Core Viewpoint - Shandong Mining Machinery Group Co., Ltd. has responded to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, addressing challenges and measures related to its operational performance and financial status [1] Performance Decline Reasons and Industry Comparison - During the reporting period, Shandong Mining's operating revenues were 2,285.64 million, 2,404.99 million, 2,697.57 million, and 1,708.46 million, with a non-recurring net profit of 33.44 million, 96.55 million, 137.29 million, and 93.52 million, showing a year-on-year decline of 52.80% in the most recent period. The decline is attributed to decreased demand in the coal mining equipment industry and intensified competition [2] - The coal machinery industry is expected to reach a scale of 157 billion by 2026, but is currently in a mid-cycle adjustment phase. In contrast, the demand for intelligent bulk material conveying equipment is projected to grow, with the market size for belt conveyors expected to reach 39.2 billion by 2027 [2] - Compared to peers, Shandong Mining's revenue and profit trends differ due to variations in business scale, shareholder background, and product structure. For instance, Tian Di Technology, as an industry leader, shows different performance trends due to high capital investment and large business volume [2] Financial Condition Analysis - Accounts receivable at the end of each reporting period were 988.34 million, 1,219.39 million, 1,523.42 million, and 1,458.18 million, with over one-year accounts receivable accounting for 31.39%, 29.40%, 29.62%, and 33.41% respectively. The accounts receivable turnover rates were 3.35, 2.80, 2.43, and 1.38, influenced by extended payment terms and slow customer payments [4] - The net cash flow from operating activities was 32.84 million, -203.33 million, -185.66 million, and 146.28 million, primarily due to lower-than-expected collections and the use of bill discounting [4] - Inventory values at the end of each period were 606.04 million, 718.20 million, 746.37 million, and 866.18 million, with a significant increase in dispatched goods. The rise in inventory is justified by the growth in business scale and longer project cycles [4] - Contract liabilities increased from 180.53 million to 339.91 million, reflecting pre-received customer payments and aligning with the scale of orders on hand [4] Other Business Situations - The company's online gaming business saw revenues of 239.41 million, 18.37 million, 7.27 million, and 1.76 million, with a declining gross margin. The decline is attributed to management changes, product lifecycle issues, and regulatory impacts [5] - The company will focus on its core business of coal machinery and belt conveyors, discontinuing the expansion of its gaming business [5] Future Strategies - The company plans to enhance its core competitiveness and achieve performance recovery through the implementation of a "Five Modernization Strategy," increased market development efforts, and improved employee incentives [6]

Group 1: Report Overview - The research is about Shandong Mining Machinery in the special equipment industry, and the research date is May 15, 2025 [1][2][17] Group 2: Research Details 1. Basic Research Information - The research object is Shandong Mining Machinery, belonging to the special equipment industry. The reception time is May 15, 2025, and the reception staff are the secretary of the board Qin Decai and the securities representative Zhang Lili [17] 2. Detailed Research Institutions - The reception objects include investors' online questions and others [20] 3. Investor Questions and Company Responses - **Globalization Strategy**: The company uses its advantages, forms professional teams, participates in foreign industry exhibitions, and invites customers to visit. It has entered foreign markets and promoted business development through project radiation and word - of - mouth. It will seek cooperation in the whole industry chain and broader fields [24] - **Industry Outlook**: With the deepening of coal reform, the coal - machine manufacturing industry will combine modern information technologies such as big data, artificial intelligence, and the Internet of Things with products, enhancing competitiveness [24] - **Intelligent Bulk Material Conveying Equipment Business**: The business has developed rapidly. In 2024, the operating income was 291 million yuan, a year - on - year increase of 32.49%. The products have high intelligence and automation, and have entered the international market [24][25] - **Company Business**: Shandong Mining Machinery is a diversified group company mainly engaged in coal - machine production and sales, along with businesses such as intelligent bulk material conveying equipment, building materials machinery, packaging and printing machinery, and precision machining [25] - **Progress in Intelligent Products in 2024**: The self - developed electro - hydraulic control system achieved multiple sales. Many new products were developed and upgraded. Wireless sensors and controllers were developed, and relevant licenses and certifications were obtained [25][26] - **New Profit Growth Points**: The company will implement the "Five - Transformation Strategy", deepen the "Accessories Strategy", increase R & D investment, carry out technological innovation, and seek the integration of capital and industry [26]