Financial Performance - Net profit attributable to shareholders increased by 14.48% to CNY 1,213,098,417.18 year-to-date[5] - Operating revenue for the first nine months rose by 1.79% to CNY 19,247,971,532.51 compared to the same period last year[5] - Basic earnings per share increased by 14.38% to CNY 0.700[5] - Net profit for the reporting period was CNY 131,743.29 million, an increase of 16.31% compared to the previous year, primarily due to revenue growth and improved gross margins in the coal machinery segment[13] - Total operating revenue for Q3 2020 reached ¥6,939,434,959.67, a 12.2% increase from ¥6,185,470,993.80 in Q3 2019[25] - Net profit for Q3 2020 was ¥111,640,095.33, down 67.7% from ¥345,709,828.37 in Q3 2019[26] - The total profit for Q3 2020 was CNY 912,677,115.73, a significant increase from CNY 502,979,273.06 in the same period last year, representing an increase of 81.3%[29] Assets and Liabilities - Total assets increased by 8.63% to CNY 32,277,660,131.29 compared to the end of the previous year[5] - Total liabilities increased to ¥18,333,870,068.92 from ¥16,570,351,777.52, representing a growth of approximately 10.7% year-over-year[20] - The company's total non-current liabilities increased to ¥2,061,552,816.51 from ¥782,565,507.74, showing a growth of approximately 163.5%[23] - The company's retained earnings grew to ¥7,077,041,333.42 from ¥5,453,982,969.12, representing an increase of approximately 29.7%[23] Cash Flow - Cash flow from operating activities decreased by 56.78% to CNY 819,713,909.53 year-to-date[5] - The cash flow from operating activities for the first three quarters was CNY 81,971.39 million, a decrease of 56.78% compared to the same period last year, mainly due to reduced cash receipts from sales[10] - The cash inflow from operating activities totaled CNY 17,778,974,259.46 for Q3 2020, compared to CNY 20,214,770,494.31 in Q3 2019, reflecting a decrease of 12.0%[30] - The company experienced a net cash outflow from operating activities of ¥650,608,176.74, compared to a net inflow of ¥963,725,489.83 in the previous year[32] Shareholder Information - The company had a total of 46,181 shareholders at the end of the reporting period[7] - The largest shareholder, Henan Machinery Equipment Investment Group, holds 30.08% of the shares[7] Expenses - Management expenses rose to CNY 147,930.92 million, a 75.65% increase year-on-year, mainly due to provisions for long-term incentive bonuses and restructuring costs[12] - The company's management expenses increased to ¥888,229,952.92 in Q3 2020, compared to ¥267,068,763.42 in Q3 2019, reflecting a rise of 232.5%[25] Market and Product Development - The company has not disclosed any significant new product developments or market expansion strategies in this report[8] - The company is actively pursuing business restructuring to improve profitability amid declining market demand due to the COVID-19 pandemic[15] Segment Performance - The coal machinery segment generated revenue of CNY 865,797.42 million, up 27.54% year-on-year, driven by increased demand for intelligent mining equipment due to favorable national policies[11] - The automotive parts segment reported revenue of CNY 1,059,692.90 million, a decrease of 12.58% year-on-year, impacted by a decline in the global automotive market due to the COVID-19 pandemic[11] Financial Adjustments - The company adjusted the exercise price of its 2019 stock option incentive plan from CNY 5.98 to CNY 5.795 per share[14] - The company reported a credit impairment loss of CNY 5,137.07 million, which was an increase of 164.24% year-on-year, primarily due to increased bad debt provisions[13]

Company Overview - Zhengzhou Coal Mining Machinery Group Company Limited is the largest hydraulic roof support manufacturer in China, focusing on coal mining and excavating equipment[3]. Financial Performance - The company reported a significant increase in sales, with a year-on-year growth of 15% in the first half of 2020[5]. - In the first half of 2020, the company's revenue was RMB12,315.47 million, a year-on-year decline of 3.21, while net profit attributable to the parent company was RMB1,135.17 million, representing a year-on-year increase of 55.35%[10]. - For the six months ended June 30, 2020, the Group achieved sales revenue of RMB12,315.47 million, a decrease of 3.21% compared to the same period last year[48]. - Profit attributable to owners of the Company was RMB1,135.17 million, representing an increase of 55.35% from the corresponding period of last year[48]. - Earnings per share for the period was RMB0.66[48]. - The total comprehensive income for the period was RMB1,108.30 million, compared to RMB796.80 million for the same period in 2019[54]. - The gross profit for the period was RMB3,163.39 million, compared to RMB2,427.68 million for the same period in 2019[54]. - Profit before tax increased by 52.61% from RMB995.41 million for the six months ended June 30, 2019, to RMB1,519.09 million for the six months ended June 30, 2020[59]. - The company reported a profit for the period of RMB1,205.79 million, compared to RMB786.99 million for the six months ended June 30, 2019[59]. Research and Development - Research and development capabilities are a key strength, contributing to the launch of new products in the hydraulic support segment[3]. - The company plans to invest approximately RMB 100 million in new technology development over the next two years[5]. - The company is focusing on developing intelligent products and has been upgrading existing technologies and products to push towards unmanned coal mining[14]. - The company is advancing R&D in intelligent control technology, completing the development of a pump station and three-machine control system, and enhancing its smart mining system based on industrial internet platforms[28]. - Research and development expenses for the period were RMB (535.98) million, compared to RMB (501.60) million in the previous year[54]. Market Expansion and Strategy - The company aims to expand its market presence in Southeast Asia, targeting a 20% increase in exports by 2021[5]. - A strategic focus on auto parts manufacturing has led to a 10% increase in revenue from this segment compared to the previous year[5]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[5]. - The company is prioritizing the shift of R&D and manufacturing to low-cost regions to reduce operating costs[19]. - The company is implementing a strategy of integrating top-level design, training, operation, and maintenance to enhance service delivery and customer satisfaction[14]. Sustainability and Corporate Social Responsibility - The company is committed to sustainability and aims to reduce its carbon footprint by 15% over the next five years through innovative practices[5]. - During the reporting period, the company donated RMB2 million to epidemic prevention efforts and facilitated individual donations from staff, demonstrating its corporate social responsibility[34]. Corporate Governance - The company has established robust group management and risk control systems to ensure compliance with laws and regulations, enhancing internal control capabilities[27]. - The company has adopted the Model Code for Securities Transactions by Directors as its code of conduct regarding securities transactions[83]. - The company has appointed three independent non-executive directors with appropriate professional qualifications as required under the Listing Rules[89]. - The company has complied with the Corporate Governance Code throughout the review period, except for the composition of the Nomination Committee after the resignation of an independent director[108]. Cash Flow and Financial Position - As of June 30, 2020, the Group had borrowing balances of RMB3,729.89 million[48]. - The Group's capital expenditure for the acquisition of properties, plants, equipment, intangible assets, and land use rights was RMB416.41 million for the period[71]. - Cash and cash equivalents decreased to RMB2,609.35 million from RMB3,863.43 million as of December 31, 2019[74]. - The Group's total liabilities as of June 30, 2020, amounted to RMB16,861,886, an increase from RMB16,676,605 as of December 31, 2019, representing a growth of 1.11%[124]. - The company reported a net cash generated from financing activities of RMB105,739, compared to RMB31,216 in 2019[141]. Segment Performance - The coal mining machinery segment recorded revenue and profit growth, while the SEG auto motors business faced operational pressure due to the global automotive industry's downturn[10]. - The sales of hydraulic roof supports contributed RMB6,573,150,000 to the total revenue for the period[167]. - Revenue from the PRC was RMB8,713,793, an increase from RMB7,382,121 in 2019, while revenue from Germany and other countries decreased[180]. - Segment revenue from the manufacture of coal mining machinery was RMB5,696,251, while revenue from the manufacture of auto parts was RMB6,619,217[172]. Financial Risks - The Group is exposed to cash flow interest rate risk from variable-rate borrowings and currently does not have a specific policy to manage this risk[79]. - The Group faces foreign exchange risk primarily with respect to USD/RMB, EUR/RMB, and HKD/RMB currency pairs[79]. - The Group has implemented policies to manage credit risk, ensuring sales are made to reputable customers with appropriate financial strength[76]. Shareholder Information - As of June 30, 2020, the total number of shareholders was 51,268, comprising 51,188 holders of A shares and 80 holders of H shares[92]. - The State-owned Assets Supervision and Administration Commission of Henan Provincial People's Government held 521,087,800 A shares, representing approximately 34.99% of the relevant class of capital and 30.08% of the total number of shares[94]. - The Company did not propose any interim dividend for the six months ended June 30, 2020[95].

2020 年半年度报告 公司代码：601717 公司简称：郑煤机 郑州煤矿机械集团股份有限公司 2020 年半年度报告 1 / 167 2020 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人焦承尧、主管会计工作负责人黄花及会计机构负责人（会计主管人员）王景波声 明：保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中涉及公司经营和发展战略等未来计划的前瞻性陈述不构成公司对投资者的实质承诺， 敬请投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 公司已在本报告中详细描述存在的风险因素，敬请查阅第四节"经营情况讨论与分析"之"三、 其他披露事项"之"（二）可能面对的风险"部分。 ...

Financial Performance - The company's operating revenue for 2019 was ¥25,721,227,169.72, a decrease of 1.12% compared to ¥26,011,729,865.64 in 2018[15] - The net profit attributable to shareholders of the listed company was ¥1,040,253,246.73, representing an increase of 24.98% from ¥832,343,630.97 in the previous year[15] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥820,027,184.50, up 39.66% from ¥587,180,085.90 in 2018[15] - The net cash flow from operating activities was ¥2,852,217,599.45, an increase of 131.55% compared to ¥1,231,807,639.56 in 2018[15] - Basic earnings per share increased by 25.00% to CNY 0.60 in 2019 from CNY 0.48 in 2018[17] - The weighted average return on equity rose by 1.30 percentage points to 8.78% in 2019 compared to 7.48% in 2018[17] - The company achieved operating revenue of CNY 25.72 billion in 2019, a decrease of 1.12% year-on-year[48] - The net profit attributable to the parent company was CNY 1.04 billion, an increase of 24.98% year-on-year[48] Cash Flow and Investments - The company reported a significant increase in cash flow from operating activities, reaching CNY 2.85 billion, up 131.55% year-on-year[49] - Cash inflow from investment activities amounted to ¥2,418,592,813.49, compared to ¥658,558,756.38 in the previous year, marking an increase of approximately 267%[200] - Total cash outflow from investment activities was ¥4,457,555,250.86, up from ¥2,532,737,809.49, reflecting an increase of about 76%[200] - Net cash flow from investment activities was -¥2,038,962,437.37, worsening from -¥1,874,179,053.11, indicating a decline in investment performance[200] - Cash inflow from financing activities reached ¥2,807,785,314.95, an increase from ¥2,036,391,565.11, representing a growth of approximately 38%[200] - Cash outflow from financing activities totaled ¥2,585,262,287.64, significantly higher than ¥521,547,921.91, indicating an increase of about 397%[200] Assets and Liabilities - The total assets at the end of 2019 were ¥29,712,598,520.15, a 7.30% increase from ¥27,690,854,793.24 at the end of 2018[16] - The total liabilities as of December 31, 2019, were not specified but are critical for assessing the company's financial health[186] - Total liabilities reached ¥16,570,351,777.52, up from ¥15,400,010,112.18, reflecting a growth of around 7.6%[188] - Cash and cash equivalents amounted to ¥3,069,114,777.71, compared to ¥2,096,742,420.76, marking a significant increase of approximately 46.4%[189] - Accounts receivable decreased to ¥1,334,700,077.28 from ¥1,517,447,975.61, a decline of about 12.0%[189] - Inventory stood at ¥1,539,897,898.55, slightly down from ¥1,566,518,976.00, representing a decrease of approximately 1.7%[189] Research and Development - Total R&D investment amounted to CNY 1.33 billion, representing 5.16% of total revenue, with 2,014 R&D personnel, accounting for 11.69% of the total workforce[59] - The company has a strong focus on technological innovation, having pioneered the domestic development of high-end hydraulic supports, which have replaced imports[28] - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product efficiency[147] - Research and development expenses for 2019 were approximately ¥993.92 million, a decrease of 3.81% from ¥1.03 billion in 2018[194] Market and Industry Insights - The company operates in two main business segments: coal mining machinery and automotive parts, focusing on production, sales, and service[23] - In 2019, China's coal production reached 3.85 billion tons, a year-on-year increase of 4.0%, while the coal mining and washing industry achieved main business revenue of 2.4789 trillion yuan, up 3.2%[24] - The coal machinery industry is experiencing increased competition and a trend towards automation and intelligence, expanding opportunities for the company[24] - The automotive industry is facing pressure due to the COVID-19 pandemic, impacting overall demand and production capabilities[73] Corporate Governance and Compliance - The company has provided a standard unqualified audit report from its accounting firm, indicating the accuracy of its financial statements[3] - The company has established a risk management system to monitor business operations and ensure compliance and asset safety[80] - The company has implemented a stock option incentive plan, which was approved during the second extraordinary general meeting of 2019[165] - The company is focused on enhancing its corporate governance structure, ensuring compliance with relevant laws and regulations, and maintaining clear responsibilities among shareholders, the board, and management[162] Social Responsibility and Environmental Initiatives - The company is actively engaged in social responsibility initiatives, including targeted poverty alleviation efforts[121] - The company invested over RMB 10 million to establish a comprehensive wastewater treatment facility with a daily processing capacity of 600 tons[124] - The company has implemented effective pollution control measures, with investments of approximately RMB 30 million for air pollution control facilities[124] - The company has established an emergency response plan for environmental pollution incidents, ensuring timely and effective management to minimize casualties and property losses[126] Employee and Management Information - The total number of employees in the company and its major subsidiaries is 17,230, with 2,595 in the parent company and 14,635 in major subsidiaries[157] - The company has established a diversified salary distribution mechanism, including annual salary systems for middle and senior management, project-based salaries for technical staff, and performance-based commissions for sales personnel[159] - The company has a comprehensive training system that aligns training with assessment, usage, and compensation, ensuring all employees participate in training programs[160] - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 25.3037 million yuan[154]

[Important Notice](index=3&type=section&id=Important%20Notice) The company's board, supervisors, and senior management, along with key financial officers, guarantee the accuracy and completeness of this unaudited quarterly report - The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or material omissions[3](index=3&type=chunk) - The company's responsible person, chief financial officer, and head of accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements in this quarterly report[3](index=3&type=chunk) - This company's Q1 2020 report is unaudited[3](index=3&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) This section provides an overview of the company's key financial performance, shareholder structure, and confirms the absence of preferred shareholders [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2020, the company's operating revenue decreased by **6.50%** year-on-year to **CNY 5.94 billion**, while net profit attributable to shareholders increased by **6.34%** to **CNY 402 million**, and net cash flow from operating activities turned negative, significantly declining by **109.03%** year-on-year Key Financial Data for Q1 2020 | Indicator | 2020 Q1 | 2019 Q1 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 5,941,232,246.25 | 6,353,938,114.62 | -6.50 | | Net Profit Attributable to Shareholders (CNY) | 401,914,619.43 | 377,968,496.38 | 6.34 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 429,330,597.44 | 354,261,395.32 | 21.19 | | Net Cash Flow from Operating Activities (CNY) | -19,571,088.73 | 216,669,314.26 | -109.03 | | Basic Earnings Per Share (CNY/share) | 0.232 | 0.218 | 6.42 | Balance Sheet End-of-Period Data | Indicator | March 31, 2020 | December 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 28,947,411,178.21 | 29,712,598,520.15 | -2.58 | | Net Assets Attributable to Shareholders (CNY) | 12,527,549,342.15 | 12,239,731,257.55 | 2.35 | - Total non-recurring gains and losses for the reporting period amounted to **-CNY 27.42 million**, primarily due to fair value changes and investment income from trading financial assets and liabilities, with losses reaching **-CNY 91.63 million**[5](index=5&type=chunk) [Shareholder Information](index=5&type=section&id=2.2%20Shareholder%20Information) As of the end of the reporting period, the company had **54,149 shareholders**, with the top two being Henan Machinery Equipment Investment Group Co., Ltd. holding **30.08%** and HKSCC NOMINEES LIMITED holding **12.73%** - As of the end of the reporting period, the company had a total of **54,149 shareholders**[6](index=6&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Henan Machinery Equipment Investment Group Co., Ltd. | 521,087,800 | 30.08 | | HKSCC NOMINEES LIMITED | 220,520,990 | 12.73 | | Henan Asset Management Co., Ltd. | 59,314,242 | 3.42 | | Central Huijin Asset Management Co., Ltd. | 28,608,500 | 1.65 | | Li Jun | 25,891,300 | 1.49 | [Preferred Shareholder Information](index=6&type=section&id=2.3%20Preferred%20Shareholder%20Information) The company had no preferred shareholders during the reporting period - The company has no preferred shareholders[7](index=7&type=chunk) [Significant Events](index=6&type=section&id=Significant%20Events) This section details significant changes in key financial statement items and business segment performance, while noting no major event progress, unfulfilled commitments, or performance warnings [Analysis of Major Changes in Key Financial Statement Items and Financial Indicators](index=6&type=section&id=3.1%20Analysis%20of%20Major%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Financial%20Indicators) During the reporting period, the company's financial position was influenced by multiple factors, with significant fluctuations in trading financial assets and liabilities on the balance sheet, and substantial declines across all cash flow indicators; the coal machinery segment showed strong performance, while the automotive parts segment experienced significant revenue and profit declines due to the COVID-19 pandemic, leading to an overall revenue decrease [Major Changes in Balance Sheet and Cash Flow Statement Items](index=6&type=section&id=3.1.1%20Major%20Changes%20in%20Balance%20Sheet%20and%20Cash%20Flow%20Statement%20Items) At the end of the reporting period, trading financial assets increased by **41.97%** due to new wealth management products, while trading financial liabilities surged by **1,979.54%** influenced by exchange rate and commodity hedging activities; net cash flows from operating, investing, and financing activities all turned negative, decreasing by **109.03%**, **172.97%**, and **130.93%** year-on-year respectively, primarily due to reduced sales collections, increased purchases of wealth management products, and higher bank loan repayments Major Changes in Balance Sheet and Cash Flow Statement Items | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | **Balance Sheet Items** | | | | Trading Financial Assets | 41.97 | Primarily due to new wealth management products | | Prepayments | 50.84 | Primarily due to increased prepayments for steel and other materials for coal mining comprehensive mining equipment | | Trading Financial Liabilities | 1,979.54 | Primarily due to SEG exchange rate and commodity risk hedging business impact | | Deferred Income | 54.07 | Primarily due to receiving support funds for Zhengzhou Coal Mining Machinery Group's high-end hydraulic support production base project | | **Cash Flow Statement Items** | | | | Net Cash Flow from Operating Activities | -109.03 | Primarily due to decreased cash received from sales of goods and provision of services | | Net Cash Flow from Investing Activities | -172.97 | Primarily due to purchase of wealth management products | | Net Cash Flow from Financing Activities | -130.93 | Primarily due to decreased bank borrowings and increased repayment of bank borrowings | [Analysis of Revenue and Profit by Business Segment](index=6&type=section&id=3.1.2%20Analysis%20of%20Revenue%20and%20Profit%20by%20Business%20Segment) The company's two major business segments showed significant performance divergence; the coal machinery segment performed strongly with revenue increasing by **19.38%** and net profit surging by **81.15%** year-on-year, while the automotive parts segment, impacted by the global COVID-19 pandemic, saw revenue decline by **18.73%** and net profit plummet by **334.45%** from a profit to a loss, primarily due to decreased sales, exchange rate hedging losses, and inventory impairment losses Total Operating Revenue by Business Segment (CNY 10,000) | Business Segment | 2020 Q1 | 2019 Q1 | Change (%) | | :--- | :--- | :--- | :--- | | Coal Machinery Segment | 243,929.65 | 204,338.45 | 19.38 | | Automotive Parts Segment | 350,327.81 | 431,055.36 | -18.73 | | **Total** | **594,257.46** | **635,393.81** | **-6.47** | Net Profit by Business Segment (CNY 10,000) | Business Segment | 2020 Q1 | 2019 Q1 | Change (%) | | :--- | :--- | :--- | :--- | | Coal Machinery Segment | 63,490.30 | 35,048.00 | 81.15 | | Automotive Parts Segment | -18,783.80 | 8,011.79 | -334.45 | | **Total** | **42,243.23** | **40,790.00** | **3.56** | - The decline in revenue for the automotive parts segment was primarily due to the continuous decline in domestic and international automobile production and sales, impacted by the COVID-19 pandemic[11](index=11&type=chunk) - The significant increase in net profit for the coal machinery segment was mainly attributed to increased sales revenue and improved gross profit margin on product sales[11](index=11&type=chunk) [Progress of Significant Events](index=8&type=section&id=3.2%20Progress%20of%20Significant%20Events%20and%20Analysis%20of%20Their%20Impact%20and%20Solutions) During the reporting period, the company had no significant events requiring disclosure of their progress - Not applicable[12](index=12&type=chunk) [Overdue Unfulfilled Commitments](index=8&type=section&id=3.3%20Overdue%20Unfulfilled%20Commitments%20During%20the%20Reporting%20Period) During the reporting period, the company had no overdue unfulfilled commitments - Not applicable[12](index=12&type=chunk) [Performance Forecast Warning](index=8&type=section&id=3.4%20Warning%20and%20Explanation%20of%20Potential%20Cumulative%20Net%20Loss%20or%20Significant%20Change%20from%20Prior%20Period%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company has not issued any warnings regarding significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period - Not applicable[12](index=12&type=chunk) [Appendix](index=9&type=section&id=Appendix) This appendix includes the company's unaudited consolidated and parent company financial statements, with no new accounting standard adjustments or retrospective data provided, and confirms the report is unaudited [Financial Statements](index=9&type=section&id=4.1%20Financial%20Statements) This appendix contains the company's unaudited consolidated and parent company financial statements for Q1 2020, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=9&type=section&id=4.1.1%20Consolidated%20Balance%20Sheet) As of March 31, 2020, the company's consolidated total assets were **CNY 28.95 billion**, a **2.58%** decrease from the end of the previous year; total liabilities were **CNY 15.50 billion**; and total equity attributable to parent company owners was **CNY 12.53 billion**, a **2.35%** increase from the end of the previous year Key Items from Consolidated Balance Sheet (CNY) | Item | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 28,947,411,178.21 | 29,712,598,520.15 | | Total Liabilities | 15,496,828,654.68 | 16,570,351,777.52 | | Total Equity Attributable to Parent Company Owners | 12,527,549,342.15 | 12,239,731,257.55 | [Parent Company Balance Sheet](index=11&type=section&id=4.1.2%20Parent%20Company%20Balance%20Sheet) As of March 31, 2020, the parent company's total assets were **CNY 18.46 billion**, total liabilities were **CNY 5.64 billion**, and total owner's equity was **CNY 12.82 billion** Key Items from Parent Company Balance Sheet (CNY) | Item | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 18,461,001,179.98 | 18,481,969,760.40 | | Total Liabilities | 5,642,344,824.47 | 6,192,544,367.02 | | Total Owner's Equity | 12,818,656,355.51 | 12,289,425,393.38 | [Consolidated Income Statement](index=14&type=section&id=4.1.3%20Consolidated%20Income%20Statement) In Q1 2020, the company achieved total operating revenue of **CNY 5.94 billion**, a **6.47%** year-on-year decrease; net profit was **CNY 422 million**, a **3.56%** year-on-year increase; net profit attributable to parent company shareholders was **CNY 402 million**, a **6.34%** year-on-year increase; and basic earnings per share were **CNY 0.232** Key Items from Consolidated Income Statement (CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | I. Total Operating Revenue | 5,942,574,553.80 | 6,353,938,114.62 | | III. Operating Profit | 564,843,619.77 | 501,293,693.22 | | V. Net Profit | 422,432,315.73 | 407,900,033.45 | | Net Profit Attributable to Parent Company Shareholders | 401,914,619.43 | 377,968,496.38 | | Basic Earnings Per Share (CNY/share) | 0.232 | 0.218 | [Parent Company Income Statement](index=15&type=section&id=4.1.4%20Parent%20Company%20Income%20Statement) In Q1 2020, the parent company achieved operating revenue of **CNY 1.66 billion**, a **9.61%** year-on-year increase; and net profit of **CNY 529 million**, a **32.81%** year-on-year increase Key Items from Parent Company Income Statement (CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | I. Operating Revenue | 1,664,426,096.12 | 1,518,532,896.46 | | II. Operating Profit | 618,256,426.07 | 439,192,935.21 | | IV. Net Profit | 529,230,962.13 | 398,499,272.42 | [Consolidated Cash Flow Statement](index=17&type=section&id=4.1.5%20Consolidated%20Cash%20Flow%20Statement) In Q1 2020, the company's net cash flow from operating activities was **-CNY 19.57 million**, turning negative year-on-year; net cash flow from investing activities was **-CNY 798 million**, indicating a significant increase in outflow; net cash flow from financing activities was **-CNY 169 million**, also turning negative year-on-year; and the cash and cash equivalents balance at period-end was **CNY 2.84 billion** Key Items from Consolidated Cash Flow Statement (CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -19,571,088.73 | 216,669,314.26 | | Net Cash Flow from Investing Activities | -797,738,015.04 | -292,247,617.89 | | Net Cash Flow from Financing Activities | -168,639,081.49 | 545,306,758.61 | | Cash and Cash Equivalents at Period-End | 2,835,864,209.06 | 3,233,409,286.92 | [Parent Company Cash Flow Statement](index=18&type=section&id=4.1.6%20Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, the parent company's net cash flow from operating activities was **-CNY 51.83 million**, net cash flow from investing activities was **-CNY 639 million**, and net cash flow from financing activities was **CNY 83.51 million**; the cash and cash equivalents balance at period-end was **CNY 1.73 billion** Key Items from Parent Company Cash Flow Statement (CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -51,826,745.42 | 59,917,314.97 | | Net Cash Flow from Investing Activities | -638,954,640.45 | 65,190,768.97 | | Net Cash Flow from Financing Activities | 83,514,225.31 | 265,102,891.68 | | Cash and Cash Equivalents at Period-End | 1,732,003,511.86 | 1,646,123,536.45 | [Explanation of New Standard Implementation and Financial Statement Adjustments](index=19&type=section&id=4.2%20First-time%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020%20and%20Related%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Implementation) The report does not provide information regarding the first-time adoption of new revenue and lease standards from 2020 and the adjustment of financial statements at the beginning of that year - Not applicable[29](index=29&type=chunk) [Explanation of New Standard Retrospective Adjustments](index=19&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustments%20to%20Prior%20Period%20Comparative%20Data%20Due%20to%20First-time%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) The report does not provide an explanation regarding the retrospective adjustment of prior period comparative data due to the first-time adoption of new revenue and lease standards from 2020 - Not applicable[29](index=29&type=chunk) [Audit Report](index=19&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - Not applicable[29](index=29&type=chunk)

Company Overview - Zhengzhou Coal Mining Machinery Group Company Limited is the largest hydraulic roof support manufacturer in China, focusing on coal mining and excavating equipment[4]. - The company was incorporated on December 28, 2008, and its A Shares were listed on the Shanghai Stock Exchange on August 3, 2010, while H Shares were listed on December 5, 2012[3]. - The company’s headquarters and registered office are located in Zhengzhou, Henan Province, PRC[8]. Financial Performance - In 2019, the revenue generated by the company amounted to RMB 25,721.42 million, representing a year-on-year decline of 1.12%[11]. - Net profit attributable to the parent company amounted to RMB 1,040.25 million, representing a year-on-year increase of 24.98%[11]. - The company recorded high-quality growth of orders and receivables collection, both reaching historic new highs in 2019[27]. - For the year ended December 31, 2019, the Group achieved sales revenue of RMB 25,721.42 million, representing a decrease of 1.12% from the previous year[75]. - Profit attributable to owners of the Company was RMB 1,040.25 million, an increase of 24.98% from the previous year[75]. - Earnings per share for the year was RMB 0.06[75]. - Gross profit for 2019 was RMB 4,797.52 million, slightly down from RMB 4,851.88 million in 2018[81]. - Other income rose significantly to RMB 225.18 million in 2019 from RMB 106.06 million in 2018, reflecting improved financial performance[81]. Research and Development - The company emphasizes its commitment to advanced manufacturing processes and extensive R&D to drive future growth[4]. - The company established a smart mining research institute to enhance its R&D system and expedite the promotion of intelligent products[28]. - The company is actively pursuing the electrification technology market, developing second-generation BRM products with better energy-saving functions[43]. - The company plans to enhance independent innovation by integrating technologies such as 5G, big data, and IoT to develop an intelligent and comprehensive R&D system[59]. Market Strategy and Expansion - The company is focusing on internal resource synergy and has formulated a new five-year development strategy to enhance operational efficiency[45]. - The coal industry presented a stable market demand for coal mining machinery, contributing to the company's improved operating results[26]. - Zhengzhou Coal Mining Machinery Group achieved a historical high in order intake and cash flow in 2019, focusing on profitable and cash-generating orders[31]. - The company successfully entered the premium markets in Australia and the USA, while consolidating its position in Russia, enhancing its international competitiveness[32]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2021[127]. Corporate Governance - The company complied with the Corporate Governance Code and Code Provisions during the review period ending December 31, 2019[165]. - The Board has established four committees: Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Assessment Committee[166]. - The Board is responsible for the company's operating plans, investment proposals, and annual financial budgets[166]. - The independent non-executive Directors have confirmed their independence, meeting the requirements of the Listing Rules[179]. Risk Management - The Company has established a risk management and internal control system to manage risks associated with achieving business objectives, ensuring reliability of financial reports and compliance with laws[180]. - The Audit Committee monitors the risk management and internal control system, advising the Board on major decisions regarding its construction[182]. - The Company has conducted a comprehensive review of its risk management and internal control system, assessing it as effective and sufficient, with no major risk control failures reported for 2019[188]. Leadership and Management - The company has a strong leadership team with diverse backgrounds in engineering and finance, including independent non-executive directors with significant experience in investment banking and accounting[132][133]. - The management team has a combined experience of over 30 years in their respective fields, ensuring informed decision-making[156]. - The Company aims to leverage its experienced leadership to drive innovation and improve operational performance in the coming years[159]. Future Outlook - The company has set a future outlook with a revenue target of 1.5 billion for 2020, indicating a projected growth of 25%[125]. - New product development includes the launch of a next-generation mining machinery line, expected to contribute an additional 200 million in revenue[126]. - The board has approved a new strategy focusing on sustainability, with a goal to reduce carbon emissions by 40% by 2025[127].

Financial Performance - In the first half of 2019, the Company achieved the best record in key operational indicators such as revenue and profit in recent years[14]. - In the first half of 2019, the company achieved revenue of RMB 12,724.47 million, a year-on-year increase of 0.15%, and net profit attributable to shareholders of RMB 730.73 million, representing a significant increase of 60.27%[19]. - For the six months ended June 30, 2019, the Group achieved sales revenue of RMB 12,724.47 million, representing an increase of 0.15% from the corresponding period of last year[39]. - Profit attributable to owners of the Company was RMB 730.73 million, reflecting a significant increase of 60.27% compared to the same period last year[39]. - The Group's total comprehensive income attributable to owners of the Company was RMB 740,536, compared to RMB 418,294 in 2018, reflecting a growth of 77.00%[105]. - The consolidated profit for the period was RMB 786,988, compared to RMB 521,882 in the previous year, representing a year-over-year increase of approximately 50.8%[167]. Business Strategy and Development - The Company focused on the development strategy of "international strategic positioning, market-based corporate governance, high-end industry layout and global human resources" during the first half of 2019[14]. - The Company continued to optimize its management structure and push forward its reform to capture development opportunities in the coal industry[14]. - The Company is actively coping with market challenges while seizing opportunities presented by the reform of state-owned enterprises[14]. - The company implemented a mid to long-term super profit incentive scheme and share option incentive scheme to attract and retain core talents, enhancing its operational vitality[16]. - The Group aims to optimize its industrial layout and promote energy-saving products, including the 48V BRM, as part of its strategy to transition from mechanical to integrated electromechanical products[34]. Market Performance - The Company reported steady growth in operating results despite a slumping automobile market[14]. - The coal mining machinery segment recorded historic highs in order placement and receivables collection, with successful market development strategies based on big data analysis in the domestic market and breakthroughs in premium international markets[21]. - In the auto parts segment, despite a global market slump, the company improved its marketing efforts and maintained better operational performance than the overall market[26]. - Revenue from the coal mining machinery segment increased by 19.68%, while revenue from the auto parts segment decreased by 7.47% due to reduced demand in the domestic market[47]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2019, amounted to RMB 3,115.96 million, with a net cash inflow from operating activities of RMB 993.51 million[52][54]. - The Group's net current assets as of June 30, 2019, were approximately RMB 6,217.80 million, down from RMB 6,968.04 million as of December 31, 2018, with a current ratio of 1.48[66]. - The balance of the Group's outstanding borrowings as of June 30, 2019, was RMB 2,963.14 million, with the current portion being RMB 1,588.14 million[68]. - The Group's total current liabilities as of June 30, 2019, were RMB 12,955.41 million, compared to RMB 11,704.72 million as of December 31, 2018[67]. - The Group's total assets as of June 30, 2019, were RMB 29,262,717, an increase from RMB 28,008,771 as of December 31, 2018, representing a growth of approximately 4.5%[107]. Shareholder Information and Governance - As of June 30, 2019, the company had a total of 51,433 shareholders, comprising 51,351 A-share holders and 82 H-share holders[77]. - The State-owned Assets Supervision and Administration Commission of Henan Provincial People's Government held 521,087,800 A shares, representing approximately 34.99% of the relevant class of shares and 30.08% of the total number of shares[82]. - The company appointed three independent non-executive directors as of June 30, 2019, ensuring compliance with the Listing Rules of the Stock Exchange[76]. - The company reported a beneficial ownership structure with significant holdings by state-owned entities, indicating strong government support[82]. Research and Development - The company has a strong research and development capability and advanced manufacturing processes, which are key to its success[4]. - The company accelerated its scientific research and technological upgrades, focusing on high-end hydraulic roof support technologies and intelligent products, with projects progressing smoothly[22]. - Total research and development expenses incurred during the six months ended June 30, 2019, were approximately RMB 709,354,000, a decrease from RMB 1,410,072,000 in 2018[198]. Risk Management - The company monitors foreign exchange exposure primarily related to USD/RMB, EUR/RMB, and HKD/RMB, and considers hedging when necessary[70]. - The company has no specific policy to manage interest rate risk but will monitor exposures and consider hedging significant risks if needed[70]. - The company has policies to ensure sales are made to reputable customers with appropriate financial strength and credit history[69]. Accounting and Financial Reporting - The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[95]. - The Group adopted IFRS 16 from January 1, 2019, without restating comparatives for the 2018 reporting period[130]. - The Group's financial statements reflect the impact of the adoption of IFRS 16, which included recognizing lease liabilities previously classified as operating leases[130]. Other Information - The company did not propose the payment of an interim dividend for the six months ended June 30, 2019[83]. - There was no material litigation or arbitration involving the company during the review period[85]. - The audit committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2019[86].