Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Weifu High-Technology Group Co., Ltd.
The First Quarterly Report 2011
(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd.
(hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby
confirm that there are no any fictitious statements, misleading statements, or important omissions
carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
1.2 The First Quarterly Financial Report of 2011 has not been audited by CPAs.
1.3 Wang Weiliang, Principal of the Company; Sun Qingxian, Person in Charge of Accounting
Works; Sun Qingxian, Person in Charge of Accounting Organ(Accounting Supervisor) hereby
confirm that the Financial Report of the First Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
Changes of
At the end of the At the period-end
increase/decrease
report period of the last year
(%)
Total assets (RMB) 7,340,213,490.31 6,761,622,809.90 8.56%
Owners’ equity attributable to
shareholders of the listed company 4,396,937,862.89 4,106,208,383.62 7.08%
(RMB)
Share capital (Share) 567,275,995.00 567,275,995.00 0.00%
Net asset per share attributable to
shareholders of listed company 7.75 7.24 7.04%
(RMB/Share)
Changes of
The same period
In the report period increase/decrease
of last year
(%)
Total operating income (RMB) 1,617,839,294.12 1,188,216,542.85 36.16%
Net profit attributable to shareholders of
290,729,479.27 114,030,846.25 154.96%
the listed company (RMB)
Net cash flow arising from operating
-107,850,912.52 -88,249,244.11
activities (RMB)
Net cash flow arising from operating
-0.19 -0.16
activities per share (RMB/Share)
Basic earnings per share (RMB/Share) 0.51 0.20 155.00%
Diluted earnings per share
0.51 0.20 155.00%
(RMB/Share)
Weighted average return on equity (%) 6.84% 3.91% 2.93%
Weighted average return on equity after
deducting non-recurring gains and 6.84% 3.97% 2.87%
losses (%)
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Items of non-recurring gains and losses
√ Applicable □ Inapplicable
Unit: RMB
Remarks
Items of non-recurring gains and losses Amount
(If applicable)
Gains and losses from the disposal of non-current asset -218,377.94
Other non-operating income and expenditure except for the
53,278.07
aforementioned items
Impact on income tax 17,797.54
Influenced amount of minority shareholders’ equity 1,723.43
Total -145,578.90 -
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders with unrestricted conditions
Unit: Share
Total number of shareholders at the end of report period 42,816
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Amount of tradable
shares with
unrestricted
Full Name of shareholder Type of shares
conditions held at
the end of report
period
Domestically listed
ROBERT BOSCH GMBH 18,387,200
foreign share
China Construction Bank- Fullgoal Tianbo Innovation
18,300,000 RMB common share
Theme Stock Fund,
GUOTAI JUNAN SECURITIES(HONGKONG) Domestically listed
12,333,700
LIMITED foreign share
China Construction Bank- Huashang Shengshi Growth
11,097,272 RMB common share
Stock Fund
Domestically listed
DRAGON BILLION CHINA MASTER FUND 11,066,646
foreign share
China Construction Bank- China AMC Advantage Growth
10,379,508 RMB common share
Stock Fund
China Minsheng Banking Corp., Ltd. – Huashang Strategy
8,971,691 RMB common share
Selected Flexible Allocation Mix Stock Fund
Agriculture Bank of China – Changsheng Tongde Theme
8,500,504 RMB common share
Growth Stock Fund
Domestically listed
GAOLING FUND,L.P. 8,202,516
foreign share
Bank of Communications – Hua An Innovation Stock Fund 8,180,000 RMB common share
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
1. Construction in process growth 65.56 percent over year-begin, mainly due to the increase of
investment in technology reform.
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
2. Short-term loans growth 67.59 percent over year-begin, mainly because the rapidly development in
business which caused the increase of bank short-tem loans.
3. Operating income increased 36.16 percent over same period of last year, mainly due to the rapidly
development in business of the Company.
4. Sales expense decreased 43.88 percent over same period of last year, mainly because the strength on
sales management, lower the procedures which down the expenses.
5. Investment income increased 112.63 percent over same period of last year, mainly because the profit
contributed from the stock-joint company – Boshi Auto Diesel System Co., Ltd. was dramatically
growth.
6. Operating profit increased 152.88 percent over same period of last year, mainly because the growth
of main business and rapidly increase of investment income.
7. Net profit attributable to owners’ of parent company increased 154.96 percent over same period of
last year, mainly because the business profit gains a rapidly growth.
8. Income tax expenses increased 325.38 percent over same period of last year, mainly because the
dramatically growth in profit and the income tax correspondingly soaring in the report period.
9. Net cash flow arising from financing activities decreased 34.31 percent over same period of last year,
mainly because the Company adopts the concentrated capital management that reduced the bank loans.
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
3.2.3 Particular about the significant contract of routine operation signed and implemented
□Applicable √Inapplicable
3.2.4 Other
√Applicable □Inapplicable
Proposal of shares private offering was deliberated and passed by the Second Extraordinary
Shareholders’ General Meeting of 2010.
The plan of share privately offering of the Company requires approval from relevant governments of
Ministry of Commerce, and should put into practice after approval from CSRC, and will exercise on
the plan approved by CSRC. (Found more details on Notice of Resolution of the 2nd Extraordinary
Shareholders’ General Meeting of 2010 published on Securities Times, China Securities Journal,
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) dated 25 December 2010).
The Plan has submitted to Ministry of Commerce for approval.
3.3 Implementations of commitments by the Company, shareholders and actual controller
Commitments make within the report period or persisted to the period by listed company and its
director, supervisor and senior executives, shareholder with over 5 percent shares held and its actual
controller
√Applicable □Inapplicable
Item of Commitments Promisee Content of commitments Implementation
The total realized net profit of the
Company from 2006 to 2008 was
Wuxi RMB 0.85 billion, and that in
Industry 2008 was RMB 0.34 billion.
Commitments for Share Implementation
Development Based on circulating A shares
Merger Reform has accomplished
Group Co., before the share reform, arranging
Ltd. additionally delivering 0.5 shares
per 10 shares, the proportion of
cash dividend from 2006 to 2008
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
was not lower than 50 percent of
profit available for distribution of
investors realized by the Company
in those years.
Commitments made in
Acquisition Report or Reports Inapplicable Inapplicable Inapplicable
on Change in Interests
Commitments made in Material
Inapplicable Inapplicable Inapplicable
Assets Reorganization
Commitments made in issuing Inapplicable Inapplicable Inapplicable
In order to promote the listed
company’s steady and healthy
development, fully mobilize senior
executives so as to ensure to
combine the interests of the
The said
governance and shareholders of
commitment is
Wuxi the Company, Weifu Industry
being
Industry Group committed: after Weifu
Other commitments (including implemented, and
Development High-tech finishing Share Merger
additional commitments) would be
Group Co., Reform, under related regulations
performed since
Ltd. of the state and Wuxi government
related policy is
in terms of governance
perfected.
encouragement system of listed
company, the Group would the
stock incentive plan for
management level of Weifu
High-tech.
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next
report period to be loss probably or the warning of its material change compared with the
corresponding period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report
period
Contents discussed and
Date Place Method Investor
materials supplied
Bank of
Conference room Operation status and future
2011-01-06 Spot research Communications
of the Company development of the Company
Schroders
Conference room Operation status and future
2011-01-07 Spot research China life, Franklin
of the Company development of the Company
Conference room China Merchants Operation status and future
2011-02-16 Spot research
of the Company Securities development of the Company
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
§4. Appendix
4.1 Balance sheet
Prepared by Weifu High-Technology Group Co., Ltd. March 31, 2011 Unit: RMB
Balance at period-end Balance at year-begin
Items Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 440,153,613.59 113,844,527.83 596,958,764.21 149,943,763.55
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 928,172,190.22 334,796,016.10 835,266,266.32 291,611,147.00
Accounts receivable 1,273,126,939.90 662,696,163.98 999,798,439.30 567,607,398.18
Accounts paid in advance 161,242,930.98 49,143,543.26 105,176,780.11 42,468,803.76
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable 348,145,326.00 356,642,016.22 8,496,690.22
Other receivables 6,260,157.64 209,714,516.96 6,892,216.92 137,067,355.21
Purchase restituted finance
asset
Inventories 1,015,286,595.84 327,185,568.10 917,694,296.54 277,723,002.78
Non-current asset due within
one year
Other current assets 9,460,705.44 9,210,782.24
Total current assets 4,181,848,459.61 2,054,022,352.45 3,470,997,545.64 1,474,918,160.70
Non-current assets:
Granted loans and advances
Finance asset available for
sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 1,677,404,531.34 2,330,524,423.27 1,892,112,152.46 2,558,225,582.62
Investment property 4,831,654.06 4,965,879.52
Fixed assets 1,100,426,560.71 534,913,750.15 1,110,068,115.28 538,628,218.28
Construction in progress 235,522,152.48 190,034,500.42 142,256,732.63 125,932,175.31
Engineering material
Disposal of fixed asset
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Productive biological asset
Oil and gas asset
Intangible assets 84,844,330.34 26,566,210.95 85,655,823.12 26,733,764.37
Expense on Research and
Development
Goodwill 1,784,086.79 1,784,086.79
Long-term expenses to be
apportioned 6,972,940.63 7,473,629.75
Deferred income tax asset 46,578,774.35 16,195,351.53 46,308,844.71 16,198,870.70
Other non-current asset
Total non-current asset 3,158,365,030.70 3,098,234,236.32 3,290,625,264.26 3,265,718,611.28
Total assets 7,340,213,490.31 5,152,256,588.77 6,761,622,809.90 4,740,636,771.98
Current liabilities:
Short-term loans 452,487,493.42 422,487,493.42 270,000,000.00 240,000,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 333,322,030.70 149,908,487.00 389,985,533.69 200,278,487.00
Accounts payable 1,346,990,282.72 886,028,388.30 1,195,053,077.84 766,617,178.72
Accounts received in advance 49,301,783.80 19,714,919.93 42,271,899.15 20,438,892.15
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 279,885,181.17 184,145,069.43 269,751,945.96 168,133,427.32
Taxes payable 80,627,688.79 19,772,775.50 107,903,963.31 28,582,184.41
Interest payable 490,000.00 320,000.00 490,000.00 320,000.00
Dividend payable 3,464,336.15 18,696,539.18
Other accounts payable 71,286,963.19 55,039,782.89 62,501,613.74 56,125,853.06
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year
Other current liabilities 34,484,063.05 818,616.49 24,330,259.35
Total current liabilities 2,652,339,822.99 1,738,235,532.96 2,380,984,832.22 1,480,496,022.66
Non-current liabilities:
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Long-term loans 3,000,000.00 3,000,000.00
Bonds payable
Long-term account payable 15,670,000.00 15,670,000.00
Special accounts payable
Projected liabilities 1,481,745.84 1,481,745.84
Deferred income tax liabilities 2,801,008.40 2,801,008.40
Other non-current liabilities 14,593,000.00 13,350,000.00
Total non-current liabilities 36,064,008.40 1,481,745.84 34,821,008.40 1,481,745.84
Total liabilities 2,688,403,831.39 1,739,717,278.80 2,415,805,840.62 1,481,977,768.50
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
capital) 567,275,995.00 567,275,995.00 567,275,995.00 567,275,995.00
Capital public reserve 895,918,416.59 923,981,806.57 895,918,416.59 923,981,806.57
Less: Inventory shares
Reasonable reserve
Surplus public reserve 283,637,997.50 283,637,997.50 283,637,997.50 283,637,997.50
Provision of general risk
Retained profit 2,650,105,453.80 1,637,643,510.90 2,359,375,974.53 1,483,763,204.41
Balance difference of foreign
currency translation
Total owner’s equity
attributable to parent company 4,396,937,862.89 3,412,539,309.97 4,106,208,383.62 3,258,659,003.48
Minority interests 254,871,796.03 239,608,585.66
Total owner’s equity 4,651,809,658.92 3,412,539,309.97 4,345,816,969.28 3,258,659,003.48
Total liabilities and owner’s
equity 7,340,213,490.31 5,152,256,588.77 6,761,622,809.90 4,740,636,771.98
4.2 Profit statement
Prepared by Weifu High-Technology Group Co., Ltd. Jan.-Mar. 2011 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Total operating income 1,617,839,294.12 833,816,030.01 1,188,216,542.85 620,875,087.08
Including: Operating income 1,617,839,294.12 833,816,030.01 1,188,216,542.85 620,875,087.08
Interest income
Insurance gained
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Commission charge and
commission income
II. Total operating cost 1,386,509,213.86 765,447,648.44 1,104,946,771.10 598,485,518.44
Including: Operating cost 1,184,963,972.83 686,865,102.01 912,432,310.56 543,290,152.03
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
Operating tax and extras 9,261,487.17 2,765,743.21 7,273,043.66 2,886,121.77
Sales expenses 32,177,349.01 15,345,785.51 57,338,278.79 18,051,258.95
Administration expenses 151,019,027.30 55,378,432.40 121,954,130.96 31,498,573.74
Financial expenses 9,744,277.83 5,015,193.28 10,783,524.08 7,035,121.44
Losses of devaluation of asset -656,900.28 77,392.03 -4,834,516.95 -4,275,709.49
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”) 109,618,904.88 96,625,366.65 51,554,055.40 40,645,604.74
Including: Investment income
on affiliated company and joint
venture 109,618,904.88 96,625,366.65 51,554,055.40 40,645,604.74
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is
listed with “-”) 340,948,985.14 164,993,748.22 134,823,827.15 63,035,173.38
Add: Non-operating income 210,625.24 39,500.48 332,671.41 213,053.41
Less: Non-operating expense 2,096,976.41 1,044,989.10 4,419,244.04 3,467,563.52
Including: Disposal loss of
non-current asset 344,580.11 190,448.07 3,005,127.90 2,780,963.25
IV. Total Profit (Loss is listed
with “-”) 339,062,633.97 163,988,259.60 130,737,254.52 59,780,663.27
Less: Income tax 33,879,944.33 10,107,953.11 7,964,652.51 634,192.51
V. Net profit (Net loss is listed
with “-”) 305,182,689.64 153,880,306.49 122,772,602.01 59,146,470.76
Net profit attributable to
owner’s equity of parent
company 290,729,479.27 153,880,306.49 114,030,846.25 59,146,470.76
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Minority shareholders’ gains
and losses 14,453,210.37 8,741,755.76
VI. Earnings per share
i. Basic earnings per share 0.51 0.27 0.2 0.1
ii. Diluted earnings per share 0.51 0.27 0.2 0.1
VII. Other consolidated income 0 0
VIII. Total consolidated income 305,182,689.64 153,880,306.49 122,772,602.01 59,146,470.76
Total consolidated income
attributable to owners of parent
company 290,729,479.27 153,880,306.49 114,030,846.25 59,146,470.76
Total consolidated income
attributable to minority
shareholders 14,453,210.37 8,741,755.76
Concerning the enterprise consolidation under common control occurred in the period; the mergered
party realized net profit before consolidation amounting to RMB00.00.
4.3 Cash flow statement
Prepared by Weifu High-Technology Group Co., Ltd. Jan.-Mar. 2011 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor
services 1,456,797,712.42 761,419,287.88 711,875,710.60 544,597,363.13
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
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned business
capital
Write-back of tax received 9,619,790.95 4,695,694.80
Other cash received concerning
operating activities 5,601,759.92 293,454.14 3,013,148.50 1,986,922.08
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Subtotal of cash inflow arising
from operating activities 1,472,019,263.29 761,712,742.02 719,584,553.90 546,584,285.21
Cash paid for purchasing
commodities and receiving labor
service 1,229,369,538.68 737,043,899.43 575,102,203.72 607,368,109.67
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 127,421,249.42 50,906,182.11 133,901,456.62 68,940,714.76
Taxes paid 157,919,411.89 45,360,892.78 68,933,287.31 27,300,383.24
Other cash paid concerning
operating activities 65,159,975.82 22,885,094.47 29,896,850.36 3,564,999.71
Subtotal of cash outflow arising
from operating activities 1,579,870,175.81 856,196,068.79 807,833,798.01 707,174,207.38
Net cash flows arising from
operating activities -107,850,912.52 -94,483,326.77 -88,249,244.11 -160,589,922.17
II. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
income 9,250,000.00 9,250,000.00
Net cash received from disposal
of fixed, intangible and other
long-term assets 229,542.96 53,242.58 7,981,216.45 7,408,899.52
Net cash received from
disposal of subsidiaries and other
units
Other cash received concerning
investing activities
Subtotal of cash inflow from
investing activities 229,542.96 53,242.58 17,231,216.45 16,658,899.52
Cash paid for purchasing fixed,
intangible and other long-term
assets 143,013,092.88 83,260,554.37 41,569,130.98 14,355,694.14
Cash paid for investment 23,818,800.00 23,818,800.00 123,265,900.00 124,885,900.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
investing activities 166,831,892.88 107,079,354.37 164,835,030.98 139,241,594.14
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Weifu High-Technology Group Co., Ltd. Full-Text of First Quarterly Report 2011
Net cash flows arising from
investing activities -166,602,349.92 -107,026,111.79 -147,603,814.53 -122,582,694.62
III. Cash flows arising from
financing activities
Cash received from absorbing
investment 810,000.00 1,490,490.00
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries 810,000.00 1,490,490.00
Cash received from loans 361,512,141.78 331,512,141.78 758,317,956.54 706,050,000.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
financing activities 362,322,141.78 331,512,141.78 759,808,446.54 706,050,000.00
Cash paid for settling debts 179,024,648.36 149,024,648.36 498,048,025.08 442,048,025.08
Cash paid for dividend and
profit distributing or interest
paying 20,005,382.76 4,221,179.73 10,925,741.04 7,239,868.19
Including: Dividend and profit of
minority shareholder paid by
subsidiaries 15,232,203.03
Other cash paid concerning
financing activities 2,265,668.46
Subtotal of cash outflow from
financing activities 199,030,031.12 153,245,828.09 511,239,434.58 449,287,893.27
Net cash flows arising from
financing activities 163,292,110.66 178,266,313.69 248,569,011.96 256,762,106.73
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
equivalents -111,161,151.78 -23,243,124.87 12,715,953.32 -26,410,510.06
Add: Balance of cash and cash
equivalents at the period -begin 465,219,784.67 85,169,165.70 327,527,351.45 85,790,609.19
VI. Balance of cash and cash
equivalents at the period -end 354,058,632.89 61,926,040.83 340,243,304.77 59,380,099.13
4.4 Auditor’ report
Auditor’s opinions: Un-audited
Board of Directors of
Weifu High-Technology Group Co., Ltd.
23 April 2011
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