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]