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: Wind Power Industry - In 2015, the company's wind power sector was overall profitable, although wind blades remained unprofitable, and no new investments will be made in this area [2] - The company will focus on developing automation equipment and the recycling and dismantling of old vehicles, with wind power no longer being a primary development direction [2] Group 2: Automotive Market Impact - The current downturn in the automotive market has a limited impact on the company, primarily because its client base consists of mid-to-high-end and joint venture manufacturers [2] - The company plans to shift towards a model that combines equipment and services in the automotive automation sector due to the slowdown in automotive investments [2] Group 3: Industrial 4.0 and Project Development - The company has implemented "Industrial 4.0" technologies in projects with Ford and Volvo, with project completion expected this year [2] - The company will promote a combination of equipment and data services initially, separating them later as the value of data services becomes apparent [2] Group 4: Automotive Dismantling Market - The automotive dismantling market in China has not yet reached an explosive growth phase, as the average age of vehicles is still relatively young [3] - The rapid development of the dismantling market in recent years is attributed to government policies aimed at eliminating yellow-label vehicles [3] Group 5: Second-hand Parts Trading Platform - The company operates a second-hand parts trading platform, "Second-hand Panda Network," to facilitate the trading of used auto parts and enhance information sharing [3] Group 6: Collaboration and Strategic Partnerships - The company has established a partnership with Chongqing Environmental Protection Holdings to address urban kitchen waste management, leveraging synergies with its vehicle dismantling business [4] - Collaborations with major logistics system integrators and third-party service providers aim to enhance the company's automated warehousing capabilities [4] Group 7: Automation Warehouse Business - The company began taking orders for its automated warehousing projects in June 2015, primarily in the pharmaceutical and beverage sectors, with revenues nearing 100 million in 2015 [4] - The automated warehousing business is expected to experience rapid growth over the next three to five years [4]

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: Strategic Partnerships - In May 2014, the company signed a strategic cooperation agreement with Siemens for data-driven business in the automotive industry, with implementation projects planned for Volvo and Ford in 2016 [2] - The Ford project is expected to enter the debugging phase in February 2016, while the Volvo project is set to launch in May 2016 [2] Group 2: Automation Warehouse Business - The company has established a complete team for the automation warehouse sector, laying a foundation for rapid development [2] - The automation warehouse business is expected to experience high growth within the next three to five years due to a robust order backlog [2] Group 3: Wind Power Industry - The wind power sector includes composite materials (mainly wind turbine blades) and structural components (mainly castings and machining) [2] - In 2015, wind turbine blades incurred losses, while structural components were profitable; improvements in management and capacity are anticipated in 2016 [2] Group 4: Pharmaceutical Automation Collaboration - The company signed a framework agreement with Wuxi Liyou Pharmaceutical Automation Technology Co., Ltd. in August 2015 for cooperation in automation equipment design and overall logistics system planning [2] Group 5: Automotive Recycling Market - In December 2015, the company completed an asset restructuring to establish a full industry chain layout in the automotive recycling and dismantling sector [3] - Continuous expansion efforts in the automotive recycling field are planned for 2016 [3] Group 6: Profitability of Subsidiaries - Ningbo Recycling's profitability was lower than expected due to falling steel prices and incomplete mechanization; however, Lidi Group's profitability met expectations with a net profit commitment of 40 million yuan in 2015 [3]

Group 1: Automation Warehouse Business - The company has made significant progress in its automation warehouse business, securing orders in the food, beverage, and pharmaceutical sectors, with a revenue of approximately 100 million yuan confirmed in 2015 [2] - The gross profit margin for the automation warehouse business is slightly lower than that of the automotive automation equipment business [2] - The company plans for the automation warehouse business to surpass the automotive automation equipment business in scale within the next 3-5 years [2] Group 2: Team and Service Advantages - The company boasts a highly skilled team with extensive project experience and technical expertise, which is considered top-tier among domestic companies [2] - The company offers localized services that are timely and flexible, providing a competitive edge over international manufacturers [2] Group 3: Automotive Recycling and Dismantling - The company is expanding its operations in the automotive recycling and dismantling sector, planning to establish 3-4 locations in the Yangtze River Delta region this year [3] - In 2015, approximately 7,000 vehicles were dismantled in Ningbo, primarily through manual processes, with plans to enhance mechanization in 2016 to improve dismantling efficiency [3] - The company aims to increase the overall profitability of the automotive recycling business by optimizing the sales of used parts through centralized management [3] Group 4: Financial Management - The company's management expenses are relatively high due to the nature of engineering management, which involves significant project site management costs and design fees [3] - The company has successfully met its profit commitments, achieving a net profit of 40 million yuan in 2015 [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].

Group 1: Company Overview - The company has two main businesses: traditional industrial automation and the automotive recycling industry [2] - The automation business focuses on automotive production lines and has a leading position in the industry, but faces limited growth due to a sluggish automotive market [2] - The company is actively developing the automotive recycling sector through acquisitions and establishing trading platforms for used auto parts [2] Group 2: Market Conditions - The growth of scrapped vehicles has accelerated due to the yellow label vehicle policy, which has now exited, leading to a decrease in recovery and dismantling volumes [2][4] - Despite a large number of vehicles in the market, the average age of cars is still low, indicating that explosive growth in the recycling industry may take another two to three years [2][4] Group 3: Business Strategy - The company plans to develop the recycling business through an extension strategy, considering industry characteristics and licensing restrictions [2] - The wind power business is being phased out, with plans to reduce its share and potentially divest if suitable opportunities arise [2] Group 4: New Energy Vehicles - The company maintains a cautious stance on the current "new energy vehicle boom," noting that traditional automakers are investing relatively little, which poses risks [2][4] - Continuous monitoring of new energy vehicle projects will be conducted, focusing on investments from traditional automakers [4] Group 5: Overseas Orders and Market Strategy - Most current orders are domestic, but the company is adjusting its market strategy to increase overseas orders, primarily targeting Europe [4] - The gross profit margin for domestic orders is declining due to market conditions and bidding policies [4] Group 6: Industry Challenges - The slow development of the automotive recycling industry is attributed to the insufficient natural scrapping rate of vehicles [4] - The approval process for recycling licenses has been decentralized but remains stagnant, with no new licenses being issued [4] Group 7: Financial and Operational Updates - The company has been cautious in acquiring new recycling sites, focusing on those that can synergize with existing operations [5] - The gross profit margin for the automation logistics equipment business has decreased due to low-price competition, but the order situation is expected to remain stable [5] - The automated warehousing business has faced challenges due to a fragmented customer base and unstable market demand, but improvements are anticipated in the second half of the year [5]

Group 1: Company Investigation and Business Strategy - The company was investigated due to incomplete information disclosure during a private placement in 2013, with a progress announcement made on May 27, 2017, as a regulatory requirement before the investigation results are released [2][3]. - The company's strategy for the used car recycling and dismantling business is focused on the Ningbo area, with a significant increase in recycling volume following the introduction of the yellow label car policy in 2013 [2][3]. - The domestic natural scrapping peak for automobiles is expected between 2019 and 2023, with over 80 million new registered vehicles from 2009 to 2013, indicating a potential surge in recycling demand [2][3]. Group 2: Financial Performance and Market Conditions - The gross margin for the recycling business in Ningbo was reported at 36.28% last year, primarily driven by the dismantling equipment business of Lidi Group [3][4]. - The company is adapting to the slowdown in the automotive industry by expanding value-added services and exploring overseas markets, particularly in Europe, where there has been limited investment in automotive production lines over the past decade [3][4]. Group 3: Future Business Development - The company plans to establish a second-hand parts trading platform and dismantling bases to prepare for market changes [3][4]. - The EPC (Engineering, Procurement, and Construction) model is being developed to enhance profitability by providing comprehensive project management services, with potential future expansion beyond the automotive sector [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].