无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Weifu High-Technology Group Co., Ltd.
Semi-Annual Financial Report 2018
August 2018
1
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2018-6-30
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 3,042,709,775.25 3,118,709,412.83
Settlement provisions
Capital lent
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Notes receivable 1,676,937,153.03 1,464,256,934.83
Accounts receivable 2,374,955,337.33 1,995,577,830.90
Account paid in advance 99,860,122.30 97,576,197.88
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable 1,480,250.00 2,281,979.17
Dividends receivable 546,269,615.74
Other receivables 17,839,885.07 5,214,623.41
Purchase restituted finance asset
Inventories 1,241,695,545.38 1,478,939,040.70
2
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Divided into assets held for sale
Non-current assets due within one year
Other current assets 4,586,279,800.73 3,887,997,290.53
Total current assets 13,588,027,484.83 12,050,553,310.25
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 479,236,360.00 588,142,869.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,261,256,191.08 4,140,064,825.58
Investment property 22,761,528.91 23,544,830.78
Fixed assets 2,625,557,400.23 2,584,872,628.54
Construction in progress 195,609,102.08 100,345,461.28
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 332,886,731.99 340,632,143.36
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 7,951,490.73 2,969,770.81
Deferred income tax assets 202,373,683.03 203,007,622.23
Other non-current assets 203,344,783.19 195,088,675.74
Total non-current assets 8,332,761,358.03 8,180,452,914.11
Total assets 21,920,788,842.86 20,231,006,224.36
Current liabilities:
Short-term borrowings 359,000,000.00 243,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable 1,086,240,637.65 947,976,759.10
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Accounts payable 2,596,968,053.96 2,570,956,205.83
Accounts received in advance 38,744,126.90 42,820,236.07
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 272,784,575.15 327,778,677.29
Taxes payable 94,439,018.34 93,869,690.36
Interest payable 555,009.72 401,928.43
Dividend payable 1,210,740,700.00
Other accounts payable 65,356,662.87 62,937,940.90
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Liability held for sale
Non-current liabilities due within one year 5,000,000.00 10,000,000.00
Other current liabilities
Total current liabilities 5,729,828,784.59 4,299,741,437.98
Non-current liabilities:
Long-term loans 45,000,000.00 45,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable 19,407,272.00 17,496,363.00
Long-term wages payable 30,448,132.88 30,448,132.88
Special accounts payable 18,265,082.11 18,265,082.11
Accrual liabilities
Deferred income 439,544,262.06 451,281,721.77
Deferred income tax liabilities 7,062,415.26 17,406,622.39
Other non-current liabilities
Total non-current liabilities 559,727,164.31 579,897,922.15
Total liabilities 6,289,555,948.90 4,879,639,360.13
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Including: preferred stock
Perpetual capital securities
Capital reserve 3,416,016,805.42 3,417,841,402.89
Less: Inventory shares
Other comprehensive income 28,866,874.66 87,169,455.01
Reasonable reserve 1,119,601.82 2,606.93
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 10,146,111,143.84 9,811,609,138.92
Total owners’ equity attributable to parent company 15,111,165,491.74 14,835,673,669.75
Minority interests 520,067,402.22 515,693,194.48
Total owners’ equity 15,631,232,893.96 15,351,366,864.23
Total liabilities and owner’s equity 21,920,788,842.86 20,231,006,224.36
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 2,603,443,354.29 2,460,413,190.84
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Notes receivable 418,685,069.60 449,209,323.02
Accounts receivable 1,003,118,142.78 1,047,012,889.92
Account paid in advance 58,841,677.78 52,269,971.38
Interest receivable 228,052.78 97,627.77
Dividends receivable 532,862,944.82
Other receivables 178,153,549.80 50,174,653.16
Inventories 386,390,243.97 425,577,163.53
Assets held for sale
Non-current assets due within one year
Other current assets 4,394,258,562.40 3,876,370,675.52
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Total current assets 9,575,981,598.22 8,361,125,495.14
Non-current assets:
Available-for-sale financial assets 403,296,360.00 512,202,869.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 5,052,525,076.38 4,962,522,689.49
Investment property
Fixed assets 1,560,811,227.67 1,567,315,925.73
Construction in progress 59,671,595.15 29,152,398.74
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 192,303,346.51 196,726,670.75
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 114,410,983.88 114,706,976.54
Other non-current assets 103,943,087.63 80,866,308.04
Total non-current assets 7,486,961,677.22 7,463,493,838.29
Total assets 17,062,943,275.44 15,824,619,333.43
Current liabilities:
Short-term borrowings 180,000,000.00 78,000,000.00
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable 381,906,378.48 459,762,950.78
Accounts payable 965,506,741.66 1,082,206,882.07
Accounts received in advance 11,405,762.35 12,242,442.51
Wage payable 196,370,045.34 216,598,203.73
Taxes payable 66,402,908.98 71,370,793.35
Interest payable 292,055.55 93,777.78
Dividend payable 1,210,740,700.00
Other accounts payable 13,611,772.35 9,982,668.55
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 3,026,236,364.71 1,930,257,718.77
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 16,665,236.81 16,665,236.81
Special accounts payable
Accrual liabilities
Deferred income 395,256,852.69 407,070,636.08
Deferred income tax liabilities 5,094,154.34 15,382,844.99
Other non-current liabilities
Total non-current liabilities 417,016,243.84 439,118,717.88
Total liabilities 3,443,252,608.55 2,369,376,436.65
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,488,221,286.39 3,488,221,286.39
Less: Inventory shares
Other comprehensive income 28,866,874.66 87,169,455.01
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 8,583,551,439.84 8,360,801,089.38
Total owners’ equity 13,619,690,666.89 13,455,242,896.78
Total liabilities and owner’s equity 17,062,943,275.44 15,824,619,333.43
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
3. Consolidated Profit Statement
In RMB
Item Current period Last Period
I. Total operating income 4,960,801,890.99 4,728,125,599.02
Including: Operating income 4,960,801,890.99 4,728,125,599.02
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 4,446,134,584.97 4,235,672,796.49
Including: Operating cost 3,889,590,289.69 3,736,290,938.86
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 38,000,352.40 37,862,282.48
Sales expenses 106,347,559.85 71,559,262.66
Administration expenses 413,983,378.78 399,568,734.73
Financial expenses -1,776,908.37 1,688,051.32
Losses of devaluation of asset -10,087.38 -11,296,473.56
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 1,149,033,168.39 955,437,915.36
Including: Investment income on affiliated company and joint
968,640,145.91 833,565,520.64
venture
Exchange income (Loss is listed with “-”)
Income from assets disposal(Loss is listed with “-”) 1,588,185.36 -125,780.60
Other income 14,032,459.71 15,608,007.28
III. Operating profit (Loss is listed with “-”) 1,679,321,119.48 1,463,372,944.57
Add: Non-operating income 3,881,128.87 2,784,579.48
Less: Non-operating expense 2,327,872.38 3,764,224.66
IV. Total Profit (Loss is listed with “-”) 1,680,874,375.97 1,462,393,299.39
Less: Income tax expense 102,927,297.96 94,025,933.36
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
V. Net profit (Net loss is listed with “-”) 1,577,947,078.01 1,368,367,366.03
(i) Net profit of continuous operating (Net loss is listed with “-”) 1,577,947,078.01 1,368,367,366.03
(ii) Net profit of business termination (Net loss is listed with “-”)
Net profit attributable to owners of parent company 1,545,242,704.92 1,325,922,029.56
Minority shareholders’ gains and losses 32,704,373.09 42,445,336.47
VI. Net after-tax of other comprehensive income -58,302,580.35 -39,797,212.50
Net after-tax of other comprehensive income attributable to owners
-58,302,580.35 -39,797,212.50
of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit
plan liability or asset
2. Share of the other comprehensive income of the investee
accounted for using equity method which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified
-58,302,580.35 -39,797,212.50
subsequently to profit or loss
1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising from changes in fair value of
-58,302,580.35 -39,797,212.50
available-for-sale financial assets
3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences arising on translation of foreign
currency financial statements
6.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 1,519,644,497.66 1,328,570,153.53
Total comprehensive income attributable to owners of parent
1,486,940,124.57 1,286,124,817.06
Company
Total comprehensive income attributable to minority shareholders 32,704,373.09 42,445,336.47
VIII. Earnings per share:
(i) Basic earnings per share 1.53 1.31
(ii) Diluted earnings per share 1.53 1.31
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before
combination, and realized 0 Yuan at last period for combined party
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
In RMB
Item Current period Last Period
I. Operating income 2,315,142,655.13 1,626,480,415.71
Less: Operating cost 1,698,516,522.90 1,268,622,661.58
Operating tax and extras 20,760,852.64 14,826,758.76
Sales expenses 17,030,807.96 13,791,093.39
Administration expenses 216,259,763.11 184,157,736.45
Financial expenses -5,330,079.95 -346,977.87
Losses of devaluation of asset 468,622.39 48,394.70
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 1,137,350,229.02 1,830,767,022.75
Including: Investment income on affiliated company and
894,788,126.54 767,309,765.64
joint venture
Income from assets disposal(Loss is listed with “-”) 698,843.73 -143,090.25
Other income 11,813,783.39 13,915,329.88
II. Operating profit (Loss is listed with “-”) 1,517,299,022.22 1,989,920,011.08
Add: Non-operating income 26,550.35 244,259.65
Less: Non-operating expense 989,892.95 2,088,732.14
III. Total Profit (Loss is listed with “-”) 1,516,335,679.62 1,988,075,538.59
Less: Income tax expense 82,844,629.16 47,444,108.88
IV. Net profit (Net loss is listed with “-”) 1,433,491,050.46 1,940,631,429.71
(i) Net profit of continuous operating (Net loss is listed with “-”) 1,433,491,050.46 1,940,631,429.71
(ii) Net profit of business termination (Net loss is listed with “-”)
V. Net after-tax of other comprehensive income -58,302,580.35 -39,797,212.50
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit
plan liability or asset
2. Share of the other comprehensive income of the investee
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
accounted for using equity method which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income items which will be
-58,302,580.35 -39,797,212.50
reclassified subsequently to profit or loss
1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising from changes in fair value of
-58,302,580.35 -39,797,212.50
available-for-sale financial assets
3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences arising on translation of foreign
currency financial statements
6.Other
VI. Total comprehensive income 1,375,188,470.11 1,900,834,217.21
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Current period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
4,321,753,642.57 3,437,449,626.28
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of amount from disposal financial assets that
measured by fair value and with variation reckoned into current
gains/losses
11
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 28,784,608.45 22,168,009.92
Other cash received concerning operating activities 20,879,944.10 19,713,087.22
Subtotal of cash inflow arising from operating activities 4,371,418,195.12 3,479,330,723.42
Cash paid for purchasing commodities and receiving labor
2,812,244,020.34 2,032,254,137.91
service
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 683,701,600.44 614,817,453.84
Taxes paid 342,578,412.02 325,770,301.21
Other cash paid concerning operating activities 153,970,471.84 154,087,588.94
Subtotal of cash outflow arising from operating activities 3,992,494,504.64 3,126,929,481.90
Net cash flows arising from operating activities 378,923,690.48 352,401,241.52
II. Cash flows arising from investing activities:
Cash received from recovering investment 5,361,095,457.96 3,091,512,477.03
Cash received from investment income 463,686,171.47 430,252,079.05
Net cash received from disposal of fixed, intangible and other
39,773,802.87 53,235,402.65
long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 5,864,555,432.30 3,574,999,958.73
Cash paid for purchasing fixed, intangible and other long-term
362,947,568.87 212,687,557.71
assets
Cash paid for investment 6,084,063,284.96 5,925,993,243.66
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 10,000,000.00
Subtotal of cash outflow from investing activities 6,457,010,853.83 6,138,680,801.37
12
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Net cash flows arising from investing activities -592,455,421.53 -2,563,680,842.64
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 330,000,000.00 185,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5,470,000.00
Subtotal of cash inflow from financing activities 335,470,000.00 185,000,000.00
Cash paid for settling debts 219,000,000.00 152,500,000.00
Cash paid for dividend and profit distributing or interest
9,337,888.74 17,164,736.59
paying
Including: Dividend and profit of minority shareholder paid by
174,600.00 11,958,920.00
subsidiaries
Other cash paid concerning financing activities 339,091.00 1,049,711.28
Subtotal of cash outflow from financing activities 228,676,979.74 170,714,447.87
Net cash flows arising from financing activities 106,793,020.26 14,285,552.13
IV. Influence on cash and cash equivalents due to fluctuation in
810,171.83 -3,018,810.88
exchange rate
V. Net increase of cash and cash equivalents -105,928,538.96 -2,200,012,859.87
Add: Balance of cash and cash equivalents at the period-begin 2,948,439,354.22 3,795,223,678.11
VI. Balance of cash and cash equivalents at the period-end 2,842,510,815.26 1,595,210,818.24
6. Cash Flow Statement of Parent Company
In RMB
Item Current period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
2,707,966,926.41 1,138,848,252.21
services
Write-back of tax received
Other cash received concerning operating activities 9,047,393.86 505,652,991.97
Subtotal of cash inflow arising from operating activities 2,717,014,320.27 1,644,501,244.18
Cash paid for purchasing commodities and receiving labor
1,572,426,004.69 707,951,478.67
service
Cash paid to/for staff and workers 361,672,047.87 277,978,923.53
13
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Taxes paid 242,573,191.33 133,461,523.26
Other cash paid concerning operating activities 142,557,335.52 168,294,750.99
Subtotal of cash outflow arising from operating activities 2,319,228,579.41 1,287,686,676.45
Net cash flows arising from operating activities 397,785,740.86 356,814,567.73
II. Cash flows arising from investing activities:
Cash received from recovering investment 5,174,745,373.00 2,974,601,492.00
Cash received from investment income 450,095,688.15 1,365,386,425.45
Net cash received from disposal of fixed, intangible and other
38,214,564.65 52,252,940.94
long-term assets
Net cash received from disposal of subsidiaries and other units 2,410,502.57
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 5,663,055,625.80 4,394,651,360.96
Cash paid for purchasing fixed, intangible and other long-term
187,935,182.03 61,095,071.88
assets
Cash paid for investment 5,687,713,200.00 5,617,929,258.63
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 173,000,000.00
Subtotal of cash outflow from investing activities 6,048,648,382.03 5,679,024,330.51
Net cash flows arising from investing activities -385,592,756.23 -1,284,372,969.55
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 180,000,000.00 80,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 180,000,000.00 80,000,000.00
Cash paid for settling debts 78,000,000.00 80,000,000.00
Cash paid for dividend and profit distributing or interest paying 3,391,380.55 1,637,133.32
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 81,391,380.55 81,637,133.32
Net cash flows arising from financing activities 98,608,619.45 -1,637,133.32
IV. Influence on cash and cash equivalents due to fluctuation in
761,175.27 -3,018,810.88
exchange rate
V. Net increase of cash and cash equivalents 111,562,779.35 -932,214,346.02
Add: Balance of cash and cash equivalents at the period -begin 2,454,696,969.20 2,143,377,059.99
VI. Balance of cash and cash equivalents at the period-end 2,566,259,748.55 1,211,162,713.97
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
Amount for current period
In RMB
Current period
Owners’ equity attributable to parent company
Other Provisio
Item Minority Total owners’
equity instrument Less: Other Surplus n of
Reasonable interests equity
Share capital Capital reserve Inventor comprehensiv Retained profit
Perpetual reserve reserve general
Preferre Oth y shares e income
capital
d stock er risk
securities
I. Balance at
1,008,950,570.0 3,417,841,402.8 510,100,496.0 515,693,194.4 15,351,366,864.2
the end of the 87,169,455.01 2,606.93 9,811,609,138.92
0 9 0 8 3
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterpris
e combine
under the
same control
Other
II. Balance at 1,008,950,570.0 3,417,841,402.8 510,100,496.0 515,693,194.4 15,351,366,864.2
87,169,455.01 2,606.93 9,811,609,138.92
the beginning 0 9 0 8 3
15
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
of this year
III. Increase/
Decrease in
this year -58,302,580.3
-1,824,597.47 1,116,994.89 334,502,004.92 4,374,207.74 279,866,029.73
(Decrease is 5
listed with
“-”)
(i) Total
-58,302,580.3
comprehensiv 1,545,242,704.92 32,704,373.09 1,519,644,497.66
5
e income
(ii) Owners’
devoted and -12,945,402.5
-1,824,597.47 -14,770,000.00
decreased 3
capital
1.Common
shares -12,945,402.5
-12,945,402.53
invested by 3
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
16
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
payment
4. Other -1,824,597.47 -1,824,597.47
(III) Profit -1,210,740,700.0 -15,604,600.0 -1,226,345,300.0
distribution 0 0 0
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3.
Distribution -1,210,740,700.0 -15,604,600.0 -1,226,345,300.0
for owners (or 0 0 0
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
17
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4. Other
(V)
Reasonable 1,116,994.89 219,837.18 1,336,832.07
reserve
1. Withdrawal
10,050,468.8
in the report 1,395,689.84 11,446,158.69
5
period
2. Usage in
the report 8,933,473.96 1,175,852.66 10,109,326.62
period
(VI)Others
IV. Balance at
1,008,950,570.0 3,416,016,805.4 510,100,496.0 10,146,111,143.8 520,067,402.2 15,631,232,893.9
the end of the 28,866,874.66 1,119,601.82
0 2 0 4 2 6
report period
18
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Amount for last year
In RMB
Last period
Owners’ equity attributable to parent company
Other
equity
instrument
Prov
Less
Pe ision
Item : Minority
rp
etu
Inve Other of Total owners’ equity
Reasonable interests
Share capital Pr Capital reserve ntor comprehensive Surplus reserve Retained profit
al reserve gene
efe y income
ca Ot
rre shar ral
pit he
d es
al r risk
sto
se
ck
cu
riti
es
I. Balance at the end
1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
of the last year
Add: Changes of
accounting policy
Error correction
of the last period
Enterprise
combine under the
same control
Other
II. Balance at the
beginning of this 1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
year
19
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
III. Increase/
Decrease in this year
-57,553,372.50 -86,398.26 1,965,969,148.04 44,607,096.43 1,952,936,473.71
(Decrease is listed
with “-”)
(i) Total
comprehensive -57,553,372.50 2,571,339,490.04 75,870,434.54 2,589,656,552.08
income
(ii) Owners’
devoted and 8,480,761.72 8,480,761.72
decreased capital
1.Common shares
invested by 9,520,000.00 9,520,000.00
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other -1,039,238.28 -1,039,238.28
(III) Profit
-605,370,342.00 -39,650,290.00 -645,020,632.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
20
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
provisions
3. Distribution for
owners (or -605,370,342.00 -39,650,290.00 -645,020,632.00
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4. Other
(V) Reasonable
-86,398.26 -93,809.83 -180,208.09
reserve
1. Withdrawal in the
17,947,661.67 2,379,810.36 20,327,472.03
report period
2. Usage in the
18,034,059.93 2,473,620.19 20,507,680.12
report period
(VI)Others
IV. Balance at the
end of the report 1,008,950,570.00 3,417,841,402.89 87,169,455.01 2,606.93 510,100,496.00 9,811,609,138.92 515,693,194.48 15,351,366,864.23
period
21
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
8. Statement of Changes in Owners’ Equity (Parent Company)
Amount for current period
In RMB
Current period
Other
equity
instrument Less
:
Pe
rp Inve Other
Item etu Reasonable
Share capital Pr Capital reserve ntor comprehensiv Surplus reserve Retained profit Total owners’ equity
al reserve
efe
ca Ot y e income
rre
pit he
d shar
al r
sto
se es
ck
cu
riti
es
I. Balance at the end of the last year 1,008,950,570.00 3,488,221,286.39 87,169,455.01 510,100,496.00 8,360,801,089.38 13,455,242,896.78
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1,008,950,570.00 3,488,221,286.39 87,169,455.01 510,100,496.00 8,360,801,089.38 13,455,242,896.78
III. Increase/ Decrease in this year -58,302,580.3
222,750,350.46 164,447,770.11
(Decrease is listed with “-”) 5
-58,302,580.3
(i) Total comprehensive income 1,433,491,050.46 1,375,188,470.11
5
(ii) Owners’ devoted and decreased
capital
22
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners equity
with share-based payment
4. Other
(III) Profit distribution -1,210,740,700.00 -1,210,740,700.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-1,210,740,700.00 -1,210,740,700.00
shareholders)
3. Other
(IV) Carrying forward internal owners’
equity
1. Capital reserves conversed to capital
(share capital)
2. Surplus reserves conversed to capital
(share capital)
3. Remedying loss with surplus reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 3,751,960.66 3,751,960.66
2. Usage in the report period 3,751,960.66 3,751,960.66
(VI)Others
IV. Balance at the end of the report period 1,008,950,570.00 3,488,221,286.39 28,866,874.66 510,100,496.00 8,583,551,439.84 13,619,690,666.89
23
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Amount for last year
In RMB
Last period
Other equity
Less
instrument
:
Perp Inve Other
Item Pr etua Reasonable
Share capital efe l Capital reserve ntor comprehensive Surplus reserve Retained profit Total owners’ equity
reserve
rre capi Ot y income
d tal her
sto secu shar
ck ritie es
s
I. Balance at the end of the last year 1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
III. Increase/ Decrease in this year
39,812,500.00 -57,553,372.50 2,835,157,009.59 2,817,416,137.09
(Decrease is listed with “-”)
(i) Total comprehensive income -57,553,372.50 3,001,267,943.68 2,943,714,571.18
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners equity
with share-based payment
24
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
4. Other
(III) Profit distribution -605,370,342.00 -605,370,342.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-605,370,342.00 -605,370,342.00
shareholders)
3. Other
(IV) Carrying forward internal owners’
equity
1. Capital reserves conversed to capital
(share capital)
2. Surplus reserves conversed to capital
(share capital)
3. Remedying loss with surplus reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 4,785,959.00 4,785,959.00
2. Usage in the report period 4,785,959.00 4,785,959.00
(VI)Others 39,812,500.00 439,259,407.91 479,071,907.91
IV. Balance at the end of the report period 1,008,950,570.00 3,488,221,286.39 87,169,455.01 510,100,496.00 8,360,801,089.38 13,455,242,896.78
25
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to RMB 303.4355 million.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
26
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about “Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd.” issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMB
ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,
ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,
added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB
680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCH
is the second majority shareholder of the Company.
In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting RMB 1,020,200,992 up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the
cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation
Limited Shenzhen Branch on September 16, 2015; after the cancellation of repurchase shares, the company’s
paid-up capital (capital) becomes RMB 1,008,950,570 Yuan after the change.
27
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No. 5 Huashan Road, New District, Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
The Company sets up Administration Department, Technology Centre, organization & personnel department,
Office of the Board, compliance department, IT department, Market & Strategy Department, Party-masses
Department, Finance Department, Purchase Department, Manufacturing Quality Department, MS (Mechanical
System) division, AC(Auto spare parts) division and DS (Diesel System ) division etc. and subsidiaries such as
Wuxi Weifu Leader Catalytic Converter Co., Ltd. and Nanjing Weifu Jinning Co., Ltd.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products, fuel oil system testers and equipments, manufacturing of auto
electronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaust
post-processing system; sales of the general machinery, hardware & electrical equipment, chemical products &
raw materials (excluding hazardous chemicals), auto spare parts and vehicles (excluding nine-seat passenger car);
internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. (Any projects that needs
to be approved by laws can only be carried out after getting approval by relevant authorities)
Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,
and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereof
Financial statements of the Company were approved by the Board of Directors for reporting dated 24 August
2018.
Shareholding ratio Proportion Registered Business scope Stateme
(%) of votes capital (in nt
Shortname of
Name of subsidiary (%) 10 thousand consolid
subsidiary
Directly Indirectly Yuan) ate
(Y/N)
Internal-combustion
Nanjing Weifu Jinning Co., Ltd. Weifu Jinning 80.00 -- 80.00 34,628.70 engine and Y
accessories
Wuxi Weifu Leader Catalytic Purifier and muffler
Weifu Leader 94.81 -- 94.81 50,259.63 Y
Converter Co., Ltd.
Weifu Mashan Pump Glib Co., Ltd. Internal-combustion
Weifu Mashan 100.00 -- 100.00 16,500 engine and Y
accessories
Wuxi Weifu Chang’an Co., Ltd. Weifu Chang’an 100.00 -- 100.00 21,000 Internal-combustion Y
28
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
engine and
accessories
Wuxi Weifu International Trade Co. Weifu
International 100.00 -- 100.00 3,000 Trade Y
Ltd. Trade
Wuxi Weifu ITM Supercharging Internal-combustion
Technique Co., Ltd. Weifu ITM 100.00 -- 100.00 16,000 engine and Y
accessories
Wuxi Weifu Schmidt Power System Internal-combustion
Spare Parts Co., Ltd. Weifu Schmidt 66.00 -- 66.00 7,600 engine and Y
accessories
Ningbo Weifu Tianli Supercharging Internal-combustion
Technique Co., Ltd. Weifu Tianli 54.23 -- 54.23 11,136 engine and Y
accessories
Wuxi Weifu-Autocam Fine Machinery
Weifu Autocam 51.00 -- 51.00 USD1,510 Auto parts Y
Co. Ltd.
Wuxi Weifu Leader Catalytic Weifu Leader
-- 60.00 60.00 1,000 Purifier and muffler Y
Converter (Wuhan) Co., Ltd. (Wuhan)
Weifu Leader (Chongqing) Weifu Leader Purifier and muffler
-- 100.00 100.00 2,615.17 Y
Automobile Parts Co., Ltd. (Chongqing)
Nanchang Weifu Leader Automobile Weifu Leader Purifier and muffler
-- 100.00 100.00 5,000 Note ①
Parts Co., Ltd. (Nanchang)
Note ①: Found more in 5-‘Change of consolidation scope for other reasons” in Note VIII
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance, the specific 41 accounting rules revised and issued dated 15 February 2006
and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact
sustainable operation ability of the Company within 12 months since end of the reporting period.
29
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, Auto spare parts, mufflers and purifiers etc., in line with the real operational characteristics and relevant
accounting standards, many specific accounting policies and estimation have been formulated for the transactions
and events with revenue recognized concerned. As for the explanation on major accounting judgment and
estimation, found more in Note V-28-“Other major accounting policy and accounting estimation”.
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises, which truly and completely reflected the financial information of the Company in the period,
such as financial position, operation achievements and cash flow.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
30
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
As a purchaser, fair value of the assets (equity of acquiree held before the date of purchasing included) for
purchasing controlling right from the acquiree, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the acquiree obtained in combination, recognized as goodwill if the results is
positive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of the
identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs.
After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, the
acquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost for
combination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its book
values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency of
the acquiree obtained by the Company recognized by fair value, that required identification conditions;
Acquisition date refers to the date on which the acquirer effectively obtains control of the acquiree.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an investee so as to obtain variable return through participating in the investee’s
relevant activities and the ability to affect such return by use of the aforesaid right over the investee. Relevant
activates refers to activates have major influence on return of the investee’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
deconsolidated from the date that such control ceases. All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements. For subsidiaries being
disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
31
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest, less the net assets attributable to the company since the acquisition date, is recognized as the investment
income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
acquiree directly when the control is lost, namely be transferred to current investment income other than the
relevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit scheme
by the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with
relevant accounting standards such as “Accounting Standards for business Enterprises 2 – Long-term Equity
Investments” or “Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement”.
The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
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transactions met one or more of the following situations, the transactions shall normally be accounted for as a
bundle of transactions: ①The transactions are entered into after considering the mutual consequences of each
individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal in
commercial sense; ③The occurrence of an individual transaction depends on the occurrence of one or more
individual transactions in the series; ④ The result of an individual transaction is not economical, but it would be
economical after taking into account of other transactions in the series. When the transactions are not regarded as
a bundle of transactions, the individual transactions shall be accounted as “disposal of a portion of an interest in a
subsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary which
lead to loss of control”. When the transactions are regarded as a bundle of transactions, the transactions shall be
accounted as a single disposal transaction; however, the difference between the consideration received from
disposal and the share of net assets disposed in each individual transactions before loss of control shall be
recognized as other comprehensive income, and reclassified as profit or loss arising from the loss of control when
control is lost.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations.
The company confirms the following items related to the share of interests in its joint operations, and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Determining standards for cash and cash equivalent
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held
by the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as
known amount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. Thereinto,
the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in
accordance with the actual exchange rate in the transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. Thereinto, the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.
At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are converted
in accordance with the middle rate of the market exchange rate published by the People's Bank of China on the
transaction date without changing its original recording currency amount; the foreign currency non-monetary items
measured with the fair value are converted in accordance with the middle rate of the market exchange rate
published by the People's Bank of China on the fair value date, and the generated exchange gains and losses are
included in the current profits and losses as the gains and losses from changes in fair value.
The following displays the methods for translating financial statements involving foreign operations into the
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
transaction dates. The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.
The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Classification and measurement on financial assets and financial liability
In terms of investment purposes and economic natures, the Company divides its financial assets into financial
assets( with its variation of fair value reckoned into current gains/losses), financial assets available for sale,
account receivables and held-to-maturity investments, among which, transactional financial asset is measured at
fair value and movement of its fair value is recorded in current gains and losses; financial asset available for sale
is measured at fair value and movement of its fair value is recorded in owners’ equity; account receivables and
held-to-maturity investments are measured at amortized cost.
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial
liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(2) Determination of fair values for financial assets and financial liabilities
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
The fair value refers to the price that will be received when selling an asset or the price to be paid to transfer a
liability in an orderly transaction between market participants on the date of measurement. Financial instruments
exist in an active market. Fair value is determined based on the quoted price in such market. An active market
refers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and price
fixing service organizations, representing the actual price of a market transaction that takes place in a fair deal.
While financial instruments do not exist in an active market, the fair value is determined using valuation
techniques. Valuation technologies include reference to be familiar with situation and prices reached in recent
market transactions entered into by both willing parties, reference to present fair values of similar other financial
instruments, cash flow discounting method and option pricing models.
As for the equity investment of the investee held by the Company, which has no controlling rights, common
control or significant influence (that is under the major influence), has no quota in an active market and the fair
value cannot be measure reasonably, than divided into financial assets available for sale and measured by cost.
(3) Recognition basis and measurement for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two
forms are listed as follows:
① Transfer of right for collecting cash flow of financial assets to another party;
② Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying
such cash flow to final collector
When that the Company has transferred almost all risks and remunerations arising from ownership of all or part
financial assets to another party, accordingly, recognition for such entire or part financial assets shall be ceased.
Gains and losses are determined by the received consideration less the carrying value of the transferred financial
assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’ equity
shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,
recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed as
financial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerations
attached to ownership of such financial assets, while control upon such financial assets still exists, recognition
shall be conducted in light of the degree of its continuous involvement in the transferred financial assets.
Accordingly, relevant liabilities shall be recognized.
(4) Recognition for termination of financial assets and liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued
recognition:
① Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
② Such financial assets have been transferred and meet discontinued recognition condition for financial assets as
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regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease
recognition of such financial liability or part thereof.
(5) Impairment of financial assets
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,
as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,
impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate
impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,
impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
great amount in single item and those which prove to be not impaired after separate test, the Company will
conduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records and
historical bad debts, so as to recognize impairment loss.
Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three
characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the
estimated future cash flow of such financial assets, and such influence could be reliably measured by the
Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
① Serious financial difficulty happens to issuer or debtor;
② Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
③ Creditor makes concession for debtors who experience financial trouble in light of consideration for economy
or laws;
④ Debtor is very likely to experience bankrupt or financial reorganization;
⑤ Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;
⑥ It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it
is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial
recognition and the decrease can be reliably measured by reference to the general valuation based on open data.
For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in
country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the
industry in which it belongs to is unpromising;
⑦ Material negative changes happen to technologies, markets, economy or law environment in which debtor
operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
⑧ Fair value of equity instrument investment experiences severe or non-temporary falling;
⑨ Other objective evidence indicating impairment happens to financial assets.
In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the
difference between carrying value and present value of estimated future cash flow discounted at effective interest
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rate.
After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating
value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition
of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the
carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the
reversal date on assumption that such impairment loss had not been provided.
Impairment of available-for-sale financial assets: in the event that decline in fair value of the available-for-sale
equity instrument is regarded as “severe decline” or “non-temporary decline” on the basis of comprehensive
related factors, it indicates that there is impairment loss of the available-for-sale equity instrument. In particular,
“severe decline” refers to fair value is lower than 50% of the cost price and last for over one year.
“Non-temporary decline” refers to fair value fell for over 6-month sessions.
When the available-for-sale financial assets impair, the accumulated loss originally included in the other
comprehensive income arising from the decrease in fair value was transferred out from the capital reserve and
included in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is
the balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,
current fair value and the impairment loss originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial
assets impaired and which is related to any event occurring after such recognition in subsequent periods, the
impairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-sale
equity instrument will be recognized as other comprehensive income, and the impairment loss reversal of the
available-for-sale debt instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured
reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled
by delivery of that equity instrument, then it will not be reversed.
11. Account Receivable
(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued for
single item
Determine basis or amount standards for single The Company’s account receivables with above RMB 1 million in single item
significant amount is defined as account receivables with significant amount in single item.
In line with the difference of present value of future cash flow lower its book
Withdrawal method for account with single significant
value, carried out impairment test independently and withdrawal the bad debt
amount and withdrawal single item bad debt provision
reserves
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Receivables with bad debt provision accrual by credit portfolio
Combination Bad debt provision accrual
Classify to many combination based on credit portfolio for those receivables with minor
account singly and those with major amount but has no impairment been found after testing
Age analysis method
independently; base on the actual loss ratio of the receivables of previous years, with same or
similar credit portfolio, and combining actual condition accrual bad debt reserves.
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
Account age Rate for receivables Rate for other receivables
Within 6 months
6 months to 1 year 10.00% 10.00%
1－2 years 20.00% 20.00%
2－3 years 40.00% 40.00%
Over 3 years 100.00% 100.00%
3－4 years 100.00% 100.00%
4－5 years 100.00% 100.00%
Over 5 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for withdrawal single item bad The present value of future cash flow has major difference with the receivable group’s
debt provision present value of future cash flow
Withdrawal method for bad debt Carried out impairment test independently, accrual bad debt reserves according to the
provision difference of present value of future cash flow lower its book value
12. Inventories
Dose the Company need to comply with disclosure requirements of the special industry
No
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventories
A. Generally, stock materials are calculated at planned cost. Material cost difference is individually set according
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
to classification of grant types. Pursuant to the difference between the planned cost of the received or delivered
raw materials and the material cost the aforesaid cost should share after carrying forward at period-end, the
Company adjusts the planned cost to effective cost; finished products are priced at effective costs, and carried
forward to operating cost by weighted average method when being delivered;
B. Products in process are priced at effective costs, and carried forward to finished products at actually occurred
cost;
C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weighted
average method; external purchase goods (from import and export trades) are carried forward to sales cost by
individual pricing method.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of
overall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs of
inventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant to
categories.
As for finished goods, commodities and materials available for direct sales, their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production, their net realizable values are determined by the estimated selling
prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
13. Classified as assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction, the
non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur,
that is, the Company has made resolution on the selling plan and obtained definite purchase commitment, the
selling is estimated to be completed within one year. Those assets whose disposal is subject to approval from
relevant authority or supervisory department under relevant requirements are subject to that approval.
Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or
not the Company retains part equity investment after such disposal, investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale,
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.
The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties, which sets out certain major terms relating to transaction price, time and adequately
stringent punishment for default, which render an extremely minor possibility for material adjustment or
revocation of the agreement.
Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss and
recorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill in
the disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases, the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted. If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be
restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale, with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
not be reverted.
The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized,
and the debt interests and other fees in the disposal group held for sale continue to be recognized.
If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale, they will be measured at the lower of the following:
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(I) The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation, amortization or impairment that should have been recognized given they are not classified as held
for sale;
(II) The recoverable amount.
14. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint
control or significant influence over the investee. Long-term equity investment without control or joint control or
significant influence of the Group is accounted for as available-for-sale financial assets or financial assets
measured at fair value with any change in fair value charged to profit or loss.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
①For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital, the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For business
combination resulted in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions will
be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional
consideration paid for further share acquisition on the date of combination shall offset against the capital reserve.
If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive income
recognized as a result of the previously held equity investment accounted for using equity method on the date of
combination or recognized for available-for-sale financial assets will not be accounted for.)
②For a long-term equity investment acquired through a business combination involving enterprises not under
common control, the initial investment cost of the long-term equity investment shall be the cost of combination on
the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,
liabilities incurred or borne and equity securities issued. (For business combination resulted in an enterprise not
under common control by acquiring equity of the acquire under common control through a stage-up approach with
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”. If
they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining
control. If they are not belong to “transactions in a basket”, the initial investment cost of the long-term equity
investment accounted for using cost method shall be the aggregate of the carrying amount of equity investment
previously held by the acquire and the additional investment cost. For previously held equity accounted for using
equity method, relevant other comprehensive income will not be accounted for. For previously held equity
investment classified as available-for-sale financial asset, the difference between its fair value and carrying
amount, as well as the accumulated movement in fair value previously included in the other comprehensive
income shall be transferred to profit or loss for the current period.) plus the combination cost measured by costs
which have directly connection with acquisition are considered as initial investment cost of such long-term equity
investment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the
party being combined as at the combination date are all measured at fair values, without consideration to amount
of minority interests. The surplus of combination cost less fair value net realizable assets of the party being
combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains and
losses.
③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on investee, the investment shall use cost method for measurement.
②Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the investee are accounted for using equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no adjustment
shall be made to the initial investment cost. Where the initial investment cost is less than the investor’s interest in
the fair value of the investee’s identifiable net assets at the acquisition date, the difference shall be charged to
profit or loss for the current period, and the cost of the long term equity investment shall be adjusted accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the investee, respectively.
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying amount of
long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend distributed by
the investee. In respect of the other movement of net profit or loss, other comprehensive income and profit
distribution of investee, the carrying value of long-term equity investment shall be adjusted and included in the
capital reserves. The Group shall recognize its share of the investee’s net profits or losses based on the fair values
of the investee’s individual separately identifiable assets at the time of acquisition, after making appropriate
adjustments thereto. In the event of inconformity between the accounting policies and accounting periods of the
investee and the Company, the financial statements of the investee shall be adjusted in conformity with the
accounting policies and accounting periods of the Company. Investment gain and other comprehensive income
shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint
ventures in which the assets disposed of or sold are not classified as operation, the share of unrealized gain or loss
arising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investment
gain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions between
the Group and an investee is not eliminated to the extent that the loss is impairment loss of the transferred assets.
In the event that the Group disposed of an asset classified as operation to its joint ventures or associates, which
resulted in acquisition of long-term equity investment by the investor without obtaining control, the initial
investment cost of additional long-term equity investment shall be the fair value of disposed operation. The
difference between initial investment cost and the carrying value of disposed operation will be fully included in
profit or loss for the current period. In the event that the Group sold an asset classified as operation to its
associates or joint ventures, the difference between the carrying value of consideration received and operation
shall be fully included in profit or loss for the current period. In the event that the Company acquired an asset
which formed an operation from its associates or joint ventures, relevant transaction shall be accounted for in
accordance with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or
loss related to the transaction shall be accounted for.
The Group’s share of net losses of the investee shall be recognized to the extent that the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of the investor’s net
investment in the investee are reduced to zero. If the Group has to assume additional obligations, the estimated
obligation assumed shall be provided for and charged to the profit or loss as investment loss for the period. Where
the investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits after
setting off against the share of unrecognized losses.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
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④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note III.- 6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method, other comprehensive income measured and reckoned under equity
method or financial instrument before control of the investee unit acquired shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis at
the time of disposal and shall be transferred to profit or loss for the current period on pro rata basis; among the net
assets of investee unit recognized by equity method (excluding net profit or loss, other comprehensive income and
profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparing
separate financial statements, the remaining equity interest which can apply common control or impose significant
influence over the investee after disposal shall be accounted for using equity method. Such remaining equity
interest shall be treated as accounting for using equity method since it is obtained and adjustment was made
accordingly. For remaining equity interest which cannot apply common control or impose significant influence
over the investee after disposal, it shall be accounted for using the recognition and measurement standard of
financial instruments. The difference between its fair value and carrying amount as at the date of losing control
shall be included in profit or loss for the current period. In respect of other comprehensive income recognized
using equity method or the recognition and measurement standard of financial instruments before the Group
obtained control over the investee, it shall be accounted for in accordance with the same accounting treatment for
direct disposal of relevant asset or liability by investee at the time when the control over investee is lost.
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution under net asset of investee accounted for and recognized using equity method) shall be transferred to
profit or loss for the current period at the time when the control over investee is lost. Of which, for the remaining
equity interest after disposal accounted for using equity method, other comprehensive income and other owners’
equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for using
the recognition and measurement standard of financial instruments, other comprehensive income and other
owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over investee due to partial disposal of equity
investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition
and measurement standard of financial instruments. The difference between its fair value and carrying amount as
at the date of losing common control or significant influence shall be included in profit or loss for the current
period. In respect of other comprehensive income recognized under previous equity investment using equity
method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee at the time when equity method was ceased to be used. Movement of other owners’
equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investee
accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at
the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction
shall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The
difference between the disposal consideration for each transaction and the carrying amount of the corresponding
long-term equity investment of disposed equity interest before loss of control shall initially recognized as other
comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-20-”impairment of long-term investment”
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an investee, but to fail to control or joint control the formulation of such policies together with other parties.
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While recognizing whether have significant influence by investee, the potential factors of voting power as current
convertible bonds and current executable warrant of the investee held by investors and other parties shall be thank
over.
15. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to Note V-20-“Impairment of
long-term assets”
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a service life excess
one year and has more unit value.
(2) Depreciation methods
Categories Method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5 2.71~4.75
Machinery equipment Straight-line depreciation 10 5 9.50
Transportation equipment Straight-line depreciation 4~5 5 19.00~23.75
Electronic and other equipment Straight-line depreciation 3～10 5 9.50～31.67
As for the fixed assets with impairment accrual, calculated depreciation amount based on the accumulative
number of impairment of fixed assets accrual.
(3) Recognization basis, valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:
① Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
lease commencement date), the ownership of lease fixed assets can be transferred to the Company after the expiry
of the lease period;
② The Company has the option to purchase or lease the fixed assets, and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options, so whether the Company will
exercise the option can be reasonably determined on the lease commencement date;
③ Even though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of
the lease fixed assets;
④ The present value of the Company’s of minimum lease payment on the lease commencement date is
equivalent to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present
value of the leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of
the fair value of the lease fixed assets on the lease commencement date;
⑤ The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.
(4) The impairment test method of fixed assets and the method of provision for impairment see Note V-20-“Long
term asset impairment”.
17. Construction in process
From the date on which the fixed assets built by the Company come into an expected usable state, the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.
The basis of provision for impairment of properties held for construction in process is referred to Note
V-20-“Impairment of long-term assets”
18. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
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(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such
assets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets, investment real estate and inventory are
interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the
acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
19. Intangible assets
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
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② Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized evenly with the shortest terms among expected useful life, benefit years regulated in the
contract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs and
current gains/losses according to the benefit object.
As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.
Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note
V-20-“Long-term assets impairment”.
(2) Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
① It is technically feasible that the intangible asset can be used or sold upon completion;
② there is intention to complete the intangible asset for use or sale;
③ The products produced using the intangible asset has a market or the intangible asset itself has a market;
④ there is sufficient support in terms of technology, financial resources and other resources in order to complete
the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤ the expenses attributable to the development phase of the intangible asset can be measured reliably.
If the expenses incurred during the development phase did not qualify the above mentioned conditions, such
expenses incurred are accounted for in the profit or loss for the current period. The development expenditure
reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet, and shall be transfer as intangible assets
since such item reached its expected conditions for service.
20. Impairment of long-term asset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
non-current non-financial assets such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled
entities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall
be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
beyond working conditions will be tested for impairment annually, regardless of whether there is any indication of
impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
impairment provision will be made according to the difference and recognized as an impairment loss. The
recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
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future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,
including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the
asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over
the course of continued use and final disposal is determined as the amount discounted using an appropriately
selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it
is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the restorable value.
21. Long-term Deferred Expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.
22. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfares occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
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insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
specified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier. The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the
employees who retire before schedule from the date on which the employees stop rendering services to the
scheduled retirement date, shall be recognized (as compensation for termination of employment) in the current
profit or loss by the Group if the recognition principles for provisions are satisfied.
(4)Accounting for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the
employees satisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans,
and the defined benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan
assets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the supplementary
retirement benefits (including the service costs of the current period, the previous service costs, and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes
generated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other
consolidated income.
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23. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
24. Revenue
Dose the Company need to comply with disclosure requirements of the special industry
No
(1) Concrete judging criteria for time of recognized
The major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retains the
continued management right generally related to ownership, nor exercise effective control over the sold products;
the relevant economic benefits are probable to flow into the Company; the relevant income and costs can be
measured reliably.
Concrete judging criteria for time of recognized the income from goods sales:
The Company's domestic sales revenue recognition time: The company delivers goods as agreed, checks the goods
that the buyers have received and inspected during the period of the last reconciliation date and this reconciliation
date with the buyers on the reconciliation date as agreed, and transfers the risks and remunerations to the buyers
after checking, the Company issues the invoices to the buyers in accordance with the recognized varieties,
quantities and amounts and affirms the sales revenue realization on the reconciliation date.
The Company's overseas sales revenue recognition time: After checking by the customs, the Company affirms the
sales revenue realization according to the date of departure on the customs declaration.
(2) Recognition of revenue of assets using right alienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit
can flow into the Company, and the amount of revenue can be measured reliably, revenue measured by the follow:
① Interest income amount: calculated and determined in accordance with the time that others use the enterprises
cash and the actual interest rate.
② Royalty revenue amount: calculated and determined in accordance with the charging time and method of the
relevant contract or agreement as agreed.
The basis that the Company confirms the revenue from transferring the right to use assets.
Rental income: the revenue realization is confirmed after collecting the rent on the date as agreed in the rental
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
contract (or agreement). For the rent not received on the date as agreed in the contract or agreement but can be
received, and of which the amount of revenue can be measured reliably can also be recognized as revenue.
(3) When confirming the incomes of labor services and construction contracts according to the percentage of
completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service revenue is
determined and recognized by adopting the percentage of completion method. The completion progress of service
transaction is determined by the proportion of incurred costs in the estimated total cost.
The total service revenue is determined by the received or receivable contract or agreement costs, except that the
received or receivable contract or agreement costs are not fair. On the balance sheet date, the service revenue of the
current period is determined by multiplying the total service revenue by the completion progress and deducting
the amount accumulated in the previous accounting period and confirmed to render the service revenue.
Meanwhile, the labor costs of the current period are carried forward by multiplying the total estimated costs of
labor services by the completion progress and deducting the amount accumulated in the previous accounting
period with confirmed service costs.
For the service transaction results cannot be estimated reliably on the balance sheet date, respectively dispose as
following circumstances:
①The incurred labor costs estimated to be compensated are confirmed to render the service revenue according to
the incurred labor costs, and are carried forward by the equivalent amount.
②The incurred labor costs estimated not to be compensated are reckoned in the current profits or losses, and are
not confirmed to render the service revenue.
25. Government Grants
(1) Determination basis and accounting for government grants related to assets
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
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(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into current
gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period, than
recognized deferred income, and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred, than reckoned into current
gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
(2) Determination basis and accounting for government grants related to income
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. Measured by nominal amount if the fair value can not be reliably acquired.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and should be reckoned into
current gain/loss according to the depreciation process of the use of such assets life.
A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or
loss over the useful life of the asset.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
26. Deferred tax assets / deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations, different between tax base and its book
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods, deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income, then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses, excluding the follow income tax:
①Enterprise combination;
②Transactions or events recognized in owner’s equity directly
27. Lease
(1) Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct costs
55
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
incurred by the Company shall be reckoned into value of assets lease-in.
Finance leased assets: on the lease commencement date, the company affirms the balance among the finance lease
receivables, the sum of unguaranteed residual value and its present value as the unrealized financing income, and
recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to the
rental transaction, the company reckons in the initial measurement of the finance lease receivables, and reduces
the amount of income confirmed in the lease term.
28. Other important accounting policy and accounting estimation
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,
the Company needs to judge, estimate and assume the book value of the report items cannot be accurately
measured. These judgments, estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors, which shall impact the reported amounts of
income, expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
However, the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of
continuing operations, the changes in accounting estimates only affect the current period, of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods, of which the impacts are recognized in the current and future periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate
and assume are as follows:
(1) Provision for bad debts
According to the accounting policies of the accounts receivable, the Company adopts the allowance method to
calculate the bad debt losses. The impairment of receivables is based on the assessment to the collectability of the
accounts receivable. The impairment of accounts receivable requires the management’s judgments and estimates.
The actual results and the differences between the previously estimated results shall affect the book value of
accounts receivable and the provision or return of the receivables’ bad debt reserves during the period estimated to
be changed.
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Held-to-maturity investments
56
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
The Company classifies the non-derivative financial assets that meet the requirements, have the fixed or
ascertainable repayment amount and fixed due date, and that the Company has the positive intention and ability to
hold to maturity as the held-to-maturity investment. This classification involves a lot of judgments. In the process
of making the judgments, the Company will evaluate its willingness and ability to this held-to-maturity investment.
Except in certain cases (such as the investments with insignificant sales amount when the maturity date comes), if
the Company fails to hold these investments till the maturity date, then all the investments shall be reclassified to
the available-for-sale financial assets which cannot be classified as the held-to-maturity investments in this fiscal
year and the next two fiscal years. This kind of case may have a significant impact on the relevant financial assets
value listed on the financial statements, and may affect the Company's financial instruments risk management
strategy.
(4) Impairment of held-to-maturity investments
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments. The objective evidences of impairment include that the issuer has serious financial difficulties so that
the financial assets cannot continue to be traded in an active market, or cannot be able to fulfill the contract terms
(for example, breach the contract of paying the interests or principal), etc. In the process of making the judgments,
the Company needs to evaluate the impact of the objective evidence of impairment to the expected future cash
flows of the investment.
(5) Impairment of financial assets available for sale
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments and assumptions so as to determine whether it is needed to affirm its impairment loss in the profit
statement. In the process of making the judgments and assumptions, the Company needs to evaluate the extent and
duration when the fair value of the investment is less than the cost, as well as the financial situation and short-term
business prospects of the investees, including the industry conditions, technological change, credit rating, default
rates, and risks of the counterparty.
(6) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
the output, price, and related operating expenses of the asset (or asset group) and the discount rate used for
calculating the present value. When estimating the recoverable amount, the Company shall adopt all the relevant
57
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
information can be obtained, including the prediction related to the output, price, and related operating expenses
based on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.
When estimating the present value of the future cash flow, the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group, and select the proper discount rate to determine the
present value of the future cash flows.
(7) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.
The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(8) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have some
uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs to
get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimated
amount, the difference shall have an impact on its current and deferred income taxes during the final identification
period.
(9) Early retirement benefits and supplementary retirement benefits
The expenses of the Company's early retirement benefits and supplementary retirement benefits and the amount of
liabilities are determined in accordance with various assumptions. These assumptions include the discount rate,
the average growth rate of health care costs, the subsidy growth rate of the early retired personnel and retirees and
the other factors. The differences between the actual results and assumptions will be immediately identified and
included in the costs of the current year. Although the management thought the reasonable assumptions have been
adopted, the changes in the actual experience and assumed conditions will impact the costs and liability balances
of the Company's internal early retirement benefits and supplementary retirement benefits.
29. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
30. Other
Nil
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
Tax rate of 17%/16%, 11%/10%, 6% and 5%, rate for exported commodities is stipulated by
VAT Taxable income the state with declaration of export tax rebate, rate of tax may be “exempted, credited and
refunded”
City maintaining Turnover tax
7%
& construction tax payable
Corporation
Taxable income 25%、15%
income tax
Educational surtax Turnover tax
5%
payable
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Weifu Mashan, Weifu Chang’an, Weifu International Trade, Weifu ITM, Weifu Schmidt, Weifu Leader
25%
(Wuhan), Weifu Leader (Chongqing), Weifu Leader (Nanchang)
2. Tax preference
On 17 November 2017, the Company got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732000007. Corporate income tax of the
Company shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 27 December 2017, Weifu Jinning got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732004010. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Leader got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001828. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 29 November 2017, Weifu Tianli got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Bureau of Ningbo, Department of Finance of Ningbo, Ningbo Office, SAT and Ningbo, Zhejiang
Provincial Local Taxation Bureau, certificate No.: GR201733100363. Corporate income tax of the Weifu Tianli
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Autocam got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001043. Corporate income tax of the
Weifu Autocam shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Cash on hand 594,764.72 736,773.22
Cash in bank 2,941,916,050.54 3,027,702,581.00
Other monetary fund 100,198,959.99 90,270,058.61
Total 3,042,709,775.25 3,118,709,412.83
Other explanation
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of
potential recovery risks arising from pledge, mortgage or frozen:
Item 2018-06-30 2017-12-31
Bank acceptance bill, L/C and other collateral 99,317,091.42 89,623,690.04
Frozen dividend 881,868.57 646,368.57
Total 100,198,959.99 90,270,058.61
Other note:
The frozen dividend of RMB 881,868.57 represents the part of dividends distributed by SDEC Power (stock code:
600841) and Miracle Automation (stock code: 002009) in 2017 and 2018 held by the Company as financial assets
available for sale. According to the notices numbered Yue 03MC [2016]2490 and Yue 03MC [2016]2492 served
by Guangdong Shenzhen Intermediate People’s Court, these dividends were frozen.
2. Note receivables
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 1,605,304,038.52 1,399,006,661.54
Commercial acceptance bill 71,633,114.51 65,250,273.29
Total 1,676,937,153.03 1,464,256,934.83
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Bank acceptance bill 389,454,825.85
Total 389,454,825.85
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 552,021,420.12
Total 552,021,420.12
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end:
Nil
3. Accounts receivable
(1) Accounts receivable by category:
In RMB
Closing balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Types Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Receivables with bad
2,006,9
debt provision 2,389,03 14,082,1 2,374,955 11,359,20 1,995,577,8
99.93% 0.59% 37,035. 99.90% 0.57%
accrual by credit 7,510.65 73.32 ,337.33 4.21 30.90
11
portfolio
Accounts with single
significant amount
1,594,67 1,594,67 1,935,1 1,935,107
and bad debts 0.07% 100.00% 0.10% 100.00%
8.10 8.10 07.25 .25
provision accrued
individually
2,008,8
2,390,63 15,676,8 2,374,955 13,294,31 1,995,577,8
Total 100.00% 0.66% 72,142. 100.00% 0.66%
2,188.75 51.42 ,337.33 1.46 30.90
36
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Sub item of within one year
Within 6 months 2,307,180,116.48
6 months to 1 year 64,424,536.74 6,442,453.69 10.00%
Subtotal of within 1 year 2,371,604,653.22 6,442,453.69
1-2 years 10,503,584.81 2,100,742.93 20.00%
2-3 years 2,317,159.87 926,863.95 40.00%
Over 3 years 4,612,112.75 4,612,112.75 100.00%
Total 2,389,037,510.65 14,082,173.32 0.59%
Explanation on combination determines:
Excluding the account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 2,905,380.31 Yuan; the amount collected or switches back amounting to 512,580.00 Yuan.
Important bad debt provision collected or switch back: Nil
The bad-debt provisions transferred back in the current period are mainly the bad-debt provisions counting and drawing at the end of
the prior period were withdrawn by means of monetary fund and banknotes in the current period;
(3) Account receivable actual charge off in the period
In RMB
Item Amount written off
Other small companies 10,260.35
Major written-off for the major receivable:
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(4) Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 1,282,384,362.70 Yuan, takes
53.64 percent of the total account receivable at period-end, bad debt provision accrual correspondingly at
period-end amounting as 3,325,257.94 Yuan.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
4. Advance payment
(1) Advance payment by age
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within one year 91,326,612.65 91.46% 94,641,350.21 96.99%
1-2 years 8,119,187.54 8.13% 2,550,321.91 2.61%
2-3 years 291,797.54 0.29% 319,185.79 0.33%
Over 3 years 122,524.57 0.12% 65,339.97 0.07%
Total 99,860,122.30 -- 97,576,197.88 --
Explanation on reasons of failure to settle on important advance payment with age over one year: Nil
(2) Top 5 advance payment at ending balance by prepayment object
Total period-end balance of top five advance payment by prepayment object amounted to 43,603,202.61 Yuan,
takes 43.66 percent of the total advance payment at period-end.
5. Interest receivable
(1) Category
In RMB
Item Closing balance Opening balance
Time deposit 1,480,250.00 2,281,979.17
Total 1,480,250.00 2,281,979.17
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Major overdue interest
Nil
6. Dividends payable
(1) Dividends payable
In RMB
Item (or invested unit) Closing balance Opening balance
RBCD 303,884,540.74
Zhonglian Automobile Electronic Co., Ltd. 239,400,000.00
Shanghai CD Dengtong Equity Investment 2,985,075.00
Total 546,269,615.74
(2) Important dividends payable with account age over one year
Nil
7. Other accounts receivable
(1) Other accounts receivable by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single significant 2,775,55 2,775,55 2,775,5 2,775,552
11.93% 100.00% 25.60% 100.00%
amount and 2.63 2.63 52.63 .63
withdrawal bad debt
provision separately
Other receivables
with bad debt 20,492,4 2,652,60 17,839,88 8,067,4 2,852,842 5,214,623.4
88.07% 12.94% 74.40% 35.36%
provision accrual by 91.25 6.18 5.07 66.20 .79 1
credit portfolio
23,268,0 5,428,15 17,839,88 10,843, 5,628,395 5,214,623.4
Total 100.00% 23.33% 100.00% 51.91%
43.88 8.81 5.07 018.83 .42 1
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
√ Applicable □ Not applicable
In RMB
Closing balance
Account receivable(units)
other receivable Bad debt reserve Accrual ratio Reasons
American HESS 1,514,671.20 1,514,671.20 100.00% Bankruptcy
Nanjing Jinning Machinery Factory 1,260,881.43 1,260,881.43 100.00% Un-recyclable
Total 2,775,552.63 2,775,552.63 -- --
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Sub item of within one year
Within 6 months 17,570,796.64
6 months to one year 142,703.03 14,270.30 10.00%
Subtotal within one year 17,713,499.67 14,270.30
1-2 years 19,594.63 3,918.93 20.00%
2-3 years 208,300.00 83,320.00 40.00%
Over 3 years 2,551,096.95 2,551,096.95 100.00%
Total 20,492,491.25 2,652,606.18 12.94%
Explanations on combination determine:
Explanations on combination determine: Excluding the other account receivable accrual impairment provision
separately; based on actual loss ratio of the receivable groups that owes same or similar risk features, which has
classify by age in previous years, determine accrual ratio for bad debt provision combine with real condition.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 18,392.08Yuan; the amount collected or switches back amounting to 218,628.69 Yuan.
The major switch back or collected of the bad debt provision in the Period: Nil
The bad-debt provisions transferred back in the current period are mainly the bad-debt provisions counting and drawing at the end of
the prior period were withdrawn by means of banknotes in the current period;
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(3) Other receivables actually written-off during the reporting period
Nil
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 13,940,315.41 4,883,788.59
Cash deposit 3,534,058.10 3,457,080.65
Staff loans and petty cash 5,342,707.17 2,099,504.91
Other 450,963.20 402,644.68
Total 23,268,043.88 10,843,018.83
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending Ending balance of
Company Nature Age balance of other
balance bad bet provision
receivables
Intercourse Within 6
Baodun (Tianjin) Electrical Co., Ltd. 10,000,000.00 42.98%
funds of unit months
Ningbo Jiangbei High-Tech Industry
Performance
Park Development Construction Co., 1,767,000.00 Over 3 years 7.59% 1,767,000.00
bond
Ltd.
Advance
Specific
American HESS payment 1,514,671.20 6.51% 1,514,671.20
identification
transfer-in
Intercourse Specific
Nanjing Jinning Machinery Factory 1,260,881.43 5.42% 1,260,881.43
funds of unit identification
Nanjing Yinkun Tongchang Assets Intercourse Within 6
883,610.10 3.80%
Management Co., Ltd. funds of unit months
Total -- 15,426,162.73 -- 66.30% 4,542,552.63
(6) Account receivables related to government subsidies
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
8. Inventory
(1) Inventory classification
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 440,849,100.13 81,123,527.46 359,725,572.67 444,304,506.71 83,879,268.03 360,425,238.68
Goods in process 161,751,574.16 15,483,517.38 146,268,056.78 198,648,407.88 15,483,517.38 183,164,890.50
Finished goods 894,902,092.67 159,200,176.74 735,701,915.93 1,098,294,008.21 162,945,096.69 935,348,911.52
Total 1,497,502,766.96 255,807,221.58 1,241,695,545.38 1,741,246,922.80 262,307,882.10 1,478,939,040.70
(2) Inventory depreciation reserve
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Accrual Other Switch back or write-off Other
Raw materials 83,879,268.03 1,300,000.00 4,055,740.57 81,123,527.46
Goods in process 15,483,517.38 15,483,517.38
Finished goods 162,945,096.69 3,744,919.95 159,200,176.74
Total 262,307,882.10 1,300,000.00 7,800,660.52 255,807,221.58
① Net realizable value of the inventory refers to: during the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed, sales price estimated and relevant
taxes.
② Accrual basis for inventory depreciation reserve:
Item Accrual basis for inventory impairment Specific basis for recognization
provision
Materials on The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost
hand manufactured, its net realizable value is what will happen, estimated sales expenses and relevant taxes till
lower than the book value the goods completed
Goods in process The goods in process sold due to finished Results from the estimated sale price of such inventory less the cost
goods manufactured, its net realizable value what will happen, estimated sales expenses and relevant taxes till
is lower than the book value the goods completed
Finished goods its net realizable value is lower than the Results from the estimated sale price less the vary taxes which shall
book value be taken in process of sales
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
③Reasons of switch-back for inventory falling price reserves:
Item Reasons of switch-back
Materials on hand The market price for the materials for selling soaring in the Period, thus switch-back in the inventory falling
price reserves which was accrual
④Reasons of write-off for inventory falling price reserves:
Item Reasons of write-off
Materials on hand Used for production and the finished goods are realized sales
Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
Finished goods Sales in the Period
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without unsettlement from construction contract at period-end
Nil
9. Other current assets
In RMB
Item Closing balance Opening balance
Entrust financing products 4,549,580,000.00 3,841,320,000.00
Receivable export tax rebates 15,440,435.90 14,289,026.22
Prepaid taxes and VAT retained 19,725,423.93 25,338,518.05
Input tax to be deducted and certification 1,090,087.75 2,568,145.27
Other 443,853.15 4,481,600.99
Total 4,586,279,800.73 3,887,997,290.53
10. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Instrument equity
518,669,466.95 59,433,106.95 459,236,360.00 469,495,975.95 59,433,106.95 410,062,869.00
available for sale:
Measured by fair 178,332,264.00 178,332,264.00 266,376,600.00 266,376,600.00
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
value
Measured by cost 340,337,202.95 59,433,106.95 280,904,096.00 203,119,375.95 59,433,106.95 143,686,269.00
Other -- financial
20,000,000.00 20,000,000.00 178,080,000.00 178,080,000.00
products
Total 538,669,466.95 59,433,106.95 479,236,360.00 647,575,975.95 59,433,106.95 588,142,869.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument debt
Type Total
available for sale available for sale
Cost /liability of equity instrument/ amortization cost of debt
144,371,235.00 144,371,235.00
instrument
Fair value 178,332,264.00 178,332,264.00
Amount of fair value changes that accumulatively reckoned in
33,961,029.00 33,961,029.00
other comprehensive gains
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-hol Cash
The invested
Period-begin Period-beginni Incre Decr ding in divid
entity Increased Decreased Period-end Period-end
ning ng ased eased invested end
entity
Guolian 12,000,000.
12,000,000.00 0.95%
Securities 00
Guangxi
1,600,000.0
Liufa Co., 1,600,000.00 1,600,000.00 1,600,000.00 1.22%
0
Ltd.
Financial
Company of
Changchai 800,000.00 800,000.00 800,000.00 800,000.00
Group Co.,
Ltd.
HEJUN
33,000,000.
VANGUAR 33,000,000.00 33,000,000.00 33,000,000.00 11.72%
00
D GROUP
Nanjing 1,000,000.0 1,000,000.00 1,000,000.00 1,000,000.00 1.85%
69
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Hengtai 0
Insurance
and Broker
Co., Ltd.
Henan
Gushi
Weining Oil 2,033,106.9
2,033,106.95 2,033,106.95 2,033,106.95
Pump & 5
Nozzle Co.,
Ltd.
Beijing
Zhike
Industrial
86,940,000.
Investment 86,940,000.00 11,000,000.00 11,000,000.00 12.66%
00
Holding
Group Co.,
Ltd.(Note)
Wuxi
Xidong
Technologic 5,000,000.0
5,000,000.00 1.43%
al Industry 0
Park Co.,
Ltd.
Shanghai
IMS
Automotive 10,000,000.
10,000,000.00 10,000,000.00 10,000,000.00 12.27%
Electronic 00
System Co.,
Ltd.
Shanghai
CD
Dengtong 50,746,269.
14,925,373.00 35,820,896.00 14.93%
Equity 00
Investment
Fund
Protean
152,143,2
Holdings 152,143,200.00
00.00
Corp.
203,119,375. 152,143,2
Total 14,925,373.00 340,337,202.95 59,433,106.95 59,433,106.95 --
95 00.00
The 15th meeting of the eighth board of directors of the company reviewed and approved the Proposal on Foreign
70
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Investment. The company will invest 30 million US dollars in the E-round preferred stock issued by Protean and
the two parties will establish a Sino-foreign joint venture in China. According to the investment cooperation
agreement, the company paid the initial investment of 24 million US dollars on May 21, 2018. The company
obtained the equity certificate of subscribing 10,212,765 shares of E-round preferred stock issued by Protean and
became a shareholder of the Protean E-round preferred stock with the equity certificate number of Number E-1.
(4) Changes of impairment in Period
In RMB
Instrument equity Instrument debt
Type Total
available for sale available for sale
Balance of impairment accrual at period-begin 59,433,106.95 59,433,106.95
Balance of impairment accrual at period-end 59,433,106.95 59,433,106.95
(5) Where the fair value of equity instruments available for sale drops significantly or not contemporarily
at period-end, without impairment provision is made
Nil
11. Long-term equity investment
In RMB
+,-
Endin
Other
Ca g
Add compr
pit Other balan
itio ehensi Impai
The invested al Investment gains equit Cash dividend or ce of
Opening balance nal ve rment Oth Closing balance
entity re recognized under y profit announced impai
inve incom accru er
du equity chan to issued rment
stm e al
cti ge provi
ent adjust
on sion
ment
I. Joint venture
Wuxi Weifu
Environment
Protection 522,882,789.26 42,852,567.41 565,735,356.67
Catalyst Co.,
Ltd.
Subtotal 522,882,789.26 42,852,567.41 565,735,356.67
II. Associated enterprise
RBCD 2,608,796,934.00 706,611,723.39 607,769,081.48 2,707,639,575.91
Zhonglian 959,036,193.36 211,952,191.28 239,400,000.00 931,588,384.64
71
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Automobile
Electronic Co.,
Ltd.
Weifu Precision
Machinery
49,348,908.96 6,943,964.90 56,292,873.86
Manufacturing
Co., Ltd.
Subtotal 3,617,182,036.32 925,507,879.57 847,169,081.48 3,695,520,834.41
Total 4,140,064,825.58 968,360,446.98 847,169,081.48 4,261,256,191.08
12. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Construction
Item House and building Land use right Total
in process
I. Original book value
1.Opening balance 63,545,325.48 63,545,325.48
2. Increased in the period
(1) Outsourcing
(2) Inventory\fixed assets\construction in process
transfer-in
(3) Increased by combination
3. Decreased in the period
(1) Disposal
(2) Other transfer-out
4.Closing balance 63,545,325.48 63,545,325.48
II. Accumulated depreciation and accumulated amortization
1.Opening balance 40,000,494.70 40,000,494.70
2. Increased in the period 783,301.87 783,301.87
(1) Accrual or amortization 783,301.87 783,301.87
3. Decreased in the period
(1) Disposal
(2) Other transfer-out
4.Closing balance 40,783,796.57 40,783,796.57
72
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
III. Depreciation reserves
1.Opening balance
2. Increased in the period
(1) Accrual
3. Decreased in the period
(1) Disposal
(2) Other transfer-out
4.Closing balance
IV. Book value
1. Ending Book value 22,761,528.91 22,761,528.91
2. Opening Book value 23,544,830.78 23,544,830.78
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
Nil
13. Fixed assets
(1) Fixed assets
In RMB
Machinery Transportation Electronic and
Item Housing buildings Total
equipment equipment other equipment
I. Original book value
1.Opening balance 1,537,881,197.20 2,214,135,391.61 40,678,767.59 423,482,779.18 4,216,178,135.58
2. Increased in the period 13,805,750.48 122,279,067.31 2,666,200.95 53,131,026.10 191,882,044.84
(1) Purchase 17,920,740.54 208,172.41 3,737,953.77 21,866,866.72
(2) Construction in process
13,805,750.48 104,358,326.77 2,458,028.54 49,393,072.33 170,015,178.12
transfer-in
(3) Increased by
combination
3. Decreased in the Period 15,081,226.35 7,279,444.18 10,203,624.37 32,564,294.90
(1) Disposal or scrapping 15,081,226.35 7,279,444.18 10,203,624.37 32,564,294.90
4.Closing balance 1,551,686,947.68 2,321,333,232.57 36,065,524.36 466,410,180.91 4,375,495,885.52
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
II. Accumulated depreciation
1.Opening balance 283,668,171.81 1,077,183,649.52 29,697,332.26 185,833,218.62 1,576,382,372.21
2. Increased in the period 25,793,559.46 84,971,976.30 1,517,629.56 29,730,334.80 142,013,500.12
(1) Accrual 25,793,559.46 84,971,976.30 1,517,629.56 29,730,334.80 142,013,500.12
3. Decreased in the Period 14,791,563.81 6,421,864.04 1,632,480.02 22,845,907.87
(1) Disposal or scrapping 14,791,563.81 6,421,864.04 1,632,480.02 22,845,907.87
4.Closing balance 309,461,731.27 1,147,364,062.01 24,793,097.78 213,931,073.40 1,695,549,964.46
III. Depreciation reserves
1.Opening balance 48,038,049.98 73,320.38 6,811,764.47 54,923,134.83
2. Increased in the period
(1) Accrual
3. Decreased in the Period 534,612.88 0.48 0.64 534,614.00
(1) Disposal or scrapping 534,612.88 0.48 0.64 534,614.00
4.Closing balance 47,503,437.10 73,319.90 6,811,763.83 54,388,520.83
IV. Book value
1. Ending Book value 1,242,225,216.41 1,126,465,733.46 11,199,106.68 245,667,343.68 2,625,557,400.23
2. Opening Book value 1,254,213,025.39 1,088,913,692.11 10,908,114.95 230,837,796.09 2,584,872,628.54
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by financing lease
Nil
(4) Fixed assets acquired by operating lease
Nil
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
Boiler room and guard house of Weifu Jinning 2,876,014.42 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 44,885,378.07 Still in process of relevant property procedures
74
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
14. Construction in progress
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
2nd Phase construction project
3,530,380.40 3,530,380.40 3,364,768.05 3,364,768.05
in industrial park
Weifu Tianli Technical
18,086,324.59 18,086,324.59 16,518,417.24 16,518,417.24
Transformation Project
Technical
transformation of parent 51,456,827.21 1,470,033.00 49,986,794.21 23,611,775.63 1,470,033.00 22,141,742.63
company
Technical
transformation of Weifu 84,307,233.92 84,307,233.92 32,705,249.53 32,705,249.53
Autocam
Other project 41,794,711.58 2,096,342.62 39,698,368.96 27,711,626.45 2,096,342.62 25,615,283.83
Total 199,175,477.70 3,566,375.62 195,609,102.08 103,911,836.90 3,566,375.62 100,345,461.28
(2) Changes of major projects under construction
In RMB
Acc
umu includi Inter
Propor lated ng: est
tion of amo interes capit
Pr Sour
Bu Fixed assets Other project unt t aliza
Opening increased in the Closing og ceof
Item dg transfer-in in decreased in invest of capital tion
balance Period balance res fund
et the Period the Period ment inter ized rate
s s
in est amoun of
budget capit t of the the
aliza year year
tion
2nd Phase
constructi
on project Oth
3,364,768.05 7,282,775.95 7,117,163.60 3,530,380.40
in er
industrial
park
75
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Weifu
Tianli
Technical Oth
16,518,417.24 1,567,907.35 18,086,324.59
Transform er
ation
Project
Technical
transforma
Oth
tion of 23,611,775.63 90,442,603.61 62,597,552.03 51,456,827.21
er
parent
company
Technical
transforma
Oth
tion of 32,705,249.53 88,909,818.12 37,307,833.73 84,307,233.92
er
Weifu
Autocam
157,380,766.1
Total 76,200,210.45 188,203,105.03 107,022,549.36 -- -- --
2
(3) The provision for impairment of construction projects
Nil
15. Intangible assets
(1) Particular about intangible assets
In RMB
Non-patent Trademark and Computer
Item Land use right Patent Total
technology trademark license software
I. Original book value
1.Opening balance 382,073,520.00 3,539,793.05 41,597,126.47 51,218,449.46 478,428,888.98
2. Increased in the period 1,181,977.78 1,181,977.78
(1) Purchase 1,181,977.78 1,181,977.78
(2) Internal R&D
(3) Increased by combination
3. Decreased in the period
(1) Disposal
4.Closing balance 382,073,520.00 3,539,793.05 41,597,126.47 52,400,427.24 479,610,866.76
II. Accumulated amortization
76
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
1.Opening balance 70,825,229.06 2,271,368.77 9,709,000.00 38,344,247.79 121,149,845.62
2. Increased in the period 4,190,708.88 176,989.86 4,559,690.41 8,927,389.15
(1) Accrual 4,190,708.88 176,989.86 4,559,690.41 8,927,389.15
3. Decreased in the period
(1) Disposal
4.Closing balance 75,015,937.94 2,448,358.63 9,709,000.00 42,903,938.20 130,077,234.77
III. Impairment provision
1.Opening balance 16,646,900.00 16,646,900.00
2. Increased in the period
(1) Accrual
3. Decreased in the period
(1) Disposal
4.Closing balance 16,646,900.00 16,646,900.00
IV. Book value
1. Ending Book value 307,057,582.06 1,091,434.42 15,241,226.47 9,496,489.04 332,886,731.99
2. Opening Book value 311,248,290.94 1,268,424.28 15,241,226.47 12,874,201.67 340,632,143.36
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0%.
(2) Land use rights without certificate of ownership
Nil
16. Goodwill
(1) Original book value of goodwill
In RMB
The invested entity or items Opening balance Increase during the period Decreased during the period Closing balance
Weifu Tianli 1,784,086.79 1,784,086.79
Total 1,784,086.79 1,784,086.79
(2) Goodwill depreciation reserves
Nil
Other note
Goodwill of the Weifu Tianli: the Company controlling and combine Weifu Tianli by increasing the capital, the
goodwill is the number that combination cost greater than the fair value of identical net assets of Weifu Tianli
77
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
17. Long-term unamortized expenses
In RMB
Item Opening balance increased in the Period Amortized in the Period Other decrease Closing balance
Remodeling costs etc. 2,969,770.81 6,075,566.34 1,093,846.42 7,951,490.73
Total 2,969,770.81 6,075,566.34 1,093,846.42 7,951,490.73
18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Bad debt reserves 20,748,735.98 3,154,735.07 18,591,825.81 2,834,842.52
Inventory falling price reserves 234,020,244.05 36,250,953.16 240,520,904.57 37,599,678.75
Fixed assets depreciation reserves 20,198,782.12 3,246,011.41 20,459,349.51 3,285,096.52
Construction in process depreciation
3,566,375.62 534,956.34 3,566,375.62 534,956.34
reserves
Intangible assets depreciation reserves 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Financial assets available for sale
10,000,000.00 1,500,000.00 10,000,000.00 1,500,000.00
depreciation reserves
Deferred income 436,541,555.15 65,499,039.14 447,676,720.31 67,151,508.04
Internal un-realized profit 29,144,718.41 5,398,961.55 28,149,575.30 4,972,350.93
Payable salary, accrued expenses etc. 531,770,116.00 81,259,345.81 526,642,684.53 81,166,909.39
Depreciation assets, amortization
16,162,648.59 3,032,645.55 9,768,298.31 1,465,244.74
difference
Total 1,318,800,075.92 202,373,683.03 1,322,022,633.96 203,007,622.23
(2) Deferred income tax liabilities un-offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation increment for
13,121,739.54 1,968,260.92 13,491,849.42 2,023,777.40
combination not under the same control
78
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Change of fair value for the financial
33,961,029.00 5,094,154.34 102,552,300.00 15,382,844.99
assets available for sale
Total 47,082,768.54 7,062,415.26 116,044,149.42 17,406,622.39
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Trade-off between the Ending balance of Trade-off between the Opening balance of
Item deferred income tax deferred income tax assets deferred income tax assets and deferred income tax assets
assets and liabilities or liabilities after off-set liabilities at period-begin or liabilities after off-set
Deferred income tax
202,373,683.03 203,007,622.23
assets
Deferred income tax
7,062,415.26 17,406,622.39
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Bad debt reserves 356,274.25 330,881.07
Inventory falling price reserves 21,786,977.53 21,786,977.53
Loss of subsidiary of Weifu ITM etc. 145,170,897.49 160,376,822.42
Fixed assets depreciation reserves 34,189,738.71 34,463,785.32
Provision for impairment of financial assets available for sale 49,433,106.95 49,433,106.95
Total 250,936,994.93 266,391,573.29
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2018 5,322,336.59 23,365,456.08 Weifu ITM and other subsidiaries have operating losses
2019 35,159,237.40 35,159,237.40 Weifu ITM and other subsidiaries have operating losses
2020 44,811,748.35 44,811,748.35 Weifu ITM and other subsidiaries have operating losses
2021 46,080,956.48 46,080,956.48 Weifu ITM and other subsidiaries have operating losses
2022 10,959,424.11 10,959,424.11 Weifu Mashan and other subsidiaries have operating losses
Weifu Leader (Wuhan) and Weifu Leader (Nanchang) have
2023 2,837,194.56
operating losses
Total 145,170,897.49 160,376,822.42 --
79
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
19. Other non-current assets
In RMB
Item Closing balance Opening balance
Engineering equipment paid in advance 203,344,783.19 195,088,675.74
Total 203,344,783.19 195,088,675.74
20. Short-term loans
(1) Types of short-term loans
In RMB
Item Closing balance Opening balance
Debt of honor 359,000,000.00 243,000,000.00
Total 359,000,000.00 243,000,000.00
Note for types of short-term loans: Nil
(2) Overdue short-term loans without payment
Nil
21. Notes payable
In RMB
Type Closing balance Opening balance
Bank acceptance 1,086,240,637.65 947,976,759.10
Total 1,086,240,637.65 947,976,759.10
Notes expired at period-end without paid was 0.00 Yuan.
22. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Within 1 year 2,443,885,021.54 2,452,140,381.86
1-2 years 74,618,775.30 43,524,905.85
2-3 years 4,528,284.50 2,318,008.01
Over 3 years 73,935,972.62 72,972,910.11
80
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Total 2,596,968,053.96 2,570,956,205.83
(2) Important account payable with account age over one year
Nil
23. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 32,550,368.42 34,272,416.20
1-2 years 4,880,699.28 7,271,092.26
2-3 years 478,964.54 346,383.11
Over 3 years 834,094.66 930,344.50
Total 38,744,126.90 42,820,236.07
(2) Important account received in advance with account age over one year
Nil
(3) Project settled without completed from construction contract at end of the period
Nil
24. Wages payable
(1) Wages payable
In RMB
Increase during Decreased during Closing
Item Opening balance
the period the period balance
I. Short-term compensation 147,444,265.93 552,717,728.57 551,598,001.98 148,563,992.52
II. Post-employment welfare- defined contribution plans 34,299,401.90 75,365,636.13 86,492,467.45 23,172,570.58
III. Dismissed welfare 3,397,642.16 2,534,994.78 862,647.38
IV. Other welfare due within one year 121,670,000.00 41,525,853.95 80,144,146.05
V. Other short-term welfare-Housing subsidies,
20,967,367.30 75,247.00 1,001,395.68 20,041,218.62
employee benefits and welfare funds
Total 327,778,677.29 628,158,611.70 683,152,713.84 272,784,575.15
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Short-term compensation
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance
1. Wages, bonuses, allowancesand subsidies 128,145,458.85 444,358,686.59 442,039,905.59 130,464,239.85
2. Welfare for workers and staff 0.00 36,510,439.50 36,510,439.50 0.00
3. Social insurance 8,642,880.67 34,717,154.89 36,349,752.03 7,010,283.53
Including: Medical insurance 6,749,035.02 27,589,802.57 28,777,883.18 5,560,954.41
Work injury insurance 1,221,106.56 4,482,888.57 4,694,772.55 1,009,222.58
Maternity insurance 672,739.09 2,644,463.75 2,877,096.30 440,106.54
4. Housing accumulation fund 1,062,011.00 30,258,592.00 30,667,173.00 653,430.00
5. Labor union expenditure and
9,593,915.41 6,872,855.59 6,030,731.86 10,436,039.14
personnel education expense
Total 147,444,265.93 552,717,728.57 551,598,001.98 148,563,992.52
(3) Defined contribution plans
In RMB
Item Opening balance Increase during the period Decreased during the period Item
1. Basic endowment insurance 17,818,243.64 63,188,840.92 67,471,461.20 13,535,623.36
2. Unemployment insurance 1,664,483.26 1,600,662.13 1,622,429.76 1,642,715.63
3. Enterprise annuity 14,816,675.00 10,576,133.08 17,398,576.49 7,994,231.59
Total 34,299,401.90 75,365,636.13 86,492,467.45 23,172,570.58
Other explanation:
1. Post-employment welfare- defined contribution plans: The Company participates in the pension insurance and
unemployment insurance plans established by government authorities by laws. Under these plans, the Company
makes monthly contribution to these plans based on 19% and 0.5% of the social insurance contribution base for
2017 respectively. Other than the aforesaid monthly contribution, the Company takes no further payment
obligation. The relevant expenditure is included in current profit or loss or cost of relevant assets when occurs.
Found more of enterprise annuity in Note XVI-4.” Annuity plan”
2. Dismiss welfare: The wages payable resulted from the implementation of inner retirement plan.
25. Tax payable
In RMB
Item Closing balance Opening balance
Value-added tax 35,720,771.51 26,675,795.24
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Enterprise income tax 48,507,346.26 53,333,508.69
Individual income tax 948,422.26 3,102,645.73
Urban maintenance and construction tax 2,089,045.74 1,873,973.56
Educational surtax 1,492,175.51 1,338,552.54
Other (including stamp tax and local funds) 5,681,257.06 7,545,214.60
Total 94,439,018.34 93,869,690.36
26. Interest payable
In RMB
Item Closing balance Opening balance
Long-term borrowing interest for installment 90,972.22 79,826.39
Interest payable for short-term loans 464,037.50 322,102.04
Total 555,009.72 401,928.43
Major overdue interest: Nil
27. Dividends payable
In RMB
Item Closing balance Opening balance
Common stock dividends 1,210,740,700.00
Total 1,210,740,700.00
Other explanation, including important dividend payables without payment over one year, and explained u-payment reasons:
Nil
28. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Closing balance Opening balance
Deposit and margin 20,194,038.96 20,977,476.26
Social insurance and reserves funds that withholding 7,139,777.20 7,689,385.68
Intercourse funds of units 31,165,472.64 25,754,545.98
Other 6,857,374.07 8,516,532.98
Total 65,356,662.87 62,937,940.90
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Total 4,500,000.00 --
29. Noncurrent liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term loans due within one year 5,000,000.00 10,000,000.00
Total 5,000,000.00 10,000,000.00
30. Long-term loans
(1) Classification of long-term loans
In RMB
Item Closing balance Opening balance
Guaranteed loan 45,000,000.00 45,000,000.00
Total 45,000,000.00 45,000,000.00
Note for classification of long-term loans: Nil
Other explanation, including interest rate interval: nil
31. Long-term account payable
(1) Listed by nature
In RMB
Item Closing balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau [note ①] 1,140,000.00 1,140,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ②] 1,250,000.00 1,250,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ③] 1,230,000.00 1,230,000.00
Loan transferred from treasury bond [note ④] 1,017,272.00 1,356,363.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑤] 2,750,000.00 2,750,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑥] 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑦] 960,000.00 960,000.00
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Hi-tech Branch of Nanjing Finance Bureau[note ⑧] 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑨] 2,740,000.00 2,740,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑩] 2,250,000.00
Total 19,407,272.00 17,496,363.00
Other explanation:
[Note ① To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 20 October 2005 to 20 October 2020. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note ②] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 20 July 2006 to 20 July 2021. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
[Note ③] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 17 September 2007 to 17 September 2022. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note ④] Loan transferred from treasury bond: Weifu Jinning received RMB1.87 million Yuan of special funds
from budget of the central government, and RMB1.73 million Yuan of special funds from budget of the local
government. The non-operating income transferred in was 1.87 million Yuan in 2011 which was confirmed not
to return, if the Company pays back special funds of 3.73 million Yuan to the local government in 11 years
since 2012, then the Company needs to repay the principal of 339,091.00 Yuan each year.
[Note ⑤] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note ⑥] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 October 2009 to 27 October 2024. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note ⑦] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 December 2010 to 27 December 2025. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note ⑧] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 28 December 2011 to 28 December 2026. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note ⑨] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 18 December 2013 to 18 December 2028. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note ⑩]: Financial support funds are the support funds provided by the management office of Nanjing Intelligent
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Manufacturing Industrial Park to encourage Weifu Jinning to enter Nanjing Intelligent Manufacturing Industrial
Park, and the allotted time is from February 11, 2018 to February 11, 2033. If the operating period in the area is
less than 15 years, the financial support funds shall be refunded.
32. Long-term employee payable
(1) Long-term employee payable
In RMB
Item Closing balance Opening balance
II. Dismiss welfare 13,782,896.07 13,782,896.07
III. Other long-term welfare 16,665,236.81 16,665,236.81
Total 30,448,132.88 30,448,132.88
(2) Change of defined benefit plans
Nil
33. Special payable
In RMB
Opening Increase during Decreased during
Item Closing balance Causes
balance the period the period
Removal compensation of subsidiary Weifu
18,265,082.11 18,265,082.11
Jinning [note ]
Total 18,265,082.11 18,265,082.11 --
Other explanation:
Note: Removal compensation of subsidiary Weifu Jinning: in line with regulation of the house acquisition decision of
People’s government of Xuanwu District, Nanjing City, Ning Xuan Fu Zheng Zi (2012) No.001, part of the lands
and property of Weifu Jingning needs expropriation in order to carry out the comprehensively improvement of
Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed
between Weifu Jinning and House Expropriation Management Office of Xuanwu District, Nanjing City, RMB
19.7067 million in total are compensate, including operation losses from lessee RMB 1.4416 million in total. The
above compensation was received in last period and is making up for the losses from lessee, and the above lands
and property have not been collected up to 30 August 2018.
34. Deferred income
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance Causes
Government grand 451,281,721.77 1,395,000.00 13,132,459.71 439,544,262.06
86
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Total 451,281,721.77 1,395,000.00 13,132,459.71 439,544,262.06 --
Item with government grants involved:
In RMB
Amount
reckoned Amount Cost Othe
Assets
New grants in in reckoned into reduction r
Item Opening balance Ending balance related/Incom
the Period non-operat other income in the chan
e related
ion in the period period ges
revenue
Industrialization
project for injection
VE pump system
Assets
with electronically
3,605,001.46 721,000.30 2,884,001.16 related/Incom
controlled high
e related
pressure for
less-emission diesel
used
Appropriation on
reforming of
production line
technology and
R&D ability of 7,100,000.00 7,100,000.00 Assets related
common rail system
for diesel by
distributive
high-voltage
Fund of industry Income
60,400,000.00 60,400,000.00
upgrade (2012) related
Fund of industry Income
60,520,000.00 60,520,000.00
upgrade (2013) related
Appropriation on
central basic
2,857,142.87 2,857,142.87 Assets related
construction
investment
R&D and
industrialization of
the high pressure
variable pump of the 9,956,904.72 9,956,904.72 Assets related
common rail system
of diesel engine for
automobile
87
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Research institute of
motor vehicle
exhaust 3,116,125.34 3,116,125.34 Assets related
aftertreatment
technology
Fund of industry Income
36,831,000.00 36,831,000.00
upgrade (2014) related
New-built assets
compensation after
170,951,302.78 11,813,783.39 159,137,519.39 Assets related
the removal of
parent company
Fund of industry Income
40,000,000.00 40,000,000.00
upgrade (2016) related
Guiding capital for
the technical reform
from State Hi-Tech 9,740,000.00 9,740,000.00 Assets related
Technical
Commission
Implementation of
the variable
cross-section 12,438,231.54 12,438,231.54 Assets related
turbocharger for
diesel engine
Demonstration
project for
1,808,806.64 880,000.00 2,688,806.64 Assets related
intelligent
manufacturing
Assets related
Other 31,957,206.42 515,000.00 597,676.02 31,874,530.40 Income
related
Total 451,281,721.77 1,395,000.00 13,132,459.71 439,544,262.06 --
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low
emissions diesel: in September 2009, Weifu Jinning signed “Project Contract of Technology Outcome
Transferring Special Capital in Jiangsu Province” with Nanjing Technical Bureau, according to which Weifu
Jinning received appropriation RMB 6.35 million in 2009, RMB 4.775 million received in 2010 and RMB 0.875
million received in 2011. According to the contract, the attendance date of this project was: from October of 2009
to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed
assets investment which are belongs to the government grand with assets/income concerned. In 2013, accepted by
the science & technology agency of Jiangsu Province, and RMB 4,789,997.04 with income related was reckoned
into current operation revenue directly; the RMB 7,210,002.96 with assets related was amortized during the
88
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
predicted service period of the assets, and RMB 721,000.30 amortized in the Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for
diesel engine use and production line technological transformation project: according to XCJ No. [2010] 59, the
Company has received special funds of 7.1 million Yuan appropriated by Finance Bureau of Wuxi New District in
2011 and used for the Company’s research and development ability of distributive high-pressure common rail
system for diesel engine use and production line technological transformation project; this appropriation belongs
to government subsidies related to assets, and will be amortized according to the depreciation process of the
underlying assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and
Document Xi Xin Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for
industry upgrading this year.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi
Xin Guan Jing Fa [2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the
Company received funds of 60.52 million Yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the
document Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment of
capital construction from the central government in 2012. The project has passed the acceptance check in current
period, this appropriation should be amortized within the surplus service life of current assets.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for
automobile: the Company received appropriated for the project in 2013 with 8.05 million Yuan in line with
documents of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong
Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao [2014] No.58, Xi Ke Ji [2014] No. 246 and Xi
Cai Gong Mao [2014] No.162. Received RMB 3 million in 2014 and RMB 0.45 million in 2015; and belongs to
government grant with assets concerned, and shall be amortized according to the depreciation process.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader has
applied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi
Science and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. This
declaration has been approved by Wuxi Huishan Science and Technology Bureau and Wuxi Science and
Technology Bureau in 2012, and the company has received appropriation of 2.4 million Yuan in 2012, and
received appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related to
assets and will be amortized according to the depreciation process.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and
Xi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated for
industry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation received
by the Company, and will be amortized according to the depreciation of new-built assets, amount of
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
11,813,783.39 Yuan amortize in the year.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and
Xi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in
2016.
(11) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the
document Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuan
for the guiding capital of technical reform (1st batch) from Wuxi for year of 2016, which included in the
government subsidy with assets-concerned, and will amortized according to the depreciation process after
acceptance
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document
YCZ Fa[2016] NO.623 and “Strong Industrial Base Project Contract for year of 2016”, subsidiary Weifu Tianli
received a specific subsidy of 16.97 million Yuan, the fund supporting strong industrial base project
(made-in-China 2025) of central industrial transformation and upgrading 2016 from Ministry of Industry and
Information Technology; and belongs to government grant with assets concerned, and shall be amortized
according to the depreciation process.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent
Manufacturing Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 Yuan
was granted by relevant government authority in Huishan district to our subsidiary Weifu Leader in 2017, totally
0.88 million Yuan appropriate funds received in the year, to be utilized for transformation and upgrade of Weifu
Leader’s intelligent manufacturing facilities. This subsidy belongs to government grant related to assets which
shall be amortized based on the depreciation progress of the assets.
35. Share capital
In RMB
Changeduringtheperiod(+,-)
Opening balance New shares Shares transferred from Closing balance
Bonus share Other Subtotal
issued capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
36. Capital reserve
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance
Capital premium (Share
3,372,647,413.97 3,372,647,413.97
capital premium)
Other Capital reserves 45,193,988.92 1,824,597.47 43,369,391.45
Total 3,417,841,402.89 1,824,597.47 3,416,016,805.42
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
37. Other consolidated income
In RMB
Current period
Less: written in
other
comprehensive Closing
Account before Belong to
Item Opening balance income in
Less : income tax Belong to parent minority balance
income tax in the previous period
expense company after taxshareholder
and carried
period s after tax
forward to gains
and losses in
current period
II. Other
comprehensive
income items which
87,169,455.01 -59,786,808.00 8,804,463.00 -10,288,690.65 -58,302,580.35 28,866,874.66
will be reclassified
subsequently to
profit or loss
Gains or losses
arising from
changes in fair value 87,169,455.01 -59,786,808.00 8,804,463.00 -10,288,690.65 -58,302,580.35 28,866,874.66
of available-for-sale
financial assets
Total other
87,169,455.01 -59,786,808.00 8,804,463.00 -10,288,690.65 -58,302,580.35 28,866,874.66
consolidated income
38. Reasonable reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Safety production costs 2,606.93 10,050,468.85 8,933,473.96 1,119,601.82
Total 2,606.93 10,050,468.85 8,933,473.96 1,119,601.82
Other explanation, including changes and reasons for changes:
According to the “management method of extraction and use the safety production costs for enterprise” Cai Qi
[2012] No.16 jointly issued by Ministry of Finance and Administration of Production Safety Supervision, the
provision is based on the actual operation revenue of last period, extract on average month-by-month basis
through excess regressive method
Among the above safety production costs, including the safety production costs accrual by the Company in line
with regulations and the parts enjoy by shareholders of the Company in safety production costs accrual by
subsidiary in line with regulations.
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
39. Surplus reserves
In RMB
Item Opening balance Increase during the period Decrease during this period Closing balance
Statutory surplus
510,100,496.00 510,100,496.00
reserves
Total 510,100,496.00 510,100,496.00
Other explanation, including changes and reasons for changes:
Withdrawal of the statutory surplus reserves: Pursuit to the Company Law and Article of Association, the
Company extracted statutory surplus reserve on 10 percent of the net profit. No more amounts shall be withdrawal
if the accumulated statutory surplus reserve takes over 50 percent of the registered capital.
40. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last period before adjustment 9,811,609,138.92 7,845,639,990.88
Retained profits at the beginning of the period after adjustment 9,811,609,138.92 7,845,639,990.88
Add: The net profits belong to owners of patent company of this period 1,545,242,704.92 2,571,339,490.04
Common dividend payable 1,210,740,700.00 605,370,342.00
Retained profit at period-end 10,146,111,143.84 9,811,609,138.92
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
41. Operating income and cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main operating 4,725,759,054.05 3,682,028,566.53 4,480,811,897.39 3,526,184,596.99
Other operating 235,042,836.94 207,561,723.16 247,313,701.63 210,106,341.87
Total 4,960,801,890.99 3,889,590,289.69 4,728,125,599.02 3,736,290,938.86
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
42. Business tax and surcharges
In RMB
Item Current period Last period
City maintenance and construction tax 15,131,214.76 15,554,573.84
Educational surtax 10,807,786.47 11,107,313.56
Property tax 7,130,285.13 6,488,252.36
Land use tax 3,243,530.28 3,131,115.90
Vehicle use tax 24,297.00 18,915.00
Stamp duty 1,578,877.86 1,556,803.30
Other taxes 84,360.90 5,308.52
Total 38,000,352.40 37,862,282.48
43. Sales expenses
In RMB
Item Current period Last period
Salary and fringe benefit 23,852,704.11 16,800,347.95
Consumption of office materials and business travel charge 5,767,944.92 5,184,310.23
Transportation charge 19,146,343.03 17,050,992.80
Warehouse charge 3,241,966.63 1,546,815.48
Three-guarantee fee 40,015,843.08 20,963,280.32
Business entertainment fee 8,251,206.32 6,230,440.89
Other 6,071,551.76 3,783,074.99
Total 106,347,559.85 71,559,262.66
44. Administration expenses
In RMB
Item Current period Last period
Salary and fringe benefit 94,992,042.41 116,204,076.96
Depreciation charger and long-term assets amortization 24,091,878.82 23,516,873.88
Consumption of office materials and business travel charge 7,840,515.40 10,088,373.09
Incentive fund 64,279,800.00 41,805,000.00
Other 222,779,142.15 207,954,410.80
Total 413,983,378.78 399,568,734.73
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
45. Financial expenses
In RMB
Item Current period Last period
Interest expenses 9,075,955.05 4,482,686.51
Note discount interest expenses 409,282.24 402,851.58
Saving interest income -11,684,097.62 -9,918,625.28
Gains/losses from exchange -491,644.75 6,084,256.36
Handling charges 913,596.71 636,882.15
Total -1,776,908.37 1,688,051.32
Other explanation:
The interest expenses for year of 2017 including the 1,135,848.00 Yuan received of regards for the provincial
engineering center
46. Asset impairment loss
In RMB
Item Current period Last period
I. Bad debt loss 2,192,563.70 1,918,243.57
II. Inventory falling price loss -2,202,651.08 -13,214,717.13
Total -10,087.38 -11,296,473.56
47. Investment income
In RMB
Item Current period Last period
Income of long-term equity investment calculated based on equity 968,640,145.91 833,565,520.64
Investment income from holding financial assets available for sales 3,220,575.00 235,500.00
Investment income obtained from disposal of financial assets available for sales 17,370,816.75 24,625,516.88
Entrust financial income 159,801,630.73 97,021,850.83
Gains/losses of subsidiary liquidation -10,472.99
Total 1,149,033,168.39 955,437,915.36
48. Income from assets disposal
In RMB
Sources Current period Last period
Income from disposal of non-current assets 1,820,229.59 235,193.85
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Losses from disposal of non-current assets -232,044.23 -360,974.45
Total 1,588,185.36 -125,780.60
49. Other income
In RMB
Source of other income Current period Last period
Government subsidy related with daily operation activities 14,032,459.71 15,608,007.28
Total 14,032,459.71 15,608,007.28
50. Non-operating income
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Government subsidy 3,667,570.46 1,498,749.45 3,667,570.46
Other 213,558.41 1,285,830.03 213,558.41
Total 3,881,128.87 2,784,579.48 3,881,128.87
Government subsidy reckoned into current gains/losses:
In RMB
Whether the
Caus
Gran impact of Whether
e of Natu Assets
ting subsidies on special Current
Item distri re Last period related/Incom
subj the current subsidie period
butio type e related
ect profit and s
n
loss
Income
Steady post subsidy in Wuxi No No 967,170.46 1,402,281.45
related
Social insurance fund for recruiting college
Income
graduates by small & medium enterprise in No No 27,468.00
related
Ningbo City
Income
Patent funding No No 621,500.00
related
Fund of manufacturing of intelligent
Income
transformation for common rail pump in No No 1,340,000.00
related
Huishan District
Grants of high-tech enterprise recognized
Income
award from Management Committee of No No 500,000.00
related
Jiangbei District
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Income
Discount on imported equipment No No 103,000.00
related
Employment subsidy from Employment
Income
management service of Jiangbei District, No No 86,520.00
related
Ningbo City
Special fund for 333 high-end talents Income
No No 30,000.00
training project related
Income
Other No No 19,380.00 69,000.00
related
Total -- -- -- -- -- 3,667,570.46 1,498,749.45 --
51. Non-operating expenditure
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Total non-current assets disposal losses 167,094.34 1,175,039.72 167,094.34
Including: fixed assets disposal losses 167,094.34 1,175,039.72 167,094.34
Donations 13,500.00
Local fund 2,015,771.73 1,957,389.72
Other 145,006.31 618,295.22 145,006.31
Total 2,327,872.38 3,764,224.66 312,100.65
52. Income tax expense
(1) Statement of income tax expense
In RMB
Item Current period Last period
Payable tax in current period 102,952,291.92 84,212,598.76
Adjusted the previous income tax -603,416.68 -644,798.91
Increase/decrease of deferred income tax assets 633,939.20 10,513,650.01
Increase/decrease of deferred income tax liability -55,516.48 -55,516.50
Total 102,927,297.96 94,025,933.36
(2) Adjustment on accounting profit and income tax expenses
In RMB
96
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Item Current period
Total profit 1,680,874,375.97
Income tax measured by statutory/applicable tax rate 252,131,156.40
Impact by different tax rate applied by subsidies 3,581,538.92
Adjusted the previous income tax -603,416.68
Impact by non-taxable revenue -145,876,642.65
Impact by the deductible losses of the un-recognized previous deferred income tax -4,510,779.88
The deductible temporary differences or deductible losses of the un-recognized
492,355.10
deferred income tax assets in the Period
Other -2,286,913.25
Income tax expense 102,927,297.96
53. Other comprehensive income
See Note VII. 35 “Other comprehensive income”
54. Items of ash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current period Last period
Income from bank deposit interest 12,485,826.79 10,505,698.00
Government subsidy 8,212,570.46 8,156,049.45
Other 181,546.85 1,051,339.77
Total 20,879,944.10 19,713,087.22
(2) Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Expenses of sales cash paid 46,539,395.20 45,844,220.52
Expenses of management cash paid 100,789,163.46 104,847,303.37
Other 6,641,913.18 3,396,065.05
Total 153,970,471.84 154,087,588.94
(3) Cash received from other investment activities
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(4) Cash paid related with investment activities
In RMB
Item Current period Last period
Borrowing of Baodun (Tianjin) Electrical
10,000,000.00
Co., Ltd. are paid
Total 10,000,000.00
(5) Other cash received in relation to financing activities
In RMB
Item Current period Last period
Weifu Leader received the borrowings
5,470,000.00
from Wuxi Industrial Group
Total 5,470,000.00
(6) Cash paid related with financing activities
In RMB
Item Current period Last period
Liquidation charges 1,049,711.28
National debt paid transfer to loans 339,091.00
Total 339,091.00 1,049,711.28
55. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 1,577,947,078.01 1,368,367,366.03
Add: Assets impairment provision -10,087.38 -11,296,473.56
Depreciation of fixed assets, consumption of oil assets and depreciation of
142,796,801.99 134,523,929.25
productive biology assets
Amortization of intangible assets 8,927,389.15 9,475,063.57
Amortization of long-term deferred expenses 1,093,846.42 1,281,403.15
Loss from disposal of fixed assets, intangible assets and other long-term -1,588,185.36 1,300,820.32
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
assets(gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 167,094.34
Financial expenses (gain is listed with “-”) 8,265,783.22 5,167,986.51
Investment loss (gain is listed with “-”) -1,149,683,398.46 -953,391,921.75
Decrease of deferred income tax asset( (increase is listed with “-”) 633,939.20 10,513,650.01
Increase of deferred income tax liability (decrease is listed with “-”) -55,516.48 -55,516.50
Decrease of inventory (increase is listed with “-”) 241,085,663.64 228,492,024.91
Decrease of operating receivable accounts (increase is listed with “-”) -606,831,311.20 -684,474,762.93
Increase of operating payable accounts (decrease is listed with “-”) 154,832,323.82 255,605,734.75
Other 1,342,269.57 -13,108,062.24
Net cash flow arising from operating activities 378,923,690.48 352,401,241.52
2. Material investment and financing not involved in cash flow -- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 2,842,510,815.26 1,595,210,818.24
Less: Balance of cash equivalent at period-begin 2,948,439,354.22 3,795,223,678.11
Net increasing of cash and cash equivalents -105,928,538.96 -2,200,012,859.87
(2) Net cash payment for the acquisition of a subsidiary of the current period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
In RMB
Item Closing balance Opening balance
Ⅰ. Cash 2,842,510,815.26 2,948,439,354.22
Including: stock cash 594,764.72 736,773.22
Bank deposit available for payment at any time 2,841,916,050.54 2,947,702,581.00
Ⅲ. Balance of cash and cash equivalent at period-end 2,842,510,815.26 2,948,439,354.22
56. Notes for the statement of owners equity changes
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
57. Assets with ownership or use right restricted
In RMB
Item Book value at Restriction reason
period-end
Monetary fund 99,317,091.42 Cash deposit for bank acceptance
Notes receivable 389,454,825.85 Notes pledge for bank acceptance
Monetary fund 881,868.57 Court freeze
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of
Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as “Shenzhen
Intermediate People's Court”), the property with the value of 217 million Yuan under the
Financial assets
166,608,867.78 name of the Company and other seven respondents and the third party Shenzhen Hejun
availablefor sale
Chuangye Holdings Co., Ltd. was frozen. As of the end of the reporting period, 4.71 million
shares of Miracle Logistics and 11,739,102 shares of SDEC held by the Company were
frozen.
Total 656,262,653.62 --
58. Item of foreign currency
(1) Item of foreign currency
In RMB
Item Closing balance of foreign currency Rate of conversion Ending RMB balance converted
Monetary fund
Including: USD 15,019,676.83 6.6166 99,379,193.71
EUR 1,959,035.57 7.6515 14,989,560.66
HKD 9,178,111.52 0.8431 7,738,065.82
JPY 9,248,508.00 0.059914 554,115.12
Accounts receivable
Including: USD 4,805,349.78 6.6166 31,795,077.36
EUR 968,745.75 7.6515 7,412,358.10
JPY 11,348,905.00 0.059914 679,958.29
Accounts payable
Including: USD 673,126.61 6.6166 4,453,809.52
EUR 1,597,806.15 7.6515 12,225,613.75
CHF 20,630.15 6.6350 136,881.05
JPY 94,543,893.00 0.059914 5,664,502.81
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
Nil
2. Enterprise merger under the same control
Nil
3. Reverse purchase
Nil
4. The disposal of subsidiaries
Whether there is a subsidiary disposal on one time, which is loss control of rights
□Yes √No
Whether there is a subsidiary disposal by steps through multiple trading and loss control of rights in the period
□Yes √No
5. Other reasons for consolidation range changed
Explain the reasons on consolidate scope changes (i.e. subsidiary newly established, subsidiary liquidation etc.) and relevant
information:
In the Year, the wholly-owned subsidiary – Nanchang Weifu Leader Auto Parts Co., Ltd. was establised by
investment from Weifu Leader, the industrial and commerce record was conpleted on 8 March 2018, and there
was no business exercise in the reporting period actually
6. Other
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Registere Share-holding ratio
Subsidiary Business nature Acquired way
place d place Directly Indirectly
Spare parts of Enterprise merger under
Weifu Jinning Nanjing Nanjing 80.00%
internal-combustion engine the same control
Automobile exhaust purifier, Enterprise merger under
Weifu Leader Wuxi Wuxi 94.81%
muffler the same control
Spare parts of
Weifu Mashan Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
Weifu Chang’an Wuxi Wuxi 100.00% Investment
internal-combustion engine
Weifu
Enterprise merger under
International Wuxi Wuxi Trading 100.00%
the same control
Trade
Spare parts of Enterprise merger not
Weifu ITM Wuxi Wuxi 100.00%
internal-combustion engine under the same control
Spare parts of
Weifu Schmidt Wuxi Wuxi 66.00% Investment
internal-combustion engine
Spare parts of Enterprise merger not
Weifu Tianli Ningbo Ningbo 54.23%
internal-combustion engine under the same control
Spare parts of Enterprise merger not
Weifu Autocam Wuxi Wuxi 51.00%
internal-combustion engine under the same control
Weifu Automobile exhaust purifier,
Wuhan Wuhan 60.00% Investment
Leader(Wuhan) muffler
Weifu Leader Chongqin Automobile exhaust purifier,
Chongqing 100.00% Investment
(Chongqing) g muffler
Weifu Leader Automobile exhaust purifier,
Nanchang Nanchang 100.00% Investment
(Nanchang) muffler
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis of the invested unit control by the Company though holds half or below voting rights; and the invested unit without controls by
the Company but with over half voting rights hold: Nil
Major structured entity included in consolidate statement: Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Basis of termination of agent or consigner: Nil
Other note:
In accordance with the resolution of Office Meeting 2017 No.(002), the 6.29% shares of Weifu Tianli held by
Ningbo Shenhua Energy-Saving and Enviornmental Protection Tech. Co., Ltd. are acquired in the Year, after
acquisition, shares of Weifu Tianli held by the Company increased to 54.23%, and file in industry and commerce
bureau on 8 May 2018.
(2) Important non-wholly-owned subsidiary
In RMB
Share-holding ratio of Gains/losses attributable Dividend announced to distribute Ending equity
Subsidiary
minority to minority in the Period for minority in the Period of minority
Weifu Jinning 20.00% 14,039,076.96 15,604,600.00 166,673,874.88
Weifu Schmidt 34.00% 103,977.38 9,699,940.40
Weifu Leader 5.19% 3,712,573.37 85,078,510.19
Weifu Tianli 45.77% 3,707,146.34 100,120,917.35
Weifu Autocam 49.00% 11,141,599.05 158,494,159.40
Total 32,704,373.09 15,604,600.00 520,067,402.22
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Closing balance
Subsidiary Non-current Non-current
Current assets Total assets Current liability Total liability
assets liability
Weifu Jinning 844,802,667.29 331,265,814.56 1,176,068,481.85 285,415,594.32 55,389,251.34 340,804,845.66
Weifu Schmidt 92,971,564.08 38,943,805.27 131,915,369.35 102,971,926.15 102,971,926.15
Weifu Leader 2,491,180,678.70 1,045,889,830.01 3,537,070,508.71 1,881,471,789.42 24,300,604.32 1,905,772,393.74
Weifu Tianli 329,410,523.92 223,968,657.04 553,379,180.96 283,848,085.10 61,052,803.89 344,900,888.99
Weifu Autocam 292,491,401.69 280,137,032.48 572,628,434.17 251,950,534.98 251,950,534.98
Total 4,050,856,835.68 1,920,205,139.36 5,971,061,975.04 2,805,657,929.97 140,742,659.55 2,946,400,589.52
Opening balance
Subsidiary Non-current Non-current
Current assets Total assets Current liability Total liability
assets liability
Weifu Jinning 804,641,137.00 337,158,270.17 1,141,799,407.17 245,091,101.59 54,199,342.64 299,290,444.23
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Weifu Schmidt 88,975,034.68 33,405,432.30 122,380,466.98 93,741,159.45 93,741,159.45
Weifu Leader 2,392,378,693.81 978,224,529.85 3,370,603,223.66 1,793,072,212.90 23,503,280.34 1,816,575,493.24
Weifu Tianli 290,628,819.00 243,156,899.42 533,785,718.42 259,270,617.16 63,076,581.29 322,347,198.45
Weifu Autocam 250,884,987.49 216,134,430.81 467,019,418.30 169,012,066.26 169,012,066.26
Total 3,827,508,671.98 1,808,079,562.55 5,635,588,234.53 2,550,187,157.36 150,779,204.27 2,700,966,361.63
In RMB
Current period
Subsidiary
Operation Income Net profit Total comprehensive income Cash flow from operation activity
Weifu Jinning 345,257,893.56 70,230,711.18 70,230,711.18 34,921,442.31
Weifu Schmidt 90,961,973.06 304,135.67 304,135.67 11,277,941.76
Weifu Leader 1,589,176,188.66 76,364,083.43 76,364,083.43 -19,011,866.15
Weifu Tianli 196,673,863.48 8,293,196.15 8,293,196.15 -9,491,657.17
Weifu Autocam 234,675,435.40 22,670,547.15 22,670,547.15 3,466,284.14
Total 2,456,745,354.16 177,862,673.58 177,862,673.58 21,162,144.89
Last period
Subsidiary
Operation Income Net profit Total comprehensive income Cash flow from operation activity
Weifu Jinning 320,793,577.32 75,554,314.01 75,554,314.01 51,524,867.08
Weifu Schmidt 63,231,942.41 -523,081.90 -523,081.90 -3,177,601.27
Weifu Leader 1,397,383,244.81 87,593,822.47 87,593,822.47 83,180,660.24
Weifu Tianli 160,306,384.47 804,668.07 804,668.07 7,731,426.95
Weifu Autocam 258,060,091.53 46,391,372.85 46,391,372.85 18,287,063.55
Total 2,199,775,240.54 209,600,886.31 209,600,886.31 158,446,533.01
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding ratio Accounting
treatment on
Main
Registered investment for
Name operation Business nature Indirectl
place Directly joint venture and
place y
cooperative
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst Co.,
Wuxi Wuxi Catalyst 49.00% Equity method
Ltd.
II. Cooperative enterprise
Internal
Bosch Automobile Diesel System Co., combustion
Wuxi Wuxi 32.50% 1.50% Equity method
Ltd. engine and
attachment
Internal
combustion
Zhonglian Automobile Electronic Co., Ltd Shanghai Shanghai 20.00% Equity method
engine and
attachment
Internal
Weifu Precision Machinery combustion
Wuxi Wuxi 20.00% Equity method
Manufacturing Co., Ltd. engine and
attachment
Holding shares ratio different from the voting right ratio: Nil
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold: Nil
(2) Main financial information of the important joint venture
In RMB
Closing balance /Current period Opening balance /Last period
Weifu Environment Weifu Environment
Current assets 3,284,020,160.10 3,011,258,785.42
Including: cash and cash equivalents 278,457,844.16 120,584,888.35
Non -current assets 290,878,020.94 284,089,421.89
Total assets 3,574,898,181.04 3,295,348,207.31
Current liabilities 2,400,664,228.68 2,211,790,474.13
Non –current liabilities 19,672,000.00 16,450,000.00
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Total liabilities 2,420,336,228.68 2,228,240,474.13
Shareholders’ equity attributable to parent company 1,154,561,952.36 1,067,107,733.18
Share of net assets calculated by shareholding ratio 565,735,356.67 522,882,789.26
Book value of equity investment in joint ventures 565,735,356.67 522,882,789.26
Operation income 1,864,398,010.43 1,571,581,523.69
Financial expense 47,189,696.29 30,728,151.56
Income tax expense 3,251,620.98 17,908,910.36
Net profit 92,057,072.82 90,618,512.17
Total comprehensive income 92,057,072.82 90,618,512.17
(3) Main financial information of the important cooperative enterprise
In RMB
Closing balance /Current period Opening balance /Last period
Bosch Diesel Zhonglian Weifu Precision Bosch Diesel Zhonglian Weifu Precision
System Automobile Machinery System Automobile Machinery
Current assets 9,675,155,533.63 1,346,012,502.62 269,283,814.39 8,194,014,833.80 688,116,022.56 238,511,756.68
Non -current
2,449,077,752.32 4,519,310,194.86 127,131,232.18 2,696,164,046.92 4,668,848,226.74 123,616,959.50
assets
Total assets 12,124,233,285.95 5,865,322,697.48 396,415,046.57 10,890,178,880.72 5,356,964,249.30 362,128,716.18
Current liabilities 4,894,935,119.46 1,212,230,464.04 112,123,028.11 3,949,654,684.13 566,609,302.26 112,597,321.52
Non –current
2,186,640.00 2,210,310.00
liabilities
Total liabilities 4,894,935,119.46 1,214,417,104.04 112,123,028.11 3,949,654,684.13 568,819,612.26 112,597,321.52
Attributable to
parent company
7,229,298,166.49 4,650,905,593.44 284,292,018.46 6,940,524,196.59 4,788,144,637.04 249,531,394.66
shareholders’
equity
Share of net
assets calculated
2,457,961,376.61 930,181,118.68 56,858,403.69 2,359,778,226.84 957,628,927.40 49,906,278.93
by shareholding
ratio
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized
profit of internal -18,110,561.77 -36,495.80 -18,770,053.91 -28,335.94
trading
--Other -0.28 -529,034.03 -0.28 -529,034.03
Book value of
2,707,639,575.91 931,588,384.64 56,292,873.86 2,608,796,934.00 959,036,193.36 49,348,908.96
equity investment
106
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
in joint ventures
Operation income 8,713,485,959.51 12,091,114.45 190,093,280.56 7,780,712,323.52 8,953,773.36 120,872,329.06
Net profit 2,076,330,091.90 1,059,760,956.40 34,760,623.80 1,750,186,156.84 980,886,111.95 17,474,566.01
Total
comprehensive 2,076,330,091.90 1,059,760,956.40 34,760,623.80 1,750,186,156.84 980,886,111.95 17,474,566.01
income
Dividends
received from
303,884,540.74 318,528,894.62
joint venture in
the year
(4) Financial summary for non-important Joint venture and affiliate enterprise
Nil
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates
Nil
(6) Excess loss occurred in joint venture or affiliates
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
6. Other
Nil
107
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
X. Risk related with financial instrument
Main financial instrument of the Company including equity investment, loans, account receivable, account
payable etc., more details of the financial instrument can be found in relevant items of Note VII. Risks concerned
with the above mentioned financial instrument, and the risk management policy takes for lower the risks are as
follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower the
adverse impact on performance of the Company to minimum standards, and maximized the benefit for
shareholders and other investors. Base on the risk management targets, the basic tactics of the risk management is
to recognized and analyzed the vary risks that the Company counted, established an appropriate risk exposure
baseline and caring risk management, supervise the vary risks timely and reliably in order to control the risk in a
limited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainly
including credit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the risk
management target and policy-making, and takes ultimate responsibility for the target of risk management and
policy. Risk management department and financial control department manager and monitor those risk exposure
to ensuring the risks are control in a limited range.
1. Credit Risk
Credit risk refers to the one party fails to perform the obligation of the financial instruments, form the other party
company mainly face credit risk for financial loss caused by the customer credit risks. In order to prevent the risks,
the Company formulated an evaluation system for the new client’s credit and system to analyze the book credit for
regular customer. The evaluation system for the new client’s credit aims at the new clients, the Company will
conduct an background investigation based on the established process, with purpose of determine whether offer
credit limit to the client and the amount of the credit and credit terms or not. Whereby, the Company setting a
credit limits and credit period for every new client, and such limit is the maximum amount without additional
approval. The system to analyze the book credit for regular customer refers to after purchase order received by
regular customer, the Company will examine the order amount and outstanding balance, if the total over the credit
limit, on the premise of additional approval, sales on account shall be realized, or prepayments for relevant
amount shall be required.
Furthermore, as for the sales on account occurred, the Company will guarantee the total credit risks in a
controlling range by analyzed and review the monthly report of the risk attention for account receivables.
The maximum credit risk exposure of the Company is the book amount of such financial assets, till end of 30 June
2018; lists of the maximum credit risk exposure of the Company are as:
Item Amount of merge Amount of parent company
Accounts receivable 2,374,955,337.33 1,003,118,142.78
Other receivables 17,839,885.07 178,153,549.80
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
fluctuations in the market price changes and produce, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.
IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, in
line with the anticipative change orientation, choose floating rate or fixed rate, that is the rate in future period will
goes up prospectively, than choose fixed rate; if the rate in future period will decline prospectively, than choose
the floating rate. In order to minor the bad impact from difference between the expectation and real condition,
loans for liquid funds of the Company are choose the short-term period, and agreed the terms of prepayment in
particular.
(2) Foreign exchange (FX) risk
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly
related with the USD, EUR, SF, JPY and GBP, except for the USD, EUR, SF and JPY carried out for the
equipment purchasing of parent company and Autocam, material purchasing from business section of Weifu
Diesel System, technical service and trademark usage costs from business section of Weifu Diesel System and the
import and export of Weifu International Trade, other main business of the Company are pricing and settle with
RMB (Yuan). In consequence of the foreign financial assets and liabilities takes minor ratio in total assets, the
Company has small FX risk of the financial instrument, considered by management of the Company.
End as 30 June 2018, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
the Company are carried with RMB
1. Foreign currency assets of the Company till end of 30 June 2018:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets
currency balance converted
Monetary fund
Including: USD 15,019,676.83 6.6166 99,379,193.71 0.45%
EUR 1,959,035.57 7.6515 14,989,560.66 0.07%
JPY 9,248,508.00 0.059914 554,115.12
HKD 9,178,111.52 0.8431 7,738,065.82 0.04%
Accounts receivable
Including: USD 4,805,349.78 6.6166 31,795,077.36 0.15%
EUR 968,745.75 7.6515 7,412,358.10 0.03%
JPY 11,348,905.00 0.059914 679,958.29
Total ratio in assets 0.74%
2. Foreign currency liabilities of the Company till end of 30 June 2018:
Ending foreign Ending RMB balance
Item Convert rate Ratio in liabilities
currency balance converted
Accounts payable
Including: USD 673,126.61 6.6166 4,453,809.52 0.07%
EUR 1,597,806.15 7.6515 12,225,613.75 0.20%
109
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
CHF 20,630.15 6.6350 136,881.05
JPY 94,543,893.00 0.059914 5,664,502.81 0.09%
Total ratio in 0.36%
liabilities
(3) Other pricing risk
Classification of the Company held is the equity investments in financial assets available for sale, and such
investment can be measured by fair value on balance sheet date, thus, the Company owns a risk of stock market
changes.
Furthermore, on the premise of deliberated and approved in 5th meeting of 8th session of the Board, the Company
exercise entrust financing with the self-owned idle capital; therefore, the Company has the risks of collecting no
principal due to entrust financial products default. Aims at such risk, the Company formulated a “Management
Mechanism of Capital Financing”, and well-defined the authority approval, investment decision-making,
calculation management and risk controls for the entrust financing in order to guarantee a security funds and
prevent investment risk efficiently. In order to lower the adverse impact from unpredictable factors, the Company
choose short-term and medium period for investment and investment product’s term is up to 3 years in principle;
in variety of investment, the Company did not invested for the stocks, derivative products, security investment
fund and the entrust financial products aims at security investment as well as other investment with securities
concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the
enterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has rich
capital to pay the due debts, therefore, a financial control department is established for collectively controlling
such risks. On the one hand, the financial control department monitoring the cash balance, the marketable
securities which can be converted into cash at any time and the rolling forecast on cash flow in future 12 months,
ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the other
hand, building a favorable relationship with the banks, rationally design the line of credit, credit products and
credit terms, guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing
requirements.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(2) Equity instrument investment 178,332,264.00 178,332,264.00
Total assets sustaining measured by fair value 178,332,264.00 178,332,264.00
II. Non-persistent measure -- -- -- --
110
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Wuxi Industry Operation of
Wuxi 3,720,671,000 Yuan 20.22% 20.22%
Group state-owned assets
Explanation on parent company of the enterprise
Wuxi Industry Development Group Co., Ltd was solely state-owned enterprise funded and established by Wuxi Municipal People’s
Government which mainly took responsibility of authorizing the state-owned assets operation within a certain areas, investment
management of significant project, investment and development of manufacturing and services and venture capital in high-tech
achievement
Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.
2. Subsidiary of the Enterprise
Found more in Note IX. 1.” Equity in subsidiary”
3. Cooperative enterprise and joint venture
Found more in Note IX.3. “Equity in joint venture and cooperative enterprise”
Other cooperative enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: Nil
4. Other related party
Other related party Relationship with the Enterprise
ROBERT BOSCH GMBH The second largest shareholder of the Company
Key executive Director, supervisor and senior executive of the Company
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Approved transaction Whether more than
Related party Content Current period Last period
limit the transaction limit
Weifu Precision
Goods and labor 22,934,380.54 50,000,000.00 No 20,428,172.03
Machinery
111
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Bosch Diesel
Goods and labor 29,375,329.74 70,000,000.00 No 101,905,922.60
System
Weifu Environment Goods 946,283,103.47 1,925,000,000.00 No 683,351,475.87
ROBERT BOSCH
Goods 62,350,113.72 143,000,000.00 No 77,035,723.88
GMBH
Goods sold/labor service providing
In RMB
Related party Content Current period Last period
Weifu Precision Machinery Goods and labor 2,772,785.47 1,816,410.96
Bosch Diesel System Goods and labor 1,600,013,496.75 1,684,350,434.59
Weifu Environment Goods and labor 28,741,766.37 37,016,920.13
ROBERT BOSCH GMBH Goods and labor 319,461,744.57 1,583,518.80
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB
Lessee Assets type Lease income in recognized in the Period Lease income in recognized last the Period
Weifu Environment Workshop 1,254,028.50 1,194,313.00
As a tenant: Nil
Explanation on related lease
Weifu Leader entered into the house leasing contract with Weifu Environment, as for the plant locates at No.9
Linjiang Road, Wuxi new district, owed by Weifu Leader, rent-out to Weifu Environment, agreements are made
as: Rental from 1 January 2017 to 31 December 2017 was 2,388,626.00 Yuan
(4) Related guarantee
Nil
(5) Related party’s borrowed funds
Nil
(6) Related party’s assets transfer and debt reorganization
Nil
112
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(7) Remuneration of key manager
In RMB
Item Current period Last period
Remuneration of key manager 2,400,000.00 2,310,000.00
(8) Other related transactions
Item Related party Current period Last period
Fixed assets purchased Bosch Diesel System 42,735.04
Technology royalties paid etc. ROBERT BOSCH 2,805,114.55 2,468,484.66
GMBH
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Closing balance Opening balance
Item Related party
Book balance Bad debt reserves Book balance Bad debt reserves
Account receivable Weifu Precision Machinery 34,405.50 425,363.64
Account receivable Bosch Diesel System 611,995,184.24 615,770,490.57 72,188.07
Account receivable ROBERT BOSCH GMBH 96,482,607.56
Account receivable Weifu Environment 6,050,093.98 710,200.00
Other non-current
Bosch Diesel System 877,500.00
assets
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Account payables Weifu Precision Machinery 13,680,801.84 9,737,530.74
Account payables Weifu Environment 723,117,682.74 379,374,827.01
Account payables Bosch Diesel System 14,183,956.17 44,262,749.15
Account payables ROBERT BOSCH GMBH 1,987,967.11 38,202,192.76
Account received in advance ROBERT BOSCH GMBH 579,650.36
Account received in advance Weifu Environment 5,850,143.44 6,514,951.87
Other accounts payable Industry Group 5,470,000.00
113
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Guarantees to subsidiary
Guarantee Whether
Guarantee amount (in Terminated guarantee
Guarantee provided Debit bank Starting from
received 10 thousand dated implemented
Yuan) or not
Jiangbei branch of
Weifu High-Technology Group
Weifu Tianli Bank of China in 5,000.00 2016-11-15 2021-11-10 N
Co., Ltd.
Ningbo
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
114
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
2. Profit distribution
In RMB
Profit or dividend plans to distributed 1,210,740,700.00
Profit or dividend declare to distributed which have been approved 1,210,740,700.00
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
4. Pension plan
The “Enterprise Annuity Plan under the name of WFHT” has deliberated and approved by 8th meeting of 7th
session of the Board: in order to mobilize the initiative and creativity of the employees, established a talent
long-term incentive mechanism, enhance the cohesive force and competitiveness in enterprise, the Company
carried out the above mentioned annuity plan since the date of reply of plans reporting received from labor
security administration department. Annuity plans are: the annuity fund are paid by the enterprise and employees
together; the amount paid by enterprise shall not over the 1/12 of the total salary of last years, amount paid by
individual and enterprise shall not over the 1/6 of the total salary of last year, in accordance with the State’s
annuity policy, the Company will adjusted the economic benefits in due time, in principle of responding to the
economic strength of the enterprise, the amount paid by the enterprise at current period control in the 8.33 percent
of the total salary of last year, specific paying ratio later shall be adjust correspondingly in line with the operation
condition of the Company.
In December 2012, the Company received the “Reply on annuity plans reporting under the name of WFHT” from
labor security administration department, later, the Company entered into the “Entrusted Management Contract of
the Annuity Plan of WFHT” with PICC.
115
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
5. Discontinued operations
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have been
satisfied at the same time:
①the component is able to generate revenues and expenses in routine activities;
②management of the Company is able to assess the operation results regularly, and determine resources
allocation and performance evaluation for the component;
③being analyzed, financial status, operation results and cash flow of the components are able to required by the
Company
The Company mainly engaged in the manufacture of fuel system of internal combustion engine products, auto
parts, muffler and purifier etc., based on the product segment, the Company determine three reporting segment as
auto fuel injection system, air intake system and car after-treatment system. Accounting policy for the three
reporting segments are shares the same policy state in Note III
Segment assets exclude financial assets through profit or loss at fair value, derivative instruments, dividends
receivables, interest receivables, financial management products due within one year, financial assets available for
sale, long term equity investment and other undistributed assets, since these assets are not related to products
operation.
(2) Financial information for reportable segment
In RMB
Add:
investment/incom
e measured by
equity, income of
financial products
or possession and
Product segment of
Product segment of Product segment of disposal income,
automotive
Item automotive fuel automotive air the retained assets Offset of segment Total
post-processing
injection system intake system or gains/losses as
system
the financial
assets available
for sale or
possession and
disposal income
116
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Operating
3,102,531,936.37 1,702,505,894.52 276,835,296.54 121,071,236.44 4,960,801,890.99
revenue
Operating
2,267,395,464.33 1,540,041,366.60 203,224,695.20 121,071,236.44 3,889,590,289.69
cost
Total profit 470,140,658.42 40,905,079.54 20,795,469.62 1,149,033,168.39 1,680,874,375.97
Net profit 401,324,005.53 34,550,600.44 19,615,170.77 1,122,457,301.27 1,577,947,078.01
Total assets 9,112,788,174.84 2,954,472,168.12 797,969,043.92 9,278,108,867.85 222,549,411.87 21,920,788,842.86
Total
4,095,612,976.11 1,913,172,789.96 480,969,210.37 5,094,154.34 205,293,181.88 6,289,555,948.90
liabilities
(3) If there are no segment in the Company, or the total assets and liabilities of the segment are un-able to
disclosed, explain the reasons
Not applicable
(4) Other notes
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
Closing balance Opening balance
Book balance Bad debt reserves Book balance Bad debt reserves
Types Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Receivables with bad
1,049,4
debt provision 1,006,26 3,150,97 1,003,118 2,477,035 1,047,012,8
100.00% 0.31% 89,925. 100.00% 0.24%
accrual by credit 9,116.34 3.56 ,142.78 .41 89.92
33
portfolio
Total 1,006,26 100.00% 3,150,97 0.31% 1,003,118 1,049,4 100.00% 2,477,035 0.24% 1,047,012,8
117
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
9,116.34 3.56 ,142.78 89,925. .41 89.92
33
Account receivable with single significant amount and withdrawal bad debt provision separately at period end :
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserves Accrual ratio
Subitem of within one year
Within 6 months 787,013,605.57
6 months to one year 10,781,166.25 1,078,116.64 10.00%
Subtotal within one year 797,794,771.82 1,078,116.64
1-2 years 943,376.16 188,701.22 20.00%
2-3 years 1,091,364.56 436,545.82 40.00%
Over 3 years 1,447,609.88 1,447,609.88 100.00%
Total 801,277,122.42 3,150,973.56 0.39%
Explanations on combination determine:
Except for the receivables with impairment reserves accrual singly; base on the actual loss ratio of the receivables
of previous years, with same or similar credit portfolio, and combining actual condition accrual bad debt reserves
to determined the accrual ratio for bad debt reserves
In combination, withdrawal bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal bad debt provision based on other methods for account receivable:
Combination of related party
Related party Amount Proportion of the bad debt
provision withdrawal (%)
Weifu Leader 37,319,951.85 --
Weifu ITM 56,016,233.09 --
Weifu Autocam 8,405,583.57 --
Weifu International Trade 98,113,836.09 --
Weifu Tianli 1,441,969.98 --
Weifu Schmidt 3,694,419.34 --
Total 204,991,993.92 --
118
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 678,845.55 Yuan; collected or reversed 0.00 Yuan.
Including major amount collected or reversed in the period: Nil
(3) Receivables actually written-off during the reporting period
In RMB
Item Written-off amount
Other small companies 4,907.40
Important receivables written-off: nil
Explanation: the account was not occurred from related transaction
(4) Top 5 receivables at ending balance by arrears party
Total receivables collected by arrears party for the Period amounting to 852,601,230.38 Yuan, takes 84.73 percent
in closing balance of the account receivables; 118,908.79 Yuan are accrual correspondingly for bad debt reserves.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other accounts receivable
(1) Classification
In RMB
Closing balance Opening balance
Book balance Bad debt reserves Book balance Bad debt reserves
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other receivable with
single significant
178,164, 10,457.0 178,153,5 50,395, 220,680.1 50,174,653.
amount and 100.00% 0.01% 100.00% 0.44%
006.82 2 49.80 333.34 8 16
withdrawal bad debt
provision separately
178,164, 10,457.0 178,153,5 50,395, 220,680.1 50,174,653.
Total 100.00% 0.01% 100.00% 0.44%
006.82 2 49.80 333.34 8 16
119
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other receivable Bad debt reserves Accrual ratio
Subitem of within one year
Within 6 months 12,270,196.99
6 months to one year 104,570.21 10,457.02 10.00%
1-2 years 12,374,767.20 10,457.02
Total 12,374,767.20 10,457.02 0.08%
Explanations on combination determine:
Except for the other receivables with impairment reserves accrual singly; base on the actual loss ratio of the
receivables of previous years, with same or similar credit portfolio, and combining actual condition accrual bad
debt reserves to determined the accrual ratio for bad debt reserves
In combination, withdrawal bad debt provision based on balance proportion for other account receivable
□ Applicable √ Not applicable
In combination, withdrawal bad debt provision based on other methods for other account receivable
√Applicable□ Not applicable
Combination of related party
Proportion of the bad debt
Related party Amount
provision withdrawal
Weifu Chang’an 20,000,000.00
Weifu Mashan 21,789,239.62
Weifu Leader 100,000,000.00
Weifu Schmidt 24,000,000.00
Total 165,789,239.62
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 8,405.53 Yuan; collected or reversed 218,628.69 Yuan.
Including major amount collected or reversed in the period: nil
(3) Other receivables actually written-off during the reporting period: Nil
(4) Other receivables by nature
In RMB
120
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Nature Ending book balance Opening book balance
Staff loans and petty cash 2,193,166.13 1,438,626.00
Balance of related party within the scope of the merger 165,789,239.62 47,000,000.00
Current money with the enterprises 10,174,401.07 1,949,507.34
Other 7,200.00 7,200.00
Total 178,164,006.82 50,395,333.34
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending balance of
Company Nature Ending balance Book age balance of other
bad bet provision
receivables
Current money with
Weifu Leader 100,000,000.00 Within one year 56.13%
the subsidiary
Current money with
Weifu Schmidt 24,000,000.00 Within one year 13.47%
the subsidiary
Current money with
Weifu Mashan 21,789,239.62 Within one year 12.23%
the subsidiary
Current money with
Weifu Chang’an 20,000,000.00 Within one year 11.23%
the subsidiary
Baodun (Tianjin) Current money with
10,000,000.00 Within one year 5.61%
Electrical Co., Ltd. the enterprises
Total -- 175,789,239.62 -- 98.67%
(6) Account receivable with government grand involved
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liabilities resulted by other account receivable transfer and continues involvement
Nil
3. Long-term equity investment
In RMB
121
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Closing balance Opening balance
Item
Book balance Impairment Book value Book balance Impairment Book value
Investment for
1,466,611,689.17 1,466,611,689.17 1,451,041,689.17 1,451,041,689.17
subsidiary
Investment for
associates and joint 3,585,913,387.21 3,585,913,387.21 3,511,481,000.32 3,511,481,000.32
venture
Total 5,052,525,076.38 5,052,525,076.38 4,962,522,689.49 4,962,522,689.49
(1) Investment for subsidiary
In RMB
Ending balance of
Impairment
The invested entity Opening balance Increased Decreased Ending balance impairment
accrual
provision
Weifu Jinning 178,639,593.52 178,639,593.52
Weifu Leader 460,113,855.00 460,113,855.00
Weifu Mashan 168,693,380.51 168,693,380.51
Weifu Chang’an 220,902,037.30 220,902,037.30
Weifu
32,849,254.85 32,849,254.85
International Trade
Weifu ITM 167,000,000.00 167,000,000.00
Weifu Schmidt 50,160,000.00 50,160,000.00
Weifu Tianli 90,229,100.00 15,570,000.00 105,799,100.00
Weifu Autocam 82,454,467.99 82,454,467.99
Total 1,451,041,689.17 15,570,000.00 1,466,611,689.17
(2) Investment for associates and joint venture
In RMB
+,-
Investme Ending
Other Cash
nt balance
Additiona comprehe dividend
Opening gains/loss Other Ending of
Company l Capital nsive or profit Impairme
balance es equity Other balance impairme
investmen reduction income announce nt accrual
recognize change nt
t adjustmen d to
d under provision
t issued
equity
I. Joint venture
122
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
II. Associated enterprise
Bosch
2,503,154 675,879,1 580,955,7 2,598,078
Diesel
,814.59 64.22 39.65 ,239.16
System
Zhonglian
Automobi
959,036,1 211,952,1 239,400,0 931,588,3
le
93.36 91.28 00.00 84.64
Electronic
Co., Ltd
Weifu
Precision 49,289,99 6,956,771 56,246,76
Machiner 2.37 .04 3.41
y
3,511,481 894,788,1 820,355,7 3,585,913
Subtotal
,000.32 26.54 39.65 ,387.21
3,511,481 894,788,1 820,355,7 3,585,913
Total
,000.32 26.54 39.65 ,387.21
(3) Other explanation
In accordance with the resolution of Office Meeting 2017 No.(002), the 6.29% shares of Weifu Tianli held by
Ningbo Shenhua Energy-Saving and Enviornmental Protection Tech. Co., Ltd. are acquired in the Year, after
acquisition, shares of Weifu Tianli held by the Company increased to 54.23%, and file in industry and commerce
bureau on 8 May 2018.
4. Operating income and cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 2,136,258,034.82 1,533,313,082.59 1,473,896,379.07 1,129,630,086.97
Other business 178,884,620.31 165,203,440.31 152,584,036.64 138,992,574.61
Total 2,315,142,655.13 1,698,516,522.90 1,626,480,415.71 1,268,622,661.58
5. Investment gains
In RMB
Item Current period Last period
Income of long-term equity investment calculated based on cost 62,418,400.00 949,835,680.00
Income of long-term equity investment calculated based on equity 894,788,126.54 767,309,765.64
123
无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
Investment income from period of holding
3,220,575.00 235,500.00
the financial assets available for sale
Investment income obtained from disposal of financial assets available
17,370,816.75 24,625,516.88
for sale
Entrust financial income 159,552,310.73 97,021,850.83
Gains/losses of equity liquidation -8,261,290.60
Total 1,137,350,229.02 1,830,767,022.75
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset 1,421,091.02
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant to 17,700,030.17
enterprise’s business)
Profit and loss of assets delegation on others’ investment or management 159,801,630.73
Held transaction financial asset, gains/losses of changes of fair values from transaction
financial liabilities, and investment gains from disposal of transaction financial asset,
17,370,816.75
transaction financial liabilities and financial asset available for sales, exclude the effective
hedging business relevant with normal operations of the Company
Switch-back of impairment of account receivable that practice impairment test independent 512,580.00
Other non-operating income and expenditure except for the aforementioned items 73,701.23
Less: Impact on income tax 29,876,415.88
Impact on minority shareholders’ equity 626,230.67
Total 166,377,203.35 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2018 年半年度财务报告
2. REO and earnings per share
Earnings per share
Weighted average
Profits during report period Diluted EPS
ROE Basic EPS (RMB/Share)
(RMB/Share)
Net profits belong to common stock stockholders of the
9.92% 1.53 1.53
Company
Net profits belong to common stock stockholders of the
8.85% 1.37 1.37
Company after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute
Not applicable
4. Other
Nil
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