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公司公告

苏威孚B:2022年半年度报告(英文版)2022-08-23  

                        WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.

        SEMI-ANNUAL REPORT 2022




               August 2022
        Section I. Important Notice, Contents and Interpretation

Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading
statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
Wang Xiaodong, Principal of the Company, Ou Jianbin, person in charge of accounting
works and Ou Jianbin, person in charge of accounting organ (accounting principal)
hereby confirm that the Financial Report of 2022 Semi-Annual Report is authentic,
accurate and complete.

All directors are attend the Meeting for the Report deliberation.

The forward-looking statements with future plans involved in the Report do not
constitute a substantial commitment for investors. Investors and related parties should
maintain sufficient risk awareness and investors are advised to exercise caution of
investment risks.

The Company may face main risks in future operation and countermeasures are
describes in the “Management Discussion and Analysis”, the investors are advised to
check them out.

The Company has no plan of cash dividend distributed, no cash bonus and capitalizing
of common reserves either carried out.



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



                                                                                         1
                                                           Contents



Section I. Important Notice, Contents and Interpretation ............................................................. 1

Section II. Company Profile and Main Financial Indexes ............................................................. 5

Section III. Management Discussion and Analysis ......................................................................... 8

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

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

Section VI. Important Matters ....................................................................................................... 28

Section VII. Changes in Shares and Particulars about Shareholders ......................................... 38

Section VIII. Preferred Stock .......................................................................................................... 42

Section IX. Corporate Bonds .......................................................................................................... 43

Section X. Financial Report ............................................................................................................ 44




                                                                                                                                         2
                            Documents Available for Reference


I. Financial statement carrying the signatures and seals of person in charge of the company, principal of the
accounting works and person in charge of accounting organ (accounting Supervisor);
II. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC during the reporting period;
III. The Semi-Annual report summary published on China Securities Journal, Securities Times and Hong Kong
Commercial Daily during the Period.
IV. Place for preparation: Office of the BOD of the Company




                                                                                                               3
                                           Interpretation

                  Items              Refers to                                    Contents

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

Weifu Group                          Refers to   Wuxi Weifu Group Co., Ltd.

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

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

RBCD                                 Refers to   Bosch powertrain Co., Ltd

WFLD                                 Refers to   WUXI WEIFU LIDA CATALYTIC CONVERTER CO., LTD.

WFJN                                 Refers to   NANJING WEIFU JINNING CO., LTD.
                                                 NINGBO WEIFU TIANLI TURBOCHARGING TECHNOLOGY
WFTT                                 Refers to
                                                 CO.,LTD.
WFCA                                 Refers to   WUXI WEIFU CHANGAN CO.,LTD.

WFMA                                 Refers to   WUXI WEIFU MASHAN FUEL INJECTION EQUIPMENT CO., LTD.

WFTR                                 Refers to   WUXI WEIFU INTERNATIONAL TRADE CO.,LTD.

WFSC                                 Refers to   WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.,LTD.

WFAM                                 Refers to   WUXI WEIFU AUTOCAM PRECISION MACHINERY CO.,LTD.

WFDT                                 Refers to   WUXI WEIFU E-DRIVE TECHNOLOGIES CO., LTD.

WFAS                                 Refers to   WUXI WEIFU AUTOSMART SEATING SYSTEM CO., LTD.

SPV                                  Refers to   Weifu Holding ApS

IRD                                  Refers to   IRD Fuel Cells A/S

Borit                                Refers to   Borit NV

WFFC                                 Refers to   Wuxi Weifu Qinglong Power Technology Co., Ltd.

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

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

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

Guokai Metal                         Refers to   Wuxi Guokai Metal Resources Co., Ltd.

Hebei Machinery                      Refers to   Hebei Machinery Import and Export Co., Ltd

CSRC                                 Refers to   China Securities Regulatory Commission

SZSE                                 Refers to   Shenzhen Stock Exchange

The reporting period                 Refers to   1 January 2022 to 30 June 2022




                                                                                                          4
             Section II Company Profile and Main Financial Indexes

I. Company profile

 Short form of the stock                                WFHT, Su Weifu-B          Stock code           000581, 200581

 Stock exchange for listing                             Shenzhen Stock Exchange

 Name of the Company (in Chinese)                       无锡威孚高科技集团股份有限公司

 Short form of the Company (in Chinese if applicable)   威孚高科

 Foreign name of the Company (if applicable)            WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
 Short form of foreign name of the Company (if
                                                        WFHT
 applicable)
 Legal representative                                   Wang Xiaodong


II. Person/Way to contact

                                            Secretary of the Board                        Rep. of security affairs

 Name                          Liu Jinjun                                     Xu Kan

 Contact add.                  No.5 Huashan Road, Xinwu District, Wuxi        No.5 Huashan Road, Xinwu District, Wuxi

 Tel.                          0510-80505999                                  0510-80505999

 Fax.                          0510-80505199                                  0510-80505199

 E-mail                        Web@weifu.com.cn                               Web@weifu.com.cn


III. Others

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ApplicableNot applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in Annual Report 2021.

2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not
□ApplicableNot applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
and preparation place for semi-annual report have no change in reporting period, found more details in Annual
Report 2021.


                                                                                                                        5
3.Other relevant information

Whether other relevant information has changed in the reporting period
□ApplicableNot applicable


IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes No
                                                                                                     Changes in the current period
                                                  Current period       Same period of last year    compared with the same period of
                                                                                                        the previous year (+,-)

 Operation income (RMB)                           7,321,835,360.98            9,037,691,756.24                                 -18.99%
 Net profit attributable to shareholders of
                                                  1,232,762,710.95            1,645,389,487.32                                 -25.08%
 the listed company(RMB)
 Net profit attributable to shareholders of
 the listed company after deducting non-          1,269,045,170.40            1,702,220,554.09                                 -25.45%
 recurring gains and losses(RMB)
 Net cash flows arising from operating
                                                 -2,493,982,044.89               80,191,609.17                            -3,210.03%
 activities (RMB)
 Basic earnings per share (RMB/Share)                          1.25                        1.66                                -24.70%

 Diluted earnings per share (RMB/Share)                        1.25                        1.66                                -24.70%

 Weighted average ROE                                        6.24%                       8.72%                                   -2.48%
                                                                                                      Changes at end of the current
                                                Current period-end      period-end of last year     period compared with the end of
                                                                                                           previous year (+,-)

 Total assets (RMB)                              31,402,279,358.05           27,970,858,427.84                                   12.27%
 Net assets attributable to shareholder of
                                                 18,976,164,813.52           19,398,607,689.65                                   -2.18%
 listed company (RMB)


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

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

□ApplicableNot applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


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

□ApplicableNot applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.



                                                                                                                                          6
VI. Items and amounts of extraordinary profit (gains)/loss

Applicable □Not applicable

                                                                                                                         Unit: RMB/CNY

                                             Item                                                      Amount                Note
 Gains/losses from the disposal of non-current asset (including the write-off that accrued
                                                                                                         -285,098.92
 for impairment of assets)
 Governmental grants reckoned into current gains/losses (except for those with normal
 operation business concerned, and conform to the national policies & regulations and are              26,095,621.93
 continuously enjoyed 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
                                                                                                      -69,141,331.87
 and trading financial 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
                                                                                                          593,396.00
 depreciation test
 Other non-operating income and expenditure except for the aforementioned items                           197,098.29

 Less: Impact on income tax                                                                            -6,602,079.68

      Impact on minority shareholders’ equity (post-tax)                                                 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
□ApplicableNot 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 theQ&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
□ApplicableNot applicable
The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/lossdefined as recurring
profit(gain)/loss




                                                                                                                                     7
                  Section III Management Discussion and Analysis

I. Main businesses of the company in the reporting period
(1) Main business of the Company
Main business of the Company including the R & D, production and sales of automotive core components. During
the reporting period, the main products were diesel fuel injection system products, and exhaust gas treatment system
products and air management system products. At the same time, the core component products of the fuel cell have
been produced and sold in small quantities.
1. Diesel fuel injection system products are widely used for diesel engines of a variety of power, supporting various
types of trucks, passenger cars, construction machinery, marine machinery, agricultural machinery, generator sets,
etc., and satisfy the National VI and non-road National IV emissions regulations for vehicles. We have been taking
a leading position in the industry in terms of product variety, manufacturing scale, market share, etc. While doing a
good job in matching with domestic main engines, some products are exported to the Americas, Southeast Asia, the
Middle East and other regions.
2. Exhaust gas treatment system products can meet the National VI and non-road National IV emission regulations
for vehicles, of which the technical level, market scale and production capacity are in a leading position in China,
and are widely used in passenger cars, commercial vehicles, non-road machinery, etc., and can provide strong
support for the upgrading of the engine manufacturers' products.
3. Air management system products (turbochargers) can meet the National VI and non-road National IV emission
regulations for vehicles, covering commercial vehicles, passenger vehicles, construction machinery, agricultural
machinery, generator sets and other fields, and supporting major domestic engine manufacturers and OEMs.
4. The fuel cell core components include "one membrane and two plates" (membrane electrode, graphite bipolar
plate, metal bipolar plate) and BOP key components, etc., supporting domestic and foreign fuel cell stacks and
system manufacturers.

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

(3) Development of the industry
The industry in which the company operates belongs to the automotive components manufacturing industry, which
is closely related to the development of the auto industry. In the first half of 2022, China's auto industry faced with

                                                                                                                     8
triple pressures from supply shock, demand contraction, and weakening expectations. The shortage of chip and the
rise in the price of raw materials for power batteries, especially the outbreaks of the pandemic in Jilin, Shanghai and
other regions, caused a serious impact on the supply chain of China's automobile industry chain. From mid to late
March to April, the production and sales of automobiles had a sharp decline, posing severe challenges to the steady
growth of the industry. From January to June 2022, China produced 12.117 million automobiles and sold 12.057
million automobiles, a year-on-year decrease of 3.7% and 6.6% respectively.
1. Commercial vehicle market
From January to June 2022, produced 1.683 million commercial vehicles and sold 1.702 million commercial
vehicles, a year-on-year decrease of 38.5% and 41.2% respectively. In terms of production and sales of different
models, produced 176,000 passenger cars and sold 180,000 passenger cars, declined by 31.8% and 30.5% on a year-
on-year basis, respectively; produced 1.507 million trucks and sold 1.522 million trucks, a year-on-year decrease of
39.3% and 42.2% respectively.
The first half of last year, driven by environmental protection policies, enterprises seized the opportunity for
switching emission standards between the National V and the National VI, resulting in a long-term truck purchase
peak, the high production of heavy-duty National V diesel vehicles, which caused insufficient demand, there were
still a small number of vehicles to be sold, in addition, the sales of blue-plate light truck inventory vehicles was also
relatively slow. Moreover, in the first half of this year, due to the impact of the pandemic, the start of infrastructure
construction was slow, and the construction speed was lower than expected, so the production and sales of trucks
fell sharply on a year-on-year basis. At the same time, the pandemic in the first half of the year had a great impact
on the demand for tourism, passenger cars and city buses, and the passenger car market continued to be sluggish.
2. Passenger car market
From January to June 2022, produced 10.434 million passenger vehicles and sold 10.355 million passenger vehicles,
an increase of 6.0% and 3.4% on a year-on-year basis, respectively. Production and sales ended a decline, and the
overall level returned to normal. In terms of vehicle models, sedans and SUVs increased slightly on a year-on-year
basis, while other models still had a decline.
Judging from the performance of the passenger car market in the first half of the year, consumer demand has been
suppressed to a certain extent due to the pandemic. Since the end of May, the state and local governments have
successively issued a series of powerful policies to stimulate consumption, providing obvious supports for the rapid
recovery and improvement of consumer confidence.
3. New energy vehicle market
From January to June 2022, produced 2.661 million new energy vehicles and sold 2.6 million new energy vehicles,
both a year-on-year increase of 1.2 times, and a market share of 21.6%. Among them, the sales of new energy
passenger vehicles accounted for 24.0% of the total sales of passenger vehicles, and the proportion of new energy
vehicles in Chinese brand passenger vehicles has reached 39.8%.
4. Off road market
In the first half of 2022, the market demand for construction machinery and agricultural machinery will decrease
due to the slowdown of macroeconomic growth, repeated COVID-19, insufficient effective commencement rate of
projects, adjustment of agricultural machinery subsidy policies and other factors. From January to June 2022, the

                                                                                                                       9
sales volume of diesel internal combustion engines for construction machinery was 450000, a year-on-year decrease
of 23.8%; The sales volume of diesel internal combustion engines for agricultural machinery was 650000, a year-
on-year decrease of 24.8%.
(Note: the above industry data are from CAAM and CICEIA.)

(4) Business of the Company in reporting period
Since this year, facing the rigorous macroeconomic and downward pressure of the auto industry, the Company has
implemented the annual work targets conscientiously, we achieved a performance better than the industry standard
by actively carried out various measures to cope with the challenges. During the reporting period, operation revenue
from the Company was 7.322 billion yuan, down 18.99% from the same period of last year; the net profit attributable
to shareholder of listed company amounted to 1.233 billion yuan, 25.08% drop from the same period of previous
year.
Main work carried out by the company during the reporting period:
1. Improved marketing management and accelerated market expansion. Exhaust gas treatment system: steadily
expanded the hybrid market, and key platform projects had a high acquisition rate. Air management system: air
intake products have entered the supply system of many new customers and gradually acquired projects; gasoline
superchargers achieved mass production, and the sales had a rapid growth. Diesel fuel injection system: the T4 Off-
road market of dispensing pump expanded vigorously, with a high coverage rate of major customers and projects.
seized the export order market, mechanical products grew rapidly, and Inline pump exports far exceeded
expectations. New business products: continued to expand the leading enterprise customers of the electric drive
parts business; accelerated the hydrogen fuel cell business, and newly acquired a number of domestic and foreign
customer projects such as "one membrane and two plates", hydrogen circulating pumps, and valve BOP products;
promoted 3D radar mass production projects in an orderly manner, and focused on expanding 4D radar customer
projects; reached cooperation intentions with some customers in wheel motor business.
2.Strengthened technological innovation and promoted new product research and development. Diesel fuel injection
system: dual-fuel direct injection products jointly developed localization projects with customers, and completed
the first round of customer engine performance tests; developed platform projects such as methanol pumps and
methanol injectors; carried out research on hydrogen internal combustion engine injection and other projects.
Exhaust gas treatment system: in terms of passenger vehicles, completed the development of the light-duty diesel
vehicle purifier platform stage has been , and the batch production of key projects of several key customers has been
completed; in terms of commercial vehicles, completed the development and production conversion of a number of
National VI platforms and customer projects; for non-road, completed the announcement certification of customers
and the development of key projects for many customers. Air intake system: National VI diesel engine and natural
gas projects were progressing in an orderly manner; the gasoline supercharger products achieved SOPs for several
projects, and successfully obtained the hybrid projects of major customers; the 48V electric supercharger completed
the A sample review. At the same time, key R&D projects such as hydrogen fuel cells and intelligent network
connections were progressing steadily as planned.
3. Optimized strategic planning and promoted investment cooperation. Optimized the company's new strategic
blueprint, and formed a new strategic pattern for the comprehensive development of the four major sectors of

                                                                                                                  10
"energy saving and emission reduction", "green hydrogen energy", "smart electric" and "other core components";
completed the global capacity planning and production capacity investment planning of hydrogen fuel cells,
formulated strategic development planning for PEM water electrolysis hydrogen production system equipment, and
carried out new energy industrial park project planning. Completed the strategic business product planning for the
electric drive core parts business, thermal management system and core parts business, and continued to optimize
the development planning for the millimeter-wave radar business. Comprehensively promoted global capacity
building investment in hydrogen energy business, completed investment in R&D and capacity expansion of IRD
and Borit; successively established hydrogen energy divisions and hydrogen fuel cell joint ventures, and accelerated
capacity building in the Asia-Pacific region; implemented thermal management system and parts business
investment cooperation, and VH M&A projects were progressing in an orderly manner; participated in the
investment of industrial funds related to automobiles, and sought cooperation opportunities in the upstream and
downstream industry chains. In the fields of water electrolysis for hydrogen production from renewable energy
sources, intelligent network connection and other fields, we investigated potential cooperation projects, and actively
planned for cooperation possibilities.
4.Strengthened quality management and promoted information construction. Deepened the effective
implementation of Q11 on site, built a Q11 training base; established development quality management capabilities,
improved the identification of quality valves for software evaluation needs, introduced positive development quality
tools, improved software FMEA and special feature management maturity; created a special follow-up re-
examinations mechanism for quality improvement; organized the product review of 17 types of core products;
promoted the launch of the measuring instrument management system in the business department, and unified and
standardized the management requirements for measuring instruments. The project management system was
released to promote the point-to-point connection of the whole process of engineering projects; the construction of
R&D building, new energy industry bases and other projects were steadily advanced. The SAP S4 HANA upgrade
project was officially launched, realizing the upgrade of application version and the migration of historical data, and
optimizing the system capabilities; the process management system project was launched, realizing the systematic
application of products from design to process management, and standardizing the management process of process
data.; the IT service platform has been operating online.
5. Promoted management upgrade and improved operating efficiency. Completed the performance review and
signing of the company’s organization at all levels, cooperated with the budget management to complete the
business plan and budget succession, and formed an optimization plan; promoted the inspection, tracking and
correction of business monitoring, analysis, and performance of the business department. Optimized the
procurement system, improved the procurement system documents, upgraded the supplier classification, and refined
the supplier performance management plan, so as to ensure the continuous and efficient operation of the
procurement business. Strengthened the management of inventory and slow-moving materials, strictly reviewed the
production scheduling plan of slow-moving products and conducted regular inspections. Continued to promote the
operation of the company's risk control compliance internal audit trinity and three risk prevention and control
management mechanisms. Strengthened the introduction of talents related to strategic new businesses, and
optimized the allocation of talent teams; multi-dimensionally promoted the "San Hang Yi Jiang” talent capacity

                                                                                                                    11
development project, continued to carry out school-enterprise cooperation, and strengthened the training of
industrial workers.


II. Core Competitiveness Analysis

1. Industry and brand advantages. The company was established in 1958, after more than 60 years of development,
it has become a famous manufacturer of auto parts at home, and has established long-term and stable cooperative
relations with major domestic main engine factories and vehicle manufacturers, the existing automobile core
components main products (including diesel fuel injection system, exhaust gas treatment system, air management
system) have strong market competitiveness and higher market share. The company is a pacesetter enterprise in
China's internal combustion engine industry, and ranks in the top 30 enterprises in China’s auto parts industry.
2. Technology and product advantages. The Company is a national high-tech enterprise. It has scientific research
platforms such as "National Enterprise Technology Center", "National High-tech Research and Development Plan
Achievement Industrialization Base", "Post-Doctoral Scientific Research Workstation", "Jiangsu Postgraduate
Workstation" and number of provincial-level engineering and technological research centers, provincial-level
engineering laboratories, and other research and development institutions, mainly focus on fuel injection systems,
exhaust gas treatment systems, and air management systems to conduct technical research and product development.
The Company has mastered a number of core patented technologies, the main product technical indicators are at the
leading level in the industry. In recent years, the Company focuses on the strategic layout in the fields of green
hydrogen and smart electric, established a new energy and network technology research institute, built a hydrogen
energy fuel cell test center, and formed technical research and development capabilities of hydrogen fuel cell core
components and intelligent network vehicle products.
3.Management and manufacturing advantages. The Company has a complete organizational structure and
management systems process, and has built a financial sharing platforms, which can realize the effective migration
and stable operation of organization & personnel, business & accounting; The established human resources
information system platforms can ensure the timely and accurate standardization of organization, personnel, salary
and attendance; built a purchase sharing system, opened up the information interconnection of enterprises and
suppliers, and achieved the closed-loop management of the procurement process; carried out the Weifu Production
System (WPS) with lean philosophy, established the quality management system with the whole process, and has
strong capabilities in production and manufacturing, quality assurance, cost control and product delivery.The
Company focuses on intelligent manufacturing, continues to build intelligent factories with Weifu characteristics,
and promotes the application of cloud computing and 5G networks, which can strongly support the Company’s
future business development.
4. Advantages in marketing and service. The Company has a stable, professional and experienced marketing team
that can provide targeted support and services according to customer needs, and customer relationships are
harmonious. For long-term strategic customers, the company has established a four-in-one marketing collaboration
organization composed of leaders, key account managers, marketing departments, and business departments. The
Company’s management exchanges regular visits to promote exchanges and cooperation.The Company has a
relatively perfect after-sales service system, has built after-sales service network and intelligent service platform,
                                                                                                                    12
established special maintenance technology service stations nationwide to regularly provide end users with the
training of operation and maintenance, fault analysis and judgment and provide customers with fast, timely and
professional comprehensive after-sales services.
5.Talent team advantage. The Company's management team has extensive experience and a good industry
reputation in the Automobile components industry. The Company pays attention to the growth of employees and
the construction of a core talent team. After years of accumulation, it has accumulated a group of professional and
high-quality management and technical personnel, established a reasonable talent echelon, and provided strong
manpower resource guarantee for the Company's long-term and stable development. The Company's human
resource management system is relatively complete, continuously optimizing various human resource management
systems to provide a fair value realization platform for employees' career development. The Company pays attention
to the service and care of employees, improves the service experience of employees through the establishment of
employee self-service platform,and creates a working environment with warmth and sense of belonging.
6. Advantages of international cooperation. The Company is committed to the core auto parts industry, and has
continued to carry out in-depth cooperation with domestic and foreign strategic partners for a long time. The
Company began to cooperate with the industry giant Robert Bosch Company in 1984, established a long-term and
stable cooperative relationship, and continued to expand cooperation in new business areas, the cooperation model
between the two parties has become a model in the industry. At the same time, the Company has established joint
ventures with Autocam Corporation of the United States and Schmidt Corporation of Germany, and has cooperated
closely in the field of high-end precision manufacturing. Through long-term cooperation with well-known European
and American enterprises, the Company has cultivated a group of middle and senior management and technical
personnel who have international communication skills, international vision, and familiarity with international
standards and have mastered the international advanced R&D process design, quality control and production
management capabilities, which accelerated the sound development of the Company's business and promoted the
development in international business and market.
7. Excellent corporate culture. The Company takes “quality and intelligence driving a better life”as a mission and
"100-year Weifu auto core parts industry expert" as a vision, fulfills the core value of "focus, innovation,
responsibility, integration", insists on the enterprise spirit of "doing practical things, daring to act, being good at
cooperation, bravely contending for the first". Created a cultural system of "quality and intelligence", "quality" and
"intelligence" is the Company's cultural double engine, reflecting the persistence of the original aspiration and the
pursuit of the future. The excellent corporate culture makes a sustainable operation for the Company, provides strong
support for the Company to become a trustworthy and respected industrial experts, and plays a positive role in
achieving the Company's strategic objectives.


III. Main business analysis

Overview

See the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
                                                                                                       Unit: RMB/CNY
                                                                                                                    13
                                                             Same period of last     y-o-y changes
                                        Current period                                                             Reasons
                                                                    year                 (+,-)
 Operation revenue                     7,321,835,360.98        9,037,691,756.24            -18.99%
 Operation cost                        6,024,571,742.71        7,497,917,157.07            -19.65%
 Sales expenses                           79,020,592.43          111,193,615.56            -28.93%
 Administrative expenses                 277,212,254.79          266,226,378.32              4.13%
 Financial cost                           29,774,064.57           15,935,073.06            86.85%     Increase in borrowings
 Income tax expense                      100,553,787.21          117,972,661.22            -14.77%
 R&D investment                          289,631,376.50          249,583,255.99            16.05%
                                                                                                      the purchase volume increase
 Net cash flow arising from
                                      -2,493,982,044.89           80,191,609.17         -3,210.03%    due to the development of
 operation activities
                                                                                                      platform trade business
 Net cash flow arising from                                                                           Increase in cash flow due to
                                       1,556,579,998.88          951,130,720.49            63.66%
 investment activities                                                                                the maturity of financial
 Net cash flow arising from
                                       1,338,690,663.84         -496,851,948.29           369.43%     Increase in borrowings
 financing activities
 Net increase of cash and cash
                                         396,766,366.07          531,062,209.58            -25.29%
 equivalent

Major changes on profit composition or profit resources in reporting period
√Applicable □Not applicable
During the reporting period, WFTR, a wholly-owned subsidiary of the company, actively expanded the platform trade business and
achieved good results.
Constitution of operation revenue
                                                                                                                 Unit: RMB/CNY

                                              Current period                           Same period of lat year               Increase/d
                                                                                                                             ecrease y-
                                                         Ratio in operation                          Ratio in operation
                                      Amount                                        Amount                                    o-y(+,-)
                                                              revenue                                     revenue
 Total operation revenue            7,321,835,360.98                 100%     9,037,691,756.24                    100%         -18.99%

 According to industries

 Automobile components              6,928,141,770.13               94.63%     8,767,778,890.21                   97.01%        -20.98%

 Platform trading business           184,662,503.01                 2.52%                      --                      --            --

 Other business                      209,031,087.84                 2.85%          269,912,866.03                 2.99%        -22.56%

 According to products

 Fuel injection system              3,439,477,050.57               46.98%     3,998,550,461.69                   44.24%        -13.98%
 Exhaust Gas Treatment
                                    3,228,708,237.85               44.10%     4,379,307,721.36                   48.46%        -26.27%
 System
 Air management system               259,956,481.71                 3.55%          389,920,707.16                 4.31%        -33.33%

 Platform trading business           184,662,503.01                 2.52%                      --                      --            --

 Other business                      209,031,087.84                 2.85%          269,912,866.03                 2.99%        -22.56%

 According to region

 Domestic                           7,056,320,042.47               96.37%     8,782,591,522.28                   97.18%        -19.66%

 Foreign                             265,515,318.51                 3.63%          255,100,233.96                 2.82%          4.08%

The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
Applicable □Not applicable


                                                                                                                                      14
                                                                                                                         Unit: RMB/CNY
                                                                                                                              Increase/d
                                                                                            Increase/decre     Increase/dec
                                                                                                                              ecrease of
                                                                               Gross            ase of            rease of
                                Operation revenue      Operation cost                                                            gross
                                                                             profit ratio     operation          operation
                                                                                                                              profit ratio
                                                                                            revenue y-o-y       cost y-o-y
                                                                                                                                y-o-y
 According to industries
 Automobile components            6,928,141,770.13     5,858,547,460.17         15.44%           -20.98%           -19.35%        -1.71%
 Platform trading business          184,662,503.01                      --     100.00%                  --               --             --
 According to products
 Fuel injection system            3,439,477,050.57     2,715,439,179.66         21.05%           -13.98%           -11.13%        -2.53%
 Exhaust Gas Treatment
                                  3,228,708,237.85     2,940,323,990.54          8.93%           -26.27%           -25.54%        -0.90%
 System
 Air management system              259,956,481.71       202,784,289.97         21.99%           -33.33%           -21.99%      -11.35%
 Platform trading business          184,662,503.01                      --     100.00%                  --               --             --
 According to region
 Domestic                         6,847,288,954.63     5,606,995,023.25         18.11%           -19.56%           -20.09%         0.53%
 Foreign                            265,515,318.51       251,552,436.92          5.26%             4.08%             1.47%         2.44%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest
one year’s scope of period-end
□ApplicableNot applicable
Reasons for y-o-y relevant data with over 30% changes
Applicable □Not applicable

1. During the reporting period, affected by the macroeconomic situation and the downturn of the automobile industry, the sales of six
cylinder superchargers and natural gas superchargers in the intake system products decreased significantly compared with the same
period last year.
2. During the reporting period, WFTR, a wholly-owned subsidiary of the company, actively expanded the platform trade business and
achieved good results.


IV. Analysis of non-main business

Applicable □Not applicable

                                                                                                                         Unit: RMB/CNY
                                               Ratio in total
                               Amount                                            Note                        Whether be sustainable (Y/N)
                                                  profit
                                                                                                         Y (The Company’s joint
                                                                                                         ventures RBCD and Zhonglian
                                                                Mainly from the joint ventures
 Investment income         928,792,343.97            67.75%                                              Electronics     have    stable
                                                                RBCD and Zhonglian Electronics
                                                                                                         production and operation both
                                                                                                         on a sustained basis)
                                                                Mainly refers to the changes in the
 Gain/loss of fair
                             -74,432,928.14          -5.43%     fair value of the shares of listed
 value changes
                                                                companies held by the company
                                                                Mainly due to inventory
 Asset impairment          -104,219,783.98           -7.60%
                                                                depreciation loss
 Non-operating
                                  218,285.29          0.02%
 income
 Non-operating
                              2,196,565.87            0.16%
 expense




                                                                                                                                         15
V. Assets and liability
1. Major changes of assets composition
                                                                                                                    Unit: RMB/CNY
                         End of the current period                  End of last year
                                                                                                    Ratio
                                                                                                                 Notes of major changes
                                              Ratio in                              Ratio in     changes(+,-)
                         Amount                                Amount
                                            total assets                          total assets
  Monetary fund       2,357,955,196.57           7.51%      1,896,063,265.69           6.78%           0.73%
  Account                                                                                                        Mainly the increase of
                      4,545,410,759.88          14.47%      2,053,800,293.77           7.34%           7.13%
  receivable                                                                                                     platform trade business
                                                                                                                 Consumption of
  Inventory           2,167,754,348.61           6.90%      3,445,396,375.09           12.32%          -5.42%    inventory and decrease
                                                                                                                 of finished products
  Investment real
                        18,653,199.32            0.06%         19,387,746.56           0.07%           -0.01%
  estate
  Long-term
  equity              5,582,235,398.43          17.78%      5,717,944,788.12           20.44%          -2.66%
  investment
  Fix assets          2,954,329,704.27           9.41%      2,932,210,452.51           10.48%          -1.07%
  Construction in                                                                                                Increase in fixed assets
                       500,684,157.53            1.59%        387,429,933.08           1.39%           0.20%
  progress                                                                                                       investment
  Right-of-use
                        28,757,850.60            0.09%         23,148,405.58           0.08%           0.01%
  assets
                                                                                                                 Increased borrowings
  Short-term
                      4,187,682,800.94          13.34%      1,437,958,206.55           5.14%           8.20%     for platform trade
  loans
                                                                                                                 business
                                                                                                                 Due settlement of
  Contractual
                        93,104,665.28            0.30%        136,427,636.39           0.49%           -0.19%    contract liability
  liability
                                                                                                                 business
  Long-term                                                                                                      Financing structure
                       200,000,000.00            0.64%                                 0.00%           0.64%
  loans                                                                                                          adjustment
                                                                                                                 Lease of new plant and
  Lease liability       21,504,518.33            0.07%         15,795,469.25           0.06%           0.01%
                                                                                                                 equipment

2. Major foreign assets

Applicable □Not applicable
                                                                                                                  Foreign
                                                                                                                                 Whether
                                                                                                         Earn    assets as a
                                                                                                                                 there is a
         Formation     Assets                                            Controls to safeguard the       ings    percentag
Assets                             Location       Operation model                                                               significant
          reasons       size                                                security of assets           statu    e of the
                                                                                                                                  risk of
                                                                                                           s     Company’
                                                                                                                               impairment
                                                                                                                  s assets
                                                 The wholly-
                                                                     The Company will pay full
                                                 owned subsidiary
                                                                     attention to the changes in
         Enterprise                              of the Company,
IRD                                                                  industry and market, strengthen
         combined     RMB                        development,
Fuel                                                                 the corporate governance,
         under the    500.119     Denmark        production and                                          N/A         2.64%     N
Cells                                                                personnel management,
         different    million                    sales of the
A/S                                                                  financial management, auditing
         control                                 component
                                                                     supervision and performance
                                                 products of fuel
                                                                     assessment
                                                 cell
                                                 The wholly-         The Company will pay full
                                                 owned subsidiary    attention to the changes in
         Enterprise
                                                 of the Company,     industry and market, strengthen
         combined     RMB13
Borit                                            production and      the corporate governance,
         under the    2.6833      Belgium                                                                N/A         0.70%     N
NV                                               sales of the        personnel management,
         different    million
                                                 component           financial management, auditing
         control
                                                 products of fuel    supervision and performance
                                                 cell                assessment


                                                                                                                                   16
        3. Assets and liability measured by fair value
        Applicable □Not applicable

                                                                                                                                     Unit: RMB/CNY
                                                                           Deva
                                                               Accum
                                                                            luati                       Amo
                                                                ulative
                                                                           on of                         unt
                                             Changes of fair   change
                                                                            with      Amount of           of
                           Amount at the          value        s of fair                                          Other changes         Amount at
       Items                                                               draw     purchase in the      sale
                          beginning period   gains/losses in     value                                                (+,-)             period-end
                                                                             ing        period          in the
                                               this period     reckone
                                                                           in the                       perio
                                                                d into
                                                                           perio                          d
                                                                equity
                                                                              d
Financial assets
1.Trading
financial
asset(excluding           7,692,496,307.12   -74,432,928.14                         4,467,213,265.48             -6,519,715,515.15   5,565,561,129.31
derivative
financial assets)
2.Other equity
instrument                 285,048,000.00                                            392,742,690.00                          0.00      677,790,690.00
investment
3. Account
receivable                 713,017,014.50                                                                          162,560,570.30      875,577,584.80
financing
4. Forex contracts           74,734,940.30                                           212,552,603.87               -265,068,221.00       22,219,323.17
Subtotal of
                          8,765,296,261.92   -74,432,928.14                         5,072,508,559.35             -6,622,223,165.85   7,141,148,727.28
financial assets
Above total               8,765,296,261.92   -74,432,928.14                         5,072,508,559.35             -6,622,223,165.85   7,141,148,727.28
Financial
                                      0.00                                                                                                       0.00
liabilities
        Other changes refers tot he redemption at maturity

        Whether there have major changes on measurement attributes for main assets of the Company in report period or not
        □Yes No


        4. The assets rights restricted till end of the period
                                                                                                                           Unit: RMB/CNY
                                   Book value at
                   Item                                                                 Restriction reason
                                    period-end
         Monetary fund              41,882,720.34    Cash deposit paid for bank acceptance

         Monetary fund                 188,440.00    Cash deposit for Mastercard

         Monetary fund                4,185,316.40   Court freeze

         Note receivable           335,966,479.97    Notes pledge for bank acceptance
         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 (Hereinafter referred to as Shenzhen
                                                     Intermediate People's Court), the property with the value of 217 million Yuan under the
         Trading financial
                                   188,795,623.32    name of the Company and other seven respondents and the third party Shenzhen Hejun
         asset
                                                     Chuangye Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) was frozen. As
                                                     of the end of the reporting period, 4.71 million shares of Miracle Automation and
                                                     11,739,102 shares of SNAT held by the Company were frozen.
         Total                     713,197,199.63                                               --

                                                                                                                                         17
         VI. Investment analysis

         1. Overall situation
         □ApplicableNot applicable


         2. The major equity investment obtained in the reporting period
         □ApplicableNot applicable


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


         4. Financial assets investment

         (1) Securities investment
         Applicable □Not applicable

                                                                                                                               Unit: RMB/CNY
                                                                          Cum
                                                                                              C
                                      Acc                                 ulati
         C                                                                                   urr
               Shor                   ount                                  ve
Vari    od                                                                                   en
                  t                    ing   Book value                    fair                                                      Acc
ety      e                                                   Current                          t    Profit and loss                           Capit
               form       Initial     mea      at the                     valu    Current                                            ount
of       of                                                gain/loss of                      sal       in the        Book value at            al
                 of     investment    sure   beginning                       e    purchase                                            ing
secu     se                                                 fair value                       es      Reporting        period-end             Sour
               secu        cost       men      of the                     chan     amount                                            subj
ritie   cu                                                   changes                          a        Period                                 ce
                ritie                   t      period                      ges                                                        ect
s       riti                                                                                 m
                  s                   mod                                   in
         es                                                                                  ou
                                        el                                equi
                                                                                             nt
                                                                            ty
 Do
mest                                  Mea
                                                                                                                                     Trad
  ic                                  sure
        60                                                           -                                                                ing
 and            SN      199,208,000   d by   153,643,30                                                        -     112,472,616.0           Own
        08                                                41,170,692.0                                                               fina
forei           AT              .00   fair         8.00                                            41,170,692.00                 0           funds
        41                                                           0                                                               ncial
  gn                                  valu
                                                                                                                                     asset
stoc                                    e
  ks
 Do
mest                                  Mea
               Mira                                                                                                                  Trad
  ic                                  sure
        00      cle                                                  -                                                                ing
 and                    69,331,500.   d by   113,793,60                                                        -                             Own
        20     Aut                                        26,658,600.0                                               87,135,000.00   fina
forei                           00    fair         0.00                                            26,658,600.00                             funds
        09     oma                                                   0                                                               ncial
  gn                                  valu
               tion                                                                                                                  asset
stoc                                    e
  ks
 Do
mest                                  Mea
               Guo                                                                                                                   Trad
  ic                                  sure
        60     lian                                                                                                                   ing
 and                    12,000,000.   d by   208,795,17                                                              198,981,411.0           Own
        14     Secu                                       -9,813,767.00                            -9,813,767.00                     fina
forei                           00    fair         8.00                                                                          0           funds
        56     ritie                                                                                                                 ncial
  gn                                  valu
                 s                                                                                                                   asset
stoc                                    e
  ks
 Do
mest                                  Mea
               Lifa                                                                                                                  Trad
  ic                                  sure
        60      n                                                                                                                     ing
 and                                  d by                                                                                                   Own
        17     Tech       62,845.00           77,802.11       -8,044.16                                 -8,044.16        69,757.95   fina
forei                                 fair                                                                                                   funds
        77     nolo                                                                                                                  ncial
  gn                                  valu
                gy                                                                                                                   asset
stoc                                    e
  ks
                                                                                                                                     18
 Do
mest                                      Mea
                                                                                                                                                Trad
  ic                                      sure
         00      ST                                                                                                                              ing
 and                                      d by                                           613,265.4                                                           Own
         09     Zoty      613,265.48                               -72,776.52                                   -72,776.52        540,488.96    fina
forei                                     fair                                                   8                                                           funds
         80       e                                                                                                                             ncial
  gn                                      valu
                                                                                                                                                asset
stoc                                        e
  ks
                                                                           -
                         281,215,610              476,309,88                             613,265.4    0.                -      399,199,273,9
        Total                              --                   77,723,879.6      0.00                                                            --          --
                                 .48                    8.11                                     8    00    77,723,879.68                  1
                                                                           8
Disclosure date of securities investment          2012-03-24
approval of the Board                             2013-06-04
Disclosure date of securities investment
approval of General Meeting(if
applicable)

Note: 1) SNAT is formerly known as SDEC, which has a name changed during the reporting period;
        2) ST Zotye is resulted by the transfer of receivables to shares from WFLD.


         (2) Derivative investment
         □ApplicableNot applicable
         There are no derivative investment during the reporting period.


         5. Application of raised proceeds
         □ApplicableNot applicable
         There are no application of raised proceeds during the reporting period.

         VII. Sales of major assets and equity

         1.Sales of major assets
         □ApplicableNot applicable
         No major assets were sold during the reporting period.


         2. Sales of major equity
         □ApplicableNot applicable
         No major equity were sold during the reporting period.


         VIII. Analysis of the main equity participation and controlling subsidiary
         Applicable □Not applicable
         Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company

                                                                                                                                    Unit: RMB/CNY
         Compa
                               Main
           ny          Type                 Register capital    Total assets         Net assets      Operation income   Operation profit        Net profit
                              business
          name
                              Exhaust
                              gas
                   Subsidi
         WFLD                 treatment    502,596,300.00      6,271,286,452.43   2,420,109,469.19   3,287,233,284.58    148,289,843.47      138,297,551.67
                     ary
                              system
                              products
                              Fuel
                   Subsidi
         WFJN                 injection    346,286,825.80      1,472,348,435.92   1,102,536,370.45     447,804,363.41        72,979,744.63     65,145,897.60
                     ary
                              system

                                                                                                                                                 19
                     products

          Equity
                     Fuel
          particip
                     injection   USD                                                                                                1,687,151,931.0
RBCD      ation                                      17,986,727,113.38   8,589,683,121.91   8,322,989,203.32    1,900,166,894.31
                     system      382,500,000.00                                                                                                   1
          enterpr
                     products
          ise
          Equity
Zhongl
          particip   Gasoline
  ian
          ation      system      600,620,000.00       7,732,113,510.27   6,755,050,308.74       9,460,906.82      843,080,505.79    841,207,709.66
Electro
          enterpr    products
 nics
          ise
Subsidiary obtained and disposed in the Period
Applicable □Not applicable
                                 Mode of acquisition and disposal
           Name                                                                   Impact on overall operation and business performance
                                   during the reporting period
                                                                         The enterprise mainly engaged in the R&D, production and sale of the
Wuxi Weifu Qinglong                                                      core component products related with hydrogen fuel cell. Establishment
                                 Investment set-up
Power Technology Co., Ltd.                                               of the subsidiary had no major impact on the overall operation and
                                                                         business performance of the Company during the reporting period.

Explanation on holding equity participation enterprise
Affected by the macroeconomic and downward of the auto industry, the operation income and net profit from WFLD, WFJN, RBCD
and Zhonglian Electronics have a y-o-y decline in various degrees.


IX. The structured subject controlled by the Company

□ApplicableNot applicable


X. Risks and countermeasures

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

                                                                                                                                        20
measures and product price adjustments to reduce the impact of raw material price fluctuations on performance.
4. Risks associated with financial instruments
The company's main financial instruments include monetary funds, structured deposits, receivables, equity instrument investments,
wealth management products, loans, payable, etc. In the operation process, the risksrelated to financial instruments faced by the
company mainly include credit risk, market risk and liquidity risk.
Countermeasures: confirm and analyze the various risks faced by the Company, establish an appropriate risk tolerance bottom line
and carry out risk management, and timely monitor various risks to ensure that the risks are controlled within a limited range and the
negative impact of the risks on the company’s operating performance is reduced to the minimum level to maximize the interests of
shareholders and other investors.




                                                                                                                                    21
                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                                 Section IV. Corporate Governance

I. AGM and extraordinary general meeting

1. AGM held in the period

                                    Participation ratio
     Meeting             Type                             Holding date     Disclosure date                  Resolutions
                                      for investors
Annual General                                                                                Notice No.: 2022-036 released on
                         AGM                   40.82%     2022-05-18         2022-05-19
Meeting of 2021                                                                               Juchao Website (www.cninfo.com.cn)


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

□ApplicableNot applicable


II. Changes of directors, supervisors and senior executives

□ApplicableNot applicable
There were no changes in the directors, supervisors and senior executives during the reporting period, found more in the Annual
Report 2021.


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

□ApplicableNot applicable

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


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

Applicable □Not applicable


1. Stock incentive

On October 12, 2020, the Company held the 17th session of the 9thBoard of Directors to deliberated and approved
relevant proposal as the "Restricted Stock Incentive Plan 2020 (Draft)".
On November 3, 2020, the Company held the second extraordinary shareholders’ general meeting of 2020 to
deliberated and approved relevant proposals as the "Restricted Stock Incentive Plan 2020 (Draft) and its summary",
"Proposal on Assessment Management Measures for Restricted Stock Incentive Plan Implementation" and
"Proposal to Request the Shareholders’ General Meeting to Authorized BOD to Fully Handle Matters Regarding
Stock Incentive"
On November 12, 2020, the Company held the 21st session of 9th BOD, as authorized by the second extraordinary
shareholders’ general meeting of 2020, deliberated and approved the "Proposal on Adjusting the List of Incentive
Objects of the Restricted Stock Incentive Plan and the Number of Rights Granted" and the "Proposal on the First

                                                                 22
                                                               无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


Grant of Restricted Stocks to Incentive Objects of the 2020 Restricted Stock Incentive Plan". The BOD considers
that conditions for the initial grant of 2020 restricted stock incentive plan have been met, and November 12, 2020
is determine as the initial grant date, 19,540,000 restricted shares are granted to 601 incentive recipients at a grant
price of 15.48 yuan/Share.
The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Company
dated December 8, 2020.
On October 22, 2021, the Company held the 5th session of 10th BOD to deliberated and approved relevant proposals
as Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back and
Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020, and decided to buy-
back and cancel 291,000 restricted shares held by 11 incentive recipients that had been granted but not yet unlocked.
As of December 20, 2021, cancellation of the above mentioned buy-back shares are completed at the Shenzhen
Branch of CSDC. After cancellation, number of the incentive recipients for the first grant of 2020 restricted stock
incentive plan was adjusted from 601 to 590, restricted stock of 19,249,000 shares are being held in total.


2. Implementation of employee stock ownership plan

□ApplicableNot applicable


3. Other employee incentives

□ApplicableNot applicable




                                                          23
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                    Section V. Environmental and Social Responsibility

  I. Important environmental issues

  The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
  Yes □No
                                           Nu
                Main                                                               Pollutant
                                           mb     Distributi                                                                             Exce
             pollutants                                                            emission
Company/                    Emission        er      on of         Emission                                           Total emission      ssive
                and                                                                standards     Total emissions
Subsidiary                   mode           of    emission      concentration                                          approved          emis
              featured                                                            implemente
                                           outf    outlets                                                                               sion
             pollutant                                                                 d
                                           alls
                                                               COD 75mg/l,
                                                               ammonia
                                                               nitrogen
                                                               15.5mg/l, total
             Chemical
                                                               phosphorus
             oxygen       Discharged
                                                               0.1mg/l, total     Wastewater     COD 7.34 tons,
             demand(C     to the                                                                                    COD 78 tons,
                                                               nitrogen16.6mg/    quality        ammonia
             OD),         municipal                                                                                 ammonia nitrogen
                                                               l, petroleum       standards      nitrogen 1.52
             ammonia      sewage pipe                                                                               7.8 tons, total
                                                  WFMS’s      0.8mg/l            for            tons, total
             nitrogen,    network after                                                                             phosphorus 0.52
                                           1      sewage       COD 75mg/l,        discharge to   phosphorus 0.01                         N/A
             total        treatment by                                                                              tons, total
                                                  outlets      ammonia            municipal      tons, total
             nitrogen,    sewage                                                                                    nitrogen10.4 tons,
                                                               nitrogen           sewers         nitrogen1.62
             total        treatment                                                                                 petroleum 1.95
                                                               15.5mg/l, total    (GB/T3196      tons, petroleum
             nitrogen     station of the                                                                            tons,
                                                               phosphorus         2-2015)        0.08 tons
             and          Company
                                                               0.1mg/l, total
             petroleum
                                                               nitrogen
                                                               16.6mg/l,
                                                               petroleum
                                                               0.8mg/l
                                                                                                 COD
                          Discharged                           COD 150mg/l,
                                                                                  Wastewater     1.201tons,         COD ≤8.924tons,
                          to the                               ammonia
             COD ,                                                                quality        ammonia            ammonia nitrogen
                          municipal                            nitrogen
             ammonia                                                              standards      nitrogen           ≤0.682tons, total
                          sewage pipe                          32.2mg/l, total
             nitrogen ,                           WFAC’s                         for            0.258tons, total   nitrogen≤1.017ton
                          network after                        nitrogen 40.2m
WFHT         petroleum                     1      sewage                          discharge to   nitrogen 0.322     s, total             N/A
                          treatment by                         g/l , total
             , total                              outlets                         municipal      tons, total        phosphorus
                          sewage                               phosphorus
             nitrogen,                                                            sewers         phosphorus         ≤0.094tons,
                          treatment                            3.41mg/l,
             petroleum                                                            (GB/T3196      0.027 tons,        petroleum ≤0.410
                          station of the                       petroleum
                                                                                  2-2015)        petroleum          tons
                          Company                              1.84mg/l
                                                                                                 0.015tons,
                                                   5 in
                                                  machine
                          Organized               workshop                        Integrated
                          emission of             s, 10 in                        Emission
                          waste gas               heat                            Standard of
             NMTHC        after HCY-       19     treatment    1.5mg/l            Air            1.16 tons          2.523 tons           N/A
                          W + active              workshop                        pollutants
                          carbon                  s and 4 in                      (GB16297-
                          adsorption              assembly                        1996)
                                                  workshop
                                                  s

                          Organized                                               Integrated
                          emission of                                             Emission
                          waste gas                                               Standard of
                                                  4 in 101
             NMTHC        after HCY-       4                   1.94mg/l           Air            0.27864 tons       1.152 tons           N/A
                                                  workshop
                          W + active                                              pollutants
                          carbon                                                  (GB16297-
                          adsorption                                              1996)


                                                                  24
                                                                  无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                     Organized                                              Emission
                     emission of             1 in heat                      Standards
                     ammonia                 treatment    Ammonia 0.7       for Odor       Ammonia           Ammonia
       Ammonia                        1                                                                                          N/A
                     after spray             workshop     mg/l              Pollutants     0.0117 tons       0.071tons
                     tower                   s                              (GB14554-
                     adsorption                                             93)
                                                                            Integrated
                     Organized                                              Emission
                                             2 in heat
                     emission of                                            Standard of
       Particulate                           treatment
                     particulates     2                   2mg/m3            Air            0.0027 tons       0.048 tons          N/A
       s                                     workshop
                     after fabric                                           pollutants
                                             s
                     filter                                                 (GB16297-
                                                                            1996)
       Hazardous
       wasters as
       waste oil,
       waste
       emulsion,
       cleaning
       fluid,        Entrusted
       grinding      with the         Not
       wheel ash,    legally          app    Not                            Not
                                                          Not applicable                   436.539 tons      946.2 tons          N/A
       sewage        qualified        lica   applicable                     applicable
       pre-          units for        ble
       treatment     disposal
       sludge,
       oil-
       containing
       cartridge,
       and the
       rest
                                                                                           COD
                     Discharged                           COD 41mg/L,
       COD,                                                                 Wastewater     1.7737tons,       COD 35.018
                     to the                               suspensions
       ammonia                                                              quality        suspensions       tons, suspensions
                     municipal                            11mg/L,
       nitrogen ,                                                           standards      0.4759 tons,      26.263 tons,
                     sewage pipe                          ammonia
       total                                                                for            ammonia           ammonia nitrogen
                     network after           Sewage       nitrogen
WFCA   phosphoru                      1                                     discharge to   nitrogen 0.0121   2.626 tons, total   N/A
                     treatment by            outlets      0.28mg/L, total
       s , total                                                            municipal      tons, total       phosphorus 0.438
                     sewage                               phosphorus
       nitrogen,                                                            sewers         phosphorus        tons, total
                     treatment                            0.055mg/L,
       suspension                                                           (GB/T3196      0.0024 tons,      nitrogen3.502
                     station of the                       total nitrogen
       s                                                                    2-2015)        total nitrogen    tons
                     Company                              5.01mg/L
                                                                                           0.2167 tons
                     Discharged
                                                                            Wastewater
                     to the
                                                                            quality
                     municipal
                                                                            standards
                     sewage pipe                          COD 100mg/L,
       COD ,                                                                for            COD 5 tons,
                     network after           Sewage       ammonia
       ammonia                        1                                     discharge to   ammonia           Not applicable      N/A
                     treatment by            outlets      nitrogen
       nitrogen                                                             municipal      nitrogen 1 tons
                     sewage                               20mg/L
                                                                            sewers
                     treatment
                                                                            (GB/T3196
                     station of the
                                                                            2-2015)
                     Company
       Hazardous
       wasters as
WFJN
       waste oil,
       oily
       sludge,       Entrusted
       grinding      with the         Not
       wheel ash,    legally          app    Not                            Not
                                                          Not applicable                   145.71 tons       Not applicable      N/A
       empty         qualified        lica   applicable                     applicable
       barrels,      units for        ble
       activated     disposal
       carbon,
       filter, and
       the rest




                                                             25
                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


Construction and operation of pollution prevention facilities

(i) Improve environmental protection system and enhance environmental protection management
Each company has set up a special environmental protection department to carry out the company's environmental protection work,
hired professional environmental protection management personnel, established an environmental protection management system and
related systems, carried out environmental protection management knowledge training, arranged special personnel to operate and
maintain environmental protection treatment facilities, and continuously improved the company's environmental protection
management performance.
(ii) Comply with environmental laws, regulations and rules
Each company strictly abides by the Environmental Protection Law of the People's Republic of China, the Water Pollution Prevention
and Control Law of the People's Republic of China, the Air Pollution Prevention and Control Law of the People's Republic of China,
the Law on the Prevention and Control of Environmental Pollution by Solid Wastes of the People's Republic of China, and the
Environmental Noise Pollution Prevention and Control Law of the People's Republic of China and other laws and regulations, at the
same time, the company has formulated a series of internal rules and regulations, such as Environmental Protection Management
System, Wastewater Discharge Management Measures, Exhaust Emissions Management Measures, Solid Wastes Management
Measures, Environmental Noise Management Measures and Contingency Plan for Environmental Emergencies, and earnestly fulfills
the responsibilities of protecting the environment.
(iii) Strengthen the management of pollutant emissions
1.Carry out environmental monitoring and strengthen pollution discharge monitoring
Each company has installed online monitoring equipment for major pollutants and completed networking in accordance with the
requirements of the environmental protection department to realize real-time monitoring of the concentration of major pollutants, at
the same time, entrusted a qualified environmental testing unit to carry out regular environmental monitoring on the discharge of waste
water, waste gas and environmental noise, so as to further grasp the comprehensive discharge of pollutants.
Environmental monitoring to further grasp the overall discharge of pollutants.
2. Implement manufacturing process upgrades to reduce pollution, reduce consumption and increase efficiency
The company uses low-volatile VOC raw and auxiliary materials process substitution to reduce pollutant emissions at the source;
increases investment in reuse equipment such as reclaimed water reuse, and reduces pollutant emissions at the end.
3.Improve the operation and maintenance level of environmental protection facilities to ensure that pollutants are discharged up to
standard.
The company continues to increase investment in environmental protection, continuously upgrades and transforms waste water, waste
gas and other environmental protection treatment facilities; formulates and revises operational documents such as environmental
protection management operation instructions, further standardizes the management of environmental protection facilities, carries out
daily spot inspections, workshop inspections, and random checks to supervise and guarantee the effective operation of the treatment
facilities so as to ensure that all kinds of pollutants are discharged up to the standard.

Environmental impact assessment of construction projects and other administrative licenses for environmental protection
All companies strictly abide by the Environmental Impact Assessment Law of the People's Republic of China, Regulations Concerning
the Environmental Protection Management and other laws and regulations at all stages of project construction and operation to ensure
that the environmental protection facilities of the construction project and the main body of the project are designed, constructed and
put into production at the same time. During the reporting period, all construction projects were approved by the competent
environmental protection department. During the reporting period, all projects passed the environmental protection acceptance
inspection by the competent environmental protection department before they were put into production.

Contingency plan for environmental emergencies
Each company prepares or revises the Contingency Plan for Environmental Emergencies in a timely manner in accordance with the
relevant requirements of the contingency plans for environmental emergencies of enterprises and institutions, and files them with the


                                                                     26
                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


local environmental protection authority. Each company prepares an annual emergency plan drill plan and organizes drills on a regular
basis to ensure effective control of emergencies and reduce harm to the environment.

Environmental self-monitoring program
Each company regularly entrusts third-party monitoring agencies to carry out environmental monitoring of pollutants such as waste
gas, waste water and noise as required, so as to keep abreast of pollutant emissions in a timely manner.

Administrative penalties for environmental issues during the reporting period

No

Other environmental information that should be disclosed
Regularly carry out internal and external audits of the environmental management system, and continuously improve the environmental
management level through self-examination and external supervision to ensure the company's legal and compliant pollution discharge
and the effective operation of the environmental management system.

Measures taken to reduce carbon emissions during the reporting period and their effects
Applicable □Not applicable
As an important part of the company’s core value, saving resources and reducing consumption, on the one hand, are conducive to the
improvement of enterprise efficiency, and at the same time, are also conducive to the improvement of resource utilization rate of the
whole society. Therefore, the company continuously improves resource utilization rate through technological innovation, vigorously
promotes energy conservation and emission reduction, and strives to achieve green production.
The company’s existing main business is based on the energy saving and emission reduction of automobiles. At present, the company’s
main products have all met the requirements of national emission regulations, and we are actively stocking products that meet more
stringent emission regulations. In recent years, the company has accelerated the layout and development of new energy businesses such
as green hydrogen energy and intelligent electric power, which helps achieve the goals of peak carbon dioxide emissions and carbon
neutrality.

Other environmental related information

Nil


II. Social responsibility

During the reporting period, the company organized employees a donation of 75,000 yuan to the Red Cross Society of Wuxi. The
company has been awarded the honorary unit of Wuxi "Red Cross Donating-raising Work Organization Award" for many consecutive
years. In March of this year, the company's labor union and all female employees joined hands with Wuxi Special Education School
to carry out a book donation activity, caring for the vulnerable groups around them with practical actions, and conveying care and best
wishes to the children at the special school. A total of 1,611 books were donated this time, including classics, children's books, science
stories, etc. Since this year, the company has provided real assistance through various channels such as Wuxi Federation of Trade
Unions, Red Cross Society, "Weifu Group Public Welfare Mutual Aid Fund" and other channels, helping employees solve problems,
such as disease, education and difficulties, totally assisted 77 employees, with 328,600 yuan in total. The employees of the company
also joined the "Wuxi Happy Volunteers" to go to the nursing homes in Wuxi to offer love and warmth to the elderly.
The company actively built the trade union work brand of "Wei Gongyi  Fu Xiangzhu" of "red leadership enjoys high prestige",
actively undertook social responsibility, strengthened the concept of social responsibility, gathered the strength of employees, worked
hard, overcame difficulties together, and established a good corporate image so as to contribute to promoting the sustainable
development of the enterprise and boosting the high-quality economic development of the company.




                                                                   27
                                                                       无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                                      Section VI. Important Matters

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

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


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

□ApplicableNot applicable
No non-operational fund occupation from controlling shareholders and its related party in period.


III. External guarantee out of the regulations

□ApplicableNot applicable
No external guarantee out of the regulations occurred in the period.


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

Whether the financial report of semi-annual report has been audited

□Yes No

The semi-annual report of the Company is unaudited.


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

□ApplicableNot applicable


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

□ApplicableNot applicable


VII. Bankruptcy reorganization

□ApplicableNot applicable

No bankruptcy reorganization occurred during the reporting period.


VIII. Litigation

Major litigation and arbitration
□ApplicableNot applicable
No major litigation and arbitration occurred in the Period.

                                                                  28
                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


Other litigation
Applicable □Not applicable
                     Amount      Whether
                                                                          Trial Results      Judgment
Basic Situation of Related to    Formed           Progress of
                                                                         and Effects of    Implementation   Disclosure    Disclosure
   Litigation        the Case    Accrued          Litigation
                                                                           Litigation       of Litigation      Date         Index
  (Arbitration)     (10’000Yu   Liabiliti       (Arbitration)
                                                                          (Arbitration)     (Arbitration)
                        an)         es


 On March 6,
 2017, the
 company
 received the civil
 ruling
 No.(2016)Y03M                               By the company’s
 C2490 and                                   application for
 No.(2016)                                   reconsideration,
 Y03MC2492                                   Shenzhen
 from Shenzhen                               Intermediate
 Intermediate                                People's Court
 People's Court                              deemed the total
 about the dispute                           assets that Cinda
 case that the                               Company applied
 plaintiff applicant                         for preservation to
 China Cinda                                 be RMB
 Asset                                       217,027,697.23.
 Management Co.,                             The total value of
 Ltd. Shenzhen                               15.3 million shares
 Branch                                      of SNAT Stock and
 (hereinafter                                4.71 million shares
 referred to as                              of Miracle
 “Cinda                                     Automation held by
 Company”)                                  the company has                                                             (Announceme
 appealed the                                exceeded the total          This litigation                                 nt No.: 2017-
 respondent Weifu                            assets that Cinda           will not affect                                 002, 2017-
 High Technology                             Company applied             the company’s                                  023)
                                                                                           Not yet
 and other seven       21,703       N        for preservation,           daily                              2017-03-08   published on
                                                                                           implemented
 respondents and                             therefore, 3,560,898        operating                                       Juchao
 the shareholders                            shares of SNAT              activities for                                  Website
 of the third party                          Stock held by the           the time being                                  (www.cninfo.
 Hejun Company                               company was                                                                 com.cn)
 damaged the                                 unfrozen. Up to the
 interests of                                end of the reporting
 corporate                                   period, the
 creditors, which                            company’s frozen
 adopted the                                 assets were as
 mandatory                                   follows: 4.71
 measures to                                 million shares of
 freeze the assets                           Miracles
 with value of                               Automation held by
 RMB 217 million                             the company and its
 under the name of                           fruits, and
 the Company and                             11,739,102 shares
 other seven                                 of SNAT Stock held
 respondents and                             by the company and
 Hejun Company.                              its fruits. At present,
 Freeze 4.71                                 this litigation is still
 million shares of                           in first instance
 Miracle
 Automation and
 15.3 million
 shares of SNAT
 Stock held by the
 company.




                                                                 29
                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                                               The Company has
                                               applied to Futian
                                               People's Court of
                                               Shenzhen for
                                               compulsory
                                               liquidation with
                                               Hejun Company.
                                               The civil ruling
                                               paper (Yue (0304)
                                               QS [2017] No. 5)
                                               made by Shenzhen
                                               Futian District
                                               People’s Court
                                               ruled that Hejun
                                               Company should be
                                               made compulsory                                                            (Announceme
 The Company has
                                               liquidation.In          There is no      Shenzhen                          nt No.: 2017-
 applied to Futian
                                               process of the case,    impact on        Intermediate                      023)
 People's Court of
                                               the liquidation team    daily            Court declares                    published on
 Shenzhen for        3,300             N                                                                    2017-12-06
                                               found that Hejun        operation        the bankruptcy                    Juchao
 compulsory
                                               Company was             activities of    of Hejun                          Website
 liquidation with
                                               insolvent and turned    the Company      Company                           (www.cninfo.
 Hejun Company
                                               to the Shenzhen                                                            com.cn)
                                               Intermediate Court
                                               to apply for
                                               bankruptcy. The
                                               Company has
                                               received the a Civil
                                               Ruling Letter from
                                               Shenzhen
                                               Intermediate Court.
                                               Hejun Company
                                               declared to
                                               bankruptcy and
                                               terminated the
                                               bankruptcy
                                               proceedings for
                                               Hejun Company.


IX. Penalty and rectification
□ApplicableNot applicable


X. Integrity of the company and its controlling shareholders and actual controllers
□ApplicableNot applicable


XI. Major related party transaction
1. Day-to-day related party transaction
Applicable □Not applicable
                                                                                            Whe
                                                                                             ther
                              Cont                                                                  Clea
                                                                                            over
                     Typ       ent                        Related                                    ring
                                               Relate                  Propor    Trading      the
                     e of       of                          party                                   form
                                      Pricin      d                    tion in     limit    appr            Available               Index
                     relat    relat                      transactio                                   for                Date of
Related   Relation                      g       party                  simila    approve    oved             similar                  of
                       ed       ed                       n amount                                   relat                disclosu
 party     ship                       princi   transa                     r      d (in 10   limit            market                 disclo
                     tran     party                        (in 10                                     ed                    re
                                       ple      ction                  transa    thousan      ed              price                  sure
                     sact     trans                      thousand                                   trans
                                                price                  ctions    d Yuan)       or
                      ion     actio                        Yuan)                                    actio
                                                                                             not
                                n                                                                      n
                                                                                             (Y/
                                                                                              N)


                                                                30
                                                                    无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                      Pro
                      cure   Proc
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          Associat                     the                                                                                 Notice
                      goo      of                                                             ng
            ed                        fair    Marke                                                 Market     2022-       No.:
WFPM                  ds     good                        1,694.79    0.33%      4,000   N      to
          enterpri                   value    t price                                               price      04-19       2022-
                      and    s and                                                            the
             se                         in                                                                                 012
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RBCD                  ds     good                       17,450.80    3.41%     45,000   N      to
             ng                      value    t price                                               price      04-19       2022-
                      and    s and                                                            the
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                      cure   urem      the                                                                                 Notice
            ed                                                                                ng
                      men     ent     fair    Marke                                                 Market     2022-       No.:
WFEC      enterpri                                      24,664.69    4.82%     70,000   N      to
                      t of    of     value    t price                                               price      04-19       2022-
           se of                                                                              the
                      goo    good       in                                                                                 012
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            der of    ds     good                        9,390.61    1.83%     30,000   N      to
Compan                               value    t price                                               price      04-19       2022-
             the      and    s and                                                            the
   y                                    in                                                                                 012
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            ed        men     ent     fair    Marke                                                 Market     2022-       No.:
  un                                                       34.25     0.01%       150    N      to
          enterpri    t of    of     value    t price                                               price      04-19       2022-
Xuyang                                                                                        the
             se       goo    good       in                                                                                 012
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          Associat            s of     the                                                                                 Notice
                      goo                                                                     ng
            ed               good     fair    Marke                                                 Market     2022-       No.:
WFPM                  ds                                   52.27     0.01%      1,000   N      to
          enterpri           s and   value    t price                                               price      04-19       2022-
                      and                                                                     the
             se              servi      in                                                                                 012
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          controlli          good     fair    Marke     163,326.9     22.31                         Market     2022-       No.:
RBCD                  ds                                                      350,000   N      to
             ng              s and   value    t price           3        %                          price      04-19       2022-
                      and                                                                     the
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           Bosch

                                                              31
                                                                    无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                                     Pricin
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          Associat    s of                                                                   ordi
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            ed        goo                                                                     ng
                             good     fair    Marke                                                 Market     2022-       No.:
WFEC      enterpri    ds                                   15.86     0.00%       700    N      to
                             s and   value    t price                                               price      04-19       2022-
           se of      and                                                                     the
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           largest    s of                                                                   ordi
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          sharehol    goo                                                                     ng
 Bosch                       good     fair    Marke                                                 Market     2022-       No.:
            der of    ds                                72,466.82    9.90%    180,000   N      to
Compan                       s and   value    t price                                               price      04-19       2022-
             the      and                                                                     the
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            ed               good     fair    Marke                                                 Market     2022-       No.:
  un                  ds                                   18.15     0.00%       500    N      to
          enterpri           s and   value    t price                                               price      04-19       2022-
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          Affiliate           s of     the                                                                                 Notice
 Hebei                goo                                                                     ng
             d               good     fair    Marke                                                 Market     2022-       No.:
Machine               ds                                 7,760.74    1.06%     20,000   N      to
          compan             s and   value    t price                                               price      04-19       2022-
  ry                  and                                                                     the
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                             servi                                                            ng
          controlli   Oth             fair    Marke                                                 Market     2022-       No.:
RBCD                          ce                                                  50    N      to
             ng       er             value    t price                                               price      04-19       2022-
                              fee                                                             the
          subsidia                      in                                                                                 012
                             paya                                                            cont
            ry of                    marke
                              ble                                                            ract
           Robert                        t
           Bosch
          Associat           Pay
             ed              ment    Pricin
                                                                                             Acc
          enterpri             of     g on
                                                                                             ordi
             se.             tech      the                                                                                 Notice
                                                                                              ng
          controlli   Oth    nical    fair    Marke                                                 Market     2022-       No.:
RBCD                                                       31.20                 150    N      to
             ng       er     com     value    t price                                               price      04-19       2022-
                                                                                              the
          subsidia           miss       in                                                                                 012
                                                                                             cont
            ry of             ion    marke
                                                                                             ract
           Robert             fee        t
           Bosch              etc.
          Associat
             ed                      Pricin
                                                                                             Acc
          enterpri           Purc     g on
                                                                                             ordi
             se.              hasi     the                                                                                 Notice
                                                                                              ng
          controlli   Oth      ng     fair    Marke                                                 Market     2022-       No.:
RBCD                                                      131.49                 250    N      to
             ng       er     fixed   value    t price                                               price      04-19       2022-
                                                                                              the
          subsidia           asset      in                                                                                 012
                                                                                             cont
            ry of               s    marke
                                                                                             ract
           Robert                        t
           Bosch




                                                              32
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                              Pay
                              ment     Pricin
            Second                                                                                      Acc
                                of      g on
            largest                                                                                     ordi
Robert                        tech       the                                                                                              Notice
           sharehol                                                                                      ng
 Bosch                 Oth    nical     fair     Marke                                                          Market        2022-       No.:
             der of                                             13.05                    100     N        to
Compan                 er     com      value     t price                                                        price         04-19       2022-
              the                                                                                        the
   y                          miss        in                                                                                              012
           Compan                                                                                       cont
                               ion     marke
               y                                                                                        ract
                               fee         t
                               etc.
                                       Pricin
            Second                                                                                      Acc
                             Purc       g on
            largest                                                                                     ordi
Robert                        hasi       the                                                                                              Notice
           sharehol                                                                                      ng
 Bosch                 Oth     ng       fair     Marke                                                          Market        2022-       No.:
             der of                                               5.47                 2,800     N        to
Compan                 er    fixed     value     t price                                                        price         04-19       2022-
              the                                                                                        the
   y                         asset        in                                                                                              012
           Compan                                                                                       cont
                                s      marke
               y                                                                                        ract
                                           t
                              Tech     Pricin
                                                                                                        Acc
                              nical     g on
           Associat                                                                                     ordi
                              servi      the                                                                                              Notice
             ed                                                                                          ng
                       Oth      ce      fair     Marke                                                          Market        2022-       No.:
WFEC       enterpri                                                                       50     N        to
                       er       fee    value     t price                                                        price         04-19       2022-
            se of                                                                                        the
                              paya        in                                                                                              012
           WFLD                                                                                         cont
                                ble    marke
                                                                                                        ract
                               etc.        t
                              Prov     Pricin
                                                                                                        Acc
                              ision     g on
           Associat                                                                                     ordi
                                 of      the                                                                                              Notice
             ed                                                                                          ng
                       Oth     tech     fair     Marke                                                          Market        2022-       No.:
WFEC       enterpri                                                                      150     N        to
                       er     nical    value     t price                                                        price         04-19       2022-
            se of                                                                                        the
                              servi       in                                                                                              012
           WFLD                                                                                         cont
                               ces,    marke
                                                                                                        ract
                               etc.        t
                                       Pricin
                                                                                                        Acc
                                        g on
           Associat           Leas                                                                      ordi
                                         the                                                                                              Notice
             ed                 e                                                                        ng
                       Oth              fair     Marke                                                          Market        2022-       No.:
WFEC       enterpri           recei                            119.04                    300     N        to
                       er              value     t price                                                        price         04-19       2022-
            se of             vabl                                                                       the
                                          in                                                                                              012
           WFLD                 e                                                                       cont
                                       marke
                                                                                                        ract
                                           t
                                       Pricin
                                                                                                        Acc
                              Ener      g on
           Associat                                                                                     ordi
                               gy        the                                                                                              Notice
             ed                                                                                          ng
                       Oth    paya      fair     Marke                                                          Market        2022-       No.:
WFEC       enterpri                                             61.45                    200     N        to
                       er     ble-     value     t price                                                        price         04-19       2022-
            se of                                                                                        the
                              utilit      in                                                                                              012
           WFLD                                                                                         cont
                               ies     marke
                                                                                                        ract
                                           t
                                                            297,237.6
               Total                     --        --                       --      705,400      --      --          --           --         --
                                                                    1
Detail of sales return with major
                                       Not applicable
amount involved
                                       Being deliberated and approved by AGM of 2021, total day-to-day related party transaction for year of
                                       2022 predicted as 7,054 million Yuan, actually2972.3761 million Yuan occurred in the Period, the related
Report the actual implementation of
                                       transaction classified according to types are as: 1. it estimated that procurement of goods and labor
the day-to-day related transactions
                                       service from related party in 2022 will up to 1491.5 million Yuan, while 532.3514 million Yuan occurred
which were projected about their
                                       actually in the Period; 2. it estimated that sales of goods and labor service to related party in 2022 will
total amount by types during the
                                       up to 5,522 million Yuan, actually 2436.4077 million Yuan occurred during the reporting period; 3. it
reporting period (if applicable)
                                       estimated that other related transactions with related party for year of 2022 will up to 40.5 million Yuan
                                       while 3.617 million Yuan actually occurred.
Reasons for major differences
between trading price and market       Not applicable
reference price (if applicable)




                                                                   33
                                                                       无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


2. Related party transactions of assets acquisition and sold

□ApplicableNot applicable

No related party transactions of assets acquisition and sold occurred during the reporting period


3. Related party transactions of mutual investment outside

□ApplicableNot applicable

No related party transactions of mutual investment outside occurred during the reporting period.


4. Contact of related party credit and debt

□ApplicableNot applicable

The Company had no contact of related party credit and debt in the reporting period.


5.Transaction with related financial companies
□ApplicableNot applicable

There are no deposits, loans, credits or other financial business occurred between the Company and the related finance companies or
related parties


6.Transaction between the financial companies that controlled by the Company and related parties
□ApplicableNot applicable
There are no deposits, loans, credits or other financial business occurred between the financial companies that controlled by the
Company and related parties


7. Other material related party transactions
Applicable □Not applicable

On January 7, 2022, the Company held the 6 th session of 10th BOD to deliberated and approved the Proposal on Establishment of a
Joint Venture Company for Hydrogen Fuel Cell Parts and Related Transactions. The joint venture completed the industrial &
commercial registration procedures on June 30, 2022, and obtained the Business License issued by Market Supervision Administration
of Wuxi National High-tech Industrial Development Zone (Xinwu District of Wuxi).
On February 7, 2022, the Company held the 7th session of 10th BOD to deliberated and approved the Proposal on Acquisition of Equity
and Related Transactions. At present, the acquisition is progressing in an orderly manner as planned.
On May 5, 2022, the Company held the 10th session of 10th BOD to deliberated and approved the Proposal to Increase Capital in a
Participating Company and Related Transaction. The participating company Xichan Weixin completed the industrial & commercial
registration procedures on June 29, 2022, and obtained the new Business License.

Inquiries of related website with interim report disclosed with material related transaction concerned

                          Announcement                                 Disclosure date                   Website for disclosure
 Notice on Establishment of a Joint Venture Company for
                                                                     2022-01-11            Juchao Website(http://www.cninfo.com.cn)
 Hydrogen Fuel Cell Parts and Related Transactions
 Notice on Acquisition of Equity and Related Transactions            2022-02-09            Juchao Website(http://www.cninfo.com.cn)
 Notice on Increasing Capital in a Participating Company and
                                                                     2022-05-07            Juchao Website(http://www.cninfo.com.cn)
 Related Transaction


                                                                  34
                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ApplicableNot applicable

No trusteeship occurred during the reporting period
(2) Contract
□ApplicableNot applicable

No contract occurred during the reporting period
(3) Leasing
□ApplicableNot applicable

No leasing occurred during the reporting period

2. Material guarantees
□ApplicableNot applicable

No material guarantees occurred during the reporting period

3.Trust financing
Applicable □Not applicable

                                                                                                                        Unit: 10’000 yuan
                                                                                                                       Impairment for the
                                         Capital         Amount            Outstanding         Amount overdue
               Type                                                                                                     overdue financial
                                         sources         occurred           balance             for collection
                                                                                                                          management
Bank Wealth Management                Own funds                82,908             34,681                         0                        0
Brokerage financial products          Own funds               101,612             64,500                         0                       0
Trust financial products              Own funds               349,329            229,250                         0                       0
Other types                           Own funds               163,796            139,570                         0                       0
Total                                                         697,645            468,001
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
Applicable □Not applicable

                                                                                                                        Unit: 10’000 yuan
                                                                                                                       Am
                                                                                                                                W
                                                                                                                       ount
                                                                                                                               het
                                                                                                                         of
                                                                                                                                he
                                                                                                                       rese
                                                                                                                                 r
                                                                                                                        rve           Whe
                                                                                                                                ap            Summ
                                                                                                               Actu     for            ther
                                                                                                                                pr             ary of
                                                                                                                 al    dev             has
                                                               Capi      Crit                                                  ov                the
                                      So                                                   Antici              colle   alua            entr
Truste                                                          tal      eria   Refere               Actual                     ed             items
                                      urc                                                   pated              cted    tion             ust
    e                                                          inve      for      nce                gains/l                   by               and
          Truste           Amoun       e     Start    End                                  incom               gain      of            fina
institu            Type                                        stme     fixin   annual                osses                    leg            related
          e type             t         of    date     date                                   e (if             s/los   with            nce
 tion r                                                          nt       g     rate of                in                       al             query
                                      fun                                                  applic               ses     dra           plan
 name                                                          purp     rewa    return               period                     pr             index
                                       ds                                                   able)                in    win               in
                                                                ose       rd                                                    oc                (if
                                                                                                               peri    g in             the
                                                                                                                                ed            applic
                                                                                                                od      the           futur
                                                                                                                                ur             able)
                                                                                                                       Yea                e
                                                                                                                                 e
                                                                                                                       r (if
                                                                                                                               (Y
                                                                                                                       appl
                                                                                                                               /N
                                                                                                                       icab
                                                                                                                                 )
                                                                                                                        le)


                                                                  35
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


                                                                         Refe
                                                                         renc
                                                                                                             Coll
                                                                         e
                     Non-                                      Ban                                           ecte
                                                                         annu
                     guara                                     k                                             d
                                        O                                al
                     nteed                    2022    2022     fina                                          acco
                              370,06   wn                                rate    2.50%-             672.1
Bank       Bank      floati                   -01-    -09-     ncia                        95.99             rdin   Y     Y
                                   0   fun                               of       3.05%                 5
                     ng                       05      30       l                                             g to
                                        ds                               retur
                     inco                                      prod                                          the
                                                                         n by
                     me                                        ucts                                          cont
                                                                         the
                                                                                                             ract
                                                                         cont
                                                                         ract
                                                                         Refe
                                                               Coll      renc
                                                                                                             Coll
                                                               ecti      e
                     Non-                                                                                    ecte
                                                               ve        annu
                     guara                                                                                   d
                                        O                      asse      al
                     nteed                    2022    2024                       4.70%-                      acco
Broke      Securi                      wn                      t         rate              5,971.   2,273.
                     floati   46,000          -01-    -04-                         15.73                     rdin   Y     Y
rage       ties                        fun                     man       of                    22       81
                     ng                       07      25                              %                      g to
                                        ds                     age       retur
                     inco                                                                                    the                April
                                                               men       n by
                     me                                                                                      cont               19,
                                                               t         the
                                                                                                             ract               2022
                                                               plan      cont
                                                                                                                                (Anno
                                                                         ract
                                                                                                                                uncem
                                                                         Refe
                                                                                                                                ent
                                                                         renc
                                                                                                             Coll               No.
                                                                         e
                     Non-                                                                                    ecte               2022-
                                                                         annu
                     guara                                     Coll                                          d                  013)
                                        O                                al
                     nteed                    2022    2024     ecti                                          acco
                                       wn                                rate    6.30%-    3,127.   7,172.
Trust      Trust     floati   23,000          -01-    -03-     on                                            rdin   Y     Y
                                       fun                               of        7.1%        55       48
                     ng                       27      18       trust                                         g to
                                        ds                               retur
                     inco                                      plan                                          the
                                                                         n by
                     me                                                                                      cont
                                                                         the
                                                                                                             ract
                                                                         cont
                                                                         ract
                                                                         Refe
                                                                         renc
                                                                                                             Coll
                                                                         e
           Other     Non-                                      Priv                                          ecte
                                                                         annu
           profes    guara                                     ate                                           d
                                        O                                al
Other      sional    nteed                    2022    2022     Equi                                          acco
                                       wn                                rate    2.00%-    247.9    341.4
(Fund      financ    floati    5,100          -02-    -08-     ty                                            rdin   Y     Y
                                       fun                               of         10%        9        7
s, etc.)   ial       ng                       24      24       Prod                                          g to
                                        ds                               retur
           institu   inco                                      ucts,                                         the
                                                                         n by
           tions     me                                        etc.                                          cont
                                                                         the
                                                                                                             ract
                                                                         cont
                                                                         ract
                              444,16                                                     9,442.   10,45
Total                                    --     --       --       --      --      --                          --    --    --     --
                                    0                                                        75    9.91
 Entrust financial expected to be unable to recover the principal or impairment might be occurred

 □ApplicableNot applicable

 4. Other significant contract
 □ApplicableNot applicable

 The company had no other significant contract in the reporting period.

 XIII. Explanation on other material matters
 □ApplicableNot applicable

 There are no explanation on other material matters in the period




                                                                    36
                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


XIV. Material matters of subsidiary of the Company

□ApplicableNot applicable




                                           37
                                                                       无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




    Section VII. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

                                                                                                                            Unit: Share
                                        Before the Change            Increase/Decrease in the Change (+, -)            After the Change
                                                                                       Public
                                                                   New                 reserve    Ot
                                                                            Bonus                        Subt
                                      Amount        Proportion    shares              transfer    he                 Amount         Proportion
                                                                            shares                       otal
                                                                  issued             into share    rs
                                                                                       capital
I. Restricted shares                   19,289,336        1.91%                                                       19,289,336           1.91%
1. State-owned shares
2. State-owned legal person’s
shares
3. Other domestic shares               19,289,336        1.91%                                                       19,289,336           1.91%
Including: Domestic legal
person’s shares
Domestic natural person’s
                                       19,289,336        1.91%                                                       19,289,336           1.91%
shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s shares
II. Unrestricted shares               989,370,234      98.09%                                                       989,370,234           98.09%
1. RMB ordinary shares                816,990,234      81.00%                                                       816,990,234           81.00%
2. Domestically listed foreign
                                      172,380,000      17.09%                                                       172,380,000           17.09%
shares
3. Overseas listed foreign shares
4. Others
III. Total shares                   1,008,659,570     100.00%                                                     1,008,659,570      100.00%
Reasons for share changed
□ApplicableNot applicable
Approval of share changed
□ApplicableNot applicable
Ownership transfer of share changed
□ApplicableNot applicable
Implementation progress of shares repurchase
Applicable □Not applicable
On April 15, 2022, the Company held 8th session of 10th BOD to deliberated and approved the Proposal on Repurchase Plan of Some
A-Share of the Company.
On May 10, 2022, the Company implemented the share repurchase (A-Share) initially by means of centralized competitive trading. As
of June 30, 2022, total of 4,982,800 shares (A-Share) were repurchased by means of centralized competitive bidding trading through
a special securities account for repurchase, representing 0.49% of the current total share capital, of which, the highest trading price
was 20.85 yuan/Share while the lowest trading price was 19.30 yuan/Share, total amount paid in aggregated as 100,001,057.07 yuan
(transaction fees included).




                                                                  38
                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


Implementation progress of reducing holdings of shares buy-back by centralized bidding

□ApplicableNot applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period

□ApplicableNot applicable

Other information necessary to disclose or need to disclosed under requirement from security regulators

□ApplicableNot applicable


2. Changes of lock-up stocks

□ApplicableNot applicable


II. Securities issuance and listing

□ApplicableNot applicable


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

                                                                                                                         Unit: share
Total common stock shareholders at end of                       Total preference shareholders with voting rights
                                                        68,720                                                                         0
the reporting period                                            recovered at end of reporting period (if applicable)
                    Particulars about common shares held above 5% by shareholders or top ten common shareholders
                                                                                                                         Information of
                                                             Amount of                       Amount                           shares
                                                                                                          Amount of
                                                Proporti      common                            of                           pledged,
                                                                            Changes in                      common
                                  Nature of       on of      shares held                    restricted                      tagged or
 Full name of Shareholders                                                   reporting                    shares held
                                 shareholder     shares     at the end of                   common                            frozen
                                                                            period (+,-)                    without
                                                  held        reporting                       shares                      State
                                                                                                           restriction              Am
                                                                period                         held                        of
                                                                                                                                    ount
                                                                                                                          share
Wuxi Industry Development        State-owned
                                                 20.23%     204,059,398                0             0    204,059,398
Group Co., Ltd.                  corporate
                                 Foreign
Robert Bosch Co., Ltd                            14.16%     142,841,400                0             0    142,841,400
                                 corporate
Hong Kong Securities             Foreign
                                                    2.20%    22,213,969      -2,495,452              0     22,213,969
Clearing Company                 corporate
BBH BOS S/A FIDELITY             Foreign
                                                    1.40%    14,122,915      -1,321,800              0     14,122,915
FD - CHINA FOCUS FD              corporate
NSSF - 413                       Other              0.72%      7,230,000      1,890,000              0      7,230,000
FIDELITY INVMT TRT
                                 Foreign
FIDELITY INTL SMALL                                 0.70%      7,043,386               0             0      7,043,386
                                 corporate
CAP FUND
Shanghai Chongyang
Strategic Investment Co., Ltd.
                                 Other              0.55%      5,500,106      5,500,106              0      5,500,106
- Chongyang Strategy YZ
Funds
Industrial and Commercial
Bank of China Limited -
                                 Other              0.39%      3,943,482        236,900              0      3,943,482
Fullgoal CSI Bonus Enhanced
Securities Investment Fund
                                 Domestic
Xie Zuogang                      nature             0.38%      3,812,086               0             0      3,812,086
                                 person
Basic Pension Insurance
                                 Other              0.34%      3,422,856     -4,292,800              0      3,422,856
Fund- 1003


                                                                 39
                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


Strategy investor or general legal person becoming
the top 10 common shareholders by placing new           N/A
shares (if applicable)
                                                        Among the aforesaid shareholders, there has no associated relationship between
                                                        Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first
Explanation on associated relationship among the
                                                        largest shareholder of the Company; and they do not belong to the persons acting
aforesaid shareholders
                                                        in concert regulated by the Management Measure of Information Disclosure on
                                                        Change of Shareholding for Listed Company.
Description of the above shareholders in relation to
delegate/entrusted voting rights and abstention from    N/A
voting rights.
                                                        As of June 30, 2022, the repurchase special securities account of Weifu High-
                                                        Technology Group Co., Ltd has 5,039,077 shares of ordinary A-Share,
Special note on the repurchase account among the top
                                                        representing 0.50% of the shareholding, hereby stated that in according withe
10 shareholders (if applicable) (refer to Note 11)
                                                        relevant requirement, they do not included in the top 10 shareholders of the
                                                        Company.
                               Particular about top ten shareholders with un-lock up common stocks held
                                                         Amount of common shares                          Type of shares
                 Shareholders’ name                     held without restriction at
                                                                Period-end                        Type                     Amount
Wuxi Industry Development Group Co., Ltd.                                 204,059,398    RMB common shares                  204,059,398

                                                                                         RMB common shares                  115,260,600
Robert Bosch Co., Ltd                                                     142,841,400
                                                                                         Domestically listed
                                                                                                                             27,580,800
                                                                                         foreign shares
Hong Kong Securities Clearing Company                                      22,213,969    RMB common shares                   22,213,969
                                                                                         Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                   14,122,915                                        14,122,915
                                                                                         foreign shares
NSSF - 413                                                                  7,230,000    RMB common shares                    7,230,000
FIDELITY INVMT TRT FIDELITY INTL SMALL                                                   Domestically listed
                                                                            7,043,386                                         7,043,386
CAP FUND                                                                                 foreign shares
Shanghai Chongyang Strategic Investment Co., Ltd. -
                                                                            5,500,106    RMB common shares                    5,500,106
Chongyang Strategy YZ Funds
Industrial and Commercial Bank of China Limited -
Fullgoal CSI Bonus Enhanced Securities Investment                           3,943,482    RMB common shares                    3,943,482
Fund
                                                                                         Domestically listed
Xie Zuogang                                                                 3,812,086                                         3,812,086
                                                                                         foreign shares
Basic Pension Insurance Fund- 1003                                          3,422,856    RMB common shares                    3,422,856
                                                      Among the aforesaid shareholders, there has no associated relationship between
Expiation on associated relationship or consistent
                                                      Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first
actors within the top 10 un-lock up common
                                                      largest shareholder of the Company; and they do not belong to the persons acting
shareholders and between top 10 un-lock up common
                                                      in concert regulated by the Management Measure of Information Disclosure on
shareholders and top 10 common shareholders
                                                      Change of Shareholding for Listed Company.
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-back
agreement dealing in reporting period

□Yes No

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


IV. Changes in shareholdings of directors, supervisors and senior executives

□ApplicableNot applicable
There were no changes in shareholdings of the directors, supervisors and senior executive during the reporting period , found more in
Annual Report 2021



                                                                 40
                                                                     无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period
□ApplicableNot applicable
The Company had no change of controlling shareholder during the reporting period



Change of actual controller during the reporting period
□ApplicableNot applicable
The Company had no change of actual controller during the reporting period




                                                                41
                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                                     Section VIII. Preferred Stock

□ApplicableNot applicable
The Company had no preferred stock in the Period.




                                                    42
                                              无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                             Section IX. Corporate Bonds

□ApplicableNot applicable




                                         43
                                                                       无锡威孚高科技集团股份有限公司 2022 年半年度报告全文




                                           Section X. Financial Report

I. Audit report

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


II. Financial Statement

Statement in Financial Notes are carried in RMB/CNY


1. Consolidated Balance Sheet


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


                                                         June 30, 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

                                                                  44
                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


     Other debt investment
     Long-term account receivable
     Long-term equity investment                                    5,582,235,398.43         5,717,944,788.12
     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


                                                   45
                                                              无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


         Including: Preferred stock
                     Perpetual capital securities
       Lease liability                                                       21,504,518.33            15,795,469.25
      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



                                                         46
                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


     Contractual assets
     Assets held for sale
     Non-current assets maturing within one year
     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


                                                   47
                                                               无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


      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
      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


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                                                                           无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


     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
joint venture
               The termination of income recognition for financial
                                                                                            -680,357.44             -609,970.51
assets measured by amortized cost(Loss is listed with “-”)
          Exchange income (Loss is listed with “-”)
           Net exposure hedging income (Loss is listed with “-”)
           Income from change of fair value (Loss is listed with “-”)                  -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
                                                                                         -12,679,652.16           -18,712,800.55
of parent company
     (I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
              1.Changes of the defined benefit plans that re-measured
              2.Other comprehensive income under equity method that
cannot be transfer to gain/loss
              3.Change of fair value of investment in other equity
instrument
              4.Fair value change of enterprise's credit risk
              5. Other
      (ii) Other comprehensive income items which will be reclassified
                                                                                         -12,679,652.16           -18,712,800.55
subsequently to profit or loss
              1.Other comprehensive income under equity method that
can transfer to gain/loss
              2.Change of fair value of other debt investment
              3.Amount of financial assets re-classify to other
comprehensive income
              4.Credit impairment provision for other debt investment
             5.Cash flow hedging reserve
             6.Translation differences arising on translation of foreign
                                                                                         -12,679,652.16           -18,712,800.55
currency financial statements
             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
                                                                                       1,220,083,058.79         1,626,676,686.77
Company
     Total comprehensive income attributable to minority shareholders                     37,662,091.00           43,653,697.80



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                                                                            无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


 VIII. Earnings per share:
       (i) Basic earnings per share                                                                    1.25                      1.66
      (ii) Diluted earnings per share                                                                  1.25                      1.66

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
                                                                                          734,429,287.99           831,855,487.43
 joint venture
                The termination of income recognition for financial
 assets measured by amortized cost (Loss is listed with “-”)
           Net exposure hedging income (Loss is listed with “-”)
            Changing income of fair value (Loss is listed with “-”)                     -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


                                                                       50
                                                                       无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


              1.Other comprehensive income under equity method that
 can transfer to gain/loss
              2.Change of fair value of other debt investment
              3.Amount of financial assets re-classify to other
 comprehensive income
              4.Credit impairment provision for other debt investment
             5.Cash flow hedging reserve
             6.Translation differences arising on translation of foreign
 currency financial statements
             7.Other
 VI. Total comprehensive income                                                      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
                                                                                   8,608,596,903.67         7,104,973,474.71
 services
      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


                                                                  51
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


      Net cash received from disposal of fixed, intangible and other
                                                                                          7,007,242.74            7,301,988.55
 long-term assets
      Net cash received from disposal of subsidiaries and other units
      Other cash received concerning investing activities                                                         1,108,314.69
 Subtotal of cash inflow from investing activities                                    7,300,739,628.87       10,159,511,605.36
      Cash paid for purchasing fixed, intangible and other long-term
                                                                                       622,264,336.12          312,048,305.49
 assets
      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
                                                                                         25,671,100.00          13,970,282.31
 subsidiaries
      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
                                                                                         -4,522,251.76           -3,408,171.79
 exchange rate
 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
                                                                                      2,206,683,069.38        3,242,751,680.23
 services
      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
                                                                                      1,469,241,728.46        1,994,221,184.67
 service
      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


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                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文


     Cash received from investment income                                             515,008,090.22          467,905,359.02
     Net cash received from disposal of fixed, intangible and other
                                                                                        2,092,031.77            4,642,596.78
long-term assets
     Net cash received from disposal of subsidiaries and other units
     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
                                                                                      427,352,475.87          168,425,236.10
assets
     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
                                                                                       -3,140,478.44            -1,128,178.25
exchange rate
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




                                                                   53
                                                                                                                                              无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
     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




                                                                                                      54
                                                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

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,
                                                      -36,746,344.60
beginning of      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
                                                                                                                          -34,469,516.06                 33,383,376.
decreased                       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.
                                                                                                                           34,733,141.01
equity with                     41.01                                                                                                                2           93
share-based
payment


                                                                                                                                                                   -
                                        69,202,657.
4. Other                                                                                                                  -69,202,657.07                 69,202,657.
                                                07
                                                                                                                                                                 07



                                                                              55
                            无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

                                  -                       -                        -
(III) Profit
                    1,609,059,668.8         1,609,059,668.8              1,609,059,6
distribution
                                  0                       0                    68.80

1.
Withdrawal
of surplus
reserves

2.
Withdrawal
of general
risk
provisions
3.
Distribution                      -                       -                        -
for owners
                    1,609,059,668.8         1,609,059,668.8              1,609,059,6
(or
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
               56
                            无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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


                       57
                                                                                                                                                 无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
(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,
                                                                             -49,425,996.76
the report      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




                                                                                                         58
                                                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文



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.
                                                      18,712,800.                               134,284,380.68         153,116,773.47                 184,017,754.68
year                            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
                                                      18,712,800.
nsive                                                                                                         2                     7           80                  7
income                                                        55

 (ii)
Owners’
devoted                    37,351,06                                                                                                    1,174,655.4
                                                                                                                        37,351,066.35                  38,525,721.77
and                             6.35                                                                                                              2
decreased
capital

                                                                                 59
                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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




                           60
                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

3.
Distributi                      -                     -             -                 -
on for
                  1,513,341,439.5       1,513,341,439.5   13,970,282.   1,527,311,721.8
owners (or
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



             61
                                                                                                     无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

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
                                                                                                 2,236,332.86           2,236,332.86                   2,236,332.86
s

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




                                                                                62
                                                                                                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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
                                                             35,819,280.96      69,202,657.07                                                -699,881,040.34                  -733,264,416.45
 year (Decrease is
 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
                                                                                                63
                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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
                                                                                     -1,609,059,668.80               -1,609,059,668.80
distribution
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
                                                           3,366,170.40                                                   3,366,170.40
the report period

                                                      64
                                                                                                                                   无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
 2. Usage in the
                                                                                                             3,366,170.40                                                               3,366,170.40
 report period
 (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

                                                                                               65
                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
 (ii) Owners’
devoted and
                   38,525,721.77                                                       38,525,721.77
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity      38,525,721.77                                                       38,525,721.77
with share-
based payment

4. Other

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

                                   66
                                                                                                   无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

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




                                                                    67
                                                               无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
I I I . Basic information of the Company

1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu High-
Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company
of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for Industry &
Commerce in October 1992. The original share capital of the Company totaled 115.4355 million yuan, including
state-owned share capital amounting to 92.4355 million yuan, public corporate share capital amounting to 8 million
yuan and inner employee share capital amounting to 15 million yuan.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of 1.00 yuan for each, and the total value of those
shares amounted to 68 million yuan. After the issuance, the Company’s total share capital increased to 183.4355
million yuan.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to 303.4355 million yuan.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the Company
amounted to 394.46615 million yuan, of which state-owned shares amounted to 120.16615 million yuan, public
corporate shares 10.4 million yuan, foreign-funded shares (B-share) 88.40 million yuan, RMB ordinary shares (A-
share) 156 million yuan and inner employee shares 19.5 million yuan.
In the year 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.


                                                          68
                                                            无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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 )
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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 INTERNATIONAL 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 TURBOCHARGING
                                                       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.

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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

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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
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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"
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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;
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(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.
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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 liabilities
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.
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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
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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
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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
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     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
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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
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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

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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

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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
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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
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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,
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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
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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
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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

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(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

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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-

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“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.
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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
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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
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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,

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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
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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
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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


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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.
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                                                                 无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

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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
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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

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                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

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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


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(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

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                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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
                        84,547,706.49       1,028,126.00       3,168,519.71          935,642.25           -6,365.83       81,465,304.70
  provision
  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


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(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 receivables
financing.

6. Account paid in advance
(1) Account age of account paid in advance
                                                                                                                      Unit: RMB/CNY


                                                                  107
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                                                 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

                                                                  108
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 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
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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


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                 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
                      84,791,307.00           53,801,807.54      -152,390.70        21,737,180.93                       116,703,542.91
 stock
 Goods in
                      18,593,866.28            9,140,454.44                         11,610,480.04                        16,123,840.68
 process
 Cash on
                     129,714,961.12           41,277,522.00       -89,942.73        58,250,037.15                       112,652,503.24
 hand
 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




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                                                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
 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


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 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
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 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
                                   3,968,861.62    138,648,414.76        1,775,227.26     77,172,856.93          221,565,360.57
 progress transfer-in
       (3) increased by
 combination
 (4) Financial lease
                                                        64,699.85                                                     64,699.85
 transfer in
    3.Current decreased              488,813.38     55,801,683.90         541,608.87      25,693,634.93           82,525,741.08
       (1) disposal or
                                     488,813.38     55,801,683.90         541,608.87      25,693,634.93           82,525,741.08
 scrapping
 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
                                                        64,699.85                                                     64,699.85
 transfer in
      3.Current decreased            108,540.49     44,673,027.09         440,849.62      12,955,989.77           58,178,406.97
       (1) disposal or
                                     108,540.49     44,673,027.09         440,849.62      12,955,989.77           58,178,406.97
 scrapping
       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

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      (1) accrual
    3.Current decreased                              15,865,748.28                                   239,774.56          16,105,522.84
      (1) disposal or
                                                     15,865,748.28                                   239,774.56          16,105,522.84
 scrapping
     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
                               1,130,413,255.15   1,503,663,994.93        12,295,002.38        285,838,200.05          2,932,210,452.51
 value


(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
                                122,449,644.48               122,449,644.48          88,688,772.85                  88,688,772.85
 parent company
 Lot 103 phase V of the
                                112,555,657.23               112,555,657.23          89,599,174.42                  89,599,174.42
 parent company
 WFMS rebuilding of the
                                  18,686,136.06                  18,686,136.06       12,185,858.74                  12,185,858.74
 parent company
 Technical transformation of
                                102,610,702.98               102,610,702.98          72,318,870.79                  72,318,870.79
 WFAM
 Technical transformation of
                                  10,851,400.11                  10,851,400.11       13,368,288.81                  13,368,288.81
 WFLD
 Technical transformation of
                                  28,868,788.17                  28,868,788.17       23,293,601.39                  23,293,601.39
 Denmark RID
 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


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    (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 Sourceoffunds
                    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
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        (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
4. 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

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 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
                           1,784,086.79                                                                                    1,784,086.79
 WFTT
 Merged with
                         229,470,928.96                           -6,829,069.97                                          222,641,858.99
 Borit
 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
                                       42,228,033.40                6,334,205.01                 65,251,129.55            10,531,677.19
 insider transactions
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 Bad debt provision                   84,662,196.11             13,027,934.23                  87,681,266.17                  13,383,420.21
 Inventory     depreciation
                                     237,577,309.80             37,278,710.01                 224,955,223.94                  37,688,819.01
 reserve
 Depreciation reserves of
                                      48,551,677.36               7,319,013.57                 57,218,038.14                    8,677,481.50
 fixed assets
 Depreciation reserves of
                                      16,646,900.00               2,497,035.00                 16,646,900.00                    2,497,035.00
 intangible assets
 Deferred income                     279,305,258.43             42,180,462.93                 295,502,674.12                  44,620,545.44
 Payable salary, accrued
                                   1,184,211,558.45            180,370,131.32               1,236,037,621.62                 188,472,847.67
 expenses etc.
 Depreciation         assets,
                                      46,993,667.62               7,648,746.44                 54,047,597.49                    8,868,412.34
 amortization difference
 Deductible      loss     of
                                      79,414,078.52             17,898,035.16                  53,658,338.05                  11,465,129.69
 subsidiary
 Equity incentive                    115,567,627.28             17,856,586.29                  80,742,533.73                  12,498,678.30
 Fiscal and tax differences
                                         378,997.84                     72,554.36                   378,997.84                     72,554.36
 for leasing business
 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
                                                 243,001,104.43            36,494,552.16            318,337,329.74            47,794,985.96
 financial asset
 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
                                     -85,235,107.64             20,805,712.81                 -96,528,406.14                  23,097,535.20
 liabilities

(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

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 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.
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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

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 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
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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


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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:

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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



                                                                   125
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
  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

                                                                  126
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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 Jiangsu
  Province, and 4,789,997.04 Yuan with income related was reckoned into current operation revenue directly; the 7,210,002.96 Yuan
  with assets related was amortized during the predicted service period of the assets, and 721,000.26 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 yuan
                                                              127
                                                                     无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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 intelligent
manufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the depreciation
progress of the assets. Amortization for the 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
                                                                  128
                                                                               无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
                                                                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

                                                                         129
                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
 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 regulations
and the parts enjoy by shareholders of the Company in safety production costs accrual by subsidiary in line with regulations.

42. Surplus reserve
                                                                                                                        Unit: 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
                                                                   130
                                                                           无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
 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
                                                                    131
                                                  无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
                     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




                                            132
                                                                      无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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




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                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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


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                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

 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
                                                                135
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 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

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(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


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        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.

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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
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(5) Notes relating to the purchase date or the end of the period in which the merger consideration or the fair
value of the purchasee’s identifiable assets and liabilities cannot be reasonable determined

Nil

(6) Other explanation


Nil


2. Enterprise 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




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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




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(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


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 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
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                                                                    无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

                                                              144
                                                                 无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
--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

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                                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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
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                                                                   无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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
       ②Foreign 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
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                                                                     无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

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                                                                  无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

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Explanation on parent company of the enterprise
Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own assets, house leasing services, self-operating and acting
as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are
restricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibited items). (Projects
that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).
Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of Jiangsu
Province.

Other explanation
Nil


2. Subsidiary of the enterprise

Found more in Note IX. 1.” Equity in subsidiary”

3. Joint venture and associated enterprise
Found more in Note IX.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: Nil

4. Other Related party

                    Other Related party                                            Relationship with the Enterprise
 Robert Bosch Company                                       Second largest shareholder of the Company
 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
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 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

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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



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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:




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                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
                                                                                                                     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

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                                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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

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                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
      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                                                                                                 Total
                               System products   system products       business       investment or      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

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                                                                                   无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
Total                                                                                                                                      1,370,978,589.1
                  285,746,385.70        64,188,537.72         5,203,744.82     161,466,407.39       854,359,415.83            -14,097.70
Profit                                                                                                                                                   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
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                                                                        无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
    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


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                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
                                                                  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




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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

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                                                                          无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
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



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                                                                                无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
  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

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                                                                             无锡威孚高科技集团股份有限公司 2022 年半年度报告全文
                                                   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
                                                                                                                      593,396.00
    depreciation test
    Other non-operating income and expenditure except for the aforementioned items                                    197,098.29

    Less: Impact on income tax                                                                                     -6,602,079.68

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                                                                         无锡威孚高科技集团股份有限公司 2022 年半年度报告全文

      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




                                                               BOD of WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.



                                                                                     Chairman:

                                                                                                       Wang Xiaodong

                                                                                                       August 23, 2022




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