HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022
（Abstract）
Ⅰ. Important Notes
This Abstract is extracted from Annual Report 2022. 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 2022 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 pre-arranged profit distribution plan approved by the Board of Directors is as
follows: based on 1,022,550,000 shares, which was the total share capital of the Shenzhen Stock Exchange
closed on December 31st, 2022, the Company will pay a cash dividend of RMB 2.50 (tax included) for every
10 shares to all shareholders, and 0 bonus shares, and no increase of common stock through capital reserve.
If the total share capital of the Company changes before the stock registration date, the Company will adjust
the total dividends according to the principle that the proportion of each share is unchanged.
According to the Proposal on the Company’s Public Offering of Convertible Corporate Bonds, all
shareholders (including those formed by the convertible bonds) registered on the date of registration of the
dividend are equally entitled to participate in the current distribution of profits.
Indicate by check mark if preplan for preferred stocks profit distribution to shareholders for the report 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 2022(Abstract）
II. Basic Situation of the Company
1. Company Profile
Stock Abbreviation Boshi Stock Code 002698
Stock Exchange for Stock
Shenzhen Stock Exchange
Listing
Stock abbreviations before the
None
change (if any)
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
Fax +86-451-84367022 +86-451-84367022
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. Key Financial Information
(1) Key accounting data and financial indicators in the past three years
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous
year.
□Yes √No
Unit: RMB
Increase/decrease of
As of Dec.31, 2022 As of Dec.31, 2021 As of Dec.31, 2020
2022 over 2021
Total assets 6,220,273,855.91 4,901,945,419.82 26.89% 4,576,810,168.61
Total equity attributable to
3,169,585,012.94 2,879,793,106.39 10.06% 2,568,750,413.53
shareholders of the parent company
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Increase/decrease of
2022 2021 2020
2022 over 2021
Operating Revenue 2,153,746,152.69 2,112,954,813.09 1.93% 1,827,912,892.55
Net profit attributable to parent
445,038,600.37 490,327,299.72 -9.24% 405,370,652.33
company’s shareholders
Net profit after deducting
non-recurring profit or loss attributable 414,143,401.62 459,328,151.59 -9.84% 375,832,168.49
to shareholders of the parent company
Net cash flow from operating activities 451,531,966.20 399,773,130.75 12.95% 147,006,474.65
Basic earnings per share (RMB/share) 0.4352 0.4795 -9.24% 0.3964
Diluted earnings per share(RMB/share) 0.4352 0.4795 -9.24% 0.3964
Weighted average return on equity 14.70% 18.02% -3.32% 16.83%
(2) Key accounting data by quarter
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 504,286,748.22 523,820,429.71 698,826,750.82 426,812,223.94
Net profit attributable to parent
153,163,366.86 111,217,419.14 163,254,718.26 17,403,096.11
company’s shareholders
Net profit after deducting
non-recurring profit or loss
146,195,048.97 101,009,968.07 157,612,508.17 9,325,876.41
attributable to shareholders of the
parent company
Net cash flows from operating
55,942,302.81 116,231,706.19 65,178,409.49 214,179,547.71
activities
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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
3. 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
Total number of shareholders of
shareholders of shareholders of preferred
shareholders of preferred stock
common stocks at stock with resumed voting
common stocks at the 18,925 19,314 with resumed 0 0
previous rights at previous
end of the reporting voting right at the
month-end of this month-end of this report’s
period end of the
report’s disclosure disclosure
reporting period
Top 10 shareholders
Quantity of Pledged, marked or
Owners Quantity of
Name Nature restricted frozen stocks
hip stocks
stocks held Status Quantity
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 9.41% 96,181,562 72,136,172
Zhang Yuchun Domestic natural person 8.09% 82,696,357 62,022,268
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
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 2.30% 23,564,385
Investment Fund
Cheng Fang Domestic natural person 1.43% 14,649,108
Tan Jianxun Domestic natural person 1.43% 14,576,833
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
Explanation on the above-mentioned
of Cai Hegao, he independently exercised shareholder rights based on his personal wishes, he has not signed
shareholders’ affiliated relationship or
concerted action agreement or reached a similar agreement or arrangement with Cai Hegao, nor has other
concerted action
concerted action plan, they are not persons acting in concert; Cheng Fang and Tan Jianxun are the sponsors of
shareholders of the Company. Cheng Fang is the sister of Wang Chungang’s wife. In addition, the Company
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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
Not applicable
are engaged in margin trading business
Note: During the reporting period, based on full confidence in the Company’s sustainable and healthy
development and full recognition of the Company’s intrinsic value, Mr. Deng Xijun, the chairman and
general manager of the Company, increased his holdings of the Company’s shares by 975,200 shares
through centralized bidding.
(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
4. Bonds
(1) Bond profile
Balance
Bond name Abbreviation Bond code Date of issue Maturity Coupon rate
(RMB’0,000)
1st year 0.30%
Convertible 2nd year 0.50%
Boshi
Corporate Bonds of 3rd year 1.00%
Convertible 127072 Sep. 22nd, 2022 Sep. 21st, 2028 45,000
Harbin Boshi 4th year 1.50%
Bonds
Automation Co., Ltd. 5th year 1.80%
6th year 2.00%
Bond redemption and interest
payment during the reporting No interest needs to pay during the reporting period.
period
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(2) Top 10 convertible bond holders
Number of
Amount of As % of
convertible
convertible bonds convertible bonds
NO. Name Nature bonds held
held at the period held at the period
at the
end (RMB) end
period-end
1 Deng Xijun Domestic natural person 423,199 42,319,900.00 9.40%
2 Zhang Yuchun Domestic natural person 363,864 36,386,400.00 8.09%
3 Wang Chungang Domestic natural person 252,534 25,253,400.00 5.61%
4 Cai Zhihong Domestic natural person 222,979 22,297,900.00 4.96%
5 Cai Hegao Domestic natural person 220,000 22,000,000.00 4.89%
China Minsheng Bank-Everbright Others
6 Dexin Credit Enhancement Bond-type 218,596 21,859,600.00 4.86%
Securities Investment Funds
Bank of Communication-E Funds Others
7 Robust Returns Fixed-income Pension 209,992 20,999,200.00 4.67%
Products
China Merchant Bank- E Funds Others
8 Fenghua Bond-type Securities 199,019 19,901,900.00 4.42%
Investment Funds
Argriculture Bank of China-Qianhai Others
9 Kaiyuan Convertible Bond-type 111,605 11,160,500.00 2.48%
Initiative Securities Investment Funds
Industrial Commercial Bank of China-E Others
10 Funds Robust Configuration NO.2 109,990 10,999,000.00 2.44%
Hybrid Pension Products
(3)Latest rating and rating change
During the reporting period, on May 5th, 2022, China Lianhe Credit Rating Co., Ltd. issued the Credit Rating
Report of Harbin Boshi Automation Co., Ltd.’s Public Issuance of Convertible Corporate Bonds. The
long-term credit rating of the Company was “AA”, the credit rating of this convertible corporate bond was
“AA”, and the bond rating outlook was “stable”. The credit rating report mentioned above is available at
cninfo.com.cn.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(4) Selected financial information of the Company for the past two years
Unit: RMB’0,000
Increase/Decrease
Item 2022 2021 Explanation
over last year
Liability /asset ratio 46.20% 37.82% 8.38%
Net profit after deducting
non-recurring profit or loss
41,414.34 45,932.82 -9.84%
attributable to shareholders of the
parent company
Mainly due to the issue of convertible
EBITDA/liability ratio 122.32% 1,563.93% -1,441.61% corporate bonds in the current period,
total liabilities increased year-on-year.
Mainly due to the issue of convertible
corporate bonds in the current period,
Interest cover (times) 104.76 403.54 -74.04%
interest expenses increased
year-on-year.
Ⅲ.Important Issues
The China Securities Regulatory Commission passed the Approval on Harbin Boshi Automation Co., Ltd.
nd
Public Offering of Convertible Corporate Bonds (CSRC Permission [2022] No.2035). On September 22 ,
2022, the Company public issued 4.5 million convertible corporate bonds with each face value of RMB 100,
and the total issuance of RMB 450 million.
Shenzhen Stock Exchange approved listing application of the Company’s (Shenzhen Stock Exchange
[2022]1024). On November 3rd, 2022, the Company’s convertible corporate bonds of RMB 450 million was
listed on Shenzhen Stock Exchange. The abbreviation was “Boshi Convertible Bonds”, and the bond code
was “127072”.
Please refer to relevant documents disclosed by the Company on Securities Times and cninfo.com.cn for
details.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
IV. Management Discussion and Analysis
1. The Company’s Industry Status during the Reporting Period
(1) Industry overview
According to the proportion of revenue during the reporting period, the Company’s main businesses in its
industry are shown in the following figure：
The core growth businesses of the Company are intelligent manufacturing equipment and industrial services
rooted in intelligent manufacturing equipment, which belong to high-end equipment manufacturing industry
and modern service industry respectively. Moreover, they are all key industrial directions supported and led
by the State.
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 recent years, with the improvement of 5G, industrial
Internet and other digital economy infrastructures, the Company has accelerated the application of digital and
intelligent technologies mastered by the Company. Now it has the engineering and implementation capability
of the overall solutions of digital workshops and intelligent factories in multiple product application fields.
From the perspective of revenue composition, the revenue of two core growing businesses, intelligent
manufacturing equipment and industrial services, account for 96% of total. The Company’s intelligent
manufacturing equipment are applied in petrochemical, sub-merged arc furnace, new energy, grain, animal
feeds, building materials, medicine, food, port, and many other industries, to provide customers with efficient
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 competitors
in the same volume; In some fields, the Company products and technology applications are in the world
leading level.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
From the perspective of industry, large-scale Chinese manufacturing enterprises generally have automated
production lines, among them, the proportion of digitalization is not high, data sharing is not much from
factories to factories, and intelligent technology is not widely used. The overall level of intelligent
manufacturing in China is still far away from the world’s advanced level. The endogenous power of leading
manufacturing enterprises has a large potential demand for intelligent manufacturing equipment and the
overall solution of intelligent factories, and the market demand presents long-term, sustainable and without
obvious periodicity.
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 recent years, the state issued the 14th Five-Year Plan for Intelligent Manufacturing Development, the 14th
Five-Year Plan for the Development of Robot Industry, the 14th Five-Year Plan for In-depth Integration of IT
Application and Industrialization, the 14th Five-Year Plan for the Development of Digital Economy, “Robot
Plus” Application and Implementation Plan, planning and guiding the high-end equipment manufacturing
industry in the “14th Five-Year Plan” and 2035 long term goals, which provides strong support for
accelerating the construction of a manufacturing power, a digital industry and a digital China and promoting
the development of China’s intelligent manufacturing and digital economy.
The Company implements differentiation competitive strategy (technology leadership), with the
accumulation and industrial application practice in the direction of automation, digital, intelligent technology,
facing the demand of “Made in China” for intelligent equipment, digital workshop, intelligent factory, the
Company concentrates advantage, integrates resources, saves competitiveness, to response and guild the
market demand actively with rich product line and intelligent manufacturing overall solution; The Company
strives to achieve its own relatively fast development and bring consistent returns to shareholders.
Industrial Service：
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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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 customers. The Company’s industrial service revenue
has increased year after year. During the reporting period, the overall revenue of industrial services reached
RMB 639 million, accounted for nearly 30% of total.
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 intelligent equipment industry services have covered all regions except Hong Kong,
Macau, Taiwan and Tibet, the service scale and profitability are in the leading position in the industry. 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 implement stock. On the other hand, this will give an active
response to the customer’s deep service demand, after the Company undertakes and implements new
production and operation industrial service projects, the service scale is expected to continue to step up. This
will enhance the Company’s ability to resist risks and become an important source of revenue and profit for
the Company.
The Company’s industrial service network and capability, surrounding “industrial service plus”, are facing
big potential market opportunities; That is, the Company’s industrial service network is expected to
undertake more industrial service market demand independent from the Company’s own equipments, and
then forming a new industrial direction of intelligent manufacturing equipment enabled with “industrial
service plus”.
Environmental Protection Process and Equipment:
The 14th Five-Year Plan takes “achieving new progress in ecological civilization construction” as one of the
main goals. 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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
environmental protection. 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 contribute to achieve “Carbon Peak” , “Carbon Neutrality” emission reduction targets.
(2) Industry policy impact
In recent years, the state has issued intensive industrial policies and industry plans related to intelligent
manufacturing, robot and digital economy, leading the development of the industry, and the field of
intelligent manufacturing equipment is facing major development opportunities. At the same time, the
technology accumulation and technological innovation of high-end equipment manufacturing enterprises are
constantly improved, and the project implementation ability is becoming increasingly mature. From the
Company’s long-term industrial practice in the field of intelligent equipment industry, the demand of China’s
manufacturing enterprises for intelligent equipment is in the ascendant, and the field of intelligent
manufacturing equipment will continue to flourish.
In January 2023, seventeen departments including the Ministry of Industry and Information Technology,
issued the “Robot Plus” Application Action and Implementation Plan, proposed the density of
manufacturing robot will double compared with 2020, by 2025. The depth and breadth of the application of
service robots and special robots industries have been significantly improved, and the ability of robots to
promote high-quality economic and social development will be significantly enhanced. Focus on 10 key
application areas, break through more than 100 kinds of robot innovation application technology and
solutions, promote more than 200 robot typical application scenarios with high technical level, innovative
application mode and significant application effect, build a batch of “robot plus” benchmarking enterprises,
and construct a batch of application experience centers and experimental verification centers.
In April 2022, the Ministry of Industry and Information Technology, the National Development and Reform
Commission, Ministry of Science and Technology, Ecological Environment Ministry, Ministry of Emergency
Management, the National Energy Administration jointly issued the Guidelines on Promoting High-quality
Development of Petrochemical and Chemical Industries in the 14th Five-Year Plan, pointing out that the
reform and innovation as the fundamental power, plan development and security as a whole, accelerate the
traditional industry transformation, vigorously develop chemical new materials and fine chemicals, speed up
the industrial digital transformation, improve the level of intrinsic safety and clean production, accelerate
quality change, efficiency change, dynamic change in the petrochemical industry, promote our country from
the petrochemical and chemical great power to strong power. One of the main goals set forth in the guideline
is digital transformation, with enterprises in key areas such as petrochemical and coal chemical industries
achieving an automatic rate of over 95% of their main production devices, building about 30 demonstration
factories of intelligent manufacturing and about 50 demonstration zones of intelligent chemical industry. The
guidelines also proposed to promote the digital transformation of industries, accelerate the collaborative
innovative application of new technologies and new models, create characteristic platforms, accelerate the
integration of 5G, big data, artificial intelligence and other next-generation information technologies with the
petrochemical and chemical industry, constantly enhance the acquisition capacity of chemical process data,
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
and enrich the data of enterprise production management, process control, product flow and other aspects,
promote demonstration and guidance, and strengthen industrial Internet empowerment. It has issued
guidelines for the construction of a standard system for intelligent manufacturing in the petrochemical and
chemical industry, and compiled standards for intelligent factories, smart zones etc,. According to the
characteristics of the industry, a number of digital workshops, intelligent factories and smart zones will be
built and selected.
In December 2021, The State Council issued the 14th Five-Year Plan for the Development of Digital
Economy, which defines the guiding ideology, basic principles, development goals, key tasks and safeguard
measures for promoting the healthy development of digital economy during the period. Digital economy is
the main economic form after agricultural economy and industrial economy. It takes data resources as the
key element, modern information network as the main carrier, integrated application of information and
communication technology and all-factor digital transformation as the important driving force, and promotes
a new economic form with more unified fairness and efficiency. According to the plan, the digitalization,
networking and intelligence of the manufacturing industry will be deepened, and the integrated development
of producing services will be accelerated. We will comprehensively deepen the digital transformation of key
industries. Based on the characteristics and differentiated needs of different industries, we will promote
all-round and whole-chain digital transformation of traditional industries and improve total factor
productivity. We will deepen the digital transformation of industry, accelerate the digital transformation of
R&D, design, production and manufacturing, operation and management, and market services across the
whole life cycle, and accelerate the cultivation of a number of small and medium-sized enterprises that are
“specialized and innovative” and individual champions in manufacturing. We will carry out intelligent
manufacturing projects, vigorously promote the digitalization of equipment, carry out special campaigns to
pilot and demonstrate intelligent manufacturing, and improve the national system of intelligent
manufacturing standards.
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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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
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.
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. 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.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
2. Company Main Businesses during the Reporting Period
(1) Main businesses, products, services composition and market application level of the Company
Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory
Post-processing Intelligent Manufacturing Post-processing Intelligent Manufacturing
Equipment for Solid Material 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, new energy, grain, animal feeds, synthetic rubber and natural rubber and in the
building materials, medicine, food, ports etc. (such fields of product refining process, dewatering and
as crushing, screening, bagging, boxing of new drying process (rubber washing, cleaning and
energy field polysilicon reduced silicon rods, etc.), impurity removal, dewatering, crushing and
providing efficient automatic weighing, packaging drying, etc.) and finished product packaging
and palletizing intelligent manufacturing and process (weighing, baling, detecting, conveying,
production equipment and overall solutions of packaging and palletizing, etc.)
smart factories
In the field of post-processing high-end equipment
for powder and granular materials in China it has
obvious advantages and a stable competitive
position. In the field of post-processing high-end Complete product line, covering natural rubber and
equipment for the new energy field irregular synthetic rubber; It is the only supplier which can
polysilicon materials, the original first set of provide complete large-scale systems worldwide.
applications has promoted the upgrade of intelligent
manufacturing in the industry.
Robot Plus Intelligent Logistics, Warehousing Systems
Connecting solid material post-processing
(High temperature) Operation robot for submerged intelligent manufacturing equipment with rubber
arc furnace and serialized intelligent products, post-processing intelligent manufacturing
complete system solutions are applied for high-risk equipment to realize intelligent identification,
working environment as well as other special outbound and inbound warehousing management,
robots and complete system solutions which can logistics transshipment, fully Automatic Vehicle
replace high-risk, harsh working conditions, and Loading, etc., to help customers to build smart
heavy manual labor. factory overall solutions.
(High temperature) Operation robot for
sub-merged arc furnace and its surrounding
systems are in leading position worldwide in the Automatic Loading machine has first-mover
field of calcium carbide; It is carrying out advantage, the market responds positively and no
innovative implementation of the intelligent industry attribute, the large-scale application has
workshop project for the calcium carbide arc big potential in the future.
furnace, committed to promoting the production of
fewer people, unmanned, safe, efficient and
environmental”, and bringing the traditional
industrial technology revolution with industry
subversive technology.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(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 which facing the operation in the application fields of intelligent manufacturing
equipment, after-sales industrial service, and supplementary industrial service.
The Company’s industrial service network and service capability are expected to undertake
other market demand more than the Company’s own in the future and then form a new
industrial direction of “industrial service plus” enabling intelligent manufacturing equipment.
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.
Realizing 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 2022(Abstract）
(2) Business mode
16
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(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 customers (which may include FFS film rolls sales matching with
production services), equipment maintenance, operation maintenance and the like to determine the
contents and modes of services;
For the performance obligations of the service contract performed within a certain period of time, the
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
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;
Other kinds with small revenue are not
classified as material.
Revenue recognition: Usually as per the
contract signed with customer, implement the
contract and meet the revenue conditions, then
confirm the operating revenue.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(3) Key performance driving factors
Since 2017, the Company performance has grown well and rapidly, mainly due to the Company is facing the
strong demand for intelligent manufacturing equipment for the upgrading of digitization and
intellectualization in China’s manufacturing industry. The Company implements technology research and
development and product innovation actively, as well as realizes product category expansions. The sales
growth of post-processing intelligent manufacturing equipment for solid material is strong; Represented by
high-temperature furnace operation robots, the special operation robots and their supporting products are
promoted and applied in the fields of high risk, harsh and heavy working conditions. Contracts from
“robots plus” quickly occupy an important share, which strongly promote the rapid growth of the
Company’s overall performance; The successful R&D and application of post-processing intelligent
equipment for solid material in the field of new energy polysilicon raw materials expended the application
range of post process intelligent manufacturing equipment for irregular material, and the market demand has
exploded; The growth of industrial services, enabling intelligent manufacturing equipment, keeps steadily,
already accounts for 30% of total revenue, and become an important source of revenue and profit. Energy
saving and environmental protection business brings beneficial supplement to the Company’s overall
revenue.
During the reporting period, the operating revenue of intelligent manufacturing equipment and industrial
service continued to grow steadily; The operating revenue of energy conservation, emission reduction and
environmental protection process and equipment declined; The overall operating revenue increased by 1.93%
year-on-year. Affected by the substantial increase of R&D expenses, the decrease of investment income and
the actual receipt of software tax rebates, and other factors, the net profit has decreased by 9.24% year-on-
year. Please refer to “Main Businesses Analysis” for details.
During the reporting period, the demand for irregular material intelligent manufacturing equipment
represented by the intelligent workshop of calcium carbide sub-merged arc furnace and the post processing
intelligent equipment of new energy polysilicon raw materials was strong, and the Company’s marketing
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
work has achieved great results again and again. 2022 is already become history, 2023 has came, the future
deserves more expectations.
Technological innovation and the continuous R&D, application and promotion of new products have realized
“the second curve” to promote the Company to extend growth period. The Company’s intelligent
manufacturing equipment has experienced a continuous technological innovation and the expansion process
of continuous application of new technology and new products. At present, the company has made a progress
in switching from a single machine, automatic production line to the digital factory and intelligent factory in
the main product application field, which optimizing the business competition environment faced by the
Company, and improving comprehensive competitiveness continuously.
The Company’s future performance growth and driving factors are mainly：
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;
②The expansion of production in the field of new energy raw materials polysilicon releases the demand for
irregular material post-processing intelligent equipment, as well as the Company’s continuous research and
development, forming the ability to expand and put into use in multispecies while forming the vertical
product line;
③Facing R&D, demonstration application and expansion of unmanned workshops and intelligent factories,
which are people reduced, unmanned, safe, efficient and environmental, in the field of calcium carbide
④R&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;
⑤ The application of FFS (Form-Fill-Seal) post-processing intelligent manufacturing equipment for solid
materials in the field of PVC and building materials；
⑥With 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;
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;
⑧Phased implementation and continuous industrialization of overall solutions of intelligent factory；
⑨ Technology development, project accumulation and industrialization application of iron and steel
intelligent manufacturing solutions；
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
⑩ The continuous growth of Industrial Services and new undertaking industrial service projects of
production and operation has brought a large increase in the implementation, as well as the use of the
Company’s industrial service network, service capacity, the future is expected to undertake more industrial
service market demand other than the Company’s equipment, and then forming the “industrial service plus”
enabling intelligent manufacturing equipment industry momentum.
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, the Company adheres to a differentiated competitive strategy of leading
technology, and relies on a deep understanding of China’s industrial automation field and practical
experience in industrial applications to maintain a long-term competitive position in the field in which it is
engaged. The Company’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 continually improved.
(1) Industry 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 won a number of industry awards.
(2) Leading 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
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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 manufacturing equipment product line, the Company’s intelligent
equipment has technical advantages of high speed, accuracy and reliability. It 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, among them, partial of the products are in the worldwide leading position.
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.
From the perspective of the overall solution of intelligent manufacturing, the Company integrates
multi-category innovative products with the production scenario of manufacturing customers, which realizes
the overall solution of solid materials post-processing and sub-merged arc furnace smelting products
intelligent manufacturing, help customers realize the digital and intelligent transformation of the factory, and
realize intelligent manufacturing.
Currently, the Company actively implement overall solution of intelligent factories in the field of calcium
carbide sub-merged arc furnace, has respectively signed contracts of calcium carbide post-processing
intelligent factories/workshop with Inner Mongolia Jun Zheng Chemical Co., Ltd., and Ningxia Younglight
Chemical Co., Ltd during reporting period, amounted to RMB 360 million in total, in this field, the Company
is in the leading level in the application all over the world.
(3) Underlying technology accumulation and platform technology to enhance the competitiveness.
Mastering the underlying technology, algorithm and platform technology can form the technical advantage of
rapidly developing different models and functions according to the industry demand, which is the core
technology that the Company must master to implement digital factory, intelligent factory and to realize
industrial digitalization. It can truly realize the independence and controllability of core technology,
continuously promote the implementation of the Company’s technology leading and differentiation strategy,
21
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
and enhance the Company’s core competitiveness.
Legend：Development platform for mobile robot system based on autonomous navigation
Note: This section is schematic diagram, some photos and blurred images, under the premise of technical confidentiality,
are used to enhance investors' understanding of relevant applications, the following is omitted.
Legend：Motion control system
22
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend：Research and development platform of intelligent identification system based on artificial intelligence
Legend：Intelligent inspection and digital vision technology
(4) Performance-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, efficient and advanced industrial service
model 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.
23
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend: The positive interaction between intelligent equipment and industrial service
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 639 million, continued to maintain steady
growth.“Intelligent equipment”+ “industrial services” constitute a performance-driven dual engine for
the Company.
(5) The 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 customers 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,
24
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
market space and potential contract amount is expected to expand for several times.
Legend: Schematic diagram of the competitive environment and potential market opportunities of single unit
equipment, automation production line and overall solution of intelligent manufacturing
For example: in the field of sub-merged arc furnace, the urgent demand for safety production and replacing
labors for calcium carbide industry, based on the industrial robot technology, the Company successfully
developed and applied (high temperature) sub-merged arc furnace operation robot for calcium carbide
which has epoch-making significance to traditional production (“point”), and successively developed
ramming robot for calcium carbide, patrolling robot, intelligent pot transfer technology and other key
production system (“line”), until forming science and technology innovation ability of an intelligent
workshop overall solution that truly subverts the traditional production operations of the industry (“surface”),
realizing few men, unmanned factories and intelligent manufacturing. With the Company’s leading
technological advantage in the field of calcium carbide sub-merged arc furnace, the Company continues to
25
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
develop the application of high temperature special robots in the high temperature furnace operation
environment of industrial silicon furnace, silicon manganese, ferrosilicon, etc., committed to
multi-dimensional technological innovation and breakthrough, and has successively achieved phased results.
(6) Smart workshops, smart factories, and overall solutions further enhance the Company’s
competitiveness.
On April 7th and April 19th, 2022, the Company announced that the Company signed contracts with Inner
Mongolia Junzheng Chemical Co., Ltd. and Ningxia Younglight Chemicals Co., Ltd. respectively on calcium
carbide post-processing intelligent factory and calcium carbide intelligent workshop. The contract amount is
RMB 291.1432 million and RMB 69.628 million respectively, 360.7712 million in total. These two projects
are the overall intelligent factory projects of the Company’s high-temperature special robots as the main
equipment application in the field of calcium carbide production, and the market demand of robot and
intelligent factory industrialization projects is prosperous. The technology, product R&D and
industrialization process from “point”, “line” to “surface” have opened the ceiling of the industry growth,
and truly realized the historic leap from “0” to “1”. In order to facilitate understanding, the following graph
shows the intelligent workshop application technology of some calcium carbide sub-merged arc furnace.
Legend: Intelligent production system for calcium carbide
26
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend：Inspection robot dispatching system applied in high temperature sub-merged arc furnace in calcium carbide.
Legend: AI identification and intelligent lifting and transfer for calcium carbide pot
Taking the intelligent workshop of calcium carbide sub-merged arc furnace as an example, the original
traditional production environment has high risk, high temperature, high content of toxic and harmful gases,
which is not suitable for manual operation, and the labor supply shortage also poses a hidden danger of
production. The Company applies intelligent technologies such as visual recognition, deep learning, robot
control algorithm, expert control strategy, combing industrial Internet communication technology to the
overall solution of intelligent workshop and intelligent factory, in order to achieve fewer people and
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
unmanned workshops, relying on intelligent production decision-making management, the Company helps
customers to produce safely and efficiently, and promotes the upgrading of intelligent manufacturing
industry in related industries. At present, the Company is implementing the intelligent factory of calcium
carbide sub-merged arc furnace actively. It can be predicted that if the project can be implemented and
delivered smoothly, first of all, it realizes the manual operation of high-tech products to replace the
dangerous, harsh and heavy working conditions, promotes the reform of production mode, and improves the
safety production welfare of workers, which is of great significance to the calcium carbide industry;
Secondly, the overall market space of intelligent factory can form several times and ten times the market size
of the original high temperature furnace robot; the technology formed by the overall solution of calcium
carbide furnace can be further applied to other fields of silicon manganese, ferrosilicon and industrial silicon
furnace, with broader development space to improve economic and social benefits comprehensively.
The Company’s ability and leading advantage in the intelligent workshop, the intelligent factory and the
overall solution further enhance the competitiveness of the Company.
(7) Brand competitiveness
The Company builds brand with quality, seeks progress with technology, and wins trust with service.
Through high-quality products and efficient services, we strive to realize production automation and
intelligent manufacturing for customers and achieve win-win cooperation. The Company’s brand enjoys a
constant leading in popularity, high reputation and customer loyalty in the main domestic product application
fields. The Company pursues excellence, leads the development of intelligent equipment in the application
industry and builds up a stable, 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.
(8) Achievements in intellectual property, proprietary technology and software copyright.
During the reporting period, the Company obtained 43 patents approved by the State Intellectual Property
Office, including 5 invention patents and 38 utility model patents; 23 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. (Note: The amount of intellectual property
acquired during the reporting period may have a slight deviation due to the limitation of statistical time
points, and is only for investors’ trend reference.)
(9) Social and economic benefits
The transformation of traditional industries with high technology is the responsibility and mission given to
technological innovation enterprises by the era. The Company’s overall solution of intelligent manufacturing
in the field of calcium carbide submerged arc furnace and automatic vehicle loading machine widely used in
the national economy field have transformative impact on replacing manual operations in high-risk or heavy
manual working conditions to achieve safe production and improve production efficiency. Meanwhile,
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
standardized intelligent equipment operations improve the capacity utilization rate, enhance the enterprise
efficiency significantly, and support the early realization of the national double carbons goal.
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.
4. Main Businesses Analysis
(1) Overview
In 2022, facing the complex and volatile world political and economic situation, the Chinese economy, with
its strong resilience and vitality, effectively responded to the multiple negative factors, continued to maintain
growth, and improved the quality of development steadily.
During the reporting period, driven by the expansion of multiple product categories formed by the
Company’s continuous R&D and product innovation over the years, the market demand was effectively
stimulated. Represented by the intelligent factory of calcium carbide sub-merged arc furnace represented by
the application of high temperature special operation robots the post processing intelligent manufacturing
equipment of solid material for new energy polysilicon raw materials, the Company’s marketing work
continued to achieve good results. From the perspective of product delivery and revenuer confirmation, the
operating revenue of intelligent manufacturing equipment and industrial service continued to grow steadily;
The operating revenue of energy conservation, emission reduction and environmental protection process and
equipment declined; The overall operating revenue was RMB 2.154 billion, increased by 1.93% year-on-year.
Affected by the substantial increase of R&D expenses, the decrease of investment income and the actual
receipt of software tax rebates, and other factors, the net profit attributed to the parent company’s
shareholders was RMB 445 million, decreased by 9.24% year-on- year. The Company’s weighted average
return on equity (ROE) was 14.70%. From the perspective of revenue composition, the Company’s
intelligent manufacturing equipment, industrial services, environmental protection process and equipment in
the overall revenue accounted for 65.88%, 29.67% and 4.45%, respectively.
During the reporting period, the Company increased R&D inputs, implemented “point → line → surface”
R&D path, constantly promotes the Company’s intelligent manufacturing equipment products market
competitiveness. In “robot plus” applications, for example, the Company’s formed horizontal expansion
application which expended “high temperature calcium carbide special operation robot” plus to “intelligent
factory of calcium carbide sub-merged arc furnace”, “high temperature calcium carbide special operation
robot technology” plus to high temperature operation robot applied in the silicon manganese, silicon,
industrial silicon furnace.
In 2022, the market demand of the Company’s main intelligent manufacturing equipment product application
field presents a thriving scene, and the market sales create the best performance in history. Under the
industrial opportunity of the integration of national advanced manufacturing industry and modern service
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
industry, the Company’s industrial service business has grown steadily. In recent years, with the strong
demand for intelligent manufacturing in China, the Company’s intelligent manufacturing equipment and
industrial services will usher in a golden period of vigorous development.
During the reporting period, the main operating data and main financial indicators realized by the Company
are listed as follows
Unit：RMB
Item 2022 2021 Year-on-year growth
Operating revenue 2,153,746,152.69 2,112,954,813.09 1.93%
Operating profit 514,097,879.71 606,367,149.42 -15.22%
Total profit 512,038,672.63 602,667,181.89 -15.04%
Net profit 447,749,302.48 519,891,603.82 -13.88%
There of: Attributable to shareholders of the
445,038,600.37 490,327,299.72 -9.24%
parent company
(2) Operating revenue and cost of sales
① Breakdown of operating revenue
Unit：RMB
2022 2021 Increase/Decre
ase over the
Proportion of Proportion
Amount Amount same period of
revenue of revenue
previous year
Total 2,153,746,152.69 100% 2,112,954,813.09 100% 1.93%
Categorized by industry
Intelligent manufacturing
1,418,872,768.27 65.88% 1,266,408,937.97 59.94% 12.04%
equipment
Industrial service 639,013,258.02 29.67% 615,136,150.55 29.11% 3.88%
Environmental protection process and
95,860,126.40 4.45% 231,409,724.57 10.95% -58.58%
equipment
Categorized by product
Post-processing intelligent
manufacturing equipment for solid 944,248,796.84 43.84% 1,076,067,947.76 50.93% -12.25%
material
Post-processing intelligent 221,798,420.60 10.30% 85,341,631.07 4.04% 159.89%
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
manufacturing equipment for rubber
Robots plus 195,549,679.66 9.08% 71,266,194.64 3.37% 174.39%
Intelligent logistics, warehousing
57,275,871.17 2.66% 33,733,164.50 1.60% 69.79%
systems
Operation and after-sales type
530,485,359.25 24.63% 510,764,252.99 24.17% 3.86%
industrial services
Supplementary industrial services and
108,527,898.77 5.04% 104,371,897.56 4.94% 3.98%
others
Environmental process and complete
95,860,126.40 4.45% 231,409,724.57 10.95% -58.58%
equipment
Categorized by region
Region of east China 880,640,289.07 40.89% 920,045,613.84 43.54% -4.28%
Region of south China 116,994,995.52 5.43% 80,463,697.92 3.81% 45.40%
Region of central China 50,027,352.95 2.32% 68,402,243.85 3.24% -26.86%
Region of north China 337,846,315.45 15.69% 272,848,423.22 12.91% 23.82%
Region of northwest China 505,048,427.65 23.45% 419,504,329.00 19.85% 20.39%
Region of southwest China 94,240,219.62 4.38% 88,684,181.22 4.20% 6.26%
Region of northeast China 155,254,832.09 7.21% 198,464,281.36 9.39% -21.77%
Overseas 13,693,720.34 0.63% 64,542,042.68 3.06% -78.78%
Categorized by sales model
Direct sales 2,153,746,152.69 100% 2,112,954,813.09 100% 1.93%
Note: In the product data category names of the companies in the above table and below, “robot plus”
replaces the original classification name of “robot and complete system equipment”. The data classification
method does not change, which helps to define the product classification connotation more accurately, and
communicate with investors to facilitate more concisely and efficiently.
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
②Industries, products, regions or distribution model accounting for more than 10% of company revenue or
operating profit.
Unit：RMB
Operating Gross profit
Cost of sales
revenue margin
increased or
Operating Gross profit increase/ increased or
Cost of sales decreased over
revenue margin decrease over decreased over
the same period
the same period the same period
of previous year
of previous year of previous year
Categorized by industry
Intelligent manufacturing
1,418,872,768.27 850,958,646.60 40.03% 12.04% 11.47% 0.31%
equipment
Industrial service 639,013,258.02 470,283,379.64 26.40% 3.88% 7.52% -2.49%
Environmental protection
95,860,126.40 35,470,178.10 63.00% -58.58% -65.44% 7.35%
process and equipment
Categorized by product
Post-processing intelligent
manufacturing equipment for 944,248,796.84 593,042,327.08 37.19% -12.25% -9.38% -1.99%
solid material
Post-processing intelligent
manufacturing equipment for 221,798,420.60 108,494,545.67 51.08% 159.89% 114.47% 10.36%
rubber
Robots plus 195,549,679.66 106,290,073.93 45.65% 174.39% 200.37% -4.70%
Intelligent logistics,
57,275,871.17 43,131,699.92 24.69% 69.79% 88.07% -7.33%
warehousing systems
Operation and after-sales type
530,485,359.25 374,863,288.95 29.34% 3.86% 7.34% -2.29%
industrial services
Supplementary industrial
108,527,898.77 95,420,090.69 12.08% 3.98% 8.20% -3.42%
services and others
Environmental process and
95,860,126.40 35,470,178.10 63.00% -58.58% -65.44% 7.35%
complete equipment
Categorized by region
Region of east China 880,640,289.07 524,061,866.43 40.49% -4.28% 0.05% -2.58%
Region of south China 116,994,995.52 74,627,976.08 36.21% 45.40% 42.53% 1.28%
Region of central China 50,027,352.95 28,536,276.51 42.96% -26.86% -34.77% 6.92%
Region of north China 337,846,315.45 214,276,648.47 36.58% 23.82% 27.18% -1.67%
Region of northwest China 505,048,427.65 351,571,278.93 30.39% 20.39% 14.15% 3.81%
32
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Region of southwest China 94,240,219.62 62,396,050.17 33.79% 6.26% -5.29% 8.08%
Region of northeast China 155,254,832.09 92,169,915.67 40.63% -21.77% -9.39% -8.12%
Overseas 13,693,720.34 9,072,192.08 33.75% -78.78% -77.00% -5.14%
Categorized by sales model
Direct sales 2,153,746,152.69 1,356,712,204.34 37.01% 1.93% 4.09% -1.30%
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 reasons of operating revenue and gross profit rate change are as follows:
Intelligent manufacturing equipment: Although the domestic economy was impacted by multiple factors
beyond expectation during the reporting period, the overall performance of the Company’s intelligent
manufacturing equipment reached a new record high, achieving operating revenue of RMB 1.419 billion, a
year-on-year growth of 12.04%. With the outstanding competitive advantage of products, the gross profit
margin continued to improve, maintaining an excellent level of 40.03%. In specific categories,
post-processing intelligent manufacturing equipment for solid material affected by product delivery, achieved
operating revenue of RMB 944 million, decreased 12.25% year-on-year; The revenue and profit of
post-processing intelligent manufacturing equipment for rubber reached the best level in history, moreover,
the Company showed its advantages of large scale complete system in this field, and its revenue increased by
159.89% year-on-year, reaching RMB 222 million; “Robot plus” products with a year-on-year growth rate
of 174.39%, rapidly recovered to grow, revenue scale is close to RMB 200 million; The revenue scale of
intelligent logistics and warehousing system exceeded RMB 50 million, reaching RMB 57.28 million for the
first time, moreover, compared with the number of orders in hand several times to the current revenue, it has
great potential for future growth, and its current gross profit rate is also expected to increase.
Industrial services: Affected by multiple factors, the operating revenue of industrial services in the reporting
period was RMB 639 million, with a year-on-year increase of 3.88%, accounting for 29.67% of the
Company’s overall revenue; Affected by the negative fluctuation of service performance cost, under this
pressure, the gross profit margin of industrial services was 26.40%.
During the reporting period, environmental protection process and equipment were consistent with the
expectations in the interim report, and their contribution to the overall performance of the Company
decreased significantly, accounting for 4.45% of the Company’s revenue, which had a great negative impact
on the overall revenue growth of the Company. Its gross profit margin was high affected by high gross profit
margin of process package confirmed in the reporting period, and remained at a high level.
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
33
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
acceptance progress, etc. It is not a typical fluctuation of gross profit rate divided by region, please refer to
explanation of operating revenue and gross profit rate changes for details.
(3) Cash Flows
Unit: RMB
Item 2022 2021 Change (%)
Sub-total of cash inflows from
2,519,478,243.51 2,195,949,278.34 14.73%
operating activities
Sub-total of cash outflows from
2,067,946,277.31 1,796,176,147.59 15.13%
operating activities
Net cash flows from operating
451,531,966.20 399,773,130.75 12.95%
activities
Sub-total of cash inflows from
2,476,439,835.45 3,272,188,250.40 -24.32%
investing activities
Sub-total of cash outflows from
2,751,087,752.50 3,262,951,780.24 -15.69%
investing activities
Net cash flows from investing activities -274,647,917.05 9,236,470.16 -3,073.52%
Sub-total of cash inflows from
493,090,000.00 25,430,000.00 1,839.01%
financing activities
Sub-total of cash outflows from
309,612,826.81 253,238,879.24 22.26%
financing activities
Net cash flows from financing
183,477,173.19 -227,808,879.24 180.54%
activities
Net increase in cash and cash
366,262,667.59 176,865,966.98 107.08%
equivalents
Explanation of why any of the data above varies significantly:
√Applicable □Not applicable
①Net cash flows from operating activities is 451.532 million, increases 12.95% compared with which of the
same period of last year, mainly affected by the rapid growth of orders, customer advance payments and
sales collection.
②Net cash flows from investing activities is -274.6479 million, decreases 3,073.52% compared with which
of the same period of last year, mainly due to the impact of cash management activities;
③Net cash flows from financing activities is 183.4772 million, increases180.54% compared with which of
the same period of last year, mainly due to the impact of fund raised from issue of convertible corporate
bonds during this period.
34
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Explanation of why net cash flows from operating activities vary significantly from net profit for the
reporting period:
□ Applicable √ Not applicable
2. Analysis of Assets and Liabilities
(1)Significant Changes in Asset Composition
Unit: RMB
31 December 2022 1 January 2022
Increase/
Proportion Proportion Decrease in Major changes
Amount of total Amount of total
proportion
asset asset
Cash at bank and on Due to the increase in ending
659,606,109.17 10.60% 293,516,532.24 5.99% 4.61%
hand balance of bank deposits.
Accounts receivable 856,529,854.29 13.77% 686,517,240.24 14.00% -0.23%
Due to the increase in amount of
Contract assets 124,651,440.99 2.00% 65,959,231.77 1.35% 0.65%
product warranty.
Inventories 1,912,047,999.38 30.74% 1,634,635,126.78 33.35% -2.61%
Investment properties 6,373,135.42 0.10% 6,765,974.62 0.14% -0.04%
Long-term equity
397,830,998.40 6.40% 368,931,927.57 7.53% -1.13%
investments
Fixed assets 192,561,428.46 3.10% 227,527,890.89 4.64% -1.54%
Construction in Due to investments in
27,241,137.26 0.44% 0.00 0.00% 0.44%
progress construction projects.
Due to the increase in the lease
Right-of-use assets 2,349,347.56 0.04% 1,536,107.89 0.03% 0.01%
of factory of subsidiaries.
Short-term borrowings 31,830,000.00 0.51% 25,130,000.00 0.51% 0.00%
Due to increases in orders and
Contract liabilities 1,725,223,007.33 27.74% 1,183,763,174.21 24.15% 3.59%
prepayments from customers.
Major Assets Overseas
□Applicable √Not applicable
35
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(2) Assets and liabilities measured at fair value
Unit: RMB
Amount
Profit or loss
Cumulative fair provided
from change in Other
Opening value change for Purchased in the Sold in the
Item fair value chang Closing balance
balance charged to impairme period period
during the es
equity nt in the
period
period
Financial assets
Financial asset
held for
trading
845,595,470.49 5,949,267.94 8,954,738.43 0.00 2,552,060,000.00 2,135,480,000.00 1,268,124,738.43
(excluding
derivative
financial )）
Investments in
other equity 54,843,027.56 2,634,336.54 29,951,048.10 0.00 0.00 0.00 57,477,364.10
instruments
Sub-total of
900,438,498.05 8,583,604.48 38,905,786.53 0.00 2,552,060,000.00 2,135,480,000.00 1,325,602,102.53
the above
Financial
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 monetary fund and structural bank
deposits, for cash management of temporarily unused self-owned and raised funds, based on the
resolution of the Board of Directors and the Board of Shareholders.
Whether there were any material changes on the measurement attributes of major assets of the company
during the reporting period
□ Yes √ No
36
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(3)Restricted asset rights as of the end of this Reporting Period
Book value at the
Item Limitation reason
end of period（RMB）
Cash at bank and on hand 3,006,083.02 Bank deposit held on letter of guarantee.
Cash at bank and on hand 6,800.00 Minimum deposit of ETC toll bank account.
Bills receivable 6,700,000.00 Bank acceptance discount is not terminated for confirmation.
Intangible assets 3,972,983.62 Land use right used for mortgaged bank loans.
Mortgage of holding subsidiary Nanjing Green and Boao Environment’s real
Fixed assets 20,015,559.35
estate to the bank for credit, which used for bank loans or letter of guarantee.
Total 33,701,425.99
3. Investment Made
(1)Total investment amount
√Applicable □Not applicable
Total investment amount of the Total investment amount of the same
Change
Reporting Period (RMB) period of last year (RMB)
397,830,998.40 368,931,927.57 7.83%
The investments above are all investments made by the Company in associates or joint ventures.
(2)Significant equity investment made in the reporting period
□Applicable √Not applicable
(3)Significant non-equity investments ongoing in the reporting period
□Applicable √Not applicable
(4)Financial investments
①Securities investments
□Applicable √Not applicable
No such cases in the reporting period.
37
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
②Derivatives investments
□Applicable √Not applicable
No such cases in the reporting period.
(5) Use of Raised Funds
① Overall usage of funds raised
Unit: RMB’0,000
Proporti
Total Accumul on of Amount
Total
funds Accum ative accumul of funds
Total funds Total The usage and
Way of used in ulative funds ative raised
Year funds with unused destination of
raising the fund with funds idle for
raised usage funds unused funds
Current used usage with over two
changed
Period changed usage years
changed
The Company shall
Issuance of conduct special account
2022 convertible 44,341.86Note 18,078.85 18,078.85 0 0 0.00% 26,399.48 management and cash 0
corporate bonds management for the
funds not yet used.
Total -- 44,341.86 18,078.85 18,078.85 0 0 0.00% 26,399.48 -- 0
Explanation of overall usage of funds raised
st
As of December 31 , 2022, the Company raised fund has used a total amount of RMB180.7885 million (excluding the deducted issuance expenses of
RMB 6.5814 million), and the raised funds has not used of RMB 263.9948 million (including income from the cash management of the raised funds).
The cash management income included in the unused funds is RMB 1.3647 million.
Note：Total fund raised is the net amount after deducting issuance expenses.
② Commitment projects of fund raised
Unit: RMB’0,000
Accumulati
Investme Investment
Investment ve
nt schedule as
Committed amount investment Date of reaching
Committed investment project and super raise amount the
investment after amount as intended use of the
fund arrangement in the period-end
amount adjustment of the project
reporting (3)＝
(1) period-end
period (2)/(1)
(2)
1.Robot and intelligent factory industrialization
16,000.00 16,000.00 1,500.98 1,500.98 9.38% September 30th,2024
production project.
2. Sub-merged arc furnace smelting robot and its
9,000.00 9,000.00 2,842.94 2,842.94 31.59% June 30th,2025
intelligent factory R & D demonstration project.
3.Project of technology innovation and service
7,000.00 7,000.00 1,393.07 1,393.07 19.90% November 30th,2023
center (R&D center)
4.Supplementary working capital 12,341.86 12,341.86 12,341.86 12,341.86 100.00% Not applicable
Total 44,341.86 44,341.86 18,078.85 18,078.85 -- --
38
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
③Re-purposed raised funds
□Applicable √Not applicable
No such cases in the reporting period.
(6) Related investment progress
① Investment in high-end medical diagnosis and treatment equipment.
Celiac minimally invasive surgical robot: The celiac minimally invasive surgical robot project of Harbin Si
Zhe Rui Smart Medical Equipment Co., Ltd., which is invested and participated by the Company, at the end
of reporting period, holds 13.46% of its equity. Electric endoscopic needle forceps (name of registration
certificate) has been approved in January, 2021 for medical device registration certificate issued by the State
Drug Administration; The intraperitoneal endoscopic surgical system (name of registration certificate) has
obtained medical device registration certificate issued by the State Drug Administration in June, 2022.
Image-guided radiotherapy precise positioning: The image-guided radiotherapy precise positioning project of
Jiangsu Rayer Medical Technology Co., Ltd., invested by the Company, at the end of reporting period holds
its 14.04% equity. The project obtained the registration certificate of IGPS-O, IGPS-V image-guided
radiotherapy positioning system issued by the State Food and Drug Administration in March 2016. In
February 2020, the Optical Guidance Tracking System (OGTS) has obtained medical device registration
certificate issued by the State Drug Administration
Remote assisted minimally invasive pedicle implantation robot: the remote assisted minimally invasive
pedicle implantation robot project of Suzhou Zoezen Robot Co., Ltd., invested and participated by a
wholly-owned subsidiary of the Company, at the end of reporting period, the Company holds 7.18% of its
equity. The main R&D product of the project, Navigation and positioning equipment for spinal surgery has
obtained medical device registration certificate issued by the State Drug Administration in February, 2022.
The field of high-end medical diagnosis and treatment equipment project is characterized by long
research and development cycle, high barriers to enter, long product registration cycle, and big
clinical risks. There are many risk factors that cannot be determined during type testing and clinical
trials. For the registered projects, there is also a risk whether the promotion and industrialization can
meet the expectation. Hereby, investors are advised to carefully evaluate the relevant risk factors.
② Progress of the robot equity investment fund
In 2015, the Company participated in the establishment of Dongguan Boshi Ruidexin Robot Equity
Investment Fund, and established Dongguan Boshi Ruidexin Robot Equity Investment Center (limited
partnership). The total investment of Boshi was RMB 60 million, accounting for 30% of the subscribed
investment of the fund. By the end of the reporting period, Boshi had received RMB 60 million of project
investment returns and profit distribution, the earnings are good.
39
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
③ The Progress of enterprises invested by the Company’s declare to IPO
Shanghai Bloom Technology Co., Ltd., which is invested by the Company, currently has a registered capital
of RMB 50 million. The Company holds 19.20% of its equity and is a non-controlling shareholder. In
September 2022, the A-shares IPO application materials of Bloom Technology’s on the main board have
been officially accepted by the China Securities Regulatory Commission. According to the current policy
requirements, it has been transferred to the Shanghai Stock Exchange, and is currently in the review stage of
the Shanghai Stock Exchange.
Harbin Sizherui Intelligent Medical Equipment Co., Ltd, which is invested by the Company, currently has a
registered capital of RMB 150 million, the Company holds 13.46% of its equity and is a non-controlling
shareholder. In October 2022, the application materials of Sizherui Medical’s initial public offering and
listing on the Science and Technology Innovation Board have been officially accepted by the Shanghai Stock
Exchange, and it is currently in the review stage of the Shanghai Stock Exchange
V. The Company’s Outlook for Future Development
1. Focus on the intelligent manufacturing industry direction
“Manufacturing is the main body of the national economy, the foundation of building the country, the
instrument of rejuvenating the country and the foundation of strengthening the country”, “The 14th
Five-Year Plan” Intelligent Manufacturing Development Plan , the“14th Five-Year Plan ”Robot Industry
Development and Plan Implementation Plan of the “robot plus” Application Action 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 in many fields, has become the
first choice of backbone enterprises in the industry.
Entering the 21st century, especially in recent years, a new round of scientific and technological revolution
and industrial transformation has occurred rapidly. 5G communication network, industrial Internet
information technology, new materials, big data, cloud computing, deep learning, artificial intelligence and
other digital economy infrastructure technologies have advanced by leaps and bounds, which provide reliable
technical support and realization possibility for the Company to accelerate the transformation of products
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
from “automation” to “digital” and “intelligent”. The Company grasps the opportunity of the times,
integrates advanced manufacturing and information technology, and enables the digital, intelligent and green
development of manufacturing industry. In recent years, the Company’s main products have realized the
expansion from intelligent manufacturing equipment to the digital workshop and intelligent factory, opening
the ceiling of the industry growth, marketing work has repeatedly achieved the good results, and 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 technology security with independent and controllable means,
integrate with social resources, accelerate the Company’s R&D in intelligent manufacturing equipment,
expand industrial service business, and promote China’s equipment industry development; Replace manual
operation under high-risk and heavy environment, realize intelligent manufacturing production requirement
of fewer people, unmanned, safe, efficient and environmental in intelligent equipment application scenarios ,
drive labor production civilization progress; Contribute to society, return for shareholders, bring well-being
for employees, and strive to achieve good 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.
(1) Digital intelligent manufacturing equipment based on 5G and industrial Internet technology
China is a major manufacturing country, and high-quality industrial development is imminent. Changing the
development mode, optimizing the economic structure and transforming the growth drivers have entered a
critical period. The rise of brands “Made in China” and the huge potential of domestic demand give us
confidence in the future 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.
41
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend: Schematic diagram for overall solution of post-processing intelligent manufacturing equipment for solid material
The overall solution of post-processing intelligent manufacturing for solid material includes weighing,
packaging, palletizing, film hooding, digital outbound & inbound, intelligent loading, and control system 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.
② Overall solution of intelligent factories.
Legend: Schematic diagram for overall solution of intelligent factories
42
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend: Digital workshop network system diagram
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 fewer people, 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.
43
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend: Schematic diagram for intelligent manufacturing equipment and intelligent plant solutions covering
all categories of polysilicon.
(2) “Robot plus” manual substitution under high-risk, heavy and harsh working environment.
In January 2023, the Ministry of Industry and Information Technology, 17 departments jointly issued the
Implementation Plan of the “robot plus” Application Action. According to the plan, by 2025, the density of
manufacturing robots will double from 2020, the application depth and breadth of service robots and special
robots will be significantly improved, and the ability of robots to promote high-quality economic and social
development will be significantly enhanced. Focusing on the top 10 key application areas led by the
manufacturing industry, breaking through more than 100 kinds of robot innovative application technologies
and solutions, promoting more than 200 typical robot application scenarios with high technical level,
innovative application mode and significant application results, and creating a number of “robot plus”
application benchmarking enterprises.
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 employment problems raised by manufacturing
enterprises. 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. In the future, the Company will have
great potential for high temperature special robots represented by sub-merged arc robots, tamping robots and
inspection robots.
① Calcium carbide high temperature special operation robot ╋ post-processing intelligent factory for
calcium carbide finished product
44
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Legend: Schematic diagram of Sub-merged arc robot and tamping robot replacing manual operation replacing manual operation
The application effect of the Company’s self-innovated and developed (high temperature) operation 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 in traditional discharging link
to realize fewer people, unmanned, safe, efficient, environmental intelligent manufacturing production
requirements, truly realize the transformation of traditional industries with high-technology, and promote the
industrial upgrading of intelligent manufacturing. During the reporting period, the Company has made
significant market progress in the direction of intelligent factory of calcium carbide sub-merged arc furnace,
and has signed post-processing intelligent factory / workshop contracts of calcium carbide finished products
with Inner Mongolia Junzheng Chemical Co., Ltd. and Ningxia Younglight Chemical Co., Ltd., respectively,
with a total contract value of RMB 360 million. At present, the Company is actively implementing and
striving for the early realization of the first application of industry technological change.
② The application of “special operation robot plus of other high temperature operation environment
of sub-merged arc furnace.”
On the basis of the successful R&D of high temperature special operation robots in the field of calcium
carbide sub-merged arc furnace and the application of intelligent factory technology, the Company continues
to develop high temperature special operation robots in the field of silicon manganese, ferrosilicon, industrial
silicon furnace and other sub-merged arc furnace, and has achieved phased results.
Silicon manganese sub-merged arc furnace field: The first silicon manganese high-temperature special
operation discharging robot has completed the optimization work after the acceptance inspection, and the
structural design of a new silicon manganese robot model has been started.
Ferrosilicon sub-merged arc furnace field: For ferrosilicon disk casting system, the first set has been
delivered to customers and entered the subsequent market promotion stage, and small-batch orders have been
signed; the ferrosilicon high-temperature special operation robot has finalized the product at the application
site.
45
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Industrial silicon sub-merged arc furnace field: The first industrial silicon high-temperature special operation
discharging robot has been delivered to customers’ site and completed site test, and entered the subsequent
market promotion stage, and has signed small-batch orders.
High temperature calcium carbide sub-merged arc robot→ calcium carbide tamping robot→ calcium
inspection robot→ post-processing intelligent workshop for calcium carbide finished products.
High temperature environment of calcium carbide sub-merged arc furnace → high temperature furnace
robots of silicon manganese, ferrosilicon and industrial silicon furnace are expected to form applications of
intelligent overall solution in these fields in the future.
The Company’s R&D and industrial application of high-temperature special operation robots can effectively
open the ceiling of the growth of the industry, and the market space is expanded by several times and ten
times, realize the transformation of traditional industries with high-tech products, and truly realize the
research and development, demonstration and promotion and application of “robot plus”.
③ 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
customers to concentrate resources, improve their logistics automation ability, improve production efficiency
and release production potential. Customers’ 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 customers concentrated
resources, improve production efficiency, release production potential. The advantage is obviously
remarkable under the conditions of labor shortage, harsh loading environment, and customers’ feedback and
46
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
market development continue to improve.
④ The overall solution of steel intelligent manufacturing.
The Company’s holding subsidiary Hunan Boshi Automation Equipment Co., Ltd., focuses on intelligent
manufacturing equipment technology and product application in the field 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 intelligent manufacturing
solutions in the steel industry.
Legend: Schematic diagram of each unit system of steel intelligent manufacturing solution
(3)Industrial service of intelligent equipment and “industrial service plus”
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. The Company’s integrated industrial
services and intelligent manufacturing equipment sales form a benign interaction, promote each other,
enhance customer loyalty, and effectively extend the industrial chain. Although the Company’s industrial
service revenue reached RMB 639 million, continuing to maintain growth, compared with the Company’s
huge potential customer scale in China, the penetration rate of production integration operation services is
still very low, and the future growth potential is huge.
47
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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.
The Company’s industrial services have covered all regions except Hong Kong, Macau, Taiwan and Tibet,
with an industrial service network and industrial service capacity of more than 2,600 service personnel. At
present, the Company’s industrial service network mainly serves the Company’s product customers. While
contributing considerable income and profits to the Company, the commercial value of the Company’s
industrial service network resources is paid attention to by more and more customers and foreign-owned
enterprise groups.
The Company’s industrial service network and service capability, have the possibility to undertake industrial
service business opportunities other than the Company’s products to achieve the “industrial service plus”, the
future is worth expecting.
3. Business Outlook in 2023
Since 2017, the Company has continuously increased the investment in R&D of product technology, realized
the expansion of multiple product categories, and met the strong market demand well. The operating
performance has shown a sustained and rapid growth trend, and the operating revenue has successively stood
at a new level of 1 billion and 2 billion.
In 2022, although China’s economic development suffered multiple, uncontrollable and negative factors, the
Company was affected in product delivery and revenue confirmation, however, with the help of continuous
research and development and product innovation, marketing, whether in traditional business sector, or in the
robot and intelligent factory sector, as well as the new energy intelligent manufacturing equipment sector, has
achieved the historical best success, and the orders are abundant and the performance is expecting.
Looking forward to 2023, the market demand and orders will continue to maintain a strong momentum of
development, and the Company has the foundation, the ability and the confidence to achieve the overall
growth of operating performance.
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 customers 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
48
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
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
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 the Company 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 and technology differentiation strategy in the
field where the Company 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 that “robot plus” and China intelligent equipment demand is less than expected.
49
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
In recent years, the State has intensively issued the 2025 and 2035 China intelligent manufacturing industry
development planning goals and robot plus application action implementation plan. As the dominant
enterprise, the Company represents the domestic leading level in the field of product application, and some
products are leading in the world. The national intelligent manufacturing industry related plan will take the
lead to implement in the advantageous enterprises in the industry, and the Company will face many
development opportunities in the future. However, China “faces many difficulties and challenges in its
development, increasing uncertainties in the external environment, global inflation is still high, the
momentum of world economic and trade growth is weakening, and external repression and containment are
rising”. These factors or unforeseeable factors affect China’s demand for high-end intelligent manufacturing
equipment in the future, constitute one of the risk factors restricting the Company’s medium and long-term
performance.
(5) The risk of technology confidentiality and unfair competition.
Technology leading is one of the important competitive strategies and competitive advantages of the
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.
50
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
VI. Financial statements
(1) Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB
Item Dec 31, 2022 Jan 1, 2022
Current assets:
Cash at bank and on hand 659,606,109.17 293,516,532.24
Financial assets held for trading 1,268,124,738.43 845,595,470.49
Derivative financial assets
Bills receivable 307,322,625.28 229,646,179.07
Accounts receivable 856,529,854.29 686,517,240.24
Financing receivables 111,064,333.27 79,149,044.16
Prepayments 139,594,005.25 122,894,199.23
Other receivables 29,316,161.67 15,263,337.81
Thereof: Interest receivable
Dividend receivable 2,601,281.28
Inventories 1,912,047,999.38 1,634,635,126.78
Contract assets 124,651,440.99 65,959,231.77
Assets held for sale
Non-current assets due within one year
Other current assets 8,781,928.47 102,006,478.67
Total current assets 5,417,039,196.20 4,075,182,840.46
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 397,830,998.40 368,931,927.57
Other equity instruments investments 57,477,364.10 54,843,027.56
Other non-current financial assets
Investment properties 6,373,135.42 6,765,974.62
Fixed assets 192,561,428.46 227,527,890.89
Construction in progress 27,241,137.26
Productive biological assets
51
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Oil and gas assets
Right-of-use assets 2,349,347.56 1,536,107.89
Intangible assets 57,090,300.02 59,203,985.82
Development costs
Goodwill 1,120,909.26 57,640,668.16
Long-term deferred expenses 84,955.75
Deferred tax assets 40,346,009.83 33,545,799.43
Other non-current assets 20,759,073.65 16,767,197.42
Total non-current assets 803,234,659.71 826,762,579.36
Total assets 6,220,273,855.91 4,901,945,419.82
Current liabilities:
Short-term loans 31,830,000.00 25,130,000.00
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 227,581,839.47 169,654,369.55
Advances from customers 96,750.00 93,199.97
Contract liabilities 1,725,223,007.33 1,183,763,174.21
Employee benefits payable 70,475,565.86 55,640,882.93
Taxes payable 54,028,725.59 50,017,507.87
Other payables 3,035,031.46 1,310,296.34
Thereof: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 2,097,594.87 15,584,251.66
Other current liabilities 119,463,543.08 87,335,615.64
Total current liabilities 2,233,832,057.66 1,588,529,298.17
Non-current liabilities:
Long-term loans
Bonds payable 415,824,511.11
Thereof: Preference shares
Perpetual debts
Lease liabilities 364,078.19
Long-term payable 6,000,000.00
52
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Long-term employee benefits payable
Provisions 5,195,263.40 4,202,180.70
Deferred income 4,781,549.13 8,369,857.05
Deferred tax liabilities 14,377,363.26 13,350,055.20
Other non-current liabilities 199,568,192.56 233,253,274.34
Total non-current liabilities 639,746,879.46 265,539,445.48
Total liabilities 2,873,578,937.12 1,854,068,743.65
Shareholders’ equity：
Share capital 1,022,550,000.00 1,022,550,000.00
Other equity instruments 32,103,507.97
Thereof: Preference shares
Perpetual debts
Capital reserve 226,083,353.77 168,298,491.29
Less: treasury shares
Other comprehensive income 22,852,245.26 15,452,263.61
Specific reserve 29,243,725.77 26,141,271.69
Surplus reserve 300,522,057.11 255,493,157.09
General risk reserve
Retained earnings 1,536,230,123.06 1,391,857,922.71
Total equity attributable to shareholders of the parent company 3,169,585,012.94 2,879,793,106.39
Minority shareholder equity 177,109,905.85 168,083,569.78
Total shareholders’ equity 3,346,694,918.79 3,047,876,676.17
Total liabilities and shareholders’ equity 6,220,273,855.91 4,901,945,419.82
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2) Balance Sheet of Parent Company
Unit: RMB
Item Dec 31, 2022 Jan 1, 2022
Current assets:
Cash at bank and on hand 558,638,558.10 231,349,019.86
Financial assets held for trading 1,067,854,254.08 781,841,534.53
Derivative financial assets
Bills receivable 247,221,244.29 213,879,097.43
Accounts receivable 799,216,696.68 623,091,820.39
53
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Financing receivables 89,925,115.89 62,227,683.22
Prepayments 110,843,454.45 103,997,118.75
Other receivables 22,537,149.02 12,089,893.45
Thereof: Interest receivable
Dividend receivable 2,601,281.28
Inventories 1,594,443,554.27 1,365,863,929.52
Contract assets 123,540,319.09 61,464,107.44
Assets held for sale
Non-current assets due within one year
Other current assets 14,227,088.07 84,086,902.47
Total current assets 4,628,447,433.94 3,539,891,107.06
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 740,518,264.70 510,619,193.87
Other equity instruments investments 27,117,364.10 24,483,027.56
Other non-current financial assets
Investment properties
Fixed assets 152,430,504.15 167,587,260.49
Construction in progress 21,429,854.11
Productive biological assets
Oil and gas assets
Right-of-use assets 441,271.74 653,082.18
Intangible assets 37,605,591.40 36,724,254.11
Development costs
Goodwill
Long-term deferred expenses 84,955.75
Deferred tax assets 24,156,362.90 25,151,630.69
Other non-current assets 11,463,555.05 15,847,197.42
Total non-current assets 1,015,247,723.90 781,065,646.32
Total assets 5,643,695,157.84 4,320,956,753.38
Current liabilities:
Short-term loans
54
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 264,814,384.36 163,506,047.84
Advances from customers
Contract liabilities 1,571,364,637.48 1,076,132,534.39
Employee benefits payable 48,097,569.96 45,727,674.42
Taxes payable 37,236,011.40 45,300,625.00
Other payables 7,650,725.57 5,531,624.08
Thereof: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 802,551.69 201,250.11
Other current liabilities 104,756,129.31 82,008,840.39
Total current liabilities 2,034,722,009.77 1,418,408,596.23
Non-current liabilities:
Long-term loans
Bonds payable 415,824,511.11
Thereof: Preference shares
Perpetual debts
Lease liabilities 209,114.67
Long-term payable 6,000,000.00
Long-term employee benefits payable
Provisions 4,667,743.14 3,996,091.20
Deferred income 4,781,549.13 8,369,857.05
Deferred tax liabilities 7,779,159.10 7,297,242.43
Other non-current liabilities 117,066,270.00 107,151,867.52
Total non-current liabilities 550,119,232.48 133,024,172.87
Total liabilities 2,584,841,242.25 1,551,432,769.10
Shareholders’ equity：
Share capital 1,022,550,000.00 1,022,550,000.00
Other equity instruments 32,103,507.97
Thereof: Preference shares
Perpetual debts
55
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Capital reserve 225,950,067.05 168,288,785.47
Less: treasury shares
Other comprehensive income 7,976,982.26 5,369,127.17
Specific reserve 24,341,652.67 22,035,866.22
Surplus reserve 300,522,057.11 255,493,157.09
Retained earnings 1,445,409,648.53 1,295,787,048.33
Total shareholders’ equity 3,058,853,915.59 2,769,523,984.28
Total liabilities and shareholders’ equity 5,643,695,157.84 4,320,956,753.38
(3) Consolidated Income Statement
Unit: RMB
Item 2022 2021
1. Total revenue 2,153,746,152.69 2,112,954,813.09
Thereof : Operating revenue 2,153,746,152.69 2,112,954,813.09
2. Total cost 1,692,891,233.52 1,606,585,515.83
Thereof : cost of sales 1,356,712,204.34 1,303,411,602.34
Taxes and surcharges 23,327,068.38 18,517,384.66
Selling and distribution expenses 94,505,120.53 85,543,508.38
General and administrative expenses 112,797,769.70 111,279,233.98
Research and development expenses 118,689,704.65 88,753,584.15
Financial expenses -13,140,634.08 -919,797.68
Thereof : Interest expenses 4,058,577.85 1,497,144.62
Interest income 12,172,849.27 5,851,744.39
Add: Other income 62,253,301.72 71,574,326.06
Investment income ("-" for losses) 6,439,111.38 53,508,336.66
Thereof: Income from investment in associates and joint
4,918,671.51 28,651,229.34
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) 5,644,531.71 -1,589,248.11
Credit impairment losses ("-" for losses) -517,545.77 -5,811,944.82
Impairment losses ("-" for losses) -20,456,984.96 -16,815,163.35
Gains from assets disposal ("-" for losses) -119,453.54 -868,454.28
56
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
3. Operating profit ("-" for losses) 514,097,879.71 606,367,149.42
Add: Non-operating income 10,006.77 81,855.21
Less: Non-operating expenses 2,069,213.85 3,781,822.74
4. Profit before income tax ("-" for losses) 512,038,672.63 602,667,181.89
Less: Income tax expenses 64,289,370.15 82,775,578.07
5. Net profit for the year ("-" for net losses) 447,749,302.48 519,891,603.82
(1) Classification according to operation continuity
Net profit from continuing operations(loss is stated with “-”) 447,749,302.48 519,891,603.82
Net profit from discontinued operations(loss is stated with “-”)
(2) Classified by ownership of the equity
Attributable to shareholders of the parent company 445,038,600.37 490,327,299.72
Minority interests 2,710,702.11 29,564,304.10
6. Other comprehensive income, net of tax 570,551.72 2,284,828.34
Other comprehensive income attributable to shareholders of the
1,568,830.37 8,338,434.77
Parent Company, net of tax
(1) Other comprehensive income items which will not be
2,239,186.05 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
2,239,186.05 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
-670,355.68 -7,292,138.66
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
368,669.04
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
-1,039,024.72 -7,292,138.66
foreign currency financial statements
57
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
7)Others
Other comprehensive income attributable to minority shareholders,
-998,278.65 -6,053,606.43
net of tax
7. Total comprehensive income 448,319,854.20 522,176,432.16
Attributable to shareholders of the parent company 446,607,430.74 498,665,734.49
Minority interests 1,712,423.46 23,510,697.67
8. Earnings per share
(1) Basic earnings per share 0.4352 0.4795
(2) Diluted earnings per share 0.4352 0.4795
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(4)Income Statement of Parent Company
Unit: RMB
Item 2022 2021
1. Total revenue 1,932,734,317.76 1,776,631,649.81
Less: cost of sales 1,234,004,746.10 1,137,531,815.19
Taxes and surcharges 19,866,883.67 16,606,349.16
Selling and distribution expenses 83,597,686.21 70,315,541.65
General and administrative expenses 66,493,794.43 63,840,051.35
Research and development expenses 93,261,725.64 70,022,646.60
Financial expenses -6,772,167.40 -7,790,596.13
Thereof : Interest expenses 4,425,200.49 1,617.96
Interest income 12,013,931.84 5,812,277.72
Add: Other income 59,251,335.18 67,049,026.22
Investment income ("-" for losses) 19,273,052.93 60,220,154.32
Thereof: Income from investment in associates and joint
4,918,671.51 28,651,229.34
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) 5,290,952.07 -1,988,979.88
Credit impairment losses ("-" for losses) 1,116,645.57 -7,154,301.92
Impairment losses ("-" for losses) -10,042,924.16 -13,840,196.01
Gains from assets disposal ("-" for losses) -154,906.34 -868,454.28
2. Operating profit ("-" for losses) 517,015,804.36 529,523,090.44
58
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Add: Non-operating income 2.87 77,029.66
Less: Non-operating expenses 1,943,035.51 2,372,582.71
3. Profit before income tax ("-" for losses) 515,072,771.72 527,227,537.39
Less: Income tax expenses 64,783,771.50 67,640,500.50
4. Net profit for the year ("-" for net losses) 450,289,000.22 459,587,036.89
Net profit from continuing operations (loss is stated with “-”) 450,289,000.22 459,587,036.89
Net profit from discontinued operations (loss is stated with “-”)
5. Other comprehensive income, net of tax 2,607,855.09 5,369,127.17
(1) Other comprehensive income items which will not be
2,239,186.05 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
2,239,186.05 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
368,669.04 -991,446.26
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
368,669.04
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 452,896,855.31 464,956,164.06
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
59
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
(5) Consolidated Cash Flow Statement
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2,440,433,896.16 2,109,481,032.52
Refund of taxes and surcharges 47,645,190.27 63,915,107.96
Other cash receipts relating to operating activities 31,399,157.08 22,553,137.86
Sub-total of cash inflows from operating activities 2,519,478,243.51 2,195,949,278.34
Cash paid for goods and services 1,256,546,781.63 1,091,852,260.00
Cash paid to employees and paid on behalf of employees 442,729,532.89 375,628,793.53
Payments of taxes and surcharges 245,464,627.58 207,710,364.96
Other cash payments relating to operating activities 123,205,335.21 120,984,729.10
Sub-total of cash outflows from operating activities 2,067,946,277.31 1,796,176,147.59
Net cash flows from operating activities 451,531,966.20 399,773,130.75
2. Cash flows from investing activities
Cash received from withdrawing investments 2,365,387,000.00 3,243,591,953.39
Cash received from investment income 31,586,059.33 27,384,251.30
Net cash received from disposal of fixed assets, intangible
132,632.26 1,212,045.71
assets and other long term assets
Net cash received from disposal of subsidiaries and other
78,281,750.36
operating units
Other cash receipts relating to investing activities 1,052,393.50
Sub-total of cash inflows from investing activities 2,476,439,835.45 3,272,188,250.40
Cash paid to acquire fixed assets, intangible assets and other
54,027,752.50 25,044,760.67
long-term assets
Cash paid to acquire investments 2,697,060,000.00 3,235,040,000.00
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
Sub-total of cash outflows from investing activities 2,751,087,752.50 3,262,951,780.24
Net cash flows from investing activities -274,647,917.05 9,236,470.16
3. Cash flows from financing activities
Cash received from capital contributions 1,130,000.00 300,000.00
Thereof: Cash received by subsidiaries from minority
1,130,000.00 300,000.00
shareholders’ capital contributions
60
HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Cash received from borrowings 40,760,000.00 25,130,000.00
Cash received from issuing bonds 450,000,000.00
Other cash receipts from financing activities 1,200,000.00
Sub-total of cash inflows from financing activities 493,090,000.00 25,430,000.00
Cash repayments of borrowings 44,060,000.00 39,209,395.45
Distribution of dividends or profits and payments for interest
256,689,520.45 213,388,945.70
expenses
Thereof: Cash payments for dividends or profit to minority
7,350,000.00
shareholders by subsidiaries
Other cash payments relating to financing activities 8,863,306.36 640,538.09
Sub-total of cash outflows from financing activities 309,612,826.81 253,238,879.24
Net cash flows from financing activities 183,477,173.19 -227,808,879.24
4. Effect of foreign exchange rate changes on cash and cash
5,901,445.25 -4,334,754.69
equivalents
5. Net increase in cash and cash equivalents 366,262,667.59 176,865,966.98
Add: Cash and cash equivalents at the beginning of period 290,330,558.56 113,464,591.58
6. Cash and cash equivalents at the end of period 656,593,226.15 290,330,558.56
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(6)Cash Flow Statement of Parent Company
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2,148,043,331.85 1,843,592,265.40
Refund of taxes and surcharges 43,162,727.79 60,099,520.80
Other cash receipts relating to operating activities 26,555,939.19 20,301,421.67
Sub-total of cash inflows from operating activities 2,217,761,998.83 1,923,993,207.87
Cash paid for goods and services 1,184,007,023.31 912,443,357.66
Cash paid to employees and paid on behalf of employees 209,365,212.27 316,455,375.21
Payments of taxes and surcharges 216,922,898.68 180,804,746.80
Other cash payments relating to operating activities 76,617,869.20 92,774,844.35
Sub-total of cash outflows from operating activities 1,686,913,003.46 1,502,478,324.02
Net cash flows from operating activities 530,848,995.37 421,514,883.85
2. Cash flows from investing activities
Cash received from withdrawing investments 2,067,057,000.00 3,013,721,953.39
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HARBIN BOSHI AUTOMATION CO., LTD. Annual Report 2022(Abstract）
Cash received from investment income 31,324,837.21 34,306,890.88
Net cash received from disposal of fixed assets, intangible
318,432.26 1,212,045.71
assets and other long term assets
Net cash received from disposal of subsidiaries and other
operating units
Other cash receipts relating to investing activities 1,032,393.50 8,000,000.00
Sub-total of cash inflows from investing activities 2,099,732,662.97 3,057,240,889.98
Cash paid to acquire fixed assets, intangible assets and other
29,466,374.75 21,349,226.34
long-term assets
Cash paid to acquire investments 2,463,800,000.00 3,025,800,000.00
Net cash paid to acquire subsidiaries and other operating units 1,200,000.00
Other cash payments relating to investing activities 2,800,000.00 15,000,000.00
Sub-total of cash outflows from investing activities 2,496,066,374.75 3,063,349,226.34
Net cash flows from investing activities -396,333,711.78 -6,108,336.36
3. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings 5,000,000.00
Cash received from issuing bonds 450,000,000.00
Other cash receipts from financing activities
Sub-total of cash inflows from financing activities 455,000,000.00
Cash repayments of borrowings
Distribution of dividends or profits and payments for interest
255,637,500.00 204,510,000.00
expenses
Other cash payments relating to financing activities 6,600,006.95 219,047.62
Sub-total of cash outflows from financing activities 262,237,506.95 204,729,047.62
Net cash flows from financing activities 192,762,493.05 -204,729,047.62
4. Effect of foreign exchange rate changes on cash and cash
11,761.60 -4,254.66
equivalents
5. Net increase in cash and cash equivalents 327,289,538.24 210,673,245.21
Add: Cash and cash equivalents at the beginning of period 231,342,219.86 20,668,974.65
6. Cash and cash equivalents at the end of period 558,631,758.10 231,342,219.86
Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.
April 28th, 2023
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