Stock Code: 000581, 200581 Public Notice No: 2019-008
Short Form of the Stock: Weifu High- Tech, Su Weifu-B
Weifu High-Technology Group Co., Ltd.
Summary of Annual Report 2018
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition
and future development plan of the Company; investors should found in the full-text of annual report that
published on media appointed by CSRC.
Statement: no directors, supervisors or senior management declare the authenticity, accuracy and integrity of the
report cannot be guaranteed or there is objection.
Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Zhang Xiaogeng Director Travel for business Hua Wanrong
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the
Board in the reporting period
√Applicable □Not applicable
Whether has capitalizing of common reserves carried out
□Yes √ No
The profit distribution plan that deliberated and approved by the Board is: based on total stock issued
1,008,950,570 shares, distributed 12.00 Yuan (tax included) bonus in cash for every 10-share hold by all
shareholders, 0 shares bonus issued (tax included) and no capitalizing of common reserves carried out.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Company profile
1. Company Profile
Short form of the stock Weifu High- Tech, Su Weifu-B Stock code 000581, 200581
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Zhou Weixing Yan Guohong
Office add. No.5, Huashan Road, New District, Wuxi City No.5, Huashan Road, New District, Wuxi City
Fax. 0510-80505199 0510-80505199
Tel. 0510-80505999 0510-80505999
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
2. Main business or product introduction in the reporting period
(i) Main business of the Company
1. The Company belongs to auto parts industry, and its main business products include diesel fuel injection system
products, exhaust after-treatment system products and air management system products.
2. Main uses of the Company's products
(1) The diesel fuel injection system products are widely used in different power diesel engines supporting all types
of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only makes
products matching with the main engines used at home but also exports some products to the Americas, Southeast
Asia, and the Middle East. The products meet the needs of national emission standards.
(2) The auto exhaust after-treatment system products: mainly support the major manufacturers of automobile,
motorcycle and general machinery at home which meet the national emission standards.
(3) The intake system products (supercharger): matches with most of the domestic small-bore diesel engine plants
and some six-cylinder diesel engine manufacturers, and meet the needs of the light and heavy commercial
vehicles and some passenger cars, and meets the national emission standards.
3. Business model of the Company
The Company follows the operating philosophy of making competitive products, creating famous brands, striving
for first choices, and creating value for the users, implements the business model that parent company unifies the
management and subsidiaries decentralize the production. Namely, the group company is responsible for making
strategic development planning and operation targets, and making the unified management, instruction and
assessment for the finance, significant personnel management, core raw materials, quality control, and technology
of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which
makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the Company’s main business and business model have no significant changes.
(ii) Development stage and periodic characteristics of the industry the Company involves and the Company's
In the past 40 years of reform and opening up, China’s economy has shifted from a high-speed growth stage to a
high-quality development stage. Although the market may continue to show unexpected changes in the future, we
believe that the fundamentals of China’s healthy and stable economic development will not change, and the
Chinese economy is fully capable of maintaining a reasonable growth range. At the same time, the Chinese
automobile market has entered a period of steady growth since 2010, in order to solve the increasingly severe
traffic jams, environmental pollution, energy conservation and consumption reduction, the automobile industry
has accelerated the technology upgrades, and the automobile new energy applications are rapidly advancing,
nowadays the artificial intelligence, internet of things and other technologies develop rapidly and accelerate the
penetration into various fields, it has reached a consensus on the development of intelligent networked
automobiles which promotes the development environment of intelligent networked automobiles to become
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
increasingly perfect.
After 60 years of hard work, the company has become a backbone enterprise of core parts of domestic auto
(power engineering), 80% products of the existing Automobile components core business are matched with the
electronic control systems and electronically controlled. The company will actively respond to the national new
energy and intelligent network strategy, take the Automobile components industry chain as the core and other
related fields as supplements, lay out new energy auto drive technology, and promote the hydrogen fuel cell
technology and intelligent network technology research and development capacity building. Market objectives:
consolidate the existing business market position and take a position in the new business potential market.
Technical objectives: strengthen the technical strength of the pillar business, lay out the new business frontier
technology, and actively expand new areas based on the existing business. Strive to achieve the goal of becoming
a leader in the auto core parts enterprises.
3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
In RMB
Changes over last
2018 2017 2016
year
Operating income 8,721,674,671.18 9,017,280,159.80 -3.28% 6,422,700,399.27
Net profit attributable to shareholders of
2,396,077,415.21 2,571,339,490.04 -6.82% 1,672,224,317.05
the listed company
Net profit attributable to shareholders of
the listed company after deducting 2,014,800,714.20 2,322,218,596.99 -13.24% 1,435,963,836.76
non-recurring gains and losses
Net cash flow arising from operating
874,381,526.63 957,697,901.07 -8.70% 527,344,364.04
activities
Basic earnings per share (RMB/Share) 2.37 2.55 -7.06% 1.66
Diluted earnings per share (RMB/Share) 2.37 2.55 -7.06% 1.66
Weighted average ROE 15.48% 18.52% -3.04% 13.53%
Changes over end
End of 2018 End of 2017 End of 2016
of last year
Total assets 20,892,041,460.30 20,231,006,224.36 3.27% 17,263,771,897.78
Net assets attributable to shareholder of
15,913,828,778.82 14,835,673,669.75 7.27% 12,927,344,292.47
listed company
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
(2) Quarterly main financial index
In RMB
1st Q 2nd Q 3rd Q 4th Q
Operating income 2,391,982,640.39 2,568,819,250.60 1,898,914,219.62 1,861,958,560.57
Net profit attributable to shareholders of
784,228,178.43 761,014,526.49 510,387,493.91 340,447,216.38
the listed company
Net profit attributable to shareholders of
the listed company after deducting 691,078,505.55 687,786,996.02 452,953,425.86 182,981,786.77
non-recurring gains and losses
Net cash flow arising from operating
86,416,705.11 292,506,985.37 127,146,119.98 368,311,716.17
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered and
top ten shareholders
In Share
Total common Total common stock Total preference Total preference
stock shareholders at end of shareholders with shareholders with voting
shareholders in 60,946 last month before 54,791 voting rights 0 rights recovered at end 0
reporting annual report recovered at end of of last month before
period-end disclosed reporting period annual report disclosed
Top ten shareholders
Number of shares
Proportion Amount of
Nature of Amount of pledged/frozen
Name of Shareholders of shares restricted
shareholder shares held State of
held shares held Amount
share
Wuxi Industry Development Group Co., State-owned
20.22% 204,059,398
Ltd corporate
ROBERT BOSCH GMBH Foreign corporate 14.16% 142,841,400
Hong Kong Securities Clearing
Foreign corporate 4.01% 40,482,044
Company
Bank of Communication – HSBC Jixin
Double Core Strategy Mixed Securities Other 2.64% 26,612,573
Investment Fund
BBH BOS S/A FIDELITY FD - CHINA
Foreign corporate 1.78% 18,002,797
FOCUS FD
Central Huijin Assets Management Co., State-owned
1.27% 12,811,200
Ltd. corporate
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
Zhonghai Trust Co., Ltd. - Jinhai No.9
Securities Investment Collective Fund Other 0.79% 7,931,752
Trust
Agricultural Bank of China - CS 500
Other 0.62% 6,211,068
ETF
FIDELITY INVMT TRT FIDELITY
Foreign corporate 0.57% 5,791,618
INTL SMALL CAP FUND
Basic pension fund-- 1207 portfolio Other 0.50% 5,028,007
Among the top ten shareholders, there has no associated relationship
between Wuxi Industry Development Croup Co., Ltd. and other
Explanation on associated relationship among the aforesaid shareholders, the first largest shareholder of the Company; and they do
shareholders not belong to the person acting in concert regulated by the
Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Explanation on shareholders involving margin business (if
Not applicable
applicable)
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
State-owned Assets Supervision & Administration
Commission of Wuxi Municipality of Jiangsu Province
100%
Wuxi Industry Development Croup Co., Ltd.
20.22%
Weifu High-Technology Group Co., Ltd.
5. Corporate bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
No
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
III. Discussion and analysis by the Management Team
1. Introduction of operation in the reporting period
(i) General introduction
In 2018, the macroeconomic growth rate declined. China’s automobile production and sales growth rate was lower
than that estimated at the beginning of the year, the total quantity showed the first negative growth in 28 years.
According to the data released by the China Association of Automobile Manufacturers, the annual production and
sales volume of automobiles were 27.809 million and 28.081 million, respectively declined by 4.2% and 2.8% on a
year-on-year basis, and the annual production and sales volume of passenger vehicles were respectively 23.529
million and 23.71 million, respectively declined by 5.2% and 4.1% over the same period of the previous year, while
the annual production and sales volume of commercial vehicles were respectively 4.28 million and 4.371 million,
respectively increased by 1.7% and 5.1% over the same period of the previous year, and the growth rate declined.
Facing the complicated market environment, the company worked hard to overcome difficulties and maintain the
overall stability of comprehensive economic operation. During the reporting period, the company achieved
operating income of 8.722 billion yuan, a decline of 3.28% on a year-on-year basis, realized total profit of 2.602
billion yuan, a decline of 8.06% on a year-on-year basis; total assets were 20.892 billion yuan, an increase of
3.27% on a year-on-year basis; the owner’s equity attributable to the parent company was 15.914 billion yuan, an
increase of 7.27% on a year-on-year basis.
(ii) Main work carried out
1. Actively responded to the severe market challenges and fully guaranteed the stability of main business
Under the influence of the decline in automobile market and engine market, the company responded positively,
focused on the core market, continuously improved the manufacturing system, strengthened the process control
capability, improved the delivery capability of leading products, improved the physical quality of key products,
and ensured the total amount of main business products. The market share of fuel injection system related
products and supercharger products remained relatively stable and had a certain growth throughout the year, the
production and sales volume of multiple-piston pumps for fuel injection systems still exceeded 2 million units,
and the sales of supercharger products increased by 10% on a year-on-year basis. Due to market fluctuations, the
market share of post-processing system business has slightly declined.
2. Took advantage of information technology means to gradually establish an operation management system to
further enhance the company’s operating efficiency
The company continuously promoted the optimization and upgrading of management, actively sorted out the
management duties, standardized and optimized the existing system processes, planned and designed the
company’s financial reform and transformation, built the company’s financial sharing center, established the
company’s procurement and sharing platform project, further improved the human resource management system,
strengthened the security construction of the Group’s information system, thus the comprehensive management
capability of the enterprise has been further improved.
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
3. Started the future layout, established the “double-engine-driven” strategic model of “new business becomes a
long-term new engine, and traditional businesses guarantee the enterprise forward again”, and took the auto parts
industry chain as the core and other related fields as supplements to further improve the R&D system, promote the
research and development of platform products, quickly deploy the forward-looking projects, and actively
promote the investment cooperation of new business.
2. Whether the main business had major change in the reporting period
□Yes √No
3. The industries, products, or regions accounting for over 10% of the company’s operating income or
operating profit
√Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Name Operating revenue Operating cost of operating of operating cost of gross profit
ratio
revenue y-o-y y-o-y ratio y-o-y
Auto fuel injection
5,027,966,298.51 1,469,230,901.34 29.22% -10.02% -13.82% -1.29%
system
Intake system 440,331,903.61 123,637,620.24 28.08% 15.69% 29.98% 3.09%
Exhaust
2,794,656,676.75 335,946,193.86 12.02% 8.87% 6.73% -0.24%
after-treatment system
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
7 Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the
financial report of last year
√ Applicable □Not applicable
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
(1) Change of major accounting policy
On June 15, 2018, the Ministry of Finance issued the Notice on Amending the Format of Financial Statements of
General Enterprises in 2018 (CK No. [2018] 15), revised the financial statements format of general enterprises.
According to the requirement, relevant content of the accounting policy needs to be adjusted, and the financial
statement should be prepared in line with the format of financial statement for general enterprise(applicable to
enterprise that have not yet implemented new financial and revenue standards).
The impacts on the items and amounts related to consolidated financial statements and the parent company’s
financial statements during the comparable period are as:
Impact on the amount in relevant financial statement of 2017/on 31 December 2017
Changes of Amount affected (+,-)
accounting policy Item
Consolidate financial statement Financial statement of parent company
The Company
Note receivable -1,464,256,934.83 -449,209,323.02
prepared the
financial statement
of 2018 in line with Account receivable -1,995,577,830.90 -1,047,012,889.92
the format regulated Note receivable and account
in CK No. [2018] 15, receivable 3,459,834,765.73 1,496,222,212.94
and changed the
presentation of Interest receivable -2,281,979.17 -97,627.77
relevant financial
statements by Other account receivable 2,281,979.17 97,627.77
retrospective method
Note payable -947,976,759.10 -459,762,950.78
Account payable -2,570,956,205.83 -1,082,206,882.07
Note payable and account
3,518,932,964.93 1,541,969,832.85
payable
Interest payable -401,928.43 -93,777.78
Other account payable 401,928.43 93,777.78
Long-term account payable 18,265,082.11 --
Special account payable -18,265,082.11 --
Administrative expenses -391,315,234.75 -119,083,205.53
R&D expenses 391,315,234.75 119,083,205.53
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
√Applicable □Not applicable
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无锡威孚高科技集团股份有限公司 2018 年年度报告摘要
Way of obtained Time when equity Ratio of fund
Content changed Company
the equity obtained contribution
Consolidate scope Nanchang Weifu Leader Auto Parts Newly
2018-3-8 100.00%
increased & Components Co., Ltd. established
Board of Directors of
Weifu High-Technology Group Co., Ltd.
23 April 2019
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