Financial Performance - The company achieved a total operating revenue of RMB 14,489,702,674.83 for the year 2021, representing a significant growth compared to the previous year[4]. - The net profit attributable to shareholders was RMB 908,467,752.14, with a cash dividend payout ratio of 38.15%[4]. - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 346,558,633.20 (including tax) based on the total share capital of 866,396,583 shares[4]. - As of December 31, 2021, the parent company's distributable profits amounted to RMB 2,795,815,310.41, with retained earnings of RMB 2,449,256,677.21 to be carried forward to the next year[4]. - The company’s operating revenue for 2021 was approximately ¥14.49 billion, representing a 26.53% increase compared to ¥11.45 billion in 2020[20]. - The net profit attributable to shareholders for 2021 was approximately ¥908.47 million, an increase of 8.42% from ¥837.93 million in 2020[20]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion yuan, representing a year-over-year growth of 20%[91]. - The company reported a net profit of 1,538.10 million, reflecting a significant performance in the financial year[89]. Assets and Liabilities - The total assets of Hangcha Group reached CNY 5.2 billion by the end of 2021, reflecting a growth of 10% from 2020[13]. - The total assets increased to CNY 10.40 billion in 2021, up from CNY 8.11 billion in 2020, representing a growth of 28.3%[194]. - Total liabilities reached CNY 4.37 billion in 2021, compared to CNY 2.76 billion in 2020, indicating a rise of 58.2%[195]. - The company's equity attributable to shareholders increased to CNY 5.60 billion in 2021, up from CNY 4.92 billion in 2020, a growth of 13.8%[195]. - The company's asset-liability ratio increased to 42.03% at the end of the reporting period, up from 34.09% at the beginning, an increase of 7.94 percentage points due to increased financing from bonds and short-term bank loans[165]. Research and Development - Hangcha Group's R&D expenditure increased by 18% in 2021, focusing on innovative technologies and product development[15]. - The company developed 46 series and over 220 models of new products, including high-pressure lithium battery forklifts and hydrogen fuel cell forklifts, enhancing its product innovation capabilities[28]. - Research and development expenses amounted to 601.93 million RMB, an increase of 11.99% compared to the previous year[46]. - The company is actively investing in new technologies and products, particularly in the unmanned forklift segment, to drive future growth[82]. Market Expansion and Strategy - The company aims to expand its market presence in Europe and North America, targeting a 15% market share in these regions by 2025[15]. - The company is expanding its overseas market presence by establishing companies in Oceania, South America, and the Middle East to improve service capabilities[72]. - Hangcha Group plans to launch three new electric forklift models in 2022, aiming to capture a larger share of the green energy market[15]. - The company aims to achieve a revenue growth target of 10% in the upcoming fiscal year[89]. Operational Efficiency - The company reported a 30% increase in production capacity in 2021, enabling it to meet rising market demand more effectively[15]. - The company is implementing an SAP/ERP project to enhance data management and operational efficiency, which is expected to significantly improve group control capabilities and business efficiency[33]. - The company aims to improve production efficiency by adopting new technologies and enhancing supply chain stability[75]. - The company plans to reduce operational costs by 15% through process optimization and technology integration[91]. Environmental Responsibility - The company is classified as a key pollutant discharge unit, with specific emissions data reported for wastewater and air pollutants[117]. - The company has invested in environmental protection facilities, ensuring that wastewater and air emissions meet regulatory standards[120]. - The company has committed to continuous improvement in environmental management, utilizing advanced technologies and processes to minimize emissions and waste[132]. - The company has implemented energy-saving measures, including the use of a rooftop solar photovoltaic power station, which significantly reduces electricity consumption[135]. Governance and Compliance - The company’s governance structure complies with regulatory requirements, ensuring effective execution of internal control systems and information disclosure management[84]. - The company has not reported any significant changes in the positions of directors, supervisors, and senior management during the reporting period[99]. - The company has maintained a good integrity status for itself and its major stakeholders during the reporting period[155]. - The company has not faced any delisting risks or significant violations during the reporting period[154]. Challenges and Risks - The company has identified significant risk factors that may adversely affect its future development strategies and operational goals[8]. - The company faces industry competition risks, particularly from product homogeneity and new entrants, necessitating continuous product structure optimization[78]. - The company is addressing rising raw material costs by establishing deep partnerships with suppliers and optimizing procurement strategies[79]. - The company will closely monitor the progress of epidemic prevention and control, enhancing various preventive measures to mitigate the negative impact of the pandemic on operations[82].

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, achieving a total of 1.2 billion yuan, representing a year-on-year growth of 25%[1]. - Hangcha Group reported a revenue of CNY 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[18]. - The company's operating revenue for the first half of the year reached ¥7,366,806,668.45, representing a 43.79% increase compared to the same period last year[22]. - Net profit attributable to shareholders was ¥504,663,932.02, up 23.02% year-on-year[22]. - The company achieved a net profit of CNY 150 million, up 20% compared to the same period last year[18]. - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management and pricing strategies[100]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion yuan for the first half of 2021, representing a year-on-year growth of 20%[100]. - Net profit for the first half of 2021 was CNY 545,636,339.49, representing a 22% increase from CNY 447,618,346.74 in the previous year[149]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[1]. - Hangcha Group plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales in that region by the end of 2022[18]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach, with a budget of 500 million yuan allocated for this purpose[1]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's operational capabilities and increase market share by 5%[101]. - The company is focusing on market expansion and new product development to drive future growth[143]. Research and Development - Research and development expenses increased by 30%, totaling 150 million yuan, to support innovation in automation and smart logistics solutions[1]. - The company is investing CNY 200 million in R&D for new technologies and products, focusing on electric and automated forklifts[18]. - Research and development expenses rose to CNY 296,029,023.10, up 43.38% to reflect the company's ongoing investment in R&D[55]. - New product launches are expected to contribute an additional 200 million yuan in revenue, with a focus on electric forklift technology[1]. - Research and development efforts have led to the introduction of two new products, which are expected to contribute an additional 300 million yuan in revenue by the end of 2021[101]. Operational Efficiency - The company has implemented new strategies to improve operational efficiency, aiming for a 15% reduction in production costs by the end of 2021[1]. - The company aims to reduce operational costs by 10% through efficiency improvements and automation initiatives in the next fiscal year[101]. - The company aims to enhance its production capacity by 15% through the introduction of new manufacturing technologies[18]. - The company has implemented various measures for waste gas treatment, including high-altitude discharge after filtration for different types of emissions[79]. Financial Position and Assets - Total assets reached CNY 5 billion, reflecting a growth of 10% year-on-year[18]. - The company's total assets grew by 26.76% to ¥10,275,650,940.75 compared to the end of the previous year[22]. - The company's cash and cash equivalents increased by 47.07% to ¥310,607,460.00, attributed to the funds raised from the convertible bond issuance and increased sales receipts[56]. - The company reported a total of 247.17 million RMB in financial assets at the end of the reporting period, up from 242.40 million RMB at the beginning of the year[64]. Environmental Compliance - The company reported a total wastewater discharge of 10.442 tons for COD and 0.999 tons for ammonia nitrogen, with COD concentration at 346 mg/L and ammonia nitrogen concentration at 33.1 mg/L, complying with national standards[76]. - The company has established a wastewater treatment station and implemented various pollution control measures, ensuring that wastewater meets discharge standards[78]. - The company has invested in environmental protection facilities to ensure compliance with pollution discharge standards, including the installation of filtration and dust removal equipment[78]. - The company’s noise emissions are compliant with the relevant industrial noise standards, with no exceedances reported[77]. Shareholder and Capital Management - The company has committed to maintaining shareholder value through regular dividends, with a proposed dividend payout ratio of 40% for the fiscal year 2021[101]. - The company reported a profit distribution of CNY 346.56 million to shareholders during the first half of 2021[170]. - The total equity attributable to shareholders reached CNY 4,895,932,085.51, an increase of 8.7% from CNY 4,505,188,881.84[146]. - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of 2021[73]. Risk Factors - The company has identified major risk factors that could impact future growth, including supply chain disruptions and increased competition in the market[1]. - The company faces risks from rising raw material costs, particularly in steel and plastics, which have seen significant price increases this year[65]. - The company is focusing on enhancing supply chain integration and optimizing design to improve material utilization and cost control[65]. Corporate Governance - The integrity status of the company and its controlling shareholders was reported as good during the period[106]. - The company had no significant litigation or arbitration matters during the reporting period[106]. - The company has established an environmental management system across itself and 11 subsidiaries, achieving compliance in wastewater and waste gas emissions in the first half of 2021[90].

[Important Notice](index=3&type=section&id=I.%20Important%20Notice) [Statement on Report Authenticity](index=3&type=section&id=1.1%20The%20Company's%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Guarantee%20the%20Truthfulness%2C%20Accuracy%2C%20and%20Completeness%20of%20the%20Quarterly%20Report%20Content) The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility for any false statements or omissions; this quarterly report is unaudited - The company's management ensures the truthfulness, accuracy, and completeness of this report[3](index=3&type=chunk) - This company's Q1 2021 report is unaudited[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=II.%20Company%20Profile) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) The company achieved strong performance in Q1 2021, with operating revenue growing by **63.92%** to **3.352 billion yuan** and net profit attributable to parent company increasing by **44.92%** to **221 million yuan**, while net cash flow from operating activities turned positive to **426 million yuan** Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue (yuan)** | 3,351,876,868.96 | 2,044,840,285.70 | 63.92% | | **Net Profit Attributable to Shareholders (yuan)** | 220,711,635.31 | 152,296,392.78 | 44.92% | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (yuan)** | 218,627,007.94 | 134,865,756.49 | 62.11% | | **Net Cash Flow from Operating Activities (yuan)** | 426,180,056.40 | -14,937,272.44 | N/A | | **Basic Earnings Per Share (yuan/share)** | 0.25 | 0.18 | 38.89% | | **Weighted Average Return on Net Assets (%)** | 4.39% | 3.49% | Increased by 0.9 percentage points | - During the reporting period, total non-recurring gains and losses amounted to **2.08 million yuan**, primarily from government subsidies and reversal of impairment provisions for receivables[5](index=5&type=chunk) [Shareholder Ownership](index=4&type=section&id=2.2%20Shareholder%20Ownership%20at%20Period%20End) As of the end of the reporting period, the company had **17,676 shareholders**, with a relatively concentrated equity structure where the top two shareholders collectively held over **64%** of shares - As of the end of the reporting period, the company had **17,676 shareholders**[6](index=6&type=chunk) Top Two Shareholders' Ownership | Shareholder Name | Number of Shares Held | Shareholding Ratio (%) | | :--- | :--- | :--- | | Zhejiang Hangcha Holding Co., Ltd. | 386,744,960 | 44.64% | | Hangzhou Industrial Investment Group Co., Ltd. | 174,128,780 | 20.10% | [Significant Events](index=5&type=section&id=III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Statement Items](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, several financial indicators changed significantly, with cash increasing by **255.40%** due to convertible bond issuance and sales, and operating cash flow turning positive due to expanded sales [Balance Sheet Item Changes](index=5&type=section&id=3.1.1%20Consolidated%20Balance%20Sheet%20Items) Cash and cash equivalents increased by **255.40%** due to convertible bond issuance and sales, while short-term borrowings and notes payable also significantly rose due to business expansion - Cash and cash equivalents increased by **255.40%**, primarily due to proceeds from convertible bond issuance and increased sales collections[8](index=8&type=chunk) - Short-term borrowings increased by **751.02%**, mainly due to increased borrowing[9](index=9&type=chunk) - Notes payable increased by **216.77%**, primarily due to an increase in outstanding acceptance bills[9](index=9&type=chunk) - Bonds payable is a new item, primarily due to the issuance of convertible bonds in the current period[9](index=9&type=chunk) [Income Statement Item Changes](index=6&type=section&id=3.1.2%20Income%20Statement%20Items) Operating revenue and cost increased by **63.92%** and **68.82%** respectively due to expanded sales, with R&D expenses also rising by **47.34%** - Operating revenue increased by **63.92%** year-on-year, and operating costs increased by **68.82%**, primarily due to expanded sales scale in the current period[10](index=10&type=chunk) - R&D expenses increased by **47.34%** year-on-year, mainly due to continuous increased investment in R&D during the current period[10](index=10&type=chunk) [Cash Flow Statement Item Changes](index=6&type=section&id=3.1.3%20Cash%20Flow%20Statement%20Items) Cash inflow from operating activities significantly increased by **127.26%** due to expanded sales, turning net cash flow positive, while financing cash flow surged from convertible bond issuance - Cash received from sales of goods and rendering of services increased by **127.26%** year-on-year, primarily due to expanded sales scale in the current period[11](index=11&type=chunk) - Cash paid for goods and services increased by **102.94%** year-on-year, primarily due to increased sales volume and expanded production scale in the current period[11](index=11&type=chunk) - Cash received from borrowings amounted to **1.152 billion yuan**, mainly due to increased proceeds from convertible bond issuance in the current period[12](index=12&type=chunk) [Appendix](index=8&type=section&id=IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix provides the unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021 [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets were **10.17 billion yuan**, total liabilities were **4.436 billion yuan**, and net assets attributable to shareholders were **5.34 billion yuan** Key Consolidated Balance Sheet Items (As of March 31, 2021) | Item | Amount (yuan) | | :--- | :--- | | **Total Assets** | 10,169,908,471.80 | | **Total Liabilities** | 4,435,818,116.74 | | **Total Equity Attributable to Parent Company Owners** | 5,340,070,226.36 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, the company achieved total operating revenue of **3.352 billion yuan**, total operating costs of **3.101 billion yuan**, and net profit attributable to parent company shareholders of **221 million yuan** Key Consolidated Income Statement Items (Q1 2021) | Item | Amount (yuan) | | :--- | :--- | | **I. Total Operating Revenue** | 3,351,876,868.96 | | **II. Total Operating Costs** | 3,101,435,495.56 | | **III. Operating Profit** | 267,752,105.12 | | **V. Net Profit** | 230,807,519.35 | | **Net Profit Attributable to Parent Company Shareholders** | 220,711,635.31 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2021, net cash flow from operating activities was **426 million yuan**, from investing activities was **-85.39 million yuan**, and from financing activities was **1.102 billion yuan**, with cash and cash equivalents totaling **3.537 billion yuan** at period end Key Consolidated Cash Flow Statement Items (Q1 2021) | Item | Amount (yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | 426,180,056.40 | | **Net Cash Flow from Investing Activities** | -85,386,877.74 | | **Net Cash Flow from Financing Activities** | 1,102,184,225.74 | | **Cash and Cash Equivalents at Period End** | 3,536,775,345.20 | [Explanation of Adjustments for First-Time Adoption of New Lease Standards](index=19&type=section&id=4.2%20Adjustments%20for%20First-Time%20Adoption%20of%20New%20Lease%20Standards%20from%202021) Effective January 1, 2021, the company adopted new lease standards, resulting in a retrospective adjustment to the opening balance sheet, recognizing right-of-use assets and lease liabilities, increasing total assets and liabilities by approximately **29.7 million yuan** - The company adopted the newly revised 'Accounting Standard for Business Enterprises No. 21 – Leases' effective January 1, 2021[35](index=35&type=chunk) - Upon first-time adoption of the new lease standards, the company adjusted its consolidated balance sheet as of January 1, 2021, adding **32.53 million yuan** in 'right-of-use assets' and **29.69 million yuan** in 'lease liabilities'[30](index=30&type=chunk)[31](index=31&type=chunk)