6 Moon 20 On the day, the National Audit Office released... 35 Central State-owned Enterprises 2016 Announcement of Audit Results on Annual Financial Revenues and Expenditures, etc. This announcement includes centrally-administered state-owned enterprises in the resource and energy sectors, such as the former Shenhua Group Co., Ltd.

In affirmation 35 While central enterprises have achieved notable accomplishments, this audit has revealed that these enterprises still face certain issues in areas such as financial management and accounting, operational management, implementation of the spirit of the Central Government’s Eight-Point Regulation, and compliance with integrity requirements. The audit has also put forward targeted recommendations accordingly. According to the announcement, issues related to enterprise operational management accounted for the largest share of the key problems identified in the audit. These issues primarily involve major economic decision-making and efforts to deepen reform of state-owned enterprises.

As a leading state-owned central enterprise in the mining industry, China Shenhua Group also faces issues in its operational and management practices. According to an announcement by the National Audit Office, the operational and management problems existing at China Shenhua Group Co., Ltd. include: 2014 year to 2016 Year, affiliated with Shenhua Group 16 A coal mine has been cumulatively mining raw coal despite lacking complete licenses and permits. 1.56 hundred million tons; affiliated with 36 A coal mine is mining raw coal beyond its approved production capacity. 1.03 100 million tons. 2014 year to 2016 In that year, Shenhua Group failed to comply with its internal regulations regarding... 5 Hold units and relevant persons accountable for environmental protection issues. 2016 The total price of a project implemented by Shenhua (Fujian) Energy Co., Ltd., which it belongs to, in the year. 4.54 The acquisition project, valued at hundreds of millions of yuan, was not included in the group’s annual investment plan as required. As of... 2016 By year-end, Shenhua Group had failed to complete, as required, tasks including the disposal of inefficient and ineffective assets, exiting the real estate business, streamlining and consolidating its subsidiaries, and implementing reforms in official vehicle use.

The audit and rectification results reported by the National Energy Group on the same day corresponded one-to-one with the identified issues, demonstrating both determination and courage. —— Notice of Incomplete Documentation 16 In a coal mine, 5 The coal mine has all its licenses and permits in order. 5 A coal mine has already obtained a mining permit and is in the process of obtaining a safety production permit. 1 One coal mine has already obtained approval. 3 The relevant permits and licenses for coal mines will be expedited once the policies governing the reform of mineral rights are clarified; the rest... 2 The procedures for several coal mines are currently being submitted. We are earnestly implementing the relevant requirements of the National Development and Reform Commission regarding coal mine production, supply assurance, and market regulation, and arranging and organizing production at each coal mine. We are also instructing all coal-producing enterprises to strictly formulate coal production plans based on their approved production capacities. Furthermore, we are actively working to increase the total compliant production capacity of enterprises through measures such as applying for increases in high-quality capacity, acquiring capacity indicators, and other related efforts. We have already held accountable the personnel responsible at units found to have environmental compliance issues. 4.54 The acquisition project worth hundreds of millions of yuan has been... 2017 Year 12 Moon 20 Added to the group company's daily supplement. 2017 Adjusting the investment plan annually. Shenhua Group has taken a variety of measures—including public listing for transfer, paid transfer of equity interests, government-led compensated buybacks, and targeted development—to actively promote its exit from the real estate business.

State-owned enterprises have long been regarded as the backbone of the real economy. Among them, state-owned mining enterprises are enormous in scale and play a pivotal role both globally and domestically. “ Strong ” A regular fixture on the rankings, often occupying a high position. However, for some time now, central state-owned enterprises have been diverting from their core businesses into the financial sector, while non-real estate-focused central SOEs have entered the real estate sector, sparking concerns about these enterprises. “ Looking around in all directions ”、 “ Shifting from reality to虚 (virtual/illusory) ” The concern.

In fact, as early as 2010 Last year, the State-owned Assets Supervision and Administration Commission of the State Council issued a requirement that... 78 Central state-owned enterprises whose primary business is not real estate are in the process of exiting the property sector. However, years later, many of these centrally-administered enterprises that were originally slated for divestment have not fully withdrawn from the real estate market. This issue remains particularly evident in the recently released audit reports on several non-real-estate-focused central state-owned enterprises. Several of these enterprises have stated that they are taking corrective measures and will indeed exit the real estate business.

Data from the National Bureau of Statistics show that, since the beginning of this year, mining enterprises have seen an increase in profitability. 1~4 Month, the mining industry achieved total profits. 1848.4 100 million yuan, up year-on-year 39% ; Profit margin of mining companies' main business revenue 12.9% , than 2017 Annual increase 3.8 percentage points. Among these, state-owned central enterprises in the mining sector have played an indispensable role. Data released by the State-owned Assets Supervision and Administration Commission of the State Council show that, so far this year... 5 Over the past month, central industrial enterprises achieved a year-on-year increase in total profits. 30.5% The share of profit growth contributed by industrial enterprises among the total profit growth of central enterprises exceeded... 70% While production and operations continue to maintain a steady and positive momentum, the asset-liability ratios of central enterprises have been steadily declining.

Last week, Hao Peng, Secretary of the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council, emphasized during his inspection of central enterprises in Heilongjiang that these enterprises must thoroughly implement the new development philosophy and strive to achieve high-quality development. At the same time, they should focus wholeheartedly on expanding their core businesses, actively explore new markets for production and services, promote the internationalization of their products and technologies, and accelerate the development of new competitive advantages in the global market.

This audit can be described as a comprehensive health checkup for central state-owned enterprises. Mining-related central enterprises should draw lessons from this audit, take the rectification of issues identified in this audit as an opportunity, firmly implement the new development philosophy, strictly and fully comply with the industrial policies formulated by the state, enhance their operational and management capabilities, strengthen their core competitiveness, and thereby contribute to the high-quality development of the mining industry. “ National team ” The role of taking the lead that is rightfully expected. □