Shandong Mining Machinery Group updates on non-public offering, related-party subscription

Shandong Mining Machinery Group Co., Ltd. (SZSE:002526) announced updates regarding its non-public offering of shares. The company plans to raise up to RMB 300 million for working capital, with the offer price set at RMB 1.85 per share. Zhao Huapeng, son of the actual controller, will subscribe to the offering, aiming to strengthen control and provide financial support for business development. This transaction is considered a related party transaction. The offering has been approved by the board of directors and shareholders, with an 18-month lock-up period for the subscribed shares.

The company's recent performance shows a decline in revenue and net profit, attributed to intense market competition and reduced bidding prices. Sales expenses increased due to market expansion efforts. The operating cash flow has been volatile, with significant outflows in 2022 and 2023, primarily due to extended credit terms, increased inventory for large projects, and deferred revenue recognition. Shandong Mining Machinery Group has also addressed issues such as a land use defect for its heavy forging workshop and the renewal of its printing business license, confirming no major uncertainties.