HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2023
（Abstract）Ⅰ. Important Notes
This Abstract is extracted from Annual Report 2023. In order to have a full understanding of the operatingresults, financial condition and future development planning of the Company, investors are suggested to readthe full report carefully on the media designated by the China Securities Regulatory Commission (the“CSRC”). The Company’s 2023 Annual Report is prepared and published in Chinese version, and theEnglish version is for reference only. Should there be any inconsistency between the Chinese version andEnglish version, the Chinese version shall prevail.
All directors attended the Board Meeting in person for reviewing of this Annual Report.
Indicate by check mark if independent auditor issues non-standard unqualified opinion.
□Applicable √Not applicable
Indicate by check mark if there is a pre-arranged plan of profit distribution or transferring capital reserve intocommon stock for the report period which has been reviewed by the Board of Directors.
√Applicable □Not applicable
Indicate by check mark if transferring capital reserve into common stock.
□Yes √No
The Company’s common stock pre-arranged profit distribution plan approved by the ninth meeting of thefifth Board of Directors is as follows: based on 1,021,986,802 shares, which was the total share capital of theShenzhen Stock Exchange closed on December 31
st, 2023, deducting shares in buy-back account, theCompany will pay a cash dividend of RMB 2.50 (tax included) for every 10 shares to all shareholders, and 0bonus shares, and no increase of common stock through capital reserve.
According to the Proposal on the Company’s Public Offering of Convertible Corporate Bonds, allshareholders (including those formed by the convertible bonds) registered on the date of registration of thedividend payment are equally entitled to participate in the current distribution of profits.
Indicate by check mark if preplan for preferred stocks profit distribution to shareholders for the report periodwhich has been reviewed and approved by the Board of Directors.
□Applicable √Not applicable
II. Basic Situation of the Company
1. Company Profile
| Stock Abbreviation | Boshi | Stock Code | 002698 | |
| Stock Exchange for Stock Listing | Shenzhen Stock Exchange | |||
| Contact Person and Contact Information | Secretary of the Board | Securities Affairs Representative | ||
| Name | Chen Bo | Zhang Junhui | ||
| Contact Address | 9 Donghu Street, Concentration Zone of Yingbin Road, Harbin Development Zone | 9 Donghu Street, Concentration Zone of Yingbin Road, Harbin Development Zone | ||
| Fax | +86-451-84367022 | +86-451-84367022 | ||
| Tel | +86-451-84367021 | +86-451-84367021 | ||
| ir@boshi.cn | zhangjh@boshi.cn | |||
In order to speed up the planning and implementation of the construction function of the Company’sregional headquarters and provide convenience for value investment, the Company has set up a “Securitiesand Investment Affairs Office” at No. 1102, Building 2, Huijin Building, No. 55, Shangxiang Road, HuaqiaoEconomic Development Zone, Kunshan City, Jiangsu Province. Welcome securities investors to inquireabout the follow-up of the investigation.
2. Key Financial Information
(1) Key accounting data and financial indicators in the past three years
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previousyear.
√Yes □No
Retroactive adjustment or restatement reasons
In accordance with the Accounting Standards Interpretation for Business Enterprises No. 16 (Finance andAccounting (2022) No. 31) issued by the Ministry of Finance in November 2022, the Company adjusts thetaxable temporary differences and deductible temporary differences arising from the lease liabilities and userights assets recognized by the leasing business.
Unit: RMB
| 2023 | 2022 | Increase/decrease of 2023 over 2022 | 2021 | ||||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | |||
| Operating Revenue | 2,565,408,783.42 | 2,153,746,152.69 | 2,153,746,152.69 | 19.11% | 2,112,954,813.09 | 2,112,954,813.09 | |
| Net profit attributable to parent company’s shareholders | 533,591,213.86 | 445,038,600.37 | 445,041,007.98 | 19.90% | 490,327,299.72 | 490,327,299.72 | |
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company | 485,726,824.70 | 414,143,401.62 | 414,145,809.23 | 17.28% | 459,328,151.59 | 459,328,151.59 | |
| Net cash flow from operating activities | 138,942,658.01 | 451,531,966.20 | 451,531,966.20 | -69.23% | 399,773,130.75 | 399,773,130.75 | |
| Basic earnings per share (RMB/share) | 0.5218 | 0.4352 | 0.4352 | 19.90% | 0.4795 | 0.4795 | |
| Diluted earnings per share(RMB/share) | 0.5190 | 0.4352 | 0.4352 | 19.26% | 0.4795 | 0.4795 | |
| Weighted average return on equity | 16.22% | 14.70% | 14.70% | 1.52% | 18.02% | 18.02% | |
| As of Dec.31, 2023 | As of Dec.31, 2022 | Increase/decrease of 2023 over 2022 | As of Dec.31, 2021 | ||||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | |||
| Total assets | 6,648,692,787.99 | 6,220,273,855.91 | 6,220,274,009.69 | 6.89% | 4,901,945,419.82 | 4,901,945,419.82 | |
| Total equity attributable to shareholders of the parent company | 3,450,338,131.69 | 3,169,585,012.94 | 3,169,582,981.14 | 8.86% | 2,879,793,106.39 | 2,879,793,106.39 | |
(2) Key accounting data by quarter
Unit: RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating revenue | 729,710,396.08 | 659,640,271.76 | 592,913,713.25 | 583,144,402.33 |
| Net profit attributable to parent company’s shareholders | 210,214,585.50 | 125,251,218.77 | 99,131,174.72 | 98,994,234.87 |
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company | 198,069,179.12 | 111,794,584.53 | 91,961,860.39 | 83,901,200.66 |
| Net cash flows from operating activities | -53,800,397.01 | -59,476,376.98 | 107,849,374.04 | 144,370,057.96 |
Indicate by check mark if any material difference between the above financial indicators or their summationsand those which have been disclosed in the Company’s Quarterly or Interim report.
□Yes √No
3. Shareholders Information
(1)Total number of common shareholders and preference shareholders with voting rights recoveredand top ten common shareholders
Unit: Share
| Total number of shareholders of common stocks at the end of the reporting period | 23,932 | Total number of shareholders of common stocks at previous month-end of this report’s disclosure | 33,596 | Total number of shareholders of preferred stock with resumed voting right at the end of the reporting period | 0 | Total number of shareholders of preferred stock with resumed voting rights at previous month-end of this report’s disclosure | 0 | |||
| Top 10 shareholders(Excluding shares lent in refinancing) | ||||||||||
| Name | Nature | Ownership | Quantity of stocks | Quantity of restricted stocks held | Pledged, marked or frozen stocks | |||||
| Status | Quantity | |||||||||
| Unicom Kaixing Equity Investment Management (Zhuhai Hengqin) Limited - Lianchuang Weilai (Wuhan) Intelligent Manufacturing | Others | 14.20% | 145,176,676 | Not applicable | ||||||
| Industrial Investment Partnership (Limited Partnership) | ||||||
| Deng Xijun | Domestic natural person | 9.41% | 96,181,562 | 72,136,172 | Not applicable | |
| Zhang Yuchun | Domestic natural person | 8.09% | 82,696,357 | 62,022,268 | Not applicable | |
| Wang Chungang | Domestic natural person | 5.61% | 57,394,047 | 43,045,535 | Not applicable | |
| Cai Zhihong | Domestic natural person | 4.96% | 50,677,029 | Not applicable | ||
| Cai Hegao | Domestic natural person | 4.89% | 50,000,000 | Not applicable | ||
| Harbin Institute of Technology Asset Management Co. Ltd | Domestic state-owned corporate | 3.00% | 30,678,500 | Not applicable | ||
| Cheng Fang | Domestic natural person | 1.59% | 16,261,358 | Not applicable | ||
| Tan Jianxun | Domestic natural person | 1.39% | 14,174,933 | Not applicable | ||
| China Life Insurance Company Limited - Traditional - General Insurance Products -005L-CT001 Shanghai | Others | 1.19% | 12,118,870 | Not applicable |
Top 10 shareholders involved in refinancing shares lending
□Applicable √Not applicable
Changes in shares that the top 10 shareholders compared with the prior period
√ Applicable □Not applicable
Unit: shares
| Changes in shares that the top 10 shareholders | |||||
| Full name of shareholder | Add/exit in this reporting period | Shares lent in refinancing and not yet returned at the period-end | Shares in the common account and credit account plus shares lent in refinancing and not yet returned at the period-end | ||
| Total shares | As % of total share capital | Total shares | As % of total share capital | ||
| China Life Insurance Company Limited - Traditional - General Insurance Products -005L-CT001 Shanghai | Add | 0 | 0.00% | 0 | 0.00% |
| Bank of China Co., Ltd.-China Merchant Ruiwen Hybrid Securities Investment Fund | Exit | 0 | 0.00% | 0 | 0.00% |
(2) The total number of preferred shareholders and the top 10 preferred shareholders’ shareholdingsof the Company
□Applicable √Not applicable
During the reporting period, the Company did not have preferred stockholders holding shares.
(3) The ownership and controlling relationship between the Company and its actual controller inform of diagram
4. Bonds
(1) Bond profile
| Bond name | Abbreviation | Bond code | Date of issue | Maturity | Balance (RMB’0,000) | Coupon rate |
ConvertibleCorporate Bonds of
Harbin BoshiAutomation Co., Ltd.
| Convertible Corporate Bonds of Harbin Boshi Automation Co., Ltd. | Boshi Convertible Bonds | 127072 | Sep. 22nd, 2022 | Sep. 21st, 2028 | 44,989.57 | 1st year 0.30% 2nd year 0.50% 3rd year 1.00% 4th year 1.50% 5th year 1.80% 6th year 2.00% |
Bond redemption and interestpayment during the reportingperiod
| Bond redemption and interest payment during the reporting period | ① Interest of the first year has been paid at par on Sep. 22nd, 2023. The interest is RMB 3.00 (inclusive of tax) for every 10 “Boshi Convertible Bonds”（Face value of RMB 1,000）. ② Claims registration date: Sep. 21st, 2023 ③ Ex-dividend date: Sep. 22nd, 2023 ④ Interest payment date: Sep. 22nd, 2023 |
(2) Top 10 convertible bond holders
| NO. | Name | Nature | Number of convertible bonds held at the period-end | Amount of convertible bonds held at the period end (RMB) | As % of convertible bonds held at the period end |
| 1 | China Galaxy Securities Co., Ltd | Domestic state-owned corporate | 423,145 | 42,314,500.00 | 9.41% |
| 2 | China CITIC Bank Co., LTd.-Sino Credit Bond Securities Investment Fund | Others | 363,000 | 36,300,000.00 | 8.07% |
| 3 | China Merchants Securities Asset | Others | 222,178 | 22,217,800.00 | 4.94% |
| Management-Harmony Health Insurance Co., Ltd.-Universal products-China Merchants Asset Management Anwin 202203 Single Asset Management Plan | |||||
| 4 | Cai Zhihong | Domestic natural person | 198,009 | 19,800,900.00 | 4.40% |
| 5 | China Construction Bank Co., Ltd.-Huaxia Convertible Bond Enhanced Bond Securities Investment Fund | Others | 185,639 | 18,563,900.00 | 4.13% |
| 6 | Zhongtai Securities Asset Management - Gansu Bank “Huifu” Series of Financial Products Plan - Qilu Asset Management 0006 Directional Asset Management Contract | Others | 165,453 | 16,545,300.00 | 3.68% |
| 7 | China Merchants Bank Co., Ltd.-Huabao Convertible Bond Bond Securities Investment Fund | Others | 137,320 | 13,732,000.00 | 3.05% |
| 8 | Industrial and Commercial Bank of China -Ping An Select Value-added NO.1 Hybrid Pension Product | Others | 124,160 | 12,416,000.00 | 2.76% |
| 9 | Taiping Pension Eifeng fixed income pension products - Industrial and Commercial Bank of China Limited | Others | 101,641 | 10,164,100.00 | 2.26% |
| 10 | Yi’an (Shanghai) Investment Co., Ltd.-Aijian - Yi’an Convertible Bond No. 2 Private Equity Investment Fund | Others | 89,730 | 8,973,000.00 | 1.99% |
(3) Latest rating and rating change
On June 26
th
, 2023, China Lianhe Credit Rating Co., Ltd. issued the 2023 Credit Rating Report of HarbinBoshi Automation Co., Ltd.’s Public Issuance of Convertible Corporate Bonds. The long-term credit ratingof the Company maintained “AA”, the credit rating of this convertible corporate bond was “AA”, and thebond rating outlook was “stable”. The result of this tracking rating did not changed from the previous rating.The credit rating report mentioned above is available at cninfo.com.cn.
(4) Selected financial information of the Company for the past two years
Unit: RMB’0,000
| Item | 2023 | 2022 | Increase/Decrease over last year | Explanation |
Liability /asset ratio
| Liability /asset ratio | 45.89% | 46.20% | -0.31% |
Net profit after deductingnon-recurring profit or lossattributable to shareholders of theparent company
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company | 48,572.68 | 41,414.58 | 17.28% |
EBITDA/liability ratio
| EBITDA/liability ratio | 149.15% | 122.32% | 26.83% |
Interest cover (times)
| Interest cover (times) | 43.40 | 104.76 | -58.57% | Mainly due to interest expenses caused by convertible corporate bonds increased year-on-year. |
Ⅲ.Important Issues
The Company held the sixth meeting of the fifth Board of Directors on November 1
st, 2023, reviewed andpassed the Proposal on the Plan to Buyback Part of the Company’s Shares. As of December 31
st
, 2023, theCompany has done 569,800 shares buy-back of the Company in total, accounting for 0.06% of the totalCompany’s share capital, with the highest transaction price of RMB16.00 per share and the lowest price ofRMB14.91 per share, with a total transaction amount of RMB 8,864,709.00 (excluding transaction fees). Asof March 15
th
, 2024, the Company confirmed that this share buy-back plan has been completed, and theCompany has done 7,203,019 shares buy-back of the Company in total, accounting for 0.70% of the totalshare capital, with the highest transaction price of RMB 17.88 per share and the lowest transaction price ofRMB 10.58 per share. The total transaction amount is RMB 100,125,282.85 (excluding transaction fees).
IV. Management Discussion and Analysis
1. The Company’s Industry Status during the Reporting Period
(1) Industry overview
According to the proportion of revenue during the reporting period, the Company’s main businesses in itsindustry are shown in the following figure：
The core growth businesses of the Company are intelligent manufacturing equipment and industrial servicesrooted in intelligent manufacturing equipment, which belong to high-end equipment manufacturing industryand modern service industry respectively. Moreover, they are all key industrial directions supported andencouraged by the State. From the perspective of revenue composition, the revenue of two core growingbusinesses, intelligent manufacturing equipment and industrial services, account for 96% of total, as well assupplemented beneficially by environmental protection process equipment.
Intelligent Manufacturing Equipment：
“Manufacturing is the main body of the national economy, the foundation of building the country, theinstrument of rejuvenating the country and the foundation of strengthening the country.” Made in China2025 points out that “accelerating the integrated development of the new generation of informationtechnology and manufacturing technology and taking intelligent manufacturing are the main direction of thein-depth integration of informatization and industrialization.” In recent years, the state issued the 14
th
Five-Year Plan for Intelligent Manufacturing Development, the 14
th
Five-Year Plan for the Development ofRobot Industry, the 14
th
Five-Year Plan for In-depth Integration of IT Application and Industrialization, the
th
Five-Year Plan for the Development of Digital Economy, “Robot Plus” Application and ImplementationPlan, Implementation Opinions on Promoting Innovative Development of Future Industries, whichestablished the high-end equipment manufacturing industry in the “14
th
Five-Year Plan” and 2035 long termgoals, promoted the layout of future industrial innovation and development, provided clear guidelines anddirections for accelerating the construction of a manufacturing power, a digital industry and a digital Chinaand promoted the development of China’s intelligent manufacturing and digital economy.
From the industry practice, large-scale Chinese manufacturing enterprises generally use automated productlines, however, a low percentage of them are digitized among them, not much data is shared among factories,
and fewer intelligent technologies are used. The overall level of intelligent manufacturing in China is still faraway from the world’s advanced level. It is foreseeable that the endogenous power of leading manufacturingenterprises has a large potential demand for intelligent manufacturing equipment and the overall solution ofintelligent factories, and the market demand presents long-term, sustainable and without obvious periodicity.
The Company has been engaging in the field of intelligent equipment for a long time, with independentintellectual property rights of intelligent manufacturing equipment products, to help China’s manufacturingpromote quality and efficiency. Replacing imported equipment or industry-first applications to promote thetechnological progress of related industries with scientific and technological innovation. In recent years, theState actively advocates the implementation of industrial digitalization strategies. The Company hasaccelerated the accumulation application of digital and intelligent technologies mastered by the Company.Now it has the designing and implementation capability of digital workshops，intelligent factories and overallsolutions in multiple product application fields.
The Company’s intelligent manufacturing equipment are widely applied in petrochemical, sub-merged arcfurnace, new energy, grain, animal feeds, building materials, medicine, food, port, and many other industries,to provide customers with efficient intelligent manufacturing equipment, and promote the application andimplementation of the overall smart factory solution. The Company’s technology and intelligent equipmentare in the leading position in the application field of domestic industry, no competitors in the same volume;In some fields, the Company products and technology applications are in the world leading level.
The Company implements differentiation competitive strategy (technology leadership). With theaccumulation and industrial application practice in the direction of automation, digital, intelligent technology,the Company concentrates advantage, integrates resources, saves competitiveness, to response and guild themarket demand actively with rich product line and intelligent manufacturing overall solution; The Companystrives to achieve its own relatively fast development and bring desirable returns to shareholders.
Industrial Service：
On March 16
th, 2021, the National Development and Reform Commission, the Ministry of Science andTechnology, the Ministry of Industry and Information Technology and the like totaling thirteen departmentsjointly issued the Opinions on Accelerating the High-quality Development of the Manufacturing ServiceIndustry, pointing out, “manufacturing service industry is an important support for improving thecompetitiveness and comprehensive strength of manufacturing products, promoting the transformation andupgrading of manufacturing industry and high-quality development. At present, China’s manufacturingservice industry supply quality is not high, the degree of specialization and socialization is not enough, therole of leading the manufacturing value chain is not obvious, and there is still a gap between therequirements of building a modern economic system and realizing high-quality economic development.” “By2025, the role of the manufacturing service industry will be significantly enhanced in improving the qualityand efficiency, innovation capacity, and efficiency of resource allocation, and play a more prominent role insupporting and leading the high-quality development of the manufacturing industry” to “realize the couplingand integration of the manufacturing industry and the manufacturing service industry”.
The production and operation management service of the Company’s intelligent manufacturing equipment
field includes integrated industrial services for process plant and equipment daily operation, repair,maintenance, finished products outbound & inbound, transfer, truck loading and so on. The Company’sprofessional services contribute customers to reduce costs and increase efficiency, concentrate resources oncore competitiveness, and achieve high-quality development. The Company relays on the leading technologyadvantage, and continues to vigorously promote the strategy of product and service integration over the years.The professional, economic, high-quality and efficient service has been recognized and praised bycustomers.
Based on the recognition and encouragement of Company’s outstanding achievements in the integrateddevelopment of intelligent manufacturing equipment and industrial services, the Company was identified as“Pilot Unit of Advanced Manufacturing and Modern Service Industry” in August 2021 by the NationalDevelopment and Reform Commission. In January 2023, the Company was selected into the “The FourthBatch of Service-oriented Manufacturing Demonstration List” of the General Office of the Ministry ofIndustry and Information Technology. The intelligent equipment industry services have covered all regionsexcept Hong Kong, Macau, Taiwan and Tibet, the service scale and profitability are in the leading position inthe industry. The Company’s industrial services of intelligent equipment, on the one hand, will maintain asteady growth with the growth of product sales and equipment implement stock. On the other hand, this willactively develop the deep service needs of customers, after the Company undertakes and implements newproduction and operation industrial service projects, the service scale expansion is expected to accelerate.
During 2023, The Company’s overall industrial services revenue exceeded RMB 700 million for the firsttime, reaching RMB 717 million, increase 12.21% year-on-year. The revenue of industrial services, animportant source that constitutes the Company’s revenue and profit, has grown year after year, this willenhance the whole Company’s ability to resist risks. While serving its own product customers, theCompany’s industrial service network, service capabilities, with the ability to undertake industrial servicemarket demand outside of the Boshi equipment, is expected to form a “industrial services plus” to empowerthe new direction of the industry of intelligent manufacturing equipment.
Environmental Protection Process and Equipment:
“The 14
th
Five-Year Plan” takes “achieving new progress in ecological civilization construction” as one ofthe main goals. The Company will continue to improve environmental quality and promote a comprehensivegreen transformation of economic and social development. Industrial waste acid and acidic gas treatment andrecycling project, implemented by Harbin Boao Environmental Technology Co., Ltd, the holding subsidiaryof the Company, can collect and treat industrial waste sulfuric acid and sulfur-containing acid gases inchemical production to produce high-purity sulfuric acid for recycling production, and to recycle and reusethe heat energy released in the process to achieve energy saving, emission reduction, recycling, economicand environmental results. During this reporting period, the revenue of environmental protection process andequipment accounted for 4% of total, which played a beneficial complementary role in the overallperformance of the Company.
(2) Industry policy impact
In recent years, the state has issued intensive industrial policies and industry plans related to intelligent
manufacturing, robot and digital economy, industry stabilized growth and other related industry planning andindustry promotion policies to lead the development of the industry. The field of high-end intelligentmanufacturing equipment is facing major development opportunities. At the same time, the technologyaccumulation and technological innovation of industry enterprises are constantly improved, with benefitsfrom the promoting of national digital infrastructure construction, the project application and implementationability is increasing. From the Company’s long-term industrial practice in the field of intelligentmanufacturing equipment industry, intelligent equipment, digitalization and intelligence are in great demandfor China’s manufacturing enterprises, and the field of intelligent manufacturing equipment will continue toflourish.
In January 2023, seventeen departments including the Ministry of Industry and Information Technology,jointly issued the “Robot Plus” Application Action and Implementation Plan, proposed the density ofmanufacturing robot will double compared with 2020, by 2025. The depth and breadth of the application ofservice robots and special robots industries have been significantly improved, and the ability of robots topromote high-quality economic and social development will be significantly enhanced. Focus on 10 keyapplication areas, break through more than 100 kinds of robot innovation application technology andsolutions, promote more than 200 robot typical application scenarios with high technical level, innovativeapplication mode and significant application effect, build a batch of “robot plus” benchmarking enterprises,and construct a batch of application experience centers and experimental verification centers.
In August 2023, seven departments including the Ministry of Industry and Information Technology, jointlyissued the Petrochemical and Chemical Industry Growth Stabilization Work Program pointed out that: thepetrochemical and chemical industry is the national economy, basic, pillar-type industries, the total economicvolume of the industry, the industry correlation is high, it is related to the stable growth of industry, thesteady operation of the economy. The program to focus on promoting investment, expanding consumption,expanding foreign trade, stabilizing production, strong enterprises, excellent environment, to achieveeffective improvement in quality and reasonable growth in quantity, to promote the petrochemical andchemical industry, stable operation, and consolidate the foundation of high-quality development of theindustry as the guiding ideology; In order to expand effective investment, promote the development ofhigh-end, green and intelligent development and other work initiatives, to promote the construction of majorprojects, and to increase the intensity of technological transformation. It will issue and implement guidelinesfor the construction of intelligent manufacturing standard systems in the petrochemical and chemicalindustries, formulate standards for the construction of intelligent factories, select typical applicationscenarios, construct intelligent manufacturing demonstration factories, cultivate characteristic industrialInternet platforms for key industries, and promote the intelligent upgrading of the industry.
In October 2023, the Ministry of Industry and Information Technology (MIIT) issued the Guiding Opinionson the Innovative Development of Humanoid Robots, pointed out that humanoid robots integrate artificialintelligence, high-end manufacturing, new materials and other advanced technologies, and are expected tobecome a disruptive product following computers, smart phones and new energy vehicles, which willprofoundly change the way of production and life of human beings, and reshape the pattern of globalindustrial development. By 2025, a humanoid robot innovation system will be initially established, andbreakthroughs will be made in a number of key technologies such as “brain, cerebellum and limb”, ensuringthe safe and effective supply of core components. The complete robot products will reach the international
advanced level and realize mass production, with demonstration applications in special, manufacturing andpeople’s livelihood service scenarios, as well as exploring the formation of effective governance mechanismsand means. We will cultivate 2-3 ecological enterprises with global influence and a batch of specialized,special and new small and medium-sized enterprises, create 2-3 industrial development clusters, andcultivate and develop a batch of new businesses, modes and modes of operation. By 2027, the technologicalinnovation capability of humanoid robots will be significantly improved, a safe and reliable industrial chainsupply chain system will be formed, an industrial ecosystem with international competitiveness will be built,and the comprehensive strength will reach the world advanced level. The industry will accelerate therealization of large-scale development, the application scenarios will become richer, and the related productswill be deeply integrated into the real economy, becoming an important new engine of economic growth.
In January 2024, seven departments including the Ministry of Industry and Information Technology jointlyissued the Implementation Opinions on Promoting Future Industrial Innovation and Development. Opinionspointed out that: future industries are driven by cutting-edge technologies, currently in the incubation anddevelopment stage or the early stage of industrialization, and are forward-looking emerging industries withsignificant strategic, leading, disruptive and uncertainty. Vigorously developing future industries is astrategic choice to lead scientific and technological progress, drive industrial upgrading and cultivate newproductivity. Opinions are clear: by 2025, future industry technology innovation, industry cultivation,security governance and other comprehensive development, some areas to reach the international advancedlevel, the scale of the industry steadily increased. We will build a number of future industry incubators andpilot zones, break through one hundred cutting-edge key core technologies, form one hundred iconicproducts, build one hundred leading enterprises, develop one hundred typical application scenarios,formulate one hundred key standards, cultivate one hundred professional service organizations, and initiallyform a future industry development model in line with China’s actual situation. By 2027, the comprehensivestrength of future industries will be significantly improved, and global leadership will be realized in somefields. Key core technologies have made major breakthroughs, a number of new technologies, new products,new business forms, new models have been generally applied, key industries to achieve large-scaledevelopment, to cultivate a number of ecologically dominant leading enterprises, to build a synergisticlinkage between future industries and advantaged industries, emerging industries, traditional industries, thedevelopment pattern, the formation of a long-term mechanism for sustainable development, and to becomethe world’s important source of the future of the industry. Opinions pointed out to grasp the global scientificand technological innovation and industrial development trends, focusing on promoting the future ofmanufacturing, the future of information, the future of materials, the future of energy, the future of space andthe future of the health of the six major directions of industrial development.
In January 2024, nine departments including the Ministry of Industry and Information Technology jointlyissued the Work Plan for the Digital Transformation of the Raw Material Industry (2024-2026) and theImplementation Guide for the Digital Transformation of the Petrochemical and Chemical Industry. It clearlyinterprets that petrochemical and chemical industry is an important pillar industry of the national economyand is a typical process manufacturing, with a wide variety of products, long process flow, mixed materialsand physical properties, harsh working conditions, and mostly involves key supervision of dangerouschemical processes, key supervision of dangerous chemicals and major hazard sources, accelerating thepenetration of new technologies such as artificial intelligence, big data, and mobile Internet. Under the newsituation of increasing resource and environmental constraints and more urgent green and safe developmenttasks, digital transformation is an important means to build a solid green safety bottom line, and it is also an
inevitable choice to improve total factor productivity and create new competitive advantages. By 2026, thelevel of digital networking in the petrochemical and chemical industry will be significantly improved, theintegration of data and reality will continue to deepen, and the intelligent manufacturing capability ofenterprises will be significantly enhanced, with more than 20 new benchmark factories for digitaltransformation, about 10 benchmark 5G factories, more than 70 excellent scenarios for intelligentmanufacturing, and 50 smart chemical parks. The solution supply capacity has reached a new level, and 3 to5 comprehensive solution providers for digital transformation for the petrochemical and chemical industryhave been cultivated.
In February 2024, the fourth meeting of the Financial and Economic Commission of the CPC CentralCommittee proposed that accelerating product replacement is an important measure to promote high-qualitydevelopment, and it is necessary to encourage and guide a new round of large-scale equipment renewal andconsumer goods for new. On March 7
th, 2024, The State Council issued the Action Plan for PromotingLarge-scale Equipment Renewal and Replacing Old Consumer Goods with New Ones, which pointed outthat promoting large-scale equipment renewal and replacing old consumer goods with new ones is animportant measure to accelerate the construction of a new development pattern and promote high-qualitydevelopment, which will effectively promote investment and consumption, and benefit both the current andlong-term. The plan proposes to accelerate the elimination of backward products and equipment, improve thelevel of safety and reliability, and promote the high-end, intelligent and green development of the industry,as well as upgrade and upgrade equipment in key industries. To promote a new type of industrialization, withenergy conservation, carbon reduction, ultra-low emissions, safe production, digital transformation, andintelligent upgrading as important aspects, we will focus on key industries such as steel, nonferrous metals,petrochemicals, chemicals, building materials, electric power, machinery, aviation, shipping, textile, andelectronics, and vigorously promote the upgrading and technological upgrading of production equipment,energy-using equipment, and transmission, transmission and distribution equipment.
The above national industry and industrial support policies, as well as stabilizing growth, boosting demand,and promoting investment and consumption policies and measures, combined with the national “14
th
Five-Year Plan” for the development of the digital economy, “14
th
Five-Year Plan” for the development ofintelligent manufacturing, “14
th
Five-Year Plan” for the development of the robot industry, “14
thFive-YearPlan” for the development of a deeper fusion of informationization and industrialization, etc., which clearlydefines the direction of development, and boosts demand, will be conducive to promoting and facilitating theCompany to achieve sustained, better, and faster development in the mid- and long-terms.
2. Company Main Businesses during the Reporting Period
(1) Main products, services application level and business model of the Company
In the field of post-processing high-end equipment forpowder and granular materials in China it has obviousadvantages and a stable competitive position. In the fieldof post-processing high-end equipment for the newenergy field irregular polysilicon materials, the originalfirst set of applications has promoted the upgrade ofintelligent manufacturing in the industry.Complete product line, covering natural rubber andsynthetic rubber;It is the only supplier which can provide completelarge-scale systems worldwide.
Complete product line, covering natural rubber andsynthetic rubber;It is the only supplier which can provide completelarge-scale systems worldwide.Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory
Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory
It is applied in the post-processing fields for thepowder, granular materials or irregular materials ofpetrochemical, new energy, grain, animal feeds,building materials, medicine, food, ports etc. (such ascrushing, screening, bagging, boxing and transportationof new energy field polysilicon reduced silicon rods,etc.), providing efficient automatic weighing, packagingand palletizing intelligent manufacturing andproduction equipment and overall solutions of smartfactories.
It is applied in the post-processing fields for thepowder, granular materials or irregular materials ofpetrochemical, new energy, grain, animal feeds,building materials, medicine, food, ports etc. (such ascrushing, screening, bagging, boxing and transportationof new energy field polysilicon reduced silicon rods,etc.), providing efficient automatic weighing, packagingand palletizing intelligent manufacturing andproduction equipment and overall solutions of smartfactories.
Post-processing Intelligent Manufacturing
Equipment for Solid Material
Post-processing Intelligent Manufacturing
Equipment for Solid Material
It is intelligent equipment and intelligent plant overallsolution, applied in production process of syntheticrubber and natural rubber and in the fields of productrefining process, dewatering and drying process(rubber washing, cleaning and impurity removal,dewatering, crushing and drying, etc.) and finishedproduct packaging process (weighing, baling,detecting, conveying, packaging and palletizing, etc.)
It is intelligent equipment and intelligent plant overallsolution, applied in production process of syntheticrubber and natural rubber and in the fields of productrefining process, dewatering and drying process(rubber washing, cleaning and impurity removal,dewatering, crushing and drying, etc.) and finishedproduct packaging process (weighing, baling,detecting, conveying, packaging and palletizing, etc.)
Robot Plus
Robot PlusPost-processing Intelligent Manufacturing
Equipment for Rubber
Post-processing Intelligent Manufacturing
Equipment for RubberIntelligent Logistics, Warehousing Systems
Intelligent Logistics, Warehousing Systems
(High temperature) Operation robot for submerged arcfurnace and serialized intelligent products, completesystem solutions are applied for high-risk workingenvironment as well as other special operation robotsand complete system solutions which can replacehigh-risk, harsh working conditions, and heavy manuallabor.
(High temperature) Operation robot for submerged arcfurnace and serialized intelligent products, completesystem solutions are applied for high-risk workingenvironment as well as other special operation robotsand complete system solutions which can replacehigh-risk, harsh working conditions, and heavy manuallabor.
Connecting solid material post-processing intelligentmanufacturing equipment with rubber post-processingintelligent manufacturing equipment to realizeintelligent identification, outbound and inboundwarehousing management, logistics transshipment,fully automatic vehicle loading, etc., which widely usedin many industries of national economy, to helpcustomers to build smart factory overall solutions.
Connecting solid material post-processing intelligentmanufacturing equipment with rubber post-processingintelligent manufacturing equipment to realizeintelligent identification, outbound and inboundwarehousing management, logistics transshipment,fully automatic vehicle loading, etc., which widely usedin many industries of national economy, to helpcustomers to build smart factory overall solutions.
(High temperature) Operation robot for sub-mergedarc furnace and its surrounding systems are in leadingposition worldwide in the field of calcium carbide; It iscarrying out innovative implementation of theintelligent workshop project for the calcium carbide arcfurnace, committed to promoting the production offewer people, unmanned, safe, efficient andenvironmental”, and bringing the traditional industrialtechnology revolution with industry subversivetechnology.
(High temperature) Operation robot for sub-mergedarc furnace and its surrounding systems are in leadingposition worldwide in the field of calcium carbide; It iscarrying out innovative implementation of theintelligent workshop project for the calcium carbide arcfurnace, committed to promoting the production offewer people, unmanned, safe, efficient andenvironmental”, and bringing the traditional industrialtechnology revolution with industry subversivetechnology.
Fully automatic loading machine has formed the firstmover advantage of the scale of application, themarket responded positively, the future demand inmany fields and industries has great potential
(2) Business mode
The business model of large-scale intelligent manufacturing equipment is summarized from sales, productionorganization, product delivery and acceptance, revenue recognition and other links, as shown in thefollowing figure:
Industrial Services
The industrial services, rooted in the above-mentioned related fields of intelligent manufacturingequipment, are mainly integrated service, equipment maintenance and spare parts sales which facingthe operation in the application fields of intelligent manufacturing equipment, after-sales industrialservice, and supplementary industrial service.The Company’s industrial service network and service capability are expected to undertake othermarket demand other than the Company’s own in the future and then form a new industrial directionof “industrial service plus” enabling intelligent manufacturing equipment.
The industrial services, rooted in the above-mentioned related fields of intelligent manufacturingequipment, are mainly integrated service, equipment maintenance and spare parts sales which facingthe operation in the application fields of intelligent manufacturing equipment, after-sales industrialservice, and supplementary industrial service.The Company’s industrial service network and service capability are expected to undertake othermarket demand other than the Company’s own in the future and then form a new industrial directionof “industrial service plus” enabling intelligent manufacturing equipment.
Adhering to the Company’s technological leadership in the field of intelligent equipment, leading service
capabilities and scale in the field
The content characteristics of the operation and maintenance aftermarket and complementary industrialservices business models are summarized in the figure below:
Industrial Services——Operation and After-sales Type Industrial Services
By participating in bidding or negotiating bids, the Company signs integrated service, equipment maintenanceservice agreements with customers (which may include FFS film rolls sales matching with production services),equipment maintenance, operation maintenance and the like to determine the contents and modes of services;For the performance obligations of the service contract performed within a certain period of time, the Companyshall recognize the revenue according to the performance progress within the period of time;The sales mode of spare parts is flexible (the Company initiates stocking or the customer initiates procurement),and the operating revenue is confirmed based on the actual delivery of the product and the time when therevenue confirmation conditions are met
By participating in bidding or negotiating bids, the Company signs integrated service, equipment maintenanceservice agreements with customers (which may include FFS film rolls sales matching with production services),equipment maintenance, operation maintenance and the like to determine the contents and modes of services;For the performance obligations of the service contract performed within a certain period of time, the Companyshall recognize the revenue according to the performance progress within the period of time;The sales mode of spare parts is flexible (the Company initiates stocking or the customer initiates procurement),and the operating revenue is confirmed based on the actual delivery of the product and the time when therevenue confirmation conditions are met
FFS Film roll production enterprise matchingwith industrial services (Nanjing Green NewMaterial Co., Ltd., Company’s holdingsubsidiary) separately sells FFS film rolls, plasticauxiliaries and the like apart from theCompany’s production and operation services;Other kinds with small revenue are not classifiedas material.Revenue recognition: Usually as per the contractsigned with customer, implement the contractand meet the revenue conditions, then confirmthe operating revenue.
FFS Film roll production enterprise matchingwith industrial services (Nanjing Green NewMaterial Co., Ltd., Company’s holdingsubsidiary) separately sells FFS film rolls, plasticauxiliaries and the like apart from theCompany’s production and operation services;Other kinds with small revenue are not classifiedas material.Revenue recognition: Usually as per the contractsigned with customer, implement the contractand meet the revenue conditions, then confirmthe operating revenue.Industrial Services——Supplementary Industrial Services and Miscellaneous
The following environmental protection process equipment business is a useful complement to theCompany’s intelligent manufacturing equipment and industrial services, two of the Company’s core growthbusinesses.
Energy saving, emission reduction and environmental protection process
equipment field
Harbin Boao Environmental Technology Co., Ltd is currently mainly engaged in the design, production, andsales of energy-saving, emission-reduction and environmental protection process equipment which isrepresented by industrial waste acid regeneration process and equipment. Industrial waste acidregeneration technology and equipment collect and process industrial waste sulfuric acid andsulfur-containing acid gas which are produced in the customer’s chemical production to generatehigh-purity sulfuric acid for recycling production, and release heat energy for recycling and reusing,realizing the effects of energy saving and emission-reduction, recycling uses, economy and environmentprotection and help to achieve carbon peak and carbon neutral emission reduction targets.
Harbin Boao Environmental Technology Co., Ltd is currently mainly engaged in the design, production, andsales of energy-saving, emission-reduction and environmental protection process equipment which isrepresented by industrial waste acid regeneration process and equipment. Industrial waste acidregeneration technology and equipment collect and process industrial waste sulfuric acid andsulfur-containing acid gas which are produced in the customer’s chemical production to generatehigh-purity sulfuric acid for recycling production, and release heat energy for recycling and reusing,realizing the effects of energy saving and emission-reduction, recycling uses, economy and environmentprotection and help to achieve carbon peak and carbon neutral emission reduction targets.Realizing the effects of energy saving and emission-reduction, recycling uses, economy
and environment protection.
Realizing the effects of energy saving and emission-reduction, recycling uses, economy
and environment protection.
Industrial waste sulfuric acid,sulfur-containing acid gas
Industrial waste sulfuric acid,sulfur-containing acid gas
Collection → Catalysis → Heatexchange → Purification
Collection → Catalysis → Heatexchange → PurificationHigh-purity sulfuric acid used forrecycling production
(3) Performance, returns and key performance driving factors
The following charts set out the trends in the operating results of the Company’s major businesses since itsIPO in 2012.
Unit: RMB 0.1billion
Legend：Schematic diagram of the Company’s revenue and composition trends
Unit: RMB 0.1billion
Legend：Schematic diagram of the Company’s intelligent manufacturing equipment revenue trend
Unit: RMB 0.1billion
Legend：Schematic of the Company’s industrial services revenue trend
Unit: RMB 0.1billion
Legend：Trends in the Company’s net profit attributable to shareholders of the parent company, cash dividends and cash dividend ratio
(Note: Cash dividend ratio= cash dividends for the period/ net profit attributable to shareholders of the parentcompany for the period. Cumulative dividends from 2012 to 2023 amounted to RMB 1,537 million in 2023,the profit distribution plan adopted by the board of Directors has not yet been implemented; The estimateddata for 2023 do not take the impact of corporate share buybacks into account )
Since 2017, the Company performance has grown well and rapidly, and in 2023, the Company’s revenueexceeded RMB 2.5 billion for the first time, with net profit attributable to shareholders of the parentcompany of RMB 534 million, both of which hit the best level in history. The operating revenue ofintelligent manufacturing equipment business realized a faster growth of 23.68%, and the operating revenueof industrial services continued to grow steadily, with the revenue scale exceeding RMB 700 million for thefirst time. The performance growth is mainly due the Company is facing the strong demand for intelligentmanufacturing equipment for the upgrading of digitization and intellectualization in China’s manufacturingindustry. The Company implements technology research and development and product innovation actively,as well as realizes product category expansions. The Company’s technological innovation and the continuousR&D, application and promotion of new products have achieved the second curve to promote the Company
to continue its growth period. The Company’s intelligent manufacturing equipment has experiencedcontinuous technological innovation and the expansion process of continuous application of new technologyand new products, which has brought the company strong growth in sales of post-processing intelligentmanufacturing equipment for solid material. Represented by high-temperature furnace operation robots, thespecial operation robots and their supporting products are promoted and applied in the fields of high risk,harsh and heavy working conditions including calcium carbide, ferrosilicon, silicon slugs, industrial silicon,etc. Contracts from “robots plus” quickly occupy an important marketing share, which strongly promote therapid growth of the Company’s overall performance; The industry first application of post-processingintelligent equipment for solid material in the field of new energy polysilicon raw materials expended theapplication of Company product in the field of post process intelligent manufacturing equipment for irregularsolid material, which promote revenue growth of the Company’s intelligent manufacturing equipment as anincrement; The growth of industrial services, enabling intelligent manufacturing equipment, keeps steadily,and become an important source of revenue and profit. Energy saving, environmental protection process andequipment business ornaments the Company’s overall revenue.
(4)Developing new quality productivity and actively laying out future industries
In January 2024, seven departments including the Ministry of Industry and Information Technology jointlyissued the Implementation Opinions on Promoting Future Industrial Innovation and Development. At present,a new round of scientific and technological revolution and industrial transformation is accelerating, majorcutting-edge technologies and disruptive technologies continue to emerge, and the integration of scientificand technological innovation and industrial development is deepening, and vigorously cultivating futureindustries has become a strategic choice to lead scientific and technological progress, drive industrialupgrading, open up new tracks, and shape new quality productivity. China has a complete industrial system,a large industrial scale, rich application scenarios and other comprehensive advantages, providing a rich soilfor the development of future industries. The Company will focus on the development of futuremanufacturing, realize intelligent manufacturing, break through key core technologies such as humanoidrobots, meet the major strategic needs of the country and the needs of the people’s better life, and strengthenfuture high-end equipment.
The future industry is driven by cutting-edge technologies. In recent years, with the rapid development,progress and iteration of 3D machine vision, force sensing and haptics, perception, human-machineinteraction technology, composite materials, AI decision-making and other intelligent technologies as well asthe industrial base industry chain of humanoid robot parts and key components, the development ofhumanoid robots has entered into the fast lane, also has attracted extensive attention from domestic andforeign academics and enterprises, and has begun the commercialization process. It is foreseeable thathumanoid robots will play an increasingly important role in future production, service, medical care,education and other fields. As a leading enterprise in the field of intelligent manufacturing equipment andhigh-temperature special operation robots in the application of products, the Company is optimistic aboutthis strategic development opportunity, and takes humanoid robots as one of the important strategic R&Ddirections of the Company. August 18
th2023, the Company and Harbin Institute of Technology (HIT) signeda Strategic Cooperation Framework Agreement to jointly set up a R&D project on the industrialization ofkey humanoid robots and principle prototypes, and jointly promote the industrialization of relatedtechnological achievements and products (Please refer to the Company’s announcement No. 2023-042,published on August 19
th, 2023 for details). At present, the Company is equipped with project team members
and HIT project team members to form a project team, closely cooperate with each other and work efficiently,the R&D projects are under intense and orderly development and testing. The project has built advantages inrobot arm and smart hand, high energy density battery, high power density motor servo driver, whole bodydynamic control algorithm, humanoid robot brain intelligent control technology and so on. The project teamwill release the technical achievements according to the development progress, and the Company willdisclose the major progress in the subsequent announcement or regular report.
In the application field of the Company’s intelligent manufacturing equipment products, it has realized thestage and capability of spanning from single machine and automated production line to digital factory,intelligent factory and overall solutions. Facing the national digitalization strategy and future industrialdemand, the Company has invested heavily in the direction of intelligent factory. During the reporting period,the two calcium carbide intelligent factories (workshops) of Inner Mongolia Junzheng Chemical Co., Ltd.and Ningxia Yinglit Chemical Co., Ltd. implemented by the Company with a total amount about RMB360million progressed as planned, and are expected to accept and revenue will be recognized in 2024. TheCompany will combine machine vision recognition, deep learning, robot control algorithms, expert controlstrategies and other cutting-edge technologies, with industrial Internet communication technology applied tothe intelligent workshop, intelligent factory overall solutions, in order to maximize the possibility ofrealizing few people, unmanned workshop, which relying on intelligent production decision-making andmanagement, as well as to help customers to produce safely and efficient, the development of the future ofmanufacturing, subversive changes in the calcium carbide sub-merged arc furnace of the traditionalproduction process, to realize the industrial upgrading of intelligent manufacturing.
3. Core Competitiveness Analysis
As a technology innovation enterprise, the Company adheres to a differentiated competitive strategy ofleading technology, and relies on a deep understanding of China’s industrial automation field and long-termpractical experience in industrial applications to maintain a competitive position in the field in which it isengaged over time. The Company’s intelligent manufacturing equipment and industrial service businessesare effectively synergized and optimally linked, and environmental protection process equipment to theCompany’s overall performance constitutes a beneficial supplement. In recent years, the business scale isgrowing rapidly, the profitability has been greatly improved, and comprehensive competitiveness has beensteadily enhanced.
(1) Industry status
The Company has a solid competitive advantage in the core growth business areas of intelligentmanufacturing equipment and industrial services, and its main product, technology and application scalehave been playing a leading role for a long time in the domestic product application field, and has won anumber of industry awards.
(2) Leading competitiveness of products and technologies
Technological innovation is the first driving force to lead the development of technology enterprise, andtechnology-leading is an important core competitiveness of the Company. The Company continuouslyimproves its technology application level and technology reserve capacity, seizes new opportunities, andexpands into new fields. Through R&D investment, technology accumulation and technological innovation,outstanding technological leadership advantage continues to enhance and be a competitive position in theindustry.
From the perspective of intelligent manufacturing equipment product line, the Company’s intelligentequipment has advantageous technical features of accuracy and high operational reliability. It is areplacement of imported high-end equipment, suitable for the customer production environment with highefficiency and safety production requirements. In the domestic product application field, products andtechnology are at domestic leading level and international advanced level, among them, partial of the productapplications are in the worldwide leading position.
From the perspective of the overall solution of intelligent manufacturing, The Company applies cutting-edgetechnologies such as machine vision recognition, deep learning, and robot control algorithms to innovativeproducts in multiple categories, integrates multi-category innovative products with the production scenario ofmanufacturing customers, which realizes the overall solution of solid materials post-processing andsub-merged arc furnace smelting products intelligent workshop etc., help customers realize the digital andintelligent transformation and realize intelligent manufacturing.
(3) Underlying technology accumulation and application platform technology to enhance thecompetitiveness.
Mastering the underlying technology, algorithm and application platform technology can truly realize theindependence and controllability of core technology, continuously promote the implementation of the
Company’s technology leading and differentiation strategy, and enhance the Company’s corecompetitiveness. Taking the accumulation and development and application of the Company’s technology inthe field of robot plus as an example, mastering these capabilities can rapidly develop robot products ofdifferent models and different functions according to the needs of the industry. It will also provide strongsupport and guarantee for the R&D of humanoid robots in cooperation with HIT and the application ofspecific scenarios in the future. The core technology must be mastered to realize industrial digitalization.
Legend：Development platform for mobile robot system based on autonomous navigation
Note: This section is schematic diagram, some photos and blurred images, under the premise of technicalconfidentiality, are used to enhance investors’ understanding of relevant applications, the following isomitted.
Legend：Motion control system
Legend：R&D platform of AI system based on artificial intelligence
Legend：Intelligent inspection and digital vision technology
(4) Performance-driven dual engines of two core growth businesses, “intelligent equipment” +“industrial service”.
The Company integrates technology leadership in intelligent equipment and advantages of scale in productapplications with industrial service closely, actively promotes the strategy of products and service integrationand service business achieves rapid development. The Company’s professional, high-quality, efficient andadvanced industrial service model is the necessary guarantee for customers’ continuous production andoperation, stable and efficient production, and achieves a win-win situation for the Company and customers.Intelligent equipment and industrial services promote each other, interact positively and develop together.During the reporting period, the Company’s industrial services revenue exceeded RMB 700 million for thefirst time, reaching RMB 717 million, and continued to maintain steady growth; “intelligent equipment” plus“industrial services” revenue accounted for 96% of the Company’s overall revenue, is the Company’s twocore growth business, constituting the double engine driving the Company’s performance.
Legend: The positive interaction between intelligent equipment and industrial service
(5) “Point → Line → Whole”, the efficient R&D pathway.
Throughout the Company’s technology, product development and industrialization process, the Companyenters new industries and new fields usually with key single unit equipment (“points”); after breakthrough insolving industry pain points, quickly form an automated production line (“line”); With the accumulation oftechnology and the in-depth understanding of the industry, the Company forms the ability to develop a totalsolution (“whole”) for intelligent manufacturing in turn. This process of technological progress from “point→ line → whole” helps the Company to concentrate resources, reduce technology development risks,improve the efficiency of R&D investment outputs, open the ceiling of growth with new products, new fields,new applications, new markets, and comprehensively enhance the Company’s core competitiveness.
Single unit sales (“point”), it is inevitable to face large competition, small the project potential contract,limited market space; The complete equipment sales (“line”), the competitive environment improves, thecompetitive pressure decreases, the market space increases, and the potential contract amount is enlarged;The overall solution of intelligent manufacturing (“whole”), limited competitors, strong competitiveness,market space and potential contract amount is expected to expand for several times.
Take the (high temperature) operation robot for sub-merged arc furnace as an example, the urgent demandfor safety production and replacing labors for traditional calcium carbide sub-merged arc furnace industry,based on the industrial robot technology, the Company successfully developed and applied (high temperature)sub-merged arc furnace operation robot which replaces manual work in dangerous and harsh environmentsfor calcium carbide which has epoch-making significance to traditional production (“point”), andsuccessively developed ramming robot for calcium carbide, patrolling robot, intelligent pot transfertechnology and other key production system (“line”), until forming science and technology innovationability of an intelligent workshop overall solution that subverts the traditional production operations of theindustry (“whole”), realizing few men, unmanned factories and intelligent manufacturing.
(6) Based on the technological breakthroughs and accumulation of technology in a certain field,cross-industry “re-development” and “re-application” accelerate the Company’s core competitiveness.
Based on the technological breakthrough and technology accumulation in the direction of special operationrobots in calcium carbide high-temperature operation environment, the Company has carried out horizontalredevelopment for high temperature furnace operation environments of multiple submerged arc furnace, suchas ferrosilicon, silicon manganese, industrial silicon, etc., also has achieved stage-by-stage application resultsand has signed orders for the products one after another. In the future, the Company can redevelop andreapply the technology formed in the overall solution of the intelligent factory of calcium carbide submergedarc furnace to the field of submerged arc furnace mentioned above, accelerate the enhancement of theCompany’s core competitiveness.
Legend：The product atlas of special operation robot in high temperature environment
(7) Smart workshops, smart factories, and overall solutions further enhance the Company’scompetitive advantages.
The Company applies intelligent technologies such as visual recognition, deep learning, robot controlalgorithm, and expert control strategy, combined with industrial Internet communication technology, to theoverall solution of intelligent workshops and smart factories, in order to achieve the minimum number ofpeople and unmanned workshops, relying on intelligent production decision-making management, to helpcustomers produce safely and efficiently, and promote the upgrading of intelligent manufacturing industry inrelated industries.
At present, the Company is actively implementing the carbide finished product post-processing smart factorycontract and smart workshop project signed with Inner Mongolia Junzheng Chemical Co., Ltd. and Ningxia
Younglight Chemicals Co., Ltd., with a total value of about RMB 360 million. If the projects are successfullyaccepted and delivered in 2024, this typical application of this new type of productivity, firstly, therealization of high-tech products to replace the dangerous, harsh, heavy working conditions of manual work,promote the change of production methods, improve the safety of workers and well-being, is of greatsignificance to the calcium carbide industry, it is an innovative application that overturns the traditional wayof craftsmanship; Secondly, the overall market space of the smart factory theoretically expected to formseveral times, ten times the potential market demand of the original high-temperature furnace operation robot.“whole” which is the ability of the overall smart factory solution, determines whether the Company cangain a greater competitive advantage in the future market competition.
Legend：Calcium carbide production intelligent workshop to achieve few people, unmanned production operations
(8) Brand competitiveness
The Company builds brand with quality, seeks progress with technology, and wins trust with service.Through high-quality products and efficient services, we strive to realize production automation, digitizationand intelligent manufacturing for customers. The Company’s brand enjoys a constant leading in popularity,high reputation and customer loyalty in the main domestic product application fields. The Company pursuesexcellence, leads the development of intelligent manufacturing equipment in the application industry andbuilds up a stable, cooperative and win-win customer base for a long time. High-quality customer resourcesand huge potential demand for intelligent manufacturing equipment is the source of the Company’ssustainable and rapid development.
(9) Achievements in intellectual property, proprietary technology and software copyright.
During the reporting period, the Company obtained 50 patents approved by the State Intellectual PropertyOffice, including 8 invention patents and 42 utility model patents; 15 software copyrights are approved bythe National Copyright Administration. In addition to patent technology, the Company has a considerableamount of core technical know-how that exists in the form of proprietary technology by relying onconfidentiality measures. The patents, proprietary technology and software copyright owned and mastered bythe Company is the Company’s significant core competitiveness. (Note: The amount of intellectual propertyacquired during the reporting period may have a slight deviation due to the limitation of statistical timepoints, and is only for investors’ trend reference.)
(10) Social and economic benefits
The transformation of traditional industries with high technology is the responsibility and mission given totechnological innovation enterprises by the era. The Company’s overall solution of intelligent manufacturingin the field of calcium carbide submerged arc furnace can be widely used in intelligent manufacturingequipment such as automatic loading logistics system in many industries, have transformative impact onreplacing manual operations in high-risk or heavy manual working conditions to achieve safe production andimprove production efficiency. Meanwhile, standardized intelligent equipment operations improve thecapacity utilization rate, reduce costs and enhance efficiency of the enterprise, and support the earlyrealization of the national double carbons goal.
The Company actively develops new quality productivity, the ability of large-scale intelligent manufacturingequipment and intelligent factory technology can provide one-stop solution to save more resources andrealize safe and efficient production for the customers, fundamentally solve the problem of structural laborgap for customers and promote the improvement of social production efficiency. The application of thesehigh-tech products not only achieves good social benefits, but also brings considerable economic benefits tothe Company at the same time.
4. Main Businesses Analysis
(1) Overview
In 2023, facing the insufficient growth momentum external environment and unfavorable demand in theworld economy, China actively responded to the complex and volatile international political and economicsituation, gave full play to its own advantages, and the economy continued to rebound steadily. The statevigorously advocates the development of new quality productivity, promote the construction of modernizedindustrial system, accelerate the cultivation and growth of strategic emerging industries, and promote thedevelopment of the digital economy and the advanced manufacturing industry, the deep integration ofmodern service industry. The Company’s intelligent manufacturing equipment products are widely used inmany head customers of petrochemical and chemical industry, sub-merged arc furnace, new energy, food,animal feeds, building materials, medicine, food, port and other pillar industries of the national economy. Inthe future, the demand for industrial digitalization, intelligence, and equipment renewal in these fields isoptimistic for a long time, providing the company with a stage for sustained and rapid development.
During the reporting period, driven by the two core growth businesses of intelligent manufacturingequipment and industrial services, the Company’s revenue and profit hit a new high. In 2023, the Companyrealized operating revenue of RMB 2.565 billion, with a year-on-year growth of 19.11%; Net profitattributable to the parent company amounted to RMB 534 million, with a year-on-year growth of 19.90%;The Company’s weighted average return on equity (ROE) was 16.22%. The Company faces the future needsof the industry, increases R&D inputs, enhance competitiveness, R&D investment of RMB146 million in thereporting period, an increase of 22.91% year-on-year, R&D expenses accounted for 5.69% of operatingrevenue. From the composition of operating revenue, the operating revenue of intelligent manufacturingequipment and industrial services occupy 68.40% and 27.95% of total revenue, 75.37% and 18.56% ofoverall gross profit respectively. Thanks to R&D path of “point → line → whole” in recent years, the
Company achieved good performance in the reporting period, realized multi-category expansion in products,continuous expansion in the application market, substantial increase in demand of intelligent manufacturingequipment, continuous improvements of industrial service.
Operating revenue Gross profit(RMB 0.1 billion) (RMB 0.1 billion)
Note: in the above figure, Contributing Gross profit= Operating revenue of corresponding business – Operating cost, the contributiongross profit does not consider the impact of profit and loss of minority shareholders.
During the reporting period, the main operating data and main financial indicators realized by the Companyare listed as follows
Unit：RMB
| Item | 2023 | 2022 | Year-on-year growth | |
| Operating revenue | 2,565,408,783.42 | 2,153,746,152.69 | 19.11% | |
| Operating profit | 633,603,259.16 | 514,097,879.71 | 23.25% | |
Total profit
| Total profit | 638,059,931.66 | 512,038,672.63 | 24.61% |
| Net profit | 552,949,392.85 | 447,751,710.09 | 23.49% |
There of: Attributable to shareholders of theparent company
| There of: Attributable to shareholders of the parent company | 533,591,213.86 | 445,041,007.98 | 19.90% |
(2) Operating revenue and cost of sales
① Breakdown of operating revenue
Unit：RMB
| 2023 | 2022 | Increase/Decrease over the same period of previous year | |||
| Amount | Proportion of revenue | Amount | Proportion of revenue | ||
| Total | 2,565,408,783.42 | 100% | 2,153,746,152.69 | 100% | 19.11% |
| Categorized by industry | |||||
| Intelligent manufacturing equipment | 1,754,845,282.12 | 68.40% | 1,418,872,768.27 | 65.88% | 23.68% |
| Industrial service | 717,017,884.35 | 27.95% | 639,013,258.02 | 29.67% | 12.21% |
| Environmental protection process and equipment | 93,545,616.95 | 3.65% | 95,860,126.40 | 4.45% | -2.41% |
| Categorized by product | |||||
| Post-processing intelligent manufacturing equipment for solid material | 1,372,204,429.15 | 53.49% | 944,248,796.84 | 43.84% | 45.32% |
| Intelligent logistics, warehousing systems | 175,413,133.94 | 6.84% | 57,275,871.17 | 2.66% | 206.26% |
| Robots plus | 134,576,925.32 | 5.25% | 195,549,679.66 | 9.08% | -31.18% |
| Post-processing intelligent manufacturing equipment for rubber | 72,650,793.71 | 2.83% | 221,798,420.60 | 10.30% | -67.24% |
| Operation, maintenance and after-sales type industrial services | 606,991,420.18 | 23.66% | 530,485,359.25 | 24.63% | 14.42% |
| Supplementary industrial services and others | 110,026,464.17 | 4.29% | 108,527,898.77 | 5.04% | 1.38% |
| Environmental process and complete equipment | 93,545,616.95 | 3.64% | 95,860,126.40 | 4.45% | -2.41% |
| Categorized by region | |||||
| Region of east China | 896,345,862.84 | 34.94% | 880,640,289.07 | 40.89% | 1.78% |
| Region of south China | 300,459,581.67 | 11.71% | 116,994,995.52 | 5.43% | 156.81% |
| Region of central China | 68,220,171.50 | 2.66% | 50,027,352.95 | 2.32% | 36.37% |
| Region of north China | 400,478,345.88 | 15.61% | 337,846,315.45 | 15.69% | 18.54% |
| Region of northwest China | 530,568,521.70 | 20.68% | 505,048,427.65 | 23.45% | 5.05% |
| Region of southwest China | 130,943,956.98 | 5.10% | 94,240,219.62 | 4.38% | 38.95% |
| Region of northeast China | 226,113,529.63 | 8.81% | 155,254,832.09 | 7.21% | 45.64% |
| Overseas | 12,278,813.22 | 0.49% | 13,693,720.34 | 0.63% | -10.33% |
| Categorized by sales model | |||||
| Direct sales | 2,565,408,783.42 | 100.00% | 2,153,746,152.69 | 100.00% | 19.11% |
②Industries, products, regions or distribution model accounting for more than 10% of company revenue oroperating profit.
Unit：RMB
| Operating revenue | Cost of sales | Gross profit margin | Operating revenue increase/ decrease over the same period of previous year | Cost of sales increased or decreased over the same period of previous year | Gross profit margin increased or decreased over the same period of previous year | |
| Categorized by industry | ||||||
| Intelligent manufacturing equipment | 1,754,845,282.12 | 1,046,300,125.32 | 40.38% | 23.68% | 22.96% | 0.35% |
| Industrial service | 717,017,884.35 | 542,516,401.53 | 24.34% | 12.21% | 15.36% | -2.06% |
| Environmental protection process and equipment | 93,545,616.95 | 36,498,530.27 | 60.98% | -2.41% | 2.90% | -2.02% |
| Categorized by product | ||||||
| Post-processing intelligent manufacturing equipment for solid material | 1,372,204,429.15 | 775,899,381.34 | 43.46% | 45.32% | 30.83% | 6.27% |
| Intelligent logistics, warehousing systems | 175,413,133.94 | 144,686,023.91 | 17.52% | 206.26% | 235.45% | -7.17% |
| Robots plus | 134,576,925.32 | 79,797,554.14 | 40.70% | -31.18% | -24.92% | -4.95% |
| Post-processing intelligent manufacturing equipment for rubber | 72,650,793.71 | 45,917,165.93 | 36.80% | -67.24% | -57.68% | -14.28% |
| Operation, maintenance and after-sales type industrial services | 606,991,420.18 | 443,169,450.42 | 26.99% | 14.42% | 18.22% | -2.35% |
| Supplementary industrial services and others | 110,026,464.17 | 99,346,951.11 | 9.71% | 1.38% | 4.12% | -2.37% |
| Environmental process and complete equipment | 93,545,616.95 | 36,498,530.27 | 60.98% | -2.41% | 2.90% | -2.02% |
| Categorized by region | ||||||
| Region of east China | 896,345,862.84 | 580,630,231.88 | 35.22% | 1.78% | 10.79% | -5.27% |
| Region of south China | 300,459,581.67 | 173,522,594.83 | 42.25% | 156.81% | 132.52% | 6.04% |
| Region of central China | 68,220,171.50 | 51,977,927.58 | 23.81% | 36.37% | 82.15% | -19.15% |
| Region of north China | 400,478,345.88 | 251,268,258.81 | 37.26% | 18.54% | 17.26% | 0.68% |
| Region of northwest China | 530,568,521.70 | 345,045,172.71 | 34.97% | 5.05% | -1.86% | 4.58% |
| Region of southwest China | 130,943,956.98 | 76,349,052.27 | 41.69% | 38.95% | 22.36% | 7.90% |
| Region of northeast China | 226,113,529.63 | 139,553,180.12 | 38.28% | 45.64% | 51.41% | -2.35% |
| Overseas | 12,278,813.22 | 6,968,638.93 | 43.25% | -10.33% | -23.19% | 9.50% |
| Categorized by sales model | ||||||
| Direct sales | 2,565,408,783.42 | 1,625,315,057.12 | 36.64% | 19.11% | 19.80% | -0.37% |
Where the Company’s statistical criteria for core business data are adjusted during the reporting period, thecore business data for the most recent year have been adjusted based on the statistical criteria effective as ofthe end of the reporting period.
□Applicable √Not applicable
During the reporting period, the reasons of operating revenue and gross profit rate change are as follows:
During the reporting period, the Company’s two core growth business, intelligent manufacturing equipmentand industrial services, whose revenue realized a year-on-year growth of 23.68% and 12.21% respectively,operating revenue of RMB 1.755 billion and RMB 717 million respectively, both hit the best level in history.The revenue of environmental process and complete equipment was close to the previous year, occupied
3.65% of overall revenue, the gross profit rate continued to maintain a high level of 60.98%, whichornamented the overall performance.
Intelligent manufacturing equipment:
Post-processing intelligent manufacturing equipment for solid material: Due to the centralized delivery andrevenue recognition of the post-processing intelligent manufacturing equipment for powder and granulerepresented by FFS (form-fill-seal full-automatic packaging equipment) and post-processing intelligentequipment for polysilicon. The operating revenue of post-processing intelligent manufacturing equipmentfor solid material increased significantly by 45.32% year-on-year, reached RMB 1.372 billion. Thisoperating revenue level is close to the overall revenue scale of intelligent manufacturing equipment in 2022;Benefited from the year-on-year improvement of the profit level of post-processing intelligentmanufacturing equipment for powder and granule and post-processing intelligent equipment for polysilicon,as well as the performance and delivery and revenue recognition of high gross profit rate contract orders, thegross profit of post-processing intelligent manufacturing equipment for solid material was 43.46%, anincrease of 6.27% year-on-year, which was a new high in recent years and reflected the core competitivenessof the Company’s products.
Intelligent logistics, warehousing systems: Due to the centralized delivery and revenue recognition, duringthe reporting period, the operating revenue increased sharply by 206.26% year-on-year, realized operatingrevenue of RMB175 million, exceeded RMB 100 million for the first time. Due to some of projects revenueconfirmed in the current period executed longer and expenditures increased due to improvement, the directcost of the project was higher, and the gross profit rate was only 17.52%. From the perspective of the marketcompetition pattern, the gross profit rate of the intelligent logistics and warehousing system in the next twoyears is expected about 20-30%.
Robots plus: Affected by the reduction of installation of (High temperature) operation robot for submergedarc furnace and two projects of calcium carbide smart factory has not confirmed, the operating revenue wasRMB 135 million, decreased 31.18% year-on-year; The gross profit rate also declined, but the overall levelremained at a good level of 40.70%.
Post-processing intelligent manufacturing equipment for rubber: The delivery and acceptance decreasedduring the reporting period, and the operating revenue was RMB 73 million, decreased 67.24% year-on-year;The gross profit rate of projects confirmed was lower in the current period, with an average of 36.80%;
In summary, during the reporting period, the overall performance of the Company’s intelligentmanufacturing equipment was outstanding, the Company achieved revenue of RMB 1.755 billion, and thegross profit rate increased to 40.38%, in 2024, there is still room for better performance.
Industrial services: Industrial services continued growing this period, the operating revenue of this kind wasRMB 717 million, an increase of 12.21% year-on-year, and closed to the Company’s overall revenue level in2017. Affected by the centralized maintenance of some production operation and maintenance integrationprojects and the negative factors of service performance cost fluctuations, the gross profit rate of industrialservices was under pressure to 24.34%, which was higher than that of medium-term. Compared with China’shuge capacity scale, production operation and maintenance integration potential market, the Company’sindustrial service business has a long-term development space in the direction of the integration of modernservice industry and advanced manufacturing industry, which is actively advocated by the state.
Environmental process and complete equipment: During the reporting period, the revenue of this kind wasRMB 94 million, and the gross profit rate was maintained at an excellent level of 60.98%, contributingnearly RMB 20 million to the net profit attributable to parent company’s shareholders, which constituted abeneficial supplement to the Company’s overall performance.
From the region perspective, based on the Company’s business model, the operating revenue usually variesfrom period to period, which is mainly affected by demand fluctuations from region to region and structuralchanges of product demand, as well as Company response demands, completion of product delivery andacceptance progress, etc. It is not a typical fluctuation of gross profit rate divided by region, please refer toexplanation of operating revenue and gross profit rate changes for details.
(3) Cash Flows
Unit: RMB
| Item | 2023 | 2022 | Change (%) |
| Sub-total of cash inflows from operating activities | 2,417,361,797.41 | 2,519,478,243.51 | -4.05% |
| Sub-total of cash outflows from operating activities | 2,278,419,139.40 | 2,067,946,277.31 | 10.18% |
| Net cash flows from operating activities | 138,942,658.01 | 451,531,966.20 | -69.23% |
| Sub-total of cash inflows from investing activities | 5,636,466,482.27 | 2,476,439,835.45 | 127.60% |
| Sub-total of cash outflows from investing activities | 5,808,835,108.54 | 2,751,087,752.50 | 111.15% |
| Net cash flows from investing activities | -172,368,626.27 | -274,647,917.05 | 37.24% |
| Sub-total of cash inflows from financing activities | 33,120,286.94 | 493,090,000.00 | -93.28% |
| Sub-total of cash outflows from financing activities | 327,086,068.16 | 309,612,826.81 | 5.64% |
| Net cash flows from financing activities | -293,965,781.22 | 183,477,173.19 | -260.22% |
| Net increase in cash and cash equivalents | -326,267,521.07 | 366,262,667.59 | -189.08% |
Explanation of why any of the data above varies significantly:
√Applicable □Not applicable
①Net cash flows from operating activities during the current period decreased by 69.23% compared with thesame period of last year, mainly due to the performance of contracts and the increase of operating cashoutflow from production inputs and procurement during the reporting period, at the same time, contractpayments received from customers decreased year-on-year.
②Net cash flows from investing activities for the current period increased by 37.24% compared to the sameperiod last year, mainly due to the impact of cash management activities;
③Net cash flows from financing activities in the current period decreased by 260.22% compared with thesame period last year, mainly due to the arrival of funds raised by the Company’s issuance of convertiblecorporate bonds in the previous period;
④The net increase in cash and cash equivalents for the current period was -326.2675 million, a decrease of
189.08% year-on-year, which was jointly affected by the net cash flow from operating activities, investmentactivities and financing activities.
Explanation of why net cash flows from operating activities vary significantly from net profit for thereporting period:
√Applicable □Not applicable
The difference between the net cash flows from operating activities during the reporting period and the netprofit in the current year was RMB 414 million, mainly due to the following reasons: The impact of contractperformance, the Company prepared for production, production input, procurement and other operating cashoutflows increased, while the contract money received from the customers decreased year-on-year.
5. Analysis of Assets and Liabilities
(1)Significant Changes in Asset Composition
Unit: RMB
| Dec 31, 2023 | Jan 1, 2023 | Increase/ Decrease in proportion | Major changes | |||
| Amount | Proportion of total asset | Amount | Proportion of total asset | |||
| Cash at bank and on hand | 332,216,413.35 | 5.00% | 659,606,109.17 | 10.60% | -5.60% | Mainly due to the impact on cash management activities. |
| Accounts receivable | 1,004,337,478.08 | 15.11% | 856,529,854.29 | 13.77% | 1.34% | ? Due to the increase in operating revenue. |
| Contract assets | 119,436,138.29 | 1.80% | 124,651,440.99 | 2.00% | -0.20% | |
| Inventories | 2,405,309,228.52 | 36.18% | 1,912,047,999.38 | 30.74% | 5.44% | In order to fulfill the contract, increased production organization inputs, and the scale of inventory. |
| Investment properties | 11,771,642.38 | 0.18% | 6,373,135.42 | 0.10% | 0.08% | Due to the increase in renting out the real estate which vacant temporarily. |
| Long-term equity investments | 404,005,942.77 | 6.08% | 397,830,998.40 | 6.40% | -0.32% | |
| Fixed assets | 229,647,272.08 | 3.45% | 192,561,428.46 | 3.10% | 0.35% | |
| Construction in progress | 74,985,542.78 | 1.13% | 27,241,137.26 | 0.44% | 0.69% | Capital construction investment. |
| Right-of-use assets | 4,912,571.51 | 0.07% | 2,349,347.56 | 0.04% | 0.03% | Due to the increase in the lease of factory of subsidiaries. |
| Short-term borrowings | 23,872,075.01 | 0.36% | 31,830,000.00 | 0.51% | -0.15% | |
| Contract liabilities | 1,763,411,436.97 | 26.52% | 1,725,223,007.33 | 27.74% | -1.22% | |
| Leased liabilities | 1,374,283.98 | 0.02% | 0.00% | 0.02% | Due to the increase in the lease of factory of subsidiaries this period. | |
Assets overseas account for a relatively high proportion.
□Applicable √Not applicable
(2) Assets and liabilities measured at fair value
Unit: RMB
| Item | Opening balance | Profit or loss from change in fair value during the period | Cumulative fair value change charged to equity | Amount provided for impairment in the period | Purchased in the period | Sold in the period | Other changes | Closing balance |
| Financial assets | ||||||||
| Financial asset held for trading (excluding derivative financial )） | 1,268,124,738.43 | 8,454,005.90 | 17,408,744.33 | 3,077,230,000.00 | 3,551,560,000.00 | 802,248,744.33 | ||
| Investments in other equity instruments | 57,477,364.10 | -1,045,306.70 | 28,905,741.40 | 988,328.83 | 55,443,728.57 | |||
| Financing receivables | 111,064,333.27 | -38,531,072.90 | 72,533,260.37 | |||||
| Sub-total of the above | 1,436,666,435.80 | 7,408,699.20 | 46,314,485.73 | 3,077,230,000.00 | 3,552,548,328.83 | -38,531,072.90 | 930,225,733.27 | |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Note: the financial asset held for trading above-mentioned are monetary fund and structural bankdeposits, for cash management of temporarily unused self-owned and raised funds, based on theresolution of the Board of Directors and the Board of Shareholders.
Whether there were any material changes on the measurement attributes of major assets of the companyduring the reporting period
□ Yes √ No
(3)Restricted asset rights as of the end of this Reporting Period
| Item | Book value at the end of period（RMB） | Limitation reason |
| Cash at bank and on hand | 1,883,408.27 | Bank deposit held on letter of guarantee. |
| Cash at bank and on hand | 7,300.00 | Minimum deposit of ETC toll bank account. |
| Intangible assets | 4,392,605.67 | Land use right used for mortgaged bank loans of holding subsidiary. |
| Fixed assets | 12,955,232.75 | Real estate is used as collateral for bank loans of holding subsidiary. |
| Total | 19,238,546.69 |
6. Investment Made
(1)Total investment amount
√Applicable □Not applicable
| Total investment amount of the Reporting Period (RMB) | Total investment amount of the same period of last year (RMB) | Change |
| 404,005,942.77 | 397,830,998.40 | 1.55% |
The investments above are all investments made by the Company in associates or joint ventures.
(2)Significant equity investment made in the reporting period
□Applicable √Not applicable
(3)Significant non-equity investments ongoing in the reporting period
□Applicable √Not applicable
(4)Financial investments
①Securities investments
□Applicable √Not applicable
No such cases in the reporting period.
②Derivatives investments
□Applicable √Not applicable
No such cases in the reporting period.
(5) Use of Raised Funds
① Overall usage of funds raised
Unit: RMB’0,000
| Year | Way of raising | Total funds raised | Net funds raised | Total funds used in the Current Period | Accumulative fund used | Total funds with usage changed | Accumulative funds with usage changed | Proportion of accumulative funds with usage changed | Total unused funds | The usage and destination of unused funds | Amount of funds raised idle for over two years | |
| 2022 | Issuance of convertible corporate bonds | 45,000 | 44,341.86 | 12,380.35 | 30,459.20 | 0 | 0 | 0.00% | 14,596.96 | The Company should conduct special account management and cash management for the funds not yet used. | 0 | |
| Total | -- | 45,000 | 44,341.86 | 12,380.35 | 30,459.20 | 0 | 0 | 0.00% | 14,596.96 | -- | 0 | |
| Explanation of overall usage of funds raised | ||||||||||||
| As of December 31st, 2023, the Company raised fund has used a total amount of RMB 304.592 million (excluding the deducted issuance expenses of RMB 6.5814 million), and the raised funds has not used of RMB 145.9696 million (including income from the cash management of the raised fund RMB 7.143 million.) | ||||||||||||
② Commitment projects of fund raised
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the reporting period | Accumulative investment amount as of the period-end (2) | Investment schedule as the period-end (3)＝ (2)/(1) | Date of reaching intended use of the project |
| 1.Robot and intelligent factory industrialization production project. | 16,000. | 16,000 | 6,425.31 | 7,926.29 | 49.54% | September 30th,2024 |
| 2. Sub-merged arc furnace smelting robot and its intelligent factory R & D demonstration project. | 9,000 | 9,000 | 3,307.53 | 6,150.47 | 68.34% | June 30th,2025 |
| 3.Project of technology innovation and service center (R&D center) | 7,000 | 7,000 | 2,647.51 | 4,040.58 | 57.72% | November 30th,2023 |
| 4.Supplementary working capital | 12,341.86 | 12,341.86 | 0 | 12,341.86 | 100.00% | Not applicable |
| Total | 44,341.86 | 44,341.86 | 12,380.35 | 30,459.2 | -- | -- |
③ Re-purposed raised funds
□Applicable √Not applicable
No such cases in the reporting period.
(6) Related investment progress
① Investment in high-end medical diagnosis and treatment equipment
Celiac minimally invasive surgical robot: The celiac minimally invasive surgical robot project of Harbin SiZhe Rui Smart Medical Equipment Co., Ltd., which is invested and participated by the Company, at the endof reporting period, holds 13.46% of its equity. Electric endoscopic needle forceps (name of registrationcertificate) has been approved in January, 2021 for medical device registration certificate issued by the StateDrug Administration; The intraperitoneal endoscopic surgical system (name of registration certificate) hasobtained medical device registration certificate issued by the State Drug Administration in June, 2022.
Image-guided radiotherapy precise positioning: The image-guided radiotherapy precise positioning project ofJiangsu Rayer Medical Technology Co., Ltd., invested by the Company, at the end of reporting period, holdsits 14.04% equity. The project obtained the registration certificate of IGPS-O, IGPS-V image-guidedradiotherapy positioning system issued by the State Food and Drug Administration in March 2016. InFebruary 2020, the Optical Guidance Tracking System (OGTS) has obtained medical device registrationcertificate issued by the State Drug Administration
Remote assisted minimally invasive pedicle implantation robot: the remote assisted minimally invasivepedicle implantation robot project of Suzhou Zoezen Robot Co., Ltd., invested and participated by thewholly-owned subsidiary of the Company, at the end of reporting period, the Company holds 5.98% of itsequity. The main R&D product of the project, navigation and positioning equipment for spinal surgery hasobtained medical device registration certificate issued by the State Drug Administration in February, 2022.
The field of high-end medical diagnosis and treatment equipment project is characterized by longresearch and development cycle, high barriers to enter, long product registration cycle, and bigclinical risks. There are many risk factors that cannot be determined during type testing and clinicaltrials. For the registered projects, there is also a risk whether the promotion and industrialization canmeet the expectation. Hereby, investors are advised to carefully evaluate the relevant risk factors.
② Progress of the robot equity investment fund
In 2015, the Company participated in the establishment of Dongguan Boshi Ruidexin Robot EquityInvestment Fund, and established Dongguan Boshi Ruidexin Robot Equity Investment Center (limitedpartnership). The total investment of Boshi was RMB 60 million, accounting for 30% of the subscribedinvestment of the fund. By the end of the reporting period, Boshi had received more than RMB 60 million ofproject investment returns and profit distribution, the earnings are good.
③The Progress of enterprises invested by the Company declare to IPO
Shanghai Bloom Technology Co., Ltd., which is invested by the Company, was listed on the main board ofShanghai Stock Exchange on January 10
th, 2024, with the stock abbreviation: Bloom Technology, stock code:
603325. The total share capital of Bloom Technology after the initial public offering is 66,670,000 shares.The Company, as a non-controlling shareholder, holds 14.40% of the total share capital of BloomTechnology after the initial public offering.
Harbin Sizherui Intelligent Medical Equipment Co., Ltd, which is invested by the Company, currently has aregistered capital of RMB 150 million, the Company holds 13.46% of its equity and is a non-controllingshareholder. In June 2023, the application for initial public offering of shares and listing on the science andtechnology innovation board was approved by the Listing Review Committee of the Shanghai StockExchange, and it needs to be registered with the China Securities Regulatory Commission before it can startthe follow-up work of the IPO.
V. The Company’s Outlook for Future Development
1. Developing new productivity and actively laying out future industries.
The essence of new quality productivity is advanced productivity, which is led by innovation, free from thetraditional mode of economic growth and productivity development path, characterized by high technology,high efficiency and high quality, and in line with the new development concept. The new quality ofproductive forces is generated by revolutionary breakthroughs in technology, innovative allocation ofproduction factors, and in-depth transformation and upgrading of industries. China has the comprehensiveadvantages of a complete industrial system, a large industrial scale, and rich application scenarios, whichprovide a rich soil for future industrial development. Efforts will be made to develop future manufacturing,realize intelligent manufacturing, break through key core technologies such as humanoid robots, andstrengthen future high-end equipment in the face of the country’s major strategic needs and the people’sneeds for a better life.
The development of new quality productivity coincides with the Company’s efforts to promote theintegration of advanced manufacturing and information technology, and empower the digital, intelligent andgreen development of manufacturing in recent years. In the application field of intelligent manufacturingequipment, the Company has realized the stage and capability of spanning from single machine andautomated production line to digital workshop, intelligent factory and overall solutions. The Company willapply cutting-edge technologies such as machine vision recognition, force sensing technology, deep learning,robot control algorithm, and expert control strategy, combined with 5G and industrial Internetcommunication technology, to digital workshop, intelligent factory and overall solutions, scientific,optimization, innovation and transformation of traditional production processes and methods, to achieve asignificant increase in total factor productivity, to help users to achieve high quality, efficient and greenproduction.
In the new round of scientific and technological revolution and industrial transformation to accelerate theevolution of the opportunity, major cutting-edge technologies and disruptive technologies continue to emerge,scientific and technological innovation and industrial development integration is deepening, vigorouslycultivating future industries has become a strategic choice to lead scientific and technological progress, driveindustrial upgrading, open up a new track, and shape new quality productivity. As a leading technologyenterprise in the early independent R&D and application of industrial robot technology, and the deepapplication of special robots in multi-field sub-merged arc furnace, the Company signed the StrategicCooperation Framework Agreement with HIT on August 18
th
, 2023, in the face of the humanoid robot, atypical symbol of the future industry of new quality productivity. Jointly set up a humanoid robot keytechnology and principle prototype industrialization R&D project, the future principle prototype will faceapplication scenarios, continuous progress and iteration, and ultimately committed to the commercialapplication of general artificial intelligence humanoid robots. The Company will actively continue to furtherpromote this strategic development direction.
2. Focus on the intelligent manufacturing industry direction
“Manufacturing is the main body of the national economy, the foundation of building the country, the
instrument of rejuvenating the country and the foundation of strengthening the country”, “The 14
thFive-YearPlan” Intelligent Manufacturing Development Plan, the“14
th
Five-Year Plan” Robot Industry Developmentand Plan Implementation Plan of the “robot plus” Application Action have set China’s industrial planninggoals by 2025 and 2035. Manufacturing enterprises have broad space for digital, networked and intelligentproduction, and the robot industry is also facing unprecedented vigorous development opportunities.Since the foundation of the Company in 1997, the Company has been committed to the revitalization anddevelopment of the national equipment industry for a long period. The Company successfully developed thehandling robot in the early stage of its establishment, and realized the industrial application as early as2005.The Company has applied industrial robot technology to the field of industrial automation. TheCompany has independent intellectual property rights of the complete intelligent equipment products tomake positive contributions for the large-scale industrial production of customers and the localization ofmajor equipment in the main application fields. The Company’s products successfully replacing importedproducts have realized the independent, controllable, efficient, safe and reliable operation of China’s majorequipment industry. Over the years, the Company’s products are widely used in many industries, has becomethe first choice of backbone enterprises in the industry.
Entering the 21
stcentury, especially in recent years, a new round of scientific and technological revolutionand industrial transformation has occurred rapidly. 5G communication network, industrial Internetinformation technology, new materials, big data, cloud computing, deep learning, artificial intelligence andother digital technologies have advanced by leaps and bounds, which provide reliable technical support andthe possibility of scale application for the Company to accelerate the development of products from“automation” to “digital” and “intelligent”. The Company grasps the opportunity of the times, integratesadvanced manufacturing and information technology, and enables the digital, intelligent and greendevelopment of manufacturing industry. In recent years, the Company’s main products have realized theexpansion from intelligent manufacturing equipment to the digital workshop and intelligent factory, openingthe ceiling of the industry growth, marketing work has repeatedly achieved the good results, and theCompany’s intelligent manufacturing equipment business has great potential.
Looking forward to the future, the Company will adhere to the market demand oriented, drive technologyleading by innovation, ensure the core technology security with independent and controllable means,integrate with social resources, accelerate the Company’s R&D in intelligent manufacturing equipment andexpand industrial service business; Replace manual operation under high-risk and heavy environment, realizeintelligent manufacturing production requirement of fewer people, unmanned, safe, efficient andenvironmental in intelligent equipment application scenarios , drive labor production civilization progress;Contribute to society, return for shareholders, bring well-being for employees, and strive to achieve good andrapid development of the Company.
In the direction of focused development in the field of intelligent manufacturing equipment, theCompany actively carried out the R&D, application and promotion of new technologies and products.The following areas will become the power engine that will continue to drive the synergisticdevelopment of the Company’s various businesses.
(1) Digital intelligent manufacturing equipment based on 5G and industrial Internet technology
China is a major manufacturing country, and high-quality industrial development is imminent. Changing the
development mode, optimizing the economic structure and transforming the growth drivers have entered acritical period. China has the comprehensive advantages of a complete industrial system, a large industrialscale, and rich application scenarios, which provide a rich soil for the development of new qualityproductivity. With years of technical accumulation and industrial practical experience in the field oflarge-scale intelligent manufacturing equipment, the Company focuses on the following areas, empoweringcustomers to accelerate intelligent manufacturing.
① Overall solution of post-processing intelligent manufacturing equipment for solid material.
Legend: Schematic diagram for overall solution of post-processing intelligent manufacturing equipment for solid material
The overall solution of post-processing intelligent manufacturing for solid material includes weighing,packaging, palletizing, film hooding, digital outbound & inbound, intelligent loading, and control system andother modules for general and sub-unit operation management, can be widely used in the post-processingapplication scenarios of powdery materials, granular materials and irregular materials (such aspolycrystalline silicon raw materials in the new energy industry), and help the intelligent and efficientproduction and digital upgrading of relevant industries.
② Overall solution of intelligent factory.
Legend: Schematic diagram for overall solution of intelligent factories
Legend: Digital workshop network system diagram
The overall solution of intelligent factory, using multi-disciplinary technology, with intelligent productionmanagement decision-making system as the core control unit, helps customers’ digital transformation,realizes fewer people, unmanned factories, improves the level and efficiency of intelligent manufacturing,and achieves scientific, independent, economic, safe, efficient, green production progress.
③Intelligent manufacturing equipment and intelligent plant solutions covering all categories ofpolysilicon.
Solar energy is a clean, safe and reliable source of energy that can be used for grid-connected powergeneration as well as stored in a variety of ways, such as through energy storage and hydrogen production,and can theoretically almost stably meet China’s future energy needs. In the past two years, geo-militaryconflicts in Europe have led to tensions in energy supply, and the advantages of distributed solar photovoltaicpower generation have emerged, and solar energy has developed into an important part of the future energystrategy of some countries. China is full of light, the distribution of light energy resources is more uniform,the State has formulated a “Carbon peak and Carbon neutral” dual carbon strategy, for the photovoltaicindustry to provide a broad space for development. In the huge demand expectation, in recent years, China’sphotovoltaic industry polysilicon raw materials field ushered in large-scale expansion, with intelligentequipment to improve production efficiency is the industry preferred choice.
Since 2019, the industry’s first block polysilicon packaging equipment products developed by the Companyhave been synchronously applied to the production field of Daqo Energy and new special energy polysiliconraw materials, the Company has continued to increase R&D inputs, and has formed a series of products witha variety of unit combinations such as gross weight, net weight, prefabricated bag and FFS homemade bag inblock monocrystalline silicon, block polysilicon and granular polysilicon within multiple plates. TheCompany combines the unit system equipment products with the reduction of silicon rod crushing, screeningmagnetic separation, AGV directional transportation, measurement and plastic packaging, factory logisticsand other processes, through digitalization and information enabling, has the ability of crystal silicon smartfactory overall solution. The Company has extensive cooperation with GCL Group, Tongwei Group,Yongxiang Shares, Daqo Energy, Xinte Energy, Asia Silicon,, Tianhong Ruike, Qinghai Lihao, Runyang
Shares, Baofeng Energy, Hongyuan Energy, Xinjiang Qiya, Eastern Hope, Red Lion Semiconductor andmany other domestic new energy enterprises, the Company’s competitiveness is outstanding in this field.
Legend: Schematic diagram for intelligent manufacturing equipment and intelligent plant solutions coveringall categories of polysilicon.
(2) “Robot plus” -manual substitution under high-risk, heavy and harsh working environment.
In January 2023, the Ministry of Industry and Information Technology, 17 departments jointly issued theImplementation Plan of the “Robot Plus” Application Action. According to the plan, by 2025, the density ofmanufacturing robots will double compared with 2020, the application depth and breadth of service robotsand special robots will be significantly improved, and the ability of robots to promote high-quality economicand social development will be significantly enhanced. The State will focuse on the top 10 key applicationareas led by the manufacturing industry, break through more than 100 kinds of robot innovative applicationtechnologies and solutions, promote more than 200 typical robot application scenarios with high technicallevel, innovative application mode and significant application results, and create a number of “robot plus”application benchmarking enterprises.
Under the environment of high risk, heavy and harsh working conditions, the hidden trouble of safetyproduction is large. Under the impact of the digital economy model in the service industry, there is astructural supply and demand dislocation in human resources, and employment problems raised bymanufacturing enterprises. Enterprises in the industry are limited by outdated technology, manual production,and they are generally faced with difficult problems such as high safety production cost, low degree ofoperation standardization, unstable product quality, high operation risks and insufficient capacity utilizationrate. The Company’s high-temperature special operation robots represented by sub-merged arc robots,tamping robots and inspection robots and scale applications in the direction of intelligent factories for thepost-processing of calcium carbide sub-merged arc furnace, etc., can effectively solve the pain points of theindustry and achieve scientific and technological empowerment.
① Calcium carbide high temperature special operation robot plus
Legend: Schematic diagram of Sub-merged arc robot and tamping robot replacing manual operation replacing manual operation
The application effect of the Company’s self-innovated and developed (high temperature) operation robotand its peripheral system in the field of sub-merged arc furnace of calcium carbide is remarkable, It can solvemany pain points that cannot be solved by manual operation in traditional discharging link completely, torealize fewer people, unmanned, safe, efficient, environmental intelligent manufacturing productionrequirements, truly realize the transformation of traditional industries with high-technology, and drive theindustrial upgrading of intelligent manufacturing.
② Post-processing intelligent factory for calcium carbide sub-merged arc furnace
Legend: Few people on the production site and unmanned of calcium carbide sub-merged arc furnaceintelligent factory during implementation of the project
During the reporting period, in the direction of electric stone furnace smart factory, the company activelyimplemented and signed intelligent factory/workshop contracts for calcium carbide finished productpost-processing with Inner Mongolia Junzheng Chemical Co., Ltd. and Ningxia Yingli Chemical Co., LTD.,with a total contract value of about RMB 360 million. At present, the project has realized ignition operationand is progressing smoothly. This is the first domestic innovative application of replacing the original manualwork process with the new quality productivity in the field of calcium carbide production, which greatlyrealizes the production and operation of fewer people, unmanned, digital and intelligent production andoperation. It is the technological change of transforming the traditional industry with advanced productivityand changing the production and life by science and technology, as well as the epoch-making innovativepractice of liberating the productive forces and improving the well-being of the workers’ safety production.
Technology enterprises are given by the mission of change, in this application field, the Company has greatpotential in the future.
③“Special operation robot plus” facing other high temperature operation environment of sub-mergedarc furnace.
Based on the successful development of high-temperature special operation robots in the field of calciumcarbide sub-merged arc furnace and the application of intelligent factory technology, the Company hascontinued to research and develop high-temperature special operation robots and other intelligent equipmentfor the field of sub-merged arc furnace such as ferrosilicon, silicon manganese, and industrial siliconfurnaces. The Company has made the following positive progress and has successively achieved milestones.
Ferrosilicon sub-merged arc furnace field: Ferrosilicon disk casting system has entered the subsequentmarket promotion stage, and small-batch orders have been signed, meanwhile got positive feedback from thedemand field; Ferrosilicon high-temperature special operation (out of the furnace) robots, has started theR&D of new models.
Silicon manganese sub-merged arc furnace field: Following the completion of customer acceptance and ofthe first silicon manganese high-temperature special operation furnace robot the R&D of the new version ofthe silicon manganese furnace robot with more advantageous has made positive progress.
Industrial silicon sub-merged arc furnace field: After customer’s test and acceptance of the first industrialsilicon high-temperature special operations discharging robot, currently, the series of products have beensuccessively promoted and applied to improve the cost-effective at the same time to provide customers withmore application options.
“High temperature calcium carbide sub-merged arc robot→ calcium carbide tamping robot→ calciuminspection robot→ post-processing intelligent workshop for calcium carbide finished products.” This courseof technological progress has opened the ceiling of industry growth while realizing the transformation oftraditional industries with high-tech products. Similarly, the R&D path of “high temperature environment ofcalcium carbide sub-merged arc furnace → high temperature furnace robots of silicon manganese,
ferrosilicon and industrial silicon furnace”, realize R&D, demonstration and promotion and application of“robot plus” better.
④Overall solution of plant intelligent logistics
Legend: Partial photos for automatic vehicle loading system
The Company’s intelligent logistics system takes the automatic loading system as the core unit, with thevisual identification system, data Information interface system, logistics dispatching system, transfer systemand the like as the auxiliary, carries on the logistic operation of batch transportation, the stacking, the split,the combination, the loading and the like to many kinds of bags, boxes, bulk materials and so on. Overallsolution of intelligent logistics, to achieve seamless connection between production lines or warehouses andtransport vehicles, can be widely used in many fields of national economy, which is helpful for customers toconcentrate resources, improve their logistics automation ability, improve production efficiency and releaseproduction potential. Advantages are more obvious under the conditions of labor shortage and in poorworking conditions, etc., and customers’ feedback and market development continue to improve.
(3) Industrial service of intelligent equipment and “industrial service plus”
The Company’s the integrated business strategy of products and service, which is formulated andimplemented predictably, has achieved remarkable results. The Company’s intelligent manufacturingequipment and industrial services have developed into an important source of revenue and profit for theCompany. Intelligent equipment industrial service is the national key support to encourage the modernservice industry. In March 2021, the National Development and Reform Commission, Ministry of Scienceand Technology, Ministry of Industry and Information Technology,etc. totaling thirteen departments jointlyissued Opinions on Accelerating the High-quality Development of the Manufacturing and Service Industry.From the strategic planning level, the State put forward that by 2025, the manufacturing service industry willplay a significantly enhanced role in improving the quality, benefit, innovation ability and resourceallocation efficiency of the manufacturing industry, play a more prominent supporting and leading role in thehigh-quality development of the manufacturing industry, and realize the coupling symbiosis and integration
and development of the manufacturing industry and the manufacturing service industry.
On the one hand, industrial service revenue will increase with the growth of sales and production operationbase of intelligent manufacturing equipment; On the other hand, the Company will accelerate incrementaluplift of service revenue after undertaking new large-scale production and operation and maintenance serviceprojects. The Company’s industrial service business responds positively to customers’ deep-level serviceneeds, which will bring continuous, long-term and steady growth of the overall industrial service revenuescale. The Company’s integrated industrial services and intelligent manufacturing equipment sales form abenign interaction, promote each other, enhance customer loyalty, and effectively extend the industrial chain.During the reporting period, the Company’s industrial service revenue reached RMB 717 million, comparedwith the Company’s huge potential customer scale in China, the penetration rate of production integrationoperation services is still very low, and the future growth potential is huge.
The Company actively strives to complete the national task of “Pilot unit for integrated development ofadvanced manufacturing and modern service industry”, explores new models and new paths, accumulatesexperience, and promotes the rapid development of “integration of two industries” in China withperformance.
The Company’s industrial services have covered all regions except Hong Kong, Macau, Taiwan and Tibet,with an industrial service network and industrial service capacity of more than 3,000 service personnel. Atpresent, the Company’s industrial service network mainly serves the Company’s product customers. Whilecontributing considerable revenue and profits to the Company, the commercial value of the Company’sindustrial service network resources is paid attention by industry enterprise groups. The Company’sindustrial service network and service capability, have the possibility to undertake industrial service businessopportunities other than the Company’s products to achieve the “industrial service plus”, the future is worthexpecting.
3.Business Outlook in 2024
Since 2017, the Company has continued to increase inputs in R&D, achieved multi-category expansion ofproducts, and expanded the market application field; The Company strengthens the construction of industrialservice network, and continuously improves the service capacity; The Company actively develops newquality productivity, and has made great progress in the direction of digitalization and intelligence; Also haswell cultivated and developed the intelligent manufacturing equipment market, leading the market demand,and the Company’s operating performance has shown sustained good and rapid growth, its operating revenuehas steadily stood on the level of RMB 1 billion, 1.5 billion, 2 billion and 2.5 billion, showing desirableprofitability.
Looking forward to 2024, the Company in the direction of industrial digitalization, based on the existingmarket demand for intelligent manufacturing equipment and industrial services, superimposed the favorablefactors of the national Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods forNew Ones, combined with the scale of orders in hand, the Company has the foundation, ability andconfidence to achieve growth in business performance.
4.Possible Risks in the Company’s Operations
(1) The risk that the R&D of intelligent manufacturing equipment and industrialization process areless than expected.
The Company has the capability to provide customers with overall solutions of intelligent manufacturing inthe main equipment application field of complete large scale intelligent equipment. “Manufacturing is themain body of the national economy, the foundation of building the country, the instrument of rejuvenatingthe country and the foundation of strengthening the country.” China is undergoing a “transformation from bigmanufacturing country to powerful manufacturing country”, and the demand for digital and intelligentworkshop is on the rise. “ Intelligent Manufacturing Development Plan of the 14
thFive-year Plan” clearlyexpresses “In the 14
thFive-year Plan and for a long period in the future, the promotion of intelligentmanufacturing should be based on the essence of manufacturing, closely follow the characteristics ofintelligence, take process equipment as the core, take data as the basis, rely on manufacturing units,workshops, factories and supply chains and other carriers to promote the digital transformation ofmanufacturing industry, network coordination and intelligent transformation. By 2025, most manufacturingenterprises above designated size will realize digital networking, and backbone enterprises in key industrieswill initially apply intelligence; By 2035, manufacturing enterprises above designated size will fullypopularize digital networking, and backbone enterprises in key industries will basically realize intelligence.”In the face of huge industrial digitization market prospect, if the Company cannot expand the applicationfield of new technology in time, lead, guide and respond to the market demand in product development, orthe industrialization process is less than expected, the Company may miss demand bonus, which will bringan adverse impact on the medium- and long-term development of the Company and become one of the riskfactors faced by the Company.
(2) The risk that 5G-based industrial internet and artificial intelligence technology cannot be deeplyapplied in the Company’s overall solution of intelligent manufacturing.
Industrial Internet technology and the digital infrastructure built by 5G etc., in the field of intelligentmanufacturing provide technical convenience for the digitization and intelligence of factories; Theapplication level of artificial intelligence technology determines the ability of intelligent manufacturing inthe future. At present, the Company has outstanding competitive advantages in the field of productapplication, but if the artificial intelligence technology based on 5G and industrial Internet cannot be deeplyintegrated and applied in intelligent manufacturing product technology solutions in the future, it will restrictthe speed and quality of the Company’s medium and long-term development, constituting one of the riskfactors.
(3) The risk that “robot plus” and China intelligent equipment demand is less than expected.
In recent years, the State has intensively issued the 2025 and 2035 China intelligent manufacturing industrydevelopment planning goals and robot plus application action implementation plan. As the dominantenterprise, the Company represents the domestic leading level in the field of product application, and someproduct applications are leading in the world. The national intelligent manufacturing industry related planwill take the lead to implement in the backbone enterprises in the industry. The Company’s products coverthe top customers in the application field. The Company will face many development opportunities in the
future. However, global inflation remains high, trade protection is still severe, world economic and tradegrowth is weak, and domestic demand needs to be boosted urgently. These factors or other unforeseen factorsare not excluded, which will affect China’s future demand for high-end intelligent manufacturing equipmentand constitute one of the risk factors restricting the Company’s medium and long-term performance.
(4) The risk that “industrial services plus” expand less than expected.
Industrial service is the buffer and booster of the Company’s revenue and profit growth. Over the years, theCompany’s industrial service business has continued to grow steadily, during the reporting period, therevenue has exceeded RMB 700 million. In terms of the number of potential target customers and room forgrowth in the industrial services production operation and maintenance business, it is still at a lowpenetration level compared with the Company’s target customer service base, and has good developmentexpectations in the future. However, if the Company cannot continue to develop this business direction,industrial service plus expansion is less than expected, which will form one of the risk factors restricting theCompany’s medium and long-term development.
(5) In the face of the new opportunities of “robots plus”, there may be risks in developing newindustrial directions.
As early as 2005, the Company’s independent intellectual property rights of industrial robots on the customersite successfully applied, the Company continues to industrial robot perception technology, controltechnology, decision-making technology applied to the Company’s large-scale intelligent equipment, in thefield of engagement, is in long-term technology leading advantage. In recent years, the Company’s hasachieved good results in first high temperature special operation robot in the field of calcium carbide furnaceR&D, application and industrialization, the Company is actively implementing the demonstration project ofthe overall solution of smart factory in this field. At the same time, the Company actively develops specialoperation robots for high temperature environment such as ferrosilicon, silicon manganese and industrialsilicon sub-merged arc furnace, and has successively succeeded in pilot tests and obtained small batch orders.However, with the rapid development of artificial intelligence technology at present, represented byhumanoid robots, which are intelligent, quick, skillful and multi-scenario applied, explain the morefar-reaching connotation and development space of robots plus. “Robot is the pearl at the top of the crown ofthe manufacturing industry”, if the Company cannot continue to make progress in the field of robot plus andaccelerate the promotion of technical achievements in new areas to expand the market, it is one of riskfactors affecting the medium to long-term competitiveness of the Company.
(6) The risk that the R&D of humanoid robots less than expected.
In the new round of scientific and technological revolution and industrial change to accelerate the evolutionof major cutting-edge technologies, disruptive technologies continue to emerge, the Company as intelligentmanufacturing equipment, high temperature special operation robots in the field of product application of theleader, optimistic about the field of humanoid robots major development opportunities, humanoid robots asone of the Company’s important strategic R&D directions. On August 18
th, 2023, the Company signed aStrategic Cooperation Framework Agreement with HIT to jointly establish a humanoid robot key technologyand principle prototype industrialization R&D project, and jointly promote the industrialization of relatedtechnological achievements and products. The future industry of humanoid robots is driven by cutting-edge
technologies, and the relevant R&D industrialization investment is inevitably accompanied by greaterrisks.The field of humanoid robots, different from the Company’s intelligent manufacturing equipment,high-temperature furnace operation robots and other industrial fields, is a new, cutting-edge, highlychallenging field of technological innovation, therefore, so there is uncertainty about future success. Incooperation with HIT, the Company has complementary advantages, multi-disciplinary crossover andmulti-department participation, which is systematic, complex, phased and long-term. Whether and when theexpected results can be achieved in R&D is highly uncertain, which constitutes one of the risk factors. In theimplementation process, whether the phased results can meet the expectations, whether it has the advancedlevel, and whether there is market demand, there is a great uncertainty, which constitutes one of the riskfactors; In the process of implementation, even if there are expected R&D results, there is great uncertaintyabout whether industrialization can be smoothly carried out in the future, whether industrialization hascomprehensive advantages, and whether it can quickly obtain market share, which constitutes one of the riskfactors. The implementation of the project has long-term characteristics and cannot have a positive impact onthe Company’s financial data in the short term. In the specific process of promotion, there are unforeseenfactors that will affect the progress of R&D and the transformation of results and constitute one of the riskfactors. Due to the pioneering nature of the project, it will be subject to the limitations of the industry and thescientific and technological level of the industry. If there are key technologies yet to be improved in theindustry as a whole, it will affect the R&D progress or industrialization process and constitute one of the riskfactors. Considering the above risks, it is inevitable that in the implementation process of humanoid robotprojects, there are still other unforeseen risk factors, which constitute one of the risk factors that the companyneeds to face.
(7) The risk of technology confidentiality and unfair competition.
Technology leading is one of the important competitive strategies and competitive advantages of theCompany. The technology leading advantage of the products directly affects whether the Company’sproducts can maintain a high level of sustainable profitability and the effective implementation of theCompany’s differentiated competitive strategy. The Company attaches great importance to technologyconfidentiality by applying for intellectual property protection, strengthening legal rights protection, andprotecting the Technology security of enterprises and preventing related risks through technical means.Nevertheless, there are still intellectual property rights owned by the Company illegally stolen, and otherrisks of unfair competition, which may cause potential economic losses to the Company.
VI. Financial statements
(1) Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB
| Item | Dec 31, 2023 | Jan 1, 2023 |
| Current assets: | ||
| Cash at bank and on hand | 332,216,413.35 | 659,606,109.17 |
| Financial assets held for trading | 802,248,744.33 | 1,268,124,738.43 |
| Derivative financial assets | ||
| Bills receivable | 273,519,045.87 | 307,322,625.28 |
| Accounts receivable | 1,004,337,478.08 | 856,529,854.29 |
| Financing receivables | 72,533,260.37 | 111,064,333.27 |
| Prepayments | 77,455,740.98 | 139,594,005.25 |
| Other receivables | 30,774,548.13 | 29,316,161.67 |
| Thereof: Interest receivable | ||
| Dividend receivable | 2,601,281.28 | 2,601,281.28 |
| Inventories | 2,405,309,228.52 | 1,912,047,999.38 |
| Contract assets | 119,436,138.29 | 124,651,440.99 |
| Assets held for sale | ||
| Non-current assets due within one year | 4,434,380.89 | |
| Other current assets | 615,166,444.19 | 8,781,928.47 |
| Total current assets | 5,737,431,423.00 | 5,417,039,196.20 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 16,425,314.82 | |
| Long-term equity investments | 404,005,942.77 | 397,830,998.40 |
| Other equity instruments investments | 55,443,728.57 | 57,477,364.10 |
| Other non-current financial assets | ||
| Investment properties | 11,771,642.38 | 6,373,135.42 |
| Fixed assets | 229,647,272.08 | 192,561,428.46 |
| Construction in progress | 74,985,542.78 | 27,241,137.26 |
| Productive biological assets |
| Oil and gas assets | ||
| Right-of-use assets | 4,912,571.51 | 2,349,347.56 |
| Intangible assets | 53,974,953.86 | 57,090,300.02 |
| Development costs | ||
| Goodwill | 401,878.10 | 1,120,909.26 |
| Long-term deferred expenses | 106,486.62 | 84,955.75 |
| Deferred tax assets | 36,471,682.14 | 40,346,163.61 |
| Other non-current assets | 23,114,349.36 | 20,759,073.65 |
| Total non-current assets | 911,261,364.99 | 803,234,813.49 |
| Total assets | 6,648,692,787.99 | 6,220,274,009.69 |
| Current liabilities: | ||
| Short-term loans | 23,872,075.01 | 31,830,000.00 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Bills payable | ||
| Accounts payable | 337,812,103.72 | 227,581,839.47 |
| Advances from customers | 96,750.00 | 96,750.00 |
| Contract liabilities | 1,763,411,436.97 | 1,725,223,007.33 |
| Employee benefits payable | 76,649,155.81 | 70,475,565.86 |
| Taxes payable | 20,117,689.42 | 54,028,725.59 |
| Other payables | 30,001,942.32 | 3,035,031.46 |
| Thereof: Interest payable | ||
| Dividend payable | 24,500,000.00 | |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 2,470,313.79 | 2,097,594.87 |
| Other current liabilities | 163,555,006.18 | 119,463,543.08 |
| Total current liabilities | 2,417,986,473.22 | 2,233,832,057.66 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | 431,953,084.05 | 415,824,511.11 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Lease liabilities | 1,374,283.98 | |
| Long-term payable |
| Long-term employee benefits payable | ||
| Provisions | 7,137,432.08 | 5,195,263.40 |
| Deferred income | 4,023,518.90 | 4,781,549.13 |
| Deferred tax liabilities | 16,429,627.86 | 14,379,548.84 |
| Other non-current liabilities | 172,145,404.60 | 199,568,192.56 |
| Total non-current liabilities | 633,063,351.47 | 639,749,065.04 |
| Total liabilities | 3,051,049,824.69 | 2,873,581,122.70 |
| Shareholders’ equity： | ||
| Share capital | 1,022,556,602.00 | 1,022,550,000.00 |
| Other equity instruments | 32,096,067.08 | 32,103,507.97 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Capital reserve | 236,467,353.62 | 226,083,353.77 |
| Less: treasury shares | 8,865,506.80 | |
| Other comprehensive income | 22,252,223.39 | 22,852,245.26 |
| Specific reserve | 28,883,002.75 | 29,243,725.77 |
| Surplus reserve | 355,000,124.41 | 300,521,872.89 |
| General risk reserve | ||
| Retained earnings | 1,761,948,265.24 | 1,536,228,275.48 |
| Total equity attributable to shareholders of the parent company | 3,450,338,131.69 | 3,169,582,981.14 |
| Minority shareholder equity | 147,304,831.61 | 177,109,905.85 |
| Total shareholders’ equity | 3,597,642,963.30 | 3,346,692,886.99 |
| Total liabilities and shareholders’ equity | 6,648,692,787.99 | 6,220,274,009.69 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2) Balance Sheet of Parent Company
Unit: RMB
| Item | Dec 31, 2023 | Jan 1, 2023 |
| Current assets: | ||
| Cash at bank and on hand | 169,835,957.63 | 558,638,558.10 |
| Financial assets held for trading | 705,945,509.61 | 1,067,854,254.08 |
| Derivative financial assets | ||
| Bills receivable | 243,137,102.77 | 247,221,244.29 |
| Accounts receivable | 928,973,179.55 | 799,216,696.68 |
| Financing receivables | 27,958,555.18 | 89,925,115.89 |
| Prepayments | 69,555,358.51 | 110,843,454.45 |
| Other receivables | 75,073,941.10 | 22,537,149.02 |
| Thereof: Interest receivable | ||
| Dividend receivable | 52,839,189.55 | 2,601,281.28 |
| Inventories | 2,111,364,564.22 | 1,594,443,554.27 |
| Contract assets | 114,524,287.72 | 123,540,319.09 |
| Assets held for sale | ||
| Non-current assets due within one year | 4,434,380.89 | |
| Other current assets | 607,681,665.24 | 14,227,088.07 |
| Total current assets | 5,058,484,502.42 | 4,628,447,433.94 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 16,425,314.82 | |
| Long-term equity investments | 749,170,942.77 | 740,518,264.70 |
| Other equity instruments investments | 24,231,515.74 | 27,117,364.10 |
| Other non-current financial assets | ||
| Investment properties | 5,791,346.16 | |
| Fixed assets | 191,493,021.03 | 152,430,504.15 |
| Construction in progress | 21,429,854.11 | |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 441,271.74 | |
| Intangible assets | 37,370,956.92 | 37,605,591.40 |
| Development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 106,486.62 | 84,955.75 |
| Deferred tax assets | 30,148,563.57 | 24,156,362.90 |
| Other non-current assets | 20,618,931.75 | 11,463,555.05 |
| Total non-current assets | 1,075,357,079.38 | 1,015,247,723.90 |
| Total assets | 6,133,841,581.80 | 5,643,695,157.84 |
| Current liabilities: | ||
| Short-term loans | 3,872,075.01 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Bills payable | ||
| Accounts payable | 500,594,175.64 | 264,814,384.36 |
| Advances from customers | 0.00 | |
| Contract liabilities | 1,502,597,287.71 | 1,571,364,637.48 |
| Employee benefits payable | 53,301,214.79 | 48,097,569.96 |
| Taxes payable | 13,220,192.52 | 37,236,011.40 |
| Other payables | 12,339,507.40 | 7,650,725.57 |
| Thereof: Interest payable | ||
| Dividend payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 620,757.74 | 802,551.69 |
| Other current liabilities | 149,242,100.10 | 104,756,129.31 |
| Total current liabilities | 2,235,787,310.91 | 2,034,722,009.77 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | 431,953,084.05 | 415,824,511.11 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employee benefits payable | ||
| Provisions | 6,115,243.65 | 4,667,743.14 |
| Deferred income | 4,023,518.90 | 4,781,549.13 |
| Deferred tax liabilities | 8,658,825.27 | 7,781,001.35 |
| Other non-current liabilities | 101,331,890.97 | 117,066,270.00 |
| Total non-current liabilities | 552,082,562.84 | 550,121,074.73 |
| Total liabilities | 2,787,869,873.75 | 2,584,843,084.50 |
| Shareholders’ equity： | ||
| Share capital | 1,022,556,602.00 | 1,022,550,000.00 |
| Other equity instruments | 32,096,067.08 | 32,103,507.97 |
| Thereof: Preference shares | ||
| Perpetual debts |
| Capital reserve | 235,710,594.29 | 225,950,067.05 |
| Less: treasury shares | 8,865,506.80 | |
| Other comprehensive income | 5,996,554.15 | 7,976,982.26 |
| Specific reserve | 23,403,880.47 | 24,341,652.67 |
| Surplus reserve | 355,000,124.41 | 300,521,872.89 |
| Retained earnings | 1,680,073,392.45 | 1,445,407,990.50 |
| Total shareholders’ equity | 3,345,971,708.05 | 3,058,852,073.34 |
| Total liabilities and shareholders’ equity | 6,133,841,581.80 | 5,643,695,157.84 |
(3) Consolidated Income Statement
Unit: RMB
| Item | 2023 | 2022 |
| 1. Total revenue | 2,565,408,783.42 | 2,153,746,152.69 |
| Thereof : Operating revenue | 2,565,408,783.42 | 2,153,746,152.69 |
| 2. Total cost | 2,015,413,207.79 | 1,692,891,233.52 |
| Thereof : cost of sales | 1,625,315,057.12 | 1,356,712,204.34 |
| Taxes and surcharges | 16,924,224.90 | 23,327,068.38 |
| Selling and distribution expenses | 128,475,705.01 | 94,505,120.53 |
| General and administrative expenses | 96,992,703.88 | 112,797,769.70 |
| Research and development expenses | 145,882,428.99 | 118,689,704.65 |
| Financial expenses | 1,823,087.89 | -13,140,634.08 |
| Thereof : Interest expenses | 11,405,000.23 | 4,058,577.85 |
| Interest income | 10,412,922.62 | 12,172,849.27 |
| Add: Other income | 85,643,578.27 | 62,253,301.72 |
| Investment income ("-" for losses) | 26,994,068.77 | 6,439,111.38 |
| Thereof: Income from investment in associates and joint ventures | 8,251,046.84 | 4,918,671.51 |
| Gain from derecognition of financial assets measured at amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging gains ("-" for losses) | ||
| Gains from changes in fair value ("-" for losses) | 11,606,250.52 | 5,644,531.71 |
| Credit impairment losses ("-" for losses) | -21,890,207.35 | -517,545.77 |
| Impairment losses ("-" for losses) | -18,740,330.69 | -20,456,984.96 |
| Gains from assets disposal ("-" for losses) | -5,675.99 | -119,453.54 |
| 3. Operating profit ("-" for losses) | 633,603,259.16 | 514,097,879.71 |
| Add: Non-operating income | 7,012,229.86 | 10,006.77 |
| Less: Non-operating expenses | 2,555,557.36 | 2,069,213.85 |
| 4. Profit before income tax ("-" for losses) | 638,059,931.66 | 512,038,672.63 |
| Less: Income tax expenses | 85,110,538.81 | 64,286,962.54 |
| 5. Net profit for the year ("-" for net losses) | 552,949,392.85 | 447,751,710.09 |
| (1) Classification according to operation continuity | ||
| Net profit from continuing operations(loss is stated with “-”) | 552,949,392.85 | 447,751,710.09 |
| Net profit from discontinued operations(loss is stated with “-”) | ||
| (2) Classified by ownership of the equity | ||
| Attributable to shareholders of the parent company | 533,591,213.86 | 445,041,007.98 |
| Minority interests | 19,358,178.99 | 2,710,702.11 |
| 6. Other comprehensive income, net of tax | 1,645,867.30 | 570,551.72 |
| Other comprehensive income attributable to shareholders of the Parent Company, net of tax | 1,645,867.30 | 1,568,830.37 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | 1,173,324.31 | 2,239,186.05 |
| 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 | 1,173,324.31 | 2,239,186.05 |
| 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 | 472,542.99 | -670,355.68 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss under the equity method | 472,542.99 | 368,669.04 |
| 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 | -1,039,024.72 |
| 7)Others | ||
| Other comprehensive income attributable to minority shareholders, net of tax | -998,278.65 | |
| 7. Total comprehensive income | 554,595,260.15 | 448,322,261.81 |
| Attributable to shareholders of the parent company | 535,237,081.16 | 446,609,838.35 |
| Minority interests | 19,358,178.99 | 1,712,423.46 |
| 8. Earnings per share | ||
| (1) Basic earnings per share | 0.5218 | 0.4352 |
| (2) Diluted earnings per share | 0.5190 | 0.4352 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(4)Income Statement of Parent Company
Unit: RMB
| Item | 2023 | 2022 |
| 1. Total revenue | 2,323,098,777.41 | 1,932,734,317.76 |
| Less: cost of sales | 1,502,368,407.41 | 1,234,004,746.10 |
| Taxes and surcharges | 11,332,635.40 | 19,866,883.67 |
| Selling and distribution expenses | 118,687,932.10 | 83,597,686.21 |
| General and administrative expenses | 71,949,853.74 | 66,493,794.43 |
| Research and development expenses | 119,748,592.86 | 93,261,725.64 |
| Financial expenses | 7,826,833.34 | -6,772,167.40 |
| Thereof : Interest expenses | 16,236,210.73 | 4,425,200.49 |
| Interest income | 10,197,233.72 | 12,013,931.84 |
| Add: Other income | 75,962,326.92 | 59,251,335.18 |
| Investment income ("-" for losses) | 79,672,868.99 | 19,273,052.93 |
| Thereof: Income from investment in associates and joint ventures | 8,251,046.84 | 4,918,671.51 |
| Gain from derecognition of financial assets measured at amortized cost | ||
| Net exposure hedging gains ("-" for losses) | ||
| Gains from changes in fair value ("-" for losses) | 10,150,247.04 | 5,290,952.07 |
| Credit impairment losses ("-" for losses) | -30,992,975.64 | 1,116,645.57 |
| Impairment losses ("-" for losses) | -19,356,941.41 | -10,042,924.16 |
| Gains from assets disposal ("-" for losses) | 182.60 | -154,906.34 |
| 2. Operating profit ("-" for losses) | 606,620,231.06 | 517,015,804.36 |
| Add: Non-operating income | 6,924,990.68 | 2.87 |
| Less: Non-operating expenses | 2,171,751.47 | 1,943,035.51 |
| 3. Profit before income tax ("-" for losses) | 611,373,470.27 | 515,072,771.72 |
| Less: Income tax expenses | 66,590,955.05 | 64,780,991.53 |
| 4. Net profit for the year ("-" for net losses) | 544,782,515.22 | 450,291,780.19 |
| Net profit from continuing operations (loss is stated with “-”) | 544,782,515.22 | 450,291,780.19 |
| Net profit from discontinued operations (loss is stated with “-”) | ||
| 5. Other comprehensive income, net of tax | -1,980,428.11 | 2,607,855.09 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | -2,452,971.10 | 2,239,186.05 |
| 1) Changes arising from remeasurement 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 | -2,452,971.10 | 2,239,186.05 |
| 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 | 472,542.99 | 368,669.04 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss under the equity method | 472,542.99 | 368,669.04 |
| 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 | ||
| 7)Others | ||
| 6. Total comprehensive income | 542,802,087.11 | 452,899,635.28 |
| 7. Earnings per share | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
(5) Consolidated Cash Flow Statement
Unit: RMB
| Item | 2023 | 2022 |
| 1. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 2,303,445,511.93 | 2,440,433,896.16 |
| Refund of taxes and surcharges | 74,693,918.54 | 47,645,190.27 |
| Other cash receipts relating to operating activities | 39,222,366.94 | 31,399,157.08 |
| Sub-total of cash inflows from operating activities | 2,417,361,797.41 | 2,519,478,243.51 |
| Cash paid for goods and services | 1,347,715,035.13 | 1,256,546,781.63 |
| Cash paid to employees and paid on behalf of employees | 513,230,975.10 | 442,729,532.89 |
| Payments of taxes and surcharges | 256,215,475.15 | 245,464,627.58 |
| Other cash payments relating to operating activities | 161,257,654.02 | 123,205,335.21 |
| Sub-total of cash outflows from operating activities | 2,278,419,139.40 | 2,067,946,277.31 |
| Net cash flows from operating activities | 138,942,658.01 | 451,531,966.20 |
| 2. Cash flows from investing activities | ||
| Cash received from withdrawing investments | 5,602,895,604.80 | 2,365,387,000.00 |
| Cash received from investment income | 31,519,842.45 | 31,586,059.33 |
| Net cash received from disposal of fixed assets, intangible assets and other long term assets | 239,456.02 | 132,632.26 |
| Net cash received from disposal of subsidiaries and other operating units | 78,281,750.36 | |
| Other cash receipts relating to investing activities | 1,811,579.00 | 1,052,393.50 |
| Sub-total of cash inflows from investing activities | 5,636,466,482.27 | 2,476,439,835.45 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 103,285,472.54 | 54,027,752.50 |
| Cash paid to acquire investments | 5,704,938,000.00 | 2,697,060,000.00 |
| Net increase of mortgaged loans | ||
| Net cash paid to acquire subsidiaries and other operating units | ||
| Other cash payments relating to investing activities | 611,636.00 | |
| Sub-total of cash outflows from investing activities | 5,808,835,108.54 | 2,751,087,752.50 |
| Net cash flows from investing activities | -172,368,626.27 | -274,647,917.05 |
| 3. Cash flows from financing activities | ||
| Cash received from capital contributions | 4,260,000.00 | 1,130,000.00 |
| Thereof: Cash received by subsidiaries from minority shareholders’ capital contributions | 4,260,000.00 | 1,130,000.00 |
| Cash received from borrowings | 28,860,286.94 | 490,760,000.00 |
| Other cash receipts from financing activities | 1,200,000.00 | |
| Sub-total of cash inflows from financing activities | 33,120,286.94 | 493,090,000.00 |
| Cash repayments of borrowings | 27,260,000.00 | 44,060,000.00 |
| Distribution of dividends or profits and payments for interest expenses | 260,107,071.13 | 256,689,520.45 |
| Thereof: Cash payments for dividends or profit to minority shareholders by subsidiaries | 2,450,000.00 | |
| Other cash payments relating to financing activities | 39,718,997.03 | 8,863,306.36 |
| Sub-total of cash outflows from financing activities | 327,086,068.16 | 309,612,826.81 |
| Net cash flows from financing activities | -293,965,781.22 | 183,477,173.19 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 1,124,228.41 | 5,901,445.25 |
| 5. Net increase in cash and cash equivalents | -326,267,521.07 | 366,262,667.59 |
| Add: Cash and cash equivalents at the beginning of period | 656,593,226.15 | 290,330,558.56 |
| 6. Cash and cash equivalents at the end of period | 330,325,705.08 | 656,593,226.15 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(6)Cash Flow Statement of Parent Company
Unit: RMB
| Item | 2023 | 2022 |
| 1. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 2,006,180,159.20 | 2,148,043,331.85 |
| Refund of taxes and surcharges | 68,873,667.90 | 43,162,727.79 |
| Other cash receipts relating to operating activities | 31,135,168.13 | 26,555,939.19 |
| Sub-total of cash inflows from operating activities | 2,106,188,995.23 | 2,217,761,998.83 |
| Cash paid for goods and services | 1,497,845,243.47 | 1,184,007,023.31 |
| Cash paid to employees and paid on behalf of employees | 197,427,939.12 | 209,365,212.27 |
| Payments of taxes and surcharges | 184,014,198.50 | 216,922,898.68 |
| Other cash payments relating to operating activities | 126,705,618.37 | 76,617,869.20 |
| Sub-total of cash outflows from operating activities | 2,005,992,999.46 | 1,686,913,003.46 |
| Net cash flows from operating activities | 100,195,995.77 | 530,848,995.37 |
| 2. Cash flows from investing activities | ||
| Cash received from withdrawing investments | 4,856,452,275.96 | 2,067,057,000.00 |
| Cash received from investment income | 30,136,048.51 | 31,324,837.21 |
| Net cash received from disposal of fixed assets, intangible assets and other long term assets | 189,889.53 | 318,432.26 |
| Net cash received from disposal of subsidiaries and other operating units | ||
| Other cash receipts relating to investing activities | 193,071.00 | 1,032,393.50 |
| Sub-total of cash inflows from investing activities | 4,886,971,285.00 | 2,099,732,662.97 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 39,437,083.81 | 29,466,374.75 |
| Cash paid to acquire investments | 5,071,758,000.00 | 2,463,800,000.00 |
| Net cash paid to acquire subsidiaries and other operating units | ||
| Other cash payments relating to investing activities | 2,741,636.00 | 2,800,000.00 |
| Sub-total of cash outflows from investing activities | 5,113,936,719.81 | 2,496,066,374.75 |
| Net cash flows from investing activities | -226,965,434.81 | -396,333,711.78 |
| 3. Cash flows from financing activities | ||
| Cash received from capital contributions | ||
| Cash received from borrowings | 3,930,286.94 | 455,000,000.00 |
| Other cash receipts from financing activities | ||
| Sub-total of cash inflows from financing activities | 3,930,286.94 | 455,000,000.00 |
| Cash repayments of borrowings | ||
| Distribution of dividends or profits and payments for interest expenses | 257,048,129.54 | 255,637,500.00 |
| Other cash payments relating to financing activities | 8,865,506.80 | 6,600,006.95 |
| Sub-total of cash outflows from financing activities | 265,913,636.34 | 262,237,506.95 |
| Net cash flows from financing activities | -261,983,349.40 | 192,762,493.05 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -50,312.03 | 11,761.60 |
| 5. Net increase in cash and cash equivalents | -388,803,100.47 | 327,289,538.24 |
| Add: Cash and cash equivalents at the beginning of period | 558,631,758.10 | 231,342,219.86 |
| 6. Cash and cash equivalents at the end of period | 169,828,657.63 | 558,631,758.10 |
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
April 27
th
, 2024