Financial Performance - Revenue for the reporting period was CNY 21,299,497,985.01, a decrease of 49.82% compared to CNY 42,449,327,997.98 in the same period last year[18]. - Net profit attributable to shareholders was CNY 1,715,822,741.96, down 64.62% from CNY 4,850,093,179.87 year-on-year[18]. - Basic earnings per share decreased by 66.10% to CNY 0.20 from CNY 0.59 in the previous year[18]. - The company reported a total comprehensive income of CNY 1,494 million, down from CNY 4,883 million in the same period last year[22]. - The company achieved operating revenue of RMB 21.299 billion in the first half of 2022, a decrease of 49.82% compared to the same period in 2021[55]. - Net profit attributable to shareholders was RMB 1.736 billion, down 64.40% year-on-year[55]. - Gross profit for the same period was RMB 4,426 million, down 58.3% from RMB 10,614 million in 2021[96]. - Operating profit decreased to RMB 1,802 million, a decline of 68.5% from RMB 5,713 million in the previous year[96]. - Total comprehensive income for the same period was RMB 1,494 million, down 69.4% from RMB 4,883 million in 2021[100]. Assets and Liabilities - Total assets increased by 6.84% to CNY 130,363,574,637.10 from CNY 122,018,160,397.82 at the end of the previous year[18]. - Net assets attributable to shareholders decreased by 3.27% to CNY 55,008,854,187.80 from CNY 56,867,851,034.55[18]. - Current assets rose to RMB 80,934 million, an increase of 11.3% from RMB 72,714 million at the end of 2021[102]. - Current liabilities increased to RMB 59,336 million, a rise of 19.4% from RMB 49,675 million at the end of 2021[104]. - The company's total equity attributable to shareholders was RMB 54,972 million, down 3.2% from RMB 56,831 million at the end of 2021[106]. - The company’s total liabilities increased, with a notable rise in accounts payable and other payables by RMB 3,516 million during the reporting period[115]. Cash Flow - Cash flow from operating activities was CNY 1,857,312,306.03, a decline of 55.02% compared to CNY 4,129,602,305.37 in the same period last year[18]. - Cash and cash equivalents amounted to RMB 16.254 billion as of June 30, 2022[56]. - The net cash generated from operating activities was RMB 1.598 billion, a decrease primarily due to lower sales[57]. - The net cash generated from financing activities was RMB 1,781 million, a significant decrease from RMB 8,146 million in the previous year[126]. - The net increase in cash and cash equivalents was RMB 3,091 million, compared to RMB 4,019 million in the previous year[126]. Market and Product Development - The company plans to focus on new product development and market expansion strategies to improve future performance[18]. - The company achieved a significant increase in overseas sales, maintaining high growth in the export market for engineering machinery despite a decline in domestic sales due to project delays and pandemic impacts[26]. - The company launched 11 new models of tower cranes, receiving positive market feedback and further enhancing its competitive position in the construction machinery sector[30]. - The domestic market share for high-altitude operation machinery increased to the industry leader, with products now covering 71 countries and regions globally[31]. - The company has launched 63 major new products in the first half of the year, with 24 products officially released, achieving 29 digital technology and 27 intelligent technology applications, accounting for nearly 30% of the projects focused on "digitalization, intelligence, and greening"[45]. Acquisitions and Investments - The company completed the acquisition of Luchang Technology, becoming the controlling shareholder, which focuses on smart driving solutions and vehicle networking[38]. - The company completed the acquisition of a 29.99% stake in Shenzhen Luchang Technology Co., Ltd. for a total cash consideration of RMB 780 million[144]. - The company completed the acquisition of an additional 23.83% equity in Luchang Technology for a total cash consideration of RMB 620 million, reducing non-controlling interests by RMB 132 million and capital reserves by RMB 488 million[147]. Research and Development - Research and development expenses for the six months were RMB 1,122 million, down 44.0% from RMB 2,005 million in 2021[96]. - The company has filed nearly 600 patent applications in the first half of the year, a 27% increase year-on-year, with over 40% being invention patents, and 67% of patents focusing on "digitalization, intelligence, and greening"[49]. - The company has made significant advancements in new energy technology, completing prototype verification for 13 core technologies and initiating 18 new component development projects[46]. Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code, with the exception of the separation of the roles of Chairman and CEO, which are held by Dr. Zhan Chunxin[69]. - The company believes that the dual role of Chairman and CEO is beneficial for effective business strategy formulation and execution[69]. - The company’s audit committee has discussed the accounting standards adopted and reviewed the interim report prepared in accordance with International Accounting Standard 34[71]. Shareholder Information - As of June 30, 2022, the total number of shares outstanding is 8,677,992,236, with 99.66% being unrestricted shares[73]. - The largest shareholder, HKSCC Nominees Limited, holds 18.19% of the shares, with a decrease of 266,720 shares during the reporting period[75]. - The second-largest shareholder, Hunan Xingshan Investment Holdings Group Co., Ltd., holds 14.44% of the shares, with no change during the reporting period[75]. - The employee stock ownership plan holds 390,449,924 shares, representing 4.50% of the total shares[78]. - The company has implemented a share repurchase plan to incentivize key talent and support digital transformation and international expansion[54].

Financial Performance - In 2021, the company's operating revenue reached RMB 67.13 billion, an increase of 3.11% compared to RMB 65.11 billion in 2020[25]. - The net profit attributable to shareholders decreased by 13.88% to RMB 6.27 billion from RMB 7.28 billion in 2020[25]. - The net profit after deducting non-recurring gains and losses was RMB 5.83 billion, down 7.61% from RMB 6.31 billion in the previous year[25]. - The net cash flow from operating activities dropped significantly by 64.63% to RMB 2.62 billion from RMB 7.42 billion in 2020[25]. - Basic earnings per share decreased by 22.45% to RMB 0.76, compared to RMB 0.98 in 2020[25]. - The total assets of the company increased by 4.94% to RMB 122.02 billion from RMB 116.27 billion at the end of 2020[25]. - The net assets attributable to shareholders rose by 21.66% to RMB 56.87 billion, up from RMB 46.74 billion in 2020[25]. - The company's total assets reached RMB 122.982 billion, with net assets amounting to RMB 58.260 billion[28]. - The sales revenue from construction machinery was RMB 63.523 billion, reflecting a year-on-year increase of 3.49%[34]. - The sales of aerial work machinery surged to RMB 3.351 billion, marking a significant growth of 310.76% year-on-year[38]. Digital Transformation and Innovation - The company emphasized the acceleration of digital transformation and innovation in new materials and new energy[22]. - The company is focusing on digitalization, intelligence, and green transformation to improve operational efficiency[32]. - The company has formed strategic partnerships with Huawei and China Mobile to enhance digital transformation and management processes[43]. - The application of "5G + Industrial Internet" in tower crane development has successfully transitioned to remote intelligent control, enhancing operational efficiency[44]. - The company has launched multiple intelligent manufacturing projects, including the "Intelligent Manufacturing Demonstration Factory" for excavators, which has been recognized nationally[45]. - Over 150 advanced intelligent manufacturing technologies have been implemented in production lines, with 25 being industry firsts, driving the company's leadership in smart manufacturing[46]. Market Expansion and International Presence - The overseas market is experiencing rapid expansion, contributing to significant growth potential[22]. - The company is expanding its international market presence, with high-altitude machinery sales covering 58 countries and regions across five continents[38]. - Overseas revenue increased by over 51.05% during the reporting period, with significant exports of large-tonnage crawler cranes, marking a breakthrough in the global high-end crawler crane market[54]. - The establishment of a factory in Italy has enabled localized production and sales of tower cranes and aerial work machinery, enhancing market penetration in Europe[55]. Research and Development - The company achieved a 62% year-on-year increase in patent applications, with a 48% increase in invention patent applications, and granted 727 patents, reflecting strong R&D capabilities[53]. - The company has made significant advancements in new energy products, including the world's first pure electric concrete pump truck and a 60-meter hybrid pump truck[51]. - The company has a dedicated R&D team of over 60 personnel focused on new energy engineering machinery core technology research[132]. Environmental, Social, and Governance (ESG) - The company emphasizes a commitment to sustainable development and social responsibility, aligning with national goals for carbon neutrality by 2060[117]. - The ESG governance structure has been enhanced under the board's leadership, with a dedicated team for ESG management[1]. - The company invested approximately RMB 50 million in safety measures in 2021, resulting in a continuous decline in minor injury incidents from 83 in 2019 to 53 in 2021, with a minor injury rate reduction of 30% year-on-year[150]. - The company reported zero confirmed cases of occupational diseases in 2021, maintaining a 100% experience rate for employees in positions with occupational hazards[152]. - The company has actively participated in community investment, aligning with national rural revitalization initiatives and collaborating with local governments and charities[184]. Employee Development and Welfare - The company achieved a 100% labor contract signing rate and provides comprehensive social insurance coverage for all employees[135]. - Employee satisfaction with cafeteria food improved from 77.9% in January to 90.2% by year-end, an increase of 12.3 percentage points[140]. - The company processed over 1,000 employee requests through its feedback platform in 2021, achieving a satisfaction rate of over 90%[137]. - The company has established strategic partnerships with 16 vocational colleges, signing cooperation agreements to train over 600 skilled workers in industrial robotics and CNC operations[160]. - The employee turnover rate for the company was 15.8% in 2021, with a higher turnover rate of 22.0% for employees aged 25 and below[146]. Safety and Compliance - The company has implemented a safety management system that includes annual KPI indicators and regular assessments of operational units[149]. - The number of environmental and safety regulations increased from 256 in 2020 to 347 in 2021, with the company ensuring compliance through training and evaluations[149]. - The company has established a comprehensive internal control system to prevent corruption and ensure transparency in decision-making processes[179]. - The company has not encountered any significant violations of anti-corruption laws or regulations during the year[183]. Supply Chain Management - The company has 918 suppliers within Hunan province and 1,978 suppliers outside the province, focusing on localizing and optimizing the supply chain[167]. - The company has implemented a performance management system that covers all employees, linking performance evaluations to personal development and recognition[164]. - In 2021, the company launched a full-process SRM information system project to improve supply chain management through digitalization and intelligence[169]. Community Engagement and Philanthropy - The company donated RMB 2 million to the "Love Changes Destiny" initiative, contributing a total of RMB 30 million over 19 years, assisting 72,000 students from low-income families[186]. - In response to the severe flooding in Henan in July 2021, the company donated 50 excavators and 50 tractors, valued at RMB 13.76 million, to aid disaster relief efforts[189]. - The company conducted a total of 11 public welfare activities throughout the year, donating cash and materials amounting to RMB 113,575[191].

Financial Performance - Total revenue for the reporting period reached RMB 42.45 billion, an increase of 47.25% compared to RMB 28.83 billion in the same period last year[14] - Net profit attributable to shareholders was RMB 4.85 billion, up 20.70% from RMB 4.02 billion year-on-year[14] - The net cash flow from operating activities surged by 179.19%, amounting to RMB 4.13 billion compared to RMB 1.48 billion in the previous year[14] - Basic earnings per share increased to RMB 0.59, reflecting a growth of 9.26% from RMB 0.54[14] - The net profit for the period attributable to equity shareholders was RMB 4.88 billion, compared to RMB 4.03 billion in the same period last year[16] - In the first half of 2021, the company achieved operating revenue of 42.449 billion yuan, a year-on-year increase of 47.25%[22] - The net profit attributable to shareholders was 4.876 billion yuan, reflecting a year-on-year growth of 21.14%[22] - Revenue from concrete machinery and crane products amounted to RMB 34.150 billion, up 42.4% year-on-year[47] - Revenue from agricultural machinery products reached RMB 1.609 billion, reflecting a year-on-year increase of 52.4%[47] - The company reported a total comprehensive income of RMB 4,883 million for the period, compared to RMB 3,863 million in 2020[114] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 136.73 billion, representing a 17.59% increase from RMB 116.27 billion at the end of the previous year[13] - Net assets attributable to shareholders reached RMB 55.38 billion, an 18.47% increase from RMB 46.74 billion year-on-year[13] - Non-current assets totaled RMB 47.08 billion, while current assets amounted to RMB 89.61 billion[18] - The company's leverage ratio was 58.64%, slightly down from 58.84% at the end of the previous year[18] - As of June 30, 2021, total current liabilities increased to RMB 62,990 million, up from RMB 46,928 million in the previous year, representing a 34.2% increase[118] - Total non-current liabilities decreased to RMB 17,168 million from RMB 21,465 million, indicating a reduction of 20.1%[118] - The company's net assets rose to RMB 56,532 million, up from RMB 47,850 million, marking an increase of 18.0%[120] Cash Flow and Investments - As of June 30, 2021, the company had cash and cash equivalents of RMB 14.068 billion[48] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 4.000 billion, driven by increased sales and collections[48] - The net cash used in investing activities during the same period was RMB 8.127 billion, primarily for purchasing financial products and structured deposits[49] - The net cash from financing activities was RMB 8.146 billion, including RMB 6.088 billion from issuing new shares[51] - Capital expenditures for the six months ended June 30, 2021, totaled RMB 1.044 billion[52] Research and Development - Research and development expenses for the period were RMB 2,005 million, significantly higher than RMB 1,048 million in the previous year[110] - The company continues to focus on research, development, and production of engineering and agricultural machinery, indicating ongoing commitment to innovation and market expansion[136] - Patent applications have increased by 136% year-on-year, with 266 patents granted in the first half of the year, reflecting the company's strong R&D capabilities[41] Market and Product Development - Sales revenue from construction machinery reached 40.426 billion yuan, up 47.80% year-on-year[24] - The company maintained its market leadership in key products, with over 100% year-on-year growth in large-tonnage truck cranes[24] - High-altitude operation machinery sales amounted to 1.736 billion yuan, a significant increase of 397.95% year-on-year[27] - The agricultural machinery sector saw major breakthroughs, with market shares for key products like wheat harvesters and drying machines remaining among the top two in the domestic market[29] - The dry-mixed mortar equipment business continued to grow steadily, maintaining a leading position in the domestic market[30] Strategic Initiatives - The company is accelerating the commercialization of smart agriculture, with a rapid rollout of its smart farming cloud platform[29] - The company has accelerated its digital transformation by establishing strategic partnerships with Huawei and China Mobile, focusing on innovative breakthroughs in traditional management and business models[32] - The application of "5G + Industrial Internet" in tower crane development has successfully transitioned from ground operations to remote intelligent control, enhancing the automation level of tower cranes[32] - The company has initiated a localization strategy overseas, focusing on key countries and regions, and has become the first domestic agricultural machinery manufacturer to obtain long-term supplier qualifications from the United Nations[42] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 345,202[73] - The largest shareholder, HKSCC Nominees Limited, holds 18.21% of the shares, while Hunan Xingxiang Investment Holding Group Co., Ltd. holds 14.45%[74] - The company raised approximately HKD 11.36 billion through the issuance of 193,757,462 new H-shares at a net price of about HKD 5.811 per share[63] Corporate Governance - The company has maintained compliance with corporate governance codes and has no discrepancies with regulatory requirements[66] - The audit committee has reviewed the interim report prepared in accordance with International Accounting Standard 34[69] - The company has adopted all applicable corporate governance codes and has effectively managed its internal controls[67]