Core Points - The 21st China International Coal Mining Technology Exchange and Equipment Exhibition is being held from October 28 to October 31, 2023, at the China International Exhibition Center and the Capital International Convention Center, covering a record area of 160,000 square meters [1][4] - The theme of this year's exhibition is "New Quality Empowerment, Intelligent Future," aimed at fostering high-level cooperation in the global mining equipment industry and promoting deep integration of technological and industrial innovation in the coal industry [4] Group 1 - The exhibition features 11 themed pavilions and showcases nearly 10,000 exhibits, with participating equipment weighing over 15,000 tons [10] - A total of 1,200 domestic and international companies from 18 countries and regions are participating, with notable exhibitors including China Energy Group, China Coal, and Huawei [10] - The expected attendance is over 150,000 visitors, marking the largest number of exhibitors and scale in the history of the event [10] Group 2 - The exhibition highlights advanced technologies and equipment across the entire coal production and processing industry chain, including intelligent mining, safety production, and clean utilization [10] - Companies like China Coal Zhangjiakou Coal Mining Machinery and Sandvik are showcasing innovative products, such as the intelligent scraper conveyor and fully automated tunneling machines [11][13] - The event serves as a significant platform for showcasing the achievements of China's coal industry and coal machinery manufacturing, facilitating international technical exchanges [18][19]

Investment Rating - The investment rating for Tianma Intelligent Control (688570) is "Buy" [3][7] Core Views - The company reported a revenue of 652 million yuan in the first half of 2025, a year-on-year decrease of 21.21%, and a net profit attributable to shareholders of 70 million yuan, down 65.72% year-on-year [1] - The company is actively expanding its intelligent manufacturing business while strengthening its coal business, focusing on unmanned scenarios and discrete intelligent control industries [3] - The company maintains a strong market position with a market share of 37.7% for its SAC system and 25.4% for its SAM system in the first half of 2025, despite facing increased competition [4] - The national policy continues to support coal mine intelligent construction, indicating significant growth potential in the industry [4] Financial Performance - In the first half of 2025, the company's main business revenue from unmanned intelligent mining control solutions was 426 million yuan, and spare parts revenue was 156 million yuan [4] - The company expects net profits for 2025, 2026, and 2027 to be 168 million yuan, 199 million yuan, and 224 million yuan respectively, with diluted EPS of 0.39 yuan, 0.46 yuan, and 0.52 yuan [7] - The company's gross margin is projected to decline from 45.1% in 2023 to 38.6% in 2025, reflecting competitive pressures [6] Strategic Initiatives - The company is making progress on its fundraising projects, which are expected to lay a solid foundation for the development of new businesses in intelligent manufacturing [5] - The company has completed its smart factory construction project, which is anticipated to create a second growth curve [5] - The company emphasizes shareholder returns, having distributed a cash dividend of 3.3 yuan per 10 shares for the 2024 fiscal year, amounting to 143 million yuan [7]

Core Viewpoint - Huabei Mining's operating performance continues to decline, with significant drops in revenue and net profit in the first half of 2025 compared to the previous year [1][5][7]. Financial Performance - In the first half of 2025, Huabei Mining reported operating revenue of 20.682 billion yuan, a year-on-year decrease of approximately 45% [1][5]. - The net profit attributable to shareholders was 1.032 billion yuan, down about 65% year-on-year [1][5]. - The company experienced a three consecutive period decline in revenue and net profit, with the first and second quarters of 2025 showing revenue of 10.599 billion yuan and 10.083 billion yuan, respectively, reflecting declines of 38.95% and 49.47% year-on-year [5][7]. Market Conditions - The coal market is characterized by an oversupply and weak demand, leading to a downward trend in coal prices [6][8]. - Despite the challenging market environment, Huabei Mining has maintained stable production operations and achieved safety milestones [6]. Debt and Cash Flow - As of the first half of 2025, the company's debt-to-asset ratio was 48.11%, an increase from the beginning of the year [2][11]. - The net operating cash flow was 2.126 billion yuan, a decrease of 60.63% compared to the same period last year [11]. Stock Market Performance - Huabei Mining's stock price has shown a slight decline from 14.07 yuan per share at the beginning of 2025 to 12.65 yuan per share by August 27, 2025 [3][12]. - The company has seen a reduction in holdings by institutional investors, with a decrease in shareholding from 3.82% to 1.06% over four consecutive quarters [4][12]. Future Outlook - The company anticipates a potential improvement in performance for the second half of 2025, supported by government policies and seasonal demand increases in the coal market [8][9].

Summary of Conference Call Records Company and Industry Overview - The conference call involved **Tian Di Technology** and **Tian Ma Intelligent Control**, both operating in the **coal mining and technology sector**. Tian Di Technology is a state-owned enterprise under the China Coal Technology Group, focusing on coal mining technology innovation. Tian Ma Intelligent Control specializes in unmanned intelligent mining control technology and equipment. Key Points and Arguments Tian Di Technology Performance - **2024 Performance Highlights**: The company reported a basic earnings per share of **0.633 yuan**, an increase of **11.1%** year-on-year [4] - **Market Position**: Ranked **6th** among global mining equipment manufacturers and **1st** among Chinese companies [3] - **Strategic Focus**: Emphasizes market-oriented and customer-centric strategies, with a push towards regional and international development [3] Industry Trends - **Coal's Role**: Coal remains a primary energy source in China's new energy system, with a stable position in energy security [4] - **Technological Advancements**: The focus on coal mine automation and intelligent systems is crucial for high-quality development in the coal industry [4][11] Research and Development - **R&D Investment**: The proportion of R&D personnel increased from **16%** to **25%** from 2020 to 2024, with significant advancements in coal mining technology [6] - **Innovation Achievements**: The company received over **200** awards and established **two national key laboratories** in 2024 [5] Financial Performance and Shareholder Returns - **Dividends**: The company plans to distribute a cash dividend of **3.17 yuan** per ten shares, totaling **1.3 billion yuan**, marking a **50.04%** payout ratio [8] - **Cash Flow Management**: The company has maintained a strong cash flow, with cumulative cash dividends of **5.34 billion yuan** since its listing [8] Tian Ma Intelligent Control Performance - **Company Overview**: Established in 2001, Tian Ma focuses on unmanned intelligent mining control technology and has been listed on the STAR Market since June 2023 [13] - **Market Share**: The company holds a **38.5%** market share in its primary SAC system, leading the industry [15] Future Outlook - **Market Growth**: The coal mining sector is expected to see continued growth, with a focus on intelligent mining solutions [14][15] - **Technological Integration**: The integration of AI and robotics is anticipated to enhance coal mining operations, pushing towards full automation [38][40] Governance and ESG Initiatives - **Corporate Governance**: The company has established a robust governance framework, enhancing transparency and accountability [7] - **ESG Commitment**: The company has initiated an ESG reporting mechanism, addressing stakeholder concerns and promoting sustainable practices [8] Challenges and Risks - **Market Volatility**: Fluctuations in coal prices and demand may impact financial performance, necessitating strategic adjustments [14] - **Regulatory Environment**: Compliance with national policies on energy and environmental standards is critical for operational continuity [44][45] Additional Important Information - **Investor Relations**: The company actively engages with investors, seeking feedback to improve operational performance and market recognition [2] - **Technological Leadership**: Tian Di Technology is recognized as a leader in coal mine automation, driving industry standards and innovations [11][12] This summary encapsulates the key discussions and insights from the conference call, highlighting the performance, strategies, and future outlook of both companies within the coal mining technology sector.