Summary of the Conference Call for Shantui Construction Machinery Co., Ltd. Industry Overview - The domestic construction machinery industry is currently in a bottoming and recovery phase, benefiting from a series of infrastructure investment projects announced in June, such as the Yajiang investment project and the New Tibet Railway, which may bring sustained investment opportunities for 5-10 years with a total investment exceeding 1.2 trillion yuan [7][8][19]. Company Performance - Shantui's overall sales revenue growth of 5% outpaced the industry average, although it remains weaker compared to leading companies like Zoomlion, SANY, and LiuGong [2][3]. - The company has adjusted its overseas market structure, achieving significant growth in regions such as Indonesia, Africa, Southeast Asia, and Australia, which helped offset declines in the Russian market [2][4][5]. Product Development and Innovation - To address reliability issues in mining machinery products, Shantui is accelerating new product validation, including excavators ranging from 150 to 300 tons and AI-powered bulldozers and excavators [2][8][10]. - The company has released an AI product implementation roadmap, progressing from L1 to L5 levels to enhance construction efficiency [9][10]. Market Expansion and Strategic Initiatives - Shantui's Hong Kong stock issuance is progressing smoothly, with plans to complete it by the end of 2025 and potentially finalize it in Q1 2026 [12][13]. - The mining machinery sector is identified as a key development area, with related profits accounting for over 40% of total profits, and overseas markets being the main growth driver [2][14]. Sales and Revenue Insights - In the first half of 2025, Shantui's sales revenue from parts reached nearly 1.3 billion yuan, with an annual target of 12 to 13 billion yuan, indicating that the company is on track to exceed its budget [4][36]. - The company has approximately 200-300 orders for high-end mining trucks, with revenue exceeding 300 million yuan, and is expanding production with a total investment of 250 million yuan [15][17]. Regional Market Performance - The African market accounts for over 30% of Shantui's sales, with Southeast Asia nearing 20% and Indonesia showing continuous growth [4][11]. - The company is focusing on enhancing its presence in Indonesia by establishing a subsidiary and renting facilities for after-sales service [11]. Future Outlook - The Russian market is expected to recover slightly in Q3 and Q4 of 2025, with a new wave of demand anticipated due to increased scrapping taxes for excavators [6][26]. - The global mining truck market is projected to reach 5.7 billion USD by 2023, with a compound annual growth rate (CAGR) of 3.8%, while the Chinese market is expected to grow from 3.2 billion USD in 2023 to 4.6 billion USD by 2030, with a CAGR of 4.2% [4][19]. Conclusion - Shantui is strategically positioned to leverage growth opportunities in the construction machinery sector, particularly through innovation in AI technology and expansion into overseas markets, while addressing challenges in the Russian market and enhancing product reliability.

Market Performance - The engineering machinery sector increased by 1.46% on September 24, with Zhongli Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] Individual Stock Performance - Zhongli Co., Ltd. (603194) closed at 46.10, up 4.80% with a trading volume of 106,100 shares and a turnover of 482 million yuan [1] - Shantui Co., Ltd. (000680) closed at 10.31, up 4.78% with a trading volume of 697,400 shares and a turnover of 713 million yuan [1] - Hangcha Group (603298) closed at 29.61, up 4.08% with a trading volume of 159,900 shares and a turnover of 472 million yuan [1] - Anhui Heli (600761) closed at 22.64, up 2.91% with a trading volume of 168,500 shares and a turnover of 377 million yuan [1] - Yizhong Heavy Industry (600031) closed at 22.25, up 2.87% with a trading volume of 967,400 shares and a turnover of 2.133 billion yuan [1] Capital Flow Analysis - The engineering machinery sector saw a net inflow of 10.48 million yuan from institutional investors, while retail investors contributed a net inflow of 82.71 million yuan [2] - The sector experienced a net outflow of 93.19 million yuan from speculative funds [2] Stock-Specific Capital Flow - Yizhong Heavy Industry (600031) had a net inflow of 36.5 million yuan from institutional investors, but a net outflow of 10 million yuan from speculative funds [3] - Zhongli Co., Ltd. (603194) saw a net inflow of 55.55 million yuan from institutional investors, while retail investors had a net outflow of 57.80 million yuan [3] - Hangcha Group (603298) experienced a net inflow of 32.24 million yuan from institutional investors, with a net outflow of 7.20 million yuan from retail investors [3]

Company Overview - Shantui Construction Machinery Co., Ltd. is located in Jining, Shandong Province, and was established on December 14, 1993, with its listing date on January 22, 1997. The company specializes in the research, development, manufacturing, sales, leasing, maintenance, and technical consulting services of construction machinery, mining machinery, agricultural machinery, harvesting machinery, and their parts [1]. Financial Performance - As of September 24, Shantui's stock price increased by 5.08%, reaching 10.34 CNY per share, with a trading volume of 583 million CNY and a turnover rate of 4.35%. The total market capitalization stands at 15.511 billion CNY [1]. - The main revenue composition of Shantui includes 73.25% from construction machinery main products, 19.45% from construction machinery parts and others, and 7.31% from other supplementary sources [1]. Fund Holdings - According to data, one fund under E Fund has a significant holding in Shantui. The E Fund New Silk Road Mixed Fund (001373) held 6.5969 million shares in the second quarter, accounting for 2.12% of the fund's net value, making it the ninth largest holding. The estimated floating profit for today is approximately 3.2985 million CNY [2]. - The E Fund New Silk Road Mixed Fund was established on May 27, 2015, with a current scale of 2.787 billion CNY. Year-to-date returns are 21.42%, ranking 4102 out of 8173 in its category; the one-year return is 35.67%, ranking 4502 out of 7996; and since inception, the return is 106.9% [2].

Investment Rating - The report maintains a "Buy" rating for the machinery industry, indicating a positive outlook for investment returns over the next 6-12 months [1]. Core Insights - In August 2025, domestic excavator sales showed resilience during the traditional off-season, with a significant recovery in non-excavator categories [3][4]. - The report highlights a robust growth trend in domestic demand for construction machinery, supported by government policies and infrastructure investments [5][10]. - The electric loader segment is experiencing substantial growth, with sales increasing by 159.4% year-on-year in August 2025, indicating a shift towards electrification in the industry [7][8]. Summary by Sections Sales Performance - In August 2025, excavator sales (including exports) reached 16,523 units, a year-on-year increase of 12.8%, with domestic sales at 7,685 units, up 14.8% [3][14]. - Non-excavator machinery categories also showed strong performance, with loaders up 18.3%, graders up 16.1%, and truck cranes up 28.2% [3][14]. Government Support and Policy - The government plans to issue long-term special bonds totaling 1.3 trillion yuan, which is expected to boost infrastructure investment and, consequently, machinery demand [5]. - The report emphasizes the ongoing implementation of new urbanization strategies and infrastructure projects, which will sustain demand for construction machinery [5]. Export Trends - Excavator exports in August 2025 reached 8,838 units, marking an 11.1% increase year-on-year, with a total of 73,553 units exported from January to August, up 12.8% [6][14]. - The report notes opportunities in Southeast Asia, Africa, and the Middle East for machinery exports, despite challenges such as U.S.-China tariff uncertainties [6]. Electrification and Innovation - The electric loader sales reached 2,477 units in August 2025, with an electrification rate of 26.2%, reflecting a significant increase in the adoption of electric machinery [7][35]. - The report suggests that the trend towards green and electric machinery will enhance revenue and profit margins for leading manufacturers [8]. Major Projects Impact - The commencement of the Yarlung Tsangpo River hydropower project, with an estimated investment of 1.2 trillion yuan, is expected to significantly boost machinery demand, potentially reaching 120-180 billion yuan in equipment needs [9]. Investment Recommendations - The report recommends several leading manufacturers, including SANY Heavy Industry, Zoomlion, and XCMG, as well as component suppliers like Hengli Hydraulic, indicating a favorable long-term outlook for these companies [10][11].

Investment Rating - The report maintains a "Buy" rating for the machinery industry, indicating a positive outlook for investment returns over the next 6-12 months [1]. Core Insights - The domestic excavator sales in August 2025 showed resilience during the traditional off-season, with significant recovery in non-excavator categories [3][4]. - The report highlights a strong growth trend in the sales of various types of construction machinery, with notable increases in loader sales by 18.3%, grader sales by 16.1%, and truck crane sales by 28.2% in August 2025 [3][4]. - The government’s fiscal policies, including the issuance of long-term special bonds and increased local government bonds, are expected to support infrastructure investment and, consequently, machinery demand [5]. - The report emphasizes the ongoing internationalization and electrification trends in the machinery industry, with electric loader sales increasing by 159.4% in August 2025 [7][8]. - The commencement of the Yarlung Tsangpo River hydropower project is projected to significantly boost machinery demand, with equipment needs estimated between 120 billion to 180 billion RMB [9]. Summary by Sections Sales Performance - In August 2025, excavator sales reached 16,523 units, a year-on-year increase of 12.8%, with domestic sales at 7,685 units, up 14.8% [14]. - Non-excavator machinery categories also showed strong performance, with loaders and truck cranes experiencing significant sales growth [3][14]. Government Support - The government plans to issue 1.3 trillion RMB in long-term special bonds and increase local government bonds to 4.4 trillion RMB, aimed at enhancing infrastructure investment [5]. - Continued investment in urban infrastructure and new-type urbanization strategies is expected to sustain machinery demand [5]. Export Trends - Excavator exports in August 2025 totaled 8,838 units, reflecting a year-on-year growth of 11.1% [6]. - The report notes opportunities and challenges in the export market, particularly in Southeast Asia, Africa, and the Middle East [6]. Electrification and Innovation - The report highlights a significant increase in electric loader sales, with a 159.4% year-on-year growth in August 2025, indicating a shift towards electrification in the industry [7][8]. - The electrification trend is expected to enhance revenue and profit margins for leading manufacturers [8]. Future Demand Drivers - The Yarlung Tsangpo River hydropower project is anticipated to create substantial demand for construction machinery, with a projected equipment investment of 120 billion to 180 billion RMB [9].

Core Viewpoint - Shantui Construction Machinery Co., Ltd. is actively pursuing an IPO on the Hong Kong Stock Exchange to alleviate financial pressures and expand its overseas market presence, following a significant acquisition that has strained its cash flow [1][24][34]. Group 1: Financial Performance and Challenges - Shantui's revenue for the first half of 2025 was 7 billion RMB, a slight increase of 3% year-on-year, but domestic market revenue declined by 2% to 3.1 billion RMB, indicating pressure in the domestic market [7][8]. - The company's profit growth has slowed, with net profits of 5.77 billion RMB in the first half of 2025, reflecting a mere 9% year-on-year increase, down from previous years' growth rates [9][11]. - Shantui plans to reduce costs by 520 million RMB in 2025 through various measures, including design and procurement cost reductions, but this may compromise future product competitiveness [11][12]. Group 2: Corporate Structure and Related Transactions - Shantui is closely tied to its parent company, Shandong Heavy Industry Group, which is a major customer and supplier, with significant inter-company transactions [12][14]. - The company has a high dependency on Shandong Heavy Industry for both sales and procurement, with sales to the parent company amounting to 6.55 billion RMB in 2022, and procurement from it reaching 21.37 billion RMB by 2025 [14][16]. - Shantui's financial strategy includes leveraging its relationship with Shandong Heavy Industry to manage cash flow and reduce procurement costs [16][18]. Group 3: Market Expansion and Global Strategy - Shantui aims to enhance its global presence, with overseas revenue increasing from 38.7% to 55.7% during the reporting period, despite challenges in the Russian market due to geopolitical issues [24][26]. - The company is focusing on expanding into markets in Africa, Indonesia, the Middle East, and Southeast Asia, with plans to establish subsidiaries in several countries [27][28]. - The IPO is intended to support this global strategy and provide necessary funding to strengthen its financial position and support overseas expansion [34].

Core Viewpoint - Shantui Co., Ltd. announced a mid-term equity distribution plan for 2025, proposing a cash dividend of 0.35 RMB (including tax) for every 10 shares held by shareholders [1] Group 1 - The equity distribution date is set for September 25, 2025, with the ex-dividend date on September 26, 2025 [1]

证券代码：000680 简称：山推股份 公告编号：2025-077 山推工程机械股份有限公司 2025 年中期权益分派实施公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 按总股本折算每股现金红利=实际现金分红总额/总股本（含回购股份），即 0.0347488 元/股=52,128,298.67 元/1,500,142,612 股。 除权除息参考价=除权除息日的前一交易日收盘价-按总股本折算每股现金红利； 综上，2025 年中期权益分派实施后的除权除息价格按照上述原则及计算方式执行， 即本次权益分派实施后的除权除息价格=除权除息日的前一交易日收盘价－0.0347488 元/股。 公司于 2025 年 8 月 22 日召开第十一届董事会第十八次会议，审议通过了《公司 2025 年中期利润分配预案》，该利润分配预案属于本公司 2024 年度股东大会授权董事 会制定中期分红方案的范围，无需提交股东会审议。现将权益分派事宜公告如下： 特别提示： 1、根据《深圳证券交易所上市公司自律监管指引第 9 号-回购股份》的相关规定， 山推工程机械股份有限公司(以下简称"公司 ...

Group 1 - The engineering machinery sector rose by 3.03% on September 19, with Wuxin Tunnel Equipment leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] - Key stocks in the engineering machinery sector showed significant price increases, with Wuxin Tunnel Equipment up 11.57% and Shanhai Intelligent up 10.00% [1] Group 2 - The engineering machinery sector saw a net inflow of 778 million yuan from institutional investors, while retail investors experienced a net outflow of 881 million yuan [2][3] - Major stocks like Shanhai Intelligent and Yichong Heavy Industry had substantial net inflows from institutional investors, indicating strong interest [3] - The trading volume for Wuxin Tunnel Equipment reached 107,300 shares, contributing to a total transaction value of 670 million yuan [1]

Group 1: Company Overview - The main business revenue comes from the production and sales of bulldozers, excavators, loaders, road rollers, graders, pavers, milling machines, concrete machinery, and core components like track chassis and transmission parts [2]. - The sales model includes a combination of agency distribution for main products and a mix of supply and agency sales for parts, along with expanding into operational leasing services [2]. Group 2: Excavator Business Development - The excavator market has seen significant growth in the first half of the year due to a combination of policy stimulation, infrastructure resilience, and inventory clearance [3]. - The company completed a strategic merger with Shandong Heavy Industry in December 2024, enhancing resource integration in R&D, manufacturing, sales, and service for excavators [3]. - The product range for excavators spans from 1.5 tons to 200 tons, achieving a market coverage rate of over 98%, with industry-leading technology in electronic control systems, noise reduction, and energy efficiency [3]. Group 3: H-Share Issuance - In July 2025, the company’s board approved the issuance of H shares and listing on the Hong Kong Stock Exchange [4]. - The company received approval from its controlling shareholder for the H share issuance and submitted the application to the Hong Kong Stock Exchange on August 28, 2025 [4]. - The proposed issuance will not exceed 15% of the total share capital post-issuance, amounting to a maximum of 264,731,100 shares, with pricing determined through market-based methods [4].