HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021
（Abstract）
Ⅰ. Important Notes
This Abstract is extracted from Semi-Annual Report 2021. In order to have a full understanding of the
operating results, financial condition and future development planning of the Company, investors are
suggested to read the full report carefully on the media designated by the China Securities Regulatory
Commission (the “CSRC”). The Company’s 2021 Semi-Annual Report is prepared and published in Chinese
version, and the English version is for reference only. Should there be any inconsistency between the
Chinese version and English version, the Chinese version shall prevail.
All directors except listed below attended the Board Meeting in person for reviewing of this Semi-Annual
Report.
Name of absent director Position of absent director Reasons of absence Name of entrustee
Liu Yaojie Director Official business Zhang Fan
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 into
common stock for the report period which has been reviewed by the Board of Directors.
□Applicable√Not applicable
The Company does not plan to issue cash or equity dividends, nor to convert equity reserve into share capital
of the Company.
Indicate by check mark if preplan for preferred stocks profit distribution to shareholders for the report period
which has been reviewed and approved by the Board of Directors.
□Applicable√Not applicable
1
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
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
Secretary of the Board Securities Affairs Representative
Information
Name Chen Bo Zhang Junhui
9 Donghu Street, Concentration Zone of 9 Donghu Street, Concentration Zone of
Contact Address Yingbin Road, Harbin Development Zone, Yingbin Road, Harbin Development Zone,
Heilongjiang province, China Heilongjiang province, China
Tel +86-451-84367021 +86-451-84367021
Email ir@boshi.cn zhangjh@boshi.cn
2. Company main business during the reporting period
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous
year.
□Yes √No
Increase/Decrease over the
2021 H1 2020 H1 same period of previous
year
Operating revenue (Yuan) 1,115,555,107.33 932,632,675.43 19.61%
Net profit attributable to shareholders of
286,687,578.90 226,355,138.50 26.65%
the parent company (Yuan)
Net profit after deducting non-recurring
profit or loss attributable to shareholders of 269,730,624.10 215,012,808.81 25.45%
the parent company (Yuan)
Net cash flow from operating activities
183,443,783.69 27,095,464.08 577.03%
(Yuan)
Basic earnings per share (Yuan/share) 0.2804 0.2214 26.65%
Diluted earnings per share (Yuan/share) 0.2804 0.2214 26.65%
Weighted average return on net assets 10.56% 9.50% 1.06%
End of the current reporting Increase/Decrease over
End of previous year
period previous year end
Total assets (Yuan) 4,575,476,162.35 4,576,810,168.61 -0.03%
Total equity attributable to shareholders of
2,655,399,833.91 2,568,750,413.53 3.37%
the parent company (Yuan)
2
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
3. Number of Shareholders and Shareholding
Unit: Share
Total number of shareholders of Total number of shareholders of preferred
common stocks at the end of the 24,543 stock with resumed voting right at the end 0
reporting period of the reporting period
Top 10 shareholders
Quantity of Pledged or frozen stocks
Quantity of
Name Nature Ownership restricted
stocks Status Quantity
stocks held
Unicom Kaixing Equity Investment
Management (Zhuhai Hengqin) Limited
- Lianchuang Weilai (Wuhan)
Others 17.11% 175,007,500
Intelligent Manufacturing Industrial
Investment Partnership (Limited
Partnership)
Deng Xijun Domestic natural person 9.31% 95,206,362 71,404,772
Zhang Yuchun Domestic natural person 8.09% 82,696,357 62,022,268 Pledged 4,770,000
Wang Chungang Domestic natural person 5.61% 57,394,047 43,045,535
Harbin Institute of Technology Asset Domestic state-owned
5.00% 51,127,500
Investment Management Co. Ltd corporate
Cai Zhihong Domestic natural person 4.96% 50,677,029
Cai Hegao Domestic natural person 4.89% 50,000,000 50,000,000
Sealand Securities - SPDB - Guohai
Securities Lvyuan No. 1058 Collective Others 2.00% 20,450,000
Asset Management Plan
Cheng Fang Domestic natural person 1.51% 15,484,638
Tan Jianxun Domestic natural person 1.51% 15,432,533
Deng Xijun, Zhang Yuchun, Wang Chungang, and Cai Hegao keep concerted action
through the Concert Action Agreement and jointly control the company at the end of the
reporting period; Cai Zhihong is the son of Cai Hegao, he independently exercised
shareholder rights based on his personal wishes, he has not signed concerted action
Explanation on the above-mentioned
agreement or reached a similar agreement or arrangement with Cai Hegao, nor has other
shareholders’ affiliated relationship or
concerted action plan, they are not persons acting in concert; Cheng Fang and Tan Jianxun
concerted action
are the sponsors of shareholders. Cheng Fang is the sister of Wang Chungang 's wife. In
addition, the company is not made aware whether there is any affiliated relationship
between the above-mentioned shareholders or whether they are persons acting in concert
as defined in Administrative Measures for the Acquisition of Listed Companies.
Explanation on the shareholders that are
Not applicable
engaged in margin trading business
3
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
4. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□Applicable√Not applicable
The controlling shareholder did not change in the reporting period.
Change of the actual controller in the reporting period
□Applicable√Not applicable
The actual controller did not change in the reporting period.
5. Number of preference shareholders and shareholdings of top 10 of them
□Applicable√Not applicable
The Company had no preference shareholders in the reporting period.
6. Corporate bonds that existed on the date when this Report was authorized for issue
□Applicable√Not applicable
4
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
III. Operating Performance Discussion and Analysis
1. Company Main Businesses during the Reporting Period
(1) Main businesses and industry development status
According to the proportion of revenue during the reporting period, the Company's main businesses are
shown in the following figure:
Intelligent manufacturing equipment:
"Manufacturing is the main body of the national economy, the foundation of building the country, the
instrument of rejuvenating the country and the foundation of strengthening the country." Made in China 2025
points out that China's manufacturing industry "has an obvious gap in independent innovation ability,
resource utilization efficiency, industrial structure level, informatization degree, quality and efficiency, and
the task of transformation, upgrading and leapfrog development is urgent and arduous". The State attaches
great importance to the development of high-end equipment manufacturing industry from the strategic height,
and the development of intelligent manufacturing is a strategic task of long-term persistence, which will
"accelerate the integrated development of the new generation of information technology and manufacturing
technology and take intelligent manufacturing as the main direction of the in-depth integration of
informatization and industrialization".
The Company has been cultivating in the field of intelligent equipment for a long time, and the high-end
intelligent equipment with independent intellectual property rights has been continuously upgrading for
Chinese manufacturing, replacing imported equipment or being the first applications equipment to promote
the technological progress of related industries. China manufacturing large-scale enterprises generally have
automated production lines, but the proportion of digitalization is not high, factory data sharing is not much,
and few intelligent technologies are used. There is still a big gap between China and the United States, Japan
and Germany in respect of intelligent manufacturing development, and the overall level is low.
In the face of the historic opportunities of Made in China 2025 and the post-pandemic era and the urgent
5
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
demand for intelligent equipment and intelligent factories, the Company will concentrate on advantages,
integrate resources, accumulate competitiveness, with rich product lines and intelligent manufacturing
overall solutions, to respond and guide market demand, strive to achieve better and rapid development and
bring continuous returns to shareholders.
Industrial service:
On March 16,2021, the National Development and Reform Commission, the Ministry of Science and
Technology, the Ministry of Industry and Information Technology and the like totaling thirteen departments
jointly issued the Opinions on Accelerating the High-quality Development of the Manufacturing Service
Industry, pointing out, " Improve the efficiency of the manufacturing industry.Make use of new generation
information technologies, such as 5G, big data, cloud computing, artificial intelligence and Blockchain,
vigorously to develop intelligent manufacturing, achieve accurate and efficient matching between supply and
demand and promote the fundamental reform of the manufacturing development model and the reform of
enterprise forms."Manufacturing service industry "is an important support for improving the competitiveness
and comprehensive strength of manufacturing products, promoting the transformation and upgrading of
manufacturing industry and high-quality development. At present, China's manufacturing service industry
supply quality is not high, the degree of specialization and socialization is not enough, the role of leading the
manufacturing value chain is not obvious, and there is still a gap between the requirements of building a
modern economic system and realizing high-quality economic development."; "By 2025, the role of the
manufacturing service industry will be significantly enhanced in improving the quality and efficiency,
innovation capacity, and efficiency of resource allocation, and play a more prominent role in supporting and
leading the high-quality development of the manufacturing industry" to "realize the coupling and integration
of the manufacturing industry and the manufacturing service industry".
The production and operation management service of the Company's intelligent equipment includes
integrated industrial services for equipment operation, repair, maintenance, finished products outbound &
inbound, tranship, loading and so on. These professional work presents a trend of outsourcing. The Company
takes precautions, relying on the leading technology advantage, and continues to vigorously promote the
strategy of product and service integration. The professional, economic, high-quality and efficient service has
been recognized and praised by users, and the Company's industrial service revenue has increased year after
year. During the reporting period, the Company's operating and after-sales industrial service revenue reached
224 million Yuan, achieving a growth of 20.39% year on year. The Company's integrated industrial services
and the sales of intelligent equipment products form a benign interaction, promote each other, enhance
customer stickiness and effectively extend the industrial chain.
The Company's industrial services of intelligent equipment, on the one hand, will maintain a steady growth
with the growth of product sales and equipment stock, on the other hand, will give a positive response to the
customer's deep service demand, the service scale is expected to continue to step up, become an important
source of revenue and profit of the Company.
Environmental protection process and equipment:
The 14th Five-Year Plan takes "achieving new progress in ecological civilization construction" as one of the
6
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
main goals, including "more reasonable allocation of energy and resources, substantial improvement in
utilization efficiency, continuous reduction of the total emissions of major pollutants, and continuous
improvement of the ecological environment...".Continuing to improve environmental quality and promoting
the all-round green transformation of economic and social development provide important development
opportunities for the field of environmental protection. Current climate change that seriously threatens
human survival and development is mainly caused by carbon dioxide emissions from human activities since
the Industrial Revolution.At the 75th United Nations General Assembly in 2020, China announced that it will
strive to achieve "carbon peak" by 2030 and strive to achieve "carbon neutrality" by 2060, in the Government
Work Report of the Fourth Session of the 13th National People's Congress, it is clearly proposed to "do a solid
job in carbon peak and carbon neutrality", and relevant industries are facing major opportunities.
Industrial waste acid and acidic gas treatment and recycling project, implemented by Harbin Boao
Environmental Technology Co.,Ltd, the holding subsidiary of the Company, and its wholly-owned subsidiary
Austrian P&P Company, can collect and treat industrial waste sulfuric acid and sulfur-containing acid gases
in chemical production to produce high-purity sulfuric acid for recycling production, and to recycle and
reuse the heat energy released in the process to achieve energy saving, emission reduction, recycling,
environmental protection and economic results, that it will strive to achieve "carbon peak" ,"carbon
neutrality" emission reduction targets.
The Company will promote its research and development in the field of industrial waste sulfuric acid,
sulfur-containing acid gas in order to apply in more fields, strive to overcome the adverse impact of the
pandemic on the development of overseas market sales, enhance its sustainable development profitability.
7
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory
Post‐processingIntelligentManufacturing Post‐processingIntelligentManufacturing
Equipmentforsolidmaterial Equipmentforrubber
It is applied in the post‐processing fields for the Itisintelligentequipmentandintelligentplantoverall
powder, granular materials or irregular materials of solution, applied in production process of synthetic
petrochemical, chemical, cereals, building materials, rubberandnaturalrubberandinthefieldsofproduct
new energy, food, medicine, ports, feed, etc. (such as refining process, dewatering and drying process
crushing,screening,bagging,boxingofreducedsilicon (rubber washing, cleaning and impurity removal,
rods, etc.), providing efficient automatic weighing, dewatering, crushing and drying, etc.) and finished
packagingandpalletizingintelligentmanufacturingand product packaging process (weighing, baling,
production equipment and overall solutions of smart detecting,conveying,packagingandpalletizing,etc.)
factories
Inthefieldofpost‐processinghigh‐endequipmentfor
powderandgranularmaterialsinChinaithasobvious
advantagesandastablecompetitiveposition Complete product line, covering natural rubber and
Inthefieldofpost‐processinghigh‐endequipmentfor syntheticrubber
theirregularpolysiliconmaterials,theoriginalandfirst It is the only enterprise which can provide complete
equipment’sapplicationhaspromotedtheupgradeof large‐scalesystemsworldwide
intelligentmanufacturingintheindustry
RobotandCompleteSystemEquipment IntelligentLogistics,WarehousingSystems
(Hightemperature)Operationrobotforsubmergedarc Connecting with solid material post‐processing and
furnace and complete system solutions of serialized rubber post‐processing intelligent manufacturing
intelligent products are applied for high‐risk working equipment to realize intelligent identification,
environment as well as other special robots and outbound and inbound warehousing management,
completesystemsolutionswhichcanreplacehigh‐risk, logistics transshipment, Automatic Vehicle Loading,
harshworkingconditions,andheavymanuallabor. etc., and to help customers to build smart factory
overallsolutions
(High temperature) Operation robot for Submerged AutomaticLoadingmachinehasfirst‐moveradvantage,
ArcFurnaceanditssurroundingsystemsareinleading the market responds positively and the large‐scale
positionworldwideinthefieldofCalciumcarbide applicationhasbigpotential.
8
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Industrial Services
The industrial services, rooted in the above‐mentioned related fields of Intelligent Manufacturing
Equipment,aremainlyintegratedservice,equipmentmaintenanceandsparepartssalesandthelike
facing the operation in the application fields of Intelligent Manufacturing Equipment, After‐sales
IndustrialService,andSupplementaryIndustrialService.
Holdingtechnicalgeneticadvantages,leadingservicecapabilitiesandscaleinthefield
Energy saving, emission reduction and environmental protection process
equipment field
Industrialwastesulfuricacid,
sulfur‐containingacidgas
Collection → Catalysis →
Heatexchange → Purification
High‐puritysulfuricacidusedfor
recyclingproduction
HarbinBoaoEnvironmentalTechnologyCo.,Ltdanditswholly‐ownedsubsidiary(P&PCompany,registered
in Graz, Austria) is currently mainly engaged in the design, production, and sales of energy‐saving,
emission‐reduction and environmental protection process equipment which is represented by industrial
waste acid regeneration process and equipment. Industrial waste acid regeneration technology and
equipment collect and process industrial waste sulfuric acid and sulfur‐containing acid gas which are
produced in the customer's chemical production to generate high‐purity sulfuric acid for recycling
production,andreleaseheatenergyforrecyclingandreusing,realizingtheeffectsofenergysavingand
emission‐reduction,recyclinguses,economyandenvironmentprotectionandhelptoachievecarbonpeak
andcarbonneutralemissionreductiontargets.
Realizetheeffectsofenergysavingandemission‐reduction,recyclinguses,economy
andenvironmentprotection
9
HARBIN BOSHI AUTOMAATION CO., LTD. Semi-Annual Report 2021(Abstract）
(2)Business mode
10
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
Industrial S ——Operaation and After-salles type Inndustrial Services
Bypartiicipatinginbidddingornegootiatingbids,ttheCompanysignsintegrattedservice,eqquipmentmaintenanceservvice
agreements with ussers (which m include F film rolls sales matchhing with prooduction services), equipmment
maintennance,operattionmaintenanceandtheliketodeterminethecontenntsandmodessofservices;
Usuallyonamonthlyyorquarterlybasis,afterthheperformancceoftheserviiceorthephaasedcompletioon,theoperatting
revenueeisconfirmeddaccordingtotheagreementortheconssistentsettlemmentbasisconnfirmedwithtthecustomer;
Thesaleesmodeofspparepartsisfflexible(thecoompanyinitiatesstockingoorthecustomerinitiatesprrocurement), and
the opeerating revenue is confirmed based on the actual delivery of thee product andd the time when the revenue
confirmmationconditioonsaremet
—Supplemmentary Inndustrial Services and Misccellaneous
Indusstrial Serrvices——
Content 1: FFS Film rooll productionn enterprise
matching with industrial services (Naanjing Green
New Material Co., Lttd., Company’s holding
subsidiary) s seells FFS film rolls, plastic
auxiliaries annd the like appart from thee Company's
productionaandoperationservices;
Content2:OOthersmallreevenueswhichhdon’thave
qualificationtobeclassifieedofimportannce
Revenue connfirmation: ussually as per the contract
signedwith customer,implementtheccontractand
meet the reevenue conditions, then confirm the
operatingrevvenue
11
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
(3)Key perfformance drriving factors
The Compaany's operatinng revenue a net profiit attributable to the pareent company’s shareholders in recent
years are shhown in the f below:
Opperatingrevenuue Netprofittattributabletootheparentcoompany'ssharreholders
(RM uan) (RM Yuan)
In recent y the C p e continues to grow beetter and faaster. The main driving
factors are as follows:
①Benefitinng from the strong deemand for i manufacturinng equipmennt from the intelligent
manufacturiing upgrade in China and strong suppport from the Company’s diversified products exppansions, the
Company's intelligent m g equipment business conntinues to exxert strength.
②Represennted by the opperating roboot for submeerged arc furnnace, the proomotion and application of intelligent
equipment t replaces the manual labor in the fields of higgh-risk, severre and heavy working coonditions has
promoted thhe rapid growwth of the Coompany's oveerall performmance.
③The syneergy between industrial s and intelligent manufacturinng equipmennt and steady growth for
service revvenue improoves the Coompany's ability to resiist risks, annd enhance the Compaany's overall
performance;
④In terms of the neew business direction, i mid-20177, the energgy saving, e redduction and
environmenntal protectioon business was consoliidated in finnancial reporrt, the businness and the Company's
intelligent m ng equipmennt achieved a good synerggy in the appplication field, and entereed the return
period in 20019, bringing better perfoormance conttributions.
12
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
As shown in the figure below, tecchnological i and new prooducts constant applicatiions help to
promote the continuous growth or prrolong growth period of the Companyy.
The Compaany's intelligeent manufactturing equipmment has unddergone conttinuous technnological innnovation and
an optimizaation process of continuuous applicattion of new technologiees and new products. Cuurrently, the
Company h ability t provide u with o soluutions for smmart factoriees in the main product
application fields, which helps the C to b in a better business coompetition p in the market, and
its comprehhensive comppetitiveness c to increase.
The Compaany's future performannce growth a driving factors mainnly include:
①The prommotion of thhe overall s of s material post-proccessing intellligent manuufacturing in
different cuustomers and the duplication among d factoories bring thhe growth momentum;
②New eneergy raw materials polyssilicon produuction expannsion releasees the demannd for irreguular material
post-processing intelligeent equipmennt;
③The R&D and indusstrialization p of high-temperrature speciaal operation robots (undeer high-risk,
heavy and h workinng conditionss) in the fieldds of silicon iron, silicommanganese, inndustrial siliccon etc.;
④Promotioon and acceleerated appliccation of oveerall solutionns such as plaant intelligennt warehousiing, logistics
and loadingg;
⑤Technoloogy developmment, projecct accumulattion and inddustrial appliication of irron and steeel intelligent
manufacturiing solutionss;
⑥Phased immplementatioon and continnuous industtrialization of the overall solution of i faactories;
⑦The conttinuous growwth of indusstrial servicees and the immplementatiion of new major indusstrial service
projects in p annd operationn.
13
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
For the deetails of the above futture performmance growtth driving factors, pleaase combine the "core
competitiveeness analyssis" part of this report and the "2020 Annuual Report" outlook for the future
developmennt of the Commpany " and other relevannt contents
2. Core Commpetitiveneess Analysis
As a technnology-based enterprise, Boshi adhheres to a differentiateed competitiive strategy of leading
technology, and relies on a deep u ng of China's automatioon field and practical exxperience in
industrial a to maintain a long-term competitivve position in the field it is engagged. Boshi's
intelligent m ng equipmennt, environmmental protecction process equipmentt, and indusstrial service
businesses are effectiveely synergizzed and induustrially linkked. The bussiness scale is growing rapidly, the
profitability is enhancedd, and the commprehensive competitiveeness is stablle.
(1)Industry status
MemberofChinaa
RobotTOP10
Summit
Nationaal ViceChairmmanenterprise
Enterprisse ofIntelliggentRobot
BranchhofChina
Technoloogy MechatroniicsTechnology
Center ApplicationnAssociation
Complete
intelligent
Leading maanufacturing TOPP10Intelligennt
E e M g
Seegmentation SysstemSolutionn
field Provider
Fivve‐starstandarrd Fiivestarbrannd
certificationoff c f
N l
productafter‐sales
BSCC
(2)Leading competitiveeness of prooducts and teechnologies
Innovation is the first d force to lead the d t of an enterpprise and tecchnological leadership is
an importannt core commpetitiveness of the Commpany. The Company coontinuously i its technology
application level and teechnology reeserve capaccity, seizes new opportunnities, and e into new fields.
Through R&&D investmment, technoloogy accumulation and teechnological innovation, the Compaany has been
playing a leeading role in the field of product application for a long time, with ouutstanding teechnological
leadership a annd a competittive position in the industry.
14
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
From the perspective of intelligent equipment product line, the Company's intelligent equipment reaches
high speed, high accuracy and stable operation, which is a replacement of imported high-end equipment,
suitable for the customer production environment with high efficiency and safety production requirements. In
the domestic product application field, products and technology are at the leading level. From the perspective
of the overall solution of intelligent manufacturing, the Company integrates multi-category innovative
products with the production scenarios of manufacturing users, which can realize the overall solution of solid
materials post-processing intelligent manufacturing, help users realize the digital and intelligent
transformation of the factory, and realize intelligent manufacturing. For example, the company developed
revolutionary solutions regarding the urgent safety production demand of the calcium carbide industry. Since
the (high temperature) operation robot for submerged arc furnace has been successfully applied in the field of
calcium carbide, the Company has successively developed calcium carbide tamping furnace robot system,
inspection robot system, furnace door automatic on/off system, intelligent pot logistics system and so on. The
Company's application of the (high temperature) operation robot for Submerged arc furnace and its
peripheral systems in the field of calcium carbide takes the leading position globally; The Company
continues to develop the application of high temperature special robots in iron silicon, silicon manganese,
industrial silicon furnace and other high temperature furnace operating environment, and the phased results
have been achieved. Among them, silicon manganese discharge robot has completed the site test, the
customer has accepted and used it.
(3) Advantages of the main business structure of "intelligent manufacturing equipment" +
"environmental protection process equipment"
Through the industrial waste acid and acid gas treatment and recycling projects implemented by the holding
subsidiary Harbin Boao Environmental Technology Co., Ltd and its overseas wholly-owned P&P Company,
the Company can collect and process industrial waste sulfuric acid and sulfur-containing acid gas in
chemical production to generate high-purity sulfuric acid for recycling production, achieving the effects of
energy saving, emission reduction, environmental protection and economy.
The positive interaction and synergy between the Company's "intelligent manufacturing equipment" and
"environmental protection process equipment" are significant. In mid-2017, Harbin Boao Environmental
Technology Co., Ltd completed the acquisition of the Austrian P&P Company. After the environmental
protection business achieved financial consolidation, it continues to make important market progress. Since
2019, the environmental protection process and equipment have started the industry return period. During the
reporting period, it achieved sales revenue of RMB106 million Yuan, contributing considerable profit to the
Company. The main business structure of "intelligent manufacturing equipment" + "environmental protection
process equipment" broadens the Company's business fields, enhances the Company's business scale,
strengthens the Company's ability to resist risks and consolidates the advantage of the Company's
competition in related business fields.
(4) Competitive advantages of two-wheel drive of "intelligent equipment" + "industrial service"
The Company fully integrates product application advantage, technological leading advantage and industrial
service, actively promotes the strategy of industrial service integration and achieves rapid development. The
15
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
Company's professionaal, high-quaality and effficient induustrial servicce is the n guuarantee for
customers' continuous p a operatioon, stable annd efficient p a achieves a win-win
situation foor the Comppany and cusstomers. Durring the reporting period, the Comppany's indusstrial service
achieved revenue of RMMB 282 million Yuan, of which operrating and aftfter-sales induustrial servicces achieved
revenue of R 224 m Yuan, achieving 200.39% year-oon-year growwth, which coontributes staable profit to
the Companny.
Stableeservicerevenuee，
smooothproductsaless
f
Grasspcustomer’s
Productsalesdrrive prodductdemand
moredemandffor
informmationthrough
industrialservicces services
I
Eqquipment+
Industrial
M on Service Induustrialservice
toformamoatoof advanntagespromote
competitive commpanyproduct
advantage sales
Connectwith
custoomermoretightly
Legend: Schhematic diaggram, the possitive interacction between intelligent e annd industrial service
(5) The oveerall solution of intelligeent manufaccturing enhaances the Coompany's coompetitiveneess
Throughout the Compaany's technollogy, producct development and induustrialization process, thhe Company
enters new industries annd new fields usually witth key single unit equipmment ("pointss"); after breaakthrough in
solving induustry pain pooints, quicklly form an a prroduction line ("line"); W the accuumulation of
technology and the in-depth underrstanding of the industryy, the overalll solution ( of intelligent
manufacturiing is complleted to help users realize the upgrade to digital a intelligennt factories. This process
of technoloogical progreess from "pooint → line → surface" helps the Company to concentratte resources,
reduce techhnology deveelopment riskks, open the ceiling for industry groowth, and coomprehensivvely enhance
the Companny's core commpetitivenesss.
As shown i the figure below, commpared with single unit equipment a automattion productiion line, the
overall soluution of intellligent manuffacturing helpps the Comppany face a m potentiaal product market and be
in a better c environmentt, which can stimulate thhe potential contract vallue of a singgle customer,
which is exppected to be multiplied.
16
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Legend: Schematic diagram of the competitive environment and potential market opportunities of single unit
equipment, automation production line and overall solution of intelligent manufacturing
(6)Brand competitiveness
The Company builds brand with quality, seeks progress with technology, and wins trust with service.
Through high-quality products and efficient services, we strive to realize production automation and
intelligent manufacturing for customers and achieve win-win cooperation. The Company’s brand enjoys a
constant leading in popularity, high reputation and customer loyalty in the main domestic product application
fields. The Company pursues excellence, leads the development of intelligent equipment in the application
industry and builds up a stable and healthy customer network for a long time. At the same time, high-quality
customer resources and huge demand for intelligent manufacturing equipment have become the source of the
Company's sustainable and rapid development.
(7) Achievements in intellectual property, proprietary technology and software copyright
During the reporting period, the Company obtained 9 patents approved by the State Intellectual Property
17
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Office, including 1 invention patent and 8 utility model patents; 2 software copyrights are approved by the
National Copyright Administration. In addition to patented technology, the Company has a considerable
amount of core technical know-how that exists in the form of proprietary technology by relying on
confidentiality measures. Through the patents, proprietary technology and software copyright owned and
mastered by the Company, the Company has further consolidated its competitive advantage in the industry
and enhanced its core competitiveness.
(8) Social and economic benefits
The transformation of traditional industries with high technology is the responsibility and mission given to
technological innovation enterprises by the era. The Company's automatic vehicle loading machine which is
widely used in the national economy field and (high temperature) operation robot for submerged arc furnace
in the calcium carbide industry are of great significance to replace manual operations in high-risk or heavy
manual working conditions to achieve safe production, improve production efficiency and have a significant
economical benefit, which have a transformative impact on the production field of “3D” work scenes
(Dangerous, Dirty, Dull). The Company's large-scale intelligent manufacturing equipment can provide
one-stop solution for customers in the product application field, realize safe and efficient production for
users, fundamentally solve labor difficulties and promote the improvement of social production efficiency.
The application of these high-tech products not only achieves good social benefits, but also brings
considerable economic benefits to the enterprise at the same time.
3. Analysis of Main Business
In the first half of 2021, the Company aggregated the power and stored energy, improved technology R&D,
design and production capacity, fully responded to the market demand in the field of intelligent
manufacturing equipment, and the market upgrading demand guided by new technology products,
accelerated the depth integration of information technology and intelligent manufacturing equipment, and
actively implemented the overall solutions of intelligent factories. The Company's operating revenue and
profit indicators continue to achieve relatively better and faster growth year on year, achieving more than
half of the targeting performance after a half year passed.
During the reporting period, the Company's intelligent manufacturing equipment made great efforts to
overcome the influence of uneven structural revenue of its internal product segments, and jointly promote the
continuous growth of the Company's overall performance with the industrial service business. The Company
achieved the operating revenue of RMB 1.116 billion Yuan, increasing by 19.61% year on year, and the net
profit attributable to the owners of the parent company was RMB 287 million Yuan, increasing by 26.65%
year on year. The net cash flow generated by operating activities was RMB 183 million Yuan. The
Company's main financial indicators are stable, and maintain good profitability.
From the perspective of operating revenue and contribution gross profit, the structure proportion of the
operating revenue and gross profit contribution of the Company’s intelligent manufacturing equipment,
industrial services and environmental protection process comparing with the same period last year is shown
as follows.
18
HARBIN BOSHI AUTOMAATION CO., L Semi-Annnual Report 20021(Abstract）
OperatinggRevenue ContributionGrossProfit
(RMB0.1bbillionYuan) (RMB00.1billionYuaan)
10 4
5 2
0 0
2020H1 2021HH1 2020H1 2021HH1
Note: in the a figure, contributing g profit = operating revenue of corressponding busiiness–cost of sales
During the r perriod, the key accounting data and finaancial indicaators are listeed as follows:
Unit: Yuan
Increase/Decreease over the
Items 2021 H1 20220 H1
same period of previous year
Operating revvenue 1,115,555,1077.33 9322,632,675.43 19.661%
Operating profit 351,039,9455.53 321,758,480.60 9.110%
Total profit 350,867,7700.00 321,656,272.56 9.008%
Net profit 300,450,6822.85 2688,251,555.01 12.000%
There of:
286,687,5788.90 2266,355,138.50 26.665%
Attributable t shareholders of the parent c
Year-on-yeaar changes to major finanncial data
Unit: Yuan
Increase/Decrrease
2021 H1 20220 H1 over the same p Rationaale
of previous y
The opperating revenuue increases duue
Operating reveenue 1,115,555,107..33 9332,632,675.43 1 to the rapid growth in which o
intelliggent manufacturring equipment.
The coost of sales increeases by 32.11%
Cost of sales 686,843,468..37 5119,885,409.68 3
year-onn-year due to the continuouus
19
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
improvements in the new product
application, which lead to an increase
in improvement costs, as well as
structural adjustments in high margin
product and higher cost pressure.
Affected by the pendemic, the
expenses of base period are relatively
Selling and low. In this reporting period,
distribution 39,766,634.19 28,024,493.09 41.90% after-sales service expenses, sales
expenses staff travel expenses and business
expenses have increased compared
with the base period.
General and
administrative 49,958,002.37 43,876,315.55 13.86%
expenses
Fluctuations in exchange rate during
Finance expenses 266,085.36 515,126.29 -48.35% this period which affect exchange
profit and loss.
Income tax
50,417,087.15 53,404,717.55 -5.59%
expenses
Research and
development 33,299,584.34 30,077,506.74 10.71%
expenses
Net cash flows The year-ago data was affected by
from operating 183,443,783.69 27,095,464.08 577.03% pendemic, this period the data
activities recovers to the preferable level.
Net cash flows
from investing 368,031,503.33 327,764,454.25 12.29%
activities
Net cash flows
from financing -219,789,445.67 -186,073,340.09 -18.12%
activities
Net increase in
Affected by the big increase of net
cash and cash 329,224,058.91 170,616,302.29 92.96%
cash flows from operating activities.
equivalents
Major changes to the profit structure or sources of the company in the reporting period:
□Applicable √Not applicable
No such cases in the reporting period.
20
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Breakdown of operating revenue:
Unit: Yuan
2021 H1 2020 H1 Increase/Decrease
Proportion of Proportion of over the same period
Amount Amount
revenue revenue of previous year
Total 1,115,555,107.33 100% 932,632,675.43 100% 19.61%
Categorized by industry
Intelligent
manufacturing 727,303,592.98 65.20% 507,905,517.99 54.46% 43.20%
equipment
Environmental
protection process 106,197,100.78 9.52% 175,556,082.72 18.82% -39.51%
and equipment
Industrial service 282,054,413.57 25.28% 249,171,074.72 26.72% 13.20%
Categorized by product
Post-processing
intelligent
manufacturing 628,607,058.25 56.36% 303,487,822.61 32.55% 107.13%
equipment for solid
material
Robots and complete
31,549,557.52 2.83% 134,151,605.98 14.38% -76.48%
system equipment
Post-processing
intelligent
62,722,198.45 5.62% 36,321,454.52 3.89% 72.69%
manufacturing
equipment for rubber
Intelligent logistics,
4,424,778.76 0.40% 33,944,634.88 3.64% -86.96%
warehousing systems
Environmental
process and 106,197,100.78 9.52% 175,556,082.72 18.82% -39.51%
complete equipment
Operation and
after-sales type 224,485,684.42 20.12% 186,469,009.28 20.00% 20.39%
industrial services
Supplementary
industrial services 57,568,729.15 5.15% 62,702,065.44 6.72% -8.19%
and others
Categorized by region
Region of east China 335,550,526.31 30.08% 277,112,942.81 29.71% 21.09%
Region of south
46,834,576.23 4.20% 54,879,962.24 5.88% -14.66%
China
21
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Region of central
136,168,523.27 12.21% 14,467,163.71 1.55% 841.22%
China
Region of north
149,224,058.26 13.38% 123,589,598.52 13.25% 20.74%
China
Region of northwest
225,170,155.78 20.18% 264,654,415.64 28.38% -14.92%
China
Region of southwest
50,480,350.28 4.53% 31,041,212.03 3.33% 62.62%
China
Region of northeast
117,687,257.53 10.55% 158,623,567.18 17.01% -25.81%
China
Overseas 54,439,659.67 4.87% 8,263,813.30 0.89% 558.77%
During the reporting period, the reasons of operating revenue change are as follows:
From the industry perspective, the operating revenue of intelligent manufacturing equipment increases by
43.20% year-on-year, because of a rapid increase in delivery acceptance of this kind, which as a percentage
of total operating revenue increases to 65.20%.The operating revenue of environmental protection process
and equipment decreases obviously year-on-year, because of the delay of acceptance, and the revenue
decrease extent of this kind will narrow down obviously this year. The operating revenue of industrial
services continues to maintain progressive growth.
From the product perspective, the operating revenue of post-processing intelligent manufacturing equipment
for solid material increases by 107.13%, which as a percentage of total operating revenue amounts up to
56.36%. The revenue level is close to the total revenue of 2020. There is still a good growth potential in this
field. Affected by product acceptance progress and price adjustments, the operating revenue of robots and
complete system equipment declined sharply in reporting period. The expected revenue of this kind of
product amounts to 150 million this year. The operating revenue of post-processing intelligent manufacturing
equipment for rubber increases by 72.69% year-on-year, because of the increase in the overseas product
revenue, which caused by the fulfillment of installment and delivery acceptence of overseas products. The
operating revenue of intelligent logistics, warehousing systems will increase rapidly in the latter half of the
year due to multiple production tasks, but delayed in delivery acceptance. The operating revenue of operation
and after-sales type industrial services increases by 20.39% year-on-year, the business scale of this kind
continues to expand and the revenue continues to maintain a progressive growth trend.
From the region perspective, based on the Company's business model, the operating revenue usually varies
from period to period, which is mainly affected by demand fluctuations from region to region, as well as
Company response demands, completion of product delivery and acceptance progress.etc.
Industries, products, or regions accounting for more than 10% of company revenue or operating profit
√Applicable □Not applicable
22
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Unit: Yuan
Operating Cost of sales Gross profit
revenue increase/ increased or margin increased
Operating Gross profit
Cost of sales decrease over the decreased over or decreased over
revenue margin
same period of the same period the same period
previous year of previous year of previous year
Categorized by industry
Intelligent
manufacturing 727,303,592.98 440,751,076.55 39.40% 43.20% 58.81% -5.96%
equipment
Environmental
protection
106,197,100.78 44,490,944.15 58.11% -39.51% -31.83% -4.71%
process and
equipment
Industrial service 282,054,413.57 201,601,447.67 28.52% 13.20% 13.84% -0.41%
Categorized by product
Post-processing
intelligent
manufacturing 628,607,058.25 380,800,697.15 39.42% 107.13% 116.49% -2.62%
equipment for
solid material
Robots and
complete system 31,549,557.52 17,282,336.11 45.22% -76.48% -72.27% -8.33%
equipment
Post-processing
intelligent
manufacturing 62,722,198.45 39,545,276.90 36.95% 72.69% 92.68% -6.54%
equipment for
rubber
Intelligent
logistics and
4,424,778.76 3,122,766.39 29.43% -86.96% -83.38% -15.22%
warehousing
systems
Environmental
process and
106,197,100.78 44,490,944.15 58.11% -39.51% -31.83% -4.71%
complete
equipment
Operation and
after-sales type 224,485,684.42 153,438,000.56 31.65% 20.39% 24.10% -2.04%
industrial services
Supplementary 57,568,729.15 48,163,447.11 16.34% -8.19% -9.89% 1.58%
23
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
industrial services
and others
Categorized by region
Region of east
335,550,526.31 196,957,580.27 41.30% 21.09% 15.34% 2.92%
China
Region of south
46,834,576.23 28,280,407.92 39.62% -14.66% -0.93% -8.37%
China
Region of central
136,168,523.27 67,485,166.78 50.44% 841.22% 615.66% 15.62%
China
Region of north
149,224,058.26 84,370,436.21 43.46% 20.74% 29.40% -3.78%
China
Region of
225,170,155.78 175,593,303.65 22.02% -14.92% 18.88% -22.17%
northwest China
Region of
50,480,350.28 39,796,672.82 21.16% 62.62% 88.22% -10.73%
southwest China
Region of
117,687,257.53 61,915,521.12 47.39% -25.81% -15.60% -6.36%
northeast China
Overseas 54,439,659.67 32,444,379.60 40.40% 558.77% 770.18% -14.48%
During the reporting period, the reasons of gross profit margin change of different kinds are as follows:
Intelligent manufacturing equipment: the gross profit margin of this kind declined to 39.40% is caused by the
following two reasons. One is the level of the major business gross profit margin of base period was higher
than the historical average, which led to a high base. The other one is structural adjustments in high margin
product, as well as higher purchase pressure. From the product perspective, there is a slight decrease in the
gross profit margin of post-processing intelligent manufacturing equipment for solid material. That is
because an increase in improvement costs driven by continuous improvements in the new product
application. The gross profit margin is comparable to the same period last year exclude the impact mentioned
above.The gross profit margin of robots and complete system equipment is reduced to 45.22% due to
adjustments in terminal pricing. The overall gross profit margin of post-processing intelligent manufacturing
equipment for rubber, which is mainly made up of projects overseas, is reduced to 36.95% due to high
transportation fees overseas affected by the pandemic. The gross profit margin of intelligent logistics,
warehousing system is easily affected by the gross profit margin of specific project, due to the share of this
kind is relatively small.
The gross profit margin of environmental process and complete equipment, occurs a normal fluctuation in
this reporting period, still maintains a higher level to 58.11%.
The gross profit margin of industrial service remains stable in the reporting period excluded the benefit from
supportive policy of social insurance reduction for enterprises in stages for base period.
24
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
From the region perspective, based on the Company's business model, the operating revenue usually varies
from period to period, which is mainly affected by demand fluctuations from region to region and structural
changes of product demand, as well as Company response demands, completion of product delivery and
acceptance progress, etc. It is not a typical fluctuation of gross profit margin divided by region, please refer
to explanation of by industry and by product for details.
Where the Company’s statistical criteria for core business data are adjusted during the reporting period, the
core business data for the most recent year have been adjusted based on the statistical criteria effective as of
the end of the reporting period.
□Applicable √Not applicable
Explanation for related changes greater than 30% as compared with those in the prior year period
√Applicable □Not applicable
Please refer to the explanations above for details.
4. Analysis of Non-Core Businesses
□Applicable √Not applicable
5. Analysis of Assets and Liabilities
(1) Significant Changes in Asset Composition
Unit: Yuan
End of current reporting
End of previous year Increase/
period
Decrease
Proportion Proportion Major changes
in
Amount of total Amount of total
proportion
asset asset
Affected by cash management
Cash at bank and
443,239,516.77 9.69% 114,882,208.58 2.51% 7.18% operations, the balance of cash is
on hand
relatively larger.
Accounts
700,589,434.77 15.31% 697,718,969.34 15.24% 0.07%
receivable
Contract assets 50,760,412.89 1.11% 0.00% 1.11% Product quality guarantee
Inventories 1,439,551,241.84 31.46% 1,510,919,027.41 33.01% -1.55%
25
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Investment The real estate holding by subsidiary
6,962,586.34 0.15% 7,159,198.06 0.16% -0.01%
properties Boao Environment
Long-term equity
350,697,138.40 7.66% 344,094,650.83 7.52% 0.14%
investments
Fixed assets 227,177,794.55 4.97% 235,572,771.55 5.15% -0.18%
Construction in
4,704,986.38 0.10% 4,099,390.68 0.09% 0.01%
progress
Recognized right-of-use asset based
Right-of-use on The New Lease Accounting
608,854.80 0.01% 0.00% 0.01%
assets Sandard, which was implemented on
January 1st, 2021.
Short-term
20,000,000.00 0.44% 20,000,000.00 0.44% 0.00%
borrowings
Contract
1,362,277,620.50 29.77% 1,414,586,745.15 30.91% -1.14%
liabilities
Due to reclassification of subsidiary
Long-term Boao Environment, that is transfer
0.00% 15,000,000.00 0.33% -0.33%
borrowings current maturity of long-term bank
loans to current liabilities.
Recognized lease liabilities based on
The New Lease Accounting Sandard,
Lease liabilities 89,146.78 0.00% 0.00% 0.00%
which was implemented on January
1st, 2021.
(2) Major Assets Overseas
√Applicable □Not applicable
Measures
In the Any major
Types of Operating taken to
Nature Value Location Earnings Company’ s impairment
asset mode protect asset
net assets (%) risk or not
safety
RMB: Design, RMB:
Equity Not
Equity assets 302.6008 Graz, Austria manufacture 23.8055 10.78% No
acquisition applicable
million and sales million
(3)Assets and liabilities measured at fair value
√Applicable □Not applicable
26
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
Unit: Yuan
Profit or loss Cumulative Amount
from change fair value provided for
Opening Purchased in the Other
Item in fair value change impairment Sold in the period Closing balance
balance period changes
during the charged to in the
period equity period
Financial
assets
Financial
asset held for
trading
925,736,671.99 -2,778,859.32 1,815,859.28 1,632,250,000.00 1,994,610,000.00 560,597,812.67
(excluding
derivative
financial )
Investments
in other
35,000,000.00 7,056,000.00 14,529,684.00 42,056,000.00
equity
instruments
Sub-total of
financial 960,736,671.99 4,277,140.68 16,345,543.28 1,632,250,000.00 1,994,610,000.00 602,653,812.67
assets
Sub-total of
960,736,671.99 4,277,140.68 16,345,543.28 1,632,250,000.00 1,994,610,000.00 602,653,812.67
the above
Financial
liabilities
Note: the financial asset held for trading above-mentioned are currency fund and guaranteed bank structural
deposits for cash management of unused self-owned capital, based on the resolution of the Board of
Directors and the Board of Shareholders.
Other changes
None
Whether there were any material changes on the measurement attributes of major assets of the company
during the reporting period
□ Yes √ No
27
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
(4)Restricted asset rights as of the end of this Reporting Period
Item Book value at the end of period（Yuan） Limitation reason
Bank 's letter of guarantee
Cash at bank and on hand 550,866.28
(holding subsidiary Boao Environment)
Bank credit mortgage
Buildings 13,345,950.75
(holding subsidiary Boao Environment)
Mortgage of bank loans
Buildings 15,468,332.63
(holding subsidiary Nanjing Green)
Mortgage of bank loans
Land use rights 4,120,739.14
(holding subsidiary Nanjing Green)
Total 33,485,888.80
6. Investment Made
(1)Total investment amount
√Applicable □Not applicable
Total investment amount of the Reporting Total investment amount of the same
Change
Period ( Yuan) period of last year (Yuan)
350,697,138.40 305,683,631.57 14.73%
(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
28
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
□Applicable √Not applicable
No such cases in the reporting period.
(5)Related investment progress
①Investment in high-end medical diagnosis and treatment equipment
Celiac minimally invasive surgical robot: the celiac minimally invasive surgical robot project of Harbin Si
Zhe Rui Smart Medical Equipment Co., Ltd., which is invested and participated by the Company, currently
holds 14.06% of its equity. Electric endoscopic needle forceps (name of registration certificate) has been
approved for medical device registration issued by the State Drug Administration and obtained production
license, and the intended use is ureterolithotomy; the celiac minimally invasive (laparoscope) surgical robot
system has completed clinical trials and entered the registration application stage
Image-guided radiotherapy precise positioning: the image-guided radiotherapy precise positioning project of
Jiangsu Rayer Medical Technology Co., Ltd., invested and participated by the Company, currently holds its
16.21% equity. The project obtained the registration certificate of IGPS-O, IGPS-V image-guided
radiotherapy positioning system (belongs to the Category III Medical device) issued by the State Food and
Drug Administration in March 2016. In February 2020, the Optical Guidance Tracking System (OGTS)
developed by Rayer Medical independently received a Category III medical device registration certificate
issued by the State Drug Administration
Remote assisted minimally invasive pedicle implantation robot: the remote assisted minimally invasive
pedicle implantation robot project of Suzhou Zoezen Robot Co., Ltd., invested and participated by Suzhou
HIT-Boshi Medical Equipment Co., Ltd., a wholly-owned subsidiary of the Company, currently, the
Company holds 7.83% of its equity. The main research and development products of the project have
completed clinical trials and are in the registration review stage
The field of high-end medical diagnosis and treatment equipment project is characterized by long
research and development cycle, high barriers to enter, long product registration cycle, and large
clinical risks. There are many risk factors that cannot be determined during type testing and clinical
trials. For the registered projects, there is also a risk of 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 Equity
Investment Fund, and established Dongguan Boshi Ruidexin Robot Equity Investment Center (limited
partnership). The total investment of Boshi was RMB 60 million Yuan, accounting for 30% of the subscribed
investment of the fund. By the end of the reporting period, Boshi had received RMB 38.15 million Yuan of
project investment returns and profit distribution.
29
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
③Related situation of Bloom Technology
Shanghai Bloom Technology Inc., in which the company invests, currently has a registered capital of RMB
50 million Yuan. The Company is its single largest shareholder and non-controlling shareholder, holding
19.20% of its equity. At present, Bloom Technology's Initial Public Offering of A-shares and listing on the
main board application materials, has been officially accepted by the China Securities Regulatory
Commission. There is still uncertain whether the initial public offering of Bloom Technology shares will
finally be approved by the China Securities Regulatory Commission. The Company will timely disclose the
relevant important follow-up progress in accordance with the law and regulations.
7. Sale of Major Assets and Equity Interests
(1)Sale of major assets
□Applicable √Not applicable
No such cases in the reporting period.
(2)Sale of major equity interests
□Applicable √Not applicable
8. Analysis of Major Subsidiaries
Major subsidiaries and equity participation companies that affect the Company’s net profit by more than
10%
Unit: Yuan
Company Primary Registered Operating Operating Net profit
Company name Total assets Net assets
type business capital revenue profit
Mainly engaed in
R&D, manufacturing
and selling of chemical
Harbin Boao
and environmental
Environmental Subsidiary
process technology and 103,000,000 491,806,689.40 192,074,469.19 106,429,389.19 32,427,222.86 23,937,133.68
Technology
equipment, as well as
Co.,Ltd
related technology
development and
service.
30
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
9. Structured Bodies Controlled by the Company
□Applicable √Not applicable
10. Risks Facing by the Company and Countermeasures
(1)The risk that the R&D of intelligent manufacturing equipment and industrialization process are not as
good as expected.
The Company has the capability to provide users with overall solutions of intelligent manufacturing in the
main equipment application field of complete large scale intelligent equipment. "Manufacturing is the main
body of the national economy, the foundation of building the country, the instrument of rejuvenating the
country and the foundation of strengthening the country." China is undergoing a "transformation from big
manufacturing country to powerful manufacturing country", and the demand for digital and intelligent
factories is on the rise. In the face of demand, if the Company cannot expand the application field of new
technology in time, or the industrialization process is not expected, the Company may miss the best
opportunity to enter the new industry, which will bring an adverse impact on the medium and long-term
development of the Company and become one of the risk factors faced by the Company.
Firstly, in the technology R&D and project approval, the Company will select the field where the Company
has the technical advantages, such as on the basis of granular material heavy film (FFS) technology, the
Company conducts key research and development for powder materials to bring revolutionary powder heavy
film (FFS) equipment to the industry, and then guide customer demand and promote the technological
progress of the industry with advanced equipment. Secondly, The Company chooses the field with industry
pain points and difficult technology. Through research and development, pilot test, verification and then after
success, it will quickly establish and consolidate its technical advantages. After the key technology
breakthrough, it will accelerate the breakthrough of the whole product line to establish a first-mover
advantage for the company. Thirdly, in providing the overall solution of intelligent manufacturing, regarding
the mature non-key supporting technologies in the market, the company effectively makes use of social
resources and focuses on the research and development of core technologies, so as to accelerate the launch of
product solutions. At the same time, the Company establishes standardized modules for product solution of
intelligent manufacturing and digital factory, which will help to accelerate the replication and promotion of
product technology in different customers and industries, and effectively cope with relevant risk factors.
(2)The risk that 5G-based industrial internet and artificial intelligence technology can not be deeply applied
in the company's overall solution of intelligent manufacturing
2021 is the starting year of the 14th Five-Year Plan period, and Made in China 2025 will achieve phased
goals during the 14th Five-Year Plan period. Although the Company has a prominent competitive advantage
in the field of technology application, if the deep integration and application of 5G-based industrial Internet
and Artificial Intelligence technology cannot be used in product technology solutions in the future, it will
restrict the speed and quality of the Company's medium and long-term development and constitute one of the
risk factors.
31
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
China manufacturing large-scale enterprises generally have automated production lines, but the proportion of
digitalization is not high, factory data sharing is not much, and few intelligent technologies are used. There is
still a big gap between China and the United States, Japan and Germany in respect of intelligent
manufacturing development, and the overall level is low. After years of technical accumulation and the
diversity of product lines, the Company can provide customers with overall intelligent manufacturing
solutions in the main product application field. Intelligent manufacturing technology cannot be separated
from industrial internet technology, the application of 5G in the industrial field provides technological
convenience for the upgrading of intelligent manufacturing. From the perspective of the Company’s
resources, Lianchuang Future is the largest shareholder of the Company, and its actual controller, China
United Network Communications Group Co., Ltd., has a profound industrial and technical background in 5G
network. The industrial resources of the largest shareholder of the Company will help the Company to build
the industrial upgrade of "5G + Industrial Internet" and to expand new fields and develop new markets. At
the level of product research and development, the Company will also make full use of its own advantages
and resources to accelerate the technical reserves in the digital and intelligent manufacturing industry,
establish a dominant position in the face of competition and cope with risk factors.
(3)The risk of whether Boshi can effectively integrate its own and social resources and accelerate
technological innovation
As a technology-oriented enterprise, the Company leads the differentiated competition strategy with the
technology lead, in the field where Boshi is engaged, Boshi replaces the imported equipment or makes the
first set of innovative applications to maintain the dominant competitive position for a long time. However,
in the face of the rapid development of the industrial Internet, artificial intelligence, as well as the fierce
resource competition, the development of enterprises can not only stay on the use of internal resources. If the
Company fails to effectively integrate its own and social resources and accelerate technological innovation, it
will constitute one of the risk factors restricting the medium-and long-term development of the company.
In terms of product and technology R&D, the Company actively cooperates with social resources with the
principle of independent and controllable core technology and considering efficiency priority. For example,
in the fields of intelligent manufacturing solutions and the like, units with non-core and sufficient market
competition directly connect with social resources, select the best and integrate with the company's core
technologies, which will help accelerate the research and development process of products and technology,
and strive for market opportunities. These social resources include universities, research institutes, leading
technology enterprises in the industry or superior enterprises in the industry, making effective use of social
resources will help company to concentrate their own resources, accelerate key technological innovation and
cope with relevant risk factors
(4)The risk of unexpected demand for intelligent equipment in the post-pandemic era
With the approval of COVID-19 vaccine and the consensus on international cooperation, each country
around the world expects a rapid recovery of consumer demand in the post-pandemic period. However, as a
common disaster for mankind, COVID-19 may have a far-reaching impact on the world's political and
economic pattern for several years. As a world big manufacturing country, the demand of Made in China
cannot be boosted by the lack of global demand and adverse policies of global economic and trade. In the
32
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
field of technology product application, as a supplier of intelligent equipment and a provider of intelligent
manufacturing technology solutions, it will inevitably be restricted by this. Therefore, if the demand for
intelligent equipment in the post-pandemic period is less than expected, it will constitute a short and
medium-term risk restricting the company's future performance.
What corresponds to the risk is the opportunity. In the post-pandemic era, the structural supply of China's
manufacturing labor force is insufficient, which brings rare development opportunities for the suppliers of
the overall solution of intelligent manufacturing. On the one hand, the company promotes the replication and
implementation of mature solutions of intelligent manufacturing among different enterprises, on the other
hand, it helps customers to improve production efficiency and improve economic benefits with efficient
equipment. From the perspective of customers, it not only solves the problem of production resources
allocation, but also helps customers to concentrate resources, make efficient output and improve economic
benefits. At the same time, in the field of intelligent manufacturing equipment, the Company's industrial
service revenue scale has increased year by year, making a considerable contribution to the overall
performance of the Company. Therefore, although with the recovery of the world's manufacturing capacity in
the post-pandemic era, the world's demand for Made in China may have the risk of fluctuations, the
Company strives to win the favor of users with vibrant products, traverse through demand fluctuations and
cope with relevant risk factors.
(5) The risk of continuous performance growth
Since 2017, the Company's performance has continued to grow rapidly. In 2020, the Company's operating
revenue was RMB 1.828 billion Yuan, 2.91 times of its revenue in 2016, and its net profit attributable to
parent Company's shareholders was RMB 405 million Yuan, 3.69 times of it in 2016. The compound growth
rate is 32.37% and 46.27% in the past three years respectively. The Company has confidence to continue to
maintain steady growth in 2021. However, in the medium term, as a technology-oriented industrial enterprise,
on the basis of rapid growth for many years of performance and greatly improved business scale, whether to
maintain the sustained growth of performance is one of the medium-term risk factors that the company faces.
During the reporting period, the Company's operating revenue was RMB 1.116 billion Yuan, and the net
profit attributable to the parent company was 287 million Yuan, increasing by 19.61% and 26.65% year on
year respectively. The Company has confidence to achieve the established annual business target. Equipment
industrial enterprises have their own growth curve, in the face of intelligent industry upgrading of Made in
China, the company concentrates its own resources, at the same time, introducing external resources,
expanding the capacity of research and development, production, manufacturing, service, organizing and
implementing new production mode, meeting the market demand to accumulate growth momentum for
future growth. At the same time, the Company increases the promotion and implementation of overall
intelligent manufacturing solutions, guides customer needs and copes with relevant risks.
(6)The risk of technology confidentiality and unfair competition
Technology leading is one of the Company's important competitive strategies and competitive advantages.
The technical advantages of the product directly affect the implementation of the company's differentiated
competition strategy and the continuous profitability of the company's products. The Company attaches great
33
HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2021(Abstract）
importance to technical confidentiality, prevents relevant risks through various measures, and protects them
through legal rights protection and other means, but there may still be possibility that the company's
intellectual property rights are illegally used, the proprietary technology mastered by Boshi are illegally
stolen and the Company faces other unfair competition risks, which constitute the risk of potential economic
loss to the Company.
The Company's technology is divided into patented technology and proprietary technology, from the
perspective of technical confidentiality, each has its own advantages. The competitiveness of the enterprise
depends on the absolute strength. Only by being far ahead in the same competition, can we continue to be in
the leading competitive advantage position. In addition to the traditional technology confidentiality and
anti-improper competition means, the Company, by means of technology R&D and innovation, continues to
enhance technology reserve to keep one generation of R&D, one generation of reserve and one generation of
sales, to maintain the absolute competitive advantage in the domestic main product application field.
Therefore, the Company’s priority strategy is to actively cope with the risk of technological confidentiality
and improper competition through continuous technological innovation.
The above are the risk factors that the Company concerns, the Company actively takes measures in order to
effectively avoid and control relevant risks.
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
August 28th, 2021
34
