Shandong Mining Machinery Group Co., Ltd.
Stock Code: 002526 Stock Abbreviation: Shandong Mining Machinery
(North Section of Dayi Road, Economic Development Zone, Changle County, Weifang City, Shandong Province)
2024 Annual Issuance of A-Shares to Specific Targets
Prospectus (Revised Draft)
Sponsor (Lead Underwriter)
15th Floor, Building 8, No. 195 Hong Kong East Road, Laoshan District, Qingdao City, Shandong Province
June 2026
Statement
The Company and all directors and senior management warrant that this prospectus contains no false records, misleading statements, or major omissions, and assume legal responsibility for its truthfulness, accuracy, and completeness.
The person in charge of the Company, the person in charge of accounting work, and the person in charge of the accounting department guarantee the truthfulness and completeness of the financial and accounting information in this prospectus.
Any decision or opinion made by the CSRC or the exchange regarding this issuance does not indicate their guarantee of the truthfulness, accuracy, or completeness of the application documents and disclosed information, nor does it constitute a substantive judgment or guarantee of the issuer's profitability, investment value, or investor returns. Any statement to the contrary is a false representation.
According to the Securities Law, the issuer is solely responsible for changes in its operations and earnings following the issuance of these securities.
Investors shall independently judge the investment value of the issuer, make their own investment decisions, and bear the investment risks arising from changes in the issuer's operations, earnings, or securities price after the issuance.
Significant Matters Notice
This notice provides a brief summary of risk factors and other important matters requiring special attention. Investors should read the full prospectus before making decisions.
I. Special Risk Factors
(I) Industry Policy Risk
Under the "Carbon Peaking and Carbon Neutrality" background, adjustments to policies related to the coal industry, environmental protection, energy conservation, emission reduction, and new energy development may affect the market environment and development space of the coal machinery industry, leading to downward market risks.
(II) Cyclical Fluctuation Risk of the Coal Industry
The Company primarily provides coal mining equipment, such as hydraulic supports and scraper conveyors, to coal mining enterprises. The coal industry is cyclical and highly correlated with the macroeconomy. Consequently, the Company's operations are inevitably affected by national macroeconomic conditions and cyclical fluctuations in the coal industry. While structural reforms in coal supply have yielded results, any future downward cyclical fluctuation in the coal industry or sharp volatility in coal prices will directly impact the cash flow and capital expenditure of coal enterprises, thereby affecting orders and performance for coal machinery equipment, posing a risk of declining operating results.
(III) Risk of Declining Operating Performance
During the reporting period, the Company's operating income was 2,697.5725 million yuan, 2,379.9523 million yuan, and 2,128.4508 million yuan, respectively. Net profit attributable to shareholders of the parent company was 171.7818 million yuan, 113.4449 million yuan, and 122.6016 million yuan, respectively. Net profit after deducting non-recurring gains and losses attributable to shareholders of the parent company was 137.2933 million yuan, 88.54 million yuan, and 52.1584 million yuan, respectively. In 2024 and 2025, net profit after non-recurring items decreased by 35.51% and 41.09% year-on-year, respectively, primarily due to lower bidding prices to maintain market share amid intense competition, leading to a decline in gross profit margin.
(IV) Risk of Raw Material Supply and Price Fluctuations
The Company's primary raw materials are steel, conveyor accessories, and rubber belts. Fluctuations in market prices will affect production costs and product gross margins. Additionally, rising raw material prices increase the demand for working capital, potentially causing liquidity strain.