HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023
（Abstract）
Ⅰ. Important Notes
This Abstract is extracted from Annual Report 2023. In order to have a full understanding of the 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 2023 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 ninth meeting of the
fifth Board of Directors is as follows: based on 1021986802 shares which was the total share capital of the
st
Shenzhen Stock Exchange closed on December 31 2023 deducting shares in buy-back account 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.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 payment are equally entitled to participate in the current distribution of profits.Indicate by check mark if preplan for preferred stocks profit distribution to shareholders for the report period
which has been reviewed and approved by the Board of Directors.□Applicable √Not applicable
1HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
II. Basic Situation of the Company
1. Company Profile
Stock Abbreviation Boshi Stock Code 002698
Stock Exchange for Stock
Shenzhen Stock Exchange
Listing
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’sregional headquarters and provide convenience for value investment the Company has set up a “Securitiesand Investment Affairs Office” at No. 1102 Building 2 Huijin Building No. 55 Shangxiang Road 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
Retroactive adjustment or restatement reasons
In accordance with the Accounting Standards Interpretation for Business Enterprises No. 16 (Finance and
Accounting (2022) No. 31) issued by the Ministry of Finance in November 2022 the Company adjusts the
taxable temporary differences and deductible temporary differences arising from the lease liabilities and use
rights assets recognized by the leasing business.
2HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Unit: RMB
Increase/de
crease of
20222021
2023 over
20232022
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Operating Revenue 2565408783.42 2153746152.69 2153746152.69 19.11% 2112954813.09 2112954813.09
Net profit attributable
to parent company’s 533591213.86 445038600.37 445041007.98 19.90% 490327299.72 490327299.72
shareholders
Net profit after
deducting
non-recurring profit
485726824.70414143401.62414145809.2317.28%459328151.59459328151.59
or loss attributable to
shareholders of the
parent company
Net cash flow from
138942658.01451531966.20451531966.20-69.23%399773130.75399773130.75
operating activities
Basic earnings per
0.52180.43520.435219.90%0.47950.4795
share (RMB/share)
Diluted earnings per
0.51900.43520.435219.26%0.47950.4795
share(RMB/share)
Weighted average
16.22%14.70%14.70%1.52%18.02%18.02%
return on equity
Increase/de
crease of
As of Dec.31 2022 As of Dec.31 2021
As of Dec.31 2023 over
20232022
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Total assets 6648692787.99 6220273855.91 6220274009.69 6.89% 4901945419.82 4901945419.82
Total equity
attributable to
3450338131.693169585012.943169582981.148.86%2879793106.392879793106.39
shareholders of the
parent company
3HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(2) Key accounting data by quarter
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 729710396.08 659640271.76 592913713.25 583144402.33
Net profit attributable to parent
210214585.50125251218.7799131174.7298994234.87
company’s shareholders
Net profit after deducting
non-recurring profit or loss
198069179.12111794584.5391961860.3983901200.66
attributable to shareholders of the
parent company
Net cash flows from operating
-53800397.01-59476376.98107849374.04144370057.96
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
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 common stocks
preferred stock with stock with resumed voting
common stocks at the 23932 at previous 33596 0 0
resumed voting rights at previous
end of the reporting month-end of
right at the end of the month-end of this report’s
period this report’s
reporting period disclosure
disclosure
Top 10 shareholders(Excluding shares lent in refinancing)
Quantity of Pledged marked or frozen
Quantity of
Name Nature Ownership restricted stocks
stocks
stocks held Status Quantity
Unicom Kaixing Equity Investment
Management (Zhuhai Hengqin)
Others 14.20% 145176676 Not applicable
Limited - Lianchuang Weilai
(Wuhan) Intelligent Manufacturing
4HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Industrial Investment Partnership
(Limited Partnership)
Deng Xijun Domestic natural person 9.41% 96181562 72136172 Not applicable
Zhang Yuchun Domestic natural person 8.09% 82696357 62022268 Not applicable
Wang Chungang Domestic natural person 5.61% 57394047 43045535 Not applicable
Cai Zhihong Domestic natural person 4.96% 50677029 Not applicable
Cai Hegao Domestic natural person 4.89% 50000000 Not applicable
Harbin Institute of Technology Domestic state-owned
3.00% 30678500 Not applicable
Asset Management Co. Ltd corporate
Cheng Fang Domestic natural person 1.59% 16261358 Not applicable
Tan Jianxun Domestic natural person 1.39% 14174933 Not applicable
China Life Insurance Company
Limited - Traditional - General
Others 1.19% 12118870 Not applicable
Insurance Products -005L-CT001
Shanghai
Top 10 shareholders involved in refinancing shares lending
□Applicable √Not applicable
Changes in shares that the top 10 shareholders compared with the prior period
√ Applicable □Not applicable
Unit: shares
Changes in shares that the top 10 shareholders
Shares in the common account and credit
Shares lent in refinancing and not yet
Add/exit in account plus shares lent in refinancing and returned at the period-end
Full name of shareholder this reporting not yet returned at the period-end
period As % of total As % of total share
Total shares Total shares
share capital capital
China Life Insurance Company
Limited - Traditional - General
Add 0 0.00% 0 0.00%
Insurance Products
-005L-CT001 Shanghai
Bank of China Co. Ltd.-China
Merchant Ruiwen Hybrid Exit 0 0.00% 0 0.00%
Securities Investment Fund
(2) The total number of preferred shareholders and the top 10 preferred shareholders’ shareholdings
of the Company
□Applicable √Not applicable
5HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
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’0000)
1st year 0.30%
nd
Convertible 2 year 0.50%
Boshi
rd
Corporate Bonds of 3 year 1.00%
Convertible 127072 Sep. 22nd 2022 Sep. 21st 2028 44989.57
Harbin Boshi 4th year 1.50%
Bonds
Automation Co. Ltd. 5th year 1.80%
6th year 2.00%
* Interest of the first year has been paid at par on Sep. 22nd 2023. The interest is RMB
Bond redemption and interest 3.00 (inclusive of tax) for every 10 “Boshi Convertible Bonds（” Face value of RMB 1000）.payment during the reporting * Claims registration date: Sep. 21st 2023
period * Ex-dividend date: Sep. 22nd 2023
* Interest payment date: Sep. 22nd 2023
(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
Domestic state-owned
1 China Galaxy Securities Co. Ltd 423145 42314500.00 9.41%
corporate
China CITIC Bank Co. LTd.-Sino
2 Others 363000 36300000.00 8.07%
Credit Bond Securities Investment Fund
3 China Merchants Securities Asset Others 222178 22217800.00 4.94%
6HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Management-Harmony Health
Insurance Co. Ltd.-Universal
products-China Merchants Asset
Management Anwin 202203 Single
Asset Management Plan
4 Cai Zhihong Domestic natural person 198009 19800900.00 4.40%
China Construction Bank Co.Ltd.-Huaxia Convertible Bond
5 Others 185639 18563900.00 4.13%
Enhanced Bond Securities Investment
Fund
Zhongtai Securities Asset Management
- Gansu Bank “Huifu” Series of
6 Financial Products Plan - Qilu Asset Others 165453 16545300.00 3.68%
Management 0006 Directional Asset
Management Contract
China Merchants Bank Co.
7 Ltd.-Huabao Convertible Bond Bond Others 137320 13732000.00 3.05%
Securities Investment Fund
Industrial and Commercial Bank of
8 China -Ping An Select Value-added Others 124160 12416000.00 2.76%
NO.1 Hybrid Pension Product
Taiping Pension Eifeng fixed income
9 pension products - Industrial and Others 101641 10164100.00 2.26%
Commercial Bank of China Limited
Yi’an (Shanghai) Investment Co.
10 Ltd.-Aijian - Yi’an Convertible Bond Others 89730 8973000.00 1.99%
No. 2 Private Equity Investment Fund
(3) Latest rating and rating change
th
On June 26 2023 China Lianhe Credit Rating Co. Ltd. issued the 2023 Credit Rating Report of Harbin
Boshi Automation Co. Ltd.’s Public Issuance of Convertible Corporate Bonds. The long-term credit rating
of the Company maintained “AA” the credit rating of this convertible corporate bond was “AA” and the
bond rating outlook was “stable”. The result of this tracking rating did not changed from the previous rating.The credit rating report mentioned above is available at cninfo.com.cn.
7HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(4) Selected financial information of the Company for the past two years
Unit: RMB’0000
Increase/Decrease
Item 2023 2022 Explanation
over last year
Liability /asset ratio 45.89% 46.20% -0.31%
Net profit after deducting
non-recurring profit or loss
48572.6841414.5817.28%
attributable to shareholders of the
parent company
EBITDA/liability ratio 149.15% 122.32% 26.83%
Mainly due to interest expenses caused
Interest cover (times) 43.40 104.76 -58.57% by convertible corporate bonds
increased year-on-year.Ⅲ.Important Issues
st
The Company held the sixth meeting of the fifth Board of Directors on November 1 2023 reviewed and
st
passed the Proposal on the Plan to Buyback Part of the Company’s Shares. As of December 31 2023 the
Company has done 569800 shares buy-back of the Company in total accounting for 0.06% of the total
Company’s share capital with the highest transaction price of RMB16.00 per share and the lowest price of
RMB14.91 per share with a total transaction amount of RMB 8864709.00 (excluding transaction fees). As
th
of March 15 2024 the Company confirmed that this share buy-back plan has been completed and the
Company has done 7203019 shares buy-back of the Company in total accounting for 0.70% of the total
share capital with the highest transaction price of RMB 17.88 per share and the lowest transaction price of
RMB 10.58 per share. The total transaction amount is RMB 100125282.85 (excluding transaction fees).
8HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(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
encouraged by the State. From the perspective of revenue composition the revenue of two core growing
businesses intelligent manufacturing equipment and industrial services account for 96% of total as well as
supplemented beneficially by environmental protection process equipment.Intelligent Manufacturing Equipment：
“Manufacturing is the main body of the national economy the foundation of building the country theinstrument of rejuvenating the country and the foundation of strengthening the country.” Made in China
2025 points out that “accelerating the integrated development of the new generation of informationtechnology and manufacturing technology and taking intelligent manufacturing are the main direction of the
thin-depth integration of informatization and industrialization.” In recent years the state issued the 14
th
Five-Year Plan for Intelligent Manufacturing Development the 14 Five-Year Plan for the Development of
th
Robot Industry the 14 Five-Year Plan for In-depth Integration of IT Application and Industrialization the
th
14 Five-Year Plan for the Development of Digital Economy “Robot Plus” Application and Implementation
Plan Implementation Opinions on Promoting Innovative Development of Future Industries which
th
established the high-end equipment manufacturing industry in the “14 Five-Year Plan” and 2035 long term
goals promoted the layout of future industrial innovation and development provided clear guidelines and
directions for accelerating the construction of a manufacturing power a digital industry and a digital China
and promoted the development of China’s intelligent manufacturing and digital economy.From the industry practice large-scale Chinese manufacturing enterprises generally use automated product
lines however a low percentage of them are digitized among them not much data is shared among factories
9HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
and fewer intelligent technologies are used. The overall level of intelligent manufacturing in China is still far
away from the world’s advanced level. It is foreseeable that 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.The Company has been engaging in the field of intelligent equipment for a long time with independent
intellectual property rights of intelligent manufacturing equipment products to help China’s manufacturing
promote quality and efficiency. Replacing imported equipment or industry-first applications to promote the
technological progress of related industries with scientific and technological innovation. In recent years the
State actively advocates the implementation of industrial digitalization strategies. The Company has
accelerated the accumulation application of digital and intelligent technologies mastered by the Company.Now it has the designing and implementation capability of digital workshops，intelligent factories and overallsolutions in multiple product application fields.The Company’s intelligent manufacturing equipment are widely applied in petrochemical sub-merged 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 promote the application and
implementation of the overall smart factory solution. 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.The Company implements differentiation competitive strategy (technology leadership). With the
accumulation and industrial application practice in the direction of automation digital intelligent technology
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 desirable returns to shareholders.Industrial Service：
th
On March 16 2021 the National Development and Reform Commission the Ministry of Science and
Technology the Ministry of Industry and Information Technology and the like totaling thirteen departments
jointly issued the Opinions on Accelerating the High-quality Development of the Manufacturing ServiceIndustry pointing out “manufacturing service industry is an important support for improving thecompetitiveness 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 therequirements 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 insupporting and leading the high-quality development of the manufacturing industry” to “realize the couplingand integration of the manufacturing industry and the manufacturing service industry”.The production and operation management service of the Company’s intelligent manufacturing equipment
10HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
field includes integrated industrial services for process plant and equipment daily operation repair
maintenance finished products outbound & inbound transfer truck loading and so on. The Company’s
professional services contribute customers to reduce costs and increase efficiency concentrate resources on
core competitiveness and achieve high-quality development. The Company relays on the leading technology
advantage and continues to vigorously promote the strategy of product and service integration over the years.The professional economic high-quality and efficient service has been recognized and praised by
customers.Based on the recognition and encouragement of 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 NationalDevelopment and Reform Commission. In January 2023 the Company was selected into the “The FourthBatch of Service-oriented Manufacturing Demonstration List” of the General Office of the Ministry of
Industry and Information Technology. 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
actively develop the deep service needs of customers after the Company undertakes and implements new
production and operation industrial service projects the service scale expansion is expected to accelerate.During 2023 The Company’s overall industrial services revenue exceeded RMB 700 million for the first
time reaching RMB 717 million increase 12.21% year-on-year. The revenue of industrial services an
important source that constitutes the Company’s revenue and profit has grown year after year this will
enhance the whole Company’s ability to resist risks. While serving its own product customers the
Company’s industrial service network service capabilities with the ability to undertake industrial service
market demand outside of the Boshi equipment is expected to form a “industrial services plus” to empower
the new direction of the industry of intelligent manufacturing equipment.Environmental Protection Process and Equipment:
th
“The 14 Five-Year Plan” takes “achieving new progress in ecological civilization construction” as one of
the main goals. The Company will continue to improve environmental quality and promote a comprehensive
green transformation of economic and social development. 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 economic
and environmental results. During this reporting period the revenue of environmental protection process and
equipment accounted for 4% of total which played a beneficial complementary role in the overall
performance of the Company.
(2) Industry policy impact
In recent years the state has issued intensive industrial policies and industry plans related to intelligent
11HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
manufacturing robot and digital economy industry stabilized growth and other related industry planning and
industry promotion policies to lead the development of the industry. The field of high-end intelligent
manufacturing equipment is facing major development opportunities. At the same time the technology
accumulation and technological innovation of industry enterprises are constantly improved with benefits
from the promoting of national digital infrastructure construction the project application and implementation
ability is increasing. From the Company’s long-term industrial practice in the field of intelligent
manufacturing equipment industry intelligent equipment digitalization and intelligence are in great demand
for China’s manufacturing enterprises and the field of intelligent manufacturing equipment will continue to
flourish.In January 2023 seventeen departments including the Ministry of Industry and Information Technology
jointly issued the “Robot Plus” Application Action and Implementation Plan proposed the density 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 August 2023 seven departments including the Ministry of Industry and Information Technology jointly
issued the Petrochemical and Chemical Industry Growth Stabilization Work Program pointed out that: the
petrochemical and chemical industry is the national economy basic pillar-type industries the total economic
volume of the industry the industry correlation is high it is related to the stable growth of industry the
steady operation of the economy. The program to focus on promoting investment expanding consumption
expanding foreign trade stabilizing production strong enterprises excellent environment to achieve
effective improvement in quality and reasonable growth in quantity to promote the petrochemical and
chemical industry stable operation and consolidate the foundation of high-quality development of the
industry as the guiding ideology; In order to expand effective investment promote the development of
high-end green and intelligent development and other work initiatives to promote the construction of major
projects and to increase the intensity of technological transformation. It will issue and implement guidelines
for the construction of intelligent manufacturing standard systems in the petrochemical and chemical
industries formulate standards for the construction of intelligent factories select typical application
scenarios construct intelligent manufacturing demonstration factories cultivate characteristic industrial
Internet platforms for key industries and promote the intelligent upgrading of the industry.In October 2023 the Ministry of Industry and Information Technology (MIIT) issued the Guiding Opinions
on the Innovative Development of Humanoid Robots pointed out that humanoid robots integrate artificial
intelligence high-end manufacturing new materials and other advanced technologies and are expected to
become a disruptive product following computers smart phones and new energy vehicles which will
profoundly change the way of production and life of human beings and reshape the pattern of global
industrial development. By 2025 a humanoid robot innovation system will be initially established and
breakthroughs will be made in a number of key technologies such as “brain cerebellum and limb” ensuring
the safe and effective supply of core components. The complete robot products will reach the international
12HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
advanced level and realize mass production with demonstration applications in special manufacturing and
people’s livelihood service scenarios as well as exploring the formation of effective governance mechanisms
and means. We will cultivate 2-3 ecological enterprises with global influence and a batch of specialized
special and new small and medium-sized enterprises create 2-3 industrial development clusters and
cultivate and develop a batch of new businesses modes and modes of operation. By 2027 the technological
innovation capability of humanoid robots will be significantly improved a safe and reliable industrial chain
supply chain system will be formed an industrial ecosystem with international competitiveness will be built
and the comprehensive strength will reach the world advanced level. The industry will accelerate the
realization of large-scale development the application scenarios will become richer and the related products
will be deeply integrated into the real economy becoming an important new engine of economic growth.In January 2024 seven departments including the Ministry of Industry and Information Technology jointly
issued the Implementation Opinions on Promoting Future Industrial Innovation and Development. Opinions
pointed out that: future industries are driven by cutting-edge technologies currently in the incubation and
development stage or the early stage of industrialization and are forward-looking emerging industries with
significant strategic leading disruptive and uncertainty. Vigorously developing future industries is a
strategic choice to lead scientific and technological progress drive industrial upgrading and cultivate new
productivity. Opinions are clear: by 2025 future industry technology innovation industry cultivation
security governance and other comprehensive development some areas to reach the international advanced
level the scale of the industry steadily increased. We will build a number of future industry incubators and
pilot zones break through one hundred cutting-edge key core technologies form one hundred iconic
products build one hundred leading enterprises develop one hundred typical application scenarios
formulate one hundred key standards cultivate one hundred professional service organizations and initially
form a future industry development model in line with China’s actual situation. By 2027 the comprehensive
strength of future industries will be significantly improved and global leadership will be realized in some
fields. Key core technologies have made major breakthroughs a number of new technologies new products
new business forms new models have been generally applied key industries to achieve large-scale
development to cultivate a number of ecologically dominant leading enterprises to build a synergistic
linkage between future industries and advantaged industries emerging industries traditional industries the
development pattern the formation of a long-term mechanism for sustainable development and to become
the world’s important source of the future of the industry. Opinions pointed out to grasp the global scientific
and technological innovation and industrial development trends focusing on promoting the future of
manufacturing the future of information the future of materials the future of energy the future of space and
the future of the health of the six major directions of industrial development.In January 2024 nine departments including the Ministry of Industry and Information Technology jointly
issued the Work Plan for the Digital Transformation of the Raw Material Industry (2024-2026) and the
Implementation Guide for the Digital Transformation of the Petrochemical and Chemical Industry. It clearly
interprets that petrochemical and chemical industry is an important pillar industry of the national economy
and is a typical process manufacturing with a wide variety of products long process flow mixed materials
and physical properties harsh working conditions and mostly involves key supervision of dangerous
chemical processes key supervision of dangerous chemicals and major hazard sources accelerating the
penetration of new technologies such as artificial intelligence big data and mobile Internet. Under the new
situation of increasing resource and environmental constraints and more urgent green and safe development
tasks digital transformation is an important means to build a solid green safety bottom line and it is also an
13HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
inevitable choice to improve total factor productivity and create new competitive advantages. By 2026 the
level of digital networking in the petrochemical and chemical industry will be significantly improved the
integration of data and reality will continue to deepen and the intelligent manufacturing capability of
enterprises will be significantly enhanced with more than 20 new benchmark factories for digital
transformation about 10 benchmark 5G factories more than 70 excellent scenarios for intelligent
manufacturing and 50 smart chemical parks. The solution supply capacity has reached a new level and 3 to
5 comprehensive solution providers for digital transformation for the petrochemical and chemical industry
have been cultivated.In February 2024 the fourth meeting of the Financial and Economic Commission of the CPC Central
Committee proposed that accelerating product replacement is an important measure to promote high-quality
development and it is necessary to encourage and guide a new round of large-scale equipment renewal and
th
consumer goods for new. On March 7 2024 The State Council issued the Action Plan for Promoting
Large-scale Equipment Renewal and Replacing Old Consumer Goods with New Ones which pointed out
that promoting large-scale equipment renewal and replacing old consumer goods with new ones is an
important measure to accelerate the construction of a new development pattern and promote high-quality
development which will effectively promote investment and consumption and benefit both the current and
long-term. The plan proposes to accelerate the elimination of backward products and equipment improve the
level of safety and reliability and promote the high-end intelligent and green development of the industry
as well as upgrade and upgrade equipment in key industries. To promote a new type of industrialization with
energy conservation carbon reduction ultra-low emissions safe production digital transformation and
intelligent upgrading as important aspects we will focus on key industries such as steel nonferrous metals
petrochemicals chemicals building materials electric power machinery aviation shipping textile and
electronics and vigorously promote the upgrading and technological upgrading of production equipment
energy-using equipment and transmission transmission and distribution equipment.The above national industry and industrial support policies as well as stabilizing growth boosting demand
thand promoting investment and consumption policies and measures combined with the national “14thFive-Year Plan” for the development of the digital economy “14 Five-Year Plan” for the development of
th th
intelligent manufacturing “14 Five-Year Plan” for the development of the robot industry “14 Five-YearPlan” for the development of a deeper fusion of informationization and industrialization etc. which clearly
defines the direction of development and boosts demand will be conducive to promoting and facilitating the
Company to achieve sustained better and faster development in the mid- and long-terms.
14HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
2. Company Main Businesses during the Reporting Period
(1) Main products services application level and business model 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
powder granular materials or irregular materials of It is intelligent equipment and intelligent plant overall
petrochemical new energy grain animal feeds solution applied in production process of synthetic
building materials medicine food ports etc. (such as rubber and natural rubber and in the fields of product
crushing screening bagging boxing and transportation refining process dewatering and drying process
of new energy field polysilicon reduced silicon rods (rubber washing cleaning and impurity removal
etc.) providing efficient automatic weighing packaging dewatering crushing and drying etc.) and finished
and palletizing intelligent manufacturing and product packaging process (weighing baling
production equipment and overall solutions of smart detecting conveying packaging and palletizing etc.)
factories.In the field of post-processing high-end equipment for
p owder and granular materials in China it has obvious
advantages and a stable competitive position. In the field Complete product line covering natural rubber and
of post-processing high-end equipment for the new synthetic rubber;
e nergy field irregular polysilicon materials the original It is the only supplier which can provide complete
first set of applications has promoted the upgrade of large-scale systems worldwide.intelligent manufacturing in the industry.Robot Plus Intelligent Logistics Warehousing Systems
Connecting solid material post-processing intelligent
manufacturing equipment with rubber post-processing
(High temperature) Operation robot for submerged arc
intelligent manufacturing equipment to realize
furnace and serialized intelligent products complete
intelligent identification outbound and inbound
system solutions are applied for high-risk working
warehousing management logistics transshipment
environment as well as other special operation robots
fully automatic vehicle loading etc. which widely used
and complete system solutions which can replace
in many industries of national economy to help
high-risk harsh working conditions and heavy manual customers to build smart factory overall solutions.labor.( High temperature) Operation robot for sub-merged
arc furnace and its surrounding systems are in leading
Fully automatic loading machine has formed the first
position worldwide in the field of calcium carbide; It is
c arrying out innovative implementation of the mover advantage of the scale of application the
intelligent workshop project for the calcium carbide arc market responded positively the future demand in
furnace committed to promoting the production of many fields and industries has great potential
f ewer people unmanned safe efficient ande nvironmental” and bringing the traditional industrial
technology revolution with industry subversive
t echnology.
15HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(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 other than the Company’s own in the future and then form a new industrial direction
of “industrial service plus” enabling intelligent manufacturing equipment.Adhering to the Company’s technological leadership in the field of intelligent equipment leading service
capabilities and scale in the field
(2) Business mode
The business model of large-scale intelligent manufacturing equipment is summarized from sales production
organization product delivery and acceptance revenue recognition and other links as shown in the
following figure:
16HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
The content characteristics of the operation and maintenance aftermarket and complementary industrial
services business models are summarized in the figure below:
Industrial Services——Operation and After-sales Type Industrial Services
B y 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;
F or 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;
T he 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
r evenue 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
17the operating revenue.HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
The following environmental protection process equipment business is a useful complement to the
Company’s intelligent manufacturing equipment and industrial services two of the Company’s core growth
businesses.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.
18HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(3) Performance returns and key performance driving factors
The following charts set out the trends in the operating results of the Company’s major businesses since its
IPO in 2012.Unit: RMB 0.1billion
Legend：Schematic diagram of the Company’s revenue and composition trends
Unit: RMB 0.1billion
Legend：Schematic diagram of the Company’s intelligent manufacturing equipment revenue trend
19HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Unit: RMB 0.1billion
Legend：Schematic of the Company’s industrial services revenue trend
Unit: RMB 0.1billion
Legend：Trends in the Company’s net profit attributable to shareholders of the parent company cash dividends and cash dividend ratio
(Note: Cash dividend ratio= cash dividends for the period/ net profit attributable to shareholders of the parent
company for the period. Cumulative dividends from 2012 to 2023 amounted to RMB 1537 million in 2023
the profit distribution plan adopted by the board of Directors has not yet been implemented; The estimated
data for 2023 do not take the impact of corporate share buybacks into account )
Since 2017 the Company performance has grown well and rapidly and in 2023 the Company’s revenue
exceeded RMB 2.5 billion for the first time with net profit attributable to shareholders of the parent
company of RMB 534 million both of which hit the best level in history. The operating revenue of
intelligent manufacturing equipment business realized a faster growth of 23.68% and the operating revenue
of industrial services continued to grow steadily with the revenue scale exceeding RMB 700 million for the
first time. The performance growth is mainly due 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 Company’s technological innovation and the continuous
R&D application and promotion of new products have achieved the second curve to promote the Company
20HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
to continue its growth period. The Company’s intelligent manufacturing equipment has experienced
continuous technological innovation and the expansion process of continuous application of new technology
and new products which has brought the company strong growth in sales of post-processing intelligent
manufacturing equipment for solid material. 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 including calcium carbide ferrosilicon silicon slugs industrial silicon
etc. Contracts from “robots plus” quickly occupy an important marketing share which strongly promote the
rapid growth of the Company’s overall performance; The industry first application of post-processing
intelligent equipment for solid material in the field of new energy polysilicon raw materials expended the
application of Company product in the field of post process intelligent manufacturing equipment for irregular
solid material which promote revenue growth of the Company’s intelligent manufacturing equipment as an
increment; The growth of industrial services enabling intelligent manufacturing equipment keeps steadily
and become an important source of revenue and profit. Energy saving environmental protection process and
equipment business ornaments the Company’s overall revenue.
(4)Developing new quality productivity and actively laying out future industries
In January 2024 seven departments including the Ministry of Industry and Information Technology jointly
issued the Implementation Opinions on Promoting Future Industrial Innovation and Development. At present
a new round of scientific and technological revolution and industrial transformation is accelerating major
cutting-edge technologies and disruptive technologies continue to emerge and the integration of scientific
and technological innovation and industrial development is deepening and vigorously cultivating future
industries has become a strategic choice to lead scientific and technological progress drive industrial
upgrading open up new tracks and shape new quality productivity. China has a complete industrial system
a large industrial scale rich application scenarios and other comprehensive advantages providing a rich soil
for the development of future industries. The Company will focus on the development of future
manufacturing realize intelligent manufacturing break through key core technologies such as humanoid
robots meet the major strategic needs of the country and the needs of the people’s better life and strengthen
future high-end equipment.The future industry is driven by cutting-edge technologies. In recent years with the rapid development
progress and iteration of 3D machine vision force sensing and haptics perception human-machine
interaction technology composite materials AI decision-making and other intelligent technologies as well as
the industrial base industry chain of humanoid robot parts and key components the development of
humanoid robots has entered into the fast lane also has attracted extensive attention from domestic and
foreign academics and enterprises and has begun the commercialization process. It is foreseeable that
humanoid robots will play an increasingly important role in future production service medical care
education and other fields. As a leading enterprise in the field of intelligent manufacturing equipment and
high-temperature special operation robots in the application of products the Company is optimistic about
this strategic development opportunity and takes humanoid robots as one of the important strategic R&D
th
directions of the Company. August 18 2023 the Company and Harbin Institute of Technology (HIT) signed
a Strategic Cooperation Framework Agreement to jointly set up a R&D project on the industrialization of
key humanoid robots and principle prototypes and jointly promote the industrialization of related
technological achievements and products (Please refer to the Company’s announcement No. 2023-042
th
published on August 19 2023 for details). At present the Company is equipped with project team members
21HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
and HIT project team members to form a project team closely cooperate with each other and work efficiently
the R&D projects are under intense and orderly development and testing. The project has built advantages in
robot arm and smart hand high energy density battery high power density motor servo driver whole body
dynamic control algorithm humanoid robot brain intelligent control technology and so on. The project team
will release the technical achievements according to the development progress and the Company will
disclose the major progress in the subsequent announcement or regular report.In the application field of the Company’s intelligent manufacturing equipment products it has realized the
stage and capability of spanning from single machine and automated production line to digital factory
intelligent factory and overall solutions. Facing the national digitalization strategy and future industrial
demand the Company has invested heavily in the direction of intelligent factory. During the reporting period
the two calcium carbide intelligent factories (workshops) of Inner Mongolia Junzheng Chemical Co. Ltd.and Ningxia Yinglit Chemical Co. Ltd. implemented by the Company with a total amount about RMB360
million progressed as planned and are expected to accept and revenue will be recognized in 2024. The
Company will combine machine vision recognition deep learning robot control algorithms expert control
strategies and other cutting-edge technologies with industrial Internet communication technology applied to
the intelligent workshop intelligent factory overall solutions in order to maximize the possibility of
realizing few people unmanned workshop which relying on intelligent production decision-making and
management as well as to help customers to produce safely and efficient the development of the future of
manufacturing subversive changes in the calcium carbide sub-merged arc furnace of the traditional
production process to realize the industrial upgrading of intelligent manufacturing.
3. Core Competitiveness Analysis
As a technology innovation enterprise the Company adheres to a differentiated competitive strategy of
leading technology and relies on a deep understanding of China’s industrial automation field and long-term
practical experience in industrial applications to maintain a competitive position in the field in which it is
engaged over time. The Company’s intelligent manufacturing equipment and industrial service businesses
are effectively synergized and optimally linked and environmental protection process equipment to the
Company’s overall performance constitutes a beneficial supplement. In recent years the business scale is
growing rapidly the profitability has been greatly improved and comprehensive competitiveness has been
steadily enhanced.
(1) Industry status
The Company has a solid competitive advantage in the core growth business areas of intelligent
manufacturing equipment and industrial services and its main product technology and application scale
have been playing a leading role for a long time in the domestic product application field and has won a
number of industry awards.
22HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(2) Leading competitiveness of products and technologies
Technological innovation is the first driving force to lead the development of technology enterprise and
technology-leading is an important core competitiveness of the Company. The Company continuously
improves its technology application level and technology reserve capacity seizes new opportunities and
expands into new fields. Through R&D investment technology accumulation and technological innovation
outstanding technological leadership advantage continues to enhance and be a competitive position in the
industry.From the perspective of intelligent manufacturing equipment product line the Company’s intelligent
equipment has advantageous technical features of accuracy and high operational 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 domestic leading level and international advanced level among them partial of the product
applications are in the worldwide leading position.From the perspective of the overall solution of intelligent manufacturing The Company applies cutting-edge
technologies such as machine vision recognition deep learning and robot control algorithms to innovative
products in multiple categories 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 workshop etc. help customers realize the digital and
intelligent transformation and realize intelligent manufacturing.
(3) Underlying technology accumulation and application platform technology to enhance the
competitiveness.Mastering the underlying technology algorithm and application platform technology can truly realize the
independence and controllability of core technology continuously promote the implementation of the
23HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Company’s technology leading and differentiation strategy and enhance the Company’s core
competitiveness. Taking the accumulation and development and application of the Company’s technology in
the field of robot plus as an example mastering these capabilities can rapidly develop robot products of
different models and different functions according to the needs of the industry. It will also provide strong
support and guarantee for the R&D of humanoid robots in cooperation with HIT and the application of
specific scenarios in the future. The core technology must be mastered to realize industrial digitalization.Legend：Development platform for mobile robot system based on autonomous navigation
Note: This section is schematic diagram some photos and blurred images under the premise of technical
confidentiality are used to enhance investors’ understanding of relevant applications the following is
omitted.Legend：Motion control system
24HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Legend：R&D platform of AI system based on artificial intelligence
Legend：Intelligent inspection and digital vision technology
(4) Performance-driven dual engines of two core growth businesses “intelligent equipment” +
“industrial service”.The Company integrates technology leadership in intelligent equipment and advantages of scale in product
applications with industrial service closely 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.Intelligent equipment and industrial services promote each other interact positively and develop together.During the reporting period the Company’s industrial services revenue exceeded RMB 700 million for the
first time reaching RMB 717 million and continued to maintain steady growth; “intelligent equipment” plus
“industrial services” revenue accounted for 96% of the Company’s overall revenue is the Company’s two
core growth business constituting the double engine driving the Company’s performance.
25HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Legend: The positive interaction between intelligent equipment and industrial service
(5) “Point → Line → Whole” the efficient R&D pathway.
Throughout the Company’s technology product development and industrialization process the 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 Company forms the ability to develop a total
solution (“whole”) for intelligent manufacturing in turn. This process of technological progress from “point→ line → whole” helps the Company to concentrate resources reduce technology development risks
improve the efficiency of R&D investment outputs open the ceiling of growth with new products new fields
new applications new markets and comprehensively enhance the Company’s core competitiveness.Single unit sales (“point”) it is inevitable to face large competition small the project potential contract
limited market space; The complete equipment sales (“line”) the competitive environment improves the
competitive pressure decreases the market space increases and the potential contract amount is enlarged;
The overall solution of intelligent manufacturing (“whole”) limited competitors strong competitiveness
market space and potential contract amount is expected to expand for several times.Take the (high temperature) operation robot for sub-merged arc furnace as an example the urgent demand
for safety production and replacing labors for traditional calcium carbide sub-merged arc furnace industry
based on the industrial robot technology the Company successfully developed and applied (high temperature)
sub-merged arc furnace operation robot which replaces manual work in dangerous and harsh environments
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 subverts the traditional production operations of the
industry (“whole”) realizing few men unmanned factories and intelligent manufacturing.
26HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(6) Based on the technological breakthroughs and accumulation of technology in a certain field
cross-industry “re-development” and “re-application” accelerate the Company’s core competitiveness.Based on the technological breakthrough and technology accumulation in the direction of special operation
robots in calcium carbide high-temperature operation environment the Company has carried out horizontal
redevelopment for high temperature furnace operation environments of multiple submerged arc furnace such
as ferrosilicon silicon manganese industrial silicon etc. also has achieved stage-by-stage application results
and has signed orders for the products one after another. In the future the Company can redevelop and
reapply the technology formed in the overall solution of the intelligent factory of calcium carbide submerged
arc furnace to the field of submerged arc furnace mentioned above accelerate the enhancement of the
Company’s core competitiveness.Legend：The product atlas of special operation robot in high temperature environment
(7) Smart workshops smart factories and overall solutions further enhance the Company’s
competitive advantages.The Company applies intelligent technologies such as visual recognition deep learning robot control
algorithm and expert control strategy combined with industrial Internet communication technology to the
overall solution of intelligent workshops and smart factories in order to achieve the minimum number of
people and unmanned workshops relying on intelligent production decision-making management to help
customers produce safely and efficiently and promote the upgrading of intelligent manufacturing industry in
related industries.At present the Company is actively implementing the carbide finished product post-processing smart factory
contract and smart workshop project signed with Inner Mongolia Junzheng Chemical Co. Ltd. and Ningxia
27HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Younglight Chemicals Co. Ltd. with a total value of about RMB 360 million. If the projects are successfully
accepted and delivered in 2024 this typical application of this new type of productivity firstly the
realization of high-tech products to replace the dangerous harsh heavy working conditions of manual work
promote the change of production methods improve the safety of workers and well-being is of great
significance to the calcium carbide industry it is an innovative application that overturns the traditional way
of craftsmanship; Secondly the overall market space of the smart factory theoretically expected to form
several times ten times the potential market demand of the original high-temperature furnace operation robot.“whole” which is the ability of the overall smart factory solution determines whether the Company can
gain a greater competitive advantage in the future market competition.Legend：Calcium carbide production intelligent workshop to achieve few people unmanned production operations
(8) Brand competitiveness
The Company builds brand with quality seeks progress with technology and wins trust with service.Through high-quality products and efficient services we strive to realize production automation digitization
and intelligent manufacturing for customers. The Company’s brand enjoys a constant leading in popularity
high reputation and customer loyalty in the main domestic product application fields. The Company pursues
excellence leads the development of intelligent manufacturing equipment in the application industry and
builds up a stable cooperative and win-win customer base for a long time. High-quality customer resources
and huge potential demand for intelligent manufacturing equipment is the source of the Company’s
sustainable and rapid development.
(9) Achievements in intellectual property proprietary technology and software copyright.
During the reporting period the Company obtained 50 patents approved by the State Intellectual Property
Office including 8 invention patents and 42 utility model patents; 15 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.)
28HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(10) 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 can be widely used in intelligent manufacturing
equipment such as automatic loading logistics system in many industries have transformative impact on
replacing manual operations in high-risk or heavy manual working conditions to achieve safe production and
improve production efficiency. Meanwhile standardized intelligent equipment operations improve the
capacity utilization rate reduce costs and enhance efficiency of the enterprise and support the early
realization of the national double carbons goal.The Company actively develops new quality productivity the ability of 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 2023 facing the insufficient growth momentum external environment and unfavorable demand in the
world economy China actively responded to the complex and volatile international political and economic
situation gave full play to its own advantages and the economy continued to rebound steadily. The state
vigorously advocates the development of new quality productivity promote the construction of modernized
industrial system accelerate the cultivation and growth of strategic emerging industries and promote the
development of the digital economy and the advanced manufacturing industry the deep integration of
modern service industry. The Company’s intelligent manufacturing equipment products are widely used in
many head customers of petrochemical and chemical industry sub-merged arc furnace new energy food
animal feeds building materials medicine food port and other pillar industries of the national economy. In
the future the demand for industrial digitalization intelligence and equipment renewal in these fields is
optimistic for a long time providing the company with a stage for sustained and rapid development.During the reporting period driven by the two core growth businesses of intelligent manufacturing
equipment and industrial services the Company’s revenue and profit hit a new high. In 2023 the Company
realized operating revenue of RMB 2.565 billion with a year-on-year growth of 19.11%; Net profit
attributable to the parent company amounted to RMB 534 million with a year-on-year growth of 19.90%;
The Company’s weighted average return on equity (ROE) was 16.22%. The Company faces the future needs
of the industry increases R&D inputs enhance competitiveness R&D investment of RMB146 million in the
reporting period an increase of 22.91% year-on-year R&D expenses accounted for 5.69% of operating
revenue. From the composition of operating revenue the operating revenue of intelligent manufacturing
equipment and industrial services occupy 68.40% and 27.95% of total revenue 75.37% and 18.56% of
overall gross profit respectively. Thanks to R&D path of “point → line → whole” in recent years the
29HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Company achieved good performance in the reporting period realized multi-category expansion in products
continuous expansion in the application market substantial increase in demand of intelligent manufacturing
equipment continuous improvements of industrial service.Operating revenue Gross profit
(RMB 0.1 billion) (RMB 0.1 billion)
Note: in the above figure Contributing Gross profit= Operating revenue of corresponding business – Operating cost the contribution
gross profit does not consider the impact of profit and loss of minority shareholders.During the reporting period the main operating data and main financial indicators realized by the Company
are listed as follows
Unit：RMB
Item 2023 2022 Year-on-year growth
Operating revenue 2565408783.42 2153746152.69 19.11%
Operating profit 633603259.16 514097879.71 23.25%
Total profit 638059931.66 512038672.63 24.61%
Net profit 552949392.85 447751710.09 23.49%
There of: Attributable to shareholders of the
533591213.86445041007.9819.90%
parent company
30HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(2) Operating revenue and cost of sales
* Breakdown of operating revenue
Unit：RMB
2023 2022 Increase/Decre
ase over the
Proportion of Proportion
Amount Amount same period of
revenue of revenue
previous year
Total 2565408783.42 100% 2153746152.69 100% 19.11%
Categorized by industry
Intelligent manufacturing equipment 1754845282.12 68.40% 1418872768.27 65.88% 23.68%
Industrial service 717017884.35 27.95% 639013258.02 29.67% 12.21%
Environmental protection process and
93545616.953.65%95860126.404.45%-2.41%
equipment
Categorized by product
Post-processing intelligent
manufacturing equipment for solid 1372204429.15 53.49% 944248796.84 43.84% 45.32%
material
Intelligent logistics warehousing
175413133.946.84%57275871.172.66%206.26%
systems
Robots plus 134576925.32 5.25% 195549679.66 9.08% -31.18%
Post-processing intelligent
72650793.712.83%221798420.6010.30%-67.24%
manufacturing equipment for rubber
Operation maintenance and
606991420.1823.66%530485359.2524.63%14.42%
after-sales type industrial services
Supplementary industrial services and
110026464.174.29%108527898.775.04%1.38%
others
Environmental process and complete
93545616.953.64%95860126.404.45%-2.41%
equipment
Categorized by region
Region of east China 896345862.84 34.94% 880640289.07 40.89% 1.78%
Region of south China 300459581.67 11.71% 116994995.52 5.43% 156.81%
Region of central China 68220171.50 2.66% 50027352.95 2.32% 36.37%
Region of north China 400478345.88 15.61% 337846315.45 15.69% 18.54%
Region of northwest China 530568521.70 20.68% 505048427.65 23.45% 5.05%
Region of southwest China 130943956.98 5.10% 94240219.62 4.38% 38.95%
Region of northeast China 226113529.63 8.81% 155254832.09 7.21% 45.64%
31HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Overseas 12278813.22 0.49% 13693720.34 0.63% -10.33%
Categorized by sales model
Direct sales 2565408783.42 100.00% 2153746152.69 100.00% 19.11%
* Industries 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
1754845282.121046300125.3240.38%23.68%22.96%0.35%
equipment
Industrial service 717017884.35 542516401.53 24.34% 12.21% 15.36% -2.06%
Environmental protection
93545616.9536498530.2760.98%-2.41%2.90%-2.02%
process and equipment
Categorized by product
Post-processing intelligent
manufacturing equipment for 1372204429.15 775899381.34 43.46% 45.32% 30.83% 6.27%
solid material
Intelligent logistics
175413133.94144686023.9117.52%206.26%235.45%-7.17%
warehousing systems
Robots plus 134576925.32 79797554.14 40.70% -31.18% -24.92% -4.95%
Post-processing intelligent
manufacturing equipment for 72650793.71 45917165.93 36.80% -67.24% -57.68% -14.28%
rubber
Operation maintenance and
after-sales type industrial 606991420.18 443169450.42 26.99% 14.42% 18.22% -2.35%
services
Supplementary industrial
110026464.1799346951.119.71%1.38%4.12%-2.37%
services and others
Environmental process and
93545616.9536498530.2760.98%-2.41%2.90%-2.02%
complete equipment
Categorized by region
Region of east China 896345862.84 580630231.88 35.22% 1.78% 10.79% -5.27%
32HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Region of south China 300459581.67 173522594.83 42.25% 156.81% 132.52% 6.04%
Region of central China 68220171.50 51977927.58 23.81% 36.37% 82.15% -19.15%
Region of north China 400478345.88 251268258.81 37.26% 18.54% 17.26% 0.68%
Region of northwest China 530568521.70 345045172.71 34.97% 5.05% -1.86% 4.58%
Region of southwest China 130943956.98 76349052.27 41.69% 38.95% 22.36% 7.90%
Region of northeast China 226113529.63 139553180.12 38.28% 45.64% 51.41% -2.35%
Overseas 12278813.22 6968638.93 43.25% -10.33% -23.19% 9.50%
Categorized by sales model
Direct sales 2565408783.42 1625315057.12 36.64% 19.11% 19.80% -0.37%
Where the Company’s statistical criteria for core business data are adjusted during the reporting period 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:
During the reporting period the Company’s two core growth business intelligent manufacturing equipment
and industrial services whose revenue realized a year-on-year growth of 23.68% and 12.21% respectively
operating revenue of RMB 1.755 billion and RMB 717 million respectively both hit the best level in history.The revenue of environmental process and complete equipment was close to the previous year occupied
3.65% of overall revenue the gross profit rate continued to maintain a high level of 60.98% which
ornamented the overall performance.Intelligent manufacturing equipment:
Post-processing intelligent manufacturing equipment for solid material: Due to the centralized delivery and
revenue recognition of the post-processing intelligent manufacturing equipment for powder and granule
represented by FFS (form-fill-seal full-automatic packaging equipment) and post-processing intelligent
equipment for polysilicon. The operating revenue of post-processing intelligent manufacturing equipment
for solid material increased significantly by 45.32% year-on-year reached RMB 1.372 billion. This
operating revenue level is close to the overall revenue scale of intelligent manufacturing equipment in 2022;
Benefited from the year-on-year improvement of the profit level of post-processing intelligent
manufacturing equipment for powder and granule and post-processing intelligent equipment for polysilicon
as well as the performance and delivery and revenue recognition of high gross profit rate contract orders the
gross profit of post-processing intelligent manufacturing equipment for solid material was 43.46% an
increase of 6.27% year-on-year which was a new high in recent years and reflected the core competitiveness
of the Company’s products.
33HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Intelligent logistics warehousing systems: Due to the centralized delivery and revenue recognition during
the reporting period the operating revenue increased sharply by 206.26% year-on-year realized operating
revenue of RMB175 million exceeded RMB 100 million for the first time. Due to some of projects revenue
confirmed in the current period executed longer and expenditures increased due to improvement the direct
cost of the project was higher and the gross profit rate was only 17.52%. From the perspective of the market
competition pattern the gross profit rate of the intelligent logistics and warehousing system in the next two
years is expected about 20-30%.Robots plus: Affected by the reduction of installation of (High temperature) operation robot for submerged
arc furnace and two projects of calcium carbide smart factory has not confirmed the operating revenue was
RMB 135 million decreased 31.18% year-on-year; The gross profit rate also declined but the overall level
remained at a good level of 40.70%.Post-processing intelligent manufacturing equipment for rubber: The delivery and acceptance decreased
during the reporting period and the operating revenue was RMB 73 million decreased 67.24% year-on-year;
The gross profit rate of projects confirmed was lower in the current period with an average of 36.80%;
In summary during the reporting period the overall performance of the Company’s intelligent
manufacturing equipment was outstanding the Company achieved revenue of RMB 1.755 billion and the
gross profit rate increased to 40.38% in 2024 there is still room for better performance.Industrial services: Industrial services continued growing this period the operating revenue of this kind was
RMB 717 million an increase of 12.21% year-on-year and closed to the Company’s overall revenue level in
2017. Affected by the centralized maintenance of some production operation and maintenance integration
projects and the negative factors of service performance cost fluctuations the gross profit rate of industrial
services was under pressure to 24.34% which was higher than that of medium-term. Compared with China’s
huge capacity scale production operation and maintenance integration potential market the Company’s
industrial service business has a long-term development space in the direction of the integration of modern
service industry and advanced manufacturing industry which is actively advocated by the state.Environmental process and complete equipment: During the reporting period the revenue of this kind was
RMB 94 million and the gross profit rate was maintained at an excellent level of 60.98% contributing
nearly RMB 20 million to the net profit attributable to parent company’s shareholders which constituted a
beneficial supplement to the Company’s overall performance.From the region perspective based on the Company’s business model the operating revenue usually varies
from period to period which is mainly affected by demand fluctuations from region to region and structural
changes of product demand as well as Company response demands completion of product delivery and
acceptance progress etc. It is not a typical fluctuation of gross profit rate divided by region please refer to
explanation of operating revenue and gross profit rate changes for details.
34HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(3) Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Sub-total of cash inflows from
2417361797.412519478243.51-4.05%
operating activities
Sub-total of cash outflows from
2278419139.402067946277.3110.18%
operating activities
Net cash flows from operating
138942658.01451531966.20-69.23%
activities
Sub-total of cash inflows from
5636466482.272476439835.45127.60%
investing activities
Sub-total of cash outflows from
5808835108.542751087752.50111.15%
investing activities
Net cash flows from investing activities -172368626.27 -274647917.05 37.24%
Sub-total of cash inflows from
33120286.94493090000.00-93.28%
financing activities
Sub-total of cash outflows from
327086068.16309612826.815.64%
financing activities
Net cash flows from financing
-293965781.22183477173.19-260.22%
activities
Net increase in cash and cash
-326267521.07366262667.59-189.08%
equivalents
Explanation of why any of the data above varies significantly:
√Applicable □Not applicable
* Net cash flows from operating activities during the current period decreased by 69.23% compared with the
same period of last year mainly due to the performance of contracts and the increase of operating cash
outflow from production inputs and procurement during the reporting period at the same time contract
payments received from customers decreased year-on-year.* Net cash flows from investing activities for the current period increased by 37.24% compared to the same
period last year mainly due to the impact of cash management activities;
* Net cash flows from financing activities in the current period decreased by 260.22% compared with the
same period last year mainly due to the arrival of funds raised by the Company’s issuance of convertible
corporate bonds in the previous period;
35HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
* The net increase in cash and cash equivalents for the current period was -326.2675 million a decrease of
189.08% year-on-year which was jointly affected by the net cash flow from operating activities investment
activities and financing activities.Explanation of why net cash flows from operating activities vary significantly from net profit for the
reporting period:
√Applicable □Not applicable
The difference between the net cash flows from operating activities during the reporting period and the net
profit in the current year was RMB 414 million mainly due to the following reasons: The impact of contract
performance the Company prepared for production production input procurement and other operating cash
outflows increased while the contract money received from the customers decreased year-on-year.
5. Analysis of Assets and Liabilities
(1)Significant Changes in Asset Composition
Unit: RMB
Dec 31 2023 Jan 1 2023
Increase/
Proportion Proportion Decrease in Major changes
Amount of total Amount of total
proportion
asset asset
Cash at bank and on Mainly due to the impact on
332216413.355.00%659606109.1710.60%-5.60%
hand cash management activities.Due to the increase in operating
Accounts receivable 1004337478.08 15.11% 856529854.29 13.77% 1.34%
revenue.Contract assets 119436138.29 1.80% 124651440.99 2.00% -0.20%
In order to fulfill the contract
increased production
Inventories 2405309228.52 36.18% 1912047999.38 30.74% 5.44%
organization inputs and the
scale of inventory.Due to the increase in renting
Investment properties 11771642.38 0.18% 6373135.42 0.10% 0.08% out the real estate which vacant
temporarily.Long-term equity
404005942.776.08%397830998.406.40%-0.32%
investments
Fixed assets 229647272.08 3.45% 192561428.46 3.10% 0.35%
Construction in
74985542.78 1.13% 27241137.26 0.44% 0.69% Capital construction investment.
progress
Due to the increase in the lease
Right-of-use assets 4912571.51 0.07% 2349347.56 0.04% 0.03%
of factory of subsidiaries.Short-term borrowings 23872075.01 0.36% 31830000.00 0.51% -0.15%
Contract liabilities 1763411436.97 26.52% 1725223007.33 27.74% -1.22%
Due to the increase in the lease
Leased liabilities 1374283.98 0.02% 0.00% 0.02% of factory of subsidiaries this
period.
36HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Assets overseas account for a relatively high proportion.□Applicable √Not applicable
(2) Assets and liabilities measured at fair value
Unit: RMB
Amount
Profit or loss
Cumulative fair provided
from change
value change for Purchased in Sold in the
Item Opening balance in fair value Other changes Closing balance
charged to impairme the period period
during the
equity nt in the
period
period
Financial assets
Financial asset
held for
trading
1268124738.438454005.9017408744.333077230000.003551560000.00802248744.33
(excluding
derivativefinancial )）
Investments in
other equity 57477364.10 -1045306.70 28905741.40 988328.83 55443728.57
instruments
Financing
111064333.27-38531072.9072533260.37
receivables
Sub-total of
1436666435.807408699.2046314485.733077230000.003552548328.83-38531072.90930225733.27
the above
Financial
0.000.000.000.000.000.000.00
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
37HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(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 1883408.27 Bank deposit held on letter of guarantee.Cash at bank and on hand 7300.00 Minimum deposit of ETC toll bank account.Intangible assets 4392605.67 Land use right used for mortgaged bank loans of holding subsidiary.Fixed assets 12955232.75 Real estate is used as collateral for bank loans of holding subsidiary.Total 19238546.69
6. 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)
404005942.77397830998.401.55%
The investments above are all investments made by the Company in associates or joint ventures.
(2)Significant equity investment made in the reporting period
□Applicable √Not applicable
(3)Significant non-equity investments ongoing in the reporting period
□Applicable √Not applicable
(4)Financial investments
* Securities investments
□Applicable √Not applicable
No such cases in the reporting period.* Derivatives investments
38HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
□Applicable √Not applicable
No such cases in the reporting period.
(5) Use of Raised Funds
* Overall usage of funds raised
Unit: RMB’0000
Accum Proportio
Total Total Amount
ulative n of
funds Accum funds The usage of funds
Total Net funds accumula Total
Way of used in ulative with and raised
Year funds funds with tive funds unused
raising the fund usage destination of idle for
raised raised usage with funds
Current used chang unused funds over two
change usage
Period ed years
d changed
The Company
should conduct
Issuance of special account
convertible management and
20224500044341.8612380.3530459.20000.00%14596.960
corporate cash
bonds management for
the funds not yet
used.Total -- 45000 44341.86 12380.35 30459.20 0 0 0.00% 14596.96 -- 0
Explanation of overall usage of funds raised
As of December 31st 2023 the Company raised fund has used a total amount of RMB 304.592 million (excluding the deducted issuance
expenses of RMB 6.5814 million) and the raised funds has not used of RMB 145.9696 million (including income from the cash management of
the raised fund RMB 7.143 million.)
* Commitment projects of fund raised
Unit: RMB’0000
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
16000. 16000 6425.31 7926.29 49.54% September 30th2024
production project.
2. Sub-merged arc furnace smelting robot and its
9000 9000 3307.53 6150.47 68.34% June 30th2025
intelligent factory R & D demonstration project.
3.Project of technology innovation and service
7000 7000 2647.51 4040.58 57.72% November 30th2023
center (R&D center)
4.Supplementary working capital 12341.86 12341.86 0 12341.86 100.00% Not applicable
Total 44341.86 44341.86 12380.35 30459.2 -- --
39HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
* Re-purposed raised funds
□Applicable √Not applicable
No such cases in the reporting period.
(6) Related investment progress
* 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
40HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
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 the
wholly-owned subsidiary of the Company at the end of reporting period the Company holds 5.98% 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.* 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 more than RMB 60 million of
project investment returns and profit distribution the earnings are good.* The Progress of enterprises invested by the Company declare to IPO
Shanghai Bloom Technology Co. Ltd. which is invested by the Company was listed on the main board of
th
Shanghai Stock Exchange on January 10 2024 with the stock abbreviation: Bloom Technology stock code:
603325. The total share capital of Bloom Technology after the initial public offering is 66670000 shares.
The Company as a non-controlling shareholder holds 14.40% of the total share capital of Bloom
Technology after the initial public offering.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 June 2023 the application for initial public offering of shares and listing on the science and
technology innovation board was approved by the Listing Review Committee of the Shanghai Stock
Exchange and it needs to be registered with the China Securities Regulatory Commission before it can start
the follow-up work of the IPO.
41HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
V. The Company’s Outlook for Future Development
1. Developing new productivity and actively laying out future industries.
The essence of new quality productivity is advanced productivity which is led by innovation free from the
traditional mode of economic growth and productivity development path characterized by high technology
high efficiency and high quality and in line with the new development concept. The new quality of
productive forces is generated by revolutionary breakthroughs in technology innovative allocation of
production factors and in-depth transformation and upgrading of industries. China has the comprehensive
advantages of a complete industrial system a large industrial scale and rich application scenarios which
provide a rich soil for future industrial development. Efforts will be made to develop future manufacturing
realize intelligent manufacturing break through key core technologies such as humanoid robots and
strengthen future high-end equipment in the face of the country’s major strategic needs and the people’s
needs for a better life.The development of new quality productivity coincides with the Company’s efforts to promote the
integration of advanced manufacturing and information technology and empower the digital intelligent and
green development of manufacturing in recent years. In the application field of intelligent manufacturing
equipment the Company has realized the stage and capability of spanning from single machine and
automated production line to digital workshop intelligent factory and overall solutions. The Company will
apply cutting-edge technologies such as machine vision recognition force sensing technology deep learning
robot control algorithm and expert control strategy combined with 5G and industrial Internet
communication technology to digital workshop intelligent factory and overall solutions scientific
optimization innovation and transformation of traditional production processes and methods to achieve a
significant increase in total factor productivity to help users to achieve high quality efficient and green
production.In the new round of scientific and technological revolution and industrial transformation to accelerate the
evolution of the opportunity major cutting-edge technologies and disruptive technologies continue to emerge
scientific and technological innovation and industrial development integration is deepening vigorously
cultivating future industries has become a strategic choice to lead scientific and technological progress drive
industrial upgrading open up a new track and shape new quality productivity. As a leading technology
enterprise in the early independent R&D and application of industrial robot technology and the deep
application of special robots in multi-field sub-merged arc furnace the Company signed the Strategic
th
Cooperation Framework Agreement with HIT on August 18 2023 in the face of the humanoid robot a
typical symbol of the future industry of new quality productivity. Jointly set up a humanoid robot key
technology and principle prototype industrialization R&D project the future principle prototype will face
application scenarios continuous progress and iteration and ultimately committed to the commercial
application of general artificial intelligence humanoid robots. The Company will actively continue to further
promote this strategic development direction.
2. Focus on the intelligent manufacturing industry direction“Manufacturing is the main body of the national economy the foundation of building the country the
42HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
thinstrument of rejuvenating the country and the foundation of strengthening the country” “The 14 Five-YearthPlan” Intelligent Manufacturing Development Plan the“14 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 vigorous 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 industries has become
the first choice of backbone enterprises in the industry.st
Entering the 21 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 technologies have advanced by leaps and bounds which provide reliable technical support and
the possibility of scale application for the Company to accelerate the development of products from
“automation” to “digital” and “intelligent”. The Company grasps the opportunity of the times 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 and
expand industrial service business; 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.In the direction of focused development in the field of intelligent manufacturing equipment the
Company actively carried out the R&D application and promotion of new technologies and products.The following areas will become the power engine that will continue to drive the synergistic
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
43HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
development mode optimizing the economic structure and transforming the growth drivers have entered a
critical period. China has the comprehensive advantages of a complete industrial system a large industrial
scale and rich application scenarios which provide a rich soil for the development of new quality
productivity. With years of technical accumulation and industrial practical experience in the field of
large-scale intelligent manufacturing equipment the Company focuses on the following areas empowering
customers to accelerate intelligent manufacturing.* Overall solution of post-processing intelligent manufacturing equipment for solid material.Legend: Schematic diagram for overall solution of post-processing intelligent manufacturing equipment for solid material
The overall solution of post-processing intelligent manufacturing for solid material includes weighing
packaging palletizing film hooding digital outbound & inbound intelligent loading and control system 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.* Overall solution of intelligent factory.Legend: Schematic diagram for overall solution of intelligent factories
44HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(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 achieves scientific independent economic safe efficient green production progress.* Intelligent manufacturing equipment and intelligent plant solutions covering all categories of
polysilicon.Solar energy is a clean safe and reliable source of energy that can be used for grid-connected power
generation as well as stored in a variety of ways such as through energy storage and hydrogen production
and can theoretically almost stably meet China’s future energy needs. In the past two years geo-military
conflicts in Europe have led to tensions in energy supply and the advantages of distributed solar photovoltaic
power generation have emerged and solar energy has developed into an important part of the future energy
strategy of some countries. China is full of light the distribution of light energy resources is more uniform
the State has formulated a “Carbon peak and Carbon neutral” dual carbon strategy for the photovoltaic
industry to provide a broad space for development. In the huge demand expectation in recent years China’s
photovoltaic industry polysilicon raw materials field ushered in large-scale expansion with intelligent
equipment to improve production efficiency is the industry preferred choice.Since 2019 the industry’s first block polysilicon packaging equipment products developed by the Company
have been synchronously applied to the production field of Daqo Energy and new special energy polysilicon
raw materials the Company has continued to increase R&D inputs and has formed a series of products with
a variety of unit combinations such as gross weight net weight prefabricated bag and FFS homemade bag in
block monocrystalline silicon block polysilicon and granular polysilicon within multiple plates. The
Company combines the unit system equipment products with the reduction of silicon rod crushing screening
magnetic separation AGV directional transportation measurement and plastic packaging factory logistics
and other processes through digitalization and information enabling has the ability of crystal silicon smart
factory overall solution. The Company has extensive cooperation with GCL Group Tongwei Group
Yongxiang Shares Daqo Energy Xinte Energy Asia Silicon Tianhong Ruike Qinghai Lihao Runyang
45HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Shares Baofeng Energy Hongyuan Energy Xinjiang Qiya Eastern Hope Red Lion Semiconductor and
many other domestic new energy enterprises the Company’s competitiveness is outstanding in this field.Legend: Schematic diagram for intelligent manufacturing equipment and intelligent plant solutions 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 compared with 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. The State will focuse on the top 10 key application
areas led by the manufacturing industry break through more than 100 kinds of robot innovative application
technologies and solutions promote more than 200 typical robot application scenarios with high technical
level innovative application mode and significant application results and create a number of “robot plus”
application benchmarking enterprises.Under the environment of high risk heavy and harsh working conditions the hidden trouble of safety
production is large. Under the impact of the digital economy model in the service industry there is a
structural supply and demand dislocation in human resources and employment problems raised by
manufacturing enterprises. Enterprises in the industry are limited by outdated technology manual production
and they are generally faced with difficult problems such as high safety production cost low degree of
operation standardization unstable product quality high operation risks and insufficient capacity utilization
rate. The Company’s high-temperature special operation robots represented by sub-merged arc robots
tamping robots and inspection robots and scale applications in the direction of intelligent factories for the
post-processing of calcium carbide sub-merged arc furnace etc. can effectively solve the pain points of the
industry and achieve scientific and technological empowerment.
46HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
* Calcium carbide high temperature special operation robot plus
Legend: Schematic diagram of Sub-merged arc robot and tamping robot replacing manual operation replacing manual operation
The application effect of the Company’s self-innovated and developed (high temperature) operation robot
and its peripheral system in the field of sub-merged arc furnace of calcium carbide is remarkable It can solve
many pain points that cannot be solved by manual operation in traditional discharging link completely to
realize fewer people unmanned safe efficient environmental intelligent manufacturing production
requirements truly realize the transformation of traditional industries with high-technology and drive the
industrial upgrading of intelligent manufacturing.* Post-processing intelligent factory for calcium carbide sub-merged arc furnace
Legend: Few people on the production site and unmanned of calcium carbide sub-merged arc furnace
intelligent factory during implementation of the project
47HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
During the reporting period in the direction of electric stone furnace smart factory the company actively
implemented and signed intelligent factory/workshop contracts for calcium carbide finished product
post-processing with Inner Mongolia Junzheng Chemical Co. Ltd. and Ningxia Yingli Chemical Co. LTD.with a total contract value of about RMB 360 million. At present the project has realized ignition operation
and is progressing smoothly. This is the first domestic innovative application of replacing the original manual
work process with the new quality productivity in the field of calcium carbide production which greatly
realizes the production and operation of fewer people unmanned digital and intelligent production and
operation. It is the technological change of transforming the traditional industry with advanced productivity
and changing the production and life by science and technology as well as the epoch-making innovative
practice of liberating the productive forces and improving the well-being of the workers’ safety production.Technology enterprises are given by the mission of change in this application field the Company has great
potential in the future.* “Special operation robot plus” facing other high temperature operation environment of sub-merged
arc furnace.Based on the successful development 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 has
continued to research and develop high-temperature special operation robots and other intelligent equipment
for the field of sub-merged arc furnace such as ferrosilicon silicon manganese and industrial silicon
furnaces. The Company has made the following positive progress and has successively achieved milestones.Ferrosilicon sub-merged arc furnace field: Ferrosilicon disk casting system has entered the subsequent
market promotion stage and small-batch orders have been signed meanwhile got positive feedback from the
demand field; Ferrosilicon high-temperature special operation (out of the furnace) robots has started the
R&D of new models.Silicon manganese sub-merged arc furnace field: Following the completion of customer acceptance and of
the first silicon manganese high-temperature special operation furnace robot the R&D of the new version of
the silicon manganese furnace robot with more advantageous has made positive progress.Industrial silicon sub-merged arc furnace field: After customer’s test and acceptance of the first industrial
silicon high-temperature special operations discharging robot currently the series of products have been
successively promoted and applied to improve the cost-effective at the same time to provide customers with
more application options.“High temperature calcium carbide sub-merged arc robot→ calcium carbide tamping robot→ calciuminspection robot→ post-processing intelligent workshop for calcium carbide finished products.” This course
of technological progress has opened the ceiling of industry growth while realizing the transformation oftraditional industries with high-tech products. Similarly the R&D path of “high temperature environment ofcalcium carbide sub-merged arc furnace → high temperature furnace robots of silicon manganese
48HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）ferrosilicon and industrial silicon furnace” realize R&D demonstration and promotion and application of
“robot plus” better.* 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 to achieve seamless connection between production lines or warehouses and
transport vehicles 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. Advantages are more obvious under the conditions of labor shortage and in poor
working conditions etc. and customers’ feedback and market development continue to improve.
(3) Industrial service of intelligent equipment and “industrial service plus”
The Company’s the integrated business strategy of products and service which is formulated and
implemented predictably 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. Intelligent equipment industrial service is the national key support to encourage the modern
service industry. In March 2021 the National Development and Reform Commission Ministry of Science
and Technology Ministry of Industry and Information Technologyetc. 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
49HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
and development of the manufacturing industry and the manufacturing service industry.On the one hand industrial service revenue will increase with the growth of sales and production operation
base of intelligent manufacturing equipment; On the other hand the Company will accelerate incremental
uplift of service revenue after undertaking new large-scale production and operation and maintenance 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.During the reporting period the Company’s industrial service revenue reached RMB 717 million 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.The Company actively strives to complete the national task of “Pilot unit for integrated development ofadvanced manufacturing and modern service industry” explores new models and new paths 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 3000 service personnel. At
present the Company’s industrial service network mainly serves the Company’s product customers. While
contributing considerable revenue and profits to the Company the commercial value of the Company’s
industrial service network resources is paid attention by industry 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 2024
Since 2017 the Company has continued to increase inputs in R&D achieved multi-category expansion of
products and expanded the market application field; The Company strengthens the construction of industrial
service network and continuously improves the service capacity; The Company actively develops new
quality productivity and has made great progress in the direction of digitalization and intelligence; Also has
well cultivated and developed the intelligent manufacturing equipment market leading the market demand
and the Company’s operating performance has shown sustained good and rapid growth its operating revenue
has steadily stood on the level of RMB 1 billion 1.5 billion 2 billion and 2.5 billion showing desirable
profitability.Looking forward to 2024 the Company in the direction of industrial digitalization based on the existing
market demand for intelligent manufacturing equipment and industrial services superimposed the favorable
factors of the national Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods for
New Ones combined with the scale of orders in hand the Company has the foundation ability and
confidence to achieve growth in business performance.
50HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
4.Possible Risks in the Company’s Operations
(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 inthe main equipment application field of complete large scale intelligent equipment. “Manufacturing is themain body of the national economy the foundation of building the country the instrument of rejuvenatingthe country and the foundation of strengthening the country.” China is undergoing a “transformation from bigmanufacturing country to powerful manufacturing country” and the demand for digital and intelligent
th
workshop is on the rise. “ Intelligent Manufacturing Development Plan of the 14 Five-year Plan” clearly
thexpresses “In the 14 Five-year Plan and for a long period in the future the promotion of intelligentmanufacturing should be based on the essence of manufacturing closely follow the characteristics 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 fullypopularize digital networking and backbone enterprises in key industries will basically realize intelligence.”
In the face of huge industrial digitization market prospect if the Company cannot expand the application
field of new technology in time lead guide and respond to the market demand in product development or
the industrialization process is less than expected the Company may miss demand bonus 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.Industrial Internet technology and the digital infrastructure built by 5G etc. in the field of intelligent
manufacturing provide technical convenience for the digitization and intelligence of factories; The
application level of artificial intelligence technology determines the ability of intelligent manufacturing in
the future. At present the Company has outstanding competitive advantages in the field of product
application but if the artificial intelligence technology based on 5G and industrial Internet cannot be deeply
integrated and applied in intelligent manufacturing product technology solutions in the future it will restrict
the speed and quality of the Company’s medium and long-term development constituting one of the risk
factors.
(3) The risk that “robot plus” and China intelligent equipment demand is less than expected.
In recent years the State has intensively issued the 2025 and 2035 China intelligent manufacturing 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
product applications are leading in the world. The national intelligent manufacturing industry related plan
will take the lead to implement in the backbone enterprises in the industry. The Company’s products cover
the top customers in the application field. The Company will face many development opportunities in the
51HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
future. However global inflation remains high trade protection is still severe world economic and trade
growth is weak and domestic demand needs to be boosted urgently. These factors or other unforeseen factors
are not excluded which will affect China’s future demand for high-end intelligent manufacturing equipment
and constitute one of the risk factors restricting the Company’s medium and long-term performance.
(4) The risk that “industrial services plus” expand less than expected.
Industrial service is the buffer and booster of the Company’s revenue and profit growth. Over the years the
Company’s industrial service business has continued to grow steadily during the reporting period the
revenue has exceeded RMB 700 million. In terms of the number of potential target customers and room for
growth in the industrial services production operation and maintenance business it is still at a low
penetration level compared with the Company’s target customer service base and has good development
expectations in the future. However if the Company cannot continue to develop this business direction
industrial service plus expansion is less than expected which will form one of the risk factors restricting the
Company’s medium and long-term development.
(5) In the face of the new opportunities of “robots plus” there may be risks in developing new
industrial directions.As early as 2005 the Company’s independent intellectual property rights of industrial robots on the customer
site successfully applied the Company continues to industrial robot perception technology control
technology decision-making technology applied to the Company’s large-scale intelligent equipment in the
field of engagement is in long-term technology leading advantage. In recent years the Company’s has
achieved good results in first high temperature special operation robot in the field of calcium carbide furnace
R&D application and industrialization the Company is actively implementing the demonstration project of
the overall solution of smart factory in this field. At the same time the Company actively develops special
operation robots for high temperature environment such as ferrosilicon silicon manganese and industrial
silicon sub-merged arc furnace and has successively succeeded in pilot tests and obtained small batch orders.However with the rapid development of artificial intelligence technology at present represented by
humanoid robots which are intelligent quick skillful and multi-scenario applied explain the morefar-reaching connotation and development space of robots plus. “Robot is the pearl at the top of the crown ofthe manufacturing industry” if the Company cannot continue to make progress in the field of robot plus and
accelerate the promotion of technical achievements in new areas to expand the market it is one of risk
factors affecting the medium to long-term competitiveness of the Company.
(6) The risk that the R&D of humanoid robots less than expected.
In the new round of scientific and technological revolution and industrial change to accelerate the evolution
of major cutting-edge technologies disruptive technologies continue to emerge the Company as intelligent
manufacturing equipment high temperature special operation robots in the field of product application of the
leader optimistic about the field of humanoid robots major development opportunities humanoid robots as
th
one of the Company’s important strategic R&D directions. On August 18 2023 the Company signed a
Strategic Cooperation Framework Agreement with HIT to jointly establish a humanoid robot key technology
and principle prototype industrialization R&D project and jointly promote the industrialization of related
technological achievements and products. The future industry of humanoid robots is driven by cutting-edge
52HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
technologies and the relevant R&D industrialization investment is inevitably accompanied by greater
risks.The field of humanoid robots different from the Company’s intelligent manufacturing equipment
high-temperature furnace operation robots and other industrial fields is a new cutting-edge highly
challenging field of technological innovation therefore so there is uncertainty about future success. In
cooperation with HIT the Company has complementary advantages multi-disciplinary crossover and
multi-department participation which is systematic complex phased and long-term. Whether and when the
expected results can be achieved in R&D is highly uncertain which constitutes one of the risk factors. In the
implementation process whether the phased results can meet the expectations whether it has the advanced
level and whether there is market demand there is a great uncertainty which constitutes one of the risk
factors; In the process of implementation even if there are expected R&D results there is great uncertainty
about whether industrialization can be smoothly carried out in the future whether industrialization has
comprehensive advantages and whether it can quickly obtain market share which constitutes one of the risk
factors. The implementation of the project has long-term characteristics and cannot have a positive impact on
the Company’s financial data in the short term. In the specific process of promotion there are unforeseen
factors that will affect the progress of R&D and the transformation of results and constitute one of the risk
factors. Due to the pioneering nature of the project it will be subject to the limitations of the industry and the
scientific and technological level of the industry. If there are key technologies yet to be improved in the
industry as a whole it will affect the R&D progress or industrialization process and constitute one of the risk
factors. Considering the above risks it is inevitable that in the implementation process of humanoid robot
projects there are still other unforeseen risk factors which constitute one of the risk factors that the company
needs to face.
(7) 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 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.
53HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
VI. Financial statements
(1) Consolidated Balance Sheet
Prepared by HARBIN BOSHI AUTOMATION CO. LTD. Unit: RMB
Item Dec 31 2023 Jan 1 2023
Current assets:
Cash at bank and on hand 332216413.35 659606109.17
Financial assets held for trading 802248744.33 1268124738.43
Derivative financial assets
Bills receivable 273519045.87 307322625.28
Accounts receivable 1004337478.08 856529854.29
Financing receivables 72533260.37 111064333.27
Prepayments 77455740.98 139594005.25
Other receivables 30774548.13 29316161.67
Thereof: Interest receivable
Dividend receivable 2601281.28 2601281.28
Inventories 2405309228.52 1912047999.38
Contract assets 119436138.29 124651440.99
Assets held for sale
Non-current assets due within one year 4434380.89
Other current assets 615166444.19 8781928.47
Total current assets 5737431423.00 5417039196.20
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 16425314.82
Long-term equity investments 404005942.77 397830998.40
Other equity instruments investments 55443728.57 57477364.10
Other non-current financial assets
Investment properties 11771642.38 6373135.42
Fixed assets 229647272.08 192561428.46
Construction in progress 74985542.78 27241137.26
Productive biological assets
54HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Oil and gas assets
Right-of-use assets 4912571.51 2349347.56
Intangible assets 53974953.86 57090300.02
Development costs
Goodwill 401878.10 1120909.26
Long-term deferred expenses 106486.62 84955.75
Deferred tax assets 36471682.14 40346163.61
Other non-current assets 23114349.36 20759073.65
Total non-current assets 911261364.99 803234813.49
Total assets 6648692787.99 6220274009.69
Current liabilities:
Short-term loans 23872075.01 31830000.00
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 337812103.72 227581839.47
Advances from customers 96750.00 96750.00
Contract liabilities 1763411436.97 1725223007.33
Employee benefits payable 76649155.81 70475565.86
Taxes payable 20117689.42 54028725.59
Other payables 30001942.32 3035031.46
Thereof: Interest payable
Dividend payable 24500000.00
Liabilities held for sale
Non-current liabilities due within one year 2470313.79 2097594.87
Other current liabilities 163555006.18 119463543.08
Total current liabilities 2417986473.22 2233832057.66
Non-current liabilities:
Long-term loans
Bonds payable 431953084.05 415824511.11
Thereof: Preference shares
Perpetual debts
Lease liabilities 1374283.98
Long-term payable
55HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Long-term employee benefits payable
Provisions 7137432.08 5195263.40
Deferred income 4023518.90 4781549.13
Deferred tax liabilities 16429627.86 14379548.84
Other non-current liabilities 172145404.60 199568192.56
Total non-current liabilities 633063351.47 639749065.04
Total liabilities 3051049824.69 2873581122.70
Shareholders’ equity：
Share capital 1022556602.00 1022550000.00
Other equity instruments 32096067.08 32103507.97
Thereof: Preference shares
Perpetual debts
Capital reserve 236467353.62 226083353.77
Less: treasury shares 8865506.80
Other comprehensive income 22252223.39 22852245.26
Specific reserve 28883002.75 29243725.77
Surplus reserve 355000124.41 300521872.89
General risk reserve
Retained earnings 1761948265.24 1536228275.48
Total equity attributable to shareholders of the parent company 3450338131.69 3169582981.14
Minority shareholder equity 147304831.61 177109905.85
Total shareholders’ equity 3597642963.30 3346692886.99
Total liabilities and shareholders’ equity 6648692787.99 6220274009.69
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(2) Balance Sheet of Parent Company
Unit: RMB
Item Dec 31 2023 Jan 1 2023
Current assets:
Cash at bank and on hand 169835957.63 558638558.10
Financial assets held for trading 705945509.61 1067854254.08
Derivative financial assets
Bills receivable 243137102.77 247221244.29
Accounts receivable 928973179.55 799216696.68
56HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Financing receivables 27958555.18 89925115.89
Prepayments 69555358.51 110843454.45
Other receivables 75073941.10 22537149.02
Thereof: Interest receivable
Dividend receivable 52839189.55 2601281.28
Inventories 2111364564.22 1594443554.27
Contract assets 114524287.72 123540319.09
Assets held for sale
Non-current assets due within one year 4434380.89
Other current assets 607681665.24 14227088.07
Total current assets 5058484502.42 4628447433.94
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 16425314.82
Long-term equity investments 749170942.77 740518264.70
Other equity instruments investments 24231515.74 27117364.10
Other non-current financial assets
Investment properties 5791346.16
Fixed assets 191493021.03 152430504.15
Construction in progress 21429854.11
Productive biological assets
Oil and gas assets
Right-of-use assets 441271.74
Intangible assets 37370956.92 37605591.40
Development costs
Goodwill
Long-term deferred expenses 106486.62 84955.75
Deferred tax assets 30148563.57 24156362.90
Other non-current assets 20618931.75 11463555.05
Total non-current assets 1075357079.38 1015247723.90
Total assets 6133841581.80 5643695157.84
Current liabilities:
Short-term loans 3872075.01
57HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 500594175.64 264814384.36
Advances from customers 0.00
Contract liabilities 1502597287.71 1571364637.48
Employee benefits payable 53301214.79 48097569.96
Taxes payable 13220192.52 37236011.40
Other payables 12339507.40 7650725.57
Thereof: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 620757.74 802551.69
Other current liabilities 149242100.10 104756129.31
Total current liabilities 2235787310.91 2034722009.77
Non-current liabilities:
Long-term loans
Bonds payable 431953084.05 415824511.11
Thereof: Preference shares
Perpetual debts
Lease liabilities
Long-term payable
Long-term employee benefits payable
Provisions 6115243.65 4667743.14
Deferred income 4023518.90 4781549.13
Deferred tax liabilities 8658825.27 7781001.35
Other non-current liabilities 101331890.97 117066270.00
Total non-current liabilities 552082562.84 550121074.73
Total liabilities 2787869873.75 2584843084.50
Shareholders’ equity：
Share capital 1022556602.00 1022550000.00
Other equity instruments 32096067.08 32103507.97
Thereof: Preference shares
Perpetual debts
58HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Capital reserve 235710594.29 225950067.05
Less: treasury shares 8865506.80
Other comprehensive income 5996554.15 7976982.26
Specific reserve 23403880.47 24341652.67
Surplus reserve 355000124.41 300521872.89
Retained earnings 1680073392.45 1445407990.50
Total shareholders’ equity 3345971708.05 3058852073.34
Total liabilities and shareholders’ equity 6133841581.80 5643695157.84
(3) Consolidated Income Statement
Unit: RMB
Item 2023 2022
1. Total revenue 2565408783.42 2153746152.69
Thereof : Operating revenue 2565408783.42 2153746152.69
2. Total cost 2015413207.79 1692891233.52
Thereof : cost of sales 1625315057.12 1356712204.34
Taxes and surcharges 16924224.90 23327068.38
Selling and distribution expenses 128475705.01 94505120.53
General and administrative expenses 96992703.88 112797769.70
Research and development expenses 145882428.99 118689704.65
Financial expenses 1823087.89 -13140634.08
Thereof : Interest expenses 11405000.23 4058577.85
Interest income 10412922.62 12172849.27
Add: Other income 85643578.27 62253301.72
Investment income ("-" for losses) 26994068.77 6439111.38
Thereof: Income from investment in associates and joint
8251046.844918671.51
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) 11606250.52 5644531.71
Credit impairment losses ("-" for losses) -21890207.35 -517545.77
Impairment losses ("-" for losses) -18740330.69 -20456984.96
Gains from assets disposal ("-" for losses) -5675.99 -119453.54
59HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
3. Operating profit ("-" for losses) 633603259.16 514097879.71
Add: Non-operating income 7012229.86 10006.77
Less: Non-operating expenses 2555557.36 2069213.85
4. Profit before income tax ("-" for losses) 638059931.66 512038672.63
Less: Income tax expenses 85110538.81 64286962.54
5. Net profit for the year ("-" for net losses) 552949392.85 447751710.09
(1) Classification according to operation continuity
Net profit from continuing operations(loss is stated with “-”) 552949392.85 447751710.09
Net profit from discontinued operations(loss is stated with “-”)
(2) Classified by ownership of the equity
Attributable to shareholders of the parent company 533591213.86 445041007.98
Minority interests 19358178.99 2710702.11
6. Other comprehensive income net of tax 1645867.30 570551.72
Other comprehensive income attributable to shareholders of the
1645867.301568830.37
Parent Company net of tax
(1) Other comprehensive income items which will not be
1173324.312239186.05
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
1173324.312239186.05
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
472542.99-670355.68
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
472542.99368669.04
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
-1039024.72
foreign currency financial statements
60HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
7)Others
Other comprehensive income attributable to minority shareholders
-998278.65
net of tax
7. Total comprehensive income 554595260.15 448322261.81
Attributable to shareholders of the parent company 535237081.16 446609838.35
Minority interests 19358178.99 1712423.46
8. Earnings per share
(1) Basic earnings per share 0.5218 0.4352
(2) Diluted earnings per share 0.5190 0.4352
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(4)Income Statement of Parent Company
Unit: RMB
Item 2023 2022
1. Total revenue 2323098777.41 1932734317.76
Less: cost of sales 1502368407.41 1234004746.10
Taxes and surcharges 11332635.40 19866883.67
Selling and distribution expenses 118687932.10 83597686.21
General and administrative expenses 71949853.74 66493794.43
Research and development expenses 119748592.86 93261725.64
Financial expenses 7826833.34 -6772167.40
Thereof : Interest expenses 16236210.73 4425200.49
Interest income 10197233.72 12013931.84
Add: Other income 75962326.92 59251335.18
Investment income ("-" for losses) 79672868.99 19273052.93
Thereof: Income from investment in associates and joint
8251046.844918671.51
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) 10150247.04 5290952.07
Credit impairment losses ("-" for losses) -30992975.64 1116645.57
Impairment losses ("-" for losses) -19356941.41 -10042924.16
Gains from assets disposal ("-" for losses) 182.60 -154906.34
2. Operating profit ("-" for losses) 606620231.06 517015804.36
61HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Add: Non-operating income 6924990.68 2.87
Less: Non-operating expenses 2171751.47 1943035.51
3. Profit before income tax ("-" for losses) 611373470.27 515072771.72
Less: Income tax expenses 66590955.05 64780991.53
4. Net profit for the year ("-" for net losses) 544782515.22 450291780.19
Net profit from continuing operations (loss is stated with “-”) 544782515.22 450291780.19
Net profit from discontinued operations (loss is stated with “-”)
5. Other comprehensive income net of tax -1980428.11 2607855.09
(1) Other comprehensive income items which will not be
-2452971.102239186.05
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
-2452971.102239186.05
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
472542.99368669.04
reclassified subsequently to profit or loss
1) Other comprehensive income that will be transferred
472542.99368669.04
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
foreign currency financial statements
7)Others
6. Total comprehensive income 542802087.11 452899635.28
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
62HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
(5) Consolidated Cash Flow Statement
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2303445511.93 2440433896.16
Refund of taxes and surcharges 74693918.54 47645190.27
Other cash receipts relating to operating activities 39222366.94 31399157.08
Sub-total of cash inflows from operating activities 2417361797.41 2519478243.51
Cash paid for goods and services 1347715035.13 1256546781.63
Cash paid to employees and paid on behalf of employees 513230975.10 442729532.89
Payments of taxes and surcharges 256215475.15 245464627.58
Other cash payments relating to operating activities 161257654.02 123205335.21
Sub-total of cash outflows from operating activities 2278419139.40 2067946277.31
Net cash flows from operating activities 138942658.01 451531966.20
2. Cash flows from investing activities
Cash received from withdrawing investments 5602895604.80 2365387000.00
Cash received from investment income 31519842.45 31586059.33
Net cash received from disposal of fixed assets intangible
239456.02132632.26
assets and other long term assets
Net cash received from disposal of subsidiaries and other
78281750.36
operating units
Other cash receipts relating to investing activities 1811579.00 1052393.50
Sub-total of cash inflows from investing activities 5636466482.27 2476439835.45
Cash paid to acquire fixed assets intangible assets and other
103285472.5454027752.50
long-term assets
Cash paid to acquire investments 5704938000.00 2697060000.00
Net increase of mortgaged loans
Net cash paid to acquire subsidiaries and other operating units
Other cash payments relating to investing activities 611636.00
Sub-total of cash outflows from investing activities 5808835108.54 2751087752.50
Net cash flows from investing activities -172368626.27 -274647917.05
3. Cash flows from financing activities
Cash received from capital contributions 4260000.00 1130000.00
Thereof: Cash received by subsidiaries from minority
4260000.001130000.00
shareholders’ capital contributions
63HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Cash received from borrowings 28860286.94 490760000.00
Other cash receipts from financing activities 1200000.00
Sub-total of cash inflows from financing activities 33120286.94 493090000.00
Cash repayments of borrowings 27260000.00 44060000.00
Distribution of dividends or profits and payments for interest
260107071.13256689520.45
expenses
Thereof: Cash payments for dividends or profit to minority
2450000.00
shareholders by subsidiaries
Other cash payments relating to financing activities 39718997.03 8863306.36
Sub-total of cash outflows from financing activities 327086068.16 309612826.81
Net cash flows from financing activities -293965781.22 183477173.19
4. Effect of foreign exchange rate changes on cash and cash
1124228.415901445.25
equivalents
5. Net increase in cash and cash equivalents -326267521.07 366262667.59
Add: Cash and cash equivalents at the beginning of period 656593226.15 290330558.56
6. Cash and cash equivalents at the end of period 330325705.08 656593226.15
Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua
(6)Cash Flow Statement of Parent Company
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2006180159.20 2148043331.85
Refund of taxes and surcharges 68873667.90 43162727.79
Other cash receipts relating to operating activities 31135168.13 26555939.19
Sub-total of cash inflows from operating activities 2106188995.23 2217761998.83
Cash paid for goods and services 1497845243.47 1184007023.31
Cash paid to employees and paid on behalf of employees 197427939.12 209365212.27
Payments of taxes and surcharges 184014198.50 216922898.68
Other cash payments relating to operating activities 126705618.37 76617869.20
Sub-total of cash outflows from operating activities 2005992999.46 1686913003.46
Net cash flows from operating activities 100195995.77 530848995.37
2. Cash flows from investing activities
Cash received from withdrawing investments 4856452275.96 2067057000.00
Cash received from investment income 30136048.51 31324837.21
64HARBIN BOSHI AUTOMATION CO. LTD. Annual Report 2023(Abstract）
Net cash received from disposal of fixed assets intangible
189889.53318432.26
assets and other long term assets
Net cash received from disposal of subsidiaries and other
operating units
Other cash receipts relating to investing activities 193071.00 1032393.50
Sub-total of cash inflows from investing activities 4886971285.00 2099732662.97
Cash paid to acquire fixed assets intangible assets and other
39437083.8129466374.75
long-term assets
Cash paid to acquire investments 5071758000.00 2463800000.00
Net cash paid to acquire subsidiaries and other operating units
Other cash payments relating to investing activities 2741636.00 2800000.00
Sub-total of cash outflows from investing activities 5113936719.81 2496066374.75
Net cash flows from investing activities -226965434.81 -396333711.78
3. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings 3930286.94 455000000.00
Other cash receipts from financing activities
Sub-total of cash inflows from financing activities 3930286.94 455000000.00
Cash repayments of borrowings
Distribution of dividends or profits and payments for interest
257048129.54255637500.00
expenses
Other cash payments relating to financing activities 8865506.80 6600006.95
Sub-total of cash outflows from financing activities 265913636.34 262237506.95
Net cash flows from financing activities -261983349.40 192762493.05
4. Effect of foreign exchange rate changes on cash and cash
-50312.0311761.60
equivalents
5. Net increase in cash and cash equivalents -388803100.47 327289538.24
Add: Cash and cash equivalents at the beginning of period 558631758.10 231342219.86
6. Cash and cash equivalents at the end of period 169828657.63 558631758.10
Board of Directors of HARBIN BOSHI AUTOMATION CO. LTD.th
April 27 2024
65
