China Shenhua Energy : 2021 ANNUAL REPORT

Important Notice

• I. The Board, Supervisory Committee and all Directors, Supervisors and senior management of the Company warrant that this report does not contain any misrepresentations, misleading statements or material omissions, and are jointly and severally liable for the authenticity, accuracy and completeness of the information contained in this report.

• II. This report was approved at the twelfth meeting of the fifth session of the Board of the Company. 8 out of 8 Directors attended the meeting in person.

• III. KPMG has issued a standard unqualified independent auditor's report in accordance with the Hong Kong Standards on Auditing on the Company's financial statements for the year 2021 prepared under the International Financial Reporting Standards.

• IV. Wang Xiangxi, Chairman of the Company, Xu Shancheng, 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 a final dividend in cash of RMB2.54 per share (inclusive of tax) for the year 2021 based on the total registered share capital on the equity registration date of the implementation of the equity distribution. The profit distribution proposal is subject to the approval by shareholders at the general meeting. According to the total share capital of 19,868,519,955 shares of the Company as at 31 December 2021, the final dividend totaling RMB50,466 million (inclusive of tax) will be paid.

• VI. Disclaimer of forward-looking statements: The forward-looking statements in this report made on the basis of subjective assumptions and judgments 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. Is there any situation of non-operating appropriation of funds by controlling shareholder(s) and its subsidiaries?: No

• VIII. Is there any situation of violation of decision-making procedures for external guarantee provision?: No

• IX. Whether more than half of the Directors cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the Company?: No

• X. Warning on major risks: impacted by the supply and demand of coal and power generation and the adjustment to industrial policies, the Group is exposed to some uncertainties on achieving the business targets for 2022. In addition, investors please note that the Company has disclosed risks including safe production and environmental protection, market competition, investment, engineering project management, international operation, macroeconomic fluctuations, integrated operation and policy etc. in the section headed "Director's Report".

Contents

Section I	Definitions	3
Section II	Company Profile and Major Financial Indicators	7
Section III	Chairman's Statement	12
Section IV	Directors' Report	14
Section V	Corporate Governance and Corporate Governance Report	80
Section VI	Environmental and Social Responsibility	133
Section VII	Significant Events	146
Section VIII	Changes in Share Capital and Shareholders	171
Section IX	Investor Relations	179
Section X	Independent Auditors' Report and Financial Statements	183
Section XI	Documents Available for Inspection	308
Section XII	Summary of Major Financial Information for the Recent Five Years	309

Section IDefinitions

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 (਷࢕ঐ๕ҳ༟ණྠϞ
ࠢப΂ʮ̡)
China Energy Group	China Energy and its subsidiaries (excluding the Group)
China Guodian	China Guodian Group Co., Ltd. (ʕ਷਷ཥණྠϞࠢʮ̡)
Guodian Group	China Guodian and its subsidiaries
GD Power	GD Power Development Co., Ltd.
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.
Beidian Shengli	Shenhua Beidian Shengli Energy Co., Ltd.
Shuohuang Railway	China Energy Shuohuang Railway Development Co., Ltd.
Railway Equipment	China Energy Railway Equipment Co., Ltd.
Trading Group	China Energy Trading Group Limited
Huanghua Harbour Administration	China Energy Huanghua Harbour Administration Co., Ltd.
Tianjin Harbour Administration	China Energy (Tianjin) Harbour Administration Co., Ltd.
Zhuhai Harbour Administration	China Energy Zhuhai Harbour Administration Co., Ltd.
Shipping Corporation	Guoneng Yuanhai Shipping Co., Ltd.
Baoshen Railway	China Energy Baoshen Railway Group Co., Ltd.
Baotou Energy	China Energy Baotou Energy Co., Ltd.
Yulin Energy	China Energy Yunlin Energy Co., Ltd.
Baotou Coal Chemical	China Energy Baotou Coal Chemical Co., Ltd.
Sichuan Energy	China Energy Sichuan Energy Co., Ltd.
Fujian Energy	Shenhua (Fujian) Energy Co., Ltd.

Section IDefinitions (Continued)

EMM Indonesia

PT.GH EMM INDONESIA

4

Zhunge'er Power	Power-generating division controlled and operated by Zhunge'er
Energy
Shenmu Power	China Energy Shaanxi Shenmu Power Co., Ltd.
Taishan Power	China Energy Yudean Taishan Power Co., Ltd.
Cangdong Power	China Energy Hebei Cangdong Power Co., Ltd.
Jinjie Energy	China Energy Jinjie Energy Co., Ltd.
Dingzhou Power	China Energy Hebei Dingzhou Power Generation Co., Ltd.
Mengjin Power	China Energy Mengjin Thermal Power Co., Ltd.
Jiujiang Power	China Energy Shenhua Jiujiang Power Co., Ltd.
Huizhou Thermal	China Energy (Huizhou) Thermal Power Co., Ltd.
Beijing Gas-fired Power	China Energy Guohua (Beijing) Gas-fired Power Co., Ltd.
Shouguang Power	Shenhua Guohua Shouguang Power Generation Company Limited
Liuzhou Power	China Energy Guangtou (Liuzhou) Power Generation Co., Ltd.
Pembangkitan Jawa	PT. Shenhua Guohua Pembangkitan Jawa Bali
Yongzhou Power	China Energy Group Yongzhou Power Co., Ltd.
Shengli Energy	Shengli Energy Branch of the Company
Guangdong Power Sales Company	China Energy (Guangdong) Power Sales Co., Ltd.
China Shenhua Energy Company Limited