Core Viewpoint - Shandong Mining Machinery (002526.SZ) indicated that it will disclose any new development plans in accordance with regulations, and its reducers are used in coal machinery products such as scraper conveyors and belt conveyors [1] Company Summary - Shandong Mining Machinery is committed to timely information disclosure regarding new development plans [1] - The company’s reducers are utilized in key coal machinery products, including scraper conveyors and belt conveyors [1] Industry Summary - The coal machinery sector is supported by the use of reducers in essential equipment like scraper and belt conveyors, indicating ongoing demand in the industry [1]

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, providing detailed explanations about its performance and financial status [1] Performance Decline Reasons and Industry Comparison - During the reporting period, Shandong Mining's operating revenue was 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, leading to a significant drop in revenue from coal machinery [2] - Compared to industry peers, Shandong Mining's revenue and profit trends differ due to variations in business scale, shareholder background, and product structure. The company's performance decline is primarily due to reduced bidding prices in response to competition, resulting in lower revenue, alongside increased sales expenses. However, stable growth in downstream coal production and demand for coal machinery, along with equipment renewal policies, are expected to drive demand, with a forecasted recovery in growth by 2025 [3] Accounts Receivable and Credit Policy Analysis - At the end of each reporting period, the company's accounts receivable balances 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. The company explained that this was due to adjustments in credit policies, such as extending payment terms and relaxing payment conditions, which are commercially reasonable [4] Operating Cash Flow and Inventory Situation - The company's net cash flow from operating activities fluctuated significantly, not aligning with net profit trends, mainly due to market competition affecting payment collection and settlement methods, as well as large contract inventory occupying funds. The company has implemented measures to ensure cash collection, and the net cash flow from operating activities turned positive in 2024. The inventory book value at the end of each reporting period was 606.04 million, 718.20 million, 746.37 million, and 866.18 million, with a rapid increase in dispatched goods. The growth in inventory is attributed to the expansion of the belt conveyor business, and the provision for inventory impairment is higher than the industry average, indicating sufficient provisioning [5] Game Business Contraction and Future Planning - During the reporting period, the company's online game business revenue was 239.41 million, 18.37 million, 7.27 million, and 1.76 million, with gross margins of 33.20%, 36.51%, 64.10%, and -179.04%. The business has been continuously contracting due to the departure of the original management team, product lifecycle decline, and industry policies affecting the new game launch cycle. Moving forward, the management plans to focus on the core business of coal machinery and belt conveyors, discontinuing the expansion of the gaming business [6]