HARBIN BOSHI AUTOMATION CO., LTD. Interim Report for
The First Quarter 2023
The Company and whole members of the Board of Directors guarantee that the information disclosedis factual, accurate and complete, and there is no false record, misleading statement or materialomission.
Important content reminder:
1.The Board of Directors, the Board of Supervisors as well as all the directors, supervisors and senior
managers of HARBIN BOSHI AUTOMATION CO., LTD. ( hereinafter referred to as “the Company”)warrant the factuality, accuracy and completeness of this Report and there is no false record,misleading statement or material omission. And they will be severally and jointly liable for this Report.
2.The person in charge of the Company, the person in charge of accounting work of the Company, and
the person in charge of accounting department of the Company warrant that the financial informationin this Report is factual, accurate and complete.
3. Whether this First Interim Report has been audited by auditing firm or not?
□Yes √No
I. Main financial data
1. Main accounting data and financial indicators
Indicate by check mark if there is any retrospectively restated accounting data of previous years.
□Yes √No
Jan 1 to Mar 31, 2023Jan 1 to Mar 31, 2022
Increase/Decrease over thesame period of previous yearOperating Revenue (RMB)729,710,396.08504,286,748.22 44.70%Net profit attributable to parent company’sshareholders (RMB)
210,214,585.50153,163,366.86 37.25%Net profit after deducting non-recurringprofit or loss attributable to shareholders of theparent company (RMB)
198,069,179.12146,195,048.97 35.48%Net cash flow from operating activities (RMB)-53,800,397.0155,942,302.81 -196.17%Basic earnings per share (RMB/share)
0.20560.1498 37.25%Diluted earnings per share (RMB/share)
0.20250.1498 35.18%Weighted average return on equity
6.42%5.16% 1.26%Mar 31, 2023 Dec 31, 2022
Increase/decrease of Mar 31,2023 over Dec 31, 2022Total assets (RMB)6,268,223,837.676,220,273,855.91 0.77%Total equity attributable to shareholders of theparent company (RMB)
3,382,277,207.733,169,585,012.94 6.71%
2. Non-recurring gains and losses
√ Applicable □Not applicable
Unit: RMB
Item Jan 1 to Mar 31, 2023 NoteProfit or loss from disposal of non-current assets (including the write-off of accruedfor impairment of assets)
-16,327.02Governmental subsidy reckoned into current gains or losses (excluding the subsidyenjoyed in quota or ration according to the unified national standards, which areclosely relevant to enterprise’s business)
6,243,567.69
Except for effectively hedging business related to normal business operations of theCompany, profit or loss arising from the changes in the fair value of financial assets
7,974,723.16
Income from cashmanagement
held for trading, financial liabilities held for trading, as well as investment incomefrom the disposal of financial assets held for trading, financial liabilities held fortrading, and investments in other debt obligationsOther non-operating income and expenses other than the above -374,084.57Other gain/loss items that qualified the definition of non-recurring profit(gains)/losses
441,985.54Less: Impact on income tax1,930,879.56
Impact on minority shareholders’ equity (after tax)193,578.86
Total12,145,406.38--
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
√Applicable□ Not applicable
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses: Income fromtreasury reverse repos (cash management).
Explanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined asrecurring gain/loss.
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 onInformation Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss”defined as recurring gain/loss.
3. Particulars about changes in items of main accounting data and financial index and explanations of
reasons.
√ Applicable □Not applicable
Consolidated Balance Sheet items
Mar 31,2023 Dec 31,2022
Change Reasons for the changes(RMB) (RMB)Cash and cash equivalent 226,605,940.55659,606,109.17-65.65%
Due to cash management activities, led to thedecrease in ending balance of bank deposits.Financing receivable 177,171,988.16111,064,333.2759.52%
Due to the increase in the amount of bankacceptance bills with higher credit rating.Advance payment 206,578,966.50139,594,005.2547.99%Due to the increase in operational prepayments.Other current assets 408,630,927.828,781,928.474553.09%Mainly due to cash management activities.
Investment real estate 12,296,268.766,373,135.4292.94%Due to the increase in real estate lease.Other non-current assets 28,284,690.2620,759,073.6536.25%
Due to the increase in long-term productwarrantycompared with which of the beginning balance.Short-term loans 11,130,000.0031,830,000.00-65.03%
Due to the subsidiary pay back matured bankloan.Employee benefits payable 21,051,885.7970,475,565.86-70.13%
The year-end bonus of 2022 accrued at the end ofthe previous period, which was paid in Jan, 2023,and the balance decreased.Other payables 17,770,244.013,035,031.46485.50%
Mainly due to increase in payable caused bydecrease of capital of the subsidiary during thisperiod.Other non-current liabilities 340,817,029.20199,568,192.5670.78%
Due to increase in prepayments from customersover one year.Consolidated Income Statement items fromthe beginning of the year to the end of the
reporting period
Jan 1 to Mar 31,2023Jan 1 to Mar 31, 2022
Change Reasons for the changes(RMB) (RMB)Operating revenue 729,710,396.08504,286,748.2244.70%
Due to the revenue of intelligent manufacturingequipment and industrial service both increasedcomprehensively compared with which of thesame period of last year.Cost of sales 438,999,834.77304,956,236.6743.96%
The increase in cost of sales caused by theincrease in the operating revenue.Taxes and surcharges 3,824,169.655,493,462.60-30.39%
The decrease of value-added tax led to surchargesdecrease compared with which of the same periodof last year.Selling expenses 27,408,242.7818,514,567.3148.04%
The increase in sales led to the increase in sellingexpenses.General and administrative expenses 19,973,449.7028,743,732.58-30.51%
Compared with the same period of last year, oneof secondary subsidiary was no longerconsolidated, which led general andadministrative expenses decrease.Research and development expenses 38,345,817.2616,829,101.44127.85%
Due to increase in research and developmentinputs.Credit impairment losses (loss is statedwith “-”)
-5,699,807.4311,240,084.91150.71%
Due to the increase in the provision for bad debtsaccrued.Asset impairment losses (loss is stated with“-”)
-573,795.00-5,674,134.02-89.89%
Due to the decrease of the provision forinventories accrued compared with which of thesame period of last year.Other income 39,246,555.7812,886,757.68204.55%
The value-added tax refund received from sales ofproduct with software increased compared with
which of the same period of last year.Investment income (loss is stated with “-”) 14,813,438.6425,896,672.03-42.80%
The investment income accrued in associates
decreased compared with which of the same
period of last year.Thereof: Income from investment inassociates and joint ventures
8,194,553.9021,352,331.05-61.62%
The investment income accrued in associates
decreased compared with which of the same
period of last year.Income tax expenses 31,903,311.4222,598,201.8041.18%
The increase in income tax expenses which
caused by increases in revenue and profit.Consolidated Cash Flow Statement itemsfrom the beginning of the year to the end of
the reporting period
Jan 1 to Mar 31,2023Jan 1 to Mar 31, 2022
Change Reasons for the changes(RMB) (RMB)Net cash flows from operating activities -53,800,397.0155,942,302.81-196.17%
Due to increase in operational cash payments ofproduction organization etc., caused by increasesin orders.Net cash flows from investing activities -352,046,143.8949,076,700.07-817.34%
Mainly due to the impact of cash managementactivities.Net cash flows from financing activities -26,673,490.85-10,871,914.95-145.34%
Mainly due to the subsidiary decreased capitalduring this period.
II. Shareholders Information
1. Total number of common shareholders and preference shareholders with voting rights recovered
and top ten common shareholders
Unit: ShareTotal number of shareholders of commonstocks at the end of the reporting period
19,314Total preference shareholders withvoting rights recovered at end ofreporting period
Top 10 shareholdersName Nature OwnershipAmount of shares held
Amount ofrestrictedshares held
Pledged, marked orfrozen stocksStatusAmountUnicom Kaixing Equity InvestmentManagement (Zhuhai Hengqin) Limited -Lianchuang Weilai (Wuhan) IntelligentManufacturing Industrial InvestmentPartnership (Limited Partnership)
Others
15.11%154,556,500.00
Deng Xijun Domestic natural person
9.41%96,181,562.00 72,136,172.00
Zhang Yuchun Domestic natural person
8.09%82,696,357.00 62,022,268.00
Wang Chungang Domestic natural person
5.61%57,394,047.00 43,045,535.00
Harbin Institute of Technology AssetManagement Co. Ltd
Domestic state-ownedcorporate
5.00%51,127,500.00
Cai Zhihong Domestic natural person
4.96%50,677,029.00
Cai Hegao Domestic natural person
4.89%50,000,000.00 37,500,000.00
Cheng Fang Domestic natural person
1.43%14,609,308.00
Hong Kong Securities Clearing Company Ltd.(HKSCC)
Foreign legal person
1.42%14,565,589.00
Tan Jianxun Domestic natural person
1.42%14,480,833.00
Top 10 shareholders with unrestricted shares heldName Amount of unrestricted shares held
Type of sharesType AmountUnicom Kaixing Equity InvestmentManagement (Zhuhai Hengqin) Limited -Lianchuang Weilai (Wuhan) IntelligentManufacturing Industrial InvestmentPartnership (Limited Partnership)
154,556,500.00RMB ordinary shares154,556,500.00
Harbin Institute of Technology AssetManagement Co. Ltd
51,127,500.00RMB ordinary shares51,127,500.00Cai Zhihong50,677,029.00RMB ordinary shares50,677,029.00
Deng Xijun24,045,390.00RMB ordinary shares24,045,390.00Zhang Yuchun20,674,089.00RMB ordinary shares20,674,089.00Cheng Fang14,609,308.00RMB ordinary shares14,609,308.00Hong Kong Securities Clearing Company Ltd.(HKSCC)
14,565,589.00RMB ordinary shares14,565,589.00Tan Jianxun14,480,833.00RMB ordinary shares14,480,833.00Wang Chungang14,348,512.00RMB ordinary shares14,348,512.00Cai Hegao12,500,000.00RMB ordinary shares12,500,000.00
Explanation on the above-mentionedshareholders’ affiliated relationship orconcerted action
Deng Xijun, Zhang Yuchun, Wang Chungang, and Cai Hegao keep concerted action through theConcerted Action Agreement and jointly control the Company at the end of the reporting period; CaiZhihong is the son of Cai Hegao, he independently exercised shareholder rights based on his personalwishes, he has not signed concerted action agreement or reached a similar agreement or arrangement withCai Hegao, nor has other concerted action plan, they are not persons acting in concert; Cheng Fang andTan Jianxun are the sponsors of shareholders. Cheng Fang is the sister of Wang Chungang’s wife. Inaddition, the Company is not made aware whether there is any affiliated relationship between theabove-mentioned shareholders or whether they are persons acting in concert as defined in
dministrativeMeasures for the Acquisition of Listed Companies.Explanation on top 10 shareholders that areengaged in margin trading business
Not applicable
2.The total number of preferred shareholders and the top 10 preferred shareholders’ shareholdings of
the Company
□Applicable √Not applicable
III. Other Significant Events
□Applicable √Not applicable
IV. Quarterly Financial Statements
1. Financial statements
(1)Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB
Item Mar 31 ,2023 Jan 1, 2023Current assets:
Cash and cash equivalent226,605,940.55659,606,109.17Financial assets held for trading1,223,933,098.821,268,124,738.43Derivative financial assetsNotes receivable226,946,130.18307,322,625.28Accounts receivable926,832,438.54856,529,854.29Financing receivable177,171,988.16111,064,333.27Advance payment206,578,966.50139,594,005.25Other receivables32,043,959.3929,316,161.67Thereof: Interest receivable
Dividend receivable2,601,281.282,601,281.28Inventories1,890,227,408.641,912,047,999.38Contract assets128,323,476.15124,651,440.99Assets held for saleNon-current assets due within one yearOther current assets408,630,927.828,781,928.47Total current assets5,447,294,334.755,417,039,196.20Non-current assets:
Debt investmentsOther debt investmentsLong-term receivableLong-term equity investment408,184,263.46397,830,998.40Investment in other equity instruments57,477,364.1057,477,364.10Other non-current financial assetsInvestment real estate12,296,268.766,373,135.42Fixed assets181,299,532.62192,561,428.46
Construction in progress30,846,546.5627,241,137.26Productive biological assetsOil and gas assetsRight-of-use assets2,817,148.292,349,347.56Intangible assets55,945,811.7357,090,300.02Development expenditureGoodwill1,120,909.261,120,909.26Long-term deferred expenses80,707.9684,955.75Deferred income tax assets42,576,259.9240,734,119.14Other non-current assets28,284,690.2620,759,073.65Total non-current assets820,929,502.92803,622,769.02Total assets6,268,223,837.676,220,661,965.22Current liabilities:
Short-term loans11,130,000.0031,830,000.00Financial liabilities held for tradingDerivative financial liabilitiesNotes payableAccounts payable244,371,531.04227,581,839.47Advance from customers421,830.0096,750.00Contract liabilities1,466,322,523.871,725,223,007.33Employee benefits payable21,051,885.7970,475,565.86Taxes payable39,174,387.3854,028,725.59Other payables17,770,244.013,035,031.46Thereof: Interest payable
Dividend payableLiabilities held for saleNon-current liabilities due within one year2,388,882.642,097,594.87Other current liabilities138,116,798.02119,463,543.08Total current liabilities1,940,748,082.752,233,832,057.66Non-current liabilities:
Long-term loansBonds payable419,786,939.84415,824,511.11Thereof: Preferred stock
Perpetual debtLease liabilities185,099.09
Long-term payablesLong-term employee benefits payableEstimated liabilities4,706,352.745,195,263.40Deferred income4,089,541.584,781,549.13Deferred income tax liability15,068,526.7614,903,697.98Other non-current liabilities340,817,029.20199,568,192.56Total non-current liabilities784,653,489.21640,273,214.18Total Liabilities2,725,401,571.962,874,105,271.84Shareholders' equity:
Share capital1,022,553,774.001,022,550,000.00Other equity instruments32,099,241.7732,103,507.97Thereof: Preferred stock
Perpetual debtCapital reserve228,737,183.93226,083,353.77Minus: treasury sharesOther comprehensive income22,690,994.0222,852,245.26Special reserve29,229,248.3429,243,725.77Surplus reserve300,522,057.11300,522,057.11General risk reserveRetained earnings1,746,444,708.561,536,091,897.65Total equity attributable to shareholders of parentcompany
3,382,277,207.733,169,446,787.53Minority shareholder equity160,545,057.98177,109,905.85Total shareholders' equity3,542,822,265.713,346,556,693.38Total liabilities and shareholders' equity6,268,223,837.676,220,661,965.22
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2)Consolidated Income Statement
Unit: RMB
Item Current period Last period
1. Total revenue
729,710,396.08 504,286,748.22Thereof : Operating revenue729,710,396.08 504,286,748.22
2. Total cost
528,536,727.87 374,497,565.09Thereof: Cost of sales438,999,834.77 304,956,236.67
Taxes and surcharges3,824,169.65 5,493,462.60Selling expenses27,408,242.78 18,514,567.31General and administrative expenses19,973,449.70 28,743,732.58Research and development expenses38,345,817.26 16,829,101.44Financial expenses-14,786.29 -39,535.51Thereof : Interest expenses2,792,694.99 391,974.12Interest income3,144,024.38 1,545,360.24Add: Other income39,246,555.78 12,886,757.68Investment income (loss is stated with “-”)14,813,438.64 25,896,672.03Thereof: Investment income from associates and jointventures
8,194,553.90 21,352,331.05Gain from the derecognition of the financial assets measuredat amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging gains ("-" for losses)
Gains from changes in fair value (loss is stated with “-”)1,797,823.96 1,761,695.04Credit impairment losses (loss is stated with “-”)-5,699,807.43 11,240,084.91Asset impairment losses (loss is stated with “-”)-573,795.00 -5,674,134.02Gains from disposal of assets (loss is stated with “-”)-16,327.02 72.23
3. Operating profit (loss is stated with “-”)
250,741,557.14 175,900,331.00Add: Non-operating income
3.15 1.37Less: Non-operating expenses374,087.72 302.22
4. Total profit (loss is stated with “-”)
250,367,472.57 175,900,030.15Less: Income tax expenses31,903,311.42 22,598,201.80
5. Net profit (loss is stated with “-”)
218,464,161.15 153,301,828.35
(1) Classified by continuity of operations
Net profit from continuing operations(loss is stated with “-”)218,464,161.15 153,301,828.35Net profit from discontinued operations(loss is stated with “-”)
(2) Classified by ownership of the equity
Attributable to shareholders of the Parent Company210,214,585.50 153,163,366.86Minority interests8,249,575.65 138,461.49
6. Other comprehensive income, net of tax
-161,251.24 -2,269,516.24Other comprehensive income attributable to shareholders of theParent Company, net of tax
-161,251.24 -1,154,505.94
(1) Other comprehensive income items which will not be
reclassified subsequently to profit or loss
1) Changes arising from re-measurement of defined benefit
plan
2) Other comprehensive income that will not be transferred
subsequently to profit or loss under the equity method
3) Changes in the fair value of the investment in other
equity instruments
4)Changes in the fair value of the Company’s own credit
risk
5)Others
(2) Other comprehensive income items which will be reclassified
subsequently to profit or loss
-161,251.24 -1,154,505.94
1) Other comprehensive income that will be transferred
subsequently to profit or loss under the equity method
-161,251.24
2)Changes in the fair value of other debt investments
3)Amount of financial assets reclassified and included in
other comprehensive income
4) Credit impairment reserves for other debt investment
5) Cash flow hedging reserve
6) Translation differences arising from translation of
foreign currency financial statements
-1,154,505.94
7)Others
Other comprehensive income attributable to minority shareholders,net of tax
-1,115,010.30
7. Total comprehensive income
218,302,909.91 151,032,312.11Attributable to shareholders of the Parent Company210,053,334.26 152,008,860.92Minority interests8,249,575.65 -976,548.81
8. Earnings per share
(1) Basic earnings per share
0.2056 0.1498
(2) Diluted earnings per share
0.2025 0.1498
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(3)Consolidated Cash Flow Statement
Unit: RMB
Item Current period Last period
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services497,741,596.66 514,418,145.84Refund of taxes and surcharges37,419,572.33 11,829,089.68Other cash receipts relating to operating activities9,530,482.55 3,292,892.48Sub-total of cash inflows from operating activities544,691,651.54 529,540,128.00Cash paid for goods and services323,324,192.97 268,538,637.32Cash paid to employees and paid on behalf of employees156,344,892.59 132,880,681.95Payments of taxes and surcharges88,271,570.01 51,220,106.86Other cash payments relating to operating activities30,551,392.98 20,958,399.06Sub-total of cash outflows from operating activities598,492,048.55 473,597,825.19Net cash flows from operating activities-53,800,397.01 55,942,302.81
2. Cash flows from investing activitiesCash received from withdrawing investments1,316,610,000.00 674,630,000.00Cash received from investment income6,707,398.11 14,201,242.45Net cash received from disposal of fixed assets, intangible assets andother long term assets
47,787.61 174.23Net cash received from disposal of subsidiaries and other operatingunits
Other cash receipts relating to investing activities
Sub-total of cash inflows from investing activities1,323,365,185.72 688,831,416.68Cash paid to acquire fixed assets, intangible assets and otherlong-term assets
4,644,029.61 6,454,716.61Cash paid to acquire investments1,670,457,000.00 633,300,000.00Net increase of mortgaged loans
Net cash paid to acquire subsidiaries and other operating units
Other cash payments relating to investing activities310,300.00Sub-total of cash outflows from investing activities1,675,411,329.61 639,754,716.61Net cash flows from investing activities-352,046,143.89 49,076,700.07
3. Cash flows from financing activitiesCash received from capital contributions700,000.00Thereof: Cash received by subsidiaries from minority shareholders’capital contributions
700,000.00
Cash received from borrowings8,130,000.00 16,130,000.00Other cash receipts from financing activities460,000.00Sub-total of cash inflows from financing activities9,290,000.00 16,130,000.00Cash repayments of borrowings22,130,000.00 26,130,000.00Distribution of dividends or profits and payments for interestexpenses
205,494.50 358,457.47Thereof: Cash payments for dividends or profit to minorityshareholders by subsidiaries
Other cash payments relating to financing activities13,627,996.35 513,457.48Sub-total of cash outflows from financing activities35,963,490.85 27,001,914.95Net cash flows from financing activities-26,673,490.85 -10,871,914.95
4. Effect of foreign exchange rate changes on cash and cash equivalents
82,688.27 -53,449.63
5. Net increase in cash and cash equivalents
-432,437,343.48 94,093,638.30Add: Cash and cash equivalents at the beginning of period656,593,226.15 290,330,558.56
6. Cash and cash equivalents at the end of period
224,155,882.67 384,424,196.86
2. Auditor’s report
Whether this First Interim Report has been audited by auditing firm or not?
□Yes √No
TheFirst Interim Report has not been audited by auditing firm.
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
April 28
th, 2023