无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Weifu High-Technology Group Co., Ltd.
Semi-Annual Financial Report 2019
August 2019
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2019-6-30
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary funds 2,689,698,577.33 2,616,321,740.73
Settlement provisions
Capital lent
Tradable financial assets 4,409,469,555.43
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Note receivable 1,492,394,221.35 1,148,107,603.68
Account receivable 2,319,307,654.58 1,919,793,266.91
Receivable financing
Accounts paid in advance 130,898,819.37 94,651,431.31
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 597,269,619.06 84,582,246.16
Including: Interest receivable 674,104.16 1,842,437.50
Dividend receivable 536,162,445.67
Buying back the sale of financial assets
Inventories 1,427,136,271.99 1,438,528,714.59
Contractual assets
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Assets held for sale
Non-current asset due within one year
Other current assets 59,554,852.86 4,632,137,600.26
Total current assets 13,125,729,571.97 11,934,122,603.64
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales 255,975,176.91
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 4,792,747,311.47 4,976,773,946.74
Investment in other equity instrument 180,940,000.00
Other non-current financial assets 368,800,000.00
Investment real estate 21,131,775.19 21,906,134.52
Fixed assets 2,680,884,221.89 2,707,374,678.61
Construction in progress 259,557,105.61 166,414,542.18
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 320,409,700.92 324,892,822.75
Expense on Research and Development
Goodwill 55,591,347.00 1,784,086.79
Long-term expenses to be apportioned 18,905,250.00 16,637,652.31
Deferred income tax asset 214,153,685.24 234,697,139.58
Other non-current asset 295,639,334.53 251,462,676.27
Total non-current asset 9,208,759,731.85 8,957,918,856.66
Total assets 22,334,489,303.82 20,892,041,460.30
Current liabilities:
Short-term loans 321,055,399.28 298,928,213.94
Loan from central bank
Capital borrowed
Transactional financial liability
Financial liability measured by fair value and with variation
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
reckoned into current gains/losses
Derivative financial liability 490,329.13
Note payable 1,591,019,357.36 1,018,367,533.74
Account payable 2,492,584,058.39 2,047,336,834.66
Accounts received in advance 53,037,864.67 41,329,857.80
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 235,601,920.23 312,113,178.24
Taxes payable 73,450,696.65 74,271,613.92
Other account payable 430,239,321.47 64,448,723.52
Including: Interest payable 752,404.25 517,469.08
Dividend payable 369,352,725.60
Commission charge and commission payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due within one year 15,000,000.00 15,000,000.00
Other current liabilities
Total current liabilities 5,211,988,618.05 3,872,286,284.95
Non-current liabilities:
Insurance contract reserve
Long-term loans 22,500,000.00 30,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 35,083,263.11 35,422,354.11
Long-term wages payable 74,679,175.36 74,679,175.36
Accrual liability
Deferred income 415,418,074.89 425,769,854.13
Deferred income tax liabilities 6,386,620.12 1,912,744.40
Other non-current liabilities
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Total non-current liabilities 554,067,133.48 567,784,128.00
Total liabilities 5,766,055,751.53 4,440,070,412.95
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 3,416,022,795.14 3,416,022,795.14
Less: Inventory shares
Other comprehensive income 261,591.54 -19,809,442.95
Reasonable reserve 2,535,660.69 1,618,490.50
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 11,059,205,014.71 10,996,945,870.13
Total owner’ s equity attributable to parent company 15,997,076,128.08 15,913,828,778.82
Minority interests 571,357,424.21 538,142,268.53
Total owner’ s equity 16,568,433,552.29 16,451,971,047.35
Total liabilities and owner’ s equity 22,334,489,303.82 20,892,041,460.30
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 2019-6-30 2018-12-31
Current assets:
Monetary funds 2,110,649,144.04 1,922,408,227.00
Transactional financial assets 4,109,469,555.43
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Note receivable 202,038,803.99 264,264,207.30
Account receivable 766,756,661.80 742,246,990.99
Receivable financing
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Accounts paid in advance 84,477,497.47 59,028,927.25
Other account receivable 712,698,500.83 196,849,092.13
Including: Interest receivable 30,570.83 188,682.78
Dividend receivable 517,216,193.24
Inventories 436,366,950.75 492,054,274.67
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 26,252,619.45 4,576,688,553.49
Total current assets 8,448,709,733.76 8,253,540,272.83
Non-current assets:
Debt investment
Available-for-sale financial assets 180,035,176.91
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 5,637,526,395.41 5,739,110,426.55
Investment in other equity instrument 105,000,000.00
Other non-current financial assets 368,800,000.00
Investment real estate
Fixed assets 1,497,920,785.67 1,534,109,106.80
Construction in progress 163,098,662.24 78,673,300.59
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 186,309,565.33 188,101,655.94
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 119,906,203.71 140,286,756.70
Other non-current assets 224,004,875.34 184,208,090.40
Total non-current assets 8,302,566,487.70 8,044,524,513.89
Total assets 16,751,276,221.46 16,298,064,786.72
Current liabilities
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Short-term borrowings 92,000,000.00 112,000,000.00
Transactional financial liability
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable 332,383,071.60 330,545,052.37
Account payable 953,466,419.74 823,693,469.51
Accounts received in advance 3,446,051.71 6,639,554.63
Contractual liability
Wage payable 159,004,259.87 200,205,508.25
Taxes payable 58,256,869.09 39,193,425.15
Other accounts payable 411,692,830.03 12,142,596.68
Including: Interest payable 283,127.78 149,966.66
Dividend payable 369,352,725.60
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 2,010,249,502.04 1,524,419,606.59
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 63,962,762.93 63,962,762.93
Accrued liabilities
Deferred income 370,269,926.04 381,609,056.40
Deferred income tax liabilities 4,529,392.20
Other non-current liabilities
Total non-current liabilities 438,762,081.17 445,571,819.33
Total liabilities 2,449,011,583.21 1,969,991,425.92
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 3,488,221,286.39 3,488,221,286.39
Less: Inventory shares
Other comprehensive income -19,809,442.95
Special reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 9,294,992,285.86 9,340,610,451.36
Total owner’s equity 14,302,264,638.25 14,328,073,360.80
Total liabilities and owner’s equity 16,751,276,221.46 16,298,064,786.72
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Total operating income 4,403,444,346.05 4,960,801,890.99
Including: Operating income 4,403,444,346.05 4,960,801,890.99
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 4,005,776,550.51 4,446,144,672.35
Including: Operating cost 3,405,386,504.44 3,889,590,289.69
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 34,534,571.66 38,000,352.40
Sales expense 104,270,647.40 106,347,559.85
Administrative expense 310,909,980.43 236,539,410.63
R&D expense 180,167,642.16 177,443,968.15
Financial expense -29,492,795.58 -1,776,908.37
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Including: Interest expenses 9,264,648.42 9,075,955.05
Interest income 48,416,919.83 11,684,097.62
Add: other income 17,632,117.95 14,032,459.71
Investment income (Loss is listed with “-”) 888,216,680.48 1,149,033,168.39
Including: Investment income on affiliated company and joint
790,465,131.05 968,640,145.91
venture
The termination of income recognition for financial assets
measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) 30,686,277.13
Loss of credit impairment (Loss is listed with “-”) -6,237,790.75
Losses of devaluation of asset (Loss is listed with “-”) -1,500,885.27 10,087.38
Income from assets disposal (Loss is listed with “-”) 5,107,848.45 1,588,185.36
III. Operating profit (Loss is listed with “-”) 1,331,572,043.53 1,679,321,119.48
Add: Non-operating income 27,544,757.26 3,881,128.87
Less: Non-operating expense 2,631,453.02 2,327,872.38
IV. Total profit (Loss is listed with “-”) 1,356,485,347.77 1,680,874,375.97
Less: Income tax expense 81,382,654.54 102,927,297.96
V. Net profit (Net loss is listed with “-”) 1,275,102,693.23 1,577,947,078.01
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 1,275,102,693.23 1,577,947,078.01
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 1,256,661,577.09 1,545,242,704.92
2.Minority shareholders’ gains and losses 18,441,116.14 32,704,373.09
VI. Net after-tax of other comprehensive income 271,537.20 -58,302,580.35
Net after-tax of other comprehensive income attributable to owners
261,591.54 -58,302,580.35
of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
5. Other
(ii) Other comprehensive income items which will be reclassified
261,591.54 -58,302,580.35
subsequently to profit or loss
1.Other comprehensive income under equity method that can
transfer to gain/loss
2.Change of fair value of other debt investment
3.gain/loss of fair value changes for available-for-sale financial
-58,302,580.35
assets
4.Amount of financial assets re-classify to other comprehensive
income
5.Gain/loss of held-to-maturity investments that re-classify to
available-for-sale financial asset
6.Credit impairment provision for other debt investment
7.Cash flow hedging reserve
8.Translation differences arising on translation of foreign currency
261,591.54
financial statements
9.Other
Net after-tax of other comprehensive income attributable to minority
9,945.66
shareholders
VII. Total comprehensive income 1,275,374,230.43 1,519,644,497.66
Total comprehensive income attributable to owners of parent
1,256,923,168.63 1,486,940,124.57
Company
Total comprehensive income attributable to minority shareholders 18,451,061.80 32,704,373.09
VIII. Earnings per share:
(i) Basic earnings per share 1.25 1.53
(ii) Diluted earnings per share 1.25 1.53
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Operating income 2,092,474,460.24 2,315,142,655.13
Less: Operating cost 1,471,971,514.70 1,698,516,522.90
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Taxes and surcharge 17,510,903.97 20,760,852.64
Sales expenses 15,320,342.43 17,030,807.96
Administration expenses 211,000,027.34 145,983,978.35
R&D expenses 75,873,810.90 70,275,784.76
Financial expenses -41,092,188.59 -5,330,079.95
Including: interest expenses 3,597,363.92 3,589,658.32
Interest income 44,742,417.24 9,047,393.86
Add: other income 11,683,224.30 11,813,783.39
Investment income (Loss is listed with “-”) 840,215,361.66 1,137,350,229.02
Including: Investment income on affiliated Company and
742,463,812.23 894,788,126.54
joint venture
The termination of income recognition for financial assets
measured by amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) 30,195,948.00
Loss of credit impairment (Loss is listed with “-”) -1,901,377.70
Losses of devaluation of asset (Loss is listed with “-”) -24,294.39 -468,622.39
Income on disposal of assets (Loss is listed with “-”) 1,844,051.48 698,843.73
II. Operating profit (Loss is listed with “-”) 1,223,902,962.84 1,517,299,022.22
Add: Non-operating income 15,034.36 26,550.35
Less: Non-operating expense 1,196,252.91 989,892.95
III. Total Profit (Loss is listed with “-”) 1,222,721,744.29 1,516,335,679.62
Less: Income tax 73,937,477.28 82,844,629.16
IV. Net profit (Net loss is listed with “-”) 1,148,784,267.01 1,433,491,050.46
(i)continuous operating net profit (net loss listed with ‘-”) 1,148,784,267.01 1,433,491,050.46
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income -58,302,580.35
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
5. Other
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(II) Other comprehensive income items which will be reclassified
-58,302,580.35
subsequently to profit or loss
1.Other comprehensive income under equity method that can
transfer to gain/loss
2.Change of fair value of other debt investment
3.gain/loss of fair value changes for available-for-sale financial
-58,302,580.35
assets
4.Amount of financial assets re-classify to other comprehensive
income
5.Gain/loss of held-to-maturity investments that re-classify to
available-for-sale financial asset
6.Credit impairment provision for other debt investment
7.Cash flow hedging reserve
8.Translation differences arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income 1,148,784,267.01 1,375,188,470.11
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
4,275,001,010.93 4,321,753,642.57
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
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Net cash received by agents in sale and purchase of securities
Write-back of tax received 25,327,532.10 28,784,608.45
Other cash received concerning operating activities 85,775,494.76 20,879,944.10
Subtotal of cash inflow arising from operating activities 4,386,104,037.79 4,371,418,195.12
Cash paid for purchasing commodities and receiving labor service 2,534,137,461.67 2,812,244,020.34
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of financial assets held for transaction purposes
Net increase of capital lent
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 681,756,769.56 683,701,600.44
Taxes paid 310,797,279.61 342,578,412.02
Other cash paid concerning operating activities 169,088,618.70 153,970,471.84
Subtotal of cash outflow arising from operating activities 3,695,780,129.54 3,992,494,504.64
Net cash flows arising from operating activities 690,323,908.25 378,923,690.48
II. Cash flows arising from investing activities:
Cash received from recovering investment 3,686,500,000.00 5,361,095,457.96
Cash received from investment income 525,843,992.65 463,686,171.47
Net cash received from disposal of fixed, intangible and other
72,457,256.41 39,773,802.87
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 4,284,801,249.06 5,864,555,432.30
Cash paid for purchasing fixed, intangible and other long-term
237,326,162.98 362,947,568.87
assets
Cash paid for investment 3,658,800,000.00 6,084,063,284.96
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 49,930,736.62
Other cash paid concerning investing activities 24,000,000.00 10,000,000.00
Subtotal of cash outflow from investing activities 3,970,056,899.60 6,457,010,853.83
Net cash flows arising from investing activities 314,744,349.46 -592,455,421.53
III. Cash flows arising from financing activities
Cash received from absorbing investment 13,880,037.60
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Including: Cash received from absorbing minority shareholders’
13,880,037.60
investment by subsidiaries
Cash received from loans 393,249,222.11 330,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5,470,000.00
Subtotal of cash inflow from financing activities 407,129,259.71 335,470,000.00
Cash paid for settling debts 378,622,036.77 219,000,000.00
Cash paid for dividend and profit distributing or interest paying 836,528,586.57 9,337,888.74
Including: Dividend and profit of minority shareholder paid by
174,600.00
subsidiaries
Other cash paid concerning financing activities 5,809,091.00 339,091.00
Subtotal of cash outflow from financing activities 1,220,959,714.34 228,676,979.74
Net cash flows arising from financing activities -813,830,454.63 106,793,020.26
IV. Influence on cash and cash equivalents due to fluctuation in
415,189.69 810,171.83
exchange rate
V. Net increase of cash and cash equivalents 191,652,992.77 -105,928,538.96
Add: Balance of cash and cash equivalents at the period -begin 2,404,674,139.49 2,948,439,354.22
VI. Balance of cash and cash equivalents at the period -end 2,596,327,132.26 2,842,510,815.26
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
2,342,213,493.89 2,707,966,926.41
services
Write-back of tax received
Other cash received concerning operating activities 48,525,763.15 9,047,393.86
Subtotal of cash inflow arising from operating activities 2,390,739,257.04 2,717,014,320.27
Cash paid for purchasing commodities and receiving labor service 1,218,981,667.53 1,572,426,004.69
Cash paid to/for staff and workers 369,225,756.08 361,672,047.87
Taxes paid 186,084,989.75 242,573,191.33
Other cash paid concerning operating activities 107,664,076.68 142,557,335.52
Subtotal of cash outflow arising from operating activities 1,881,956,490.04 2,319,228,579.41
Net cash flows arising from operating activities 508,782,767.00 397,785,740.86
II. Cash flows arising from investing activities:
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Cash received from recovering investment 3,521,500,000.00 5,174,745,373.00
Cash received from investment income 506,897,740.22 450,095,688.15
Net cash received from disposal of fixed, intangible and other
4,034,532.29 38,214,564.65
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 215,512,158.54
Subtotal of cash inflow from investing activities 4,247,944,431.05 5,663,055,625.80
Cash paid for purchasing fixed, intangible and other long-term
158,044,430.36 187,935,182.03
assets
Cash paid for investment 3,328,800,000.00 5,687,713,200.00
Net cash received from subsidiaries and other units obtained 82,156,428.71
Other cash paid concerning investing activities 187,880,372.33 173,000,000.00
Subtotal of cash outflow from investing activities 3,756,881,231.40 6,048,648,382.03
Net cash flows arising from investing activities 491,063,199.65 -385,592,756.23
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 160,000,000.00 180,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 160,000,000.00 180,000,000.00
Cash paid for settling debts 180,000,000.00 78,000,000.00
Cash paid for dividend and profit distributing or interest paying 831,020,889.20 3,391,380.55
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 1,011,020,889.20 81,391,380.55
Net cash flows arising from financing activities -851,020,889.20 98,608,619.45
IV. Influence on cash and cash equivalents due to fluctuation in
593,522.94 761,175.27
exchange rate
V. Net increase of cash and cash equivalents 149,418,600.39 111,562,779.35
Add: Balance of cash and cash equivalents at the period -begin 1,920,076,358.43 2,454,696,969.20
VI. Balance of cash and cash equivalents at the period -end 2,069,494,958.82 2,566,259,748.55
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
Amount for current period
In RMB
Semi-annual of 2019
Owners’ equity attributable to the parent Company
Other
equity
instrument
Le Pr
Pe
ss: ov
rp
In isi
et
ve on
Item Pr ua Other Ot Minority Total owners’
Capital nt Reasonable of
Share capital efe l comprehensive Surplus reserve Retained profit he Subtotal interests equity
reserve or reserve ge
rre ca Ot income r
y ne
d pit her
sh ral
sto al
ar ris
ck se
es k
cu
riti
es
I. Balance at the
1,008,950,5 3,416,022,7
end of the last -19,809,442.95 1,618,490.50 510,100,496.00 10,996,945,870.13 15,913,828,778.82 538,142,268.53 16,451,971,047.35
70.00 95.14
year
Add: Changes of
19,809,442.95 -19,809,442.95
accounting policy
Error correction of
the last period
Enterprise
combine under
the same control
Other
16
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
II. Balance at the
1,008,950,5 3,416,022,7
beginning of this 0.00 1,618,490.50 510,100,496.00 10,977,136,427.18 15,913,828,778.82 538,142,268.53 16,451,971,047.35
70.00 95.14
year
III. Increase/
Decrease in this
261,591.54 917,170.19 82,068,587.53 83,247,349.26 33,215,155.68 116,462,504.94
year (Decrease is
listed with “-”)
(i) Total
comprehensive 1,256,661,577.09 1,256,661,577.09 18,451,061.80 1,275,112,638.89
income
(ii) Owners’
devoted and 14,461,725.98 14,461,725.98
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other 14,461,725.98 14,461,725.98
(III) Profit
-1,174,592,989.56 -1,174,592,989.56 -1,174,592,989.56
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
-1,210,740,684.00 -1,210,740,684.00 -1,210,740,684.00
owners (or
17
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
shareholders)
4. Other 36,147,694.44 36,147,694.44 36,147,694.44
(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．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
917,170.19 917,170.19 302,367.90 1,219,538.09
reserve
1. Withdrawal in 10,101,863.7
10,101,863.74 892,049.10 10,993,912.84
the report period 4
2. Usage in the
9,184,693.55 9,184,693.55 589,681.20 9,774,374.75
report period
18
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(VI)Others 261,591.54 261,591.54 261,591.54
IV. Balance at the
1,008,950,5 3,416,022,7
end of the report 261,591.54 2,535,660.69 510,100,496.00 11,059,205,014.71 15,997,076,128.08 571,357,424.21 16,568,433,552.29
70.00 95.14
period
Amount for last year
In RMB
Semi-annual of 2018
Owners’ equity attributable to the parent Company
Other
Pr
equity
ov
instrument Les
isi
Per s:
on
Item pet Inv Other Ot Minority Total owners’
Share Pre Capital Reasonable of
ual ent comprehensiv Surplus reserve Retained profit he Subtotal interests equity
capital ferr reserve reserve ge
cap Ot ory e income r
ed ne
ital her sha
sto ral
sec res
ck ris
urit
k
ies
I. Balance at the end 1,008,950,5 3,417,841,4
87,169,455.01 2,606.93 510,100,496.00 9,811,609,138.92 14,835,673,669.75 515,693,194.48 15,351,366,864.23
of the last year 70.00 02.89
Add: Changes of
accounting policy
Error correction of
the last period
Enterprise
combine under the
same control
Other
II. Balance at the 1,008,950,5 3,417,841,4
beginning of this 87,169,455.01 2,606.93 510,100,496.00 9,811,609,138.92 14,835,673,669.75 515,693,194.48 15,351,366,864.23
70.00 02.89
year
III. Increase/ -1,824,597. -58,302,580.3 1,116,994.8 334,502,004.92 275,491,821.99 4,374,207.74 279,866,029.73
19
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Decrease in this year 47 5 9
(Decrease is listed
with “-”)
(i) Total
-58,302,580.3
comprehensive 1,545,242,704.92 1,486,940,124.57 32,704,373.09 1,519,644,497.66
5
income
(ii) Owners’
-1,824,597.
devoted and -1,824,597.47 -12,945,402.53 -14,770,000.00
47
decreased capital
1.Common shares
invested by -12,945,402.53 -12,945,402.53
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
-1,824,597.
4. Other -1,824,597.47 -1,824,597.47
47
(III) Profit
-1,210,740,700.00 -1,210,740,700.00 -15,604,600.00 -1,226,345,300.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -1,210,740,700.00 -1,210,740,700.00 -15,604,600.00 -1,226,345,300.00
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
20
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable 1,116,994.8
1,116,994.89 219,837.18 1,336,832.07
reserve 9
1. Withdrawal in the 10,050,468.
10,050,468.85 1,395,689.84 11,446,158.69
report period 85
2. Usage in the report 8,933,473.9
8,933,473.96 1,175,852.66 10,109,326.62
period 6
(VI)Others
IV. Balance at the
1,008,950,5 3,416,016,8 1,119,601.8
end of the report 28,866,874.66 510,100,496.00 10,146,111,143.84 15,111,165,491.74 520,067,402.22 15,631,232,893.96
70.00 05.42 2
period
8. Statement of Changes in Owners’ Equity (Parent Company)
Amount for current period
In RMB
21
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Semi-annual of 2019
Other equity instrument
Less:
Perpetu
Inven Other
Item Preferr al Capital public Reasonable Oth Total owners’
Share capital tory comprehensive Surplus reserve Retained profit
ed capital Other reserve reserve er equity
share income
stock securiti
s
es
I. Balance at the end of
1,008,950,570.00 3,488,221,286.39 -19,809,442.95 510,100,496.00 9,340,610,451.36 14,328,073,360.80
the last year
Add: Changes of
19,809,442.95 -19,809,442.95
accounting policy
Error correction of the
last period
Other
II. Balance at the
1,008,950,570.00 3,488,221,286.39 0.00 510,100,496.00 9,320,801,008.41 14,328,073,360.80
beginning of this year
III. Increase/ Decrease
in this year (Decrease is -25,808,722.55 -25,808,722.55
listed with “-”)
(i) Total comprehensive
1,148,784,267.01 1,148,784,267.01
income
(ii) Owners’ devoted
and decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution -1,174,592,989.56 -1,174,592,989.56
22
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
1. Withdrawal of surplus
reserves
2. Distribution for
-1,210,740,684.00 -1,210,740,684.00
owners (or shareholders)
3. Other 36,147,694.44 36,147,694.44
(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．Carry-over retained
earnings from the
defined benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
1,474,547.80 1,474,547.80
report period
2. Usage in the report
1,474,547.80 1,474,547.80
period
(VI)Others
IV. Balance at the end of
1,008,950,570.00 3,488,221,286.39 0.00 510,100,496.00 9,294,992,285.86 14,302,264,638.25
the report period
Amount for last year
In RMB
23
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Semi-annual of 2018
Other equity instrument
Less:
Perpetu
Inven Other
Item al Capital public Reasonable Othe Total owners’
Share capital Preferre tory comprehensive Surplus reserve Retained profit
capital Other reserve reserve r equity
d stock share income
securiti
s
es
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
this year (Decrease is -58,302,580.35 222,750,350.46 164,447,770.11
listed with “-”)
(i) Total comprehensive
-58,302,580.35 1,433,491,050.46 1,375,188,470.11
income
(ii) Owners’ devoted
and decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution -1,210,740,700.00 -1,210,740,700.00
24
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
1. Withdrawal of surplus
reserves
2. Distribution for
-1,210,740,700.00 -1,210,740,700.00
owners (or shareholders)
3. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4．Carry-over retained
earnings from the
defined benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the 3,751,960.6
3,751,960.66
report period 6
2. Usage in the report 3,751,960.6
3,751,960.66
period 6
(VI)Others
IV. Balance at the end of
1,008,950,570.00 3,488,221,286.39 28,866,874.66 510,100,496.00 8,583,551,439.84 13,619,690,666.89
the report period
25
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
III. 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.
26
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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.
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
27
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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.
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., Nanjing Weifu Jinning Co., Ltd. Etc
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.
28
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 27
August 2019
5. Scope of consolidate financial statement
Shareholding ratio Registered
(%) capital Statemen
Proportion
Short name of t
Name of subsidiary of votes (in 10 Business scope
subsidiary Indirectl consolid
Directly (%) thousand
y ate (Y/N)
Yuan)
Internal-combustio
Nanjing Weifu Jinning Co., Ltd. Co., Ltd. Weifu Jinning 80.00 -- 80.00 34,628.70 n engine Y
accessories
Wuxi Weifu Leader Catalytic Converter Co., Purifier and
Weifu Leader 94.81 -- 94.81 50,259.63 Y
Ltd. muffler
Internal-combustio
Weifu Mashan Pump Glib Co., Ltd. Weifu Mashan 100.00 -- 100.00 16,500 n engine Y
accessories
Internal-combustio
Weifu
Wuxi Weifu Chang’an Co., Ltd. 100.00 -- 100.00 21,000 n engine Y
Chang’an
accessories
Weifu
Wuxi Weifu International Trade Co. Ltd. International 100.00 -- 100.00 3,000 Trade Y
Trade
Internal-combustio
Wuxi Weifu ITM Supercharging Technique
Weifu ITM 100.00 -- 100.00 16,000 n engine Y
Co., Ltd.
accessories
Internal-combustio
Wuxi Weifu Schmidt Power System Spare
Weifu Schmidt 66.00 -- 66.00 7,600 n engine Y
Parts Co., Ltd.
accessories
Internal-combustio
Ningbo Weifu Tianli Supercharging
Weifu Tianli 54.2295 -- 54.2295 11,136 n engine Y
Technique Co., Ltd.
accessories
Wuxi Weifu-Autocam Fine Machinery Co. Weifu Automobile
51.00 -- 51.00 US$ 2,110 Y
Ltd. Autocam components
Wuxi Weifu Leader Catalytic Converter Weifu Leader Purifier and
-- 60.00 60.00 1,000 Y
(Wuhan) Co., Ltd. (Wuhan) muffler
Weifu Leader (Chongqing) Automobile Weifu Leader Purifier and
-- 100.00 100.00 5,000 Y
components Co., Ltd (Chongqing) muffler
Nanchang Weifu Leader Auto Parts & Weifu Leader Purifier and
-- 100.00 100.00 5,000 Y
Components Co., Ltd. (Nanchang) muffler
Weifu Holding Aps SPV 100.00 100.00 DKK 2620.60 Y
Fuel cell
IRD Fuel Cells A/S IRD 66.00 66.00 DKK 4,160 Y
components
29
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 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
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- 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 during the reporting period such as financial position, operation achievements and cash
flow.
30
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting
period shorter than one annual accounting year. The company adopts Gregorian calendar as accounting
period, namely form each 1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the
cash and cash equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations 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,
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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 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
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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 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
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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
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with the middle rate of the market exchange rate published by the People's Bank of China on the
transaction date. Thereinto, the occurred foreign currency exchange or transactions involved in the
foreign currency exchange are converted in accordance with the actual exchange rate in the
transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is
converted into the recording currency amount in accordance with the middle rate of the market
exchange rate published by the People's Bank of China on the transaction date. The balance between the
recording currency amount converted 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.
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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) Determination and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument
contract.
The recognition of a financial assets shall be terminated if it meets one of the following conditions:
① the contractual right to receive the cash flow of the financial assets terminates; and
② the financial assets have been transferred and meets the following termination recognition
conditions for the transfer of financial assets
If all or part of the current obligations of a financial liability has been discharged, the financial liability or
part of it is derecognized. When the Company (debtor) and the creditor sign an agreement to replace the
existing financial liabilities with new financial liabilities, and the new financial liabilities and the
existing financial liabilities are substantially different from the contract terms, derecognize the existing
financial liabilities and recognize the new financial liabilities at the same time.
Financial assets are traded in the normal way and their accounting recognition and derecognition
proceed on a trade date basis.
(2) Classification and measurement of financial assets
At the initial recognition, according to the business model of managing financial assets and the
contractual cash flow characteristics of financial assets, the Company classifies the financial assets into
the financial assets measured at amortized cost, the financial assets measured at fair value and whose
changes are included in other comprehensive income, and the financial assets measured at fair value
and whose changes are included in current profit or loss.
① Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven’t been
designated as financial assets measured at fair value and whose changes are included in current profit or
loss as financial assets measured at amortized cost:
A. the group's business model for managing the financial assets is to collect contractual cash
flows; and
B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date
is only paid for the principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost by using the effective
interest method. Gains or losses arising from financial assets which are measured at amortized cost and
are not a component of any hedging relationship are included in current profit or loss when being
derecognized, amortized by effective interest method, or impaired.
② Financial assets measured at fair value and whose changes are included in other comprehensive
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income
The Company classifies the financial assets that meet the following conditions and haven’t been
designated as financial assets measured at fair value and whose changes are included in current profit or
loss as financial assets measured at fair value and whose changes are included in other comprehensive
income:
A. the Group's business model for managing the financial assets is targeted at both the collection
of contractual cash flows and the sale of financial assets; and
B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific
date is only the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests,
impairment losses or gains and exchange gains and losses calculated by using the effective interest
method are included in profit or loss for the period, and other gains or losses are included in other
comprehensive income. When being derecognized, the accumulated gains or losses previously included
in other comprehensive income are transferred from other comprehensive income and included in
current profit or loss.
③ Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose
changes are included in other comprehensive income, the Company classifies all other financial assets as
financial assets measured at fair value and whose changes are included in current profit or loss. In the
initial recognition, in order to eliminate or significantly reduce accounting mismatch, the Company
irreversibly designates part of the financial assets that should be measured at amortized cost or measured
at fair value and whose changes are included in the other comprehensive income as the financial assets
measured at fair value and whose changes are included in current profit or loss.
After the initial recognition, such financial assets are subsequently measured at fair value, and the gains
or losses (including interests and dividend income) are included in the current profit and loss, unless the
financial assets are part of the hedging relationship.
However, for non-trading equity instrument investments, the Company irreversibly designates them as
the financial assets that are measured at fair value and whose changes are included in other
comprehensive income in the initial recognition. The designation is made based on a single investment
and the relevant investment is in line with the definition of equity instruments from the issuer's
perspective.
After initial recognition, such financial assets are subsequently measured at fair value. Dividend income
that meets the conditions is included in profit or loss, and other gains or losses and changes in fair value
are included in other comprehensive income. When it is derecognized, the accumulated gains or losses
previously included in other comprehensive income are transferred from other comprehensive income
and included in retained earnings.
The business model for managing financial assets refers to how the Company manages financial assets
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to generate cash flows. The business model determines whether the cash flow of financial assets
managed by the Company is based on contract cash flow, selling financial assets or both. The Company
determines the business model for managing financial assets based on objective facts and based on the
specific business objectives of financial assets management determined by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine
whether the contractual cash flows generated by the relevant financial assets on a specific date are only
payments for the principal and the interest based on the outstanding principal amount. The principal is
the fair value of the financial assets at initial recognition; the interest includes the time value of money,
the credit risk associated with the outstanding principal amount for a specific period, and other basic
borrowing risks, costs and consideration of profit. In addition, the Company evaluates the contractual
terms that may result in changes in the time distribution or the amount of contractual cash flows of the
financial assets to determine whether they meet the requirements of the above contractual cash flow
characteristics.
Only when the Company changes its business model of managing financial assets, all affected financial
assets are reclassified on the first day of the first reporting period after the business model changes,
otherwise the financial assets are not allowed to be reclassified after initial recognition. .
Financial assets are measured at fair value on initial recognition. For financial assets measured at fair
value and whose changes are included in current profit or loss, the related transaction expenses are
directly included in current profit or loss. For other types of financial assets, the related transaction
costs are included in the initial recognition amount. For the accounts receivable or notes receivable
arising from the sale of products or the provision of labor services that do not contain or consider the
significant financing components, the Company uses the consideration amount that is expected to be
received as the initial recognition amount.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and
whose changes are included in current profit or loss and financial liabilities measured at amortized cost
at the initial recognition. For financial liabilities that are not classified as financial liabilities measured at
fair value and whose changes are included in current profit or loss, the related transaction expenses are
included in the initial recognition amount.
①Financial liability measured by fair value and with variation reckoned into current gains/losses
Financial liability measured by fair value and with variation reckoned into current gains/losses
including tradable financial liability and the financial liabilities that are designated as fair value in the
initial recognition and whose changes are included in current profit or loss. For such financial liabilities,
the subsequent measurement is based on fair value, and the gains or losses arising from changes in fair
value and the dividends and interest expenses related to these financial liabilities are included in current
profit or loss.
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②Financial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest
method. The gain or loss arising from derecognition or amortization is included in current profit or
loss.
③Distinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.
B. Contractual obligations to exchange financial assets or financial liabilities with other parties
under potentially adverse conditions.
C. Non-derivative contracts that must be settled or that can be settled by the company's own equity
instruments in the future, and the enterprise will deliver a variable amount of its own equity instruments
according to the contract.
D. Derivative contracts that must be settled or that can be settled by the company's own equity
instruments in the future, except for derivatives contracts that exchange a fixed amount of cash or other
financial assets with a fixed amount of their own equity instruments.
An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after
deducting all liabilities.
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or
other financial assets, the contractual obligation is consistent with the definition of financial liability.
If a financial instrument is required to be settled or can be settled by the Company's own equity
instruments, it is necessary to consider whether the Company's own equity instruments used to settle the
instrument are a substitute for cash or other financial assets, or to make the instrument holder enjoy the
residual equity in the assets of the issuer after deducting all liabilities. In the former case, the instrument
is the Company's financial liability; if it is the latter, the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have
sufficient available data and other information support to determine the fair value of related financial
assets and financial liabilities. The company divides the input values used by valuation techniques into
the following levels and uses them in sequence:
① The first-level input value is the unadjusted quotation of the same assets or liabilities that can be
obtained on the measurement date in the active market;
② The second-level input value is the direct or indirect observable input value of the relevant assets or
liabilities other than the first-level input value, including quotations of similar assets or liabilities in an
active market; quotations of same or similar assets or liabilities in an active market; other observable
input value other than quotations, such as interest rate and yield curves that are observable during the
normal quote interval; market- validated input value, etc.;
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
③ The third-level input value is the unobservable input value of the relevant assets or liabilities,
including the interest rate that cannot be directly observed or cannot be verified by observable market
data, stock volatility, future cash flow of the retirement obligation assumed in the business combination,
and financial forecasting made by its own data, etc.
(5) Impairment of financial assets
On the basis of expected credit losses, the Company performs impairment treatment on financial assets
measured at amortized cost and creditors’ investment measured at fair value and whose changes are
included in other comprehensive income and recognize the provisions for loss.
①Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted
by the risk of default. Credit loss refers to the difference between all contractual cash flows that the
Company discounts at the original actual interest rate and are receivable in accordance with contract
and all cash flows expected to be received, that is, the present value of all cash shortages. Among them,
for the purchase or source of financial assets that have suffered credit impairment, the Company
discounts the financial assets at the actual interest rate adjusted by credit.
The Company measures the expected credit losses of financial instruments at different stages. If the
credit risk of a financial instrument has not increased significantly since the initial recognition, the
financial instrument is in the first stage, and the Company measures the loss provisions according to the
expected credit losses in the next 12 months. If the credit risk of a financial instrument has increased
significantly but the credit impairment has not yet occurred since the initial recognition, the financial
instrument is in the second stage, and the Company measures the loss provisions according to the
expected credit losses of the instrument for the entire duration. If the financial instrument has suffered
credit impairment since the initial confirmation, it is in the third stage, the Company measures the loss
provisions according to the expected credit losses of the instrument for the entire duration.
For the financial instrument with lower credit risk on the balance sheet date, the Company assumes that
its credit risk has not increased significantly since the initial recognition, and measures the loss
provisions according to the expected credit losses in the next 12 months.
The expected credit losses for the entire duration refer to the expected credit losses due to all possible
credit events during the entire expected duration of the financial instrument. Expected credit losses in the
next 12 months refer to the expected credit losses caused by the possible credit events of financial
instrument that may occur within 12 months after the balance sheet date (if the expected duration of
financial instrument is less than 12 months, it shall be the expected duration), which are part of the
expected credit loss for the entire duration.
When measuring expected credit losses, the maximum period that the Company needs to consider is the
longest contract period for which the company is exposed to credit risk (including options for
consideration of renewal).
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
For notes receivable and accounts receivable, regardless of whether there is a major financing, the
Company always measures its loss provisions according to the amount of expected credit losses for the
entire duration.
The Company divides the combination of the notes receivable and accounts receivable according to the
credit risk characteristics, and calculates the expected credit losses on the basis of combinations, the
basis for determining the combination is as follows:
A. Note receivable
Note receivable 1：Bank acceptance bill
Note receivable 2：Trade acceptance
B. Account receivable
Account receivable 1：Receivables from internal related party
Account receivable 2：Receivable from other clients
For the notes receivable divided into combinations, the Company calculates the expected credit losses by
referring to the historical credit loss experience, combing with the current situation and the forecast of
future economic conditions, and through the default risk exposure and the expected credit loss rate for
the entire duration.
For the accounts receivable divided into combinations, the Company calculates the expected credit
losses by referring to the historical credit loss experience, combing with the current situation and the
forecast of future economic conditions, and compiling a comparison table of accounts receivable aging
and the expected credit loss rate for the entire duration.
C. Other receivables
When a single other receivables cannot be used to estimate the expected credit loss at a reasonable cost,
the Company divides other receivables into several combinations based on the credit risk characteristics,
and calculates the expected credit losses based on a combination, the basis for determining the
combination is as follows:
Other account receivable 1：Receivables from internal related party
Other account receivable 2：Receivable from other clients
For other receivables classified as a combination, the Company calculates the expected credit loss
through the default risk exposure and the expected credit loss rate over the next 12 months or the entire
duration.
D. Debt investment, other debt investment
For debt investment and other debt investment, the Company calculates the expected credit losses
according to the nature of the investment, according to various types of counter parties and risk
exposures, and through default risk exposure and expected credit loss rate in the next 12 months or the
entire duration.
②Assessment of a significant increase in credit risk:
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
The Company determines the relative changes in default risk of the financial instrument occurred in the
expected duration and assess whether the credit risks of financial instrument has increased significantly
since the initial recognition by comparing the risk of default of the financial instrument on the balance
sheet date with the risk of default of financial instrument on the initial recognition date. When
determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidence-based information that can be obtained without unnecessary
additional costs or effort, including forward-looking information. The information considered by the
Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;
B. Serious worsening of external or internal credit rating (if any) of the financial instruments that
have occurred or are expected;
C. Serious deterioration of the debtor’s operating results that have occurred or are expected;
D. Changes in existing or anticipated technical, market, economic or legal circumstances that will
have a material adverse effect on the debtor's ability to repay the company.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased
significantly on the basis of a single financial instrument or combination of financial instruments. When
conducting an assessment based on a combination of financial instruments, the Company can classify
financial instruments based on common credit risk characteristics, such as overdue information and
credit risk ratings.
The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company, and the assessment does not consider the
Company to take recourse actions such as realizing collateral (if held).
③Financial assets with credit impairment
On the balance sheet date, the Company assesses whether the credit of financial assets measured at
amortized cost and the credit of debt investments measured at fair value and whose changes are included
in other comprehensive income has been impaired. When one or more events that adversely affect the
expected future cash flows of a financial asset occur, the financial asset becomes a financial asset that
has suffered credit impairment. Evidence that credit impairment has occurred in financial assets includes
the following observable information:
A. The issuer or the debtor has significant financial difficulties;
B. The debtor breaches the contract, such as default or overdue repayment of interest or principal;
C. The Company gives concessions to the debtor that will not be made in any other circumstances
for economic or contractual considerations relating to the financial difficulties of the debtor;
D. The debtor is likely to go bankrupt or carry out other financial restructurings;
E. The financial difficulties of the issuer or the debtor have caused the active market of the financial
asset to disappear.
④ Presentation of expected credit loss provisions
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the
Company re-measures the expected credit losses on each balance sheet date, and the resulting increase or
reversal of the loss provisions shall be included in current profit and loss as impairment losses or gains.
For financial assets measured at amortized cost, the loss provisions are written off against the book value
of the financial assets listed in the balance sheet; for debt investments measured at fair value and whose
changes are included in other comprehensive income, the Company recognizes the loss provisions in
other comprehensive income and does not deduct the book value of the financial asset.
⑤Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or
partially recovered, directly write down the book balance of the financial asset. Such write-downs
constitute the derecognition of related financial assets. This usually occurs when the Company
determines that the debtor has no assets or sources of income to generate sufficient cash flow to repay the
amount that will be written down. However, according to the Company's procedures for recovering the
due amount, the financial assets that have been written down may still be affected by the execution
activities.
If the financial assets that have been written down are recovered afterwards, they shall be included in the
profit or loss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the
transferee) other than the issuer of the financial assets.
For financial assets that the Company has transferred almost all risks and rewards of ownership of
financial assets to the transferee, derecognize the financial assets; if almost all the risks and rewards of
ownership of financial assets have been retained, do not derecognize the financial assets.
If the Company has neither transferred nor retained almost all the risks and rewards of ownership of
financial assets, dispose as following situations: If the control of the financial assets is abandoned,
derecognize the financial assets and determine the resulting assets and liabilities. If the control of the
financial assets is not abandoned, determine the relevant financial assets according to the extent to which
they continue to be involved in the transferred financial assets, and determine the related liabilities
accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the
financial assets, the balance-out sum between the financial assets and liabilities is listed in the balance
sheet. In addition, the financial assets and liabilities are listed in the balance sheet without being
balanced out.
11. Note receivable
Found more in the impairment of financial instrument carried in Financial Instrument
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
12. Account receivable
Found more in the impairment of financial instrument carried in Financial Instrument
13. Other account receivable
Found more in the impairment of financial instrument carried in Financial Instrument
11. Note receivable
The notes receivable settled by the Company are all bank acceptance and letters of credit, based on the
credit risk characteristics of notes receivable, the credit risk of notes receivable is comprehensively
evaluated, the Company does not make credit impairment losses for notes receivable.
12. 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 is
significant amount defined as account receivables with significant amount in single item.
In line with the difference of present value of future cash flow lower its book
Withdrawal method for account with single significant
value, carried out impairment test independently and withdrawal the bad debt
amount and withdrawal single item bad debt provision
reserves
(2) Receivables with bad debt provision accrual by credit portfolio
Portfolio Bad debt provision
accrual
Classify to many combination based on credit portfolio for those receivables with minor account singly and Age analysis method
those with major amount but has no impairment been found after testing independently; base on the actual
loss ratio of the receivables of previous years, with same or similar credit portfolio, and combining actual
condition accrual bad debt reserves.
In portfolio, 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
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%
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3－4 years 100.00% 100.00%
4－5 years 100.00% 100.00%
Over 5 years 100.00% 100.00%
In portfolio, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In portfolio, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for
single item
Reasons for withdrawal single item The present value of future cash flow has major difference with the receivable group’s present
bad debt provision value of future cash flow
Withdrawal method for bad debt Carried out impairment test independently, accrual bad debt reserves according to the difference of
provision present value of future cash flow lower its book value
13. Other account receivable
Method for determining expected credit losses of other receivables and accounting treatment methods
For other receivables, whether or not it contains significant financing components, the company always
measures its loss provisions according to the amount of expected credit losses during the entire renewal
period, and the resulting increase or reversal amount of loss provisions is included in the current profit
and loss as an impairment loss.
The company classifies other receivables into several combinations based on similar credit risk
characteristics, and calculates the expected credit losses based on all reasonable and evidenced
information (including forward-looking information) on the basis of combination, the basis for
determining the combination is as follows:
Basis for determining
Item Method of measuring expected credit loss
portfolio
Refer to the historical credit loss experience, combine with the current situation and
Other account the forecast of future economic conditions, compile a comparison table of the age of
Account age
receivable other receivables and the expected credit loss rate of the entire renewal period, and
calculate the expected credit losses.
14. Inventory
Whether the Company needs to comply with the disclosure requirement of special industry
N
(1) Classification of inventories
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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
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.
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②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
15. Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions
as held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar
transaction, the non-current assets or disposal group can be sold immediately at its current condition;
The sale is likely to occur, that is, the Company has made resolution on the selling plan and obtained
definite purchase commitment, the selling is estimated to be completed within one year. Those assets
whose disposal is subject to approval from relevant authority or supervisory department under relevant
requirements are subject to that approval.
Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary,
whether or not the Company retains part equity investment after such disposal, investment in the
subsidiary shall be classified in its entirety as held for sale in the separate financial statement of the
parent company subject to that the investment in the subsidiary proposed to be disposed satisfies the
conditions for being classified as held for sale, and all the assets and liabilities of the subsidiary shall
be classified as held for sale in consolidated financial statement.
The purchase commitment identified refers to the legally binding purchase agreement entered into
between the Company and other parties, which sets out certain major terms relating to transaction price,
time and adequately stringent punishment for default, which render an extremely minor possibility for
material adjustment or revocation of the agreement.
Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense.
If the carrying value is higher than fair value less selling expense, the excess shall be recognized as
impairment loss and recorded in profit or loss for the period, and allowance for impairment shall be
provided for in respect of the assets. In respect of impairment loss recognized for disposal group held
for sale, carrying value of the goodwill in the disposal group shall be deducted first, and then deduct
the carrying value of the non-current assets within the disposal group applicable to this measurement
standard on a pro rata basis according to the proportion taken by their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent
balance sheet date increases, the amount previously reduced for accounting shall be recovered and
reverted from the impairment loss recognized after the asset is classified under the category of held for
sale, with the amount reverted recorded in profit or loss for the period. Impairment loss recognized
before the asset is classified under the category of held for sale shall not be reverted. If the net amount
of fair value of the disposal group held for sale on the subsequent balance sheet date less sales
expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall
be reverted in the impairment loss recognized in respect of the non-current assets which are applicable
to relevant measurement provisions after classification into the category of held for sale, with the
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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.
16.Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control,
joint control or significant influence over the 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 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
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“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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 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
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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 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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-”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.
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17. 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-“Impairment of long-term assets”
18. 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
Category Depreciation 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
Straight-line depreciation 4~5 5 19.00~23.75
equipment
Electronic and other
Straight-line depreciation 3～10 5 9.50～31.67
equipment
(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
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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”.
19. Construction in progress
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-“Impairment of long-term assets”
20. 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
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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.
21. 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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
technology etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and
other related costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the
value stipulated in the investment contract or agreement, except where the value stipulated in the
contract or agreement is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in
substance, is carried at the fair value of the assets exchanged out; for those not commercial in
substance, they are carried at the carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
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.
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22. Impairment of long-term assets
The Company will judge if there is any indication of impairment as at the balance sheet date in respect
of non-current non-financial assets such as fixed assets, construction in progress, intangible assets with
a finite useful life, investment properties measured at cost, and long-term equity investments in
subsidiaries, joint controlled entities and associates. If there is any evidence indicating that an asset
may be impaired, recoverable amount shall be estimated for impairment test. Goodwill, intangible
assets with an indefinite useful life and intangible assets beyond working conditions will be tested for
impairment annually, regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying
amount, the impairment provision will be made according to the difference and recognized as an
impairment loss. The recoverable amount of an asset is the higher of its fair value less costs of disposal
and the present value of the 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.
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23. 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.
24. 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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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.
25. 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
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26. Revenue
Whether the Company needs to comply with the disclosure requirement of special industry
No
Whether implemented the new revenue standards
□ Yes √ 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
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percentage of completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service
revenue is determined and recognized by adopting the percentage of completion method. The
completion progress of service transaction is determined by the proportion of incurred costs in the
estimated total cost.
The total service revenue is determined by the received or receivable contract or agreement costs,
except that the received or receivable contract or agreement costs are not fair. On the balance sheet date,
the service revenue of the current period is determined by multiplying the total service revenue by the
completion progress and deducting the amount accumulated in the previous accounting period and
confirmed to render the service revenue. Meanwhile, the labor costs of the current period are carried
forward by multiplying the total estimated costs of labor services by the completion progress and
deducting the amount accumulated in the previous accounting period with confirmed service costs.
For the service transaction results cannot be estimated reliably on the balance sheet date, respectively
dispose as following circumstances:
①The incurred labor costs estimated to be compensated are confirmed to render the service revenue
according to the incurred labor costs, and are carried forward by the equivalent amount.
②The incurred labor costs estimated not to be compensated are reckoned in the current profits or
losses, and are not confirmed to render the service revenue.
27. 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.
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(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into
current gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period,
than recognized deferred income, and should reckoned into current gain/loss during the period while
relevant expenses are recognized; if they making up relevant expenses and losses that occurred, than
reckoned into current gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other
income; those without related to daily operation activity should reckoned into non-operation income
and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
28. 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 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
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29. Lease
(1) Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method
and reckoned in the current expenses throughout the lease term without deducting rent-free period. The
initial direct costs related to the lease transactions paid by the company are reckoned in the current
expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company,
the company shall deduct the expenses from the total rental costs, share by the deducted rental costs
during the lease term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded,
shall be amortized by straight-line method and recognized as leasing revenue. The initial direct costs
paid with leasing transaction concerned are reckoned into current expenditure; the amount is larger is
capitalized when incurred, and accounted for as profit or loss for the current period on the same basis
as recognition of rental income over the entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor,
the company shall deduct the expenses from the total rental income, and distribute by the deducted
rental costs during the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be
at the lower of the fair value of the leased asset and the present value of minimum lease payment at the
beginning date of the lease. Minimum lease payment shall be the entry value of long-term accounts
payable, with difference recognized as unrecognized financing expenses. Unrecognized financing
expenses shall be reckoned in financial expenses and amortized and using effective interest method
during the leasing period. The initial direct costs 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.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
30. Other important accounting policy and accounting estimation
In the process of applying the Company's accounting policies, due to the inherent uncertainty of
business activities, the Company needs to judge, estimate and assume the book value of the report
items cannot be accurately measured. These judgments, estimates and assumptions are made on the
basis of the historical experience of the Company’s management and by considering other relevant
factors, which shall impact the reported amounts of income, expenses, assets and liabilities and the
disclosure of contingent liabilities on the balance sheet date. However, the actual results caused by the
estimated uncertainties may differ from the management's current estimates of the Company so as to
carry out the significant adjustments to the book value of the assets or liabilities to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis
of continuing operations, the changes in accounting estimates only affect the current period, of which
the impacts are recognized in the current period; the changes in accounting estimates not only affect the
current period but also the future periods, of which the impacts are recognized in the current and future
periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to
judge, estimate and assume are as follows:
(1) Provision for bad debts
According to the accounting policies of the accounts receivable, the Company adopts the allowance
method to calculate the bad debt losses. The impairment of receivables is based on the assessment to the
collectability of the accounts receivable. The impairment of accounts receivable requires the
management’s judgments and estimates. The actual results and the differences between the previously
estimated results shall affect the book value of accounts receivable and the provision or return of the
receivables’ bad debt reserves during the period estimated to be changed.
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the
cost and the net realizable value, if the cost is higher than the net realizable value and the old and
unsalable inventories, the Company calculates and withdraws the inventory impairment. The inventory
devalues to the net realizable value by evaluating the inventory’s vendibility and net realizable value.
To identify the inventory impairment, the management needs to obtain the unambiguous evidences,
and consider the purpose to hold the inventory, and judge and estimate the impacts of events after the
balance sheet date. The actual results and the differences between the previously estimated results shall
affect the book value of inventory and the provision or return of the inventory impairment during the
period estimated to be changed.
(3) Held-to-maturity investments
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
The Company classifies the non-derivative financial assets that meet the requirements, have the fixed
or ascertainable repayment amount and fixed due date, and that the Company has the positive intention
and ability to hold to maturity as the held-to-maturity investment. This classification involves a lot of
judgments. In the process of making the judgments, the Company will evaluate its willingness and
ability to this held-to-maturity investment. Except in certain cases (such as the investments with
insignificant sales amount when the maturity date comes), if the Company fails to hold these
investments till the maturity date, then all the investments shall be reclassified to the available-for-sale
financial assets which cannot be classified as the held-to-maturity investments in this fiscal year and the
next two fiscal years. This kind of case may have a significant impact on the relevant financial assets
value listed on the financial statements, and may affect the Company's financial instruments risk
management strategy.
(4) Impairment of held-to-maturity investments
The Company determines that the impairment of held-to-maturity investments largely relies on
management's judgments. The objective evidences of impairment include that the issuer has serious
financial difficulties so that the financial assets cannot continue to be traded in an active market, or
cannot be able to fulfill the contract terms (for example, breach the contract of paying the interests or
principal), etc. In the process of making the judgments, the Company needs to evaluate the impact of the
objective evidence of impairment to the expected future cash flows of the investment.
(5) Impairment of financial assets available for sale
The Company determines that the impairment of held-to-maturity investments largely relies on
management's judgments and assumptions so as to determine whether it is needed to affirm its
impairment loss in the profit statement. In the process of making the judgments and assumptions, the
Company needs to evaluate the extent and duration when the fair value of the investment is less than the
cost, as well as the financial situation and short-term business prospects of the 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.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement
price similar to the assets in the fair trade or the observable market price, and subtract the incremental
costs determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant
judgments to the output, price, and related operating expenses of the asset (or asset group) and the
discount rate used for calculating the present value. When estimating the recoverable amount, the
Company shall adopt all the relevant 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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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.
31. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
√ Applicable □ Not applicable
Approval
Content and causes for changes of accounting policy Note
procedures
In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments and Accounting
Standards for Business Enterprises No. 23 - Transfer of Financial Assets , Accounting Standards for Approved and
Business Enterprises No. 24 - Hedge Accounting, and the Accounting Standards for Business deliberated by Notice No.:
Enterprises No. 37 – Financial Instruments Presentation, and the domestic listed companies are 5th session of 2019-006
th
required to put the relevant accounting standards of new financial instruments into force from 9 BOD
January 1, 2019. The Company implement the above mentioned four accounting standards since
1 Jan. 2019
On April 2019, the Ministry of Finance issued No. 6 Document 2019-“Notice on Amending the 2019 Ministry of
Annual Financial Statements of General Enterprises”, which revised the financial statement format of Finance No. 6
general enterprises in light of the relevant situation in the implementation of enterprise accounting Document
standards. 2019
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of
new financial instrument standards, new revenue standards and new leasing standards
√ Applicable □ Not applicable
Consolidate balance sheet
In RMB/CNY
Item 2018-12-31 2019-01-01 Adjustments
Current assets:
Monetary funds 2,616,321,740.73 2,616,321,740.73
Settlement provisions
Capital lent
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Tradable financial assets 4,740,773,607.43 4,740,773,607.43
Financial assets measured by fair value and with
variation reckoned into current gains/losses
Derivative financial assets
Note receivable 1,148,107,603.68 1,148,107,603.68
Note receivable 1,919,793,266.91 1,919,793,266.91
Account receivable financing
Account paid in advance 94,651,431.31 94,651,431.31
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 84,582,246.16 84,582,246.16
Including: Interest receivable 1,842,437.50 1,842,437.50
Dividend receivable
Buying back the sale of financial assets
Inventory 1,438,528,714.59 1,438,528,714.59
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 4,632,137,600.26 60,250,896.83 -4,571,886,703.43
Total current assets 11,934,122,603.64 12,103,009,507.64 168,886,904.00
Non-current assets:
Loans and payments on behalf
Creditors’ investment
Available-for-sale financial assets 255,975,176.91 -255,975,176.91
Other creditors’ investment
Held-to-maturity investments
Long-term receivables
Long-term equity investment 4,976,773,946.74 4,976,773,946.74
Other equity instrument investment 87,088,272.91 87,088,272.91
Other non-current financial assets
Investment real estate 21,906,134.52 21,906,134.52
Fixed assets 2,707,374,678.61 2,707,374,678.61
Construction in progress 166,414,542.18 166,414,542.18
Productive biological assets
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Oil and gas assets
Right-of-use asset
Intangible assets 324,892,822.75 324,892,822.75
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 16,637,652.31 16,637,652.31
Deferred income tax assets 234,697,139.58 234,697,139.58
Other non-current assets 251,462,676.27 251,462,676.27
Total non-current assets 8,957,918,856.66 8,789,031,952.66 -168,886,904.00
Total assets 20,892,041,460.30 20,892,041,460.30
Current liabilities:
Short-term borrowings 298,928,213.94 298,928,213.94
Loan from central bank
Capital borrowed
Tradable financial liability
Financial liability measured by fair value and with
variation reckoned into current gains/losses
Derivative financial liability 490,329.13 490,329.13
Note payable 1,018,367,533.74 1,018,367,533.74
Account payable 2,047,336,834.66 2,047,336,834.66
Accounts received in advance 41,329,857.80 41,329,857.80
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Employee compensation payable 312,113,178.24 312,113,178.24
Taxes payable 74,271,613.92 74,271,613.92
Other accounts payable 64,448,723.52 64,448,723.52
Including: Interest payable 517,469.08 517,469.08
Dividend payable
Commission charge and commission payable
Reinsurance payable
Contract liability
Liability held for sale
Non-current liabilities due within one year 15,000,000.00 15,000,000.00
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Other current liabilities
Total current liabilities 3,872,286,284.95 3,872,286,284.95
Non-current liabilities:
Insurance contract reserve
Long-term loans 30,000,000.00 30,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 35,422,354.11 35,422,354.11
Long-term employee compensation payable 74,679,175.36 74,679,175.36
Accrual liabilities
Deferred income 425,769,854.13 425,769,854.13
Deferred income tax liabilities 1,912,744.40 1,912,744.40
Other non-current liabilities
Total non-current liabilities 567,784,128.00 567,784,128.00
Total liabilities 4,440,070,412.95 4,440,070,412.95
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 3,416,022,795.14
Less: Inventory shares
Other comprehensive income -19,809,442.95 19,809,442.95
Reasonable reserve 1,618,490.50 1,618,490.50
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 10,996,945,870.13 10,996,945,870.13 -19,809,442.95
Total owners’ equity attributable to parent company 15,913,828,778.82 15,913,828,778.82
Minority interests 538,142,268.53 538,142,268.53
Total owners’ equity 16,451,971,047.35 16,451,971,047.35
Total liabilities and owner’s equity 20,892,041,460.30 20,892,041,460.30
Explanation
In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
No. 22 - Recognition and Measurement of Financial Instruments and Accounting Standards for
Business Enterprises No. 23 - Transfer of Financial Assets , Accounting Standards for Business
Enterprises No. 24 - Hedge Accounting, and the Accounting Standards for Business Enterprises No. 37
– Financial Instruments Presentation, and the domestic listed companies are required to put the
relevant accounting standards of new financial instruments into force from January 1, 2019. The
Company implement the above mentioned four accounting standards since 1 Jan. 2019
(1) Add new item of “Tradable financial assets”, parts of the former “Other current assets” and
“Available-for-sale financial assets” are re-classified for listing
(2) Add new item of “Other equity instrument investment”, parts of the former “Available-for-sale
financial assets” is re-classified for listing
(3) Re-classify “Other comprehensive income” to “Retained profit”
Balance sheet of parent company
In RMB/CNY
Item 2018-12-31 2019-01-01 Adjustments
Current assets:
Monetary funds 1,922,408,227.00 1,922,408,227.00
Tradable financial assets 4,740,773,607.43 4,740,773,607.43
Financial assets measured by fair value and with
variation reckoned into current gains/losses
Derivative financial assets
Note receivable 264,264,207.30 264,264,207.30
Note receivable 742,246,990.99 742,246,990.99
Account receivable financing
Account paid in advance 59,028,927.25 59,028,927.25
Other account receivable 196,849,092.13 196,849,092.13
Including: Interest receivable 188,682.78 188,682.78
Dividend receivable
Inventory 492,054,274.67 492,054,274.67
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 4,576,688,553.49 4,801,850.06 -4,571,886,703.43
Total current assets 8,253,540,272.83 8,422,427,176.83 168,886,904.00
Non-current assets:
Creditors’ investment
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Available-for-sale financial assets 180,035,176.91 -180,035,176.91
Other creditors’ investment
Held-to-maturity investments
Long-term receivables
Long-term equity investment 5,739,110,426.55 5,739,110,426.55
Other equity instrument investment 11,148,272.91 11,148,272.91
Other non-current financial assets
Investment real estate
Fixed assets 1,534,109,106.80 1,534,109,106.80
Construction in progress 78,673,300.59 78,673,300.59
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets 188,101,655.94 188,101,655.94
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 140,286,756.70 140,286,756.70
Other non-current assets 184,208,090.40 184,208,090.40
Total non-current assets 8,044,524,513.89 7,875,637,609.89 -168,886,904.00
Total assets 16,298,064,786.72 16,298,064,786.72
Current liabilities:
Short-term borrowings 112,000,000.00 112,000,000.00
Tradable financial liability
Financial liability measured by fair value and with
variation reckoned into current gains/losses
Derivative financial liability
Note payable 330,545,052.37 330,545,052.37
Account payable 823,693,469.51 823,693,469.51
Accounts received in advance 6,639,554.63 6,639,554.63
Contract liability
Employee compensation payable 200,205,508.25 200,205,508.25
Taxes payable 39,193,425.15 39,193,425.15
Other accounts payable 12,142,596.68 12,142,596.68
Including: Interest payable 149,966.66 149,966.66
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Dividend payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,524,419,606.59 1,524,419,606.59
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long-term employee compensation payable 63,962,762.93 63,962,762.93
Accrual liabilities
Deferred income 381,609,056.40 381,609,056.40
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 445,571,819.33 445,571,819.33
Total liabilities 1,969,991,425.92 1,969,991,425.92
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 19,809,442.95
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 9,340,610,451.36 9,320,801,008.41 -19,809,442.95
Total owners’ equity 14,328,073,360.80 14,328,073,360.80
Total liabilities and owner’s equity 16,298,064,786.72 16,298,064,786.72
Explanation
In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises
No. 22 - Recognition and Measurement of Financial Instruments and Accounting Standards for
74
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Business Enterprises No. 23 - Transfer of Financial Assets , Accounting Standards for Business
Enterprises No. 24 - Hedge Accounting, and the Accounting Standards for Business Enterprises No. 37
– Financial Instruments Presentation, and the domestic listed companies are required to put the
relevant accounting standards of new financial instruments into force from January 1, 2019. The
Company implement the above mentioned four accounting standards since 1 Jan. 2019
(1) Add new item of “Tradable financial assets”, parts of the former “Other current assets” and
“Available-for-sale financial assets” are re-classified for listing
(2) Add new item of “Other equity instrument investment”, parts of the former “Available-for-sale
financial assets” is re-classified for listing
(3) Re-classify “Other comprehensive income” to “Retained profit”
(4) Retrospective adjustment of early comparison data description when initially implemented
the new financial instrument standards and new leasing standards
□ Applicable √ Not applicable
32. Other
Nil
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
Tax rate of 17%, 16%, 13%, 11%, 10%, 9%, 6% and 5%, rate for
exported commodities is stipulated by the state with declaration
VAT Taxable income
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%, 22%, 15%
Educational surtax Turnover tax payable 5%, 4.5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Weifu Mashan, Weifu Chang’an, Weifu International Trade, Weifu ITM, Weifu Schmidt, Weifu Leader
25%
(Wuhan), Weifu Leader(Nanchang)
The Company, Weifu Jinning, Weifu Leader, Weifu Tianli, Weifu Autocam, Weifu Leader(Chongqing) 15%
SPV, IRD Fuel Cells A/S 22%
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 2019 年半年度财务报告
VII. Notes to major items in consolidated financial statements
1.Monetary funds
In RMB/CNY
Item Ending balance Opening balance
Cash on hand 71,791.03 194,161.03
Cash in bank 2,596,255,341.24 2,534,479,978.46
Other monetary funds 93,371,445.06 81,647,601.24
Total 2,689,698,577.33 2,616,321,740.73
Including: Total amount saving aboard 32,827,414.62
Other explanation
Item 2019-06-30 2018-12-31
Bank acceptance bill, L/C and other collateral 52,783,679.85 80,765,732.67
Deposit for Letter of Guarantee 158,280.00
Frozen dividend 1,655,119.95 881,868.57
The currency funds in transit for selling the equity of 38,774,365.26
Protean Holdings Corp.
Total 93,371,445.06 81,647,601.24
The frozen dividend of 1,655,119.95 Yuan represents the part of dividends distributed by SDEC (stock
code:600841) and Miracle Automation (stock code:002009) for 2017, 2018 and 2019 held by the
Company as tradable financial assets. 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.
The currency funds in transit for selling the equity of Protean Holdings Corp. is the equity selling
money that sold by the Company, it is not available for relevant procedures are in process
2. Tradable financial assets
In RMB/CNY
Item Ending balance Opening balance
Financial assets measured by fair value and with variation reckoned into
151,261,956.00 121,066,008.00
current gains/losses
Including:
77
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
SDEC 104,680,056.00 85,458,408.00
Miracle Automation 46,581,900.00 35,607,600.00
Financial assets designated to be measured by fair value and with variation
4,258,207,599.43 4,619,707,599.43
reckoned into current gains/losses
Including:
Guolian Securities Shares 12,000,000.00 12,000,000.00
Shanghai Chengding Detong Equity Investment 35,820,896.00 35,820,896.00
Other: financial products 4,210,386,703.43 4,571,886,703.43
Total 4,409,469,555.43 4,740,773,607.43
Other explanation
Implemented new financial instrument standards in 2019, the tradable financial assets was re-classified from former
available-for-sale financial assets
3. Note receivable
(1) Classification of notes receivable
In RMB/CNY
Item Ending balance Opening balance
Bank acceptance bill 1,402,441,411.19 1,082,574,482.88
Trade acceptance bill 89,952,810.16 65,533,120.80
Total 1,492,394,221.35 1,148,107,603.68
(2) Bad debt provision accrual, collected or reversal in the period
□ Applicable √ Not applicable
(3) Note receivable that pledged at period-end
In RMB/CNY
Item Amount pledged at period-end
Bank acceptance bill 762,571,527.45
Total 762,571,527.45
(4) Notes endorsement or discount and undue on balance sheet date
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 359,389,642.56
Trade acceptance bill 4,190,000.00
Total 363,579,642.56
(5) 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
Trade acceptance bill 6,800,000.00
Total 6,800,000.00
Other explanation
The Trade 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 June 30, 2019, these bills had expired.
(6) Note receivable actually written-off in the period
Nil
4. 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 bad debt 8,552,24 8,552,24 8,685,110 8,685,110
0.36% 100.00% 0.44% 100.00%
provision accrual on 2.26 2.26 .25 .25
a single basis
Including:
Account receivable
with single 6,800,00 6,800,00 7,000,000 7,000,000
0.29% 100.00% 0.36% 100.00%
significant amount 0.00 0.00 .00 .00
and withdrawal bad
79
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
debt provision on
single basis
Account receivable
with single minor
amount but with bad 1,752,24 1,752,24 1,685,110 1,685,110
0.07% 100.00% 0.08% 100.00%
debts provision 2.26 2.26 .25 .25
accrued on a single
basis
Account receivable
with bad debt 2,356,86 37,552,6 2,319,307 1,951,016 31,222,95 1,919,793,2
99.64% 1.59% 99.56% 1.60%
provision accrual on 0,269.31 14.73 ,654.58 ,221.14 4.23 66.91
portfolio
Including:
Account receivable
with bad debt 2,356,86 37,552,6 2,319,307 1,951,016 31,222,95 1,919,793,2
99.64% 1.59% 99.56% 1.60%
provision accrual on 0,269.31 14.73 ,654.58 ,221.14 4.23 66.91
age analysis
2,365,41 46,104,8 2,319,307 1,959,701 39,908,06 1,919,793,2
Total 100.00% 1.95% 100.00% 2.04%
2,511.57 56.99 ,654.58 ,331.39 4.48 66.91
Bad debt provision accrual on single basis: RMB 6,800,000.00.
In RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio Accrual causes
Have difficulty in
BD bills 6,800,000.00 6,800,000.00 100.00%
collection
Total 6,800,000.00 6,800,000.00 -- --
Bad debt provision accrual on single basis: RMB 1,752,242.26
In RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio Accrual causes
Account receivable with single
minor amount but with bad Have difficulty in
1,752,242.26 1,752,242.26 100.00%
debts provision accrued on a collection
single basis
Total 1,752,242.26 1,752,242.26 -- --
Bad debt provision accrual on portfolio: RMB 37,552,614.73.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
In RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Account receivable with bad debt provision accrual on
2,356,860,269.31 37,552,614.73 1.59%
age analysis
Total 2,356,860,269.31 37,552,614.73 --
Explanation on portfolio 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
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Ending balance
Within one year(One year included) 2,277,983,177.64
Within 6 months 2,116,062,868.00
6 months to one year 161,920,309.64
1-2 years 69,703,171.66
2-3 years 2,923,284.26
Over 3 years 6,250,635.75
3-4 years 6,250,635.75
Total 2,356,860,269.31
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrual Written-off
reversal
Bad debt provision accrual on credit
39,908,064.48 6,607,638.33 403,280.82 7,565.00 46,104,856.99
risk portfolio
Total 39,908,064.48 6,607,638.33 403,280.82 7,565.00 46,104,856.99
Including major amount bad debt provision that collected or reversal in the period:
In RMB/CNY
81
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Enterprise Amount collected or reversal Collection by
BD bills 200,000.00 Collection
Total 200,000.00 --
(3) Account receivable actually written-off in the period
In RMB/CNY
Item Amount written-off
Retail enterprise 7,565.00
Including major account receivable written-off : nil
(4) Top 5 account receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 1,245,808,296.79 Yuan,
takes 52.67 percent of the total account receivable at period-end, bad debt provision accrual
correspondingly at year-end amounting as 7,579,746.83 Yuan.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
5. Account paid in advance
(1) By account age
In RMB/CNY
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 123,926,769.78 94.67% 89,076,980.53 94.11%
1-2 years 5,312,592.60 4.06% 4,536,408.47 4.79%
2-3 years 1,569,872.98 1.20% 980,958.32 1.04%
Over 3 years 89,584.01 0.07% 57,083.99 0.06%
Total 130,898,819.37 -- 94,651,431.31 --
Explanation on reasons of failure to settle on important account paid in advance with age over one year: Nil
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Top 5 account paid in advance at ending balance by prepayment object
Total period-end balance of top five account paid in advance by prepayment object amounted
to42,001,171.79 Yuan, takes 32.09 percent of the total advance payment at period-end.
6. Other account receivable
In RMB/CNY
Item Ending balance Opening balance
Interest receivable 674,104.16 1,842,437.50
Dividend receivable 536,162,445.67
Other account receivable 60,433,069.23 82,739,808.66
Total 597,269,619.06 84,582,246.16
(1) Interest receivable
1) Category of interest receivable
In RMB/CNY
Item Ending balance Opening balance
Time deposit 674,104.16 1,842,437.50
Total 674,104.16 1,842,437.50
2) Significant overdue interest: nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
In RMB/CNY
Item (or invested enterprise ) Ending balance Opening balance
SDEC 610,417.20
Guolian Securities Co., Ltd. 903,640.00
Zhonglian Electronic 105,200,000.00
Bosch Automobile Diesel 429,448,388.47
Total 536,162,445.67
2) Important dividend receivable with account age over one year: nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(3) Other account receivable
1) By nature
In RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 46,492,901.74 15,328,121.55
Compensation for assets disposal receivable 67,981,726.00
Receivable from the tax refund for withholding the B-share 11,515,433.66
Cash deposit 3,076,126.84 3,206,825.88
Staff loans and petty cash 4,656,003.60 1,172,017.93
Other 184,793.26 509,873.93
Total 65,925,259.10 88,198,565.29
2) Accrual of bad debt provision
In RMB/CNY
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit losses Total
the entire duration (without the entire duration (with
over next 12 months
credit impairment occurred) credit impairment occurred)
Balance on Jan. 1, 2019 2,683,204.00 2,775,552.63 5,458,756.63
Balance of Jan. 1, 2019 in
—— —— —— ——
the period
Current accrual 34,961.84 34,961.84
Current reversal 1,528.60 1,528.60
Balance on Jun. 30, 2019 2,716,637.24 2,775,552.63 5,492,189.87
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Ending balance
Within one year(One year included) 60,446,202.47
Within 6 months 60,122,838.05
6 months to one year 323,364.42
1-2 years 21,454.00
2-3 years 3,400.00
Over 3 years 2,678,650.00
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
3-4 years 2,678,650.00
Total 63,149,706.47
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrual
reversal
Account receivable with single significant amount
2,775,552.63 2,775,552.63
and withdrawal bad debt provision on single basis
Account receivable with bad debt provision accrual
2,683,204.00 34,961.84 1,528.60 2,716,637.24
on portfolio
Total 5,458,756.63 34,961.84 1,528.60 5,492,189.87
Including major amount with bad debt provision reverse or collected in the period: nil
4) Other account receivable actually written-off in the period: nil
5) Top 5 other receivables at ending balance by arrears party
In RMB/CNY
Ratio in total ending Ending balance
Enterprise Nature Ending balance Account age balance of other of bad debt
receivables reserve
Troowin Power System 36.40%
Intercourse funds of unit 24,000,000.00 Within 6 months
Technology Co., Ltd.
Protean Holdings Corp. Amount from equity 15.93%
10,499,081.51 Within 6 months
（Note） sales
Robert Bosch Company Intercourse funds of unit 7,600,000.00 Within 6 months 11.53%
Ningbo Jiangbei High-Tech 2.68%
Industry Park Development Performance bond 1,767,000.00 Over three years 1,767,000.00
Construction Co., Ltd.
American HESS Company Intercourse funds of unit 1,514,671.20 个别认定 2.30% 1,514,671.20
Total -- 45,380,752.71 -- 68.84% 3,281,671.20
6) 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
Other explanation
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Note: In June 2019, Protean Holdings Corp. which was invested by the company was 100% acquired
by Virtue Surge Limited, Virtue Surge Limited continues to exist after the merger, and Protean
Holdings Corp. no longer exists. This acquisition invoked 5.1 “Drag-along right” in the fifth revision
and the restatement of the shareholder agreement of Protean Holdings Corp., i.e. 5.1 (a) i. The most
majority of shareholders agree with the shareholding ratio; ii. Oak Investment Partners XII LP ("Oak")
with privilege and holding 64.77% of the issued shares agrees; iii. GSR Ventures ("GSR") with
privilege and holding 9.58% of the issued shares agrees; iv. The majority of the board of directors of
Protean Holdings Corp. agrees.
In view of the fact that the majority shareholder of Protean Holdings Corp. exercised the “Drag-along
right”, that is, the vast majority of Protean Holdings Corp.’s shareholders were in favor of the
shareholding, and the Protean Holdings Corp. board of directors mostly agreed, which met the
drag-along conditions, so Weifu High Tech must agree to sell its 9.61% stake in Protean Holdings
Corp., and there were dozens of other shareholders who held the remaining 16.04% of the issued
shares were dragged to sell their shares. After the sale, the company no longer holds a stake in Protean
Holdings Corp.
In this M&A and sale of equity transactions, the company is expected to obtain US$7.17 million in
revenue, of which the expected down payment of US$5,640,153.79 has been received at the end of June,
and the remaining US$1.53 million will be used as a reserve guarantee for the M&A and is expected to
be received in 12 months.
7. Inventory
Whether implemented the new revenue standards
□Yes √No
(1) Category
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 383,335,648.45 64,071,932.72 319,263,715.73 405,113,183.37 71,085,820.65 334,027,362.72
Goods in process 177,818,860.49 13,699,553.98 164,119,306.51 182,564,277.52 13,682,081.67 168,882,195.85
Finished goods 1,077,721,703.57 133,968,453.82 943,753,249.75 1,080,800,727.38 145,181,571.36 935,619,156.02
Total 1,638,876,212.51 211,739,940.52 1,427,136,271.99 1,668,478,188.27 229,949,473.68 1,438,528,714.59
86
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Inventory depreciation reserve
In RMB/CNY
Current increased Current decreased
Item Opening balance Reversal or Ending balance
Accrual Other Other
write-off
Raw materials 71,085,820.65 1,422,322.52 8,436,210.45 64,071,932.72
Goods in process 13,682,081.67 17,472.31 13,699,553.98
Finished goods 145,181,571.36 61,090.44 11,274,207.98 133,968,453.82
Total 229,949,473.68 1,500,885.27 19,710,418.43 211,739,940.52
(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
8. Other current assets
Whether implemented the new revenue standards
□Yes √No
In RMB/CNY
Item Ending balance Opening balance
Entrusted financial product
Export tax refund receivable 5,764,074.36 7,848,937.72
Prepaid tax fees and VAT retained 52,783,100.03 47,808,273.37
Input tax to be deducted and certified 420,338.49 3,420,317.46
Other 587,339.98 1,173,368.28
Total 59,554,852.86 60,250,896.83
9. Long-term equity investment
In RMB/CNY
Current changes (+,-) Endin
The invested Ending g
Opening balance Ad Cap Investment Other Othe Cash dividend Provisi Ot
entity balance balan
dit ital gain/loss compr r or profit on for her
ce of
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
ion red recognized under ehensi equit announced to impair impai
al ucti equity ve y issued ment rment
inv on incom chan provi
est e ge sion
me adjust
nt ment
I. Joint venture
Wuxi Weifu
577,229,858.9
Environment 565,646,086.93 11,583,772.04
7
Catalyst Co.,Ltd.
Wuxi Weifu
Electric Drive 54,742,375.02 -1,176,749.59 53,565,625.43
Tech. Co., Ltd.
630,795,484.4
Subtotal 620,388,461.95 10,407,022.45
0
II. Associated enterprise
Bosch Automobile
2,966,945,647
Diesel System 3,207,122,893.40 618,719,531.29 858,896,776.94
.75
Co., Ltd.
Zhonglian
Automobile 1,128,808,363
1,086,475,955.72 147,532,407.57 105,200,000.00
Electronic Co., .29
Ltd.
Weifu Precision
Machinery
55,310,157.90 4,661,420.22 59,971,578.12
Manufacturing
Co., Ltd.
Shinwell
Automobile Tech. 7,476,477.77 -1,250,239.86 6,226,237.91
(Wuxi) Co., Ltd.
4,161,951,827
Subtotal 4,356,385,484.79 769,663,119.22 964,096,776.94
.07
4,792,747,311
Total 4,976,773,946.74 780,070,141.67 964,096,776.94
.47
10. Other equity instrument investment
In RMB/CNY
Item Ending balance Opening balance
Beijing Zhike Industry Investment Holding Group Co., Ltd. 75,940,000.00 75,940,000.00
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Wuxi Xidong Science & Technology Industrial Park Co., Ltd 5,000,000.00 5,000,000.00
Wuxi Xichang Microchip Semi-Conductor 100,000,000.00
Protean Holdings Corp. 6,148,272.91
Total 180,940,000.00 87,088,272.91
11. Other non-current financial assets
In RMB/CNY
Item Ending balance Opening balance
Tradable financial assets holding for over one year 368,800,000.00
Total 368,800,000.00
12. Investment real estate
(1) Investment real estate measured by cost
√ Applicable □ Not applicable
In RMB/CNY
Land use Construction in
Item House and Building Total
right progress
I. Original book value
1.Opening balance 61,677,335.83 61,677,335.83
2.Current increased
(1) Outsourcing
(2) Inventory\fixed assets\construction in process transfer-in
(3) Increased by combination
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 61,677,335.83 61,677,335.83
II. Accumulated depreciation and accumulated amortization
1.Opening balance 39,771,201.31 39,771,201.31
2.Current increased 774,359.33 774,359.33
(1) Accrual or amortization 774,359.33 774,359.33
3.Current decreased
(1) Disposal
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Other transfer-out
4.Ending balance 40,545,560.64 40,545,560.64
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 21,131,775.19 21,131,775.19
2. Opening book value 21,906,134.52 21,906,134.52
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
Nil
13. Fixed assets
In RMB/CNY
Item Ending balance Opening balance
Fixed assets 2,680,884,221.89 2,707,374,678.61
Total 2,680,884,221.89 2,707,374,678.61
(1) Fixed assets
In RMB/CNY
Machinery Transportation Electronic and other
Item House and Building Total
equipment equipment equipment
I. Original book
value:
1.Opening balance 1,552,720,830.68 2,491,008,841.08 35,760,995.37 506,932,413.54 4,586,423,080.67
2.Current 50,785,697.90 67,996,785.02 27,287,346.56 146,069,829.48
90
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
increased
(1) Purchase 27,350.00 2,194,645.89 1,218,137.82 3,440,133.71
(2) Construction in
50,758,347.90 38,117,012.08 25,682,906.08 114,558,266.06
progress transfer-in
(3) Increased by
27,685,127.05 386,302.66 28,071,429.71
combination
3.Current
105,775.86 6,974,597.84 573,529.92 4,326,432.35 11,980,335.97
decreased
(1) Disposal or
6,974,597.84 573,529.92 4,326,432.35 11,874,560.11
scrapping
(2) Construction in
progress transfer to 105,775.86 105,775.86
fixed assets
4.Ending balance 1,603,400,752.72 2,552,031,028.26 35,187,465.45 529,893,327.75 4,720,512,574.18
II. Accumulated
depreciation
1.Opening balance 329,964,732.08 1,229,552,990.27 24,745,652.33 240,562,371.27 1,824,825,745.95
2.Current
22,965,941.24 107,544,181.46 1,368,053.76 38,029,254.26 169,907,430.72
increased
(1) Accrual 22,965,941.24 87,891,862.13 1,368,053.76 37,680,059.40 149,905,916.53
(2) Increased by
19,652,319.33 349,194.86 20,001,514.19
combination
3.Current
83,749.27 5,091,489.41 475,772.49 2,802,789.50 8,453,800.67
decreased
(1) Disposal or
83,749.27 5,091,489.41 475,772.49 2,802,789.50 8,453,800.67
scrapping
4.Ending balance 352,846,924.05 1,332,005,682.32 25,637,933.60 275,788,836.03 1,986,279,376.00
III. Depreciation
reserves
1.Opening balance 46,869,092.62 73,319.90 7,280,243.59 54,222,656.11
2.Current
increased
(1) Accrual
3.Current
859,429.88 14,249.94 873,679.82
decreased
(1) Disposal or
859,429.88 14,249.94 873,679.82
scrapping
4.Ending balance 46,009,662.74 73,319.90 7,265,993.65 53,348,976.29
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
IV. Book value
1. Ending book
1,250,553,828.67 1,174,015,683.20 9,476,211.95 246,838,498.07 2,680,884,221.89
value
2. Opening book
1,222,756,098.60 1,214,586,758.19 10,942,023.14 259,089,798.68 2,707,374,678.61
value
(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
Item Book value Reasons for without the property certification
Boiler room and guard house of Weifu Jinning 2,640,467.55 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 42,607,819.23 Still in process of relevant property procedures
(6) Disposal of fixed assets
Nil
14. Construction in progress
In RMB/CNY
Item Ending balance Opening balance
Construction in progress 259,557,105.61 166,414,542.18
Total 259,557,105.61 166,414,542.18
(1) Construction in progress
In RMB/CNY
92
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Weifu Tianli Technical
4,285,789.25 4,285,789.25 3,214,458.65 3,214,458.65
Transformation Project
echnical Transformation
125,369,185.24 1,470,033.00 123,899,152.24 62,131,476.77 1,470,033.00 60,661,443.77
Project of parent company
Technical transformation
33,251,718.48 33,251,718.48 64,861,621.60 64,861,621.60
of Weifu Autocam
Other 100,216,788.26 2,096,342.62 98,120,445.64 39,773,360.78 2,096,342.62 37,677,018.16
Total 263,123,481.23 3,566,375.62 259,557,105.61 169,980,917.80 3,566,375.62 166,414,542.18
(2) Changes of major construction in progress in the period
In RMB/CNY
includin
Accum Interes
Proporti g:
ulated t
B Other on of Pr interest
Amount amount capital
ud Opening Current decreased project og capitali Source
Item transfer-in Ending balance of ization
ge balance increased in the investme res zed of funds
fixed assets interest rate of
t Period nt in s amount
capitali the
budget of the
zation year
year
Weifu
Tianli
Technica
151,724.1
l 3,214,458.65 3,132,210.40 1,909,155.66 4,285,789.25 Other
4
Transfor
mation
Project
Technica
l
Transfor 62,131,476.7 106,018,046. 42,780,337.7
125,369,185.24 Other
mation 7 19 2
Project
of parent
company
Technica
64,861,621.6 23,970,066.5 54,952,720.4 627,249.2
l 33,251,718.48 Other
0 9 6 5
transfor
93
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
mation
of Weifu
Autocam
130,207,557. 133,120,323. 99,642,213.8 778,973.3
Total 162,906,692.97 -- -- --
02 18 4 9
(3) The provision for impairment of construction in progress
Nil
(4) Engineering material
Nil
15. Intangible assets
(1) Intangible assets
In RMB/CNY
Non-patent Trademark and Computer
Item Land use right Patent Total
technology trademark license software
I. Original book value
1.Opening balance 381,203,520.00 3,539,793.05 41,597,126.47 52,996,879.28 479,337,318.80
2.Current increased 317,685.92 3,394,263.76 3,711,949.68
(1) Purchase 2,756,543.81 2,756,543.81
(2) Internal R&D
(3) Increased by
317,685.92 637,719.95 955,405.87
combination
3.Current decreased
(1) Disposal
4.Ending balance 381,203,520.00 3,857,478.97 41,597,126.47 56,391,143.04 483,049,268.48
II. Accumulated
amortization
1.Opening balance 78,623,510.56 2,625,346.70 9,709,000.00 46,839,738.79 137,797,596.05
2.Current increased 4,176,430.34 178,718.30 3,839,922.87 8,195,071.51
(1) Accrual 4,176,430.34 176,988.96 3,416,558.52 7,769,977.82
(2) Increased by
1,729.34 423,364.35 425,093.69
combination
3.Current decreased
94
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(1) Disposal
4.Ending balance 82,799,940.90 2,804,065.00 9,709,000.00 50,679,661.66 145,992,667.56
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 298,403,579.10 1,053,413.97 15,241,226.47 5,711,481.38 320,409,700.92
2. Opening book value 302,580,009.44 914,446.35 15,241,226.47 6,157,140.49 324,892,822.75
(2) Land use right without property certification held
Nil
16. 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
IRD Fuel Cells A/S 53,807,260.21 53,807,260.21
Total 1,784,086.79 53,807,260.21 55,591,347.00
(2) Impairment provision for goodwill
Nil
Relevant information about the assets group or portfolio goodwill included
①Goodwill 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 conducted an impairment test on goodwill to estimate the present
value of future cash flows and the recoverable amount of the goodwill-related asset group, that is to
95
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
estimate the present value of future cash flow based on the management's financial budget for the next
five years and the discount rate of 12.21%, the cash flow of the year after the five years of financial
budget has remained stable. The asset group identified during the goodwill impairment test did not
change.
The key parameters determined by the goodwill impairment test are as follows: The current value of the
expected future cash flow of the asset group related to goodwill is measured by using 20%~23% of gross
profit margin and 9%~15% of the operating income growth rate in the forecast period as key parameters.
The management determines these parameters based on historical conditions prior to the forecast period
and forecasts of market development. After the above tests, the company's goodwill does not need to
make provisions for impairment.
②IRD Fuel Cells A/S Goodwill: In 2019, the company established SPV (a wholly-owned subsidiary)
in Denmark to acquire a 66% stake in Danish IRD Fuel Cells A/S (hereinafter referred to as "IRD")
held by FCCTApS., which is equivalent to a total of 7.26 million euros, and CIRO's valuation is 11
million euros; goodwill is the part of the acquisition cost greater than the fair value of the IRD net
identifiable assets.
Instructions for goodwill impairments test process and key parameters (such as the forecast period growth rate, stable
period growth rate, profit rate, discount rate, and forecast period when estimating the present value of the future cash
flow), and the method of confirming the impairment loss of goodwill:
Nil
17. Long-term deferred expenses
In RMB/CNY
Item Opening balance Current increased Amortized in the Period Other decrease Ending balance
Remodeling costs etc. 16,637,652.31 3,766,419.71 1,498,822.02 18,905,250.00
Total 16,637,652.31 3,766,419.71 1,498,822.02 18,905,250.00
18. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB/CNY
Ending balance Opening balance
Deductible Deductible
Item Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Bad debt reserve 50,810,260.67 7,783,655.00 44,576,998.51 6,770,470.23
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Inventory depreciation reserve 191,893,925.45 30,139,509.60 210,088,809.57 32,942,217.43
Impairment provision for fixed assets 19,801,699.55 3,186,449.03 20,661,129.43 3,315,363.51
Impairment provision for construction in progress 3,566,375.62 534,956.34 3,566,375.62 534,956.34
Impairment provision for intangible assets 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Change of fair value of available-for-sale financial
23,305,227.00 3,495,784.05
assets
Impairment provision for other equity instrument
10,000,000.00 1,500,000.00
investment
Depreciation reserves of available-for-sale financial
155,994,927.09 23,399,239.06
asset
Deferred income 410,876,651.99 61,631,497.80 422,215,782.35 63,332,367.36
Internal un-realized profit 61,587,106.96 9,238,066.05 33,204,053.14 6,439,903.29
Payable salary, accrued expenses etc. 602,725,422.49 95,239,575.84 539,804,494.87 85,801,436.71
Depreciation assets, amortization difference 29,138,524.33 4,748,000.87 53,624,344.54 8,439,877.52
Deductible loss of subsidiary 9,677,975.44 2,419,493.86 9,677,975.44 2,419,493.86
Change of fair value of derivative financial liability 490,329.13 73,549.37
Total 1,406,724,842.50 218,918,239.39 1,533,857,346.69 239,461,693.73
(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
12,381,519.47 1,857,227.92 12,751,629.44 1,912,744.40
combination not under the same control
Change of fair value of other creditors’
30,195,948.00 4,529,392.20
investment
Change of fair value of other equity
31,763,694.33 4,764,554.15 31,763,694.33 4,764,554.15
instrument investment
Total 74,341,161.80 11,151,174.27 44,515,323.77 6,677,298.55
(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 assets and liabilities at assets or liabilities
assets and liabilities
after off-set period-begin after off-set
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Deferred income tax assets -4,764,554.15 214,153,685.24 -4,764,554.15 234,697,139.58
Deferred income tax liabilities -4,764,554.15 6,386,620.12 -4,764,554.15 1,912,744.40
(4) Details of unrecognized deferred income tax assets
In RMB/CNY
Item Ending balance Opening balance
Bad debt reserve 786,786.19 789,822.60
Inventory depreciation reserve 19,846,015.07 19,860,664.11
Loss from subsidiary 134,492,349.34 139,281,223.32
Impairment provision for fixed assets 33,547,276.74 33,561,526.68
Impairment provision for other equity
48,633,106.95 48,633,106.95
instrument investment
Total 237,305,534.29 242,126,343.66
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB/CNY
Maturity year Ending amount Opening amount Note
2019 13,864,159.93 25,671,694.55 Subsidiaries have operating losses
2020 44,795,747.87 44,795,747.87 Subsidiaries have operating losses
2021 46,080,956.48 46,080,956.48 Subsidiaries have operating losses
2022 10,503,882.86 10,503,882.86 Subsidiaries have operating losses
2023 4,188,264.45 12,228,941.56 Subsidiaries have operating losses
2024 3,249,606.38 Subsidiaries have operating losses
Total 122,682,617.97 139,281,223.32 --
19. Other non-current assets
Whether implemented the new revenue standards
□Yes √No
In RMB/CNY
Item Ending balance Opening balance
Engineering equipment paid in advance 295,639,334.53 251,462,676.27
Total 295,639,334.53 251,462,676.27
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
20. Short-term borrowings
(1) Category of short-term borrowings
In RMB/CNY
Item Ending balance Opening balance
Debt of honor 321,055,399.28 298,928,213.94
Total 321,055,399.28 298,928,213.94
Explanation on category of short-term borrowings: nil
(2) Overdue short-term loans without payment
Nil
21. Derivative financial liability
In RMB/CNY
Item Ending balance Opening balance
Derivative financial liability 490,329.13
Total 490,329.13
22. Note payable
In RMB/CNY
Category Ending balance Opening balance
Bank acceptance bill 1,591,019,357.36 1,018,367,533.74
Total 1,591,019,357.36 1,018,367,533.74
Notes expired at year-end without paid was 0.00 Yuan.
23. Account payable
(1) Account payable
In RMB/CNY
Item Ending balance Opening balance
Within one year 2,349,278,569.14 1,957,672,043.76
1-2 years 96,290,673.62 10,208,129.49
2-3 years 10,696,107.46 7,830,950.08
99
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Over three years 36,318,708.17 71,625,711.33
Total 2,492,584,058.39 2,047,336,834.66
(2) Important account payable with account age over one year
Nil
24. Accounts received in advance
Whether implemented the new revenue standards
□Yes √No
(1) Accounts received in advance
In RMB/CNY
Item Ending balance Opening balance
Within one year 51,239,061.80 33,337,169.03
1-2 years 935,180.49 6,544,805.44
2-3 years 64,130.40 425,759.63
Over three years 799,491.98 1,022,123.70
Total 53,037,864.67 41,329,857.80
(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
25. Employee compensation payable
(1) Employee compensation payable
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 167,414,050.82 531,926,552.27 549,654,450.68 149,686,152.41
II. Post-employment welfare- defined
32,505,677.48 72,803,533.28 84,157,402.12 21,151,808.64
contribution plans
100
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
III. Dismissed welfare 2,601,561.75 515,426.00 1,863,263.01 1,253,724.74
IV. Other welfare due within one year 90,050,000.00 44,085,521.00 45,964,479.00
V. Other short-term welfare-Housing
subsidies, employee benefits and 19,541,888.19 1,996,132.75 17,545,755.44
welfare funds
Total 312,113,178.24 605,245,511.55 681,756,769.56 235,601,920.23
(2) Short-term compensation
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonuses, allowancesandsubsidies 148,435,979.41 428,283,206.11 444,745,192.60 131,973,992.92
2. Welfare for workers and staff 32,428,482.17 32,428,482.17
3. Social insurance 9,451,627.58 30,400,781.73 33,141,499.65 6,710,909.66
Including: Medical insurance 7,681,163.73 25,519,780.88 27,920,811.47 5,280,133.14
Work injury insurance 997,896.55 2,276,917.80 2,373,914.26 900,900.09
Maternity insurance 772,567.30 2,604,083.05 2,846,773.92 529,876.43
4. Housing accumulation fund 658,798.00 33,775,081.00 33,808,788.00 625,091.00
5. Labor union expenditure and
8,867,645.83 7,039,001.26 5,530,488.26 10,376,158.83
personnel education expense
Total 167,414,050.82 531,926,552.27 549,654,450.68 149,686,152.41
(3) Defined contribution plans
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment insurance 17,945,666.32 59,741,208.52 65,508,569.43 12,178,305.41
2. Unemployment insurance 581,515.16 1,649,534.04 1,792,887.85 438,161.35
3. Enterprise annuity 13,978,496.00 11,412,790.72 16,855,944.84 8,535,341.88
Total 32,505,677.48 72,803,533.28 84,157,402.12 21,151,808.64
26. Taxes payable
In RMB/CNY
Item Ending balance Opening balance
VAT 11,847,039.81 15,332,751.18
101
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Corporation income tax 53,460,184.87 48,855,330.99
Individual income tax 413,036.74 1,861,196.92
City maintaining & construction tax 1,053,237.23 884,819.63
Educational surtax 752,312.33 543,438.10
Other (including stamp tax and local funds) 5,924,885.67 6,794,077.10
Total 73,450,696.65 74,271,613.92
27. Other accounts payable
In RMB/CNY
Item Ending balance Opening balance
Interest payable 752,404.25 517,469.08
Dividend payable 369,352,725.60
Other accounts payable 60,134,191.62 63,931,254.44
Total 430,239,321.47 64,448,723.52
(1) Interest payable
In RMB/CNY
Item Ending balance Opening balance
Long-term borrowing interest for installment 90,312.50 90,312.50
Interest payable for short-term loans 662,091.75 420,478.58
Other 6,678.00
Total 752,404.25 517,469.08
Major overdue interest: nil
(2) Dividend payable
In RMB/CNY
Item Ending balance Opening balance
Ordinary stock dividends 369,352,725.60
Total 369,352,725.60
Other explanation, including important dividend payable over one year without payment, disclose reasons for un-paid: Nil
(3) Other accounts payable
1) Other accounts payable by nature
102
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
In RMB/CNY
Item Ending balance Opening balance
Deposit and margin 23,589,117.50 18,680,843.00
Social insurance and reserves funds that withholding 7,786,440.63 7,682,496.48
Intercourse funds of unit 25,512,145.98 30,982,145.98
Other 3,246,487.51 6,585,768.98
Total 60,134,191.62 63,931,254.44
2) Significant other payable with over one year age
In RMB/CNY
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 --
28. 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 15,000,000.00
Total 15,000,000.00 15,000,000.00
29. Long-term loans
(1) Category of long-term loans
In RMB/CNY
Item Ending balance Opening balance
Guaranteed loan 22,500,000.00 30,000,000.00
Total 22,500,000.00 30,000,000.00
30. Long-term account payable
In RMB/CNY
Item Ending balance Opening balance
Long-term account payable 16,818,181.00 17,157,272.00
Special accounts payable 18,265,082.11 18,265,082.11
Total 35,083,263.11 35,422,354.11
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(1) Long-term account payable 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
Loan transferred from treasury bond (note④) 678,181.00 1,017,272.00
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 16,818,181.00 17,157,272.00
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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 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
Item Opening balance Current increased Current decreased Ending balance Cause
Removal compensation of
18,265,082.11 18,265,082.11
subsidiary Weifu Jinning
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 30 June 2019.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
31. Long-term employee compensation payable
(1) Long-term employee compensation payable
In RMB/CNY
Item Ending balance Opening balance
II. Dismiss welfare 10,716,412.43 10,716,412.43
III. Other long-term welfare 63,962,762.93 63,962,762.93
Total 74,679,175.36 74,679,175.36
(2) Change of defined benefit plans
Nil
32. Deferred income
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause
Government grants 425,769,854.13 2,428,000.00 12,779,779.24 415,418,074.89 Financial allocation received
Total 425,769,854.13 2,428,000.00 12,779,779.24 415,418,074.89 --
Item with government grants involved:
In RMB/CNY
Amount Amount Cost
Assets
New grants reckoned in reckoned into reductio Other
Liability Opening balance Ending balance related/Incom
in the Period non-operatio other income n in the changes
e related
n revenue in the period period
Industrialization
project for
injection VE
pump system with
electronically 2,884,001.16 2,884,001.16 Assets related
controlled high
pressure for
less-emission
diesel used
Appropriation on
reforming of
production line 7,100,000.00 7,100,000.00 Assets related
technology and
R&D ability of
106
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
common rail
system for diesel
by distributive
high-voltage
Fund of industry Income
60,400,000.00 60,400,000.00
upgrade(2012) related
Fund of industry Income
60,520,000.00 60,520,000.00
upgrade(2013) related
Appropriation on
central basic
2,142,857.16 2,142,857.16 Assets related
construction
investment
R&D and
industrialization
of the high
pressure variable
pump of the 8,413,809.44 8,413,809.44 Assets related
common rail
system of diesel
engine for
automobile
Research institute
of motor vehicle
exhaust 2,472,471.21 2,472,471.21 Assets related
aftertreatment
technology
Fund of industry Income
36,831,000.00 36,831,000.00
upgrade(2014) related
New-built assets
compensation 11,339,130.3
147,575,675.52 136,236,545.16 Assets related
after the removal 6
of parent company
Fund of industry Income
40,000,000.00 40,000,000.00
upgrade(2016) related
Guiding capital
for the technical
reform from State 9,740,000.00 9,740,000.00 Assets related
Hi-Tech Technical
Commission
Implementation of
10,908,721.03 10,908,721.03 Assets related
the variable
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
cross-section
turbocharger for
diesel engine
Demonstration
project for
1,450,030.10 1,450,030.10 Assets related
intelligent
manufacturing
Other 35,331,288.51 2,428,000.00 1,440,648.88 36,318,639.63 Assets related
12,779,779.2
Total 425,769,854.13 2,428,000.00 415,418,074.89
4
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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 appropriation belongs to
the government grants with assets related and will amortized according to relevant assets depreciation.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel
engine for automobile: the Company received appropriated for the project in 2013 with 8.05 million
Yuan in line with documents of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao
[2013] No.104, Xi Cai Gong Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao [2014]
No.58, Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. Received RMB 3 million in
2014 and RMB 0.45 million in 2015; and belongs to government grant with assets concerned, and shall
be amortized according to the depreciation process.
(7) Research institute of motor vehicle exhaust after-treatment technology: in 2012, the subsidiary
Weifu Leader has applied for equipment purchase assisting funds to Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau for the vehicle exhaust after-treatment
technology research institute project. This declaration has been approved by Wuxi Huishan Science
and Technology Bureau and Wuxi Science and Technology Bureau in 2012, and the company has
received appropriation of 2.4 million Yuan in 2012, and received appropriation of 1.6 million Yuan in
2013. This appropriation belongs to government subsidies related to assets and will be amortized
according to the depreciation process.
(8) Fund of industry upgrade(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 11,339,130.36 Yuan amortize in the year.
(10) Fund of industry upgrade(2016): In accordance with the document Xi Xin Guan Jing Fa [2016]
No.585 and Xi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for
industry upgrading in 2016.
(11) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In
accordance with the document Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the
Company received a 9.74 million Yuan for the guiding capital of technical reform (1st batch) from
Wuxi for year of 2016, which included in the government subsidy with assets-concerned, and will
amortized according to the depreciation process after acceptance
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with
the document YCZ Fa[2016] NO.623 and “Strong Industrial Base Project Contract for year of 2016”,
subsidiary Weifu Tianli received a specific subsidy of 16.97 million Yuan (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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
depreciation process.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the
Intelligent Manufacturing Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal
subsidy of 3,000,000 Yuan was granted by relevant government authority in Huishan district to our
subsidiary Weifu Leader in 2017 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.
33. Share capital
In RMB/CNY
Change during the year(+,-)
Opening balance New shares Shares transferred Ending balance
Bonus share Other Subtotal
issued from capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
34. Capital reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium(Share capital premium) 3,370,828,806.22 3,370,828,806.22
Other capital reserve 45,193,988.92 45,193,988.92
Total 3,416,022,795.14 3,416,022,795.14
Other explanation, including changes in the period and reasons for changes: nil
35. Other comprehensive income
In RMB/CNY
Current period
Less: Less:
written in written in
other other
comprehen comprehe
sive nsive
Openi
Account income in income in Less : Belong to
ng Belong to Ending
Item before previous previous income minority
balanc parent company balance
income tax period and period and tax shareholders
e after tax
in the year carried carried expense after tax
forward to forward to
gains and retained
losses in earnings in
current current
period period
II. Other comprehensive income items
271,537.20 261,591.54 9,945.66 261,591.54
which will be reclassified subsequently
110
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
to profit or loss
Translation reserve 271,537.20 261,591.54 9,945.66 261,591.54
Total other comprehensive income 271,537.20 261,591.54 9,945.66 261,591.54
36. Reasonable reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 1,618,490.50 9,658,567.54 8,741,397.35 2,535,660.69
Total 1,618,490.50 9,658,567.54 8,741,397.35 2,535,660.69
37. 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
38. Retained profit
In RMB/CNY
Item Current period Last period
Retained profits at the end of last period before adjustment 10,996,945,870.13 9,811,609,138.92
Total retained profit at beginning of the adjustment (+ for increased,
-19,809,442.95
-for decreased)
Retained profits at the beginning of the period after adjustment 10,977,136,427.18 9,811,609,138.92
Add: The net profits belong to owners of patent company of this period 1,256,661,577.09 2,396,077,415.21
Common dividend payable 1,210,740,684.00 1,210,740,684.00
Impact earnings from other equity instrument investment disposal 36,147,694.44
Retained profit at period-end 11,059,205,014.71 10,996,945,870.13
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
19,809,442.95 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.
111
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
39.Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main operating 4,133,178,892.36 3,179,484,258.13 4,725,759,054.05 3,682,028,566.53
Other business 270,265,453.69 225,902,246.31 235,042,836.94 207,561,723.16
Total 4,403,444,346.05 3,405,386,504.44 4,960,801,890.99 3,889,590,289.69
Whether implemented the new revenue standards
□Yes √No
40. Operating tax and extras
In RMB/CNY
Item Current period Last Period
City maintaining & construction tax 12,840,319.07 15,131,214.76
Educational surtax 9,260,002.10 10,807,786.47
Property tax 7,976,886.64 7,130,285.13
Land use tax 3,000,765.60 3,243,530.28
Vehicle use tax 5,540.64 24,297.00
Stamp duty 1,349,389.57 1,578,877.86
Other taxes 101,668.04 84,360.90
Total 34,534,571.66 38,000,352.40
41. Sales expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 26,545,495.48 23,852,704.11
Consumption of office materials and business travel charge 5,902,212.14 5,767,944.92
Transportation charge 13,044,708.75 19,146,343.03
Warehouse charge 2,516,917.39 3,241,966.63
Three-guarantee fee 39,932,538.62 40,015,843.08
Business entertainment fee 9,328,770.85 8,251,206.32
Other 7,000,004.17 6,071,551.76
112
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Total 104,270,647.40 106,347,559.85
42. Administration expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 134,821,395.41 94,992,042.41
Depreciation charger and long-term assets amortization 17,239,939.30 24,091,878.82
Consumption of office materials and business travel charge 5,392,838.23 7,840,515.40
Incentive fund 35,940,000.00 64,279,800.00
Other 117,515,807.49 45,335,174.00
Total 310,909,980.43 236,539,410.63
43. R&D expenses
In RMB/CNY
Item Current period Last Period
Technological development expenses 180,167,642.16 177,443,968.15
Total 180,167,642.16 177,443,968.15
44. Financial expenses
In RMB/CNY
Item Current period Last Period
Interest expenses 9,264,648.42 9,075,955.05
Note discount interest expenses 6,867,326.37 409,282.24
Saving interest income -48,416,919.83 -11,684,097.62
Gains/losses from exchange 583,881.77 -491,644.75
Handling charges 2,208,267.69 913,596.71
Total -29,492,795.58 -1,776,908.37
45. Other income
In RMB/CNY
Source Current period Last Period
Government grants with routine activities concerned 17,632,117.95 14,032,459.71
113
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Total 17,632,117.95 14,032,459.71
46. Investment income
In RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based on equity 790,465,131.05 968,640,145.91
Investment income from holding tradable financial assets 2,287,308.59
Investment income from period of holding the financial assets
3,220,575.00
available for sale
Investment income obtained from disposal of financial assets
17,370,816.75
available for sales
Entrust financial income 95,464,240.84 159,801,630.73
Total 888,216,680.48 1,149,033,168.39
47. Income from change of fair value
In RMB/CNY
Sources Current period Last Period
Tradable financial assets 30,195,948.00
Investment income from disposal of tradable financial assets 490,329.13
Total 30,686,277.13
48. Credit impairment loss
In RMB/CNY
Item Current period Last Period
Bad debt loss of other account receivable -33,433.24
Bad debt loss of account receivable -6,204,357.51
Total -6,237,790.75
49. Assets impairment loss
Whether implemented the new revenue standards
□Yes √No
In RMB/CNY
Item Current period Last Period
I. Bad debt losses -2,192,563.70
114
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
II. Loss on inventory valuation -1,500,885.27 2,202,651.08
Total -1,500,885.27 10,087.38
50. Income from assets disposal
In RMB/CNY
Sources Current period Last Period
Income from disposal of non-current assets 5,542,556.91 1,820,229.59
Losses from disposal of non-current assets -434,708.46 -232,044.23
Total 5,107,848.45 1,588,185.36
51. Non-operating income
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Government grants 26,547,209.00 3,667,570.46 26,547,209.00
Other 997,548.26 213,558.41 997,548.26
Total 27,544,757.26 3,881,128.87 27,544,757.26
Government grants reckoned into current gains/losses:
In RMB/CNY
Whether the
Cause impact of
Granti Whether Assets
of Nature subsidies on
Government grants ng special Current period Last period related/Incom
distrib type the current
subject subsidies e related
ution profit and
loss
House land expropriation and
Income
disposal incentives of Weifu N N 26,547,209.00
related
Jinning
Income
Stabilization subsidy in Wuxi N N 967,170.46
related
Income
Patent funding N N 621,500.00
related
Funds for the intelligent
transformation project of common Income
N N 1,340,000.00
rail pump production in Huishan related
District
Reward for the high-tech N N 500,000.00 Income
115
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
enterprise identification in related
management committee of
Jiangbei District
Discount reward for imported Income
N N 103,000.00
equipment related
Employment subsidy from
Income
Employment Administration N N 86,520.00
related
Service of Ningbo City
Special funds for 333 high-end Income
N N 30,000.00
personnel training related
Income
Other N N 19,380.00
related
Total 26,547,209.00 3,667,570.46
52. Non-operating expense
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donations 43,500.00 43,500.00
Non-current assets disposal losses 180,170.75 167,094.34 180,170.75
Including: fixed assets disposal losses 180,170.75 167,094.34 180,170.75
Local fund 2,291,966.58 2,015,771.73
Other 115,815.69 145,006.31 115,815.69
Total 2,631,453.02 2,327,872.38 339,486.44
53. Income tax expense
(1) Income tax expense
In RMB/CNY
Item Current period Last Period
Payable tax in current period 52,525,690.93 102,952,291.92
Adjusted the previous income tax 3,839,633.55 -603,416.68
Increase/decrease of deferred income tax assets 20,543,454.34 633,939.20
Increase/decrease of deferred income tax liability 4,473,875.72 -55,516.48
Total 81,382,654.54 102,927,297.96
116
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Adjustment on accounting profit and income tax expenses
In RMB/CNY
Item Current period
Total profit 1,356,485,347.77
Income tax measured by statutory/applicable tax rate 203,472,802.17
Impact by different tax rate applied by subsidies 1,632,000.65
Adjusted the previous income tax 3,839,633.55
Impact by non-taxable revenue -122,975,551.11
Impact by the deductible losses of the un-recognized previous deferred income tax -3,707,613.33
The deductible temporary differences or deductible losses of the un-recognized deferred income
1,564,899.02
tax assets in the Period
Other -2,443,516.40
Income tax expense 81,382,654.54
54. Other comprehensive income
Found more in Note -35
55. Items of ash flow statement
(1) Other cash received in relation to operation activities
In RMB/CNY
Item Current period Last Period
Interest income from cash in bank 49,585,253.17 12,485,826.79
Government grants 33,827,547.71 8,212,570.46
Other 2,362,693.88 181,546.85
Total 85,775,494.76 20,879,944.10
(2) Other cash paid in relation to operation activities
In RMB/CNY
Item Current period Last Period
Cash cost 158,648,871.84 147,328,558.66
Other 10,439,746.86 6,641,913.18
Total 169,088,618.70 153,970,471.84
117
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(3) Cash received from other investment activities
Nil
(4) Cash paid related with investment activities
In RMB/CNY
Item Current period Last Period
Borrowings paid to Baodun (Tianjin) Electro-mechanical 10,000,000.00
Borrowings paid to Wuhan Troowin 24,000,000.00
Total 24,000,000.00 10,000,000.00
(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
5,470,000.00
Industry Group
Total 5,470,000.00
(6) Cash paid related with financing activities
In RMB/CNY
Item Current period Last Period
Borrowings/loans paid to Industry Group by Weifu Leader 5,470,000.00
National debt paid transfer to loans 339,091.00 339,091.00
Total 5,809,091.00 339,091.00
56. 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 1,275,102,693.23 1,577,947,078.01
Add: Assets impairment provision 7,738,676.02 -10,087.38
Depreciation of fixed assets, consumption of oil assets and depreciation of
150,680,275.86 142,796,801.99
productive biology assets
118
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Amortization of intangible assets 7,769,977.82 8,927,389.15
Amortization of long-term deferred expenses 1,498,822.02 1,093,846.42
Loss from disposal of fixed assets, intangible assets and other long-term
-5,107,848.45 -1,588,185.36
assets(gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 180,170.75 167,094.34
Gain/loss of fair value changes (gain is listed with “-”) -30,686,277.13
Financial expenses (gain is listed with “-”) 8,918,152.92 8,265,783.22
Investment loss (gain is listed with “-”) -885,938,793.49 -1,149,683,398.46
Decrease of deferred income tax asset( (increase is listed with “-”) 17,047,670.29 633,939.20
Increase of deferred income tax liability (decrease is listed with “-”) -55,516.90 -55,516.48
Decrease of inventory (increase is listed with “-”) 9,891,557.33 241,085,663.64
Decrease of operating receivable accounts (increase is listed with “-”) -802,107,175.59 -606,831,311.20
Increase of operating payable accounts (decrease is listed with “-”) 934,171,985.46 154,832,323.82
Other 1,219,538.11 1,342,269.57
Net cash flows arising from operating activities 690,323,908.25 378,923,690.48
2. Material investment and financing not involved in cash flow -- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 2,596,327,132.26 2,842,510,815.26
Less: Balance of cash equivalent at year-begin 2,404,674,139.49 2,948,439,354.22
Net increase of cash and cash equivalents 191,652,992.77 -105,928,538.96
(2) Net cash payment for the acquisition of a subsidiary in the period
In RMB/CNY
Amount
Cash and cash equivalent paid in the period for enterprise combination occurred in the period 54,936,420.00
Including: --
Less: Cash and cash equivalent held by subsidiary on purchasing date 5,005,683.38
Including: --
Add: Cash and cash equivalent paid in the period for enterprise combination occurred previous 0.00
Including: --
Net cash paid for subsidiary obtained 49,930,736.62
(3) Net cash received from the disposal of subsidiaries
Nil
119
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(4) Constitution of cash and cash equivalent
Item Ending balance Opening balance
I. Cash 2,596,327,132.26 2,404,674,139.49
Including: Cash on hand 71,791.03 194,161.03
Bank deposit available for payment at any time 2,596,255,341.25 2,404,479,978.46
I. Balance of cash and cash equivalents at the period-end 2,596,327,132.26 2,404,674,139.49
57. 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
58. Assets with ownership or use right restricted
In RMB/CNY
Item Ending book value Restriction reason
Monetary funds 52,783,679.85 A deposit paid for issuing a bank acceptance bill
Note receivable 762,571,527.45 Notes pledge for bank acceptance
Monetary funds 158,280.00 A deposit paid for issuance of a letter of guarantee
Monetary funds 38,774,365.26 Sales of equity of Protean Holdings Corp.
Monetary funds 1,655,119.95 Court freeze
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016)
Y03MC2492 of Guangdong Shenzhen Intermediate People's Court , the property
Tradable financial with the value of 217 million Yuan under the name of the Company and other seven
141,199,062.12
assets respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd. was
frozen. As of the end of the reporting period, 4.71 million shares of Miracle
Automation and 11,739,102 shares of SDEC held by the Company were frozen.
Total 997,142,034.63 --
59. Item of foreign currency
(1) Item of foreign currency
In RMB/CNY
Item Closing balance of foreign currency Rate of conversion Ending balance of RMB converted
Monetary funds -- --
Including: USD 26,561,237.88 6.8747 182,600,542.05
120
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
EUR 1,738,513.85 7.817 13,589,962.77
HKD 7,313.34 0.8797 6,433.55
DKK 29,426,919.41 1.0472 30,815,870.01
Account receivable -- --
Including: USD 3,330,199.22 6.8747 22,894,120.58
EUR 669,678.52 7.8170 5,234,876.99
HKD 10,720,574.00 0.8797 9,430,888.95
DKK 13,386,058.88 1.0472 14,017,880.86
Short-term borrowings -- --
Including: EUR 3,589,023.83 7.8170 28,055,399.28
Other account receivable -- --
Including: USD 1,527,205.77 6.8747 10,499,081.51
HKD 13,090,182.63 0.8797 11,515,433.66
Account payable --
Including: USD 37,466.64 6.8747 257,571.91
EUR 336,864.14 7.8170 2,633,266.98
HKD 21,899,376.00 0.063816 1,397,530.58
DKK 18,440,868.48 1.0472 19,311,277.48
(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
60. Hedging
Disclosure of the qualitative and quantitative information on hedging items and related hedging instruments, hedging
risks according to category: nil
61. Government grants
(1) Government grants
In RMB/CNY
Amount
reckoned in
Category Amount Item
current
gain/loss
121
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Social security subsidy for newly recruited Social security subsidy for newly recruited
college graduates by small and medium-size 95,577.00 college graduates by small and medium-size 95,577.00
enterprise in Ningbo City enterprise in Ningbo City
Patent funding 27,150.00 Patent funding 27,150.00
Depreciation/amortization compensation for the Depreciation/amortization compensation for the
assets newly established after parent company 11,339,130.36 assets newly established after parent company 11,339,130.36
relocated relocated
Intellectual property subsidy 318,000.00 Intellectual property subsidy 318,000.00
The first district-level cash subsidy of special The first district-level cash subsidy of special
90,432.00 90,432.00
fund for facilitates adjustment in Ningbo City fund for facilitates adjustment in Ningbo City
City-level funding for science and technology City-level funding for science and technology
project from management committee of 32,000.00 project from management committee of 32,000.00
high-tech industrial partk in Ningbo City high-tech industrial partk in Ningbo City
Subsidy for quality brand in Ningbo City 30,000.00 Subsidy for quality brand in Ningbo City 30,000.00
Industrialization project for injection VE pump Industrialization project for injection VE pump
system with electronically controlled high 721,000.30 system with electronically controlled high 721,000.30
pressure for less-emission diesel used pressure for less-emission diesel used
2018 technology development plan and project 2018 technology development plan and project
2,000.00 2,000.00
funding funding
Tax contribution award in Huishan District 30,000.00 Tax contribution award in Huishan District 30,000.00
Subsidy for the intelligent production line of Subsidy for the intelligent production line of
automobile components process in Huishan 293,406.11 automobile components process in Huishan 293,406.11
District District
Special funds for technological transformation Special funds for technological transformation
3,740,000.00 3,740,000.00
in Wuxi City in Wuxi City
Award for strong quality zone in Xinwu District 50,000.00 Award for strong quality zone in Xinwu District 50,000.00
Grants for key laboratory in Wuxi City 35,000.00 Grants for key laboratory in Wuxi City 35,000.00
Key laboratory (engineering center) of the Key laboratory (engineering center) of the
pollution control from motor vehicle exhausting 85,000.00 pollution control from motor vehicle exhausting 85,000.00
in Jiangsu province in Jiangsu province
Supporting funds for technical improvement for Supporting funds for technical improvement for
annual output as 140,000 pieces of packaging annual output as 140,000 pieces of packaging
129,500.00 129,500.00
line of catalytic reduction system for line of catalytic reduction system for
commercial vehicles commercial vehicles
Funds for technical improvement for annual Funds for technical improvement for annual
output as 180,000 pieces of catalytic reduction output as 180,000 pieces of catalytic reduction
59,000.00 59,000.00
system for commercial vehicles - received in system for commercial vehicles - received in
2015 2015
Funds for technical improvement for annual 57,777.78 Funds for technical improvement for annual 57,777.78
122
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
output as 180,000 pieces of catalytic reduction output as 180,000 pieces of catalytic reduction
system for commercial vehicles - received in system for commercial vehicles - received in
2016 2016
Funds for the automatic construction of welding Funds for the automatic construction of welding
39,964.69 39,964.69
production line machine replacement project production line machine replacement project
Condolence payments of government of the Condolence payments of government of the
20,000.00 20,000.00
Huishan District Huishan District
Award for the development of high and new Award for the development of high and new
100,000.00 100,000.00
technology technology
Other 337,179.71 Other 337,179.71
Total 17,632,117.95 Total 17,632,117.95
(2) Government grants rebate
□ Applicable √ Not applicable
62. Other
Nil
VIII. Changes of consolidation scope
1. Enterprise combine not under the same control
(1)Enterprise combine not under the same control occurred in the period
In RMB/CNY
Income of Net profit of
Standard to purchaser purchaser
Time point for Ratio of Acquired
Cost of equity Purchasing determine the from from
Purchaser equity equity way Equity
obtained date purchasing purchasing purchasing
obtained obtained obtained way
date date to date to
period-end period-end
Subject
IRD Fuel asset
2019-04-23 54,936,420.00 66.00% Purchasing 2019-04-23 6,274,812.54 -3,478,574.45
Cells A/S delivery
date
(2) Combination cost and goodwill
In RMB/CNY
123
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Combination cost IRD Fuel Cells A/S
--Cash 54,936,420.00
Total combination cost 54,936,420.00
Less: shares of fair value of identifiable net assets acquired 1,129,159.79
Goodwill/merger cost is less than the shares of fair value of identifiable net assets acquired 53,807,260.21
Determination method for fair value of the combination cost and contingent consideration and changes:
According to the agreement price confirmed
Main reasons for large goodwill resulted:
In 2019, the company established SPV (a wholly-owned subsidiary) in Denmark to acquire a 66% stake in Danish IRD
Fuel Cells A/S (hereinafter referred to as "IRD") held by FCCTApS., which is equivalent to a total of 7.26 million euros,
and CIRO's valuation is 11 million euros; goodwill is the part of the acquisition cost greater than the fair value of the
IRD net identifiable assets.
(3) Identifiable assets and liability on purchasing date under the purchaser
In RMB/CNY
IRD Fuel Cells A/S
Fair value on purchasing date Book value on purchasing date
Monetary funds 5,005,683.38 5,005,683.38
Account receivable 15,435,805.70 15,435,805.70
Inventory 10,402,853.98 10,402,853.98
Fixed assets 8,249,263.58 8,249,263.58
Intangible assets 484,979.88 484,979.88
Long-term deferred expenses 2,862,363.35 2,862,363.35
Account payable 40,730,101.70 40,730,101.70
Net assets 1,710,848.17 1,710,848.17
Less: Minority interests 581,688.38 581,688.38
Net assets acquired 1,129,159.79 1,129,159.79
Determination method for fair value of the identifiable assets and liabilities:
The book value on the balance sheet
Contingent liability of the purchaser bear during combination: Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing
date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained
124
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
control rights in the Period or not
□Yes √No
(5)On purchasing date or period-end of the combination, combination consideration or fair value
of identifiable assets and liability for the purchaser are unable to confirm rationally
(6) Other explanation
2. Enterprise combine under the same control
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Nil
5.Other reasons for consolidation range changed
Nil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Shareholding ratio
Name of Registered
operation Business nature Acquired by
subsidiary place Directly Indirectly
place
Spare parts of Enterprise combine under
Weifu Jinning Nanjing Nanjing 80.00%
internal-combustion engine the same control
Automobile exhaust purifier, Enterprise combine under
Weifu Leader Wuxi Wuxi 94.81%
muffler the same control
125
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Spare parts of
Weifu Mashan Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
Weifu Chang’an Wuxi Wuxi 100.00% Investment
internal-combustion engine
Weifu
Enterprise combine under
International Wuxi Wuxi Trade 100.00%
the same control
Trade
Spare parts of Enterprise combine not
Weifu ITM Wuxi Wuxi 100.00%
internal-combustion engine under the same control
Spare parts of
Weifu Schmidt Wuxi Wuxi 66.00% Investment
internal-combustion engine
Spare parts of Enterprise combine not
Weifu Tianli Ningbo Ningbo 54.23%
internal-combustion engine under the same control
Spare parts of Enterprise combine not
Weifu Autocam Wuxi Wuxi 51.00%
internal-combustion engine under the same control
Weifu Leader Automobile exhaust purifier,
Wuhan Wuhan 60.00% Investment
(Wuhan) muffler
Weifu
Automobile exhaust purifier,
Leader(Chongqi Chongqing Chongqing 100.00% Investment
muffler
ng)
Weifu
Automobile exhaust purifier,
Leader(Nanchan Nanchang Nanchang 100.00% Investment
muffler
g)
Enterprise combine under
SPV Denmark Denmark 100.00%
the same control
IRD Fuel Cells
Denmark Denmark Fuel cell components 66.00% Acquisition
A/S
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 on Wuxi Weifu Electric Drive Tech. Co., Ltd.
The Company holds 80% equity of Weifu Electric Drive; board of the Weifu Electric Drive has 5 directors, including 3
appointed by the Company; as for the important resolution of Weifu Electric Drive, the resolution can only be passed by
unanimous vote of all directors present, according to the above judges, the Company cannot control Weifu Electric
Drive, the investment for Electric Drive should be regarded as the investment in joint venture, which shall be accounted
by the equity method.
Major structured entity included in consolidate statement: nil
Basis of termination of agent or consignor: nil
126
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Important non-wholly-owned subsidiary
In RMB/CNY
Name of Share-holding Gains/losses attributable to Dividend announced to distribute Ending equity of
subsidiary ratio of minority minority in the Period for minority in the Period minority
Weifu Jinning 20.00% 14,876,923.21 209,198,242.07
Weifu Schmidt 34.00% -15,264.15 9,466,515.29
Weifu Leader 5.19% 2,153,562.30 86,957,134.33
Weifu Tianli 45.77% 1,473,959.13 107,685,585.63
Weifu Autocam 49.00% 1,134,650.94 144,760,990.56
Total 19,623,831.43 558,068,467.88
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
Name of
Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Weifu
1,070,400,181.05 325,848,559.23 1,396,248,740.28 297,272,709.50 49,462,676.40 346,735,385.90
Jinning
Weifu
91,597,165.04 48,907,335.05 140,504,500.09 112,265,804.31 112,265,804.31
Schmidt
Weifu
2,793,904,070.68 1,067,554,624.25 3,861,458,694.93 2,174,127,440.73 24,712,370.05 2,198,839,810.78
Leader
Weifu Tianli 360,273,239.11 213,757,480.69 574,030,719.80 309,722,212.42 38,486,184.05 348,208,396.47
Weifu
212,762,612.00 315,260,086.73 528,022,698.73 235,328,512.60 235,328,512.60
Autocam
Total 4,528,937,267.88 1,971,328,085.95 6,500,265,353.83 3,128,716,679.56 112,661,230.50 3,241,377,910.06
Opening balance
Name of
Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Weifu
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
Jinning
Weifu 92,342,474.64 48,855,179.90 141,197,654.54 112,913,283.31 112,913,283.31
127
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Schmidt
Weifu
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
Leader
Weifu
357,404,441.32 233,476,608.83 590,881,050.15 310,421,704.26 47,838,928.45 358,260,632.71
Tianli
Weifu
242,022,679.84 310,989,080.94 553,011,760.78 262,647,739.06 262,647,739.06
Autocam
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
In RMB/CNY
Current period Last Period
Cash flow Cash flow
Name of Total Total
Operation from Operation from
subsidiary Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Weifu 328,481,669. 75,516,399.5 75,516,399.5 33,455,248.4 345,257,893. 70,230,711.1 70,230,711.1 34,921,442.3
Jinning 39 7 7 0 56 8 8 1
Weifu 84,285,489.5 90,961,973.0 11,277,941.7
-45,675.45 -45,675.45 5,467,884.14 304,135.67 304,135.67
Schmidt 0 6 6
1,338,975,87 32,780,686.7 32,780,686.7 116,866,170. 1,589,176,18 76,364,083.4 76,364,083.4 -19,011,866.1
Weifu Leader
5.93 7 7 40 8.66 3 3 5
185,591,276. 37,008,735.0 196,673,863.
Weifu Tianli 3,549,640.03 3,549,640.03 8,293,196.15 8,293,196.15 -9,491,657.17
52 5 48
Weifu 177,929,684. 33,593,148.8 234,675,435. 22,670,547.1 22,670,547.1
2,330,164.41 2,330,164.41 3,466,284.14
Autocam 84 7 40 5 5
2,115,263,99 114,131,215. 114,131,215. 226,391,186. 2,456,745,35 177,862,673. 177,862,673. 21,162,144.8
Total
6.18 33 33 86 4.16 58 58 9
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the
enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated
financial statement range
Nil
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
2. Transaction that has owners equity shares changed in subsidiary but still with controlling
rights
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Shareholding ratio Accounting
treatment on
Main
Register investment for
Joint venture or associated enterprise operation Business nature
ed place Directly Indirectly joint venture and
place
associated
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst
Wuxi Wuxi Catalyst 49.00% Equity method
Co.,Ltd.
Wuxi Weifu Electric Drive Tech. Co., Ltd. Wuxi Wuxi Wheel-hub motor 80.00% Equity method
II. Associated enterprise
Bosch Automobile Diesel System Co., Internal-combustion
Wuxi Wuxi 32.50% 1.50% Equity method
Ltd. engine accessories
Zhonglian Automobile Electronic Co., Shangha Internal-combustion
Shanghai 20.00% Equity method
Ltd. i engine accessories
Weifu Precision Machinery Internal-combustion
Wuxi Wuxi 20.00% Equity method
Manufacturing Co., Ltd. engine accessories
Shinwell Automobile Tech. (Wuxi) Co.,
Wuxi Wuxi Automobile components 45.00% Equity method
Ltd.
Holding shares ratio different from the voting right ratio:
1. 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.
2. Explanation 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
129
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 2,247,248,921.76 2,524,886,121.93
Including: cash and cash equivalents 139,005,591.27 62,820,292.38
Non -current assets 306,699,383.10 312,633,597.82
Total assets 2,553,948,304.86 2,837,519,719.75
Current liabilities 1,348,578,184.48 1,658,404,950.50
Non-current liabilities 27,350,000.00 24,735,000.00
Total liabilities 1,375,928,184.48 1,683,139,950.50
Shareholders’ equity attributable to parent company 1,178,020,120.33 1,154,379,769.25
Share of net assets calculated by shareholding ratio 577,229,858.97 565,646,086.93
Book value of equity investment in joint ventures 577,229,858.97 565,646,086.93
Operation income 1,590,675,320.87 1,864,398,010.43
Financial expenses 40,646,719.18 47,189,696.29
Income tax expense 4,391,396.50 3,251,620.98
Net profit 23,640,351.13 92,057,072.82
Total comprehensive income 23,640,351.13 92,057,072.82
(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
10,553,293,855.65 688,825,448.29 293,992,324.65 10,042,409,061.04 153,125,575.56 281,266,308.21
assets
Non -current
2,621,795,993.79 5,478,754,404.78 147,235,301.51 2,756,104,679.18 5,277,976,705.66 133,470,007.84
assets
Total assets 13,175,089,849.44 6,167,579,853.07 441,227,626.16 12,798,513,740.22 5,431,102,281.22 414,736,316.05
Current
5,175,720,137.18 527,845,052.68 141,337,604.50 4,100,048,133.30 2,999,283.95 135,365,421.92
liabilities
Non-current 2,729,313.74 2,759,548.45
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
liabilities
Total
5,175,720,137.18 530,574,366.42 141,337,604.50 4,100,048,133.30 5,758,832.40 135,365,421.92
liabilities
Attributable
to parent
company 7,999,369,712.26 5,637,005,486.65 302,709,734.20 8,698,465,606.92 5,425,343,448.82 279,370,894.13
shareholders
’ equity
Share of net
assets
calculated
2,719,785,702.17 1,127,401,097.32 60,541,946.84 2,957,478,306.35 1,085,068,689.76 55,874,178.83
by
shareholding
ratio
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized
profit of
-20,628,815.49 -41,334.69 -18,144,174.02 -34,986.88
internal
trading
--Other -0.28 -529,034.03 -0.28 -529,034.05
Book value
of equity
investment 2,966,945,647.75 1,128,808,363.29 59,971,578.12 3,207,122,893.40 1,086,475,955.72 55,310,157.90
in associated
enterprise
Operation
7,690,808,970.61 11,298,817.88 144,654,208.76 8,713,485,959.51 12,091,114.45 190,093,280.56
income
Net profit 1,827,071,096.33 737,662,037.83 23,338,840.07 2,076,330,091.90 1,059,760,956.40 34,760,623.80
Total
comprehensi 1,827,071,096.33 737,662,037.83 23,338,840.07 2,076,330,091.90 1,059,760,956.40 34,760,623.80
ve income
Dividends
received
from
429,448,388.47 105,200,000.00 303,884,540.74
associated
enterprise in
the year
Other explanation
adjustment item for other “-0.28”: the differential tail
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(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 53,565,625.43 54,742,375.02
Amount based on share-holding ratio -- --
--Net profit -1,176,749.59
--Other comprehensive income -1,176,749.59
Associated enterprise: -- --
Total book value of investment 6,226,237.91 7,476,477.77
Amount based on share-holding ratio -- --
--Net profit -1,250,239.86
--Other comprehensive income -1,250,239.86 54,742,375.02
(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
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
6. Other
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
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
receivables.
The maximum credit risk exposure of the Company is the book amount of such financial assets, till
end of 30th June 2019, lists of the maximum credit risk exposure of the Company are as:
Item Amount of merge Amount of parent company
Note receivable 2,319,307,654.58 766,756,661.80
Other account receivable -Other account receivable 60,433,069.23 195,451,736.76
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 machinery equipment purchasing of parent company and Autocam, material
purchasing of parent company and paying the technical service fee and trademark usage charge and the
import and export trading of Weifu International Trade, other main business of the Company are
pricing and settle with RMB (Yuan). In consequence of the foreign financial assets and liabilities takes
minor ratio in total assets, the Company has small FX risk of the financial instrument, considered by
management of the Company.
End as 30 June 2019, 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 30 June 2019:
Ending RMB balance
Item Ending foreign currency balance Convert rate Ratio in assets(%)
converted
Monetary funds -- --
Including: USD 26,561,237.88 6.8747 182,600,542.05 0.82%
134
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
EUR 1,738,513.85 7.8170 13,589,962.77 0.06%
HKD 7,313.34 0.8797 6,433.55 0.00%
DKK 29,426,919.41 1.0472 30,815,870.01 0.14%
Account receivable -- --
Including: USD 3,330,199.22 6.8747 22,894,120.58 0.10%
EUR 669,678.52 7.8170 5,234,876.99 0.02%
HKD 10,720,574.00 0.8797 9,430,888.95 0.04%
DKK 13,386,058.88 1.0472 14,017,880.86 0.06%
Other account receivable -- --
Including: USD 1,527,205.77 6.8747 10,499,081.51 0.05%
HKD 13,090,182.63 0.8797 11,515,433.66 0.05%
Total ratio in assets -- -- 1.35%
②Foreign currency liability of the Company till end of 31st December 2018:
Ending foreign currency Ending RMB balance
Item Convert rate Ratio in assets(%)
balance converted
Short-term borrowings -- --
Including: EUR 3,589,023.83 7.8170 28,055,399.28 0.48%
Account payable -- --
Including: USD 37,466.64 6.8747 257,571.91 0.00%
EUR 336,864.14 7.8170 2,633,266.98 0.05%
JPY 21,899,376.00 0.063816 1,397,530.58 0.02%
DKK 18,440,868.48 1.0472 19,311,277.48 0.33%
Total ratio in assets -- -- 0.89%
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 by the 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.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(i) Tradable financial assets 151,261,956.00 151,261,956.00
1.Financial assets measured by fair value and with variation
151,261,956.00 151,261,956.00
reckoned into current gains/losses
(2) Equity instrument investment 151,261,956.00 151,261,956.00
Total liability sustaining measured by fair value 151,261,956.00 151,261,956.00
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
30 June 2019, the financial assets available for sale-equity instrument investment held by the Company
refers to the SDEC (stock code: 600841) and Miracle Automation (Stock code: 002009), determining
basis of the market price at period-end refers to the closing price of 28 June 2019, the 29 June 2019
and 30 June 2019 are nonworking days.
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registered place Business nature Registered capital on the enterprise for
the enterprise
parent company
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 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 Whether more than
Approved
Related party related Current period the transaction limit Last Period
transaction limit
transaction (Y/N)
137
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Weifu Precision Machinery Goods 12,828,147.72 40,000,000.00 N 22,934,380.54
Bosch Diesel System Goods 8,332,723.32 60,000,000.00 N 29,375,329.74
Weifu Environment Goods 675,657,317.56 2,000,000,000.00 N 946,283,103.47
Robert Bosch Company Goods 66,801,410.90 130,000,000.00 N 62,350,113.72
Goods sold/labor service providing
In RMB/CNY
Related party Content of related transaction Current period Last Period
Weifu Precision Machinery Goods and labor 661,932.69 2,772,785.47
Bosch Diesel System Goods and labor 1,487,822,558.90 1,600,013,496.75
Weifu Environment Goods and labor 10,231,437.30 28,741,766.37
Robert Bosch Company Goods and labor 309,791,012.66 319,461,744.57
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor:
In RMB/CNY
Lease income recognized in the Lease income recognized at last
Lessee Assets type
Period Period
Weifu Environment Workshop 1,254,028.50 1,254,028.50
As a tenant: nil
(4) Related guarantee
Nil
(5) Related party’s borrowed/lending funds
In RMB/CNY
Related party Loan amount Start date Maturity Note
Borrowing
Wuxi Industry Group 5,470,000.00 2018-02-13 2019-02-12 Return by Weifu Leader
Funds lent
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(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 2,570,000.00 2,400,000.00
(8) Other related transactions
Item Related party Current period Last Period
Purchase of fixed assets Bosch Diesel System 5,720,900.23 42,735.04
Technology royalties paid etc. Robert Bosch Company 1,122,250.34 2,805,114.55
Technology royalties paid etc. Bosch Diesel System 1,002,714.76
Sales of fixed assets Weifu Environment 10,485,153.25
6. Receivable/payable items of related parties
(1)Receivable item
In RMB/CNY
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
reserve reserve
Account receivable Weifu Precision Machinery 197,525.88 77,477.41
Account receivable Bosch Diesel System 447,801,217.87 420,746,170.76
Account receivable Robert Bosch Company 122,663,619.56 132,830,976.56
Other account receivable Robert Bosch Company 12,285,081.81
Account received in advance Robert Bosch Company 27,359.50
Account paid in advance Robert Bosch Company 3,255.11
Account receivable Weifu Environment 8,491,872.63 1,233,580.22
Account received in advance Weifu Environment 184,592.07
Account paid in advance Bosch Diesel System 1,057,272.58
139
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(2) Payable item
In RMB/CNY
Item Related party Ending book balance Opening book balance
Account payable Weifu Precision Machinery 8,166,482.16 7,941,418.36
Account payable Weifu Environment 518,192,336.60 337,307,634.70
Account payable Bosch Diesel System 12,463,997.06 24,743,403.24
Account payable Robert Bosch Company 21,408,603.28 5,170,470.70
Accounts received in advance Robert Bosch Company 754,552.15
Account paid in advance Robert Bosch Company 21,000,000.00
Other accounts payable Wuxi Industry Group 5,476,678.00
Account paid in advance Wuxi Industry Group 48,828.87
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Guarantees to subsidiary
Guarantee amount Whether
Guarantee
Guarantee provided Debit bank (in 10 thousand Starting from Terminated dated guarantee
received
Yuan) implemented or
140
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
not (Y/N)
Weifu Jiangbei branch of
High-Technology Weifu Tianli Bank of China in 3,750.00 2016-11-15 2021-11-10 N
Group Co., Ltd. Ningbo
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
141
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 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 V
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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
or possession and
Product segment Product segment Product segment disposal income,
of automobile of automotive of air the retained assets Offset of segment
Item Total
fuel injection post processing management or gains/losses as
system system system the financial
assets available
for sale or
possession and
disposal income
Operating income 2,887,472,034.84 1,338,975,875.93 249,872,942.78 72,876,507.50 4,403,444,346.05
Operating cost 2,106,502,659.22 1,184,686,948.46 186,025,785.22 71,828,888.46 3,405,386,504.44
Total Profit 409,096,576.45 18,760,424.74 13,369,919.27 916,625,070.62 1,366,643.31 1,356,485,347.77
Net profit 359,669,021.43 13,213,081.52 13,099,724.16 889,978,914.91 858,048.78 1,275,102,693.23
Total assets 22,334,489,303.8
9,432,703,846.25 3,130,358,394.74 810,868,051.46 9,964,372,961.66 1,003,813,950.29
2
Total liabilities 3,531,209,246.64 2,198,839,810.78 469,855,219.61 433,784,945.50 5,766,119,331.53
(3) If there are no segment in the Company, or the total assets and liabilities of the segment are
un-able to disclosed, explain the reasons
Not applicable
7. Major transaction and events makes influence on investor’s decision
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Category of account receivable
In RMB/CNY
143
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
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 bad debt 6,800,00 6,800,00 7,000,000 7,000,000
0.87% 100.00% 0.93% 100.00%
provision accrual on 0.00 0.00 .00 .00
a single basis
Including:
Including: Account
receivable with
single significant
6,800,00 6,800,00 7,000,000 7,000,000
amount and 0.87% 100.00% 0.93% 100.00%
0.00 0.00 .00 .00
withdrawal bad debt
provision on single
basis
Account receivable
with bad debt 772,349, 5,592,52 766,756,6 745,766,0 3,519,019 742,246,99
99.13% 0.72% 99.07% 0.47%
provision accrual on 191.61 9.81 61.80 10.32 .33 0.99
portfolio
Including:
Account receivable
with bad debt 617,175, 5,592,52 611,334,6 575,890,7 3,519,019 572,371,75
79.21% 0.91% 76.50% 0.61%
provision accrual on 959.31 9.81 04.28 71.39 .33 2.06
age analysis
155,173, 155,422,0 169,875,2 169,875,23
Related party 19.92% 22.57%
232.30 57.52 38.93 8.93
779,149, 12,392,5 766,756,6 752,766,0 10,519,01 742,246,99
Total 100.00% 100.00% 1.40%
191.61 29.81 61.80 10.32 9.33 0.99
Accrual bad debt reserve on single basis: 6,800,000.00 Yuan
In RMB/CNY
Ending balance
Item
Book balance Bad debt reserve Accrual ratio Accrual causes
BD bills 6,800,000.00 6,800,000.00 100.00% Have difficulty in collection
Total 6,800,000.00 6,800,000.00 -- --
Bad debt reserve accrual by portfolio:5,592,529.81 Yuan
In RMB/CNY
144
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Ending balance
Item
Book balance Bad debt reserve Accrual ratio
Account receivable with bad debt provision
617,175,959.31 5,592,529.81 0.91%
accrual on age analysis
Total 617,175,959.31 5,592,529.81 --
Explanation on portfolio determines:
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
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Ending balance
Within one year(One year included) 610,306,392.05
Within 6 months 589,618,490.41
6 months to one year 20,687,901.64
1-2 years 3,713,401.89
2-3 years 625,176.83
Over 3 years 2,530,988.54
3-4 years 2,530,988.54
Total 617,175,959.31
(2) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Ending balance
Accrual Collected or reversal Written-off
Bad debt reserve of
10,519,019.33 2,081,075.48 200,000.00 7,565.00 12,392,529.81
account receivable
Total 10,519,019.33 2,081,075.48 200,000.00 7,565.00 12,392,529.81
Including major amount bad debt provision that collected or reversal in the period:
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
In RMB/CNY
Enterprise Amount collected or reversal Collection by
BD bills 200,000.00 Collected
Total 200,000.00 --
(3) Account receivable actually written-off in the period
In RMB/CNY
Item Amount written-off
Retail enterprise 7,565.00
Including major account receivable written-off: nil
(4) Top 5 account receivables at ending balance by arrears party
Total receivables collected by arrears party for the Period amounting to 562,914,456.50 Yuan, takes
72.25 percent in closing balance of the account receivables; 638,572.32 Yuan are accrual
correspondingly for bad debt reserves.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other account receivable
In RMB/CNY
Item Ending balance Opening balance
Interest receivable 30,570.83 188,682.78
Dividend receivable 517,216,193.24
Other account receivable 195,451,736.76 196,660,409.35
Total 712,698,500.83 196,849,092.13
(1) Interest receivable
1) Category of interest receivable
In RMB/CNY
146
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Item Ending balance Opening balance
Interest receivable from unified loan and return 30,570.83 188,682.78
Total 30,570.83 188,682.78
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
In RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
SDEC 610,417.20
Guolian Securities Co., Ltd. 903,640.00
Zhonglian Electronic 105,200,000.00
Bosch Automobile Diesel 410,502,136.04
Total 517,216,193.24
2) Important dividend receivable with account age over one year Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(3) Other account receivable
1) Other account receivable by nature
In RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 34,499,081.51
Balance of related party in the consolidate scope 148,552,615.72 196,047,735.72
Receivable from the tax refund for withholding the B-share 11,515,433.66
Staff loans and petty cash 904,908.09 605,473.63
Other 7,200.00
Total 195,472,038.98 196,660,409.35
2) Accrual of bad debt provision
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit losses Total
the entire duration (without the entire duration (with
over next 12 months
credit impairment occurred) credit impairment occurred)
147
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Current accrual 20,302.22 20,302.22
Balance on Jun. 30, 2019 20,302.22 20,302.22
Major change of book value for the loss impairment in the period
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Ending balance
Within one year(One year included) 20,302.22
Within 6 months
6 months to one year 20,302.22
Total 20,302.22
3) Bad debt provision accrual, collected or reversal in the period:
Bad debt provision accrual was 20,302.22 Yuan; the amount collected or switches back amounting to 0 Yuan.
4) Other account receivable actually written-off in the period: nil
5) Top 5 other receivables at ending balance by arrears party: nil
In RMB/CNY
Ending
Ratio in total ending balance
Enterprise Nature Ending balance Account age balance of other of bad
receivables debt
reserve
Balance of related party in Within 6
Wuxi Weifu Chang’an Co., Ltd. 90,000,000.00 46.04%
the consolidate scope months
Balance of related party in Within 6
Weifu Mashan Pump Glib Co., Ltd. 34,552,615.72 17.68%
the consolidate scope months
Wuxi Weifu Schmidt Power System Balance of related party in Within 6
24,000,000.00 12.28%
Spare Parts Co., Ltd. the consolidate scope months
Troowin Power System Technology Within 6
Intercourse funds of unit 24,000,000.00 12.28%
Co., Ltd. months
Receivable from the tax
Receivable from the tax refund for Within 6
refund for withholding the 11,515,433.66 5.89%
withholding the B-share months
B-share
Total -- 184,068,049.38 -- 94.17%
6) Account receivable with government grand involved: 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
3. Long-term equity investment
In RMB/CNY
148
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
1,548,768,117.88 1,548,768,117.88 1,466,611,689.17 1,466,611,689.17
subsidiary
Investment for
associates and joint 4,088,758,277.53 4,088,758,277.53 4,272,498,737.38 4,272,498,737.38
venture
Total 5,637,526,395.41 5,637,526,395.41 5,739,110,426.55 5,739,110,426.55
(1)Investment for subsidiary
In RMB/CNY
Provision for Ending balance of
Current
The invested entity Opening balance Current increased Ending balance impairment in the impairment
decreased
period provision
Weifu Jinning 178,639,593.52 178,639,593.52
Weifu Leader 460,113,855.00 460,113,855.00
Weifu Mashan 168,693,380.51 168,693,380.51
Weifu Chang’an 220,902,037.30 220,902,037.30
Weifu
32,849,254.85 32,849,254.85
International Trade
Weifu ITM 167,000,000.00 167,000,000.00
Weifu Schmidt 50,160,000.00 50,160,000.00
Weifu Tianli 105,799,100.00 105,799,100.00
Weifu Autocam 82,454,467.99 82,454,467.99
SPV 82,156,428.71 82,156,428.71
Total 1,466,611,689.17 82,156,428.71 1,548,768,117.88
(2) Investment for associates and joint venture
In RMB/CNY
Current changes (+,-) Endin
g
Other
Other balan
Additi Capit Investment compreh Cash dividend Provisi
equit Ot ce of
Enterprise Opening balance onal al gain/loss ensive or profit on for Ending balance
y he impai
invest reduc recognized income announced to impair
chan r rment
ment tion under equity adjustme issued ment
ge provi
nt
sion
I. Joint venture
Wuxi
Weifu 54,742,375.02 -1,176,749.59 53,565,625.43
Electric
149
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
Drive
Tech. Co.,
Ltd.
Subtotal 54,742,375.02 -1,176,749.59 53,565,625.43
II. Associated enterprise
Bosch
Automobi
le Diesel 3,076,037,410.12 591,431,846.91 821,004,272.08 2,846,464,984.95
System
Co., Ltd.
Zhonglian
Automobi
le 1,086,475,955.72 147,532,407.57 105,200,000.00 1,128,808,363.29
Electronic
Co., Ltd.
Weifu
Precision
Machiner
y 55,242,996.52 4,676,307.34 59,919,303.86
Manufact
uring Co.,
Ltd.
Subtotal 4,217,756,362.36 743,640,561.82 926,204,272.08 4,035,192,652.10
Total 4,272,498,737.38 742,463,812.23 926,204,272.08 4,088,758,277.53
(3) Other explanation
4. Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main business 1,895,457,557.71 1,303,140,646.02 2,136,258,034.82 1,533,313,082.59
Other business 197,016,902.53 168,830,868.68 178,884,620.31 165,203,440.31
Total 2,092,474,460.24 1,471,971,514.70 2,315,142,655.13 1,698,516,522.90
Whether implemented the new revenue standards
□Yes √No
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无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
5. Investment income
In RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based on cost 62,418,400.00
Income of long-term equity investment calculated based on equity 742,463,812.23 894,788,126.54
Investment income from period of holding the tradable financial assets 2,287,308.59
Investment income from period of holding the financial assets available for sale 3,220,575.00
Investment income obtained from disposal of financial assets available for sale 17,370,816.75
Entrust financial income 95,464,240.84 159,552,310.73
Total 840,215,361.66 1,137,350,229.02
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 4,927,677.70
Governmental subsidy reckoned into current gains/losses (not including the 含 House land expropriation
subsidy enjoyed in quota or ration according to national standards, which are 44,179,326.95 and disposal incentives of
closely relevant to enterprise’s business) Weifu Jinning
Profit and loss of assets delegation on others’ investment or management 95,464,240.84
Held transaction financial asset, gains/losses of changes of fair values from
transaction financial liabilities, and investment gains from disposal of
transaction financial asset, transaction financial liabilities and financial asset 30,686,277.13
available for sales, exclude the effective hedging business relevant with
normal operations of the Company
Switch back of provision for depreciation of account receivable and contract
200,000.00
assets which was singly taken depreciation test
Other non-operating income and expenditure except for the aforementioned
838,232.57
items
Less: Impact on income tax 26,626,210.20
Impact on minority shareholders’ equity 7,102,792.64
Total 142,566,752.35 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit
151
无锡威孚高科技集团股份有限公司 2019 年半年度财务报告
(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
2. REO and earnings per share
Earnings per share
Weighted
Profits during report period Basic earnings per share Diluted earnings per
average ROE
(RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the
7.60% 1.25 1.25
Company
Net profits belong to common stock stockholders of the
6.73% 1.10 1.10
Company after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for
the differences adjustment audited by foreign auditing institute, listed name of the institute
Not applicable
4. Other
Ni
152
