Weifu High-Technology Group Co., Ltd.
SEMI-ANNUAL REPORT 2016
August 2016
无锡威孚高科技集团股份有限公司 2016 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.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
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 Semi-Annual
Report 2016 is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the
Report, they do not constitute a substantial commitment for investors. Investors
should be cautious with investment risks.
2
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Content
Section I Important Notice, Contents and Paraphrase .................................................................. 2
Section II Company Profile ............................................................................................................... 5
Section III Accounting data and summary of finnaical indexes .................................................... 7
Section IV Report of the Board of Directors ................................................................................... 9
Section V Important Events ............................................................................................................ 24
Section VI Changes in shares and particular about shareholders............................................... 31
Section VII Preferred Stock……………………………………………………………………….34
Section VIII Directors, Supervisors and Senior Executives ....................................................... 35
Section IX Financial Report ............................................................................................................ 36
Section X Documents Available for Reference ........................................................................... 139
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Paraphrase
Items Refers to Contents
Company, The Company, Wei-fu High-technology Refers to Weifu High-Technology Group Co., Ltd.
Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Robert Bosch, Robert Bosch Company Refers to Robert Bosch Co., Ltd., ROBERT BOSCH GMBH
Bosch Automobile Diesel, Bosch Diesel System Refers to Bosch Automobile Diesel System Co., Ltd
Weifu Automotive Diesel Refers to Wuxi Weifu Automotive Diesel System Co., Ltd.
Weifu Leader Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
Weifu Jinning Refers to Nanjing Weifu Jinning Co., Ltd.
Weifu Environment Refers to Wuxi Weifu Environment Catalyst Co., Ltd.
Weifu Fine Machinery Refers to Wuxi Weifu Fine Machinery Manufacturing Co., Ltd.
Zhonglian Electronic Refers to Zhonglian Automobile Electronic Co., Ltd.
Ping An Securities Refers to Ping An Securities Co., Ltd.
Ping An Wealth Refers to Ping An Wealth Investment Management Co., Ltd.
Ping An Ronghui Refers to Shenzhen Ping An Ronghui Investment Fund Management Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
Jiangsu Gongzheng Refers to Jiangsu Gongzheng Tianye CPA (LLP)
The reporting period Refers to 1 Jan. 2016 to 30 Jun. 2016
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section II Company profile
I. Company profile
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
Abbr. of Chinese name of the Company(if applicable) 威孚高科
English name of the Company(if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
Abbr. of English name of the Company(if applicable) WFHT
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, New District, Wuxi City No.5, Huashan Road, New District, Wuxi City
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
III. 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 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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 2015.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
√Applicable □ Not applicable
Date of Registration ID of
Location of registration Tax authority No. Organization Code
registration Business License
Wuxi Industry &Commerce
At period-begin 2013-11-20 320200000014926 320200250456967 25045696-7
Administration of Jiangsu Province
Wuxi Industry &Commerce 913202002504569 913202002504569 913202002504569
At period-end 2016-04-29
Administration 67N 67N 67N
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Current period Same period of last year Increase/decrease in this report y-o-y
Operating revenue (RMB) 3,366,476,452.49 3,390,437,923.64 -0.71%
Net profit attributable to shareholders of
943,568,535.72 1,045,987,200.83 -9.79%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 829,632,717.13 884,001,959.90 -6.15%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
193,541,014.95 438,286,150.85 -55.84%
activities(RMB)
Basic earnings per share (RMB/Share) 0.94 1.03 -8.74%
Diluted earnings per share (RMB/Share) 0.94 1.03 -8.74%
Weighted average ROE 7.72% 9.14% -1.42%
Increase/decrease in this report-end
End of current period End of last period
over that of last period-end
Total assets (RMB) 16,696,620,317.59 15,704,093,069.04 6.32%
Net assets attributable to shareholder of
12,166,563,837.58 11,783,228,273.39 3.25%
listed company(RMB)
II. 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 has no 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) in reporting 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 has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
III. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
-736,558.42
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy Including government
enjoyed in quota or ration according to national standards, which are closely relevant 15,821,482.47 grand received for
to enterprise’s business) policy-based relocation
Profit and loss of assets delegation on others’ investment or management 97,055,393.89
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 sales, 20,210,318.13
exclude the effective hedging business relevant with normal operations of the
Company
Restoring of receivable impairment provision that tested individually 1,012,469.08
Other non-operating income and expenditure except for the aforementioned items 1,799,202.16
Relocation expenses -57,116.41
Less: Impact on income tax 20,456,474.29
Impact on minority shareholders’ equity (post-tax) 712,898.02
Total 113,935,818.59 --
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 2016 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
According to the data released by China Association of Automobile Manufacturers: in first half year of 2016,
production and sales of the automobile in China up to 12,892,200 and 12,829,800 with a y-o-y growth of 6.47
percent and 8.14 percent respectively; among which, passenger cars shows 11,099,400 and 11,042,300 in
production and sales respectively with 7.32 percent and 9.23 percent growth y-o-y and the commercial vehicle has
1,792,700 and 1,787,400 in production and sales respectively with 1.50 percent and 1.87 percent up on a y-o-y
basis.
During the reporting period, in front of the complicated macro economic situation and market conditions, the
Company played actively to capitalize every business opportunity to adapt to development trend. It insisted on
market orientation; focused on quality improvement, seek for efficiency enhancement, adhered to operating target,
improved internal control, detailed internal management and controlled risks and costs, ensuring structure
adjustment of three business segments and successful transformation. The Company realized operating income of
RMB3.366 billion, representing a year on year decrease of 0.71%; realized profit of RMB1.043 billion,
representing a year on year decrease of 9.95%; and realized net profit attributable to owners of parent company of
RMB944 million, representing a year on year decrease of 9.79%.
For the first half year of 2016, the Company managed to maintain stable operation, which accorded with the
current market condition of business vehicle and non-road machinery markets. Looking for the later half year, the
Company will continue to strengthen development of new products and new market, financial operation
management, product quality management, information system establishment and human resources management,
trying hard to deliver growth.
II. Main business analysis
Year-on-year changes for main financial data
In RMB
Y-o-y
Same period of
Current period increase/dec Reasons for changes
last year
rease
Operation revenue 3,366,476,452.49 3,390,437,923.64 -0.71%
Operation cost 2,633,281,983.25 2,643,639,033.68 -0.39%
Sales expenses 92,799,369.25 85,114,812.69 9.03%
Administrative expenses 314,596,534.92 293,774,077.81 7.09%
Financial cost -2,909,491.43 -4,167,369.67
Income tax expense 68,314,427.18 88,185,218.04 -22.53%
R&D investment 131,048,092.77 106,119,283.76 23.49%
Net cash flow arising
193,541,014.95 438,286,150.85 -55.84% The sales collection in the Period decreased
from operation activities
Net cash flow arising The capital out-flow increased over that of last
-2,078,064,480.91 -549,170,196.02
from investment activities period due to purchasing trust management in the
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Period
Net cash flow arising The payable dividend has not completed in the
-102,277,671.94 -515,429,962.26
from financing activities Period for payment
The capital out-flow increased over that of last
Net increase of cash and
-1,986,801,137.90 -626,314,007.43 period due to purchasing trust management in the
cash equivalent
Period
The compensation for removal of parent company
Non-operation revenue 18,747,382.73 77,198,017.61 -75.72%
decreased over that of last period
Non-operation Expenditure of the parent company for removal
2,335,822.02 56,924,343.71 -95.90%
expenditure decreased over that of last period
Gains/losses of fair value
The fair value of SDEC and Miracles decreased in
changes on the financial -56,207,588.74 123,791,917.50 -145.40%
the Period over that of last period
assets available for sale
Current
Last period-end Changes Reasons for changes
period-end
The capital out-flow increased over that of last
Monetary fund 1,224,397,416.60 3,274,679,732.54 -62.61% year due to purchasing trust management in the
Period
Sales revenue in the period has a increased on a
Account receivable 1,738,607,467.83 1,261,163,184.87 37.86% chain basis, account receivables increased over that
of last year-end
The time deposit decreased and deposit interest
Interest receivable 2,249,341.69 3,281,939.96 -31.46% rate decreased in the Period, thus the interest
receivable decreased over that of last year-end
The dividend receivable from Bosch Automobile
Dividend receivable 361,572,367.40 3,600,000.00 9,943.68%
Diesel and Zhonglian Electronic
The receivable amount of come-and-go money
Other account receivable 12,278,400.19 8,817,661.08 39.25%
from units increased over that of last year-end
The trust management increased over that of last
Other current assets 4,612,373,442.46 2,016,204,649.28 128.77%
year-end in the Period
The interest of long-term loans payable at
Interest payable 3,640,952.21 778,673.59 367.58%
period-end increased over that of last year-end
The payable dividend still not been completed in
Dividend payable 504,475,285.00
the Period
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
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
In first half of 2016, business of the Company remain stable basically, and convergence with the market
enviornment of current commercial vehicle and non-road machinery, business development still have certain
pressures
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Gross profit
Operating revenue Operating cost operating revenue operating cost profit ratio over
ratio
over same period over same period same period of
of last year of last year last year
According to industries
Auto parts 3,177,043,549.95 2,481,834,855.65 21.88% -0.45% -0.19% -0.21%
According to products
Auto fuel injection
1,890,457,569.65 1,418,546,330.93 24.96% 4.74% 6.36% -1.15%
system
Post-processing
1,159,240,371.67 965,574,610.52 16.71% -7.68% -8.09% 0.37%
system
Induction system 127,345,608.63 97,713,914.20 23.27% -2.64% -4.53% 1.52%
According to region
Domestic 3,026,559,194.16 2,338,364,070.74 22.74% -0.29% 0.14% -0.33%
Overseas 150,484,355.79 143,470,784.91 4.66% -3.55% -5.31% 1.77%
IV. Core competitive analysis
Core competence of the Company has no major changes in reporting period. More detail can be found in 2015 annual report.
V. Investment analysis
1. Situation of equity investment outside
(1) Situation of investment outside
□Applicable √Not applicable
The Company had no investment outside in the Period.
(2)Holding equity of financial enterprise
√ Applicable □ Not applicable
Proporti Gains
Proporti
Amount of on of and
Amount of on of
stock-holdin stock-ho Book value at loss in
Initial stock-holdin stock-ho
g at the lding at the end of the the Accounting Source
Name Type investment g at the end lding at
beginning of the period reporti subject of stock
cost(RMB) of the period the end
the period beginnin (RMB) ng
(Share) of the
(Share) g of the (RMB
period
period )
Financial
Guolian
Securities assets Subscri
Securities 12,000,000.00 18,000,000 0.95% 18,000,000 0.95% 12,000,000.00
company available for ption
Co., Ltd.
sales
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Nanjing
Hengtai Financial
Insurance Insurance assets Subscri
1,000,000.00 1,000,000 1.85% 1,000,000 1.85% 1,000,000.00
and company available for ption
Broker sales
Co., Ltd.
Total 13,000,000.00 19,000,000 -- 19,000,000 -- 13,000,000.00 0.00 -- --
(3)Situation of securities investment
√ Applicable □ Not applicable
Propor
tion of Proport
Amount of stock- Amount of ion of
Short
Variet stock-holdin holdin stock-holdi stock-h Book value at
Code of form Initial Gains and loss Accou Sourc
y of g at the g at ng at the olding the end of the
securitie of investment in the reporting nting e of
securit beginning of the end of the at the period
s secur cost(RMB) (RMB) subject stock
ies the period beginn period end of (RMB)
ities
(Share) ing of (Share) the
the period
period
Financ
ial
SDE Subsc
assets
Stock 600841 C 199,208,000.00 23,680,000 2.73% 20,470,000 2.36% 285,965,900.00 -3,534,881.87 riptio
availa
n
ble for
sales
Financ
Mira ial
Subsc
cle assets
Stock 002009 69,331,500.00 4,710,000 1.29% 4,710,000 1.29% 76,914,300.00 -20,818,200.00 riptio
Logi availa
n
stics ble for
sales
Total 268,539,500.00 28,390,000 -- 25,180,000 -- 362,880,200.00 -24,353,081.87 -- --
Disclosure date of 2012-03-24
securities investment
approval of Board 2013-06-04
report
(4) Statement of holding other listed companies’ equity
□Applicable √ Not applicable
The Company holding no other listed company’s equity in the Period
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
√ Applicable □ Not applicable
In 10 thousand Yuan
Amount
Amount of reserve
Relat of for
Whethe Amount Actual
Name ed Start date End date Determination principal devaluati
r related of trust Estimated gains/loss
of relati Type of trust of trust method of actual on of
trade or financin income es in
trustee onshi financing financing reward taking withdrawi
not g period
p back in ng (if
period applicable
)
Bank
financing, Anticipated
Bank, trust products 2016-01-0 2018-03-1 annual yield
N N 611,090 340,000 0 9,705.54 9,705.54
trust, and assets 6 5 agreed in the
management contract
plans
Total 611,090 -- -- -- 340,000 0 9,705.54 9,705.54
All refers to the self-owned capital of the Company. Amount for financing is the accumulate
Capital resource amount and the actual capital for trust financing is RMB 2 billion at most, and recyclable
within the limit.
Overdue un-received principal and
0
accumulated earnings amount
Lawsuit involved (if applicable) N
Disclosure date for approval from the
Board for trust financing (if 2016-04-19
applicable)
Disclosure date for approval from
board of shareholders for trust N
financing (if applicable)
(2) Investment of derivatives
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
(3) Entrustment loan
□ Applicable √ Not applicable
The Company has no entrustment loan in the Period
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
3. Application of raised proceeds
√ Applicable □ Not applicable
(1)Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand Yuan
Total raised proceeds 285,012.43
Total raised proceeds invested during the reporting period 9,525.71
Total accumulative raised proceeds invested 285,012.43
Total raised proceeds for new purposes during the reporting period 2,365
Total accumulative raised proceeds for new purposes 12,365
Proportion of the total accumulative raised proceeds for new purposes 4.34%
General application of raised proceeds
On 21 January 2012, the CSRC issued the reply on approving non-public issuance of Weifu High-technology Group Co., Ltd.
(ZJXK(2012)No.109), pursuant to which, the Company was approved to issue new shares not exceeding 112,858,000 by
non-public offering. On 10 February 2012, Jiangsu Gongzheng Tianye Certified Public Accountant issued capital verification report
(SGW(2012)No.B006), stating that as at 10 February 2012, Weifu High-tech has already issued 112,858,000 RMB common shares
(A-share) and raised capital proceeds of RMB2,866,028,910.00. after deduction of issuance expense of RMB15,904,657.07, the net
raise proceeds was RMB2,850,124,252.93.The relevant announcements (No. 2012-002, No. 2012-012) were published on Juchao
Information Website dated 1 February 2012 and 28 February 2012.
The Company held the 9th meeting of the 7th Board on 26 March 2013 and the 2012 annual general meeting on 23 May 2013 to
consider and approve the resolution on alteration to equity investment plan which set out certain adjustments to the industrialization
project relating to exhaust after-treatment system products. The relevant announcements (No.2013-001, No.2013-007, and
No.2013-014) were published on Juchao Information Website dated 28 March and 24 May 2013.
The Company held the 21st meeting of the 7th Board on 21 April 2015 and the 2014 annual general meeting on 28 May 2015 to
consider and approve the resolution on adjustment to plans and production capacity of certain investment projects funded with
raised proceeds and alteration to certain such investment projects, which mainly referred to the adjustments to the plans and
production capacity of the WAPS R&D and industrialization project, diesel common rail system spare parts production capacity
enhancement project as well as industry park construction project, and referred to alteration to the auto power battery materials
and power materials research and development project. The relevant announcements (No. 2015-003, No. 2015-010, and No.
2015-016) were published on Juchao Information Website dated 23 April and 29 May 2015.
The ”proposal of supplementary funding permanently with surplus raised-fund and interest income” was deliberated and approved
by the 5th session of 8th BOD held on 15 April 2016, agreed to supplemented current funds with the surplus raised-fund and interest
income permanently. The relevant announcements (No. 2016-002, No. 2016-008) were published on Juchao Information Website
dated19 April 2016.
By end of the reporting period, investments with raised-fund have completed and an aggregate of RMB 2,850,124,300 proceeds
raised has been invested.
(2) Situation of committed project of raised proceeds
√ Applicable □ Not applicable
In 10 thousand Yuan
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Investm
Projects Total Project
Amount of ent Reach
changed committe Total Predicted Profit feasibili
accumulated program the
Committed investment or not d investment Amount serviceable realize ty was
investment till the predict
projects &investment (includin investme after invested in condition d in change
till the period-e ed
of raised fund g nt of adjustment this period date of this d
period-end nd interes
changed raised (1) project year hugely
(2) (3)=(2)/( t or not
partially) capitals or not
1)
Investment project commitment
R&D of WAPS,
industrialization,
productivity expansion Y 62,032 59,667 4.04 59,667 100.00% 2015-12-31 5,999 N N
of diesel common rail
system parts
Construction project in
Y 57,750 57,750 7,156.67 57,750 100.00% 2015-12-31 10,129 Y N
industrial zone
Industrialization of tail
Y 26,000 26,000 26,000 100.00% 2015-06-30 7,258 N N
treatment system
Research institution
N 5,154 5,154 5,154 100.00% 2012-12-31 Y N
project
Auto power battery
materials and power
Y 10,000 0 N Y
battery research and
development project
Equity acquisition N 34,381.5 34,381.5 34,381.5 100.00% 2012-06-30 2,815 Y N
Liquid assets
N 90,000 89,694.93 89,694.93 100.00% Y N
supplementation
Permanent liquid assets
N 12,365 2,365 12,365 100.00% Y N
supplementation
Subtotal of
-- 285,317.5 285,012.43 9,525.71 285,012.43 -- -- 26,201 -- --
commitment projects
Investment orientation for fund arising out of plan
N/A
Total -- 285,317.5 285,012.43 9,525.71 285,012.43 -- -- 26,201 -- --
Situation about not Implementation of the national emission standard level IV brought substantial change to the industry
coming up to schemed condition. Routes using common rail technology have almost covered the entire national IV vehicle-based
progress or expected diesel engine market, which led that market demand for WAPS system had not been satisfied as expected.
revenue and the Meanwhile, due to the slowing macro economic growth and decrease of investment in infrastructure
reason(In specific facilities, commercial vehicles suffered a tough market, resulting in insufficient market demand for auto
project) exhaust gas rear processing system products, which in turn affected the expected revenue.
Explanation on great
changes of feasibility Not applicable
of project
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Amount, usage and
progress of using for
Not applicable
fund raising out of the
plan
Change of
implementation place
Not applicable
of investment project
of raised capitals
Applicable
Occurred in the Period
The Company has completed fund raising investment, with remaining proceeds of RMB23.65 million
which is used as capital for research and development and industrialization of WAPS system and
Adjustment of production capacity improvement of diesel common rail system components. In order to improve
implementation way utilization efficiency of the raised proceeds, decrease our financial expense and maximize the interests of
for investment project the Company and its shareholders, the Company convened the 5th meeting of the 8th board of directors on
of raised capitals 15 April 2016, to consider and approve the proposal relating to permanent liquidity supplement with the
remaining raised proceeds and relevant interest income, pursuant to which, the Company was allowed to
supplement liquidity permanently with the remaining raised proceeds and relevant interest income. The
relevant announcements (No. 2016-002, No. 2016-008) were published on Juchao Information Website
dated19 April 2016.
Applicable
According to the Verification Report of Fund-Raised Project Invested in Advance with Self-raised Funds of
WFHT (Su Gong W[2012] No. E1100) issued by Jiangsu Gongzheng Tianye Certified Public Accountants
Co., Ltd. Up to 29 February 2012, the actual investment funding for fund-raised project invested in advance
Regulation of
with self-raised funds amounting as 299.12 million Yuan, including 1. R&D of WAPS, industrialization,
implementation ways
productivity expansion of diesel common rail system parts: 180.05 million Yuan; 2. construction project in
of investment project
industrial zone: 16.62 million Yuan; 3. industrialization of tail treatment system: 28.56 million Yuan; 4.
of raised capitals
research institution project: 51.54 million Yuan; 5. Equity acquisition project: 22.35 million Yuan. On 31
March 2012, the Proposal of Replacing the Working Capital Input to Projects by Raised Capital was
deliberated and approved by 2nd extraordinary meeting of 7th session of the Board, agreed to replacing the
working capital input to projects by raised capital with 299.12 million Yuan.
Temporarily
supplement for the
Not applicable
current capitals with
idle raised capitals
Applicable
1. The Company has completed fund raising investment, with remaining proceeds of RMB23.65 million
which is used as capital for research and development and industrialization of WAPS system and
Amount surplus in
production capacity improvement of diesel common rail system components. Total expenses occurred for
implementation of
this project decreased mainly due to that the Company strengthened cost control, supervision and
raised proceeds and
management during the implementation of this project to strictly control expenditure provided that the
reasons
implementation effect of the project was promised. Besides, it was also attributable to adoption of resources
sharing model to reduce repeated input.
2. Since the implementation of fund raising investment, the Company has adopted special management in
16
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
relation to the raised proceeds which accrued relevant interest income when being deposited.
3. The Company convened the 5th meeting of the 8th board of directors on 15 April 2016, to consider and
approve the proposal relating to permanent liquidity supplement with the remaining raised proceeds and
relevant interest income, pursuant to which, the Company was allowed to supplement liquidity permanently
with the remaining raised proceeds and relevant interest income.
Usage and trend of
All the raise money has been used by the end of the report period.
unused raised capitals
Questions or other
situation while using
Not applicable
raised capitals and in
disclosure
(3)The changed project of raised proceeds
√ Applicable □ Not applicable
In 10 thousand Yuan
Accumulati Project
Total raised Amount Investment Predicted Reach the
ve funds Profit feasibility
funds plans actually program serviceable predicted
Project after Corresponding actually realized was changed
to invested invested till the condition interest
changed original project invested in this hugely or not
after in the period-end date of or not
ended as the year after project
changed (1) Period (3)=(2)/(1) project (Y/N)
Period (2) changed
R&D OF WAPS,
INDUSTRIALIZ
ATION,
Permanent PRODUCTIVIT
liquid assets Y EXPANSION 2,365 2,365 2,365 100.00% Y N
supplementation OF DIESEL
COMMON
RAIL SYSTEM
PARTS
R&D OF
WAPS, R&D OF WAPS,
INDUSTRIALI INDUSTRIALIZ
ZATION, ATION,
PRODUCTIVI PRODUCTIVIT
TY Y EXPANSION 59,667 4.04 59,667 100.00% 2015-12-31 5,999 N N
EXPANSION OF DIESEL
OF DIESEL COMMON
COMMON RAIL SYSTEM
RAIL SYSTEM PARTS
PARTS
Construction Construction
57,750 7,156.67 57,750 100.00% 2015-12-31 10,129 Y N
project in project in
17
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
industrial zone industrial zone
Auto power
battery materials
Permanent
and power
liquid assets 10,000 10,000 100.00% Y Y
battery research
supplementation
and development
project
Industrialization Industrialization
of tail treatment of tail treatment 26,000 26,000 100.00% 2015-06-30 7,258 N N
system system
Total -- 155,782 9,525.71 155,782 -- -- 23,386 -- --
I. Matters occurred during the reporting period
The Company has completed fund raising investment, with remaining proceeds of RMB23.65 million which is
used as capital for research and development and industrialization of WAPS system and production capacity
improvement of diesel common rail system components. In order to improve utilization efficiency of the raised
proceeds, decrease our financial expense and maximize the interests of the Company and its shareholders, the
Company convened the 5th meeting of the 8th board of directors on 15 April 2016, to consider and approve the
proposal relating to permanent liquidity supplement with the remaining raised proceeds and relevant interest
income, pursuant to which, the Company was allowed to supplement liquidity permanently with the remaining
raised proceeds and relevant interest income.
II. Occurred in previous year
(i) The Company held the 21st meeting of the 7th Board on 21 April 2015 and the 2014 annual general meeting on
28 May 2015 to consider and approve the resolution on adjustment to plans and production capacity of certain
Explanation on investment projects funded with raised proceeds and alteration to certain such investment projects. The relevant
reasons of the announcements (No. 2015-003, No. 2015-010, and No. 2015-016) were published on Juchao Information Website
changes, dated 23 April and 29 May 2015. Reasons for the adjustments and alteration and details thereof are set out below:
decision-makin 1. R&D OF WAPS, INDUSTRIALIZATION, PRODUCTIVITY EXPANSION OF DIESEL COMMON RAIL
g procedures SYSTEM PARTS
and information ①Reasons for alteration: since the State has clearly determined the time to implement the national IV emission
disclosure rules, market conditions experience substantial changes. There was a burst of increasing demands for common rail
(explain by products and spare parts. Meanwhile, WAPS system had limited development space in national IV auto-applicable
specific project) diesel machine, and market demands for WAPS system in non-road machinery market will be uncertain in future.
In order to adapt to market variations, the Company made adjustments to investment plans and production
capacity of this project funded with raised proceeds. In particular, it increased production capacity of common rail
spare parts and reduced that of WAPS system, aiming to meet both processing demands for common rail spare
parts and WAPS system in future through adjusting equipment injection structure and increasing flexibility of
processing. In addition, the Company increased appropriately the minimum liquidity required for high pressure
common rail spare parts. It seeks suitable opportunity to make subsequent injection to WAPS system with its own
capital when the relevant market is matured in terms of demands.
②Adjustments to the plans and production capacity of this project: subject to the total investment of RMB650
million remaining unchanged, investment for fixed assets is cut down to RMB440.73 million instead of the
original RMB500 million; liquidity investment is raised to RMB209.27 million instead of the original RMB150
million. WAP3 system (heavy) by the original program of the 200 thousand sets adjusted for 50 thousand sets,
common rail system components from the original program of the 11.8 million pieces adjusted to 19. 23 million
18
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
pieces.
③Completion date of this project is adjusted to 31 December 2015.
2. Construction project in industrial zone
① Reasons for alteration: since the State has clearly determined the time to implement the national IV emission
rules, market conditions experience substantial changes, there is a burst of increasing demands for common rail
products and uncertainty exists in market demands for WAPS system, the Company accordingly makes
adjustments to the investment plan and production capacity of this project in order to adapt to the changing market
demands.
②Adjustments to the plans and production capacity of this project: subject to the total investment of RMB650
million remaining unchanged, investment for fixed assets is raised to RMB599.15 million instead of the original
RMB572.50 million; liquidity investment is cut down to RMB50.85 million instead of the original RMB77.50
million, and additional liquidity required in subsequent periods will be funded with its own capital. WAP2 system
(medium) by the original program of the 100 thousand sets adjusted for 30 thousand sets, common rail system
components from the original program of the 810 thousand sets adjusted to 1.25 million sets. As for specific
implementation, processing for the key common rail high pressure pump spare parts was implemented by the
machinery system segment of Weifu headquarter office. With utilization of existing equipment, the Company was
able to eliminate certain equipment that did not satisfy the requirements for environment protection and crafts
processing, acquired processing facilities that delivered guaranteed and flexible performance, targeting to balance
its processing capability. Capital needed for equipment investment was mainly funded with its own capital. Plant
construction was mainly funded with raised proceeds. The general instalment of high pressure common rail pump
was undertaken by its wholly-owned subsidiary Weifu Auto Diesel. Equipment injection occurred during assemble
procedure was funded with the own capital injected by Weifu Auto Diesel rather than with raised proceeds. And it
was finally sold to Bosch Auto Diesel System Co., Ltd. by Weifu Auto Diesel.
③Completion date of this project is adjusted to 31 December 2015.
3. Auto power battery materials and power battery research and development project
① Reasons for alteration: since there exists extremely huge uncertainty to implement this project technically and
investment scale is large, the Company has always been prudent to implementation of this project to prevent from
investment risk. In order to improve utilization efficiency of raised proceeds and protect investors’ interests, the
Company decided to change the raised proceeds for this project to permanent supplementary liquidity which will
be all invested in its major business operation. Meanwhile, the Company will continue to follow up development
of power battery and continue cooperation in terms of production, study and research, and will make prompt
investment with its own capital as appropriate.
②Raised proceeds for this project changed to be permanent supplementary liquidity instead.
(II) The Company convened the 9th meeting of the 7th board of directors on 26 March 2013 and the 2012 annual
general meeting on 23 May 2013, to consider and approve the report relating to change of matters scheduled under
the fund raising investment. The relevant announcement was published on Juchao Information website dated 28
March 2013 and 24 May 2013, with announcement No. of 2013-001, 2013-007 and 2013-014.
The fund raising investment project subject to change refers to the “industrialization project of auto exhaust gas
rear disposal system products”. The major reason and specific changes are set out below:
①reason for change: taking into account the uncertainty arising from update of the prevailing national emission
regulations (namely from level III to level IV) and insufficient land supply at the time being, the original
investment plan of this fund raising investment project can no longer satisfy the development need of Wuxi Weifu
Lida Catalytic Purifier Company Limited which was a controlling subsidiary of the implementation entity. As
such, the Company needs to make corresponding adjustment to certain content of this project.
19
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
②the aggregate investment of this project has been changed to RMB340 million instead of the original RMB260
million, the gap of which will be filled up by its own capital in full.
③the completion date of this project has been changed to 30 June 2015.
Particular and
reasons of fail Implementation of the national emission standard level IV brought substantial change to the industry condition.
to reached the Routes using common rail technology have almost covered the entire national IV vehicle-based diesel engine
target advance market, which led that market demand for WAPS system had not been satisfied as expected. Meanwhile, due to
or anticipated the slowing macro economic growth and decrease of investment in infrastructure facilities, commercial vehicles
income (explain suffered a tough market, resulting in insufficient market demand for auto exhaust gas rear processing system
by specific products, which in turn affected the expected revenue.
project)
Major reasons for change of “auto power battery materials and power battery R&D project” into “permanent
Explanation on supplement for liquidity” occurred in previous year: there is substantial uncertainty for this project in terms of
major changes technology routes; in order to maximize the utilization efficiency of raised proceeds and to protect investors’
on project interests, the Company decided to change the raised proceeds of this project into permanent supplement for
feasibility after liquidity, which meant that they would be used for the Company’s principal business in full. However, the
project changed Company will continue to follow up development of power battery, continue cooperation between production,
study and research, and make investment with its own capital if necessary based on market conditions.
(4) Project of raised proceeds
Disclosure
Project of raised proceeds and summary Disclosure index
date
Being approved by “Reply of the Private Placement of WEIFU
HIGH-TECHNOLOGY GROUP CO.,LTD.” (Zheng Jian Xu Ke [2012] “Private Placement of the Company
No.109) issued by CSRC, the Company issuing 112,858,000 shares and Summary of Listing
privately with price of 25.395 Yuan/Share. The above mentioned shares 2012-02-28 Announcement” (Notice No.: 2012-12)
have been listed on Shenzhen Stock Exchange dated 29 February 2012. released on Juchao Website
Totally 2,866,028,900 Yuan are raised and net amount of 2,850,124,300 (www.cninfo.com.cn)
Yuan after deducted the issuing expenses.
Released on Juchao Website
Special Report on Fund-raised Deposit and Use of Funds for year of 2012 2013-03-28
(www.cninfo.com.cn)
The Proposal of Changing the Fund-raised Projects Investment Plan was
deliberated and approved by 9th meeting of 7th session of the Board held on ” Notice of Changing the Fund-raised
26 March 2013 and Annual General Meeting 2012 dated 23 May 2013. The Projects Investment Plan” (Notice No.:
2013-03-28
amount invested in industrialization of tail treatment system project 2013-007) released on Juchao Website
changed from 260 million Yuan originally to 340 million Yuan, the parts (www.cninfo.com.cn)
adjusted will funding with self-owned capital.
“Resolution Notice of AGM of 2012”
Resolution Notice of AGM of 2012 2013-05-24 (No.: 2013-014) released on Juchao
Website (www.cninfo.com.cn)
Released on Juchao Website
Special Report on Fund-raised Deposit and Use of Funds for year of 2013 2014-04-15
(www.cninfo.com.cn)
Special Report on Fund-raised Deposit and Use of Funds for year of 2014 2015-04-23 Released on Juchao Website
20
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(www.cninfo.com.cn)
On 21 April 2015, the Company holding the 21 st session of 7th BOD and
holding the AGM of 2014 on 28 May 2015 for deliberation and approved
”the proposal to adjust some
the proposal to adjust some fundraising project investment plans and
fundraising project investment plans
capacity and change some fundraising projects, adjusted the WAPS
and capacity and change some
research and development and industrialization and the diesel common rail 2015-04-23
fundraising projects” (No,: 2015-010)
system components production capacity promotion and the investment
released on Juchao Website
plans and capacity of industrial park construction projects, and changed the
(www.cninfo.com.cn)
“Auto power battery materials and power battery research and development
project” in raised-fund projects.
“Resolution Notice of AGM of 2014”
Resolution Notice of AGM of 2014 2015-05-29 (No.: 2015-016) released on Juchao
Website (www.cninfo.com.cn)
Special Report on Fund-raised Deposit and Actual Use of Funds for year of Released on Juchao Website
2016-04-19
2015 (www.cninfo.com.cn)
The ”proposal of supplementary
The ”proposal of supplementary funding permanently with surplus
funding permanently with surplus
raised-fund and interest income” was deliberated and approved by the 5th
2016-04-19 raised-fund and interest income” (No.:
session of 8th BOD held on 15 April 2016, agreed to supplemented current
2016-008) released on Juchao Website
funds with the surplus raised-fund and interest income permanently
(www.cninfo.com.cn)
4. Main subsidiaries and stock-jointly companies
√ Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies
In RMB
Main
Com
Indus produc Register Operating
pany Type Total assets Net Assets Operating profit Net profit
tries ts or capital revenue
name
service
Weif
Fuel
u
Auto injectio
Auto
Subsi mobil n 300,000
moti 1,548,248,926.98 1,256,445,022.30 784,142,134.06 125,512,090.44 106,134,116.81
diary e system ,000.00
ve
parts produc
Diese
tions
l
Post-pr
Weif Auto ocessin
u Subsi mobil g 502,596
2,585,223,851.94 1,422,390,822.32 1,218,577,303.58 147,877,397.39 130,828,227.30
Lead diary e system ,300.00
er parts produc
tions
21
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Fuel
Weif Auto injectio
u Subsi mobil n 346,286
985,104,243.03 755,284,123.53 251,871,381.48 32,628,225.42 33,326,813.22
Jinni diary e system ,825.80
ng parts produc
tions
Bosc
Fuel
h
Joint- Auto injectio
Auto USD
stock mobil n
mobi 241000 7,174,271,787.26 4,442,696,871.11 4,980,318,551.05 1,296,075,244.95 1,125,855,393.67
comp e system
le 000.00
any parts produc
Diese
tions
l
Gasoli
Zhon Joint- Auto
ne
glian stock mobil 600,620
system 4,100,314,335.38 3,267,836,197.22 6,785,544.55 862,334,303.80 862,587,593.21
Elect comp e ,000.00
produc
ronic any parts
tions
5. Major project invested by non-raised funds
□ Applicable √ Not applicable
No major project invested by non-raised funds in Period
VI. Prediction of business performance from January – September 2016
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
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
□ Applicable √ Not applicable
VIII. Explanation on “Qualified Opinion” of previous year from the Board
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
22
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
√□Applicable □Not applicable
The bonus scheme of the Company was formulated strictly in line with relevant regulation of Article of Association.
Profit distribution plan for year of 2015 was: based on total share capital of the Company1, 008,950,570 distribute cash dividend of
RMB 5.00 (tax included) for every 10 shares to all shareholders. The scheme was deliberated and approve by 5th session of 8th BOD
held on 15 April 2016 and AGM of 2015 held on 26 May 2016. The implementation of equity distribution plan for year of 2015
(Notice No.: 2016-016) was published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao
Website (http://www.cninfo.com.cn) dated 6 July 2016. And the equity distribution plan for year of 2015 was completed in July
2016.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully
Y
protected (Y/N):
Not
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N):
applicable
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year
XI. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time Place Way Type Reception Contents discussed and material provided
Scene of the
Spot Basic condition of the Company and views
2016-05-26 shareholders’ Institution Institution
research on market in 2016
general meeting
The Company answered 176 questions for
1 Jan. 2016 to 30 Written Public investors online through the investor
Office of the Board Individual
Jun. inquiry investor relations interactive
platform(http://irm.p5w.net/dqhd/sichuan/)
Telephone Basic condition of the Company and views
1 Jan. 2016 to 30 Public
Office of the Board communicat Individual on market in 2016, communication with
Jun. investor
ion investors by telephone more than 100
23
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section V. Important Events
I. Corporate governance
The actual corporate governance of the Company shows no major difference with the Company Law and relevant
regulations from CSRC.
II. Lawsuits
Significant lawsuits and arbitrations
□Applicable √Not applicable
The Company had no significant lawsuits or arbitrations in the Period.
Other lawsuits
□Applicable √Not applicable
III. Question from media
□ Applicable √ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Assets acquisition
□ Applicable √ Not applicable
The Company did not purchased assets in the Period
2. Sales of assets
□ Applicable √ Not applicable
The Company did not sell assets in the Period
3. Business combination
□ Applicable √ Not applicable
The Company has no business combined in the Period
VI. Implementation of the company’s equity incentive and the effects
□ Applicable √ Not applicable
No equity incentive in reporting period
24
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
VII. Significant related transaction
1. Related transaction connected to routine operations
√ Applicable □ Not applicable
Propo
Wheth Relate
rtion
Related Trading er over d Simila
Related Related in the
Related Pricin Related transaction amou limit the r
Date of Index of
transacti Related transacti g amount (in approved approv transa marke
relationship on transactio princip transacti 10
nt of
(in 10 ed ction t price disclosur disclosur
on on price the e e
n content al thousand thousand limited settle obtain
parties type same
Yuan) Yuan) or not ment ed
transa
(Y/N) mode
ction
Based 2016.04. “Predicti
Based
Weifu on fair 19 on of
Procure Procurem on the
Fine Associated value Market 0.77 Marke routine
ment of ent of 1,669.27 3,500 N contra
Machine company of the price % t price related
goods goods ct
ry market transacti
terms
price on for
Associated year of
company,
Based
Based 2016”
Bosch on fair (Notice
controlling Procure Procurem on the
Automo value Market 3.32 Marke No.:
subsidiary ment of ent of 7,187.91 15,000 N contra
bile of the price % t price 2016-005
of German goods goods ct
Diesel market ) and
Bosch terms
Company
price “Resoluti
on
Based Notice of
Based
Joint on fair AGM of
Weifu Procure Procurem on the
Environ
venture of
ment of ent of
value Market
57,293.93
26.49
135,000 N contra
Marke 2015”
Weifu of the price % t price was
ment goods goods ct
Leader market released
terms
price on
Based Juchao
Second Based Website
on fair
largest Procure Procurem on the respectiv
Robert value Market 2.06 Marke
shareholder ment of ent of 4,466.11 10,000 N contra ely dated
Bosch of the price % t price
of the goods goods ct 19 April
market
Company terms 2016 and
price
27 May
Based 2016
Based
Weifu on fair
on the
Fine Associated Sales of Sales of value Market 0.05 Marke
160.93 500 N contra
Machine company goods goods of the price % t price
ct
ry market
terms
price
Associated
Based
company, Based
Bosch on fair
controlling on the
Automo Sales of Sales of value Market 27.24 Marke
subsidiary 91,686.04 160,000 N contra
bile goods goods of the price % t price
of German ct
Diesel market
Bosch terms
price
Company
Based
Based
Joint on fair
Weifu on the
venture of Sales of Sales of value Market 0.35 Marke
Environ 1,173.47 4,000 N contra
Weifu goods goods of the price % t price
ment ct
Leader market
terms
price
Robert Second Sales of Sales of Based Market 0.02 Based Marke
largest 57.01 500 N
Bosch goods goods on fair price % on the t price
shareholder value contra
25
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
of the of the ct
Company market terms
price
Based
Based
on fair
on the
Industry Majority Payable value Market Marke
Other 0 100 N contra
Group shareholder rental fee of the price t price
ct
market
terms
price
Associated
Based
company, Based
Bosch Labor and on fair
controlling on the
Automo tech-servi value Market Marke
subsidiary Other 0 300 N contra
bile ce fee of the price t price
of German ct
Diesel payable market
Bosch terms
price
Company
Based
Second Based
Fee for on fair
largest on the
Robert tech-servi value Market Marke
shareholder Other 434.69 1,200 N contra
Bosch ce of the price t price
of the ct
payable market
Company terms
price
Based
Based
Joint on fair
Weifu Rental fee on the
venture of value Market Marke
Environ Other receivabl 0 250 N contra
Weifu of the price t price
ment e ct
Leader market
terms
price
Associated
Based
company, Based
Bosch Procurem on fair
controlling on the
Automo ent of value Market Marke
subsidiary Other 0 500 N contra
bile fixed of the price t price
of German ct
Diesel assets market
Bosch terms
price
Company
Based
Based
Joint Procurem on fair
Weifu on the
venture of ent of value Market Marke
Environ Other 17.09 Y contra
Weifu fixed of the price t price
ment ct
Leader assets market
terms
price
Based
Based
Joint on fair
Weifu Sales of on the
venture of value Market Marke
Environ Other fixed 14.19 Y contra
Weifu of the price t price
ment assets ct
Leader market
terms
price
Total -- -- 164,160.64 -- 330,850 -- -- -- -- --
Detail of sales return with major amount
Not applicable
involved
Report the actual implementation of the
The total amount from daily related transaction in reporting period still in the predicted
normal related transactions which were
amount that approved in Annual Shareholders’ General Meeting of 2015, the predicted
projected about their total amount by
amount of daily related transactions for year of 2016 at year-begin amounting as RMB
types during the reporting period(if
3,308,500,000 in total.
applicable)
Reasons for major differences between
trading price and market reference price Not applicable
(if applicable)
26
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
2. Related transaction incurred by purchase or sales of assets
□ Applicable √ Not applicable
No related transaction incurred by purchase or sales of assets in Period
3. Related transaction from jointly investment outside
□ Applicable √ Not applicable
No related transaction from jointly investment outside occurred in Period
4. Credits and liability of related party
□ Applicable √ Not applicable
The Company had no non-operation related liabilities or credits relations in Period
5. Other related transactions
□ Applicable √ Not applicable
The Company had no other related transactions in the reporting period
VIII. 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
IX. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.
(2) Contract
□ Applicable √ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□ Applicable √ Not applicable
The Company had no leasing in the reporting period.
2. Guarantee
√ Applicable □ Not applicable
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Related Actual date of Complete Guarante
Name of the
Announceme Guarante happening (Date Actual Guarante implemen e for
Company Guarantee type
nt disclosure e limit of signing guarantee limit e term tation or related
guaranteed
date agreement) not party
Guarantee of the Company for the subsidiaries
Related Actual date of Complete Guarante
Name of the
Announceme Guarante happening (Date Actual Guarante implemen e for
Company Guarantee type
nt disclosure e limit of signing guarantee limit e term tation or related
guaranteed
date agreement) not party
27
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Ningbo Tianli
Turbocharging Joint liability
2014-01-17 6,000 2013-12-24 6,000 3 years No No
Technology Co., guaranty
Ltd.
Total amount of approving guarantee for Total amount of actual occurred guarantee for
0 6,000
subsidiaries in report period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for subsidiaries Total balance of actual guarantee for subsidiaries at the
6,000 6,000
at the end of reporting period (B3) end of reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Related
Actual date of Complete Guarante
Name of the Announce
Guarantee happening (Date Actual Guarantee Guarantee implemen e for
Company ment
limit of signing guarantee limit type term tation or related
guaranteed disclosure
agreement) not party
date
Total amount of guarantee of the Company (total three abovementioned guarantee)
Total amount of approving guarantee in report Total amount of actual occurred guarantee in report
6,000
period (A1+B1+C1) period (A2+B2+C2)
Total amount of approved guarantee at the end of Total balance of actual guarantee at the end of report
6,000 6,000
report period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
0.49%
net assets of the Company(A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its related parties(D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio
0
exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the Company exceed 50%(F) 0
Total amount of the aforesaid three guarantees(D+E+F) 0
Explanations on possibly bearing joint and several liquidating responsibilities for undue
Not applicable
guarantees (if applicable)
Explanations on external guarantee against regulated procedures (if applicable) Not applicable
Explanation on guarantee with composite way
Nil
(1) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period
3. Other material contracts
□ Applicable √ Not applicable
The Company had no other material contracts in the reporting period.
4. Other material transactions
□ Applicable √ Not applicable
The Company had no other material transactions in the reporting period.
28
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
X. Commitments made by the Company or shareholders holding above 5% shares of the Company in
reporting period or occurred in the previous reporting period but continued to reporting period
□ Applicable √ Not applicable
There are no commitments made by the Company or shareholders holding above 5% shares of the Company in reporting period or
occurred in the previous reporting period but continued to the period
XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual report had not been audited.
XII. Penalty and rectification
□ Applicable √ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period
XIV. Other material events
√Applicable □ Not applicable
1. Wholly-owned subsidiary of the Company has investment intention on industry mergers & acquisitions
fund
On 31 May 2016, the Company held the 7th meeting of the 8th board of directors, to consider and approve the
resolution relating to the wholly-owned subsidiary of the Company proposing to establish industry merger &
acquisition funds. In order to accelerate the Company’s industrial upgrade and development speed, preserve
merger & acquisition projects, improve its comprehensive strength and realize development strategy, the
Company agreed with Ping’an Securities in reaching for initial cooperation plan. Weifu Auto Diesel, a
wholly-owned subsidiary of the Company, proposed to cooperate with Ping’an Ronghui which was established by
Ping’an Caizhi (a wholly-owned subsidiary of Ping’an Securities) to establish business merger & acquisition
funds. The relevant announcements (No. 2016-013 and No. 2016-015) were published on China Securities,
Securities Times, Hong Kong Commercial Daily and Juchao Information website（http://www.cninfo.com.cn）.
Till now, this matter is being prepared.
2. Progress of the Company’s receipt of relocation compensation
In August 2010, the Company commenced relocation related works according to the general urban planning of
Wuxi government, the details of which was set out in the announcement of No. 2010-023. In September 2013, the
Company entered into the Acquisition Contract of the State-owned Land Use Right of Wuxi with Wuxi Land
Reservation Center, pursuant to which, the Company shall receive relocation compensation of RMB503,811,600,
the details of which was set out in the announcement of No. 2013-022. In particular, the Company received
29
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
relocation compensation of RMB7.9 million, RMB145.23 million (announcement No. 2014-028), RMB145.23
million (announcement No. 2015-014), RMB180.15 million (announcement No. 2016-001) and RMB25.3016
million respectively in October 2013, October 2014, May 2015, December 2015 and June 2016, respectively. As
at the end of the reporting period, the Company has received the relocation compensation of RMB503,811,600 in
full. With respect to the compensation, it has been accounted for under the requirements of the Note 3 of
Enterprise Accounting Principles and No.16 of Enterprise Accounting Principles-government grant promulgated
by the Ministry of Finance. The related announcement was published on China Securities, Securities Times, Hong
Kong Commercial Daily and Juchao Information website（http://www.cninfo.com.cn）.
XV. Corporate bond
Whether the Company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due
but not fully cashed on the approval date of annual report or not
No
30
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
In share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
New
Bonus ion of Proportio
Amount Proportion shares Others Subtotal Amount
shares public n
issued
reserve
I. Restricted shares 78,952 0.01% -375 -375 78,577 0.01%
1. State Shareholdings 0
2. State-owned corporate
0
shares
3. Other domestic shares 78,952 0.01% -375 -375 78,577 0.01%
Including: domestic corporate
0
shares
Domestic nature person
78,952 0.01% -375 -375 78,577 0.01%
shares
4. Foreign shares 0
Including: Foreign corporate
0
shares
Foreign nature person
0
shares
II. Unrestricted shares 1,008,871,618 99.99% 375 375 1,008,871,993 99.99%
1. RMB Ordinary shares 836,491,618 82.90% 375 375 836,491,993 82.90%
2. Domestically listed foreign
172,380,000 17.09% 172,380,000 17.09%
shares
3. Foreign listed foreign shares 0 0
4. Other 0 0
III. Total shares 1,008,950,570 100.00% 0 0 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
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
31
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
□Applicable √Not applicable
Explanation on changes of total shares and shareholder structure as well as assets and liability structure
□Applicable √Not applicable
II. 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
54,289 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
Total common Amount of Amount of Number of share
Proportion Changes
Nature of shareholders restrict un-restrict pledged/frozen
Full name of Shareholders of shares in report
shareholder at the end of common common State of Amo
held period
report period shares held shares held share unt
Wuxi Industry Development State-owne
20.22% 204,059,398 0 204,059,398
Group Co., Ltd. d corporate
Foreign
ROBERT BOSCH GMBH 14.16% 142,841,400 0 142,841,400
corporate
China Securities Finance State-owne
2.79% 28,172,515 -2,333,854 28,172,515
Corporation Limited d corporate
Foreign
UBS AG 2.03% 20,526,641 -1,714,307 20,526,641
corporate
Kangjian Assets Management Foreign
1.52% 15,351,892 -529,900 15,351,892
Company –Client’s fund corporate
Central Huijin Assets State-owne
1.27% 12,811,200 0 12,811,200
Management Co., Ltd. d corporate
BBH BOS S/A FIDELITY FD Foreign
1.23% 12,382,279 0 12,382,279
- CHINA FOCUS FD corporate
Puxin Investment Company- Foreign
1.12% 11,347,877 0 11,347,877
Client’s fund corporate
MERRILL LYNCH Foreign
1.07% 10,828,901 -474,724 10,828,901
INTERNATIONAL corporate
JPMORGAN CHASE
Foreign
BANK,NATIONAL 0.97% 9,742,287 2,009,900 9,742,287
corporate
ASSOCIATION
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 common shareholders with un-restrict shares held
Amount of un-restricted Type of shares
Shareholders’ name common shares held at
Type Amount
period-end
32
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
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
China Securities Finance Corporation Limited 28,172,515 RMB common shares 28,172,515
UBS AG 20,526,641 RMB common shares 20,526,641
Kangjian Assets Management Company –Client’s fund 15,351,892 RMB common shares 15,351,892
Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common shares 12,811,200
Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 12,382,279 12,382,279
foreign shares
Puxin Investment Company- Client’s fund 11,347,877 RMB common shares 11,347,877
MERRILL LYNCH INTERNATIONAL 10,828,901 RMB common shares 10,828,901
JPMORGAN CHASE BANK,NATIONAL ASSOCIATION 9,742,287 RMB common shares 9,742,287
Among the top ten shareholders, there has no associated relationship
Expiation on associated relationship or consistent actors between Wuxi Industry Development Croup Co., Ltd. and other
within the top 10 un-restrict common shareholders and shareholders, the first largest shareholder of the Company; and they
between top 10 un-restrict common shareholders and top 10 do not belong to the consistent actionist regulated by the
common shareholders Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Explanation on top 10 shareholders involving margin
Not applicable
business (if applicable) (see note 4)
Whether top ten common 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.
III. 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.
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable √Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the
Company and its concerted action person
33
无锡威孚高科技集团股份有限公司 2016 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 2016 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
Found more in annual report 2015 for the changes of shares held by directors, supervisors and senior executives
II. Resignation and dismissal of directors, supervisors and senior executives
□Applicable √ Not applicable
There are no changes in resignation and dismissal of directors, supervisors and senior executives in the Period, found more in annual
report of 2015
35
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2016-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,224,397,416.60 3,274,679,732.54
Settlement provisions
Capital lent
Financial liability measured by fair value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable 1,016,588,650.43 1,031,886,230.18
Accounts receivable 1,738,607,467.83 1,261,163,184.87
Accounts paid in advance 77,461,293.47 73,326,550.19
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable 2,249,341.69 3,281,939.96
Dividend receivable 361,572,367.40 3,600,000.00
Other receivables 12,278,400.19 8,817,661.08
Purchase restituted finance asset
Inventories 907,280,742.58 865,574,792.41
Divided into assets held for sale
Non-current asset due within one year
Other current assets 4,612,373,442.46 2,016,204,649.28
Total current assets 9,952,809,122.65 8,538,534,740.51
Non-current assets:
36
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Loans and payments on behalf
Finance asset available for sales 696,267,961.00 694,398,661.00
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 2,884,406,007.82 3,283,584,245.43
Investment property 19,733,596.73 20,233,111.93
Fixed assets 2,342,751,201.54 2,320,627,323.42
Construction in progress 156,065,946.03 162,402,752.68
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 354,930,608.85 360,610,837.42
Expense on Research and Development
Goodwill 1,784,086.79 1,784,086.79
Long-term expenses to be apportioned 14,224,114.08 14,004,911.64
Deferred income tax asset 160,033,019.01 158,873,725.37
Other non-current asset 113,614,653.09 149,038,672.85
Total non-current asset 6,743,811,194.94 7,165,558,328.53
Total assets 16,696,620,317.59 15,704,093,069.04
Current liabilities:
Short-term loans 263,000,000.00 360,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Financial liability measured by fair value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable 624,360,290.69 630,682,394.24
Accounts payable 1,688,915,601.06 1,463,607,938.95
Accounts received in advance 38,372,570.85 33,545,363.49
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 173,259,709.89 245,070,941.07
Taxes payable 54,613,352.02 52,389,865.33
Interest payable 3,640,952.21 778,673.59
Dividend payable 504,475,285.00
Other accounts payable 54,891,464.32 49,333,826.26
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
37
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Non-current liabilities due within 1 year 60,000,000.00 60,000,000.00
Other current liabilities
Total current liabilities 3,465,529,226.04 2,895,409,002.93
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable 18,174,545.00 18,174,545.00
Long-term wages payable 96,350,000.00 96,350,000.00
Special accounts payable 49,407,023.28 44,725,048.69
Projected liabilities
Deferred income 413,902,821.00 400,657,991.06
Deferred income tax liabilities 25,524,818.14 35,499,320.90
Other non-current liabilities
Total non-current liabilities 603,359,207.42 595,406,905.65
Total liabilities 4,068,888,433.46 3,490,815,908.58
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 3,396,935,227.97 3,396,935,227.97
Less: Inventory shares
Other comprehensive income 132,228,783.76 188,436,372.50
Reasonable reserve 1,364,550.30 914,648.09
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 7,116,984,209.55 6,677,890,958.83
Total owner’s equity attributable to parent company 12,166,563,837.58 11,783,228,273.39
Minority interests 461,168,046.55 430,048,887.07
Total owner’s equity 12,627,731,884.13 12,213,277,160.46
Total liabilities and owner’s equity 16,696,620,317.59 15,704,093,069.04
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
38
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 662,491,750.00 1,739,313,657.29
Financial liability measured by fair value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable 199,862,327.05 159,630,301.53
Accounts receivable 635,579,363.08 537,504,587.17
Account paid in advance 46,692,751.68 50,246,196.23
Interest receivable 33,287.67
Dividends receivable 352,802,998.25 3,600,000.00
Other receivables 50,575,831.27 81,906,796.95
Inventories 152,754,826.26 151,832,151.38
Divided into assets held for sale
Non-current assets maturing within one year
Other current assets 4,482,280,319.07 2,038,225,831.05
Total current assets 6,583,040,166.66 4,762,292,809.27
Non-current assets:
Available-for-sale financial assets 610,327,961.00 608,458,661.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,097,687,016.97 4,241,205,473.10
Investment property
Fixed assets 1,425,906,965.23 1,417,143,347.25
Construction in progress 36,620,395.94 60,582,501.19
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 197,304,169.19 199,636,812.43
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 88,864,741.81 86,269,470.27
Other non-current assets 48,865,247.58 80,413,247.85
Total non-current assets 6,505,576,497.72 6,693,709,513.09
Total assets 13,088,616,664.38 11,456,002,322.36
Current liabilities:
Short-term borrowings 180,000,000.00 230,000,000.00
Financial liability measured by fair value and with variation reckoned into
39
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
current gains/losses
Derivative financial liability
Notes payable 142,215,182.46 218,219,397.80
Accounts payable 572,217,955.97 473,825,553.93
Accounts received in advance 1,914,255.80 4,754,011.37
Wage payable 89,956,989.34 118,032,003.11
Taxes payable 25,891,786.30 16,992,552.61
Interest payable 292,886.11 292,886.11
Dividend payable 504,475,285.00
Other accounts payable 1,069,309,017.33 12,757,135.96
Divided into liability held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 2,586,273,358.31 1,074,873,540.89
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 96,350,000.00 96,350,000.00
Special accounts payable 31,141,941.17 26,459,966.58
Projected liabilities
Deferred income 390,096,763.92 382,179,400.68
Deferred income tax liabilities 23,334,491.24 33,253,477.50
Other non-current liabilities
Total non-current liabilities 540,923,196.33 538,242,844.76
Total liabilities 3,127,196,554.64 1,613,116,385.65
Owners’ equity:
Share capita 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 3,427,939,852.32 3,427,939,852.32
Less: Inventory shares
Other comprehensive income 132,228,783.76 188,436,372.50
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 4,882,200,407.66 4,707,458,645.89
Total owner’s equity 9,961,420,109.74 9,842,885,936.71
Total liabilities and owner’s equity 13,088,616,664.38 11,456,002,322.36
40
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 3,366,476,452.49 3,390,437,923.64
Including: Operating income 3,366,476,452.49 3,390,437,923.64
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 3,051,777,186.87 3,034,775,367.69
Including: Operating cost 2,633,281,983.25 2,643,639,033.68
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 16,235,346.56 16,163,525.65
Sales expenses 92,799,369.25 85,114,812.69
Administration expenses 314,596,534.92 293,774,077.81
Financial expenses -2,909,491.43 -4,167,369.67
Losses of devaluation of asset -2,226,555.68 251,287.53
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 711,952,563.17 782,338,464.77
Including: Investment income on affiliated company and joint venture 593,102,462.02 606,080,898.87
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 1,026,651,828.79 1,138,001,020.72
Add: Non-operating income 18,747,382.73 77,198,017.61
Including: Disposal gains of non-current asset 724,772.79 16,067,700.28
Less: Non-operating expense 2,335,822.02 56,924,343.71
Including: Disposal loss of non-current asset 1,461,331.21 814,848.79
IV. Total Profit (Loss is listed with “-”) 1,043,063,389.50 1,158,274,694.62
Less: Income tax expense 68,314,427.18 88,185,218.04
V. Net profit (Net loss is listed with “-”) 974,748,962.32 1,070,089,476.58
Net profit attributable to owner’s of parent company 943,568,535.72 1,045,987,200.83
Minority shareholders’ gains and losses 31,180,426.60 24,102,275.75
VI. Net after-tax of other comprehensive income -56,207,588.74 123,791,917.50
Net after-tax of other comprehensive income attributable to owners of parent
-56,207,588.74 123,791,917.50
company
(I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit plan
41
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
liability or asset
2. Share of the other comprehensive income of the investee accounted for
using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified
-56,207,588.74 123,791,917.50
subsequently to profit or loss
1. Share of the other comprehensive income of the investee accounted for
using equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale
-56,207,588.74 123,791,917.50
financial assets
3. Gains or losses arising from reclassification of held-to-maturity
investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow
hedging instruments
5. Translation differences arising on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 918,541,373.58 1,193,881,394.08
Total comprehensive income attributable to owners of parent Company 887,360,946.98 1,169,779,118.33
Total comprehensive income attributable to minority shareholders 31,180,426.60 24,102,275.75
VIII. Earnings per share:
(i) Basic earnings per share 0.94 1.03
(ii) Diluted earnings per share 0.94 1.03
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 984,069,968.80 880,233,176.47
Less: Operating cost 808,344,072.54 693,408,205.57
Operating tax and extras 3,888,794.42 49,660.74
Sales expenses 20,239,016.93 36,690,749.38
Administration expenses 126,327,383.34 101,127,787.76
Financial expenses -6,167,195.97 -4,679,551.52
Losses of devaluation of asset 70,937.80 906,328.70
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 654,795,209.22 764,430,263.87
42
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Including: Investment income on affiliated company and joint venture 537,117,080.67 572,172,697.97
II. Operating profit (Loss is listed with “-”) 686,162,168.96 817,160,259.71
Add: Non-operating income 14,621,604.78 74,904,050.65
Including: Disposal gains of non-current asset 461,816.10 15,891,236.49
Less: Non-operating expense 808,445.02 55,111,600.42
Including: Disposal loss of non-current asset 591,980.61 690,888.31
III. Total Profit (Loss is listed with “-”) 699,975,328.72 836,952,709.94
Less: Income tax expense 20,758,281.95 35,801,374.52
IV. Net profit (Net loss is listed with “-”) 679,217,046.77 801,151,335.42
V. Net after-tax of other comprehensive income -56,207,588.74 123,791,917.50
(I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit plan
liability or asset
2. Share of the other comprehensive income of the investee accounted for
using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified
-56,207,588.74 123,791,917.50
subsequently to profit or loss
1. Share of the other comprehensive income of the investee accounted for
using equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale
-56,207,588.74 123,791,917.50
financial assets
3. Gains or losses arising from reclassification of held-to-maturity
investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow
hedging instruments
5. Translation differences arising on translation of foreign currency
financial statements
6. Other
VI. Total comprehensive income 623,009,458.03 924,943,252.92
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 2,605,746,532.90 3,678,069,702.35
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
43
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of amount from disposal financial assets that measured by fair
value and with variation reckoned into current gains/losses
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 15,501,767.26 22,523,565.62
Other cash received concerning operating activities 17,733,683.49 26,798,281.02
Subtotal of cash inflow arising from operating activities 2,638,981,983.65 3,727,391,548.99
Cash paid for purchasing commodities and receiving labor service 1,589,143,730.33 2,456,249,486.21
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 492,300,006.76 461,724,147.75
Taxes paid 223,331,049.84 249,318,804.79
Other cash paid concerning operating activities 140,666,181.77 121,812,959.39
Subtotal of cash outflow arising from operating activities 2,445,440,968.70 3,289,105,398.14
Net cash flows arising from operating activities 193,541,014.95 438,286,150.85
II. Cash flows arising from investing activities:
Cash received from recovering investment 3,452,670,890.00 1,909,218,450.02
Cash received from investment income 727,664,592.58 847,778,190.90
Net cash received from disposal of fixed, intangible and other long-term
49,158,379.90 3,149,480.44
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 30,296,467.00 145,230,000.00
Subtotal of cash inflow from investing activities 4,259,790,329.48 2,905,376,121.36
Cash paid for purchasing fixed, intangible and other long-term assets 226,897,693.98 267,700,189.90
Cash paid for investment 6,110,900,000.00 3,149,457,761.02
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 57,116.41 37,388,366.46
Subtotal of cash outflow from investing activities 6,337,854,810.39 3,454,546,317.38
Net cash flows arising from investing activities -2,078,064,480.91 -549,170,196.02
III. Cash flows arising from financing activities
Cash received from absorbing investment 8,419,964.00
Including: Cash received from absorbing minority shareholders’ investment
8,419,964.00
by subsidiaries
Cash received from loans 250,000,000.00 260,000,000.00
Cash received from issuing bonds
44
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 250,000,000.00 268,419,964.00
Cash paid for settling debts 347,000,000.00 365,000,000.00
Cash paid for dividend and profit distributing or interest paying 5,277,671.94 418,849,926.26
Including: Dividend and profit of minority shareholder paid by subsidiaries 4,000,000.00
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 352,277,671.94 783,849,926.26
Net cash flows arising from financing activities -102,277,671.94 -515,429,962.26
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents -1,986,801,137.90 -626,314,007.43
Add: Balance of cash and cash equivalents at the period -begin 3,040,315,198.85 2,028,227,816.93
VI. Balance of cash and cash equivalents at the period –end 1,053,514,060.95 1,401,913,809.50
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 793,334,844.25 993,616,855.94
Write-back of tax received
Other cash received concerning operating activities 1,103,292,123.70 431,928,273.04
Subtotal of cash inflow arising from operating activities 1,896,626,967.95 1,425,545,128.98
Cash paid for purchasing commodities and receiving labor service 439,155,764.29 752,532,601.43
Cash paid to/for staff and workers 196,948,347.05 195,324,054.92
Taxes paid 53,074,955.83 40,340,377.96
Other cash paid concerning operating activities 33,496,708.65 20,494,047.59
Subtotal of cash outflow arising from operating activities 722,675,775.82 1,008,691,081.90
Net cash flows arising from operating activities 1,173,951,192.13 416,854,047.08
II. Cash flows arising from investing activities:
Cash received from recovering investment 3,325,000,000.00 2,026,218,450.02
Cash received from investment income 698,900,348.97 834,174,339.90
Net cash received from disposal of fixed, intangible and other long-term
48,066,222.19 2,751,944.43
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 25,301,600.00 145,230,000.00
Subtotal of cash inflow from investing activities 4,097,268,171.16 3,008,374,734.35
Cash paid for purchasing fixed, intangible and other long-term assets 134,171,768.94 161,093,724.45
Cash paid for investment 6,155,900,000.00 3,172,226,391.02
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 57,116.41 37,388,366.46
Subtotal of cash outflow from investing activities 6,290,128,885.35 3,370,708,481.93
Net cash flows arising from investing activities -2,192,860,714.19 -362,333,747.58
III. Cash flows arising from financing activities
45
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Cash received from absorbing investment
Cash received from loans 180,000,000.00 230,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 180,000,000.00 230,000,000.00
Cash paid for settling debts 230,000,000.00 260,000,000.00
Cash paid for dividend and profit distributing or interest paying 3,489,380.28 411,841,389.29
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 233,489,380.28 671,841,389.29
Net cash flows arising from financing activities -53,489,380.28 -441,841,389.29
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents -1,072,398,902.34 -387,321,089.79
Add: Balance of cash and cash equivalents at the period -begin 1,734,531,427.66 1,159,462,935.71
VI. Balance of cash and cash equivalents at the period –end 662,132,525.32 772,141,845.92
46
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
This Period
Owners’ equity attributable to parent company
Other
equity Les
Provi
instrument s:
sion
Item Perpe Inv Other Minority Total owners’
Pre Reasonable of
Share capital tual Capital reserve ento comprehensive Surplus reserve Retained profit interests equity
fer Ot reserve gener
capit ry income
red he al
al shar
sto r risk
secur es
ck
ities
I. Balance at the
1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
end of the last year
Add: Changes of
accounting policy
Error correction of
the last period
Enterprise
combine under
the same control
Other
II. Balance at the
beginning of this 1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
year
III. Increase/
-56,207,588.74 449,902.21 439,093,250.72 31,119,159.48 414,454,723.67
Decrease in this
47
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
year (Decrease is
listed with “-”)
(i)Total
comprehensive -56,207,588.74 943,568,535.72 31,180,426.60 918,541,373.58
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
-504,475,285.00 -504,475,285.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -504,475,285.00 -504,475,285.00
shareholders)
48
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
4. 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. Other
(V) Reasonable
449,902.21 -61,267.12 388,635.09
reserve
1. Withdrawal in
8,222,799.77 1,043,772.54 9,266,572.31
the report period
2. Usage in the
7,772,897.56 1,105,039.66 8,877,937.22
report period
(VI)Others
IV. Balance at the
end of the report 1,008,950,570.00 3,396,935,227.97 132,228,783.76 1,364,550.30 510,100,496.00 7,116,984,209.55 461,168,046.55 12,627,731,884.13
period
49
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Last Period
In RMB
Last Period
Owners’ equity attributable to the parent Company
Other
equity
instrument Less
Perp :
Provis
Item etua Inve Other Minority Total owners’
Pre Reasonable ion of
Share capital l Capital reserve ntor comprehensive Surplus reserve Retained profit interests equity
ferr Ot reserve gener
capi y income
ed he al risk
tal shar
sto r
secu es
ck
ritie
s
I. Balance at the
1,020,200,992.00 3,635,684,413.04 121,598,365.00 867,353.00 510,100,496.00 5,570,583,069.92 404,075,770.46 11,263,110,459.42
end of the last year
Add: Changes of
accounting policy
Error correction of
the last period
Enterprise
combine under the
same control
Other
II. Balance at the
beginning of this 1,020,200,992.00 3,635,684,413.04 121,598,365.00 867,353.00 510,100,496.00 5,570,583,069.92 404,075,770.46 11,263,110,459.42
year
III. Increase/
-11,250,422.00 -238,749,185.07 66,838,007.50 47,295.09 1,107,307,888.91 25,973,116.61 950,166,701.04
Decrease in this
50
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
year (Decrease is
listed with “-”)
(i) Total
comprehensive 66,838,007.50 1,515,388,285.71 37,375,926.49 1,619,602,219.70
income
(ii) Owners’
devoted and -11,250,422.00 -238,749,185.07 12,812,655.54 -237,186,951.53
decreased capital
1.Common shares
invested by 12,812,655.54 12,812,655.54
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4 Other -11,250,422.00 -238,749,185.07 -249,999,607.07
(III) Profit
-408,080,396.80 -24,324,710.00 -432,405,106.80
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -408,080,396.80 -24,324,710.00 -432,405,106.80
shareholders)
51
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
4. 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. Other
(V) Reasonable
47,295.09 109,244.58 156,539.67
reserve
1. Withdrawal in
17,777,214.23 2,228,444.50 20,005,658.73
the report period
2. Usage in the
17,729,919.14 2,119,199.92 19,849,119.06
report period
(VI)Others
IV. Balance at the
end of the report 1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
period
52
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
equity instrument
Less:
Perpet
Pref Inve Other
Item ual Reasonable Total owners’
Share capital erre Capital reserve ntory comprehensive Surplus reserve Retained profit
capita Othe reserve equity
d share income
l r
stoc s
securi
k
ties
I. Balance at the end of the last year 1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this
1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
year
III. Increase/ Decrease in this year
-56,207,588.74 174,741,761.77 118,534,173.03
(Decrease is listed with “-”)
(i) Total comprehensive income -56,207,588.74 679,217,046.77 623,009,458.03
(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
53
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
equity with share-based payment
4. Other
(III) Profit distribution -504,475,285.00 -504,475,285.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-504,475,285.00 -504,475,285.00
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. Other
(V) Reasonable reserve
1. Withdrawal in the report period 1,698,128.36 1,698,128.36
2. Usage in the report period 1,698,128.36 1,698,128.36
(VI)Others
IV. Balance at the end of the report
1,008,950,570.00 3,427,939,852.32 132,228,783.76 510,100,496.00 4,882,200,407.66 9,961,420,109.74
period
54
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Last period
In RMB
Last period
Other
equity
instrument Less:
Perpe Inve Other
Item Pref Reasonable Total owners’
Share capital tual Capital reserve ntory comprehensive Surplus reserve Retained profit
erre reserve equity
capita Oth share income
d
l er s
stoc
securi
k
ties
I. Balance at the end of the last year 1,020,200,992.00 3,666,689,037.39 121,598,365.00 510,100,496.00 3,908,431,926.63 9,227,020,817.02
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this
1,020,200,992.00 3,666,689,037.39 121,598,365.00 510,100,496.00 3,908,431,926.63 9,227,020,817.02
year
III. Increase/ Decrease in this year
-11,250,422.00 -238,749,185.07 66,838,007.50 799,026,719.26 615,865,119.69
(Decrease is listed with “-”)
(i) Total comprehensive income 66,838,007.50 1,207,107,116.06 1,273,945,123.56
(ii) Owners’ devoted and
-11,250,422.00 -238,749,185.07 -249,999,607.07
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
55
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
4. Other -11,250,422.00 -238,749,185.07 -249,999,607.07
(III) Profit distribution -408,080,396.80 -408,080,396.80
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-408,080,396.80 -408,080,396.80
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. Other
(V) Reasonable reserve
1. Withdrawal in the report period 4,167,337.97 4,167,337.97
2. Usage in the report period 4,167,337.97 4,167,337.97
(VI)Others
IV. Balance at the end of the report
1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
period
56
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
III. Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to RMB 303.4355 million.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A shares 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
57
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
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 GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,
added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB
680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCH
is the second majority shareholder of the Company.
In March 2013, the profit distribution re-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting RMB 1,020,200,992 up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the
cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation
Limited Shenzhen Branch on September 16, 2015; after the cancellation of repurchase shares, the company’s
paid-up capital (capital) becomes RMB 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 City
Registered number: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
The Company sets up Administration Department, Engineering Technology Research Institution, Human
Resources Department, Office of the Board, Risk Management Department, Information Systems Department,
Market & Strategy Plan Department, Party-masses Security Department, Finance Control Department, Project
Purchase Department, Manufacturing Quality Department, MS Business Segment, and subsidiaries such as Wuxi
Weifu Leader Catalytic Converter Co., Ltd., Nanjing Weifu Jinning Co., Ltd., and Wuxi Weifu Automotive Diesel
System Co., Ltd.
3. Business nature and major operation activities of the Company
Operation scope of the Company: technological development and consultancy service of machinery industry;
internal combustion engine fuel system product, fuel system test instrument and equipment manufacturing;
wholesale of dangerous chemicals (operates in line with the lists in license); general machinery, hardware and
electrical, chemical products and raw materials (other than chemical dangerous), auto spare parts, autos (other
than autos under-9 seats); repair of engine; 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. (items subject to approvals should be operated
after approval by authorities )
Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
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 23 August
2016.
Shareholding Registered Stateme
ratio (%) Proportion capital (in nt
Shortname
Name of subsidiary of votes 10 Business scope consolid
of subsidiary Indire
Directly (%) thousand ate
ctly Yuan) (Y/N)
Internal-combustio
Weifu
Nanjing Weifu Jinning Co., Ltd. 80.00 -- 80.00 34,628.70 n engine and Y
Jinning
accessories
Wuxi Weifu Leader Catalytic Converter Co., Weifu Purifier and
94.81 -- 94.81 50,259.63 Y
Ltd. Leader muffler
Internal-combustio
Weifu
Weifu Mashan Pump Glib Co., Ltd. 100.00 -- 100.00 16500 n engine and Y
Mashan
accessories
Internal-combustio
Weifu
Wuxi Weifu Chang’an Co., Ltd. 100.00 -- 100.00 6,000 n engine and Y
Chang’an
accessories
Internal-combustio
Wuxi Weifu Automotive Diesel System Co., Weifu Diesel
100.00 -- 100.00 30,000 n engine and Y
Ltd. System
accessories
Weifu
Wuxi Weifu International Trade Co. Ltd. International 100.00 -- 100.00 3,000 International trade Y
Trade
Internal-combustio
Wuxi Weifu ITM Supercharging Technique Co.,
Weifu ITM 100.00 -- 100.00 16,000 n engine and Y
Ltd.
accessories
Internal-combustio
Wuxi Weifu Schmidt Power System Spare Parts Weifu
66.00 -- 66.00 4,800 n engine and Y
Co., Ltd. Schmidt
accessories
Internal-combustio
Ningbo Weifu Tianli Supercharging Technique
Weifu Tianli 51.00 -- 51.00 10,469 n engine and Y
Co., Ltd.
accessories
Internal-combustio
Weifu
Anhui Weifu Tianshi Machinery Co., Ltd. 52.00 -- 52.00 1,000 n engine and Y
Tianshi
accessories
Internal-combustio
Kunming
Kunming Xitong Machinery Co., Ltd. 70.00 -- 70.00 400 n engine and Y
Xitong
accessories
Weifu
Wuxi Weifu-Autocam Fine Machinery Co. Ltd. 51.00 -- 51.00 USD1,510 Auto parts Y
Autocam
Weifu Purifier and
Wuxi Weifu Leader Catalytic Converter
Leader -- 60.00 60.00 1,000.00 muffler Y
(Wuhan) Co., Ltd.
(Wuhan)
Note: the Company completed capital increase of RMB120 million for Weifu Mashan during this reporting period. Upon completion
of the capital increase, the registered capital of Weifu Mashan increased from RMB 45 million to RMB165 million. The Company
completed capital increase of RMB150 million for Weifu Chang’an during this reporting period. Upon completion of the capital
increase, the registered capital of Weifu Chang’an increased from RMB60 million to RMB210 million. Business registration for
Weifu Chang’an is in the process.
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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 41 accounting rules revised and issued dated 15 February 2006
and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact
sustainable operation ability of the Company within 12 months since end of the reporting period.
V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, Auto spare parts, 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 28-“Other major accounting policies and 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, 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).
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4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
As a purchaser, fair value of the assets (equity of acquiree held before the date of purchasing included) for
purchasing controlling right from the actuiree, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the acuquiree 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 acquiree 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 acquiree.
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 investee so as to obtain variable return through participating in the investee’s
relevant activities and the ability to affect such return by use of the aforesaid right over the investee. Relevant
activities refers to the activities have major influence on return of the investee’s.
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(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
deconsolidated from the date that such control ceases. All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements. For subsidiaries being
disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest, less the net assets attributable to the company since the acquisition date, is recognized as the investment
income from the loss of control. Other comprehensive income relating to original equity investment in
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subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
acquiree 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.
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
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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.
The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Classification and measurement on financial assets and financial liability
In terms of investment purposes and economic natures, the Company divides its financial assets into financial
assets (with its variation of fair value reckoned into current gains/losses), financial assets available for sale,
account receivables and held-to-maturity investments, among which, transactional financial asset is measured at
fair value and movement of its fair value is recorded in current gains and losses; financial asset available for sale
is measured at fair value and movement of its fair value is recorded in owners’ equity; account receivables and
held-to-maturity investments are measured at amortized cost.
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial
liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(2) Determination of fair values for financial assets and financial liabilities
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The fair value refers to the price that will be received when selling an asset or the price to be paid to transfer a
liability in an orderly transaction between market participants on the date of measurement. Financial instruments
exist in an active market. Fair value is determined based on the quoted price in such market. An active market
refers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and price
fixing service organizations, representing the actual price of a market transaction that takes place in a fair deal.
While financial instruments do not exist in an active market, the fair value is determined using valuation
techniques. Valuation technologies include reference to be familiar with situation and prices reached in recent
market transactions entered into by both willing parties, reference to present fair values of similar other financial
instruments, cash flow discounting method and option pricing models.
As for the equity investment of the investee held by the Company, which has no controlling rights, common
control or significant influence (that is under the major influence), has no quota in an active market and the fair
value cannot be measure reasonably, than divided into financial assets available for sale and measured by cost.
(3) Recognition basis and measurement for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two
forms are listed as follows:
① Transfer of right for collecting cash flow of financial assets to another party;
② Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying
such cash flow to final collector
When that the Company has transferred almost all risks and remunerations arising from ownership of all or part
financial assets to another party, accordingly, recognition for such entire or part financial assets shall be ceased.
Gains and losses are determined by the received consideration less the carrying value of the transferred financial
assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’ equity
shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,
recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed as
financial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerations
attached to ownership of such financial assets, while control upon such financial assets still exists, recognition
shall be conducted in light of the degree of its continuous involvement in the transferred financial assets.
Accordingly, relevant liabilities shall be recognized.
(4) Recognition for termination of financial assets and liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued
recognition:
① Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
② Such financial assets have been transferred and meet discontinued recognition condition for financial assets as
regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease
recognition of such financial liability or part thereof.
(5) Impairment of financial assets
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,
as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,
impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate
impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,
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impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
great amount in single item and those which prove to be not impaired after separate test, the Company will
conduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records and
historical bad debts, so as to recognize impairment loss.
Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three
characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the
estimated future cash flow of such financial assets, and such influence could be reliably measured by the
Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
① Serious financial difficulty happens to issuer or debtor;
② Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
③ Creditor makes concession for debtors who experience financial trouble in light of consideration for economy
or laws;
④ Debtor is very likely to experience bankrupt or financial reorganization;
⑤ Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;
⑥ It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it
is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial
recognition and the decrease can be reliably measured by reference to the general valuation based on open data.
For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in
country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the
industry in which it belongs to is unpromising;
⑦ Material negative changes happen to technologies, markets, economy or law environment in which debtor
operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
⑧ Fair value of equity instrument investment experiences severe or non-temporary falling;
⑨ Other objective evidence indicating impairment happens to financial assets.
In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the
difference between carrying value and present value of estimated future cash flow discounted at effective interest
rate.
After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating
value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition
of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the
carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the
reversal date on assumption that such impairment loss had not been provided.
Impairment of available-for-sale financial assets: in the event that decline in fair value of the available-for-sale
equity instrument is regarded as “severe decline” or “non-temporary decline” on the basis of comprehensive
related factors, it indicates that there is impairment loss of the available-for-sale equity instrument. In particular,
“severe decline” refers to fair value is lower than 50% of the cost price and last for over one year.
“Non-temporary decline” refers to fair value fell for over 6-month sessions.
When the available-for-sale financial assets impair, the accumulated loss originally included in the other
comprehensive income arising from the decrease in fair value was transferred out from the capital reserve and
included in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is
the balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,
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current fair value and the impairment loss originally included in the profit or loss. After recognition of the
impairment loss, if there is objective evidence showing recovery in value of such financial assets impaired and
which is related to any event occurring after such recognition in subsequent periods, the impairment loss
originally recognized shall be reversed. The impairment loss reversal of the available-for-sale equity instrument
will be recognized as other comprehensive income, and the impairment loss reversal of the available-for-sale debt
instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured
reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled
by delivery of that equity instrument, then it will not be reversed.
11. Account Receivable
(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued for
single item
Determine basis or amount standards for single The Company’s account receivables with above RMB 1 million in single item
significant amount is defined as account receivables with significant amount in single item.
Withdrawal method for account with single In line with the difference of present value of future cash flow lower its book
significant amount and withdrawal single item bad value, carried out impairment test independently and withdrawal the bad debt
debt provision reserves
(2) Receivables with bad debt provision accrual by credit portfolio:
Combination Bad debt provision accrual
Classify to many combination based on credit portfolio for those receivables with
minor account singly and those with major amount but has no impairment been found
after testing independently; base on the actual loss ratio of the receivables of previous Age analysis method
years, with same or similar credit portfolio, and combining actual condition accrual bad
debt reserves
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
Account age Rate for receivables Rate for other receivables
Within 1 year (one year included) 10.00% 10.00%
Within 6 months
6 months to 1 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%
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In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for withdrawal single item The present value of future cash flow has major difference with the receivable group’s
bad debt provision present value of future cash flow
Withdrawal method for bad debt Carried out impairment test independently, accrual bad debt reserves according to the
provision difference of present value of future cash flow lower its book value
12. Inventories
(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
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
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basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
13. Classified as assets held for sale
The Company’s component (or non-current asset) will recognize as held-for-sale while satisfied the followed
conditions simultaneously: the component can be promptly sold at its existing status only according to the practice
terms in connection with disposal of this kind of assets; the Company has already made resolution on disposal of
such component, such as approved by shareholders in line with regulations, have already approved by general
meeting or relevant authority; the Company entered into irrevocable transfer agreement with the transferee; and
this transfer will be completed within one year.
Book value of the assets held-for-sale shall be adjusted on recoverable amounts (no more than the original book
value while qualify held-for-sale conditions), the exceed parts from original book value and recoverable amounts
after adjusted shall considered as assets impairment loss reckoned into current gains/losses. Held-for-sale fixed
assets and intangible assets would be not applicable to depreciation or amortization, and would be measured at the
lower of its carrying value less disposal cost and fair value less disposal cost.
If classified as held for sale no longer meets the recognition condition as non-current asset held for sale or
disposal group, the Company will cease such recognition and measure the asset at the lower of the following two
items:
(1) The carrying value of the asset or disposal group prior to being classified as held for sale, based on the amount
adjusted with the depreciation, amortization or impairment which should have been recognized assuming it had
not been classified as held for sale;
(2) The recoverable amount on the date when the Company decides to cease disposal.
14. 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 investee. 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
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share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital, the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For business
combination resulted in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “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 investee, 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 investee 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 investee’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 investee’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 investee, 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 investee. In respect of the other movement of net profit or loss, other comprehensive income and profit
distribution of investee, 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 investee’s net profits or losses based on the fair values
of the investee’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
investee and the Company, the financial statements of the investee shall be adjusted in conformity with the
accounting policies and accounting periods of the Company. Investment gain and other comprehensive income
shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint
ventures in which the assets disposed of or sold are not classified as operation, the share of unrealized gain or loss
arising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investment
gain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions between
the Group and an investee 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
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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 investee 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 investee 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 investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits after
setting off against the share of unrecognized losses.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note V- 6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee 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 investee) 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 investee unit acquired shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by investee 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 investee unit recognized by equity method (excluding net profit or loss, other comprehensive income and
profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
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In the event of loss of control over investee 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 investee 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 investee 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 investee, it shall be accounted for in accordance with the same accounting treatment for
direct disposal of relevant asset or liability by investee at the time when the control over investee is lost.
Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution under net asset of investee 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 investee 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 investee due to partial disposal of equity
investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition
and measurement standard of financial instruments. The difference between its fair value and carrying amount as
at the date of losing common control or significant influence shall be included in profit or loss for the current
period. In respect of other comprehensive income recognized under previous equity investment using equity
method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee 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 investee
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 20-”impairment of long-term investment”
(4) Criteria of Joint control and significant influence
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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 investee, but to fail to control or joint control the formulation of such policies together with other parties.
While recognizing whether have significant influence by investee, the potential factors of voting power as current
convertible bonds and current executable warrant of the investee held by investors and other parties shall be thank
over.
15. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Depreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to 20.-“Impairment of
long-term assets”
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a
service life excess one year and has more unit value.
(2) Depreciation methods
Categories Method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5.00% 2.71~4.75
Machinery equipment Straight-line depreciation 10 5.00% 9.50
Transportation
Straight-line depreciation 4~5 5.00% 19.00~23.75
equipment
Electronic and other
Straight-line depreciation 3～10 5.00% 9.50～31.67
equipment
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(3) Reorganization 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:
①Agreed 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;
②The 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;
③Even though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of
the lease fixed assets;
④The present value of the Company of minimum lease payment on the lease commencement date is equivalent to
90% or more of the fair value of the lease fixed assets on the lease commencement date; the present value of the
leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of the fair
value of the lease fixed assets on the lease commencement date;
⑤The 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
The impairment test method of fixed assets and the method of provision for impairment see 20-“Long term asset
impairment”.
17. Construction in process
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 20-“Impairment
of long-term assets”
18. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
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① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such
assets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets, investment real estate and inventory are
interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the
acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
19. Intangible assets
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.
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:
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Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized evenly with the shortest terms among expected useful life, benefit years regulated in the
contract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs and
current gains/losses according to the benefit object.
As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.
Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in
20-“Long-term assets impairment”.
(2) Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
① it is technically feasible that the intangible asset can be used or sold upon completion;
② there is intention to complete the intangible asset for use or sale;
③ the products produced using the intangible asset has a market or the intangible asset itself has a market;
④ there is sufficient support in terms of technology, financial resources and other resources in order to complete
the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤ the expenses attributable to the development phase of the intangible asset can be measured reliably.
If the expenses incurred during the development phase did not qualify the above mentioned conditions, such
expenses incurred are accounted for in the profit or loss for the current period. The development expenditure
reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet, and shall be transfer as intangible assets
since such item reached its expected conditions for service.
20. Impairment of long-term asset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
non-current non-financial assets such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled
entities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall
be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
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 restorable value.
21. Long-term Deferred Expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.
22. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfares occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
specified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
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.
23. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
24. Revenue
(1) Concrete judging criteria for time of recognized
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
The major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retains the
continued management right generally related to ownership, nor exercise effective control over the sold products;
the relevant economic benefits are probable to flow into the Company; the relevant income and costs can be
measured reliably.
Concrete judging criteria for time of recognized the income from goods sales:
The Company's domestic sales revenue recognition time: The company delivers goods as agreed, checks the goods
that the buyers have received and inspected during the period of the last reconciliation date and this reconciliation
date with the buyers on the reconciliation date as agreed, and transfers the risks and remunerations to the buyers
after checking, the Company issues the invoices to the buyers in accordance with the recognized varieties,
quantities and amounts and affirms the sales revenue realization on the reconciliation date.
The Company's overseas sales revenue recognition time: After checking by the customs, the Company affirms the
sales revenue realization according to the date of departure on the customs declaration.
(2) Recognition of revenue of assets using right alienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit
can flow into the Company, and the amount of revenue can be measured reliably, revenue measured by the follow:
① Interest income amount: calculated and determined in accordance with the time that others use the enterprises
cash and the actual interest rate.
② Royalty revenue amount: calculated and determined in accordance with the charging time and method of the
relevant contract or agreement as agreed.
The basis that the Company confirms the revenue from transferring the right to use assets
Rental income: the revenue realization is confirmed after collecting the rent on the date as agreed in the rental
contract (or agreement). For the rent not received on the date as agreed in the contract or agreement but can be
received, and of which the amount of revenue can be measured reliably can also be recognized as revenue.
(3) When confirming the incomes of labor services and construction contracts according to the percentage of
completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service revenue is
determined and recognized by adopting the percentage of completion method. The completion progress of service
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
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
not confirmed to render the service revenue.
25. Government Grants
(1) Determination basis and accounting for government grants related to assets
(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
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or
loss over the useful life of the asset.
(2) Determination basis and accounting for government grants related to income
(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
The government grants shall be recognized while meet the attache conditions of the grants and amount is actually
can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value.
(3) Accounting treatment
For a government grant related to income, if the grant is a compensation for related expenses or losses to be
incurred in subsequent periods, the grant shall be recognized as deferred income, and recognized in profit or loss
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over the periods in which the related costs are recognized; if the grant is a compensation for related expenses or
losses already incurred, the grant shall be recognized immediately in profit or loss for the current period.
26. Deferred 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.
27. Lease
(1) Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
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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.
28. Other major accounting policy and accounting estimates
Significant accounting judgments and estimates
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,
the Company needs to judge, estimate and assume the book value of the report items cannot be accurately
measured. These judgments, estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors, which shall impact the reported amounts of
income, expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
However, the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of
continuing operations, the changes in accounting estimates only affect the current period, of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods, of which the impacts are recognized in the current and future periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate
and assume are as follows:
(1) Provision for bad debts
According to the accounting policies of the accounts receivable, the Company adopts the allowance method to
calculate the bad debt losses. The impairment of receivables is based on the assessment to the collectability of the
accounts receivable. The impairment of accounts receivable requires the management’s judgments and estimates.
The actual results and the differences between the previously estimated results shall affect the book value of
accounts receivable and the provision or return of the receivables’ bad debt reserves during the period estimated to
be changed.
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
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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.
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 investees, including the industry conditions, technological change, credit rating, default
rates, and risks of the counterparty.
(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.
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When estimating the present value of the future cash flow, the Company needs to make significant judgments to
the output, price, and related operating expenses of the asset (or asset group) and the discount rate used for
calculating the present value. When estimating the recoverable amount, the Company shall adopt all the relevant
information can be obtained, including the prediction related to the output, price, and related operating expenses
based on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.
When estimating the present value of the future cash flow, the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group, and select the proper discount rate to determine the
present value of the future cash flows.
(7) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.
The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(8) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have some
uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs to
get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimated
amount, the difference shall have an impact on its current and deferred income taxes during the final identification
period.
(9) Early retirement benefits and supplementary retirement benefits
The expenses of the Company's early retirement benefits and supplementary retirement benefits and the amount of
liabilities are determined in accordance with various assumptions. These assumptions include the discount rate,
the average growth rate of health care costs, the subsidy growth rate of the early retired personnel and retirees and
the other factors. The differences between the actual results and assumptions will be immediately identified and
included in the costs of the current year. Although the management thought the reasonable assumptions have been
adopted, the changes in the actual experience and assumed conditions will impact the costs and liability balances
of the Company's internal early retirement benefits and supplementary retirement benefits.
29. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
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30. Other
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
17%, 6% and 5% charge rate; exportation goods are declare
VAT Taxable revenue export tax rebates on the tax refund rate regulated by the
Country or “exemption, counteraction, drawback”
Tax on 5% of the business turnover,
Operation tax 5%
and no more business tax since May
City maintaining &
Turnover tax payable 7%
construction tax
Corporation income tax Taxable income 25%、15%
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Parent company of Weifu Hi-Technology 15%
Weifu Jinning 15%
Weifu Diesel System 15%
Weifu Leader 15%
Weifu Tianli 15%
Weifu Autocam 15%
Weifu Mashan 25%
Weifu Chang’an 25%
Weifu International Trade 25%
Weifu ITM 25%
Weifu Schmidt 25%
Kunming Xitong 25%
Weifu Tianshi 25%
Weifu Leader (Wuhan) 25%
2. Tax preference
On 2 September 2014, 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.: GR201432001331. Corporate income tax of the
Company shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 2 September 2014, 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.: GR201432001794. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
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On 31 October 2014, Weifu Diesel System 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.: GR201432002594. Corporate income tax of the
Weifu Diesel System shall be taxed by 15% in three years since 1 January 2014 in accordance with State
regulations.
On 2 September 2014, 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.: GR201432001480. Corporate income tax of the
Weifu Leader shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 25 September 2014, 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.: GR201433100224. Corporate income tax of the Weifu Tianli
shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 31 October 2014, 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.: GF201432001254. Corporate income tax of the
Weifu Autocam shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
3. Other
Nil
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Cash on hand 599,430.35 593,508.90
Cash in bank 1,176,906,292.97 3,216,383,596.65
Other monetary fund 46,891,693.28 57,702,626.99
Total 1,224,397,416.60 3,274,679,732.54
Other explanation
Item 2016-06-30 2015-12-31
Bank acceptance bill, L/C and other collateral 46,891,693.28 57,702,626.99
2. Note receivables
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 954,672,667.47 941,836,230.18
Commercial acceptance bill 61,915,982.96 90,050,000.00
Total 1,016,588,650.43 1,031,886,230.18
(2) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Bank acceptance bill 22,324,948.91
Total 22,324,948.91
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 491,581,496.02
Total 491,581,496.02
3. Accounts receivable
(1) Accounts receivable by category:
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Closing balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Types Book
Accru Accru Book value
Amount Ratio Amount value Amount Ratio Amount
al ratio al ratio
Account
receivable with
single significant
2,336,848.9 100.00 2,336,848 100.00
amount and 2,336,848.93 0.13% 0.18% 2,336,848.93
3 % .93 %
withdrawal bad
debt provision
separately
Receivables with
bad debt provision 1,753,779,687 99.70 15,172,219. 1,738,607 1,276,903 99.44 15,739,942.3 1,261,163,18
0.87% 1.23%
accrual by credit .00 % 17 ,467.83 ,127.17 % 0 4.87
portfolio
Accounts with
single minor
amount but with 2,971,107.8 100.00 4,823,109 100.00
2,971,107.87 0.17% 0.38% 4,823,109.15
bad debts 7 % .15 %
provision accrued
individually
1,759,087,643 100.00 20,480,175. 1,738,607 1,284,063 100.00 22,899,900.3 1,261,163,18
Total 1.16% 1.78%
.80 % 97 ,467.83 ,085.25 % 8 4.87
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
√ Applicable □ Not applicable
In RMB
Closing balance
Account receivable (by units)
Account receivable Bad debt reserve Accrual ratio Reasons
Changzhou Liankai Power The account was too
2,336,848.93 2,336,848.93 100.00%
Machinery Co., Ltd. old to collect
Total 2,336,848.93 2,336,848.93 -- --
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Sub item of within one year
Within 6 months 1,662,763,766.40
6 months to 1 year 68,364,155.00 6,836,415.51 10.00%
Subtotal of within 1 year 1,731,127,921.40 6,836,415.51
1-2 years 15,142,318.25 3,028,463.65 20.00%
2-3 years 3,670,178.89 1,468,071.55 40.00%
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Over 3 years 3,839,268.46 3,839,268.46 100.00%
Total 1,753,779,687.00 15,172,219.17 0.87%
Explanation on combination determines:
Excluding the account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition.
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 729,144.11 Yuan; the amount collected or switches back amounting to
3,106,962.88 Yuan.
Important bad debt provision collected or switch back:
In RMB
Company Collected or switch back amount Collection way
Hubei Yuchai Engine Co., Ltd. 214,814.85 Monetary Fund
Anhui Quanchai Power Co., Ltd. 797,654.23 Bank acceptance bill
Total 1,012,469.08 --
The amount with bad debt provision accrual seperattely at period-end of last year was collected by cash of RMB
1,012,469.08 in the Period, rests of the amount are collected on the bae debt provision calculated based on age
account; bad debt provision verified in the Period amounting to RMB 41,905.64
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Sporadic households 41,905.64
Written-off for the major receivable: Nil
Note of written-off for account receivable: Nil
(4) Top 5 receivables at ending balance by arrears party
Total year-end balance of top five receivables by arrears party amounting to 689,230,917.56 Yuan, takes 39.18
percent of the total account receivable at year-end, bad debt provision accrual correspondingly at year-end
amounting as 785,840.21 Yuan.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
90
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
4. Advance payment
(1) Advance payment by age
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within one year 65,051,955.31 83.99% 56,430,230.21 76.96%
1-2 years 7,453,279.05 9.62% 16,547,115.99 22.56%
2-3 years 4,782,248.57 6.17% 231,840.37 0.32%
Over 3 years 173,810.54 0.22% 117,363.62 0.16%
Total 77,461,293.47 -- 73,326,550.19 --
Explanation on reasons of failure to settle on important advance payment with age over one year: Nil
(2) Top 5 advance payment at ending balance by prepayment object
Total year-end balance of top five advance payment by prepayment object amounting to 28,220,256.13 Yuan,
takes 36.43 percent of the total advance payment at year-end
5. Interest receivable
Category
In RMB
Item Closing balance Opening balance
Time deposit 2,249,341.69 3,281,939.96
Total 2,249,341.69 3,281,939.96
6. Dividend receivables
Dividend receivables
In RMB
Item (or the invested entity) Closing balance Opening balance
Bosch Automobile Diesel System Co., Ltd 198,772,367.40
Zhonglian Automobile Electronic Co., Ltd. 162,800,000.00
Wuxi Weifu Fine Machinery Manufacturing Co., Ltd. 3,600,000.00
Total 361,572,367.40 3,600,000.00
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Accrual Book value Accrual Book value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Other account
receivable with 4,298,826.4 21.76 4,298,826.4 100.00 4,298,826. 26.26 100.00
4,298,826.47
single significant 7 % 7 % 47 % %
amount and
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
withdrawal bad
debt provision
separately
Other receivables
with bad debt 15,459,891. 78.24 3,181,491.4 12,278,400 12,071,334 73.74 8,817,661.0
20.58% 3,253,673.77 26.95%
provision accrual 66 % 7 .19 .85 % 8
by credit portfolio
19,758,718. 100.00 7,480,317.9 12,278,400 16,370,161 100.0 8,817,661.0
Total 37.86% 7,552,500.24 46.14%
13 % 4 .19 .32 0% 8
7. Other accounts receivable
(1) Other accounts receivable by category
In RMB
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Other account Closing balance
receivable(units) Account receivable Bad debt reserve Accrual ratio Reasons
The account was too old
American HESS 1,514,671.20 1,514,671.20 100.00%
to collect
Nanjing Jinning The account was too old
2,784,155.27 2,784,155.27 100.00%
Machinery Factory to collect
Total 4,298,826.47 4,298,826.47 -- --
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Sub item of within one year
Within 6 months 11,870,117.59
6 months to one year 179,428.67 17,942.87 10.00%
Subtotal within one year 12,049,546.26 17,942.87
1-2 years 172,906.72 34,581.34 20.00%
2-3 years 180,785.71 72,314.29 40.00%
Over 3 years 3,056,652.97 3,056,652.97 100.00%
Total 15,459,891.66 3,181,491.47 20.58%
Explanations on combination determine:
Excluding the other account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition.
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 22,150.11 Yuan; the amount collected or switches back amounting to 82,939.41
Yuan.
The major switch back or collected of the bad debt provision in the Period: nil
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount of write off
Sporadic households 11,393.00
Note of important other receivables of written-off: Nil
Note of other receivables of written-off:
The current reserved amount of written-off was RMB 11,393.00. The current written-off other receivables are
sporadic households, every detail has small amount and is not generated by non-related transaction.
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 12,323,417.45 9,197,205.52
Staff loans and petty cash 3,933,444.65 2,599,095.24
Other 3,501,856.03 4,573,860.56
Total 19,758,718.13 16,370,161.32
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending Ending balance of
Company Nature Age balance of other
balance bad bet provision
receivables
Intercourse Specific
Nanjing Jinning Machinery Factory 2,784,155.27 14.09% 2,784,155.27
funds of unit identification
Intercourse Within 6
Autocam (China) Auto Parts Co., Ltd. 1,436,349.89 7.27%
funds of unit months
Ningbo Jiangbei High-Tech Industry Park Performance
1,767,000.00 Over 3 years 8.94% 1,767,000.00
Development Construction Co., Ltd. bond
Advance
Specific
Paid in advance –American HESS payment 1,514,671.20 7.67% 1,514,671.20
identification
transfer-in
Nanjing Zhongran City Gas Development Intercourse 575,640.00 Over 3 years 2.91% 575,640.00
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Co., Ltd. funds of unit
Total -- 8,077,816.36 -- 40.88% 6,641,466.47
(6) Account receivables related to government subsidies
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
8. Inventory
(1) Inventory classification:
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 339,625,753.18 89,832,794.15 249,792,959.03 325,517,991.00 89,620,741.76 235,897,249.24
Goods in process 136,883,674.35 24,362,621.24 112,521,053.11 119,036,696.10 25,216,063.29 93,820,632.81
Finished goods 688,677,615.99 143,710,885.55 544,966,730.44 682,835,380.61 146,978,470.25 535,856,910.36
Total 1,165,187,043.52 257,906,300.94 907,280,742.58 1,127,390,067.71 261,815,275.30 865,574,792.41
(2) Inventory depreciation reserve
In RMB
Increase in the current period Decrease in the current period Closing
Item Opening balance
Accrual Other Switch back or write-off Other balance
Raw materials 89,620,741.76 390,100.00 4,299,074.36 89,832,794.15
Goods in process 25,216,063.29 24,362,621.24
Finished goods 146,978,470.25 143,710,885.55
Total 261,815,275.30 390,100.00 4,299,074.36 257,906,300.94
①Net realizable value of the inventory refers to: during the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed sales price estimated and relevant
taxes.
②accrual basis for inventory depreciation reserve:
Accrual basis for inventory impairment Specific basis for recognization
Item
provision
The materials sold due to finished Results from the estimated sale price of such inventory less the cost
Materials on hand goods manufactured, its net realizable what will happen, estimated sales expenses and relevant taxes till the
value is lower than the book value goods completed
The goods in process sold due to Results from the estimated sale price of such inventory less the cost
Goods in process finished goods manufactured, its net what will happen, estimated sales expenses and relevant taxes till the
realizable value is lower than the book goods completed
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
value
its net realizable value is lower than the Results from the estimated sale price less the vary taxes which shall
Finished goods
book value be taken in process of sales
③Reasons of write-off for inventory falling price reserves:
Item Reasons of write-off
Materials on hand Used for production and the finished goods are realized sales
④Reasons of switch-back for inventory falling price reserves:
Item Reasons of write-off
The market price for the materials for selling soaring in the Peirod, thus switch-back in the inventory falling
Raw materials
price reserves which was accrual
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
9. Other current assets
In RMB
Item Closing balance Opening balance
Entrust financing products 4,560,900,000.00 1,945,000,000.00
Receivable export tax rebates 10,875,394.56 7,680,043.89
Prepaid taxes and VAT retained 40,464,566.66 62,956,607.99
Other 133,481.24 567,997.40
Total 4,612,373,442.46 2,016,204,649.28
10. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Instrument equity available
625,701,067.95 49,433,106.95 576,267,961.00 718,831,767.95 49,433,106.95 669,398,661.00
for sale:
Measured by fair value 362,880,200.00 362,880,200.00 456,010,900.00 456,010,900.00
Measured by cost 262,820,867.95 49,433,106.95 213,387,761.00 262,820,867.95 49,433,106.95 213,387,761.00
Other -- financial products 120,000,000.00 120,000,000.00 25,000,000.00 25,000,000.00
Total 745,701,067.95 49,433,106.95 696,267,961.00 743,831,767.95 49,433,106.95 694,398,661.00
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument liability
Type Total
available for sale available for sale
Cost /liability of equity instrument/ amortization
207,316,925.00 207,316,925.00
cost of debt instrument
Fair value 362,880,200.00 362,880,200.00
Amount of fair value changes that accumulatively
155,563,275.00 155,563,275.00
reckoned in other comprehensive gains
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves
Ratio of
In share-hol
De De Cash
The invested entity Incr cr ding in
Period-beginni cre Period-beginnin cre dividend
ease Period-end ea Period-end invested
ng ase g ase
d se entity
d d
d
Guolian Securities 12,000,000.00 12,000,000.00 0.95%
Guangxi Liufa Co.,
1,600,000.00 1,600,000.00 1,600,000.00 1,600,000.00 1.22%
Ltd.
Financial Company of
Changchai Group Co., 800,000.00 800,000.00 800,000.00 800,000.00
Ltd.
H&J Vanguard
33,000,000.00 33,000,000.00 33,000,000.00 33,000,000.00 11.72%
Investment Co., Ltd.
Nanjing Hengtai
Insurance and Broker 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1.85%
Co., Ltd.
Henan Gushi Weining
Oil Pump & Nozzle 2,033,106.95 2,033,106.95 2,033,106.95 2,033,106.95
Co., Ltd.
Beijing Foton
Environmental Engine 86,940,000.00 86,940,000.00 11,000,000.00 11,000,000.00 13.04%
Co., Ltd.
Wuxi Xidong
Technological Industry 5,000,000.00 5,000,000.00 1.43%
Park Co., Ltd.
Shanghai IMS
Automotive Electronic 10,000,000.00 10,000,000.00 18.52%
System Co., Ltd.
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Shanghai CD
Dengtong Equity 110,447,761.00 110,447,761.00 14.93% 1,584,389.13
Investment Fund
Total 262,820,867.95 262,820,867.95 49,433,106.95 49,433,106.95 -- 1,584,389.13
(4) Changes of impairment in Period
In RMB
Instrument equity available Instrument liability
Type Total
for sale available for sale
Balance of impairment accrual at period-begin 49,433,106.95 49,433,106.95
Balance of impairment accrual at period-end 49,433,106.95 49,433,106.95
11. Long-term equity investment
In RMB
+,-
Endin
Ad Other g
diti compr balan
Cap Other Imp
The invested ona ehensi ce of
Opening balance l ital Investment gains equit Cash dividend or airm Ot Closing balance
entity ve impai
red recognized under y profit announced ent he
inv incom rment
ucti equity chan to issued accr r
est e provi
on ge ual
me adjust sion
nt ment
I. Joint venture
Wuxi Weifu
Environment
386,651,564.62 33,712,839.90 420,364,404.52
Catalyst Co.,
Ltd.
Subtotal 386,651,564.62 33,712,839.90 420,364,404.52
II. Associated enterprise
Bosch
Automobile
2,208,904,933.15 378,856,281.65 824,197,176.96 1,763,564,037.84
Diesel System
Co., Ltd
Zhonglian
Automobile
645,256,986.76 172,517,518.64 162,800,000.00 654,974,505.40
Electronic
Co., Ltd.
Wuxi Weifu
Fine
Machinery 42,770,760.90 2,732,299.16 45,503,060.06
Manufacturin
g Co., Ltd.
Subtotal 2,896,932,680.81 554,106,099.45 986,997,176.96 2,464,041,603.30
Total 3,283,584,245.43 587,818,939.35 986,997,176.96 2,884,406,007.82
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
12. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
House and Construction in
Item Land use right Total
building process
I. original book value
1.Opening balance 52,016,403.92 52,016,403.92
2. increased in the Period
(1) outsourcing
(2) Inventory\fixed assets\construction in
process transfer-in
(3) increased by combination
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 52,016,403.92 52,016,403.92
II. Accumulated depreciation and accumulated
amortization
1.Opening balance 31,783,291.99 31,783,291.99
2. increased in the Period 499,515.20 499,515.20
(1) accrual or amortization 499,515.20 499,515.20
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 32,282,807.19 32,282,807.19
III. Depreciation reserves
1.Opening balance
2. increased in the Period
(1) accrual
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance
IV. Book value
1. Ending Book value 19,733,596.73 19,733,596.73
2. Opening Book value 20,233,111.93 20,233,111.93
(2) Investment real estate measured by fair value
□ Applicable√ Not applicable
13. Fixed assets
(1) Fixed assets
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Machinery Transportation Electronic and
Item Housing buildings Total
equipment equipment other equipment
I. original book value
1.Opening balance 1,166,008,245.52 2,045,403,928.82 41,794,639.87 321,849,640.66 3,575,056,454.87
2. increased in the Period 6,082,340.57 92,697,702.90 1,494,428.28 38,509,401.21 138,783,872.96
(1) Purchase 961,141.00 11,664,354.96 637,868.41 2,615,985.64 15,879,350.01
(2) construction in process
5,121,199.57 81,033,347.94 856,559.87 35,893,415.57 122,904,522.95
transfer-in
(3) increased by combination
3. decreased in the Period 18,998,904.43 1,175,475.78 1,464,744.33 21,639,124.54
(1) disposal or scrapping 18,998,904.43 1,175,475.78 1,464,744.33 21,639,124.54
4.Closing balance 1,172,090,586.09 2,119,102,727.29 42,113,592.37 358,894,297.54 3,692,201,203.29
II. Accumulated depreciation
1.Opening balance 201,364,995.47 847,112,998.87 27,807,934.31 130,153,209.50 1,206,439,138.15
2. increased in the Period 11,385,742.46 76,920,481.91 1,964,425.06 19,763,000.87 110,033,650.30
(1) accrual 11,385,742.46 76,920,481.91 1,964,425.06 19,763,000.87 110,033,650.30
3. decreased in the Period 11,874,129.35 1,272,520.35 1,374,102.91 14,520,752.61
(1) disposal or scrapping 11,874,129.35 1,272,520.35 1,374,102.91 14,520,752.61
4.Closing balance 212,750,737.93 912,159,351.43 28,499,839.02 148,542,107.46 1,301,952,035.84
III. Depreciation reserves
1.Opening balance 42,202,894.99 125,725.40 5,661,372.91 47,989,993.30
2. increased in the Period
(1) accrual
3. decreased in the Period 492,027.39 492,027.39
(1) disposal or scrapping 492,027.39 492,027.39
4.Closing balance 41,710,867.60 125,725.40 5,661,372.91 47,497,965.91
IV. Book value
1. Ending Book value 959,339,848.16 1,165,232,508.26 13,488,027.95 204,690,817.17 2,342,751,201.54
2. Opening Book value 964,643,250.05 1,156,088,034.96 13,860,980.16 186,035,058.25 2,320,627,323.42
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by financing lease
Nil
(4) Fixed assets acquired by operating lease
Nil
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
Boiler room and guard house of Weifu Jinning 3,224,528.98 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 41,686,036.45 Still in process of relevant property procedures
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
14. Construction in progress
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Construction project in
1,154,438.50 1,154,438.50 39,836,288.30 39,836,288.30
industrial zone
Industrialization of tail
38,133,217.73 38,133,217.73 38,133,217.73 38,133,217.73
treatment system
Ningbo Tianli new plant
103,500.00 103,500.00
project
Parent company technical
transformation equipment 24,140,826.44 24,140,826.44 13,917,647.99 13,917,647.99
engineering
Weifu Autocam equipment
16,140,783.57 16,140,783.57 27,155,936.80 27,155,936.80
engineering
ITM 102 warehouse 25,265,393.76 25,265,393.76 16,101,158.89 16,101,158.89
Sporadic engineering project 53,438,658.56 2,310,872.53 51,127,786.03 29,569,375.50 2,310,872.53 27,258,502.97
Total 158,376,818.56 2,310,872.53 156,065,946.03 164,713,625.21 2,310,872.53 162,402,752.68
(2) Changes of major projects under construction
In RMB
Accumul including
Proporti
Fixed Other ated : interest Interest
on of
increased assets decrea amount capitaliz capitaliz
Opening Closing project Sourceof
Item Budget in the transfer-in sed in Progress of ed ation rate
balance balance investme funds
Period in the the interest amount of the
nt in
Period Period capitaliz of the year
budget
ation year
Construc Placeme
tion nt
project 650,000, 39,836,2 6,595,65 45,277,505 1,154,43 amount
100.00% 100.00%
in 000.00 88.30 5.91 .71 8.50 and
industria owned
l zone funds
Industria Placeme
lization nt
340,000, 38,133,2 38,133,2
of tail 100.00% 100.00% amount
000.00 17.73 17.73
treatmen and
t system owned
100
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
funds
Ningbo
Tianli
116,000, 5,818,73 5,715,239. 103,500. 4,165,00
new 100.00% 100.00% 4.98% Other
000.00 9.59 59 00 0.39
plant
project
Parent
company
technical
transfor
13,917,6 20,238,6 10,015,437 24,140,8
mation Other
47.99 15.97 .52 26.44
equipme
nt
engineeri
ng
Weifu
Autocam
equipme 27,155,9 15,717,0 26,732,193 16,140,7
Other
nt 36.80 40.71 .94 83.57
engineeri
ng
ITM 102
16,101,1 9,164,23 25,265,3
warehou Other
58.89 4.87 93.76
se
1,106,00 135,144, 57,534,2 87,740,376 104,938, 4,165,00
Total -- -- --
0,000.00 249.71 87.05 .76 160.00 0.39
(3) The provision for impairment of construction projects
Nil
15. Intangible assets
Particular about intangible assets
In RMB
Non-patent Trademark and Computer
Item Land use right Patent Total
technology trademark license software
I. original book value
1.Opening balance 376,128,220.00 3,539,793.05 41,597,126.47 39,371,607.18 460,636,746.70
2. increased in the Period 3,532,825.94 3,532,825.94
(1) purchase 3,532,825.94 3,532,825.94
(2) internal R&D
(3) increased by combination
3. decreased in the Period
(1) disposal
4.Closing balance 376,128,220.00 3,539,793.05 41,597,126.47 42,904,433.12 464,169,572.64
II. accumulated amortization
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
1.Opening balance 53,558,503.42 1,563,408.84 9,709,000.00 18,548,097.02 83,379,009.28
2. increased in the Period 4,131,131.70 176,989.91 4,904,932.90 9,213,054.51
(1) Accrual 4,131,131.70 176,989.91 4,904,932.90 9,213,054.51
3. decreased in the Period
(1) disposal
4.Closing balance 57,689,635.12 1,740,398.75 9,709,000.00 23,453,029.92 92,592,063.79
III. impairment provision
1.Opening balance 16,646,900.00 16,646,900.00
2. increased in the Period
(1) Accrual
3. decreased in the Period
(1) disposal
4.Closing balance 16,646,900.00 16,646,900.00
IV. Book value
1. Ending Book value 318,438,584.88 1,799,394.30 15,241,226.47 19,451,403.20 354,930,608.85
2. Opening Book value 322,569,716.58 1,976,384.21 15,241,226.47 20,823,510.16 360,610,837.42
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0.
16. Goodwill
(1) Original book value of goodwill
In RMB
Decreased during the
The invested entity or items Opening balance Increase during the year Closing balance
year
Weifu Tianli 1,784,086.79 1,784,086.79
Total 1,784,086.79 1,784,086.79
17. Long-term unamortized expenses
In RMB
increased in the Amortized in the
Item Opening balance Other decrease Closing balance
Period Period
Remodeling costs ect. 14,004,911.64 4,583,214.23 4,364,011.79 14,224,114.08
Total 14,004,911.64 4,583,214.23 4,364,011.79 14,224,114.08
18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Bad debt reserves 26,963,146.02 4,328,639.75 29,076,648.82 4,639,609.68
Inventory falling price
233,355,657.43 36,195,007.52 231,625,094.65 35,744,562.09
reserves
102
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Fixed assets depreciation
47,497,965.91 7,221,737.74 47,987,199.75 7,301,021.41
reserves
Construction in process
2,310,872.53 346,630.88 2,310,872.53 346,630.88
depreciation reserves
Intangible assets
16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
depreciation reserves
Deferred income 409,576,819.24 61,436,522.88 395,610,989.00 59,341,648.35
Internal un-realized
34,003,102.01 5,441,607.75 32,612,928.06 5,292,769.12
profit
Payable salary, accrued
254,596,648.30 40,085,345.92 258,374,925.93 41,308,845.53
expenses ect.
Depreciation assets,
1,481,298.44 222,194.77 1,481,298.44 222,194.77
amortization difference
Deductible loss of
12,578,744.96 2,258,296.80 12,052,823.20 2,179,408.54
subsidiary
Total 1,039,011,154.84 160,033,019.01 1,027,779,680.38 158,873,725.37
(2) Deferred income tax liabilities un-offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation increment for
14,602,179.37 2,190,326.90 14,972,289.38 2,245,843.40
combination not under the same control
Change of fair value for the financial
155,563,275.00 23,334,491.24 221,689,850.00 33,253,477.50
assets available for sale
Total 170,165,454.37 25,524,818.14 236,662,139.38 35,499,320.90
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
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 assets 160,033,019.01 158,873,725.37
Deferred income tax liabilities 25,524,818.14 35,499,320.90
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences - Bad debt reserves 997,347.89 1,375,751.80
Deductible temporary differences- Inventroy falling price reserves 24,550,643.51 30,190,180.65
Deductible losses –subsidiary of Weifu ITM ect. 193,873,339.02 188,909,719.27
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Deductible temporary differences- Fixed assets depreciation reserves 2,793.55
Deductible temporary differences- Provision for impairment of financial assets
49,433,106.95 49,433,106.95
available for sale
Total 268,854,437.37 269,911,552.22
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2016 3,044,019.10 3,044,019.10 Weifu ITM and other subsidiaries have operating losses
2017 12,490,509.17 12,490,509.17 Weifu ITM and other subsidiaries have operating losses
2018 24,828,326.76 24,828,326.76 Weifu ITM and other subsidiaries have operating losses
2019 35,159,237.40 35,159,237.40 Weifu ITM and other subsidiaries have operating losses
2020 96,981,861.11 113,387,626.84 Weifu ITM and other subsidiaries have operating losses
2021 21,369,385.48 Weifu ITM and other subsidiaries have operating losses
Total 193,873,339.02 188,909,719.27 --
19. Other non-current assets
In RMB
Item Closing balance Opening balance
Engineering equipment paid in advance 113,614,653.09 149,038,672.85
Total 113,614,653.09 149,038,672.85
20. Short-term loans
(1)Types of short-term loans
In RMB
Item Closing balance Opening balance
Credit loan 263,000,000.00 313,000,000.00
Bill financing 47,000,000.00
Total 263,000,000.00 360,000,000.00
21. Notes payable
In RMB
Type Closing balance Opening balance
Bank acceptance bill 624,360,290.69 630,682,394.24
Total 624,360,290.69 630,682,394.24
Notes expired at year-end without paid was 0.00 Yuan.
22. Account payable
Account payable
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Item Closing balance Opening balance
Within 1 year 1,596,206,805.11 1,090,199,533.46
1-2 years 14,040,785.67 304,679,526.94
2-3 years 25,035,613.61 21,424,218.43
Over 3 years 53,632,396.67 47,304,660.12
Total 1,688,915,601.06 1,463,607,938.95
23. Account received in advance
Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 34,063,460.62 28,529,286.23
1-2 years 2,183,692.11 2,814,487.48
2-3 years 595,486.11 550,277.52
Over 3 years 1,529,932.01 1,651,312.26
Total 38,372,570.85 33,545,363.49
24. Wages payable
(1) Wages payable
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
I. Short-term compensation 146,377,806.84 364,048,864.33 421,519,664.22 88,907,006.95
II. Post-employment welfare- defined
38,562,720.22 56,269,702.25 66,715,206.21 28,117,216.26
contribution plans
IV. Other welfare due within one year 60,130,414.01 170,209.00 4,065,136.33 56,235,486.68
Including: other short-term
welfare-Housing subsidies, employee 18,062,557.08 170,209.00 397,124.50 17,835,641.58
benefits and welfare funds
Total 245,070,941.07 420,488,775.58 492,300,006.76 173,259,709.89
(2) Short-term compensation
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
1. Wages , bonuses, allowances and
113,737,692.95 288,233,523.23 340,568,278.29 61,402,937.89
subsidies
2. Welfare for workers and staff 0.00 26,343,987.26 26,343,987.26 0.00
3. Social insurance 9,946,618.76 23,257,530.37 25,536,605.77 7,667,543.36
Including: Medical insurance 7,918,398.09 19,130,249.32 21,120,796.10 5,927,851.31
Work injury insurance 1,326,796.24 2,973,625.96 3,162,728.09 1,137,694.11
Maternity insurance 701,424.43 1,153,655.09 1,253,081.58 601,997.94
4. Housing accumulation fund 10,264,677.90 21,939,819.50 24,365,161.40 7,839,336.00
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
5. Labor union expenditure and
12,428,817.23 4,274,003.97 4,705,631.50 11,997,189.70
personnel education expense
Total 146,377,806.84 364,048,864.33 421,519,664.22 88,907,006.95
(3) Defined contribution plans
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
1. Basic endowment insurance 23,001,931.95 45,442,300.51 49,951,380.22 18,492,852.24
2. Unemployment insurance 2,267,357.94 3,202,293.10 3,503,323.76 1,966,327.28
3. Enterprise annuity 13,293,430.33 7,625,108.64 13,260,502.23 7,658,036.74
Total 38,562,720.22 56,269,702.25 66,715,206.21 28,117,216.26
Other explanation:
The Company participates in the pension insurance and unemployment insurance plans established by government
authorities by laws. Under these plans, the Company makes monthly contribution to these plans based on 14% and
2% of the social insurance contribution base for 2015 respectively. Other than the aforesaid monthly contribution,
the Company takes no further payment obligation. The relevant expenditure is included in current profit or loss or
cost of relevant assets when occurs. Found more of enterprise annuity in Note XV –other important event-4.”
Annuity plan”
25. Tax payable
In RMB
Item Closing balance Opening balance
Value-added tax 20,248,389.25 21,584,605.67
Business tax 22,731.23
Enterprise income tax 27,438,638.54 21,811,569.29
Individual income tax 674,663.85 2,049,100.89
Urban maintenance and construction tax 1,410,372.32 1,511,975.13
Educational surtax 1,007,408.82 1,081,008.96
Other (including stamp tax and local funds) 3,833,879.24 4,328,874.16
Total 54,613,352.02 52,389,865.33
26. Interest payable
In RMB
Item Closing balance Opening balance
Long-term borrowing interest for installment 1,585,300.00 91,300.00
Interest payable for short-term loans 2,055,652.21 687,373.59
Total 3,640,952.21 778,673.59
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27. Dividend payable
In RMB
Item Closing balance Opening balance
Common stock dividends 504,475,285.00
Total 504,475,285.00
Other explaination, including major payable dividend without payment over one year, disclose the reasons: nil
28. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Closing balance Opening balance
Margin 7,101,063.50 9,179,884.32
Social insurance and reserves funds that withholding 9,283,314.86 4,510,304.28
Intercourse funds of units 30,216,892.75 25,911,757.81
Other 8,290,193.21 9,731,879.85
Total 54,891,464.32 49,333,826.26
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Total 4,500,000.00 --
29. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term loans due within one year 60,000,000.00 60,000,000.00
Total 60,000,000.00 60,000,000.00
30. Long-term account payable
(1) Listed by nature
In RMB
Item Closing balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau [note 1] financial supporting capital (2005) 1,140,000.00 1,140,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 2] financial supporting capital (2006) 1,250,000.00 1,250,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 3] financial supporting capital (2007) 1,230,000.00 1,230,000.00
Loan transferred from treasury bond [note 4] 2,034,545.00 2,034,545.00
Hi-tech Branch of Nanjing Finance Bureau[note 5] financial supporting capital (2008) 2,750,000.00 2,750,000.00
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Hi-tech Branch of Nanjing Finance Bureau[note 6] financial supporting capital (2009) 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 7] financial supporting capital (2010) 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 8] financial supporting capital (2011) 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 9] financial supporting capital (2013) 2,740,000.00 2,740,000.00
Total 18,174,545.00 18,174,545.00
Other explanation:
[Note 1] 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.
[Note 2] 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.
[Note 3] 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.
[Note 4] 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.
[Note 5] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note 6] 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.
[Note 7] 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.
[Note 8] 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.
[Note 9] 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.
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31. Long-term employee payable
(1) Long-term employee payable
In RMB
Item Closing balance Opening balance
III. Other long-term welfare 96,350,000.00 96,350,000.00
Total 96,350,000.00 96,350,000.00
32. Special payable
In RMB
Increase during Decreased
Item Opening balance Closing balance Causes
the year during the year
Removal compensation of the company [note1] 26,459,966.58 25,301,600.00 20,619,625.41 31,141,941.17
Removal compensation of subsidiary Weifu Jinning
18,265,082.11 18,265,082.11
[note 2]
Total 44,725,048.69 25,301,600.00 20,619,625.41 49,407,023.28 --
Othe note:
Explanation of removal compensation of the company and removal compensation of subsidiary Weifu Jinning:
[Note 1] According to the “State-owned land use right of Wuxi City purchase contract” signed between parent
company and Wuxi Land Reserve Center, the two parties come to an agreement with the property attributable to
parent company, located in No.107, Renmin West Road, Wuxi City and No.125, Yunhe East Road, Wuxi City, as
well as the equipment unable to move, that is the company received RMB 503.8116 million for removal
compensation. RMB 7,900,000.00 was received in 2013 as relocation compensation, and RMB 509,264.71
occurred in removals was reconked into non-operation revenue. Relocation compensation RMB 145,230,000.00
received in 2014 and RMB 152,620,735.29 occurred in removals was recmoned into non-operation revenue in the
Period; The company has received relocation compensation of 325,380,000.00 Yuan in 2015, the removal charge
of 68,526,638.09 Yuan compensated in the current period and the removal charge of 21,192,981.57 Yuan that
occurred in 2014 but has not yet been compensated were included in the current non-operating income, new
capital expenditure of 209,200,413.76 Yuan for compensation is included in the deferred income; The company
has received relocation compensation of 25,301,600.00 Yuan in 2016, the removal charge of 57,116.41 Yuan
compensated in the current period, new capital expenditure of 20,562,509.00 Yuan for compensation is included
in the deferred income, and the surplus is 31,141,941.17 Yuan.
[Note 2]Removal compensation of subsidiary Weifu Jinning: 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 2013 and is making up for the losses from lessee,
and the above lands and property have not been collected up to 30 June 2016.
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
33. Deferred income
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance Causes
year year
Fiscal appropriation
Government grand 400,657,991.06 26,610,976.00 13,366,146.06 413,902,821.00
received
Total 400,657,991.06 26,610,976.00 13,366,146.06 413,902,821.00 --
Item with government grants involved:
In RMB
Amount
Other Assets
New grants in reckoned in
Liabilities Opening balance change Closing balance related/Income
the Period non-operation
s related
revenue
Appropriation on industrialization
project of electrical control and Income related
5,047,002.06 721,000.30 4,326,001.76
high voltage jet VE system of low /Assets related
emissions diesel
R&D subsidy for new products 2,244,225.03 2,244,225.03 Income related
Appropriation on reforming of
production line technology and
R&D ability of common rail 7,100,000.00 7,100,000.00 Assets related
system for diesel by distributive
high-voltage
Fund of industry upgrade (2012) 60,400,000.00 60,400,000.00 Income related
Fund of industry upgrade (2013) 60,520,000.00 60,520,000.00 Income related
Appropriation on central basic
4,285,714.29 4,285,714.29 Assets related
construction investment
R&D and industrialization of the
high pressure variable pump of
11,500,000.00 11,500,000.00 Assets related
the common rail system of diesel
engine for automobile
Research institute of motor
vehicle exhaust aftertreatment 4,000,000.00 4,000,000.00 Assets related
technology
Fund of industry upgrade (2014) 36,831,000.00 36,831,000.00 Income related
New-built assets compensation
after the removal of parent 192,332,032.79 20,562,509.00 12,645,145.76 200,249,396.03 Assets related
company
Wuxi business development funds
supporting foreign trade
2,000,000.00 2,000,000.00 Assets related
transformation and upgrading
project (2015)
Wuxi technical research and 2,000,000.00 2,000,000.00 Assets related
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
development institution funds
(2015)
Income related
Other 12,398,016.89 6,048,467.00 18,446,483.89
/Assets related
Total 400,657,991.06 26,610,976.00 13,366,146.06 413,902,821.00 --
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) R&D subsidy for new products: in 2011, the subsidy for R&D of new products are received from Wuxi New
Financial Bureau by the parent company for year of 2012 to 2013, grants amounting to RMB 48.5 million, and
with income concerned. The Company transfer-in non-operation revenue of RMB7,420,891.69 in 2012 while
RMB 3,410,293.07 in 2013, and RMB37,668,815.24 remains. On 20 December 2013, the Company applied for
orderly utilization in 2014 and later years in aspect of the un-used parts, mainly use for Euro IV and above R&D
for the diesel system in later years, as well as the R&D items of engine electrical components, NRM, kernel
components and process optimization. And the application was approved by Enterprise Service Bureau of Wuxi
New District in 2013. Expenses for new product’s R&D amounting to RMB 24,944,729.99 in 2015, and RMB
24,944,729.99 transfer-in non-operational revenue in the Period.
(3) 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 useful life of the underlying
assets when the project is completed.
(4) 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.
(5) 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.
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(6) Appropriation for investment of capital construction from the central government: In accordance with the
document Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment of
capital construction from the central government in 2012. The project has passed the acceptance check in current
period, this appropriation should be amortized within the surplus service life of current assets, and amortization
amount of 2015 was 714,285.71 Yuan.
(7) 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 and Xi Cai
Gong Mao [2013] No.138. In2014, RMB 3 million received. In the period, RMB 0.45 million received. And
belongs to government grands with assets concerned, and shall be amortized in the use of period for assets after
project completed. Project terms from September 2013 to August 2016.
(8) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader has
applied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi
Science and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. This
declaration has been approved by Wuxi Huishan 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 within the useful life of relevant assets when the project is completed.
(9) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and
Xi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated for
industry upgrading in 2014.
(10) New-built assets compensation after the removal of parent company: this fund is the amount transferred from
the special accounts payable, please see the relevant instructions in 33 "special accounts payable"; this amount is
amortized according to the depreciation and amortization schedule of new-built assets, and the write-off amount in
current period is 12,645,145.76 Yuan.
(11) Wuxi business development funds supporting foreign trade transformation and upgrading project (2015):
according to XSC No. [2015] 72, XCGM No. [2015]11, XSC No. [2015]231, and XCGM No. [2015]98, the
company has received the 2015 Wuxi business development funds supporting project funds of 2 million Yuan
appropriated by the Finance Bureau of New District Management Committee of Wuxi Municipal People's
Government for subsidizing the company’s construction of “the research and development of diesel engine high
pressure common rail key components and the production capacity enhancement technological transformation
project”, the project duration is from December 2014 to December 2016; this appropriation belongs to
government subsidies related to assets, and will be amortized within the useful life of assets when the project is
completed.
(12) Wuxi technical research and development institution funds (2015): in accordance with XKJ No. [2015] 157,
XCGM No. [2015] 100, XKJ No. [2013] 160, and XCGM No. [2013] 84, the company has received the 2015
Wuxi technical research and development institution funds of 2 million Yuan appropriated by the Finance Bureau
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
of New District Management Committee of Wuxi Municipal People's Government for subsidizing the company’s
“technical research and development institution enhancement projects”, the project duration is from January
1,2015 to December 31, 2017; this appropriation belongs to government subsidies related to assets, and will be
amortized within the useful life of assets when the project is completed.
34. Share capital
In RMB
Change during the year(+,-)
Shares
Opening balance New shares transferred Closing balance
Bonus share Other Subtotal
issued from capital
reserve
Total shares 1,008,950,570.00 1,008,950,570.00
35. Capital reserve
In RMB
Decreased during the
Item Opening balance Increase during the year Closing balance
year
Capital premium (Share
3,372,210,173.12 3,372,210,173.12
capital premium)
Other Capital reserves 24,725,054.85 24,725,054.85
Total 3,396,935,227.97 3,396,935,227.97
36. Other consolidated income
In RMB
Current Period
Less: written in
other
Belong
comprehensive
Opening to
Item Account before income in
balance Less : income Belong to parent minority Closing balance
income tax in previous period
tax expense company after taxsharehol
the year and carried
ders
forward to gains
after tax
and losses in
current period
II. Other
comprehensive
income items which
188,436,372.50 -44,563,400.00 18,328,698.74 -6,684,510.00 -56,207,588.74 132,228,783.76
will be reclassified
subsequently to profit
or loss
Gains or
losses arising from
changes in fair value 188,436,372.50 -44,563,400.00 18,328,698.74 -6,684,510.00 -56,207,588.74 132,228,783.76
of available-for-sale
financial assets
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Total of other
188,436,372.50 -44,563,400.00 18,328,698.74 -6,684,510.00 -56,207,588.74 132,228,783.76
consolidated income
37. Reasonable reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Safety production costs 914,648.09 8,222,799.77 7,772,897.56 1,364,550.30
Total 914,648.09 8,222,799.77 7,772,897.56 1,364,550.30
Other explanation, including changes and reasons for changes:
According to the “management method of extraction and use the safety production costs for enterprise” Cai Qi
[2012] No.16 jointly issued by Ministry of Finance and Administration of Production Safety Supervision, the
provision is based on the actual operation revenue of last period, extract on average month-by-month basis
through excess regressive method
Among the above safety production costs, including the safety production costs accrual by the Company in line
with regulations and the parts enjoy by shareholders of the Company in safety production costs accrual by
subsidiary in line with regulations.
38. Surplus reserves
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Statutory surplus
510,100,496.00 510,100,496.00
reserves
Total 510,100,496.00 510,100,496.00
Other explanation, including changes and reasons for changes:
Pursuit to the Company Law and Article of Association, the Company extracted statutory surplus reserve on 10
percent of the net profit. No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes
over 50 percent of the registered capital.
39. Retained profit
In RMB
Item This period Last period
Retained profits at the end of last year before adjustment 6,677,890,958.83 5,570,583,069.92
Retained profits at the beginning of the year after adjustment 6,677,890,958.83 5,570,583,069.92
Add: The net profits belong to owners of patent company of this period 943,568,535.72 1,515,388,285.71
Less: Common dividend payable 504,475,285.00 408,080,396.80
Retained profit at period-end 7,116,984,209.55 6,677,890,958.83
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.
114
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
40. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main operating 3,177,043,549.95 2,481,834,855.65 3,191,384,324.10 2,486,566,408.51
Other operating 189,432,902.54 151,447,127.60 199,053,599.54 157,072,625.17
Total 3,366,476,452.49 2,633,281,983.25 3,390,437,923.64 2,643,639,033.68
41. Business tax and surcharges
In RMB
Item Current Period Last Period
Business tax 106,191.33 105,118.36
City maintenance and construction tax 9,408,912.57 9,367,404.21
Educational surtax 6,720,242.66 6,691,003.08
Total 16,235,346.56 16,163,525.65
42. Sales expenses
In RMB
Item Current Period Last Period
Salary and fringe benefit 15,018,158.08 14,453,820.10
Consumption of office materials and business travel charge 4,076,419.39 4,060,067.70
Transportation charge 16,189,625.90 16,876,111.42
Warehouse charge 8,754,937.47 7,832,128.68
Three-guarantee fee 41,790,075.02 35,199,612.15
Business entertainment fee 4,354,155.93 3,654,933.17
Other 2,615,997.46 3,038,139.47
Total 92,799,369.25 85,114,812.69
43. Administration expenses
In RMB
Item Current Period Last Period
Salary and fringe benefit 117,414,017.83 115,885,283.08
Depreciation charger and long-term assets amortization 22,851,390.36 23,862,832.96
Consumption of office materials and business travel charge 8,977,407.83 10,193,844.89
Tax 9,072,563.99 7,575,179.96
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Other 156,281,154.91 136,256,936.92
Total 314,596,534.92 293,774,077.81
44. Financial expenses
In RMB
Item Current Period Last Period
Interest expenses 7,012,656.62 7,568,318.34
Note discount interest expenses 499,399.16 1,085,681.85
Saving interest income -11,331,400.72 -24,019,365.88
Gains/losses from exchange 362,741.04 9,581,587.54
Handling charges 547,112.47 1,616,408.48
Total -2,909,491.43 -4,167,369.67
45. Asset impairment loss
In RMB
Item Current Period Last Period
I. Bad debt loss -2,438,608.07 251,287.53
II. Inventory falling price loss 212,052.39
Total -2,226,555.68 251,287.53
46. Investment income
In RMB
Item Current Period Last Period
Income of long-term equity investment calculated based on equity 593,102,462.02 606,080,898.87
Investment income from holding financial assets available for sales 98,639,783.02 74,212,675.77
Investment income obtained from disposal of financial assets
20,210,318.13 102,044,890.13
available for sales
Total 711,952,563.17 782,338,464.77
47. Non-operating income
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gains/losses
Non-current assets disposal gains 724,772.79 16,067,700.28 724,772.79
Including: fixed assets disposal gains 724,772.79 16,067,700.28 724,772.79
Government subsidy 15,821,482.47 60,694,363.98 15,821,482.47
Other 2,201,127.47 435,953.35 2,201,127.47
Total 18,747,382.73 77,198,017.61 18,747,382.73
116
无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Government subsidy reckoned into current gains/losses:
In RMB
Whether the
Issuin Whether
Issuin impact of Assets
g Proper special Amount of Amount of
Item g subsidies on related/Income
subjec ty type subsidie this period last period
cause the current related
t s
profit and loss
Steady post subsidy of Wuxi City No No 1,747,144.00 Income related
Subsidy of economy and
Income related
information form Hubin District No No 210,000.00
/Assets related
Wuxi
Budget subsidy of the 1st
technology project of Ningbo for No No 240,000.00 Income related
year of 2016
Industrialization project for
injection VE pump system with
electronically controlled high No No 721,000.30 721,000.30 Assets related
pressure for less-emission diesel
used
Award fund of innovation
supporting for technological No No 820,000.00 Income related
corporation
Funds for post doctor of Ningbo
No No 100,000.00 Income related
for year of 2014
Award for the key small and micro
businesses which turns to a
No No 46,000.00 Income related
large-scale enterprise in Wuxi for
year of 2014
Subsidy of sharpened teeth of
Jiangbei District, Ningbo for year No No 30,000.00 Income related
of 2014
Subsidy of patent licensing for
2014.7-2014.10 of the
No No 12,000.00 Income related
management committee of
Jiangbei District, Ningbo City
Compensation of relocation losses Income related
No No 57,116.41 58,965,363.68
of parent company /Assets related
Depreciation / amortization
compensation of new assets after Income related
No No 12,645,145.76
the relocation of the parent /Assets related
company
Income related
Other No No 201,076.00
/Assets related
Total -- -- -- -- -- 15,821,482.47 60,694,363.98 --
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
48. Non-operating expenditure
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gains/losses
Non-current assets disposal losses 1,461,331.21 814,848.79 1,461,331.21
Including: fixed assets disposal losses 1,461,331.21 814,848.79 1,461,331.21
Donations 13,500.00 13,500.00
Relocation expenditures of parent company 57,116.41 53,835,107.52 57,116.41
Local fund etc. 415,449.09 2,117,680.69
Other 388,425.31 156,706.71 388,425.31
Total 2,335,822.02 56,924,343.71 1,920,372.93
49. Income tax expense
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 70,384,886.62 85,350,566.93
Adjusted the previous income tax -855,649.30 -3,950,301.30
Increase/decrease of deferred income tax assets -1,159,293.64 6,840,468.91
Increase/decrease of deferred income tax liability -55,516.50 -55,516.50
Total 68,314,427.18 88,185,218.04
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 1,043,063,389.50
Income tax measured by statutory/applicable tax rate 156,459,508.43
Impact by different tax rate applied by subsidies -953,503.62
Adjusted the previous income tax -855,649.30
Impact by non-taxable revenue -88,611,636.99
Impact by the deductible losses of the un-recognized previous deferred income tax -2,460,864.86
The deductible temporary differences or deductible losses of the un-recognized differed income tax
5,350,303.81
assets in the Period
Other -613,730.29
Income tax expense 68,314,427.18
50. Other comprehensive income
See Note VII. 36 “Other comprehensive income”
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
51. Items of statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Income from bank deposit interest 12,545,169.83 23,562,295.35
Operational government subsidy 3,742,518.00 3,112,600.00
Other 1,445,995.66 123,385.67
Total 17,733,683.49 26,798,281.02
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Expenses of sales cash paid 65,790,445.89 42,799,085.61
Expenses of management cash paid 72,594,294.94 77,452,273.07
Other 2,281,440.94 1,561,600.71
Total 140,666,181.77 121,812,959.39
(3) Cash received from other investment activities
In RMB
Item Current Period Last Period
Government subsidy received relevant to assets 4,994,867.00
Relocation compensation received 25,301,600.00 145,230,000.00
Total 30,296,467.00 145,230,000.00
(4) Cash paid related with investment activities
In RMB
Item Current Period Last Period
Relocation expenses paid 57,116.41 37,388,366.46
Total 57,116.41 37,388,366.46
52. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 974,748,962.32 1,070,089,476.58
Add: Assets impairment provision -2,226,555.68 251,287.53
Depreciation of fixed assets, consumption of oil assets and depreciation 110,533,165.50 90,133,118.81
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
of productive biology assets
Amortization of intangible assets 9,213,054.51 7,527,399.00
Amortization of long-term deferred expenses 4,364,011.79 3,294,049.37
Loss from disposal of fixed assets, intangible assets and other long-term
736,558.42 -15,252,851.49
assets(gain is listed with “-”)
Loss of disposing fixed assets(gain is listed with “-”) -5,130,256.16
Financial expenses (gain is listed with “-”) 7,012,656.62 7,568,318.34
Investment loss (gain is listed with “-”) -708,009,958.62 -782,338,464.77
Decrease of deferred income tax asset( (increase is listed with “-”) -1,159,293.64 6,840,468.91
Increase of deferred income tax liability (decrease is listed with “-”) -55,516.50 -55,516.50
Decrease of inventory (increase is listed with “-”) -40,577,084.43 153,225,376.86
Decrease of operating receivable accounts (increase is listed with “-”) -489,337,981.64 -227,343,576.83
Increase of operating payable accounts (decrease is listed with “-”) 340,555,506.97 129,477,321.20
Other -12,256,510.67
Net cash flow arising from operating activities 193,541,014.95 438,286,150.85
2. Material investment and financing not involved in cash flow -- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 1,053,514,060.95 1,401,913,809.50
Less: Balance of cash equivalent at year-begin 3,040,315,198.85 2,028,227,816.93
Net increasing of cash and cash equivalents -1,986,801,137.90 -626,314,007.43
(2) Constitution of cash and cash equivalent
Item Closing balance Opening balance
Ⅰ. Cash 1,053,514,060.95 3,040,315,198.85
Including: stock cash 599,430.35 774,120.49
Bank deposit available for payment at any time 1,052,914,630.60 1,401,139,689.01
Ⅲ. Balance of cash and cash equivalent at period-end 1,053,514,060.95 3,040,315,198.85
53. Notes for the statement of owners equity changes
Explain the items and adjusted amounted which have adjsuted in “Other” of last year’s ending balance: nil
54. Assets with ownership or use right restricted
In RMB
Item Book value at Period-end Reason
Monetary fund 359,224.68 Margins paid for opening the LC
Notes receivable 22,324,948.91 Notes pledge for opening bank acceptance bill
Monetary fund 46,532,468.60 fixed deposit receipt of margins and pledge paid for opening the LC
Total 69,216,642.19 --
55. Item of foreign currency
(1) Item of foreign currency
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Item Closing balance of foreign currency Rate of conversion Ending RMB balance converted
Monetary fund
Including: USD 9,803,873.66 6.6312 65,011,447.03
EUR 749,960.37 7.3750 5,530,957.74
JPY 1,487,169.00 0.064491 95,909.02
Accounts receivable
Including: USD 2,297,868.30 6.6312 15,237,624.27
EUR 1,588,159.16 7.3750 11,712,673.80
JPY 183,540.00 0.064491 11,836.68
Accounts payable
Including: USD 776,971.23 6.6312 5,152,251.62
EUR 4,561,993.37 7.3750 33,644,701.11
CHF 17,601.80 6.7730 119,216.99
JPY 202,000,345.00 0.064491 13,027,204.24
Other payable
Including: USD 11,410.98 6.6312 75,668.49
EUR 145.21 7.3750 1,070.92
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
Nil
2. Enterprise merger under the same control
Nil
3. Reverse purchase
Nil
4. The disposal of subsidiaries
Whether there is a single disposal of the investment in subsidiaries that is the loss of control
□ Yes √ No
Whether there is disposal of the investment in subsidiaries through multiple transactions step by step and loss of control in the current
period
□ Yes √ No
5. Other reasons for consolidation range changed
Nil
6. Other
Nil
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Share-holding ratio
Registered
Subsidiary operation Business nature Acquired way
place Directly Indirectly
place
Spare parts of Enterprise merger under
Weifu Jinning Nanjing Nanjing 80.00%
internal-combustion engine the same control
Automobile exhaust purifier, Enterprise merger under
Weifu Leader Wuxi Wuxi 94.81%
muffler the same control
Spare parts of
Weifu Mashan Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
Weifu Chang’an Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
Weifu Diesel System Wuxi Wuxi 100.00% Investment
internal-combustion engine
Weifu International Enterprise merger under
Wuxi Wuxi International trade 100.00%
Trade the same control
Spare parts of Enterprise merger not
Weifu ITM Wuxi Wuxi 100.00%
internal-combustion engine under the same control
Spare parts of
Weifu Schmidt Wuxi Wuxi 66.00% Investment
internal-combustion engine
Spare parts of Enterprise merger not
Weifu Tianli Ningbo Ningbo 51.00%
internal-combustion engine under the same control
Spare parts of
Weifu Tianshi Quanjiao Quanjiao 52.00% Investment
internal-combustion engine
Spare parts of Enterprise merger not
Kunming Xitong Kunming Kunming 70.00%
internal-combustion engine under the same control
Spare parts of Enterprise merger not
Weifu Autocam Wuxi Wuxi 51.00%
internal-combustion engine under the same control
Weifu Leader Automobile exhaust purifier,
Wuhan Wuhan 0.00% 60.00% Investment
(Wuhan) muffler
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
(2) Important non-wholly-owned subsidiary
In RMB
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% 6,540,982.28 150,830,682.66
Weifu Schmidt 34.00% -2,387,538.65 4,124,910.77
Weifu Leader 5.19% 6,833,632.70 74,240,923.14
Weifu Tianli 49.00% -192,569.16 91,910,173.27
Weifu Tianshi 48.00% -57,267.39 -198,807.50
Kunming Xitong 30.00% -46,675.43 1,087,928.48
Weifu Autocam 49.00% 20,489,862.25 139,172,235.73
Total 31,180,426.60 461,168,046.55
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Closing balance Opening balance
Subsidia
ry Current Non-current Current Non-current Non-current Current Non-current
Total assets Total liability Current assets Total assets Total liability
assets assets liability liability assets liability liability
Weifu 671,852,054. 313,252,188.8 40,765,628.8 229,820,119.5 548,237,680.6 343,321,597.9 891,559,278.6 128,148,096.1 169,634,725.3
985,104,243.03 189,054,490.63 41,486,629.17
Jinning 18 5 7 0 7 6 3 6 3
Weifu 34,224,967.3
25,836,029.14 60,060,996.53 47,534,668.82 0.00 47,534,668.82 29,714,758.45 29,849,811.43 59,564,569.88 39,648,927.85 39,648,927.85
Schmidt 9
Weifu 1,836,481,79 748,742,055.0 2,585,223,851.9 1,147,272,396. 15,560,633.3 1,162,833,029. 1,719,634,051. 691,177,551.3 2,410,811,603. 1,109,736,842. 1,119,249,008.
9,512,166.33
Leader 6.85 9 4 29 3 62 96 9 35 00 33
Weifu 205,349,723. 226,146,155.0 243,773,512.4 192,818,266.2 219,519,499.9 412,337,766.1 218,145,189.8 224,310,455.2
431,495,878.45 237,663,763.57 6,109,748.89 6,165,265.39
Tianli 40 5 6 0 9 9 3 2
Weifu
6,985,492.08 0.00 6,985,492.08 7,399,674.36 0.00 7,399,674.36 7,280,247.41 0.00 7,280,247.41 7,575,122.62 0.00 7,575,122.62
Tianshi
Kunmin
3,791,949.67 1,213.98 3,793,163.65 158,661.72 0.00 158,661.72 3,910,009.89 435,263.99 4,345,273.88 555,187.18 0.00 555,187.18
g Xitong
Weifu
205,006,420. 162,686,605.4 151,536,794.3 160,420,877.2 311,957,671.6
Autoca 367,693,025.60 86,548,831.57 0.00 86,548,831.57 72,614,253.59 0.00 72,614,253.59
16 4 7 3 0
m
In RMB
Current Period Last Period
Subsidiary Total comprehensive Cash flow from Total comprehensive Cash flow from
Operation Income Net profit Operation Income Net profit
income operation activity income operation activity
Weifu Jinning 251,871,381.48 33,326,813.22 33,326,813.22 -15,144,839.00 174,054,625.68 -185,538.54 -185,538.54 73,556,860.10
Weifu Schmidt 18,095,244.63 -7,031,822.34 -7,031,822.34 2,058,637.80 18,491,795.86 -2,101,294.96 -2,101,294.96 -2,886,241.49
Weifu Leader 1,218,577,303.58 130,828,227.30 130,828,227.30 31,688,157.98 1,325,968,298.36 140,826,072.11 140,826,072.11 9,548,896.25
Weifu Tianli 118,889,212.91 -414,592.85 -414,592.85 15,712,439.69 123,440,877.63 588,351.07 588,351.07 2,658,537.39
Weifu Tianshi 117,324.79 -119,307.07 -119,307.07 189,561.81 2,803,490.60 -1,222,828.57 -1,222,828.57 -1,233,489.21
Kunming Xitong 119,032.65 -155,584.77 -155,584.77 1,839,997.79 3,045,435.88 -416,477.41 -416,477.41 361,596.54
Weifu Autocam 229,131,152.17 41,800,776.02 41,800,776.02 69,446,207.30 177,429,223.63 36,423,818.15 36,423,818.15 50,096,705.93
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding ratio Accounting
treatment on
Main
Registere investment for
Name operation Business nature
d place Directly Indirectly joint venture
place
and cooperative
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst Co.,
Wuxi Wuxi Catalyst 49.00% 0.00% Equity method
Ltd.(referred to as "Weifu Environment )
II. Cooperative enterprise
Internal
Bosch Automobile Diesel System Co.,
Wuxi Wuxi combustion engine 32.50% 1.50% Equity method
Ltd(referred to as "Bosch Diesel System")
and attachment
Internal
Zhonglian Automobile Electronic Co.,
Shanghai Shanghai combustion engine 20.00% 0.00% Equity method
Ltd.(referred to as "Zhonglian Automobile ")
and attachment
Internal
Wuxi Weifu Fine Machinery Manufacturing Co.,
Wuxi Wuxi combustion engine 20.00% 0.00% Equity method
Ltd. (referred to as "Weifu Fine Machinery ")
and attachment
(2) Main financial information of the important joint venture
In RMB
Closing balance /Current Period Opening balance /Last Period
Weifu Environment Weifu Environment
Current assets 1,368,652,768.04 1,199,654,597.10
Including: cash and cash equivalents 105,282,439.16 19,047,216.15
Non -current assets 176,628,037.52 146,472,315.03
Total assets 1,545,280,805.56 1,346,126,912.13
Current liabilities 678,504,781.73 548,344,086.38
Non –current liabilities 8,889,484.00 8,698,000.00
Total liabilities 687,394,265.73 557,042,086.38
Minority shareholders’ equity 857,886,539.83 789,084,825.75
Attributable to parent company
420,364,404.52 386,651,564.62
shareholders’ equity
Book value of equity investment in joint
420,364,404.52 386,651,564.62
ventures
Operation income 1,197,521,245.04 1,051,026,112.86
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Financial expense 17,722,869.23 23,845,029.05
Income tax expense 13,843,582.93 15,166,793.77
Net profit 72,422,856.93 66,995,942.34
Total comprehensive income 72,422,856.93 66,995,942.34
(3) Main financial information of the important cooperative enterprise
In RMB
Closing balance /Current Period Opening balance /Last Period
Zhonglian Weifu Fine Zhonglian Weifu Fine
Bosch Diesel Bosch Diesel
Automobile Machinery Automobile Machinery
Current assets 4,196,689,224.04 829,374,116.41 218,012,083.94 4,614,814,311.00 44,138,168.73 178,955,551.82
Non -current assets 2,977,582,563.22 3,270,940,218.97 153,170,495.24 3,173,143,652.00 3,228,859,860.11 159,197,399.31
Total assets 7,174,271,787.26 4,100,314,335.38 371,182,579.18 7,787,957,963.00 3,272,998,028.84 338,152,951.13
Current liabilities 2,731,574,916.15 830,315,168.16 140,952,783.48 2,047,007,144.00 51,444,434.83 121,624,912.99
Non –current
2,162,970.00 2,304,990.00
liabilities
Total liabilities 2,731,574,916.15 832,478,138.16 140,952,783.48 2,047,007,144.00 53,749,424.83 121,624,912.99
Attributable to parent
company 4,442,696,871.11 3,267,836,197.22 230,229,795.70 5,740,950,819.00 3,219,248,604.01 216,528,038.14
shareholders’ equity
Share of net assets
calculated by 1,510,516,936.18 653,567,239.44 46,045,959.14 1,951,923,278.46 643,849,720.80 43,305,607.63
shareholding ratio
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized profit of
-14,741,658.23 -13,865.03 -10,807,106.04 -5,812.68
internal trading
--Other -1.46 -529,034.05 -0.62 -529,034.05
Book value of equity
investment in joint 1,763,564,037.84 654,974,505.40 45,503,060.06 2,208,904,933.15 645,256,986.76 42,770,760.90
ventures
Operation income 4,980,318,551.05 6,785,544.55 82,788,909.34 5,291,426,049.00 3,885,020.44 113,163,699.52
Net profit 1,125,855,393.67 862,587,593.21 13,701,757.56 1,239,568,252.00 721,344,954.17 16,498,388.53
Total comprehensive
1,125,855,393.67 862,587,593.21 13,701,757.56 1,239,568,252.00 721,344,954.17 16,498,388.53
income
Dividends received
from joint venture in 625,424,809.56 3,600,000.00 641,416,774.00
the year
(4) Financial summary for non-important Joint venture and affiliate enterprise
Nil
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates
Nil
(6) Excess loss occurred in joint venture or affiliates
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
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 VII. 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 carrying risk management, supervise the vary risks timely and reliably in order to control the risk in a
limited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainly
including credit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the risk
management target and policy-making, and takes ultimate responsibility for the target of risk management and
policy. Risk management department and financial control department manager and monitor those risk exposure
to ensuring the risks are control in a limited range.
1. Credit Risk
Credit risk refers to the one party fails to perform the obligation of the financial instruments, form the other party
company mainly face credit risk for financial loss caused by the customer credit risks. In order to prevent the risks,
the Company formulated an evaluation system for the new client’s credit and system to analyze the book credit for
regular customer. The evaluation system for the new client’s credit aims at the new clients, the Company will
conduct an background investigation based on the established process, with purpose of determine whether offer
credit limit to the client and the amount of the credit and credit terms or not. Whereby, the Company setting a
credit limits and credit period for every new client and such limit is the maximum amount without additional
approval. The system to analyze the book credit for regular customer refers to after purchase order received by
regular customer, the Company will examine the order amount and outstanding balance, if the total over the credit
limit, on the premise of additional approval, sales on account shall be realized, or prepayments for relevant
amount shall be required.
Furthermore, as for the sales on account occurred, the Company will guarantee the total credit risks in a
controlling range by analyzed and review the monthly report of the risk attention for account receivables.
The maximum credit risk exposure of the Company is the book amount of such financial assets, till end of 30 June
2016; lists of the maximum credit risk exposure of the Company are as:
Item Amount of merge Amount of parent company
Accounts receivable 1,738,607,467.83 635,579,363.08
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Other receivables 12,278,400.19 50,575,831.27
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 produces, 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 expactation 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 and JPY, except for the USD, EUR, SF and JPY carried out for the equipment
purchasing of parent company and Autocam, system material purchasing from Weifu Diesel, system technical
service and trademark usage costs from Weifu Diesel and the import and export of Weifu International Trade,
other main business of the Company are pricing and settle with RMB (Yuan). In consequence of the foreign
financial assets and liabilities takes minor ratio in total assets, the Company has small FX risk of the financial
instrument, considered by management of the Company.
End as 30 June 2016, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
the Company are carried with RMB
1. Foreign currency assets of the Company till end of 30 June 2016:
Ending foreign currency Ending RMB balance
Item Convert rate Ratio in assets(%)
balance converted
Monetary fund
Including: USD 9,803,873.66 6.6312 65,011,447.03 0.39
EUR 749,960.37 7.375 5,530,957.74 0.03
JPY 1,487,169.00 0.064491 95,909.02 -
Accounts receivable
Including: USD 2,297,868.30 6.6312 15,237,624.27 0.09
EUR 1,588,159.16 7.3750 11,712,673.80 0.07
JPY 183,540.00 0.064491 11,836.68 -
Total ratio in assets 0.58
2. Foreign currency liabilities of the Company till end of 30 June 2016:
Ending foreign currency Ending RMB balance
Item Convert rate Ratio in liabilities(%)
balance converted
Accounts payable
Including: USD 776,971.23 6.6312 5,152,251.62 0.13
EUR 4,561,993.37 7.3750 33,644,701.11 0.83
JPY 17,601.80 6.7730 119,216.99
CHF 202,000,345.00 0.064491 13,027,204.24 0.32
Other payable
Including: USD 11,410.98 6.6312 75,668.49
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EUR 145.21 7.3750 1,070.92
Total ratio in liabilities 1.28
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 risks of stock market
changes.
Furthermore, on the premise of deliberated and approved in 16th meeting of 7th session of the Board, 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 st security investment as well as other investment
with securities concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the
enterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has rich
capital to pay the due debts, therefore, a financial control department is established for collectively controlling
such risks. On the one hand, the financial control department monitoring the cash balance, the marketable
securities which can be converted into cash at any time and the rolling forecast on cash flow in future 12 months,
ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the other
hand, building a favorable relationship with the banks, rationally design the line of credit, credit products and
credit terms, guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing
requirements.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(II) Available for sale financial assets 362,880,200.00 362,880,200.00
(2) Equity instrument investment 362,880,200.00 362,880,200.00
Total assets sustaining measured by fair value 362,880,200.00 362,880,200.00
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 2016, the
financial assets available for sale-equity instrument investment held by the Company refers to the SDEC (stock
code: 600841) and Miracle Logistics (Stock code: 002009), determining basis of the market price at period-end
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refers to the current closing price.
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Registration Voting right ratio on
Parent company Business nature Registered capital on the enterprise for
place the enterprise
parent company
Operation of
Wuxi Industry Group Wuxi RMB 3,688,671,000 20.22% 20.22%
state-owned assets
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. Cooperative enterprise and joint venture
Found more in Note IX.3. “Equity in joint venture and cooperative enterprise”
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious
period:
Nil
4. Other related party
Other related party Relationship with the Enterprise
Germany BOSCH The 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
Approved transaction Whether more than
Related party Content Current Period Last Period
limit the transaction limit
Weifu Fine Machinery Goods 16,692,661.89 35,000,000.00 No 20,248,305.78
Bosch Diesel System Goods 71,879,082.59 150,000,000.00 No 80,847,225.31
Weifu Environment Goods 572,939,263.87 1,350,000,000.00 No 563,994,116.70
Germany BOSCH Goods 44,661,132.84 100,000,000.00 No 42,908,813.48
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Weifu Fine Machinery Goods 1,609,312.89 2,015,589.87
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Bosch Diesel System Goods 916,860,426.59 836,300,560.54
Weifu Environment Goods 11,734,655.85 11,564,447.60
Germany BOSCH Goods 570,053.25 1,323,647.83
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
Nil
(4) Related guarantee
Nil
(5) Related party’s borrowed funds
Nil
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 2,184,000.00 3,817,000.00
(8) Other related transactions
In RMB
Item Related party Current Period Last Period
Fee for tech-service payable etc. Bosch Diesel System 596,624.00
Fixed assets purchased Bosch Diesel System 4,810,403.83
Fixed assets purchased Weifu Environment 170,940.17
Technology royalties paid etc. Germany BOSCH 4,346,866.88 5,016,667.78
Sales of fixed assets Weifu Environment 141,880.34 226,495.72
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Closing balance Opening balance
Item Related party
Book balance Bad debt reserves Book balance Bad debt reserves
Weifu Fine
Account receivable 702,984.40 596,182.91 860.57
Machinery
Account receivable Bosch Diesel System 383,735,803.94 6,900.01 222,589,877.00 12,944.94
Account receivable Germany BOSCH 2,021,086.18 58,697.79 1,666,078.58 58,697.79
Account receivable Weifu Environment 0.00 4,862,500.03
Account paid in
Bosch Diesel System 6,105.60
advance
Account paid in
Weifu Environment 71,884.73 1,948,322.26
advance
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Note payable Weifu Environment 400,000,000.00 400,000,000.00
Account payables Weifu Fine Machinery 11,431,615.39 8,098,454.12
Account payables Weifu Environment 199,799,898.50 170,912,898.48
Account payables Bosch Diesel System 12,685,995.75 8,572,119.38
Account payables Germany BOSCH 23,875,112.87 3,957,347.73
Other payables Weifu Fine Machinery 277.72
Other payables Bosch Diesel System 49,745.00
Account received in advance Weifu Environment 1,427,299.97
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 Terminated guarantee
Guarantee provided Debit bank (in 10 thousand Starting from
received dated implemented or
Yuan)
not
Weifu High-Technology Weifu Ningbo branch of China
6,000.00 2013-12-24 2016-12-23 N
Group Co., Ltd. Tianli Everbright Bank
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
In RMB
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Profit or dividend plans to distributed 504,475,285.00
Profit or dividend declare to distributed which have been approved 504,475,285.00
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 meeting of 7th
session of the Board: in order to mobilize the initiative and creativity of the employees, established a talent
long-term incentive mechanism, enhance the cohesive force and competitiveness in enterprise, the Company
carried out the above mentioned annuity plan since the date of reply of plans reporting received from labor
security administration department. Annuity plans are: the annuity fund are paid by the enterprise and employees
together; the amount paid by enterprise shall not over the 1/12 of the total salary of last years, amount paid by
individual and enterprise shall not over the 1/6 of the total salary of last year, in accordance with the State’s
annuity policy, the Company will adjusted the economic benefits in due time, in principle of responding to the
economic strength of the enterprise, the amount paid by the enterprise at current period control in the 5 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. Segment
(1) Recognition basis and accounting policy for reportable segment
(1) 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
parts, muffler and purifier etc., based on the product segment, the Company determine three reporting segment as
auto fuel injection system, air intake system and car after-treatment system. Accounting policy for the three
reporting segments are shares the same policy state in Note III
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
(2) Financial information for reportable segment
In RMB
Item Product segment of Product segment of Product segment of Offset of segment Total
automotive fuel automotive air intake automotive
injection system system post-processing
system
Operating revenue 2,783,349,506.04 1,218,577,303.58 142,768,495.08 778,218,852.21 3,366,476,452.49
Operating cost 2,283,559,788.29 1,009,103,223.03 112,164,127.51 771,545,155.58 2,633,281,983.25
Total profit 905,416,272.06 147,637,525.73 -7,623,235.78 2,367,172.51 1,043,063,389.50
Net profit 853,679,772.07 130,828,227.30 -7,540,703.17 2,218,333.88 974,748,962.32
Total assets 16,779,519,620.04 2,585,223,851.94 579,916,228.23 3,248,039,382.62 16,696,620,317.59
Total liabilities 4,138,654,738.14 1,162,833,029.62 299,810,016.68 1,532,409,350.98 4,068,888,433.46
6. Major transaction and events makes influence on investor’s decision
On 31 May 2016, the Company held the 7th meeting of the 8th board of directors, to consider and approve the
resolution relating to the wholly-owned subsidiary of the Company proposing to establish industry merger &
acquisition funds. In order to accelerate the Company’s industrial upgrade and development speed, preserve
merger & acquisition projects, improve its comprehensive strength and realize development strategy, the
Company agreed with Ping’an Securities in reaching for initial cooperation plan. Weifu Auto Diesel, a
wholly-owned subsidiary of the Company, proposed to cooperate with Ping’an Ronghui which was established by
Ping’an Caizhi (a wholly-owned subsidiary of Ping’an Securities) to establish business merger & acquisition
funds.
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
Closing balance Opening balance
Bad debt
Book balance Bad debt reserves Book balance
Types Book reserves
Book value
Accru value Rati Accru
Amount Ratio Amount Amount Amount
al ratio o al ratio
Receivables
with bad debt
100.00 4,120,181.8 635,579,3 541,526,427 100. 4,021,840.
provision 639,699,544.96 0.64% 0.74% 537,504,587.17
% 8 63.08 .64 00% 47
accrual by credit
portfolio
100.00 4,120,181.8 635,579,3 541,526,427 100. 4,021,840.
Total 639,699,544.96 0.64% 0.74% 537,504,587.17
% 8 63.08 .64 00% 47
Account receivable with single significant amount and withdrawal bad debt provision separately at period end :
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
In RMB
Closing balance
Age
Account receivable Bad debt reserves Accrual ratio
Sub item of within one year
Within 6 months 253,868,238.34
6 months to one year 16,103,125.92 1,610,312.60 10.00%
Subtotal within one year 269,971,364.26 1,610,312.60
1-2 years 1,440,926.40 288,185.28 20.00%
2-3 years 212.44 84.97 40.00%
Over 3 years 2,221,599.03 2,221,599.03 100.00%
Total 273,634,102.13 4,120,181.88 1.51%
Explanations on combination determine:
Except for the receivables with impairment reserves accrual singly; base on the actual loss ratio of the receivables
of previous years, with same or similar credit portfolio, and combining actual condition accrual bad debt reserves
to determined the accrual ratio for bad debt reserves
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable: nil
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 108,757.68 Yuan; collected or reversed 0.00 Yuan.
The major amount of bad debt provision which switch-back or collected in the Period: nil
(3) Receivables actually written-off during the reporting period
In RMB
Item Written-off
Sporadic households 10,416.27
The important receivables written-off: nil
(4) Top 5 receivables at ending balance by arrears party
Total receivables collected by arrears party for the Period amounting to RMB482,307,970.09, takes 75.40 percent
in closing balance of the account receivables, RMB 6,900.01 are accrual correspondingly for bad debt reserves.
2. Other accounts receivable
(1) Classification
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt reserves
Type reserves
Book value Book value
Accrua Accrual
Amount Ratio Amount Amount Ratio Amount
l ratio ratio
Other receivable with
single significant
50,600,611.5 100.0 24,780.3 50,575,831. 81,969,397.1 100.00 81,906,796.
amount and 0.05% 62,600.20 0.08%
9 0% 2 27 5 % 95
withdrawal bad debt
provision separately
50,600,611.5 100.0 24,780.3 50,575,831. 81,969,397.1 100.00 81,906,796.
Total 0.05% 62,600.20 0.08%
9 0% 2 27 5 % 95
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other receivable Bad debt reserves Accrual ratio
Sub item of within one year
Within 6 months 3,471,430.80
6 months to one year 65,000.00 6,500.00 10.00%
Subtotal within one year 3,536,430.80
1-2 years 36,960.00 7,392.00 20.00%
2-3 years 27,220.79 10,888.32 40.00%
Total 3,600,611.59 18,280.32 0.51%
Explanations on combination determine:
Except for the other receivables with impairment reserves accrual singly; base on the actual loss ratio of the
receivables of previous years, with same or similar credit portfolio, and combining actual condition accrual bad
debt reserves to determined the accrual ratio for bad debt reserves
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□ Applicable √ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision0.00 Yuan; collected or reversed 37,819.88 Yuan
Including major amount of bad debt provision which switch-back or collected in the Period: nil
(3) Other receivables actually written-off during the reporting period
Nil
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 3,572,430.80 1,560,675.40
Balance of related party within the scope of the merger 47,000,000.00 80,000,000.00
Other 28,180.79 408,721.75
Total 50,600,611.59 81,969,397.15
(5) Top 5 other receivables at ending balance by arrears party
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Ratio in total ending
Ending balance of
Company Nature Closing balance Book age balance of other
bad bet provision
receivables
Current money with
Weifu Chang’an 35,000,000.00 Within 6 months 69.17%
the subsidiary
Current money with
Weifu International Trade 12,000,000.00 Within 6 months 23.72%
the subsidiary
Changzhou Taipute Technology fee 18,624.29 2-3 years 0.04% 7,449.72
Wuxi Xingchang Machinery
Technology fee 3,672.00 2-3 years 0.01% 1,468.80
Components Plant
Wuxi Klis Machinery Mould
Technology fee 2,040.00 Within 3 years 0.00% 624.00
Manufacturing Co., Ltd.
Total -- 47,024,336.29 -- 92.94% 9,542.52
3. Long-term equity investment
In RMB
Closing balance Opening balance
Item Impairme
Book balance Impairment Book value Book balance Book value
nt
Investment for subsidiary 1,701,571,723.71 1,701,571,723.71 1,431,571,723.71 1,431,571,723.71
Investment for associates
2,396,115,293.26 2,396,115,293.26 2,809,633,749.39 2,809,633,749.39
and joint venture
Total 4,097,687,016.97 4,097,687,016.97 4,241,205,473.10 4,241,205,473.10
(1) Investment for subsidiary
In RMB
Impairment Ending balance of
The invested entity Opening balance Increased Decreased Closing balance
accrual impairment provision
Weifu Jinning 178,639,593.52 178,639,593.52
Weifu Leader 460,113,855.00 460,113,855.00
Weifu Diesel System 260,187,500.00 260,187,500.00
Weifu Mashan 48,693,380.51 120,000,000.00 168,693,380.51
Weifu Chang’an 70,902,037.30 150,000,000.00 220,902,037.30
Weifu International Trade 30,999,996.22 30,999,996.22
Weifu ITM 167,000,000.00 167,000,000.00
Weifu Schmidt 31,680,000.00 31,680,000.00
Weifu Tianli 90,229,100.00 90,229,100.00
Kunming Xitong 5,471,793.17 5,471,793.17
Weifu Tianshi 5,200,000.00 5,200,000.00
Weifu Autocam 82,454,467.99 82,454,467.99
Total 1,431,571,723.71 270,000,000.00 1,701,571,723.71
(2) Inve
stment for associates and joint venture
In RMB
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
+,- Endin
g
Other Othe balan
Additi Capit compre r Impair
Company Opening balance onal Investment Cash dividend or Ot Closing balance ce of
al hensive equit ment impai
gains recognized profit announced he
invest reduc income y accrua rment
under equity to issued r
ment tion adjustm chan l provis
ent ge ion
I. Joint venture
II. Associated enterprise
Bosch
2,121,645,647.54 361,878,828.80 -787,835,536.80 1,695,688,939.54
Diesel
Zhonglian
Automobi 645,256,986.76 172,517,518.64 -162,800,000.00 654,974,505.40
le
Weifu
Fine
42,731,115.09 2,720,733.23 45,451,848.32
Machiner
y
Subtotal 2,809,633,749.39 537,117,080.67 -950,635,536.80 2,396,115,293.26
Total 2,809,633,749.39 537,117,080.67 -950,635,536.80 2,396,115,293.26
4. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main business 900,441,396.25 732,893,304.94 797,148,642.77 610,786,653.56
Other business 83,628,572.55 75,450,767.60 83,084,533.70 82,621,552.01
Total 984,069,968.80 808,344,072.54 880,233,176.47 693,408,205.57
5. Investment gains
In RMB
Item Current Period Last Period
Income of long-term equity investment calculated based on cost 0.00 16,000,000.00
Income of long-term equity investment calculated based on equity 537,117,080.67 572,172,697.97
Investment income from period of holding
97,467,810.42 74,212,675.77
the financial assets available for sale
Investment income obtained from disposal of financial assets available for
20,210,318.13 102,044,890.13
sale
Total 654,795,209.22 764,430,263.87
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset -736,558.42
Governmental subsidy reckoned into current gains/losses (not including the subsidy 15,821,482.47 Including government
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
enjoyed in quota or ration according to national standards, which are closely relevant subsidy income
to enterprise’s business) received from
relocation by policy
Profit and loss of assets delegation on others’ investment or management 97,055,393.89
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 sales, 20,210,318.13
exclude the effective hedging business relevant with normal operations of the
Company
Switch-back of impairment of account receivable that practice impairment test
1,012,469.08
independent
Other non-operating income and expenditure except for the aforementioned items 1,799,202.16
Relocation expenses -57,116.41
Less: Impact on income tax 20,456,474.29
Impact on minority shareholders’ equity 712,898.02
Total 113,935,818.59 --
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
2. REO and earnings per share
Weighted Earnings per share
Profits during report period
average ROE Basic EPS (RMB/Share) Diluted EPS (RMB/Share)
Net profits belong to common stock stockholders of the
7.72% 0.94 0.94
Company
Net profits belong to common stock stockholders of the
6.79% 0.82 0.82
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
4. Other
Nil
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无锡威孚高科技集团股份有限公司 2016 年半年度报告全文
Section X. 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.
Board of Directors of
Weifu High-Technology Group Co., Ltd.
Chairman:
Chen Xuejun
25 August 2016
139
