无锡威孚高科技集团股份有限公司 2020 年半年度报告摘要 Stock Code: 000581, 200581 Public Notice No: 2020-041 Short Form of the Stock: WFHT, Su Weifu-B Weifu High-Technology Group Co., Ltd. Summary of Semi-Annual Report 2020 I. Important Notice The summary is abstract from full-text of semi-annual report, for more details of operating results, financial condition and future development plan of the Company; investors should found in the full-text that published on media appointed by CSRC. Whole directors of the Company attend the Board Meeting for report deliberation. Prompt of non-standard audit opinion □ Applicable √ Not applicable Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period □ Applicable √ Not applicable There is no plan of cash bonus, dividend distribution and capitalizing of common reserves carried out by the Company Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period □ Applicable √ Not applicable II. Company profile 1. Company Profile Short form of the stock WFHT, Su Weifu-B Stock code 000581, 200581 Stock exchange for listing Shenzhen Stock Exchange Person/Way to contact Secretary of the Board Rep. of security affairs Name Zhou Weixing Yan Guohong Office add. No.5, Huashan Road, Xinwu District, Wuxi City No.5, Huashan Road, Xinwu District, Wuxi City Tel. 0510-80505999 0510-80505999 E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn 2. Main financial data and indexes Whether it has retroactive adjustment or re-statement on previous accounting data □Yes √ No Current period Same period of last year Changes over last year Operating income (RMB) 6,594,403,624.56 4,403,444,346.05 49.76% Net profit attributable to shareholders of the 1,326,344,424.98 1,256,661,577.09 5.55% listed company (RMB) 1 无锡威孚高科技集团股份有限公司 2020 年半年度报告摘要 Net profit attributable to shareholders of the listed company after deducting non-recurring 1,175,574,728.86 1,114,094,824.74 5.52% gains and losses (RMB) Net cash flow arising from operating 437,657,072.41 690,323,908.25 -36.60% activities (RMB) Basic earnings per share (RMB/Share) 1.32 1.25 5.60% Diluted earnings per share (RMB/Share) 1.32 1.25 5.60% Weighted average ROE 7.80% 7.60% 0.20% Current period-end period-end of last year Changes over end of last year Total assets (RMB) 24,755,340,246.43 23,958,348,185.78 3.33% Net assets attributable to shareholder of listed 16,922,892,215.78 16,990,405,136.62 -0.40% company (RMB) 3. Number of shares and share-holding In Share Total common stock shareholders in Total preference shareholders with voting rights 59,709 0 reporting period-end recovered at end of reporting period (if applicable) Top ten shareholders Number of shares Proportion Amount of Nature of Amount of pledged/frozen Full name of Shareholders of shares restricted shareholder shares held State of Amo held shares held share unt State-owned Wuxi Industry Development Group Co., Ltd. 20.22% 204,059,398 corporate ROBERT BOSCH GMBH Foreign 14.16% 142,841,400 corporate Foreign Hong Kong Securities Clearing Company Ltd. (HKSCC) 5.60% 56,509,620 corporate Foreign BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 1.84% 18,530,315 corporate Central Huijin Assets Management Co., Ltd. State-owned 1.27% 12,811,200 corporate Foreign Monetary Authority of Macao - own fund 0.88% 8,923,416 corporate Basic Pension Insurance Fund- 1003 Other 0.83% 8,420,995 FIDELITY INVMT TRT FIDELITY INTL SMALL CAP Foreign 0.77% 7,725,486 FUND corporate NSSF - 413 Other 0.62% 6,300,027 NSSF - 103 Other 0.59% 5,999,932 Among the top ten shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd. and other Explanation on associated relationship among the shareholders, the first largest shareholder of the Company; and they do aforesaid shareholders not belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. Shareholders involving margin business (if applicable) Not applicable 2 无锡威孚高科技集团股份有限公司 2020 年半年度报告摘要 4. Changes of controlling shareholders or actual controller Controlling shareholder changed in the Period □ Applicable √ Not applicable Controlling shareholders had no change in reporting period. Actual controller changed in the Period □ Applicable √ Not applicable Actual controller had no change in reporting period. 5. Total preferred shareholders and top 10 shares held by preferred shareholders □ Applicable √ Not applicable The Company has no preferred shareholders 6. Corporate bond Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when semi-annual report approved for released or fail to cash in full on due: No III. Discussion and analysis of operation 1. Operation status in the period (i) Overall situation This year, affected by the novel coronavirus pneumonia epidemic, the company and the industry are facing huge challenges. At the beginning of the epidemic, the government issued a series of policies to control the spread of the epidemic, which forced companies to suspend work and production, and the poor social logistics system seriously affected the supply of raw materials and components and the products sales of the company. In response to the above-mentioned difficulties and challenges, the company has taken corresponding measures to respond actively,when the local epidemic was initially controlled, it speeded up the resumption of work and production, and ensured to neglect neither prevention and control of the epidemic nor production and operation.From the formal resumption of work on February 10 to the end of February, the company's resumption rate reached 80%, which basically met the needs of production. After the epidemic was basically controlled, the state issued a series of policies to stimulate economic recovery, which strongly promoted the recovery of the industry. In the face of positive policy signals, the company seized the opportunity to quickly organize the purchase of imported raw materials and important parts required by the company, ensuring the company’s production and operation needs in the second quarter and enabling the company to effectively resist the negative impact of the epidemic. Compared with the same period last year, the company's various economic indicators maintained good growth. During the reporting period, the company achieved operating income of 6.594 billion yuan, an increase of 49.76% over the same period last year; realized profits of 1.404 billion yuan, an increase of 3.49% over the same period last year; 3 无锡威孚高科技集团股份有限公司 2020 年半年度报告摘要 realized net profit attributable to owners of the parent company of 1.326 billion yuan, an increase of 5.55%over the same period last year. (ii) Main work carried out in the first half of the year 1. Actively responded to challenges, seized market opportunities, and ensured sales growth. The epidemic at the beginning of the year brought severe challenges to the industry and the company. The company adjusted its response strategies in a timely manner, actively promoted the implementation progress of key projects in key customers, increased the market shares of the three major business segments, and ensured the sales growth of the three major business products, and realized significant growth in operating income for the first half of the year. 2. Intensified technological research and development and promoted the development of new products. Gasoline supercharger products have gradually realized mass production in major customer projects; exhaust gas after-treatment system products have completed the encapsulation development of CN-VI GPF catalyst products for core customers on passenger cars, and achieved mass supply, and the development of WSP2.0 encapsulation platform have been in progress on commercial vehicles, all phases of tests were completed on schedule; the design, trial production and testing of functional samples of core components for new energy products were completed , and we mastered the basic research and development capabilities. 3. Consolidated lean production and built an information-based manufacturing system. Actively improved the construction and in-depth application of Weifu's intelligent manufacturing platform, and promoted the large-scale application of cloud computing and 5G. Currently, uploading the application to the cloud is in the implementation process. The construction plan design of 5G factory has been completed, the construction of Aris process management platform has been completed, and the unified process modeling has been established, integrating various management elements to form an integrated and visual process management model. 4. Improved cost control capabilities, standardized and unified cost center setting rules, and clarified cost responsibility subjects and authorization approval mechanisms. Built an asset management system, optimized asset quality, optimized financial structure, reduced working capital, optimized credit management system, combined credit and customer ratings, and controlled bad debts from the source; deepened the construction of PSSC sharing platform: the optimization plans for all special subjects of indirect material business PSSC system were completed, the first phase of the company’s full coverage of the direct material business PSSC system has been completed and launched. Reorganized the entire procurement process, and initially established a process map of the entire procurement process. Established the bottom line of strict compliance, integrated risk management into process construction, and gradually realized the risk management concept of integrating risk control compliance elements into the process system by identifying key risk control points in the process and integrating the management process and management risk. 5. Improved the strategic planning system and actively deployed new businesses. Focusing on the company's strategic planning system, implemented strategic planning management functions, established strategic planning and investment specialized committees, strategic planning work organizations and expert database organizations, basically established the company's medium and long-term strategic development master plan, and decomposed, implemented, tracked and evaluated the strategic planning. Promoted the implementation of new business plans, initially formulated product plans for hydrogen fuel cells, conducted market research on key customers, and 4 无锡威孚高科技集团股份有限公司 2020 年半年度报告摘要 promoted IRD capacity planning. 2. Matters relevant to financial report (1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the accounting period of last year √Applicable □Not applicable In accordance with the relevant requirements of the Accounting Standards for Business Enterprises No. 14-Revenue (CK [2017] No. 22) issued by the Ministry of Finance on July 5, 2017, the company made corresponding changes and adjustments to the new revenue standards. The details are as follows: 1. Incorporate the current revenue and construction contract standards into a unified revenue recognition model; 2. Use the transfer of control rights instead of the transfer of risk rewards as the criterion for determining the point in time of revenue recognition; 3. Identify each individual performance obligation contained in the contract and recognize revenue separately when performing it; 4. Provide clearer guidance for the accounting treatment of contracts that include multiple transaction arrangements; 5. Regulations are explicitly stipulated for the revenue recognition and measurement of certain specific transactions (or events). (2) Particulars about retroactive restatement on major correction for accounting errors in reporting period □ Applicable √ Not applicable The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period. (3) Particulars about the change of consolidation range compared with the accounting period of last year □ Applicable √ Not applicable No changes in the scope of the consolidated statements during the reporting period. Board of Directors of Weifu High-Technology Group Co., Ltd. 25 August 2020 5