HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021
（Abstract）
Ⅰ. Important Notes
This Abstract is extracted from 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 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 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 into
common stock for the report period which has been reviewed by the Board of Directors.
√Applicable □Not applicable
Indicate by check mark if transferring capital reserve into common stock.
□Yes √No
The Company’s common stock profit distribution plan approved by the Board of Directors is as follows:
based on 1,022,550,000 shares issued outstanding, the company will pay a cash dividend of 2.50 Yuan (tax
included) for every 10 shares to all shareholders, and 0 bonus shares, and no increase of common stock
through capital reserve.
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
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HARBIN BOSHI AUTOMATION CO., LTD. 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
In order to speed up the planning and implementation of the construction function of the Company’s
regional headquarters and provide convenience for value investment, the Company has set up a “Securities
and Investment Affairs Office” at No. 1102, Building 2, Huijin Building, No. 55, Shangxiang Road, Huaqiao
Economic Development Zone, Kunshan City, Jiangsu Province. Welcome securities investors to inquire
about the follow-up of the investigation.
2. Company main business during the reporting period
(1)The Company’s Industry Status during the Reporting Period
①Industry overview
According to the proportion of revenue during the reporting period, the Company’s main businesses in its
industry are shown in the following figure：
Intelligent Manufacturing Equipment
Industrial Services
29%
60% Environment protection Process and
Equipment
11%
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
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.
In the face of the historic opportunities of Made in China 2025 and the urgent demand for intelligent
equipment and intelligent factories in the post-pandemic era, 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 Rooted in the Intelligent Manufacturing Equipment：
On March 16th, 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, transfer, truck loading and so on. The 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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
increased year after year. During the reporting period, the Company’s operating and after-sales industrial
service revenue exceeded RMB 500 million Yuan for the first time, achieving a growth of 23.06% year-on
-year. The overall revenue of industrial services accounted for nearly 30% of the Company’s total revenue.
Based on the Company’s outstanding achievements in the integrated development of intelligent
manufacturing equipment and industrial services, the Company was identified as “Pilot Unit of Advanced
Manufacturing and Modern Service Industry” in August 2021 by the National Development and Reform
Commission. 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
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 provides 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, 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.
Overview:
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. In terms of revenue composition, the Company’s intelligent
manufacturing equipment and industrial services rooted in intelligent manufacturing equipment accounted
for nearly 90% of the Company’s revenue. The Company’s intelligent manufacturing equipment are applied
in petrochemical, chemical, grain, building materials, new energy, food, medicine, port, feed as well as
loading and transfer scenarios for finished products in many industries, to provide customers with efficient
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
intelligent manufacturing equipment and intelligent factory overall solutions. The Company’s technology
and intelligent equipment are in the leading position in the application field of domestic industry, no same
volume competitors; in some fields, the Company products and technology application are in the world
leading level.
From the perspective of industry, Made in China large-scale enterprises generally have automated production
lines, but the proportion of digitalization is not high, factory data sharing is not much, and few use intelligent
technology. The development of intelligent manufacturing in China still has a big gap between the United
States, Japan and Germany. Under the guidance of national industrial policies, enterprises have an urgent
demand for intelligent manufacturing equipment and overall solutions of intelligent factories, and the market
demand presents long-term and sustainable characteristics with no obvious periodicity.
②Industry policy impact
In December 2021, the Ministry of Industry and Information Technology and so on eight departments jointly
issued the 14th Five-Year Intelligent Manufacturing Development Plan, put forward the following planning
goals: in 14th Five-Year and the future for a long period, promote intelligent manufacturing based on
manufacturing nature, stick to intelligent features, take the process and equipment as the core, take the data
as the base, rely on manufacturing units, workshops, plants and supply chain as carrier, build virtual-real
integrated, knowledge-driven, dynamic optimizing, safe and efficient, green and low carbon intelligent
manufacturing system, promote manufacturing digital transformation, network collaboration and intelligent
reform. By 2025, most large-scale manufacturing enterprises will realize digital networking, and backbone
enterprises in key industries will initially apply intelligence; by 2035, large-scale manufacturing enterprises
will fully popularize digital networking, and backbone enterprises in key industries will basically realize
intelligence.
In December 2021, the Ministry of Industry and Information Technology, the National Development and
Reform Commission, the Ministry of Science and Technology and so on 15 departments jointly issued The
14th Five-year Robot Industry Development Plan, put forward the following planning goals: by 2025, China
has become a global robot technology innovation source, high-end manufacturing cluster and new heights of
integrated application. Breakthroughs have been made in the number of core robot technologies and high-end
products, breakthroughs have been made in the number of core robot technologies and high-end products, the
comprehensive index of the complete equipment has reached the international advanced level, and the
performance and reliability of key parts have reached the international level of similar products. The
operating revenue of the robot industry will grow by more than 20% annually, form a number of
internationally competitive leading enterprises and a large number of specialized and special and new “Little
Giants” enterprises with strong innovation ability and good growth ability, and build 3 to 5 industrial clusters
with international influence. The density of manufacturing robots has doubled. By 2035, the comprehensive
strength of China’s robot industry will reach the international leading level, and robots will become an
important part of economic development, people’s life and social governance.
In November 2021, the Ministry of Industry and Information Technology issued the 14th Five-year Plan for
Green Industrial development, put forward the following goals: by 2025, industrial structure, mode of
production and green and low-carbon transition have made significant progress. Green and low-carbon
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
technologies and equipment have been widely applied, the efficiency of energy and resources utilization has
been greatly improved, and green manufacturing has been comprehensively improved, laying a solid
foundation for reaching a Carbon Peak in the industrial sector by 2030. Carbon emission intensity will
decrease continuously; Pollutant emission intensity will decrease significantly; Steady improvement in
Energy efficiency will improve steadily; The utilization of resources has improved significantly; The Green
Manufacturing system is improving day by day.
In November 2021, The Ministry of Industry and Information Technology issued the 14th Five-year Plan for
the In-depth Integration of Informatization and Industrialization, put forward the following goals: by 2025,
informatization and industrialization will realize integrated development in a wider range, deeper degree and
higher level, and the penetration of the new generation of information technology into all fields of
manufacturing was accelerated, the scope was significantly expanded, the degree was continuously deepened,
and the quality was greatly improved. The pace of digital transformation of manufacturing was significantly
accelerated, and the national integrated development index of the informatization and industrialization
reached 105. New models and new business forms are widely popularized; industrial digital transformation
has remarkable results; the integration support system is continuously improved; the vitality of enterprise
integration development is activated fully; and the integrated ecosystem is developed prosperously.
The year 2021 is the first year of the implementation of the 14th Five-Year Plan. The Ministry of Industry and
Information Technology and other Ministries and Commissions have issued important programmatic plans
affecting the development of the intelligent manufacturing industry. From the above planning goals, it can be
seen that the field of intelligent manufacturing equipment is facing major development opportunities. From
the Company’s long-term industrial practice in the field of intelligent equipment industry, the demand for
China’s manufacturing enterprises for intelligent equipment is in the ascendant, the field of intelligent
manufacturing equipment will continue to flourish.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
(2) Company Main Businesses during the Reporting Period
①Main products, services and application level of the Company
Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory
Post-processing Intelligent Manufacturing Post-processing Intelligent
Equipment for solid material Manufacturing Equipment for rubber
It is applied in the post-processing fields for the It is intelligent equipment and intelligent plant
powder, granular materials or irregular materials of overall solution, applied in production process of
petrochemical, chemical, cereals, building synthetic rubber and natural rubber and in the
materials, new energy, food, medicine, ports, feed, fields of product refining process, dewatering and
etc. (such as crushing, screening, bagging, boxing drying process (rubber washing, cleaning and
of reduced silicon rods, etc.), providing efficient impurity removal, dewatering, crushing and
automatic weighing, packaging and palletizing drying, etc.) and finished product packaging
intelligent manufacturing and production process (weighing, baling, detecting, conveying,
equipment and overall solutions of smart factories packaging and palletizing, etc.)
In the field of post-processing high-end equipment
for powder and granular materials in China it has
obvious advantages and a stable competitive Complete product line, covering natural rubber and
position synthetic rubber
In the field of post-processing high-end equipment It is the only enterprise which can provide
for the irregular polysilicon materials, the original and complete large-scale systems worldwide
first equipment’s application has promoted the
upgrade of intelligent manufacturing in the industry
Robot and Complete System Intelligent Logistics, Warehousing
Equipment Systems
(High temperature) Operation robot for submerged Connecting with solid material post-processing
arc furnace and complete system solutions of and rubber post-processing intelligent
serialized intelligent products are applied for manufacturing equipment to realize intelligent
high-risk working environment as well as other identification, outbound and inbound warehousing
special robots and complete system solutions management, logistics transshipment, Automatic
which can replace high-risk, harsh working Vehicle Loading, etc., and to help customers to
conditions, and heavy manual labor. build smart factory overall solutions
(High temperature) Operation robot for Automatic Loading machine has first-mover
Submerged Arc Furnace and its surrounding advantage, the market responds positively and the
systems are in leading position worldwide in the large-scale application has big potential.
field of clcium carbide
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Industrial Services
The industrial services, rooted in the above-mentioned related fields of Intelligent
Manufacturing Equipment, are mainly integrated service, equipment maintenance and spare
parts sales and the like facing the operation in the application fields of Intelligent Manufacturing
Equipment, After-sales Industrial Service, and Supplementary Industrial Service.
Holding technical genetic advantages, leading service capabilities and scale in the field
Energy saving, emission reduction and environmental protection process
equipment field
Industrial waste sulfuric acid,
sulfur-containing acid gas
Collection → Catalysis →
Heat exchange → Purification
High-purity sulfuric acid
used for recycling
production
Harbin Boao Environmental Technology Co.,Ltd 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, and release heat energy
for recycling and reusing, realizing the effects of energy saving and emission-reduction, recycling
uses, economy and environment protection and help to achieve carbon peak and carbon neutral
emission reduction targets.
Realize the effects of energy saving and emission-reduction, recycling
uses, economy and environment protection
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
②Business mode
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Industrial Services——Operation and After-sales type Industrial Services
By participating in bidding or negotiating bids, the Company signs integrated service, equipment
maintenance service agreements with users (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
Company shall 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 the revenue confirmation conditions are met
Industrial Services——Supplementary Industrial Services and Miscellaneous
Content 1: FFS Film roll production enterprise
matching with industrial services (Nanjing
Green New Material Co., Ltd., Company’s
holding subsidiary) separately sells FFS film
rolls, plastic auxiliaries and the like apart from
the Company’s production and operation
services;
Content 2: Other small revenues which don’t
have qualification to be classified of importance
Revenue confirmation: usually as per the
contract signed with customer, implement the
contract and meet the revenue conditions, then10
confirm the operating revenue.
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
③Key performance driving factors
The Company’s operating revenue and net profit attributable to the parent company’s shareholders in recent
years are shown in the figure below:
Operating revenue Net profit attributable to the parent company’s shareholders
(RMB 0.1 billion Yuan) (RMB 0.1 billion Yuan)
25
21.13 6
4.90
20 18.28 5
4.05
14.60
15 4
3.07
9.16 3
10 7.88
1.82
2 1.30
5
1
0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
In recent years, the Company’s performance continues to grow better and faster. The main driving
factors are as follows:
①Benefiting from the strong demand for intelligent manufacturing equipment from the intelligent
manufacturing upgrade in China, the Company’s intelligent manufacturing equipment business continues to
exert strength;
②The promotion and application of intelligent equipment for manual substitution in the field of high-risk,
harsh, and heavy working conditions, represented by (high temperature) operation robot for submerged arc
furnace and successful development and application of post-processing intelligent equipment for solid
materials regarding polysilicon in the field of new energy enriched the Company’s product multi-category
expansion field, and effectively promoted the rapid growth of the Company’s overall performance;
③The synergy between industrial services and intelligent manufacturing equipment and steady growth for
service revenue improve the Company’s ability to resist risks, and enhance the Company’s overall
performance;
④Since mid-2017, the energy saving, emission reduction and environmental protection business report was
consolidated, bringing a very good supplement to the Company’s intelligent manufacturing equipment
business.
As shown in the figure below, technological innovation and new product’s development, application and
expansion help to promote the continuous growth or prolong continuous growth period of the Company.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
The Company’s intelligent manufacturing equipment has undergone continuous technological innovation and
an expansion process of continuous application of new technologies and new products. Currently, the
Company has ability to provide users with overall solutions for intelligent factories in the main product
application fields, which helps the Company to be in a better business competition pattern in the market, and
its comprehensive competitiveness continues to increase.
The Company’s future performance growth and driving factors mainly include:
① The promotion of the overall solutions of post-processing intelligent manufacturing for solid material
between different customers and the replication of the growth momentum brought by different factories;
② New energy raw materials polysilicon production expansion releases the demand for post-processing
intelligent equipment for irregular materials, and the Company’s vertical R&D expands in the field of new
energy raw material polysilicon；
③ The application of FFS (Form-Fill-Seal) post-processing intelligent manufacturing equipment for solid
materials in the field of PVC and building materials；
④ With the technology accumulation in fine chemicals industry and the acceleration of industry application
and imported substitution, the demand for intelligent manufacturing equipment continues to enlarge in the
field of fine chemicals;
⑤ R&D, pilot application and expansion of unmanned plant facing calcium carbide production link;
⑥R&D, application and expansion of high-temperature special operation robots (under high-risk, heavy and
harsh working conditions) in the field of ferrosilicon, silicon, manganese and industrial silicon;
⑦Promotion and accelerating application of overall solutions such as intelligent warehousing, logistics and
truck-loading system for a wide range of large-scale enterprises in the national economy;
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
⑧Phased implementation and continuous industrialization of overall solutions of intelligent factory；
⑨Technology development, project accumulation and industrialization application of iron and steel
intelligent manufacturing solutions；
⑩The continuous growth of Industrial Services and new undertaking industrial service projects of
production and operation has brought a large increase in the implementation.
The mentioned above are the details of the future performance growth driving factors, please combine the
“Core Competitiveness Analysis” part of this report as well as the “The Company’s Outlook for Future
Development”, and other relevant contents.
(3)Core Competitiveness Analysis
As a technology-based enterprise, Boshi adheres to a differentiated competitive strategy of leading
technology, and relies on a deep understanding of China’s automation field and practical experience in
industrial applications to maintain a long-term competitive position in the field in which it is engaged.
Boshi’s intelligent manufacturing equipment and industrial service businesses are effectively synergized and
optimally linked, supplemented beneficially by environmental protection process equipment. The business
scale is growing rapidly, the profitability continues to improve, and the comprehensive competitiveness is
stable.
①Industry status
The Company has a solid competitive advantage in the field of intelligent manufacturing equipment, and its
main product and technology has been playing a leading role for a long time in the domestic product
application field, and has been recognized by the industry.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Member of
China Robot
TOP10 Summit
National Pilot unit for
National Integrated Development
Enterprise of Advanced
Manufacturing and
Technology Center Modern service industry
Complete The 7th China’s top
Leading
Enterprise in
intelligent 100 most valuable
manufacturing companies to
Segmentation
invest in
field equipment
TOP10
Intelligent
Five-star standard
certification of NECAS
Manufacturing
national product System Solution
after-sales Provider
Five star brand
certification of
BSCC
②Leading competitiveness of products and technologies
Innovation is the first driving force to lead the development of an enterprise and technology-leading is an
important core competitiveness of the Company. The Company continuously improves its technology
application level and technology reserve capacity, seizes new opportunities, and expands 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 the industry.
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 scenario 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.
In the field of sub-merged arc furnace, In view of the urgent demand of safety production and manual
substitution in the calcium carbide industry, the Company has successfully developed and applied subversive
(high temperature) furnace operation robot to traditional production based on industrial robot technology, In
addition, calcium carbide tamping furnace robot system, furnace door automatic switch system and other
peripheral systems have been developed to help users achieve manual substitution under high-risk and heavy
working conditions, and accumulate technical experience for the next realization of unmanned factories in
the field of sub-merged arc furnace production of calcium carbide. Currently, the Company (high
temperature) furnace operation robot and peripheral systems are in the leading around the world in the field
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
of calcium carbide application. 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.
On March 24th, 2022, the Company received a notice from the High-tech Research and Development Center
of the Ministry of Science and Technology on the comprehensive performance evaluation conclusion of the
research and development and demonstration application project of sub-merged arc furnace robot system for
calcium carbide under the national key research and development program. The comprehensive performance
evaluation conclusion of the research and development and demonstration application project of sub-merged
arc furnace robot system for calcium carbide led by the Company was passed, with a score of 92.4 (Grade A)
and the performance level is excellent. Being able to undertake “National Key Research and Development
Projects” is the national recognition of the Company’s technological innovation strength; The Company has
passed the project acceptance with excellent results, which is the verification and interpretation of its own
scientific and technological innovation ability. In the field of calcium carbide smelting operation, with the
Company’s large-scale application of calcium carbide smelting operation robot to replace the manual
operation under high-risk and heavy working conditions, it has realized the long-cherished wish and
responsibility of transforming traditional industries with high-technology.
③Performance-driven dual engines of "intelligent equipment" + "industrial service"
The Company fully integrates product application advantage, technological leading advantage and industrial
service, actively promotes the strategy of products and service integration and service business achieves
rapid development. The Company’s professional, high-quality and efficient industrial service is the necessary
guarantee for customers’ continuous production and operation, stable and efficient production, and achieves a
win-win situation for the Company and Customers.
Stable service
revenue， smooth
product sales
fluctuations
Grasp customer’s
Product sales drive
product demand
more demand for information through
industrial services services
Intelligent
Equipment +
Industrial
Mutual promotion to Service Industrial service
form a moat of advantages promote
competitive company product
advantage sales
Connect with
customer more tightly
Legend: Schematic diagram, the positive interaction between intelligent equipment and industrial service
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
In August 2021, the Company was identified by the National Development and Reform Commission as the
National “Pilot Unit for Advanced Manufacturing Integrated Development and Modern Service Industry",
becoming one of the few leading enterprises of “Two Industries Integration” in the country. This award is
a recognition and incentive for the Company to develop the “Product and Service Integration” strategy
prospectively and actively implement this strategy for a long time. During the reporting period, the
Company’s industrial services achieved revenue of RMB 615 million Yuan, among which the operation and
after-sales Industrial Services achieved revenue of RMB 511 million Yuan, 23.06% increase year-on-year.
“Intelligent equipment”+ “industrial services” constitute a performance-driven dual engine.
④The overall solution of intelligent manufacturing accelerates the Company’s competitiveness
Throughout the Company’s technology, product development and industrialization process, the Company
enters new industries and new fields usually with key single unit equipment (“points”); after breakthrough
in solving industry pain points, quickly form an automated production line (“line”); With the accumulation
of technology and the in-depth understanding of the industry, the overall solution (“surface”) of intelligent
manufacturing is completed to help users realize the upgrade to digital and intelligent factories. This process
of technological progress from “point → line → surface” helps the Company to concentrate resources,
reduce technology development risks, open the ceiling for industry growth, and comprehensively enhance
the Company’s core competitiveness.
As shown in the figure below：
Single unit sales (“point”), it is inevitable to face large competition, small market space, and the project
potential contract amount is limited;
The complete equipment sales (“line”), the competitive environment improves, the competitive pressure
decreases, the market space increases, and the potential contract amount is effectively enlarged;
The overall solution of intelligent manufacturing (“surface”), limited competitors, strong competitiveness,
market space and potential contract amount is expected to multiply.
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HARBIN BOSHI AUTOMATION CO., LTD. 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
⑤Brand 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, cooperative and win-win customer network for a long time. At the same time,
high-quality customer resources and huge potential demand for intelligent manufacturing equipment is the
source of the Company’s sustainable and rapid development.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
⑥ Achievements in intellectual property, proprietary technology and software copyright
During the reporting period, the Company obtained 62 patents approved by the State Intellectual Property
Office, including 7 invention patent and 55 utility model patents; 8 software copyrights are approved by the
National Copyright Administration. In addition to patent 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. The patents, proprietary technology and software copyright owned and mastered by
the Company is the Company’s significant core competitiveness.
⑦Social 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 have transformative impact on replacing manual operations in high-risk or
heavy manual working conditions to achieve safe production, improve production efficiency, improve the
capacity utilization rate due to standard operations and enhance the enterprise efficiency significantly. The
Company’s large-scale intelligent manufacturing equipment and intelligent factory technology can provide
one-stop solution to save more resources and realize safe and efficient production for the customers,
fundamentally solve the problem of structural labor gap for customers 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 Company at the same time.
3. Key Financial Information
(1) Key accounting data and financial indicators in the past three years
Unit: RMB Yuan
Increase/decrease of
2021 2020 2019
2021 over 2020
Operating Revenue 2,112,954,813.09 1,827,912,892.55 15.59% 1,459,741,076.77
Net profit attributable to parent
490,327,299.72 405,370,652.33 20.96% 307,106,182.72
company’s shareholders
Net profit after deducting non-recurring
profit or loss attributable to 459,328,151.59 375,832,168.49 22.22% 279,151,858.98
shareholders of the parent company
Net cash flow from operating activities 399,773,130.75 147,006,474.65 171.94% 352,391,698.09
Basic earnings per share (Yuan/share) 0.4795 0.3964 20.96% 0.3003
Diluted earnings per share (Yuan/share) 0.4795 0.3964 20.96% 0.3003
Weighted average return on equity 18.02% 16.83% 1.19% 14.17%
Increase/decrease of
As of Dec.31, 2021 As of Dec.31, 2020 As of Dec.31, 2019
2021 over 2020
18
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Total assets 4,901,945,419.82 4,576,810,168.61 7.10% 4,041,154,116.28
Total equity attributable to shareholders
2,879,793,106.39 2,568,750,413.53 12.11% 2,290,352,360.75
of the parent company
(2) Key accounting data by quarter
Unit: RMB Yuan
First quarter Second quarter Third quarter Fourth quarter
Operating Revenue 546,281,751.47 569,273,355.86 545,964,086.79 451,435,618.97
Net profit attributable to parent company’s
149,917,543.44 136,770,035.46 135,146,051.15 68,493,669.67
shareholders
Net profit after deducting non-recurring profit
or loss attributable to shareholders of the 140,396,126.34 129,334,497.76 133,870,923.50 55,726,603.99
parent company
Net cash flows from operating activities 106,876,043.79 76,567,739.90 122,179,134.27 94,150,212.79
Indicate by check mark if any material difference between the above financial indicators or their summations
and those which have been disclosed in the Company’s Quarterly or Interim report.
□Yes √No
19
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
4. Shareholders Information
(1)Total number of common shareholders and preference shareholders with voting rights recovered
and top ten common shareholders
Unit: Share
Total number of
Total number of Total number of
shareholders of
Total number of shareholders of shareholders of preferred
preferred stock
shareholders of common common stocks at stock with resumed voting
24,693 23,255 with resumed 0 0
stocks at the end of the previous month-end rights at previous
voting right at the
reporting period of this report’s month-end of this report’s
end of the
disclosure disclosure
reporting period
Top 10 shareholders
Quantity of Pledged or frozen stocks
Owners Quantity of
Name Nature restricted stocks
hip stocks Status Quantity
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 37,500,000
Bank of China Co., Ltd.-China
Merchant Ruiwen Hybrid Securities Others 2.25% 22,971,483
Investment Fund
Hong Kong Securities Clearing
Overseas corporate 1.57% 16,102,189
Company Ltd. (HKSCC)
Tan Jianxun Domestic natural person 1.51% 15,432,533
20
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Deng Xijun, Zhang Yuchun, Wang Chungang, and Cai Hegao keep concerted action through the Concerted
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
Explanation on the above-mentioned
concerted action 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; Tan Jianxun are the sponsors of shareholders. In
concerted action
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 engaged in margin trading business Not applicable
（In case ）
(2) The total number of preferred shareholders and the top 10 preferred shareholders’ shareholdings
of the Company
□Applicable √Not applicable
During the reporting period, the Company did not have preferred stockholders holding shares.
(3) The ownership and controlling relationship between the Company and its actual controller in form
of diagram
5. Bonds
Does the Company have any corporate bond that are publicly issued and listed on the stock exchange and
that are not matured or not fully redeemed as of the approved issuance date of the Annual Report?
□Yes √No
21
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
III. Management Discussion and Analysis
1.Main Businesses Analysis
(1)Overview
In 2021, the market demand of the Company’s main intelligent manufacturing equipment product application
field presented a thriving scene, and the market sales achieved the best performance in history. Under the
industrial opportunity of the integration of national advanced manufacturing industry and modern service
industry, the Company’s industrial service business has accelerated its growth. In terms of product
manufacturing and delivery, the Company overcame the adverse impact of pandemic prevention and control
repeatedly on product installation, delivery and revenue confirmation in the fourth quarter of 2021, and
achieved high-quality growth throughout the year.
During the reporting period, the Company achieved operating revenue of RMB 2.113 billion Yuan, increased
15.59% year-on-year, net profit attributable to the owner of the parent company was RMB 490 million Yuan,
increased 20.96% year-on-year, weighted average return on equity (ROE) was 18.02%, the best level in
recent ten years, and the competitiveness of the Company’s products and services were continuously
enhanced.
From the perspective of revenue composition, the Company’s revenue and contribution gross profit ratio
structure of intelligent manufacturing equipment, industrial services, environmental protection process
equipment are shown in the figure below.
Operating Revenue Contribution Gross Profit
(RMB 0.1 billion Yuan) (RMB 0.1 billion Yuan)
Note: in the above figure, Contributing Gross profit= Operating revenue of corresponding business – Operating cost, the contribution
gross profit does not consider the impact of profit and loss of minority shareholders.
As can be seen from the figure above, intelligent manufacturing equipment and industrial services rooted in
intelligent manufacturing equipment have accounted for 89% of the Company’s overall revenue, after
deducting 49% of the profit and loss of minority shareholders in the business of environmental protection
process equipment, “intelligent manufacturing equipment + industrial services ”contribute nearly 90% to
the profit. In recent years, with the urgent industrial demand for industrial upgrading of intelligent
22
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
manufacturing and the strong demand for intelligent manufacturing equipment by large-scale industrial
enterprises in the post-epidemic era, the Company’s “intelligent manufacturing equipment + industrial
services ”will usher in a golden period of vigorous development.
During the reporting period, the main operating data and main financial indicators achieved by the Company
are listed as follows
Unit: RMB Yuan
Increase/Decrease
over the same
Items 2021 2020 2019
period of
previous year
Operating revenue 2,112,954,813.09 1,827,912,892.55 15.59% 1,459,741,076.77
Operating profit 606,367,149.42 556,684,894.87 8.92% 383,204,776.81
Total profit 602,667,181.89 554,440,282.15 8.70% 382,962,162.40
Net profit 519,891,603.82 469,840,952.97 10.65% 327,722,429.53
There of: Attributable to shareholders of the
490,327,299.72 405,370,652.33 20.96% 307,106,182.72
parent company
(2)Operating revenue and cost of sales
① Breakdown of operating revenue
Unit: RMB Yuan
2021 2020
Increase/Decrease
Proportion of over the same period
Amount Amount Proportion of
revenue of previous year
revenue
Total 2,112,954,813.09 100% 1,827,912,892.55 100% 15.59%
Categorized by industry
Intelligent manufacturing
1,266,408,937.97 59.94% 983,894,516.21 53.83% 28.71%
equipment
Industrial service 615,136,150.55 29.11% 569,072,702.79 31.13% 8.09%
Environmental protection process
231,409,724.57 10.95% 274,945,673.55 15.04% -15.83%
and equipment
Categorized by product
23
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Post-processing intelligent
manufacturing equipment for 1,076,067,947.76 50.93% 663,831,653.87 36.32% 62.10%
solid material
Robots and complete system
71,266,194.64 3.37% 242,373,926.57 13.26% -70.60%
equipment
Post-processing intelligent
manufacturing equipment for 85,341,631.07 4.04% 40,191,157.73 2.20% 112.34%
rubber
Intelligent logistics, warehousing
33,733,164.50 1.60% 37,497,778.04 2.05% -10.04%
systems
Operation and after-sales type
510,764,252.99 24.17% 415,058,707.14 22.71% 23.06%
industrial services
Environmental process and
231,409,724.57 10.95% 274,945,673.55 15.04% -15.83%
complete equipment
Supplementary industrial
104,371,897.56 4.94% 154,013,995.65 8.42% -32.23%
services and others
Categorized by region
Region of east China 920,045,613.84 43.54% 520,514,341.35 28.48% 76.76%
Region of south China 80,463,697.92 3.81% 87,108,311.82 4.77% -7.63%
Region of central China 68,402,243.85 3.24% 27,274,693.28 1.49% 150.79%
Region of north China 272,848,423.22 12.91% 283,436,134.24 15.51% -3.74%
Region of northwest China 419,504,329.00 19.85% 585,780,300.48 32.05% -28.39%
Region of southwest China 88,684,181.22 4.20% 77,818,743.33 4.26% 13.96%
Region of northeast China 198,464,281.36 9.39% 227,495,244.01 12.44% -12.76%
Overseas 64,542,042.68 3.06% 18,485,124.04 1.00% 249.16%
Categorized by distribution model
Direct sales 2,112,954,813.09 100.00% 1,827,912,892.55 100.00% 15.59%
During the reporting period, the changes of the Company's operating income are described as follows:
During the reporting period, by industry, “intelligent manufacturing equipment” business continued to
maintain rapid growth, increased to 60% of the Company’s overall revenue; “industrial service” rooted in
intelligent manufacturing equipment increased stably, especially “operation and after-sales service” exceeded
500 million, achieving a year-on-year growth of 23.06%, “industrial services” accounted for nearly 30% of
the overall revenue; “Intelligent manufacturing equipment” + “industrial service” accounted for nearly 90%
of the overall revenue. Environmental protection process and equipment revenue fell 15.83% year-on-year,
accounting for slightly more than 10% of the Company’s overall revenue.
By products, in the intelligent manufacturing equipment, “post-process intelligent manufacturing equipment
24
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
for solid materials” achieved 62.10% strong growth, its revenue accounted for more than half of the
Company’s overall revenue, still has great potential; “post-process intelligent manufacturing equipment for
rubber” growth doubled, its revenue reached nearly RMB100 million Yuan: the installation, acceptance and
delivery of “robot and complete system equipment” and “intelligent logistics and warehousing system” were
affected by multiple waves of pandemic prevention and control in the fourth quarter, and the revenues
decreased by different margins compared with last year. The demand and product orders in these two
businesses are strong and will have a good performance in the future. “Supplementary industrial services and
others” are mainly derivative business of the Company’s industrial service business. In addition to the
Company’s industrial services of production and operation, the business of independent sales of FFS film
roll and plastic additives accounted for less than 5%, the profit level is not high, and its revenue fluctuations
are not important to the Company.
The regional data in the above table are subject to the comprehensive influence of product characteristics and
customer demand fluctuations in different regions as well as product delivery differences in different regions,
which may result in significant changes in sales revenue in different regions in each period, and such
changes are not representative and persistent. In terms of data, during the reporting period, among the
product sales data by regions, east China, north China, northwest China and northeast China contributed the
biggest revenue in the reporting period.
②Industries, products, regions or distribution model accounting for more than 10% of company revenue or
operating profit.
√Applicable □Not applicable
Unit: RMB 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
1,266,408,937.97 763,363,179.49 39.72% 28.71% 36.73% -3.54%
equipment
Industrial service 615,136,150.55 437,406,807.97 28.89% 8.09% 7.36% 0.48%
Environmental protection
231,409,724.57 102,641,614.88 55.65% -15.83% 8.26% -9.87%
process and equipment
Categorized by product
Post-processing intelligent
manufacturing equipment for 1,076,067,947.76 654,455,624.93 39.18% 62.10% 63.17% -0.40%
solid material
Robots and complete system 71,266,194.64 35,386,551.05 50.35% -70.60% -67.70% -4.45%
25
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
equipment
Post-processing intelligent
manufacturing equipment for 85,341,631.07 50,587,613.22 40.72% 112.34% 90.34% 6.85%
rubber
Intelligent logistics,
33,733,164.50 22,933,390.29 32.02% -10.04% 8.81% -11.77%
warehousing systems
Operation and after-sales type
510,764,252.99 349,214,950.50 31.63% 23.06% 27.37% -2.31%
industrial services
Environmental process and
231,409,724.57 102,641,614.88 55.65% -15.83% 8.26% -9.87%
complete equipment
Supplementary industrial
104,371,897.56 88,191,857.47 15.50% -32.23% -33.81% 2.02%
services and others
Categorized by region
Region of east China 920,045,613.84 523,775,581.82 43.07% 76.76% 66.00% 3.69%
Region of south China 80,463,697.92 52,359,256.77 34.93% -7.63% 10.23% -10.54%
Region of central China 68,402,243.85 43,748,519.54 36.04% 150.79% 125.55% 7.16%
Region of north China 272,848,423.22 168,487,686.20 38.25% -3.74% 2.72% -3.88%
Region of northwest China 419,504,329.00 307,998,705.65 26.58% -28.39% -2.56% -19.46%
Region of southwest China 88,684,181.22 65,883,324.82 25.71% 13.96% 27.41% -7.84%
Region of northeast China 198,464,281.36 101,719,500.04 48.75% -12.76% -21.98% 6.06%
Overseas 64,542,042.68 39,439,027.50 38.89% 249.16% 148.33% 24.81%
Categorized by distribution model
Direct sales 2,112,954,813.09 1,303,411,602.34 38.31% 15.59% 22.90% -3.67%
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
During the reporting period, the changes in Company’s gross profit rate of various businesses are described
as follows:
Intelligent manufacturing equipment: as the gross profit rate of the base period is higher than the historical
average, the gross profit rate of intelligent manufacturing equipment during this reporting period has returned
to 39.72%. From its internal structure, the gross profit rate of post-processing intelligent manufacturing
equipment for solid material is basically stable year-on-year; Robots and complete system equipment are
adjusted by terminal pricing, and the gross profit rate dropped to 50.35%, which is still at a high level. The
annual gross profit rate of post-processing intelligent manufacturing equipment for rubber recovered to a
26
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
better level of 40.72%; The revenue scale of intelligent logistics and warehousing system is small, and the
gross profit rate is susceptible to the profit level fluctuations of individual project.
The base period of industrial services benefited from the national policy of phased reduction of social
insurance premiums for enterprises in fighting the pandemic. In addition to this factor, the gross profit rate of
the reporting period remained stable.
In the reporting period, the change in gross profit rate of environmental protection process and equipment is
normal, the gross profit rate still maintains a high gross rate of 55.65%.
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 rate divided by region, please refer to
explanation of by industry and by product for details.
③R&D Investments
√Applicable □Not applicable
Expected impact on the future
Names of main R&D projects Project objectives
development of the Company
Complete automatic production equipment Automatic and intelligent production of New energy is a national key development industry,
for polysilicon finished products in new special-shaped block and spherical polysilicon the Company seizes the market opportunity,
energy industry products, effectively replace manual operation develops automatic and intelligent big system
and improve production efficiency and product overall solution to meet the rapid growth of the new
quality. energy industry. New expansion and new
categories, new industry and new breakthroughs
will become a new growth pole of the Company’s
business development.
Intelligent equipment system for By replacing manual labor with special robots, Expand the Company’s product system, expand
sub-merged arc furnace smelting and develop intelligent equipment system for more industry applications, and create a new profit
discharging operation sub-merged arc furnace smelting and growth point of the Company.
discharging operation, solve the problem of
safe production under high-risk and harsh
working conditions, save costs for users and
enterprises, improve production efficiency, and
promote the development of sub-merged arc
furnace smelting industry to the direction of
intelligence.
27
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Post-processing intelligent plant for finished In view of the urgent safety production demand Centering on the development vision of the
products of calcium carbide of the calcium carbide industry, develop the enterprise, we will constantly improve supply
system solution in the field of calcium carbide capability of the overall solutions of intelligent
furnace discharge, comprehensively improve factories, create new profit growth points, improve
the automatic operation level of the calcium the ability of enterprises to resist risks.
carbide discharge process, minimize the
high-risk manual operation to the extent, further
promote the technological progress of China’s
calcium carbide industry to the direction of
integrated, intelligent and green development.
Calcium carbide patrol robot In view of the urgent safety production demand Multi-category expansion of robot products has
of the calcium carbide industry, the calcium broad application fields.
carbide patrol robot is developed to further
improve the automatic operation level of the
calcium carbide production process and reduce
the manual operation in the high-risk
environment.
Model 2600 high-speed and high-accuracy Provide complete high-speed and Further enrich the Company’s product line, provide
weighing, bagging and palletizing high-accuracy weighing, bagging and preferred equipment for the newly built and
equipment palletizing equipment for plastic particle upgrading of large chemical unit, and improve the
products of 10 million tons of large chemical market competitiveness of the Company’s products.
units, maintaining the Company’s leading
position in the field of high-speed and
high-accuracy weighing, bagging and
palletizing technology.
FFS bagging and palletizing equipment for Provide efficient and environmental upgrading Further enrich the Company’s product types,
PVC powder and updating equipment for PVC powder promote the upgrading of the PVC powder
packaging industry, replace existing plastic packaging industry, the market prospect is broad,
woven bag or paper-plastic composite bag which will become a new profit growth point of the
packaging form. Company.
Anti-corrosion and dust-proof FFS bagging To provide stable, reliable, efficient and Further expand the application field of complete
and palletizing equipment environmental upgrading and updating FFS equipment, promote the upgrading and
equipment for granular and crystal chemical updating of the fertilizer packaging industry, the
fertilizer packaging industry, replace the market prospect is broad, which will become a new
existing woven bag packaging form. profit growth point of the Company.
New automatic form-fill-seal integrated Develop form-fill-seal integrated equipment by Enrich the Company’s product categories, meet the
equipment using low-cost plastic woven bag to meet the special needs of the grain processing industry, and
large needs of the grain processing industry. expand the product application field.
28
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Jumbo bag automatic bagging equipment Provide Jumbo bag automatic bagging Further enrich the Company’s product types, meet
equipment for powder and granular jumbo bag the users’ automatic and intelligent production
bagging industry, replace the existing manual demand for Jumbo bag bagging operation ,which
operation of the jumbo bag packaging mode, will become a new revenue growth point of the
improve the production efficiency and product Company.
packaging quality.
High-speed palletizing and stretch hooding Provide dust-proof, low temperature-resistant, Further expand the application industry of the
machine for powdery building materials high-speed palletizing and stretch hooding Company’s products, meet the market development
machine for powdery building materials to demand, and become a new revenue growth point of
improve production efficiency and product’s the Company.
quality.
New type stretch hooding machine Provide small footprint, intelligent and efficient Further expand the application industry of the
Stretch hooding machine for Building materials Company’s products, meet the market development
and Fine chemical industries, which enhance demand, and become a new revenue growth point of
quality of finished products and appearance the Company.
quality.
Rubber post-processing key equipment By upgrading and updating of key equipment to Further enhance the market competitiveness of the
upgrade and update make production cleaner, more accurate and Company’s products, and further consolidate the
more efficient in the user’s application site for Company’s leading position in the industry.
rubber post-processing equipment
Automatic intelligent loading and Solve the correct and reasonable matching If the project meets the expectation, it will have a
transferring system between orders and transport vehicles, and profound impact on the sales of products in various
improve the vehicle loading rate and loading industries, fill the last key link of the Company’s
efficiency. intelligent equipment suppliers, improve the
Company’s ability of bigger system solutions,
expand more business areas, and provide strong
support for the Company’s performance growth.
Complete equipment for automatic Automatic replacement of long nozzle in ladle The expansion of new product categories will
replacement of long nozzle in ladle of of continuous casting turntable in steelmaking achieve a new breakthrough in the industry
continuous casting turntable in steelmaking plant is a typical 3D (dangerous, harsh, heavy) application, and foster new profit growth points.
plant environment operation. The purpose of the
project's research and development is to replace
manual operation with automatic and intelligent
equipment, reduce cost and increase efficiency
for steel mills, and promote the development of
steel mills' production equipment to the
direction of automation and intelligence.
29
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
④Cash Flows
Unit: RMB Yuan
Item 2021 2020 Change (%)
Sub-total of cash inflows from
2,195,949,278.34 1,540,802,275.74 42.52%
operating activities
Sub-total of cash outflows from
1,796,176,147.59 1,393,795,801.09 28.87%
operating activities
Net cash flows from operating activities 399,773,130.75 147,006,474.65 171.94%
Sub-total of cash inflows from
3,272,188,250.40 2,882,083,728.35 13.54%
investing activities
Sub-total of cash outflows from
3,262,951,780.24 2,867,108,396.70 13.81%
investing activities
Net cash flows from investing activities 9,236,470.16 14,975,331.65 -38.32%
Sub-total of cash inflows from
25,430,000.00 20,000,000.00 27.15%
financing activities
Sub-total of cash outflows from
253,238,879.24 211,734,376.36 19.60%
financing activities
Net cash flows from financing activities -227,808,879.24 -191,734,376.36 -18.81%
Net increase in cash and cash
176,865,966.98 -29,769,374.94 694.10%
equivalents
Explanation of why any of the data above varies significantly:
√Applicable □Not applicable
In this reporting period, net cash flows from operating activities is 399.7731 million, increases 171.94%
compared with which of the same period of last year. The main reason is the cash flow from same period of
last year was affected by the pandemic, and that of the current period has returned to normal levels;
Net cash flows from investing activities is 9.2365 million, decreases 38.32% compared with which of the
same period of last year, mainly due to the impact of cash management activities;
Net cash flows from financing activities is -227.8089 million, decreases 18.81% compared with which of the
same period of last year. The main reason was the actual distribution of dividends during the reporting period
and the increase in the repayment of bank borrowings by subsidiaries.
Explanation of why net cash flows from operating activities vary significantly from net profit for the
reporting period:
□ Applicable √ Not applicable
30
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
2.Analysis of Assets and Liabilities
(1)Significant Changes in Asset Composition
Unit: RMB Yuan
31 December 2021 1 January 2021 Increase/
Proportion of Proportion of Decrease in Major changes
Amount Amount
total asset total asset proportion
Cash at bank and on
293,516,532.24 5.99% 114,882,208.58 2.51% 3.48%
hand
Accounts receivable 686,517,240.24 14.00% 697,718,969.34 15.24% -1.24%
Contract assets 65,959,231.77 1.35% 0.00% 1.35% Product quality margin.
Inventories 1,634,635,126.78 33.35% 1,510,919,027.41 33.01% 0.34% The growth of product order.
Investment properties 6,765,974.62 0.14% 7,159,198.06 0.16% -0.02%
Long-term equity
368,931,927.57 7.53% 344,094,650.83 7.52% 0.01%
investments
Fixed assets 227,527,890.89 4.64% 234,309,738.79 5.12% -0.48%
Construction in progress
Construction in
4,099,390.68 0.09% -0.09% transferred to fixed assets
progress
during the reporting period
Recognized right-of-use asset
Right-of-use assets 1,536,107.89 0.03% 1,263,032.76 0.03% 0.00% based on The New Lease
Accounting Standard.
Short-term
25,130,000.00 0.51% 20,000,000.00 0.44% 0.07%
borrowings
There is little change after
combined with the “contract
Contract liabilities 1,183,763,174.21 24.15% 1,414,586,745.15 30.91% -6.76% liabilities” classified under the
item “other non-current
liabilities”.
Due to the transfer from long
Long-term
15,000,000.00 0.33% -0.33% term bank loan due within one
borrowings
year to current liabilities.
Recognized lease liabilities
Lease liabilities 364,078.19 0.01% 168,966.21 0.00% 0.01% based on The New Lease
Accounting Standard.
31
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
(2) Assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: RMB Yuan
Profit or loss Cumulative fair Amount
from change in value change provided for Purchased in the Other
Item Opening balance Sold in the period Closing balance
fair value during charged to impairment period changes
the period equity in the period
Financial
assets
Financial asset
held for
trading
925,736,671.99 -1,589,248.11 3,005,470.49 0.00 3,048,840,000.00 3,127,391,953.39 845,595,470.49
(excluding
derivative
financial )）
Investments in
other equity 35,000,000.00 19,843,027.56 27,316,711.56 54,843,027.56
instruments
Sub-total of
financial 960,736,671.99 18,253,779.45 30,322,182.05 0.00 3,048,840,000.00 3,127,391,953.39 0.00 900,438,498.05
assets
Sub-total of
960,736,671.99 18,253,779.45 30,322,182.05 0.00 3,048,840,000.00 3,127,391,953.39 0.00 900,438,498.05
the above
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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
32
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
IV. The Company’s Outlook for Future Development
1. Intelligent Manufacturing Is the Industrial Direction of China’s Manufacturing Industry
“Manufacturing is the main body of the national economy, the foundation of building the country, the
instrument of rejuvenating the country and the foundation of strengthening the country.”“The 14th
Five-Year Plan” Intelligent Manufacturing Development Plan and the“14th Five-Year Plan ”Robot
Industry Development Plan have set China’s industrial planning goals by 2025 and 2035. Manufacturing
enterprises have broad space for digital, networked and intelligent production, and the robot industry is also
facing unprecedented development opportunities.
Since the foundation of the Company in 1997, the Company has been committed to the revitalization and
development of the national equipment industry for a long period. The Company successfully developed the
handling robot in the early stage of its establishment, and realized the industrial application as early as
2005.The Company has applied industrial robot technology to the field of industrial automation. The
Company has independent intellectual property rights of the complete intelligent equipment products to
make positive contributions for the large-scale industrial production of customers and the localization of
major equipment in the main application fields. The Company’s products successfully replacing imported
products have realized the independent, controllable, efficient, safe and reliable operation of China’s major
equipment industry. Over the years, the Company’s products are widely used, has become the first choice of
backbone enterprises in the industry.
In the 21st century, especially in recent years, a new round of scientific and technological revolution and
industrial transformation has come rapidly. 5G communication network, industrial internet information
technology, new materials, big data, cloud computing, deep learning, artificial intelligence and other
technologies have advanced by leaps and bounds, which provide reliable technical support and realizable
possibility for the Company to accelerate the transformation of products from “automation” to
“intelligent”. seize the opportunity of the times, integrate the development of advanced manufacturing and
information technology, energize for the high-end, intelligent and green development of manufacturing
industry, the Company’s intelligent manufacturing equipment business has great potential.
Looking forward to the future, the Company will adhere to the market demand oriented, drive technology
leading by innovation, ensure the core security with independent and controllable means, integrate with
social resources, accelerate the Company’s intelligent manufacturing equipment, industrial service business,
and promote China’s equipment industry development; replace manual operation under high-risk and heavy
environment, ensure production safety, drive labor production civilization progress; contribute to society,
return for shareholders, bring well-being for employees, and strive to achieve good and rapid development of
the Company.
2. The Company Focuses on Business Direction of Its Development
The Company actively carries out the research and development, application and promotion of new
technologies and new products, improves the intelligent manufacturing level of related industries in the
following fields, and leads the coordinated development of the Company’s various businesses.
33
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
(1) Digital intelligent manufacturing equipment based on 5G and industrial Internet technology
China is a major manufacturing country, and the COVID-19 pandemic highlights China’s important position
in the international industrial chain. At present, China has turned to a stage of high-quality development, and
is in a critical period of transforming the development model, optimizing the economic structure and
transformation of growth momentum. The rise of Chinese manufacturing brands and the huge potential for
domestic demand make us confident about the prospects of China’s manufacturing industry.
With the integration and development of industrial Internet technology and machine intelligence technology
based on 5G, China’s new industrialization process is accelerating reform. With many years of technical
accumulation and industrial practical experience in the field of large-scale intelligent manufacturing
equipment, the Company actively expands the application scenarios in the field of intelligent manufacturing.
① Overall solution of post-processing intelligent manufacturing equipment for solid material.
Legend: Schematic diagram for overall solution of post-processing intelligent manufacturing equipment for solid material
Note: this diagram only shows the part of photos and blurred images in this section. Under the premise of
technical confidentiality, this diagram helps the investors to understand the relevant content more easily.
The overall solution of post-processing intelligent manufacturing for solid material includes weighing,
measuring, packaging, palletizing, film hooding, digital outbound & inbound, intelligent loading, and control
system and other modules for general and sub-unit operation management, can be widely used in the
post-processing application scenarios of powdery materials, granular materials and irregular materials (such
as polycrystalline silicon raw materials in the new energy industry), and help the intelligent and efficient
production and digital upgrading of relevant industries.
34
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
②Overall solution of intelligent factories.
Legend: Schematic diagram for overall solution of intelligent factories
The overall solution of intelligent factory, using multi-disciplinary technology, with intelligent production
management decision-making system as the core control unit, helps customers’ digital transformation,
realizes less and unmanned factories, improves the level and efficiency of intelligent manufacturing, and
realizes scientific, independent, economic, safe and efficient production.
③Intelligent manufacturing equipment and intelligent plant solutions covering all categories of polysilicon.
Driven by the Dual-carbon strategy of National “Carbon Peak, Carbon Neutral”, China’s photovoltaic
industry has ushered in a new round of large-scale production capacity release in recent years, and the
process of replacing traditional manual operations with intelligent equipment in the industry is in full swing.
Since 2019, the Company pioneered packaging equipment for block polysilicon products which is
synchronous to apply it in the companies of DAQO Energy Co., Ltd and Xinte Energy Co., Ltd in
polysilicon raw material production field, the Company increased investment in R&D, which has formed a
series products of gross weight type, net weight type, pre-made bag, FFS in two sectors of block polysilicon
and granular polysilicon. The Company will combine the unit system equipment with reducing silicon rod
crushing, screening magnetic selection, AGV directional transportation, metering and molding packaging,
factory logistics and other processes to initially form an intelligent plant solution. In the field of new energy
industry, the Company has cooperated widely with the new energy enterprises such as Xiexin Group,
Tongwei Group, Daqo New Energy, Xinte Energy, Asia Silicon, Shanxi Non-ferrous Metals Holding Group,
REC Silicon INC, Qinghai Lihao, Ningxia Runergy, etc. In this field, the Company is highly competitive.
35
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Legend: Schematic diagram for intelligent manufacturing equipment and intelligent plant solutions covering
all categories of polysilicon.
(2) Manual substitution under high-risk, heavy and harsh working environment.
Under the environment of high risk, heavy and harsh working conditions, the hidden trouble of safety
production is large. Under the influence of digital economy in the service industry, there is a structural
supply and demand dislocation in human resources, and manufacturing enterprises generally have to face
employment problems. These enterprises are limited by manual production, and they are generally faced with
difficult problems such as high safety production cost, low degree of operation standardization, unstable
product quality, high operation risk and insufficient capacity utilization rate.
① Overall solution of intelligent manufacturing for arc furnace smelting.
Legend: Schematic diagram for overall solution of intelligent manufacturing for calcium carbide furnace field
36
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
The effect of promotion and application of the Company’s self-innovated and developed (high temperature)
operation robot and its peripheral system in the field of sub-merged arc furnace of calcium carbide is
remarkable. It can completely solve many pain points that cannot be solved by manual operation, promote
safe production, improve production capacity, truly realize the transformation of traditional industries with
high and new technology, and promote the industrial upgrading of intelligent manufacturing. On this basis,
the Company has continued to develop the application of high-temperature special robots in the high
temperature furnace operation environment of silicon iron, silicon manganese, industrial silicon furnace and
other high-temperature furnace, has made achievements in succession.
② Overall solution of plant intelligent logistics
Legend: Partial photos for automatic vehicle loading system
The Company’s intelligent logistics system takes the automatic loading system as the core unit, with the
visual identification system, data Information interface system, logistics dispatching system, transfer system
and the like as the auxiliary, carries on the logistic operation of batch transportation, the stacking, the split,
the combination, the loading and the like to many kinds of bags, boxes, bulk materials and so on. Overall
solution of intelligent logistics can be widely used in many fields of national economy, which is helpful for
users to concentrate resources, improve their logistics automation ability, improve production efficiency and
release production potential. User’s feedback and market expansion continue to improve. Intelligent logistics
solutions, can realize the seamless connection between production line or warehouse and transport vehicles,
can be widely used in many areas of the national economy, is conducive to user concentrated resources,
improve production efficiency, release production potential. The advantage is obviously remarkable under
the conditions of labor shortage, limited personnel, harsh loading environment, and user’s feedback and
market development continue to improve.
③ Overall solution of steel intelligent manufacturing.
During the reporting period, the Company increased capital to hold Hunan Boshi Automation Equipment Co.,
Ltd., which focuses on intelligent manufacturing equipment technology and product application in the field
37
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
of steel production, and has made positive progress in iron-making, steel-making, iron water transfer, billet
continuous casting and other process links. The Company will actively promote research and development,
accelerate product application, accumulate project experience, improve and promote the implementation of
each sub-system of intelligent manufacturing solutions in the steel industry, and actively promote
industrialization.
Legend: Partial schematic diagram of overall solution of iron & steel intelligent manufacturing
(3)Industrial service of intelligent equipment
In March 2021, the National Development and Reform Commission, Ministry of Science and Technology,
Ministry of Industry and Information Technology,etc. totaling thirteen departments jointly issued Opinions
on Accelerating the High-quality Development of the Manufacturing and Service Industry. From the strategic
planning level, the State put forward that by 2025, the manufacturing service industry will play a
significantly enhanced role in improving the quality, benefit, innovation ability and resource allocation
efficiency of the manufacturing industry, play a more prominent supporting and leading role in the
high-quality development of the manufacturing industry, and realize the coupling symbiosis and integration
and development of the manufacturing industry and the manufacturing service industry.
The Company has formulated and implemented the integrated business strategy of products and services,
which has achieved remarkable results. The Company’s intelligent manufacturing equipment and industrial
services have developed into an important source of revenue and profit for the Company. On the one hand,
industrial service revenue will increase with the growth of Sales and production operation base of intelligent
manufacturing equipment; on the other hand, the Company will rapidly increase service revenue after
undertaking new large-scale production and operation service projects. The Company’s industrial service
business responds positively to customers’ deep-level service needs, which will bring continuous, long-term
and steady growth of the overall industrial service revenue scale. During the reporting period, the Company’s
operation and after-sales industrial service revenue exceeded RMB 500 million Yuan for the first time,
reaching RMB 511 million Yuan, achieving 23.06% growth year-on-year. The Company’s integrated
industrial services and intelligent manufacturing equipment sales form a benign interaction, promote each
other, enhance customer stickiness, and effectively extend the industrial chain.
The Company actively strives to complete the national task of “Pilot unit for integrated development of
advanced manufacturing and modern service industry”, explores new models and new paths, accumulates
experience, and promotes the rapid development of “integration of two industries” in China with
performance.
38
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
(4) Continue to promote the development of energy conservation, emission reduction and
environmental protection industry, and constitute a beneficial supplement to the Company’s
intelligent manufacturing equipment and industrial service.
The 14th Five-Year Plan takes “achieving new progress in ecological civilization construction” as one of the
main goals. China has announced that it will strive to achieve “Carbon Peak” by 2030, and strive to achieve
“Carbon Neutral” by 2060, bringing big opportunities to the energy conservation, emission reduction and
environmental protection industry. The Company will promote the R&D and application of Boao
Environmental Technology Co., Ltd in the direction of industrial waste sulfuric acid and sulfur-containing
acid gas treatment and recycling, and form a beneficial supplement to the Company’s intelligent
manufacturing equipment and industrial service business.
3. Business Outlook in 2022
Since 2017, the Company’s performance has continued to grow rapidly. In 2021, the Company’s operating
revenue entered RMB 2 billion Yuan for the first time, reaching RMB 2.113 billion Yuan, 3.37 times of the
revenue in 2016, the net profit attributable to parent company’s shareholders was RMB 490 million Yuan,
4.46 times which in 2016, the weighted average return on equity reached 18.02%, reached the best level of
recent ten years. In 2022, the Company will strive to improve its competitive advantage, actively overcome
the adverse effects of the control measures for the accelerated transmission of COVID-19 strain variation in
the face of many market demand opportunities, optimize resource allocation, and be confident to continue to
maintain sustained and healthy growth of performance in 2022.
4. Risks Facing by the Company
(1) The risk that the R&D of intelligent manufacturing equipment and industrialization process are less than
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. “ Intelligent Manufacturing Development Plan of the 14th Five-year Plan” clearly
expresses:“In the 14th Five-year Plan and for a long period in the future, the promotion of intelligent
manufacturing should be based on the essence of manufacturing, closely follow the characteristics of
intelligence, take process equipment as the core, take data as the basis, rely on manufacturing units,
workshops, factories and supply chains and other carriers to promote the digital transformation of
manufacturing industry, network coordination and intelligent transformation. By 2025, most manufacturing
enterprises above designated size will realize digital networking, and backbone enterprises in key industries
will initially apply intelligence; By 2035, manufacturing enterprises above designated size will fully
popularize digital networking, and backbone enterprises in key industries will basically realize intelligence.”
In the face of huge demand prospect, 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
39
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Company 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 deeply applied
in the Company’s overall solution of intelligent manufacturing.
After years of technical accumulation, as well as the rich multi-category product lines, the Company can
provide customers with the intelligent manufacturing overall solutions in the main product application fields.
Intelligent manufacturing technology is inseparable from industrial Internet technology. The application of
5G in the industrial field provides technological convenience for human-machine collaboration and
intelligent manufacturing. Although the Company has a prominent competitive advantage in the field of
Product 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.
(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 replaces the imported equipment or makes the first set of
innovative applications with the continuous technology lead in the field where Boshi is engaged in to
maintain the dominant competitive position for a long time. However, in the face of the rapid development of
industrial Internet, artificial intelligence technology, as well as the fierce resource competition among
enterprises, the development of enterprises should not stay on the use of internal resources. For example, in
the field of intelligent manufacturing overall solutions, non-core and sufficient market competition units can
directly connect with social resources, select the best, and integrate with the Company’s core technologies,
helping to accelerate the research and development process of products and technologies, and strive for
market opportunities. If the Company fails to effectively give full play to its own advantages, integrate social
resources, and accelerate the innovative application of product technology, it will constitute one of the risk
factors restricting the medium-term and long-term development of the Company.
(4) The risk of unexpected demand for intelligent equipment due to complicated international environment in
the post-pandemic era.
As we all know, the human fight against COVID-19 has entered a lasting tug of war, the virus has repeatedly
expanded its infectivity, making countries around the world unexpected. Since 2022, while the world has
fought against this common disaster of mankind, the sudden emergence of international geopolitical and
military conflicts may have had a far-reaching impact on the political and economic pattern of the world for
several years. As a manufacturing power in the world, if China is affected by the world’s insufficient global
demand or adverse economic and trade policies, the world’s demand for Chinese manufacturing may be
lower than expected. In the field of product and technology application, as a domestic intelligent equipment
supplier and intelligent manufacturing overall solution provider, the Company will inevitably be restricted by
this. Therefore, if the demand for intelligent equipment in the post-epidemic era is not as expected, it will
constitute one of the short-and medium-term risk factors restricting the Company’s future performance.
(5) The risk of technology confidentiality and unfair competition.
Technology leading is one of the important competitive strategies and competitive advantages of the
40
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Company. The technology leading advantage of the products directly affects whether the Company’s
products can maintain a high level of sustainable profitability and the effective implementation of the
Company’s differentiated competitive strategy. The Company attaches great importance to the job of
technology confidentiality by applying for intellectual property protection, strengthening legal rights
protection, and protecting the Technology security of enterprises and preventing related risks through
technical means. Nevertheless, there are still intellectual property rights owned by the Company illegally
stolen, and other risks of unfair competition, which may cause potential economic losses to the Company.
41
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
V. Financial statements
(1)Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB Yuan
Item Dec 31, 2021 Dec 31, 2020
Current assets:
Cash at bank and on hand 293,516,532.24 114,882,208.58
Financial assets held for trading 845,595,470.49 925,736,671.99
Derivative financial assets
Bills receivable 229,646,179.07 451,042,158.41
Accounts receivable 686,517,240.24 697,718,969.34
Financing receivables 79,149,044.16
Prepayments 122,894,199.23 49,361,424.98
Other receivables 15,263,337.81 12,814,291.13
Thereof: Interest receivable
Dividend receivable
Inventories 1,634,635,126.78 1,510,919,027.41
Contract assets 65,959,231.77
Assets held for sale
Non-current assets due within one year
Other current assets 102,006,478.67 32,990,507.69
Total current assets 4,075,182,840.46 3,795,465,259.53
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 368,931,927.57 344,094,650.83
Other equity instruments investments 54,843,027.56 35,000,000.00
Other non-current financial assets
Investment properties 6,765,974.62 7,159,198.06
Fixed assets 227,527,890.89 235,572,771.55
Construction in progress 4,099,390.68
Productive biological assets
Oil and gas assets
Right-of-use assets 1,536,107.89
42
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Intangible assets 59,203,985.82 62,601,735.18
Development costs
Goodwill 57,640,668.16 63,225,965.69
Long-term deferred expenses 6,416.02
Deferred tax assets 33,545,799.43 29,584,781.07
Other non-current assets 16,767,197.42
Total non-current assets 826,762,579.36 781,344,909.08
Total assets 4,901,945,419.82 4,576,810,168.61
Current liabilities:
Short-term loans 25,130,000.00 20,000,000.00
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 169,654,369.55 176,663,766.15
Advances from customers 93,199.97 64,999.97
Contract liabilities 1,183,763,174.21 1,414,586,745.15
Employee benefits payable 55,640,882.93 52,359,540.74
Taxes payable 50,017,507.87 31,686,005.73
Other payables 1,310,296.34 1,618,618.55
Thereof: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 15,584,251.66 14,364,107.49
Other current liabilities 87,335,615.64 108,007,436.68
Total current liabilities 1,588,529,298.17 1,819,351,220.46
Non-current liabilities:
Long-term loans 15,000,000.00
Bonds payable
Thereof: Preference shares
Perpetual debts
Lease liabilities 364,078.19
Long-term payable 6,000,000.00 6,168,966.21
Long-term employee benefits payable
Provisions 4,202,180.70
43
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Deferred income 8,369,857.05 12,464,554.00
Deferred tax liabilities 13,350,055.20 8,298,154.76
Other non-current liabilities 233,253,274.34
Total non-current liabilities 265,539,445.48 41,931,674.97
Total liabilities 1,854,068,743.65 1,861,282,895.43
Shareholders' equity：
Share capital 1,022,550,000.00 1,022,550,000.00
Other equity instruments
Thereof: Preference shares
Perpetual debts
Capital reserve 168,298,491.29 154,755,282.47
Less: treasury shares
Other comprehensive income 15,452,263.61 7,113,828.84
Specific reserve 26,141,271.69 22,797,522.14
Surplus reserve 255,493,157.09 209,534,453.40
General risk reserve
Retained earnings 1,391,857,922.71 1,151,999,326.68
Total equity attributable to shareholders of the Company 2,879,793,106.39 2,568,750,413.53
Non-controlling interests 168,083,569.78 146,776,859.65
Total shareholders' equity 3,047,876,676.17 2,715,527,273.18
Total liabilities and shareholders' equity 4,901,945,419.82 4,576,810,168.61
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2) Balance Sheet of Parent Company
Unit: RMB Yuan
Item Dec 31, 2021 Dec 31, 2020
Current assets:
Cash at bank and on hand 231,349,019.86 20,668,974.65
Financial assets held for trading 781,841,534.53 864,752,467.80
Derivative financial assets
Bills receivable 213,879,097.43 400,328,817.95
Accounts receivable 623,091,820.39 618,994,281.14
Financing receivables 62,227,683.22
Prepayments 103,997,118.75 36,079,366.62
44
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Other receivables 12,089,893.45 8,618,285.70
Thereof: Interest receivable
Dividend receivable
Inventories 1,365,863,929.52 1,259,018,020.07
Contract assets 61,464,107.44
Assets held for sale
Non-current assets due within one year
Other current assets 84,086,902.47 3,871,403.23
Total current assets 3,539,891,107.06 3,212,331,617.16
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 510,619,193.87 457,974,650.83
Other equity instruments investments 24,483,027.56 17,000,000.00
Other non-current financial assets
Investment properties
Fixed assets 167,587,260.49 168,164,460.66
Construction in progress 4,099,390.68
Productive biological assets
Oil and gas assets
Right-of-use assets 653,082.18
Intangible assets 36,724,254.11 36,808,912.03
Development costs
Goodwill
Long-term deferred expenses 6,416.02
Deferred tax assets 25,151,630.69 24,074,930.72
Other non-current assets 15,847,197.42
Total non-current assets 781,065,646.32 708,128,760.94
Total assets 4,320,956,753.38 3,920,460,378.10
Current liabilities:
Short-term loans
Financial liabilities held for trading
Derivative financial liabilities
45
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Bills payable
Accounts payable 163,506,047.84 173,103,981.93
Advances from customers
Contract liabilities 1,076,132,534.39 1,063,847,810.82
Employee benefits payable 45,727,674.42 41,357,068.35
Taxes payable 45,300,625.00 24,889,780.41
Other payables 5,531,624.08 3,381,907.20
Thereof: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 201,250.11
Other current liabilities 82,008,840.39 96,654,652.84
Total current liabilities 1,418,408,596.23 1,403,235,201.55
Non-current liabilities:
Long-term loans
Bonds payable
Thereof: Preference shares
Perpetual debts
Lease liabilities 209,114.67
Long-term payable 6,000,000.00 6,000,000.00
Long-term employee benefits payable
Provisions 3,996,091.20
Deferred income 8,369,857.05 12,464,554.00
Deferred tax liabilities 7,297,242.43 5,387,156.24
Other non-current liabilities 107,151,867.52
Total non-current liabilities 133,024,172.87 23,851,710.24
Total liabilities 1,551,432,769.10 1,427,086,911.79
Shareholders' equity：
Share capital 1,022,550,000.00 1,022,550,000.00
Other equity instruments
Thereof: Preference shares
Perpetual debts
Capital reserve 168,288,785.47 154,745,576.65
Less: treasury shares
46
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Other comprehensive income 5,369,127.17
Specific reserve 22,035,866.22 19,874,721.13
Surplus reserve 255,493,157.09 209,534,453.40
Retained earnings 1,295,787,048.33 1,086,668,715.13
Total shareholders' equity 2,769,523,984.28 2,493,373,466.31
Total liabilities and shareholders' equity 4,320,956,753.38 3,920,460,378.10
(3) Consolidated Income Statement
Unit: RMB Yuan
Item 2021 2020
1. Total revenue 2,112,954,813.09 1,827,912,892.55
Thereof : Operating revenue 2,112,954,813.09 1,827,912,892.55
2. Total cost 1,606,585,515.83 1,332,614,575.21
Thereof : cost of sales 1,303,411,602.34 1,060,505,373.44
Taxes and surcharges 18,517,384.66 15,962,674.21
Selling and distribution expenses 85,543,508.38 79,960,345.06
General and administrative expenses 111,279,233.98 100,441,574.31
Research and development expenses 88,753,584.15 71,605,651.09
Financial expenses -919,797.68 4,138,957.10
Thereof : Interest expenses 1,497,144.62 1,727,904.63
Interest income 5,851,744.39 452,969.07
Add: Other income 71,574,326.06 38,416,134.81
Investment income ("-" for losses) 53,508,336.66 44,486,030.74
Thereof: Income from investment in associates and joint
28,651,229.34 20,553,866.33
ventures
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) -1,589,248.11 -81,706.65
Credit impairment losses ("-" for losses) -5,811,944.82 -17,888,135.20
Impairment losses ("-" for losses) -16,815,163.35 -3,258,059.67
Gains from assets disposal ("-" for losses) -868,454.28 -287,686.50
47
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
3. Operating profit ("-" for losses) 606,367,149.42 556,684,894.87
Add: Non-operating income 81,855.21 354,357.66
Less: Non-operating expenses 3,781,822.74 2,598,970.38
4. Profit before income tax ("-" for losses) 602,667,181.89 554,440,282.15
Less: Income tax expenses 82,775,578.07 84,599,329.18
5. Net profit for the year ("-" for net losses) 519,891,603.82 469,840,952.97
(1) Classification according to operation continuity
Net profit from continuing operations(loss is stated with “-”) 519,891,603.82 469,840,952.97
Net profit from discontinued operations(loss is stated with “-”)
(2) Classified by ownership of the equity
Attributable to shareholders of the Parent Company 490,327,299.72 405,370,652.33
Minority interests 29,564,304.10 64,470,300.64
6. Other comprehensive income, net of tax 2,284,828.34 2,293,086.16
Other comprehensive income attributable to shareholders of the
8,338,434.77 1,169,473.95
Parent Company, net of tax
(1) Other comprehensive income items which will not be
15,630,573.43
reclassified subsequently to profit or loss
1) Changes arising from re-measurement of defined
benefit plan
2) Other comprehensive income that will not be
transferred subsequently to profit or loss under the equity method
3) Changes in the fair value of the investment in other
15,630,573.43
equity instruments
4)Changes in the fair value of the Company’s own credit
risk
5)Others
(2) Other comprehensive income items which will be
-7,292,138.66 1,169,473.95
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
subsequently to profit or loss under the equity method
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
-7,292,138.66 1,169,473.95
foreign currency financial statements
48
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
7)Others
Other comprehensive income attributable to minority shareholders,
-6,053,606.43 1,123,612.21
net of tax
7. Total comprehensive income 522,176,432.16 472,134,039.13
Attributable to shareholders of the Parent Company 498,665,734.49 406,540,126.28
Minority interests 23,510,697.67 65,593,912.85
8. Earnings per share
(1) Basic earnings per share 0.4795 0.3964
(2) Diluted earnings per share
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(4)Income Statement of Parent Company
Unit: RMB Yuan
Item 2021 2020
1. Total revenue 1,776,631,649.81 1,400,406,025.20
Less: cost of sales 1,137,531,815.19 859,441,972.47
Taxes and surcharges 16,606,349.16 14,430,210.33
Selling and distribution expenses 70,315,541.65 66,350,618.91
General and administrative expenses 63,840,051.35 60,715,103.83
Research and development expenses 70,022,646.60 60,435,292.61
Financial expenses -7,790,596.13 1,212,527.39
Thereof : Interest expenses 1,617.96 2,828.70
Interest income 5,812,277.72 280,069.10
Add: Other income 67,049,026.22 36,671,069.73
Investment income ("-" for losses) 60,220,154.32 44,785,874.80
Thereof: Income from investment in associates and joint
28,651,229.34 20,553,866.33
ventures
Gain from derecognition of financial assets measured at
amortized cost
Net exposure hedging gains ("-" for losses)
Gains from changes in fair value ("-" for losses) -1,988,979.88 621,044.46
Credit impairment losses ("-" for losses) -7,154,301.92 -16,795,911.54
Impairment losses ("-" for losses) -13,840,196.01 -3,121,533.18
Gains from assets disposal ("-" for losses) -868,454.28 -266,512.84
49
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
2. Operating profit ("-" for losses) 529,523,090.44 399,714,331.09
Add: Non-operating income 77,029.66 296,987.60
Less: Non-operating expenses 2,372,582.71 2,453,705.76
3. Profit before income tax ("-" for losses) 527,227,537.39 397,557,612.93
Less: Income tax expenses 67,640,500.50 50,515,840.46
4. Net profit for the year ("-" for net losses) 459,587,036.89 347,041,772.47
Net profit from continuing operations (loss is stated with “-”) 459,587,036.89 347,041,772.47
Net profit from discontinued operations (loss is stated with “-”)
5. Other comprehensive income, net of tax 5,369,127.17
(1) Other comprehensive income items which will not be
6,360,573.43
reclassified subsequently to profit or loss
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
6,360,573.43
equity instruments
4)Changes in the fair value of the Company’s own credit
risk
5)Others
(2) Other comprehensive income items which will be
-991,446.26
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
subsequently to profit or loss under the equity method
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
-991,446.26
foreign currency financial statements
7)Others
6. Total comprehensive income 464,956,164.06 347,041,772.47
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
50
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
(5) Consolidated Cash Flow Statement
Unit: RMB Yuan
Item 2021 2020
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2,109,481,032.52 1,486,580,301.71
Refund of taxes and surcharges 63,915,107.96 37,749,181.98
Other cash receipts relating to operating activities 22,553,137.86 16,472,792.05
Sub-total of cash inflows from operating activities 2,195,949,278.34 1,540,802,275.74
Cash paid for goods and services 1,091,852,260.00 780,421,814.44
Cash paid to employees and paid on behalf of employees 375,628,793.53 286,062,355.57
Payments of taxes and surcharges 207,710,364.96 200,709,231.04
Other cash payments relating to operating activities 120,984,729.10 126,602,400.04
Sub-total of cash outflows from operating activities 1,796,176,147.59 1,393,795,801.09
Net cash flows from operating activities 399,773,130.75 147,006,474.65
2. Cash flows from investing activities
Cash received from withdrawing investments 3,243,591,953.39 2,854,525,204.43
Cash received from investment income 27,384,251.30 24,494,437.44
Net cash received from disposal of fixed assets, intangible
1,212,045.71 348,459.48
assets and other long term assets
Net cash received from disposal of subsidiaries and other
2,715,627.00
operating units
Other cash receipts relating to investing activities
Sub-total of cash inflows from investing activities 3,272,188,250.40 2,882,083,728.35
Cash paid to acquire fixed assets, intangible assets and other
25,044,760.67 26,558,663.53
long-term assets
Cash paid to acquire investments 3,235,040,000.00 2,840,040,000.00
Net increase of mortgaged loans
Net cash paid to acquire subsidiaries and other operating units 1,027,019.57
Other cash payments relating to investing activities 1,840,000.00 509,733.17
Sub-total of cash outflows from investing activities 3,262,951,780.24 2,867,108,396.70
Net cash flows from investing activities 9,236,470.16 14,975,331.65
3. Cash flows from financing activities
Cash received from capital contributions 300,000.00
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Thereof: Cash received by subsidiaries from minority
300,000.00
shareholders’ capital contributions
Cash received from borrowings 25,130,000.00 20,000,000.00
Other cash receipts from financing activities
Sub-total of cash inflows from financing activities 25,430,000.00 20,000,000.00
Cash repayments of borrowings 39,209,395.45 23,567,227.67
Distribution of dividends or profits and payments for interest
213,388,945.70 188,150,551.21
expenses
Thereof: Cash payments for dividends or profit to minority
7,350,000.00 2,450,000.00
shareholders by subsidiaries
Other cash payments relating to financing activities 640,538.09 16,597.48
Sub-total of cash outflows from financing activities 253,238,879.24 211,734,376.36
Net cash flows from financing activities -227,808,879.24 -191,734,376.36
4. Effect of foreign exchange rate changes on cash and cash
-4,334,754.69 -16,804.88
equivalents
5. Net increase in cash and cash equivalents 176,865,966.98 -29,769,374.94
Add: Cash and cash equivalents at the beginning of period 113,464,591.58 143,233,966.52
6. Cash and cash equivalents at the end of period 290,330,558.56 113,464,591.58
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(6)Cash Flow Statement of Parent Company
Unit: RMB Yuan
Item 2021 2020
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 1,843,592,265.40 1,238,683,497.08
Refund of taxes and surcharges 60,099,520.80 32,679,268.89
Other cash receipts relating to operating activities 20,301,421.67 14,340,434.32
Sub-total of cash inflows from operating activities 1,923,993,207.87 1,285,703,200.29
Cash paid for goods and services 912,443,357.66 623,759,202.23
Cash paid to employees and paid on behalf of employees 316,455,375.21 235,902,653.78
Payments of taxes and surcharges 180,804,746.80 169,280,089.50
Other cash payments relating to operating activities 92,774,844.35 97,029,218.34
Sub-total of cash outflows from operating activities 1,502,478,324.02 1,125,971,163.85
Net cash flows from operating activities 421,514,883.85 159,732,036.44
2. Cash flows from investing activities
Cash received from withdrawing investments 3,013,721,953.39 2,583,065,204.43
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2021(Abstract）
Cash received from investment income 34,306,890.88 25,409,897.95
Net cash received from disposal of fixed assets, intangible
1,212,045.71 384,795.15
assets and other long term assets
Net cash received from disposal of subsidiaries and other
operating units
Other cash receipts relating to investing activities 8,000,000.00 22,000,000.00
Sub-total of cash inflows from investing activities 3,057,240,889.98 2,630,859,897.53
Cash paid to acquire fixed assets, intangible assets and other
21,349,226.34 19,967,175.66
long-term assets
Cash paid to acquire investments 3,025,800,000.00 2,574,900,000.00
Net cash paid to acquire subsidiaries and other operating units 1,200,000.00
Other cash payments relating to investing activities 15,000,000.00 509,733.17
Sub-total of cash outflows from investing activities 3,063,349,226.34 2,595,376,908.83
Net cash flows from investing activities -6,108,336.36 35,482,988.70
3. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings
Other cash receipts from financing activities
Sub-total of cash inflows from financing activities
Cash repayments of borrowings 157,000.00
Distribution of dividends or profits and payments for interest
204,510,000.00 184,061,828.70
expenses
Other cash payments relating to financing activities 219,047.62
Sub-total of cash outflows from financing activities 204,729,047.62 184,218,828.70
Net cash flows from financing activities -204,729,047.62 -184,218,828.70
4. Effect of foreign exchange rate changes on cash and cash
-4,254.66 -36,061.01
equivalents
5. Net increase in cash and cash equivalents 210,673,245.21 10,960,135.43
Add: Cash and cash equivalents at the beginning of period 20,668,974.65 9,708,839.22
6. Cash and cash equivalents at the end of period 231,342,219.86 20,668,974.65
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
April 15th, 2022
53
