##### Table of Contents

As filed with Securities and Exchange Commission on August 28, 2014





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 20-F/A

(Amendment No. 1)







| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

OR



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2013

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

Date of event requiring this shell company report

Commission file number: 001-14714







LOGO

(Exact name of Registrant as specified in its charter)

Yanzhou Coal Mining Company Limited

(Translation of Registrants name into English)





Peoples
Republic of China

(Jurisdiction of incorporation or organization)

298 Fushan South Road

Zoucheng, Shandong Province

Peoples Republic of China

(Address of principal executive offices)

Zhang Baocai

298 South Fushan Road

Zoucheng, Shandong Province

Peoples Republic of China (273500)

Tel: (86)537 5382319

Fax: (86)537 5383311

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)



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##### Table of Contents

Securities registered or to be registered pursuant to Section 12(b) of the Act.



|                           |  |                                          
|-------------------------- |  | -----------------------------------------
|Title of each class        |  | Name of each exchange on which
registered
|                           | 
|American Depositary Shares |  | New York Stock Exchange                  
|                           | 
|Class H Ordinary Shares    |  | New York Stock Exchange*                 



|* | Not for trading in the United States, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and
Exchange Commission.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of class)





Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period
covered by the annual report.

2,960,000,000 Domestic Shares, par value RMB1.00 per share

1,958,400,000 H Shares, par value RMB1.00 per share, including H Shares that were represented by 8,299,946 ADSs

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes  x    No   ̈

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes   ̈    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files.)    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See
definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                           |  |                      |  |                         
|-------------------------- |  | -------------------- |  | ------------------------
|Large accelerated filer  x |  | Accelerated filer   ̈ |  | Non-accelerated filer   ̈

Indicate by check mark which basis of accounting the registrant has used to prepare the financial
statements included in this filing:



|             |  |                                                                                                          |  |         
|------------ |  | -------------------------------------------------------------------------------------------------------- |  | --------
|U.S. GAAP   ̈ |  | International Financial Reporting Standards as issued by the International Accounting Standards Board  x |  | Other   ̈

If Other has been checked in response to the previous question, indicate by check mark which
financial statement item the registrant has elected to
follow.    Item 17   ̈    Item 18   ̈

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.    Yes   ̈    No   ̈









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Explanatory Note

This Amendment No.1 to the Annual Report on Form 20-F for the year ended December 31, 2013, as filed with the U.S. Securities and Exchange
Commission (the Commission) on April 29, 2014 (the Original Form 20-F), is being filed solely for the purpose of amending Item 5.  A. Operating Results, Item 5.  F. Tabular Disclosure of
Contractual Obligations, Consolidated Financial Statements  Notes 6. Segment Information and Consolidated Financial Statements  Notes 35. Borrowings in the Original Form 20-F. The Registrant has been
requested by the Commission to supplement details of its segment discussion and analysis, information relating to the waiver obtained by its subsidiary, and the accounting policy relating to estimated impairment of mining reserves.

Other than what is set forth above, this Amendment No. 1 makes no changes to the financial statements of the Registrant and does not, and does
not purport to, amend, update or restate any other information in the Original Form 20-F, or reflect any events that have occurred after the Original Form 20-F was filed on April 29, 2014.



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##### Table of Contents

|ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|------- | --------------------------------------------

The following discussion and analysis should be read in conjunction with the information set forth in our consolidated financial statements, together with the related notes, included in this annual
report.



|A. | Operating Results
|-- | -----------------

During
the period covered by this annual report, our five business segments consist of our:



| |  |  | coal business;
| | - |  | --------------



| |  |  | railway transportation business;
| | - |  | --------------------------------



| |  |  | coal chemical business;
| | - |  | -----------------------



| |  |  | electric power business; and
| | - |  | ----------------------------



| |  |  | heat supply business.
| | - |  | ---------------------

Overview

Coal
Business

We are one of the primary coal producers in China and Australia. We primarily engage in the mining, washing,
processing and distribution of coal through railway transportation. We offer a wide variety of coal products including thermal coal, semi-hard coking coal, semi-soft coking coal, PCI coal and mixed coal products which are sold to power plants,
metallurgical mills, chemical manufacturers and trading companies in China and multiple other countries, including Japan, South Korea and Australia. Since 2004, we have expanded our operations to include railway transportation, production of coal
chemicals, the generation of electricity and heat and the potash exploration business.

Our invoiced amount of coal sold
includes returns, discounts, sales-related taxes, port fees and other fees and, in certain cases, transportation costs payable by customers. Gross sales, or sales income as used elsewhere in this annual report, of coal equals the invoiced amount of
coal sold less returns and discounts. In 2013, we produced approximately 73.8 million tonnes of raw coal and sold approximately 104.0 million tonnes of coal, which included approximately 30.2 million tonnes of coal that was purchased
externally from third parties for trading. In 2011, 2012 and 2013 our sales income of coal was approximately RMB45,181.2 million, RMB56,200.6 million and RMB54,444.8 million, respectively, which represented approximately 96.0%, 96.7% and 96.5%,
respectively, of our total sales income. Domestic sales income of coal accounted for 80.7%, 82.9% and 83.2% and overseas sales income of coal accounted for 19.3%, 17.1% and 16.8% of our total sales income of coal during 2011, 2012 and 2013,
respectively.

Railway Transportation Business

We own a railway network spanning over 200 kilometers, which we use primarily to transport coal, as well as other goods upon the request
of our railway transportation customers. To facilitate our production and sales of coal, we provide railway transportation services to our coal customers and the Yankuang Group. The annual transport volume on our railway network has remained steady
in recent years. In 2013, we transported a total of approximately 18.3 million tonnes of goods on our railway network, compared to approximately 17.5 million tonnes in 2012 and approximately 18.1 million tonnes in 2011.

We derive income from our railway transportation services through the delivery of (i) coal purchased from us on an ex-mine basis, an
arrangement where customers separately bear the cost of transporting the coal they purchase to a designated location, and (ii) goods other than coal that we deliver on behalf of customers who engage us exclusively for our railway transportation
services. In 2013, income from our railway transportation services totaled approximately RMB457.9 million.



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Coal Chemical Business

Our coal chemical operations consist primarily of the production and sale of methanol. Prior to April 2012, we had two subsidiaries
engaged in methanol operations: Yulin Nenghua and Shanxi Nenghua. Shanxi Nenghua ceased production in April 2012 due to a shortage in supply of raw materials. Yulin Nenghuas methanol plant, which has a production capacity of 600,000 tonnes per
annum, commenced commercial operations in August 2009. In 2011, Yulin Nenghua and Shanxi Nenghua (through its wholly owned subsidiary Tianhao Chemicals) produced a total of approximately 532,000 tonnes and sold 529,000 tonnes of methanol, generating
sales income of approximately RMB1,059.3 million. In 2012, Yulin Nenghua and Shanxi Nenghua produced a total of approximately 572,000 tonnes and sold 574,000 tonnes of methanol, generating sales income of approximately RMB1,118.0 million. In 2013,
Yulin Nenghua produced a total of approximately 609,000 tonnes and sold 599,000 tonnes, generating sales income of approximately RMB1,155.7 million. In addition, Ordos Neng Hua is constructing a 600,000-tonne methanol project in Ordos City in the
Inner Mongolia Autonomous Region which will have a production capacity of 600,000 tonnes per annum, which we expect to become operational in the first half of 2014.

Electric Power Business

We own and operate seven power plants, with
total installed capacity of 218 MW, which generate electric power primarily for internal use and, to a lesser extent, external sales. The six cogeneration power plants operated by Hua Ju Energy are able to generate both electric power and heat. We
ceased production at the power plant operated by Shanxi Nenghua on January 1, 2012 due to high fuel costs. We are in the process of disposing this power plant together with Tianhao Chemicals methanol assets. In 2012, we generated a total
of approximately 1,155.2 million kWh of electricity and sold approximately 856.4 million kWh of electricity, generating approximately RMB323.6 million in revenue. In 2013, we generated a total of approximately 1,234.4 million kWh of
electricity and sold approximately 879.1 million kWh of electricity, generating approximately RMB332.1 million in revenue. In addition, Heze Nenghua is constructing a power plant over two phases with an installed capacity of 300 MW each. We
expect Phase 1 of the power plant to become operational in mid-2014.

Heat Supply Business

In 2013, we produced approximately 1.3 million steam tonnes of heat and sold approximately 50,000 steam tonnes of heat, generating
sales revenue of approximately RMB11.2 million.

Factors Affecting Our Results of Operations

Our results of operations and financial condition are affected by a number of factors, many of which are beyond our control, including
those set forth below:

Conditions and regulations affecting the coal mining industry

Our coal mining operations in the PRC are subject to various PRC laws and regulations, including developmental, environmental and health
and safety laws and regulations, and various national and local policies, which could facilitate our acquisition activities and the overall growth of our business and operations, industry consolidation could result in larger coal mining enterprises
that compete against us.

Our mining operations in Australia are regulated by Australian federal and state governments with
respect to environmental issues such as water quality, air quality, dust impact, noise impact, planning issues (such as approvals to expand existing mines, develop new mines or change mining methods), and health and safety issues. Future changes to,
and our continuing compliance with, these regulations may have a material effect on our business and results of operations. See Item 3. Key Information  D. Risk Factors  Risks Relating to Our Business and Industry  Our coal
operations are extensively regulated by the PRC and Australian government, and government regulations may limit our activities and adversely affect our business, results of operations and financial condition.

Demand for coal

Given the nature of our operations, the demand for coal will continue to have a significant effect on our results of operations. Global coal demand correlates strongly with the global economy and, as
such, any downturn or prolonged depression of economic activity may have an adverse effect on demand for coal. Coal demand is also affected by a variety of factors beyond our control, such as the availability and prices of alternative energy sources
to coal, international shipping costs and costs of conducting coal mining operations.

Acquisition and expansion

Our business expansion plans are primarily dependent on successfully acquiring and developing projects that can grow or
diversify our existing operations. Our coal reserves, future production capacity and, consequently, our revenues and results of operations, will depend on the success of such projects. Our business and results of operations could be affected if we
are unable to successfully integrate or operate our acquisitions or achieve anticipated additional revenue and earnings.



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Exchange rate fluctuations

Assets, liabilities and the fair value of financial instruments and balances that we incur, create or acquire in the process of our
international operations and which are denominated in currencies other than RMB, or in currencies other than the functional currencies of the relevant business units, may fluctuate substantially depending on changes in currency exchange rates. See
Item 3. Key Information  D. Risk Factors  Risks Relating to Our Business and Industry  Our business, results of operations and financial condition depend in part on our ability to continue acquiring or developing suitable
coal reserves and Item 11. Quantitative and Qualitative Disclosures of Market Risk  Foreign Currency Exchange Rate Risk.

Product mix

Our products, which include thermal coal, semi-hard coking
coal, semi-soft coking coal and PCI coal, generally have different prices and gross margins. For example, our No. 1 clean coal has historically had a higher gross margin than our other products and, as such, an increased proportion of sales
income generated from No. 1 clean coal would result in higher gross profits. Conversely, if the sales volume of lower gross margin coal products, such as thermal coal, increased in comparison to higher margin coal products, then we would have
lower gross profits despite an increase in sales volume. In addition, the future launch of new products will also affect our product mix and, consequently, our revenues, gross margins and results of operations.

Production capacity

Our results of operations and future growth prospects are affected by our coal production capacity. Our production capacity and production volume may be affected by the macroeconomy and customer demand.
Our production capacity and volume will also depend on our ability to obtain necessary capital and required approvals and permits, as well as production capacity, customer demand and general economic factors. We will continue to focus on increasing
our production capacity by developing our existing projects and potential domestic and international acquisitions. Increasing our production capacity also increases costs, expenses and capital expenditures.

Coal prices

The selling prices of our coal products are influenced by price fluctuations in the PRC domestic market and the global market. In addition, potential reduction in the production in high cost coal
producing regions are expected to provide support for coal price going forward. In the long run, coal prices are expected to increase as a result of growing demand for coal to fuel industrialization and urbanization and steady production increase
due to higher royalties and environmental and social related costs.

Cost of sales

Our results of operations are affected by our cost of sales, which mainly comprises wages and employee benefits, purchases of coal from
third parties for trading purposes, materials, land subsidence, restoration, rehabilitation and environmental costs, depreciation and amortization expenses and business tax and surcharges associated with our coal business and railway transportation
business. Key factors impacting these costs include variations in production volume, the cost of power, fuel and labor, the application of advanced mining technologies, changes in railway fees and port fees, and contractual terms of our coal
products.

Transportation volume and cost

We primarily use railways and highways and, to a lesser extent, domestic and international shipping lanes, to transport coal. We primarily rely on the national railway system in the PRC and railway
systems operated by third parties in Australia to transport our coal. In addition, we also utilize our private railway network to transport other goods upon the request of our railway transportation customers. We also transport coal on the national
railway system to ports, from which we ship coal to our customers. Railway, waterway and roadway transportation costs are charged by carriers who deliver our coal products to our customers. Our revenue and results of operations may be affected by
fluctuations in the transportation volume and capacity of national and state railway systems and of our own railway assets, as well as fluctuations in the costs associated with transporting coal to our customers.

Coal resources and reserves

Coal resources and reserves data is a key element in our decision-making process. All coal reserves data are estimates, which are revised when additional information becomes available (for example, when
additional coal mines commence operations or when actual coal production or extraction commences). If the amount or quality of coal mined differs from the reserve estimates, we may have to further process or wash the coal mined in order to produce
coal of a saleable quality. See Item 3. Key Information  D. Risk Factors  Risks Relating to Our Business and Industry  The coal reserve data in this annual report are only estimates, which may differ materially from actual
reserve amounts.



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Results of Operations

The following table sets forth our income statement and the percentage of each line item to our total revenue for the periods indicated:



|                                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|-------------------------------------------- |  | ------------ | --------- | - | ---------- |  | ----- | ------------ |  |  | --------- | - |  | ------------ | ----- | - | - |  | --------- | - |  |  | ----- | -
|                                             |  | 2011         |           |   | 2012       |  |       | 2013         | 
|                                             |  | RMB(million) |           |   | %          |  |       | RMB(million) |  |  | %         |   |  | RMB(million) |       |   | % | 
|                                             |  | (Restated)   |           |   | (Restated) |  |       |              |  |  |           |  
|Total revenue                                |  |              | 47,065.8  |   |            |  | 100.0 |              |  |  | 58,146.2  |   |  |              | 100.0 |   |   |  | 56,401.8  |   |  |  | 100.0 |  
|Gross sales of coal                          |  |              | 45,181.2  |   |            |  | 96.0  |              |  |  | 56,200.6  |   |  |              | 96.7  |   |   |  | 54,444.8  |   |  |  | 96.5  |  
|Railway transportation service income        |  |              | 476.9     |   |            |  | 1.0   |              |  |  | 464.1     |   |  |              | 0.8   |   |   |  | 457.9     |   |  |  | 0.8   |  
|Gross sales of electric power                |  |              | 328.0     |   |            |  | 0.7   |              |  |  | 323.6     |   |  |              | 0.6   |   |   |  | 332.1     |   |  |  | 0.6   |  
|Gross sales of methanol                      |  |              | 1,059.3   |   |            |  | 2.3   |              |  |  | 1,118.0   |   |  |              | 1.9   |   |   |  | 1,155.7   |   |  |  | 2.0   |  
|Gross sale of heat supply                    |  |              | 20.5      |   |            |  | 0.0   |              |  |  | 39.9      |   |  |              | 0.1   |   |   |  | 11.2      |   |  |  | (0.1  | )
|Transportation costs of coal                 |  |              | (1,248.3  | ) |            |  | (2.7  | )            |  |  | (2,104.2  | ) |  |              | (3.6  | ) |   |  | (2,024.2  | ) |  |  | (3.6  | )
|Cost of sales and service provided           |  |              | (25,986.7 | ) |            |  | (55.2 | )            |  |  | (42,149.0 | ) |  |              | (72.5 | ) |   |  | (42,511.8 | ) |  |  | (80.7 | )
|Cost of electric power                       |  |              | (362.5    | ) |            |  | (0.8  | )            |  |  | (330.8    | ) |  |              | (0.6  | ) |   |  | (320.5    | ) |  |  | (0.6  | )
|Cost of methanol                             |  |              | (930.2    | ) |            |  | (2.0  | )            |  |  | (911.2    | ) |  |              | (1.6  | ) |   |  | (850.8    | ) |  |  | (1.5  | )
|Cost of heat supply                          |  |              | (13.8     | ) |            |  | 0.0   |              |  |  | (25.1     | ) |  |              | 0.0   |   |   |  | (6.7      | ) |  |  | (0.1  | )
|                                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|Gross profit                                 |  |              | 18,524.3  |   |            |  | 39.4  |              |  |  | 12,625.8  |   |  |              | 21.7  |   |   |  | 10,687.8  |   |  |  | 18.9  |  
|Selling, general and administrative expenses |  |              | (6,570.2  | ) |            |  | (13.9 | )            |  |  | (7,987.6  | ) |  |              | (13.7 | ) |   |  | (10,380.7 | ) |  |  | (18.4 | )
|Share of profit of associates                |  |              | 68.9      |   |            |  | 0.1   |              |  |  | 142.0     |   |  |              | 0.2   |   |   |  | 233.9     |   |  |  | 0.4   |  
|Share of loss of jointly ventures            |  |              |          |   |            |  | 0.0   |              |  |  | (191.6    | ) |  |              | 0.3   |   |   |  | (376.0    | ) |  |  | (0.7  | )
|Other income                                 |  |              | 1,075.8   |   |            |  | 2.3   |              |  |  | 2,930.4   |   |  |              | 5.0   |   |   |  | 1,020.6   |   |  |  | 1.8   |  
|Interest expense                             |  |              | (839.3    | ) |            |  | (1.8  | )            |  |  | (1,448.7  | ) |  |              | (2.5  | ) |   |  | (1,765.8  | ) |  |  | (3.1  | )
|                                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|Profit/(Loss) before income taxes            |  |              | 12,259.5  |   |            |  | 26.0  |              |  |  | 6,070.4   |   |  |              | 10.4  |   |   |  | (580.3    | ) |  |  | (1.0  | )
|Income taxes                                 |  |              | (3,466.9  | ) |            |  | (7.4  | )            |  |  | (36.2     | ) |  |              | (0.1  | ) |   |  | 394.8     |   |  |  | 0.7   |  
|                                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|Profit/(Loss) for the year                   |  |              | 8,792.6   |   |            |  | 18.7  |              |  |  | 6,034.2   |   |  |              | 10.4  |   |   |  | (185.5    | ) |  |  | (0.3  | )
|                                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|Attributable to:                             |  |              |           |   |            |  |       |              |  |  |           |   |  |              |       |   |   |  |           |   |  |  |       |  
|Equity holders of the Company                |  |              | 8,745.1   |   |            |  | 18.6  |              |  |  | 6,065.6   |   |  |              | 10.4  |   |   |  | 777.4     |   |  |  | 1.4   |  
|Non-controlling interests                    |  |              | 47.5      |   |            |  | 0.1   |              |  |  | (31.4     | ) |  |              | 0.1   |   |   |  | (962.8    | ) |  |  | (1.7  | )

Year Ended December 31, 2013 Compared with Year Ended December 31, 2012

Total revenue

Our total revenue decreased RMB1,744.4 million, or 3.0%, from approximately RMB58,146.2 million in 2012 to approximately RMB56,401.8 million in 2013. Our gross sales of coal, which accounted for 96.5% of
our total revenue in 2011, decreased by RMB1,755.8 million, or 3.1%, from approximately RMB56,200.6 million in 2012 to approximately RMB54,444.8 million in 2013. The decrease in gross sales of coal was primarily due to the decrease of the average
selling price led by weak demand for coal in both domestic and overseas markets. In 2013, our average selling price of coal products decreased by approximately RMB80.7 per tonne, from RMB604.3 to RMB523.5 per tonne, a 13.4% decrease from 2012. Our
sales volume of coal products increased 11.8% from approximately 93.0 million tonnes in 2012 to 104.0 million tonnes in 2013.

In 2013, the transportation volume of our railway assets was approximately 18.3 million tonnes, representing a slight increase of approximately 0.7 million tonnes, or 4.2%, from 2012. Our
railway transportation services income (income from transported volume settled on the basis of off-mine prices and special purpose railway transportation fees borne by customers) decreased by RMB6.2 million, or 1.3%, from approximately RMB464.1
million in 2012 to approximately RMB457.9 million in 2013.

Our gross sales of methanol increased by approximately RMB37.7
million, or 3.4%, from RMB1,118.0 million in 2012 to approximately RMB1,155.7 million in 2013. The increase in gross sales of methanol was mainly attributable to an increase in sales volumes of methanol. Our gross sales of electric power increased
by approximately RMB8.5 million, or 2.6%, from approximately RMB323.6 million in 2012 to approximately RMB332.1 million in 2013. Our gross sales of heat supply decreased by RMB28.7 million, or 71.9%, from approximately RMB39.9 million in 2012 to
approximately RMB11.2 million in 2013, due primarily to our termination of heat supply to Jidong New Town.



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##### Table of Contents

Transportation costs of coal

Our coal transportation costs, including our railway transportation costs for coal products, decreased by RMB80.0 million, or 3.8%, from
RMB2,104.2 million in 2012 to RMB2,024.2 million in 2013, and included transportation costs for our coal sold in the PRC of RMB444.3 million and for coal sold outside the PRC of approximately RMB1,579.9 million. Our sales volume of coal products
increased by 11.0 million tonnes, which included 7.0 million tonnes of trading coal.

We use highways and, to a lesser extent,
railways, domestic and international shipping lanes to transport trading coal. We are responsible for costs incurred if coal is transported via railways. The costs of highway and shipping lanes are charged by the relevant carriers to, and borne by,
our customers and are not recorded as our transportation costs. As a result, while sales volume of coal increased in 2013, our transportation costs of coal decreased in 2013 due to a general decrease in railway transportation coal volume, the costs
of which are borne by the Company compared with volumes transported using highways, which are borne by our customers.

Cost
of sales and services provided

Our total cost of sales and services provided increased by RMB362.8 million, or 0.9%, from
RMB42,149.0 million in 2012 to approximately RMB42,511.8 million in 2013, primarily due to increased sales volumes of coal. The increased sales volumes resulted in an increase of RMB1,311.5 million in purchases of coal from third parties for trading
purposes and a RMB347.2 million increase in depreciation.

Cost of electric power

Our cost of electric power decreased by RMB10.3 million from approximately RMB330.8 million in 2012, to approximately RMB320.5 million in
2013, primarily due to a decrease in electric power sold by Yulin Nenghua. Yulin Nenghua sold approximately 99.8 million kWh of electric power in 2013 compared to 244.6 million kWh of electric power in 2012, the decrease of which was
caused by its increased internal consumption of electricity.

Cost of methanol

Our production costs decreased from approximately RMB911.2 million in 2012 to approximately RMB850.8 million in 2013, primarily due to the
decrease in the cost of coal.

Cost of heat supply

Our cost of heat supply decreased by RMB18.4 million, from approximately RMB25.1 million in 2012 to approximately RMB6.7 million in 2013,
primarily due to the decrease in our sales volume of heat supply.

Selling, general and administrative expenses

Our selling, general and administrative expenses increased by RMB2,393.1 million, or 30.0%, from approximately RMB7,987.6
million in 2012 to approximately RMB10,380.7 million in 2013. This increase was primarily attributable to the exchange losses of approximately RMB1,686.0 million we recorded in 2013 as the result of the U.S. dollar denominated and RMB denominated
loans held by our Australian subsidiaries and the depreciation of Australian dollars against U.S. dollars and RMB. The increase was also due to an increase of RMB1,321.2 million in provision for assets impairment loss as compared with 2012.

Share of income of associates

Our share of income from associates increased by RMB91.9 million, or 64.7%, from RMB142.0 million in 2012 to approximately RMB233.9 million in 2013, primarily due to an increase of RMB90.1 million in
investment income from Huadian Zouxian as compared with 2012.

Share of loss of joint ventures

Our share of loss of joint ventures increased by RMB184.4 million, or 96.3%, from RMB191.6 million in 2012 to RMB376.0 million in 2013,
primarily due to an increase in the investment loss of RMB184.4 million in the joint venture operating Middlemount Coal Mine.

Other income

Our other income decreased by RMB1,909.9 million, or 65.2%, from approximately RMB2,930.4 million in 2012 to approximately RMB1,020.6 million in 2013, primarily due to approximately RMB1,269.2 million of
income generated from the acquisition of Gloucester in 2012 and a foreign exchange gain of approximately RMB714.2 million in 2012.



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##### Table of Contents

Interest expenses

Our interest expenses increased by RMB317.1 million, from approximately RMB1,448.7 million in 2012 to approximately RMB1,765.8 million in
2013, primarily due to the offering of RMB denominated short-term notes and the non-public issuance of financial instruments in 2013.

Loss before income tax

As a result of the foregoing, we recorded loss
before income taxes of approximately RMB580.3 million in 2013, as compared to the profit before income taxes of approximately RMB6,070.4 million in 2012.

Income tax gain

We recorded income tax gains of approximately RMB394.8
million in 2013, as compared to income tax expenses of approximately RMB36.2 million in 2012, primarily due to the decrease in deferred income tax resulting from a loss incurred by Yancoal Australia in 2013.

The effective income tax rate increased from 0.6% in 2012 to 68% in 2013 primarily due to loss incurred by the Companys Australian
operations, which are subject to generally higher income tax rates at a rate of 30%. The resulting income tax gain (after-tax effect of both income taxes and MRRT) of our Australian operations was RMB1,571 million and RMB1,690 million in 2012 and
2013, respectively. Excluding our subsidiaries, we were the major contributor to the income tax of the Group as a whole, with an income tax expense of RMB1,605 million and RMB1,469 million in 2012 and 2013, respectively. The resulting set-off
resulted in a net income tax gain of RMB221 million in 2013 and net income tax expense of RMB34 million in 2012. As a result of the foregoing, we experienced a significant fluctuation of our effective income tax rate from 2012 to 2013, as our
corresponding effective tax rate was 0.56% and 38.0% in 2012 and 2013, respectively. The remaining income tax gain in 2013 is mainly related to losses incurred by other Chinese subsidiaries.

Loss for the year

As a result, we recorded loss for the year of approximately RMB185.5 million in 2013, as compared to profit for the year of approximately RMB6,034.2 million in 2012. In particular, net profit from our
trading of externally purchased coal in 2013 was approximately RMB125.8 million. The profit attributable to equity holders of the Company decreased by RMB5,288.2 million, or 87.2%, from approximately RMB6,065.6 million in 2012 to approximately
RMB777.4 million in 2013.

Year Ended December 31, 2012 Compared with Year Ended December 31, 2011

Total revenue

Our total revenue in 2012 increased by RMB11,080.4 million, or 23.5%, from RMB47,065.8 million to approximately RMB58,146.2 million. Our gross sales of coal, which accounted for 96.7% of our total revenue
in 2012, increased by RMB11,019.4 million, or 24.4%, to RMB56,200.6 million in 2012. This reflected an increase in coal sales volume of 29.9 million tonnes, or 46.5%, primarily due to an increase in the sales volume of externally purchased
coal, an increase in the sales volume of coal in Australia and an increase in the sales volume of coal by Ordos Nenghua, partially offset by a decrease in the average selling price of our coal products by RMB108.4 per tonne, or 15.3%, from RMB709.1
per tonne in 2011 to RMB599.3 per tonne in 2012, as the result of the weak demand for coal caused by the global economic slowdown.

In 2012, the transportation volume of our railway assets was approximately 17.5 million tonnes, representing a decrease of approximately 0.6 million tonnes, or 3.2%, compared to 2011. Our
railway transportation services income (income from transported volume settled on the basis of ex-mine prices and special purpose railway transportation fees borne by customers) decreased by RMB12.8 million, or 2.7%, from approximately RMB476.9
million in 2011 to approximately RMB464.1 million in 2012. Our gross sales of electric power decreased by RMB4.4 million, or 1.3%, from approximately RMB328.0 million 2011 to RMB323.6 million in 2012. This decrease was due to decreased power
generation and sales of electric power in 2012, in part due to the high cost of fuel as a result of which we shut down power generation operations at Shanxi Nenghua beginning January 1, 2012. Our gross sales of methanol increased by RMB58.7
million, or 5.5%, from approximately RMB1,059.3 million in 2011 to approximately RMB1,118.0 million in 2012. This increase was primarily due to the increased production and sales volumes by Yulin Nenghua. Our gross sales of heat supply increased by
RMB19.4 million, or 94.6%, from approximately RMB20.5 million in 2011 to approximately RMB39.9 million in 2012. This increase was primarily due to our provision of heat supply to more customers for a longer duration as compared with 2011.



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Transportation costs of coal

Transportation costs of coal primarily consist of railway, waterway and roadway transportation costs charged by carriers that deliver our
coal products to our customers. Our coal transportation costs increased by RMB855.9 million, or 68.6%, from approximately RMB1,248.3 million in 2011 to approximately RMB2,104.2 million in 2012, primarily due to the increase in the sales volume of
coal. Coal transportation costs in 2012 consisted of transportation costs of approximately RMB281.8 million for coal sold in the PRC and approximately RMB1,822.4 million for coal sold outside of the PRC.

Cost of sales and services provided

Our cost of sales and railway transportation services consists of the costs of our coal business and railway transportation business, which primarily consist of wages and employee benefits, purchases of
coal from third parties for trading purposes, materials, land subsidence, restoration, rehabilitation and environmental costs, depreciation and amortization expenses and business tax and surcharges. Our cost of sales and services provided increased
by RMB16,162.3 million, or 62.2%, from approximately RMB25,986.7 million in 2011 to approximately RMB42,149.0 million in 2012, primarily due to an increase of approximately RMB11,974.0 million in the cost of traded coal as a result of an increase in
the volumes of coal we purchased from third parties for trading purposes. In addition, cost of sales of traded coal is generally higher than cost of sales of our in-house coal products because purchase prices from other coal mining companies and
trading companies are higher than the production cost of our in-house coal products. The increase in our cost of sales and services provided was also caused by an increase of approximately RMB1,435.9 million in wages and employee benefits as a
result of an increase in employee headcount.

Cost of electric power

Our cost of electric power operations primarily consists of raw material and labor costs incurred to generate electric power. Our cost of
electric power decreased by RMB31.7 million, or 8.7%, from approximately RMB362.5 million in 2011 to approximately RMB330.8 million in 2012, primarily due to decreased power generation at the power plants operated by Hua Ju Energy and Yulin Nenghua,
as well as the closure of Shanxi Nenghuas power plant due to high fuel costs.

Cost of methanol

Our cost of methanol primarily consists of raw materials, labor costs, depreciation and other manufacturing overhead. Our cost of methanol
decreased by RMB19.0 million, or 2.0%, from approximately RMB930.2 million in 2011 to approximately RMB911.2 million in 2012 primarily because the methanol project at Shanxi Nenghua ceased production due to a shortage of raw materials in April 2012.

Cost of heat supply

Our cost of heat supply primarily consists of raw materials and labor in our heat supply business. Our cost of heat supply increased by RMB11.3 million, or 81.9%, from approximately RMB13.8 million in
2011 to approximately RMB25.1 million in 2012, primarily due to an increase of 60,000 steam tonne in heat supply sold.

Selling, general and administrative expenses

Our selling, general and administrative expenses increased by RMB1,417.4 million, or 21.6%, from approximately RMB6,570.2 million in 2011 to approximately RMB7,987.6 million 2012, primarily due to
increases in impairment losses on intangible assets, goodwill and inventories of approximately RMB575.7 million, and RMB214.1 million in distribution charges.

Share of income of associates

Our share of income from associates
increased by RMB73.0 million, or 106.0%, from approximately RMB68.9 million in 2011 to RMB142.0 million in 2012, due to an increase in our income of RMB82.6 million from Huadian Zouxian Power Generation Company Limited (Huadian Zouxian).

Other income

Our other income increased significantly by RMB1,854.7 million, or 172.4%, from approximately RMB1,075.8 million in 2011 to approximately RMB2,930.4 million in 2012. This increase was primarily due to a
gain in bargain purchase in the sum of RMB1,269.3 million arising from our acquisition of Gloucester, resulting from a decrease in the market capitalization and market price of the consideration shares, as well as an increase of RMB364.6 million in
bank deposit interest and exchange gains of RMB195.6 million from Yancoal Australia.



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Interest expenses

Our interest expenses increased by RMB609.4 million, or 72.6%, from approximately RMB839.3 million in 2011 to RMB1,448.7 million in 2012,
mainly due to the issuance of corporate bonds in the amount of US$1.0 billion and an increase in bank loans in 2012.

Profit before income tax

As a result of the foregoing, our profit before income taxes decreased by approximately RMB6,189.18 million, or 50.5%, from approximately RMB12,259.5 million in 2011 to RMB6,070.4 million in 2012.

Income tax expenses

Our income tax decreased by RMB3,430.7 million, or 99.0%, from approximately RMB3,466.9 million in 2011 to approximately RMB36.2 million in 2012, primarily due to a decrease in current income tax expenses
of RMB1,725.2 million and a decrease in the income tax expenses of our Australian subsidiaries of RMB1,085.2 million, which was primarily due to an increase in its deferred tax assets related to the implementation of MRRT.

The effective income tax rate decreased from 28% in 2011 to 0.6% in 2012 primarily due to the Australia MRRT imposed in 2012, which
resulted in an one-off income tax benefit in 2012. The Australia MRRT is a minerals tax that applies to our Australian operations at a rate of 22.5%. The MRRT imposed in 2012 amounted to approximately RMB1,085 million. The effective income tax rate
in 2012 without taking into the account of the effect of MRRT would have been 18.5%. The remaining effect on the reduction of effective interest rate from 2011 to 2012 is mainly related to non-taxable income such as gain on bargin purchase of
Gloucester amounted to RMB 388 million.

Profit for the year

As a result, our profit for the year decreased by RMB2,758.4 million, or 31.4%, from approximately RMB8,792.6 million in 2011 to
approximately RMB6,034.2 million in 2012. The profit attributable to equity holders of the Company decreased by RMB2.679.5 million, or 30.6%, from RMB8,745.1 million in 2011 to approximately RMB6,065.6 million in 2012. In particular, net profit from
our trading of externally purchased coal in 2012 was approximately RMB28.0 million, which represented approximately 0.45% of our profit for the year.

Segment Information

The following table sets forth a breakdown of
our total consolidated gross revenues for each of the years indicated and the percentage contribution of each segment to our total gross revenues:



|                                              |  |                                       |          |   |      |  |       |      |  |  |          |   |  |     |       |   |   |  |          |   |  |  |       |  
|--------------------------------------------- |  | ------------------------------------- | -------- | - | ---- |  | ----- | ---- |  |  | -------- | - |  | --- | ----- | - | - |  | -------- | - |  |  | ----- | -
|                                              |  | 2011                                  |          |   | 2012 |  |       | 2013 | 
|                                              |  | RMB                                   |          |   | %    |  |       | RMB  |  |  | %        |   |  | RMB |       |   | % | 
|                                              |  | (in millions, except for percentages) |         
|Coal mining revenue                           |  |                                       | 45,468.5 |   |      |  | 96.6  |      |  |  | 56,419.8 |   |  |     | 97.0  |   |   |  | 54,901.0 |   |  |  | 97.3  |  
|Railway transportation revenue                |  |                                       | 528.6    |   |      |  | 1.1   |      |  |  | 496.6    |   |  |     | 0.9   |   |   |  | 501.2    |   |  |  | 0.9   |  
|Methanol, electricity and heat supply revenue |  |                                       | 1,664.1  |   |      |  | 3.5   |      |  |  | 1,765.9  |   |  |     | 3.0   |   |   |  | 1,792.1  |   |  |  | 3.2   |  
|Unallocated and eliminations                  |  |                                       | (595.3   | ) |      |  | (1.3  | )    |  |  | (536.2   | ) |  |     | (0.9  | ) |   |  | (792.4   | ) |  |  | (1.4  | )
|                                              |  |                                       |          |   |      |  |       |      |  |  |          |   |  |     |       |   |   |  |          |   |  |  |       |  
|Gross revenue                                 |  |                                       | 47,065.8 |   |      |  | 100.0 |      |  |  | 58,146.2 |   |  |     | 100.0 |   |   |  | 56,401.8 |   |  |  | 100.0 |  
|                                              |  |                                       |          |   |      |  |       |      |  |  |          |   |  |     |       |   |   |  |          |   |  |  |       |  

We are mainly engaged in the mining, washing, processing and railway distribution of coal. For the year
ended December 31, 2013, we derived our revenue mainly derived from coal sales in the PRC.



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Coal mining revenue

Our revenue from coal mining segment (before unallocated corporate income and eliminations) decreased by RMB1,518.8 million, from
approximately RMB56,419.8 million in 2012 to approximately RMB54,901.0 million in 2013, primarily due to general market volatility and weakened overall demand for coal in domestic and overseas markets, which decreased average selling prices of coal
from RMB604.3 per tonne in 2012 to RMB523.5 per tonne in 2013. In addition, we recorded a loss on share of associates of RMB330.2 million in our mining business in 2013 as compared to a profit of RMB33.6 million in 2012, primarily due to the
decrease in the selling prices of coal that resulted in loss to our associates. Furthermore, we recognized a loss on our share of joint ventures in mining businesses, which increased from RMB191.6 million in 2012 to RMB376.0 million in 2013,
primarily due losses incurred in our joint venture operating the Middlemount Coal Mine, which resulted from decreased coal prices. The decrease was partially offset by increased sales volume of coal products, which increased from approximately 93.0
million tonnes in 2012 to approximately 104.0 million tonnes in 2013.

In 2013, we re-categorized our investment of
RMB1.4 billion in Shaanxi Future Energy Chemical Corp. Ltd. (Shaanxi Future) from the methanol, electricity and heat supply business segment to the coal mining business segment for accounting and operational reasons as we expected
Shaanxi Future to commence coal mining operations in 2014. This resulted in an increase of RMB1,369.8 million in the interests in associates in coal mining business segment and a corresponding decrease of RMB1,249.1 million in the interests in
associates in the methanol, electricity and heat supply business segment.

In 2013, we recorded an impairment loss on
intangible assets of RMB2,052.2 million, compared with RMB417.2 million in 2012, primarily due to a decrease in the valuation of our mining rights for certain of our Australian coal mines, primarily resulting from decreased coal prices.

Railway transportation

Our revenue from railway transportation business segment (before unallocated corporate income and eliminations) remained relatively stable at RMB501.2 million in 2013 as compared to RMB496.6 million in
2012.

The segment liabilities for the railway transportation business segment increased by RMB104.2 million, from RMB66.6
million in 2012 to approximately RMB170.9 million in 2013, primarily due to an increase in receivables due from companies within our Group in 2013 as a result of their late payments.

Methanol, electricity and heat supply business

Our revenue from methanol, electricity and heat supply business segment (before unallocated corporate income and eliminations) increased by RMB26.2 million, from RMB1,765.9 million in 2012 to RMB1,792.1
million in 2013. Our profits from associates in the methanol, electricity and heat supply business segment increased by RMB455.7 million, from RMB108.4 million in 2012 to RMB564.1 million in 2013, as the result of decreased operating costs due
decreased raw materials prices, especially coal prices due to market factors.

Unallocated and eliminations

Our unallocated corporate income decreased by RMB1,915.7 million, from RMB1,987.1 million in 2012 to RMB71.4 million, primarily reflecting
the recognition in 2012 of a one-off premium of approximately RMB1,269.3 million recorded for the acquisition of Gloucester Coal and net foreign exchange income of RMB714.2 million, which we did not recognize in 2013.

Our unallocated corporate expenses decreased by RMB255.9 million, from RMB2,160.0 million in 2012 to RMB1,504.1 million in 2013,
reflecting the successful implementation of cost-saving measures across the Group, and primarily include decreases of (i) RMB231.6 million in advertising expenses, (ii) RMB223.2 million in wages and employee benefits, (iii) RMB35.5 million in
legal and professional fees, (iv) RMB31.0 million in telecommunication expenses and (v) RMB30.5 million in repairs and maintenance expenses. This decrease was partially offset by an increase of RMB62.0 million in other tax payables as a result of
tax increases relating to land use rights.



|B. | Liquidity and Capital Resources
|-- | -------------------------------

Our principal sources of liquidity in 2013 were proceeds from bank borrowings, offering of RMB denominated short term notes and non-public issuance of financing instruments and the cash generated from our
operating activities. In 2013, we primarily utilized cash to pay our operating expenses, purchase property, machinery and equipment, finance acquisitions and pay dividends to shareholders.



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Our principal sources of liquidity in 2012 were proceeds from bank borrowings, the
RMB-denominated corporate bonds we issued in 2012 (the RMB Bond Offering) and the US$-denominated corporate bonds we issued in 2012 (the US$ Bond Offering) and the cash generated from our operating activities. Our primary
sources of cash in 2011 were cash flows from operating activities and bank borrowings. We used cash primarily to finance working capital, fund payments of interest and principal due on our indebtedness, finance acquisitions and fund capital
expenditures and the growth and expansion of our facilities and operations.

Taking into account our cash and cash equivalents
on hand, our available credit facilities, cash generated from our future operations and the proceeds from the offering of RMB denominated short term notes and non-public issuance of financing instruments, we believe we have sufficient working
capital to meet our financial requirements for at least the next 12 months from the date of this annual report. As of December 31, 2013, we had cash and cash equivalents of approximately RMB10,922.6 million.

We conduct our operations directly and through our operating subsidiaries, some of which we do not wholly own, are joint ventures or are
public companies. Therefore, we may not be able in all circumstances to allocate our free cash flow as we would like among our subsidiaries. In addition, PRC law restricts the ability of our subsidiaries to transfer funds to us in the form of cash
dividends, loans or advances. PRC regulations currently permit payment of dividends by PRC companies only out of accumulated profits as determined in accordance with PRC accounting standards and regulations. In addition, under current PRC laws,
regulations and accounting standards, each subsidiary is required to allocate at least 10% of its after-tax profit based on PRC accounting standards to its statutory common reserve fund each year until the cumulative amount of these reserves reaches
50% of its registered capital. These reserves are not distributable as cash dividends. As of December 31, 2013, the required deductions attributable to these statutory common reserve funds amounted to approximately RMB5,511.3 million.

Furthermore, under SAFE regulations, Renminbi is not convertible into foreign currencies for capital account items, such as
loans, repatriation of investments and investments outside of China, unless the prior SAFE approval is obtained and prior registration with the SAFE is made. These restrictions have not historically had, and are not expected in the future to have, a
material impact on our ability to meet our financial requirements.

Cash Flows

The following table sets forth a summary of our cash flows for the periods indicated:



|                                                       |  |                         |           |   |      |  |          |      |  |  |           |  
|------------------------------------------------------ |  | ----------------------- | --------- | - | ---- |  | -------- | ---- |  |  | --------- | -
|                                                       |  | Year Ended December 31, |          
|                                                       |  | 2011                    |           |   | 2012 |  |          | 2013 | 
|                                                       |  | (RMB000)               |          
|Net cash from / (used in) operating activities         |  |                         | 17,977.3  |   |      |  | 6,503.6  |      |  |  | (2,201.1  | )
|Net cash used in investing activities                  |  |                         | (25,611.0 | ) |      |  | (3,187.4 | )    |  |  | (13,504.4 | )
|Net cash from financing activities                     |  |                         | 9,441.0   |   |      |  | 1,145.1  |      |  |  | 13,286.9  |  
|Net increase / (decrease) in cash and cash equivalents |  |                         | 1,807.3   |   |      |  | 4,461.4  |      |  |  | (2,418.5  | )
|Cash and cash equivalents as of end of year            |  |                         | 8,145.3   |   |      |  | 12,717.4 |      |  |  | 10,922.6  |  



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##### Table of Contents

Cash flow from / (used in) operating activities

Net cash from operating activities represents cash generated from operations after income taxes, interest and dividend income. Cash
generated from operations consisted of profit before income taxes adjusted for certain noncash items, including depreciation, certain interest expenses and income, amortization and our share of investment in an associate company and cash generated
from other activities.

Net cash used in operating activities was approximately RMB2,201.1 million in 2013, and included loss
before income taxes of approximately RMB580.3 million, adjustments for non-cash items of approximately RMB8,737.5 million, and negative changes in working capital of approximately RMB7,641.2 million. Adjustments for non-cash items primarily
consisted of (i) depreciation of property, plant and equipment of approximately RMB3,125.0 million; (ii) impairment loss on intangibles assets of approximately RMB2,052.3 million and (iii) interest expenses of approximately RMB1,765.8
million. Negative changes in working capital consisted of (i) decrease in bills and accounts payable of approximately RMB3,187.9 million; (ii) increase in bills and accounts receivable of approximately RMB1,722.0 million;
(iii) increase in repayments and other current assets of approximately RMB1,378.0 million and (iv) decrease in other payables and accrued expenses of approximately RMB1,223.3 million.

Net cash from operating activities was approximately RMB6,503.6 million in 2012, and included profit before income taxes of approximately
RMB6,070.4 million, adjustments for non-cash items of approximately RMB3,037.2 million, and increase changes in working capital of approximately RMB711.9 million. Adjustments for non-cash items primarily consisted of (i) depreciation of
property, plant and equipment of approximately RMB2,819.4 million; (ii) interest expenses of approximately RMB1,448.7 million; and (iii) amortization of intangible assets of approximately RMB1,177.6 million. Positive changes in working
capital primarily consisted of (i) an increase in bills and accounts receivables of approximately RMB93.4 million; (ii) an increase in bills and accounts payables of approximately RMB246.1 million; (iii) an increase in land
subsidence, restoration, rehabilitation and environmental costs of approximately RMB484.7 million; and (iv) an increase in other payables and accruals of approximately RMB412.7 million, partially offset by an increase in prepayments and other
current assets of approximately RMB186.1 million.

Net cash from operating activities was approximately RMB17,977.3 million in
2011, and included profit before income taxes of approximately RMB12,259.5 million, adjustments for non-cash items of approximately RMB4,053.8 million, and positive changes in working capital of approximately RMB4,082.3 million. Adjustments for
non-cash items primarily consisted of (i) depreciation of property, plant and equipment of approximately RMB2,266.0 million; (ii) interest expenses of approximately RMB839.3 million; and (iii) amortization of intangible assets of
approximately RMB720.0 million. Positive changes in working capital primarily consisted of (i) a decrease in bills and accounts receivables of approximately RMB2,800.2 million; (ii) an increase in bills and accounts payables of
approximately RMB537.8 million; (iii) an increase in land subsidence, restoration, rehabilitation and environmental costs of approximately RMB556.7 million; and (iv) an increase in other payables and accruals of approximately RMB531.3
million, partially offset by an increase in prepayments and other current assets of approximately RMB730.7 million.

Cash
flows used in investing activities

Net cash used in investing activities was approximately RMB13,504.4 million in 2013,
and primarily consisted of purchase of property, plant and equipment of approximately RMB10,221.4 million, increase in term deposits of approximately RMB1,286.1 million and our investment of approximately RMB802.1 million to acquire Haosheng
Company.

Net cash used in investing activities was approximately RMB3,187.4 million in 2012, and primarily consisted of
purchase of property, plant and equipment of approximately RMB6,230.4 million and purchase of intangible assets of approximately RMB1,330.1 million, which were partially offset by a decrease in term deposits of approximately RMB6,356.3 million.

Net cash used in investing activities was approximately RMB25,611.0 million in 2011, and primarily consisted of
(i) acquisition of assets and equity of approximately RMB9,620.0 million; (ii) purchase of property, plant and equipment of approximately RMB8,619.5 million; and (iii) increase in term deposits of approximately RMB6,975.5 million.

Cash flows from (used in) financing activities

Net cash from financing activities was approximately RMB13,286.9 million in 2013, and primarily consisted of proceeds from bank borrowings
of approximately RMB21,103.1 million and proceeds from the offering of RMB denominated short-term notes and non-public issuance of financing instruments, which were partially offset by the repayment of bank borrowings of approximately RMB10,000.9
million and the repayment of other borrowings of approximately RMB2,057.4 million.

Net cash from financing activities was
approximately RMB1,145.1 million in 2012, and primarily consisted of bank borrowings of approximately RMB12,281.5 million and the aggregate net proceeds from the RMB Bond Offering and the US$ Bond Offering of approximately RMB11,262.9 million, which
were partially offset by repayment of bank borrowings of approximately RMB17,338.1 million, dividends paid of approximately RMB2,803.5 million and repayment of other borrowings of approximately RMB2,225.7 million.



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Net cash from financing activities was approximately RMB9,441.0 million in 2011, and
primarily consisted of bank borrowings of approximately RMB16,712.3 million, partially offset by (i) dividend payments of approximately RMB2,901.9 million; and (ii) the repayment of bank borrowings of approximately RMB4,367.1 million.

Inventories

Our inventories comprise methanol, auxiliary materials, spare parts and small tools used in the construction of mining structures and coal products in our stockpiles. The following table sets forth our
inventories as of the dates indicated:



|                                                 |  |                    |         |  |      |  |         |      |  |  |         | 
|------------------------------------------------ |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                                                 |  | As of December 31, |        
|                                                 |  | 2011               |         |  | 2012 |  |         | 2013 | 
|                                                 |  | (RMB in millions)  |        
|Methanol                                         |  |                    | 11.8    |  |      |  | 9.5     |      |  |  | 23.0    | 
|Auxiliary materials, spare parts and small tools |  |                    | 414.5   |  |      |  | 507.6   |      |  |  | 495.3   | 
|Coal products                                    |  |                    | 965.0   |  |      |  | 1,048.5 |      |  |  | 1,070.9 | 
|                                                 |  |                    |         |  |      |  |         |      |  |  |         | 
|Total                                            |  |                    | 1,391.2 |  |      |  | 1,565.5 |      |  |  | 1,589.2 | 
|                                                 |  |                    |         |  |      |  |         |      |  |  |         | 

Our inventories increased from approximately RMB1,391.2 million as of December 31, 2011 to
RMB1,565.5 million as of December 31, 2012, primarily due to increases in our inventory of auxiliary materials, spare parts and small tools and coal products. Our inventories increased slightly from approximately RMB1,565.5 million as of
December 31, 2012 to RMB1,589.2 million as of December 31, 2013.

Bills and Accounts Receivables

Bills and accounts receivables represent unconditional written orders issued by, or negotiated from, our customers for
completed sales orders which allow us to collect certain specified amounts from banks or other parties. These bills are non-interest-bearing and generally have a maturity of six months. The following table sets forth our bills and accounts
receivables as of the dates indicated:



|                                         |  |                    |         |   |      |  |         |      |  |  |         |  
|---------------------------------------- |  | ------------------ | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                                         |  | As of December 31, |        
|                                         |  | 2011               |         |   | 2012 |  |         | 2013 | 
|                                         |  | (RMB in millions)  |        
|Accounts receivable                      |  |                    | 818.0   |   |      |  | 928.9   |      |  |  | 1,469.7 |  
|Less: Impairment loss                    |  |                    | (4.2    | ) |      |  | (2.5    | )    |  |  | (8.3    | )
|                                         |  |                    |         |   |      |  |         |      |  |  |         |  
|                                         |  |                    | 813.8   |   |      |  | 926.4   |      |  |  | 1,461.4 |  
|Total bills receivable                   |  |                    | 6,498.3 |   |      |  | 6,533.2 |      |  |  | 7,558.1 |  
|                                         |  |                    |         |   |      |  |         |      |  |  |         |  
|Total bills and accounts receivable, net |  |                    | 7,312.1 |   |      |  | 7,459.6 |      |  |  | 9,019.5 |  
|                                         |  |                    |         |   |      |  |         |      |  |  |         |  

Our bills and accounts receivable increased from approximately RMB7,312.1 million as of December 31,
2011 to RMB7,459.6 million as of December 31, 2012. Our bills and accounts receivable increased from approximately RMB7,459.6 million as of December 31, 2012 to RMB9,019.5 million as of December 31, 2013, primarily due to the increase
of bills we received for the payment of coal in 2013 caused by the weak demand of coal. We allow a range of credit periods to our trade customers which take into account the credit rating of our customers. Our credit periods do not exceed 180 days.

The following table sets forth an aging analysis of our bills and accounts receivables based on the applicable invoice dates:



|               |  |                    |         |  |      |  |         |      |  |  |         | 
|-------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|               |  | As of December 31, |        
|               |  | 2011               |         |  | 2012 |  |         | 2013 | 
|               |  | (RMB in millions)  |        
|0 - 90 days    |  |                    | 4,037.9 |  |      |  | 3,423.0 |      |  |  | 8,685.1 | 
|91 - 180 days  |  |                    | 3,274.2 |  |      |  | 3,954.4 |      |  |  | 316.7   | 
|181 - 365 days |  |                    |        |  |      |  | 80.8    |      |  |  | 4.7     | 
|Over 1 year    |  |                    |        |  |      |  | 1.4     |      |  |  | 13.0    | 
|               |  |                    |         |  |      |  |         |      |  |  |         | 
|Total          |  |                    | 7,312.1 |  |      |  | 7,459.6 |      |  |  | 9,019.5 | 
|               |  |                    |         |  |      |  |         |      |  |  |         | 



12



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##### Table of Contents

Before accepting any new customer, we assess the potential customers credit quality
and define credit limits by customer. Limits attributed to customers are reviewed once a year. In 2011, 2012 and 2013, we did not have any significant trade receivables that were past due but not yet impaired as of the balance sheet dates above. We
do not hold any collateral over these balances. The average ages of these receivables were 86 days, 96 days and 49 days for 2011, 2012 and 2013, respectively. Our management closely monitors the credit quality of accounts receivables and considers
the balances that are neither past due nor impaired to be of good credit quality.

We have provided fully for all accounts
receivables over three years because our experience is such that receivables that are past due beyond three years are generally not recoverable. Receivables aged over four years are considered irrecoverable by management and are written off. We
wrote off our receivables of approximately RMB3.3 million in 2012. We did not write off any of our receivables in 2011 and 2013. The following table sets forth an analysis of our impairment losses on bills and accounts receivables:



|                       |  |                   |      |   |      |  |       |      |  |  |       |  
|---------------------- |  | ----------------- | ---- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                       |  | 2011              |      |   | 2012 |  |       | 2013 | 
|                       |  | (RMB in millions) |     
|Balance at January 1   |  |                   | 5.4  |   |      |  | 4.1   |      |  |  | 2.5   |  
|Provided for the year  |  |                   |     |   |      |  | 0.005 |      |  |  | 21.4  |  
|Reversal               |  |                   | (1.3 | ) |      |  | (1.6  | )    |  |  | (15.6 | )
|                       |  |                   |      |   |      |  |       |      |  |  |       |  
|Balance at December 31 |  |                   | 4.1  |   |      |  | 2.5   |      |  |  | 8.3   |  
|                       |  |                   |      |   |      |  |       |      |  |  |       |  

Our allowance for doubtful debts in 2011, 2012 and 2013 were approximately RMB4.1 million, RMB2.5 million
and RMB8.3 million, respectively, for individually impaired trade receivables, which were primarily receivables from corporate customers in the PRC and considered irrecoverable by management after considering the credit quality of those individual
customers, the ongoing relationship with us and the aging of these receivables. The recognized impairment represents the difference between the carrying amount of these trade receivables and the present value of the amounts. We do not hold any
collateral over these balances.

Prepayments and Other Receivables

The following table sets forth our prepayments and other receivables as of the dates indicated:



|                                        |  |                    |         |  |      |  |         |      |  |  |         | 
|--------------------------------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                                        |  | As of December 31, |        
|                                        |  | 2011               |         |  | 2012 |  |         | 2013 | 
|                                        |  | (RMB in millions)  |        
|Advances to suppliers                   |  |                    | 738.4   |  |      |  | 692.0   |      |  |  | 1,181.3 | 
|Deposit for environment protection      |  |                    | 651.7   |  |      |  | 813.2   |      |  |  | 719.8   | 
|Prepaid relocation costs of inhabitants |  |                    | 1,714.5 |  |      |  | 1,877.9 |      |  |  | 2,193.0 | 
|Others                                  |  |                    | 520.3   |  |      |  | 813.8   |      |  |  | 1,165.5 | 
|                                        |  |                    |         |  |      |  |         |      |  |  |         | 
|Total                                   |  |                    | 3,624.8 |  |      |  | 4,197.0 |      |  |  | 5,259.6 | 
|                                        |  |                    |         |  |      |  |         |      |  |  |         | 

Our prepayments and other receivables increased from approximately RMB3,624.8 million as of
December 31, 2011 to RMB4,197.0 million as of December 31, 2012, primarily due to tax expenses of approximately RMB178 million payable by our subsidiaries and a resettlement compensation of RMB59 million payable by the previous owner of
Wenyu Coal Mine. Our prepayments and other receivables increased from approximately RMB4,197.0 million as of December 31, 2012 to RMB5,259.6 million as of December 31, 2013, primarily due to the increase of RMB848.6 million in advances to
trade coal suppliers paid by our subsidiary Shandong Yanmei Rizhao Port Coal Storage and Blending Co., Ltd., which was consolidated into our financial statements in 2013.

As of December 31, 2011, 2012 and 2013, we had impairment losses of approximately RMB17.2 million, RMB25.3 million and RMB18.3 million, respectively, on our prepayments and other receivables. We did
not write off any impairment losses on our prepayments and other receivables in 2011 and 2012. We wrote off prepayments and other receivables of approximately RMB481,000 in 2013.

We have provided fully for all receivables over three years because our experience is such that receivables that are past due beyond
three years are generally not recoverable. We set aside full provisions for receivables that are past due beyond three years. Receivables are written off if aged over four years and considered irrecoverable by management after considering the credit
quality of the individual party and the nature of the amount overdue.



13



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##### Table of Contents

Bills and Accounts Payables

Our bills and accounts payable are primarily related to purchases from our suppliers and payables to export agents. The following table
sets forth our bills and accounts payables as of the dates indicated:



|                 |  |                    |         |  |      |  |         |      |  |  |         | 
|---------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                 |  | As of December 31, |        
|                 |  | 2011               |         |  | 2012 |  |         | 2013 | 
|                 |  | (RMB in millions)  |        
|Accounts payable |  |                    | 2,003.6 |  |      |  | 2,906.6 |      |  |  | 2,400.3 | 
|Bills payable    |  |                    | 237.2   |  |      |  | 3,905.1 |      |  |  | 316.4   | 
|                 |  |                    |         |  |      |  |         |      |  |  |         | 
|Total            |  |                    | 2,240.8 |  |      |  | 6,811.8 |      |  |  | 2,716.7 | 
|                 |  |                    |         |  |      |  |         |      |  |  |         | 

Our bills and accounts payable increased from approximately RMB2,240.8 million as of December 31,
2011 to RMB6,811.8 million as of December 31, 2012, primarily due to an increase in bills payable related to a capital return of approximately RMB3,836.6 million to former Gloucester shareholders. Our bills and accounts payable decreased from
approximately RMB6,811.8 million as of December 31, 2012 to RMB2,716.7 million as of December 31, 2013, primarily due to the capital return to former Gloucester shareholders we recorded in 2012.

The following table sets forth an aging analysis of our bills and accounts payables based on the applicable invoice dates as of the dates
indicated:



|               |  |                    |         |  |      |  |         |      |  |  |         | 
|-------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|               |  | As of December 31, |        
|               |  | 2011               |         |  | 2012 |  |         | 2013 | 
|               |  | (RMB in millions)  |        
|1 - 90 days    |  |                    | 1,790.7 |  |      |  | 6,384.2 |      |  |  | 2,351.8 | 
|91 - 180 days  |  |                    | 257.4   |  |      |  | 224.5   |      |  |  | 92.9    | 
|181 - 365 days |  |                    | 60.9    |  |      |  | 68.6    |      |  |  | 128.7   | 
|Over 1 year    |  |                    | 131.8   |  |      |  | 134.4   |      |  |  | 143.1   | 
|               |  |                    |         |  |      |  |         |      |  |  |         | 
|Total          |  |                    | 2,240.8 |  |      |  | 6,811.8 |      |  |  | 2,716.7 | 
|               |  |                    |         |  |      |  |         |      |  |  |         | 

The average credit period for accounts payable and bills payable is 90 days. We have financial risk
management policies in place to ensure that all payables are settled within the applicable credit timeframe.

Other
Payables and Accrued Expenses

The following table sets forth our other payables and accrued expenses as of the dates
indicated:



|                                                                                             |  |                    |         |  |      |  |         |      |  |  |         | 
|-------------------------------------------------------------------------------------------- |  | ------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                                                                                             |  | As of December 31, |        
|                                                                                             |  | 2011               |         |  | 2012 |  |         | 2013 | 
|                                                                                             |  | (RMB in millions)  |        
|Customers deposit                                                                           |  |                    | 1,523.6 |  |      |  | 1,368.7 |      |  |  | 852.2   | 
|Accrued wages                                                                                |  |                    | 1,047.1 |  |      |  | 1,084.2 |      |  |  | 1,054.5 | 
|Other taxes payable                                                                          |  |                    | 431.7   |  |      |  | 204.1   |      |  |  | 280.1   | 
|Payables in respect of purchases of property, plant and equipment and construction materials |  |                    | 2,733.7 |  |      |  | 3,662.8 |      |  |  | 1,268.4 | 
|Accrued freight charges                                                                      |  |                    | 3.9     |  |      |  | 9.4     |      |  |  | 2.3     | 
|Accrued repairs and maintenance                                                              |  |                    | 35.0    |  |      |  | 51.2    |      |  |  | 19.2    | 
|Staff welfare payable                                                                        |  |                    | 94.1    |  |      |  | 187.6   |      |  |  | 242.7   | 
|Withholding tax payable                                                                      |  |                    | 0.6     |  |      |  | 7.3     |      |  |  | 0.7     | 
|Deposits received from employees                                                             |  |                    | 12.8    |  |      |  | 24.7    |      |  |  | 14.0    | 
|Coal price adjustment fund                                                                   |  |                    | 47.1    |  |      |  | 52.0    |      |  |  |        | 
|Accrued land subsidence, restoration, rehabilitation and environmental costs                 |  |                    | 0.5     |  |      |  | 1.4     |      |  |  | 56.8    | 
|Payable on compensation fee of mining rights                                                 |  |                    | 552.7   |  |      |  |        |      |  |  |        | 
|Interest payable                                                                             |  |                    | 243.4   |  |      |  | 395.8   |      |  |  | 540.9   | 
|Payable on acquisition of Haoshengs equity                                                  |  |                    |        |  |      |  |        |      |  |  | 2,519.3 | 
|Others                                                                                       |  |                    | 618.5   |  |      |  | 1,964.5 |      |  |  | 1,534.0 | 
|                                                                                             |  |                    |         |  |      |  |         |      |  |  |         | 
|Total                                                                                        |  |                    | 7,344.8 |  |      |  | 9,013.8 |      |  |  | 8,385.1 | 
|                                                                                             |  |                    |         |  |      |  |         |      |  |  |         | 



14



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##### Table of Contents

Our other payables and accrued expenses increased from approximately RMB7,344.8 million as
of December 31, 2011 to RMB9,013.8 million as of December 31, 2012, primarily due to an resources compensation disbursement of RMB443 million payable to Yankuang Group and a deferred income liability of RMB298 million as the result of the
merger with Gloucester. Our other payables and accrued expenses decreased from approximately RMB9,013.8 million as of December 31, 2012 to RMB8,385.1 million as of December 31, 2013, primarily due to our settlements with suppliers for
purchases of property, plant and equipment and construction materials before December 31, 2013.

Working Capital
and Liabilities

We have historically maintained sufficient working capital for our operations. Our principal source of
cash in 2013 was cash generated from operating activities, offering of RMB denominated short term notes and non-public issuance of financing instruments and bank borrowings.

As of December 31, 2013, we recorded net current assets of approximately RMB2,708.4 million. Our current assets increased by RMB1,690.9 million, from RMB29,833.5 million as of December 31, 2012
to RMB31,524.4 million as of December 31, 2013, primarily as a result of an increase in bills and accounts receivable of approximately RMB1,559.9 million, an increase in term deposits of approximately RMB1,254.2 million and an increase in
prepayments and other receivables of approximately RMB1,062.6 million. The increase was partially offset by a decrease in bank balances and cash of approximately RMB1,794.8 million. Our current liabilities increased by RMB193.3 million, from
approximately RMB28,622.7 million as of December 31, 2012 to RMB28,816.0 million as of December 31, 2013, primarily due to an increase in borrowings due within one year of approximately RMB3,562.5 million and a contingent value rights
share liabilities of approximately RMB1.408.7 million, which was partially offset by a decrease in bills and accounts payable of approximately RMB4,095.1 million.

As of December 31, 2012 and 2013, we had cash and cash equivalents of approximately RMB12,717.4 million and RMB10,922.6 million, respectively. Our cash and cash equivalents primarily consist of cash
on hand and demand deposits with original maturities of three months or less that are placed with banks and other financial institutions.

As of December 31, 2012 and 2013, we had outstanding bank borrowings of approximately RMB40,996.4 million and RMB55,375.1 million, respectively. The following table sets forth the maturity profile of
our bank borrowings as of the dates indicated:



|                     |  |                    |          |  |      |  |          | 
|-------------------- |  | ------------------ | -------- |  | ---- |  | -------- | 
|                     |  | As of December 31, |         
|                     |  | 2012               |          |  | 2013 | 
|                     |  | (RMB in millions)  |         
|Less than one year   |  |                    | 7,712.6  |  |      |  | 11,275.0 | 
|One to three years   |  |                    | 2,079.9  |  |      |  | 13,254.4 | 
|Three to five years  |  |                    | 7,593.1  |  |      |  | 6,277.3  | 
|More than five years |  |                    | 23,610.8 |  |      |  | 24,568.3 | 
|                     |  |                    |          |  |      |  |          | 
|Total                |  |                    | 40,966.4 |  |      |  | 55,375.0 | 
|                     |  |                    |          |  |      |  |          | 

As of December 31, 2013, the interest rates relating to our bank borrowings ranged from 1.00% to
7.18% per annum. The interest rates for these bank borrowings are variable rates that are subject to adjustment based on the interest rate set by the PBOC or LIBOR. As of December 31, 2013, all of our bank loans carry variable interest
rates. As of the date of this annual report, our bank borrowings were denominated in Renminbi, U.S. dollars, Australian dollars and Euro. As of December 31, 2013, our total bank loans denominated in Renminbi amounted to approximately RMB20.1
billion, our total bank loans denominated in U.S. dollars amounted to approximately US$5.6 billion, our total bank loans denominated in Australian dollars amounted to approximately A$49.3 million and our total bank loans denominated in Euro amounted
to approximately 0.1 billion. See Note 35 of the consolidated financial statements for more information on our borrowings. The interest expenses and exchange rate fluctuations associated with our bank borrowings may impair our future
profitability.

We have, and in the future may continue to have, substantial debt. As of December 31, 2013, our long-term
debt to equity ratio was 100.3%. The interest expenses associated with these debts may impair our future profitability. We may issue additional long term debts to finance short term cash flow requirements as necessary.

Capital Expenditures

Our principal capital expenditures, incurred for the purchase and construction of property, plant and equipment, increased by RMB2,520.6 million, or 38.1%, from approximately RMB6,623.6 million in 2012 to
approximately RMB8,129.2 million in 2013. The increase was primarily due to an increased in the capital expenditure of the Company, Ordos Neng Hua and Haosheng Company of approximately RMB794.4 million, RMB1,092.3 million and RMB765.5 million,
respectively, which was partially offset by a decrease in the capital expenditure of Yancoal Australia of approximately RMB818.3 million.



15



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##### Table of Contents

Our estimated capital expenditures for 2014 are in the amount of RMB9,414.2 million. We plan
to finance our capital commitments primarily through a combination of funds generated from operations, bank borrowings and the proceeds of the offerings of corporate bonds. The following table sets forth our estimated capital expenditures for 2014
and actual capital expenditures we incurred in 2013.



|                                |                   |                                        |         |  |                                      |  |         | 
|------------------------------- | ----------------- | -------------------------------------- | ------- |  | ------------------------------------ |  | ------- | 
|Companies                       |                   | Estimated capital expenditure for 2014 |         |  | Capital expenditure incurred in 2013 | 
|                                | (RMB in millions) |                                       
|The Company                     |                   |                                        | 2,170.0 |  |                                      |  | 2,149.8 | 
|Shanxi Nenghua                  |                   |                                        | 123.7   |  |                                      |  | 49.9    | 
|Yulin Nenghua                   |                   |                                        | 93.7    |  |                                      |  | 25.9    | 
|Heze Nenghua                    |                   |                                        | 862.4   |  |                                      |  | 1,123.0 | 
|Huaju Energy                    |                   |                                        | 93.9    |  |                                      |  | 39.2    | 
|Ordos Neng Hua                  |                   |                                        | 2,863.2 |  |                                      |  | 3,118.4 | 
|Haosheng Company                |                   |                                        | 729.6   |  |                                      |  | 765.5   | 
|Yancoal Australia               |                   |                                        | 2,183.0 |  |                                      |  | 1,343.1 | 
|Yancoal International (Holding) |                   |                                        | 294.7   |  |                                      |  | 529.4   | 
|                                |                   |                                        |         |  |                                      |  |         | 
|Total                           |                   |                                        | 9,414.2 |  |                                      |  | 9,144.2 | 
|                                |                   |                                        |         |  |                                      |  |         | 



|C. | Research and Development, Patents and Licenses, Etc.
|-- | ----------------------------------------------------

One of our core strategies is to maintain our competitiveness and increase the efficiency of our mining operations through technology and innovation. In line with our development strategy with a focus on
technology innovation, we have established a multilayer system for integrating new technology into our operations consisting of various entities, including a technology committee, a professional committee, a technology center, as well as
relationships with external institutions or organizations with specialized technology development capacities. We have accumulated extensive experience and expertise in coal mining and coal processing procedures, particularly with respect to the
underground raw coal mining technology. For example, our independently developed longwall top caving mining method has been adopted by various international coal mining enterprises such as DBT and has been awarded the State Scientific and
Technological Progress Award (Second Class) by the National Office for Science and Technology Awards of the PRC in 2009. In 2013, we completed 70 technology improvement projects, among which, 22 projects have reached an international advanced level.
In addition, we obtained 71 patents and received 18 technological awards in 2013, which have enhanced our coal mining and related business operations. Our expenditures for research and development were RMB119.2 million, RMB301.6 million and RMB277.2
million in 2011, 2012 and 2013, respectively, accounting for 0.2%, 0.5% and 0.5%, respectively, of our total sales income for the same periods.

Our mining technology research and development efforts have contributed to increases in our production. Our predecessor first adopted the longwall top caving mining method in 1992. Since then, we have
focused on modifying and updating this method, taking into account the distinct geological conditions of our mining operations. Due to our research and development efforts, we have:



| |  |  | increased our production efficiency by utilizing improved mining extraction equipment;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | extended the length of certain longwall coal mine faces to approximately 300 meters, which reduced our tunneling, support equipment and related costs;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | reduced the number of coal pillars required to support mining areas, thereby enhancing our recovery;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | patented our advanced technology for longwall top caving mining in the PRC, Australia and South Africa. We believe the use of our longwall caving
extraction technology reduces the per-tonne production cost of our operations and improves the production efficiency;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | conducted research projects that contributed to the development and export of the technology for advanced two-pillar hydraulic roof supports for the
top coal caving process; Bucyrus International, Inc., the largest coal mining equipment supplier worldwide, signed a technology license agreement to manufacture and use the longwall top caving coal mining equipment in Australia;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | cooperated with Peabody to trial and commercialize longwall top caving coal mining equipment; and
| | - |  | -------------------------------------------------------------------------------------------------



| |  |  | implemented various innovative projects to improve equipment installation, safety, energy conservation and environmental protection measures in our
coal mining operations.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We intend to focus our future research and development efforts on improving our
longwall caving extraction technology, fully mechanized caving operations and related equipment and mining methods for medium and thick coal seams.



16



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##### Table of Contents

|D. | Trend Information
|-- | -----------------

Outlook for the Coal Market

The global economic recovery is expected to be modest in 2014. China will continue to restructure its economy and transform its economic growth mode. The international energy consumption structure is
expected to change. We expect the demand and supply of coal in both the international and domestic coal markets to be relatively balanced. As a result, we expect the coal price will fluctuate slightly. We intend to sell approximately
105 million tonnes of coal in 2014.

Outlook for the PRC Methanol Market

In 2014, we expect that supply will continue to exceed demand in the domestic methanol market. The demand for methanol remains weak due to
governmental control policies with respect to environmental protection and elimination of backward production capacity of certain high energy-consumption industries as well as the excess capacity in methanol industry.



|E. | Off-balance Sheet Arrangements
|-- | ------------------------------

As of December 31, 2013, other than the capital expenditure commitments and contractual obligations disclosed in this annual report, we did not have any off-balance sheet arrangements.



|F. | Tabular Disclosure of Contractual Obligations
|-- | ---------------------------------------------

The following table sets forth our contractual obligations and commercial commitments as of December 31, 2013:



|                                                            |                   |                        |          |  |                   |  |          |                   |  |  |                    |  |  |                     |         |  |  |  |          | 
|----------------------------------------------------------- | ----------------- | ---------------------- | -------- |  | ----------------- |  | -------- | ----------------- |  |  | ------------------ |  |  | ------------------- | ------- |  |  |  | -------- | 
|                                                            |                   | Payments Due by Period |         
|                                                            |                   | Total                  |          |  | Less thanone Year |  |          | One to threeyears |  |  | Three to fiveyears |  |  | More thanfive years |        
|                                                            | (RMB in millions) |                       
|Contractual Obligations                                     |                   |                        |          |  |                   |  |          |                   |  |  |                    |  |  |                     |         |  |  |  |          | 
|Unsecured bank borrowings                                   |                   |                        | 17,103.7 |  |                   |  | 4,604.6  |                   |  |  | 11,255.0           |  |  |                     | 1,234.1 |  |  |  | 10.0     | 
|Secured bank borrowings                                     |                   |                        | 19,150.3 |  |                   |  | 629.7    |                   |  |  | 1,892.9            |  |  |                     |        |  |  |  | 16,627.7 | 
|Finance leases                                              |                   |                        | 1,800.0  |  |                   |  |         |                   |  |  |                   |  |  |                     | 1,200.0 |  |  |  | 600.0    | 
|Guaranteed notes                                            |                   |                        | 267.5    |  |                   |  | 42.9     |                   |  |  | 106.5              |  |  |                     | 106.5   |  |  |  | 11.6     | 
|Loans pledged by machineries                                |                   |                        | 17,053.6 |  |                   |  | 5,997.9  |                   |  |  |                   |  |  |                     | 3,736.7 |  |  |  | 7,319.0  | 
|Capital commitments for the acquisition of assets           |                   |                        | 2,414.5  |  |                   |  | 2,414.5  |                   |  |  |                   |  |  |                     |        |  |  |  |         | 
|Mining right compensation fee                               |                   |                        | 1,625.1  |  |                   |  | 436.2    |                   |  |  | 792.6              |  |  |                     | 396.3   |  |  |  |         | 
|Amounts due to Controlling Shareholder and its subsidiaries |                   |                        | 44.8     |  |                   |  | 44.8     |                   |  |  |                   |  |  |                     |        |  |  |  |         | 
|                                                            |                   |                        |          |  |                   |  |          |                   |  |  |                    |  |  |                     |         |  |  |  |          | 
|Total                                                       |                   |                        | 59,459.4 |  |                   |  | 14,170.5 |                   |  |  | 14,047.0           |  |  |                     | 6,673.6 |  |  |  | 24,568.3 | 
|                                                            |                   |                        |          |  |                   |  |          |                   |  |  |                    |  |  |                     |         |  |  |  |          | 

The following table sets forth our consolidated interest-bearing borrowings as of December 31, 2012
and 2013:



|                          |                   |                    |          |  |      |  |          | 
|------------------------- | ----------------- | ------------------ | -------- |  | ---- |  | -------- | 
|                          |                   | As of December 31, |         
|                          |                   | 2012               |          |  | 2013 | 
|                          | (RMB in millions) |                   
|Secured bank borrowings   |                   |                    | 18,625.7 |  |      |  | 19,150.3 | 
|Unsecured bank borrowings |                   |                    | 8,900.1  |  |      |  | 17,103.7 | 
|                          |                   |                    |          |  |      |  |          | 
|Total                     |                   |                    | 27,529.9 |  |      |  | 36,254.0 | 
|                          |                   |                    |          |  |      |  |          | 

Secured Bank Borrowings

As of December 31, 2013, we had secured bank loans outstanding of approximately RMB19,150.3 million (approximately US$3,163.5
million), which primarily consisted of secured bank borrowings obtained for financing the acquisition of Felix in 2009. The borrowings are guaranteed by the Company and counter-guaranteed by our Controlling Shareholder. The borrowings are secured by
a portion of our term deposits. As of December 31, 2013, we had term deposits of approximately RMB104,948 million that secured bank borrowings.

We have obtained two amendments to the loan agreements from Bank of China in November 2013 to amend certain debt covenant requirements prior to December 31, 2013. We will continue to monitor our
indebtedness, working capital and liquidity requirements. We believe we will be able to comply with the debt covenant requirements or seek the necessary waivers or amendments if we believe we are unable to comply with such debt covenants. Therefore,
we do not expect this to materially and adversely affect our liquidity.



17



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##### Table of Contents

The debt covenants only apply to our subsidiary, Yancoal Australia, and hence the actual
covenant ratios/amounts disclosed above cannot be reconciled to the IFRS amounts presented in our financial statements.

We
would also like to inform you that subsequently, we obtained two additional amendments from Bank of China in June 2014 to further defer the testing of interest coverage ratio to 12 months ending June 30, 2015, which also reduced the interest cover
ratio from not less than 1.5 to not less than 1.15, which we will disclose in the Form 20-F for the year ended December 31, 2014.

Borrowings of RMB5,825.8 million (US$962.4 million) carried interest at three-month LIBOR plus a margin of 0.75% (approximately 0.99%) and borrowings of RMB303.4 million (US$50.1 million) carried interest
at three-month LIBOR plus a margin of 0.8% (approximately 1.04%). The borrowings of approximately RMB11,101.2 million (approximately US$1,833.8 million) carried interest at three-month LIBOR plus 2.8% (approximately 3.04%). Other borrowings incurred
in connection with our acquisition of Gloucester, amounting to approximately RMB90.9 million, (approximately US$15.0 million) carried interest at 5.68%. We have obtained waiver from the bank in Australia to waive certain debt conventant requirements
prior to December 31, 2013. For more information on our secured borrowings, please see Note 35 to the consolidated financial statements.

Unsecured Bank Borrowings

We had unsecured bank borrowings of
RMB17,103.7 million as of December 31, 2013, including a loan in the amount of RMB4.6 billion (US$755.0 million), carrying interest at three-month LIBOR plus a margin of 1.8% to 3.5% per annum, obtained by Yancoal International to replace
the other loans for the acquisition of potash exploration permits in Canada and a loan in the amount of RMB88 million (US$14.5 million), carrying interest at 6.55% per annum, obtained by Shanxi Heshun Tianchi Energy Company Limited for the
acquisition of Tianchi Coal Mine. For more information about our unsecured borrowings, please see Note 35 to the consolidated financial statements to this annual report.

The Offering of RMB Denominated Short Term Notes and Non-public Issuance of Financing Instruments

See Item 4. Information on the Company  A. History and Development of our Company  The Offering of RMB Denominated Short term notes and Non-public Issuance of Financing
Instruments.

Amounts due to Controlling Shareholder and its Subsidiaries

The amounts due to the Controlling Shareholder and its subsidiary companies do not bear any interest and are unsecured. The following
table sets forth the amounts due to the Controlling Shareholder and its subsidiary companies as of December 31, 2012 and 2013.



|                                                |  |                    |            |   |      |  |         |  
|----------------------------------------------- |  | ------------------ | ---------- | - | ---- |  | ------- | -
|                                                |  | As of December 31, |           
|                                                |  | 2012               |            |   | 2013 | 
|                                                |  | (RMB000)          |           
|Term for Repayment                              |  |                    |            |   |      |  |         |  
|Within one year                                 |  |                    | 1,767,998  |   |      |  | 44,737  |  
|More than one year, but not exceeding two years |  |                    |           |   |      |  |        |  
|                                                |  |                    |            |   |      |  |         |  
|Total due                                       |  |                    | 1,767,998  |   |      |  | 44,737  |  
|Less: amounts due within one year               |  |                    | (1,767,998 | ) |      |  | (44,737 | )
|Amounts will due over one year                  |  |                    |           |   |      |  |        |  

As of December 31, 2013, neither the Controlling Shareholder nor its subsidiaries had used our funds
for non-operational matters.

Critical Accounting Policies

We prepare our consolidated financial statements in accordance with IFRS as issued by the IASB. The preparation of these financial
statements requires us to make estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately. These judgments, estimates and assumptions are based on the historical experience of our
management as well as other relevant factors. Actual results may differ from these estimates. We review the foregoing judgments, estimates and assumptions regularly on a going concern basis. Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical estimates that we have made in the process of applying the accounting policies and that have the most
significant effect on the amounts recognized in financial statements.



18



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##### Table of Contents

Depreciation

The cost of mining structures is depreciated using the units of production method based on the estimated production volume for which the structure was designed. Management exercises its judgment in
estimating the useful lives of the depreciable assets and the production volume of each mine. The estimated coal production volume of each mine is updated on a regular basis and takes into account recent production and technical information of each
mine. These changes are considered changes in estimates for accounting purposes and are reflected on a prospective basis in related depreciation rates. Estimates of the production volumes are inherently imprecise and represent only approximate
amounts because of the subjective judgments involved in developing such information.

Amortization of assets

Mining reserves, mining resources and rail access rights are amortized on a straight-line basis or unit of production
basis over the shorter of their useful lives and the contractual period. The expensing of overburden removal costs is based on saleable coal production over the estimated economically recoverable reserves. The useful lives are estimated on the basis
of the total proven and probable reserves of a coal mine. Proven and probable coal reserve estimates are updated on a regular basis and take into account each mines recent production and technical information.

Provision for land subsidence, restoration, rehabilitation and environmental costs

The provision for land subsidence, restoration, rehabilitation and environmental costs is reviewed regularly to verify that it properly
reflects the remaining obligation arising from the current and past mining activities. Provisions for land subsidence, restoration, rehabilitation and environmental costs are determined by our management based on past experience, its estimate of
current and future costs and predictions for government policies.

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The
determination of value in use requires us to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate the present value. As of December 31, 2013, the carrying amount of
goodwill was approximately RMB2,460.6 million. During the year ended December 31, 2013, no impairment loss on goodwill was recognized by the Group. Cash flow projections during the budget period for each of the above units are based on the
budgeted revenue and expected gross margins during the budget period and the raw materials price inflation during the budget period. Expected cash inflows/outflows have been determined based on past performance and managements market
development expectations.

Estimated impairment of property, plant and equipment

When there are indications of impairment, we take into consideration the estimate of future cash flows. The amount of the impairment loss
is measured as the difference between the assets carrying amount and the present value of estimated future cash flows. When actual future cash flows are less than expected, a material impairment loss may arise. In estimating future cash flows,
management takes into account recent production and technical advancements. As price and cost levels change from year to year, the estimate of future cash flows also changes. Notwithstanding that management has considered all the available
information in making their impairment assessment, inherent uncertainty exists as to the conditions of mines and the environment, and actual write-offs may be higher than the estimated amounts. As of December 31, 2013, the carrying amount of
property, plant and equipment was approximately RMB41,896.5 million. During the year ended December 31, 2013, no property, plant and equipment was written off as expenses. We did not recognize any impairment loss on property, plant and
equipment during the year ended December 31, 2013.

Most of the coal sales by Premier and Wesfarmers Char are governed by
a contract signed with an independent power station. The remaining coal sales are to independent third parties which are sold at market prices. The contract with the power station was a required condition in order for the government to grant the
mining rights to Premier and Wesfarmers Char. The sales price under the contract is below market price and Premier and Wesfarmers Char are unable to negotiate to revise the terms of the existing contract, including the sale price of coal. Given the
current market price of coal and rising costs, the Company also expected that the power station may purchase more coal from Premier and Wesfarmers Char, which will drive down the Companys overall average sales prices. In 2012, a combined
assessment of Premier and Wesfarmers Char, being a cash-generating unit, was performed, and hence in 2012, the Company recorded impairment on intangible assets (mining reserves and mining resources) of RMB417,214,000, property, plant and equipment
(mining structures) of RMB226,925,000 and goodwill of RMB17,625,000 as selling, general and administrative expenses in its statement of comprehensive income as set out in Note 9 to the financial statements. The Company used the value-in-use method
to assess the impairment and the key assumptions included the future market price of the coal, sales volume, and mining costs. The changes in these key assumptions that were applied in the impairment analysis were a decrease of the average coal
price from AUD76 per tonne to AUD24 per tonne, a decrease in total sales volume from 141 million tonne to 58 million tonne, an increase in average nominal operating cost from AUD48 per tonne to AUD62 per tonne and an increase in capital
expenditure from AUD460 million to AUD584 million. During the year, no provision for impairment losses were made for Premier and Wesfarmers Char by the Group.



19



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##### Table of Contents

Estimated impairment of mining reserves

When there are indications of impairment, we take into consideration the estimate of future cash flows. The amount of the impairment loss
is measured as the difference between the assets carrying amount and the present value of estimated future cash flows. When actual future cash flows are less than expected, a material impairment loss may arise. In estimating future cash flows,
management takes into account recent production and technical advancements. As price and cost levels change from year to year, the estimate of future cash flows also changes. Notwithstanding that management has considered all the available
information in making their impairment assessment, inherent uncertainty exists as to the conditions of mines and the environment, and actual write-offs may be higher than the estimated amounts.

The recoverable amount of cash generating units is assessed by management at the operating segment level. Business performance is
reviewed by management on a mine by mine basis and each mine is considered to be a separate cash generating unit. The recoverable amount of each cash generating unit at December 31, 2013 was determined using the value in use method.

Value in use has been determined using a discounted cash flow model and key assumptions include coal prices, foreign exchange rates,
production and capital costs, discount rate and coal reserves and resources. In determining the value assigned to each key assumption, management has used external sources of information and utilized the expertise of external and/or internal
consultants and experts to validate entity specific assumptions such as coal reserves and resources.

Based on the impairment
review, the recoverable amounts of coal reserves of Moolarben and Stratford & Duralie, both of which are coal mines of Yancoal Australia, were determined to be less than the carrying amounts and hence resulting an impairment loss of
RMB2,052,238,000, predominantly due to forecasted global economic conditions and coal sales prices. The cash flow forecast used assumed an average long term real coal prices of US$79  US$158 per tonne, AUD/US$ exchange rate declining from year
end spot rate of AUD0.8948 to AUD0.80 over the next five years and a pre-tax discount rate of 15.7%. Production and capital costs were based on the estimate of forecasted geological conditions, stage of existing plant and equipment and future
production levels. The recoverable amount is also dependent on the life of mines which is based on the annual coal production forecast.

In the process of applying our accounting policies, management has made the following accounting judgments:

Acquisitions

During the year, we acquired several subsidiaries or business
as set out in Notes 43 to the consolidated financial statements included in this annual report. We determined whether acquisitions were to be accounted for as an acquisition of business or an acquisition of assets based on factors including
(i) whether the acquiree has relevant input, process or output and (ii) whether the acquiree has planned principal activities or is pursuing a plan to produce output and has access to a customer base.

In addition, management also made judgments in determining whether we would register the transfer of certain operating licenses
immediately upon the payment of consideration.

Recent Changes in Accounting Pronouncements

In the current year, we have applied, for the first time, a number of new standards and interpretations, amended and revised standards and
interpretations (new IFRSs) issued by the IASB and the International Financial Reporting Interpretations Committee (the IFRIC) of the IASB which are effective for our fiscal year beginning January 1, 2012:



|                                          |  |                                                                                                                         
|----------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------
|IFRSs (Amendments)                        |  | Annual Improvements to IFRSs 2009-2011 Cycle                                                                            
|IFRS 7 (Amendments)                       |  | Disclosures  Offsetting Financial Assets and Financial Liabilities                                                     
|IFRS 10                                   |  | Consolidated Financial Statements                                                                                       
|IFRS 11                                   |  | Joint Arrangements                                                                                                      
|IFRS 12                                   |  | Disclosure of Interests in Other Entities                                                                               
|IFRS 10, IFRS 11 and IFRS 12 (Amendments) |  | Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
|IFRS 13                                   |  | Fair Value Measurement                                                                                                  
|IAS 1 (Amendments)                        |  | Presentation of Items of Other Comprehensive Income                                                                     
|IAS 19 (Revised)                          |  | Employee Benefits                                                                                                       
|IAS 28 (Revised)                          |  | Investments in Associates and Joint Ventures                                                                            
|IFRIC 20                                  |  | Stripping Costs in the Production Phase of a Surface Mine                                                               

Except as described above, the accounting policies adopted for the current year are consistent with those
adopted for the Groups financial statements for the year ended December 31, 2012.



20



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##### Table of Contents

Except as described below, the application of the above new or revised IFRSs for the current
year had no material impact on the amounts reported and/or disclosures set out in the consolidated financial statements for the year.



| |  |  | IFRS 11 Joint Arrangements
| | - |  | --------------------------

IFRS 11 introduces new accounting requirements for joint arrangements, replacing IAS 31-Interests in Joint Ventures. The option to apply the proportional consolidation method when accounting for jointly
controlled entities is removed. Additionally, IFRS 11 eliminates jointly controlled assets to now only differentiate between joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control
have rights to the assets and obligations for the liabilities. A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets.

After the review and assessment made by the directors of the Company, the directors concluded that the Groups investment which was classified as jointly controlled entities under IAS 31 should be
classified as joint ventures under IFRS 11 and will continue to apply the equity method.



| |  |  | IFRS 13 Fair Value Measurement
| | - |  | ------------------------------

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or
disclosures about those measurements), except for certain exemptions. IFRS 13 requires the disclosures of fair values through a fair value hierarchy. The hierarchy categorizes the inputs used in valuation techniques into three levels.
The hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure fair value are categorized into different
levels of the fair value hierarchy, the fair value measurement is categorized in its entirety in the level of the lowest level input that is significant to the entire measurement.

For disclosure relating the fair value, please refer to note 42.



| |  |  | IAS 1 (Amendments) Presentation of Items of Other Comprehensive Income
| | - |  | ----------------------------------------------------------------------

The amendments to IAS 1 require additional disclosures to be made in the other comprehensive section such that items of other
comprehensive income are grouped into two categories: (a) items that will not be reclassified subsequently to profit or loss; and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. Income
tax on items of other comprehensive income is required to be allocated on the same basis  the amendments do not change the existing option to present items of other comprehensive income either before tax or net of tax. The amendments have been
applied retrospectively, and hence the presentation of items of other comprehensive income has been modified to reflect the changes.



| |  |  | IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
| | - |  | ------------------------------------------------------------------

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine applies to waste removal costs incurred during the production phase of
a surface mine (production stripping costs). Under the Interpretation, the costs from this waste removal activity (stripping) which provide improved access to ore are recognized as a non-current asset (stripping
activity asset) when certain criteria are met, whereas the costs of stripping activities where the benefit is realised in the form of inventory produced are accounted for in accordance with IAS 2 Inventories. The stripping activity asset is
accounted for as an addition to, or as an enhancement of, an existing asset and classified as tangible or intangible according to the nature of the existing asset of which it forms part. When the costs of the stripping activity asset and the
inventory produced are not separately identifiable, production stripping costs are allocated between the inventory produced and the stripping activity asset by using an allocation basis that is based on a relevant production measure.

Prior to the effective of IFRIC 20, stripping costs of the Group and its joint ventures which comprises the accumulation of expenses
incurred to enable access to the coal seams, and includes direct removal costs, machinery and plant running costs are deferred then charged to the consolidated income statement in subsequent periods on the basis of run-of-mine (ROM) coal
tonnes mined. This is calculated by multiplying the ROM coal tonnes mined during the year by the weighted average cost to remove a bank cubic metre (BCM) of waste by the stripping ratio (ratio of waste removed in BCMs to ROM coal tonnes
mined). The stripping ratio of the Companys Australian subsidiaries is based on the JORC reserves of each mine.

The
requirements in IFRIC 20 differs from the Group and its joint ventures previous policies in that only waste stripping costs which provide improved access to ore can be capitalized when certain criteria are met, and the capitalization and
amortization of waste stripping costs is undertaken at the level of individual deposits or components thereof rather than on a whole-for-mine basis. In addition, specific transitional rules are provided to deal with any opening deferred stripping
balances recognised under the previous accounting policies.



21



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##### Table of Contents

As a result of the adoption of the IFRIC 20, any previously recognised asset that resulted
from stripping activity undertaken during the production phase (predecessor stripping asset) is reclassified as part of the existing asset to which the stripping activity related, to the extent that there remains an identifiable component of the
orebody with which the predecessor stripping asset can be associated. Such balances are then amortised over the remaining expected useful life of the identified component of the orebody to which each predecessor stripping asset balance relates. If
there is no identifiable component of the orebody to which the predecessor asset relates, it has been written off through opening retained earnings at the beginning of the earliest period presented. IFRIC 20 has been applied by Group and its joint
ventures prospectively to production stripping costs incurred on or after the beginning of the earliest period presented.



| |  |  | IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine  continued
| | - |  | ------------------------------------------------------------------------------

The effects of the application of IFRIC 20 on the consolidated balance sheet at January 1, 2012 and December 31, 2012 are as
follows:



|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|------------------------------------------- |  | -------------------- | -------- | - | -------------------------- |  | --------- | ----------------------- |  |  | ---------- | - |  | ------------------------ | ----------- | - |  |  | ---------- | -
|                                            |  | Assets               |          |   | Liabilities                |  |           | Equity                  | 
|                                            |  | Overburdenin advance |          |   | Interests injoint ventures |  |           | Deferred taxliabilities |  |  | Reserves   |   |  | Non-controllinginterests |            
|                                            |  | RMB000              |          |   | RMB000                    |  |           | RMB000                 |  |  | RMB000    |   |  | RMB000                  |            
|                                            |  |                      |          |   |                           
|At January 1, 2012 as previously reported   |  |                      | 261,441  |   |                            |  | 19,453    |                         |  |  | (3,895,304 | ) |  |                          | (37,716,090 | ) |  |  | (690,560   | )
|Adjustment of IFRIC 20                      |  |                      | (261,441 | ) |                            |  |          |                         |  |  | 78,431     |   |  |                          | 183,010     |   |  |  |           |  
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|At January 1, 2012 as restated              |  |                      |         |   |                            |  | 19,453    |                         |  |  | (3,816,873 | ) |  |                          | (37,533,080 | ) |  |  | (690,560   | )
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|                                            |  |                      |          |   |                           
|At December 31, 2012 as previously reported |  |                      | 448,889  |   |                            |  | 1,086,985 |                         |  |  | (7,730,127 | ) |  |                          | (40,907,956 | ) |  |  | (3,264,842 | )
|Adjustment of IFRIC 20                      |  |                      | (448,889 | ) |                            |  | (88,358   | )                       |  |  | 166,179    |   |  |                          | 296,322     |   |  |  | 74,746     |  
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|At December 31, 2012 as restated            |  |                      |         |   |                            |  | 998,627   |                         |  |  | (7,563,948 | ) |  |                          | (40,611,634 | ) |  |  | (3,190,096 | )
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  

IFRIC 20 had no material impact on the consolidated balance sheet as at January 1, 2011.

The effects of IFRIC 20 on the consolidated income statement for the year ended December 31, 2012 and for the year ended
December 31, 2011 are as follows:



|                                     |  |                                             |         |  |                                          |  |        |                        |  |  |                               |   |  |                                     |         |  |                                  |  |      |  |  |  |      | 
|------------------------------------ |  | ------------------------------------------- | ------- |  | ---------------------------------------- |  | ------ | ---------------------- |  |  | ----------------------------- | - |  | ----------------------------------- | ------- |  | -------------------------------- |  | ---- |  |  |  | ---- | 
|                                     |  | Increase incost of salesand serviceprovided |         |  | Increase inshare of lossof jointventures |  |        | Decreasein incometaxes |  |  | Decrease inprofit forthe year |   |  | Decrease inearnings pershare, basic |         |  | Decrease inearningsper ADS,basic | 
|                                     |  | RMB000                                     |         |  | RMB000                                  |  |        | RMB000                |  |  | RMB000                       |   |  | RMB000                             |         |  | RMB000                          | 
|                                     |  |                                             |         |  |                                          | 
|For the year ended December 31, 2011 |  |                                             | 261,441 |  |                                          |  |       |                        |  |  | (78,431                       | ) |  |                                     | 183,010 |  |                                  |  | 0.04 |  |  |  | 0.37 | 
|For the year ended December 31, 2012 |  |                                             | 187,448 |  |                                          |  | 88,358 |                        |  |  | (87,748                       | ) |  |                                     | 188,058 |  |                                  |  | 0.03 |  |  |  | 0.31 | 

The Group has not early applied the following new and revised standards, amendments or interpretations
that have been issued but are not yet effective.



|                                          |  |                                                               
|----------------------------------------- |  | --------------------------------------------------------------
|Amendments to IFRSs                       |  | Annual Improvements to IFRSs 2010-2012
Cycle2                 
|Amendments to IFRSs                       |  | Annual Improvements to IFRSs 2011-2013
Cycle2                 
|IFRS 9                                    |  | Financial
Instruments3                                        
|Amendments to IFRS 9 and IFRS 7           |  | Mandatory Effective Date of IFRS 9 and Transition Disclosures3
|Amendments to IFRS 10, IFRS 12 and IAS 27 |  | Investment Entities1                                          
|Amendments to IAS 19                      |  | Defined Benefit Plans: Employee
Contributions2                
|Amendments to IAS 32                      |  | Offsetting Financial Assets and Financial
Liabilities1        
|Amendments to IAS 36                      |  | Recoverable Amount Disclosures for Non-Financial
Assets1      
|Amendments to IAS 39                      |  | Novation of Derivatives and Continuation of Hedge Accounting1 
|IFRIC - Int 21                            |  | Levies1                                                       



|1 | Effective for annual periods beginning on or after January 1, 2014, with earlier application permitted.
|- | -------------------------------------------------------------------------------------------------------

|2 | Effective for annual periods beginning on or after July 1, 2014, except as disclosed below. Early application is permitted.
|- | ---------------------------------------------------------------------------------------------------------------------------

|3 | Available for application - the mandatory effective date will be determined when the outstanding phases of IFRS 9 are finalised.
|- | --------------------------------------------------------------------------------------------------------------------------------



22



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##### Table of Contents

Annual Improvements to IFRSs 2010-2012 Cycle

The Annual Improvements to IFRSs 2010-2012 Cycle include a number of amendments to various IFRSs, which are summarised below.

The amendments to IFRS 2 (i) change the definitions of vesting condition and market condition; and
(ii) add definitions for performance condition and service condition which were previously included within the definition of vesting condition. The amendments to IFRS 2 are effective for share-based payment
transactions for which the grant date is on or after July 1, 2014.

The amendments to IFRS 3 clarify that contingent
consideration that is classified as an asset or a liability should be measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial instrument within the scope of IFRS 9 or IAS 39 or a
non-financial asset or liability. Changes in fair value (other than measurement period adjustments) should be recognised in profit and loss. The amendments to IFRS 3 are effective for business combinations for which the acquisition date is on or
after July 1, 2014.

The amendments to IFRS 8 (i) require an entity to disclose the judgements made by management in
applying the aggregation criteria to operating segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have similar economic
characteristics; and (ii) clarify that a reconciliation of the total of the reportable segments assets to the entitys assets should only be provided if the segment assets are regularly provided to the chief operating
decision-maker.

The amendments to the basis for conclusions of IFRS 13 clarify that the issue of IFRS 13 and consequential
amendments to IAS 39 and IFRS 9 did not remove the ability to measure short-term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial.

The amendments to IAS 16 and IAS 38 remove perceived inconsistencies in the accounting for accumulated depreciation/amortisation when an
item of property, plant and equipment or an intangible asset is revalued. The amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the carrying amount of the asset and that accumulated
depreciation/amortisation is the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.

The amendments to IAS 24 clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity
should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not
required.

The directors do not anticipate that the application of the amendments included in the Annual Improvements to IFRSs
2010-2012 Cycle will have a material effect on the Groups consolidated financial statements.

Annual Improvements to
IFRSs 2011-2013 Cycle

The Annual Improvements to IFRSs 2011-2013 Cycle include a number of amendments to various IFRSs,
which are summarised below.

The amendments to IFRS 3 clarify that the standard does not apply to the accounting for the
formation of all types of joint arrangement in the financial statements of the joint arrangement itself.

The amendments to
IFRS 13 clarify that the scope of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with,
IAS 39 or IFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within IAS 32. The amendments to IAS 40 clarify that IAS 40 and IFRS 3 are not mutually exclusive and application of both standards
may be required. Consequently, an entity acquiring investment property must determine whether:



| | (a) | the property meets the definition of investment property in terms of IAS 40; and
| | --- | --------------------------------------------------------------------------------



| | (b) | the transaction meets the definition of a business combination under IFRS 3.
| | --- | ----------------------------------------------------------------------------

The directors do not anticipate that the application of the amendments included in the Annual Improvements to IFRSs 2011-2013 Cycle will have a material effect on the Groups consolidated financial
statements.



23



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IFRS 9 Financial Instruments

IFRS 9 issued in 2009 introduces new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently
amended in 2010 to include the requirements for the classification and measurement of financial liabilities and for derecognition, and further amended in 2013 to include the new requirements for hedge accounting.

Key requirements of IFRS 9 are described as follows:



| |  |  | All recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement are subsequently measured at
amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on
the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent reporting periods. In
addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in
profit or loss.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | With regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9 requires that the amount of change
in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liabilitys credit risk in
other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value of financial liabilities attributable to changes in the financial liabilities credit risk are not subsequently reclassified to
profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss was presented in profit or loss.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The new general hedge accounting requirements retain the three types of hedge accounting. However, greater flexibility has been introduced
to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In
addition, the effectiveness test has been overhauled and replaced with the principle of an economic relationship. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an
entitys risk management activities have also been introduced.

The directors anticipate that the adoption of IFRS 9 in
the future may have a material impact on the amounts reported in respect of the Groups financial assets and financial liabilities (e.g. the Groups investments in equity securities that are currently classified as available-for-sale
investments may have to be measured at fair value at the end of subsequent reporting periods, with changes in the fair value being recognised in other comprehensive income. Regarding the Groups financial assets, it is not practicable to
provide a reasonable estimate of that effect until a detailed review has been completed.

Amendments to IFRS 10, IFRS 12
and IAS 27 Investment Entities

The amendments to IFRS 10 define an investment entity and require a reporting entity that
meets the definition of an investment entity not to consolidate its subsidiaries but instead to measure its subsidiaries at fair value through profit or loss in its financial statements.

To qualify as an investment entity, a reporting entity is required to:



| |  |  | obtain funds from one or more investors for the purpose of providing them with professional investment management services;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | measure and evaluate performance of substantially all of its investments on a fair value basis.
| | - |  | -----------------------------------------------------------------------------------------------

Consequential amendments have been made to IFRS 12 and IAS 27 to introduce new disclosure requirements for investment entities.

The directors of the Company do not anticipate that the investment entities amendments will have any effect on the
Groups consolidated financial statements as the Company is not an investment entity.

Amendments to IAS 19 Defined
Benefit Plans: Employee Contributions

The amendments to IAS 19 clarify how an entity should account for contributions made
by employees or third parties to defined benefit plans, based on whether those contributions are dependent on the number of years of service provided by the employee.



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For contributions that are independent of the number of years of service, the entity may
either recognise the contributions as a reduction in the service cost in the period in which the related service is rendered, or to attribute them to the employees periods of service using the projected unit credit method; whereas for
contributions that are dependent on the number of years of service, the entity is required to attribute them to the employees periods of service.

The directors of the Company do not anticipate that the application of these amendments to IAS 19 will have a material impact on the Groups consolidated financial statements as the Group does not
have any defined benefit plans.

Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities

The amendments to IAS 32 clarify existing application issues relating to the offset of financial assets and financial liabilities
requirements. Specifically, the amendments clarify the meaning of currently has a legally enforceable right of set-off and simultaneous realisation and settlement.

The directors of the Company do not anticipate that the application of these amendments to IAS 32 will have a material impact on the
Groups consolidated financial statements as the Group does not have any financial assets and financial liabilities that qualify for offset.

Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets

The amendments to IAS 36 remove the requirement to disclose the recoverable amount of a cash generating unit (CGU) to which goodwill or
other intangible assets with indefinite useful lives had been allocated when there has been no impairment or reversal of impairment of the related CGU. Furthermore, the amendments introduce additional disclosure requirements regarding the fair value
hierarchy, key assumptions and valuation techniques used when the recoverable amount of an asset or CGU was determined based on its fair value less costs of disposal.

The directors of the Company do not anticipate that the application of these amendments to IAS 36 will have a material impact on the Groups consolidated financial statements.

Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting

The amendments to IAS 39 provide relief from the requirement to discontinue hedge accounting when a derivative hedging instrument is
novated under certain circumstances. The amendments also clarify that any change to the fair value of the derivative hedging instrument arising from the novation should be included in the assessment of hedge effectiveness.

The directors of the Company do not anticipate that the application of these amendments to IAS 39 will have material effect on the
Groups consolidated financial statements as the Group does not have any derivatives that are subject to novation.

IFRIC  Int 21 Levies

IFRIC  Int 21 Levies addresses the issue of when to recognise a liability to pay a levy. The Interpretation defines a levy, and specifies that the obligating event that gives rise to the liability
is the activity that triggers the payment of the levy, as identified by legislation. The Interpretation provides guidance on how different levy arrangements should be accounted for, in particular, it clarifies that neither economic compulsion nor
the going concern basis of financial statements preparation implies that an entity has a present obligation to pay a levy that will be triggered by operating in a future period.

The directors of the Company anticipate that the application of IFRIC  Int 21 will not have any material impact on the Groups
consolidated financial statements as the Group does not have any levy arrangements.

The directors considered that except for
the abovementioned standards or interpretations, the application of other standards or interpretations will have no material impact to the Groups financial statements.



|G. | Safe Harbor
|-- | -----------

See the
section headed Cautionary Statement Regarding Forward-Looking Statements.



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|ITEM 19. | EXHIBITS
|-------- | --------

Documents filed as exhibits to
this Annual Report:



|              |  |                                                                                                                                                       
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                           
|              | 
|12.1          |  | Certification of general manager pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Act of 1934                                         
|              | 
|12.2          |  | Certification of chief financial officer pursuant to Rule 13a-14(a) promulgated under the U.S. Securities Act of 1934                                 
|              | 
|13.1          |  | Certification of general manager pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002        
|              | 
|13.2          |  | Certification of chief financial officer pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002



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SIGNATURES

The registrant hereby certifies that it meets all the requirements for filing on Form 20-F/A and that it has duly caused and authorized
the undersigned to sign this annual report on its behalf.



|                      |  |                                                  |  |                  
|--------------------- |  | ------------------------------------------------ |  | -----------------
|                      |  | YANZHOU COAL MINING COMPANY LIMITED (Registrant)
|                      |  |                                                 
|Date: August 28, 2014 |  | By:                                              |  | /S/    Yin Mingde
|                      |  | Name:                                            |  | Yin Mingde       
|                      |  | Title:                                           |  | General Manager  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011

AND REPORTS OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



|                                                         |  |          
|-------------------------------------------------------- |  | ---------
|CONTENTS                                                 |  | PAGE(S)  
|REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |  | F1 - F2  
|                                                         | 
|CONSOLIDATED INCOME STATEMENTS                           |  | F3       
|                                                         | 
|CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME          |  | F4       
|                                                         | 
|CONSOLIDATED BALANCE SHEETS                              |  | F5       
|                                                         | 
|CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY             |  | F6       
|                                                         | 
|CONSOLIDATED STATEMENTS OF CASH FLOWS                    |  | F7 & F8  
|                                                         | 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS           |  | F9  F119



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##### Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

YANZHOU COAL MINING COMPANY LIMITED兖州煤业股份有限公司

(A joint stock company with limited liability established in the Peoples Republic of China)

We have audited the accompanying consolidated balance sheets of Yanzhou Coal Mining Company Limited and its subsidiaries (the Group) as of
December 31, 2013 and 2012, and the related consolidated income statements, statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2013. These financial statements
are the responsibility of the Groups management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Yanzhou Coal
Mining Company Limited and its subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2013, in conformity with International
Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the
standards of the Public Company Accounting Oversight Board (United States), the Groups internal control over financial reporting as of December 31, 2013, based on the criteria established inInternal ControlIntegrated
Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated April 29, 2014 expressed an unqualified opinion thereon.

/s/ Grant Thornton

Beijing,
Peoples Republic of China

April 29, 2014



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF

YANZHOU COAL MINING COMPANY LIMITED兖州煤业股份有限公司

(A joint stock company with limited liability established in the Peoples Republic of China)

We have audited the internal control over financial reporting of Yanzhou Coal Mining Company Limited and its subsidiaries (the Group) as of
December 31, 2013, based on criteria established inInternal Control  Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Groups management
is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal Control
over Financial Reporting. Our responsibility is to express an opinion on the Groups internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material
effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of the effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

In our opinion, the Group maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2013, based on the criteria established inInternal Control  Integrated Framework (1992) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements of the Group as of and for the year ended
December 31, 2013, and our report dated April 29, 2014 expressed an unqualified opinion on those financial statements.

/s/ Grant
Thornton

Beijing, Peoples Republic of China

April 29, 2014



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS



|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|-------------------------------------------- |  | ----- | -- |  | ----------------------- |  | ----------- | ----------------- |  |  | ----------------- | - |  |  | ----------- | -
|                                             |  |       |    |  | Year ended December 31, | 
|                                             |  | NOTES |    |  | 2013                    |  |             | 2012              |  |  | 2011              |  
|                                             |  |       |    |  | RMB000                 |  |             | RMB000(restated) |  |  | RMB000(restated) |  
|GROSS SALES OF COAL                          |  |       | 7  |  |                         |  | 54,444,843  |                   |  |  | 56,200,600        |   |  |  | 45,181,229  |  
|RAILWAY TRANSPORTATION SERVICE INCOME        |  |       |    |  |                         |  | 457,898     |                   |  |  | 464,068           |   |  |  | 476,852     |  
|GROSS SALES OF ELECTRICITY POWER             |  |       |    |  |                         |  | 332,125     |                   |  |  | 323,646           |   |  |  | 327,969     |  
|GROSS SALES OF METHANOL                      |  |       |    |  |                         |  | 1,155,742   |                   |  |  | 1,117,952         |   |  |  | 1,059,323   |  
|GROSS SALES OF HEAT SUPPLY                   |  |       |    |  |                         |  | 11,218      |                   |  |  | 39,918            |   |  |  | 20,467      |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|TOTAL REVENUE                                |  |       |    |  |                         |  | 56,401,826  |                   |  |  | 58,146,184        |   |  |  | 47,065,840  |  
|                                             |  |       |    | 
|TRANSPORTATION COSTS OF COAL                 |  |       | 7  |  |                         |  | (2,024,196  | )                 |  |  | (2,104,225        | ) |  |  | (1,248,268  | )
|COST OF SALES AND SERVICE PROVIDED           |  |       | 8  |  |                         |  | (42,511,838 | )                 |  |  | (42,148,988       | ) |  |  | (25,986,735 | )
|COST OF ELECTRICITY POWER                    |  |       |    |  |                         |  | (320,515    | )                 |  |  | (330,803          | ) |  |  | (362,472    | )
|COST OF METHANOL                             |  |       |    |  |                         |  | (850,788    | )                 |  |  | (911,203          | ) |  |  | (930,239    | )
|COST OF HEAT SUPPLY                          |  |       |    |  |                         |  | (6,709      | )                 |  |  | (25,130           | ) |  |  | (13,777     | )
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|GROSS PROFIT                                 |  |       |    |  |                         |  | 10,687,780  |                   |  |  | 12,625,835        |   |  |  | 18,524,349  |  
|                                             |  |       |    | 
|SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |  |       | 9  |  |                         |  | (10,380,713 | )                 |  |  | (7,987,636        | ) |  |  | (6,570,203  | )
|SHARE OF PROFIT OF ASSOCIATES                |  |       | 27 |  |                         |  | 233,897     |                   |  |  | 141,986           |   |  |  | 68,939      |  
|SHARE OF LOSS OF JOINT VENTURES              |  |       | 30 |  |                         |  | (376,032    | )                 |  |  | (191,575          | ) |  |  |            |  
|OTHER INCOME                                 |  |       | 10 |  |                         |  | 1,020,577   |                   |  |  | 2,930,445         |   |  |  | 1,075,765   |  
|INTEREST EXPENSES                            |  |       | 11 |  |                         |  | (1,765,777  | )                 |  |  | (1,448,679        | ) |  |  | (839,305    | )
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|(LOSS) PROFIT BEFORE INCOME TAXES            |  |       | 13 |  |                         |  | (580,268    | )                 |  |  | 6,070,376         |   |  |  | 12,259,545  |  
|                                             |  |       |    | 
|INCOME TAXES                                 |  |       | 12 |  |                         |  | 394,815     |                   |  |  | (36,189           | ) |  |  | (3,466,948  | )
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|(LOSS) PROFIT FOR THE YEAR                   |  |       |    |  |                         |  | (185,453    | )                 |  |  | 6,034,187         |   |  |  | 8,792,597   |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|Attributable to:                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|Equity holders of the Company                |  |       |    |  |                         |  | 777,368     |                   |  |  | 6,065,570         |   |  |  | 8,745,092   |  
|Non-controlling interests                    |  |       |    |  |                         |  | (962,821    | )                 |  |  | (31,383           | ) |  |  | 47,505      |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|                                             |  |       |    |  |                         |  | (185,453    | )                 |  |  | 6,034,187         |   |  |  | 8,792,597   |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|EARNINGS PER SHARE, BASIC                    |  |       | 16 |  |                         |  | RMB 0.16    |                   |  |  | RMB 1.23          |   |  |  | RMB 1.78    |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|EARNINGS PER ADS, BASIC                      |  |       | 16 |  |                         |  | RMB 1.58    |                   |  |  | RMB 12.33         |   |  |  | RMB 17.78   |  
|                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|----------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | ---------- | - | ----------------- |  | --------- | ----------------- |  |  | --------- | -
|                                                                                                                                    |  | Year ended December 31, |           
|                                                                                                                                    |  | 2013                    |            |   | 2012              |  |           | 2011              | 
|                                                                                                                                    |  | RMB000                 |            |   | RMB000(restated) |  |           | RMB000(restated) | 
|(Loss) Profit for the year                                                                                                          |  |                         | (185,453   | ) |                   |  | 6,034,187 |                   |  |  | 8,792,597 |  
|                                                                                                                                    |  |                         |           
|Other comprehensive (loss) income (after income tax):                                                                               |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Items that may be reclassified subsequently to profit or loss:                                                                      |  |                         |            |   |                   |  |           |                   |  |  |           |  
|                                                                                                                                    |  |                         |           
|Available-for-sales investments:                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Change in fair value                                                                                                                |  |                         | 5,283      |   |                   |  | (5,923    | )                 |  |  | (20,763   | )
|Deferred taxes                                                                                                                      |  |                         | (1,321     | ) |                   |  | 1,481     |                   |  |  | 5,190     |  
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|                                                                                                                                    |  |                         | 3,962      |   |                   |  | (4,442    | )                 |  |  | (15,573   | )
|                                                                                                                                    |  |                         |           
|Cash flow hedges:                                                                                                                   |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Cash flow hedge amounts recognized in other comprehensive income                                                                    |  |                         | (1,265,664 | ) |                   |  | 110,196   |                   |  |  | (213,459  | )
|Reclassification adjustments for amounts transferred to income statement (included in selling, general and administrative
expenses) |  |                         | (39,729    | ) |                   |  | (26,501   | )                 |  |  | 12,627    |  
|Deferred taxes                                                                                                                      |  |                         | 395,395    |   |                   |  | (28,641   | )                 |  |  | 62,073    |  
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|                                                                                                                                    |  |                         | (909,998   | ) |                   |  | 55,054    |                   |  |  | (138,759  | )
|Share of other comprehensive income of associates                                                                                   |  |                         |           |   |                   |  | 90        |                   |  |  |          |  
|Exchange difference arising on translation of foreign operations                                                                    |  |                         | (3,684,529 | ) |                   |  | 297,721   |                   |  |  | (569,310  | )
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Other comprehensive (loss) income for the year                                                                                      |  |                         | (4,590,565 | ) |                   |  | 348,423   |                   |  |  | (723,642  | )
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Total comprehensive (loss) income for the year                                                                                      |  |                         | (4,776,018 | ) |                   |  | 6,382,610 |                   |  |  | 8,068,955 |  
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Attributable to:                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|Equity holders of the Company                                                                                                       |  |                         | (3,069,475 | ) |                   |  | 6,413,993 |                   |  |  | 8,021,450 |  
|Non-controlling interests                                                                                                           |  |                         | (1,706,543 | ) |                   |  | (31,383   | )                 |  |  | 47,505    |  
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  
|                                                                                                                                    |  |                         | (4,776,018 | ) |                   |  | 6,382,610 |                   |  |  | 8,068,955 |  
|                                                                                                                                    |  |                         |            |   |                   |  |           |                   |  |  |           |  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|---------------------------------------------------------------------------------- |  | ----- | -- |  | --------------- |  | ----------- | ----------------- |  |  | ----------------- |  |  |  | ---------- | 
|                                                                                   |  |       |    |  | At December 31, |  |             | At January 1,     | 
|                                                                                   |  | NOTES |    |  | 2013            |  |             | 2012              |  |  | 2012              | 
|                                                                                   |  |       |    |  | RMB000         |  |             | RMB000(restated) |  |  | RMB000(restated) | 
|ASSETS                                                                             |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|                                                                                   |  |      
|CURRENT ASSETS                                                                     |  |       |    |  |                 |  |             |                  
|Bank balances and cash                                                             |  |       | 17 |  |                 |  | 10,922,637  |                   |  |  | 12,717,358        |  |  |  | 8,145,297  | 
|Term deposits                                                                      |  |       | 17 |  |                 |  | 4,441,210   |                   |  |  | 3,186,957         |  |  |  | 9,543,214  | 
|Restricted cash                                                                    |  |       | 17 |  |                 |  | 111,349     |                   |  |  | 190,090           |  |  |  | 21,076     | 
|Bills and accounts receivable                                                      |  |       | 18 |  |                 |  | 9,019,505   |                   |  |  | 7,459,603         |  |  |  | 7,312,074  | 
|Royalty receivable                                                                 |  |       | 19 |  |                 |  | 105,584     |                   |  |  | 114,798           |  |  |  |           | 
|Inventories                                                                        |  |       | 20 |  |                 |  | 1,589,220   |                   |  |  | 1,565,531         |  |  |  | 1,391,247  | 
|Prepayments and other receivables                                                  |  |       | 21 |  |                 |  | 5,259,576   |                   |  |  | 4,196,999         |  |  |  | 3,624,879  | 
|Prepaid lease payments                                                             |  |       | 22 |  |                 |  | 18,701      |                   |  |  | 18,418            |  |  |  | 18,975     | 
|Prepayment for resources compensation fees                                         |  |       |    |  |                 |  |            |                   |  |  |                  |  |  |  | 3,356      | 
|Derivative financial instruments                                                   |  |       | 36 |  |                 |  | 16,651      |                   |  |  | 90,731            |  |  |  | 104,910    | 
|Tax recoverable                                                                    |  |       |    |  |                 |  | 39,964      |                   |  |  | 293,006           |  |  |  | 4,637      | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL CURRENT ASSETS                                                               |  |       |    |  |                 |  | 31,524,397  |                   |  |  | 29,833,491        |  |  |  | 30,169,665 | 
|                                                                                   |  |      
|NON-CURRENT ASSETS                                                                 |  |       |    |  |                 |  |             |                  
|Intangible assets                                                                  |  |       | 23 |  |                 |  | 38,256,388  |                   |  |  | 33,634,245        |  |  |  | 26,205,619 | 
|Prepaid lease payments                                                             |  |       | 22 |  |                 |  | 676,202     |                   |  |  | 695,675           |  |  |  | 713,425    | 
|Prepayment for resources compensation fees                                         |  |       |    |  |                 |  |            |                   |  |  |                  |  |  |  | 5,309      | 
|Property, plant and equipment                                                      |  |       | 24 |  |                 |  | 41,896,508  |                   |  |  | 39,503,103        |  |  |  | 31,273,824 | 
|Goodwill                                                                           |  |       | 25 |  |                 |  | 2,460,551   |                   |  |  | 2,573,811         |  |  |  | 1,866,037  | 
|Investments in securities                                                          |  |       | 26 |  |                 |  | 211,559     |                   |  |  | 207,076           |  |  |  | 372,800    | 
|Interests in associates                                                            |  |       | 27 |  |                 |  | 2,744,957   |                   |  |  | 2,624,276         |  |  |  | 1,683,897  | 
|Interests in joint ventures                                                        |  |       | 30 |  |                 |  | 488,350     |                   |  |  | 998,627           |  |  |  | 19,453     | 
|Restricted cash                                                                    |  |       | 17 |  |                 |  | 35,102      |                   |  |  |                  |  |  |  | 387,066    | 
|Long term receivables                                                              |  |       | 28 |  |                 |  | 1,906,397   |                   |  |  | 2,001,458         |  |  |  | 300,083    | 
|Royalty receivable                                                                 |  |       | 19 |  |                 |  | 1,028,790   |                   |  |  | 1,234,649         |  |  |  |           | 
|Deposits made on investments                                                       |  |       | 29 |  |                 |  | 121,926     |                   |  |  | 3,253,381         |  |  |  | 2,557,807  | 
|Deferred tax assets                                                                |  |       | 39 |  |                 |  | 6,107,062   |                   |  |  | 5,605,284         |  |  |  | 1,335,165  | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL NON-CURRENT ASSETS                                                           |  |       |    |  |                 |  | 95,933,792  |                   |  |  | 92,331,585        |  |  |  | 66,720,485 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL ASSETS                                                                       |  |       |    |  |                 |  | 127,458,189 |                   |  |  | 122,165,076       |  |  |  | 96,890,150 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|LIABILITIES AND SHAREHOLDERS EQUITY                                               |  |       |    |  |                 |  |             |                   | 
|                                                                                   |  |       |    | 
|CURRENT LIABILITIES                                                                |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|Bills and accounts payable                                                         |  |       | 32 |  |                 |  | 2,716,675   |                   |  |  | 6,811,760         |  |  |  | 2,240,844  | 
|Other payables and accrued expenses                                                |  |       | 33 |  |                 |  | 8,385,134   |                   |  |  | 9,013,797         |  |  |  | 7,344,815  | 
|Provision for land subsidence, restoration, rehabilitation and environmental costs |  |       | 34 |  |                 |  | 3,321,564   |                   |  |  | 3,291,857         |  |  |  | 2,856,229  | 
|Amounts due to Parent Company and its subsidiary companies                         |  |       |    |  |                 |  | 44,737      |                   |  |  | 93,712            |  |  |  | 352,625    | 
|Borrowings - due within one year                                                   |  |       | 35 |  |                 |  | 11,275,056  |                   |  |  | 7,712,592         |  |  |  | 19,588,496 | 
|Long term payable and provision - due within one year                              |  |       | 38 |  |                 |  | 439,000     |                   |  |  | 399,553           |  |  |  | 3,205      | 
|Derivative financial instruments                                                   |  |       | 36 |  |                 |  | 315,111     |                   |  |  | 128,077           |  |  |  | 222,089    | 
|Contingent value rights shares liabilities                                         |  |       | 37 |  |                 |  | 1,408,729   |                   |  |  |                  |  |  |  |           | 
|Tax payable                                                                        |  |       |    |  |                 |  | 909,967     |                   |  |  | 1,171,341         |  |  |  | 2,113,168  | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL CURRENT LIABILITIES                                                          |  |       |    |  |                 |  | 28,815,973  |                   |  |  | 28,622,689        |  |  |  | 34,721,471 | 
|                                                                                   |  |       |    | 
|NON-CURRENT LIABILITIES                                                            |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|Borrowings - due after one year                                                    |  |       | 35 |  |                 |  | 44,099,955  |                   |  |  | 33,283,790        |  |  |  | 14,869,324 | 
|Deferred tax liability                                                             |  |       | 39 |  |                 |  | 8,468,421   |                   |  |  | 7,563,948         |  |  |  | 3,816,873  | 
|Provision for land subsidence, restoration, rehabilitation and environmental costs |  |       | 34 |  |                 |  | 532,144     |                   |  |  | 478,409           |  |  |  | 325,414    | 
|Contingent value rights shares liabilities                                         |  |       | 37 |  |                 |  |            |                   |  |  | 1,432,188         |  |  |  |           | 
|Long term payable and provision - due after one year                               |  |       | 38 |  |                 |  | 1,555,635   |                   |  |  | 2,063,922         |  |  |  | 15,028     | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL NON-CURRENT LIABILITIES                                                      |  |       |    |  |                 |  | 54,656,155  |                   |  |  | 44,822,257        |  |  |  | 19,026,639 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL LIABILITIES                                                                  |  |       |    |  |                 |  | 83,472,128  |                   |  |  | 73,444,946        |  |  |  | 53,748,110 | 
|                                                                                   |  |       |    | 
|CAPITAL AND RESERVES                                                               |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|Share capital                                                                      |  |       | 40 |  |                 |  | 4,918,400   |                   |  |  | 4,918,400         |  |  |  | 4,918,400  | 
|Reserves                                                                           |  |       |    |  |                 |  | 35,460,278  |                   |  |  | 40,611,634        |  |  |  | 37,533,080 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|Equity attributable to equity holders of the Company                               |  |       |    |  |                 |  | 40,378,678  |                   |  |  | 45,530,034        |  |  |  | 42,451,480 | 
|Non-controlling interests                                                          |  |       | 51 |  |                 |  | 3,607,383   |                   |  |  | 3,190,096         |  |  |  | 690,560    | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL EQUITY                                                                       |  |       |    |  |                 |  | 43,986,061  |                   |  |  | 48,720,130        |  |  |  | 43,142,040 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 
|TOTAL LIABILITIES AND EQUITY                                                       |  |       |    |  |                 |  | 127,458,189 |                   |  |  | 122,165,076       |  |  |  | 96,890,150 | 
|                                                                                   |  |       |    |  |                 |  |             |                   |  |  |                   |  |  |  |            | 



F-5



---

##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|----------------------------------------------------------------------------------- |  | ------------ | --------- |  | ------------ |  | --------- | --------------------- |  |  | --------------------------- | - |  | ------------------ | --------- |  | ---------------------------- |  | ---------- | --------------------- |  |  | ---------------- | - |  | ------------------------------------------- | -------- | - | ------------------------ |  | ---------- | ------- |  |  | ---------- | - |  |  | ---------- | - |  |  | ---------- | -
|                                                                                    |  | Sharecapital |           |  | Sharepremium |  |           | Futuredevelopmentfund |  |  | Statutorycommonreserve fund |   |  | Translationreserve |           |  | Investmentrevaluationreserve |  |            | Cash flowhedgereserve |  |  | Retainedearnings |   |  | Attributable toequity
holdersof the Company |          |   | Non-controllinginterests |  |            | Total   | 
|                                                                                    |  | RMB000      |           |  | RMB000      |  |           | RMB000               |  |  | RMB000                     |   |  | RMB000            |           |  | RMB000                      |  |            | RMB000               |  |  | RMB000          |   |  | RMB000                                     |          |   | RMB000                  |  |            | RMB000 | 
|                                                                                    |  | (note 40)    |           |  |              |  |           | (note 40)             |  |  | (note 40)                   |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         | 
|Balance at January 1, 2011                                                          |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 3,660,624                   |   |  |                    | 3,870,420 |  |                              |  | 192,478    |                       |  |  | 87,523           |   |  |                                             | 30,488   |   |                          |  | 21,590,951 |         |  |  | 37,331,886 |   |  |  | 106,565    |   |  |  | 37,438,451 |  
|Profit for the year (restated)                                                      |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | 8,745,092  |         |  |  | 8,745,092  |   |  |  | 47,505     |   |  |  | 8,792,597  |  
|Other comprehensive income :                                                        |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Fair value change of available-for-sale investments                               |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  | (15,573          | ) |  |                                             |         |   |                          |  |           |         |  |  | (15,573    | ) |  |  |           |   |  |  | (15,573    | )
|- Cash flow hedge reserve recognized                                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             | (138,759 | ) |                          |  |           |         |  |  | (138,759   | ) |  |  |           |   |  |  | (138,759   | )
|- Exchange difference arising on translation of foreign operations                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | (569,310   | )                     |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  | (569,310   | ) |  |  |           |   |  |  | (569,310   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total comprehensive income for the year (restated)                                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | (569,310   | )                     |  |  | (15,573          | ) |  |                                             | (138,759 | ) |                          |  | 8,745,092  |         |  |  | 8,021,450  |   |  |  | 47,505     |   |  |  | 8,068,955  |  
|Transactions with owners                                                            |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Appropriations to reserves                                                        |  |              |          |  |              |  |          |                       |  |  | 490,161                     |   |  |                    | 681,340   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (1,171,501 | )       |  |  |           |   |  |  |           |   |  |  |           |  
|- Dividends                                                                         |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (2,901,856 | )       |  |  | (2,901,856 | ) |  |  | (440       | ) |  |  | (2,902,296 | )
|- Acquisition of a subsidiary (note 50)                                             |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  |           |   |  |  | 536,930    |   |  |  | 536,930    |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total transactions with owners                                                      |  |              |          |  |              |  |          |                       |  |  | 490,161                     |   |  |                    | 681,340   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (4,073,357 | )       |  |  | (2,901,856 | ) |  |  | 536,490    |   |  |  | (2,365,366 | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at December 31, 2011 (restated)                                             |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,150,785                   |   |  |                    | 4,551,760 |  |                              |  | (376,832   | )                     |  |  | 71,950           |   |  |                                             | (108,271 | ) |                          |  | 26,262,686 |         |  |  | 42,451,480 |   |  |  | 690,560    |   |  |  | 43,142,040 |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at January 1, 2012                                                          |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,150,785                   |   |  |                    | 4,551,760 |  |                              |  | (376,832   | )                     |  |  | 71,950           |   |  |                                             | (108,271 | ) |                          |  | 26,445,696 |         |  |  | 42,634,490 |   |  |  | 690,560    |   |  |  | 43,325,050 |  
|Effect on changes in accounting policy (note 3)                                     |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (183,010   | )       |  |  | (183,010   | ) |  |  |           |   |  |  | (183,010   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at January 1, 2012 (restated)                                               |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,150,785                   |   |  |                    | 4,551,760 |  |                              |  | (376,832   | )                     |  |  | 71,950           |   |  |                                             | (108,271 | ) |                          |  | 26,262,686 |         |  |  | 42,451,480 |   |  |  | 690,560    |   |  |  | 43,142,040 |  
|Profit for the year (restated)                                                      |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | 6,065,570  |         |  |  | 6,065,570  |   |  |  | (31,383    | ) |  |  | 6,034,187  |  
|Other comprehensive income :                                                        |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Fair value change of available-for-sale investments                               |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  | (4,442           | ) |  |                                             |         |   |                          |  |           |         |  |  | (4,442     | ) |  |  |           |   |  |  | (4,442     | )
|- Cash flow hedge reserve recognized                                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             | 55,054   |   |                          |  |           |         |  |  | 55,054     |   |  |  |           |   |  |  | 55,054     |  
|- Exchange difference arising on translation of foreign operations                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | 297,721    |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  | 297,721    |   |  |  |           |   |  |  | 297,721    |  
|- Share of other comprehensive income of associates                                 |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  | 90               |   |  |                                             |         |   |                          |  |           |         |  |  | 90         |   |  |  |           |   |  |  | 90         |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total comprehensive income for the year (restated)                                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | 297,721    |                       |  |  | (4,352           | ) |  |                                             | 55,054   |   |                          |  | 6,065,570  |         |  |  | 6,413,993  |   |  |  | (31,383    | ) |  |  | 6,382,610  |  
|Transactions with owners                                                            |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Appropriations to reserves                                                        |  |              |          |  |              |  |          |                       |  |  | 645,219                     |   |  |                    | 423,618   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (1,068,837 | )       |  |  |           |   |  |  |           |   |  |  |           |  
|- Dividends                                                                         |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (2,803,488 | )       |  |  | (2,803,488 | ) |  |  | (47,095    | ) |  |  | (2,850,583 | )
|- Contribution from non-controlling interests                                       |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  |           |   |  |  | 49,000     |   |  |  | 49,000     |  
|- Disposal of partial interests in Yancoal Australia                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (430,971   | )       |  |  | (430,971   | ) |  |  | 2,569,101  |   |  |  | 2,138,130  |  
|- Deferred Tax arising from the restructuring of Australian subsidiaries (restated) |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (100,980   | )       |  |  | (100,980   | ) |  |  | (40,087    | ) |  |  | (141,067   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total transactions with owners (restated)                                           |  |              |          |  |              |  |          |                       |  |  | 645,219                     |   |  |                    | 423,618   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (4,404,276 | )       |  |  | (3,335,439 | ) |  |  | 2,530,919  |   |  |  | (804,520   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at December 31, 2012 (restated)                                             |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,796,004                   |   |  |                    | 4,975,378 |  |                              |  | (79,111    | )                     |  |  | 67,598           |   |  |                                             | (53,217  | ) |                          |  | 27,923,980 |         |  |  | 45,530,034 |   |  |  | 3,190,096  |   |  |  | 48,720,130 |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at January 1, 2013                                                          |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,796,004                   |   |  |                    | 4,975,378 |  |                              |  | (79,111    | )                     |  |  | 67,598           |   |  |                                             | (53,217  | ) |                          |  | 28,220,302 |         |  |  | 45,826,356 |   |  |  | 3,264,842  |   |  |  | 49,091,198 |  
|Effect on changes in accounting policy                                              |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (296,322   | )       |  |  | (296,322   | ) |  |  | (74,746    | ) |  |  | (371,068   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at January 1, 2013 (restated)                                               |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 4,796,004                   |   |  |                    | 4,975,378 |  |                              |  | (79,111    | )                     |  |  | 67,598           |   |  |                                             | (53,217  | ) |                          |  | 27,923,980 |         |  |  | 45,530,034 |   |  |  | 3,190,096  |   |  |  | 48,720,130 |  
|Loss for the year                                                                   |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | 777,368    |         |  |  | 777,368    |   |  |  | (962,821   | ) |  |  | (185,453   | )
|Other comprehensive loss:                                                           |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Fair value change of available-for-sale investments                               |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  | 3,962            |   |  |                                             |         |   |                          |  |           |         |  |  | 3,962      |   |  |  |           |   |  |  | 3,962      |  
|- Cash flow hedge reserve recognized                                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             | (697,568 | ) |                          |  |           |         |  |  | (697,568   | ) |  |  | (212,430   | ) |  |  | (909,998   | )
|- Exchange difference arising on translation of foreign operations                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | (3,153,237 | )                     |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  | (3,153,237 | ) |  |  | (531,292   | ) |  |  | (3,684,529 | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total comprehensive loss for the year                                               |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  | (3,153,237 | )                     |  |  | 3,962            |   |  |                                             | (697,568 | ) |                          |  | 777,368    |         |  |  | (3,069,475 | ) |  |  | (1,706,543 | ) |  |  | (4,776,018 | )
|Transactions with owners                                                            |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|- Acquisition of Hao Sheng (Note 43)                                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  |           |   |  |  | 2,401,737  |   |  |  | 2,401,737  |  
|- Increase of the registered capital of Hao Sheng                                   |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  |           |   |  |  | 75,540     |   |  |  | 75,540     |  
|- Stamp duty arising from the restructuring of Australian subsidiaries              |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (71,140    | )       |  |  | (71,140    | ) |  |  |           |   |  |  | (71,140    | )
|- Set up of Rizhao                                                                  |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  |           |         |  |  |           |   |  |  | 147,000    |   |  |  | 147,000    |  
|- Appropriations to and utilisation of reserves                                     |  |              |          |  |              |  |          |                       |  |  | (820,272                    | ) |  |                    | 535,945   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | 284,327    |         |  |  |           |   |  |  |           |   |  |  |           |  
|- Dividends                                                                         |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (1,770,624 | )       |  |  | (1,770,624 | ) |  |  | (60,277    | ) |  |  | (1,830,901 | )
|- Acquisition of non-controlling interests (Note 50)                                |  |              |          |  |              |  |          |                       |  |  |                            |   |  |                    |          |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (240,117   | )       |  |  | (240,117   | ) |  |  | (440,170   | ) |  |  | (680,287   | )
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Total transactions with owners                                                      |  |              |          |  |              |  |          |                       |  |  | (820,272                    | ) |  |                    | 535,945   |  |                              |  |           |                       |  |  |                 |   |  |                                             |         |   |                          |  | (1,797,554 | )       |  |  | (2,081,881 | ) |  |  | 2,123,830  |   |  |  | 41,949     |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  
|Balance at December 31, 2013                                                        |  |              | 4,918,400 |  |              |  | 2,981,002 |                       |  |  | 3,975,732                   |   |  |                    | 5,511,323 |  |                              |  | (3,232,348 | )                     |  |  | 71,560           |   |  |                                             | (750,785 | ) |                          |  | 26,903,794 |         |  |  | 40,378,678 |   |  |  | 3,607,383  |   |  |  | 43,986,061 |  
|                                                                                    |  |              |           |  |              |  |           |                       |  |  |                             |   |  |                    |           |  |                              |  |            |                       |  |  |                  |   |  |                                             |          |   |                          |  |            |         |  |  |            |   |  |  |            |   |  |  |            |  



F-6



---

##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS



|                                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|------------------------------------------------------------------------------------ |  | ----- |  | ----------------------- | ---------- | - | ----------------- |  | ---------- | ----------------- |  |  | ---------- | -
|                                                                                     |  |       |  | Year ended December 31, |           
|                                                                                     |  | NOTES |  | 2013                    |            |   | 2012              |  |            | 2011              | 
|                                                                                     |  |       |  | RMB000                 |            |   | RMB000(restated) |  |            | RMB000(restated) | 
|OPERATING ACTIVITIES                                                                 |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|                                                                                     |  |       |  |                        
|(Loss) Profit before income taxes                                                    |  |       |  |                         | (580,268   | ) |                   |  | 6,070,376  |                   |  |  | 12,259,545 |  
|Adjustments for:                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|Interest expenses                                                                    |  |       |  |                         | 1,765,777  |   |                   |  | 1,448,679  |                   |  |  | 839,305    |  
|Interest income                                                                      |  |       |  |                         | (489,348   | ) |                   |  | (722,336   | )                 |  |  | (357,708   | )
|Dividend income                                                                      |  |       |  |                         | (71,395    | ) |                   |  | (3,702     | )                 |  |  | (2,433     | )
|Net unrealized foreign exchange losses (gain)                                        |  |       |  |                         | 581,145    |   |                   |  | (1,359,747 | )                 |  |  | 244,655    |  
|Depreciation of property, plant and equipment                                        |  |       |  |                         | 3,124,953  |   |                   |  | 2,819,404  |                   |  |  | 2,266,017  |  
|Release of prepaid lease payments                                                    |  |       |  |                         | 18,728     |   |                   |  | 18,363     |                   |  |  | 19,018     |  
|Amortization of prepayment for resources compensation fees                           |  |       |  |                         |           |   |                   |  |           |                   |  |  | 3,355      |  
|Bargain purchase                                                                     |  |       |  |                         |           |   |                   |  | (1,269,269 | )                 |  |  |           |  
|Amortization of intangible assets                                                    |  |       |  |                         | 1,325,078  |   |                   |  | 1,177,595  |                   |  |  | 720,008    |  
|(Reversal) provision of impairment loss on accounts receivable and other receivables |  |       |  |                         | (742       | ) |                   |  | 6,452      |                   |  |  | (101       | )
|Impairment loss on inventories                                                       |  |       |  |                         | 58,274     |   |                   |  | 140,883    |                   |  |  |           |  
|Impairment loss on property, plant and equipment                                     |  |       |  |                         |           |   |                   |  | 226,925    |                   |  |  | 281,994    |  
|Impairment loss on intangibles assets                                                |  |       |  |                         | 2,052,238  |   |                   |  | 417,214    |                   |  |  |           |  
|Impairment loss on goodwill                                                          |  |       |  |                         |           |   |                   |  | 17,625     |                   |  |  |           |  
|Share of loss of joint ventures                                                      |  |       |  |                         | 376,032    |   |                   |  | 191,575    |                   |  |  |           |  
|Share of profit of associates                                                        |  |       |  |                         | (233,897   | ) |                   |  | (141,986   | )                 |  |  | (68,939    | )
|Loss on fair value change of contingent value rights shares liabilities              |  |       |  |                         | 241,223    |   |                   |  | 79,423     |                   |  |  |           |  
|(Gain) Loss on disposal of property, plant and equipment                             |  |       |  |                         | (14,973    | ) |                   |  | (9,862     | )                 |  |  | 108,627    |  
|Loss on disposal of intangible assets                                                |  |       |  |                         | 4,400      |   |                   |  |           |                   |  |  |           |  
|                                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|Operating cash flows before movements in working capital                             |  |       |  |                         | 8,157,225  |   |                   |  | 9,107,612  |                   |  |  | 16,313,343 |  
|                                                                                     |  |       |  |                        
|(Increase) decrease in bills and accounts receivable                                 |  |       |  |                         | (1,722,004 | ) |                   |  | (93,403    | )                 |  |  | 2,800,237  |  
|(Increase) decrease in inventories                                                   |  |       |  |                         | (264,844   | ) |                   |  | (58,993    | )                 |  |  | 403,324    |  
|Movement in land subsidence, restoration, rehabilitation and environmental cost      |  |       |  |                         | 170,486    |   |                   |  | 484,739    |                   |  |  | 556,706    |  
|Increase in prepayments and other current assets                                     |  |       |  |                         | (1,377,975 | ) |                   |  | (186,137   | )                 |  |  | (730,741   | )
|(Decrease) increase in bills and accounts payable                                    |  |       |  |                         | (3,187,931 | ) |                   |  | 246,081    |                   |  |  | 537,775    |  
|(Decrease) increase in other payables and accrued expenses                           |  |       |  |                         | (1,223,267 | ) |                   |  | 412,693    |                   |  |  | 531,298    |  
|Decrease in long-term payable and provision                                          |  |       |  |                         | (35,670    | ) |                   |  | (93,090    | )                 |  |  | (16,327    | )
|                                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|Cash generated from operations                                                       |  |       |  |                         | 516,020    |   |                   |  | 9,819,502  |                   |  |  | 20,395,615 |  
|                                                                                     |  |       |  |                        
|Income taxes paid                                                                    |  |       |  |                         | (1,755,881 | ) |                   |  | (2,684,720 | )                 |  |  | (2,155,602 | )
|Interest paid                                                                        |  |       |  |                         | (1,624,380 | ) |                   |  | (1,296,338 | )                 |  |  | (608,601   | )
|Interest received                                                                    |  |       |  |                         | 478,572    |   |                   |  | 645,840    |                   |  |  | 343,431    |  
|Dividend received                                                                    |  |       |  |                         | 71,395     |   |                   |  | 3,702      |                   |  |  | 2,433      |  
|Dividend received from associates                                                    |  |       |  |                         | 113,216    |   |                   |  | 15,624     |                   |  |  |           |  
|                                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  
|NET CASH (USED IN) FROM OPERATING ACTIVITIES                                         |  |       |  |                         | (2,201,058 | ) |                   |  | 6,503,610  |                   |  |  | 17,977,276 |  
|                                                                                     |  |       |  |                         |            |   |                   |  |            |                   |  |  |            |  



F-7



---

##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWSContinued



|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|-------------------------------------------------------------------------------- |  | ----- | -- |  | ----------------------- |  | ----------- | ----------------- |  |  | ----------------- | - |  |  | ----------- | -
|                                                                                 |  |       |    |  | Year ended December 31, | 
|                                                                                 |  | NOTES |    |  | 2013                    |  |             | 2012              |  |  | 2011              |  
|                                                                                 |  |       |    |  | RMB000                 |  |             | RMB000(restated) |  |  | RMB000(restated) |  
|INVESTING ACTIVITIES                                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|                                                                                 |  |       |    | 
|(Increase) decrease in term deposits                                             |  |       |    |  |                         |  | (1,286,055  | )                 |  |  | 6,356,257         |   |  |  | (6,975,492  | )
|Decrease in restricted cash                                                      |  |       |    |  |                         |  | 43,748      |                   |  |  | 223,525           |   |  |  | 1,002,057   |  
|Purchase of property, plant and equipment                                        |  |       |    |  |                         |  | (10,221,406 | )                 |  |  | (6,230,426        | ) |  |  | (8,619,515  | )
|Increase in long term receivables                                                |  |       |    |  |                         |  | (245,779    | )                 |  |  | (349,217          | ) |  |  | (300,083    | )
|Increase in deposit made on investments                                          |  |       |    |  |                         |  | (4,000      | )                 |  |  | (695,574          | ) |  |  | (394,128    | )
|Proceeds on disposal of property, plant and equipment                            |  |       |    |  |                         |  | 80,236      |                   |  |  | 226,876           |   |  |  | 57,956      |  
|Acquisition of Beisu and Yangcun                                                 |  |       | 44 |  |                         |  |            |                   |  |  | (816,011          | ) |  |  |            |  
|Acquisition of Gloucester                                                        |  |       | 45 |  |                         |  |            |                   |  |  | 237,315           |   |  |  |            |  
|Investments in securities                                                        |  |       |    |  |                         |  | (202        | )                 |  |  |                  |   |  |  | (169,121    | )
|Investments in associates                                                        |  |       |    |  |                         |  |            |                   |  |  | (810,000          | ) |  |  | (540,000    | )
|Acquisition of An Yuan Coal Mine                                                 |  |       | 46 |  |                         |  |            |                   |  |  |                  |   |  |  | (355,000    | )
|Acquisition of Hao Sheng                                                         |  |       | 43 |  |                         |  | (802,089    | )                 |  |  |                  |   |  |  |            |  
|Acquisition of additional interests in joint operations                          |  |       | 47 |  |                         |  |            |                   |  |  |                  |   |  |  | (1,494,767  | )
|Acquisition of Syntech                                                           |  |       | 48 |  |                         |  |            |                   |  |  |                  |   |  |  | (1,316,174  | )
|Acquisition of Premier coal and Wesfarmers Char                                  |  |       | 49 |  |                         |  |            |                   |  |  |                  |   |  |  | (2,057,276  | )
|Acquisition of Xintai                                                            |  |       | 50 |  |                         |  | (680,287    | )                 |  |  |                  |   |  |  | (2,751,557  | )
|Acquisition of potash mineral exploration permits                                |  |       |    |  |                         |  |            |                   |  |  |                  |   |  |  | (1,645,227  | )
|Purchase of intangible assets                                                    |  |       |    |  |                         |  | (388,536    | )                 |  |  | (1,330,117        | ) |  |  | (52,648     | )
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|NET CASH USED IN INVESTING ACTIVITIES                                            |  |       |    |  |                         |  | (13,504,370 | )                 |  |  | (3,187,372        | ) |  |  | (25,610,975 | )
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|FINANCING ACTIVITIES                                                             |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|                                                                                 |  |       |    | 
|Dividends paid                                                                   |  |       |    |  |                         |  | (1,770,624  | )                 |  |  | (2,803,488        | ) |  |  | (2,901,856  | )
|Proceeds from bank borrowings                                                    |  |       |    |  |                         |  | 21,103,061  |                   |  |  | 12,281,525        |   |  |  | 16,712,320  |  
|Repayment of bank borrowings                                                     |  |       |    |  |                         |  | (10,000,905 | )                 |  |  | (17,338,107       | ) |  |  | (4,367,079  | )
|Repayment of other borrowings                                                    |  |       |    |  |                         |  | (2,057,376  | )                 |  |  | (2,225,731        | ) |  |  |            |  
|Expenses arising from acquisition of Gloucester                                  |  |       |    |  |                         |  |            |                   |  |  | (33,867           | ) |  |  |            |  
|Proceeds from issuance of guaranteed notes                                       |  |       |    |  |                         |  | 5,997,500   |                   |  |  | 11,262,900        |   |  |  |            |  
|Dividends paid to non-controlling interests of a subsidiary                      |  |       |    |  |                         |  | (60,277     | )                 |  |  | (47,095           | ) |  |  | (2,408      | )
|Contribution from non-controlling interests                                      |  |       |    |  |                         |  | 75,540      |                   |  |  | 49,000            |   |  |  |            |  
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|NET CASH FROM FINANCING ACTIVITIES                                               |  |       |    |  |                         |  | 13,286,919  |                   |  |  | 1,145,137         |   |  |  | 9,440,977   |  
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                             |  |       |    |  |                         |  | (2,418,509  | )                 |  |  | 4,461,375         |   |  |  | 1,807,278   |  
|CASH AND CASH EQUIVALENTS, AT JANUARY 1                                          |  |       |    |  |                         |  | 12,717,358  |                   |  |  | 8,145,297         |   |  |  | 6,771,314   |  
|EFFECT OF FOREIGN EXCHANGE RATE CHANGES                                          |  |       |    |  |                         |  | 623,788     |                   |  |  | 110,686           |   |  |  | (433,295    | )
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  
|CASH AND CASH EQUIVALENTS, AT DECEMBER 31, REPRESENTED BY BANK BALANCES AND CASH |  |       |    |  |                         |  | 10,922,637  |                   |  |  | 12,717,358        |   |  |  | 8,145,297   |  
|                                                                                 |  |       |    |  |                         |  |             |                   |  |  |                   |   |  |  |             |  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL

Organization and principal activities

Yanzhou Coal Mining Company Limited (the Company, together with its subsidiaries, the Group) is established as
a joint stock company with limited liability in the Peoples Republic of China (the PRC). 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 Stock Exchange (SSE), its H shares are listed on The Stock Exchange of Hong Kong (the SEHK), and its American Depositary Shares (ADS, one ADS represents 10 H shares) are listed on the New
York Stock Exchange, Inc. The address of the registered office and principal place of business of the Company is 298 Fushan South Road, Zoucheng, Shandong Province, PRC.

The Company operates eight coal mines, namely the Xinglongzhuang coal mine, Baodian coal mine, Nantun coal mine, Dongtan coal mine, Jining II coal mine (Jining II), Jining III coal mine
(Jining III), Beisu coal mine (Beisu) and Yangcun coal mine (Yangcun) as well as a regional rail network that links the eight mines with the national rail network. The Companys parent and ultimate holding
company is Yankuang Group Corporation Limited (the Parent Company), a state-owned enterprise in the PRC.

The principal activities
of the Companys subsidiaries, associates, joint ventures and joint operations are set out in notes 60, 27, 30 and 31 respectively.

As
at December 31, 2013, the Group had net current assets of RMB2,708,424,000 (2012: RMB1,210,802,000 (restated)) and total assets less current liabilities of RMB98,642,216,000 (2012: RMB93,542,387,000 (restated)).

Acquisitions and establishment of major subsidiaries

In 2006, the Company acquired 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. In 2007, the Company further acquired the remaining 2% equity interest in Shanxi Neng Hua from a subsidiary of the Parent Company at cash consideration of RMB14,965,000. 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.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

1. GENERALContinued

Acquisitions and establishment of major
subsidiariescontinued



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 Chemicals Company Limited (Shanxi Tianhao). In 2010, Shanxi Neng Hua acquired approximately 0.04% equity interest of
Shanxi Tianhao at cash consideration of RMB14,000. 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 production in 2008.

In 2004, the Company acquired 95.67% equity interest in Yanmei Heze
Company Limited (Heze) from the Parent Company at cash consideration of RMB584,008,000. The principal activities of Heze are to exploit and sale of coal in Juye coal field. The equity interests held by the Company increased to 96.67%
after the increase of the registered capital of Heze in 2007. The equity interests held by the Company increased to 98.33% after the increase of the registered capital of RMB1.5 billion in 2010.

The Company originally held 97% equity interest in Yanzhou Coal Yulin Power Chemical Co., Ltd. (Yulin). The Company acquired the remaining 3%
equity interest and made further investment of RMB600,000,000 in Yulin in 2008.

In February 2009, the Company acquired a 74% equity interest
in Shandong Hua Ju Energy Company Limited (Hua Ju Energy) from the Parent Company at a consideration of RMB593,243,000. Hua Ju Energy is a joint stock limited company established in the PRC with the principal business of 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 agreed to acquire
21.14% equity interest in Hua Ju Energy at a consideration of RMB173,007,000.

In 2009, the Company entered into a binding scheme
implementation agreement with Felix Resources Limited (Felix), a corporation incorporated in Australia with shares listed on the Australian Securities Exchange (ASX), to acquire all the shares of Felix in cash of
approximately AUD3,333 million. 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. This acquisition was
completed in 2009. In 2011, Felix Resources Limited was renamed as Yancoal Resources Limited (Yancoal Resources).

In 2009, the
Company invested RMB500 million to set up a wholly-owned subsidiary located in Inner Mongolia, Yanzhou Coal Ordos Neng Hua Company Limited (Ordos). Ordos is a limited liability company incorporated in the PRC with the objectives of
production and sale of methanol and other chemical products. In 2011, the Company invested additional equity in the registered capital of Ordos of RMB2.6 billion. The Company also acquired Yiginhuoluo Qi Nalin Tao Hai Town An Yuan Coal Mine
(An Yuan Coal Mine) at a consideration of RMB1,435,000,000.

In 2010, the Company acquired 100% equity interest of Inner Mongolia
Yize Mining Investment Co., Ltd (Yize) and other two companies at a consideration of RMB190,095,000. The main purpose of this acquisition is to facilitate the business of methanol and other chemical products in Inner Mongolia Autonomous
Region.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

1. GENERALContinued

Acquisitions and establishment of major
subsidiariescontinued



In 2011, Ordos acquired 80% equity interest of Inner Mongolia Xintai Coal Mining Company Limited
(Xintai) at a consideration of RMB2,801,557,000 from an independent third party. Xintai owns and operates Wenyu Coal Mine in Inner Mongolia. The principal activities of Xintai are coal production and coal sales. On September 30,
2013, Ordos acquired remaining 20% of non-controlling interests of Xintai with consideration of RMB680,287,000.

In 2011, the Company acquired
100% equity interests in Syntech Holdings Pty Ltd and Syntech Holdings II Pty Ltd (collectively Syntech) at a cash consideration of AUD208,480,000. The principal activities of Syntech include exploration, production, sorting and
processing of coal. The acquisition was completed on August 1, 2012.

The Company entered into a sales and purchases agreement on
September 27, 2011 to acquire 100% equity interests in both Wesfarmers Premier Coal Limited (Premier Coal) and Wesfarmers Char Pty Ltd (Wesfarmers Char) at a consideration of AUD313,533,000. The acquisition was completed
on December 30, 2011. Premier Coal is mainly engaged in the exploration, production and processing of coal. Wesfarmers Char is mainly engaged in the research and development of the technology and procedures in relation to processing coal char
from low rank coals.

In 2011, the Company invested USD2.8 million to set up a wholly-owned subsidiary, Yancoal International (Holding) Co.,
Limited (Yancoal International). Yancoal International was established in Hong Kong to act as a platform for overseas assets and business management. Yancoal International has four subsidiaries, namely Yancoal International Trading Co.,
Limited, Yancoal International Technology Development Co., Limited, Yancoal International Resources Development Co., Limited and Yancoal Luxembourg Energy Holding Co., Limited (Yancoal Luxembourg). Yancoal Luxembourg established a
wholly-owned subsidiary, Yancoal Canada Resources Co., Ltd (Yancoal Canada) with USD290 million as investment. The Company acquired, at a total consideration of USD260 million, 19 potash mineral exploration permits in the Province of
Saskatchewan, Canada through Yancoal Canada. The permit transfer registrations were completed on September 30, 2011.

On
December 22, 2011 and March 5, 2012, the Company, Yancoal Australia Limited (Yancoal Australia) and Gloucester Coal Limited (Gloucester), a corporation incorporated in Australia whose shares are listed on the ASX,
entered into the merger proposal deed in respect of a proposal for the merger of Yancoal Australia and Gloucester. Yancoal Australia acquired the entire issued share capital of Gloucester at a consideration of a combination of 218,727,665 ordinary
shares of Yancoal Australia and 87,645,184 contingent value rights shares (CVR shares). Following the completion of the merger, Yancoal Australia is separately listed on the ASX, replacing the listing position of Gloucester. The merger
was completed on June 27, 2012. The ordinary shares and CVR shares of Yancoal Australia was listed on the ASX on June 28, 2012. On June 22, 2012, according to the merger agreement, the equity interest in Syntech and Premier Coal held
by Yancoal Australia has been transferred to Yancoal International.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

1. GENERALContinued

Acquisitions and establishment of major
subsidiariescontinued



On April 23, 2012, the Company entered into an assets transfer agreement with the Parent Company
and its subsidiary to purchase the target assets from the Parent Company and its subsidiary at a consideration of RMB824,142,000 to acquire all the assets and liabilities of Beisu and Yangcun and their equity investments in Zoucheng Yankuang
Beisheng Industry & Trading Co., Ltd (Beisheng Industry and Trade), Shandong Shengyang Wood Co., Ltd (Shengyang Wood) and Jining Jiemei New Wall Materials Co., Ltd (Jiemei Wall Materials). Beisu and
Yangcun mainly engaged in the production and exploration of PCI coal and thermal coal. The acquisition was completed on May 31, 2012.

In
2012, the Company entered into an agreement for investment in Shandong Coal Trading Centre Co., Limited (Trading Centre) with two third parties. The Company contribute RMB51,000,000 which represents 51% of the equity interest in Trading
Centre. The principal activities of Trading Centre is to provide coal trading and relevant advisory services. Trading Centre has not yet commenced any business.

In 2010, the Company entered into a co-operative agreement with three independent third parties to acquire 51% equity interest of Inner Mongolia Hao Sheng Coal Mining Limited (Hao Sheng) and
obtained the mining rights of the Shilawusu Coal Field (the mining right) in the name of Hao Sheng. From 2011 to 2013, the Company entered into agreements with contract parties to further acquire equity interest in Hao Sheng and increase
Hao Shengs registered capital. Upon completion of these agreements during the period, the Company owns 74.82% equity interest in Hao Sheng with total consideration of RMB7,136,536,000. During the year, the Company made additional contribution
of RMB224,460,000 to registered capital in proportion to its equity interest. As at December 31, 2013, Hao Sheng has not yet commenced any business.

In 2012, the Company entered into a cooperation agreement with two independent third parties to set up a company, Shandong Yanmei Rizhao Port Coal Storage and Blending Co., Ltd. (Rizhao), to
act as a coal blending, storage and distribution base in Rizhao Port. Upon completion of registration procedures during the year, the Company contributed RMB153, 000,000, which represents 51% equity interest of Rizhao.

2. BASIS OF PREPARATION

The
accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The consolidated financial statements were
approved and authorized for issue by the Board of Directors on April 29, 2014.

The consolidated financial statements are presented in
Renminbi (RMB), which is also the functional currency of the Company.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

In the current year, the Group had applied, for the first time, the following revised standards (new IFRSs) applicable to the Group 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 financial year beginning on
January 1, 2013.



|                                          |  |                                                                                                                         
|----------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------
|IFRSs (Amendments)                        |  | Annual Improvements to IFRSs 2009-2011 Cycle                                                                            
|IFRS 7 (Amendments)                       |  | Disclosures  Offsetting Financial Assets and Financial Liabilities                                                     
|IFRS 10                                   |  | Consolidated Financial Statements                                                                                       
|IFRS 11                                   |  | Joint Arrangements                                                                                                      
|IFRS 12                                   |  | Disclosure of Interests in Other Entities                                                                               
|IFRS 10, IFRS 11 and IFRS 12 (Amendments) |  | Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
|IFRS 13                                   |  | Fair Value Measurement                                                                                                  
|IAS 1 (Amendments)                        |  | Presentation of Items of Other Comprehensive Income                                                                     
|IAS 19 (Revised)                          |  | Employee Benefits                                                                                                       
|IAS 28 (Revised)                          |  | Investments in Associates and Joint Ventures                                                                            
|IFRIC 20                                  |  | Stripping Costs in the Production Phase of a Surface Mine                                                               

Except as described above, the accounting policies adopted for the current year are consistent with those adopted for the
Groups financial statements for the year ended December 31, 2012.

Except as described below, the application of the above new or
revised IFRSs for the current year had no material impact on the amounts reported and/or disclosures set out in the consolidated financial statements for the year.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



| |  |  | IFRS 11 Joint Arrangements
| | - |  | --------------------------

IFRS 11 introduces new accounting requirements for joint arrangements, replacing IAS 31-Interests in Joint Ventures. The option to apply the proportional consolidation method when accounting for jointly
controlled entities is removed. Additionally, IFRS 11 eliminates jointly controlled assets to now only differentiate between joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control
have rights to the assets and obligations for the liabilities. A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets.

After the review and assessment made by the directors of the Company, the directors concluded that the Groups investment which was classified as jointly controlled entities under IAS 31 should be
classified as joint ventures under IFRS 11 and will continue to apply the equity method.



| |  |  | IFRS 13 Fair Value Measurement
| | - |  | ------------------------------

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or
disclosures about those measurements), except for certain exemptions. IFRS 13 requires the disclosures of fair values through a fair value hierarchy. The hierarchy categorizes the inputs used in valuation techniques into three levels.
The hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure fair value are categorized into different
levels of the fair value hierarchy, the fair value measurement is categorized in its entirety in the level of the lowest level input that is significant to the entire measurement.

For disclosure relating the fair value, please refer to note 42.



| |  |  | IAS 1 (Amendments) Presentation of Items of Other Comprehensive Income
| | - |  | ----------------------------------------------------------------------

The amendments to IAS 1 require additional disclosures to be made in the other comprehensive section such that items of other
comprehensive income are grouped into two categories: (a) items that will not be reclassified subsequently to profit or loss; and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. Income
tax on items of other comprehensive income is required to be allocated on the same basisthe amendments do not change the existing option to present items of other comprehensive income either before tax or net of tax. The amendments have been
applied retrospectively, and hence the presentation of items of other comprehensive income has been modified to reflect the changes.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



| |  |  | IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
| | - |  | ------------------------------------------------------------------

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine applies to waste removal costs incurred during the production phase of
a surface mine (production stripping costs). Under the Interpretation, the costs from this waste removal activity (stripping) which provide improved access to ore are recognized as a non-current asset (stripping
activity asset) when certain criteria are met, whereas the costs of stripping activities where the benefit is realised in the form of inventory produced are accounted for in accordance with IAS 2 Inventories. The stripping activity asset is
accounted for as an addition to, or as an enhancement of, an existing asset and classified as tangible or intangible according to the nature of the existing asset of which it forms part. When the costs of the stripping activity asset and the
inventory produced are not separately identifiable, production stripping costs are allocated between the inventory produced and the stripping activity asset by using an allocation basis that is based on a relevant production measure.

Prior to the effective of IFRIC 20, stripping costs of the Group and its joint ventures which comprises the accumulation of expenses
incurred to enable access to the coal seams, and includes direct removal costs, machinery and plant running costs are deferred then charged to the consolidated income statement in subsequent periods on the basis of run-of-mine (ROM) coal
tonnes mined. This is calculated by multiplying the ROM coal tonnes mined during the year by the weighted average cost to remove a bank cubic metre (BCM) of waste by the stripping ratio (ratio of waste removed in BCMs to ROM coal tonnes
mined). The stripping ratio of the Companys Australian subsidiaries is based on the JORC reserves of each mine.

The
requirements in IFRIC 20 differs from the Group and its joint ventures previous policies in that only waste stripping costs which provide improved access to ore can be capitalized when certain criteria are met, and the capitalization and
amortization of waste stripping costs is undertaken at the level of individual deposits or components thereof rather than on a whole-for-mine basis. In addition, specific transitional rules are provided to deal with any opening deferred stripping
balances recognised under the previous accounting policies.

As a result of the adoption of the IFRIC 20, any previously
recognised asset that resulted from stripping activity undertaken during the production phase (predecessor stripping asset) is reclassified as part of the existing asset to which the stripping activity related, to the extent that there remains an
identifiable component of the orebody with which the predecessor stripping asset can be associated. Such balances are then amortised over the remaining expected useful life of the identified component of the orebody to which each predecessor
stripping asset balance relates. If there is no identifiable component of the orebody to which the predecessor asset relates, it has been written off through opening retained earnings at the beginning of the earliest period presented. IFRIC 20 has
been applied by Group and its joint ventures prospectively to production stripping costs incurred on or after the beginning of the earliest period presented.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



| |  |  | IFRIC 20 Stripping Costs in the Production Phase of a Surface Minecontinued
| | - |  | ----------------------------------------------------------------------------

The effects of the application of IFRIC 20 on the consolidated balance sheet at January 1, 2012 and December 31, 2012 are as follows:



|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|------------------------------------------- |  | -------------------- | -------- | - | -------------------------- |  | --------- | ----------------------- |  |  | ---------- | - |  | ------------------------ | ----------- | - |  |  | ---------- | -
|                                            |  | Assets               |          |   | Liabilities                |  |           | Equity                  | 
|                                            |  | Overburden inadvance |          |   | Interests injoint ventures |  |           | Deferred taxliabilities |  |  | Reserves   |   |  | Non-controllinginterests |            
|                                            |  | RMB000              |          |   | RMB000                    |  |           | RMB000                 |  |  | RMB000    |   |  | RMB000                  |            
|At January 1, 2012 as previously reported   |  |                      | 261,441  |   |                            |  | 19,453    |                         |  |  | (3,895,304 | ) |  |                          | (37,716,090 | ) |  |  | (690,560   | )
|Adjustment of IFRIC 20                      |  |                      | (261,441 | ) |                            |  |          |                         |  |  | 78,431     |   |  |                          | 183,010     |   |  |  |           |  
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|At January 1, 2012 as restated              |  |                      |         |   |                            |  | 19,453    |                         |  |  | (3,816,873 | ) |  |                          | (37,533,080 | ) |  |  | (690,560   | )
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|At December 31, 2012 as previously reported |  |                      | 448,889  |   |                            |  | 1,086,985 |                         |  |  | (7,730,127 | ) |  |                          | (40,907,956 | ) |  |  | (3,264,842 | )
|Adjustment of IFRIC 20                      |  |                      | (448,889 | ) |                            |  | (88,358   | )                       |  |  | 166,179    |   |  |                          | 296,322     |   |  |  | 74,746     |  
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  
|At December 31, 2012 as restated            |  |                      |         |   |                            |  | 998,627   |                         |  |  | (7,563,948 | ) |  |                          | (40,611,634 | ) |  |  | (3,190,096 | )
|                                            |  |                      |          |   |                            |  |           |                         |  |  |            |   |  |                          |             |   |  |  |            |  

IFRIC 20 had no material impact on the consolidated balance sheet as at January 1, 2011.

The effects of IFRIC 20 on the consolidated income statement for the year ended December 31, 2012 and for the year ended December 31, 2011 are
as follows:



|                                     |  |                                             |         |  |                                         |  |        |                         |  |  |                               |   |  |                                     |         |  |                                   |  |      |  |  |  |      | 
|------------------------------------ |  | ------------------------------------------- | ------- |  | --------------------------------------- |  | ------ | ----------------------- |  |  | ----------------------------- | - |  | ----------------------------------- | ------- |  | --------------------------------- |  | ---- |  |  |  | ---- | 
|                                     |  | Increase incost of salesand serviceprovided |         |  | Increase inshare ofloss
ofjointventures |  |        | Decreasein 
incometaxes |  |  | Decrease inprofit for theyear |   |  | Decrease inearnings pershare, basic |         |  | Decrease inearnings perADS, basic | 
|                                     |  | RMB000                                     |         |  | RMB000                                 |  |        | RMB000                 |  |  | RMB000                       |   |  | RMB000                             |         |  | RMB000                           | 
|For the year ended December 31, 2011 |  |                                             | 261,441 |  |                                         |  |       |                         |  |  | (78,431                       | ) |  |                                     | 183,010 |  |                                   |  | 0.04 |  |  |  | 0.37 | 
|For the year ended December 31, 2012 |  |                                             | 187,448 |  |                                         |  | 88,358 |                         |  |  | (87,748                       | ) |  |                                     | 188,058 |  |                                   |  | 0.03 |  |  |  | 0.31 | 
|                                     |  |                                             |         |  |                                         |  |        |                         |  |  |                               |   |  |                                     |         |  |                                   |  |      |  |  |  |      | 



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



The Group has not early applied the following new and revised standards, amendments or interpretations
that have been issued but are not yet effective.



|                                         |  |                                                               
|---------------------------------------- |  | --------------------------------------------------------------
|Amendments to IFRSs                      |  | Annual Improvements to IFRSs 2010-2012
Cycle2                 
|Amendments to IFRSs                      |  | Annual Improvements to IFRSs 2011-2013
Cycle2                 
|IFRS 9                                   |  | Financial Instruments3                                        
|Amendments to IFRS 9 and IFRS 7          |  | Mandatory Effective Date of IFRS 9 and Transition
Disclosures3
|Amendments to IFRS 10 IFRS 12 and IAS 27 |  | Investment Entities1                                          
|Amendments to IAS 19                     |  | Defined Benefit Plans: Employee
Contributions2                
|Amendments to IAS 32                     |  | Offsetting Financial Assets and Financial
Liabilities1        
|Amendments to IAS 36                     |  | Recoverable Amount Disclosures for Non-Financial
Assets1      
|Amendments to IAS 39                     |  | Novation of Derivatives and Continuation of Hedge
Accounting1 
|IFRIC  Int 21                           |  | Levies1                                                       



|1 | Effective for annual periods beginning on or after January 1, 2014, with earlier application permitted.
|- | -------------------------------------------------------------------------------------------------------

|2 | Effective for annual periods beginning on or after July 1, 2014, except as disclosed below. Early application is permitted.
|- | ---------------------------------------------------------------------------------------------------------------------------

|3 | Available for applicationthe mandatory effective date will be determined when the outstanding phases of IFRS 9 are finalised.
|- | ------------------------------------------------------------------------------------------------------------------------------

Annual Improvements to IFRSs 2010-2012 Cycle

The Annual Improvements to IFRSs 2010-2012 Cycle include a number of amendments to various IFRSs, which are summarised below.

The amendments to IFRS 2 (i) change the definitions of vesting condition and market condition; and (ii) add definitions
for performance condition and service condition which were previously included within the definition of vesting condition. The amendments to IFRS 2 are effective for share-based payment transactions for which the
grant date is on or after July 1, 2014.

The amendments to IFRS 3 clarify that contingent consideration that is classified as an asset or
a liability should be measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial instrument within the scope of IFRS 9 or IAS 39 or a non-financial asset or liability. Changes in fair value
(other than measurement period adjustments) should be recognised in profit and loss. The amendments to IFRS 3 are effective for business combinations for which the acquisition date is on or after July 1, 2014.

The amendments to IFRS 8 (i) require an entity to disclose the judgements made by management in applying the aggregation criteria to operating
segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have similar economic characteristics; and (ii) clarify that a reconciliation
of the total of the reportable segments assets to the entitys assets should only be provided if the segment assets are regularly provided to the chief operating decision-maker.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued

Annual Improvements to IFRSs 2010-2012 Cyclecontinued



The amendments to the basis for conclusions of IFRS 13 clarify that the issue of IFRS 13 and
consequential amendments to IAS 39 and IFRS 9 did not remove the ability to measure short- term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial.

The amendments to IAS 16 and IAS 38 remove perceived inconsistencies in the accounting for accumulated depreciation/amortisation when an item
of property, plant and equipment or an intangible asset is revalued. The amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the carrying amount of the asset and that accumulated
depreciation/amortisation is the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.

The amendments to IAS 24 clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity
should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not
required.

The directors do not anticipate that the application of the amendments included in the Annual Improvements to IFRSs 2010-2012 Cycle
will have a material effect on the Groups consolidated financial statements.

Annual Improvements to IFRSs
2011-2013 Cycle

The Annual Improvements to IFRSs 2011-2013 Cycle include a number of amendments to various IFRSs, which are
summarised below.

The amendments to IFRS 3 clarify that the standard does not apply to the accounting for the formation of all types of joint
arrangement in the financial statements of the joint arrangement itself.

The amendments to IFRS 13 clarify that the scope of the portfolio
exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, IAS 39 or IFRS 9, even if those contracts do
not meet the definitions of financial assets or financial liabilities within IAS 32.

The amendments to IAS 40 clarify that IAS 40 and IFRS 3
are not mutually exclusive and

application of both standards may be required. Consequently, an entity acquiring investment property must
determine whether:

(a) the property meets the definition of investment property in terms of IAS 40; and

(b) the transaction meets the definition of a business combination under IFRS 3.

The directors do not anticipate that the application of the amendments included in the Annual Improvements to IFRSs 2011-2013 Cycle will have a material effect on the Groups consolidated
financial statements.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



IFRS 9 Financial Instruments

IFRS 9 issued in 2009 introduces new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently amended in 2010 to
include the requirements for the classification and measurement of financial liabilities and for derecognition, and further amended in 2013 to include the new requirements for hedge accounting.

Key requirements of IFRS 9 are described as follows:



| |  |  | All recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement are subsequently measured at
amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on
the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair values at the end of subsequent reporting periods. In
addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in
profit or loss.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | With regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9 requires that the amount of change
in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liabilitys credit risk in
other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value of financial liabilities attributable to changes in the financial liabilities credit risk are not subsequently reclassified to
profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss was presented in profit or loss.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The new general hedge accounting requirements retain the three types of hedge accounting. However, greater flexibility has been introduced to the types
of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the
effectiveness test has been overhauled and replaced with the principle of an economic relationship. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entitys risk
management activities have also been introduced.

The directors anticipate that the adoption of IFRS 9 in the future may have a material
impact on the amounts reported in respect of the Groups financial assets and financial liabilities (e.g. the Groups investments in equity securities that are currently classified as available-for-sale investments may have to be measured
at fair value at the end of subsequent reporting periods, with changes in the fair value being recognised in other comprehensive income. Regarding the Groups financial assets, it is not practicable to provide a reasonable estimate of that
effect until a detailed review has been completed.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities

The amendments to IFRS 10 define an investment entity and require a reporting entity that meets the definition of an investment entity not to consolidate
its subsidiaries but instead to measure its subsidiaries at fair value through profit or loss in its financial statements.

To qualify as an
investment entity, a reporting entity is required to:



| |  |  | obtain funds from one or more investors for the purpose of providing them with professional investment management services;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | measure and evaluate performance of substantially all of its investments on a fair value basis.
| | - |  | -----------------------------------------------------------------------------------------------

Consequential amendments have been made to IFRS 12 and IAS 27 to introduce new disclosure requirements for investment entities.

The directors of the Company do not anticipate that the investment entities amendments will have any effect on the Groups consolidated financial
statements as the Company is not an investment entity.

Amendments to IAS 19 Defined Benefit Plans: Employee
Contributions

The amendments to IAS 19 clarify how an entity should account for contributions made by employees or third parties to
defined benefit plans, based on whether those contributions are dependent on the number of years of service provided by the employee.

For
contributions that are independent of the number of years of service, the entity may either recognise the contributions as a reduction in the service cost in the period in which the related service is rendered, or to attribute them to the
employees periods of service using the projected unit credit method; whereas for contributions that are dependent on the number of years of service, the entity is required to attribute them to the employees periods of service.

The directors of the Company do not anticipate that the application of these amendments to IAS 19 will have a material impact on the
Groups consolidated financial statements as the Group does not have any defined benefit plans.

Amendments to IAS
32 Offsetting Financial Assets and Financial Liabilities

The amendments to IAS 32 clarify existing application issues relating to the
offset of financial assets and financial liabilities requirements. Specifically, the amendments clarify the meaning of currently has a legally enforceable right of set-off and simultaneous realisation and settlement.

The directors of the Company do not anticipate that the application of these amendments to IAS 32 will have a material impact on the
Groups consolidated financial statements as the Group does not have any financial assets and financial liabilities that qualify for offset.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

3. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSContinued



Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets

The amendments to IAS 36 remove the requirement to disclose the recoverable amount of a cash generating unit (CGU) to which goodwill
or other intangible assets with indefinite useful lives had been allocated when there has been no impairment or reversal of impairment of the related CGU. Furthermore, the amendments introduce additional disclosure requirements regarding the fair
value hierarchy, key assumptions and valuation techniques used when the recoverable amount of an asset or CGU was determined based on its fair value less costs of disposal.

The directors of the Company do not anticipate that the application of these amendments to IAS 36 will have a material impact on the Groups consolidated financial statements.

Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting

The amendments to IAS 39 provide relief from the requirement to discontinue hedge accounting when a derivative hedging instrument is novated under certain
circumstances. The amendments also clarify that any change to the fair value of the derivative hedging instrument arising from the novation should be included in the assessment of hedge effectiveness.

The directors of the Company do not anticipate that the application of these amendments to IAS 39 will have material effect on the Groups
consolidated financial statements as the Group does not have any derivatives that are subject to novation.

IFRIC 
Int 21 Levies

IFRIC  Int 21 Levies addresses the issue of when to recognise a liability to pay a levy. The Interpretation
defines a levy, and specifies that the obligating event that gives rise to the liability is the activity that triggers the payment of the levy, as identified by legislation. The Interpretation provides guidance on how different levy arrangements
should be accounted for, in particular, it clarifies that neither economic compulsion nor the going concern basis of financial statements preparation implies that an entity has a present obligation to pay a levy that will be triggered by operating
in a future period.

The directors of the Company anticipate that the application of IFRIC  Int 21 will not have any material impact on
the Groups consolidated financial statements as the Group does not have any levy arrangements.

The directors considered that except for
the abovementioned standards or interpretations, the application of other standards or interpretations will have no material impact to the Groups financial statements.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIES



The consolidated financial statements have been prepared on the historical cost basis except for certain
financial instruments, which are stated at fair value. The accounting policies are set out below.

Basis of
consolidation

The consolidated financial statements include the financial statements of the Company and all of its subsidiaries.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are deconsolidated from the date that control ceases.

Income and expenses of subsidiaries acquired or disposed of during
the year are included in the consolidated income statement from the date on which control is transferred to the group or up to the date that control ceases, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of
the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Where
necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Changes in the Groups ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as
equity transactions. The carrying amounts of the Groups interests and the non-controlling interests are adjusted to reflect the changes in relative interests in the subsidiaries. Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

When the Group ceases to have control of the entity, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in
profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or
loss.

Business combination

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are
recognized in profit or loss as incurred.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Business
combinationcontinued



Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. Subsequent adjustments to the consideration are recognized against the cost of acquisition within the measurement period which does not exceed one year from the
acquisition date. Subsequent accounting for changes in fair values of the contingent consideration that do not qualify as measurement period adjustments is included in the income statement or within equity for contingent consideration classified as
an asset/liability and equity respectively.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the fair value of the acquirers previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed. If, after assessment, the Groups interest in the fair value of the acquirees identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair
value of the acquirers previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entitys net assets in the event of liquidation may be initially measured
either at fair value or at the non-controlling interests proportionate share of the recognized amounts of the acquirees identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. The Group
applies the non-controlling interests proportionate share of the recognized amounts of the acquirees identifiable net assets to account for all its acquisitions.

Combinations of businesses under common control are accounted for using the acquisition method, which is consistent with the accounting treatment for all other acquisitions of businesses. The principles
and details of this accounting treatment are set out above.

Interests in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method. Under the equity method, investments in associates are carried in
the consolidated balance sheet at cost and adjusted for post-acquisition changes in the Groups share of net assets of the associates, less any identified impairment loss. When the Groups share of losses of an associate equals or exceeds
its interest in that associate (which includes any long-term interests that, in substance, form part of the Groups net investment in the associate), the Group discontinues recognizing its share of further losses. Additional share of losses is
provided for and a liability is recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of that associate. If the associate subsequently reports profits, the Group resumes recognizing
its share of those profits only after its share of the profits exceeds the accumulated share of losses that has previously not been recognized.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Interests in
associatescontinued



Any excess of the cost of acquisition over the Groups share of the net fair value of the
identifiable assets, liabilities and contingent liabilities of the associate recognized at the date of acquisition is recognized as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as
part of the investment. Any excess of the Groups share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Groups
investment in associates. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of
value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment and the reversal of that impairment loss is recognized in accordance with IAS 36 to the
extent that the recoverable amount of the investment subsequently increases.

Where a group entity transacts with an associate of the Group,
profits and losses are eliminated to the extent of the Groups interest in the relevant associate.

Joint
arrangements

A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of
the arrangement, rather than rights to its assets and obligation for its liabilities. A joint operation is an arrangement in which the Group has joint control, whereby the Group has rights to the assets, and obligations for the liabilities, relating
to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

Joint ventures are accounted for using the equity method and the details of equity method of accounting have been set out in the accounting policy
forinterests in associates. When a group entity transacts with a jointly controlled entity of the Group, unrealized profits and losses are eliminated to the extent of the Groups interest in the joint venture.

When Group entity undertakes its activities under joint operations, the Group as a joint operator recognises its direct right to, and its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under appropriate headings.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods sold and services provided
in the normal course of business, net of discounts and sales related taxes. Provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably, revenue is recognized in profit
or loss as follows:

Sales of goods (including coal and methanol) are recognized upon transfer of the significant risks and rewards of
ownership to the customer. This is usually taken as the time when the goods are delivered and the customer has accepted the goods.

Service
income such as coal railway transportation and electricity and heat supply is recognized when services are provided.

Interest income from a
financial asset is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts the estimated future cash receipts through the expected life of the
financial assets to that assets net carrying amount.

Dividend income from investments is recognized when the shareholders rights
to receive payments have been established.

Intangible assets (other than goodwill)

Intangible assets acquired separately

Intangible assets acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized over their estimated useful lives. The estimated
useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Internally-generated intangible assets  research and development expenditure

Expenditure on research activities is recognized as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development expenditure is recognized only if it is anticipated that the development costs incurred
on a clearly-defined project will be recovered through future commercial activity. The resultant asset is amortized on a straight line basis over its useful life. Expenditure incurred on projects to develop new products is capitalized only when the
Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic
benefits, the availability of resources to complete the project and the ability to measure reliably the expenditure during the development.

Intangible assets acquired in a business combination

Intangible assets acquired in a
business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost).



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Intangible assets
(other than goodwill)continued

Intangible assets acquired in a business combinationcontinued





Subsequent to initial recognition, intangible assets acquired in a business combination are reported at
cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

(i) Mining reserves

Mining reserves represent the portion of total proven and
probable reserves in the mine of a mining right. Mining reserves are amortized over the life of the mine on a unit of production basis of the estimated total proven and probable reserves or the Australia Joint Ore Reserves Committee
(JORC) reserves for the Groups subsidiaries in Australia. Changes in the annual amortization rate resulting from changes in the remaining reserves are applied on a prospective basis from the commencement of the next financial year.

(ii) Mining resources

Mining resources represent the fair value of economically recoverable reserves (excluding the portion of total proven and probable reserves of a mining right i.e. does not include the above mining
reserves) of a mining right (Details are set out in the accounting policy of exploration and evaluation expenditure). When production commences, the mining resources for the relevant areas of interest are amortized over the life of the area
according to the rate of depletion of the economically recoverable reserves.

Exploration and evaluation expenditure

Exploration and evaluation expenditure incurred is accumulated in respect of each separately identifiable area of interest which is at
individual mine level. These costs are only carried forward where the right of tenure for the area of interest is current and to the extent that they are expected to be recouped through successful development and commercial exploitation, or
alternatively, sale of the area, or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves and active and significant operations in, or in relation to, the
area of interest are continuing.

The carrying amount of exploration and evaluation assets is assessed for impairment when facts or
circumstances suggest the carrying amount of the assets may exceed their recoverable amount.

A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Accumulated costs in relation to an abandoned area are written-off in full in the period in which the decision to abandon the area
is made.

When production commences, the accumulated costs for the relevant area of interest are amortized over the life of the area according
to the rate of depletion of the economically recoverable reserves.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Exploration and
evaluation expenditurecontinued



Capitalized exploration and evaluation expenditure considered to be tangible is recorded as a component
of property, plant and equipment. Otherwise, it is recorded as an intangible asset.

Exploration and evaluation expenditure acquired in a
business combination are recognized at their fair value at the acquisition date (the fair value of potential economically recoverable reserves at the acquisition date which is shown as Mining resources)

Prepaid lease payments

Prepaid lease payments represent land use rights under operating lease arrangement and are stated at cost less accumulated amortization and accumulated impairment losses.

Property, plant and equipment

Property, plant and equipment, other than construction in progress and freehold land, are stated at cost less subsequent accumulated depreciation and accumulated impairment losses.

Depreciation is charged so as to write off the cost of items of property, plant and equipment, other than construction in progress and freehold land,
over their estimated useful lives and after taking into account their estimated residual value, using the straight line method or unit of production method.

Construction in progress represents property, plant and equipment under construction for production or for its own use purposes. Construction in progress is carried at cost less any impairment loss.
Construction in progress is classified to the appropriate category of property, plant and equipment when completed and ready for intended use. Depreciation commences when the assets are ready for their intended use.

Any gain or loss arising on the disposal of an item of property, plant and equipment is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognized immediately in the consolidated income statement.

Impairment other than
goodwill

At each balance sheet date, the Group reviews the carrying amounts of its tangible assets and intangible assets with finite
useful life to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset (determined at the higher of its fair value less costs to sell and its
value in use) is estimated in order to determine the extent of the impairment loss (if any). Intangible assets with an indefinite useful life will be tested for impairment annually.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment loss is recognized as an expense immediately.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Impairment other
than goodwillcontinued



Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit)
is increased to the revised estimate of its recoverable amount, but such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating
unit) in prior years. A reversal of an impairment loss is recognized as an income immediately.

For the purposes of impairment testing, assets
are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Assessment is performed for each area of
interest in conjunction with the group of operating assets (representing a cash generating unit) to which the mining activity (mining complex level) is attributed. Management monitors and manages operations at the mining complex level to identify
cash-generating streams.

Goodwill

Goodwill arising on acquisitions prior to January 1, 2005 (transition to new IFRS)

Goodwill arising on an acquisition of net assets and operations of another entity for which the agreement date is before January 1, 2005 represents
the excess of the cost of acquisition over the Groups interest in the fair value of the identifiable assets and liabilities of the relevant acquiree at the date of acquisition.

The Group has discontinued amortization from January 1, 2005 onwards, and such goodwill is tested for impairment annually, and whenever there is an indication that the cash-generating unit to which
the goodwill relates may be impaired (see the accounting policy below).

Goodwill arising on acquisitions on or after
January 1, 2005

Goodwill arising on an acquisition of a business for which the agreement date is on or after January 1, 2005
represents the excess of the cost of acquisition over the Groups interest in the fair value of the identifiable assets, liabilities and contingent liabilities of the relevant business at the date of acquisition. Such goodwill is carried at
cost less any accumulated impairment losses.

Goodwill is presented separately in the consolidated balance sheet.

For the purposes of impairment testing, goodwill is allocated to each of the Groups cash-generating units expected to benefit from the synergies of
the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is
less than the carrying amount of the unit, the impairment loss is allocated to reduce the carrying amount of any goodwill allocated to the unit first and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset
in the unit. Any impairment is recognized immediately in the consolidated income statement and is not subsequently reversed.

On disposal of
the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the gain or loss on disposal.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand, demand deposits with banks and other financial institution and short term highly liquid
investments with original maturities of three months or less that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. For the preparation of consolidated cash flow statement, cash
and cash equivalents include bank overdrafts which are repayable on demand and form an integral part of the Groups cash management.

Inventories

Inventories of coal and methanol are stated at the lower of cost and
net realizable value. Cost, which comprises direct materials and, where applicable, direct labour and overheads that have been incurred in bringing the inventories to their present location and condition, is calculated using the weighted average
method. Net realizable value represents the estimated selling price less all further costs to completion and costs to be incurred in selling, marketing and distribution.

Inventories of auxiliary materials, spare parts and small tools expected to be used in production are stated at weighted average cost less allowance, if necessary, for obsolescence.

Overburden in advance

Overburden in advance comprises mining stripping (waste removal) costs both during the development and production phase of the Groups operations.

When stripping costs are included in the development phase of a mine before the production phase commences (development stripping). Such expenditure is
capitalised as part of the cost of constructing the mine if it can be demonstrated that it is probable that future economic benefits will be realised, the costs can be reliably measured and the entity can identify the component of the ore body for
which access has been improved. The stripping assets subsequently amortised over its useful life using a units of production method, in accordance with the policy applicable to mine properties. The capitalisation of development stripping costs
ceases when the mine/component is commissioned and ready for use as intended by management.

Waste development costs incurred in the
production phase creates two benefits, being either the production of inventory or improved access to the ore to be mined in the future. Where the benefits are realised in the form of inventory produced in the period, the production stripping costs
are accounted for as part of the cost of producing those inventories. Where production stripping costs are incurred and the benefit is improved access to ore to be mined in the future, the costs are recognised as a stripping activity asset in mine
properties.

If the costs of the inventory produced and the stripping asset are not separately identifiable, the allocation is undertaken
based on waste-to-ore stripping ratio for the particular ore component concerned. If mining of waste in a period occurs in excess of the expected life-of-component average waste-to-ore strip ratio, the excess is recognised as part of the stripping
asset. Where mining occurs at or below the expected life-of-component stripping ratio in a period, the entire production stripping cost is allocated to the cost of the ore inventory produced.

Amortisation is provided on the units-of-production method over the life of the identified component of orebody. The units-of-production method results in an amortisation charge proportional to the
depletion of the economically recoverable mineral resources (comprising proven and probable reserves).

Stripping costs that do not satisfy
the asset recognition criteria are expensed.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Overburden in
advancecontinued



The assumptions used by management to estimate saleable coal production, run-of-mine (ROM) coal tonnes
mined, and the weighted average cost to remove a bank cubic metre (BCM) of waste include a range of geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs, transport costs,
commodity demand, commodity prices and exchange rates. Estimating the quantity and/or grade of reserves requires a determination of the size, shape and depth of ore bodies or fields by analyzing geological data such as drilling samples. Changes in
reported reserves may affect overburden removal costs since the costs may change due to changes in stripping ratios or the units of production basis of depreciation. Any changes in estimates are reflected on a prospective basis.

Taxation

Income
tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the
year. Taxable profit differs from profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Groups liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable
profit, and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable
profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax
liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, interest in associates and joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited in the consolidated income
statement, except when it relates to items that are recognized in other comprehensive income or directly in equity, in which case the deferred tax is also recognized in other comprehensive income or directly in equity respectively.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Taxationcontinued



The Companys wholly-owned Australian subsidiaries have formed an income tax consolidated group
under the tax consolidation regime. Each entity in the tax consolidated group recognizes its own deferred tax assets and liabilities, except where the deferred tax assets relate to unused tax losses and credits, in which case the Australian
subsidiaries recognizes the assets. Australian subsidiaries have entered into a tax sharing agreement whereby each company of Australian subsidiaries contributes to the income tax payable in proportion to their contribution to the profit before tax
of the tax consolidated group. The tax consolidated group has also entered into a tax funding agreement whereby each entity in Australian subsidiaries group can recognize their balance of the current tax assets and liabilities through inter-entity
accounts.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



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. The Group may also be required to make payments for restoration, rehabilitation or environmental protection of the land after the underground sites have been mined.

An estimate of such costs is recognized in the period in which the obligation is identified and is charged as an expense in proportion to the coal extracted. At each balance sheet date, the Group adjusts
the estimated costs in accordance with the actual land subsidence status. The provision is also adjusted for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalised cost, except where a reduction in the
provision is greater than the undepreciated capitalised cost of any related assets, in which case the capitalised cost is reduced to nil and remaining adjustment is recognized in the income statement. Changes to the capitalised cost result in an
adjustment to future depreciation and financial charges.

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All
other leases are classified as operating leases.

Where the Group acquires the use of assets under finance leases, the amounts representing
the fair value of the leased asset, or, if lower, the present values of the minimum lease payments of such assets are included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as an obligation
under finance leases.

Each lease payment is allocated between liability and finance charges so as to achieve a constant rate of interest on
the remaining balance of the liability. The finance lease liabilities are included in current and non-current borrowings. The finance charges are expensed in the income statement over the lease periods so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period. The assets accounted for as finance leases are depreciated over the shorter of their estimated useful lives or the lease periods.

Operating lease payments are recognized as an expense on a straight-line basis over the lease term. Contingent rentals arising under operating leases are
recognized as an expense in the period in which they are incurred.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



Provisions and contingent liabilities

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow
of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to
settle the obligation.

All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within
the control of the Group are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of those assets. Investment income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Capitalization of borrowing costs is suspended or ceases when substantially all the
activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete.

All other borrowings costs are
recognized as expenses in the period in which they are incurred.

Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the functional currency of that entity
(foreign currencies) are recorded in the respective functional currency (i.e., the currency of the primary environment in which the entity operates) at the rates of exchanges prevailing on the dates of the transactions. At each balance sheet date,
monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the
date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are recognized in profit or loss in the period in which they arise.

Exchange differences on monetary items receivable from or payable to foreign operation for which settlement is neither planned nor likely to occur
(therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Foreign
currenciescontinued



For the purposes of presenting the consolidated financial statements, the assets and liabilities of the
Groups foreign operations are translated into the presentation currency of the Company (i.e. Renminbi) at the rate of exchange prevailing at the balance sheet date, and their income and expenses are translated at the average exchange rates for
the year, unless exchange rates fluctuate significantly during the period, in which case, the exchange rates prevailing at the dates of transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and
accumulated in equity (attributed to non-controlling interests as appropriate). Such exchange differences are recognized in profit or loss in the period in which the foreign operation is disposed of.

Government grants

Government grants are recognized as income over the periods necessary to match them with the related costs. If the grants do not relate to any specific
expenditure incurred by the Group, they are reported separately as other income. If the grants subsidize an expense incurred by the Group, they are deducted in reporting the related expense. Grants relating to depreciable assets are presented as a
deduction from the cost of the relevant asset.

Annual leave, sick leave and long service leave

Benefits accruing to employees in respect of wages and salaries, annual leave and sick leave are included in trade and other payables. Related on-costs
are also included in trade and other payables as other creditors. Long service leave is provided for when it is probable that settlement will be required and it is capable of being measured reliably.

Employee benefits expected to be settled within 12 months are measured using the remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to
the balance sheet date.

Retirement benefit costs

Payments to defined contribution retirement benefit plans are charged as expenses when the employees render the services entitling them to the contributions.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets
and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

The Groups financial assets are classified into loans and receivables, financial assets at fair value through profit or loss and
available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of
assets within the time frame established by regulation or convention in the marketplace. The accounting policies adopted in respect of financial assets are set out below.

Loans and receivables

Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted in an active market. Loans and receivables (including bank balances and cash, term deposits, restricted cash, bills and accounts receivable, other current assets and long-term receivables) are
subsequently measured at amortized cost using the effective interest method, less any identified impairment loss.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss included financial assets held for trading and financial assets designated as fair value through profit or loss upon initial recognition. Financial
assets are classified as held for trading if it is acquired principally for the purpose of selling or repurchasing it in the near term or on initial recognition it is part of a portfolio of identified financial instruments that are managed together
and for which there is evidence of a recent actual patter of short-term profit-taking.

Royalty receivable is remeasured based on sales volume,
price changes, foreign currency exchange rates and expected future cash flows at each balance sheet date. The gain or loss arising from the change in fair value of royalty receivable is recognized in profit or loss. Royalty receivable is reduced by
cash receipts and decreases with time. Since the contract is long term, the unwinding discount (to reflect time value of money) is recognized in interest income.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Financial
instrumentscontinued

Financial assetscontinued



Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated or not classified as financial assets at fair value through profit or
loss, loans and receivables or held-to-maturity investments.

At each balance sheet date subsequent to initial recognition, available-for-sale
financial assets are measured at fair value. Changes in fair value are recognized initially in other comprehensive income and accumulated in equity, until the financial asset is disposed of or is determined to be impaired, at which time, the
cumulative gain or loss previously recognized in equity is removed from equity and recognized in profit or loss (see accounting policy on impairment loss on financial assets below).

Available-for-sale equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less any identified impairment losses
at each balance sheet date subsequent to initial recognition (see accounting policy on impairment loss on financial assets below).

Impairment of financial assets

Financial assets are assessed for indicators of
impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the
financial assets have been impacted.

For an available-for sale equity investment, a significant or prolonged decline in the fair value of
that investment below its cost is considered to be objective evidence of impairment.

For all other financial assets, objective evidence of
impairment could include:



| |  |  | significant financial difficulty of the issuer or counterparty; or
| | - |  | ------------------------------------------------------------------



| |  |  | default or delinquency in interest or principal payments; or
| | - |  | ------------------------------------------------------------



| |  |  | it becoming probable that the borrower will enter bankruptcy or financial re-organization.
| | - |  | ------------------------------------------------------------------------------------------

For certain categories of financial asset, such as trade and bills receivables, assets that are assessed not to be impaired individually are subsequently
assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Groups past experience of collecting payments and changes in national or local economic conditions that correlate
with default on receivables.

For financial assets carried at amortized cost, an impairment loss is recognized in profit or loss when there is
objective evidence that the asset is impaired, and is measured as the difference between the assets carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Financial
instrumentscontinued

Financial assetscontinued

Impairment of financial assetsContinued



For available-for-sale equity investments carried at cost, the amount of the impairment loss is measured
as the difference between the assets carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in
subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the
exception of trade and bills receivables and other receivables, where the carrying amounts are reduced through the use of an allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss. When a trade
and bills receivables and other receivables are considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited to profit or loss.

For financial assets measured at amortized cost, if, in a subsequent period, the amount of impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment losses was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed
does not exceed what the amortized cost would have been had the impairment not been recognized.

Impairment losses on available-for-sale
equity investments will not be reversed in profit or loss in subsequent periods. Any increase in fair value subsequent to impairment loss is recognized initially in other comprehensive income and accumulated in equity.

Financial liabilities and equity

Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an
equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of
its liabilities.

Financial liabilities

The Groups financial liabilities including bills and accounts payables, other payables, amounts due to Parent Company and its subsidiary companies, finance lease liabilities, guaranteed notes and
bank and other borrowings which are initially recognised at fair value and subsequently measured at amortized cost, using the effective interest method and financial liabilities at fair value through profit or loss.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Financial
instrumentsContinued

Financial liabilities and equitycontinued



Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated at initial
recognition as at fair value through profit and loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Derecognition

Financial assets are derecognized when the rights to receive cash flows from the assets expire or, the financial assets are transferred and the Group has
transferred substantially all the risks and rewards of ownership of the financial assets or, the financial assets has been transferred, although the company has neither transferred nor retained substantially all the risk and rewards of ownership of
the financial assets, but the Company give up control of the financial assets.

On derecognition of a financial asset, the difference between
the assets carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized directly in equity is recognized in profit or loss.

Financial liabilities are derecognized when the obligation specified in the relevant contract is discharged, cancelled or expired. The difference between
the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

Accounting for derivative financial instruments and hedging activities

Derivatives are
initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either: (i) hedges of the fair value of recognized assets or liabilities (fair value hedge); and (ii) hedges of highly probable
forecast transactions (cash flow hedge).



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued

Financial
instrumentscontinued

Financial liabilities and equitycontinued

Accounting for derivative financial instruments and hedging activitiescontinued



The Group documents at the inception of the transaction the relationship between hedging instruments and
hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at the inception of the hedge and on an ongoing basis, of whether the derivatives that
are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items.

The fair values
of various derivative instruments used for hedging purposes are disclosed in note 36. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months
and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

(i) Cash
flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are
recognized initially in other comprehensive income and accumulated in equity. The gain or loss relating to the ineffective portion is recognized immediately in the profit and loss. Amounts accumulated in equity are recognized in the profit and loss
as the underlying hedged items are recognized.

Amounts previously recognized in other comprehensive income and accumulated in equity are
reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss.

When a hedging instrument expires or is
sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the profit and loss.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the profit or loss.

(ii) Derivatives that do not qualify for hedge accounting and those not designated as hedging instruments

Changes in the fair value of any derivative instruments that do not qualify for hedge accounting and those not designated as hedges are recognized immediately in the profit or loss.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

4. SIGNIFICANT ACCOUNTING POLICIESContinued



Related Parties



|(a) | A person, or a close member of that persons family, is related to the group if that person:
|--- | --------------------------------------------------------------------------------------------



| | (1) | has control or joint control over the group;
| | --- | --------------------------------------------



| | (2) | has significant influence over the group; or
| | --- | --------------------------------------------



| | (3) | is a member of the key management personnel of the group or the groups parent.
| | --- | -------------------------------------------------------------------------------

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in
their dealings with the entity.



|(b) | An entity is related to the group if any of the following conditions applies:
|--- | -----------------------------------------------------------------------------



| | (1) | The entity and the group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others);
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | Both entities are joint ventures of the same third party;
| | --- | ---------------------------------------------------------



| | (4) | One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
| | --- | ---------------------------------------------------------------------------------------------------------



| | (5) | The entity is a post-employment benefit plan for the benefit of employees of either the group or an entity related to the group;
| | --- | --------------------------------------------------------------------------------------------------------------------------------



| | (6) | The entity is controlled or jointly controlled by a person identified in (a); or
| | --- | --------------------------------------------------------------------------------



| | (7) | A person identified in (a)(1) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



5. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Groups accounting policies, which are described in note 4, management is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Depreciation of property, plant and equipment

The cost of mining structures is depreciated using the unit of production method based on the estimated production volume for which the structure was designed. The management exercises their judgment in
estimating the useful lives of the depreciable assets and the production volume of the mine. The estimated coal production volumes are updated at regular intervals and have taken into account recent production and technical information about each
mine. These changes are considered a change in estimate for accounting purposes and are reflected on a prospective basis in related depreciation rates. Estimates of the production volume are inherently imprecise and represent only approximate
amounts because of the subjective judgements involved in developing such information.

Amortization of assets

Mining reserve and mining resources are amortized on a straight line basis or unit of production basis over the shorter of their
useful lives and the contractual period. The expensing of overburden removal costs is based on saleable coal production over estimated economically recoverable reserves. The useful lives are estimated on the basis of the total proven and probable
reserves of the mine. Proven and probable mining reserve estimates are updated at regular intervals and have taken into account recent production and technical information about each mine.

Provision for land subsidence, restoration, rehabilitation and environmental costs

The provision is reviewed regularly to verify that it properly reflects the remaining obligation arising from the current and past mining activities.
Provision for land subsidence, restoration, rehabilitation and environmental costs are determined by the management based on their best estimates of the current and future costs, latest government policies and past experiences.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

5. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTYContinued



Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The
value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate the present value. As at December 31, 2013, the carrying amount of
goodwill is RMB2,460,551,000 (2012: RMB2,573,811,000). During the year ended December 31, 2013, no impairment loss on goodwill (2012: RMB17,625,000) was recognised by the Group and details are set out in note 25.

Cash flow projections during the budget period for each of the above units are based on the budgeted revenue and expected gross margins during the budget
period and the raw materials price inflation during the budget period. Expected cash inflows/outflows have been determined based on past performance and managements expectations for the market development.

Estimated impairment of property, plant and equipment

When there is an impairment indicator, the Group takes into consideration the estimation of future cash flows. The amount of the impairment loss is measured as the difference between the assets
carrying amount and the present value of estimated future cash flows. Where the actual future cash flows are less than expected, a material impairment loss may arise. In estimating the future cash flows, the management have taken into account the
recent production and technical advancement. As prices and cost levels change from year to year, the estimate of the future cash flow also changes. Notwithstanding the management has used all the available information to make their impairment
assessment, inherent uncertainty exists on conditions of the mine and of the environment and actual written off may be higher than the amount estimated. As at December 31, 2013, the carrying amounts of property, plant and equipment is
approximately RMB41,896,508,000 (2012: RMB39,503,103,000). During the year ended December 31, 2013, no property, plant and equipment was written off as expenses (2012: nil; 2011: nil). In addition, during the year ended December 31, 2013,
no impairment loss on property, plant and equipment (2012: RMB226,925,000; 2011: RMB281,994,000) was recognized by the Group and the details of impairment are set out in note 24.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

5. ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTYContinued

Estimated impairment of property, plant and equipmentcontinued



Most of the coal sales by Premier and Wesfarmers Char are governed by a contract signed with an
independent power station. The remaining coal sales are to independent third parties which are sold at market prices. The contract with the power station was a required condition in order for the government to grant the mining rights to Premier and
Wesfarmers Char. The sales price under the contract is below market price and Premier and Wesfarmers Char are unable to negotiate to revise the terms of the existing contract, including the sale price of coal. Given the current level of market price
of coal and rising costs, the Company also expected that the power station may purchase more coal from Premier and Wesfarmers Char, which will drive down the Companys overall average sales prices. In 2012, a combined assessment of Premier and
Wesfarmers Char, being a cash-generating unit, was performed, and hence in 2012, the Company recorded impairment on intangible assets (mining reserves and mining resources) of RMB417,214,000, property, plant and equipment (mining structures) of
RMB226,925,000 and goodwill of RMB17,625,000 as selling, general and administrative expenses in its statement of comprehensive income as set out in Note 9 to the financial statements. The Company used the value-in-use method to assess the impairment
and the key assumptions included the future market price of the coal, sales volume, and mining costs. The changes in these key assumptions that were applied in the impairment analysis were a decrease of the average coal price from AUD76 per tonne to
AUD24 per tonne, a decrease in total sales volume from 141 million tonne to 58 million tonne, an increase in average nominal operating cost from AUD48 per tonne to AUD62 per tonne and an increase in capital expenditure from AUD460 million
to AUD584 million. During the year, no provision for impairment losses were made for Premier and Wesfarmers Char by the Group.

In the process
of applying the Groups accounting policies, management has made the following accounting judgements:

Acquisitions

In 2013, the Group acquired a subsidiary and business as set out in note 43. The Group determined whether the acquisition are to be
accounted for as acquisition of business or as acquisition of assets by reference to a number of factors including (i) whether the acquiree has relevant input, process or output; (ii) whether the acquire has planned principal activities or
is pursuing a plan to produce output and will be able to obtain access to customers.

In addition, the management also made judgement to
determine if the Group has taken control over the subsidiaries or assets acquired as from time to time, the registration of transfer of certain operating licences may not be changed immediately upon the payment of consideration.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



6. SEGMENT INFORMATION

The Group is engaged primarily in the mining business. The Group is also engaged in the coal railway transportation business. The Company does not currently have direct export rights in the PRC and all of
its export sales is made through China National Coal Industry Import and Export Corporation (National Coal Corporation), Minmetals Trading Co., Ltd. (Minmetals Trading) or Shanxi Coal Imp. & Exp. Group Corp.
(Shanxi Coal Corporation). The exploitation right of the Groups foreign subsidiaries is not restricted. The final 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 and associates are engaged in trading and processing of mining machinery and the transportation business via rivers and lakes and financial services in the PRC.
No separate segment information about these businesses is presented in these financial statements as the underlying gross sales, results and assets of these businesses, which are currently included in the mining business segment, are insignificant
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.

Gross revenue disclosed below is same as the turnover.

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 segment information.

Principal activities are as follows:



|                                      |  |  |   |  |  |                                                                                              
|------------------------------------- |  |  | - |  |  | ---------------------------------------------------------------------------------------------
|Mining                                |  |  | - |  |  | Underground and open-cut mining, preparation and sales of coal and potash mineral exploration
|Coal railway transportation           |  |  | - |  |  | Provision of railway transportation services                                                 
|Methanol, electricity and heat supply |  |  | - |  |  | Production and sales of methanol and electricity and related heat supply services            

The accounting policies of the reportable segments are same as the Groups accounting policies described in note 4.
Segment results represents the results of each segment without allocation of corporate expenses and directors emoluments, results of associates and joint ventures, interest income, interest expenses and income tax expenses. This is the measure
reported to the chief operating decision maker for the purposes of resources allocation and assessment of segment performance.

Unallocated
corporate income for the three years ended December 31, 2013 mainly included exchange gain and other sundry items. Unallocated corporate income for the year ended December 31, 2012 also included bargain purchase of RMB1,269,269,000 (note 45).

Unallocated corporate expenses for the three years ended December 31, 2013 mainly included bank charges, salaries and other employee
benefits, miscellaneous taxes and other sundry items.

Unallocated corporate assets at December 31, 2011, 2012 and 2013 mainly included cash
at bank, investments in securities and other sundry items.

Unallocated corporate liabilities at December 31, 2011, 2012 and 2013 mainly
included bank borrowings, deferred taxation and sundry items.



F-44



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



Segment information about these businesses is presented below:

INCOME STATEMENT



|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|------------- |  | ------------------------------------ | ---------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ------------ |  |  | ------------ | -------- | - |  |  | ---------- | 
|              |  | For the year ended December 31, 2013 |           
|              |  | Mining                               |            |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Eliminations |  |  | Consolidated |         
|              |  | RMB000                              |            |  | RMB000                    |  |         | RMB000                            |  |  | RMB000      |  |  | RMB000      |         
|GROSS REVENUE |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|External      |  |                                      | 54,444,843 |  |                            |  | 457,898 |                                    |  |  | 1,499,085    |  |  |              |         |   |  |  | 56,401,826 | 
|Inter-segment |  |                                      | 456,117    |  |                            |  | 43,337  |                                    |  |  | 292,994      |  |  |              | (792,448 | ) |  |  |           | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|Total         |  |                                      | 54,900,960 |  |                            |  | 501,235 |                                    |  |  | 1,792,079    |  |  |              | (792,448 | ) |  |  | 56,401,826 | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 

Inter-segment revenue is charged at prices pre-determined by the relevant governmental authority.



|                                     |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  
|------------------------------------ |  | ------------------------------------ | --------- | - | -------------------------- |  | ------ | ---------------------------------- |  |  | ------------ |  |  | ------------ | - |  |  |  | ----------- | -
|                                     |  | For the year ended December 31, 2013 |          
|                                     |  | Mining                               |           |   | Coal railwaytransportation |  |        | Methanol,electricityand heatsupply |  |  | Eliminations |  |  | Consolidated |  
|                                     |  | RMB000                              |           |   | RMB000                    |  |        | RMB000                            |  |  | RMB000      |  |  | RMB000      |  
|RESULT                               |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  
|Segment results                      |  |                                      | 1,844,605 |   |                            |  | 22,720 |                                    |  |  | 403,702      |  |  |              |  |  |  |  | 2,271,027   |  
|                                     |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  
|Unallocated corporate expenses       |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | (1,504,126  | )
|Unallocated corporate income         |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | 71,395      |  
|Interest income                      |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | 489,348     |  
|Share of (loss) profit of associates |  |                                      | (330,158  | ) |                            |  |       |                                    |  |  | 564,055      |  |  |              |   |  |  |  | 233,897     |  
|Share of loss of joint ventures      |  |                                      | (376,032  | ) |                            |  |       |                                    |  |  |             |  |  |              |   |  |  |  | (376,032    | )
|Interest expenses                    |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | (1,765,777) |  
|                                     |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  
|Loss before income taxes             |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | (580,268    | )
|Income taxes                         |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | 394,815     |  
|                                     |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  
|Loss for the year                    |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  | (185,453    | )
|                                     |  |                                      |           |   |                            |  |        |                                    |  |  |              |  |  |              |   |  |  |  |             |  



F-45



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



BALANCE SHEET



|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|--------------------------------- |  | -------------------- | ----------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ------------ |  |  |  | ----------- | 
|                                  |  | At December 31, 2013 |            
|                                  |  | Mining               |             |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Consolidated | 
|                                  |  | RMB000              |             |  | RMB000                    |  |         | RMB000                            |  |  | RMB000      | 
|ASSETS                            |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|Segment assets                    |  |                      | 102,090,643 |  |                            |  | 363,874 |                                    |  |  | 5,682,418    |  |  |  | 108,136,935 | 
|Interests in associates           |  |                      | 1,561,859   |  |                            |  |        |                                    |  |  | 1,183,098    |  |  |  | 2,744,957   | 
|Interests in joint ventures       |  |                      | 488,350     |  |                            |  |        |                                    |  |  |             |  |  |  | 488,350     | 
|Unallocated corporate assets      |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  | 16,087,947  | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  | 127,458,189 | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|LIABILITIES                       |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|Segment liabilities               |  |                      | 31,275,948  |  |                            |  | 170,879 |                                    |  |  | 3,735,244    |  |  |  | 35,182,071  | 
|Unallocated corporate liabilities |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  | 48,290,057  | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  | 83,472,128  | 
|                                  |  |                      |             |  |                            |  |         |                                    |  |  |              |  |  |  |             | 

OTHER INFORMATION



|                                                                                  |  |                                      |            |   |                            |  |        |                                    |  |  |           |  |  |              |       |  |  |  |            |  
|--------------------------------------------------------------------------------- |  | ------------------------------------ | ---------- | - | -------------------------- |  | ------ | ---------------------------------- |  |  | --------- |  |  | ------------ | ----- |  |  |  | ---------- | -
|                                                                                  |  | For the year ended December 31, 2013 |           
|                                                                                  |  | Mining                               |            |   | Coal railwaytransportation |  |        | Methanol,electricityand heatsupply |  |  | Corporate |  |  | Consolidated |      
|                                                                                  |  | RMB000                              |            |   | RMB000                    |  |        | RMB000                            |  |  | RMB000   |  |  | RMB000      |      
|Capital additions (note 1)                                                        |  |                                      | 18,709,633 |   |                            |  | 22,285 |                                    |  |  | 1,519,220 |  |  |              | 36    |  |  |  | 20,251,174 |  
|Amortization of intangible assets                                                 |  |                                      | 1,323,031  |   |                            |  |       |                                    |  |  | 2,047     |  |  |              |      |  |  |  | 1,325,078  |  
|Release of prepaid lease payments                                                 |  |                                      | 10,020     |   |                            |  | 5,372  |                                    |  |  | 3,336     |  |  |              |      |  |  |  | 18,728     |  
|Impairment loss on intangible assets                                              |  |                                      | 2,052,238  |   |                            |  |       |                                    |  |  |          |  |  |              |      |  |  |  | 2,052,238  |  
|Write-off on inventories                                                          |  |                                      | 58,274     |   |                            |  |       |                                    |  |  |          |  |  |              |      |  |  |  | 58,274     |  
|Depreciation of property, plant and equipment                                     |  |                                      | 2,612,359  |   |                            |  | 68,098 |                                    |  |  | 442,392   |  |  |              | 2,104 |  |  |  | 3,124,953  |  
|Impairment losses (reversed) charged on accounts receivable and other receivables |  |                                      | (3,799     | ) |                            |  |       |                                    |  |  | 2,683     |  |  |              | 374   |  |  |  | (742       | )
|                                                                                  |  |                                      |            |   |                            |  |        |                                    |  |  |           |  |  |              |       |  |  |  |            |  



|        |  |                                                                                           
|------- |  | ------------------------------------------------------------------------------------------
|Note 1: |  | Capital additions include those arising from the acquisition of Hao Sheng during the year.



F-46



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



Segment information about these businesses is presented below:

INCOME STATEMENT



|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|------------- |  | ------------------------------------ | ---------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ------------ |  |  | ------------ | -------- | - |  |  | ---------- | 
|              |  | For the year ended December 31, 2012 |           
|              |  | Mining                               |            |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Eliminations |  |  | Consolidated |         
|              |  | RMB000                              |            |  | RMB000                    |  |         | RMB000                            |  |  | RMB000      |  |  | RMB000      |         
|GROSS REVENUE |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|External      |  |                                      | 56,200,600 |  |                            |  | 464,068 |                                    |  |  | 1,481,516    |  |  |              |         |   |  |  | 58,146,184 | 
|Inter-segment |  |                                      | 219,230    |  |                            |  | 32,560  |                                    |  |  | 284,425      |  |  |              | (536,215 | ) |  |  |           | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 
|Total         |  |                                      | 56,419,830 |  |                            |  | 496,628 |                                    |  |  | 1,765,941    |  |  |              | (536,215 | ) |  |  | 58,146,184 | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |              |  |  |              |          |   |  |  |            | 

Inter-segment revenue is charged at prices pre-determined by the relevant governmental authority.



|                                |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  
|------------------------------- |  | ------------------------------------ | --------- | - | -------------------------- |  | ------- | ---------------------------------- |  |  | ------------ |  |  | ----------------- | - |  |  |  | ---------- | -
|                                |  | For the year ended December 31, 2012 |          
|                                |  | Mining                               |           |   | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Eliminations |  |  | Consolidated      |  
|                                |  | RMB000(restated)                    |           |   | RMB000                    |  |         | RMB000                            |  |  | RMB000      |  |  | RMB000(restated) |  
|RESULT                          |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  
|Segment results                 |  |                                      | 6,980,578 |   |                            |  | (52,848 | )                                  |  |  | 91,420       |  |  |                   |  |  |  |  | 7,019,150  |  
|                                |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  
|Unallocated corporate expenses  |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | (2,159,979 | )
|Unallocated corporate income    |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | 1,987,137  |  
|Interest income                 |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | 722,336    |  
|Share of profit of associates   |  |                                      | 33,552    |   |                            |  |        |                                    |  |  | 108,434      |  |  |                   |  |  |  |  | 141,986    |  
|Share of loss of joint ventures |  |                                      | (191,575  | ) |                            |  |        |                                    |  |  |             |  |  |                   |  |  |  |  | (191,575   | )
|Interest expenses               |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | (1,448,679 | )
|                                |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  
|Profit before income taxes      |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | 6,070,376  |  
|Income taxes                    |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | (36,189    | )
|                                |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  
|Profit for the year             |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  | 6,034,187  |  
|                                |  |                                      |           |   |                            |  |         |                                    |  |  |              |  |  |                   |   |  |  |  |            |  



F-47



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



BALANCE SHEET



|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|--------------------------------- |  | -------------------- | ---------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ----------------- |  |  |  | ----------- | 
|                                  |  | At December 31, 2012 |           
|                                  |  | Mining               |            |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Consolidated      | 
|                                  |  | RMB000(restated)    |            |  | RMB000                    |  |         | RMB000                            |  |  | RMB000(restated) | 
|ASSETS                            |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|Segment assets                    |  |                      | 98,354,842 |  |                            |  | 558,152 |                                    |  |  | 5,300,584         |  |  |  | 104,213,578 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|Interests in associates           |  |                      | 192,081    |  |                            |  |        |                                    |  |  | 2,432,195         |  |  |  | 2,624,276   | 
|Interests in joint ventures       |  |                      | 998,627    |  |                            |  |        |                                    |  |  |                  |  |  |  | 998,627     | 
|Unallocated corporate assets      |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 14,328,595  | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 122,165,076 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|LIABILITIES                       |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|Segment liabilities               |  |                      | 30,657,045 |  |                            |  | 66,649  |                                    |  |  | 4,326,014         |  |  |  | 35,049,708  | 
|Unallocated corporate liabilities |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 38,395,238  | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |             | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 73,444,946  | 

OTHER INFORMATION



|                                                                                  |  |                                      |            |  |                            |  |        |                                    |  |  |           |   |  |              |       |  |  |  |            | 
|--------------------------------------------------------------------------------- |  | ------------------------------------ | ---------- |  | -------------------------- |  | ------ | ---------------------------------- |  |  | --------- | - |  | ------------ | ----- |  |  |  | ---------- | 
|                                                                                  |  | For the year ended December 31, 2012 |           
|                                                                                  |  | Mining                               |            |  | Coal railwaytransportation |  |        | Methanol,electricityand heatsupply |  |  | Corporate |   |  | Consolidated |      
|                                                                                  |  | RMB000                              |            |  | RMB000                    |  |        | RMB000                            |  |  | RMB000   |   |  | RMB000      |      
|Capital additions (note 1)                                                        |  |                                      | 19,170,069 |  |                            |  | 33,835 |                                    |  |  | 1,605,265 |   |  |              | 70    |  |  |  | 20,809,239 | 
|Investments in associates                                                         |  |                                      | 3,927      |  |                            |  |       |                                    |  |  | 810,000   |   |  |              |      |  |  |  | 813,927    | 
|Amortization of intangible assets                                                 |  |                                      | 1,175,548  |  |                            |  |       |                                    |  |  | 2,047     |   |  |              |      |  |  |  | 1,177,595  | 
|Release of prepaid lease payments                                                 |  |                                      | 9,778      |  |                            |  | 5,372  |                                    |  |  | 3,213     |   |  |              |      |  |  |  | 18,363     | 
|Impairment loss on property, plant and equipment                                  |  |                                      | 226,925    |  |                            |  |       |                                    |  |  |          |   |  |              |      |  |  |  | 226,925    | 
|Impairment loss on intangible assets                                              |  |                                      | 417,214    |  |                            |  |       |                                    |  |  |          |   |  |              |      |  |  |  | 417,214    | 
|Write-off on inventories                                                          |  |                                      | 140,883    |  |                            |  |       |                                    |  |  |          |   |  |              |      |  |  |  | 140,883    | 
|Impairment loss on goodwill                                                       |  |                                      | 17,625     |  |                            |  |       |                                    |  |  |          |   |  |              |      |  |  |  | 17,625     | 
|Depreciation of property, plant and equipment                                     |  |                                      | 2,293,828  |  |                            |  | 78,668 |                                    |  |  | 443,746   |   |  |              | 3,162 |  |  |  | 2,819,404  | 
|Impairment losses charged on (reversed) accounts receivable and other receivables |  |                                      | 7,270      |  |                            |  |       |                                    |  |  | (818      | ) |  |              |      |  |  |  | 6,452      | 
|                                                                                  |  |                                      |            |  |                            |  |        |                                    |  |  |           |   |  |              |       |  |  |  |            | 



|        |  |                                                                                                                                                                                                        
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note 1: |  | Capital additions include those arising from the acquisition of assets under the asset transfer agreement with the Parent Company and its subsidiary and the acquisition of
Gloucester during the year.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



Segment information about these businesses is presented below:

INCOME STATEMENT



|              |  |                                      |            |  |                            |  |         |                                    |  |  |             |  |  |              |   |  |              |  |          |   |  |  |            | 
|------------- |  | ------------------------------------ | ---------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ----------- |  |  | ------------ | - |  | ------------ |  | -------- | - |  |  | ---------- | 
|              |  | For the year ended December 31, 2011 |           
|              |  | Mining                               |            |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Unallocated |  |  | Eliminations |   |  | Consolidated | 
|              |  | RMB000                              |            |  | RMB000                    |  |         | RMB000                            |  |  | RMB000     |  |  | RMB000      |   |  | RMB000      | 
|GROSS REVENUE |  |                                      |            |  |                            |  |         |                                    |  |  |             |  |  |              |   |  |              |  |          |   |  |  |            | 
|External      |  |                                      | 45,181,229 |  |                            |  | 476,852 |                                    |  |  | 1,407,759   |  |  |              |  |  |              |  |         |   |  |  | 47,065,840 | 
|Inter-segment |  |                                      | 287,280    |  |                            |  | 51,705  |                                    |  |  | 256,364     |  |  |              |  |  |              |  | (595,349 | ) |  |  |           | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |             |  |  |              |   |  |              |  |          |   |  |  |            | 
|Total         |  |                                      | 45,468,509 |  |                            |  | 528,557 |                                    |  |  | 1,664,123   |  |  |              |  |  |              |  | (595,349 | ) |  |  | 47,065,840 | 
|              |  |                                      |            |  |                            |  |         |                                    |  |  |             |  |  |              |   |  |              |  |          |   |  |  |            | 

Inter-segment revenue is charged at prices pre-determined by the relevant governmental authority.



|                               |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  
|------------------------------ |  | ------------------------------------ | ---------- |  | -------------------------- |  | --- | ---------------------------------- |  |  | ------------ | - |  | ----------------- | - |  |  |  | ---------- | -
|                               |  | For the year ended December 31, 2011 |           
|                               |  | Mining                               |            |  | Coal railwaytransportation |  |     | Methanol,electricityand heatsupply |  |  | Eliminations |   |  | Consolidated      |  
|                               |  | RMB000(restated)                    |            |  | RMB000                    |  |     | RMB000                            |  |  | RMB000      |   |  | RMB000(restated) |  
|RESULT                         |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  
|Segment results                |  |                                      | 13,215,040 |  |                            |  | 479 |                                    |  |  | (365,011     | ) |  |                   |  |  |  |  | 12,850,508 |  
|                               |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  
|Unallocated corporate expenses |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | (699,291   | )
|Unallocated corporate income   |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | 520,986    |  
|Interest income                |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | 357,708    |  
|Share of profit of associates  |  |                                      | 43,124     |  |                            |  |    |                                    |  |  | 25,815       |   |  |                   |  |  |  |  | 68,939     |  
|Interest expenses              |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | (839,305   | )
|                               |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  
|Profit before income taxes     |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | 12,259,545 |  
|Income taxes                   |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | (3,466,948 | )
|                               |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  
|Profit for the year            |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  | 8,792,597  |  
|                               |  |                                      |            |  |                            |  |     |                                    |  |  |              |   |  |                   |   |  |  |  |            |  



F-49



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



BALANCE SHEET



|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|--------------------------------- |  | -------------------- | ---------- |  | -------------------------- |  | ------- | ---------------------------------- |  |  | ----------------- |  |  |  | ---------- | 
|                                  |  | At December 31, 2011 |           
|                                  |  | Mining               |            |  | Coal railwaytransportation |  |         | Methanol,electricityand heatsupply |  |  | Consolidated      | 
|                                  |  | RMB000(restated)    |            |  | RMB000                    |  |         | RMB000                            |  |  | RMB000(restated) | 
|ASSETS                            |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|Segment assets                    |  |                      | 80,149,706 |  |                            |  | 604,824 |                                    |  |  | 4,474,098         |  |  |  | 85,228,628 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|Interests in associates           |  |                      | 170,226    |  |                            |  |        |                                    |  |  | 1,513,671         |  |  |  | 1,683,897  | 
|Interests in joint ventures       |  |                      | 19,453     |  |                            |  |        |                                    |  |  |                  |  |  |  | 19,453     | 
|Unallocated corporate assets      |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 9,958,172  | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 96,890,150 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|LIABILITIES                       |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|Segment liabilities               |  |                      | 22,948,089 |  |                            |  | 72,476  |                                    |  |  | 2,857,624         |  |  |  | 25,878,189 | 
|Unallocated corporate liabilities |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 27,869,921 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  | 53,748,110 | 
|                                  |  |                      |            |  |                            |  |         |                                    |  |  |                   |  |  |  |            | 

OTHER INFORMATION



|                                                                                  |  |                                      |            |   |                            |  |        |                                    |  |  |             |  |  |           |   |  |              |  |       |  |  |  |            |  
|--------------------------------------------------------------------------------- |  | ------------------------------------ | ---------- | - | -------------------------- |  | ------ | ---------------------------------- |  |  | ----------- |  |  | --------- | - |  | ------------ |  | ----- |  |  |  | ---------- | -
|                                                                                  |  | For the year ended December 31, 2011 |           
|                                                                                  |  | Mining                               |            |   | Coal railwaytransportation |  |        | Methanol,electricityand heatsupply |  |  | Unallocated |  |  | Corporate |   |  | Consolidated | 
|                                                                                  |  | RMB000                              |            |   | RMB000                    |  |        | RMB000                            |  |  | RMB000     |  |  | RMB000   |   |  | RMB000      | 
|Capital additions (note 1)                                                        |  |                                      | 22,736,499 |   |                            |  | 40,890 |                                    |  |  | 555,250     |  |  |           |  |  |              |  | 3,790 |  |  |  | 23,336,429 |  
|Investments in associates                                                         |  |                                      | 540,000    |   |                            |  |       |                                    |  |  |            |  |  |           |  |  |              |  |      |  |  |  | 540,000    |  
|Amortization of intangible assets                                                 |  |                                      | 717,709    |   |                            |  | 252    |                                    |  |  | 2,047       |  |  |           |  |  |              |  |      |  |  |  | 720,008    |  
|Release of prepaid lease payments                                                 |  |                                      | 10,432     |   |                            |  | 5,372  |                                    |  |  | 3,214       |  |  |           |  |  |              |  |      |  |  |  | 19,018     |  
|Impairment loss on property, plant and equipment                                  |  |                                      |           |   |                            |  |       |                                    |  |  | 281,994     |  |  |           |  |  |              |  |      |  |  |  | 281,994    |  
|Depreciation of property, plant and equipment                                     |  |                                      | 1,711,257  |   |                            |  | 73,885 |                                    |  |  | 477,872     |  |  |           |  |  |              |  | 3,003 |  |  |  | 2,266,017  |  
|Impairment losses (reversed) charged on accounts receivable and other receivables |  |                                      | (789       | ) |                            |  |       |                                    |  |  | 688         |  |  |           |  |  |              |  |      |  |  |  | (101       | )
|                                                                                  |  |                                      |            |   |                            |  |        |                                    |  |  |             |  |  |           |   |  |              |  |       |  |  |  |            |  



|        |  |                                                                                                                                           
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------
|Note 1: |  | Capital additions include those arising from the acquisition of additional interests in joint operations and subsidiaries during the year.



F-50



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

6. SEGMENT INFORMATIONContinued



GEOGRAPHICAL INFORMATION

The following table sets out the geographical information. The geographical location of sales to external customers is based on the location at which the
services were provided or the goods delivered. The geographical location of the specified non-current assets is based on the physical location of the asset, in the case of property, plant and equipment, the location of the operation to which they
are allocated, in the case of intangible assets and goodwill, and the location of operations, in the case of interests in associates and joint ventures.

The geographical information of revenue are as follows:



|                            |  |                                 |            |  |         |  |            |         |  |  |            | 
|--------------------------- |  | ------------------------------- | ---------- |  | ------- |  | ---------- | ------- |  |  | ---------- | 
|                            |  | Revenue from external customers |           
|                            |  | For the year ended December 31, |           
|                            |  | 2013                            |            |  | 2012    |  |            | 2011    | 
|                            |  | RMB000                         |            |  | RMB000 |  |            | RMB000 | 
|The PRC (place of domicile) |  |                                 | 47,299,887 |  |         |  | 48,518,837 |         |  |  | 38,301,175 | 
|Australia                   |  |                                 | 2,130,591  |  |         |  | 2,297,615  |         |  |  | 255,206    | 
|Others                      |  |                                 | 6,971,348  |  |         |  | 7,329,732  |         |  |  | 8,509,459  | 
|                            |  |                                 |            |  |         |  |            |         |  |  |            | 
|Total                       |  |                                 | 56,401,826 |  |         |  | 58,146,184 |         |  |  | 47,065,840 | 
|                            |  |                                 |            |  |         |  |            |         |  |  |            | 

The geographical information of specified non-current assets are as follows:



|                            |  |                              |            |  |                   |  |            |         |  |  |            | 
|--------------------------- |  | ---------------------------- | ---------- |  | ----------------- |  | ---------- | ------- |  |  | ---------- | 
|                            |  | Specified non-current assets |           
|                            |  | At December 31,              |           
|                            |  | 2013                         |            |  | 2012              |  |            | 2011    | 
|                            |  | RMB000                      |            |  | RMB000(restated) |  |            | RMB000 | 
|The PRC (place of domicile) |  |                              | 52,741,341 |  |                   |  | 36,991,705 |         |  |  | 31,130,104 | 
|Australia                   |  |                              | 32,090,208 |  |                   |  | 41,205,313 |         |  |  | 28,986,924 | 
|Canada                      |  |                              | 1,691,407  |  |                   |  | 1,832,719  |         |  |  | 1,645,227  | 
|                            |  |                              |            |  |                   |  |            |         |  |  |            | 
|Total non-current assets    |  |                              | 86,522,956 |  |                   |  | 80,029,737 |         |  |  | 61,762,255 | 
|                            |  |                              |            |  |                   |  |            |         |  |  |            | 

For the year ended December 31, 2013, the revenue from mining segment amounted to RMB54,444,843,000
(2012: RMB56,200,600,000; 2011: RMB45,181,229,000) which including sales to the Groups largest customer located in the PRC of approximately RMB3,243,219,000 (2012: RMB3,651,630,000; 2011: RMB3,854,540,000). As at December 31, 2013,
accounts receivable from this customer accounted for approximately 10.29% (2012: 0%; 2011: 0%) of the Groups total accounts receivable.

7. SALES OF COAL AND TRANSPORTATION COSTS OF COAL



|                                                   |  |                         |            |  |         |  |            |         |  |  |            | 
|-------------------------------------------------- |  | ----------------------- | ---------- |  | ------- |  | ---------- | ------- |  |  | ---------- | 
|                                                   |  | Year ended December 31, |           
|                                                   |  | 2013                    |            |  | 2012    |  |            | 2011    | 
|                                                   |  | RMB000                 |            |  | RMB000 |  |            | RMB000 | 
|Coal sold in the PRC                               |  |                         | 45,342,904 |  |         |  | 46,573,253 |         |  |  | 36,416,565 | 
|Coal sold outside the PRC                          |  |                         | 9,101,939  |  |         |  | 9,627,347  |         |  |  | 8,764,664  | 
|                                                   |  |                         |            |  |         |  |            |         |  |  |            | 
|Total coal sold                                    |  |                         | 54,444,843 |  |         |  | 56,200,600 |         |  |  | 45,181,229 | 
|                                                   |  |                         |            |  |         |  |            |         |  |  |            | 
|Transportation costs for coal sold in the PRC      |  |                         | 444,306    |  |         |  | 281,816    |         |  |  | 311,708    | 
|Transportation costs for coal sold outside the PRC |  |                         | 1,579,890  |  |         |  | 1,822,409  |         |  |  | 936,560    | 
|                                                   |  |                         |            |  |         |  |            |         |  |  |            | 
|Total transportation costs                         |  |                         | 2,024,196  |  |         |  | 2,104,225  |         |  |  | 1,248,268  | 
|                                                   |  |                         |            |  |         |  |            |         |  |  |            | 



F-51



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



8. COST OF SALES AND SERVICE PROVIDED



|                                                                     |  |                         |            |  |                   |  |            |                   |  |  |            | 
|-------------------------------------------------------------------- |  | ----------------------- | ---------- |  | ----------------- |  | ---------- | ----------------- |  |  | ---------- | 
|                                                                     |  | Year ended December 31, |           
|                                                                     |  | 2013                    |            |  | 2012              |  |            | 2011              | 
|                                                                     |  | RMB000                 |            |  | RMB000(restated) |  |            | RMB000(restated) | 
|Materials                                                            |  |                         | 3,022,210  |  |                   |  | 3,162,130  |                   |  |  | 2,541,192  | 
|Wages and employee benefits                                          |  |                         | 6,724,456  |  |                   |  | 7,282,018  |                   |  |  | 5,846,108  | 
|Electricity                                                          |  |                         | 764,353    |  |                   |  | 699,648    |                   |  |  | 520,890    | 
|Depreciation                                                         |  |                         | 2,404,252  |  |                   |  | 2,057,092  |                   |  |  | 1,398,711  | 
|Land subsidence, restoration, rehabilitation and environmental costs |  |                         | 1,440,621  |  |                   |  | 1,781,267  |                   |  |  | 1,720,740  | 
|Environmental management expenses                                    |  |                         | 128,784    |  |                   |  | 129,235    |                   |  |  |           | 
|Annual fee and amortization of mining rights (note 23)               |  |                         | 1,304,972  |  |                   |  | 1,305,410  |                   |  |  | 848,615    | 
|Transportation costs                                                 |  |                         | 15,965     |  |                   |  | 80,093     |                   |  |  | 73,560     | 
|Cost of traded coal                                                  |  |                         | 22,834,366 |  |                   |  | 21,522,897 |                   |  |  | 9,548,869  | 
|Business tax and surcharges                                          |  |                         | 541,676    |  |                   |  | 599,784    |                   |  |  | 579,782    | 
|Others                                                               |  |                         | 3,330,183  |  |                   |  | 3,529,414  |                   |  |  | 2,908,268  | 
|                                                                     |  |                         |            |  |                   |  |            |                   |  |  |            | 
|                                                                     |  |                         | 42,511,838 |  |                   |  | 42,148,988 |                   |  |  | 25,986,735 | 
|                                                                     |  |                         |            |  |                   |  |            |                   |  |  |            | 

9. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES



|                                                  |  |                         |            |  |         |  |           |         |  |  |           | 
|------------------------------------------------- |  | ----------------------- | ---------- |  | ------- |  | --------- | ------- |  |  | --------- | 
|                                                  |  | Year ended December 31, |           
|                                                  |  | 2013                    |            |  | 2012    |  |           | 2011    | 
|                                                  |  | RMB000                 |            |  | RMB000 |  |           | RMB000 | 
|Wages and employee benefits                       |  |                         | 1,888,932  |  |         |  | 1,749,759 |         |  |  | 1,703,713 | 
|Additional medical insurance                      |  |                         | 5,141      |  |         |  | 80,855    |         |  |  | 78,285    | 
|Staff training costs                              |  |                         | 4,558      |  |         |  | 7,630     |         |  |  | 53,682    | 
|Depreciation                                      |  |                         | 417,204    |  |         |  | 343,133   |         |  |  | 230,542   | 
|Distribution charges                              |  |                         | 1,448,114  |  |         |  | 1,292,216 |         |  |  | 1,078,107 | 
|Resource compensation fees (note)                 |  |                         | 209,493    |  |         |  | 248,377   |         |  |  | 263,238   | 
|Repairs and maintenance                           |  |                         | 354,071    |  |         |  | 693,380   |         |  |  | 609,211   | 
|Research and development                          |  |                         | 45,110     |  |         |  | 62,406    |         |  |  | 119,234   | 
|Freight charges                                   |  |                         | 41,185     |  |         |  | 34,800    |         |  |  | 29,246    | 
|Impairment loss on property, plant and equipment  |  |                         |           |  |         |  | 226,925   |         |  |  | 281,994   | 
|Loss on disposal of property, plant and equipment |  |                         |           |  |         |  |          |         |  |  | 108,627   | 
|Provision for bad debt                            |  |                         | 23,931     |  |         |  | 10,627    |         |  |  | 1,195     | 
|Impairment loss on intangible assets              |  |                         | 2,052,238  |  |         |  | 417,214   |         |  |  |          | 
|Impairment loss on goodwill                       |  |                         |           |  |         |  | 17,625    |         |  |  |          | 
|Impairment loss on inventories                    |  |                         | 58,274     |  |         |  | 140,883   |         |  |  |          | 
|Legal and professional fees                       |  |                         | 129,496    |  |         |  | 269,155   |         |  |  | 94,148    | 
|Social welfare and insurance                      |  |                         | 51,255     |  |         |  | 207,150   |         |  |  | 173,349   | 
|Utilities relating to administrative buildings    |  |                         | 80,042     |  |         |  | 139,942   |         |  |  | 175,209   | 
|Environmental protection                          |  |                         | 5,552      |  |         |  | 46,022    |         |  |  | 83,690    | 
|Travelling, entertainment and promotion           |  |                         | 102,670    |  |         |  | 169,062   |         |  |  | 188,087   | 
|Exchange loss, net                                |  |                         | 1,686,001  |  |         |  |          |         |  |  |          | 
|Coal price adjustment fund                        |  |                         | 424,017    |  |         |  | 403,632   |         |  |  | 367,038   | 
|Bonus payments                                    |  |                         | 17,154     |  |         |  | 11,050    |         |  |  | 6,409     | 
|Other sundry taxes                                |  |                         | 352,601    |  |         |  | 397,853   |         |  |  | 253,583   | 
|Others                                            |  |                         | 983,674    |  |         |  | 1,017,940 |         |  |  | 671,616   | 
|                                                  |  |                         |            |  |         |  |           |         |  |  |           | 
|                                                  |  |                         | 10,380,713 |  |         |  | 7,987,636 |         |  |  | 6,570,203 | 
|                                                  |  |                         |            |  |         |  |           |         |  |  |           | 



|Note: | In accordance with the relevant regulations, the Group pays resource compensation fees (effectively a government levy) to the Ministry of Geology and Mineral Resources
at the rate of 1% on the sales value of raw coal.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-52



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



10. OTHER INCOME



|                                                   |  |                         |           |  |         |  |           |         |  |  |           | 
|-------------------------------------------------- |  | ----------------------- | --------- |  | ------- |  | --------- | ------- |  |  | --------- | 
|                                                   |  | Year ended December 31, |          
|                                                   |  | 2013                    |           |  | 2012    |  |           | 2011    | 
|                                                   |  | RMB000                 |           |  | RMB000 |  |           | RMB000 | 
|Dividend income                                    |  |                         | 71,395    |  |         |  | 3,702     |         |  |  | 2,433     | 
|Gain on sales of auxiliary materials               |  |                         | 37,658    |  |         |  | 32,300    |         |  |  | 20,751    | 
|Government grants                                  |  |                         | 169,957   |  |         |  | 72,867    |         |  |  | 29,431    | 
|Interest income                                    |  |                         | 489,348   |  |         |  | 722,336   |         |  |  | 357,708   | 
|Exchange gain, net                                 |  |                         |          |  |         |  | 714,166   |         |  |  | 518,553   | 
|Bargain purchase (note 45)                         |  |                         |          |  |         |  | 1,269,269 |         |  |  |          | 
|Gain on disposals of property, plant and equipment |  |                         | 14,973    |  |         |  | 9,862     |         |  |  |          | 
|Others                                             |  |                         | 237,246   |  |         |  | 105,943   |         |  |  | 146,889   | 
|                                                   |  |                         |           |  |         |  |           |         |  |  |           | 
|                                                   |  |                         | 1,020,577 |  |         |  | 2,930,445 |         |  |  | 1,075,765 | 
|                                                   |  |                         |           |  |         |  |           |         |  |  |           | 

The above dividend income is from listed investments.

11. INTEREST EXPENSES



|                                                                  |  |                         |           |   |         |  |           |         |  |  |         | 
|----------------------------------------------------------------- |  | ----------------------- | --------- | - | ------- |  | --------- | ------- |  |  | ------- | 
|                                                                  |  | Year ended December 31, |          
|                                                                  |  | 2013                    |           |   | 2012    |  |           | 2011    | 
|                                                                  |  | RMB000                 |           |   | RMB000 |  |           | RMB000 | 
|Interest expenses on:                                             |  |                         |           |   |         |  |           |         |  |  |         | 
|- bank and other borrowings wholly repayable within 5 years       |  |                         | 1,565,693 |   |         |  | 1,453,459 |         |  |  | 804,700 | 
|- bank and other borrowings not wholly repayable within 5 years   |  |                         | 418,606   |   |         |  | 88,550    |         |  |  | 9,675   | 
|- bills receivable discounted without recourse                    |  |                         | 9,341     |   |         |  | 2,367     |         |  |  | 24,930  | 
|                                                                  |  |                         |           |   |         |  |           |         |  |  |         | 
|                                                                  |  |                         | 1,993,640 |   |         |  | 1,544,376 |         |  |  | 839,305 | 
|Less: interest expenses capitalized into construction in progress |  |                         | (227,863  | ) |         |  | (95,697   | )       |  |  |        | 
|                                                                  |  |                         |           |   |         |  |           |         |  |  |         | 
|                                                                  |  |                         | 1,765,777 |   |         |  | 1,448,679 |         |  |  | 839,305 | 
|                                                                  |  |                         |           |   |         |  |           |         |  |  |         | 

12. INCOME TAXES



|                                       |  |                         |            |   |            |  |            |            |  |  |           | 
|-------------------------------------- |  | ----------------------- | ---------- | - | ---------- |  | ---------- | ---------- |  |  | --------- | 
|                                       |  | Year ended December 31, |           
|                                       |  | 2013                    |            |   | 2012       |  |            | 2011       | 
|                                       |  | RMB000                 |            |   | RMB000    |  |            | RMB000    | 
|                                       |  |                         |            |   | (restated) |  |            | (restated) | 
|Income taxes:                          |  |                         |            |   |            |  |            |            |  |  |           | 
|Current taxes                          |  |                         | 1,991,862  |   |            |  | 1,328,624  |            |  |  | 3,176,627 | 
|Under provision in prior years         |  |                         | (286,292   | ) |            |  | 142,957    |            |  |  | 20,174    | 
|                                       |  |                         |            |   |            |  |            |            |  |  |           | 
|                                       |  |                         | 1,705,570  |   |            |  | 1,471,581  |            |  |  | 3,196,801 | 
|Deferred taxes (note 39)               |  |                         |            |   |            |  |            |            |  |  |           | 
|Australian Minerals Resources Rent Tax |  |                         | 141,182    |   |            |  | (1,550,277 | )          |  |  |          | 
|Others                                 |  |                         | (2,241,567 | ) |            |  | 114,885    |            |  |  | 270,147   | 
|                                       |  |                         |            |   |            |  |            |            |  |  |           | 
|                                       |  |                         | (394,815   | ) |            |  | 36,189     |            |  |  | 3,466,948 | 
|                                       |  |                         |            |   |            |  |            |            |  |  |           | 

Except An Yuan Coal Mine and Xintai, the Company and its subsidiaries in the PRC are subject to a standard income tax
rate of 25% on its taxable income (2012: 25%; 2011: 25%).

Taxation arising in other jurisdictions is calculated at the rates prevailing in
the relevant jurisdictions.



F-53



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

12. INCOME TAXESContinued



Note: The Australian Minerals Resources Rent Tax (MRRT) legislation was enacted on
19 March 2012 and effective from 1 July 2012. According to the relevant provisions of the MRRT tax laws, subsidiaries in Australia are required to determine the starting base allowance on the balance sheet. Book value or market value
approach can be selected in calculating the starting base and subsequently amortize within the prescribed useful life. Market value approach was selected for mines in Australia. Under the market value approach, base value is determined based on
market value of the coal mines on 1 May 2010 and amortize based on the shorter of the life of mining project, mining rights and mining production.

During 2013, the Australian Government released an exposure draft legislation which proposed to repeal the MRRT legislation. At December 31, 2013, the Australian Government had not passed the repeal
legislation.

The total charge for the year can be reconciled to the profit per the consolidated income statement as follows:



|                                                               |  |                         |          |   |            |  |            |            |  |  |           |  
|-------------------------------------------------------------- |  | ----------------------- | -------- | - | ---------- |  | ---------- | ---------- |  |  | --------- | -
|                                                               |  | Year ended December 31, |         
|                                                               |  | 2013                    |          |   | 2012       |  |            | 2011       | 
|                                                               |  | RMB000                 |          |   | RMB000    |  |            | RMB000    | 
|                                                               |  |                         |          |   | (restated) |  |            | (restated) | 
|Standard income tax rate in the PRC                            |  |                         | 25       | % |            |  | 25         | %          |  |  | 25        | %
|Standard income tax rate applied to income before income taxes |  |                         | (145,067 | ) |            |  | 1,517,594  |            |  |  | 3,064,886 |  
|                                                               |  |                         |         
|Reconciling items:                                             |  |                         |          |   |            |  |            |            |  |  |           |  
|Effect of (income) expense exempt from taxation                |  |                         | (83,106  | ) |            |  | (668,039   | )          |  |  | 33,520    |  
|Deemed interest income from subsidiaries subject to tax        |  |                         | 210,978  |   |            |  | 142,361    |            |  |  | 63,058    |  
|Tax effect of tax losses not recognized                        |  |                         | 210,460  |   |            |  | 202,744    |            |  |  | 217,791   |  
|(Over) Under provision in prior years                          |  |                         | (286,293 | ) |            |  | 142,957    |            |  |  | 20,174    |  
|MRRT                                                           |  |                         | 96,223   |   |            |  | (1,085,194 | )          |  |  |          |  
|Utilization of unrecognized tax losses in prior years          |  |                         | (62,637  | ) |            |  | (20,700    | )          |  |  | (83,336   | )
|Effect of tax rate differences in other taxation jurisdictions |  |                         | (383,370 | ) |            |  | 17,768     |            |  |  | 151,227   |  
|Others                                                         |  |                         | 47,997   |   |            |  | (213,302   | )          |  |  | (372      | )
|                                                               |  |                         |          |   |            |  |            |            |  |  |           |  
|Income taxes                                                   |  |                         | (394,815 | ) |            |  | 36,189     |            |  |  | 3,466,948 |  
|                                                               |  |                         |          |   |            |  |            |            |  |  |           |  
|Effective income tax rate                                      |  |                         | 68       | % |            |  | 0.6        | %          |  |  | 28        | %
|                                                               |  |                         |          |   |            |  |            |            |  |  |           |  



F-54



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



13. (LOSS) PROFIT BEFORE INCOME TAXES



|                                                                                     |  |                         |            |   |         |  |            |         |  |  |            |  
|------------------------------------------------------------------------------------ |  | ----------------------- | ---------- | - | ------- |  | ---------- | ------- |  |  | ---------- | -
|                                                                                     |  | Year ended December 31, |           
|                                                                                     |  | 2013                    |            |   | 2012    |  |            | 2011    | 
|                                                                                     |  | RMB000                 |            |   | RMB000 |  |            | RMB000 | 
|(Loss) Profit before income taxes has been arrived at after charging:                |  |                         |            |   |         |  |            |         |  |  |            |  
|Amortization of intangible assets                                                    |  |                         | 1,325,078  |   |         |  | 1,177,595  |         |  |  | 720,008    |  
|Depreciation of property, plant and equipment                                        |  |                         |            |   |         |  |            |         |  |  |            |  
|- under finance leases                                                               |  |                         | 32,129     |   |         |  | 8,180      |         |  |  |           |  
|- self-owned                                                                         |  |                         | 3,092,824  |   |         |  | 2,811,224  |         |  |  | 2,266,017  |  
|                                                                                     |  |                         |            |   |         |  |            |         |  |  |            |  
|Total depreciation and amortization                                                  |  |                         | 4,450,031  |   |         |  | 3,996,999  |         |  |  | 2,986,025  |  
|                                                                                     |  |                         |            |   |         |  |            |         |  |  |            |  
|Release of prepaid lease payments                                                    |  |                         | 18,728     |   |         |  | 18,363     |         |  |  | 19,018     |  
|Impairment loss recognised in respect of:                                            |  |                         |            |   |         |  |            |         |  |  |            |  
|- Property, plant and equipment                                                      |  |                         |           |   |         |  | 226,925    |         |  |  | 281,994    |  
|- Intangible assets                                                                  |  |                         | 2,052,238  |   |         |  | 417,214    |         |  |  |           |  
|- Goodwill                                                                           |  |                         |           |   |         |  | 17,625     |         |  |  |           |  
|- Inventories                                                                        |  |                         | 58,274     |   |         |  | 140,883    |         |  |  |           |  
|Auditors remuneration                                                               |  |                         | 23,771     |   |         |  | 19,916     |         |  |  | 18,112     |  
|Staff costs, including directors and supervisors emoluments                        |  |                         | 9,811,721  |   |         |  | 10,022,134 |         |  |  | 8,222,047  |  
|Retirement benefit scheme contributions (included in staff costs above)              |  |                         | 2,153,433  |   |         |  | 3,657,504  |         |  |  | 1,699,443  |  
|Cost of inventories                                                                  |  |                         | 26,437,983 |   |         |  | 25,425,263 |         |  |  | 12,723,350 |  
|Research and development costs                                                       |  |                         | 45,110     |   |         |  | 62,406     |         |  |  | 119,234    |  
|Operating lease charges in respect of leased premises                                |  |                         | 65,043     |   |         |  | 72,400     |         |  |  | 31,960     |  
|and crediting:                                                                       |  |                         |            |   |         |  |            |         |  |  |            |  
|(Gain) Loss on disposal of property, plant and equipment                             |  |                         | (14,973    | ) |         |  | (9,862     | )       |  |  | 108,627    |  
|Exchange loss (gains), net                                                           |  |                         | 1,686,001  |   |         |  | (714,166   | )       |  |  | (518,553   | )
|(Reversal) Provision of impairment loss on accounts receivable and other receivables |  |                         | (742       | ) |         |  | 6,452      |         |  |  | (101       | )
|                                                                                     |  |                         |            |   |         |  |            |         |  |  |            |  



F-55



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



14. DIRECTORS AND SUPERVISORS REMUNERATION AND FIVE HIGHEST PAID INDIVIDUALS

(a) Directors and supervisors emoluments

Details of the directors and supervisors emoluments are as follows:



|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|----------------------------------- |  | ------------------------------------ | --- |  | -------------------------------------------- |  | ----- | -------------------------------------- |  |  | ------- |  |  |  | ----- | 
|                                    |  | For the year ended December 31, 2013 |    
|                                    |  | Fees                                 |     |  | Salaries, allowanceand other
benefitsin kind |  |       | Retirementbenefit 
schemecontributions |  |  | Total   | 
|                                    |  | RMB000                              |     |  | RMB000                                      |  |       | RMB000                                |  |  | RMB000 | 
|Independent non-executive directors |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Wang Xiaojun                        |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Wang Xianzheng                      |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Cheng Faguang                       |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Xue Youzhi                          |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      | 520 |  |                                              |  |      |                                        |  |  |        |  |  |  | 520   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Executive directors                 |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Li Xiyong                           |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Xinwen                        |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wang Xin                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Yingmin                       |  |                                      |    |  |                                              |  | 512   |                                        |  |  | 100     |  |  |  | 612   | 
|Li Weimin                           |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Shi Xuerang                         |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wu Yuxiang                          |  |                                      |    |  |                                              |  | 468   |                                        |  |  | 91      |  |  |  | 559   | 
|Zhang Baocai                        |  |                                      |    |  |                                              |  | 469   |                                        |  |  | 92      |  |  |  | 561   | 
|Dong Yunqing                        |  |                                      |    |  |                                              |  | 470   |                                        |  |  | 92      |  |  |  | 562   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 1,919 |                                        |  |  | 375     |  |  |  | 2,294 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Supervisors                         |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Song Guo                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Shengdong                     |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhou Shoucheng                      |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhen Ailan                          |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wei Huanmin                         |  |                                      |    |  |                                              |  | 470   |                                        |  |  | 92      |  |  |  | 562   | 
|Xu Bentai                           |  |                                      |    |  |                                              |  | 461   |                                        |  |  | 90      |  |  |  | 551   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 931   |                                        |  |  | 182     |  |  |  | 1,113 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Other management team               |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Liu Chun                            |  |                                      |    |  |                                              |  | 490   |                                        |  |  | 96      |  |  |  | 586   | 
|He Ye                               |  |                                      |    |  |                                              |  | 417   |                                        |  |  | 81      |  |  |  | 498   | 
|Tian Fengze                         |  |                                      |    |  |                                              |  | 486   |                                        |  |  | 95      |  |  |  | 581   | 
|Shi Chengzhong                      |  |                                      |    |  |                                              |  | 481   |                                        |  |  | 94      |  |  |  | 575   | 
|Ni Xinghua                          |  |                                      |    |  |                                              |  | 497   |                                        |  |  | 97      |  |  |  | 594   | 
|Lai Cunliang                        |  |                                      |    |  |                                              |  | 766   |                                        |  |  |        |  |  |  | 766   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 3,137 |                                        |  |  | 463     |  |  |  | 3,600 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 



F-56



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



14. DIRECTORS AND SUPERVISORS REMUNERATION AND FIVE HIGHEST PAID
INDIVIDUALSContinued

(a) Directors and supervisors emolumentscontinued



Details of the directors and supervisors emoluments are as
follows:



|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|----------------------------------- |  | ------------------------------------ | --- |  | -------------------------------------------- |  | ----- | -------------------------------------- |  |  | ------- |  |  |  | ----- | 
|                                    |  | For the year ended December 31, 2012 |    
|                                    |  | Fees                                 |     |  | Salaries, allowanceand other
benefitsin kind |  |       | Retirementbenefit 
schemecontributions |  |  | Total   | 
|                                    |  | RMB000                              |     |  | RMB000                                      |  |       | RMB000                                |  |  | RMB000 | 
|Independent non-executive directors |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Wang Xiaojun                        |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Wang Xianzheng                      |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Cheng Faguang                       |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|Xue Youzhi                          |  |                                      | 130 |  |                                              |  |      |                                        |  |  |        |  |  |  | 130   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      | 520 |  |                                              |  |      |                                        |  |  |        |  |  |  | 520   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Executive directors                 |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Wang Xin                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Yingmin                       |  |                                      |    |  |                                              |  | 728   |                                        |  |  | 146     |  |  |  | 874   | 
|Li Weimin                           |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Shi Xuerang                         |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wu Yuxiang                          |  |                                      |    |  |                                              |  | 505   |                                        |  |  | 101     |  |  |  | 606   | 
|Zhang Baocai                        |  |                                      |    |  |                                              |  | 517   |                                        |  |  | 103     |  |  |  | 620   | 
|Dong Yunqing                        |  |                                      |    |  |                                              |  | 520   |                                        |  |  | 104     |  |  |  | 624   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 2,270 |                                        |  |  | 454     |  |  |  | 2,724 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Supervisors                         |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Song Guo                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Shengdong                     |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhou Shoucheng                      |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhen Ailan                          |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wei Huanmin                         |  |                                      |    |  |                                              |  | 516   |                                        |  |  | 103     |  |  |  | 619   | 
|Xu Bentai                           |  |                                      |    |  |                                              |  | 506   |                                        |  |  | 101     |  |  |  | 607   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 1,022 |                                        |  |  | 204     |  |  |  | 1,226 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Other management team               |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Liu Chun                            |  |                                      |    |  |                                              |  | 564   |                                        |  |  | 113     |  |  |  | 677   | 
|He Ye                               |  |                                      |    |  |                                              |  | 720   |                                        |  |  | 144     |  |  |  | 864   | 
|Tian Fengze                         |  |                                      |    |  |                                              |  | 529   |                                        |  |  | 106     |  |  |  | 635   | 
|Shi Chengzhong                      |  |                                      |    |  |                                              |  | 543   |                                        |  |  | 109     |  |  |  | 652   | 
|Ni Xinghua                          |  |                                      |    |  |                                              |  | 553   |                                        |  |  | 111     |  |  |  | 664   | 
|Lai Cunliang                        |  |                                      |    |  |                                              |  | 690   |                                        |  |  |        |  |  |  | 690   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 3,599 |                                        |  |  | 583     |  |  |  | 4,182 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 



F-57



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



14. DIRECTORS AND SUPERVISORS REMUNERATION AND FIVE HIGHEST PAID
INDIVIDUALSContinued

(a) Directors and supervisors emolumentscontinued



Details of the directors and supervisors emoluments are as
follows:



|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|----------------------------------- |  | ------------------------------------ | --- |  | -------------------------------------------- |  | ----- | -------------------------------------- |  |  | ------- |  |  |  | ----- | 
|                                    |  | For the year ended December 31, 2011 |    
|                                    |  | Fees                                 |     |  | Salaries, allowanceand other
benefitsin kind |  |       | Retirementbenefit 
schemecontributions |  |  | Total   | 
|                                    |  | RMB000                              |     |  | RMB000                                      |  |       | RMB000                                |  |  | RMB000 | 
|Independent non-executive directors |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Pu Hongjiu                          |  |                                      | 49  |  |                                              |  |      |                                        |  |  |        |  |  |  | 49    | 
|Di Xigui                            |  |                                      | 49  |  |                                              |  |      |                                        |  |  |        |  |  |  | 49    | 
|Li Weian                            |  |                                      | 49  |  |                                              |  |      |                                        |  |  |        |  |  |  | 49    | 
|Wang Junyan                         |  |                                      | 49  |  |                                              |  |      |                                        |  |  |        |  |  |  | 49    | 
|Wang Xiaojun                        |  |                                      | 72  |  |                                              |  |      |                                        |  |  |        |  |  |  | 72    | 
|Wang Xianzheng                      |  |                                      | 72  |  |                                              |  |      |                                        |  |  |        |  |  |  | 72    | 
|Cheng Faguang                       |  |                                      | 72  |  |                                              |  |      |                                        |  |  |        |  |  |  | 72    | 
|Xue Youzhi                          |  |                                      | 72  |  |                                              |  |      |                                        |  |  |        |  |  |  | 72    | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      | 484 |  |                                              |  |      |                                        |  |  |        |  |  |  | 484   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Executive directors                 |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Wang Xin                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Yingmin                       |  |                                      |    |  |                                              |  | 169   |                                        |  |  | 34      |  |  |  | 203   | 
|Li Weimin                           |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Shi Xuerang                         |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Chen Changchun                      |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wu Yuxiang                          |  |                                      |    |  |                                              |  | 381   |                                        |  |  | 76      |  |  |  | 457   | 
|Wang Xinkun                         |  |                                      |    |  |                                              |  | 329   |                                        |  |  | 66      |  |  |  | 395   | 
|Zhang Baocai                        |  |                                      |    |  |                                              |  | 390   |                                        |  |  | 78      |  |  |  | 468   | 
|Dong Yunqing                        |  |                                      |    |  |                                              |  | 396   |                                        |  |  | 79      |  |  |  | 475   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 1,665 |                                        |  |  | 333     |  |  |  | 1,998 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Supervisors                         |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Song Guo                            |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhang Shengdong                     |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhou Shoucheng                      |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Zhen Ailan                          |  |                                      |    |  |                                              |  |      |                                        |  |  |        |  |  |  |      | 
|Wei Huanmin                         |  |                                      |    |  |                                              |  | 390   |                                        |  |  | 78      |  |  |  | 468   | 
|Xu Bentai                           |  |                                      |    |  |                                              |  | 430   |                                        |  |  | 86      |  |  |  | 516   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 820   |                                        |  |  | 164     |  |  |  | 984   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Other management team               |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|Jin Tai                             |  |                                      |    |  |                                              |  | 169   |                                        |  |  | 34      |  |  |  | 203   | 
|Liu Chun                            |  |                                      |    |  |                                              |  | 13    |                                        |  |  | 3       |  |  |  | 16    | 
|He Ye                               |  |                                      |    |  |                                              |  | 169   |                                        |  |  | 34      |  |  |  | 203   | 
|Tian Fengze                         |  |                                      |    |  |                                              |  | 428   |                                        |  |  | 86      |  |  |  | 514   | 
|Shi Chengzhong                      |  |                                      |    |  |                                              |  | 462   |                                        |  |  | 92      |  |  |  | 554   | 
|Ni Xinghua                          |  |                                      |    |  |                                              |  | 438   |                                        |  |  | 88      |  |  |  | 526   | 
|Lai Cunliang                        |  |                                      |    |  |                                              |  | 700   |                                        |  |  |        |  |  |  | 700   | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 
|                                    |  |                                      |    |  |                                              |  | 2,379 |                                        |  |  | 337     |  |  |  | 2,716 | 
|                                    |  |                                      |     |  |                                              |  |       |                                        |  |  |         |  |  |  |       | 

No directors waived any of their emoluments in each of the year ended December 31, 2013, 2012 and 2011.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



14. DIRECTORS AND SUPERVISORS REMUNERATION AND FIVE HIGHEST PAID
INDIVIDUALSContinued



(b)
Employees emoluments

The five highest paid individuals in the Group included no director for the year ended December 31,
2013 (2012: nil; 2011: nil). The emoluments of the five highest paid individuals (2012: five; 2011: five) were stated as follows:



|                                               |  |                         |        |  |         |  |        |         |  |  |        | 
|---------------------------------------------- |  | ----------------------- | ------ |  | ------- |  | ------ | ------- |  |  | ------ | 
|                                               |  | Year ended December 31, |       
|                                               |  | 2013                    |        |  | 2012    |  |        | 2011    | 
|                                               |  | RMB000                 |        |  | RMB000 |  |        | RMB000 | 
|Salaries, allowance and other benefits in kind |  |                         | 19,496 |  |         |  | 18,877 |         |  |  | 19,282 | 
|Retirement benefit scheme contributions        |  |                         | 453    |  |         |  | 538    |         |  |  | 74     | 
|Discretionary bonuses                          |  |                         | 2,820  |  |         |  | 5,827  |         |  |  | 1,725  | 
|                                               |  |                         |        |  |         |  |        |         |  |  |        | 
|                                               |  |                         | 22,769 |  |         |  | 25,242 |         |  |  | 21,081 | 
|                                               |  |                         |        |  |         |  |        |         |  |  |        | 

Their emoluments were within the following bands:



|                               |  |                         |   |  |                 |  |   |                 |  |  |   | 
|------------------------------ |  | ----------------------- | - |  | --------------- |  | - | --------------- |  |  | - | 
|                               |  | Year ended December 31, |  
|                               |  | 2013                    |   |  | 2012            |  |   | 2011            | 
|                               |  | No. ofemployees         |   |  | No. ofemployees |  |   | No. ofemployees | 
|Nil to HK$1,000,000            |  |                         |  |  |                 |  |  |                 |  |  |  | 
|HK$1,000,001 to HK$1,500,000   |  |                         |  |  |                 |  |  |                 |  |  |  | 
|HK$2,500,001 to HK$3,000,000   |  |                         | 1 |  |                 |  |  |                 |  |  |  | 
|HK$3,500,001 to HK$4,000,000   |  |                         | 1 |  |                 |  | 2 |                 |  |  | 1 | 
|HK$4,000,001 to HK$4,500,000   |  |                         |  |  |                 |  |  |                 |  |  | 2 | 
|HK$4,500,001 to HK$5,000,000   |  |                         | 1 |  |                 |  | 1 |                 |  |  |  | 
|HK$5,000,001 to HK$5,500,000   |  |                         |  |  |                 |  |  |                 |  |  | 1 | 
|HK$5,500,001 to HK$6,000,000   |  |                         |  |  |                 |  | 1 |                 |  |  |  | 
|HK$6,000,001 to HK$6,500,000   |  |                         | 1 |  |                 |  |  |                 |  |  |  | 
|HK$8,000,001 to HK$8,500,000   |  |                         |  |  |                 |  |  |                 |  |  | 1 | 
|HK$11,000,001 to HK$11,500,000 |  |                         | 1 |  |                 |  |  |                 |  |  |  | 
|HK$12,000,001 to HK$12,500,000 |  |                         |  |  |                 |  | 1 |                 |  |  |  | 
|                               |  |                         |   |  |                 |  |   |                 |  |  |   | 

15. DIVIDEND RECOGNIZED AS DISTRIBUTION DURING THE YEAR



|                                                                                                                                     |  |                         |           |  |         |  |           |         |  |  |           | 
|------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------- | --------- |  | ------- |  | --------- | ------- |  |  | --------- | 
|                                                                                                                                     |  | Year ended December 31, |          
|                                                                                                                                     |  | 2013                    |           |  | 2012    |  |           | 2011    | 
|                                                                                                                                     |  | RMB000                 |           |  | RMB000 |  |           | RMB000 | 
|2012 final dividend, RMB0.36 per share (2012: 2011 final dividend, RMB0.570 per share; 2011: 2010 final dividend
RMB0.590 per share) |  |                         | 1,770,624 |  |         |  | 2,803,488 |         |  |  | 2,901,856 | 
|                                                                                                                                     |  |                         |           |  |         |  |           |         |  |  |           | 



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



15. DIVIDENDS RECOGNIZED AS DISTRIBUTION DURING THE YEARContinued



In the annual general meeting held on May 20, 2011, a final dividend of
RMB0.590 per share in respect of the year ended December 31, 2010 was approved by the shareholders and paid to the shareholders of the Company.

In the annual general meeting held on June 22, 2012, a final dividend in of RMB0.570 per share in respect of the year ended December 31, 2011 was approved by the shareholders and paid to the
shareholders of the Company.

In the annual general meeting held on May 15, 2013, a final dividend of RMB0.360 per share in respect of
the year ended December 31, 2012 was approved by the shareholders and paid to the shareholders of the Company.

The board of directors
proposes to declare a final dividend of approximately RMB98,368,000 calculated based on a total number of 4,918,400,000 shares issued at RMB1 each, at RMB0.02, in respect of the year ended December 31, 2013. The declaration and payment of the
final dividend needs to be approved by the shareholders of the Company by way of an ordinary resolution in accordance with the requirements of the Companys Articles of Association. A shareholders general meeting will be held for the
purpose of considering and, if thought fit, approving this ordinary resolution.

16. EARNINGS PER SHARE AND PER ADS

The calculation of the earnings per share attributable to the equity holders of the Company for the years ended December 31, 2013, 2012 and 2011 is
based on the profit attributable to the equity holders of the Company for the year of RMB777,368,000, RMB6,065,570,000 (restated) and RMB8,745,092,000 (restated) and on the 4,918,400,000 shares in issue, during each of the three years.

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

No diluted earnings per share has been presented as there are no dilutive potential shares in issue during the years ended December 31, 2013, 2012
and 2011.

17. BANK BALANCES AND CASH/TERM DEPOSITS AND RESTRICTED CASH

Bank balances carry interest at market rates which ranged from 0.35% to 3.10% (2012: from 0.35% to 3.35%) per annum.

At the balance sheet date, the restricted cash of the PRC subsidiaries represents the deposits paid for safety work as required by the State Administrative of work safety and bank acceptance bill deposit
which carry interest at market rates of 0.01%-0.6% (2012: 0.01%-5.75%) the remaining portion represents deposits placed as guarantee for the future payment of land subsidence as required by the Australian government, which carry interest at average
rate of 1.13% (2012: 2.58%).

Term deposits was pledged to certain banks as security for loans and banking facilities granted to the Group,
which carry fixed interest rate ranging from 0.5%-4.75% (2012: 2.60%-4.75%).



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



18. BILLS AND ACCOUNTS RECEIVABLE



|                                         |  |                 |           |   |         |  |           |  
|---------------------------------------- |  | --------------- | --------- | - | ------- |  | --------- | -
|                                         |  | At December 31, |          
|                                         |  | 2013            |           |   | 2012    | 
|                                         |  | RMB000         |           |   | RMB000 | 
|Accounts receivable                      |  |                 | 1,469,676 |   |         |  | 928,935   |  
|Less: Impairment loss                    |  |                 | (8,289    | ) |         |  | (2,532    | )
|                                         |  |                 |           |   |         |  |           |  
|                                         |  |                 | 1,461,387 |   |         |  | 926,403   |  
|Bills receivable                         |  |                 | 7,558,118 |   |         |  | 6,533,200 |  
|                                         |  |                 |           |   |         |  |           |  
|Total bills and accounts receivable, net |  |                 | 9,019,505 |   |         |  | 7,459,603 |  
|                                         |  |                 |           |   |         |  |           |  

Bills receivable represents unconditional orders in writing issued by or negotiated from customers of the Group for
completed sale orders which entitle the Group to collect a sum of money from banks or other parties. The bills are non-interest bearing and have a maturity of six months.

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 based on the invoice dates at the balance sheet dates:



|               |  |                 |           |  |         |  |           | 
|-------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|               |  | At December 31, |          
|               |  | 2013            |           |  | 2012    | 
|               |  | RMB000         |           |  | RMB000 | 
|1 - 90 days    |  |                 | 8,685,054 |  |         |  | 3,423,025 | 
|91 - 180 days  |  |                 | 316,681   |  |         |  | 3,954,398 | 
|181 - 365 days |  |                 | 4,689     |  |         |  | 80,812    | 
|Over 1 year    |  |                 | 13,081    |  |         |  | 1,368     | 
|               |  |                 |           |  |         |  |           | 
|               |  |                 | 9,019,505 |  |         |  | 7,459,603 | 
|               |  |                 |           |  |         |  |           | 

Before accepting any new customer, the Group assesses the potential customers credit quality and defines credit
limits by customer. Limits attributed to customers are reviewed once a year.

There are no significant trade receivables which are past due
but not yet impaired on both balance sheet dates. The Group does not hold any collateral over these balances. The average age of these receivables is 49 days (2012: 96 days). The management closely monitors the credit quality of accounts receivable
and consider the balance that are neither past due nor impaired are of good credit quality.

The Group has provided fully for all receivables
over 3 years because historical experience is such that receivables that are past due beyond 3 years are generally not recoverable. For receivable aged over 4 years and considered irrecoverable by the management will be written off.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



18. BILLS AND ACCOUNTS RECEIVABLEContinued



An analysis of the impairment loss on bills and accounts receivable for 2013
and 2012 are as follows:



|                       |  |         |         |   |         |  |        |  
|---------------------- |  | ------- | ------- | - | ------- |  | ------ | -
|                       |  | 2013    |         |   | 2012    | 
|                       |  | RMB000 |         |   | RMB000 | 
|Balance at January 1   |  |         | 2,532   |   |         |  | 4,143  |  
|Provided for the year  |  |         | 21,351  |   |         |  | 5      |  
|Reversal               |  |         | (15,594 | ) |         |  | (1,616 | )
|                       |  |         |         |   |         |  |        |  
|Balance at December 31 |  |         | 8,289   |   |         |  | 2,532  |  
|                       |  |         |         |   |         |  |        |  

Included in the allowance for doubtful debts is an allowance of RMB8,289,000 (2012: RMB2,532,000) for individually
impaired trade receivables, which are mainly due from corporate customers in the PRC and considered irrecoverable by the management after consideration on the credit quality of those individual customers, the ongoing relationship with the Group and
the aging of these receivables. The impairment recognized represents the difference between the carrying amount of these trade receivables and the present value of the amounts. The Group does not hold any collateral over these balances.

19. ROYALTY RECEIVABLE



|                          |  |         |           |   |         |  |           |  
|------------------------- |  | ------- | --------- | - | ------- |  | --------- | -
|                          |  | 2013    |           |   | 2012    | 
|                          |  | RMB000 |           |   | RMB000 | 
|As at January 1           |  |         | 1,349,447 |   |         |  |          |  
|Acquisition of Gloucester |  |         |          |   |         |  | 1,290,015 |  
|Cash received             |  |         | (78,801   | ) |         |  | (27,924   | )
|Unwinding discount        |  |         | 126,949   |   |         |  | 72,353    |  
|Exchange re-alignment     |  |         | (229,059  | ) |         |  | 38,596    |  
|Change in fair value      |  |         | (34,162   | ) |         |  | (23,593   | )
|                          |  |         |           |   |         |  |           |  
|As at December 31         |  |         | 1,134,374 |   |         |  | 1,349,447 |  
|                          |  |         |           |   |         |  |           |  
|Current portion           |  |         | 105,584   |   |         |  | 114,798   |  
|Non-current portion       |  |         | 1,028,790 |   |         |  | 1,234,649 |  
|                          |  |         |           |   |         |  |           |  
|                          |  |         | 1,134,374 |   |         |  | 1,349,447 |  
|                          |  |         |           |   |         |  |           |  

A right to receive a royalty of 4% of Free on Board trimmed sales from Middlemount mine operated by Middlemount Joint
Venture was acquired as part of the acquisition of Gloucester. This financial assets has been determined to have a finite life being the life of the Middlemount and is measured at fair value basis.

The royalty receivable is measured based on management expectations of the future cash flows with the re-measurement recorded in the income statement at
each balance sheet date. The amount expected to be received in the next 12 month will be disclosed as current receivable and the discounted expected future cash flow beyond 12 months will be disclosed as a non-current receivable. Unwinding discount
is included in interest income (note 10). Change in fair value is included in selling, general and administrative expenses (note 9).



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



20. INVENTORIES



|                                                 |  |                 |           |  |         |  |           | 
|------------------------------------------------ |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                 |  | At December 31, |          
|                                                 |  | 2013            |           |  | 2012    | 
|                                                 |  | RMB000         |           |  | RMB000 | 
|COST                                             |  |                 |           |  |         |  |           | 
|Methanol                                         |  |                 | 23,039    |  |         |  | 9,470     | 
|Auxiliary materials, spare parts and small tools |  |                 | 495,293   |  |         |  | 507,605   | 
|Coal products                                    |  |                 | 1,070,888 |  |         |  | 1,048,456 | 
|                                                 |  |                 |           |  |         |  |           | 
|                                                 |  |                 | 1,589,220 |  |         |  | 1,565,531 | 
|                                                 |  |                 |           |  |         |  |           | 

21. PREPAYMENTS AND OTHER RECEIVABLES



|                                        |  |                 |           |  |            |  |           | 
|--------------------------------------- |  | --------------- | --------- |  | ---------- |  | --------- | 
|                                        |  | At December 31, |          
|                                        |  | 2013            |           |  | 2012       | 
|                                        |  | RMB000         |           |  | RMB000    | 
|                                        |  |                 |           |  | (restated) | 
|Advances to suppliers (i)               |  |                 | 1,181,271 |  |            |  | 692,043   | 
|Deposit for environment protection      |  |                 | 719,817   |  |            |  | 813,212   | 
|Prepaid relocation costs of inhabitants |  |                 | 2,192,952 |  |            |  | 1,877,911 | 
|Others (i)                              |  |                 | 1,165,536 |  |            |  | 813,833   | 
|                                        |  |                 |           |  |            |  |           | 
|                                        |  |                 | 5,259,576 |  |            |  | 4,196,999 | 
|                                        |  |                 |           |  |            |  |           | 



|(i) | Included in the above balances as of December 31, 2013 is an impairment loss of RMB18,312,000 (2012: RMB25,292,000).
|--- | --------------------------------------------------------------------------------------------------------------------

The Group has provided fully for all receivables over 3 years because historical experience is such that receivables that are past due beyond 3 years are
generally not recoverable. Receivable will be written off, if aged over 4 years and considered irrecoverable by the management after considering the credit quality of the individual party and the nature of the amount overdue. During the year ended
December 31, 2013, RMB481,000 was written off against prepayments and other receivables (2012: Nil).

22. PREPAID LEASE PAYMENTS



|                    |  |                 |         |  |         |  |         | 
|------------------- |  | --------------- | ------- |  | ------- |  | ------- | 
|                    |  | At December 31, |        
|                    |  | 2013            |         |  | 2012    | 
|                    |  | RMB000         |         |  | RMB000 | 
|Current portion     |  |                 | 18,701  |  |         |  | 18,418  | 
|Non-current portion |  |                 | 676,202 |  |         |  | 695,675 | 
|                    |  |                 |         |  |         |  |         | 
|                    |  |                 | 694,903 |  |         |  | 714,093 | 
|                    |  |                 |         |  |         |  |         | 

The amounts represent prepaid lease payments for land use rights which are situated in the PRC and have a term of 45 to
50 years from the date of grant of land use rights certificates.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



23. INTANGIBLE ASSETS



|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|------------------------------------------- |  | -------------- | ---------- | - | --------------- |  | ---------- | ------------------------------- |  |  | ---------- | - |  | ------------- | ------- | - | ------- |  | ------- | ------- |  |  | ------- | - |  |  | ---------- | -
|                                            |  | Miningreserves |            |   | Miningresources |  |            | Potash mineralexplorationpermit |  |  | Technology |   |  | WaterLicenses |         |   | Others  |  |         | Total   | 
|                                            |  | RMB000        |            |   | RMB000         |  |            | RMB000                         |  |  | RMB000    |   |  | RMB000       |         |   | RMB000 |  |         | RMB000 | 
|COST                                        |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At January 1, 2012                          |  |                | 21,133,216 |   |                 |  | 4,241,228  |                                 |  |  | 1,645,227  |   |  |               | 160,233 |   |         |  | 132,254 |         |  |  | 22,830  |   |  |  | 27,334,988 |  
|Exchange re-alignment                       |  |                | 75,849     |   |                 |  | 29,593     |                                 |  |  | 55,797     |   |  |               | 3,175   |   |         |  | 153     |         |  |  | 22,600  |   |  |  | 187,167    |  
|Acquisition of Beisu and Yangcun (note 44)  |  |                | 464,600    |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  |        |   |  |  | 464,600    |  
|Acquisition of Gloucester (note 45)         |  |                | 3,028,962  |   |                 |  | 2,589,405  |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 933     |   |  |  | 5,619,300  |  
|Additions for the year                      |  |                | 1,871,472  |   |                 |  | 792,402    |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 103,646 |   |  |  | 2,767,520  |  
|Reclassification                            |  |                |           |   |                 |  | 35,798     |                                 |  |  | (35,798    | ) |  |               |        |   |         |  |        |         |  |  |        |   |  |  |           |  
|Transfer                                    |  |                | 2,388,671  |   |                 |  | (2,388,671 | )                               |  |  |           |   |  |               |        |   |         |  |        |         |  |  |        |   |  |  |           |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2012 and at January 1, 2013 |  |                | 28,962,770 |   |                 |  | 5,299,755  |                                 |  |  | 1,665,226  |   |  |               | 163,408 |   |         |  | 132,407 |         |  |  | 150,009 |   |  |  | 36,373,575 |  
|Exchange re-alignment                       |  |                | (3,554,938 | ) |                 |  | (863,376   | )                               |  |  | (162,965   | ) |  |               | (27,655 | ) |         |  | (1,327  | )       |  |  | (19,481 | ) |  |  | (4,629,742 | )
|Acquisition of Hao Sheng (note 43)          |  |                | 12,089,682 |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  |        |   |  |  | 12,089,682 |  
|Additions for the year                      |  |                | 9,566      |   |                 |  | 21,997     |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 688     |   |  |  | 32,251     |  
|Disposals                                   |  |                |           |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | (18,075 | ) |  |  | (18,075    | )
|Reclassification                            |  |                | 30,296     |   |                 |  | 4,114      |                                 |  |  | (34,410    | ) |  |               |        |   |         |  |        |         |  |  |        |   |  |  |           |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2013                        |  |                | 37,537,376 |   |                 |  | 4,462,490  |                                 |  |  | 1,467,851  |   |  |               | 135,753 |   |         |  | 131,080 |         |  |  | 113,141 |   |  |  | 43,847,691 |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|                                            |  |                |            |   |                 |  |           
|AMORTIZATION                                |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At January 1, 2012                          |  |                | 1,115,339  |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 14,030  |   |  |  | 1,129,369  |  
|Exchange re-alignment                       |  |                | 12,824     |   |                 |  | 1,425      |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 903     |   |  |  | 15,152     |  
|Provided for the year                       |  |                | 1,161,176  |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 16,419  |   |  |  | 1,177,595  |  
|Impairment loss                             |  |                | 255,231    |   |                 |  | 161,983    |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  |        |   |  |  | 417,214    |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2012 and at January 1, 2013 |  |                | 2,544,570  |   |                 |  | 163,408    |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | 31,352  |   |  |  | 2,739,330  |  
|Exchange re-alignment                       |  |                | (479,201   | ) |                 |  | (27,655    | )                               |  |  |           |   |  |               |        |   |         |  | (58     | )       |  |  | (4,754  | ) |  |  | (511,668   | )
|Provided for the year                       |  |                | 1,304,972  |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  | 311     |         |  |  | 19,795  |   |  |  | 1,325,078  |  
|Impairment loss                             |  |                | 2,052,238  |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  |        |   |  |  | 2,052,238  |  
|Eliminated on disposals                     |  |                |           |   |                 |  |           |                                 |  |  |           |   |  |               |        |   |         |  |        |         |  |  | (13,675 | ) |  |  | (13,675    | )
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2013                        |  |                | 5,422,579  |   |                 |  | 135,753    |                                 |  |  |           |   |  |               |        |   |         |  | 253     |         |  |  | 32,718  |   |  |  | 5,591,303  |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|                                            |  |                |            |   |                 |  |           
|CARRYING VALUE                              |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2013                        |  |                | 32,114,797 |   |                 |  | 4,326,737  |                                 |  |  | 1,467,851  |   |  |               | 135,753 |   |         |  | 130,827 |         |  |  | 80,423  |   |  |  | 38,256,388 |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  
|At December 31, 2012                        |  |                | 26,418,200 |   |                 |  | 5,136,347  |                                 |  |  | 1,665,226  |   |  |               | 163,408 |   |         |  | 132,407 |         |  |  | 118,657 |   |  |  | 33,634,245 |  
|                                            |  |                |            |   |                 |  |            |                                 |  |  |            |   |  |               |         |   |         |  |         |         |  |  |         |   |  |  |            |  



F-64



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



23. INTANGIBLE ASSETSContinued



The Parent Company and the Company have entered into a mining rights agreement pursuant to which the Company has agreed to pay
to the Parent Company, effective from September 25, 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. Compensation fee of RMB5 per tonne of raw coal mined (2012: RMB145,235,000) for the year has been preliminary agreed and the revised
compensation fees are to be settled with the government authority directly.

In 2012, the government authority finalized its assessment on the
mining compensation fee and the Company is required to pay RMB2,476,780,000 for acquiring the aforesaid mining right, net off of the compensation fees paid and hence, RMB1,778,832,000 is recognised in mining reserves.

The mining rights (mining reserves) are amortized based on unit of production method.

The potash mineral exploration permit is reclassified to mining resources or mining reserves according to its progress of exploration. Technology has not yet reached the stage of commercial application
and therefore is not amortized.

Water licenses are amortized over the life of mine. If the mining activities of the relevant locations have
not yet been started and the connections to water sources have not been completed, no amortization will be provided.

Other intangible assets
mainly represent computer software which is amortized on a straight line basis of 2.5 to 5 years over the useful life.

Amortization expense
of the mining rights for the year of RMB1,304,972,000 (2012: RMB1,161,176,000) has been included in cost of sales and service provided. Amortization expense of other intangible assets for the year of RMB20,106,000 (2012: RMB16,419,000) has been
included in selling, general and administrative expenses.

At December 31, 2013, intangible assets with a carrying amount of
approximately RMB10,426,786,000 (2012: RMB1,960,908,000) have been pledged to secure the Groups borrowings (note 35).

Given the
continuing decease in coal price during the period, management performed impairment test for the Groups intangible assets and concluded that the recoverable amount of cash generating units, Moolarben Coal Mine and Stradford Coal Mine were
below its carrying amount. RMB2,052,238,000 impairment loss has been recognized accordingly. The recoverable amounts of the aforesaid cash generating units have been determined based on value in use, which has been calculated using a discounted cash
flow model with an assumption of post-tax discount rate of 11% (2012:11%).



F-65



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



24. PROPERTY, PLANT AND EQUIPMENT



|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|------------------------------------------ |  | ------------------------ | --------- | - | --------- |  | --------- | --------------------- |  |  | ----------------- |  |  | ---------------- | --------- | - | --------------------------- |  | --------- | ----------------------- |  |  | ----------------------- | - |  | ------- | ------- | - |  |  | ---------- | - |  |  | ---------- | -
|                                           |  | Freeholdland inAustralia |           |   | Buildings |  |           | Harborworks andcrafts |  |  | Railwaystructures |  |  | Miningstructures |           |   | Plant,machineryandequipment |  |           | Transportationequipment |  |  | Constructionin progress |   |  | Total   |        
|                                           |  | RMB000                  |           |   | RMB000   |  |           | RMB000               |  |  | RMB000           |  |  | RMB000          |           |   | RMB000                     |  |           | RMB000                 |  |  | RMB000                 |   |  | RMB000 |        
|COST                                       |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At January 1, 2012                         |  |                          | 381,358   |   |           |  | 4,288,563 |                       |  |  | 253,678           |  |  |                  | 1,548,963 |   |                             |  | 6,379,487 |                         |  |  | 22,430,957              |   |  |         | 426,061 |   |  |  | 9,827,161  |   |  |  | 45,536,228 |  
|Exchange re-alignment                      |  |                          | 28,421    |   |           |  | 9,727     |                       |  |  |                  |  |  |                  |          |   |                             |  | 68,921    |                         |  |  | 195,142                 |   |  |         |        |   |  |  | 60,527     |   |  |  | 362,738    |  
|Acquisition of Beisu and Yangcun (note 44) |  |                          |          |   |           |  | 87,902    |                       |  |  |                  |  |  |                  | 39,841    |   |                             |  | 1,875     |                         |  |  | 147,387                 |   |  |         | 3,116   |   |  |  | 5,394      |   |  |  | 285,515    |  
|Acquisition of Gloucester (note 45)        |  |                          | 681,230   |   |           |  | 11,749    |                       |  |  |                  |  |  |                  |          |   |                             |  | 1,100,283 |                         |  |  | 1,580,100               |   |  |         |        |   |  |  | 351,124    |   |  |  | 3,724,486  |  
|Additions                                  |  |                          | 54,053    |   |           |  | 66,109    |                       |  |  |                  |  |  |                  | 34,515    |   |                             |  | 373,801   |                         |  |  | 649,199                 |   |  |         | 318     |   |  |  | 5,981,503  |   |  |  | 7,159,498  |  
|Transfers                                  |  |                          | 10,496    |   |           |  | 215,186   |                       |  |  |                  |  |  |                  | 106,086   |   |                             |  | 101,012   |                         |  |  | 1,543,579               |   |  |         | 40,708  |   |  |  | (2,017,067 | ) |  |  |           |  
|Reclassification                           |  |                          |          |   |           |  |          |                       |  |  |                  |  |  |                  |          |   |                             |  | (136,413  | )                       |  |  | 136,413                 |   |  |         |        |   |  |  |           |   |  |  |           |  
|Disposals                                  |  |                          |          |   |           |  | (25,473   | )                     |  |  |                  |  |  |                  | (35,563   | ) |                             |  | (31,228   | )                       |  |  | (1,051,496              | ) |  |         | (13,766 | ) |  |  |           |   |  |  | (1,157,526 | )
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2012 and January 1, 2013   |  |                          | 1,155,558 |   |           |  | 4,653,763 |                       |  |  | 253,678           |  |  |                  | 1,693,842 |   |                             |  | 7,857,738 |                         |  |  | 25,631,281              |   |  |         | 456,437 |   |  |  | 14,208,642 |   |  |  | 55,910,939 |  
|Exchange re-alignment                      |  |                          | (207,634  | ) |           |  | (101,418  | )                     |  |  |                  |  |  |                  |          |   |                             |  | (597,550  | )                       |  |  | (1,813,341              | ) |  |         |        |   |  |  | (393,772   | ) |  |  | (3,113,715 | )
|Acquisition of Hao Sheng (note 43)         |  |                          |          |   |           |  |          |                       |  |  |                  |  |  |                  |          |   |                             |  |          |                         |  |  | 390                     |   |  |         | 1,533   |   |  |  | 300,282    |   |  |  | 302,205    |  
|Additions                                  |  |                          | 6,166     |   |           |  | 348       |                       |  |  |                  |  |  |                  | 569       |   |                             |  | 96,174    |                         |  |  | 282,593                 |   |  |         | 1,118   |   |  |  | 7,440,068  |   |  |  | 7,827,036  |  
|Transfers                                  |  |                          | 127,168   |   |           |  | 153,430   |                       |  |  |                  |  |  |                  | 224,452   |   |                             |  | 1,501,975 |                         |  |  | 2,921,184               |   |  |         | 33,357  |   |  |  | (4,961,566 | ) |  |  |           |  
|Reclassification                           |  |                          | (2,786    | ) |           |  | 2,501     |                       |  |  |                  |  |  |                  |          |   |                             |  | 40,250    |                         |  |  | (39,965                 | ) |  |         |        |   |  |  |           |   |  |  |           |  
|Disposals                                  |  |                          |          |   |           |  | (18,566   | )                     |  |  |                  |  |  |                  | (4,096    | ) |                             |  | (8,215    | )                       |  |  | (1,214,653              | ) |  |         | (19,078 | ) |  |  |           |   |  |  | (1,264,608 | )
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2013                       |  |                          | 1,078,472 |   |           |  | 4,690,058 |                       |  |  | 253,678           |  |  |                  | 1,914,767 |   |                             |  | 8,890,372 |                         |  |  | 25,767,489              |   |  |         | 473,367 |   |  |  | 16,593,654 |   |  |  | 59,661,857 |  
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|ACCUMULATED DEPRECIATION AND IMPAIRMENT    |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At January 1, 2012                         |  |                          |          |   |           |  | 1,805,096 |                       |  |  | 88,988            |  |  |                  | 880,562   |   |                             |  | 2,271,577 |                         |  |  | 8,930,550               |   |  |         | 285,631 |   |  |  |           |   |  |  | 14,262,404 |  
|Exchange re-alignment                      |  |                          |          |   |           |  | 721       |                       |  |  |                  |  |  |                  |          |   |                             |  | 8,026     |                         |  |  | 30,868                  |   |  |         |        |   |  |  |           |   |  |  | 39,615     |  
|Provided for the year                      |  |                          |          |   |           |  | 146,857   |                       |  |  |                  |  |  |                  | 163,323   |   |                             |  | 335,878   |                         |  |  | 2,134,734               |   |  |         | 38,612  |   |  |  |           |   |  |  | 2,819,404  |  
|Impairment loss                            |  |                          |          |   |           |  |          |                       |  |  |                  |  |  |                  |          |   |                             |  | 226,925   |                         |  |  |                        |   |  |         |        |   |  |  |           |   |  |  | 226,925    |  
|Eliminated on disposals                    |  |                          |          |   |           |  | (4,762    | )                     |  |  |                  |  |  |                  | (6,565    | ) |                             |  | (5,564    | )                       |  |  | (916,065                | ) |  |         | (7,556  | ) |  |  |           |   |  |  | (940,512   | )
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2012 and January 1, 2013   |  |                          |          |   |           |  | 1,947,912 |                       |  |  | 88,988            |  |  |                  | 1,037,320 |   |                             |  | 2,836,842 |                         |  |  | 10,180,087              |   |  |         | 316,687 |   |  |  |           |   |  |  | 16,407,836 |  
|Exchange re-alignment                      |  |                          |          |   |           |  | (12,049   | )                     |  |  |                  |  |  |                  |          |   |                             |  | (136,142  | )                       |  |  | (419,904                | ) |  |         |        |   |  |  |           |   |  |  | (568,095   | )
|Provided for the year                      |  |                          |          |   |           |  | 179,219   |                       |  |  |                  |  |  |                  | 160,032   |   |                             |  | 426,565   |                         |  |  | 2,315,487               |   |  |         | 43,650  |   |  |  |           |   |  |  | 3,124,953  |  
|Eliminated on disposals                    |  |                          |          |   |           |  | (6,623    | )                     |  |  |                  |  |  |                  | (3,257    | ) |                             |  | (8,103    | )                       |  |  | (1,162,398              | ) |  |         | (18,964 | ) |  |  |           |   |  |  | (1,199,345 | )
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2013                       |  |                          |          |   |           |  | 2,108,459 |                       |  |  | 88,988            |  |  |                  | 1,194,095 |   |                             |  | 3,119,162 |                         |  |  | 10,913,272              |   |  |         | 341,373 |   |  |  |           |   |  |  | 17,765,349 |  
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|CARRYING VALUE                             |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2013                       |  |                          | 1,078,472 |   |           |  | 2,581,599 |                       |  |  | 164,690           |  |  |                  | 720,672   |   |                             |  | 5,771,210 |                         |  |  | 14,854,217              |   |  |         | 131,994 |   |  |  | 16,593,654 |   |  |  | 41,896,508 |  
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  
|At December 31, 2012                       |  |                          | 1,155,558 |   |           |  | 2,705,851 |                       |  |  | 164,690           |  |  |                  | 656,522   |   |                             |  | 5,020,896 |                         |  |  | 15,451,194              |   |  |         | 139,750 |   |  |  | 14,208,642 |   |  |  | 39,503,103 |  
|                                           |  |                          |           |   |           |  |           |                       |  |  |                   |  |  |                  |           |   |                             |  |           |                         |  |  |                         |   |  |         |         |   |  |  |            |   |  |  |            |  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



24. PROPERTY, PLANT AND EQUIPMENTContinued



The following estimated useful lives are used for the depreciation of
property, plant and equipment, other than construction in progress and freehold land:



|                               |  |                
|------------------------------ |  | ---------------
|Buildings                      |  | 10 to 30 years 
|Harbor works and crafts        |  | 40 years       
|Railway structures             |  | 15 to 25 years 
|Plant, machinery and equipment |  | 2.5 to 25 years
|Transportation equipment       |  | 6 to 18 years  

Transportation equipment includes vessels which are depreciated over the estimated useful lives of 18 years.

The mining structures include the main and auxiliary mine shafts and underground tunnels. Depreciation is provided to write off the cost of the mining
structures using the units of production method based on the estimated production volume for which the structure was designed and the contractual period of the relevant mining rights.

During the year ended December 31, 2013, the directors conducted a review of the Groups mining assets and determined that no assets were impaired due to physical damage and technical
obsolescence (2012: nil).

At December 31, 2013, property, plant and equipment with carrying amount of approximately RMB7,197,336,000
(2012: RMB5,546,226,000) have been pledged to secure bank borrowings of the Group (note 35).

At December 31, 2013, the carrying amount
of property, plant and equipment held under finance leases of the group was RMB266,655,000 (2012: RMB225,871,000).

The Group assessed the
recoverable amount of property, plant and equipment and no impairment loss was recognized (2012: RMB226,925,000) (included in selling, general and administrative expenses) for the year ended December 31, 2013.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



25. GOODWILL



|                                           |  |         |           |   |         |  |           |  
|------------------------------------------ |  | ------- | --------- | - | ------- |  | --------- | -
|                                           |  | 2013    |           |   | 2012    | 
|                                           |  | RMB000 |           |   | RMB000 | 
|COST                                       |  |         |           |   |         |  |           |  
|At January 1                               |  |         | 2,573,811 |   |         |  | 1,866,037 |  
|Acquisition of Beisu and Yangcun (note 44) |  |         |          |   |         |  | 712,214   |  
|Exchange re-alignment                      |  |         | (113,260  | ) |         |  | 13,185    |  
|Impairment loss                            |  |         |          |   |         |  | (17,625   | )
|                                           |  |         |           |   |         |  |           |  
|At December 31                             |  |         | 2,460,551 |   |         |  | 2,573,811 |  
|                                           |  |         |           |   |         |  |           |  

Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units that are expected
to benefit from that business combination. The carrying amount of goodwill had been allocated as follows:



|                                    |  |                 |           |   |         |  |           |  
|----------------------------------- |  | --------------- | --------- | - | ------- |  | --------- | -
|                                    |  | At December 31, |          
|                                    |  | 2013            |           |   | 2012    | 
|                                    |  | RMB000         |           |   | RMB000 | 
|Mining                              |  |                 |           |   |         |  |           |  
|- Jining II                         |  |                 | 10,106    |   |         |  | 10,106    |  
|- Shandong Yanmei Shipping Co., Ltd |  |                 | 10,046    |   |         |  | 10,046    |  
|- Heze                              |  |                 | 35,645    |   |         |  | 35,645    |  
|- Shanxi Group                      |  |                 | 145,613   |   |         |  | 145,613   |  
|- Yancoal Resources                 |  |                 | 532,227   |   |         |  | 640,650   |  
|- Syntech                           |  |                 | 23,744    |   |         |  | 28,581    |  
|- Premier Coal and Wesfarmers Char  |  |                 | 14,614    |   |         |  | 17,625    |  
|- Xintai                            |  |                 | 653,837   |   |         |  | 653,837   |  
|- Beisu and Yangcun                 |  |                 | 712,214   |   |         |  | 712,214   |  
|                                    |  |                
|Coal Railway Transportation         |  |                 |           |   |         |  |           |  
|- Railway Assets                    |  |                 | 97,240    |   |         |  | 97,240    |  
|                                    |  |                
|Electricity and heat supply         |  |                 |           |   |         |  |           |  
|- Hua Ju Energy                     |  |                 | 239,879   |   |         |  | 239,879   |  
|                                    |  |                
|Impairment loss                     |  |                 | (14,614   | ) |         |  | (17,625   | )
|                                    |  |                 |           |   |         |  |           |  
|                                    |  |                 | 2,460,551 |   |         |  | 2,573,811 |  
|                                    |  |                 |           |   |         |  |           |  

The recoverable amount of the Cash Generating Units is assessed by management at the operating segment level. Business
performance is reviewed by management on a mine by mine basis and each mine is considered to be a separate cash generating unit.

The
recoverable amounts of goodwill from each of the above cash generating units have been determined on the basis of value in use calculations. Value in use has been determined using a discounted cash flow model. The recoverable amounts are based on
certain key assumptions on discount rates, growth rates, selling prices, foreign currency exchange rates, mining reserves and mining resources and direct cost.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



25. GOODWILLContinued



In determining the value assigned to each key assumption, management has used
external sources of information and utilised the expertise of external consultants and experts within the Group to validate entity specific assumptions such as mining reserves and mining resources. Furthermore, in estimating future coal prices, the
Group receives long term forecast coal price data from multiple externally verifiable sources when determining its coal price forecasts, making adjustments for specific coal quality factors. The long term forecast exchange rate is based on
externally verifiable sources. Production and capital costs are based on the Groups estimate of forecasted geological conditions, stage of existing plant and equipment and future production levels. This information is obtained from internally
maintained budgets, the five year business plan, life of mine models and project evaluations performed by the Group in its ordinary course of business.

The cash flow model was based on financial budgets approved by management covering a 5-year period with an assumption of post-tax discount rate of 8-11% (2012: 8-11%). It represent an estimate of the rate
the market would apply having regard to the time value of money and the risks specific to the asset. Externally verifiable data received by the Group validates this assumption. The recoverable amount is also dependent on the life of mines (12 to 35
years). This is calculated based on the Groups annual coal production forecast for each mine and mining reserves and mining resources. The cash flows beyond the 5-year period are extrapolated using a zero percent growth rate. Management
believes that any reasonably possible change in any of these assumptions would not cause the carrying amount of each of the above units to exceed the recoverable amount of each of the above units. During the year ended 31 December 2013, the
Groups management determines that the discounted recoverable cash flows of above cash-generating unit is greater than the carrying amount and no impairment loss recognized on goodwill (2012: RMB17,625,000).

26. INVESTMENTS IN SECURITIES

The
investments in securities represent available-for-sale equity investments:



|                                    |  |                 |         |  |         |  |         | 
|----------------------------------- |  | --------------- | ------- |  | ------- |  | ------- | 
|                                    |  | At December 31, |        
|                                    |  | 2013            |         |  | 2012    | 
|                                    |  | RMB000         |         |  | RMB000 | 
|Equity securities listed on the SSE |  |                 |         |  |         |  |         | 
|- Stated at fair value              |  |                 | 172,855 |  |         |  | 167,572 | 
|Unlisted equity securities          |  |                 | 38,704  |  |         |  | 39,504  | 
|                                    |  |                 |         |  |         |  |         | 
|                                    |  |                 | 211,559 |  |         |  | 207,076 | 
|                                    |  |                 |         |  |         |  |         | 

The investments in equity securities listed on the SSE of the Company included Shanghai Shenergy Company Limited and
Jiangsu Lianyungang Port Corporation Limited, stated at the fair value as at December 31, 2013 of RMB166,074,000 (2012: RMB161,328,000) and RMB6,781,000 (2012: RMB6,244,000) respectively.

The investments in equity securities listed on the SSE are carried at fair value determined according to the quoted market prices in active market.

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 significant that the directors of the Company are of the opinion that their fair value cannot be measured reliably.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



27. INTERESTS IN ASSOCIATES



|                                                                                  |  |                 |           |  |         |  |           | 
|--------------------------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                                                  |  | At December 31, |          
|                                                                                  |  | 2013            |           |  | 2012    | 
|                                                                                  |  | RMB000         |           |  | RMB000 | 
|Cost of investments in associates                                                 |  |                 | 2,378,927 |  |         |  | 2,378,927 | 
|Share of post-acquisition profit and other comprehensive income, net of dividends |  |                 | 366,030   |  |         |  | 245,349   | 
|                                                                                  |  |                 |           |  |         |  |           | 
|                                                                                  |  |                 | 2,744,957 |  |         |  | 2,624,276 | 
|                                                                                  |  |                 |           |  |         |  |           | 

Information of major associates is as follows:



|                                                                      |  |                                    |  |                     |                   |  |                    |  |                                                          |                 |  |        |  |       
|--------------------------------------------------------------------- |  | ---------------------------------- |  | ------------------- | ----------------- |  | ------------------ |  | -------------------------------------------------------- | --------------- |  | ------ |  | ------
|                                                                      |  | Place ofestablishmentand operation |  | Class ofshares held |                   |  | Principal activity |  |                                                          | At December 31,
|                                                                      |  |                                    |  |                     | 2013              |  | 2012              
|Name of associate                                                     |  |                                    |  |                     | Interest held     |  | Interest held     
|Huadian Zouxian Power Generation Company Limited
(Huandian Zouxian) |  | PRC                                |  |                     | RegisteredCapital |  |                    |  | Electricitygenerationbusiness (i)                        |                 |  | 30%    |  | 30%   
|Yankuang Group Finance Company Limited                                |  | PRC                                |  |                     | RegisteredCapital |  |                    |  | Financialservices                                        |                 |  | 25%    |  | 25%   
|Shaanxi Future Energy Chemical Corp. Ltd
(Shaanxi Chemical)         |  | PRC                                |  |                     | RegisteredCapital |  |                    |  | Production andsales ofchemicalproducts, oiland coal (ii) |                 |  | 25%    |  | 25%   
|Shengyang Wood                                                        |  | PRC                                |  |                     | RegisteredCapital |  |                    |  | Artificial board,CCFprocessing                           |                 |  | 39.77% |  | 39.77%
|Jiemei Wall Material                                                  |  | PRC                                |  |                     | RegisteredCapital |  |                    |  | Coal refusebaked brick                                   |                 |  | 20%    |  | 20%   
|Newcastle Coal Infrastructure Group Pty Ltd                           |  | Australia                          |  |                     | RegisteredCapital |  |                    |  | Coal terminal                                            |                 |  | 27%    |  | 27%   

All of the above associates have been accounted for using equity method in the consolidated financial statements. Except
for Newcastle Coal Infrastructure Group Pty Ltd, all associates are held by the Company directly.



|(i) | Huadian Zouxian is an important strategic partner of the Group
|--- | --------------------------------------------------------------

|(ii) | Shaanxi Chemical is an important strategic partner to develop future energy business of the Group.
|---- | --------------------------------------------------------------------------------------------------

All of the associates are private companies whose quoted market price is not available.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

27. INTERESTS IN ASSOCIATESContinued



The financial information in respect of the Groups associates is set out below:



|                                                                       |  |                 |             |   |         |  |             |  
|---------------------------------------------------------------------- |  | --------------- | ----------- | - | ------- |  | ----------- | -
|                                                                       |  | At December 31, |            
|                                                                       |  | 2013            |             |   | 2012    | 
|                                                                       |  | RMB000         |             |   | RMB000 | 
|Total assets                                                           |  |                 | 25,593,037  |   |         |  | 24,751,952  |  
|Total liabilities                                                      |  |                 | (16,194,589 | ) |         |  | (15,289,724 | )
|                                                                       |  |                 |             |   |         |  |             |  
|Net assets                                                             |  |                 | 9,398,448   |   |         |  | 9,462,228   |  
|                                                                       |  |                 |             |   |         |  |             |  
|Revenue                                                                |  |                 | 5,480,789   |   |         |  | 5,030,530   |  
|                                                                       |  |                 |             |   |         |  |             |  
|Profit for the year                                                    |  |                 | 331,683     |   |         |  | 496,690     |  
|                                                                       |  |                 |             |   |         |  |             |  
|Other comprehensive income                                             |  |                 |            |   |         |  | 300         |  
|                                                                       |  |                 |             |   |         |  |             |  
|Proportion of the Groups ownership interest (%)                       |  |                 | 20% - 39.77 | % |         |  | 20% - 39.77 | %
|                                                                       |  |                 |             |   |         |  |             |  
|Groups share of associates net assets                                |  |                 | 2,744,957   |   |         |  | 2,624,276   |  
|                                                                       |  |                 |             |   |         |  |             |  
|Groups share of profit of associates for the year                     |  |                 | 233,897     |   |         |  | 141,986     |  
|                                                                       |  |                 |             |   |         |  |             |  
|Groups share of other comprehensive income of associates for the year |  |                 |            |   |         |  | 90          |  
|                                                                       |  |                 |             |   |         |  |             |  

Summarized financial information in respect of the Groups material associate is set out below:



|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  
|----------------------------------------------------- |  | --------------- | ---------- | - | ---------------- |  | ---------- | ------- |  |  | ---------- | - |  |  | --------- | -
|                                                      |  | Huadian Zouxian |            |   | Shaanxi Chemical | 
|                                                      |  | 2013            |            |   | 2012             |  |            | 2013    |  |  | 2012       |  
|                                                      |  | RMB000         |            |   | RMB000          |  |            | RMB000 |  |  | RMB000    |  
|Current assets                                        |  |                 | 326,884    |   |                  |  | 300,183    |         |  |  | 708,914    |   |  |  | 2,396,469 |  
|Non-current assets                                    |  |                 | 5,509,545  |   |                  |  | 5,664,328  |         |  |  | 7,554,936  |   |  |  | 3,341,053 |  
|Current liabilities                                   |  |                 | (858,612   | ) |                  |  | (724,996   | )       |  |  | (1,767,850 | ) |  |  | (304,522  | )
|Non-current liabilities                               |  |                 | (1,034,156 | ) |                  |  | (1,632,200 | )       |  |  | (1,096,000 | ) |  |  | (33,000   | )
|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  
|Revenue                                               |  |                 | 4,630,997  |   |                  |  | 4,399,486  |         |  |  |           |   |  |  |          |  
|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  
|Profit for the year                                   |  |                 | 661,647    |   |                  |  | 361,446    |         |  |  |           |   |  |  |          |  
|Other comprehensive income for the year               |  |                 |           |   |                  |  |           |         |  |  |           |   |  |  |          |  
|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  
|Total comprehensive income for the year               |  |                 | 661,647    |   |                  |  | 361,446    |         |  |  |           |   |  |  |          |  
|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  
|Dividends received from the associate during the year |  |                 | 97,591     |   |                  |  |           |         |  |  |           |   |  |  |          |  
|                                                      |  |                 |            |   |                  |  |            |         |  |  |            |   |  |  |           |  

Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate in
respect of Huadian Zouxian and Shaanxi Chemical recognized in the consolidated financial statements:



|                                                         |  |                 |           |   |                  |  |           |         |  |  |           |   |  |  |           |  
|-------------------------------------------------------- |  | --------------- | --------- | - | ---------------- |  | --------- | ------- |  |  | --------- | - |  |  | --------- | -
|                                                         |  | Huadian Zouxian |           |   | Shaanxi Chemical | 
|                                                         |  | 2013            |           |   | 2012             |  |           | 2013    |  |  | 2012      |  
|                                                         |  | RMB000         |           |   | RMB000          |  |           | RMB000 |  |  | RMB000   |  
|Net assets of the associates attributable to owners     |  |                 | 3,943,661 |   |                  |  | 3,607,315 |         |  |  | 5,400,000 |   |  |  | 5,400,000 |  
|                                                         |  |                 |           |   |                  |  |           |         |  |  |           |   |  |  |           |  
|Proportion of the Groups ownership interest (%)         |  |                 | 30        | % |                  |  | 30        | %       |  |  | 25        | % |  |  | 25        | %
|                                                         |  |                 |           |   |                  |  |           |         |  |  |           |   |  |  |           |  
|Carrying amount of the Groups interest in the associate |  |                 | 1,183,098 |   |                  |  | 1,082,195 |         |  |  | 1,350,000 |   |  |  | 1,350,000 |  
|                                                         |  |                 |           |   |                  |  |           |         |  |  |           |   |  |  |           |  



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

27. INTERESTS IN ASSOCIATESContinued



Aggregate information of associates that are not individually material:



|                                                                       |  |                 |         |  |         |  |         | 
|---------------------------------------------------------------------- |  | --------------- | ------- |  | ------- |  | ------- | 
|                                                                       |  | At December 31, |        
|                                                                       |  | 2013            |         |  | 2012    | 
|                                                                       |  | RMB000         |         |  | RMB000 | 
|The Groups share of profit and total comprehensive income             |  |                 | 35,403  |  |         |  | 33,552  | 
|                                                                       |  |                 |         |  |         |  |         | 
|Aggregate carrying amount of the Groups interests in these associates |  |                 | 211,859 |  |         |  | 192,081 | 
|                                                                       |  |                 |         |  |         |  |         | 

28. LONG TERM RECEIVABLES



|                            |  |                 |           |  |         |  |           | 
|--------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                            |  | At December 31, |          
|                            |  | 2013            |           |  | 2012    | 
|                            |  | RMB000         |           |  | RMB000 | 
|Loan to a joint venture (i) |  |                 | 1,587,001 |  |         |  | 1,682,983 | 
|Others (ii)                 |  |                 | 319,396   |  |         |  | 318,475   | 
|                            |  |                 |           |  |         |  |           | 
|                            |  |                 | 1,906,397 |  |         |  | 2,001,458 | 
|                            |  |                 |           |  |         |  |           | 



|(i) | Loan to a joint venture represented a loan to Middlemount Joint Venture of AUD292,260,000 (2012: AUD257,483,000). The loan is unsecured and due on December 24,
2015 with normal commercial interest rate.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Other long term receivables represented an investment in preference shares of a company (AUD15,300,000) with cumulative dividends and investment in the long term bonds
of a company (AUD31,500,000) with floating interest rate.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29. DEPOSITS MADE ON INVESTMENTS



|                                                                   |  |                 |         |  |         |  |           | 
|------------------------------------------------------------------ |  | --------------- | ------- |  | ------- |  | --------- | 
|                                                                   |  | At December 31, |        
|                                                                   |  | 2013            |         |  | 2012    | 
|                                                                   |  | RMB000         |         |  | RMB000 | 
|Shaanxi Coal Mine Operating Company (i)                            |  |                 | 117,926 |  |         |  | 117,926   | 
|Inner Mongolia Hao Sheng Coal Mining Limited (note 43)             |  |                 |        |  |         |  | 2,982,455 | 
|Shangdong Yanmei Rizhao Port Coal Storage and Blending Co., Ltd.   |  |                 |        |  |         |  | 153,000   | 
|Sheng Di Finlay Coal Processing Technology (Tianjin) Co., Ltd (ii) |  |                 | 3,000   |  |         |  |          | 
|Ordos Naryn River Mining Development Co., Ltd (iii)                |  |                 | 1,000   |  |         |  |          | 
|                                                                   |  |                 |         |  |         |  |           | 
|                                                                   |  |                 | 121,926 |  |         |  | 3,253,381 | 
|                                                                   |  |                 |         |  |         |  |           | 



|(i) | During 2006, the Company entered into a co-operative agreement with two independent third parties to establish a company for acquiring a coal mine in Shaanxi province
for operations. The Company will have to invest approximately RMB196,800,000 in order to obtain 41% equity interest. As at December 31, 2013, the Company made a deposit of RMB117,926,000 (2012: RMB117,926,000) in relation to this acquisition.
As at December 31, 2013, the relevant registration procedures to establish the new company are still in progress, and the establishment has not yet been completed.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

29. DEPOSITS MADE ON INVESTMENTSContinued



|(ii) | During the year, the Company entered into a co-operative agreement with Tianjin Finlay Coal Processing Technology Co., Ltd to set up a company, Sheng Di Finlay Coal
Processing Engineering Technology (Tianjin) Co., Ltd, which provide the consultancy services for deep processing technology of coal and managing services for coal processing factory. The company agreed to contribute RMB12,000,000, representing 50%
of its equity interest. During the year, the company made a deposit of RMB3,000,000. As at December 31, 2013, the registration procedures of such company have not yet completed.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | During the year, the Company entered into a cooperation agreement with five independent third parties to set up a company, Ordos Naryn River Mining Development Co.,
Ltd. The Company agreed to contribute RMB5,000,000, representing 10% of its equity interest. At December 31, 2013, the Company have contributed RMB1,000,000. The registration procedures of this company have not yet completed.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30. INTERESTS IN JOINT VENTURES



|                    |  |                 |            |  |         |  |         | 
|------------------- |  | --------------- | ---------- |  | ------- |  | ------- | 
|                    |  | At December 31, |           
|                    |  | 2013            |            |  | 2012    | 
|                    |  | RMB000         |            |  | RMB000 | 
|                    |  |                 | (restated) | 
|Share of net assets |  |                 | 488,350    |  |         |  | 998,627 | 
|                    |  |                 |            |  |         |  |         | 

Information on major joint ventures is as follows:



|                                                |  |                                    |           |  |                     |  |                 |                    |  |  |                                   |  |  |               |    |   |  |  |         |   |  |  |    |   |  |  |         |  
|----------------------------------------------- |  | ---------------------------------- | --------- |  | ------------------- |  | --------------- | ------------------ |  |  | --------------------------------- |  |  | ------------- | -- | - |  |  | ------- | - |  |  | -- | - |  |  | ------- | -
|                                                |  | Place ofestablishmentand operation |           |  | Class of sharesheld |  |                 | Principal activity |  |  | At December 31,                   | 
|                                                |  |                                    |           |  | 2013                |  |                 | 2012               | 
|Name of joint venture                           |  |                                    |           |  | Votingpower         |  |                 | Interest held      |  |  | Votingpower                       |  |  | Interest Held |   
|Australian Coal Processing Holdings Pty Ltd (i) |  |                                    | Australia |  |                     |  | Ordinary shares |                    |  |  | Investment holding                |  |  |               | 50 | % |  |  | 90      | % |  |  | 50 | % |  |  | 90      | %
|Ashton Coal Mines Limited (ii)                  |  |                                    | Australia |  |                     |  | Ordinary shares |                    |  |  | Real estate holder &sales company |  |  |               | 50 | % |  |  | 90      | % |  |  | 50 | % |  |  | 90      | %
|Middlemount Joint Venture (iii)                 |  |                                    | Australia |  |                     |  | Ordinary shares |                    |  |  | Coal mining andsales (iv)         |  |  |               | 50 | % |  |  | 49.9997 | % |  |  | 50 | % |  |  | 49.9997 | %

All of the above joint ventures are accounted for using equity method in the consolidated financial statements. All of
the joint ventures are private companies whose quoted market price is not available.



|(i) | The Company, through a subsidiary, held 90% equity interest of the Australian Coal Processing Holding Pty Ltd. Under the shareholders agreement between the subsidiary
and the remaining one shareholder, all major financial and operating policy decisions require a vote by directors who together represent shareholders holding 100% of the shares or a vote by shareholders who together hold 100% of the shares.
Therefore decisions must be passed unanimously by directors or shareholders and the subsidiarys voting power is 50%.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

30. INTERESTS IN JOINT VENTURESContinued



|(ii) | The Company held 90% equity interest of Ashton Coal Mines Limited. Under the shareholders agreement between the subsidiary and the remaining one shareholder, all major
financial and operating policy decisions require a unanimous resolution of the shareholders. Therefore, decisions must be passed unanimously by shareholders and the subsidiarys voting power is 50%.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | The Company, through Gloucester, held 49.9997% equity interest in Middlemount Joint Venture and decision must be passed unanimously by shareholders.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) | Middlemount Joint Venture is an important strategic partner to develop the business in Australia.
|---- | -------------------------------------------------------------------------------------------------

The above Joint Ventures are indirectly held by the Company. Middlemount Joint Venture constituted a material impact to the joint ventures. Summarized
financial information in respect of the Middlemount Joint Venture is set out below:



|                                                 |  |                                          |            |   |         |  |            |  
|------------------------------------------------ |  | ---------------------------------------- | ---------- | - | ------- |  | ---------- | -
|                                                 |  | Middlemount Joint VentureAt December 31, |           
|                                                 |  | 2013                                     |            |   | 2012    | 
|                                                 |  | RMB000                                  |            |   | RMB000 | 
|Current portion:                                 |  |                                          |            |   |         |  |            |  
|Cash and cash equivalents                        |  |                                          | 10,176     |   |         |  | 17,779     |  
|Other current assets                             |  |                                          | 364,775    |   |         |  | 416,731    |  
|                                                 |  |                                          |            |   |         |  |            |  
|Total current assets                             |  |                                          | 374,951    |   |         |  | 434,510    |  
|                                                 |  |                                          |            |   |         |  |            |  
|Other current liabilities                        |  |                                          | (798,838   | ) |         |  | (608,324   | )
|                                                 |  |                                          |            |   |         |  |            |  
|Total current liabilities                        |  |                                          | (798,838   | ) |         |  | (608,324   | )
|                                                 |  |                                          |            |   |         |  |            |  
|                                                 |  |                                         
|Non-current portion:                             |  |                                          |            |   |         |  |            |  
|Non-current assets                               |  |                                          | 6,726,490  |   |         |  | 8,319,623  |  
|                                                 |  |                                          |            |   |         |  |            |  
|Non-current financial liabilities                |  |                                          | (3,623,115 | ) |         |  | (3,936,889 | )
|Other non-current liabilities                    |  |                                          | (1,735,742 | ) |         |  | (2,251,337 | )
|                                                 |  |                                          |            |   |         |  |            |  
|Total non-current liabilities                    |  |                                          | (5,358,857 | ) |         |  | (6,188,226 | )
|                                                 |  |                                          |            |   |         |  |            |  
|Proportion of the Groups ownership interest (%) |  |                                          | 49.9997    | % |         |  | 49.9997    | %
|                                                 |  |                                          |            |   |         |  |            |  



|                                              |  |                                          |            |   |         |  |          |  
|--------------------------------------------- |  | ---------------------------------------- | ---------- | - | ------- |  | -------- | -
|                                              |  | Middlemount JointVenture At December 31, |           
|                                              |  | 2013                                     |            |   | 2012    | 
|                                              |  | RMB000                                  |            |   | RMB000 | 
|Revenue                                       |  |                                          | 2,065,736  |   |         |  | 699,533  |  
|Depreciation and amortisation                 |  |                                          | (303,960   | ) |         |  | (146,040 | )
|Interest income                               |  |                                          | 826        |   |         |  | 1,463    |  
|Interest expenses                             |  |                                          | (251,906   | ) |         |  | (116,848 | )
|Other expenses                                |  |                                          | (2,262,764 | ) |         |  | (821,260 | )
|                                              |  |                                          |            |   |         |  |          |  
|Loss for the year                             |  |                                          | (752,068   | ) |         |  | (383,152 | )
|Other comprehensive loss                      |  |                                          |           |   |         |  |         |  
|                                              |  |                                          |            |   |         |  |          |  
|Total comprehensive loss                      |  |                                          | (752,068   | ) |         |  | (383,152 | )
|                                              |  |                                          |            |   |         |  |          |  
|Proportion of the Groups ownership interest  |  |                                          | 49.9997    | % |         |  | 49.9997  | %
|The Groups share of loss                     |  |                                          | (376,032   | ) |         |  | (191,575 | )
|The Groups share of total comprehensive loss |  |                                          |           |   |         |  |         |  
|Dividends receive from joint ventures         |  |                                          |           |   |         |  |         |  
|                                              |  |                                          |            |   |         |  |          |  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

30. INTERESTS IN JOINT VENTURESContinued



Aggregate information of joint ventures that are not individually material:



|                           |  |                                |         |  |         |  |           | 
|-------------------------- |  | ------------------------------ | ------- |  | ------- |  | --------- | 
|                           |  | For the year endedDecember 31, |        
|                           |  | 2013                           |         |  | 2012    | 
|                           |  | RMB000                        |         |  | RMB000 | 
|Revenue                    |  |                                | 737,104 |  |         |  | 1,058,540 | 
|Profit for the year        |  |                                |        |  |         |  |          | 
|Total comprehensive income |  |                                |        |  |         |  |          | 
|                           |  |                                |         |  |         |  |           | 
|Share of net assets        |  |                                | 766     |  |         |  | 927       | 
|                           |  |                                |         |  |         |  |           | 



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



31. INTERESTS IN JOINT OPERATIONS

Information on major joint operations is as follows:



|                          |  |                                    |           |               |                    |                                                                  |                 |  |    |   |  |  |    |  
|------------------------- |  | ---------------------------------- | --------- | ------------- | ------------------ | ---------------------------------------------------------------- | --------------- |  | -- | - |  |  | -- | -
|                          |  | Place ofestablishmentand operation |           |               | Principal activity |                                                                  | At December 31, | 
|                          |  |                                    |           | 2013          |                    |                                                                  | 2012            | 
|Name of joint operation   |  |                                    |           | Interest held |                    |                                                                  | Interest held   | 
|Boonal joint operation    |  |                                    | Australia |               |                    | Provision of a coal haul road and train load out facilities      |                 |  | 50 | % |  |  | 50 | %
|Athena joint operation    |  |                                    | Australia |               |                    | Coal exploration                                                 |                 |  | 51 | % |  |  | 51 | %
|Ashton joint operation    |  |                                    | Australia |               |                    | Development and operation of open-cut and underground coal mines |                 |  | 90 | % |  |  | 90 | %
|Moolarben joint operation |  |                                    | Australia |               |                    | Development and operation of open-cut and underground coal mines |                 |  | 80 | % |  |  | 80 | %

The above joint operations are established and operated as unincorporated businesses and are held indirectly by the
Company.

The financial information in respect of the Groups joint operations is set out below:



|                           |  |                 |             |   |         |  |             |  
|-------------------------- |  | --------------- | ----------- | - | ------- |  | ----------- | -
|                           |  | At December 31, |            
|                           |  | 2013            |             |   | 2012    | 
|                           |  | RMB000         |             |   | RMB000 | 
|Total assets               |  |                 | 20,159,195  |   |         |  | 21,879,311  |  
|Total liabilities          |  |                 | (17,076,324 | ) |         |  | (20,592,065 | )
|                           |  |                 |             |   |         |  |             |  
|Net assets                 |  |                 | 3,082,871   |   |         |  | 1,287,246   |  
|                           |  |                 |             |   |         |  |             |  
|Revenue                    |  |                 | 5,774,959   |   |         |  | 6,085,954   |  
|Expenses                   |  |                 | (8,271,727  | ) |         |  | (9,282,244  | )
|                           |  |                 |             |   |         |  |             |  
|Loss for the year          |  |                 | (2,496,768  | ) |         |  | (3,196,290  | )
|                           |  |                 |             |   |         |  |             |  
|Other comprehensive income |  |                 |            |   |         |  |            |  
|                           |  |                 |             |   |         |  |             |  



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



32. BILLS AND ACCOUNTS PAYABLE



|                 |  |                 |           |  |         |  |           | 
|---------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                 |  | At December 31, |          
|                 |  | 2013            |           |  | 2012    | 
|                 |  | RMB000         |           |  | RMB000 | 
|Accounts payable |  |                 | 2,400,314 |  |         |  | 2,906,612 | 
|Bills payable    |  |                 | 316,361   |  |         |  | 3,905,148 | 
|                 |  |                 |           |  |         |  |           | 
|                 |  |                 | 2,716,675 |  |         |  | 6,811,760 | 
|                 |  |                 |           |  |         |  |           | 

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



|               |  |                 |           |  |         |  |           | 
|-------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|               |  | At December 31, |          
|               |  | 2013            |           |  | 2012    | 
|               |  | RMB000         |           |  | RMB000 | 
|1 - 90 days    |  |                 | 2,351,811 |  |         |  | 6,384,206 | 
|91 - 180 days  |  |                 | 92,946    |  |         |  | 224,505   | 
|181 - 365 days |  |                 | 128,749   |  |         |  | 68,640    | 
|Over 1 year    |  |                 | 143,169   |  |         |  | 134,409   | 
|               |  |                 |           |  |         |  |           | 
|               |  |                 | 2,716,675 |  |         |  | 6,811,760 | 
|               |  |                 |           |  |         |  |           | 

The average credit period for accounts payable and bills payable is 90 days. The Group has financial risk management
policies in place to ensure that all payables are within the credit timeframe.

33. OTHER PAYABLES AND ACCRUED EXPENSES



|                                                                                             |  |                 |           |  |         |  |           | 
|-------------------------------------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                                                             |  | At December 31, |          
|                                                                                             |  | 2013            |           |  | 2012    | 
|                                                                                             |  | RMB000         |           |  | RMB000 | 
|Customers deposits                                                                          |  |                 | 852,247   |  |         |  | 1,368,734 | 
|Accrued wages                                                                                |  |                 | 1,054,527 |  |         |  | 1,084,200 | 
|Other taxes payable                                                                          |  |                 | 280,082   |  |         |  | 204,082   | 
|Payables in respect of purchases of property, plant and equipment and construction materials |  |                 | 1,268,415 |  |         |  | 3,662,785 | 
|Accrued freight charges                                                                      |  |                 | 2,259     |  |         |  | 9,434     | 
|Accrued repairs and maintenance                                                              |  |                 | 19,246    |  |         |  | 51,221    | 
|Staff welfare payable                                                                        |  |                 | 242,735   |  |         |  | 187,631   | 
|Withholding tax payable                                                                      |  |                 | 669       |  |         |  | 7,251     | 
|Deposits received from employees                                                             |  |                 | 13,985    |  |         |  | 24,736    | 
|Coal price adjustment fund                                                                   |  |                 |          |  |         |  | 51,995    | 
|Accrued land subsidence, restoration, rehabilitation and environmental costs                 |  |                 | 56,758    |  |         |  | 1,446     | 
|Interest payable                                                                             |  |                 | 540,902   |  |         |  | 395,778   | 
|Payable on acquisition of Hao Shengs equity                                                 |  |                 | 2,519,313 |  |         |  |          | 
|Others                                                                                       |  |                 | 1,533,996 |  |         |  | 1,964,504 | 
|                                                                                             |  |                 |           |  |         |  |           | 
|                                                                                             |  |                 | 8,385,134 |  |         |  | 9,013,797 | 
|                                                                                             |  |                 |           |  |         |  |           | 



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



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



|                                           |  |         |            |   |         |  |           |  
|------------------------------------------ |  | ------- | ---------- | - | ------- |  | --------- | -
|                                           |  | 2013    |            |   | 2012    | 
|                                           |  | RMB000 |            |   | RMB000 | 
|Balance at January 1                       |  |         | 3,770,266  |   |         |  | 3,181,643 |  
|Exchange re-alignment                      |  |         | (100,572   | ) |         |  | 24,248    |  
|Acquisition of Beisu and Yangcun (note 44) |  |         |           |   |         |  | 20        |  
|Acquisition of Gloucester (note 45)        |  |         |           |   |         |  | 100,145   |  
|Additional provision in the year           |  |         | 1,390,619  |   |         |  | 1,450,557 |  
|Utilization of provision                   |  |         | (1,206,605 | ) |         |  | (986,347  | )
|                                           |  |         |            |   |         |  |           |  
|Balance at December 31                     |  |         | 3,853,708  |   |         |  | 3,770,266 |  
|                                           |  |         |            |   |         |  |           |  
|Presented as:                              |  |         |            |   |         |  |           |  
|Current portion                            |  |         | 3,321,564  |   |         |  | 3,291,857 |  
|Non-current portion                        |  |         | 532,144    |   |         |  | 478,409   |  
|                                           |  |         |            |   |         |  |           |  
|                                           |  |         | 3,853,708  |   |         |  | 3,770,266 |  
|                                           |  |         |            |   |         |  |           |  

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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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



35. BORROWINGS



|                                   |  |                 |            |  |         |  |            | 
|---------------------------------- |  | --------------- | ---------- |  | ------- |  | ---------- | 
|                                   |  | At December 31, |           
|                                   |  | 2013            |            |  | 2012    | 
|                                   |  | RMB000         |            |  | RMB000 | 
|Current liabilities                |  |                 |            |  |         |  |            | 
|Bank borrowings                    |  |                 |            |  |         |  |            | 
|- Unsecured borrowings (i)         |  |                 | 4,604,554  |  |         |  | 5,024,476  | 
|- Secured borrowings (ii)          |  |                 | 629,733    |  |         |  | 657,876    | 
|Loans pledged by machineries (iii) |  |                 |           |  |         |  | 2,000,000  | 
|Finance lease liabilities (iv)     |  |                 | 42,852     |  |         |  | 30,240     | 
|Guaranteed note (v)                |  |                 | 5,997,917  |  |         |  |           | 
|                                   |  |                 |            |  |         |  |            | 
|                                   |  |                 | 11,275,056 |  |         |  | 7,712,592  | 
|Non-current liabilities            |  |                 |            |  |         |  |            | 
|Bank borrowings                    |  |                 |            |  |         |  |            | 
|- Unsecured borrowings (i)         |  |                 | 12,499,105 |  |         |  | 3,875,665  | 
|- Secured borrowings (ii)          |  |                 | 18,520,543 |  |         |  | 17,967,840 | 
|Loans pledged by machineries (iii) |  |                 | 1,800,000  |  |         |  |           | 
|Finance lease liabilities (iv)     |  |                 | 224,640    |  |         |  | 202,450    | 
|Guaranteed notes (v)               |  |                 | 11,055,667 |  |         |  | 11,237,835 | 
|                                   |  |                 |            |  |         |  |            | 
|                                   |  |                 | 44,099,955 |  |         |  | 33,283,790 | 
|                                   |  |                 |            |  |         |  |            | 
|Total borrowings                   |  |                 | 55,375,011 |  |         |  | 40,996,382 | 
|                                   |  |                 |            |  |         |  |            | 

(i) Unsecured borrowings are repayable as follows:



|                                                  |  |                 |            |  |         |  |           | 
|------------------------------------------------- |  | --------------- | ---------- |  | ------- |  | --------- | 
|                                                  |  | At December 31, |           
|                                                  |  | 2013            |            |  | 2012    | 
|                                                  |  | RMB000         |            |  | RMB000 | 
|Within one year                                   |  |                 | 4,604,554  |  |         |  | 5,024,476 | 
|More than one year, but not exceeding two years   |  |                 | 2,809,925  |  |         |  | 256,000   | 
|More than two years, but not more than five years |  |                 | 9,679,180  |  |         |  | 3,619,665 | 
|More than five years                              |  |                 | 10,000     |  |         |  |          | 
|                                                  |  |                 |            |  |         |  |           | 
|Total                                             |  |                 | 17,103,659 |  |         |  | 8,900,141 | 
|                                                  |  |                 |            |  |         |  |           | 

At December 31, 2013, short-term borrowings amount to RMB3,512,612,000 (2012: RMB3,110,432,000). Three new
short-term borrowings of RMB2,362,612,000 (EUR130,000,000, USD208,000,000) are dominated in foreign currency with fixed interest rates at a range from 2.98%-3.47% (2012: three-month LIBOR plus a margin of 2%, approximately 2.31%). The remaining
short term borrowings carried interest at 5.10%-6.00% per annum (2012: 5.40%-6.56% per annum). Long-term borrowings amounting to RMB8,900,064,000 (2012: RMB4,403,887,000) with RMB1,069,942,000 payable within one year. Long-term borrowing
of RMB6,138,167,000 carried interest at a range from 5.54%-6.40% per annum while the remaining RMB2,751,897,000 carried interest at three-month LIBOR plus a margin 1.2%-2.4% per annum (2012: 5.80% per annum). And there is
RMB10,000,000 long term borrowing subject to the interest rate will be adjusted in accordance with the benchmark lending rate published by the Peoples Bank of China (PBOC). The interest rate is 6.55% during the year. Long-term
borrowings are guaranteed by the Parent Company.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

35. BORROWINGSContinued

(i) Unsecured borrowings are repayable as
follows:continued



The loan of Shanxi Tianchi was a loan which was acquired before the acquisition of Shanxi Tianchi with
the amount of RMB88,000,000 (2012: RMB110,000,000) carried interest at 6.55% (2012: 6.4%) per annum and is subject to adjustment based on the interest rate stipulated by PBOC with RMB22,000,000 payable within one year. This loan is repayable by
20 installments over a period of 10 years, with the first installment due in May 2008. The loan is guaranteed by the Parent Company.

The
short-term borrowings of Yancoal International amounting to RMB4,602,983,000 (USD755,000,000) (2012: Nil), the borrowings carried interest at three-month LIBOR plus a margin of 1.8% to 3.5% (2012: Nil). The loan will be fully repayable at maturity.

(ii) Secured borrowings are repayable as follows:



|                                                  |  |                 |            |  |         |  |            | 
|------------------------------------------------- |  | --------------- | ---------- |  | ------- |  | ---------- | 
|                                                  |  | At December 31, |           
|                                                  |  | 2013            |            |  | 2012    | 
|                                                  |  | RMB000         |            |  | RMB000 | 
|Within one year                                   |  |                 | 629,733    |  |         |  | 657,876    | 
|More than one year, but not exceeding two years   |  |                 |           |  |         |  | 685,521    | 
|More than two years, but not more than five years |  |                 | 1,892,834  |  |         |  | 1,105,228  | 
|More than five years                              |  |                 | 16,627,709 |  |         |  | 16,177,091 | 
|                                                  |  |                 |            |  |         |  |            | 
|Total                                             |  |                 | 19,150,276 |  |         |  | 18,625,716 | 
|                                                  |  |                 |            |  |         |  |            | 

At December 31, 2013, loans obtained by the Group for the purpose of settling the consideration in respect of
acquisition of Yancoal Resources amounting to RMB17,230,375,000 (USD2,839,310,000) (2012: RMB18,503,917,000). The borrowings of RMB5,825,767,000 (USD960,000,000) (2012: RMB12,148,554,000) carried interest at three-month LIBOR plus a margin of 0.75%
(approximately 0.99%) (2012: approximately 1.6%). The borrowings of RMB303,425,000 (USD50,000,000) (2012: RMB283,256,000) carried interest at three-months LIBOR plus a margin of 0.8% (approximately 1.04%) (2012: approximately 1.11%). The
borrowings of RMB11,101,183,000 (USD1,829,310,000) (2012: RMB6,072,107,000) carried interest at three-month LIBOR plus 2.8% (approximately 3.04%) (2012: approximately 3.11%).

Other borrowings arose from the acquisition of Gloucester, amounting to RMB90,901,000 (USD14,979,000) (2012: RMB121,799,000) carried interest at 5.68%. The borrowings together with loans pledged by
machineries are guaranteed by the Company, counter-guaranteed by the Parent Company and secured by the Groups term deposits (note 17), property, plant and equipment (note 24), intangible assets (note 23) and other assets in Yancoal Resources.

Moreover, a new borrowings of RMB1,829,000,000 (USD300,000,000) obtained by Yancoal International. The borrowings carried interest at
three-month LIBOR plus 1.55% (approximately 1.79%) and guaranteed by the Parent companys stand by letter of credits.

In November 2013,
the Companys subsidiary, Yancoal Australia, obtained two amendments to the loan agreement on future compliance for debt covenants in respect of certain bank borrowings amounting to RMB15,111 million (US$2,490 million) and RMB303.4 million
(US$50 million), respectively, as of December 31, 2013. These bank borrowings, which amounted to RMB15,414.4 million, were classified as non-current as of December 31, 2013. The amendments were obtained without any consideration paid to the lenders.
The relevant covenants of the two borrowings are identical and were required to be tested half-yearly, with an initial test date of December 31, 2013. The amendments obtained deferred the initial test date of the financial covenants to June 30, 2014
and reduced the interest cover ratio, and for the consolidated net worth covenant, to December 31, 2014.

The original covenants required
Yancoal Australia to maintain the following as of and/or for the year ended December 31, 2013: (i) a gearing ratio not exceeding 0.9; (ii) interest cover ratio of not less than 1.5; and (iii) consolidated net worth not less than AUD2,000,000,000.
Yancoal Australia believed that it could not meet the above debt covenants and requested advance waivers in November 2013. The financial position of Yancoal Australia as of and for the year ended December 31, 2013 did not meet the above debt
covenants requirements if required. The actual covenants calculations as of and for the year ended December 31, 2013 as calculated from the annual financial statements of Yancoal Australia, which are prepared in accordance with the Australian
Accounting Standards and also complied with IFRS, would have been: (i) a gearing ratio of 0.80; (ii) interest cover ratio of -5.75; and (iii) consolidated net worth of AUD1,212,460,000.

Under the amendments received from the lenders, the covenants have been revised as follows:



| |  |  | gearing ratio of Yancoal Australia will not exceed 0.90 on June 30, 2014 and 0.80 thereafter;
| | - |  | ---------------------------------------------------------------------------------------------



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

35. BORROWINGSContinued

(ii) Secured borrowings are repayable as
follows:continued



| |  |  | interest coverage ratio of Yancoal Australia will not be less than 1.5 for the 12 month period ending on June 30, 2014 and 2.0 for the 12 months ending
thereafter under the amendments in November 2013; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | consolidated net worth of Yancoal Australia is not less than AUD1,600,000,000 on each test date on and after December 31, 2014.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------

Yancoal Australia has undertaken to maintain the above covenants in accordance with the amendments and the relevant loan
agreements. However, we cannot assure you that Yancoal Australia will in the future be able to maintain such covenants or be required to seek additional amendments or waivers under its relevant loan agreements.

(iii) Loans pledged by machineries are repayable as follows:



|                                                  |  |                 |           |   |         |  |           |  
|------------------------------------------------- |  | --------------- | --------- | - | ------- |  | --------- | -
|                                                  |  | At December 31, |          
|                                                  |  | 2013            |           |   | 2012    | 
|                                                  |  | RMB000         |           |   | RMB000 | 
|Minimum lease payments                            |  |                 |           |   |         |  |           |  
|Within one year                                   |  |                 | 187,200   |   |         |  | 2,048,167 |  
|More than one year, but not exceeding two years   |  |                 | 187,200   |   |         |  |          |  
|More than two years, but not exceeding five years |  |                 | 1,761,600 |   |         |  |          |  
|More than five years                              |  |                 | 610,770   |   |         |  |          |  
|                                                  |  |                 |           |   |         |  |           |  
|                                                  |  |                 | 2,746,770 |   |         |  | 2,048,167 |  
|Less: Future finance charges                      |  |                 | (946,770  | ) |         |  | (48,167   | )
|                                                  |  |                 |           |   |         |  |           |  
|Present value of lease payments                   |  |                 | 1,800,000 |   |         |  | 2,000,000 |  
|                                                  |  |                 |           |   |         |  |           |  



|                                                                      |  |                 |           |  |         |  |            |  
|--------------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | ---------- | -
|                                                                      |  | At December 31, |          
|                                                                      |  | 2013            |           |  | 2012    | 
|                                                                      |  | RMB000         |           |  | RMB000 | 
|Present value of minimum lease payments                               |  |                 |           |  |         |  |            |  
|Within one year                                                       |  |                 |          |  |         |  | 2,000,000  |  
|More than one year, but not exceeding two years                       |  |                 |          |  |         |  |           |  
|More than two years, but not exceeding five years                     |  |                 | 1,200,000 |  |         |  |           |  
|More than five years                                                  |  |                 | 600,000   |  |         |  |           |  
|                                                                      |  |                 |           |  |         |  |            |  
|                                                                      |  |                 | 1,800,000 |  |         |  | 2,000,000  |  
|Less: Amounts due within one year and included in current liabilities |  |                 |          |  |         |  | (2,000,000 | )
|                                                                      |  |                 |           |  |         |  |            |  
|Amounts due after one year and included in non-current liabilities    |  |                 | 1,800,000 |  |         |  |           |  
|                                                                      |  |                 |           |  |         |  |            |  

At December 31, 2013, a loan of RMB1,800,000,000 (2012: RMB2,000,000,000) carried interest at around 10.4% (2012:
6.56%) per annum is pledged by machineries of the Group. The interest rate will be adjusted in accordance with the benchmark of 3 to 5 years lending rate published by the Peoples Bank of China (PBOC) plus 4%.

(iv) Finance lease liabilities are repayable as follows:



|                                                  |  |                 |         |   |         |  |         |  
|------------------------------------------------- |  | --------------- | ------- | - | ------- |  | ------- | -
|                                                  |  | At December 31, |        
|                                                  |  | 2013            |         |   | 2012    | 
|                                                  |  | RMB000         |         |   | RMB000 | 
|Minimum payments                                  |  |                 |         |   |         |  |         |  
|Within one year                                   |  |                 | 57,617  |   |         |  | 44,829  |  
|More than one year, but not exceeding two years   |  |                 | 58,732  |   |         |  | 44,832  |  
|More than two years, but not exceeding five years |  |                 | 176,377 |   |         |  | 148,641 |  
|More than five years                              |  |                 | 22,741  |   |         |  | 27,090  |  
|                                                  |  |                 |         |   |         |  |         |  
|                                                  |  |                 | 315,467 |   |         |  | 265,392 |  
|Less: Future finance charges                      |  |                 | (47,975 | ) |         |  | (32,702 | )
|                                                  |  |                 |         |   |         |  |         |  
|Present value of lease payments                   |  |                 | 267,492 |   |         |  | 232,690 |  
|                                                  |  |                 |         |   |         |  |         |  



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

35. BORROWINGSContinued

(iv) Finance lease liabilities are repayable as
follows:continued



|                                                                      |  |                 |         |   |         |  |         |  
|--------------------------------------------------------------------- |  | --------------- | ------- | - | ------- |  | ------- | -
|                                                                      |  | At December 31, |        
|                                                                      |  | 2013            |         |   | 2012    | 
|                                                                      |  | RMB000         |         |   | RMB000 | 
|Present value of minimum payments                                     |  |                 |         |   |         |  |         |  
|Within one year                                                       |  |                 | 42,852  |   |         |  | 30,240  |  
|More than one year, but not exceeding two years                       |  |                 | 53,266  |   |         |  | 46,943  |  
|More than two years, but not exceeding five years                     |  |                 | 159,798 |   |         |  | 140,829 |  
|More than five years                                                  |  |                 | 11,576  |   |         |  | 14,678  |  
|                                                                      |  |                 |         |   |         |  |         |  
|                                                                      |  |                 | 267,492 |   |         |  | 232,690 |  
|Less: Amounts due within one year and included in current liabilities |  |                 | (42,852 | ) |         |  | (30,240 | )
|                                                                      |  |                 |         |   |         |  |         |  
|Amounts due after one year and included in non-current liabilities    |  |                 | 224,640 |   |         |  | 202,450 |  
|                                                                      |  |                 |         |   |         |  |         |  

Finance lease liabilities of RMB267,492,000 (AUD49,261,000) (2012: RMB232,690,000) was obtained from the acquisition of
Gloucester in 2012, which carried interest at 5.16% (2012: 7.74%) per annum.

(v) Guaranteed notes are detailed as follows:



|                                                                       |  |                 |            |  |         |  |            | 
|---------------------------------------------------------------------- |  | --------------- | ---------- |  | ------- |  | ---------- | 
|                                                                       |  | At December 31, |           
|                                                                       |  | 2013            |            |  | 2012    | 
|                                                                       |  | RMB000         |            |  | RMB000 | 
|Guaranteed notes denominated in RMB repayable within one year          |  |                 | 5,997,917  |  |         |  |           | 
|Guaranteed notes denominated in USD repayable within two to five years |  |                 | 2,743,500  |  |         |  | 2,828,176  | 
|Guaranteed notes denominated in RMB repayable within two to five years |  |                 | 993,200    |  |         |  | 990,600    | 
|Guaranteed notes denominated in USD repayable after five years         |  |                 | 3,353,167  |  |         |  | 3,456,659  | 
|Guaranteed notes denominated in RMB repayable over five years          |  |                 | 3,965,800  |  |         |  | 3,962,400  | 
|                                                                       |  |                 |            |  |         |  |            | 
|                                                                       |  |                 | 17,053,584 |  |         |  | 11,237,835 | 
|                                                                       |  |                 |            |  |         |  |            | 

The above USD guaranteed notes were issued by a subsidiary of the Company on May 16, 2012. Guaranteed notes with par
value of USD450,000,000 and USD550,000,000 will mature in 2017 and 2022 and with interest rate of 4.461% and 5.730% per annum respectively. The notes are unconditionally secured by the Company and the respective security is non-cancellable. For
the year ended December 31, 2013, there was no redemption on the notes.

In 2012, with the approval from China Securities Regulatory
Commission, the Company is allowed to issue RMB notes in the PRC, RMB notes with par value of RMB300,167,000 and RMB4,699,833,000 was issued to the public and institutional investors. An unconditional and irrecoverable corporate guarantee was
provided by the Parent Company on the RMB notes. At December 31, 2013, RMB notes of RMB4,959,000,000 (2012: RMB4,953,000,000) include notes of RMB3,965,800,000 (2012: RMB3,962,400,000) with a maturity period of ten years and interest rate of
4.95% per annum and notes of RMB993,200,000 (2012: RMB990,600,000) with a maturity period of five years and interest rate of 4.20% per annum. For the year ended December 31, 2013, there was no redemption on the notes.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

35. BORROWINGSContinued



During the year, with the approval from China Securities Regulatory Commission, the Company is allowed
to issue RMB notes in the PRC with par value of RMB5,000,000,000. At December 31, 2013, RMB note of RMB4,997,917,000 had a maturity period of 1 year and interest rate of 6% per annum. Moreover, the Company issued RMB notes in the PRC with
par value of RMB1,000,000,000. At December 31, 2013, RMB note of RMB1,000,000,000 had a maturity period of 90 days and interest rate of 6.8% per annum. For the year ended December 31, 2013, there was no redemption on the notes.

36. DERIVATIVE FINANCIAL INSTRUMENTS



|                                        |  |                 |         |  |         |  |         | 
|--------------------------------------- |  | --------------- | ------- |  | ------- |  | ------- | 
|                                        |  | At December 31, |        
|                                        |  | 2013            |         |  | 2012    | 
|                                        |  | RMB000         |         |  | RMB000 | 
|Derivatives used for cash flow hedging: |  |                 |         |  |         |  |         | 
|Current assets                          |  |                 |         |  |         |  |         | 
|- Forward foreign exchange contracts    |  |                 | 13,062  |  |         |  | 76,640  | 
|- Collar Option                         |  |                 | 3,589   |  |         |  | 14,091  | 
|                                        |  |                 |         |  |         |  |         | 
|                                        |  |                 | 16,651  |  |         |  | 90,731  | 
|                                        |  |                 |         |  |         |  |         | 
|Current liabilities                     |  |                 |         |  |         |  |         | 
|- Forward foreign exchange contracts    |  |                 | 181,358 |  |         |  | 13,656  | 
|- Collar Option                         |  |                 | 90,221  |  |         |  |        | 
|- Interest rate swap contracts          |  |                 | 43,532  |  |         |  | 114,421 | 
|                                        |  |                 |         |  |         |  |         | 
|                                        |  |                 | 315,111 |  |         |  | 128,077 | 
|                                        |  |                 |         |  |         |  |         | 

During the year ended December 31, 2013, the Groups subsidiaries in Australia entered into forward foreign
exchange contracts to sell or purchase specified amounts of foreign currencies in the future at stipulated exchange rates. The objective of entering into the forward foreign exchange contracts is to reduce the foreign exchange rate related
volatility of revenue stream and capital expenditure and thereby assist in risk management for the Group. The outstanding sell United States dollars contracts are hedging highly probable forecasted sales of coal. Cash flows and any impact to profit
or loss arising from all the foreign exchange contracts are expected to occur within one year from the balance sheet date.

As at
December 31, 2013, the outstanding notional amount to sell United States dollars (sell United States dollars and buy Australian dollars) was approximately RMB1,783,000,000 (2012: RMB5,390,000,000) and RMB3,096,000,000 (2012: RMB746,000,000),
all maturing within one year (2012: one year) with forward rates ranging from 0.91 to 1.01 (2012: ranging from 0.9755 to 1.0013 respectively) and floor price and ceiling price of 0.83 and 0.9015 (2012: 0.934 and 1.055).

As at December 31, 2013, the outstanding notional amount to buy Euro (EUR) (sell Australian dollars buy EUR) was approximately
RMB67,000,000 (2012: RMB51,000,000), maturing within one year (2012: one year) with forward rates ranging from 0.6721 to 0.7700 (2012: 0.9993).

As at December 31, 2013, the outstanding notional amount to buy British Pound (sell Australian dollars buy British Pound) was approximately
RMB2,000,000 (2012: RMB3,000,000), maturing within one year with forward rate at 0.5615 (2012: 0.99948).



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

36. DERIVATIVE FINANCIAL INSTRUMENTSContinued



As at December 31, 2013, the outstanding notional amount to buy EUR (sell United States dollars buy
EUR) was approximately RMB100,000,000 (2012: RMB114,000,000) maturing within one year with forward rate at 0.731 (2012: 1.00013 to 1.00031).

The Company also entered into contracts with three banks to hedge a proportion of borrowings issued at variable interest rates through the use of
floating-to-fixed interest rate swap contracts. As at December 31, 2013, the outstanding notional amount was approximately RMB6,097,000,000 (USD1,000,000,000) (2012: RMB6,285,000,000), contract period of four years (2012: four years) at a hedge
period of 3 months (2012: 3 months) with fixed rate of approximately 2.75%, 2.42% and 2.41% (2012: approximately 2.75%, 2.42% and 2.41% respectively) and floating rate as LIBOR + 0.75% (2012: LIBOR + 0.75%). The non-current portion of the
derivatives is not material and is included in current portion. Cash flows and any impact to profit or loss arising from the above use of floating-to-fixed interest rate swap contracts are expected to occur within each hedge period of 3 months over
the contract period.

For the year ended December 31, 2013, the ineffective hedging portion of the changes in fair values of the forward
foreign exchange contracts of approximately RMB39,700,000 (2012: RMB20,400,000) was recognized as selling, general and administrative expenses in the consolidated income statement. The effective hedging portion was recognized as current portion of
derivatives financial instruments in the consolidated balance sheet.

The fair values of the forward foreign exchange contracts are estimated
based on the discounted cash flows between the contract forward rate and spot forward rate. The fair values of the interest rate swap contracts are estimated based on the discounted cash flows between the contract floating rate and the contract
fixed rate.

In addition, the Australian subsidiaries USD bank loan repayments in a six-month period are designated to hedge the
forecast USD sales during the same period.

37. CONTINGENT VALUE RIGHTS SHARES LIABILITIES



|                                                                 |  |         |           |   |         |  |           | 
|---------------------------------------------------------------- |  | ------- | --------- | - | ------- |  | --------- | 
|                                                                 |  | 2013    |           |   | 2012    | 
|                                                                 |  | RMB000 |           |   | RMB000 | 
|Balance at January 1                                             |  |         | 1,432,188 |   |         |  |          | 
|Acquisition of Gloucester                                        |  |         |          |   |         |  | 1,312,913 | 
|Change in fair value recognised in consolidated income statement |  |         | 241,223   |   |         |  | 79,423    | 
|Exchange re-alignment                                            |  |         | (264,682  | ) |         |  | 39,852    | 
|                                                                 |  |         |           |   |         |  |           | 
|Balance at December 31                                           |  |         | 1,408,729 |   |         |  | 1,432,188 | 
|                                                                 |  |         |           |   |         |  |           | 



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

37. CONTINGENT VALUE RIGHTS SHARES LIABILITIESContinued



In 2012, Yanzhou Coal Australia issued 87,645,184 contingent value rights shares as consideration for
the acquisition of Gloucester. The purpose of the issuance of CVR shares is to protect the original shareholders of Gloucester from the fluctuation of the share price of the Yancoal Australia after the merger. If the weighted average price of the
last 3 months in the next 18 months after the acquisition is lower than AUD6.96 per share, the CVR shares will be redeemed by cash (or shares of Yancoal Australia held by the Company at the discretion of Yancoal Australia) at guaranteed price of
AUD6.96 per share. The redemption price will not exceed AUD3 per share. The holders of the CVR shares do not have the power to vote at the shareholders meeting (unless required by the listing rules of the ASX). Also, the holders of the CVR shares
are not entitled to any dividend, right to allot the new and bonus shares that are distributed or issued by Yancoal Australia. The Company are committed to the obligations related to the issuance of the CVR shares by Yancoal Australia. At
November 21, 2013, the Company passed the resolution to instruct Yancoal Australia to settle the CVR shares by cash.

The CVR shares are
listed on the ASX and its fair value are based on market price.

38. LONG-TERM PAYABLE



|                                                               |  |                 |           |  |         |  |           | 
|-------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                               |  | At December 31, |          
|                                                               |  | 2013            |           |  | 2012    | 
|                                                               |  | RMB000         |           |  | RMB000 | 
|Current liabilities                                            |  |                 |           |  |         |  |           | 
|- Deferred payment for acquisition of interests in Minerva (i) |  |                 | 2,715     |  |         |  | 3,268     | 
|- Mining right compensation fee payable (ii)                   |  |                 | 436,285   |  |         |  | 396,285   | 
|                                                               |  |                 |           |  |         |  |           | 
|                                                               |  |                 | 439,000   |  |         |  | 399,553   | 
|                                                               |  |                
|Non-current liabilities                                        |  |                 |           |  |         |  |           | 
|- Deferred payment for acquisition of interests in Minerva (i) |  |                 | 4,610     |  |         |  | 8,088     | 
|-Mining right compensation fee payable (ii)                    |  |                 | 1,188,854 |  |         |  | 1,585,139 | 
|- Others (iii)                                                 |  |                 | 362,171   |  |         |  | 470,695   | 
|                                                               |  |                 |           |  |         |  |           | 
|                                                               |  |                 | 1,555,635 |  |         |  | 2,063,922 | 
|                                                               |  |                 |           |  |         |  |           | 
|Total                                                          |  |                 | 1,994,635 |  |         |  | 2,463,475 | 
|                                                               |  |                 |           |  |         |  |           | 



|(i) | The carrying value of the deferred payment for acquisition of interests in Minerva is based on cash flows discounted using a rate of 7.5%.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Mining right compensation fee payable is provided in accordance with the Chinese government legislation on mining right compensation fee. The amount RMB1,585,139,000 is
payable by the Company by installment from 2013 to 2016. The remaining part amounting to RMB40,000,000 is used for Ordos to purchase Zhuanlongwans mining right.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | Others mainly comprised of provision for marketing service fee of RMB29,054,000 and provision for forecasted excessive supply for port and rail contracts of
RMB270,171,000, both arising from the acquisition of Gloucester.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



39. DEFERRED TAXATION



|                                                                          |  |                              |         |   |                            |  |          |                                                       |  |  |                                                      |   |  |            |          |   |                       |  |           |         |  |  |         |   |  |  |            |  
|------------------------------------------------------------------------- |  | ---------------------------- | ------- | - | -------------------------- |  | -------- | ----------------------------------------------------- |  |  | ---------------------------------------------------- | - |  | ---------- | -------- | - | --------------------- |  | --------- | ------- |  |  | ------- | - |  |  | ---------- | -
|                                                                          |  | Available-for-saleinvestment |         |   | Acceleratedtaxdepreciation |  |          | Fair
valueadjustment onmining 
rights(miningreserves) |  |  | Temporarydifferences 
onincome andexpensesrecognized |   |  | Tax losses |          |   | Cash flowhedgereserve |  |           | Total   | 
|                                                                          |  | RMB000                      |         |   | RMB000                    |  |          | RMB000                                               |  |  | RMB000                                              |   |  | RMB000    |          |   | RMB000               |  |           | RMB000 | 
|Balance at January 1, 2012                                                |  |                              | (23,615 | ) |                            |  | (231,407 | )                                                     |  |  | (2,183,756                                           | ) |  |            | (154,817 | ) |                       |  |          |         |  |  | 33,456  |   |  |  | (2,560,139 | )
|Effect on changes in accounting policy                                    |  |                              |        |   |                            |  |         |                                                       |  |  |                                                     |   |  |            | 78,431   |   |                       |  |          |         |  |  |        |   |  |  | 78,431     |  
|                                                                          |  |                              |         |   |                            |  |          |                                                       |  |  |                                                      |   |  |            |          |   |                       |  |           |         |  |  |         |   |  |  |            |  
|Balance at January 1, 2012 (restated)                                     |  |                              | (23,615 | ) |                            |  | (231,407 | )                                                     |  |  | (2,183,756                                           | ) |  |            | (76,386  | ) |                       |  |          |         |  |  | 33,456  |   |  |  | (2,481,708 | )
|Exchange re-alignment                                                     |  |                              |        |   |                            |  | (2,253   | )                                                     |  |  | (90,646                                              | ) |  |            | 191,400  |   |                       |  | 16,160    |         |  |  |        |   |  |  | 114,661    |  
|Acquisition of Beisu and Yangcun (note 44)                                |  |                              |        |   |                            |  |         |                                                       |  |  | (47,375                                              | ) |  |            | 4,109    |   |                       |  |          |         |  |  |        |   |  |  | (43,266    | )
|Acquisition of Gloucester (note 45)                                       |  |                              |        |   |                            |  |         |                                                       |  |  | (1,851,996                                           | ) |  |            | 778,477  |   |                       |  | 258,003   |         |  |  |        |   |  |  | (815,516   | )
|Charge (credit) to other comprehensive income                             |  |                              | 1,481   |   |                            |  |         |                                                       |  |  |                                                     |   |  |            |         |   |                       |  |          |         |  |  | (28,641 | ) |  |  | (27,160    | )
|Deferred tax arising from the restructuring of Australian subsidiaries    |  |                              |        |   |                            |  |         |                                                       |  |  |                                                     |   |  |            | (141,067 | ) |                       |  |          |         |  |  |        |   |  |  | (141,067   | )
|Charge (credit) to the consolidated income statement (note 12) (restated) |  |                              |        |   |                            |  | (9,227   | )                                                     |  |  | 538,989                                              |   |  |            | 41,045   |   |                       |  | 864,585   |         |  |  |        |   |  |  | 1,435,392  |  
|                                                                          |  |                              |         |   |                            |  |          |                                                       |  |  |                                                      |   |  |            |          |   |                       |  |           |         |  |  |         |   |  |  |            |  
|Balance at January 1, 2013 (restated)                                     |  |                              | (22,134 | ) |                            |  | (242,887 | )                                                     |  |  | (3,634,784                                           | ) |  |            | 797,578  |   |                       |  | 1,138,748 |         |  |  | 4,815   |   |  |  | (1,958,664 | )
|Exchange re-alignment                                                     |  |                              |        |   |                            |  | 84,982   |                                                       |  |  | 567,795                                              |   |  |            | (111,226 | ) |                       |  | (362,384  | )       |  |  | (53,900 | ) |  |  | 125,267    |  
|Acquisition of Hao Sheng (note 43)                                        |  |                              |        |   |                            |  |         |                                                       |  |  | (3,022,421                                           | ) |  |            |         |   |                       |  |          |         |  |  |        |   |  |  | (3,022,421 | )
|Charge (credit) to other comprehensive income                             |  |                              | (1,321  | ) |                            |  |         |                                                       |  |  |                                                     |   |  |            |         |   |                       |  |          |         |  |  | 395,395 |   |  |  | 394,074    |  
|Charge (credit) to the consolidated income statement (note 12)            |  |                              |        |   |                            |  | (364,114 | )                                                     |  |  | 665,772                                              |   |  |            | 209,418  |   |                       |  | 1,589,309 |         |  |  |        |   |  |  | 2,100,385  |  
|                                                                          |  |                              |         |   |                            |  |          |                                                       |  |  |                                                      |   |  |            |          |   |                       |  |           |         |  |  |         |   |  |  |            |  
|Balance at December 31, 2013                                              |  |                              | (23,455 | ) |                            |  | (522,019 | )                                                     |  |  | (5,423,638                                           | ) |  |            | 895,770  |   |                       |  | 2,365,673 |         |  |  | 346,310 |   |  |  | (2,361,359 | )
|                                                                          |  |                              |         |   |                            |  |          |                                                       |  |  |                                                      |   |  |            |          |   |                       |  |           |         |  |  |         |   |  |  |            |  

The temporary differences on income and expenses recognized mainly arose from unpaid provision of salaries and wages,
provisions of compensation fees for mining rights and land subsidence, restoration, rehabilitation and environmental costs and also included payments on certain expenses such as exploration costs and certain income in Australia.

The following is the analysis of the deferred tax balances for financial reporting purposes:



|                         |  |                 |            |   |         |  |            |  
|------------------------ |  | --------------- | ---------- | - | ------- |  | ---------- | -
|                         |  | At December 31, |           
|                         |  | 2013            |            |   | 2012    | 
|                         |  | RMB000         |            |   | RMB000 | 
|                         |  |                 | (restated) |  
|Deferred tax assets      |  |                 | 6,107,062  |   |         |  | 5,605,284  |  
|Deferred tax liabilities |  |                 | (8,468,421 | ) |         |  | (7,563,948 | )
|                         |  |                 |            |   |         |  |            |  
|                         |  |                 | (2,361,359 | ) |         |  | (1,958,664 | )
|                         |  |                 |            |   |         |  |            |  

At the balance sheet date, the Group has unused tax losses of RMB17,491 million (2012: RMB5,930 million) contributed by
the subsidiaries available for offset against future profits. RMB2,366 million deferred tax asset has been recognized (2012: RMB1,138 million) for such tax losses. No deferred tax asset has been recognized in respect of the RMB9,605 million (2012:
RMB2,134 million) due to the unpredictability of future profit streams. Included in unrecognized tax losses are losses of RMB357 million that will expire in 2014, losses of RMB517 million that will expire in 2015, loss of RMB282 million that will
expire in 2016 and losses of RMB680 million that will expire in 2017 (2012: losses of RMB298 million that will expire in 2013, losses of RMB357 million that will expire in 2014, losses of RMB517 million that will expire in 2015 and losses of RMB282
million that will expire in 2016). Other losses may be carried forward indefinitely.

By reference to financial budgets, management believes
that there will be sufficient future profits for the realization of deferred tax assets which have been recognized in respect of tax losses.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



40. SHAREHOLDERS EQUITY

Share capital

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



|                                                          |  |                                 |               |  |                                                                      |  |               |         |  |  |               | 
|--------------------------------------------------------- |  | ------------------------------- | ------------- |  | -------------------------------------------------------------------- |  | ------------- | ------- |  |  | ------------- | 
|                                                          |  | Domesticinvested sharesA shares |               |  | Foreigninvested sharesH
shares(including H sharesrepresented by ADS) |  |               | Total   | 
|                                                          |  |                                 |              
|Number of shares                                          |  |                                 |               |  |                                                                      |  |               |         |  |  |               | 
|At January 1, 2012, January 1, 2013 and December 31, 2013 |  |                                 | 2,960,000,000 |  |                                                                      |  | 1,958,400,000 |         |  |  | 4,918,400,000 | 
|                                                          |  |                                 |               |  |                                                                      |  |               |         |  |  |               | 
|                                                          |  |                                 |              
|                                                          |  | Domesticinvested sharesA shares |               |  | Foreigninvested sharesH shares(including H sharesrepresented by ADS) |  |               | Total   | 
|                                                          |  | RMB000                         |               |  | RMB000                                                              |  |               | RMB000 | 
|Registered, issued and fully paid                         |  |                                 |               |  |                                                                      |  |               |         |  |  |               | 
|At January 1, 2012, January 1, 2013 and December 31, 2013 |  |                                 | 2,960,000     |  |                                                                      |  | 1,958,400     |         |  |  | 4,918,400     | 
|                                                          |  |                                 |               |  |                                                                      |  |               |         |  |  |               | 

Each share has a par value of RMB1.

The Company has completed the implementation of the share reform plan on April 3, 2006 and 2,600,000,000 the non-tradable legal person shares held by the Parent Company become tradable shares. The
Parent Company guaranteed that it would not trade these shares in the market within 48 months from that day. On September, 2013, all the commitment made by the Parent Company as part of the share reform plan was fulfilled. The application for the
right of shares trading in the market was approved by local legislation, and hence those shares held by the Parent Company are tradable in the market.

Reserves

Future Development Fund

Pursuant to regulation in the PRC, the Company, Shanxi Tianchi and Heze are required to transfer an annual amount to a future development fund at RMB6
per tonne of raw coal mined (Xintai and Ordos: RMB6.5 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.

From 2008 onwards, Shanxi Tianchi is required to transfer an additional amount at RMB5 per tonne of raw coal mined as coal mine transformation fund.
Pursuant to the Shanxi Provincial Governments decision, coal mine transformation fund would be suspended since August 1, 2013.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

40. SHAREHOLDERS EQUITYContinued



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 July 1, 2004 to the reform specific
development fund for the future improvement of the mining facilities and is not distributable to shareholders. No further transfer to the reform specific development fund is required from January 1, 2008.

In accordance with the regulations of the State Administration of Work Safety, the Company has a commitment to incur RMB8 (Shanxi Tianchi: RMB50, Xintai
and Ordos: increased from RMB7 to RMB15 from February 1, 2012 onwards) for each tonne of raw coal mined from May 1, 2004 which will be used for enhancement of safety production environment and improvement of facilities (Work Safety
Cost). From February 1, 2012 onwards, the work safety cost increased to RMB15 per tonne. In prior years, the work safety expenditures are recognized only when acquiring the fixed assets or incurring other work safety expenditures. The
Company, Heze, Shanxi Tianchi, Xintai and Ordos 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, the Companys subsidiaries, Hua Ju Energy, Shanxi Tianhao and Yulin, have 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 RMB10 million and RMB100 million (included); 0.5% of the actual sales income for the year between RMB100 million and RMB1 billion
(included); 0.2% of the actual sales income for the year above RMB1 billion. The unutilized Work Safety Cost at December 31, 2013 was RMB1,298,554,000 (2012: RMB1,019,799,000).

Statutory Common Reserve Fund

The Company and its subsidiaries in the PRC have to set aside 10% of its profit 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 of the 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 profit 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 December 31, 2013 is the retained earnings computed under IFRS which amounted to approximately
RMB26,492,774,000 (At December 31, 2012: RMB23,482,750,000 (restated)).



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



41. CAPITAL RISK MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity
balance. The Groups overall strategy remains unchanged from prior year.

The capital structure of the Group consists of debt, which
includes the borrowings disclosed in note 35 and equity attributable to equity holders of the Company, comprising issued share capital, reserves and retained earnings, and amounted to RMB95,753,689,000 (2012: RMB86,526,416,000 (restated)) as at
December 31, 2013.

The directors of the Company review the capital structure regularly. As part of this review, the directors of the
Company assess the annual budget prepared by the accounting and treasury department and consider and evaluate the cost of capital and the risks associated with each class of capital. The Group will balance its capital structure through the payment
of dividends, issue of new shares and new debts or the repayment of existing debts.

42. FINANCIAL INSTRUMENTS

42a. Categories of financial instruments



|                                                                                                        |  |                 |            |  |         |  |            | 
|------------------------------------------------------------------------------------------------------- |  | --------------- | ---------- |  | ------- |  | ---------- | 
|                                                                                                        |  | At December 31, |           
|                                                                                                        |  | 2013            |            |  | 2012    | 
|                                                                                                        |  | RMB000         |            |  | RMB000 | 
|Financial assets                                                                                        |  |                 |            |  |         |  |            | 
|Loans and receivables (including cash and cash equivalents)                                             |  |                 | 28,163,818 |  |         |  | 27,145,339 | 
|Available-for-sale financial assets                                                                     |  |                 | 211,559    |  |         |  | 207,076    | 
|Derivative financial instruments                                                                        |  |                 | 16,651     |  |         |  | 90,731     | 
|Royalty receivable (financial assets at fair value through profit or loss)                              |  |                 | 1,134,374  |  |         |  | 1,349,447  | 
|                                                                                                        |  |                
|Financial liabilities                                                                                   |  |                 |            |  |         |  |            | 
|Amortized cost                                                                                          |  |                 | 67,021,023 |  |         |  | 57,348,667 | 
|Derivative financial instruments                                                                        |  |                 | 315,111    |  |         |  | 128,077    | 
|Contingent value rights shares liabilities (financial liabilities at fair value through profit or loss) |  |                 | 1,408,729  |  |         |  | 1,432,188  | 
|                                                                                                        |  |                 |            |  |         |  |            | 

42b. Financial risk management objectives and policies

The Groups major financial instruments include available-for-sale equity instruments, bills and accounts receivable, royalty receivable, other
current assets such as other receivables, bank balances and cash, term deposits, restricted cash, long term receivables, derivative financial instruments, bills and accounts payable, other payables, bank and other borrowings, amount due to Parent
Company and its subsidiary companies, contingent value rights shares liabilities, finance lease liabilities and guaranteed notes. Details of these financial instruments are disclosed in respective notes. The risks associated with these financial
instruments and the policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. There has been no significant change
to the Groups exposure to market risk or the manner in which it manages and measures the risk.



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YANZHOU COAL MINING COMPANY LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued



Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group.

At December 31, 2013 and 2012, the Groups maximum exposure to credit risk which will cause a financial loss to the Group arising from the failure to perform their obligations in relation to
each class of recognized financial assets is the carrying amount of those assets as stated in the consolidated balance sheet.

In order to
minimise the credit risk, the management of the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In
addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Company consider that the
Groups credit risk is significantly reduced.

The Group maintains its cash and cash equivalents with reputable banks and Yankuang Group
Finance Group Company Limited (see note 27). Therefore, the directors consider that the credit risk for such is minimal.

The Group generally
grants the customers with long-relationship credit terms not exceeding 180 days, depending on the situations of the individual customers. For small to medium sized new customers, the Group generally requires them to pay for the products before
delivery.

Most of the Groups domestic sales are sales to electric power plants, metallurgical companies, construction material
producers and railway companies. The Group generally has established long-term and stable relationships with these companies. The Group also sells its coal to provincial and city fuel trading companies.

As the Groups PRC operation does not currently have direct export rights, all of its export sales must be made through National Coal Corporation,
Shanxi Coal Corporation or Minmetals Trading. The qualities, prices and final customer destinations of the Groups export sales are determined by the Group, National Coal Corporation, Shanxi Coal Corporation or Minmetals Trading.

For the years ended December 31, 2013, 2012 and 2011, net sales to the Groups five largest customers accounted for approximately 16.5%, 19.4%
and, 19.4% respectively, of the Groups total revenue. Net sales to the Groups largest customer accounted for 5.8%, 6.3%, and 8.5% of the Groups net revenue for the years ended December 31, 2013, 2012 and 2011 respectively. The
Groups largest customer was Huadian Power International Corporation Limited (Huadian) for the years ended December 31, 2013, 2012 and 2011.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued

Credit riskcontinued



Details of the accounts receivable from the five customers with the largest receivable balances at
December 31, 2013 and 2012 are as follows:



|                                 |  |                                   |       |   |      |  |       |  
|-------------------------------- |  | --------------------------------- | ----- | - | ---- |  | ----- | -
|                                 |  | Percentage of accounts receivable |      
|                                 |  | At December 31,                   |      
|                                 |  | 2013                              |       |   | 2012 | 
|                                 |  |                                  
|Five largest receivable balances |  |                                   | 28.45 | % |      |  | 28.86 | %
|                                 |  |                                   |       |   |      |  |       |  

The management considers the strong financial background and good creditability of these customers, and there is no
significant uncovered credit risk.

The table below shows the credit limit and balance of 5 major counterparties at the balance sheet date:



|             |  |           |  |              |                |  |                 |  |         |              |  |  |                 |  |  |  |         | 
|------------ |  | --------- |  | ------------ | -------------- |  | --------------- |  | ------- | ------------ |  |  | --------------- |  |  |  | ------- | 
|             |  |           |  | 31.12.2013   |                |  | 31.12.2012      | 
|Counterparty |  | Location  |  | Credit limit |                |  | Carrying amount |  |         | Credit limit |  |  | Carrying amount | 
|             |  |           |  | RMB000      |                |  | RMB000         |  |         | RMB000      |  |  | RMB000         | 
|Company A    |  | China     |  |              | Not applicable |  |                 |  | 151,266 |              |  |  | Not applicable  |  |  |  | 72,000  | 
|Company B    |  | China     |  |              | Not applicable |  |                 |  | 76,100  |              |  |  | Not applicable  |  |  |  |        | 
|Company C    |  | Japan     |  |              | Not applicable |  |                 |  | 73,369  |              |  |  | Not applicable  |  |  |  |        | 
|Company D    |  | Singapore |  |              | Not applicable |  |                 |  | 60,007  |              |  |  | Not applicable  |  |  |  |        | 
|Company E    |  | Hong Kong |  |              | Not applicable |  |                 |  | 57,331  |              |  |  | Not applicable  |  |  |  |        | 
|Company F    |  | Japan     |  |              | Not applicable |  |                 |  |        |              |  |  | Not applicable  |  |  |  | 54,513  | 
|Company G    |  | Australia |  |              | Not applicable |  |                 |  |        |              |  |  | Not applicable  |  |  |  | 50,477  | 
|Company H    |  | Japan     |  |              | Not applicable |  |                 |  |        |              |  |  | Not applicable  |  |  |  | 49,156  | 
|Company I    |  | Japan     |  |              | Not applicable |  |                 |  |        |              |  |  | Not applicable  |  |  |  | 41,971  | 
|             |  |           |  |              |                |  |                 |  |         |              |  |  |                 |  |  |  |         | 
|             |  |           |  |              |                |  |                 |  | 418,073 |              |  |  |                 |  |  |  | 268,117 | 
|             |  |           |  |              |                |  |                 |  |         |              |  |  |                 |  |  |  |         | 

The Groups geographical concentration of credit risk is mainly in East Asia (excluding the PRC) and Australia. As
at December 31, 2013 and 2012, over 51% and 57% of the Groups total trade receivables were from Australia and from East Asia (excluding the PRC) respectively.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued



Market risk

(i) Currency risk

The Groups sales are denominated mainly in the functional currency of the relevant group entity making the sale, whilst costs are mainly
denominated in the group entitys functional currency. Accordingly, there is no significant exposure to foreign currency risk.

The
carrying amounts of the Groups foreign currency denominated monetary assets and monetary liabilities in currencies other than the functional currencies of the relevant group entities at the balance sheet date are as follows:



|                                                                                         |  |             |            |  |         |  |            |         |  |  |           |  |  |  |           | 
|---------------------------------------------------------------------------------------- |  | ----------- | ---------- |  | ------- |  | ---------- | ------- |  |  | --------- |  |  |  | --------- | 
|                                                                                         |  | Liabilities |            |  | Assets  | 
|                                                                                         |  | 2013        |            |  | 2012    |  |            | 2013    |  |  | 2012      | 
|                                                                                         |  | RMB000     |            |  | RMB000 |  |            | RMB000 |  |  | RMB000   | 
|United States Dollar (USD)                                                             |  |             | 30,840,426 |  |         |  | 18,294,655 |         |  |  | 5,278,923 |  |  |  | 2,267,878 | 
|Euro (EUR)                                                                             |  |             |           |  |         |  | 1,083,858  |         |  |  | 12,564    |  |  |  | 141       | 
|Hong Kong Dollar (HKD)                                                                 |  |             |           |  |         |  |           |         |  |  | 31        |  |  |  | 58        | 
|Notional amounts of sell USD foreign exchange contracts used for hedging                 |  |             | 1,782,864  |  |         |  | 1,599,728  |         |  |  | 1,102,516 |  |  |  | 4,536,734 | 
|Notional amount of buy EUR foreign exchange contracts used for hedging                   |  |             |           |  |         |  |           |         |  |  | 167,339   |  |  |  | 165,711   | 
|Notional amount of buy British pound (GBP) foreign exchange contracts used for hedging |  |             |           |  |         |  |           |         |  |  | 1,730     |  |  |  | 2,919     | 
|                                                                                         |  |             |            |  |         |  |            |         |  |  |           |  |  |  |           | 

The sales of the Groups subsidiaries in Australia are mainly export sales and some of their fixed assets are
imported from overseas. Their foreign exchange hedging policy is disclosed in note 36. The Groups operations in the PRC do not adopt any foreign exchange hedging policy.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued

Market riskcontinued

(i) Currency riskcontinued



Sensitivity analysis

The Group is mainly exposed to the fluctuation against the currency of United States Dollar.

The
following table details the Groups sensitivity to a 5% increase and decrease in RMB against relevant foreign currencies. 5% represents managements assessment of reasonably possible changes in foreign exchange rates over the period until
the next annual balance sheet date. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year end for a 5% change in foreign currency rates and also assumes all other
risk variables remained constant. The sensitivity analysis includes loans to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower.



|                                                         |  |                     |         |   |         |  |          |  
|-------------------------------------------------------- |  | ------------------- | ------- | - | ------- |  | -------- | -
|                                                         |  | USD Impact (note i) |        
|                                                         |  | 2013                |         |   | 2012    | 
|                                                         |  | RMB000             |         |   | RMB000 | 
|Increase (Decrease) to profit or loss                    |  |                     |         |   |         |  |          |  
|- if RMB weakens against respective foreign currency     |  |                     | (30,799 | ) |         |  | 218,169  |  
|- if RMB strengthens against respective foreign currency |  |                     | 30,799  |   |         |  | (218,169 | )
|                                                         |  |                     |         |   |         |  |          |  



|                                                         |  |                      |            |   |                      |  |          |         |  |  |         |   |  |  |   | 
|-------------------------------------------------------- |  | -------------------- | ---------- | - | -------------------- |  | -------- | ------- |  |  | ------- | - |  |  | - | 
|                                                         |  | USD Impact (note ii) |            |   | EUR Impact (note ii) | 
|                                                         |  | 2013                 |            |   | 2012                 |  |          | 2013    |  |  | 2012    |  
|                                                         |  | RMB000              |            |   | RMB000              |  |          | RMB000 |  |  | RMB000 |  
|                                                         |  |                      |            |  
|Increase (Decrease) to profit or loss                    |  |                      |            |   |                      |  |          |         |  |  |         |   |  |  |   | 
|- if AUD weakens against respective foreign currency     |  |                      | 76,244     |   |                      |  | (758,859 | )       |  |  |        |   |  |  |  | 
|- if AUD strengthens against respective foreign currency |  |                      | (76,244    | ) |                      |  | 758,859  |         |  |  |        |   |  |  |  | 
|                                                         |  |                      |            |  
|Increase (Decrease) to shareholders equity              |  |                      |            |   |                      |  |          |         |  |  |         |   |  |  |   | 
|- if AUD weakens against respective foreign currency     |  |                      | (1,039,514 | ) |                      |  | (538,200 | )       |  |  | 5,889   |   |  |  |  | 
|- if AUD strengthens against respective foreign currency |  |                      | 1,039,514  |   |                      |  | 538,200  |         |  |  | (5,889  | ) |  |  |  | 
|                                                         |  |                      |            |   |                      |  |          |         |  |  |         |   |  |  |   | 



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued

Market riskcontinued

(i) Currency riskcontinued





Notes:



|(i) | This is mainly attributable to the exposure of the Groups outstanding bank deposit and loans denominated in USD.
|--- | -----------------------------------------------------------------------------------------------------------------



|(ii) | This is mainly attributable to the exposure of the Groups outstanding foreign currency bank borrowings and derivative financial instruments denominated in a
currency other than the functional currency of the borrower.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In managements opinion, the sensitivity analysis is
unrepresentative of the inherent foreign exchange risk as the year end exposure does not reflect the exposure during the year.

(ii) Interest rate risk

The Group is exposed to cash flow interest rate risk in relation to variable-rate bank balances, term deposits, restricted cash (note 17) and variable rate borrowings (note 35).

The interest rate hedging policy of the Group is disclosed in note 36.

The Groups exposures to interest rate risk on financial assets and financial liabilities are detailed in the liquidity risk section of this note. The Groups cash flow interest rate risk is
mainly concentrated on the fluctuation of the PBOC arising from the Groups RMB borrowings and the LIBOR arising from the Groups foreign currencies borrowings.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued

Market riskcontinued

(ii) Interest rate riskcontinued



Sensitivity Analysis

The following table details the Groups sensitivity to a change of 100 basis points in the interest rate, assuming the financial instruments outstanding at the end of the reporting period were
outstanding for the whole year and all the variables were held constant. It includes the interest rate fluctuation of the abovementioned PBOC rate and LIBOR.



|                                            |  |         |          |   |         |  |          |  
|------------------------------------------- |  | ------- | -------- | - | ------- |  | -------- | -
|                                            |  | 2013    |          |   | 2012    | 
|                                            |  | RMB000 |          |   | RMB000 | 
|                                            |  |        
|Increase (Decrease) to profit and loss      |  |         |          |   |         |  |          |  
|-If increases by 100 basis points           |  |         | (135,259 | ) |         |  | (176,676 | )
|-If decreases by 100 basis points           |  |         | 135,259  |   |         |  | 176,676  |  
|                                            |  |        
|Increase (Decrease) to shareholders equity |  |         |          |   |         |  |          |  
|-If increases by 100 basis points           |  |         | (114,905 | ) |         |  | (153,106 | )
|-If decreases by 100 basis points           |  |         | 114,905  |   |         |  | 153,106  |  
|                                            |  |         |          |   |         |  |          |  

(iii) Other price risk

In addition to the above risks relating to financial instruments, the Group is exposed to equity price risk through investment in listed equity securities and also to price risk in non financial
instruments such as steel and metals (the Groups major raw materials). The Group currently does not have any arrangement to hedge the price risk exposure of its investment in equity securities and its purchase of raw materials. The
Groups exposure to equity price risk through investment in listed equity securities and also the result of the sensitivity analysis is not significant.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued



Liquidity risk

In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Groups operations and mitigate the
effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The following table details the Groups remaining contractual maturity for its financial liabilities. For non-derivative financial liabilities, the
table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

Liquidity and interest risk tables



|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|--------------------------------------------------------- |  | --------------------------------------- | ----------- |  | ----------------- |  | ---------- | --------- |  |  | ----------------- |  |  | --------- | ---------- |  | -------- |  | ---------- | -------------------------- |  |  | ---------------------- |  |  |  | ---------- |  |  |  | ---------- | 
|                                                          |  | Weightedaverage 
effectiveinterest rate |             |  | Less than3 months |  |            | 3-6months |  |  | 6 monthsto 1 year |  |  | 1-5 years |            |  | 5+ years |  |            | Totalundiscountedcash flow |  |  | Carryingamount at12.31 | 
|                                                          |  | %                                       |             |  | RMB000           |  |            | RMB000   |  |  | RMB000           |  |  | RMB000   |            |  | RMB000  |  |            | RMB000                    |  |  | RMB000                | 
|2013                                                      |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Non-derivative financial liabilities                      |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Bills and accounts payables                               |  |                                         | N/A         |  |                   |  | 2,716,675  |           |  |  |                  |  |  |           |           |  |          |  |           |                            |  |  |                       |  |  |  | 2,716,675  |  |  |  | 2,716,675  | 
|Other payables                                            |  |                                         | N/A         |  |                   |  | 7,252,136  |           |  |  |                  |  |  |           |           |  |          |  |           |                            |  |  |                       |  |  |  | 7,252,136  |  |  |  | 7,252,136  | 
|Amount due to Parent Company and its subsidiary companies |  |                                         | N/A         |  |                   |  | 44,737     |           |  |  |                  |  |  |           |           |  |          |  |           |                            |  |  |                       |  |  |  | 44,737     |  |  |  | 44,737     | 
|USD Guaranteed note                                       |  |                                         | 4.46%-5.73% |  |                   |  | 78,628     |           |  |  | 78,628            |  |  |           | 157,257    |  |          |  | 3,808,470  |                            |  |  | 4,024,577              |  |  |  | 8,147,560  |  |  |  | 6,096,667  | 
|RMB Guaranteed note                                       |  |                                         | 4.42%-6.80% |  |                   |  | 1,267,000  |           |  |  |                  |  |  |           | 5,537,792  |  |          |  | 1,969,000  |                            |  |  | 4,990,000              |  |  |  | 13,763,792 |  |  |  | 10,956,917 | 
|Loan pledged by machineries                               |  |                                         | 10.40%      |  |                   |  | 46,800     |           |  |  | 46,800            |  |  |           | 93,600     |  |          |  | 1,948,800  |                            |  |  | 610,770                |  |  |  | 2,746,770  |  |  |  | 1,800,000  | 
|Finance lease liabilities                                 |  |                                         | 3.00%-5.60% |  |                   |  | 14,404     |           |  |  | 14,404            |  |  |           | 28,809     |  |          |  | 235,109    |                            |  |  | 22,741                 |  |  |  | 315,467    |  |  |  | 267,492    | 
|Bank borrowings - variable rate                           |  |                                         | 1.00%-7.05% |  |                   |  | 368,587    |           |  |  | 1,529,536         |  |  |           | 4,069,209  |  |          |  | 15,102,407 |                            |  |  | 18,924,915             |  |  |  | 39,994,654 |  |  |  | 36,253,935 | 
|Long-term payable                                         |  |                                         | 6.22%-8.9%  |  |                   |  | 1,300      |           |  |  |                  |  |  |           | 520,776    |  |          |  | 1,565,620  |                            |  |  |                       |  |  |  | 2,087,696  |  |  |  | 1,632,464  | 
|Contingent value rights shares liabilities                |  |                                         | N/A         |  |                   |  | 1,427,766  |           |  |  |                  |  |  |           |           |  |          |  |           |                            |  |  |                       |  |  |  | 1,427,766  |  |  |  | 1,408,729  | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|                                                          |  |                                         |             |  |                   |  | 13,218,033 |           |  |  | 1,669,368         |  |  |           | 10,407,443 |  |          |  | 24,629,406 |                            |  |  | 28,573,003             |  |  |  | 78,497,253 |  |  |  | 68,429,752 | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|                                                          |  |                                         |             |  |                   |  |            |          
|Financial guarantees issued                               |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Maximum amount guaranteed (note)                          |  |                                         | N/A         |  |                   |  |           |           |  |  |                  |  |  |           |           |  |          |  |           |                            |  |  | 1,156,509              |  |  |  | 1,156,509  |  |  |  |           | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|                                                          |  |                                         |             |  |                   |  |            |          
|Derivative financial instruments  gross settlement       |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Forward foreign exchange contracts - Outflow              |  |                                         | N/A         |  |                   |  | 1,020,926  |           |  |  | 297,288           |  |  |           | 464,651    |  |          |  | 1,993,723  |                            |  |  |                       |  |  |  | 3,776,588  |  |  |  | 3,776,588  | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|                                                          |  |                                         |             |  |                   |  |            |          
|Derivative financial instruments  net settlement         |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Interest rate swap contracts                              |  |                                         | N/A         |  |                   |  | 11,194     |           |  |  | 11,194            |  |  |           | 21,144     |  |          |  |           |                            |  |  |                       |  |  |  | 43,532     |  |  |  | 43,532     | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |            |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 

Note: the amount presented is the maximum contractual presented under guarantees issued.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42b. Financial risk
management objectives and policiescontinued

Liquidity riskcontinued

Liquidity and interest risk tablescontinued



|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|--------------------------------------------------------- |  | --------------------------------------- | ----------- |  | ----------------- |  | ---------- | --------- |  |  | ----------------- |  |  | --------- | --------- |  | -------- |  | ---------- | -------------------------- |  |  | ---------------------- |  |  |  | ---------- |  |  |  | ---------- | 
|                                                          |  | Weightedaverage 
effectiveinterest rate |             |  | Less than3
months |  |            | 3-6months |  |  | 6 monthsto 1
year |  |  | 1-5 years |           |  | 5+ years |  |            | Totalundiscountedcash flow |  |  | Carryingamount at12.31 | 
|                                                          |  | %                                       |             |  | RMB000           |  |            | RMB000   |  |  | RMB000           |  |  | RMB000   |           |  | RMB000  |  |            | RMB000                    |  |  | RMB000                | 
|2012                                                      |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Non-derivative financial liabilities                      |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Bills and accounts payables                               |  |                                         | N/A         |  |                   |  | 6,793,293  |           |  |  | 18,467            |  |  |           |          |  |          |  |           |                            |  |  |                       |  |  |  | 6,811,760  |  |  |  | 6,811,760  | 
|Other payables                                            |  |                                         | N/A         |  |                   |  | 7,454,033  |           |  |  |                  |  |  |           |          |  |          |  |           |                            |  |  |                       |  |  |  | 7,454,033  |  |  |  | 7,454,033  | 
|Amount due to Parent Company and its subsidiary companies |  |                                         | N/A         |  |                   |  | 93,712     |           |  |  |                  |  |  |           |          |  |          |  |           |                            |  |  |                       |  |  |  | 93,712     |  |  |  | 93,712     | 
|USD Guaranteed note                                       |  |                                         | 4.62%-5.80% |  |                   |  | 81,058     |           |  |  | 81,058            |  |  |           | 162,116   |  |          |  | 4,054,258  |                            |  |  | 4,349,975              |  |  |  | 8,728,465  |  |  |  | 6,284,835  | 
|RMB Guaranteed note                                       |  |                                         | 4.42%-5.00% |  |                   |  |           |           |  |  |                  |  |  |           | 240,000   |  |          |  | 1,960,000  |                            |  |  | 4,990,000              |  |  |  | 7,190,000  |  |  |  | 4,953,000  | 
|Loan pledged by machineries                               |  |                                         | 6.56%       |  |                   |  | 32,800     |           |  |  | 2,015,367         |  |  |           |          |  |          |  |           |                            |  |  |                       |  |  |  | 2,048,167  |  |  |  | 2,000,000  | 
|Finance lease liabilities                                 |  |                                         | 7.74%       |  |                   |  | 11,207     |           |  |  | 11,207            |  |  |           | 22,415    |  |          |  | 193,473    |                            |  |  | 27,090                 |  |  |  | 265,392    |  |  |  | 232,690    | 
|Bank borrowings - variable rate                           |  |                                         | 1.06%-6.90% |  |                   |  | 599,726    |           |  |  | 1,501,707         |  |  |           | 3,717,194 |  |          |  | 7,085,626  |                            |  |  | 17,933,866             |  |  |  | 30,838,119 |  |  |  | 27,525,857 | 
|Long-term payable                                         |  |                                         | 4.98%-6.50% |  |                   |  | 1,583      |           |  |  |                  |  |  |           | 521,163   |  |          |  | 2,086,372  |                            |  |  |                       |  |  |  | 2,609,118  |  |  |  | 1,992,780  | 
|Contingent value rights shares liabilities                |  |                                         | N/A         |  |                   |  |           |           |  |  |                  |  |  |           |          |  |          |  | 1,432,188  |                            |  |  |                       |  |  |  | 1,432,188  |  |  |  | 1,432,188  | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|                                                          |  |                                         |             |  |                   |  | 15,067,412 |           |  |  | 3,627,806         |  |  |           | 4,662,888 |  |          |  | 16,811,917 |                            |  |  | 27,300,931             |  |  |  | 67,470,954 |  |  |  | 58,780,855 | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Financial guarantees issued                               |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Maximum amount guaranteed (note)                          |  |                                         | N/A         |  |                   |  |           |           |  |  |                  |  |  |           |          |  |          |  |           |                            |  |  | 2,212,915              |  |  |  | 2,212,915  |  |  |  |           | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Derivative financial instruments  gross settlement       |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Forward foreign exchange contracts - Outflow              |  |                                         | N/A         |  |                   |  | 1,580,690  |           |  |  |                  |  |  |           | 19,038    |  |          |  |           |                            |  |  |                       |  |  |  | 1,599,728  |  |  |  | 1,599,728  | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Derivative financial instruments  net settlement         |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 
|Interest rate swap contracts                              |  |                                         | N/A         |  |                   |  | 19,462     |           |  |  | 19,462            |  |  |           | 40,006    |  |          |  | 35,491     |                            |  |  |                       |  |  |  | 114,421    |  |  |  | 114,421    | 
|                                                          |  |                                         |             |  |                   |  |            |           |  |  |                   |  |  |           |           |  |          |  |            |                            |  |  |                        |  |  |  |            |  |  |  |            | 

Note: the amount presented is the maximum contractual presented under guarantees issued.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42c. Fair values



The fair value of available-for-sales investment is determined with reference to quoted market price.
The fair values of the forward foreign exchange contracts are estimated based on the discounted cash flows between the contract forward rate and spot forward rate. The fair values of interest rate swap contracts are estimated based on the discounted
cash flows between the contract floating rate and contract fixed rate. The fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.

The directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortized cost in the consolidated
financial statements approximate their fair values.

Fair values of financial assets and financial liabilities are determined as follows:

The following table presents the carrying value of financial instruments measured at fair value across the three levels of the fair value
hierarchy. The levels of fair value are defined as follows:



|         |  |                                                                                                                                                                                                                                     
|-------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Level 1: |  | fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets and liabilities;                                                                                                   
|         | 
|Level 2: |  | fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
|         | 
|Level 3: |  | fair value measurements are those derived from valuation techniques that include inputs for the assets or liability that are not based on observable market data (unobservable
inputs).                                             



|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|---------------------------------------------------------- |  | ------- | --------- |  | ------- |  | ------- | ------- |  |  | -------------------- |  |  |  | --------- | 
|                                                           |  | Level 1 |           |  | Level 2 |  |         | Level 3 |  |  | At December 
31Total | 
|                                                           |  | RMB000 |           |  | RMB000 |  |         | RMB000 |  |  | RMB000              | 
|2013                                                       |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Assets                                                     |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Available-for-sale investments                             |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Investments in securities listed on the SSE              |  |         | 172,855   |  |         |  |        |         |  |  |                     |  |  |  | 172,855   | 
|Derivative financial instruments                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Forward foreign exchange contracts                       |  |         |          |  |         |  | 13,062  |         |  |  |                     |  |  |  | 13,062    | 
|- Collar option                                            |  |         |          |  |         |  | 3,589   |         |  |  |                     |  |  |  | 3,589     | 
|- Royalty receivable                                       |  |         |          |  |         |  |        |         |  |  | 1,134,374            |  |  |  | 1,134,374 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         | 172,855   |  |         |  | 16,651  |         |  |  | 1,134,374            |  |  |  | 1,323,880 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         |           | 
|Liabilities                                                |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Derivative financial instruments                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Forward foreign exchange contracts                       |  |         |          |  |         |  | 181,358 |         |  |  |                     |  |  |  | 181,358   | 
|- Collar option                                            |  |         |          |  |         |  | 90,221  |         |  |  |                     |  |  |  | 90,221    | 
|- Interest rate swap contracts                             |  |         |          |  |         |  | 43,532  |         |  |  |                     |  |  |  | 43,532    | 
|Financial liabilities at fair value through profit or loss |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Contingent value rights shares liabilities               |  |         | 1,408,729 |  |         |  |        |         |  |  |                     |  |  |  | 1,408,729 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         | 1,408,729 |  |         |  | 315,111 |         |  |  |                     |  |  |  | 1,723,840 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

42. FINANCIAL INSTRUMENTSContinued

42c. Fair
valuescontinued



|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|---------------------------------------------------------- |  | ------- | --------- |  | ------- |  | ------- | ------- |  |  | -------------------- |  |  |  | --------- | 
|                                                           |  | Level 1 |           |  | Level 2 |  |         | Level 3 |  |  | At December 
31Total | 
|                                                           |  | RMB000 |           |  | RMB000 |  |         | RMB000 |  |  | RMB000              | 
|2012                                                       |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Assets                                                     |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Available-for-sale investments                             |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Investments in securities listed on the SSE              |  |         | 167,572   |  |         |  |        |         |  |  |                     |  |  |  | 167,572   | 
|Derivative financial instruments                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Forward foreign exchange contracts                       |  |         |          |  |         |  | 76,640  |         |  |  |                     |  |  |  | 76,640    | 
|- Collar option                                            |  |         |          |  |         |  | 14,091  |         |  |  |                     |  |  |  | 14,091    | 
|Financial assets at fair value through profit or loss      |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Royalty receivable                                       |  |         |          |  |         |  |        |         |  |  | 1,349,447            |  |  |  | 1,349,447 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         | 167,572   |  |         |  | 90,731  |         |  |  | 1,349,447            |  |  |  | 1,607,750 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         |           | 
|Liabilities                                                |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|Derivative financial instruments                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Forward foreign exchange contracts                       |  |         |          |  |         |  | 13,656  |         |  |  |                     |  |  |  | 13,656    | 
|- Interest rate swap contracts                             |  |         |          |  |         |  | 114,421 |         |  |  |                     |  |  |  | 114,421   | 
|Financial liabilities at fair value through profit or loss |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|- Contingent value rights shares liabilities               |  |         | 1,432,188 |  |         |  |        |         |  |  |                     |  |  |  | 1,432,188 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 
|                                                           |  |         | 1,432,188 |  |         |  | 128,077 |         |  |  |                     |  |  |  | 1,560,265 | 
|                                                           |  |         |           |  |         |  |         |         |  |  |                      |  |  |  |           | 

In 2013 and 2012, there are no change in categories between level 1 and level 2 and no movement from or into level 3. For
more information about contingent value rights shares liabilities, please refer to note 19.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

43. ACQUISITION OF HAO SHENG



On January 31, 2013, the Company completed the acquisition of 74.82% equity interest in Hao Sheng,
the purpose of acquisition is to obtain the mining rights of Shilawusu Coal Field in the name of Hao Sheng. The acquisition was presented as purchases of assets and liabilities, such that no goodwill was recognized.

The net assets acquired on the acquisition date are as follows:



|                                                                             |  |                  |            |  
|---------------------------------------------------------------------------- |  | ---------------- | ---------- | -
|                                                                             |  | Carrying amounts |           
|                                                                             |  | RMB000          |           
|Bank balances and cash                                                       |  |                  | 223,427    |  
|Prepayments and other receivables                                            |  |                  | 4,539      |  
|Property, plant and equipment, net                                           |  |                  | 302,205    |  
|Intangible assets                                                            |  |                  | 12,089,682 |  
|Other current liabilities                                                    |  |                  | (59,159    | )
|Deferred taxation                                                            |  |                  | (3,022,421 | )
|                                                                             |  |                  |            |  
|Net assets acquired                                                          |  |                  | 9,538,273  |  
|Non-controlling interest arising from acquisition                            |  |                  | (2,401,737 | )
|                                                                             |  |                  |            |  
|                                                                             |  |                  | 7,136,536  |  
|                                                                             |  |                  |            |  
|                                                                             | 
|Considerations:                                                              |  |                  |            |  
|Cash paid on acquisition                                                     |  |                  | 1,025,516  |  
|Investment deposits and transaction costs paid for acquisition in prior year |  |                  | 2,982,805  |  
|                                                                             |  |                  |            |  
|Cash outflow for payment on acquisition                                      |  |                  | 4,008,321  |  
|                                                                             | 
|Add: Cash payable on acquisition                                             |  |                  | 3,128,215  |  
|                                                                             |  |                  |            |  
|Total considerations                                                         |  |                  | 7,136,536  |  
|                                                                             |  |                  |            |  
|                                                                             | 
|Net cash outflow arising on acquisition                                      |  |                  |            |  
|Cash paid on acquisition                                                     |  |                  | 1,025,516  |  
|Bank balances and cash acquired                                              |  |                  | (223,427   | )
|                                                                             |  |                  |            |  
|                                                                             |  |                  | 802,089    |  
|                                                                             |  |                  |            |  

As at December 31, 2013, Hao Sheng has not yet commenced any business.



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



44. ACQUISITION OF BEISU AND YANGCUN

On April 23, 2012, the Company entered into the assets transfer agreement with the Parent Company and its subsidiary to purchase the target assets from the Parent Company and its subsidiary at a
consideration of RMB824,142,000 to acquire all the assets and liabilities of Beisu and Yangcun and their equity investments in Beisheng Industry and Trade, Shengyang Wood and Jiemei Wall Materials. Beisu and Yangcun mainly engaged in the production
and exploration of PCI coal and thermal coal. The transaction was completed on May 31, 2013. The net assets acquired were included in the mining segment. This acquisition has been accounted for using the purchase method.

The net assets of Beisu and Yangcun acquired, and the goodwill arising, are as follows:



|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|---------------------------------------------------------------------------------- |  | ---------------- | -------- | - | --------------------- |  | ------- | ----------- |  |  | -------- | -
|                                                                                   |  | Carrying amounts |          |   | Fair valueAdjustments |  |         | Fair values | 
|                                                                                   |  | RMB000          |          |   | RMB000               |  |         | RMB000     | 
|Bank balances and cash                                                             |  |                  | 8,131    |   |                       |  |        |             |  |  | 8,131    |  
|Accounts receivable and other receivables                                          |  |                  | 96,626   |   |                       |  |        |             |  |  | 96,626   |  
|Inventories                                                                        |  |                  | 2,731    |   |                       |  | 286     |             |  |  | 3,017    |  
|Interests in associates                                                            |  |                  | 3,927    |   |                       |  |        |             |  |  | 3,927    |  
|Property, plant and equipment, net                                                 |  |                  | 285,515  |   |                       |  |        |             |  |  | 285,515  |  
|Intangible assets                                                                  |  |                  | 275,097  |   |                       |  | 189,503 |             |  |  | 464,600  |  
|Accounts payable and other payables                                                |  |                  | (708,584 | ) |                       |  | 1,982   |             |  |  | (706,602 | )
|Deferred taxation                                                                  |  |                  | 4,181    |   |                       |  | (47,447 | )           |  |  | (43,266  | )
|Provision for land subsidence, restoration, rehabilitation and environmental costs |  |                  | (20      | ) |                       |  |        |             |  |  | (20      | )
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|Net assets acquired                                                                |  |                  |          |   |                       |  |         |             |  |  | 111,928  |  
|Goodwill arising on acquisition                                                    |  |                  |          |   |                       |  |         |             |  |  | 712,214  |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  | 824,142  |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|                                                                                   |  |                  |         
|Considerations:                                                                    |  |                  |          |   |                       |  |         |             |  |  |          |  
|Cash paid on acquisition                                                           |  |                  |          |   |                       |  |         |             |  |  | 824,142  |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|                                                                                   |  |                  |         
|Net cash outflow arising on acquisition:                                           |  |                  |          |   |                       |  |         |             |  |  |          |  
|Cash outflow arising on acquisition                                                |  |                  |          |   |                       |  |         |             |  |  | (824,142 | )
|Bank balance and cash acquired                                                     |  |                  |          |   |                       |  |         |             |  |  | 8,131    |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  | (816,011 | )
|                                                                                   |  |                  |          |   |                       |  |         |             |  |  |          |  

During the year ended December 31, 2013, Beisu and Yangcun did not contribute any significant revenue or profit to
the Group. Goodwill arose because the Group can increase its production capacity in coal and the coverage of exploration from this acquisition.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



45. ACQUISITION OF GLOUCESTER

In 2012, a wholly-owned subsidiary of the Company, Yancoal Australia, merged with Gloucester. The merger was completed on June 27, 2012. Yancoal Australia acquired Gloucester at a consideration of a
combination of 218,727,665 ordinary shares of Yancoal Australia and 87,645,184 CVR shares. Gloucester is a company listed on the ASX. Following the completion of the merger, Yancoal Australia is separately listed on the ASX, replacing the listing
position of Gloucester. The ordinary shares and CVR shares of Yancoal Australia were listed on the ASX on June 28, 2012. Gloucester mainly engaged in production of coking coal and thermal coal. The net assets acquired were included in the
mining segment.

The acquisition has been accounted for using the acquisition method.

The net assets acquired on the acquisition date are as follows:



|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|----------------------------------------------------------------------------------------------- |  | ---------------- | ---------- | - | --------------------- |  | -------- | ----------- |  |  | ---------- | -
|                                                                                                |  | Carrying amounts |            |   | Fair valueAdjustments |  |          | Fair values | 
|                                                                                                |  | RMB000          |            |   | RMB000               |  |          | RMB000     | 
|Bank balances and cash                                                                          |  |                  | 237,315    |   |                       |  |         |             |  |  | 237,315    |  
|Accounts receivable and other receivables                                                       |  |                  | 605,407    |   |                       |  | (379,589 | )           |  |  | 225,818    |  
|Inventories                                                                                     |  |                  | 232,490    |   |                       |  | (3,076   | )           |  |  | 229,414    |  
|Investments in joint ventures                                                                   |  |                  | 1,951,741  |   |                       |  | (814,218 | )           |  |  | 1,137,523  |  
|Investment in securities                                                                        |  |                  | 47,026     |   |                       |  |         |             |  |  | 47,026     |  
|Royalty receivable                                                                              |  |                  | 1,243,158  |   |                       |  | 46,857   |             |  |  | 1,290,015  |  
|Property, plant and equipment, net                                                              |  |                  | 2,611,394  |   |                       |  | 761,968  |             |  |  | 3,373,362  |  
|Construction in progress                                                                        |  |                  | 257,395    |   |                       |  | 93,729   |             |  |  | 351,124    |  
|Intangible assets                                                                               |  |                  | 4,908,788  |   |                       |  | 710,512  |             |  |  | 5,619,300  |  
|Long term receivables                                                                           |  |                  | 1,329,578  |   |                       |  |         |             |  |  | 1,329,578  |  
|Accounts payable and other payables                                                             |  |                  | (3,988,052 | ) |                       |  | 71,332   |             |  |  | (3,916,720 | )
|Provision for land subsidence, restoration, rehabilitation and environmental costs              |  |                  | (100,145   | ) |                       |  |         |             |  |  | (100,145   | )
|Long term payables                                                                              |  |                  | (1,324,852 | ) |                       |  | 781,691  |             |  |  | (543,161   | )
|Tax recoverable                                                                                 |  |                  | 14,978     |   |                       |  |         |             |  |  | 14,978     |  
|Deferred taxation                                                                               |  |                  | (1,283,674 | ) |                       |  | 468,158  |             |  |  | (815,516   | )
|Borrowings                                                                                      |  |                  | (3,725,732 | ) |                       |  |         |             |  |  | (3,725,732 | )
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|Net assets acquired                                                                             |  |                  |            |   |                       |  |          |             |  |  | 4,754,179  |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|Bargain purchase                                                                                |  |                  |            |   |                       |  |          |             |  |  | (1,269,269 | )
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  | 3,484,910  |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|                                                                                                |  |                  |           
|Considerations:                                                                                 |  |                  |            |   |                       |  |          |             |  |  |            |  
|Fair value of ordinary shares issued by Yancoal Australia                                       |  |                  |            |   |                       |  |          |             |  |  | 2,138,130  |  
|Fair value of CVR shares issued                                                                 |  |                  |            |   |                       |  |          |             |  |  | 1,312,913  |  
|Direct expenses incurred on the issuance of ordinary shares and CVR shares of Yancoal Australia |  |                  |            |   |                       |  |          |             |  |  | 33,867     |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  | 3,484,910  |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  
|                                                                                                |  |                  |           
|Net cash inflow arising on acquisition:                                                         |  |                  |            |   |                       |  |          |             |  |  |            |  
|Bank balance and cash acquired                                                                  |  |                  |            |   |                       |  |          |             |  |  | 237,315    |  
|                                                                                                |  |                  |            |   |                       |  |          |             |  |  |            |  



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

45. ACQUISITION OF GLOUCESTERContinued



Bargain purchase arises because the consideration (number of shares to be issued) was fixed when the
merger proposal was announced. Upon the date of completion, the market capitalization and the market price of shares dropped and hence the total consideration paid were less than the fair value of net identifiable assets acquired because there is no
mechanism to adjust the number of shares to be issued.

During the period from the acquisition date to December 31, 2012, Gloucester have
contributed a total revenue of RMB1,658 million and an operating loss of RMB387 million.

If the acquisition had occurred on January 1,
2012, the consolidated revenue and net profit of the Group for the year ended December 31, 2012 would have been RMB59,839 million and RMB4,846 million respectively. The proforma financial information is for illustrative purpose only and does
not necessarily reflect the Groups revenue and operating results if the acquisition has been completed by January 1, 2012 and could not serve as a basis for the forecast of future operation result.

The valuation of the shares issued by Yancoal Australia and the CVR are stated at market value.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

46. ACQUISITION OF AN YUAN COAL MINE



In 2010, Ordos signed a co-operation agreement with an independent third party for the acquisition of An
Yuan Coal Mine at a consideration of RMB1,435 million. The acquisition was completed during 2011.

The acquisition of An Yuan Coal Mine was
classified as purchase of assets and liabilities of which no goodwill was recognized.

Net book values of the acquired net assets at
acquisition date are as follow:



|                                                         |  |                  |           |  
|-------------------------------------------------------- |  | ---------------- | --------- | -
|                                                         |  | Carrying amounts |          
|                                                         |  | RMB000          |          
|Property, plant and equipment, net                       |  |                  | 176,067   |  
|Intangible assets                                        |  |                  | 1,258,433 |  
|Other current assets                                     |  |                  | 500       |  
|                                                         |  |                  |           |  
|Net assets acquired                                      |  |                  | 1,435,000 |  
|                                                         |  |                  |           |  
|                                                         | 
|Considerations:                                          |  |                  |           |  
|Cash paid on acquisition                                 |  |                  | 355,000   |  
|Deposit paid for acquisition of investment in prior year |  |                  | 1,080,000 |  
|                                                         |  |                  |           |  
|                                                         |  |                  | 1,435,000 |  
|                                                         |  |                  |           |  
|Net cash outflow arising on acquisition                  |  |                  | (355,000  | )
|                                                         |  |                  |           |  

47. ACQUISITION OF ADDITIONAL INTERESTS IN JOINT OPERATIONS

The Australia subsidiaries of the Group originally held 60% equity interests in Ashton joint operations. During 2011, the Group acquired additional 30%
equity interests in Ashton joint operations from another venturer at a consideration of USD250 million. This included the acquisition of 30% equity interests in the joint ventures, Ashton Coal Mines Limited and Australian Coal Processing Holdings
Pty Ltd. Upon completion of the acquisition, the Group held 90% equity interest in Ashton joint operations.

Under the shareholders agreement,
the 90% equity interest held in Ashton remained classified as a joint operation.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



48. ACQUISITION OF SYNTECH

On May 13, 2011, a wholly-owned subsidiary of the Company acquired 100% equity interests in Syntech and its subsidiaries for a cash consideration of AUD208,480,000. The equity transfer was completed
on August 1, 2011. The principal business of Syntech and its subsidiaries include exploration, production, sorting and processing of coal, the major product of which is thermal coal. The net assets acquired were included in the mining segment.

This acquisition has been accounted for using the method.

The net assets of Syntech acquired, and the goodwill arising, are as follows:



|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|---------------------------------------------------------------------------------- |  | ---------------- | --------- | - | --------------------- |  | -------- | ----------- |  |  | ---------- | -
|                                                                                   |  | Carrying amounts |           |   | Fair valueadjustments |  |          | Fair values | 
|                                                                                   |  | RMB000          |           |   | RMB000               |  |          | RMB000     | 
|Bank balances and cash                                                             |  |                  | 51,828    |   |                       |  |         |             |  |  | 51,828     |  
|Accounts receivable and other receivables                                          |  |                  | 118,042   |   |                       |  |         |             |  |  | 118,042    |  
|Inventories                                                                        |  |                  | 85,190    |   |                       |  | 28,539   |             |  |  | 113,729    |  
|Property, plant and equipment, net                                                 |  |                  | 1,227,053 |   |                       |  | (301,522 | )           |  |  | 925,531    |  
|Intangible assets                                                                  |  |                  | 121,140   |   |                       |  | 271,234  |             |  |  | 392,374    |  
|Accounts and other payables                                                        |  |                  | (219,243  | ) |                       |  |         |             |  |  | (219,243   | )
|Deferred tax                                                                       |  |                  |          |   |                       |  | (25,642  | )           |  |  | (25,642    | )
|Provision for land subsidence, restoration, rehabilitation and environmental costs |  |                  | (14,259   | ) |                       |  |         |             |  |  | (14,259    | )
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|Net assets acquired                                                                |  |                  |           |   |                       |  |          |             |  |  | 1,342,360  |  
|Goodwill arising on acquisition                                                    |  |                  |           |   |                       |  |          |             |  |  | 25,642     |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  | 1,368,002  |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|                                                                                   |  |                  |          
|Total consideration satisfied by:                                                  |  |                  |           |   |                       |  |          |             |  |  |            |  
|Cash consideration paid on acquisition                                             |  |                  |           |   |                       |  |          |             |  |  | 1,368,002  |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|                                                                                   |  |                  |          
|Net cash outflow arising on acquisition:                                           |  |                  |           |   |                       |  |          |             |  |  |            |  
|Cash paid on acquisition                                                           |  |                  |           |   |                       |  |          |             |  |  | (1,368,002 | )
|Bank balances and cash acquired                                                    |  |                  |           |   |                       |  |          |             |  |  | 51,828     |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  | (1,316,174 | )
|                                                                                   |  |                  |           |   |                       |  |          |             |  |  |            |  

The goodwill arising from the acquisition is attributable to the extension of mining reserves in Australia and
diversification of operation by the Group, and operational synergies and strategic benefits.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



49. ACQUISITION OF PREMIER COAL AND WESFARMERS CHAR

On September 27, 2011, a wholly-owned subsidiary of the Company acquired 100% equity interests of both Premier Coal and Wesfarmers Char as a package
for a cash consideration of AUD 313,533,000. The equity transfer was completed on December 30, 2011. For Premier Coal, the principal businesses are exploration, production and processing of coal; for Wesfarmers Char, the principal businesses
are the research and development of the technology and procedures in relation to processing coal char from low rank coals. The net assets acquired were included in the mining segment.

This acquisition has been accounted for using the acquisition method.

The net assets of Premier
Coal and Wesfarmers Char acquired, and the goodwill arising, are as follows:



|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  
|---------------------------------------------------------------------------------- |  | ---------------- | --------- | - | --------------------- |  | ------- | ----------- |  |  | ---------- | -
|                                                                                   |  | Carrying amounts |           |   | Fair valueadjustments |  |         | Fair values | 
|                                                                                   |  | RMB000          |           |   | RMB000               |  |         | RMB000     | 
|Accounts and other receivable                                                      |  |                  | 91,416    |   |                       |  |        |             |  |  | 91,416     |  
|Inventories                                                                        |  |                  | 68,956    |   |                       |  | 4,666   |             |  |  | 73,622     |  
|Property, plant and equipment, net                                                 |  |                  | 1,484,398 |   |                       |  | 264,216 |             |  |  | 1,748,614  |  
|Intangible assets                                                                  |  |                  |          |   |                       |  | 511,186 |             |  |  | 511,186    |  
|Accounts and other payables                                                        |  |                  | (198,715  | ) |                       |  |        |             |  |  | (198,715   | )
|Deferred tax                                                                       |  |                  | (123,377  | ) |                       |  | 105,528 |             |  |  | (17,849    | )
|Provision for land subsidence, restoration, rehabilitation and environmental costs |  |                  | (168,847  | ) |                       |  |        |             |  |  | (168,847   | )
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  
|Net assets acquired                                                                |  |                  |           |   |                       |  |         |             |  |  | 2,039,427  |  
|Goodwill arising on acquisition                                                    |  |                  |           |   |                       |  |         |             |  |  | 17,849     |  
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  | 2,057,276  |  
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  
|                                                                                   |  |                  |          
|Total consideration satisfied by:                                                  |  |                  |           |   |                       |  |         |             |  |  |            |  
|Cash consideration paid on acquisition                                             |  |                  |           |   |                       |  |         |             |  |  | 2,057,276  |  
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  
|                                                                                   |  |                  |          
|Net cash outflow arising on acquisition:                                           |  |                  |           |   |                       |  |         |             |  |  |            |  
|Cash paid on acquisition                                                           |  |                  |           |   |                       |  |         |             |  |  | (2,057,276 | )
|                                                                                   |  |                  |           |   |                       |  |         |             |  |  |            |  

The goodwill arising from the acquisition is attributable to the extension of mining reserves in Australia and
diversification of operation by the Group, and operational synergies and strategic benefits.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



50. ACQUISITION OF XINTAI

In 2011, the Company entered into an agreement with independent third party to acquire 80% equity interests in Xintai at a cash consideration of RMB2,801,557,000. The acquisition was completed in 2011.
Xintai owns and operates Wenyu Coal Mine located in Inner Mongolia. The principle businesses are coal mining and sales. The net assets acquired were included in the mining segment.

This acquisition has been accounted for using the acquisition method.

The net assets of Xintai
acquired and the goodwill arising, are as follows:



|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|--------------------------------------- |  | ---------------- | ------- |  | --------------------- |  | --------- | ----------- |  |  | ---------- | -
|                                        |  | Carrying amounts |         |  | Fair valueadjustments |  |           | Fair values | 
|                                        |  | RMB000          |         |  | RMB000               |  |           | RMB000     | 
|Property, plant and equipment, net      |  |                  | 182,403 |  |                       |  | (14,427   | )           |  |  | 167,976    |  
|Intangible assets                       |  |                  | 50,362  |  |                       |  | 3,283,608 |             |  |  | 3,333,970  |  
|Deferred tax                            |  |                  |        |  |                       |  | (817,296  | )           |  |  | (817,296   | )
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|Net assets acquired                     |  |                  |         |  |                       |  |           |             |  |  | 2,684,650  |  
|Non-controlling interests               |  |                  |         |  |                       |  |           |             |  |  | (536,930   | )
|Goodwill arising on acquisition         |  |                  |         |  |                       |  |           |             |  |  | 653,837    |  
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|                                        |  |                  |         |  |                       |  |           |             |  |  | 2,801,557  |  
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|Considerations:                         |  |                  |         |  |                       |  |           |             |  |  |            |  
|Cash paid on acquisition                |  |                  |         |  |                       |  |           |             |  |  | 2,751,557  |  
|Outstanding consideration payable       |  |                  |         |  |                       |  |           |             |  |  | 50,000     |  
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|                                        |  |                  |         |  |                       |  |           |             |  |  | 2,801,557  |  
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  
|Net cash outflow arising on acquisition |  |                  |         |  |                       |  |           |             |  |  |            |  
|Cash paid on acquisition                |  |                  |         |  |                       |  |           |             |  |  | (2,751,557 | )
|                                        |  |                  |         |  |                       |  |           |             |  |  |            |  

The goodwill arising from the acquisition is attributable to the extension of mining reserves and diversification of
operation by the Group, and operational synergies and strategic benefits.

As at September 30, 2013, Ordos acquired the remaining 20%
equity interests in Xintai at a cash consideration of RMB680,287,000. After the acquisition, Ordos hold 100% share of Xintai. The impact of other comprehensive income for the change in Xintais equity, are as follows:



|                                                                           |  |         |          |  
|-------------------------------------------------------------------------- |  | ------- | -------- | -
|                                                                           |  | RMB000 |         
|The carrying amount of non-controlling interest                            |  |         | 440,170  |  
|Cash paid on acquisition of non-controlling interest                       |  |         | (680,287 | )
|                                                                           |  |         |          |  
|The part recorded in equity for the purchase price over the carrying value |  |         | (240,117 | )
|                                                                           |  |         |          |  



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



51. NON-CONTROLLING INTEREST

Summarised financial information of material non-controlling interests of subsidiaries is set out below:

For the details of transactions with non-controlling interests, please refer to note 50.



|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|---------------------------------------------------- |  | ------------------------------- | ----------- | - | ----------------------- |  | ----------- | ------- |  |  | ---------- | - |  |  | --- | 
|                                                     |  | Yancoal AustraliaAt December 31 |             |   | Hao ShengAt December 31 | 
|                                                     |  | 2013                            |             |   | 2012                    |  |             | 2013    |  |  | 2012       |  
|Non-controlling interests percentage                 |  |                                 | 22          | % |                         |  | 22          | %       |  |  | 20         | % |  |  | N/A | 
|                                                     |  |                                 |             |  
|                                                     |  | RMB000                         |             |   | RMB000                 |  |             | RMB000 |  |  | RMB000    |  
|Summarised financial information                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Current assets                                       |  |                                 | 5,666,980   |   |                         |  | 5,209,748   |         |  |  | 512,070    |   |  |  |    | 
|Non-current assets                                   |  |                                 | 35,859,637  |   |                         |  | 44,449,369  |         |  |  | 12,391,887 |   |  |  |    | 
|Current liabilities                                  |  |                                 | (3,858,960  | ) |                         |  | (6,519,296  | )       |  |  | (59,159    | ) |  |  |    | 
|Non-current liabilities                              |  |                                 | (32,361,612 | ) |                         |  | (31,341,942 | )       |  |  | (3,022,421 | ) |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Net assets                                           |  |                                 | 5,306,045   |   |                         |  | 11,797,879  |         |  |  | 9,822,377  |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Carrying amount of non-controlling interests         |  |                                 | 780,381     |   |                         |  | 2,487,023   |         |  |  | 2,473,275  |   |  |  |    | 
|Revenue                                              |  |                                 | 8,961,855   |   |                         |  | 9,295,942   |         |  |  |           |   |  |  |    | 
|(Loss) profit for the year                           |  |                                 | (4,978,439  | ) |                         |  | 2,462,129   |         |  |  | 15,896     |   |  |  |    | 
|Other comprehensive (loss) income                    |  |                                 | (2,977,258  | ) |                         |  | 207,957     |         |  |  |           |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Total comprehensive (loss) income                    |  |                                 | (7,955,697  | ) |                         |  | 2,670,086   |         |  |  | 15,896     |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Profit allocated to non-controlling interests        |  |                                 | (1,706,642  | ) |                         |  | (41,989     | )       |  |  | 4,003      |   |  |  |    | 
|Cash flows (used in) from operating activities       |  |                                 | (965,946    | ) |                         |  | 994,015     |         |  |  | (31,221    | ) |  |  |    | 
|Cash flows (used in) from investing activities       |  |                                 | (1,208,547  | ) |                         |  | (2,268,600  | )       |  |  | (492,719   | ) |  |  |    | 
|Cash flows from financing activities                 |  |                                 | 1,765,319   |   |                         |  | 1,634,906   |         |  |  | 643,427    |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Net (decrease) increase in cash and cash equivalents |  |                                 | (409,174    | ) |                         |  | 360,321     |         |  |  | 119,487    |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 
|Dividends paid to non-controlling interests          |  |                                 |            |   |                         |  |            |         |  |  |           |   |  |  |    | 
|                                                     |  |                                 |             |   |                         |  |             |         |  |  |            |   |  |  |     | 

The amount of above financial information is before elimination of intra-group transactions.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



52. RELATED PARTY BALANCES AND TRANSACTIONS

Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not
disclosed. In accordance with Main Board Listing Rules Chapter 14A, continuing connected transactions are disclosed below:

Balances and transactions with related party



|                                                                                  |  |                 |           |  |         |  |           | 
|--------------------------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                                                  |  | At December 31, |          
|                                                                                  |  | 2013            |           |  | 2012    | 
|                                                                                  |  | RMB000         |           |  | RMB000 | 
|Nature of balances (other than those already disclosed in note 18, 21, 32 and 33) |  |                 |           |  |         |  |           | 
|Bills and accounts receivable                                                     |  |                 |           |  |         |  |           | 
|- Parent Company and its subsidiaries                                             |  |                 | 402,872   |  |         |  | 1,039,461 | 
|- Joint ventures                                                                  |  |                 | 28,859    |  |         |  |          | 
|Prepayments and other receivables                                                 |  |                 |           |  |         |  |           | 
|- Parent Company and its subsidiaries                                             |  |                 | 49,824    |  |         |  | 109,662   | 
|- Joint ventures                                                                  |  |                 | 160,723   |  |         |  | 187,324   | 
|Bills and accounts payable                                                        |  |                 |           |  |         |  |           | 
|- Joint ventures                                                                  |  |                 |          |  |         |  |          | 
|Other payables and accrued expenses                                               |  |                 |           |  |         |  |           | 
|- Parent Company and its subsidiaries                                             |  |                 | 1,066,760 |  |         |  | 1,674,286 | 
|                                                                                  |  |                 |           |  |         |  |           | 

The amounts due from/to the Parent Company, joint ventures and its subsidiary companies are non-interest bearing,
unsecured and repayable on demand.

During the years, the Group had the following significant transactions with the Parent Company and/or its
subsidiary companies:



|                                            |  |                         |           |  |         |  |           |         |  |  |           | 
|------------------------------------------- |  | ----------------------- | --------- |  | ------- |  | --------- | ------- |  |  | --------- | 
|                                            |  | Year ended December 31, |          
|                                            |  | 2013                    |           |  | 2012    |  |           | 2011    | 
|                                            |  | RMB000                 |           |  | RMB000 |  |           | RMB000 | 
|Income                                      |  |                         |           |  |         |  |           |         |  |  |           | 
|Sales of coal                               |  |                         | 2,839,839 |  |         |  | 3,162,122 |         |  |  | 2,088,794 | 
|Sales of auxiliary materials                |  |                         | 328,732   |  |         |  | 425,957   |         |  |  | 485,676   | 
|Sales of heat and electricity               |  |                         | 111,675   |  |         |  | 167,295   |         |  |  | 180,808   | 
|Sales of methanol                           |  |                         | 126,398   |  |         |  | 47,909    |         |  |  |          | 
|Expenditure                                 |  |                         |           |  |         |  |           |         |  |  |           | 
|Utilities and facilities                    |  |                         | 19,406    |  |         |  | 35,906    |         |  |  | 31,646    | 
|Purchases of supply materials and equipment |  |                         | 1,196,372 |  |         |  | 1,552,758 |         |  |  | 696,802   | 
|Repair and maintenance services             |  |                         | 266,849   |  |         |  | 327,600   |         |  |  | 323,550   | 
|Social welfare and support services         |  |                         | 483,783   |  |         |  | 802,540   |         |  |  | 848,121   | 
|Technical support and training              |  |                         |          |  |         |  |          |         |  |  | 26,000    | 
|Road transportation services                |  |                         | 14,119    |  |         |  | 67,654    |         |  |  | 73,638    | 
|Construction services                       |  |                         | 522,314   |  |         |  | 689,787   |         |  |  | 718,155   | 
|                                            |  |                         |           |  |         |  |           |         |  |  |           | 

Expenditures for social welfare and support services (excluding medical and child care expenses) are RMB122,460,000,
RMB176,820,000 and RMB269,182,000 for the years ended December 31, 2013, 2012 and 2011. In addition, no technical support and training expenses were charged by the Parent Company for the year ended December 31, 2013 (2012: RMBNil) (2011:
RMB26,000,000). These expenses will be negotiated with and paid by the Parent Company each year.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)

52. RELATED PARTY BALANCES AND TRANSACTIONSContinued

Balances
and transactions with related partycontinued



As at December 31, 2013, the Company has deposited RMB103,464,000 (2012: RMB1,719,621,000) (2011:
RMB1,820,000,000) to the Companys associate, Yan Kuang Group Finance Company Limited. The interest income received and finance cost paid during the year amounted to RMB4,756,000 (2012: RMB7,986,000) (2011: RMB7,665,000) and RMB1,645,000 (2012:
RMB1,411,000) (2011: RMB10,119,000) respectively.

In addition to the above, the Company participates in a retirement benefit scheme of the
Parent Company in respect of retirement benefits (note 54).

Balances and transactions 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 large 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 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:



|                |  |                         |           |  |         |  |            |         |  |  |           | 
|--------------- |  | ----------------------- | --------- |  | ------- |  | ---------- | ------- |  |  | --------- | 
|                |  | Year ended December 31, |          
|                |  | 2013                    |           |  | 2012    |  |            | 2011    | 
|                |  | RMB000                 |           |  | RMB000 |  |            | RMB000 | 
|Trade sales     |  |                         | 5,986,611 |  |         |  | 10,503,203 |         |  |  | 8,487,421 | 
|Trade purchases |  |                         | 5,078,834 |  |         |  | 4,500,994  |         |  |  | 2,597,741 | 
|                |  |                         |           |  |         |  |            |         |  |  |           | 

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



|                                                 |  |                 |         |  |         |  |           | 
|------------------------------------------------ |  | --------------- | ------- |  | ------- |  | --------- | 
|                                                 |  | At December 31, |        
|                                                 |  | 2013            |         |  | 2012    | 
|                                                 |  | RMB000         |         |  | RMB000 | 
|Amounts due to other state-controlled entities   |  |                 | 328,474 |  |         |  | 592,267   | 
|Amounts due from other state-controlled entities |  |                 | 804,906 |  |         |  | 1,361,139 | 
|                                                 |  |                 |         |  |         |  |           | 

Amounts due to and from state-controlled entities are trade nature of which terms are not different from other customers
(notes 18 and 32).



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



52. RELATED PARTY BALANCES AND TRANSACTIONSContinued



In addition, the Group has entered into various transactions, including
deposits placements, borrowings and other general banking facilities, with certain banks and financial 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 significant to the Groups operations.

Balances
and transactions with joint ventures



|                                   |  |                 |           |  |         |  |           | 
|---------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                   |  | At December 31, |          
|                                   |  | 2013            |           |  | 2012    | 
|                                   |  | RMB000         |           |  | RMB000 | 
|Due from a joint venture (note 28) |  |                 | 1,587,001 |  |         |  | 1,682,983 | 
|                                   |  |                 |           |  |         |  |           | 

The amount due from a joint venture is unsecured and interest is calculated at commercial rate, interest received by the
Group in the current year amounting to RMB17,831,000.

During the year, the Groups Australian subsidiaries sold coal products and
provided marketing and administrative services to the joint ventures of the Group amounted to RMB796,212,000 (2012: RMB1,030,323,000) and RMB1,530,000 (2012: RMB455,000), respectively.

Compensation of key management personnel

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



|                                               |  |                         |       |  |         |  |       |         |  |  |       | 
|---------------------------------------------- |  | ----------------------- | ----- |  | ------- |  | ----- | ------- |  |  | ----- | 
|                                               |  | Year ended December 31, |      
|                                               |  | 2013                    |       |  | 2012    |  |       | 2011    | 
|                                               |  | RMB000                 |       |  | RMB000 |  |       | RMB000 | 
|Directors fee                                 |  |                         | 520   |  |         |  | 520   |         |  |  | 484   | 
|Salaries, allowance and other benefits in kind |  |                         | 5,987 |  |         |  | 5,850 |         |  |  | 4,864 | 
|Retirement benefit scheme contributions        |  |                         | 1,020 |  |         |  | 1,033 |         |  |  | 834   | 
|                                               |  |                         |       |  |         |  |       |         |  |  |       | 
|                                               |  |                         | 7,527 |  |         |  | 7,403 |         |  |  | 6,182 | 
|                                               |  |                         |       |  |         |  |       |         |  |  |       | 

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



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



53. COMMITMENTS



|                                                                                             |  |                 |           |  |         |  |           | 
|-------------------------------------------------------------------------------------------- |  | --------------- | --------- |  | ------- |  | --------- | 
|                                                                                             |  | At December 31, |          
|                                                                                             |  | 2013            |           |  | 2012    | 
|                                                                                             |  | RMB000         |           |  | RMB000 | 
|Capital expenditure contracted for but not provided in the consolidated financial statements |  |                 |           |  |         |  |           | 
|Acquisition of property, plant and equipment                                                 |  |                 |           |  |         |  |           | 
|- the Group                                                                                  |  |                 | 2,375,634 |  |         |  | 2,626,207 | 
|- share of joint operations                                                                  |  |                 | 27,254    |  |         |  | 310,912   | 
|Acquisition of intangible assets                                                             |  |                 |           |  |         |  |           | 
|- the Group                                                                                  |  |                 |          |  |         |  |          | 
|- share of joint operations                                                                  |  |                 | 504       |  |         |  | 30        | 
|Exploration and evaluation                                                                   |  |                 |           |  |         |  |           | 
|- the Group                                                                                  |  |                 | 1,094     |  |         |  |          | 
|- share of joint operations                                                                  |  |                 | 9,977     |  |         |  |          | 
|                                                                                             |  |                 |           |  |         |  |           | 
|                                                                                             |  |                 | 2,414,463 |  |         |  | 2,937,149 | 
|                                                                                             |  |                 |           |  |         |  |           | 

Pursuant to the regulations issued by the Shandong Province Finance Bureau, the Group has to pay a deposit of RMB2,636
million (2012: RMB2,636 million) to the relevant government authority, which secured for the environmental protection work done by the Company. As at December 31, 2013, deposit of RMB1,052 million (2012: RMB1,042 million) were made and the
Company is committed to further make security deposit of RMB1,614 million (2012: RMB1,594 million).

54. RETIREMENT BENEFITS

Qualifying employees of the Company are entitled to pension, medical and other welfare benefits. The Company participates in a scheme of
the Parent Company and pays a monthly contribution to the Parent Company in respect of retirement benefits at an agreed contribution rate based on the monthly basic salaries and wages of the qualified employees. The Parent Company is responsible for
the payment of all retirement benefits 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 March 22, 2013 (2012: May 8, 2012), the monthly contribution rate is at 20% (2012: 20%; 2011: 20%) of the total monthly basic salaries and wages of the Companys
employees for the period from January 1, 2013 to December 31, 2014. Other welfare benefits will be provided by the Parent Company, which will be reimbursed by the Company.

The amount of contributions paid to the Parent Company were RMB874,753,000, RMB857,352,000, and RMB760,906,000 for the years ended December 31, 2013, 2012, and 2011, respectively.

The Companys subsidiaries are participants in a state-managed retirement scheme pursuant to which the subsidiaries pay a fixed percentage of its
qualifying staffs wages as a contribution to the scheme. The subsidiaries financial obligations under this scheme are limited to the payment of the employers contribution. During the year, contributions paid and payable by the
subsidiaries pursuant to this arrangement were insignificant to the Group. The Groups overseas subsidiaries pay fixed contribution as pensions under the laws and regulations of the relevant countries.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



54. RETIREMENT BENEFITSContinued



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

55. HOUSING SCHEME

The Parent Company is responsible for providing accommodation to its employees and the domestic 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 three years ended December 31, 2013, 2012 and 2011. Such expenses, amounting to RMB80,042,000, RMB137,200,000 and RMB140,000,000 for each
of the three years ended December 31, 2013, 2012 and 2011 respectively, have been included as part of the social welfare and support services expenses summarized in note 54.

The Company currently makes a fixed 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.

56. POST BALANCE SHEET EVENT

On
February 5, 2014, Yancoal Australia issued a notice to announce that the repurchase date of CVR shares is stipulated on March 4, 2014 and the repurchase price is set at AUD3 per share. The repurchase of CVR shares will be made on any
practicable date on or after March 11, 2014. Up to the report date, the Company completed the repurchase of CVR shares issued to former Gloucester shareholders.

57. MAJOR NON-CASH TRANSACTION

During the year ended December 31, 2013, the Group
acquired certain property, plant and equipment, of which RMB3,787,729,000 (2012: RMB3,662,785,000) have not yet been paid.

58. OPERATING
LEASE COMMITMENTS



|                                                 |  |                 |        |  |         |  |         | 
|------------------------------------------------ |  | --------------- | ------ |  | ------- |  | ------- | 
|                                                 |  | At December 31, |       
|                                                 |  | 2013            |        |  | 2012    | 
|                                                 |  | RMB000         |        |  | RMB000 | 
|Within one year                                  |  |                 | 13,296 |  |         |  | 40,160  | 
|More than one year, but not more than five years |  |                 | 47,265 |  |         |  | 65,756  | 
|                                                 |  |                 |        |  |         |  |         | 
|                                                 |  |                 | 60,561 |  |         |  | 105,916 | 
|                                                 |  |                 |        |  |         |  |         | 

Operating leases have average remaining lease terms of 1 to 5 years. Items that are subject to operating leases include
mining equipment, office space and small items of office equipment.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



59. CONTINGENT LIABILITIES



|           |  |                                                                                                                                            |  |  |           |  |  |  |           | 
|---------- |  | ------------------------------------------------------------------------------------------------------------------------------------------ |  |  | --------- |  |  |  | --------- | 
|           |  | At December 31,                                                                                                                            | 
|           |  | 2013                                                                                                                                       |  |  | 2012      | 
|           |  | RMB000                                                                                                                                    |  |  | RMB000   | 
|           |  |                                                                                                                                           
|Guarantees |  |                                                                                                                                            |  |  |           |  |  | 
|(a)        |  | The Group                                                                                                                                  |  |  |           |  |  |  |           | 
|           |  | Guarantees secured over deposits                                                                                                           |  |  | 81,670    |  |  |  | 13,256    | 
|           |  | Performance guarantees provided to daily operations                                                                                        |  |  | 921,275   |  |  |  | 1,818,000 | 
|           |  | Guarantees provided in respect of the cost of restoration of certain mining leases, given to government departments as
required by statute |  |  | 146,826   |  |  |  | 352,481   | 
|           |  |                                                                                                                                            | 
|(b)        |  | Joint operations                                                                                                                           |  |  |           |  |  |  |           | 
|           |  | Performance guarantees provided to daily operations                                                                                        |  |  | 417,352   |  |  |  | 745       | 
|           |  | Guarantees provided in respect of the cost of restoration of certain mining leases, given to government departments as
required by statute |  |  | 48,477    |  |  |  | 28,432    | 
|           |  |                                                                                                                                            |  |  |           |  |  |  |           | 
|           |  |                                                                                                                                            |  |  | 1,615,600 |  |  |  | 2,212,914 | 
|           |  |                                                                                                                                            |  |  |           |  |  |  |           | 

During the year, Yancoal Australia was notified of an unfavourable determination by Innovation Australia in relation to
certain R&D activities registered by the Group from June 2005 to December 2009. The value of the tax benefits in relation to the relevant R&D project over the period is approximately AUD19,000,000. Innovation Australia has made a referral to
the Australia Tax Office to undertake a review of the expenditure claims. As at report date, there have been no amended assessments issued by the Commissioner of Taxation.



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YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



60. INFORMATION OF THE COMPANY

Details of the Companys major subsidiaries at December 31, 2013 and 2012 are as follows:



|                                                                |  |                                                   |           |  |                                                 |  |                  |                                                                        |  |  |                               |   |  |                      |       |   |            |  |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |                                                                                     
|--------------------------------------------------------------- |  | ------------------------------------------------- | --------- |  | ----------------------------------------------- |  | ---------------- | ---------------------------------------------------------------------- |  |  | ----------------------------- | - |  | -------------------- | ----- | - | ---------- |  | ----- | - |  |  | ----- | - |  |  | ----- | - |  |  | ----- | - |  | ------------------------------------------------------------------------------------
|Name of subsidiary                                              |  | Country ofincorporation/registrationand operation |           |  | Issued and fullypaid capital/registered capital |  |                  | Proportion ofregisteredcapital/issued sharecapital held by the
Company |  |  | Proportionof votingpower held |   |  | Principal activities
|                                                                |  |                                                   |           |  |                                                 |  |                  | 2013                                                                   |  |  | 2012                          |   |  | 2013                 |       |   | 2012       |  |       |  
|                                                                |  |                                                   |           |  |                                                 |  |                  | Directly                                                               |  |  | Indirectly                    |   |  | Directly             |       |   | Indirectly |  |       |   |  |  |       |   |  | 
|Austar Coal Mine Pty, Limited (Austar)                        |  |                                                   | Australia |  |                                                 |  | AUD64,000,000    |                                                                        |  |  |                              |   |  |                      | 100   | % |            |  |      |   |  |  | 100   | % |  |  | 100   | % |  |  | 100   | % |  | Coal mining business in Australia                                                   
|Heze (note 1)                                                   |  |                                                   | PRC       |  |                                                 |  | RMB3,000,000,000 |                                                                        |  |  | 98.33                         | % |  |                      |      |   |            |  | 98.33 | % |  |  |      |   |  |  | 98.33 | % |  |  | 98.33 | % |  | Coal mining and sales                                                               
|Yancoal Australia (note 2)                                      |  |                                                   | Australia |  |                                                 |  | AUD656,700,717   |                                                                        |  |  | 78                            | % |  |                      |      |   |            |  | 78    | % |  |  |      |   |  |  | 78    | % |  |  | 78    | % |  | Investment holding                                                                  
|Shandong Yanmei Shipping Co., Ltd. (Yanmei Shipping) (note 1) |  |                                                   | PRC       |  |                                                 |  | RMB5,500,000     |                                                                        |  |  | 92                            | % |  |                      |      |   |            |  | 92    | % |  |  |      |   |  |  | 92    | % |  |  | 92    | % |  | Transportation via rivers and lakes and the sales of coal and construction materials
|Yulin (note 1)                                                  |  |                                                   | PRC       |  |                                                 |  | RMB1,400,000,000 |                                                                        |  |  | 100                           | % |  |                      |      |   |            |  | 100   | % |  |  |      |   |  |  | 100   | % |  |  | 100   | % |  | Methanol and electricity power business                                             
|Zhongyan Trade Co., Ltd (Zhongyan) (note 1)                   |  |                                                   | PRC       |  |                                                 |  | RMB2,100,000     |                                                                        |  |  | 52.38                         | % |  |                      |      |   |            |  | 52.38 | % |  |  |      |   |  |  | 52.38 | % |  |  | 52.38 | % |  | Trading and processing of mining machinery                                          
|Shanxi Neng Hua (note 1)                                        |  |                                                   | PRC       |  |                                                 |  | RMB600,000,000   |                                                                        |  |  | 100                           | % |  |                      |      |   |            |  | 100   | % |  |  |      |   |  |  | 100   | % |  |  | 100   | % |  | Investment holding                                                                  
|Shanxi Tianchi (note 1)                                         |  |                                                   | PRC       |  |                                                 |  | RMB90,000,000    |                                                                        |  |  |                              |   |  |                      | 81.31 | % |            |  |      |   |  |  | 81.31 | % |  |  | 81.31 | % |  |  | 81.31 | % |  | Coal mining business                                                                
|Shanxi Tianhao (note 1)                                         |  |                                                   | PRC       |  |                                                 |  | RMB150,000,000   |                                                                        |  |  |                              |   |  |                      | 99.89 | % |            |  |      |   |  |  | 99.89 | % |  |  | 99.89 | % |  |  | 99.89 | % |  | Methanol and electricity power business                                             
|Hua Ju Energy (note 1)                                          |  |                                                   | PRC       |  |                                                 |  | RMB288,589,774   |                                                                        |  |  | 95.14                         | % |  |                      |      |   |            |  | 95.14 | % |  |  |      |   |  |  | 95.14 | % |  |  | 95.14 | % |  | Electricity and heat supply                                                         
|Ordos (note 1)                                                  |  |                                                   | PRC       |  |                                                 |  | RMB3,100,000,000 |                                                                        |  |  | 100                           | % |  |                      |      |   |            |  | 100   | % |  |  |      |   |  |  | 100   | % |  |  | 100   | % |  | Investment holding, coal mining and sales                                           
|Yize (note 1)                                                   |  |                                                   | PRC       |  |                                                 |  | RMB136,260,500   |                                                                        |  |  |                              |   |  |                      | 100   | % |            |  |      |   |  |  | 100   | % |  |  | 100   | % |  |  | 100   | % |  | Development of methanol project                                                     
|Rongxin Chemicals (note 1)                                      |  |                                                   | PRC       |  |                                                 |  | RMB3,000,000     |                                                                        |  |  |                              |   |  |                      | 100   | % |            |  |      |   |  |  | 100   | % |  |  | 100   | % |  |  | 100   | % |  | Development of methanol project                                                     
|Daxin Industrial (note 1)                                       |  |                                                   | PRC       |  |                                                 |  | RMB4,107,432     |                                                                        |  |  |                              |   |  |                      | 100   | % |            |  |      |   |  |  | 100   | % |  |  | 100   | % |  |  | 100   | % |  | Development of methanol project                                                     
|Xintai (note 1)                                                 |  |                                                   | PRC       |  |                                                 |  | RMB5,000,000     |                                                                        |  |  |                              |   |  |                      | 100   | % |            |  |      |   |  |  | 80    | % |  |  | 100   | % |  |  | 80    | % |  | Coal mining and sales                                                               
|Inner Mongolia Haosheng Coal Mining Co., Ltd (note 1)           |  |                                                   | PRC       |  |                                                 |  | RMB800,000,000   |                                                                        |  |  | 74.82                         | % |  |                      |      |   |            |  |      |   |  |  |      |   |  |  | 74.82 | % |  |  |      |   |  | Sales of coal mine machinery equipment and accessories                              
|Rizhao (note 1)                                                 |  |                                                   | PRC       |  |                                                 |  | RMB300,000,000   |                                                                        |  |  | 51                            | % |  |                      |      |   |            |  |      |   |  |  |      |   |  |  | 51    | % |  |  |      |   |  | Coal wholesale management and others                                                



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



60. INFORMATION OF THE COMPANYContinued



|                                                          |  |                                                   |           |  |                                                 |  |                |                                                                        |  |  |                               |   |  |                      |     |   |            |  |     |   |  |  |     |   |  |  |     |   |  |  |     |   |  |                                                    
|--------------------------------------------------------- |  | ------------------------------------------------- | --------- |  | ----------------------------------------------- |  | -------------- | ---------------------------------------------------------------------- |  |  | ----------------------------- | - |  | -------------------- | --- | - | ---------- |  | --- | - |  |  | --- | - |  |  | --- | - |  |  | --- | - |  | ---------------------------------------------------
|Name of subsidiary                                        |  | Country ofincorporation/registrationand operation |           |  | Issued and fullypaid capital/registered capital |  |                | Proportion ofregisteredcapital/issued sharecapital held by the
Company |  |  | Proportionof votingpower held |   |  | Principal activities
|                                                          |  |                                                   |           |  |                                                 |  |                | 2013                                                                   |  |  | 2012                          |   |  | 2013                 |     |   | 2012       |  |     |  
|                                                          |  |                                                   |           |  |                                                 |  |                | Directly                                                               |  |  | Indirectly                    |   |  | Directly             |     |   | Indirectly |  |     |   |  |  |     |   |  | 
|Yancoal International                                     |  |                                                   | Hong Kong |  |                                                 |  | USD2,800,000   |                                                                        |  |  | 100                           | % |  |                      |    |   |            |  | 100 | % |  |  |    |   |  |  | 100 | % |  |  | 100 | % |  | Investment holding                                 
|Yancoal International Resources Development Co., Limited  |  |                                                   | Hong Kong |  |                                                 |  | USD600,000     |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal resource exploration development              
|Yancoal International Technology Development Co., Limited |  |                                                   | Hong Kong |  |                                                 |  | USD1,000,000   |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining technology Development                 
|Yancoal International Trading Co., Limited                |  |                                                   | Hong Kong |  |                                                 |  | USD1,000,000   |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Entrepot trade                                     
|Yancoal Technology (Holdings) Co., Ltd.                   |  |                                                   | Australia |  |                                                 |  | AUD75,407,506  |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                                   
|Yancoal Resources                                         |  |                                                   | Australia |  |                                                 |  | AUD446,409,065 |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining business in Australia                  
|Trading Centre (Note 1)                                   |  |                                                   | PRC       |  |                                                 |  | RMB100,000,000 |                                                                        |  |  | 51                            | % |  |                      |    |   |            |  | 51  | % |  |  |    |   |  |  | 51  | % |  |  | 51  | % |  | Coal sales                                         
|Beisheng Industry and Trade (Note 1)                      |  |                                                   | PRC       |  |                                                 |  | RMB2,404,000   |                                                                        |  |  | 100                           | % |  |                      |    |   |            |  | 100 | % |  |  |    |   |  |  | 100 | % |  |  | 100 | % |  | Coal Mining and sales                              
|Ashton Coal Operations Pty Limited                        |  |                                                   | Australia |  |                                                 |  | AUD5           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Management of operations                           
|Athena Coal Pty Ltd                                       |  |                                                   | Australia |  |                                                 |  | AUD2           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal exploration                                   
|Felix NSW Pty Ltd                                         |  |                                                   | Australia |  |                                                 |  | AUD2           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding                                 
|Moolarben Coal Mines Pty Limited                          |  |                                                   | Australia |  |                                                 |  | AUD1           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal business development                          
|Moolarben Coal Operations Pty Ltd                         |  |                                                   | Australia |  |                                                 |  | AUD2           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Management of coal operations                      
|Moolarben Coal Sales Pty Ltd                              |  |                                                   | Australia |  |                                                 |  | AUD2           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal sales                                         
|Proserpina Coal Pty Ltd                                   |  |                                                   | Australia |  |                                                 |  | AUD1           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                              
|Syntech Holdings Pty Ltd                                  |  |                                                   | Australia |  |                                                 |  | AUD223,470,552 |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding and management of coal operation
|Duralie Coal Pty Ltd                                      |  |                                                   | Australia |  |                                                 |  | AUD2           |                                                                        |  |  |                              |   |  |                      | 100 | % |            |  |    |   |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining                                        



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



60. INFORMATION OF THE COMPANYContinued



|                                |  |                                                   |                  |  |                                                 |  |                |                                                                        |  |  |                               |  |  |                      |     |   |            |  |   |  |  |  |     |   |  |  |     |   |  |  |     |   |  |                                               
|------------------------------- |  | ------------------------------------------------- | ---------------- |  | ----------------------------------------------- |  | -------------- | ---------------------------------------------------------------------- |  |  | ----------------------------- |  |  | -------------------- | --- | - | ---------- |  | - |  |  |  | --- | - |  |  | --- | - |  |  | --- | - |  | ----------------------------------------------
|Name of subsidiary              |  | Country ofincorporation/registrationand operation |                  |  | Issued and fullypaid capital/registered capital |  |                | Proportion ofregisteredcapital/issued sharecapital held by the
Company |  |  | Proportionof votingpower held |  |  | Principal activities
|                                |  |                                                   |                  |  |                                                 |  |                | 2013                                                                   |  |  | 2012                          |  |  | 2013                 |     |   | 2012       |  |   | 
|                                |  |                                                   |                  |  |                                                 |  |                | Directly                                                               |  |  | Indirectly                    |  |  | Directly             |     |   | Indirectly |  |   |  |  |  |     |   |  | 
|Gloucester                      |  |                                                   | Australia        |  |                                                 |  | AUD719,720,808 |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal resource exploration development         
|Auriada Limited                 |  |                                                   | Northern Ireland |  |                                                 |  | AUD5           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated    
|Ballymoney Power Limited        |  |                                                   | Northern Ireland |  |                                                 |  | AUD5           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated    
|Balhoil Nominees Pty Ltd        |  |                                                   | Australia        |  |                                                 |  | AUD7,270       |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                      
|SASE Pty Limited                |  |                                                   | Australia        |  |                                                 |  | AUD9,650,564   |                                                                        |  |  |                              |  |  |                      | 90  | % |            |  |  |  |  |  | 90  | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated    
|CIM Mining Pty Ltd              |  |                                                   | Australia        |  |                                                 |  | AUD30,180,720  |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                      
|Donaldson Coal
Holdings Ltd     |  |                                                   | Australia        |  |                                                 |  | AUD204,945,942 |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                              
|Monash Coal
Holdings Pty Ltd    |  |                                                   | Australia        |  |                                                 |  | AUD100         |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Dormant                                       
|CIM Stratford Pty Ltd           |  |                                                   | Australia        |  |                                                 |  | AUD21,558,606  |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Dormant                                       
|CIM Services Pty Ltd            |  |                                                   | Australia        |  |                                                 |  | AUD8,400,002   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Dormant                                       
|Donaldson Coal Pty Ltd          |  |                                                   | Australia        |  |                                                 |  | AUD6,688,782   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                         
|Agrarian Finance Pty Ltd        |  |                                                   | Australia        |  |                                                 |  | AUD2           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Dormant                                       
|Monash Coal Pty Ltd             |  |                                                   | Australia        |  |                                                 |  | AUD200         |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                         
|Newcastle Coal Company Pty Ltd  |  |                                                   | Australia        |  |                                                 |  | AUD2,300,999   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                         
|Syntech Holdings II Pty Ltd     |  |                                                   | Australia        |  |                                                 |  | AUD6,318,490   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding                            
|Tonford Pty Ltd                 |  |                                                   | Australia        |  |                                                 |  | AUD2           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal exploration                              
|UCC Energy Pty Limited          |  |                                                   | Australia        |  |                                                 |  | AUD2           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Ultra clean coal technology                   
|Wesfarmers Premier Coal Limited |  |                                                   | Australia        |  |                                                 |  | AUD8,779,250   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Exploration, production and processing of coal
|White Mining (NSW) Pty Limited  |  |                                                   | Australia        |  |                                                 |  | AUD10          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                         



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



60. INFORMATION OF THE COMPANYContinued



|                                    |  |                                                   |            |  |                                                 |  |                                               |                                                                        |  |  |                               |  |  |                      |     |   |            |  |   |  |  |  |     |   |  |  |     |   |  |  |     |   |  |                                                
|----------------------------------- |  | ------------------------------------------------- | ---------- |  | ----------------------------------------------- |  | --------------------------------------------- | ---------------------------------------------------------------------- |  |  | ----------------------------- |  |  | -------------------- | --- | - | ---------- |  | - |  |  |  | --- | - |  |  | --- | - |  |  | --- | - |  | -----------------------------------------------
|Name of subsidiary                  |  | Country ofincorporation/registrationand operation |            |  | Issued and fullypaid capital/registered capital |  |                                               | Proportion ofregisteredcapital/issued sharecapital held by the
Company |  |  | Proportionof votingpower held |  |  | Principal activities
|                                    |  |                                                   |            |  |                                                 |  |                                               | 2013                                                                   |  |  | 2012                          |  |  | 2013                 |     |   | 2012       |  |   | 
|                                    |  |                                                   |            |  |                                                 |  |                                               | Directly                                                               |  |  | Indirectly                    |  |  | Directly             |     |   | Indirectly |  |   |  |  |  |     |   |  | 
|White Mining Research Pty Ltd       |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated     
|White Mining Services Pty Limited   |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated     
|White Mining Limited                |  |                                                   | Australia  |  |                                                 |  | Ordinary shares AUD 3,300,000A Shares AUD 200 |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding and management of operations
|Yancoal Canada                      |  |                                                   | Canada     |  |                                                 |  | USD290,000,000                                |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Potash exploration                             
|Mountfield Properties Pty Ltd       |  |                                                   | Australia  |  |                                                 |  | AUD100                                        |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding                             
|AMH (Chinchilla Coal) Pty Ltd       |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal exploration                               
|Syntech Resources Pty Ltd           |  |                                                   | Australia  |  |                                                 |  | AUD1,251,431                                  |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                          
|Yancoal Luxembourg                  |  |                                                   | Luxembourg |  |                                                 |  | USD500,000                                    |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment holding                             
|Yarrabee Coal Company Pty Ltd       |  |                                                   | Australia  |  |                                                 |  | AUD92,080                                     |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining and sales                          
|Westralian Prospectors NL           |  |                                                   | Australia  |  |                                                 |  | AUD93,001                                     |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                       
|Eucla Mining NL                     |  |                                                   | Australia  |  |                                                 |  | AUD707,500                                    |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                       
|CIM Duralie Pty Ltd                 |  |                                                   | Australia  |  |                                                 |  | AUD665                                        |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                       
|Duralie Coal Marketing Pty Ltd      |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia                       
|Gloucester (SPV) Pty Ltd            |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Gloucester (Sub Holdings 1) Pty Ltd |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Gloucester (Sub Holdings 2) Pty Ltd |  |                                                   | Australia  |  |                                                 |  | AUD2                                          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Donaldson Coal Finance Pty Ltd      |  |                                                   | Australia  |  |                                                 |  | AUD10                                         |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Investment company                             



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##### Table of Contents

YANZHOU COAL MINING COMPANY LIMITED AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Continued)



60. INFORMATION OF THE COMPANYContinued



|                                       |  |                                                   |           |  |                                                 |  |                |                                                                        |  |  |                               |  |  |                      |     |   |            |  |   |  |  |  |     |   |  |  |     |   |  |  |     |   |  |                                                
|-------------------------------------- |  | ------------------------------------------------- | --------- |  | ----------------------------------------------- |  | -------------- | ---------------------------------------------------------------------- |  |  | ----------------------------- |  |  | -------------------- | --- | - | ---------- |  | - |  |  |  | --- | - |  |  | --- | - |  |  | --- | - |  | -----------------------------------------------
|Name of subsidiary                     |  | Country ofincorporation/registrationand operation |           |  | Issued and fullypaid capital/registered capital |  |                | Proportion ofregisteredcapital/issued sharecapital held by the
Company |  |  | Proportionof votingpower held |  |  | Principal activities
|                                       |  |                                                   |           |  |                                                 |  |                | 2013                                                                   |  |  | 2012                          |  |  | 2013                 |     |   | 2012       |  |   | 
|                                       |  |                                                   |           |  |                                                 |  |                | Directly                                                               |  |  | Indirectly                    |  |  | Directly             |     |   | Indirectly |  |   |  |  |  |     |   |  | 
|Stradford Coal Pty Ltd                 |  |                                                   | Australia |  |                                                 |  | AUD10          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal mining                                    
|Stradford Coal Marketing Pty Ltd       |  |                                                   | Australia |  |                                                 |  | AUD10          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Coal sales                                     
|Abakk Pty Ltd                          |  |                                                   | Australia |  |                                                 |  | AUD6           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated     
|Primecoal International Pty Ltd        |  |                                                   | Australia |  |                                                 |  | AUD1           |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | No business in Australia, to be liquidated     
|Athena Holdings P/L                    |  |                                                   | Australia |  |                                                 |  | AUD24,450,405  |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holding company                                
|Premier Coal Holdings P/L              |  |                                                   | Australia |  |                                                 |  | AUD321,613,108 |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Tonford Holdings P/L                   |  |                                                   | Australia |  |                                                 |  | AUD46,407,917  |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Wilpeena Holdings P/L                  |  |                                                   | Australia |  |                                                 |  | AUD3,457,381   |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Yancoal Energy P/L                     |  |                                                   | Australia |  |                                                 |  | AUD202,977,694 |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | Holdings company                               
|Yancoal Technology Development Pty Ltd |  |                                                   | Australia |  |                                                 |  | AUD 2          |                                                                        |  |  |                              |  |  |                      | 100 | % |            |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  | LTCC technical development and equipment rental

Unless otherwise specified, the capital of the above subsidiaries are registered capital (those established in the PRC)
or ordinary shares (those established in other countries).



|        |  |                                                                                                                                                                                                                                                                                          
|------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note 1: |  | Yanmei Shipping, Yulin, Zhongyan, Heze, Shanxi Neng Hua, Shanxi Tianchi, Shanxi Tianhao, Hua Ju Energy, Ordos, Yize, Rongxin Chemical, Daxin Industrial, Xintai, Haosheng and Rizhao
are established in the PRC as limited liability companies.                                          
|        | 
|Note 2: |  | The investment cost of RMB3,781,606,000 in respect of investment in Yancoal Australia was included in investment in subsidiaries. As at December 31, 2013, the market value of
these shares was approximately RMB3,200,344,000 (AUD589,371,000) (2012: RMB5,068,829,000 (AUD775,489,000))



F-119