[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Item%201.%20Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) This section provides important disclaimers, the report's table of contents, and definitions of key terms [Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of the annual report, which highlights policy, industry, and transformation risks, and proposes a capital reserve capitalization plan of 7 shares for every 10 shares - The company faces three main risks: - **Policy Risk**: Adjustments in national macroeconomic, coal industry, and environmental policies may impact the company's performance - **Industry Risk**: The company's performance is significantly affected by the development and price fluctuations in the coal industry - **Transformation Risk**: The company's transition to a "coal machinery + gaming" dual-main business model faces technology, market, and management risks in new areas[6](index=6&type=chunk) - The company's 2017 profit distribution plan is to capitalize **7 shares for every 10 shares** held by all shareholders from capital reserves, with no cash dividends or bonus shares[6](index=6&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's basic information and a summary of its key financial performance and position [Company Basic Information](index=5&type=section&id=I.%20Company%20Information) Shandong Mining Machinery Group Co., Ltd. (stock code: 002526) is listed on the Shenzhen Stock Exchange, with Zhao Huatao as its legal representative, and its registered and operational addresses are in Changle County Economic Development Zone, Shandong Province Key Company Information | Item | Content | | :--- | :--- | | **Stock Abbreviation** | Shandong Mining Machinery | | **Stock Code** | 002526 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Legal Representative** | Zhao Huatao | [Key Accounting Data and Financial Indicators](index=6&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2017, the company achieved significant performance growth, with operating revenue increasing by 61.35% and net profit attributable to shareholders soaring by 567.47%, while total assets and net assets also grew steadily Key Financial Indicators | Key Financial Indicators | 2017 (CNY) | 2016 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,382,049,961.49 | 856,527,703.61 | 61.35% | | **Net Profit Attributable to Shareholders of Listed Company** | 71,335,180.60 | 10,687,413.19 | 567.47% | | **Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Items** | 48,820,839.92 | -89,440,441.76 | 154.58% | | **Net Cash Flow from Operating Activities** | 156,483,965.52 | 139,077,066.73 | 12.52% | | **Basic Earnings Per Share (CNY/share)** | 0.1336 | 0.0200 | 568.00% | | **Total Assets** | 3,060,713,254.65 | 2,663,596,850.86 | 14.91% | | **Net Assets Attributable to Shareholders of Listed Company** | 2,278,644,256.93 | 1,701,584,258.19 | 33.91% | [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In 2017, the company's non-recurring gains and losses totaled 22.51 million Yuan, a significant decrease from 100.13 million Yuan in 2016, primarily due to reduced gains/losses on disposal of non-current assets and government grants Non-Recurring Gains and Losses | Item | 2017 Amount (CNY) | 2016 Amount (CNY) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 3,171,059.69 | 50,063,690.24 | | Government Grants Recognized in Current Profit/Loss | 2,315,449.29 | 27,440,524.15 | | Other Non-Operating Income and Expenses | 19,144,606.09 | 23,473,017.53 | | **Total** | **22,514,340.68** | **100,127,854.95** | [Company Business Overview](index=9&type=section&id=Item%203.%20Company%20Business%20Overview) This section outlines the company's principal businesses and analyzes its core competitive advantages [Principal Businesses](index=9&type=section&id=I.%20Principal%20Businesses%20During%20the%20Reporting%20Period) The company established a dual-main business model of "coal machinery production, coal sales, and mining services" alongside "online gaming and internet services" during the reporting period, with traditional coal machinery benefiting from market recovery and new gaming business enhancing overall strength - The company's original principal businesses were coal machinery production, coal sales, and mining services, which remained stable, with mining services contributing strong performance[30](index=30&type=chunk) - In 2017, the company acquired gaming operator Beijing Linyou Interactive Technology Co., Ltd., initiating a diversified operating model with dual main businesses encompassing traditional and emerging sectors[30](index=30&type=chunk) [Analysis of Core Competencies](index=9&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competitiveness stems from its seven major advantages: management, team, technology, equipment, products, brand, and platform, supported by decades of experience, strong R&D, and comprehensive equipment supply capabilities - The company possesses seven core advantages: management, team, technology, equipment, products, brand, and platform[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - Technologically, the company is the Shandong Coal Machinery Engineering Technology Research Center, holding **24 patents** and possessing comprehensive complete set supply capabilities for "three machines and one support" in fully mechanized mining faces[33](index=33&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Item%204.%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive discussion and analysis of the company's operational performance, financial condition, and future outlook [Overview of Operations](index=11&type=section&id=I.%20Overview) In 2017, the company significantly improved its overall performance by leveraging the coal industry recovery to boost traditional coal machinery and mining profits, while also acquiring Beijing Linyou Interactive to establish a "coal machinery + gaming" dual-main business model - Traditional segment: Benefiting from the coal industry recovery, coal machinery and mining services significantly improved, leading to a substantial increase in profits[37](index=37&type=chunk) - Emerging segment: The acquisition of Beijing Linyou Interactive Technology Co., Ltd. was completed, initiating a dual-main business development model of "coal machinery production, coal sales, and mining services" plus "online gaming and internet services," which enhanced the company's overall performance[37](index=37&type=chunk)[38](index=38&type=chunk) [Analysis of Principal Business](index=12&type=section&id=II.%20Analysis%20of%20Principal%20Business) During the reporting period, the company's operating revenue increased by 61.35%, driven by the machinery industry and coal sales/mining services, with coal mining equipment revenue growing by 94.86% and a new online gaming business contributing 25.37 million Yuan Operating Revenue Composition | Operating Revenue Composition | 2017 Amount (CNY) | Proportion | YoY Change | | :--- | :--- | :--- | :--- | | **By Industry** | | | | | Machinery Industry | 899,236,271.61 | 65.07% | 74.47% | | Coal Sales and Mining Services | 389,854,692.27 | 28.21% | 59.88% | | IT Industry | 25,374,397.34 | 1.84% | - | | **By Product** | | | | | Coal Mining Machinery and Equipment | 745,747,108.08 | 53.96% | 94.86% | | Printing Equipment | 141,396,974.12 | 10.23% | 36.96% | Key Segment Gross Profit Margins | Key Segment Gross Profit Margin | 2017 Gross Profit Margin | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | | Machinery Industry | 23.78% | 3.86% | | Coal Sales and Mining Services | 14.38% | 4.78% | | Coal Mining Machinery and Equipment | 24.51% | 5.82% | Key Expense Items | Expense Item | 2017 (CNY) | 2016 (CNY) | YoY Change | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 79,878,365.68 | 53,420,904.47 | 49.53% | Increase due to higher sales revenue of principal products | | Financial Expenses | 12,127,288.35 | 25,141,771.23 | -51.76% | Decrease due to repayment of some bank loans, reducing interest expenses | R&D Investment | R&D Investment | 2017 | 2016 | Change Ratio | | :--- | :--- | :--- | :--- | | R&D Investment Amount (CNY) | 21,175,049.26 | 18,414,698.13 | 14.99% | | R&D Investment as % of Operating Revenue | 1.53% | 2.15% | -0.62% | Key Cash Flow Items | Cash Flow Item | 2017 (CNY) | 2016 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 156,483,965.52 | 139,077,066.73 | 12.52% | | Net Cash Flow from Investing Activities | 257,224,511.76 | 11,696,105.80 | 2,099.23% | | Net Cash Flow from Financing Activities | -306,822,078.78 | -175,650,223.61 | -74.68% | | Net Increase in Cash and Cash Equivalents | 106,886,398.50 | -24,877,051.08 | - | [Analysis of Assets and Liabilities](index=17&type=section&id=IV.%20Analysis%20of%20Assets%20and%20Liabilities) As of year-end 2017, the company's total assets reached 3.06 billion Yuan, growing by 14.91%, with a significant increase in goodwill to 438 million Yuan due to the Linyou Interactive acquisition, while short-term borrowings substantially decreased, optimizing the debt structure - Due to the acquisition of Beijing Linyou Interactive Technology Co., Ltd., the company's goodwill increased from **0 to 438 million Yuan**, accounting for **14.30%** of total assets[58](index=58&type=chunk) - Short-term borrowings significantly decreased from **395 million Yuan to 100 million Yuan**, with its proportion of total assets falling from **14.83% to 3.27%**, indicating reduced debt pressure for the company[58](index=58&type=chunk) [Analysis of Investment Status](index=18&type=section&id=V.%20Analysis%20of%20Investment%20Status) The most significant investment activity during the reporting period was the acquisition of 100% equity in Beijing Linyou Interactive Technology Co., Ltd. for 518 million Yuan through share issuance, aiming to expand into online gaming and internet services for new profit growth Major Investments | Investee Company | Principal Business | Investment Method | Investment Amount (CNY) | Shareholding Percentage | Investment Gain/Loss for the Period (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Linyou Interactive Technology Co., Ltd. | Online Gaming and Internet Services | Acquisition | 517,719,558.40 | 100.00% | 4,125,122.49 | [Significant Asset and Equity Disposals](index=19&type=section&id=VI.%20Significant%20Asset%20and%20Equity%20Disposals) On June 29, 2017, the company sold 85% of its equity in Changle County Wutu Coal Mine Co., Ltd. to Guizhou Taifengyuan Mining Resources Co., Ltd. for 22 million Yuan, which helped revitalize funds, accelerate transformation, and added approximately 5.05 million Yuan to current net profit - The company sold **85%** of its equity in Changle County Wutu Coal Mine Co., Ltd. for a transaction price of **22 million Yuan**, increasing the company's net profit by approximately **5.05 million Yuan**[66](index=66&type=chunk) [Analysis of Major Holding and Participating Companies](index=20&type=section&id=VII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, Yulin City Tianning Mining Services Co., Ltd. was a key profit contributor with 31.20 million Yuan in net profit, while the newly acquired Beijing Linyou Interactive Technology Co., Ltd. contributed 4.13 million Yuan, and the company also divested 85% of Wutu Coal Mine equity Major Holding and Participating Companies | Company Name | Type | Principal Business | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Yulin City Tianning Mining Services Co., Ltd. | Subsidiary | Mining Services, etc. | 149,378,688.56 | 31,195,820.09 | | Shandong Xinchuan Machinery Co., Ltd. | Subsidiary | Printing Machinery, etc. | 145,591,568.28 | 6,034,429.31 | | Beijing Linyou Interactive Technology Co., Ltd. | Subsidiary | Online Gaming, etc. | 25,374,397.34 | 4,125,122.49 | [Company's Future Development Outlook](index=21&type=section&id=IX.%20Company's%20Future%20Development%20Outlook) The company plans to deepen its "coal machinery + gaming" dual-main business strategy, focusing on "four modernizations" for traditional manufacturing and seeking new opportunities for online gaming, while integrating quality resources through M&A and managing risks from policy, industry, and business transformation - Company Development Strategy: - **Traditional Manufacturing Segment**: Strengthen the "four modernizations" strategy: **refinement, complete sets, automation, and service-oriented** - **Online Gaming and Internet Services Segment**: Seek new opportunities and projects, strengthen diversified development - **Capital Operations**: Integrate resources through investments and M&A, focusing on opportunities in coal machinery, mining, and gaming industries[70](index=70&type=chunk)[71](index=71&type=chunk) - The company faces risks including policy and industry risks related to the coal sector, as well as technology, market, and management risks associated with transitioning into new business areas[72](index=72&type=chunk)[73](index=73&type=chunk) [Significant Events](index=23&type=section&id=Item%205.%20Significant%20Events) This section details important corporate events, including profit distribution plans, fulfillment of commitments, and other major announcements [Profit Distribution and Capital Reserve Capitalization](index=23&type=section&id=I.%20Profit%20Distribution%20and%20Capital%20Reserve%20Capitalization%20of%20Ordinary%20Shares) Due to negative distributable profit at year-end 2017, the company decided against profit distribution but proposed a capital reserve capitalization plan of 7 shares for every 10 shares based on a total share capital of 616,883,681 shares, with no cash dividends in the past three years - 2017 profit distribution plan: No cash dividends will be distributed, and **7 shares for every 10 shares** will be capitalized from capital reserves to all shareholders[78](index=78&type=chunk)[81](index=81&type=chunk) - The reason for no profit distribution is that as of year-end 2017, the parent company's distributable profit to shareholders was **-2.57 million Yuan**[78](index=78&type=chunk)[81](index=81&type=chunk) [Fulfillment of Commitments](index=24&type=section&id=III.%20Fulfillment%20of%20Commitments) During the reporting period, the company and related parties strictly fulfilled all commitments made during the Linyou Interactive acquisition, including share lock-up, performance pledges (2017 net profit not less than 42 million Yuan), and commitments to avoid horizontal competition and regulate related party transactions - Linyou Interactive's original shareholders committed that the net profit attributable to the parent company after non-recurring items for Linyou Interactive in 2017-2019 would be no less than **42 million Yuan**, **54 million Yuan**, and **69 million Yuan**, respectively[86](index=86&type=chunk) - Linyou Interactive's transaction counterparts (Zhou Lifei, Liao Peng, etc.) made phased share lock-up commitments, with the longest lock-up period being **36 months**[82](index=82&type=chunk) [Explanation of Other Significant Matters](index=47&type=section&id=XIX.%20Explanation%20of%20Other%20Significant%20Matters) The most significant event during the reporting period was the company's share issuance to acquire 100% equity of Beijing Linyou Interactive Technology Co., Ltd. and raise supporting funds, which was conditionally approved by the CSRC on August 30, 2017, completed asset transfer on December 12, and saw new shares listed on January 2, 2018, marking the formal entry into a "coal machinery + gaming" dual-main business model - The company's share issuance for asset acquisition (Linyou Interactive) and raising supporting funds was conditionally approved by the CSRC on **August 30, 2017**[131](index=131&type=chunk) - The target asset, **100% equity** in Linyou Interactive, was transferred on **December 12, 2017**, making it a wholly-owned subsidiary of the company[132](index=132&type=chunk) - The newly issued shares for the asset acquisition were listed on **January 2, 2018**[132](index=132&type=chunk) [Changes in Share Capital and Shareholder Information](index=48&type=section&id=Item%206.%20Changes%20in%20Share%20Capital%20and%20Shareholder%20Information) This section reports on changes in the company's share capital structure and provides details about its shareholders and actual controller [Changes in Share Capital](index=48&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased from 534 million shares to 615 million shares due to a non-public offering for the Linyou Interactive acquisition, adding 80,893,681 new shares that were listed on January 2, 2018, altering the shareholder structure Changes in Share Capital | Item | Before Change (shares) | Increase/Decrease (shares) | After Change (shares) | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 74,988,146 | +16,757,138 | 91,745,284 | | **Unrestricted Shares** | 459,011,854 | +64,136,543 | 523,148,397 | | **Total Shares** | **534,000,000** | **+80,893,681** | **614,893,681** | - The change in share capital was due to the company's non-public offering of **80,893,681 new shares** for the acquisition of assets (Linyou Interactive)[137](index=137&type=chunk) [Shareholders and Actual Controller Information](index=51&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of year-end 2017, the company had 46,030 shareholders, with Mr. Zhao Duxue remaining the controlling shareholder and actual controller holding 20.86% of shares, while Zhou Lifei and Liao Peng became major shareholders due to the Linyou Interactive acquisition - The company's controlling shareholder and actual controller is Zhao Duxue, with a shareholding ratio of **20.86%** at the end of the reporting period[148](index=148&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) Top Five Shareholders | Top Five Shareholders | Shareholder Nature | Shareholding Percentage | | :--- | :--- | :--- | | Zhao Duxue | Domestic Natural Person | 20.86% | | Zhou Lifei | Domestic Natural Person | 5.66% | | Liao Peng | Domestic Natural Person | 4.21% | | Zhang Yizhen | Domestic Natural Person | 1.55% | | Pan Yueran | Domestic Natural Person | 1.32% | [Directors, Supervisors, Senior Management, and Employees](index=56&type=section&id=Item%208.%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides information on the company's directors, supervisors, senior management, including their shareholdings and overall employee structure [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=56&type=section&id=I.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management - During the reporting period, there were no increases or decreases in the shareholdings of any directors, supervisors, or senior management personnel[157](index=157&type=chunk) [Company Employee Information](index=60&type=section&id=V.%20Company%20Employee%20Information) As of the end of the reporting period, the company had a total of 1,740 employees, with production personnel constituting the largest group at 1,201, followed by technical personnel at 245, and the majority of employees holding college degrees or lower Employee Professional Composition | Professional Composition | Number of People | | :--- | :--- | | Production Personnel | 1,201 | | Sales Personnel | 154 | | Technical Personnel | 245 | | Financial Personnel | 87 | | Administrative Personnel | 53 | | **Total** | **1,740** | [Corporate Governance](index=62&type=section&id=Item%209.%20Corporate%20Governance) This section describes the company's corporate governance framework and the effectiveness of its internal control systems [Basic Status of Corporate Governance](index=62&type=section&id=I.%20Basic%20Status%20of%20Corporate%20Governance) During the reporting period, the company operated in strict compliance with relevant laws and regulations, ensuring its corporate governance practices, including shareholder meetings, board and supervisory board operations, information disclosure, and insider information management, were consistent with CSRC regulations - The company's actual corporate governance situation largely complies with the requirements of relevant laws, regulations, and rules, with no significant discrepancies[175](index=175&type=chunk)[177](index=177&type=chunk) - The company strictly implements the "Insider Information Registrant Management System" and diligently carries out the registration and filing of insider information registrants[176](index=176&type=chunk) [Internal Control Evaluation Report](index=64&type=section&id=IX.%20Internal%20Control%20Evaluation%20Report) The company's board of directors affirmed that as of December 31, 2017, the company maintained effective internal controls over financial reporting in all material aspects, with no significant or material weaknesses identified in financial or non-financial reporting during the period, and the accounting firm issued a standard unqualified internal control audit opinion - No significant or material weaknesses in internal control were identified during the reporting period[187](index=187&type=chunk)[188](index=188&type=chunk) - The accounting firm issued a standard unqualified audit opinion on the effectiveness of the company's internal controls over financial reporting as of December 31, 2017[189](index=189&type=chunk) [Financial Report](index=67&type=section&id=Item%2011.%20Financial%20Report) This section presents the audited financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements [Audit Report](index=67&type=section&id=I.%20Audit%20Report) Beijing Yongtuo Certified Public Accountants issued a standard unqualified audit opinion on the company's 2017 financial statements, with key audit matters focusing on goodwill impairment for the 438 million Yuan goodwill from Beijing Linyou Interactive acquisition and impairment provisions for accounts receivable - The audit opinion type is a **standard unqualified opinion**[193](index=193&type=chunk) - Key audit matters include: - **Goodwill Impairment**: Primarily refers to the impairment test conducted on the **438 million Yuan** goodwill arising from the acquisition of Beijing Linyou Interactive Technology Co., Ltd - **Allowance for Doubtful Accounts**: The estimation of the recoverable amount of accounts receivable involves significant management judgment[195](index=195&type=chunk)[196](index=196&type=chunk) [Financial Statements](index=70&type=section&id=II.%20Financial%20Statements) In 2017, the company's financial position remained stable, with total assets growing to 3.06 billion Yuan and equity attributable to the parent company increasing to 2.28 billion Yuan, while operating revenue reached 1.38 billion Yuan, a 61.35% increase, and net profit attributable to the parent company was 71.34 million Yuan, up 567.47% Key Items from Consolidated Balance Sheet | Key Items from Consolidated Balance Sheet | December 31, 2017 (CNY) | December 31, 2016 (CNY) | | :--- | :--- | :--- | | **Total Assets** | 3,060,713,254.65 | 2,663,596,850.86 | | **Total Liabilities** | 725,237,479.48 | 887,207,946.76 | | **Equity Attributable to Parent Company Owners** | 2,278,644,256.93 | 1,701,584,258.19 | Key Items from Consolidated Income Statement | Key Items from Consolidated Income Statement | 2017 (CNY) | 2016 (CNY) | | :--- | :--- | :--- | | **Total Operating Revenue** | 1,382,049,961.49 | 856,527,703.61 | | **Operating Profit** | 85,481,295.98 | -40,620,629.88 | | **Total Profit** | 103,724,244.29 | 10,482,795.49 | | **Net Profit Attributable to Parent Company Owners** | 71,335,180.60 | 10,687,413.19 | Key Items from Consolidated Cash Flow Statement | Key Items from Consolidated Cash Flow Statement | 2017 (CNY) | 2016 (CNY) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 156,483,965.52 | 139,077,066.73 | | **Net Cash Flow from Investing Activities** | 257,224,511.76 | 11,696,105.80 | | **Net Cash Flow from Financing Activities** | -306,822,078.78 | -175,650,223.61 | | **Net Increase in Cash and Cash Equivalents** | 106,886,398.50 | -24,877,051.08 | [Notes to Consolidated Financial Statements](index=108&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) The notes to the financial statements provide detailed explanations of account balances and changes, highlighting the 438 million Yuan goodwill from the Linyou Interactive acquisition, accounts receivable of 891 million Yuan with 203 million Yuan in bad debt provisions, inventory of 460 million Yuan, and a significant reduction in short-term borrowings from 395 million Yuan to 100 million Yuan - The book balance of accounts receivable at period-end was **891 million Yuan**, with an allowance for doubtful accounts of **203 million Yuan**, resulting in a carrying value of **687 million Yuan**[338](index=338&type=chunk) - Goodwill increased by **437,606,559.67 Yuan** due to the acquisition of Beijing Linyou Interactive Technology Co., Ltd[421](index=421&type=chunk) - The period-end balance of short-term borrowings was **100 million Yuan**, a significant decrease from **395 million Yuan** at the beginning of the period[436](index=436&type=chunk) [Catalogue of Documents for Reference](index=177&type=section&id=Item%2012.%20Catalogue%20of%20Documents%20for%20Reference) This section lists all documents available for public inspection, including the original annual report and audited financial statements [Documents for Reference](index=177&type=section&id=Documents%20for%20Reference) Documents available for reference include the original annual report signed by the legal representative, financial statements signed and sealed by the responsible persons, the original audit report, and all legally disclosed documents from the reporting period - Documents available for inspection include: - Original text of the 2017 Annual Report - Signed financial statements - Original audit report - All publicly disclosed documents during the reporting period[642](index=642&type=chunk)

山东矿机集团股份有限公司 2017 年第三季度报告正文 证券代码：002526 证券简称：山东矿机 公告编号：2017-071 山东矿机集团股份有限公司 2017 年第三季度报告正文 2017 年 10 月 1 山东矿机集团股份有限公司 2017 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,463,534,149.14 | | 2,663,596,850.86 | -7.51% | | 归属于上市公司股东的净资产 | 1,731,128,693.98 | | 1,701,584,258.19 | 1.74% | | （元） | | | | | | | 本报告期 | 本报告期比上年同期 增减 | 年初至报告期末 | 年初至报告期末比上 年同期增减 | | 营业收入（元） | 408,096,024.05 | ...

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 494,104,945.71, representing a 12.87% increase compared to CNY 437,761,102.71 in the same period last year[21]. - The net profit attributable to shareholders was CNY 14,971,690.39, a significant turnaround from a loss of CNY 20,514,833.40 in the previous year, marking a 172.98% improvement[21]. - Basic earnings per share rose to CNY 0.0280, compared to a loss of CNY 0.0384 per share in the same period last year, reflecting a 172.92% increase[21]. - The net cash flow from operating activities increased by 120.42% to CNY 68,867,083.87, up from CNY 31,242,943.17 in the prior year[21]. - The company reported a net profit margin improvement, with net profit increasing significantly compared to the previous period, although specific figures were not disclosed in the provided data[125]. - The net profit for the first half of 2017 was CNY 11.25 million, a significant recovery from a net loss of CNY 23.64 million in the same period of the previous year[126]. - The total profit for the first half of 2017 was CNY 11.32 million, compared to a total loss of CNY 22.58 million in the same period of 2016[126]. Assets and Liabilities - Total assets decreased by 7.19% to CNY 2,472,130,527.78 from CNY 2,663,596,850.86 at the end of the previous year[21]. - The company's total assets included cash and cash equivalents of ¥142,326,839.60, which accounted for 5.76% of total assets, an increase from 4.47%[49]. - Total liabilities reduced to CNY 504,746,219.81 from CNY 605,470,229.78, indicating a decrease of approximately 16.6%[123]. - The company's total liabilities at the end of the reporting period were CNY 1,113,719,338.00, indicating a substantial leverage position[148]. Strategic Initiatives - The company plans to transform into a dual-main business model, integrating coal machinery production and sales with online gaming and services, aiming to optimize asset structure and improve financial performance[31]. - The company is actively pursuing strategic transformation and market expansion to enhance profitability and risk resilience[7]. - The company is focused on strategic transformation and structural adjustment to enhance profitability and risk resistance[63]. - The company has implemented a diversified development strategy to mitigate risks and is actively seeking suitable cooperation opportunities[63]. Risks and Challenges - The company is facing risks related to policy changes, transformation challenges, and funding issues in the coal industry[7]. - The company is facing risks related to policy changes in the coal industry, transformation challenges, and funding issues, which could impact overall performance[63]. - The company emphasizes risk control and internal control improvements during its strategic transformation phase, aiming to enhance overall risk management capabilities[40]. Cash Flow Management - The net cash flow from operating activities surged by 120.42% to ¥68,867,083.87, up from ¥31,242,943.17, due to improved collection of receivables[43]. - The company has taken measures to enhance the control of receivables and improve cash recovery efforts to ensure financial security[63]. - The company's cash and cash equivalents at the end of the reporting period amount to ¥142,326,839.63, a decrease from ¥150,067,677.19 at the beginning of the period[116]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for this period[8]. - The total number of shares is 534,000,000, with 85.96% being unrestricted shares[99]. - The largest shareholder, Zhao Duxue, holds 24.02% of the shares, amounting to 128,246,686 shares, with 25,000,000 shares pledged[102]. Subsidiaries and Investments - The company sold 85% of its stake in Changle County Wutu Coal Mine Co., Ltd., which is expected to help revitalize funds and accelerate the company's transformation[60]. - Major subsidiaries include Weifang Ke'er Construction Machinery Co., Ltd., which reported a net loss of approximately 1.8 million yuan, and Xinjiang Changmei Mining Machinery Co., Ltd., which also reported a net loss of approximately 74,483.5 yuan[59]. - As of the 2017 semi-annual report, the company included 13 subsidiaries in its consolidated financial statements, comprising 6 wholly-owned and 7 controlled subsidiaries[158]. Compliance and Governance - The company has maintained a good integrity status, with no instances of failing to fulfill court judgments or overdue debts[77]. - The half-year financial report has not been audited[71]. - There were no media controversies or regulatory penalties during the reporting period[75][76]. Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial reports accurately reflect its financial position and operating results[161]. - The company uses RMB as its functional currency for accounting purposes[164]. - The company evaluates control over subsidiaries based on the ability to influence returns through participation in relevant activities[169].

山东矿机集团股份有限公司 2017 年第一季度报告正文 证券代码：002526 证券简称：山东矿机 公告编号：2017-033 山东矿机集团股份有限公司 2017 年第一季度报告正文 2017 年 4 月 1 山东矿机集团股份有限公司 2017 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人赵华涛、主管会计工作负责人张星春及会计机构负责人(会计主 管人员)杨昭明声明：保证季度报告中财务报表的真实、准确、完整。 2 山东矿机集团股份有限公司 2017 年第一季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 √ 适用 □ 不适用 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 231,359.90 | | | 计入当期 ...

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=Important%20Notice) The company's board and executives guarantee report accuracy, identifying four major risks: coal industry volatility, macroeconomic and policy impacts, strategic transformation, and funding issues from customer payments, with no profit distribution planned for 2016 - The company explicitly identified four major risks: - **Industry Risk**: Despite a coal industry recovery in H2 2016, the coal machinery market did not rebound significantly, indicating substantial industry risk[5](index=5&type=chunk) - **Policy Risk**: National macroeconomic and coal industry overcapacity policies introduce uncertainty to operations[5](index=5&type=chunk) - **Transformation Risk**: New projects in strategic transformation face technical, market, and management risks[5](index=5&type=chunk) - **Funding Risk**: Deteriorating payment capabilities of coal enterprises lead to extended accounts receivable cycles and bad debt risks[5](index=5&type=chunk) - The company's 2016 profit distribution plan includes no cash dividends, no bonus shares, and no capitalization of capital reserves[5](index=5&type=chunk) Company Profile and Key Financial Indicators [Key Accounting Data and Financial Indicators](index=6&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2016, operating revenue decreased by **20.39%** to **856.53 million yuan**, yet the company achieved a net profit of **10.69 million yuan**, a **103.99%** increase, despite a negative core business profit of **-89.44 million yuan** and improved operating cash flow by **38.75%** Key Accounting Data and Financial Indicators | Indicator | 2016 | 2015 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (yuan)** | 856,527,703.61 | 1,075,908,394.07 | -20.39% | | **Net Profit Attributable to Shareholders (yuan)** | 10,687,413.19 | -267,654,597.70 | 103.99% | | **Net Profit Attributable to Shareholders After Non-Recurring Items (yuan)** | -89,440,441.76 | -314,491,131.49 | 71.56% | | **Net Cash Flow from Operating Activities (yuan)** | 139,077,066.73 | 100,238,444.69 | 38.75% | | **Basic Earnings Per Share (yuan/share)** | 0.0200 | -0.5012 | 103.99% | | **Total Assets (yuan)** | 2,663,596,850.86 | 2,936,630,909.29 | -9.30% | | **Net Assets Attributable to Shareholders (yuan)** | 1,701,584,258.19 | 1,692,466,960.31 | 0.54% | Non-Recurring Gains and Losses | Item | 2016 Amount (yuan) | 2015 Amount (yuan) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 50,063,690.24 | 44,670,013.52 | | Government Grants Recognized in Current P&L | 27,440,524.15 | 974,485.97 | | Gains/Losses from Entrusted Investments/Asset Management | 2,466,442.44 | 5,086,956.18 | | Other Non-Operating Income and Expenses | 23,473,017.53 | -5,520,477.35 | | **Total** | **100,127,854.95** | **46,836,533.79** | Quarterly Key Financial Indicators | Quarter | Operating Revenue (yuan) | Net Profit Attributable to Shareholders (yuan) | | :--- | :--- | :--- | | Q1 | 197,601,713.20 | -3,642,462.28 | | Q2 | 240,159,389.51 | -16,872,371.12 | | Q3 | 172,469,838.97 | -14,965,436.51 | | Q4 | 246,296,761.93 | 46,167,683.10 | Company Business Overview [Main Business](index=9&type=section&id=I.%20Main%20Businesses%20Engaged%20in%20During%20the%20Reporting%20Period) The company's main businesses include coal machinery manufacturing, coal sales, and mining services, but facing market downturns, it plans a strategic transformation to a 'coal machinery + online gaming' dual-main business model to optimize assets and boost profitability - The company's original main businesses included coal machinery manufacturing, coal sales, and coal mining services, with products such as hydraulic supports and scraper conveyors[28](index=28&type=chunk) - To address coal machinery market challenges, the company plans to transform into a dual-main business model: 'coal machinery manufacturing, coal sales, and coal mining services' combined with 'online gaming and services'[28](index=28&type=chunk) [Core Competencies](index=9&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competencies include an experienced management team, efficient systems, leading R&D with **27 patents**, advanced equipment, comprehensive product offerings, ample capital, extensive marketing, and an innovative approach to overseas and diversified development - The company's core competencies encompass eight major advantages: team, management, technology, equipment, products, capital, marketing services, and innovation[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Technological Advantage: The company, as the Shandong Coal Machinery Engineering Technology Research Center, holds **27 patents** and has achieved significant breakthroughs in R&D for difficult-to-mine coal seams[31](index=31&type=chunk) - Product Advantage: The company offers comprehensive complete set matching capabilities for fully mechanized mining faces, providing "three machines and one support" one-stop services[31](index=31&type=chunk) Management Discussion and Analysis [Overview of Operations](index=11&type=section&id=I.%20Overview) In 2016, the company focused on 'revitalization' and 'development' amidst a sluggish coal machinery market, securing funds by reducing receivables and inventory, stabilizing domestic operations, and expanding overseas, while achieving phased success in new sectors and actively pursuing major asset restructuring - The company continued to strengthen its 'four-pronged' development strategy in the coal machinery sector: refinement, complete sets, automation, and service-oriented[35](index=35&type=chunk) - The company's transformation businesses, including aviation, 3D printing, and industrial robots, achieved phased success, with online gaming and services adopted as a new strategic direction[36](index=36&type=chunk) - During the reporting period, the company actively progressed major asset restructuring efforts[36](index=36&type=chunk) [Main Business Analysis](index=11&type=section&id=II.%20Main%20Business%20Analysis) In 2016, total operating revenue decreased by **20.39%**, with mechanical industry revenue down **29.08%** and coal machinery equipment revenue down **35.67%**, while sales and financial expenses significantly decreased by **37.68%** and **39.94%** respectively, and operating cash flow improved by **38.75%** Operating Revenue Composition | Category | 2016 Operating Revenue (yuan) | YoY Change | | :--- | :--- | :--- | | **Total** | **856,527,703.61** | **-20.39%** | | **By Industry** | | | | Machinery Industry | 515,407,735.59 | -29.08% | | Coal Sales and Mining Services | 243,840,837.93 | -24.33% | | **By Product** | | | | Coal Machinery Equipment | 382,702,158.07 | -35.67% | | Printing Equipment | 103,236,364.66 | -5.79% | | **By Region** | | | | Exports | 29,322,426.28 | 2,410.42% | Major Expense Items | Expense Item | 2016 (yuan) | 2015 (yuan) | YoY Change | Explanation for Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 53,420,904.47 | 85,726,665.23 | -37.68% | Due to decline in sales of main coal machinery business | | Administrative Expenses | 91,204,001.44 | 103,844,910.38 | -12.17% | - | | Financial Expenses | 25,141,771.23 | 41,857,722.88 | -39.94% | Due to reduced interest from financing sale-leasebacks and bank borrowings | Key Cash Flow Statement Items | Item | 2016 (yuan) | 2015 (yuan) | YoY Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 139,077,066.73 | 100,238,444.69 | 38.75% | | Net Cash Flow from Investing Activities | 11,696,105.80 | 219,399,534.02 | -94.67% | | Net Cash Flow from Financing Activities | -175,650,223.61 | -385,605,184.15 | -54.45% | [Analysis of Assets and Liabilities](index=17&type=section&id=IV.%20Analysis%20of%20Assets%20and%20Liabilities) As of 2016 year-end, total assets decreased by **9.30%** to **2.66 billion yuan**, with accounts receivable at **26.27%** (down from **30.83%**) and cash at **5.63%** (down from **8.52%**), while short-term borrowings significantly decreased from **21.35%** to **14.83%** of total assets, indicating debt optimization Key Asset and Liability Items | Key Asset and Liability Item | Amount at 2016 Year-End (yuan) | Proportion of Total Assets | Amount at 2015 Year-End (yuan) | Proportion of Total Assets | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 150,067,677.19 | 5.63% | 250,235,393.87 | 8.52% | | Accounts Receivable | 699,651,195.02 | 26.27% | 905,356,977.41 | 30.83% | | Inventories | 442,050,527.46 | 16.60% | 462,682,405.84 | 15.76% | | Fixed Assets | 512,225,192.85 | 19.23% | 569,593,924.08 | 19.40% | | Short-Term Borrowings | 394,999,800.00 | 14.83% | 626,889,200.00 | 21.35% | [Significant Asset and Equity Disposals](index=18&type=section&id=VI.%20Significant%20Asset%20and%20Equity%20Disposals) The company sold a **24.531%** equity stake in Baishupo Coal to its controlling shareholder, Mr. Zhao Duxue, for **139 million yuan** via public auction, aiming to optimize structure, recover investments, and positively impact 2016 performance - On December 28, 2016, the company sold a **24.531%** equity stake in Baishupo Coal Mine to its controlling shareholder, Zhao Duxue[59](index=59&type=chunk) Transaction Details | Transaction Detail | Content | | :--- | :--- | | **Equity Sold** | 24.531% equity stake in Baishupo Coal | | **Transferee** | Zhao Duxue (Company's Controlling Shareholder) | | **Transaction Price** | 139 million yuan | | **Pricing Principle** | Public Auction | | **Impact on Company** | Optimized corporate structure, recovered investment and funds, positively impacted 2016 performance | [Analysis of Major Holding and Participating Companies](index=19&type=section&id=VII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, major subsidiaries showed mixed performance, with Shandong Chengtong Forging and Yulin Tianning Mining profitable, while others like Shandong Xinchuan Machinery and Changle Wutu Coal Mine incurred losses, reflecting industry operational pressures Operating Performance of Major Subsidiaries | Major Subsidiary Name | 2016 Operating Revenue (yuan) | 2016 Net Profit (yuan) | | :--- | :--- | :--- | | Shandong Chengtong Forging Co., Ltd. | 63,740,292.72 | 808,930.70 | | Yulin Tianning Mining Services Co., Ltd. | 90,908,443.65 | 2,976,715.28 | | Shandong Xinchuan Machinery Co., Ltd. | 105,665,853.32 | -3,018,317.37 | | Changle Wutu Coal Mine Co., Ltd. | 2,531,164.05 | -21,019,368.83 | | Shandong Changkongyan Aviation Technology Co., Ltd. | 916,848.22 | -4,513,966.29 | [Outlook for Company's Future Development](index=21&type=section&id=IX.%20Outlook%20for%20Company%27s%20Future%20Development) The company will pursue a dual-main business strategy, deepening the 'four-pronged' approach in coal machinery and expanding overseas, while supporting new sectors like aviation and 3D printing, adopting online gaming as a new growth point, integrating subsidiaries, and strengthening risk management against industry, policy, transformation, and funding challenges - Company Development Strategy: - **Coal Machinery Sector**: Strengthen the 'four-pronged' strategy (refinement, complete sets, automation, service-oriented) and expand into overseas markets[63](index=63&type=chunk)[64](index=64&type=chunk) - **New Business Sectors**: Increase support for aviation, 3D printing, and industrial robots[63](index=63&type=chunk)[64](index=64&type=chunk) - **New Growth Point**: Adopt online gaming and services as a new strategic direction to improve profitability[63](index=63&type=chunk)[64](index=64&type=chunk) - **Subsidiary Management**: Integrate subsidiaries, promoting survival of the fittest[63](index=63&type=chunk)[64](index=64&type=chunk) - The company reiterated the four major risks it faces: industry risk, policy risk, transformation risk, and funding risk[66](index=66&type=chunk) Significant Matters [Profit Distribution](index=23&type=section&id=I.%20Company%27s%20Ordinary%20Share%20Profit%20Distribution%20and%20Capital%20Reserve%20Capitalization) The company has not distributed cash dividends or capitalized capital reserves for three consecutive years (2014-2016), with the 2016 board proposal for no distribution attributed to business transformation, strategic funding needs, and prior year loss compensation - The company's profit distribution plans for **2014, 2015, and 2016** consistently involved no dividends and no capitalization[70](index=70&type=chunk)[72](index=72&type=chunk) - The reasons for no dividend distribution in 2016 include the company's business transformation, the need to reserve funds, and the requirement to cover previous years' losses[72](index=72&type=chunk)[74](index=74&type=chunk) [Significant Litigation and Arbitration Matters](index=29&type=section&id=XII.%20Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company was involved in a significant lawsuit against Inner Mongolia Jinyue Energy Group for **68.41 million yuan** in capital occupation fees, with a judgment received but uncertain enforcement outcome Significant Litigation and Arbitration Matters | Plaintiff | Defendant | Amount Involved (million yuan) | Progress | | :--- | :--- | :--- | :--- | | Shandong Mining Machinery | Inner Mongolia Jinyue Energy Group Co., Ltd. | 68.41 | Judgment received, not yet enforced | [Significant Related Party Transactions](index=29&type=section&id=XVI.%20Significant%20Related%20Party%20Transactions) A significant related party transaction involved the company selling a **24.531%** equity stake in Baishupo Coal to its controlling shareholder, Mr. Zhao Duxue, for **139 million yuan** via public auction, positively impacting 2016 performance Significant Related Party Transactions | Related Party | Relationship | Transaction Content | Transfer Price (million yuan) | Transaction Gain/Loss (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Zhao Duxue | Company's Controlling Shareholder | Sale of Baishupo Coal Equity | 139 | 50.56 | [Significant Contracts and Their Performance](index=30&type=section&id=XVII.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company provided **50 million yuan** in external guarantees and **35 million yuan** for a subsidiary, while engaging in entrusted wealth management totaling **1.205 billion yuan** with **2.166 million yuan** in actual gains/losses - As of the reporting period end, the company's actual external guarantee balance was **50 million yuan**, and for subsidiaries, it was **35 million yuan**, totaling **5.00%** of the company's net assets[98](index=98&type=chunk)[99](index=99&type=chunk) Entrusted Wealth Management | Item | Amount (million yuan) | | :--- | :--- | | Source of Entrusted Wealth Management Funds | Own Funds | | Cumulative Entrusted Wealth Management Amount | 1,204.85 | | Actual Gain/Loss During Reporting Period | 2.166 | [Explanation of Other Significant Matters](index=42&type=section&id=XIX.%20Explanation%20of%20Other%20Significant%20Matters) The company's stock was suspended from trading on August 2, 2016, for major asset restructuring, with a preliminary plan approved in January 2017 to acquire online gaming company assets - The company's stock was suspended from trading on **August 2, 2016**, due to planning a major asset restructuring, and in **January 2017**, it disclosed a preliminary plan to issue shares to acquire gaming company assets[113](index=113&type=chunk)[114](index=114&type=chunk) Share Changes and Shareholder Information [Share Changes](index=43&type=section&id=I.%20Share%20Changes) During the reporting period, the company's total share capital of **534 million shares** remained unchanged, but the share structure shifted due to former chairman Mr. Zhao Duxue's departure, resulting in a **39.95 million** decrease in restricted shares and a corresponding increase in unrestricted shares - The main reason for the share change was the resignation of controlling shareholder Mr. Zhao Duxue from his chairman position, leading to the release of some of his shares from restrictions according to executive departure regulations[118](index=118&type=chunk) Share Change Details | Share Type | Before Change (shares) | After Change (shares) | Change (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 114,934,237 | 74,988,146 | -39,946,091 | | Unrestricted Shares | 419,065,763 | 459,011,854 | +39,946,091 | | **Total Share Capital** | **534,000,000** | **534,000,000** | **0** | [Shareholders and Actual Controller Information](index=44&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of the reporting period end, the company had **48,344** ordinary shareholders, with Mr. Zhao Duxue as controlling shareholder and actual controller, holding **24.02%** of shares, of which approximately **66%** were pledged, and other top ten shareholders held less than **2%** - The company's controlling shareholder and actual controller is Zhao Duxue, with a shareholding ratio of **24.02%**[122](index=122&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - Of the **128,246,686 shares** held by controlling shareholder Mr. Zhao Duxue, **85,000,000 shares** are pledged[122](index=122&type=chunk) Directors, Supervisors, Senior Management, and Employees [Changes in Directors, Supervisors, and Senior Management](index=50&type=section&id=II.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, significant senior management changes occurred, with founder Mr. Zhao Duxue resigning as chairman, succeeded by Mr. Zhao Huatao, and Mr. Zhang Xingchun appointed Deputy General Manager, Board Secretary, and later CFO and director - Zhao Duxue resigned as chairman due to personal reasons on **June 7, 2016**[133](index=133&type=chunk) - Zhao Huatao resigned as CFO on **June 7, 2016**, and was elected as the company's new chairman[133](index=133&type=chunk) [Employee Information](index=54&type=section&id=V.%20Company%20Employee%20Information) As of the reporting period end, the company had **1,875** employees, with production personnel comprising nearly **70%** (**1,309** individuals), and employees with college degrees or below accounting for nearly **90%** (**1,686** individuals) Employee Composition | Category | Number of Employees (persons) | Proportion | | :--- | :--- | :--- | | **Professional Composition** | | | | Production Personnel | 1,309 | 69.81% | | Technical Personnel | 277 | 14.77% | | Sales Personnel | 146 | 7.79% | | Financial Personnel | 87 | 4.64% | | Administrative Personnel | 56 | 2.99% | | **Total** | **1,875** | **100.00%** | | **Educational Background** | | | | Below College Degree | 1,129 | 60.21% | | College Degree | 557 | 29.71% | | Bachelor's Degree | 178 | 9.49% | | Master's Degree or Above | 11 | 0.59% | | **Total** | **1,875** | **100.00%** | Corporate Governance [Internal Control Evaluation Report](index=58&type=section&id=IX.%20Internal%20Control%20Evaluation%20Report) The company's 2016 internal control self-evaluation, covering all entities, found no material weaknesses or significant deficiencies in financial or non-financial reporting, corroborated by a standard unqualified audit report from the accounting firm - The company's internal control self-evaluation concluded no material weaknesses or significant deficiencies in financial or non-financial reporting[161](index=161&type=chunk)[162](index=162&type=chunk) - The accounting firm issued a standard unqualified audit report on the company's internal controls[163](index=163&type=chunk) Financial Report [Audit Report](index=61&type=section&id=I.%20Audit%20Report) Beijing Yongtuo Certified Public Accountants issued a standard unqualified audit opinion on the company's 2016 financial statements, confirming fair presentation of financial position, operating results, and cash flows in accordance with accounting standards - The auditing firm is Beijing Yongtuo Certified Public Accountants (Special General Partnership)[167](index=167&type=chunk) - The audit opinion type is a standard unqualified opinion[167](index=167&type=chunk)[170](index=170&type=chunk) [Financial Statement Summary](index=61&type=section&id=II.%20Financial%20Statements) As of 2016 year-end, total assets were **2.664 billion yuan**, total liabilities **887 million yuan**, and parent equity **1.702 billion yuan**, with full-year operating revenue of **857 million yuan**, total costs of **951 million yuan**, and a net profit of **10.69 million yuan**, alongside **139 million yuan** in operating cash flow, **11.70 million yuan** net investing outflow, and **176 million yuan** net financing outflow Key Items from Consolidated Balance Sheet | Key Consolidated Balance Sheet Item | Period-End Balance (yuan) | Period-Start Balance (yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,770,004,470.03 | 1,897,352,376.48 | | Total Non-Current Assets | 893,592,380.83 | 1,039,278,532.81 | | **Total Assets** | **2,663,596,850.86** | **2,936,630,909.29** | | Total Current Liabilities | 872,850,209.91 | 1,153,823,696.06 | | **Total Liabilities** | **887,207,946.76** | **1,168,730,816.06** | | Total Equity Attributable to Parent Company Owners | 1,701,584,258.19 | 1,692,466,960.31 | | **Total Owners' Equity** | **1,776,388,904.10** | **1,767,900,093.23** | Key Items from Consolidated Income Statement | Key Consolidated Income Statement Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 856,527,703.61 | 1,075,908,394.07 | | II. Total Operating Costs | 950,700,299.00 | 1,378,715,890.73 | | III. Operating Profit | -39,934,685.12 | -250,774,510.74 | | IV. Total Profit | 10,482,795.49 | -254,143,307.11 | | V. Net Profit | 10,188,810.88 | -283,194,526.12 | | Net Profit Attributable to Parent Company Owners | 10,687,413.19 | -267,654,597.70 | Key Items from Consolidated Cash Flow Statement | Key Consolidated Cash Flow Statement Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 139,077,066.73 | 100,238,444.69 | | Net Cash Flow from Investing Activities | 11,696,105.80 | 219,399,534.02 | | Net Cash Flow from Financing Activities | -175,650,223.61 | -385,605,184.15 | | Net Increase in Cash and Cash Equivalents | -24,877,051.08 | -65,967,205.44 |

山东矿机集团股份有限公司 2016 年第三季度报告正文 证券代码：002526 证券简称：山东矿机 公告编号：2016-067 山东矿机集团股份有限公司 2016 年第三季度报告正文 1 山东矿机集团股份有限公司 2016 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人赵华涛、主管会计工作负责人张星春及会计机构负责人(会计主 管人员)杨昭明声明：保证季度报告中财务报表的真实、准确、完整。 2 山东矿机集团股份有限公司 2016 年第三季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,708,436,167.73 | 2,936,630,909. ...

山东矿机集团股份有限公司 2016 年半年度年度报告全文 山 东 矿 机 集 团 股 份 有 限 公 司 SHANDONG MINING MACHINERY GROUP CO., LTD. （住所：山东省昌乐县经济开发区大沂路北段） 2016 年半年度报告 二 0 一六年八月 1 山东矿机集团股份有限公司 2016 年半年度报告全文 第一节 重要提示、目录和释义 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。 所有董事均已出席了审议本报告的董事会会议。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 公司负责人赵华涛、主管会计工作负责人张星春及会计机构负责人(会计主 管人员)杨昭明声明：保证本半年度报告中财务报告的真实、准确、完整。 2 | 目录 | | --- | | 2016 | 半年度报告 2 | | --- | --- | | 第一节 | 重要提示、目录和释义 4 | | 第二节 | 公司简介 5 | | 第三节 | 会计数据和财务指标摘要 7 | | 第四节 | 董事会报告 9 | | ...

Financial Performance - The company's operating revenue for 2015 was CNY 1,075,908,394.07, a decrease of 25.99% compared to CNY 1,453,717,962.08 in 2014[19]. - The net profit attributable to shareholders was a loss of CNY 267,654,597.70, a significant decline from a profit of CNY 2,624,276.39 in 2014, representing a decrease of 10,299.18%[19]. - The total operating revenue for coal machinery equipment was CNY 594,180,784.70, accounting for 55.23% of total revenue, with a year-on-year decrease of 42.46%[40]. - The revenue from coal sales and mining services increased by 90.25% year-on-year, reaching CNY 322,261,467.47, representing 29.95% of total revenue[40]. - The company's total operating revenue decreased by 25.99% to CNY 1,075,908,394.07, while the operating cost decreased by 24.35% to CNY 877,016,310.48, resulting in a gross margin of 18.49%[42]. - The company reported a significant decline in export revenue, which fell by 88.58% to CNY 1,168,030.08, accounting for only 0.11% of total revenue[42]. - The total operating profit for the year was -177,430,538.05 CNY, compared to -31,353,751.75 CNY in the previous year, indicating a significant decline in profitability[190]. - The net profit for the year was -183,085,340.14 CNY, a decrease from -30,193,117.24 CNY year-over-year, reflecting ongoing financial challenges[190]. Cash Flow - The net cash flow from operating activities was CNY 100,238,444.69, recovering from a negative cash flow of CNY -13,762,239.71 in 2014[19]. - The cash flow from operating activities generated a net inflow of 100,238,444.69 CNY, a recovery from a net outflow of -13,762,239.71 CNY in the previous year[194]. - The cash flow from investing activities resulted in a net inflow of 219,399,534.02 CNY, compared to a net outflow of -324,170,813.14 CNY in the previous year, showing improved investment returns[194]. - The cash flow from financing activities showed a net outflow of -385,605,184.15 CNY, a decline from a net inflow of 138,369,340.53 CNY in the previous year, indicating increased debt repayment[194]. - The total cash outflow from financing activities was 1,349,651,779.61 CNY, an increase from 849,507,221.30 CNY in the previous year[198]. Assets and Liabilities - The total assets at the end of 2015 were CNY 2,936,630,909.29, down 22.11% from CNY 3,770,437,444.93 at the end of 2014[19]. - The company's total liabilities decreased from CNY 1,711,385,663.25 to CNY 1,168,730,816.06, reflecting a reduction of about 31.7%[180]. - The total equity attributable to shareholders decreased from CNY 1,950,755,844.10 to CNY 1,692,466,960.31, indicating a decline of approximately 13.2%[180]. - Cash and cash equivalents increased from CNY 206,003,955.71 to CNY 250,235,393.87, showing a growth of about 21.5%[178]. - Accounts receivable decreased from CNY 1,007,220,671.03 to CNY 905,356,977.41, a reduction of approximately 10.1%[178]. - Inventory decreased significantly from CNY 612,081,479.52 to CNY 462,682,405.84, representing a decline of about 24.4%[178]. Strategic Initiatives - The company is actively pursuing strategic transformation, although it faces risks related to technology, market, and management[5]. - The company is focusing on strategic transformation by developing new businesses, particularly in the aviation sector and laser additive manufacturing, which have shown promising results[35]. - The company plans to optimize its subsidiary operations by supporting those with growth potential while divesting from non-core businesses[36]. - The company aims to stabilize and refine its coal machine manufacturing segment while enhancing its coal mining service capabilities[71]. - The company plans to accelerate its overseas market expansion in line with the national "Belt and Road" strategy[71]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company plans to distribute at least 30% of the average distributable profit in cash over the next three years (2015-2017) if profits are available[78]. - The company did not distribute any dividends for the years 2014 and 2015, as the profits were either not available or negative[86]. - The company's cash dividend policy is compliant with its articles of association and has clear decision-making procedures[83]. Management and Governance - The company has a diverse management team with extensive experience in the mining machinery industry, including professionals with backgrounds in engineering and finance[141][145]. - The governance structure complies with relevant laws and regulations, ensuring effective management and control by the management team[157]. - The company maintains independence from its controlling shareholders in terms of business, personnel, assets, and finance[160]. - The company reported no significant internal control deficiencies during the reporting period, with all financial and non-financial report deficiencies being zero[168][169]. Risks and Challenges - The coal machinery industry continues to face challenges due to low demand and intense competition, impacting the company's performance[5]. - The company anticipates ongoing risks from industry downturns, policy changes, and challenges in its transformation efforts[73]. - The coal machine industry is facing significant challenges due to oversupply and low demand, impacting the company's main business[73].

山东矿机集团股份有限公司 2016 年第一季度报告正文 证券代码：002526 证券简称：山东矿机 公告编号：2016-026 山东矿机集团股份有限公司 2016 年第一季度报告正文 2016 年 4 月 1 山东矿机集团股份有限公司 2016 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人赵笃学、主管会计工作负责人赵华涛及会计机构负责人(会计主 管人员)杨昭明声明：保证季度报告中财务报表的真实、准确、完整。 2 山东矿机集团股份有限公司 2016 年第一季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 √ 适用 □ 不适用 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 106,811. ...

Financial Performance - The company's operating revenue for 2015 was ¥1,075,908,394.07, a decrease of 25.99% compared to ¥1,453,717,962.08 in 2014[19]. - The net profit attributable to shareholders was -¥267,654,597.70, representing a decline of 10,299.18% from ¥2,624,276.39 in the previous year[19]. - The total operating revenue for 2015 was ¥1,075.91 million, a decrease of 25.99% compared to ¥1,453.72 million in 2014, reflecting a decline in business performance[39]. - The company reported a net profit of -2,351,883.5 for the period, indicating significant losses across its subsidiaries[69]. - The net profit for the year was -183,085,340.14 CNY, a decrease from -30,193,117.24 CNY year-over-year, reflecting ongoing financial challenges[189]. - The total revenue from sales of goods and services was 1,173,053,896.65 CNY, down from 1,362,594,205.25 CNY in the previous year, indicating a decline in sales performance[192]. Cash Flow - The net cash flow from operating activities was ¥100,238,444.69, a significant improvement from -¥13,762,239.71 in 2014[19]. - The cash flow from operating activities generated a net inflow of 100,238,444.69 CNY, a recovery from a net outflow of -13,762,239.71 CNY in the previous year[193]. - The cash flow from investing activities resulted in a net inflow of 219,399,534.02 CNY, compared to a net outflow of -324,170,813.14 CNY in the previous year, indicating improved investment recovery[193]. - The cash flow from financing activities showed a net outflow of -385,605,184.15 CNY, a decrease from a net inflow of 138,369,340.53 CNY in the previous year, highlighting challenges in financing[193]. Assets and Liabilities - The total assets at the end of 2015 were ¥2,936,630,909.29, down 22.11% from ¥3,770,437,444.93 in 2014[19]. - The company's total assets decreased to CNY 2,566,305,416.18 from CNY 3,293,699,913.92, a reduction of approximately 22%[183]. - The company's total liabilities decreased from CNY 1,711,385,663.25 to CNY 1,168,730,816.06, representing a reduction of about 31.7%[179]. - The total current liabilities decreased from CNY 1,683,188,620.44 to CNY 1,153,823,696.06, a reduction of about 31.4%[179]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company’s net profit for 2015 was negative at -267.65 million yuan, resulting in no proposed cash dividend[86]. - The company plans to distribute at least 30% of the average distributable profit in cash over the next three years (2015-2017) if profits are available[78]. - The company did not distribute any dividends for the years 2014 and 2015 due to negative profits[86]. Strategic Initiatives - The company is actively pursuing strategic transformation, although it faces risks related to technology, market, and management[5]. - The company aims to enhance its coal machine manufacturing segment while focusing on high-end equipment manufacturing and automation[71]. - The company plans to leverage the "Belt and Road" initiative to expand its overseas market presence[71]. - The company is actively pursuing strategic transformation, including the development of new business areas such as aviation and 3D printing, to enhance overall competitiveness[36]. Research and Development - The company has a strong focus on technological innovation, holding 27 patents and being recognized as a "High-tech Enterprise" in Shandong Province[31]. - Research and development investment amounted to CNY 36,133,090.71, representing 3.36% of operating revenue, with a 42.73% increase in the number of R&D personnel to 314[51]. Market Conditions - The coal machinery industry continues to face challenges due to low demand and intense competition, impacting the company's performance[5]. - The company anticipates challenges due to the ongoing downturn in the coal industry, which may impact demand for coal machinery[73]. Management and Governance - The company has a diverse management team with extensive experience in the mining machinery industry, including professionals with backgrounds in engineering and finance[140]. - The governance structure of the company complies with relevant laws and regulations, ensuring effective management and oversight[156]. - The board of directors includes experienced professionals with a strong background in finance, engineering, and management, ensuring effective governance[140]. Employee and Incentive Programs - The total number of employees in the company is 2,190, with 1,754 in the parent company and 436 in major subsidiaries[150]. - The company has implemented a new employee incentive program aimed at improving productivity and retention rates, with an expected impact on performance metrics[97]. Financial Management - The company reported a non-operating income of ¥58.98 million in 2015, which was significantly higher than the previous years, indicating improved financial management[26]. - The company has committed to strict adherence to its promises regarding shareholding and dividend distribution[87].