山东矿机(002526) - 2018 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice and Risk Statement The company's board and management guarantee report accuracy, highlighting key risks from policy changes, coal industry cycles, business transformation, and rising costs - The company faces four major risks: policy risks from coal and environmental policy adjustments, industry risks from coal market fluctuations, transformation risks in shifting to online gaming and internet services, and cost volatility risks from rising raw material and labor costs[5] - The board approved the 2018 semi-annual profit distribution plan: no cash dividends or bonus shares, but a capital reserve transfer of 7 shares for every 10 shares to all shareholders[6] Definitions This section defines key abbreviations for companies and business entities, including 'Linyou Interactive' and 'Huaneng Equipment', for report clarity - Key entities mentioned in the report include: Linyou Interactive (Beijing Linyou Interactive Technology Co., Ltd.), the core subsidiary for online gaming and internet services; and Huaneng Equipment (Shandong Mining Machine Huaneng Equipment Manufacturing Co., Ltd.), a newly established wholly-owned subsidiary for traditional coal machinery and sales businesses[11] Company Profile and Key Financial Indicators Company Profile Shandong Mining Machine Group Co., Ltd. (stock code: 002526) is listed on the Shenzhen Stock Exchange, with Zhao Hatao as its legal representative | Item | Content | | :--- | :--- | | Stock Abbreviation | Shandong Mining Machine | | Stock Code | 002526 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhao Hatao | Key Accounting Data and Financial Indicators In H1 2018, operating revenue grew by 95.42% to 965.57 million yuan, and net profit attributable to shareholders surged 396.45% to 74.33 million yuan, indicating strong growth and healthy cash flow | Key Financial Indicators | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 965,565,841.38 | 494,104,945.71 | 95.42% | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 74,327,003.78 | 14,971,690.39 | 396.45% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) (yuan) | 70,344,727.01 | 10,699,741.97 | 557.44% | | Net Cash Flow from Operating Activities (yuan) | 148,433,701.74 | 68,867,083.87 | 115.54% | | Basic Earnings Per Share (yuan/share) | 0.0710 | 0.0217 | 227.19% | | Weighted Average Return on Net Assets | 3.21% | 0.88% | 2.33% | | Total Assets (yuan) | 3,093,410,527.99 | 3,060,713,254.65 | 1.07% | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 2,364,124,850.64 | 2,278,644,256.93 | 3.75% | Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 3.98 million yuan, primarily from government grants, entrusted investment income, and asset disposals, impacting net profit but showing strong core profitability | Item | Amount (yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 518,661.82 | | Government Grants Recognized in Current P&L | 1,827,270.00 | | Gains/Losses from Entrusted Investments or Asset Management | 2,014,737.53 | | Other Non-operating Income and Expenses | 532,628.20 | | Total | 4,893,297.55 | | Less: Income Tax Impact | 747,912.12 | | Less: Impact on Minority Interests (After Tax) | 163,108.66 | | Net Non-recurring Gains and Losses | 3,982,276.77 | Business Overview Main Businesses During the Reporting Period The company pursues a dual-core strategy of 'coal machinery, coal sales, and mining services' and 'online gaming and internet services', with both segments showing significant growth - The company has established a dual-core operating model: Traditional Business: coal machinery production (hydraulic supports, conveyors, etc.), coal sales, and coal mining services, with performance gradually improving due to the coal market recovery; Emerging Business: online gaming and internet services, which has become a new profit growth point after the acquisition of Linyou Interactive in 2017[28] Core Competitiveness Analysis Core competencies include over sixty years of management experience, strong R&D, advanced manufacturing, comprehensive product lines, and public company brand advantages - Core competitiveness covers seven major advantages: management, team, technology, equipment, products, brand, and platform, with technological advantages in over a hundred patents and integrated complete equipment support, and product advantages in 'three machines and one support' and one-stop service[32][33] Management Discussion and Analysis Operating Overview All business segments experienced healthy growth, with coal-related revenue up 78.99% to 704.51 million yuan and gaming revenue at 139 million yuan, supported by internal business integration - Coal Machinery, Coal Sales, and Coal Mining Services achieved 704.51 million yuan in sales revenue in H1, a 78.99% YoY increase[36] - Online Gaming subsidiary Linyou Interactive achieved 139 million yuan in sales revenue during the reporting period, contributing significantly to performance[37] - The company underwent internal business integration, transferring coal machinery production and coal sales to its wholly-owned subsidiary Shandong Mining Machine Huaneng Equipment Manufacturing Co., Ltd., with the parent company shifting to strategic investment and capital operation[37] Main Business Analysis Total operating revenue increased 95.42%, with machinery manufacturing, coal sales, and gaming contributing significantly, all showing improved gross margins due to market recovery and acquisition | Key Financial Data | Current Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 965,565,841.38 | 494,104,945.71 | 95.42% | Increased orders, increased sales revenue | | Operating Cost | 726,748,920.54 | 412,096,027.39 | 76.35% | Increased sales revenue, corresponding increase in costs | | Financial Expenses | 2,785,650.74 | 7,379,613.83 | -62.25% | Reduced bank borrowings | | Income Tax Expense | 25,138,482.96 | 67,715.35 | 37,023.76% | Increased profit and consolidation of Linyou Interactive data | | Net Cash Flow from Operating Activities | 148,433,701.74 | 68,867,083.87 | 115.54% | Increased business volume, increased collections | | Net Cash Flow from Investing Activities | -100,965,454.19 | 117,646,646.12 | -185.82% | Increased purchase of wealth management products | | Operating Revenue Composition by Industry | Amount (yuan) | Proportion of Operating Revenue | Gross Margin | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Machinery Manufacturing | 676,222,690.79 | 70.03% | 23.04% | 1.93% | | Coal Sales and Coal Mining Services | 150,333,095.13 | 15.57% | 27.14% | 33.00% | | Gaming Segment | 139,010,055.46 | 14.40% | 30.39% | 30.39% | Assets and Liabilities Analysis Total assets slightly increased to 3.09 billion yuan, with short-term borrowings decreasing significantly, indicating reduced debt pressure, while 53.35 million yuan in assets are restricted - Short-term borrowings as a proportion of total assets decreased from 10.92% in the prior year to 3.56% at the end of the reporting period, indicating eased short-term debt pressure[45] | Restricted Asset Item | Book Value at Period End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,300,000.00 | Bank Acceptance Bill Deposit | | Cash and Cash Equivalents | 3,035,282.91 | Letter of Guarantee Deposit | | Cash and Cash Equivalents | 1,000,000.00 | Litigation Freeze | | Fixed Assets | 34,737,491.06 | Pledged for Loans | | Intangible Assets | 10,273,158.61 | Pledged for Loans | | Total | 53,345,932.58 | | Investment Analysis Investment increased by 450% to 22 million yuan, with 10.03 million yuan in matching funds raised for restructuring, the remaining 29,400 yuan permanently supplementing working capital - Investment during the reporting period was 22 million yuan, a 450% increase from 4 million yuan in the prior year[48] - The company completed 10.03 million yuan in matching funds raised in March 2018 to cover restructuring intermediary fees, with the remaining 29,400 yuan (including interest) permanently supplementing working capital[55][56] Analysis of Major Holding and Participating Companies Linyou Interactive and Yulin Tianning Mining Service were major profit contributors, with net profits of 32.70 million yuan and 30.64 million yuan respectively, alongside profitable traditional manufacturing subsidiaries | Major Subsidiary Name | Main Business | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | | Beijing Linyou Interactive Technology Co., Ltd. | Online Gaming | 139,010,055.46 | 32,703,357.42 | | Yulin Tianning Mining Service Co., Ltd. | Coal Mining Services | 100,152,929.56 | 30,638,644.02 | | Shandong Xinchuan Machinery Co., Ltd. | Machinery Manufacturing | 85,522,606.97 | 4,482,406.59 | | Shandong Chengtong Forging Co., Ltd. | Machinery Manufacturing | 66,228,981.51 | 3,584,171.59 | Forecast of Operating Performance for Jan-Sep 2018 Net profit attributable to shareholders for Jan-Sep 2018 is projected to be 105 million to 123 million yuan, a 185.51% to 234.46% increase, driven by coal market recovery and gaming segment contributions | Performance Forecast | Jan-Sep 2018 | | :--- | :--- | | Net Profit Attributable to Parent Company (Range, ten thousand yuan) | 10,500 至 12,300 | | Net Profit Attributable to Parent Company (Change Rate) | 185.51% 至 234.46% | Significant Events Profit Distribution and Capital Reserve to Share Capital Increase Plan The company proposes no cash dividends but a 7-for-10 share capital increase from capital reserves, raising total share capital from 1.05 billion to 1.78 billion shares, pending shareholder approval | Distribution/Conversion Plan | Details | | :--- | :--- | | Bonus Shares per 10 Shares | 0 shares | | Dividend per 10 Shares (yuan) | 0 yuan | | Capital Reserve to Share Capital Increase per 10 Shares | 7 shares | | Share Capital Base | 1,048,702,257 shares | Major Asset Restructuring The acquisition of 100% equity in Linyou Interactive was completed, with new shares issued for asset purchase and matching funds listed in January and April 2018, respectively - The company completed major asset restructuring by acquiring 100% equity of Linyou Interactive; newly issued shares for asset acquisition (80,893,681 shares) were listed on January 2, 2018, and newly issued shares for matching funds (1,990,000 shares) were listed on April 10, 2018[102][103] Internal Business Integration and Organizational Adjustment Traditional coal machinery and sales businesses were transferred to Huaneng Equipment, transforming the parent company into a strategic investment, capital operation, and supervision platform - The company transferred traditional businesses like coal machinery production and coal sales to its wholly-owned subsidiary Huaneng Equipment, with the parent company transforming into a strategic investment, capital operation, and supervision platform[105] Litigation Matters A major lawsuit against Inner Mongolia Jinyue Energy Group for 68.41 million yuan in fund occupation fees is ongoing, with the execution outcome currently uncertain - The company is involved in a major lawsuit with an amount of 68.41 million yuan against Inner Mongolia Jinyue Energy Group, with the outcome of the judgment execution is currently uncertain[77] Share Changes and Shareholder Information Share Changes Total share capital increased from 615 million to 1.05 billion shares due to new share issuances for asset acquisition, matching funds, and a capital reserve to share capital increase - During the reporting period, the company's total share capital increased from 614,893,681 shares to 1,048,702,257 shares, due to non-public issuance of new shares and capital reserve to share capital increase[109] - Share changes mainly include: issuance of 80,893,681 new shares for asset acquisition, 1,990,000 new shares for matching funds, and a capital reserve to share capital increase of 431,818,576 shares[109][114] Shareholder Numbers and Shareholding Status The company has 46,461 common shareholders, with top shareholder Zhao Duxue holding 20.79% (partially pledged), and new shareholders Zhou Lifei and Liao Peng joining the top ten - At the end of the reporting period, the total number of common shareholders was 46,461 accounts[116] | Top Five Shareholders | Shareholder Nature | Shareholding Percentage | Share Status | | :--- | :--- | :--- | :--- | | Zhao Duxue | Domestic Natural Person | 20.79% | Pledged 144,500,000 shares | | Zhou Lifei | Domestic Natural Person | 5.64% | Pledged 58,000,000 shares | | Liao Peng | Domestic Natural Person | 4.20% | - | | Zhang Yizhen | Domestic Natural Person | 1.55% | - | | Pan Yueran | Domestic Natural Person | 1.31% | - | Preferred Share Information Preferred Share Status The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[122] Directors, Supervisors, and Senior Management Changes in Directors, Supervisors, and Senior Management On May 8, 2018, the company completed board and supervisory board re-elections, with several directors and supervisors leaving and new members elected, ensuring management continuity - On May 8, 2018, due to re-election, several directors, supervisors, and senior management personnel changed: Yan Fengchun (Vice Chairman), Chen Xuewei (Director, Deputy General Manager), Zhao Shiwu (Director), Liu Kun (Independent Director), Shan Yuntao (Independent Director), and Zhu Yun (Supervisor) left office upon term expiration. Simultaneously, Zhang Yong was elected as Vice Chairman, Zhong Qingfu and Yang Guangbing as Directors, Zhang Songbai and Shen Wei as Independent Directors, and Pan Junwei as Supervisor[126] Corporate Bond Information Corporate Bond Status The company had no publicly issued corporate bonds listed on a stock exchange that were not due or not fully redeemed by the report approval date - The company had no corporate bonds that were not due or not fully redeemed by the due date[129] Financial Report Audit Report The 2018 semi-annual financial report was audited by Beijing Yongtuo Certified Public Accountants (Special General Partnership), receiving a standard unqualified audit opinion - This semi-annual report has been audited by Beijing Yongtuo Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[131] Financial Statements As of June 30, 2018, total assets were 3.09 billion yuan, owner's equity 2.36 billion yuan, total operating revenue 965.57 million yuan, and net profit 74.33 million yuan, with strong operating cash flow | Statement Item | Balance at Period End / Amount for Current Period (yuan) | | :--- | :--- | | Balance Sheet | | | Total Assets | 3,093,410,527.99 | | Total Liabilities | 671,793,088.54 | | Equity Attributable to Owners of the Parent Company | 2,364,124,850.64 | | Income Statement | | | Total Operating Revenue | 965,565,841.38 | | Net Profit Attributable to Owners of the Parent Company | 74,327,003.78 | | Cash Flow Statement | | | Net Cash Flow from Operating Activities | 148,433,701.74 | Notes to Consolidated Financial Statement Items Notes detail financial statement items, with main business revenue at 945 million yuan, primarily from coal machinery, coal sales, and the new gaming segment, reflecting increased market and R&D investment | Main Business Segment | Operating Revenue (yuan) | Operating Cost (yuan) | | :--- | :--- | :--- | | Coal Mining Machinery and Equipment | 554,175,020.99 | 428,674,280.35 | | Coal Sales and Coal Mining Services | 150,333,095.13 | 109,536,924.40 | | Gaming Segment | 139,010,055.46 | 96,765,011.51 | | Printing Equipment | 82,602,372.56 | 60,814,394.74 | | Building Materials Machinery and Equipment | 14,830,426.33 | 20,822,250.32 | | Other | 4,043,722.18 | 2,495,626.94 | | Total | 944,994,692.65 | 719,108,488.26 | Reference Documents Catalog Reference Documents This section lists reference documents available to investors, including the original semi-annual report, signed financial statements, and all legally disclosed documents and announcements - Reference documents include: - Original 2018 semi-annual report signed by the legal representative - Financial statements signed and sealed by relevant responsible persons - Originals of all legally disclosed documents and announcements during the reporting period[563]