China Shenhua Energy : OVERSEAS REGULATORY ANNOUNCEMENT

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.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01088)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

The "Announcement Regarding the Unaudited Balance Sheet and Income Statement of Shenhua Finance Co., Ltd. for the Year 2017" as published in Chinese by China Shenhua Energy Company Limited on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 17 January 2018 is enclosed hereto as overseas regulatory announcement.

By Order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors

Beijing, 16 January 2018

As at the date of this announcement, the Board comprises the following: Dr. Ling Wen, Dr. Han Jianguo and Dr. Li Dong as executive directors, Mr. Zhao Jibin as non-executive director, and Dr. Tam Wai Chu, Maria, Dr. Jiang Bo and Ms. Zhong Yingjie, Christina as independent non-executive directors.

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Stock Code: 601088 Stock Short Name: China ShenhuaNo. of Announcement: Lin 2018-007

China Shenhua Energy Company Limited Announcement Regarding the Unaudited Balance Sheet and Income

Statement of Shenhua Finance Co., Ltd. for the Year 2017

The board of directors and all directors of China Shenhua Energy Company Limited guarantee that the information set out in this announcement does not contain any false statements, misleading representations or material omissions, and severally and jointly accept responsibility as to the truthfulness, accuracy and completeness of the content herein.

Pursuant to the requirements of the Notice in Relation to the Scheduled Disclosure of Unaudited Financial Statements for the Year 2017 by Members of the Interbank Lending Market (Zhong Hui Jiao Gong Gao [2017] No. 68) issued by the National Inter-Bank Funding Center, the balance sheet as at 31 December 2017 (unaudited) and the income statement for the year 2017 (unaudited) of Shenhua Finance Co., Ltd. ("Shenhua Finance Company"), a subsidiary of China Shenhua Energy Company Limited, prepared in accordance with the Accounting Standards for Business Enterprises, have been disclosed on the website of China Money (www.chinamoney.com.cn) recently.

The balance sheet as at 31 December 2017 (unaudited) and the income statement for the year 2017 (unaudited) of Shenhua Finance Company are as follow:

1. Balance Sheet as at 31 December 2017 of Shenhua Finance Company (Unaudited)

Prepared by: Shenhua Finance Company

Unit: RMB

Assets	Closing balance	Opening balance	Liabilities and owners' equity (or shareholders' equity)	Closing balance	Opening balance
Assets:	Liabilities:
Cash and balances with central bank	4,840,600,156.59	5,277,584,461.15	Borrowings from central bank
Deposits with banks	41,047,883,130.03	17,046,172,649.89	Deposits from banks and other financial institutions
Precious metals	Placements from banks and other financial institutions
Placements with banks and other financial institutions	1,500,000,000.00	Financial liabilities held for trading
Financial assets held for trading	52,091,993.27	50,024,149.50	Derivative financial liabilities
Derivative financial assets	Financial assets sold under repurchase agreements
Financial assets held under resale agreements	Deposit from customers	68,902,540,142.45	46,602,699,343.95
Interest receivable	71,732,017.35	99,479,429.96	Accrued staff costs	9,611,389.19	9,430,892.10
Loans and advances to customers	29,477,817,243.82	29,881,112,689.14	Taxes payable	57,789,139.35	47,983,753.35
Available-for-sale financial assets	104,700,000.00	2,350,000,000.00	Interest payable	312,287,424.08	286,628,842.32
Held-to-maturityinvestments	100,406,849.32	Provision
Long-term equity investments	Bonds payable
Investment properties	Deferred tax liabilities
Fixed assets	4,273,130.76	4,985,947.92	Other liabilities	8,621,489.41	433,361,594.63
Intangible assets	2,593,762.48	824,074.26	Total liabilities	69,290,849,584.48	47,380,104,426.35
Deferred tax assets	157,015,862.47	126,853,519.37	Owners' equity (or shareholders' equity):
Other assets	8,525,497.77	117,773,128.06	Paid-in capital (or share capital)	5,000,000,000.00	5,000,000,000.00
Capital reserve	20,891,907.40	16,191,907.40
Less: Treasury shares
Surplus reserve	635,164,300.33	550,454,721.45
Generalreserve	1,098,855,963.97	754,834,600.66
Retained earnings	1,321,877,887.68	1,253,224,393.39
Total owners' equity (or shareholders' equity)	8,076,790,059.38	7,574,705,622.90
Total assets	77,367,639,643.86	54,954,810,049.25	Total liabilities and owners' equity (or shareholders' equity)	77,367,639,643.86	54,954,810,049.25

2. Income Statement for the Year 2017 of Shenhua Finance Company (Unaudited)

Prepared by: Shenhua Finance Company

Unit: RMB

Items	Amount for the period	Amount for the last period
I. Operating income	1,340,478,398.82	1,173,775,074.33
Net interest income	1,278,988,442.88	1,114,382,751.17
Interest income	2,169,310,796.12	1,999,071,163.79
Interest expense	890,322,353.24	884,688,412.62
Net fee and commission income	7,772,143.20	8,716,974.13
Fee and commission income	9,067,638.22	9,939,582.02
Fee and commission expense	1,295,495.02	1,222,607.89
Investment income (loss represented by "-")	21,381,506.85
Including: Income from investments in associates and joint ventures
Gains arising from changes in fair value (losses represented by "-")	2,067,843.77	24,149.50
Exchange gains (losses represented by "-")
Other operating income	30,268,462.12	50,651,199.53
II. Operating expenses	183,563,238.66	120,686,864.14
Business taxes and surcharges	12,003,326.37	26,525,497.80
Operating and administrative expenses	51,776,462.17	48,667,460.21
Impairment losses on assets	119,783,450.12	45,493,906.13
Other operating costs
III. Operating profit (loss represented by "-")	1,156,915,160.16	1,053,088,210.19
Add: Non-operating income	455,251.83	863,695.30
Less: Non-operating expense	13,010,960.44	13,011,990.08
IV. Total profit (total loss represented by "-")	1,144,359,451.55	1,040,939,915.41
Less: Income tax expense	297,263,662.79	263,803,577.02
V. Net profit (net loss represented by "-")	847,095,788.76	777,136,338.39

The above data is unaudited. Investors are hereby reminded of the risks which may result from inappropriate reliance upon or utilization of the information given above.

By order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors

17 January 2018