Zhengzhou Coal Mining Machinery : First Quarterly Report of 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Zhengzhou Coal Mining Machinery Group Company Limited

鄭州煤礦機械集團股份有限公司

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock code: 00564)

ANNOUNCEMENT

This announcement is made by Zhengzhou Coal Mining Machinery Group Company Limited ("Company" or "ZMJ") pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Please refer to the attached First Quarterly Report of 2021 released by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) and newspapers in the People's Republic of China on 26 April 2021.

By order of the Board

Zhengzhou Coal Mining Machinery Group Company Limited

Jiao Chengyao

Chairman

Zhengzhou, PRC, 26 April 2021

As at the date of this announcement, the executive Directors of the Company are Mr. JIAO Chengyao, Mr. XIANG Jiayu, Mr. JIA Hao, Mr. FU Zugang and Mr. WANG Xinying, the non- executive Directors are Mr. CUI Kai and Mr. YANG Dongsheng and the independent non- executive Directors are Mr. CHENG Jinglei, Mr. JI Feng, Ms. GUO Wenqing and Mr. FANG Yuan.

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First Quarterly Report of 2021

Zhengzhou Coal Mining Machinery Group Company Limited

鄭州煤礦機械集團股份有限公司

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock code: 00564)

IMPORTANT NOTICE

The board of directors, the board of supervisors, and the directors, supervisors and senior management of the Company warrant that there are no misstatements, misleading representations or material omissions in this report, and shall assume joint and several liability for the truthfulness, accuracy and completeness of its contents.

The financial report in this report is prepared under the PRC GAAP and is not audited. The currency unit in this report is RMB unless otherwise specified.

For the purpose of this quarterly report, the Company and its subsidiaries together shall be collectively referred to as the "Group". This quarterly report was approved on 26 April 2021 at the 4th meeting of the 5th session of the board of directors of the Company.

Board of Directors

Zhengzhou Coal Mining Machinery Group Company Limited

Jiao Chengyao (Chairman), Huang Hua (Senior Management responsible for finance and accounting) and Wang Jingbo (the head of the accounting department) warrant the truthfulness and completeness of the financial reports included in this quarterly report.

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First Quarterly Report of 2021

Stock Code: 601717

Company's Abbreviation: ZMJ

Zhengzhou Coal Mining Machinery Group Company Limited

First Quarterly Report of 2021

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First Quarterly Report of 2021

Contents

1. Important Notice ………………………………………………………………… 3

2. Basic Information of the Company ……………………………………………… 3

1. Significant Events ……………………………………………………………….. 8
2. Appendices ……………………………………………………………………… 13

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First Quarterly Report of 2021

1. Important Notice

1. The board of directors, board of supervisors of the Company and its directors, supervisors and members of senior management shall warrant that information included in this quarterly report is true, accurate and complete without any false statement, misleading representation or material omission, and they assume joint and several liability thereof.
2. All directors of the Company attended the meetings of the board of directors and reviewed the quarterly report.
3. Jiao Chengyao (the person-in-charge of the Company), Huang Hua (the person-in-charge of the accounting matters), and Wang Jingbo (the person-in-charge of accounting department of the Company (the head of the accounting department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.
4. The first quarterly report of the Company is unaudited.

2. Basic Information of the Company

2.1 Key financial data

			Unit: Yuan Currency: RMB
				Increase or decrease
	As at the end of the		As at the end of the	as at the end of the
		reporting period
	reporting period		previous year
		from the end of the
				previous year (%)
Total assets	35,595,701,654.32		33,714,415,299.94	5.58
Net assets attributable to
the shareholders of the	13,538,890,465.40		13,063,794,901.37	3.64
listed company
	From beginning of the		From beginning of the	Increase or decrease
		previous year to the end	from the same
	year to the end of the
		of the reporting period	period of last year
	reporting period
		of the previous year	(%)
Net cash flows from	212,287,831.42		-19,571,088.73	N/A
operating activities
	From beginning of the		From beginning of the	Increase or decrease
		previous year to the end	from the same
	year to the end of the
		of the reporting period	period of last year
	reporting period
		of the previous year	(%)
Operating revenue	7,676,725,085.99		5,941,232,246.25	29.21
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First Quarterly Report of 2021

Net profit attributable to
the shareholders of the		556,310,975.22		401,914,619.43		38.42
listed company
Net profit after
extraordinary profit and
loss attributable to the		472,567,628.47		429,330,597.44		10.07
shareholders of the listed
company
Weighted average return		4.19		3.25	Increased by 0.94
on net assets (%)			percentage points
Basic earnings per share		0.321		0.232		38.36
(RMB per share)
Diluted earnings per		0.320		0.230		39.13
share (RMB per share)
Extraordinary profit and loss items and amounts
√ Applicable □ Not applicable
					Unit: Yuan Currency: RMB
	Item				Amount for the period	Description
Profit or loss from disposal of non-current assets		22,966,360.21
Tax refund, exemption and reduction which were approved on a
ultra-vires basis or without official approval documents or on a
one-off basis
Government grants included in profit or loss for the current
period other than those closely related to the normal operation of
the Company, in compliance with national policies and		57,552,122.71
regulations, as well as the government grants entitled
continuously based on certain standard quota or quantity
Fund appropriation fee charged on non-financial enterprises and
included in profit or loss
Gain arising from the excess of fair value of identifiable net
assets of investees at the time of acquisition of investments over
the cost of investment in subsidiaries, associates and joint
ventures
Profit or loss arising from exchange of non-monetary assets
Profit or loss from entrusted investment or asset management		30,030,169.64
Provision for impairment of assets in case of force majeure such
as natural disasters
Profit or loss from debt restructuring				-501,052.63
Expenses for corporate restructuring, such as expenses for staff
arrangements and expenses for business combination
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First Quarterly Report of 2021

Profit or loss arising from the excess of consideration of
transaction over fair value in case of apparently unfair
consideration
Net profit or loss incurred by subsidiaries formed by the
consolidation of entities under common control for the period
from the beginning of the period to the date of consolidation
Profit or loss arising from contingencies unrelated to the normal
business operation of the Company
Profit or loss on the changes in fair value generated from
financial assets held for trading, derivative financial assets,
financial liabilities held for trading and derivative financial
liabilities and the investment income received from disposal of
financial assets held for trading, derivative financial assets,	-22,564,264.80
financial liabilities held for trading, derivative financial
liabilities and other debt investment, other than the effective
hedging business relating to the ordinary operating business of
the Company
Write back of the provision for impairment of receivables and	22,700,000.00
contract assets that are individually tested for impairment
Profit or loss from external entrusted loans
Profit or loss arising from the change in fair value of investment
properties which are subsequently measured by means of the
fair value model
Effect on profit or loss for the period of one-off adjustment to
profit or loss for the period according to requirements under
laws and regulations relating to taxation and accounting
Income of entrustment fees for entrusted operation
Other non-operating income and expenses other than the above	3,220,183.50
items
Other profit or loss items that meet the definitions of	-12,541,529.38
extraordinary profit or loss
Amount of effect on minority interests (after tax)	975,796.50
Amount of effect on income tax	-18,094,439.00
Total	83,743,346.75

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First Quarterly Report of 2021

2.2 The table below sets out the total number of shareholders and the shareholdings of the top 10 shareholders and the top 10 holders of tradable shares (or holders of shares not subject to trading moratorium) as at the end of the reporting period

						Unit: Share
Total number of shareholders (Units)					44,996
	Shareholdings of the top 10 shareholders
			Number of	Pledged or frozen
Name of shareholder	Shareholdings	Proportion	shares held			Nature of
as at the end of	subject to
(Full name)	(%)	Status of	Number of	shareholder
the period	trading
		shares	shares
			moratorium
Hong Yi Investment
Management (Henan)
Partnership (Limited	277,195,419	16.00		Pledged	28,429,985	Others
Partnership)
(泓羿投資管理(河南)合夥企
業(有限合夥))
Henan Machinery Investment
Group Co., Ltd.	243,892,381	14.08		Pledged	50,000,000	State-owned
(河南機械裝備投資集團有限		legal person
責任公司)
HKSCC NOMINEES	220,750,390	12.74		Unknown		Foreign legal
LIMITED			person
Henan Asset Management Co.,	69,209,157	3.99		Nil		State-owned
Ltd. (河南資產管理有限公司)			legal person
Hong Kong Securities Clearing	60,798,608	3.51		Nil		Foreign legal
Company Limited			person
YITAI GROUP (HONG	22,399,200	1.29		Unknown		Foreign legal
KONG) CO LIMITED			person
Industrial and Commercial
Bank of China Limited- Fuguo
Tianhui Selected Growth
Hybrid Securities Investment	20,000,020	1.15		Nil		Others
Fund (LOF)
(中國工商銀行股份有限公司
－富國天惠精選成長混合型
證券投資基金(LOF))
Jiang Shibo (蔣仕波)	19,376,080	1.12		Nil		Domestic
		natural person
Li Jun (李俊)	18,000,000	1.04		Nil		Domestic
		natural person
Gao Yaping (高雅萍)	15,416,816	0.89		Nil		Domestic
		natural person
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First Quarterly Report of 2021

Shareholdings of the top 10 holders of shares not subject to trading moratorium

	Number of tradable	Type and number of shares
Name of shareholder	shares held not subject
Type		Number of
	to trading moratorium		shares
Hong Yi Investment Management (Henan)
Partnership (Limited Partnership)	277,195,419	Ordinary shares in RMB		277,195,419
(泓羿投資管理(河南)合夥企業(有限合夥))
Henan Machinery Investment Group Co., Ltd.	243,892,381	Ordinary shares in RMB		243,892,381
(河南機械裝備投資集團有限責任公司)
HKSCC NOMINEES LIMITED	220,750,390	Overseas listed foreign		220,750,390
shares
Henan Asset Management Co., Ltd.	69,209,157	Ordinary shares in RMB		69,209,157
(河南資產管理有限公司)
Hong Kong Securities Clearing Company Limited	60,798,608	Ordinary shares in RMB		60,798,608
YITAI GROUP (HONG KONG) CO LIMITED	22,399,200	Overseas listed foreign		22,399,200
shares
Industrial and Commercial Bank of China Limited-
Fuguo Tianhui Selected Growth Hybrid Securities
Investment Fund (LOF)	20,000,020	Ordinary shares in RMB		20,000,020
(中國工商銀行股份有限公司－富國天惠精選成
長混合型證券投資基金(LOF))
Jiang Shibo (蔣仕波)	19,376,080	Ordinary shares in RMB		19,376,080
Li Jun (李俊)	18,000,000	Ordinary shares in RMB		18,000,000
Gao Yaping (高雅萍)	15,416,816	Ordinary shares in RMB		15,416,816
	Hong Yi Investment Management (Henan) Partnership (Limited
Description of the connected relationship or acting	Partnership) and Henan Asset Management Co., Ltd. have signed
the Acting-in-Concert Agreement and they are acting in concert.
in concert of the above shareholders
They hold 19.99% of shares of the Company in aggregate and have
	become the controlling shareholders of the Company.
Description of holders of preference shares with		N/A
voting rights restored and amount of shareholdings

Other notes:

1. As at the end of the reporting period, the total number of shareholders of the Company was 44,996, among which 44,935 were shareholders of A shares and 61 were shareholders of H shares.

2. HKSCC Nominees Limited holds H shares on behalf of numerous clients.

2.3 The table below sets out the total number of holders of preference shares and the shareholdings of the top 10 holders of preference shares and the top 10 holders of preference shares not subject to trading moratorium as at the end of the reporting period

• Applicable √ Not applicable

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First Quarterly Report of 2021

3. Significant Events

3.1 Material changes in major items of accounting statements and the financial indicators of the Company and the reason thereof

• Applicable □ Not applicable

1. Explanation for the changes in key indicators of Consolidated Balance Sheet

Unit: RMB0'000 Currency: RMB

		Closing		Closing	Percentage
		Amount for		Amount for
Item			of Change	Explanation
	the Current		the Previous
			(%)
		Period		Period
Financial assets						Owing to the addition of
381,733.06	295,441.40	29.21	short-term wealth
held for trading
					management products
Prepayments	65,433.57	49,889.48	31.16	Due to the increased
prepayments for materials
						Due to the disposal of equity
Long-term equity						in Hua Xuan (Shanghai)
28,442.50	37,880.11	-24.91	Equity Investment Fund Co.,
investments
					Ltd.* (華軒（上海）股權投
						資基金有限公司)
Right-of-use	131,036.53	78,479.12	66.97	Due to the addition of lease
assets	of plant
Long-term	475,864.19	362,600.02	31.24	Owing to the addition of
borrowings	bank borrowings
Lease liabilities	120,171.21	68,851.32	74.54	Due to the addition of lease
	of plant
2. Explanation for the changes in key indicators of Consolidated Statement of Cash flow
					Unit: RMB0'000 Currency: RMB
					Percentage
Item		Q1 2021		Q1 2020	of Change	Explanation
					(%)
Net cash flows						Mainly caused by increased
					cash received from sales of
from operating		21,228.78		-1,957.11	N/A
		goods and provision of
activities
					labour
Net cash flows						Mainly owing to the
from investing		-113,865.11		-79,773.80	N/A	purchase of
activities						wealth-management products
Net cash flows						Mainly owing to the addition
from financing		87,623.97		-16,863.91	N/A
		of bank borrowings
activities
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First Quarterly Report of 2021

3. Analysis on income and profit by business segment

Unit: RMB0'000 Currency: RMB

Item	Business segment	Q1 2021	Q1 2020	Percentage of
Change (%)
Total operating	Coal mining machinery	300,529.29	243,929.65	23.20
Auto parts	467,511.60	350,327.81	33.45
revenue
Total	768,040.89	594,257.46	29.24
Administration	Coal mining machinery	12,913.21	6,235.57	107.09
Auto parts	18,848.21	17,392.12	8.37
expenses
Total	31,761.42	23,627.69	34.42
	Coal mining machinery	1,018.39	-705.26	N/A
	Auto parts	2,680.36	2,252.59	18.99
Finance costs
Acquisition-related	2,762.74	2,896.76	-4.63
	centralized expenses
	Total	6,461.49	4,444.09	45.40
Credit impairment	Coal mining machinery	-4,842.54	-408.88	N/A
Auto parts	612.24	-2,745.38	N/A
loss
Total	-4,230.30	-3,154.26	N/A
	Coal mining machinery	51,750.15	63,490.30	-18.49
	Auto parts	11,060.26	-18,783.80	N/A
Net profit
Acquisition-related	-2,345.47	-2,463.27	N/A
	centralized expenses
	Total	60,464.94	42,243.23	43.14
Net profit	Coal mining machinery	50,295.00	62,967.52	-20.13
Auto parts	7,681.57	-20,312.79	N/A
attributable to
Acquisition-related
owners of the	-2,345.47	-2,463.27	N/A
centralized expenses
parent company
Total	55,631.10	40,191.46	38.42

Explanations for the changes:

1. Operating revenue: Total operating revenue amounted to RMB7,680,408,900 for the reporting period, representing an increase of RMB1,737,834,300 or 29.24% from the same period of last year. This was primarily because 1) the total operating revenue from the coal mining machinery segment amounted to RMB3,005,292,900 during the reporting period, representing an increase of RMB565,996,400 or 23.20% from the same period of last year due to a positive development momentum for the coal industry, higher concentration of coal mines, and increasing demand for intelligent comprehensive mining equipment and systems from coal mine customers driven by national policies; 2) the total revenue from the auto parts segment amounted to RMB4,675,116,000 for the reporting period, representing an increase of RMB1,171,837,900 or 33.45% from the same period of last year. The ASIMCO business recorded an overall revenue of RMB1,254,979,800, representing an increase of 51.78% from the same period of last year and SEG recorded total operating revenue of

RMB3,420,150,300, representing an increase of 27.79% from the same period of last year mainly due to

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First Quarterly Report of 2021

the gradual recovery of the auto market with the alleviation of the impact of the pandemic. In particular, the production and sales of domestic commercial vehicles hit record highs, the Company's auto parts segment increased and the base number was lower as affected by the pandemic in the same period last year.

1. Administration expenses: Administration expenses amounted to RMB317,614,200 for the current period, representing an increase of RMB81,337,300 or 34.42% from the same period of last year, mainly because 1) the administration expenses from the coal mining machinery segment amounted to RMB129,132,100 during the reporting period, representing an increase of 107.09% from the same period of last year. This was mainly attributable to the lower base number affected by the pandemic in the same period last year and provisions made for the mid to long-term incentive payments by the Company; 2) the administration expenses from the auto parts segment amounted to RMB188,482,100, representing an increase of 8.37% from the same period of last year.
2. Finance costs: Finance costs amounted to RMB64,614,900 for the reporting period, representing an increase of 45.40% from the same period of last year. This was mainly attributable to the fact that the finance costs of the coal mining machinery segment amounted to RMB10,183,900 during the reporting period, representing an increase of RMB17,236,500 from the same period of last year primarily due to the increase in interest expenses on bank borrowings.
3. Credit impairment loss: The profit affected by provision for bad debts decreased by RMB42,303,000 for the reporting period, which represented an increase of RMB10,760,400 in provision for bad debts from the same period of last year. This was primarily attributable to the fact that 1) the profit affected by provision for bad debts of the coal mining machinery segment decreased by RMB48,425,400 during the reporting period, representing an increase of RMB44,336,600 in provision for bad debts for the same period of last year mainly due to the increase in accounts receivable; and 2) the profit affected by provision for write-back in bad debts of the auto parts segment increased by RMB6,122,400 for the reporting period, compared with an increase of RMB33,576,200 in provision for write-back in bad debts for the same period of last year.
4. Net profit: Consolidated net profit amounted to RMB604,649,400 for the reporting period, representing an increase of RMB182,217,100 or 43.14% from the same period of last year. This was mainly attributable to the fact that 1) the net profit of the coal mining machinery segment amounted to RMB517,501,500 during the reporting period, representing a decrease of RMB117,401,500 or 18.49% from the same period of last year, principally because of an increase in the purchase price of raw materials such as steel, which led to the decrease in gross profit margin and the increase in expenses during the period compared with the same period last year; 2) the net profit of the auto parts segment amounted to RMB110,602,600 for the reporting period, representing an increase of RMB298,440,600 compared with the same period of last year. In particular, the ASIMCO business has risen to a new record high in the production and sales of domestic commercial vehicles with continued growth in revenue, and a net profit of RMB150,021,900 was recorded, representing an increase of 118.08% from the same period of last year. Owing to the implementation of various measures on cost reduction and

efficiency improvement as well as the increasing operating income, SEG recorded a net loss of

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First Quarterly Report of 2021

RMB20,422,700, representing a decrease of RMB217,565,600 compared with the net loss for the same period of last year.

1. Net profit attributable to owners of the parent company: Net profit attributable to owners of the parent company amounted to RMB556,311,000 for the reporting period, representing an increase of RMB154,396,400 or 38.42% from the same period of last year, mainly due to the increase in net profit of the auto parts segment.
   3.2 Analysis and explanation of the progress and impact of significant events and the solutions thereto

√ Applicable □ Not applicable

1．Henan Machinery Investment Group Co., Ltd. (河南機械裝備投資集團有限責任公司, the former controlling shareholder of the Company) (the "Henan Machinery Group") agreed to transfer its 277,195,419 A shares of the Company through public solicitation of transferees, representing 16.00% of the total share capital of the Company, and signed the Share Transfer Agreement Regarding Zhengzhou Coal Mining Machinery Group Company Limited on 8 January 2021 with the transferee Hong Yi Investment Management (Henan) Partnership(Limited Partnership) (泓羿投資管理（河南）合夥企業（有 限合夥）) ("Hong Yi Investment") as determined by the public solicitation process. On 25 February 2021, the transfer and registration procedures for the shares transferred under such agreement have been completed.

Before the share transfer, Henan Machinery Group held 521,087,800 shares of the Company, representing 30.08% of the total share capital of the Company, and was the controlling shareholder of the Company while the de facto controller of the Company was the Henan SASAC. After the completion of the share transfer, Henan Machinery Group holds 243,892,381 shares of the Company, representing 14.08% of the total share capital of the Company; Hong Yi Investment holds 277,195,419 shares of the Company, representing for 16% of the total share capital of the Company. Meanwhile, Henan Assets Management Co., Ltd. (河南資産管理有限公司) ("Henan Asset"), being one of the parties acting in concert, holds 69,209,157 shares of the Company, representing for 3.99% of the total share capital of the Company. Hong Yi Investment and Henan Asset hold 19.99% of shares of the Company in aggregate. According to the Acting-in-Concert Agreement entered into by Hong Yi Investment and Henan Asset and the governance structure of Hong Yi Investment, after the completion of the share transfer, Hong Yi Investment and Henan Asset will become the controlling shareholders of the listed company, and the listed company will not have a de facto controller.

2. The Company held the 3rd meeting of the 5th Board of Directors and the 2nd meeting of the 5th board of supervisors on 17 April 2021 to review and approve the relevant resolutions such as the Resolution on 2021 Restricted Share Incentive Scheme (Draft) of Zhengzhou Coal Mining Machinery Group Company Limited and its Summary. In order to further improve the Company's governance

structure, enhance the incentive mechanism, strengthen the sense of responsibility and mission of the Company's management to achieve sustainable and healthy development, and ensure the realization of development goals of the Company, the Company proposed to implement a restricted share incentive

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First Quarterly Report of 2021

scheme for 2021, pursusant to which 42.3 million restricted shares will be granted to 186 people including certain Directors, senior management, core management and core personnel of the Company

(including core personnel such as R&D, sales, and management) (the "Equity Incentive Scheme"). For further details, please refer to the Restricted Share Incentive Scheme (Draft) of Zhengzhou Coal Mining

Machinery Group Company Limited and other relevant announcements disclosed by the Company on the website of the Shanghai Stock Exchange on 19 April 2021. Matters related to the Equity Incentive

Scheme are subject to the consideration at the general meeting of the Company.

1. Overdue and outstanding undertakings during the reporting period □ Applicable √ Not applicable
2. Warning of and explanation for the forecast of any possible loss in the accumulated net profit from

the beginning of the year to the end of the next reporting period or any material changes compared to that of the corresponding period of last year

• Applicable √ Not Applicable

Name of company	Zhengzhou Coal Mining Machinery
Group Company Limited
Legal representative	Jiao Chengyao
Date	26 April 2021

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First Quarterly Report of 2021

4.	Appendices
4.1	Financial Statements
	Consolidated Balance Sheet
		31 March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
		Unit: Yuan Currency: RMB	Audit Type: Unaudited
	Item		31 March 2021	31 December 2020
Current assets:
Monetary capital		3,486,779,933.52	3,847,520,419.16
Balances with clearing companies
Placements with banks and other financial
institutions
Financial assets held for trading		3,817,330,628.10	2,954,413,974.24
Derivative financial assets
Bills receivable		2,552,026,882.13	2,093,400,304.79
Accounts receivable		6,551,455,837.70	5,765,895,198.67
Receivables financing		1,315,495,396.62	1,686,664,298.20
Prepayments		654,335,697.42	498,894,837.72
Premiums receivable
Accounts receivable from reinsurance
Contract reserves receivable from reinsurance
Other receivables		263,272,798.60	224,221,698.56
Including: Interest receivable		4,827,392.57	22,581,700.19
	Dividend receivable
Buying back financial assets resold
Inventories		4,684,994,686.96	4,532,456,338.28
Contract assets			8,803,747.77
Assets held for sale		1,844,619.09	1,921,777.57
Non-current assets due within one year		202,738,157.88	285,728,394.82
Other current assets		690,403,647.18	602,304,156.83
	Total current assets		24,220,678,285.20	22,502,225,146.61
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables		134,711,645.09	135,363,893.46
Long-term equity investment		284,424,990.58	378,801,103.58
Other investments in equity instruments		139,194,016.86	142,288,900.88
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First Quarterly Report of 2021

Other non-current financial assets		1,189,462,111.12	1,189,462,111.12
Investment properties		385,273,957.17	387,226,050.99
Fixed assets		3,807,101,368.07	3,916,423,297.92
Construction in progress		619,982,603.03	569,701,738.62
Biological assets for production
Fuel assets
Right-of-use assets		1,310,365,304.76	784,791,206.23
Intangible assets		1,392,183,339.68	1,479,568,631.84
Development expenses		523,950,994.21	519,810,486.35
Goodwill		495,091,083.96	520,431,098.93
Long-term deferred expenditures		75,971,522.27	77,827,153.50
Deferred income tax assets		418,225,828.96	455,322,764.95
Other non-current assets		599,084,603.36	655,171,714.96
Total non-current assets		11,375,023,369.12	11,212,190,153.33
Total assets		35,595,701,654.32	33,714,415,299.94
Current liabilities:
Short-term borrowings		210,235,582.91	179,156,107.40
Borrowings from central bank
Placements from other banks
Financial liabilities held for trading		34,260,025.87	7,566,568.02
Derivative financial liabilities		3,988,402.77	6,163,106.99
Bills payable		1,829,094,779.88	1,593,690,209.24
Accounts payable		4,921,415,211.42	5,071,579,158.15
Receipts in advance		75,788,539.72	66,246,065.02
Contract liabilities		1,487,751,807.36	1,576,809,901.35
Disposal of repurchased financial assets
Deposit taking and deposits from peer companies
Customer deposits for trading securities
Customer deposits for undertaking securities
Staff remuneration payable		1,117,459,684.93	1,233,835,302.17
Tax payable		539,679,098.76	479,435,728.59
Other payables		695,903,126.11	763,268,744.11
Including: Interest payable		14,946,865.91	23,112,708.45
Dividend payable
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year		2,056,773,205.85	2,323,262,675.15
Other current liabilities		251,742,442.19	343,151,589.34
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First Quarterly Report of 2021

Total current liabilities		13,224,091,907.77	13,644,165,155.53
Non-current liabilities:
Insurance contract reserves
Long-term borrowings		4,758,839,044.90	3,626,000,180.41
Debentures payable
Including: Preference shares
Perpetual bonds
Lease liabilities		1,201,712,099.01	688,513,208.21
Long-term payables		26,407,867.69	26,412,507.69
Long-term staff remuneration payable		764,740,949.14	697,997,773.04
Estimated liabilities		654,627,772.85	572,156,532.20
Deferred income		116,921,377.35	120,197,815.73
Deferred income tax liabilities		274,482,900.64	289,358,171.73
Other non-current liabilities		16,613,186.67	15,783,348.75
Total non-current liabilities		7,814,345,198.25	6,036,419,537.76
Total liabilities		21,038,437,106.02	19,680,584,693.29
Owners' equity (or shareholders' equity)
Paid-up capital (or share capital)		1,732,471,370.00	1,732,471,370.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve		4,217,454,072.81	4,314,637,881.50
Less: Treasury stock
Other comprehensive income		-167,484,111.73	-183,452,509.23
Special reserves
Surplus reserve		1,023,519,511.31	1,023,519,511.31
Provision for general risks
Undistributed profit		6,732,929,623.01	6,176,618,647.79
Total equity attributable to owners of the parent		13,538,890,465.40	13,063,794,901.37
company (or shareholders' equity)
Minority interests		1,018,374,082.90	970,035,705.28
Total owners' equity (or shareholders' equity)		14,557,264,548.30	14,033,830,606.65
Total liabilities and owners' equity (or		35,595,701,654.32	33,714,415,299.94
shareholders' equity)
Person-in-charge of the Company: Jiao Chengyao	Person-in-charge of accounting matters: Huang Hua
Head of accounting department: Wang Jingbo

15 / 25

First Quarterly Report of 2021

Balance Sheet of the Parent Company
	31 March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
	Unit: Yuan Currency: RMB	Audit Type: Unaudited
Item		31 March 2021	31 December 2020
Current assets:
Monetary capital		2,048,417,303.07	2,212,031,057.20
Financial assets held for trading		3,423,365,781.24	2,564,342,548.36
Derivative financial assets
Bills receivable		2,552,026,882.13	2,103,550,304.79
Accounts receivable		2,340,160,383.40	2,289,756,440.85
Receivables financing
Prepayments		965,821,767.55	205,798,767.21
Other receivables		148,957,475.11	75,358,448.68
Including: Interest receivable		5,237,660.00	21,130,068.37
Dividend receivable
Inventories		2,054,635,690.33	1,965,936,210.66
Contract assets
Assets held for sale
Non-current assets due within one year		200,812,257.30	274,738,911.58
Other current assets		484,719,115.40	296,324,374.08
Total current assets		14,218,916,655.53	11,987,837,063.41
Non-current assets:
Debt investment
Other debt investment
Long-term receivables		182,305,955.38	199,615,235.30
Long-term equity investment		6,036,993,541.60	6,135,580,891.91
Other investments in equity instruments		112,255,000.00	112,255,000.00
Other non-current financial assets		1,189,462,111.12	1,189,462,111.12
Investment properties		230,022,868.24	232,639,806.55
Fixed assets		648,166,487.87	683,389,781.95
Construction in progress		150,985,291.81	148,339,977.01
Biological assets for production
Fuel assets
Right-of-use assets		33,420,448.99	34,479,814.15
Intangible assets		204,409,614.51	206,037,973.62
Development expenses
Goodwill
Long-term deferred expenditures
Deferred income tax assets		185,193,365.65	183,275,222.14
Other non-current assets		538,309,954.47	538,413,954.47
Total non-current assets		9,511,524,639.64	9,663,489,768.22
Total assets		23,730,441,295.17	21,651,326,831.63
	16 / 25

First Quarterly Report of 2021

Current liabilities:
Short-term borrowings			10,800,000.00
Financial liabilities held for trading
Derivative financial liabilities
Bills payable		1,731,351,421.46	1,245,702,630.26
Accounts payable		948,624,849.05	1,097,607,237.38
Receipts in advance		70,221,081.64	64,913,556.50
Contract liabilities		1,228,085,166.69	1,294,878,240.41
Staff remuneration payable		62,421,722.63	86,143,041.98
Tax payable		226,533,939.50	254,607,340.98
Other payables		110,304,060.77	109,547,735.43
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year		325,719,576.34	626,786,909.67
Other current liabilities		1,411,665,890.12	670,507,783.01
Total current liabilities		6,114,927,708.20	5,461,494,475.62
Non-current liabilities：
Long-term borrowings		2,461,250,091.40	1,415,358,322.29
Debentures payable
Including: Preference shares
Perpetual bonds
Lease liabilities		30,756,721.16	30,341,401.70
Long-term payables		26,407,867.69	26,412,507.69
Long-term staff remuneration payable		382,736,230.30	317,736,230.30
Estimated liabilities
Deferred income		74,530,500.00	76,982,700.00
Deferred income tax liabilities		15,880,390.66	16,210,181.32
Other non-current liabilities
Total non-current liabilities		2,991,561,801.21	1,883,041,343.30
Total liabilities		9,106,489,509.41	7,344,535,818.92
Owners' equity (or shareholders' equity)
Paid-up capital (or share capital)		1,732,471,370.00	1,732,471,370.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve		4,227,407,506.65	4,324,591,315.34
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve		1,023,519,511.31	1,023,519,511.31
Undistributed profit		7,640,553,397.80	7,226,208,816.06
Total owners' equity (or shareholders' equity)		14,623,951,785.76	14,306,791,012.71
Total liabilities and owners' equity (or		23,730,441,295.17	21,651,326,831.63
shareholders' equity)
Person-in-charge of the Company: Jiao Chengyao	Person-in-charge of accounting matters: Huang Hua
Head of accounting department: Wang Jingbo

17 / 25

First Quarterly Report of 2021

Consolidated Statement of Income
January to March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
Unit: Yuan	Currency: RMB Audit Type: Unaudited
Item		Q1 2021	Q1 2020
1. Total operating revenue		7,680,408,923.24	5,942,574,553.80
Including: Operating revenue		7,676,725,085.99	5,941,232,246.25
Interest income		3,683,837.25	1,342,307.55
Premium earned
Handling charges and commission income
2. Total operating costs		6,896,761,566.84	5,271,587,523.79
Including: Operating costs		5,861,088,503.61	4,493,691,583.36
Interest expenses		251,729.34
Handling charges and commission expenses
Surrenders
Net expenditure for compensation payments
Net withdrawal of insurance liabilities reserve
Expenditures for policy dividend
Reinsurance expenditures
Tax and surcharges		37,110,873.72	23,194,637.64
Selling expenses		290,751,429.54	209,524,674.98
Administration expenses		317,614,177.65	236,276,881.11
Research and development expenses		325,329,944.16	264,458,806.15
Finance costs		64,614,908.82	44,440,940.55
Including: Interest expenses		83,401,915.47	56,919,791.90
Interest income		16,764,034.17	15,929,454.50
Add: Other gains		67,280,579.73	29,732,359.44
Gain from investments (loss is represented by		56,762,522.50	-56,493,864.34
"－")
Including: Gain from investments in associates		23,085,491.65	3,174,657.12
and joint ventures
Derecognition gains on financial
assets measured at amortized cost
Gain from foreign exchange (loss is represented
by "－")
Net gains from hedging exposure (loss is
represented by "－")
Gain from changes in fair value (loss is		-23,801,436.16	-20,544,995.17
represented by "－")
Credit impairment losses (loss is represented by		-42,302,999.48	-31,542,559.87
"－")
Asset impairment losses (loss is represented by		-13,002,058.48	-27,574,376.60
"－")
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First Quarterly Report of 2021

Gains from disposal of assets (loss is represented	2,728,267.77	280,026.30
by "－")
3. Profit from operations (loss is represented by "－")	831,312,232.28	564,843,619.77
Add: Non-operating income	3,435,931.88	5,340,844.20
Less: Non-operating expenses	733,647.96	3,364,189.62
4. Total profit (loss is represented by "－")	834,014,516.20	566,820,274.35
Less: Income tax expense	229,365,163.36	144,387,958.62
5. Net profit (net loss is represented by "－")	604,649,352.84	422,432,315.73
(1) Breakdown by continuity of operation
1. Net profit from continuing operation (net loss is	604,649,352.84	422,432,315.73
represented by "－")
2. Net profit from discontinued operation (net loss is
represented by "－")
(2) Breakdown by ownership
1. Net profit attributable to shareholders of the parent	556,310,975.22	401,914,619.43
company (net loss is represented by "－")
2. Gain or loss attributable to minority interests (net	48,338,377.62	20,517,696.30
loss is represented by "－")
6. Net other comprehensive income after tax	15,968,397.50	-114,096,534.83
(1) Net other comprehensive income attributable to owners	15,968,397.50	-114,096,534.83
of the parent company after tax
1. Other comprehensive income not to be reclassified	-3,156,321.11
into profit or loss
(1) Changes arising from re-measuring defined	-61,437.09
benefit scheme
(2) Other comprehensive income not to be
classified into profit or loss using the equity
method
(3) Changes in fair value of other investments in	-3,094,884.02
equity instruments
(4) Changes in fair value of the company's own
credit risk
2. Other comprehensive income to be reclassified into	19,124,718.61	-114,096,534.83
profit or loss
(1) Other comprehensive income to be reclassified
into profit or loss using the equity method
(2) Changes in fair value of other debt investment
(3) Amount of financial assets reclassified into
other comprehensive income
(4) Other debt investment credit impairment
provision
(5) Cash flow hedge reserve (effective portion of	-1,205,752.37	-49,309,853.53
gains and losses from cash flow hedging)
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First Quarterly Report of 2021

	(6) Exchange differences on foreign currency	20,330,470.98	-64,786,681.30
	financial statements
	(7) Others
(2)	Net other comprehensive income attributable to
	minority interests after tax
7. Total comprehensive income	620,617,750.34	308,335,780.90
(1)	Total comprehensive income attributable to owners of	572,279,372.72	287,818,084.60
	the parent company
(2)	Total comprehensive income attributable to minority	48,338,377.62	20,517,696.30
	interests
8. Earnings per share:
(1)	Basic earnings per share (RMB per share)	0.321	0.232
(2)	Diluted earnings per share (RMB per share)	0.320	0.230

Person-in-charge of the Company: Jiao Chengyao Person-in-charge of accounting matters: Huang Hua

Head of accounting department: Wang Jingbo

Statement of Income of the Parent Company
January to March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
Unit: Yuan	Currency: RMB Audit Type: Unaudited
Item		Q1 2021	Q1 2020
1. Operating revenue		2,103,249,486.30	1,664,426,096.12
Less: Operating cost		1,388,690,995.58	954,802,373.74
Tax and surcharges		19,515,549.73	10,563,123.03
Selling expenses		56,291,138.62	31,615,090.18
Administration expenses		101,346,095.97	40,918,955.78
Research and development expenses		84,553,302.44	66,562,625.79
Finance costs		4,894,659.11	-6,871,277.96
Including: Interest expenses		20,673,659.75	10,710,067.46
Interest income		12,062,425.15	11,721,320.54
Add: Other gains		33,674,749.18	15,729,848.25
Gain from investments (loss is represented by "－")		51,706,275.41	15,494,549.74
Including: Gain from investments in associates and		23,091,132.05	3,393,549.28
joint ventures
Derecognition gains on financial assets
measured at amortized cost
Net gains from hedging exposure (loss is
represented by "－")
Gain from changes in fair value (loss is represented		-976,767.12
by "－")
Credit impairment losses (loss is represented by		-40,875,989.27	19,653,279.16
"－")
Asset impairment losses(loss is represented by "－")
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First Quarterly Report of 2021

Gain from disposal of assets (loss is represented by	63,869.13	543,543.36
"－")
2. Profit from operations (loss is represented by "－")	491,549,882.18	618,256,426.07
Add: Non-operating income	311,907.09	2,319,154.90
Less: Non-operating expenses	117,180.54	2,815,317.38
3. Total profit (loss is represented by "－")	491,744,608.73	617,760,263.59
Less: Income tax expense	77,400,026.99	88,529,301.46
4. Net profit (net loss is represented by "－")	414,344,581.74	529,230,962.13
(1) Net profit from continuing operation (net loss is	414,344,581.74	529,230,962.13
represented by "－")
(2) Net profit from discontinued operation (net loss is
represented by "－")
5. Net other comprehensive income after tax
(1) Other comprehensive income that cannot be
reclassified into profit or loss
1.	Changes arising from re-measuring defined benefit
	scheme
2.	Other comprehensive income that cannot be
	reclassified into profit or loss under the equity
	method
3.	Changes in fair value of other investments in equity
	instruments
4.	Changes in fair value of the company's own credit
	risks
(2) Other comprehensive income to be reclassified into
profit or loss
1.	Other comprehensive income that can be
	reclassified into profit or loss under the equity
	method
2.	Changes in fair value of other debt investment
3.	Amount of financial assets reclassified into other
	comprehensive income
4.	Other debt investment credit impairment provision
5.	Cash flow hedge reserve (effective portion of gains
	and losses from cashflow hedging)
6.	Exchange differences on foreign currency financial
	statements
7.	Others
6. Total comprehensive income	414,344,581.74	529,230,962.13
7. Earnings per share:
(1) Basic earnings per share (RMB per share)
(2) Diluted earnings per share (RMB per share)

Person-in-charge of the Company: Jiao Chengyao Person-in-charge of accounting matters: Huang Hua

Head of accounting department: Wang Jingbo

21 / 25

First Quarterly Report of 2021

Consolidated Statement of Cash Flows
January to March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
Unit: Yuan	Currency: RMB	Audit Type: Unaudited
Item	Q1 2021		Q1 2020
1. Cash flows from operating activities:
Cash received from sales of goods and provision of	6,148,872,060.09		5,487,301,836.58
labour
Net increase in deposits from customers and peer
companies
Net increase in borrowings from central bank
Net increase in placements from other financial
institutions
Cash received from premiums under original insurance
contracts
Net cash received from reinsurance business
Net increase in deposits from policyholders and
investment funds
Cash received from interest, handling charges and
commission
Net increase in placements
Net increase in capital from repurchase business
Net cash received from trading securities
Tax refunds received	421,342,791.70		400,313,230.80
Cash received in relation to other operating activities	239,243,873.86		118,562,550.89
Sub-total of cash inflows from operating activities	6,809,458,725.65		6,006,177,618.27
Cash paid for goods purchased and labour received	4,807,005,657.79		4,354,949,679.30
Net increase in loans and advances to customers	-7,046,660.75
Net increase in deposits with central bank and peer
companies
Cash paid for compensation payments under original
insurance contracts
Net increase in placements with banks and other
financial institutions
Cash paid for interest, handling charges and commission
Cash paid for policyholder dividend
Cash paid to and paid on behalf of the employees	852,212,911.12		790,407,207.81
Various taxes paid	808,150,952.13		718,158,387.18
Cash paid in relation to other operating activities	136,848,033.94		162,233,432.71
Sub-total of cash outflow from operating activities	6,597,170,894.23		6,025,748,707.00
Net cash flows from operating activities	212,287,831.42		-19,571,088.73
2. Cash flows from investing activities:
Cash received from recovery of investments	1,460,042,470.55		801,822,265.44
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First Quarterly Report of 2021

Cash received from gain of investment acquired	28,758,542.08	10,852,008.71
Net cash received from disposal of fixed assets,	579,960.00	249,245.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
other business units
Other cash received in relation to investing activities	50,000.00	18,138,483.58
Sub-total of cash inflow from investing activities	1,489,430,972.63	831,062,002.73
Cash paid for purchase and construction of fixed assets,	211,149,662.77	160,938,406.74
intangible assets and other long-term assets
Cash paid for investments	2,386,000,000.00	1,451,538,745.16
Net increase in pledged loans
Net cash paid for acquiring subsidiaries and other
business units
Other cash paid in relation to investing activities	30,932,452.36	16,322,865.87
Sub-total of cash outflow from investing activities	2,628,082,115.13	1,628,800,017.77
Net cash flows from investing activities	-1,138,651,142.50	-797,738,015.04
3. Cash flows from financing activities:
Cash received from investment
Including: Cash received by subsidiaries from minority
shareholder's investment
Cash received from borrowings acquired	1,279,982,170.59	202,390,898.44
Other cash received in relation to financing activities	311,976,837.30	68,385,872.37
Sub-total of cash inflow from financing activities	1,591,959,007.89	270,776,770.81
Cash paid for repayment of indebtedness	383,836,769.76	321,526,409.79
Cash paid for distribution of dividend and profit or for	54,515,853.24	28,708,596.42
interest
Including: Dividend and profit paid to minority
shareholders by subsidiaries
Other cash paid in relation to financing activities	277,366,725.43	89,180,846.09
Sub-total of cash outflow from financing activities	715,719,348.43	439,415,852.30
Net cash flows from financing activities	876,239,659.46	-168,639,081.49
4. Effects of change of exchange rate on cash and cash	-36,491,090.74	-22,749,517.09
equivalents
5. Net increase in cash and cash equivalents	-86,614,742.36	-1,008,697,702.35
Add: Balance of cash and cash equivalents at the	2,827,359,059.44	3,844,561,911.41
beginning of the period
6. Balance of cash and cash equivalents at the end of	2,740,744,317.08	2,835,864,209.06
the period

Person-in-charge of the Company: Jiao Chengyao Person-in-charge of accounting matters: Huang Hua

Head of accounting department: Wang Jingbo

23 / 25

First Quarterly Report of 2021

Statement of Cash flow of the Parent Company
January to March 2021
Prepared by: Zhengzhou Coal Mining Machinery Group Company Limited
Unit: Yuan	Currency: RMB	Audit Type: Unaudited
Item	Q1 2021		Q1 2020
1. Net cash flows from operating activities:
Cash received from sales of goods and provision of	1,421,356,168.30		1,419,376,241.95
labour
Tax refunds received
Other cash received in relation to operating activities	787,722,261.06		449,760,008.41
Sub-total of cash inflows from operating activities	2,209,078,429.36		1,869,136,250.36
Cash paid for goods purchased and labour received	1,677,398,789.56		1,270,507,073.67
Cash paid to and paid on behalf of the employees	125,753,832.69		103,359,860.27
Various taxes paid	242,274,962.50		143,856,158.09
Other cash paid in relation to operating activities	53,796,490.43		42,978,810.75
Sub-total of cash outflow from operating activities	2,099,224,075.18		1,560,701,902.78
Net cash flows from operating activities	109,854,354.18		308,434,347.58
2. Cash flows from investing activities:
Cash received from recovery of investments	1,146,051,330.00		610,000,000.00
Cash received from gain of investment acquired	26,167,918.19		12,247,525.62
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
other business units
Other cash received in relation to investing activities
Sub-total of cash inflow from investing activities	1,172,219,248.19		622,247,525.62
Cash paid for purchase and construction of fixed assets,	13,262,274.03		11,202,166.07
intangible assets and other long-term assets
Cash paid for investments	2,070,000,000.00		1,250,000,000.00
Net cash paid for acquiring subsidiaries and other
business units
Other cash paid in relation to investing activities
Sub-total of cash outflow from investing activities	2,083,262,274.03		1,261,202,166.07
Net cash flows from investing activities	-911,043,025.84		-638,954,640.45
3. Cash flows from financing activities:
Cash received from investment
Cash received from borrowings acquired	1,050,000,000.00
Other cash received in relation to financing activities	260,650,595.76		33,446,759.62
Sub-total of cash inflow from financing activities	1,310,650,595.76		33,446,759.62
Cash paid for repayment of indebtedness	301,583,333.33		300,000,000.00
Cash paid for distribution of dividend and profit or for	16,827,523.24		10,193,627.31
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First Quarterly Report of 2021

	interest
	Other cash paid in relation to financing activities	95,000,000.00
	Sub-total of cash outflow from financing activities	413,410,856.57	310,193,627.31
	Net cash flows from financing activities	897,239,739.19	-276,746,867.69
4.	Effect of change of exchange rate on cash and cash	2,270,410.81	4,126,288.91
	equivalents
5.	Net increase in cash and cash equivalents	98,321,478.34	-603,140,871.65
	Add: Balance of cash and cash equivalents at the	1,351,518,682.62	2,335,144,383.51
	beginning of the period
6.	Balance of cash and cash equivalents at the end of	1,449,840,160.96	1,732,003,511.86
	the period

Person-in-charge of the Company: Jiao Chengyao Person-in-charge of accounting matters: Huang Hua

Head of accounting department: Wang Jingbo

4.2 Adjustment of related items in the financial statements at the beginning of the year of such initial implementation arising from initial implementation of new lease standard from the year of 2021

• Applicable √ Not applicable

4.3 Description of retrospective adjustment of the previous comparative data by initial implementation of new lease standard from the year of 2021

• Applicable √ Not applicable

4.4 Audit Report

• Applicable √ Not applicable

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