Shandong Mining Machinery invests in new subsidiary, Datong Huaxin Heng Hui

Shandong Mining Machinery Group Co., Ltd. has announced the establishment of a new controlled subsidiary, Datong Huaxin Heng Hui Technology Co., Ltd. ("Huaxin Heng Hui"), through an investment of 6.5 million yuan. This represents a 65% equity stake in the new entity. The remaining 35% equity, totaling 3.5 million yuan, is held by Shanxi Henghui Hydraulic High-Tech Co., Ltd., a company established in 2005 specializing in hydraulic machinery and industrial control systems.

The new subsidiary, Huaxin Heng Hui, was registered on September 16, 2025, with a registered capital of 10 million yuan. Its business scope includes research, manufacturing, and sales of mechanical equipment, hydraulic components, industrial control systems, and environmental protection equipment. This investment aligns with Shandong Mining Machinery’s strategic goal of expanding its business layout, fostering resource sharing, and enhancing overall profitability and sustainable development.

This investment, funded by the company's own capital, does not constitute a related-party transaction or a significant asset restructuring. The company anticipates that Huaxin Heng Hui will be consolidated into its financial statements, while acknowledging potential operational, management, and policy risks associated with the new venture.