无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Weifu High-Technology Group Co., Ltd.
Semi-Annual Report 2019
August 2019
1
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of
accounting works and Ou Jianbin, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2019
Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
In this report, details of relevant risks and countermeasures in operation have
described, found more in relevant content in the Report. Concerning the
forward-looking statements with future planning involved in the Report, they do
not constitute a substantial commitment for investors. The China Securities
Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website
（www.cninfo.com.cn）are the information disclosure media appointed by the
Company, all information should be prevail on the above mentioned media,
investors are advice to pay attention on investment risks.
The Company has no plan of cash dividend distributed, no cash bonus and
capitalizing of common reserves either carried out.
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Contents
Section I Important Notice, Contents and Paraphrase ................................................................. 2
Section II Company Profile and Main Financial Indexes ............................................................. 5
Section III Summary of Company Business .................................................................................. 8
Section IV Discussion and Analysis of Operation ........................................................................ 11
Section V Important Events .......................................................................................................... 19
Section VI Changes in shares and particular about shareholders............................................... 30
Section VII Preferred Stock……………………………………………………………………….34
Section VIII Particulars about Directors, Supervisors and Senior Executives…. ..................... 35
Section IX Corporate Bonds ........................................................................................................... 36
Section X Financial Report ............................................................................................................. 37
Section XI Documents Available for Reference ........................................................................... 185
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Paraphrase
Items Refers to Contents
Company, The Company, Weifu
Refers to Weifu High-Technology Group Co., Ltd.
High-technology
Weifu Group Refers to Wuxi Weifu Group Co., Ltd.
Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Robert Bosch, Robert Bosch Company Refers to Robert Bosch Co., Ltd, ROBERT BOSCH GMBH
Bosch Automobile Diesel, Bosch Diesel
Refers to Bosch Automobile Diesel System Co., Ltd.
System
Weifu Leader Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
Weifu Jinning Refers to Nanjing Nanjing Weifu Jinning Co., Ltd. Co., Ltd.
Weifu Environment Refers to Wuxi Weifu Environment Catalyst Co., Ltd.
Weifu Precision Machinery Refers to Weifu Precision Machinery Manufacturing Co., Ltd.
SPV Refers to Weifu Holding Aps
IRD Refers to IRD Fuel Cells A/S
Zhonglian Electronic Refers to Zhonglian Automobile Electronic Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
Reporting period Refers to 1 January 2019 to 30 June 2019
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Weifu High- Tech, Su Weifu-B Stock code 000581, 200581
Stock exchange for listing Shenzhen Stock Exchange
Chinese name of the Company 无锡威孚高科技集团股份有限公司
Short form of the Company in
威孚高科
Chinese (if applicable)
Foreign name of the Company
WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
(if applicable)
Short form of foreign name of
WFHT
the Company (if applicable)
Legal representative Chen Xuejun
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Weixing Yan Guohong
Contact add. No.5, Huashan Road, Xin Wu District, Wuxi City No.5, Huashan Road, Xin Wu District, Wuxi City
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2018.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2018.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Current period Same period of last year Changes over last year
Operating income (RMB) 4,403,444,346.05 4,960,801,890.99 -11.24%
Net profit attributable to shareholders of
1,256,661,577.09 1,545,242,704.92 -18.68%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 1,114,094,824.74 1,378,865,501.57 -19.20%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
690,323,908.25 378,923,690.48 82.18%
activities (RMB)
Basic earnings per share (RMB/Share) 1.25 1.53 -18.30%
Diluted earnings per share (RMB/Share) 1.25 1.53 -18.30%
Weighted average ROE 7.60% 9.92% -2.32%
Changes over period-end of last
Period-end Period-end of last year
year
Total assets (RMB) 22,334,489,303.82 20,892,041,460.30 6.90%
Net assets attributable to shareholder of
15,997,076,128.08 15,913,828,778.82 0.52%
listed company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
4,927,677.70
accrued for impairment of assets)
Including the house land
Governmental subsidy reckoned into current gains/losses (not including the
expropriation and
subsidy enjoyed in quota or ration according to national standards, which are 44,179,326.95
disposal incentives of
closely relevant to enterprise’s business)
Weifu Jingning
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 available for 30,686,277.13
sales, exclude the effective hedging business relevant with normal operations of
the Company
Switch back of provision for depreciation of account receivable which was singly
200,000.00
taken depreciation test
Other non-operating income and expenditure except for the aforementioned items 838,232.57
Less: Impact on income tax 26,626,210.20
Impact on minority shareholders’ equity (post-tax) 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 (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
1. The Company belongs to auto parts industry, and its main business products include diesel fuel injection system
products, exhaust after-treatment system products and air management system products.
2. Main uses of the Company's products
(1) The diesel fuel injection system products are widely used in different power diesel engines supporting all types
of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only makes
products matching with the main engines used at home but also exports some products to the Americas, Southeast
Asia, and the Middle East. The products meet the needs of national emission standards.
(2) The auto exhaust after-treatment system products: mainly support the major manufacturers of automobile,
motorcycle and general machinery at home which meet the national emission standards.
(3) The intake system products (supercharger): matches with most of the domestic small-bore diesel engine plants
and some six-cylinder diesel engine manufacturers, and meet the needs of the light and heavy commercial
vehicles and some passenger cars, and meets the national emission standards.
3. Business model of the Company
The Company follows the operating philosophy of making competitive products, creating famous brands, striving
for first choices, and creating value for the users, implements the business model that parent company unifies the
management and subsidiaries decentralize the production. Namely, the group company is responsible for making
strategic development planning and operation targets, and making the unified management, instruction and
assessment for the finance, significant personnel management, core raw materials, quality control, and technology
of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which
makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the Company’s main business and business model have no significant changes.
II. Major changes in main assets
1. Major changes in main assets
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Major assets Note of major changes
Equity assets No major change
Fixed assets No major change
Intangible assets No major change
Construction in progress The increase of investment in equipment for technology reformation
2. Main overseas assets
√Applicable □ Not applicable
The Whether
proportion there are
Specific Control measures Incom
Locati Operatio of overseas significan
content of the Cause of formation Asset size to guarantee asset e
on n model assets to the t risks of
asset security status
company’s impairme
net assets nt?
The In order to accelerate the The company
Company cultivation of the company's invested 7.26
established new business growth point and million and
SPV (a accelerate the transformation gained control
wholly-owne and upgrading of the company, of IRD Fuel
d subsidiary) the 4th meeting of the Ninth Cells A/S.
in Denmark Board of Directors reviewed The Company will
to acquire a and approved the “Proposal on pay full attention
66% stake in the Company's Foreign to changes in the
Danish IRD Investment”. The company industry and the
Holding
Fuel Cells established SPV (a Denm market, give play
subsidiar N/A 0.57% No
A/S wholly-owned subsidiary) in ark to its own
y
(hereinafter Denmark to acquire a 66% advantages, and
referred to as stake in the Danish IRD with actively prevent
“IRD”) with 7.26 million euros and resolve
7.26 million various risks.
euros (IRD's
valuation of
11 million
euros).
III. Core Competitiveness Analysis
The Company is a high technology enterprise with a number of patented technologies. For years, based on the
scientific research as National Enterprise Technical Center, Post-doctor Scientific Research Station, Jiangsu
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Provincial Engineering and Technology Research Center and Industrialization Base of National Hi-Tech Research
and Development Achievement, we have become the backbone enterprise of the core parts of domestic
automobile (power engineering) after 60 years of cultivation. 80% of the current core business of auto parts are
matching with electronic control system and with electronic control realized, which owes a leading position in
self-owned brand.
The company lays emphasis on the manufacturing quality management, relies on WPS (Weifu production system)
and manufacturing information platform with Weifu characteristics to continuously improve the production
system structure, personnel organization, operation mode and market supply and demand relationship, and
continues to carry out the process quality indicator quantitative management and process management, and
improve production efficiency, product quality and product delivery capabilities, and the company’s
manufacturing quality control capabilities are further improved.
The company pays attention to the business operation quality of and lays emphasis on the resource integration. At
present, the company has established a high-speed, stable and reliable network environment and an efficient data
center, successfully built the ERP platform, opened up the value chain, and realized the integration of financial
services, which made the information resources fully shared, and the company’s comprehensive operational
management level has been further improved.
The company pays attention to the construction of core talent system. At present, it has built a relatively complete
human resource management platform to strive to build a high-quality core talent team, which provides a strong
human resource guarantee for the long-term development of the company.
Core competitiveness of the Company has no major changes in the Period.
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section IV. Discussion and Analysis of Operation
I. Overview
In the first half of 2019, the auto market was generally running at a low level, with a double-digit decline in the
first half of the year. In the face of severe market conditions, the company faced difficulties and strived to seize
market opportunities, took advantage of the trend, strengthened internal management, paid attention to risk
management and control, and strive to ensure the stability of the company's overall economic operation. During
the period, the Company achieved an operation revenue of 4.4 billion Yuan with a y-o-y decrease of 11.24%;
profit amounted to 1.356 billion Yuan, a decrease of 19.3% from a year earlier; the net profit attributable to
owners of parent company amounted as 1.257 billion Yuan, a decrease of 18.68% over same period of last year.
Main work in the first half of the year
1. Figure out the situation, face difficulties, seek opportunities, strive to open up markets, focus on production and
delivery, strive to maintain market share of key products, and ensure the continuous stability of related product
markets. In the first half of the year, the production and sales volume of common rail pumps exceeded 900,000
units;
2. Focus on management quality, make full use of interconnection technologies, strengthen data interconnection and
interoperability, and further enhance the abilities of data collection, analysis and prediction. Continuously improve
manufacturing process management, strengthen flexible and agile production, and realize intelligent deployment
capability of manufacturing process; continuously promote internal management of the company, sort out
management duties, upgrade and optimize standardization of system processes, and optimize organization;
strengthen the group information system security construction, continuously promote the construction of business
project information management platform, and promote the financial sharing center construction, the procurement
sharing platform project construction and the human resources management system platform construction.
Constantly enhance the foundation of the company's development.
3. In order to accelerate the cultivation of the company's new business growth point and accelerate the
transformation and upgrading of the company, the company established SPV (a wholly-owned subsidiary) in
Denmark to acquire a 66% stake in Danish IRD Fuel Cells A/S held by FCCT ApS, equivalent to 7.26 million
euros. By acquiring the equity of IRD, the company achieved the control of IRD, which is conducive to enhancing
the company's competitiveness in the new energy business market and in line with the company's development
strategy, and lays a good foundation for the company's sustainable, rapid and healthy development and
transformation and upgrading.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Operation”
Change of main financial data on a y-o-y basis
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
In RMB
Same period of last y-o-y changes
Current period Reasons
year (+,-)
Operation income 4,403,444,346.05 4,960,801,890.99 -11.24%
Operation cost 3,405,386,504.44 3,889,590,289.69 -12.45%
Sales expenses 104,270,647.40 106,347,559.85 -1.95%
Salary and wage
Administrative expenses 310,909,980.43 236,539,410.63 31.44% expenses have increased
over that of last year
Financial cost -29,492,795.58 -1,776,908.37
Income tax expense 81,382,654.54 102,927,297.96 -20.93%
R&D investment 180,167,642.16 177,443,968.15 1.53%
Cash paid by purchasing
Net cash flow arising from operation
690,323,908.25 378,923,690.48 82.18% goods and accepting
activities
labor service declined
Net cash flow arising from investment Cash paid for investment
314,744,349.46 -592,455,421.53
activities declined
Net cash flow arising from financing
-813,830,454.63 106,793,020.26 -862.06% Dividend distribution
activities
Net increase of cash and cash equivalent 191,652,992.77 -105,928,538.96
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Auto parts 4,133,178,892.36 3,179,484,258.13 23.07% -12.54% -13.65% 4.46%
According to products
Auto fuel
2,538,597,772.47 1,806,427,276.08 28.84% -11.70% -12.70% 2.90%
injection system
Post-processing
1,354,791,563.22 1,192,914,112.31 11.95% -15.80% -17.12% 13.36%
system
Induction system 239,789,556.67 180,142,869.74 24.87% -0.84% 3.89% -12.10%
According to region
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Domestic 3,966,974,100.14 3,023,685,102.13 23.78% -12.60% -13.57% 3.75%
Overseas 166,204,792.22 155,799,156.00 6.26% -11.17% -15.06% 217.80%
III. Analysis of non-main business
√Applicable □Not applicable
In RMB
Ratio in total
Amount Note Whether be sustainable
profit
Yes (The Company’s joint ventures
Income mainly from the two joint
Bosch Automobile Diesel and Zhonglian
Investment ventures the Company (Bosch
888,216,680.48 65.48% Electronics’ joint venture- Lianhe
income Automobile Diesel and Zhonglian
Electronic have stable production and
Electronic)
operation both on a sustained basis)
Gain/loss of Income from the change of shares
fair value 30,686,277.13 2.26% of SDEC and Miracle Automation No
changes that held by the Company
Asset
-1,500,885.27 -0.11% No
impairment
Non-operating
27,544,757.26 2.03% No
income
Non-operating
2,631,453.02 0.19% No
expense
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end of last year
Ratio
Ratio in total Ratio in total Notes of major changes
Amount Amount changes
assets assets
Monetary fund 2,689,698,577.33 12.04% 3,042,709,775.25 13.88% -1.84%
Account
2,319,307,654.58 10.38% 2,374,955,337.33 10.83% -0.45%
receivable
Inventory 1,427,136,271.99 6.39% 1,241,695,545.38 5.66% 0.73%
Investment
21,131,775.19 0.09% 22,761,528.91 0.10% -0.01%
property
Long-term equity
4,792,747,311.47 21.46% 4,261,256,191.08 19.44% 2.02%
investment
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Fix assets 2,680,884,221.89 12.00% 2,625,557,400.23 11.98% 0.02%
Investment of
Construction in equipment for
259,557,105.61 1.16% 195,609,102.08 0.89% 0.27%
process technology capacity
expansion
Short-term loans 321,055,399.28 1.44% 359,000,000.00 1.64% -0.20%
Loans of subsidiary
Long-term loans 22,500,000.00 0.10% 45,000,000.00 0.21% -0.11%
decreased
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Devaluatio Amount
Changes of fair Accumulative
Amount at the n of of
value changes of fair Amount of sale Amount at
Items beginning withdrawi purchas
gains/losses in value reckoned in the period period-end
period ng in the e in the
this period into equity
period period
Financial assets
1. Transactional
financial assets
121,066,008.00 30,195,948.00 151,261,956.00
(excluding derivative
financial assets)
Subtotal of financial
121,066,008.00 30,195,948.00 151,261,956.00
assets
Above total 121,066,008.00 30,195,948.00 151,261,956.00
Financial liabilities 490,329.13 490,329.13 0.00
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
Book value at
Item Restriction reasons
period-end
Monetary fund 158,280.00 Margin paid for the issuance of letter of guarantee
Monetary fund 52,783,679.85 Cash deposit for bank acceptance
Monetary fund 38,774,365.26 Selling equity of Protean Holdings Corp.
Monetary fund 1,655,119.95 Court freeze
Notes receivable 762,571,527.45 Notes pledge for bank acceptance
14
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
In accordance with the civil ruling No. (2016) Y03MC2490 and No.(2016) Y03MC2492
of Guangdong Shenzhen Intermediate People's Court（hereinafter referred to as "
Shenzhen Intermediate Court"）, the property with the value of 217 million Yuan under
Transactional
141,199,062.12 the name of the Company and other seven respondents and the third party Shenzhen
financial assets
Hejun Chuangye Holdings Co., Ltd. （hereinafter referred to as " Hejun Company"） was
frozen. As of the end of the reporting period, 4.71 million shares of Miracle Logistics and
11,739,102 shares of SDEC held by the Company were frozen
Total 997,142,034.63 --
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√Applicable □Not applicable
Book Changes
Cumulat Profit
Account value at in fair Book
ive fair Current and loss Capit
Variety Short ing the value of Current value at
Code of Initial value purchas in the Accountin al
of form of
securitie investm measure beginni the sales the end
securitie securitie changes e Reporti g subject Sourc
s ent cost
s s ment ng of current amount of the
in amount ng e
model the profit period
equity Period
period and loss
Domesti Transactio
Measure
c and 199,208 85,458, 19,221, 19,221, 104,680 nal Own
600841 SDEC d by fair
foreign ,000.00 408.00 648.00 648.00 ,056.00 financial funds
value
stocks assets
Domesti Transactio
Miracle Measure
c and 69,331, 35,607, 10,974, 10,974, 46,581, nal Own
002009 Automat d by fair
foreign 500.00 600.00 300.00 300.00 900.00 financial funds
ion value
stocks assets
15
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
268,539 121,066 30,195, 30,195, 151,261
Total -- 0.00 0.00 0.00 -- --
,500.00 ,008.00 948.00 948.00 ,956.00
Disclosure date of 2012-03-24
securities investment
2013-06-04
approval of the Board
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VI. Significant asset and equity sales
1. Significant asset sales
□ Applicable √ Not applicable
No significant assets being sold in the Period
2. Significant equity sales
□ Applicable √ Not applicable
VII. Analysis of the main stock-jointly and controlling subsidiary
√ Applicable □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
In RMB
Comp
Main Register Operating
any Type Total assets Net Assets Operating profit Net profit
business capital revenue
name
Post
Weifu Subsid processing 502,596,3
3,861,458,694.93 1,662,618,884.15 1,338,975,875.93 38,801,279.23 32,780,686.77
Leader iary system 00.00
products
Weifu Fuel
Subsid 346,286,8
Jinnin injection 1,396,248,740.28 1,049,513,354.38 328,481,669.39 48,557,515.93 75,516,399.57
iary 25.80
g system
Bosch Joint-s
Fuel
Autom tock USD241,0
injection 13,175,089,849.44 7,999,369,712.26 7,690,808,970.61 2,084,188,035.10 1,827,071,096.33
obile compa 00,000.00
system
Diesel ny
Zhong Joint-s Gasoline 600,620,0 6,167,579,853.07 5,637,005,486.65 11,298,817.88 739,595,992.63 737,662,037.83
16
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
lian tock system 00.00
Electr compa
onic ny
Subsidiary obtained and disposed in the Period
√ Applicable □ Not applicable
The method of obtaining and handling The influence to the whole production and
Company Name
subsidiaries during the report period performance
SPV Establishment No change
IRD Fuel Cells A/S Acquisition No change
Explanation on holding equity participation enterprise
In the first half of this year, the auto market was generally running at a low level with a double-digit decline. The main business income
and profit of the company, its holding subsidiaries and its shareholding subsidiaries were affected to varying degrees.
VIII. The structured subject controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
(1) Macro economy and market risks
The macro-economy and market environment are still complex and severe, and many factors such as the
automobile industry cycle and the automobile industry policy remain uncertain. The company will change its
deterministic model thinking to cope with future uncertainties, rely on existing businesses, actively expand new
fields, consolidate the existing business market position, and position in new business potential markets, and strive
to improve the company's core competitiveness and overall risk resistance.
(2) The risks of operation management and control
With the rapid growth of the Company's assets and the continuous expansion of business scope, but there are still
potential risks of operation management and control because of the large span and multiple links in personnel,
business, finance, and capital management. The company will continue to promote the optimization and
improvement of internal management, focus on strengthening compliance management, further improve the
systems and processes, promote the institutionalization and standardization of company management, and control
operational risks.
17
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
(3) The risks of fluctuations in raw material prices
The company's main raw materials include various grades of steel, aluminum, precious metals, etc., the continuous
rise in prices will bring the risks of rising costs to the company. The company will pay close attention to the price
trend of major raw materials, choose appropriate procurement opportunities, and make reasonable strategic
reserves to resolve the risk of raw material price fluctuations.
(4) Risks associated with financial instruments
The major financial tools of the company includes equity investments, loans, account receivables & payables, etc..
The basic strategy of company risk management is to confirm and analyze various potential risks that may occur,
strictly control the risks, so as to narrow the negative impact down to the minimum and make the shareholders’ and
other investors’ interests to the maximum.
18
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Participation ratio
Meeting Type Holding date Disclosure date Index
for investors
Annual General Notice No.: 2019-015 released on
AGM 44.56% 2019-05-28 2019-05-29
Meeting of 2018 Juchao Website (www.cninfo.com.cn)
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
III. Commitments that actual controller, shareholder, related parties, buyer and committed
party as the Company etc. have fulfilled during the reporting period and have not yet fulfilled
by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the actual controller, shareholder, related parties, buyer and committed party as the Company etc.
have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
19
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reporting
Other lawsuits
√Applicable □ Not applicable
Amount Judgment
Whether Trial Results
Related Implementat
Basic Situation of Formed Progress of Litigation and Effects of Disclosure Disclosure
to the ion of
Litigation (Arbitration) Accrued (Arbitration) Litigation Date Index
Case (10 Litigation
Liabilitie (Arbitration)
thousan (Arbitration)
s
d Yuan)
On March 6, 2017, the By the Company’s application
company received the for reconsideration, Shenzhen
civil ruling Intermediate People's Court
No.(2016)Y03MC2490 deemed the total assets that
and No.(2016) Cinda Company applied for
Y03MC2492 from preservation to be RMB This litigation
(Announceme
Shenzhen Intermediate 217,027,697.23. The total will not affect
nt No.:
People's Court about the value of 15.3 million shares of the company’s Not yet
2017-03-0 2017-002)
dispute case that the 21,703 N SDEC Stock and 4.71 million daily implemente
8 published on
plaintiff applicant China shares of Miracle Automation operating d
www.cninfo.c
Cinda Asset held by the Company has activities for
om.cn
Management Co., Ltd. exceeded the total assets that the time being
Shenzhen Branch Cinda Company applied for
(hereinafter referred to preservation, therefore,
as “Cinda Company”) 3,560,898 shares of SDEC
appealed the respondent Stock held by the Company
Weifu High Technology was unfrozen. Up to the end
20
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
and other seven of the reporting period, the
respondents and the Company’s frozen assets were
shareholders of the third as follows: 4.71 million shares
party Hejun Company of Miracles Logistics held by
damaged the interests of the Company and its fruits,
corporate creditors, and 11,739,102 shares of
which adopted the SDEC Stock held by the
mandatory measures to company and its fruits. At
freeze the assets with present, this litigation is in the
value of RMB 217 first instance (First trail on 24
million under the name September 2017 and
of the Company and follow-up session will held
other seven respondents until further notice)
and Hejun Company.
Freeze 4.71 million
shares of Miracle
Automation and 15.3
million shares of SDEC
Stock held by the
company.
The Company has applied to
the Futian Court for
compulsory liquidation of
Hejun Company. Futian Court
has made a civil ruling This event
((2017) Yue 0304 QS No. 5) will not affect (Announceme
The Company applied to
which ruled to execute the Relevant nt No.:
the Futian Court for 2017-12-0
3,300 N compulsory liquidation to Company’s works still 2017-023)
compulsory liquidation 6
Hejun Company. The daily in process published on
of Hejun Company.
Company will actively operating www.cninfo.c
cooperate with the court to do activities om.cn
the relevant liquidation work
and safeguard the legitimate
rights and interests of the
Company.
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
21
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
XI. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
√ Applicable □ Not applicable
On 20 June 2014, the Company held the 2013 AGM which deliberated "the Company’s incentive fund
implementation methods", the Company has implemented the medium and long term special incentive allocation
for core talents during the reporting period
XII. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Wheth
Trading er over
Availa
Conte Related
Type Relate Proporti limit the Clearing Index
nt of transaction ble
of Pricing d on in approve approv form for Date of of
Related relate amount (in
Relationship related principl transac similar related similar
party d 10
transac e tion transacti d (in 10 ed transacti disclosure disclos
transa thousand market
tion price ons (%) thousan limited on ure
ction Yuan)
price
d Yuan) or not
(Y/N)
Based
Weifu
on fair Based
Precisio Notice
Associated Procur Good value Marke on the Marke
n 1,282.81 0.44% 4,000 N 2019-04-23 No.:20
company ement s of the t price contract t price
Machine 19-009
market terms
ry
price
Associated
Based
company,
on fair Based
Bosch Controlling Notice
Procur Good value Marke on the Marke
Diesel subsidiary of 833.27 0.29% 6,000 N 2019-04-23 No.:20
ement s of the t price contract t price
System German 19-009
market terms
Bosch
price
Company
Based
on fair Based
Weifu Joint venture Notice
Procur Good value Marke on the Marke
Environ of Weifu 67,565.73 23.20% 200,000 N 2019-04-23 No.:20
ement s of the t price contract t price
ment Leader 19-009
market terms
price
Robert Second Based Based Notice
Procur Good Marke Marke
Bosch largest on fair 6,680.14 2.29% 13,000 N on the 2019-04-23 No.:20
ement s t price t price
Compan shareholder value contract 19-009
22
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
y of the of the terms
Company market
price
Based
Weifu
on fair Based
Precisio Good Notice
Associated value Marke on the Marke
n Sales s and 66.19 0.02% 300 N 2019-04-23 No.:20
company of the t price contract t price
Machine labors 19-009
market terms
ry
price
Associated
Based
company、
on fair Based
Bosch Controlling Good Notice
value Marke on the Marke
Diesel subsidiary of Sales s and 148,782.26 33.79% 260,000 N 2019-04-23 No.:20
of the t price contract t price
System German labors 19-009
market terms
Bosch
price
Company
Based
on fair Based
Weifu Joint venture Good Notice
value Marke on the Marke
Environ of Weifu Sales s and 1,023.14 0.23% 5,000 N 2019-04-23 No.:20
of the t price contract t price
ment Leader labors 19-009
market terms
price
Based
Second
Robert on fair Based
largest Good Notice
Bosch value Marke on the Marke
shareholder Sales s and 30,979.1 7.04% 90,000 N 2019-04-23 No.:20
Compan of the t price contract t price
of the labors 19-009
y market terms
Company
price
Associated Paym
Based
company、 ent of
on fair Based
Bosch Controlling techni Notice
value Marke on the Marke
Diesel subsidiary of Other cal 100.27 100 N 2019-04-23 No.:20
of the t price contract t price
System German royalt 19-009
market terms
Bosch ies,
price
Company etc.
Paym
Based
Second ent of
on fair Based
largest techni Notice
Robert value Marke on the Marke
shareholder Other cal 112.23 300 N 2019-04-23 No.:20
Bosch of the t price contract t price
of the royalt 19-009
market terms
Company ies,
price
etc.
23
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Based
on fair Based
Weifu Joint venture Rent Notice
value Marke on the Marke
Environ of Weifu Other receiv 125.4 300 N 2019-04-23 No.:20
of the t price contract t price
ment Leader able 19-009
market terms
price
Associated
Based
company、 Procu
on fair Based
Bosch Controlling reme Notice
value Marke on the Marke
Diesel subsidiary of Other nt of 572.09 1,000 N 2019-04-23 No.:20
of the t price contract t price
System German fixed 19-009
market terms
Bosch assets
price
Company
Based
Sales on fair Based
Weifu Joint venture
of value Marke on the Marke
Environ of Weifu Other 1,048.52 Y
fixed of the t price contract t price
ment Leader
assets market terms
price
Total -- -- 259,171.15 -- 580,000 -- -- -- -- --
Detail of sales return with major
Not applicable
amount involved
After deliberated and approved by AGM of 2018, it is estimated that the routine related
transaction for year of 2019 amounting to 5800 million Yuan, actually 2591.7115 million
Yuan in total occurred in reporting period, including:
Report the actual implementation of
1. It is estimated that purchasing goods and labors from related parties amounted as 2230
the normal related transactions which
million Yuan at most for year of 2019, actually 763.6196 million Yuan occurred in reporting
were projected about their total
period;
amount by types during the reporting
2. It is estimated that sales of goods and labors to related parties amounted as 3553 million
period (if applicable)
Yuan at most for year of 2019, actually 1808.5069 million Yuan occurred in reporting period;
3. It is estimated that other related transactions with related parties amounted as 17 million
Yuan at most for year of 2019, actually 19.585 million Yuan occurred in reporting period;
Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
24
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other related transactions
√ Applicable □ Not applicable
On June 4, 2019, the 7th meeting of the Ninth Board of Directors held by the company reviewed and approved the
“Proposal on Joint Investment and Establishment of Companies and Related Transactions between the Company
and Related Parties”. In the important period of innovation and upgrading of the technology industry in the auto
industry, in order to conform to the new development trends (i.e. electromotion, intelligentization, network, and
sharing) of the auto industry. The company and its major shareholders, Wuxi Industry Development Group Co.,
Ltd. (hereinafter referred to as "Industry Group"), Wuxi Taiji Industry Corporation limited (hereinafter referred to
as "Taiji Industry"), Chuxin Semiconductor Technology Co., Ltd. (hereinafter referred to as "Chuxin
Semiconductor"), Wuxi Spark Microelectronics Partnership (Limited Partnership) (hereinafter referred to as
"Spark") jointly invested and established a company engaged in the design, development and sales of
semiconductor devices and integrated circuits and the use of its own assets for external investment. (Wuxi Xichan
Microchip Semiconductor Co., Ltd.). Wuxi Xichan Microchip Semiconductor Co., Ltd. (hereinafter referred to as
“Xichan Microchip”) has been established and completed the industrial and commercial registration procedures,
and obtained the “Business License” issued by Wuxi Xinwu District Market Supervision Administration. The
registered capital of Xichan Microchip is RMB 2.11 billion. The shareholding structure is: the related party
Industry Group invested RMB 910 million (accounting for 43.13%), and Spark invested RMB 600 million
(accounting for 28.43%), Weifu High Tech invested RMB 200 million (accounting for 9.48%), related party Taiji
Industry invested RMB 200 million (accounting for 9.48%), and Chuxin Semiconductor invested RMB 200
million (accounting for 9.48%).
Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
Proposal on Joint Investment and Establishment of
More details were published on Juchao Website
Companies and Related Transactions between the 2019-06-05
(http://www.cninfo.com.cn) (Notice No.: 2019-018)
Company and Related Parties
Progress of the Joint Investment and Establishment of
More details were published on Juchao Website
Companies and Related Transactions between the 2019-06-13
(http://www.cninfo.com.cn) (Notice No.: 2019-019)
Company and Related Parties
25
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Actual date of
Name of the Related e for
Guarant happening (Date Actual Guarantee Guarantee Implemen
Company Announcement related
ee limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure date party
agreement)
(Y/N)
Guarantee of the Company and the subsidiaries
Related Guarante
Actual date of
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure party
agreement)
date (Y/N)
26
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Ningbo Tianli
Turbo charging Joint liability
2016-10-27 6,000 2016-11-11 3,750 5 N N
Technology Co., guaranty
Ltd.
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 0 3,750
subsidiaries in report period
report period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 6,000 3,750
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee of the subsidiaries for the subsidiaries
Related Guarante
Actual date of
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure party
agreement)
date (Y/N)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 0 occurred guarantee in report 3,750
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 6,000 guarantee at the end of report 3,750
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
0.23%
net assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties (D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 0
indirectly (E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50% (F)
Total amount of the aforesaid three guarantees (D+E+F) 0
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
27
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Explanation on guarantee with composite way
Nil
(2) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XV. Social responsibility
1. Major environmental issues
The company and its subsidiaries don’t belong to the key pollutant discharging units published by the
environmental protection department.
Protecting the environment is the corporate mission of Weifu High Technology. The company’s main business is
expanded around the energy saving and emission reduction of automobiles. At present, the company’s main
products have all met the emission regulations required by the state, and the company is actively preparing
products that can meet the requirements of more stringent emission regulations. Saving resources and reducing
consumption are part of the core value of Weifu High Technology. On the one hand, it is conducive to the
improvement of enterprise efficiency, and at the same time, it is conducive to improving the resource utilization
rate of the whole society. Therefore, the company will continue to improve the resource utilization through
technological innovation.
The company resolutely implements the “three simultaneous” system of construction projects and strictly
performs the procedures for environmental impact assessment, approval, and acceptance of construction projects.
In the process of new project and technical transformation, the new and old pollution can be solved together
according to the principle of technical feasibility and economic rationality, and the “three wastes” management
project must be designed, constructed and accepted at the same time as the main project.
2. Precise poverty alleviation social responsibility
There is no precise poverty alleviation carried out in the period and no follow plan either
XVI. Explanation on other significant events
√ Applicable □ Not applicable
Matters relating to the sale of the equity interest in the joint-stock company Protean Holdings Corp.
28
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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, Weifu High Tech no
longer holds a stake in Protean Holdings Corp. (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.)
Since 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. More
details about “Notice of the sale of equity interest in the joint-stock company Protean Holdings Corp.” (No.:
2019-018) were published on Juchao Information Website (http://www.cninfo.com.cn).
XVII. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
29
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in Shares
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliza
New
Bonus tion of Subtot Proportio
Amount Proportion shares Others Amount
shares public al n
issued
reserve
I. Restricted shares 80,079 0.01% 80,079 0.01%
3. Other domestic shares 80,079 0.01% 80,079 0.01%
Domestic nature
80,079 0.01% 80,079 0.01%
person shares
II. Unrestricted shares 1,008,870,491 99.99% 1,008,870,491 99.99%
1. RMB Ordinary shares 836,490,491 82.90% 836,490,491 82.90%
2. Domestically listed
172,380,000 17.09% 172,380,000 17.09%
foreign shares
III. Total shares 1,008,950,570 100.00% 1,008,950,570 100.00%
Reasons for share changed
□Applicable √ Not applicable
Approval of share changed
□Applicable √ Not applicable
Ownership transfer of share changed
□Applicable √Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable √Not applicable
30
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In share
Total common shareholders at Total preference shareholders with voting rights recovered at
60,037 0
period-end end of reporting period (if applicable) (see note 8)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Number of
share
Total common Amount of Amount of
Proporti pledged/froze
Nature of on of shareholders Changes in restrict un-restrict
Full name of Shareholders n
shareholder shares at the end of report period common common
held State
report period shares held shares held Amo
of
unt
share
Wuxi Industry Development State-owned
20.22% 204,059,398 0 204,059,398
Group Co., Ltd. corporate
Foreign
ROBERT BOSCH GMBH 14.16% 142,841,400 0 142,841,400
corporate
Hong Kong Securities
Foreign
Clearing Company Ltd. 5.73% 57,857,357 17,375,313 57,857,357
corporate
(HKSCC)
BBH BOS S/A FIDELITY FD Foreign
1.84% 18,530,315 527,518 18,530,315
- CHINA FOCUS FD corporate
Bank of Communication –
HSBC Jixin Double Core
Other 1.82% 18,331,307 -8,281,266 18,331,307
Strategy Mixed Securities
Investment Fund
Central Huijin Assets State-owned
1.27% 12,811,200 0 12,811,200
Management Co., Ltd. corporate
China Life Insurance -
traditional - general insurance Other 1.21% 12,238,898 12,238,898 12,238,898
products - 005L-CT001 Shen
China Life Insurance- Bonus
Other 1.14% 11,459,033 9,673,133 11,459,033
-Individual bonus -
31
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
-005L-FH002 Shen
Tianda Assets Management
Co., Ltd. - Tianda Global Foreign
0.97% 9,802,559 9,802,559 9,802,559
Strategy Fund - All China corporate
equity fund (Exchange)
Agricultural Bank of China -
Other 0.69% 7,007,675 796,607 7,007,675
CS 500 ETF
Strategy investors or general corporation
comes top 10 shareholders due to rights Not applicable
issue (if applicable) (see note 3)
Among the top ten shareholders, there has no associated relationship between Wuxi
Industry Development Croup Co., Ltd. and other shareholders, the first largest
Explanation on associated relationship
shareholder of the Company; and they do not belong to the consistent actionist
among the aforesaid shareholders
regulated by the Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Particular about top ten shareholders with un-restrict common shares held
Amount of un-restrict Type of shares
Shareholders’ name common shares held
Type Amount
at Period-end
Wuxi Industry Development Group Co., Ltd. 204,059,398 RMB common shares 204,059,398
RMB common shares 115,260,600
ROBERT BOSCH GMBH 142,841,400 Domestically listed
27,580,800
foreign shares
ROBERT BOSCH GMBH 57,857,357 RMB common shares 57,857,357
Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 18,530,315 18,530,315
foreign shares
Bank of Communication – HSBC Jixin Double Core Strategy Mixed
18,331,307 RMB common shares 18,331,307
Securities Investment Fund
Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common shares 12,811,200
China Life Insurance - traditional - general insurance products -
12,238,898 RMB common shares 12,238,898
005L-CT001 Shen
China Life Insurance- Bonus -Individual bonus - -005L-FH002 Shen 11,459,033 RMB common shares 11,459,033
Tianda Assets Management Co., Ltd. - Tianda Global Strategy Fund -
9,802,559 RMB common shares 9,802,559
All China equity fund (Exchange)
Agricultural Bank of China - CS 500 ETF 7,007,675 RMB common shares 7,007,675
Among the top ten shareholders, there has no associated
Expiation on associated relationship or consistent actors within the
relationship between Wuxi Industry Development Croup
top 10 un-restrict common shareholders and between top 10
Co., Ltd. and other shareholders, the first largest shareholder
un-restrict common shareholders and top 10 common shareholders
of the Company; and they do not belong to the consistent
32
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
actionist regulated by the Management Measure of
Information Disclosure on Change of Shareholding for
Listed Company.
Explanation on top 10 shareholders involving margin business (if
Not applicable
applicable) (see note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back
agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
33
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
34
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
No change of shares held by directors, supervisors and senior executives, found more details in Annual Report 2018.
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.
35
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section IX. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
36
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
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
37
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Buying back the sale of financial assets
Inventories 1,427,136,271.99 1,438,528,714.59
Contractual assets
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
38
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Capital borrowed
Transactional financial liability
Financial liability measured by fair value and with variation
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
39
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
40
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Note receivable 202,038,803.99 264,264,207.30
Account receivable 766,756,661.80 742,246,990.99
Receivable financing
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
41
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
42
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
43
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
44
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
(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
261,591.54
currency 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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
(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
47
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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:
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
50
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
51
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
52
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
53
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
(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
54
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
55
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4．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
56
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
57
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
58
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
59
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
60
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to RMB 303.4355 million.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
61
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd. issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMB
ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor, Robert
Bosch Co., Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company), face value was
ONE Yuan per share, added registered capital of RMB 112,858,000, and the registered capital after change was
RMB 680,133,995. Wuxi Industry Group is the first majority shareholder of the Company, and Robert Bosch
Company is the second majority shareholder of the Company.
In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting RMB 1,020,200,992 up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the
cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation
62
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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.
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
63
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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.
64
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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.
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.
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(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
As a purchaser, fair value of the assets (equity of purchaser held before the date of purchasing included) for
purchasing controlling right from the purchaser, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the purchaser obtained in combination, recognized as goodwill if the results is
positive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of the
identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs.
After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, the
acquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost for
combination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its book
values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency of
the purchaser obtained by the Company recognized by fair value, that required identification conditions;
Acquisition date refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the invested
party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested party.
Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
de-consolidated from the date that such control ceases. All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements. For subsidiaries being
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disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
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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 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.
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8. Determining standards for cash and cash equivalent
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held
by the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as
known amount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. Thereinto,
the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in
accordance with the actual exchange rate in the transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
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.
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The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) 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.
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② Financial assets measured at fair value and whose changes are included in other comprehensive 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 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.
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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.
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.
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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.;
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.
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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).
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
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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:
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
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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
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)
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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
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
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(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%
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.
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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
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
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prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
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
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the disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases, the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted. If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be
restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale, with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
not be reverted.
The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized,
and the debt interests and other fees in the disposal group held for sale continue to be recognized.
If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale, they will be measured at the lower of the following:
(i) The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation, amortization or impairment that should have been recognized given they are not classified as held
for sale;
(ii) The recoverable amount.
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
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investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital, the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For business
combination resulted in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions will
be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional
consideration paid for further share acquisition on the date of combination shall offset against the capital reserve.
If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive income
recognized as a result of the previously held equity investment accounted for using equity method on the date of
combination or recognized for available-for-sale financial assets will not be accounted for.)
②For a long-term equity investment acquired through a business combination involving enterprises not under
common control, the initial investment cost of the long-term equity investment shall be the cost of combination on
the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,
liabilities incurred or borne and equity securities issued. (For business combination resulted in an enterprise not
under common control by acquiring equity of the acquire under common control through a stage-up approach with
several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”. If
they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining
control. If they are not belong to “transactions in a basket”, the initial investment cost of the long-term equity
investment accounted for using cost method shall be the aggregate of the carrying amount of equity investment
previously held by the acquire and the additional investment cost. For previously held equity accounted for using
equity method, relevant other comprehensive income will not be accounted for. For previously held equity
investment classified as available-for-sale financial asset, the difference between its fair value and carrying
amount, as well as the accumulated movement in fair value previously included in the other comprehensive
income shall be transferred to profit or loss for the current period.) plus the combination cost measured by costs
which have directly connection with acquisition are considered as initial investment cost of such long-term equity
investment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the
party being combined as at the combination date are all measured at fair values, without consideration to
amount of minority interests. The surplus of combination cost less fair value net realizable assets of the
party being combined is recorded as goodwill, and the deficit is directly recognized in the consolidated
statement of gains and losses.
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③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on 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
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portion attributable to the Company. Investment gain shall be recognized accordingly. However, any unrealized
loss arising from inter-group transactions between the Group and an invested party is not eliminated to the extent
that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified
as operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment by the
investor without obtaining control, the initial investment cost of additional long-term equity investment shall be
the fair value of disposed operation. The difference between initial investment cost and the carrying value of
disposed operation will be fully included in profit or loss for the current period. In the event that the Group sold an
asset classified as operation to its associates or joint ventures, the difference between the carrying value of
consideration received and operation shall be fully included in profit or loss for the current period. In the event
that the Company acquired an asset which formed an operation from its associates or joint ventures, relevant
transaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20
“Business combination”. All profit or loss related to the transaction shall be accounted for.
The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of
the long-term equity investment together with any long-term interests that in substance form part of the investor’s
net investment in the invested party are reduced to zero. If the Group has to assume additional obligations, the
estimated obligation assumed shall be provided for and charged to the profit or loss as investment loss for the
period. Where the invested party is making profits in subsequent periods, the Group shall resume recognizing its
share of profits after setting off against the share of unrecognized losses.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note V.- 6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
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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 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
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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.
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
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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 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
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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 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
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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 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.
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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.
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
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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.
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
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in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier. The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the
employees who retire before schedule from the date on which the employees stop rendering services to the
scheduled retirement date, shall be recognized (as compensation for termination of employment) in the current
profit or loss by the Group if the recognition principles for provisions are satisfied.
(4)Accounting for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the
employees satisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans,
and the defined benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan
assets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the supplementary
retirement benefits (including the service costs of the current period, the previous service costs, and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes
generated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other
consolidated income.
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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
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
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relevant contract or agreement as agreed.
The basis that the Company confirms the revenue from transferring the right to use assets.
Rental income: the revenue realization is confirmed after collecting the rent on the date as agreed in the rental
contract (or agreement). For the rent not received on the date as agreed in the contract or agreement but can be
received, and of which the amount of revenue can be measured reliably can also be recognized as revenue.
(3) When confirming the incomes of labor services and construction contracts according to the percentage of
completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service revenue is
determined and recognized by adopting the percentage of completion method. The completion progress of service
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
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actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into current
gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period, than
recognized deferred income, and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred, than reckoned into current
gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
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.
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,
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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
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.
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Except in certain cases (such as the investments with insignificant sales amount when the maturity date comes), if
the Company fails to hold these investments till the maturity date, then all the investments shall be reclassified to
the available-for-sale financial assets which cannot be classified as the held-to-maturity investments in this fiscal
year and the next two fiscal years. This kind of case may have a significant impact on the relevant financial assets
value listed on the financial statements, and may affect the Company's financial instruments risk management
strategy.
(4) Impairment of held-to-maturity investments
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments. The objective evidences of impairment include that the issuer has serious financial difficulties so that
the financial assets cannot continue to be traded in an active market, or cannot be able to fulfill the contract terms
(for example, breach the contract of paying the interests or principal), etc. In the process of making the judgments,
the Company needs to evaluate the impact of the objective evidence of impairment to the expected future cash
flows of the investment.
(5) Impairment of financial assets available for sale
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments and assumptions so as to determine whether it is needed to affirm its impairment loss in the profit
statement. In the process of making the judgments and assumptions, the Company needs to evaluate the extent and
duration when the fair value of the investment is less than the cost, as well as the financial situation and short-term
business prospects of the invested party, including the industry conditions, technological change, credit rating,
default rates, and risks of the counter party.
(6) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
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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 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.
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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
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
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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
Oil and gas assets
Right-of-use asset
Intangible assets 324,892,822.75 324,892,822.75
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
Other current liabilities
Total current liabilities 3,872,286,284.95 3,872,286,284.95
Non-current liabilities:
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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 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
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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
Available-for-sale financial assets 180,035,176.91 -180,035,176.91
Other creditors’ investment
Held-to-maturity investments
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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
Dividend payable
Liability held for sale
Non-current liabilities due within one year
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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 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
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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%
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
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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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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:
SDEC 104,680,056.00 85,458,408.00
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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
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 359,389,642.56
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
significant amount 0.29% 100.00% 0.36% 100.00%
0.00 0.00 .00 .00
and withdrawal bad
debt provision on
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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.
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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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(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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(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
67,981,726.00
receivable
Receivable from the tax refund for
11,515,433.66
withholding the B-share
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 Expected credit losses for Expected credit losses for
Bad debt reserve Total
losses over next 12 the entire duration (without the entire duration (with
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
(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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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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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
Construction in
Item House and Building Land use right Total
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
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3.Current decreased
(1) Disposal
(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:
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
scrapping
4.Ending balance 46,009,662.74 73,319.90 7,265,993.65 53,348,976.29
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
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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 offunds
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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(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 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
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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
Item Deductible temporary Deferred income Deferred income
temporary
difference tax assets tax assets
difference
Bad debt reserve 50,810,260.67 7,783,655.00 44,576,998.51 6,770,470.23
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
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Change of fair value of available-for-sale
23,305,227.00 3,495,784.05
financial assets
Impairment provision for other equity instrument
10,000,000.00 1,500,000.00
investment
Depreciation reserves of available-for-sale
155,994,927.09 23,399,239.06
financial 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
490,329.13 73,549.37
liability
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
combination not under the same 12,381,519.47 1,857,227.92 12,751,629.44 1,912,744.40
control
Change of fair value of other
30,195,948.00 4,529,392.20
creditors’ 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 after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax -4,764,554.15 214,153,685.24 -4,764,554.15 234,697,139.58
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
assets
Deferred income tax
-4,764,554.15 6,386,620.12 -4,764,554.15 1,912,744.40
liabilities
(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
130
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
131
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
III. Dismissed welfare 2,601,561.75 515,426.00 1,863,263.01 1,253,724.74
IV. Other welfare due within one
90,050,000.00 44,085,521.00 45,964,479.00
year
V. Other short-term
welfare-Housing subsidies,
19,541,888.19 1,996,132.75 17,545,755.44
employee benefits and 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,allowances and subsidies 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
133
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Item Ending balance Opening balance
VAT 11,847,039.81 15,332,751.18
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
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(3) Other accounts payable
1) Other accounts payable by nature
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
135
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Special accounts payable 18,265,082.11 18,265,082.11
Total 35,083,263.11 35,422,354.11
(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,
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
the term is from 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
note⑥:To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 27 October 2009 to 27 October 2024. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
note⑦:To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 December 2010 to 27 December 2025. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
note⑧:To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 28 December 2011 to 28 December 2026. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
note⑨:To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial 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.
31. Long-term employee compensation payable
(1) Long-term employee compensation payable
In RMB/CNY
137
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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
technology and
R&D ability of 7,100,000.00 7,100,000.00 Assets related
common rail
system for diesel
by distributive
high-voltage
Fund of industry 60,400,000.00 60,400,000.00 Income
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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
the variable
cross-section 10,908,721.03 10,908,721.03 Assets related
turbocharger for
diesel engine
Demonstration
1,450,030.10 1,450,030.10 Assets related
project for
139
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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 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.
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(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 depreciation process.
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(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
Openi comprehen comprehe
Account Less : Belong to
ng sive nsive Belong to Ending
Item before income minority
balanc income in income in parent company balance
income tax tax shareholders
e previous previous after tax
in the year expense after tax
period and period and
carried carried
forward to forward to
gains and retained
142
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
losses in earnings in
current current
period period
II. Other comprehensive income items
which will be reclassified subsequently 271,537.20 261,591.54 9,945.66 261,591.54
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.
143
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3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
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
144
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Business entertainment fee 9,328,770.85 8,251,206.32
Other 7,000,004.17 6,071,551.76
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
145
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Source Current period Last Period
Government grants with routine activities concerned 17,632,117.95 14,032,459.71
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
490,329.13
assets
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
146
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In RMB/CNY
Item Current period Last Period
I. Bad debt losses -2,192,563.70
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
N N 1,340,000.00 Income
transformation project of common
147
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
rail pump production in Huishan related
District
Reward for the high-tech
enterprise identification in Income
N N 500,000.00
management committee of related
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
180,170.75 167,094.34 180,170.75
losses
Including: fixed assets disposal
180,170.75 167,094.34 180,170.75
losses
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
148
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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
(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
149
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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
(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
150
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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
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: --
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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
(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 --
152
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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
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
153
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61. Government grants
(1) Government grants
In RMB/CNY
Amount
reckoned in
Category Amount Item
current
gain/loss
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
154
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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 Funds for technical improvement for annual
output as 180,000 pieces of catalytic reduction output as 180,000 pieces of catalytic reduction
57,777.78 57,777.78
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
IRD Fuel Subject
2019-04-23 54,936,420.00 66.00% Purchasing 2019-04-23 6,274,812.54 -3,478,574.45
Cells A/S asset
155
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
delivery
date
(2) Combination cost and goodwill
In RMB/CNY
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
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(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 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
Registered
Name of subsidiary operation Business nature Acquired by
place Directly Indirectly
place
Weifu Jinning Nanjing Nanjing Spare parts of 80.00% Enterprise combine under
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internal-combustion the same control
engine
Automobile exhaust Enterprise combine under
Weifu Leader Wuxi Wuxi 94.81%
purifier, muffler the same control
Spare parts of
Weifu Mashan Wuxi Wuxi internal-combustion 100.00% Investment
engine
Spare parts of
Weifu Chang’an Wuxi Wuxi internal-combustion 100.00% Investment
engine
Enterprise combine under
Weifu International Trade Wuxi Wuxi Trade 100.00%
the same control
Spare parts of
Enterprise combine not
Weifu ITM Wuxi Wuxi internal-combustion 100.00%
under the same control
engine
Spare parts of
Weifu Schmidt Wuxi Wuxi internal-combustion 66.00% Investment
engine
Spare parts of
Enterprise combine not
Weifu Tianli Ningbo Ningbo internal-combustion 54.23%
under the same control
engine
Spare parts of
Enterprise combine not
Weifu Autocam Wuxi Wuxi internal-combustion 51.00%
under the same control
engine
Automobile exhaust
Weifu Leader (Wuhan) Wuhan Wuhan 60.00% Investment
purifier, muffler
Automobile exhaust
Weifu Leader(Chongqing) Chongqing Chongqing 100.00% Investment
purifier, muffler
Automobile exhaust
Weifu Leader(Nanchang) Nanchang Nanchang 100.00% Investment
purifier, muffler
Enterprise combine under
SPV Denmark Denmark 100.00%
the same control
IRD Fuel Cells A/S Denmark Denmark Fuel cell components 66.00% Acquisition
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
158
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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
(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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
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.
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Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold: Nil
(2) Main financial information of the important joint venture
In RMB/CNY
Ending balance/Current period Opening balance/Last Period
Weifu Environment Weifu Environment
Current assets 2,247,248,921.76 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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Non-current
2,729,313.74 2,759,548.45
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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(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 年半年度报告全文
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 receivables.
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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%
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 -- --
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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.
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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.
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
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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
Whether more than
Content of related Approved
Related party Current period the transaction limit Last Period
transaction transaction limit
(Y/N)
Weifu Precision
Goods 12,828,147.72 40,000,000.00 N 22,934,380.54
Machinery
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
(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
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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
Whether
Guarantee amount
Guarantee guarantee
Guarantee provided Debit bank (in 10 thousand Starting from Terminated dated
received implemented or
Yuan)
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
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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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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:
Product segment Product segment Product segment investment/incom
of automobile of automotive of air e measured by Offset of segment
Item Total
fuel injection post processing management equity, income of
system system system financial products
or possession and
174
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
disposal income,
the retained assets
or gains/losses as
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
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
6,800,00 6,800,00 7,000,000 7,000,000
receivable with 0.87% 100.00% 0.93% 100.00%
0.00 0.00 .00 .00
single significant
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
amount and
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
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
176
无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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:
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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)
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
Ratio in total Ending
ending balance
Enterprise Nature Ending balance Account age balance of of bad
other debt
receivables reserve
Balance of related party in the Within 6
Wuxi Weifu Chang’an Co., Ltd. 90,000,000.00 46.04%
consolidate scope months
Balance of related party in the Within 6
Weifu Mashan Pump Glib Co., Ltd. 34,552,615.72 17.68%
consolidate scope months
Wuxi Weifu Schmidt Power System Balance of related party in the Within 6
24,000,000.00 12.28%
Spare Parts Co., Ltd. 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 refund for Receivable from the tax refund for Within 6
11,515,433.66 5.89%
withholding the B-share withholding the B-share months
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
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
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
(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
Electric
54,742,375.02 -1,176,749.59 53,565,625.43
Drive
Tech. Co.,
Ltd.
Subtotal 54,742,375.02 -1,176,749.59 53,565,625.43
II. Associated enterprise
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
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
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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 (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
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
Nil
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无锡威孚高科技集团股份有限公司 2019 年半年度报告全文
Section XI. Documents available for reference
I. Financial statement carrying the signatures and seals of person in charge of the company, principal
of the accounting works and person in charge of accounting organ (accounting Supervisor);
II. Original documents of the Company and manuscripts of public notices that disclosed in the website
Juchao (http://www.cninfo.com.cn) designated by CSRC in the report period;
III. Semi-annual report published on China Securities Journal, Securities Times and Hong Kong
Commercial Daily during the Period.
BOD of Weifu High-Technology Group Co., Ltd.
Chairman:
Chen Xuejun
August 27, 2019
185
