无锡威孚高科技集团股份有限公司
Weifu High-Technology Group Co., Ltd.
ANNUAL REPORT 2018
April 2019
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) hereby
confirm that there are no any fictitious statements, misleading statements, or important
omissions carried in this report, and shall take all responsibilities, individual and/or joint, for
the reality, accuracy and completion of the whole contents.
Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of accounting works
and Ou Jianbin, person in charge of accounting organ (accounting principal) hereby confirm
that the Financial Report of 2018 Annual Report is authentic, accurate and complete.
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
Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a substantial commitment for investors. Investors should be cautious with
investment risks. The Company described the risks that might occurred in the operation in
the report “IX- The Company’s future development prospects” of “Section IV- Discussion and
Analysis of the Operation” and “X. Risks with financial instrument concerned” in Section XI.
Financial Report, as well as the risk management policy the Company will take in order to
reduce those risks. Investors should pay attention to relevant content.
The China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao
Website are the information disclosure media appointed by the Company, all information
should be prevail on the above mentioned media, investors are advice to pay attention on
investment risks.
The profit distribution plan that deliberated and approved by the Board is: based on total
stock issue of 1,008,950,570, 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.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Contents
Section I Important Notice, Contents and Paraphrase ................................................................ 2
Section II Company Profile and Main Finnaical Indexes ............................................................ 5
Section III Summary of Business .................................................................................................... 9
Section IV Discussion and Analysis of Operation ....................................................................... 12
Section V Important Events .......................................................................................................... 26
Section VI Changes in shares and particular about shareholders ............................................... 40
Section VII Preferred Stock ………………………………………………………………………25
Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 46
Section IX Corporate Governance ................................................................................................. 56
Section X Corporate Bond .............................................................................................................. 62
Section XI Financial Report ............................................................................................................ 63
Section XII Documents Available for Reference ......................................................................... 194
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Paraphrase
Items Refers to Contents
Company, The Company, Weifu High-technology Refers to Weifu High-Technology Group Co., Ltd.
Weifu Group Refers to Wuxi Weifu Group Co., Ltd.
Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Robert Bosch, Robert Bosch Company Refers to Robert Bosch Co., Ltd., ROBERT BOSCH GMBH
Bosch Automobile Diesel, Bosch Diesel System Refers to Bosch Automobile Diesel System Co., Ltd.
Weifu Leader Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
Weifu Jinning Refers to Nanjing Weifu Jinning Co., Ltd.
Weifu Chang’an Refers to Wuxi Weifu Chang’an Co., Ltd.
Weifu Mashan Refers to Weifu Mashan Pump Glib Co., Ltd.
Weifu ITM Refers to Wuxi Weifu ITM Supercharging Technique Co., Ltd.
Weifu Tianli Refers to Ningbo Weifu Tianli Supercharging Technique Co., Ltd.
Weifu Schmidt Refers to Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.
Weifu International Trade Refers to Wuxi Weifu International Trade Co. Ltd.
Weifu Autocam Refers to Wuxi Weifu-Autocam Fine Machinery Co. Ltd.
Weifu Environment Refers to Wuxi Weifu Environment Catalyst Co., Ltd.
Weifu Precision Machinery Refers to Weifu Precision Machinery Manufacturing Co., Ltd.
Zhonglian Electronic Refers to Zhonglian Automobile Electronic Co., Ltd.
Taiji Industry Refers to Wuxi Taiji Industry Corporation Limited
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
Jiangsu Gongzheng Tianye Certified Public Accountants
Jiangsu Gongzheng Refers to
(Special General Partnership)
The reporting period Refers to From 1 Jan. 2018 to 31 Dec. 2018
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Weifu High- Tech, Su Weifu-B Stock code 000581, 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in Chinese) 威孚高科
Foreign name of the Company (if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
Short form of foreign name of the Company (if
WFHT
applicable)
Legal representative Chen Xuejun
Registrations add. No.5 Huashan Rd. New District, Wuxi City
Code for registrations add 214028
Offices add. No.5 Huashan Rd. New District, Wuxi City
Codes for office add. 214028
Company’s Internet Web Site http://www.weifu.com.cn
E-mail Web @ weifu.com.cn
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Weixing Yan Guohong
Contact add. No.5, Huashan Road, New District, Wuxi City No.5, Huashan Road, New District, Wuxi City
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
III. Information disclosure and preparation place
Newspaper appointed for information disclosure China Securities Journal; Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by CSRC http://www.cninfo.com.cn
Preparation place for annual report Office of the Board of Directors
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
IV. Registration changes of the Company
Organization code 91320200250456967N
Changes of main business since
No change
listing (if applicable)
Controlling shareholder of the Company was Weifu Group before 2009. and in 2019,
controlling shareholder changed to Industry Group since 31 May 2009 due to the merged of
Previous changes for controlling Industry Group and Weifu Group. Weifu Group and Industry Group were wholly state-owned
shareholders (if applicable) companies of Wuxi State-owned Assets Supervision & Administration Commission of State
Council, therefore, actual controller of the Company turns to Wuxi State-owned Assets
Supervision & Administration Commission of State Council.
V. Other relevant information
CPA engaged by the Company
Name of CPA Jiangsu Gongzheng Tianye Certified Public Accountants (Special General Partnership)
10/F, No.5 Building, Jiakaicheng Fortune Center, Jingrong 3 rd Street, Taihu Xincheng, Binghu District,
Offices add. for CPA
Wuxi, Jiangsu Province
Signing Accountants Bo Lingjing, Meng Yin
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Changes over
2018 2017 2016
last year
Operating income (RMB) 8,721,674,671.18 9,017,280,159.80 -3.28% 6,422,700,399.27
Net profit attributable to shareholders of the listed
2,396,077,415.21 2,571,339,490.04 -6.82% 1,672,224,317.05
company(RMB)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and 2,014,800,714.20 2,322,218,596.99 -13.24% 1,435,963,836.76
losses(RMB)
Net cash flows arising from operating activities
874,381,526.63 957,697,901.07 -8.70% 527,344,364.04
(RMB)
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
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Weighted average ROE 15.48% 18.52% -3.04% 13.53%
Changes over
End of 2018 End of 2017 end of last End of 2016
year
Total assets (RMB) 20,892,041,460.30 20,231,006,224.36 3.27% 17,263,771,897.78
Net assets attributable to shareholder of listed
15,913,828,778.82 14,835,673,669.75 7.27% 12,927,344,292.47
company (RMB)
VII. 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
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. 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 the
784,228,178.43 761,014,526.49 510,387,493.91 340,447,216.38
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 flows 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
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2018 2017 2016 Note
Including gains from
Gains/losses from the disposal of non-current asset the compensation
(including the write-off that accrued for impairment 96,162,222.57 -3,233,320.26 -6,229,604.16 of expropriation of
of assets) housing and land
of Weifu Jinning
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in
48,811,314.99 48,162,140.65 43,963,942.28
quota or ration according to national standards,
which are closely relevant to enterprise’s business)
Profit and loss of assets delegation on others’
311,261,918.65 221,705,034.02 205,047,032.68
investment or management
Held transaction financial asset, gains/losses of
changes of fair values from transaction financial Including the
liabilities, and investment gains from disposal of gain/loss of fair value
transaction financial asset, transaction financial 16,880,487.62 24,625,516.88 31,650,057.18 changes from
liabilities and financial asset available for sales, derivative financial
exclude the effective hedging business relevant with liability
normal operations of the Company
Switch back of provision for depreciation of
account receivable which was singly taken 466,200.00 1,756,052.60 2,338,453.69
depreciation test
Other non-operating income and expenditure except
-597,126.12 4,479,807.85 4,481,317.09
for the aforementioned items
The amount collected
Other gain/loss qualify the definition of in the period while
353,111.39
non-recurring gains/losses has been charged-off
previous
Relocation expenses -57,116.41
Less: Impact on income tax 70,234,077.14 43,481,221.93 42,191,376.78
Impact on minority shareholders’ equity
21,827,350.95 4,893,116.76 2,742,225.28
(post-tax)
Total 381,276,701.01 249,120,893.05 236,260,480.29 --
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
In reporting period, the Company has no particular about 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
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section III Summary of Business
I. Main businesses of the company 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 Air management 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,
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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
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.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major change
Fixed assets No major change
Intangible assets No major change
Construction in progress at period-end has major growth over that of year-begin, mainly
Construction in progress
because the equipment for technical innovation and expansion increased
2. Main overseas assets
√Applicable □Not applicable
Foreign
Control Whether
assets
measure to exist
Content of Operation Income accounted
Reason for the formation Asset size Location ensure the significant
assets mode (RMB) for net
security of impairment
assets of the
assets risk (Y/N)
Company
The Company For the overall The Company The Company
paid arrangement of the invested US$24 will pay full
investment of company’s future million and attention to
24 million US development, the 15th obtained the Equity changes in the
the
dollars on May meeting of the eighth stock right of of industry and the
United No 0.04% Yes
21, 2018 to board of directors of the subscribing preferred market, give
States
become a company reviewed and 10,212,765 stock play to its own
shareholder of approved the Proposal on shares of advantages, and
Protean Foreign Investment. The E-round actively prevent
E-round company will invest 30 preferred stock and resolve
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
preferred stock. million US dollars in the issued by various risks.
E-round preferred stock Protean.
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.
III. Core Competitiveness Analysis
The Company is a high technology enterprise with a number of patented technologies. For years, based on the
scientific research as National Enterprise Technical Center, Post-doctor Scientific Research Station, Jiangsu
Provincial Engineering and Technology Research Center and Industrialization Base of National Hi-Tech Research
and Development Achievement, we have became the backbone enterprise of the core parts of domestic
automobile (power engineering) after 60 years of cultivation. 80% of the current core business of auto parts are
matching with electronic control system and with electronic control realized, which owes a leading position in
self-owned brand.
The company lays emphasis on the manufacturing quality management, relies on WPS (Weifu production system)
and manufacturing information platform with Weifu characteristics to continuously improve the production
system structure, personnel organization, operation mode and market supply and demand relationship, and
continues to carry out the process quality indicator quantitative management and process management, and
improve production efficiency, product quality and product delivery capabilities, and the company’s
manufacturing quality control capabilities are further improved.
The company pays attention to the business operation quality of and lays emphasis on the resource integration. At
present, the company has established a high-speed, stable and reliable network environment and an efficient data
center, successfully built the ERP platform, opened up the value chain, and realized the integration of financial
services, which made the information resources fully shared, and the company’s comprehensive operational
management level has been further improved.
The company pays attention to the construction of core talent system. At present, it has built a relatively complete
human resource management platform to strive to build a high-quality core talent team, which provides a strong
human resource guarantee for the long-term development of the company.
During the reporting period, the company’s core competitiveness (in terms of product manufacturing, quality
improvement, personnel quality improvement, resource utilization, etc.) has been improved.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section IV Discussion and Analysis of the Operation
1. Introduction
(i) Overall situation
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
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
capability of the enterprise has been further improved.
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.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Operation”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2018 2017
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total operation
8,721,674,671.18 100% 9,017,280,159.80 100% -3.28%
revenue
According to industries
Automobile
8,262,954,878.87 94.74% 8,535,599,504.73 94.66% -3.19%
components
Other business 458,719,792.31 5.26% 481,680,655.07 5.34% -4.77%
According to products
Automobile fuel
5,027,966,298.51 57.65% 5,588,110,745.38 61.97% -10.02%
injection system
Air management
440,331,903.61 5.05% 380,600,452.78 4.22% 15.69%
system
Automotive post
2,794,656,676.75 32.04% 2,566,888,306.57 28.47% 8.87%
processing system
Other business 458,719,792.31 5.26% 481,680,655.07 5.34% -4.77%
According to region
Domestic sales 8,337,832,868.65 95.60% 8,698,826,555.01 96.47% -4.15%
Foreign sales 383,841,802.53 4.40% 318,453,604.79 3.53% 20.53%
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
(2) 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
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
According to industries
Automobile
8,262,954,878.87 6,334,140,163.43 23.34% -3.19% -1.35% -1.43%
components
According to products
Automobile fuel
5,027,966,298.51 3,558,735,397.17 29.22% -10.02% -8.36% -1.29%
injection system
Air management
440,331,903.61 316,694,283.37 28.08% 15.69% 10.93% 3.09%
system
Automotive post
processing 2,794,656,676.75 2,458,710,482.89 12.02% 8.87% 9.17% -0.24%
system
According to region
Domestic sales 8,337,832,868.65 5,968,730,399.02 28.41% -4.15% -2.40% -1.28%
Foreign sales 383,841,802.53 365,409,764.41 4.80% 20.53% 19.71% 0.66%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2018 2017
y-o-y
Fuel injection Sales volume In 10 thousand units 244 266 -8.27%
system—multiple-piston Output In 10 thousand units 245 262 -6.49%
pump
Storage In 10 thousand units 17 16 6.25%
Sales volume In 10 thousand sets 227 227
Fuel injection
Output In 10 thousand sets 223 209 6.70%
system—injector
Storage In 10 thousand sets 12 16 -25.00%
Sales volume In 10 thousand pieces 270 293 -7.85%
After-treatment
Output In 10 thousand pieces 220 286 -23.08%
system—purifier
Storage In 10 thousand pieces 28 78 -64.10%
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Sales volume In 10 thousand units 72 65 10.77%
Air management
Output In 10 thousand units 73 68 7.35%
system—turbocharger
Storage In 10 thousand units 14 13 7.69%
Reasons for y-o-y relevant data with over 30% changes
□Applicable √Not applicable
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries and products
In RMB
2018 2017
Increase/decrease
Industries Item Ratio in operation Ratio in operation
Amount Amount y-o-y
cost cost
Automobile
Direct material 4,879,991,330.39 77.04% 5,014,924,816.81 78.10% -2.69%
components
Automobile
Labor cost 601,322,359.87 9.49% 548,188,077.87 8.54% 9.69%
components
Automobile
Depreciation 171,085,221.37 2.70% 165,645,016.82 2.58% 3.28%
components
Automobile Varieties of
681,741,251.80 10.76% 692,224,373.76 10.78% -1.51%
components consumption
In RMB
2018 2017
Increase/decrease
Products Item Ratio in Ratio in
Amount Amount y-o-y
operation cost operation cost
Direct
Fuel injection system 2,306,305,694.10 64.81% 2,661,656,663.54 68.54% -13.35%
material
Fuel injection system Labor cost 483,559,687.15 13.59% 459,976,070.97 11.84% 5.13%
Fuel injection system Depreciation 136,068,633.86 3.82% 134,028,364.58 3.45% 1.52%
Varieties of
Fuel injection system 632,801,382.06 17.78% 627,703,331.82 16.16% 0.81%
consumption
Direct
Air management system 270,908,557.76 85.54% 235,640,433.48 82.54% 14.97%
material
Air management system Labor cost 20,768,561.86 6.56% 23,813,534.44 8.34% -12.79%
15
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Air management system Depreciation 14,081,316.71 4.45% 13,761,987.24 4.82% 2.32%
Varieties of
Air management system 10,935,847.04 3.45% 12,265,632.65 4.30% -10.84%
consumption
Exhaust after-treatment Direct
2,302,777,078.53 93.66% 2,094,875,783.60 93.02% 9.92%
system material
Exhaust after-treatment
Labor cost 96,994,110.86 3.94% 88,220,371.79 3.92% 9.95%
system
Exhaust after-treatment
Depreciation 20,935,270.80 0.85% 17,854,665.00 0.79% 17.25%
system
Exhaust after-treatment Varieties of
38,004,022.70 1.55% 51,185,446.15 2.27% -25.75%
system consumption
(6) Whether the changes in the scope of consolidation in Reporting Period
√Yes □No
Changes of consolidate Enterprise Equity obtained Time when equity Contribution ratio
scope method obtained
Consolidate scope Nanchang Weifu Leader Auto Parts &
Newly established 2018-3-8 100.00%
increased Components Co., Ltd.
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 4,671,119,701.53
Proportion in total annual sales volume for top five clients 53.56%
Ratio of the related sales in total annual sales from top five clients 39.48%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Bosch Diesel System 2,722,919,316.33 31.22%
2 Robert Bosch 720,709,408.92 8.26%
3 Client III 692,335,425.30 7.94%
4 Client IV 306,289,484.81 3.51%
5 Client V 228,866,066.17 2.62%
Total -- 4,671,119,701.53 53.56%
Other situation of main clients
√Applicable □Not applicable
16
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
The Company has association with Bosch Diesel System, and directors, supervisors, senior executives, core
technicians and actual controller of the Company have no equity in main suppliers directly or indirectly.
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2,105,290,240.20
Proportion in total annual purchase amount for top five suppliers 33.36%
Ratio of the related purchase in total annual purchase amount from top five suppliers 26.86%
Information of top five suppliers of the Company
Serial Suppliers Purchasing amount (RMB) Ratio in annual total purchasing amount
1 Weifu Environment 1,515,266,186.15 24.01%
2 Robert Bosch 179,841,237.03 2.85%
3 Supplier 1 145,919,020.67 2.31%
4 Supplier 2 141,439,877.36 2.24%
5 Supplier 3 122,823,918.99 1.95%
Total -- 2,105,290,240.20 33.36%
Other notes of main suppliers of the Company
√Applicable □Not applicable
The Company has association with Weifu Environment and Robert Bosch Company, and directors, supervisors,
senior executives, core technicians and actual controller of the Company have no equity in main suppliers directly
or indirectly.
3. Expenses
In RMB
Increase/decrease
2018 2017 Note of major changes
y-o-y
Salary and wages expenses as well as
Sales expenses 237,839,472.28 194,854,780.37 22.06%
the guarantee fee increased
Administration expenses 585,005,385.75 539,493,552.86 8.44%
Financial expenses -17,393,580.55 7,316,996.79 -337.71% Interest income of deposit increased
R&D expenses 403,263,972.20 391,315,234.75 3.05%
4. R&D investment
√Applicable □ Not applicable
During the reporting period, the Company focused on the enterprise technology innovation strategy and planning,
adhered to the technological innovation, accelerated the research and development of key projects and products,
17
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
put forth effort to improve the industrialization of new products, and enhanced new power for the enterprises
development. The traditional energy products are mainly power engineering which meet the requirements of
energy saving and emission reduction, and continue to maintain the leading position in the industry. At the same
time, the company actively deploys new energy driving technologies and promotes the research and development
and capacity building in new fields such as hydrogen fuel cell technology and intelligent network. The smooth
implementation of these projects guarantees the company’s leading position in the auto parts industry in the
future.
R&D investment of the Company
2018 2017 Change ratio
Number of R&D (people) 1,109 1,132 -2.03%
Ratio of number of R&D 20.08% 20.92% -0.84%
R&D investment (Yuan) 403,263,972.20 391,315,234.75 3.05%
R&D investment accounted for R&D income 4.62% 4.34% 0.28%
R&D investment capitalization (Yuan) 0.00 0.00 0.00%
Capitalization R&D investment accounted for R&D
0.00% 0.00% 0.00%
investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Increase/decrea
Item 2018 2017
se y-o-y
Subtotal of cash inflow arising from operating activities 8,192,375,196.74 7,864,444,717.03 4.17%
Subtotal of cash outflow arising from operating activities 7,317,993,670.11 6,906,746,815.96 5.95%
Net cash flows arising from operating activities 874,381,526.63 957,697,901.07 -8.70%
Subtotal of cash inflow from investing activities 12,682,037,088.99 10,609,070,063.25 19.54%
Subtotal of cash outflow from investing activities 12,888,463,580.85 11,859,361,718.71 8.68%
Net cash flows arising from investing activities -206,426,491.86 -1,250,291,655.46
Subtotal of cash inflow from financing activities 471,198,213.94 254,520,000.00 85.13%
Subtotal of cash outflow from financing activities 1,686,046,969.98 799,122,114.37 110.99%
Net cash flows arising from financing activities -1,214,848,756.04 -544,602,114.37
Net increase of cash and cash equivalents -543,765,214.73 -846,784,323.89
18
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Cash outflow from financing activities has major growth mainly due to the greatly increase of profit distribution in the year
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√Applicable □Not applicable
Mainly due to the investment, and specific influencing factors found more in supplementary information of cash
flow statement carried in Annotation of the Report.
III. Analysis of the non-main business
√Applicable □Not applicable
In RMB
Ratio in
Amount Note Whether be sustainable
total profit
The joint ventures Bosch Automobile
Income mainly form the two joint
Diesel and Zhonglian Electronic have
ventures (Bosch Automobile Diesel
Investment income 1,955,668,055.33 75.15% stable production and operation , so
and Zhonglian Electronic) with stock
the investment returns can be
participated by the Company
sustained and stable
Gain/loss of fair
-490,329.13 -0.02%
value changes
Asset impairment 250,873,745.84 9.64%
Non-operating
1,264,830.90 0.05%
income
Non-operating
9,977,159.55 0.38%
expense
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2018 End of 2017
Ratio in Ratio in Ratio
Note of major changes
Amount total Amount total changes
assets assets
Monetary funds 2,616,321,740.73 12.52% 3,118,709,412.83 15.42% -2.90%
Account receivable 1,919,793,266.91 9.19% 1,995,577,830.90 9.86% -0.67%
19
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Inventory 1,438,528,714.59 6.89% 1,478,939,040.70 7.31% -0.42%
Investment real estate 21,906,134.52 0.10% 23,544,830.78 0.12% -0.02%
Long-term equity
4,976,773,946.74 23.82% 4,140,064,825.58 20.46% 3.36%
investments
Fixed assets 2,707,374,678.61 12.96% 2,584,872,628.54 12.78% 0.18%
Construction in progress at
period-end has major
growth over that of
Construction in progress 166,414,542.18 0.80% 100,345,461.28 0.50% 0.30% year-begin, mainly because
the equipment for technical
innovation and expansion
increased
Short-term borrowings 298,928,213.94 1.43% 243,000,000.00 1.20% 0.23%
Long-term loans 30,000,000.00 0.14% 45,000,000.00 0.22% -0.08%
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Amount
Accumulative Devaluation
Amount at the Changes of fair value of
changes of fair of Amount of sale Amount at
Items beginning gains/losses in this purchase
value reckoned withdrawing in the period period-end
period period in the
into equity in the period
period
Financial assets
3.Available-for-
121,066,008.
sale financial 266,376,600.00 -117,053,064.00 -19,809,442.95 37,869,361.83
00
assets
Subtotal of 121,066,008.
266,376,600.00 -117,053,064.00 -19,809,442.95 37,869,361.83
financial assets 00
121,066,008.
Above total 266,376,600.00 -117,053,064.00 -19,809,442.95 37,869,361.83
00
Financial
0.00 -490,329.13 0.00 0.00 490,329.13
liabilities
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
Item Book value at Restriction reason
period-end
Monetary funds 1,450,000.00 Cash deposit paid for LC
Monetary funds 79,315,732.67 Cash deposit paid for bank acceptance
20
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Monetary funds 881,868.57 Court freeze
Notes receivable 423,527,758.19 Notes pledge for bank acceptance
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 name of
Available-for-sale
112,850,891.16 the Company and other seven respondents and the third party Shenzhen Hejun Chuangye
financial assets
Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) 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 618,026,250.59
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√Applicable □Not applicable
In RMB
Book
Cumulat Profit
Account value at Current Book
Va Short ive fair Current and loss
Code of Initial ing the gain/los Current value at Account
riety of form of value purchas in the Capital
securitie investm measure beginni s of fair sales the end ing
securitie securitie changes e Reporti Source
s ent cost ment ng of value amount of the subject
s s in amount ng
model the changes period
equity Period
period
Availabl
Domesti
Measure e-for-sal
c and 199,208 186,966 -73,250, -20,229, 37,869, -73,196, 85,458, Own
600841 SDEC d by fair e
foreign ,000.00 ,000.00 064.00 810.45 361.83 378.59 408.00 funds
value financia
stocks
l assets
Availabl
Domesti
Miracle Measure e-for-sal
c and 69,331, 79,410, -43,803, 420,367 -43,567, 35,607, Own
002009 Logistic d by fair e
foreign 500.00 600.00 000.00 .50 500.00 600.00 funds
s value financia
stocks
l assets
21
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
-117,05 -116,76
268,539 266,376 -19,809, 37,869, 121,066
Total -- 3,064.0 0.00 3,878.5 -- --
,500.00 ,600.00 442.94 361.83 ,008.00
0 9
Disclosure date of 24 March 2012
securities investment
approval of the Board 4 June 2013
Disclosure date of
securities investment
approval of the Shareholder
Meeting (if applicable)
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
No application of raised proceeds in the period
VI. Significant asset and equity sales
1. Significant asset sales
□ Applicable √ Not applicable
No significant assets being sold in the Period
2. Significant equity sales
□ Applicable √ Not applicable
VII. Analysis of the main equity participation and controlling subsidiary
√ Applicable □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
In RMB
Company Register Operating Operating
Type Main business Total assets Net assets Net profit
name capital revenue profit
Exhaust
Weifu 502,596,3 2,996,351,016 1,629,384,624. 2,800,874,73 74,092,173.7
Subsidiary after-treatment 74,556,894.40
Leader 00.00 .44 82 3.81 8
system products
22
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Weifu Fuel injection 346,286,8 1,337,513,352 613,545,903. 233,693,081.
Subsidiary 973,609,125.61 208,505,596.11
Jinning system products 25.80 .71 22 69
Bosch Equity US$
Fuel injection 12,798,513,74 8,698,465,606. 15,539,892,0 4,003,245,86 3,545,497,532.3
Automobile participation 241,000,0
system products 0.22 92 04.67 6.33 3
Diesel enterprise 00.00
Equity
Zhonglian Gasoline system 600,620,0 5,431,102,281 5,425,343,448. 23,186,214.3 1,834,686,45 1,834,198,811.7
participation
Electronic products 00.00 .22 82 8 8.07 8
enterprise
Subsidiary obtained and disposed in the Period
□Applicable √Not applicable
Explanation on holding equity participation enterprise
In the reporting period, Weifu Jinning’s land, housing and housing attachments located at No. 69, Taiping Village,
Yanziji Town, Qixia District were levied by the government, accordingly gains of disposal of assets increased by
100,824,053.07 yuan.
VIII. The structured subject controlled by the Company
□ Applicable √ Not applicable
IX. Prospects for future development
(I) Industry competition pattern and development trend
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 auto 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 increasingly perfect.
(ii)Development strategy of the Company
The Company has became the backbone enterprise of the core parts of domestic automobile (power engineering)
after 60 years of cultivation. 80% of the current core business of auto parts are matching with electronic control
system and with electronic control realized, which owes a leading position in self-owned brand. The Company
give a positive response to national new energy and intelligent networking strategy, core with the auto parts
industry chain and supplemented by other relevant fields, make a layout for new energy automobile drive
technology, improve hydrogen fuel battery technology as well as the research and development capability of
intelligent networking technology. Market target: consolidating the current business market position and
23
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
positioning new business for the potential market; technical target: strengthen the technical strength of pillar
business, lay out the frontier technology for new business, actively exploit new fields based on the current
business. And making efforts to achieved the enterprise goals of leaders of automotive core parts.
(iii) Operation plan for year of 2019
In 2019, the market environment is still complicated and severe, many factors such as macro economy, automobile
industry cycle, automobile consumption policy and implementation of the Guo VI Standard are still uncertain,
opportunities and challenges coexist, the opportunities are inspiring, and challenges are alarming. In the new year,
the company will revolve around the development goals of “high quality, stable volume, and fine management” and
complete the following key tasks:
1. Figure out the situation, grasp the general trend, conform to the trend, conform to the mainstream, change with
the situation, face the difficulties, seek opportunities, and open up projects. The rapid improvement can meet the
Guo VI Standard and the technical quality level of T4 products, enhance the project acquisition ability of products
on the client side, locate at key customers, leading products and key projects, and strive to increase the market share
of key products. Promote the collaborative marketing of traditional product systems to further expand the
aftermarket and overseas markets.
2. Focus on management quality, optimize product structure, optimize input-output structure, carefully analyze cost
structure, find out the focus of cost reduction and the factors affecting cost increase and profit reduction,
continuously control and gradually reduce manufacturing costs; optimize manufacturing process control, make full
use of interconnection technology, strengthen data interconnection and interoperability, and further enhance the
ability of data collection, analysis and prediction. Continuously improve the manufacturing process management,
strengthen flexible and agile production, realize the intelligent deployment capability of manufacturing process,
further improve the lean manufacturing production level; optimize operational support management, smooth the
processes, build business project information management platform, unblock business system barriers, and
efficiently adjust and control, improve quality and efficiency, improve operational efficiency; promote the
construction of human resources platform, further improve the talent selection, training and management
mechanism, and comprehensively optimize and improve the human resource management. Constantly strengthen
the foundation of development.
3. Struggle to act by innovation driven, actively create new situations, and form a dual-engine drive model.
Consolidate the existing business market position, accelerate the development of traditional business products, take
a position in the potential market for innovative business, actively promote the investment in emerging businesses,
accelerate the layout of forward-looking project products of innovative business, promote the construction of
platform projects, and promote the R&D capability of new business products, and improve the research and
development system so as to lay a foundation for the company’s sustainable development.
IV Risks and response measures
(1) Macroeconomic and market risks
China’s economy has shifted from a high-speed growth stage to a high-quality development stage, the market may
continue to show unexpected changes, but we believe that the Chinese economy is fully capable of maintaining a
reasonable growth range. At the same time, the Chinese auto market has entered a period of steady growth, and it
24
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
will also pay more attention to high-quality development in the future.
Response measures: We must change the habitual and deterministic thinking model to cope with future
uncertainties, rely on the existing business, actively expand new areas, consolidate the existing business market
position, and take a position in the new business potential market, and strive to improve the company’s core
competitiveness and overall ability to resist risks.
(2) Operating management and control risks
With the continuous expansion of the company’s asset scale and business scope, the company has a large
management span and many links in terms of personnel, business, finance and capital, and there are potential risks
of operating management and control.
Response measures:
The company will continue to promote the optimization and improvement of internal management, focus on
strengthening compliance management, further improve the system and processes, promote the institutionalization
and standardization of company management, and control operational risks.
(3) Risk of fluctuations in raw material prices
The company’s main raw materials include various grades of steel, aluminum, precious metals, etc., and the
continued rise in prices will bring the company the risk of rising costs.
Response measures: Pay close attention to the price trend of the company’s main raw materials, choose the right
timing for procurement, and make reasonable strategic reserves to resolve the risk of fluctuations in raw material
prices.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time Way Type Basic situation index of investigation
2018-06-27 Spot research Institution The scene of the shareholders’ general meeting
2018-01-01- The Company answered 151 questions for investors online through the
Written inquiry Individual
2018-12-31 investor relations interactive platform(http://irm.p5w.net/dqhd/sichuan/)
2018-01-01- Telephone Basic condition of the Company, and views on market, communication
Individual
2018-12-31 communication with investors by telephone more than 300
Reception (times) 460
Number of hospitality 50
Number of individual reception 260
Number of other reception 151
Disclosed, released or let out major undisclosed
N
information (Y/N)
25
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
√ Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations in Article of Association
2. In reporting period, the Company implemented the profit distribution for year of 2017, based on the total share
capital 1,008,950,570 shares, distributed 12.00 Yuan (tax included) bonus in cash for every 10 shares held, no
capitalization from public reserves. The plan was completed in July 2018. The implementation of the Company's
cash dividend policy is in compliance with the provisions of Articles of Association, relevant decision-making
procedures are complete and fully listen to the views of independent directors and minority shareholders and
maintain the legitimate rights and interests of minority shareholders.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Yes
Well-defined and clearly dividend standards and proportion (Y/N): Yes
Completed relevant decision-making process and mechanism (Y/N): Yes
Independent directors perform duties completely and play a proper role (Y/N): Yes
Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully
Yes
protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed
Not applicable
(Y/N):
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
The profit distribution plan for 2018: based on total share capital of 1,008,950,570 shares at end of 2018,
distribute cash dividend of RMB 12.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The profit distribution plan for 2017: based on total share capital of 1,008,950,570 shares at end of 2017,
distribute cash dividend of RMB 12.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan was completed in July 2018.
The profit distribution plan for 2016: based on total share capital of 1,008,950,570 shares at end of 2016,
distribute cash dividend of RMB 6.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan was completed in July 2017.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Net profit Ratio of the Proportion Ratio of the cash Ratio of the
attributable to cash bonus in for cash bonus by other total cash
Year for Amount for cash common stock net profit bonus by ways in net Total cash bonus bonus (other
bonus bonus (tax shareholders of attributable to other profit (including other ways included)
shares included) listed company common stock ways(i.e. attributable to ways) in net profit
in consolidation shareholders of share common stock attributable to
statement for listed company buy-backs) shareholders of common stock
26
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
bonus year contained in listed company shareholders of
consolidation contained in listed company
statement consolidation contained in
statement consolidation
statement
2018 1,210,740,684.00 2,396,077,415.21 50.53% 0.00 0.00% 1,210,740,684.00 50.53%
2017 1,210,740,684.00 2,571,339,490.04 47.09% 0.00 0.00% 1,210,740,684.00 47.09%
2016 605,370,342.00 1,672,224,317.05 36.20% 0.00 0.00% 605,370,342.00 36.20%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 12.00
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1,008,950,570
Total cash dividend(RMB) (Tax included) 1,210,740,684.00
Cash dividend by other ways (share buy-back included) (RMB) 0.00
Total cash dividend (other ways included) (RMB) 1,210,740,684.00
Distributable profits (RMB) 9,340,610,451.36
Ratio of the total cash dividend (other ways included) in total profit distribution 100%
Cash dividend policy:
Other
Detail explanation on profit distribution or capitalization from capital public reserve
Pursuit to the Standard Unqualified Auditor’s Report for year of 2018 issued by Jiangsu Gongzheng, the profit available for
distribution of the parent company for year of 2018 are as: net profit of the parent company for year of 2018 amount as
2,190,550,000 Yuan, plus retained profit at beginning of the year 8,360,801,100 Yuan and deducted the divided 1,210,740,700 Yuan
for year of 2017, the distributable profit at end of the period amounted as 9,340,610,400Yuan. Profit distribution plan for year of
2018: on base of the total 1,008,950,570 shares at end of 2018, distributed 12.00 Yuan (tax included) in cash for each 10 shares, no
bonus, and no transfer of reserve to common shares. The remaining retained profit carried forward to next year. Profits allocate for
year of 2018 amounting to 1,210,740,700 Yuan.
III. Implementation of commitment
1. Commitments that the actual controller, shareholders, related party, buyers and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
27
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
No commitments that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the period
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√Applicable □ Not applicable
(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
Item Amount affected (+,-)
accounting policy
Consolidate financial statement Financial statement of parent company
The Company Notes receivable -1,464,256,934.83 -449,209,323.02
prepared the Account receivable -1,995,577,830.90 -1,047,012,889.92
financial statement of Note receivable and account 3,459,834,765.73 1,496,222,212.94
2018 in line with the receivable
format regulated in
Interest receivable -2,281,979.17 -97,627.77
CK No. [2018] 15,
Other receivables 2,281,979.17 97,627.77
and changed the
Note payable -947,976,759.10 -459,762,950.78
presentation of
Account payable -2,570,956,205.83 -1,082,206,882.07
relevant financial
statements by Note payable and account 3,518,932,964.93 1,541,969,832.85
retrospective method payable
Interest payable -401,928.43 -93,777.78
28
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Other accounts payable 401,928.43 93,777.78
Long-term account payable 18,265,082.11 --
Special account payable -18,265,082.11 --
Administration expenses -391,315,234.75 -119,083,205.53
R&D expenses 391,315,234.75 119,083,205.53
VII. 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.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√Applicable □Not applicable
Way of obtained the Time when equity Ratio of fund
Content changed Company
equity obtained contribution
Nanchang Weifu Leader Auto Parts &
Consolidate scope increased Newly established 2018-3-8 100.00%
Components Co., Ltd.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Jiangsu Gongzheng Tianye Certified Public
Name of domestic accounting firm
Accountants (Special General Partnership)
Remuneration for domestic accounting firm (in 10 thousand Yuan) 158
Continuous life of auditing service for domestic accounting firm 27
Name of domestic CPA Bo Lingjing, Meng Yin
Continuous life of auditing service for domestic accounting firm 4
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
Being deliberated in Annual Shareholders General Meeting of 2017, Jiangsu Gongzheng was appointed as audit
accounting firm for internal control of the Company for year of 2018. In the Period, auditing charge for internal
control amounting to 0.22 million Yuan
29
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitration of the Company
√Applicable □Not applicable
Amount
Whether Trial Results Judgment
Related Progress of
Basic Situation of Formed and Effects Implementation Disclosure
to the Litigation Disclosure Index
Litigation (Arbitration) Accrued of Litigation of Litigation Date
Case (Arbitration)
Liabilities (Arbitration) (Arbitration)
(Yuan)
On March 6, 2017, the 21,703 N By the company’s This Not yet 8 March (Announcement No.:
company received the application for litigation implemented 2017 2017-002) published
civil ruling reconsideration, will not on Juchao Website
No.(2016)Y03MC2490 Shenzhen affect the (www.cninfo.com.cn)
and No.(2016) Intermediate company’s
Y03MC2492 from People's Court daily
Shenzhen Intermediate deemed the total operating
People's Court about the assets that Cinda activities for
dispute case that the Company applied the time
plaintiff applicant China for preservation to being
Cinda Asset Management be RMB
Co., Ltd. Shenzhen 217,027,697.23.
Branch (hereinafter The total value of
referred to as “Cinda 15.3 million shares
Company”) appealed the of SDEC Stock
respondent Weifu High and 4.71 million
Technology and other shares of Miracle
seven respondents and the Logistics held by
shareholders of the third the company has
party Hejun Company exceeded the total
damaged the interests of assets that Cinda
corporate creditors, which Company applied
adopted the mandatory for preservation,
measures to freeze the therefore,
assets with value of RMB 3,560,898 shares
217 million under the of SDEC Stock
name of the Company and held by the
other seven respondents company was
and Hejun Company. unfrozen. Up to
Freeze 4.71 million shares the end of the
of Miracle Logistics and reporting period,
15.3 million shares of the company’s
SDEC Stock held by the frozen assets were
company. as follows: 4.71
million shares of
Miracles Logistics
held by the
company and its
fruits, and
11,739,102 shares
of SDEC Stock
held by the
company and its
30
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
fruits. At present,
this litigation is in
the first instance
(the first trial held
on 24 Sept. 2017,
and follow trial
will wait for notice
by the court).
The Company has applied 3,300 N The Company has There are no Relevant works 6 Dec. (Announcement No.:
to Futian People's Court applied to Futian impact on are in process 2017 2017-023) published
of Shenzhen for People's Court of daily on Juchao Website
compulsory liquidation Shenzhen for operation (www.cninfo.com.cn)
with Hejun Company compulsory activities of
liquidation with the
Hejun Company. Company
The civil ruling
paper (Yue (0304)
QS[2017] No.
5)made by
Shenzhen Futian
District People’s
Court ruled that
Hejun Company
should be made
compulsory
liquidation. The
Company will
actively cooperate
with the court to
work on the
liquidation to
protect its
legitimate rights
and interests.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
√ Applicable □ Not applicable
On 20 June 2014, the Company held the 2013 AGM which deliberated "the Company’s incentive fund
implementation methods", the Company has fully implemented it during the reporting period, completed the
medium and long term special incentive allocation for core talents, farthest mobilized the enthusiasm and
creativity of employees, stabilized the employees, attracted the high-quality talents, and enhance the cohesive
force in enterprise.
31
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
XVI. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Whethe
Related
Trading r over Clearin
Content transacti Proporti Availabl
Type of limit the g form Index
of Pricing Related on on in e Date of
Related Relation related approve approve for of
related principl transacti amount similar similar disclosu
party ship transacti d (in 10 d related disclos
transacti e on price (in 10 transacti market re
on thousan limited transacti ure
on thousan ons price
d Yuan) or not on
d Yuan)
(Y/N)
Weifu Associat Accordi Notice
Procure Procure Fair
Precision ed Market 4,465.7 ng to Market 17 April No:
ment of ment of market 0.71% 5,000 N
Machiner enterpri price 2 the price 2018 2018-0
goods goods pricing
y se contract 09
Associat
ed
enterpri
se, Accordi Notice
Bosch Procure Procure Fair
controlli Market 6,848.5 ng to Market 17 April No:
Automobi ment of ment of market 1.09% 7,000 N
ng price 6 the price 2018 2018-0
le Diesel goods goods pricing
subsidia contract 09
ry of
Robert
Bosch
Joint
Accordi Notice
Weifu venture Procure Procure Fair
Market 151,526 ng to Market 17 April No:
Environm of ment of ment of market 24.01% 192,500 N
price .62 the price 2018 2018-0
ent Weifu goods goods pricing
contract 09
Leader
Second
largest
Accordi Notice
sharehol Procure Procure Fair
Robert Market 17,984. ng to Market 17 April No:
der of ment of ment of market 2.85% 14,300 Y
Bosch price 12 the price 2018 2018-0
the goods goods pricing
contract 09
Compan
y
Weifu Associat Accordi Notice
Fair
Precision ed Sales of Sales of Market ng to Market 17 April No:
market 378.52 0.04% 300 Y
Machiner enterpri goods goods price the price 2018 2018-0
pricing
y se contract 09
Associat
ed
enterpri
se、 Accordi Notice
Bosch Fair
Sales of Sales of Market 272,291 ng to Market 17 April No:
Automobi controlli market 31.22% 300,000 N
ng goods goods price .93 the price 2018 2018-0
le Diesel pricing
subsidia contract 09
ry of
Robert
Bosch
Joint
Accordi Notice
Weifu venture Fair
Sales of Sales of Market 5,018.1 ng to Market 17 April No:
Environm of market 0.58% 5,300 N
goods goods price 9 the price 2018 2018-0
ent Weifu pricing
contract 09
Leader
Second Accordi Notice
Robert largest Sales of Sales of Fair Market 72,070. ng to Market 17 April No:
sharehol goods goods market 8.26% 77,220 N
Bosch price 94 the price 2018 2018-0
der of pricing
contract 09
the
32
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Compan
y
Associat
ed
Payable
enterpri
for
se, Accordi Notice
Bosch labour Fair
controlli Market ng to Market 17 April No:
Automobi Other and market 135.55 100 Y
ng price the price 2018 2018-0
le Diesel technica pricing
subsidia contract 09
l
ry of
services
Robert
Bosch
Second
largest Payable
Accordi Notice
sharehol for Fair
Robert Market ng to Market 17 April No:
der of Other technica market 348.48 550 N
Bosch price the price 2018 2018-0
the l pricing
contract 09
Compan services
y
Joint
Lease Accordi Notice
Weifu venture Fair
fees Market ng to Market 17 April No:
Environm of Other market 250.81 255 N
receivab price the price 2018 2018-0
ent Weifu pricing
le contract 09
Leader
Associat
ed
enterpri
se、 Purchas Accordi Notice
Bosch Fair
controlli Other e of Market 1,962.9 ng to Market 17 April No:
Automobi market 5,000 N
fixed price 9 the price 2018 2018-0
le Diesel ng pricing
subsidia assets contract 09
ry of
Robert
Bosch
Second
largest
Purchas Accordi
sharehol Fair
Robert e of Market ng to Market
der of Other market 357.6 Y
Bosch fixed price the price
the pricing
assets contract
Compan
y
Joint
Purchas Accordi
Weifu venture Fair
e of Market ng to Market
Environm of Other market 0.99 Y
fixed price the price
ent Weifu pricing
assets contract
Leader
Joint
Accordi
Weifu venture Sales of Fair
Market ng to Market
Environm of Other fixed market 18.78 Y
price the price
ent Weifu assets pricing
contract
Leader
First
majority
Accordi
sharehol Fair
Industry Interest Market ng to Market
der of Other market 21.44 Y
Group paying price the price
the pricing
contract
Compan
y
533,681
Total -- -- -- 607,525 -- -- -- -- --
.24
Detail of sales return with major
Not applicable
amount involved
33
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Being deliberated and approved by AGM of 2017, total related transaction for year of 2018
predicted as 6075.25 million Yuan, actually 5336.8124 million Yuan occurred in the Period,
Report the actual implementation of the related transaction classified according to types are as: 1. it estimated that purchasing
the daily related transactions which goods and labor service from related party in 2018 will up to 2188 million Yuan, while
were projected about their total 1808.2502 million Yuan occurred actually in the Period; 2. it estimated that sales of goods
amount by types during the reporting and labor service to related party in 2018 will up to 3828.2 million Yuan, while 3497.5958
period(if applicable) million Yuan actually occurred in the period; 3. it estimated that other related transactions
with related party for year of 2018 will up to 59.05 million Yuan while 30.9664 million
Yuan actually occurred.
Reasons for major differences
between trading price and market Not applicable
reference price
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
34
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company and subsidiary (Barring the guarantee for subsidiaries)
Related Guarante
Announce Actual e for
Name of the Company Guarantee Actual date of Guarantee Guarantee Implemen
ment guarantee related
guaranteed limit happening type term ted (Y/N)
disclosure limit party
date (Y/N)
Guarantee of the Company for subsidiaries
Related Guarante
Announce Actual e for
Name of the Company Guarantee Actual date of Guarantee Guarantee Implemen
ment guarantee related
guaranteed limit happening type term ted (Y/N)
disclosure limit party
date (Y/N)
Ningbo Tianli
27 Oct. Joint liability
Turbocharging 6,000 4,500 5 N N
2016 guaranty
Technology Co., Ltd.
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in report 0 4,500
subsidiaries in report period
period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 6,000 4,500
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee of the subsidiaries for the subsidiaries
Related Guarante
Announce Actual e for
Name of the Company Guarantee Actual date of Guarantee Guarantee Implemen
ment guarantee related
guaranteed limit happening type term ted (Y/N)
disclosure limit party
date (Y/N)
Total amount of guarantee of the Company( total of three above mentioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period occurred guarantee in report 4,500
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 6,000 guarantee at the end of 4,500
period (A3+B3+C3) report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the net
0.28%
assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed parties
0
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 0
Explanations on possibly bearing joint and several liquidating
Not applicable
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures
Not applicable
(if applicable)
35
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Explanation on guarantee with composite way
(2)Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Entrust others to cash asset management
(1) Trust financing
√ Applicable □ Not applicable
Trust financing during the period
In 10 thousand Yuan
Specific type Sources of funds Amount occurred Undue balance Overdue amount
Financing products Free funds 334,000 238,150 0
Financial products of securities firms Free funds 13,000 10,000 0
Trust financial products Free funds 112,790 97,144.81 0
Other type Free funds 166,150 106,000 0
Total 625,940 451,294.81 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
√ Applicable □ Not applicable
In 10 thousand Yuan
Amou
nt of
Summar
reserv Wheth
Actual Wheth y of the
Capita Antici e for er
Refere Actual collect er has items
l Criteri pated devalu appro
Trustee Source nce gains/l ed entrust and
Truste Amou Start End invest a for incom ation ved by
institutio Type of annual osses gains/l financ related
e type nt date date ment fixing e (if of legal
n r name funds rate of in osses e plan query
purpos reward applic withdr proced
return period in in the index (if
e able) awing ure
period future applicabl
(if (Y/N)
e)
applic
able)
Non-gu
Financ
arantee 4.05% 15,684 14,162
791,00 Owne 3 Jan. 8 Apr. ial
Bank Bank d Y Y
0 d fund 2018 2019 produc Refere -5.7% .5 .93
floating Collec
ts
income nce Notice
ted
annual No.:
Collec accord
Non-gu rate of 2018-010
tive ing to
Securi arantee 31 16 return 4.6% on 17
Securitie Owne assets the
ties d 43,000 Jan. Jan. by the 730.11 306.15 Y Y April
s trader d fund manag -5.5% contra
trader floating 2018 2019 contra 2018
ement ct
income ct
plan
Trust Trust Non-gu 233,89 Owne 4 Jan. 28 Collec 5.1%
7,738. 7,066.
Y Y
arantee 4 d fund 2018 Jan. tion 81 41
36
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
d 2019 trust -9.5%
floating plan
income
Non-gu Fixed
Other Other arantee incom 5%
122,00 Owne 4 Jan. 9 Sept. 5,521. 9,590.
(Fund (Fund d e fund Y Y
0 d fund 2018 2019 -9% 57 71
etc.) etc.) floating produc
income ts
1,189, 29,674 31,126
Total -- -- -- -- -- -- -- -- -- --
894 .99 .2
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVIII. Social responsibility
1. Performance of social responsibility
As for the Social Responsibility Report 2018 of the Company, found more in the Juchao Website (www.cninfo.com.cn), the
information disclosure website appointed by Shenzhen Stock Exchange
2. Precise poverty alleviation social responsibility
There are no precise poverty alleviation carried out in the period and no follow plan either
3. Environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
No
The company and its subsidiaries are not the key pollutant discharge units announced by the State Environmental Protection
Department. The company attaches great importance to environmental protection management. During the production and operation
process, the company strictly abides by relevant national and local environmental protection laws, regulations and rules, and timely
acquires, updates and conveys relevant environmental laws, regulations and standards, and conducts the company’s internal daily
environmental management based on new regulations and standards., actively fulfills corporate environmental protection obligations,
and implements national energy conservation and emission reduction guidelines and policies.
XIX. Explanation on other significant events
□Applicable √ Not applicable
There are no explanation on other significant events in the period
37
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
XX. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
1. Proposed application for listing in the national middle and small enterprises stock transfer system by the controlling subsidiary
Weifu Tianli
On 25 October 2016, the 9th session of the 8th BOD consider and approve the proposal relating to proposed application for listing in
the national middle and small enterprises stock transfer system by the controlling subsidiary Weifu Tianli Pressure Technology Co.,
Ltd; on 30 December 2016, Weifu Tianli was served with the notice of acceptance from the National Equities Exchange and
Quotations Company Limited (GP2016120120). The relevant announcements (No.: 2016-020, 2016-023 and 2017-001) were
published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Information Website
(http://www.cninfo.com.cn).Other state-owned shareholders of Weifu Tianli are unable to obtain the approval of state-owned assets,
so the matter is stagnant at present. Shareholders meeting of the Weifu Tianli decided to cancel the listing application of the National
Equities Exchange and Quotations
38
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitalization
Proportio Bonus
Amount shares of public Others Subtotal Amount Proportion
n shares
issued reserve
I. Restricted shares 78,577 0.01% 1,502 1,502 80,079 0.01%
3. Other domestic shares 78,577 0.01% 1,502 1,502 80,079 0.01%
Domestic natural
78,577 0.01% 1,502 1,502 80,079 0.01%
person’s shares
II. Unrestricted shares 1,008,871,993 99.99% -1,502 -1,502 1,008,870,491 99.99%
1. RMB Ordinary shares 836,491,993 82.90% -1,502 -1,502 836,490,491 82.90%
2. Domestically listed
172,380,000 17.09% 172,380,000 17.09%
foreign shares
III. Total shares 1,008,950,570 100.00% 1,008,950,570 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√ Applicable □Not applicable
39
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
In Share
Shares with
Shares Shares Shares
restriction Date release for
Shareholder restricted at released in the restricted at Restriction cause
increased in the trading
period-begin period period-end
period
Lock-up shares for senior
executive (elected as supervisor Not applicable
Dai Lizhong 1,500 1,500
in general election of
supervisory committee)
Total 0 0 1,500 1,500 -- --
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Current internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
Total common Total common stock Total preference shareholders with voting
stock shareholders at end of shareholders with voting rights recovered at end
shareholders in 60,946 last month before 54,791 rights recovered at end 0 of last month before 0
reporting annual report of reporting period (if annual report disclosed
period-end disclosed applicable) (see note 8) (if applicable) (see
note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Amount of Number of share
Proportio Amount of
shareholders at Changes in un-restrict pledged/frozen
Full name of Nature of n of
restricted
Shareholders shareholder shares the end of report report period ed shares State of
held shares held Amount
period held share
Wuxi Industry
State-owned
Development Group 20.22% 204,059,398 0
corporate
Co., Ltd.
ROBERT BOSCH Foreign 14.16% 142,841,400 0
40
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
GMBH corporate
Hong Kong Securities Foreign
4.01% 40,482,044 20,983,702
Clearing Company corporate
Bank of
Communication –
HSBC Jixin Double
Other 2.64% 26,612,573 26,612,573
Core Strategy Mixed
Securities Investment
Fund
BBH BOS S/A
Foreign
FIDELITY FD - 1.78% 18,002,797 3,243,303
corporate
CHINA FOCUS FD
Central Huijin Assets State-owned
1.27% 12,811,200 0
Management Co., Ltd. corporate
Zhonghai Trust Co.,
Ltd. - Jinhai No.9
Other 0.79% 7,931,752 7,931,752
Securities Investment
Collective Fund Trust
Agricultural Bank of
Other 0.62% 6,211,068 4,090,419
China - CS 500 ETF
FIDELITY INVMT
Foreign
TRT FIDELITY INTL 0.57% 5,791,618 1,378,786
corporate
SMALL CAP FUND
Basic pension fund--
Other 0.50% 5,028,007 5,028,007
1207 portfolio
Strategy investor or general legal
person becoming the top 10
Not applicable
shareholders by placing new shares (if
applicable) (see note 3)
Among the top ten shareholders, there has no associated relationship between Wuxi
Industry Development Croup Co., Ltd. and other shareholders, the first largest shareholder
Explanation on associated relationship
of the Company; and they do not belong to the persons acting in concert regulated by the
among the aforesaid shareholders
Management Measure of Information Disclosure on Change of Shareholding for Listed
Company.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict Type of shares
Shareholders’ name shares held at
Type Amount
Period-end
Wuxi Industry Development Group Co., Ltd. 204,059,398 RMB common shares 204,059,398
ROBERT BOSCH GMBH 142,841,400 RMB common shares 115,260,600
41
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Domestically listed
27,580,800
foreign shares
Hong Kong Securities Clearing Company 40,482,044 RMB common shares 40,482,044
Bank of Communication – HSBC Jixin Double Core Strategy
26,612,573 RMB common shares 26,612,573
Mixed Securities Investment Fund
Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 18,002,797 18,002,797
foreign shares
Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common shares 12,811,200
Zhonghai Trust Co., Ltd. - Jinhai No.9 Securities Investment
7,931,752 RMB common shares 7,931,752
Collective Fund Trust
Agricultural Bank of China - CS 500 ETF 6,211,068 RMB common shares 6,211,068
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP Domestically listed
5,791,618 5,791,618
FUND foreign shares
Basic pension fund-- 1207 portfolio 5,028,007 RMB common shares 5,028,007
Among the top ten shareholders, there has no associated relationship
between Wuxi Industry Development Croup Co., Ltd. and other
Expiation on associated relationship or consistent actors
shareholders, the first largest shareholder of the Company; and they
within the top 10 un-restrict shareholders and between top 10
do not belong to the persons acting in concert regulated by the
un-restrict shareholders and top 10 shareholders
Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Explanation on top 10 shareholders involving margin
Not applicable
business (if applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Controlling Legal person/person Date of
Organization code Main operation business
shareholders in charge of the unit foundation
Authorizing the state-owned assets operation
within a certain areas, investment management
Wuxi Industry
5 October of significant project, investment and
Development Group Jiang Guoxiong 913202001360026543
1995 development of manufacturing and services
Co., Ltd.
and venture capital in high-tech achievement,
entrust enterprise and management etc.
Equity of other
domestic/oversea First majority shareholder of the Company—Industry Group is the controlling shareholder of Wuxi Taiji
listed company Industry Corporation Limited (stock code: 600667)
control by controlling
42
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
shareholder as well as
stock-joint in report
period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller and person acting in concert of the Company
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal person/person Date of Organization
Actual controlling shareholders Main operation business
in charge of the unit foundation code
State-owned Assets Supervision &
State-owned Assets
Administration Commission of Wuxi ～ ～
Administration
Municipality of Jiangsu Province
Equity of domestic/oversea listed
company control by actual controller in Not applicable
report period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
Property right and controlling relationship between the actual controller and the Company is as follow:
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.
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
43
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □Not applicable
Corporate Legal rep./person Dated Register
Main business or management activity
shareholders in charge of unit founded capital
Development, manufacture and sales of automotive equipment and
engine equipment; engaged in electro-technical, electronic
15 1200 technology, machinery manufacturing and optical system as well
ROBERT Heiko Carrie,
November million as produce iron, metal and plastic products and similar commodity.
BOSCH GMBH Bettina Holzwarth
1886 euros The company engaged in varies trading business concerned with
its business scope and established relevant company concerned
with its business scope.
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
44
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
45
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amount Amount
Shares Shares
of shares of shares
held at Other held at
Working Sex Start dated of End date of increased decreased
Title (M/F Age period-be changes period-en
Name status office term office term in this in this
)
gin (share) d
period period
(Share) (Share)
(Share) (Share)
Chen Currently
Chairman M 51 7 March 2012 26 June 2021 34,753 34,753
Xuejun in office
Rudolf Vice Currently
M 61 7 March 2012 26 June 2021
Maier Chairman in office
Vice
Wang Currently
Chairman, M 52 7 March 2012 26 June 2021 20,781 20,781
Xiaodong in office
GM
Director,D
eputy
General
Ou Currently
Manager M 52 7 March 2012 26 June 2021 10,000 10,000
Jianbin in office
and
financing
Charger
Zhang Currently
Director M 55 28 May 2015 26 June 2021
Xiaogeng in office
Chen Currently
Director M 57 7 March 2012 26 June 2021
Yudong in office
Hua Currently
Director F 54 7 March 2012 26 June 2021
Wanrong in office
Independe Currently
Yu Xiaoli F 55 27 June 2018 26 June 2021
nt Director in office
Lou Independe Currently
M 55 28 May 2015 26 June 2021
Diming nt Director in office
Jin Independe Currently
M 68 28 May 2015 26 June 2021
Zhangluo nt Director in office
46
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Xu Independe Currently
M 55 28 May 2015 26 June 2021
Xiaofang nt Director in office
Chairman
of the
Shi Currently
Supervisor M 56 7 March 2012 26 June 2021 12,673 12,673
Xingyuan in office
y
Committee
Ma Currently
Supervisor M 44 27 June 2018 26 June 2021
Yuzhou in office
Dai Currently
Supervisor M 43 27 June 2018 26 June 2021 2,000 2,000
Lizhong in office
Miao Deputy Currently
M 55 16 April 2003 26 June 2021 10,000 10,000
Yuming GM in office
Xu Deputy Currently
M 47 7 March 2012 26 June 2021 13,000 13,000
Yunfeng GM in office
Secretary
Zhou Currently
of the M 55 9 June 2005 26 June 2021 3,565 3,565
Weixing in office
Board
Independe Office
Xing Min M 64 7 March 2012 26 June 2018
nt Director leaving
Zhang Office
Supervisor M 54 28 May 2015 26 June 2018 500 -500
Zhenting leaving
Office
Liu Jinjun Supervisor M 43 7 March 2012 26 June 2018
leaving
Total -- -- -- -- -- -- 105,272 2,000 -500 106,772
II. Changes of directors, supervisors and senior executives
√Applicable □Not applicable
Name Position Type Date Cause
Independent Office leaving for office term
Xing Min 26 June 2018 General election of the BOD
Director expires
Office leaving for office term
Zhang Zhenting Supervisor 26 June 2018 General election of the Supervisory Committee
expires
Office leaving for office term
Liu Jinjun Supervisor 26 June 2018 General election of the Supervisory Committee
expires
47
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
Mr. Chen Xuejun, was born in May 1967, communist party members, a university background and a senior
economist. He has served as Director and Party branch secretary of the Company mining and supply department,
Director of Party Committee Office. He has served as chairman of supervisory committee of the Company, deputy
chairman and General Manager of the Company. He currently serves as Chairman of the Company, party
secretary of the Company and director of the majority shareholder of the Company – Industry Group.
Mr. Rudolf Maier, was born in October 1957, a German citizenship with a doctor degree. He previously was GM
of Bosch Automobile Diesel System Co., Ltd., executive deputy president of diesel system division and chairman
of commercial vehicle dept. in Robert Bosch Group; now he serves as Vice Chairman of the Company and
Chairman of Bosch Automobile Diesel System Co., Ltd.
Mr. Wang Xiaodong, was born in November 1966, communist party members, a university graduate, MBA and senior
engineer. He previously served as Division Chief of Products Development Department of the Company, Deputy
GM of Bosch Automobile Diesel and supervisor of the Company. Currently serves as vice chairman and GM of
the Company.
Mr. Ou Jianbin, born in June 1966, communist party members, a senior college graduated and an accountant.
Previously served as Assistant Minister and Deputy Minister of Financial Department of Weifu Company,
Director and deputy GM of subsidiary Weifu Jinning, Deputy GM and GM of subsidiary Weifu Leader and
supervisor of the Company. Currently he serves as director and standing deputy GM as well as chief of the
financial of the Company.
Mr. Zhang Xiaogeng, born in March 1963, college degree, senior economist. He previously served as clerk of the
production system office at commission for restructuring of Wuxi City, deputy director of enterprise reform
department of Wuxi City, director of comprehensive institution department of Wuxi City, director of development
and planning department (policy and regulation division) of SASAC of Wuxi City and deputy GM of Wuxi
Industry Asset Management Co., Ltd; now he serves sa the deputy President of Industry Group, the first majority
shareholder of the Company and Director of the Company. currently serves as director of the Company, deputy
president of majority shareholder – Industry Group; and
Mr. Chen Yudong, was born in September 1961, an America citizenship and a Doctor. He previously served as
senior vice president of the gasoline system division of Robert Bosch Group, executive vice president of Bosch
(China) Investment Ltd. Now he serves as President of Bosch (China) Investment Ltd. and director of the
Company.
48
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Ms. Hua Wanrong, born in September 1964, communist party members, graduated from college, a senior
accountant. She previously she served as deputy director of administrative resources division of State-owned
Assets Supervision and Administration Bureau of Wuxi City, director of tax policy and regulations division and
director of state-owned assets division of Wuxi Municipal Bureau of Finance, director of property management
department and director of development and planning department of State-owned Assets Supervision and
Administration Commission of Wuxi City, director of investment banking department of major shareholder –
Industry Group. Currently she serves as GM of the investment banking dept. in Industry Group, majority
shareholder of the Company and Director of Taiji Industry as well as the Company
Ms. Yu Xiaoli, born in January 1963, a member of the Communist Party of China, Ph.D., a professor of Zhejiang
University, served as an independent director of the sixth and seventh board of directors of the Company and the
dean of the engineering branch of Zhejiang University City College. She is currently a professor at Zhejiang
University, the chairman of the Society of Automotive Engineers of Zhejiang, an executive director of Jinhua
Bozhong Automobile Technology Co., Ltd., the chairman of Zhejiang Bozhong Automobile Technology Co., Ltd.,
a director of Shaoxing Taige Electromechanical Tech. Co., an independent director of Zhejiang Asia-Pacific
Mechanical & Electronic Co., Ltd., an independent director of Hangzhou XZB Tech Co., Ltd., an independent
director of Zhejiang Fenglong Electric Co., Ltd., an independent director of Hangzhou EVTECH Co., Ltd, and an
independent director of the Company.
Mr. Lou Diming, born in July 1963, a member of the Communist Party of China, has a Ph.D., and is a professor. He
used to be the deputy director and the secretary of the party branch of the Department of Mechanical Engineering of
Shanghai Railway Institute, the deputy secretary of the party committee of the School of Mechanical Engineering of
Tongji University and the party secretary of the Department of Locomotive and Vehicle Engineering of Tongji
University, and the executive vice president of the Institute of Rail Transit, and the secretary of the second joint
committee of Tongji University, etc. He is currently a professor of Tongji University, a doctoral tutor, director of
the Automotive Engine Design Institute of the School of Automotive Studies, vice chairman of the Shanghai
Internal Combustion Engines Society, director of the China Society for Internal Combustion Engines, vice
chairman of the small and medium power diesel engine branch and the oils and clean fuels branch and the
post-processing technology branch, a member of the Expert Committee of the National Technical Committee 177
on Internal Combustion Engine of Standardization Administration of China, a member of the Expert Committee of
the China Internal Combustion Engine Industry Association, an independent director of Shanghai Diesel Engine
Co., Ltd., an independent director of Jiangsu Liance Electromechanical Technology Co., Ltd., a senior consultant
of Kunming Yunnei Power Co., Ltd., and an independent director of the Company.
Mr. Jin Zhangluo, born in August 1950, a member of the Communist Party of China, holds a college degree, and is
a certified public accountant and senior accountant. He used to be the financial controller of Jintan Diesel Engine
Factory in Jiangsu Province, deputy section chief, section chief and chief accountant of finance section of Wuxi
49
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Power Machine Factory, and department manager, deputy director and executive deputy director of Jiangsu
Gongzheng Certified Public Accountants. He currently serves as an independent director of Suzhou Taihu Electric
New Materials Co., Ltd., an independent director of Jiangsu Pengyao Environmental Protection Technology Co.,
Ltd., and an independent director of the Company.
Mr. Xu Xiaofang, born in March 1963, communist party members, graduate, a lawyer. He previously he served as
part-time lawyer in Beihai Economic Law Firm, staff in China Chamber of International Commerce Beihai
Branch, part-time lawyer of Guangdong Yuanjian Law Firm, and staff of legal affairs in CEIEC and lawyer of
Guangdong Bohe Law Firm. Now he serves as lawyer in Kunlun (Shenzhen) Law Firm, arbitrator of the
Shenzhen Arbitration Commission, independent director of Shenzhen Kaizhong Precision Technology Co., Ltd
and the Company.
Mr. Shi Xingyuan, was born in May 1962, communist party members, a postgraduate, Master of Commerce and
Industry, senior engineer. He previously he served as GM and Director of the Company; now he serves as Chairman of
the Supervisory Committee as well as the deputy Party Secretary and Chairman of the Labor Union of the Company
Mr. Ma Yuzhou, was born in September 1974, communist party members, owns Master’s degree and a engineer.
He previously served as Deputy GM of Weifu Tianli, Deputy GM and GM of the mechanical system division of
the Company; now he serves as Supervisor of the Company and director of the Organizational personnel
department of the Company.
Mr. Dai Lizhong, was born in July 1975, communist party members, owns Master’s degree and a engineer. He
previously served as Deputy GM and GM of the Weifu Diesel; now he serves as Supervisor of the Company and
standing deputy GM of the mechanical system division of the Company
Mr. Miao Yuming, born in April 1963, communist party members, a university background, MBA and senior engineer.
He previously served as director of sales department and assistant GM in the Company. Currently he serves as
deputy GM of the Company, deputy GM of Bosch Automobile Diesel;
Mr. Xu Yunfeng, born in November 1971, communist party members, graduate from University, a Master and
engineer. He previously served as assistant GM and GM Weifu Automobile Diesel. Currently serves as deputy
GM of the Company.
Mr. Zhou Weixing, born in January 1963, communist party members, graduate from University, a senior engineer.
He previously served as representative of security affairs and director of security office of the Company; now he
serves as secretary of the Board of the Company.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
50
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Received remuneration
Position in End date
Start dated of
Name Name of shareholder’s unit of office from shareholder’s unit
shareholder’s unit n office term term
(Y/N)
Rudolf Maier Bosch Automobile Diesel System Co., Ltd. Chairman Y
Chen Yudong Bosch (China) Investment Ltd. President 1 Jan. 2011 Y
Zhang
Wuxi Industry Development Group Co., Ltd. Vice president 1 Apr. 2008 Y
Xiaogeng
GM of the
investment
Hua Wanrong Wuxi Industry Development Group Co., Ltd. 1 Oct. 2018 Y
banking
department
Miao Yuming Bosch Automobile Diesel System Co., Ltd. Deputy GM 1 Mar. 2012 Y
Post-holding in other unit
√ Applicable □ Not applicable
Received
End remunera
Start dated of office date of
Name Name of other units Position in other unit n tion from
term office
term other unit
(Y/N)
Yu Xiaoli Zhejiang University Teacher and professor 1 August 1985
Yu Xiaoli Society of Automotive Engineers of Zhejiang Director-general 1 June 2015
Yu Xiaoli Zhejiang Bozhong Auto Technology Co., Ltd Chairman 1 April 2008
Yu Xiaoli Shaoxing Taige Electromechanical Tech. Co., Ltd Director 1 April 2004
Zhejiang Asia-Pacific Mechanical & Electronic Co.,
Yu Xiaoli Independent Director 1 April 2013
Ltd
Yu Xiaoli Hangzhou XZB Tech. Co., Ltd Independent Director 1 December 2013
Yu Xiaoli Zhejiang Fenglong Electric Co., Ltd Independent Director 1 April 2016
Yu Xiaoli Hangzhou EVTECH Co., Ltd Independent Director 1 June 2016
Professor, doctoral
Lou Diming Tongji University 15 April 2000
supervisor
Lou Diming Shanghai Diesel Engine Co., Ltd Independent Director 20 May 2015
Jiangsu Liance Electromechanical Technology Co.,
Lou Diming Independent Director 1 June 2017
Ltd
Lou Diming Kunming Yunnei Power Co., Ltd Senior consultant 1 August 2018
Jin Zhangluo Suzhou Taihu Electric Advanced Material Co., Ltd Independent Director 4 February 2016
Jiangsu Pengyao Environmental Protection Tech.
Jin Zhangluo Independent Director 1 February 2014
Co., Ltd
51
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Xu Xiaofang Kunlun (Shenzhen) Law Firm Lawyer 1 September 2004
Xu Xiaofang Shenzhen Kaizhong Precision Technology Co., Ltd Independent Director 1 June 2018
Explanation
on
The aforesaid are the independent directors of the Company
post-holding
in other unit
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedure: the remuneration and review committee of the Board shall make proposals
according to completion status of the major annual targets, the implementation of which is subject to submission
to and approval by the Board;
2. Determination reference: remuneration of directors, supervisors and senior management who receive
remuneration from the Company is determined based on the annual operating results assessment measures of
senior management and remuneration management rules of senior management as approved at the general
meetings. Salary for independent directors of the Company is determined by general meeting which is set at RMB
25,000 per quarter (after tax), and the traveling expense occurred by them arising from attending the Company’s
board meeting, general meetings and relevant activities will be reimbursed according to the actual conditions.
3. Actual payment: remuneration of directors, supervisors and senior management who receive remuneration from
the Company comprises of basic annual pay and performance related annual salary. The basic annual pay shall be
determined based on specific positions and paid monthly, while the performance related salary is determined and
paid based on satisfaction of the various performance indicators since it is directly linked with the economic
benefits of the Company. Remuneration of independent directors will be paid on a quarterly basis.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post-holding status obtained from the obtained from
Company (before related party of
taxes) the Company
Chen Xuejun Chairman M 51 Currently in office 95 N
Rudolf Maier Vice Chairman M 61 Currently in office Y
Wang Xiaodong Vice Chairman、GM M 52 Currently in office 86 N
Director, Deputy General Manager
Ou Jianbin M 52 Currently in office 72 N
and financing Charger
52
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Zhang Xiaogeng Director M 55 Currently in office Y
Chen Yudong Director M 57 Currently in office Y
Hua Wanrong Director F 54 Currently in office Y
Yu Xiaoli Independent Director F 55 Currently in office 6 N
Lou Diming Independent Director M 55 Currently in office 12 N
Jin Zhangluo Independent Director M 68 Currently in office 12 N
Xu Xiaofang Independent Director M 55 Currently in office 12 N
Chairman of the Supervisory
Shi Xingyuan M 56 Currently in office 72 N
Committee
Ma Yuzhou Supervisor M 44 Currently in office 19 N
Dai Lizhong Supervisor M 43 Currently in office 19 N
Miao Yuming Deputy GM M 55 Currently in office Y
Xu Yunfeng Deputy GM M 47 Currently in office 72 N
Zhou Weixing Secretary of the Board M 55 Currently in office 41 N
Xing Min Independent Director M 64 Office leaving 6 N
Zhang Zhenting Supervisor M 54 Office leaving 23 N
Liu Jinjun Supervisor M 43 Office leaving 19 N
Total -- -- -- -- 566 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) 2,509
Employee in-post of main Subsidiaries (people) 3,013
The total number of current employees (people) 5,522
The total number of current employees to receive pay (people) 5,522
Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) 0
Professional composition
Numbers of professional
Category of professional composition
composition (people)
Production personnel 3,386
Sales personnel 230
Technical personnel 1,236
Financial personnel 91
53
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Administrative personnel 579
Total 5,522
Education background
Category of education background Numbers (people)
Master degree and above 244
Undergraduate 1,317
Junior college 1,202
Other 2,759
Total 5,522
2. Remuneration Policy
In 2018, the company further improved the performance management and compensation management system,
differentiated the competency evaluation of “people” and the performance evaluation of “things”, established a
two-dimensional evaluation system of performance and capability, realized the interaction between organizational
performance and employee performance, and optimize the merit pay proportion by taking “one level is
responsible for one level” as the standard. Based on the principles of “remuneration market orientation and
landscape orientation balance” and combined with external research and internal post analysis, optimized salary
strategy and salary model, formed certain market competitiveness, stabilized the core employees of the company’s
core positions; gave full play to the role of incentive funds, clarified the objective of struggle, strengthened the
incentive effect, and promoted the spirit of “climbing higher than the challenge, challenging the high difficulties”
in the employees, which played an incentive role for the realization of the company’s annual goals; explored new
welfare mechanisms and piloted the establishment of flexible welfare platform for company employees. The
Company arranged social insurance for all of its employees, and continued to make available the complementary
annuity and medical and accident commercial insurances, effectively improve the level of employee motivation
and managing to activate employees’ enthusiasm and innovation, retain employees, attract high quality elites and
strengthen corporate cohesiveness.
3. Training programs
In 2018, the Company further increased training to improve the professionalism and expertise of employees.
Throughout the year, it held in aggregate 118 internal training with 167 in-house trainers. Besides, it conducted an
overall dynamic management against its training courses and trainers in order to achieve constant improvement of
internal training quality. A total of about 10,300 people have received relevant training from the Company, among
which, internal training accounted for 91%. The major training subjects included development plan for potential
elites, establishment and implementation of training plan for core elites. Together with the assessment on
effectiveness of training, the Company managed to strengthen training management on application and sharing
plans. In addition, the company also tried to design and implemented the “SPACE” model of talent professional
skill development and training, solidified the talent development training mode, strengthened the landing of
54
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
application, and embodied the training concept of “results oriented, training and fighting combined,
interesting and effective” through the course study, rotation practice, application action, self
challenge, evaluation improvement.
4. Labor outsourcing
□ Applicable √ Not applicable
55
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section IX. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company earnestly implemented the Basic Internal Control Standards for
Enterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, Listing
Rules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on Main Board,
continued to improve and enhance legal person governance structure and internal control system, thus to
standardize its operation. The actual status of corporate governance in accordance with the requirements of China
Securities Regulatory Commission regulatory documents related to listing Corporation.
The company has established a series of document systems for standardized management including the Rules of
Procedure of three committees, Working Rules, internal control system, Evaluation Management System of
Internal Control, Information Disclosure Management Approach, Financial Decision-making System of
Significant Investment, Related Party Transaction System and Inside Information and Insider Management
System.
According to the Company Law, Articles of Association and relevant laws and regulations, the company
established a relatively complete organizational control architecture system. The company’s board of directors
executes the resolution of general meeting of stockholders, takes charge of the company’s great decisions, and
take responsible for the general meeting of stockholders; the company sets up the general manager according to
law to preside over the company’s daily production and operation and management, organize and implement the
resolutions of the board of directors, and take responsible for the board of directors; the company’s board of
supervisors is the company’s supervisory body, takes responsible for behaviors of the directors and senior
management and the supervise the company’s financial affairs. The board of directors has four special committees
including the strategy committee, remuneration and appraisal committee, audit committee, and nominations
committee. The company’s general meeting of stockholders, board of directors, board of supervisors, and
management layer have clear rights and obligations, perform their own duties, effectively check and balance,
scientifically make decisions, coordinate operations, and lay a solid foundation for the company’s sustainable,
stable and healthy development.
The company’s independent directors perform their duties and faithfully and conscientiously fulfill their
obligations in strict accordance with relevant regulations of Articles of Association and the Independent Director
System, and actively attend the board meetings and shareholders' meetings, understand and obtain relevant
information before meetings; carefully consider each motion, and actively participate in the discussions and make
recommendations. Seriously make independent opinions, and effectively protect the interests of the company and
shareholders, especially the minority shareholders. Independent directors have no objections on relevant matters
of the company.
56
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
The company further implements the Basic Norms of Enterprise Internal Control and its guidelines, constructs the
internal control system in the company headquarters and major subsidiaries, enhance the company's management
and control level, optimize the work flow, improve the internal control system, identify and control the
operational risks. Please see the detailed contents of 2018 Annual Internal Control Evaluation Report on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□ Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
1. Business: the company has a complete independent research and development, procurement, production and
sales systems, the main business does not have horizontal competition with the controlling shareholders. The
business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor, personnel and
salary management; there is no mixed operation and management with the controlling shareholders. The
company’s general manager, vice general manager, financial administrator, secretary of the board, and senior
executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete, the property relations with the controlling
shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling
shareholders, the duty and authority of the company’s stockholders' meeting, board of directors, board of
supervisors and management level are clearly defined, the internal management system can operate
independently.
5. Finance: the company has set up an independent financial department, established the independent financial
accounting system and financial management system, opened the independent bank account, and paid taxes
separately according to law.
III. Horizontal competition
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor Date of
Session of meeting Type Date Index of disclosure
participation disclosure
Annual General (Notice No.: 2018-021) published on
AGM 42.04% 27 June 2018 28 June 2018
Meeting of 2017 Juchao Website(www.cninfo.com.cn)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and general meeting
Absent the
Times of Board Times of Times of Times of Times of
Times of Board Meeting
Independent meeting supposed Board attending Board Board meeting attending
Board meeting for the second
Director to attend in the meeting meeting by entrusted shareholding
Absence time in a row
report period Presence communication presence meeting
(Y/N)
Yu Xiaoli 3 1 2 0 0 N 1
Lou Diming 7 2 4 1 0 N 1
Jin Zhangluo 7 3 4 0 0 N 1
Xu Xiaofang 7 3 4 0 0 N 1
Explanation of absent the Board Meeting for the second time in a row
Not applicable
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□ Yes √ No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Explanation on advice that accepted/not accepted from independent directors
During the reporting period, the company’s independent directors have paid close attention to the company’s
operations, independently performed their duties, made special opinions on the company’s system improvement
and daily operating decisions in strict accordance with relevant laws and regulations and the provisions of Articles
of Association, made independent and just opinions on the matters that need the independent directors’ opinions
during the reporting period, and played the due role in improving the corporate governance mechanism,
maintaining the legitimate rights and interests of the company and all shareholders.
VI. Duty performance of the special committees under the board during the reporting period
1. Two meetings of Audit committee of the Board, deliberated and approved followed: Financial Result Report of
2017, Annual Report of 2017 and its Summary, Conclusion Report of auditing for year of 2017, Engagement of
audit institute for financial report of 2018, Engagement of audit institute for internal control of the Company of
2018 and Semi-Annual Report of 2018 and its Summary etc.;
2. One meeting of remuneration and appraisal committee of the Board, deliberate and approved the Remuneration
evaluation and payment for senior executive of 2017;
3. One meeting of strategy committee of the Board, deliberate and approved the Operation target for year of
2018.
4. Two meetings of nomination committee of the Company, deliberate the director nominee of 9th BOD without
objection; and examined the qualification of senior managers and the related situation without objection.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law,
Articles of Association, and the Annual Operating Results Assessment Measures of Senior Management and
Remuneration Management Rules of Senior Management as approved at the general meetings. Assessment of
operating results of senior management comprises of annual operating results assessment and term-of-service
operating results assessment. Assessment on results and procedure was combined, and assessment results were
linked to incentives and punishment. With respect to annual operating results review, the remuneration and review
committee of the Board made comprehensive assessment on satisfaction of the annual operating targets and
determined the annual remuneration, incentives or punishment for senior management based on their review
results (which was implemented according to remuneration management rules of senior management), based on
the major annual operating targets set by the Board under required procedures and methods through establishment
of scientific performance indicators and assessment system and combination of scoring in terms of quantity and
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
review comments. During the reporting period, the Company made appropriate assessment on its senior
management under the performance indicator and assessment system, the results of which had been reflected in
the annual performance related remuneration.
Currently, the Company has not exercised any share option scheme.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
23 April 2019
evaluation report
Disclosure index of full internal control Self-evaluation report of internal control for 2018, more details found in Juchao
evaluation report website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
See details in (II) Basis for evaluation of See details in (II) Basis for evaluation of
internal controls and defect identification internal controls and defect identification
standards of internal controls of III standards of internal controls of III
Qualitative criteria Evaluation of Internal Controls in 2018 Evaluation of Internal Controls in 2018
Annual Internal Control Self-Evaluation Annual Internal Control Self-Evaluation
Report disclosed on www.cninfo.com.cn on Report disclosed on www.cninfo.com.cn
April 23, 2019. on April 23, 2019
See details in (II) Basis for evaluation of See details in (II) Basis for evaluation of
internal controls and defect identification internal controls and defect identification
standards of internal controls of III standards of internal controls of III
Quantitative standard Evaluation of Internal Controls in Evaluation of Internal Controls in 2018
2018Annual Internal Control Annual Internal Control Self-Evaluation
Self-Evaluation Report disclosed on Report disclosed on www.cninfo.com.cn
www.cninfo.com.cn on April 23, 2019. on April 23, 2019
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Amount of significant defects in financial
0
reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Audit institute considers that: according to relevant regulations and Basic Rules of Internal Control for Enterprises, Weifu
High-Technology Co., Ltd. in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2018
Disclosure details of audit report of internal
Disclosed
control
Disclosure date of audit report of internal
23 April 2019
control (full-text)
Index of audit report of internal control Audit report of internal control for year of 2018, more details found in Juchao
(full-text) website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
Opinion type of auditing report of IC Standard unqualified
Whether the non-financial report had major
No
defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section X. Corporate Bond
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 年年度报告全文
Section XI. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 19 April 2019
Name of audit institute Jiangsu Gongzheng Tianye Certified Public Accountants (Special General Partnership)
Document number of audit report SGW[2019]No.:A525
Name of CPA Bo Lingjing, Meng Yin
Auditor’s Report
SGW[2019]No.:A525
To the Shareholders of Weifu High-Technology Group Co., Ltd.:
I. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as
WFHT), including the consolidated and parent Company’s balance sheet of 31 December 2018 and profit statement, and cash flow
statement, and statement on changes of shareholders’ equity for the year ended, and notes to the financial statements for the year
ended.
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises Accounting Standards and
Enterprises Accounting System, and they fairly present the financial status of the Company and of its parent company as of 31
December 2018 and its operation results and cash flows for the year ended.
II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities
under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of the
auditor’s report. We are independent of the Company in accordance with the Certified Public Accountants of China’s Code of Ethics
for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The key audit matter we identified is as follows:
(i) Revenue Recognition
1.Matter description
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
As carried in the 24. Revenue in Note V and 35. Operation revenue and cost in Note VII, WFHT achieved an operation revenue of
8721.6747 million Yuan for the year of 2018.
As one of the biggest source of profits for WFHT, operation revenue has a significant effect on the general financial statement, in
which there are certain of inherent risks existed for the reason that the management manipulate the timing of recognition so as to
achieve specific objectives or anticipations. Therefore, we will take the Revenue Recognition Principle as the key auditing matter.
2.The solution to the matter in auditing
(1)The Company has tested the design and execution of key internal control related to revenue recycling so as to confirm the validity
of internal control; (2) The Company should make sure whether the recognition condition and method of major operating revenue are
compliance with the enterprise accounting principle and whether the front phase consistent with the rear phase; it also should pay an
attention to that whether the cyclical and occasional revenue is compliance with the decided revenue recognition principle and
methods; (3) Combining with status and policies of the industry where WFHT is located, and make a judgment on the rationality of
fluctuation; (4) The Company should carry out the procedure of account receivable and income letter of confirmation, and make a
judgment on the rationality of the timing of revenue recognition; (5) Combining with the procedure of letter of confirmation, the
Company should make a random inspection on sales contracts or orders, delivery lists, logistics bills, customs declaration, sales
invoices and other documents related to revenue to verify the authenticity of revenue; and (6) Referring to the recorded revenue
before and after the Balance Sheet Date, the Company should select some samples and check out the supportive documents such as
delivery lists, customs declaration and receipt forms to make a judgment on whether the income has been recorded at the appropriate
accounting period.
(ii) Impairment of available-for-sale financial assets
1. Description of the matter
As stated in Note V, 10 “Financial Instruments” and Note VII, 7 “Available for Sale Financial Assets” of the financial statements, as
of December 31, 2018, the book balance of available-for-sale financial assets in the consolidated statements of WFHT was
460,603,200 Yuan, the balance of impairment provision was204,628,034.04Yuan, of which the impairment provision calculated in
the current period was145,994,927.09 Yuan. For available-for-sale financial assets, the management of WFHT (hereinafter referred
to as the management) considered whether these financial assets had objective evidence showing signs of impairment, the objective
evidence of the existence of signs of impairment included the fair value of available-for-sale equity instruments having a serious or
non-temporary decline. As the amount of available-for-sale financial assets was significant, the impairment assessment required
significant judgment from the management, and the impairment assessment of such assets was recognized as a key audit matter.
2. Response to the matter in the audit
(1) Assess and test the validity of the design and operation of the internal control of the process related to the impairment of
available-for-sale financial assets; (2) Assess the management’s judgment on whether there is any indication of impairment, the
assessment is based on the fair value of the financial instrument and the financial condition of the invested enterprise; (3) Assess the
rationality of the management’s judgment that the financial instrument is serious or non-temporary less than its cost standard; (4) For
impairment of available-for-sale financial assets, test the amount of impairment provision accrued by the management. We assessed
the basis and parameters (such as market value, financial information of the invested enterprise, etc.) used to calculate the impairment
provision during the test.
IV. Other information
The management of WFHT is responsible for other information which includes the information covered in the Company’s 2018
annual report excluding the financial statement and our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not issue any form of
assurance opinions.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Considering our audit on financial statements, we are liable to read other information, during which, we shall consider whether other
information differs materially from the financial statements or that we understand during our audit, or whether there is any material
misstatement.
Based on the work we have carried out, if we determine that there is a material misstatement of other information, we should report
that fact and in this regard we have nothing to report.
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting Standards for
Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the internal control necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing matters related to going concern (if applicable) and using the going concern assumption unless the management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with the CAS will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by the CAS to draw users’
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
attention in audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify audit
opinion. Our conclusions are based on the information obtained up to the date of audit report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express audit opinion on the financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be considered to affect our
independence, as well as the relevant precautions (if applicable)
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in the
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in the auditor’s report because of the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Jiangsu Gongzheng Tianye CPA Chinese CPA: Bo Lingjing
(Special Ordinary Partnership) (engagement partner)
Wuxi, China Chinese CPA: Meng Yin
19 April 2019
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co., Ltd.
2018-12-31
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 2,616,321,740.73 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
Note receivable and account receivable 3,067,900,870.59 3,459,834,765.73
Including: Note receivable 1,148,107,603.68 1,464,256,934.83
Account receivable 1,919,793,266.91 1,995,577,830.90
Account paid in advance 94,651,431.31 97,576,197.88
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other receivables 84,582,246.16 7,496,602.58
Including: Interest receivable 1,842,437.50 2,281,979.17
Dividend receivable
Buying back the sale of financial assets
Inventory 1,438,528,714.59 1,478,939,040.70
Assets held for sale
Non-current asset due within one year
Other current assets 4,632,137,600.26 3,887,997,290.53
Total current assets 11,934,122,603.64 12,050,553,310.25
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 255,975,176.91 588,142,869.00
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,976,773,946.74 4,140,064,825.58
Investment real estate 21,906,134.52 23,544,830.78
Fixed assets 2,707,374,678.61 2,584,872,628.54
Construction in progress 166,414,542.18 100,345,461.28
Productive biological assets
Oil and gas assets
Intangible assets 324,892,822.75 340,632,143.36
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 16,637,652.31 2,969,770.81
Deferred income tax assets 234,697,139.58 203,007,622.23
Other non-current assets 251,462,676.27 195,088,675.74
Total non-current assets 8,957,918,856.66 8,180,452,914.11
Total assets 20,892,041,460.30 20,231,006,224.36
Current liabilities:
Short-term borrowings 298,928,213.94 243,000,000.00
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 490,329.13
Note payable and account payable 3,065,704,368.40 3,518,932,964.93
Accounts received in advance 41,329,857.80 42,820,236.07
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 312,113,178.24 327,778,677.29
Taxes payable 74,271,613.92 93,869,690.36
Other accounts payable 64,448,723.52 63,339,869.33
Including: Interest payable 517,469.08 401,928.43
Dividend payable
Reinsurance payable
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Insurance contract reserve
Security trading of agency
Security sales of agency
Liability held for sale
Non-current liabilities due within one year 15,000,000.00 10,000,000.00
Other current liabilities
Total current liabilities 3,872,286,284.95 4,299,741,437.98
Non-current liabilities:
Long-term loans 30,000,000.00 45,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable 35,422,354.11 35,761,445.11
Long-term wages payable 74,679,175.36 30,448,132.88
Accrual liabilities
Deferred income 425,769,854.13 451,281,721.77
Deferred income tax liabilities 1,912,744.40 17,406,622.39
Other non-current liabilities
Total non-current liabilities 567,784,128.00 579,897,922.15
Total liabilities 4,440,070,412.95 4,879,639,360.13
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 3,416,022,795.14 3,417,841,402.89
Less: Inventory shares
Other comprehensive income -19,809,442.95 87,169,455.01
Reasonable reserve 1,618,490.50 2,606.93
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 10,996,945,870.13 9,811,609,138.92
Total owners’ equity attributable to parent company 15,913,828,778.82 14,835,673,669.75
Minority interests 538,142,268.53 515,693,194.48
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Total owners’ equity 16,451,971,047.35 15,351,366,864.23
Total liabilities and owner’s equity 20,892,041,460.30 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 1,922,408,227.00 2,460,413,190.84
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Note receivable and account receivable 1,006,511,198.29 1,496,222,212.94
Including: Note receivable 264,264,207.30 449,209,323.02
Account receivable 742,246,990.99 1,047,012,889.92
Account paid in advance 59,028,927.25 52,269,971.38
Other receivables 196,849,092.13 50,272,280.93
Including: Interest receivable 188,682.78 97,627.77
Dividend receivable
Inventory 492,054,274.67 425,577,163.53
Assets held for sale
Non-current asset due within one year
Other current assets 4,576,688,553.49 3,876,370,675.52
Total current assets 8,253,540,272.83 8,361,125,495.14
Non-current assets:
Available-for-sale financial assets 180,035,176.91 512,202,869.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 5,739,110,426.55 4,962,522,689.49
Investment real estate
Fixed assets 1,534,109,106.80 1,567,315,925.73
Construction in progress 78,673,300.59 29,152,398.74
Productive biological assets
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Oil and gas assets
Intangible assets 188,101,655.94 196,726,670.75
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 140,286,756.70 114,706,976.54
Other non-current assets 184,208,090.40 80,866,308.04
Total non-current assets 8,044,524,513.89 7,463,493,838.29
Total assets 16,298,064,786.72 15,824,619,333.43
Current liabilities:
Short-term borrowings 112,000,000.00 78,000,000.00
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Note payable and account payable 1,154,238,521.88 1,541,969,832.85
Accounts received in advance 6,639,554.63 12,242,442.51
Wage payable 200,205,508.25 216,598,203.73
Taxes payable 39,193,425.15 71,370,793.35
Other accounts payable 12,142,596.68 10,076,446.33
Including: Interest payable 149,966.66 93,777.78
Dividend payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,524,419,606.59 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 63,962,762.93 16,665,236.81
Accrual liabilities
Deferred income 381,609,056.40 407,070,636.08
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Deferred income tax liabilities 15,382,844.99
Other non-current liabilities
Total non-current liabilities 445,571,819.33 439,118,717.88
Total liabilities 1,969,991,425.92 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 -19,809,442.95 87,169,455.01
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 9,340,610,451.36 8,360,801,089.38
Total owners’ equity 14,328,073,360.80 13,455,242,896.78
Total liabilities and owner’s equity 16,298,064,786.72 15,824,619,333.43
3. Consolidated Profit Statement
In RMB
Item Current period Last Period
I. Total operating income 8,721,674,671.18 9,017,280,159.80
Including: Operating income 8,721,674,671.18 9,017,280,159.80
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 8,216,834,165.41 8,086,342,833.98
Including: Operating cost 6,691,856,839.97 6,761,729,398.36
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
72
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Reinsurance expense
Operating tax and extras 65,388,329.92 72,413,140.48
Sales expenses 237,839,472.28 194,854,780.37
Administration expenses 585,005,385.75 539,493,552.86
R&D expenses 403,263,972.20 391,315,234.75
Financial expenses -17,393,580.55 7,316,996.79
Including: Interest expenses 17,562,164.63 10,044,328.07
Interest income 34,156,380.22 18,726,974.19
Losses of devaluation of asset 250,873,745.84 119,219,730.37
Add: Other income 48,404,480.99 40,394,724.11
Investment income (Loss is listed with “-”) 1,955,668,055.33 1,853,638,285.20
Including: Investment income on affiliated company
1,623,761,059.52 1,604,027,207.30
and joint venture
Income from change of fair value (Loss is listed with
-490,329.13
“-”)
Exchange income (Loss is listed with “-”)
Income from assets disposal (Loss is listed with “-”) 102,472,995.47 -748,927.63
III. Operating profit (Loss is listed with “-”) 2,610,895,708.43 2,824,221,407.50
Add: Non-operating revenue 1,264,830.90 11,968,167.87
Less: Non-operating expenditure 9,977,159.55 5,773,593.62
IV. Total Profit (Loss is listed with “-”) 2,602,183,379.78 2,830,415,981.75
Less: Income tax expense 135,888,676.31 183,206,057.17
V. Net profit (Net loss is listed with “-”) 2,466,294,703.47 2,647,209,924.58
(i) net profit from continuous operation (Net loss is listed
2,466,294,703.47 2,647,209,924.58
with “-”)
(ii) net profit from discontinued operation (Net loss is listed
with “-”)
Net profit attributable to owner’s of parent company 2,396,077,415.21 2,571,339,490.04
Minority shareholders’ gains and losses 70,217,288.26 75,870,434.54
VI. Net amount of other comprehensive income after-tax -106,978,897.96 -57,553,372.50
Net after-tax of other comprehensive income attributable to
-106,978,897.96 -57,553,372.50
owners of parent company
(i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Re-measurement of the change of defined benefit plan
2.Other comprehensive income unable transfer to gain/loss
73
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
under equity method
(ii) Other comprehensive income items which will be
-106,978,897.96 -57,553,372.50
reclassified subsequently to profit or loss
1.Other comprehensive income able to transfer to gain/loss
under equity method
2.Gains or losses arising from changes in fair value of
-106,978,897.96 -57,553,372.50
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 amount of other comprehensive income after-tax
attributable to minority shareholders
VII. Total comprehensive income 2,359,315,805.51 2,589,656,552.08
Total comprehensive income attributable to owners of parent
2,289,098,517.25 2,513,786,117.54
Company
Total comprehensive income attributable to minority
70,217,288.26 75,870,434.54
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 2.37 2.55
(ii) Diluted earnings per share 2.37 2.55
As for the enterprise combined under the same control, net profit of Yuan achieved by the merged party before combination while Yuan achieved last period
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 3,998,191,191.20 3,646,015,253.48
Less: Operating cost 2,878,837,450.12 2,772,717,901.96
Operating tax and extras 35,149,305.22 32,231,401.32
Sales expenses 37,478,558.29 41,447,839.21
Administration expenses 376,379,869.65 264,781,355.23
74
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
R&D expenses 177,593,532.59 119,083,205.53
Financial expenses -21,456,061.70 612,009.78
Including: Interest expenses 7,628,727.78 10,044,328.07
Interest income 28,648,955.90 18,726,974.19
Losses of devaluation of asset 175,101,684.40 32,483,156.75
Add: Other income 29,495,580.27 29,394,763.19
Investment income (Loss is listed with “-”) 1,936,311,115.66 2,684,760,048.35
Including: Investment income on affiliated company
1,529,792,676.71 1,470,504,861.61
and joint venture
Income from change of fair value (Loss is listed with
“-”)
Income from assets disposal (Loss is listed with “-”) 378,212.58 -712,637.95
II. Operating profit (Loss is listed with “-”) 2,305,291,761.14 3,096,100,557.29
Add: Non-operating revenue 207,671.23 3,830,135.74
Less: Non-operating expenditure 7,273,534.03 2,394,121.52
III. Total Profit (Total loss is listed with “-”) 2,298,225,898.34 3,097,536,571.51
Less: Income tax expense 106,753,611.42 96,268,627.83
IV. Net profit(Net loss is listed with “-”) 2,190,550,045.98 3,001,267,943.68
(i) net profit from continuous operation (Net loss is listed
2,190,550,045.98 3,001,267,943.68
with “-”)
(ii) net profit from discontinued operation (Net loss is listed
with “-”)
V. Net amount of other comprehensive income after-tax -106,978,897.96 -57,553,372.50
(i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Re-measurement of the change of defined benefit plan
2.Other comprehensive income unable transfer to gain/loss
under equity method
(ii) Other comprehensive income items which will be
-106,978,897.96 -57,553,372.50
reclassified subsequently to profit or loss
1.Other comprehensive income able to transfer to gain/loss
under equity method
2.Gains or losses arising from changes in fair value of
-106,978,897.96 -57,553,372.50
available-for-sale financial assets
3.Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets
75
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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 2,083,571,148.02 2,943,714,571.18
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
7,999,323,110.21 7,754,845,248.56
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
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 74,874,331.14 43,620,789.57
Other cash received concerning operating activities 118,177,755.39 65,978,678.90
Subtotal of cash inflow arising from operating activities 8,192,375,196.74 7,864,444,717.03
Cash paid for purchasing commodities and receiving labor service 4,916,153,332.79 4,582,582,669.13
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
76
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Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,258,270,424.72 1,160,114,421.44
Taxes paid 584,432,693.90 616,431,389.37
Other cash paid concerning operating activities 559,137,218.70 547,618,336.02
Subtotal of cash outflow arising from operating activities 7,317,993,670.11 6,906,746,815.96
Net cash flows arising from operating activities 874,381,526.63 957,697,901.07
II. Cash flows arising from investing activities:
Cash received from recovering investment 11,441,378,669.57 9,448,612,477.03
Cash received from investment income 1,161,469,760.54 1,098,610,121.87
Net cash received from disposal of fixed, intangible and other
79,188,658.88 57,287,480.01
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 4,559,984.34
Subtotal of cash inflow from investing activities 12,682,037,088.99 10,609,070,063.25
Cash paid for purchasing fixed, intangible and other long-term
642,108,805.53 469,961,718.71
assets
Cash paid for investment 12,245,264,000.00 11,389,400,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 1,090,775.32
Subtotal of cash outflow from investing activities 12,888,463,580.85 11,859,361,718.71
Net cash flows arising from investing activities -206,426,491.86 -1,250,291,655.46
III. Cash flows arising from financing activities:
Cash received from absorbing investment 800,000.00 9,520,000.00
Including: Cash received from absorbing minority shareholders’
800,000.00 9,520,000.00
investment by subsidiaries
Cash received from loans 464,928,213.94 245,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5,470,000.00
Subtotal of cash inflow from financing activities 471,198,213.94 254,520,000.00
Cash paid for settling debts 419,000,000.00 157,000,000.00
Cash paid for dividend and profit distributing or interest paying 1,251,137,878.98 640,733,312.09
Including: Dividend and profit of minority shareholder paid by
22,543,737.00 25,491,872.94
subsidiaries
77
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Other cash paid concerning financing activities 15,909,091.00 1,388,802.28
Subtotal of cash outflow from financing activities 1,686,046,969.98 799,122,114.37
Net cash flows arising from financing activities -1,214,848,756.04 -544,602,114.37
IV. Influence on cash and cash equivalents due to fluctuation in
3,128,506.54 -9,588,455.13
exchange rate
V. Net increase of cash and cash equivalents -543,765,214.73 -846,784,323.89
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 2,404,674,139.49 2,948,439,354.22
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
4,733,753,801.62 3,416,825,598.91
services
Write-back of tax received
Other cash received concerning operating activities 41,027,003.47 517,431,460.97
Subtotal of cash inflow arising from operating activities 4,774,780,805.09 3,934,257,059.88
Cash paid for purchasing commodities and receiving labor service 2,886,319,248.71 2,151,676,404.43
Cash paid to/for staff and workers 680,624,287.14 536,335,082.41
Taxes paid 394,154,946.50 286,855,287.15
Other cash paid concerning operating activities 190,629,457.19 122,961,088.23
Subtotal of cash outflow arising from operating activities 4,151,727,939.54 3,097,827,862.22
Net cash flows arising from operating activities 623,052,865.55 836,429,197.66
II. Cash flows arising from investing activities:
Cash received from recovering investment 10,801,378,669.57 8,859,701,492.00
Cash received from investment income 1,209,267,861.85 1,994,517,515.08
Net cash received from disposal of fixed, intangible and other
39,600,092.79 52,607,353.75
long-term assets
Net cash received from disposal of subsidiaries and other units 2,410,502.57
Other cash received concerning investing activities 208,164,304.89 203,883,811.97
Subtotal of cash inflow from investing activities 12,258,410,929.10 11,113,120,675.37
Cash paid for purchasing fixed, intangible and other long-term
374,303,391.72 171,633,121.17
assets
Cash paid for investment 11,561,834,000.00 10,801,729,258.63
78
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 298,197,471.87 47,000,000.00
Subtotal of cash outflow from investing activities 12,234,334,863.59 11,020,362,379.80
Net cash flows arising from investing activities 24,076,065.51 92,758,295.57
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 212,000,000.00 80,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 212,000,000.00 80,000,000.00
Cash paid for settling debts 178,000,000.00 82,000,000.00
Cash paid for dividend and profit distributing or interest paying 1,218,313,222.90 607,280,892.11
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 1,396,313,222.90 689,280,892.11
Net cash flows arising from financing activities -1,184,313,222.90 -609,280,892.11
IV. Influence on cash and cash equivalents due to fluctuation in
2,563,681.07 -8,586,691.91
exchange rate
V. Net increase of cash and cash equivalents -534,620,610.77 311,319,909.21
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 1,920,076,358.43 2,454,696,969.20
79
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Current period
Owners’ equity attributable to parent company
Other equity
Item Provisio
instrument Less: Other Minority Total owners’
Share Reasonable n of
Capital reserve Inventor comprehensiv Surplus reserve Retained profit interests equity
Prefer Perpetual
capital reserve general
red capital Other y shares e income
risk
stock securities
1,008,
I. Balance at the end
950,57 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
of the last year
0.00
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
1,008,
II. Balance at the
950,57 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
beginning of this year
0.00
III. Increase/ Decrease -1,818,607.75 -106,978,897. 1,615,883.5 1,185,336,731.21 22,449,074.05 1,100,604,183.12
80
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
in this year (Decrease 96 7
is listed with “-”)
(i) Total -106,978,897.
2,396,077,415.21 70,217,288.26 2,359,315,805.51
comprehensive income 96
(ii) Owners’ devoted
-1,818,607.75 7,024.21 -12,958,416.46 -14,770,000.00
and decreased capital
1.Common shares
800,000.00 800,000.00
invested by owners
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity
with share-based
payment
4．Other -1,818,607.75 7,024.21 -13,758,416.46 -15,570,000.00
(III) Profit distribution -1,210,740,684.00 -35,204,600.00 -1,245,945,284.00
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for
owners (or -1,210,740,684.00 -35,204,600.00 -1,245,945,284.00
shareholders)
4．Other
(IV) Carrying forward
internal owners’ equity
81
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4. Change amount of
defined benefit plans
that carry forward
retained earnings
5．Other
1,608,859.3
(v) Reasonable reserve 394,802.25 2,003,661.61
6
1. Withdrawal in the 20,133,398.
2,758,918.74 22,892,317.38
report period 64
2. Usage in the report 18,524,539.
2,364,116.49 20,888,655.77
period 28
(vi)Other
1,008,
IV. Balance at the end -19,809,442.9 1,618,490.5
950,57 3,416,022,795.14 510,100,496.00 10,996,945,870.13 538,142,268.53 16,451,971,047.35
of the report period 5 0
0.00
82
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Last period
In RMB
Last period
Owners’ equity attributable to parent company
Other equity instrument
Item Provisio
Perpetua Less: Other Minority Total owners’
Share Prefer Reasonabl n of
l capital Capital reserve Inventor comprehensiv Surplus reserve Retained profit interests equity
capital red Other e reserve general
securitie y shares e income
stock risk
s
1,008,
I. Balance at the end 3,417,841,402.8 144,722,827.5
950,57 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 9 1
0.00
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
1,008,
II. Balance at the 3,417,841,402.8 144,722,827.5
950,57 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
beginning of this year 9 1
0.00
III. Increase/ Decrease
-57,553,372.5
in this year (Decrease -86,398.26 1,965,969,148.04 44,607,096.43 1,952,936,473.71
0
is listed with “-”)
(i) Total -57,553,372.5 2,571,339,490.04 75,870,434.54 2,589,656,552.08
83
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
comprehensive income 0
(ii) Owners’ devoted
8,480,761.72 8,480,761.72
and decreased capital
1.Common shares
9,520,000.00 9,520,000.00
invested by owners
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 distribution -605,370,342.00 -39,650,290.00 -645,020,632.00
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk 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)
84
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4. Change amount of
defined benefit plans
that carry forward
retained earnings
5．Other
(v)Reasonable reserve -86,398.26 -93,809.83 -180,208.09
1. Withdrawal in the 17,947,66
2,379,810.36 20,327,472.03
report period 1.67
2. Usage in the report 18,034,05
2,473,620.19 20,507,680.12
period 9.93
(vi)Other
1,008,
IV. Balance at the end 3,417,841,402.8
950,57 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
of the report period 9
0.00
85
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Current period
Other equity instrument
Less: Other
Item Reasonabl Total owners’
Perpetual
Share capital Preferred Capital reserve Inventor comprehensiv Surplus reserve Retained profit
capital Other e reserve equity
stock y shares e income
securities
I. Balance at the end of
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
the last year
Add: Changes of
accounting policy
Error correction of the last
period
Other
II. Balance at the
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
beginning of this year
III. Increase/ Decrease in
-106,978,897.
this year (Decrease is 979,809,361.98 872,830,464.02
96
listed with “-”)
(i) Total comprehensive -106,978,897.
2,190,550,045.98 2,083,571,148.02
income 96
(ii) Owners’ devoted and
decreased capital
1.Common shares
86
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
invested by owners
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4．Other
-1,210,740,684.0
(III) Profit distribution -1,210,740,684.00
0
1. Withdrawal of surplus
reserves
2. Distribution for owners -1,210,740,684.0
-1,210,740,684.00
(or shareholders) 0
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. Change amount of
defined benefit plans that
87
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
carry forward retained
earnings
5．Other
(v)Reasonable reserve
1. Withdrawal in the 7,503,921.
7,503,921.32
report period 32
2. Usage in the report 7,503,921.
7,503,921.32
period 32
(vi)Other
IV. Balance at the end of -19,809,442.9
1,008,950,570.00 3,488,221,286.39 510,100,496.00 9,340,610,451.36 14,328,073,360.80
the report period 5
Last period
In RMB
Last period
Other equity instrument
Less: Other
Item Reasonable Total owners’
Perpetual
Share capital Preferred Capital reserve Inventor comprehensive Surplus reserve Retained profit
capital Other reserve equity
stock y shares income
securities
I. Balance at the end of
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
the last year
Add: Changes of
accounting policy
Error correction of the
last period
Other
II. Balance at the 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
88
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
beginning of this year
III. Increase/ Decrease in
this year (Decrease is 39,812,500.00 -57,553,372.50 2,835,157,009.59 2,817,416,137.09
listed with “-”)
(i) Total comprehensive
-57,553,372.50 3,001,267,943.68 2,943,714,571.18
income
(ii) Owners’ devoted
and decreased capital
1.Common shares
invested by owners
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4．Other
(III) Profit distribution -605,370,342.00 -605,370,342.00
1. Withdrawal of surplus
reserves
2. Distribution for
-605,370,342.00 -605,370,342.00
owners (or shareholders)
3．Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
89
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conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4. Change amount of
defined benefit plans that
carry forward retained
earnings
5．Other
(v)Reasonable reserve
1. Withdrawal in the 4,785,959.
4,785,959.00
report period 00
2. Usage in the report 4,785,959.
4,785,959.00
period 00
(vi)Other 39,812,500.00 439,259,407.91 479,071,907.91
IV. Balance at the end of
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
the report period
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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.
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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 Co., Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company), face value was
ONE Yuan per share, added registered capital of RMB 112,858,000, and the registered capital after change was
RMB 680,133,995. Wuxi Industry Group is the first majority shareholder of the Company, and Robert Bosch
Company 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 (share capital) becomes 1,008,950,570 Yuan after the change.
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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(Automobile Components) 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 equipment, manufacturing of auto
electronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaust
after-treatment system; sales of the general machinery, hardware & electrical equipment, chemical products & raw
materials (excluding hazardous chemicals), automobile components 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, automobile components,
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 19 April 2019.
5. Scope of consolidate financial statement
Shareholding ratio (%) Registered
Proportion Statement
Short name of capital (in 10 Business
Name of subsidiary of votes consolidat
subsidiary Directly Indirectly thousand scope
(%) e (Y/N)
Yuan)
Nanjing Weifu Jinning Co., Ltd. Weifu Jinning 80.00 -- 80.00 34,628.70 Internal-com Y
bustion
engine
accessories
Wuxi Weifu Leader Catalytic Weifu Leader 94.81 -- 94.81 50,259.63 Purifier and Y
Converter Co., Ltd. muffler
Weifu Mashan Pump Glib Co., Ltd. Weifu Mashan 100.00 -- 100.00 16,500 Internal-com Y
bustion
engine
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accessories
Wuxi Weifu Chang’an Co., Ltd. Weifu Chang’an 100.00 -- 100.00 21,000 Internal-com Y
bustion
engine
accessories
Wuxi Weifu International Trade Co. Weifu 100.00 -- 100.00 3,000 Trade Y
Ltd. International
Trade
Wuxi Weifu ITM Supercharging Weifu ITM 100.00 -- 100.00 16,000 Internal-com Y
Technique Co., Ltd. bustion
engine
accessories
Wuxi Weifu Schmidt Power System Weifu Schmidt 66.00 -- 66.00 7,600 Internal-com Y
Spare Parts Co., Ltd. bustion
engine
accessories
Ningbo Weifu Tianli Supercharging Weifu Tianli 54.2295 -- 54.2295 11,136 Internal-com Y
Technique Co., Ltd. bustion
engine
accessories
Wuxi Weifu-Autocam Fine Machinery Weifu Autocam 51.00 -- 51.00 US$ 2,110 Automobile Y
Co. Ltd. components
Wuxi Weifu Leader Catalytic Weifu Leader -- 60.00 60.00 1,000 Purifier and Y
Converter (Wuhan) Co., Ltd. (Wuhan) muffler
Weifu Leader(Chongqing)Automobile Weifu Leader -- 100.00 100.00 5,000 Purifier and Y
components Co., Ltd. (Chongqing) muffler
Nanchang Weifu Leader Auto Parts & Weifu Leader -- 100.00 100.00 5,000 Purifier and Y
Components Co., Ltd. (Nanchang) muffler
The entity included in consolidate scope has Weifu Leader (Nanchang) newly added by compare with last period. Found more in
description carried in 5- Other change of consolidate scope 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 42 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
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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.
V. Major Accounting Policies and Estimation
Whether the Company needs to comply with the disclosure requirement of special industry
No
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, automobile components, 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 dated 31
December 2018, such as financial position, operation achievements and cash flow for the year of 2018.
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.
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5. Accounting Treatment Method for Business Combinations under the same/different control
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,
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 purchaser held before the date of purchasing included) for
purchasing controlling right from the purchaser, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the purchaser 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 purchaser 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 purchaser.
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 invested party so as to obtain variable return through participating in the invested
party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested party.
Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
de-consolidated 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
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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
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
purchaser 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
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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
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,
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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
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
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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
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 invested party 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
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
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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. Note receivable and 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.
Withdrawal method for account with single In line with the difference of present value of future cash flow lower its book
significant amount and withdrawal single item bad value, carried out impairment test independently and withdrawal the bad debt
debt provision reserves
(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 independently;
Age analysis method
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 Accrual ratio for account receivable Accrual ratio for other receivables
Within 6 months
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6 months to one 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
The present value of future cash flow has major difference with the
Reasons for withdrawal single item bad debt provision
receivable group’s present value of future cash flow
Carried out impairment test independently, accrual bad debt reserves
Withdrawal method for bad debt provision according to the difference of present value of future cash flow lower its
book value
12. Inventory
Whether the Company needs to comply with the disclosure requirement of special industry
N
(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
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
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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.
13. 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
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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:
(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 investments
Long-term equity investments refer to long-term equity investments in which the Company has control, joint
control or significant influence over the invested party. 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
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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
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;
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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 invested party, 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 invested party 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 invested party’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 invested party’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 invested party,
respectively. 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 invested party. In respect of the other movement of net profit or loss, other comprehensive
income and profit distribution of invested party, 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 invested party’s net profits
or losses based on the fair values of the invested party’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 invested party and the Company, the financial statements of the invested
party 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 invested party 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
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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 invested party 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 invested party 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 invested party 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.
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 V.- 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 invested party 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 invested party) 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 invested party unit acquired shall be accounted for in
accordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party
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 invested party unit recognized by equity method (excluding net profit or loss, other
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comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current
period on pro rata basis.
In the event of loss of control over invested party 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 invested party 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 invested party 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 invested party, it shall be accounted for in accordance with
the same accounting treatment for direct disposal of relevant asset or liability by invested party at the time when
the control over invested party is lost. Movement of other owners’ equity (excluding net profit or loss, other
comprehensive income and profit distribution under net asset of invested party 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
invested party 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 invested party 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 invested party 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
invested party 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.
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(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 invested party, but to fail to control or joint control the formulation of such policies together with other parties.
While recognizing whether have significant influence by invested party, the potential factors of voting power as
current convertible bonds and current executable warrant of the invested party 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
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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) Recognition 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
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 progress
Whether the Company needs to comply with the disclosure requirement of special industry
No
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”
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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.
(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.
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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.
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
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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
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 part whose value can be recovered.
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 welfare 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
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measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
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. Accrual liabilities
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigation or arbitration,
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
Whether the Company needs to comply with the disclosure requirement of 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 retain 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
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
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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) 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.
(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.
26. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
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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
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
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expenses and amortized and using effective interest method during the leasing period. The initial direct costs
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.
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(3) Held-to-maturity investments
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 invested party, including the industry conditions, technological change, credit rating,
default rates, and risks of the counter party.
(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
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the present value. When estimating the recoverable amount, the Company shall adopt all the relevant 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
Content and causes for changes of accounting policy Approval procedures
On June 15, 2018, the Ministry of Finance issued the Notice on Amending the Format of Financial
Deliberated and
Statements of General Enterprises in 2018 (CK No. [2018] 15), revised the financial statements format of
approved by 5th
general enterprises. According to the requirement, relevant content of the accounting policy needs to be
session of the 9th BOD
adjusted, and the financial statement should be prepared in line with the format of financial statement for
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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 Financial statement of parent
statement company
The Company Notes receivable -1,464,256,934.83 -449,209,323.02
prepared the Account receivable -1,995,577,830.90 -1,047,012,889.92
financial statement of Note receivable and account receivable 3,459,834,765.73 1,496,222,212.94
2018 in line with the
Interest receivable -2,281,979.17 -97,627.77
format regulated in
Other receivables 2,281,979.17 97,627.77
CK No. [2018] 15,
Note payable -947,976,759.10 -459,762,950.78
and changed the
Account payable -2,570,956,205.83 -1,082,206,882.07
presentation of
relevant financial Note payable and account payable 3,518,932,964.93 1,541,969,832.85
statements by Interest payable -401,928.43 -93,777.78
retrospective method Other accounts payable 401,928.43 93,777.78
Long-term account payable 18,265,082.11 --
Special account payable -18,265,082.11 --
Administration expenses -391,315,234.75 -119,083,205.53
R&D expenses 391,315,234.75 119,083,205.53
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
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
VAT Taxable income commodities is stipulated by the state with declaration of export
tax rebate, rate of tax may be “exempted, credited and refunded”
City maintaining & construction tax Turnover tax payable 7%
Corporation income tax Taxable income 25%、15%
Educational surtax Turnover tax payable 5%、4.5%
Disclose reasons for different taxpaying body
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Taxpaying body Income tax rate
Weifu Mashan, Weifu Chang’an, Weifu International Trade, Weifu ITM, Weifu Schmidt, Weifu Leader (Wuhan),
25%
Weifu Leader(Nanchang)
The Company, Weifu Jinning, Weifu Leader, Weifu Tianli, Weifu Autocam , Weifu Leader(Chongqing) 15%
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 Leader 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
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.
The State Administration of Taxation announced the first item of Announcement of the State Administration of
Taxation on the Enterprise Income Tax Issues Concerning the Implementation of the Western Development
Strategy No. 12 of 2012 that from January 1, 2011 to December 31, 2020, the enterprises located in the west
region and mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industries in
the Western Region, and whose main business income accounting for more than 70% of the total income of the
enterprise in the current year can pay the corporate income tax at the tax rate of 15%. In 2018, Weifu Leader
(Chongqing) paid its corporate income tax at the tax rate of 15%.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
VII. Notes to major items in consolidated financial statements
1. Monetary funds
In RMB/CNY
Item Ending balance Opening balance
Cash on hand 194,161.03 736,773.22
Cash in bank 2,534,479,978.46 3,027,702,581.00
Other Monetary funds 81,647,601.24 90,270,058.61
Total 2,616,321,740.73 3,118,709,412.83
Other explanation
Item 2018-12-31 2017-12-31
Bank acceptance bill, L/C and other collateral 80,765,732.67 89,623,690.04
Frozen dividend 881,868.57 646,368.57
Total 81,647,601.24 90,270,058.61
Other explanation:
The frozen dividend of 881,868.57 Yuan represents the part of dividends distributed by SDEC (stock code:600841)
and Miracle Logistics (stock code:002009) for 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 receivable and account receivable
In RMB/CNY
Item Ending balance Opening balance
Notes receivable 1,148,107,603.68 1,464,256,934.83
Account receivable 1,919,793,266.91 1,995,577,830.90
Total 3,067,900,870.59 3,459,834,765.73
(1)Notes receivable
1)Classification of notes receivable
In RMB/CNY
Item Ending balance Opening balance
Bank acceptance bill 1,082,574,482.88 1,399,006,661.54
Commercial acceptance bill 65,533,120.80 65,250,273.29
Total 1,148,107,603.68 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 年年度报告全文
2) Notes receivable already pledged by the Company at the end of the period
In RMB/CNY
Item Amount pledge at period-end
Bank acceptance bill 423,527,758.19
Total 423,527,758.19
3) Notes endorsement or discount and undue on balance sheet date
In RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 776,847,577.64
Commercial acceptance bill 9,230,507.00
Total 786,078,084.64
4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB/CNY
Item Amount transfer to account receivable at period-end
Commercial acceptance bill 7,000,000.00
Total 7,000,000.00
Other explanation
The commercial acceptance bills that the company transferred to the accounts receivable due to the failure of the
drawer to perform the agreement at the end of the period were the bills of the subsidiaries controlled by Baota
Petrochemical Group Co., Ltd. and the bills accepted by Baota Petrochemical Group Finance Co., Ltd. (hereinafter
referred to as “BD bills”); as of December 31, 2018, these bills had expired.
(2)Account receivable
1) Classification of account receivable
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
with single
significant amount 7,000,00 7,000,00
0.36% 100.00%
and withdrawal bad 0.00 0.00
debt provision
separately
Account receivables
1,951,01 31,222,9 1,919,793 2,006,9 11,359,20 1,995,577,8
with bad debt 99.56% 1.60% 99.90% 0.57%
6,221.14 54.23 ,266.91 37,035. 4.21 30.90
provision accrual by
125
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
credit portfolio 11
Account receivable
with single
significant amount 1,685,11 1,685,11 1,935,1 1,935,107
0.08% 100.00% 0.10% 100.00%
and bad debts 0.25 0.25 07.25 .25
provision accrued
individually
2,008,8
1,959,70 39,908,0 1,919,793 13,294,31 1,995,577,8
Total 100.00% 2.04% 72,142. 100.00% 0.66%
1,331.39 64.48 ,266.91 1.46 30.90
36
Account receivable with single significant amount and withdrawal bad debt provision separately at period end
√ Applicable □ Not applicable
In RMB/CNY
Account receivable(by Ending balance
enterprise) Account receivable Bad debt reserve Accrual ratio Accrual causes
BD bills 7,000,000.00 7,000,000.00 100.00% Have difficulty in collection
Total 7,000,000.00 7,000,000.00 -- --
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB/CNY
Ending balance
Account age
Account receivable Bad debt reserve Accrual ratio
Subitem of within one year
Within 6 months 1,728,298,586.40
6 months to one year 179,611,775.01 17,961,177.51 10.00%
Subtotal of within one year 1,907,910,361.41 17,961,177.51
1-2 years 36,164,276.98 7,232,855.40 20.00%
2-3 years 1,521,102.38 608,440.95 40.00%
Over 3 years 5,420,480.37 5,420,480.37 100.00%
Total 1,951,016,221.14 31,222,954.23 1.60%
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
126
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Bad debt provision accrual was 27,321,822.63 Yuan; the amount collected or switches back amounting to 353,111.39 Yuan.
3) Account receivable actual charge off in the Period
In RMB/CNY
Item Amount charge off
Jiangyin KPT Power Machinery Manufacturing Co., Ltd. 450,000.00
Chengdu Chengfa Automobile Engine Co., Ltd. 142,862.60
Hangzhou Yaman Engine Co., Ltd 92,921.30
Rugao Diesel Engine Factory 76,090.00
Retail enterprise 299,307.10
Total 1,061,181.00
Charge-off for account receivable:
The amount are arising from non-related transactions
4) Top 5 receivables at ending balance by arrears party
Total year-end balance of top five receivables by arrears party amounting to 932,473,509.48 Yuan, takes 47.58
percent of the total account receivable at year-end, bad debt provision accrual correspondingly at year-end
amounting as 4,753,294.41 Yuan.
5) Account receivable derecognition due to financial assets transfer Nil
6) Assets and liabilities resulted by account receivable transfer and continues involvement Nil
3. Account paid in advance
(1)Account age of account paid in advance
In RMB/CNY
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 89,076,980.53 94.11% 94,641,350.21 96.99%
1-2 years 4,536,408.47 4.79% 2,550,321.91 2.61%
2-3 years 980,958.32 1.04% 319,185.79 0.33%
Over 3 years 57,083.99 0.06% 65,339.97 0.07%
Total 94,651,431.31 -- 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 year-end balance of top five advance payment by prepayment object amounted to 30,798,878.95 Yuan,
takes 32.54 percent of the total advance payment at year-end.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
4. Other receivables
In RMB/CNY
Item Ending balance Opening balance
Interest receivable 1,842,437.50 2,281,979.17
Other receivables 82,739,808.66 5,214,623.41
Total 84,582,246.16 7,496,602.58
(1)Interest receivable
1) Category of interest receivable
In RMB/CNY
Item Ending balance Opening balance
Fixed deposits 1,842,437.50 2,281,979.17
Total 1,842,437.50 2,281,979.17
2) Significant overdue interest
Nil
(2)Dividend receivable
Nil
(3)Other receivables
1) Category of other receivables
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
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
3.15% 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 85,423,0 2,683,20 82,739,80 8,067,4 2,852,842 5,214,623.4
96.85% 3.14% 74.40% 35.36%
provision accrual by 12.66 4.00 8.66 66.20 .79 1
credit portfolio
128
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
88,198,5 5,458,75 82,739,80 10,843, 5,628,395 5,214,623.4
Total 100.00% 6.19% 100.00% 51.91%
65.29 6.63 8.66 018.83 .42 1
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB/CNY
Other receivables(by Ending balance
enterprise) Other receivables Bad debt reserve Accrual ratio Accrual causes
American HESS 1,514,671.20 1,514,671.20 100.00% The counter party has bankruptcy
Nanjing Jinning
1,260,881.43 1,260,881.43 100.00% Have difficulty in collection
Machinery Factory
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/CNY
Ending balance
Account age
Other receivables Bad debt reserve Accrual ratio
Subitem of within one year
Within 6 months 82,715,687.17
6 months to one year 19,454.00 1,945.40 10.00%
Subtotal of within one year 82,735,141.17 1,945.40
1-2 years 5,400.00 1,080.00 20.00%
2-3 years 3,821.49 1,528.60 40.00%
Over 3 years 2,678,650.00 2,678,650.00 100.00%
Total 85,423,012.66 2,683,204.00 3.14%
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 120,915.80 Yuan; the amount collected or switches back amounting to 262,165.59 Yuan.
Including the important bad debt provision switch back or collected in the period: Nil
3) Other receivables actually written-off during the reporting period
129
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
In RMB/CNY
Item Amount charge off
Retail enterprise (Details of each amount is small and is not generated by related transactions) 28,389.00
Note of important other receivables of written-off: Nil
Note of other receivables of written-off: Nil
4)Nature of other receivables
In RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 15,328,121.55 4,883,788.59
Receivable of Compensation(note) 67,981,726.00
Cash deposit 3,206,825.88 3,457,080.65
Staff loans and petty cash 1,172,017.93 2,099,504.91
Other 509,873.93 402,644.68
Total 88,198,565.29 10,843,018.83
In 2018, the Qixia District Housing Collection Management Office of Nanjing signed the Agreement on the
Collection and Compensation of Housing on State-owned Land in Nanjing with Weifu Jinning. According to the
agreement, Weifu Jinning’s land, housing and housing attachments located at No. 69, Taiping Village, Yanziji
Town, Qixia District were levied by the government; the compensation method was monetary compensation, the
compensation amount was 104,205,929.00 yuan, which was in accordance with the evaluation result of the
housing expropriation issued by the assessment company. As of December 31, 2018, the company has delivered
the expropriated houses and land in accordance with the agreement, and delivered the relevant original house
ownership certificates and state-owned land use certificates to the Qixia District Housing Collection Management
Office of Nanjing. In 2018, the company has collected compensation of 36,224,203.00 yuan, and received the
remaining compensation of 67,981,726.00 yuan on January 30, 2019.
5) Top 5 other receivables at ending balance by arrears party
In RMB/CNY
Ratio in total ending Ending balance
Ending
Enterprise Nature Account age balance of other of bad debt
balance
receivables reserve
Qixia District Housing
Compensation for
Collection Management 67,981,726.00 Within 6 months 77.08%
disposal of assets
Office of Nanjing
Robert Bosch Company Intercourse funds of unit 12,285,081.81 Within 6 months 13.93%
Ningbo Jiangbei High-Tech
Industry Park Development Performance bond 1,767,000.00 Over three years 2.00% 1,767,000.00
Construction Co., Ltd.
American HESS Company Intercourse funds of unit 1,514,671.20 Specific 1.72% 1,514,671.20
130
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
identification
Nanjing Jinning Machinery Specific
Intercourse funds of unit 1,260,881.43 1.43% 1,260,881.43
Factory identification
Total -- 84,809,360.44 -- 96.16% 4,542,552.63
6) Other account receivables related to government grants Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets Nil
8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
5. Inventory
(1)Category of inventory
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 405,113,183.37 71,085,820.65 334,027,362.72 444,304,506.71 83,879,268.03 360,425,238.68
Goods in process 182,564,277.52 13,682,081.67 168,882,195.85 198,648,407.88 15,483,517.38 183,164,890.50
Finished goods 1,080,800,727.38 145,181,571.36 935,619,156.02 1,098,294,008.21 162,945,096.69 935,348,911.52
Total 1,668,478,188.27 229,949,473.68 1,438,528,714.59 1,741,246,922.80 262,307,882.10 1,478,939,040.70
(2) Inventory depreciation reserve
In RMB/CNY
Current increased Current decreased
Item Opening balance Ending balance
Accrual Other Switch back or write-off Other
Raw materials 83,879,268.03 29,627,483.24 42,420,930.62 71,085,820.65
Goods in process 15,483,517.38 6,039,633.18 7,841,068.89 13,682,081.67
Finished goods 162,945,096.69 41,526,222.10 59,289,747.43 145,181,571.36
Total 262,307,882.10 77,193,338.52 109,551,746.94 229,949,473.68
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:
Accrual basis for inventory impairment
Cash on hand Specific basis for recognition
provision
131
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
The materials sold due to finished Results from the estimated sale price of such inventory less the cost
Materials in stock goods manufactured, its net realizable what will happen, estimated sales expenses and relevant taxes till the
value is lower than the book value goods completed
The goods in process sold due to Results from the estimated sale price of such inventory less the cost
finished goods manufactured, its net what will happen, estimated sales expenses and relevant taxes till the
Goods in process
realizable value is lower than the book goods completed
value
its net realizable value is lower than the Results from the estimated sale price less the vary taxes which shall
Finished goods
book value be taken in process of sales
③Reasons of write-off for inventory falling price reserves:
Cash on hand Reasons of write-off
Materials in stock 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 settlement from construction contract at period-end
Nil
6. Other current assets
In RMB/CNY
Item Ending balance Opening balance
Entrust financing products 4,571,886,703.43 3,841,320,000.00
Receivable export tax rebates 7,848,937.72 14,289,026.22
Prepaid taxes and VAT retained 47,808,273.37 25,338,518.05
Input tax to be deducted and certification 3,420,317.46 2,568,145.27
Other 1,173,368.28 4,481,600.99
Total 4,632,137,600.26 3,887,997,290.53
7. Available-for-sale financial assets
(1)Available-for-sale financial assets
In RMB/CNY
132
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Equity instrument
460,603,210.95 204,628,034.04 255,975,176.91 469,495,975.95 59,433,106.95 410,062,869.00
available for sale:
Measured by fair value 121,066,008.00 121,066,008.00 266,376,600.00 266,376,600.00
Measured by cost 339,537,202.95 204,628,034.04 134,909,168.91 203,119,375.95 59,433,106.95 143,686,269.00
Other - financial products 178,080,000.00 178,080,000.00
Total 460,603,210.95 204,628,034.04 255,975,176.91 647,575,975.95 59,433,106.95 588,142,869.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB/CNY
Equity instrument Debt instrument
Category of available-for-sale financial assets Total
available for sale available for sale
Cost /liability of equity instrument/ amortization cost of debt instrument 144,371,235.00 144,371,235.00
Fair value 121,066,008.00 121,066,008.00
Amount of fair value changes that cumulatively reckoned in other
-23,305,227.00 -23,305,227.00
comprehensive gains
(3) Financial assets available for sale measured by cost at period-end
In RMB/CNY
Ratio of
Book balance Depreciation reserves
The share-holdi Current
invested ng in cash
entity Period-beg Current Current
Period-end
Period-beg Current Current
Period-end invested dividend
inning increased decreased inning increased decreased entity
Guolian 12,000,000 12,000,000
0.95%
Securities .00 .00
Guangxi
1,600,000. 1,600,000. 1,600,000. 1,600,000.
Liufa Co., 1.22%
00 00 00 00
Ltd.
Financial
Company
of
800,000.00 800,000.00 800,000.00 800,000.00
Changchai
Group Co.,
Ltd.
H&J
Vanguard 33,000,000 33,000,000 33,000,000 33,000,000
Investment .00 .00 .00 .00
Co., Ltd.
Nanjing
Hengtai
1,000,000. 1,000,000. 1,000,000. 1,000,000.
Insurance 1.85%
00 00 00 00
and Broker
Co., Ltd.
133
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Henan
Gushi
Weining 2,033,106. 2,033,106. 2,033,106. 2,033,106.
Oil Pump 95 95 95 95
& Nozzle
Co., Ltd.
Beijing
Zhike
Industrial
86,940,000 86,940,000 11,000,000 11,000,000
Investment 12.66%
.00 .00 .00 .00
Holding
Group Co.,
Ltd
Wuxi
Xidong
Technolog
5,000,000. 5,000,000.
ical 1.43%
00 00
Industry
Park Co.,
Ltd.
Shanghai
IMS
Automotiv
10,000,000 10,000,000 10,000,000 10,000,000
e 12.27%
.00 .00 .00 .00
Electronic
System
Co., Ltd.
Shanghai
CD
Dengtong 50,746,269 14,925,373 35,820,896 2,985,075.
14.93%
Equity .00 .00 .00 00
Investment
Fund
Protean 145,994,92 145,994,92
152,143,20 152,143,20
Holdings
0.00 0.00 7.09 7.09
Corp.
203,119,37 152,143,20 15,725,373 339,537,20 59,433,106 145,994,92 204,628,03 2,985,075.
Total 800,000.00 --
5.95 0.00 .00 2.95 .95 7.09 4.04 00
(4) Changes of impairment of available-for-sale financial assets in Period
In RMB/CNY
Equity instrument Debt instrument
Category of available-for-sale financial assets Total
available for sale available for sale
Balance of impairment accrual at period-begin 59,433,106.95 59,433,106.95
Current accrual 145,994,927.09 145,994,927.09
Current decreased 800,000.00 800,000.00
Balance of impairment accrual at period-end 204,628,034.04 204,628,034.04
(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
134
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
8. Long-term equity investments
In RMB/CNY
Current changes (+,-)
Ending
Investme Other Cash
balance
The Additiona nt comprehe dividend
Opening Other Ending of
invested l Capital gain/loss nsive or profit Impairme
balance equity Other balance depreciati
entity investmen reduction recognize income announce nt accrual
change on
t d under adjustmen d to
reserves
equity t issued
I. Joint venture
Wuxi
Weifu
Environm 522,882,7 42,763,29 565,646,0
ent 89.26 7.67 86.93
Catalyst
Co., Ltd.
Wuxi
Weifu
Electric 55,180,80 -438,424. 54,742,37
Drive 0.00 98 5.02
Tech. Co.,
Ltd.
522,882,7 55,180,80 42,324,87 620,388,4
Subtotal
89.26 0.00 2.69 61.95
II. Associated enterprise
Bosch
Automobi
2,608,796 1,206,095 607,769,0 3,207,122
le Diesel
,934.00 ,040.88 81.48 ,893.40
System
Co., Ltd.
Zhonglian
Automobi
959,036,1 366,839,7 239,400,0 1,086,475
le
93.36 62.36 00.00 ,955.72
Electronic
Co., Ltd.
Weifu
Precision
49,348,90 9,561,248 3,600,000 55,310,15
Machiner
8.96 .94 .00 7.90
y
Manufact
135
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
uring Co.,
Ltd.
Shinwell
Automobi
9,000,000 -1,523,52 7,476,477
le Tech.
.00 2.23 .77
(Wuxi)
Co., Ltd.
3,617,182 9,000,000 1,580,972 850,769,0 4,356,385
Subtotal
,036.32 .00 ,529.95 81.48 ,484.79
4,140,064 64,180,80 1,623,297 850,769,0 4,976,773
Total
,825.58 0.00 ,402.64 81.48 ,946.74
Other explanation
Explanation on investment for Wuxi Weifu Electric Drive Tech. Co., Ltd. and Shinwell Automobile Tech. (Wuxi) Co., Ltd measured
by equity found more in 3-(1) Joint venture or associated enterprise in Note VII
9. Investment real estate
(1) Investment real estate measured by cost
√ Applicable □ Not applicable
In RMB/CNY
House and Construction in
Item Land use right Total
Building progress
I. original book value
1.Opening balance 63,545,325.48 63,545,325.48
2.Current increased
(1) outsourcing
(2) Inventory\fixed assets\construction in process
transfer-in
(3) increased by combination
3.Current decreased 1,867,989.65 1,867,989.65
(1) disposal 1,867,989.65 1,867,989.65
(2) other transfer-out
4.Ending balance 61,677,335.83 61,677,335.83
II. Accumulated depreciation and accumulated
amortization
1.Opening balance 40,000,494.70 40,000,494.70
2.Current increased 1,566,198.87 1,566,198.87
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
(1) accrual or amortization 1,566,198.87 1,566,198.87
3.Current decreased 1,795,492.26 1,795,492.26
(1) disposal 1,795,492.26 1,795,492.26
(2) other transfer-out
4.Ending balance 39,771,201.31 39,771,201.31
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) accrual
3. Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance
IV. Book value
1.Ending Book value 21,906,134.52 21,906,134.52
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
10. Fixed assets
In RMB/CNY
Item Ending balance Opening balance
Fixed assets 2,707,374,678.61 2,584,872,628.54
Total 2,707,374,678.61 2,584,872,628.54
(1)Fixed assets
In RMB/CNY
House and Machinery Transportation Electronic and
Item Total
Building equipment equipment other equipment
I. original book value:
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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.Current increased 14,839,633.48 305,476,750.70 4,026,263.61 93,377,537.08 417,720,184.87
(1) Purchase 18,965,806.44 330,775.86 17,351,255.06 36,647,837.36
(2) Construction in progress
14,839,633.48 286,510,944.26 3,695,487.75 76,026,282.02 381,072,347.51
transfer-in
(3) increased by combination
3.Current decreased 28,603,301.23 8,944,035.83 9,927,902.72 47,475,239.78
(1) disposal or scrapping 28,603,301.23 8,944,035.83 9,927,902.72 47,475,239.78
4.Ending balance 1,552,720,830.68 2,491,008,841.08 35,760,995.37 506,932,413.54 4,586,423,080.67
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.Current increased 46,296,560.27 176,973,334.14 3,301,058.79 57,333,902.25 283,904,855.45
(1) accrual 46,296,560.27 176,973,334.14 3,301,058.79 57,333,902.25 283,904,855.45
3.Current decreased 24,603,993.39 8,252,738.72 2,604,749.60 35,461,481.71
(1) disposal or scrapping 24,603,993.39 8,252,738.72 2,604,749.60 35,461,481.71
4.Ending balance 329,964,732.08 1,229,552,990.27 24,745,652.33 240,562,371.27 1,824,825,745.95
III. Depreciation reserves
1.Opening balance 48,038,049.98 73,320.38 6,811,764.47 54,923,134.83
2.Current increased 504,907.39 504,907.39
(1) accrual 504,907.39 504,907.39
3.Current decreased 1,168,957.36 0.48 36,428.27 1,205,386.11
(1) disposal or scrapping 1,168,957.36 0.48 36,428.27 1,205,386.11
4.Ending balance 46,869,092.62 73,319.90 7,280,243.59 54,222,656.11
IV. Book value
1.Ending Book value 1,222,756,098.60 1,214,586,758.19 10,942,023.14 259,089,798.68 2,707,374,678.61
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)Fixed assets without property certification held
In RMB/CNY
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Item Book value Reasons for without the property certification
Boiler room and guard house of Weifu Jinning 2,743,741.50 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 43,746,598.64 Still in process of relevant property procedures
(6)Disposal of fixed assets Nil
11. Construction in progress
In RMB/CNY
Item Ending balance Opening balance
Construction in progress 166,414,542.18 100,345,461.28
Total 166,414,542.18 100,345,461.28
(1)Construction in progress
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
2nd Phase
construction
3,364,768.05 3,364,768.05
project in
industrial park
Weifu Tianli
Technical
3,214,458.65 3,214,458.65 16,518,417.24 16,518,417.24
Transformation
Project
Technical 62,131,476.77 1,470,033.00 60,661,443.77 23,611,775.63 1,470,033.00 22,141,742.63
Technical
transformation of 64,861,621.60 64,861,621.60 32,705,249.53 32,705,249.53
Weifu Autocam
Other Item 39,773,360.78 2,096,342.62 37,677,018.16 27,711,626.45 2,096,342.62 25,615,283.83
Total 169,980,917.80 3,566,375.62 166,414,542.18 103,911,836.90 3,566,375.62 100,345,461.28
(2) Changes of major projects under construction
In RMB/CNY
Accumul including
Proporti
Fixed ated : interest Interest
Other on of
assets amount capitaliz capitaliz
Opening Current decrease Ending project Sourceof
Item Budget transfer-i Progress of ed ation rate
balance increased d in the balance investme funds
n in the interest amount of the
Period nt in
Period capitaliz of the year
budget
ation year
2nd Phase
constructi 3,364,76 4,078,10 7,442,87
on project Other
8.05 2.04 0.09
in
industrial
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
park
Weifu
Tianli
Technical 16,518,4 12,166,2 25,470,1 3,214,45
Other
Transform 17.24 03.74 62.33 8.65
ation
Project
23,611,7 156,912, 118,393, 62,131,4
Technical Other
75.63 888.51 187.37 76.77
Technical
transforma
32,705,2 118,272, 86,115,8 64,861,6
tion of Other
49.53 226.62 54.55 21.60
Weifu
Autocam
76,200,2 291,429, 237,422, 130,207,
Total -- -- --
10.45 420.91 074.34 557.02
(3) The provision for impairment of construction projects
Nil
(4)Engineering material
Nil
12. Intangible assets
(1)Intangible assets
In RMB/CNY
Trademark and
Non-patent Computer
Item Land use right Patent trademark Total
technology software
license
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.Current increased 1,778,429.82 1,778,429.82
(1) Purchase 1,778,429.82 1,778,429.82
(2) internal R&D
(3) increased by combination
3.Current decreased 870,000.00 870,000.00
(1) disposal 870,000.00 870,000.00
4.Ending balance 381,203,520.00 3,539,793.05 41,597,126.47 52,996,879.28 479,337,318.80
II. accumulated amortization
1.Opening balance 70,825,229.06 2,271,368.77 9,709,000.00 38,344,247.79 121,149,845.62
2.Current increased 8,399,994.44 353,977.93 8,495,491.00 17,249,463.37
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(1) accrual 8,399,994.44 353,977.93 8,495,491.00 17,249,463.37
3.Current decreased 601,712.94 601,712.94
(1) disposal 601,712.94 601,712.94
4.Ending balance 78,623,510.56 2,625,346.70 9,709,000.00 46,839,738.79 137,797,596.05
III. Depreciation reserves
1.Opening balance 16,646,900.00 16,646,900.00
2.Current increased
(1) accrual
3.Current decreased
(1) disposal
4.Ending balance 16,646,900.00 16,646,900.00
IV. Book value
1.Ending Book value 302,580,009.44 914,446.35 15,241,226.47 6,157,140.49 324,892,822.75
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 right without property certification held
Nil
13. Goodwill
(1) Original book value of goodwill
In RMB/CNY
The invested entity or matters forming
Opening balance Current increased Current decreased Ending balance
goodwill
Weifu Tianli 1,784,086.79 1,784,086.79
Total 1,784,086.79 1,784,086.79
(2) Goodwill depreciation reserves
Nil
Relevant information about the assets group or portfolio goodwill included
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
At the end of the period, the company forecasted an impairment test on goodwill to estimate the present value of
future cash flows and the recoverable amount of the goodwill-related asset group, which is based on the
management's financial budget for the next five years and a discount rate of 12.21%, on the assumption that the
cash flow of the year after the financial budget for more than 5 years will remain stable. The asset group identified
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
during the goodwill impairment test is unchanged.
20%~23% gross profit margin and 9%~15% of the forecast period operating income growth rate are key
parameters during the measurement of current value of the expected future cash flow of the goodwill related asset
group. These parameters are determined by management based on historical conditions prior to the forecast period
and forecasts of market development. Through the above tests, it comes a conclusion that the company's goodwill
does not need to make provision for impairment.
14. Long-term deferred expenses
In RMB/CNY
Item Opening balance Current increased Amortized in the Period Other decrease Ending balance
Remodeling costs etc. 2,969,770.81 15,235,143.93 1,567,262.43 16,637,652.31
Total 2,969,770.81 15,235,143.93 1,567,262.43 16,637,652.31
15. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB/CNY
Ending balance Opening balance
Item Deductible temporary Deferred income Deductible Deferred income
difference tax assets temporary difference tax assets
Bad debt reserve 44,576,998.51 6,770,470.23 18,591,825.81 2,834,842.52
Inventory depreciation reserve 210,088,809.57 32,942,217.43 240,520,904.57 37,599,678.75
Depreciation reserves of fixed assets 20,661,129.43 3,315,363.51 20,459,349.51 3,285,096.52
Depreciation reserves of construction in progress 3,566,375.62 534,956.34 3,566,375.62 534,956.34
Depreciation reserves of intangible assets 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Depreciation reserves of available-for-sale
155,994,927.09 23,399,239.06 10,000,000.00 1,500,000.00
financial asset
Change of fair value of available-for-sale
23,305,227.00 3,495,784.05
financial asset
Deferred income 422,215,782.35 63,332,367.36 447,676,720.31 67,151,508.04
Internal un-realized profit 33,204,053.14 6,439,903.29 28,149,575.30 4,972,350.93
Payable salary, accrued expenses etc. 539,804,494.87 85,801,436.71 526,642,684.53 81,166,909.39
Depreciation assets, amortization difference 53,624,344.54 8,439,877.52 9,768,298.31 1,465,244.74
Deductible loss of subsidiary 9,677,975.44 2,419,493.86
Change of fair value of derivative financial
490,329.13 73,549.37
liability
Total 1,533,857,346.69 239,461,693.73 1,322,022,633.96 203,007,622.23
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
(2) Deferred income tax liabilities that are not offset
In RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation increment for combination
12,751,629.44 1,912,744.40 13,491,849.42 2,023,777.40
not under the same control
Change of fair value of available-for-sale
102,552,300.00 15,382,844.99
financial asset
Accelerated depreciation of fixed assets 31,763,694.33 4,764,554.15
Total 44,515,323.77 6,677,298.55 116,044,149.42 17,406,622.39
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB/CNY
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
-4,764,554.15 234,697,139.58 203,007,622.23
assets
Deferred income tax
-4,764,554.15 1,912,744.40 17,406,622.39
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB/CNY
Item Ending balance Opening balance
Bad debt reserve 789,822.60 330,881.07
Inventory depreciation reserve 19,860,664.11 21,786,977.53
Loss from subsidiary 139,281,223.32 160,376,822.42
Depreciation reserves of fixed assets 33,561,526.68 34,463,785.32
Depreciation reserves of available-for-sale financial asset 48,633,106.95 49,433,106.95
Total 242,126,343.66 266,391,573.29
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB/CNY
143
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Maturity year Ending amount Opening amount Note
2018 23,365,456.08 Subsidiaries have operating losses
2019 25,671,694.55 35,159,237.40 Subsidiaries have operating losses
2020 44,795,747.87 44,811,748.35 Subsidiaries have operating losses
2021 46,080,956.48 46,080,956.48 Subsidiaries have operating losses
2022 10,503,882.86 10,959,424.11 Subsidiaries have operating losses
2023 12,228,941.56 Subsidiaries have operating losses
Total 139,281,223.32 160,376,822.42 --
16. Other non-current assets
In RMB/CNY
Item Ending balance Opening balance
Engineering equipment paid in advance 251,462,676.27 195,088,675.74
Total 251,462,676.27 195,088,675.74
17. Short-term borrowings
(1)Category of short-term borrowings
In RMB/CNY
Item Ending balance Opening balance
Debt of honor 298,928,213.94 243,000,000.00
Total 298,928,213.94 243,000,000.00
(2) Overdue short-term loans without payment
Nil
18. Derivative financial liability
√Applicable □Not applicable
In RMB/CNY
Item Ending balance Opening balance
Derivative financial liability 490,329.13
Total 490,329.13
144
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
19. Note payable and account payable
In RMB/CNY
Item Ending balance Opening balance
Note payable 1,018,367,533.74 947,976,759.10
Account payable 2,047,336,834.66 2,570,956,205.83
Total 3,065,704,368.40 3,518,932,964.93
(1)Category of note payable
In RMB/CNY
Category Ending balance Opening balance
Bank acceptance bill 1,018,367,533.74 947,976,759.10
Total 1,018,367,533.74 947,976,759.10
Notes expired at year-end without paid was 0.00 Yuan.
(2)Account payable
In RMB/CNY
Item Ending balance Opening balance
Within 1 year 1,957,672,043.76 2,452,140,381.86
1-2 years 10,208,129.49 43,524,905.85
2-3 years 7,830,950.08 2,318,008.01
Over three years 71,625,711.33 72,972,910.11
Total 2,047,336,834.66 2,570,956,205.83
(3) Important account payable with account age over one year Nil
Other explanation:
Margin saving 79,315,732.67 Yuan was provided for the bank acceptance bill, 423,527,758.19 Yuan was pledge
for not receivable.
Notes expired at year-end without paid was 0.00 Yuan.
20.Accounts received in advance
(1)Accounts received in advance
In RMB/CNY
Item Ending balance Opening balance
Within 1 year 33,337,169.03 34,272,416.20
145
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
1-2 years 6,544,805.44 7,271,092.26
2-3 years 425,759.63 346,383.11
Over three years 1,022,123.70 930,344.50
Total 41,329,857.80 42,820,236.07
(2) Important account received in advance with account age over one year :Nil
(3) Projects that settle without completed from construction contract at period-end:Nil
21. Wage payable
(1)Wage payable
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 147,444,265.93 1,013,770,970.76 993,801,185.87 167,414,050.82
II. Post-employment welfare- defined
34,299,401.90 156,460,615.16 158,254,339.58 32,505,677.48
contribution plans
III. Dismissed welfare 3,397,642.16 3,204,395.56 4,000,475.97 2,601,561.75
IV. Other welfare due within one year 121,670,000.00 69,168,944.19 100,788,944.19 90,050,000.00
V. Other short-term welfare-Housing subsidies,
20,967,367.30 1,425,479.11 19,541,888.19
employee benefits and welfare funds
Total 327,778,677.29 1,242,604,925.67 1,258,270,424.72 312,113,178.24
(2) Short-term compensation
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages , bonuses, allowances and subsidies 128,145,458.85 796,197,236.14 775,906,715.58 148,435,979.41
2. Welfare for workers and staff 77,548,989.55 77,548,989.55
3. Social insurance 8,642,880.67 63,595,212.12 62,786,465.21 9,451,627.58
Including: Medical insurance 6,749,035.02 52,393,141.35 51,461,012.64 7,681,163.73
Work injury insurance 1,221,106.56 6,031,122.87 6,254,332.88 997,896.55
Maternity insurance 672,739.09 5,170,947.90 5,071,119.69 772,567.30
4. Housing accumulation fund 1,062,011.00 63,903,092.60 64,306,305.60 658,798.00
5. Labor union expenditure and personnel
9,593,915.41 12,526,440.35 13,252,709.93 8,867,645.83
education expense
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Total 147,444,265.93 1,013,770,970.76 993,801,185.87 167,414,050.82
(3) Defined contribution plans
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment insurance 17,818,243.64 120,730,720.57 120,603,297.89 17,945,666.32
2. Unemployment insurance 1,664,483.26 1,970,982.42 3,053,950.52 581,515.16
3. Enterprise annuity 14,816,675.00 33,758,912.17 34,597,091.17 13,978,496.00
Total 34,299,401.90 156,460,615.16 158,254,339.58 32,505,677.48
Other explanation:
1 Reclassification of long-term staff remuneration payable:
①An amount of RMB 128,559,600.00 in short-term remuneration is reclassified into long-term staff remuneration
payable, which represents the incentive fund of RMB 128,559,600.00 provided for in this period.
② An amount of RMB 81,262,073.88 is recorded in post office benefits - defined benefit plan and incentive fund
payable within one year, which represents the difference between the incentive fund of RMB 103,820,000.00
expected to be paid in 2019 and the beginning balance of incentive fund payable within one year, post office
benefits-defined benefit plan and the actual amount paid in this period.
2. 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 2018 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”
3. Dismiss welfare
The wages payable resulted from the implementation of inner retirement plan, the amount paid in the year RMB
3,066,483.64 re-classified into the wage payable from long-term wages payable.
22. Taxes payable
In RMB/CNY
Item Ending balance Opening balance
Value-added tax 15,332,751.18 26,675,795.24
Corporation income tax 48,855,330.99 53,333,508.69
Individual income tax 1,861,196.92 3,102,645.73
City maintaining & construction tax 884,819.63 1,873,973.56
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Educational surtax 543,438.10 1,338,552.54
Other (including stamp tax and local funds) 6,794,077.10 7,545,214.60
Total 74,271,613.92 93,869,690.36
23. Other accounts payable
In RMB/CNY
Item Ending balance Opening balance
Interest payable 517,469.08 401,928.43
Other accounts payable 63,931,254.44 62,937,940.90
Total 64,448,723.52 63,339,869.33
(1)Dividend payable
In RMB/CNY
Item Ending balance Opening balance
Long-term borrowing interest for installment 90,312.50 79,826.39
Interest payable for short-term loans 420,478.58 322,102.04
Other 6,678.00
Total 517,469.08 401,928.43
Major overdue interest: Nil
(2)Dividend payable
Nil
(3)Other accounts payable
1) Classification of other accounts payable according to nature of account
In RMB/CNY
Item Ending balance Opening balance
Deposit and margin 18,680,843.00 20,977,476.26
Social insurance and reserves funds that withholding 7,682,496.48 7,689,385.68
Intercourse funds of unit 30,982,145.98 25,754,545.98
Other 6,585,768.98 8,516,532.98
Total 63,931,254.44 62,937,940.90
2) Significant other payable with over one year age
In RMB/CNY
148
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Item Ending balance Reasons for non-repayment or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Total 4,500,000.00 --
24. Non-current liabilities due within one year
In RMB/CNY
Item Ending balance Opening balance
Long-term loans due within one year 15,000,000.00 10,000,000.00
Total 15,000,000.00 10,000,000.00
25. Other current liabilities
Nil
26. Long-term loans
(1)Category of long-term loans
In RMB/CNY
Item Ending balance Opening balance
Guaranteed loan 30,000,000.00 45,000,000.00
Total 30,000,000.00 45,000,000.00
27. Long-term account payable
In RMB/CNY
Item Ending balance Opening balance
Long-term account payable 17,157,272.00 17,496,363.00
Special accounts payable 18,265,082.11 18,265,082.11
Total 35,422,354.11 35,761,445.11
(1)Long-term account payable listed by nature
In RMB/CNY
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau(note①) 1,140,000.00 1,140,000.00
Hi-tech Branch of Nanjing Finance Bureau(note②) 1,250,000.00 1,250,000.00
Hi-tech Branch of Nanjing Finance Bureau(note③) 1,230,000.00 1,230,000.00
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Loan transferred from treasury bond (note④) 1,017,272.00 1,356,363.00
Hi-tech Branch of Nanjing Finance Bureau(note⑤) 2,750,000.00 2,750,000.00
Hi-tech Branch of Nanjing Finance Bureau(note⑥) 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau(note⑦) 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau(note⑧) 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau(note⑨) 2,740,000.00 2,740,000.00
Total 17,157,272.00 17,496,363.00
Other explanation:
note①: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.
note②: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.
note③: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.
note④: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.
note⑤: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.
note⑥: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.
note⑦: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.
note⑧: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.
note⑨:To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone, financial
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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.
(2)Special accounts payable
In RMB/CNY
Current Current Cause of
Item Opening balance Ending balance
increased decreased formation
Removal compensation of subsidiary Weifu Jinning 18,265,082.11 18,265,082.11
Total 18,265,082.11 18,265,082.11 --
Other explanation:
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 31
December 2018.
28. Long-term wages payable
(1)Long-term wages payable
In RMB/CNY
Item Ending balance Opening balance
II. Dismiss welfare 10,716,412.43 13,782,896.07
III. Other long-term welfare 63,962,762.93 16,665,236.81
Total 74,679,175.36 30,448,132.88
(2) Change of defined benefit plans
Nil
29. Deferred income
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grand 451,281,721.77 8,558,700.00 34,070,567.64 425,769,854.13 Financial allocation received
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Total 451,281,721.77 8,558,700.00 34,070,567.64 425,769,854.13 --
Item with government grants involved:
In RMB/CNY
New Amount Amount
Cost Assets
Opening grants reckoned in reckoned into Other Ending
Item reduction in related/Incom
balance in the non-operatio other income changes balance
the period e related
Period n revenue in the period
Industrialization
project for
injection VE
pump system with
electronically 3,605,001.46 721,000.30 2,884,001.16 Assets related
controlled high
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 60,400,000.0 Income
60,400,000.00
upgrade(2012) 0 related
Fund of industry 60,520,000.0 Income
60,520,000.00
upgrade(2013) 0 related
Appropriation on
central basic
2,857,142.87 714,285.71 2,142,857.16 Assets related
construction
investment
R&D and
industrialization
of the high
pressure variable
pump of the 9,956,904.72 1,543,095.28 8,413,809.44 Assets related
common rail
system of diesel
engine for
automobile
Research institute
of motor vehicle
exhaust 3,116,125.34 643,654.13 2,472,471.21 Assets related
aftertreatment
technology
Fund of industry 36,831,000.0 Income
36,831,000.00
upgrade (2014) 0 related
New-built assets
compensation 170,951,302.7 23,375,627.2 147,575,675.
Assets related
after the removal 8 6 52
of parent company
Fund of industry 40,000,000.0 Income
40,000,000.00
upgrade (2016) 0 related
Guiding capital
for the technical 9,740,000.00 9,740,000.00 Assets related
reform from State
Hi-Tech Technical
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Commission
Implementation of
the variable
760,00 10,908,721.0
cross-section 12,438,231.54 2,289,510.51 Assets related
0.00 3
turbocharger for
diesel engine
Demonstration
project for
1,808,806.64 358,776.54 1,450,030.10 Assets related
intelligent
manufacturing
7,798,7 35,331,288.5
Other 31,957,206.42 4,424,617.91 Assets related
00.00 1
451,281,721.7 8,558,7 34,070,567.6 425,769,854.
Total
7 00.00 4 13
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 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, and amortization amount of current period is 714,285.71 Yuan.
(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,
amount of 1,543,095.28 Yuan amortize in the year.
(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
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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, amount of 643,654.13 Yuan amortize in the
year.
(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 23,375,627.26 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) Guilding 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 (760,000 Yuan received in the period), 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, amount of 2,289,510.51 Yuan
amortize in the year.
(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 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. Amortization for the year amounts to 358,776.54 Yuan.
30. Share capital
In RMB
Changeduringthe year(+,-)
Opening balance New shares Shares transferred from Ending balance
Bonus share Other Subtotal
issued capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
31. Capital reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3,372,647,413.97 1,818,607.75 3,370,828,806.22
capital premium)
Other Capital reserve 45,193,988.92 45,193,988.92
Total 3,417,841,402.89 1,818,607.75 3,416,022,795.14
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Other explanation, including changes in the period and reasons for changes;
The share premium was reduced by 1,818,607.75 in the current period, which was the difference between the long-term equity
investment newly acquired by the company through the purchase of minority shareholding of Weifu Tianli and the net assets share that
Weifu Tianli continued to calculate from the date of purchase according to the new shareholding ratio.
32. Other comprehensive income
In RMB/CNY
Current period
Less: written in
other
Account comprehensive
Opening Belong to Belong to Ending
Item before income in
balance Less : income parent minority balance
previous period
income tax in and carried tax expense company after shareholders
tax after tax
the year forward to gains
and losses in
current period
II. Other comprehensive income
87,169,455.0 -117,053,06 -18,878,629 -106,978,89 -19,809,4
items which will be reclassified 8,804,463.00
1 4.00 .04 7.96 42.95
subsequently to profit or loss
Gains or losses arising from
87,169,455.0 -117,053,06 -18,878,629 -106,978,89 -19,809,4
changes in fair value of 8,804,463.00
1 4.00 .04 7.96 42.95
available-for-sale financial assets
87,169,455.0 -117,053,06 -18,878,629 -106,978,89 -19,809,4
Total other comprehensive income 8,804,463.00
1 4.00 .04 7.96 42.95
Other explanation, including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flow
hedge profit/loss Nil
33. Reasonable reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 2,606.93 20,140,422.85 18,524,539.28 1,618,490.50
Total 2,606.93 20,140,422.85 18,524,539.28 1,618,490.50
Other explanation, including changes and reasons for changes:
(1)Instructions for the withdrawing of special reserves (safe production cost): According to the CQ [2012] No. 16 - Administrative
Measures on the Withdrawing and Use of Enterprise Safety Production Expenses jointly issued by the Ministry of Finance and the
State Administration of Work Safety, in the current period, the Company adopted excess retreat method for quarterly withdrawal by
taking the actual operating income of the previous period as the withdrawing basis.
(2)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.
(3)Other 7,024.21 Yuan, the difference between the special reserves obtained by the company from the purchase of minority
shareholding of Weifu Tianli and the special reserves to be calculated according to the new shareholding ratio.
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
34. Surplus reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus reserves 510,100,496.00 510,100,496.00
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.
35. Retained profit
In RMB/CNY
Item Current period Last period
Retained profits at the end of last year before adjustment 9,811,609,138.92 7,845,639,990.88
Retained profits at the beginning of the year 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 2,396,077,415.21 2,571,339,490.04
Common dividend payable 1,210,740,684.00 605,370,342.00
Retained profit at period-end 10,996,945,870.13 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
36. Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main operating 8,262,954,878.87 6,334,140,163.43 8,535,599,504.73 6,420,982,285.26
Other business 458,719,792.31 357,716,676.54 481,680,655.07 340,747,113.10
Total 8,721,674,671.18 6,691,856,839.97 9,017,280,159.80 6,761,729,398.36
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
37. Operating tax and extras
In RMB/CNY
Item Current period Last Period
City maintaining & construction tax 23,365,378.57 27,342,047.81
Educational surtax 16,600,470.65 19,529,544.78
Property tax 15,673,296.50 16,168,030.42
Land use tax 6,488,307.08 6,297,452.61
Vehicle use tax 37,664.70 38,597.80
Stamp duty 3,054,969.25 3,033,552.04
Other taxes 168,243.17 3,915.02
Total 65,388,329.92 72,413,140.48
38. Sales expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 49,030,453.69 34,445,822.91
Consumption of office materials and
13,500,456.63 11,190,696.17
business travel charge
Transportation charge 36,096,699.36 38,950,920.39
Warehouse charge 13,503,116.85 12,028,839.44
Three-guarantee fee 93,151,070.22 75,299,163.49
Business entertainment fee 18,934,440.36 14,336,526.65
Other 13,623,235.17 8,602,811.32
Total 237,839,472.28 194,854,780.37
39. Administration expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 242,611,825.10 258,766,943.35
Depreciation charger and long-term assets amortization 53,544,172.92 45,736,858.43
Consumption of office materials and business travel charge 19,301,684.66 21,626,135.74
Incentive fund 128,559,600.00 83,610,000.00
Other 140,988,103.07 129,753,615.34
Total 585,005,385.75 539,493,552.86
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
40. R&D expenses
In RMB/CNY
Item Current period Last Period
Technological development expenses 403,263,972.20 391,315,234.75
Total 403,263,972.20 391,315,234.75
41. Financial expenses
In RMB/CNY
Item Current period Last Period
Interest expenses 17,562,164.63 10,044,328.07
Note discount interest expenses 413,348.40 1,196,392.60
Less:Saving interest income 34,156,380.22 18,726,974.19
Gains/losses from exchange -4,437,834.09 11,345,354.36
Handling charges 3,225,120.73 3,457,895.95
Total -17,393,580.55 7,316,996.79
Other explanation:
The interest expenses for year of 2018 including the 406,834.00 Yuan received of regards for the provincial
engineering center
42. Losses of devaluation of asset
In RMB/CNY
Item Current period Last Period
I. Bad debt loss 27,180,572.84 2,009,413.99
II. Inventory falling price loss 77,193,338.52 97,326,180.89
III. Impairment loss of financial assets available for sale 145,994,927.09
VII. Impairment loss of fixed assets 504,907.39 19,884,135.49
Total 250,873,745.84 119,219,730.37
43. Other income
In RMB/CNY
Sources of income generated Current period Last Period
Government grants with routine operation activity concerned 48,404,480.99 40,394,724.11
Other
Total 48,404,480.99 40,394,724.11
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
44. Investment income
In RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based on equity 1,623,761,059.52 1,604,027,207.30
Investment income from holding financial assets available for sales 3,274,260.41 3,291,000.00
Investment income obtained from disposal of financial assets
17,370,816.75 24,625,516.88
available for sales
Entrust financial income 311,261,918.65 221,705,034.02
Gains/losses of subsidiary liquidation -10,473.00
Total 1,955,668,055.33 1,853,638,285.20
45. Income from change of fair value
In RMB/CNY
Sources Current period Last Period
Financial assets measured by fair value and with its variation reckoned into
-490,329.13
current gains/losses
Including: Income from change of fair value from derivative financial
-490,329.13
instrument
Total -490,329.13
46. Income from assets disposal
In RMB/CNY
Sources Current period Last Period
Income from disposal of non-current assets 103,712,793.61 1,156,664.72
Losses from disposal of non-current assets -1,239,798.14 -1,905,592.35
Total 102,472,995.47 -748,927.63
Gains from non-current assets disposal was mainly the compensation of expropriation of housing and land
of Weifu Jinning. The detail see Note of VII. 4.(3).4)"Nature of other receivables"
47. Non-operating income
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Government grants 6,631,568.54
Other 1,264,830.90 5,336,599.33 1,264,830.90
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Total 1,264,830.90 11,968,167.87 1,264,830.90
Government grants reckoned into current gains/losses:
In RMB/CNY
Whether the impact
Whether Assets
Granting Cause of Nature of subsidies on the Current
Item special Last period related/Income
subject distribution type current profit and period
subsidies related
loss
Stabilization subsidy 3,202,219.54 Income related
Patent funding 451,800.00 Income related
Support funds 1,100,000.00 Income related
Reward for acceptance of
500,000.00 Income related
new third board
Innovation ability reward 500,000.00 Income related
The reward of top thirty
industrial enterprise, Star
enterprise in service
industry and
demonstration award for
enterprise innovation and 400,000.00 Income related
development for the year
of 2016 in Jiangbei
District from People’s
Government of Jiangbei
District, Ningbo City
Other 477,549.00
Total 6,631,568.54
48. Non-operating expense
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donations 1,313,246.00 1,313,246.00
Non-current assets disposal losses 6,310,772.90 2,473,919.63 6,310,772.90
Including: fixed assets disposal losses 6,310,772.90 2,473,919.63 6,310,772.90
Local fund 1,804,429.63 2,442,882.51
Other 548,711.02 856,791.48 548,711.02
Total 9,977,159.55 5,773,593.62 8,172,729.92
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
49. Income tax expense
(1)Income tax expense
In RMB/CNY
Item Current period Last Period
Payable tax in current period 165,302,326.13 176,981,021.79
Adjusted the previous income tax -1,108,883.52 -853,023.84
Increase/decrease of deferred income tax assets -32,958,287.45 7,189,092.22
Increase/decrease of deferred income tax liability 4,653,521.15 -111,033.00
Total 135,888,676.31 183,206,057.17
(2)Adjustment on accounting profit and income tax expenses
In RMB/CNY
Item Current period
Total profit 2,602,183,379.78
Income tax measured by statutory/applicable tax rate 390,327,506.97
Impact by different tax rate applied by subsidies 1,919,809.73
Adjusted the previous income tax -1,108,883.52
Impact by non-taxable revenue -243,985,949.07
Impact on cost, expenses and losses that unable to deducted 3,901,402.22
Impact by the deductible losses of the un-recognized previous deferred income tax -12,744,805.79
The deductible temporary differences or deductible losses of the un-recognized deferred income tax
17,703,986.16
assets in the Period
Impact on additional deduction -21,253,446.60
Other 1,129,056.21
Income tax expense 135,888,676.31
50. Other comprehensive income
See Note VII. 32 “Other comprehensive income”
51. Items of ash flow statement
(1) Other cash received in relation to operation activities
In RMB/CNY
161
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Item Current period Last Period
Cash in bank Interest income 34,156,380.22 18,726,974.19
Government grants 23,299,447.35 15,752,016.54
Margin on operation bill 53,427,527.69 25,598,576.55
Other 7,294,400.13 5,901,111.62
Total 118,177,755.39 65,978,678.90
(2)Other cash paid in relation to operation activities
In RMB/CNY
Item Current period Last Period
Cash cost 530,988,250.24 505,309,877.27
Other 28,148,968.46 42,308,458.75
Total 559,137,218.70 547,618,336.02
(3)Cash received from other investment activities
In RMB/CNY
Item Current period Last Period
Letter of credit for import equipment margin 79,984.34
Government grants received relevant to assets 4,480,000.00
Total 4,559,984.34
(4)Cash paid related with investment activities
In RMB/CNY
Item Current period Last Period
Margin paid by L/C for purchase of equipment 1,090,775.32
Total 1,090,775.32
(5) Other cash received in relation to financing activities
In RMB/CNY
Item Current period Last Period
The borrowings/loans received by Weifu Leader from Wuxi Industry
5,470,000.00
Group
Total 5,470,000.00
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(6)Cash paid related with financing activities
In RMB/CNY
Item Current period Last Period
Liquidation charges 1,049,711.28
National debt paid transfer to loans 339,091.00 339,091.00
Account paid for purchasing minority equity of Weifu Tianli 15,570,000.00
Total 15,909,091.00 1,388,802.28
52. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB/CNY
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 2,466,294,703.47 2,647,209,924.58
Add: Assets impairment provision 250,873,745.84 119,219,730.37
Depreciation of fixed assets, consumption of oil assets and depreciation of
285,471,054.32 266,894,355.57
productive biology assets
Amortization of intangible assets 17,249,463.37 18,616,311.55
Amortization of long-term deferred expenses 1,567,262.43 1,049,187.11
Loss from disposal of fixed assets, intangible assets and other long-term
-102,472,995.47 748,927.63
assets(gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 6,310,772.90 2,473,919.63
Gain/loss of fair value changes (gain is listed with “-”) 490,329.13
Financial expenses (gain is listed with “-”) 14,840,492.09 19,423,542.44
Investment loss (gain is listed with “-”) -1,956,287,284.27 -1,849,764,125.27
Decrease of deferred income tax asset( (increase is listed with “-”) -32,958,287.45 7,189,092.22
Increase of deferred income tax liability (decrease is listed with “-”) 4,653,521.15 -111,033.00
Decrease of inventory (increase is listed with “-”) -35,700,126.59 -223,562,160.19
Decrease of operating receivable accounts (increase is listed with “-”) 381,642,704.00 -899,544,673.74
Increase of operating payable accounts (decrease is listed with “-”) -429,597,489.90 848,035,110.26
Other 2,003,661.61 -180,208.09
Net cash flows arising from operating activities 874,381,526.63 957,697,901.07
2. Material investment and financing not involved in cash flow -- --
3. Net change of cash and cash equivalents: -- --
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Balance of cash at period end 2,404,674,139.49 2,948,439,354.22
Less: Balance of cash equivalent at year-begin 2,948,439,354.22 3,795,223,678.11
Net increase of cash and cash equivalents -543,765,214.73 -846,784,323.89
(2)Net cash payment for the acquisition of a subsidiary in the period
Nil
(3)Net cash received from the disposal of subsidiaries
Nil
(4)Constitution of cash and cash equivalent
In RMB/CNY
Item Ending balance Opening balance
I. Cash 2,404,674,139.49 2,948,439,354.22
Including: Cash on hand 194,161.03 736,773.22
Bank deposit available for payment at any time 2,404,479,978.46 2,947,702,581.00
II. Balance of cash and cash equivalents at the period-end 2,404,674,139.49 2,948,439,354.22
53. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil
54. Assets with ownership or use right restricted
In RMB/CNY
Item Ending Book value Restriction reason
Monetary funds 1,450,000.00 Cash deposit paid for LC
Notes receivable 423,527,758.19 Notes pledge for bank acceptance
Monetary funds 79,315,732.67 Cash deposit paid for bank acceptance
Monetary funds 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
Available-for-sal Intermediate People's Court), the property with the value of 217 million Yuan under the name
112,850,891.16 of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye
e financial assets Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) 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 618,026,250.59 --
164
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
55. Item of foreign currency
(1) Item of foreign currency
In RMB/CNY
Closing balance of foreign
Item Rate of conversion Ending RMB balance converted
currency
Monetary funds -- --
Including: USD 31,373,244.14 6.8632 215,320,849.17
EUR 2,499,310.16 7.8473 19,612,836.63
HKD 16,024,984.73 0.8762 14,041,091.62
JPY 8,364,309.47 0.061887 517,642.02
Account receivable -- --
Including: USD 4,195,415.85 6.8632 28,793,978.06
EUR 1,040,354.52 7.8473 8,163,974.02
JPY 3,314,442.00 0.061887 205,120.87
Short-term borrowings
Including: EUR 3,558,958.36 7.8473 27,928,213.94
Account payable
Including: USD 411,335.19 6.8632 2,823,075.67
EUR 1,615,586.95 7.8473 12,677,995.47
CHF 105,642.70 6.9494 734,153.38
JPY 31,475,376.00 0.061887 1,947,916.59
(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
56. Government grants
(1)Government grants
In RMB/CNY
Amount reckoned in
Category Amount Item
current gain/loss
Industrialization project for injection VE pump Industrialization project for injection VE
721,000.30 721,000.30
system with electronically controlled high pump system with electronically
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pressure for less-emission diesel used controlled high pressure for less-emission
diesel used
Key laboratory (engineering center) of the Key laboratory (engineering center) of the
pollution control from motor vehicle exhausting 170,000.00 pollution control from motor vehicle 170,000.00
in Jiangsu province exhausting in Jiangsu province
Grants for key laboratory in Wuxi City 70,000.00 Grants for key laboratory in Wuxi City 70,000.00
Supporting funds for technical
Supporting funds for technical improvement for
improvement for annual output as 140,000
annual output as 140,000 pieces of packaging line
259,000.00 pieces of packaging line of catalytic 259,000.00
of catalytic reduction system for commercial
reduction system for commercial vehicles
vehicles (2014)
(2014)
Technical transformation for annual output as Technical transformation for annual output
225,749.56 225,749.56
300,000 sets of four-cylinder engine supercharger as 300,000 sets of four-cylinder engine
Annual output of 150000 gasoline engine Annual output of 150000 gasoline engine
100,000.00 100,000.00
superchargers superchargers
Depreciation/amortization compensation for the Depreciation/amortization compensation
assets newly established after parent company 23,375,627.26 for the assets newly established after 23,375,627.26
relocated parent company relocated
Central capital investment allocation from Wuxi Central capital investment allocation from
714,285.71 714,285.71
Finance Bureau (R&D center) Wuxi Finance Bureau (R&D center)
Provincial special guiding funds for scientific and Provincial special guiding funds for
technological innovation and achievement 328,571.43 scientific and technological innovation 328,571.43
conversion and achievement conversion
Technical reform of catalytic reduction
Technical reform of catalytic reduction system for
233,555.56 system for 180,000 commercial vehicles 233,555.56
180,000 commercial vehicles annually
annually
Development and industrialization of high Development and industrialization of high
pressure variable pump for common rail system 1,543,095.28 pressure variable pump for common rail 1,543,095.28
of vehicle diesel engine system of vehicle diesel engine
Business development funds support
Business development funds support allocation
200,000.00 allocation from Finance bureau of the new 200,000.00
from Finance bureau of the new district
district
Funds for intelligent promotion of
Funds for intelligent promotion of intelligent
intelligent integration of two
integration of two modernization
modernization
Demonstration of intelligent
Demonstration of intelligent manufacturing 358,776.54 358,776.54
manufacturing
Research institute of motor vehicle exhaust Research institute of motor vehicle
643,654.13 643,654.13
post-treatment exhaust post-treatment
Implementation scheme of the variable section 2,289,510.51 Implementation scheme of the variable 2,289,510.51
166
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turbocharger for diesel engine section turbocharger for diesel engine
Special funds for technical transformation 97,010.66 Special funds for technical transformation 97,010.66
Generation subsidy for distributed PV
Generation subsidy for distributed PV projects 923,100.00 923,100.00
projects
Funds allocation for science & technology Funds allocation for science & technology
1,302,000.00 1,302,000.00
development plan development plan
Supporting funds for new products and new Supporting funds for new products and
projects of the intelligent manufacturing industrial 2,250,000.00 new projects of the intelligent 2,250,000.00
park manufacturing industrial park
Funds for technical reform of boiler wheel Funds for technical reform of boiler wheel
supercharger for annual output of 200,000 1,193,286.26 supercharger for annual output of 200,000 1,193,286.26
gasoline engines gasoline engines
Other 11,406,257.79 Other 11,406,257.79
Total 48,404,480.99 Total 48,404,480.99
(2)Government grants rebate
Nil
57. Other
Nil
VIII. Changes of consolidation scope
1. Enterprise combine not under the same control
Nil
2. Enterprise combine under the same control
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Nil
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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:
Change of consolidation Way for obtained the Time for obtained Ratio of
Name
scope equity the equity contribution
Increase of the consolidation Nanchang Weifu Leader Auto Parts & Newly established 2018-3-8 100.00%
scope Components Co., Ltd.
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Share-holding ratio
Registered
Subsidiary operation Business nature Acquired way
place Directly Indirectly
place
Enterprise combine
Weifu Jinning Nanjing Nanjing Spare parts of internal-combustion engine 80.00%
under the same control
Enterprise combine
Weifu Leader Wuxi Wuxi Automobile exhaust purifier, muffler 94.81%
under the same control
Weifu Mashan Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment
Weifu Chang’an Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment
Weifu International Enterprise combine
Wuxi Wuxi Trading 100.00%
Trade under the same control
Enterprise combine not
Weifu ITM Wuxi Wuxi Spare parts of internal-combustion engine 100.00%
under the same control
Weifu Schmidt Wuxi Wuxi Spare parts of internal-combustion engine 66.00% Investment
Enterprise combine not
Weifu Tianli Ningbo Ningbo Spare parts of internal-combustion engine 54.23%
under the same control
Enterprise combine not
Weifu Autocam Wuxi Wuxi Spare parts of internal-combustion engine 51.00%
under the same control
Weifu Leader
Wuhan Wuhan Automobile exhaust purifier, muffler 60.00% Investment
(Wuhan)
Weifu Chongqi Chongqin
Automobile exhaust purifier, muffler 100.00% Investment
Leader(Chongqing) ng g
Weifu Nanchan
Nanchang Automobile exhaust purifier, muffler 100.00% Investment
Leader(Nanchang) g
168
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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:
Explanation on equity method for calculation of the investment for Weifu Electronic Drive
The company holds 80.00% equity of Weifu Electronic Drive; the Board of Directors of Weifu Electronic Drive Board consists of 5
directors, 3 of whom are appointed by the company; Weifu Electronic Drive’s important board resolutions can only pass the resolution
when being unanimously voted by all the present directors. According to this judgment, the company cannot control Weifu Electronic
Drive, and its investment should be used as an investment in the joint venture, which adopts equity method for business accounting.
Major structured entity included in consolidate statement: Nil
Basis of termination of agent or consignor: Nil
(2)Important non-wholly-owned subsidiary
In RMB/CNY
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Weifu Jinning 20.00% 41,594,834.20 15,604,600.00 194,243,753.02
Weifu Schmidt 34.00% -114,183.58 9,481,779.44
Weifu Leader 5.19% 3,443,152.24 84,803,572.03
Weifu Tianli 45.77% 9,419,706.13 105,986,824.42
Weifu Autocam 49.00% 15,873,779.27 19,600,000.00 143,626,339.62
Total 70,217,288.26 35,204,600.00 538,142,268.53
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/CNY
Ending balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Weifu Jinning 994,953,012.95 342,560,339.76 1,337,513,352.71 313,381,459.40 50,522,767.70 363,904,227.10
Weifu Schmidt 92,342,474.64 48,855,179.90 141,197,654.54 112,913,283.31 112,913,283.31
Weifu Leader 1,958,116,370.10 1,038,234,646.34 2,996,351,016.44 1,343,115,779.10 23,850,612.52 1,366,966,391.62
Weifu Tianli 357,404,441.32 233,476,608.83 590,881,050.15 310,421,704.26 47,838,928.45 358,260,632.71
Weifu Autocam 242,022,679.84 310,989,080.94 553,011,760.78 262,647,739.06 262,647,739.06
Total 3,644,838,978.85 1,974,115,855.77 5,618,954,834.62 2,342,479,965.13 122,212,308.67 2,464,692,273.80
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Opening balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
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
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 2,560,187,157.36 140,779,204.27 2,700,966,361.63
In RMB/CNY
Current period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Weifu Jinning 613,545,903.22 208,505,596.11 208,505,596.11 39,369,830.31
Weifu Schmidt 178,431,433.45 -354,936.30 -354,936.30 18,242,932.77
Weifu Leader 2,800,874,733.81 74,556,894.40 74,556,894.40 -6,864,502.47
Weifu Tianli 378,601,103.90 20,603,781.23 20,603,781.23 21,145,599.68
Weifu Autocam 466,437,403.21 32,356,669.68 32,356,669.68 57,006,160.96
Total 4,437,890,577.59 335,668,005.12 335,668,005.12 128,900,021.25
Last Period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Weifu Jinning 639,266,713.42 123,846,080.79 123,846,080.79 -14,327,763.61
Weifu Schmidt 132,237,721.83 375,719.98 375,719.98 -1,277,329.17
Weifu Leader 2,545,737,100.66 102,430,580.66 102,430,580.66 138,916,907.91
Weifu Tianli 331,060,782.23 8,621,636.11 8,621,636.11 13,915,991.57
Weifu Autocam 518,304,786.01 85,063,618.51 85,063,618.51 70,463,396.99
Total 4,166,607,104.15 320,337,636.05 320,337,636.05 207,691,203.69
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
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(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
(1)Owners equity shares changed in subsidiary
In May 2018, part of the equity held by minority of Weifu Tianli are purchased by the Company with 15.57 million Yuan in cash;
after that, owners’ equity of the Weifu Tianli held by the Company up to 54.2295% instead of 47.9436%
(2)Impact on minority’s interest and owners’ equity attributable to parent company
In RMB/CNY
Weifu Tianli
Cost of acquisition/disposal consideration 15,570,000.00
--Cash 15,570,000.00
Less: Net assets share of the subsidiary calculated according to the equity ratio obtained/disposed 13,751,392.25
Balance 1,818,607.75
Including:Capital reserve adjustment 1,818,607.75
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Share-holding ratio Accounting
treatment on
Main
Registered investment for
Joint venture or associated enterprise operation Business nature
place Directly Indirectly joint venture and
place
associated
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst Co., Ltd. Wuxi Wuxi Catalyst 49.00% Equity method
Wheel-hub
Wuxi Weifu Electric Drive Tech. Co., Ltd. Wuxi Wuxi 80.00% Equity method
motor
II. Associated enterprise
Internal-combus
Bosch Automobile Diesel System Co., Ltd. Wuxi Wuxi tion engine 32.50% 1.50% Equity method
accessories
Zhonglian Automobile Electronic Co., Ltd. Shanghai Shanghai Internal-combus 20.00% Equity method
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tion engine
accessories
Internal-combus
Weifu Precision Machinery Manufacturing Co.,
Wuxi Wuxi tion engine 20.00% Equity method
Ltd.
accessories
Automobile
Shinwell Automobile Tech. (Wuxi) Co., Ltd. Wuxi Wuxi 45.00% Equity method
components
Holding shares ratio different from the voting right ratio:
①Explanation on equity method for calculation of the investment for Weifu Electronic Drive
The company holds 80.00% equity of Weifu Electronic Drive; the Board of Directors of Weifu Electronic Drive Board consists of 5
directors, 3 of whom are appointed by the company; Weifu Electronic Drive’s important board resolutions can only pass the resolution
when being unanimously voted by all the present directors. According to this judgment, the company cannot control Weifu Electronic
Drive, and its investment should be used as an investment in the joint venture, which adopts equity method for business accounting.
②Explanation on equity method for calculation of the investment for Shinwell Automobile Tech. (Wuxi) Co., Ltd.
The subsidiary Weifu International Trade holds a 45.00% stake in Shinwell Automobile Tech. (Wuxi); the Board of Directors of
Shinwell Automobile Tech. (Wuxi) consists of 5 directors, 2 of whom are appointed by Weifu International Trade.
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/CNY
Ending balance/Current period Opening balance/Last Period
Weifu Environment Weifu Environment
Current assets 2,524,886,121.93 3,011,258,785.42
Including: cash and cash equivalents 62,820,292.38 120,584,888.35
Non -current assets 312,633,597.82 284,089,421.89
Total assets 2,837,519,719.75 3,295,348,207.31
Current liabilities 1,658,404,950.50 2,211,790,474.13
Non-current liabilities 24,735,000.00 16,450,000.00
Total liabilities 1,683,139,950.50 2,228,240,474.13
Shareholders’ equity attributable to parent company 1,154,379,769.25 1,067,107,733.18
Share of net assets calculated by shareholding ratio 565,646,086.93 522,882,789.26
Book value of equity investment in joint ventures 565,646,086.93 522,882,789.26
Operation income 3,353,480,152.95 2,949,564,841.97
Financial expenses 106,283,984.35 77,268,038.98
Income tax expense -9,245,702.92 13,745,114.70
Net profit 91,456,868.91 162,415,440.00
Total comprehensive income 91,456,868.91 162,415,440.00
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(3)Main financial information of the important associated enterprise
In RMB/CNY
Ending 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 10,042,409,061.0
153,125,575.56 281,266,308.21 8,194,014,833.80 688,116,022.56 238,511,756.68
4
Non -current
2,756,104,679.18 5,277,976,705.66 133,470,007.84 2,696,164,046.92 4,668,848,226.74 123,616,959.50
assets
12,798,513,740.2 10,890,178,880.7
Total assets 5,431,102,281.22 414,736,316.05 5,356,964,249.30 362,128,716.18
2 2
Current liabilities 4,100,048,133.30 2,999,283.95 135,365,421.92 3,949,654,684.13 566,609,302.26 112,597,321.52
Non-current
2,759,548.45 2,210,310.00
liabilities
Total liabilities 4,100,048,133.30 5,758,832.40 135,365,421.92 3,949,654,684.13 568,819,612.26 112,597,321.52
Attributable to
parent company
8,698,465,606.92 5,425,343,448.82 279,370,894.13 6,940,524,196.59 4,788,144,637.04 249,531,394.66
shareholders’
equity
Share of net
assets calculated
2,957,478,306.35 1,085,068,689.76 55,874,178.83 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 -18,144,174.02 -34,986.88 -18,770,053.91 -28,335.94
trading
--Other -0.28 -529,034.05 -0.28 -529,034.03
Book value of
equity investment
3,207,122,893.40 1,086,475,955.72 55,310,157.90 2,608,796,934.00 959,036,193.36 49,348,908.96
in associated
enterprise
15,539,892,004.6 15,389,748,441.4
Operation income 23,186,214.38 310,813,025.45 21,430,344.10 235,059,618.08
7 4
Net profit 3,545,497,532.33 1,834,198,811.78 47,839,499.47 3,421,160,042.39 1,777,156,110.72 32,599,240.87
Total
comprehensive 3,545,497,532.33 1,834,198,811.78 47,839,499.47 3,421,160,042.39 1,777,156,110.72 32,599,240.87
income
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Dividends
received from
associated 607,769,081.48 239,400,000.00 3,600,000.00 666,460,456.42 207,800,000.00 3,600,000.00
enterprise in the
year
Other explanation
① adjustment item for other “-0.28”: the differential tail;
②The dividend of 3.6 million Yuan distributed from Weifu Precision Machinery are collected by bank acceptance in the year; the
note still in balance of note receivable on 31st December 2018
(4)Financial summary for non-important Joint venture and associated enterprise
In RMB/CNY
Ending balance/Current period Opening balance/Last Period
Joint venture: -- --
Total book value of investment 54,742,375.02
Amount based on share-holding ratio -- --
--Net profit -438,424.98
--Total comprehensive income -438,424.98
Associated enterprise: -- --
Total book value of investment 7,476,477.77
Amount based on share-holding ratio -- --
--Net profit -1,523,522.23
--Total comprehensive income -1,523,522.23
(5)Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7)Unconfirmed commitment with joint venture investment concerned
Nil
(8)Intangible liability with joint venture or associated enterprise investment concerned
Nil
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
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 V. 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 31st
December 2018; lists of the maximum credit risk exposure of the Company are as:
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Item Amount of merge Amount of parent company
Account receivable 1,919,793,266.91 742,246,990.99
Other receivables-Other receivables 82,739,808.66 196,660,409.35
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
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 HKD, except for the USD, EUR, SF, JPY and HKD 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 31st December 2018, except for the follow assets or liabilities listed with foreign currency, assets and
liabilities of the Company are carried with RMB
①Foreign currency assets of the Company till end of 31st December 2018
Ending foreign
Cash on hand Convert rate Ending RMB balance converted Ratio in assets(%)
currency balance
Monetary funds
Including: USD 31,373,244.14 6.8632 215,320,849.17 1.03
EUR 2,499,310.16 7.8473 19,612,836.63 0.09
JPY 8,364,309.47 0.061887 517,642.02 0.00
HKD 16,024,984.73 0.8762 14,041,091.62 0.07
Account receivable
Including: USD 4,195,415.85 6.8632 28,793,978.06 0.14
EUR 1,040,354.52 7.8473 8,163,974.02 0.04
JPY 3,314,442.00 0.061887 205,120.87 0.00
Total ratio in assets 1.37
②Foreign currency liability of the Company till end of 31st December 2018:
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Ending foreign
Cash on hand Convert rate Ending RMB balance converted Ratio in assets(%)
currency balance
Short-term borrowings
Including: EUR 3,558,958.36 7.8473 27,928,213.94 0.63
Account payable
Including: USD 411,335.19 6.8632 2,823,075.67 0.06
EUR 1,615,586.95 7.8473 12,677,995.47 0.29
CHF 105,642.70 6.9494 734,153.38 0.02
JPY 31,475,376.00 0.061887 1,947,916.59 0.04
Total ratio in liabilities 1.04
③Other 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 16th session of 8th BOD, 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/CNY
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(2) Equity instrument investment 121,066,008.00 -- -- 121,066,008.00
Total assets sustaining measured by fair value 121,066,008.00 121,066,008.00
Derivative financial liability 490,329.13 490,329.13
Total liability sustaining measured by fair value 490,329.13 490,329.13
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
According to relevant requirement of accounting standards, the Company continues to measure the financial
assets available for sale-equity instrument investment by fair value on balance sheet date. On 31 December 2018,
the financial assets available for sale-equity instrument investment held by the Company refers to the SDEC
(stock code: 600841) and Miracle Logistics (Stock code: 002009), determining basis of the market price at
period-end refers to the closing price of 28 December 2018, the 29 December 2018, 30 December 2018 and 31
December 2018 are nonworking days.
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second-order
The derivative financial liabilities that continued to be measured at the second level of fair value were the forward
exchange settlement contracts and RMB option contracts held by the subsidiary Weifu Autocam, the fair value
measurement of the derivative financial liabilities was measured by the fair value of the forward exchange
settlement contracts and RMB option contracts offered by the bank that signed the contracts.
XII. Related party and related transactions
1. Parent company of the enterprise
Parent Registration Share-holding ratio on the Voting right ratio on
Business nature Registered capital
company place enterprise for parent company the enterprise
Wuxi Industry Operation of 4720.6710 million
Wuxi 20.22% 20.22%
Group state-owned assets Yuan
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
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Jiangsu Province.
2. Subsidiary of the Enterprise
Found more in Note IX. 1.” Equity in subsidiary”
3. Joint venture and associated enterprise
Found more in Note IX.3. “Equity in joint venture and associated enterprise”
Other associated 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 Company 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/CNY
Content of related Approved Whether more than the
Related party Current period Last Period
transaction transaction limit transaction limit (Y/N)
Weifu Precision
Goods and labor 44,657,225.89 50,000,000.00 N 43,069,065.48
Machinery
Bosch Diesel System Goods and labor 68,485,584.07 70,000,000.00 N 200,508,313.30
Weifu Environment Goods 1,515,266,186.15 1,925,000,000.00 N 1,131,818,717.21
Robert Bosch Company Goods 179,841,237.03 143,000,000.00 Y 158,733,424.37
Goods sold/labor service providing
In RMB/CNY
Related party Content of related transaction Current period Last Period
Weifu Precision Machinery Goods and labor 3,785,205.72 3,377,877.84
Bosch Diesel System Goods and labor 2,722,919,316.33 3,266,539,117.64
Weifu Environment Goods and labor 50,181,907.20 46,216,269.37
Robert Bosch Company Goods and labor 720,709,408.92 2,528,608.05
Explanation on goods sales/sold and labor service providing/receiving
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
(2)Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB/CNY
Lessee Assets type Lease income recognized in the Period Lease income recognized at last Period
Weifu Environment Workshop 2,508,057.00 2,388,626.00
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 2018 to 31 December 2018 was 2,508,057.00 Yuan
(4) Related guarantee
Nil
(5)Related party’s borrowed/lending funds
In RMB/CNY
Related party Loan amount Start date Maturity Note
Weifu Leader borrowed 5.47 million Yuan from Wuxi
Wuxi Industry Group 5,470,000.00 2018-02-13- 2019-02-12
Industry Group, which will expired on 12 February 2019.
(6)Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB/CNY
Item Current period Last Period
Remuneration of key manager 5,180,000.00 5,070,000.00
(8)Other related transactions
Item Related party 2018 2017
Payable for technical services Bosch Diesel System 1,355,480.71 1,294,739.84
Purchase of fixed assets Bosch Diesel System 19,629,922.97 2,607,798.18
Technology royalties paid etc. Robert Bosch Company 3,484,849.96 7,945,222.80
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Purchase of fixed assets Robert Bosch Company 3,576,000.00 --
Purchase of fixed assets Weifu Environment 9,858.69 --
Sales of fixed assets Weifu Environment 187,779.24 --
Interest paying Wuxi Industry Group 214,362.52 --
6. Receivable/payable items of related parties
(1)Receivable item
In RMB/CNY
Ending balance Opening balance
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Account receivable Weifu Precision Machinery 77,477.41 425,363.64
Account receivable Bosch Diesel System 420,746,170.76 615,770,490.57 72,188.07
Account receivable Robert Bosch Company 132,830,976.56
Other receivables Robert Bosch Company 12,285,081.81
Account receivable Weifu Environment 1,233,580.22 710,200.00
Other non-current
Bosch Diesel System 877,500.00
assets
Account paid in
Bosch Diesel System 1,057,272.58
advance
(2)Payable item
In RMB/CNY
Item Related party Ending book balance Opening book balance
Account payable Weifu Precision Machinery 7,941,418.36 9,737,530.74
Account payable Weifu Environment 337,307,634.70 379,374,827.01
Account payable Bosch Diesel System 24,743,403.24 44,262,749.15
Account payable Robert Bosch Company 5,170,470.70 38,202,192.76
Other accounts payable Wuxi Industry Group 5,476,678.00
Accounts received in advance Robert Bosch Company 754,552.15 579,650.36
Accounts received in advance Weifu Environment 6,514,951.87
7. Commitments of related party
Nil
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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 amount Whether guarantee
Guarantee Terminated
Guarantee provided Debit bank (in 10 thousand Starting from implemented or
received dated
Yuan) not
Weifu High-Technology Jiangbei branch of Bank
Weifu Tianli 4,500.00 2016-11-15 2021-11-10 N
Group Co., Ltd. of China in 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
2. Profit distribution
In RMB/CNY
Profit or dividend plans to distributed 1,210,740,684.00
Profit or dividend declare to distributed which have been approved 1,210,740,684.00
3. Sales return
No significant sales return has occurred after the balance sheet date
4. Other events after balance sheet date
(1) In accordance with the resolution of 4th session of 9th BOD held on 26 March 2019, the Company plans to
establish a wholly-owned subsidiary SPV Company in Denmark. Acquired the 66.00% equity of
IRDFuelCellsA/S in Denmark held by FCCTApS. Company with EUR 7.26 million by conversion (value of
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
assessment for IRD as EUR 11 million)
(2)According to the resolution passed at the 5th session of the 9th BOD of the Company held on 19 April 2019, the
Company plans to make entrusted finance management with its own unused funds up to 5 billion Yuan in 2019.
The aforesaid limit can be rolling for use to invest in finance management products with low risks.
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 session of 7th BOD: 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.
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
components, muffler and purifier etc., based on the product segment, the Company determine three reporting
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
segment as auto fuel injection system, air management system and automotive post processing system.
Accounting policy for the three reporting segments are shares the same policy state in Note III
Segment assets exclude financial assets measured by fair value and with variation reckoned into current
gains/losses, derivative instruments, dividends receivables, financial 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/CNY
Add:
investment/incom
e measured by
equity, income of
financial products
Product segment Product segment Product segment or possession and
of automobile of automotive of air disposal income,
Item Offset of segment Total
fuel injection post processing management the retained assets
system system system or gains/losses as
the financial
assets available
for sale or
possession and
disposal income
Operating
5,633,846,119.26 2,800,874,733.81 495,075,874.87 208,122,056.76 8,721,674,671.18
revenue
Operating cost 4,122,647,409.01 2,423,800,297.06 359,434,846.25 214,025,712.35 6,691,856,839.97
Total Profit 727,880,690.18 30,653,969.82 34,686,895.01 1,810,292,357.18 1,330,532.41 2,602,183,379.78
Net profit 615,703,275.72 31,529,412.98 37,157,142.45 1,782,896,685.93 991,813.61 2,466,294,703.47
Total assets 20,892,041,460.3
8,815,931,131.73 2,301,906,124.76 814,320,686.35 9,882,216,532.95 922,333,015.49
0
Total liabilities 2,780,313,471.43 1,366,966,391.62 482,134,437.91 189,343,888.01 4,440,070,412.95
7. Major transaction and events makes influence on investor’s decision
Nil
XVII. Principle notes of financial statements of parent company
1.Note receivable and account receivable
In RMB/CNY
Item Ending balance Opening balance
Notes receivable 264,264,207.30 449,209,323.02
Account receivable 742,246,990.99 1,047,012,889.92
Total 1,006,511,198.29 1,496,222,212.94
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
(1)Notes receivable
1))Category of note receivable:
In RMB/CNY
Item Ending balance Opening balance
Bank acceptance bill 248,904,207.30 449,209,323.02
Commercial acceptance bill 15,360,000.00
Total 264,264,207.30 449,209,323.02
2)Notes receivable pledge at end of the period
In RMB/CNY
Item Amount pledge at period-end
Bank acceptance bill 106,328,022.46
Total 106,328,022.46
3)Notes receivable that has endorsed or discounted at end of the period and is not yet due on balance sheet date
In RMB/CNY
Amount not cease for recognized at
Item Amount cease for recognized at period-end
period-end
Bank acceptance bill 142,341,780.45
Commercial acceptance bill 190,000.00
Total 142,531,780.45
4)The bills transferred to account receivable for the drawer failed to perform the contract
In RMB/CNY
Item Amount transfer to account receivable at period-end
Commercial acceptance bill 7,000,000.00
Total 7,000,000.00
Other explanation
Found more in 2-(1)-4) under the Note VII.
(2)Account receivable
1)Category of account receivable
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
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无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Account receivable
with single
significant amount 7,000,00 7,000,00
0.93% 100.00%
and withdrawal bad 0.00 0.00
debt provision
separately
Account receivables
1,049,4
with bad debt 745,766, 3,519,01 742,246,9 2,477,035 1,047,012,8
99.07% 0.47% 89,925. 100.00% 0.24%
provision accrual by 010.32 9.33 90.99 .41 89.92
33
credit portfolio
1,049,4
752,766, 10,519,0 742,246,9 2,477,035 1,047,012,8
Total 100.00% 1.40% 89,925. 100.00% 0.24%
010.32 19.33 90.99 .41 89.92
33
Account receivable with single significant amount and withdrawal bad debt provision separately at period end :
√Applicable □ Not applicable
In RMB/CNY
Account receivable(by Ending balance
enterprise) Account receivable Bad debt reserve Accrual ratio Accrual causes
Have difficulty in
BD bills 7,000,000.00 7,000,000.00 100.00%
collection
Total 7,000,000.00 7,000,000.00 -- --
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB/CNY
Ending balance
Account age
Account receivable Bad debt reserve Accrual ratio
Subitem of within one year
Within 6 months 559,297,293.94
6 months to one year 12,039,849.09 1,203,984.91 10.00%
Subtotal of within one year 571,337,143.03 1,203,984.91
1-2 years 1,971,945.25 394,389.05 20.00%
2-3 years 1,101,729.57 440,691.83 40.00%
Over 3 years 1,479,953.54 1,479,953.54 100.00%
Total 575,890,771.39 3,519,019.33 0.61%
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
186
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
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:
2)Bad debt provision accrual, collected or reversed
Accrual bad debt provision 8,049,045.12 Yuan; collected or reversed Yuan.
Including major amount collected or reversed in the period: Nil
3)Account receivable actually charge off in the period:
The amount charge off in the period refers to the amount from retail enterprise, an the details of each amount is
small and is not generated by related transactions.
4)Top 5 receivables at ending balance by arrears party
Total receivables collected by arrears party for the Period amounting to 622,252,082.05 Yuan, takes 82.66
percent in closing balance of the account receivables; 0 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
2. Other receivables
In RMB/CNY
Item Ending balance Opening balance
Interest receivable 188,682.78 97,627.77
Other receivables 196,660,409.35 50,174,653.16
Total 196,849,092.13 50,272,280.93
(1)Interest receivable
1)category of interest receivable
In RMB/CNY
Item Ending balance Opening balance
Entrust loans 97,627.77
Interest receivable from unified loan and return 188,682.78
Total 188,682.78 97,627.77
Significant overdue interest Nil
(2)Dividend receivable
Nil
(3)Other receivables
1)Category of other receivables
187
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other receivables
with bad debt 196,660, 196,660,4 50,395, 220,680.1 50,174,653.
100.00% 100.00% 0.44%
provision accrual by 409.35 09.35 333.34 8 16
credit portfolio
196,660, 196,660,4 50,395, 220,680.1 50,174,653.
Total 100.00% 100.00% 0.44%
409.35 09.35 333.34 8 16
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/CNY
Ending balance
Account age
Other receivables Bad debt reserve Accrual ratio
Subitem of within one year
Within 6 months 612,673.63
6 months to one year
Subtotal of within one year 612,673.63
Total 612,673.63
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
2)Bad debt provision accrual, collected or reversed
Accrual bad debt provision Yuan; collected or reversed 220,680.18 Yuan.
Including the important bad debt provision switch back or collected in the period:
3)Other receivable actually charge-off in the period:
4)Nature of other receivables
In RMB/CNY
188
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Nature Ending book balance Opening book balance
Staff loans and petty cash 605,473.63 1,438,626.00
Balance of related party in the consolidate scope 196,047,735.72 47,000,000.00
Intercourse funds of unit 1,949,507.34
Other 7,200.00 7,200.00
Total 196,660,409.35 50,395,333.34
5) Top 5 other receivables at ending balance by arrears party
In RMB/CNY
Ratio in total
Ending balance of
Enterprise Nature Ending balance Account age ending balance of
bad debt reserve
other receivables
Balance of related party in the
Weifu Leader 100,000,000.00 Within one year 50.85%
consolidate scope
Balance of related party in the
Weifu Mashan 52,047,735.72 Within 6 months 26.47%
consolidate scope
Balance of related party in the
Weifu Schmidt 24,000,000.00 Within one year 12.20%
consolidate scope
Balance of related party in the
Weifu Chang’an 20,000,000.00 Within 6 months 10.17%
consolidate scope
Staff Staff loans and petty cash 120,000.00 Within 6 months 0.06%
Total -- 196,167,735.72 -- 99.75%
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 investments
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
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
4,272,498,737.38 4,272,498,737.38 3,511,481,000.32 3,511,481,000.32
associates and
189
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
joint venture
Total 5,739,110,426.55 5,739,110,426.55 4,962,522,689.49 4,962,522,689.49
(1)Investment for subsidiary
In RMB/CNY
Impairment Ending balance of
Current
The invested entity Opening balance Current increased Ending balance accrual in the depreciation
decreased
period reserves
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/CNY
Current changes (+,-)
Ending
Investme Other Cash
balance
nt comprehe dividend
Opening Capital Other Ending of
Additional gain/loss nsive or profit Impairme
Enterprise balance reductio equity Other balance depreciati
investment recognize income announce nt accrual
n change on
d under adjustmen d to
reserves
equity t issued
I. Joint venture
Weifu
55,180,80 -438,424. 54,742,37
Electronic
0.00 98 5.02
Drive
55,180,80 -438,424. 54,742,37
Subtotal
0.00 98 5.02
II. Associated enterprise
190
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Bosch
2,503,154 1,153,838 580,955,7 3,076,037
Diesel
,814.59 ,335.18 39.65 ,410.12
System
Zhonglian
Automobi
959,036,1 366,839,7 239,400,0 1,086,475
le
93.36 62.36 00.00 ,955.72
Electronic
Co., Ltd.
Weifu
Precision 49,289,99 9,553,004 3,600,000 55,242,99
Machiner 2.37 .15 .00 6.52
y
3,511,481 1,530,231 823,955,7 4,217,756
Subtotal 0.00
,000.32 ,101.69 39.65 ,362.36
3,511,481 55,180,80 1,529,792 823,955,7 4,272,498
Total
,000.32 0.00 ,676.71 39.65 ,737.38
(3)Other explanation
Nil
4. Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main business 3,638,414,291.52 2,552,209,818.43 3,258,274,223.36 2,457,655,148.49
Other business 359,776,899.68 326,627,631.69 387,741,030.12 315,062,753.47
Total 3,998,191,191.20 2,878,837,450.12 3,646,015,253.48 2,772,717,901.96
Other explanation:
5. Investment income
In RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based on cost 82,818,400.00 978,657,310.00
Income of long-term equity investment calculated based on equity 1,529,792,676.71 1,470,504,861.61
Investment income from period of holding
3,274,260.41 3,291,000.00
the financial assets available for sale
Investment income obtained from disposal of financial assets available for 17,370,816.75 24,625,516.88
191
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
sale
Entrust financial income 303,054,961.79 215,942,650.46
Gains/losses of equity liquidation -8,261,290.60
Total 1,936,311,115.66 2,684,760,048.35
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB/CNY
Item Amount Note
Gains/losses from the disposal of non-current asset 96,162,222.57 含威孚金宁房屋土地征收处置损益
Governmental subsidy reckoned into current gains/losses (not including
the subsidy enjoyed in quota or ration according to national standards, 48,811,314.99
which are closely relevant to enterprise’s business)
Profit and loss of assets delegation on others’ investment or management 311,261,918.65
Held transaction financial asset, gains/losses of changes of fair values
from transaction financial liabilities, and investment gains from disposal Including the gains/losses of fair value
of transaction financial asset, transaction financial liabilities and financial 16,880,487.62 changes from the derivative financial
asset available for sales, exclude the effective hedging business relevant liability
with normal operations of the Company
Switch back of provision for depreciation of account receivable which
466,200.00
was singly taken depreciation test
Other non-operating income and expenditure except for the
-597,126.12
aforementioned items
The amount collected in the period
Other gain/loss qualify the definition of non-recurring gains/losses 353,111.39
while has been charged-off previous
Relocation expenses
Less: Impact on income tax 70,234,077.14
Impact on minority shareholders’ equity 21,827,350.95
Total 381,276,701.01 --
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
192
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
□ Applicable √ Not applicable
2. REO and earnings per share
Earnings per share
Weighted
Profits during report period Basic earnings per Diluted earnings per
average ROE
share (RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the Company 15.48 2.37 2.37
Net profits belong to common stock stockholders of the Company
13.02 2.00 2.00
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
193
无锡威孚高科技集团股份有限公司 2018 年年度报告全文
Section XII. Documents available for reference
I. Financial statement carrying the signatures and seals of person in charge of the company, principal of the
accounting works and person in charge of accounting organ (accounting Supervisor);
II. Original audit report seal with accounting firms and signature and seal with CPA;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website Juchao
(http://www.cninfo.com.cn) designated by CSRC in the report period;
IV. Annual report published on China Securities Journal, Securities Times and Hong Kong Commercial Daily
during the Period.
Board of Directors of
Weifu High-Technology Group Co., Ltd.
Chairman:
Chen Xuejun
23 April 2019
194
