Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Stock Code: 000581, 200581 Notice No.: 2013-011 Short Form of the Stock: Weifu High- Tech, Su Weifu-B Weifu High-Technology Group Co., Ltd. Text of First Quarterly Report 2013 Section I. Important Notes 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. 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. All Directors are attended the Board Meeting for Quarterly Report deliberation. 1 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Section II. Main financial data and changes of shareholders I. Main financial data Whether has retroactive adjustment or re-statement on financial data of previous’ period in this report or not □Yes √ No Changes of this period over Jan. – March 2013 Jan. – March 2012 same period of last year (%) Operating income (RMB) 1,334,022,363.78 1,340,401,162.00 -0.48% Net profit attributable to shareholders of 258,992,721.69 247,112,386.65 4.81% the listed company(RMB) Net profit attributable to shareholders of the listed company after deducting 239,141,893.37 245,957,347.71 -2.77% non-recurring gains and losses(RMB) Net cash flow arising from operating 93,309,331.45 135,895,279.94 -31.34% activities(RMB) Basic earnings per share (RMB/Share) 0.38 0.41 -7.32% Diluted earnings per share (RMB/Share) 0.38 0.41 -7.32% Weighted average ROE (%) 2.94% 4.03% -1.09% Changes of this period-end 2013-3-31 2012-12-31 over same period-end of last year (%) Total assets (RMB) 11,809,188,961.15 11,055,973,932.34 6.81% Net assets attributable to shareholder of 8,934,296,356.93 8,655,980,755.24 3.22% listed company (RMB) Items of non-recurring gains and losses √ Applicable □ Not applicable Unit: RMB Amount from year-begin Item Note to period-end Gains/losses from the disposal of non-current asset (including the write-off that accrued 41,172.27 for impairment of assets) Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to 130,000.00 enterprise’s business) Gains and losses from change of fair values of held-for-transaction financial assets and financial liabilities except for the effective hedge business related to normal business of 22,611,866.44 the Company, and investment income from disposal of transactional financial assets and liabilities and financial assets available for sale Other non-operating income and expenditure except for the aforementioned items 650,616.16 2 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Impact on income tax 3,542,392.45 Impact on minority shareholders’ equity (post-tax) 40,434.10 Total 19,850,828.32 -- II. Total number of shareholders at the end of this report period and top ten shareholders Unit: Share Total number of shareholders 30,888 at the end of report period Top ten shareholders Number of share Proportion Amount of Amount of pledged/frozen Shareholder’s name Nature of shareholder of shares restricted shares held State of held (%) shares held Amount share WUXI INDUSTRY DEVELOPMENT State-owned legal 20% 136,039,599 79,311,999 CROUP CO., LTD. person ROBERT BOSCH GMBH Foreign legal person 14% 95,227,600 76,840,400 Domestic China Construction Bank- Fullgoal non-state-owned legal 2.19% 14,880,167 Tianbo Innovation Theme Stock Fund person GAOLING FUND,L.P. Foreign legal person 1.69% 11,492,449 Domestic China Construction Bank- China AMC non-state-owned legal 1.5% 10,181,020 Advantage Growth Stock Fund person Domestic Bank of Communications—Fullgoal non-state-owned legal 1.35% 9,214,230 Tianyi Value Stock Investment Fund person Domestic ICBC—E-fund Value Growth Mix non-state-owned legal 1.23% 8,334,511 Securities Investment Fund person BBH BOS S/A FIDELITY FD - CHINA Foreign legal person 1.19% 8,112,188 FOCUS FD Domestic Agriculture Bank of China – Changsheng non-state-owned legal 1.06% 7,176,960 Tongde Theme Growth Stock Fund person China Merchants Bank Co., Domestic Ltd.—Fullgoal Tianhe Stable Selected non-state-owned legal 0.98% 6,679,482 Stock Securities Investment Fund person Top ten shareholders with unrestricted shares held Amount of unrestricted Type of shares Shareholder’s name shares held Type Amount 3 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD. 56,727,600 RMB common share Domestically listed ROBERT BOSCH GMBH 18,387,200 foreign share China Construction Bank- Fullgoal Tianbo Innovation Theme Stock 14,880,167 RMB common share Fund Domestically listed GAOLING FUND,L.P. 11,492,449 foreign share China Construction Bank- China AMC Advantage Growth Stock 10,181,020 RMB common share Fund Bank of Communications—Fullgoal Tianyi Value Stock Investment 9,214,230 RMB common share Fund ICBC—E-fund Value Growth Mix Securities Investment Fund 8,334,511 RMB common share Domestically listed BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 8,112,188 foreign share Agriculture Bank of China – Changsheng Tongde Theme Growth 7,176,960 RMB common share Stock Fund China Merchants Bank Co., Ltd.—Fullgoal Tianhe Stable Selected 6,679,482 RMB common share Stock Securities Investment Fund Among the top ten shareholders, the Company knew there has no associated relationship between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the Company, and other shareholders; and they do not belong to the consistent actionist regulated by the Management Explanation on associated relationship among the aforesaid Measure of Information Disclosure on Change of shareholders Shareholding for Listed Company. Fullgoal Tianbo Innovation Theme Stock Securities Investment Fund, Fullgoal Tianyi Value Security Investment Fund and Fullgoal Tianhe Stable Selected Stock Securities Investment Fund shares same fund manager –Fullgoal Fund Management Co., Ltd. 4 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Section III. Significant Events I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons 1. Held-to-maturity investment: increasing 30.66% in the report period-end over that of year-begin, mainly due to the increase of trust financing investment in the period. 2. Short-term loans: increasing 328.57% in the report period-end over that of year-begin, mainly due to the need of production and management. 3. Notes payable: increasing 33% in the report period-end over that of year-begin, mainly due to the increase of notes payable settlement business. 4. Tax payable: increasing 146.67% in the report period-end over that of year-begin, mainly because the company operation interest increased and the associated enterprises income tax payable increased. 5. Financial expense: decreasing RMB 23,941,800 in the report period over the same period of last year, mainly because monetary fund increased and the associated internet income increased. 6. Investment income: increasing 122.31% in the report period over the same period of last year, mainly because stock jointly enterprise’ profit increased y-o-y and company’s financial income increased. 7. Other comprehensive income: decreasing 73.02% in the report period over the same period of last year, mainly because the capital reserved reckoned after deduction of deferred income tax from fair value changes of financial assets available for sales decreased y-o-y at period-end. 8. Net cash flow from operation activities: decreasing 31.34% in the report period over the same period of last year, mainly because cash inflow from operation activities decreased y-o-y. 9. Net cash flow from financing activities: decreasing 90.33% in the report period over the same period of last year, mainly due to the fully funded from privately offering of A-stock in same period of last year. II. Analysis and explanation of significant events and their influence and solutions Explanation on part of the projects with fund-raised investment in reporting period: Industrial park project: owes construction qualification at present and has started to build officially in April. Industrialization of tail treatment system products: has changes for investment plan involved, the ―Proposal Report of Change the Investment Plan with Fund-Raised Investment‖ has deliberated and approved in 9th meeting of 7th session of the Board and should submitted for approval from Shareholders General Meeting. Date for Information index for temporary Overview disclosure report disclosure On 21 January 2012, the CSRC approve and issue the ―Reply of Approval of ‖Report of Privately Placement and 2012-02-28 Privately Placement of Weifu High-Technology Group Co., Ltd.‖ (Zheng Jian Summary of Listed Company 5 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Xu Ke [2012] No.: 109) for 112,858,000 new shares offering privately at most. Statement‖ (No.: 2012-12) public on On 10 February 2012, the ―Capital Verification Report‖ (Su Gong W [2012] Juchao Website No. B006) was issued by Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd: ended as 10 February 2012, Weifu High-Tech offered 112,858,000 RMB common shares (A-share), total fund raised amounting as RMB 2,866,028,910.00, and net amount totally raised RMB 2,850,124,252.93 after offering expenses RMB 15,904,657.07 deducted. ―Specific Report of Deposit and Specific Report of Deposit and Application of Fund Raised for year of 2012 2013-03-28 Application of Fund Raised for year of 2012‖ public on Juchao Website ―Announcement of Changes for Investment Plan With Fund Raised Announcement of Changes for Investment Plan With Fund Raised Investment 2013-03-28 Investment ‖ public on Juchao Website III. Commitments make within the report period or persisted to the period by the Company or shareholder with over 5 percent shares held Item of Commitments Promisee Content of commitments Date Term Implementation Non-circulating shares of Weifu Hi-tech held by Weifu Group could not listed or transferred within 60 months since possessing of listing right. After the expiry of the commitment period, original non-circulating shares The would be listed for sale in Shenzhen Stock Exchange, the commitment proportion of sales volume to total share equity of Weifu 2006-04 was being Hi-tech could not exceed 5% within 12 months as well as -05 fulfilled without 10% within 24 months, and sales price ought not to less holdings-reduci than RMB 10 per share (the lowest impairment price of ng shares. Wuxi Industry shares holding would be calculated ex-right at the same Development Share Merger Reform time if share price ought to ex-right according to Group Co., regulation). Ltd 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 governance and shareholders of the Company, Weifu Industry Group Implemented 2006-04 committed: after Weifu High-tech finishing Share Merger after related -05 Reform, under related regulations of the state and Wuxi policy released government in terms of governance encouragement system of listed company, the Group would the stock incentive plan for management level of Weifu High-tech. Commitments in report of acquisition or equity change 6 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 Commitments in assets reorganization Wuxi Industry The privately offering of the Company totally issue Development 112,858,000 A-shares to substantial shareholder Wuxi Commitments in Group Co., Industry Group and foreign strategy investor ROBERT initial public offering Ltd and Implementing BOSCH GMBH. The above said shares are listed for or refinancing ROBERT trading in Shenzhen Stock Exchange since 29 February BOSCH 2012 with 36-month restriction GMBH Other commitments to minority shareholders of the Company Completed on time or Yes not Detail reasons for un-complement and Not-applicable further plan Whether made a promise to horizontal competition and No related transactions that resulted or not Solution term Not-applicable promised Solution way Not-applicable Complementation Implementing IV. Forecast of operation performance from Jan. – June of 2013 Estimation on 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 on reason □Applicable √Not applicable V. Securities Investment Initial Gains Proportion Amount of Proportion investment Amount of and Variety Short cost(RMB) stock-holdi of Book value Code of of stock-holdi loss in Accounti of form of ng at the stock-holdi at the end of Source of securiti the ng securiti securiti beginning stock-holdi ng at the ng at the the period stock es reporti subject es es of the end of the (RMB) ng at the end of the ng period period (%) (RMB) beginning period 7 Weifu High-Technology Group Co., Ltd. Full Text of First Quarterly Report 2013 (Share) of the (Share) period (% Financial SDEC 199,208,000. 288,422,400. assets Subscripti Stock 600841 14,800,000 2.72% 23,680,000 2.72% 0.00 00 00 available on for sales 199,208,000. 288,422,400. Total 14,800,000 -- 23,680,000 -- 0.00 -- -- 00 00 Disclosure date of securities investment 2012-03-24 approval of Board report Statement of holding other listed companies’ equity The company approved participation in the subscription of SDEC non-public offering A share in 23rd Meeting of 6th Session of the Board, subscribing for SDEC non-public offering stocks 14.8 million shares at the price of RMB 13.46 per share, which proportion in total stocks after SDEC non-public offering stocks was 2.72%.The company committed no transfer after the subscription in 12 months, restricted period (23 March 2012-22 March 2013). SDEC implemented the plan of annual profit distribution and converting capital reserve into share capital for 2011 on 4th June 2012.( sending cash of RMB 0.5(tax included) per every 10 shares, converting 6 shares per every 10 shares. In the reporting, the company held SDEC 23.68 million shares. VI. Derivative Investment Derivative investment held at period-end □Applicable √Not applicable Explanation VII. Registration form for receiving research, communication and interview in the report period Date Place Method Type of investors Investor Contents discussed and materials supplied 2013-03-28 Telephone communication Institution Institution Annual Report explanation Board of Director of Weifu High-Technology Group Co., Ltd 25April 2013 8