Shandong Mining Machinery updates on share issuance, operations, and compliance

Shandong Mining Machinery Group Co., Ltd. has updated its supplementary legal opinion letter regarding the issuance of shares to specific targets, with the offering price set at 1.85 yuan per share. The company's main business, including coal mining machinery and smart bulk material conveying equipment, has experienced fluctuations. While revenue declined in 2024, the company anticipates a recovery in 2025 due to stable demand for coal mining equipment and expansion into international markets.

The company's subsidiary, Chengtong Forging, is actively pursuing the acquisition of land to resolve a land use defect, though this remains uncertain. Additionally, another subsidiary, Tianliyuan, has met the necessary conditions for renewing its printing business license, with no significant uncertainties reported. Shandong Mining Machinery Group also confirmed that its operating cash flow turned positive in 2024, improving its liquidity.

The targeted share issuance to Zhao Huapeng, son of the actual controller Zhao Duxue, aims to strengthen the company’s control stability and provide capital for business development. The funds are earmarked to supplement working capital, enhancing the company’s financial health and market competitiveness. The company also clarified that its investments in Chongqing Gas and Chongqing Energy Investment Group are classified as financial investments due to their passive nature and low synergy with core operations.