WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
Semi-Annual Financial Report 2022
August 2022
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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, 2022
Unit: RMB/CNY
Item June 30, 2022 January 1, 2022
Current assets:
Monetary funds 2,357,955,196.57 1,896,063,265.69
Settlement provisions
Capital lent
Trading financial assets 3,783,299,041.48 6,076,436,069.42
Derivative financial assets
Note receivable 990,397,272.62 1,116,550,186.21
Account receivable 4,545,410,759.88 2,053,800,293.77
Receivable financing 875,577,584.80 713,017,014.50
Accounts paid in advance 3,128,509,070.58 178,059,249.99
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 603,753,032.49 17,908,078.54
Including: Interest receivable
Dividend receivable 577,318,855.11
Buying back the sale of financial assets
Inventories 2,167,754,348.61 3,445,396,375.09
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 52,225,842.73 220,320,922.50
Total current assets 18,504,882,149.76 15,717,551,455.71
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 5,582,235,398.43 5,717,944,788.12
2
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Investment in other equity instrument 677,790,690.00 285,048,000.00
Other non-current financial assets 1,804,481,411.00 1,690,795,178.00
Investment real estate 18,653,199.32 19,387,746.56
Fixed assets 2,954,329,704.27 2,932,210,452.51
Construction in progress 500,684,157.53 387,429,933.08
Productive biological asset
Oil and gas asset
Right-of-use assets 28,757,850.60 23,148,405.58
Intangible assets 429,178,519.56 440,593,119.82
Expense on Research and Development
Goodwill 224,425,945.78 231,255,015.75
Long-term expenses to be apportioned 11,947,263.62 15,304,783.57
Deferred income tax asset 247,248,306.68 242,248,194.57
Other non-current asset 417,664,761.50 267,941,354.57
Total non-current asset 12,897,397,208.29 12,253,306,972.13
Total assets 31,402,279,358.05 27,970,858,427.84
Current liabilities:
Short-term loans 4,187,682,800.94 1,437,958,206.55
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 1,603,408,581.52 1,760,032,216.30
Account payable 4,244,994,572.77 3,206,653,702.59
Accounts received in advance 6,950,948.17 2,854,518.96
Contractual liability 93,104,665.28 136,427,636.39
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 244,436,555.93 339,888,502.70
Taxes payable 110,831,058.87 40,105,648.88
Other account payable 468,263,626.36 359,905,317.46
Including: Interest payable 5,621.94 6,184.14
Dividend payable 165,975,264.00 25,671,100.00
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 31,696,560.71 34,088,773.68
Other current liabilities 169,153,621.43 212,969,271.55
Total current liabilities 11,160,522,991.98 7,530,883,795.06
Non-current liabilities:
Insurance contract reserve
Long-term loans 200,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 21,504,518.33 15,795,469.25
3
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Long-term account payable 32,015,082.11 32,015,082.11
Long-term wages payable 108,311,923.19 108,311,923.19
Accrual liability
Deferred income 280,016,332.08 298,052,867.56
Deferred income tax liabilities 20,805,712.81 23,097,535.20
Other non-current liabilities
Total non-current liabilities 662,653,568.52 477,272,877.31
Total liabilities 11,823,176,560.50 8,008,156,672.37
Owner’s equity:
Share capital 1,008,659,570.00 1,008,659,570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 3,406,077,313.83 3,371,344,172.82
Less: Inventory shares 339,452,454.81 270,249,797.74
Other comprehensive income -49,425,996.76 -36,746,344.60
Reasonable reserve 1,715,465.25 712,215.31
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 14,438,490,420.01 14,814,787,377.86
Total owner’ s equity attributable to parent company 18,976,164,813.52 19,398,607,689.65
Minority interests 602,937,984.03 564,094,065.82
Total owner’ s equity 19,579,102,797.55 19,962,701,755.47
Total liabilities and owner’ s equity 31,402,279,358.05 27,970,858,427.84
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: RMB/CNY
Item June 30, 2022 January 1, 2022
Current assets:
Monetary funds 1,161,936,356.09 1,002,808,546.46
Trading financial assets 3,438,370,002.19 5,493,703,374.82
Derivative financial assets
Note receivable 216,245,787.47 303,726,372.69
Account receivable 925,360,503.38 536,957,890.22
Receivable financing
Accounts paid in advance 95,671,538.79 93,419,268.82
Other account receivable 3,837,362,710.21 204,125,517.63
Including: Interest receivable 102,777.78 113,055.56
Dividend receivable 560,425,376.21 26,718,900.00
Inventories 612,225,270.17 1,076,094,722.15
Contractual assets
Assets held for sale
Non-current assets maturing within one year
4
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Other current assets 7,467,232.94 149,352,872.77
Total current assets 10,294,639,401.24 8,860,188,565.56
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 6,840,345,524.26 6,867,282,228.56
Investment in other equity instrument 601,850,690.00 209,108,000.00
Other non-current financial assets 1,804,481,411.00 1,690,795,178.00
Investment real estate
Fixed assets 1,794,069,819.22 1,786,089,596.76
Construction in progress 311,929,452.27 239,183,999.25
Productive biological assets
Oil and natural gas assets
Right-of-use assets 8,182,385.14 1,240,879.96
Intangible assets 211,090,286.11 209,952,168.75
Research and development costs
Goodwill
Long-term deferred expenses 274,190.98 348,970.34
Deferred income tax assets 90,660,050.91 85,012,991.24
Other non-current assets 321,480,754.07 185,646,711.53
Total non-current assets 11,984,364,563.96 11,274,660,724.39
Total assets 22,279,003,965.20 20,134,849,289.95
Current liabilities
Short-term borrowings 2,566,129,633.33 272,578,883.63
Trading financial liability
Derivative financial liability
Notes payable 445,310,209.74 569,405,391.94
Account payable 876,228,070.03 1,012,390,712.80
Accounts received in advance
Contract liability 6,849,874.49 7,879,319.15
Wage payable 158,053,645.19 220,719,432.58
Taxes payable 19,993,113.26 12,427,327.61
Other accounts payable 1,311,764,098.96 392,455,373.80
Including: Interest payable 117,777.78
Dividend payable 165,975,264.00
Liability held for sale
Non-current liabilities due within one year 462,484.41 462,484.41
Other current liabilities 130,116,125.31 143,935,332.78
Total current liabilities 5,514,907,254.72 2,632,254,258.70
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability 7,993,740.15 1,003,106.55
Long-term account payable
Long term employee compensation payable 103,482,333.50 103,482,333.50
5
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Accrued liabilities
Deferred income 253,285,007.42 265,509,545.34
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 364,761,081.07 369,994,985.39
Total liabilities 5,879,668,335.79 3,002,249,244.09
Owners’ equity:
Share capital 1,008,659,570.00 1,008,659,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 3,522,974,136.55 3,487,154,855.59
Less: Inventory shares 339,452,454.81 270,249,797.74
Other comprehensive income
Special reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 11,697,053,881.67 12,396,934,922.01
Total owner’s equity 16,399,335,629.41 17,132,600,045.86
Total liabilities and owner’s equity 22,279,003,965.20 20,134,849,289.95
3. Consolidated Profit Statement
Unit: RMB/CNY
Item 2022 semi-annual 2021 semi-annual
I. Total operating income 7,321,835,360.98 9,037,691,756.24
Including: Operating income 7,321,835,360.98 9,037,691,756.24
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 6,729,087,452.78 8,179,064,974.32
Including: Operating cost 6,024,571,742.71 7,497,917,157.07
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 28,877,421.78 38,209,494.32
Sales expense 79,020,592.43 111,193,615.56
Administrative expense 277,212,254.79 266,226,378.32
R&D expense 289,631,376.50 249,583,255.99
Financial expense 29,774,064.57 15,935,073.06
Including: Interest expenses 34,275,262.65 14,244,003.27
Interest income 13,927,929.36 16,673,615.70
Add: other income 26,095,621.93 23,433,211.68
Investment income (Loss is listed with “-”) 928,792,343.97 1,105,771,532.34
Including: Investment income on affiliated company and 823,400,731.10 962,736,510.68
6
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
joint venture
The termination of income recognition for financial
assets measured by amortized cost(Loss is listed with “-”) -680,357.44 -609,970.51
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -74,432,928.14 -86,131,772.46
Loss of credit impairment (Loss is listed with “-”) 2,083,427.81 6,750,336.12
Losses of devaluation of asset (Loss is listed with “-”) -104,219,783.98 -103,997,387.44
Income from assets disposal (Loss is listed with “-”) 1,890,279.95 2,926,586.82
III. Operating profit (Loss is listed with “-”) 1,372,956,869.74 1,807,379,288.98
Add: Non-operating income 218,285.29 488,184.66
Less: Non-operating expense 2,196,565.87 851,627.30
IV. Total profit (Loss is listed with “-”) 1,370,978,589.16 1,807,015,846.34
Less: Income tax expense 100,553,787.21 117,972,661.22
V. Net profit (Net loss is listed with “-”) 1,270,424,801.95 1,689,043,185.12
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 1,270,424,801.95 1,689,043,185.12
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 1,232,762,710.95 1,645,389,487.32
2.Minority shareholders’ gains and losses 37,662,091.00 43,653,697.80
VI. Net after-tax of other comprehensive income -12,679,652.16 -18,712,800.55
Net after-tax of other comprehensive income attributable to owners
of parent company -12,679,652.16 -18,712,800.55
(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 -12,679,652.16 -18,712,800.55
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 -12,679,652.16 -18,712,800.55
7.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 1,257,745,149.79 1,670,330,384.57
Total comprehensive income attributable to owners of parent
Company 1,220,083,058.79 1,626,676,686.77
Total comprehensive income attributable to minority shareholders 37,662,091.00 43,653,697.80
VIII. Earnings per share:
(i) Basic earnings per share 1.25 1.66
(ii) Diluted earnings per share 1.25 1.66
7
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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: RMB/CNY
Item 2022 semi-annual 2021 semi-annual
I. Operating income 2,411,189,208.04 3,220,943,476.43
Less: Operating cost 1,919,986,159.54 2,403,527,534.87
Taxes and surcharge 13,501,778.32 21,834,137.85
Sales expenses 14,392,542.42 17,546,893.57
Administration expenses 144,366,869.06 135,426,334.91
R&D expenses 115,694,064.37 87,747,468.92
Financial expenses -8,310,144.29 -7,223,028.80
Including: interest expenses 18,380,946.47 3,350,273.60
Interest income 31,657,392.66 13,656,977.09
Add: other income 15,713,320.73 15,396,596.15
Investment income (Loss is listed with “-”) 835,209,662.03 1,028,633,777.97
Including: Investment income on affiliated Company and
joint venture 734,429,287.99 831,855,487.43
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 “-”) -74,417,034.85 -86,218,789.02
Loss of credit impairment (Loss is listed with “-”) 477,241.11 780,808.33
Losses of devaluation of asset (Loss is listed with “-”) -45,999,971.02 -10,358,756.04
Income on disposal of assets (Loss is listed with “-”) 146,113.46 723,623.73
II. Operating profit (Loss is listed with “-”) 942,687,270.08 1,511,041,396.23
Add: Non-operating income 138,467.56 56,000.29
Less: Non-operating expense 613,619.53 575,906.72
III. Total Profit (Loss is listed with “-”) 942,212,118.11 1,510,521,489.80
Less: Income tax 33,033,489.65 76,926,523.99
IV. Net profit (Net loss is listed with “-”) 909,178,628.46 1,433,594,965.81
(i)continuous operating net profit (net loss listed with ‘-”) 909,178,628.46 1,433,594,965.81
(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
8
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 909,178,628.46 1,433,594,965.81
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item 2022 semi-annual 2021 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 8,608,596,903.67 7,104,973,474.71
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 232,035,625.20 22,377,551.77
Other cash received concerning operating activities 22,438,681.72 23,837,717.02
Subtotal of cash inflow arising from operating activities 8,863,071,210.59 7,151,188,743.50
Cash paid for purchasing commodities and receiving labor service 10,123,953,273.86 5,800,001,521.45
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 736,897,874.74 769,474,843.18
Taxes paid 223,299,890.76 241,303,901.65
Other cash paid concerning operating activities 272,902,216.12 260,216,868.05
Subtotal of cash outflow arising from operating activities 11,357,053,255.48 7,070,997,134.33
Net cash flows arising from operating activities -2,493,982,044.89 80,191,609.17
II. Cash flows arising from investing activities:
Cash received from recovering investment 6,783,202,982.62 9,674,956,210.22
Cash received from investment income 510,529,403.51 476,145,091.90
Net cash received from disposal of fixed, intangible and other
long-term assets 7,007,242.74 7,301,988.55
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 1,108,314.69
9
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Subtotal of cash inflow from investing activities 7,300,739,628.87 10,159,511,605.36
Cash paid for purchasing fixed, intangible and other long-term
assets 622,264,336.12 312,048,305.49
Cash paid for investment 5,121,895,293.87 8,896,332,579.38
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 5,744,159,629.99 9,208,380,884.87
Net cash flows arising from investing activities 1,556,579,998.88 951,130,720.49
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 4,061,893,674.46 1,107,957,631.62
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 4,061,893,674.46 1,107,957,631.62
Cash paid for settling debts 1,122,521,453.43 212,778,637.77
Cash paid for dividend and profit distributing or interest paying 1,499,815,013.36 1,385,111,066.13
Including: Dividend and profit of minority shareholder paid by
subsidiaries 25,671,100.00 13,970,282.31
Other cash paid concerning financing activities 100,866,543.83 6,919,876.01
Subtotal of cash outflow from financing activities 2,723,203,010.62 1,604,809,579.91
Net cash flows arising from financing activities 1,338,690,663.84 -496,851,948.29
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate -4,522,251.76 -3,408,171.79
V. Net increase of cash and cash equivalents 396,766,366.07 531,062,209.58
Add: Balance of cash and cash equivalents at the period -begin 1,094,018,936.73 944,946,018.70
VI. Balance of cash and cash equivalents at the period -end 1,490,785,302.80 1,476,008,228.28
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item 2022 semi-annual 2021 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 2,206,683,069.38 3,242,751,680.23
Write-back of tax received 186,226,813.27
Other cash received concerning operating activities 13,662,628.42 12,609,442.48
Subtotal of cash inflow arising from operating activities 2,406,572,511.07 3,255,361,122.71
Cash paid for purchasing commodities and receiving labor
service 1,469,241,728.46 1,994,221,184.67
Cash paid to/for staff and workers 389,448,409.74 437,457,769.95
Taxes paid 138,600,504.19 113,149,540.45
Other cash paid concerning operating activities 94,078,994.56 73,953,894.64
Subtotal of cash outflow arising from operating activities 2,091,369,636.95 2,618,782,389.71
Net cash flows arising from operating activities 315,202,874.12 636,578,733.00
II. Cash flows arising from investing activities:
Cash received from recovering investment 4,401,242,982.62 7,526,445,210.22
Cash received from investment income 515,008,090.22 467,905,359.02
Net cash received from disposal of fixed, intangible and other
long-term assets 2,092,031.77 4,642,596.78
Net cash received from disposal of subsidiaries and other units
10
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Other cash received concerning investing activities 333,677,757.87 126,059,237.40
Subtotal of cash inflow from investing activities 5,252,020,862.48 8,125,052,403.42
Cash paid for purchasing fixed, intangible and other long-term
assets 427,352,475.87 168,425,236.10
Cash paid for investment 3,082,493,337.87 6,901,181,670.00
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 3,408,840,000.00 135,221,125.00
Subtotal of cash outflow from investing activities 6,918,685,813.74 7,204,828,031.10
Net cash flows arising from investing activities -1,666,664,951.26 920,224,372.32
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 2,618,386,800.00 276,862,000.00
Other cash received concerning financing activities 783,729,243.68 30,000,000.00
Subtotal of cash inflow from financing activities 3,402,116,043.68 306,862,000.00
Cash paid for settling debts 326,483,000.00 102,000,000.00
Cash paid for dividend and profit distributing or interest paying 1,459,828,775.80 1,361,089,903.10
Other cash paid concerning financing activities 100,720,981.37 48,290.60
Subtotal of cash outflow from financing activities 1,887,032,757.17 1,463,138,193.70
Net cash flows arising from financing activities 1,515,083,286.51 -1,156,276,193.70
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate -3,140,478.44 -1,128,178.25
V. Net increase of cash and cash equivalents 160,480,730.93 399,398,733.37
Add: Balance of cash and cash equivalents at the period -begin 488,417,498.83 651,188,544.53
VI. Balance of cash and cash equivalents at the period -end 648,898,229.76 1,050,587,277.90
11
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
Unit: RMB/CNY
2022 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument Provis Total
Item Pref Perpet O Less: Other Reasona Minority
Share Capital Surplus ion of owners’
erre ual t Inventory comprehensive ble Retained profit Other Subtotal interests
capital reserve reserve genera equity
d capital h shares income reserve
l risk
stoc securit e
k ies r
I. Balance at
1,008,65 3,371,34 270,249,79 712,215. 510,100,496 14,814,787,377. 19,398,607,689. 564,094,065 19,962,701,
the end of -36,746,344.60
the last year 9,570.00 4,172.82 7.74 31 .00 86 65 .82 755.47
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Enterprise
combine
under the
same
control
Other
12
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
II. Balance
at the 1,008,65 3,371,34 270,249,79 712,215. 510,100,496 14,814,787,377. 19,398,607,689. 564,094,065 19,962,701,
beginning of -36,746,344.60
9,570.00 4,172.82 7.74 31 .00 86 65 .82 755.47
this year
III.
Increase/
Decrease in -
34,733,1 69,202,657. 1,003,24 38,843,918.
this year -12,679,652.16 -376,296,957.85 -422,442,876.13 383,598,957
(Decrease is 41.01 07 9.94 21
.92
listed with
“-”)
(i) Total
1,232,762,710.9 1,220,083,058.7 37,662,091. 1,257,745,1
comprehens -12,679,652.16
ive income 5 9 00 49.79
(ii) Owners’ -
devoted and 34,733,1 69,202,657. 1,086,139.9
decreased -34,469,516.06 33,383,376.
41.01 07 2
capital 14
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned
into owners 34,733,1 1,086,139.9 35,819,280.
equity with 34,733,141.01
41.01 2 93
share-based
payment
-
69,202,657.
4. Other -69,202,657.07 69,202,657.
07
07
13
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
- - -
(III) Profit
distribution 1,609,059,668.8 1,609,059,668.8 1,609,059,6
0 0 68.80
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution - - -
for owners
(or 1,609,059,668.8 1,609,059,668.8 1,609,059,6
shareholders 0 0 68.80
)
4. Other
(IV)
Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital
(share
capital)
2. Surplus
reserves
conversed to
capital
(share
14
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
capital)
3.
Remedying
loss with
surplus
reserve
4．Carry-
over
retained
earnings
from the
defined
benefit
plans
5．Carry-
over
retained
earnings
from other
comprehens
ive income
6. Other
(V)
1,003,24 1,098,937.2
Reasonable 1,003,249.94 95,687.29
reserve 9.94 3
1.
Withdrawal 13,239,4 1,346,071.8 14,585,537.
13,239,465.25
in the report 65.25 6 11
period
2. Usage in
12,236,2 1,250,384.5 13,486,599.
the report 12,236,215.31
period 15.31 7 88
15
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(VI)Others
IV. Balance
at the end of 1,008,65 3,406,07 339,452,45 1,715,46 510,100,496 14,438,490,420. 18,976,164,813. 602,937,984 19,579,102,
the report -49,425,996.76
9,570.00 7,313.83 4.81 5.25 .00 01 52 .03 797.55
period
Last Period
Unit: RMB/CNY
2021 semi-annual
Owners’ equity attributable to the parent Company
Other
equity
instrument
Pe
rp
et
Item Pr Less: Other Provision Minority Total owners’
Share ua Capital Reasonabl Surplus Othe
ef Inventory comprehens of general Retained profit Subtotal interests equity
capital l reserve e reserve reserve r
err Ot shares ive income risk
ca
ed he
pit
st r
al
oc
se
k
cu
rit
ies
I. Balance
at the end 1,008,950, 3,294,242, 303,627,977 13,916,619. 2,333,490. 510,100,496 13,756,102,424. 18,282,017,990. 512,447,908 18,794,465,899.
of the last 570.00 368.28 .74 47 03 .00 62 66 .36 02
year
Add:
Changes
of
accountin
g policy
16
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Error
correction
of the last
period
Enterprise
combine
under the
same
control
Other
II.
Balance at
the 1,008,950, 3,294,242, 303,627,977 13,916,619. 2,333,490. 510,100,496 13,756,102,424. 18,282,017,990. 512,447,908 18,794,465,899.
beginning 570.00 368.28 .74 47 03 .00 62 66 .36 02
of this
year
III.
Increase/
Decrease
-
in this 37,351,06 194,126.9 30,900,981.
year 18,712,800. 134,284,380.68 153,116,773.47 184,017,754.68
6.35 9 21
(Decrease 55
is listed
with “-”)
(i) Total
-
comprehe 1,645,389,487.3 1,626,676,686.7 43,653,697. 1,670,330,384.5
nsive 18,712,800.
2 7 80 7
income 55
(ii)
Owners’
devoted 37,351,06 1,174,655.4
and 37,351,066.35 38,525,721.77
6.35 2
decreased
capital
17
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
1.Commo
n shares
invested
by
sharehold
ers
2. Capital
invested
by holders
of other
equity
instrument
s
3. Amount
reckoned
into
owners
37,351,06 1,174,655.4
equity 37,351,066.35 38,525,721.77
with 6.35 2
share-
based
payment
4. Other
(III) Profit - - - -
distributio 1,513,341,439.5 1,513,341,439.5 13,970,282. 1,527,311,721.8
n 0 0 31 1
1.
Withdraw
al of
surplus
reserves
2.
Withdraw
al of
general
risk
provisions
18
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
3.
Distributi
- - - -
on for
owners (or 1,513,341,439.5 1,513,341,439.5 13,970,282. 1,527,311,721.8
sharehold 0 0 31 1
ers)
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.
Remedyin
g loss
with
surplus
reserve
4．Carry-
over
retained
earnings
from the
defined
benefit
plans
19
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
5．Carry-
over
retained
earnings
from other
comprehe
nsive
income
6. Other
(V)
194,126.9
Reasonabl 194,126.99 42,910.30 237,037.29
e reserve 9
1.
Withdraw
12,481,92 1,203,727.4
al in the 12,481,928.66 13,685,656.08
report 8.66 2
period
2. Usage
in the 12,287,80 1,160,817.1
12,287,801.67 13,448,618.79
report 1.67 2
period
(VI)Other
s 2,236,332.86 2,236,332.86 2,236,332.86
IV.
Balance at -
1,008,950, 3,331,593, 303,627,977 2,527,617. 510,100,496 13,890,386,805. 18,435,134,764. 543,348,889 18,978,483,653.
the end of 4,796,181.0
the report 570.00 434.63 .74 02 .00 30 13 .57 70
8
period
20
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
Unit: RMB/CNY
2022 semi-annual
Other equity
Other
instrument
compr
Item Pref O
Share Perpetua Capital public Less: Inventory ehensi Reasonable Total owners’
erre t Surplus reserve Retained profit Other
capital l capital reserve shares ve reserve equity
d h
securitie incom
stoc e
s e
k r
I. Balance at the
1,008,659, 3,487,154,855.5 12,396,934,922.0 17,132,600,045.8
end of the last 270,249,797.74 0.00 510,100,496.00
year 570.00 9 1 6
Add:
Changes of
accounting policy
Error
correction of the
last period
Other
II. Balance at the
1,008,659, 3,487,154,855.5 12,396,934,922.0 17,132,600,045.8
beginning of this 270,249,797.74 0.00 510,100,496.00
year 570.00 9 1 6
III. Increase/
Decrease in this
year (Decrease is 35,819,280.96 69,202,657.07 -699,881,040.34 -733,264,416.45
listed with “-”)
(i) Total
comprehensive 909,178,628.46 909,178,628.46
income
(ii) Owners’
devoted and 35,819,280.96 69,202,657.07 -33,383,376.11
decreased capital
1.Common shares
invested by
shareholders
2. Capital
invested by
holders of other
equity
instruments
21
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
3. Amount
reckoned into
owners equity 35,819,280.96 35,819,280.96
with share-based
payment
4. Other 69,202,657.07 -69,202,657.07
(III) Profit
distribution -1,609,059,668.80 -1,609,059,668.80
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or -1,609,059,668.80 -1,609,059,668.80
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．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 report period 3,366,170.40 3,366,170.40
22
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
2. Usage in the
report period 3,366,170.40 3,366,170.40
(VI)Others
IV. Balance at the
1,008,659, 3,522,974,136.5 16,399,335,629.4
end of the report 339,452,454.81 0.00 510,100,496.00 11,697,053,881.67
period 570.00 5 1
Last period
Unit: RMB/CNY
2021 semi-annual
Other equity
instrument
Other
Pr Perp
compr
Item ef etual O
Capital public Less: Inventory ehensi Reasonable
Share capital err capit t Surplus reserve Retained profit Other Total owners’ equity
reserve shares ve reserve
ed al h
incom
st secu e
e
oc ritie r
k s
I. Balance at
1,008,950,570.0
the end of the 3,407,732,016.61 303,627,977.74 0.00 510,100,496.00 11,698,982,965.62 16,322,138,070.49
last year 0
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
1,008,950,570.0
the beginning 3,407,732,016.61 303,627,977.74 0.00 510,100,496.00 11,698,982,965.62 16,322,138,070.49
of this year 0
III. Increase/
Decrease in this
year (Decrease 38,525,721.77 -77,510,140.83 -38,984,419.06
is listed with
“-”)
(i) Total
comprehensive 1,433,594,965.81 1,433,594,965.81
income
23
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(ii) Owners’
devoted and
decreased 38,525,721.77 38,525,721.77
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 38,525,721.77 38,525,721.77
with 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 (or -1,513,341,439.50 -1,513,341,439.50
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
24
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
3,218,208.9
in the report 3,218,208.90
period 0
2. Usage in the 3,218,208.9
3,218,208.90
report period 0
(VI)Others 2,236,332.86 2,236,332.86
IV. Balance at
1,008,950,570.0
the end of the 3,446,257,738.38 303,627,977.74 0.00 510,100,496.00 11,621,472,824.79 16,283,153,651.43
report period 0
25
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
III. Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu High-
Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company
of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for Industry &
Commerce in October 1992. The original share capital of the Company totaled 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 of 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 conditions, the scheme
has been implemented on April 5, 2006.
26
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 112,858,000 yuan, and the registered capital after
change was 680,133,995 yuan. 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 1,020,200,992 yuan 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.
After deliberation and approved by the 5th session of 10th BOD for year of 2021, the 291,000 restricted shares are
buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The
cancellation of the above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December
20, 2021; the paid-in capital (equity) of the Company comes to 1,008,659,570.00 yuan after changed.
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-massesDepartment, Finance Department, Purchase Department,Manufacturing Quality
Department, MS (Mechanical System) division, AC(Automotive Components) divisionand DS (Diesel System )
27
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
division, etc. and subsidiaries such as WUXI WEIFU LIDA CATALYTIC CONVERTER CO., LTD, NANJING
WFJN 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), automotive 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, automotive components,
mufflers, purifiers and fuel cell components etc.
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company were approved by the Board of Directors for reporting dated August 23, 2022.
5. Scope of consolidate financial statement
Shareholding ratio Registered
(%) Proportion capital Statement
Short name of
Name of subsidiary of votes (in 10 Business scope consolidate
subsidiary Directly Indirectly (%) thousand (Y/N)
yuan)
Internal-
NANJING WEIFU JINNING CO., LTD. WFJN 80.00 -- 80.00 34,628.70 combustion engine Y
accessories
WUXI WEIFU LIDA CATALYTIC CONVERTER Purifier and
WFLD 94.81 -- 94.81 50,259.63 Y
CO., LTD. muffler
Internal-
WUXI WEIFU MASHAN FUEL INJECTION
WFMA 100.00 -- 100.00 16,500 combustion engine Y
EQUIPMENT CO., LTD.
accessories
Internal-
WUXI WEIFU CHANGAN CO.,LTD. WFCA 100.00 -- 100.00 21,000 combustion engine Y
accessories
WUXI WEIFU INTERNATIONA L TRADE
WFTR 100.00 -- 100.00 3,000 Trade Y
CO.,LTD.
Internal-
WUXI WEIFU SCHMITTER POWERTRAIN
WFSC 66.00 -- 66.00 7,600 combustion engine Y
COMPONENTS CO.,LTD.
accessories
Internal-
NINGBO WEIFU TIANLI TURBOCHA RGING
WFTT 98.83 1.17 100.00 11,136 combustion engine Y
TECHNOLOGY CO.,LTD.
accessories
WUXI WEIFU AUTOCAM PRECISION Automotive
WFAM 51.00 -- 51.00 USD2,110 Y
MACHINERY CO.,LTD. components
WUXI WEIFU LIDA CATALYTIC CONVERTER WFLD Purifier and
-- 60.00 60.00 1,000 Y
(WUHAN) CO., LTD. (WUHAN) muffler
Weifu Lida (Chongqing) Automotive components Co., WFLD Purifier and
-- 100.00 100.00 5,000 Y
Ltd. (Chongqing) muffler
Nanchang Weifu Lida Automotive Components Co., WFLD Purifier and
-- 100.00 100.00 5,000 Y
Ltd. (Nanchang) muffler
WUXI WEIFU AUTOSMART SEATING SYSTEM
WFAS -- 66.00 66.00 10,000 Smart car device Y
CO., LTD.
28
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
WUXI WEIFU E-DRIVE TECHNOLOGIES CO.,
WFDT 80.00 -- 80.00 USD2,000 Wheel motor Y
LTD.
Weifu Holding ApS SPV 100.00 -- 100.00 DKK2,425 Investment Y
Fuel cell
IRD Fuel Cells A/S IRD -- 100.00 100.00 DKK10,108 Y
components
Fuel cell
IRD FUEL CELLS LLC IRD America -- 100.00 100.00 USD651.91 Y
components
Fuel cell
Borit NV Borit -- 100.00 100.00 EUR1180.96 Y
components
Fuel cell
Borit Inc. Borit America -- 100.00 100.00 USD0.1 Y
components
Fuel cell
Wuxi Weifu Qinglong Power Technology Co., Ltd. WFFC 45.00 30.00 75.00 50,000 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.
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, automotive components, mufflers, purifiers and fuel cell components etc., in line with the actual
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
29
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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
30
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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"
31
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
transactions met one or more of the following situations, the transactions shall normally be accounted for as a bundle
of transactions: ①The transactions are entered into after considering the mutual consequences of each individual
transaction; ② The transactions need to be considered as a whole in order to achieve a deal in commercial
sense;③The occurrence of an individual transaction depends on the occurrence of one or more individual
transactions in the series; ④ The result of an individual transaction is not economical, but it would be economical
after taking into account of other transactions in the series. When the transactions are not regarded as a bundle of
transactions, the individual transactions shall be accounted as “disposal of a portion of an interest in a subsidiary
which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary which lead to loss of
control”. When the transactions are regarded as a bundle of transactions, the transactions shall be accounted as a
single disposal transaction; however, the difference between the consideration received from disposal and the share
of net assets disposed in each individual transactions before loss of control shall be recognized as other
comprehensive income, and reclassified as profit or loss arising from the loss of control when control is lost.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations.
The Company confirms the following items related to the share of interests in its joint operations, and in accordance
with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
32
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(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 amountin accordance with the middle rate of the market exchange rate published by the
People's Bank of China on the transaction date. The balance between the recording currency amount converted
according toexchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. There into, theexchange gains or lossesoccurred 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 itemsmeasured withthe historical costs are convertedin
accordance with the middle rate of the market exchange rate published by the People's Bank of China on the
transaction datewithout changing its original recording currency amount; the foreign currency non-monetary
itemsmeasured with the fair value are convertedin 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.
33
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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;
②the 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 liabilitie s
are substantially different from the contract terms, terminated the recognition of the existing financial liabilities and
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.
34
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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; and
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.
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; and
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
35
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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
36
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
liabilities. The company divides the input values used by valuation techniques into the following levels and uses
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’ investmentetc. 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 receivable1: bank acceptance
Note receivable2: trade acceptance
B - Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
C- Receivable financing
Receivable financing 1: bank acceptance
Receivable financing 2: trade acceptance
D- Other account receivables
37
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 Companymeasures 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 Companymeasures 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 offinancial 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 offinancial 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
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
38
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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
39
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.Account receivable 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.
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
40
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 Contractual liability 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 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
41
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 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
42
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 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
43
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.)
②Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-
monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out; otherwise
determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at fair
value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on 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,
44
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.
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
45
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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
46
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 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.Fix 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
Years of depreciation Scrap value rate Yearly depreciation
Category Depreciation method
（year） （%） 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
(3) Recognition basis, valuation and depreciation method for financial lease assets
Not applicable
47
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(4) The impairment test method and provision for impairment of fixed assets
The impairment test method and provision for impairment of fixed assets found more in 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 processis 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:
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
48
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
The right-of-use asset refers to the right of the Company, as the lessee, to use the leased asset during the lease term.
On the commencement date of the lease term, the Company recognizes the right-of-use assets for leases other than
short-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. The cost includes
the initial measurement amount of the lease liability; the lease payments made on or before the commencement date
of the lease term, deduct the relevant amount of the lease incentive already enjoyedif there is a lease incentive;the
initial direct expenses incurred by the lessee; the cost expected to be incurred by the lessee to dismantle and remove
the leased assets, restore the site where the leased assets locate, or restore the leased assets to the condition agreed
upon in the lease terms, but this does not includethe cost attributable to the production of inventory.
The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it can be reasonably
determined that the ownership of the leased asset can be obtained at the expiration of the lease term, the Company
shall accrue depreciation over the remaining useful life of the leased asset. If it cannot be reasonably determined
that the ownership of the leased asset can be obtained at the expiration of the lease term, the Company shall accrue
depreciation within the shorter of the lease term and the remaining useful life of the leased asset. When the
recoverable amount is lower than the book value of the right-of-use asset, the Company shall write down its book
value to the recoverable amount.
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 amortizedby 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-
49
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
“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 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.
50
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.
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 promissorygoods.
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
51
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is earlier.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for
termination of employment. The salaries or wages and the social contributions to be paid for the employees who
retire before schedule from the date on which the employees stop rendering services to the scheduled retirement
date, shall be recognized (as compensation for termination of employment) in the current profit or loss by the Group
if the recognition principles for provisions are satisfied.
(4) Accounting 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 benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan assets from
the present value of defined benefit obligation. The defined benefit obligation is annually calculated in accordance
with the expected accumulated welfare unit method by the independent actuary by adopting the treasury bond rate
with similar obligation term and currency. The service charges related to the supplementary retirement benefits
(including the service costs of the current period, the previous service costs, and the settlement gains or losses) and
the net interest are reckoned in the current profits and losses or other asset costs, the changes generated by
recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.
29.Lease liability
Substantialon the commencement date of the lease term, the Company recognizes the present value of the unpaid
lease payments as lease liabilities. Lease payments include the following five items: fixed payments and in-
substance fixed payments, if there is a lease incentive, deduct the amount related to the lease incentive; variable
lease payments that depend on an index or ratio, which are determinedat the initial measurement according to the
index or ratio determination on the commencement date of lease term; exercise price for a purchase option provided
that the lessee is reasonably certain that the option shall be exercised; payments for exercising the option to terminate
the lease provided that the lease term reflects that the lessee shall exercise the option to terminate the lease option;
estimated payments due based on guaranteed residual value provided by the lessee.
When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount
rate. If the interest rate implicit in the lease cannot be determined, the company’s incremental borrowing rate is used
as the discount rate. The Company calculates the interest expense of the lease liability in each period of the lease
term according to the fixed periodic interest rate, and includes it in the current profit and loss, unless it is otherwise
stipulated to be included in the cost of the relevant assets. Variable lease payments that are not included in the
measurement of lease liabilities are included in the current profit and loss when they are actually incurred, unless
otherwise stipulated to be included in the cost of the relevant assets. After the commencement date of the lease term,
when there is a change in the in-substance fixed payment, or a change in the estimated amount payable for
theguaranteed residual value, or a change in the index or ratio used to determine the lease payment, or a change in
the evaluation results of the purchase option, renewal option or termination option or when the actual exercise
52
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
situation changes, the Company shall re-measure the lease liability according to the present value of the changed
lease payments.
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:
② 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;
② 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 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 increasedaccordingly.
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 canceled, it will be treated as an accelerated vesting on the cancellation day,
53
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
(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: ② The customer obtains and
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; ②The
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:② 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; ②The company
has transferred the goods to the customer in kind, that is, the customer has physically taken possession of the goods;
② 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; ② The customer has accepted
54
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
the goods; ②Other signs that the customer has obtained control of the goods.
2)Revenue measurement principle
②The 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.
② 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.
②If 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 recognition criteria for sales revenue and specific judgment criteria for recognition time:
The company's domestic sales revenue confirmation time point: the company delivers goods as agreed in the order.
On the reconciliation date agreed with the buyer, the goods received and inspected by the buyer during the period
from the previous reconciliation date to the current reconciliation date are checked with the buyer. After both parties
check, the risks and rewards are transferred to the buyer. The company issues an invoice to the buyer according to
the variety, quantity and amount confirmed in the reconciliation, and confirms the realization of sales revenue on
the reconciliation date.
Confirmation time of the company's foreign sales revenue: after the customs review is completed, the company
confirms the realization of sales revenue according to the export date specified on the customs declaration.
Differences in accounting policies for revenue recognition due to different operating models for the same type of
business
N/A
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
55
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.
(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
A lease is a contract whereby the lessor transfers the right to use the asset to the lessee for consideration within a
certain period of time. On the commencement date of the contract, the Company assesses whether the contract is a
lease or contains a lease. A contract is or contains a lease if a party to a contract transfers its right to control the use
of one or more identified assets for a certain period of time in exchange for consideration. If the contract contains
multiple separate leases at the same time, the Company shall split the contract and conduct accounting treatment for
56
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
each separate lease. If the contract contains both lease and non-lease parts, the lessee and the lessor shall split the
lease and non-lease parts.
(1) The Company as the lessee
For the general accounting treatment of the Company as a lessee, please refer to Note V. 23 “Right-of-Use Assets”
and Note V. 29 “Lease Liabilities”.
For short-term leases with a lease term of not more than 12 months and leases of low-value assets with low value
when a single asset is new, the Company chooses not to recognize right-of-use assets and lease liabilities, and the
relevant rental expenses are included in the current profit and loss or related asset cost on a straight-line basis during
each period of the lease term.
If the lease changes and the following conditions are met at the same time, the Company will account for the lease
change as a separate lease: the lease change expands the scope of the lease by adding the right to use one or more
leased assets; the increased consideration is equivalent to the amount of the separate price for the expanded part of
the lease adjusted according to the contract situation. If the lease change is not accounted for as a separate lease, on
the effective date of the lease change, the Company shall re-allocate the consideration of the contract after the
change, re-determine the lease term, and remeasure the lease liability at the present value calculated according to
the changed lease payment and the revised discount rate.
(2) The Company as the lessor
On the lease commencement date, the Company classifies the leases that have substantially transferred almost all
the risks and rewards related to the ownership of leased assets as finance leases, and other leases are operating leases.
1) Operating lease
The Company recognizes the lease receipts in various periods during the lease term for the rent in an operating
lease.The initial direct costs 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)Financing lease
On the commencement date of the lease term, the Company recognizes the finance lease receivables based on the
net investment in the lease (the sum of the unguaranteed residual value and the present value of the lease receipts
not yet received on the commencement date of the lease term and discounted at the interest rate implicit in the lease),
and derecognizes the finance lease assets. During each period of the lease term, the Company calculates and
recognizes interest income based on the interest rate implicit in the lease. The variable lease payments obtained by
the Company, which are not included in the net lease investment measurement, are included in the current profit
and loss when actually incurred.
(3) Sale and leaseback
In accordance with the provisions of the Accounting Standards for Business Enterprises No. 14 - Revenue, the
Company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale.
1) The Company as the lessee
If the asset transfer in a sale-and-leaseback transaction is a sale, the Company shall measure the right-of-use asset
formed by the sale and leaseback based on the part of the original book value of the asset related to the right of use
obtained by leaseback, and shall only recognize the gain or loss relevant to the rights transferred to the lessor.
57
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
If the asset transfer in a sale-and-leaseback transaction is not a sale, the Company shall continue to recognize the
transferred asset, and at the same time recognize a financial liability equal to the transfer income, and account for
the financial liability in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments.
2) The Company as the lessor
If the asset transfer in a sale-and-leaseback transaction is a sale, the Company shall account for the purchase of
assets in accordance with other applicable accounting standards for business enterprises, and shall account for the
lease of assets in accordance with the Accounting Standards for Business Enterprises No. 21 - Leases.
If the asset transfer in a sale-and-leaseback transaction is not a sale, the Company shall not recognize the transferred
asset, but recognize a financial asset equal to the transfer income, and account for the financial asset in accordance
with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments.
(2) Accounting treatment for financing lease
Not applicable
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 thebook 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 ofincome, 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 impactsare
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 ofthe 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 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
58
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
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
59
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
□ApplicableNot applicable
(2) Changes of important accounting estimations
□ApplicableNot applicable
38. Other
N/A
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
The output tax is calculated based on the
25%(IRD, Denmark ), 21%(Borit,
taxable income, and VAT is calculated based
VAT Belgium), 13%, 9%, 6%, Collection
on the difference after deducting the input tax
rate 5%
available for deduction for the current period
City maintaining & construction tax Turnover tax payable 7%, 5%
15%, 20%, 21%(IRD America, Borit
Corporation income tax Taxable income America), 22%(IRD, Denmark ),
25%(including Borit, Belgium)
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
WFCA, WFTR, WFAS, WFLD(Nanchang), WFDT, Borit 25%
The Company, WFJN, WFLD, WFTT, WFLD(Chongqing) , WFAM ,WFMA, WFSC 15%
WFLD (WUHAN) 20%
IRD America, Borit America 21%
SPV, IRD 22%
2. Tax incentives
The Company, WFJN, WFLD, WFTT, WFAM, WFMA, WFSC is accredited as a high-tech enterprise, and enjoy a
preferential income tax rate of 15% in 2022.
According to the “Continuation of the Enterprise Income Tax Policies for Western Development ” No.23 (Year of
60
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
2020) issued together by Ministry of Finance, SAT and NDRC,from January 1, 2011 to December 31, 2030, the
enterprises located in the west region and mainly engaged in the industrial projects stipulated in the Catalogue of
Encouragement Industries in Western China, and whose main business income accounting for more than 60% of
the total income of the enterprise in the current year can pay the corporate income tax at the tax rate of 15%. In first
half of 2022, WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.
In 2022, WFLD (Wuhan) meets the standards of small and low-profit enterprises, and the part of the taxable income
not exceeding one million yuan shall be included in the taxable income at a reduced rate of 12.5%, and the corporate
income tax shall be paid at the tax rate of 20%; the part of the taxable income exceeding one million yuan but not
more than three million yuan shall be included in the taxable income at a reduced rate of 25%, and the corporate
income tax shall be paid at the tax rate of 20%.
VII. Notes to major items in consolidated financial statements
1. Monetary fund
Unit: RMB/CNY
Item Ending balance Opening balance
Cash on hand 97,884.43 150,438.79
Cash in bank 2,311,600,835.40 1,864,868,497.94
Other monetary funds 46,256,476.74 31,044,328.96
Total 2,357,955,196.57 1,896,063,265.69
Including: Total amount saving aboard 165,582,379.20 69,969,414.25
Total amount with restriction on use for mortgage, pledge or freeze 46,256,476.74 31,044,328.96
Other explanation
The ending balance of other monetary funds includes bank acceptance bill deposit 41,882,720.34 yuan, Mastercard
deposit188,440.00yuan, frozen dividends 4,185,316.40 yuan. The frozen dividend of 4,185,316.40 yuan represents the part of dividends
distributed by SNAT (stock code:600841) and Miracle Automation (stock code:002009) from 2017 to 2022held by the Company as
trading financial assets. 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: RMB/CNY
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are included in current
3,783,299,041.48 6,076,436,069.42
profit or loss
Including:
SNAT 112,472,616.00 153,643,308.00
Miracle Automation 87,135,000.00 113,793,600.00
Lifan Technology 69,757.95 77,802.11
ST Zotye 540,488.96
Forex contracts 22,219,323.17 74,734,940.30
Investment in other debt instruments and equity instrument 3,560,861,855.40 5,734,186,419.01
Including:
Total 3,783,299,041.48 6,076,436,069.42
61
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
3. Note receivable
(1) Note receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Bank acceptance bill 884,440,280.49 968,022,652.08
Trade acceptance bill 105,956,992.13 148,527,534.13
Total 990,397,272.62 1,116,550,186.21
Unit: RMB/CNY
Ending balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Category A
A
m Provis Book value Provis Book value
m
Amount Ratio o ion Amount Ratio ion
ou
u ratio ratio
nt
nt
Including
:
Note
receivable
with bad
100.00 1,116,550,186.2 100.00 1,116,550,186.2
debt 990,397,272.62 990,397,272.62
% 1 % 1
provision
accrual on
portfolio
Including:
Portfolio 1:
bank
884,440,280.49 89.30% 884,440,280.49 968,022,652.08 86.70% 968,022,652.08
acceptance
bill
Portfolio 2:
trade
105,956,992.13 10.70% 105,956,992.13 148,527,534.13 13.30% 148,527,534.13
acceptance
bill
100.00 1,116,550,186.2 100.00 1,116,550,186.2
Total 990,397,272.62 990,397,272.62
% 1 % 1
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:
□ApplicableNot applicable
(2) Bad debt provision accrual collected or switch back
Provision for bad debts in the current period:
□ApplicableNot applicable
(3) Notes receivable already pledged by the Company at the end of the period
Unit: RMB/CNY
Item Amount pledge at period-end
Bank acceptance bill 287,986,479.97
Trade acceptance bill 47,980,000.00
Total 335,966,479.97
62
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(4) Notes endorsement or discount and undue on balance sheet date
Unit: RMB/CNY
Item Amount derecognized at period-end Amount not derecognized at period-end
Bank acceptance bill 382,416,632.87
Trade acceptance bill 16,226,900.00
Total 398,643,532.87
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item Amount transfer to account receivable at period-end
Trade acceptance bill 7,201,691.00
Total 7,201,691.00
(6) Note receivable actually written-off in the period
Nil
4. Account receivable
(1) Classification of account receivable
Unit: RMB/CNY
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Provis Book
Provision Book value
Amount Ratio Amount ion value Amount Ratio Amount
ratio
ratio
Account
receivable
with bad
debt 60,762,293. 100.0 61,361,1 61,361,1
60,762,293.06 1.31% 2.87% 100.00%
provision 06 0% 42.44 42.44
accrual on
a single
basis
Including:
Account
receivable
with bad
4,566,113,771 98.69 20,703,011. 4,545,410, 2,076,98 97.13 23,186,5 2,053,800,2
debt 0.45% 1.12%
.52 % 64 759.88 6,857.82 % 64.05 93.77
provision
accrual on
portfolio
Includi
ng:
4,626,876,064 100.0 81,465,304. 4,545,410, 2,138,34 100.0 84,547,7 2,053,800,2
Total 1.76% 3.95%
.58 0% 70 759.88 8,000.26 0% 06.49 93.77
Bad debt provision accrual on single basis: 60,762,293.06 yuan
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Provision ratio Accrual causes
Hubei Meiyang Auto Industry Co., Ltd. 20,139,669.45 20,139,669.45 100.00% Have difficulty in collection
63
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Hunan Leopaard Auto Co., Ltd. 8,910,778.54 8,910,778.54 100.00% Have difficulty in collection
BD bills 7,201,691.00 7,201,691.00 100.00% Have difficulty in collection
Linyi Zotye Automobile components
6,193,466.77 6,193,466.77 100.00% Have difficulty in collection
Manufacturing Co., Ltd.
Tongling Ruineng Purchasing Co., Ltd. 4,320,454.34 4,320,454.34 100.00% Have difficulty in collection
Brilliance Automotive Group Holdings Co.,
3,469,091.33 3,469,091.33 100.00% Have difficulty in collection
Ltd.
Zhejiang Zotye Auto Manufacturing Co., Ltd. 3,117,763.27 3,117,763.27 100.00% Have difficulty in collection
Dongfeng Chaoyang Diesel Co., Ltd. 1,951,447.02 1,951,447.02 100.00% Have difficulty in collection
Jiangsu Kawei Auto Industrial Group Co., Ltd. 1,932,476.26 1,932,476.26 100.00% Have difficulty in collection
Jiangsu Jintan Automobile Industry Co., Ltd. 1,059,798.43 1,059,798.43 100.00% Have difficulty in collection
Tianjin Leiwo Engine Co., Ltd. 1,018,054.89 1,018,054.89 100.00% Have difficulty in collection
Other custom 1,447,601.76 1,447,601.76 100.00% Have difficulty in collection
Total 60,762,293.06 60,762,293.06
Bad debt provision accrual on portfolio: 20,703,011.64 yuan
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Provision ratio
Within 6 months 4,455,951,901.25 0.00
6 months to 1 year 76,568,582.83 7,656,858.28 10.00%
1-2 years 22,502,280.54 4,500,456.10 20.00%
2-3 years 4,242,182.75 1,696,873.11 40.00%
Over 3 years 6,848,824.15 6,848,824.15 100.00%
Total 4,566,113,771.52 20,703,011.64
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:
□ApplicableNot applicable
By account age
Unit: RMB/CNY
Account age Ending balance
Within 1 year (including 1 year) 4,532,520,484.08
Including: Within 6 months 4,455,951,901.25
6 months to 1 year 76,568,582.83
1-2 years 24,066,284.61
2-3 years 11,551,531.34
Over 3 years 58,737,764.55
3-4 years 58,737,764.55
Total 4,626,876,064.58
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrual Written-off Other
reversal
Bad debt
provision 84,547,706.49 1,028,126.00 3,168,519.71 935,642.25 -6,365.83 81,465,304.70
Total 84,547,706.49 1,028,126.00 3,168,519.71 935,642.25 -6,365.83 81,465,304.70
Important bad debt provision collected or switch back: nil
64
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(3) Account receivable actual charge off in the Period
Unit: RMB/CNY
Item Amount charge off
Hunan Jiangnan Automobile Manufacturing Co., Ltd. Chongqing Branch 935,638.55
Jiangxi Jiangling Motors Group Industrial Co., Ltd. 2.86
Longgong (Shanghai) Forklift Co., Ltd. 0.81
Weimar Agricultural Machinery Co., Ltd. 0.01
Changzhou Wujin Suochuan Electromechanical Co., Ltd. 0.02
Total 935,642.25
Major charge-off for the major receivable: Nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Ending balance of Ratio in total ending balance of account Ending balance of bad
Name
account receivable receivables debt reserve
Customer 1 396,779,123.91 8.58% 87,832.18
RBCD 385,798,620.85 8.34% 56,890.49
Robert Bosch Company 328,749,828.77 7.11% 845,939.26
Customer 2 208,242,386.56 4.50% 1,889,958.00
Customer 3 135,513,111.82 2.93% 1,162,713.93
Total 1,455,083,071.91 31.46%
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
5. Account receivable financing
Unit: RMB/CNY
Item Ending balance Opening balance
Note receivable - Bank acceptance bill 875,577,584.80 713,017,014.50
Total 875,577,584.80 713,017,014.50
Increase and decrease in current period and changes in fair value of receivables financing
□ApplicableNot 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:
□ApplicableNot 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 rece ivables
financing.
6. Account paid in advance
(1) Account age of account paid in advance
Unit: RMB/CNY
65
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within 1 year 3,124,211,770.74 99.86% 172,019,278.72 96.61%
1-2 years 3,479,238.57 0.11% 3,318,636.20 1.86%
2-3 years 573,262.44 0.02% 1,140,843.34 0.64%
Over 3 years 244,798.83 0.01% 1,580,491.73 0.89%
Total 3,128,509,070.58 178,059,249.99
Explanation on reasons of failure to settle on important advance payment with age over one year: NA
(2) Top 5 account paid in advance at ending balance by prepayment object
Total period-end balance of top five account paid in advance by prepayment object amounted to 2,794,379,522.02 Yuan, takes 89.32
percent of the total advance payment at period-end.
7. Other account receivables
Unit: RMB/CNY
Item Ending balance Opening balance
Dividend receivable 577,318,855.11
Other account receivables 26,434,177.38 17,908,078.54
Total 603,753,032.49 17,908,078.54
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□ApplicableNot applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
RBCD 382,918,855.11
Zhonglian Automobile Electronics Co., Ltd. 194,400,000.00
Total 577,318,855.11
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□ApplicableNot applicable
(3) Other account receivables
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds from units 1,878,156.54 1,991,247.85
66
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Cash deposit 7,938,583.18 6,212,842.61
Staff loans and petty cash 2,211,482.29 555,076.61
Social security and provident fund paid 10,858,487.31 10,547,050.70
Other 6,954,976.36 1,952,403.17
Total 29,841,685.68 21,258,620.94
2) Accrual of bad debt provision
Unit: RMB/CNY
Phase I Phase II Phase III Total
Expected credit losses Expected credit losses
Bad debt provision Expected credit
for the entire duration for the entire duration
losses over next
(without credit (with credit
12 months
impairment occurred) impairment occurred)
Balance on Jan. 1, 2022 3,318,719.00 31,823.40 3,350,542.40
Balance of Jan. 1, 2022 in the period
Current accrual 58,372.50 58,372.50
Current reversal 1,310.00 96.60 1,406.60
Balance on Jun. 30, 2022 3,375,781.50 31,726.80 3,407,508.30
Change of book balance of loss provision with amount has major changes in the period
□ApplicableNot applicable
By account age
Unit: RMB/CNY
Account age Ending balance
Within 1 year (including 1 year) 24,074,333.88
Including: Within 6 months 23,490,608.88
6 months to 1 year 583,725.00
1-2 years 3,022,710.00
2-3 years 31,806.80
Over 3 years 2,712,835.00
3-4 years 2,712,835.00
Total 29,841,685.68
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Opening
Category Ending balance
balance
Accrual Collected or reversal Written-off Other
Bad debt provision 3,350,542.40 58,372.50 1,406.60 3,407,508.30
Total 3,350,542.40 58,372.50 1,406.60 3,407,508.30
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
67
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Ratio in total
Ending
ending
Ending balance of
Enterprise Nature Account age balance of
balance bad debt
other
reserve
receivables
Ningbo Jiangbei High-Tech Industry
Deposit margin 1,767,000.00 Over 3 years 5.92% 1,767,000.00
Park Development Construction Co., Ltd.
7-12 months,
Wuxi China Resources Gas Co., Ltd. Deposit margin 1,364,750.00 4.57% 245,555.00
1-2 years
Zhenkunxing Industrial Supermarket
Deposit margin 1,000,000.00 1-2 years 3.35% 200,000.00
(Shanghai) Co., Ltd.
Within 6
Wuxi Youlian Thermal Power Co., Ltd. Deposit margin 750,000.00 2.51%
months
Chongqing Airport Group Co., Ltd. Deposit margin 636,710.00 1-2 years 2.13% 127,342.00
Total 5,518,460.00 18.48% 2,339,897.00
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
8. Inventory
Whether the Company needs to comply with the disclosure requirement of real estate industry
No
(1) Category of inventory
Unit: RMB/CNY
Ending balance Opening balance
Inventory Inventory
depreciation depreciation
Item reserve or reserve or
Provision for Provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Materials
in stock 709,886,475.14 116,703,542.91 593,182,932.23 693,636,748.61 84,791,307.00 608,845,441.61
Goods in
process 387,987,399.81 16,123,840.68 371,863,559.13 406,224,039.14 18,593,866.28 387,630,172.86
Cash on 1,315,360,360.4 1,202,707,857.2 2,578,635,721.7 2,448,920,760.6
hand 112,652,503.24 129,714,961.12
9 5 4 2
68
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
2,413,234,235.4 2,167,754,348.6 3,678,496,509.4 3,445,396,375.0
Total 245,479,886.83 233,100,134.40
4 1 9 9
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
Unit: RMB/CNY
Current increased Current decreased
Item Opening balance Switch back or Ending balance
Accrual Other Other
write-off
Materials in
stock 84,791,307.00 53,801,807.54 -152,390.70 21,737,180.93 116,703,542.91
Goods in
process 18,593,866.28 9,140,454.44 11,610,480.04 16,123,840.68
Cash on
hand 129,714,961.12 41,277,522.00 -89,942.73 58,250,037.15 112,652,503.24
Total 233,100,134.40 104,219,783.98 -242,333.43 91,597,698.12 245,479,886.83
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 Specific basis for recognition
provision
The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost
Materials in stock manufactured, its net realizable value is what will happen, estimated sales expenses and relevant taxes till the
lower than the book value goods completed
The goods in process sold due to finished Results from the estimated sale price of such inventory less the cost
Goods in process goods manufactured, its net realizable what will happen, estimated sales expenses and relevant taxes till the
value is lower than the book value goods completed
Accrual basis for inventory impairment
Cash on hand Specific basis for recognition
provision
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: RMB/CNY
Item Ending balance Opening balance
Receivable export tax rebates 8,308,752.40 6,457,803.72
VAT refund receivable 2,799,449.30 3,985,115.26
Prepaid taxes and VAT retained 35,320,464.57 204,700,549.12
Input tax to be deducted and certification 24,779.13 6,274.43
Other 5,772,397.33 5,171,179.97
Total 52,225,842.73 220,320,922.50
69
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
10. Long-term equity investment
Unit: RMB/CNY
Current changes (+, -)
Ad Other Ending
dit Ca comp Cash balance
Opening ion pit Investment rehen dividend of
The invested Other Impair Ending balance
balance (book al al gain/loss sive or profit depreci
entity equity ment Other (book value)
value) inv red recognized inco announce ation
change accrual reserve
est uct under equity me d to
me ion adjust issued s
nt ment
I. Joint venture
II. Associated enterprise
Wuxi Weifu
Environmenta 71,742,990.2
794,489,840.10 866,232,830.35
l Catalysts. 5
Co., Ltd.
3,340,114,235.4 583,991,385. 765,837, 3,158,267,911.0
RBCD
5 86 710.23 8
Zhonglian
Automobile 1,378,575,785.7 168,241,541. 194,400, 1,352,417,327.7
Electronics 7 93 000.00 0
Co., Ltd.
Wuxi Weifu
Precision
Machinery 46,014,272.27 5,377,634.71 51,391,906.98
Manufacturin
g Co., Ltd.
Changchun
Xuyang
Weifu
Automobile 10,348,819.93 -325,008.02 10,023,811.91
components
Technology
Co., Ltd.
Precors
5,345,878.98 -47,224.13 -87,222.05 5,211,432.80
GmbH
Wuxi Chelian
Tianxia
Information 143,055,955.62 -4,365,778.01 138,690,177.61
Technology
Co., Ltd.
5,717,944,788.1 824,615,542. 960,237, 5,582,235,398.4
Subtotal -87,222.05
2 59 710.23 3
5,717,944,788.1 824,615,542. 960,237, 5,582,235,398.4
Total -87,222.05
2 59 710.23 3
Other explanation
Explanation on those holding less than 20% of the voting rights but with significant influence:
(1) Precors GmbH:
Wholly-owned subsidiary of the Company - Borit, holds 8.11% equity of Precors GmbH, Borit appointed a director to Precors GmbH.
Though the representative, Borit can participate in the operation policies formulation of Precors GmbH, and thus exercise a significant
influence over Precors GmbH.
(2) Wuxi Chelian Tianxia Information Technology Co., Ltd. (Hereinafter referred to as "Chelian Tianxia"):
The Company holds 8.8295% equity of Chelian Tianxia, and appointed a director to Chelian Tianxia. Though the representative, the
Company can participate in the operation policies formulation of Chelian Tianxi, and thus exercise a significant influence over Chelian
Tianxi.
11. Other equity instrument investment
Unit: RMB/CNY
Item Ending balance Opening balance
70
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Wuxi Xidong Science & Technology Industrial Park 5,000,000.00 5,000,000.00
Beijing Zhike Industry Investment Holding Group Co., Ltd. 75,940,000.00 75,940,000.00
Rare earth Catalysis Innovation Research Institute (Dongying) Co., Ltd. 4,108,000.00 4,108,000.00
Wuxi Xichang Microchip Semi-Conductor 592,742,690.00 200,000,000.00
Total 677,790,690.00 285,048,000.00
Disclosure of the non-trading equity instrument investment item by item Nil
12. Other non-current financial assets
Unit: RMB/CNY
Item Ending balance Opening balance
Guolian Securities 198,981,411.00 208,795,178.00
Investments in other debt instruments and equity instruments held for more than
1,605,500,000.00 1,482,000,000.00
one year
Total 1,804,481,411.00 1,690,795,178.00
13. Investment real estate
(1) Investment real estate measured by cost
Applicable □Not applicable
Unit: RMB/CNY
House and Land use Construction
Item Total
Building right in 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 46,136,306.05 46,136,306.05
2.Current increased 734,547.24 734,547.24
(1) accrual or amortization 734,547.24 734,547.24
3.Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance 46,870,853.29 46,870,853.29
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) accrual
3. Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance
71
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
IV. Book value
1.Ending Book value 18,653,199.32 18,653,199.32
2.Opening Book value 19,387,746.56 19,387,746.56
(2) Investment real estate measured at fair value
□ApplicableNot applicable
(3) Investment real estate without property certification held
Nil
14. Fix assets
Unit: RMB/CNY
Item Ending balance Opening balance
Fix assets 2,954,329,704.27 2,932,210,452.51
Total 2,954,329,704.27 2,932,210,452.51
(1) Fixed assets
Unit: RMB/CNY
Machinery Transportation Electronic and
Item House and Building Total
equipment equipment other equipment
I. original book value:
1.Opening balance 1,570,238,484.44 3,540,288,690.19 32,772,506.07 714,328,321.31 5,857,628,002.01
2.Current increased 3,968,861.62 150,134,593.58 1,775,227.26 77,453,375.33 233,332,057.79
(1) Purchase 11,421,478.97 280,518.40 11,701,997.37
(2) Construction in
progress transfer-in 3,968,861.62 138,648,414.76 1,775,227.26 77,172,856.93 221,565,360.57
(3) increased by
combination
(4) Financial lease
transfer in 64,699.85 64,699.85
3.Current decreased 488,813.38 55,801,683.90 541,608.87 25,693,634.93 82,525,741.08
(1) disposal or
scrapping 488,813.38 55,801,683.90 541,608.87 25,693,634.93 82,525,741.08
4. Conversion of
foreign currency -1,570,653.76 -78,182.36 -1,648,836.12
financial statement
5.Ending balance 1,573,718,532.68 3,633,050,946.11 34,006,124.46 766,009,879.35 6,006,785,482.60
II. Accumulated
depreciation
1.Opening balance 439,825,229.29 1,952,082,761.65 20,404,183.79 422,378,184.50 2,834,690,359.23
2.Current increased 23,668,718.78 108,449,548.80 1,094,042.89 69,868,820.45 203,081,130.92
(1) accrual 23,668,718.78 108,384,848.95 1,094,042.89 69,868,820.45 203,016,431.07
(2) Financial lease
transfer in 64,699.85 64,699.85
3.Current decreased 108,540.49 44,673,027.09 440,849.62 12,955,989.77 58,178,406.97
(1) disposal or
scrapping 108,540.49 44,673,027.09 440,849.62 12,955,989.77 58,178,406.97
4. Conversion of
foreign currency -1,476,090.66 -282,881.62 -1,758,972.28
financial statement
5.Ending balance 463,385,407.58 2,014,383,192.70 21,057,377.06 479,008,133.56 2,977,834,110.90
III. Depreciation
reserves
1.Opening balance 84,541,933.61 73,319.90 6,111,936.76 90,727,190.27
2.Current increased
72
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(1) accrual
3.Current decreased 15,865,748.28 239,774.56 16,105,522.84
(1) disposal or
scrapping 15,865,748.28 239,774.56 16,105,522.84
4.Ending balance 68,676,185.33 73,319.90 5,872,162.20 74,621,667.43
IV. Book value
1.Ending Book value 1,110,333,125.10 1,549,991,568.08 12,875,427.50 281,129,583.59 2,954,329,704.27
2.Opening Book
value 1,130,413,255.15 1,503,663,994.93 12,295,002.38 285,838,200.05 2,932,210,452.51
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by operating lease
Nil
(4) Fixed assets without property certification held
Unit: RMB/CNY
Item Book value Reasons for without the property certification
Plant and office building of Weifu Chang’an 33,030,126.18 Still in process of relevant property procedures
(5) Disposal of fixed assets
Nil
15. Construction in progress
Unit: RMB/CNY
Item Ending balance Opening balance
Construction in progress 500,684,157.53 387,429,933.08
Total 500,684,157.53 387,429,933.08
(1) Construction in progress
Unit: RMB/CNY
Ending balance Opening balance
Item Depreci Depreci
Book balance ation Book value Book balance ation Book value
reserves reserves
Technical transformation of
parent company 122,449,644.48 122,449,644.48 88,688,772.85 88,688,772.85
Lot 103 phase V of the
parent company 112,555,657.23 112,555,657.23 89,599,174.42 89,599,174.42
WFMS rebuilding of the
parent company 18,686,136.06 18,686,136.06 12,185,858.74 12,185,858.74
Technical transformation of
WFAM 102,610,702.98 102,610,702.98 72,318,870.79 72,318,870.79
Technical transformation of
WFLD 10,851,400.11 10,851,400.11 13,368,288.81 13,368,288.81
Technical transformation of
Denmark RID 28,868,788.17 28,868,788.17 23,293,601.39 23,293,601.39
Other project 104,661,828.50 104,661,828.50 87,975,366.08 87,975,366.08
Total 500,684,157.53 500,684,157.53 387,429,933.08 387,429,933.08
73
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(2) Changes of major projects under construction
Unit: RMB/CNY
includin
Accumu Interes
Other Proporti g:
Fixed lated t
Curren decre on of interest
assets amount capital
Bud Opening t ased Ending project Progre capitaliz
Item transfer- of ization Source of funds
get balance increas in the balance investm ss ed
in in the interest rate of
ed Perio ent in amount
Period capitaliz the
d budget of the
ation year
year
Technical
146,37 Accumulate
transformation 88,688,7 112,610 122,449,
0,931. funds of the
of parent 72.85 ,059.96 644.48
59 company
company
Lot 103 phase
22,956 Accumulate
V of the 89,599,1 112,555,
,482.8 funds of the
parent 74.42 657.23
1 company
company
WFMS
Accumulate
rebuilding of 12,185,8 6,500, 18,686,1
funds of the
the parent 58.74 277.32 36.06
company
company
Technical 58,916 Accumulate
72,318,8 28,624, 102,610,
transformation ,712.1 funds of the
70.79 879.99 702.98
of WFAM 8 company
Technical 22,804 Accumulate
13,368,2 25,321, 10,851,4
transformation ,206.3 funds of the
88.81 095.08 00.11
of WFLD 8 company
Technical
Accumulate
transformation 23,293,6 5,575, 28,868,7
funds of the
of Denmark 01.39 186.78 88.17
company
RID
263,12
299,454, 166,556 396,022,
Total 3,797.
567.00 ,035.03 329.03
06
(3) The provision for impairment of construction projects
Nil
(4) Engineering materials
Nil
16. Right-of-use assets
Unit: RMB/CNY
Item House and Building Machinery equipment Total
I. Original book value:
1.Opening balance 17,604,684.01 21,763,912.85 39,368,596.86
2.Current increased 4,586,742.66 3,286,519.32 7,873,261.98
3.Current decreased 98,126.31 98,126.31
4. Conversion of foreign currency financial statement 164,389.00 -543,333.15 -378,944.15
5.Ending balance 22,355,815.67 24,408,972.71 46,764,788.38
II. Accumulated depreciation
1.Opening balance 4,140,756.41 12,079,434.87 16,220,191.28
2.Current increased 1,991,793.85 133,186.57 2,124,980.42
(1) Accrual 1,991,793.85 133,186.57 2,124,980.42
3.Current decreased 38,678.12 38,678.12
74
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(1) Disposal
(2) Other 38,678.12 38,678.12
4. Conversion of foreign currency financial statement 35,156.28 -334,712.08 -299,555.80
5.Ending balance 6,167,706.54 11,839,231.24 18,006,937.78
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrual
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending Book value 16,188,109.13 12,569,741.47 28,757,850.60
2.Opening Book value 13,463,927.60 9,684,477.98 23,148,405.58
17. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Trademark and
Non-patent Computer
Item Land use right Patent trademark Total
technology software
license
I. original book value
1.Opening balance 381,012,520.44 181,889,330.47 123,152,207.22 41,597,126.47 727,651,184.60
2.Current increased 0.00 0.00 0.00 13,164,056.03 0.00 13,164,056.03
(1) Purchase 13,164,056.03 13,164,056.03
(2) internal R&D
(3) increased by
combination
3.Current decreased 0.00 0.00 0.00 0.00 0.00 0.00
(1) disposal 0.00 0.00
3. Conversion of
foreign currency -4,737,184.37 -75,126.18 -4,812,310.55
financial statement
5.Ending balance 381,012,520.44 0.00 177,152,146.10 136,241,137.07 41,597,126.47 736,002,930.08
II. accumulated
amortization
1.Opening balance 103,617,738.03 64,204,353.94 92,880,072.81 9,709,000.00 270,411,164.78
2.Current increased 4,182,399.21 0.00 7,274,384.09 10,186,855.50 0.00 21,643,638.80
(1) accrual 4,182,399.21 7,274,384.09 10,186,855.50 21,643,638.80
3.Current decreased
(1) disposal
4. Conversion of
foreign currency -1,814,061.02 -63,232.04 -1,877,293.06
financial statement
5.Ending balance 107,800,137.24 0.00 69,664,677.01 103,003,696.27 9,709,000.00 290,177,510.52
III. Depreciation
reserves
1.Opening balance 16,646,900.00 16,646,900.00
2.Current increased
(1) accrual
75
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
3.Current decreased
(1) disposal
4.Ending balance 16,646,900.00 16,646,900.00
IV. Book value
1.Ending Book value 273,212,383.20 0.00 107,487,469.09 33,237,440.80 15,241,226.47 429,178,519.56
2.Opening Book value 277,394,782.41 0.00 117,684,976.53 30,272,134.41 15,241,226.47 440,593,119.82
(2) Land use right without property certification held
Nil
18. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
The invested
entity or
Opening balance Current increased Current decreased Ending balance
matters forming
goodwill
The invested
Formed by Translation of
entity or
Opening balance business foreign currency Disposal Ending balance
matters forming
combination statements
goodwill
Merged with
WFTT 1,784,086.79 1,784,086.79
Merged with
Borit 229,470,928.96 -6,829,069.97 222,641,858.99
Total 231,255,015.75 -6,829,069.97 224,425,945.78
(2) Goodwill depreciation reserves
Other explanation
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: RMB/CNY
Amortized in
Item Opening balance Current increased Other decrease Ending balance
the Period
Remodeling costs etc. 15,304,783.57 802,773.19 4,160,293.14 0.00 11,947,263.62
Total 15,304,783.57 802,773.19 4,160,293.14 0.00 11,947,263.62
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
Unit: RMB/CNY
Ending balance Opening balance
Item Deductible Deferred income tax Deductible temporary Deferred income tax
temporary difference assets difference assets
Unrealized profit from
insider transactions 42,228,033.40 6,334,205.01 65,251,129.55 10,531,677.19
76
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Bad debt provision 84,662,196.11 13,027,934.23 87,681,266.17 13,383,420.21
Inventory depreciation
reserve 237,577,309.80 37,278,710.01 224,955,223.94 37,688,819.01
Depreciation reserves of
fixed assets 48,551,677.36 7,319,013.57 57,218,038.14 8,677,481.50
Depreciation reserves of
intangible assets 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Deferred income 279,305,258.43 42,180,462.93 295,502,674.12 44,620,545.44
Payable salary, accrued
expenses etc. 1,184,211,558.45 180,370,131.32 1,236,037,621.62 188,472,847.67
Depreciation assets,
amortization difference 46,993,667.62 7,648,746.44 54,047,597.49 8,868,412.34
Deductible loss of
subsidiary 79,414,078.52 17,898,035.16 53,658,338.05 11,465,129.69
Equity incentive 115,567,627.28 17,856,586.29 80,742,533.73 12,498,678.30
Fiscal and tax differences
for leasing business 378,997.84 72,554.36 378,997.84 72,554.36
Total 2,135,537,304.81 332,483,414.32 2,172,120,320.65 338,776,600.71
(2) Deferred income tax liabilities that are not offset
Unit: RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
The difference between the fair value
and taxation basis of WFTT assets in a 10,426,145.95 1,563,921.87 10,660,027.75 1,599,004.14
merger not under the same control
The difference between the fair value
and taxation basis of IRD assets in a 62,262,316.74 13,697,709.68 68,854,748.78 15,148,044.73
merger not under the same control
The difference between the fair value
and taxation basis of Borit assets in a 22,049,472.63 5,512,368.16 25,246,551.70 6,311,637.91
merger not under the same control
Change of fair value of transaction
financial asset 243,001,104.43 36,494,552.16 318,337,329.74 47,794,985.96
Accelerated depreciation of fixed assets 312,152,327.81 48,772,268.58 294,934,456.08 48,772,268.60
Total 649,891,367.56 106,040,820.45 718,033,114.05 119,625,941.34
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
Trade-off between Ending balance of Trade-off between the Opening balance of
the deferred deferred income tax deferred income tax deferred income tax
Item
income tax assets assets or liabilities after assets and liabilities at assets or liabilities after
and liabilities off-set period-begin off-set
Deferred income tax assets -85,235,107.64 247,248,306.68 -96,528,406.14 242,248,194.57
Deferred income tax
liabilities -85,235,107.64 20,805,712.81 -96,528,406.14 23,097,535.20
(4) Details of unrecognized deferred income tax assets
Unit: RMB/CNY
Item Ending balance Opening balance
Bad debt reserve 210,616.89 216,982.72
Inventory depreciation reserve 7,902,577.03 8,144,910.46
Loss from subsidiary 307,204,498.81 279,247,744.04
Depreciation reserves of fixed assets 26,069,990.07 33,509,152.13
Other equity instrument investment 13,600,000.00 13,600,000.00
77
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Equity incentive 3,299,059.19 2,304,871.81
Total 358,286,741.99 337,023,661.16
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Maturity year Ending amount Opening amount Note
2022 3,781,066.93 Subsidiaries have operating losses
2023 485,532.04 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 22,596,818.84 22,596,818.84 Subsidiaries have operating losses
2027 8,082,125.62 Subsidiaries have operating losses
Overseas subsidiaries have
No expiration period 245,367,818.80 221,025,681.23 operating losses
Total 307,204,498.81 279,247,744.04
21. Other non-current assets
Unit: RMB/CNY
Ending balance Opening balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Engineering
equipment paid in 417,664,761.50 417,664,761.50 267,941,354.57 267,941,354.57
advance
Total 417,664,761.50 0.00 417,664,761.50 267,941,354.57 0.00 267,941,354.57
22. Short-term loans
(1) Category of short-term borrowings
Unit: RMB/CNY
Item Ending balance Opening balance
Guaranteed Loan 72,197,000.00
Credit loan 4,084,272,713.42 1,264,241,086.57
Bill financing 100,000,000.00 100,000,000.00
Accrued interest 3,410,087.52 1,520,119.98
Total 4,187,682,800.94 1,437,958,206.55
(2) Overdue short-term loans without payment
Nil
23. Note payable
Unit: RMB/CNY
Category Ending balance Opening balance
Bank acceptance bill 1,603,408,581.52 1,760,032,216.30
Total 1,603,408,581.52 1,760,032,216.30
Notes expired at year-end without paid was 0.00 Yuan.
78
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Other instructions: The deposit paid for issuing the above bank acceptance bill was 41882720.34 yuan, and the
pledged bills receivable was 478145099.57 yuan.
24. Account payable
(1) Account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Within 1 year 4,175,265,277.10 3,066,299,727.36
1-2 years 35,697,326.45 64,962,570.18
2-3 years 15,537,530.83 52,067,026.49
Over three years 18,494,438.39 23,324,378.56
Total 4,244,994,572.77 3,206,653,702.59
(2) Important account payable with account age over one year
Nil
25. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
Item Ending balance Opening balance
Within 1 year 6,950,948.17 2,854,518.96
Total 6,950,948.17 2,854,518.96
(2) Important accounts received in advance with account age over one year
Nil
26. Contractual liability
Unit: RMB/CNY
Item Ending balance Opening balance
Within 1 year 83,891,206.70 132,406,102.56
1-2 years 6,993,861.44 2,681,086.39
2-3 years 980,715.77 132,196.85
Over three years 1,238,881.37 1,208,250.59
Total 93,104,665.28 136,427,636.39
27. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 207,822,331.67 563,755,117.95 629,587,546.74 141,989,902.88
II. Post-employment welfare- defined 20,279,307.31 77,575,291.02 77,050,211.90 20,804,386.43
79
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
contribution plans
III. Dismissed welfare 1,245,327.09 65,317.00 793,904.69 516,739.40
IV. Other welfare due within one year 93,880,000.00 28,789,384.41 65,090,615.59
V. Other short-term welfare-Housing
subsidies, employee benefits and 16,661,536.63 50,202.00 676,827.00 16,034,911.63
welfare funds
Total 339,888,502.70 641,445,927.97 736,897,874.74 244,436,555.93
(2) Short-term compensation
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonuses, allowances
197,176,934.90 427,946,015.89 494,611,467.55 130,511,483.24
and subsidies
2. Welfare for workers and staff 72,058.92 53,435,111.58 53,196,916.36 310,254.14
3. Social insurance 192,691.73 35,139,421.94 35,127,823.25 204,290.42
Including: Medical insurance 172,605.50 28,881,038.83 28,872,696.66 180,947.67
Work injury insurance 16,653.30 3,352,037.11 3,350,742.65 17,947.76
Maternity insurance 3,432.93 2,906,346.00 2,904,383.94 5,394.99
4. Housing accumulation fund 656,874.00 39,725,051.00 39,655,442.00 726,483.00
5. Labor union expenditure and
9,611,229.93 6,924,420.00 6,405,696.56 10,129,953.37
personnel education expense
6.Other short-term salary-social
112,542.19 585,097.54 590,201.02 107,438.71
security
Total 207,822,331.67 563,755,117.95 629,587,546.74 141,989,902.88
(3) Defined contribution plans
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment insurance 416,445.06 60,492,393.14 60,534,131.19 374,707.01
2. Unemployment insurance 25,533.44 2,004,087.85 2,015,564.79 14,056.50
3. Enterprise annuity 19,837,328.81 15,078,810.03 14,500,515.92 20,415,622.92
Total 20,279,307.31 77,575,291.02 77,050,211.90 20,804,386.43
28. Taxes payable
Unit: RMB/CNY
Item Ending balance Opening balance
Value-added tax 41,776,505.38 24,533,584.80
Corporation income tax 57,082,502.91 2,317,331.81
Individual income tax 510,802.49 3,528,037.22
City maintaining & construction tax 2,937,740.31 1,750,188.23
Educational surtax 2,099,999.44 1,250,134.44
Other (including stamp tax and local
6,423,508.34 6,726,372.38
funds)
Total 110,831,058.87 40,105,648.88
80
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
29. Other account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Interest payable 5,621.94 6,184.14
Dividend payable 165,975,264.00 25,671,100.00
Other accounts payable 302,282,740.42 334,228,033.32
Total 468,263,626.36 359,905,317.46
(1) Interest payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other 5,621.94 6,184.14
Total 5,621.94 6,184.14
Major overdue interest: nil
(2) Dividend payable
Unit: RMB/CNY
Item Ending balance Opening balance
Common stock dividend 165,975,264.00 25,671,100.00
Total 165,975,264.00 25,671,100.00
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: RMB/CNY
Item Ending balance Opening balance
Deposit and margin 27,357,681.81 24,601,774.89
Social insurance and reserves funds that withholding 1,504,143.84 1,695,074.09
Intercourse funds of unit 30,982,145.98 33,562,145.98
Restricted Share repurchases obligations 238,302,620.00 269,101,020.00
Other 4,136,148.79 5,268,018.36
Total 302,282,740.42 334,228,033.32
2) Significant other payable with over one year age
Unit: RMB/CNY
Item Ending balance Reasons for non-repayment or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Restricted share repurchase obligation 238,302,620.00 Restricted stock repurchase business
Total 242,802,620.00
81
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
30. Non-current liabilities due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
Long-term borrowings due within one
27,101,755.70 27,744,527.80
year
Lease payments due within one year 4,571,288.34 6,318,273.66
Interest payable 23,516.67 25,972.22
Total 31,696,560.71 34,088,773.68
31. Other current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
Rebate payable 160,130,711.03 198,936,922.68
Pending sales tax 9,022,910.40 14,032,348.87
Total 169,153,621.43 212,969,271.55
32. Long-term loans
(1) Category of Long-term loans
Unit: RMB/CNY
Item Ending balance Opening balance
Guaranteed loan 200,000,000.00
Total 200,000,000.00
33. Lease liability
Unit: RMB/CNY
Item Ending balance Opening balance
Lease Payments 21,504,518.33 15,795,469.25
Total 21,504,518.33 15,795,469.25
34. Long-term account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Long-term account payable 13,750,000.00 13,750,000.00
Special accounts payable 18,265,082.11 18,265,082.11
Total 32,015,082.11 32,015,082.11
(1) Long-term account payable listed by nature
Unit: RMB/CNY
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2007) 1,230,000.00 1,230,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2008) 2,750,000.00 2,750,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2009) 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2010) 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2011) 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2013) 2,740,000.00 2,740,000.00
Total 13,750,000.00 13,750,000.00
Other explanation:
82
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 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 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 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 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 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 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 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 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 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 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: RMB/CNY
Opening Current Current Ending Cause of
Item
balance increased decreased balance formation
Removal compensation of subsidiary WFJN 18,265,082.11 18,265,082.11
Total 18,265,082.11 18,265,082.11
Other explanation:
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 2022.
35. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item Ending balance Opening balance
1. Termination benefits 4,829,589.69 4,829,589.69
2. Other long-term benefits 103,482,333.50 103,482,333.50
Total 108,311,923.19 108,311,923.19
(2) Changes in defined benefit plans
Nil
83
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
36. Deferred income
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grants 298,052,867.56 685,099.46 18,721,634.94 280,016,332.08
Total 298,052,867.56 685,099.46 18,721,634.94 280,016,332.08
Item with government grants involved:
Unit: RMB/CNY
Amount Cost
New Amount
reckoned reduct Assets
Opening grants reckoned into Other
Item in non- ion in Ending balance related/Inco
balance in the other income changes
operation the me related
Period in the period
revenue period
Industrialization
project for injection
VE pump system with Assets
electronically 721,000.26 721,000.26 0.00 related/Inco
controlled high me related
pressure for less-
emission diesel used
Appropriation on
reforming of
production line
technology and R&D Assets
6,318,348.62 390,825.70 5,927,522.92
ability of common rail related
system for diesel by
distributive high-
voltage
Fund of industry Income
60,520,000.00 60,520,000.00
upgrade (2013) related
R&D and
industrialization of
the high-pressure
Assets
variable pump of the 3,817,474.67 555,205.50 3,262,269.17
related
common rail system
of diesel engine for
automobile
Research institute of
motor vehicle exhaust Assets
648,660.17 262,398.42 386,261.75
aftertreatment related
technology
Fund of industry Income
36,831,000.00 36,831,000.00
upgrade (2014) related
New-built assets
compensation after Assets
83,134,428.94 9,245,732.76 73,888,696.18
the removal of parent related
company
Fund of industry Income
40,000,000.00 40,000,000.00
upgrade (2016) related
Guiding capital for
the technical reform
Assets
from State Hi-Tech 5,057,667.33 635,276.68 4,422,390.65
related
Technical
Commission
84
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Implementation of the
variable cross-section Assets
5,882,788.71 777,352.10 5,105,436.61
turbocharger for related
diesel engine
Demonstration project
Assets
for intelligent 652,381.50 97,052.14 555,329.36
related
manufacturing
The 2nd batch of
provincial special
funds for industry Assets
3,446,350.12 580,448.74 2,865,901.38
transformation of related
industrial and
information in 2019
Municipal
technological reform Assets
4,143,406.07 302,165.36 3,841,240.71
fund allocation in related
2020
Strategic cooperation
agreement funding for
Assets
key enterprise of 4,450,869.59 319,883.18 4,130,986.41
related
smart manufacturing
in high-tech zone
The 3rd batch of
provincial special
funds for industry Assets
13,500,000.00 13,500,000.00
transformation of related
industrial and
information in 2021
Assets
732,2
Other 28,928,491.58 4,834,294.10 -47,163.42 24,779,296.94 related/Inco
62.88
me related
298,052,867.5 732,2
Total 0.00 18,721,634.94 0.00 -47,163.42 280,016,332.08
6 62.88
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 Jiangs u
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 721,000.26 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 grants related to assets, amount of 390,825.70 yuan was reversed based on the depreciation
schedule of the related assets during the period.
(3) 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.
(4) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the
Company received appropriated for the project in 2013 with 8.05 million yuan in line with documents of Xi Ke Ji [2013] No.186, Xi
Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, 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 yua n
85
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
in 2015; and belongs to government grant with assets concerned, and shall be amortized according to the depreciation process, amount
of 555,205.50 yuan amortizes in the year.
(5) 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 grants related to assets
and will be amortized according to the depreciation process, amount of 262,398.42 yuan amortizes in the year.
(6) 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.
(7) 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 9,245,732.76 yuan amortizes in the year.
(8) 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.
(9) Guiding 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 635,276.68 yuan amortize in the year.
(10) 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 777,352.10 yuan amortize in the year.
(11) 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 intellige nt
manufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the de preciation
progress of the assets. Amortization for the year amounts to 97,052.14 yuan.
(12) 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 grants related to assets. and shall be amortized according to
the depreciation process, amount of 580,448.74 yuan amortize in the year.
(13) 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 grants related to assets. and shall be amortized according to the depreciation process, amount of
302,165.36 yuan amortize in the year.
(14) 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, 0.7 million yuan received in the Period, this grant was
related to the intelligent transformation project and belonged to the government grants related to assets. and shall be amortized
according to the depreciation process, amount of 319,883.18 yuan amortize in the year.
(15) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to the SCGM
[2021] No.92, the government grant 13.5 million yuan received in 2021 was for the research, development and industrialization of
membrane electrodes for high-performance automotive proton exchange membrane fuel cells, which was an assets related government
grants.
37. Share capital
Unit: RMB/CNY
86
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Change during the period (+, -)
Opening balance Shares transferred Ending balance
New shares Bonus
from capital Other Subtotal
issued share
reserve
Total shares 1,008,659,570.00 1,008,659,570.00
38. Capital reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3,238,990,188.72 3,238,990,188.72
capital premium)
Other Capital reserve 132,353,984.10 34,733,141.01 167,087,125.11
Total 3,371,344,172.82 34,733,141.01 3,406,077,313.83
Other explanation, including changes in the period and reasons for changes;
Other capital reserves have 34,733,141.01 yuan increased in the current period, which is the net amount after deducting the
35,819,280.93 yuan amount attributable to shareholders from share-based payment fee 1,086,139.92 yuan, settled by equity.
39. Treasury stock
Unit: RMB/CNY
Current
Item Opening balance Current increased Ending balance
decreased
Share repurchases 1,148,777.74 100,001,057.07 101,149,834.81
Repurchase obligation of
269,101,020.00 30,798,400.00 238,302,620.00
restricted stock incentive plan
Total 270,249,797.74 100,001,057.07 30,798,400.00 339,452,454.81
Other explanations, including changes in the current period and explanations of the reasons for the changes:
Share repurchase: shares increased due to the repurchase of 4,982,800.00 shares by way of centralized bidding in 2022
Repurchase obligation of restricted stock incentive plan：The decrease of 30798400.00 yuan in the current period is the cash
dividend received by the restricted stock incentive object in the current period.
40. Other comprehensive income
Unit: RMB/CNY
Current period
Less:
Less:
written
written
in other
in other
compreh
compreh
ensive
ensive
income
income
in
in Belong to
Opening Account previous Less: Ending
Item previous Belong to minority
balance before period income balance
period parent company sharehold
income tax in and tax
and after tax ers after
the year carried expense
carried tax
forward
forward
to
to gains
retained
and
earnings
losses in
in
current
current
period
period
87
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
I. Other
comprehensive
income that
16,008.80 16,008.80
cannot be
reclassified to
profit or loss
Other
comprehensive
income that
cannot be
16,008.80 16,008.80
transferred to
profit or loss
under the equity
method
II. Other
comprehensive
income items -
- - -
which will be 12,679,652.
36,762,353.40 12,679,652.16 49,442,005.56
reclassified 16
subsequently to
profit or loss
Conversion
difference of -
- - -
foreign currency 12,679,652.
36,762,353.40 12,679,652.16 49,442,005.56
financial 16
statement
Total other -
- - -
comprehensive 12,679,652.
36,746,344.60 12,679,652.16 49,425,996.76
income 16
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: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 712,215.31 13,239,465.25 12,236,215.31 1,715,465.25
Total 712,215.31 13,239,465.25 12,236,215.31 1,715,465.25
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.
(2) Among the above safety production costs, including the safety production costs accrual by the Company in line with regula tions
and the parts enjoy by shareholders of the Company in safety production costs accrual by subsidiary in line with regulations.
42. Surplus reserve
Unit: RMB/CNY
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: RMB/CNY
Item Current period Last period
88
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Retained profits at the end of last year before adjustment 14,814,787,377.86 13,756,102,424.62
Retained profits at the beginning of the year after adjustment 14,814,787,377.86 13,756,102,424.62
Add: The net profits belong to owners of patent company of this period 1,232,762,710.95 2,575,371,419.80
Less: cash dividends payable 1,609,059,668.80 1,513,341,439.50
Less: Withdraw employee rewards and welfare funds 4,081,359.92
Add: Net effect of disposal other equity instrument investment 736,332.86
Retained profit at period-end 14,438,490,420.01 14,814,787,377.86
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: RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main operating 7,112,804,273.14 5,858,547,460.17 8,767,778,890.21 7,264,238,382.73
Other business 209,031,087.84 166,024,282.54 269,912,866.03 233,678,774.34
Total 7,321,835,360.98 6,024,571,742.71 9,037,691,756.24 7,497,917,157.07
Information on the top five items of revenue recognized during the reporting period:
Unit: RMB/CNY
Serial Name Income amount
1 RBCD 1,633,269,280.49
2 Customer 1 777,256,393.13
3 Robert Bosch Company 724,668,201.55
4 Customer 2 678,105,449.94
5 Customer 3 269,171,662.59
45. Operating tax and extras
Unit: RMB/CNY
Item Current period Last Period
City maintaining & construction tax 8,634,987.02 14,341,221.75
Educational surtax 6,170,777.25 10,225,750.57
Property tax 8,897,091.90 8,796,684.97
Land use tax 2,253,305.65 2,254,956.27
Vehicle use tax 3,985.52 4,723.44
Stamp duty 2,394,141.59 2,318,539.73
Other taxes 523,132.85 267,617.59
Total 28,877,421.78 38,209,494.32
46. Sales expenses
Unit: RMB/CNY
89
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Item Current period Last Period
Salary and fringe benefit 24,952,862.28 26,304,864.83
Consumption of office materials and
3,302,587.07 4,474,074.11
business travel charge
Warehouse charge 1,044,900.83 3,451,305.60
Three guarantees and quality cost 30,734,960.85 41,751,346.64
Business entertainment fee 9,087,067.46 12,819,753.95
Other 9,898,213.94 22,392,270.43
Total 79,020,592.43 111,193,615.56
47. Administration expenses
Unit: RMB/CNY
Item Current period Last Period
Salary and fringe benefit 151,774,582.74 150,875,422.64
Depreciation charger and long-term
37,588,034.10 35,267,896.09
assets amortization
Consumption of office materials and
6,085,675.94 7,618,286.05
business travel charge
Share-based payment 22,799,516.92 24,256,881.94
Other 58,964,445.09 48,207,891.60
Total 277,212,254.79 266,226,378.32
48. R&D expenses
Unit: RMB/CNY
Item Current period Last Period
Technological development expenses 289,631,376.50 249,583,255.99
Total 289,631,376.50 249,583,255.99
49. Financial expenses
Unit: RMB/CNY
Item Current period Last Period
Interest expenses 34,275,262.65 14,244,003.27
Note discount interest expenses 3,052,594.14 13,128,344.93
Less: interest income 13,927,929.36 16,673,615.70
Gains/losses from exchange 4,316,196.05 928,280.82
Handling charges 2,057,941.09 4,308,059.74
Total 29,774,064.57 15,935,073.06
50. Other income
Unit: RMB/CNY
Sources of income generated Current period Last Period
Government grants with routine
26,095,621.93 23,433,211.68
operation activity concerned
Total 26,095,621.93 23,433,211.68
90
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
51. Investment income
Unit: RMB/CNY
Item Current period Last Period
Income of long-term equity investment
823,400,731.10 962,736,510.68
calculated based on equity
Investment income from holding financial
964,645.90 3,468,760.80
assets available for sales
Investment income of financial products 105,107,324.41 140,176,231.37
Other -680,357.44 -609,970.51
Total 928,792,343.97 1,105,771,532.34
52. Income from change of fair value
Unit: RMB/CNY
Sources Current period Last Period
Changes in the fair value of wealth management products 3,290,951.54 5,597,561.64
Changes in the fair value of the stocks of listed companies held-excluding the stocks
-77,723,879.68 -91,729,334.10
of listed companies that are included in other equity instrument investments
Total -74,432,928.14 -86,131,772.46
53. Credit impairment loss
Unit: RMB/CNY
Item Current period Last Period
Bad debt loss 2,083,427.81 6,750,336.12
Total 2,083,427.81 6,750,336.12
54. Assets impairment loss
Unit: RMB/CNY
Item Current period Last Period
Loss of inventory falling price and loss of
-104,219,783.98 -103,997,387.44
contract performance cost impairment
Total -104,219,783.98 -103,997,387.44
55. Income from assets disposal
Unit: RMB/CNY
Sources Current period Last Period
Income from disposal of non-current
3,597,231.29 3,076,178.86
assets
Losses from disposal of non-current
-1,706,951.34 -149,592.04
assets
Total 1,890,279.95 2,926,586.82
91
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
56. Non-operating income
Unit: RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Other 218,285.29 488,184.66 218,285.29
Total 218,285.29 488,184.66 218,285.29
Government subsidies included in the current profit and loss: nil
57. Non-operating expense
Unit: RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donation 160,000.00
Total non-current asset
2,175,378.87 625,271.19 2,175,378.87
retirement losses
Including: loss of fixed assets
2,175,378.87 625,271.19 2,175,378.87
scrap
Other 21,187.00 66,356.11 21,187.00
Total 2,196,565.87 851,627.30 2,196,565.87
58. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
Item Current period Last Period
Payable tax in current period 106,918,042.74 248,833,342.25
Adjusted the previous income tax 281,934.62 1,167,902.15
Increase/decrease of deferred income tax
6,279,057.80 -131,973,066.28
assets
Increase/decrease of deferred income tax
-12,925,247.95 -55,516.90
liability
Total 100,553,787.21 117,972,661.22
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item Current period
Total profit 1,370,978,589.16
Income tax measured by statutory/applicable tax rate 205,646,788.37
Impact by different tax rate applied by subsidies 13,053,639.86
Adjusted the previous income tax 281,934.62
Impact by non-taxable revenue -112,982,994.62
92
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Impact on cost, expenses and losses that unable to deducted -9,390,248.84
Impact by the deductible losses of the un-recognized previous deferred
-6,429,812.52
income tax
The deductible temporary differences or deductible losses of the un-
5,235,274.07
recognized deferred income tax assets in the Period
Other 5,139,206.27
Income tax expense 100,553,787.21
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: RMB/CNY
Item Current period Last Period
Interest income 13,927,929.36 16,673,615.70
Government grants 8,106,249.87 6,670,613.29
Other 404,502.49 493,488.03
Total 22,438,681.72 23,837,717.02
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
Item Current period Last Period
Cash cost 254,434,197.77 250,964,650.29
Other 18,468,018.35 9,252,217.76
Total 272,902,216.12 260,216,868.05
(3) Cash received from other investment activities
Unit: RMB/CNY
Item Current period Last Period
Borit acquisition money returned 1,108,314.69
Total 1,108,314.69
(4) Cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
Nil
(6) Cash paid related with financing activities
Unit: RMB/CNY
Item Current period Last Period
Loans of Wuxi Industry Group are paid 5,470,000.00
93
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
by WFLD
National debt paid transfer to loans 345,194.00
Lease payments 865,486.76 1,104,682.01
Share repurchase 100,001,057.07
Total 100,866,543.83 6,919,876.01
61. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities:
Net profit 1,270,424,801.95 1,689,043,185.12
Add: Assets impairment provision 102,136,356.17 97,247,051.32
Depreciation of fixed assets, consumption of oil assets and depreciation
203,750,978.31 188,585,414.05
of productive biology assets
Depreciation of right-of-use assets 2,124,980.42 3,246,652.07
Amortization of intangible assets 21,643,638.80 22,053,152.82
Amortization of long-term deferred expenses 4,160,293.14 10,464,905.27
Loss from disposal of fixed assets, intangible assets and other long-
-1,890,279.95 -2,926,586.82
term assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 2,175,378.87 625,271.19
Gain/loss of fair value changes (gain is listed with “-”) 74,432,928.14 86,131,772.46
Financial expenses (gain is listed with “-”) 36,972,909.58 14,026,658.93
Investment loss (gain is listed with “-”) -929,472,701.41 -1,105,771,532.34
Decrease of deferred income tax asset ((increase is listed with “-”) 6,279,057.80 -134,106,651.78
Increase of deferred income tax liability (decrease is listed with “-”) -12,925,247.95 -2,907,134.81
Decrease of inventory (increase is listed with “-”) 1,265,262,274.11 622,604,921.62
Decrease of operating receivable accounts (increase is listed with “-”) -5,235,236,937.97 -44,866,280.95
Increase of operating payable accounts (decrease is listed with “-”) 659,261,306.91 -1,402,007,014.29
Other 36,918,218.19 38,747,825.31
Net cash flows arising from operating activities -2,493,982,044.89 80,191,609.17
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 1,490,785,302.80 1,476,008,228.28
Less: Balance of cash equivalent at period-begin 1,094,018,936.73 944,946,018.70
Add: Balance at period-end of cash equivalents
Less: Balance at period-begin of cash equivalents
Net increase of cash and cash equivalents 396,766,366.07 531,062,209.58
(2) Net cash payment for the acquisition of a subsidiary in the period
Nil
94
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item Ending balance Opening balance
I. Cash 1,490,785,302.80 1,094,018,936.73
Including: Cash on hand 97,884.43 150,438.79
Bank deposit available for payment at any time 1,490,687,418.37 1,093,868,497.94
III. Balance of cash and cash equivalents at the period-
1,490,785,302.80 1,094,018,936.73
end
Other explanation:
The difference between bank deposits available for payment at any time and the bank deposits in Note VII. 1 "Monetary Funds" is
the company's fixed deposits in the bank.
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: RMB/CNY
Book value at
Item Restriction reason
period-end
Monetary fund 41,882,720.34 Cash deposit paid for bank acceptance
Note receivable 335,966,479.97 Notes pledge for bank acceptance
Monetary fund 188,440.00 Cash deposit for Mastercard
Monetary fund 4,185,316.40 Court freeze
Account
receivable 142,178,619.60 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, the property with
the value of 217 million yuan under the name of the Company and other seven
Trading financial
188,795,623.32 respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd.
asset
(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 713,197,199.63
64. Item of foreign currency
(1) Item of foreign currency
Unit: RMB/CNY
Closing balance of foreign Ending RMB balance
Item Rate of conversion
currency converted
Monetary fund
Including: USD 6,306,874.16 6.7114 42,327,959.18
95
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
EUR 20,343,256.77 7.0084 142,573,634.99
HKD 16,555,587.57 0.8552 14,158,338.49
JPY 361,309,032.00 0.049136 17,753,280.60
DKK 5,875,093.79 0.9422 5,535,513.37
Account receivable
Including: USD 5,703,570.03 6.7114 38,278,939.90
EUR 1,123,220.09 7.0084 7,871,975.68
JPY 7,091,196.00 0.049136 348,433.01
DKK 19,264,105.05 0.9422 18,150,639.78
Long-term loans
Including: USD
EUR
HKD
Other account receivables
Including: DKK 3,183,888.87 0.9422 2,999,860.09
Short-term loans
Including: USD 1,106,598.36 6.7114 7,426,824.23
EUR 27,373,707.15 7.0084 191,845,889.19
Account payable
Including: USD 770,313.72 6.7114 5,169,883.50
EUR 2,403,640.58 7.0084 16,845,674.64
JPY 24,899,918.00 0.049136 1,223,482.37
CHF 209,442.70 7.0299 1,472,361.24
DKK 12,537,073.02 0.9422 11,812,430.20
GBP 2,450.00 8.1365 19,934.43
Other account payable
Including: USD 1,087.90 6.7114 7,301.33
DKK 140,969.52 0.9422 132,821.48
Non-current liabilities due
within one year
Including: EUR 460,417.53 7.0084 3,226,790.22
DKK 1,114,977.70 0.9422 1,050,531.99
(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.
96
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
65. Government grants
(1) Government grants
Unit: RMB/CNY
Amount reckoned in
Category Amount Item
current gain/loss
Construction of the R&D center for fuel cells in Denmark 800,000.00 Other income 800,000.00
Job stabilization subsidy 2,310,744.62 Other income 2,310,744.62
2021 the 28th batch of grants for Enterprise Technology Center
1,000,000.00 Other income 1,000,000.00
of Zhejiang Province
Subsidy funds for manufacturing individual champions,
500,000.00 Other income 500,000.00
specializing in new small giants
2020 the financial support funds for introduce investment
583,329.00 Other income 583,329.00
enterprise Tong Cai (2016) No. 187
Construction of innovation pilot benchmark 90,000.00 Other income 90,000.00
Funding of talent training 330,000.00 Other income 330,000.00
Service charge for three agencies 993,890.43 Other income 993,890.43
Other 1,498,285.82 Other income 1,498,285.82
Total 8,106,249.87
(2) Government grants rebate
□ApplicableNot applicable
66. Other
Nil
VIII. Changes of consolidation scope
1. Enterprise combined under the different 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
97
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(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 combines 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
Basic information of the transaction, the basis on which the transaction constitutes a reverse purchase, whether the
assets and liabilities retained by the listed company constitute a business and the basis thereof, the determination of
the merger cost, the amount of the adjusted equity according to the equity transactions and its calculation: NA
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
Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary, subsidiary
liquidation, etc.) and related information:
On June 30, 2022, a Japanese company co-invested in the Wuxi Weifu Qinglong Power Technology Co., Ltd with IRD FUEL CELLS
A/S, BORIT NV, ROBERT BOSCH INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New Dynamic
Industrial Development Fund (Limited Partnership), the Company holds 45% equity directly and 30% equity indirectly.
6. Other
Nil
98
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Share-holding ratio
Registered
Subsidiary operation Business nature Acquired way
place Directly Indirectly
place
Spare parts of internal- Enterprise combines under
WFJN Nanjing Nanjing 80.00%
combustion engine the same control
Automobile exhaust Enterprise combines under
WFLD Wuxi Wuxi 94.81%
purifier, muffler the same control
Spare parts of internal-
WFMA Wuxi Wuxi 100.00% Investment
combustion engine
Spare parts of internal-
WFCA Wuxi Wuxi 100.00% Investment
combustion engine
Enterprise combines under
WFTR Wuxi Wuxi Trading 100.00%
the same control
Spare parts of internal-
WFSC Wuxi Wuxi 66.00% Investment
combustion engine
Spare parts of internal- Enterprise combined under
WFTT Ningbo Ningbo 98.83% 1.17%
combustion engine the different control
Spare parts of internal- Enterprise combined under
WFAM Wuxi Wuxi 51.00%
combustion engine the different control
WFLD Automobile exhaust
Wuhan Wuhan 60.00% Investment
(WUHAN) purifier, muffler
WFLD Chongqin Automobile exhaust
Chongqing 100.00% Investment
(Chongqing) g purifier, muffler
WFLD Automobile exhaust
Nanchang Nanchang 100.00% Investment
(Nanchang) purifier, muffler
WFAS Wuxi Wuxi Smart car device 66.00% Investment
Enterprise combined under
WFDT Wuxi Wuxi Wheel motor 80.00%
the different control
WFFC Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
SPV Denmark Denmark Investment 100.00% Investment
Enterprise combined under
IRD Denmark Denmark Fuel cell components 100.00%
the different control
Enterprise combined under
IRD America America America Fuel cell components 100.00%
the different control
Enterprise combined under
Borit Belgium Belgium Fuel cell components 100.00%
the different control
Enterprise combined under
Borit America America America Fuel cell components 100.00%
the different control
Explanation on share-holding ratio in subsidiary different from ratio of voting right: nil
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
Dividend announced to
Share-holding ratio Gains/losses attributable to Ending equity of
Subsidiary distribute for minority in
of minority minority in the Period minority
the Period
WFJN 20.00% 13,647,361.87 220,264,640.74
WFSC 34.00% 3,558,197.18 24,614,948.50
WFLD 5.19% 4,689,571.65 139,655,362.58
WFAM 49.00% 15,808,199.77 205,837,114.54
Total 37,703,330.47 590,372,066.36
Explanation on holding ratio different from the voting right ratio for minority shareholders: nil
99
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Ending balance
Subsidiary Non -current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
1,472,348,435.9
WFJN 1,158,547,830.40 313,800,605.52 332,967,393.67 36,844,671.80 369,812,065.47
2
WFSC 194,100,650.20 49,340,187.51 243,440,837.71 170,649,693.14 170,649,693.14
1,419,720,518.7 6,271,286,452.4 3,631,534,169.6 3,851,176,983.2
WFLD 4,851,565,933.64 219,642,813.61
9 3 3 4
WFAM 411,355,529.72 524,911,152.62 936,266,682.34 452,201,892.87 64,732,998.05 516,934,890.92
2,307,772,464.4 8,923,342,408.4 4,587,353,149.3 4,908,573,632.7
Total 6,615,569,943.96 321,220,483.46
4 0 1 7
Unit: RMB/CNY
Opening balance
Subsidi
ary Non -current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
WFJN 1,163,244,507.43 312,639,160.97 1,475,883,668.40 403,140,636.22 39,065,672.06 442,206,308.28
WFSC 216,066,879.24 46,302,741.60 262,369,620.84 200,467,446.49 200,467,446.49
WFLD 4,503,223,903.30 1,354,614,615.10 5,857,838,518.40 3,558,321,743.41 21,480,042.25 3,579,801,785.66
WFAM 413,380,063.83 483,832,825.41 897,212,889.24 450,194,211.90 59,932,162.99 510,126,374.89
Total 6,295,915,353.80 2,197,389,343.08 8,493,304,696.88 4,612,124,038.02 120,477,877.30 4,732,601,915.32
Unit: RMB/CNY
Current period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
WFJN 447,804,363.41 65,145,897.60 65,145,897.60 -51,110,746.71
WFSC 226,170,484.98 10,460,851.26 10,460,851.26 -33,350,047.74
WFLD 3,287,233,284.58 138,297,551.67 138,297,551.67 397,683,438.88
WFAM 330,358,273.12 32,245,277.07 32,245,277.07 92,627,392.88
Total 4,291,566,406.09 246,149,577.60 246,149,577.60 405,850,037.31
Unit: RMB/CNY
Last 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
(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
100
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Share-holding ratio Accounting
Main treatment on
Regist
operat investment for
Joint venture or associated enterprise ered Business nature
ion Directly Indirectly joint venture and
place
place associated
enterprise
Wuxi Weifu Environmental Catalysts. Co.,
Wuxi Wuxi Catalyst 49.00% Equity method
Ltd.
Internal-combustion
RBCD Wuxi Wuxi 32.50% 1.50% Equity method
engine accessories
Zhonglian Automobile Electronics Co., Shang Shang Internal-combustion
20.00% Equity method
Ltd. hai hai engine accessories
Wuxi Weifu Precision Machinery Internal-combustion
Wuxi Wuxi 20.00% Equity method
Manufacturing Co., Ltd. engine accessories
Changchun Xuyang Weifu Automobile Chang Chang Automobile
34.00% Equity method
Components Technology Co., Ltd. chun chun components
Germa Germa Fuel cell
PrecorsGmbH 8.11% Equity method
ny ny components
Wuxi ChelianTianxia Information
Wuxi Wuxi Telematics services 8.83% Equity method
Technology Co., Ltd.
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:
(1)Precors GmbH:
Wholly-owned subsidiary of the Company - Borit, holds 8.11% equity of Precors, Borit appointed a director to Precors. Though the
representative, Borit can participate in the operation policies formulation of Precors, and thus exercise a significant influence over
Precors.
(2)ChelianTianxia:
The Company holds 8.8295% equity of Chelian Tianxia, and appointed a director to Chelian Tianxia. Though the representative, the
Company can participate in the operation policies formulation of Chelian Tianxi, and thus exercise a significant influence over Chelian
Tianxi.
(2) Main financial information of the important joint venture
Nil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Electronics Electronics
3,102,810,812.3 15,083,675,405.6 1,201,826,767.8 4,359,756,878.8 14,697,384,325.8
Current assets 71,871,241.06
0 5 0 8 7
Non -current 6,530,286,742.4 6,819,520,183.8
337,992,109.46 2,903,051,707.73 344,385,727.94 3,080,929,311.51
assets 7 9
3,440,802,921.7 17,986,727,113.3 7,732,113,510.2 4,704,142,606.8 17,778,313,637.3 6,891,391,424.9
Total assets
6 8 7 2 8 5
Current 1,176,624,832.7 2,858,118,635.5
9,397,043,991.47 974,515,296.05 8,623,318,592.84 2,970,685.68
liabilities 6 1
101
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Non-current
496,355,986.25 2,547,905.48 224,616,134.38 2,578,140.19
liabilities
1,672,980,819.0 3,082,734,769.8
Total liabilities 9,397,043,991.47 977,063,201.53 8,623,318,592.84 5,548,825.87
1 9
Minority
shareholders’
equity
Attributable to
parent company 1,767,822,102.7 6,755,050,308.7 1,621,407,836.9 6,885,842,599.0
8,589,683,121.91 9,154,995,044.54
shareholders’ 5 4 3 8
equity
Share of net
assets calculated 1,351,010,061.7 1,377,168,519.8
866,232,830.35 2,920,492,261.44 794,489,840.10 3,112,698,315.15
by shareholding 5 2
ratio
Adjustment
items
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized
profit of internal -30,013,111.43 -40,372,840.77
trading
--other -0.28 -0.01 -0.28 -0.01
Book value of
equity
1,352,417,327.7 1,378,575,785.7
investment in 866,232,830.35 3,158,267,911.08 794,489,840.10 3,340,114,235.45
0 7
associated
enterprise e
Fair value of the
equity
investment of
associated
enterprise with
public offers
concerned
Operation 2,448,287,999.5 4,268,529,267.9 10,208,920,776.8
8,322,989,203.32 9,460,906.82 11,255,332.80
income 4 7 1
Net profit 142,874,508.54 1,687,151,931.01 841,207,709.66 184,342,978.45 1,988,551,544.06 891,476,084.86
Net profit of the
termination of
operation
Other
comprehensive
income
Total
comprehensive 142,874,508.54 1,687,151,931.01 841,207,709.66 184,342,978.45 1,988,551,544.06 891,476,084.86
income
Dividends
received from
382,918,855.12 49,000,000.00 279,062,772.15
joint venture in
the year
(4) Financial summary for non-important Joint venture and associated enterprise
Unit: RMB/CNY
Ending balance/Current period Opening balance/Last Period
Joint venture:
Amount based on share-holding ratio
Associated enterprise:
Total book value of investment 205,317,329.30 204,764,926.80
Amount based on share-holding ratio
102
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
--Net profit 639,624.55 19,892,865.88
--Total comprehensive income 639,624.55 19,892,865.88
(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
Ni
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
103
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
the financial loss of other party. The company's credit risk mainly comes from monetary funds, structured deposits,
note receivable, account receivable and other account receivables, etc. 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, CHF, JPY, HKD and DKK, except for the USD, EUR, CHF, JPY, HKD and DKK
carried out for the machinery 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
(CNY). In consequence of the foreign financial assets and liabilities takes minor ratio in total assets, the Company
has small FX risk of the financial instrument, considered by management of the Company.
As of June 30, 2022, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
104
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
the Company are carried with CNY/RMB
Foreign currency assets of the Company as of June 30, 2022
Item Ending foreign currency Convert rate Ending CNY balance Share of assets(%)
balance converted
Monetary fund
Including: USD 6,306,874.16 6.7114 42,327,959.18 0.13
EUR 20,343,256.77 7.0084 142,573,634.99 0.45
HKD 16,555,587.57 0.8552 14,158,338.49 0.05
JPY 361,309,032.00 0.049136 17,753,280.60 0.06
DKK 5,875,093.79 0.9422 5,535,513.37 0.02
Account receivable
Including: USD 5,703,570.03 6.7114 38,278,939.90 0.12
EUR 1,123,220.09 7.0084 7,871,975.68 0.03
JPY 7,091,196.00 0.049136 348,433.01 0.00
DKK 19,264,105.05 0.9422 18,150,639.78 0.06
Other account receivable
Including: DKK 3,183,888.87 0.9422 2,999,860.09 0.01
Total share of assets 0.93
② Foreign currency liability of the Company as of 30 June 2022:
Ending foreign currency Ending CNY balance
Item Convert rate Share of liabilities(%)
balance converted
Short-term loans
Including: USD 1,106,598.36 6.7114 7,426,824.23 0.06
EUR 27,373,707.15 7.0084 191,845,889.19 1.62
Account payable
Including: USD 770,313.72 6.7114 5,169,883.50 0.04
EUR 2,403,640.58 7.0084 16,845,674.64 0.14
JPY 24,899,918.00 0.049136 1,223,482.37 0.01
CHF 209,442.70 7.0299 1,472,361.24 0.01
DKK 12,537,073.02 0.9422 11,812,430.20 0.10
GBP 2,450.00 8.1365 19,934.43 0.00
Other account payable
Including: USD 1,087.90 6.7114 7,301.33 0.00
DKK 140,969.52 0.9422 132,821.48 0.00
Non-current liabilities due
within one year
Including: EUR 460,417.53 7.0084 3,226,790.22 0.03
DKK 1,114,977.70 0.9422 1,050,531.99 0.01
Total ratio in liabilities 2.02
③ Other pricing risk
The equity instrument investment held by the Company with classification as trading 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 5th session of 9th 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
105
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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: RMB/CNY
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(i)Trading financial asset 200,217,862.91 22,219,323.17 3,560,861,855.40 3,783,299,041.48
1.Financial assets measured at fair value and whose
200,217,862.91 22,219,323.17 3,560,861,855.40 3,783,299,041.48
changes are included in current profit or loss
(1) Investment in debt instruments 3,560,861,855.40 3,560,861,855.40
(2) Investment in equity instruments 200,217,862.91 200,217,862.91
(3)Forex contracts 22,219,323.17 22,219,323.17
(ii)Other equity instrument investment 677,790,690.00 677,790,690.00
(iii)Account receivable financing 875,577,584.80 875,577,584.80
(iv)Other non-current assets-equity instrument
198,981,411.00 198,981,411.00
investment
(v)Other non-current assets-Other debt instrument
1,605,500,000.00 1,605,500,000.00
and equity instrument investment
Total assets sustaining measured by fair value 200,217,862.91 221,200,734.17 6,719,730,130.20 7,141,148,727.28
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 2022, the trading financial asset-equity instrument investment held by the Company refers to the
SNAT (stock code: 600841), Miracle Automation (Stock code: 002009), Lifan Technology (Stock code: 601777)
and ST Zotye (Stock code: 000980), determining basis of the market price at period-end refers to the closing price
of 30 June 2022.
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 2022, 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
106
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
closing price and liquidity discounts of 30 June 2022.
The trading financial assets that are continuously measured at the second level of fair value are swap contracts and
forward foreign exchange settlement and sale contracts. The fair value measurement is based on the fair value of
the swap contracts and forward foreign exchange settlement and sale contracts provided by the bank that signed the
contract.
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) Account receivable financing
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.
(2) Fair value of other equity instrument investment-Changes in fair value included in other comprehensive income
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.
(3) Fair value of other debt instrument and equity instrument investment
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.
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
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
Registration
Parent company Business nature Registered capital on the enterprise for ratio on the
place
parent company enterprise
Operation of
Wuxi Industry Group Wuxi RMB 5,289,262,000.00 20.23% 20.23%
state-owned assets
107
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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 tha t 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
Guokai Metal The enterprise controlled by parent company
Hebei Machinery The actual controller is the related natural person 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
Unit: RMB/CNY
Whether more than
Content of related Approved
Related party Current period the transaction limit Last Period
transaction transaction limit
(Y/N)
WFPM Goods and labor 16,947,881.11 40,000,000.00 N 18,852,456.91
RBCD Goods and labor 174,508,017.89 450,000,000.00 N 218,444,783.58
WFEC Goods 246,646,895.23 700,000,000.00 N 905,770,785.87
Robert Bosch
Goods and labor 93,906,096.78 300,000,000.00 N 115,666,003.14
Company
Changchun
Goods 342,520.00 1,500,000.00 N
Xuyang
Goods sold/labor service providing
Unit: RMB/CNY
Related party Content of related transaction Current period Last Period
WFPM Goods and labor 522,692.40 19,742,012.48
RBCD Goods and labor 1,633,269,280.49 2,250,967,590.73
WFEC Goods and labor 158,613.70 3,581,524.21
Robert Bosch Company Goods and labor 724,668,201.55 649,193,996.57
108
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Changchun Xuyang Goods 181,484.70
Hebei Machinery Goods 77,607,431.74
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: RMB/CNY
Lessee Assets type Lease income recognized in the Period Lease income recognized at last Period
WFEC Workshop 1,190,379.04
As a lessee for the Company:nil
(4) Related guarantee
Nil
(5) Related party’s borrowed/lending funds
Unit: RMB/CNY
Related party Amount of loan Starting date Expiry date Note
Borrowing
Wuxi Industry Group 5,470,000.00 2021-07-29 2022-07-21
Lending
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
Unit: RMB/CNY
Item Current period Last Period
Remuneration of key manager 4,400,000.00 6,230,000.00
(8) Other related transactions
Unit: RMB/CNY
Related party Item Current period Last Period
RBCD Payment of technical commission fee etc. 312,038.48 -
RBCD Purchasing fixed assets 1,314,941.34 528,378.37
109
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Robert Bosch Company Payment of technical commission fee etc. 130,459.36 4,123,940.70
Robert Bosch Company Sales of fix assets - 272,339.98
Robert Bosch Company Purchasing fixed assets 54,716.98 599,549.16
WFEC Sales of fix assets - 414,601.77
WFEC Energy payable- utilities 614,493.68 -
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Account receivable WFPM 4,660,960.64 10,925.29 1,233,084.39
Account receivable RBCD 385,798,620.85 56,890.49 48,954,455.60 56,805.74
Robert Bosch
Account receivable 328,749,828.77 845,939.26 236,685,486.17 426,203.85
Company
Other account Robert Bosch
692,995.30
receivable Company
Account paid in Robert Bosch
539,263.12
advance Company
Other non-current Robert Bosch
37,057,941.00 9,932,547.00
assets Company
Account receivable WFEC 64,400.00 6,440.00 6,212,780.39
Account receivable Changchun Xuyang 227,321.23 2,224.35 995,215.93
Account receivable Hebei Machinery 86,362,016.99
Account paid in
Guokai Metal 793,600.00
advance
(2) Payable item
Unit: RMB/CNY
Item Related party Ending book balance Opening book balance
Account payable WFPM 9,711,292.58 11,634,159.55
Other account payable WFPM 29,000.00 29,000.00
Account payable WFEC 302,317,621.63 299,939,408.63
Account payable RBCD 25,567,164.72 33,418,536.50
Account payable Robert Bosch Company 3,316,768.42 16,412,385.58
Account payable Guokai Metal 2.86
Other current liabilities RBCD 0.05 120,466,375.78
Other current liabilities Robert Bosch Company 3,170.62 39,165.98
Other current liabilities WFEC 1,415.05
Other account payable Wuxi Industry Group 5,475,621.94 5,476,184.14
Contractual liability RBCD 0.36 0.36
Contractual liability Robert Bosch Company 113,046.28 796,325.77
Contractual liability WFEC 10,884.98
Other account payable Guokai Metal 2,717,849.00 2,717,849.00
110
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
7. Undertakings of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. Overall situation of share-based payment
Applicable □Not applicable
Unit: RMB/CNY
Total amount of various equity instruments granted
0.00
by the company in the current period
Total amount of various equity instruments
0.00
exercised by the company in the current period
Total amount of various equity instruments
0.00
invalidated by the company in the current period
The grant price is 15.48 Yuan per share; the exercise time is from the first
trading day 24 months after the completion of the registration of the restricted
The scope of the exercise price of the stock options
stocks granted in the first tranche to the last trading day within 60 months
issued by the company at the end of the period and
from the date of completion of the registration of the restricted stock granted
the remaining period of the contract
in the first tranche, so the remaining period of the contract is 3 years and 5
months.
2. Share-based payment settled by equity
Applicable □Not applicable
Unit: RMB/CNY
Determine based on the closing price of the
Method for determining the fair value of equity instruments on the grant date
restricted stock on the grant date
Basis for determining the number of vesting equity instruments Unlocking conditions
Reasons for the significant difference between estimate in the current period and
N/A
estimate in the prior period
Cumulative amount of equity-settled share-based payments included in the
118,866,686.47
capital reserve
Total amount of expenses confirmed by equity-settled share-based payments in
35,819,280.93
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 Share 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:
111
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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
Phase I unlocked 4/10
of the first 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
Phase II unlocked 3/10
of the first 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
Phase III unlocked 3/10
of the first 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
The first batch of unlock
2019, the absolute amount will not be less than 845 million Yuan;
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.
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
The second batch of
2019, the 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
The third batch of unlocking
2019, the absolute amount will not be less than 958 million Yuan;
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
112
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Other events after balance sheet date
On February 7, 2022, the Company held the 7th session of 10th BOD to deliberated and approved the “Proposal on
Equity Acquisition and Related Transactions”. The Company intends to pay a cash with consideration of
approximately 60 million to Robert Bosch S.p.A. SocietàUnipersonale for the 100% equity acquisition of
VHIT S.p.A. ocietàUnipersonale and its wholly-owned subsidiary VHIT Automotive Systems(Wuxi) Co. Ltd held
by Robert Bosch S.p.A. SocietàUnipersonale. After the transaction, VHIT and VHCN will include in the scope of
consolidate statement.
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
113
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
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.
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 4 reporting segments as auto fuel injection system and fuel cell components, air management system and
exhaust gas treatment system and platform trading business. Accounting policy for the 4 reporting segments are
shares the same policy state in Note V
Segment assets exclude trading financial asset, other account receivables-dividend receivable, other non-current
financial assets, other equity instrument investment, long term equity investment and other retained assets, since
these assets are not related to products operation.
(2) Financial information for reportable segment
Unit: RMB/CNY
Add:
investment/inco
me measured by
Fuel injection equity, debt
Exhaust Gas Auto air instrument &
system & Fuel
Treatment management Platform trading instrument Offset of
Item cell components investment or Total
System products system products business segment
products retained assets
division division
division and
income/losses
on holdings and
disposals, etc.
Operating 3,624,502,718.3 3,303,183,248.8 7,321,835,360.9
revenue 264,983,477.58 184,662,503.01 55,496,586.76
3 2 8
Operating 2,840,070,534.1 3,007,896,515.6 6,024,571,742.7
cost 205,014,212.18 28,409,519.28
7 4 1
114
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Total 1,370,978,589.1
Profit 285,746,385.70 64,188,537.72 5,203,744.82 161,466,407.39 854,359,415.83 -14,097.70
6
1,270,424,801.9
Net profit 241,136,739.90 55,819,933.05 2,147,505.09 121,099,805.54 850,210,281.10 -10,537.27
5
Total 9,444,092,186.3 5,284,615,141.2 4,701,883,464.0 12,388,798,458. 1,318,556,132.8 31,402,279,358.
assets 901,446,241.17
5 5 0 11 3 05
Total 2,940,523,194.0 3,878,743,245.8 4,580,783,658.4 11,823,176,560.
liabilities 452,454,237.45 -344,716.26 28,983,058.99
3 1 6 50
(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: RMB/CNY
Ending balance
Category Book balance Bad debt provision
Provision Book value
Amount Ratio Amount
ratio
Account receivable with bad debt
7,705,639.71 0.82% 7,705,639.71 100.00%
provision accrual on a single basis
Including:
Account receivable with bad debt
928,422,567.55 99.18% 3,062,064.17 0.33% 925,360,503.38
provision accrual on portfolio
Including:
Receivables from clients 742,137,856.93 79.28% 3,062,064.17 0.41% 739,075,792.76
Receivables from internal related
186,284,710.62 19.90% 186,284,710.62
parties
Total 936,128,207.26 100.00% 10,767,703.88 1.15% 925,360,503.38
Unit: RMB/CNY
Opening balance
Category Book balance Bad debt provision
Provision Book value
Amount Ratio Amount
ratio
Account receivable with bad debt
7,803,945.24 1.42% 7,803,945.24 100.00%
provision accrual on a single basis
115
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Including:
Account receivable with bad debt
540,453,844.97 98.58% 3,495,954.75 0.65% 536,957,890.22
provision accrual on portfolio
Including:
Receivables from clients 324,001,494.50 59.10% 3,495,954.75 1.08% 320,505,539.75
Receivables from internal related
216,452,350.47 39.48% 216,452,350.47
parties
Total 548,257,790.21 100.00% 11,299,899.99 2.06% 536,957,890.22
Bad debt provision accrual on single basis: 7,705,639.71 yuan
Unit: RMB/CNY
Ending balance
Name Bad debt
Book balance Provision ratio Accrual causes
provision
BD bills 7,201,691.00 7,201,691.00 100.00% Have difficulty in collection
Tianjin LOVOL Engines Co., Ltd. 503,945.24 503,945.24 100.00% Have difficulty in collection
Quanchai Engine Co., Ltd. 3.47 3.47 100.00% Have difficulty in collection
Total 7,705,639.71 7,705,639.71
Bad debt provision accrual on portfolio:3,062,064.17 yuan
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt provision Provision ratio
Within 6 months 729,344,451.43
6 months to 1 year 8,379,147.23 837,914.72 10.00%
1-2 years 2,039,943.17 407,988.63 20.00%
2-3 years 930,257.13 372,102.85 40.00%
Over 3 years 1,444,057.97 1,444,057.97 100.00%
Total 742,137,856.93 3,062,064.17
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: RMB/CNY
Account age Ending balance
Within 1 year (including 1 year) 924,008,309.28
Including: Within 6 months 915,629,162.05
6 months to 1 year 8,379,147.23
1-2 years 2,543,888.41
2-3 years 930,257.13
Over 3 years 8,645,752.44
3-4 years 8,645,752.44
Total 936,128,207.26
(2) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
116
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Amount changed in the period Ending balance
Category Opening balance Collected or
Accrual Charge off Other
reversal
Bad debt provision 11,299,899.99 532,196.11 10,767,703.88
Total 11,299,899.99 532,196.11 10,767,703.88
Important bad debt provision collected or switch back: nil
(3) Account receivable actual charge off in the Period
Nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Ending balance of Ratio in total ending balance of Ending balance of bad debt
Name
account receivable account receivables reserve
RBCD 385,781,400.37 41.21% 56,890.49
Custom 2 132,064,675.11 14.11% 331,649.87
WFTR 80,332,439.40 8.58%
WFCA 63,975,039.80 6.83%
Robert Bosch Company 48,039,920.31 5.13% 2,717.43
Total 710,193,474.99 75.86%
(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 receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Interest receivable 102,777.78 113,055.56
Dividend receivable 560,425,376.21 26,718,900.00
Other account receivable 3,276,834,556.22 177,293,562.07
Total 3,837,362,710.21 204,125,517.63
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Interest receivable of unified-borrowing & unified-lending 102,777.78 113,055.56
Total 102,777.78 113,055.56
117
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□Applicable Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
Zhonglian Automobile Electronics Co., Ltd. 194,400,000.00
RBCD 366,025,376.21
WFAM 26,718,900.00
Total 560,425,376.21 26,718,900.00
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□Applicable Not applicable
(3) Other account receivable
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Staff loans and petty cash 1,041,780.00 400,080.00
Balance of related party in the consolidate scope 3,266,686,521.72 169,746,521.72
Security deposit 3,259,262.41 1,518,640.00
Withholding the social security provident funds 6,202,190.99 5,926,527.66
Other 7,328.10 9,364.69
Total 3,277,197,083.22 177,601,134.07
2) Accrual of bad debt provision
Unit: RMB/CNY
Phase I Phase II Phase III
Expected Expected credit losses for Expected credit losses for
Bad debt provision credit losses the entire duration the entire duration (with Total
over next 12 (without credit credit impairment
months impairment occurred) occurred)
Balance on Jan. 1, 2022 307,572.00 307,572.00
Balance of Jan. 1, 2022 in the period
Current accrual 54,955.00 54,955.00
Balance on Jun. 30, 2022 362,527.00 362,527.00
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
118
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
By account age
Unit: RMB/CNY
Account age Ending balance
Within 1 year (including 1 year) 3,240,762,941.50
Including: Within 6 months 3,226,513,391.50
6 months to 1 year 14,249,550.00
1-2 years 21,843,906.00
2-3 years 14,552,695.72
Over 3 years 37,540.00
3-4 years 37,540.00
Total 3,277,197,083.22
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrual Charge off Other
reversal
Bad debt provision 307,572.00 54,955.00 362,527.00
Total 307,572.00 54,955.00 362,527.00
4) Other receivables actually Charge off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Ratio in
Ending
total ending
balance of
Enterprise Nature Account age balance of Account age
bad debt
other
reserve
receivables
Balance of related party in Within 6
WFTR 3,214,940,000.00 98.10%
the consolidate scope months
Balance of related party in Within 2
WFCA 36,193,906.00 1.10%
the consolidate scope years
Balance of related party in Within 3
WFMA 15,552,615.72 0.47%
the consolidate scope years
ZKH Industrial Supermarket
Security deposit 1,000,000.00 1-2 years 0.03% 200,000.00
(Shanghai) Co., Ltd.
Within 6
Wuxi Youlian Power Co., Ltd. Security deposit 750,000.00 0.02%
months
Total 3,268,436,521.72 99.72% 200,000.00
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
119
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
3. Long-term equity investment
Unit: RMB/CNY
Ending balance Opening balance
Item Depreciati Depreciati
Book balance on Book value Book balance on Book value
reserves reserves
Investment for
2,271,500,668.51 2,271,500,668.51 2,106,415,908.37 2,106,415,908.37
subsidiary
Investment for
associates and 4,568,844,855.75 4,568,844,855.75 4,760,866,320.19 4,760,866,320.19
joint venture
Total 6,840,345,524.26 6,840,345,524.26 6,867,282,228.56 6,867,282,228.56
(1) Investment for subsidiary
Unit: RMB/CNY
Current changes (+, -) 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 185,974,031.01 3,234,676.26 189,208,707.27
WFLD 468,968,346.39 3,775,184.78 472,743,531.17
WFMA 170,998,252.32 994,187.38 171,992,439.70
WFCA 222,778,790.43 708,774.70 223,487,565.13
WFTR 33,924,529.85 318,710.84 34,243,240.69
WFSC 51,150,646.86 428,118.96 51,578,765.82
WFTT 238,112,165.62 1,398,521.94 239,510,687.56
WFAM 82,454,467.99 82,454,467.99
WFDT 54,116,034.53 28,541.28 54,144,575.81
SPV 597,938,643.37 154,198,044.00 752,136,687.37
Total 2,106,415,908.37 165,084,760.14 2,271,500,668.51
(2) Investment for associates and joint venture
Unit: RMB/CNY
Current changes (+, -)
A Othe Endi
dd r Ot ng
iti Ca com he bala
on pit preh r Impa nce
Opening balance Investment Cash dividend Ending balance of
Enterprise al al ensi eq irme Ot
(book value) gain/loss or profit (book value) depr
in re ve ui nt he
recognized announced to eciat
ve du inco ty accr r
under equity issued ion
st cti me ch ual
m on adju an reser
en stme ge ves
t nt
I. Joint venture
II. Associated enterprise
565,073,831.0 732,050,752.4
RBCD 3,193,389,537.44 3,026,412,616.04
3 3
Zhonglian 168,241,541.9 194,400,000.0
1,378,575,785.77 1,352,417,327.70
Automobile 3 0
WFPM 45,845,041.36 5,479,693.04 51,324,734.40
ChelianTian
143,055,955.62 -4,365,778.01 138,690,177.61
xia
120
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
734,429,287.9 926,450,752.4
Subtotal 4,760,866,320.19 4,568,844,855.75
9 3
734,429,287.9 926,450,752.4
Total 4,760,866,320.19 4,568,844,855.75
9 3
(3) Other explanation
Nil
4. Operating income and cost
Unit: RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main business 2,262,029,970.36 1,784,089,964.47 3,010,827,415.47 2,214,544,926.38
Other business 149,159,237.68 135,896,195.07 210,116,060.96 188,982,608.49
Total 2,411,189,208.04 1,919,986,159.54 3,220,943,476.43 2,403,527,534.87
Information related to performance obligations: N/A
5. Investment income
Unit: RMB/CNY
Item Current period Last Period
Investment income from holding trading financial asset 100,780,374.04 3,468,760.80
Investment income in subsidiaries 55,881,129.25
Investment income in joint ventures and associated enterprises 734,429,287.99 831,855,487.43
Investment income of financial products 137,428,400.49
Total 835,209,662.03 1,028,633,777.97
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
Applicable □Not applicable
Unit: RMB/CNY
Item Amount Note
Gains/losses from the disposal of non-current asset -285,098.92
Governmental grants reckoned into current gains/losses (except for those with normal operation
business concerned, and conform to the national policies & regulations and are continuously enjoyed 26,095,621.93
at a fixed or quantitative basis according to certain standards)
Profit and loss of assets delegation on others’ investment or management 508,215.09
Except for the effective hedging operations related to normal business operation of the Company,
the gains/losses of fair value changes from holding the trading financial assets and trading financial
-69,141,331.87
liabilities, and the investment earnings obtained from disposing the trading financial asset, trading
financial liability and financial assets available for sale
Switch back of provision for depreciation of account receivable which was singly taken
depreciation test 593,396.00
Other non-operating income and expenditure except for the aforementioned items 197,098.29
Less: Impact on income tax -6,602,079.68
121
无锡威孚高科技集团股份有限公司 2022 年半年度财务报告
Impact on minority shareholders’ equity 852,439.65
Total -36,282,459.45 --
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring
profit(gain)/loss
□Applicable Not applicable
2. ROE and earnings per share(EPS)
Earnings per share(EPS)
Weighted
Profits during report period Basic earnings per Diluted earnings per
average ROE
share (RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the
6.24% 1.25 1.25
Company
Net profits belong to common stock stockholders of the
6.43% 1.28 1.28
Company after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable Not applicable
(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
122
