Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
Weifu High-Technology Group Co., Ltd.
First Quarterly Report 2012
(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 Other directors are attended the Meeting for quarterly report deliberation except for the follow
directors:
Name of absent Title for absentee Reasons for absent Name of entrustee
Rudolf Maier Director Business trip Chen Yudong
Wang Weiliang Director Business trip Chen Xuejun
1.3 The First Quarterly Financial Report of 2012 has not been audited by CPAs.
1.4 Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Works
and 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/decr
report period of the last year
ease (%)
Total assets (RMB) 10,504,347,309.51 7,929,217,436.19 32.48
Owners’ equity attributable to shareholders of
8,232,929,040.93 5,064,060,401.35 62.58
the listed company (RMB)
Total share capital (Share) 680,133,995.00 567,275,995.00 19.89
Net asset per share attributable to shareholders
12.10 8.93 35.50
of listed company (RMB/Share)
Changes of
In the report The same period
increase/decr
period of last year
ease (%)
Total operating income (RMB) 1,340,401,162.00 1,617,839,294.12 -17.15
Net profit attributable to shareholders of the
247,112,386.65 290,729,479.27 -15.00
listed company (RMB)
Net cash flow arising from operating activities
135,895,279.94 -107,850,912.52
(RMB)
Net cash flow arising from operating activities
0.20 -0.19
per share (RMB/Share)
Basic earnings per share (RMB/Share) 0.41 0.51 -19.61
Diluted earnings per share (RMB/Share) 0.41 0.51 -19.61
Weighted average return on equity (%) 4.03 6.84 -2.81
Weighted average return on equity after
4.01 6.84 -2.83
deducting non-recurring gains and losses (%)
Items of non-recurring gains and losses
√ Applicable □ Inapplicable
Unit: RMB
1
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
Amount in year-begin to Remarks (If
Items of non-recurring gains and losses
the end of report period applicable)
Gains and losses from the disposal of non-current asset 1,385,856.03
Other non-operating income and expenditure except for the
235,717.56
aforementioned items
Impact on income tax -398,079.84
Influenced amount of minority shareholders’ equity -68,454.81
Total 1,155,038.94 -
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 33,405
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Amount of tradable
shares with
Full Name of shareholder unrestricted Type of shares
conditions held at the
end of report period
WUXI INDUSTRY DEVELOPMENT
28,363,800 RMB common share
CROUP CO., LTD.
China Construction Bank- Fullgoal Tianbo
20,000,000 RMB common share
Innovation Theme Stock Fund,
ROBERT BOSCH GMBH 18,387,200 Domestically listed foreign share
GUOTAI JUNAN
12,733,479 Domestically listed foreign share
SECURITIES(HONGKONG) LIMITED
GAOLING FUND,L.P. 12,502,715 Domestically listed foreign share
DRAGON BILLION CHINA MASTER
10,936,046 Domestically listed foreign share
FUND
China Construction Bank- China AMC
9,103,321 RMB common share
Advantage Growth Stock Fund
Agriculture Bank of China – Changsheng
8,805,148 RMB common share
Tongde Theme Growth Stock Fund
Bank of Communications—E-fund Kexun
8,600,000 RMB common share
Stock Investment Fund
Bank of Communications—fulgoal Tianyi
7,792,449 RMB common share
Value Stock Investment Fund
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
Administrative expense gains a 37.52% down y-o-y in report period, mainly due to the order in this
first quarter less than same period of last year, the Company strictly control vary expenditures.
Financial expense gains a 57.43% down y-o-y in report period, mainly because privately offering of
A-stock has completed in February, current capital was supplied and return loans to bank, and then
financial expenses reduced.
Investment income gains a 49.19% down y-o-y in report period, mainly because auto industry market
in first quarter shows totally down over same period of last, major stock jointly enterprise has a
decline in performance, resulted a decrease of investment income.
Current liability has a 24.29% down over that of year-begin, mainly because privately offering of
2
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
A-stock has completed in February, current capital was supplied and return loans to bank
Monetary capital gains a 257.10% up over that of year-begin, current assets has 51.3% over that of
year-begin, capital reserve gains 313.52% over that of year-begin, equity attributable to shareholders
of parent company has a 62.58 growth over year-begin and total assets show a 32.48% up over that of
year-begin mainly because privately offering of A-stock has completed, capital raised has fully
funded.
Cash outflow from operating activities have a 29.49% down y-o-y in report period, mainly because
cash paid for goods purchased and labor received decreased.
Cash outflow from investment activities gains a 40.40% up y-o-y in report period, mainly due to the
participation of privately offering of SDEC.
Cash inflow from financing activities has dramatically growth mainly due to the fully funded from
privately offering of A-stock.
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
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 Implementati
Promisee Content of commitments
Commitments on
Non-tradable stocks of Weifu Hi-Tech, held by Industry
Group, should not be listed or transferred within 60 months
since right of trading obtained. When commitment terms The
Wuxi expires, listed for trading in Shenzhen Stock Exchange for commitment
Commitments
Industry original non-tradable stocks, with total sales amount no in process of
for Share
Developme more than 5% of total share capital of Weifu Hi-Tech in 12 implementati
Merger
nt Group months and no more than 10% of total share capital of on and no
Reform
Co., Ltd. Weifu Hi-Tech in 24 months for sales price of no less than shares held
10 yuan per share(if ex-rights occurred in line with reduction.
regulations, calculated based on minimum price of
reduction for ex-rights exercised)
Commitments
made in
Acquisition
Report or Inapplicable Inapplicable Inapplicable
Reports on
Change in
Interests
Commitments
made in Inapplicable Inapplicable Inapplicable
Material
3
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
Assets
Reorganizatio
n
Wuxi
Industry
Developme Totally 112.858 million A-stocks, privately offered to
Commitments nt Group largest shareholder Wuxi Industry Group and foreign In process of
made in Co., Ltd. strategy investor ROBERT BOSCH GMBH, have listing in implementati
issuing and Shenzhen Stock Exchange dated 29 February 2012 with on
ROBERT limited sales period of 36 months.
BOSCH
GMBH
In order to promote the listed company’s steady and healthy The said
development, fully mobilize senior executives so as to commitment
Other
Wuxi ensure to combine the interests of the governance and is being
commitments
Industry shareholders of the Company, Weifu Industry Group implemented
(including
Developme committed: after Weifu High-tech finishing Share Merger , and would
additional
nt Group Reform, under related regulations of the state and Wuxi be performed
commitments
Co., Ltd. government in terms of governance encouragement system since related
)
of listed company, the Group would the stock incentive policy is
plan for management level of Weifu High-tech. perfected.
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
Unit: RMB
Ratio in
total Gains/
Amount
Initial security losses
Seria Shot held at Book value at
Type Code investment investment in
l form period-end period-end
amount (RMB) at report
(Share)
period-end period
(%)
1 Stock 600841 SDEC 199,208,000.00 14,800,000 270,840,000.00 100.00 0.00
Other security investment held
0.00 - 0.00 0.00 0.00
at period-end
Gains/losses of security
- - - - 0.00
investment sold in report period
Total 199,208,000.00 - 270,840,000.00 100 0.00
Explanation of securities investment
Participated in subscription of SDEC privately offering of A-stocks was deliberated and approved in
23rd Meeting of 6th Session of the Board. Subscribe 14,800,000 shares of SDEC with 13.46 yuan per
share, a 2.72% in total share capital of SDEC after privately offering. The Company promised not to
transfer the shares within 12 months since subscription, limited sales terms (23 March 2012 to 22
March 2013), book value at period-end amounting to RMB 270,840,000.00.
4
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
3.5.2 Registration form for receiving research, communication and interview in the report
period
Type of Contents discussed and
Date Place Method Investor
investors materials supplied
Conference room Spot China Merchants Analysis of market for
2012-03-02 Institution
of the Company research Securities year of 2012
CITIC Securities,
Conference room Spot Analysis of market for
2012-03-07 Institution Ping An
of the Company research year of 2012
Securities
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Weifu High-Technology Group Co., Ltd. March 31, 2012 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 3,053,413,460.82 2,635,035,767.58 855,053,599.38 189,135,416.49
Settlement provisions
Capital lent
Transaction finance
asset
Notes receivable 1,284,100,773.43 491,652,648.50 1,227,018,757.27 440,248,528.54
Accounts receivable 1,205,877,235.22 729,872,203.64 1,167,123,155.04 822,357,590.99
Accounts paid in
137,944,012.16 48,991,333.08 183,407,859.04 58,227,907.25
advance
Insurance receivable
Reinsurance
receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 11,284,009.80 187,775,719.41 11,983,410.88 167,045,153.49
Purchase restituted
finance asset
Inventories 862,209,345.74 274,861,857.86 883,582,090.78 296,385,165.44
Non-current asset due
within one year
Other current assets 9,121,142.63 10,235,025.21
Total current assets 6,563,949,979.80 4,368,189,530.07 4,338,403,897.60 1,973,399,762.20
Non-current assets:
Granted loans and
advances
Finance asset available
270,840,000.00 270,840,000.00
for sales
Held-to-maturity
5
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
investment
Long-term account
2,621,950,821.80
receivable
Long-term equity
1,842,178,454.38 1,786,481,972.85 2,576,168,955.22
investment
Investment property 4,234,491.08 4,352,211.86
Fixed assets 1,398,213,116.77 696,548,692.00 1,357,509,509.59 689,680,279.76
Construction in
80,736,312.22 33,897,813.39 98,288,407.69 56,239,272.06
progress
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 248,269,678.66 186,859,581.99 249,921,186.58 187,843,427.92
Expense on Research
and Development
Goodwill 1,784,086.79 1,784,086.79
Long-term expenses to
10,843,435.56 9,144,280.20
be apportioned
Deferred income tax
83,297,754.25 47,870,330.94 83,331,883.03 47,881,534.77
asset
Other non-current asset
Total non-current asset 3,940,397,329.71 3,857,967,240.12 3,590,813,538.59 3,557,813,469.73
Total assets 10,504,347,309.51 8,226,156,770.19 7,929,217,436.19 5,531,213,231.93
Current liabilities:
Short-term loans 495,000,000.00 465,000,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 150,740,009.18 70,600,719.79 164,301,719.94 85,000,000.00
Accounts payable 1,258,853,982.39 695,932,342.37 1,297,893,239.74 632,112,594.66
Accounts received in
50,851,482.78 9,738,475.46 55,289,941.25 8,150,899.35
advance
Selling financial asset
of repurchase
Commission charge
and commission
payable
Wage payable 237,099,958.89 151,470,141.23 278,771,987.97 175,803,158.72
Taxes payable 51,551,828.45 29,381,125.52 77,737,123.74 25,748,688.27
Interest payable 150,000.00 930,000.00 780,000.00
Dividend payable 3,444,762.15 3,444,762.15
Other accounts payable 97,270,088.54 143,745,805.07 83,991,571.43 69,856,690.02
Reinsurance payables
Insurance contract
6
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
reserve
Security trading of
agency
Security sales of
agency
Non-current liabilities
3,000,000.00 3,000,000.00
due within 1 year
Other current liabilities 35,899,875.20 354,088.81 34,608,609.47
Total current liabilities 1,888,861,987.58 1,101,222,698.25 2,494,968,955.69 1,462,452,031.02
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account
18,840,000.00 18,840,000.00
payable
Special accounts
payable
Projected liabilities
Deferred income tax
2,689,975.40 2,689,975.40
liabilities
Other non-current
72,754,000.00 56,830,000.00 72,330,000.00 56,830,000.00
liabilities
Total non-current
94,283,975.40 56,830,000.00 93,859,975.40 56,830,000.00
liabilities
Total liabilities 1,983,145,962.98 1,158,052,698.25 2,588,828,931.09 1,519,282,031.02
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or
680,133,995.00 680,133,995.00 567,275,995.00 567,275,995.00
share capital)
Capital public reserve 3,704,816,669.52 3,732,880,059.50 895,918,416.59 923,981,806.57
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 3,564,340,378.91 2,371,452,019.94 3,317,227,992.26 2,237,035,401.84
Balance difference of
foreign currency
translation
Total owner’s equity
attributable to parent 8,232,929,040.93 7,068,104,071.94 5,064,060,401.35 4,011,931,200.91
company
Minority interests 288,272,305.60 276,328,103.75
Total owner’s equity 8,521,201,346.53 7,068,104,071.94 5,340,388,505.10 4,011,931,200.91
Total liabilities and
10,504,347,309.51 8,226,156,770.19 7,929,217,436.19 5,531,213,231.93
owner’s equity
4.2 Profit statement
Prepared by Weifu High-Technology Group Co., Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
7
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
I. Total operating income 1,340,401,162.00 616,385,500.52 1,617,839,294.12 833,816,030.01
Including: Operating income 1,340,401,162.00 616,385,500.52 1,617,839,294.12 833,816,030.01
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 1,100,555,033.67 511,201,456.35 1,386,509,213.86 765,447,648.44
Including: Operating cost 961,216,532.17 464,156,439.59 1,184,963,972.83 686,865,102.01
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 8,698,657.37 3,159,692.80 9,261,487.17 2,765,743.21
Sales expenses 32,174,467.18 15,605,300.26 32,177,349.01 15,345,785.51
Administration expenses 94,358,713.40 26,377,395.55 151,019,027.30 55,378,432.40
Financial expenses 4,148,213.42 1,902,628.15 9,744,277.83 5,015,193.28
Losses of devaluation of
-41,549.87 -656,900.28 77,392.03
asset
Add: Changing income of
fair value(Loss is listed with
“-”)
Investment income (Loss is
55,696,481.53 45,781,866.58 109,618,904.88 96,625,366.65
listed with “-”)
Including: Investment
income on affiliated 55,696,481.53 45,781,866.58 109,618,904.88 96,625,366.65
company and joint venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss
295,542,609.86 150,965,910.75 340,948,985.14 164,993,748.22
is listed with “-”)
Add: Non-operating income 1,994,685.70 210,625.24 39,500.48
Less: Non-operating expense 1,600,349.95 894,684.94 2,096,976.41 1,044,989.10
Including: Disposal loss of
1,385,856.03 255,884.44 344,580.11 190,448.07
non-current asset
IV. Total Profit (Loss is
295,936,945.61 150,071,225.81 339,062,633.97 163,988,259.60
listed with “-”)
Less: Income tax 36,880,357.12 15,654,607.71 33,879,944.33 10,107,953.11
V. Net profit (Net loss is
259,056,588.49 134,416,618.10 305,182,689.64 153,880,306.49
listed with “-”)
Net profit attributable to
owner’s equity of parent 247,112,386.65 134,416,618.10 290,729,479.27 153,880,306.49
company
8
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
Minority shareholders’
11,944,201.84 14,453,210.37
gains and losses
VI. Earnings per share
i. Basic earnings per share 0.41 0.51
ii. Diluted earnings per share 0.41 0.51
VII. Other consolidated
71,632,000.00 71,632,000.00
income
VIII. Total consolidated
330,688,588.49 206,048,618.10 305,182,689.64 153,880,306.49
income
Total consolidated income
attributable to owners of 318,744,386.65 206,048,618.10 290,729,479.27 153,880,306.49
parent company
Total consolidated income
attributable to minority 11,944,201.84 14,453,210.37
shareholders
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. 2012 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 1,229,403,560.43 762,266,756.05 1,456,797,712.42 761,419,287.88
labor 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
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 10,441,404.81 9,619,790.95
9
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
Other cash received
concerning operating 9,985,294.76 3,014,306.18 5,601,759.92 293,454.14
activities
Subtotal of cash inflow
arising from operating 1,249,830,260.00 765,281,062.23 1,472,019,263.29 761,712,742.02
activities
Cash paid for purchasing
commodities and receiving 751,309,501.19 328,246,426.73 1,229,369,538.68 737,043,899.43
labor service
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
136,574,532.95 52,954,159.55 127,421,249.42 50,906,182.11
workers
Taxes paid 156,144,880.47 46,932,499.52 157,919,411.89 45,360,892.78
Other cash paid concerning
69,906,065.45 31,480,068.85 65,159,975.82 22,885,094.47
operating activities
Subtotal of cash outflow
arising from operating 1,113,934,980.06 459,613,154.65 1,579,870,175.81 856,196,068.79
activities
Net cash flows arising from
135,895,279.94 305,667,907.58 -107,850,912.52 -94,483,326.77
operating activities
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
investment income
Net cash received from
disposal of fixed, intangible 558,246.95 3,076.92 229,542.96 53,242.58
and other long-term assets
Net cash received from
disposal of subsidiaries and
other units
Other cash received
concerning investing
activities
Subtotal of cash inflow from
558,246.95 3,076.92 229,542.96 53,242.58
investing activities
Cash paid for purchasing 35,028,155.94 11,272,777.35 143,013,092.88 83,260,554.37
10
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
fixed, intangible and other
long-term assets
Cash paid for investment 199,208,000.00 199,208,000.00 23,818,800.00 23,818,800.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow
234,236,155.94 210,480,777.35 166,831,892.88 107,079,354.37
from investing activities
Net cash flows arising from
-233,677,908.99 -210,477,700.43 -166,602,349.92 -107,026,111.79
investing activities
III. Cash flows arising from
financing activities
Cash received from
2,866,028,910.00 2,866,028,910.00 810,000.00
absorbing investment
Including: Cash received
from absorbing minority
810,000.00
shareholders’ investment by
subsidiaries
Cash received from loans 570,000,000.00 570,000,000.00 361,512,141.78 331,512,141.78
Cash received from issuing
bonds
Other cash received
concerning financing
activities
Subtotal of cash inflow from
3,436,028,910.00 3,436,028,910.00 362,322,141.78 331,512,141.78
financing activities
Cash paid for settling debts 1,065,000,000.00 1,035,000,000.00 179,024,648.36 149,024,648.36
Cash paid for dividend and
profit distributing or interest 6,100,872.13 5,649,955.46 20,005,382.76 4,221,179.73
paying
Including: Dividend and
profit of minority
15,232,203.03
shareholder paid by
subsidiaries
Other cash paid concerning
10,668,810.60 10,668,810.60
financing activities
Subtotal of cash outflow
1,081,769,682.73 1,051,318,766.06 199,030,031.12 153,245,828.09
from financing activities
Net cash flows arising from
2,354,259,227.27 2,384,710,143.94 163,292,110.66 178,266,313.69
financing activities
IV. Influence on cash and
cash equivalents due to
fluctuation in exchange rate
V. Net increase of cash and
2,256,476,598.22 2,479,900,351.09 -111,161,151.78 -23,243,124.87
cash equivalents
Add: Balance of cash and 745,778,764.22 132,135,416.49 465,219,784.67 85,169,165.70
11
Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2012
cash equivalents at the
period -begin
VI. Balance of cash and cash
equivalents at the period 3,002,255,362.44 2,612,035,767.58 354,058,632.89 61,926,040.83
-end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
Board of Directors of
Weifu High-Technology Group Co., Ltd.
18 April 2012
12
