Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (a joint stock limited company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 01088) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board of directors (the “Board ”) of China Shenhua Energy Company Limited (the “Company ”) is pleased to announce the unaudited interim results of the Company and its subsidiaries for the six months ended 30 June 2026. The interim results have been reviewed by the audit and risk management committee of the Board. This announcement, containing the full text of the 2026 interim report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of interim results. The 2026 interim results of the Company are available for viewing on the websites of the Company at www.csec.com or www.shenhuachina.com and the HKEXnews website at www.hkexnews.hk. By order of the Board China Shenhua Energy Company Limited Song Jinggang Chief Financial Officer and Secretary to the Board of Directors Beijing, 28 August 2026 As at the date of this announcement, the Board comprises the following: Mr. Zhang Changyan as executive director, Mr. Kang Fengwei and Mr. Li Xinhua as non-executive directors, Dr. Yuen Kwok Keung, Dr. Chen Hanwen and Mr. Wang Hong as independent non-executive directors, and Ms. Jiao Lei as employee director.
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2026 Interim Report 1 I. The Board, directors and senior management of the Company warrant the authenticity, accuracy and completeness of the information contained in this interim report and that it does not contain any misrepresentations, misleading statements or material omissions, and assume individual and joint and several legal liability. II. This report was approved at the 21st meeting of the sixth session of the Board of the Company. 5 out of 7 directors attended the meeting in person. Kang Fengwei and Li Xinhua (non-executive Directors) requested for leave due to business engagements, and authorised Zhang Changyan (executive Director) to attend and vote at the Board meeting on their behalf. III. The interim financial statements of this report have not been audited. Ernst & Young has issued a review report on the Company ’s 2026 Interim Financial Statements prepared under IFRS Accounting Standards in accordance with the Hong Kong Standard on Review Engagements. IV. Zhang Changyan, the person-in-charge of the Company, Song Jinggang, Chief Financial Officer, and Yu Yanling, person- in-charge of the accounting department, warrant the authenticity, accuracy and completeness of the financial statements contained in this report. V. The Board proposed the payment of interim dividend for 2026 of RMB0.98 per share (tax inclusive) based on the total share capital as at the record date for the dividend distribution. The proposed profit distribution is subject to the approval at the general meeting of the Company. According to the total share capital of 21,689,434,304 shares of the Company as at 30 June 2026, the interim dividend totaling RMB21,256 million (tax inclusive) will be paid. VI. Disclaimer of forward-looking statements: the forward-looking statements in this report made on the basis of subjective assumptions and judgements on future policies and economic conditions, which are subject to risks, uncertainties and assumptions, may differ materially from the actual outcome. Such statements do not constitute actual commitments to investors. Investors should be aware that undue reliance on or use of such information may lead to risks of investment. VII. Any appropriation of funds by the controlling shareholder and its related parties for non-operating purposes: No VIII. Any provision of external guarantee that has violated the applicable decision-making procedures: No IX. Whether more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the interim report disclosed by the Company: No X. Material risk alert: the Company has explained in detail the risks faced by the Company, among other things, risks in safety, environmental protection, investment, compliance, engineering management, market competition, integrated operation, policy and international operation, in the section headed “Management Discussion and Analysis ”, to which investors are advised to pay attention. Contents Important Notice Section I Definitions 2 Section II Company Profile and Major Financial Indicators 5 Section III Board ’s Statement 9 Section IV Management Discussion and Analysis 12 Section V Corporate Governance, Environment and Society 66 Section VI Significant Events 77 Section VII Changes in Shares and Particulars of Shareholders 98 Section VIII Report on Review and Financial Statements 110 Section IX Documents Available for Inspection 154
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China Shenhua Energy Company Limited 2 Section I Definitions Unless the context otherwise requires, the following terms used in this report have the following meanings: China Shenhua/the Company China Shenhua Energy Company Limited the Group The Company and its subsidiaries China Energy China Energy Investment Corporation Limited China Energy Group China Energy and its subsidiaries (excluding the Group) Shendong Coal China Energy Shendong Coal Group Co., Ltd. Shendong Power Shenhua Shendong Power Co., Ltd. Zhunge ’er Energy Shenhua Zhunge ’er Energy Co., Ltd. Baorixile Energy China Energy Baorixile Energy Co., Ltd. Shengli Energy China Energy Beidian Shengli Energy Co., Ltd. Hangjin Energy China Energy Hangjin Energy Co., Ltd. Trading Group China Energy Trading Group Limited Shuohuang Railway China Energy Shuohuang Railway Development Co., Ltd. Railway Equipment China Energy Railway Equipment Co., Ltd. Huanghua Port China Energy Huanghua Harbour Administration Co., Ltd. Tianjin Port China Energy (Tianjin) Harbour Administration Co., Ltd. Zhuhai Port China Energy Zhuhai Harbour Administration Co., Ltd. Baotou Chemical China Energy Baotou Coal Chemical Co., Ltd. Jinjie Energy China Energy Jinjie Energy Co., Ltd. Guoyuan Power China Energy Guoyuan Power (Beijing) Co., Ltd. Xinjiang Energy China Energy Xinjiang Energy & Chemical Co., Ltd.
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2026 Interim Report 3 Section I Definitions (Continued) Chemical Company China Shenhua Coal Liquefaction and Chemical Company Limited Wuhai Energy China Energy (Wuhai) Energy Co., Ltd. Pingzhuang Coal Inner Mongolia Pingzhuang Coal (Group) Co., Ltd. Inner Mongolia Construction Investment Guodian Construction and Investment Inner Mongolia Energy Co., Ltd. Shenyan Coal China Energy Shaanxi Shenyan Coal Co., Ltd. Jinshen Energy Shanxi Province Jinshen Energy Co., Ltd. Baotou Mining China Energy (Baotou) Mining Co., Ltd. Shipping Company China Energy Shenhua Shipping (Beijing) Co., Ltd. Coal Trading Company Shenhua Coal Trading Co., Ltd. Port Company China Energy (Hebei) Port Co., Ltd. Finance Company China Energy Finance Co., Ltd. Capital Holdings China Energy Capital Holdings Co., Ltd. Western Energy China Energy Western Energy Investment Co., Ltd. E-commerce Company China Energy E-commerce Co., Ltd. JORC The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves SSE Shanghai Stock Exchange
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China Shenhua Energy Company Limited 4 Section I Definitions (Continued) HKEx The Stock Exchange of Hong Kong Limited Shanghai Listing Rules Rules Governing the Listing of Shares on the SSE Hong Kong Listing Rules Rules Governing the Listing of Securities on the HKEx China Accounting Standards for Business Enterprises The latest Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People ’s Republic of China and the related application guidance, interpretations and other related requirements IFRS Accounting Standards IFRS Accounting Standards issued by the International Accounting Standards Board Articles of Association Articles of Association of China Shenhua Energy Company Limited EBITDA Profit for the period + net finance costs + income tax + depreciation and amortisation – share of results of associates gearing ratio Total liabilities/total assets total debt to equity ratio [Long-term interest-bearing debt + short-term interest-bearing debt (including bills payable)]/[long-term interest-bearing debt +short-term interest-bearing debt (including bills payable) + total shareholder equity] RMB Renminbi unless otherwise specified Reporting Period January to June 2026 at the beginning of the period/at the end of the period at the beginning of the Reporting Period/at the end of the Reporting Period
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2026 Interim Report 5 Section II Company Profile and Major Financial Indicators I. INFORMATION OF THE COMPANY Chinese Name of the Companyʮ̡ Short Name of Chinese Name of the Company ʕग़ശ English Name of the Company China Shenhua Energy Company Limited Abbreviation/Short Name of English Name of the Company CSEC/China Shenhua Legal Representative of the Company On 24 March 2025, Mr. Lv Zhiren resigned as Chairman of the Board and executive director of the Company. The election of the new Chairman of the Board is in progress. Authorised Representative of the Company under the Hong Kong Listing Rules Zhang Changyan, Song Jinggang II. CONTACTS AND CONTACT DETAILS Secretary to the Board, Joint Company Secretary Representative of Securities Affairs, Joint Company Secretary Name Song Jinggang Zhuang Yuan Address 22 Andingmen Xibinhe Road, Dongcheng District, Beijing (Postal Code: 100011) 22 Andingmen Xibinhe Road, Dongcheng District, Beijing (Postal Code: 100011) Tel (8610) 5813 1088 (8610) 5813 3355 Fax (8610) 5813 1804/1814 (8610) 5813 1804/1814 E-mail 1088@csec.com ir@csec.com Office of the Board of the Company Hong Kong Office of the Company Address 22 Andingmen Xibinhe Road, Dongcheng District, Beijing (Postal Code: 100011) Room B, 54th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong Tel (8610) 5813 1088/3355 (852) 2578 1635 Fax (8610) 5813 1804/1814 (852) 2915 0638 III. PARTICULARS Registered Address of the Company 22 Andingmen Xibinhe Road, Dongcheng District, Beijing Postal Code of Registered Address of the Company 100011 Change of Registered Address of the Company N/A Office Address of the Company 22 Andingmen Xibinhe Road, Dongcheng District, Beijing Postal Code of Office Address of the Company 100011 Company Website www.csec.com or www.shenhuachina.com E-mail ir@csec.com
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China Shenhua Energy Company Limited 6 Section II Company Profile and Major Financial Indicators (Continued) IV. INFORMATION DISCLOSURE AND PLACE FOR DOCUMENT INSPECTION Designated newspaper for information disclosure China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily Website for publication of the interim report www.sse.com.cn and www.hkexnews.hk Place where the Company ’s interim report is available for inspection SSE, Office of the Board of the Company and Hong Kong Office of the Company V. BASIC INFORMATION ON SHARES Class of Shares Stock Exchange Abbreviation Stock Code A Share SSE China Shenhua 601088 H Share HKEx China Shenhua 01088 VI. OTHER INFORMATION Accounting Firm Engaged by the Company (A Shares) Name Ernst & Young Hua Ming LLP Office Address Level 17, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dongcheng District, Beijing, China Signing Auditors Zhang Siwei, Cui Naiwen Accounting Firm Engaged by the Company (H Shares) Name Ernst & Young (Public Interest Entity Auditor registered in accordance with the Accounting and Financial Reporting Council Ordinance) Office Address 27/F, One Taikoo Place, 979 King ’s Road, Quarry Bay, Hong Kong Signing Auditor Ng Siu Ki Ricky Share Registrar of the Company (A Shares) Name China Securities Depository and Clearing Corporation Limited Shanghai Branch Office Address 188 Yanggao South Road, Pudong New Area, Shanghai Share Registrar of the Company (H Shares) Name Computershare Hong Kong Investor Services Limited Office Address 17M Floor, Hopewell Centre, 183 Queen ’s Road East, Wanchai, Hong Kong
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2026 Interim Report 7 Section II Company Profile and Major Financial Indicators (Continued) VII. MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS Major accounting data Unit The first half of 2026 The first half of 2025 Change % After restatement Before restatement Revenue RMB million 189,338 175,423 138,109 7.9 Profit for the period RMB million 38,064 37,067 32,059 2.7 Profit for the period attributable to equity holders of the Company RMB million 31,054 30,478 26,706 1.9 Basic earnings per share RMB/share 1.448 1.438 1.344 0.7 Net cash inflow from operating activities RMB million 54,664 51,545 45,794 6.1 Return on total assets as at the end of the period % 4.1 4.1 4.7 Remained stable Return on net assets as at the end of the period % 6.8 5.9 6.6 Increased by 0.9 percentage point EBITDA RMB million 65,177 61,977 50,629 5.2 Unit As at 30 June 2026 As at 31 December 2025 Change % After restatement Before restatement Total assets RMB million 929,709 912,431 631,777 1.9 Total liabilities RMB million 370,874 300,203 146,310 23.5 Total equity RMB million 558,835 612,228 485,467 (8.7) Equity attributable to equity holders of the Company RMB million 459,227 519,946 412,576 (11.7) Total share capital as at the end of the period RMB million 21,689 19,869 19,869 9.2 Equity attributable to equity holders per share RMB/share 21.17 24.54 20.76 (13.7) Gearing ratio % 39.9 32.9 23.2 Increased by 7.0 percentage points Total debt to equity ratio % 22.1 14.7 6.8 Increased by 7.4 percentage points
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China Shenhua Energy Company Limited 8 Section II Company Profile and Major Financial Indicators (Continued) Reasons for restatement: In the first half of 2026, the Company completed the acquisition of equity interests in 12 target companies held in aggregate by China Energy, the controlling shareholder, and its wholly-owned subsidiary Western Energy (for details, please refer to the H Share announcements published by the Company on the website of the HKEx (www.hkexnews.hk) on 15 August and 19 December 2025, and 22 January, 28 January, 30 January, 5 February, 12 February, 12 March, 17 March and 30 March 2026). Except for Jinshen Energy, the other 11 target companies were included in the scope of consolidation of the financial statements of the Company. The above acquisition falls under a business combination under common control. The Company has made retrospective adjustments to the consolidated financial statements for the comparative periods in accordance with the relevant provisions. VIII. DIFFERENCES IN ACCOUNTING DATA UNDER DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS Unit: RMB million Net profit attributable to equity holders of the Company Net assets attributable to equity holders of the Company The first half of 2026 The first half of 2025 As at 30 June 2026 As at 31 December 2025 After restatement Before restatement After restatement Before restatement Under China Accounting Standards for Business Enterprises 28,715 27,583 24,641 450,933 512,016 409,107 Adjustments for: Simple production maintenance, safety production and other related expenditures 2,339 2,895 2,065 8,294 7,930 3,469 Under IFRS Accounting Standards 31,054 30,478 26,706 459,227 519,946 412,576 Explanation on Differences in Domestic and Overseas Accounting Standards: Pursuant to relevant regulations of the related governmental authorities in the PRC, the Group accrued provisions for simple production maintenance, safety production and other related expenditures, which are recognised as current expenses and separately recorded as a specific reserve in shareholders ’ equity. On utilisation of the specific reserve as fixed assets within the stipulated scope, the full amount of accumulated depreciation is recognised at the same time when the cost of the relevant assets is recorded. Under IFRS Accounting Standards, these expenses are recognised when incurred. Relevant capital expenditure is recognised as property, plant and equipment when incurred and depreciated according to the applicable depreciation method. The effect on deferred tax arising from such differences has also been reflected.
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2026 Interim Report 9 Section III Board ’s Statement Dear shareholders, investors and friends from all walks of life who care about and support China Shenhua: In the first half of 2026, the Company thoroughly studied and implemented the spirit of General Secretary Xi Jinping ’s important speeches and instructions, firmly established and practised the correct concept of political achievements, adhered to the responsibility and mission of ensuring energy supply, proactively responded to changes in external market conditions, earnestly implemented the work deployments for the “Year of Management Strengthening ” and “Year of Quality and Efficiency Improvement ”, and fully promoted the post-merger integration of newly acquired assets, thus achieving further enhancement of the Company ’s development quality and investment value. In the first half of the year, the Company recorded profit for the period attributable to equity holders of the Company of RMB31,054 million, representing a year-on-year increase of 1.9%, and a total market capitalisation at the end of the period of RMB832.6 billion. Production and operation achieved steady progress. The Company continued to optimise the connectivity of coal mines, improved the efficiency of mining operations, and consolidated the basis of stable and high production output, so as to achieve stable and high yield of self-produced coal and year-on-year increase of the sales volume of purchased coal. The Company strictly performed medium – and long-term coal contracts and fulfilled its social responsibility of stabilising coal supply at a guaranteed price. The Group resolutely fulfilled its responsibility and mission of ensuring energy supply, strongly supported regional economic and social energy demand, and completed the task of ensuring energy supply during important periods and in key regions with high quality. The Group continued to deepen the efficient synergy among road, port and shipping routes, and the integrated outbound coal transportation volume reached the best level in history for the same period. The trend of increasing production and efficiency of coal chemical industry became prominent, the sales volume of main products increased significantly, and the value of high-end products was continuously released. The Company accelerated the construction of important projects in core industries, further consolidated the advantages of integrated operation, and enhanced the resources connection and energy supply capabilities. Capital operation empowered development. The Company successfully completed the largest purchase of assets through issuance of shares in the history of the A-share market in eight months. The scale of the Company ’s coal, power generation and coal chemical segments have increased significantly. Its core strengths have been continuously enhanced, and the organic integration of preservation and appreciation of state-owned capital with the sustainable development of a listed company has been realised, which set a benchmark for the restructuring of state-owned enterprises. The Company spared no effort in promoting the post-merger integration of newly acquired assets, strengthened business synergy, optimised capital structure and improved overall operating performance. The Company adhered to the principle of active return to the shareholders, with the total amount of cash dividend for the year 2025 reaching 79.1% of the net profit attributable to shareholders of the Company under China Accounting Standards for Business Enterprises. The Company continued to promote the implementation of the key tasks of “11257” market capitalisation management system and continuously improved the Company ’s brand influence and investment value. The Company ranked first among listed companies of the energy and chemical sector with a brand value of RMB241,505 million, and ranked among the top three listed companies in the energy industry in terms of total market capitalisation in China. Technological innovation gained momentum. We made great efforts in the clean and efficient utilisation of coal, and made outstanding achievements in major scientific and technological innovation. The “Key Technologies and Application of Green and Smart Development of Scarce and High-Quality Leftover Coal and Coalbed Methane ” project won the second prize of the National Science and Technology Progress Award; the trial run of 35,000-ton heavy-duty group trains was successfully completed under the “Research and Application of Heavy-haul Train Group Operation Control System Technology ” pilot project for building China into a country with strong transportation, setting a number of industry records; the project of “Key Technology and Engineering Verification of Ammonia Co-firing in 600MW Coal-fired Power Generation Boilers ” passed the appraisal of the Chinese Society for Electrical Engineering, and reached an internationally leading level overall; the “Key Technology and Application Demonstration of Coal Chemical Industry Gasified Crude Slag for Saline-alkali Soil Improvement ” passed the scientific and technological appraisal by China Petroleum and Chemical Industry Federation, and has reached the international advanced level as a whole. The Company promoted the two-way empowerment of artificial intelligence and energy, deepened the implementation of “AI+” projects, and created more strategic high-value scenarios and high-quality data sets.
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China Shenhua Energy Company Limited 10 Section III Board ’s Statement (Continued) Industrial upgrade was promoted in depth. The Company unswervingly promoted the green transformation of the industry, coordinated the energy-saving and carbon-reducing transformation of each industry chain of the coal, electricity and coal chemical industry, and actively transformed into a clean, low-emission, high-efficiency intensive operation. The Company seized the opportunities arising from new energy development, continued to explore the development path of multi-energy integration, and actively created typical application scenarios such as multi-energy complementarity between thermal power and new energy, and supply of green power supporting coal chemical industry, with a total of 247 new energy projects currently planned, under construction or in operation, and the installed capacity of new energy power generation in external operation increased to 2,712 MW. The Company continued to promote the construction of green mines, continuously improved the level of ecological management of mines and efficient use of resources, and maintained a leading position in green mine production capacity in China. With outstanding achievements in energy conservation management, the Company was awarded the honour of the “Advanced Enterprise of Energy Conservation and Emission Reduction for Coal Industry ” issued by the China Coal Industry Association for several consecutive years. The Company proactively deployed in strategic emerging industries, adopted various measures to accelerate the development of new quality productive forces, and promoted the optimisation and upgrading of industrial structure. Steady improvement in governance efficiency. We implemented the requirements for further deepening the reform of state-owned assets and state-owned enterprises, continuously improved the modern enterprise system with Chinese characteristics, improved the corporate governance mechanism that is legally defined, transparent, coordinated, and effectively balanced, continued to promote the standardisation of the Board of Directors, and gave full play to the role of the Board in formulating strategies, making decisions and preventing risks. The Company strictly implemented the overall work deployment of the SASAC of the State Council on the construction of the board of directors of central state-owned enterprises, took the lead in exploring the practice of the first batch of board of directors ’ review in China based on the Company ’s industrial layout and operation management characteristics, systematically established the evaluation framework, improved the evaluation dimensions, and consolidated the construction of the board of directors ’ evaluation system foundation. The Company continued to optimise the top-level design and institutional system of ESG, and consolidated the foundation of institutional management. The Company actively participated in the formulation of a number of ESG group standards, contributing to the standardised and regulated development of ESG practices across the industry. At present, the international political and economic landscape is undergoing profound changes, and competition among major powers continues to intensify, while international energy prices fluctuate sharply, and the stability of the energy supply faces challenges. China ’s economy is in a critical period of transformation of growth drivers and development patterns. The contradiction between strong supply and weak demand is prominent, and the foundation for a stable and sound economy still needs to be consolidated. The transformation and evolution of the energy industry are accelerating, with market-oriented reforms being further deepened and iterations of new technologies being accelerated, and various risks and challenges are intertwined. The second half of the year is a critical period in the first year of the “15th Five-Year Plan ”. The Company will set its targets for the whole year, work hard and forge ahead under pressure, and put emphasis on the six focus areas of “ensuring safety, growing steadily, strengthening innovation, promoting transformation, deepening reform and risk prevention ” to ensure the smooth completion of each target mission for the year. Firstly, we will strictly adhere to the bottom line of safety and build a solid foundation for ensuring energy supply. The Company will continue to thoroughly study and implement the important discourse and important instructions of General Secretary Xi Jinping on production safety, and pay close attention to all aspects of production safety. The Company will strengthen equipment maintenance, operation and management, identify and address potential hazards in key regions, take effective measures to prevent natural disasters, and improve the closed-loop emergency response system to ensure a stable and reliable supply of coal and electricity, and safe and steady operations of the transportation and coal chemical businesses. The Company will make overall plans for production safety, compliance safety and ecological safety, build safety protection barriers in all aspects, and ensure high-quality and sustainable development of the enterprise with high-standard safety.
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2026 Interim Report 11 Section III Board ’s Statement (Continued) Secondly, the Company will focus on its main responsibilities and main business and maintain a stable growth momentum of quality improvement. The Company will step up its efforts to promote the succession of high-quality resources and the release of advanced production capacity in core coal areas to consolidate the fundamentals of the coal industry, and fully advance the construction of Xinjie No. 1 Mine and No. 2 Mine, the Tarangaole Coal Mine, the Dabaodang Coal Mine and the Hongshaquan No. 2 Coal Mine; the Company will promote the expansion and transformation of core trunk lines such as the Shuohuang Railway, and accelerate the construction of key projects such as the Huanghua Port Phase V and the Tianjin Port Phase II, and continue to improve the collection and distribution system; the Company will seize the opportunities arising from project construction and promote the construction of key coal chemical engineering projects. Adhering to the principles of expanding sources and increasing revenue, optimising management and control, and exploring potential, the Company will comprehensively promote cost reduction and efficiency enhancement, quality and efficiency enhancement, and continue to improve the quality and efficiency of core operations. Thirdly, we will strengthen innovation and empowerment and cultivate new sustainable development drivers. We will promote the in-depth integration of technological innovation, management innovation and industrial development, and strive to cultivate new quality productive forces in the energy sector. Taking advantage of the opportunities arising from the preparation of the “15th Five-Year Plan ”, the Company will systematically improve the corporate innovation and development system, focus on key areas such as production quality improvement, energy saving and carbon reduction, and intelligent upgrading, and develop key core technologies. We will deepen the application and transformation of achievements on strategic emerging industry topics, pay close attention to cutting-edge technologies in the new energy field, and empower the development of strategic emerging industries. Fourthly, we will focus on green transformation and optimise the industry development deployment. Adhering to the strategic objective of “dual carbon ”, the Company will promote the clean and efficient use of coal and build a whole-chain green production and operation system. The Company will continue to promote the construction of green mines and coordinate ecological protection and high-efficiency production. We will promote the flexible and low-carbon transformation of coal power generation, and vigorously expand new business formats and models such as integrated energy and multi-energy complementarity. The Company will accelerate the optimisation and upgrading of industrial structure, steadily promote the quality improvement of traditional industries and the empowerment of emerging business, and accelerate the digitalisation, green development and intelligent transformation of enterprises. Fifthly, we will deepen reform and consolidate the long-term value foundation. The Company will improve the modern corporate governance system with Chinese characteristics, deepen the reform of system and mechanism, optimise resource allocation, remedy weaknesses in management, and continuously enhance the capability of modern operation and governance. The Company will strengthen the market value management by further optimising the “11257 ” market capitalisation management system, and standardise the use of market instruments such as dividend distribution, and mergers and acquisitions, so as to safeguard the long-term interests of shareholders. The Company will continue to optimise the Board of Directors ’ operation, and promote the corporate governance to make a leap towards “substantive and effective ”. The Company will systematically promote enhancement in ESG management, strengthen the management of key areas in climate change management, and empower the Company for sustainable development with high-standard ESG governance. Sixthly, various risks will be strictly controlled to ensure the stable and long-term development of the Company. The Company will firmly establish the concept of global risk control, create a comprehensive and normalised risk prevention and control system, and make overall plans to prevent and mitigate various risks in areas including operation, market and compliance. The Company will improve the closed-loop working mechanism for risk analysis, early warning and handling to accurately predict potential risks arising from market fluctuations and policy adjustments. The Company will continue to improve the internal control and compliance management system, strictly comply with industry regulations and market rules, and standardise operational decision-making and business procedures, so as to ensure the stable and long-term operation and development of the enterprise. Board of Directors China Shenhua Energy Company Limited 28 August 2026
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China Shenhua Energy Company Limited 12 Section IV Management Discussion and Analysis I. INDUSTRY IN WHICH THE COMPANY OPERATED AND ITS PRINCIPAL BUSINESSES DURING THE REPORTING PERIOD (I) Competition and Development Trend in the Industry 1 1. Macroeconomic Environment In the first half of 2026, the CPC Central Committee, with Comrade Xi Jinping at its core, united and led the entire Party and the people of all ethnic groups across the country in forging ahead with determination and striving with vigour. By persistently coordinating both domestic and international situations, balancing development and security, and effectively responding to various external shocks and internal difficulties, China ’s economy demonstrated a development trend characterised by new growth drivers and an optimised economic structure, exhibiting strong resilience and vitality. Calculated at constant prices, the gross domestic product for the first half year increased by 4.7% as compared with the corresponding period of last year. 2. Coal Market Environment (1) China ’s thermal coal market In the first half of 2026, China ’s commercial coal consumption recorded a year-on-year increase, the overall energy supply remained stable, and the coal prices fluctuated upwards. As at June 2026, the medium and long-term contract price of the National Coal Seaborne Thermal-Coal Price Index (NCEI) ( ᅰ) (5,500 kcal) was RMB697 per tonne, representing an increase of RMB3 per tonne as compared with that in December of last year; the average medium and long-term contract price for the first half of the year was approximately RMB686 per tonne, representing an increase of RMB4 per tonne as compared with the same period of last year. As at the end of June, the transaction price for thermal coal (5,500 kcal) at Qinhuangdao Port was RMB842 per tonne, representing an increase of 22.6% as compared with that at the end of last year. The average transaction price in the first half of the year was approximately RMB772 per tonne, representing a year-on-year increase of approximately 12.7%. 1 This section is for reference only and does not constitute any investment advice. The Company has used its best endeavours to ensure the accuracy and reliability of information in this section, but does not assume any liability or provide any form of guarantee for the accuracy, completeness or validity of all or part of its content. If there is any error or omission, the Company does not assume any liability. The content in this section may contain certain forward-looking statements based on subjective assumptions and judgements of future political and economic developments; therefore, there may exist uncertainties in these statements. The Company does not undertake any responsibility for updating the information or correcting any subsequent error that may appear. The opinions, estimates and other data set out herein can be amended or withdrawn without further notice. The data contained in this section are mainly derived from sources such as the National Bureau of Statistics, China Coal Market Network, China Coal Resources Network, China Electricity Council, and Coal Transportation and Distribution Association, etc.
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2026 Interim Report 13 Section IV Management Discussion and Analysis (Continued) The first half of 2026 Year-on-year change % Raw coal output of above-scale industries (100 million tonnes) 23.7 (1.7) Coal import (100 million tonnes) 2.3 1.7 National coal transportation volume by railways (100 million tonnes) 13.9 4.1 In respect of the supply side, the industrial raw coal output above designated scale in China was 2,370 million tonnes in the first half of the year, representing a year-on-year decrease of 1.7%, with a year-on-year decrease of 9.7% in raw coal output under tightened workplace safety situation in June. The raw coal output in Inner Mongolia Autonomous Region, Shanxi Province, Shaanxi Province and Xinjiang Uygur Autonomous Region accounted for 81.9% of the raw coal output of above scale industries nationwide, representing a year-on- year increase of 0.5 percentage point. China ’s national coal inventories at major stages of the supply chain remained at a high level. Changes in the international energy market caused periodic disruptions to China ’s coal imports. In the first half of the year, the total imported coal was 230 million tonnes, representing a year-on-year increase of 1.7%, of which the thermal coal imports amounted to 150 million tonnes, representing a year-on-year decrease of 4.5%. The coal imports from Russia, Australia and Indonesia each recorded a year-on-year decrease. In respect of the demand side, China ’s commercial coal consumption increased by 1.3% year-on-year during the first half of 2026, of which the commercial coal consumption of power generation industry increased by 2.0% year-on-year, accounting for approximately 57.8% of the total coal consumption; commercial coal consumption in the chemical industry increased by 9.9% year-on-year; and that in steel and building materials sectors experienced a year-on-year decrease.
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China Shenhua Energy Company Limited 14 Section IV Management Discussion and Analysis (Continued) (2) International thermal coal market In the first half of 2026, the geopolitical conflict among the United States, Israel and Iran continued to disrupt the global energy landscape. The intensifying logic of energy demand substitution, coupled with expectations of extreme weather conditions, prompted a number of countries to restart and commission additional coal-fired power generating units, thereby driving an increase in global coal consumption against the prevailing trend. Incremental coal supply remained limited. According to statistical data, in the first half of 2026, the total coal production in India was 0.58 billion tonnes, representing a year-on- year decrease of 2.0%; Indonesia reduced its coal production quotas, with coal production amounting to 0.37 billion tonnes, representing a year-on-year decrease of 4.2%; coal production in the United States was 0.232 billion tonnes, representing a year-on-year decrease of 1.8%; coal production in Russia was 0.21 billion tonnes, representing a year-on-year decrease of 1.9%; the coal production in Mongolia was 62.48 million tonnes, representing a year-on-year increase of 52.4%. In the first half of 2026, amid the tightening coal export policies in Indonesia, its coal export was approximately 232 million tonnes, representing a year-on-year decrease of 3.2%; coal exports from Australia, Russia, the United States and Mongolia all recorded year-on-year growth. Among global coal-importing countries, the increase in imports was primarily attributable to Asian countries, including South Korea, Japan and Vietnam. International coal prices fluctuated upwards. As at the end of June 2026, the FOB spot price of thermal coal (5,500 kcal) at Newcastle Harbour increased by 32.5% as compared with that at the end of last year and by 45.7% as compared with that at the end of June of last year. 3. Power Market Environment In the first half of 2026, the national power supply system operated safely and stably and the power supply and demand were generally balanced. The national power consumption exhibited the characteristics of an increase in total volume, an optimised structure and new growth drivers. China ’s national power consumption reached 5,099.9 billion kWh in the first half of the year, representing a year-on-year increase of 5.3%, with the growth rate increasing by 1.6 percentage points year-on-year. Power consumption in the secondary industry increased by 5.1% year-on-year, accounting for 64.8% of national power consumption and contributing 61.7% to the growth in national power consumption, primarily driven by high-tech and equipment manufacturing industries. Power consumption in the tertiary industry increased by 8.0% year-on-year. Power consumption attributable to new growth drivers increased rapidly, among which the aggregate power consumption of two new business sectors, namely internet data services and battery charging and swapping services, accounted for 2.6% of national power consumption and contributed 17.2% to the incremental increase in national power consumption.
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2026 Interim Report 15 Section IV Management Discussion and Analysis (Continued) The structure of installed capacity of power generation continued to undergo a green and low-carbon transition, with thermal power generation growing year-on- year. As at the end of June 2026, the national installed capacity of power generation reached 4,040 GW, of which the installed capacity of non-fossil energy power generation reached 2,520 GW, representing 62.4% of total installed capacity and a year-on-year increase of 1.5 percentage points, while that of coal-fired power accounted for 31.5%. In the first half of the year, newly added installed capacity of power generation reached 160 GW, with newly added installed capacity of wind power and solar power generation accounting for 70%, although the growth rate slowed. The national power generation output of power plants above designated scale reached 4,750.1 billion kWh, representing a year-on-year increase of 3.5%, of which the thermal power generation reached 3,028.2 billion kWh, representing a year-on-year increase of 2.9% and accounting for 63.8% of total power generation. The increment in full-caliber non-fossil energy power generation accounted for 70.7% of the increment in total power generation, and coal-fired power generation accounted for 49.7% of the total power generation. The average utilisation hours of power generation equipment of power plants in China with the installed capacity of 6,000 kW and above were 1,392 hours, decreasing by 113 hours year-on-year. Among them, the average utilisation hours of thermal power equipment were 1,895 hours, decreasing by 73 hours year-on-year (the average utilisation hours of coal power equipment were 1,998 hours, decreasing by 59 hours year-on-year). Power transmission across regions and provinces recorded steady growth. In the first half of the year, national power transmission across regions reached 462.1 billion kWh, representing a year-on-year increase of 4.9%, of which power sent out from Northwest region was 212.4 billion kWh, representing a year-on-year increase of 17.2% and accounting for 46.0% of the national power transmission across regions. National power transmission across provinces reached 981.2 billion kWh, representing a year-on-year increase of 2.7%, of which the net power sent out from Inner Mongolia Autonomous Region exceeded 100 billion kWh; and that from Xinjiang Uygur Autonomous Region, Yunnan Province and Shanxi Province all exceeded 60 billion kWh. In the first half of the year, the aggregate trading volume in the national power market reached 3,684.8 billion kWh, representing a year-on-year increase of 24.2%.
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China Shenhua Energy Company Limited 16 Section IV Management Discussion and Analysis (Continued) 4. Outlook for the Second Half of the Year In 2026, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, China ’s economic efforts are to adhere to the general principle of pursuing progress while ensuring stability, fully, accurately and comprehensively implement the new development philosophy, accelerate the establishment of a new development paradigm, better coordinate the domestic and international imperatives, coordinate development and security, deepen reform and opening up, accelerate the conversion of old and new growth drivers, effectively implement a more proactive fiscal policy and a moderately accommodative monetary policy, give full play to the effectiveness of existing policies, timely formulate and introduce pragmatic and effective incremental policies, strengthen counter-cyclical adjustments, intensify efforts to expand domestic demand and optimise supply, effectively safeguard and improve people ’s livelihoods, enhance development momentum and stimulate social vitality, promote the economy ’s continued development towards new, higher-quality and more positive outcomes, and strive to secure a sound start to the Fifteenth Five-Year Plan. In respect of the coal industry, it is expected that the impact of international geopolitical conflicts will gradually subside in the second half of the year, while coal demand in China will return to seasonal fluctuations. High temperatures in the third quarter and coal demand from the chemical industry will support coal demand. Safety inspections and regulatory policies on production capacity will continue to be implemented, resulting in relatively limited flexibility in coal supply. Total coal imports for the year are expected to remain at a high level. In general, China ’s coal market is expected to experience a relatively tight supply-demand balance in the second half of 2026, and coal market prices are expected to fluctuate within a reasonable range with a generally strengthening trend, subject to volatility arising from factors such as the intensity of high temperatures and unexpected incidents. In respect of the power industry, China ’s macroeconomy will continue to maintain a development trend towards new and higher-quality growth. According to the estimates of the China Electricity Council, China ’s national power consumption will increase by 5% to 6% year-on-year in the second half of the year. Newly added installed capacity of power generation for the year is expected to reach 400 GW. The national power supply and demand are expected to remain broadly balanced. In the event of widespread extreme high-temperature weather, power shortages may arise during peak periods in certain regions; however, such shortages can be substantially eliminated through measures including inter-provincial power purchases, mutual assistance across provinces and regions and demand-side response.
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2026 Interim Report 17 Section IV Management Discussion and Analysis (Continued) (II) Principal Businesses and Operation Model of the Company during the Reporting Period China Shenhua Energy Company Limited was established in Beijing in November 2004 and was listed on the HKEx and the SSE in June 2005 and October 2007, respectively. The Group is principally engaged in production and sale of coal and electricity, railway, port and shipping transportation, and coal chemical businesses. The integration of coal, power, railway, port, shipping and coal chemicals into one unified operation chain is the Group ’s unique operation and profitability model. The Group owns high-quality coal resources located in Shendong Mines, Zhunge ’er Mines, Zhundong Mines and Xinjie Mines, etc. As at 30 June 2026, the Group had coal reserves of 101.08 billion tonnes and recoverable coal reserves of 35.77 billion tonnes under the PRC Standard. The Group controls and operates clean coal-fired power generators with high capacity and advanced technical parameters. The Group controlled and operated power generators with an installed capacity of 70,636 MW as at 30 June 2026. The Group controls and operates a network of concentric and radial transportation railways around the major coal production bases in western Shanxi, northern Shaanxi and southern Inner Mongolia and the “Shenshuo – Shuohuang Line ”, a major channel for coal transportation from western to eastern China, as well as Huangda Railway, a new energy channel in Bohai Rim, with total railway operating mileage reaching 2,408 km. The Group also controls and operates a number of ports and terminals (with a total ship loading capacity of approximately 270 million tonnes/year), such as Huanghua Port, owns the fleet of ships with approximately 3.7 million tonnes of deadweight capacity and operates a number of modern coal chemical production facilities, including coal-to-olefins facilities with approximately 1.88 million tonnes/year of production capacity and coal-to-liquids facilities with approximately 1.08 million tonnes/year of production capacity. The Group ’s technology of coal exploitation and production safety has secured a leading position in the global market, and those of clean coal-fired power generation, heavy-haul railway transportation and modern coal chemicals have secured a leading position in the domestic market. During the Reporting Period, the Company completed the acquisition of equity interests in the 12 target companies held in aggregate by China Energy and Western Energy. The Group’s coal resource and reserves, installed capacity of power generating units, production capacity of coal chemical production facilities and shipping capacity increased substantially, with a significant increase in relevant businesses in terms of products and services. As the Group further consolidated its core advantages of integrated operations and market position, its foundation for development and sources of earnings have become more stable and diversified. Explanation of significant new non-principal businesses of the Company during the Reporting Period: ½ Applicable ✓ Not applicable
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China Shenhua Energy Company Limited 18 Section IV Management Discussion and Analysis (Continued) II. DISCUSSION AND ANALYSIS ON OPERATION RESULTS During the first half of the year, the Company completed the acquisition of equity interests in the 12 target companies held in aggregate by the controlling shareholder of the Company, China Energy, and its wholly-owned subsidiary, Western Energy and continued to diligently advance asset integration and management integration, with its asset base growing continuously and its profitability improving steadily. Against the backdrop of a complex and challenging internal and external operating environment, by adhering to lean management and focusing on improving quality and efficiency, the Company maintained its comprehensive and steady production safety situation, and continued to realise efficiency of integrated operations, with the operating results for the first half of the year exceeding expectations and outperforming those for the same period of last year. In the first half of 2026, the Group ’s revenue amounted to RMB189,338 million (the first half of 2025: RMB175,423 million (restated)), representing a year-on-year increase of 7.9%; profit before income tax amounted to RMB48,028 million (the first half of 2025: RMB46,460 million (restated)), representing a year-on-year increase of 3.4%. The profit for the period attributable to equity holders of the Company was RMB31,054 million (the first half of 2025: RMB30,478 million (restated)), representing a year-on-year increase of 1.9%; and basic earnings per share was RMB1.448 per share (the first half of 2025: RMB1.438 per share (restated)), representing a year-on-year increase of 0.7%. The status of completion of adjusted 2026 annual business targets of the Group is as follows: Project Unit Targets of 2026 (Adjusted) Completion in the first half of 2026 Percentage of Completion % Commercial coal production 100 million tonnes 5.134 2.499 48.7 Coal sales volume 100 million tonnes 6.181 3.002 48.6 Power generation 100 million kWh 2,881 1,366.4 47.4 Revenue RMB100 million 3,600 1,893.38 52.6 Cost of sales RMB100 million 2,625 1,326.46 50.5 Total selling expenses, general and administrative expenses, R&D costs and net finance costs RMB100 million 255 101.66 39.9 Change in unit production cost of self-produced coal / Year-on-year increase of approximately 4% Year-on-year decrease of 2.6% / Note: The 2026 business targets are subject to risks, uncertainties and assumptions. The annual actual outcome may differ materially from the targets. Such statements do not constitute substantial commitments to investors. Investors should be aware that undue reliance on or use of such information may lead to investment risks.
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2026 Interim Report 19 Section IV Management Discussion and Analysis (Continued) III. ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING PERIOD There was no substantial change in the core competitiveness of the Group during the Reporting Period. The core competitiveness of the Group mainly includes: (1) the vertically integrated business model covering coal, power, railway, port, shipping and coal chemical operations; (2) high-quality and abundant coal resources; (3) a management team with the dedication to the principal business of the Company and an advanced operation philosophy; (4) leading industrial technologies and technological innovation capabilities in China and overseas in areas including green coal mining, clean coal-fired power generation, heavy-haul railway transportation, smart port operation and development and application of integrated modern coal chemical technology. IV. MAJOR OPERATION RESULTS DURING THE REPORTING PERIOD (I) Analysis on Principal Business 1. Analysis on Changes in the Major Items in the Consolidated Statement of Profit or Loss and Other Comprehensive Income and Condensed Consolidated Statement of Cash Flows Unit: RMB million Item The first half of 2026 The first half of 2025 (restated) Change % Revenue 189,338 175,423 7.9 Cost of sales (132,646) (121,673) 9.0 General and administrative expenses (7,063) (7,763) (9.0) Other gains and losses 103 480 (78.5) Other expenses (812) (306) 165.4 Interest income 1,091 1,414 (22.8) Finance costs (2,723) (2,486) 9.5 Share of results of associates 1,654 2,268 (27.1) Net cash generated from operating activities 54,664 51,545 6.1 Net cash used in investing activities (36,007) (31,432) 14.6 Net cash used in financing activities (17,296) (5,654) 205.9 (1) Reasons for the changes in revenue The revenue of the Group in the first half of 2026 recorded a year-on-year increase of 7.9%. The main reasons for the increase are: Ǻ Affected by the supply and demand situation of the coal market, sales volume and average selling price of coal of the Group increased by 1.8% and 4.5%, respectively, resulting in a year-on-year increase in the sales revenue of coal.
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China Shenhua Energy Company Limited 20 Section IV Management Discussion and Analysis (Continued) ǻ Affected by factors including equipment upgrading and modification and production scheduling, the sales volumes of the Group ’s principal coal chemical products recorded a year-on-year increase, with sales volumes of oil products and ethylene glycol increasing by 387.1% and 29.8%, respectively, resulting in a year-on-year increase in the revenue from the coal chemical business. Ǽ Affected by factors including the commissioning of new generating units, the Group ’s power sales volume increased by 5.5% year-on-year, resulting in a year-on-year increase in the revenue from power sales. ǽ The major operating indicators of the Group ’s transportation business all recorded year-on-year increases, resulting in a year-on-year increase in the revenue from transportation business. Major operating indicators Unit The first half of 2026 The first half of 2025 (restated) Change % (I) Coal 1. Commercial coal production Million tonnes 249.9 259.2 (3.6) 2. Coal sales Million tonnes 300.2 294.9 1.8 Of which: Sa les of self- produced coal Million tonnes 244.3 252.7 (3.3) Sa les of purchased coal Million tonnes 55.9 42.2 32.5 (II) Transportation 1. Transportation turnover of self- owned railway Billion tonne km 163.2 152.8 6.8 2. Loading volume at Huanghua Port Million tonnes 112.1 107.6 4.2 3. Loading volume at Tianjin Coal Dock Million tonnes 22.4 21.8 2.8 4. Shipping volume Million tonnes 142.0 128.5 10.5 5. Shipment turnover Billion tonne nautical miles 136.5 125.6 8.7 (III) Power Generation 1. Gross power generation Billion kWh 136.64 129.42 5.6 2. Total power output dispatch Billion kWh 128.08 121.37 5.5 (IV) Coal chemical 1. Polyolefin sales volume Ten thousand tonnes 107.4 105.4 1.9 2. Oil products sales volume Ten thousand tonnes 49.2 10.1 387.1 3. Methanol sales volume Ten thousand tonnes 36.2 35.0 3.4 4. Ethylene glycol sales volume Ten thousand tonnes 15.7 12.1 29.8 Note: During the Reporting Period, the Company completed the acquisition of equity interests in 12 target companies held in aggregate by China Energy, the controlling shareholder, and its wholly-owned subsidiary Western Energy. The Group ’s major operating indicators for 2026 include the relevant data of the newly consolidated assets other than Jinshen Energy. To ensure the comparability of business data, the Group has made retrospective adjustments to the major operating indicators for the comparable period (the same applies hereinafter).
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2026 Interim Report 21 Section IV Management Discussion and Analysis (Continued) (2) Reasons for the changes in cost of sales The first half of 2026 The first half of 2025 (restated) Change of the amount Breakdown of cost items Amount Percentage Amount Percentage RMB million % RMB million % % Cost of purchased coal 22,367 16.8 16,986 14.0 31.7 Raw materials, fuel and power 21,241 16.0 18,676 15.3 13.7 Personnel expenses 19,465 14.7 21,908 18.0 (11.2) Repair and maintenance 4,989 3.8 5,805 4.8 (14.1) Depreciation and amortisation 14,667 11.1 14,330 11.8 2.4 Transportation charges 11,985 9.0 9,554 7.9 25.4 Tax and surcharges 13,033 9.8 11,248 9.2 15.9 Others 24,899 18.8 23,166 19.0 7.5 Total cost of sales 132,646 100.0 121,673 100.0 9.0 In the first half of 2026, the Group ’s cost of sales represented a year-on-year increase of 9.0%, of which: Ǻ The main reason for the year-on-year increase in the cost of purchased coal: the increase in sales volume and procurement cost of purchased coal. ǻ The main reasons for the year-on-year increase in the cost of raw materials, fuel and power: the increase in power output dispatch and the increase in coal purchase price led to an increase in the cost of coal purchase; and the corresponding year-on-year increase in raw materials, fuel and power costs resulting from the increase in sales volume of coal chemical products. Ǽ The main reason for the year-on-year increase in transportation charges: the increase in vessel leasing fees, external railway transportation charges and others. ǽ The main reason for the year-on-year increase in tax and surcharges: the increase in consumption tax resulting from the increase in sales volume of oil products, as well as the increase in resource tax.
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China Shenhua Energy Company Limited 22 Section IV Management Discussion and Analysis (Continued) (3) Other items of the income statement Ǻ The main reason for the year-on-year decrease in general and administrative expenses: the decrease in labour costs. ǻ Other gains and losses amounted to a net gain in aggregate. The year-on- year decrease was primarily attributable to a higher investment income generated from the disposal of subsidiaries in the corresponding period of the previous year. Ǽ The main reason for the year-on-year increase in other expenses: the increase in late payment surcharges and other expenses of the Group. ǽ The main reason for the year-on-year decrease in interest income: the decrease in the Group ’s deposit balance. Ǿ The main reason for the year-on-year increase in finance costs: as affected by exchange rate fluctuations, the Group ’s foreign exchange losses increased. ǿ The main reason for the year-on-year decrease in the share of results of associates: the decrease in the Company ’s investment income from associates. (4) Items of the cash flow statement The Group formulated capital management policies that aimed to achieve maximised interests for the shareholders and maintained a sound capital structure while reducing the costs of capital under the premise of safeguarding the operation on an on-going basis and capital expenditure, and conducted investment activities in accordance with the policy of the Company. Ǻ Net cash generated from operating activities: net cash inflow of RMB54,664 million in the first half of 2026 (net cash inflow in the first half of 2025 of RMB51,545 million (restated)), representing a year-on- year increase of 6.1%. It was mainly due to a year-on-year increase in the Group ’s income from coal, coal chemical, transportation and other operations. ǻ Net cash used in investing activities: net cash outflow in the first half of 2026 was RMB36,007 million, primarily used for the acquisition and construction of fixed assets, intangible assets and other long- term assets, as well as the purchase of structured deposit products, representing an increase of 14.6% compared with the net outflow in the first half of 2025: RMB31,432 million (restated), which was mainly due to the Company ’s purchase of the structured deposit products and increase in capital investment in associates. Ǽ Net cash used in financing activities: net cash outflow of RMB17,296 million in the first half of 2026, representing an increase of 205.9% as compared with the net outflow of RMB5,654 million in the first half of 2025 (restated), which was primarily due to payment of the cash consideration for the acquisition of the equity interests in the relevant target companies held by the controlling shareholder of the Company, China Energy, and its wholly-owned subsidiary, Western Energy.
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2026 Interim Report 23 Section IV Management Discussion and Analysis (Continued) (5) Research and development costs Expensed research and development expenditure in the period (RMB million) 1,010 Capitalised research and development expenditure in the period (RMB million) 560 Total research and development expenditure (RMB million) 1,570 Ratio of capitalised research and development expenditure (%) 35.7 Percentage of total research and development expenditure to revenue (%) 0.8 Number of research and development personnel in the Company (number of persons) 6,245 Ratio of research and development personnel to the total number of persons in the Company (%) 5.0 In the first half of 2026, the research and development expenditure of the Group amounted to RMB1,570 million (the first half of 2025: RMB1,685 million (restated)), representing a year-on-year decrease of 6.8%. During the Reporting Period, the Group ’s research and development expenditure was primarily used for the research and development of technological innovation projects across various industries, including safe, efficient and intelligent coal mining, the clean and comprehensive utilisation of coal, mixed ammonia combustion in coal- fired boilers, operation control system of heavy-haul train group, technology development and application in coal chemical industry, among others. During the Reporting Period, the Group was granted 726 new patents, of which 381 were invention patents. 2. Explanation on Material Changes in the Business Type, Composition of Profit or Source of Profit of the Company The major business model of the Group is the integrated coal industry chain: i.e. coal production ÷ coal transportation (railway, port and shipping) ÷ conversion of coal (power generation and coal chemical), and there are business dealings among the segments. In the first half of 2026, the percentages of profit before income tax (before elimination on consolidation) of coal, power, transportation and coal chemical segments of the Group were 61%, 13%, 21% and 5%, respectively (the first half of 2025: 67%, 14%, 20% and -1% (restated)). During the Reporting Period, there was no material change in the type of business, profit composition or source of profit of the Company. (II) Explanation on Significant Change of Profit Caused by Non-principal Business ½ Applicable ✓ Not applicable
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China Shenhua Energy Company Limited 24 Section IV Management Discussion and Analysis (Continued) (III) Analysis on Assets and Liabilities 1. Analysis on Changes in the Major Items in the Consolidated Statement of Financial Position As at 30 June 2026 As at 31 December 2025 (restated) Item Amount Percentage of total assets Amount Percentage of total assets Change of the amount Main reasons for changes RMB million % RMB million % % Construction in progress 52,319 5.6 48,730 5.3 7.4 Continued investment in coal chemical, power generation and coal projects under construction Right-of-use assets 41,352 4.4 39,787 4.4 3.9 Increase in the land use rights Interests in associates 83,198 8.9 71,633 7.9 16.1 Increase in the investment in associates, such as the Finance Company and Jinshen Energy and recognition of investment income from associates Financial assets at fair value through profit or loss 6,701 0.7 0 0.0 / The Company ’s purchase of structured deposit products Financial assets at fair value through other comprehensive income 1,063 0.1 2,010 0.2 (47.1) Decrease in notes receivable scheduled for discounting or endorsement Inventories 17,810 1.9 15,280 1.7 16.6 Increase in coal inventories Prepaid expenses and other current assets 22,603 2.4 28,240 3.1 (20.0) Decrease in deposits, security deposits, prepaid income tax, etc. Restricted bank deposits 18,197 2.0 20,077 2.2 (9.4) Decrease in the balance of the special account for the mine geological environment treatment and restoration fund
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2026 Interim Report 25 Section IV Management Discussion and Analysis (Continued) As at 30 June 2026 As at 31 December 2025 (restated) Item Amount Percentage of total assets Amount Percentage of total assets Change of the amount Main reasons for changes RMB million % RMB million % % Time deposits with original maturity over three months 65,722 7.1 70,449 7.7 (6.7) The decrease in time deposits Short-term borrowings 82,705 8.9 29,624 3.2 179.2 The increase in the loans for mergers and acquisitions Accounts and bills payables 53,484 5.8 60,091 6.6 (11.0) The decrease in payables for materials purchases and payables for construction; discharge of certain bills payables upon maturity Accrued expenses and other payables 83,953 9.0 57,044 6.3 47.2 Mainly represented the final dividend for 2025 payable by the Company as at the end of the Reporting Period Current portion of long-term liabilities 9,928 1.1 13,205 1.4 (24.8) Certain amounts included in the current portion of long-term liabilities were repaid upon maturity Contract liabilities 8,502 0.9 6,174 0.7 37.7 Increase in advance receipts from coal sales proceeds Long-term liabilities 28,188 3.0 30,862 3.4 (8.7) Long-term payables for mining rights for certain coal subsidiaries and branches of the Group Share capital 21,689 2.3 19,869 2.2 9.2 Change in the share capital of the Company resulting from the completion of the acquisition of assets by way of issuance of shares and payment in cash, and the raising of supporting funds
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China Shenhua Energy Company Limited 26 Section IV Management Discussion and Analysis (Continued) 2. Explanation on Offshore Assets As at 30 June 2026, the total offshore assets of the Group amounted to RMB27,316 million, representing 2.9% of total assets, which were mainly composed of the power generation assets in Indonesia and the equity interests in overseas enterprises held by the Group. 3. Restrictions on Main Assets as at the End of the Reporting Period None of the Group ’s main assets are subject to judicial seizure or freezing orders. As at 30 June 2026, the balance of the restricted assets of the Group was RMB19,941 million. Of these, the fund in the bank deposit of the Group subject to restrictions amounted to RMB18,197 million, mainly comprising the mine geological environment governance treatment and restoration fund of coal mines, loan deposits, restoration development deposits, the security deposits for bank acceptance bills and litigation freezing deposits; other restricted assets were RMB1,744 million, mainly consisting of fixed assets of RMB1,147 million acquired through finance leases and RMB597 million of bills receivable that had been endorsed and discounted but had not yet matured. (IV) Operation Results by Business Segment 1. Coal Segment (1) Production, operation and construction In the first half of 2026, the Group ’s coal segment continued to strengthen and rigorously implement its accountability for production safety, and further advanced the identification, investigation and rectification of risks and potential hazards, maintaining a generally stable situation in safe coal production. The Group also continuously optimised the organisation of coal mine production and made scientific and coordinated arrangements for the continuity of mining, excavation and overburden stripping operations, thereby ensuring stable and high production of self-produced coal. The Group ’s commercial coal production was 249.9 million tonnes (the first half of 2025: 259.2 million tonnes (restated)), representing a year-on-year decrease of 3.6%. The total tunnelling length of the Group ’s underground mines was 282,000 metres (the first half of 2025: 277,000 metres (restated)). Key coal mine construction projects progressed in an orderly manner. As at the end of the Reporting Period, a cumulative total of 5,541 metres of shaft lining had been completed for the eight shafts of Xinjie No. 1 Mine and No. 2 Mine (อɓʜɚʜ), representing 80% of the overall physical progress. Excavation of the northern main roadway of the Tarangaole Mine (෫್৷ਔᘤ ʜ) exceeded 50%. After the shaft construction at the Boligou Coal Mine (ᆨ ๖ᘤ) was completed, the shaft-bottom hub and main trunk roadways were under comprehensive construction and the shaft-bottom yard and chambers had achieved progress of more than 80%. The mine construction works and ground production system of the Hongshaquan No. 2 Open-pit Mine (ɚ ᚣ˂ᘤ) had been completed, and construction of ancillary facilities, including the machinery repair area, is currently being advanced as a priority.
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2026 Interim Report 27 Section IV Management Discussion and Analysis (Continued) The Group continued to advance the development of intelligent and green mines, and to consolidate the achievements of green mining area development, with a significant increase in the number of national-level green mines. As at the end of the Reporting Period, the Group had established 22 national- level green mines and 19 provincial-level green mines, which in aggregate accounted for 85.4% of the Group ’s 48 coal mines in operation. Adhering to innovation-driven development, the Group further enhanced the intelligent development of its mines. For underground mines, the Group continuously carried out the construction of unmanned and minimally-manned intelligent coal mining working faces, and promoted a standardised intelligent rapid excavation operational model; for open-pit mines, focusing on autonomous transportation, the Group continuously advanced the large-scale application of unmanned mining trucks in coordination with the development of intelligent dispatch systems; and for the coal washing and loading processes, the application of intelligent unmanned loading systems was promoted. (2) Sales of coal The coal sold by the Group is primarily produced from its self-owned coal mines, including self-produced thermal coal and self-produced coking coal. In order to fulfil the needs of customers and adequately make use of railway transportation, the Group also purchases the coal from third parties in the surrounding area of the self-owned mines and along railway lines for blending into various types and grades of coal products, which are then centrally sold to external customers, including externally purchased thermal coal and externally purchased coking coal. The Group implemented specialised division management. In particular, production enterprises are responsible for production of coal, transportation enterprises of the Company are mainly responsible for transportation of coal, and sales subsidiaries of the Company are mainly responsible for sales of coal. The Group ’s coal products are principally supplied to the domestic power, chemical, metallurgical and other industries, accounting for 68%, 13%, 6% and 13%, respectively. In the first half of 2026, the Group proactively responded to changes in supply and demand in the coal market by establishing a full-chain collaborative support system, expanding the deployment of coal transportation channels, revitalizing surplus production capacity in regions such as Xinjiang, and advancing the seaborne transportation business for Xinjiang coal and eastern Inner Mongolia coal to further develop and strengthen the purchase and sale of Mongolian coking coal, thereby ensuring a stable supply of self-produced coal and increasing the volume and revenue of purchased coal. The coal sales volume of the Group reached 300.2 million tonnes (the first half of 2025: 294.9 million tonnes (restated)), representing a year-on-year increase of 1.8%, among which, the sales volume of purchased coal was 55.9 million tonnes (the first half of 2025: 42.2 million tonnes (restated)), representing a year-on-year increase of 32.5%. The sales volume for the top five domestic coal customers was 123.3 million tonnes, accounting for 41.3% of the domestic sales volume. In particular, the coal sold to China Energy Group, the largest customer, was 89.5 million tonnes, representing 30.0% of the domestic sales volume. The top five domestic coal customers primarily consist of the power companies. In the first half of 2026, the average coal sales price of the Group was RMB441/ tonne (exclusive of tax, same below), representing an increase of 4.5% compared to RMB422/tonne in the first half of 2025 (restated).
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China Shenhua Energy Company Limited 28 Section IV Management Discussion and Analysis (Continued) The coal sales of the Group are set out below: Ǻ By types of sources of coal and pricing mechanism The first half of 2026 The first half of 2025 (restated) Change Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Price (exclusive of tax) Million tonnes % RMB/ tonne Million tonnes % RMB/ tonne % % I. Self-produced thermal coal 239.2 79.7 397 247.8 84.0 397 (3.5) (0.0) 1. Medium- and long-term thermal coal 206.9 68.9 366 205.3 69.6 361 0.8 1.4 2. Others 32.3 10.8 595 42.5 14.4 570 (24.0) 4.4 II. Self-produced coking coal 5.1 1.7 739 4.9 1.7 621 4.1 19.0 1. Clean coal 2.1 0.7 1,104 1.9 0.7 895 10.5 23.4 2. Raw coal 3.0 1.0 478 3.0 1.0 444 0.0 7.7 III. Purchased coal 55.9 18.6 600 42.2 14.3 550 32.5 9.1 Total sales volume/ average price (exclusive of tax) 300.2 100.0 441 294.9 100.0 422 1.8 4.5
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2026 Interim Report 29 Section IV Management Discussion and Analysis (Continued) ǻ By internal and external customers The first half of 2026 The first half of 2025 (restated) Change Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Price (exclusive of tax) Million tonnes % RMB/ tonne Million tonnes % RMB/ tonne % % 1. Sales to external customers 245.1 81.6 447 245.8 83.3 424 (0.3) 5.4 2. Sales to internal power segment 48.9 16.3 423 42.1 14.3 421 16.2 0.5 3. Sales to internal coal chemical segment 6.2 2.1 340 7.0 2.4 358 (11.4) (5.0) Total sales volume/ average price (exclusive of tax) 300.2 100.0 441 294.9 100.0 422 1.8 4.5 Ǽ By sales regions The first half of 2026 The first half of 2025 (restated) Change Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Percentage to total sales volume Price (exclusive of tax) Sales volume Price (exclusive of tax) Million tonnes % RMB/ tonne Million tonnes % RMB/ tonne % % 1. Domestic sales 298.6 99.5 440 292.7 99.3 421 2.0 4.5 Of which: im ported coal 8.4 2.8 578 2.9 1.0 592 189.7 (2.4) 2. Export and overseas sales 1.6 0.5 496 2.2 0.7 608 (27.3) (18.4) Total sales volume/ average price (exclusive of tax) 300.2 100.0 441 294.9 100.0 422 1.8 4.5
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China Shenhua Energy Company Limited 30 Section IV Management Discussion and Analysis (Continued) (3) Coal resources On 30 June 2026, under the PRC standard, the Group had coal reserves amounting to 101.08 billion tonnes, representing an increase of 59.67 billion tonnes as compared to the end of 2025, and recoverable coal reserves amounting to 35.77 billion tonnes, representing an increase of 18.46 billion tonnes as compared to the end of 2025. The Group ’s marketable coal reserves amounted to 22.59 billion tonnes under the JORC standard, representing an increase of 11.46 billion tonnes as compared to the end of 2025. In the first half of 2026, the Company completed the acquisition of equity interests in 12 target companies held by its controlling shareholder, China Energy, and its wholly-owned subsidiary, Western Energy (the “Transaction ”), with 12 additional mining areas which specifically include: Yushen Mines in Shaanxi, Hequ-Baode – Piantouguan Mines in Shanxi, Wuda Mines, Haibowan Mines, Pingzhuang Mines and Hesigewula Mines in the Inner Mongolia Autonomous Region, Baoqing Mines in Heilongjiang, and Turpan-Hami Mines, Yili-Nilek Mines, Zhundong Mines, Southern Zhunge ’er Mines and Wudong Mines in the Xinjiang Uygur Autonomous Region. Meanwhile, the Group implemented categorisation, optimisation and integration for the existing nine mining areas in light of the needs for coordinated management of geographical locations, mining rights and reserves, whereby these mining areas were consolidated into six mining areas: the original Baorixile Mines, Dayan Mines and East Yimin River Mines were integrated to establish Yanbao Mines; the original Baotou Mines were incorporated into Shendong Mines, and Baotou Mines ceased to be separately designated as a mining area; Baode Coal Mine of the original Shendong Mines was incorporated into the newly established Hequ-Baode–Piantouguan Mines; the original Xinjie Taigemiao Mining Area was renamed as Xinjie Mines; and the original Shendong Mines, Zhunge ’er Mines, Shengli Mines and Tarangaole Mines retained their existing names. Concurrently, Sandaogou Coal Mine and Chahasu Coal Mine newly added pursuant to the Transaction were incorporated into Shendong Mines, Boligou Coal Mine and Heidaigou Mine Field were incorporated into Zhunge ’er Mines, and Baiyinhua No. 1 Open-pit Mine was incorporated into Shengli Mines; accordingly, the resources and reserves of Shendong Mines, Zhunge ’er Mines and Shengli Mines increased correspondingly as compared with the end of 2025. The above classification adjustments to the original mining areas do not affect the aggregate amount of the Group ’s original coal resources and reserves or the related statistical methodology; the increase in the Group ’s coal resources and reserves as compared with the end of 2025 was mainly attributable to the Transaction as well as the impact of mining, exploration and revaluation during the Reporting Period.
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2026 Interim Report 31 Section IV Management Discussion and Analysis (Continued) In the first half of 2026, the Group ’s coal exploration expenses (which were incurred before the conclusion of feasibility study and represented the expenses related to exploration and evaluation of coal resources) amounted to RMB0.05 billion (first half of 2025: RMB0.54 billion), which mainly consisted of the exploration expenses of Xinjie Mines; the Group ’s relevant capital expenditure of coal mine development and mining amounted to RMB3.21 billion (first half of 2025: RMB1.49 billion), which mainly consisted of construction works of various mines, acquisition of land use rights and other expenditures. Unit: 100 million tonnes No. Mines Coal reserve (under the PRC standard) Recoverable reserve (under the PRC standard) Proved reserve (under the PRC standard) Trusted reserve (under the PRC standard) Marketable coal reserve (under the JORC standard) 1 Shendong Mines 172.9 98.6 20.5 38.3 69.9 2 Zhunge ’er Mines 50.8 30.9 9.9 9.8 25.2 3 Shengli Mines 29.0 15.3 5.6 6.1 4.9 4 Yanbao Mines 75.4 17.2 4.7 9.4 7.7 5 Xinjie Mines 145.0 14.0 6.2 4.5 9.4 6 Tarangaole Mines 20.5 14.2 5.0 3.0 6.5 7 Yushen Mines 36.4 9.9 3.3 5.1 4.4 8 Hequ-Baode – Piantouguan Mines 35.4 11.3 6.6 3.4 6.0 9 Wuda Mines 1.6 1.1 0.5 0.2 0.4 10 Haibowan Mines 8.6 3.3 0.9 1.4 1.2 11 Pingzhuang Mines 2.8 1.4 1.1 0.1 1.3 12 Hesigewula Mines 9.7 5.1 3.5 0.0 5.1 13 Baoqing Mines 8.3 7.4 1.5 1.9 4.6 14 Turpan-Hami Mines 87.0 23.4 7.5 5.4 19.0 15 Yili-Nilek Mines 21.8 0.0 0.0 0.0 0.0 16 Zhundong Mines 283.4 95.0 18.6 33.6 57.5 17 Southern Zhunge ’er Mines 10.2 2.0 1.3 0.5 0.9 18 Wudong Mines 12.0 7.6 3.2 2.9 1.9 Total 1,010.8 357.7 99.9 125.6 225.9 Note: Trusted reserve and proved reserve are calculated based on the Classifications for Mineral Resources and Mineral Reserves (GB/T 17766-2020).
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China Shenhua Energy Company Limited 32 Section IV Management Discussion and Analysis (Continued) Characteristics of the Group ’s thermal coal mines in operation by quality are as follows: No. Mines Major types of coal Calorific value of major commercial coal product Sulphur content Ash content kcal/kg % % 1 Shendong Mines Long flame coal, non-caking coal 5,100-6,200 0.1-0.2 4.3-15.8 2 Zhunge ’er Mines Long flame coal, non-caking coal 3,400-5,200 0.3-0.6 18.0-40.0 3 Shengli Mines Lignite 2,900-3,300 1.0-2.0 14.0-30.0 4 Yanbao Mines Lignite 2,490-3,640 0.2-1.1 4.8-56.4 5 Yushen Mines Long flame coal 5,900-6,200 0.3-0.6 <12.0 6 Hequ-Baode – Piantouguan Mines Long flame coal 3,200-4,300 0.5-0.8 31.9-38.3 7 Pingzhuang Mines Lignite 3,300-3,500 1.2-1.5 26.0-30.0 8 Hesigewula Mines Lignite 3,100-3,300 1.2-1.5 26.0-30.0 9 Baoqing Mines Lignite 1,800-2,200 0.1-0.3 25.1-30.2 10 Turpan-Hami Mines Lignite 3,200-4,100 0.4-0.8 8.2-33.5 11 Zhundong Mines Non-caking coal 3,990-7,340 0.03-1.9 3.3-40.1 12 Southern Zhunge ’er Mines Non-caking coal 5,560-6,740 0.1-0.9 4.1-31.6 13 Wudong Mines Weakly Caking Coal, Long flame coal 5,390-7,300 0.7-3.8 8.2-33.8
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2026 Interim Report 33 Section IV Management Discussion and Analysis (Continued) Characteristics of the Group ’s coking coal mines in operation by quality are as follows: No. Mines Major types of coal Volatile Dry Ash Free Bond index Bond index Sulphur content Ash content Vdaf G Y % % 1 Haibowan Mines Fat coal, coking coal, 1/3 coking coal 26-30 77-97 15-24 0.7-1.6 10.6-12.6 2 Wuda Mines Fat coal, coking coal, 1/3 coking coal 27 96 24 1.8 12.2 (4) Operating results Ǻ The operating results of the coal segment of the Group before elimination on consolidation First half of 2026 First half of 2025 Change Main reasons for changes (restated) % Revenue RMB million 135,570 127,814 6.1 Increase in sales volume and average sales price of coal Cost of sales RMB million (100,677) (92,513) 8.8 Increase in sales volume and purchase price of purchased coal Gross profit margin % 25.7 27.6 Decreased by 1.9 percentage points Profit before tax RMB million 28,918 29,357 (1.5)
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China Shenhua Energy Company Limited 34 Section IV Management Discussion and Analysis (Continued) ǻ The cost of sales of the coal segment of the Group before elimination on consolidation First half of 2026 First half of 2025 (restated) Change in costs Cost Percentage Cost Percentage RMB million % RMB million % % Cost of purchased coal 22,367 22.2 16,986 18.4 31.7 Raw materials, fuel and power 4,632 4.6 5,493 5.9 (15.7) Personnel expenses 10,794 10.7 11,966 12.9 (9.8) Repair and maintenance 1,462 1.5 1,657 1.8 (11.8) Depreciation and amortisation 5,203 5.2 5,066 5.5 2.7 Transportation fees 26,889 26.7 24,560 26.5 9.5 Taxes and surcharges 10,959 10.9 9,976 10.8 9.9 Other costs 18,371 18.2 16,809 18.2 9.3 Total cost of sales 100,677 100.0 92,513 100.0 8.8 Ǽ The gross profit from the sales of coal products of the Group by regions before elimination on consolidation First half of 2026 First half of 2025 (restated) Sales revenue Sales cost Gross profit Gross profit margin Sales revenue Sales cost Gross profit Gross profit margin RMB million RMB million RMB million % RMB million RMB million RMB million % Domestic 131,506 86,667 44,839 34.1 123,171 78,748 44,423 36.1 Export and overseas 805 796 9 1.1 1,320 1,305 15 1.1 Total 132,311 87,463 44,848 33.9 124,491 80,053 44,438 35.7
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2026 Interim Report 35 Section IV Management Discussion and Analysis (Continued) ǽ The gross profit from sales of coal products of the Group by types of coal source before elimination on consolidation First half of 2026 First half of 2025 (restated) Types of coal source Sales revenue Sales cost Gross profit Gross profit margin Sales revenue Sales cost Gross profit Gross profit margin RMB million RMB million RMB million % RMB million RMB million RMB million % Self-produced coal 98,776 55,637 43,139 43.7 101,253 57,230 44,023 43.5 Purchased coal 33,535 31,826 1,709 5.1 23,238 22,823 415 1.8 Total 132,311 87,463 44,848 33.9 124,491 80,053 44,438 35.7 The sales cost of coal includes the purchase cost of coal, as well as the transportation and port charges, etc., incurred to realise the sales. Ǿ Unit production cost of self-produced coal Unit: RMB/tonne First half of 2026 First half of 2025 (restated) Changes Main reasons for changes % Unit production cost of self- produced coal 147.4 151.4 (2.6) Raw materials, fuel and power 18.5 21.5 (14.0) Decrease in expenses for power, materials and others Personnel expenses 43.2 46.2 (6.5) Repair and maintenance 5.8 6.4 (9.4) Affected by the overhaul plan Depreciation and amortisation 21.4 20.3 5.4 Other costs 58.5 57.0 2.6 Other costs consist of the following three components: (1) expenses directly related to production, including expenses for coal washing, selecting and processing, and mining engineering expenses, etc., accounting for 76%; (2) auxiliary production expenses, accounting for 14%; and (3) land requisition and surface subsidence compensation, environmental protection expenses, tax, etc., accounting for 10%.
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China Shenhua Energy Company Limited 36 Section IV Management Discussion and Analysis (Continued) 2. Power Segment (1) Production and operation In the first half of 2026, the Group strengthened the operational management of generating units, strictly controlled unplanned outage and fully leveraged the role of coal power in supporting peak power generation, achieving sustainable and stable supply of electricity and heat. The Group adhered to the operation strategy of coordinating sales volume and selling price by closely monitoring supply-demand relationship in the power market and price trends of electricity to seize the favourable window period in the market in maximizing efficiency of power generation. The Group achieved a power generation of 136.64 billion kWh in the first half of the year (first half of 2025: 129.42 billion kWh (restated)), representing a year-on-year increase of 5.6%; the Group achieved a total power output dispatch of 128.08 billion kWh (first half of 2025: 121.37 billion kWh (restated)), representing a year-on-year increase of 5.5%, with the power in market-based transactions of 125.9 billion kWh that accounts for 98.3% of the total power output dispatch. The Group deepened transformation and upgrading of coal-fired power, and fully pushed forward the efforts of increasing optimisation through incremental development and increasing efficiency from existing resources. The Group has been actively ensuring effective results of capacity tariffs policy. In the first half of the year, the Group generated revenue from capacity tariffs of RMB5.20 billion (inclusive of tax), representing an average acquisition rate of 98.6% for capacity tariffs. The Group has been exploring the possibility of enhancing flexibility and adaptability of existing coal-fired units, so that they can play an active role in the market of ancillary services in the areas of peak shaving and frequency modulation. In the first half of the year, the Group realised revenue from ancillary services of RMB360 million (inclusive of tax). The Group accelerated the low-carbon transformation of coal-fired power mainly by the “linkage of the three power industry reforms (ɧҷᑌਗ) ”. The standard coal consumption for power supply of the Group ’s domestic coal-fired generating units (excluding coal gangue) in the first half of the year was 297 g/kWh. The Group made great efforts in the development of new energy business and realised two-way empowerment between industries and capital. The Group continued to promote development and construction of wind power and photovoltaic power projects. At the end of the Reporting Period, the installed capacity of the Group ’s new energy power generating units in external commercial operations increased to 2,712 MW. The Group actively played its role as a platform for industry funds. Beijing Guoneng New Energy Industry Investment Fund and Beijing Guoneng Green and Low Carbon Development Investment Fund, which were established with the participation of the Company, have been operating smoothly, with the cumulative recovered principal and gains of RMB804 million and RMB546 million, respectively.
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2026 Interim Report 37 Section IV Management Discussion and Analysis (Continued) (2) Power output dispatch and price of electricity sold Gross power generation Total power output dispatch Price of electricity sold (billion kWh) (billion kWh) (RMB/MWh) Power type/ operation location First half of 2026 First half of 2025 (restated) Changes First half of 2026 First half of 2025 (restated) Changes First half of 2026 First half of 2025 (restated) Changes % % % (I) Coal-fired power 132.35 125.02 5.9 123.87 117.06 5.8 367 368 (0.3) Guangdong 27.11 18.36 47.7 25.62 17.32 47.9 381 348 9.5 Shaanxi 18.97 20.74 (8.5) 17.50 19.11 (8.4) 308 317 (2.8) Fujian 12.37 10.47 18.1 11.79 10.01 17.8 374 390 (4.1) Hebei 12.30 12.17 1.1 11.60 11.44 1.4 393 402 (2.2) Inner Mongolia 10.58 11.40 (7.2) 9.66 10.47 (7.7) 326 343 (5.0) Shanxi 7.94 8.58 (7.5) 7.36 7.97 (7.7) 320 338 (5.3) Jiangxi 7.90 5.49 43.9 7.47 5.21 43.4 391 408 (4.2) Sichuan 7.68 6.86 12.0 7.27 6.50 11.8 380 416 (8.7) Xinjiang 5.53 5.75 (3.8) 5.14 5.35 (3.9) 265 274 (3.3) Guangxi 4.85 3.26 48.8 4.57 3.10 47.4 420 377 11.4 Hunan 4.54 6.06 (25.1) 4.33 5.81 (25.5) 452 472 (4.2) Shandong 3.13 3.69 (15.2) 2.89 3.46 (16.5) 442 406 8.9 Chongqing 2.96 5.44 (45.6) 2.82 5.19 (45.7) 446 413 8.0 Heilongjiang 1.99 1.92 3.6 1.83 1.77 3.4 379 384 (1.3) Tianjin 1.96 2.10 (6.7) 1.73 1.87 (7.5) 406 404 0.5 Henan 1.84 2.02 (8.9) 1.69 1.87 (9.6) 400 403 (0.7) Indonesia (overseas) 0.70 0.71 (1.4) 0.60 0.61 (1.6) 510 483 5.6 (II) Gas-fired power 2.27 2.93 (22.5) 2.22 2.87 (22.6) 650 587 10.7 Beijing 1.52 1.89 (19.6) 1.49 1.85 (19.5) 575 557 3.2 Guangdong 0.74 1.04 (28.8) 0.72 1.02 (29.4) 807 641 25.9 Inner Mongolia 0.01 0.00 / 0.01 0.00 / 418 442 (5.4) (III) Wind power 0.97 0.55 76.4 0.95 0.54 75.9 231 222 4.1 Xinjiang 0.75 0.55 36.4 0.73 0.54 35.2 225 222 1.4 Shaanxi 0.18 / / 0.18 / / 283 / / Inner Mongolia 0.04 / / 0.04 / / 93 / / (IV) Photovoltaic power 0.88 0.75 17.3 0.87 0.74 17.6 279 288 (3.1) Xinjiang 0.19 0.15 26.7 0.19 0.15 26.7 208 189 10.1 Shaanxi 0.14 0.10 40.0 0.14 0.09 55.6 215 279 (22.9) Fujian 0.13 0.13 0.0 0.13 0.13 0.0 381 386 (1.3) Guangdong 0.12 0.10 20.0 0.12 0.10 20.0 444 429 3.5 Inner Mongolia 0.12 0.13 (7.7) 0.12 0.13 (7.7) 146 149 (2.0) Jiangxi 0.09 0.08 12.5 0.08 0.08 0.0 315 344 (8.4) Shandong 0.05 0.04 25.0 0.05 0.04 25.0 289 335 (13.7) Others (Tianjin, Hebei, Henan, Heilongjiang, Sichuan) 0.04 0.02 100.0 0.04 0.02 100.0 304 324 (6.2) (V) Hydropower 0.17 0.17 0.0 0.17 0.16 6.3 263 269 (2.2) Sichuan 0.17 0.17 0.0 0.17 0.16 6.3 263 269 (2.2) Total 136.64 129.42 5.6 128.08 121.37 5.5 370 372 (0.5)
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China Shenhua Energy Company Limited 38 Section IV Management Discussion and Analysis (Continued) (3) Installed capacity At the end of the Reporting Period, the total installed capacity of the Group ’s external commercial operation of power generating units was 70,636 MW, of which the total installed capacity of coal-fired power generating units was 65,638 MW, accounting for 92.9% of the total installed capacity of the Group. During the Reporting Period, the installed capacity of the Group ’s power generating units increased by 17,960 MW. In particular, the Company completed the acquisition of equity interests in relevant assets held by its controlling shareholder, China Energy, and its wholly-owned subsidiary, Western Energy. The installed capacity of power generating units at the end of the Reporting Period increased by 15,640 MW accordingly. Commencement of operation of a number of new units brought about an increase of 2,320 MW in installed capacity of power generating units. Unit: MW Power type Total installed capacity as at 31 December 2025 Installed capacity increased during the Reporting Period Total installed capacity as at 30 June 2026 Coal-fired power 49,384 16,254 65,638 Gas-fired power 2,194 14 2,208 Wind power – 1,374 1,374 Photovoltaic power 1,020 318 1,338 Hydropower 78 – 78 Total 52,676 17,960 70,636
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2026 Interim Report 39 Section IV Management Discussion and Analysis (Continued) (4) Utilisation rate of power generation equipment In the first half of 2026, the average utilisation hours of the Group ’s coal-fired generating units were 2,058 hours, representing a decrease of 96 hours as compared with 2,154 hours (restated) in the same period of last year, and 60 hours higher than the average utilisation hours of coal-fired power generation equipment of 6,000 kW and above, which were 1,998 hours 1 in the PRC. Power type Average utilisation hours (Hours) Power consumption ratio of power plant (%) First half of 2026 First half of 2025 Changes First half of 2026 First half of 2025 Changes (restated) % (restated) Coal-fired power 2,058 2,154 (4.5) 5.32 5.11 Increased by 0.21 percentage point Gas-fired power 1,030 1,331 (22.6) 1.69 1.77 Decreased by 0.08 percentage point Wind power 711 540 31.7 0.82 0.58 Increased by 0.24 percentage point Photovoltaic power 666 687 (3.1) 0.68 0.59 Increased by 0.09 percentage point Hydropower 2,225 2,049 8.6 0.40 0.44 Decreased by 0.04 percentage point Weighted average 1,973 2,073 (4.8) 5.18 5.14 Increased by 0.04 percentage point 1 Source: China Electricity Council
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China Shenhua Energy Company Limited 40 Section IV Management Discussion and Analysis (Continued) (5) Capital expenditure In the first half of 2026, the total capital expenditure of the power generation segment was RMB11,654 million, mainly for the following projects: No. Name of project Contribution amount for the Reporting Period Percentage of accumulated investment in project to the total budget as at the end of the Reporting Period Phase of projects at the end of the Reporting Period RMB million % 1 Guangdong Qingyuan Power Plant Phase II Expansion Project (2 ×1,000MW) 797 91 Put into operation 2 Hebei Cangdong Power Plant Phase III Expansion Project (2 ×660MW) 1,538 73 Partially put into operation 3 Hebei Dingzhou Power Plant Phase III Expansion and Thermal Power Project (2 ×660MW) 2,599 67 Partially put into operation 4 Xinjiang Bortala Thermal Power Project (2 ×660MW) 2,326 63 Under construction 5 Dagang Power Station Equal-capacity Replacement Project (2 ×660MW) 1,106 55 Under construction 6 Chongqing Wanzhou Power Plant Phase II Expansion Project (2 ×1,000MW) 72 23 Under construction 7 Yushen Qingshui Thermal Power Project (2 ×660MW) 288 11 Under construction 8 Hami Dananhu Power Plant Phase II Expansion Project (2 ×660MW) 62 2 Under construction (6) Operation results Ǻ The operation results of the power generation segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 Change Main reasons for changes (restated) % Revenue RMB million 52,506 50,231 4.5 Year-on-year increase in power output dispatch Cost of sales RMB million (45,129) (42,825) 5.4 Year-on-year increase in power output dispatch Gross profit margin % 14.0 14.7 Decreased by 0.7 percentage point Profit before income tax RMB million 6,101 6,354 (4.0)
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2026 Interim Report 41 Section IV Management Discussion and Analysis (Continued) ǻ Revenue from and cost of the power sales of the Group before elimination on consolidation Unit: RMB million Revenue from power sales (including heat sales) Cost of power sales (including heat sales) Power type The first half of 2026 The first half of 2025 (restated) Change The first half of 2026 Percentage of total cost of electricity sold in the first half of 2026 The first half of 2025 (restated) Percentage of total cost of electricity sold in the first half of 2025 (restated) Change in the first half of 2026 compared to the first half of 2025 % % % % Coal-fired power 47,409 44,989 5.4 40,907 95.9 38,453 95.1 6.4 Gas-fired power 1,559 1,821 (14.4) 1,444 3.4 1,768 4.4 (18.3) Wind power 218 119 83.2 141 0.3 92 0.2 53.3 Photovoltaic power 243 215 13.0 138 0.3 93 0.2 48.4 Hydropower 45 44 2.3 43 0.1 48 0.1 (10.4) Total 49,474 47,188 4.8 42,673 100.0 40,454 100.0 5.5 The Group ’s cost of power sales (including heat sales) is mainly comprised of raw materials, fuel and power, personnel expenses, repair and maintenance, depreciation and amortisation and other costs. The unit cost of power sales of the Group in the first half of 2026 was RMB333.2/ MWh (the first half of 2025: RMB333.3/MWh, restated). Ǽ Cost of power sales of coal-fired power plant of the Group before elimination on consolidation (including cost of heat sales) The first half of 2026 The first half of 2025 (restated) Change in cost Costs Percentage Costs Percentage RMB million % RMB million % % Raw material, fuel and power 29,547 72.2 26,837 69.8 10.1 Personnel expenses 2,811 6.9 3,747 9.7 (25.0) Repair and maintenance 612 1.5 921 2.4 (33.6) Depreciation and amortisation 5,158 12.6 4,334 11.3 19.0 Others 2,779 6.8 2,614 6.8 6.3 Total cost of power sales of coal-fired power plant 40,907 100.0 38,453 100.0 6.4
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China Shenhua Energy Company Limited 42 Section IV Management Discussion and Analysis (Continued) In the first half of 2026, the cost of power sales of the Group ’s coal-fired power plant increased by 6.4% year-on-year. Among them, the year-on-year increase of 10.1% in the costs of raw materials, fuel and power was mainly due to an increase in power output dispatch and the increase in coal purchase price led to an increase in the cost of coal purchase; the year-on-year increase of 19.0% in depreciation and amortisation was mainly due to the commencement of operation of multiple new generating units of the Group and the increase in long-term assets such as fixed assets; the year-on-year increase of 6.3% in other costs was mainly due to an increase in electricity trading service fees. In the first half of 2026, the power generation segment consumed a total of 47.9 million tonnes of coal sold internally by the Group (the first half of 2025: 45.9 million tonnes (restated)), representing a year-on-year increase of 4.4%, accounting for 76.5% of the total coal consumption of 62.6 million tonnes in the power generation segment. 3. Railway Segment (1) Production and operations In the first half of 2026, the railway segment of the Group continued to optimise its transportation organisation system and the layout of coal transportation, achieving increases in both transportation volume and hauling distance, as well as growth in both quality and efficiency. It continuously improved the multimodal transport logistics system, diversified freight categories, and persistently enhanced the value-creation capability of integrated logistics. By implementing a market-oriented and differentiated freight pricing mechanism, it precisely enhanced its market operational competitiveness and solid capability in ensuring energy supply. In the first half of 2026, the transportation turnover of self-owned railway of the Group reached 163.2 billion tonnes km (the first half of 2025: 152.8 billion tonnes km), representing a year-on-year growth of 6.8%; the transportation volume of non-coal goods such as metal ores and chemicals was approximately 12.6 million tonnes (the first half of 2025: 13.1 million tonnes), representing a year-on-year decrease of 3.8%, of which the reverse direction transportation volume of non-coal goods reached 9.2 million tonnes. Adhering to empowering the high-quality development of railways through technology, the Group continuously advanced technological innovation, the transformation of achievements, and the demonstration application of equipment. Actively practising the concept of green and low-carbon development, the Group successfully applied the domestically pioneered flexible traction power supply technology for heavy-haul railways. Furthermore, the Group accelerated the deployment and popularisation of new energy and intelligent railway equipment. Various types of hydrogen-powered operational locomotives achieved a cumulative safe operating mileage of over 8,300 km, and the trial operation mileage of dual-source high-power heavy-haul locomotives exceeded 20,000 km.
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2026 Interim Report 43 Section IV Management Discussion and Analysis (Continued) (2) Operation results Ǻ The operation results of the railway segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 Change Main reasons for changes % Revenue RMB million 22,733 21,434 6.1 Increase in transportation turnover of self-owned railway Cost of sales RMB million (13,672) (12,748) 7.2 Increase in transportation turnover of self-owned railway Gross profit margin % 39.9 40.5 Decreased by 0.6 percentage point Profit before income tax RMB million 7,870 7,260 8.4 ǻ The cost of sales of the railway segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 Cost changes Costs Percentage Costs Percentage RMB million % RMB million % % Prime business cost 12,962 94.8 12,218 95.8 6.1 Raw material, fuel and power 1,839 13.5 1,716 13.5 7.2 Personnel expenses 4,133 30.2 4,286 33.6 (3.6) Repair and maintenance 2,106 15.4 2,300 18.0 (8.4) Depreciation and amortisation 2,346 17.2 2,410 18.9 (2.7) Others 2,538 18.5 1,506 11.8 68.5 Cost of other operations 533 3.9 353 2.8 51.0 Tax and surcharge 177 1.3 177 1.4 0.0 Total cost of sales 13,672 100.0 12,748 100.0 7.2 In the first half of 2026, the unit transportation cost in the railway segment was RMB0.079/tonne km (the first half of 2025: RMB0.080/ tonne km), representing a year-on-year decrease of 1.3%.
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China Shenhua Energy Company Limited 44 Section IV Management Discussion and Analysis (Continued) 4. Port Segment (1) Production and operations In the first half of 2026, the port segment of the Group continued to optimise its production and operation model, comprehensively unleash the capacity potential of the port areas, and steadily consolidate its core advantages in ensuring regional energy supply. The coal loading volume of Huanghua Port reached 112.1 million tonnes (the first half of 2025: 107.6 million tonnes), representing a year-on-year increase of 4.2%; Tianjin Coal Dock achieved a coal loading volume of 22.4 million tonnes (the first half of 2025: 21.8 million tonnes), representing a year-on-year increase of 2.8%. Fully leveraging regional advantages, the operational level of the Group ’s ports continuously improved. Huanghua Port continued to consolidate its leading position, maintaining a market share of over 30% among northern coal ports. Tianjin Port established a dual efficiency-enhancement system comprising an “internal operation cycle and external collection and distribution cycle ”, breaking historical records for ship-loading volume per shift and per day on multiple occasions. Key port construction projects were steadily implemented. The Oil Terminal Project at Huanghua Port and the Zhuhai Gaolan Port Bulk Cargo Terminal Project successfully passed completion acceptance, and the construction of Huanghua Port (coal port area) Phase V Project progressed in an orderly manner.
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2026 Interim Report 45 Section IV Management Discussion and Analysis (Continued) (2) Operation results Ǻ The operation results of the port segment of the Group before eliminations on consolidation The first half of 2026 The first half of 2025 (restated) Change Main reasons for changes % Revenue RMB million 3,575 3,519 1.6 Cost of sales RMB million (1,732) (1,857) (6.7) Decrease in fees for waterway dredging, depreciation and amortisation and others Gross profit margin % 51.6 47.2 Increased by 4.4 percentage points Profit before income tax RMB million 1,589 1,378 15.3 ǻ The cost of sales of the port segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 (restated) Cost changes Costs Percentage Costs Percentage RMB million % RMB million % % Prime business cost 1,590 91.8 1,631 87.8 (2.5) Raw material, fuel and power 274 15.8 239 12.9 14.6 Personnel expenses 346 20.0 367 19.8 (5.7) Repair and maintenance 90 5.2 70 3.8 28.6 Depreciation and amortisation 355 20.5 411 22.1 (13.6) Others 525 30.3 544 29.2 (3.5) Cost of other operations 95 5.5 174 9.4 (45.4) Taxes and surcharges 47 2.7 52 2.8 (9.6) Total cost of sales 1,732 100.0 1,857 100.0 (6.7)
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China Shenhua Energy Company Limited 46 Section IV Management Discussion and Analysis (Continued) 5. Shipping Segment (1) Production and operations In the first half of 2026, the Group ’s shipping segment optimised the comprehensive shipping industry layout, innovated the internal and external collaborative operation model, expanded the self-owned and controllable shipping capacity, and consolidated the integrated collaborative transportation system. In the first half of the year, the shipping volume was 142.0 million tonnes (the first half of 2025: 128.5 million tonnes, restated), representing a year-on-year increase of 10.5%. The Group accelerated the establishment of an industrial layout characterised by “one main and three auxiliary ”, three major shipping regions, and N corridors. The Group consolidated the principal position of the coastal trunk shipping route for the North-to-South Coal Transportation, cultivated three auxiliary routes, namely inland waterway transportation along the Yangtze River and the Pearl River, and ocean-going transportation and coordinated the development of the three major shipping regions, namely coastal, inland waterway, and ocean-going regions. It continuously expanded multiple river-sea intermodal transportation channels and domestic and foreign trade logistics corridors and optimised the multi-level shipping network, thereby providing robust support for the integrated energy supply guarantee and the development of the comprehensive logistics business. (2) Operation results Ǻ The operation results of the shipping segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 (restated) Change Main reasons for changes % Revenue RMB million 5,274 3,963 33.1 Increase in shipment volume and turnover Cost of sales RMB million (4,681) (3,463) 35.2 Increase in shipment volume and turnover Gross profit margin % 11.2 12.6 Decreased by 1.4 percentage points Profit before income tax RMB million 429 283 51.6
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2026 Interim Report 47 Section IV Management Discussion and Analysis (Continued) ǻ The cost of sales of the shipping segment of the Group before elimination on consolidation The first half of 2026 The first half of 2025 (restated) Cost changes Costs Percentage Costs Percentage RMB million % RMB million % % Prime business cost 4,616 98.6 3,406 98.3 35.5 Raw material, fuel and power 470 10.0 455 13.1 3.3 Personnel expenses 34 0.7 60 1.7 (43.3) Repair and maintenance 9 0.2 23 0.7 (60.9) Depreciation and amortisation 221 4.7 220 6.4 0.5 Transportation charges 3,668 78.4 2,357 68.1 55.6 Others 214 4.6 291 8.3 (26.5) Cost of other operations 50 1.1 44 1.3 13.6 Tax and surcharges 15 0.3 13 0.4 15.4 Total cost of sales 4,681 100.0 3,463 100.0 35.2 In the first half of 2026, the unit transportation cost of the shipping segment was RMB0.034/tonne nautical mile (the first half of 2025: RMB0.027/tonne nautical mile, restated), representing a year-on-year increase of 25.9%, mainly due to increase in vessel leasing fees. 6. Coal Chemical Segment (1) Production and operations and construction The coal chemical segment of the Group possesses multiple industry-leading modern production facilities, such as coal-to-olefins, coal-to-liquids, coal-to-methanol and coal-to-ethylene glycol facilities, and is committed to the clean and highly efficient utilisation of coal and the research, development, and manufacturing of high value-added chemical products. Main products include polyolefins (with production capacity of approximately 1.88 million tonnes/ year), oil products (with production capacity of approximately 1.08 million tonnes/year), methanol, ethylene glycol, while the by-products include asphalt, industrial sulphur, mixed C5, industrial propane, mixed C4, refined methanol, mixed pentene, ammonium sulfate, etc.
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China Shenhua Energy Company Limited 48 Section IV Management Discussion and Analysis (Continued) In the first half of 2026, the coal chemical segment of the Group accelerated the extension of the industrial chain and value chain to the high end, actively expanded a diversified product layout, deepened the application of coal-based specialty fuels, advanced the product development of coal-based high-end polyolefins and carbon materials, and enhanced the level of clean and highly efficient conversion of coal. It continued to deepen the refined management and control of production and operations, consolidated the sound momentum of stable and high production, seized market development opportunities, strengthened the linkage and synergy between production and sales, and continuously enhanced its capacity to generate revenue and profitability. Dedicated efforts were focused on advancing major coal chemical projects by strictly adhering to technical, quality, safety, and environmental protection standards to ensure the projects proceed as scheduled. (2) Sales of coal chemical products During the Reporting Period, the sales of the Group ’s main coal chemical products were as follows: January to June 2026 January to June 2025 (restated) Change Product name Sales volume Price Sales volume Price Sales volume Price 10 thousand tonnes RMB/tonne 10 thousand tonnes RMB/tonne % % Polyethylene 50.1 8,114 49.1 7,851 2.0 3.3 Polypropylene 57.3 7,053 56.3 6,470 1.8 9.0 Diesel 27.7 6,327 8.5 7,005 225.9 (9.7) Naphtha 17.3 6,575 1.4 6,304 1,135.7 4.3 Liquefied gas 4.2 5,223 0.2 4,296 2,000.0 21.6 Methanol 36.2 2,108 35.0 1,909 3.4 10.4 Ethylene glycol 15.7 3,713 12.1 3,759 29.8 (1.2)
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2026 Interim Report 49 Section IV Management Discussion and Analysis (Continued) (3) Operation results Ǻ The operation results of the Group ’s coal chemical segment before elimination on consolidation January to June 2026 January to June 2025 (restated) Change Main reasons for changes % Revenue RMB million 14,724 11,132 32.3 Increase in sales volume of coal chemical products Cost of sales RMB million (11,558) (10,505) 10.0 Increase in sales volume of coal chemical products; increase in taxes and surcharges Gross profit margin % 21.5 5.6 Increased by 15.9 percentage points Profit before income tax RMB million 2,211 (336) / ǻ The cost of sales of the coal chemical segment of the Group before elimination on consolidation January to June 2026 January to June 2025 (restated) Cost changes Costs Percentage Costs Percentage RMB million % RMB million % % Prime business cost 9,822 85.0 9,761 92.9 0.6 Raw material, fuel and power 5,307 45.9 4,930 46.9 7.6 Personnel expenses 1,245 10.8 1,426 13.6 (12.7) Repair and maintenance 684 5.9 812 7.7 (15.8) Depreciation and amortisation 1,072 9.3 1,259 12.0 (14.9) Others 1,514 13.1 1,334 12.7 13.5 Cost of other operations 583 5.0 311 3.0 87.5 Tax and surcharges 1,153 10.0 433 4.1 166.3 Total cost of sales 11,558 100.0 10,505 100.0 10.0
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China Shenhua Energy Company Limited 50 Section IV Management Discussion and Analysis (Continued) In the first half of 2026, the coal chemical segment consumed 8.9 million tonnes of coal sold internally by the Group (the first half of 2025: 7.2 million tonnes, restated), representing a year-on-year increase of 23.6%, accounting for 87.3% of the coal chemical segment ’s total coal consumption of 10.2 million tonnes. Ǽ The gross profit from the sales of main coal chemical products of the Group before elimination on consolidation January to June 2026 January to June 2025 (restated) Category of products Sales revenue Sales cost Gross profit Gross profit margin Sales revenue Sales cost Gross profit Gross profit margin RMB million RMB million RMB million % RMB million RMB million RMB million % Polyolefins 8,105 5,510 2,595 32.0 7,497 5,968 1,529 20.4 Oil products 3,109 2,123 986 31.7 688 1,444 (756) (109.9) Methanol 764 627 137 17.9 669 613 56 8.4 Ethylene glycol 582 432 150 25.8 456 499 (43) (9.4) Note: Polyolefins include polyethylene and polypropylene, and oil products include diesel, naphtha and liquefied gas.
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2026 Interim Report 51 Section IV Management Discussion and Analysis (Continued) (V) Operations by Region Unit: RMB million The first half of 2026 The first half of 2025 (restated) Change % Revenue from external transactions in domestic markets 185,804 171,049 8.6 Revenue from external transactions from overseas markets 3,534 4,374 (19.2) Total 189,338 175,423 7.9 Note: The revenue from external transactions is divided by the location of customers receiving services and purchasing products. The Group is mainly engaged in the production and sales of coal and power, railway, port and shipping transportation, as well as coal chemical businesses in the PRC. In the first half of 2026, the revenue from external transactions in domestic markets accounted for 98.1% of the Group ’s total revenue; the revenue from external transactions in overseas markets recorded a year-on-year decrease of 19.2%, mainly attributable to a year-on-year decrease in overseas coal sales income. In the first half of 2026, the Group ’s power generation assets in Indonesia maintained safe and stable operations. Achieving a total power generation of 8.19 billion kWh, they provided strong support for the stable and reliable operation of the regional power system in Indonesia. The Pennsylvania shale gas project in the United States is performing well, with a gas production of 50 million cubic meters (attributable gas volume) in the first half of the year.
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China Shenhua Energy Company Limited 52 Section IV Management Discussion and Analysis (Continued) (VI) Analysis on Investments 1. Overall Analysis of External Equity Investments During the Reporting Period, the Company ’s investment in subsidiaries increased by RMB110,802 million, primarily due to the Company ’s acquisition of the equity interests in the other 11 target companies, excluding Jinshen Energy, held by China Energy and its wholly-owned subsidiary Western Energy, as well as the capital injections into relevant subsidiaries in industries such as the railway and power generation to advance project construction. The Group ’s investment in associates increased by RMB10,518 million, primarily due to the Company ’s capital injection into Finance Company, and the acquisition of the equity interests in Jinshen Energy held by China Energy. 2. Material Investment in Equity Interest During the Reporting Period, the Company completed the acquisition of the equity interests in the 12 target companies held in aggregate by the controlling shareholder, China Energy, and its wholly-owned subsidiary Western Energy, by way of issuance of A Shares and payment in cash, and raised supporting funds. Of these, 11 target companies including Guoyuan Power were included in the scope of consolidation of the Company ’s financial statements, realizing an aggregate net profit attributable to the equity holders of the parent company of RMB6,881 million (before elimination on consolidation) in the first half of 2026; Jinshen Energy is an investee of the Group, for which an investment income of RMB57 million was recognized by the Company in the first half of 2026. Details of the relevant equity investment are set out as follows: Name of investee Principal activities Whether the target is principally engaged in the investment business Investment method Merger consideration Shareholding Whether consolidated Financial statement line item of the parent company Sources of funds Investment income/ Net profit attributable to the equity holders of the parent company during the Reporting Period RMB ten thousand % RMB million Jinshen Energy Coal mining, processing and sales No Acquisition 378,072.23 49 No Long-term equity investment Consideration Shares, proceeds from the supporting financing, and the Company ’s own or self-raised funds 57
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2026 Interim Report 53 Section IV Management Discussion and Analysis (Continued) Name of investee Principal activities Whether the target is principally engaged in the investment business Investment method Merger consideration Shareholding Whether consolidated Financial statement line item of the parent company Sources of funds Investment income/ Net profit attributable to the equity holders of the parent company during the Reporting Period RMB ten thousand % RMB million Guoyuan Power Coal mining, processing and sales; power generation No Acquisition 4,458,199.29 100 Yes Long-term equity investment Consideration Shares, proceeds from the supporting financing, and the Company ’s own or self-raised funds 1,263 Chemical Company Coal chemicals, clean conversion and utilisation of coal 2,987,773.41 100 1,478 Wuhai Energy Coal mining, processing and sales; power generation 1,421,429.33 100 342 Xinjiang Energy 1,212,142.76 100 635 Inner Mongolia Construction Investment 772,762.78 100 198 Shenyan Coal Coal mining, processing and sales 769,170.66 41 1,444 Pingzhuang Coal 558,380.93 100 624 Baotou Mining 454,261.28 100 117 Shipping Company Cargo shipping, transportation agency 214,179.65 100 204 Coal Trading Company Wholesale operation and transportation agency services for coal 86,102.61 100 548 Port Company Harbour operation 47,359.85 100 28 Note: The investment income/net profit attributable to the equity holders of the parent company for the Reporting Period disclosed in the above table was prepared in accordance with the China Accounting Standards for Business Enterprises. The data has not been audited.
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China Shenhua Energy Company Limited 54 Section IV Management Discussion and Analysis (Continued) 3. Material Investment in Non-equity Interest ½ Applicable ✓ Not applicable 4. Financial Assets at Fair Value The financial assets at fair value held by the Group were mainly structured deposit products held by the Company, non-trading equity investments that have no significant impact on the investees, bank acceptance bills that are planned to be discounted or endorsed and investments in investment funds established with the participation of the Group. For details, please refer to “Fair Value Measurement of Financial Instruments ” in the notes to the financial statements in this report. Unit: RMB million Category of assets At the beginning of the period Gains and losses from fair value changes for the Reporting Period Cumulative changes in fair value included in equity Impairment provided for the Reporting Period Amount of purchase for the Reporting Period Amount of disposal/ redemption for the Reporting Period Other changes At the end of the period Financial assets at fair value through profit or loss (current assets) 0 Note 1 / / 13,900 (7,200) / 6,701 Investments in equity instruments at fair value through other comprehensive income 6,942 / 269 / / / / 7,211 Financial assets at fair value through other comprehensive income 2,010 / / / / / (947) 1,063 Financial assets at fair value through profit or loss (non-current assets) 133 (10) / / / / / 123 Total 9,085 (9) 269 / 13,900 (7,200) (947) 15,098 Note: The amount is less than RMB500,000.
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2026 Interim Report 55 Section IV Management Discussion and Analysis (Continued) Investments in equity instruments at fair value through other comprehensive income held by the Group include shares held by Pingzhuang Coal, a wholly-owned subsidiary of the Company, as detailed below: Unit: RMB million Type of securities Stock code Abbreviation Initial investment cost Sources of fund Opening carrying amount Gains and losses from fair value changes for the period Cumulative changes in fair value included in equity Amount of purchase for the period Amount of disposal for the period Gains and losses from investment for the period Closing carrying amount Accounting item Shares 001289 Longyuan Power 2,398 Self-owned funds 3,192 0 919 0 0 0 3,317 Other investments in equity instruments Total / / 2,398 / 3,192 0 919 0 0 0 3,317 / Note: The above financial data was prepared in accordance with the China Accounting Standards for Business Enterprises. The data has not been audited. (VII) Disposal of Material Assets and Equity Interest ½ Applicable ✓ Not applicable (VIII) Analysis of Major Holding and Associated Companies 1. Major Subsidiaries Unit: RMB million Registered capital Total assets Net assets Net profit attributable to the equity holders of the parent company No. Company Principal activities As at 30 June 2026 The first half of 2026 The first half of 2025 Change Main reasons for changes % 1 Shuohuang Railway Railway transportation 15,231 52,038 41,488 3,713 3,419 8.6 Increase in transportation turnover of railway 2 Jinjie Energy Coal mining, processing and sales, power generation 3,802 27,814 25,941 1,782 1,569 13.6 Increase in sales volume and average sales price of coal 3 Chemical Company Coal chemicals, clean conversion and utilisation of coal 36,164 64,722 24,821 1,478 (468) / Shutdown of coal-to- liquids production facilities for modification due to process upgrades during the corresponding period of last year 4 Shenyan Coal Coal mining, processing and sales 2,739 15,055 13,123 1,444 1,169 23.5 Increase in sales volume and average sales price of coal 5 Guoyuan Power Power and heat generation, coal mining, processing and sales 47,261 87,687 54,094 1,263 1,740 (27.4) Decrease in average price of power sales 6 Zhunge ’er Energy Coal mining, processing and sales 7,102 30,127 21,977 1,236 1,479 (16.4) Increase in relevant late payment surcharges 7 Baorixile Energy Coal mining, processing and sales 1,169 16,548 12,705 1,098 1,621 (32.3) Decrease in sales volume of coal 8 Huanghua Harbour Administration Harbour operation 8,504 14,993 13,591 975 851 14.6 Decrease in waterway dredging fees
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China Shenhua Energy Company Limited 56 Section IV Management Discussion and Analysis (Continued) Registered capital Total assets Net assets Net profit attributable to the equity holders of the parent company No. Company Principal activities As at 30 June 2026 The first half of 2026 The first half of 2025 Change Main reasons for changes % 9 Trading Group Wholesale operation and transportation agency services for coal 7,789 30,884 15,648 924 401 130.4 Increase in sales volume and average sales price of coal 10 Shengli Energy Coal mining, processing and sales, power generation 2,925 17,468 12,822 818 791 3.4 11 Xinjiang Energy Coal mining, processing and sales 9,213 28,554 11,362 635 46 1,280.4 Increase in sales volume and average sales price of coal 12 Pingzhuang Coal Coal mining, processing and sales 4,354 35,405 4,544 624 585 6.7 Increase in sales volume and average sales price of coal 13 Railway Equipment Locomotive and vehicle maintenance for railway, railway transportation 6,300 21,493 12,306 600 793 (24.3) Increase in income tax expense 14 Coal Trading Company Wholesale operation and transportation agency services for coal 323 3,512 1,754 548 16 3,325.0 Increase in sales volume and profit of imported coal 15 Xinshuo Railway Railway transportation 10,888 26,634 15,704 508 338 50.3 Increase in transportation turnover of railway Notes: 1. The financial information of the major subsidiaries disclosed in the above table was prepared in accordance with the China Accounting Standards for Business Enterprises. The data has not been audited. 2. Under the China Accounting Standards for Business Enterprises, in the first half of 2026, the revenue of Shuohuang Railway was RMB11,711 million and the operating profit was RMB4,956 million. 3. During the Reporting Period, adjustments to the business model of Shendong Coal, a wholly-owned subsidiary of the Company, resulted in year-on-year changes in its operating results, which had no material impact on the consolidated operating results of the Company. 2. Major Companies in Which the Company Has Invested The Company did not have investment income from a single investee company with an amount exceeding 10% of the net profit attributable to the equity holders of the Company. Please refer to the section headed “Significant Events ” of this report for details of the Finance Company.
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2026 Interim Report 57 Section IV Management Discussion and Analysis (Continued) 3. Acquisition and Disposal of Subsidiaries during the Reporting Period Name of company Ways of acquiring and disposing of subsidiaries during the Reporting Period Impacts on production, operation and results as a whole Guoyuan Power, Xinjiang Energy, Chemical Company, Wuhai Energy, Pingzhuang Coal, Inner Mongolia Construction Investment, Shenyan Coal, Baotou Mining, Shipping Company, Coal Trading Company, Port Company Business combination under common control. During the Reporting Period, the Company completed the acquisition of equity interests in 12 target companies collectively held by its controlling shareholder, China Energy, and its wholly-owned subsidiary, Western Energy (the “Transaction ”), of which 11 target companies, including Guoyuan Power, were included in the consolidated financial statements of the Company. The Transaction will enable the Group to further integrate its coal mining, pithead coal-fired power generation, coal chemicals and logistics services businesses, significantly expand the Group ’s resource reserves and core business production capacity, and further optimise the layout and capacity matching of its integrated industry chain, thereby creating favourable conditions for promoting clean production, reducing operating costs and enhancing the Group ’s overall sustainable profitability. Note: Save as disclosed above, the Company ’s other acquisitions and disposals of subsidiaries had no significant impact on the overall production and operations or results of the Company. (IX) Structured Entities Controlled by the Company ½ Applicable ✓ Not applicable
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China Shenhua Energy Company Limited 58 Section IV Management Discussion and Analysis (Continued) (X) Completion of Capital Expenditure Plan for 2026 Details of the Group ’s adjusted capital expenditure plan for 2026 are set out in the Company ’s 2026 first quarter report. As at 30 June 2026, the capital expenditure plan and the planned sources of funding for the relevant investments remained consistent with previously disclosed information and had not changed. The status of the Group ’s capital expenditure plan for the first half of 2026 is as follows: Unit: RMB100 million Plan for 2026 (Adjusted) Completed in the first half of 2026 Coal segment 153.45 62.71 Power segment 215.22 116.54 Transportation segment 91.96 22.89 Including: railway segment 71.12 12.86 port segment 20.80 10.02 shipping segment 0.04 0.01 Coal chemical segment 91.48 29.01 Others 7.76 1.75 Total 559.87 232.90 In the first half of 2026, total capital expenditure of the Group amounted to RMB23.290 billion. It was mainly used for: the construction of projects including Xinjie No. 1 Mine and No. 2 Mine, Tarangaole Mine, Boligou Coal Mine and Hongshaquan No. 2 Open-pit Mine, the purchase of coal mine equipment and technological upgrades; the construction of thermal power projects such as Dingzhou Phase III and Cangdong Phase III; the construction of Dongyue Railway and railway capacity expansion; and the construction of the Huanghua Port (coal port area) Phase V Project; and the construction of Coal-to-Olefins Upgrading Demonstration Project, Yulin Circular Economy Coal Comprehensive Utilisation Project, Ordos Coal-to-Liquids Upgrading Demonstration Project, etc. The Group ’s capital expenditure plan may be subject to change in response to the development of business plans (including potential acquisitions), the progress of capital projects, market conditions, the outlook for the future business environment and the obtaining of necessary permits and approvals. Except as required by law, the Company shall not assume any obligation to update the information on the capital expenditure plan. The Company intends to fund its capital expenditures through cash generated from operating activities, short-term and long-term loans, and other debt and equity financing. (XI) Contingent Liabilities Details of the Group ’s contingent liabilities are set out in the “Contingencies ” in the notes to the financial statements in this report.
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2026 Interim Report 59 Section IV Management Discussion and Analysis (Continued) V. IMPLEMENTATION OF THE 2026 CORPORATE VALUE AND RETURN ENHANCEMENT ACTION PLAN On 30 March 2026, the 17th meeting of the sixth session of the Board of the Company considered and approved the 2026 Corporate Value and Return Enhancement Action Plan. The implementation of the action plan in the first half of the year is as follows. 1. Striving to Improve Operating Quality and Efficiency and Enhance Value Creation Capabilities The Company achieved satisfactory results for its major operational indicators by striving to expand market and increase revenue, strengthening cost control and continuously improving the quality and efficiency of its development. In the first half of 2026, the production and operations of the Company maintained a steady and positive trend. The operational indicators of its transportation, power generation and coal chemical businesses achieved year-on-year growth. The unit production cost of self-produced coal decreased year-on-year. Key financial indicators such as operating revenue and net profit attributable to shareholders of the Company achieved year-on-year growth. The overall profitability of the Company ranked at the forefront of the industry. 2. Strengthening Energy Supply Responsibility and Improving Production and Operation Efficiency Guided by the “151” strategy, the Company deeply implemented the new energy security strategy, continuously consolidated the core advantages of integrated operations, and effectively guaranteed the safe and stable supply of energy. With the successful completion of the largest purchase of assets through issuance of shares in the history of the A-share market, the coal resource reserves and coal production volume of the Company increased substantially, and its coal production capacity was significantly enhanced. The Company carried out the preparation of the “15th Five-Year Plan ” with high quality, made forward- looking plans for the layout of strategic emerging industries and promoted the construction of key projects to boost the high-quality development of the Company. The construction of Xinjie No. 1 Mine and No. 2 Mine progressed as planned; several power generation units including Qingyuan Phase II, Dingzhou Phase III and Cangdong Phase III were put into operation; and the construction of key projects such as Phase V of Huanghua Port advanced in an orderly manner, facilitating the enhancement of energy supply guarantee capabilities.
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China Shenhua Energy Company Limited 60 Section IV Management Discussion and Analysis (Continued) 3. Deepening Benchmarking Efforts and Tapping Internal Potential for Cost Reduction The Company adhered to budget guidance, timely adjusted and formulated its 2026 annual business plan, continued to strengthen business analysis, and tracked the fulfilment of major indicators. In the first half of the year, cost control across all segments was effective. The Company coordinated and refined its financing and repayment mechanisms, reduced its borrowing costs, and significantly improved the efficiency of its capital turnover, effectively achieving refined cost reduction in its financing and debt repayment processes. The Company established a normalised fund position forecasting and dynamic monitoring mechanism, which substantially enhanced the accuracy of forecasting fund receipts and expenses and helped to realize advance deployment and dynamic balance of fund positions. On the basis of fully guaranteeing rigid capital requirements for daily operations, project investments and dividend distributions, the Company flexibly conducted low-risk capital operations. In the first half of the year, the Company purchased short-term structured deposits of RMB13.9 billion in aggregate, with expected income of RMB11 million, thereby preserving and increasing the value of its existing funds. 4. Strengthening Technological Innovation to Facilitate the Development of New Quality Productive Forces The Company made significant efforts in the clean and efficient utilisation of coal and achieved outstanding results in technological innovation. The project “Key Technology and Application of Green and Intelligent Development of Scarce and High-Quality Leftover Coal and Coalbed Methane ” (ॹᎴሯ፲ʿᄴंၠЍ౽ঐක೯ᗫᒟҦஔၾᏐ͜) won the second prize of the 2025 National Science and Technology Progress Award, which promoted the high-end upgrading and digital and intelligent transformation of its leftover coal mining equipment and enhanced its capability to safeguard national energy security. The project “Key Technology and Engineering Verification of Ammonia Co-firing in 600MW Coal-fired Power Generation Boilers ” (600MW ዷ೯ཥᒢᘟ૿ऄዷደᗫᒟҦஔၾʈ᜕ ᗇ) was appraised by the Chinese Society for Electrical Engineering as having reached an internationally leading level, providing a feasible technical path for clean carbon reduction and multi-energy complementarity in coal-fired power generation. The first automatic platooning driving test of the 35,000-tonne heavy-haul group trains was successfully completed. Guoneng Xinjiang Chemical Co., Ltd. completed the “Key Technology and Application Demonstration of Using Coal Chemical Gasification Coarse Slag for Saline-Alkali Soil Amelioration ” (ήɺᘎҷԄᗫᒟҦஔʿᏐͪ͜ᇍ), using industrial solid waste to restore saline-alkali wastelands. The Company ’s green and low-carbon transformation and development was accelerated and driven by technological innovation.
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2026 Interim Report 61 Section IV Management Discussion and Analysis (Continued) 5. Reinforcing Capital Operation to Leverage the Role of the Listed Company Platform The Company successfully completed the acquisition of relevant assets from the controlling shareholder, substantially resolving the competition in the same industry, and achieving a dual improvement in capital market image and investor trust. The RMB20 billion supporting financing successfully attracted diversified investors such as insurance funds and national industrial funds, breaking the scale record for matching financing in restructurings via price inquiry in the A-share market, and it is also the largest equity refinancing project in the history of the coal industry. During the Reporting Period, the Company ’s overall market capitalisation exceeded RMB1 trillion at its peak, ranking among the top three in the energy industry in the A-share market. 6. Improving Corporate Governance and the ESG System to Enhance Brand Value The Company implemented the relevant requirements of the “Code of Corporate Governance for Listed Companies ”, studied and formulated the “Measures for the Remuneration Management of Directors and Senior Management of China Shenhua Energy Company Limited (Trial) ” (ج(༊ Б)), and established and improved the remuneration incentive and constraint mechanism for directors and senior management. The Company strengthened the tenure-based and contractual management of its management team members, and rigidly linked the business performance appraisal results of the management team members with their remuneration, and ensured strict fulfillment. The Company completed the development of its rules and regulations such as the “Measures for the Environmental, Social, and Governance Management of Suppliers ” (), and continuously optimised its supply chain ESG management system. The Company enriched its brand connotations and reinforced its brand building. In the “2026 China Brand Value Evaluation Information ” (2026 ࢹڦlist released by the China Council for Brand Development and the Brand Work Office of Xinhua News Agency, the brand value of the Company reached RMB241.505 billion, maintaining a leading position in the energy and chemical sector.
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China Shenhua Energy Company Limited 62 Section IV Management Discussion and Analysis (Continued) 7. Persisting in Generating Returns for Shareholders to Facilitate the Realisation of the Company ’s Value The Company continuously improved the “11257 ” market capitalisation management system with China Shenhua characteristics, and solidly advanced various tasks. It adhered to a stable and sustainable profit distribution policy, actively responded to regulatory requirements and the appeals of shareholders, and protected the legitimate rights and interests of shareholders. The Company continuously implemented the 2025-2027 shareholder return plan. The total amount of interim and final cash dividends distributed for the year 2025 reached RMB41.811 billion (tax inclusive), accounting for 79.1% of the net profit attributable to shareholders of the Company for the year, representing an increase of 2.6 percentage points compared to the year 2024. The Board of the Company proposed to continue interim dividend distribution for the year 2026. Since its listing, the cumulative dividend distribution amount of the Company has exceeded RMB530 billion. Its consistent and stable profit distribution policy has delivered substantial long-term returns to its shareholders, facilitating the full realisation of the Company ’s value and shareholders ’ interests in the capital market. 8. Adhering to Market Demand Orientation and Maintaining Effective Communication with Investors The Company adhered to compliance guidance and professional empowerment, and solidly improved the quality of information disclosure. It improved its investor demand-oriented information disclosure mechanism, deeply understood investor demands, timely adjusted the content and format of information disclosure, and strengthened the information disclosure of its coal and coal chemical businesses in light of its newly consolidated assets. The Company strengthened communication and exchanges with investors and actively responded to the appeals of investors. It held results briefings for its 2025 annual report and 2026 first quarterly report, and conducted over 60 sessions of various investor communication activities such as investor research, broker strategy meetings and roadshows, communicating with investors for over 1,000 person-times cumulatively. As at 30 June 2026, the overall market capitalisation of the Company reached RMB832.6 billion, representing an increase of 5.9% compared to the end of 2025. The market capitalisation level of the Company generally remained stable in the first half of the year, realising the unification of market value and intrinsic value.
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2026 Interim Report 63 Section IV Management Discussion and Analysis (Continued) VI. POSSIBLE RISKS AND COUNTERMEASURES The major risks facing the Company are mainly risks in safety and environmental protection, investment, compliance, project management, market competition, integrated operations, policy and international operations (please refer to the Company ’s 2025 Annual Report for details), while no new risk factor was added during the Reporting Period. The Company has established a closed-loop risk management system, which includes risk identification at the beginning of the year, quarterly risk monitoring, dynamic risk assessment, routine inspections and early warning, as well as year-end supervision and evaluation. This system provides strong support for improving decision-making processes, refining internal control systems and enhancing risk management standards. The Board and the Audit and Risk Management Committee of the Company believe that such mechanism is capable of assessing the effectiveness of operation of the Company ’s risk management. During the Reporting Period, the Company has adopted the following measures in response to major risks: 1. In safety and environmental protection, the Company strictly implemented production safety responsibilities and continuously improved and refined the workplace safety responsibility system. The Company firmly established a red line awareness, tightened and consolidated production safety responsibilities, and deeply promoted the dual prevention mechanism of hierarchical control of safety risks and investigation and treatment of hidden dangers. It adopted strict controls on major safety risks, comprehensively strengthened on-site safety management, and carried out investigation and remediation of hidden safety dangers earnestly. In response to environmental protection risks, the Company continued to fight the battle against pollution, continuously strengthened environmental monitoring, strictly observed the ecological red line, and vigorously promoted the construction of green mines, green and intelligent heavy-haul railways, green ports, and green shipping. It developed renewable energy with high quality, promoted green, low-carbon and energy-saving transformations, ensured the achievement of various energy-saving and emission-reduction targets, and put an end to the occurrence of major environmental pollution incidents. 2. In investment management, the Company strengthened planning guidance and direction control, closely monitored policy changes and market opportunities, optimised investment strategies, refined investment management systems, and strengthened preliminary project research and demonstration. The Company implemented a “four checkpoints ” mechanism in the investment process by integrating the four checkpoints of “return, cost, progress and compliance ” into the entire investment process, and promoted project construction meticulously with a particular focus on risk control for major projects. The Company continued to focus on investment plans, expanded effective investment, reasonably controlled the pace of project investment, strengthened research and supervision on the execution of investment plans, carried out project post-evaluation works in an active, orderly and standardised manner, and continued to improve its investment risk prevention and control system and enhance its investment efficiency and effectiveness.
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China Shenhua Energy Company Limited 64 Section IV Management Discussion and Analysis (Continued) 3. In compliance management, the Company fully advanced the construction of a “world-class rule-of-law enterprise ”, improved its compliance system management framework, continued to advance the work of “establishing, revising and abolishing ” systems, and practically enhanced their alignment with laws, regulations and policies. The Company strengthened the source prevention and control and governance of hidden compliance risks, carried out comprehensive and thorough risk investigations, established risk ledgers for legal disputes and penalties for violations, studied and formulated resolution and pre-control measures for major risks, clarified responsible leaders and personnel, and strengthened communication and coordination. 4. In project management, the Company continuously strengthened the unified control over construction plans, technology, technological economics, safety and quality of engineering projects, strengthened the preliminary management of engineering projects and the management of participating construction teams, implemented strict control on engineering design, estimates and settlements, strengthened engineering cost control, tracked and monitored project construction status in real time, and formulated effective measures in a timely manner to reduce or eliminate the impact of factors causing schedule extensions. The Company strengthened construction safety management, firmly implemented the rectification of hidden safety risks in engineering projects, prepared safety emergency plans practically, and put an end to safety accidents of a relatively large scale or above resolutely. The Company implemented the engineering quality supervision system for projects under construction, strengthened the supervision and management of the quality performance of participating units and the physical quality of engineering works, and carried out process supervision for engineering quality and quality certification for units and individual engineering works in order to prevent the risk of engineering quality accidents. 5. In market competition, the Company optimised its comprehensive market analysis and judgment system and business strategies, and built a closed-loop mechanism where market analysis drives production and operation decisions. The Company enhanced its collaborative operation capabilities, improved its coal sales system and business mechanisms, enhanced its transport capacity on the transportation side, strengthened the collaborative linkage of various industries, and enhanced its integrated capability to respond to market changes. The Company refined its cost control, reinforced its management on “volume, price, cost and efficiency ”, adhered to optimizing incremental business and enhancing the efficiency of existing business, strived for progress while maintaining stability with improvement in quality and efficiency, coordinated and optimised resource allocation, and carried out cost control over the entire industry chain in order to enhance its market competitiveness.
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2026 Interim Report 65 Section IV Management Discussion and Analysis (Continued) 6. In integrated operation management, the Company continued to strengthen the core advantages of the integrated operation of its coal, power, chemicals and transportation businesses by focusing on the comprehensive coordination and balance of integrated operation while ensuring production safety. The Company implemented a “one main body, two wings ” strategy for the coal-based industry with coal as the main body and coal-fired power and coal chemicals as the two wings. The Company accelerated its upgrading works for new-generation coal-fired power to enhance its highly efficient regulation capabilities such as deep peak shaving and fast ramping. Guided by national strategies, the Company developed its modern coal chemical business scientifically and orderly with an aim to gain competitive advantages in high value-added products, technology, brand and scale. The Company strived to create a new modernised logistics system with railways as the core, ports as the support, and shipping as the extension, and continued to enhance the resilience of the integrated industrial chain, value chain and supply chain. 7. In policy research, the Company strengthened the research on latest national industrial policies and industry regulations, strengthened policy synergy, seized the policy window period for resource succession, and promoted resource succession, reserve and production increase, license acquisition and capacity verification and expansion. The Company focused on principal businesses, reasonably matched the investment scale of each segment, and solidly advanced the clean and efficient utilisation of coal. The Company adhered to the direction of green, clean and low-carbon development, accelerated the layout of strategic emerging industries, and promoted industrial upgrading and green and low-carbon transition. The Company actively responded to the requirements of the carbon peaking action plan of the “15th Five-Year Plan ”, strengthened carbon asset management, and synergistically promoted new energy green power and green certificate trading, and improved its policy risk assessment mechanism by establishing a policy monitoring and early warning system to capture policy trends in real time so as to enhance its ability to withstand policy risks. 8. In international operations, the Company continued to strengthen the analysis and judgment of the international situation, especially the research on the policy orientation of major countries, changes in investment policies of host countries, the Russia-Ukraine situation, the US-Iran war, the coal-based energy market and public security risks. The Company diversely expanded overseas businesses, actively and prudently studied cooperation opportunities for energy projects, including coal and coal chemical projects, and expanded international energy industry cooperation. The Company strengthened the collection, analysis and research of information prior to the investment decision-making of overseas projects, and carried out resource assessment, economic benefit evaluation and technical evaluation of overseas projects to ensure their economic and technical feasibility. The Company strengthened overseas risk screening, regularly monitored overseas political, economic and legal compliance risks, and took multiple measures to prevent and resolve risks. The Company strengthened cultivation and introduction of interdisciplinary talents, and actively and steadily implemented the “Going Global ” strategy in accordance with the requirements of coordinating the overall domestic and international situations. During the Reporting Period, there was no material change in the exchange rate risks faced by the Group. The Group will continue to actively monitor changes in exchange rates and take effective measures to mitigate risks arising from exchange rate fluctuations. Investors should be aware that although the Company has assessed major risks and adopted relevant countermeasures, there is no absolute guarantee that all adverse impact could be eliminated due to the limitation of various factors.
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China Shenhua Energy Company Limited 66 Section V Corporate Governance, Environment and Society I. CORPORATE GOVERNANCE OVERVIEW The Company has established a relatively sound corporate governance structure and a smooth operating mechanism, and there are no material differences from the laws, administrative regulations and requirements of the China Securities Regulatory Commission regarding the governance of listed companies. The Board is responsible for implementing good corporate governance of the Company. The Company has been in compliance with the requirements of corporate governance policies under the Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules (the “Corporate Governance Code ”) to establish its own system of corporate governance. The convening, voting and disclosure procedures of Board meetings of the Company, rules of procedure of the Board and procedures for nomination and election of directors are in compliance with relevant requirements. Being a standing decision-making body of the Company, the Board is accountable to the shareholders ’ general meeting, and exercises functions and powers in accordance with the requirements of Article 126 of the Articles of Association and relevant applicable regulatory requirements. Being a standing executive body of the Company, operating management comprising senior management including the Chief Executive Officer, is accountable to the Board and exercises functions and powers in accordance with the requirements of Article 160 of the Articles of Association and relevant applicable regulatory requirements. The Articles of Association set out the respective duties of the Chairman of the Board and the Chief Executive Officer in detail. The positions of the Chairman of the Board and the Chief Executive Officer of the Company are held by different personnel. On 24 March 2025, Mr. Lv Zhiren resigned as the Chairman of the Board and an executive director of the Company, and ceased to be the chairman and a member of the Strategy and Investment Committee, a member of the Nomination Committee and a member of the Remuneration and Assessment Committee of the Board. The resignation of Mr. Lv Zhiren did not result in the number of members of the Board of the Company falling below the statutory minimum number of directors. Upon the unanimous recommendation of the incumbent directors, Mr. Zhang Changyan, an executive director and the Chief Executive Officer, shall convene Board meetings until a new Chairman of the Board is elected. The Company has been actively conducting relevant work to fill the vacancy of the Chairman of the Board as soon as practicable. Save as disclosed above, during the six months ended 30 June 2026, the Company has fully complied with the principles and code provisions set out in the Corporate Governance Code, and has complied with substantially all of the recommended best practices. The terms of reference of the Board and its special committees in fulfilling the Corporate Governance Code are set out in the Articles of Association and the rules of procedure of the Board and its special committees. These documents are published on the websites of the stock exchanges where the shares are listed and the website of the Company.
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2026 Interim Report 67 Section V Corporate Governance, Environment and Society (Continued) The Board of the Company has established the board diversity policy for members of the Board, which was set out in the rules of procedure of the Nomination Committee of the Board of the Company and has been disclosed. When selecting the candidates of Board members in accordance with the board diversity policy of the Company, the Board will adopt a series of diversified criteria, including but not limited to gender, age, culture and educational background, race, skills, knowledge and professional experience, as the basis, and will take both the characteristics and role of the personnel into account. As at the end of the Reporting Period, the Board of the Company consisted of 7 directors, including 1 executive director, 2 non-executive directors, 3 independent non-executive directors and 1 employee director. Among them, there were 6 male directors and 1 female director who served as a member of the Nomination Committee and the Strategy and Investment Committee under the Board of the Company. Directors are from various domestic and overseas industries, and the composition of the members has diversified characteristics. The knowledge and professional expertise of each director are both specialised and complementary to each other in the overall structure of the Board, which is conducive to ensuring the scientific soundness of decision-making of the Board. The Company has set up the Audit and Risk Management Committee in accordance with the Hong Kong Listing Rules. The Audit and Risk Management Committee comprised Dr. Chen Hanwen (chairman of the Audit and Risk Management Committee, with professional qualifications and experience in related fields such as accounting, audit and risk management), Dr. Yuen Kwok Keung and Mr. Wang Hong, all of whom are independent non-executive directors. The principal duties of the Audit and Risk Management Committee during the Reporting Period include: reviewing and overseeing the Company ’s financial reporting process and internal control procedures; reviewing the Company ’s financial reporting, financial controls, internal control and risk management systems; effectively overseeing the work of the external auditor; providing guidance on the Company ’s internal audit function and promoting the establishment of effective internal controls to ensure the preparation of true, accurate and complete financial reports; supervising and assessing the work of the external auditors; proposing to engage or replace the external auditors; supervising and evaluating the internal audit work; coordinating the internal audit and the external audit; reviewing the financial information of the Company and its disclosure; supervising and evaluating the internal control of the Company; exercising the powers and duties of the supervisory committee as prescribed under the Company Law and other matters authorised by laws and regulations, the self-regulatory rules of the stock exchange and the Articles of Association and the Board. On 25 August 2026, the Audit and Risk Management Committee reviewed the Group ’s interim financial statements for the six months ended 30 June 2026 and the financial information set out in this report, and agreed to submit the same to the Board for consideration. The Company has established the Independent Board Committee comprising Dr. Yuen Kwok Keung, Dr. Chen Hanwen and Mr. Wang Hong. During the Reporting Period, the Independent Board Committee performed duties in accordance with the law and has considered, among others, the Resolution on the Mandate of the Company to Issue Shares and Raise Supporting Funds,
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China Shenhua Energy Company Limited 68 Section V Corporate Governance, Environment and Society (Continued) the Resolution on the Entering into of the 2027-2029 Mutual Coal Supply Agreement with China Energy Investment Corporation Limited, the Resolution on the Entering into of the 2027-2029 Mutual Supplies and Services Agreement with China Energy Investment Corporation Limited, the Resolution on the Entering into of the 2027-2029 Financial Services Agreement with China Energy Finance Co., Ltd. and the Resolution on the Entering into of the 2027-2029 Factoring Services Agreement with Guoneng (Beijing) Commercial Factoring Co., Ltd., and agreed to submit the same to the Board for consideration. The securities transactions of the directors of the Company have been carried out in accordance with the “Model Code for Securities Transactions by Directors of Listed Issuers ” (the “Model Code”) set out in Appendix C3 to the Hong Kong Listing Rules. The Model Code is also applicable to the senior management of the Company. The directors and senior management of the Company have confirmed that they have fully complied with the Model Code and relevant policies of the Company during their respective terms of office in the first half of 2026. As at the end of the Reporting Period, none of the directors or chief executives of the Company held any shares of the Company, nor did they have any interests or short positions in any shares and underlying shares of the Company or its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)) which were required, pursuant to section 352 of the Securities and Futures Ordinance, to be recorded in the register referred to therein, or to be notified to the Company and the HKEx pursuant to the Model Code as set out in Appendix C3 to the Hong Kong Listing Rules. II. CHANGES IN DIRECTORS AND SENIOR MANAGEMENT OF THE COMPANY On 28 May 2026, Dr. Yuen Kwok Keung and Dr. Chen Hanwen, the independent non-executive directors of the Company, having served in their positions for six consecutive years, tendered their resignations as independent non-executive directors of the Company and from their positions on the relevant special committees of the Board in accordance with the relevant provisions. The resignation of Dr. Yuen Kwok Keung and Dr. Chen Hanwen would result in the number of independent directors of the Board and the proportion of independent directors in the relevant special committees under the Board of the Company failing to comply with the requirements of the relevant laws and regulations and the Articles of Association, as well as the absence of an independent director with appropriate accounting expertise. Pursuant to the Company Law of the PRC, the Measures for the Administration of Independent Directors of Listed Companies, the Articles of Association and other relevant provisions, Dr. Yuen Kwok Keung and Dr. Chen Hanwen will continue to perform their respective duties as independent non-executive directors and on the relevant special committees of the Board until the election of the new independent non-executive directors by the shareholders ’ general meeting of the Company. The twentieth meeting of the sixth session of the Board of the Company considered and approved the Resolution on Nomination of Candidates for Independent Non-executive Directors, pursuant to which Mr. Yih, Dieter Lai Tak and Ms. Zhang Mengjiao were nominated as candidates for independent non-executive directors of the sixth session of the Board of the Company. The resolution is subject to approval by the shareholders ’ general meeting of the Company.
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2026 Interim Report 69 Section V Corporate Governance, Environment and Society (Continued) III. EMPLOYEES As at 30 June 2026, the total number of employees of the Group was 126,036, the details are as follows: Number of current employees of the headquarters of the Company (number of persons) 168 Number of current employees of the subsidiaries and branches of the Company (number of persons) 125,868 Total number of current employees of the Group (number of persons) 126,036 Number of retired employees for whom the Group bears expenses (number of persons) 45,298 Functions Number of persons Category of functions Operation and maintenance 64,481 Management and administration 21,958 Finance 2,066 Research and development 6,245 Technical support 18,292 Sales and marketing 1,066 Others 11,928 Total 126,036 Education Level Number of persons Category of education levels Postgraduates 7,511 University graduates 57,783 College graduates 28,548 Specialised secondary school graduates 10,361 Graduates of technical school, high school and below 21,833 Total 126,036 Note: As at the end of the Reporting Period, the total number of employees of the Group increased as compared to the end of 2025. This was mainly due to the completion of acquisition of equity interests in a total of 12 target companies by the Company in the first half of 2026 from the controlling shareholder China Energy and its wholly-owned subsidiary Western Energy. Except for Jinshen Energy, the other 11 target companies were incorporated into the consolidated financial statements of the Company.
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China Shenhua Energy Company Limited 70 Section V Corporate Governance, Environment and Society (Continued) The Company has formulated a competitive remuneration policy in the industry that combines basic salary and performance assessment and is tilted in favour of front-line employees. For remuneration of the employees of the Group during the Reporting Period, see “Employee Benefits Payable ” in the notes to the financial statements of this report. The Company has established a multi-layered and multi-channel training system, providing employees with suitable training programmes on occupational skills, work safety, group-based management and other aspects. IV. PROFIT DISTRIBUTION PLAN (I) Proposal of Profit Distribution Plan for the First Half of the Year Whether for distribution or for capital conversion Yes Dividend per 10 shares (in RMB, inclusive of tax) 9.8 Explanation on the relevant circumstances for the proposal of profit distribution or capital reserve conversion See below 1. The 2026 Interim Profit Distribution Plan The 2024 annual general meeting of the Company, held on 20 June 2025, approved the proposal regarding the Shareholder Return Plan for 2025-2027 of the Company (“Shareholder Return Plan ”). In accordance with the provisions of the Articles of Association, the profit to be distributed in cash annually from 2025 to 2027 shall be no less than 65% of the net profit attributable to shareholders of the Company realised in the corresponding year and the Company may also implement interim profit distribution during such period after taking into account its operational performance, capital needs and other relevant factors. In accordance with the Shareholder Return Plan and considering the Company ’s operational circumstances, the Board of the Company recommends distributing an interim dividend for the year of 2026 of RMB0.98 per share (inclusive of tax) to all shareholders based on the total issued share capital as at the record date for the implementation of dividend distribution. Based on the Company ’s total issued share capital of 21,689,434,304 shares as at 30 June 2026, the total dividend will amount to RMB21,256 million (inclusive of tax), representing 68.4% of the profit attributable to equity holders of the Company for the first half of 2026 under IFRS Accounting Standards, and 74.0% of the net profit attributable to the shareholders of the Company under China Accounting Standards for Business Enterprises. The Company will convene the third extraordinary general meeting of 2026 on Wednesday, 23 September 2026 to consider the aforementioned dividend proposal.
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2026 Interim Report 71 Section V Corporate Governance, Environment and Society (Continued) The 2026 interim dividend will be denominated and declared in RMB, and will be paid in RMB to holders of the Company ’s A shares (including holders of the Company’s A shares through the Northbound Trading Link of the Shanghai-Hong Kong Stock Connect, hereinafter referred to as the “Northbound Shareholders ”), and to holders of the Company ’s H shares through the Southbound Trading Link (including Shanghai and Shenzhen markets, hereinafter referred to as the “Southbound Shareholders ”). Dividends to holders of the Company ’s H shares, except the Southbound Shareholders, will be paid in HKD. The applicable exchange rate for dividend payments in HKD shall be the benchmark exchange rate between the RMB and HKD announced by the Bank of China on the first business day following the date of the general meeting approving the 2026 interim profit distribution plan. In accordance with the preliminary arrangement of the interim profit distribution plan for year 2026 and the third extraordinary general meeting of 2026 of the Company, the interim dividend for the year 2026 for the Company ’s H shareholders is estimated to be distributed on or about 23 November 2026. 2. Dividend Distribution Arrangement for the Holders of the Company ’s A shares Pursuant to the Articles of Association of the Company, as at the close of trading in the afternoon on Friday, 18 September 2026 on the SSE, holders of the A shares of the Company and their proxies who are registered with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited are entitled to attend the 2026 third extraordinary general meeting of the Company and vote at the meeting. In accordance with the relevant regulations of the Shanghai Branch of China Securities Depository and Clearing Corporation Limited and the market practice for A-share dividend distributions, the details regarding the distribution of the Company ’s 2026 interim dividend for holders of the A shares of the Company will be announced separately in an announcement on the implementation of the dividend distribution following the 2026 third extraordinary general meeting of the Company, to determine the record date, ex-dividend date, and dividend payment date for the 2026 interim dividend of holders of A shares.
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China Shenhua Energy Company Limited 72 Section V Corporate Governance, Environment and Society (Continued) 3. Dividend Distribution Arrangement for the Holders of the Company ’s H Shares The temporary closure of register of members of H shares is arranged as follows: Temporary closure of the register of members No. Corresponding rights First day (inclusive) Last day/ record date (inclusive) Latest time for lodging transfer documents The Company ’s share registrar for H shares 1 Attending and voting at the 2026 third extraordinary general meeting Friday, 18 September 2026 Wednesday, 23 September 2026 4:30 p.m. on Thursday, 17 September 2026 Computershare Hong Kong Investor Services Limited 2 Entitled to the 2026 interim dividend Saturday, 10 October 2026 Friday, 16 October 2026 4:30 p.m. on Friday, 9 October 2026 Computershare Hong Kong Investor Services Limited The Company shall, based on the registered address ( “Registered Address ”) recorded in the register of members of H shares as at 16 October 2026, determine the residence of the individual H shareholders entitled to receive the 2026 interim dividend of the Company, and withhold and pay individual income tax accordingly. If the residence of the individual H shareholders is inconsistent with the Registered Address, such shareholders shall notify the Company ’s share registrar for H shares and provide the relevant supporting documents at or before 4:30 p.m. on 9 October 2026 at Computershare Hong Kong Investor Services Limited of 17M Floor, Hopewell Centre, 183 Queen ’s Road East, Wan Chai, Hong Kong, telephone (852) 2862 8555. (II) The Execution of the Profit Distribution Plan During the Reporting Period On 26 June 2026, the 2025 annual general meeting of the Company approved the distribution of the 2025 final dividend of RMB1.03 per share (inclusive of tax) to all shareholders, with a total amount of RMB22,340 million (inclusive of tax). As at the date of disclosure of this report, the payment of the aforesaid dividends has been completed. The distribution of the 2025 final dividend meets the requirements of the resolutions of the general meeting of the Company. V. SHARE INCENTIVE SCHEME, EMPLOYEE STOCK OWNERSHIP PLAN OR OTHER EMPLOYEE INCENTIVE SCHEME OF THE COMPANY AND THEIR IMPACTS ½ Applicable ✓ Not applicable
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2026 Interim Report 73 Section V Corporate Governance, Environment and Society (Continued) VI. ENVIRONMENTAL INFORMATION OF THE LISTED COMPANY AND ITS MAJOR SUBSIDIARIES INCLUDED ON THE LIST OF ENTERPRISES TO DISCLOSE ENVIRONMENTAL INFORMATION IN ACCORDANCE WITH THE LAW As at 30 June 2026, there were a total of 65 enterprises in the Group which were included in the list of enterprises to disclose environmental information in accordance with the law. No. Name of enterprise Reference index for the report on disclosure of environmental information according to law 1 China Energy Baotou Coal Chemical Co., Ltd. http://111.56.142.62:40010/ cas/login?pagePublishTicket= 888f4e8f2c91403aaf2149d2d 9322e91 2 Shuiquan Open-cut Mine of China Energy Baotou Energy Co., Ltd. 3 Explosive Plant of Shenhua Zhunge ’er Energy Co., Ltd. 4 Ha’erwusu Open-cut Mine of China Shenhua Energy Company Limited 5 Shenhua Zhunge ’er Energy Co., Ltd. 6 China Energy Shendong Coal Group Co., Ltd. 7 Bu’ertai Colliery of China Energy Shendong Coal 8 Shangwan Coal Mine of China Energy Shendong Coal 9 Bulianta Coal Mine of China Energy Shendong Coal 10 Wulan Mulun Coal Mine of China Energy Shendong Coal Group Co., Ltd. 11 China Energy Group Shendong Coal Mining Services Co., Ltd. 12 Plant II of Equipment Maintenance Center of Shendong Coal Branch 13 China Energy Shendong Zhuanlongwan Coal Transportation Co., Ltd. 14 China Energy Hangjin Energy Co., Ltd. 15 Power Plant of Guoneng Yili Energy Co., Ltd. 16 Huangyuchuan Colliery of Guoneng Yili Energy Co., Ltd. 17 Wanli First Colliery of China Energy Baotou Energy Co., Ltd. 18 Guodian Construction and Investment Inner Mongolia Energy Co., Ltd. 19 Gangue Power Generation Branch of Shenhua Zhunge ’er Energy Co., Ltd. 20 Ordos Coal Liquefaction Branch of China Shenhua Coal Liquefaction and Chemical Company Limited
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China Shenhua Energy Company Limited 74 Section V Corporate Governance, Environment and Society (Continued) No. Name of enterprise Reference index for the report on disclosure of environmental information according to law 21 China Energy Beidian Shengli Energy Co., Ltd. 22 Shengli Power Plant of China Energy Beidian Shengli Energy Co., Ltd. 23 China Energy Baorixile Energy Co., Ltd. 24 Zhani River Open-Pit Mine of Inner Mongolia Dayan Mining Industry Group Co., Ltd. 25 Inner Mongolia Mengdong Energy Co., Ltd. 26 Yuanbaoshan Open-cut Mine of Inner Mongolia Pingzhuang Coal Industry (Group) Co., Ltd. 27 China Energy Shaanxi Shenmu Power Co., Ltd. http://113.140.66.227:11077/#/ noLogin/index28 China Energy Jinjie Energy Co., Ltd. 29 Daliuta Thermal Power Plant of Shenhua Shendong Power Co., Ltd. 30 Dianta Power Plant of Shenhua Shendong Power Co., Ltd. 31 Guojiawan Power Plant of Shenhua Shendong Power Co., Ltd. 32 Daliuta Colliery of Shendong Coal Branch of China Shenhua Energy Company Limited 33 Yujialiang Coal Mine of Shendong Coal Branch of China Shenhua Energy Company Limited 34 China Energy Yulin Chemical Co., Ltd. 35 Shaanxi Shenmu Chemical Industrial Co., Ltd. 36 Shaanxi Deyuan Fugu Energy Co., Ltd. 37 Shanxi Lujin Wangqu Power Generation Co., Ltd. https://sthjt.shanxi.gov.cn/ qyhjxxyfpl/#/38 Baode Coal Mine of China Shenhua Energy Company Limited 39 Guoneng Shanxi Hequ Power Generation Co., Ltd. 40 Guoneng Xinjiang Chemical Co., Ltd. https://xxpl.xjpmic.cn:9015/ index41 State Grid Energy Hami Coal and Electricity Co., Ltd. 42 Huayuan Power Plant of State Grid Energy Hami Coal and Electricity Co., Ltd. 43 China Energy Yudean Taishan Power Co., Ltd. https://gdee.gd.gov.cn/ gdeepub/front/dal/dal/ newindex 44 China Energy (Huizhou) Thermal Power Co., Ltd. 45 China Energy Qingyuan Power Generation Co., Ltd.
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2026 Interim Report 75 Section V Corporate Governance, Environment and Society (Continued) No. Name of enterprise Reference index for the report on disclosure of environmental information according to law 46 China Energy Guangtou Liuzhou Power Generation Co., Ltd. http://bqfq.sthjt.gxzf.gov.cn/ GXHJXXPLQYD/frontal/index. html#/home/overview47 China Energy Guangtou Beihai Power Generation Co., Ltd. 48 China Energy Group Yongzhou Power Generation Co., Ltd. https://222.244.103.251:8181/ hnyfpl/frontal/index.html#/ home/index49 China Energy Group Yueyang Power Generation Co., Ltd. 50 China Energy Shenfu (Shishi) Power Generation Co., Ltd. http://220.160.52.213:10053/ idp-province/#/home51 China Energy Shenfu (Jinjiang) Thermal Power Co., Ltd. 52 China Energy Shenfu (Longyan) Power Generation Co., Ltd. 53 China Energy (Lianjiang) Gangdian Co., Ltd. 54 China Energy Shenhua Jiujiang Power Generation Co., Ltd. http://qyhjxxyfpl.sthjt.jiangxi. gov.cn:15004/information 55 China Energy Chongqing Wanzhou Electric Power Co., Ltd. http://183.66.66.47:10001/ eps/index/enterprise-search 56 China Energy Jiangyou Thermal Power Co., Ltd. https://103.203.219.138:8082/ eps/index/enterprise-search57 China Energy Sichuan Tianming Power Generation Co., Ltd. 58 China Energy Mengjin Thermal Power Co., Ltd. http://222.143.24.250:8247/ 59 China Energy Shouguang Power Generation Company Limited http://221.214.62.226:8090/ EnvironmentDisclosure/ 60 China Energy Hebei Dingzhou Power Generation Co., Ltd. http://121.29.48.71:8080/ 61 China Energy Hebei Cangdong Power Generation Co., Ltd. 62 Cangzhou Locomotive and Vehicle Maintenance Branch of China Energy Railway Equipment Co., Ltd. 63 Qinhuangdao Power Generation Co., Ltd. 64 China Energy (Tianjin) Dagang Power Plant Co., Ltd. https://hjxxpl.sthj.tj.gov. cn:10800/#/gkwz/jcym 65 China Energy Baoqing Coal Power & Chemical Co., Ltd. http://111.40.190.123:8082/ eps/index/enterprise-search
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China Shenhua Energy Company Limited 76 Section V Corporate Governance, Environment and Society (Continued) VII. DETAILS OF THE COMPANY ’S EFFORTS TO EXPAND POVERTY ALLEVIATION ACHIEVEMENTS AND RURAL REVITALISATION In the first half of 2026, the Group strictly implemented its annual rural revitalisation work plan, focusing on four targeted assistance counties, namely Wubu County and Mizhi County in Shaanxi Province, Butuo County in Sichuan Province, and Ningcheng County in the Inner Mongolia Autonomous Region, promoting the transition of its assistance work from a phased approach to a sustained mechanism. To ensure practical measures, solid projects, adequate funding and tangible outcomes, the Group strengthened industrial development and employment, enhanced endogenous driving forces, and improved rural development and governance. These efforts supported the four counties in creating a new landscape of high-quality development characterised by safeguarded livelihoods, distinctive industries, talent support, ecological improvement and stronger organisations, thereby contributing the strength of China Shenhua to building China into a strong agricultural country and advancing Chinese modernisation. In the first half of 2026, the Group contributed RMB80.07 million to assistance funds for four targeted counties. The Group implemented 40 assistance projects in key areas such as education, healthcare, industry, and infrastructure construction, benefiting over 10,000 people, and facilitated the purchase and sales of agricultural products amounting to approximately RMB4.10 million. Apart from the targeted counties, the Group also carried out 59 projects focusing on partnerships with local communities, rural revitalisation, and assistance offered to targeted regions, with a total investment of RMB44.06 million.
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2026 Interim Report 77 Section VI Significant Events I. PERFORMANCE OF COMMITMENTS Undertakings made by relevant parties such as the de facto controller, shareholders, related parties of the Company and their performance are as follows: 1. During the Reporting Period, no new significant undertakings were made by the relevant parties to the undertakings, including China Energy, the controlling shareholder of the Company, and its related parties such as Capital Holdings and Western Energy. For details of the undertakings, please refer to the section headed “Significant Events ” in the 2025 annual report of the Company. 2. During the Reporting Period, the Company completed the acquisition of equity interests in 12 target companies held in aggregate by China Energy and Western Energy by way of issuance of shares and payment in cash (the “Transaction ”), and completed the issuance of A Shares to specific subscribers to raise supporting funds (the “Issuance ”). From the date of the Company ’s initial disclosure of information related to the Transaction and the Issuance until the completion of the Transaction and the Issuance, neither China Energy nor Capital Holdings reduced its shareholdings in China Shenhua, and their undertakings not to reduce their shareholdings related to the Transaction and the Issuance have been fulfilled. II. APPROPRIATION OF FUNDS BY ITS CONTROLLING SHAREHOLDER AND OTHER RELATED PARTIES FOR NON-OPERATIONAL PURPOSES DURING THE REPORTING PERIOD ½ Applicable ✓ Not applicable III. ILLEGAL GUARANTEES ½ Applicable ✓ Not applicable IV. AUDIT OF THE INTERIM REPORT (I) Description of the Appointment and Removal of Auditors On 20 June 2025, the 2024 annual general meeting of the Company approved the appointment of KPMG Huazhen LLP and KPMG (collectively known as “KPMG”) as the Company’s auditors for A Shares and H Shares for the year of 2025, respectively, with their terms of appointment ending upon the conclusion of the 2025 annual general meeting of the Company. The Company convened the 2025 annual general meeting on 26 June 2026, upon the conclusion of which KPMG ’s term of appointment ended. On 23 July 2026, the second extraordinary general meeting of the Company for 2026 approved the appointment of Ernst & Young Hua Ming LLP and Ernst & Young as the PRC and international auditors of the Company for the year of 2026, respectively. (II) Change in Appointment of Auditors During the Audit Period ½ Applicable ✓ Not applicable (III) Explanation of the Company on the “Modified Audit Report ” Issued by Auditors ½ Applicable ✓ Not applicable
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China Shenhua Energy Company Limited 78 Section VI Significant Events (Continued) V. CHANGES IN AND TREATMENT OF MATTERS INVOLVED IN NON-STANDARD AUDIT OPINIONS ON THE ANNUAL REPORT OF LAST YEAR ½ Applicable ✓ Not applicable VI. INSOLVENCY OR RESTRUCTURING RELATED MATTERS ½ Applicable ✓ Not applicable VII. MATERIAL LITIGATION AND ARBITRATION During the Reporting Period, the Group did not have any material litigation or arbitration. As at the end of the Reporting Period, the Group was the plaintiff, the defendant or a party to certain non-material litigations and arbitrations. The management believes that any possible legal liability which may be incurred from such cases will not have any material impact on the financial position of the Group. VIII. SUSPECTED VIOLATIONS OF LAWS AND REGULATIONS, PENALTIES AND RECTIFICATION STATUS OF THE LISTED COMPANY AND ITS DIRECTORS, SENIOR MANAGEMENT, CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS ½ Applicable ✓ Not applicable IX. EXPLANATION ON THE INTEGRITY OF THE COMPANY AND ITS CONTROLLING SHAREHOLDER AND DE FACTO CONTROLLER DURING THE REPORTING PERIOD After enquiring the National Enterprise Credit Information Publicity System, during the Reporting Period, neither the Company nor China Energy, the controlling shareholder of the Company, was included in the list of enterprises with serious violation of the law and lacking in credibility. As at the end of the Reporting Period, the Company had no outstanding obligations determined under effective court rulings, nor were there any significant debts that had become due and remained unpaid. X. MATERIAL RELATED PARTY/CONNECTED TRANSACTIONS (I) Related Party/Connected Transactions During the Daily Operation The Company has a related party/connected transaction team under the direct supervision of the Chief Financial Officer, which is responsible for the management of related party/ connected transactions; and has established a business process, which properly delineates the responsibilities of the Company, its subsidiaries and branches in the management of related party/connected transactions. The Company has also established routine examinations, reporting and accountability systems in the subsidiaries and branches of the Company, to ensure that related party/connected transactions be conducted in accordance with the terms and conditions of framework agreements.
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2026 Interim Report 79 Section VI Significant Events (Continued) 1. Annual Caps for the Related Party/Connected Transactions During the Daily Operation in 2026 China Energy directly holds 69.97% equity interest in the Company, and it is the related party of the Company as defined under the Shanghai Listing Rules and the connected person of the Company as defined under the Hong Kong Listing Rules. On 16 June 2023, the Company ’s 2022 annual general meeting approved the 2024-2026 Mutual Coal Supply Agreement and the 2024-2026 Mutual Supplies and Services Agreement entered into with China Energy on 28 April 2023 and determined the annual transaction caps of each year from 2024 to 2026 for such related party/ connected transactions during the daily operation with the validity of the agreements from 1 January 2024 to 31 December 2026. Pursuant to the Mutual Coal Supply Agreement and the Mutual Supplies and Services Agreement, the Group and China Energy Group shall provide coal, supplies and services to each other. (For details, please refer to the Company ’s H share announcement on 28 April 2023 and the A share announcement on 29 April 2023, as well as the circular in relation to the general meeting on 17 May 2023.) Finance Company is 60% owned by China Energy, the controlling shareholder of the Company. Therefore, it is a related party of the Company as defined under the Shanghai Listing Rules and a connected person of the Company as defined under the Hong Kong Listing Rules. On 16 June 2023, the Company ’s 2022 annual general meeting approved the 2024-2026 Financial Services Agreement entered into between the Company and Finance Company on 28 April 2023 and determined the annual transaction caps of each year from 2024 to 2026 for such related party/ connected transactions during the daily operation with the validity period of the agreement from 1 January 2024 to 31 December 2026. Pursuant to the Financial Services Agreement, the Finance Company shall provide financial services approved by regulatory authorities within its business scope to members of the Group. (For details, please refer to the Company ’s H share announcement on 28 April 2023 and the A share announcement on 29 April 2023, as well as the circular in relation to the general meeting on 17 May 2023.)
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China Shenhua Energy Company Limited 80 Section VI Significant Events (Continued) Guoneng (Beijing) Commercial Factoring Co., Ltd. ( “Guoneng Factoring ”) is an indirect wholly-owned subsidiary of China Energy, the controlling shareholder of the Company. Accordingly, Guoneng Factoring is a related party of the Company as defined under the Shanghai Listing Rules and a connected person of the Company as defined under the Hong Kong Listing Rules. To satisfy the Group ’s continuing demand for factoring services, and considering the demand for factoring services from the relevant target assets held by China Energy, our controlling shareholder, and Western Energy to be acquired by the Company by way of issuance of A shares and cash payment, the fifteenth meeting of the sixth session of the Board of the Company, held on 19 December 2025, approved the 2026 Factoring Services Agreement entered into between the Company and Guoneng Factoring and the annual caps of 2026 daily connected transactions thereunder with the validity period from 1 January 2026 to 31 December 2026. Pursuant to the Factoring Services Agreement, Guoneng Factoring provides factoring services and other services related to factoring (including but not limited to providing consulting, agency, asset management, supply chain finance platform services, etc.) to the members of the Group. (Please refer to the Company ’s H share announcement on 19 December 2025 and the A share announcement on 20 December 2025.) China Railway Taiyuan Group Co., Ltd. ( “Taiyuan Railway Bureau ”) is the controlling shareholder of Daqin Railway Co., Ltd., which is a substantial shareholder of Shuohuang Railway, a significant subsidiary of the Company. China State Railway Group Co., Ltd. ( “China Railway ”) is the controlling shareholder of Taiyuan Railway Bureau. Therefore, China Railway constitutes a connected person of the Company as defined under the Hong Kong Listing Rules. On 24 October 2025, the fourteenth meeting of the sixth session of the Board of the Company approved the 2026-2028 Continuing Connected Transactions Framework Agreement between the Company and Taiyuan Railway Bureau which acts for and on behalf of China Railway and the annual caps of transactions thereunder effective from 1 January 2026 to 31 December 2028. On 27 November 2025, the Company entered into the 2026-2028 Continuing Connected Transactions Framework Agreement with Taiyuan Railway Bureau. Pursuant to the Continuing Connected Transactions Framework Agreement, the Group and China Railway and its subsidiaries have agreed to provide transportation service, supply coal and provide other products and services to each other. (For details, please refer to the Company ’s H share announcements on 24 October 2025 and 28 November 2025 and the A share announcements on 25 October 2025 and 29 November 2025.)
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2026 Interim Report 81 Section VI Significant Events (Continued) 2. Implementation of Each Agreement During the Reporting Period Set out below are the caps and implementation of major continuing related party/ connected transaction agreements disclosable during the Reporting Period. During the Reporting Period, the total amount of related party/connected transactions in relation to sales of products and provision of services by the Group to China Energy Group reached RMB46,114 million, accounting for 24.4% of the Group ’s revenue during the Reporting Period. Name of the agreement Provision of products and services by the Group to related parties/connected persons and other inflows Purchase of products and services from related parties/connected persons by the Group and other outflows Existing effective transaction cap Transaction amount during the Reporting Period Proportion in the same type of transactions Existing effective transaction cap Transaction amount during the Reporting Period Proportion in the same type of transactions RMB million RMB million % RMB million RMB million % (1) Mutual Coal Supply Agreement entered into between the Company and China Energy 110,000 37,262 33.8 27,000 12,443 41.8 (2) Mutual Supplies and Services Agreement entered into between the Company and China Energy 35,000 8,852 / 17,000 3,851 / Including: ǺProducts 1,705 2.7 1,035 4.8 ǻServices 7,147 45.5 2,816 16.5 (3) Continuing Connected Transactions Framework Agreement entered into between the Company and China Railway 12,000 1,659 1.4 25,000 5,482 9.0
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China Shenhua Energy Company Limited 82 Section VI Significant Events (Continued) Name of agreement Transaction item Prevailing transaction cap Transaction amount during the Reporting Period RMB million RMB million (4) Financial Services Agreement between the Company and Finance Company Ǻ Maximum daily balance of comprehensive credit provided by Finance Company to the members of the Group (including loans, credit loans, bill acceptance and discount, non-financing letter of guarantee, overdraft, letter of credit, etc., including relevant interest accrued thereon) 100,000 32,596 ǻ Maximum daily deposit balance of the members of the Group in Finance Company (including the accrued interest thereon) 75,000 71,748 Ǽ The total amount of agency fee, handling fee, consultation fee and other service fee charged by Finance Company for providing the members of the Group with financial services, including but not limited to consultation, agency, settlement, transfer, letter of credit, online banking, entrusted loan, non-financing letter of guarantee, bill acceptance and other services 300 2 (5) New Factoring Services Agreement between the Company and Guoneng Factoring Ǻ Maximum daily balance for providing factoring services by Guoneng Factoring to the members of the Group (including interests, factoring service fees and related financing fees) 10,000 9,857 ǻ Total service fees (including but not limited to consulting fee, agency fee, handling fee or other services fees) charged by Guoneng Factoring per annum for providing the members of the Group with other services related to factoring, including but not limited to providing consulting, agency, asset management, supply chain finance platform services and other services 20 0 The aforementioned continuing related party/connected transactions were conducted within the normal business scope of the Company, and the approval and disclosure procedures of independent directors and independent shareholders were strictly complied with.
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2026 Interim Report 83 Section VI Significant Events (Continued) (II) Related Party Transactions in Relation to Acquisition of Assets or Acquisition or Disposal of Equity Interests 1. Events Which Were Disclosed in Announcements Without Subsequent Progress or Changes (1) Summary of matters The following acquisitions of equity interests constituted major transactions and connected transactions under the Hong Kong Listing Rules. To further optimise the Group ’s full industrial chain layout, enhance operational capacity and resource reserves, strengthen core competitiveness, and effectively resolve intra-industry competition, on 15 August 2025, the Company entered into the Asset Purchase Agreement with the controlling shareholder of the Company, China Energy, and its wholly-owned subsidiary Western Energy, pursuant to which, the Company conditionally agreed to (i) acquire 100% equity interest in Guoyuan Power, 100% equity interest in Xinjiang Energy, 100% equity interest in Chemical Company, 100% equity interest in Wuhai Energy, 100% equity interest in Pingzhuang Coal, 41% equity interest in Shenyan Coal, 49% equity interest in Jinshen Energy, 100% equity interest in Baotou Mining, 100% equity interest in Shipping Company, 100% equity interest in Coal Trading Company, 100% equity interest in E-commerce Company and 100% equity interest in Port Company held by China Energy by way of issuance of A Shares ( “Consideration Shares ”) and payment in cash; and (ii) acquire 100% equity interest in Inner Mongolia Construction Investment held by Western Energy by way of payment in cash. On 19 December 2025, the Company entered into the Supplemental Asset Purchase Agreement with China Energy and Western Energy, pursuant to which (i) the scope of the target assets under the above acquisition was revised to exclude the 100% equity interest in E-commerce Company held by China Energy, while all other target assets remained unchanged; and (ii) certain terms of the above acquisition, including the transaction consideration and payment arrangements, were further amended and supplemented. Following the above amendments, the Company acquired the equity interests in the remaining 12 target companies by way of issuance of A Shares and payment in cash pursuant to the Asset Purchase Agreement and the Supplemental Asset Purchase Agreement (the “Transaction ”).
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China Shenhua Energy Company Limited 84 Section VI Significant Events (Continued) The transaction price payable by the Company to China Energy for the acquisition of 100% equity interest in Guoyuan Power, 100% equity interest in Xinjiang Energy, 100% equity interest in Chemical Company, 100% equity interest in Wuhai Energy, 100% equity interest in Pingzhuang Coal, 41% equity interest in Shenyan Coal, 49% equity interest in Jinshen Energy, 100% equity interest in Baotou Mining, 100% equity interest in Shipping Company, 100% equity interest in Coal Trading Company, and 100% equity interest in Port Company was settled by way of issuance of Consideration Shares and payment in cash. Accordingly, the Company paid RMB40,080 million by way of issuing Consideration Shares and RMB85,791 million in cash. The Company paid the transaction consideration of RMB7,728 million in cash for its acquisition of 100% equity interest in Inner Mongolia Construction Investment from Western Energy. Due to the Company ’s implementation of the 2025 interim profit distribution plan, pursuant to the agreements for the Transaction, the issue price of the Consideration Shares was adjusted from RMB30.38 per share to RMB29.40 per share on 19 December 2025. The number of Consideration Shares issued for the Transaction was 1,363,248,446 A Shares. Immediately prior to the completion of the Transaction, China Energy was the controlling shareholder of the Company, and Western Energy was a wholly- owned subsidiary of China Energy, and therefore an associate of China Energy. Accordingly, China Energy and Western Energy are connected persons of the Company. The Transaction constituted a connected transaction of the Company under the Hong Kong Listing Rules and was subject to the reporting, announcement, and independent shareholders ’ approval requirements under Chapter 14A of the Hong Kong Listing Rules. Pursuant to Rule 14.22 of the Hong Kong Listing Rules, where a series of transactions are conducted or completed within the same twelve-month period or are interrelated, such transactions shall be aggregated and treated as a single transaction. Having considered transactions of a similar nature conducted between the Company and its subsidiaries and China Energy and its associates within the twelve months preceding the date of signing of the agreement for the Transaction, and as one or more of the applicable percentage ratios taken on a combined basis were higher than 25% but lower than 100%, the Transaction constituted a major transaction of the Company and was subject to the reporting, announcement, and shareholders ’ approval requirements under Chapter 14 of the Hong Kong Listing Rules. The Company held its first extraordinary general meeting of 2026 on 23 January 2026, during which the relevant resolutions concerning the Transaction and the raising of supporting funds were duly passed.
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2026 Interim Report 85 Section VI Significant Events (Continued) On 16 March 2026, the registration procedures of the Consideration Shares were completed at the Shanghai Branch of China Securities Depository and Clearing Corporation Limited. In accordance with the terms of the Asset Purchase Agreement and the Supplemental Asset Purchase Agreement, the Company has completed the issuance of 1,363,248,446 Consideration Shares to China Energy at the issue price of RMB29.40 per share. Following the registration, the total number of Shares of the Company was 21,231,768,401. As at 17 March 2026, the registration of the transfer of the relevant equity interests in all 12 target companies involved in the Transaction to the Company had been completed, and the procedures for the transfer of the target assets involved in the Transaction had been completed. Upon completion of the Transaction, except for Jinshen Energy, the other 11 target companies became subsidiaries of the Company. For the purpose of paying the cash consideration for the Transaction and the merger and acquisition integration expenses, including intermediary fees and transaction taxes and fees, the Company issued A Shares to specific subscribers in the A-share market to raise supporting funds. For details, please refer to the relevant information under “(I) Overall Use of Proceeds ” under “XII. EXPLANATION ON PROGRESS OF USE OF RAISED FUNDS ” in this section. (2) Search index For the details of the Transaction, please refer to the H Share announcements, circular and 2025 annual report published by the Company on the website of the HKEx (www.hkexnews.hk) on 15 August 2025, 19 December 2025, 24 December 2025, 22 January 2026, 28 January 2026, 30 January 2026, 5 February 2026, 12 February 2026, 12 March 2026, 17 March 2026 and 30 March 2026, and the A Share announcements and 2025 annual report published by the Company on the website of the SSE (www.sse.com.cn) on 16 August 2025, 20 December 2025, 23 January 2026, 29 January 2026, 31 January 2026, 6 February 2026, 13 February 2026, 13 March 2026, 18 March 2026 and 31 March 2026.
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China Shenhua Energy Company Limited 86 Section VI Significant Events (Continued) 2. Events Which Were Disclosed in Announcements with Subsequent Progress or Changes ½ Applicable ✓ Not applicable 3. Where Performance Commitments are Involved, the Fulfilment of Such Performance Commitments during the Reporting Period Shall be Disclosed For details of the performance commitments made by China Energy in relation to the performance of Hangjin Energy, and the performance commitments made by China Energy and Western Energy in relation to the disposal of equity interests in 12 target companies, please refer to the section headed “Significant Events ” in the 2025 annual report of the Company. Such performance commitments have not yet reached their full commitment period. The Company will disclose the audited results achieved during the relevant commitment periods in its annual report in a timely manner. (III) Material Related Party Transactions Regarding Joint External Investments 1. Events Which Were Disclosed in Announcements Without Subsequent Progress or Changes Summary of matters Search index The capital increase in an aggregate amount of RMB15 billion by China Energy and the Company, by way of cash contributions in proportion to their respective shareholding ratios, to Finance Company, of which China Energy will contribute RMB9 billion and the Company will contribute RMB6 billion, with the entire amount to be credited to the registered capital of Finance Company (the “Capital Increase ”). In respect of the Capital Increase, on 25 June 2026, China Energy, the Company and Finance Company entered into the Capital Increase Agreement of China Energy Finance Co., Ltd. H Share announcements published by the Company on the website of the HKEx (www.hkexnews.hk) on 19 December 2025 and 25 June 2026. A Share announcements published by the Company on the website of the SSE (www.sse.com.cn) on 20 December 2025 and 26 June 2026. 2. Events Which Were Disclosed in Announcements with Subsequent Progress or Changes ½ Applicable ✓ Not applicable
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2026 Interim Report 87 Section VI Significant Events (Continued) 3. Events Which Were Not Disclosed in Announcements ½ Applicable ✓ Not applicable (IV) Debts and Liabilities Between Related Parties Unit: RMB million Related parties Related party relationship Funds provided to related parties Funds offered by related parties to the listed company Opening balance Amount incurred Closing balance Opening balance Amount incurred Closing balance China Energy Controlling shareholder – – – – 2,054 2,054 China Energy Group Guohua Power Co., Ltd. Subsidiary of the controlling shareholder – – – – 2,100 2,100 Finance Company Subsidiary of the controlling shareholder 41,247 28,953 70,200 12,905 14,625 27,530 Other related parties Other 395 (105) 290 189 (5) 184 Total 41,642 28,848 70,490 13,094 18,774 31,868 Reasons for debts and liabilities between related parties (1) The long-term and short-term borrowings provided by China Energy and its subsidiaries to the Group; (2) The Group ’s deposits in/loans with Finance Company; (3) The entrusted loans provided by the Group to the associates of the subsidiaries of the Company through banks. Internal decision-making procedures have been performed in respect of the above debts and liabilities between related parties in accordance with relevant regulations. Repayment of debts and liabilities between related parties Currently, the principal and interest of the above borrowings, entrusted loans, etc. are being repaid normally according to the repayment plan. Impacts of debts and liabilities between related parties on the operating results and financial position of the Group The above debts and liabilities are beneficial to the normal commencement of relevant project construction and production operation of the Group and have no material impact on the operating results and financial position of the Group.
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China Shenhua Energy Company Limited 88 Section VI Significant Events (Continued) (V) Related Party/Connected Transactions with Finance Company As at the end of the Reporting Period, the Company held 40% equity interest in Finance Company, and China Energy, the controlling shareholder of the Company, held 60% equity interest in Finance Company. Therefore, the financial services provided by Finance Company to the Group constituted related party/connected transactions of the Company. 1. Major Financial Indicators of Finance Company Unit The first half of 2026 (unaudited) The first half of 2025 (unaudited) Revenue RMB million 1,195 2,236 Total profit RMB million 1,547 2,311 Net profit RMB million 1,221 1,799 As at 30 June 2026 (unaudited) As at 31 December 2025 (audited) Total assets RMB million 214,720 210,926 Total liabilities RMB million 172,232 169,681 Owner’s equity RMB million 42,488 41,245 Note: The above financial data was prepared in accordance with China Accounting Standards for Business Enterprises.
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2026 Interim Report 89 Section VI Significant Events (Continued) 2. Major Risk Indicators of Finance Company No. Monitoring indicators Indicator requirement As at 30 June 2026 1 Capital adequacy ratio ≥10.5% 21.06% 2 Liquidity ratio ≥25% 81.46% 3 Loan balance/the sum of the deposit balance and the paid- in capital ≤80% 68.56% 4 Total external liabilities/net capital ≤100% 0.00% 5 Balance of bills acceptance/total assets ≤15% 3.44% 6 Balance of bills acceptance/balance of interbank deposits ≤300% 20.66% 7 Total amount of bills acceptance and rediscounting/net capital ≤100% 16.49% 8 Security deposits for bank acceptance bills/total deposits ≤10% 0.00% 9 Total amount of investment/net capital ≤70% 65.20% 10 Net amount of fixed assets/net capital ≤20% 0.01% All the above monitoring indicators of the Finance Company meet the regulatory requirements. 3. Deposit Business Unit: RMB million Related party Related party relationship Maximum daily deposit limit Deposit interest rate range Opening balance Amount for the period Closing balance Total amount deposited for the period Total amount withdrawn for the period Finance Company Subsidiary of the controlling shareholder 75,000 0.1%-2.75% 41,247 514,341 485,388 70,200 Total / / / 41,247 514,341 485,388 70,200 Note: “Maximum daily deposit limit ” refers to the maximum daily deposit balance (including accrued interest incurred) of the Group in Finance Company during the Reporting Period.
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China Shenhua Energy Company Limited 90 Section VI Significant Events (Continued) 4. Loan Business Unit: RMB million Related party Related party relationship Loan limit Loan interest rate range Opening balance Amount for the period Closing balance Total amount of loan for the period Total amount of repayment for the period Finance Company Subsidiary of the controlling shareholder 100,000 1.75%-3.30% 12,905 21,647 7,022 27,530 Total / / / 12,905 21,647 7,022 27,530 Note: “Loan limit ” refers to the maximum daily balance (including accrued interest incurred) of loans provided by Finance Company to the Group during the Reporting Period. 5. Credit Facilities or Other Financial Business Unit: RMB million Related party Related party relationship Business Type Limit Amount for the period Finance Company Subsidiary of the controlling shareholder Bill discount 100,000 141 Finance Company Subsidiary of the controlling shareholder Issue of acceptance bill 100,000 1,699 Finance Company Subsidiary of the controlling shareholder Intermediary business 300 2 Notes: (1) The amount for the period of bill discount and issue of acceptance bill business refers to accumulated amount of relevant services provided by Finance Company to the Group during the Reporting Period. (2) The amount for the period of intermediary business refers to accumulated amount of various service fees charged by Finance Company for provision of financial services to the Group. (VI) Other Major Related Party Transactions ½ Applicable ✓ Not applicable
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2026 Interim Report 91 Section VI Significant Events (Continued) XI. MATERIAL CONTRACTS AND THEIR PERFORMANCE (I) Trust, Contracting and Leasing ½ Applicable ✓ Not applicable (II) Major Guarantees Performed and Outstanding During the Reporting Period Unit: RMB million Guarantee provided by the Company to external parties (excluding the guarantee granted to its subsidiaries) Guarantor Relation between the guarantor and the listed company Guaranteed party Amount guaranteed Date of provision of guarantee (execution date of agreement) Beginning date of guarantee Expiry date of guarantee Type of guarantee Whether performance has been completed Whether guarantee is overdue Amount of guarantee overdue Whether counter guarantee is provided Whether guarantee is for the benefit of related parties Related party relationship Baorixile Energy Controlling subsidiary Hulunbei ’er Liangyi Railway Company Limited 33.67 2008.08.30 2008.08.30 2029.08.29 Joint and several liability guarantee No No 0 No No N/A Total amount of guarantee provided during the Reporting Period (excluding guarantee provided to its subsidiaries) 0 Total balance of guarantee at the end of the Reporting Period (A) (excluding guarantee provided to its subsidiaries) 33.67 Guarantee provided by the Company and its subsidiaries to its subsidiaries Total amount of guarantee provided to its subsidiaries during the Reporting Period 0 Total balance of guarantee provided to its subsidiaries at the end of the Reporting Period (B) 0 Total amount of guarantee (including guarantee provided to its subsidiaries) Total amount of guarantee (A+B) 33.67 Proportion of total amount of guarantee to the net assets attributable to shareholders of the Company under China Accounting Standards for Business Enterprises at the end of the Reporting Period (%) 0.007 Amount of guarantee provided to its shareholders, de facto controller and their related parties (C) 0 Amount of debt guarantee directly or indirectly provided to guaranteed parties with a gearing ratio in excess of 70% (D) 33.67 Portion of the total amount of guarantee in excess of 50% of net assets (E) 0 Aggregated amount of the above three amounts of guarantee (C+D+E) 33.67 Description of the potential joint and several repayment liability for outstanding guarantee Please see below Description of guarantee Please see below Note: The balance of guarantee provided by the subsidiary to external parties of the total amount of guarantee at the end of the Reporting Period equals to the amount of external guarantee of the subsidiary multiplied by the shareholding of the Company in the subsidiary. As at the end of the Reporting Period, the total balance of guarantee provided by the Group amounted to RMB33.67 million, which was mainly the guarantee provided by Baorixile Energy, a subsidiary of which the Company owns 56.61% equity interest, to external parties.
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China Shenhua Energy Company Limited 92 Section VI Significant Events (Continued) Prior to the acquisition of Baorixile Energy by the Company in 2011 and pursuant to the Guarantee Agreement on the Syndicated Renminbi Loan for the Cooperative Railway Project Connecting Yimin and Yiershi Newly Constructed by Hulunbei ’er Liangyi Railway Company Limited, in 2008, Baorixile Energy, as one of the guarantors, provided joint and several liability guarantee to Hulunbei ’er Liangyi Railway Company Limited (hereinafter referred to as the “Liangyi Railway Company ”, of which Baorixile Energy owns 14.22% equity interest) for the syndicated loans. The major liability guaranteed was the debts due to the lender with a maximum balance of RMB207.47 million from 2008 to 2027, regardless of whether the debt is due when the above period expires. The above syndicated loans will fall due by tranches between 2011 and 2026. The guarantee agreement provides that the guarantee period of the debts borne by the guarantor shall be calculated from the due date of each tranche to two years after the due date of the last tranche, i.e. 2029. Given that Liangyi Railway Company failed to pay the loan interest on time due to its deteriorating business operation, as resolved by the shareholders ’ general meeting of Liangyi Railway Company, additional capital was injected into Liangyi Railway Company by its shareholders (including Baorixile Energy). Baorixile Energy has cumulatively injected additional capital of RMB11.82 million into Liangyi Railway Company. As at the end of the Reporting Period, Baorixile Energy, in proportion to its shareholding, repaid the principal on the loans on behalf of Liangyi Railway Company amounting to a total of RMB144.33 million. Baorixile Energy already made full provision for impairment on its 14.22% equity interests in Liangyi Railway Company and the repayment amount paid on its behalf. Together with other shareholders, Baorixile Energy will continue to call for improvement of business operation of Liangyi Railway Company. As at 30 June 2026, Liangyi Railway Company had a gearing ratio of 217.5%. (III) Entrusted Cash Asset Management 1. Status of Entrusted Wealth Management (1) General status of entrusted wealth management Unit: RMB million Type of products Source of funds Risk characteristics Amount incurred for the Reporting Period Closing Balance undue as at the end of the Reporting Period Unrecovered amount overdue Structured deposits Self-owned funds Principal and minimum income guaranteed 13,900 6,700 0 Note: Amount incurred for the Reporting Period refers to the daily maximum principal balance of such entrusted wealth management of the Group during the Reporting Period.
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2026 Interim Report 93 Section VI Significant Events (Continued) (2) Individual entrusted wealth management At the end of the Reporting Period, the entrusted wealth management products held by the Company were as follows: Unit: RMB million No. Trustor Trustee Types of entrusted wealth management products Amount of entrusted wealth management Initial date of entrusted wealth management Expiry date of entrusted wealth management Source of funds Investment of funds Existence of restricted return Basis for determining return Annualised rate of return Actual return for the Reporting Period Outstanding amount Unrecovered amount overdue Whether it has been through legal procedures 1 China Shenhua China CITIC Bank Corporation Limited Structured deposits 700 2026.06.25 2026.07.09 Own funds GBP/USD FX spot rate No GBP/USD price at 3:00 p.m. (Tokyo time) as shown on the screen on the Bloomberg page “BFIX” / 0 700 0 Yes 2 China Shenhua Shanghai Pudong Development Bank Co., Ltd. Structured Deposits 1,000 2026.06.24 2026.07.08 Own funds EUR/USD FX rate No Fixing price of peg currencies as shown on Bloomberg page “BFIX” / 0 1,000 0 Yes 3 China Shenhua Industrial Bank Co., Ltd. Structured Deposits 1,000 2026.06.26 2026.07.13 Own funds Gold No Morning benchmark price of Shanghai Gold quoted on the Shanghai Gold Exchange / 0 1,000 0 Yes 4 China Shenhua Ping An Bank Co., Ltd. Structured Deposits 1,000 2026.06.25 2026.07.09 Own funds EUR/GBP FX rate No Middle price of peg currencies as shown on Bloomberg page “BFIX” / 0 1,000 0 Yes 5 China Shenhua Bank of Shanghai Co., Ltd. Structured Deposits 2,000 2026.06.30 2026.07.13 Own funds Gold denominated in USD No Fixing price of peg currencies as shown on Bloomberg page “BFIX” / 0 2,000 0 Yes 6 China Shenhua Huaxia Bank Co., Ltd. Structured Deposits 1,000 2026.06.26 2026.07.10 Own funds CSI 10y Liquid CGB Index No Actual number of days in product return calculation period multiplied by annualized rate of return divided by 365 / 0 1,000 0 Yes During the Reporting Period, in order to improve fund allocation efficiency and fund deposit income, to the extent authorised by the Board of the Company, self-owned funds were used to purchase structured deposits of banks in a timely manner, such structured deposits have relatively low risks and better liquidity (with a maximum maturity of not more than 3 months), and there has been no failure to redeem such products or recover the principal upon maturity. For the wealth management products purchased by the Company in the first half of 2026 which matured in the Reporting Period, the Company recovered all the principal upon maturity, and realised an aggregate return of RMB6.958 million.
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China Shenhua Energy Company Limited 94 Section VI Significant Events (Continued) 2. Entrusted Loans (1) General status of entrusted loans Unit: RMB million Type of products Source of funds Amount incurred for the Reporting Period Outstanding balance as at the end of the Reporting Period Unrecovered amount overdue Entrusted loans Self-owned funds 395.37 0 290.00 Note: Amount incurred for the Reporting Period refers to the daily maximum principal balance of such entrusted loans of the Group during the Reporting Period. (2) Individual entrusted loans Unit: RMB million Name of borrower Relationship between the borrower and the Group Trustee Amount of entrusted loans Initial date of loans Expiry date of loans Duration of loans Source of funds Investment of funds Determination of compensation Loan interest rate Actual return for the Reporting Period Principal and interest recovered for the Reporting Period Whether it has been through legal procedures Elion Chemical Investee company Bank of China 400.0 2020/12/24 2023/12/23 3 years Self-owned funds Replacement of loans Interest to be paid quarterly 4.75% 38.45 Recovered principal of RMB105.36 million and recovered interest of RMB38.45 million Yes The entrusted loan of RMB400.0 million provided to Elion Chemical Industry Co., Ltd. ( “Elion Chemical ”) by Shendong Power, a wholly-owned subsidiary of the Company, matured on 23 December 2023. As at the end of the Reporting Period, Elion Chemical has repaid the principal of RMB110 million. For the remaining amount of the entrusted loan, Elion Chemical has implemented corresponding guarantee measures through asset mortgages and other means. Both parties are actively negotiating the subsequent matters of the remaining entrusted loan. The entrusted loan will not have a significant effect on the financial position of the Group. The Group has not made any provision for impairment for such entrusted loan.
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2026 Interim Report 95 Section VI Significant Events (Continued) As at 30 June 2026, the Group had no entrusted loans granted to any single party exceeding 5% of the Group ’s latest audited net assets attributable to equity holders of the Company. The Company did not utilise the proceeds raised to grant entrusted loans, and there was no entrusted loan involved in litigation. Under centralised capital management of the Group, the entrusted loans between the Company and its subsidiaries were used for meeting operating and development needs. Such entrusted loans have been eliminated in the consolidated financial statements of the Group. XII. EXPLANATION ON PROGRESS OF USE OF RAISED FUNDS (I) Overall Use of Proceeds During the first half of 2026, the Company completed the acquisition of equity interests in 12 target companies held in aggregate by China Energy, its controlling shareholder, and Western Energy, a wholly-owned subsidiary of China Energy, by way of issuance of shares and payment in cash (the “Transaction ”). To finance the cash consideration, intermediary fees, related taxes and other expenses for the Transaction, the Company raised supporting funds through a private placement of A Shares to 13 specific subscribers in the A-share market. A total of 457,665,903 A Shares were issued (with a par value of RMB1.00 each and an aggregate par value of RMB457,665,903) at an issue price of RMB43.70 per Share and a net price of RMB43.63 per share (the “Issuance ”). The gross proceeds from the Issuance amounted to RMB19,999,999,961.10. After deducting the underwriting fee of RMB32,075,471.63 and other fees of RMB431,760.28 (exclusive of VAT), the raised net supporting proceeds amounted to RMB19,967,492,729.19. The issue price was determined on 24 March 2026, on which date the closing price of the Company ’s H Shares on the HKEx was HK$47.50 per share. According to the Certificate of Securities Registration Change ( ) issued by the Shanghai Branch of China Securities Depository and Clearing Corporation Limited on 7 April 2026, the Company completed the registration of the 457,665,903 newly issued A Shares under the Issuance. Upon completion of the registration, the total number of shares of the Company was 21,689,434,304. The Issuance was made to 13 third-party institutional and individual investors independent of the Company and its related parties/connected persons, including insurance asset management institutions, public fund managers, state-owned investment funds, qualified foreign institutional investors and other professional investors.
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China Shenhua Energy Company Limited 96 Section VI Significant Events (Continued) As at 30 June 2026, 100% of the net proceeds from the Issuance had been applied to finance the cash consideration, intermediary fees, related taxes and other expenses for the Transaction, and the unutilised proceeds were RMB0. The actual use of the proceeds from the Issuance was consistent with the intended use of proceeds previously disclosed by the Company, and there had been no material change in, or material delay to, the use of the proceeds. For the details of the Issuance, please refer to the H Share announcements published by the Company on the website of the HKEx (www.hkexnews.hk) on 30 March 2026 and 8 April 2026, and the A Share announcements by the Company on the website of the SSE (www.sse.com.cn) on 31 March 2026 and 9 April 2026. Unit: RMB million Source of proceeds Timeline of proceeds Total amount of proceeds Net amount of proceeds (1) Total amount of committed investment in the prospectus or offering documents (2) Total over-raised proceeds (3) = (1) – (2) Cumulative amount of proceeds invested as at the end of the Reporting Period (4) Including: cumulative amount of over-raised proceeds invested as at the end of the Reporting Period (5) Cumulative investment progress of proceeds as at the end of the Reporting Period (%) (6) = (4)/(1) Cumulative investment progress of over-raised proceeds as at the end of the Reporting Period (%) (7) = (5)/(3) Amount invested in current year (8) Proportion of amount invested in current year (%) (9) = (8)/(1) Total amount of proceeds with changed use Issuance of shares to targeted subscribers 2026/3/30 20,000 19,967.49 19,967.49 0 19,967.49 0 100 N/A 19,967.49 100 N/A Total / 20,000 19,967.49 19,967.49 0 19,967.49 0 / / 19,967.49 / N/A (II) Details of Fundraising Projects 1. Details of Use of Fundraising Projects Unit: RMB million Source of proceeds Project name Project nature Whether it is a committed investment project in the prospectus or offering documents Whether it involves a change in use of proceeds Planned total amount of proceeds invested (1) Amount invested in current year Cumulative amount of proceeds invested as at the end of the Reporting Period (2) Cumulative investment progress as at the end of the Reporting Period (%) (3) = (2)/(1) Date when the project reaches the expected usable state Whether the project has been completed Whether the investment progress is in line with the planned progress Specific reasons for the investment progress not as planned Benefits achieved in current year Benefits or R & D results achieved by the project Whether there have been significant changes in project feasibility Surplus amount Issuance of shares to targeted subscribers Payment of the cash consideration, intermediary fees and relevant taxes and charges of the Transaction Other Yes No 19,967.49 19,967.49 19,967.49 100 N/A Yes Yes N/A N/A N/A N/A 0 Total / / / / 19,967.49 19,967.49 19,967.49 / / / / / N/A / / 0
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2026 Interim Report 97 Section VI Significant Events (Continued) 2. Details of the Use of Excess Proceeds ½ Applicable ✓ Not applicable 3. Details of the Re-evaluation of the Fundraising Projects During the Reporting Period ½ Applicable ✓ Not applicable (III) Changes to or Termination of Fundraising Projects During the Reporting Period ½ Applicable ✓ Not applicable (IV) Other Matters on the Use of Proceeds During the Reporting Period On 30 March 2026, the Company held the 17th meeting of the sixth session of the Board, at which the “Resolution on the Use of Proceeds to Replace the Self-raised Funds Pre- invested ” was considered and approved, approving the Company ’s use of proceeds to replace the self-raised funds that have been invested in the fundraising investment projects (the “Fundraising Projects ”). The independent financial adviser issued a verification opinion with no objection. In order to ensure the smooth progress of the Fundraising Projects, prior to the receipt of the proceeds, the Company made pre-investments by using self- raised funds in the Fundraising Projects based on their actual progress. As of 29 March 2026, the Company had used self-raised funds to pay in advance a cash consideration of RMB83,500.00 million to China Energy and Western Energy, which exceeded the net proceeds of RMB19,967.4927 million, with details as follows: No. Project name Proposed amount of proceeds to be invested Pre-invested amount of self-raised funds RMB ten thousand RMB ten thousand 1 Payment of cash consideration, intermediary fees, related taxes and other expenses for the Transaction 1,996,749.27 8,350,000.00 Total 1,996,749.27 8,350,000.00
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China Shenhua Energy Company Limited 98 Section VII Changes in Shares and Particulars of Shareholders I. CHANGES IN SHARE CAPITAL (I) Changes in the Number of Shares 1. Changes in the Number of Shares Unit: share Before change Changes in After change Number Percentage Issue of new shares Number Percentage % % I. Shares subject to selling restrictions – – 1,820,914,349 1,820,914,349 8.40 1. State-owned shares – – – – – 2. Shares held by state-owned legal persons – – 1,409,015,036 1,409,015,036 6.50 3. Other domestically owned shares – – 391,075,515 391,075,515 1.80 Including: Shares held by domestic non-state-owned legal persons – – 377,803,204 377,803,204 1.74 Shares held by domestic natural persons – – 13,272,311 13,272,311 0.06 4. Foreign-held shares – – 20,823,798 20,823,798 0.10 Including: Shares held by overseas legal persons – – 20,823,798 20,823,798 0.10 Shares held by overseas natural persons – – – – – II. Tradable shares not subject to selling restrictions 19,868,519,955 100.00 – 19,868,519,955 91.60 1. RMB-denominated ordinary shares 16,491,037,955 83.00 – 16,491,037,955 76.03 2. Domestic listed foreign shares – – – – 3. Overseas listed foreign shares 3,377,482,000 17.00 – 3,377,482,000 15.57 4. Others – – – – III. Total number of shares 19,868,519,955 100.00 1,820,914,349 21,689,434,304 100.00
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2026 Interim Report 99 Section VII Changes in Shares and Particulars of Shareholders (Continued) During the six months ended 30 June 2026, the Group did not purchase, sell or redeem any of the Company ’s listed securities (including sale of treasury shares) as defined under the Hong Kong Listing Rules. As at 30 June 2026, the Company did not hold any treasury shares. As at the disclosure date of this report, so far as the Company ’s Directors are aware, the Company has satisfied the minimum public float requirement under the Hong Kong Listing Rules. 2. Explanations of Changes in Shares During the Reporting Period, the Company acquired equity interests in 12 target companies held by its controlling shareholder, China Energy, and its wholly-owned subsidiary, Western Energy, by issuing shares and payment in cash, and raised supporting funds. Among them, the Company issued 1,363,248,446 A Shares to China Energy on a non-public issue basis, and completed the registration procedures with Shanghai Branch of China Securities Depository and Clearing Corporation Limited for the newly issued shares on 16 March 2026. The lock-up period is 36 months from the date of completion of the share issuance. The Company issued A Shares to specific investors to raise supporting funds, with 457,665,903 A Shares newly issued, and completed the registration procedures with Shanghai Branch of China Securities Depository and Clearing Corporation Limited on 7 April 2026. The lock-up period is 6 months from the date of completion of the share issuance. 3. Impacts of Changes in Shares on Earnings Per Share, Net Assets Per Share and Other Financial Indicators after the Reporting Period and Prior to the Disclosure Date of the Interim Report ½ Applicable ✔ Not applicable 4. Other Contents to be Disclosed as Deemed Necessary by the Company or Required by Securities Regulatory Authorities ½ Applicable ✔ Not applicable
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China Shenhua Energy Company Limited 100 Section VII Changes in Shares and Particulars of Shareholders (Continued) (II) Changes in Shares Subject to Selling Restrictions Unit: share Name of shareholder The number of restricted shares at the beginning of the period Number of restricted shares unlocked during the Reporting Period Number of restricted shares increased during the Reporting Period Number of restricted shares at the end of the Reporting Period Reasons for the restriction Date of unlocking the restricted shares China Energy Investment Corporation Limited (ঐ๕ҳ༟ණྠ பʮ̡) – – 1,363,248,446 1,363,248,446 The Company issued shares to it for the acquisition of assets 16 March 2029 Taiping Asset Management Co., Ltd. (˄̻༟ପ၍ଣ ʮ̡) – – 94,956,525 94,956,525 The Company issued shares to it to raise supporting funds 7 October 2026 China Life Asset Management Company Limited (ʕɛྪ༟ପ၍ଣ ʮ̡) – – 91,533,180 91,533,180 7 October 2026 E Fund Management Co., Ltd. (၍ଣ ʮ̡) – – 61,556,064 61,556,064 7 October 2026 Caitong Fund Management Co., Ltd. (၍ଣ ʮ̡) – – 41,647,597 41,647,597 7 October 2026 Nuode Asset Management Co., Ltd. (၍ଣ ʮ̡) – – 28,384,439 28,384,439 7 October 2026 China State-owned Enterprises Mixed Ownership Reform Fund Co., Ltd. (ʕϞΆุ ږ ʮ̡) – – 22,883,295 22,883,295 7 October 2026 China CITIC Financial Asset Management Co., Ltd. (ፄ༟ପ၍ଣ ʮ̡) – – 22,883,295 22,883,295 7 October 2026 UBS AG – – 20,823,798 20,823,798 7 October 2026
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2026 Interim Report 101 Section VII Changes in Shares and Particulars of Shareholders (Continued) Name of shareholder The number of restricted shares at the beginning of the period Number of restricted shares unlocked during the Reporting Period Number of restricted shares increased during the Reporting Period Number of restricted shares at the end of the Reporting Period Reasons for the restriction Date of unlocking the restricted shares China Structural Reform Fund Phase II Coordinated Development Fund Co., Ltd. (ሜɚಂΝ ʮ̡) – – 18,306,636 18,306,636 7 October 2026 Guotai Asset Management Co., Ltd. (၍ଣ ʮ̡) – – 14,416,475 14,416,475 7 October 2026 Nice Zhejiang Investment Co., Ltd. (ॶฌएϪҳ༟ ʮ̡) – – 13,729,977 13,729,977 7 October 2026 Beijing Guangyao Kinetic Energy Equity Investment Fund Co., Ltd. (̏ԯΈᓚ ʮ̡) – – 13,272,311 13,272,311 7 October 2026 Zhong Ge (ࠧ13,272,311 13,272,311 7 October 2026 Total – – 1,820,914,349 1,820,914,349 / /
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China Shenhua Energy Company Limited 102 Section VII Changes in Shares and Particulars of Shareholders (Continued) II. NUMBER OF SHAREHOLDERS AND SHAREHOLDING (I) Total Number of Shareholders Total number of shareholders of ordinary shares as at the end of the Reporting Period (accounts) 233,355 Including: Holders of A Shares (including China Energy) (accounts) 231,730 Registered holders of H Shares (accounts) 1,625 (II) Shareholdings of Top Ten Shareholders and Top Ten Holders of Tradable Shares (or Shareholders Without Selling Restrictions) as at the End of the Reporting Period Unit: share Shareholdings of top ten shareholders (excluding lending of shares by way of refinancing) Name of shareholders (Full name) Increase/ decrease during the Reporting Period Number of shares held at the end of the Reporting Period Percentage Number of shares with selling restrictions Shares subject to pledge, marking or freeze Nature of shareholdersStatus Number % China Energy Investment Corporation Limited (ঐ๕ பʮ̡) +1,363,248,446 15,175,957,642 69.97 1,363,248,446 Nil 0 State-owned legal person HKSCC NOMINEES LIMITED +510,460 3,370,652,088 15.54 0 Unknown 0 Overseas legal person China Securities Finance Corporation Limited (ʕᗇՎ ʮ̡) -158,030,099 436,687,905 2.01 0 Nil 0 Others China Life Insurance Company Limited – Traditional – General Insurance Products – 005L – CT001 Shanghai (ᎈ ᎈ Ñ005LÑ CT001 လ) +183,981,857 251,481,395 1.16 87,871,853 Nil 0 Others China Reform Investment Co., Ltd. (ʮ̡) +98,695,597 190,842,454 0.88 0 Nil 0 State-owned legal person Taiping Life Insurance Company Limited – Traditional-General Insurance Products – 022L- CT001 Shanghai (ᎈ ۜ Ñ022L-CT001 လ) +102,711,709 114,321,009 0.53 94,956,525 Nil 0 Others
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2026 Interim Report 103 Section VII Changes in Shares and Particulars of Shareholders (Continued) Shareholdings of top ten shareholders (excluding lending of shares by way of refinancing) Name of shareholders (Full name) Increase/ decrease during the Reporting Period Number of shares held at the end of the Reporting Period Percentage Number of shares with selling restrictions Shares subject to pledge, marking or freeze Nature of shareholdersStatus Number % Guoxin Hongsheng Investment (Beijing) Co., Ltd. (อ҃ସ ҳ༟(̏ԯ)ʮ̡) +69,934,419 114,264,767 0.53 0 Nil 0 Others Hong Kong Securities Clearing Company Limited -19,250,990 83,486,775 0.38 0 Nil 0 Overseas legal person Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. – Honghu Zhiyuan (Shanghai) Private Investment Fund Co., Ltd. (ᔮጳശ( ̏ԯ)ږ ʮ̡ÑᒿᕱқჃ( ɪऎ) ʮ̡) 0 55,987,298 0.26 0 Nil 0 Others Taiping Life Insurance Company Limited (ࠢ ʮ̡) +9,745,407 55,031,845 0.25 0 Nil 0 State-owned legal person
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China Shenhua Energy Company Limited 104 Section VII Changes in Shares and Particulars of Shareholders (Continued) Shareholdings of top ten shareholders without selling restrictions (excluding lending of shares by way of refinancing and locked-up shares held by senior management) Name of shareholders Number of tradable shares held without selling restrictions Type and number of shares Type Number China Energy Investment Corporation Limited (பʮ̡) 13,812,709,196 RMB ordinary shares 13,812,709,196 HKSCC NOMINEES LIMITED 3,370,652,088 Overseas listed foreign shares 3,370,652,088 China Securities Finance Corporation Limited (ʮ̡) 436,687,905 RMB ordinary shares 436,687,905 China Reform Investment Co., Ltd. (ʮ̡) 190,842,454 RMB ordinary shares 190,842,454 China Life Insurance Company Limited – Traditional – General Insurance Products – 005L-CT001 Shanghai (ࠢ Ñ005LÑ CT001 လ) 163,609,542 RMB ordinary shares 163,609,542 Guoxin Hongsheng Investment (Beijing) Co., Ltd. ( อ҃ସҳ༟( ̏ԯ)ʮ̡) 114,264,767 RMB ordinary shares 114,264,767 Hong Kong Securities Clearing Company Limited 83,486,775 RMB ordinary shares 83,486,775 Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. – Honghu Zhiyuan (Shanghai) Private Investment Fund Co., Ltd. ( ᔮጳശ( ̏ԯ)ʮ̡ÑᒿᕱқჃ( ɪऎ)ږ ʮ̡) 55,987,298 RMB ordinary shares 55,987,298 Taiping Life Insurance Company Limited (ʮ̡) 55,031,845 RMB ordinary shares 55,031,845 Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. - Guofeng Xinghua Honghu Zhiyuan Private Securities Investment Fund II (ᔮጳശ( ̏ԯ)ʮ̡ÑᔮጳശᒿᕱқჃɚಂ ږ) 52,206,131 RMB ordinary shares 52,206,131 Description of the special repurchase accounts of the top ten shareholders N/A Description of the abovementioned shareholders ’ proxy voting rights, entrusted voting rights and waiver of voting rights N/A
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2026 Interim Report 105 Section VII Changes in Shares and Particulars of Shareholders (Continued) Shareholdings of top ten shareholders without selling restrictions (excluding lending of shares by way of refinancing and locked-up shares held by senior management) Name of shareholders Number of tradable shares held without selling restrictions Type and number of shares Type Number Description of the related party relationships among the abovementioned shareholders or whether they are parties acting in concert Both HKSCC NOMINEES LIMITED and Hong Kong Securities Clearing Company Limited are wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited; the de facto controller of both China Reform Investment Co., Ltd. (ʮ̡) and Guoxin Hongsheng Investment (Beijing) Co., Ltd. (อ҃ସҳ༟( ̏ԯ)ʮ̡) is China Reform Holdings Corporation Limited. (பʮ̡); Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. ( ᔮጳശ( ̏ԯ)ʮ̡) acts as the private fund manager for both Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. – Honghu Zhiyuan (Shanghai) Private Investment Fund Co., Ltd. ( ᔮጳശ( ̏ԯ)ʮ̡ÑᒿᕱқჃ( ɪऎ)ʮ ̡) and Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd. - Guofeng Xinghua Honghu Zhiyuan Private Securities Investment Fund II (ᔮጳശ( ̏ԯ)ʮ̡ÑᔮጳശᒿᕱқჃɚಂӷ ږSave as disclosed above, the Company is not aware of any related party relationships between the top ten shareholders without selling restrictions and the top ten shareholders, and whether they are parties acting in concert as defined in the Measures for Administration of Acquisition of Listed Companies (ج.) Description of the holders of preference shares with voting rights restored and the number of shares held N/A Notes: 1. The H Shares held by HKSCC NOMINEES LIMITED are held on behalf of a number of its clients, and the A Shares held by Hong Kong Securities Clearing Company Limited are held on behalf of a number of its clients. 2. As at the end of the Reporting Period, the controlling shareholder of the Company, China Energy, in addition to its direct shareholding, held 11,593,528 A Shares of the Company through its wholly-owned subsidiary, Capital Holdings. China Energy directly and indirectly held a total of 15,187,551,170 A Shares of the Company, representing 70.02% of the total number of issued shares of the Company. (III) Participation in Lending of Shares by way of Securities Lending and Refinancing by the Shareholders holding more than 5% of the Share Capital, the Top Ten Shareholders and the Top Ten Holders of Tradable Shares without Selling Restrictions ½ Applicable ✔ Not applicable
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China Shenhua Energy Company Limited 106 Section VII Changes in Shares and Particulars of Shareholders (Continued) (IV) Number of Shares Held by Top Ten Shareholders with Selling Restrictions and Their Selling Restrictions Unit: Share No. Name of shareholder with selling restrictions Number of shares held subject to selling restrictions Listing and trading of shares with selling restrictions Date on which the shares may become tradable Number of additional shares becoming tradable Selling restrictions 1 China Energy Investment Corporation Limited (ঐ๕ பʮ̡) 1,363,248,446 16 March 2029 1,363,248,446 The Company acquired the equity interests in 12 target companies collectively held by China Energy and Western Energy through the issuance of shares and payment of cash (the “Transaction ”). The shares were A Shares issued to China Energy as consideration for the Transaction and may not be transferred within 36 months from the date of completion of the share issuance. If the number of such shares increases as a result of the Company ’s bonus issue, capitalisation issue or rights issue, the additional shares of the Company are subject to the same lock-up period as the original shares. However, transfers permitted under applicable laws, regulations and regulatory documents are not subject to this restriction. If, within six months after completion of the Transaction, the closing price of the Company ’s shares is lower than the issue price for 20 consecutive trading days, or if the closing price at the end of the six-month period following completion of the Transaction is lower than the issue price, the lock-up period applicable to such shares held by China Energy shall be automatically extended by six months.
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2026 Interim Report 107 Section VII Changes in Shares and Particulars of Shareholders (Continued) No. Name of shareholder with selling restrictions Number of shares held subject to selling restrictions Listing and trading of shares with selling restrictions Date on which the shares may become tradable Number of additional shares becoming tradable Selling restrictions 2 Taiping Asset Management Co., Ltd. (ʮ̡) 94,956,525 7 October 2026 94,956,525 The shares were A Shares issued by the Company to specific investors to raise supporting funds and may not be transferred within six months from the date of completion of the share issuance. From the completion of the share issuance until the expiry of the lock-up period, any additional shares of the Company issued as a result of the circumstances such as distribution of stock dividends or capitalisation of capital reserves shall also be subject to the aforementioned lock- up arrangement. 3 China Life Asset Management Company Limited (ʕɛྪ༟ପ ʮ̡) 91,533,180 7 October 2026 91,533,180 4 E Fund Management Co., Ltd. (ʮ̡) 61,556,064 7 October 2026 61,556,064 5 Caitong Fund Management Co., Ltd. (ʮ̡) 41,647,597 7 October 2026 41,647,597 6 Nuode Asset Management Co., Ltd. (ʮ̡) 28,384,439 7 October 2026 28,384,439 7 China State-owned Enterprises Mixed Ownership Reform Fund Co., Ltd. (ה ʮ̡) 22,883,295 7 October 2026 22,883,295 8 China CITIC Financial Asset Management Co., Ltd. (ڦ ʮ̡) 22,883,295 7 October 2026 22,883,295 9 UBS AG 20,823,798 7 October 2026 20,823,798 10 Guodiao Phase II Collaborative Development Fund Co., Ltd. (΅ ʮ̡) 18,306,636 7 October 2026 18,306,636 Description of the related party relationships among the abovementioned shareholders or whether they are parties acting in concert China State-owned Enterprises Mixed Ownership Reform Fund Co., Ltd. and Guodiao Phase II Collaborative Development Fund Co., Ltd. have Chengtong Shenggai Private Equity Fund Management Co., Ltd. (ʮ̡) and Chengtong Fund Management Co., Ltd. (ʮ̡) respectively serving as their private equity fund managers, and the de facto controller of both private equity fund managers is China Chengtong Holdings Group Limited. Save as disclosed above, the Company is not aware of any related party relationships among the top ten shareholders with selling restrictions, and whether they are parties acting in concert as defined in the Measures for Administration of Acquisition of Listed Companies (ج.)
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China Shenhua Energy Company Limited 108 Section VII Changes in Shares and Particulars of Shareholders (Continued) (V) Strategic Investors or General Legal Persons Becoming Top Ten Shareholders as a Result of New Share Placing Name of strategic investors or general legal persons Agreed commencement date of shareholding Agreed expiry date of shareholding Taiping Life Insurance Company Limited – Traditional-General Insurance Products-022L-CT001 Shanghai 7 April 2026 7 October 2026 Explanation on agreed timeframe of shareholding for participation in placement of new shares by strategic investors or general legal persons The shares of the Company subscribed for by the target subscribers under the issuance of shares to raise supporting funds shall not be transferred within 6 months from the date of completion of the issuance (VI) Substantial Shareholders ’ Interests and Short Positions in the Shares of the Company As at 30 June 2026, according to the register of interests and/or short positions in the shares which was required to be kept under section 336 of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), persons set out in the table below had an interest and/or short position in the shares or underlying shares of the Company: No. Name of shareholder Capacity H Shares/ A Shares Nature of interest Number of H Shares/ A Shares held Percentage of H Shares/ A Shares held in the total issued H Shares/ A Shares of the Company, respectively Percentage of total issued shares of the Company share % % 1 China Energy Beneficial owner A Shares Long position 15,175,957,642 82.87 69.97 Interest of corporation controlled by the substantial shareholder (Note) A Shares Long position 11,593,528 0.06 0.05 2 BlackRock, Inc. Interest of corporation controlled by the substantial shareholder H Shares Long position 182,008,410 5.39 0.84 Interest of corporation controlled by the substantial shareholder H Shares Short position 23,549,500 0.70 0.11
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2026 Interim Report 109 Section VII Changes in Shares and Particulars of Shareholders (Continued) No. Name of shareholder Capacity H Shares/ A Shares Nature of interest Number of H Shares/ A Shares held Percentage of H Shares/ A Shares held in the total issued H Shares/ A Shares of the Company, respectively Percentage of total issued shares of the Company share % % 3 Rui Life Insurance Company Limited (ࠢ பʮ̡) Beneficial owner H Shares Long position 203,502,000 6.03 0.94 Note: As at 30 June 2026, Capital Holdings, a wholly-owned subsidiary of China Energy, held 11,593,528 A Shares of the Company. As at 30 June 2026, save as disclosed above, there were no other persons who held interests and/or short positions in the shares or underlying shares of the Company, which are required to be recorded in the register to be kept under section 336 of Part XV of the Securities and Futures Ordinance, or who were substantial shareholders of the Company. III. SHAREHOLDINGS OF DIRECTORS AND SENIOR MANAGEMENT (I) Changes in Shareholding of the Incumbent Directors and Senior Management and Those Who Ceased to Hold Office During the Reporting Period ½ Applicable ✔ Not applicable (II) Equity Incentives Granted to Directors and Senior Management During the Reporting Period ½ Applicable ✔ Not applicable (III) Other Explanation ½ Applicable ✔ Not applicable IV. CHANGES IN CONTROLLING SHAREHOLDER OR DE FACTO CONTROLLER ½ Applicable ✔ Not applicable V. INFORMATION ON PREFERENCE SHARES ½ Applicable ✔ Not applicable
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China Shenhua Energy Company Limited 110 Section VIII Report on Review and Financial Statements Tel 曢婘: +852 2846 9888 Fax ₚ䜆: +852 2868 4432 ey.com Ernst & Young 27/F, One Taikoo Place 979 King’s Road Quarry Bay, Hong Kong ⭰㰟㛪姯⸒Ṳ⋀㈧ 榀㸖毩歁㵳勘䙮怺 979噆 ⤑⏋✱ᷧ⺎ 27㧺 Independent Review Report To the board of directors of China Shenhua Energy Company Limited (Incorporated in the People ’s Republic of China with limited liability) INTRODUCTION We have reviewed the interim financial information set out on pages 111 to 153, which comprises the interim condensed consolidated statement of financial position of China Shenhua Energy Company Limited (the “Company ”) and its subsidiaries (the “Group”) as at 30 June 2026 and the related interim condensed consolidated statement of profit or loss and other comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and International Accounting Standard 34 interim financial reporting (“IAS34”) as issued by the International Accounting Standards Board. The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with IAS34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. SCOPE OF REVIEW We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity as issued by the Hong Kong Institute of Certified Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS34. Ernst & Young Certified Public Accountants Hong Kong 28 August 2026
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2026 Interim Report 111 Interim condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2026 (Expressed in Renminbi ( “RMB”)) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) Notes RMB million RMB million Revenue Goods and services 4 189,338 175,423 Cost of sales 6 (132,646) (121,673) Gross profit 56,692 53,750 Selling expenses (461) (511) General and administrative expenses (7,063) (7,763) Research and development costs (1,010) (1,035) Other gains and losses 10 103 480 Other income 7 520 510 Loss allowances, net of reversal 10 37 139 Other expenses (812) (306) Interest income 1,091 1,414 Finance costs 8 (2,723) (2,486) Share of results of associates 1,654 2,268 Profit before income tax 48,028 46,460 Income tax expense 9 (9,964) (9,393) Profit for the period 10 38,064 37,067 Profit for the period 38,064 37,067 Other comprehensive (loss)/income for the period Items that will not be reclassified to profit or loss, net of income tax: Fair value changes on investments in equity instruments at fair value through other comprehensive income 235 23 Share of other comprehensive income of associates 89 115 Items that may be reclassified subsequently to profit or loss, net of income tax: Exchange differences (374) (21) Share of other comprehensive loss of associates (38) (99) Other comprehensive (loss)/income for the period, net of income tax (88) 18 Total comprehensive income for the period 37,976 37,085
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China Shenhua Energy Company Limited 112 Interim condensed consolidated statement of profit or loss and other comprehensive income (Continued) for the six months ended 30 June 2026 (Expressed in Renminbi ( “RMB”)) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) Notes RMB million RMB million Profit for the period attributable to: Equity holders of the Company 31,054 30,478 Non-controlling interests 7,010 6,589 38,064 37,067 Total comprehensive income for the period attributable to: Equity holders of the Company 31,064 30,484 Non-controlling interests 6,912 6,601 37,976 37,085 Earnings per share – Basic and diluted (RMB) 12 1.448 1.438 The notes form part of this interim condensed consolidated financial information.
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2026 Interim Report 113 Interim condensed consolidated statement of financial position 30 June 2026 (Expressed in RMB) 30 June 2026 31 December 2025 (Unaudited) (Restated) Notes RMB million RMB million Non-current assets Property, plant and equipment 13 439,310 437,782 Construction in progress 13 52,319 48,730 Exploration and evaluation assets 12,437 12,437 Intangible assets 10,429 10,109 Right-of-use assets 16 41,352 39,787 Interests in associates 14 83,198 71,633 Financial assets at fair value through profit or loss 123 133 Financial assets at fair value through other comprehensive income 7,211 6,942 Other non-current assets 15 64,447 68,269 Deferred tax assets 8,291 7,868 Total non-current assets 719,117 703,690 Current assets Inventories 17 17,810 15,280 Accounts and bills receivables 18 26,823 22,198 Financial assets at fair value through profit or loss 6,701 –* Financial assets at fair value through other comprehensive income 1,063 2,010 Prepaid expenses and other current assets 19 22,603 28,240 Restricted bank deposits 18,197 20,077 Time deposits with original maturity over three months 65,722 70,449 Cash and cash equivalents 20 51,673 50,487 Total current assets 210,592 208,741 Current liabilities Borrowings 21 82,705 29,624 Accounts and bills payables 22 53,484 60,091 Accrued expenses and other payables 23 83,953 57,044 Current portion of lease liabilities 181 427 Current portion of long-term liabilities 9,928 13,205 Income tax payable 3,458 4,503 Contract liabilities 8,502 6,174 Total current liabilities 242,211 171,068 Net current (liabilities)/assets (31,619) 37,673 Total assets less current liabilities 687,498 741,363 * Amount smaller than RMB500,000.
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China Shenhua Energy Company Limited 114 Interim condensed consolidated statement of financial position (Continued) 30 June 2026 (Expressed in RMB) 30 June 2026 31 December 2025 (Unaudited) (Restated) Notes RMB million RMB million Non-current liabilities Borrowings 21 74,923 72,925 Long-term liabilities 24 28,188 30,862 Accrued reclamation obligations 25 14,982 14,632 Deferred tax liabilities 7,830 7,762 Other non-current liabilities 1,708 1,839 Lease liabilities 1,032 1,115 Total non-current liabilities 128,663 129,135 Net assets 558,835 612,228 Equity Share capital 26 21,689 19,869 Reserves 437,538 500,077 Total equity attributable to equity holders of the Company 459,227 519,946 Non-controlling interests 99,608 92,282 Total equity 558,835 612,228 Approved and authorised for issue by the board of directors on 28 August 2026. Zhang Changyan Executive Director The notes form part of this interim condensed consolidated financial information.
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2026 Interim Report 115 Interim condensed consolidated statement of changes in equity for the six months ended 30 June 2026 (Expressed in RMB) Equity attributable to equity holders of the Company Share capital Share premium Capital reserve Exchange reserve Statutory reserves Other reserves Retained earnings Total Non- controlling interests Total equity RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million (Note 26) (Note (i)) (Note (ii)) (Note (iii)) (Note (iv)) (Note (v)) At 31 December 2025 (audited) 19,869 84,766 16,637 445 36,261 (19,215) 273,813 412,576 72,891 485,467 Add: Business combination under common control (Note 31) – – 144,297 – 7,663 590 (45,180) 107,370 19,391 126,761 At 1 January 2026 (restated) 19,869 84,766 160,934 445 43,924 (18,625) 228,633 519,946 92,282 612,228 Profit for the period – – – – – – 31,054 31,054 7,010 38,064 Other comprehensive (loss)/ income for the period – – – (276) – 286 – 10 (98) (88) Total comprehensive income for the period – – – (276) – 286 31,054 31,064 6,912 37,976 Dividend declared (Note 11) – – – – – – (22,340) (22,340) – (22,340) Appropriation of maintenance and production funds (Note (iii)) – – – – 4,581 – (4,581) – – – Utilisation of maintenance and production funds (Note (iii)) – – – – (2,606) – 2,606 – – – Contributions from non- controlling shareholders – – – – – – – – 777 777 Distributions to non-controlling shareholders – – – – – – – – (363) (363) Shares issued for acquisition of the associate 41 1,871 – – – – – 1,912 – 1,912 Shares issued for ancillary financing 457 19,509 – – – – – 19,966 – 19,966 Business combination under common control 1,322 – (92,264) – – – – (90,942) – (90,942) Others – – – – – 155 (534) (379) – (379) At 30 June 2026 (unaudited) 21,689 106,146 68,670 169 45,899 (18,184) 234,838 459,227 99,608 558,835
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China Shenhua Energy Company Limited 116 Interim condensed consolidated statement of changes in equity (Continued) for the six months ended 30 June 2026 (Expressed in RMB) Equity attributable to equity holders of the Company Share capital Share premium Capital reserve Exchange reserve Statutory reserves Other reserves Retained earnings Total Non- controlling interests Total equity RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million (Note 26) (Note (i)) (Note (ii)) (Note (iii)) (Note (iv)) (Note (v)) At 31 December 2024 (audited) 19,869 84,766 16,637 643 35,325 (19,550) 284,905 422,595 77,667 500,262 Add: Business combination under common control (Note 31) – – 139,010 – 7,315 683 (50,975) 96,033 16,959 112,992 At 1 January 2025 (restated) 19,869 84,766 155,647 643 42,640 (18,867) 233,930 518,628 94,626 613,254 Profit for the period – – – – – – 30,478 30,478 6,589 37,067 Other comprehensive (loss)/ income for the period – – – (32) – 38 – 6 12 18 Total comprehensive income for the period – – – (32) – 38 30,478 30,484 6,601 37,085 Dividend declared (Note 11) – – – – – – (44,903) (44,903) – (44,903) Appropriation of maintenance and production funds (Note (iii)) – – – – 4,799 – (4,799) – – – Utilisation of maintenance and production funds (Note (iii)) – – – – (1,911) – 1,911 – – – Contributions from non- controlling shareholders – – – – – – – – 486 486 Distributions to non-controlling shareholders – – – – – – – – (14,697) (14,697) Others – – 138 – – – (3) 135 (338) (203) At 30 June 2025 (unaudited) (restated) 19,869 84,766 155,785 611 45,528 (18,829) 216,614 504,344 86,678 591,022 The notes form part of this interim condensed consolidated financial information.
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2026 Interim Report 117 Interim condensed consolidated statement of changes in equity (Continued) for the six months ended 30 June 2026 (Expressed in RMB) Notes: (i) Share premium represents the difference between the total amount of the par value of shares issued and the amount of net proceeds received with adjustments for share repurchases. (ii) The capital reserve represents the difference between the total amount of the par value of shares issued and the amount of the net assets, net of other reserves, transferred from Shenhua Group Corporation Limited ( “Shenhua Group ”), in connection with the Restructuring (as defined in Note 1), capital reserve arising from business combinations under common control and other changes in equity. (iii) Statutory reserves Statutory surplus reserve According to the PRC Company Law and the Company ’s Articles of Association, the Company is required to transfer 10% of its net profit as determined in accordance with the China Accounting Standards for Business Enterprises ( “China Accounting Standards ”) to its statutory surplus reserve until the reserve balance reaches 50% of the registered capital. The transfer to this reserve must be made before distribution of dividends to shareholders. The statutory surplus reserve has reached 50% of the registered capital in 2009. Accordingly, no appropriation of net profit to the statutory surplus reserve has been proposed since 1 January 2010. Statutory surplus reserve can be used to make up losses, if any, or to expand the Company ’s business, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital of the Company. The statutory surplus reserve is not distributable. Specific reserve for maintenance and production funds Pursuant to the relevant PRC regulations, the Group is required to transfer production and maintenance funds at fixed rates based on relevant bases, such as production volume, to a specific reserve account. The production and maintenance funds could be utilised when expenses or capital expenditures on production maintenance and safety measures are incurred. The amount of production and maintenance funds utilised would be transferred from the specific reserve account to retained earnings. Discretionary surplus reserve The appropriation to the discretionary surplus reserve is subject to the shareholders ’ approval. The utilisation of the reserve is similar to that of the statutory surplus reserve. The directors of the Company (the “Directors ”) have not proposed any appropriation to the discretionary surplus reserve for the six months ended 30 June 2026 (six months ended 30 June 2025: Nil). (iv) Other reserves Other reserves mainly represent share of other comprehensive income of associates, and fair value changes on investments in equity instruments at fair value through other comprehensive income. (v) Retained earnings Included in the retained earnings of the Group were its share of the surplus reserve of its domestic subsidiaries amounting to RMB39,825 million as at 30 June 2026 (31 December 2025: RMB39,825 million (restated)). The notes form part of this interim condensed consolidated financial information.
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China Shenhua Energy Company Limited 118 Interim condensed consolidated statement of cash flows for the six months ended 30 June 2026 (Expressed in RMB) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) Notes RMB million RMB million Operating activities Profit before income tax 48,028 46,460 Adjustments for: Depreciation and amortisation 10 17,171 16,713 (Gains)/losses on disposal of property, plant and equipment, intangible assets and non-current assets 10 (94) 7 Gains on disposal of a subsidiary 10 – (405) Losses/(gains) on changes in fair value financial assets at FVTPL 10 10 (8) Impairment losses on property, plant and equipment, construction in progress, exploration and evaluation assets and right-of-use assets 10 4 50 Reversal of allowance for prepaid expenses 10 – (1) Loss allowances, net of reversal 10 (37) (139) Write down of inventories, net of reversal 10 (1) (22) Interest income (1,091) (1,414) Share of results of associates (1,654) (2,268) Interest expense 2,506 2,301 Exchange losses, net 8 217 113 Others (22) (101) Operating cash flows before movements in working capital 65,037 61,286 Increase in inventories (2,530) (1,123) Increase in accounts and bills receivables (4,676) (2,681) Decrease in prepaid expenses, other current assets and other non-current assets 6,950 4,210 Decrease in accounts and bills payables (4,689) (1,957) Increase in accrued expenses and other payables 3,645 1,538 Increase in contract liabilities 2,329 1,648 Cash generated from operations 66,066 62,921 Income tax paid (11,402) (11,376) Net cash generated from operating activities 54,664 51,545
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2026 Interim Report 119 Interim condensed consolidated statement of cash flows (Continued) for the six months ended 30 June 2026 (Expressed in RMB) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) Notes RMB million RMB million Investing activities Acquisition of property, plant and equipment, intangible assets, exploration and evaluation assets, additions to the construction in progress and other non-current assets (27,367) (31,037) Increase in right-of-use assets (2,212) (1,126) Proceeds from disposal of property, plant and equipment, intangible assets, and other non-current assets 303 64 Investments in financial asset at fair value through profit or loss 559 – Net cash and cash equivalent increase from disposal of a subsidiary – 493 Investments in associates (9,314) (1,387) Repayment of investment from associates – 489 Repayment of structured deposits 7,200 40,638 Dividend received from associates 901 1,104 Interest received 1,216 1,343 Purchase of structured deposits (13,900) (30,400) Decrease/(increase) in restricted bank deposits 1,880 (2,784) Decrease/(increase) in time deposits with original maturity over three months 4,727 (8,829) Net cash used in investing activities (36,007) (31,432)
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China Shenhua Energy Company Limited 120 Interim condensed consolidated statement of cash flows (Continued) for the six months ended 30 June 2026 (Expressed in RMB) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) Notes RMB million RMB million Financing activities Capital element of lease rentals paid (377) (868) Interest element of lease rentals paid (13) (32) Interest paid (2,719) (1,656) Proceeds from borrowings 129,066 20,860 Repayments of borrowings (73,633) (21,788) Redemption of bonds – (3,021) Repayments of commercial factoring (4,095) (398) Proceeds from bills discounted and commercial factoring 5,235 1,691 Cash paid for acquisition of subsidiaries under common control (90,942) (853) Proceeds from issue of shares 19,966 – Contributions from controlling shareholders – 500 Contributions from non-controlling shareholders 777 638 Distributions to non-controlling shareholders (561) (727) Net cash used in financing activities (17,296) (5,654) Net increase in cash and cash equivalents 1,361 14,459 Cash and cash equivalents, at the beginning of the period 50,487 87,799 Effect of foreign exchange rate changes (175) (24) Cash and cash equivalents, at the end of the period 51,673 102,234 The notes form part of this interim condensed consolidated financial information.
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2026 Interim Report 121 Notes to the Interim Condensed Consolidated Financial Information 30 June 2026 1 PRINCIPAL ACTIVITIES AND ORGANISATION Principal activities China Shenhua Energy Company Limited (the “Company ”) and its subsidiaries (hereinafter collectively referred to as the “Group”) are principally engaged in: (i) the production and sale of coal; and (ii) the generation and sale of coal-based power to provincial/regional electric grid companies in the People ’s Republic of China (the “PRC”). The Group operates an integrated railway network and seaports that are primarily used to transport the Group ’s coal sales from its mines. The primary customers of the Group ’s coal sales include power plants, metallurgical and coal chemical producers in the Chinese mainland. Organisation The Company was established in the PRC on 8 November 2004 as a joint stock limited company as part of the Restructuring (as defined below) of Shenhua Group, a state-owned enterprise under the direct supervision of the State Council of the PRC. Effective on 31 December 2003, the coal production and power generation operations previously operated by various entities wholly-owned or controlled by Shenhua Group were restructured and managed separately (the “Restructuring ”), and those assets and liabilities related to the operations and businesses that were transferred to the Company were revalued by China Enterprise Appraisal Co., Ltd., an independent valuer registered in the PRC, as at 31 December 2003 as required by the PRC rules and regulations. On 8 November 2004, in consideration for Shenhua Group transferring the coal mining and power generating assets and liabilities to the Company, the Company issued 15,000,000,000 domestic state-owned ordinary shares with a par value of RMB1.00 each to Shenhua Group. The shares issued to Shenhua Group represented the entire registered and paid-up share capital of the Company at that date. In 2005, the Company issued 3,089,620,455 H shares with a par value of RMB1.00 each, at a price of Hong Kong Dollars ( “HKD”) 7.50 per H share by way of a global initial public offering. In addition, 308,962,045 domestic state-owned ordinary shares of RMB1.00 each owned by Shenhua Group were converted into H shares. A total of 3,398,582,500 H shares were listed on The Stock Exchange of Hong Kong Limited. In 2007, the Company issued 1,800,000,000 A shares with a par value of RMB1.00 each, at a price of RMB36.99 per A share in the PRC. The A shares were listed on the Shanghai Stock Exchange. In 2026, the Company issued 1,363,248,446 A shares with a par value of RMB1.00 each as share consideration for the acquisition of assets. In addition, the Company issued 457,665,903 A shares to specific investors with a par value of RMB1.00 each to raise supporting funds. The registration of the above newly issued A shares has been completed.
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China Shenhua Energy Company Limited 122 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 1 PRINCIPAL ACTIVITIES AND ORGANISATION (Continued) Immediate parent and ultimate controlling party On 28 August 2017, Shenhua Group received the Notice regarding the Restructuring of China Guodian Corporation and Shenhua Group Corporation Limited (Guo Zi Fa Gai Ge [2017] No. 146) from the State-owned Assets Supervision and Administration Commission of the State Council, which approves that China Guodian Corporation (the “China Guodian ”) and Shenhua Group shall implement the joint restructuring, China Guodian shall be merged into Shenhua Group, and the company name of Shenhua Group shall be changed to China Energy Group. China Energy Group will be the parent company after the completion of the restructuring. On 27 November 2017, Shenhua Group completed the industrial and commercial registration of changes in the business license. The Directors consider the immediate parent and the ultimate holding company of the Group to be China Energy Group. 2 BASIS OF PREPARATION This interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and International Accounting Standard 34 Interim financial reporting ( “IAS34”), as issued by the International Accounting Standards Board. It was authorised for issue on 28 August 2026. The interim condensed consolidated financial information has been prepared in accordance with the same accounting policies adopted in the Group ’s annual consolidated financial statements for the year ended 31 December 2025, except for the accounting policy changes that are expected to be reflected in the Group ’s annual consolidated financial statements for the year ending 31 December 2026. Details of any changes in accounting policies are set out in Note 3 to the interim condensed consolidated financial information. The preparation of the interim condensed consolidated financial information in conformity with IAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates. This interim condensed consolidated financial information includes selected explanatory notes in relation to the events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the Group ’s annual consolidated financial statements for the year ended 31 December 2025. The interim condensed consolidated financial information and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with IFRS Accounting Standards. As at 30 June 2026, the current net liabilities of the Group amounted to RMB31,619 million. The Directors have considered the availability of funding sources, including but not limited to unutilised banking facilities of RMB107,900 million as at 30 June 2026. The Directors believe that the Group has sufficient working capital to continue as a going concern for not less than 12 months after the end of reporting period. Therefore, the Directors continue to prepare the interim condensed consolidated financial information for six months ended 30 June 2026 on a going concern basis.
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2026 Interim Report 123 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 3 CHANGES IN ACCOUNTING POLICIES The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group ’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended IFRS Accounting Standards for the first time for the current period ’s financial information. Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to IFRS Accounting Standards – Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 The amendments do not have a material impact on this interim report. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. 4 REVENUE FROM GOODS AND SERVICES Disaggregation of revenue of business lines is as follows: Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Revenue from goods and services – Coal 110,075 103,322 – Power 49,346 47,102 – Transportation and other services 9,681 8,246 – Coal chemical products 13,362 10,086 182,464 168,756 Others 6,874 6,667 189,338 175,423 The Group ’s revenue from contracts with customers is RMB189,242 million for the six months ended 30 June 2026 (six months ended 30 June 2025: RMB175,300 million (restated)). The Group produces and sells coal and coal chemical products to customers at spot market. For sales of coal and coal chemical products, revenue is recognised when control of the goods has transferred, being when the goods have been shipped to the customers ’ specific location. According to the Group ’s historical experiences, there was no significant exchange or return of coal and coal chemical products occurred. There is no sales-related warranties associated with coal and coal chemical products.
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China Shenhua Energy Company Limited 124 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 4 REVENUE FROM GOODS AND SERVICES (Continued) For sales of power, revenue is recognised upon the transmission of electric power to the power grid companies. Power could not be returned or exchanged and there is also no warranties associated with power sales. The Group provides railway transportation services, shipment transportation services as well as port loading and storage services to customers. Such services are recognised as a performance obligation satisfied over time as the Group rendering the services. Revenue is recognised for these services based on the stage of completion of the performance obligation using output method. All performance obligations of sales of coal, power and coal chemical products, railway and shipment transportation services, and port loading and storage services are part of contracts with an original expected duration of one year or less, and as permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed. 5 SEGMENT AND OTHER INFORMATION The Group manages its businesses by divisions, which are organised by business lines (products and services). In a manner consistent with the way in which information is reported internally to the Group ’s chief operating decision maker ( “CODM”), including chief executive officer, executive vice president and chief financial officer, for the purposes of resource allocation and performance assessment, the Group has presented the following six reportable segments. No operating segments have been aggregated to form the following reportable segments. (1) Coal operations – which produce coal from surface and underground mines, and the sale of coal to external customers, the power operations segment and the coal chemical operations segment. The Group sells its coal under long-term supply contracts, which allow periodical price adjustments, and at spot market. (2) Power operations – which use coal from the coal operations segment and external suppliers, thermal power, water power, gas power and photovoltaic power to generate electric power for the sale to coal operations segment and external customers. Electric power is mainly sold to the power grid companies at the market price. (3) Railway operations – which provide railway transportation services to the coal operations segment, the power operations segment, the coal chemical operations segment and external customers. The rates of freight charges billed to the coal operations segment, the power operations segment, the coal chemical operations segment and external customers are consistent and do not exceed the maximum amounts approved by the relevant government authorities. (4) Port operations – which provide loading, transportation and storage services to the coal operations segment and external customers. The Group charges service fees and other expenses, which are reviewed and approved by the relevant government authorities.
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2026 Interim Report 125 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 5 SEGMENT AND OTHER INFORMATION (Continued) (5) Shipping operations – which provide shipment transportation services to the coal operations segment, the power operations segment and external customers. The Group charges different freight rates from the coal operations segment, the power operations segment and external customers by reference to the current index and historical index of the Shanghai Shipping Exchange. (6) Coal chemical operations – which use coal from the coal operations segment to first produce methanol and further process into polyethylene and polypropylene, coal-to-liquids, together with other by-products, for sale to external customers. The Group sells its polyethylene at spot market. (a) Segment results For the purposes of assessing segment performance and allocating resources between segments, the Group ’s CODM monitors the results attributable to each reportable segment based on profit before income tax ( “reportable segment profit ”). Reportable segment profit represents the profit earned by each segment without allocation of head office and corporate items. Inter-segment sales are primarily charged at prevailing market rate which are the same as those charged to external customers. Information regarding the Group ’s reportable segments as provided to the Group ’s CODM for the purposes of resource allocation and assessment of segment performance for the six months ended 30 June 2026 and 2025 is set out below: Six months ended 30 June Coal Power Railway Port Shipping Coal chemical T otal 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB million million million million million million million million million million million million million million Revenue from external customers 112,375 105,680 52,363 50,140 6,947 5,662 1,249 1,103 2,651 2,383 13,753 10,455 189,338 175,423 Inter-segment revenue 23,195 22,134 143 91 15,786 15,772 2,326 2,416 2,623 1,580 971 677 45,044 42,670 Reportable segment revenue 135,570 127 ,814 52,506 50,231 22,733 21,434 3,575 3,519 5,274 3,963 14,724 11,132 234,382 218,093 Reportable segment profit 28,918 29,357 6,101 6,354 7 ,870 7 ,260 1,589 1,378 429 283 2,211 (336) 47 ,118 44,296 Including: Interest expenses 1,162 1,493 973 898 144 133 48 58 27 24 169 188 2,523 2,794 Depreciation and amortisation 6,011 6,521 6,124 5,206 2,797 2,797 474 517 308 246 1,388 1,380 17 ,102 16,667 Share of results of associates 79 239 263 224 – – 1 1 – – 253 250 596 714 Loss allowances and impairment of assets (34) (89) – (49) – 1 – (5) – 46 – (16) (34) (112)
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China Shenhua Energy Company Limited 126 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 5 SEGMENT AND OTHER INFORMATION (Continued) (b) Reconciliations of reportable segment revenue, segment profit and other items of profit or loss for the six months ended 30 June 2026 and 2025 are set out below: Reportable segment amounts Unallocated head office and corporate items Elimination of inter- segment amounts Consolidated 2026 2025 2026 2025 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) (Restated) (Restated) RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million Revenue 234,382 218,093 436 430 (45,480) (43,100) 189,338 175,423 Profit before income tax 47 ,118 44,296 1,235 2,703 (325) (539) 48,028 46,460 Interest expenses 2,523 2,794 616 493 (718) (987) 2,421 2,300 Depreciation and amortisation 17 ,102 16,667 69 46 – – 17 ,171 16,713 Share of results of associates 596 714 1,104 1,588 (46) (34) 1,654 2,268 Loss allowances and impairment of assets (34) (112) – – – – (34) (112) (c) Other information Certain other information of the Group ’s segments for the six months ended 30 June 2026 and 2025 is set out below: Coal Power Railway Port Shipping Coal chemical Unallocated items Eliminations Total 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) (Unaudited) (Restated) RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million Capital expenditures (Note (i)) 6,271 6,118 11,654 11,071 1,286 1,136 1,002 287 1 1,001 2,901 2,459 175 4 – – 23,290 22,076 Total assets (Note (ii)) 463,979 431,548 304,709 283,175 144,425 136,306 23,438 21,711 11,984 12,525 77,124 72,731 621,066 481,127 (717,016) (526,692) 929,709 912,431 Total liabilities (Note (ii)) (255,647) (236,834) (157,903) (188,153) (50,142) (48,830) (6,137) (6,325) (4,111) (3,358) (47,127) (41,843) (317,184) (195,169) 467,377 420,309 (370,874) (300,203) Notes: (i) Capital expenditures consist of addition in property, plant and equipment, construction in process, exploration and evaluation assets, intangible assets, long-term deferred expense and land use rights and prepayment for mining projects. (ii) Unallocated items of total assets include deferred tax assets and other unallocated corporate assets. Unallocated items of total liabilities include deferred tax liabilities and other unallocated corporate liabilities.
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2026 Interim Report 127 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 6 COST OF SALES Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Coal purchased 22,367 16,986 Materials, fuel and power 21,241 18,676 Personnel expenses 19,465 21,908 Depreciation and amortisation 14,667 14,330 Repairs and maintenance 4,989 5,805 Transportation charges 11,985 9,554 Taxes and surcharges 13,033 11,248 Other operating costs 24,899 23,166 132,646 121,673 7 OTHER INCOME Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Government grants 82 59 Claim income 192 227 Others 246 224 520 510
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China Shenhua Energy Company Limited 128 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 8 FINANCE COSTS Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Interest expense 1,807 1,752 Less: amount capitalised (313) (187) 1,494 1,565 Unwinding of discount 927 735 Exchange losses, net 217 113 Others 85 73 2,723 2,486 9 INCOME TAX EXPENSE Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Current tax, mainly PRC enterprise income tax 10,285 9,246 Deferred tax (321) 147 9,964 9,393
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2026 Interim Report 129 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 9 INCOME TAX EXPENSE (Continued) Under the Law of the PRC on Enterprise Income Tax (the “EIT Law ”) and Implementation Regulation of the EIT Law, the tax rate applicable for the PRC group entities is 25% (2025: 25%) except for subsidiaries and branches operating in the western developing region of the PRC which are qualified to be entitled to a preferential tax rate of 15% from 2021 to 2030. The applicable tax rates of the Group ’s subsidiaries are as follows: Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) % % Indonesia 22.0 22.0 United States – Federal income tax rates 21.0 21.0 United States – Pennsylvania income tax rates 9.9 9.9 Hong Kong 8.25/16.5* 8.25/16.5* During the six months ended 30 June 2026 and 2025, there was no significant assessable profit and provision for income tax for the subsidiaries not operating in Chinese mainland. * The two-tiered profits tax rates regime is applicable from the year of assessment 2018/19 onwards. The profits tax rate for the first HKD2,000,000 of profits of corporations will be lowered to 8.25%, and profits above that amount will continue to be subject to the tax rate of 16.5%.
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China Shenhua Energy Company Limited 130 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 10 PROFIT FOR THE PERIOD Profit for the period has been arrived at after charging/(crediting): Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Personnel expenses, including 30,752 32,620 – contributions to defined contribution plans 4,376 4,190 Depreciation of property, plant and equipment 15,214 15,006 Depreciation of right-of-use assets 804 718 Amortisation of intangible assets 361 321 Amortisation of other non-current assets 859 719 Depreciation and amortisation charged for the period 17,238 16,764 Less: amount capitalised 67 51 Depreciation and amortisation (Note) 17,171 16,713 Loss allowances, net of reversal – Trade and other receivables (37) (139) Other (gains) and losses, represent – (gains)/losses on disposal of property, plant and equipment, exploration and evaluation assets, intangible assets and non-current assets (94) 7 – gains on disposal of a subsidiary – (405) – losses/(gains) on changes in fair value of financial assets 10 (8) – impairment losses on property, plant and equipment – 50 – impairment losses on construction in progress 4 – – reversal of allowance for prepaid expenses – (1) – write down of inventories, net of reversal (1) (22) – others (22) (101) (103) (480) Cost of inventories 90,818 83,665 Operating lease charges relating to short-term leases, leases of low-value assets and variable lease payments 191 234 Exchange gains and losses, net 217 113 Note: Cost of sales included an amount of depreciation and amortisation of RMB14,667 million for the six months ended 30 June 2026 (six months ended 30 June 2025: RMB14,330 million (restated)).
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2026 Interim Report 131 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 11 DIVIDENDS A final dividend in respect of the year ended 31 December 2025 of RMB1.03 per ordinary share totaling RMB22,340 million (six months ended 30 June 2025: RMB2.26 per ordinary share totaling RMB44,903 million in respect of the year ended 31 December 2024) was approved at the annual general meeting held on 26 June 2026 and paid in full as of the date of approval of this interim condensed consolidated financial information. Subsequent to the end of the reporting period, an interim dividend in respect of the six months ended 30 June 2026 of RMB21,256 million (inclusive of tax) at RMB0.98 (inclusive of tax) per ordinary share (six months ended 30 June 2025: RMB19,471 million at RMB0.98 per ordinary share), has been proposed by the Board of Directors and is subject to the approval at the general meeting of the Company. 12 EARNINGS PER SHARE The calculation of basic earnings per share is based on the profit attributable to ordinary equity holders of the Company of RMB31,054 million (six months ended 30 June 2025: RMB30,478 million (restated)) and the 21,447 million ordinary shares in issue during the six months ended 30 June 2026 (six months ended 30 June 2025: 21,191 million shares (restated)). No diluted earnings per share is presented as there were no potential ordinary shares in existence for both periods. 13 PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS During the six months ended 30 June 2026, additions to the Group ’s property, plant and equipment, amounted to approximately RMB17,305 million (six months ended 30 June 2025: approximately RMB10,280 million (restated)). During the six months ended 30 June 2026, the net book value of the disposals of property, plant and equipment amounted to RMB207 million (six months ended 30 June 2025: RMB236 million (restated)). The Group is in the process of applying for the title certificates of certain of its properties with an aggregate carrying amount of RMB2,804 million as at 30 June 2026 (31 December 2025: RMB3,275 million (restated)). The Directors are of the opinion that the Group is entitled to lawfully and validly occupy or use the above mentioned properties. As at 30 June 2026, the Group is in the process of obtaining requisite permits for certain of its power plants and railways from the relevant government authorities. The Directors are of the opinion that the Group will be able to obtain the requisite permits in due course. The Group recognised impairment losses on property, plant and equipment and equipment and construction in progress of RMB4 million during the six months ended 30 June 2026 (six months ended 30 June 2025: RMB50 million (restated)). As at 30 June 2026, the Group has bank loans secured by the Group ’s property, plant and equipment with an aggregate carrying amount of RMB1,147 million (31 December 2025: RMB2,011 million (restated)).
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China Shenhua Energy Company Limited 132 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 14 INTERESTS IN ASSOCIATES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Unlisted shares, at cost 56,964 52,497 Share of post-acquisition profits and other comprehensive income, net of dividend received 26,234 19,136 83,198 71,633 Name of associates Proportion of ownership interest and voting power held by the Group Principal activities 30 June 2026 31 December 2025 (Unaudited) (Restated) % % Beijing Guodian Power Co., Ltd. 43 43 Generation and sale of electricity China Energy Finance Co., Ltd. 40 40 Provision of comprehensive financial service Haoji Railway Co., Ltd. 13 13 Provision of transportation service Jinshen Energy Co., Ltd (“Jinshen Energy ”) 49 – Sale of coal Shendong Tianlong Group Co., Ltd. 20 20 Coal production And sale Guohua (Hebei) Renewables Co., Ltd. 25 25 Generation and sale of electricity Suizhong Power Generation Co., Ltd. (“Suizhong Power ”) 15 15 Generation and sale of electricity
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2026 Interim Report 133 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 15 OTHER NON-CURRENT ASSETS 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Prepayments in connection with construction work, equipment purchases and others (Note (i)) 32,689 35,408 Prepayment for mining projects 2,000 2,000 Deductible VAT and other tax 584 591 Service concession receivables (Note (ii)) 15,280 15,874 Goodwill 5,249 5,249 Long-term deferred expenses (Note (iii)) 8,645 9,147 64,447 68,269 Notes: (i) At 30 June 2026, the Group had prepayments to subsidiaries of China Energy Group ( “fellow subsidiaries ”) amounting to RMB492 million (31 December 2025: RMB491 million (restated)). (ii) Pursuant to the Power Purchase Agreements entered between certain power plants of the Group and PT Perusahaan Listrik Negara (Persero) ( “PLN”), an independent third party, certain power plants of the Group build power plants to supply electricity to PLN for a 25-30 years period from the power plant ’s commercial operation date under the service concession scheme. Service concession receivables represents service provided in connection with the service concession arrangement, for which a guaranteed minimum payments have been agreed. Due to the length of the payment plans, receivables are the present value of future guaranteed cash receipts discounted using effective interest rate. (iii) The movement of long-term deferred expenses during the period/year as follows: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million At the beginning of the period/year 9,147 7,186 Additions 407 5,283 Amortisation (859) (3,015) Disposal (50) (307) At the end of the period/year 8,645 9,147 16 RIGHT-OF-USE ASSETS The right-of-use assets represent the payment of land use rights to the PRC ’s government authorities and the leased assets. The Group is in the process of applying for the title certificates of certain land use rights certificates with an aggregate carrying amount of RMB1,133 million as at 30 June 2026 (31 December 2025: RMB1,147 million (restated)). The Directors are of the opinion that the Group is entitled to lawfully and validly occupy or use the above mentioned lands. As at 30 June 2026, the Group has no bank loans or other loans secured by the Group ’s right- of-use assets (31 December 2025: Nil (restated)).
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China Shenhua Energy Company Limited 134 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 17 INVENTORIES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Coal 11,299 7,607 Materials and supplies 8,684 10,174 19,983 17,781 Less: write-down of inventories (2,173) (2,501) 17,810 15,280 18 ACCOUNTS AND BILLS RECEIVABLES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Accounts receivable – China Energy Group and fellow subsidiaries 4,597 3,165 – Associates 10 51 – Third parties 15,737 14,975 20,344 18,191 Less: allowance for credit losses (1,588) (1,625) 18,756 16,566 Bills receivables – China Energy Group and fellow subsidiaries 7,611 5,203 – Associates 420 122 – Third parties 36 307 8,067 5,632 26,823 22,198 As at 30 June 2026, accounts and bills receivables from contracts with customers amounted to RMB28,411 million (31 December 2025: RMB23,823 million (restated)). Bills receivables were mainly issued by PRC banks and are expiring within one year.
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2026 Interim Report 135 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 18 ACCOUNTS AND BILLS RECEIVABLES (Continued) As of the end of the reporting period, the ageing analysis of trade receivables, based on the invoice date and net of loss allowance, is as follows: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Less than one year 18,309 16,067 One to two years 236 230 Two to three years 146 89 More than three years 65 180 18,756 16,566 19 PREPAID EXPENSES AND OTHER CURRENT ASSETS 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Financial assets measured at amortised cost – Service concession receivables (Note 15(ii)) 1,470 1,926 – Entrusted loan (Note) 290 734 – Other receivables due from associates 842 752 – Other receivables 4,761 8,817 – Other loans 4,500 4,500 11,863 16,729 Less: impairment losses (5,746) (5,753) 6,117 10,976 Prepaid expenses and deposits 10,624 10,650 Deductible VAT and other tax 5,862 6,614 22,603 28,240
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China Shenhua Energy Company Limited 136 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 19 PREPAID EXPENSES AND OTHER CURRENT ASSETS (Continued) Note: As at 30 June 2026, the Group has a long-term entrusted loan of RMB290 million (31 December 2025: RMB395 million) to an associate through a PRC state-owned bank, with an interest rate of 4.75% per annum. The entrusted loan had a term of 3 years and expired on 23 December 2023, and Yili Chemical Industry failed to fully repay the principal on time; Yili Chemical Industry has implemented corresponding guarantee measures for the loan through asset mortgage. The two parties are in the process of negotiating the follow-up of the remaining entrusted loan. 20 CASH AND CASH EQUIVALENTS Cash and cash equivalents in the interim condensed consolidated statement of financial position and the interim condensed consolidated statement of cash flows comprise cash at bank and in hand, and time deposits with original maturity within three months. As of the end of the reporting period, cash and cash equivalents situated in Chinese mainland amounted to RMB51,673 million (31 December 2025: RMB50,487 million (restated)). Remittance of funds out of Chinese mainland is subject to relevant rules and regulations of foreign exchange control. 21 BORROWINGS An analysis of the Group ’s borrowings is as follows: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Current borrowings: – Short-term bank and other borrowings 67,549 13,118 – Current portion of long-term borrowings 15,156 16,506 82,705 29,624 Non-current borrowings: – Long-term borrowings, less current portion 74,923 72,925 157,628 102,549 Secured 11,097 11,758 Unsecured 146,531 90,791 157,628 102,549
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2026 Interim Report 137 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 21 BORROWINGS (Continued) The exposure of the long-term borrowings and the contractual maturity dates: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million The exposure of the long-term borrowings and the contractual maturity dates: – Within one year 15,156 16,506 – More than one year, but not exceeding two years 17,437 13,604 – More than two years, but not exceeding five years 19,056 23,415 – More than five years 38,430 35,906 90,079 89,431 As at 30 June 2026, the Group had borrowings from China Energy Group and fellow subsidiaries amounting to RMB31,867 million (31 December 2025: RMB39,421 million (restated)). 22 ACCOUNTS AND BILLS PAYABLES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Accounts payable – China Energy Group, associates of China Energy Group and fellow subsidiaries 5,057 4,175 – Associates 794 979 – Third parties 46,317 52,063 52,168 57,217 Bills payables 1,316 2,874 53,484 60,091
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China Shenhua Energy Company Limited 138 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 22 ACCOUNTS AND BILLS PAYABLES (Continued) The following is an ageing analysis of accounts and bills payables, presented based on invoice date at the end of the reporting period: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Less than one year 47,593 54,946 One to two years 3,752 2,895 Two to three years 1,166 1,066 More than three years 973 1,184 53,484 60,091 23 ACCRUED EXPENSES AND OTHER PAYABLES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Accrued staff wages and welfare benefits 16,177 11,659 Accrued interests 25 23 Taxes payable other than income tax 6,402 7,533 Dividends payable (Note) 24,023 1,881 Other accrued expenses and payables 37,326 35,948 83,953 57,044 Note: The Company has announced the distribution of the final dividend for the fiscal year 2025 to all shareholders, amounting to RMB22,340 million (including tax), in accordance with the approval from the 2025 Annual General Meeting of Shareholders. As of the date of approval of this interim condensed consolidated financial information, the aforementioned dividend has been fully distributed.
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2026 Interim Report 139 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 24 LONG-TERM LIABILITIES 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Payables for acquisition of mining rights (Note (i)) 18,080 22,199 Deferred income (Note (ii)) 2,088 2,091 Defined benefit plans 3,791 3,779 Lease liabilities 4,358 6,999 Provisions 3,634 3,409 Others 6,165 5,590 38,116 44,067 Analysed for reporting purpose as: – Current liabilities 9,928 13,205 – Non-current liabilities 28,188 30,862 38,116 44,067 Notes: (i) The payables for acquisition of mining rights is the present value of the payable mining rights. The mining rights payable shall be paid annually during the execution of the contract. (ii) Deferred income mainly represents grants provided by several local governments in the PRC to encourage the construction of non-current assets. 25 ACCRUED RECLAMATION OBLIGATIONS The accrual for reclamation costs has been determined based on management ’s best estimates. However, so far as the effect on the land from current mining activities becomes apparent in future periods, the estimate of the associated costs may be subject to change. Accordingly, the actual costs and cash flows may differ from estimates. The Directors believe that the accrued reclamation obligations at 30 June 2026 are adequate and appropriate.
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China Shenhua Energy Company Limited 140 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 26 SHARE CAPITAL 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Registered, issued and fully paid: 18,311,952,304 domestic listed A shares of RMB1.00 each (Note) 18,311 16,491 3,377,482,000 H shares of RMB1.00 each 3,378 3,378 21,689 19,869 All A shares and H shares rank pari passu in all material aspects. Note: During the six months ended 30 June 2026, the Company issued 1,322,301,165 A shares as consideration for business combinations under common control (Note 31), 40,947,281 A shares as consideration for the acquisition of a 49% equity interest in Jinshen Energy, an associate of the Group, and 457,665,903 A shares for cash to raise ancillary funds in connection with the acquisitions. 27 CAPITAL MANAGEMENT The Group ’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares to reduce debts. The Group monitors capital using a gearing ratio which is total liabilities divided by total assets. The Group aims to maintain the gearing ratio at a reasonable level. The Group ’s gearing ratio as at 30 June 2026 was 40% (31 December 2025: 33% (restated)).
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2026 Interim Report 141 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 28 COMMITMENTS AND CONTINGENT LIABILITIES (a) Capital commitments As at 30 June 2026, the Group had capital commitments for land, buildings and mining rights, equipment and other as follows: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Contracted for but not provided – Land, buildings and exploration and evaluation assets 55,018 55,706 – Equipment 33,115 36,391 – Other 2,919 2,919 91,052 95,016 (b) Financial guarantees issued As at 30 June 2026, the Group had issued certain guarantees in respect of certain banking facilities granted to an entity of which the Group held less than 20% equity interest. The maximum amount guaranteed is RMB47 million (31 December 2025: RMB57 million (restated)). (c) Legal contingencies The Group is the defendant in certain lawsuits as well as the plaintiff in other proceedings arising in the ordinary course of business. While the outcomes of such contingencies, lawsuits or other proceedings cannot be determined at present, management believes that any resulting liabilities will not have a material adverse effect on the financial position or operating results of the Group.
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China Shenhua Energy Company Limited 142 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 28 COMMITMENTS AND CONTINGENT LIABILITIES (Continued) (d) Environmental contingencies To date, the Group has not incurred any significant expenditure for environmental remediation, is currently not involved in any environmental remediation, and apart from the provision for land reclamation costs, has not accrued any further amounts for environmental remediation relating to its operations. Under the existing legislation, management believes that there are no probable liabilities that will have a material adverse effect on the financial position or operating results of the Group. The regulatory bodies, however, have moved, and may move further towards the adoption of more stringent environmental standards. Environmental liabilities are subject to considerable uncertainties which affect the Group ’s ability to estimate the ultimate cost of remediation efforts. These uncertainties include (i) the exact nature and extent of the contamination at various sites including, but not limited to coal mines and land development areas, whether operating, closed or sold; (ii) the extent of required cleanup efforts; (iii) varying costs of alternative remediation strategies; (iv) changes in environmental remediation requirements; and (v) the identification of new remediation sites. The amount of such future cost is indeterminable due to such factors as the unknown magnitude of possible contamination and the unknown timing and extent of the corrective actions that may be required. Accordingly, the outcome of environmental liabilities under future environmental legislation cannot reasonably be estimated at present, and could be material. 29 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis The following table presents the fair value of the Group ’s financial instruments measured at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in IFRS 13, Fair value measurement. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: • Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available. • Level 3 valuations: Fair value measured using significant unobservable inputs.
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2026 Interim Report 143 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 29 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Continued) Fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued) 30 June 2026 31 December 2025 Fair value hierarchy Valuation technique(s) and key input(s) (Unaudited) (Restated) RMB million RMB million Financial assets Financial assets at fair value through profit or loss (current) – stock –* –* Level 1 Quoted prices in active market. Financial assets at fair value through profit or loss (current) – structural deposits 6,701 – Level 2 Observable inputs which fail to meet Level 1. Financial assets at fair value through profit or loss (non-current) 123 133 Level 3 Market comparison approach. Fair value is estimated based on value of comparable listed companies, multiples and discount for lack of liquidity. Unlisted equity securities 7,211 6,942 Level 3 Market comparison approach. Fair value is estimated based on value of comparable listed companies, multiples and discount for lack of liquidity. Accounts and bills receivables 1,063 2,010 Level 3 Discounted cash flow method. The significant unobservable inputs used by the Group for the valuation are the expected rates of return. * Amount smaller than RMB500,000 During the year ended 31 December 2025 and the six months ended 30 June 2026, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the consolidated financial statements approximate their fair values.
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China Shenhua Energy Company Limited 144 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group The Group is controlled by China Energy Group and has significant transactions and relationships with China Energy Group, an associate of China Energy Group and subsidiaries of China Energy Group ( “fellow subsidiaries ”). An associate refers to an enterprise over which China Energy Group is able to exercise significant influence or control. The Group also has entered into transactions with its associates, over which the Group can exercise significant influence. The Group had the following transactions with China Energy Group, associates of China Energy Group, fellow subsidiaries, and associates of the Group during both periods: Six months ended 30 June 2026 2025 (Unaudited) (Restated) Notes RMB million RMB million Interest income (i) 563 620 Income from an entrusted loan (ii) 8 9 Interest expense (iii) 414 460 Purchases of ancillary materials and spare parts (iv) 516 424 Ancillary and social services (v) 1,463 991 Transportation service income (vi) 6,306 4,290 Transportation service expense (vii) – 3 Sale of coal (viii) 36,589 33,878 Purchase of coal (ix) 6,594 6,509 Property leasing (x) 30 65 Repairs and maintenance services expense (xi) 32 1 Purchase of equipment and construction work (xii) 545 410 Sale of coal chemical product (xiii) 366 538 Other income (xiv) 679 566 Net deposits placed with Finance Company (xv) (10,951) 3,885 Granting of Loans from China Energy Group and fellow subsidiaries (xvi) 22,522 7,628 Repayment of loans from China Energy Group and fellow subsidiaries (xvii) 7,022 10,789 Bills receivables discounted from Finance Company (xviii) 141 287 The issuance of bills by Finance Company (xix) 1,699 1,795 Factoring services (xx) 9,717 4,111
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2026 Interim Report 145 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group (Continued) Notes: (i) Interest income represents interest earned from deposits in fellow subsidiaries. The applicable interest rate is determined in accordance with the prevailing interest rates published by the PBOC. (ii) Income from an entrusted loan represents interest earned from an entrusted loan to an associate of the Group. The applicable interest rate is determined in accordance with the prevailing interest rates published by the PBOC. (iii) Interest expense represents interest incurred from loans from China Energy Group and fellow subsidiaries. The applicable interest rate is determined in accordance with the prevailing interest rates published by the PBOC. (iv) Purchases of ancillary materials and spare parts represent purchase of materials and utility supplies related to the Group ’s operations from fellow subsidiaries and associates of China Energy Group. (v) Ancillary and social services represent expenditures for social welfare and support services such as property management, water and electricity supply, and canteen expense paid to China Energy Group, fellow subsidiaries and associates of China Energy Group. (vi) Transportation service income represents income earned from fellow subsidiaries in respect of coal transportation services. (vii) Transportation service expense represents expenses paid to fellow subsidiaries in respect of coal transportation services. (viii) Sale of coal represents income from sale of coal to fellow subsidiaries and associates of China Energy Group. (ix) Purchase of coal represents coal purchased from associates of the Group, associates of China Energy Group and fellow subsidiaries. (x) Property leasing expense represents rental paid or payable in respect of properties leased from fellow subsidiaries. (xi) Repairs and maintenance services expense represents expense related to machinery repairs and maintenance services provided by fellow subsidiaries. (xii) Purchase of equipment and construction work represents expenditure related to equipment and construction service provided by fellow subsidiaries. (xiii) Sale of coal chemical product represents income from sale of coal chemical product to fellow subsidiaries. (xiv) Other income includes agency income, repairs and maintenance service income, sales of ancillary materials and spare parts, management fee income, sales of water and electricity, financial service income, lease income, etc. earned from China Energy Group, an associate of China Energy Group and fellow subsidiaries.
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China Shenhua Energy Company Limited 146 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group (Continued) (xv) Net deposits placed with Finance Company represents net deposits placed by the Group with Finance Company. (xvi) Granting of entrusted loans from China Energy Group and fellow subsidiaries. (xvii) Repayment of entrusted loans from China Energy Group and fellow subsidiaries. (xviii) Bills receivables discounted from Finance Company represents bill acceptance and discount services provided by Finance Company to the Group. (xix) The issuance of bills by Finance Company refers to the issuance of acceptance bills by Finance Company to the Group. (xx) Factoring services refer to receiving factoring services from China Energy Group and fellow subsidiaries. The Directors are of the opinion that the above transactions with related parties were conducted in the ordinary course of business and in accordance with the agreements governing such transactions. The Group entered into a number of agreements with China Energy Group, an associate of China Energy Group, fellow subsidiaries, and associates of the Group. The terms of the principal agreements are summarised as follows: (i) The Company has entered into a mutual supply agreement for the mutual provision of production supplies and ancillary services with associates of China Energy Group and fellow subsidiaries. Pursuant to the agreement, associates of China Energy Group and fellow subsidiaries provide the Group with the production supplies and services, ancillary production services including the use of the information network system and ancillary administrative services. On the other hand, the Group provides fellow subsidiaries with water supplies, rolling stock management, railway management, railway transportation and other related or similar production supplies or services and use of the information network system. The products and services provided under the agreement, other than the sharing of use of the information network system which is free of charge, are provided in accordance with the following pricing policy: – price prescribed by the state (including any price prescribed by any relevant local government), if applicable;
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2026 Interim Report 147 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group (Continued) – where there is no state-prescribed price but where there is a state-guidance price, then the state-guidance price; – where there is neither a state-prescribed price nor a state-guidance price, the market price; or – where none of the above is applicable or where it is not practical to apply the above pricing policies in reality, the price to be agreed between the relevant parties shall be based on reasonable costs incurred in providing the goods or services plus a reasonable profit margin of such costs. (ii) The Company has entered into mutual coal supply agreements with associates of China Energy Group, fellow subsidiaries and associates of the Group. The mutual coal supplied is charged at the prevailing market price. (iii) The Company has entered into a financial services agreement with Finance Company. Pursuant to the agreement, Finance Company provides financial services to the Group. The interest rate for the deposits with Finance Company from the Group should not be lower than the lowest limit published by the PBOC for the same type of deposit. The interest rate for loans made by Finance Company to the Group should not be higher than the highest limit published by the PBOC for the same type of loan. The above interest rates should be determined by reference to the rate charged by normal commercial banks in the PRC for comparable deposits and loans on normal commercial terms. The fees charged by Finance Company for the provision of other financial services shall be determined according to the rates chargeable by the PBOC or the China Banking Regulatory Commission. (iv) The Group has entered into a property leasing agreement with fellow subsidiaries of China Energy Group for leasing of certain properties to each other. No rent is payable by the Group before fellow subsidiaries obtains the relevant property ownership certificate. The rental charges are based on comparable market rates. If fellow subsidiaries of China Energy Group negotiate to sell a leased property to a third party, the Company has a pre-emptive right to purchase such property under terms no less favorable than other third party. (v) The Group has entered into a land leasing agreement with fellow subsidiaries of China Energy Group. The annual rent is determined based on the local market rate. The Group is not allowed to sub-let the leased land.
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China Shenhua Energy Company Limited 148 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group (Continued) (vi) The Group has entered into an agency agreement for the export of coal with a fellow subsidiary of China Energy Group. The fellow subsidiary is appointed as a non-exclusive export agent of the Group and is entitled to receive an agency fee based on the relevant market rates or lower rates. Currently, the rate is 0.70% of the free on board sales price of coal exported. When obtaining export agent conditions from a third party that are equal to or inferior to those of the China Energy Group, the Company shall give preference to the China Energy Group as the export agent of coal products. (vii) The Group entered into an agency agreement for the sale of coal with fellow subsidiaries of China Energy Group. The Group is appointed as the exclusive sales agent of fellow subsidiaries of China Energy Group for thermal coal and non-exclusive sales agent for coking coal. The Group is entitled to receive an agency fee, which is based on its related costs incurred plus a profit margin of 5% for sales of coal outside the Inner Mongolia Autonomous Region. No agency fee is charged for sales of coal within the Inner Mongolia Autonomous Region. (viii) The Group has entered into agreements with fellow subsidiaries of China Energy Group under which the Group has been granted the right to use certain trademarks. Fellow subsidiaries of China Energy Group bear its own cost for the registration of such trademarks during the term of the trademarks license agreement and expenses for enforcement against any infringement of the licensed trademarks by third parties. (ix) The Company has entered into a factoring service agreement with Guoneng (Beijing) Commercial Factoring Co., Ltd ( “Guoneng Factoring Company ”). Pursuant to the agreement, Guoneng Factoring Company agreed to provide the Group with factoring services and factoring-related services. For the provision of factoring services by Guoneng Factoring Company to the Group, the financing cost shall not be higher than that determined by an independent third-party factoring company for providing the same kind of services to the Group, and it should be determined on normal commercial terms. When the financing fee determined by the independent third-party factoring company for providing the same kind of services is difficult to obtain, it shall not be higher than the financing fee calculated based on the Loan Prime Rate (LPR) of the PBOC for the same period. For the service fee charged from the provision of other relevant services by Guoneng Factoring Company to the Group, the service fee shall not be higher than that charged by an independent third-party factoring company for providing the same kind of services to the Group, and it should be determined on normal commercial terms. When the service fee charged by the independent third- party factoring company for providing the same kind of services is difficult to obtain, it shall be determined at the cost plus a reasonable profit margin (around 10%).
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2026 Interim Report 149 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with China Energy Group, an associate of China Energy Group, fellow subsidiaries and associates of the Group (Continued) Amounts due from/to China Energy Group, associates of China Energy Group, fellow subsidiaries and associates of the Group: 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Cash and time deposits at bank 70,200 81,151 Accounts and bills receivables 12,431 9,556 Prepaid expenses and other current assets 3,212 2,831 Other non-current assets 492 491 Total amounts due from China Energy Group, associates of China Energy Group, fellow subsidiaries and associates of the Group 86,335 94,029 Borrowings 31,867 39,421 Accounts payable 5,851 5,154 Accrued expenses and other payables 33,772 21,218 Contract liabilities 1,703 758 Long-term liabilities 8,369 12,432 Total amounts due to China Energy Group, associate of China Energy Group, fellow subsidiaries and associates of the Group 81,562 78,983 (b) Key management personnel emoluments Key management personnel receive compensation in the form of fees, basic salaries, housing and other allowances, benefits in kind, discretionary bonuses and retirement scheme contributions. Key management personnel compensation of the Group during the period is summarised as follows: Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB million RMB million Short-term employee benefits 3 4 Total remuneration is included in “personnel expenses ” as disclosed in Note 10.
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China Shenhua Energy Company Limited 150 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (c) Contributions to post-employment benefit plans The Group participates in various defined contribution post-employment benefit plans organised by municipal and provincial governments and a supplemental defined contribution pension plan approved by the government for its employees. Further details of the Group ’s post-employment benefit plans are disclosed in Note 32. (d) Transactions with other government-related entities in the PRC The Company is ultimately controlled by the PRC government and the Group operates in an economic environment currently predominated by government-related entities. Other than those transactions with China Energy Group, associates of China Energy Group, fellow subsidiaries and associates of the Group as disclosed above, the Group conducts business with other government-related entities which include but are not limited to the following: – Power sales; – Sales and purchases of coal; – Transportation services; – Construction work; – Purchases of ancillary materials and spare parts; – Ancillary and social services; and – Financial services arrangements. These transactions are conducted in the ordinary course of the Group ’s business on terms comparable to those with other entities that are not government-related. The Group has established its pricing policies in respect of sale of goods and provision of services, and approval process for purchases of products and services. Such policies and approval process apply to all counterparties regardless of whether the counterparty is government- related or not.
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2026 Interim Report 151 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 30 RELATED PARTY TRANSACTIONS (Continued) (d) Transactions with other government-related entities in the PRC (Continued) Having considered the potential for transactions to be impacted by related party relationships, the Group ’s buying, pricing strategy and approval process, and what information would be necessary for an understanding of the potential effect of the relationship on the financial statements, the Directors are of the opinion that the following transactions with other government-related entities require disclosure: (i) Transactions with other government-related entities, including state-owned banks in the PRC Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) (Restated) RMB million RMB million Coal revenue 57,405 40,601 Power revenue 50,618 48,598 Transportation costs 5,501 4,681 Interest income 511 736 Interest expenses (including amount capitalised) 1,173 1,178 (ii) Balances with other government-related entities, including state-owned banks in the PRC 30 June 2026 31 December 2025 (Unaudited) (Restated) RMB million RMB million Accounts and bills receivables 9,257 10,341 Prepaid expenses and other current assets 3,687 3,847 Cash and time deposits at banks 47,109 39,783 Restricted bank deposits 18,197 20,077 Borrowings 125,761 63,128 Accrued expenses and other payables 1,498 213 Contract liabilities 1,437 2,075
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China Shenhua Energy Company Limited 152 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 31 BUSINESS COMBINATION Business combination under common control During the six months ended 30 June 2026, the Company acquired from China Energy 100% equity interests in Guoyuan Power, Xinjiang Energy, Chemical Company, Wuhai Energy, Pingzhuang Coal, Baotou Mining, Shipping Company, Coal Trading Company and Port Company, 41% equity interest in Shenyan Coal and 49% equity interest in Jinshen Energy, by issuing 1,363 million A shares and paying cash consideration of RMB85,791 million. The Company also acquired from Western Energy 100% equity interest in Inner Mongolia Construction Investment for cash consideration of RMB7,728 million. The Company obtained significant influence over Jinshen Energy through the acquisition of the 49% equity interest and accounted for it as an associate using the equity method, while the other 11 acquired companies, over which the Company obtained control, were accounted for as subsidiaries. Accordingly, the consideration for the business combinations under common control comprised 1,322 million A shares and cash consideration of RMB90,942 million. The par value of each share was RMB1.00. The consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2025 and the consolidated statement of financial position as at 31 December 2025 as previously reported by the Group and the restated amounts presented in the interim condensed consolidated financial statements of the Group are set out below: The Group (As previously stated) The Group (Restated) Effect of business combination RMB million RMB million RMB million Consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2025 Revenue 138,109 37,314 175,423 Profit before income tax 40,013 6,447 46,460 Profit for the period 32,059 5,008 37,067 Consolidated statement of financial position as at 31 December 2025 Total assets 631,777 280,654 912,431 Total liabilities 146,310 153,893 300,203 Total equity 485,467 126,761 612,228
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2026 Interim Report 153 Notes to the Interim Condensed Consolidated Financial Information (Continued) 30 June 2026 31 BUSINESS COMBINATION (Continued) Major non-cash transactions During the six months ended 30 June 2026, the Company issued 1,322,301,165 A shares as consideration for business combinations under common control, 40,947,281 A shares as consideration for the acquisition of a 49% equity interest in Jinshen Energy, an associate of the Group. 32 EMPLOYEE BENEFITS PLAN The Group participates, in line with the regulations of the PRC, mainly in various defined contribution retirement plans organised by municipal and provincial governments for its employees. The Group is required to make contributions to the retirement plans at a certain proportion of the salaries, bonuses and certain allowances of the employees. In addition, as approved by the government, the Group makes contribution to a supplemental defined contribution pension plan for its employees. The fund is managed by a qualified fund manager. The Group has no other material obligation for the payment of pension benefits associated with these plans beyond the annual contributions described above. The Group ’s contributions for the six months ended 30 June 2026 were RMB4,376 million (six months ended 30 June 2025: RMB4,190 million (restated)). 33 EVENTS AFTER THE REPORTING PERIOD After the end of the reporting period, the Board of Directors proposed an interim dividend, the details of which are disclosed in Note 11.
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China Shenhua Energy Company Limited 154 Section IX Documents Available for Inspection Documents Available for Inspection The 2026 interim report bearing the signature of the person-in-charge of the Company The financial statements signed by the person-in-charge of the Company, Chief Financial Officer and person-in-charge of the accounting department, and chopped with the official chop of the Company The original review report issued by the accounting firm The original versions of all documents and announcements of the Company publicly disclosed in the newspapers designated by the CSRC during the Reporting Period The 2026 interim report published on the websites of SSE and the HKEx Person-in-charge of the Company: Zhang Changyan Approval date of the Board of Directors for submission: 28 August 2026