HARBIN BOSHI AUTOMATION CO., LTD. Semi-Annual Report 2025

（Abstract）Ⅰ. Important Notes

This Abstract is extracted from Semi-Annual Report 2025. In order to have a full understanding of theoperating results, financial condition and future development planning of the Company, investors are suggestedto read the full report carefully on the media designated by the China Securities Regulatory Commission (the“CSRC”). The Company’s 2025 Semi-Annual Report is prepared and published in Chinese version, and theEnglish version is for reference only. Should there be any inconsistency between the Chinese version andEnglish version, the Chinese version shall prevail.

All directors attended the Board Meeting in person for reviewing of this Semi-Annual Report.

Indicate by check mark if independent auditor issues non-standard unqualified opinion.

□Applicable √Not applicable

Indicate by check mark if there is a pre-arranged plan of profit distribution or transferring capital reserve intocommon stock for the report period which has been reviewed by the Board of Directors.

□Applicable √Not applicable

The Company does not plan to issue cash or equity dividends, nor to convert equity reserve into share capitalof the Company in the mid 2025.

Indicate by check mark if preplan for preferred stocks profit distribution to shareholders for the report periodwhich has been reviewed and approved by the Board of Directors.

□Applicable √Not applicable

II. Basic Situation of the Company

1. Company Profile

Stock AbbreviationBoshiStock Code002698Stock Exchange for StockListing

Shenzhen Stock Exchange

Contact Person and Contact

Information

Secretary of the Board Securities Affairs RepresentativeNameChen Bo Zhang JunhuiContact Address

9 Donghu Street, Concentration Zone ofYingbin Road, Harbin Development Zone

9 Donghu Street, Concentration Zone ofYingbin Road, Harbin Development ZoneFax+86-451-84367022 +86-451-84367022Tel+86-451-84367021 +86-451-84367021Emailir@boshi.cn zhangjh@boshi.cn

In order to enhance communication with investors and provide convenience for value investors, the Companyhas established the “Boshi Co., LTD. (East China) Investor Reception Center” at No. 18, Hongxin Road,Huaqiao Town, Kunshan City, Suzhou City, Jiangsu Province, Boshi (Suzhou) Intelligent Technology Co.,LTD. Welcome investors to inquire about the further information, Contact number: 0512-86896688.

2. Key Financial Data and Financial Indicators

Does the Company need to make retroactive adjustment or restatement of the accounting data of the previousyear.

□Yes √No

2025 H1 2024 H1

Increase/Decrease over the

same period of previous

year

Operating revenue (RMB)1,361,906,020.97

Increase/Decrease over the

1,451,943,421.69

-6.20%

Net profit attributable to shareholders of theparent company (RMB)

277,372,460.11

272,716,784.52

1.71%

Net profit after deducting non-recurringprofit or loss attributable to shareholders ofthe parent company (RMB)

260,151,376.46

256,725,397.00

1.33%

Net cash flow from operating activities (RMB

)

14,230,937.22

125,053,687.61

-88.62%

Basic earnings per share (RMB /share)

0.2732

0.2684

1.79%

Diluted earnings per share (RMB /share)

0.2714

0.2664

1.88%

Weighted average return on equity

7.05%

7.63%

-0.58%

End of the currentreporting period

End of previous year

Increase/Decrease overprevious year endTotal assets (RMB)6,785,360,220.82

6,955,348,945.64

-2.44%

Total equity attributable to shareholders of theparent company (RMB)

3,833,580,764.21

3,790,432,312.96

1.14%

3. Number of Shareholders and Shareholding

Unit: ShareTotal number of shareholders ofcommon stocks at the end of thereporting period

51,604

Total number of shareholders of

at the end of the reporting period

Top 10 shareholders(Excluding shares lent in refinancing)Name Nature

Ownership

Quantity ofstocks

Quantity of

restrictedstocks held

Quantity of

Pledged, marked orfrozen stocksStatus Quantity

Unicom-

Xinwo Venture Capital

Management (Shanghai) Co., Ltd. -

Xinwo Venture Capital

Lianchuang Weilai (Wuhan)

Lianchuang Weilai (Wuhan)Intelligent Manufacturing Industrial

Intelligent Manufacturing IndustrialInvestment Partnership (Limited

Partnership)

Others

11.26%

Investment Partnership (Limited

115,152,161

Not applicable

Deng Xijun Domestic natural person

9.41%

96,181,562

72,136,172

Not applicable

Zhang Yuchun Domestic natural person

8.09%

82,696,357

62,022,268

Not applicable

Wang Chungang Domestic natural person

5.61%

57,394,047

43,045,535

Not applicable

Cai Zhihong Domestic natural person

4.96%

50,677,029

Not applicable

Cai Hegao Domestic natural person

4.89%

50,000,000

Not applicable

Cheng Fang Domestic natural person

1.18%

12,085,796

Not applicable

Tan Jianxun Domestic natural person

1.13%

11,516,538

Not applicable

Li Xianglan Domestic natural person

1.05%

10,727,852

Not applicable

Liu Meixia Domestic natural person

1.04%

10,639,500

Not applicable

Shareholders holding more than 5%, the top 10 shareholders and the top 10 shareholders of unlimited tradableshares participate in the refinancing business to lend shares.

□Applicable √Not applicable

The top 10 shareholders and the top 10 shareholders of unlimited outstanding shares have changed from theprevious period due to refinancing lending/restitution reasons.

□Applicable √Not applicable

4. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period

□Applicable √Not applicable

The controlling shareholder did not change in the reporting period.

Change of the actual controller in the reporting period

□Applicable √Not applicable

The actual controller did not change in the reporting period.

5. Number of preference shareholders and shareholdings of top 10 of them

□Applicable √Not applicable

The Company had no preference shareholders in the reporting period.

6. Corporate bonds that existed on the date when this Report was authorized for issue

(1) Bond profile

Bond name Abbreviation

Bond code

Date of issue Maturity

Balance of facevalue at the endof reportingperiod(RMB’0,000)

Coupon rate

ConvertibleCorporate Bonds ofHarbin BoshiAutomation Co., Ltd.

BoshiConvertibleBonds

127072 Sep. 22

nd, 2022 Sep. 21

st

, 2028 44,982.97

styear 0.30%

nd year 0.50%

rd year 1.00%

th year 1.50%

th year 1.80%

th year 2.00%

(2) Financial indicators at the end of reporting period.

Item End of the current reporting period End of previous yearLiability /asset ratio 41.08%

43.20%

Item 2025 H1 2024 H1EBITDA interest cover (times) 36.13

40.48

(3) Top 10 convertible bond holders

NO.

Name Nature

Number ofconvertiblebonds heldat theperiod-end

Face value ofconvertible bondsheld at the period

end (RMB)

As % ofconvertible bondsheld at the periodend1 China Galaxy Securities Co. LTD

Domestic state-ownedcorporate

285,694

28,569,400.00

6.35%

First Capital Securities Co.,Ltd

Domestic state-ownedcorporate

275,370

27,537,000.00

6.12%

China Merchants Bank Co., LTD. -Huabao Convertible Bond BondSecurities Investment Fund

Others228,905

22,890,500.00

5.09%

China Merchants Bank Co., LTD. -Boshi CSI Convertible Bond andExchangeable Bond Exchange-TradedFund

Others204,042

20,404,200.00

4.54%

Guosen Securities Co., Ltd.

Domestic state-ownedcorporate

198,059

19,805,900.00

4.40%

Enterprise Annuity Plan of ChinaNational Petroleum Corporation -Industrial and Commercial Bank ofChina Limited

Others197,380

19,738,000.00

4.39%

Guotai Haitong Securities Co., LTD

Domestic state-ownedcorporate

180,000

18,000,000.00

4.00%

Southern Fund Ningkang ConvertibleBond Fixed Income Pension Product -Bank of China Limite

Others165,618

16,561,800.00

3.68%

People’s Insurance Company (Property)of China, LTD. - Self-owned funds

Others122,150

12,215,000.00

2.72%

Picc Asset Management - ChinaMerchants Bank - PICC Asset AnxinShengshi No. 31 Asset ManagementProduct

Others120,140

12,014,000.00

2.67%

III. Other Significant Events

Not applicable

IV. Management Discussion and Analysis

1. Company Main Businesses during the Reporting Period

(1) Industry overview during reporting period

①Industry overview

According to the proportion of revenue during the reporting period, the Company’s main businesses in itsindustry are shown in the following figure：

The Company aims to build a service-oriented manufacturing industrial system for long-term developmentwhose dual-core growth engine is driven by intelligent manufacturing equipment and industrial services, whichleverage the advantages of the equipment industry’s extension. These two sectors respectively align with thestate-supported industrial directions of high-end equipment manufacturing and modern service industries.During this reporting period, the intelligent manufacturing equipment and industrial services, these two coregrowth businesses, accounted for 97% of the operating revenue. Additionally, environmental protectionprocess contributes 3% of the operating revenue.

Intelligent Manufacturing Equipment：

As the main body of the national economy and the foundation of the powerful country, the intelligent upgradingof the manufacturing industry and the digital transformation of the industry has become one of the corestrategies of the national economic development. The current intelligent transformation of China’smanufacturing sector exhibits a dual-track parallel trend. On the one hand, the adoption rate of automationequipment in industrial enterprises of a certain scale is notably high. However, the number of digital factoriesthat have achieved equipment networking and data integration is relatively limited. Moreover, the proportionof smart factories capable of intelligent decision-making remains lower. Facing the future, there is hugepotential for digital transformation of the existing production capacity of these enterprises. On the other hand,strategic emerging industries, exemplified by new energy and new materials, incorporate smart factorystandards from the outset of construction, and the demand for intelligent manufacturing equipment keepsburgeoning. The intelligent upgrading of China’s manufacturing industry promotes the dual track of stocktransformation and new capacity demand, showing strong resilience and vitality, and the demand has not seenobvious periodicity.

The Company has been engaging in the field of intelligent equipment for a long time, with independentcontrollable core security of intelligent manufacturing equipment products, to help China’s manufacturingpromote quality and efficiency. Replacing imported equipment or industry-first applications to promote thetechnological progress of related industries with scientific and technological innovation. The Companyimplements a differentiated competitive strategy based on technology leadership. In terms of technologicalR&D, product innovation, advantages in large-scale system integration, industrial service capabilities,engineering implementation experience, and brand dependence, it has formed significant differences from itscompetitors and built a comprehensive competitive advantage. The Company’s intelligent manufacturingequipment are widely applied in petrochemical, sub-merged arc furnace, new energy, grain, animal feeds,building materials, medicine, food, port logistics, and many other industries, to provide customers withefficient intelligent manufacturing equipment, and promote the application and implementation of the overallsmart factory solution. In recent years, the State actively advocates the implementation of industrialdigitalization strategies. The Company has accelerated the accumulation application of digital and intelligenttechnologies mastered. In multiple product application fields, the Company now possesses full-stackapplication solution capabilities, forming a complete product matrix ranging from intelligent complete sets ofequipment, digital workshops to intelligent factories. In the major domestic product application fields, theCompany’s technology and intelligent equipment products are in a leading position, and there are nocompetitors of the same scale yet. The application scale of some of the product technologies has reached theworld’s leading level. In recent years, the Company’s intelligent manufacturing equipment business hasachieved sustained good and rapid development in terms of product innovation, application field expansion,revenue scale and profit level, and has brought good returns to shareholders.

Industrial Service：

In March of 2021, thirteen government departments, including the National Development and ReformCommission, the Ministry of Science and Technology, and the Ministry of Industry and InformationTechnology, collectively released the Opinions on Accelerating the High-quality Development of theManufacturing Service Industry. This document unequivocally positions the manufacturing service industryas a pivotal cornerstone in enhancing the competitiveness and overall strength of manufactured goods, therebyfacilitating the transformation and upgrade of the manufacturing sector and its journey towards high-qualitydevelopment. Manufacturing enterprises are accelerating their leap from traditional manufacturing to“manufacturing + services” and their transformation from single product delivery to “product + service”solutions by innovating business models, reconfiguring production organization systems, and increasing theproportion of service elements. Service-oriented manufacturing not only effectively extends the valuedimension of the equipment manufacturing industrial chain, but also significantly enhances the added valueand productivity of industrial service elements, injecting continuous impetus into the improvement of marketcompetitiveness.

Boshi has long been committed to the realm of intelligent manufacturing equipment, meticulously crafting acomprehensive production operation and maintenance management service system that spans the entirelifecycle of equipment products. This innovative approach empowers customers with integrated industrialservices encompassing equipment operation and maintenance, as well as finished product storage andtransportation. Consequently, clients can concentrate on their core competencies, thereby reducing costs,enhancing efficiency, and fostering high-quality development. The Company’s industrial service demands notonly have a steady growth driven by the natural increase of existing equipment, but also have a growth space

opened up through in-depth exploration of customer needs and continuous breakthroughs in new productionand operation and maintenance projects. The demand for industrial services is growing in both directions, andthe development momentum is moving towards each other. In the future, the scale and capacity of services areexpected to achieve a stepwise improvement. Based on continuous business innovation and industry-leadingservice delivery capabilities, the product and service integration strategy that has been implemented since theIPO initial fundraising in 2012 has achieved remarkable results. To date, a service network covering all regionsof the country except Hong Kong, Macao, Taiwan and Xizang has been formed, and the service scale andprofitability have remained among the top in the industry. In August of 2021, our Company was distinguishedas the “Advanced Manufacturing and Modern Service Industry Integration Development Pilot Unit” by theNational Development and Reform Commission. Subsequently, in January 2023, we were honored with thetitle of “Fourth Batch of Service-Oriented Manufacturing Demonstration Enterprise” by the Ministry ofIndustry and Information Technology. These dual national recognitions amply underscore our Company’spioneering and leading role in the realm of manufacturing and service industry integration.

Environmental Protection Process and Equipment:

“Lucid waters and lush mountains are invaluable treasures. A healthy ecological environment not onlyrepresents natural wealth but also signifies economic prosperity, influencing the potential and sustainability ofeconomic and social development.” The state has integrated green and low-carbon development into the corestrategy of high-quality development. In key areas such as deep treatment and recycling of industrial wastegas, the treatment and recycling project of industrial waste acid and acid gas implemented by BoaoEnvironment, the Company’s holding subsidiary, can collect and treat waste sulfuric acid and sour gas inindustrial production, generate high-purity sulfuric acid for recycling production, and recover and reuse theheat energy released in the process. This not only achieves energy saving and emission reduction but alsorecycling and economic efficiency, balancing environmental protection with economic benefits and socialbenefits.

②Industry policy impact

In the context of the in-depth promotion of the national strategy of “manufacturing power”, the policies ofintelligent manufacturing, digital economy and industrial digital transformation and upgrading continue torelease the momentum of development. During the 14

thFive-Year Plan period, the intensive introduction of anumber of national industrial policies has built a solid policy support system for the field of high-end intelligentmanufacturing equipment, enabling the development and industrial upgrading of enterprises in the industry inan all-round way from technological innovation, scene expansion to industrial ecological construction.

In the first half of 2025, the successive release of the National Intelligent Manufacturing Standard SystemConstruction Guidelines (2024 Edition) and the Reference Guidelines for Typical Scenarios of IntelligentManufacturing (2025 Edition) are important policies measure for China to promote new industrialization anddevelop new quality productive forces. Through the dual guidance of “standard unification” and “scenarioimplementation”, the two have jointly built the cornerstone of the national digital strategy path, aiming tocomprehensively enhance the standardization level of intelligent manufacturing, lead the manufacturingindustry to accelerate intelligent upgrading, and promote the construction of new industrialization. Therelevant series of policies present a clear technological development path and regulatory guidance, which is

conducive to accelerating the digitalization process of the national industry, driving the intelligentreconstruction of enterprise business processes, and accelerating the move towards an outstanding intelligentfactory. This is highly consistent with the strategic direction of the Company’s focus on developing intelligentmanufacturing equipment business.

th Five-Year Plan for the Development of the Digital Economy, 14

th

Five-Year Plan for the Development ofIntelligent Manufacturing, 14

th Five-Year Plan for the Development of the Robot Industry, 14

th

Five-Year Planfor the Deep Integration of Informatization and Industrialization, Implementation Plan for the “Robot Plus”Application Action, Opinions on Promoting the Innovative Development of Future Industries, Guidelines forthe Construction of the Standard System for Service-oriented Manufacturing, national strategies, industrialpolicies such as the Guidelines for the Comprehensive Standardization System Construction of the NationalArtificial Intelligence Industry (2024 Edition), Reference Guidelines for Typical Scenarios of IntelligentManufacturing (2024 Edition), Implementation Plan for the Gradient Cultivation Action of IntelligentFactories, Implementation Guidelines for the Digital Transformation of Manufacturing Enterprises, andAction Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods, as well asmeasures for maintaining growth and improving quality demand, investment promotion and consumptionpolicy measures provide continuous impetus for the Company’s technological iteration, market expansion andproduct innovation. The impact of the above-mentioned relevant policies can be found in the Company’s 2023and 2024 annual reports or specific industrial policy interpretations.

(2)Company Main Businesses during the Reporting Period

①Main products, industrial services and application level

In the field of post-processing high-end equipment forpowder and granular materials in China it has obviousadvantages and a stable competitive position. In the fieldof post-processing high-end equipment for the newenergy field irregular polysilicon materials, the originalfirst set of applications has promoted the upgrade ofintelligent manufacturing in the industry.

Complete product line, covering natural rubber andsynthetic rubber;It is the only supplier which can provide complete large-scale systems worldwide.

Overall Solution for Intelligent Manufacturing Equipment and Intelligent Factory

It is applied in the post-processing fields for the powder,granular materials or irregular materials ofpetrochemical, new energy, grain, animal feeds,building materials, medicine, food, ports, logistics etc.(In the new energy field, processes such as rod breaking,crushing, screening, bagging, automatic preciseweighing, boxing, and transportation of crystallinesilicon reduction rods.), providing efficient automaticweighing, packaging and palletizing intelligentmanufacturing and production equipment and overallsolutions of smart factories.

Post-processing Intelligent Manufacturing

Equipment for Solid Material

It is intelligent equipment and intelligent plant overallsolution, applied in production process of syntheticrubber and natural rubber and in the fields of productrefining process, dewatering and drying process(rubber washing, cleaning and impurity removal,dewatering, crushing and drying, etc.) and finishedproduct packaging process (weighing, baling, detecting,conveying, packaging and palletizing, etc.)

Robot Plus

Post-processing Intelligent Manufacturing

Equipment for Rubber

Intelligent Logistics, Warehousing Systems

(High temperature) Operation robot for submerged arcfurnace and serialized intelligent products, completesystem solutions are applied for high-risk as well asother special operation robots and complete systemsolutions which can replace high-risk, harsh workingconditions, and heavy manual labor.

Connecting solid material post-processing intelligentmanufacturing equipment with rubber post-processingintelligent manufacturing equipment to realizeintelligent identification, outbound and inboundwarehousing management, logistics transshipment,fully automatic vehicle loading, etc., which widely usedin many industries of national economy, to helpcustomers to build smart factory overall solutions.(High temperature) Operation robot for sub-merged arcfurnace and its surrounding systems are in leadingposition worldwide in the field of calcium carbide;The successful delivery of smart workshop projectdemonstration project in the field of calcium carbide arcfurnace production, committed to promoting theproduction of fewer people, unmanned, safe, efficientand environmental”, and bringing the traditionalindustrial technology revolution with industrysubversive technology.

Fully automatic loading machine has formed the firstmover advantage of the scale of application, the marketresponded positively, the future demand in many fieldsand industries has great potential

②Business model

The business model of large-scale intelligent manufacturing equipment is driven by sales, productionorganization, product delivery and acceptance, revenue recognition and other links, as shown in the followingfigure:

Industrial Services

The industrial services, extended from in the above-mentioned related fields of intelligent manufacturingequipment, are mainly integrated service, equipment maintenance and spare parts sales which facingthe operation in the application fields of intelligent manufacturing equipment, after-sales industrialservice, and supplementary industrial service.

Adhering to the Company’s technological leadership in the field of intelligent equipment, leading service

capabilities and scale in the field

The content characteristics of the operation and maintenance aftermarket and complementary industrialservices business models are summarized in the figure below:

Industrial Services——Operation and After-sales Type Industrial Services

By participating in bidding or negotiating bids, the Company signs integrated service, equipment maintenanceservice agreements with customers (which may include FFS film rolls sales matching with production services),equipment maintenance, operation maintenance and the like to determine the contents and modes of services;For the performance obligations of the service contract performed within a certain period of time, the Companyshall recognize the revenue according to the performance progress within the period of time;The sales mode of spare parts is flexible (the Company initiates stocking or the customer initiates procurement),and the operating revenue is confirmed based on the actual delivery of the product and the time when the revenueconfirmation conditions are met

FFS Film roll production enterprise matchingwith industrial services (Nanjing Green NewMaterial Co., Ltd., Company’s holding subsidiary)separately sells FFS film rolls, plastic auxiliariesand the like apart from the Company’sproduction and operation services;Other kinds with small revenue are not classifiedas material.Revenue recognition: Usually as per the contractsigned with customer, implement the contractand meet the revenue conditions, then confirmthe operating revenue.

Industrial Services——Supplementary Industrial Services and Miscellaneous

The following environmental protection process equipment business is a useful complement to the Company’sintelligent manufacturing equipment and industrial services, two of the Company’s core growth businesses.

Energy saving, emission reduction and environmental protection process

equipment field

Harbin Boao Environmental Technology Co., Ltd is currently mainly engaged in the design, production, andsales of energy-saving, emission-reduction and environmental protection process equipment which isrepresented by industrial waste acid regeneration process and equipment. Industrial waste acidregeneration technology and equipment collect and process industrial waste sulfuric acid and sulfur-containing acid gas which are produced in the customer’s chemical production to generate high-puritysulfuric acid for recycling production, and release heat energy for recycling and reusing, realizing the effectsof energy saving and emission-reduction, recycling uses, economy and environment protection and help toachieve carbon peak and carbon neutral emission reduction targets.

Realizing the effects of energy saving and emission-reduction, recycling uses, economy

and environment protection.

Industrial waste sulfuric acid, sulfur-containing acid gas

Collection → Catalysis → Heat

High-purity sulfuric acid used forrecycling production

③Develop new quality productivity to serve the national digitalization strategy.

As the outcome of revolutionary technological breakthroughs and innovative allocation of production factors,new quality productivity is reshaping the competitive landscape of the global intelligent equipment industry,promoting the evolution of China’s industry from traditional manufacturing to intelligent manufacturing, andgiving rise to changes in the industrial ecosystem. In the application field of intelligent manufacturingequipment products, the Company has achieved the ability and breakthrough to leap from single machine andautomated production lines to digital workshops and overall solutions for intelligent factories, deeply servingthe national digitalization strategy, industrial upgrading and the demand for cultivating future industries.

Following the successful implementation and delivery of two calcium carbide intelligent factory (workshop)projects in 2024, on April 24

th

, 2025, the Company held the “Intelligent Start of a New Journey, IntelligentWin of the Future: Calcium Carbide Intelligent Factory - Digital Transformation and Practical ApplicationConference” in the city of Wuhai, known as the “Pearl of the Yellow River”. Many industry leaders, expertsand enterprise representatives attending the conference jointly explored new paths for the digital and intelligenttransformation of the calcium carbide industry, aiming to inject new impetus into the green and sustainabledevelopment of the industry. During the on-site visit to the Company’s calcium carbide intelligent factory forcustomers, the production site of the intelligent factory was orderly and the equipment operated efficiently andprecisely. The participants witnessed together the huge changes brought about by digital technology to calciumcarbide production. The Company’s overall intelligent factory solution for calcium carbide production hasbeen fully recognized and positively responded to by the attending customers. In the future, it is expected todrive more potential customers to join the path of digital transformation and intelligent transformation,achieving green and sustainable development.

Legend: Calcium carbide intelligent factory –the scene of the Digital Transformation and Practical Application Conference

The intelligent factory for calcium carbide production has comprehensively revolutionized the traditionalproduction process of calcium carbide electric furnaces, solving the industry’s pain points such asenvironmental harm, high energy consumption, heavy pollution and low production efficiency. The Companyintegrates artificial intelligence technologies such as machine vision, deep learning, robot control algorithms,and expert control strategies with industrial Internet communication technologies, and applies them to theoverall solutions of intelligent workshops and intelligent factories. This has overturned the traditionalproduction process of calcium carbide electric furnaces, built an intelligent closed loop of “perception -decision-making - execution”, and significantly improved production safety and operational efficiency. Realizeprecise control throughout the entire process and efficient intelligent production, and unlock the futuremanufacturing model.

④Key performance drivers

During the reporting period, although the environmental protection process and equipment business, whichserves as a beneficial supplement to the performance, achieved a decrease of RMB 150 million in operatingrevenue compared to the same period of the previous year, the Company’s two core growth businesses,“intelligent equipment” and “industrial Services”, realized operating revenue increase by 5.30% and 3.38%respectively year-on-year, contributing the majority of the Company’s RMB 277 million net profit attributableto the parent company. It is the main factor driving the Company’s performance and the year-on-year growth

of net profit attributable to the parent company by 1.71%. In the intelligent manufacturing equipment business,the intelligent manufacturing equipment for solid material post-treatment achieved a revenue of RMB 785million, representing a year-on-year growth of 8.60%. The revenue of this sub-business reached the best levelof half year in history, and its gross profit margin also reached an outstanding 41.91%, demonstrating theCompany’s core competitiveness.

The Company has long been committed to the innovation and development of intelligent manufacturingequipment, to achieve domestic equipment instead of imports and the independent control of major equipmentcore technology. With the technology leading differentiation competitive strategy, The Company emphasizesR&D investment and product innovation, continues to open up new markets and guides market demand. TheCompany’s solid core technical capabilities, rich industrial application practical experience, “point → line →whole” efficient technology development path, and focus on high-tech barriers to R&D positioning, constitutethe main and important internal driving factor for the company's sustained and healthy development and theformation of core competitiveness. At the same time, the promotion and implementation of medium and long-term strategic plans such as China’s intelligent manufacturing 2025 and 2035, the intensive introduction ofindustrial promotion policies such as intelligent manufacturing, robotics and digital economy, and the stronginternal demand of manufacturing enterprises for automation, digitalization and intelligent manufacturing haveprovided a strong external environment for the high-quality development of the Company.

In recent years, the Company achieved outstanding results in technology leadership strategy, large systemcomplete strategy, product service integration strategy. In the application field of the Company’s products, thecontinuous improvement of the Company’s overall solution capability of intelligent manufacturing, theimplementation of smart factories, and the collaborative contribution of “intelligent equipment” + “industrialservices” have consolidated the Company’s core competitive strength and achieved good and rapiddevelopment of business performance. The main business that is highly compatible with the developmentdirection of China’s intelligent manufacturing will continue to contribute to the growth momentum of theCompany.

2. Core Competitiveness Analysis

As an enterprise with product innovation as its core driving force, the Company adheres to a differentiatedcompetitive strategy of leading technology. With a deep understanding of the development trend of China’sindustrial automation and more than 20 years of industrial practice, the Company has built a coordinateddevelopment business pattern of intelligent manufacturing equipment and industrial service, environmentalprotection technology and equipment beneficial supplement, and formed a core competitiveness system of“technology– product – service – ecology”. In recent years, the Company’s business scale has grown rapidly,and its profitability has been greatly improved. Through continuous strengthening of digital and intelligenttechnology R&D and application investment, the Company has formed a complete product matrix covering“single equipment - complete production line - smart factory”, creating a global service capability, and itscomprehensive competitiveness has continued to improve in the development of the industry.

(1) Technology - Technology leadership forge core competitiveness.

①Leadership in product innovation capabilities driven by technology.

Innovation is the core driving force for the development of science and technology enterprises, and technologyleadership is the key to the Company’s core competitiveness. The Company closely focuses on the needs ofChina’s intelligent manufacturing industry, continues to increase R&D investment, accurately graspdevelopment opportunities, actively expand market application fields, and constantly improve productinnovation capabilities and application levels. With unremitting efforts, the Company continues to consolidateits technological lead and ranks at the forefront of the industry competition for a long time.

In terms of intelligent manufacturing equipment product line, the Company’s products have significanttechnical advantages of high speed, high precision and high reliability, and accurately focus on the high-endintelligent manufacturing equipment market to meet customers’ stringent requirements for efficient, safe andfine production. In the field of intelligent manufacturing overall solutions, the Company deeply integratesartificial intelligence technologies such as machine vision, deep learning, and robot control algorithms to createmulti-category innovative product solutions and build digital and intelligent production scenarios forcustomers. The Company has successfully realized the overall intelligent manufacturing solutions such as solidmaterial post-processing, electric stone furnace smelting operation intelligent workshop, helping customersrealize the digital transformation and intelligent manufacturing upgrade of the factory, promoting thesynchronous improvement of production efficiency and quality, and realizing intelligent manufacturing. In thedomestic application field of the main products, the Company’s products and technologies have long been inthe leading position in China, reaching the international advanced level, and the application scale of someproducts has reached the international leading level.

② Master innovation and application capabilities driven by underlying technologies.

Mastering underlying technologies, algorithms and application platform technologies is the key for theCompany to achieve independent control of core technologies, and it is also the core technical path toimplement a technology-leading differentiated competition strategy and enhance competitiveness. Taking theCompany’s technological accumulation in the “robot plus” field as an example, with its in-depth control overthe underlying technologies, the Company can quickly apply its technical capabilities in the field of specialoperation robots for high-temperature environments to the solutions of digital workshops and smart factories,forming a core competitiveness that promotes the digital transformation of industries.

Legend：Development platform for mobile robot system based on autonomous navigation

Legend：Robot motion control system

Legend：R&D platform of AI system based on artificial intelligence

③Systematized innovation and integrated R&D capability through “point → line → whole” path.

Throughout the Company’s technology, product development and industrialization process, the Companyenters new industries and new fields, usually with key single unit equipment (“point”) as the entry point; Afterbreaking through the technical problems that have long restricted the development of the industry and solvingthe key pain points of the industry, the Company rapidly expanded the key single unit equipment to theautomated production line (“line”) to achieve vertical innovation of products; With the accumulation oftechnology and the in-depth understanding of the industry, the Company further builds the overall solution ofintelligent manufacturing (“whole”) to form an integrated technology and product capability. Taking the high-temperature special operation robots for smelting in submerged arc furnaces as an example, the Company, inresponse to the safety production and manual replacement demands of traditional calcium carbide submergedarc furnaces, has successfully developed a calcium carbide (high-temperature) furnace front operation robot(“point”) based on industrial robot technology, which has the significance of revolutionizing manual operations.Subsequently, the Company successively developed key production operation systems such as the calciumcarbide ramming furnace robot, inspection robot, and key production operation systems including intelligentpot transfer technology (“line”), and ultimately formed an epoch-making overall solution for intelligentworkshops (“whole”). This “point → line → whole” systematized innovation and integrated R&D capabilityhelps the Company concentrate technology, capital and resources, reduce product development risks, improvethe output efficiency of R&D investment, open the ceiling of growth with new products, new fields, newapplications and new markets, and enhance the Company’s core competitiveness.

④Technology migration and cross-industry application capability.

The Company can achieve the horizontal expansion of product application by “redevelopment” and “re-application” the technological breakthroughs and accumulations in a certain field across industries. Forexample, the Company will be based on the technical breakthrough and technology accumulation in thedirection of special operation robots in the high-temperature working environment of calcium carbide, for thehorizontal redevelopment of a variety of high-temperature working environment of ferrosilicon,silicomanganese, industrial silicon, etc., has achieved phased application results, and signed product orders

successively. The Company’s technological transfer and cross-industry application capabilities in the fields oftechnology and product innovation help accelerate the enhancement of its core competitiveness.

Legend：The product atlas of special operation robot in high temperature environment

⑤Patents, software copyrights and proprietary technologies continue to support product innovationcapabilities.

During the reporting period, the Company obtained 26 patents approved by the State Intellectual PropertyOffice, including 13 invention patents and 13 utility model patents; 12 software copyrights were approved bythe National Copyright Administration. In addition to patent technology, the Company has a considerableamount of core technical know-how that exists in the form of proprietary technology by relying onconfidentiality measures. The patents, proprietary technology and software copyright owned and mastered bythe Company are important carriers of its core competitiveness. (Note: The amount of intellectual propertyacquired during the reporting period may have a slight deviation due to the limitation of statistical time points,and is only for investors’ trend reference. Investors are urged to pay special attention to relevant risk factors.)

(2) Product - A multi-category product matrix to establish market competitive advantage.

①A multi-category product matrix builds core competitiveness.

The Company’s intelligent manufacturing equipment covers overall solutions for intelligent manufacturing inthe post-treatment of solid materials, (high-temperature) “robots plus” and overall solutions, post-processingintelligent manufacturing equipment for rubber, and intelligent logistics and warehousing systems. It alsosupplements with environmental protection process technologies and complete sets of equipment. TheCompany’s high-speed, high-precision, high-performance and highly reliable multi-category products arewidely used in numerous industries and fields such as petrochemical and chemical engineering, electric arcfurnaces, new energy, grain, feed, building materials, medicine, food, ports and logistics. The multi-categoryproduct matrix for the segmented markets within each industry is shown in the following figure.

Legend: Product matrix diagram

②Intelligent workshop, intelligent factory, overall solution present substantial market opportunities.

The Company applies artificial intelligence technologies such as machine vision, deep learning, robot controlalgorithm, and expert control strategy, combined with industrial Internet communication technology, to theoverall solution of intelligent factory/workshop, maximize the realization of minimal or unmanned operationin production scenarios. Customers rely on intelligent production decision-making management to achievesafe, reliable and refined production and improve overall operational efficiency.

Legend：Calcium carbide production intelligent workshop to achieve few people, unmanned production operations

From the calcium carbide post-processing intelligent factory/workshop project delivered to customers by theCompany, in the application side, the customer has realized the replacement of manual work under dangerousand heavy working conditions with high-tech products, innovated the traditional process method, andimproved the safety and well-being of workers, which is of great significance to the calcium carbide industry;At the product sales end, compared with the sales of single machine products (“point”) and complete sets ofequipment (“line”), the overall solution for intelligent factories (“whole”) has the potential to bring about amultiple increase in market space and contract value due to its strong product competitiveness and limitedmarket competition pressure. This “whole” - the ability of the overall solution for smart factories - determinesthe core competitiveness of the Company in future market competition.

(3) Service – Integrated service capabilities to enhance competitive advantage.

The Company will closely combine the technology leading advantage in intelligent equipment and the scaleadvantage of product application with industrial services, and actively promote the implementation of theintegration strategy of products and services. The Company’s industrial services, covering consulting, spareparts sales, equipment transportation, inspection, maintenance and transformation, production operation andmaintenance management and other full-scene application forms, has now covered all regions except HongKong, Macao, Taiwan, Xizang, service scale and capacity are industry-leading. The Company’s serviceintegration strategy provides customers with multi-dimensional, high-quality equipment operation supportservices and production operation and maintenance integrated solutions, helping customers focus on the mainbusiness, to achieve continuous, stable and efficient production. The Company’s professional, high-quality andadvanced service model has become the preferred choice for customers to improve quality and efficiency in acomplex industrial production environment, creating value for customers and achieving a win-win situation.The mutual promotion and benign interaction between intelligent equipment and industrial services has formed

a good synergy effect and promoted the high-quality development of the Company’s business.

Legend: The coordinated development and positive interaction of intelligent equipment and industrial services

Industrial service revenue can steadily increase with the growth of intelligent equipment product sales andcustomer production and operation equipment base, the Company to undertake large-scale productionoperation and maintenance service projects will also bring a step wise increase in service revenue. Thiscoordinated development model of services and products not only enhances customer stickiness but alsoeffectively offsets the negative fluctuations in the intelligent equipment business, improves the Company’soverall risk resistance capacity in operation, and forms a core competitiveness.

(4) Ecology - The industrial ecological results stabilize the core competitiveness.

①Leading competitiveness in the industry driven by advanced technology.

In the core business areas of intelligent manufacturing equipment and industrial services, relying on its coretechnological capabilities and product innovation capabilities, the Company develop and apply intelligentequipment products with market competitiveness, enhance the dimension of industrial services, andcontinuously consolidate its competitive advantage position. The Company’s main products, technologies andapplication scale led the domestic related application fields in a long time period, and have won many industryhonors, and has built an industrial ecosystem where customers, suppliers, social value, enterprise value andother multiple dimensions coexist, co-prosper, win together, develop healthily and sustainably.

②Brand competitiveness to enhance customer loyalty.

The Company establishes brand with quality, promotes progress with technology, and wins trust with service.Through high-quality products and efficient industrial services, the Company strives to achieve productionautomation, digital and intelligent manufacturing for customers. The Company enjoys continuous leadingvisibility, reputation and customer loyalty in the main product application fields in China as well as pursuesexcellence, leads the development of intelligent manufacturing equipment in the application industry, andbuilds a stable, cooperative and win-win customer base in the long term. High-quality customer resources andhuge demand potential for intelligent manufacturing equipment are the foundation and fertile soil for theCompany’s long-term, sustained and rapid development.

③Improving the quality and efficiency of intelligent manufacturing equipment, to promote thesustainable development of social green and low-carbon economy.

To transform traditional industries with high and new technology is the duty, mission and responsibilityentrusted to innovative science and technology enterprises by the era. The Company’s overall solution forintelligent manufacturing in the field of calcium carbide smelting in mineral furnace can be widely used inintelligent manufacturing equipment such as automatic loading logistics system in many industries, which hasa transformative impact on replacing the field of manual production under high-risk and heavy workingconditions, and has become the basis for customers to achieve safe, efficient and refined production. At thesame time, the standardization of intelligent equipment will bring about the improvement of capacity utilization,help to achieve cost reduction and efficiency, and support the early achievement of the national double carbongoal.

The Company actively cultivates and develops new quality productivity. Through technological breakthroughs,product innovations and the continuous application of new technologies in the direction of large-scaleintelligent manufacturing equipment and intelligent factories, it has achieved the automation and intelligenceof process industry production, promoting the improvement of social production efficiency. The client applies

the Company’s intelligent manufacturing equipment to produce in an intensive manner, reducing reliance onlabor. This effectively alleviates the structural labor shortage problem in society, enhances the safety and well-being of workers, and promotes the progress and development of social civilization. The continuous expansionof the company's intelligent equipment products and industrial service application scale has promoted thesustainable development of the green and low-carbon economy in society. It not only achieved good socialbenefits but also enhanced customer satisfaction and loyalty through the cost reduction and efficiencyimprovement results of customers, thereby promoting the stable development of the Company’s operatingperformance and the good performance of shareholder returns.

3. Main Businesses Analysis

Overview

In the 2025 H1, the state adopted a more proactive fiscal policy and a moderately loose monetary policy,introduced supportive policies to boost consumption and investment, and comprehensively expanded domesticdemand. The domestic macro-economy presented an overall stable and progressive development trend. In thefirst half of the year, the gross domestic product (GDP) reached RMB 66 trillion, increasing by 5.3% year-on-year, laying a solid foundation for the economic growth throughout the year.

During the reporting period, the Company achieved operating revenue of RMB1.362 billion, net profitattributable to shareholders of RMB 277 million, and a weighted average return on equity (ROE) of 7.05%.From the perspective of business composition, the Company’s core growth businesses, intelligentmanufacturing equipment and industrial services, achieved revenues of RMB 952 million and RMB 371million respectively, increasing by 5.30% and 3.38% year-on-year. The two businesses accounted for 69.88%and 27.24% of the Company’s total revenue respectively. The proportions of the Company’s overall grossprofit were 77.47% and 18.07% respectively. The environmental protection process and equipment business,as a beneficial supplement, achieved a revenue of RMB 39 million, accounting for 2.88% of the Company’stotal revenue and 4.46% of its gross profit.

The Company’s intelligent manufacturing equipment products are widely applied in pillar industries of thenational economy such as petrochemicals and chemical engineering, new energy, arc furnaces, grain, feed,building materials, medicine, food, ports, and logistics. During the reporting period, the Company’s marketingwork continued to make positive progress. As a leading enterprise in the application fields of the Company’sproducts, the long-term demand for quality improvement and upgrading in automation, digitalization andintelligent manufacturing is promising, providing a good platform and space for the Company’s medium andlong-term sustainable and healthy development.

From the perspective of revenue and profit composition, the structure of revenue and contribution gross profitof the Company’s intelligent manufacturing equipment, industrial services, environmental protectiontechnology and equipment is shown in the following figure.

Operating revenue Gross profit(RMB 0.1 billion) (RMB 0.1 billion)

Note: in the above figure, Contributing Gross profit= Operating revenue of corresponding business – Operating cost, the contributiongross profit does not consider the impact of profit and loss of minority shareholders.

During the reporting period, the main operating data and main financial indicators realized by the Companyare listed as follows

Unit：RMB

Item 2025H1 2024H1 Year-on-year growth

Operating revenue 1,361,906,020.971,451,943,421.69-6.20%

Operating profit 325,918,599.95337,649,585.25-3.47%

Total profit 325,558,005.49337,709,578.78-3.60%

Net profit 286,552,860.48292,701,791.18-2.10%

There of: Attributable to shareholders of the

parent company

277,372,460.11272,716,784.521.71%

Year-on-year changes to major financial data

Unit: RMB

2025H1 2024H1

Increase/Decrease

of previous year

RationaleOperating revenue1,361,906,020.97

over the same period

1,451,943,421.69

-6.20%

Cost of sales848,278,273.31

965,112,696.34

-12.11%

Selling anddistribution expenses

59,500,518.45

66,433,203.00

-10.44%

General andadministrativeexpenses

57,346,796.33

47,254,478.23

21.36%

Finance expenses10,310,006.30

1,647,186.17

525.92%

Jointly influenced by interestexpenses increased and interestincome decreased.Income tax expenses

39,005,145.01

45,007,787.60

-13.34%

Research and

70,190,031.07

development expenses

54,512,534.74

28.76%

Share-based payment led to anincrease in R&D expenses year-on-year.Net cash flows fromoperating activities

14,230,937.22

125,053,687.61

-88.62%

Affected by

the reduction in software

the reduction in softwareVAT refunds received, as well as the

VAT refunds received, as well as theincrease in various taxes and fees paid

increase in various taxes and fees paidand cash paid for purchasing goods

during this period.Net cash flows frominvesting activities

958,322,159.35

and cash paid for purchasing goods

56,462,233.83

1,597.28%

Mainly due to the impact of cash

management activities.Net cash flows fromfinancing activities

-256,001,030.55

-358,426,518.17

28.58%

Mainly due to share buyback in the

last period.Net increase in cashand cash equivalents

716,871,196.84

-176,908,280.41

505.22%

It is jointly affected by the net cash

It is jointly affected by the net cashflow from operating activities,

flow from operating activities,investing activities and financing

activities.

Major changes to the profit structure or sources of the Company in the reporting period:

□ Applicable √ Not applicable

No such cases in the reporting period.

Breakdown of operating revenue:

Unit: RMB

2025H1 2024H1 Increase/Decrease

over the sameperiod of previousyearAmount

Proportion ofrevenue

Amount

Proportion ofrevenueTotal1,361,906,020.97

100%

1,451,943,421.69

100%

-6.20%

Categorized by industryIntelligent manufacturingequipment

951,645,232.63

69.88%

903,781,292.42

62.25%

5.30%

Industrial service370,926,692.60

27.24%

358,816,558.08

24.71%

3.38%

Environmental protection process

and equipment

39,334,095.74

2.88%

189,345,571.19

13.04%

-79.23%

Categorized by productPost-processing intelligentmanufacturing equipment forsolid material

785,182,652.20

57.65%

723,016,009.70

49.80%

8.60%

Post-processing intelligentmanufacturing equipment forrubber

123,742,635.23

9.09%

30,472,291.84

2.10%

306.08%

Robots plus21,327,691.29

1.57%

132,974,452.81

9.16%

-83.96%

Intelligent logistics, warehousingsystems

21,392,253.91

1.57%

17,318,538.07

1.19%

23.52%

Operation, maintenance andafter-sales type industrialservices

328,880,442.12

24.15%

314,570,836.80

21.66%

4.55%

Supplementary industrialservices and others

42,046,250.48

3.09%

44,245,721.28

3.05%

-4.97%

Environmental process andcomplete equipment

39,334,095.74

2.88%

189,345,571.19

13.04%

-79.23%

Categorized by regionRegion of east China666,637,448.23

48.94%

438,191,938.28

30.17%

52.13%

Region of south China71,717,421.39

5.27%

60,773,887.95

4.19%

18.01%

Region of central China41,115,127.26

3.02%

86,665,287.81

5.97%

-52.56%

Region of north China196,520,869.96

14.43%

381,367,261.55

26.27%

-48.47%

Region of northwest China248,601,124.03

18.25%

303,855,685.33

20.93%

-18.18%

Region of southwest China49,805,267.30

3.66%

48,213,414.19

3.32%

3.30%

Region of northeast China69,134,760.52

5.08%

110,494,567.37

7.61%

-37.43%

Overseas18,374,002.28

1.35%

22,381,379.21

1.54%

-17.90%

Industries, products, or regions accounting for more than 10% of company revenue or operating profit

Unit: RMB

Operatingrevenue

Cost of sales Gross profit rate

Operatingrevenueincrease/decrease overthe same periodof previous year

Cost of salesincreased ordecreased overthe same periodof previous year

Gross profit

rate

increased ordecreased overthe same periodof previous year

rate

Categorized by industryIntelligent manufacturingequipment

951,645,232.63

553,757,165.96

41.81%

5.30%

-3.20%

5.11%

Industrial service370,926,692.60

278,119,154.84

25.02%

3.38%

8.98%

-3.86%

Environmental protectionprocess and equipment

39,334,095.74

16,401,952.51

58.30%

-79.23%

-88.10%

31.10%

Categorized by productPost-processing intelligentmanufacturing equipment forsolid material

785,182,652.20

456,128,759.83

41.91%

8.60%

1.64%

3.98%

Post-processing intelligentmanufacturing equipment forrubber

123,742,635.23

65,544,349.19

47.03%

306.08%

305.79%

0.04%

Robots plus21,327,691.29

17,365,362.04

18.58%

-83.96%

-81.49%

-10.86%

Intelligent logistics,warehousing systems

21,392,253.91

14,718,694.90

31.20%

23.52%

10.39%

8.19%

Operation, maintenance andafter-sales type industrialservices

328,880,442.12

241,167,571.39

26.67%

4.55%

12.04%

-4.91%

Supplementary industrialservices and others

42,046,250.48

36,951,583.45

12.12%

-4.97%

-7.53%

2.43%

Environmental process andcomplete equipment

39,334,095.74

16,401,952.51

58.30%

-79.23%

-88.10%

31.10%

Categorized by regionRegion of east China666,637,448.23

373,755,970.31

43.93%

52.13%

28.53%

10.29%

Region of south China71,717,421.39

68,374,243.01

4.66%

18.01%

59.69%

-24.89%

Region of central China41,115,127.26

31,512,325.59

23.36%

-52.56%

-45.79%

-9.57%

Region of north China196,520,869.96

110,347,159.11

43.85%

-48.47%

-56.72%

10.71%

Region of northwest China248,601,124.03

180,967,139.92

27.21%

-18.18%

-10.92%

-5.93%

Region of southwest China49,805,267.30

32,964,516.23

33.81%

3.30%

5.03%

-1.09%

Region of northeast China69,134,760.52

40,298,178.53

41.71%

-37.43%

-42.52%

5.16%

Overseas18,374,002.28

10,058,740.61

45.26%

-17.90%

-26.85%

6.70%

Note: Due to changes in accounting policies, the cost of sales for the same period of last year have beenretrospectively adjusted.

Where the Company’s statistical criteria for core business data are adjusted during the reporting period, thecore business data for the most recent year have been adjusted based on the statistical criteria effective as ofthe 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 revenue of intelligent manufacturing equipment reached RMB 952 million,with a year-on-year growth of 5.30%. Industrial services achieved a revenue of RMB 371 million, with a year-on-year growth of 3.38%, and continued to maintain a steady growth momentum. The revenue fromenvironmental protection processes and equipment reached RMB 39 million, a year-on-year decrease of

79.23%.

Intelligent manufacturing equipment:

The post-processing intelligent manufacturing equipment for solid material achieved a revenue of 785 million,with a year-on-year growth of 8.60%. The gross profit rate was 41.91%, an increase of 3.98% compared withthe same period of last year. The outstanding gross profit rate of the Company’s core products in intelligentmanufacturing equipment is attributed to the increase in the proportion of leading products with high grossprofit rate in the revenue of the current period, demonstrating the Company’s core competitiveness.

The post-processing intelligent manufacturing equipment for rubber was centrally delivered this period,achieving a revenue of RMB 124 million, a year-on-year increase of 306.08%, with a gross profit rate of

47.03%. The gross profit rate increased slightly year-on-year, maintaining an excellent level.

The revenue recognition level for the delivery of intelligent logistics and warehousing systems and “robot plus”products in this period were relatively low. Among them, the gross profit rate of intelligent logistics andwarehousing systems increased by 8.19% year-on-year to 31.20%. The “robot plus” category mainly include(high temperature) operation robot for sub-merged arc furnace, inspection robots, and other “robot plus”products. The overall delivery in this period was relatively small and the profit level of this period was low.The Company is actively promoting and expanding in intelligent calcium carbide factory, and the future isworth looking forward to.

Industrial services: During the reporting period, industrial services achieved operating revenue of RMB 371million, with a year-on-year growth of 3.38%. As one of the Company’s core growth businesses, industrialservices have maintained a long-term and steady growth. Due to the negative fluctuations in revenue settlementlevels and costs, the overall gross profit rate of industrial services declined by 3.86% year-on-year to 25.02%.Among them, the revenue from operation, maintenance and after-sales industrial services reached RMB 329million, increasing by 4.55% year-on-year, while the gross profit rate decreased by 4.91% to 26.67% year-on-year. The revenue from supplementary industrial services and others was RMB 42 million, a decrease of 4.97%compared with the same period. The gross profit rate increased by 2.43% to 12.12%.

Environmental protection technology and equipment: Compared with the same period of the previous year, noequipment or know-how packages of environmental protection technology and equipment were accepted anddelivered in this period. The revenue decreased by 79.23% year-on-year to RMB 39 million, and the grossprofit rate increased significantly to 58.30%, which was a beneficial supplement to the Company’s overallperformance.

From the region perspective, based on the Company’s business model, the operating revenue usually variesfrom period to period, which is mainly affected by demand fluctuations from region to region and structuralchanges of product demand, as well as Company response demands, completion of product delivery andacceptance progress, etc. It is not a typical fluctuation of gross profit rate divided by region, please refer toexplanation of operating revenue and gross profit rate changes for details.

4. Analysis of Non-Core Businesses

□Applicable √Not applicable

5. Analysis of Assets and Liabilities

(1) Significant Changes in Asset Composition

Unit: RMB

End of current reporting period

End of previous year

Increase/Decrease inproportion

Major changesAmount

Proportion oftotal asset

Amount

Proportion oftotal assetCash at bank and onhand

770,277,016.91

11.35%

55,996,398.59

0.81%

10.54%

Mainly due to impacts on cashmanagement activities.Accounts receivable

1,198,354,788.82

17.66%

1,201,119,619.90

17.27%

0.39%

Contract assets183,711,499.99

2.71%

156,905,007.88

2.26%

0.45%

Inventories2,087,902,326.57

30.77%

2,072,436,762.83

29.80%

0.97%

Investment properties

9,129,139.12

0.13%

11,072,140.54

0.16%

-0.03%

Long-term equityinvestments

529,582,435.01

7.80%

523,324,767.86

7.52%

0.28%

Fixed assets364,028,135.42

5.36%

362,897,699.40

5.22%

0.14%

Construction inprogress

14,372,900.38

0.21%

2,023,251.20

0.03%

0.18%

The Company’s real estatepurchased for industrialservice business.Right-of-use assets2,729,734.07

0.04%

4,223,259.80

0.06%

-0.02%

Short-term loans33,788,585.72

0.50%

36,873,798.71

0.53%

-0.03%

Contract liabilities1,639,630,342.52

24.16%

1,806,791,270.47

25.98%

-1.82%

(2) Major Assets Overseas

□Applicable √Not applicable

(3) Assets and liabilities measured at fair value

√Applicable □Not applicable

Unit: RMB

Item Opening balance

Profit or lossfrom changein fair valueduring theperiod

Cumulative fair

value changecharged toequity

Amountprovidedforimpairm

Cumulative fairent in the

period

ent in the

Purchased in the

period

Sold in the

period

Other changes

Closing balance

Financialassets

Financial assetheld fortrading(excludingderivativefinancial )）

1,934,953,566.81

5,094,741.50

5,078,619,000.00

6,029,714,210.35

988,953,097.96

Investments inother equityinstruments

61,002,054.39

33,974,208.57

61,002,054.39

Financingreceivables

53,851,796.67

25,756,395.72

79,608,192.39

Sub-total ofthe above

2,049,807,417.87

5,094,741.50

33,974,208.57

5,078,619,000.00

6,029,714,210.35

25,756,395.72

1,129,563,344.74

Financialliabilities

Note: the financial asset held for trading above-mentioned mainly are monetary fund and structuralbank deposits, for cash management of temporarily unused self-owned and raised funds, based on 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 duringthe reporting period

□ Yes √ No

(4)Restricted asset rights as of the end of this Reporting Period

Item

Book value at the endof period（RMB）

Limitation reasonCash at bank and on hand

Bank deposit on letter of guarantee.

Cash at bank and on hand

7,300.00

Minimum deposit of ETC toll bank account.

Cash at bank and on hand

325,071.94

Litigation and judicial freeze due to sales contract disputes

Intangible assets 4,225,091.01

Mortgage of holding subsidiary land use right for bank loans.

Fixed assets11,446,074.23

Mortgage of holding subsidiary real estate for bank loans.

Total17,547,331.01

6. Investment Made

(1) Total investment amount

√Applicable □Not applicable

Total investment amount of theReporting Period (RMB)

Total investment amount of the sameperiod of last year (RMB)

Change

529,582,435.01

490,225,600.66

8.03%

The above investments are equity investments of the Company’s ending balance in associated or joint venturecompanies.

(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

① Securities investments

□Applicable √Not applicable

No such cases in the reporting period.

② Derivatives investments

□Applicable √Not applicable

No such cases in the reporting period.

(5) Use of Raised Funds

① Overall usage of funds raised

Unit: RMB10,000

Year

Way ofraising

Net fundsraised

Totalfundsused inthecurrentperiod

Accumulativefundused

Totalfundswithusagechangedthisperiod

Accumulativefundswithusagechanged

Proportion ofaccumulativefundswithusagechanged

Totalunusedfunds

The usage anddestination ofunused funds

Amountof fundsraisedidle forover twoyears

2022

Issue convertible

corporate bondsto unspecifiedobjects

44,341.86

Note

Issue convertible

2,239.11

38,676.30

0.00%

5,665.56

The Company shall

funds not yet used.

Total

-- 44,341.86

2,239.11

38,676.30

0.00%

5,665.56

-- 0

Explanation of overall usage of funds raisedAs of June 30

th

, 2025, net funds raised was RMB 443.4186 million, the raised fund used is a total amount of RMB 386.763 million, and the raised fundshas not used of RMB56.6556million. In addition, RMB 9.6701 million of the accumulated interest and cash management income of the special accountfor raised funds, after deducting handling fees, was managed as raised funds and was unused.

Note：Total fund raised is the net amount after deducting issuance expenses.

② Commitment projects of fund raised

Unit: RMB10,000

Committed investment project and super raise

fund arrangement

Total ofcommittedinvestmentof raised

capital

Totalinvestment

aftermodification

(1)

Investmentamount

in thereporti

ngperiod

Accumulati

veinvestmentamount as

of theperiod-end

(2)

Investmentschedule asthe period-

end (3)＝

(2)/(1)

Date of reachingintended use of theproject

1. Robot and intelligent factory industrialization

production project.

16,000.00

16,000.00

1,638.34

14,322.85

89.52%

July,2024

2. Sub-merged arc furnace smelting robot and its

intelligent factory R & D demonstration project.

9,000.00

9,000.00

512.90

7,226.16

80.29%

June,2025

3.Project of technology innovation and service

center (R&D center)

7,000.00

7,000.00

87.88

4,785.43

68.36%

December,2023

4.Supplementary working capital 12,341.86

12,341.86

--

12,341.86

100.00%

Not applicableTotal 44,341.86

44,341.86

2,239.11

38,676.30

-- --

(6) Collaborative R&D and other related investments progress

①Cooperative R&D project: Humanoid robot key technology and principle prototype industrializationR&D project

On August 18

th, 2023, the Company signed the Strategic Cooperation Framework Agreement with HGDUniversity, jointly establishing a R&D project for the industrialization of key technologies and principleprototypes of humanoid robots, and promoting the industrialization of related technological achievements andproducts. The R&D project plan to focus on breaking through key technologies such as the design of bionicmotion structure mechanisms, achieving high explosive force and smooth drive, intelligent perception andnavigation planning in complex scenes, full-body coordinated movement, human-like dexterous operation,highly adaptable dynamic balance control, and high-power-density batteries.

The project’s R&D goals have relatively high requirements for the robot’s movement ability, operational abilityand intelligence level. Up to now, during the process of debugging the principle prototype, the overall machinescheme is optimizing, the structure and performance of key components are continuously optimizing andimproving, and the performance of corresponding components are testing. Carrying out verification work suchas dexterous operation, stable walking, impact resistance and rough terrain tests of the robot’s dual-arm hands.The project is simultaneously conducting algorithm optimization and verification work for natural voiceinteraction, long sequence motion planning, and navigation planning. The project is planned to display 1-2principle prototypes of humanoid robots in 2025 Q4. The actual progress of the project’s R&D will be takenas the standard at that time.

Risk Warning: Investors are advised to pay special attention to the risk factors related to theindustrialization R&D project of key technologies and principle prototypes of humanoid robots. Pleaserefer to page 43 for details.

②Investment in high-end medical diagnosis and treatment equipment

Surgical system (endoscopic instrument control system with instruments and accessories): As of the end of thereporting period, the Company held a 13.46% stake in Harbin Sagerot Intelligent Medical Equipment Co., Ltd,an investment and equity participation enterprise. Its core product is the Kangduo Surgical Robots ?(laparoscopic surgical robot). The three products of Kangduo Surgical Robots ?, namely SR1000, SR1500and SR2000, were respectively granted the Class III Medical Device registration certificates issued by theNational Medical Products Administration in June 2022, April 2024 and July 2024. Endoscopic surgical robotsare usually composed of a “doctor’s console”, a “patient’s surgical platform” and an “imaging system”. Doctorscan operate (remotely) the control console, obtain the surgical field of view with the help of the endoscope

held by the mechanical arm on the “patient surgical platform”, and complete the surgical operation at the sametime by using the surgical instruments held by the mechanical arm (such as needle driver, curved scissors,disposable ultrasound soft tissue scalpel, bipolar Forceps and cautery hook, etc.) Invasive abdominal surgeryrobots are suitable for various types of surgeries in various fields, such as urology, gynecologic, general surgery,thoracic surgery, etc. They have the advantages of small trauma, precise surgical operation, few postoperativecomplications, and the ability to complete surgeries remotely from different locations with the help of 5Gcommunication technology. These advantages not only help to boost patients’ confidence, shorten the recoverytime, but also reduce the surgical intensity of doctors and give full play to the greater benefits of medicalresources.

Legend: Celiac minimally invasive surgical robot

Image-guided radiotherapy precise positioning: As of the end of the reporting period, the company held a

13.65% equity stake in Jiangsu Rayer Medical Technology Co., Ltd., an enterprise in which it has investedand participated. Rayer Medical obtained the medical Device registration certificate for image-guidedRadiotherapy Positioning System (IGPS) issued by the former China Food and Drug Administration in March2016. In February 2020, it obtained the medical device registration certificate for Optical Guidance TrackingSystem (OGTS) issued by the National Medical Products Administration. In September 2024, we obtained themedical device registration certificate for the X-ray stereotactic radiotherapy system (RayerKnife) issued bythe National Medical Products Administration. The X-ray stereotactic radiotherapy system (RayerKnife) isused for stereotactic radiotherapy of tumors or other lesions throughout the body that are suitable forradiotherapy. The RayerKnife system adopts a number of innovative technologies, including a miniaturizedX-band 6MV linear accelerator, a three-imaging unit X-ray image guidance system, an optical-guided motiontracking system, a robot precision motion control system, a six-degree-of-freedom treatment bed, andautomatic optimization of treatment plans. It provides multi-field, non-coplanar and non-isocentric irradiationmodes in a large spherical space. Through image guidance and robot motion control throughout the treatmentprocess, it realizes the compensation treatment of positioning errors in static target areas and the synchronoustracking treatment of moving target areas in the chest and abdomen. This system is the only one of its kind inChina. While breaking the monopoly of imports, it has achieved multiple breakthroughs and innovations in

technological applications, providing patients with more advanced options for radiosurgical treatment.

Legend：Image-guided radiotherapy precise positioning

Remote assisted minimally invasive pedicle implantation robot: the remote assisted minimally invasive pedicleimplantation robot project of Suzhou Zoezen Robot Co., Ltd., invested and participated by the wholly-ownedsubsidiary of the Company, at the end of reporting period, the Company holds 5.56% of its equity. The mainR&D product of the project, navigation and positioning equipment for spinal surgery has obtained medicaldevice registration certificate issued by the State Drug Administration in February, 2022.

Legend：Remote assisted minimally invasive pedicle implantation robot

The field of high-end medical diagnosis and treatment equipment project is characterized by long R&Dcycle, high barriers to enter, long product registration cycle, and big clinical risks. There are many riskfactors 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.

③Progress of the robot equity investment fund

In 2015, the Company participated in the establishment of Dongguan Boshi Ruidexin Robot Equity InvestmentFund, and established Dongguan Boshi Ruidexin Robot Equity Investment Center (limited partnership). Thecapital contributed of Boshi was RMB 60 million, accounting for 30% of the subscribed investment of thefund. By the end of the reporting period, Boshi had received about RMB 73 million of project investmentreturns and profit distribution, the earnings are good.

④The Progress of enterprises invested by the Company in declaring to IPO

Harbin Sagerot Intelligent Medical Equipment Co., Ltd, which is invested by the Company, currently has aregistered capital of RMB 150 million, the Company holds 13.46% of its equity and is a non-controllingshareholder. In June 2023, the application for initial public offering of shares and listing on the science andtechnology innovation board was approved by the Listing Review Committee of the Shanghai Stock Exchange,The project is currently in the registration stage with the China Securities Regulatory Commission, and it needsto be registered with the China Securities Regulatory Commission before it can start the follow-up work of theIPO.

7. Sale of Major Assets and Equity Interests

(1) Sale of major assets

□Applicable √Not applicable

(2) Sale of major equity interests

□Applicable √Not applicable

8. Analysis of Major Subsidiaries and Participating Company

√Applicable □Not applicable

The situation of major subsidiaries and equity participation companies that have an impact of more than 10%on the Company’s net profit.

Unit: RMB

Name

Companytype

Mainbusiness

Registeredcapital

Total asset Equity Revenue

Operatingprofit

Net profit

ShanghaiBloomTechnology Co., Ltd.

Equityparticipationcompany

Providingsolutionsforpowderandgranularmaterialhandlingsystemscenteredonpneumaticconveying

66,670,000 5,622,430,486.11 2,623,057,415.42 725,214,525.08 282,656,182.73 244,248,854.54

Note: The financial data of Bloom Technology in the above table is provided by Bloom Technology as of thedate of the notice of the Company’s board meeting. There may be differences between this data and the datadisclosed in Bloom Technology’s semi-annual report. The 2025 semi-annual report disclosed by Bloom

Technology shall prevail. The relevant differences do not have a significant impact on the Company’s mainfinancial data.

The situation of acquiring and disposing of subsidiaries during the reporting period.

□Applicable √Not applicable

9. Structured Bodies Controlled by the Company

□Applicable √Not applicable

10. Risks Facing by the Company and Countermeasures

(1) The risk that “robot plus” and China intelligent equipment demand are less than expected.

In 2025, the state will adopt a more proactive fiscal policy and a moderately easy monetary policy, as well asintroduce supportive policies to promote consumption and investment, with the aim of comprehensivelyexpanding domestic demand and promoting sustained economic recovery and improvement, in order toactively respond to internal economic pressure and external shocks represented by tariff wars. From a globalperspective, the current global economic landscape is confronted with numerous challenges. The impact oftariff wars persists for a long time, the process of globalization is hindered, trade protection barriers are high,and the world’s geopolitical and economic crises are continuous. The growth momentum of the world economyand trade is insufficient. External factors have been transmitted and superimposed, exerting an impact on thedomestic market, and there is an urgent need to stimulate domestic demand. The Company’s intelligentequipment products are primarily utilized in the basic raw materials industry. Demand for these products isgenerally not significantly influenced by short-term macroeconomic fluctuations. However, in the long term,if external demand—such as that driven by investment and consumption—fails to be effectively stimulated,sustained declines in customers’ product prices may ultimately dampen the willingness of clients in the basicraw materials industry to invest in and upgrade their facilities. This, in turn, could reduce demand for high-endintelligent manufacturing equipment, thereby constraining the Company’s medium- to long-term performanceand representing one of the key risk factors currently facing the Company.

Solutions: As a leading enterprise in the field of domestic product application, the Company has long beendeeply engaged in the product direction of intelligent manufacturing equipment, continued to lead thepopularity, reputation and customer loyalty, and built a stable, cooperative and win-win cooperate networkwith customers for a long time. With continuous digital and intelligent upgrade needs, The Company’s maincustomers are leading enterprises in the industry, which can provide sufficient space for the future developmentof the Company. The Company is actively implementing intelligent workshop, intelligent factory overallsolution application, which can open product application space, and provide a broad space for the Company.The Company increases investment in R&D, guides customer demand with continuous technologicalinnovation, transforms traditional industries with vibrant products, opens up new opportunities, and deals withrisk factors.

(2) The risks that the R&D of intelligent manufacturing equipment and the process of industrialdigitalization are less than expected.

The Company has the ability to provide customers with overall solutions for intelligent manufacturing andintelligent factories in the main product application fields of large-scale intelligent complete sets of equipment.As China advances from a major manufacturing country to a powerful one, the demand for the transformationof digital workshops and intelligent factories continues to grow. According to the “14

thFive-Year Plan” forthe Development of Intelligent Manufacturing, in the coming period, intelligent manufacturing will focus onprocesses, equipment and data, relying on carriers such as manufacturing units, workshops, factories andsupply chains, to promote the digital transformation, networked collaboration and intelligent transformationof the manufacturing industry. By 2025, most of the manufacturing enterprises above designated size will haveachieved digitalization and networking, and the backbone enterprises in key industries will have initiallyapplied intelligence. By 2035, digitalization and networking will be fully popularized among manufacturingenterprises above designated size, and key enterprises in major industries will basically achieve intelligence.Facing the huge market demand prospects of industrial digitalization, if the Company fails to promptly expandinto new technological application fields or fails to effectively respond to, guide and meet market demands inproduct development, and the process of industrial digitalization falls short of expectations, it may miss out onmarket dividends, which will have an adverse impact on the Company’s medium and long-term developmentand become one of the risk factors the Company is confronted with.

Solutions: First of all, the initiation of R&D project, the Company should choose projects with large marketdemand as well as can be copied. Meanwhile the Company has technical advantages in the R&D field, the riskis small. After the success of R&D, the market space of copy and promotion is large. Secondly, the selectionareas of R&D project, the Company should choose areas with industry pain points and high technical difficulty,after key technology breakthroughs, the technical advantage is expanded from “point” to “line” to establishfirst-mover advantage. Then, expand to the “whole”, in the process of forming the overall solution of intelligentmanufacturing, for the non-key supporting technologies that are mature in the market, the Company makesoptimal use of social resources, which is conducive to the Company to concentrate resources on the R&D ofcore technologies and accelerate the launch of product solutions. For mature non-critical supportingtechnologies in the market, the Company does not rule out the possibility of leveraging social resources toaccelerate the launch of product solutions. Meanwhile, the Company has established standardized modules forits product solutions in intelligent manufacturing and factory digitalization, which is conducive to thereplication and promotion of product technologies among different customers and industries, accelerating theindustrialization process and effectively addressing related risk factors.

(3) The risk that artificial intelligence technology cannot be deeply applied in the Company’s overallsolution of intelligent manufacturing.

With the rapid development of digital infrastructure such as 5G and industrial Internet, the field of intelligentmanufacturing is embracing unprecedented opportunities. Artificial intelligence technology not only providestechnical convenience for the digitalization and intelligence of factories, but also determines the depth andlevel of future intelligent manufacturing. Although the Company has a prominent competitive edge in the fieldof product application, in the face of the industrial trend of artificial intelligence technology, if the Companyfails to deeply integrate and apply artificial intelligence technology based on 5G and industrial Internet in thetechnical solutions of intelligent manufacturing products, it will restrict the speed and quality of the Company’s

medium and long-term development, and constitute one of the risk factors.

Solutions: Enterprises above the designated size of China’s manufacturing industry generally have automatedproduction lines, but low level in the proportion of digitalization, little factory data sharing, and few use ofintelligent technology. The development of intelligent manufacturing in China still has a big gap comparedwith the United States, Japan and Germany, and the overall development space of the industry is broad. Basedon years of technical accumulation and rich product line application advantages, in the main productapplication practices, the Company will integrate the application, accumulation and iteration of artificialintelligence technology based on 5G and industrial Internet in the overall solution of intelligent manufacturing.At the level of product R&D, the Company focuses on accelerating the application depth of artificialintelligence technology in the digitalization and intelligence of manufacturing industry, accumulates projectexperience, establishes technical reserves, accumulates competitive advantages, and copes with risk factors.

(4) The risk that industrial services expand less than expected.

The industrial service business, as a booster for the Company’s performance growth and a buffer zone forfluctuations in equipment revenue, has been developing steadily and sustainably over the long term. From theperspective of the revenue scale of the production and operation and maintenance business in the Company’sindustrial services, compared with the huge potential demand for production capacity in China, its marketpenetration rate is still at a relatively low level, and there is huge room for future development. However, ifthe company fails to continuously expand its industrial service business and adapt to the multi-level servicedemands of customers, it will constitute one of the risk factors restricting the company's medium and long-term development.Solutions: The Company has implemented the service integration strategy for a long time, this coincides withthe direction of the national service-oriented manufacturing industry. The Company has established industrialservice team covering all provinces, regions and municipalities in the country except Hong Kong, Macao,Taiwan and Xizang over the years, forms timely response and national industrial service capacity, andcontribute to profit. Industrial services are rooted in intelligent manufacturing equipment, industrial serviceand intelligent manufacturing equipment benign interacted and common developed. With the expansion of theCompany’s intelligent manufacturing equipment application stock, the demand for the Company’s industrialservices continues to grow, effectively promoting the development of industrial service business. In the faceof the industrial opportunities of the integration of national advanced manufacturing industry and modernservice industry, the Company has enough market opportunities and motivation to accelerate development andactively cope with risk factors.

(5) The risk that “robot plus” development opportunities cannot expanded industrial directionseffectively

As early as 2005, the Company’s industrial robots with independent intellectual property rights had beensuccessfully applied at customer sites. The company has continuously applied industrial robot perception andcontrol technologies to large-scale intelligent complete sets of equipment. In the fields it is engaged in, it hasmaintained a leading technological edge for a long time. In recent years, the company has achieved remarkableresults in the R&D, application and industrialization of high-temperature special operation robots in the fieldof calcium carbide electric furnaces. It has successfully implemented and completed two demonstrationapplication projects of overall solutions for calcium carbide intelligent factories (workshops). The Company’s

concurrent research and development of special operation robots for high-temperature environments such asferrosilicon, ferromanganese and industrial silicon submerged arc furnaces has achieved positive results oneafter another. In the future, if the company fails to make continuous progress in the “robot plus” field, replicateand implement the intelligent calcium carbide factory, and accelerate the promotion of technologicalachievements in new fields to expand the market, it will constitute one of the risk factors affecting theCompany’s medium and long-term competitiveness.

Solutions: The Company’s two demonstration projects of intelligent factories (workshops) for calcium carbideproduction in the “robot plus” direction have been successfully delivered and put into operation, marking amajor transformative breakthrough in this field for the Company. In April 2025, the Company held the CalciumCarbide Smart Factory — Digital Transformation and Practical Application Conference for customers in thecalcium carbide industry, actively promoting it in the industry with the aim of generating future growth.“Robots are the jewels on the crown of manufacturing.” The Company will continue to combine itstechnological advantages, product application experience and market demands in this field, taking the high-temperature special operation environment of electric furnaces such as calcium carbide, ferrosilicon,fermanganese silicon and industrial silicon as the main direction, accelerate R&D and application, overcomeadverse external environmental factors, seize opportunities and deal with risk factors.

(6)The risk that the progress of the industrialization R&D project of key technologies and principleprototypes of humanoid robots is less than expected.

In the new round of scientific and technological revolution and industrial change to accelerate the evolution ofmajor cutting-edge technologies, disruptive technologies continue to emerge, in order to accelerate thedevelopment of new quality productivity, combined with the Company’s advantages in intelligentmanufacturing equipment, high temperature special operation robots and smart factories and other productapplications. On August 18

th, 2023, the Company signed a Strategic Cooperation Framework Agreement withHGD to jointly establish a humanoid robot key technology and principle prototype industrialization R&Dproject, and jointly promote the relevant technological achievements and future industrialization work. Thefuture industry of humanoid robots is driven by cutting-edge technologies, and the relevant R&Dindustrialization investment is inevitably accompanied by greater risks. The field of humanoid robots, differentfrom the Company’s intelligent manufacturing equipment, high-temperature furnace operation robots andother industrial fields, is a new, cutting-edge, highly challenging field of technological innovation, therefore,so there is uncertainty risk factor; In cooperation with HGD, the Company has complementary advantages,multi-disciplinary crossover and multi-department participation, which is systematic, complex, phased andlong-term. Whether and when the expected results can be achieved in R&D is highly uncertain, whichconstitutes one of the risk factors; During the R&D process of the project, the technological progress anditeration in the field of humanoid robots at home and abroad are rapid. There is a great deal of uncertainty asto whether the prototype of the R&D principle is advanced, which constitutes one of the risk factors. Even ifthere are expected R&D results, there is great uncertainty about whether industrialization can be smoothlycarried out in the future, whether industrialization has comprehensive advantages, and whether it can quicklyobtain market share, which constitutes one of the risk factors. If the first-generation principle prototype islaunched in the future, it will inevitably face a continuous process of R&D and iteration. Whether thesubsequent R&D can be smoothly implemented and the project still have great uncertainty, which constitutesone of the risk factors. One of the risk factors is that the principle prototype developed may not be advancedor have industrialization advantages and thus cannot be industrialized. 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 thetransformation of future 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. Ifthere are key technologies yet to be improved in the industry as a whole, it will affect the R&D progress orindustrialization process and constitute one of the risk factors. Considering the above risks, it is inevitable thatin the implementation process of humanoid robot projects, there are still other unforeseen risk factors, whichconstitute one of the risk factors that the company needs to face.Solutions: Over the years, the Company is one of the early industrial robot engineering applications in China,has formed a prominent competitiveness in the field of intelligent manufacturing equipment, high temperaturespecial operation robots, and formed a good industrial foundation in “robot plus”. For the cooperation withHGD in the direction of humanoid robots, the Company actively creates a good atmosphere of cooperation.Both parties have the same goal, and the personnel of both parties form a joint force to overcome difficulties;The Company fully evaluates the difficulties of R&D and future industrialization according to the progress ofthe project and phased results, and controls the investment of funds in stages and reduce R&D inputs risk. TheCompany strives to improve performance and returns, promotes related work in a positive and orderly manner,and deals with risk factors.

(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 canmaintain a high level of sustainable profitability and the effective implementation of the Company’sdifferentiated competitive strategy. The Company attaches great importance to technology confidentiality byapplying for intellectual property protection, strengthening legal rights protection, and protecting thetechnology security of enterprises and preventing related risks through technical means. Nevertheless, thereare still intellectual property rights owned by the Company illegally stolen, and other risks of unfaircompetition, which may cause potential economic losses to the Company.

Solutions: The Company’s technology is divided into patented technology and proprietary technology, fromthe characteristics of technical confidentiality, each has its own applicable environment. In addition to thetraditional technology confidentiality and anti-improper competition means, the Company, by means oftechnology R&D and innovation, continues to enhance technology reserve to keep one generation of R&D,one generation of reserve and one generation of sales, to maintain the absolute competitive advantage in thedomestic main product application field. Therefore, through continuous technological innovation, continuingto consolidate and establishing technical advantages are the primary strategy for the Company to deal withtechnology confidentiality and face unfair competition.

The aforementioned risk factors are of concern to the Company, which actively implements measures toeffectively mitigate and manage these risks.

VI. Financial statements

(1) Consolidated Balance Sheet

Prepared by HARBIN BOSHI AUTOMATION CO., LTD. Unit: RMB

Item Ending balance Beginning balanceCurrent assets:

Cash at bank and on hand770,277,016.91

55,996,398.59

Financial assets held for trading988,953,097.96

1,934,953,566.81

Derivative financial assets

Bills receivable175,573,025.96

197,170,155.60

Accounts receivable1,198,354,788.82

1,201,119,619.90

Financing receivables79,608,192.39

53,851,796.67

Prepayments112,539,101.36

69,344,997.81

Other receivables38,188,984.39

36,340,345.23

Thereof: Interest receivable

Dividend receivable7,199,820.00

8,360,557.32

Financial assets purchased under resale agreements

Inventories2,087,902,326.57

2,072,436,762.83

Contract assets183,711,499.99

156,905,007.88

Assets held for sale

Non-current assets due within one year5,003,479.19

8,666,821.13

Other current assets19,755,625.52

20,661,815.01

Total current assets5,659,867,139.06

5,807,447,287.46

Non-current assets:

Debt investments

Other debt investments

Long-term receivables14,460,571.52

12,520,693.35

Long-term equity investments529,582,435.01

523,324,767.86

Other equity instruments investments61,002,054.39

61,002,054.39

Other non-current financial assets

Investment properties9,129,139.12

11,072,140.54

Fixed assets364,028,135.42

362,897,699.40

Construction in progress14,372,900.38

2,023,251.20

Productive biological assets

Oil and gas assets

Right-of-use assets2,729,734.07

4,223,259.80

Intangible assets52,099,263.02

54,090,016.00

Goodwill401,878.10

401,878.10

Long-term deferred expenses59,773.56

75,344.58

Deferred tax assets54,088,815.12

44,266,405.83

Other non-current assets23,538,382.05

72,004,147.13

Total non-current assets1,125,493,081.76

1,147,901,658.18

Total assets6,785,360,220.82

6,955,348,945.64

Current liabilities:

Short-term loans33,788,585.72

36,873,798.71

Financial liabilities held for trading

Derivative financial liabilities

Bills payable

Accounts payable255,386,226.02

287,672,496.07

Advances from customers

96,750.00

Contract liabilities1,639,630,342.52

1,806,791,270.47

Employee benefits payable20,858,210.94

77,703,338.35

Taxes payable42,576,532.48

45,232,724.27

Other payables54,474,178.57

54,407,824.55

Thereof: Interest payable

Dividend payable4,900,000.00

4,900,000.00

Liabilities held for sale

Non-current liabilities due within one year5,007,561.57

3,296,253.38

Other current liabilities128,682,189.86

126,947,921.74

Total current liabilities2,180,403,827.68

2,439,022,377.54

Non-current liabilities:

Long-term loans

Bonds payable454,765,623.33

447,585,593.01

Thereof: Preference shares

Perpetual debts

Lease liabilities327,987.26

752,611.54

Long-term payable

Long-term employee benefits payable

Provisions4,482,290.98

9,906,258.47

Deferred income21,498,000.00

1,340,000.00

Deferred tax liabilities19,647,549.12

17,190,937.90

Other non-current liabilities106,291,538.01

88,916,685.57

Total non-current liabilities607,012,988.70

565,692,086.49

Total liabilities2,787,416,816.38

3,004,714,464.03

Shareholders’ equity：

Share capital1,022,560,873.00

1,022,559,197.00

Other equity instruments27,206,208.04

32,093,192.04

Thereof: Preference shares

Perpetual debts

Capital reserve357,605,995.80

333,197,886.86

Less: treasury shares41,777,510.20

41,777,510.20

Other comprehensive income29,261,494.41

28,344,422.67

Specific reserve28,429,379.37

27,453,042.66

Surplus reserve397,185,756.08

397,185,756.08

General risk reserve

Retained earnings2,013,108,567.71

1,991,376,325.85

Total equity attributable to shareholders of the parent company

3,833,580,764.21

3,790,432,312.96

Minority shareholder equity164,362,640.23

160,202,168.65

Total shareholders’ equity3,997,943,404.44

3,950,634,481.61

Total liabilities and shareholders’ equity6,785,360,220.82

6,955,348,945.64

Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua

(2) Balance Sheet of Parent Company

Unit: RMB

Item Ending balance Beginning balanceCurrent assets:

Cash at bank and on hand651,337,465.45

35,616,101.82

Financial assets held for trading921,250,500.31

1,728,098,242.83

Derivative financial assets

Bills receivable142,340,067.79

174,084,553.66

Accounts receivable1,116,099,802.47

1,120,697,848.74

Financing receivables67,211,900.79

44,527,080.67

Prepayments98,453,213.72

69,728,931.68

Other receivables38,454,273.59

36,036,592.13

Thereof: Interest receivable

Dividend receivable12,299,820.00

13,460,557.32

Inventories1,868,639,473.48

1,858,098,626.70

Contract assets166,637,614.82

128,266,570.20

Assets held for sale

Non-current assets due within one year5,003,479.19

8,666,821.13

Other current assets6,155,169.23

10,424,684.77

Total current assets5,081,582,960.84

5,214,246,054.33

Non-current assets:

Debt investments

Other debt investments

Long-term receivables14,460,571.52

12,520,693.35

Long-term equity investments881,028,136.33

874,385,703.48

Other equity instruments investments24,721,374.39

24,721,374.39

Other non-current financial assets

Investment properties5,331,352.20

5,484,683.52

Fixed assets181,581,176.87

183,813,531.57

Construction in progress14,372,900.38

19,591.16

Productive biological assets

Oil and gas assets

Right-of-use assets

Intangible assets39,715,512.88

40,251,223.26

Goodwill

Long-term deferred expenses59,773.56

75,344.58

Deferred tax assets44,819,132.23

35,462,835.42

Other non-current assets21,441,117.54

66,968,189.25

Total non-current assets1,227,531,047.90

1,243,703,169.98

Total assets6,309,114,008.74

6,457,949,224.31

Current liabilities:

Short-term loans

8,780,890.70

Financial liabilities held for trading

Derivative financial liabilities

Bills payable

Accounts payable404,275,126.14

453,120,039.20

Advances from customers

Contract liabilities1,497,921,570.43

1,622,034,410.01

Employee benefits payable16,368,738.65

56,654,254.53

Taxes payable39,482,691.20

40,961,222.14

Other payables52,829,311.32

52,483,457.80

Thereof: Interest payable

Dividend payable

Liabilities held for sale

Non-current liabilities due within one year3,475,396.60

1,244,805.36

Other current liabilities126,689,529.17

114,287,802.04

Total current liabilities2,141,042,363.51

2,349,566,881.78

Non-current liabilities:

Long-term loans

Bonds payable454,765,623.33

447,585,593.01

Thereof: Preference shares

Perpetual debts

Lease liabilities

Long-term payable

Long-term employee benefits payable

Provisions2,955,431.59

8,122,017.23

Deferred income21,498,000.00

1,340,000.00

Deferred tax liabilities10,047,661.57

9,450,676.43

Other non-current liabilities90,627,738.00

66,671,927.93

Total non-current liabilities579,894,454.49

533,170,214.60

Total liabilities2,720,936,818.00

2,882,737,096.38

Shareholders’ equity：

Share capital1,022,560,873.00

1,022,559,197.00

Other equity instruments27,206,208.04

32,093,192.04

Thereof: Preference shares

Perpetual debts

Capital reserve355,803,984.97

331,606,192.68

Less: treasury shares41,777,510.20

41,777,510.20

Other comprehensive income6,530,205.51

5,613,133.77

Specific reserve21,471,712.52

22,026,982.37

Surplus reserve397,185,756.08

397,185,756.08

Retained earnings1,799,195,960.82

1,805,905,184.19

Total shareholders’ equity3,588,177,190.74

3,575,212,127.93

Total liabilities and shareholders’ equity6,309,114,008.74

6,457,949,224.31

(3) Consolidated Income Statement

Unit: RMBItem Current period Last period

1. Total revenue

1,361,906,020.97

1,451,943,421.69

Thereof : Operating revenue1,361,906,020.97

1,451,943,421.69

2. Total cost

1,059,353,053.65

1,145,749,202.56

Thereof : cost of sales848,278,273.31

965,112,696.34

Taxes and surcharges13,727,428.19

10,789,104.08

Selling and distribution expenses59,500,518.45

66,433,203.00

General and administrative expenses57,346,796.33

47,254,478.23

Research and development expenses70,190,031.07

54,512,534.74

Financial expenses10,310,006.30

1,647,186.17

Thereof : Interest expenses9,893,461.58

6,661,373.59

Interest income1,167,267.77

5,834,915.69

Add: Other income16,969,893.49

54,159,699.69

Investment income ("-" for losses)22,715,561.64

-7,492,725.79

Thereof: Income from investment in associates and jointventures

11,525,414.05

-13,336,744.73

Gain from derecognition of financial assets measured atamortized cost

Exchange income (Loss is listed with “-”)

Net exposure hedging gains ("-" for losses)

Gains from changes in fair value ("-" for losses)5,094,741.50

6,433,663.01

Credit impairment losses ("-" for losses)-13,743,781.12

-15,530,274.10

Impairment losses ("-" for losses)-8,236,461.47

-5,598,610.61

Gains from assets disposal ("-" for losses)565,678.59

-516,386.08

3. Operating profit ("-" for losses)

325,918,599.95

337,649,585.25

Add: Non-operating income25,382.27

85,673.06

Less: Non-operating expenses385,976.73

25,679.53

4. Profit before income tax ("-" for losses)

325,558,005.49

337,709,578.78

Less: Income tax expenses39,005,145.01

45,007,787.60

5. Net profit for the year ("-" for net losses)

286,552,860.48

292,701,791.18

(1) Classification according to operation continuity

Net profit from continuing operations(loss is stated with “-”)286,552,860.48

292,701,791.18

Net profit from discontinued operations(loss is stated with “-”)

(2) Classified by ownership of the equity

Attributable to shareholders of the parent c

with “-”)

277,372,460.11

272,716,784.52

Minority interests(loss is stated with “-”)9,180,400.37

19,985,006.66

6. Other comprehensive income, net of tax

917,071.74

7,146,913.56

Other comprehensive income attributable to shareholders of theParent Company, net of tax

917,071.74

7,146,913.56

(1) Other comprehensive income items which will not be

reclassified subsequently to profit or loss

7,378,686.01

1) Changes arising from re-measurement of definedbenefit plan

2) Other comprehensive income that will not betransferred subsequently to profit or loss under the equity method

3) Changes in the fair value of the investment in otherequity instruments

7,378,686.01

4)Changes in the fair value of the Company’s own creditrisk

5)Others

(2) Other comprehensive income items which will be

reclassified subsequently to profit or loss

917,071.74

-231,772.45

1) Other comprehensive income that will be transferredsubsequently to profit or loss under the equity method

917,071.74

-231,772.45

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 offoreign currency financial statements

7)Others

net of tax

7. Total comprehensive income

287,469,932.22

299,848,704.74

Attributable to shareholders of the parent company278,289,531.85

279,863,698.08

Minority interests9,180,400.37

19,985,006.66

8. Earnings per share

(1) Basic earnings per share

0.2732

0.2684

(2) Diluted earnings per share

0.2714

0.2664

Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua

(4)Income Statement of Parent Company

Unit: RMBItem Current period Last period

1. Total revenue

1,208,214,259.80

1,170,740,856.70

Less: cost of sales773,863,242.40

824,950,377.19

Taxes and surcharges11,385,062.35

7,652,514.08

Selling and distribution expenses57,227,066.61

61,294,783.29

General and administrative expenses40,423,162.36

32,648,895.79

Research and development expenses55,479,430.97

42,657,698.39

Financial expenses9,888,148.70

4,494,569.19

Thereof : Interest expenses9,436,343.35

9,120,142.36

Interest income1,022,996.53

5,359,579.22

Add: Other income11,887,112.35

41,153,996.06

Investment income ("-" for losses)26,842,916.62

-7,645,696.84

Thereof: Income from investment in associates and jointventures

11,525,414.05

-13,336,744.73

Gain from derecognition of financial assets measured atamortized cost("-" for losses)

Net exposure hedging gains ("-" for losses)

Gains from changes in fair value ("-" for losses)4,482,135.62

5,506,061.85

Credit impairment losses ("-" for losses)-13,854,140.19

-17,047,126.83

Impairment losses ("-" for losses)-6,662,942.77

-3,453,257.28

Gains from assets disposal ("-" for losses)573,566.08

6,176.04

2. Operating profit ("-" for losses)

283,216,794.12

215,562,171.77

Add: Non-operating income6,295.07

36,001.14

Less: Non-operating expenses384,562.35

19,646.23

3. Profit before income tax ("-" for losses)

282,838,526.84

215,578,526.68

Less: Income tax expenses33,907,531.96

27,814,148.46

4. Net profit for the year ("-" for net losses)

248,930,994.88

187,764,378.22

Net profit from continuing operations (loss is stated with “-”)248,930,994.88

187,764,378.22

Net profit from discontinued operations (loss is stated with “-”)

5. Other comprehensive income, net of tax

917,071.74

-231,772.45

(1) Other comprehensive income items which will not be

reclassified subsequently to profit or loss

1) Changes arising from remeasurement of definedbenefit plan

2) Other comprehensive income that will not betransferred subsequently to profit or loss under the equity method

3) Changes in the fair value of the investment in otherequity instruments

4)Changes in the fair value of the Company’s own creditrisk

5)Others

(2) Other comprehensive income items which will be

reclassified subsequently to profit or loss

917,071.74

-231,772.45

1) Other comprehensive income that will be transferredsubsequently to profit or loss under the equity method

917,071.74

-231,772.45

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 offoreign currency financial statements

7)Others

6. Total comprehensive income

249,848,066.62

187,532,605.77

7. Earnings per share

(1) Basic earnings per share

(2) Diluted earnings per share

(5) Consolidated Cash Flow Statement

Unit: RMBItem Current period Last period

1. Cash flows from operating activitiesCash received from sales of goods or rendering of services1,120,339,970.19

1,115,802,342.91

Refund of taxes and surcharges11,555,672.36

46,618,785.96

Other cash receipts relating to operating activities31,769,864.45

13,955,563.11

Sub-total of cash inflows from operating activities1,163,665,507.00

1,176,376,691.98

Cash paid for goods and services599,866,239.16

564,557,802.22

Cash paid to employees and paid on behalf of employees321,819,788.04

303,399,943.79

Payments of taxes and surcharges156,838,340.99

110,906,189.29

Other cash payments relating to operating activities70,910,201.59

72,459,069.07

Sub-total of cash outflows from operating activities1,149,434,569.78

1,051,323,004.37

Net cash flows from operating activities14,230,937.22

125,053,687.61

2. Cash flows from investing activities

Cash received from withdrawing investments6,019,936,121.39

2,602,858,000.00

Cash received from investment income34,024,264.02

12,115,643.11

Net cash received from disposal of fixed assets, intangibleassets and other long term assets

1,751,612.27

350,019.40

Net cash received from disposal of subsidiaries and otheroperating units

Other cash receipts relating to investing activities1,575,600.00

62,265.00

Sub-total of cash inflows from investing activities6,057,287,597.68

2,615,385,927.51

Cash paid to acquire fixed assets, intangible assets and otherlong-term assets

19,656,930.33

63,200,865.18

Cash paid to acquire investments5,078,619,000.00

2,495,160,000.00

Net increase of mortgaged loans

Net cash paid to acquire subsidiaries and other operating units

Other cash payments relating to investing activities689,508.00

562,828.50

Sub-total of cash outflows from investing activities5,098,965,438.33

2,558,923,693.68

Net cash flows from investing activities958,322,159.35

56,462,233.83

3. Cash flows from financing activities

Cash received from capital contributions325,000.00

740,000.00

Thereof: Cash received by subsidiaries from minorityshareholders’ capital contributions

325,000.00

740,000.00

Cash received from borrowings23,793,580.44

27,357,040.47

Other cash receipts from financing activities

200,000.00

Sub-total of cash inflows from financing activities24,118,580.44

28,297,040.47

Cash repayments of borrowings17,950,000.00

19,000,000.00

Distribution of dividends or profits and payments for interestexpenses

261,451,190.99

274,450,215.27

Thereof: Cash payments for dividends or profit to minorityshareholders by subsidiaries

5,400,000.00

20,212,500.00

Other cash payments relating to financing activities718,420.00

93,273,343.37

Sub-total of cash outflows from financing activities280,119,610.99

386,723,558.64

Net cash flows from financing activities-256,001,030.55

-358,426,518.17

4. Effect of foreign exchange rate changes on cash and cash

equivalents

319,130.82

2,316.32

5. Net increase in cash and cash equivalents

716,871,196.84

-176,908,280.41

Add: Cash and cash equivalents at the beginning of period51,529,654.30

330,325,705.08

6. Cash and cash equivalents at the end of period

768,400,851.14

153,417,424.67

Legal representative: Deng Xijun Director of Finance: Sun Zhiqiang Prepared by: Wang Peihua

(6)Cash Flow Statement of Parent Company

Unit: RMBItem Current period Last period

1. Cash flows from operating activities

Cash received from sales of goods or rendering of services1,033,807,255.47

977,719,886.61

Refund of taxes and surcharges8,652,809.30

35,374,013.47

Other cash receipts relating to operating activities28,185,055.78

10,129,400.69

Sub-total of cash inflows from operating activities1,070,645,120.55

1,023,223,300.77

Cash paid for goods and services701,447,683.93

678,222,885.72

Cash paid to employees and paid on behalf of employees132,975,703.70

127,625,777.80

Payments of taxes and surcharges133,395,201.77

74,880,399.39

Other cash payments relating to operating activities70,079,116.96

53,905,411.09

Sub-total of cash outflows from operating activities1,037,897,706.36

934,634,474.00

Net cash flows from operating activities32,747,414.19

88,588,826.77

2. Cash flows from investing activities

Cash received from withdrawing investments5,320,867,121.39

2,406,448,000.00

Cash received from investment income37,223,255.42

56,714,272.77

Net cash received from disposal of fixed assets, intangibleassets and other long term assets

1,784,984.63

60,679.95

Net cash received from disposal of subsidiaries and otheroperating units

Other cash receipts relating to investing activities1,115,600.00

Sub-total of cash inflows from investing activities5,360,990,961.44

2,463,222,952.72

Cash paid to acquire fixed assets, intangible assets and otherlong-term assets

2,035,924.57

32,561,085.58

Cash paid to acquire investments4,518,350,000.00

2,244,100,000.00

Net cash paid to acquire subsidiaries and other operating units

Other cash payments relating to investing activities

562,828.50

Sub-total of cash outflows from investing activities4,520,385,924.57

2,277,223,914.08

Net cash flows from investing activities840,605,036.87

185,999,038.64

3. Cash flows from financing activities

Cash received from capital contributions

Cash received from borrowings

4,232,040.47

Other cash receipts from financing activities

Sub-total of cash inflows from financing activities

4,232,040.47

Cash repayments of borrowings

0.00

Distribution of dividends or profits and payments for interestexpenses

255,640,218.25

253,900,094.44

Other cash payments relating to financing activities

91,268,787.32

Sub-total of cash outflows from financing activities255,640,218.25

345,168,881.76

Net cash flows from financing activities-255,640,218.25

-340,936,841.29

4. Effect of foreign exchange rate changes on cash and cash

equivalents

319,130.82

2,316.32

5. Net increase in cash and cash equivalents

618,031,363.63

-66,346,659.56

Add: Cash and cash equivalents at the beginning of period33,298,801.82

169,828,657.63

6. Cash and cash equivalents at the end of period

651,330,165.45

103,481,998.07

Board of Directors of HARBIN BOSHI AUTOMATION CO., LTD.

August 28

th

, 2025