China Shenhua Energy Company Limited, exclusively initiated by Shenhua Group Corporation Limited (hereinafter referred to as Shenhua Group), was incorporated in Beijing, China on November 8, 2004. H shares and A shares of China Shenhua were listed respectively on the Hong Kong Stock Exchange and the Shanghai Stock Exchange in June 2005 and October 2007.

 

China Shenhua is a world-leading coal-based integrated energy company. Its main business includes production and sales of coal, railway and port transportation of coal-related materials, as well as power generation and sales. China Shenhua, with the largest coal reserves, is largest coal supplier and vendor in China. The Company's coal business has become the model of large-scale, high-efficient, and safe production mode in China’s coal industry.

 

 In 2011, the Company optimized its production organizations in response to market needs, with commercial coal production volume amounting to 281.9 million tonnes (2010: 245.6 million tonnes (restated)), representing a year-on-year increase of 14.8% and completing 109.3% of the annual target; fully leveraging on its transportation and brand advantages, the Company expanded sales coverage and promoted the sales of coal purchased from third parties, with coal sales volume reaching 387.3 million tonnes (2010: 313.1 million tonnes (restated)), representing a year-on-year increase of 23.7%, completing 110.7% of the annual target; seizing the opportunities arising from the inadequate generation of hydro power in Southern China and leveraging on its competitive edge of being an integrated enterprise, the Company stepped up efforts in the sales of electricity, with total power output dispatch reaching 167.61 billion kwh (2010: 131.69 billion kwh (restated)), representing a year-on-year increase of 27.3% and completing 110.3% of the annual target. In 2011, the Company’s transportation business achieved stable growth and its logistic chain operated in peak efficiency, with transportation turnover of self-owned railway reaching 162.3 billion tonne kilometers (2010: 150.3 billion tonne kilometer (restated)), representing a year-on-year growth of 8.0%; seaborne coal sales volume reached 210.1 million tonnes (2010: 170.5 million tonnes (restated)), representing a year-on-year growth of 23.2%; shipping volume amounted to 80.6 million tonnes and shipment turnover reached 71.5 billion tonne nautical miles.

 

In 2011, the Company actively established its strategic financial management model and enhanced cost control and the centralized management of funds, hence further improved the quality of operation.Pursuant to the International Financial Reporting Standards, the revenues of the Group for 2011 were RMB208.197 billion (2010: RMB157.662 billion (restated)), representing a year-on-year increase of 32.1%. Profit attributable to equity shareholders of the Company for the year were RMB45.677 billion (2010: RMB38.834 billion (restated)), representing a year-on-year increase of 17.6%. Basic earnings per share was RMB2.296 (2010: RMB1.952 (restated)), representing a year-on-year increase of 17.6%.As at 31 December 2011, the equity attributable to equity shareholders of the Group per share was RMB11.35 (2010: RMB10.31 (restated)), representing a year-on-year increase of 10.1%.