Core Viewpoint - Shandong Mining Machinery (002526) reported a significant decline in both revenue and net profit for 2024, indicating increased market competition and pressure on the company's performance [1][4]. Financial Performance - The company achieved total revenue of 2.38 billion yuan in 2024, a year-on-year decrease of 11.77% [1][4]. - The net profit attributable to shareholders was 113 million yuan, down 33.96% year-on-year [1][4]. - The net profit after deducting non-recurring gains and losses was 88.54 million yuan, a decline of 35.51% compared to the previous year [1]. Market Competition - The decline in performance is attributed to intensified market competition, despite the company's established market share and brand reputation in the coal machinery sector [4]. - The company's revenue growth in 2023 was 12.17%, with net profit growth of 48.93%, contrasting sharply with the 2024 downturn [4]. R&D Investment - R&D investment for 2024 was 65.19 million yuan, a decrease of 19.18% year-on-year, representing 2.74% of total revenue, down 0.25 percentage points from the previous year [4]. - The reduction in R&D spending may hinder the company's competitiveness in technology innovation and product upgrades [4][6]. Smart Transformation - The company has made progress in its smart transformation, particularly in intelligent bulk material conveying equipment and electro-hydraulic control systems [5]. - Despite initial successes, the contribution of these new smart products to overall revenue remains limited, with traditional coal machinery products still dominating sales [6]. Shareholder Confidence - As of December 31, 2024, the number of shareholders decreased to 160,000, a drop of 10,000 or 5.88% from the previous period, indicating waning market confidence [7]. - The company's dividend proposal of 0.1 yuan per 10 shares, totaling 17.83 million yuan, represents only 15.72% of the net profit, which may not sufficiently boost investor confidence [7].