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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2024
（Abstract）Ⅰ. Important Notes
This Abstract is extracted from Annual Report 2024. 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 cninfo.com. The Company’s 2024 Annual Report is prepared and published inChinese version, and the English version is for reference only. Should there be any inconsistency betweenthe Chinese version and English 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 profit distribution plan approved by the thirteenth meeting of the fifth Board of Directors isas follows: based on the total share capital after the close of Shenzhen Stock Exchange on the shareregistration date determined by the Company’s 2024 annual profit distribution, cash dividend of RMB 2.50(including tax) will be paid to all shareholders for every 10 shares, and 0 shares of bonus shares (includingtax) will be given, and no accumulation fund will be converted into additional share capital.
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.
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.18, Hongxin Road, Huaqiao Town, Kunshan, Suzhou, JiangsuProvince. Welcome securities investors to inquire about the further information.
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
Unit: RMB
| As of Dec.31, 2024 | As of Dec.31, 2023 | Increase/decrease of 2024 over 2023 | As of Dec.31, 2022 | |
| Total assets | 6,955,348,945.64 | 6,648,692,787.99 | 4.61% | 6,220,274,009.69 |
| Total equity attributable to shareholders of the parent company | 3,790,432,312.96 | 3,450,338,131.69 | 9.86% | 3,169,582,981.14 |
| 2024 | 2023 | Increase/decrease of 2024 over 2023 | 2022 | |
| Operating Revenue | 2,862,689,438.16 | 2,565,408,783.42 | 11.59% | 2,153,746,152.69 |
| Net profit attributable to parent company’s shareholders | 524,225,526.98 | 533,591,213.86 | -1.76% | 445,041,007.98 |
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company | 493,358,983.81 | 485,726,824.70 | 1.57% | 414,145,809.23 |
| Net cash flow from operating activities | 643,842,979.01 | 138,942,658.01 | 363.39% | 451,531,966.20 |
| Basic earnings per share (RMB/share) | 0.5161 | 0.5218 | -1.09% | 0.4352 |
| Diluted earnings per share(RMB/share) | 0.5130 | 0.5190 | -1.16% | 0.4352 |
| Weighted average return on equity | 14.59% | 16.22% | -1.63% | 14.70% |
(2)Key accounting data by quarter
Unit: RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating revenue | 661,556,066.08 | 790,387,355.61 | 712,735,460.01 | 698,010,556.46 |
| Net profit attributable to parent company’s shareholders | 105,613,101.50 | 167,103,683.02 | 183,508,513.17 | 68,000,229.29 |
| Net profit after deducting non-recurring profit or loss attributable to shareholders of the parent company | 96,268,409.94 | 160,456,987.06 | 174,848,694.35 | 61,784,892.46 |
| Net cash flows from operating activities | -49,813,273.29 | 174,866,960.90 | 322,831,098.80 | 195,958,192.60 |
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 | 39,187 | Total number of shareholders of common stocks at previous | 54,978 | Total number of shareholders of preferred stock with resumed voting | 0 | Total number of shareholders of preferred stock with resumed voting rights at previous | 0 |
| period | month-end of this report’s disclosure | right at the end of the reporting period | month-end of this report’s disclosure | |||||||
| 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-Xinwo Venture Capital Management (Shanghai) Co., Ltd. - Lianchuang Weilai (Wuhan) Intelligent Manufacturing Industrial Investment Partnership (Limited Partnership) | Others | 14.20% | 145,176,676 | Not applicable | ||||||
| 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 | ||||||
| Cheng Fang | Domestic natural person | 1.42% | 14,512,996 | Not applicable | ||||||
| Tan Jianxun | Domestic natural person | 1.14% | 11,687,038 | Not applicable | ||||||
| Liu meixia | Domestic natural person | 1.04% | 10,639,500 | Not applicable | ||||||
| Wang Haocheng | Domestic natural person | 0.95% | 9,750,000 | Not applicable | ||||||
(2)The ownership and controlling relationship between the Company and its actual controller in formof diagram
4.Bonds
(1) Bond profile
| Bond name | Abbreviation | Bond code | Date of issue | Maturity | Balance (RMB’0,000) | Coupon rate |
Convertible
| Convertible | Boshi | 127072 | Sep. 22nd, 2022 | Sep. 21st, 2028 | 44,985.54 | 1st year 0.30% |
| Corporate Bonds of Harbin Boshi Automation Co., Ltd. | Convertible Bonds | 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 second year has been paid at par on Sep. 23rd, 2024. The interest is RMB 5.00 (inclusive of tax) for every 10 “Boshi Convertible Bonds”（Face value of RMB 1,000）. ② Claims registration date: Sep. 20th, 2024 ③ Ex-dividend date: Sep. 23rd, 2024 ④ Interest payment date: Sep. 23rd, 2024 |
(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 Merchants Bank Co., LTD-Boshi China Securities Convertible bonds and exchangeable bonds exchange-type open index securities Investment fund | Others | 219,982 | 21,998,200.00 | 4.89% |
| 2 | Guosen Securities Co., Ltd. | State-owned legal person | 198,059 | 19,805,900.00 | 4.40% |
| 3 | China Merchants Bank Co., LTD-Huabao convertible bond bond securities investment fund | Others | 188,620 | 18,862,000.00 | 4.19% |
| 4 | Southern Fund Ningkang convertible bond fixed income pension products - Bank of China Limited | Others | 188,589 | 18,858,900.00 | 4.19% |
| 5 | Industrial and Commercial Bank of China Limited - Sino-European Convertible Bond Securities Investment Fund | Others | 182,460 | 18,246,000.00 | 4.06% |
| 6 | Agricultural Bank of China Co., LtD-Penghua Convertible bond securities Investment fund | Others | 122,190 | 12,219,000.00 | 2.72% |
| 7 | Guohua Life Insurance Co., LTD. - Xingyi Tradition No. 1 | Others | 84,910 | 8,491,000.00 | 1.89% |
| 8 | Shenwan Hongyuan Securities Co. LTD | State-owned legal person | 82,740 | 8,274,000.00 | 1.84% |
| 9 | UBS AG | Overseas legal person | 66,100 | 6,610,000.00 | 1.47% |
| 10 | PICC Asset Management - China Merchants Bank - PICC Asset Ansheng Sheng 31 asset management product | Others | 62,640 | 6,264,000.00 | 1.39% |
(3) Latest rating and rating change
On June 24
th, 2024, China Lianhe Credit Rating Co., Ltd. issued the 2024 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.
Ⅲ.Important Issues
Shares Buyback
The Company held the sixth meeting of the fifth Board of Directors on November 1
s
, 2023, and deliberatedand passed the Proposal on the Plan to Buyback Part of the Company’s Shares. As of March 15
th, 2024, theCompany confirmed that this share repurchase program has been completed, and the Company has done7,203,019 shares buy-back of the Company in total, accounting for 0.70% of the total share capital of theCompany, 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).
Employee Stock Ownership Plan
The Company held the 11
thmeeting of the fifth Board of Directors and the eighth meeting of the fifth Boardof Supervisors on September 11
th
, 2024, to consider and pass the Motion on the Company’s 2024 EmployeeStock Ownership Plan (Draft) and Its Summary, the stock source of the employee stock ownership plan isthe A-share ordinary shares of Boshi Stock that have been bought back in the Company’s special securitiesaccount. The above proposal has considered and passed by the first Extraordinary General Meeting of 2024held on September 23
rd, 2024. On October 15
th, 2024, the non-trading transfer of the employee stockownership plan was completed. For details, please refer to the relevant announcements disclosed by theCompany in the Securities Times and cninfo.com.cn.
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 Company’s dual-core growth engine is driven by intelligent manufacturing equipment and industrialservices, which leverage the advantages of the equipment industry’s extension. These two sectorsrespectively align with the state-supported industrial directions of high-end equipment manufacturing andmodern service industries. According to the 2024 financial report data, the intelligent manufacturingequipment and industrial services, these two core growth businesses, accounted for 93% of the operatingrevenue. Additionally, environmental protection process and equipment contribute a beneficial supplement,generating 7% of the operating revenue. This forms a “core + supplement” revenue structure.
Intelligent Manufacturing Equipment：
As the main body of the national economy and the foundation of the powerful country, the intelligentupgrading of the manufacturing industry and the digital transformation of the industry has become one of thecore strategies of the national economic development. “Made in China 2025” puts forward intelligentmanufacturing is the main direction of the integration of informatization and industrialization. During the“14
th
Five-Year Plan” period, the state has successively issued more than ten special policies such as the“14
th
Five-Year Plan” for Intelligent Manufacturing Development, “Robot Plus” Application ActionImplementation Plan and Implementation Opinions on Promoting Future Industrial Innovation andDevelopment, and has systematically built a policy system of high-end equipment innovation anddevelopment - industrial digital transformation - future industrial forward-looking layout. Especially in thefield of intelligent manufacturing equipment, the policy focuses on supporting smart factory overall solutions,key common technology breakthroughs and industry demonstration applications, creating continuousdemand space and development opportunities for the industry.
Based on the Company’s extensive experience in the intelligent equipment industry, the current intelligenttransformation of China's manufacturing sector exhibits a dual-track parallel trend. On the one hand, theadoption rate of automation equipment in industrial enterprises of a certain scale is notably high. However,the number of digital factories that have achieved equipment networking and data integration is relativelylimited. Moreover, the proportion of smart factories capable of intelligent decision-making remains lower.Facing the future, these enterprises boast vast storage capacity, paving the way for digital transformation andintelligent upgrading. On the other hand, strategic emerging industries, exemplified by new energy and newmaterials, incorporate smart factory standards from the outset of construction, and the demand for freshcapacity keeps burgeoning. The intelligent upgrading of China’s manufacturing industry promotes the dualtrack of stock transformation and new capacity demand, showing strong resilience and vitality, and thedemand has not seen 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. The Company’sintelligent manufacturing equipment are widely applied in petrochemical, sub-merged arc furnace, newenergy, grain, animal feeds, building materials, medicine, food, port, and many other industries, to providecustomers with efficient intelligent manufacturing equipment, and promote the application andimplementation of the overall smart factory solution. In recent years, the State actively advocates theimplementation of industrial digitalization strategies. The Company has accelerated the accumulationapplication of digital and intelligent technologies mastered. Now it has the designing and implementationcapability of digital workshops，intelligent factories and overall solutions in multiple product applicationfields. The Company’s technology and intelligent equipment are in the leading position in the applicationfield of domestic industry, no competitors in the same scale; In some fields, the Company products andtechnology applications are in the world leading level.
The Company implements the differentiated competition strategy based on technology leadership, formingsignificant differences with competitors in technology R&D, product innovation, complete sets of advantagesof large systems, industrial service capabilities, engineering implementation experience, brand loyalty, etc.,and building comprehensive competitive advantages. In recent years, the Company’s intelligentmanufacturing equipment business has achieved sustained good and rapid development in terms of productinnovation, application field expansion, revenue scale and profit level, and has brought good returns toshareholders.
Industrial Service：
In March of 2021, thirteen government departments, including the National Development and ReformCommission, the Ministry of Science and Technology, and the Ministry of Industry and InformationTechnology, collectively released the Opinions on Accelerating the High-quality Development of theManufacturing Service Industry. This document unequivocally positions the manufacturing service industryas a pivotal cornerstone in enhancing the competitiveness and overall strength of manufactured goods,thereby facilitating the transformation and upgrade of the manufacturing sector and its journey towardshigh-quality development. Service-oriented manufacturing, an innovative endeavor heralding the profound
integration of manufacturing with services, stands not only as a crucial strategy in fostering a modernindustrial framework but also as a significant pathway in advancing the harmonized evolution of advancedmanufacturing and modern service industries.
At a practical level, manufacturing enterprises are expediting the transition from traditional manufacturingtowards a “manufacturing + service” model, and from offering single product delivery to providing “product+ service” solutions. This is achieved through innovation in business models, reconstruction of productionorganization systems, and an increase in the proportion of service elements. This transformation not onlyeffectively extends the value dimension of the industrial chain, but also significantly improves total factorproductivity and added value of products, injecting sustained momentum into the improvement of marketcompetitiveness.
Boshi has long been committed to the realm of intelligent manufacturing equipment, meticulously crafting acomprehensive production operation and maintenance management service system that spans the entirelifecycle of equipment products. This innovative approach empowers customers with holistic industrialservices encompassing equipment operation and maintenance, as well as finished product storage andtransportation. Consequently, clients can concentrate on their core competencies, thereby reducing costs,enhancing efficiency, and fostering high-quality development. In August of 2021, our Company wasdistinguished as the “Advanced Manufacturing and Modern Service Industry Integration Development PilotUnit” by the National Development and Reform Commission. Subsequently, in January 2023, we werehonored with the title of “Fourth Batch of Service-Oriented Manufacturing Demonstration Enterprise” by theMinistry of Industry and Information Technology. These dual national recognitions amply underscore ourCompany’s pioneering and leading role in the realm of manufacturing and service industry integration.
Based on continuous business innovation and industry-leading service delivery capabilities, the product andservice integration strategy implemented since the IPO in 2012 has achieved remarkable results. So far, it hasformed a service network covering all regions except Hong Kong, Macao, Taiwan and Tibet, and its servicescale and profitability rank at the forefront of the industry. The Company’s industrial service performancehas been escalating consistently year after year. In 2024, the Company’s industrial service revenue reached aremarkable RMB 768 million (7.18% increase year-on-year), contributing to 26.84% of the Company’soverall revenue. Moreover, the gross profit margin recovered to 29.62%. Industrial service is undoubtedly apivotal source of the Company’s revenue and profit, solidifying its position as a key contributor to theCompany’s financial success.
The Company’s industrial service demand is experiencing stable growth, driven by the natural expansion ofexisting stock equipment. Moreover, as new production, operation, and maintenance projects achievecontinuous breakthroughs through deep exploration of customer needs, new growth opportunities areemerging. The demand for industrial services is burgeoning in both directions, with development momentumaligning in a mutually reinforcing manner. Consequently, it is anticipated that the service scale and capacitywill undergo incremental advancements in the coming years.
Environmental Protection Process and Equipment:
“Lucid waters and lush mountains are invaluable treasures. A healthy ecological environment not onlyrepresents natural wealth but also signifies economic prosperity, influencing the potential and sustainability
of economic and social development.” The state has integrated green and low-carbon development into thecore strategy of high-quality development. In key areas such as deep treatment and recycling of industrialwaste gas, the treatment and recycling project of industrial waste acid and acid gas implemented by BoaoEnvironment, the Company’s holding subsidiary, can collect and treat waste sulfuric acid and sour gas inindustrial production, generate high-purity sulfuric acid for recycling production, and recover and reuse theheat energy released in the process. This not only achieves energy saving and emission reduction but alsorecycling and economic efficiency, balancing environmental protection with economic benefits and socialbenefits.
During the reporting period, with the centralized delivery and acceptance of the executed projects and therecognition of revenue, environmental protection technology and equipment achieved revenue of RMB 199million, which played a beneficial complementary role in the overall performance of the Company.
(2) Industry policy impact
In the context of the in-depth promotion of the national strategy of “manufacturing power”, the policies ofintelligent manufacturing, digital economy and industrial digital transformation and upgrading continue torelease the momentum of development. From 2023 to 2024, the intensive introduction of a number ofnational industrial policies has built a solid policy support system for the field of high-end intelligentmanufacturing equipment, enabling the development and industrial upgrading of enterprises in the industryin an all-round way from technological innovation, scene expansion to industrial ecological construction.
2023 industry policy:
The “Robot Plus” Application Action Implementation Plan explicitly outlines the objective of doubling therobot density in the manufacturing sector. This initiative is concentrated on ten key areas, with the aim ofcreating over 200 innovative application scenarios. The plan seeks to expedite the profound integration ofintelligent equipment with manufacturing processes.
The Petrochemical and Chemical Industry Steady Growth Work Plan strengthens the development of smartfactory construction standards, and promotes the intelligent upgrading of process industry through thecreation of smart manufacturing demonstration factories and the cultivation of industrial Internet platforms.
2024 new industry policy:
In January 2024, seven departments including the Ministry of Industry and Information Technology jointlyissued the Implementation Opinions on Promoting Future Industrial Innovation and Development. Theopinions anchor the direction of six future industries, including future manufacturing, future information,future materials, and future energy, and clarify the goal of forming 100 core technologies and 100 leadingenterprises by 2025. By 2027, the comprehensive strength of future industries will be significantly improvedand become an important source of future industries in the world. Among them, future manufacturing andother sectors are closely related to the company's intelligent equipment research and development andapplication.
In January 2024, nine departments including the Ministry of Industry and Information Technology jointlyissued the Work Plan for Digital Transformation of Raw Material Industry (2024-2026) and the Guidancefor the Implementation of Digital Transformation of Petrochemical and Chemical Industry, which clearlyexplained that petrochemical and chemical industry is an important pillar industry of the national economyand a typical process manufacturing. It is proposed to cultivate more than 70 intelligent manufacturingexcellent scenarios and 50 smart chemical parks in 2026, and the relevant policies are highly consistent withthe Company’s overall solution for process industrial post-processing intelligence.
In February 2024, the fourth meeting of the Financial and Economic Commission of the CPC CentralCommittee proposed that accelerating product renewal is an important measure to promote high-qualitydevelopment, and on March 7
th, 2024, The State Council issued the Action Plan to Promote Large-scaleEquipment Renewal and Consumer Goods for New Ones. Programmatic documents such as Promoting theImplementation Plan for Equipment Renewal in the Industrial Field and Guidelines for Equipment Renewaland Technological Transformation in Key Industrial Industries have been introduced one after another,focusing on equipment renewal and technological transformation in key industries, which is expected toleverage the huge market size and directly activate the upgrading demand for intelligent equipment.
In 2024, Service-oriented Manufacturing Standard System Construction Guide, National ArtificialIntelligence Industry Comprehensive Standardization System Construction Guide (2024 edition), ChemicalIndustry Intelligent Manufacturing standard System Construction Guide (2024 edition), SmartManufacturing Typical Scenario Reference Guide (2024 edition), Smart Factory Gradient Cultivation ActionImplementation Plan, Guild for Digital Transformation Implementation of Manufacturing Enterprises andother policy guidelines to lead the Company’s intelligent manufacturing equipment, industrial servicebusiness standardization and accelerated development.
The above national industry and industry support policies, as well as policies and measures to stabilizegrowth, raise demand, promote investment and consumption, combined with the national “14
th
Five-Year”Digital Economy Development Plan , “14
th
Five-Year” Intelligent Manufacturing Development Plan, “14
th
Five-Year” Robot Industry Development Plan, “14
th
Five-Year” Informatization and Industrialization DeepIntegration Development Plan and other planning goals. Under the guidance of the policy, the marketdemand is released at an accelerated pace, providing continuous momentum for the Company’s technologyiteration, market expansion and product innovation. The Company’s deep cultivation of basic raw materialindustries such as petrochemical and chemical industries is just a strategic opportunity with intensive policysupport and urgent equipment transformation needs, and the Company is expected to fully benefit from theindustry policy dividends of smart factory construction standards promotion and equipment updating andtechnological transformation.
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 as well asother special operation robots and complete systemsolutions which can replace high-risk, harsh workingconditions, and heavy manual labor.
(High temperature) Operation robot for submerged arcfurnace and serialized intelligent products, completesystem solutions are applied for high-risk as well asother special operation robots and complete systemsolutions which can replace high-risk, harsh workingconditions, and heavy manual labor.
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;The successful delivery of smart workshop projectdemonstration project in the field of calcium carbidearc furnace production, committed to promoting theproduction of fewer people, unmanned, safe, efficientand environmental”, and bringing the traditionalindustrial technology revolution with industrysubversive technology.
(High temperature) Operation robot for sub-mergedarc furnace and its surrounding systems are in leadingposition worldwide in the field of calcium carbide;The successful delivery of smart workshop projectdemonstration project in the field of calcium carbidearc furnace production, committed to promoting theproduction of fewer people, unmanned, safe, efficientand environmental”, and bringing the traditionalindustrial technology revolution with industrysubversive technology.
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
The business model of large-scale intelligent manufacturing equipment is driven by sales, productionorganization, product delivery and acceptance, revenue recognition and other links, as shown in thefollowing figure:
Industrial ServicesThe industrial services, extended from in the above-mentioned related fields of intelligentmanufacturing equipment, are mainly integrated service, equipment maintenance and spare parts saleswhich facing the operation in the application fields of intelligent manufacturing equipment, after-salesindustrial service, and supplementary industrial service.
The industrial services, extended from in the above-mentioned related fields of intelligentmanufacturing equipment, are mainly integrated service, equipment maintenance and spare parts saleswhich facing the operation in the application fields of intelligent manufacturing equipment, after-salesindustrial service, and supplementary industrial service.
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
(2) Develop new quality productivity and set a new benchmark for smart factories.
As a result of revolutionary technological breakthroughs and innovative allocation of production factors, newquality productivity is reconstructing the competitive pattern of the global intelligent equipment industry,promoting the evolution of China’s industry from traditional manufacturing to intelligent manufacturing, andpromoting the transformation of industrial ecology. In the application field of intelligent manufacturingequipment products, the company has realized the ability and breakthrough of jumping from single machineand automated production line to digital workshop and smart factory overall solution, and deeply serves theneeds of national digital strategy, industrial upgrading and development to cultivate future industries.
Facing the national digital strategy and future industrial needs, the Company invested heavily in the directionof smart factories. During the reporting period, the Company successfully completed two calcium carbidesmart factory (workshop) projects of Inner Mongolia Junzheng Chemical Co., Ltd. and Ningxia YinglitChemical Co., LTD., with incremental revenue of RMB 320 million. Calcium carbide production intelligentfactory comprehensively innovate the traditional production process of calcium carbide sub-merged arcfurnace, overcoming the pain points of the industry with harmful environment, high energy consumption,large pollution and low production efficiency. The Company integrates artificial intelligence technology suchas machine vision, deep learning, robot control algorithm, and expert control strategy with industrial Internetcommunication technology, and applies it to the overall solution of intelligent workshop and intelligentfactory, building an intelligent closed-loop of “perception – decision – execution”, significantly improvingproduction safety and operational efficiency, and realizing accurate control and efficient intelligentproduction of the whole process.
The Company builds smart factories in the field of calcium carbide production, relying on intelligentproduction decision-making management, to maximize the creation of less humanized and unmannedworkshops, help customers to produce safely and efficiently, open the future manufacturing mode, subvertthe traditional production process of electric stone furnace, achieve revolutionary industrial upgrading ofintelligent manufacturing, and establish a new benchmark for intelligent factories in the industry.
Legend: Digital twin technology enables calcium carbide smart factory
(3) Key performance drivers
Since 2017, the Company’s performance has continued to maintain a good and rapid growth trend, and therevenue scale has exceeded RMB 1 billion, 1.5 billion, 2 billion and 2.5 billion, and the net profit has alsotended to increase simultaneously. In 2024, in the face of a complex external environment, the Companyachieved operating revenue of RMB 2.863 billion, another record high, net profit to the parent of RMB 524million, intelligent manufacturing equipment, industrial services, environmental protection processequipment and other business revenue achieved year-on-year growth.
The Company has long been committed to the innovation and development of intelligent manufacturingequipment, to achieve domestic equipment instead of imports and the independent control of majorequipment core technology. With the technology leading differentiation competitive strategy, the Companycontinues to open up new markets, leading the new demand of the industry. The Company’s solid coretechnical capabilities, rich industrial application practical experience, “point → line → whole” efficienttechnology development path, and focus on high-tech barriers to R&D positioning, together to construct theCompany’s sustainable and healthy development of the inner core driving force. At the same time, thepromotion and implementation of medium and long-term strategic plans such as China’s intelligentmanufacturing 2025 and 2035, the intensive introduction of industrial promotion policies such as intelligentmanufacturing, robotics and digital economy, and the strong internal demand of manufacturing enterprisesfor automation, digitalization and intelligent manufacturing have provided a strong external environment forthe high-quality development of the Company.
In recent years, the driving factors of the Company’s performance are mainly due to the strong demandbrought by actively grasping the digitalization and intelligent upgrading of China’s manufacturing industry.Through technological progress and product innovation, the Company has achieved multi-categoryexpansion of products. Intelligent manufacturing equipment continues to carry out technology iteration andproduct innovation, and the accelerated application of new products in the market has promoted the company
to continue the growth period with the second curve. During the period, the sales growth of intelligentmanufacturing equipment for solid material reprocessing was strong. Innovative products represented byhigh-temperature furnace front operation robots have been successfully applied in high-risk and heavyworking conditions fields such as calcium carbide, ferrosilicon, silico-manganese, industrial silicon, etc. Inparticular, during the reporting period, the successful delivery and operation of two calcium carbide smartfactories (workshops) made the “robot plus”business quickly occupy an important revenue share andpromote the overall performance of the Company; In addition, the Company applied the key intelligentequipment for solid material post-processing in the field of new energy polysilicon raw materials to multiplepoints in the industry, further expanding the application dimension of products in the field of irregular solidmaterial post-processing intelligent manufacturing equipment, providing a new increment for the revenuegrowth of intelligent manufacturing equipment; The industrial services business has maintained steadygrowth for a long time, becoming an important source of revenue and profit for the company, and alsoempowering the intelligent manufacturing equipment business; Energy saving, emission reduction andenvironmental protection process equipment business also added to the Company’s overall revenue andprofit.
The Company has always adhered to the implementation of technology leading strategy, large systemcomplete strategy, product service integration strategy. In the field of product application, the Company’sintelligent manufacturing overall solution implementation ability continues to improve, smart factorysuccessfully landed, “intelligent equipment” and “industrial services” coordinated development mode tofurther consolidate the Company’s core competitiveness, promote the Company’s performance to achievegood and rapid development.
Looking forward to the future, the main business that is highly compatible with the development direction ofChina’s intelligent manufacturing will continue to contribute to the growth momentum of the Company.
3.Core Competitiveness Analysis
As an enterprise with product innovation as its core driving force, the Company adheres to a differentiatedcompetitive strategy of leading technology. With a deep understanding of the development trend of China’sindustrial automation and more than 20 years of industrial practice, the Company has built a coordinateddevelopment business pattern of intelligent manufacturing equipment and industrial service, environmentalprotection technology and equipment beneficial supplement, and formed a core competitiveness system of“technology - product - service – ecology”. In recent years, the Company’s business scale has grown rapidly,and its profitability has been greatly improved. Through continuous strengthening of digital and intelligenttechnology R&D and application investment, the Company has formed a complete product matrix covering“single equipment - complete production line - smart factory”, creating a global service capability, and itscomprehensive competitiveness has continued to improve in the development of the industry.
(1) Technology - Technology leadership forge core competitiveness.
①Leadership in product capabilities driven by technology.
Innovation is the core driving force for the development of science and technology enterprises, andtechnology leadership is the key to the Company’s core competitiveness. The Company closely focuses onthe needs of China’s intelligent manufacturing industry, continues to increase R&D investment, accuratelygrasp development opportunities, actively expand market application fields, and constantly improve productinnovation capabilities and application levels. With unremitting efforts, the company continues to consolidateits technological lead and ranks at the forefront of the industry competition for a long time.
In terms of intelligent manufacturing equipment product line, the Company’s products have significanttechnical advantages of high speed, high precision and high reliability, and accurately focus on the high-endintelligent manufacturing equipment market to meet customers’ stringent requirements for efficient, safe andfine production. In the domestic application field, the Company’s products and technologies have long beenin the leading position in China, reaching the international advanced level, and the application scale of someproducts has reached the international leading level.
In the field of intelligent manufacturing overall solutions, the Company deeply integrates artificialintelligence technologies such as machine vision, deep learning, and robot control algorithms to createmulti-category innovative product solutions and build digital and intelligent production scenarios forcustomers. The Company has successfully realized the overall intelligent manufacturing solutions such assolid material post-processing, electric stone furnace smelting operation intelligent workshop, helpingcustomers realize the digital transformation and intelligent manufacturing upgrade of the factory, promotingthe synchronous improvement of production efficiency and quality, and realizing intelligent manufacturing.
②Innovation and application capabilities driven by underlying technologies.
Mastering the underlying technology, algorithm and application platform technology is the key to realizingthe autonomy and controllability of the Company’s core technology, and it is also the core technology path toimplement the differentiated competition strategy of technology leadership and enhance competitiveness.Taking the Company’s technology accumulation in the field of “robot plus” as an example, the Companyrelies on the deep control of the underlying technology, can quickly respond to the needs of the industry, anddevelop different functions and different models of special operation robot products in high temperatureenvironment. This capability is not only a solid technical support for the Company to implement digitalworkshop and smart factory solutions, but also a necessary core competitiveness to promote the digitaltransformation of the industry.
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：Robot motion control system
Legend：R&D platform of AI system based on artificial intelligence
Legend：Intelligent inspection and digital vision technology
③Systematized innovation and integrated R&D capability through “Point → Line → Whole” path.
Throughout the Company’s technology, product development and industrialization process, the Companyenters new industries and new fields, usually with key single unit equipment (“point”) as the entry point;After breaking through the technical problems that have long restricted the development of the industry andsolving the key pain points of the industry, the Company rapidly expanded the key single unit equipment tothe automated production line (“line”) to achieve vertical innovation of products; With the accumulation oftechnology and the in-depth understanding of the industry, the Company further builds the overall solution ofintelligent manufacturing (“whole”) to form an integrated technology and product capability. This “point →line → whole” systematized innovation and integrated R&D capability helps the Company concentratetechnology, capital and resources, reduce product development risks, improve the output efficiency of R&Dinvestment, open the ceiling of growth with new products, new fields, new applications and new markets,and enhance the Company’s core competitiveness.
At the market level, although the sales of stand-alone products (“point”) face greater competition, the projectcontract amount is small, and the market space is limited, it has laid a key technical foundation for theCompany; The sale of complete equipment (“line”) significantly improves the market competitiveenvironment, reduces the competitive pressure, and enlarges the potential contract amount and market space;The overall solution of intelligent manufacturing (“whole”) is expected to achieve multiple growth of marketspace and contract amount with strong competitiveness and limited competitive pressure.
Taking the high-temperature special operation robot products in the field of mineral furnace smelting as anexample, the Company has successfully developed a calcium carbide (high-temperature) pre-furnaceoperation robot (“point”) with the significance of subverting manual operation based on industrial robottechnology in view of the safety production and artificial replacement needs of traditional calcium carbidethermal furnace. Subsequently, the Company has developed calcium carbide ramming robot, inspection robot,intelligent pot handling technology and other key production and operating systems (“line”), and eventuallyformed an epoch-making intelligent workshop overall solution (“whole”). This systematic scientific andtechnological innovation and integrated research and development capability not only promotes therealization of less humanized and unmanned production, but also promotes the upgrading of the intelligentmanufacturing industry of the industry.
④Technology migration and cross-industry application capability.
The Company can make technological breakthroughs and accumulation in a certain field throughcross-industry “redevelopment” and “re-application” to achieve horizontal expansion of technology andaccelerate the improvement of core competitiveness, which fully reflects the Company’s technologymigration and cross-industry application ability.
For example, the Company will be based on the technical breakthrough and technology accumulation in thedirection of special operation robots in the high-temperature working environment of calcium carbide, for thehorizontal redevelopment of a variety of high-temperature working environment of ferrosilicon,silicomanganese, industrial silicon, etc., has achieved phased application results, and signed product orderssuccessively, to achieve technical migration and cross-industry applications.
Legend：The product atlas of special operation robot in high temperature environment
⑤Patents, software copyrights and proprietary technologies continue to support technologicalinnovation capabilities.
During the reporting period, the Company obtained 57 patents approved by the State Intellectual PropertyOffice, including 18 invention patents and 39 utility model patents; 17 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 are the significant core competitiveness. (Note: The amount of intellectual property acquiredduring the reporting period may have a slight deviation due to the limitation of statistical time points, and isonly for investors’ trend reference. Investors are urged to pay special attention to relevant risk factors.)
(2) Product - Rich product matrix to establish market competitive advantage.
Intelligent workshop, intelligent factory, overall solution competitive advantage
The Company applies intelligent technologies such as machine vision, deep learning, robot control algorithm,and expert control strategy, combined with industrial Internet communication technology, to the overallsolution of smart factory, maximize the realization of less humanized and unmanned workshops, andpromote the upgrading of intelligent manufacturing industry in related industries. Customers rely onintelligent production decision-making management to achieve safe, reliable and refined production andimprove overall operational efficiency.
From the calcium carbide post-processing intelligent workshop project delivered to customers by theCompany, in the application side, the customer has realized the replacement of manual work underdangerous and heavy working conditions with high-tech products, innovated the traditional process method,and improved the safety and well-being of workers, which is of great significance to the calcium carbideindustry; At the product sales end, the overall market space of the smart factory is theoretically expected toform several times and ten times the market potential of the original high-temperature furnace operationrobot. This “whole” - the ability of the smart factory overall solution, determines the Company in the futuremarket competition in a competitive position.
Legend：Calcium carbide production intelligent workshop to achieve few people, unmanned production operations
Legend: Product matrix diagram
(3) Service - Service integration capabilities to enhance competitive advantage.
The Company will closely combine the technology leading advantage in intelligent equipment and the scaleadvantage of product application with industrial services, and actively promote the implementation of theintegration strategy of products and services. The Company’s industrial services, covering consulting, spareparts sales, equipment transportation, inspection, maintenance and transformation, production operation andmaintenance management and other full-scene application forms, has now covered all regions except HongKong, Macao, Taiwan, Tibet, service scale, capacity of the industry leading. The Company’s serviceintegration strategy provides customers with multi-dimensional, high-quality equipment operation supportservices and production operation and maintenance integrated solutions, helping customers focus on themain business, to achieve continuous, stable and efficient production. The Company’s professional,high-quality and advanced service model has become the preferred choice for customers to improve qualityand efficiency in a complex industrial production environment, creating value for customers and achieving awin-win situation. The mutual promotion and benign interaction between intelligent equipment and industrialservices has formed a good synergy effect and promoted the high-quality development of the Company’sbusiness.
Legend: The coordinated development and positive interaction of intelligent equipment and industrial services
In 2024, the Company’s industrial service business achieved revenue of RMB 768 million, an increase of
7.18%. The Company’s industrial service revenue has increased year after year, which has a significantadvantage in reducing the revenue fluctuation of the intelligent equipment business. On the one hand,industrial service revenue can steadily increase with the growth of intelligent equipment product sales andcustomer production and operation equipment base, the Company to undertake large-scale productionoperation and maintenance service projects will also bring a step wise increase in service revenue. Thismodel of collaborative development of services and products not only enhances customer stickiness,smoothes the fluctuations of the intelligent equipment business effectively and improves the anti-risk abilityof the Company’s overall operation.
Looking ahead, intelligent equipment and industrial services, as two key growth areas, will act as dualengines, driving the Company’s performance to achieve long-term, sustainable, and stable growth.
(4) Ecology - The industrial ecological results stabilize the core competitiveness.
①Leading competitiveness in the industry driven by advanced technology.
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.
②Brand competitiveness to enhance customer loyalty.
The Company establishes brand with quality, promotes progress with technology, and wins trust with service.Through high-quality products and efficient industrial services, the Company strives to achieve productionautomation, digital and intelligent manufacturing for customers. The Company enjoys continuous leadingvisibility, reputation and customer loyalty in the main product application fields in China as well as pursuesexcellence, leads the development of intelligent manufacturing equipment in the application industry, andbuilds a stable, cooperative and win-win customer base in the long term. High-quality customer resourcesand huge demand potential for intelligent manufacturing equipment are the foundation and fertile soil for theCompany’s sustained and rapid development.
③Improving the quality and efficiency of intelligent manufacturing equipment, to promote thesustainable development of social green and low-carbon economy.
To transform traditional industries with high and new technology is the responsibility, mission andresponsibility entrusted to innovative science and technology enterprises by the era. The Company’s overallsolution for intelligent manufacturing in the field of calcium carbide smelting in mineral furnace can bewidely used in intelligent manufacturing equipment such as automatic loading logistics system in many
industries, which has a transformative impact on replacing the field of manual production under high-riskand heavy working conditions, and has become the basis for customers to achieve safe, efficient and refinedproduction. At the same time, the standardization of intelligent equipment will bring about the improvementof capacity utilization, help to achieve cost reduction and efficiency, and support the early achievement of thenational double carbon goal.
The Company actively cultivates and develops new quality productivity, makes technological breakthroughsand continuous applications in the direction of large-scale intelligent manufacturing equipment andintelligent factories, and promotes the improvement of social production efficiency; Customers produce in anintensive way, solve the problem of social structural employment gap, and improve the safety and well-beingof workers; With the continuous expansion of the application scale of the Company’s products and services,while achieving good social benefits, the Company’s operating performance and shareholder returns continueto improve.
4.Main Businesses Analysis
(1) Overview
In the year 2024, despite facing a complex and challenging external environment, as well as numerousinternal difficulties, the China’s economy continued to advance at a steady pace, achieving substantialprogress towards high-quality development. The GDP reached RMB134.9 trillion, a year-on-year increase of5% and the growth rate ranks among the top of the world’s major economies. In the face of externalpressures such as sluggish world economic recovery, high trade protectionist barriers, geopolitical conflictsand frequent international trade frictions, as well as difficulties such as insufficient effective domesticdemand and the release of pains caused by the transformation of old growth drivers, the country activelydeployed a package of incremental policies to promote a marked recovery in economic performance andeffectively boost social confidence. The Company’s intelligent manufacturing equipment products are widelyused in petrochemical and chemical industry, mineral furnace, new energy, food, feed, building materials,medicine, food, port and other pillar industries of the national economy, the main product application field inthe industrial digitalization, intelligence, equipment renewal and transformation of the demand for long-termprospects, providing the company with a good space for sustainable development.
During the reporting period, the Company actively grasped industrial opportunities, faced future demand,continued to increase in R&D inputs, improved competitiveness, and maintained an advantageouscompetitive position in a complex and changing market environment. In 2024, driven by the two core growthbusinesses of intelligent manufacturing equipment and industrial services, the Company achieved operatingrevenue of RMB 2.863 billion, an increase of 11.59%, the revenue reached the best level in history. The netprofit attributable to the parent company was RMB 524 million, a slight decrease of 1.76% year-on-year. TheCompany’s weighted average return on equity (ROE) was 14.59%. From the perspective of revenuecomposition, the Company’s intelligent manufacturing equipment and industrial service revenue maintaineda year-on-year growth rate of 8% and 7.18% respectively, and their revenue scales accounted for 66.21% and
26.84% of the Company’s total revenue respectively.
From the perspective of revenue and profit composition, the structure of revenue and contribution grossprofit of the Company’s intelligent manufacturing equipment, industrial services, environmental protectiontechnology and equipment is shown in the following figure.
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 | 2024 | 2023 | Year-on-year growth | |
| Operating revenue | 2,862,689,438.16 | 2,565,408,783.42 | 11.59% | |
Operating profit
| Operating profit | 615,975,331.52 | 633,603,259.16 | -2.78% |
Total profit
| Total profit | 612,657,514.33 | 638,059,931.66 | -3.98% |
| Net profit | 544,216,144.76 | 552,949,392.85 | -1.58% |
There of: Attributable to shareholders of theparent company
| There of: Attributable to shareholders of the parent company | 524,225,526.98 | 533,591,213.86 | -1.76% |
(2) Operating revenue and cost of sales
①Breakdown of operating revenue
Unit：RMB
| 2024 | 2023 | Increase/Decrease over the same period of previous year | |||
| Amount | Proportion of revenue | Amount | Proportion of revenue | ||
| Total | 2,862,689,438.16 | 100% | 2,565,408,783.42 | 100% | 11.59% |
| Categorized by industry | |||||
| Intelligent manufacturing equipment | 1,895,264,924.65 | 66.21% | 1,754,845,282.12 | 68.40% | 8.00% |
| Industrial service | 768,470,541.08 | 26.84% | 717,017,884.35 | 27.95% | 7.18% |
| Environmental protection process and equipment | 198,953,972.43 | 6.95% | 93,545,616.95 | 3.65% | 112.68% |
| Categorized by product | |||||
| Post-processing intelligent manufacturing equipment for solid material | 1,334,705,622.25 | 46.63% | 1,372,204,429.15 | 53.49% | -2.73% |
| Robots plus | 391,445,010.49 | 13.67% | 134,576,925.32 | 5.25% | 190.87% |
| Post-processing intelligent manufacturing equipment for rubber | 100,852,513.08 | 3.52% | 72,650,793.71 | 2.83% | 38.82% |
| Intelligent logistics, warehousing systems | 68,261,778.83 | 2.38% | 175,413,133.94 | 6.84% | -61.09% |
| Operation, maintenance and after-sales type industrial services | 670,570,074.85 | 23.43% | 606,991,420.18 | 23.66% | 10.47% |
| Supplementary industrial services and others | 97,900,466.23 | 3.42% | 110,026,464.17 | 4.29% | -11.02% |
| Environmental process and complete equipment | 198,953,972.43 | 6.95% | 93,545,616.95 | 3.64% | 112.68% |
| Categorized by region | |||||
| Region of east China | 860,334,793.95 | 30.06% | 896,345,862.84 | 34.94% | -4.02% |
| Region of south China | 133,547,014.53 | 4.67% | 300,459,581.67 | 11.71% | -55.55% |
| Region of central China | 81,065,769.39 | 2.83% | 68,220,171.50 | 2.66% | 18.83% |
| Region of north China | 803,108,366.19 | 28.05% | 400,478,345.88 | 15.61% | 100.54% |
| Region of northwest China | 532,181,544.65 | 18.59% | 530,568,521.70 | 20.68% | 0.30% |
| Region of southwest China | 177,845,680.44 | 6.21% | 130,943,956.98 | 5.10% | 35.82% |
| Region of northeast China | 208,563,493.84 | 7.29% | 226,113,529.63 | 8.81% | -7.76% |
| Overseas | 66,042,775.17 | 2.30% | 12,278,813.22 | 0.49% | 437.86% |
| Categorized by sales model | |||||
| Direct sales | 2,862,689,438.16 | 100.00% | 2,565,408,783.42 | 100.00% | 11.59% |
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 | 1,895,264,924.65 | 1,225,620,646.95 | 35.33% | 8.00% | 15.99% | -4.45% |
| Industrial service | 768,470,541.08 | 540,827,684.36 | 29.62% | 7.18% | -0.31% | 5.28% |
| Environmental protection process and equipment | 198,953,972.43 | 140,494,867.28 | 29.38% | 112.68% | 284.32% | -31.54% |
| Categorized by product | ||||||
| Post-processing intelligent manufacturing equipment for solid material | 1,334,705,622.25 | 844,309,477.70 | 36.74% | -2.73% | 7.64% | -6.10% |
| Robots plus | 391,445,010.49 | 265,936,674.92 | 32.06% | 190.87% | 230.28% | -8.11% |
| Post-processing intelligent manufacturing equipment for rubber | 100,852,513.08 | 58,502,072.71 | 41.99% | 38.82% | 26.28% | 5.76% |
| Intelligent logistics, warehousing systems | 68,261,778.83 | 56,872,421.62 | 16.68% | -61.09% | -60.91% | -0.38% |
| Operation, maintenance and after-sales type industrial services | 670,570,074.85 | 454,339,472.48 | 32.25% | 10.47% | 2.52% | 5.26% |
| Supplementary industrial services and others | 97,900,466.23 | 86,488,211.88 | 11.66% | -11.02% | -12.94% | 1.95% |
| Environmental process and complete equipment | 198,953,972.43 | 140,494,867.28 | 29.38% | 112.68% | 284.32% | -31.54% |
| Categorized by region | ||||||
| Region of east China | 860,334,793.95 | 557,162,701.00 | 35.24% | -4.02% | -4.71% | 0.47% |
| Region of south China | 133,547,014.53 | 97,065,619.78 | 27.32% | -55.55% | -44.48% | -14.49% |
| Region of central China | 81,065,769.39 | 59,225,337.99 | 26.94% | 18.83% | 13.36% | 3.52% |
| Region of north China | 803,108,366.19 | 543,253,857.63 | 32.36% | 100.54% | 114.84% | -4.50% |
| Region of northwest China | 532,181,544.65 | 368,546,757.74 | 30.75% | 0.30% | 6.33% | -3.92% |
| Region of southwest China | 177,845,680.44 | 114,539,358.87 | 35.60% | 35.82% | 48.09% | -5.33% |
| Region of northeast China | 208,563,493.84 | 130,467,249.30 | 37.44% | -7.76% | -6.92% | -0.57% |
| Overseas | 66,042,775.17 | 36,682,316.28 | 44.46% | 437.86% | 423.33% | 1.54% |
| Categorized by sales model | ||||||
| Direct sales | 2,862,689,438.16 | 1,906,943,198.59 | 33.39% | 11.59% | 16.58% | -2.85% |
During the reporting period, the reasons of operating revenue and gross profit rate change are as follows:
During the reporting period, the revenue of the Company’s two core growth businesses, intelligentmanufacturing equipment and industrial services, increased by 8.00% and 7.18% year-on-year, respectively,and the operating revenue was RMB 1.895 billion and RMB 768 million, respectively, both reaching thebest level in history. The revenue of environmental protection technology and equipment increasedsignificantly to RMB 199 million, but the gross profit rate significantly returned to the industry average,which had a neutral impact on the Company’s overall profit.
Intelligent manufacturing equipment:
Post-processing intelligent manufacturing equipment for solid material achieved revenue of RMB 1.335billion, a slight decrease of 2.73% year-on-year, and continued to maintain a high level of product delivery,among which, post-processing intelligent equipment for polysilicon centralized delivery and recognition ofrevenue, revenue increased significantly, making up for the negative fluctuations of other product revenue inthe category. From the perspective of gross profit rate, the gross profit rate of different subcategories ofproducts has changed, affected by a single project with revenue of about RMB150 million, which profit wasrelatively low, as well as the gross profit rate of some product categories is under pressure from the marketenvironment, the overall gross profit rate of solid material post-processing intelligent manufacturingequipment has decreased to 36.74%.
The “robot plus” business was driven by the successful delivery and revenue recognition of two calciumcarbide smart factories (workshops) of Inner Mongolia Junzheng Chemical Co., Ltd. and Ningxia YinglitChemical Co., LTD., with a significant increase in revenue to RMB 391 million. The cost of above twosmart factories (workshops), as demonstration application, are relatively high, and the gross rate of ovenrobots is reduced, affecting the overall gross rate of the “robot plus” business down to 32.06%.
Rubber post-processing intelligent manufacturing equipment achieved revenue of RMB 101 million, anincrease of 38.82%, gross margin increased to 41.99%, the increase in its revenue and gross margin level, allfrom the contribution of overseas sales growth.
Intelligent logistics, warehousing systems: The revenue decreased significantly by 61.09% to RMB 68.26million, mainly due to the cumulative implementation of projects in the same period of the previous year, thebase period revenue level is too high, the revenue for this period has dropped significantly due to the limitednumber of completed projects for which revenue was recognized; The Company’s competitive advantage inthis area has not been reflected in the product pricing. The gross profit margin for the reporting period was
16.68%, which remains at a relatively low level compared with other intelligent equipment products of theCompany.
In 2024, in the face of numerous challenges in the market environment, the Company’s intelligentmanufacturing equipment business performed solidly and steadily compare with the whole industry. Lookingahead, the Company will continue to emphasize its core competitiveness, overcome market challenges andadverse factors, seize the historical opportunity of intelligent manufacturing, and strive to achieve evenbetter performance.
Industrial services: the Company actively implements the strategy of integration of products and services. Asone of the Company’s core growth businesses, industrial service enjoys long-term sustained and steadygrowth. “Intelligent equipment” and “industrial services” constitutes two performance-driven engines.During the reporting period, the operating income of industrial services was RMB 768 million, an increase of
7.18%. Among them, the revenue of operation and maintenance and after-sales industrial services was RMB671 million, an increase of 10.47%. The overall gross profit margin of industrial services increased by 5.28%to 29.62% year-on-year, reaching a higher level in recent years, among which, the gross profit margin ofoperation and maintenance and after-sales industrial services reached 32.25%, contributing to the Company’sbetter profit.
Environmental process and complete equipment: During the reporting period, the revenue of this kindincreased significantly, reaching RMB 199 million, due to the impact of project delivery acceptance andrecognition of revenue. However, due to the low profit level of the project, the gross profit margin fell to
29.38%, which constituted a beneficial 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 | 2024 | 2023 | Change (%) |
| Sub-total of cash inflows from operating activities | 2,653,190,333.98 | 2,417,361,797.41 | 9.76% |
| Sub-total of cash outflows from operating activities | 2,009,347,354.97 | 2,278,419,139.40 | -11.81% |
| Net cash flows from operating activities | 643,842,979.01 | 138,942,658.01 | 363.39% |
| Sub-total of cash inflows from investing activities | 7,332,677,177.80 | 5,636,466,482.27 | 30.09% |
| Sub-total of cash outflows from investing activities | 7,932,922,408.48 | 5,808,835,108.54 | 36.57% |
| Net cash flows from investing activities | -600,245,230.68 | -172,368,626.27 | -248.23% |
| Sub-total of cash inflows from financing activities | 93,663,137.94 | 33,120,286.94 | 182.80% |
| Sub-total of cash outflows from financing activities | 416,020,266.31 | 327,086,068.16 | 27.19% |
| Net cash flows from financing activities | -322,357,128.37 | -293,965,781.22 | -9.66% |
| Net increase in cash and cash equivalents | -278,796,050.78 | -326,267,521.07 | 14.55% |
①Net cash flow generated by operating activities during the current period increased by 363.39% comparedwith the same period of last year, jointly affected by the increase in contract payments received fromcustomers and the decrease in operating cash outflow during the reporting period.
②Net cash flow from investment activities decreased by 248.23% in the current period compared with thesame period last year, mainly due to the impact of cash management activities;
③Net cash flow from financing activities in the current period decreased by 9.66% compared to the sameperiod last year, mainly due to the Company’s share buyback in the current period.
④The net increase in cash and cash equivalents for the current period was -278.7961 million, an increase of
14.55% year-on-year, which was jointly affected by the net cash flow from operating activities, investmentactivities and financing activities.
5. Analysis of Assets and Liabilities
(1)Significant Changes in Asset Composition
Unit: RMB
| Dec 31, 2024 | Jan 1, 2024 | Increase/ Decrease in proportion | Major changes | |||
| Amount | Proportion of total asset | Amount | Proportion of total asset | |||
| Cash at bank and on hand | 55,996,398.59 | 0.81% | 332,216,413.35 | 5.00% | -4.19% | Mainly due to the impact on cash management activities. |
| Accounts receivable | 1,201,119,619.90 | 17.27% | 1,004,337,478.08 | 15.11% | 2.16% | Due to the increase in sales scale. |
| Contract assets | 156,905,007.88 | 2.26% | 119,436,138.29 | 1.80% | 0.46% | Due to the increase in the quality guarantee of unexpired contracts. |
| Inventories | 2,072,436,762.83 | 29.80% | 2,405,309,228.52 | 36.18% | -6.38% | Mainly due to the decrease in products, raw materials and the increase in goods shipped. |
| Long-term equity investments | 523,324,767.86 | 7.52% | 404,005,942.77 | 6.08% | 1.44% | Mainly affected by the listing of the associated company Bloom Technology on the Shanghai Stock Exchange, the balance of |
| long-term equity investment increased. | ||||||
| Fixed assets | 362,897,699.40 | 5.22% | 229,647,272.08 | 3.45% | 1.77% | Infrastructure projects are transferred to fixed assets in this period. |
| Construction in progress | 2,023,251.20 | 0.03% | 74,985,542.78 | 1.13% | -1.10% | Infrastructure projects are transferred to fixed assets in this period. |
| Short-term borrowings | 36,873,798.71 | 0.53% | 23,872,075.01 | 0.36% | 0.17% | Due to increase in short-term bank borrowing by subsidiary. |
| Contract liabilities | 1,806,791,270.47 | 25.98% | 1,763,411,436.97 | 26.52% | -0.54% | The amount increased slightly, while the proportion decreased slightly. |
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 )） | 802,248,744.33 | 48,690.52 | 7,831,966,131.96 | 6,699,310,000.00 | 1,934,953,566.81 | |||
| Investments in other equity instruments | 55,443,728.57 | 33,974,208.57 | 489,858.65 | 5,068,467.17 | 61,002,054.39 | |||
| Financing receivables | 72,533,260.37 | -18,681,463.70 | 53,851,796.67 | |||||
| Sub-total of the above | 930,225,733.27 | 48,690.52 | 33,974,208.57 | 7,832,455,990.61 | 6,699,310,000.00 | -13,612,996.53 | 2,049,807,417.87 | |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Note: the financial asset held for trading above-mentioned mainly are monetary fund and structuralbank deposits, 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
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 |
| 523,324,767.86 | 404,005,942.77 | 29.53% |
The above investments represent the end of the period amount of the Company’s equity investments inassociates and joint ventures. The balance of long-term equity investment increased due to the listing of theassociated company Bloom Technology on the Shanghai Stock Exchange.
(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
①Overall 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 | 5,978.00 | 36,437.19 | 0 | 0 | 0.00% | 8,817.27 | The Company should conduct special account management and cash management for the funds not yet used. | 0 | |
| Total | -- | 45,000 | 44,341.86 | 5,978.00 | 36,437.19 | 0 | 0 | 0.00% | 8,817.27 | -- | 0 | |
| Explanation of overall usage of funds raised | ||||||||||||
| As of December 31st, 2024, the Company raised fund has used a total amount of RMB 364.3719 million (excluding the deducted issuance expenses of RMB 6.5814 million), and the raised funds has not used of RMB 88.1727 million (including income from the cash management of the raised fund RMB 9.126 million.) | ||||||||||||
②Commitment 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 | 4,758.22 | 12,684.51 | 79.28% | July,2024 |
| 2. Sub-merged arc furnace smelting robot and its intelligent factory R & D demonstration project. | 9,000 | 9,000 | 562.80 | 6,713.27 | 74.59% | June,2025 |
| 3.Project of technology innovation and service center (R&D center) | 7,000 | 7,000 | 656.97 | 4,697.55 | 67.11% | December,2023 |
| 4.Supplementary working capital | 12,341.86 | 12,341.86 | 12,341.86 | 100.00% | Not applicable | |
| Total | 44,341.86 | 44,341.86 | 5,978.00 | 36,437.19 | -- | -- |
(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 13.65% equity. This project obtained the medical device registration certificate for image-guidedradiotherapy positioning systems (IGPS) issued by the former China Food and Drug Administration inMarch 2016. In February 2020, the Optical Guidance Tracking System (OGTS) has obtained medical deviceregistration certificate issued by the State Drug Administration. In September 2024, it obtained the medicaldevice registration certificate for the X-ray stereotactic radiotherapy system (RayerKnife) issued by theNational Medical Products 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 5.56% of itsequity. The main R&D product of the project, navigation and positioning equipment for spinal surgery has
obtained 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 longR&D cycle, high barriers to enter, long product registration cycle, and big clinical risks. There aremany risk factors that cannot be determined during type testing and clinical trials. For the registeredprojects, there is also a risk whether the promotion and industrialization can meet the expectation.Hereby, investors are advised to carefully evaluate the relevant risk factors.
②Progress 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 70 million ofproject investment returns and profit distribution, the earnings are good.
③Cooperative R&D project: Industrialization R&D project of key technologies and principleprototypes of humanoid robots.
On August 18
th, 2023, the Company signed the Strategic Cooperation Framework Agreement with HGDUniversity, jointly establishing a R&D project for the industrialization of key technologies and principleprototypes of humanoid robots, and promoting the industrialization of related technological achievementsand products. The R&D project plan to focus on breaking through key technologies such as the design ofbionic motion structure mechanisms, achieving high explosive force and smooth drive, intelligent perceptionand navigation planning in complex scenes, full-body coordinated movement, human-like dexterousoperation, highly adaptable dynamic balance control, and high-power-density batteries.
The goal setting for project R&D is highly challenging, with high requirements for the robot’s movementability, operational ability and intelligence level. Up to now, during the process of debugging the principleprototype, the overall machine scheme has been optimized, the structure and performance of key componentshave been continuously optimized and improved, and the performance of corresponding components hasbeen tested. The project simultaneously conducts research and development work such as the training ofarm-hand operation ability, the physical verification of motion control algorithms, and the physicalverification of navigation planning algorithms.
④The 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 holds 9,599,760 shares of Bloom Technology, accounting for 14.40% of its total share capitalafter the initial public offering of stocks, and is not a controlling shareholder.
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, At present, the project is in the registration stage of China Securities Regulatory Commission, theproject status is suspended (financial report update), and the IPO follow-up process can be promoted onlyafter the financial report is updated.
V. The Company’s Outlook for Future Development
As the main body of the national economy, the manufacturing industry is the foundation of the country, aswell as the tool of the country and the foundation of the country. The “14
th
Five-Year Plan” IntelligentManufacturing Development Plan, the “14
th
Five-Year Plan” Robot Industry Development Plan, and the“Robot Plus” Application Action Implementation Plan clearly define China’s industrial planning goals in2025 and 2035, and the intelligent manufacturing equipment and robot industry usher in unprecedenteddevelopment opportunities.
Since its establishment in 1997, the Company has been committed to the revitalization and development ofthe national equipment industry for a long time. In the early days of its establishment, the Companysuccessfully developed handling robots and realized industrial application as early as 2005. The Companyhas applied industrial robot technology to the industrial automation production line of the process industry,and has independent intellectual property rights of intelligent complete sets of equipment products, in themain application areas for customers to provide strong support for large-scale industrial production, topromote the localization of major equipment has made a positive contribution. The products havesuccessfully replaced import, realizing the autonomy and controllability of the core technology of China’smajor equipment, ensuring efficient and safe operation. Over the years, the Company’s products have beenwidely used in many industries and have become the first choice for backbone enterprises in the industry.
In the 21
st
century, the rapid development of digital technologies such as 5G, industrial Internet, newmaterials, big data, cloud computing, deep learning, and artificial intelligence has provided strong supportfor the Company’s products to move from “automation” to “digitalization” and “intelligence”. The Companygrasps the opportunities, integrates advanced manufacturing and information technology, enables the digital,intelligent and green development of manufacturing industry, and extends its products from intelligentmanufacturing equipment to digital workshops and smart factories. The Company has repeatedly achievedgood results in product innovation ability, R&D system construction, and marketing work.
Looking forward to the future, the Company will adhere to market demand-oriented, innovation-driventechnology leadership, independent control to ensure the safety of core technologies, accelerate thedevelopment of intelligent manufacturing equipment and industrial service business expansion, promote theintelligent replacement of high-risk and heavy environmental manual work, achieve fewer people, unmanned,safe, efficient and green production, and create greater value for society, shareholders and employees, toachieve sustainable and high-quality development of the Company.
1.Focusing on innovation, continuing to promote the development of new quality productivity,enabling future manufacturing.
In the new round of scientific and technological revolution and industrial transformation, scientific andtechnological innovation and industrial integration development, major cutting-edge technologies anddisruptive technologies continue to emerge. Cultivating future industries has become an important strategicchoice to lead scientific and technological progress, drive industrial upgrading, open up new tracks, andshape new quality productivity.In recent years, the Company has accelerated the deep integration of advanced manufacturing andinformation technology, and in the field of intelligent manufacturing equipment, the Company has realizedthe leap from stand-alone equipment, automated production lines to digital workshops and smart factories,meanwhile, has promoted the development of the manufacturing industry to the digital, intelligent and greendirection.
In 2024, the Company achieved good results in the development of new quality productivity. In the past twoyears, the Company has made efforts to build two calcium carbide smart factories (workshops) successfullydelivered applications to customers. Calcium carbide production intelligent factory has comprehensivelyinnovated the traditional production process of calcium carbide submerged arc furnace, built the intelligentclosed-loop of “perception – decision – execution”, realized the friendly operation, production safety,efficient operation, accurate control of the whole process and efficient intelligent production, and set thebenchmark of technological change in the industry. Through the deep integration of artificial intelligencetechnologies such as machine vision, deep learning, robot control algorithms, expert control strategies, anddigital twin with 5G and industrial Internet communication technologies, the Company has successfullyapplied to the overall solution of intelligent workshops and smart factories, and has created a less humanizedand unmanned production scene to the maximum extent, promoting the development of the manufacturingindustry in the direction of efficiency, intelligence, and environmental. Relying on intelligent productiondecision-making management, the Company open up the future manufacturing model, continue to promotethe development of new quality productivity, and empower future manufacturing.
(1) Overall solution of intelligent factory.
As a leading global manufacturer, China is on the cusp of transforming into a true manufacturingpowerhouse. It is crucial to transition its development strategies, enhance economic structures, and shiftgrowth dynamics in order to foster high-quality industrial advancement. The country’s comprehensiveindustrial framework, vast manufacturing scale, and diverse application landscapes offer a fertile ground forthe robust development of novel, high-quality productivity.
As one of the core application scenarios of intelligent manufacturing, intelligent factory is the core ofpromoting the transformation and upgrading of the manufacturing industry. With deep technologyaccumulation and multidisciplinary technology integration capabilities, the Company takes intelligentproduction management decision-making system as the core to create tailored digital transformationsolutions for customers. The Company is committed to building less or even unmanned intelligent factoriesfor customers, through intelligent production management decision-making system, significantly improveproduction efficiency and intelligent manufacturing level, and promote the production process to scientific,intelligent, autonomous, economic, safe, efficient and green direction change.
Legend: Calcium carbide intelligent factory sets industry benchmark, promotes the upgrading of intelligent manufacturing industry
(2) Overall solution of post-processing intelligent manufacturing equipment for solid material.
The Company provides the leading intelligent manufacturing overall solution for solid materialpost-processing for the product application industry, integrating functional modules such as weighing,packaging, palletizing, coating, digital storage, intelligent loading, remote fault diagnosis and total/sub-unitoperation management control system, which can accurately adapt to complex post-processing applicationscenarios such as powder materials, granular materials and irregular materials. Realize the full range ofone-stop intelligent and efficient production.Through the cooperative deployment of advanced control algorithms and automation equipment, thecustomer’s production process can be optimized, the production efficiency can be significantly improved,and the manufacturing cost per unit product and the production operation risk can be reduced. At the sametime, with the help of digital technology, the overall solution can collect and analyze all kinds of data in theproduction process in real time, provide accurate basis for enterprise decision-making, promote the digitalupgrading of enterprises, enhance the market competitiveness of enterprises, and promote the industry to anew stage of intelligent and digital development.
Legend: Schematic diagram for overall solution of post-processing intelligent manufacturing equipment for solid material
(3) Intelligent manufacturing equipment and intelligent workshop solutions covering all categories ofpolycrystalline silicon.
Solar energy, as a clean, safe and reliable energy source, has great long-term development potential in theworld. China is rich in lighting resource, and the steady advancement of the national “carbon peak, carbonneutral” dual-carbon strategy has opened up a continuous market space for the development of thephotovoltaic industry and product application. In the expectation of huge market demand, the polysilicon rawmaterial field of China’s photovoltaic industry has ushered in a large-scale expansion in recent years, and theapplication of intelligent equipment has become the key to improving quality and efficiency in the industry.
Since 2019, the Company has continued to increase investment in R&D with the introduction of theindustry’s first automatic weighing and packaging products of bulk polysilicon. At present, the Company hassuccessfully built a series of product matrices covering a variety of unit combinations in multiplesubdivisions such as bulk monocrystalline silicon, bulk polysilicon and granular polysilicon. The Companyfurther integrates the unit system equipment products with the key processes such as reduction silicon rodcrushing, screening magnetic separation, AGV directional transportation, measurement and plastic packaging,and factory logistics. With the help of digital and information technology, the Company forms the overallsolution of crystalline silicon smart factory, realizing the intelligent control of the whole process fromproduction to logistics.
The Company has cooperated with GCL Group, Tongwei Group, Yongxiang Shares, Daqo Energy, XinteEnergy, Asia Silicon, Tianhong Ruike, Qinghai Lihao, Runyang Shares, Baofeng Energy, Hongyuan Energy,Xinjiang Qiya, Eastern Hope, Red Lion Semiconductor and many other well-known new energy enterprises,
forming competitiveness in the field of polysilicon intelligent manufacturing equipment in the photovoltaicindustry.
In the years to come, the Company will remain committed to the photovoltaic sector, delving deeper intotechnological R&D, and innovation. It will vigorously explore new application scenarios and broaden themarket horizons for its polysilicon intelligent manufacturing equipment and intelligent workshop solutions.
Legend: Schematic diagram of intelligent manufacturing equipment and intelligent workshop solutions forall categories of polysilicon.
(4) “Robot plus” - technology for manual substitution under high-risk, heavy and harsh working
environment of calcium carbide and other submerged arc furnaces.
In January of 2023, the Ministry of Industry and Information Technology, alongside 16 other departments,jointly released the “Robot Plus” Application Action Implementation Plan. This plan centered around 10pivotal sectors, with manufacturing being one of them, aiming to achieve breakthroughs in 100 robotictechnologies and solutions. The goal is to facilitate the implementation of over 200 advanced applicationscenarios and foster exemplary enterprises in the “robot plus” application realm.
In high-risk and challenging working environments, manufacturing enterprises face labor difficulties due tohidden production safety hazards and mismatched human resources supply. Outdated processes exacerbateissues such as high costs, elevated risks, low standards, inconsistent quality, and inadequate capacityutilization. The Company’s innovative equipment products, including furnace unloading robots, furnaceagitation robots, inspection robots, and automatic car loading machines, effectively address these industrypain points, enabling technological empowerment and improved operational efficiency.
In the field of calcium carbide sub-merged arc furnace, the Company’s self-developed high-temperaturefurnace front operation robot and its surrounding system successfully overcome many difficulties in thetraditional oven link, and achieve intelligent manufacturing with few people, unmanned, safety, efficiencyand environmental protection. This technology not only promotes the transformation of the traditional
calcium carbide production mode, reduces the cost and increases the efficiency, but also significantly reducesthe labor intensity and safety production risks of manual operations.
Legend: The calcium carbide sub-merged arc furnace field furnace unloading robots, furnace agitation robotsto replace manual work schematic diagram.
Based on the successful accumulation of technology and product applications in the calcium carbide furnacedomain, the Company continues its R&D endeavors. It is expanding the high-temperature special operationrobot technology into areas such as iron-silicon, silicon-manganese, industrial silicon furnaces, and othermineral furnaces. The Company is further advancing “robot plus” R&D, demonstration, and promotionalapplications, thereby contributing significantly to the intelligent transformation of the arc furnace industry.
(5) Overall solution of plant intelligent logistics
The intelligent logistics system of the Company takes the automatic loading machine as the core unit,integrates the visual identification system, data information interface system, logistics scheduling system,transfer and transportation system and other auxiliary equipment, which can carry out batch transfer, stacking,splitting, combination, loading and other logistics operations for a variety of bags, boxes and bulk materials,and can realize the seamless connection between production lines or warehouses and transport vehicles. Itcan be widely used in many fields of the national economy, especially in labor shortage, poor workingenvironment and other working conditions with obvious advantages, good customer feedback and hugemarket base.
Legend: Some models of automatic loading machine
2.Continue to improve the scale of intelligent equipment industry services
The Company forward-looking implementation of product service integration strategy, intelligentmanufacturing equipment industry services have become an important source of revenue and profit for theCompany. As a modern service industry led by national policies, intelligent equipment industry services playa key role in promoting the high-quality development of manufacturing. In March 2021, thirteen departments,including the National Development and Reform Commission, the Ministry of Science and Technology, andthe Ministry of Industry and Information Technology, jointly issued the Opinions on Accelerating theHigh-quality Development of the Manufacturing Service Industry, which clearly stated that by 2025, the roleof the manufacturing service industry in improving the quality and efficiency of the manufacturing industry,innovation capacity, and resource allocation efficiency will be significantly enhanced. Realize the couplingsymbiosis and integration of manufacturing industry and manufacturing service industry.
The Company’s industrial service revenue increased steadily with the growth of intelligent manufacturingequipment sales and production and operation equipment base. At the same time, the Company undertooknew large-scale production operation and maintenance service projects to further accelerate the growth ofservice revenue. The Company actively responds to the deep-seated service needs of customers and promotesthe sustained and steady growth of industrial service revenue. Multi-dimensional industrial services andproduct sales form a positive interaction, enhance customer stickiness, and effectively extend the industrialchain. Although the operating income of industrial services has reached RMB 768 million during thereporting period, compared with the huge production scale of potential customers in China, the marketpenetration rate of production integrated hosting operation and maintenance services is still low, and thefuture development potential continues to be optimistic.
3.Business Outlook in 2025
In recent years, Boshi has achieved remarkable results in the field of intelligent equipment productinnovation, market expansion and industrial services. The Company’s technological innovation drives theexpansion of multiple categories of products and expands the market application field; The Companystrengthened the construction of industrial service network, improved the service dimension, and the servicerevenue scale broke a new high year after year and setting new highs repeatedly; The Company activelycultivates and develops new quality productivity, and has made great progress in the direction ofdigitalization and intelligence; The Company’s operating performance has achieved sustained good and rapidgrowth.
In 2024, in the face of a complex and changing external environment, the Company will strive for prosperity,consolidate its foundation, cultivate future industries, pay attention to R&D investment and productinnovation, and continue to build core competitiveness.
Looking forward to 2025, the Company in the era of national industrial digital development tide, with thecompetitive advantages in the field of intelligent manufacturing equipment and industrial services, grasp themarket opportunities brought by the medium and long-term needs of enterprise intelligent transformation anddigital transformation, robot multi-scene deep application, as well as the national policy dividend ofaccelerating equipment renewal and transformation, prevention and control of business risks, and improvethe certainty of business performance. Combined with the Company’s current order size and sales marketexpectations, the Company is confident to achieve sustained and healthy development of operatingperformance.
4. Possible Risks in the Company’s Operations
(1)The risk that the R&D of intelligent manufacturing equipment and the digitalization process of theindustry do not meet expectations.
In the application field of the main products of large-scale intelligent complete sets of equipment, thecompany has the ability to provide customers with intelligent manufacturing overall solutions and intelligentfactories. As China moves from a manufacturing country to a strong country, the transformation demand fordigital workshops and intelligent factories continues to grow. According to the “14
th
Five-Year Plan”Intelligent manufacturing Development Plan, in the next period of time, intelligent manufacturing will focuson processes, equipment and data, relying on manufacturing units, workshops, factories and supply chainsand other carriers to promote the digital transformation of the manufacturing industry, network collaborationand intelligent change. By 2025, most manufacturing enterprises above designated size will realize digitalnetworking, and key enterprises in key industries will initially apply intelligence; By 2035, manufacturingenterprises above designated size will be fully digitalized and networked, and key enterprises in keyindustries will basically be intelligent. In the face of the huge market demand prospects of industrialdigitalization, if the company fails to expand new technology application fields in a timely manner, or fails toeffectively respond to, guide and meet the market demand in product development, the industrialdigitalization process is less than expected, it may miss the market dividend, bring adverse effects on theCompany’s medium and long-term development, and become one of the risk factors 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.
With the rapid development of digital infrastructure such as 5G and industrial Internet, the field of intelligentmanufacturing has ushered in unprecedented opportunities. Artificial intelligence technology not onlyprovides technical convenience for the digitization and intelligence of factories, but also determines theability and level of intelligent manufacturing in the future. Although the Company has outstandingcompetitive advantages in the field of product application, in the face of the industrial tide of artificialintelligence technology, if the company cannot deeply integrate the application of artificial intelligencetechnology based on 5G and industrial Internet in intelligent manufacturing product technology solutions, itwill restrict the speed and quality of the company's medium and long-term development, constituting one ofthe risk factors.
(3)The risk that “robot plus” and China intelligent equipment demand is less than expected.
In recent years, the state has successively issued the 14
thFive-Year Plan for the Development of IntelligentManufacturing and the Action Plan for the Application of “Robot Plus”, clearly defining the medium andlong-term development goals of the intelligent manufacturing industry. As a leading enterprise in theindustry, our company is at the forefront of domestic application fields and some of its technologicalapplications have reached international leading levels. The relevant national intelligent manufacturingindustry plans will be implemented first in the leading enterprises of various industries. Our Company’sproducts cover the top customers in application fields and face many development opportunities in the future.However, the current global economic landscape is facing many challenges. The process of globalization hasbeen hindered, trade protectionism is on the rise, and geopolitical and economic crises occur from time totime. The growth momentum of the world economy and trade is insufficient, and domestic demand urgentlyneeds to be stimulated. Some external factors may be transmitted to the domestic market, affecting thedemand for high-end intelligent manufacturing equipment in China and thereby constraining the Company’smedium and long-term performance, which constitutes one of the risk factors the company is facing.
(4)The risk that “industrial services plus” expand less than expected.
The industrial service business, as a booster for the Company’s performance growth and a buffer againstfluctuations in equipment revenue, has maintained a continuous growth trend over the years. In 2024, theindustrial service business achieved revenue of RMB 768 million, maintaining a year-on-year growth of
7.18%. From the perspective of the scale of the Company’s industrial service production and operationbusiness, although it has formed a certain revenue scale, compared with China’s huge potential capacitydemand, its market penetration rate is still at a relatively low level, and there is huge room for futuredevelopment. However, if the company fails to continuously expand its industrial service business, adapt tothe multi-level service demands of customers, or the expansion of “industrial service plus” applicationscenarios does not meet expectations, it will constitute one of the risk factors restricting the Company’smedium 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, during the reporting period, the company has successfullyimplemented and completed two demonstration application projects of calcium carbide smart factory(workshop) overall solution. At the same time, the Company actively develops special operation robots forhigh temperature environment such as ferrosilicon, silicon manganese and industrial silicon sub-merged arcfurnace, has achieved positive progress one after another. However, with the rapid development of artificialintelligence technology at present, represented by humanoid robots, which are intelligent, quick, skillful andmulti-scenario applied, explain the more far-reaching connotation and development space of robots plus.“Robot is the pearl at the top of the crown of the manufacturing industry”, if the Company cannot continue tomake progress in the field of robot plus and accelerate the promotion of technical achievements in new areasto expand the market, it is one of risk factors affecting the medium to long-term competitiveness of theCompany.
(6)The risk that the industrialization R&D project of the key technology and principle of humanoidrobot prototype does not progress as expected.
In the new round of scientific and technological revolution and industrial transformation, major cutting-edgeand disruptive technologies continue to emerge, in order to cultivate the development of new qualityproductivity, combined with the Company’s advantages in the application field of intelligent manufacturingequipment, high-temperature special operation robots and smart factories, the company signed the StrategicCooperation Framework Agreement with HGD University on August 18
th
, 2023. Jointly set up theindustrialization R&D project of humanoid robot key technology and principle prototype, and jointlypromote the relevant technical achievements and the industrialization work of future achievements.
The future industry of humanoid robots is driven by cutting-edge technologies, and the industrial investmentin related R&D is inherently risky. Humanoid robot, different from the Company’s intelligent manufacturingequipment, high-temperature furnace operation robot and other industrial fields, is a new, cutting-edge,extremely challenging field of technological innovation, therefore, the company in this direction in the futurecan achieve phased results, continuous progress, there are many uncertain risk factors:
In cooperation with HGD University, the Company has complementary advantages, multi-disciplinary andprofessional cross-participation, and has systematic, complex, phased and long-term characteristics. Whetherthe R&D can achieve the expected results and when there is great uncertainty, which constitutes one of therisk factors;
In the process of R&D of the project, the domestic and foreign humanoid robot related fields of technologyprogress, iteration is rapid, there is a great uncertainty whether the R&D principle prototype is advanced,which constitutes one of the risk factors;
If the first-generation principle prototype is launched in the future, it will inevitably face a continuousprocess of R&D and iteration. Whether the subsequent R&D can be smoothly implemented and the progressof the R&D still have great uncertainties, which constitutes one of the risk factors;
Even if the R&D results meet the expectations during the period, there is great uncertainty about whether theindustrialization application scenario can be found, whether the industrialization can be smoothly carried out,and whether the industrialization has advantages, which constitutes one of the risk factors;
There may be the possibility that the principle prototype developed is not advanced or does not have theadvantages of industrialization, cannot be industrialized, or the project R&D may fail, which constitutes oneof the risk factors;
The implementation of the project is characterized by a long-term nature and cannot have a positive impacton the Company’s performance in the short term. In the specific process of promotion, other unforeseenfactors cannot be excluded, which will affect the implementation progress of the project and constitute one ofthe risk factors;
Due to the pioneering nature of the project, it will be subject to the limitation of the level of science andtechnology in the industry. If there are key technologies to be improved in the industry as a whole, it willaffect the progress of research and development or the industrialization process, constituting one of the riskfactors.
In addition to the above risks, in this field, there are still other unforeseeable risk factors, which constituteone of the risk factors faced by the Company.
(7)The risk of technology confidentiality and unfair competition.
Technology leadership is the key element of the Company’s core competitive strategy and competitiveadvantage. The technology leading advantage of the product not only determines whether the Company canmaintain a high level of profitability for a long time, but also the foundation of the successfulimplementation of differentiated competitive strategy. The Company attaches great importance to technicalconfidentiality, by applying for intellectual property protection, strengthening legal rights protection andusing technical means to protect the safety of proprietary technology, all-round protection of enterprisetechnical security and effective prevention of related risks. However, despite the measures taken by thecompany, it still faces the risk of illegal intellectual property theft, theft of technical secrets and unfaircompetition. These risks may cause potential economic losses to the company, affect the Company’slong-term competitiveness and dominant position, and constitute one of the risk factors faced by theCompany.
VI. Financial statements
(1) Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB
| Item | Dec 31, 2024 | Jan 1, 2024 |
| Current assets: | ||
| Cash at bank and on hand | 55,996,398.59 | 332,216,413.35 |
| Financial assets held for trading | 1,934,953,566.81 | 802,248,744.33 |
| Derivative financial assets | ||
| Bills receivable | 197,170,155.60 | 273,519,045.87 |
| Accounts receivable | 1,201,119,619.90 | 1,004,337,478.08 |
| Financing receivables | 53,851,796.67 | 72,533,260.37 |
| Prepayments | 69,344,997.81 | 77,455,740.98 |
| Other receivables | 36,340,345.23 | 30,774,548.13 |
| Thereof: Interest receivable | 0.00 | 0.00 |
| Dividend receivable | 8,360,557.32 | 2,601,281.28 |
| Inventories | 2,072,436,762.83 | 2,405,309,228.52 |
| Contract assets | 156,905,007.88 | 119,436,138.29 |
| Assets held for sale | ||
| Non-current assets due within one year | 8,666,821.13 | 4,434,380.89 |
| Other current assets | 20,661,815.01 | 615,166,444.19 |
| Total current assets | 5,807,447,287.46 | 5,737,431,423.00 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 12,520,693.35 | 16,425,314.82 |
| Long-term equity investments | 523,324,767.86 | 404,005,942.77 |
| Other equity instruments investments | 61,002,054.39 | 55,443,728.57 |
| Other non-current financial assets | ||
| Investment properties | 11,072,140.54 | 11,771,642.38 |
| Fixed assets | 362,897,699.40 | 229,647,272.08 |
| Construction in progress | 2,023,251.20 | 74,985,542.78 |
| Productive biological assets |
| Oil and gas assets | ||
| Right-of-use assets | 4,223,259.80 | 4,912,571.51 |
| Intangible assets | 54,090,016.00 | 53,974,953.86 |
| Development costs | ||
| Goodwill | 401,878.10 | 401,878.10 |
| Long-term deferred expenses | 75,344.58 | 106,486.62 |
| Deferred tax assets | 44,266,405.83 | 36,471,682.14 |
| Other non-current assets | 72,004,147.13 | 23,114,349.36 |
| Total non-current assets | 1,147,901,658.18 | 911,261,364.99 |
| Total assets | 6,955,348,945.64 | 6,648,692,787.99 |
| Current liabilities: | ||
| Short-term loans | 36,873,798.71 | 23,872,075.01 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Bills payable | ||
| Accounts payable | 287,672,496.07 | 337,812,103.72 |
| Advances from customers | 96,750.00 | 96,750.00 |
| Contract liabilities | 1,806,791,270.47 | 1,763,411,436.97 |
| Employee benefits payable | 77,703,338.35 | 76,649,155.81 |
| Taxes payable | 45,232,724.27 | 20,117,689.42 |
| Other payables | 54,407,824.55 | 30,001,942.32 |
| Thereof: Interest payable | ||
| Dividend payable | 4,900,000.00 | 24,500,000.00 |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 3,296,253.38 | 2,470,313.79 |
| Other current liabilities | 126,947,921.74 | 163,555,006.18 |
| Total current liabilities | 2,439,022,377.54 | 2,417,986,473.22 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | 447,585,593.01 | 431,953,084.05 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Lease liabilities | 752,611.54 | 1,374,283.98 |
| Long-term payable |
| Long-term employee benefits payable | ||
| Provisions | 9,906,258.47 | 7,137,432.08 |
| Deferred income | 1,340,000.00 | 4,023,518.90 |
| Deferred tax liabilities | 17,190,937.90 | 16,429,627.86 |
| Other non-current liabilities | 88,916,685.57 | 172,145,404.60 |
| Total non-current liabilities | 565,692,086.49 | 633,063,351.47 |
| Total liabilities | 3,004,714,464.03 | 3,051,049,824.69 |
| Shareholders’ equity： | ||
| Share capital | 1,022,559,197.00 | 1,022,556,602.00 |
| Other equity instruments | 32,093,192.04 | 32,096,067.08 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Capital reserve | 333,197,886.86 | 236,467,353.62 |
| Less: treasury shares | 41,777,510.20 | 8,865,506.80 |
| Other comprehensive income | 28,344,422.67 | 22,252,223.39 |
| Specific reserve | 27,453,042.66 | 28,883,002.75 |
| Surplus reserve | 397,185,756.08 | 355,000,124.41 |
| General risk reserve | ||
| Retained earnings | 1,991,376,325.85 | 1,761,948,265.24 |
| Total equity attributable to shareholders of the parent company | 3,790,432,312.96 | 3,450,338,131.69 |
| Minority shareholder equity | 160,202,168.65 | 147,304,831.61 |
| Total shareholders’ equity | 3,950,634,481.61 | 3,597,642,963.30 |
| Total liabilities and shareholders’ equity | 6,955,348,945.64 | 6,648,692,787.99 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2) Balance Sheet of Parent Company
Unit: RMB
| Item | Dec 31, 2024 | Jan 1, 2024 |
| Current assets: | ||
| Cash at bank and on hand | 35,616,101.82 | 169,835,957.63 |
| Financial assets held for trading | 1,728,098,242.83 | 705,945,509.61 |
| Derivative financial assets | ||
| Bills receivable | 174,084,553.66 | 243,137,102.77 |
| Accounts receivable | 1,120,697,848.74 | 928,973,179.55 |
| Financing receivables | 44,527,080.67 | 27,958,555.18 |
| Prepayments | 69,728,931.68 | 69,555,358.51 |
| Other receivables | 36,036,592.13 | 75,073,941.10 |
| Thereof: Interest receivable | ||
| Dividend receivable | 13,460,557.32 | 52,839,189.55 |
| Inventories | 1,858,098,626.70 | 2,111,364,564.22 |
| Contract assets | 128,266,570.20 | 114,524,287.72 |
| Assets held for sale | ||
| Non-current assets due within one year | 8,666,821.13 | 4,434,380.89 |
| Other current assets | 10,424,684.77 | 607,681,665.24 |
| Total current assets | 5,214,246,054.33 | 5,058,484,502.42 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 12,520,693.35 | 16,425,314.82 |
| Long-term equity investments | 874,385,703.48 | 749,170,942.77 |
| Other equity instruments investments | 24,721,374.39 | 24,231,515.74 |
| Other non-current financial assets | ||
| Investment properties | 5,484,683.52 | 5,791,346.16 |
| Fixed assets | 183,813,531.57 | 191,493,021.03 |
| Construction in progress | 19,591.16 | 0.00 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 40,251,223.26 | 37,370,956.92 |
| Development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 75,344.58 | 106,486.62 |
| Deferred tax assets | 35,462,835.42 | 30,148,563.57 |
| Other non-current assets | 66,968,189.25 | 20,618,931.75 |
| Total non-current assets | 1,243,703,169.98 | 1,075,357,079.38 |
| Total assets | 6,457,949,224.31 | 6,133,841,581.80 |
| Current liabilities: | ||
| Short-term loans | 8,780,890.70 | 3,872,075.01 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Bills payable | ||
| Accounts payable | 453,120,039.20 | 500,594,175.64 |
| Advances from customers | ||
| Contract liabilities | 1,622,034,410.01 | 1,502,597,287.71 |
| Employee benefits payable | 56,654,254.53 | 53,301,214.79 |
| Taxes payable | 40,961,222.14 | 13,220,192.52 |
| Other payables | 52,483,457.80 | 12,339,507.40 |
| Thereof: Interest payable | ||
| Dividend payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 1,244,805.36 | 620,757.74 |
| Other current liabilities | 114,287,802.04 | 149,242,100.10 |
| Total current liabilities | 2,349,566,881.78 | 2,235,787,310.91 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | 447,585,593.01 | 431,953,084.05 |
| Thereof: Preference shares | ||
| Perpetual debts | ||
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employee benefits payable | ||
| Provisions | 8,122,017.23 | 6,115,243.65 |
| Deferred income | 1,340,000.00 | 4,023,518.90 |
| Deferred tax liabilities | 9,450,676.43 | 8,658,825.27 |
| Other non-current liabilities | 66,671,927.93 | 101,331,890.97 |
| Total non-current liabilities | 533,170,214.60 | 552,082,562.84 |
| Total liabilities | 2,882,737,096.38 | 2,787,869,873.75 |
| Shareholders’ equity： | ||
| Share capital | 1,022,559,197.00 | 1,022,556,602.00 |
| Other equity instruments | 32,093,192.04 | 32,096,067.08 |
| Thereof: Preference shares | ||
| Perpetual debts |
| Capital reserve | 331,606,192.68 | 235,710,594.29 |
| Less: treasury shares | 41,777,510.20 | 8,865,506.80 |
| Other comprehensive income | 5,613,133.77 | 5,996,554.15 |
| Specific reserve | 22,026,982.37 | 23,403,880.47 |
| Surplus reserve | 397,185,756.08 | 355,000,124.41 |
| Retained earnings | 1,805,905,184.19 | 1,680,073,392.45 |
| Total shareholders’ equity | 3,575,212,127.93 | 3,345,971,708.05 |
| Total liabilities and shareholders’ equity | 6,457,949,224.31 | 6,133,841,581.80 |
(3) Consolidated Income Statement
Unit: RMB
| Item | 2024 | 2023 |
| 1. Total revenue | 2,862,689,438.16 | 2,565,408,783.42 |
| Thereof : Operating revenue | 2,862,689,438.16 | 2,565,408,783.42 |
| 2. Total cost | 2,349,692,411.47 | 2,015,413,207.79 |
| Thereof : cost of sales | 1,906,943,198.59 | 1,635,755,326.93 |
| Taxes and surcharges | 23,433,947.56 | 16,924,224.90 |
| Selling and distribution expenses | 136,359,835.05 | 118,035,435.20 |
| General and administrative expenses | 114,851,354.76 | 96,992,703.88 |
| Research and development expenses | 157,273,955.95 | 145,882,428.99 |
| Financial expenses | 10,830,119.56 | 1,823,087.89 |
| Thereof : Interest expenses | 15,531,937.55 | 11,405,000.23 |
| Interest income | 6,523,514.38 | 10,412,922.62 |
| Add: Other income | 118,858,773.11 | 85,643,578.27 |
| Investment income ("-" for losses) | 18,006,184.17 | 26,994,068.77 |
| Thereof: Income from investment in associates and joint ventures | 635,263.10 | 8,251,046.84 |
| 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) | 10,286,593.97 | 11,606,250.52 |
| Credit impairment losses ("-" for losses) | -24,745,062.33 | -21,890,207.35 |
| Impairment losses ("-" for losses) | -19,036,360.43 | -18,740,330.69 |
| Gains from assets disposal ("-" for losses) | -391,823.66 | -5,675.99 |
| 3. Operating profit ("-" for losses) | 615,975,331.52 | 633,603,259.16 |
| Add: Non-operating income | 796,755.68 | 7,012,229.86 |
| Less: Non-operating expenses | 4,114,572.87 | 2,555,557.36 |
| 4. Profit before income tax ("-" for losses) | 612,657,514.33 | 638,059,931.66 |
| Less: Income tax expenses | 68,441,369.57 | 85,110,538.81 |
| 5. Net profit for the year ("-" for net losses) | 544,216,144.76 | 552,949,392.85 |
| (1) Classification according to operation continuity | ||
| Net profit from continuing operations(loss is stated with “-”) | 544,216,144.76 | 552,949,392.85 |
| Net profit from discontinued operations(loss is stated with “-”) | ||
| (2) Classified by ownership of the equity | ||
| Attributable to shareholders of the parent company | 524,225,526.98 | 533,591,213.86 |
| Minority interests | 19,990,617.78 | 19,358,178.99 |
| 6. Other comprehensive income, net of tax | 6,092,199.28 | 1,645,867.30 |
| Other comprehensive income attributable to shareholders of the Parent Company, net of tax | 6,092,199.28 | 1,645,867.30 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | 6,475,619.66 | 1,173,324.31 |
| 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 | 6,475,619.66 | 1,173,324.31 |
| 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 | -383,420.38 | 472,542.99 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss under the equity method | -383,420.38 | 472,542.99 |
| 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 | ||
| Other comprehensive income attributable to minority shareholders, net of tax | ||
| 7. Total comprehensive income | 550,308,344.04 | 554,595,260.15 |
| Attributable to shareholders of the parent company | 530,317,726.26 | 535,237,081.16 |
| Minority interests | 19,990,617.78 | 19,358,178.99 |
| 8. Earnings per share | ||
| (1) Basic earnings per share | 0.5161 | 0.5218 |
| (2) Diluted earnings per share | 0.5130 | 0.5190 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(4)Income Statement of Parent Company
Unit: RMB
| Item | 2024 | 2023 |
| 1. Total revenue | 2,421,603,183.89 | 2,323,098,777.41 |
| Less: cost of sales | 1,678,537,448.21 | 1,511,400,639.23 |
| Taxes and surcharges | 17,284,747.13 | 11,332,635.40 |
| Selling and distribution expenses | 125,726,418.37 | 109,655,700.28 |
| General and administrative expenses | 80,710,592.72 | 71,949,853.74 |
| Research and development expenses | 126,319,956.90 | 119,748,592.86 |
| Financial expenses | 14,186,674.64 | 7,826,833.34 |
| Thereof : Interest expenses | 18,545,128.36 | 16,236,210.73 |
| Interest income | 5,934,811.33 | 10,197,233.72 |
| Add: Other income | 93,987,588.39 | 75,962,326.92 |
| Investment income ("-" for losses) | 31,462,285.54 | 79,672,868.99 |
| Thereof: Income from investment in associates and joint ventures | 635,263.10 | 8,251,046.84 |
| Gain from derecognition of financial assets measured at amortized cost("-" for losses) | ||
| Net exposure hedging gains ("-" for losses) | ||
| Gains from changes in fair value ("-" for losses) | 8,620,740.24 | 10,150,247.04 |
| Credit impairment losses ("-" for losses) | -24,841,066.45 | -30,992,975.64 |
| Impairment losses ("-" for losses) | -12,729,525.63 | -19,356,941.41 |
| Gains from assets disposal ("-" for losses) | 1,996,590.22 | 182.60 |
| 2. Operating profit ("-" for losses) | 477,333,958.23 | 606,620,231.06 |
| Add: Non-operating income | 263,477.33 | 6,924,990.68 |
| Less: Non-operating expenses | 4,025,493.03 | 2,171,751.47 |
| 3. Profit before income tax ("-" for losses) | 473,571,942.53 | 611,373,470.27 |
| Less: Income tax expenses | 51,715,625.87 | 66,590,955.05 |
| 4. Net profit for the year ("-" for net losses) | 421,856,316.66 | 544,782,515.22 |
| Net profit from continuing operations (loss is stated with “-”) | 421,856,316.66 | 544,782,515.22 |
| Net profit from discontinued operations (loss is stated with “-”) | ||
| 5. Other comprehensive income, net of tax | -383,420.38 | -1,980,428.11 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | 0.00 | -2,452,971.10 |
| 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 | 0.00 | -2,452,971.10 |
| 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 | -383,420.38 | 472,542.99 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss under the equity method | -383,420.38 | 472,542.99 |
| 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 | 421,472,896.28 | 542,802,087.11 |
| 7. Earnings per share | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
(5) Consolidated Cash Flow Statement
Unit: RMB
| Item | 2024 | 2023 |
| 1. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 2,546,539,298.17 | 2,303,445,511.93 |
| Refund of taxes and surcharges | 84,098,905.36 | 74,693,918.54 |
| Other cash receipts relating to operating activities | 22,552,130.45 | 39,222,366.94 |
| Sub-total of cash inflows from operating activities | 2,653,190,333.98 | 2,417,361,797.41 |
| Cash paid for goods and services | 1,042,709,208.40 | 1,347,715,035.13 |
| Cash paid to employees and paid on behalf of employees | 560,925,963.46 | 513,230,975.10 |
| Payments of taxes and surcharges | 229,959,415.91 | 256,215,475.15 |
| Other cash payments relating to operating activities | 175,752,767.20 | 161,257,654.02 |
| Sub-total of cash outflows from operating activities | 2,009,347,354.97 | 2,278,419,139.40 |
| Net cash flows from operating activities | 643,842,979.01 | 138,942,658.01 |
| 2. Cash flows from investing activities | ||
| Cash received from withdrawing investments | 7,286,398,874.08 | 5,602,895,604.80 |
| Cash received from investment income | 45,270,790.84 | 31,519,842.45 |
| Net cash received from disposal of fixed assets, intangible assets and other long term assets | 739,247.88 | 239,456.02 |
| Net cash received from disposal of subsidiaries and other operating units | ||
| Other cash receipts relating to investing activities | 268,265.00 | 1,811,579.00 |
| Sub-total of cash inflows from investing activities | 7,332,677,177.80 | 5,636,466,482.27 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 100,958,579.98 | 103,285,472.54 |
| Cash paid to acquire investments | 7,831,350,000.00 | 5,704,938,000.00 |
| Net increase of mortgaged loans | ||
| Net cash paid to acquire subsidiaries and other operating units | ||
| Other cash payments relating to investing activities | 613,828.50 | 611,636.00 |
| Sub-total of cash outflows from investing activities | 7,932,922,408.48 | 5,808,835,108.54 |
| Net cash flows from investing activities | -600,245,230.68 | -172,368,626.27 |
| 3. Cash flows from financing activities | ||
| Cash received from capital contributions | 1,335,000.00 | 4,260,000.00 |
| Thereof: Cash received by subsidiaries from minority shareholders’ capital contributions | 1,335,000.00 | 4,260,000.00 |
| Cash received from borrowings | 50,350,627.74 | 28,860,286.94 |
| Other cash receipts from financing activities | 41,977,510.20 | 0.00 |
| Sub-total of cash inflows from financing activities | 93,663,137.94 | 33,120,286.94 |
| Cash repayments of borrowings | 29,000,000.00 | 27,260,000.00 |
| Distribution of dividends or profits and payments for interest expenses | 287,015,156.53 | 260,107,071.13 |
| Thereof: Cash payments for dividends or profit to minority shareholders by subsidiaries | 29,992,500.00 | 2,450,000.00 |
| Other cash payments relating to financing activities | 100,005,109.78 | 39,718,997.03 |
| Sub-total of cash outflows from financing activities | 416,020,266.31 | 327,086,068.16 |
| Net cash flows from financing activities | -322,357,128.37 | -293,965,781.22 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -36,670.74 | 1,124,228.41 |
| 5. Net increase in cash and cash equivalents | -278,796,050.78 | -326,267,521.07 |
| Add: Cash and cash equivalents at the beginning of period | 330,325,705.08 | 656,593,226.15 |
| 6. Cash and cash equivalents at the end of period | 51,529,654.30 | 330,325,705.08 |
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(6)Cash Flow Statement of Parent Company
Unit: RMB
| Item | 2024 | 2023 |
| 1. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 2,250,294,749.44 | 2,006,180,159.20 |
| Refund of taxes and surcharges | 66,262,832.61 | 68,873,667.90 |
| Other cash receipts relating to operating activities | 12,313,503.97 | 31,135,168.13 |
| Sub-total of cash inflows from operating activities | 2,328,871,086.02 | 2,106,188,995.23 |
| Cash paid for goods and services | 1,270,280,285.01 | 1,497,845,243.47 |
| Cash paid to employees and paid on behalf of employees | 221,574,731.39 | 197,427,939.12 |
| Payments of taxes and surcharges | 153,469,750.93 | 184,014,198.50 |
| Other cash payments relating to operating activities | 137,239,239.30 | 126,705,618.37 |
| Sub-total of cash outflows from operating activities | 1,782,564,006.63 | 2,005,992,999.46 |
| Net cash flows from operating activities | 546,307,079.39 | 100,195,995.77 |
| 2. Cash flows from investing activities | ||
| Cash received from withdrawing investments | 6,584,008,874.08 | 4,856,452,275.96 |
| Cash received from investment income | 99,882,880.49 | 30,136,048.51 |
| Net cash received from disposal of fixed assets, intangible assets and other long term assets | 2,153,992.40 | 189,889.53 |
| Net cash received from disposal of subsidiaries and other operating units | ||
| Other cash receipts relating to investing activities | 70,000.00 | 193,071.00 |
| Sub-total of cash inflows from investing activities | 6,686,115,746.97 | 4,886,971,285.00 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 45,658,384.99 | 39,437,083.81 |
| Cash paid to acquire investments | 7,029,963,330.00 | 5,071,758,000.00 |
| Net cash paid to acquire subsidiaries and other operating units | ||
| Other cash payments relating to investing activities | 613,828.50 | 2,741,636.00 |
| Sub-total of cash outflows from investing activities | 7,076,235,543.49 | 5,113,936,719.81 |
| Net cash flows from investing activities | -390,119,796.52 | -226,965,434.81 |
| 3. Cash flows from financing activities | ||
| Cash received from capital contributions | ||
| Cash received from borrowings | 13,082,077.74 | 3,930,286.94 |
| Other cash receipts from financing activities | 41,777,510.20 | |
| Sub-total of cash inflows from financing activities | 54,859,587.94 | 3,930,286.94 |
| Cash repayments of borrowings | ||
| Distribution of dividends or profits and payments for interest expenses | 256,279,585.31 | 257,048,129.54 |
| Other cash payments relating to financing activities | 91,268,787.32 | 8,865,506.80 |
| Sub-total of cash outflows from financing activities | 347,548,372.63 | 265,913,636.34 |
| Net cash flows from financing activities | -292,688,784.69 | -261,983,349.40 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -28,353.99 | -50,312.03 |
| 5. Net increase in cash and cash equivalents | -136,529,855.81 | -388,803,100.47 |
| Add: Cash and cash equivalents at the beginning of period | 169,828,657.63 | 558,631,758.10 |
| 6. Cash and cash equivalents at the end of period | 33,298,801.82 | 169,828,657.63 |
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
April 26
th
, 2025