China Unienergy : Announcements and Notices - - INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

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CHINA UNIENERGY GROUP LIMITED

中國優質能源集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1573) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

The board (the "Board") of directors (the "Directors") of CHINA UNIENERGY GROUP LIMITED (the "Company") is pleased to announce the unaudited interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2017 (the "Reporting Period").

FINANCIAL HIGHLIGHTS

• Revenue amounted to approximately RMB310.6 million (six months ended 30 June 2016: RMB298.4 million).

• Sales volume of anthracitic coal amounted to approximately 517,000 tonnes (six months ended 30 June 2016: 486,000 tonnes).

• Gross profit amounted to approximately RMB177.1 million (six months ended 30 June 2016: RMB170.1 million).

• Gross profit margin was 57.0% (six months ended 30 June 2016: 57.0%).

• Profit attributable to owners of the Company amounted to approximately RMB109.6 million (six months ended 30 June 2016: RMB76.5 million).

• Basic earnings per share was RMB0.15 (six months ended 30 June 2016: RMB0.13).

INTERIM RESULTS CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended 30 June
NOTES	2017	2016
RMB'000	RMB'000
(unaudited)	(unaudited)
Revenue	3	310,555	298,373
Cost of sales	(133,429)	(128,301)
Gross profit	177,126	170,072
Other income	2,782	914
Net foreign exchange loss	(559)	-
Distribution and selling expenses	(1,787)	(1,568)
Administrative expenses	(12,020)	(10,375)
Listing expenses	-	(26,144)
Finance costs	(17,654)	(22,555)
Share of loss of a joint venture	(192)	(134)
Profit before taxation	147,696	110,210
Income tax expense	4	(38,123)	(33,729)
Profit and total comprehensive income for the period	5	109,573	76,481
RMB	RMB
Earnings per share
Basic	7	0.15	0.13

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

At	At
30 June	31 December
NOTES	2017	2016
RMB'000	RMB'000
(unaudited)	(audited)
Non-current assets
Property, plant and equipment	286,822	293,982
Mining rights	887,291	896,759
Rehabilitation deposits	17,874	19,874
Deposits paid for acquisition of property, plant and equipment	291	-
Interest in a joint venture	9,345	9,537
Prepaid lease payments - non-current portion	6,344	6,268
1,207,967	1,226,420
Current assets
Inventories	4,876	1,707
Prepaid lease payments - current portion	254	314
Trade and other receivables	8	3,826	81,312
Short-term bank deposits	50,000	130,000
Bank balances	251,313	160,664
310,269	373,997
Current liabilities
Trade and other payables	9	187,270	210,661
Tax payables	25,729	32,569
Bank borrowings - current portion	10	142,300	232,300
355,299	475,530
Net current liabilities	(45,030)	(101,533)
Total assets less current liabilities	1,162,937	1,124,887
Capital and reserves
Share capital	47,988	47,988
Reserves	815,010	705,437
Total equity	862,998	753,425
Non-current liabilities
Provision for restoration and environmental costs	17,536	17,048
Bank borrowings - non-current portion	10	271,450	342,600
Deferred tax liabilities	10,953	11,814
299,939	371,462
1,162,937	1,124,887

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2017

1. GENERAL, LISTING, REORGANISATION AND BASIS OF PRESENTATION AND PREPARATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company was incorporated and registered as an exempted company with limited liability in the Cayman Islands under the Companies Law Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands on 8 January 2014. The shares of the Company have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 13 July 2016 (the "Listing"). The registered office of the Company is located at Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. The principal place of business is located in 31st Floor, Fuzhong International Plaza, Xinhua Road, Nanming District, Guiyang City, Guizhou Province, the People's Republic of China (the "PRC"). Its parent and ultimate holding company is Lavender Row Limited, a limited liability company incorporated in the British Virgin Islands.

The Company is an investment holding company. The principal activities of the Group are the extraction and sale of anthracite coal in the PRC. The Group is holding the mining rights of four anthracite coal mines located in Guizhou Province, the PRC. Three out of the four anthracite coal mines, namely Lasu coal mine, Weishe coal mine and Luozhou coal mine are in commercial production and the remaining one, Tiziyan coal mine is currently under development.

The condensed consolidated financial statements are presented in Renminbi ("RMB"), which is also the functional currency of the Company.

In the preparation of the Listing, the Group underwent a group reorganisation (the "Reorganisation") to rationalise the group structure of the companies now comprising the Group.