China Shenhua Energy : FURTHER DEVELOPMENT OF PROPOSED IMPLEMENTATION OF JOINT REST...

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

(Stock Code: 01088)

INSIDE INFORMATION FURTHER DEVELOPMENT OF PROPOSED IMPLEMENTATION OF JOINT RESTRUCTURING OF GROUP COMPANIES

This announcement is made pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the announcement issued by China Shenhua Energy Company Limited (the "Company") on 29 August 2017 in relation to proposed change of company name of Shenhua Group Corporation Limited ("Controlling Shareholder"), the controlling shareholder of the Company and proposed implementation of joint restructuring of group companies, and the announcement issued by the Company on 27 November 2017 in relation to completion of industrial and commercial registration of changes by the Controlling Shareholder. The company name of the Controlling Shareholder has been changed to China Energy Investment Corporation Limited (਷ ࢕ঐ๕ҳ༟ණྠϞࠢப΂ʮ̡) ("CHNENERGY"). CHNENERGY will be the parent company after the completion of the restructuring and will merge with China Guodian Corporation ("Guodian Group") by way of merger by absorption of Guodian Group.

On 4 January 2018, the Company received a notice from CHNENERGY, the controlling shareholder of the Company, that on 4 January 2018, CHNENERGY has passed board resolutions to approve the proposal on the merger between CHNENERGY and Guodian Group (the "Merger of the Group Companies") and the Merger Agreement between CHNENERGY and Guodian Group to be entered into, pursuant to which it is agreed that CHNENERGY proposes to merge with Guodian Group by way of merger by absorption of Guodian Group, Guodian Group will be deregistered and CHNENERGY will continue to exist; that from the date of completion of the Merger of the Group Companies, the entire assets, liabilities, business, employees, contracts, qualifications and other rights and liabilities will be inherited and assumed by CHNENERGY, and the subsidiaries under Guadian Group and the equities and interests held by Guodian Group will be transferred to CHNENERGY.

After the completion of the Merger of the Group Companies, CHNENERGY will continue to be the controlling shareholder of the Company.

The Merger of the Group Companies is subject to the compliance with relevant procedural requirements and the receipt of necessary approvals, authorizations and permission from competent regulatory authorities.

By order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors

Beijing, 4 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.