Stock Code: 000581, 200581 Notice No.: 2019-031 Short Form of the Stock: Weifu High-Tech, Su Weifu-B WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. TEXT OF THIRD QUARTERLY REPORT 2019 Section I. Important Notes Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. All directors of the Company are attended the Meeting for quarterly report deliberation. Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Work; Ou Jianbin, Person in Charge of Accounting Organization (Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 22,823,147,790.09 20,892,041,460.30 9.24% Net assets attributable to shareholders of 16,445,855,352.30 15,913,828,778.82 3.34% listed company (RM B) Increase/decrease in Increase/decrease in comparison with Year-begin to end comparison with Current period same period of last of the Period year-begin to year Period-end of last year Operating revenue (RM B) 1,916,020,020.78 0.90% 6,319,464,366.83 -7.88% Net profit attributable to shareholders of 470,100,118.65 -7.89% 1,726,761,695.74 -16.00% the listed company (RMB) Net profit attributable to shareholders of the listed company 426,217,054.93 -5.90% 1,540,311,879.67 -15.91% after deducting non-recurring gains and losses (RMB) Net cash flow arising from operating -- -- 1,238,970,081.24 144.82% activities (RMB) Basic earnings per share (RM B/Share) 0.46 -9.80% 1.71 -16.18% Diluted earnings per share (RM B/Share) 0.46 -9.80% 1.71 -16.18% Weighted average ROE 2.93% -0.48% 10.53% -2.80% Items and amount of extraordinary profit (gains)/losses √Applicable □Not applicable In RM B Amount from year-begin Item Note to end of the Period Gains/losses from the disposal of non-current asset (including the write-off that accrued 4,701,459.14 for impairment of assets) Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to 52,478,894.42 enterprise’s business) 2 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 Gains/losses from entrusted investment or assets management 158,539,790.49 Held transaction financial asset, gains/losses of changes of fair values from transaction financial liabilities, and investment gains from disposal of transaction financial asset, 10,971,801.13 transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company Restoring of receivable impairment provision that tested individually 200,000.00 Other non-operating income and expenditure except for the aforementioned items 1,492,181.99 Less: impact on income tax 34,650,068.09 Impact on minority shareholders’ equity (post-tax) 7,284,243.01 Total 186,449,816.07 -- Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons □ Applicable √ Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. II. State ment of the total shareholders and s hares-held of top ten shareholders at end of the Period 1. Common and preferred stockholders with voting rights recover and the top ten share -holding In Share Total common shareholders at the Total preferred stockholders with voting rights 63,734 0 end of report period recover at the end of report period (if applicable) Top ten shareholders Proportion Amount of Number of share Nature of Amount of Shareholders of shares restricted pledged/frozen shareholder shares held held shares held State of share Amount WUXI INDUSTRY DEVELOPM ENT State-owned 20.22% 204,059,398 GROUP CO., LTD. corporate Foreign ROBERT BOSCH GM BH 14.16% 142,841,400 corporate Hong Kong Securities Clearing Company Foreign Ltd. (HKSCC) 4.60% 46,394,604 corporate BBH BOS S/A FIDELITY FD - CHINA Foreign 1.84% 18,530,315 FOCUS FD corporate 3 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 State-owned Central Huijin Investment Ltd. 1.27% 12,811,200 corporate China Life Insurance - traditional - general Other 1.21% 12,238,898 insurance products - 005L-CT001 Shen China Life Insurance- Bonus -Individual Other 1.14% 11,476,551 bonus - -005L-FH002 Shen Agricultural Bank of China – CIC 500 ETF Other 0.63% 6,371,675 FIDELITY INVMT TRT FIDELITY INTL Foreign 0.61% 6,122,887 SM ALL CAP FUND corporate New China Life Insurance Co., Ltd. - Traditional -Common Insurance Products - Other 0.56% 5,690,585 018L-CT001 Shen Particular about top ten shareholders with un-restrict shares held Amount of un-restrict Type of shares Shareholders common shares held Type Amount WUXI INDUSTRY DEVELOPM ENT GROUP CO., 204,059,398 RM B common shares 204,059,398 LTD. RM B common shares 115,260,600 ROBERT BOSCH GM BH 142,841,400 Domestically listed foreign 27,580,800 shares Hong Kong Securities Clearing Company Ltd. (HKSCC) 46,394,604 RM B common shares 46,394,604 Domestically listed foreign BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 18,530,315 18,530,315 shares Central Huijin Investment Ltd. 12,811,200 RM B common shares 12,811,200 China Life Insurance - traditional - general insurance 12,238,898 RM B common shares 12,238,898 products - 005L-CT001 Shen China Life Insurance- Bonus -Individual bonus - 11,476,551 RM B common shares 11,476,551 -005L-FH002 Shen Agricultural Bank of China – CIC 500 ETF 6,371,675 RM B common shares 6,371,675 FIDELITY INVMT TRT FIDELITY INTL SM ALL Domestically listed foreign 6,122,887 6,122,887 CAP FUND shares New China Life Insurance Co., Ltd. - Traditional 5,690,585 RM B common shares 5,690,585 -Common Insurance Products - 018L-CT001 Shen Among the top ten shareholders, there has no associated relationship Explanation on related relationship or concerted between Wuxi Industry Development Group Co., Ltd. and other action among the abovementioned shareholders shareholders, the first largest shareholder of the Company; and they do not belong to the consistent actionist regulated by the M anagement M easure of 4 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 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. 2. Total of shareholders with preferred stock held and the top ten shareholdings □Applicable √Not applicable 5 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 Section III. Important events I. Particular about major changes from ite ms of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable (I) Changes of items of balance sheet and cause analysis: 1. Notes receivable increased 382.2288 million Yuan at the end of the Period compared with the end of last year with 33.29% up, mainly because endorsement of note receivable declined in the period; 2. Advance payment increased 38.8763 million Yuan at the end of the Period compared with the end of last year with 41.07% up, mainly because advance payment for materials in the period; 3. Other account receivable decreased 29.0839 million Yuan at the end of the Period compared with the end of last year with 34.39% down, mainly because compensation for assets disposal are collected by Weifu Jinning in the period; 4. Other current assets decreased 4583.9966 million Yuan at the end of the Period compared with the end of last year, financial assets available for sale decreased 255.9752 million Yuan at the end of the Period compared with the end of last year, Other equity instrument investment increased 186.94 million Yuan at the end of the Period compared with the end of last year, other non current financial assets increased 768.80 million Yuan at the end of the Period compared with the end of last year, mainly due to the re-classification for new financial instrument standards implemented in the period; 5. Construction in progress increased 128.2331 million Yuan at the end of the Period compared with the end of last year with 77.06% up, mainly because the technical equipment increased; 6. Goodwill increased 53.8073 million Yuan at the end of the Period compared with the end of last year, mainly because in Denmark, wholly-owned subsidiary of the Company purchase 66% equity of Denmark IRD Fuel Cells A/S (hereinafter referred to as IRD), the acquisition cost greater than the book value of net assets on the date of acquisition; 7. Notes payable increased 973.2629 million Yuan at the end of the Period compared with t he end of last year with 95.57% up, mainly because note payable issued to suppliers increased; 8. Accounts payable increased 617.7347 million Yuan at the end of the Period compared with the end of last year with 30.17% up, mainly because the account payable for purchasing increased in the period; 9. Other comprehensive income: according to relevant accounting standards under the new financial instrument are re-classified to “retained profit”. (II) Changes of items of income statement and cause analysis: 1. Financial expenses decreased 36.7203 million Yuan over the same period of last year, mainly because the interest income increased; 6 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 (III) Changes of items of cash flow statement and cause analysis: 1. Net cash flow arising from operation activity increased 732.9 million Yuan over same period last year, mainly because expenses from purchasing declined and the interest income increased; 2. Net cash flow arising from investment activity increased 318.72 million Yuan over same period last year, mainly because received bonus income in the period and income from demolition and disposal; 3. Net cash flow arising from financing activity decreased 131.22 million Yuan over same period last year, mainly because bank loans are declined over same period last year. II. Progress of significant events, their influences, and analysis and explanation of their solutions √ Applicable □Not applicable Parts of the joint-stock enterprise’s equity held by the Company freeze 1. On 6 March 2017, the Company received litigation documents mailed by Shenzhen Intermediate People’s Court of Guangdong Province (hereinafter referred to as Shenzhen Intermediate People’s Court). The documents were concerning about the dispute case that the plaintiff applicant China Cinda Asset Management Co., Ltd. Shenzhen Branch appealed the respondent Weifu High Technology and other seven respondents and the third party Shenzhen Hejun Venture Holding Co., Ltd. (hereinafter referred to as Hejun Company) damaged the interests of corporate creditors, two cases are included in total. After civil ruling as No.(2016)Y03MC2490 and No.(2016) Y03MC2492 from Shenzhen Intermediate People's Court, the assets under the name of above said eight defendants 217 million Yuan in total are being seal up, seized or freeze. Ended as the reporting period, the 4.71 million shares of Miracle Logistics and 11,739,102 shares of SDEC Stock held by the Company has been freeze. The first trial open dated 24 September 2017, and further courts will give until further notice. 2. The Company has applied to the Futian Court for compulsory liquidation of Hejun Company. Futian Court has made a civil ruling ((2017) Yue 0304 QS No. 5) which ruled to execute compulsory liquidation to Hejun Company. The Company will actively cooperate with the court to do the relevant liquidation work and safeguard the legitimate rights and interests of the Company. Overview Disclosure date Query index for interim notice Parts of the joint-stock 2017-03-08 (Notice No. 2017-002) Published on Juchao Website (www.cninfo.com.cn) enterprise’s equity held by the 2017-12-06 (Notice No. 2017-023) Published on Juchao Website (www.cninfo.com.cn) Company freeze Progress of shares buy-back □ Applicable √ Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □ Applicable √ Not applicable 7 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 III. Commitments that the company, shareholde rs, actual controller, offeror, directors, supervisors, senior manage ment or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting pe riod □ Applicable √ Not applicable There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Particular about security investment √ Applicable □Not applicable In RM B Book Changes Curren Profit Account value at in fair Curr Book Variety Short Cumulative t and loss Code of Initial ing the value of ent value at Sourc of form of fair value purcha in the Accountin securitie investme measure beginni the sales the end e of securitie securiti nt cost changes in se Reporti g subject s ment ng of current amo of the stock s es equity amoun ng model the profit unt period t Period period and loss Domesti M easure Tradable c and 199,208, 85,458, 9,351,0 9,961,4 94,809, Own 600841 SDEC d by fair financial foreign 000.00 408.00 72.00 89.20 480.00 funds value assets stocks Domesti M iracle M easure Tradable c and 69,331,5 35,607, 1,130,4 1,398,8 36,738, Own 002009 Logisti d by fair financial foreign 00.00 600.00 00.00 70.00 000.00 funds cs value assets stocks 268,539, 121,066 10,481, 11,360,3 131,547 Total -- 0.00 0.00 0.00 -- -- 500.00 ,008.00 472.00 59.20 ,480.00 Disclosure date of 2012-03-24 securities investment 2013-06-04 approval from the Board V. Trust financing √ Applicable □Not applicable In 10 thousand Yuan Type Capital resources Amount for entrust Balance un-expired Overdue amount Bank financing product Own funds 257,000 250,000 0 Brokerage financing products Own funds 24,000 24,000 0 Trust financing products Own funds 169,774 164,774 0 8 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 Other Own funds 90,495 61,145 0 Total 541,269 499,919 0 Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed: √ Applicable □Not applicable In 10 thousand Yuan Amou Summ nt of ary of Refer reserv Wheth the Actual Wheth Capita ence Antici e for er items Truste Actual collect er has l Criteria annu pated devalu appro and e Source S E gains/l ed entrust Trustee Amou invest for al incom ation ved by relate institut Type of tart nd osses gains/l financ type nt ment fixing rate e (if of legal d ion r funds date date in osses e plan purpos reward of applic withdr proced query name period in in the e retur able) awing ure index period future n (if (Y/N) (if applic applic able) able) Referen April Non-gu Bank ce 23, arantee Collec financi annuali 3.7% 2019 d 350,00 Own 2019- 2020- 6,106. 7,114. ted by Bank Bank al zed -4.55 0Y Y (Anno floatin 0 funds 01-03 03-30 19 23 agree produc yield by % uncem g ment ts agreem ent income ent No.: 2019- Referen Non-gu Collec 010) ce arantee tive Collec annuali 4.3% Broker Broker d Own 2019- 2020- assets ted by 26,000 zed -5.3 635.05 147.69 0Y Y age age floatin funds 05-14 05-13 manag agree yield by % g ement ment agreem income plan ent Referen Non-gu Collec ce arantee Collec tive annuali 4.5% d 173,88 Own 2019- 2021- 14,345 4,616. ted by Trust Trust trust zed -8.7 0Y Y floatin 0 funds 01-17 08-21 .23 05 agree schem yield by % g ment e agreem income ent Non-gu Fund Referen Collec Others Others arantee Own 2019- 2020- produc ce 5%-9 3,612. 4,617. ted by (funds, (funds, 58,000 0Y Y d funds 01-04 10-31 ts with annuali .5% 3 74 agree etc.) etc.) floatin fixed zed ment 9 无锡威孚高科技集团股份有限公司 2019 年第三季度报告正文 g incom yield by income e agreem ent 607,88 24,698 16,495 Total -- -- -- -- -- -- -- 0 -- -- -- 0 .77 .71 Entrust financial expected to be unable to recover the principal or impairment might be occurred □ Applicable √ Not applicable VI. Particulars about de rivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form of receiving research, communication and intervie w in the report period √ Applicable □Not applicable Date M ethod Type of investors Index for the interview and research Form 1 Jan. to 30 The Company answered questions for investors online through the Written inquiry Other Sept. 2019 investor relations interactive platform(http://irm.p5w.net/dqhd/sichuan/) Form 1 Jan. to 30 Telephone Getting the basic information of the Company and market conditions by Other Sept. 2019 communication telephone VIII. External security against the rules □ Applicable √ Not applicable The Company has no external security against the rules in the Period IX. Controlling share holders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company . Board of Directors of Weifu High-Technology Group Co., Ltd. 30 October 2019 10