Yanzhou Coal Mining Company Limited

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Yanzhou Coal Mining Company Limited THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in any doubt about any of the contents of this circular or as to what action to take in relation to this circular, you should consult your licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser. If you have sold or transferred all your shares in Yanzhou Coal Mining Company Limited, you should at once hand this circular to the purchaser(s) or to the bank, or a licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or transferee(s). Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, 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 circular. This circular is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities in the Company. 兗州煤業股份有限公司 YANZHOU COAL MINING COMPANY LIMITED (A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1171) (1) DISCLOSEABLE AND CONNECTED TRANSACTION IN RELATION TO THE DEEMED DISPOSAL OF 40.8% EQUITY INTERESTS IN HAINAN INTELLIGENT LOGISTICS; (2) PROPOSAL OF SUPPLEMENTAL AUTHORIZATION FOR THE COMPANY TO CARRY OUT DOMESTIC AND OVERSEAS FINANCING ACTIVITIES; AND (3) PROPOSAL TO INCREASE THE 2020-2024 CASH DIVIDEND RATIO OF THE COMPANY Independent financial adviser to the Independent Board Committee and the Independent Shareholders The notice convening the EGM to be held at the headquarters of the Company at 298 South Fushan Road, Zoucheng, Shandong Province 273500, the PRC at 8:30 a.m. on Wednesday, 9 December 2020 was published on 16 November 2020. Whether or not you are able to attend the meeting in person, you are strongly advised to complete and sign the form of proxy in accordance with the instructions printed thereon. The form of proxy shall be lodged with the Company’s H Share Registrar, Hong Kong Registrars Limited at 17M/F, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong (for holders of H Shares) or the Office of the Secretary to the Board at 298 South Fushan Road, Zoucheng, Shandong Province 273500, the PRC (for holders of A Shares) as soon as possible but in any event not later than 24 hours before the time appointed for the holding of the meeting or any adjourned meeting (as the case may be). Completion and return of the form of proxy will not preclude you from attending and voting in person at the meeting or any adjourned meeting should you so wish. 16 November 2020 CONTENTS Page DEFINITIONS ...................................................... 1 LETTER FROM THE BOARD ......................................... 4 LETTER FROM THE INDEPENDENT BOARD COMMITTEE ............... 18 LETTER FROM THE INDEPENDENT FINANCIAL ADVISER ............... 20 APPENDIX I – SUMMARY OF THE ASSET VALUATION REPORT OF HAINAN INTELLIGENT LOGISTICS ............... I-1 APPENDIX II – FURTHER INFORMATION ON THE ASSET VALUATION REPORT OF HAINAN INTELLIGENT LOGISTICS .................. II-1 APPENDIX III – GENERAL INFORMATION............................. III-1 –i– DEFINITIONS In this circular, unless the context requires otherwise, the following expressions have the following meanings: “A Share(s)” domestic share(s) in the ordinary share capital of the Company, with a nominal value of RMB1.00 each, which are listed on the Shanghai Stock Exchange “Asset Valuation Report” the asset valuation report on Hainan Intelligent Logistics prepared by Shanghai Orient, the summary of the Asset Valuation Report of Hainan Intelligent Logistics is set out in appendix I of this circular “associate(s)” has the meaning ascribed to it under the Listing Rules “Board” the board of Directors of the Company “Capital Increase Agreement” the capital increase agreement dated 23 October 2020 entered into among the Company, Yankuang Group, Taizhong Property, Huaneng Fuel and Hainan Intelligent Logistics “Company” Yanzhou Coal Mining Company Limited(兗州煤業股份 有限公司), a joint stock limited company established under the laws of the PRC in 1997, and the H Shares and A Shares of which are listed on the Stock Exchange and the Shanghai Stock Exchange, respectively “connected person(s)” has the meaning ascribed to it under the Listing Rules “Director(s)” the director(s) of the Company “EGM” the second extraordinary general meeting of 2020 to be held at the headquarters of the Company at 298 South Fushan Road, Zoucheng, Shandong Province 273500, the PRC at 8:30 a.m. on Wednesday, 9 December 2020, to consider and approve, among other things, the Capital Increase Agreement and the transaction contemplated thereunder, the proposal of supplemental authorization for the Company to carry out domestic and overseas financing activities and the proposal to increase the 2020-2024 cash dividend ratio of the Company –1– DEFINITIONS “Group” the Company and its subsidiaries “Hainan Intelligent Logistics” Yankuang (Hainan) Intelligent Logistics Science and Technology Co., Ltd. (兗礦(海南)智慧物流科技有限公 司) “H Share(s)” the overseas listed foreign invested share(s) in the ordinary share capital of the Company with a nominal value of RMB1.00 each, which are listed on the Stock Exchange “Hong Kong” Hong Kong Special Administrative Region of the PRC “Huaneng Fuel” China Huaneng Group Fuel Co., Ltd.(中國華能集團燃料 有限公司) “Independent Board Committee” the board committee comprising all the independent non-executive Directors who are independent in relation to the Capital Increase Agreement and the transaction contemplated thereunder, which is set up to consider the Capital Increase Agreement and the transaction contemplated thereunder “Independent Financial Adviser” Donvex Capital Limited, a corporation licensed to carry or “Donvex Capital” out type 6 (advising on corporate finance) regulated activity under the Securities and Futures Ordinance, which is appointed by the Company as the independent financial adviser to advise the Independent Board Committee and the Independent Shareholders on the Capital Increase Agreement and the transaction contemplated thereunder “Independent Shareholder(s)” Shareholder(s) other than Yankuang Group (including the 391,507,272 A Shares held by the guarantees and trust account opened by Yankuang Group and CITIC Securities Co., Ltd., the voting rights in respect of which are exercisable by CITIC Securities Co., Ltd.) and its associates, who are neither involved nor interested in the Capital Increase Agreement and the transaction contemplated thereunder “Latest Practicable Date” 10 November 2020, being the latest practicable date of ascertaining certain information contained in this circular before the issuing of this circular “Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended from time to time –2– DEFINITIONS “Notice of EGM” the notice for convening the EGM dated 16 November 2020, which has been issued to the Shareholders separately and a copy of which can be downloaded from the Company’s website (www.yanzhoucoal.com.cn) and the website of the Stock Exchange (www.hkex.com.hk) “percentage ratio(s)” has the meaning ascribed to it under the Listing Rules “PRC” the People’s Republic of China “RMB” Renminbi, the lawful currency of the PRC “Shanghai Orient” Shanghai Orient Appraisal Co., Ltd.(上海東洲資產評估 有限公司) “Shareholder(s)” the shareholder(s) of the Company “Stock Exchange” The Stock Exchange of Hong Kong Limited “subsidiary(ies)” has the meaning ascribed to it under the Listing Rules “Taizhong Property” Hainan Taizhong Property Group Co., Ltd.(海南泰中物 產集團有限公司) “Transaction” the transaction contemplated under the Capital Increase Agreement “Working Day(s)” any day(s) except Saturday, Sunday and statutory holiday(s) in the PRC “Yankuang Group” Yankuang Group Company Limited(兗礦集團有限公司), a state-controlled limited liability company and the controlling shareholder of the Company holding directly and indirectly approximately 56.01% of the total issued share capital of the Company as at the Latest Practicable Date “%” per cent –3– LETTER FROM THE BOARD 兗州煤業股份有限公司 YANZHOU COAL MINING COMPANY LIMITED (A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1171) Directors: Registered office: Li Xiyong 298 South Fushan Road Zoucheng Wu Xiangqian Shandong Province Liu Jian PRC Zhao Qingchun Postal Code: 273500 He Jing Wang Ruolin Principal place of business in Hong Kong: 40th Floor, Sunlight Tower Independent non-executive Directors: 248 Queen’s Road East Tian Hui Wanchai Zhu Limin Hong Kong Cai Chang Poon Chiu Kwok 16 November 2020 To the Shareholders Dear Sir or Madam, (1) DISCLOSEABLE AND CONNECTED TRANSACTION IN RELATION TO THE DEEMED DISPOSAL OF 40.8% EQUITY INTERESTS IN HAINAN INTELLIGENT LOGISTICS; (2) PROPOSAL OF SUPPLEMENTAL AUTHORIZATION FOR THE COMPANY TO CARRY OUT DOMESTIC AND OVERSEAS FINANCING ACTIVITIES; AND (3) PROPOSAL TO INCREASE THE 2020-2024 CASH DIVIDEND RATIO OF THE COMPANY I. INTRODUCTION The purpose of this circular is to provide you with the information relating to (1) the discloseable and connected transaction in relation to the deemed disposal of 40.8% equity interests in Hainan Intelligent Logistics; (2) the proposal of supplemental authorization for the Company
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