WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. THE THIRD QUARTERLY REPORT 2017 October 2017 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Section I. Important Notes Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives 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. All directors of the Company are attended the Meeting for quarterly report deliberation. Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Work; Ou Jianbin, Person in Charge of Accounting Organization (Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 2 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets(RMB) 18,875,841,570.78 17,263,771,897.78 9.34% Net assets attributable to shareholders of 14,127,826,625.83 12,927,344,292.47 9.29% listed company (RMB) Increase/decrease in Increase/decrease in Year-begin to end of comparison with Current period comparison with same the Period year-begin to period of last year Period-end of last year Operating revenue (RMB) 1,832,997,683.30 20.36% 6,561,123,282.32 34.19% Net profit attributable to shareholders of 527,771,783.49 44.15% 1,853,693,813.05 41.54% the listed company (RMB) Net profit attributable to shareholders of the listed company after deducting 481,368,893.14 56.71% 1,689,633,181.95 48.63% non-recurring gains and losses(RMB) Net cash flow arising from operating -- -- 455,662,695.70 82.95% activities(RMB) Basic earnings per share (RMB/Share) 0.53 47.22% 1.84 41.54% Diluted earnings per share (RMB/Share) 0.53 47.22% 1.84 41.54% Weighted average ROE 3.81% 0.83% 13.67% 2.97% Items and amount of extraordinary profit (gains)/losses √Applicable □Not applicable In RMB Amount from year-begin Item Note to end of the Period Gains/losses from the disposal of non-current asset (including the write-off that accrued -2,685,459.96 for impairment of assets) Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to 26,325,334.92 enterprise’s business) Gains/losses from entrusted investment or assets management 141,966,976.58 3 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Except for effective hedge business relevant to normal operation of the Company, gains and losses arising from fair value change of tradable financial assets and tradable 24,625,516.88 financial liabilities, and investment income from disposal of tradable financial assets, tradable financial liabilities and financial assets available for sale Restoring of receivable impairment provision that tested individually 1,208,025.21 Other non-operating income and expenditure except for the aforementioned items 3,381,875.70 Less: impact on income tax 29,274,729.38 Impact on minority shareholders’ equity (post-tax) 1,486,908.85 Total 164,060,631.10 -- 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. II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period 1. Common and preferred stockholders with voting rights recover and the top ten share-holding In Share Total common shareholders at the end of Total preferred stockholders with voting rights recover 59,542 0 report period at the end of report period (if applicable) Top ten shareholders Number of share Proportion Amount of Nature of Amount of pledged/frozen Shareholders of shares restricted shareholder shares held State of held shares held Amount share WUXI INDUSTRY DEVELOPMENT State-owned 20.22% 204,059,398 GROUP CO., LTD. corporate ROBERT BOSCH GMBH Foreign corporate 14.16% 142,841,400 Hong Kong Securities Clearing Company Foreign corporate 2.75% 27,779,755 Ltd. (HKSCC) Kangjian Assets Management Company Foreign corporate 1.53% 15,409,392 –Client’s fund BBH BOS S/A FIDELITY FD - CHINA Foreign corporate 1.46% 14,759,494 4 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 FOCUS FD State-owned Central Huijin Investment Ltd. 1.27% 12,811,200 corporate RBC EMERGING MARKETS EQUITY Foreign corporate 0.86% 8,675,835 FUND Domestic Huatai Securities Co., Ltd. non-state-owned 0.70% 7,083,000 legal person CCB- Fullgoal Tianbo Innovation Theme Mix Other 0.62% 6,232,191 Securities Investment Fund National Social Security Funds-107 Other 0.46% 4,650,500 Particular about top ten shareholders with un-restrict shares held Amount of un-restrict Type of shares Shareholders common shares held Type Amount WUXI INDUSTRY DEVELOPMENT GROUP CO., LTD. 204,059,398 RMB common shares 204,059,398 RMB common shares 115,260,600 ROBERT BOSCH GMBH 142,841,400 Domestically listed 27,580,800 foreign shares Hong Kong Securities Clearing Company Ltd. (HKSCC) 27,779,755 RMB common shares 27,779,755 Kangjian Assets Management Company –Client’s fund 15,409,392 RMB common shares 15,409,392 Domestically listed BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 14,759,494 14,759,494 foreign shares Central Huijin Investment Ltd. 12,811,200 RMB common shares 12,811,200 Domestically listed RBC EMERGING MARKETS EQUITY FUND 8,675,835 8,675,835 foreign shares Huatai Securities Co., Ltd. 7,083,000 RMB common shares 7,083,000 CCB- Fullgoal Tianbo Innovation Theme Mix Securities 6,232,191 RMB common shares 6,232,191 Investment Fund National Social Security Funds-107 4,650,500 RMB common shares 4,650,500 Among the top ten shareholders, there has no associated relationship between Wuxi Industry Development Group Co., Ltd. and other Explanation on related relationship or concerted action shareholders, the first largest shareholder of the Company; and they among the abovementioned shareholders do not belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. 5 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period. 2. Total of shareholders with preferred stock held and the top ten shareholdings □Applicable √Not applicable 6 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Section III. Important events I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable (I) Changes of items of balance sheet and cause analysis: 1. Monetary fund: decreased 2520.7571 million Yuan over that of beginning of the year with 63.50% down, mainly due to more financial products are purchased in the period; 2. Account receivable: increased 407.8842 million Yuan over that of beginning of the year with 30.79% growth, mainly due to the growth of sales in the period; 3. Account paid in advance: increased 33.0038 million Yuan over that of beginning of the year with 44.58% growth, mainly because account paid in advance for materials etc. increased in the period; 4. Other receivable: increased 4.8011 million Yuan over that of beginning of the year with 81.27% growth, mainly because pretty cash for business travel at period-end increased; 5. Other current assets: increased 3173.6326 million Yuan over that of beginning of the year with 165.79% growth, mainly due to more financial products are purchased in the period; 6. Construction in progress: increased 57.4428 million Yuan over that of beginning of the year with 63.39% growth, mainly because phase II projects in industry zone increased in the period; 7. Other non-current assets: increased 97.4827 million Yuan over that of beginning of the year with 94.95% growth, mainly because the prepayment for projects and equipments increased; 8. Short-term loans: increased 85 million Yuan over that of beginning of the year with 56.67% growth, mainly because bank loans increased; 9. Wages payable: decreased 73.858 million Yuan over that of beginning of the year with 32.02% down, mainly because year-end bonuses are in the period; 10. Other payables: decreased 36.4833 million Yuan over that of beginning of the year with 37.80% down, mainly because cash deposit payable in the period decreased; 11. Deferred income tax liability: decreased 8.5665 million Yuan over that of beginning of the year with 30.95% down, mainly because available-for-sale financial assets are sold in the period and fair value declined; 12. Other comprehensive income: decreased 48.0717 million Yuan over that of beginning of the year with 33.22% down, mainly because available-for-sale financial assets has declined in fair value at period-end 7 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 (ii) Changes of items of income statement and cause analysis: 1. Operation revenue: increased 1671.75 million Yuan on a y-o-y basis with 34.19% up, mainly because products sales growth with the dramatically expansion of commercial vehicle market; 2. Operation costs: increased 1260.5592 million Yuan on a y-o-y basis with 32.85% up, mainly benefit a lot from the expansion of commercial vehicle market, main products sales of the Company growth from a year earlier; 3. Business tax and surcharge: increased 29.1091 million Yuan on a y-o-y basis with 122.37% up, mainly because since May 2016, the property tax, land holding tax, vehicle and vessel usage tax and stamp tax are adjusted to business tax and surcharge from “administration expenses”; and the sales growth; 4. Financial expenses: increased 9.3281 million Yuan on a y-o-y basis, mainly because loan interest and loss on exchange increased in the period; 5. Assets impairment loss: decreased 12.4957 million Yuan on a y-o-y basis with 99.55% down, mainly because the inventory falling price reserves are switch back for the fluctuation in raw maturely prices; 6. Investment earnings: increased 353.936 million Yuan on a y-o-y basis with 34.50% up, mainly because equity-participation enterprise has more in profit in the period; 7. Non-operation revenue: decreased 20.1643 million Yuan on a y-o-y basis with 68.64% down, mainly because the government grants related with routine activities in the period are re-classified to other incomes; 8. Non-operation expenditure: increased 2.2484 million Yuan on a y-o-y basis, mainly because net losses from fixed assets disposal and local fund payment in the period increased; 9. Total profit: increased 607.3358 million Yuan on a y-o-y basis with 42% up, mainly due to the growth of profit from main business and investment earnings in the period; 10. Income tax expense: increased 48.9326 million Yuan on a y-o-y basis with 53.37% up, mainly due to the growth of profit in the period. (III) Changes of items of cash flow statement and cause analysis: 1. Net cash flow arising from operation activities: increased 206.6004 million Yuan in-flow on a y-o-y basis with 82.95% up, mainly because sales return increased from a year earlier; 2. Net cash flow arising from investment activities: decreased 857.7232 million Yuan, mainly because financial products purchased in the period and maturity recovery declined from a year earlier. II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable 1. Wholly-owned subsidiary of the Company has investment intention on industry mergers & acquisitions fund On 31 May 2016, the Company held the 7th meeting of the 8th board of directors, to consider and approve the resolution relating to the wholly-owned subsidiary of the Company proposing to establish industry merger & acquisition funds. In order to accelerate the Company’s industrial upgrade and development speed, preserve 8 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 merger & acquisition projects, improve its comprehensive strength and realize development strategy, the Company agreed with Ping’an Securities Co., Ltd. (“Ping’an Securities’ for short) in reaching for initial cooperation plan. Weifu Auto Diesel, a wholly-owned subsidiary of the Company, proposed to cooperate with Ping’an Ronghui which was established by Ping’an Caizhi (a wholly-owned subsidiary of Ping’an Securities) to establish business merger & acquisition funds. The relevant announcement (No. 2016-015) was published on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao Information website (http://www.cninfo.com.cn). Till now, this matter is being prepared. 2. 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 8th board of directors of the Company held the 9th meeting to 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 Ningbo Weifu Tianli Supercharging Technique Co., Ltd. on 30 December 2016, Weifu Tianli was served with the notice of acceptance from the National Middle and Small Enterprise Stock Transfer System Company Limited (GP2016120120). The relevant announcements (No.: 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). At the current stage, this matter is in the progress of consideration and approval. 3. Parts of the joint-stock enterprise’s equity held by the Company freeze On March 6, 2017, the company received the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 from Shenzhen Intermediate People's Court about the dispute case that the plaintiff applicant China Cinda Asset Management Co., Ltd. Shenzhen Branch (hereinafter referred to as “Cinda Company”) appealed the respondent Weifu High Technology and other seven respondents and the shareholders of the third party Hejun Company damaged the interests of corporate creditors, which adopted the mandatory measures to freeze the assets with value of RMB 217 million under the name of the Company and other seven respondents and Hejun Company. Freeze 4.71 million shares of Miracle Logistics and 15.3 million shares of SDEC held by the company. The relevant announcements (No.: 2017-002) were published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn). This litigation will not affect the company’s daily operating activities for the time being. The company has engaged professional lawyers to strive to properly handle and resolve the litigation and the frozen stock equity as soon as possible through normal and legal approaches and protect the legitimate rights and interests of the company according to law. (1) By the company’s application for reconsideration, Shenzhen Intermediate People's Court deemed the total assets that Cinda Company applied for preservation to be RMB 217,027,697.23. The total value of 15.3 million shares of SDEC Stock and 4.71 million shares of Miracle Logistics held by the company has exceeded the total assets that Cinda Company applied for preservation, therefore, 3,560,898 shares of SDEC Stock held by the company was unfrozen. Up to the end of the reporting period, the company’s frozen assets were 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 fruits. At present, this litigation is in the first instance (First trial on 24 September 9 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 2017, and futher session to be advised from the Court). (2) The company has applied to Futian People's Court of Shenzhen for compulsory liquidation with Hejun Company, the Court placed on file and will open a court session on 27 October 2017. 4. Wholly-owned subsidiary consolidation by merger On 25 July 2017, the first extraordinary shareholders general meeting of 2017 held for deliberated and approved the proposal of a w holly-owned subsidiary consolidation by merger. According to the operation development requirments, and furhter optimized the management structure and governance structure, to simplify internal accounting, reducing management costs, integrated business resources and improve operation efficiency, the Company consolidated Wuxi Weifu Automative Diesel System Co., Ltd. by merger. The relevant announcements (No.: 2017-017 and No.: 2017-020) were published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn). Relevant works still in progress. Overview Disclosure date Query index for interim notice Notice of Planning of Setting Up Industrial Merger (Notice No. 2016-015) Published on Juchao Website 2016-06-02 & Acquisition Fund by Wholly-owned Subsidiary (www.cninfo.com.cn) (Notice No. 2016-023) Published on Juchao Website Proposed application for listing in the national 2016-10-27 (www.cninfo.com.cn) middle and small enterprises stock transfer system by the controlling subsidiary Weifu Tianli (Notice No. 2017-001) Published on Juchao Website 2017-01-07 (www.cninfo.com.cn) Parts of the joint-stock enterprise’s equity held by (Notice No. 2017-002) Published on Juchao Website 2017-03-08 the Company freeze (www.cninfo.com.cn) (Notice No. 2017-017) Published on Juchao Website 2017-07-06 (www.cninfo.com.cn) Wholly-owned subsidiary consolidation by merger (Notice No. 2017-020) Published on Juchao Website 2017-07-26 (www.cninfo.com.cn) III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period □ Applicable √ Not applicable There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Estimation of operation performance for year of 2017 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason □Applicable √Not applicable 10 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 V. Particular about security investment √ Applicable □Not applicable In RMB Book Changes Curre Profit Account value at in fair Book Variety Short Cumulativ nt and loss Code of Initial ing the value of Current value at Sourc of form of e fair value purch in the Accountin securiti investm measure beginni the sales the end e of securitie securitie ent cost changes in ase Reporti g subject es ment ng of current amount of the stock s s equity amou ng model the profit period nt Period period and loss Domesti Financial Measure c and 199,208 293,694 -38,709, 63,041,737 53,860, -38,173, 202,878 assets Own 600841 SDEC d by fair foreign ,000.00 ,000.00 000.00 .51 000.00 500.00 ,000.00 available funds value stocks for sales Domesti Financial Miracle Measure c and 69,331, 68,153, 6,499,8 33,609,382 6,735,3 74,653, assets Own 002009 Logistic d by fair foreign 500.00 700.00 00.00 .50 00.00 500.00 available funds s value stocks for sales 268,539 361,847 -32,209, 96,651,120 53,860, -31,438, 277,531 Total -- 0.00 -- -- ,500.00 ,700.00 200.00 .01 000.00 200.00 ,500.00 Disclosure date of 2012-03-24 securities investment 2013-06-04 approval from the Board VI. Particulars about derivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form of receiving research, communication and interview in the report period √ Applicable □Not applicable Type of Date Method Index for the interview and research investors Form 1 July to 30 Written The Company answered 59 questions for investors online through the investor relations Other September 2017 inquiry interactive platform(http://irm.p5w.net/dqhd/sichuan/) Telephone Form 1 July to 30 Basic condition of the Company and views on market in 2017, communication with communicat Other September 2017 investors by telephone more than 50 ion 11 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 VIII. External security against the rules □ Applicable √ Not applicable The Company has no external security against the rules in the Period IX. Controlling shareholders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company. X. Fulfill the precise social responsibility for poverty alleviation The Company has no precise social responsibility for poverty alleviation in the period and has no follow-up plan either. 12 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by Weifu High-Technology Group Co., Ltd. 2017-09-30 In RMB Item Balance at period-end Balance at period-begin Current assets: Monetary funds 1,448,916,925.29 3,969,674,068.56 Settlement provisions Capital lent Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable 1,386,163,271.99 1,279,844,777.10 Accounts receivable 1,732,587,749.22 1,324,703,543.17 Accounts paid in advance 107,034,320.50 74,030,486.38 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable 1,744,791.66 2,487,527.65 Dividend receivable 646,368.57 Other receivables 10,708,939.39 5,907,873.92 Purchase restituted finance asset Inventories 1,289,840,959.12 1,349,444,535.25 Divided into assets held for sale Non-current asset due within one year Other current assets 5,087,858,469.64 1,914,225,879.67 Total current assets 11,065,501,795.38 9,920,318,691.70 Non-current assets: Loans and payments on behalf Finance asset available for sales 699,297,769.00 695,235,461.00 13 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Held-to-maturity investment Long-term account receivable Long-term equity investment 3,757,901,693.48 3,421,030,760.78 Investment property 23,936,481.73 25,113,472.54 Fixed assets 2,427,099,320.35 2,447,840,035.34 Construction in progress 148,063,948.85 90,621,102.20 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 336,012,203.11 347,206,518.76 Expense on Research and Development Goodwill 1,784,086.79 1,784,086.79 Long-term expenses to be apportioned 14,713,419.10 1,753,413.10 Deferred income tax asset 201,376,466.44 210,196,714.45 Other non-current asset 200,154,386.55 102,671,641.12 Total non-current asset 7,810,339,775.40 7,343,453,206.08 Total assets 18,875,841,570.78 17,263,771,897.78 Current liabilities: Short-term loans 235,000,000.00 150,000,000.00 Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable 832,762,334.61 837,045,962.78 Accounts payable 2,130,839,879.40 1,729,250,355.93 Accounts received in advance 47,499,789.35 42,983,352.84 Selling financial asset of repurchase Commission charge and commission payable Wage payable 156,814,306.69 230,672,269.58 Taxes payable 73,304,286.07 62,634,922.88 Interest payable 276,337.03 437,938.27 14 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Dividend payable Other accounts payable 60,031,174.25 96,514,485.59 Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 3,536,528,107.40 3,149,539,287.87 Non-current liabilities: Long-term loans 57,500,000.00 60,000,000.00 Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable 17,496,363.00 17,835,454.00 Long-term wages payable 137,198,200.42 112,815,704.51 Special accounts payable 18,265,082.11 18,265,082.11 Projected liabilities Deferred income 462,854,629.41 479,211,845.88 Deferred income tax liabilities 19,107,615.64 27,674,132.89 Other non-current liabilities Total non-current liabilities 712,421,890.58 715,802,219.39 Total liabilities 4,248,949,997.98 3,865,341,507.26 Owner’s equity: Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 3,417,841,402.89 3,417,841,402.89 Less: Inventory shares Other comprehensive income 96,651,120.01 144,722,827.51 Reasonable reserve 319,575.00 89,005.19 Surplus public reserve 510,100,496.00 510,100,496.00 15 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Provision of general risk Retained profit 9,093,963,461.93 7,845,639,990.88 Total owner’s equity attributable to parent company 14,127,826,625.83 12,927,344,292.47 Minority interests 499,064,946.97 471,086,098.05 Total owner’s equity 14,626,891,572.80 13,398,430,390.52 Total liabilities and owner’s equity 18,875,841,570.78 17,263,771,897.78 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 Balance at period-end Balance at period-begin Current assets: Monetary funds 900,404,228.19 2,143,816,269.01 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable 435,016,065.93 216,516,806.40 Accounts receivable 754,169,871.14 611,594,846.92 Account paid in advance 60,123,043.03 34,805,212.41 Interest receivable Dividends receivable 646,368.57 Other receivables 51,193,999.46 46,349,571.47 Inventories 254,877,367.19 202,839,001.66 Divided into assets held for sale Non-current assets maturing within one year Other current assets 4,955,447,224.58 1,945,446,935.23 Total current assets 7,411,878,168.09 5,201,368,643.10 Non-current assets: Available-for-sale financial assets 623,357,769.00 619,295,461.00 Held-to-maturity investments Long-term receivables Long-term equity investments 4,870,496,252.42 4,591,005,651.65 Investment property Fixed assets 1,372,282,427.42 1,438,192,853.38 16 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Construction in progress 73,820,083.45 36,142,328.79 Project materials Disposal of fixed assets Productive biological assets Oil and natural gas assets Intangible assets 186,367,037.62 192,448,576.72 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets 90,515,237.26 96,943,564.13 Other non-current assets 84,334,014.68 31,747,194.01 Total non-current assets 7,301,172,821.85 7,005,775,629.68 Total assets 14,713,050,989.94 12,207,144,272.78 Current liabilities: Short-term borrowings 80,000,000.00 80,000,000.00 Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable 384,167,492.72 171,760,000.00 Accounts payable 713,082,500.33 595,558,830.63 Accounts received in advance 9,842,500.23 732,252.09 Wage payable 66,856,082.03 119,456,739.08 Taxes payable 25,727,184.22 28,055,629.04 Interest payable 84,400.00 88,933.33 Dividend payable Other accounts payable 531,925,052.78 14,190,407.16 Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 1,811,685,212.31 1,009,842,791.33 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock 17 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Perpetual capital securities Long-term account payable Long-term wages payable 125,622,495.91 101,240,000.00 Special accounts payable Projected liabilities Deferred income 412,979,860.50 432,695,399.27 Deferred income tax liabilities 17,056,079.99 25,539,322.49 Other non-current liabilities Total non-current liabilities 555,658,436.40 559,474,721.76 Total liabilities 2,367,343,648.71 1,569,317,513.09 Owners’ equity: Share capita 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 3,448,408,786.39 3,448,408,786.39 Less: Inventory shares Other comprehensive income 96,651,120.01 144,722,827.51 Reasonable reserve Surplus reserve 510,100,496.00 510,100,496.00 Retained profit 7,281,596,368.83 5,525,644,079.79 Total owner’s equity 12,345,707,341.23 10,637,826,759.69 Total liabilities and owner’s equity 14,713,050,989.94 12,207,144,272.78 3. Consolidated Profit Statement (the period) In RMB Item Current Period Last Period I. Total operating income 1,832,997,683.30 1,522,896,852.89 Including: Operating income 1,832,997,683.30 1,522,896,852.89 Interest income Insurance gained Commission charge and commission income II. Total operating cost 1,676,428,752.48 1,441,957,624.68 Including: Operating cost 1,361,927,902.42 1,204,377,668.92 18 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Operating tax and extras 15,034,754.03 7,552,608.70 Sales expenses 47,008,081.61 40,328,425.30 Administration expenses 237,268,016.75 175,813,718.30 Financial expenses 3,837,009.05 -893,521.51 Losses of devaluation of asset 11,352,988.62 14,778,724.97 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 424,259,662.16 313,808,978.06 Including: Investment income on affiliated company and joint 376,259,036.41 245,845,647.59 venture Exchange income (Loss is listed with “-”) Other income 6,821,209.19 III. Operating profit (Loss is listed with “-”) 587,649,802.17 394,748,206.27 Add: Non-operating income 6,192,365.09 10,629,017.31 Including: Disposal gains of non-current asset 922,986.12 290,303.78 Less: Non-operating expense 2,710,733.23 2,251,691.01 Including: Disposal loss of non-current asset 2,307,625.76 725,836.85 IV. Total Profit (Loss is listed with “-”) 591,131,434.03 403,125,532.57 Less: Income tax expense 46,584,408.67 23,363,351.40 V. Net profit (Net loss is listed with “-”) 544,547,025.36 379,762,181.17 Net profit attributable to owner’s of parent company 527,771,783.49 366,126,109.76 Minority shareholders’ gains and losses 16,775,241.87 13,636,071.41 VI. Net after-tax of other comprehensive income -8,274,495.00 -9,906,410.00 Net after-tax of other comprehensive income attributable to owners of -8,274,495.00 -9,906,410.00 parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 19 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -8,274,495.00 -9,906,410.00 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -8,274,495.00 -9,906,410.00 available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 536,272,530.36 369,855,771.17 Total comprehensive income attributable to owners of parent Company 519,497,288.49 356,219,699.76 Total comprehensive income attributable to minority shareholders 16,775,241.87 13,636,071.41 VIII. Earnings per share: (i) Basic earnings per share 0.53 0.36 (ii) Diluted earnings per share 0.53 0.36 As for the enterprise combined under the same control, net profit achieved by combined party before merger counted as Yuan, while achieved Yuan by combined party 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 (the period) In RMB Item Current Period Last Period I. Operating income 712,342,649.17 474,079,480.63 Less: Operating cost 613,286,795.67 413,715,796.32 Operating tax and extras 6,066,825.07 2,655,313.84 Sales expenses 8,369,245.05 8,603,583.95 Administration expenses 86,107,338.35 68,735,038.35 20 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Financial expenses 1,185,230.22 1,222,659.04 Losses of devaluation of asset -2,272,399.92 -957,854.77 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 421,416,072.18 319,576,980.34 Including: Investment income on affiliated company and joint 347,381,158.90 226,291,093.71 venture Other income 6,100,208.89 II. Operating profit (Loss is listed with “-”) 427,115,895.80 299,681,924.24 Add: Non-operating income 1,419,290.62 9,206,021.83 Including: Disposal gains of non-current asset 229,518.62 252,592.63 Less: Non-operating expense 939,056.46 953,656.79 Including: Disposal loss of non-current asset 939,053.46 401,351.45 III. Total Profit (Loss is listed with “-”) 427,596,129.96 307,934,289.28 Less: Income tax expense 6,904,928.63 6,062,366.15 IV. Net profit (Net loss is listed with “-”) 420,691,201.33 301,871,923.13 V. Net after-tax of other comprehensive income -8,274,495.00 -9,906,410.00 (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -8,274,495.00 -9,906,410.00 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -8,274,495.00 -9,906,410.00 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 21 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 VI. Total comprehensive income 412,416,706.33 291,965,513.13 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 5. Consolidated Profit Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Total operating income 6,561,123,282.32 4,889,373,305.38 Including: Operating income 6,561,123,282.32 4,889,373,305.38 Interest income Insurance gained Commission charge and commission income II. Total operating cost 5,912,101,548.97 4,493,734,811.55 Including: Operating cost 5,098,218,841.28 3,837,659,652.17 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense tax and extras 52,897,036.51 23,787,955.26 Sales expenses 118,567,344.27 133,127,794.55 Administration expenses 636,836,751.48 490,410,253.22 Financial expenses 5,525,060.37 -3,803,012.94 Losses of devaluation of asset 56,515.06 12,552,169.29 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 1,379,697,577.52 1,025,761,541.23 Including: Investment income on affiliated company and joint 1,209,824,557.05 838,948,109.61 venture Exchange income (Loss is listed with “-”) Other income 22,429,216.47 III. Operating profit (Loss is listed with “-”) 2,051,148,527.34 1,421,400,035.06 22 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Add: Non-operating income 9,212,138.42 29,376,400.04 Including: Disposal gains of non-current asset 1,158,179.97 1,015,076.57 Less: Non-operating expense 6,835,932.34 4,587,513.03 Including: Disposal loss of non-current asset 3,843,639.93 2,187,168.06 IV. Total Profit (Loss is listed with “-”) 2,053,524,733.42 1,446,188,922.07 Less: Income tax expense 140,610,342.03 91,677,778.58 V. Net profit (Net loss is listed with “-”) 1,912,914,391.39 1,354,511,143.49 Net profit attributable to owner’s of parent company 1,853,693,813.05 1,309,694,645.48 Minority shareholders’ gains and losses 59,220,578.34 44,816,498.01 VI. Net after-tax of other comprehensive income -48,071,707.50 -66,113,998.74 Net after-tax of other comprehensive income attributable to owners of -48,071,707.50 -66,113,998.74 parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -48,071,707.50 -66,113,998.74 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -48,071,707.50 -66,113,998.74 available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 1,864,842,683.89 1,288,397,144.75 Total comprehensive income attributable to owners of parent Company 1,805,622,105.55 1,243,580,646.74 Total comprehensive income attributable to minority shareholders 59,220,578.34 44,816,498.01 23 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 VIII. Earnings per share: (i) Basic earnings per share 1.84 1.30 (ii) Diluted earnings per share 1.84 1.30 As for the enterprise combined under the same control, net profit achieved by combined party before merger counted as Yuan, while achieved Yuan by combined party last period 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Operating income 2,338,823,064.88 1,458,149,449.43 Less: Operating cost 1,881,909,457.25 1,222,059,868.86 Operating tax and extras 20,893,583.83 6,544,108.26 Sales expenses 22,160,338.44 28,842,600.88 Administration expenses 270,265,074.80 195,062,421.69 Financial expenses 838,252.35 -4,944,536.93 Losses of devaluation of asset -2,224,005.22 -886,916.97 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 2,252,183,094.93 974,372,189.56 Including: Investment income on affiliated company and joint 1,114,690,924.54 763,408,174.38 venture Other income 20,015,538.77 II. Operating profit (Loss is listed with “-”) 2,417,178,997.13 985,844,093.20 Add: Non-operating income 1,709,194.68 23,827,626.61 Including: Disposal gains of non-current asset 275,163.03 714,408.73 Less: Non-operating expense 3,216,523.26 1,762,101.81 Including: Disposal loss of non-current asset 2,187,597.79 993,332.06 III. Total Profit (Loss is listed with “-”) 2,415,671,668.55 1,007,909,618.00 Less: Income tax expense 54,349,037.51 26,820,648.10 IV. Net profit (Net loss is listed with “-”) 2,361,322,631.04 981,088,969.90 V. Net after-tax of other comprehensive income -48,071,707.50 -66,113,998.74 (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified 24 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -48,071,707.50 -66,113,998.74 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -48,071,707.50 -66,113,998.74 available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other VI. Total comprehensive income 2,313,250,923.54 914,974,971.16 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 7. Consolidated Cash Flow Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 5,415,498,593.27 4,075,857,122.17 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 25 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Write-back of tax received 33,394,041.93 27,180,302.24 Other cash received concerning operating activities 27,368,269.33 19,487,047.28 Subtotal of cash inflow arising from operating activities 5,476,260,904.53 4,122,524,471.69 Cash paid for purchasing commodities and receiving labor service 3,359,808,178.28 2,598,412,659.75 Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 882,444,354.25 712,855,117.51 Taxes paid 486,146,192.25 323,616,906.66 Other cash paid concerning operating activities 292,199,484.05 238,577,470.62 Subtotal of cash outflow arising from operating activities 5,020,598,208.83 3,873,462,154.54 Net cash flows arising from operating activities 455,662,695.70 249,062,317.15 II. Cash flows arising from investing activities: Cash received from recovering investment 5,399,636,226.27 5,910,661,906.70 Cash received from investment income 1,004,170,730.84 1,148,454,597.68 Net cash received from disposal of fixed, intangible and other long-term 55,482,015.56 63,817,144.02 assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities 30,296,467.00 Subtotal of cash inflow from investing activities 6,459,288,972.67 7,153,230,115.40 Cash paid for purchasing fixed, intangible and other long-term assets 318,317,189.06 281,959,826.10 Cash paid for investment 8,581,292,764.21 8,453,810,985.03 Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities 57,116.41 Subtotal of cash outflow from investing activities 8,899,609,953.27 8,735,827,927.54 Net cash flows arising from investing activities -2,440,320,980.60 -1,582,597,812.14 III. Cash flows arising from financing activities Cash received from absorbing investment 9,520,000.00 12,800,000.00 Including: Cash received from absorbing minority shareholders’ 9,520,000.00 12,800,000.00 investment by subsidiaries Cash received from loans 235,000,000.00 254,187,030.29 Cash received from issuing bonds 26 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Other cash received concerning financing activities Subtotal of cash inflow from financing activities 244,520,000.00 266,987,030.29 Cash paid for settling debts 152,500,000.00 457,000,000.00 Cash paid for dividend and profit distributing or interest paying 652,875,764.59 481,006,730.85 Including: Dividend and profit of minority shareholder paid by 39,650,290.00 24,803,800.00 subsidiaries Other cash paid concerning financing activities 1,388,802.28 339,091.00 Subtotal of cash outflow from financing activities 806,764,566.87 938,345,821.85 Net cash flows arising from financing activities -562,244,566.87 -671,358,791.56 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -6,474,769.99 V. Net increase of cash and cash equivalents -2,553,377,621.76 -2,004,894,286.55 Add: Balance of cash and cash equivalents at the period -begin 3,795,223,678.11 3,040,315,198.85 VI. Balance of cash and cash equivalents at the period -end 1,241,846,056.35 1,035,420,912.30 8. Cash Flow Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 1,825,933,447.86 1,165,621,926.61 Write-back of tax received Other cash received concerning operating activities 528,137,019.77 1,145,466,206.68 Subtotal of cash inflow arising from operating activities 2,354,070,467.63 2,311,088,133.29 Cash paid for purchasing commodities and receiving labor service 965,168,241.07 609,336,635.01 Cash paid to/for staff and workers 398,847,473.24 290,989,747.70 Taxes paid 192,013,974.30 96,209,325.93 Other cash paid concerning operating activities 200,144,016.79 64,011,248.17 Subtotal of cash outflow arising from operating activities 1,756,173,705.40 1,060,546,956.81 Net cash flows arising from operating activities 597,896,762.23 1,250,541,176.48 II. Cash flows arising from investing activities: Cash received from recovering investment 5,144,601,492.00 5,639,000,000.00 Cash received from investment income 1,965,339,364.77 1,110,427,341.08 Net cash received from disposal of fixed, intangible and other long-term 52,380,871.19 62,137,135.26 assets Net cash received from disposal of subsidiaries and other units 2,410,502.57 27 无锡威孚高科技集团股份有限公司 2017 年第三季度报告全文 Other cash received concerning investing activities 25,301,600.00 Subtotal of cash inflow from investing activities 7,164,732,230.53 6,836,866,076.34 Cash paid for purchasing fixed, intangible and other long-term assets 125,206,789.75 162,090,979.43 Cash paid for investment 8,266,409,258.63 8,314,900,000.00 Net cash received from subsidiaries and other units Other cash paid concerning investing activities 57,116.41 Subtotal of cash outflow from investing activities 8,391,616,048.38 8,477,048,095.84 Net cash flows arising from investing activities -1,226,883,817.85 -1,640,182,019.50 III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans 80,000,000.00 180,000,000.00 Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing activities 80,000,000.00 180,000,000.00 Cash paid for settling debts 80,000,000.00 330,000,000.00 Cash paid for dividend and profit distributing or interest paying 607,870,230.87 453,545,994.41 Other cash paid concerning financing activities Subtotal of cash outflow from financing activities 687,870,230.87 783,545,994.41 Net cash flows arising from financing activities -607,870,230.87 -603,545,994.41 IV. Influence on cash and cash equivalents due to fluctuation in exchange -6,474,769.99 rate V. Net increase of cash and cash equivalents -1,243,332,056.48 -993,186,837.43 Add: Balance of cash and cash equivalents at the period -begin 2,143,377,059.99 1,734,531,427.66 VI. Balance of cash and cash equivalents at the period -end 900,045,003.51 741,344,590.23 II. Audit report Whether the 3rd quarterly report has been audited or not □Yes √ No The 3rd quarterly report of the Company has not been audited. Board of Directors of Weifu High-Technology Group Co., Ltd. Chairman: Chen Xuejun 26 October 2017 28