WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. THE THIRD QUARTERLY REPORT 2019 October 2019 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Section I. Important Notes Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. All directors of the Company are attended the Meeting for quarterly report deliberation. Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Work; Ou Jianbin, Person in Charge of Accounting Organization (Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete. 2 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Section II. Basic information of Company I. Main accounting data and index Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes √No Current period-end Period-end of last year Increase/decrease Total assets (RMB) 22,823,147,790.09 20,892,041,460.30 9.24% Net assets attributable to shareholders 16,445,855,352.30 15,913,828,778.82 3.34% of listed company (RMB) Increase/decrease in Increase/decrease in Year-begin to end comparison with Current period comparison with same of the Period year-begin to period of last year Period-end of last year Operating revenue (RMB) 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 after deducting 426,217,054.93 -5.90% 1,540,311,879.67 -15.91% 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 (RMB/Share) 0.46 -9.80% 1.71 -16.18% Diluted earnings per share (RMB/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 RMB Amount from year-begin Item Note to end of the Period Gains/losses from the disposal of non-current asset (including the write-off that 4,701,459.14 accrued 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 52,478,894.42 to enterprise’s business) Gains/losses from entrusted investment or assets management 158,539,790.49 3 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 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, 10,971,801.13 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. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period 1. Common and preferred stockholders with voting rights recover and the top ten share-holding In Share Total common shareholders at the 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 DEVELOPMENT State-owned 20.22% 204,059,398 GROUP CO., LTD. corporate Foreign ROBERT BOSCH GMBH 14.16% 142,841,400 corporate Hong Kong Securities Clearing Company Foreign 4.60% 46,394,604 Ltd. (HKSCC) corporate BBH BOS S/A FIDELITY FD - CHINA Foreign 1.84% 18,530,315 FOCUS FD corporate 4 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 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 SMALL 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 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 foreign 27,580,800 shares Hong Kong Securities Clearing Company Ltd. (HKSCC) 46,394,604 RMB 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 RMB common shares 12,811,200 China Life Insurance - traditional - general insurance 12,238,898 RMB common shares 12,238,898 products - 005L-CT001 Shen China Life Insurance- Bonus -Individual bonus - 11,476,551 RMB common shares 11,476,551 -005L-FH002 Shen Agricultural Bank of China – CIC 500 ETF 6,371,675 RMB common shares 6,371,675 FIDELITY INVMT TRT FIDELITY INTL SMALL CAP Domestically listed foreign 6,122,887 6,122,887 FUND shares New China Life Insurance Co., Ltd. - Traditional -Common 5,690,585 RMB common shares 5,690,585 Insurance Products - 018L-CT001 Shen Among the top ten shareholders, there has no associated relationship between Wuxi Industry Development Group Co., Ltd. and other Explanation on related relationship or concerted action shareholders, the first largest shareholder of the Company; and they do among the above mentioned shareholders not belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. 5 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 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 6 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Section III. Important events I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons √ Applicable □Not applicable (I) Changes of items of balance sheet and cause analysis: 1. 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 the 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; 7 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 (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 Company freeze 2017-12-06 (Notice No. 2017-023) Published on Juchao Website (www.cninfo.com.cn) Progress of shares buy-back □ Applicable √ Not applicable Implementation progress of the reduction of repurchases shares by centralized bidding □ Applicable √ Not applicable III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period 8 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 □ 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 RMB Book Changes Profit Account value at in fair Curr Book Variety Short Cumulativ and loss Code of Initial ing the value of Current ent value at Sourc of form of e fair value in the Accountin securiti investme measure beginni the purchase sales the end e of securitie securiti nt cost changes in Reporti g subject es ment ng of current amount amo of the stock s es equity ng model the profit unt period Period period and loss Domesti Measure 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 Miracle Measure 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 approval from the Board 2013-06-04 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 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: 9 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 √ Applicable □Not applicable In 10 thousand Yuan Amou Summ nt of ary of reserv Wheth the Actual Wheth Capita Antici e for er items Truste Refere Actual collect er has l Criteri pated devalu appro and e Trus Source St E nce gains/l ed entrust Amou invest a for incom ation ved by relate institut tee Type of art nd annual osses gains/l financ nt ment fixing e (if of legal d ion r type funds date date rate of in osses e plan purpos reward applic withdr proced query name return period in in the e able) awing ure index period future (if (Y/N) (if applic applic able) able) Refere April nce 23, Bank Non-guar annual Collec 2019 financi Ban anteed 350,00 Own 2019-0 2020- ized 3.7%- 6,106. 7,114. ted by (Anno Bank al 0Y Y k floating 0 funds 1-03 03-30 yield 4.55% 19 23 agree uncem produc income by ment ent ts agree No.: ment 2019- Refere 010) Collec nce Non-guar tive annual Collec Brok Broker anteed Own 2019-0 2020- assets ized 4.3%- ted by erag 26,000 635.05 147.69 0Y Y age floating funds 5-14 05-13 manag yield 5.3% agree e income ement by ment plan agree ment Refere nce Collec Non-guar annual Collec tive Trus anteed 173,88 Own 2019-0 2021- ized 4.5%- 14,345 4,616. ted by Trust trust 0Y Y t floating 0 funds 1-17 08-21 yield 8.7% .23 05 agree schem income by ment e agree ment Othe Fund Refere Non-guar Collec Others rs produc nce anteed Own 2019-0 2020- 5%-9. 3,612. 4,617. ted by (funds, (fun 58,000 ts with annual 0Y Y floating funds 1-04 10-31 5% 3 74 agree etc.) ds, fixed ized income ment etc.) incom yield 10 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 e by agree ment 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 derivatives investment □ Applicable √ Not applicable The Company had no derivatives investment in Period. VII. Registration form of receiving research, communication and interview in the report period √ Applicable □Not applicable Date Method 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 shareholders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company. 11 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by Weifu High-Technology Group Co., Ltd. 2019-09-30 In RMB Item 2019-9-30 2018-12-31 Current assets: Monetary funds 2,738,298,511.58 2,616,321,740.73 Settlement provisions Capital lent Tradable financial assets 4,409,755,079.43 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 1,530,336,351.26 1,148,107,603.68 Account receivable 2,209,911,329.35 1,919,793,266.91 Receivable financing Accounts paid in advance 133,527,735.27 94,651,431.31 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 55,498,326.16 84,582,246.16 Including: Interest receivable 95,062.50 1,842,437.50 Dividend receivable Buying back the sale of financial assets Inventories 1,715,743,285.73 1,438,528,714.59 Contractual assets Assets held for sale Non-current asset due within one year Other current assets 48,140,980.04 4,632,137,600.26 12 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Total current assets 12,841,211,598.82 11,934,122,603.64 Non-current assets: Loans and payments on behalf Debt investment Finance asset available for sales 255,975,176.91 Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment 5,123,468,311.43 4,976,773,946.74 Investment in other equity instrument 186,940,000.00 Other non-current financial assets 768,800,000.00 Investment real estate 20,745,091.24 21,906,134.52 Fixed assets 2,709,714,235.51 2,707,374,678.61 Construction in progress 294,647,637.63 166,414,542.18 Productive biological asset Oil and gas asset Right-of-use assets Intangible assets 324,663,804.16 324,892,822.75 Expense on Research and Development Goodwill 55,591,347.00 1,784,086.79 Long-term expenses to be apportioned 18,142,695.08 16,637,652.31 Deferred income tax asset 210,723,234.29 234,697,139.58 Other non-current asset 268,499,834.93 251,462,676.27 Total non-current asset 9,981,936,191.27 8,957,918,856.66 Total assets 22,823,147,790.09 20,892,041,460.30 Current liabilities: Short-term loans 335,178,090.67 298,928,213.94 Loan from central bank Capital borrowed Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability 490,329.13 Note payable 1,991,630,397.80 1,018,367,533.74 13 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Account payable 2,665,071,495.37 2,047,336,834.66 Accounts received in advance 51,488,432.44 41,329,857.80 Contractual liability Selling financial asset of repurchase Absorbing deposit and inter-bank deposit Security trading of agency Security sales of agency Wage payable 265,041,962.07 312,113,178.24 Taxes payable 41,002,404.48 74,271,613.92 Other account payable 51,141,250.70 64,448,723.52 Including: Interest payable 643,733.42 517,469.08 Dividend payable Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities due within one year 15,000,000.00 Other current liabilities Total current liabilities 5,400,554,033.53 3,872,286,284.95 Non-current liabilities: Insurance contract reserve Long-term loans 30,000,000.00 Bonds payable Including: Preferred stock Perpetual capital securities Lease liability Long-term account payable 35,083,263.11 35,422,354.11 Long-term wages payable 74,679,175.36 74,679,175.36 Accrual liability Deferred income 419,514,861.51 425,769,854.13 Deferred income tax liabilities 3,401,690.48 1,912,744.40 Other non-current liabilities Total non-current liabilities 532,678,990.46 567,784,128.00 Total liabilities 5,933,233,023.99 4,440,070,412.95 Owner’s equity: 14 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 3,391,604,168.84 3,416,022,795.14 Less: Inventory shares Other comprehensive income 3,116,678.13 -19,809,442.95 Reasonable reserve 2,778,305.97 1,618,490.50 Surplus public reserve 510,100,496.00 510,100,496.00 Provision of general risk Retained profit 11,529,305,133.36 10,996,945,870.13 Total owner’ s equity attributable to parent company 16,445,855,352.30 15,913,828,778.82 Minority interests 444,059,413.80 538,142,268.53 Total owner’ s equity 16,889,914,766.10 16,451,971,047.35 Total liabilities and owner’ s equity 22,823,147,790.09 20,892,041,460.30 Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 2. Balance Sheet of Parent Company In RMB Item 2019-9-30 2018-12-31 Current assets: Monetary funds 1,865,296,561.13 1,922,408,227.00 Tradable financial assets 4,149,755,079.43 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 203,336,197.42 264,264,207.30 Account receivable 667,004,047.32 742,246,990.99 Receivable financing Accounts paid in advance 76,539,287.27 59,028,927.25 Other account receivable 250,660,019.92 196,849,092.13 Including: Interest receivable 30,570.83 188,682.78 15 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Dividend receivable Inventories 438,535,813.80 492,054,274.67 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 13,893,534.65 4,576,688,553.49 Total current assets 7,665,020,540.94 8,253,540,272.83 Non-current assets: Debt investment Available-for-sale financial assets 180,035,176.91 Other debt investment Held-to-maturity investments Long-term receivables Long-term equity investments 6,082,862,441.22 5,739,110,426.55 Investment in other equity instrument 111,000,000.00 Other non-current financial assets 768,800,000.00 Investment real estate Fixed assets 1,537,795,177.08 1,534,109,106.80 Construction in progress 173,740,910.69 78,673,300.59 Productive biological assets Oil and natural gas assets Right-of-use assets Intangible assets 190,792,864.13 188,101,655.94 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets 115,841,961.43 140,286,756.70 Other non-current assets 198,566,530.82 184,208,090.40 Total non-current assets 9,179,399,885.37 8,044,524,513.89 Total assets 16,844,420,426.31 16,298,064,786.72 Current liabilities: Short-term borrowings 135,500,000.00 112,000,000.00 Tradable financial liability Financial liability measured by fair value and with 16 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 variation reckoned into current gains/losses Derivative financial liability Notes payable 362,507,852.24 330,545,052.37 Account payable 819,454,424.49 823,693,469.51 Accounts received in advance 4,195,085.18 6,639,554.63 Contractual liability Wage payable 174,862,754.24 200,205,508.25 Taxes payable 24,058,340.08 39,193,425.15 Other accounts payable 39,713,975.00 12,142,596.68 Including: Interest payable 283,127.78 149,966.66 Dividend payable Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 1,560,292,431.23 1,524,419,606.59 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Lease liability Long-term account payable Long term employee compensation payable 63,962,762.93 63,962,762.93 Accrued liabilities Deferred income 368,548,829.05 381,609,056.40 Deferred income tax liabilities 1,572,220.80 Other non-current liabilities Total non-current liabilities 434,083,812.78 445,571,819.33 Total liabilities 1,994,376,244.01 1,969,991,425.92 Owners’ equity: Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities 17 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Capital public reserve 3,488,221,286.39 3,488,221,286.39 Less: Inventory shares Other comprehensive income -19,809,442.95 Special reserve Surplus reserve 510,100,496.00 510,100,496.00 Retained profit 9,842,771,829.91 9,340,610,451.36 Total owner’s equity 14,850,044,182.30 14,328,073,360.80 Total liabilities and owner’s equity 16,844,420,426.31 16,298,064,786.72 3. Consolidated Profit Statement (the period) In RMB Item Current Period Last Period I. Total operating income 1,916,020,020.78 1,898,914,219.62 Including: Operating income 1,916,020,020.78 1,898,914,219.62 Interest income Insurance gained Commission charge and commission income II. Total operating cost 1,798,254,914.36 1,794,520,230.39 Including: Operating cost 1,547,533,563.20 1,500,174,561.45 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve Bonus expense of guarantee slip Reinsurance expense Tax and extras 10,679,124.43 12,088,931.79 Sales expense 62,375,586.60 51,306,210.48 Administrative expense 106,951,424.44 149,721,042.18 R&D expense 88,447,560.87 89,957,375.50 Financial expense -17,732,345.18 -8,727,891.01 Including: Interest expenses 4,119,051.19 3,519,363.80 Interest income 16,205,153.85 11,924,507.72 Add: other income 8,299,567.47 11,432,760.47 18 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Investment income (Loss is listed with “-”) 400,210,218.92 432,468,507.12 Including: Investment income on affiliated company and 330,720,999.96 370,057,450.82 joint venture The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) -19,714,476.00 Loss of credit impairment (Loss is listed with “-”) -6,818,584.59 Losses of devaluation of asset (Loss is listed with “-”) -3,909,288.35 Income from assets disposal (Loss is listed with “-”) 68,162.17 -783,051.95 III. Operating profit (Loss is listed with “-”) 499,809,994.39 543,602,916.52 Add: Non-operating income 658,015.10 2,062,006.74 Less: Non-operating expense 675,444.41 6,368,628.96 IV. Total profit (Loss is listed with “-”) 499,792,565.08 539,296,294.30 Less: Income tax expense 23,979,285.80 21,775,897.49 V. Net profit (Net loss is listed with “-”) 475,813,279.28 517,520,396.81 (i) Classify by business continuity 1.continuous operating net profit (net loss listed with ‘-”) 475,813,279.28 517,520,396.81 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s of parent company 470,100,118.65 510,387,493.91 2.Minority shareholders’ gains and losses 5,713,160.63 7,132,902.90 VI. Net after-tax of other comprehensive income 4,106,858.43 -26,099,780.40 Net after-tax of other comprehensive income attributable to 2,855,086.59 -26,099,780.40 owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be 2,855,086.59 -26,099,780.40 19 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale -26,099,780.40 financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign 2,855,086.59 currency financial statements 9.Other Net after-tax of other comprehensive income attributable to 1,251,771.84 minority shareholders VII. Total comprehensive income 479,920,137.71 491,420,616.41 Total comprehensive income attributable to owners of parent 472,955,205.24 484,287,713.51 Company Total comprehensive income attributable to minority 6,964,932.47 7,132,902.90 shareholders VIII. Earnings per share: (i) Basic earnings per share 0.46 0.51 (ii) Diluted earnings per share 0.46 0.51 As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0 Yuan achieved last period Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 4. Profit Statement of Parent Company (the period) In RMB Item Current Period Last Period I. Operating income 828,982,172.49 848,388,482.53 Less: Operating cost 653,400,959.95 621,196,194.58 Taxes and surcharge 6,802,609.00 6,354,222.41 20 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Sales expenses 8,778,996.50 8,715,558.72 Administration expenses 46,561,420.48 99,355,100.44 R&D expenses 38,285,533.62 39,239,700.36 Financial expenses -23,174,856.95 -10,370,818.41 Including: interest expenses 1,360,727.13 1,939,344.45 Interest income 18,048,180.81 10,645,854.58 Add: other income 5,957,952.88 9,993,445.81 Investment income (Loss is listed with “-”) 484,352,775.90 405,801,333.02 Including: Investment income on affiliated Company 316,194,045.81 347,419,208.23 and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value (Loss is listed with “-”) -19,714,476.00 Loss of credit impairment (Loss is listed with “-”) -240,584.40 Losses of devaluation of asset (Loss is listed with “-”) -314,165.39 Income on disposal of assets (Loss is listed with “-”) 49,380.96 58,612.89 II. Operating profit (Loss is listed with “-”) 568,732,559.23 499,437,750.76 Add: Non-operating income 11,730.00 2,907.94 Less: Non-operating expense 250,034.98 6,157,201.14 III. Total Profit (Loss is listed with “-”) 568,494,254.25 493,283,457.56 Less: Income tax 20,714,710.20 18,406,615.68 IV. Net profit (Net loss is listed with “-”) 547,779,544.05 474,876,841.88 (i)continuous operating net profit (net loss listed with ‘-”) 547,779,544.05 474,876,841.88 (ii) termination of net profit (net loss listed with ‘-”) V. Net after-tax of other comprehensive income -26,099,780.40 (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (II) Other comprehensive income items which will be -26,099,780.40 21 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale -26,099,780.40 financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other VI. Total comprehensive income 547,779,544.05 448,777,061.48 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 5. Consolidated Profit Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Total operating income 6,319,464,366.83 6,859,716,110.61 Including: Operating income 6,319,464,366.83 6,859,716,110.61 Interest income Insurance gained Commission charge and commission income II. Total operating cost 5,804,031,464.87 6,240,664,902.74 Including: Operating cost 4,952,920,067.64 5,389,764,851.14 Interest expense Commission charge and commission expense Cash surrender value Net amount of expense of compensation Net amount of withdrawal of insurance contract reserve 22 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Bonus expense of guarantee slip Reinsurance expense Tax and extras 45,213,696.09 50,089,284.19 Sales expense 166,646,234.00 157,653,770.33 Administrative expense 417,861,404.87 386,260,452.81 R&D expense 268,615,203.03 267,401,343.65 Financial expense -47,225,140.76 -10,504,799.38 Including: Interest expenses 13,383,699.61 12,595,318.85 Interest income 64,622,073.68 23,608,605.34 Add: other income 25,931,685.42 25,465,220.18 Investment income (Loss is listed with “-”) 1,288,426,899.40 1,581,501,675.51 Including: Investment income on affiliated company and 1,121,186,131.01 1,338,697,596.73 joint venture The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) 10,971,801.13 Loss of credit impairment (Loss is listed with “-”) -13,056,375.34 Losses of devaluation of asset (Loss is listed with “-”) -1,500,885.27 -3,899,200.97 Income from assets disposal (Loss is listed with “-”) 5,176,010.62 805,133.41 III. Operating profit (Loss is listed with “-”) 1,831,382,037.92 2,222,924,036.00 Add: Non-operating income 28,202,772.36 5,943,135.61 Less: Non-operating expense 3,306,897.43 8,696,501.34 IV. Total profit (Loss is listed with “-”) 1,856,277,912.85 2,220,170,670.27 Less: Income tax expense 105,361,940.34 124,703,195.45 V. Net profit (Net loss is listed with “-”) 1,750,915,972.51 2,095,467,474.82 (i) Classify by business continuity 1.continuous operating net profit (net loss listed with ‘-”) 1,750,915,972.51 2,095,467,474.82 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s of parent company 1,726,761,695.74 2,055,630,198.83 2.Minority shareholders’ gains and losses 24,154,276.77 39,837,275.99 VI. Net after-tax of other comprehensive income 4,378,395.63 -84,402,360.75 Net after-tax of other comprehensive income attributable to 3,116,678.13 -84,402,360.75 23 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 owners of parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (ii) Other comprehensive income items which will be 3,116,678.13 -84,402,360.75 reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale -84,402,360.75 financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign 3,116,678.13 currency financial statements 9.Other Net after-tax of other comprehensive income attributable to 1,261,717.50 minority shareholders VII. Total comprehensive income 1,755,294,368.14 2,011,065,114.07 Total comprehensive income attributable to owners of parent 1,729,878,373.87 1,971,227,838.08 Company Total comprehensive income attributable to minority 25,415,994.27 39,837,275.99 shareholders VIII. Earnings per share: (i) Basic earnings per share 1.71 2.04 (ii) Diluted earnings per share 1.71 2.04 As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0 Yuan achieved last period 24 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 6. Profit Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Operating income 2,921,456,632.73 3,163,531,137.66 Less: Operating cost 2,125,372,474.65 2,319,712,717.48 Taxes and surcharge 24,313,512.97 27,115,075.05 Sales expenses 24,099,338.93 25,746,366.68 Administration expenses 257,561,447.82 245,339,078.79 R&D expenses 114,159,344.52 109,515,485.12 Financial expenses -64,267,045.54 -15,700,898.36 Including: interest expenses 4,958,091.05 5,529,002.77 Interest income 62,790,598.05 19,693,248.44 Add: other income 17,641,177.18 21,807,229.20 Investment income (Loss is listed with “-”) 1,324,568,137.56 1,543,151,562.04 Including: Investment income on affiliated Company 1,058,657,858.04 1,242,207,334.77 and joint venture The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Changing income of fair value (Loss is listed with “-”) 10,481,472.00 Loss of credit impairment (Loss is listed with “-”) -2,141,962.10 Losses of devaluation of asset (Loss is listed with “-”) -24,294.39 -782,787.78 Income on disposal of assets (Loss is listed with “-”) 1,893,432.44 757,456.62 II. Operating profit (Loss is listed with “-”) 1,792,635,522.07 2,016,736,772.98 Add: Non-operating income 26,764.36 29,458.29 Less: Non-operating expense 1,446,287.89 7,147,094.09 III. Total Profit (Loss is listed with “-”) 1,791,215,998.54 2,009,619,137.18 Less: Income tax 94,652,187.48 101,251,244.84 IV. Net profit (Net loss is listed with “-”) 1,696,563,811.06 1,908,367,892.34 (i)continuous operating net profit (net loss listed with ‘-”) 1,696,563,811.06 1,908,367,892.34 (ii) termination of net profit (net loss listed with ‘-”) 25 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 V. Net after-tax of other comprehensive income -84,402,360.75 (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1.Changes of the defined benefit plans that re-measured 2.Other comprehensive income under equity method that cannot be transfer to gain/loss 3.Change of fair value of investment in other equity instrument 4.Fair value change of enterprise's credit risk 5. Other (II) Other comprehensive income items which will be -84,402,360.75 reclassified subsequently to profit or loss 1.Other comprehensive income under equity method that can transfer to gain/loss 2.Change of fair value of other debt investment 3.gain/loss of fair value changes for available-for-sale -84,402,360.75 financial assets 4.Amount of financial assets re-classify to other comprehensive income 5.Gain/loss of held-to-maturity investments that re-classify to available-for-sale financial asset 6.Credit impairment provision for other debt investment 7.Cash flow hedging reserve 8.Translation differences arising on translation of foreign currency financial statements 9.Other VI. Total comprehensive income 1,696,563,811.06 1,823,965,531.59 VII. Earnings per share: (i) Basic earnings per share (ii) Diluted earnings per share 26 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 7. Consolidated Cash Flow Statement (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing 6,469,994,384.05 6,420,868,275.01 labor services Net increase of customer deposit and inter-bank deposit Net increase of loan from central bank Net increase of capital borrowed from other financial institution Cash received from original insurance contract fee Net cash received from reinsurance business Net increase of insured savings and investment Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Net cash received by agents in sale and purchase of securities Write-back of tax received 41,580,951.27 48,634,147.48 Other cash received concerning operating activities 110,778,197.88 36,744,426.26 Subtotal of cash inflow arising from operating activities 6,622,353,533.20 6,506,246,848.75 Cash paid for purchasing commodities and receiving 3,817,334,081.37 4,238,426,941.42 labor service Net increase of customer loans and advances Net increase of deposits in central bank and inter-bank Cash paid for original insurance contract compensation Net increase of capital lent Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers 940,247,241.06 986,066,952.04 Taxes paid 390,676,910.12 470,637,881.75 Other cash paid concerning operating activities 235,125,219.41 305,045,263.08 Subtotal of cash outflow arising from operating activities 5,383,383,451.96 6,000,177,038.29 27 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Net cash flows arising from operating activities 1,238,970,081.24 506,069,810.46 II. Cash flows arising from investing activities: Cash received from recovering investment 5,894,803,412.42 7,714,706,837.03 Cash received from investment income 1,131,495,657.28 1,134,719,735.92 Net cash received from disposal of fixed, intangible and 72,646,662.26 40,310,372.43 other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 7,098,945,731.96 8,889,736,945.38 Cash paid for purchasing fixed, intangible and other 358,576,210.84 455,493,121.66 long-term assets Cash paid for investment 6,387,322,000.00 8,463,843,284.96 Net increase of mortgaged loans Net cash received from subsidiaries and other units 49,930,736.62 obtained Other cash paid concerning investing activities 24,000,000.00 10,000,000.00 Subtotal of cash outflow from investing activities 6,819,828,947.46 8,929,336,406.62 Net cash flows arising from investing activities 279,116,784.50 -39,599,461.24 III. Cash flows arising from financing activities Cash received from absorbing investment 13,880,037.60 Including: Cash received from absorbing minority 13,880,037.60 shareholders’ investment by subsidiaries Cash received from loans 476,760,078.03 372,755,051.21 Other cash received concerning financing activities 5,470,000.00 Subtotal of cash inflow from financing activities 490,640,115.63 378,225,051.21 Cash paid for settling debts 485,510,201.30 273,000,000.00 Cash paid for dividend and profit distributing or interest 1,249,718,662.01 1,224,060,591.43 paying Including: Dividend and profit of minority shareholder 26,271,705.11 174,600.00 paid by subsidiaries Other cash paid concerning financing activities 5,809,091.00 339,091.00 Subtotal of cash outflow from financing activities 1,741,037,954.31 1,497,399,682.43 Net cash flows arising from financing activities -1,250,397,838.68 -1,119,174,631.22 IV. Influence on cash and cash equivalents due to fluctuation -6,845,918.83 4,550,314.63 in exchange rate 28 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 V. Net increase of cash and cash equivalents 260,843,108.23 -648,153,967.37 Add: Balance of cash and cash equivalents at the period 2,404,674,139.49 2,948,439,354.22 -begin VI. Balance of cash and cash equivalents at the period -end 2,665,517,247.72 2,300,285,386.85 8. Cash Flow Statement of Parent Company (form the year-begin to the period-end) In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing 3,287,576,153.27 3,839,689,306.03 labor services Write-back of tax received Other cash received concerning operating activities 67,213,435.93 19,693,248.44 Subtotal of cash inflow arising from operating activities 3,354,789,589.20 3,859,382,554.47 Cash paid for purchasing commodities and receiving 1,847,985,017.74 2,396,479,395.04 labor service Cash paid to/for staff and workers 502,010,559.74 527,189,432.25 Taxes paid 245,672,049.82 327,029,152.13 Other cash paid concerning operating activities 116,624,299.79 220,686,532.94 Subtotal of cash outflow arising from operating activities 2,712,291,927.09 3,471,384,512.36 Net cash flows arising from operating activities 642,497,662.11 387,998,042.11 II. Cash flows arising from investing activities: Cash received from recovering investment 5,389,803,412.42 7,450,776,671.49 Cash received from investment income 1,192,272,663.55 1,103,693,650.17 Net cash received from disposal of fixed, intangible and 4,206,404.75 38,606,710.25 other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities 226,818,698.47 75,274,713.09 Subtotal of cash inflow from investing activities 6,813,101,179.19 8,668,351,745.00 Cash paid for purchasing fixed, intangible and other 227,211,753.37 209,627,425.25 long-term assets Cash paid for investment 5,753,942,000.00 7,957,713,200.00 Net cash received from subsidiaries and other units 82,156,428.71 obtained Other cash paid concerning investing activities 259,380,372.33 179,000,000.00 29 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Subtotal of cash outflow from investing activities 6,322,690,554.41 8,346,340,625.25 Net cash flows arising from investing activities 490,410,624.78 322,011,119.75 III. Cash flows arising from financing activities: Cash received from absorbing investment Cash received from loans 231,500,000.00 180,000,000.00 Other cash received concerning financing activities Subtotal of cash inflow from financing activities 231,500,000.00 180,000,000.00 Cash paid for settling debts 208,000,000.00 78,000,000.00 Cash paid for dividend and profit distributing or interest 1,215,565,613.93 1,216,155,809.00 paying Other cash paid concerning financing activities Subtotal of cash outflow from financing activities 1,423,565,613.93 1,294,155,809.00 Net cash flows arising from financing activities -1,192,065,613.93 -1,114,155,809.00 IV. Influence on cash and cash equivalents due to fluctuation -6,064,069.05 3,695,159.21 in exchange rate V. Net increase of cash and cash equivalents -65,221,396.09 -400,451,487.93 Add: Balance of cash and cash equivalents at the period 1,920,076,358.43 2,454,696,969.20 -begin VI. Balance of cash and cash equivalents at the period -end 1,854,854,962.34 2,054,245,481.27 30 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 II. Financial statement adjustment 1. Relevant items of the financial statement at beginning of the year when implementing the new financial instrument standards, new revenue standards or new leasing standards since 2019 √ Applicable □ Not applicable Consolidated Balance Sheet In RMB Item 2018-12-31 2019-01-01 Adjustment Current assets: Monetary funds 2,616,321,740.73 2,616,321,740.73 Settlement provisions Capital lent Tradable financial assets 4,740,773,607.43 4,740,773,607.43 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 1,148,107,603.68 1,148,107,603.68 Account receivable 1,919,793,266.91 1,919,793,266.91 Receivable financing Accounts paid in advance 94,651,431.31 94,651,431.31 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 84,582,246.16 84,582,246.16 Including: Interest receivable 1,842,437.50 1,842,437.50 Dividend receivable Buying back the sale of financial assets Inventories 1,438,528,714.59 1,438,528,714.59 Contractual assets Assets held for sale Non-current asset due within one year Other current assets 4,632,137,600.26 60,250,896.83 -4,571,886,703.43 Total current assets 11,934,122,603.64 12,103,009,507.64 168,886,904.00 Non-current assets: Loans and payments on behalf 31 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Debt investment Finance asset available for sales 255,975,176.91 -255,975,176.91 Other debt investment Held-to-maturity investment Long-term account receivable Long-term equity investment 4,976,773,946.74 4,976,773,946.74 Investment in other equity instrument 87,088,272.91 87,088,272.91 Other non-current financial assets Investment real estate 21,906,134.52 21,906,134.52 Fixed assets 2,707,374,678.61 2,707,374,678.61 Construction in progress 166,414,542.18 166,414,542.18 Productive biological asset Oil and gas asset Right-of-use assets Intangible assets 324,892,822.75 324,892,822.75 Expense on Research and Development Goodwill 1,784,086.79 1,784,086.79 Long-term expenses to be apportioned 16,637,652.31 16,637,652.31 Deferred income tax asset 234,697,139.58 234,697,139.58 Other non-current asset 251,462,676.27 251,462,676.27 Total non-current asset 8,957,918,856.66 8,789,031,952.66 -168,886,904.00 Total assets 20,892,041,460.30 20,892,041,460.30 Current liabilities: Short-term loans 298,928,213.94 298,928,213.94 Loan from central bank Capital borrowed Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability 490,329.13 490,329.13 Note payable 1,018,367,533.74 1,018,367,533.74 Account payable 2,047,336,834.66 2,047,336,834.66 Accounts received in advance 41,329,857.80 41,329,857.80 Contractual liability 32 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Selling financial asset of repurchase Absorbing deposit and inter-bank deposit Security trading of agency Security sales of agency Wage payable 312,113,178.24 312,113,178.24 Taxes payable 74,271,613.92 74,271,613.92 Other account payable 64,448,723.52 64,448,723.52 Including: Interest payable 517,469.08 517,469.08 Dividend payable Commission charge and commission payable Reinsurance payable Liability held for sale Non-current liabilities due within one year 15,000,000.00 15,000,000.00 Other current liabilities Total current liabilities 3,872,286,284.95 3,872,286,284.95 Non-current liabilities: Insurance contract reserve Long-term loans 30,000,000.00 30,000,000.00 Bonds payable Including: Preferred stock Perpetual capital securities Lease liability Long-term account payable 35,422,354.11 35,422,354.11 Long-term wages payable 74,679,175.36 74,679,175.36 Accrual liability Deferred income 425,769,854.13 425,769,854.13 Deferred income tax liabilities 1,912,744.40 1,912,744.40 Other non-current liabilities Total non-current liabilities 567,784,128.00 567,784,128.00 Total liabilities 4,440,070,412.95 4,440,070,412.95 Owner’s equity: Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: Preferred stock 33 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Perpetual capital securities Capital public reserve 3,416,022,795.14 3,416,022,795.14 Less: Inventory shares Other comprehensive income -19,809,442.95 19,809,442.95 Reasonable reserve 1,618,490.50 1,618,490.50 Surplus public reserve 510,100,496.00 510,100,496.00 Provision of general risk Retained profit 10,996,945,870.13 10,977,136,427.18 -19,809,442.95 Total owner’ s equity attributable to parent 15,913,828,778.82 15,913,828,778.82 company Minority interests 538,142,268.53 538,142,268.53 Total owner’ s equity 16,451,971,047.35 16,451,971,047.35 Total liabilities and owner’ s equity 20,892,041,460.30 20,892,041,460.30 Explanation: In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets , Accounting Standards for Business Enterprises No. 24 - Hedge Accounting, and the Accounting Standards for Business Enterprises No. 37 – Financial Instruments Presentation, and the domestic listed companies are required to put the relevant accounting standards of new financial instruments into force from January 1, 2019. The Company implements the above mentioned four accounting standards since 1 Jan. 2019 (1) New item of “Tradable financial assets” increased, parts of the former “Other current assets” and “Financial assets available for sale” are being re-classified; (2) New item of “Other equity instrument investment” increased, part of the former “Financial assets available for sale” is re-classified; (3) The “Other comprehensive income” re-classified to “Retained profit”. 34 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Balance Sheet of Parent Company In RMB Item 2018-12-31 2019-01-01 Adjustment Current assets: Monetary funds 1,922,408,227.00 1,922,408,227.00 Tradable financial assets 4,740,773,607.43 4,740,773,607.43 Financial assets measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Note receivable 264,264,207.30 264,264,207.30 Account receivable 742,246,990.99 742,246,990.99 Receivable financing Accounts paid in advance 59,028,927.25 59,028,927.25 Other account receivable 196,849,092.13 196,849,092.13 Including: Interest receivable 188,682.78 188,682.78 Dividend receivable Inventories 492,054,274.67 492,054,274.67 Contractual assets Assets held for sale Non-current assets maturing within one year Other current assets 4,576,688,553.49 4,801,850.06 -4,571,886,703.43 Total current assets 8,253,540,272.83 8,422,427,176.83 168,886,904.00 Non-current assets: Debt investment Available-for-sale financial assets 180,035,176.91 -180,035,176.91 Other debt investment Held-to-maturity investments Long-term receivables Long-term equity investments 5,739,110,426.55 5,739,110,426.55 Investment in other equity instrument 11,148,272.91 11,148,272.91 Other non-current financial assets Investment real estate Fixed assets 1,534,109,106.80 1,534,109,106.80 Construction in progress 78,673,300.59 78,673,300.59 Productive biological assets 35 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Oil and natural gas assets Right-of-use assets Intangible assets 188,101,655.94 188,101,655.94 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets 140,286,756.70 140,286,756.70 Other non-current assets 184,208,090.40 184,208,090.40 Total non-current assets 8,044,524,513.89 7,875,637,609.89 -168,886,904.00 Total assets 16,298,064,786.72 16,298,064,786.72 Current liabilities: Short-term borrowings 112,000,000.00 112,000,000.00 Tradable financial liability Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable 330,545,052.37 330,545,052.37 Account payable 823,693,469.51 823,693,469.51 Accounts received in advance 6,639,554.63 6,639,554.63 Contractual liability Wage payable 200,205,508.25 200,205,508.25 Taxes payable 39,193,425.15 39,193,425.15 Other accounts payable 12,142,596.68 12,142,596.68 Including: Interest payable 149,966.66 149,966.66 Dividend payable Liability held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 1,524,419,606.59 1,524,419,606.59 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities 36 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 Lease liability Long-term account payable Long term employee compensation payable 63,962,762.93 63,962,762.93 Accrued liabilities Deferred income 381,609,056.40 381,609,056.40 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 445,571,819.33 445,571,819.33 Total liabilities 1,969,991,425.92 1,969,991,425.92 Owners’ equity: Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 3,488,221,286.39 3,488,221,286.39 Less: Inventory shares Other comprehensive income -19,809,442.95 19,809,442.95 Special reserve Surplus reserve 510,100,496.00 510,100,496.00 Retained profit 9,340,610,451.36 9,320,801,008.41 -19,809,442.95 Total owner’s equity 14,328,073,360.80 14,328,073,360.80 Total liabilities and owner’s equity 16,298,064,786.72 16,298,064,786.72 Explanation: In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets , Accounting Standards for Business Enterprises No. 24 - Hedge Accounting, and the Accounting Standards for Business Enterprises No. 37 – Financial Instruments Presentation, and the domestic listed companies are required to put the relevant accounting standards of new financial instruments into force from January 1, 2019. The Company implements the above mentioned four accounting standards since 1 Jan. 2019 (1) New item of “Tradable financial assets” increased, parts of the former “Other current assets” and “Financial assets available for sale” are being re-classified; (1) New item of “Other equity instrument investment” increased, part of the former “Financial assets available for sale” is re-classified; (2) The “Other comprehensive income” re-classified to “Retained profit”. 37 无锡威孚高科技集团股份有限公司 2019 年第三季度报告全文 2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new financial instrument standards or new leasing standards since 2019 □ Applicable √ Not applicable III. Audit report Whether the 3rd quarterly report has been audited or not □Yes √ No The 3rd quarterly report of the Company has not been audited. Board of Directors of Weifu High-Technology Group Co., Ltd. Chairman: Chen Xuejun 30 October 2019 38