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. ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019 The board of directors (the “Board”) of Inner Mongolia Yitai Coal Co., Ltd. (the “Company”) is pleased to announce the annual results of the Company and its subsidiaries (together referred to as the “Group”) for the year ended 31 December 2019. This announcement, containing the extract of the 2019 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of annual results. The full text of the Company’s 2019 Annual Report will be delivered to the shareholders of the Company and available on the websites of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and of the Company at www.yitaicoal.com for perusal in due course. REVIEW OF ANNUAL RESULTS BY THE AUDIT COMMITTEE The audit committee of the Company (the “Audit Committee”), consisting of the Company’s four independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group and the Group’s results for the year ended 31 December 2019. The Audit Committee has also met and discussed with the Company’s external auditor, Da Hua Certified Public Accountants (Special General Partnership), regarding the Group’s audit and financial reporting matters. FINAL DIVIDEND The Board proposed, as calculated based on the total share capital of the Company of 3,254,007,000 shares, the distribution of cash dividend of RMB3.5 per 10 shares (tax inclusive), totalling RMB1,139 million. The 2019 annual general meeting will be convened by the Company on Friday, 8 May 2020 to consider and approve the relevant proposals including the aforesaid proposal on distribution of 2019 final dividend. The Company will distribute the final dividend for 2019 to shareholders of the Company on Monday, 15 June 2020. CLOSURE OF REGISTER OF MEMBERS 1. Record date and dividend distribution for holders of B shares The Company will convene the 2019 annual general meeting on Friday, 8 May 2020. Under relevant regulations of China and the market practice adopted in B share market, the Company will publish a separate announcement in respect of dividend distribution to holders of B shares after the 2019 annual general meeting, which will set out the record date and ex-rights and ex-dividend date of dividend distribution for holders of B shares. 2. Closure of the register of members of H shares The Company will convene the 2019 annual general meeting on Friday, 8 May 2020. The register of members of H Shares of the Company will be closed from 8 April 2020 to 8 May 2020 (both days inclusive). In order to qualify for attending and voting at the annual general meeting, holders of H Shares of the Company should submit all the transfer documents to the Company’s share registrar for H Shares in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong at no later than 4:30 p.m. on 7 April 2020. The register of members of H Shares of the Company will be temporarily scheduled to be closed from 27 May 2020 to 1 June 2020 (both days inclusive). In order to qualify for receiving dividend, holders of H shares of the Company should submit all the transfer documents to the Company’s share registrar for H shares in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, at no later than 4:30 p.m. on 26 May 2020. By order of the Board Inner Mongolia Yitai Coal Co., Ltd.* Zhang Jingquan Chairman Inner Mongolia, the PRC, 20 March 2020 As at the date of this announcement, the executive directors of the Company are Mr. Zhang Jingquan, Mr. Liu Chunlin, Mr. Ge Yaoyong, Mr. Zhang Dongsheng, Mr. Liu Jian, Mr. Lv Guiliang and Mr. Lv Junjie; and the independent non-executive directors of the Company are Mr. Zhang Zhiming, Mr. Huang Sujian, Mr. Wong Hin Wing and Ms. Du Yingfen. * For identification purpose only CONTENTS SECTION I DEFINITIONS 2 SECTION II CORPORATE PROFILE AND MAJOR FINANCIAL INDICATORS 4 SECTION III COMPANY BUSINESS PROFILE 13 SECTION IV REPORT OF THE BOARD OF DIRECTORS 15 SECTION V REPORT OF THE SUPERVISORY COMMITTEE 58 SECTION VI SIGNIFICANT EVENTS 63 SECTION VII CHANGES IN ORDINARY SHARES AND INFORMATION ON SHAREHOLDERS 97 SECTION VIII DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT AND EMPLOYEES 106 SECTION IX CORPORATE GOVERNANCE REPORT 129 SECTION X RELEVANT INFORMATION ON CORPORATE BOND 151 SECTION XI FINANCIAL REPORT 158 APPENDIX I INNER MONGOLIA YITAI COAL CO., LTD. 2019 ANNUAL SOCIAL 403 RESPONSIBILITY REPORT APPENDIX II 2019 ANNUAL INTERNAL CONTROL ASSESSMENT REPORT OF 446 INNER MONGOLIA YITAI COAL CO., LTD. DEFINITIONS I. DEFINITIONS Unless otherwise stated, the following terms shall have the following meanings in this report: Definitions of frequently-used terms Company or the Company Inner Mongolia Yitai Coal Co., Ltd.* (內蒙古伊泰煤炭股份有限公司) Yitai Group Inner Mongolia Yitai Group Co., Ltd. (內蒙古伊泰集團有限公司) Yitai HK Yitai (Group) Hong Kong Co., Ltd. (伊泰(集團)香港有限公司) Suancigou Mine Suancigou coal mine of Inner Mongolia Yitai Jingyue Suancigou Mining Co., Ltd. (內蒙古伊泰京粵酸刺溝礦業有限責任公司) Talahao Mine Inner Mongolia Yitai Coal Co., Ltd. Talahao Mine (內蒙古伊泰煤炭股份有限公司塔拉壕煤礦) Baoshan Mine Baoshan coal mine of Inner Mongolia Yitai Baoshan Coal Co., Ltd. (內蒙古伊泰寶山煤炭有限責任公司) Dadijing Mine Dadijing coal mine of Inner Mongolia Yitai Dadi Coal Co., Ltd. (內蒙古伊泰大地煤炭有限公司) Nalinmiao Mine No. 1 Inner Mongolia Yitai Coal Co., Ltd. Nalinmiao Mine No. 1 (內蒙古伊泰煤炭股份有限公司納林廟煤礦一號井) Nalinmiao Mine No. 2 Inner Mongolia Yitai Coal Co., Ltd. Nalinmiao Mine No. 2 (內蒙古伊泰煤炭股份有限公司納林廟煤礦二號井) Hongjingta Mine No. 1 Inner Mongolia Yitai Coal Co., Ltd. Hongjingta Mine No. 1 (內蒙古伊泰煤炭股份有限公司宏景塔一礦) Kaida Mine Inner Mongolia Yitai Coal Co., Ltd. Kaida Mine (內蒙古伊泰煤炭股份有限公司凱達煤礦) Baijialiang Mine Inner Mongolia Yitai Coal Co., Ltd. Baijialiang Mine (內蒙古伊泰煤炭股份有限公司白家梁煤礦) Yili Mining Yitai Yili Mining Co., Ltd. (伊泰伊犁礦業有限公司) Huzhun Railway Company Inner Mongolia Yitai Huzhun Railway Co., Ltd. (內蒙古伊泰呼准鐵路有限公司) * for identification purpose only 2 Inner Mongolia Yitai Coal Co., Ltd. 2019 Annual Report DEFINITIONS (Continued) I. DEFINITIONS (Continued) Definitions of frequently-used terms (Continued) Yitai Chemical Inner Mongolia Yitai Chemical Co., Ltd. (內蒙古伊泰化工有限責任公司) Coal-to-oil Company Inner Mongolia Yitai Coal-to-oil Co., Ltd. (內蒙古伊泰煤製油有限責任公司) Yili Energy Yitai Yili Energy Co., Ltd. (伊泰伊犁能源有限公司) Yitai Xinjiang Yitai Xinjiang Energy Co., Ltd. (伊泰新疆能源有限公司) Yitai Petrochemical Inner Mongolia Yitai Petrochemical Co., Ltd. (內蒙古伊泰石油化工有限公司) 2019 Annual Report Inner Mongolia Yitai Coal Co., Ltd. 3 CORPORATE PROFILE AND MAJOR FINANCIAL INDICATORS I. CORPORATE INFORMATION Chinese name of the Company 內蒙古伊泰煤炭股份有限公司 Chinese abbreviation 伊泰B股/伊泰煤炭 English name of the Company INNER MONGOLIA YITAI COAL CO., LTD. English abbreviation IMYCC/Yitai Coal Legal representative Zhang Jingquan Members of the Board Executive Directors Zhang Jingquan (Chairman) Liu Chunlin Ge Yaoyong Zhang Dongsheng Liu Jian Lv Guiliang Lv Junjie Independent non-executive Directors Zhang Zhiming Huang Sujian Wong Hin Wing Du Yingfen Members of the Strategy Committee Zhang Jingquan (Chairman) Liu Chunlin Ge Yaoyong Zhang Dongsheng Liu Jian Lv Guiliang Lv Junjie Zhang Zhiming Huang Sujian Wong Hin Wing Du Yingfen Members of the Audit Committee Du Yingfen (Chairman) Zhang Zhiming Huang Sujian Wong Hin Wing 4 Inner Mongolia Yitai Coal Co., Ltd. 2019 Annual Report CORPORATE PROFILE AND MAJOR FINANCIAL INDICATORS (Continued) I. CORPORATE INFORMATION (Continued) Members of the Nomination Committee Zhang Zhiming (Chairman) Zhang Jingquan Liu Chunlin Lv Junjie Huang Sujian Wong Hin Wing Du Yingfen Members of the Remuneration and Appraisal Committee Huang Sujian (Chairman) Zhang Jingquan Liu Chunlin Lv Junjie Zhang Zhiming Wong Hin Wing Du Yingfen Members of the Production Committee Zhang Jingquan (Chairman) Ge Yaoyong Lv Junjie Huang Sujian Du Yingfen Members of the Supervisory Committee Zhang Zhenjin (Chairman) Liu Xianghua Jia Xiaolan (resigned on 14 January 2020) Zhang Wei (appointed on 14 January 2020) Li Cailing He Peixun Wang Yongliang Wu Qu Authorized Representatives Liu Chunlin Zhao Xin Alternative Authorized Representative Wong Wai Ling Company Secretary Zhao Xin 2019 Annual Report Inner Mongolia Yitai Coal Co., Ltd. 5 CORPORATE PROFILE AND MAJOR FINANCIAL INDICATORS (Continued) II. CONTACT PERSONS AND CONTACT METHODS Board Secretary Securities Affairs Representative Name Zhao Xin Li Yuan Address Yitai Building, North Tianjiao Road, Yitai Building, North Tianjiao Road, Dongsheng District, Ordos, Inner Mongolia Dongsheng District, Ordos, Inner Mongolia Telephone 0477-8565731 0477-8565733 Facsimile 0477-8565415 0477-8565415 E-mail [email protected] [email protected] III. BASIC INFORMATION OF THE COMPANY Registered address North Tianjiao Road, Dongsheng District, Ordos, Inner Mongolia Postal code of the registered address 017000 Office address Yitai Building, North Tianjiao Road, Dongsheng District,