Group 1: Company Overview and Strategic Direction - The company focuses on innovation in business models, transformation in industry direction, and changes in production methods, primarily divided into logistics automation equipment and recycling industries [2] - In the logistics automation equipment sector, the company aims to maintain stable development in traditional automotive automation conveying equipment while actively expanding into automated warehousing to capture opportunities in the e-commerce logistics market [2] - The recycling industry strategy includes establishing a complete supply chain for the recycling, dismantling, and reuse of end-of-life vehicles to lay a foundation for future leapfrog development [2] Group 2: Recycling Industry Developments - The company has formed a partnership with Germany's ALBA to establish Anhui Oubao Tianqi, specializing in the fine dismantling of end-of-life vehicles and recycling of resources [2] - The company holds shares in Beijing Yongzheng Jiaying Technology, participating in the operation of two major platforms: the China Resource Recycling Trading Network and the China Used Auto Parts Trading Network [2] - Plans are in place to gain a controlling stake in Suzhou Recycling to secure stable resources for the dismantling of end-of-life vehicles, alongside efforts to establish more regional points for resource recovery [2] Group 3: Wind Power Industry Status - In the wind power sector, the company will maintain current operations without increasing investments in blade production [2] - The casting and machining segments are expected to contribute profits this year due to adjustments in customer structure, increased orders, and improved efficiency from released production capacity [2]

Group 1: Company Overview - Tianqi Automation is one of the five major business segments, focusing on automated warehousing solutions [2] - The company collaborates with SWISSLOG and Zhongyuan International for the development and integration of automated warehouse systems [2] - Market positioning includes retail (e-commerce and physical stores), manufacturing (high-value and mass products), and logistics [2] Group 2: Project Implementation - Notable projects include the Nike Taicang warehouse system, FAW-Volkswagen's 330,000 units/year intelligent distribution center, and Guangzhou Baiyun Airport's mail and luggage sorting system [2] - The company emphasizes its advantages in technical services, engineering construction, and warehousing operations [2] Group 3: Collaboration with SWISSLOG - SWISSLOG is a global leader in logistics automation, with systems and products sold in over 50 countries [3] - The collaboration aims to provide comprehensive logistics engineering solutions, including design, supply, implementation, and support [3] Group 4: Automotive Logistics Equipment - The core business involves engineering design, implementation, and management of automotive logistics equipment, serving most domestic car manufacturers [3] - The company has expanded its operations internationally alongside the overseas expansion of automotive manufacturers [3] Group 5: Automotive Recycling Business - The automotive recycling market is in a preparatory phase, with plans to establish operations in regions with high vehicle ownership [3] - The business will focus on the reuse of second-hand parts and raw material recovery, leveraging partnerships with companies like ALBA for advanced management and technology [3] Group 6: Acquisition of Suzhou Material Recycling Co., Ltd. - The acquisition aims to create a complete industrial chain for recycling and utilizing resources, enhancing business scale and profitability [4] - The company expects to improve operational efficiency and safety post-acquisition, with a performance guarantee for 48 months [4]

Group 1: Company Development Direction - The company will focus on developing automated warehousing and the recycling and dismantling of old vehicles [2] - The company has invested CNY 12 million to acquire a 20% stake in Beijing Yongzheng Jiaying Technology Development Co., Ltd. [2] - The aim is to create a trading platform for used auto parts, facilitating information sharing and online-offline transactions [2] Group 2: Second-hand Panda Network - The second-hand Panda Network has over 500 dismantling companies, 1,000 repair shops, and 3,000 recycling points as members [2] - All scrapped vehicle deregistration and subsidy applications are processed through another website, which is beneficial for tracking scrapped vehicle information [2] Group 3: Recycling Volume and Market Trends - The recycling volume of old vehicles in Ningbo has been increasing rapidly due to the national policy on phasing out yellow-label vehicles [3] - Although there may be a short-term decline in recycling volume after the policy exit, the overall trend is expected to rise due to increasing vehicle ownership [3] Group 4: Company Performance and Projects - The company’s traditional automotive automation equipment business has maintained stability with sufficient orders [3] - The remote data collection decision-making platform and intelligent equipment system project is set to be implemented in October 2015, with completion expected by April 2016 [3] - The company is progressing with two merger and acquisition projects, with a formal draft to be submitted for shareholder approval by the end of July 2015 [3]

Group 1: Future Development Directions - The company will focus on developing automation equipment and the recycling and dismantling of end-of-life vehicles, with a strong emphasis on automated warehousing, which has high market expectations and good future prospects [2] - The company is actively promoting a full industry chain layout for the recycling and dismantling of end-of-life vehicles [2] Group 2: Progress in Vehicle Recycling and Dismantling - The company has partnered with ALBA in Germany to establish Anhui Oubao Tianqi Renewable Resources Technology Co., Ltd., specializing in the fine dismantling and recycling of end-of-life vehicles [2] - The company has invested in Beijing Yongzheng Jiaying Technology Development Co., Ltd. to participate in the operation of two major platforms: the China Resource Recycling Trading Network and the China Used Auto Parts Trading Network [2] - The company will acquire a controlling stake in Suzhou Material Recycling Co., Ltd. to secure stable resources for the recycling and dismantling of end-of-life vehicles [2] - The company is actively pursuing mergers and acquisitions with Yichang Lidi Environmental Technology Group Co., Ltd. and Ningbo End-of-Life Vehicle Recycling Co., Ltd. to deepen industry resource integration [2] Group 3: Development of Automated Warehousing - The company is focusing on e-commerce automated warehousing and cold chain logistics, collaborating with Swisslog, a leader in global logistics automation, to develop high-end domestic warehousing [3] - The company aims to leverage its advantages to expand into new fields of automated warehousing logistics equipment, creating greater growth opportunities [3] Group 4: Wind Power Industry Performance - The wind power sector has turned profitable, with improvements in efficiency due to customer structure adjustments and capacity release [3] - Blade production is still expected to incur losses, and the company will maintain its current operations without increasing investment [3] Group 5: Changes in Fund Utilization - The company decided to change the use of raised funds from expanding production capacity in Anhui to acquiring the vehicle dismantling business and permanently supplementing working capital due to insufficient local production support [3]

Group 1: Company Overview - Tianqi Automation Co., Ltd. was established in 1984 and entered the automotive automation equipment sector in 1994, becoming a leading enterprise in the field [2] - The company went public on the Shenzhen Stock Exchange in 2004 and has experienced rapid growth over the past decade [2] - Since 2010, the company has focused on the circular economy and is transitioning from a single investment-driven model to a dual model driven by both consumption and investment [2] Group 2: Business Segments - The automation equipment business includes automotive automation equipment and automated warehousing [2] - The company plans to increase technological investment in automotive automation, applying "Industry 4.0" technologies to automotive production lines [2] - The focus for automated warehousing is on e-commerce automation and cold chain logistics [2] Group 3: Market Performance - In 2015, the automation equipment business saw over 60% growth compared to the previous year [3] - The warehousing business had a strong start in the second half of 2015, with nearly 100 million in orders in the implementation phase [3] Group 4: Competitive Advantages - The company has a long-standing presence in the automated warehousing sector, providing a solid technical foundation [3] - A complete team has been established through the recruitment of foreign professionals, enhancing service response speed compared to foreign competitors [3] - Future development will focus on system integration, offering comprehensive automated warehousing and logistics solutions [3] Group 5: Automotive Recycling Industry - The current vehicle ownership in China is approximately 176 million, with an annual increase of 25 million vehicles [3] - The actual dismantling volume of vehicles has not yet seen explosive growth due to government regulations and the high renewal rate of vehicles [3] - The company is accelerating the construction of recycling bases to improve the profitability of scrap vehicle enterprises by enhancing resource utilization [3] Group 6: Future Business Directions - The company is exploring the waste recycling sector, particularly in urban waste management, through partnerships such as with Chongqing Environmental Protection Holdings [4] - There are considerations for future collaboration with Wuxi Liyou Medical Automation Technology Co., Ltd., depending on development and cooperation opportunities [3]

Group 1: Company Overview - The company has established a leading position in the automation equipment sector but faces increasing market competition due to the current automotive market conditions and bidding policies [2]. - The automotive recycling business is expected to grow in the long term despite current challenges, including a decline in the volume of old car recycling due to low scrap steel prices and the exit of yellow label car policies [2]. - The wind power business is gradually being phased out, with no new investments planned, although it remains profitable overall [2]. Group 2: Business Performance - The new orders for automation equipment are stable compared to previous years, indicating steady development in this sector [3]. - The automated warehousing sector has seen a decline in order volume due to unstable market demand and economic conditions, prompting the company to enhance market development efforts [3]. Group 3: Automotive Recycling Strategy - The company is strategically acquiring sites for old car recycling and disassembly, focusing on areas with high vehicle ownership, particularly in the Yangtze River Delta [3]. - Revenue from old car recycling primarily comes from scrap steel, but the profitability has decreased significantly due to falling scrap prices [3]. Group 4: Financial Management - Management expenses increased by 36.26% year-on-year, attributed to the expansion of the company's consolidation scope and increased R&D expenditures [4]. - Despite the increase, management expenses remain within a controllable range when excluding specific factors [4]. Group 5: Future Directions - The company aims to expand its business model to include engineering consulting, design, procurement, and construction services, enhancing profitability and extending its value chain [4].

Financial Performance - The company's operating revenue for 2018 was ¥3,502,762,534.57, representing a 42.49% increase compared to ¥2,458,332,708.71 in 2017[15]. - The net profit attributable to shareholders for 2018 was ¥138,449,136.53, a 63.33% increase from ¥84,766,398.19 in 2017[15]. - The net profit after deducting non-recurring gains and losses was ¥117,185,341.02, up 130.19% from ¥50,907,653.27 in 2017[15]. - The net cash flow from operating activities reached ¥365,468,724.78, a significant increase of 1,120.04% compared to ¥29,955,498.61 in 2017[15]. - Basic earnings per share for 2018 were ¥0.37, reflecting a 60.87% increase from ¥0.23 in 2017[15]. - Total assets at the end of 2018 amounted to ¥6,038,875,158.07, a 13.48% increase from ¥5,321,509,351.06 at the end of 2017[15]. - The net assets attributable to shareholders were ¥2,089,963,596.88, up 5.74% from ¥1,976,603,441.02 at the end of 2017[15]. - The weighted average return on equity for 2018 was 6.80%, an increase of 2.46% compared to 4.34% in 2017[15]. Dividends and Profit Distribution - The company proposed a cash dividend of ¥0.57 per 10 shares, based on a total of 370,549,434 shares[4]. - The proposed cash dividend for 2018 is RMB 0.57 per 10 shares, amounting to a total cash dividend of RMB 21,121,317.74, which represents 15.26% of the consolidated net profit attributable to ordinary shareholders[150]. - The cash dividend policy requires that at least 15% of the distributable profit be distributed in cash each year, ensuring stable returns to shareholders[148]. - The company achieved a net profit of RMB 80,591,074.80 for the year 2018, with a distributable profit of RMB 482,395,463.61 after accounting for a 10% statutory surplus reserve[149]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with cash dividends amounting to RMB 18,527,471.70 in 2016, RMB 18,527,471.70 in 2017, and RMB 21,121,317.74 in 2018[150]. Business Operations and Growth Areas - The company’s automotive automation equipment business is a key growth area, with a focus on EPC project management, which has been successfully implemented in small projects and is now being expanded to larger vehicle manufacturers[25][26]. - The recycling industry segment is expected to grow significantly, with an estimated automotive scrappage volume exceeding 10 million by 2020, driven by the increasing number of vehicles in circulation[35]. - The company’s heavy equipment segment has successfully developed large offshore wind turbine hubs, gaining competitive advantages in the global wind power industry[30]. - The company is actively expanding its overseas market presence, having established a subsidiary in Japan to facilitate collaboration with Japanese automotive manufacturers[33][34]. - The company is focusing on developing new products such as gearboxes and injection molding machines in response to customer demand[52]. Research and Development - The company has been recognized as a national high-tech enterprise and has added 147 new patents during the reporting period, including 39 invention patents[42]. - Research and development expenses totaled CNY 101,224,312.53, representing an increase of 87.68% compared to the previous year, driven by increased investments in subsidiaries[82]. - The company’s R&D investment accounted for 3.88% of its operating revenue, totaling CNY 13,594,040[83]. - The company aims to enhance its market competitiveness through technological advancements in automation logistics equipment, focusing on breaking foreign technology monopolies[84]. Acquisitions and Investments - The company acquired 65% of Ganzhou Lithium Industry Co., Ltd. for ¥58,500,000.00 on December 31, 2018[68]. - The acquisition of Shenzhen Qiantai Energy Recycling Technology Co., Ltd. was completed for ¥161,000,000.00 on June 30, 2018, with a reported net loss of ¥16,247,853.60 since acquisition[68]. - The total identifiable net assets acquired from Shenzhen Qiantai were valued at ¥104,779,022.81, indicating a significant premium paid over the fair value[70]. - The total goodwill recognized from the acquisitions amounted to ¥40,957,349.97 for Ganzhou Lithium and ¥56,220,977.19 for Shenzhen Qiantai, indicating that the acquisition costs exceeded the fair value of identifiable net assets[171]. Market and Sales Performance - Domestic sales accounted for 84.09% of total revenue, amounting to CNY 2,945.44 million, while international sales decreased by 8.15% to CNY 557.32 million[59]. - The company signed new orders worth 1.533 billion yuan in the automotive automation equipment business during the reporting period, with 560 million yuan specifically for new energy vehicle projects[50]. - The company’s circular economy segment reported revenue of CNY 1,137.13 million, marking an impressive growth of 86.88% year-on-year, although its gross margin fell by 2.69%[55]. Operational Efficiency and Cost Management - The total operating costs for 2018 amounted to ¥2,792,106,273.19, a 51.1% increase from ¥1,846,928,220.45 in 2017[66]. - The company is focused on optimizing its operational efficiency, as indicated by the reduction in inventory levels and increased production capacity[63]. - The company aims to improve operational efficiency by implementing new technologies, expecting a cost reduction of 10% in the next fiscal year[156]. Risks and Challenges - The company faces risks related to industry demand fluctuations, which are closely tied to fixed asset investments in downstream industries[128]. - Rising raw material prices have led to increased production costs and declining gross margins, impacting overall profitability[129]. - Foreign exchange fluctuations pose a risk to the company's international competitiveness and profitability, with measures in place to hedge against these risks[132]. Compliance and Governance - The company actively communicates with shareholders, especially minority shareholders, to gather their opinions and ensure their interests are protected[146]. - The board of directors must obtain approval from more than two-thirds of the voting rights at the shareholders' meeting for any changes to the profit distribution policy[146]. - The company has implemented measures to ensure compliance with the latest regulations from the China Securities Regulatory Commission regarding profit compensation commitments[158].