be included in the condensed consolidated balance sheet of the Group at historical cost. The difference between the historical cost of the assets and liabilities of Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy acquired and the purchase price paid is recorded as an adjustment to shareholders’ equity.

• (2b) Under IFRS, the mining rights of Shanxi Group are stated at purchase consideration less amortization. Mining rights are amortized on a straight line basis over twenty-seven years, being the useful life estimated based on the total proven and probable reserves of the coal mine. Under PRC GAAP, as both the Company and Shanxi Group are entities under the common control of the Parent Company, the mining rights have to be restated at nil cost and no amortization on mining rights will be recognized.

• (3) Deferred taxation due to differences between fi nancial statements under IFRS and under PRC GAAP.

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YANZHOU COAL MINING COMPANY LIMITED

• I. SUMMARY OF DIFFERENCES BETWEEN CONDENSED CONSOLIDATED FINANCIAL STATEMENTS PREPARED UNDER IFRS AND THOSE UNDER PRC GAAP – CONTINUED

The following table summarizes the differences between IFRS and PRC GAAPs:

	Net income attributable to Net assets equity holders attributable to of the Company equity holders For six months of the Company ended 30 June As at 30 June 2009 2009 RMB’000 RMB’000
As per condensed f nancial statements prepared under IFRS Impact of IFRS adjustments in respect of: – transfer to future development fund which is charged to income before income taxes – reversal of work safety cost – fair value adjustment on mining rights of Shanxi Group and related amortization – Goodwill arising from acquisition of Jining II, Railway Assets, Heze, Shanxi Group and Hua Ju Energy – deferred tax – others As per f nancial statements prepared under PRC GAAP	2,025,690 27,029,087 (96,515) – (31,937) (641,699) 3,027 (121,001) – (490,294) 8,552 529,795 (4,869) (14,872)
	1,903,948 26,291,016

Note: There are also differences in other items in the condensed fi nancial statements due to differences in classifi cation between IFRS and PRC GAAP

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YANZHOU COAL MINING COMPANY LIMITED

CORPORATE INFORMATION

Registered Name: 兗州煤業股份有限公司 English Name: Yanzhou Coal Mining Company Limited Registered Address: 298 Fushan South Road Zoucheng City Shandong Province PRC Post Code: 273500 Company Website: http://www.yanzhoucoal.com.cn Company Email Address: yzc@yanzhoucoal.com.cn Legal Representative: Wang Xin Company Secretary: Zhang Baocai Authorized Representatives: Wu Yuxiang Zhang Baocai Add: 298 Fushan South Road Zoucheng City Shandong Province 273500 PRC Tel: 86-537-5382319 Fax: 86-537-5383311 Place of Listing: A Shares: The Shanghai Stock Exchange Ticker Symbol: 600188 Stock Abbreviation: G Yanmei H Shares: The Stock Exchange of Hong Kong Limited Stock Code: 1171 Stock Name: Yanzhou Coal ADRs: The New York Stock Exchange Ticker Symbol: YZC

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By order of the Board Yanzhou Coal Mining Company Limited Wang Xin Chairman of the Board

Zoucheng, Shandong Province, the PRC 21 August 2009

As at the date of this announcement, the directors of the Company are Mr. Wang Xin, Mr. Geng Jiahuai, Mr. Yang Deyu, Mr. Shi Xuerang, Mr. Chen Changchun, Mr. Wu Yuxiang, Mr. Wang Xinkun, Mr. Zhang Baocai and Mr. Dong Yunqing, and the independent non-executive directors of the Company are Mr. Pu Hongjiu, Mr. Zhai Xigui, Mr. Li Weian and Mr. Wang Junyan.

1