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苏威孚B:2021年半年度报告(英文版)2021-08-24  

                                            无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.

        SEMI-ANNUAL REPORT 2021




              AUGUST 2021




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                                              无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




        Section I. Important Notice, Contents and Interpretation

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.
Wang Xiaodong, 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 2021 Semi-Annual Report is
authentic, accurate and complete.
All directors are attend the Meeting for the Report deliberation.
In this report, details of relevant risks and countermeasures in operation have
described, found more in relevant content in the Report. Concerning the
forward-looking statements with future planning involved in the Report, they do not
constitute a substantial commitment for investors.
The China Securities Journal, Securities Times, Hong Kong Commercial Daily and
Juchao Website (www.cninfo.com.cn)are the information disclosure media appointed
by the Company, all information should be prevail on the above mentioned media,
investors are advice to pay attention on investment risks.
The Company has no plan of cash dividend distributed, no cash bonus and
capitalizing of common reserves either carried out.



The Report is prepared in Chinese and English respectively. In the event of any
discrepancy between the two versions, the Chinese version shall prevail.




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                                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文



                                                  Contents




Section I. Important Notice, Contents and Interpretation ...................................... 2

Section II Company Profile and Main Financial Indexes ....................................... 6

Section III Management Discussion and Analysis.................................................... 9

Section IV. Corporate Governance .......................................................................... 22

Section V. Environmental and Social Responsibility ............................................. 24

Section VI. Important Matters ................................................................................. 25

Section VII. Changes in Shares and Particulars about Shareholders .................. 34

Section VIII. Preferred Stock ................................................................................... 40

Section IX. Corporate Bonds.................................................................................... 41

Section X. Financial Report ...................................................................................... 42




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                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                           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. The Semi-Annual report published on China Securities Journal, Securities Times and Hong Kong
Commercial Daily during the Period.




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                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                       Interpretation


                    Items            Refers to                                   Contents

Company, The Company, WFHT           Refers to WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.

Wuxi Industry Group                  Refers to Wuxi Industry Development Group Co., Ltd.

Robert Bosch, Robert Bosch Company   Refers to Robert Bosch Co., Ltd, ROBERT BOSCH GMBH

RBCD                                 Refers to Bosch Powertrain Systems Co.,Ltd.

WFLD                                 Refers to Wuxi Weifu Lida Catalytic Converter Co., Ltd.

WFJN                                 Refers to Nanjing Weifu Jinning Co., Ltd.

WFTT                                 Refers to Ningbo Weifu Tianli Turbocharging Technology Co., Ltd.

WFCA                                 Refers to Wuxi Weifu Chang’an Co., Ltd.

WFMA                                 Refers to Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd.

WFTR                                 Refers to Wuxi Weifu International Trade Co., Ltd.

WFSC                                 Refers to Wuxi Weifu Schmitter Powertrain Components Co., Ltd.

WFAM                                 Refers to Wuxi Weifu Autocam Precision Machinery Co., Ltd.

WFDT                                 Refers to Wuxi Weifu E-drive Technologies Co., Ltd.

WFAS                                 Refers to Wuxi Weifu Autosmart Seating System Co., Ltd.

SPV                                  Refers to Weifu Holding ApS

IRD                                  Refers to IRD Fuel Cells A/S

Borit                                Refers to Borit NV

WFEC                                 Refers to Wuxi Weifu Environmental Catalysts Co., Ltd.

WFPM                                 Refers to Wuxi Weifu Precision Machinery Manufacturing Co., Ltd.

Zhonglian Electronics                Refers to Zhonglian Automobile Electronics Co., Ltd.

Shinwell Automobile                  Refers to Shinwell Automobile Technology (Wuxi) Co., Ltd.

CSRC                                 Refers to China Securities Regulatory Commission

SZ Stock Exchange                    Refers to Shenzhen Stock Exchange

Reporting period                     Refers to 1 January 2021 to 30 June 2021




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                Section II Company Profile and Main Financial Indexes

I. Company profile

Short form of the stock                        WFHT, Su Weifu-B                    Stock code          000581, 200581
Stock exchange for listing                     Shenzhen Stock Exchange
Name of the Company (in Chinese)               无锡威孚高科技集团股份有限公司
Short form of the Company (in Chinese if
                                               威孚高科
applicable)
Foreign name of the Company (if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
Short form of foreign name of the Company
                                               WFHT
(if applicable)
Legal representative                           Wang Xiaodong


II. Person/Way to contact

                                                   Secretary of the Board                       Rep. of security affairs
Name                                  Liu Jinjun                                   Xu Kan
Contact add.                          No.5 Huashan Road, Xinwu District, Wuxi      No.5 Huashan Road, Xinwu District, Wuxi
Tel.                                  0510-80505999                                0510-80505999
Fax.                                  0510-80505199                                0510-80505199
E-mail                                Web@weifu.com.cn                             Web@weifu.com.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 2020.


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 2020.




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IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No

                                                   Current period          Same period of last year      Changes over last year

Operating income (RMB)                                9,037,691,756.24              6,594,403,624.56                        37.05%

Net profit attributable to shareholders of the
                                                      1,645,389,487.32              1,326,344,424.98                        24.05%
listed company (RMB)
Net profit attributable to shareholders of the
listed     company       after     deducting          1,702,220,554.09              1,175,574,728.86                        44.80%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
                                                         80,191,609.17               437,657,072.41                        -81.68%
activities (RMB)

Basic earnings per share (RMB/Share)                                1.66                        1.32                        25.76%

Diluted earnings per share (RMB/Share)                              1.66                        1.32                        25.76%

Weighted average ROE                                             8.72%                        7.80%                          0.92%
                                                                                                       Changes over period-end of
                                                 Current period-end        period-end of last year
                                                                                                               last year
Total assets (RMB)                                   27,779,188,733.05           27,350,695,388.21                           1.57%

Net assets attributable to shareholder of
                                                     18,435,134,764.13           18,282,017,990.66                           0.84%
listed company (RMB)


V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.


VI. Items and amounts of extraordinary profit (gains)/loss

√Applicable   □ Not applicable
                                                                                                                          Unit: yuan



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                                                                          无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                              Item                                                    Amount                Note

Gains/losses from the disposal of non-current asset (including the write-off that accrued for
                                                                                                       2,301,315.63
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 enterprise’s      23,433,211.68
business)

Gains/losses of fair value changes from holding the trading financial asset, derivative
financial assets, trading financial liability and derivative financial liability and investment
earnings obtained from disposing the trading financial asset, derivative financial assets,          -91,729,334.10
trading financial liability, derivative financial liability and other debt investment, except for
the effective hedging business related to normal operation of the Company

Other non-operating income and expenditure except for the aforementioned items                           261,828.55

Less: Impact on income tax                                                                            -9,604,873.99

     Impact on minority shareholders’ equity (post-tax)                                                 702,962.52

Total                                                                                               -56,831,066.77           --

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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                  Section III Management Discussion and Analysis

I. Main businesses of the company in the reporting period

During the reporting period, there were no major changes in the company's main business and business model.
Details were as follows:
(i) The company’s main business
The company's main business is the R & D, production and sales of automotive core components. During the
reporting period, the main products were diesel fuel injection system products, and automobile exhaust
after-treatment system products and air management system products. At the same time, the company has
established R & D capabilities of fuel cell core components and has achieved production and sales.
1. The diesel fuel management system products are widely used in different power diesel engines supporting all
types of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only
makes products matching with the main engines used at home but also exports some products to the Americas,
Southeast Asia, and the Middle East. The products meet the needs of national emission standards.
2. The auto exhaust after-treatment system products are supporting all major automobile manufactures in China.
And the products meet the needs of national emission standards.
3. The Air management system products, matches with most of the domestic small-bore diesel engine plants and
some 6-cyl diesel engine manufacturers, and meet the needs of the light and heavy commercial vehicles and some
passenger cars and the engineering machinery. And the products meet the needs of national emission standards.
4. Key parts of the fuel cell, including membrane electrodes, graphite bipolar plates, metal bipolar plates and BOP
key components for domestic and foreign fuel cell reactor and system manufacturers.


(ii) Business model of the Company
The Company follows the operating philosophy of “making competitive products, creating famous brands, and
achieving joint value growth”, implements the business model that parent company unifies the management and
subsidiaries decentralize the production. The parent company is responsible for making strategic development
planning and operation targets, and making the unified management, instruction and assessment for the finance,
significant personnel management, core raw materials, quality control, and the R&D of technologies. The
subsidiaries arrange production based on the order management model of market, which makes the subsidiaries
keep the consistent quality with the company, helps keep abreast of customer needs and saving logistics costs,
maintain the timeliness of products production and supply, and improve the company’s economic benefits.


(iii) Development of the industry
Since this year, the national economy has been showing a continuous and steady recovery, and China's economy
is steadily strengthening and improving. In this context, the automobile market is overall stable, constantly laying


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a solid foundation for the development of the industry.
According to the data of China Association of Automobile Manufactures: From January to June of 2021, the
production and sales of automobile totaled 12.57 million and 12.89 million respectively, up 24.24% and 25.63%
on a y-o-y basis respectively. Among them, the production and sales of passenger vehicles totaled 9.84 million
and 10.01 million respectively with 26.83% and 27.04% increased on a y-o-y basis; the production and sales of
commercial vehicles completed 2.73 million and 2.88 million respectively, an increase of 15.73% and 20.95%
respectively from a year earlier.


(iv) The Company’s business conditions during the reporting period
Since this year, the company has seriously implemented the annual work goal, seized the development
opportunities of automobile industry, especially the commercial vehicles, and both production and sales of main
products including diesel fuel injection system products, automobile exhaust after-treatment system products and
air management system products have been thriving. The company's main economic indicators in the first half of
the year has maintained better growth compared with the same period last year. During the reporting period, the
Company achieved an operating income of 9.038 billion yuan, an increase of 37.05% over the same period of the
previous year; the net profit attributable to shareholder of parent company has 1.645 billion yuan, an increase of
24.05% over the same period last year.
Main work carried out by the company during the reporting period:
1. Seize market opportunities and improve marketing management. The company seized the market development
opportunities of the automobile industry, especially the commercial vehicles, dynamically focused on the annual
key projects and indicator schedules. Driven by factors such as China VI standard switching, over-limit control
and infrastructure projects, the sales of diesel fuel injection system products and automobile exhaust
after-treatment system products have increased significantly, and the share of the company's main products and
strategic customers in the market has increased. The current China VI projects have been making steady progress,
and new business projects such as hydrogen fuel cells and intelligent networks have achieved positive progress.
The company has accelerated the integration and training of marketing team, continuously improved the operation
mechanism of the key customer manager platform, focused on core strategic customers and key customers, and
achieved remarkable results in the new energy field. The company's new image and new brand have been steadily
promoted, and the major exchange activities with customers have been carried out intensively.
2. Strengthen technological innovation and accelerate new layout. Key research and development projects such as
diesel fuel injection system, automobile exhaust after-treatment system, air management system, hydrogen energy
fuel cell, and intelligent network has been promoting steadily as planned. We deepened the business planning of
the core components of hydrogen fuel cell, promoted the feasibility study of producing hydrogen by water
electrolysis, promoted the construction planning of the hydrogen energy department, and obtained the support of
government departments for the development of hydrogen energy business; further improved the planning of
environmental situation awareness in the intelligent safeguard field, and combined with the intelligent cockpit to
complete a new round of intelligent network planning. In order to seek opportunities for coordinated development
of the industrial chain, we have completed the investments in Qingdao Shang Qi Hui Zhu Zhan Xin Industry


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Investment Fund and Wuxi Auto-link World Information Technology Co., Ltd., improved the cooperative
management mode of new business and overseas subsidiaries, and made positive progress in customer
cooperation and market application of new business.
3. Strengthen quality management and promote intelligent manufacturing. Improved the evaluation standards for
the product quality full lifecycle management maturity and the preparation process of 5M1E full factors maturity
and completed the pilots; planned and organized special work of high quality improvement in production,
strengthened the effectiveness of employee raising hands, review and rectification implementation in process
quality control. Intelligent manufacturing system projects such as WMS and MES continued to advance and
gradually put into service, and the construction of intelligent factories proceeded in an orderly manner, 5G+
Innovation Lab completed the infrastructure work and subject system design, information security system
completed construction and passed the on-site audit of the ISO27001 system, and built EHS information
regulatory platform and imported the safety process S-FMEA control.
4. Promote management upgrade and improve business benefits. Established a "one report one meeting"
management monitoring mechanism and put into normal operation. Completed the launch of the main plan of the
common rail parts collaborative system, promoted the raw material quality management improvement project, and
strengthened the analysis and disposal of slow flow materials. Continuously optimized the sharing service
platform, and further promoted cost standardization and refined management, and asset operation quality and fund
operating efficiency had continuous improvement. Continuously carried out risk control capacity building and
self-investigation work of business division risk control compliance. Further implemented the ten measures for
human resources control, planned and organized the "Three Sail One Master" special training activities,
formulated salary structural adjustment programs, and continued to enhance internal fairness and external
competitiveness.


II. Core Competitiveness Analysis

1. Industry and brand advantages. The company was established in 1958, after more than 60 years of development,
it has become a famous manufacturer of auto parts at home, and has established long-term and stable cooperative
relations with major domestic main engine factories and vehicle manufacturers, the existing automobile core
components main products (including diesel fuel injection system, exhaust after-treatment system, air
management system) have strong market competitiveness and higher market share. The company is a pacesetter
enterprise in China's internal combustion engine industry, and ranks in the top 30 enterprises in China’s auto parts
industry.
2. Technology and product advantages. The company is a national high-tech enterprise. It has scientific research
platforms such as "National Enterprise Technology Center", "National High-tech Research and Development Plan
Achievement Industrialization Base", "Post-Doctoral Scientific Research Workstation", "Jiangsu Postgraduate
Workstation" and number of provincial-level engineering and technological research centers, provincial-level
engineering laboratories, and other research and development institutions, mainly focus on fuel injection systems,
exhaust after-treatment systems, and air management systems to conduct technical research and product
development. The company has mastered a number of core patented technologies, the main product technical

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indicators are at the leading level in the industry. In recent years, the company focuses on the strategic layout in
the fields of hydrogen energy & driving and intelligent network connection, established a new energy and network
technology research institute, built a hydrogen energy fuel cell test center, and formed technical research and
development capabilities of hydrogen fuel cell core components and intelligent network products.
3.Management and manufacturing advantages. The company has a complete organizational structure and
management systems process, and has built a financial sharing platforms, which can realize the effective
migration and stable operation of organization & personnel, business & accounting; The established human
resources information system platforms can ensure the timely and accurate standardization of organization,
personnel, salary and attendance; built a purchase sharing system, opened up the information interconnection of
enterprises and suppliers, and achieved the closed-loop management of the procurement process; carried out the
Weifu Production System (WPS) with lean philosophy, established the quality management system with the
whole process, and has strong capabilities in production and manufacturing, quality assurance, cost control and
product delivery. The company focuses on intelligent manufacturing, continues to build intelligent factories with
Weifu characteristics, and promotes the application of cloud computing and 5G networks, which can strongly
support the company’s future business development.
4. Advantages in marketing and service. The company has a stable, professional and experienced marketing team
that can provide targeted support and services according to customer needs, and customer relationships are
harmonious. For long-term strategic customers, the company has established a four-in-one marketing
collaboration organization composed of leaders, key account managers, marketing departments, and business
departments. The company’s management exchanges regular visits to promote exchanges and cooperation. The
company has a relatively perfect after-sales service system, has built after-sales service network and intelligent
service platform, established special maintenance technology service stations nationwide to regularly provide end
users with the training of operation and maintenance, fault analysis and judgment and provide customers with fast,
timely and professional comprehensive after-sales services.
5. Talent advantage. The company's management team has extensive experience and a good industry reputation in
the Automobile components industry. The company pays attention to the growth of employees and the
construction of a core talent team. After years of accumulation, it has accumulated a group of professional and
high-quality management and technical personnel, established a reasonable talent echelon, and provided strong
manpower resource guarantee for the company's long-term and stable development. The company's human
resource management system is relatively complete, continuously optimizing various human resource
management systems to provide a fair value realization platform for employees' career development. The
company pays attention to the service and care of employees, improves the service experience of employees
through the establishment of employee self-service platform, and creates a working environment with warmth and
sense of belonging.
6. Excellent corporate culture. The company takes “quality and intelligence driving a better life”as a mission and
"100-year Weifu auto core parts industry expert" as a vision, fulfills the core value of "focus, innovation,
responsibility, integration", insists on the enterprise spirit of "doing practical things, daring to act, being good at
cooperation, bravely contending for the first". During the reporting period, the company put forward the cultural

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positioning of "quality and intelligence", created a              cultural system of "quality and intelligence", quality and
intelligence is the company's cultural double engine, reflecting the persistence of the original aspiration and the
pursuit of the future. The company held the release and interpretation conference of "quality and intelligence"
cultural system (including cultural concept system, behavioral normative system, visual identity system), issued
the "Five-Year Outline of Enterprise Culture Construction". The continuous innovation of corporate culture
construction is a strong support for the company's sustained excellence, provides strong support for the company
to become a trustworthy and respected industrial experts, and plays a positive role in achieving the company's
strategic objectives.

III. Main business analysis
See the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
                                                                                                                         Unit: yuan

                                                        Same period of last y-o-y changes
                                     Current period                                                         Reasons
                                                              year              (+,-)
                                                                                         Mainly due to the major growth from
                                                                                         sales of the products of diesel fuel
Operation income                     9,037,691,756.24     6,594,403,624.56        37.05%
                                                                                         management system and auto exhaust
                                                                                         after-treatment system
                                                                                         Mainly due to the major growth from
                                                                                         sales of the products of diesel fuel
Operation cost                       7,497,917,157.07     5,413,969,374.53        38.49%
                                                                                         management system and auto exhaust
                                                                                         after-treatment system
Sales expenses                         111,193,615.56       138,394,171.31       -19.65%
Administrative expenses                266,226,378.32       336,984,661.28       -21.00%
Financial cost                          15,935,073.06       -34,606,959.25                  Mainly due to increase in borrowings
Income tax expense                     117,972,661.22        57,505,452.12       105.15% Mainly due to profit increase
R&D investment                         249,583,255.99       211,531,953.72        17.99%
Net cash flow arising from                                                                  Mainly due to increase in the raw
                                        80,191,609.17       437,657,072.41       -81.68%
operation activities                                                                        material purchases
                                                                                         Mainly due to the year-on-year decrease
Net cash flow arising from
                                       951,130,720.49     1,445,525,014.63       -34.20% in dividends received from participating
investment activities
                                                                                         companies
Net cash flow arising from
                                      -496,851,948.29    -1,000,189,530.78                  Mainly due to increase in borrowings
financing activities
Net increase of cash and cash
                                       531,062,209.58       887,655,835.02       -40.17%
equivalent

Major changes on profit composition or profit resources in reporting period
□ Applicable    √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period


Constitution of operation revenue


                                                                                                                         Unit: yuan



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                                         Current period                             Same period of lat year
                                                                                                                       Increase/decrease
                                                   Ratio in operation                             Ratio in operation       y-o-y(+,-)
                                    Amount                                    Amount
                                                        revenue                                        revenue
Total operation revenue       9,037,691,756.24                 100%         6,594,403,624.56                   100%               37.05%
According to industries
Automobile components         8,767,778,890.21               97.01%         6,352,974,489.95                  96.34%              38.01%
Other business                    269,912,866.03              2.99%            241,429,134.61                 3.66%               11.80%
According to products
Diesel fuel management
                              3,998,550,461.69               44.24%         2,698,345,643.33                  40.92%              48.19%
system
Automobile
                              4,379,307,721.36               48.46%         3,298,709,150.58                  50.02%              32.76%
after-treatment system
Air management system             389,920,707.16              4.31%            355,919,696.04                 5.40%                9.55%
Other business                    269,912,866.03              2.99%            241,429,134.61                 3.66%               11.80%
According to region
Domestic                      8,782,591,522.28               97.18%         6,479,404,165.51                  98.26%              35.55%
Foreign                           255,100,233.96              2.82%            114,999,459.05                 1.74%              121.83%
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable   □ Not applicable
                                                                                                                               Unit: yuan

                                                                                                                           Increase/decrea
                                                                                    Increase/decrease Increase/decrease
                                                                       Gross                                                 se of gross
                           Operating revenue       Operating cost                      of operating   of operating cost
                                                                     profit ratio                                            profit ratio
                                                                                      revenue y-o-y         y-o-y
                                                                                                                                y-o-y
According to industries
Automobile components 8,767,778,890.21 7,264,238,382.73                 17.15%                 38.01%             38.21%           -0.12%
According to products
Diesel fuel management
                            3,998,550,461.69 3,055,555,268.29           23.58%                 48.19%             55.11%           -3.41%
system
Automobile
                            4,379,307,721.36 3,948,752,250.29            9.83%                 32.76%             30.08%            1.86%
after-treatment system
Air management system         389,920,707.16        259,930,864.15      33.34%                  9.55%              3.76%            3.72%
According to region
Domestic                    8,512,678,656.25 7,016,338,304.86           17.58%                 36.47%             36.38%            0.05%
Foreign                       255,100,233.96        247,900,077.87       2.82%                121.83%            122.41%           -0.26%

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable


Reasons for y-o-y relevant data with over 30% changes
√Applicable     □Not applicable
Mainly due to the major growth from sales of the products of diesel fuel management system and auto exhaust after-treatment system




                                                                                                                                           14
                                                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


IV. Analysis of non-main business

√Applicable □Not applicable
                                                                                                                              Unit: yuan

                                     Amount              Ratio in total profit             Note             Whether be sustainable (Y/N)
                                                                                                        Y (The Company’s joint
                                                                              The investment income
                                                                                                        ventures RBCD and Zhonglian
                                                                              mainly from the joint
Investment income                1,105,771,532.34                      61.19%                           Electronics     have    stable
                                                                              ventures   RBCD       and
                                                                                                        production and operation both
                                                                              Zhonglian Electronics
                                                                                                        on a sustained basis)
                                                                              Mainly the fair value
Gain/loss of fair value
                                    -86,131,772.46                     -4.77% changes from investment
changes
                                                                              on Guolian Securities
Asset impairment                   -103,997,387.44                      -5.76%
Non-operating income                      488,184.66                    0.03%
Non-operating expense                     851,627.30                    0.05%


V. Assets and liability

1. Major changes of assets composition
                                                                                                                              Unit: yuan

                     End of the current period                 End of last year          Ratio
                                            Ratio in                          Ratio in changes(+           Notes of major changes
                          Amount                            Amount                        ,-)
                                          total assets                      total assets

Monetary fund       2,459,226,978.01          8.85% 1,963,289,832.33              7.18%     1.67%

Account
                    4,213,530,522.34         15.17% 2,824,780,352.41              10.33%    4.84% Sales revenue increased
receivable

Inventory           2,269,721,200.22          8.17% 2,877,182,174.64              10.52%   -2.35%

Investment
                          20,124,766.49       0.07%         20,886,681.62         0.08%    -0.01%
property
Long-term
equity              5,010,523,270.10         18.04% 4,801,488,290.97              17.56%    0.48%
investment

Fix assets          2,903,123,563.06         10.45% 2,882,230,191.08              10.54%   -0.09%

Construction in
                     234,758,990.27           0.85%       243,795,493.04          0.89%    -0.04%
progress
Right-of-use                                                                                        Implementing the new lease standards
                          19,558,033.46       0.07%                                         0.07%
assets                                                                                              in 2021
                                                                                                  Bank loans from WFLD increased due
Short-term loans 1,209,809,417.24             4.36%       302,238,600.05           1.11%    3.25% to the needs of production and
                                                                                                  operation
Contractual
                          57,488,324.87       0.21%         81,717,387.25         0.30%    -0.09%
liability

Long-term loans            2,921,841.19       0.01%          3,050,640.97         0.01%

                                                                                                    Implementing the new lease standards
Lease liability           16,761,771.80       0.06%                                         0.06%
                                                                                                    in 2021


                                                                                                                                           15
                                                                          无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


2. Major foreign assets

√Applicable     □Not applicable

                                                                                                                 Foreign
                                                                                                                             Whether
                                                                                                               assets as a
                                                                                                                             there is a
               Formation                                                    Controls to safeguard the Earnings percentage
  Assets                    Assets size      Location   Operation model                                                     significant
                reasons                                                        security of assets      status    of the
                                                                                                                              risk of
                                                                                                               Company’
                                                                                                                           impairment
                                                                                                                s assets
                                                    The
                                                                      The Company will pay
                                                    wholly-owned
                                                                      full attention to the
                                                    subsidiary of the
          Enterprise                                                  changes in industry and
                                                    Company,
          combined                                                    market, strengthen the
IRD Fuel             RMB                            development,
          under the                         Denmark                   corporate    governance, N/A                  0.80% N
Cells A/S            147.52million                  production    and
          different                                                   personnel management,
                                                    sales    of   the
          control                                                     financial   management,
                                                    component
                                                                      auditing supervision and
                                                    products of fuel
                                                                      performance assessment
                                                    cell
                                                     The               The Company will pay
                                                     wholly-owned      full attention to the
         Enterprise                                  subsidiary of the changes in industry and
         combined RMB                                Company,          market, strengthen the
Borit NV under the 104.6211                  Belgium production    and corporate    governance, N/A                 0.57% N
         different million                           sales    of   the personnel management,
         control                                     component         financial   management,
                                                     products of fuel auditing supervision and
                                                     cell              performance assessment

3. Assets and liability measured by fair value
√ Applicable    □ Not applicable
                                                                                                                              Unit: yuan


                                                      Accu
                                                      mulat    Deval
                                                                                            Amo
                                                        ive    uation
                                                                                             unt
                                                      chang      of
                                      Changes of fair                                         of
                                                       es of   withd        Amount of
                   Amount at the           value                                             sale                        Amount at
    Items                                               fair   rawin      purchase in the         Other changes (+,-)
                  beginning period    gains/losses in                                         in                         period-end
                                                      value     g in          period
                                        this period                                          the
                                                      recko     the
                                                                                            perio
                                                        ned    perio
                                                                                               d
                                                       into      d
                                                      equity


Financial
assets

1.Trading
financial
asset(excludin
                   5,324,221,360.10       -86,131,772.46                8,890,427,670.00           -7,745,575,899.47 6,382,941,358.17
g derivative
financial
assets)


                                                                                                                                      16
                                                                     无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


2.Other equity
instrument           285,048,000.00                                                                                 285,048,000.00
investment
3. Account
receivable         1,005,524,477.88                                                             -410,112,625.30     595,411,852.58
financing
Subtotal of
financial          6,614,793,837.98    -86,131,772.46               8,890,427,670.00          -8,155,688,524.77 7,263,401,210.75
assets
Above total        6,614,793,837.98    -86,131,772.46               8,890,427,670.00          -8,155,688,524.77 7,263,401,210.75
Financial
                                0.00                                                                                          0.00
liabilities
Other changes include the maturity of financial products.
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes    √No


4. The assets rights restricted till end of the period

                                                                                                                        Unit: yuan

                           Book value at
          Item                                                                 Restriction reason
                            period-end
Monetary funds                 5,956,935.70 Cash deposit paid for bank acceptance
Monetary funds                   587,241.00 L/C margin
Monetary funds                   206,740.00 Cash deposit for Mastercard
Monetary funds                 2,838,880.93 Court freeze
Note receivable              755,821,058.54 Notes pledge for bank acceptance
Receivable financing         155,506,772.41 Notes pledge for bank acceptance
                                            In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of
                                            Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as Shenzhen
                                            Intermediate People's Court), the property with the value of 217 million Yuan under the
Trading       financial
                             163,934,219.22 name of the Company and other seven respondents and the third party Shenzhen Hejun
asset
                                            Chuangye Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) was frozen. As
                                            of the end of the reporting period, 4.71 million shares of Miracle Automation and
                                            11,739,102 shares of SDEC held by the Company were frozen.
Total                      1,084,851,847.80 --

VI. Investment analysis

1. Overall situation

□ Applicable    √ Not applicable


2. The major equity investment obtained in the reporting period

□ Applicable    √ Not applicable




                                                                                                                                17
                                                                                  无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


         3. The major non-equity investment doing in the reporting period

         □ Applicable    √ Not applicable


         4. Financial assets investment

         (1) Securities investment
         √ Applicable    □ Not applicable
                                                                                                                                           Unit: yuan

                                                                                   Cum
                                                                                    ulati
                                          Acc
                                                                                     ve
                  Shor                    ount                                            Curren
Vari                                                                                fair         Curr                                      Acc
         Cod         t                     ing                                               t                                                  Capi
ety                                               Book value at       Current       valu          ent Profit and loss     Book value at    ount
          e of    form      Initial       mea                                             purcha                                                 tal
of                                               the beginning of gain/loss of fair e            sales in the Reporting   the end of the    ing
         secu       of investment cost    sure                                              se                                                  Sour
secu                                                the period     value changes chan            amo        Period            period       subj
         rities   secu                    ment                                            amoun                                                  ce
rities                                                                              ges           unt                                       ect
                  rities                  mod                                                t
                                                                                     in
                                            el
                                                                                   equit
                                                                                      y
Dom
                             Mea
estic                                                                                                                                 Trad
                             sure
and                                                                                                                                   ing Own
      600 SDE                d by
forei         199,208,000.00                      140,395,956.00   -22,078,920.00                       -22,078,920.00 118,317,036.00 finan fund
      841 C                  fair
gn                                                                                                                                    cial s
                             valu
stoc                                                                                                                                  asset
                             e
ks
Dom
                                        Mea
estic     Mira                                                                                                                           Trad
                                        sure
and       cle                                                                                                                            ing Own
      002                               d by
forei     Auto            69,331,500.00            47,712,300.00     9,278,700.00                         9,278,700.00     56,991,000.00 finan fund
      009                               fair
gn        mati                                                                                                                           cial s
                                        valu
stoc      on                                                                                                                             asset
                                        e
ks
Dom
                                        Mea
estic                                                                                                                                 Trad
          Guol                          sure
and                                                                                                                                   ing Own
      601 ian                           d by
forei                     12,000,000.00           326,848,122.00   -78,932,130.66                       -78,932,130.66 247,915,991.34 finan fund
      456 Secu                          fair
gn                                                                                                                                    cial s
          rities                        valu
stoc                                                                                                                                  asset
                                        e
ks
Dom
                                        Mea
estic     Lifa                                                                                                                           Trad
                                        sure
and       n                                                                                                                              ing Own
      601                               d by                                             62,845
forei     Tech                62,845.00                                   3,016.56                            3,016.56         65,861.56 finan fund
      777                               fair                                                .00
gn        nolo                                                                                                                           cial s
                                        valu
stoc      gy                                                                                                                             asset
                                        e
ks


                                                                                         62,845
Total                    280,602,345.00    --     514,956,378.00   -91,729,334.10 0.00          0.00 -91,729,334.10 423,289,888.90          --        --
                                                                                            .00




                                                                                                                                                 18
                                                                            无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


Disclosure date
                24 March 2012
of securities
investment
approval of the 4 June 2013
Board

    Note: Lifan Technology is arising from the conversion of account receivable

    (2) Derivative investment
    □ Applicable   √ Not applicable
    There are no derivative investment during the reporting period.


    VII. Sales of major assets and equity

    1.Sales of major assets

    □ Applicable   √ Not applicable
    No major assets were sold during the reporting period.


    2. Sales of major equity

    □ Applicable   √ Not applicable


    VIII. Analysis of the main equity participation and controlling subsidiary

    √ Applicable    □ Not applicable
    Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
                                                                                                                              Unit: yuan

  Comp
             Main
   any Type                Register capital     Total assets          Net assets   Operating revenue Operating profit     Net profit
            business
  name


            Auto
      Subs after-treat
 WFLD idiar ment       502,596,300.00         5,976,062,583.45 2,060,970,673.49 4,394,119,908.54        150,614,557.19   139,109,362.55
        y system
            products


            Diesel fuel
      Subs
            manageme
 WFJN idiar             346,286,825.80        1,522,797,308.65 1,022,096,979.65       541,395,186.39     97,928,160.62    88,001,445.49
            nt system
        y
            products

      Equi
        ty
              Diesel fuel
      parti
              manageme USD
 RBCD cipat                            17,805,127,204.87 7,883,633,790.77 10,208,920,776.81 2,273,489,030.31 1,988,551,544.06
              nt system 382,500,000.00
       ion
              products
      enter
      prise


                                                                                                                                  19
                                                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


       Equi
         ty
Zhong
       parti Gasoline
 lian
       cipat system      600,620,000.00     7,076,155,948.83 6,078,184,036.66         11,255,332.80     892,841,465.02      891,476,084.86
Electr
        ion products
onics
       enter
       prise

   Subsidiary obtained and disposed in the Period
   □ Applicable   √ Not applicable
   Explanation on holding equity participation enterprise
   Benefited from the booming in the automobile industry in the first half of the year, WFLD, WFJN and RBCD have a good growth in
   operation income and net profit; Zhonglian Electronics has a faster growth in net profit, and mainly due to the investment income
   from its joint venture- UAES.


   IX. The structured subject controlled by the Company

   □ Applicable   √ Not applicable


   X. Risks and countermeasures

   1. Macro economy and market risks
   Affected by the COVID-19 epidemic, the macro economy and market environment are still complicated and
   severe, and the industry will still face greater pressure. If industry demand declines, it will have a certain impact
   on the company's production and operation and profitability.
   Countermeasures: The company will always pay attention to macroeconomic and industry development trends,
   consolidate its current business market position, actively expand new businesses, and strive to improve the
   company's core competitiveness and overall risk resistance.
   2. Operating management and control risks
   As the company’s business scope continues to expand, especially in the new energy field, the management span is
   rather large and there are potential operating management and investment risks.The external environment was
   affected by the epidemic, the varying affected degree of customers and sales declines, restrictions on logistics and
   transportation areas, delayed payment by some customers, and increased pressure on fund quality and repayment
   has brought certain risks to the company’s business.
   Countermeasures: the company will continue to promote the optimization and improvement of internal
   management, perfect the procedures, further manage standardization and control the management risks; focus on
   the impact of market dynamics on the Company; continue to develop strategy customers, and gradually strengthen
   the new business market connection and new new products promotion.
   3. The risks of fluctuations in raw material prices
   The company's main raw materials include various grades of steel, aluminum, precious metals, etc., the continuous
   rise in prices will bring the risks of rising costs to the company.
   Countermeasures: the company will pay close attention to the price trend of major raw materials, choose


                                                                                                                                       20
                                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


appropriate procurement opportunities, and make reasonable strategic reserves to resolve the risk of raw material
price fluctuations.
4. Risks associated with financial instruments
The company's main financial instruments include monetary funds, structured deposits, receivables, equity
instrument investments, wealth management products, loans, payable, etc. In the operation process, the risks
related to financial instruments faced by the company mainly include credit risk, market risk and liquidity risk.
Countermeasures: confirm and analyze the various risks faced by the Company, establish an appropriate risk
tolerance bottom line and carry out risk management, and timely monitor various risks to ensure that the risks are
controlled within a limited range and the negative impact of the risks on the company’s operating performance is
reduced to the minimum level to maximize the interests of shareholders and other investors.




                                                                                                                    21
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                   Section IV. Corporate Governance

I. AGM and extraordinary general meeting

1. AGM held in the period

                                                 Participation ratio
               Meeting                    Type                          Holding date     Disclosure date          Resolutions
                                                   for investors
                                                                                                           Notice No.: 2021-024
Annual General Meeting of 2020           AGM          45.88%           2021-05-20      2021-05-21          released on Juchao Website
                                                                                                           (www.cninfo.com.cn)


2. Request for extraordinary general meeting by preferred stockholders with rights to vote


□ Applicable √ Not applicable


II. Changes of directors, supervisors and senior executives

√Applicable   □Not applicable

        Name                       Position                 Type                    Date                          Cause
Wang Xiaodong         Chairman                      Be elected            May 20, 2021              Renewal of the BOD
Kirsch Christoph      Vice Chairman                 Be elected            May 20, 2021              Renewal of the BOD
Xu Yunfeng            Vice Chairman                 Be elected            May 20, 2021              Renewal of the BOD
Ou Jianbin            Director                      Be elected            May 20, 2021              Renewal of the BOD
Chen Yudong           Director                      Be elected            May 20, 2021              Renewal of the BOD
Zhao Hong             Director                      Be elected            May 20, 2021              Renewal of the BOD
Huang Rui             Director                      Be elected            May 20, 2021              Renewal of the BOD
Yu Xiaoli             Independent Director          Be elected            May 20, 2021              Renewal of the BOD
Xing Min              Independent Director          Be elected            May 20, 2021              Renewal of the BOD
Feng Kaiyan           Independent Director          Be elected            May 20, 2021              Renewal of the BOD
Pan Xinggao           Independent Director          Be elected            May 20, 2021              Renewal of the BOD
                      Chairman of Board of
Ma Yuzhou                                           Be elected            May 20, 2021              Renewal of the BOS
                      Supervisory
Chen Ran              Supervisor                    Be elected            May 20, 2021              Renewal of the BOS
Liu Songxue           Supervisor                    Be elected            May 20, 2021              Renewal of the BOS
Xu Yunfeng            GM                            Appointments          May 20, 2021              Renewal of the BOD
                      Standing Deputy GM and
Ou Jianbin                                          Appointments          May 20, 2021              Renewal of the BOD
                      financial manager
Miao Yuming           Deputy GM                     Appointments          May 20, 2021              Renewal of the BOD
Xu Sheng              Deputy GM                     Appointments          May 20, 2021              Renewal of the BOD
Rong Bin              Deputy GM                     Appointments          May 20, 2021              Renewal of the BOD



                                                                                                                                    22
                                                                  无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                      Deputy GM, Secretary of the
Liu Jinjun                                        Appointments      May 20, 2021          Renewal of the BOD
                       Board
Li Gang               Chief engineer             Appointments       May 20, 2021          Renewal of the BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Rudolf Maier          Vice Chairman                                 May 20, 2021
                                                 term of office                           BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Zhang Xiaogeng        Director                                      May 20, 2021
                                                 term of office                           BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Hua Wanrong           Director                                      May 20, 2021
                                                 term of office                           BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Lou Diming            Independent Director                          May 20, 2021
                                                 term of office                           BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Jin Zhangluo          Independent Director                          May 20, 2021
                                                 term of office                           BOD
                                                 Outgoing after                           Outgoing after the renewal of the
Xu Xiaofang           Independent Director                          May 20, 2021
                                                 term of office                           BOD
                      Chairman of Board of       Outgoing after                           Outgoing after the renewal of the
Shi Xingyuan                                                        May 20, 2021
                      Supervisory                term of office                           BOS
                                                 Outgoing after                           Outgoing after the renewal of the
Zhou Weixing          Secretary of the Board                        May 20, 2021
                                                 term of office                           BOD


III. Profit distribution plan and capitalizing of common reserves in the period

□ Applicable √ Not applicable

There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual


IV. Implementation of the stock incentive plans, employee stock ownership plans or other
employee incentives

√Applicable    □Not applicable

The registration for the first grant of restricted shares under the equity incentive plan for year of 2020 was completed on
4 December 2020. The incentive objects for this incentives have 601 person in total, number of restricted shares granted
19,540,000 shares. For details, please refer to the relevant announcement (No.: 2020-048, 2020-064 and 2020-066)
published on Juchao Website (http://www.cninfo.com.cn)




                                                                                                                          23
                                                                   无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                 Section V. Environmental and Social Responsibility

I. Important environmental issues

The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
□Yes   √No
The company and its subsidiaries are not the key pollutant discharge units announced by the State Environmental
Protection Department. The company attaches great importance to environmental protection management. During
the production and operation process, the company strictly abides by relevant national and local environmental
protection laws, regulations and rules, and timely acquires, updates and conveys relevant environmental laws,
regulations and standards, and conducts the company’s internal daily environmental management based on new
regulations and standards., actively fulfills corporate environmental protection obligations, and implements national
energy conservation and emission reduction guidelines and policies.


II. Social responsibility

In strict accordance with the requirements of relevant national laws and regulations, while striving to pursue
economic benefits and protecting shareholders’ interests, the company actively protects the legitimate rights and
interests of employees, strengthens corporate culture construction, improves employee satisfaction, honestly
cooperates with suppliers and customers, establishes strategic cooperative relations with suppliers and customers
to achieve mutual benefit and win-win results. The company pays attention to environmental protection, actively
participates in social welfare undertakings, and actively fulfills social responsibility through a variety of ways, and
promotes the harmonious development of enterprises and society.




                                                                                                                                  24
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                      Section VI. Important Matters

I. Undertakings that the actual controller, shareholders, related party, buyers and the
Company have fulfilled during the reporting period and have not yet fulfilled by the end of
reporting period

□ Applicable   √ Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the period


II. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable   √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.


III. External guarantee out of the regulations

□ Applicable   √ Not applicable
No external guarantee out of the regulations occurred in the period.


IV. Appointment and non-reappointment (dismissal) of CPA

Whether the financial report of semi-annual report has been audited
□Yes   √No
The semi-annual report of the Company is unaudited.


V. Explanation from Board of Directors and Supervisory Committee for “Non-standard audit
report” that issued by CPA

□ Applicable   √ Not applicable


VI. Explanation from the BOD on the previous year’s “non-standard audit report”

□ Applicable   √ Not applicable




VII. Bankruptcy reorganization

□ Applicable   √ Not applicable
No bankruptcy reorganization occurred during the reporting period.




                                                                                                                                      25
                                                                               无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


VIII. Litigations

Major litigations and arbitrations
□ Applicable   √ Not applicable
No major litigations and arbitrations occurred in the Period.


Other litigations
√ Applicable   □ Not applicable
                              Amount
                                             Whether                                                    Judgment
                              Related                                                    Trial Results
                                             Formed                                                    Implementat
Basic Situation of Litigation to the                      Progress of Litigation        and Effects of               Disclosure    Disclosure
                                             Accrued                                                      ion of
       (Arbitration)            Case                          (Arbitration)               Litigation                    Date         Index
                                             Liabiliti                                                  Litigation
                              (10’000                                                   (Arbitration)
                                                es                                                     (Arbitration)
                               Yuan)
                                                         By      the     company’s
                                                         application             for
                                                         reconsideration,
                                                         Shenzhen Intermediate
On March 6, 2017, the
                                                         People's Court deemed
company received the civil
                                                         the total assets that
ruling
                                                         Cinda Company applied
No.(2016)Y03MC2490 and
                                                         for preservation to be
No.(2016)       Y03MC2492
                                                         RMB 217,027,697.23.
from Shenzhen Intermediate
                                                         The total value of 15.3
People's Court about the
                                                         million shares of SDEC
dispute case that the
                                                         Stock and 4.71 million
plaintiff applicant China
                                                         shares      of     Miracle
Cinda Asset Management
                                                         Automation held by the
Co., Ltd. Shenzhen Branch
                                                         company has exceeded
(hereinafter referred to as
                                                         the total assets that
“Cinda          Company”)                                                                                                       (Announceme
                                                         Cinda Company applied
appealed the respondent                                                                This litigation                            nt No.:
                                                         for           preservation,
Weifu High Technology and                                                              will not affect                            2017-002)
                                                         therefore,       3,560,898                       Not     yet
other seven respondents and                                                            the company’s                 8 March     published on
                                    21,703      N        shares of SDEC Stock                             implemente
the shareholders of the third                                                          daily operating                2017        Juchao
                                                         held by the company                              d
party    Hejun     Company                                                             activities for the                         Website
                                                         was unfrozen. Up to the
damaged the interests of                                                               time being                                 (www.cninfo.
                                                         end of the reporting
corporate creditors, which                                                                                                        com.cn)
                                                         period, the company’s
adopted the mandatory
                                                         frozen assets were as
measures to freeze the assets
                                                         follows: 4.71 million
with value of RMB 217
                                                         shares      of    Miracles
million under the name of
                                                         Automation held by the
the Company and other
                                                         company and its fruits,
seven     respondents    and
                                                         and 11,739,102 shares
Hejun Company. Freeze
                                                         of SDEC Stock held by
4.71 million shares of
                                                         the company and its
Miracle Automation and
                                                         fruits. At present, this
15.3 million shares of
                                                         litigation is in the first
SDEC Stock held by the
                                                         instance (the first trial
company.
                                                         held on 24 Sept. 2017,
                                                         and follow trial will
                                                         wait for notice by the
                                                         court).



                                                                                                                                                26
                                                                      无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                                 The     Company        has
                                                 applied      to     Futian
                                                 People's      Court     of
                                                 Shenzhen               for
                                                 compulsory liquidation
                                                 with Hejun Company.
                                                 The civil ruling paper
                                                                                                                         (Announceme
                                                 (Yue (0304) QS [2017]
                                                                                                                         nt No.:
The Company has applied to                       No. 5) made by               There is no
                                                                                                                         2017-023)
Futian People's Court of                         Shenzhen            Futian    impact on daily Relevant
                                                                                                              6 Dec.     published on
Shenzhen for compulsory             3,300   N    District People’s Court      operation         works are in
                                                                                                              2017       Juchao
liquidation with Hejun                           ruled      that     Hejun     activities of the process
                                                                                                                         Website
Company                                          Company should be             Company
                                                                                                                         (www.cninfo.
                                                 made          compulsory
                                                                                                                         com.cn)
                                                 liquidation.          The
                                                 Company will actively
                                                 cooperate with the court
                                                 to    work      on     the
                                                 liquidation to protect its
                                                 legitimate rights and
                                                 interests.


IX. Penalty and rectification
□ Applicable   √ Not applicable
No penalty and rectification for the Company in reporting period.


X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable   √ Not applicable


XI. Major related party transaction
1. Day-to-day related party transaction

√ Applicable   □ Not applicable


                                                                                             Wheth
                                                                                                er
                           Content           Relat    Related              Trading            over    Clearin
                                                                Proporti
                  Type of    of                ed       party               limit              the    g form Availabl Date
                                    Pricing                       on in
Relate Relations related related              party transaction            approve           appro       for e similar of     Index of
                                    principl                     similar
d party   hip    transacti party             transa amount (in             d (in 10            ved    related market disclos disclosure
                                       e                        transacti
                    on    transacti           ction 10 thousand           thousand           limite   transac price    ure
                                                                   ons
                             on               price    Yuan)                Yuan)             d or      tion
                                                                                               not
                                                                                             (Y/N)


                Procure Procure
                                                                                                      Accord
                ment of ment of
     Associate                     Fair Mark                                                           ing to        20      Notice
 WFP             goods goods                                                                                  Market
         d                        market   et              1,885.25     0.26%        4,200     N         the         April   No:
  M               and      and                                                                                price
     enterprise                   pricing price                                                       contrac        2021    2021-012
                 labor    labor
                                                                                                          t
                services services



                                                                                                                                     27
                                                                  无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Associate
          d        Procure Procure
                                                                                        Accord
     enterprise,   ment of ment of
                                      Fair Mark                                          ing to        20      Notice
     controllin     goods goods                                                                 Market
RBCD                                 market   et      21,844.48    3.04%   33,500   N      the         April   No:
          g          and      and                                                               price
                                     pricing price                                      contrac        2021    2021-012
     subsidiary     labor    labor
                                                                                            t
     of Robert     services services
       Bosch
                                                                                        Accord
     Associate
                Procure Procure Fair Mark                                                ing to        20      Notice
         d                                                                                      Market
WFEC            ment of ment of market et             90,577.08 12.59% 165,000      N      the         April   No:
     enterprise                                                                                 price
                 goods goods pricing price                                              contrac        2021    2021-012
     of WFLD
                                                                                            t
                  Procure Procure
        Second                                                                          Accord
Robert            ment of ment of
         largest                     Fair Mark                                           ing to        20      Notice
Bosch              goods goods                                                                  Market
       sharehold                    market   et        11,566.6    1.61%   21,500   N      the         April   No:
Comp                and      and                                                                price
        er of the                   pricing price                                       contrac        2021    2021-012
 any               labor    labor
       Company                                                                              t
                  services services
                                                                                        Accord
Shinw
       Associate Procure Procure Fair Mark                                               ing to        20      Notice
  ell                                                                                           Market
           d      ment of ment of market et                                  100    N      the         April   No:
Autom                                                                                           price
       enterprise goods goods pricing price                                             contrac        2021    2021-012
 obile
                                                                                            t
                                                                                        Accord
                   Sales of Sales of
    Associate                         Fair Mark                                          ing to        20      Notice
WFP                 goods goods                                                                 Market
        d                            market   et        1,974.2    0.22%    4,500   N      the         April   No:
 M                   and      and                                                               price
    enterprise                       pricing price                                      contrac        2021    2021-012
                   services services
                                                                                            t
     Associate
          d
                                                                                        Accord
     enterprise, Sales of Sales of
                                    Fair Mark                                            ing to        20      Notice
     controllin goods goods                                                                     Market
RBCD                               market   et       225,096.75 24.91% 320,000      N      the         April   No:
          g        and      and                                                                 price
                                   pricing price                                        contrac        2021    2021-012
     subsidiary services services
                                                                                            t
     of Robert
       Bosch

                                                                                        Accord
     Associate Sales of Sales of
                                  Fair Mark                                              ing to        20      Notice
         d      goods goods                                                                     Market
WFEC                             market   et            358.15     0.04%    2,500   N      the         April   No:
     enterprise and       and                                                                   price
                                 pricing price                                          contrac        2021    2021-012
     of WFLD services services
                                                                                            t

        Second                                                                          Accord
Robert            Sales of Sales of
         largest                     Fair Mark                                           ing to        20      Notice
Bosch              goods goods                                                                  Market
       sharehold                    market   et        64,919.4    7.18% 122,000    N      the         April   No:
Comp                and      and                                                                price
        er of the                   pricing price                                       contrac        2021    2021-012
 any              services services
       Company                                                                              t

                                                                                        Accord
Shinw
       Associate                     Fair Mark                                           ing to        20      Notice
  ell             Sales of Sales of                                                             Market
           d                        market   et            2.93              100    N      the         April   No:
Autom              goods goods                                                                  price
       enterprise                   pricing price                                       contrac        2021    2021-012
 obile
                                                                                            t



                                                                                                                      28
                                                              无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Associate
          d
                            Technic                                                Accord
     enterprise,
                               al    Fair Mark                                      ing to        20      Notice
     controllin                                                                            Market
RBCD             Other      service market   et                          100   N      the         April   No:
          g                                                                                price
                              fee   pricing price                                  contrac        2021    2021-012
     subsidiary
                            payable                                                    t
     of Robert
       Bosch
     Associate
                       Payment
          d
                           of                                                      Accord
     enterprise,
                       technica Fair Mark                                           ing to        20      Notice
     controllin                                                                            Market
RBCD             Other      l   market et                                300   N      the         April   No:
          g                                                                                price
                       commis pricing price                                        contrac        2021    2021-012
     subsidiary
                       sion fee                                                        t
     of Robert
                          etc.
       Bosch
                          Payment
        Second                of                                                   Accord
Robert
         largest          technica Fair Mark                                        ing to        20      Notice
Bosch                                                                                      Market
       sharehold    Other      l   market et         412.39              700   N      the         April   No:
Comp                                                                                       price
        er of the         commis pricing price                                     contrac        2021    2021-012
 any
       Company            sion fee                                                     t
                             etc.

        Second                                                                     Accord
Robert
         largest            Sales of Fair Mark                                      ing to        20      Notice
Bosch                                                                                      Market
       sharehold    Other    fixed market    et       27.23                    Y      the         April   No:
Comp                                                                                       price
        er of the            assets pricing price                                  contrac        2021    2021-012
 any
       Company                                                                         t

                                                                                   Accord
     Associate               Rental
                                      Fair Mark                                     ing to        20      Notice
         d                    fees                                                         Market
WFEC                Other            market   et                         300   N      the         April   No:
     enterprise             receivab                                                       price
                                     pricing price                                 contrac        2021    2021-012
     of WFLD                   le
                                                                                       t

     Associate
          d
                                                                                   Accord
     enterprise,            Purchas
                                     Fair Mark                                      ing to        20      Notice
     controllin               e of                                                         Market
RBCD             Other              market   et       52.84                    Y      the         April   No:
          g                  fixed                                                         price
                                    pricing price                                  contrac        2021    2021-012
     subsidiary              assets
                                                                                       t
     of Robert
       Bosch

        Second                                                                     Accord
Robert                      Purchas
         largest                     Fair Mark                                      ing to        20      Notice
Bosch                         e of                                                         Market
       sharehold    Other           market   et       59.95                    Y      the         April   No:
Comp                         fixed                                                         price
        er of the                   pricing price                                  contrac        2021    2021-012
 any                         assets
       Company                                                                         t

                            Technic
                                                                                   Accord
     Associate                 al
                                     Fair Mark                                      ing to        20      Notice
         d                  service                                                        Market
WFEC                Other           market   et                          200   N      the         April   No:
     enterprise               fee                                                          price
                                    pricing price                                  contrac        2021    2021-012
     of WFLD                payable
                                                                                       t
                              etc.


                                                                                                                 29
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                                                                                    Accord
     Associate
                              Sales of Fair Mark                                                     ing to        20      Notice
         d                                                                                                  Market
WFEC                 Other     fixed market    et              41.46                        Y          the         April   No:
     enterprise                                                                                             price
                               assets pricing price                                                 contrac        2021    2021-012
     of WFLD
                                                                                                        t
Total                                      --      --     418,818.71      --     675,000    --        --      --     --        --
Detail of sales return with major
                                       Not applicable
amount involved
                                       Being deliberated and approved by AGM of 2020, total day-to-day related party transaction
                                       for year of 2021 predicted as 6750 million Yuan, actually 4188.1871 million Yuan occurred in
                                       the Period, the related transaction classified according to types are as: 1. it estimated that
Report the actual implementation of
                                       procurement of goods and labor service from related party in 2021 will up to 2243 million
the day-to-day related transactions
                                       Yuan, while 1258.7341 million Yuan occurred actually in the Period; 2. it estimated that sales
which were projected about their
                                       of goods and labor service to related party in 2021 will up to 4491 million Yuan, actually
total amount by types during the
                                       2923.5143 million Yuan occurred during the reporting period for the explosive growth of
reporting period (if applicable)
                                       demand in commercial vehicle market, especially for heavy trucks; 3. it estimated that other
                                       related transactions with related party for year of 2021 will up to 16 million Yuan while
                                       5.9387 million Yuan actually occurred.
Reasons for major differences
between trading price and market       Not applicable
reference price (if applicable)


2. Related party transactions of assets acquisition and sold

□ Applicable   √ Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period


3. Related party transactions of mutual investment outside

□ Applicable   √ Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.


4. Contact of related party credit and debt

□ Applicable   √ Not applicable
The Company had no contact of related party credit and debt in the reporting period.

5. Contact with the related finance companies and finance companies that controlled by the Company

□ Applicable   √ Not applicable
There are no deposits, loans, credits or other financial business between the Company and the finance companies with related
relationships or between the finance companies controlled by the Company and related parties

6. Other material related party transactions

□ Applicable   √ Not applicable
The company had no other material related party transactions in reporting period.




                                                                                                                                    30
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


 XII. Significant contract and implementations

 1. Trusteeship, contract and leasing

 (1) Trusteeship

 □ Applicable       √ Not applicable
 No trusteeship occurred during the reporting period


 (2) Contract

 □ Applicable       √ Not applicable
 No contract occurred during the reporting period


 (3) Leasing

 □ Applicable        √ Not applicable
 No leasing occurred during the reporting period


 2. Material guarantees

 □ Applicable       √ Not applicable
 No material guarantees occurred during the reporting period

 3. Trust financing

 √ Applicable       □ Not applicable


                                                                                                                     Unit: 10’000 yuan

                                                                      Outstanding      Amount overdue       Impairment for the overdue
              Type                Capital sources Amount occurred
                                                                       balance          for collection        financial management
Bank Wealth Management           Own funds             296,300.00         108,672.00                    0                                 0
Brokerage financial
                                 Own funds              95,000.00          95,000.00                    0                                 0
products
Trust financial products         Own funds             315,079.00         284,186.00                    0                                 0
Other types                      Own funds              87,349.00          87,349.00                    0                                 0
Total                                                  793,728.00         575,207.00                    0                                 0


 Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
 √ Applicable       □ Not applicable
                                                                                                                     Unit: 10’000 yuan




                                                                                                                                    31
                                                                     无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                                                                                    Amo
                                                                                                     unt
                                                                                                      of
                                                                                                    reser
                                                                                                      ve            Whe
                                                                                                            Whe
                                                                                                     for             ther
                                                                                                             ther
                                                                                                    deva             has    Summary
                                                  Capi                                                      appr
                                                                        Anticipa                    luati            entr      of the
Truste                                             tal          Refere                                      oved
                         Sour                          Criteria            ted   Actual    Actual    on               ust   items and
   e     Trus                                     inve            nce                                         by
                         ce of Start         End          for            income gains/los collected of               fina     related
institut tee Type Amount                          stme          annual                                      legal
                         fund date           date       fixing              (if  ses in gains/losse with             nce       query
 ion r type                                         nt          rate of                                     proc
                           s                           reward           applicab period s in period draw            plan     index (if
 name                                             purp          return                                      edur
                                                                           le)                       ing               in   applicable
                                                   ose                                                         e
                                                                                                      in              the         )
                                                                                                            (Y/N
                                                                                                     the            futur
                                                                                                               )
                                                                                                    Year                e
                                                                                                      (if
                                                                                                    appli
                                                                                                    cabl
                                                                                                      e)
                                                           The
            Non-g                                  Ban
                                                           agreeme
            uarant                                 k                                                                        Notice
                                                           nt                            Collected
            eed             Own                    Weal                                                                     No.:
        Ban                      2021-0 2021-0             perform 2.95%                 according
Bank        floatin 661,933 fund                   th                    3543.94 3543.94                    Y       Y       2021-014
        k                        3-02 9-17                 ance-bas  -4%                 to the
            g               s                      Man                                                                      on 20
                                                           ed                            contract
            incom                                  age                                                                      April 2021
                                                           compens
            e                                      ment
                                                           ation
                                                   Coll
                                                           The
               Non-g                               ectiv
                                                           agreeme
               uarant                              e                                                                        Notice
                                                           nt                              Collected
Securit        eed              Own                asset                                                                    No.:
        Secu                         2021-0 2022-0         perform 4.2%-                   according
ies            floatin   58,000 fund               s                     1,141.48 1,141.48                  Y       Y       2021-014
        rities                       1-12 6-28             ance-bas   6%                   to the
trader         g                s                  man                                                                      on 20
                                                           ed                              contract
               incom                               age                                                                      April 2021
                                                           compens
               e                                   ment
                                                           ation
                                                   plan
                                                           The
             Non-g
                                                           agreeme
             uarant                                Coll                                                                     Notice
                                                           nt                              Collected
             eed             Own                   ectio                                                                    No.:
        Trus                      2021-0 2023-0            perform 3.3%-                   according
Trust        floatin 113,880 fund                  n                     8,756.01 8,756.01                  Y       Y       2021-014
        t                         1-08 6-25                ance-bas   8%                   to the
             g               s                     trust                                                                    on 20
                                                           ed                              contract
             incom                                 plan                                                                     April 2021
                                                           compens
             e
                                                           ation
      Othe
      r                                                 The
               Non-g
      prof                                              agreeme
               uarant                                                                                                       Notice
      essio                                        Fun nt                               Collected
               eed              Own                                                                                         No.:
      nal                            2021-0 2025-0 d    perform 5.3%-                   according
Other          floatin   35,580 fund                                  1,044.44 1,044.44                     Y       Y       2021-014
      fina                           2-08 7-01 prod ance-bas 7.8%                       to the
               g                s                                                                                           on 20
      ncial                                        ucts ed                              contract
               incom                                                                                                        April 2021
      instit                                            compens
               e
      utio                                              ation
      ns



                                                                                                                                  32
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                                                            14,485.8 14,485.8
Total                 869,393    --    --      --     --      --      --                            --     --   --     --
                                                                                   7        7

 Entrust financial expected to be unable to recover the principal or impairment might be occurred
 □ Applicable   √ Not applicable


 4.Significant contracts for daily operation

 □ Applicable   √ Not applicable


 5.Other significant contract

 □ Applicable   √ Not applicable
 The company had no other significant contract in the reporting period.


 XIII. Description of other significant matters

 □ Applicable   √ Not applicable
 The company had no other significant matters that needs description in the reporting period.


 XIV. Important event of the subsidiaries

 □ Applicable   √ Not applicable




                                                                                                                            33
                                                                           无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




   Section VII. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital
1. Changes in Share Capital
                                                                                                                                Unit: share

                                   Before the Change               Increase/Decrease in the Change (+, -)              After the Change
                                                                                   Public
                                                               New                reserve
                                                     Proporti          Bonus                                                       Proportio
                                    Amount                    shares              transfer Others Subtotal            Amount
                                                       on              shares                                                         n
                                                              issued             into share
                                                                                   capital
I. Restricted shares                    19,620,830    1.94%                                    4,059        4,059     19,624,889      1.94%
 1. State-owned shares
 2. State-owned legal
person’s shares
 3. Other domestic shares               19,620,830    1.94%                                    4,059        4,059     19,624,889      1.94%
   Including: Domestic
   legal person’s shares
   Domestic natural
                                        19,620,830    1.94%                                    4,059        4,059     19,624,889      1.94%
   person’s shares
 4. Foreign shares
   Including: Foreign
   legal person’s shares
     Foreign natural
person’s shares
II. Unrestricted shares             989,329,740 98.06%                                        -4,059    -4,059       989,325,681    98.06%
 1. RMB ordinary shares             816,949,740 80.97%                                        -4,059    -4,059       816,945,681    80.97%
 2. Domestically listed
                                    172,380,000 17.09%                                                               172,380,000    17.09%
foreign shares
 3. Overseas listed foreign
shares
 4. Others
III. Total shares                 1,008,950,570 100.00%                                                             1,008,950,570 100.00%

Reasons for share changed
□ Applicable       √ Not applicable
Approval of share changed
□ Applicable       √ Not applicable
Ownership transfer of share changed
□ Applicable       √ Not applicable
Progress of shares buy-back
□ Applicable       √ Not applicable



                                                                                                                                           34
                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable     √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable     √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable     √ Not applicable


2. Changes of lock-up stocks
√ Applicable     □ Not applicable
                                                                                                                                   Unit: share

                    Opening shares Shares released Restricted Shares             Ending shares          Restricted
   Shareholders                                                                                                         Date for released
                      restricted     in Period     increased in Period             restricted            reasons
                                                                                                    Outgoing after      As required by
Shi Xingyuan                   9,505                0                   3,168              12,673
                                                                                                    the renewal         the rules
                                                                                                    Outgoing after      As required by
Zhou Weixing                122,674                 0                     891             123,565
                                                                                                    the renewal         the rules
Total                       132,179                 0                   4,059             136,238            --                    --


II. Securities issuance and listing
□ Applicable     √ Not applicable


III. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                              Unit: share

Total common stock shareholders in                               Total preference shareholders with voting rights
                                                        69,815                                                                              0
reporting period-end                                             recovered at end of reporting period (if applicable)

                  Particulars about common shares held above 5% by shareholders or top ten common shareholders

                                                        Amount of                                                        Information of
                                                                                                        Amount of
                                                         common                    Amount of                             shares pledged,
                                            Proportion                                                    common
                                 Nature of              shares held Changes in restricted                               tagged or frozen
 Full name of Shareholders                   of shares                                                  shares held
                                shareholder            at the end of report period common
                                               held                                                       without
                                                         reporting                 shares held                          State of        Amoun
                                                                                                         restriction
                                                           period                                                        share            t

Wuxi Industry Development State-owned
                                               20.22% 204,059,398                    0              0   204,059,398
Group Co., Ltd.           corporate

                               Foreign
ROBERT BOSCH GMBH                              14.16% 142,841,400                    0              0   142,841,400
                               corporate

Hong Kong Securities           Foreign
                                                5.80% 58,474,174           -6,528,898               0    58,474,174
Clearing Company               corporate

BBH BOS S/A FIDELITY           Foreign
                                                1.57% 15,833,515             -260,000               0    15,833,515
FD - CHINA FOCUS FD            corporate

Basic Pension Insurance
                               Other            1.20% 12,105,618              942,312               0    12,105,618
Fund- 1003


                                                                                                                                            35
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


FIDELITY INVMT TRT
                               Foreign
FIDELITY INTL SMALL                                0.70%   7,043,386      -296,200                 0     7,043,386
                               corporate
CAP FUND
NSSF - 116                     Other               0.58%   5,865,698     5,865,698                 0     5,865,698
                               State-owned
Haitong Securities Co., Ltd.                       0.49%   4,965,301          1,700                0     4,965,301
                               corporate
NSSF - 413                     Other               0.48%   4,830,000    -1,020,000                 0     4,830,000
GTJA- Allianz Fund - China
Pacific Life Insurance Co.,
Ltd. - With-profit insurance
- GTJA- Allianz Fund CPIC
                             Other                 0.47%   4,714,900     1,801,800                 0     4,714,900
Equity Relative Income
(Guaranteed Dividend)
Single Asset Management
Plan
Strategy investor or general legal person
becoming the top 10 common
                                             N/A
shareholders by placing new shares (if
applicable)
                                       Among the aforesaid shareholders, there has no associated relationship between Wuxi
Explanation on associated relationship Industry Development Croup Co., Ltd. and other shareholders, the first largest
among the aforesaid shareholders       shareholder of the Company; and they do not belong to the persons acting in concert
                                       regulated by the Management Measure for the acquisition of Listed Company.
Description of the above shareholders in
relation to delegate/entrusted voting rights N/A
and abstention from voting rights.
Special note on the repurchase account
among the top 10 shareholders (if            N/A
applicable)
                               Particular about top ten shareholders with un-lock up common stocks held
                                                                         Amount of common                     Type of shares
                        Shareholders’ name                              shares held without
                                                                       restriction at Period-end          Type             Amount

                                                                                                   RMB common
Wuxi Industry Development Group Co., Ltd.                                          204,059,398                             204,059,398
                                                                                                   shares

                                                                                                   RMB common
                                                                                                                           115,260,600
                                                                                                   shares
ROBERT BOSCH GMBH                                                                  142,841,400
                                                                                                   Domestically listed
                                                                                                                               27,580,800
                                                                                                   foreign shares

                                                                                                   RMB common
Hong Kong Securities Clearing Company                                                 58,474,174                               58,474,174
                                                                                                   shares

                                                                                                   Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                              15,833,515                               15,833,515
                                                                                                   foreign shares

                                                                                                   RMB common
Basic Pension Insurance Fund- 1003                                                    12,105,618                               12,105,618
                                                                                                   shares

                                                                                                   Domestically listed
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND                                        7,043,386                                7,043,386
                                                                                                   foreign shares

                                                                                                   RMB common
NSSF - 116                                                                             5,865,698                                5,865,698
                                                                                                   shares


                                                                                                                                       36
                                                                      无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                                                                                                  RMB common
Haitong Securities Co., Ltd.                                                          4,965,301                              4,965,301
                                                                                                  shares
                                                                                                  RMB common
NSSF - 413                                                                            4,830,000                              4,830,000
                                                                                                  shares
GTJA- Allianz Fund - China Pacific Life Insurance Co., Ltd. -
                                                                                                  RMB common
With-profit insurance - GTJA- Allianz Fund CPIC Equity Relative                       4,714,900                              4,714,900
                                                                                                  shares
Income (Guaranteed Dividend) Single Asset Management Plan
                                                                     Among the aforesaid shareholders, there has no associated
                                                                     relationship between Wuxi Industry Development Croup Co.,
Expiation on associated relationship or consistent actors within the
                                                                     Ltd. and other shareholders, the first largest shareholder of the
top 10 un-lock up common shareholders and between top 10
                                                                     Company; and they do not belong to the persons acting in
un-lock up common shareholders and top 10 common shareholders
                                                                     concert regulated by the Management Measure for the
                                                                     acquisition of Listed Company.
Explanation on top 10 common shareholders involving margin
                                                                     Not applicable
business (if applicable)

Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have no
buy-back agreement dealing in reporting period.


IV. Changes of shares held by directors, supervisors and senior executives
√Applicable      □Not applicable

                                              Amount of Amount of                                       Amount of
                                     Shares                                   Amount of                                  Amount of
                                                shares    shares    Shares                               restricted
                                     held at                                  restricted                              restricted shares
                            Working           increased decreased   held at                                shares
   Name           Title             period-be                                   shares                                   granted at
                             status             in this   in this period-end                            granted in
                                       gin                                    granted at                                 period-end
                                                period    period   (Share)                              this period
                                     (Share)                                 period-begin                                  (Share)
                                               (Share)   (Share)                                         (Share)
                                                                               (Share)
Wang                       Currently
         Chairman                       420,781                              420,781        400,000                            400,000
Xiaodong                   in office
Kirsch    Vice             Currently
                                               0                                    0               0                                 0
Christoph Chairman         in office
               Vice
Xu                         Currently
               Chairman,                363,000                              363,000        350,000                            350,000
Yunfeng                    in office
               GM
           Director,
           Executive
           Deputy
           General         Currently
Ou Jianbin                              290,000                              290,000        280,000                            280,000
           Manager         in office
           and
           financing
           Charger
Chen                       Currently
               Director                        0                                    0               0                                 0
Yudong                     in office
                           Currently
Zhao Hong Director                             0                                    0               0                                 0
                           in office


                                                                                                                                      37
                                               无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


                         Currently
Huang Rui Director                        0              0           0                          0
                         in office
            Independent Currently
Yu Xiaoli                                 0              0           0                          0
            Director    in office
            Independent Currently
Xing Min                                  0              0           0                          0
            Director    in office
Feng        Independent Currently
                                          0              0           0                          0
Kaiyan      Director    in office
Pan         Independent Currently
                                          0              0           0                          0
Xinggao     Director    in office
            Chairman of
Ma          the         Currently
                                          0              0           0                          0
Yuzhou      Supervisory in office
            Committee
                         Currently
Chen Ran Supervisor                    1,000          1,000          0                          0
                         in office
Liu                      Currently
            Supervisor                    0              0           0                          0
Songxue                  in office
Miao                     Currently
            Deputy GM                290,000        290,000     280,000                    280,000
Yuming                   in office
                         Currently
Xu Sheng Deputy GM                   280,000        280,000     280,000                    280,000
                         in office
                         Currently
Rong Bin Deputy GM                   280,000        280,000     280,000                    280,000
                         in office
           Deputy
           General
                        Currently
Liu Jinjun Manager,                  280,000        280,000     280,000                    280,000
                        in office
           Secretary of
           the Board
            Chief        Currently
Li Gang                              280,000        280,000     280,000                    280,000
            engineer     in office
Rudolf      Vice         Leave
                                          0              0           0                          0
Maier       Chairman     office
Zhang                    Leave
         Director                         0              0           0                          0
Xiaogeng                 office
Hua                      Leave
            Director                      0              0           0                          0
Wanrong                  office
Lou         Independent Leave
                                          0              0           0                          0
Diming      Director    office
Jin         Independent Leave
                                          0              0           0                          0
Zhangluo    Director    office
Xu          Independent Leave
                                          0              0           0                          0
Xiaofang    Director    office
         Chairman of
Shi      the         Leave
                                      12,673         12,673          0                          0
XingYuan Supervisory office
         Committee
                         Appointm
Zhou        Secretary of
                         ent and     123,565        123,565     120,000                    120,000
Weixing     the Board
                         dismissal


                                                                                                38
                                                                   无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


Total             --          --      2,621,019           0         0 2,621,019    2,550,000         0       2,550,000


V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period
□ Applicable     √ Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
□ Applicable     √ Not applicable
The Company had no change of actual controller during the reporting period




                                                                                                                    39
                                                     无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                     Section VIII. Preferred Stock

□ Applicable   √ Not applicable
The Company had no preferred stock in the Period.




                                                                                                      40
                                                   无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                    Section IX. Corporate Bonds

□ Applicable   √ Not applicable




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                                                                  无锡威孚高科技集团股份有限公司 2021 年半年度报告全文




                                          Section X. Financial Report

I. Audit report

Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited


II. Financial Statement

Statement in Financial Notes are carried in RMB/CNY


1. Consolidated Balance Sheet

Prepared by Weifu High-Technology Group Co., Ltd.

                                                          June 30, 2021
                                                                                                               Unit: yuan

                                   Item                                   June 30, 2021          December 31, 2020

Current assets:

     Monetary funds                                                           2,459,226,978.01         1,963,289,832.33

     Settlement provisions

     Capital lent

     Trading financial assets                                                 5,056,585,067.83         3,518,432,939.10

     Derivative financial assets

     Note receivable                                                          1,400,927,322.82         1,657,315,723.56

     Account receivable                                                       4,213,530,522.34         2,824,780,352.41

     Receivable financing                                                       595,411,852.58         1,005,524,477.88

     Accounts paid in advance                                                   169,390,131.32           151,873,357.76

     Insurance receivable

     Reinsurance receivables

     Contract reserve of reinsurance receivable

     Other account receivable                                                   489,891,879.53            54,209,580.88

        Including: Interest receivable

                    Dividend receivable                                         479,171,532.95            49,000,000.00

     Buying back the sale of financial assets

     Inventories                                                              2,269,721,200.22         2,877,182,174.64


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                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Contractual assets

     Assets held for sale

     Non-current asset due within one year

     Other current assets                                 64,570,470.49          2,137,921,113.61

Total current assets                                  16,719,255,425.14         16,190,529,552.17

Non-current assets:

     Loans and payments on behalf

     Debt investment

     Other debt investment

     Long-term account receivable

     Long-term equity investment                       5,010,523,270.10          4,801,488,290.97

     Investment in other equity instrument               285,048,000.00            285,048,000.00

     Other non-current financial assets                1,326,356,290.34          1,805,788,421.00

     Investment real estate                               20,124,766.49             20,886,681.62

     Fixed assets                                      2,903,123,563.06          2,882,230,191.08

     Construction in progress                            234,758,990.27            243,795,493.04

     Productive biological asset

     Oil and gas asset

     Right-of-use assets                                  19,558,033.46

     Intangible assets                                   429,503,272.15            454,412,947.69

     Expense on Research and Development

     Goodwill                                            246,048,556.15            257,800,696.32

     Long-term expenses to be apportioned                 14,892,509.54             15,062,171.09

     Deferred income tax asset                           332,500,153.28            198,393,501.50

     Other non-current asset                             237,495,903.07            195,259,441.73

Total non-current asset                               11,059,933,307.91         11,160,165,836.04

Total assets                                          27,779,188,733.05         27,350,695,388.21

Current liabilities:

     Short-term loans                                  1,209,809,417.24            302,238,600.05

     Loan from central bank

     Capital borrowed

     Trading financial liability

     Derivative financial liability

     Note payable                                      1,849,948,849.32          2,462,592,372.82



                                                                                               43
                                                   无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Account payable                                         3,963,025,385.39          4,100,984,240.39

     Accounts received in advance                                 439,949.43               4,071,236.87

     Contractual liability                                      57,488,324.87             81,717,387.25

     Selling financial asset of repurchase

     Absorbing deposit and interbank deposit

     Security trading of agency

     Security sales of agency

     Wage payable                                              181,036,807.25            332,421,811.82

     Taxes payable                                             149,846,901.47             67,493,690.29

     Other account payable                                     518,455,677.71            361,556,257.42

        Including: Interest payable                                 49,246.71                  4,862.22

                    Dividend payable                           155,601,810.00

     Commission charge and commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities due within one year                23,067,464.24             36,914,242.02

     Other current liabilities                                 273,728,160.41            222,871,087.33

Total current liabilities                                    8,226,846,937.33          7,972,860,926.26

Non-current liabilities:

     Insurance contract reserve

     Long-term loans                                             2,921,841.19              3,050,640.97

     Bonds payable

        Including: Preferred stock

                    Perpetual capital securities

     Lease liability                                            16,761,771.80

     Long-term account payable                                  33,265,082.11             39,479,218.17

     Long-term wages payable                                   181,980,293.94            181,980,293.94

     Accrual liability

     Deferred income                                           311,182,354.25            328,204,476.73

     Deferred income tax liabilities                            27,746,798.73             30,653,933.12

     Other non-current liabilities

Total non-current liabilities                                  573,858,142.02            583,368,562.93

Total liabilities                                            8,800,705,079.35          8,556,229,489.19

Owner’s equity:



                                                                                                     44
                                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Share capital                                                1,008,950,570.00          1,008,950,570.00

     Other equity instrument

        Including: Preferred stock

                     Perpetual capital securities

     Capital public reserve                                       3,331,593,434.63          3,294,242,368.28

     Less: Inventory shares                                         303,627,977.74            303,627,977.74

     Other comprehensive income                                      -4,796,181.08             13,916,619.47

     Reasonable reserve                                               2,527,617.02              2,333,490.03

     Surplus public reserve                                         510,100,496.00            510,100,496.00

     Provision of general risk

     Retained profit                                             13,890,386,805.30         13,756,102,424.62

Total owner’ s equity attributable to parent company            18,435,134,764.13         18,282,017,990.66

     Minority interests                                             543,348,889.57            512,447,908.36

Total owner’ s equity                                           18,978,483,653.70         18,794,465,899.02

Total liabilities and owner’ s equity                           27,779,188,733.05         27,350,695,388.21

Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin

2. Balance Sheet of Parent Company
                                                                                                    Unit: yuan

                                     Item                       June 30, 2021          December 31, 2020

Current assets:

     Monetary funds                                                 1,557,056,402.95         1,157,684,053.05

     Trading financial assets                                       5,001,412,685.72         3,452,348,980.19

     Derivative financial assets

     Note receivable                                                 383,773,330.42           422,246,979.39

     Account receivable                                             1,418,332,154.70          982,782,279.22

     Receivable financing

     Accounts paid in advance                                        115,538,581.67            75,650,090.49

     Other account receivable                                        657,946,549.38           197,335,714.63

        Including: Interest receivable                                    88,888.89               897,777.78

                     Dividend receivable                             466,859,940.06

     Inventories                                                     522,124,502.67           725,276,241.43

     Contractual assets

     Assets held for sale


                                                                                                           45
                                                   无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Non-current assets maturing within one year

     Other current assets                                        25,260,101.36         2,057,772,839.50

Total current assets                                           9,681,444,308.87        9,071,097,177.90

Non-current assets:

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term equity investments                              6,193,908,075.78        5,978,128,303.88

     Investment in other equity instrument                      209,108,000.00           209,108,000.00

     Other non-current financial assets                        1,326,356,290.34        1,805,788,421.00

     Investment real estate

     Fixed assets                                              1,764,631,011.53        1,758,198,856.53

     Construction in progress                                   156,009,477.52           154,741,266.85

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets                                           1,398,112.88

     Intangible assets                                          197,899,553.16           208,112,706.57

     Research and development costs

     Goodwill

     Long-term deferred expenses                                    423,749.70

     Deferred income tax assets                                 214,808,253.54            76,508,392.85

     Other non-current assets                                   160,824,514.24           117,013,906.01

Total non-current assets                                      10,225,367,038.69       10,307,599,853.69

Total assets                                                  19,906,811,347.56       19,378,697,031.59

Current liabilities:

     Short-term borrowings                                      276,950,888.89           102,088,888.89

     Trading financial liability

     Derivative financial liability

     Notes payable                                              466,681,799.56           448,901,718.36

     Account payable                                           1,433,742,247.32        1,265,845,068.26

     Accounts received in advance

     Contractual liability                                         5,567,973.02            6,209,575.73

     Wage payable                                               113,653,893.16           216,870,819.60

     Taxes payable                                              119,135,774.59            32,974,322.59



                                                                                                     46
                                                    无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Other accounts payable                                      513,989,296.54           339,096,991.12

        Including: Interest payable

                     Dividend payable                            155,601,810.00

     Liability held for sale

     Non-current liabilities due within one year

     Other current liabilities                                   243,945,307.78           182,611,991.54

Total current liabilities                                       3,173,667,180.86        2,594,599,376.09

Non-current liabilities:

     Long-term loans

     Bonds payable

        Including: Preferred stock

                     Perpetual capital securities

     Lease liability                                                1,519,779.90

     Long-term account payable

     Long term employee compensation payable                     176,245,345.03           176,245,345.03

     Accrued liabilities

     Deferred income                                             272,225,390.34           285,714,239.98

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                                    449,990,515.27           461,959,585.01

Total liabilities                                               3,623,657,696.13        3,056,558,961.10

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                                     3,446,257,738.38        3,407,732,016.61

     Less: Inventory shares                                      303,627,977.74           303,627,977.74

     Other comprehensive income

     Special reserve

     Surplus reserve                                             510,100,496.00           510,100,496.00

     Retained profit                                           11,621,472,824.79       11,698,982,965.62

Total owner’s equity                                          16,283,153,651.43       16,322,138,070.49

Total liabilities and owner’s equity                          19,906,811,347.56       19,378,697,031.59



                                                                                                      47
                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


3. Consolidated Profit Statement
                                                                                                                       Unit: yuan

                                              Item                                         2021 semi-annual    2020 semi-annual

I. Total operating income                                                                   9,037,691,756.24    6,594,403,624.56

     Including: Operating income                                                            9,037,691,756.24    6,594,403,624.56

             Interest income

             Insurance gained

             Commission charge and commission income

II. Total operating cost                                                                    8,179,064,974.32    6,098,234,750.74

     Including: Operating cost                                                              7,497,917,157.07    5,413,969,374.53

             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                                                                    38,209,494.32       31,961,549.15

             Sales expense                                                                    111,193,615.56      138,394,171.31

             Administrative expense                                                           266,226,378.32      336,984,661.28

             R&D expense                                                                      249,583,255.99      211,531,953.72

             Financial expense                                                                 15,935,073.06      -34,606,959.25

                 Including: Interest expenses                                                  14,244,003.27        5,800,553.09

                            Interest income                                                    16,673,615.70       43,053,210.79

     Add: Other income                                                                         23,433,211.68       43,932,417.68

          Investment income (Loss is listed with “-”)                                     1,105,771,532.34      923,574,526.61

          Including: Investment income on affiliated company and joint venture                962,736,510.68      785,533,710.72

                 The termination of income recognition for financial assets measured by
                                                                                                 -609,970.51         -408,092.36
amortized cost

          Exchange income (Loss is listed with “-”)

          Net exposure hedging income (Loss is listed with “-”)

          Income from change of fair value (Loss is listed with “-”)                        -86,131,772.46          258,157.65

          Loss of credit impairment (Loss is listed with “-”)                                 6,750,336.12       -3,622,549.31

          Losses of devaluation of asset (Loss is listed with “-”)                         -103,997,387.44      -52,807,909.47




                                                                                                                                  48
                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


            Income from assets disposal (Loss is listed with “-”)                          2,926,586.82         232,499.55

III. Operating profit (Loss is listed with “-”)                                         1,807,379,288.98   1,407,736,016.53

     Add: Non-operating income                                                                 488,184.66         164,150.94

     Less: Non-operating expense                                                               851,627.30       4,124,451.68

IV. Total profit (Loss is listed with “-”)                                              1,807,015,846.34   1,403,775,715.79

     Less: Income tax expense                                                              117,972,661.22      57,505,452.12

V. Net profit (Net loss is listed with “-”)                                             1,689,043,185.12   1,346,270,263.67

  (i) Classify by business continuity

     1.continuous operating net profit (net loss listed with ‘-”)                       1,689,043,185.12   1,346,270,263.67

     2.termination of net profit (net loss listed with ‘-”)

  (ii) Classify by ownership

     1.Net profit attributable to owner’s of parent company                              1,645,389,487.32   1,326,344,424.98

     2.Minority shareholders’ gains and losses                                             43,653,697.80      19,925,838.69

VI. Net after-tax of other comprehensive income                                             -18,712,800.55          4,618.33

  Net after-tax of other comprehensive income attributable to owners of parent company      -18,712,800.55          3,048.10

     (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 reclassified subsequently to
                                                                                            -18,712,800.55          3,048.10
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.Amount of financial assets re-classify to other comprehensive income

     4.Credit impairment provision for other debt investment

     5.Cash flow hedging reserve

     6.Translation differences arising on translation of foreign currency financial
                                                                                            -18,712,800.55          3,048.10
statements

     7.Other

  Net after-tax of other comprehensive income attributable to minority shareholders                                 1,570.23

VII. Total comprehensive income                                                           1,670,330,384.57   1,346,274,882.00



                                                                                                                           49
                                                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Total comprehensive income attributable to owners of parent Company                    1,626,676,686.77    1,326,347,473.08

     Total comprehensive income attributable to minority shareholders                          43,653,697.80      19,927,408.92

VIII. Earnings per share:

     (i) Basic earnings per share                                                                        1.66               1.32

     (ii) Diluted earnings per share                                                                     1.66               1.32

Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


4. Profit Statement of Parent Company

                                                                                                                       Unit: yuan

                                       Item                                     Semi-annual of 2021       Semi-annual of 2020

I. Operating income                                                                   3,220,943,476.43          2,336,262,373.08

     Less: Operating cost                                                             2,403,527,534.87          1,686,488,679.58

           Taxes and surcharge                                                          21,834,137.85             18,740,531.01

           Sales expenses                                                               17,546,893.57             13,053,690.12

           Administration expenses                                                     135,426,334.91            227,324,018.06

           R&D expenses                                                                 87,747,468.92             90,410,044.71

           Financial expenses                                                            -7,223,028.80            -40,808,506.49

                Including: Interest expenses                                              3,350,273.60             2,501,198.55

                            Interest income                                             13,656,977.09             39,756,148.10

     Add: Other income                                                                  15,396,596.15             35,239,425.50

           Investment income (Loss is listed with “-”)                              1,028,633,777.97           907,907,258.50

           Including: Investment income on affiliated Company and joint
                                                                                       831,855,487.43            708,709,791.17
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 “-”)                    -86,218,789.02              -403,481.50

           Loss of credit impairment (Loss is listed with “-”)                           780,808.33              -1,033,980.28

           Losses of devaluation of asset (Loss is listed with “-”)                   -10,358,756.04             -3,370,784.10

           Income on disposal of assets (Loss is listed with “-”)                        723,623.73               -174,293.98

II. Operating profit (Loss is listed with “-”)                                      1,511,041,396.23          1,279,218,060.23

     Add: Non-operating income                                                              56,000.29                 22,947.75

     Less: Non-operating expense                                                           575,906.72              3,443,673.01



                                                                                                                                50
                                                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


III. Total Profit (Loss is listed with “-”)                                        1,510,521,489.80          1,275,797,334.97

     Less: Income tax                                                                   76,926,523.99            57,174,946.95

IV. Net profit (Net loss is listed with “-”)                                       1,433,594,965.81          1,218,622,388.02

     (i) continuous operating net profit (net loss listed with ‘-”)                1,433,594,965.81          1,218,622,388.02

     (ii) termination of net profit (net loss listed with ‘-”)

V. Net after-tax of other comprehensive income

     (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 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.Amount of financial assets re-classify to other comprehensive
income

     4.Credit impairment provision for other debt investment

     5.Cash flow hedging reserve

     6.Translation differences arising on translation of foreign currency
financial statements

     7.Other

VI. Total comprehensive income                                                       1,433,594,965.81          1,218,622,388.02

VII. Earnings per share:

     (i) Basic earnings per share

     (ii) Diluted earnings per share


5. Consolidated Cash Flow Statement
                                                                                                                      Unit: yuan

                                           Item                                   Semi-annual of 2021     Semi-annual of 2020

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor services               7,104,973,474.71        5,676,491,804.78


                                                                                                                                51
                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Net increase of customer deposit and interbank deposit

     Net increase of loan from central bank

     Net increase of capital borrowed from other financial institution

     Cash received from original insurance contract fee

     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                                                           22,377,551.77         15,404,444.43

     Other cash received concerning operating activities                                  23,837,717.02         70,801,912.94

Subtotal of cash inflow arising from operating activities                               7,151,188,743.50     5,762,698,162.15

     Cash paid for purchasing commodities and receiving labor service                   5,800,001,521.45     4,122,764,678.30

     Net increase of customer loans and advances

     Net increase of deposits in central bank and interbank

     Cash paid for original insurance contract compensation

     Net increase of capital lent

     Cash paid for interest, commission charge and commission

     Cash paid for bonus of guarantee slip

     Cash paid to/for staff and workers                                                  769,474,843.18        630,754,424.71

     Taxes paid                                                                          241,303,901.65        314,691,082.22

     Other cash paid concerning operating activities                                     260,216,868.05        256,830,904.51

Subtotal of cash outflow arising from operating activities                              7,070,997,134.33     5,325,041,089.74

Net cash flows arising from operating activities                                          80,191,609.17        437,657,072.41

II. Cash flows arising from investing activities:

     Cash received from recovering investment                                           9,674,956,210.22     4,008,128,352.27

     Cash received from investment income                                                476,145,091.90      1,183,089,487.76

     Net cash received from disposal of fixed, intangible and other long-term
                                                                                            7,301,988.55        25,781,114.63
assets

     Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities                                    1,108,314.69

Subtotal of cash inflow from investing activities                                      10,159,511,605.36     5,216,998,954.66

     Cash paid for purchasing fixed, intangible and other long-term assets               312,048,305.49        218,473,940.03




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                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Cash paid for investment                                                           8,896,332,579.38        3,553,000,000.00

     Net increase of mortgaged loans

     Net cash received from subsidiaries and other units obtained

     Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities                                      9,208,380,884.87        3,771,473,940.03

Net cash flows arising from investing activities                                         951,130,720.49         1,445,525,014.63

III. Cash flows arising from financing activities:

     Cash received from absorbing investment

     Including: Cash received from absorbing minority shareholders’
investment by subsidiaries

     Cash received from loans                                                           1,107,957,631.62         245,289,418.04

     Other cash received concerning financing activities                                                            5,470,000.00

Subtotal of cash inflow from financing activities                                       1,107,957,631.62         250,759,418.04

     Cash paid for settling debts                                                        212,778,637.77          203,192,671.61

     Cash paid for dividend and profit distributing or interest paying                  1,385,111,066.13         747,748,424.37

     Including: Dividend and profit of minority shareholder paid by
                                                                                          13,970,282.31
subsidiaries

     Other cash paid concerning financing activities                                        6,919,876.01         300,007,852.84

Subtotal of cash outflow from financing activities                                      1,604,809,579.91        1,250,948,948.82

Net cash flows arising from financing activities                                         -496,851,948.29       -1,000,189,530.78

IV. Influence on cash and cash equivalents due to fluctuation in exchange rate             -3,408,171.79            4,663,278.76

V. Net increase of cash and cash equivalents                                             531,062,209.58          887,655,835.02

     Add: Balance of cash and cash equivalents at the period -begin                      944,946,018.70          820,498,653.85

VI. Balance of cash and cash equivalents at the period -end                             1,476,008,228.28        1,708,154,488.87

6. Cash Flow Statement of Parent Company
                                                                                                                       Unit: yuan

                                       Item                                        Semi-annual of 2021     Semi-annual of 2020

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor services                3,242,751,680.23        2,137,522,482.58

     Write-back of tax received

     Other cash received concerning operating activities                                  12,609,442.48           53,647,269.21

Subtotal of cash inflow arising from operating activities                               3,255,361,122.71        2,191,169,751.79

     Cash paid for purchasing commodities and receiving labor service                   1,994,221,184.67        1,258,667,867.50

     Cash paid to/for staff and workers                                                  437,457,769.95          356,095,444.60



                                                                                                                                 53
                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


     Taxes paid                                                                          113,149,540.45        199,611,845.20

     Other cash paid concerning operating activities                                      73,953,894.64        107,303,419.41

Subtotal of cash outflow arising from operating activities                              2,618,782,389.71     1,921,678,576.71

Net cash flows arising from operating activities                                         636,578,733.00        269,491,175.08

II. Cash flows arising from investing activities:

     Cash received from recovering investment                                           7,526,445,210.22     3,605,396,703.43

     Cash received from investment income                                                467,905,359.02      1,141,100,004.91

     Net cash received from disposal of fixed, intangible and other long-term
                                                                                            4,642,596.78         3,870,511.23
assets

     Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities                                 126,059,237.40        139,134,277.49

Subtotal of cash inflow from investing activities                                       8,125,052,403.42     4,889,501,497.06

     Cash paid for purchasing fixed, intangible and other long-term assets               168,425,236.10        113,826,331.79

     Cash paid for investment                                                           6,901,181,670.00     3,070,448,157.81

     Net cash received from subsidiaries and other units obtained

     Other cash paid concerning investing activities                                     135,221,125.00        150,000,000.00

Subtotal of cash outflow from investing activities                                      7,204,828,031.10     3,334,274,489.60

Net cash flows arising from investing activities                                         920,224,372.32      1,555,227,007.46

III. Cash flows arising from financing activities:

     Cash received from absorbing investment

     Cash received from loans                                                            276,862,000.00        100,000,000.00

     Other cash received concerning financing activities                                  30,000,000.00         21,620,000.00

Subtotal of cash inflow from financing activities                                        306,862,000.00        121,620,000.00

     Cash paid for settling debts                                                        102,000,000.00         60,000,000.00

     Cash paid for dividend and profit distributing or interest paying                  1,361,089,903.10       744,490,470.75

     Other cash paid concerning financing activities                                          48,290.60        316,627,852.84

Subtotal of cash outflow from financing activities                                      1,463,138,193.70     1,121,118,323.59

Net cash flows arising from financing activities                                       -1,156,276,193.70      -999,498,323.59

IV. Influence on cash and cash equivalents due to fluctuation in exchange rate             -1,128,178.25         4,152,072.50

V. Net increase of cash and cash equivalents                                             399,398,733.37        829,371,931.45

     Add: Balance of cash and cash equivalents at the period -begin                      651,188,544.53        532,115,862.26

VI. Balance of cash and cash equivalents at the period -end                             1,050,587,277.90     1,361,487,793.71




                                                                                                                           54
                                                                                                                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
           7. Statement of Changes in Owners’ Equity (Consolidated)

           Current Amount

                                                                                                                                                                                             Unit: yuan

                                                                                                        Semi-annual of 2021
                                                                       Owners’ equity attributable to the parent Company
                                     Other
                                     equity
                                   instrument
                                         Pe
                                         rp                                                                            Prov
    Item                                 etu                                                                           ision                                                 Minority        Total owners’
                                   Pr                                 Less:        Other                                                           Ot
                                          al                                                Reasonable                   of                                                  interests          equity
                Share capital      efe          Capital reserve    Inventory    comprehensi            Surplus reserve         Retained profit     he     Subtotal
                                         ca Ot                                               reserve                   gene
                                   rre                               shares      ve income                                                          r
                                         pit he                                                                          ral
                                    d                                                                                   risk
                                          al r
                                   sto
                                         se
                                   ck
                                         cu
                                         riti
                                         es
I. The
ending
balance of      1,008,950,570.00                 3,294,242,368.28 303,627,977.74 13,916,619.47 2,333,490.03   510,100,496.00   13,756,102,424.62        18,282,017,990.66   512,447,908.36   18,794,465,899.02
the previous
year

Add:
Changes of
accounting
policy


Error
correction of
the last
period


                                                                                                                                                                                                    55
                                                                                                                           无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
Enterprise
combine
under the
same control
Other
II. The
beginning
balance of       1,008,950,570.00   3,294,242,368.28 303,627,977.74 13,916,619.47 2,333,490.03   510,100,496.00   13,756,102,424.62     18,282,017,990.66   512,447,908.36   18,794,465,899.02
the current
year


III. Increase/
Decrease in
the period                                                          -18,712,800.5
                                      37,351,066.35                                 194,126.99                      134,284,380.68        153,116,773.47     30,900,981.21     184,017,754.68
(Decrease is                                                                    5
listed with
“-”)



(i) Total
                                                                    -18,712,800.5
comprehensi                                                                                                        1,645,389,487.32      1,626,676,686.77    43,653,697.80    1,670,330,384.57
                                                                                5
ve income



(ii) Owners’
devoted and
                                      37,351,066.35                                                                                        37,351,066.35      1,174,655.42      38,525,721.77
decreased
capital


1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of

                                                                                                                                                                                    56
                                        无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
other equity
instruments
3. Amount
reckoned
into owners
               37,351,066.35                            37,351,066.35     1,174,655.42       38,525,721.77
equity with
share-based
payment
4. Other
(iii) Profit
                               -1,513,341,439.50     -1,513,341,439.50   -13,970,282.31   -1,527,311,721.81
distribution
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution
for owners
                               -1,513,341,439.50     -1,513,341,439.50   -13,970,282.31   -1,527,311,721.81
(or
shareholders
)
4. Other

(iv)
Carrying
forward
internal
owners’
equity




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                无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

1. Capital
reserves
conversed to
capital
(share
capital)


2. Surplus
reserves
conversed to
capital
(share
capital)


3.
Remedying
loss with
surplus
reserve


4.
Carry-over
retained
earnings
from the
defined
benefit plans


5.
Carry-over
retained
earnings
from other
comprehensi
ve income
6. Other

                                                                 58
                                                                                                                          无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

(v)
Reasonable                                                                         194,126.99                                                194,126.99         42,910.30         237,037.29
reserve

1.
Withdrawal
                                                                                12,481,928.66                                             12,481,928.66      1,203,727.42      13,685,656.08
in the report
period

2. Usage in
the report                                                                      12,287,801.67                                             12,287,801.67      1,160,817.12      13,448,618.79
period

(vi) Others                                                                                                           2,236,332.86          2,236,332.86                         2,236,332.86


VI. Balance
at the end of   1,008,950,570.00   3,331,593,434.63 303,627,977.74 -4,796,181.08 2,527,617.02   510,100,496.00   13,890,386,805.30     18,435,134,764.13   543,348,889.57   18,978,483,653.70
the period




                                                                                                                                                                                   59
                                                                                                                                                    无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
           Amount of the previous period

                                                                                                                                                                                                         Unit: yuan

                                                                                                             Semi-annual of 2020

                                                                          Owners’ equity attributable to the parent Company
                                       Other
                                       equity
                                   instrument

                                         Pe
                                         rp                                                                                        Prov

    Item                                 etu                                                                                       ision
                                   Pr                                    Less:        Other                                                                    Ot                        Minority        Total owners’
                                         al                                                      Reasonable                         of
                Share capital      efe              Capital reserve    Inventory   comprehensi                  Surplus reserve            Retained profit     he     Subtotal           interests           equity
                                         ca Ot                                                     reserve                         gene
                                   rre                                  shares      ve income                                                                  r
                                         pit he                                                                                     ral
                                   d
                                         al     r                                                                                  risk
                                   sto
                                         se
                                   ck
                                         cu
                                         riti
                                         es

I. The
ending
balance of      1,008,950,570.00                    3,391,527,806.33                 134,871.67 3,247,757.06      510,100,496.00           12,076,443,635.56        16,990,405,136.62   494,248,174.05   17,484,653,310.67

the previous
year

Add:
Changes of
accounting
policy


                                                                                                                                                                                                                60
                                                                                                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

Error
correction of
the last
period

Enterprise
combine
under the
same control

Other

II. The
beginning
balance of       1,008,950,570.00   3,391,527,806.33                    134,871.67 3,247,757.06    510,100,496.00   12,076,443,635.56     16,990,405,136.62   494,248,174.05   17,484,653,310.67

the current
year

III. Increase/
Decrease in
the period
                                                       300,007,852.84     3,048.10   -611,271.08                      233,103,154.98         -67,512,920.84    19,845,510.57      -47,667,410.27
(Decrease is
listed with
“-”)

(i) Total
comprehensi                                                               3,048.10                                   1,326,344,424.98      1,326,347,473.08    19,927,408.92    1,346,274,882.00

ve income

(ii) Owners’
devoted and
                                                       300,007,852.84                                                                       -300,007,852.84    15,598,792.00     -284,409,060.84
decreased
capital

                                                                                                                                                                                      61
                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

1.Common
shares
                                                                          15,598,792.00       15,598,792.00
invested by
shareholders

2. Capital
invested by
holders of
other equity
instruments

3. Amount
reckoned
into owners
equity with
share-based
payment

4. Other       300,007,852.84                          -300,007,852.84                      -300,007,852.84



(iii) Profit
                                -1,093,241,270.00     -1,093,241,270.00   -15,748,768.80   -1,108,990,038.80
distribution


1.Withdrawa
l of surplus
reserves

2. ithdrawal
of general
risk
provisions


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                          无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

3. istribution
for owners
(or              -1,093,241,270.00     -1,093,241,270.00   -15,748,768.80   -1,108,990,038.80

shareholders
)

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. emedying
loss with
surplus
reserve

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                                                                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

4. arry-over
retained
earnings
from the
defined
benefit plans

5. arry-over
retained
earnings
from other
comprehensi
ve income

6. Other

(v)
Reasonable                                                                       -611,271.08                                                -611,271.08        68,078.45         -543,192.63

reserve

1. ithdrawal
in the report                                                                  11,612,779.18                                              11,612,779.18     1,079,264.69      12,692,043.87

period

2. Usage in
the report                                                                     12,224,050.26                                             12,224,050.26      1,011,186.24      13,235,236.50

period

(vi) Others

VI. Balance
at the end of   1,008,950,570.00   3,391,527,806.33 300,007,852.84   137,919.77 2,636,485.98   510,100,496.00   12,309,546,790.54     16,922,892,215.78   514,093,684.62   17,436,985,900.40

the period



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                                                                                                                                       无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
       8. Statement of Changes in Owners’ Equity (Parent Company)

       Current Amount

                                                                                                                                                                                   Unit: yuan

                                                                                                            Semi-annual of 2021
                                                 Other
                                                 equity
                                               instrument
                                                     Pe
                                                     rp
             Item                                    etu                                                  Other
                                               Pr                                  Less: Inventory                    Reasonable                                                   Total owners’
                            Share capital             al      Capital reserve                         comprehensive                Surplus reserve    Retained profit      Other
                                               efe                                     shares                          reserve                                                        equity
                                                     ca Ot                                               income
                                               rre
                                                     pit he
                                                d
                                                      al r
                                               sto
                                                     se
                                               ck
                                                     cu
                                                     riti
                                                     es

I. The ending balance of
                            1,008,950,570.00                    3,407,732,016.61     303,627,977.74                                  510,100,496.00    11,698,982,965.62           16,322,138,070.49
the previous year

  Add: Changes of
accounting policy

     Error correction of
the last period

     Other

II. The beginning balance
                            1,008,950,570.00                    3,407,732,016.61     303,627,977.74                                  510,100,496.00    11,698,982,965.62           16,322,138,070.49
of the current year


                                                                                                                                                                                          65
                                              无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

III. Increase/ Decrease in
the period (Decrease is       38,525,721.77                   -77,510,140.83                -38,984,419.06

listed with “-”)

(i) Total comprehensive
                                                            1,433,594,965.81              1,433,594,965.81
income

(ii) Owners’ devoted and
                              38,525,721.77                                                  38,525,721.77
decreased capital

1.Common shares
invested by shareholders

2. Capital invested by
holders of other equity
instruments

3. Amount reckoned into
owners equity with            38,525,721.77                                                  38,525,721.77

share-based payment

4. Other

(iii) Profit distribution                                  -1,513,341,439.50              -1,513,341,439.50

1. Withdrawal of surplus
reserves
2. Distribution for owners
                                                           -1,513,341,439.50              -1,513,341,439.50
(or shareholders)

3. Other

(iv) Carrying forward
internal owners’ equity

1. Capital reserves
conversed to capital (share
capital)
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                                                                                                      无锡威孚高科技集团股份有限公司 2021 年半年度报告全文

2. Surplus reserves
conversed to capital (share
capital)

3. Remedying loss with
surplus reserve

4. Carry-over retained
earnings from the defined
benefit plans

5. Carry-over retained
earnings from other
comprehensive income

6. Other

(v) Reasonable reserve

1. Withdrawal in the
                                                                                     3,218,208.90                                                     3,218,208.90
report period

2. Usage in the report
                                                                                     3,218,208.90                                                     3,218,208.90
period

(vi) Others                                                                                                               2,236,332.86                2,236,332.86

IV. Balance at the end of
                              1,008,950,570.00   3,446,257,738.38   303,627,977.74                  510,100,496.00   11,621,472,824.79           16,283,153,651.43
the period




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                                                                                                                                         无锡威孚高科技集团股份有限公司 2021 年半年度报告全文
        Amount of the previous period

                                                                                                                                                                                     Unit: yuan

                                                                                                              Semi-annual of 2020
                                                   Other
                                                   equity
                                                 instrument
                                                       Pe
                                                       rp
             Item                                      etu                                                  Other
                                                 Pr                                  Less: Inventory                    Reasonable                                                   Total owners’
                             Share capital              al      Capital reserve                         comprehensive                Surplus reserve    Retained profit      Other
                                                 efe                                     shares                          reserve                                                        equity
                                                       ca Ot                                               income
                                                 rre
                                                       pit he
                                                  d
                                                        al r
                                                 sto
                                                       se
                                                 ck
                                                       cu
                                                       riti
                                                       es
I. The ending balance of
                              1,008,950,570.00                    3,488,221,286.39                                                     510,100,496.00    10,381,863,816.29           15,389,136,168.68
the previous year

  Add: Changes of
accounting policy

     Error correction of
the last period

     Other

II. The beginning balance
                              1,008,950,570.00                    3,488,221,286.39                                                     510,100,496.00    10,381,863,816.29           15,389,136,168.68
of the current year

III. Increase/ Decrease in
the period (Decrease is                                              -7,000,000.00     300,007,852.84                                                        75,460,598.06             -231,547,254.78

listed with “-”)

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(i) Total comprehensive
                                                             1,218,622,388.02              1,218,622,388.02
income

(ii) Owners’ devoted and
                              300,007,852.84                   -49,920,519.96               -349,928,372.80
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                      300,007,852.84                   -49,920,519.96               -349,928,372.80


(iii) Profit distribution                                   -1,093,241,270.00              -1,093,241,270.00


1. Withdrawal of surplus
reserves

2. Distribution for owners
                                                            -1,093,241,270.00              -1,093,241,270.00
(or shareholders)

3. Other

(iv) Carrying forward
internal owners’ equity


1. Capital reserves
conversed to capital (share
capital)


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2. Surplus reserves
conversed to capital (share
capital)

3. Remedying loss with
surplus reserve

4. Carry-over retained
earnings from the defined
benefit plans

5. Carry-over retained
earnings from other
comprehensive income

6. Other

(v) Reasonable reserve                                                               -1,177,442.02                                                    -1,177,442.02


1. Withdrawal in the
                                                                                     2,924,878.27                                                      2,924,878.27
report period

2. Usage in the report
                                                                                     4,102,320.29                                                      4,102,320.29
period

(vi) Others                                         -7,000,000.00                    1,177,442.02                                                     -5,822,557.98


IV. Balance at the end of
                              1,008,950,570.00   3,481,221,286.39   300,007,852.84                   510,100,496.00   10,457,324,414.35           15,157,588,913.90
the period




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I I I . Basic information of the Company

1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled 115.4355 million Yuan,
including state-owned share capital amounting to 92.4355 million Yuan, public corporate share capital amounting
to 8 million Yuan and inner employee share capital amounting to 15 million Yuan.
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 1.00 Yuan for each, and the total value of those
shares amounted to 68 million Yuan. After the issuance, the Company’s total share capital increased to 183.4355
million Yuan.
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 303.4355 million Yuan.
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 394.46615 million Yuan, of which state-owned shares amounted to 120.16615 million
Yuan, public corporate shares 10.4 million Yuan, foreign-funded shares (B-share) 88.40 million Yuan, RMB
ordinary shares (A-share) 156 million Yuan and inner employee shares 19.5 million Yuan.
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 10
Yuan for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the
allotment increased to 436.36615 million Yuan, of which state-owned corporate shares amounted to 121.56615
million Yuan, public corporate shares 10.4 million Yuan, foreign-funded shares (B-share) 88.4 million Yuan and
RMB ordinary shares (A-share) 216 million Yuan.
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

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conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing 17.63%
of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd. issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in February 2012, the Company issued
RMB ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor
privately, Robert Bosch Co., Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company),
face value was ONE Yuan per share, added registered capital of 112,858,000Yuan, and the registered capital after
change was 680,133,995Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Robert
Bosch Company is the second majority shareholder of the Company.
In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting 1,020,200,992Yuan 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 (share capital) becomes 1,008,950,570 Yuan after the change.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road, Xinwu District, Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors (BOD) and the Board of Supervisors
(BOS)
The Company sets up Administration Department, Technology Centre, organization & personnel department,
Office of the Board, compliance department, IT department, Strategy & new business Department, market
development department, Party-masses Department, Finance Department, Purchase Department,Manufacturing
Quality Department, MS (Mechanical System) division, AC(Automobile Components) division and DS (Diesel


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System ) division etc. and subsidiaries such as Wuxi Weifu Lida Catalytic Converter Co., Ltd., Nanjing Weifu
Jinning Co., Ltd., IRD Fuel Cells A/S and Borit NV etc.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products, fuel oil system testers and equipment, manufacturing of auto
electronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaust
after-treatment system; sales of the general machinery, hardware & electrical equipment, chemical products & raw
materials (excluding hazardous chemicals), automobile components and vehicles (excluding nine-seat passenger
car); internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. Research and test
development of engineering and technical; R&D of the energy recovery system; manufacture of auto components
and accessories; general equipment manufacturing (excluding special equipment manufacturing), (any projects
that needs to be approved by laws can only be carried out after getting approval by relevant authorities) General
items: engage in investment activities with self-owned funds (except for items subject to approval according to the
law, independently carry out business activities according to laws with business licenses )
Major subsidiaries respectively activate in production and sales of engine accessories, automobile components,
mufflers, purifiers and fuel cell components etc.
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 August 20,
2021.
5. Scope of consolidate financial statement

                                                                 Shareholding ratio             Registered                         Statem
                                                                                      Proportion capital                             ent
                                                     Short name           (%)
             Name of subsidiary                                                        of votes    (in 10      Business scope      consoli
                                                    of subsidiary
                                                                                         (%)     thousand                            date
                                                                  Directly Indirectly              Yuan)                            (Y/N)
                                                                                                             Internal-combustion
Nanjing Weifu Jinning Co., Ltd.                     WFJN        80.00    --           80.00    34,628.70                           Y
                                                                                                             engine accessories
Wuxi Weifu Lida Catalytic Converter Co.,
                                                    WFLD        94.81    --           94.81    50,259.63     Purifier and muffler Y
Ltd.
Wuxi     Weifu     Mashan       Fuel    Injection                                                            Internal-combustion
                                                    WFMA        100.00   --           100.00   16,500                              Y
Equipment Co., Ltd.                                                                                          engine accessories
                                                                                                             Internal-combustion
Wuxi Weifu Chang’an Co., Ltd.                      WFCA        100.00   --           100.00   21,000                              Y
                                                                                                             engine accessories
Wuxi Weifu International Trade Co., Ltd.            WFTR        100.00   --           100.00   3,000         Trade                 Y
Wuxi      Weifu       Schmitter        Powertrain                                                            Internal-combustion
                                                    WFSC        66.00    --           66.00    7,600                               Y
Components Co., Ltd.                                                                                         engine accessories
Ningbo     Weifu       Tianli     Turbocharging                                                              Internal-combustion
                                                    WFTT        98.83    1.17         100.00   11,136                              Y
Technology Co., Ltd.                                                                                         engine accessories



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Wuxi Weifu Autocam Precision Machinery                                                            Automobile
                                             WFAM          51.00    --        51.00    USD2,110                             Y
Co., Ltd.                                                                                         components
Wuxi Weifu Lida Catalytic Purifier (Wuhan) WFLD
                                                           --       60.00     60.00    1,000      Purifier and muffler Y
Co., Ltd.                                    (Wuhan)
Weifu        Lida     (Chongqing)   Automobile WFLD
                                                           --       100.00    100.00   5,000      Purifier and muffler Y
Components Co., Ltd.                         (Chongqing)
Nanchang            Weifu   Lida    Automobile WFLD
                                                           --       100.00    100.00   5,000      Purifier and muffler Y
Components Co., Ltd.                         (Nanchang)
Wuxi Weifu Autosmart Seating System Co.,
                                             WFAS          --       66.00     66.00    10,000     Smart car device          Y
Ltd.
Wuxi Weifu E-drive Technologies Co., Ltd.    WFDT          80.00    --        80.00    USD2,000 Wheel motor                 Y
Weifu Holding ApS                            SPV           100.00   --        100.00   DKK238     Investment                Y
                                                                                                  Fuel               cell
IRD Fuel Cells A/S                           IRD           --       100.00    100.00   DKK8,660                             Y
                                                                                                  components
                                                                                                  Fuel               cell
IRD FUEL CELLS LLC                           IRD America --         100.00    100.00   USD300                               Y
                                                                                                  components
                                                                                       EURO316. Fuel                 cell
Borit NV                                     Borit         --       100.00    100.00                                        Y
                                                                                       09         components
                                                                                                  Fuel               cell
Borit Inc.                                   Borit Inc.    --       100.00    100.00   USD0.1                               Y
                                                                                                  components


IV. Basis of preparation of financial statements

1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance, the specific 42 accounting rules revised and issued dated 15 February 2006
and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.

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.




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V. Major Accounting Policies and Estimation

Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, automobile components, mufflers, purifiers and fuel cell components etc., in line with the real
operational characteristics and relevant accounting standards, many specific accounting policies and estimation
have been formulated for the transactions and events with revenue recognized concerned. As for the explanation
on major accounting judgment and estimation, found more in Note V- 36. 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 during the
reporting period such as financial position, operation achievements and cash flow.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations under the same/different control
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(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


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combining entities are not ultimately controlled by the same party or parties both before and after the
combination.As a purchaser, fair value of the assets (equity of purchaser held before the date of purchasing
included) for purchasing controlling right from the purchaser, the liability occurred or undertake on purchasing
date less the fair value of identifiable net assets of the purchaser obtained in combination, recognized as goodwill
if the results is positive; if the number is negative, the acquirer shall firstly review the measurement of the fair
value of the identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the
combination costs.After that, if the combination costs are still lower than the fair value of the identifiable net
assets obtained, the acquirer shall recognize the difference as the profit or loss in the current period.Other directly
expenses cost for combination shall be reckoned into current gains/losses. Difference of the fair value of assets
paid and its book values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or
contingency of the purchaser obtained by the Company recognized by fair value, that required identification
conditions; Acquisition date refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the invested
party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested
party.Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
de-consolidated from the date that such control ceases.All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being
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


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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
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
purchaser directly when the control is lost, namely be transferred to current investment income other than the
relevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit scheme
by the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with
relevant accounting standards such as Accounting Standards for business Enterprises 2 – Long-term Equity
Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement.
The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal

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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; ②The 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; ④The 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. Recognition standards for cash and cash equivalent
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held
by the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as
known amount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. There into,
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

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according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. There into, 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) Recognition and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The recognition of a financial assets shall be terminated if it meets one of the following conditions:
① the contractual right to receive the cash flow of the financial assets terminates; and
② the financial assets is transferred and the company transfers substantially all the risks and rewards of ownership
of the financial asset to the transferring party;
③the financial asset was transferred and control, although the company has neither transferred nor retained almost
all the risks and rewards of the ownership of a financial asset, it relinquishes control over the financial asset.
If all or part of the current obligations of a financial liability has been discharged, the financial liability or part of it
is terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the existing
financial liabilities with new financial liabilities, and the new financial liabilities and the existing financial liabilities
are substantially different from the contract terms, terminated the recognition of the existing financial liabilities and


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recognize the new financial liabilities at the same time.
Financial assets are traded in the normal way and their accounting recognition and terminated the recognition of
proceed on a trade date basis.
(2) Classification and measurement of financial assets
At the initial recognition, according to the business model of managing financial assets and the contractual cash
flow characteristics of financial assets, the Company classifies the financial assets into the financial assets
measured at amortized cost, the financial assets measured at fair value and whose changes are included in other
comprehensive income, and the financial assets measured at fair value and whose changes are included in current
profit or loss. Financial assets are measured at fair value at initial recognition, but if the receivables or receivables
financing arising from the sale of goods or the provision of services do not include a significant financing
component or do not consider a financing component that does not exceed one year, it shall be initially measured
in accordance with the transaction value. For financial assets measured at fair value and whose changes are
included in the current profit or loss, related transaction costs are directly included in the current profit and loss;
for other types of financial assets, related transaction costs are included in the initially recognized amount.
The business model for managing financial assets refers to how the Company manages financial assets to generate
cash flows. The business model determines whether the cash flow of financial assets managed by the Company is
based on contract cash flow, selling financial assets or both. The Company determines the business model for
managing financial assets based on objective facts and based on the specific business objectives of financial assets
management determined by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on a specific date are only payments for the
principal and the interest based on the outstanding principal amount. The principal is the fair value of the financial
assets at initial recognition; the interest includes the time value of money, the credit risk associated with the
outstanding principal amount for a specific period, and other basic borrowing risks, costs and consideration of profit.
In addition, the Company evaluates the contractual terms that may result in changes in the time distribution or the
amount of contractual cash flows of the financial assets to determine whether they meet the requirements of the
above contractual cash flow characteristics.
Only when the Company changes its business model of managing financial assets, all affected financial assets are
reclassified on the first day of the first reporting period after the business model changes, otherwise the financial
assets are not allowed to be reclassified after initial recognition.
① Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at amortized cost:
A. the group's business model for managing the financial assets is to collect contractual cash flows;
B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for
the principal and interest based on the outstanding principal amount.


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After initial recognition, such financial assets are measured at amortized cost by using the effective interest method.
Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any
hedging relationship are included in current profit or loss when being terminated for recognition, amortized by
effective interest method, or impaired.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at fair value and whose changes are included in other comprehensive income:
A. the Group's business model for managing the financial assets is targeted at both the collection of contractual
cash flows and the sale of financial assets;
B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the
payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment losses
or gains and exchange gains and losses calculated by using the effective interest method are included in profit or loss
for the period, and other gains or losses are included in other comprehensive income. When being terminate for
recognition, the accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income and included in current profit or loss.
③Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are
included in other comprehensive income, the Company classifies all other financial assets as financial assets
measured at fair value and whose changes are included in current profit or loss. In the initial recognition, in order to
eliminate or significantly reduce accounting mismatch, the Company irreversibly designates part of the financial
assets that should be measured at amortized cost or measured at fair value and whose changes are included in the
other comprehensive income as the financial assets measured at fair value and whose changes are included in
current profit or loss.
After the initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses
(including interests and dividend income) are included in the current profit and loss, unless the financial assets are
part of the hedging relationship.
However, for non-trading equity instrument investments, the Company irreversibly designates them as the financial
assets that are measured at fair value and whose changes are included in other comprehensive income in the initial
recognition. The designation is made based on a single investment and the relevant investment is in line with the
definition of equity instruments from the issuer's perspective. After initial recognition, such financial assets are
subsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss, and
other gains or losses and changes in fair value are included in other comprehensive income. When it is terminated
for recognition, the accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income and included in retained earnings.
(3) Classification and measurement of financial liabilities


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The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss and financial liabilities measured at amortized cost at the initial
recognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss, the related transaction expenses are included in the initial recognition
amount.
①Financial liability measured by fair value and with variation reckoned into current gains/losses
Financial liability measured by fair value and with variation reckoned into current gains/losses including tradable
financial liability and the financial liabilities that are designated as fair value in the initial recognition and whose
changes are included in current profit or loss. For such financial liabilities, the subsequent measurement is based on
fair value, and the gains or losses arising from changes in fair value and the dividends and interest expenses related
to these financial liabilities are included in current profit or loss.
②Financial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. The
gain or loss arising from recognition termination or amortization is included in current profit or loss.
③Distinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.
B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially
adverse conditions.
C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments in
the future, and the enterprise will deliver a variable amount of its own equity instruments according to the contract.
D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in the
future, except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixed
amount of their own equity instruments.
An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deducting all
liabilities.
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets, the contractual obligation is consistent with the definition of financial liability.
If a financial instrument is required to be settled or can be settled by the Company's own equity instruments, it is
necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute
for cash or other financial assets, or to make the instrument holder enjoy the residual equity in the assets of the issuer
after deducting all liabilities. In the former case, the instrument is the Company's financial liability; if it is the latter,
the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have sufficient
available data and other information support to determine the fair value of related financial assets and financial
liabilities. The company divides the input values used by valuation techniques into the following levels and uses

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them in sequence:
① The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on the
measurement date in the active market;
② The second-level input value is the direct or indirect observable input value of the relevant assets or liabilities
other than the first-level input value, including quotations of similar assets or liabilities in an active market;
quotations of same or similar assets or liabilities in an active market; other observable input value other than
quotations, such as interest rate and yield curves that are observable during the normal quote interval;
market-validated input value, etc.;
③ The third-level input value is the unobservable input value of the relevant assets or liabilities, including the
interest rate that cannot be directly observed or cannot be verified by observable market data, stock volatility, future
cash flow of the retirement obligation assumed in the business combination, and financial forecasting made by its
own data, etc.
(5) Impairment of financial assets
On the basis of expected credit losses, the Company performs impairment treatment on financial assets measured
at amortized cost and creditors’ investment etc. measured at fair value and whose changes are included in other
comprehensive income and recognize the provisions for loss.
①Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received, that is, the present value of all cash shortages. Among them, for the purchase or source of financial
assets that have suffered credit impairment, the Company discounts the financial assets at the actual interest rate
adjusted by credit.
When measuring expected credit losses, the Company individually evaluates credit risk for financial assets with
significantly different credit risks, such as receivables involving litigation and arbitration with the other party, or
receivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations,
and so on.
Except for the financial assets that separately assess the credit risks, the Company classified the account
receivable according to their characteristic of risks, calculated the expected credit losses on basis of portfolio.
Basis for determining the portfolio as follow:
     A - Note receivable
     Note receivable 1: bank acceptance
     Note receivable 2: trade acceptance
     B - Account receivable
     Account receivable 1: receivable from clients
     Account receivable 2: receivable from internal related party



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     C- Receivable financing
     Receivable financing 1: bank acceptance
     Receivable financing 2: trade acceptance
     D - Other account receivables
     Other account receivables 1: receivable from internal related party
     Other account receivables 2: receivable from others
As for the note receivable, account receivable, receivable financing and other account receivable classified in
portfolio, by referring to the experience of historical credit loss, the expected credit loss is calculated by
combining the current situation and the forecast of future economic conditions.
Except for the financial assets adopting simplified metering method, the Company assesses at each balance sheet
date whether its credit risk has increased significantly since initial recognition. If credit risk has not increased
significantly since initial recognition, it is in the first stage, the Company measures the loss provisions based on
the amount equivalent to the expected credit loss in the next 12 months; if the credit risk has increased
significantly since initial recognition but no credit impairment has occurred, it is in the second stage, the Company
measures the loss provisions based on the amount equivalent to the expected credit loss for the entire duration; if
credit impairment occurs after initial recognition, it is in the third stage, the Company measures the loss
provisions based on the amount equivalent to the expected credit loss for the entire duration.For financial
instruments with low credit risks at the balance sheet date, the Company assumes that their credit risks have not
increased significantly since initial recognition.
The Company evaluates the expected credit losses of financial instruments based on individual items and
portfolios. When assessing expected credit losses, the Company considers reasonable and evidence-based
information about past events, current conditions, and forecasts of future economic conditions.
When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flow
of a financial asset, the Company directly writes down the book balance of the financial asset.
②Assessment of a significant increase in credit risk:
The Company determines the relative changes in default risk of the financial instrument occurred in the expected
duration and assess whether the credit risks of financial instrument has increased significantly since the initial
recognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk of
default of financial instrument on the initial recognition date. When determining whether the credit risk has
increased significantly since the initial recognition, the Company considers reasonable and evidence-based
information that can be obtained without unnecessary additional costs or effort, including forward-looking
information. The information considered by the Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;
B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred or
are expected;
C. Serious deterioration of the debtor’s operating results that have occurred or are expected;
D. Changes in existing or anticipated technical, market, economic or legal circumstances that will have a material


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adverse effect on the debtor's ability to repay the company.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly
on the basis of a single financial instrument or combination of financial instruments. When conducting an
assessment based on a combination of financial instruments, the Company can classify financial instruments based
on common credit risk characteristics, such as overdue information and credit risk ratings.
The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company, and the assessment does not consider the Company to
take recourse actions such as realizing collateral (if held).
③Financial assets with credit impairment
On the balance sheet date, the Company assesses whether the credit of financial assets measured at amortized cost
and the credit of debt investments measured at fair value and whose changes are included in other comprehensive
income has been impaired. When one or more events that adversely affect the expected future cash flows of a
financial asset occur, the financial asset becomes a financial asset that has suffered credit impairment. Evidence that
credit impairment has occurred in financial assets includes the following observable information:
A. The issuer or the debtor has significant financial difficulties;
B. The debtor breaches the contract, such as default or overdue repayment of interest or principal;
C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic or
contractual considerations relating to the financial difficulties of the debtor;
D. The debtor is likely to go bankrupt or carry out other financial restructurings;
E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to
disappear.
④Presentation of expected credit loss provisions
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company
re-measures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the loss
provisions shall be included in current profit and loss as impairment losses or gains. For financial assets measured at
amortized cost, the loss provisions are written off against the book value of the financial assets listed in the balance
sheet; for debt investments measured at fair value and whose changes are included in other comprehensive income,
the Company recognizes the loss provisions in other comprehensive income and does not deduct the book value of
the financial asset.
⑤Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially
recovered, directly write down the book balance of the financial asset. Such write-downs constitute the termination
of recognition for related financial assets. This usually occurs when the Company determines that the debtor has no
assets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However,
according to the Company's procedures for recovering the due amount, the financial assets that have been written
down may still be affected by the execution activities.
If the financial assets that have been written down are recovered afterwards, they shall be included in the profit or

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loss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)
other than the issuer of the financial assets.
For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets to
the transferee, terminate the recognition of the financial assets; if almost all the risks and rewards of ownership of
financial assets have been retained, do not terminate the recognition of the financial assets.
If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets,
dispose as following situations: If the control of the financial assets is abandoned, terminate the recognition of the
financial assets and determine the resulting assets and liabilities. If the control of the financial assets is not
abandoned, determine the relevant financial assets according to the extent to which they continue to be involved in
the transferred financial assets, and determine the related liabilities accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial
assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition,
the financial assets and liabilities are listed in the balance sheet without being balanced out.
11.Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
The Company calculates expected credit losses by referring to historical credit loss experience, taking into
account current conditions and forecasts of the future economic situation.
12.Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
The Company calculates expected credit losses by referring to historical credit loss experience, taking into
account current conditions and forecasts of the future economic situation.
13.Receivables financing
The note receivable and account receivable which are measured at fair value and whose changes are included in
other comprehensive income are classified as receivables financing within one year(including one year) from the
date of acquisition. Relevant accounting policy found more in 10. Financial Instrument in Note V.
14.Other account receivables
Determination method of expected credit loss and accounting treatment
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
The Company calculates expected credit losses by referring to historical credit loss experience, taking into
account current conditions and forecasts of the future economic situation.



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15.Inventory
(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
The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method,
and the difference in cost that it should bear is carried forward at the end of the period, and the standard cost is
adjusted to the actual cost.
(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
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.
16.Contractual assets
The Company presents the contractual assets or contract liabilities in the balance sheet based on the relationship
between the performance obligation and the customer’s payment.
Recognition method and standard of contractual assets: contractual assets refer to the right of a company to
receive consideration after transferring goods or providing services to customers, and this right depends on other


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factors besides the passage of time. The company's unconditional (that is, only depending on the passage of time)
right to collect consideration from customers are separately listed as receivables.
Method for determining expected credit losses of contractual assets: the method for determining expected credit
losses of contractual assets is consistent with the method for determining expected credit losses of accounts
receivable.
Accounting treatment method of expected credit losses of contractual assets: if the contractual assets are impaired,
the company shall debit the "asset impairment loss" subject and credit the "contract asset impairment provision"
subject according to the amount that should be written down. When reversing the provision for asset impairment
that has already been withdrawn, make opposite accounting entries.
17.Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction, the
non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur,
that is, the Company has made resolution on the selling plan and obtained definite purchase commitment, the
selling is estimated to be completed within one year. Those assets whose disposal is subject to approval from
relevant authority or supervisory department under relevant requirements are subject to that approval.
Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or
not the Company retains part equity investment after such disposal, investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale,
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.
The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties, which sets out certain major terms relating to transaction price, time and adequately
stringent punishment for default, which render an extremely minor possibility for material adjustment or
revocation of the agreement.
Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss and
recorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill in
the disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases, the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held


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for sale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be
restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale, with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
not be reverted.
The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized,
and the debt interests and other fees in the disposal group held for sale continue to be recognized.
If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale, they will be measured at the lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation, amortization or impairment that should have been recognized given they are not classified as held
for sale;
(ii) The recoverable amount.
18.Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint
control or significant influence over the invested party. Long-term equity investment without control or joint
control or significant influence of the Group is accounted for as available-for-sale financial assets or financial
assets measured by fair value and with variation reckoned into current gains/losses. As for other accounting
policies found more in “10. Financial instrument” in Note V.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:

①For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial
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


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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.

② For the long-term equity investment obtained by business combination not under the same control, the fair
value of the assets involved, the equity instruments issued and the liabilities incurred or assumed on the
transaction date, plus the combined cost directly related to the acquisition is used as the initial investment cost of
the long-term equity investment. The identifiable assets of the combined party and the liabilities (including
contingent liabilities) assumed by the combined party on the combining date are all measured at fair value,
regardless of the amount of minority shareholders’ equity. The amount of the combined cost exceeding the fair
value of the identifiable net assets of the combined party obtained by the Company is recorded as goodwill, and
the amount below the fair value of the identifiable net assets of the combining party is directly recognized in the
consolidated income statement.(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.)
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;

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D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on invested party, the investment shall use cost method for measurement.

②Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the invested party are accounted for using equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor’s interest in the fair value of the invested party’s identifiable net assets at the acquisition date, no
adjustment shall be made to the initial investment cost. Where the initial investment cost is less than the investor’s
interest in the fair value of the invested party’s identifiable net assets at the acquisition date, the difference shall be
charged to profit or loss for the current period, and the cost of the long term equity investment shall be adjusted
accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the invested party,
respectively. Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying
amount of long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend
distributed by the invested party. In respect of the other movement of net profit or loss, other comprehensive
income and profit distribution of invested party, the carrying value of long-term equity investment shall be
adjusted and included in the capital reserves. The Group shall recognize its share of the invested party’s net profits
or losses based on the fair values of the invested party’s individual separately identifiable assets at the time of
acquisition, after making appropriate adjustments thereto. In the event of in-conformity between the accounting
policies and accounting periods of the invested party and the Company, the financial statements of the invested
party shall be adjusted in conformity with the accounting policies and accounting periods of the Company.
Investment gain and other comprehensive income shall be recognized accordingly. In respect of the transactions
between the Group and its associates and joint ventures in which the assets disposed of or sold are not classified as
operation, the share of unrealized gain or loss arising from inter-group transactions shall be eliminated by the
portion attributable to the Company. Investment gain shall be recognized accordingly. However, any unrealized
loss arising from inter-group transactions between the Group and an invested party is not eliminated to the extent
that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified
as operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment by the
investor without obtaining control, the initial investment cost of additional long-term equity investment shall be
the fair value of disposed operation. The difference between initial investment cost and the carrying value of
disposed operation will be fully included in profit or loss for the current period. In the event that the Group sold an
asset classified as operation to its associates or joint ventures, the difference between the carrying value of
consideration received and operation shall be fully included in profit or loss for the current period. In the event
that the Company acquired an asset which formed an operation from its associates or joint ventures, relevant
transaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20
“Business combination”. All profit or loss related to the transaction shall be accounted for.

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The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of
the long-term equity investment together with any long-term interests that in substance form part of the investor’s
net investment in the invested party are reduced to zero. If the Group has to assume additional obligations, the
estimated obligation assumed shall be provided for and charged to the profit or loss as investment loss for the
period. Where the invested party is making profits in subsequent periods, the Group shall resume recognizing its
share of profits after setting off against the share of unrecognized losses.
③Acquisition of minority interest

Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④Disposal of long-term equity investments

In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note V.-6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by invested party on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of invested party) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method, other comprehensive income measured and reckoned under equity
method or financial instrument before control of the invested party unit acquired shall be accounted for in
accordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party
on pro rata basis at the time of disposal and shall be transferred to profit or loss for the current period on pro rata
basis; among the net assets of invested party unit recognized by equity method (excluding net profit or loss, other
comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current
period on pro rata basis.
In the event of loss of control over invested party due to partial disposal of equity investment by the Group, in


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preparing separate financial statements, the remaining equity interest which can apply common control or impose
significant influence over the invested party after disposal shall be accounted for using equity method. Such
remaining equity interest shall be treated as accounting for using equity method since it is obtained and
adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose
significant influence over the invested party after disposal, it shall be accounted for using the recognition and
measurement standard of financial instruments. The difference between its fair value and carrying amount as at
the date of losing control shall be included in profit or loss for the current period. In respect of other
comprehensive income recognized using equity method or the recognition and measurement standard of financial
instruments before the Group obtained control over the invested party, it shall be accounted for in accordance with
the same accounting treatment for direct disposal of relevant asset or liability by invested party at the time when
the control over invested party is lost. Movement of other owners’ equity (excluding net profit or loss, other
comprehensive income and profit distribution under net asset of invested party accounted for and recognized
using equity method) shall be transferred to profit or loss for the current period at the time when the control over
invested party is lost. Of which, for the remaining equity interest after disposal accounted for using equity method,
other comprehensive income and other owners’ equity shall be transferred on pro rata basis. For the remaining
equity interest after disposal accounted for using the recognition and measurement standard of financial
instruments, other comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over invested party due to partial disposal of equity
investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition
and measurement standard of financial instruments. The difference between its fair value and carrying amount as
at the date of losing common control or significant influence shall be included in profit or loss for the current
period. In respect of other comprehensive income recognized under previous equity investment using equity
method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by invested party at the time when equity method was ceased to be used. Movement of other
owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of
invested party accounted for and recognized using equity method) shall be transferred to profit or loss for the
current period at the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction
shall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The
difference between the disposal consideration for each transaction and the carrying amount of the corresponding
long-term equity investment of disposed equity interest before loss of control shall initially recognized as other
comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-25.”impairment of long-term assets”
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant

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activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an invested party, but to fail to control or joint control the formulation of such policies together with other
parties.While recognizing whether have significant influence by invested party, the potential factors of voting
power as current convertible bonds and current executable warrant of the invested party held by investors and
other parties shall be thank over.
19.Investment real estate
Measurement model of investment real estate
Cost measurement
Depreciation or amortization
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 Note V- “25.Impairment of
long-term assets”
20. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a
service life excess one year and has more unit value.
(2) Depreciation methods

            Category           Depreciation method        Years of depreciation       Scrap value rate   Yearly depreciation rate
House and Building          Straight-line depreciation   20~35                    5                      2.71~4.75
Machinery equipment         Straight-line depreciation   10                       5                      9.50
Transportation equipment    Straight-line depreciation   4~5                      5                      19.00~23.75
Electronic and other
                            Straight-line depreciation   3~10                    5                      9.50~31.67
equipment

For the fixed assets with impairment provision, the depreciation amount shall be calculated after deducting the
accumulated amount of impairment provision for fixed assets


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(3) Recognition basis, valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:

① Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the
lease commencement date), the ownership of lease fixed assets can be transferred to the Company after the expiry
of the lease period;

② The Company has the option to purchase or lease the fixed assets, and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options, so whether the Company will
exercise the option can be reasonably determined on the lease commencement date;

③Even though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of
the lease fixed assets;

④ The present value of the Company’s of minimum lease payment on the lease commencement date is
equivalent to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present
value of the leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of
the fair value of the lease fixed assets on the lease commencement date;

⑤ The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.

(4) The impairment test method of fixed assets and the method of provision for impairment
see Note V-25“Impairment of long-term assets”.
21.Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state, the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.
The basis of provision for impairment of properties held for construction in process is referred to Note V-“25.
Impairment of long-term assets”
22. 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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①Capital expenditure has been occurred;
②Borrowing 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.
23.Right-of-use assets

Applicable from January 1, 2021:
(1) Recognition conditions of the right-of-use asset
The Company's right-of-use asset refers to the right of the Company as the lessee to use leased assets during the
lease term. On the commencement date of the lease term, the right-of-use asset is initially measured at the cost.
This cost includes the initial measured amount of lease liabilities. If there are lease incentives in the lease
payments paid on or before the lease term, deduct the amount relevant to the lease incentives; the Company’s
initial direct cost as the lessee; the Company’s cost predicted to incur as a lessee for disassembling or removing
the leasing assets, or restoring the leasing assets or renewing the leasing assets to the condition as agreed in the
leasing clauses. As the lessee, the Company recognizes and measures the cost of dismantling or restoring in
accordance with the "Accounting Standards for Business Enterprises No. 13 - Contingency", and makes
subsequent adjustments to any re-measurement of lease liabilities.
(2) Depreciation method for right-of-use asset
The Company uses the straight-line method for depreciation. As the lessee, if the Company can reasonably
determine to obtain the ownership of leased assets when the lease expires, the accrual of depreciation shall be


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conducted within the remaining service life of the leased assets. If it cannot be determined that the ownership of
leased assets can be obtained when the lease expires, the accrual of depreciation shall be conducted during the
period of which the lease term is shorter than the remaining service life of the leased asset.
(3) Impairment text methods and impairment provision method for the right-to-use assets is referred to Note V-“25.
Impairment of long-term assets”
24. Intangible assets
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized by straight-line method 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 Note
V-“25.Impairment of long-term assets”.
(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):
①It is technically feasible that the intangible asset can be used or sold upon completion;
②there 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;
④there is sufficient support in terms of technology, financial resources and other resources in order to complete


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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.
25. Impairment of long-term assets
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
non-current non-financial assets such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled
entities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall
be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
beyond working conditions will be tested for impairment annually, regardless of whether there is any indication of
impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
impairment provision will be made according to the difference and recognized as an impairment loss. The
recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,
including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the
asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over
the course of continued use and final disposal is determined as the amount discounted using an appropriately
selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it
is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the part whose value can be recovered.



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26. 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.
27.Contractual liability
The Company lists the obligation to transfer goods or provide labor services to customers for the consideration
received or receivable from customers as contractual liabilities, such as the amount that the company has received
before the transfer of the promissory goods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
specified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3)Accounting treatment 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

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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 treatment 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 benefitliability 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.
29.Lease liability

Applicable from January 1, 2021:
On the commencement date of the lease term, the Company recognizes the lease liabilities for leases other than
short-term leases and low-value asset leasing. Lease liabilities are initially measured at the present value of
outstanding lease payments. The lease payments include:
For fixed payments (including substantive fixed payment), if there is a lease incentive, the amount related to the
lease incentive shall be deducted;
Variable lease payments depending on the index or ratio;
Payments estimated to be paid according to the guaranteed residual value provided by the company;
The exercise price of the call option provided that the company reasonably determines that the option will be
exercised;
Payments need to be paid to exercise the termination of lease option provided that the lease term reflects the
company shall exercise the termination of lease option.
The Company uses the interest rate implicit in lease as the discount rate, but if the interest rate implicit in lease
cannot be reasonably determined, the Company's incremental borrowing rate shall be used as the discount rate.
The Company calculates the interest expenses of the lease liabilities in each period of the lease term at fixed
periodic interest rates and includes them in the current profit and loss or the related asset cost.
Variable lease payments not included in the measurement of lease liabilities are included in the current profit and
loss or the related asset cost when they actually incur.
After the commencement of the lease term, if any of the following circumstances occurs, the Company shall
re-measure the lease liabilities and adjust the corresponding right-of-use assets, if the book value of the

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right-of-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the difference
shall be included in the current profit and loss.
If the evaluation result of the call option, the lease renewal option or the termination option changes, or the actual
exercise of the aforementioned option is inconsistent with the original evaluation result, the Company shall
remeasure the lease liability at the present value calculated by the changed lease payments and the revised
discount rate.

In the event of a change in the substantial fixed payment, a change in the amount payable estimated by the
guaranteed residual value, or a change in the index or ratio used to determine the lease payments, the Company
shall remeasure the lease liability in accordance with the changed lease payments and the present value calculated
at the original discount rate. However, where changes in lease payments result from changes in floating interest
rates, the present value is calculated by using the revised discount rate.

30. Accrual liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigation or arbitration,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
31. Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees or other parties.
The Company’s share-based payment is classified as equity-settled share-based payment and cash-settled
share-based payment.
(1) Equity-settled share-based payment and equity instruments
Equity-settled share-based payment in exchange for services provided by employees shall be measured at the fair
value of the equity instruments granted to employees. If the Company uses restricted stocks for share-based
payment, employees contribute capital to subscribe for stocks, and the stocks shall not be listed for circulation or
transfer until the unlocking conditions are met and unlocked; if the unlocking conditions specified in the final
equity incentive plan are not met, the Company shall repurchase the stocks at the pre-agreed price. When the
Company obtains the payment for the employees to subscribe for restricted stocks, it shall confirm the share
capital and capital reserve (share capital premium) according to the obtained subscription money, and at the same
time recognize a liability in full for the repurchase obligation and recognize treasury shares. On each balance sheet
date during the waiting period, the Company makes the best estimate of the number of vesting equity instruments
based on the changes in the latest obtained number of vested employees, whether they meet the specified


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performance conditions, and other follow-up information. On this basis, the services obtained in the current period
are included in related costs or expenses based on the fair value on the grant date, and the capital reserve shall be
increased accordingly.
For share-based payments that cannot be vested in the end, costs or expenses shall not be recognized, unless the
vesting conditions are market conditions or non-vesting conditions. At this time, regardless of whether the market
conditions or the non-vesting conditions are met, as long as all non-market conditions in the vesting conditions are
met, it is deemed as vesting.
If the terms of equity-settled share-based payment are modified, at least the services obtained should be confirmed
in accordance with the unmodified terms. In addition, any modification that increases the fair value of the equity
instruments granted, or a change that is beneficial to employees on the modification date, is recognized as an
increase in services received.
If the equity-settled share payment is cancelled, it will be treated as an accelerated vesting on the cancellation day,
and the unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the
non-vesting conditions but fails to meet within the waiting period, it shall be treated as cancellation of
equity-settled share-based payment. However, if a new equity instrument is granted and it is determined on the
date of grant of the new equity instrument that the new equity instrument granted is used to replace the cancelled
equity instrument, the granted substitute equity instruments shall be treated in the same way as the modification of
the original equity instrument terms and conditions.
(2) Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on
the basis of shares or other equity instruments undertaken by the Company. If it’s vested immediately after the
grant, the fair value of the liabilities assumed on the date of the grant is included in the cost or expense, and the
liability is increased accordingly. If the service within the waiting period is completed or the specified
performance conditions are met, the service obtained in the current period shall be included in the relevant costs
or expenses based on the best estimate of the vesting situation within the waiting periodand the fair value of the
liabilities assumed to increase the corresponding liabilities. On each balance sheet date and settlement date before
the settlement of the relevant liabilities, the fair value of the liabilities is remeasured, and the changes are included
in the current profit and loss.
32. Revenue
Accounting policies used in revenue recognition and measurement
(1)Accounting policies used in revenue recognition and measurement
1)Revenue recognition principle
On the starting date of the contract, the company evaluates the contract, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.
When one of the following conditions is met, it belongs to the performance obligation within a certain period of
time, otherwise, it belongs to the performance obligation at a certain point in time: ① The customer obtains and


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consumes the economic benefits brought by the company's performance while the company performs the contract;
②The customer can control the goods or services under construction during the company’s performance; ③The
goods or services produced during the company’s performance have irreplaceable uses, and the company has the
right to collect payment for the performance part that has been completed so far during the entire contract period.
For performance obligations performed within a certain period of time, the company recognizes revenue in
accordance with the performance progress during that period. When the performance progress cannot be
reasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably determined.For
performance obligations performed at a certain point in time, revenue is recognized at the point when the
customer obtains control of the relevant goods or services. When judging whether the customer has obtained
control of the goods, the company considers the following signs:① The company has the current right to receive
payment for the goods, that is, the customer has the current payment obligation for the goods; ②The company has
transferred the legal ownership of the goods to the customer, that is, the customer has the legal ownership of the
goods; ③The company has transferred the goods to the customer in kind, that is, the customer has physically
taken possession of the goods; ④ The company has transferred the main risks and rewards of the ownership of the
goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The customer has accepted the goods; ⑥Other signs that the customer has obtained control of the goods.
2)Revenue measurement principle
①The company measures revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to customers, and does not include payments collected on behalf of third
parties and payments expected to be returned to customers.
②If there is variable consideration in the contract, the company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount, but the transaction price including the
variable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to be
significantly turned back when the relevant uncertainty is eliminated.
③ If there is a significant financing component in the contract, the company shall determine the transaction price
based on the amount payable that the customer is assumed to pay in cash when obtaining the control of the goods
or services. The difference between the transaction price and the contract consideration shall be amortized by the
effective interest method during the contract period. On the starting date of the contract, if the company expects
that the customer pays the price within one year after obtaining control of the goods or services, the significant
financing components in the contract shall not be considered.
④If the contract contains two or more performance obligations, the company will allocate the transaction price to
each individual performance obligation based on the relative proportion of the stand-alone selling price of the
goods promised by each individual performance obligation on the starting date of the contract.
(2) The Company's standard for the revenue recognition of the sales of goods and the specific judgment standard
for the confirmation time:
The time when the Company’s domestic sales revenue is confirmed: The company delivers the goods according to

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the order. On the reconciliation date agreed with the buyer, check the goods received and inspected by the buyer
during the period from the last reconciliation date to this reconciliation date with the buyer, and the risks and
rewards are transferred to the buyer after checking, the Company issues an invoice to the buyer according to the
type, quantity and amount confirmed in the reconciliation, and confirms the realization of sales revenue on the
reconciliation day.
The time when the Company’s foreign sales revenue is confirmed: After the customs review is completed, the
Company will confirm the realization of the sales revenue according to the export date specified on the customs
declaration.
33. Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into current
gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period, than
recognized deferred income, and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred, than reckoned into current
gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
34.Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations, different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.

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(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

35. Lease
(1)Accounting for operating lease
1) Identification of lease
On the commencement date of the contract, as a lessee or a lessor, the Company evaluates whether the customer
under the contract is entitled to receive virtually all the economic benefits arising from the use of the identified
assets during the use period and is entitled to dominate the use of the identified assets during the use period. The
Company considers a contract to be a lease or a lease inclusive if a party to the contract assigns the right to control
the use of one or more identified assets for a certain period of time in exchange for consideration.
2) The Company as a lessee
At the commencement date of the lease term, the Company recognizes the right-of-use asset and lease liabilities for
all leases, except for short-term leases and low-value asset lease treated in a simplified manner. For the accounting
policies of right-of-use asset, see Note V, 23 "Right-of-Use Assets". See Note V, 29, "Lease Liability" for the
accounting policies on lease liabilities.
A short term lease means a lease with the lease term not exceeding 12 months at the commencement date of the
lease term, except for the lease including call option.
The Company includes the lease payments of short-term leases in the relevant asset cost or current profit and loss
in each period of the lease term according to the straight line method.
Low-value asset lease refers to the lease of a single leased asset whose value is less than 100,000 yuan when it is a
brand new asset.
The Company includes the lease payments of the low-value asset leases in the relevant asset cost or current profit
and loss in each period of the lease term according to the straight line method.
3) The Company as a lessor
When the Company acts as a lessee, the lease which substantially transfers all the risks and rewards related to the
ownership of the asset shall be recognized as a financial lease, and the lease other than the financial lease shall be


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recognized as an operating lease.
Operating lease
The Company recognizes the current profit or loss in various periods during the lease term for the rent in an
operating lease.The initial direct costs related to operating leases should be capitalized, and apportioned on the
same basis as the rental income recognition in the lease period, and included in the current profit and loss by
installment. The obtained variable lease payments related to the operating lease and not included in the lease
receipts are included in the current profit and loss when they actually incur.
(2) Accounting treatment of finance lease
In a finance lease, on the commencement date of the lease term, the Company takes the net lease investment as the
entry value of the finance lease receivable, and the net lease investment is the sum of the unguaranteed residual
value and the present value of lease receipts not received on the commencement date of the lease term discounting
at the interest rate implicit in lease. The Company, as the lessor, calculates and recognizes the interest income for
each period of the lease term according to the fixed periodic interest rate. The variable lease payments obtained by
the Company as the lessor, which are not included in the measurement of the net lease investment, are included in
the profit and loss of the current period when they actually occur.
The derecognition and impairment of finance lease receivable shall be treated in accordance with the provisions of
the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments and the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.
36.Other major accounting policy and estimation
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
The Company has used the expected credit loss model to assess the impairment of financial instruments. The
application of the expected credit loss model requires significant judgement and estimates, and must consider all
reasonable and evidence-based information, including forward-looking information.In making such judgments


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and estimates, the Company infers the expected changes in debtors’ credit risks based on historical repayment data
combined with economic policies, macroeconomic indicators, industry risks and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
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.
(4) 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 Companyregularly 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


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technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(5) Fair value of financial instrument
Financial instruments that do not have active markets to provide quotes need to use valuation techniques to
determine fair value.Valuation techniques include the latest transaction information, discounted cash flow methods,
and option pricing models.The Company has established a set of work processes to ensure that qualified personnel
are responsible for the calculation, verification and review of fair value.The valuation model used by the
Company uses the market information as much as possible and uses the Company-specific information as little as
possible.It should be noted that part of the information used in the valuation model requires management’s
estimation (such as discount rate, target exchange rate volatility, etc.).The Company regularly reviews the above
estimates and assumptions and makes adjustments if necessary.
(6) 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.
37.Changes of important accounting policy and estimation

(1)Changes of important accounting policies
□ Applicable     √ Not applicable

(2)Changes of important accounting estimation
□ Applicable     √ Not applicable


(3) Adjustment the financial statements at the beginning of the first year of implementation of new leasing
standards since 2021

Applicable

Whether need to adjust the items in balance sheet at the beginning of the year

√Yes     □No

Consolidate balance sheet

                                                                                                                     Unit: yuan

                   Item                        2020-12-31                        2021-01-01            Adjustments

Current assets:

        Monetary funds                             1,963,289,832.33                 1,963,289,832.33

        Settlement provisions

        Capital lent

        Trading financial asset                    3,518,432,939.10                 3,518,432,939.10




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     Derivative financial assets

     Note receivable                    1,657,315,723.56             1,657,315,723.56

     Account receivable                 2,824,780,352.41             2,824,780,352.41

     Receivables financing              1,005,524,477.88             1,005,524,477.88

     Account paid in advance             151,873,357.76               151,873,357.76

     Insurance receivable
     Reinsurance receivables

     Contract reserve of reinsurance
receivable

     Other account receivables            54,209,580.88                54,209,580.88

         Including: Interest
receivable

                 Dividend receivable      49,000,000.00                49,000,000.00

     Buying back the sale of
financial assets

     Inventory                          2,877,182,174.64             2,877,182,174.64

     Contractual assets

     Assets held for sale

     Non-current asset due within
one year

     Other current assets               2,137,921,113.61             2,137,921,113.61

Total current assets                   16,190,529,552.17            16,190,529,552.17

Non-current assets:

     Loans and payments on behalf

     Debt investment

     Other debt investment

     Long-term account receivables

     Long-term equity investment        4,801,488,290.97             4,801,488,290.97

     Other equity instrument
                                         285,048,000.00               285,048,000.00
investment

     Other non-current financial
                                        1,805,788,421.00             1,805,788,421.00
assets

     Investment real estate               20,886,681.62                20,886,681.62

     Fixed assets                       2,882,230,191.08             2,870,351,470.37            -11,878,720.71

     Construction in progress            243,795,493.04               243,795,493.04


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     Productive biological assets

     Oil and gas assets

     Right-of-use asset                                                   23,828,070.70              23,828,070.70

     Intangible assets                      454,412,947.69               454,412,947.69

     Development expenses

     Goodwill                               257,800,696.32               257,800,696.32

     Long-term deferred expenses             15,062,171.09                15,062,171.09

     Deferred income tax assets             198,393,501.50               198,393,501.50

     Other non-current assets               195,259,441.73               195,259,441.73

Total non-current assets                  11,160,165,836.04            11,172,115,186.03             11,949,349.99

Total assets                              27,350,695,388.21            27,362,644,738.20             11,949,349.99

Current liabilities:

     Short-term borrowings                  302,238,600.05               302,238,600.05
     Loan from central bank

     Capital borrowed

     Trading financial liability

     Derivative financial liability

     Note payable                          2,462,592,372.82             2,462,592,372.82

     Account payable                       4,100,984,240.39             4,100,984,240.39

     Account received in advance               4,071,236.87                 4,071,236.87

     Contractual liability                   81,717,387.25                81,717,387.25
     Selling financial asset of
repurchase

     Absorbing deposit and
interbank deposit

     Security trading of agency

     Security sales of agency

     Wage payable                           332,421,811.82               332,421,811.82

     Taxes payable                           67,493,690.29                67,493,690.29

     Other account payable                  361,556,257.42               361,556,257.42

        Including: Interest payable                4,862.22                     4,862.22

                       Dividend payable

     Commission charge and
commission payable



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     Reinsurance payable

     Liability held for sale

     Non-current liabilities due
                                           36,914,242.02                36,914,242.02
within one year

     Other current liabilities            222,871,087.33               222,871,087.33

Total current liabilities                7,972,860,926.26             7,972,860,926.26

Non-current liabilities:

     Insurance contract reserve

     Long-term loans                        3,050,640.97                 3,050,640.97

     Bonds payable

        Including: Preferred stock

                     Perpetual capital
securities

     Lease liability                                                    17,811,603.05              17,811,603.05

     Long-term account payable             39,479,218.17                33,616,965.11              -5,862,253.06

     Long-term wages payable              181,980,293.94               181,980,293.94

     Accrual liability

     Deferred income                      328,204,476.73               328,204,476.73

     Deferred income tax liabilities       30,653,933.12                30,653,933.12

     Other non-current liabilities

Total non-current liabilities             583,368,562.93               595,317,912.92              11,949,349.99

Total liabilities                        8,556,229,489.19             8,568,178,839.18             11,949,349.99

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              3,294,242,368.28             3,294,242,368.28

     Less: Inventory shares               303,627,977.74               303,627,977.74

     Other comprehensive income            13,916,619.47                13,916,619.47

     Reasonable reserve                     2,333,490.03                 2,333,490.03

     Surplus public reserve               510,100,496.00               510,100,496.00

     Provision of general risk



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     Retained profit                       13,756,102,424.62            13,756,102,424.62

Total owner’ s equity attributable to
                                           18,282,017,990.66            18,282,017,990.66
parent company

     Minority interests                      512,447,908.36               512,447,908.36

Total owner’ s equity                     18,794,465,899.02            18,794,465,899.02

Total liabilities and owner’ s equity     27,350,695,388.21            27,362,644,738.20             11,949,349.99



Balance sheet of parent company

                                                                                                             Unit: yuan

                  Item                   2020-12-31                   2021-01-01               Adjustments

Current assets:

     Monetary funds                         1,157,684,053.05             1,157,684,053.05

     Trading financial asset                3,452,348,980.19             3,452,348,980.19

     Derivative financial assets

     Note receivable                         422,246,979.39               422,246,979.39

     Account receivable                      982,782,279.22               982,782,279.22

     Receivable financing

     Accounts paid in advance                 75,650,090.49                75,650,090.49

     Other account receivable                197,335,714.63               197,335,714.63

        Including: Interest
                                                 897,777.78                   897,777.78
receivable

                    Dividend
receivable

     Inventories                             725,276,241.43               725,276,241.43

     Contractual assets

     Assets held for sale

     Non-current assets maturing
within one year

     Other current assets                   2,057,772,839.50             2,057,772,839.50

Total current assets                        9,071,097,177.90             9,071,097,177.90

Non-current assets:

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term equity investments           5,978,128,303.88             5,978,128,303.88


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     Investment in other equity
                                            209,108,000.00               209,108,000.00
instrument

     Other non-current financial
                                           1,805,788,421.00             1,805,788,421.00
assets

     Investment real estate

     Fixed assets                          1,758,198,856.53             1,758,198,856.53

     Construction in progress               154,741,266.85               154,741,266.85

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets                                                    1,699,807.76              1,699,807.76

     Intangible assets                      208,112,706.57               208,112,706.57

     Research and development
costs

     Goodwill

     Long-term deferred expenses

     Deferred income tax assets              76,508,392.85                76,508,392.85

     Other non-current assets               117,013,906.01               117,013,906.01

Total non-current assets                  10,307,599,853.69            10,309,299,661.45              1,699,807.76

Total assets                              19,378,697,031.59            19,380,396,839.35              1,699,807.76

Current liabilities:

     Short-term borrowings                  102,088,888.89               102,088,888.89

     Trading financial liability

     Derivative financial liability

     Notes payable                          448,901,718.36               448,901,718.36

     Account payable                       1,265,845,068.26             1,265,845,068.26

     Accounts received in advance

     Contractual liability                     6,209,575.73                 6,209,575.73

     Wage payable                           216,870,819.60               216,870,819.60

     Taxes payable                           32,974,322.59                32,974,322.59

     Other accounts payable                 339,096,991.12               339,096,991.12

         Including: Interest payable

                       Dividend payable

     Liability held for sale

     Non-current liabilities due



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within one year

     Other current liabilities             182,611,991.54               182,611,991.54

Total current liabilities                 2,594,599,376.09             2,594,599,376.09

Non-current liabilities:

     Long-term loans

     Bonds payable

        Including: Preferred stock

                     Perpetual capital
securities

     Lease liability                                                       1,699,807.76              1,699,807.76

     Long-term account payable

     Long term employee
                                           176,245,345.03               176,245,345.03
compensation payable

     Accrued liabilities

     Deferred income                       285,714,239.98               285,714,239.98

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities              461,959,585.01               463,659,392.77               1,699,807.76

Total liabilities                         3,056,558,961.10             3,058,258,768.86              1,699,807.76

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               3,407,732,016.61             3,407,732,016.61

     Less: Inventory shares                303,627,977.74               303,627,977.74

     Other comprehensive income

     Special reserve

     Surplus reserve                       510,100,496.00               510,100,496.00

     Retained profit                     11,698,982,965.62            11,698,982,965.62

Total owner’s equity                    16,322,138,070.49            16,322,138,070.49

Total liabilities and owner’s equity    19,378,697,031.59            19,380,396,839.35              1,699,807.76




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(4) Retrospective adjustment of early comparison data description when initially implemented the new
leasing standards since 2021

□ Applicable   √ Not applicable


VI. Taxation

1. Major taxes and tax rates

          Tax                                      Basis                                                  Tax rate
                        General taxpayers of the company and domestic
                        subsidiaries calculate output tax at the tax rates of 13%,
                        9%, 6%, and 5% of taxable income, and calculate and pay
VAT                                                                                   13%, 9%, 6%, Collection rate 5%
                        value-added tax based on the difference after deducting
                        the input VAT that is allowed to be deducted in the current
                        period.
City maintaining &
                        Turnover tax payable                                          7%
construction tax
                                                                                      Except for overseas subsidiaries which calculate
                                                                                      and pay the taxes according to the statutory tax
Corporation income                                                                    rate of the country or region where they are
                        Taxable income
tax                                                                                   located, the corporate income tax of domestic
                                                                                      companies is calculated and paid at 15%, 20%,
                                                                                      or 25% of the taxable income.
Educational surtax      Turnover tax payable                                          5%

Disclose reasons for different taxpaying body

                                                Taxpaying body                                                        Income tax rate
WFMA, WFCA, WFTR, WFAM, WFAS, WFLD(Nanchang), WFDT, Borit                                                        25%
WFLD(Wuhan)                                                                                                      20%
The Company, WFJN, WFLD, WFTT, WFLD(Chongqing), WFSC                                                             15%
SPV、IRD                                                                                                         22%

2. Tax incentives
The Company, WFJN, WFLD, WFTT and WFSC are accredited as a high-tech enterprise in 2020, and enjoy a preferential income
tax rate of 15% from 1 January 2020 to 31 December 2022.
The State Administration of Taxation announced the first item of Announcement of the State Administration of Taxation on the
Enterprise Income Tax Issues Concerning the Implementation of the Western Development Strategy No. 12 of 2012 that from January
1, 2011 to December 31, 2020, the enterprises located in the west region and mainly engaged in the industrial projects stipulated in
the Catalogue of Encouragement Industries in the Western Region, and whose main business income accounting for more than 70%
of the total income of the enterprise in the current year can pay the corporate income tax at the tax rate of 15%. According to the first
article of the Announcement on Continuation of the Enterprise Income Tax Policy for the Western Development issued by the
Ministry of Finance, the State Administration of Taxation and the National Development and Reform Commission, from January 1,
2021 to December 31, 2030, the enterprise income tax of enterprises in the encouraged industries located in the western regions will
be levied at a reduced rate of 15%. The encouraged industrial enterprises mentioned in this article refer to the enterprises whose main


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business is the industrial projects specified in the Catalogue of Encouraged Industries in the Western Region and whose main
business income accounts for more than 60% of the total enterprise income. In 2021, WFLD (Chongqing) paid its corporate income
tax at the tax rate of 15%.
In 2021, WFLD (Wuhan) met the standards of small and low-profit enterprises, and the part of taxable income that did not exceed 1
million Yuan was included in the taxable income at a reduced rate of 12.5%, and the corporate income tax was paid at the tax rate of
20%; while the part of the taxable income exceeding 1 million Yuan but not exceeding 3 million Yuan was included in the taxable
income at a reduced rate of 50%, and the corporate income tax was paid at the tax rate of 20%.

VII. Notes to major items in consolidated financial statements
1. Monetary funds
                                                                                                                         Unit: yuan

                                      Item                                             Ending balance         Opening balance
Cash on hand                                                                                     118,837.77                 507.66
Cash in bank                                                                             2,446,888,098.49        1,905,945,511.04
Other Monetary funds                                                                        12,220,041.75           57,343,813.63
Total                                                                                    2,459,226,978.01        1,963,289,832.33
   Including: Total amount saving aboard                                                   100,814,171.17           33,723,245.25
          Total amount with restriction on use for mortgage, pledge or freeze               12,220,041.75           57,343,813.63

Other explanation

The ending balance of other monetary funds includes bank acceptance bill deposit 5,956,935.70 Yuan, Mastercard deposit
206,740.00 Yuan, in-transit foreign exchange funds 2,630,244.12 Yuan, letter of credit guarantee deposit 587,241.00 Yuan, and
frozen dividends 2,838,880.93 Yuan. The in-transit foreign exchange fund of 2,630,244.12 Yuan is the final payment of the
investment in Protean Holding Corp; as of June 30, 2021, the amount is still in the foreign exchange supervision account.The frozen
dividend of 2,838,880.93 Yuan represents the part of dividends distributed by SDEC(stock code:600841) and Miracle Automation
(stock code:002009) from 2017 to 2020 held by the Company as financial assets available for sale. According to the notices
numbered Yue 03MC [2016]2490 and Yue 03MC [2016]2492 served by Guangdong Shenzhen Intermediate People’s Court, these
dividends were frozen.

2. Trading financial asset

                                                                                                                         Unit: yuan

                              Item                                      Ending balance                    Opening balance
Financial assets measured at fair value and whose changes are
                                                                                5,056,585,067.83                 3,518,432,939.10
included in current profit or loss
   Including:
SDEC                                                                             118,317,036.00                    140,395,956.00
Miracle Automation                                                                 56,991,000.00                    47,712,300.00
Lifan Technology                                                                       65,861.56
Financial products                                                              4,881,211,170.27                 3,330,324,683.10
   Including:
Total                                                                           5,056,585,067.83                 3,518,432,939.10




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3. Note receivable

(1) Classification of notes receivable

                                                                                                                                     Unit: yuan

                    Item                                      Ending balance                                  Opening balance

Bank acceptance bill                                                       1,252,354,768.24                                 1,312,571,695.46

Trade acceptance bill                                                       148,572,554.58                                     344,744,028.10

Total                                                                      1,400,927,322.82                                 1,657,315,723.56

                                                                                                                                     Unit: yuan

                                       Ending balance                                                Opening balance

                                                Bad debt                                                         Bad debt
                        Book balance                                                  Book balance
                                                provision                                                       provision
  Category
                                                      Prov    Book value                                               Prov     Book value
                                                Amo                                                             Amo
                    Amount             Ratio          ision                         Amount            Ratio            ision
                                                unt                                                              unt
                                                      ratio                                                            ratio

  Including:

Note
receivable
with bad
debt             1,400,927,322.82 100.00%                     1,400,927,322.82    1,657,315,723.56 100.00%                     1,657,315,723.56

provision
accrual on
portfolio

  Including:

Portfolio 1:
bank
                 1,252,354,768.24      89.39%                 1,252,354,768.24    1,312,571,695.46    79.20%                   1,312,571,695.46
acceptance
bill

Portfolio 2:
trade
                   148,572,554.58      10.61%                  148,572,554.58      344,744,028.10     20.80%                    344,744,028.10
acceptance
bill

Total            1,400,927,322.82 100.00%                     1,400,927,322.82    1,657,315,723.56 100.00%                     1,657,315,723.56

If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose related information about bad-debt provisions:

□ Applicable √ Not applicable




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       (2) Bad debt provision accrual collected or switch back

       Provision for bad debts in the current period:

       □ Applicable √ Not applicable


       (3) Notes receivable already pledged by the Company at the end of the period

                                                                                                                                         Unit: yuan

                                         Item                                                   Amount pledge at period-end

       Bank acceptance bill                                                                                                        657,240,752.54

       Trade acceptance bill                                                                                                        98,580,306.00

       Total                                                                                                                       755,821,058.54


       (4) Notes endorsement or discount and undue on balance sheet date

                                                                                                                                         Unit: yuan

                           Item                            Amount derecognition at period-end          Amount not derecognition at period-end

       Bank acceptance bill                                                        222,217,625.04

       Total                                                                       222,217,625.04


       (5) Notes transfer to account receivable due for failure implementation by drawer at period-end

                                                                                                                                         Unit: yuan

                                         Item                                      Amount transfer to account receivable at period-end

       Trade acceptance bill                                                                                                         7,300,000.00

       Total                                                                                                                         7,300,000.00


       (6) Note receivable actually written-off in the period

       Nil

       4. Account receivable
       (1) Classification of account receivable
                                                                                                                                         Unit: yuan

                                         Ending balance                                                          Opening balance

                  Book balance             Bad debt provision                            Book balance               Bad debt provision
Category
                                                        Provisio    Book value                                                     Provisio   Book value
               Amount          Ratio        Amount                                     Amount            Ratio      Amount
                                                          n ratio                                                                  n ratio

Account
receivable
               78,070,886.32      1.81% 78,070,886.32 100.00%                          80,362,095.35      2.74%    80,362,095.35 100.00%
with bad
debt


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provision
accrual on
a single
basis

Including:

Account
receivable
with bad
debt              4,228,837,350.68   98.19% 15,306,828.34   0.36% 4,213,530,522.34   2,847,529,398.11    97.26%    22,749,045.70      0.80% 2,824,780,352.41

provision
accrual on
portfolio

Including:

Total             4,306,908,237.00 100.00% 93,377,714.66    2.17% 4,213,530,522.34 2,927,891,493.46 100.00% 103,111,141.05            3.52% 2,824,780,352.41



        Bad debt provision accrual on single basis: 78,070,886.32 yuan

                                                                                                                                         Unit: yuan

                                                                                           Ending balance
           Name
                                                       Book balance            Bad debt provision    Provision ratio     Accrual causes
                                                                                                                         Have difficulty in
           Hubei Meiyang Auto Industry Co., Ltd.              20,139,669.45          20,139,669.45             100.00%
                                                                                                                         collection
                                                                                                                         Have difficulty in
           Hunan Leopaard Auto Co., Ltd.                        8,910,778.54          8,910,778.54             100.00%
                                                                                                                         collection
           Jiangxi Dorcen Automobile Industry Co.,                                                                       Have difficulty in
                                                                7,287,632.16          7,287,632.16             100.00%
           Ltd.                                                                                                          collection
                                                                                                                         Have difficulty in
           Jiangxi Dorcen Automobile Co., Ltd.                  2,518,959.01          2,518,959.01             100.00%
                                                                                                                         collection
           Linyi Zotye Automobile components                                                                             Have difficulty in
                                                                6,193,466.77          6,193,466.77             100.00%
           Manufacturing Co., Ltd.                                                                                       collection
           Changchun FAW Sihuan Engine                                                                                   Have difficulty in
                                                                5,852,415.65          5,852,415.65             100.00%
           Manufacturing Co., Ltd                                                                                        collection
                                                                                                                         Have difficulty in
           BD bills                                             7,300,000.00          7,300,000.00             100.00%
                                                                                                                         collection
                                                                                                                         Have difficulty in
           Tongling Ruineng Purchasing Co., Ltd.                4,320,454.34          4,320,454.34             100.00%
                                                                                                                         collection
           Brilliance Automotive Group Holdings                                                                          Have difficulty in
                                                                3,469,091.33          3,469,091.33             100.00%
           Co., Ltd.                                                                                                     collection
           Zhejiang Zotye Auto Manufacturing Co.,                                                                        Have difficulty in
                                                                3,217,763.27          3,217,763.27             100.00%
           Ltd.                                                                                                          collection
                                                                                                                         Have difficulty in
           Dongfeng Chaoyang Diesel Co., Ltd.                   1,953,054.31          1,953,054.31             100.00%
                                                                                                                         collection


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Jiangsu Kawei Auto Industrial Group Co.,                                                                        Have difficulty in
                                                       1,932,476.26          1,932,476.26             100.00%
Ltd.                                                                                                            collection
                                                                                                                Have difficulty in
Wuxi Kipor Machinery Co., Ltd                          1,820,798.21          1,820,798.21             100.00%
                                                                                                                collection
Jiangsu Jintan Automobile Industry Co.,                                                                         Have difficulty in
                                                       1,059,798.43          1,059,798.43             100.00%
Ltd.                                                                                                            collection
                                                                                                                Have difficulty in
Other custom                                           2,094,528.59          2,094,528.59             100.00%
                                                                                                                collection
Total                                                78,070,886.32          78,070,886.32 --                    --



Bad debt provision accrual on portfolio: 15,306,828.34 yuan

                                                                                                                                Unit: yuan

                                                                                 Ending balance
                 Name
                                               Book balance                Bad debt provision                   Provision ratio

Within 6 months                                   4,158,297,859.50                                0.00

6 months to 1 year                                   48,430,800.92                      4,843,080.10                               10.00%

1-2 years                                            12,482,507.42                      2,496,501.48                               20.00%

2-3 years                                             2,764,893.44                      1,105,957.36                               40.00%

Over 3 years                                          6,861,289.40                      6,861,289.40                              100.00%

Total                                             4,228,837,350.68                     15,306,828.34 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:

□ Applicable √ Not applicable
By account age

                                                                                                                                Unit: yuan

                             Account age                                                       Ending balance

Within 1 year (including 1 year)                                                                                       4,209,441,733.57

Including: Within 6 months                                                                                             4,158,297,859.50

        6 months to 1 year                                                                                                   51,143,874.07

1-2 years                                                                                                                    42,745,575.05

2-3 years                                                                                                                    37,454,178.06

Over 3 years                                                                                                                 17,266,750.32

  3-4 years                                                                                                                  17,266,750.32

Total                                                                                                                  4,306,908,237.00


(2) Bad debt provision accrual collected or switch back



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Bad debt provision accrual in the period:

                                                                                                                              Unit: yuan

                                                             Amount changed in the period

    Category        Opening balance                          Collected or                                              Ending balance
                                            Accrual                               Written-off           Other
                                                                  reversal

Bad debt
                      103,111,141.05         522,080.22           7,103,842.30      3,133,078.65         -18,585.66      93,377,714.66
provision

Total                 103,111,141.05         522,080.22           7,103,842.30      3,133,078.65         -18,585.66      93,377,714.66

Important bad debt provision collected or switch back: nil

(3) Account receivable actual charge off in the Period

                                                                                                                              Unit: yuan

                                    Item                                                           Amount charge off

Fujian Zhao’an Country Minyue Bianjie Agricultural Machinery
                                                                                                                           1,111,007.12
Automobile Components Co., Ltd.

Penglai Branch of Beiben Truck Group Co., Ltd.                                                                              677,390.63

Guangxi Nanning Kaiyuan Auto Parts Co., Ltd.                                                                                666,203.00

Engine Branch of Anhui Jianghuai Automobile Group Co., Ltd.                                                                 349,650.00

Laien (China) Power Co., Ltd.                                                                                               144,447.46

Chongqing Lifan Passenger Vehicle Co., Ltd.                                                                                 137,880.44

Kunming Yunnei Power Co., Ltd.                                                                                               46,500.00

Total                                                                                                                      3,133,078.65

Major charge-off for the major receivable: Nil


(4) Top 5 receivables at ending balance by arrears party

                                                                                                                              Unit: yuan

                                Ending balance of account          Ratio in total ending balance of     Ending balance of bad debt
            Name
                                        receivable                       account receivables                     reserve

RBCD                                             932,304,823.41                             21.65%                           59,766.11

Custom 1                                         292,650,493.73                                6.79%                        111,680.87

Robert Bosch                                     248,253,462.67                                5.76%                        758,645.71

Custom 3                                         182,795,761.40                                4.24%                        201,168.71

Custom 4                                         169,559,140.89                                3.94%                       5,670,427.05

Total                                        1,825,563,682.10                               42.38%




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(5) Account receivable derecognition due to financial assets transfer

Nil


(6) Assets and liabilities resulted by account receivable transfer and continues involvement

Nil

5. Receivable financing

                                                                                                                                  Unit: yuan

                      Item                                    Ending balance                              Opening balance

Bank acceptance bill                                                         595,411,852.58                              1,005,524,477.88

                      Total                                                  595,411,852.58                              1,005,524,477.88

Increase and decrease in current period and changes in fair value of receivables financing

□ Applicable √ Not applicable

If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss,
please refer to the disclosure method of other account receivables in aspect of impairment provision:

□ Applicable √ Not applicable

Other explanation:
During the management of enterprise liquidity, the company will discount or endorse transfers before the maturity of some bills, the
business model for managing bills receivable is to collect contractual cash flows and sell the financial asset, so it is classified as
financial assets measured at fair value and whose changes are included in other comprehensive income, which is listed in receivables
financing.
Notes receivable already pledged by the Company at the end of the period

                                  Item                                                  Amount pledge at period-end

Bank acceptance bill                                                                                                      155,506,772.41

Total                                                                                                                     155,506,772.41


6. Account paid in advance
(1) Account age of account paid in advance
                                                                                                                                  Unit: yuan

                                                  Ending balance                                       Opening balance
        Account age
                                         Amount                    Ratio                      Amount                      Ratio

Within 1 year                             154,474,608.88                    91.19%             146,877,271.37                      96.71%

1-2 years                                  12,497,814.67                     7.38%               2,799,827.49                       1.84%

2-3 years                                   1,411,435.14                     0.83%               1,254,109.33                       0.83%

Over 3 years                                1,006,272.63                     0.59%                942,149.57                        0.62%

Total                                     169,390,131.32            --                         151,873,357.76               --

Explanation on reasons of failure to settle on important advance payment with age over one year: nil



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(2) Top 5 account paid in advance at ending balance by prepayment object

Total year-end balance of top five account paid in advance by prepayment object amounted to 82,660,146.35 Yuan, takes 48.80
percent of the total advance payment at year-end.

7. Other account receivables

                                                                                                                   Unit: yuan

                    Item                             Ending balance                           Opening balance

Dividend receivable                                               479,171,532.95                            49,000,000.00

Other account receivables                                          10,720,346.58                                5,209,580.88

Total                                                             489,891,879.53                            54,209,580.88

(1) Interest receivable

1) Category of interest receivable

Nil


2) Significant overdue interest

Nil


3) Accrual of bad debt provision

□ Applicable √ Not applicable


(2) Dividend receivable

1) Category of dividend receivable

                                                                                                                   Unit: yuan

            Item (or invested enterprise)                   Ending balance                      Opening balance

Wuxi Weifu Environmental Catalysts. Co., Ltd.                                                               49,000,000.00

RBCD                                                                  279,062,772.15

Zhonglian Automobile Electronics Co., Ltd.                            198,800,000.00

SDEC                                                                     1,077,970.80

Miracle Automation                                                           230,790.00

Total                                                                 479,171,532.95                        49,000,000.00

2) Important dividend receivable with account age over one year
Nil


3) Accrual of bad debt provision

□ Applicable √ Not applicable


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(3) Other account receivables

1) Other account receivables classification by nature

                                                                                                                              Unit: yuan

                    Nature                                  Ending book balance                        Opening book balance

Intercourse funds from units                                                  1,723,254.03

Cash deposit                                                                  5,809,934.74                              5,650,143.62

Staff loans and petty cash                                                    2,849,230.03                                766,301.05

Other                                                                         3,163,861.46                              1,651,737.93

Total                                                                        13,546,280.26                              8,068,182.60


2) Accrual of bad debt provision
                                                                                                                              Unit: yuan

                                                  Phase I                 Phase II               Phase III
                                                                   Expected credit losses Expected credit losses
            Bad debt provision             Expected credit losses for the entire duration for the entire duration       Total
                                           over next 12 months        (without credit           (with credit
                                                                   impairment occurred) impairment occurred)
Balance on Jan. 1, 2021                             2,826,778.32                                       31,823.40        2,858,601.72
Balance of Jan. 1, 2021 in the period              ——                    ——                    ——                 ——
Current accrual                                        27,002.96                                                              27,002.96
Current reversal                                       59,671.00                                                              59,671.00
Balance on Jun. 30, 2021                            2,794,110.28                                       31,823.40        2,825,933.68
Change of book balance of loss provision with amount has major changes in the period
□ Applicable    √ Not applicable
By account age

                                                                                                                              Unit: yuan

                             Account age                                                       Ending balance

Within 1 year (including 1 year)                                                                                       10,532,866.05

Including: Within 6 months                                                                                             10,362,836.45

        6 months to 1 year                                                                                                170,029.60

1-2 years                                                                                                                 251,903.40

2-3 years                                                                                                                     47,365.81

Over 3 years                                                                                                            2,714,145.00

  3-4 years                                                                                                             2,714,145.00

Total                                                                                                                  13,546,280.26




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3) Bad debt provision accrual, collected or switch back

Bad debt provision accrual in the period:

                                                                                                                                 Unit: yuan

                                                                     Amount changed in the period
        Category          Opening balance                                                                                 Ending balance
                                                     Accrual       Collected or reversal   Written-off        Other

Bad debt provision            2,858,601.72             27,002.96              59,671.00                                       2,825,933.68

Total                         2,858,601.72             27,002.96              59,671.00                                       2,825,933.68

Including the important bad debt provision switch back or collected in the period: nil


4) Other receivables actually written-off during the reporting period
Nil


5) Top 5 other receivables at ending balance by arrears party

                                                                                                                                 Unit: yuan

                                                                                                Ratio in total ending
                                                           Ending                                                       Ending balance of
            Enterprise                 Nature                               Account age           balance of other
                                                           balance                                                      bad debt reserve
                                                                                                    receivables

Ningbo Jiangbei High-Tech
Industry Park Development         Performance bond       1,767,000.00 Over 3 years                           13.04%           1,767,000.00
Construction Co., Ltd.

                                  Intercourse funds
Robert Bosch Company                                     1,723,254.03 Within 6 months                        12.72%
                                  from units

Wuxi China Resources Gas          Intercourse funds
                                                         1,026,000.00 Within 6 months                         7.57%
Co., Ltd.                         from units

Zhenkunxing Industrial
Supermarket (Shanghai) Co., Security deposit             1,000,000.00 Within 6 months                         7.38%
Ltd.

Chongqing       airport   group
                                  Security deposit         636,710.00 Within 1 year                           4.70%              63,671.00
limited company

Total                                     --             6,152,964.03                      --                45.41%           1,830,671.00


6) Other account receivables related to government grants
Nil


7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil




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8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil

8. Inventory
(1) Category of inventory
                                                                                                                                 Unit: yuan

                                         Ending balance                                              Opening balance
                                           Inventory                                                    Inventory
                                          depreciation                                                 depreciation
                                           reserve or                                                   reserve or
        Item                              Provision for                                               Provision for
                      Book balance                             Book value          Book balance                              Book value
                                         impairment of                                                impairment of
                                            contract                                                     contract
                                          performance                                                 performance
                                                costs                                                     costs
Raw materials         659,908,030.27       92,429,613.27      567,478,417.00       584,188,987.86      73,833,368.32     510,355,619.54
Goods in process      398,439,321.44       16,216,612.81      382,222,708.63       415,445,852.86      14,589,096.65     400,856,756.21
Finished goods       1,443,500,223.57     123,480,148.98 1,320,020,074.59 2,124,817,656.18            158,847,857.29 1,965,969,798.89
Total                2,501,847,575.28     232,126,375.06 2,269,721,200.22 3,124,452,496.90            247,270,322.26 2,877,182,174.64


(2) Inventory depreciation reserve or Provision for impairment of contract performance costs
                                                                                                                                 Unit: yuan

                                                   Current increased                      Current decreased

        Item         Opening balance                                                                                    Ending balance
                                                                                   Switch back or
                                            Accrual               Other                                   Other
                                                                                     write-off

Raw materials          73,833,368.32       28,089,676.40          -154,809.52         9,338,621.93                           92,429,613.27

Goods in process       14,589,096.65        9,079,391.73                              7,451,875.57                           16,216,612.81

Finished goods        158,847,857.29       66,828,319.31               -2,196.18   102,193,831.44                        123,480,148.98

Total                 247,270,322.26      103,997,387.44          -157,005.70      118,984,328.94                        232,126,375.06

① Net 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.
② Accrual basis for inventory depreciation reserve:
         Item           Accrual basis for inventory impairment provision                     Specific basis for recognition
Materials in stock    The    materials   sold     due   to   finished    goods Results from the estimated sale price of such inventory
                      manufactured, its net realizable value is lower than less the cost what will happen, estimated sales expenses
                      the book value                                           and relevant taxes till the goods completed
Goods in process      The goods in process sold due to finished goods Results from the estimated sale price of such inventory
                      manufactured, its net realizable value is lower than less the cost what will happen, estimated sales expenses
                      the book value                                           and relevant taxes till the goods completed
Cash on hand          Accrual basis for inventory impairment provision         Specific basis for recognition



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 ③ Reasons of write-off for inventory falling price reserves:
             Item                                                        Reasons of write-off
 Materials in stock         Used for production and the finished goods are realized sales
 Goods in process           Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
 Finished goods             Sales in the Period

 (3) Explanation on capitalization of borrowing costs at ending balance of inventory
 Nil

 (4) Assets completed without settlement from construction contract at period-end
 Nil

 9. Other current assets
                                                                                                                                        Unit: yuan

                          Item                                  Ending balance                                   Opening balance
  Structured deposits                                                                                                           1,925,000,000.00
  Receivable export tax rebates                                                  10,971,495.97                                      5,286,965.71
  VAT refund receivable                                                              2,116,911.02
  Prepaid taxes and VAT retained                                                 46,457,458.75                                    200,524,304.70
  Input tax to be deducted and certification                                         1,367,249.89                                     178,073.42
  Other                                                                              3,657,354.86                                   6,931,769.78
  Total                                                                          64,570,470.49                                  2,137,921,113.61

 10. Long-term equity investments

                                                                                                                                        Unit: yuan

                                                                Current changes (+, -)
                                                                               Othe                                                             Endi
                                                                                r                                                                ng
                                                                               com                                                              bala
                                                                                       Othe
                                                                               preh                            Imp                              nce
       The           Opening                                   Investment                r     Cash dividend
                                                                               ensi                            airm          Ending balance      of
  invested      balance (book        Additional    Capital      gain/loss              equit     or profit            Othe
                                                                                ve                             ent            (book value)      depr
   entity             value)         investment   reduction    recognized               y      announced to            r
                                                                               inco                            accr                             eciat
                                                              under equity             chan       issued
                                                                               me                              ual                              ion
                                                                                        ge
                                                                               adju                                                             reser
                                                                               stme                                                             ves
                                                                                nt
I. Joint venture
II. Associated enterprise
Wuxi Weifu
Environme
ntal                677,317,176.28                             92,780,012.84                                                   770,097,189.12

Catalysts.
Co., Ltd.


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RBCD            2,800,589,709.40                                 670,070,175.48          558,125,544.30           2,912,534,340.58

Zhonglian
Automobile
                1,237,548,856.31                                 178,295,216.97          198,800,000.00           1,217,044,073.28
Electronics
Co., Ltd.
Weifu
Precision
Machinery
                  74,854,070.65                                   19,897,099.40                                     94,751,170.05
Manufactur
ing Co.,
Ltd.
Shinwell
Automobile
Technology           982,750.11                   9,000,000.00     8,017,249.89

(Wuxi) Co.,
Ltd.
Changchun
Xuyang
Weifu
Automobile
                  10,195,728.22                                        3,225.46                                     10,198,953.68
Component
s
Technology
Co., Ltd.
Precors
                                   5,904,909.38                       -7,458.98                           92.99       5,897,543.39
GmbH
Subtotal        4,801,488,290.97 5,904,909.38 9,000,000.00 969,055,521.06                756,925,544.30   92.99 5,010,523,270.10

Total           4,801,488,290.97 5,904,909.38 9,000,000.00 969,055,521.06                756,925,544.30   92.99 5,010,523,270.10

Other explanation

WFHT management approved Borit's investment plan for Precors GmbH in March 2021. Borit acquired 8.11% of Precors share equity
with 751,905 in May 2021.( Precors GmbH, founded in 2017, Germany, and active in the R&D and application of carbon-based
coating on metal bipolar plates used in fuel cell. Its core technology is an efficient and highly scalable vacuum-free deposition
nano-carbon application process.)

    11. Other equity instrument investment

                                                                                                                             Unit: yuan

                            Item                                        Ending balance                    Opening balance
    Wuxi Xidong Science & Technology Industrial
                                                                                     5,000,000.00                        5,000,000.00
    Park
    Beijing Zhike Industry Investment Holding Group
                                                                                    75,940,000.00                       75,940,000.00
    Co., Ltd.
    Rare earth Catalysis Innovation Research Institute
                                                                                     4,108,000.00                        4,108,000.00
    (Dongying) Co., Ltd.

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Wuxi Xichang Microchip Semi-Conductor                                        200,000,000.00                        200,000,000.00
Total                                                                        285,048,000.00                        285,048,000.00

Disclosure of the non-trading equity instrument investment item by item

Nil

12. Other non-current financial assets

                                                                                                                            Unit: yuan

                      Item                                 Ending balance                              Opening balance

Tradable financial assets holding for over
                                                                          880,000,000.00                          1,467,000,000.00
one year

Equity instrument investment                                              446,356,290.34                           338,788,421.00

Total                                                                1,326,356,290.34                             1,805,788,421.00


13. Investment real estate

(1) Investment real estate measured by cost

√ Applicable □ Not applicable

                                                                                                                            Unit: yuan

                                                                                              Construction in
                  Item                       House and Building     Land use right                                       Total
                                                                                                 progress

I. Original book value

1.Opening balance                                   65,524,052.61                                                    65,524,052.61

2.Current increased

(1) Outsourcing

(2) Inventory\fixed
assets\construction in process
transfer-in

(3) Increased by combination

3.Current decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance                                    65,524,052.61                                                    65,524,052.61

II. Accumulated depreciation and
accumulated amortization

1.Opening balance                                   44,637,370.99                                                    44,637,370.99

2.Current increased                                    761,915.13                                                         761,915.13

(1) Accrual or amortization                            761,915.13                                                         761,915.13



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3.Current decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance                           45,399,286.12                                                      45,399,286.12

III. Depreciation reserves

1.Opening balance

2.Current increased

(1) Accrual

3.Current decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance

IV. Book value

1.Ending Book value                        20,124,766.49                                                      20,124,766.49

2.Opening Book value                       20,886,681.62                                                      20,886,681.62


(2) Investment real estate measured at fair value

□ Applicable √ Not applicable


(3) Investment real estate without property certification held

Nil

14. Fixed assets

                                                                                                                   Unit: yuan

                    Item                            Ending balance                            Opening balance
Fixed assets                                                   2,903,123,563.06                             2,870,351,470.37
Total                                                          2,903,123,563.06                             2,870,351,470.37

(1) Fixed assets
                                                                                                                   Unit: yuan

                                    House and         Machinery         Transportation   Electronic and
                 Item                                                                                            Total
                                     Building         equipment          equipment       other equipment

I. Original book value:

  1.Opening balance               1,584,594,589.53 3,331,362,060.16      30,281,281.50    532,011,701.70 5,478,249,632.89

  2.Current increased               18,331,925.13      94,418,815.57      2,927,656.98    120,462,825.85     236,141,223.53

(1) Purchase                                               772,566.37                            6,795.35        779,361.72

(2) Construction in progress        18,331,925.13      86,193,840.99      2,927,656.98    120,456,030.50     227,909,453.60


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transfer-in

(3) Increased by combination

(4)other                                                  7,452,408.21                                      7,452,408.21

  3.Current decreased                     504,633.94      5,583,813.90    1,119,479.53    30,926,714.64    38,134,642.01

(1) Disposal or scrapping                 504,633.94      5,583,813.90    1,119,479.53    30,926,714.64    38,134,642.01

  4.Conversion of foreign currency
                                                         -2,282,266.27                      -520,100.45    -2,802,366.72
financial statement

  5.Ending balance                   1,602,421,880.72 3,417,914,795.56   32,089,458.95   621,027,712.46 5,673,453,847.69

II. Accumulated depreciation

  1.Opening balance                   420,143,043.64 1,785,173,380.76    22,602,310.15   291,068,729.12 2,518,987,463.67

  2.Current increased                  23,793,775.24    107,400,808.40     820,019.14     62,732,407.00   194,747,009.78

(1) Accrual                            23,793,775.24    100,477,297.54     820,019.14     62,732,407.00   187,823,498.92

(2)other                                                  6,923,510.86                                      6,923,510.86

  3.Current decreased                     245,078.59      4,165,979.55    1,063,359.70    23,477,108.96    28,951,526.80

(1) Disposal or scrapping                 245,078.59      4,165,979.55    1,063,359.70    23,477,108.96    28,951,526.80

  4.Conversion of foreign currency
                                                         -2,054,367.22                      -354,727.30    -2,409,094.52
financial statement

  5.Ending balance                    443,691,740.29 1,886,353,842.39    22,358,969.59   329,969,299.86 2,682,373,852.13

III. Depreciation reserves

  1.Opening balance                                      81,771,072.40      73,319.90      7,066,306.55    88,910,698.85

  2.Current increased

  3.Current decreased                                        15,136.91                      939,129.44       954,266.35

(1) Disposal or scrapping                                    15,136.91                      939,129.44       954,266.35

  4.Conversion of foreign currency
financial statement

  5.Ending balance                                       81,755,935.49      73,319.90      6,127,177.11    87,956,432.50

IV. Book value

  1.Ending Book value                1,158,730,140.43 1,449,805,017.68    9,657,169.46   284,931,235.49 2,903,123,563.06

  2.Opening Book value               1,164,451,545.89 1,464,417,607.00    7,605,651.45   233,876,666.03 2,870,351,470.37


(2) Temporarily idle fixed assets

Nil


(3) Fixed assets acquired by operating lease

                                                                                                               Unit: yuan


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                            Item                                                               Ending book value

House leasing                                                                                                                  86,345,142.86

Equipment leasing                                                                                                                121,983.36


(4) Fixed assets without property certification held

                                                                                                                                   Unit: yuan

                                                                                                   Reasons for without the property
                    Item                                        Book value
                                                                                                              certification

                                                                                              Still in process of relevant property
Plant and office building of WFCA                                             33,104,524.59
                                                                                              procedures


(5) Disposal of fixed assets

Nil

15. Construction in progress

                                                                                                                                   Unit: yuan

                    Item                                   Ending balance                                   Opening balance

Construction in progress                                                     234,758,990.27                                   243,795,493.04

Total                                                                        234,758,990.27                                   243,795,493.04


(1) Construction in progress

                                                                                                                                   Unit: yuan

                                             Ending balance                                            Opening balance

             Item                                  Depreciation                                            Depreciation
                             Book balance                           Book value         Book balance                           Book value
                                                     reserves                                                reserves

Technical transformation
                                93,114,671.56                       93,114,671.56      123,249,079.40                         123,249,079.40
of parent company

Technical transformation
                                    8,992,786.52                     8,992,786.52       20,720,304.97                          20,720,304.97
of WFAM

Technical transformation
                                18,233,618.60                       18,233,618.60       27,031,547.25                          27,031,547.25
of WFLD

Other item                     114,417,913.59                      114,417,913.59       72,794,561.42                          72,794,561.42

Total                          234,758,990.27                      234,758,990.27      243,795,493.04                         243,795,493.04


(2) Changes of major projects under construction

                                                                                                                                   Unit: yuan




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                                                                                                                               inclu
                                                                                                                       Acc ding
                                                                                                          Prop
                                                                                                                       umu       :     Inter
                                                                                                          ortio
                                                                                                                       lated inter est
                                                                                                          n of
                                                                                                                       amo est capit
                                                                                                          proj
                                                         Fixed assets        Other                                     unt capit aliza
              Bud                       Current                                                           ect Prog                             Source
   Item              Opening balance                   transfer-in in the decreased in   Ending balance                 of alize tion
               get                      increased                                                         inve ress                            offunds
                                                               Period     the Period                                   inter     d     rate
                                                                                                          stme
                                                                                                                        est amo         of
                                                                                                          nt in
                                                                                                                       capit unt        the
                                                                                                          budg
                                                                                                                       aliza    of     year
                                                                                                           et
                                                                                                                       tion the
                                                                                                                               year

Technical
transforma
tion of               123,249,079.40   83,147,307.92 112,057,786.48       1,223,929.28    93,114,671.56                                        Other
parent
company

Technical
transforma
                       20,720,304.97    6,904,582.30      18,621,931.16      10,169.59     8,992,786.52                                        Other
tion of
WFAM

Technical
transforma
                       27,031,547.25   29,654,362.21      31,964,004.70   6,488,286.16    18,233,618.60                                        Other
tion of
WFLD

Total                 171,000,931.62 119,706,252.43 162,643,722.34        7,722,385.03 120,341,076.68      --     --                             --


   (3) The provision for impairment of construction projects

   Nil


   (4) Engineering materials

   Nil

   16. Right-of-use assets
                                                                                                                                      Unit: yuan

                     Item                           Building                Mechanical equipment                       Total

    I. Original book value:

         1.Opening balance                                8,677,179.35                   31,600,502.47                         40,277,681.82

         2.Current increased



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  3.Current decreased                                                          7,452,408.21                     7,452,408.21

  4.Conversion of foreign
                                                                              -1,179,252.83                    -1,179,252.83
currency financial statement

  5.Ending balance                                8,677,179.35                22,968,841.43                    31,646,020.78

II. Accumulated depreciation

  1.Opening balance                                                           16,449,611.12                    16,449,611.12

  2.Current increased                             1,133,657.75                 2,112,994.32                     3,246,652.07

  3.Current decreased                                                          6,923,510.86                     6,923,510.86

  4.Conversion of foreign
                                                                                -684,765.01                      -684,765.01
currency financial statement

  5.Ending balance                                1,133,657.75                10,954,329.57                    12,087,987.32

III. Depreciation reserves

  1.Opening balance

  2.Current increased

  3.Current decreased

  4.Ending balance

IV. Book value

     1.Ending Book value                          7,543,521.60                12,014,511.86                    19,558,033.46

     2.Opening Book value                         8,677,179.35                15,150,891.35                    23,828,070.70


17. Intangible assets

(1) Intangible assets

                                                                                                                   Unit: yuan

                                                          Non-patent      Computer         Trademark and
            Item               Land use right   Patent                                                           Total
                                                          technology      software        trademark license
I. Original book value
     1.Opening balance         381,012,520.44            185,079,328.12   97,684,862.76      41,597,126.47    705,373,837.79
     2.Current increased                                                   2,275,463.04          18,202.07      2,293,665.11
       (1) Purchase                                                        2,275,463.04          18,202.07      2,293,665.11
       (2) Internal R&D
       (3) Increased by
combination
     3.Current decreased                                                    237,179.48                           237,179.48
       (1) Disposal                                                         237,179.48                           237,179.48
     4.Conversion of
foreign currency financial                                -7,469,392.37     -112,873.85                        -7,582,266.22
statement



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      5.Ending balance         381,012,520.44             177,609,935.75     99,610,272.47      41,615,328.54     699,848,057.20
II. Accumulated
amortization
      1.Opening balance         95,252,939.06              55,078,092.67     74,273,958.37       9,709,000.00     234,313,990.10
      2.Current increased        4,186,726.96               7,681,954.47     10,184,471.39                         22,053,152.82
        (1) Accrual              4,186,726.96               7,681,954.47     10,184,471.39                         22,053,152.82
      3.Current decreased                                                        237,179.48                           237,179.48
        (1) Disposal                                                             237,179.48                           237,179.48
      4.Conversion of
foreign currency financial                                 -2,359,382.62         -72,695.77                        -2,432,078.39
statement
      5.Ending balance          99,439,666.02              60,400,664.52     84,148,554.51       9,709,000.00     253,697,885.05
III. Depreciation reserves
      1.Opening balance                                                                         16,646,900.00      16,646,900.00
      2.Current increased
        (1) Accrual
      3.Current decreased
        (1) Disposal
      4.Ending balance                                                                          16,646,900.00      16,646,900.00
IV. Book value
      1.Ending Book value      281,572,854.42             117,209,271.23     15,461,717.96      15,259,428.54     429,503,272.15
      2.Opening Book value     285,759,581.38             130,001,235.45     23,410,904.39      15,241,226.47     454,412,947.69


(2) Land use right without property certification held

Nil

18. Goodwill

(1) Original book value of goodwill
                                                                                                                        Unit: yuan

                                                                                                 Current
 The invested entity or                                      Current increased
                                                                                                decreased
      matters forming        Opening balance                                                                    Ending balance
                                                  Formed by business   Translation of foreign
         goodwill                                                                               Disposal
                                                     combination       currency statements

Merged with WFTT                   1,784,086.79                                                                      1,784,086.79

Merged with Borit               256,016,609.53                                -11,752,140.17                       244,264,469.36

            Total               257,800,696.32                                -11,752,140.17                       246,048,556.15


(2) Goodwill depreciation reserves

Nil

Other explanation


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(1) Goodwill formed by the merger of WFTT:

In 2010, the Company controlling and combine WFTT by increasing the capital, the goodwill is the number that combination cost
greater than the fair value of identical net assets of WFTT.
(2) Goodwill formed by the merger of Borit:

In 2020, the company acquired 100.00% equity of Borit in the form of cash purchase, the goodwill was the part that the cost of the
merger was greater than the fair value share of the identifiable net assets of Borit.

19. Long-term deferred expenses

                                                                                                                                Unit: yuan

                                                                          Amortized in the
         Item              Opening balance      Current increased                                 Other decrease       Ending balance
                                                                                 Period
Remodeling costs etc.           15,062,171.09           10,295,243.72            10,464,905.27                              14,892,509.54
Total                           15,062,171.09           10,295,243.72            10,464,905.27                              14,892,509.54


20. Deferred income tax assets/Deferred income tax liabilities

(1) Deferred income tax assets that are not offset
                                                                                                                                Unit: yuan

                                                      Ending balance                                     Opening balance

              Item                 Deductible temporary        Deferred income tax        Deductible temporary      Deferred income tax
                                         difference                     assets                   difference                assets

Bad debt provision                          95,177,650.74                14,452,551.92            104,259,030.38            15,779,756.63

Inventory depreciation reserve            207,880,608.17                 32,123,385.21            225,684,043.14            35,799,261.60

Depreciation reserves of fixed
                                            54,443,333.50                 8,261,275.80              55,397,599.68            8,523,566.97
assets

Depreciation reserves of
                                            16,646,900.00                 2,497,035.00              16,646,900.00            2,497,035.00
intangible assets

Other equity instrument
                                                                                                    10,000,000.00            1,500,000.00
investment

Deferred income                           307,737,182.97                 46,481,102.81            323,924,836.18            48,935,725.44

Internal un-realized profit                 47,197,359.16                 7,732,060.38              19,551,845.38            3,457,610.51

Payable salary, accrued
                                          945,354,285.34                145,632,537.88            981,477,549.10           151,813,641.23
expenses etc.

Depreciation assets,
                                            89,867,140.13                14,608,530.39              89,867,140.23           14,608,530.41
amortization difference

Deductible loss of subsidiary                2,265,501.37                   566,375.34               9,703,095.17            2,425,773.79

Equity incentive                            43,885,502.56                 6,797,880.46               6,330,515.63             987,908.92

Investment income                         831,855,487.43                124,778,323.13

Total                                   2,642,310,951.37                403,931,058.32           1,842,842,554.89          286,328,810.50


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(2) Deferred income tax liabilities that are not offset

                                                                                                                                     Unit: yuan

                                                    Ending balance                                        Opening balance

               Item                   Taxable temporary Deferred income tax                Taxable temporary          Deferred income tax
                                          differences              liabilities                differences                   liabilities

The difference between the fair
value and taxation basis of WFTT
                                           10,901,079.60              1,635,161.92                 11,271,189.48                  1,690,678.40
assets in a merger not under the
same control

The difference between the fair
value and taxation basis of IRD
                                           78,290,603.67            17,223,932.80                  86,905,585.08                19,119,228.72
assets in a merger not under the
same control

The difference between the fair
value and taxation basis of Borit
                                           35,550,816.12              8,887,704.01                 39,376,104.10                  9,844,026.00
assets in a merger not under the
same control

Change of fair value of
                                          280,615,151.37            42,102,924.76                 366,808,362.19                55,023,506.38
transaction financial asset

Accelerated depreciation of fixed
                                          189,828,338.16            29,327,980.28                 211,571,729.76                32,911,802.62
assets

Total                                     595,185,988.92            99,177,703.77                 715,932,970.61               118,589,242.12


(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

                                                                                                                                     Unit: yuan

                                                                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                -71,430,905.04              332,500,153.28                -87,935,309.00            198,393,501.50

Deferred income tax liabilities           -71,430,905.04                27,746,798.73               -87,935,309.00              30,653,933.12


(4) Details of unrecognized deferred income tax assets

                                                                                                                                     Unit: yuan

                      Item                                   Ending balance                                     Opening balance

Bad debt provision                                                                1,025,997.60                                    1,710,712.39

Inventory depreciation reserve                                                   24,245,766.89                                  21,586,279.12




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Loss from subsidiary                                                   207,901,419.35                               193,713,240.35

Depreciation reserves of fixed assets                                    33,513,099.00                               33,513,099.17

Other equity instrument investment                                       46,600,000.00                               46,600,000.00

Equity incentive                                                            1,199,728.57                                  154,321.87

Total                                                                  314,486,011.41                               297,277,652.90


(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

                                                                                                                           Unit: yuan

          Year                  Ending amount                 Opening amount                              Note

2021                                                                 12,343,844.69 Subsidiaries have operating losses

2022                                                                  3,781,066.93 Subsidiaries have operating losses

2023                                       384,510.71                 1,171,973.53 Subsidiaries have operating losses

2024                                     18,520,699.71               18,520,699.71 Subsidiaries have operating losses

2025                                     12,151,503.80               12,151,503.80 Subsidiaries have operating losses

2026                                      7,558,212.19                               Subsidiaries have operating losses

No expiration period                    169,286,492.94              145,744,151.69 Overseas subsidiaries have operating losses

Total                                   207,901,419.35              193,713,240.35                         --


21. Other non-current assets

                                                                                                                           Unit: yuan

                                                Ending balance                                    Opening balance

              Item                               Provision for                                      Provision for
                               Book balance                       Book value       Book balance                       Book value
                                                 impairment                                          impairment

Engineering equipment paid
                               237,495,903.07                    237,495,903.07 195,259,441.73                      195,259,441.73
in advance

Total                          237,495,903.07                    237,495,903.07 195,259,441.73                      195,259,441.73


22. Short-term borrowings

(1) Category of short-term borrowings
                                                                                                                           Unit: yuan

                     Item                                  Ending balance                             Opening balance

Credit loan                                                           1,208,716,737.11                              301,958,184.49

Accrued interest                                                            1,092,680.13                                  280,415.56

Total                                                                 1,209,809,417.24                              302,238,600.05




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(2) Overdue short-term loans without payment

Nil

23. Note payable

                                                                                                                 Unit: yuan

                   Category                             Ending balance                      Opening balance

Bank acceptance bill                                              1,849,948,849.32                     2,462,592,372.82

Total                                                             1,849,948,849.32                     2,462,592,372.82


Notes expired at year-end without paid was 0.00 Yuan.

24. Account payable


(1) Account payable

                                                                                                                 Unit: yuan

                     Item                               Ending balance                      Opening balance

Within 1 year                                                     3,845,035,532.59                     3,986,993,867.21

1-2 years                                                            45,870,705.92                        87,605,077.14

2-3 years                                                            55,244,655.89                        13,824,720.43

Over three years                                                     16,874,490.99                        12,560,575.61

Total                                                             3,963,025,385.39                     4,100,984,240.39


(2) Important account payable with account age over one year

Nil

25. Accounts received in advance


(1) Accounts received in advance

                                                                                                                 Unit: yuan

                     Item                               Ending balance                      Opening balance

Within 1 year                                                            439,949.43                           4,071,236.87

Total                                                                    439,949.43                           4,071,236.87


(2) Important accounts received in advance with account age over one year

Nil



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26. Contractual liability

                                                                                                                             Unit: yuan

                      Item                                  Ending balance                              Opening balance

Within 1 year                                                               50,586,326.41                             77,554,320.04

1-2 years                                                                    4,958,818.19                                 2,763,605.96

2-3 years                                                                     654,380.16                                   255,602.59

Over three years                                                             1,288,800.11                                 1,143,858.66

Total                                                                       57,488,324.87                             81,717,387.25


27. Wage payable


(1) Wage payable

                                                                                                                             Unit: yuan

                         Item                         Opening balance     Current increased   Current decreased    Ending balance

I. Short-term compensation                              184,226,322.31       547,486,803.56       640,558,941.65      91,154,184.22

II. Post-employment welfare- defined contribution
                                                         49,931,097.42        70,112,252.05        79,143,798.22      40,899,551.25
plans

III. Dismissed welfare                                    1,645,271.32           136,483.00           933,423.78           848,330.54

IV. Other welfare due within one year                    84,150,000.00                             46,534,462.17      37,615,537.83

V. Other short-term welfare-Housing subsidies,
                                                         12,469,120.77           354,300.00         2,304,217.36      10,519,203.41
employee benefits and welfare funds

Total                                                   332,421,811.82       618,089,838.61       769,474,843.18     181,036,807.25


(2) Short-term compensation

                                                                                                                             Unit: yuan

                     Item                      Opening balance       Current increased      Current decreased      Ending balance

1. Wages,bonuses,allowancesand subsidies            155,323,190.62       425,824,158.63         514,708,788.22        66,438,561.03

2. Welfare for workers and staff                           112.35         41,873,533.62          41,510,711.32             362,934.65

3. Social insurance                                  17,498,085.68        34,013,222.72          38,280,621.09        13,230,687.31

        Including: Medical insurance                 14,251,442.15        28,054,429.56          31,566,790.06        10,739,081.65

               Work injury insurance                  1,661,670.58         3,092,246.47           3,482,783.69            1,271,133.36

               Maternity insurance                    1,584,972.95         2,866,546.69           3,231,047.34            1,220,472.30

4. Housing accumulation fund                          1,016,187.00        36,481,576.00          36,622,479.00             875,284.00

5. Labor union expenditure and                       10,367,089.56         9,295,214.13           9,436,342.02        10,225,961.67



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personnel education expense

6.Other short-term salary-social security               21,657.10               -901.54                      0.00              20,755.56

Total                                              184,226,322.31       547,486,803.56          640,558,941.65          91,154,184.22


(3) Defined contribution plans

                                                                                                                               Unit: yuan

                   Item                     Opening balance        Current increased       Current decreased        Ending balance

1. Basic endowment insurance                     29,844,835.64          54,041,308.77           63,332,460.16           20,553,684.25

2. Unemployment insurance                          912,529.16            1,715,666.38               1,952,095.66             676,099.88

3. Enterprise annuity                            19,173,732.62          14,355,276.90           13,859,242.40           19,669,767.12

Total                                            49,931,097.42          70,112,252.05           79,143,798.22           40,899,551.25

28. Taxes payable

                                                                                                                               Unit: yuan

                            Item                                      Ending balance                         Opening balance

Value-added tax                                                                   18,395,921.72                         28,744,351.90

Corporation income tax                                                           122,381,527.45                         21,458,320.79

Individual income tax                                                                  564,344.62                           7,184,934.79

City maintaining & construction tax                                                1,321,182.66                             1,983,996.80

Educational surtax                                                                     943,701.91                           1,417,140.56

Other (including stamp tax and local funds)                                        6,240,223.11                             6,704,945.45

Total                                                                            149,846,901.47                         67,493,690.29

29. Other account payable

                                                                                                                               Unit: yuan

                     Item                                     Ending balance                              Opening balance

Interest payable                                                                49,246.71                                       4,862.22

Dividend payable                                                          155,601,810.00

Other accounts payable                                                    362,804,621.00                               361,551,395.20

Total                                                                     518,455,677.71                               361,556,257.42

(1) Interest payable

                                                                                                                               Unit: yuan

                     Item                                     Ending balance                              Opening balance

Other                                                                           49,246.71                                       4,862.22

Total                                                                           49,246.71                                       4,862.22

Major overdue interest: nil

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(2) Dividend payable

                                                                                                                             Unit: yuan

                   Item                                   Ending balance                             Opening balance

Common stock dividend                                                   155,601,810.00

Total                                                                   155,601,810.00

Other explanation, including important dividends payable that have not been paid for more than 1 year, and the reasons for
non-payment should be disclosed: Nil


(3) Other account payable

1) Classification of other accounts payable according to nature of account

                                                                                                                             Unit: yuan

                   Item                                   Ending balance                             Opening balance

Deposit and margin                                                       21,468,703.26                               12,759,592.29

Social insurance and reserves funds that
                                                                           8,707,632.99                                8,853,543.93
withholding

Intercourse funds of unit                                                25,512,145.98                               30,982,145.98

Restricted stock repurchase obligations                                 302,479,200.00                              302,479,200.00

Other                                                                      4,636,938.77                                6,476,913.00

Total                                                                   362,804,621.00                              361,551,395.20


2) Significant other payable with over one year age

                                                                                                                             Unit: yuan

                   Item                                   Ending balance                  Reasons for non-repayment or carry-over

Nanjing Jidian Industrial Group Co., Ltd.                                  4,500,000.00 Intercourse funds

Total                                                                      4,500,000.00                      --


30. Non-current liabilities due within one year

                                                                                                                             Unit: yuan

                   Item                                   Ending balance                             Opening balance

Long-term borrowings due within one year                                 21,573,598.64                               33,271,589.84

Lease payments due within one year                                         1,474,310.04                                3,615,985.51

Interest payable                                                             19,555.56                                   26,666.67

Total                                                                    23,067,464.24                               36,914,242.02




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31. Other current liabilities

                                                                                                                   Unit: yuan

                    Item                               Ending balance                         Opening balance

Rebate payable                                                      267,859,858.47                         213,477,951.00

Pending sales tax                                                       5,868,301.94                            9,393,136.33

Total                                                               273,728,160.41                         222,871,087.33

32. Long-term loans

(1) Category of Long-term loans

                                                                                                                   Unit: yuan

                    Item                               Ending balance                         Opening balance

Guaranteed loan                                                         2,921,841.19                            3,050,640.97

Total                                                                   2,921,841.19                            3,050,640.97

Explanation of long-term loan classification: nil

33. Lease liability

                                                                                                                   Unit: yuan

                    Item                               Ending balance                         Opening balance

Lease liability                                                       16,761,771.80                          17,811,603.05

                    Total                                             16,761,771.80                          17,811,603.05


34. Long-term account payable

                                                                                                                   Unit: yuan

                    Item                               Ending balance                         Opening balance

Long-term account payable                                             15,000,000.00                          15,351,883.00

Special accounts payable                                              18,265,082.11                          18,265,082.11

Total                                                                 33,265,082.11                          33,616,965.11


(1) Long-term account payable listed by nature
                                                                                                                   Unit: yuan

                                           Item                                        Ending balance     Opening balance

Hi-tech Branch of Nanjing Finance Bureau (note ①) Financial support funds (2006)          1,250,000.00         1,250,000.00

Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2007)          1,230,000.00         1,230,000.00

Loan transferred from treasury bond (note ③)                                                                     339,090.00

Hi-tech Branch of Nanjing Finance Bureau (note ④) Financial support funds (2008)          2,750,000.00         2,750,000.00




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Hi-tech Branch of Nanjing Finance Bureau (note ⑤) Financial support funds (2009)                    1,030,000.00          1,030,000.00

Hi-tech Branch of Nanjing Finance Bureau (note ⑥) Financial support funds (2010)                      960,000.00              960,000.00

Hi-tech Branch of Nanjing Finance Bureau (note ⑦) Financial support funds (2011)                    5,040,000.00          5,040,000.00

Hi-tech Branch of Nanjing Finance Bureau (note ⑧) Financial support funds (2013)                    2,740,000.00          2,740,000.00

Total                                                                                               15,000,000.00         15,339,090.00

Other explanation:

Note ①: To encourage WFJN 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 ②: To encourage WFJN 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 ③: Loan transferred from treasury bond: WFJN received 1.87 million Yuan of special funds from budget of the central
government, and 3.73 million Yuan of special funds from budget of the local government in 2007. The non-operating income
transferred in was 1.87 million Yuan in 2011 which was confirmed not to return, the Company paid back special funds of 3.73
million Yuan to the local government in 11 years since 2012, the Company paid the principal of 339,090.00 Yuan the year.
Note ④: To encourage WFJN 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 ⑤: To encourage WFJN 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 ⑥: To encourage WFJN 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 ⑦: To encourage WFJN 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 ⑧: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from 18 December 2013 to 18 December
2028. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.


(2) Special accounts payable

                                                                                                                                 Unit: yuan

          Item              Opening balance       Current increased    Current decreased      Ending balance        Cause of formation

Removal compensation
                                 18,265,082.11                                                    18,265,082.11
of WFJN

Total                            18,265,082.11                                                    18,265,082.11             --

Other explanation:



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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 WFJN 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 WFJN and House Expropriation Management Office of Xuanwu District, Nanjing City, 19.7067 million yuan in total are
compensate, including operation losses from lessee 1.4416 million yuan in total. The above compensation was received in last period
and is making up for the losses from lessee, and the above lands and property have not been collected up to 30 June 2021.

35. Long-term wages payable


(1) Long-term wages payable

                                                                                                                                     Unit: yuan

                      Item                                  Ending balance                                   Opening balance

II. Dismiss welfare                                                             5,734,948.91                                   5,734,948.91

III. Other long-term welfare                                                  176,245,345.03                                 176,245,345.03

Total                                                                         181,980,293.94                                 181,980,293.94


(2) Changes in defined benefit plans

Nil

36. Deferred income

                                                                                                                                     Unit: yuan

        Item                 Opening balance     Current increased      Current decreased           Ending balance     Cause of formation

Government grand                328,204,476.73         1,646,910.09            18,669,032.57          311,182,354.25

Total                           328,204,476.73         1,646,910.09            18,669,032.57          311,182,354.25            --

Item with government grants involved:

                                                                                                                                     Unit: yuan

                                                                     Amo
                                                                      unt
                                                                                             Cost
                                                                     reck
                                                                                             redu
                                                                     oned      Amount                Othe
                                                                                             ction                               Assets
                                                     New grants in    in     reckoned into            r
               Item                Opening balance                                             in           Ending balance    related/Incom
                                                      the Period     non- other income               chan
                                                                                              the                               e related
                                                                     oper in the period              ges
                                                                                             perio
                                                                     ation
                                                                                               d
                                                                     reve
                                                                      nue

Industrialization project for                                                                                                 Assets
                                      1,442,000.56                              721,000.30                       721,000.26
injection VE pump system                                                                                                      related/Incom


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with electronically controlled                                                               e related
high pressure for
less-emission diesel used

Appropriation on reforming of
production line technology
and R&D ability of common          7,100,000.00                               7,100,000.00 Assets related
rail system for diesel by
distributive high-voltage

Fund of industry upgrade                                                                     Income
                                    642,169.73       642,169.73
(2012)                                                                                       related

Fund of industry upgrade                                                                     Income
                                  60,520,000.00                              60,520,000.00
(2013)                                                                                       related

Appropriation on central basic
                                    714,285.73       357,142.86                357,142.87 Assets related
construction investment

R&D and industrialization of
the high-pressure variable
pump of the common rail            5,327,618.88      771,547.64               4,556,071.24 Assets related
system of diesel engine for
automobile

Research institute of motor
vehicle exhaust aftertreatment     1,213,727.21      282,533.52                931,193.69 Assets related
technology

Fund of industry upgrade                                                                     Income
                                  36,831,000.00                              36,831,000.00
(2014)                                                                                       related

New-built assets
compensation after the           104,085,274.40    10,189,824.14             93,895,450.26 Assets related
removal of parent company

Fund of industry upgrade                                                                     Income
                                  40,000,000.00                              40,000,000.00
(2016)                                                                                       related

Guiding capital for the
technical reform from State
                                   6,595,319.83      772,823.43               5,822,496.40 Assets related
Hi-Tech Technical
Commission

Implementation of the
variable cross-section             7,362,788.75      740,000.02               6,622,788.73 Assets related
turbocharger for diesel engine

Demonstration project for
                                    849,099.60       100,516.63                748,582.97 Assets related
intelligent manufacturing

The 2nd batch of provincial        5,000,000.00                               5,000,000.00 Assets related



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special funds for industry
transformation of industrial
and information in 2019

Municipal technological
                                   4,770,000.00                            256,056.12                     4,513,943.88 Assets related
reform fund allocation in 2020

Strategic cooperation
agreement funding for key
enterprise of smart                4,060,000.00                                                           4,060,000.00 Assets related
manufacturing in high-tech
zone

                                                                                                                         Assets
Other                             41,691,192.04    1,646,910.09          3,835,418.18                    39,502,683.95 related/Incom
                                                                                                                         e related

Total                            328,204,476.73    1,646,910.09         18,669,032.57                   311,182,354.25

Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in
September 2009, WFJN signed “Project Contract of Technology Outcome Transferring Special Capital in Jiangsu Province” with
Nanjing Technical Bureau, according to which WFJN received appropriation 6.35 million Yuan in 2009, 4.775 million Yuan received
in 2010 and 0.875 million Yuan received in 2011. According to the contract, the attendance date of this project was: from October
2009 to March 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 4,789,997.04 Yuan with income related was reckoned into current operation revenue directly; the 7,210,002.96
Yuan with assets related was amortized during the predicted service period of the assets, and 721,000.30 Yuan amortized in the
Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use
and production line technological transformation project: according to XCJ No. [2010] 59, the Company has received special funds
of 7.1 million Yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company’s research and
development ability of distributive high-pressure common rail system for diesel engine use and production line technological
transformation project; this appropriation belongs to government subsidies related to assets, and will be amortized according to the
depreciation process of the underlying assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and Document Xi Xin
Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for industry upgrading this year. Current
write-off: 642,169.73 Yuan.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi Xin Guan Jing Fa
[2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the Company received funds of 60.52
million Yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the document Xi Caijian
[2012] No.43, the Company received appropriation of 5 million Yuan for investment of capital construction from the central
government in 2012. The 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 current period is 357,142.86 Yuan.
(6) R&D and industrialization of the high-pressure variable pump of the common rail system of diesel engine for automobile: the
Company received appropriated for the project in 2013 with 8.05 million Yuan in line with documents of Xi Ke Ji [2013] No.186, Xi



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                                                                      无锡威孚高科技集团股份有限公司 2021 年半年度报告全文


Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong
Mao [2014] No.58, Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. Received 3 million Yuan in 2014 and 0.45 million
Yuan in 2015; and belongs to government grant with assets concerned, and shall be amortized according to the depreciation process,
amount of 771,547.64 Yuan amortizes in the period.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary WFLD has applied for equipment
purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for the vehicle
exhaust after-treatment technology research institute project. This declaration has been approved by Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau in 2012, and the company has received appropriation of 2.4 million
Yuan in 2012, and received appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related to
assets and will be amortized according to the depreciation process, amount of 282,533.52 Yuan amortizes in the period.
(8) 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.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation received by the Company,
and will be amortized according to the depreciation of new-built assets, amount of 10,189,824.14 Yuan amortizes in the period.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and Xi Xin Fa [2016]
No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in 2016.

(11) Guilding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi Jing
Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuan for the guiding capital of technical
reform (1st batch) from Wuxi for year of 2016, and belongs to government grant with assets concerned, and shall be amortized
according to the depreciation process, amount of 772,823.43 Yuan amortizes in the period.
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]
NO.623 and “Strong Industrial Base Project Contract for year of 2016”, subsidiary WFTT received a specific subsidy of 16.97
million Yuan (760,000 Yuan received in the period), the fund supporting strong industrial base project (made-in-China 2025) of
central industrial transformation and upgrading 2016 from Ministry of Industry and Information Technology; and belongs to
government grant with assets concerned, and shall be amortized according to the depreciation process, amount of 740,000.02 Yuan
amortize in the period.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent Manufacturing
Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 Yuan was granted by relevant
government authority in Huishan district to our subsidiary WFLD in 2017 to be utilized for transformation and upgrade of WFLD’s
intelligent manufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the
depreciation progress of the assets. Amortization for the period amounts to 100,516.63 Yuan.
(14) The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019: according to XCGM
[2019] No. 121, the Company received a special fund of 5 million Yuan in 2020, this subsidy was related to the"Weifu
High-Technology New Factory Internet Construction" projects, and belonged to government subsidies related to assets.

(15) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16, the Company received 4.77
million Yuan of municipal technological transformation fund project allocation in 2020, which was related to key technological
transformation projects and belonged to government subsidies related to assets. And amortized based on the depreciation progress of
the assets. Amortization for the period amounts to 256,056.12 Yuan.
(16) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF
[2020] No. 61, the Company received a related grant of 4.06 million Yuan in 2020, this subsidy was related to the intelligent
transformation project and belonged to the government subsidies related to assets.




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37. Share capital

                                                                                                                                    Unit: yuan

                                                                  Changeduringtheperiod (+, -)

                                                                           Shares
                   Opening balance      New shares                       transferred                                         Ending balance
                                                       Bonus share                                Other        Subtotal
                                          issued                        from capital
                                                                           reserve

Total shares       1,008,950,570.00                                                                                         1,008,950,570.00


38. Capital reserve

                                                                                                                                    Unit: yuan

           Item                   Opening balance           Current increased              Current decreased              Ending balance

Capital premium (Share
                                      3,242,767,917.78                                                                      3,242,767,917.78
capital premium)

Other Capital reserve                   51,474,450.50                37,351,066.35                                             88,825,516.85

Total                                 3,294,242,368.28               37,351,066.35                                          3,331,593,434.63

Other explanation, including changes in the period and reasons for changes;

Other capital reserves has 37,351,066.35 yuan increased in the current period, which is the net amount after deducting the 1,174,655.42
yuan amount attributable to shareholders from share-based payment fee 38,525,721.77 yuan, settled by equity.

39. Treasury stock

                                                                                                                                    Unit: yuan

               Item                       Opening balance         Current increased              Current decreased        Ending balance

Stock repurchases                                  1,148,777.74                                                                 1,148,777.74

Repurchase obligation of
                                              302,479,200.00                                                                  302,479,200.00
restricted stock incentive plan

Total                                         303,627,977.74                                                                  303,627,977.74

Other explanations, including changes in the current period and explanations of the reasons for the changes:

(1) Stock repurchases: mainly refers to in 2020 the repurchase of 19,596,277.00 shares by way of centralized competitive bidding for
the implementation of restricted stock incentive plan and the 19,540,000.00 shares awarded to incentive object for the
implementation of restricted stock incentive plan.
(2) Repurchase obligation of restricted stock incentive plan: mainly refers to in 2020 the repurchase obligation recognized in
accordance with the subscription paid by the incentive object for the implementation of restricted stock incentive plan.

40. Other comprehensive income



                                                                                                                                    Unit: yuan



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                                                                               Current period
                                                                               Less:
                                                                   Less:
                                                                              written
                                                                  written
                                                                              in other
                                                                  in other
                                                                              compreh
                                                                  compreh
                                                                               ensive
                                                                   ensive
                                                                              income
                                                                  income
                                                                                 in
                                                                     in                                                Belong to
                                                                              previous    Less:
                                Opening       Account before previous                                                  minority       Ending
            Item                                                               period    income    Belong to parent
                                balance       income tax in the    period                                              sharehold     balance
                                                                                and        tax     company after tax
                                                    year            and                                                ers after
                                                                              carried    expense
                                                                  carried                                                 tax
                                                                              forward
                                                                  forward
                                                                                 to
                                                                  to gains
                                                                              retained
                                                                    and
                                                                              earnings
                                                                  losses in
                                                                                 in
                                                                  current
                                                                              current
                                                                   period
                                                                               period
II. Other comprehensive
income items which will
be reclassified              13,916,619.47 -18,712,800.55                                           -18,712,800.55                 -4,796,181.08
subsequently to profit or
loss
Conversion difference of
foreign currency financial 13,916,619.47 -18,712,800.55                                             -18,712,800.55                 -4,796,181.08
statement
Total other comprehensive
                             13,916,619.47 -18,712,800.55                                           -18,712,800.55                 -4,796,181.08
income

Other explanation, including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flow
hedge profit/loss: nil

41. Reasonable reserve

                                                                                                                                       Unit: yuan

            Item                Opening balance             Current increased             Current decreased               Ending balance

Safety production costs                   2,333,490.03               12,481,928.66                 12,287,801.67                   2,527,617.02

Total                                     2,333,490.03               12,481,928.66                 12,287,801.67                   2,527,617.02

Other explanation, including changes and reasons for changes:
(1) Instructions for the withdrawing of special reserves (safe production cost): According to the CQ [2012] No. 16 - Administrative
Measures on the Withdrawing and Use of Enterprise Safety Production Expenses jointly issued by the Ministry of Finance and the
State Administration of Work Safety, in the current period, the Company adopted excess retreat method for quarterly withdrawal by
taking the actual operating income of the previous period as the withdrawing basis.

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(2) 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.


42. Surplus reserve

                                                                                                                               Unit: yuan

              Item                    Opening balance           Current increased       Current decreased           Ending balance

Statutory surplus reserves                 510,100,496.00                                                               510,100,496.00

Total                                      510,100,496.00                                                               510,100,496.00


43. Retained profit

                                                                                                                               Unit: yuan

                                    Item                                            Current period                  Last period

Retained profits at the end of last period before adjustment                           13,756,102,424.62             12,076,443,635.56

Retained profits at the beginning of the period after adjustment                       13,756,102,424.62             12,076,443,635.56

Add: The net profits belong to owners of patent company of this period                  1,645,389,487.32              2,772,769,377.96

Less: Common dividend payable                                                           1,513,341,439.50              1,093,241,270.00

     Withdraw employee rewards and welfare funds                                                                           2,525,946.49

Add: Net effect of disposal other equity instrument investment                              2,236,332.86                   2,656,627.59

Retained profit at period-end                                                          13,890,386,805.30             13,756,102,424.62

Details about adjusting the retained profits at the beginning of the period:

1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.

2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 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

44. Operating income and cost

                                                                                                                               Unit: yuan

                                               Current period                                         Last Period
           Item
                                     Income                        Cost                    Income                       Cost

Main operating                      8,767,778,890.21            7,264,238,382.73          6,352,974,489.95            5,256,052,615.30

Other business                        269,912,866.03               233,678,774.34           241,429,134.61              157,916,759.23

Total                               9,037,691,756.24            7,497,917,157.07          6,594,403,624.56            5,413,969,374.53

Information on the top five items of revenue recognized during the reporting period:
                                                                                                                               Unit: yuan



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                     Serial                                  Name                                    Income amount

                       1                   RBCD                                                                2,250,967,590.73

                       2                   Customer 1                                                               768,044,987.22

                       3                   Robert Bosch Company                                                     649,466,336.55

                       4                   Customer 2                                                               515,466,318.66

                       5                   Customer 3                                                               360,181,652.33


45. Operating tax and extras

                                                                                                                         Unit: yuan

                     Item                                Current period                               Last Period

City maintaining & construction tax                                       14,341,221.75                              11,315,610.47

Educational surtax                                                        10,225,750.57                               8,082,578.87

Property tax                                                               8,796,684.97                               8,136,007.34

Land use tax                                                               2,254,956.27                               2,258,583.38

Vehicle use tax                                                                4,723.44                                  17,455.52

Stamp duty                                                                 2,318,539.73                               2,074,390.19

Other taxes                                                                 267,617.59                                   76,923.38

Total                                                                     38,209,494.32                              31,961,549.15


46. Sales expenses

                                                                                                                         Unit: yuan

                               Item                                         Current period                 Last Period

Salary and fringe benefit                                                           26,304,864.83                    25,826,320.40

Consumption of office materials and business travel charge                            4,474,074.11                    3,267,626.29

Warehouse charge                                                                      3,451,305.60                    7,320,422.39

Three guarantees and quality cost                                                   41,751,346.64                    65,575,346.96

Business entertainment fee                                                          12,819,753.95                     8,669,963.79

Other                                                                               22,392,270.43                    27,734,491.48

Total                                                                              111,193,615.56                   138,394,171.31


47. Administration expenses

                                                                                                                         Unit: yuan

                              Item                                        Current period                   Last Period

Salary and fringe benefit                                                          150,875,422.64                   125,724,396.50




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Depreciation charger and long-term assets amortization                            35,267,896.09             30,914,703.59

Consumption of office materials and business travel charge                         7,618,286.05                 5,274,784.55

Incentive fund                                                                                              45,360,000.00

Share-based payment                                                               24,256,881.94

Other                                                                             48,207,891.60            129,710,776.64

Total                                                                            266,226,378.32            336,984,661.28


48. R&D expenses

                                                                                                                    Unit: yuan

                        Item                                 Current period                       Last Period

Technological development expenses                                     249,583,255.99                      211,531,953.72

Total                                                                  249,583,255.99                      211,531,953.72


49. Financial expenses

                                                                                                                    Unit: yuan

                        Item                                 Current period                       Last Period

Interest expenses                                                       14,244,003.27                           5,800,553.09

Note discount interest expenses                                         13,128,344.93                           5,393,256.06

Less: interest income                                                   16,673,615.70                       43,053,210.79

Gains/losses from exchange                                                    928,280.82                        -4,472,009.34

Handling charges                                                         4,308,059.74                           1,724,451.73

Total                                                                   15,935,073.06                      -34,606,959.25


50. Other income

                                                                                                                    Unit: yuan

            Sources of income generated                      Current period                       Last Period

Government grants with routine operation activity
                                                                        23,433,211.68                       43,932,417.68
concerned

Total                                                                   23,433,211.68                       43,932,417.68


51. Investment income

                                                                                                                    Unit: yuan

                        Item                                 Current period                       Last Period

Income of long-term equity investment calculated
                                                                       962,736,510.68                      785,533,710.72
based on equity

Investment income from holding financial assets                          3,468,760.80


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available for sales

Investment income of financial products                       140,176,231.37                   138,448,908.25

Other                                                            -609,970.51                         -408,092.36

Total                                                       1,105,771,532.34                   923,574,526.61


52. Income from change of fair value

                                                                                                        Unit: yuan

                       Sources                      Current period                    Last Period

Changes in the fair value of wealth management
                                                                5,597,561.64                         1,462,717.65
products

Changes in the fair value of the stocks of listed
companies held-excluding the stocks of listed
                                                              -91,729,334.10                        -1,204,560.00
companies that are included in other equity
instrument investments

Total                                                         -86,131,772.46                           258,157.65


53. Credit impairment loss

                                                                                                        Unit: yuan

                         Item                       Current period                    Last Period

Account receivable bad debt loss                                6,750,336.12                        -3,622,549.31

Total                                                           6,750,336.12                        -3,622,549.31


54. Assets impairment loss

                                                                                                        Unit: yuan

                         Item                       Current period                    Last Period

II. Loss of inventory falling price and loss of
                                                             -103,997,387.44                   -52,807,909.47
contract performance cost impairment

Total                                                        -103,997,387.44                   -52,807,909.47


55. Income from assets disposal

                                                                                                        Unit: yuan

                       Sources                      Current period                    Last Period

Income from disposal of non-current assets                      3,076,178.86                          503,005.53

Losses from disposal of non-current assets                       -149,592.04                         -270,505.98

Total                                                           2,926,586.82                          232,499.55




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56. Non-operating income

                                                                                                                                Unit: yuan

                                                                                                         Amount reckoned into current
               Item                       Current period                        Last Period
                                                                                                           non-recurring gains/losses

Other                                                   488,184.66                          164,150.94                        488,184.66

Total                                                   488,184.66                          164,150.94                        488,184.66

Government subsidies included in the current profit and loss: nil

57. Non-operating expense

                                                                                                                                Unit: yuan

                                                                                                     Amount reckoned into current
                  Item                            Current period              Last Period
                                                                                                         non-recurring gains/losses

Donation                                                   160,000.00               3,003,503.70                              160,000.00

Non-current assets disposal losses                         625,271.19                775,870.54                               625,271.19

Including: loss of fixed assets scrap                      625,271.19                775,870.54                               625,271.19

Local fund                                                                           343,760.00

Other                                                       66,356.11                  1,317.44                                 66,356.11

Total                                                      851,627.30               4,124,451.68                              851,627.30


58. Income tax expense


(1) Income tax expense

                                                                                                                                Unit: yuan

                         Item                                      Current period                            Last Period

Payable tax in current period                                              248,833,342.25                                   79,048,948.52

Adjusted the previous income tax                                              1,167,902.15                                  -3,635,148.44

Increase/decrease of deferred income tax assets                           -131,973,066.28                                  -16,387,431.29

Increase/decrease of deferred income tax liability                              -55,516.90                                  -1,520,916.67

Total                                                                      117,972,661.22                                   57,505,452.12


(2) Adjustment on accounting profit and income tax expenses

                                                                                                                                Unit: yuan

                                         Item                                                             Current period

Total profit                                                                                                           1,807,015,846.34

Income tax measured by statutory/applicable tax rate                                                                       271,052,376.95



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Impact by different tax rate applied by subsidies                                                                 -5,190,714.33

Adjusted the previous income tax                                                                                   1,167,902.15

Impact by non-taxable revenue                                                                                    -18,035,348.35

Impact by the deductible losses of the un-recognized previous deferred income tax                                   -879,192.06

The deductible temporary differences or deductible losses of the un-recognized
                                                                                                             -133,837,768.84
deferred income tax assets in the Period

Other                                                                                                              3,695,405.70

Income tax expense                                                                                               117,972,661.22


59. Other comprehensive income

See Note VII. 40 “Other comprehensive income”

60. Items of ash flow statement


(1) Other cash received in relation to operation activities

                                                                                                                      Unit: yuan

                    Item                                    Current period                         Last Period

Interest income                                                              16,673,615.70                        43,053,210.79

Government grants                                                             6,670,613.29                        21,365,245.08

Other                                                                          493,488.03                          6,383,457.07

Total                                                                        23,837,717.02                        70,801,912.94


(2) Other cash paid in relation to operation activities

                                                                                                                      Unit: yuan

                    Item                                    Current period                         Last Period

Cash cost                                                                250,964,650.29                          244,636,121.10

Other                                                                         9,252,217.76                        12,194,783.41

Total                                                                    260,216,868.05                          256,830,904.51


(3) Cash received from other investment activities

                                                                                                                      Unit: yuan

                    Item                                    Current period                         Last Period

Borit acquisition money returned                                              1,108,314.69

Total                                                                         1,108,314.69

Description of other cash received related to investment activities:




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                                                                             无锡威孚高科技集团股份有限公司 2021 年半年度报告全文



(4) Cash paid related with investment activities

Nil

(5) Other cash received in relation to financing activities

                                                                                                                                       Unit: yuan

                      Item                                     Current period                                    Last Period

Borrowings received by WFLD                                                                                                      5,470,000.00

Total                                                                                                                            5,470,000.00


(6) Cash paid related with financing activities

                                                                                                                                       Unit: yuan

                      Item                                     Current period                                    Last Period

Borrowing return by WFLD                                                         5,470,000.00

National debt paid transfer to loans                                              345,194.00

Lease payments                                                                   1,104,682.01

Stock repurchase                                                                                                               300,007,852.84

Total                                                                            6,919,876.01                                  300,007,852.84


61. Supplementary information to statement of cash flow

(1) Supplementary information to statement of cash flow
                                                                                                                                       Unit: yuan

                                Supplementary information                                       Current period             Last Period

1. Net profit adjusted to cash flow of operation activities:                                          --                          --

      Net profit                                                                                  1,689,043,185.12        1,346,270,263.67

      Add: Assets impairment provision                                                               97,247,051.32              56,430,458.78

           Depreciation of fixed assets, consumption of oil assets and depreciation
                                                                                                   188,585,414.05              170,298,478.93
of productive biology assets

           Depreciation of right-of-use assets                                                        3,246,652.07

           Amortization of intangible assets                                                         22,053,152.82              17,856,029.07

           Amortization of long-term deferred expenses                                               10,464,905.27               2,216,221.26

           Loss from disposal of fixed assets, intangible assets and other long-term
                                                                                                     -2,926,586.82                -232,499.55
assets (gain is listed with “-”)

           Losses on scrapping of fixed assets (gain is listed with “-”)                                 625,271.19             775,870.54

           Gain/loss of fair value changes (gain is listed with “-”)                               86,131,772.46                -258,157.65

           Financial expenses (gain is listed with “-”)                                            14,026,658.93               1,308,072.77


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            Investment loss (gain is listed with “-”)                                           -1,105,771,532.34     -923,574,526.61

            Decrease of deferred income tax asset ((increase is listed with “-”)                 -134,106,651.78       -16,604,858.64

            Increase of deferred income tax liability (decrease is listed with “-”)                 -2,907,134.81       -1,520,916.67

            Decrease of inventory (increase is listed with “-”)                                   622,604,921.62      722,938,987.42

            Decrease of operating receivable accounts (increase is listed with “-”)               -44,866,280.95    -1,396,333,918.08

            Increase of operating payable accounts (decrease is listed with “-”)                -1,402,007,014.29     457,453,317.78

            Other                                                                                    38,747,825.31            634,249.39

            Net cash flows arising from operating activities                                         80,191,609.17      437,657,072.41

2. Material investment and financing not involved in cash flow                                        --                      --

      Conversion of debt into capital

      Switching Company bonds due within one year

      financing lease of fixed assets

3. Net change of cash and cash equivalents:                                                           --                      --

      Balance of cash at period end                                                               1,476,008,228.28     1,708,154,488.87

      Less: Balance of cash equivalent at period-begin                                              944,946,018.70      820,498,653.85

      Add: Balance at period-end of cash equivalents

      Less: Balance at period-begin of cash equivalents

      Net increase of cash and cash equivalents                                                     531,062,209.58      887,655,835.02


(2) Net cash payment for the acquisition of a subsidiary in the period

Nil

(3) Net cash received from the disposal of subsidiaries

Nil

(4) Constitution of cash and cash equivalent

                                                                                                                                   Unit: yuan

                       Item                                     Ending balance                              Opening balance

I. Cash                                                                     1,476,008,228.28                            944,946,018.70

Including: Cash on hand                                                              118,837.77                                      507.66

          Bank deposit available for payment                                                                             944,945,511.04
                                                                            1,475,889,390.51
at any time

III. Balance of cash and cash equivalents at                                                                            944,946,018.70
                                                                            1,476,008,228.28
the period-end




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62. Note of the changes of owners’ equity

Explain the items and amount at period-end adjusted for “Other” at end of the last year: nil

63. Assets with ownership or use right restricted

                                                                                                                                Unit: yuan

        Item             Ending Book value                                        Restriction reason

Monetary funds                   587,241.00 L/ C Margin

Note receivable              755,821,058.54 Notes pledge for bank acceptance

Monetary funds                  5,956,935.70 Cash deposit paid for bank acceptance

Monetary funds                  2,838,880.93 Court freeze

Monetary funds                   206,740.00 Mastercard deposit

Receivables
                             155,506,772.41 Notes pledge for bank acceptance
financing

                                               In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492
                                               of Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as
                                               Shenzhen Intermediate People's Court), the property with the value of 217 million Yuan
Transaction
                             163,934,219.22 under the name of the Company and other seven respondents and the third party
financial asset
                                               Shenzhen Hejun Chuangye Holdings Co., Ltd. (Hereinafter referred to as Hejun
                                               Company) was frozen. As of the end of the reporting period, 4.71 million shares of
                                               Miracle Automation and 11,739,102 shares of SDEC held by the Company were frozen.

Total                       1,084,851,847.80                                              --

64. Item of foreign currency
(1) Item of foreign currency
                                                                                                                                Unit: yuan

                                        Closing balance of foreign
                  Item                                                        Rate of conversion            Ending RMB balance converted
                                                  currency

Monetary funds                                        --                                               --

Including: USD                                              4,246,556.10                         6.4601                    27,433,181.00

        EUR                                                 6,553,930.02                         7.6862                    50,374,771.13

        HKD                                                15,452,033.37                         0.8321                    12,857,636.97

        JPY                                                14,548,514.00                       0.058428                       850,040.58

        DKK                                                78,080,213.98                         1.0337                    80,711,517.19

Account receivable                                    --                                               --

Including: USD                                              4,162,801.11                         6.4601                    26,892,111.45

        EUR                                                  686,225.65                          7.6862                     5,274,467.59



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        JPY                                           13,660,250.00                      0.058428                      798,141.09

        DKK                                            6,202,972.20                        1.0337                    6,412,012.36

Long-term borrowings                             --                                            --

Including: EUR                                           380,142.19                        7.6862                    2,921,841.19

Other account receivables                                                                      --

Including: DKK                                         1,368,775.23                        1.0337                    1,414,902.96

Short-term borrowings

Including: USD                                         1,188,678.80                        6.4601                    7,678,983.92

        EUR                                           16,397,927.87                        7.6862                 126,037,753.19

Account payable

Including: USD                                           519,074.17                        6.4601                    3,353,271.05

        EUR                                            3,171,852.35                        7.6862                  24,379,491.53

        JPY                                           17,385,586.00                      0.058428                    1,015,805.02

        CHF                                              184,558.85                        7.0134                    1,294,385.04

        DKK                                            8,453,505.91                        1.0337                    8,738,389.06

        GBP                                                2,450.00                         8.941                       21,905.45

Other account payable

Including: DKK                                            74,147.89                        1.0337                       76,646.67


(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons

√ Applicable □ Not applicable

Subsidiary of the Company IRD was established in Denmark in 1996. The 66% equity of IRD were required by the Company in cash
in April 2019, and in October 2020, increasing the shareholding to 34.00% by cash purchase. After the increase in holdings, the
company acquired 100.00% of the company's equity. Book-keeping currency of IRD was Danish krone, and IRD mainly engaged in
the R&D, production and sales of fuel cell components.
Subsidiary Borit was established in Belgium in 2010. the Company acquired 100% equity of Borit by cash acquisition in November
2020. Borit is denominated in Euro and engaged in the R&D, production and sales of fuel cell components.

65. Government grants

(1) Government grants
                                                                                                                         Unit: yuan

                                                                                                           Amount reckoned in
                     Category                            Amount                   Item
                                                                                                            current gain/loss

Newly-added corporate subsidies in 2019                   240,000.00          Other income                             240,000.00




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Job stabilization subsidy                                 582,920.07            Other income                            582,920.07

Intelligent manufacturing and technological
                                                          712,000.00            Other income                            712,000.00
transformation awards and supplementary funds

Nanjing Postdoctoral Innovation Practice Base
                                                          250,000.00            Other income                            250,000.00
was selected for funding in 2019

2019 Quality Award and Finalist Award                     110,000.00            Other income                            110,000.00

High-tech enterprise rewards                              280,000.00            Other income                            280,000.00

Intellectual Property Special Fund                          50,000.00           Other income                             50,000.00

"Work for training" subsidy                               396,280.00            Other income                            396,280.00

Training subsidy                                          122,489.68            Other income                            122,489.68

Service charge for three agencies                         877,260.62            Other income                            877,260.62

Other                                                   3,049,662.92 Deferred income, other income                    1,928,354.73

Total                                                   6,670,613.29


(2) Government grants rebate

□ Applicable √ Not applicable

66. Other

Nil


VIII. Changes of consolidation scope

1. Enterprise combine not under the same control


(1) Enterprise combines not under the same control occurred in the period

Nil

(2) Combination cost and goodwill

Nil

(3) Identifiable assets and liability on purchasing date under the purchaser

Nil

(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date

Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not

□ Yes   √ No



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(5) Notes relating to the purchase date or the end of the period in which the merger consideration or the
fair value of the purchasee’s identifiable assets and liabilities cannot be reasonable determined

Nil


(6) Other explanation

Nil


2. Enterprise combine under the same control

(1) Business combinations under the same control that occurred in the current period

Nil


(2) Consolidation cost

Nil


(3) Book value of assets and liabilities of the merged party on the merger date

Nil


3. Reverse purchase

Nil


4. Disposal of subsidiaries

Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control

□ Yes √ No

Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
period

□ Yes √ No


5. Other reasons for consolidation range changed

Explain the reasons on consolidate scope changes (i.e. subsidiary newly established, subsidiary liquidation etc.) and relevant
information: nil


6. Other

Nil




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IX. Equity in other entity

1. Equity in subsidiary

(1) Constitute of enterprise group


                                                                                    Share-holding ratio
                 Main operation Registered
  Subsidiary                                             Business nature                                           Acquired way
                       place         place
                                                                                    Directly    Indirectly

                                               Spare parts of                                                Enterprise combines under
WFJN            Nanjing           Nanjing                                              80.00%
                                               internal-combustion engine                                    the same control

                                               Automobile exhaust purifier,                                  Enterprise combines under
WFLD            Wuxi              Wuxi                                                 94.81%
                                               muffler                                                       the same control

                                               Spare parts of
WFMA            Wuxi              Wuxi                                               100.00%                 Investment
                                               internal-combustion engine
                                               Spare parts of
WFCA            Wuxi              Wuxi                                               100.00%                 Investment
                                               internal-combustion engine
                                                                                                             Enterprise combines under
WFTR            Wuxi              Wuxi         Trading                               100.00%
                                                                                                             the same control

                                               Spare parts of
WFSC            Wuxi              Wuxi                                                 66.00%                Investment
                                               internal-combustion engine
                                               Spare parts of                                                Enterprise combines not
WFTT            Ningbo            Ningbo                                               98.83%       1.17%
                                               internal-combustion engine                                    under the same control
                                               Spare parts of                                                Enterprise combines not
WFAM            Wuxi              Wuxi                                                 51.00%
                                               internal-combustion engine                                    under the same control
WFLD                                           Automobile exhaust purifier,
                Wuhan             Wuhan                                                           60.00% Investment
(Wuhan)                                        muffler

WFLD                              Chongqin Automobile exhaust purifier,
                Chongqing                                                                        100.00% Investment
(Chongqing)                       g        muffler

WFLD                                           Automobile exhaust purifier,
                Nanchang          Nanchang                                                       100.00% Investment
(Nanchang)                                     muffler

WFAS            Wuxi              Wuxi         Smart car equipment                                66.00% Investment

                                                                                                             Enterprise combines not
WFDT            Wuxi              Wuxi         Hub Motor                               80.00%
                                                                                                             under the same control

SPV             Denmark           Denmark      Investment                            100.00%                 Investment

                                                                                                             Enterprise combines not
IRD             Denmark           Denmark      Fuel cell components                              100.00%
                                                                                                             under the same control
                                                                                                             Enterprise combines not
IRD America America               America      Fuel cell components                              100.00%
                                                                                                             under the same control
                                                                                                             Enterprise combines not
Borit           Belgium           Belgium      Fuel cell components                              100.00%
                                                                                                             under the same control
                                                                                                             Enterprise combines not
Borit Inc.      America           America      Fuel cell components                              100.00%
                                                                                                             under the same control

Explanation on share-holding ratio in subsidiary different from ratio of voting right: nil



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(2) Important non-wholly-owned subsidiary


                                                                                                                                     Unit: yuan

                                                                                      Dividend announced to
                             Share-holding ratio of       Gains/losses attributable                                      Ending equity of
        Subsidiary                                                                    distribute for minority in
                                      minority            to minority in the Period                                         minority
                                                                                             the Period

WFJN                                             20.00%              18,025,843.29               13,970,282.31                204,020,909.90

WFSC                                             34.00%               3,546,302.29                                             19,941,189.44

WFLD                                             5.19%                5,163,616.93                                            112,471,477.85

WFAM                                             49.00%              17,106,156.82                                            194,373,455.05

Total                                                                43,841,919.33               13,970,282.31                530,807,032.24

Explanation on holding ratio different from the voting right ratio for minority shareholders: nil


(3) Main finance of the important non-wholly-owned subsidiary


                                                                                                                                     Unit: yuan

                                                                        Ending balance

   Subsidiary                                                                                             Non-current
                     Current assets     Non-current assets       Total assets     Current liabilities                         Total liabilities
                                                                                                           liabilities

WFJN                 1,231,685,952.53      291,111,356.12 1,522,797,308.65            459,479,297.72      41,221,031.28        500,700,329.00

WFSC                  203,975,392.09        46,803,431.06       250,778,823.15        191,734,028.74                           191,734,028.74

WFLD                 4,690,674,119.14 1,285,388,464.31 5,976,062,583.45 3,886,446,188.33                  28,645,721.63 3,915,091,909.96

WFAM                  355,697,962.25       423,129,679.73       778,827,641.98        313,736,049.27      68,286,160.82        382,022,210.09

Total                6,482,033,426.01 2,046,432,931.22 8,528,466,357.23 4,851,395,564.06 138,152,913.73 4,989,548,477.79



                                                                                                                                     Unit: yuan

                                                                       Opening balance

   Subsidiary                                                                                             Non-current
                     Current assets     Non-current assets       Total assets     Current liabilities                         Total liabilities
                                                                                                           liabilities

WFJN                 1,182,876,680.02      293,436,809.97 1,476,313,489.99            433,667,329.34      42,293,914.58        475,961,243.92

WFSC                  213,435,154.59        47,533,838.59       260,968,993.18        212,812,487.33                           212,812,487.33

WFLD                 4,942,039,786.72 1,210,789,869.04 6,152,829,655.76 4,204,615,377.36                  30,414,322.76 4,235,029,700.12

WFAM                  323,378,083.30       427,175,823.65       750,553,906.95        321,531,075.82      67,092,155.28        388,623,231.10

Total                6,661,729,704.63 1,978,936,341.25 8,640,666,045.88 5,172,626,269.85 139,800,392.62 5,312,426,662.47




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                                                                                                                Unit: yuan

                                                            Current period

      Subsidiary                                                        Total comprehensive      Cash flow from operation
                   Operation Income            Net profit
                                                                              income                     activity

WFJN                      541,395,186.39            88,001,445.49                88,001,445.49             -11,789,938.06

WFSC                      206,427,800.85            10,430,300.86                10,430,300.86              45,758,253.85

WFLD                    4,394,119,908.54           139,109,362.55               139,109,362.55            -670,433,668.67

WFAM                      308,180,892.75            34,874,756.04                34,874,756.04              25,574,054.82

Total                   5,450,123,788.53           272,415,864.94               272,415,864.94            -610,891,298.06



                                                                                                                Unit: yuan

                                                             Last Period

      Subsidiary                                                        Total comprehensive      Cash flow from operation
                   Operation Income            Net profit
                                                                              income                     activity

WFJN                      352,597,870.12            71,027,425.74                71,027,425.74              13,549,394.41

WFSC                       98,614,059.14             4,832,191.04                 4,832,191.04             -15,080,952.12

WFLD                    3,307,136,098.12            89,024,252.11                89,024,252.11            194,818,501.61

WFAM                      174,153,210.61            10,975,202.52                10,975,202.52             -11,097,809.19

Total                   3,932,501,237.99           175,859,071.41               175,859,071.41            182,189,134.71


(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

(1) Owners’ equity shares changed in subsidiary

Nil


(2) Impact on minority’s interest and owners’ equity attributable to parent company

Nil




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3. Equity in joint venture and associated enterprise

(1) Important joint venture and associated enterprise

                                                                                                 Share-holding ratio       Accounting
                                                                                                                          treatment on
                                                 Main
                                                            Registered                                                    investment for
   Joint venture or associated enterprise      operation                    Business nature
                                                                  place                          Directly   Indirectly joint venture and
                                                 place
                                                                                                                            associated
                                                                                                                            enterprise

Wuxi Weifu Environmental Catalysts.
                                             Wuxi           Wuxi          Catalyst                            49.00% Equity method
Co., Ltd.
                                                                          Internal-combustion
RBCD                                         Wuxi           Wuxi                                  32.50%       1.50% Equity method
                                                                          engine accessories
Zhonglian Automobile Electronics Co.,                                     Internal-combustion
                                             Shanghai       Shanghai                              20.00%               Equity method
Ltd.                                                                      engine accessories
Weifu Precision Machinery                                                 Internal-combustion
                                             Wuxi           Wuxi                                  20.00%               Equity method
Manufacturing Co., Ltd.                                                   engine accessories
Changchun Xuyang Weifu Automobile                           Changchu Automobile
                                             Changchun                                                        34.00% Equity method
Components Technology Co., Ltd.                             n        components
Precors GmbH                                 Germany        Germany       Fuel cell parts                      8.11% Equity method
Holding shares ratio different from the voting right ratio: nil
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold: Borit
NV holds 8.11% equity of Precors GmbH. The Board of Precors GmbH is composed of four directors, one of whom is appointed by
Borit NV, and the director also serves as the chairman of the Board of Precors GmbH. Accordingly, the company uses the equity
method for accounting the investment of Precors GmbH.


(2) Main financial information of the important joint venture

Nil


(3) Main financial information of the important associated enterprise

                                                                                                                                Unit: yuan

                               Ending balance/Current period                                    Opening balance/Last Period
                                                                  Zhonglian                                                   Zhonglian
                       WFEC                 RBCD                                       WFEC                 RBCD
                                                                  Electronics                                                 Electronics
Current assets    4,850,368,338.98     14,964,413,252.68 1,128,380,328.27 4,446,438,334.10            11,965,249,225.12      201,344,601.39
Non -current
                    350,709,726.59      2,840,713,952.19 5,947,775,620.56            363,513,166.84    2,995,027,302.84 5,985,689,857.38
assets
Total assets      5,201,078,065.57     17,805,127,204.87 7,076,155,948.83 4,809,951,500.94            14,960,276,527.96 6,187,034,458.77
Current
                  3,411,352,894.29      9,921,493,414.10      995,363,537.27 3,251,776,146.44          7,423,648,562.76        3,687,897.36
liabilities
Non-current
                    218,098,254.70                                 2,608,374.90      175,895,402.90                            2,638,609.61
liabilities
Total             3,629,451,148.99      9,921,493,414.10      997,971,912.17 3,427,671,549.34          7,423,648,562.76        6,326,506.97


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liabilities
Attributable to
parent
company           1,571,626,916.58     7,883,633,790.77 6,078,184,036.66 1,382,279,951.60     7,536,627,965.20 6,180,707,951.80
shareholders’
equity
Share of net
assets
calculated by      770,097,189.12      2,680,435,488.86 1,215,636,807.33     677,317,176.28   2,562,453,508.17 1,236,141,590.36
shareholding
ratio
--Goodwill                              267,788,761.35      1,407,265.96                        267,788,761.35       1,407,265.96
--Unrealized
profit of
                                         -35,689,909.35                                          -29,652,559.84
internal
trading
--Other                                           -0.28            -0.01                                  -0.28             -0.01
Book value of
equity
investment in      770,097,189.12      2,912,534,340.58 1,217,044,073.28     677,317,176.28   2,800,589,709.40 1,237,548,856.31
associated
enterprise
Operation
                  4,268,529,267.97    10,208,920,776.81    11,255,332.80 3,456,176,529.08      7,807,711,867.16     11,705,308.41
income
Net profit         184,342,978.45      1,988,551,544.06   891,476,084.86     114,476,846.31   1,764,998,863.92     634,241,700.83
Total
comprehensiv       184,342,978.45      1,988,551,544.06   891,476,084.86     114,476,846.31   1,764,998,863.92     634,241,700.83
e income
Dividends
received from
associated          49,000,000.00       279,062,772.15                                          900,840,579.51     140,200,000.00
enterprise in
the year


(4) Financial summary for non-important Joint venture and associated enterprise

                                                                                                                      Unit: yuan

                                                     Ending balance/Current period            Opening balance/Last Period

Joint venture:                                                    --                                      --

Amount based on share-holding ratio                               --                                      --

Associated enterprise:                                            --                                      --

Total book value of investment                                         110,847,667.12                             86,032,548.98

Amount based on share-holding ratio                               --                                      --

--Net profit                                                               19,892,865.88                            -732,249.42

--Total comprehensive income                                               19,892,865.88                            -732,249.42




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(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise

Nil


(6) Excess loss occurred in joint venture or associated enterprise

Nil


(7) Unconfirmed commitment with joint venture investment concerned

Nil


(8) Intangible liability with joint venture or associated enterprise investment concerned

Nil


4. Major conduct joint operation

Nil


5. Structured body excluding in consolidate financial statement

Relevant explanations for structured entities not included in the scope of the consolidated financial statements: nil


6. Other

Nil


X. Risk related with financial instrument
Main financial instrument of the Company including monetary funds, structured deposits, account receivable,
equity instrument investment, financial products, loans, and 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 caring risk management, supervise the vary risks timely and reliably in order to control the risk in a
limited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainly
including credit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the risk
management target and policy-making, and takes ultimate responsibility for the target of risk management and
policy. Compliance department and financial control department manager and monitor those risk exposures to
ensuring the risks are control in a limited range.
1. Credit Risk
Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations, and resulting
in the financial loss of other party. The company's credit risk mainly comes from monetary funds, structured


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deposits, note receivable, account receivable, other account receivables. The management has established an
appropriate credit policy and continuously monitors the exposure to these credit risks.
The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions
such as commercial banks, the management believes that these commercial banks have higher credit and asset
status, and have lower credit risks. The Company adopts quota policies to avoid credit risks to any financial
institutions.
For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the
credit risk exposure. To prevent the risks, the company has formulated a new customer credit evaluation system
and an existing customer credit sales balance analysis system. The new customer credit evaluation system aims at
new customers, the company will investigate a customer’s background according to the established process to
determine whether to give the customer a credit line and the credit line size and credit period. Accordingly, the
company has set a credit limit and a credit period for each customer, which is the maximum amount that does not
require additional approval. The analysis system for credit sales balance of existing customers means that after
receiving a purchase order from an existing customer, the company will check the order amount and the balance
of the accounts owed by the customer so far, if the total of the two exceeds the credit limit of the customer, the
company can only sell to the customer on the premise of additional approval, otherwise the customer must be
required to pay the corresponding amount in advance. In addition, for the credit sales that have occurred, the
company analyzes and audits the monthly statements for risk warning of accounts receivable to ensure that the
company’s overall credit risk is within a controllable range.
The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance
sheet.
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
fluctuations in the market price changes and produce, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.
IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, in
line with the anticipative change orientation, choose floating rate or fixed rate, that is the rate in future period will
goes up prospectively, than choose fixed rate; if the rate in future period will decline prospectively, than choose
the floating rate. In order to minor the bad impact from difference between the expectation and real condition,
loans for liquid funds of the Company are choose the short-term period, and agreed the terms of prepayment in
particular.
(2) Foreign exchange (FX) risk
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly
related with the USD, EUR, SF, JPY, HKD, DKK except for the USD, EUR, SF, JPY, HKD and DKK carried out
for the equipment purchasing of parent company and WFAM, material purchasing of parent company, technical
service and trademark usage costs of parent company, the import and export of WFTR, operation of IRD and
operation of Borit, 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

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financial instrument, considered by management of the Company.
End as 30 June 2021, 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 2021:
             Item            Ending foreign currency                            Ending RMB balance
                                                         Convert rate                                    Ratio in assets (%)
                                     balance                                         converted
Monetary funds
Including: USD                          4,246,556.10                  6.4601          27,433,181.0000                     0.10

EUR                                     6,553,930.02                  7.6862          50,374,771.1300                     0.18

HKD                                   15,452,033.37                   0.8321          12,857,636.9700                     0.05

JPY                                   14,548,514.00                   0.0584             850,040.5800                     0.00

DKK                                   78,080,213.98                   1.0337          80,711,517.1900                     0.29

Account receivable
Including: USD                          4,162,801.11                  6.4601            26,892,111.45                     0.10

EUR                                      686,225.65                   7.6862             5,274,467.59                     0.02

JPY                                   13,660,250.00                   0.0584               798,141.09                     0.00

DKK                                     6,202,972.20                  1.0337             6,412,012.36                     0.02

Other account receivables
Including: DKK                          1,368,775.23                  1.0337             1,414,902.96                     0.01

Total ratio in assets                                                                                                     0.77

② Foreign currency liability of the Company till end of 30 June 2021:
            Item                 Ending foreign
                                                       Convert rate       Ending RMB balance converted   Ratio in assets(%)
                                currency balance
Short-term borrowings
Including: USD                        1,188,678.80               6.4601                   7,678,983.92                    0.09
EUR                                  16,397,927.87               7.6862                 126,037,753.19                    1.43
Long-term borrowings
Including: EUR                          380,142.19               7.6862                   2,921,841.19                    0.03
Account payable
Including: USD                          519,074.17               6.4601                   3,353,271.05                    0.04
EUR                                   3,171,852.35               7.6862                  24,379,491.53                    0.28
JPY                                  17,385,586.00               0.0584                   1,015,805.02                    0.01
CHF                                     184,558.85               7.0134                   1,294,385.04                    0.01
DKK                                   8,453,505.91               1.0337                   8,738,389.06                    0.10

GBP                                        2,450.00               8.941                      21,905.45                    0.00
Other account payable
Including: DKK                           74,147.89               1.0337                    76,646.6700                    0.00

Total ratio in liabilities                                                                                                1.99

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③ Other pricing risk 1
The equity instrument investment held by the Company with classification as transaction financial asset and other
non-current financial assets are measured on fair value of the balance sheet date. The fluctuation of expected price
for these investments will affect the gains/losses of fair value changes for the Company.
Furthermore, on the premise of deliberated and approved in 10th session of 8th BOD, the Company exercise entrust
financing with the self-owned idle capital; therefore, the Company has the risks of collecting no principal due to
entrust financial products default. Aims at such risk, the Company formulated a “Management Mechanism of
Capital Financing”, and well-defined the authority approval, investment decision-making, calculation
management and risk controls for the entrust financing in order to guarantee a security funds and prevent
investment risk efficiently. In order to lower the adverse impact from unpredictable factors, the Company choose
short-term and medium period for investment and investment product’s term is up to 3 years in principle; in
variety of investment, the Company did not invest for the stocks, derivative products, security investment fund
and the entrust financial products aims at security investment as well as other investment with securities
concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the
enterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has rich
capital to pay the due debts, therefore, a financial control department is established for collectively controlling
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

                                                                                                                   Unit: yuan

                                                                             Ending fair value
                     Item
                                                First-order        Second-order           Third-order           Total

I. Sustaining measured by fair value                --                  --                       --               --

(I) Transaction financial asset                 175,373,897.56      247,915,991.34       5,959,651,469.27   6,382,941,358.17

1.Financial assets measured at fair value and
whose changes are included in current profit    175,373,897.56      247,915,991.34       5,959,651,469.27   6,382,941,358.17
or loss

(1) Investment in debt instruments                                                       5,761,211,170.27   5,761,211,170.27

(2) Investment in equity instruments            175,373,897.56      247,915,991.34         198,440,299.00    621,730,187.90


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(III) Other equity instrument investment                                                           285,048,000.00       285,048,000.00

(IV) Accounts receivable financing                                                                 595,411,852.58       595,411,852.58

Total liability sustaining measured by fair
                                                      175,373,897.56         247,915,991.34      6,840,111,321.85     7,263,401,210.75
value

II. Non-persistent measure                                 --                    --                    --                    --


2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order

On 30 June 2021, the financial assets available for sale-equity instrument investment held by the Company refers to the SDEC (stock
code: 600841), Miracle Automation (Stock code: 002009) and Lifan Technology (Stock code: 601777), determining basis of the
market price at period-end refers to the closing price of 30 June 2021.


3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second-order

On 30 June 20210, other non-current financial assets-equity instrument investment held by the Company refers to the Guolian
Securities (stock code: 601456), determining basis of the market price at period-end refers to the closing price and liquidity discounts
of 30 June 2021.


4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third-order

(1) Fair value of wealth management products
The fair value of wealth management products is determined by the Company using discounted cash flow valuation techniques.
Among them, the important unobservable input values are mainly the expected annualized rate of return and the risk factor of wealth
management products.
(2) Financing of accounts receivable
For this part of financial assets, the Company uses discounted cash flow valuation techniques to determine its fair value. Among them,
important unobservable input values mainly include discount rate and contractual cash flow maturity period. The cash flow with a
contract expiration period of 12 months (inclusive) shall not be discounted, and the cost shall be regarded as its fair value.

(3) Fair value of equity instrument investment and other equity instrument investment
Due to the lack of market liquidity for this part of financial assets, the Company uses the replacement cost method to determine its
fair value. Among them, the important unobservable input values mainly include the financial data of the invested company, etc.


5. Continuous third-level fair value measurement items, adjustment information between the opening and
closing book value and sensitivity analysis of unobservable parameters

Nil


6. Continuous fair value measurement items, if there is a conversion between various levels in the current
period, the reasons for the conversion and the policy for determining the timing of the conversion

Nil




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7. Changes in valuation technology during the current period and reasons for the changes

Nil


8. The fair value of financial assets and financial liabilities not measured by fair value

Nil


9. Other

Nil


XII. Related party and related party transactions

1. Parent company of the enterprise

                                                                                          Share-holding ratio
                                                                                                                Voting right ratio on
   Parent company        Registration place     Business nature      Registered capital   on the enterprise for
                                                                                                                   the enterprise
                                                                                            parent company
      Wuxi Industry                               Operation of       5172.6571 million
                               Wuxi                                                                    20.22%                  20.22%
        Group                                  state-owned assets          Yuan

Explanation on parent company of the enterprise
Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own assets, house leasing services, self-operating and acting
as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are
restricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibited items).
(Projects that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).

Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.

Other explanation:nil

2. Subsidiary of the enterprise

Found more in Note IX. 1.” Equity in subsidiary”

3. Joint venture and associated enterprise

Found more in Note IX.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: Nil

4. Other Related party

                         Other Related party                                        Relationship with the Enterprise

Robert Bosch Company                                                Second largest shareholder of the Company

Key executive                                                       Director, supervisor and senior executive of the Company

5. Related transaction

(1) Goods purchasing, labor service providing and receiving

Goods purchasing/labor service receiving


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                                                                                                                               Unit: yuan

                                                                                             Whether more than
                           Content of related                               Approved
      Related party                                 Current period                           the transaction limit       Last Period
                              transaction                                transaction limit
                                                                                                     (Y/N)

Weifu Precision
                       Goods and labor                 18,852,456.91         42,000,000.00            N                   14,833,622.63
Machinery

RBCD                   Goods and labor                218,444,783.58        335,000,000.00            N                   12,261,781.92

WFEC                   Goods                          905,770,785.87      1,650,000,000.00            N               1,824,736,274.77

Robert Bosch
                       Goods and labor                115,666,003.14        215,000,000.00            N                   63,669,835.20
Company

Shinwell
                       Goods                                                  1,000,000.00            N                       881,887.67
Automobile

Goods sold/labor service providing

                                                                                                                               Unit: yuan

           Related party            Content of related transaction          Current period                      Last Period

Weifu Precision Machinery           Goods and labor                                  19,742,012.48                            774,094.06

RBCD                                Goods and labor                              2,250,967,590.73                     1,551,233,591.58

WFEC                                Goods and labor                                   3,581,524.21                         9,749,595.04

Robert Bosch Company                Goods and labor                                649,193,996.57                        276,348,061.10

Shinwell Automobile                 Goods                                                29,250.79                             67,648.59

Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services: Nil


(2) Related trusteeship management/contract & entrust management/ outsourcing

Nil


(3) Related lease

As a lessor for the Company:
                                                                                                                               Unit: yuan

                                                                       Lease income recognized in the Lease income recognized at last
              Lessee                            Assets type
                                                                                   Period                            Period

WFEC                                Workshop                                                                               1,254,028.50


(4) Related guarantee

Nil

(5) Related party’s borrowed/lending funds

Nil


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(6) Related party’s assets transfer and debt reorganization

Nil


(7) Remuneration of key manager

                                                                                                                           Unit: yuan

                     Item                                    Current period                             Last Period

Remuneration of key manager                                                   6,230,000.00                             3,050,000.00


(8) Other related transactions

                                                                                                                           Unit: yuan

         Related party                                       Item                            Current period           Last Period
RBCD                             Payment of technical commission fees, etc.                                               295,419.00
RBCD                             Procurement of fixed assets                                        528,378.37            162,692.06
Robert Bosch Company             Payment of technical commission fees, etc.                       4,123,940.70            140,558.40
Robert Bosch Company             Sale of fixed assets                                               272,339.98           3,193,888.25
Robert Bosch Company             Procurement of fixed assets                                        599,549.16
Weifu Precision Machinery        Procurement of fixed assets                                                                50,000.00
WFEC                             Sale of fixed assets                                               414,601.77           9,036,316.74
Wuxi Industry Group              Payment of interest                                                                         5,348.44

6. Receivable/payable items of related parties

(1) Receivable item

                                                                                                                           Unit: yuan

                                                              Ending balance                         Opening balance
       Item                 Related party
                                                  Book balance         Bad debt provision    Book balance        Bad debt provision
                       Weifu Precision
Account receivable                                      2,392,377.42            14,612.15         160,565.87
                       Machinery
Other account          Weifu Precision
receivables            Machinery
Account receivable     RBCD                       932,304,823.41                59,766.10     549,543,387.12
Account paid in
                       RBCD                              116,976.59
advance
Account receivable     Robert Bosch Company       248,253,462.67               758,645.71     205,738,695.62              84,473.87
Other account
                       Robert Bosch Company
receivables
Account paid in
                       Robert Bosch Company             1,979,474.92                            2,970,930.93
advance
Account receivable     WFEC                               64,400.00              6,440.00         642,390.75
Other account
                       WFEC                                                                    49,000,000.00
receivables




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(2) Payable item

                                                                                                                        Unit: yuan

               Item                       Related party               Ending book balance             Opening book balance

Account payable                   Weifu Precision Machinery                        11,702,777.54                   12,959,303.46

Other account payable             Weifu Precision Machinery                                                             29,000.00

Account payable                   WFEC                                           559,584,991.66                   850,384,640.88

Account payable                   RBCD                                           103,326,693.22                      7,178,387.17

Account payable                   Robert Bosch Company                             12,919,178.47                     5,370,249.46

Account payable                   Shinwell Automobile                                                                   19,320.30

Other current liabilities         RBCD                                                      0.05                  169,620,804.78

Other current liabilities         Weifu Precision Machinery                           425,076.87                        74,778.76

Other current liabilities         Robert Bosch Company                                  2,081.71

Other current liabilities         WFEC                                                183,514.51

Other account payable             Wuxi Industry Group                                  49,246.71                     5,474,862.22

Contract liabilities              Weifu Precision Machinery                         3,269,822.06                      619,469.03

Contract liabilities              RBCD                                                      0.36                             0.36

Contract liabilities              Robert Bosch Company                                 16,013.14                        18,094.85

Contract liabilities              WFEC                                              1,411,650.11

7. Undertakings of related party

Nil

8. Other

Nil


XIII. Share-based payment

1. Overall situation of share-based payment

√ Applicable □ Not applicable

                                                                                                                        Unit: yuan

Total amount of various equity instruments granted by the company in the
                                                                                                                             0.00
current period
Total amount of various equity instruments exercised by the company in
                                                                                                                             0.00
the current period
Total amount of various equity instruments invalidated by the company in
                                                                                                                             0.00
the current period
                                                                           The grant price is 15.48 Yuan per share; the exercise
The scope of the exercise price of the stock options issued by the company
                                                                           time is from the first trading day 24 months after the
at the end of the period and the remaining period of the contract
                                                                           completion of the registration of the restricted stocks

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                                                                             granted in the first tranche to the last trading day within
                                                                             60 months from the date of completion of the
                                                                             registration of the restricted stock granted in the first
                                                                             tranche, so the remaining period of the contract is 4
                                                                             years and 5 months.
The scope of the exercise price of other equity instruments issued by the
                                                                          N/A
company at the end of the period and the remaining period of the contract


2. Share-based payment settled by equity

√ Applicable □ Not applicable

                                                                                                                               Unit: yuan

Method for determining the fair value of equity instruments on the     Determine based on the closing price of the restricted stock on
grant date                                                             the grant date

Basis for determining the number of vesting equity instruments         Unlocking conditions

Reasons for the significant difference between estimate in the
                                                                       N/A
current period and estimate in the prior period
Cumulative amount of equity-settled share-based payments
                                                                                                                        45,010,559.27
included in the capital reserve
Total amount of expenses confirmed by equity-settled share-based
                                                                                                                        38,525,721.77
payments in the current period

Other explanation
This restricted stock incentive plan has been reviewed and approved by the company's second extraordinary general meeting of
shareholders in 2020. The overview of this restricted stock incentive plan is as follows:
(1) Stock source: the company's A-share common stock repurchased from the secondary market.
(2) Grant date: November 12, 2020.
(3) Grant objects and number of grants: 19,540,000 restricted stocks were granted to 601 incentive objects of the company and its
subsidiaries.
(4) Grant price: 15.48 Yuan/share.
(5) Grant registration completion date: December 4, 2020.
(6) Lifting the restrictions on sales:

                                                                                                                             Ratio of unlocked
   Unlock period                                                   Unlock time                                               quantity to granted
                                                                                                                                  quantity
                       Starting from the first trading day 24 months after the completion of the registration of the first
Phase I unlocked                                                                                                                    4/10
                       grant and ending on the last trading day within 36 months
                       Starting from the first trading day 36 months after the completion of the registration of the first
Phase II unlocked                                                                                                                   3/10
                       grant and ending on the last trading day within 48 months
                       Starting from the first trading day 48 months after the completion of the registration of the first
Phase III unlocked                                                                                                                  3/10
                       grant and ending on the last trading day within 60 months
(7) Performance appraisal requirements at the company level:
 Unlock conditions                                               Performance appraisal requirements
                   1. the weighted average ROE for year of 2021 is not less than 10%;
                   2. the growth rate of self-operating profit in 2021 will not be less than 6% compared with the year of 2019, the
The first batch of
                   absolute amount will not be less than 845 million Yuan;
unlock conditions
                   3. the cash dividends for year of 2021 shall be no less than 50% of the profit available for distribution of the current
                   year.


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                     1. the weighted average ROE for year of 2022 is not less than 10%;
                     2. the growth rate of self-operating profit in 2022 will not be less than 12% compared with the year of 2019, the
The second batch of
                     absolute amount will not be less than 892 million Yuan;
unlocking conditions
                     3. the cash dividends for year of 2022 shall be no less than 50% of the profit available for distribution of the current
                     year.
                     1. the weighted average ROE for year of 2023 is not less than 10%;
                     2. the growth rate of self-operating profit in 2023 will not be less than 20% compared with the year of 2019, the
The third batch of
                     absolute amount will not be less than 958 million Yuan;
unlocking conditions
                     3. the cash dividends for year of 2023 shall be no less than 50% of the profit available for distribution of the current
                     year.
Other explanation: self-operating profit refers to the net profit attributable to the owners of the parent company after deducting
non-recurring gains and losses, and deducting the investment income from RBCD and Zhonglian Electronics.


3. Share-based payment settled by cash

□ Applicable √ Not applicable


4. Modification and termination of share-based payment

Nil


5. Other

Nil


XIV. Undertakings or contingency

1. Important undertakings

Important undertakings on balance sheet date

Nil

2. Contingency

(1) Contingency on balance sheet date

Nil

(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

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2. Profit distribution

Nil


3. Sales return

Nil


4. Other events after balance sheet date

Nil


XVI. Other important events

1. Previous accounting errors collection

Nil

2. Debt restructuring

Nil

3. Assets replacement

Nil

4. Pension plan

The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th session of 7th BOD: in
order to mobilize the initiative and creativity of the employees, established a talent long-term incentive
mechanism, enhance the cohesive force and competitiveness in enterprise, the Company carried out the
above-mentioned annuity plan since the date of reply of plans reporting received from labor security
administration department. Annuity plans are: the annuity fund are paid by the enterprise and employees together;
the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the enterprise per year,
the combined contribution of the enterprise and the individual employee shall not exceed 12% of the total salary
of the employees of the enterprise. 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 8 percent of the total salary of last year, the maximum annual
allocation to employees shall not exceed five times the average allocation to employees and the excess shall not be
counted towards the allocation. The individual contribution is limited to 1% of one’s total salary for the previous
year. Specific paying ratio later shall be adjusted 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.



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5. Termination of operation

Not applicable


6. Segment

(1) Recognition basis and accounting policy for reportable segment

Determine the operating segments in line with the internal organization structure, management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have been
satisfied at the same time:
① The component is able to generate revenues and expenses in routine activities;
② Management of the Company is able to assess the operation results regularly, and determine resources
allocation and performance evaluation for the component;
③ Being analyzed, financial status, operation results and cash flow of the components are able to require by the
Company
The Company mainly engaged in the manufacture of fuel system of internal combustion engine and fuel cell
components products, auto components, muffler and purifier etc., based on the product segment, the Company
determine three reporting segments as auto fuel injection system and fuel cell components, air management
system and automotive post processing system. Accounting policy for the three reporting segments are shares the
same policy state in Note III
Segment assets exclude transaction financial asset, other account receivables-dividend receivable, other
non-current financial assets, other equity instrument investment, long term equity investment and other
undistributed assets, since these assets are not related to products operation.

(2) Financial information for reportable segment

                                                                                                               Unit: yuan

                                                                          Add:
                                                                  investment/income
                                                                       measured by
                                                                    equity, income of
                                                                   financial products
                  Automotive fuel Product segment Product segment
                                                                   or possession and
                  injection system    of automotive     of air                             Offset of
      Item                                                          disposal income,                         Total
                 and fuel cell parts post processing management                            segment
                                                                   the retained assets
                  product division        system       system
                                                                    or gains/losses as
                                                                  the financial assets
                                                                    available for sale
                                                                   or possession and
                                                                     disposal income
Operating
                  4,305,354,512.04 4,394,119,908.54   405,399,927.28                      67,182,591.62 9,037,691,756.24
revenue
Operating cost    3,239,720,153.16 4,036,287,975.75   273,030,571.13                      51,121,542.97 7,497,917,157.07
Total Profit       644,258,758.92     63,621,512.18    76,012,351.93   1,022,879,974.51    -243,248.80 1,807,015,846.34



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   Net profit              558,400,473.39       53,595,201.29          62,094,332.24   1,014,770,741.60     -182,436.60 1,689,043,185.12
   Total assets         10,303,814,900.36 5,130,075,839.34 1,060,058,427.80 12,117,590,380.81 832,350,815.26 27,779,188,733.05
   Total liabilities     4,372,047,721.55 3,915,091,909.96            578,076,964.03      2,074,553.43    66,586,069.62 8,800,705,079.35


   (3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of each
   reportable segment, it should state the reasons

   Not applicable

   (4) Other explanation

   Nil


   7. Major transaction and events makes influence on investor’s decision

   Nil

   8. Other

   Nil


   XVII. Principal notes of financial statements of parent company
   1. Account receivable

   (1) Classification of account receivable

                                                                                                                                     Unit: yuan

                                           Ending balance                                                 Opening balance
                       Book balance          Bad debt provision                          Book balance       Bad debt provision
 Category
                                                            Provisi     Book value                                         Provisi   Book value
                   Amount          Ratio       Amount         on                        Amount      Ratio    Amount          on
                                                             ratio                                                          ratio
Account
receivable
with bad
                                                            100.00                                                         100.00
debt                9,996,116.39      0.70% 9,996,116.39                               11,107,123.51 1.11% 11,107,123.51
                                                                %                                                              %
provision
accrual on a
single basis
Including:
Account
receivable
with bad
debt            1,420,626,206.51   99.30% 2,294,051.81 0.16% 1,418,332,154.70 985,882,139.36 98.89% 3,099,860.14 0.31% 982,782,279.22
provision
accrual on
portfolio
Including:




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Including:
receivables
               1,275,194,085.44    89.13% 2,294,051.81 0.18% 1,272,900,033.63 836,329,626.26 83.89% 3,099,860.14 0.37% 833,229,766.12
from
customers
Receivables
from
internal          145,432,121.07   10.17%                          145,432,121.07 149,552,513.10 15.00%                               149,552,513.10
related
parties


                                                                                                    100.00
Total          1,430,622,322.90 100.00% 12,290,168.20 0.86% 1,418,332,154.70 996,989,262.87                14,206,983.65 1.42% 982,782,279.22
                                                                                                        %




   Bad debt provision accrual on single basis: 9,996,116.39 yuan

                                                                                                                                      Unit: yuan

                                                                                   Ending balance
                     Name
                                               Book balance         Bad debt provision        Provision ratio             Accrual causes
                                                                                                                      Have difficulty in
   BD bills                                        7,300,000.00             7,300,000.00                    100.00%
                                                                                                                      collection
   Changchun FAW Sihuan Engine                                                                                        Have difficulty in
                                                   1,475,731.65             1,475,731.65                    100.00%
   Manufacturing Co., Ltd                                                                                             collection
                                                                                                                      Have difficulty in
   Wuxi Kipor Machinery Co., Ltd                   1,220,384.74             1,220,384.74                    100.00%
                                                                                                                      collection
   Total                                            9,996,116.39            9,996,116.39               --                        --



   Bad debt provision accrual on portfolio: 2,294,051.81 yuan

                                                                                                                                      Unit: yuan

                                                                                Ending balance
                  Name
                                               Book balance                   Bad debt provision                      Provision ratio

   Within 6 months                                   1,268,573,282.52

   6 months to 1 year                                    3,445,113.75                        344,511.38                                 10.00%

   1-2 years                                               965,327.97                        193,065.59                                 20.00%

   2-3 years                                               756,477.26                        302,590.90                                 40.00%

   Over 3 years                                          1,453,883.94                      1,453,883.94                               100.00%

   Total                                             1,275,194,085.44                      2,294,051.81                     --
   If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
   to the disclosure of other receivables to disclose related information about bad-debt provisions:

   □ Applicable √ Not applicable
   By account age



                                                                                                                                      Unit: yuan



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                            Account age                                                         Ending balance

Within 1 year (including 1 year)                                                                                       1,417,450,517.34

Including: Within 6 months                                                                                             1,414,005,403.59

6 months to 1 year                                                                                                          3,445,113.75

1-2 years                                                                                                                    965,327.97

2-3 years                                                                                                                  9,532,208.91

Over 3 years                                                                                                               2,674,268.68

  3-4 years                                                                                                                2,674,268.68

Total                                                                                                                  1,430,622,322.90


(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:

                                                                                                                               Unit: yuan

                                                              Amount changed in the period
    Category          Opening balance                        Collected or                                               Ending balance
                                            Accrual                               Written-off               Other
                                                              reversal
Bad debt
                        14,206,983.65                            805,808.33         1,111,007.12                          12,290,168.20
provision
Total                   14,206,983.65                            805,808.33         1,111,007.12                          12,290,168.20

Important bad debt provision collected or switch back: nil


(3) Account receivable actual charge off in the Period

                                                                                                                               Unit: yuan

                                Item                                                            Write off    Amount

Fuzhou Haominxing Automobile components Co., Ltd.                                                                           1,111,007.12

Total                                                                                                                       1,111,007.12

Major charge-off for the major receivable: nil


(4) Top 5 receivables at ending balance by arrears party

                                                                                                                               Unit: yuan

                                    Ending balance of account         Ratio in total ending balance of      Ending balance of bad debt
               Name
                                           receivable                       account receivables                      reserve
RBCD                                              932,300,868.41                                65.17%                         59,766.11
Custom 1                                              76,170,106.50                              5.32%                       688,930.18
WFSC                                                  72,454,228.14                              5.06%
Robert Bosch                                          60,055,279.84                              4.20%                         72,611.24
Custom 2                                              44,648,627.27                              3.12%                        16,862.45
Total                                            1,185,629,110.16                               82.87%



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(5) Account receivable derecognition due to financial assets transfer

Nil


(6) Assets and liabilities resulted by account receivable transfer and continues involvement

Nil


2. Other account receivables

                                                                                                                    Unit: yuan

                      Item                               Ending balance                          Opening balance

Interest receivable                                                         88,888.89                              897,777.78

Dividend receivable                                                  466,859,940.06

Other account receivables                                            190,997,720.43                          196,437,936.85

Total                                                                657,946,549.38                          197,335,714.63

(1) Interest receivable

1) Category of interest receivable
                                                                                                                    Unit: yuan

                               Item                                   Ending balance                 Opening balance
Interest receivable of unified-borrowing & unified-lending                           88,888.89                     897,777.78
Total                                                                                88,888.89                     897,777.78


2) Significant overdue interest

Nil


3) Accrual of bad debt provision
□ Applicable   √ Not applicable


(2) Dividend receivable

1) Category of dividend receivable

                                                                                                                    Unit: yuan

        Item (or invested enterprise)                    Ending balance                          Opening balance
Zhonglian Electronics                                                198,800,000.00
RBCD                                                                 266,751,179.26
SDEC                                                                      1,077,970.80
Miracle Automation                                                         230,790.00
Total                                                                466,859,940.06


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2) Important dividend receivable with account age over one year

Nil


3) Accrual of bad debt provision

□ Applicable √ Not applicable


(3) Other account receivables

1) Other account receivables classification by nature

                                                                                                                              Unit: yuan

                    Nature                                Ending book balance                         Opening book balance
Staff loans and petty cash                                                     1,123,562.79                              483,650.21
Balance of related party in the consolidate
                                                                             188,746,521.72                          194,745,396.72
scope
Margin                                                                         1,230,340.00                            1,030,340.00
Other                                                                              7,280.00                              263,534.00
Total                                                                        191,107,704.51                          196,522,920.93


2) Accrual of bad debt provision

                                                                                                                              Unit: yuan

                                            Phase I                 Phase II                  Phase III
                                                              Expected credit losses Expected credit losses
        Bad debt provision           Expected credit losses   for the entire duration for the entire duration         Total
                                      over next 12 months         (without credit     (with credit impairment
                                                              impairment occurred)           occurred)
Balance on Jan. 1, 2021                          84,984.08                                                                   84,984.08
Balance of Jan. 1, 2021 in the
                                              ——                    ——                     ——                   ——
period
Current accrual                                  25,000.00                                                                   25,000.00
Balance on Jun. 30, 2021                        109,984.08                                                               109,984.08
Change of book balance of loss provision with amount has major changes in the period
□ Applicable    √ Not applicable
By account age

                                                                                                                              Unit: yuan

                              Account age                                                      Ending balance

Within 1 year (including 1 year)                                                                                     190,826,514.30

Including: Within 6 months                                                                                           190,676,514.30

         6 months to 1 year                                                                                              150,000.00



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1-2 years                                                                                                                200,080.00

2-3 years                                                                                                                 43,570.21

Over 3 years                                                                                                              37,540.00

  3-4 years                                                                                                               37,540.00

Total                                                                                                               191,107,704.51


3) Bad debt provision accrual, collected or switch back

Bad debt provision accrual in the period:

                                                                                                                          Unit: yuan

                                                             Amount changed in the period
      Category       Opening balance                         Collected or                                          Ending balance
                                            Accrual                             Written-off          Other
                                                              reversal
Bad debt
                            84,984.08          25,000.00                                                                 109,984.08
provision
Total                       84,984.08          25,000.00                                                                 109,984.08

Including the important bad debt provision switch back or collected in the period: nil


4) Other receivables actually written-off during the reporting period

Nil


5) Top 5 other receivables at ending balance by arrears party

                                                                                                                          Unit: yuan

                                                                                         Ratio in total ending
                                                                                                                 Ending balance of
        Enterprise              Nature              Ending balance       Account age      balance of other
                                                                                                                  bad debt reserve
                                                                                             receivables
                      Balance of related party in
WFLD                                                  100,000,000.00 Within 6 months                  52.33%
                      the consolidate scope
                      Balance of related party in
WFCA                                                   59,193,906.00 Within 6 months                  30.97%
                      the consolidate scope
                      Balance of related party in
WFMA                                                   17,552,615.72 Within 6 months                   9.18%
                      the consolidate scope
                      Balance of related party in
WFTT                                                   12,000,000.00 Within 6 months                   6.28%
                      the consolidate scope
Zhenkunxing
Industrial
                     Security deposit                   1,000,000.00 Within 6 months                   0.52%
Supermarket
(Shanghai) Co., Ltd.
Total                              --                 189,746,521.72                                  99.28%




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6) Other account receivables related to government grants

Nil


7) Other receivable for termination of confirmation due to the transfer of financial assets

Nil


8) The amount of assets and liabilities that are transferred other receivable and continued to be involved

Nil


3. Long-term equity investments

                                                                                                                        Unit: yuan

                                            Ending balance                                       Opening balance
           Item                                Depreciation                                        Depreciatio
                             Book balance                       Book value        Book balance                      Book value
                                                 reserves                                          n reserves
Investment for subsidiary   2,094,528,946.39                  2,094,528,946.39 1,978,302,303.40                  1,978,302,303.40
Investment for associates
                            4,099,379,129.39                  4,099,379,129.39 3,999,826,000.48                  3,999,826,000.48
and joint venture
Total                       6,193,908,075.78                  6,193,908,075.78 5,978,128,303.88                  5,978,128,303.88


(1) Investment for subsidiary

                                                                                                                        Unit: yuan

                                                      Changes in Current Period                                         Ending
  The invested     Opening balance                           Negative                              Ending balance     balance of
     entity         (book value)         Additional                    Provision for                (book value)     depreciation
                                                            Investmen                   Other
                                         Investment                   impairment loss                                  reserves
                                                                t
WFJN                  179,208,759.14        3,380,148.13                                            182,588,907.27
WFLD                  460,845,639.39        4,061,355.30                                            464,906,994.69
WFMA                  168,847,702.38        1,045,406.70                                            169,893,109.08
WFCA                  221,046,402.93           866,194.08                                           221,912,597.01
WFTR                    32,908,992.35          507,769.02                                            33,416,761.37
WFSC                    50,244,628.12          457,987.70                                            50,702,615.82
WFTT                  235,185,028.12        1,463,569.44                                            236,648,597.56
WFAM                    82,454,467.99                                                                82,454,467.99
WFDT                    53,887,039.61          179,212.62                                            54,066,252.23
SPV                   493,673,643.37    104,265,000.00                                              597,938,643.37
Total               1,978,302,303.40    116,226,642.99                                            2,094,528,946.39




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(2) Investment for associates and joint venture

                                                                                                                                    Unit: yuan

                                                           Current changes (+, -)                          Ending
                                                   Other                                                   balance
                          Additi Capit Investment compreh         Cash dividend Impai                         of
          Opening balance                                   Other                           Ending balance
                           onal    al   gain/loss  ensive           or profit   rment                      depreci
Enterprise (book value)                                    equity                     Other (book value)
                          invest reduc recognized income          announced to accru                        ation
                                                           change                                          reserve
                           ment tion under equity adjustme           issued       al
                                                     nt                                                       s

I. Joint venture
II. Associated enterprise

RBCD           2,687,524,679.53                633,637,962.50                      533,502,358.52                  2,787,660,283.51

Zhonglian
               1,237,548,856.31                178,295,216.97                      198,800,000.00                  1,217,044,073.28
Electronics

Weifu
Precision            74,752,464.64              19,922,307.96                                                        94,674,772.60
Machinery

Subtotal       3,999,826,000.48                831,855,487.43                      732,302,358.52                  4,099,379,129.39

Total          3,999,826,000.48                831,855,487.43                      732,302,358.52                  4,099,379,129.39


(3) Other explanation

Nil


4. Operating income and cost

                                                                                                                                    Unit: yuan

                                                Current period                                             Last Period
              Item
                                      Income                        Cost                        Income                       Cost
Main business                        3,010,827,415.47            2,214,544,926.38               2,175,655,866.58          1,548,552,431.71
Other business                        210,116,060.96               188,982,608.49                160,606,506.50              137,936,247.87
Total                                3,220,943,476.43            2,403,527,534.87               2,336,262,373.08          1,686,488,679.58


5. Investment income

                                                                                                                                    Unit: yuan

                         Item                                   Current period                                 Last Period
Investment income from holding transaction
                                                                                 3,468,760.80
financial asset
Investment income in subsidiaries                                             55,881,129.25                                   62,995,075.18
Investment income in joint ventures and
                                                                             831,855,487.43                                  708,709,791.17
associated enterprises
Investment income of financial products                                      137,428,400.49                                  136,202,392.15
Total                                                                      1,028,633,777.97                                  907,907,258.50


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6. Other

Nil


XVIII. Supplementary Information
1. Current non-recurring gains/losses

√ Applicable □ Not applicable

                                                                                                                                Unit: yuan

                                            Item                                                 Amount                   Note
Gains/losses from the disposal of non-current asset                                                2,301,315.63
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         23,433,211.68
enterprise’s business)
Held transaction financial asset, gains/losses of changes of fair values from transaction
financial liabilities, and investment gains from disposal of transaction financial asset,
                                                                                                 -91,729,334.10
transaction financial liabilities and financial asset available for sales, exclude the
effective hedging business relevant with normal operations of the Company
Other non-operating income and expenditure except for the aforementioned items                       261,828.55
Less: Impact on income tax                                                                        -9,604,873.99
      Impact on minority shareholders’ equity                                                       702,962.52
Total                                                                                            -56,831,066.77            --

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. ROE and earnings per share(EPS)

                                                                                               Earnings per share(EPS)
                                                                 Weighted average
                 Profits during report period                                     Basic earnings per share Diluted earnings per
                                                                      ROE
                                                                                       (RMB/Share)            share (RMB/Share)
Net profits belong to common stock stockholders of the
                                                                              8.72%                     1.66                        1.66
Company
Net profits belong to common stock stockholders of the
                                                                              9.02%                     1.72                        1.72
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




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(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable


(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute

Nil




                                                          BOD Of Weifu High-Technology Group Co., Ltd.




                                                                       Chairman:

                                                                                        Wang Xiaodong

                                                                                         24 August 2021




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