无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Weifu High-Technology Group Co., Ltd. First Quarterly Report 2016 April 2016 1 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 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 should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint. All Directors are attended the Board Meeting for Quarterly Report deliberation 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 authentic, accurate and complete. 2 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Section II. Main financial data and changes of shareholders I. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not □Yes √ No Changes of this period over Current Period Same period of last year same period of last year Operating income (RMB) 1,533,288,775.97 1,782,232,936.10 -13.97% Net profit attributable to shareholders of 405,471,329.51 434,369,050.00 -6.65% the listed company(RMB) Net profit attributable to shareholders of the listed company after deducting 331,616,138.91 389,141,510.92 -14.78% non-recurring gains and losses(RMB) Net cash flow arising from operating 42,831,760.61 208,387,101.74 -79.45% activities(RMB) Basic earnings per share (RMB/Share) 0.40 0.43 -6.98% Diluted earnings per share (RMB/Share) 0.40 0.43 -6.98% Weighted average ROE 3.39% 3.90% -0.51% Changes of this period-end End of this period End of last period over same period-end of last year Total assets (RMB) 16,058,436,670.63 15,704,093,069.04 2.26% Net assets attributable to shareholder of 12,107,550,713.29 11,783,228,273.39 2.75% listed company (RMB) Items of non-recurring gains and losses √ Applicable □ Not applicable In RMB Amount from year-begin Item Note to period-end Gains/losses from the disposal of non-current asset (including the write-off that -341,910.75 accrued 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 11,897,883.66 closely relevant to enterprise’s business) Held transaction financial asset, gains/losses of changes of fair values from 78,726,740.93 3 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 transaction financial liabilities, and investment gains from disposal of transaction financial asset, transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company Other non-operating income and expenditure except for the aforementioned 1,441,909.05 items Relocation expenses -4,417,030.41 Less : impact on income tax 13,223,541.83 Impact on minority shareholders’ equity (post-tax) 228,860.05 Total 73,855,190.60 -- Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons □ Applicable √ Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss II. Total number of shareholders at the end of this report period and top ten shareholders 1. Common and preferred stockholders with voting rights recover and the top ten share-holding In Share Total common shareholders at the Total preferred stockholders with voting rights 58,573 0 end of report period recover at the end of report period (if applicable) Top ten shareholders Amount of Number of share Proportion Amount of Nature of pledged/frozen Shareholder’s name of shares restricted shares shareholder shares held held held State of share Amount WUXI INDUSTRY DEVELOPMENT State-owned 20.22% 204,059,398 CROUP CO., LTD. legal person Foreign legal ROBERT BOSCH GMBH 14.16% 142,841,400 person China Securities Finance Corporation State-owned 2.87% 28,941,255 Limited legal person Foreign legal UBS AG 2.08% 20,978,262 person Kang Jian Assets Management Foreign legal 1.51% 15,230,392 4 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Company-Clients Fund person Central Huijin Assets Management Co., State-owned 1.27% 12,811,200 Ltd. legal person BBH BOS S/A FIDELITY FD - CHINA Foreign legal 1.23% 12,382,279 FOCUS FD person Foreign legal Puxin Investment Company – clients fund 1.12% 11,347,877 person Foreign legal MERRILL LYNCH INTERNATIONAL 1.07% 10,828,901 person RBC EMERGING MARKETS EQUITY Foreign legal 0.78% 7,826,264 FUND person Top ten shareholders with unrestricted shares held Amount of Type of shares Shareholder’s name unrestricted shares Type Amount held WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD. 204,059,398 RMB common share 204,059,398 RMB common share 115,260,600 ROBERT BOSCH GMBH 142,841,400 Domestically listed 27,580,800 foreign share China Securities Finance Corporation Limited 28,941,255 RMB common share 28,941,255 UBS AG 20,978,262 RMB common share 20,978,262 Kang Jian Assets Management Company-Clients Fund 15,230,392 RMB common share 15,230,392 Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common share 12,811,200 Domestically listed BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 12,382,279 12,382,279 foreign share Puxin Investment Company – clients fund 11,347,877 RMB common share 11,347,877 MERRILL LYNCH INTERNATIONAL 10,828,901 RMB common share 10,828,901 Domestically listed RBC EMERGING MARKETS EQUITY FUND 7,826,264 7,826,264 foreign share 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 Note of related relationship among the above shareholders and the Company, and other shareholders; and they do not belong concerted actors to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. Explanation on top ten common stock shareholders involving Not applicable securities margin trading (if applicable) 5 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period. 2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferred stock held □ Applicable √ Not applicable 6 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Section III. Significant Events I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons √ Applicable □ Not applicable 1. Monetary Fund: decreasing RMB 2,129,256,000 in period-end over that of year beginning with 65.02% down, mainly due to the growth in purchase of financial product at period-end; 2. Account receivable: increasing RMB 370,425,400 in period-end over that of year beginning with 29.37% up, mainly due to the growth of sales speed with link-relative method; 3. Other current assets: increasing RMB 1,948,441,400 in period-end over that of year beginning with 96.64% up, mainly due to purchasing entrust financial products in the Period increased; 4. Deferred income tax liabilities: decreasing RMB 14,400,000 in period-end over that of year beginning with 40.56% down, mainly due to the decline of fair value of the financial assets at period-end; 5. Other comprehensive income: decreasing RMB 81,440,200 in period-end over that of year beginning with 43.22% down, mainly due to the decline of fair value of financial assets available for sale at period-end; 6. Non-operation revenue: increasing RMB 12,825,100 from a year earlier, mainly because the depreciation of re-location capitalization recognized and amortization costs in the Period; 7. Non-operation expenditure: decreasing RMB 18,538,700 from a year earlier, mainly because the re-location compensation paid in the Period decrease over that of last period; 8. Net cash flow from operation activities: decreasing RMB 165,555,300 in period-end over the same period of last year with 79.45% down, mainly because sales in the period decrease over that of last period; 9. Net cash flow from investment activities: accumulating RMB 2,024,112,600 outflow in period-end over the same period of last year, mainly due to the outflow in purchase of financial product in the Period; II. Analysis and explanation of significant events and their influence and solutions √ Applicable □ Not applicable Explanation on the projects with fund-raised investment: Investment for fund-raising project has completed. Up to 29 Feb. 2016, the Company accumulated use RMB 2,826,474,300 fund-raising. Balance of fund-raising account on 29 Feb. 2016 amounting to RMB 133,218,400, including surplus RMB 23,650,000 and interest income RMB 109,568,400. "Proposal of supplement current fund with surplus fund-raising and interest income permanently" has been deliberated and approved by 5th meeting of 8th session of the board, the surplus fund-raising and interest income RMB 133218400 (actual amount based on the date transfer to self-owned account) supplement current fund permanently. The special fund-raising account will be cancel after supplement current fund permanently 7 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Date for Overview Information index for temporary report disclosure disclosure Being approved by the "reply on approving non-public issuance of Weifu High-technology Group Co., Ltd. (ZJXK(2012)No.109)" from CSRC, the Company "Private Placement of the Company and Summary of non-publicaly offering 112,858,000 shares with price of 2012-02-28 Listed Company Statement" (Notice No.: 2012-12) RMB 25.395 per share. The shares are listed in Shenzhen released on Juchao Website (www.cninfo.com.cn) Stock Exchange since 29 Feb. 2012. Total RMB2, 866,028,900 fund-raising, net capital amounts to RMB2, 850,124,300 after deducting offering costs. Special report on fund-raising saving and utilizing for year of 2012 2013-03-28 Released on Juchao Website (www.cninfo.com.cn) "resolution of 9th meeting of 7th session of the board " (Notice No.: 2013-001) and "notice of change the Deliberated and approved the "proposal report of change 2013-03-28 investment plan with fund-raising " (Notice No.: the investment plan with fund-raising" on 9th meeting of 2013-007) released on Juchao Website 7th session of the board held on 26 March 2013 and on (www.cninfo.com.cn) AGM 2012 held on 23 May 2013 (www.cninfo.com.cn) "resolution of AGM 2012" 2013-05-24 (Notice No.: 2013-014) released on Juchao Website (www.cninfo.com.cn) Special report on fund-raising saving and utilizing for year of 2013 2014-04-15 Released on Juchao Website (www.cninfo.com.cn) Special report on fund-raising saving and utilizing for year of 2014 2015-04-23 Released on Juchao Website (www.cninfo.com.cn) "resolution of 21st meeting of 7th session of the board " (Notice No.: 2015-003) and "notice of proposal of Deliberated and approved the report of "proposal of adjusting part of the investment plan with fund-raising 2015-04-23 adjusting part of the investment plan with fund-raising and and capacity and change projects with fund-raising capacity and change projects with fund-raising involved" on involved " (Notice No.: 2015-010) released on Juchao 21st meeting of 7th session of the board held on 21 April Website (www.cninfo.com.cn) 2015 and on AGM 2014 held on 28 May 2015 2015-05-29 "resolution of AGM 2014" (Notice No.: 2015-016) released on Juchao Website (www.cninfo.com.cn) Special report on fund-raising saving and utilizing for year 2016-04-19 Released on Juchao Website (www.cninfo.com.cn) of 2015 Notice of supplement current fund with surplus fund-raising 2016-04-19 Released on Juchao Website (www.cninfo.com.cn) and interest income permanently 8 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 III. Commitments completed during the Period and those un-completed as of the period-end from the Company, shareholders, actual controller, buyer, director, supervisor, senior executives or other related party □Applicable √Not applicable The Company has no commitments completed during the Period and those un-completed as of the period-end from the Company, shareholders, actual controller, buyer, director, supervisor, senior executives or other related party IV. Predict of the business performance from January to June 2016 Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year □Applicable √Not applicable V. Securities Investment √ Applicable □ Not applicable Amount Proportio Amount of n of of Proportio Initial stock-hol Book n of Gains and Short investmen ding at stock-hol stock-hol value at Variety of Code of stock-hol loss in the Accounti Source of form of t the the end of securities securities ding at the ding at ding at reporting ng subject stock securities cost(RM beginning the period the end of (RMB) B) of the beginning the end of (RMB) the period period of the the period (Share) period (Share) Financial 199,208,0 23,680,00 20,870,00 264,214,2 -59,861,3 assets Subscript Stock 600841 SDEC 2.73% 2.41% 00.00 0 0 00.00 13.74 available ion for sales Financial Miracle 69,331,50 72,345,60 -21,578,8 assets Subscript Stock 002009 4,710,000 1.29% 4,710,000 1.29% Logistics 0.00 0.00 65.00 available ion for sales 268,539,5 28,390,00 25,580,00 336,559,8 -81,440,1 Total -- -- -- -- 00.00 0 0 00.00 78.74 Disclosure date of securities 2012-03-24 investment approval by the 2013-06-04 Board Disclosure date of securities investment approval by shareholders meeting (if applicable) 9 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 VI. Derivative investment □ Applicable √ Not applicable No derivative investment in the Period. VII. Registration form for receiving research, communication and interview in the report period √ Applicable □ Not applicable Type of Date Method Index for the interview and research investors The Company answered 76 questions for investors online through 1 Jan. 2016 to 31 Written inquiries Other the investor relations interactive Mar. 2016 platform(http://irm.p5w.net/dqhd/sichuan/) 1 Jan. 2016 to 31 Basic condition of the Company and the market for year of 2016, Telephone communication Other Mar. 2016 communicate with more than 50 investors through telephone VIII. External security against the rules □ Applicable √ Not applicable The Company has no external security against the rules in the Period IX. Controlling shareholders' and its related party's non-business capital occupying of the listed company □ Applicable √ Not applicable There are no controlling shareholders' and its related party's non-business capital occupying of the listed company 10 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Section IV. Financial Statement I. Financial statement 1. Consolidate balance sheet Prepared by Weifu High-Technology Group Co., Ltd 2016-03-31 In RMB Item Closing balance Opening balance Current assets: Monetary funds 1,145,423,651.78 3,274,679,732.54 Settlement provisions Capital lent Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable 968,978,217.27 1,031,886,230.18 Accounts receivable 1,631,588,602.25 1,261,163,184.87 Accounts paid in advance 89,321,828.68 73,326,550.19 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Interest receivable 2,667,653.41 3,281,939.96 Dividend receivable 3,600,000.00 Other receivables 9,985,308.03 8,817,661.08 Purchase restituted finance asset Inventories 923,340,797.77 865,574,792.41 Divided into assets held for sale Non-current asset due within one year Other current assets 3,964,645,952.20 2,016,204,649.28 Total current assets 8,735,952,011.39 8,538,534,740.51 Non-current assets: Loans and payments on behalf 11 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Finance asset available for sales 594,947,561.00 694,398,661.00 Held-to-maturity investment Long-term account receivable Long-term equity investment 3,531,498,892.87 3,283,584,245.43 Investment property 19,981,259.69 20,233,111.93 Fixed assets 2,333,831,001.11 2,320,627,323.42 Construction in progress 166,267,175.07 162,402,752.68 Engineering material Disposal of fixed asset Productive biological asset Oil and gas asset Intangible assets 356,811,313.73 360,610,837.42 Expense on Research and Development Goodwill 1,784,086.79 1,784,086.79 Long-term expenses to be apportioned 13,647,647.94 14,004,911.64 Deferred income tax asset 162,098,515.68 158,873,725.37 Other non-current asset 141,617,205.36 149,038,672.85 Total non-current asset 7,322,484,659.24 7,165,558,328.53 Total assets 16,058,436,670.63 15,704,093,069.04 Current liabilities: Short-term loans 263,000,000.00 360,000,000.00 Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable 595,722,933.29 630,682,394.24 Accounts payable 1,640,958,365.17 1,463,607,938.95 Accounts received in advance 28,667,575.02 33,545,363.49 Selling financial asset of repurchase Commission charge and commission payable Wage payable 214,472,569.99 245,070,941.07 Taxes payable 80,933,242.19 52,389,865.33 12 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Interest payable 2,339,505.55 778,673.59 Dividend payable Other accounts payable 45,998,058.18 49,333,826.26 Reinsurance payables Insurance contract reserve Security trading of agency Security sales of agency Divided into liability held for sale Non-current liabilities due within 1 year 60,000,000.00 60,000,000.00 Other current liabilities Total current liabilities 2,932,092,249.39 2,895,409,002.93 Non-current liabilities: Long-term loans Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable 18,174,545.00 18,174,545.00 Long-term wages payable 96,350,000.00 96,350,000.00 Special accounts payable 32,070,244.20 44,725,048.69 Projected liabilities Deferred income 407,864,019.56 400,657,991.06 Deferred income tax liabilities 21,099,766.39 35,499,320.90 Other non-current liabilities Total non-current liabilities 575,558,575.15 595,406,905.65 Total liabilities 3,507,650,824.54 3,490,815,908.58 Owner’s equity: Share capital 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 3,396,935,227.97 3,396,935,227.97 Less: Inventory shares Other comprehensive income 106,996,193.76 188,436,372.50 Reasonable reserve 1,205,937.22 914,648.09 13 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Surplus public reserve 510,100,496.00 510,100,496.00 Provision of general risk Retained profit 7,083,362,288.34 6,677,890,958.83 Total owner’s equity attributable to parent company 12,107,550,713.29 11,783,228,273.39 Minority interests 443,235,132.80 430,048,887.07 Total owner’s equity 12,550,785,846.09 12,213,277,160.46 Total liabilities and owner’s equity 16,058,436,670.63 15,704,093,069.04 Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 2. Balance Sheet of Parent Company In RMB Item Closing balance Opening balance Current assets: Monetary funds 701,020,819.91 1,739,313,657.29 Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial assets Notes receivable 134,987,161.57 159,630,301.53 Accounts receivable 640,610,198.45 537,504,587.17 Account paid in advance 53,277,879.97 50,246,196.23 Interest receivable 33,287.67 33,287.67 Dividends receivable 3,600,000.00 Other receivables 82,020,402.29 81,906,796.95 Inventories 172,789,086.38 151,832,151.38 Divided into assets held for sale Non-current assets maturing within one year Other current assets 3,881,307,373.01 2,038,225,831.05 Total current assets 5,666,046,209.25 4,762,292,809.27 Non-current assets: Available-for-sale financial assets 509,007,561.00 608,458,661.00 Held-to-maturity investments Long-term receivables Long-term equity investments 4,466,895,733.46 4,241,205,473.10 14 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Investment property Fixed assets 1,425,620,915.20 1,417,143,347.25 Construction in progress 72,130,814.00 60,582,501.19 Project materials Disposal of fixed assets Productive biological assets Oil and natural gas assets Intangible assets 197,980,850.50 199,636,812.43 Research and development costs Goodwill Long-term deferred expenses Deferred income tax assets 88,977,146.59 86,269,470.27 Other non-current assets 56,054,218.17 80,413,247.85 Total non-current assets 6,816,667,238.92 6,693,709,513.09 Total assets 12,482,713,448.17 11,456,002,322.36 Current liabilities: Short-term borrowings 180,000,000.00 230,000,000.00 Financial liability measured by fair value and with variation reckoned into current gains/losses Derivative financial liability Notes payable 142,849,077.80 218,219,397.80 Accounts payable 426,441,566.96 473,825,553.93 Accounts received in advance 4,005,762.43 4,754,011.37 Wage payable 104,272,966.95 118,032,003.11 Taxes payable 29,754,397.66 16,992,552.61 Interest payable 292,886.11 292,886.11 Dividend payable Other accounts payable 1,022,335,837.18 12,757,135.96 Divided into liability held for sale Non-current liabilities due within 1 year Other current liabilities Total current liabilities 1,909,952,495.09 1,074,873,540.89 Non-current liabilities: Long-term loans 15 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Bonds payable Including: preferred stock Perpetual capital securities Long-term account payable Long-term wages payable 96,350,000.00 96,350,000.00 Special accounts payable 13,805,162.09 26,459,966.58 Projected liabilities Deferred income 384,065,162.48 382,179,400.68 Deferred income tax liabilities 18,881,681.24 33,253,477.50 Other non-current liabilities Total non-current liabilities 513,102,005.81 538,242,844.76 Total liabilities 2,423,054,500.90 1,613,116,385.65 Owners’ equity: Share capita 1,008,950,570.00 1,008,950,570.00 Other equity instrument Including: preferred stock Perpetual capital securities Capital public reserve 3,427,939,852.32 3,427,939,852.32 Less: Inventory shares Other comprehensive income 106,996,193.76 188,436,372.50 Reasonable reserve Surplus reserve 510,100,496.00 510,100,496.00 Retained profit 5,005,671,835.19 4,707,458,645.89 Total owner’s equity 10,059,658,947.27 9,842,885,936.71 Total liabilities and owner’s equity 12,482,713,448.17 11,456,002,322.36 3. Consolidated Profit Statement In RMB Item Current Period Last Period I. Total operating income 1,533,288,775.97 1,782,232,936.10 Including: Operating income 1,533,288,775.97 1,782,232,936.10 Interest income Insurance gained Commission charge and commission income 16 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 II. Total operating cost 1,418,885,132.32 1,594,439,479.81 Including: Operating cost 1,206,816,524.58 1,398,503,056.75 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 7,363,242.92 8,372,176.77 Sales expenses 41,901,472.33 40,270,235.07 Administration expenses 162,096,345.31 143,020,801.13 Financial expenses -3,425,613.24 4,682,584.75 Losses of devaluation of asset 4,133,160.42 -409,374.66 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 326,641,388.36 321,657,642.05 Including: Investment income on affiliated company and joint venture 247,914,647.43 245,856,767.36 Exchange income (Loss is listed with “-”) III. Operating profit (Loss is listed with “-”) 441,045,032.01 509,451,098.34 Add: Non-operating income 14,148,099.42 1,322,998.18 Including: Disposal gains of non-current asset 581,224.18 353,144.72 Less: Non-operating expense 6,147,971.59 24,686,741.44 Including: Disposal loss of non-current asset 923,134.93 612,226.62 IV. Total Profit (Loss is listed with “-”) 449,045,159.84 486,087,355.08 Less: Income tax expense 30,393,099.94 40,136,502.79 V. Net profit (Net loss is listed with “-”) 418,652,059.90 445,950,852.29 Net profit attributable to owner’s of parent company 405,471,329.51 434,369,050.00 Minority shareholders’ gains and losses 13,180,730.39 11,581,802.29 VI. Net after-tax of other comprehensive income -81,440,178.74 101,298,410.00 Net after-tax of other comprehensive income attributable to owners of -81,440,178.74 101,298,410.00 parent company (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 17 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -81,440,178.74 101,298,410.00 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -81,440,178.74 101,298,410.00 available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 6. Other Net after-tax of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 337,211,881.16 547,249,262.29 Total comprehensive income attributable to owners of parent 324,031,150.77 535,667,460.00 Company Total comprehensive income attributable to minority shareholders 13,180,730.39 11,581,802.29 VIII. Earnings per share: (i) Basic earnings per share 0.40 0.43 (ii) Diluted earnings per share 0.40 0.43 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin 4. Profit Statement of Parent Company In RMB Item Current Period Last Period I. Operating income 394,842,543.82 455,668,776.35 Less: Operating cost 326,989,913.53 348,947,949.43 Operating tax and extras 155,980.65 3,902.08 18 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Sales expenses 11,138,867.26 19,118,337.65 Administration expenses 64,823,744.99 47,588,440.38 Financial expenses -5,318,543.29 4,827,808.31 Losses of devaluation of asset -4,138.36 Add: Changing income of fair value(Loss is listed with “-”) Investment income (Loss is listed with “-”) 304,417,001.29 304,125,920.13 Including: Investment income on affiliated company and joint 225,690,260.36 228,325,045.44 venture II. Operating profit (Loss is listed with “-”) 301,473,720.33 339,308,258.63 Add: Non-operating income 11,504,457.16 182,725.97 Including: Disposal gains of non-current asset 461,816.10 176,775.49 Less: Non-operating expense 5,152,325.81 23,744,282.73 Including: Disposal loss of non-current asset 538,185.46 537,411.76 III. Total Profit (Loss is listed with “-”) 307,825,851.68 315,746,701.87 Less: Income tax expense 9,612,662.38 14,210,366.01 IV. Net profit (Net loss is listed with “-”) 298,213,189.30 301,536,335.86 V. Net after-tax of other comprehensive income -81,440,178.74 101,298,410.00 (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss 1. Changes as a result of re-measurement of net defined benefit plan liability or asset 2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss (II) Other comprehensive income items which will be reclassified -81,440,178.74 101,298,410.00 subsequently to profit or loss 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss 2. Gains or losses arising from changes in fair value of -81,440,178.74 101,298,410.00 available-for-sale financial assets 3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets 4. The effect hedging portion of gains or losses arising from cash flow hedging instruments 5. Translation differences arising on translation of foreign currency financial statements 19 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 6. Other VI. Total comprehensive income 216,773,010.56 402,834,745.86 VII. Earnings per share: (i) Basic earnings per share 0.30 0.30 (ii) Diluted earnings per share 0.30 0.30 5. Consolidated Cash Flow Statement In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 1,045,759,145.54 1,793,896,648.34 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 amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Write-back of tax received 8,008,632.87 5,861,072.63 Other cash received concerning operating activities 10,098,654.92 10,469,465.61 Subtotal of cash inflow arising from operating activities 1,063,866,433.33 1,810,227,186.58 Cash paid for purchasing commodities and receiving labor service 646,736,537.70 1,221,838,662.89 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 233,203,007.42 235,788,099.90 Taxes paid 73,384,118.46 88,860,754.96 Other cash paid concerning operating activities 67,711,009.14 55,352,567.09 20 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Subtotal of cash outflow arising from operating activities 1,021,034,672.72 1,601,840,084.84 Net cash flows arising from operating activities 42,831,760.61 208,387,101.74 II. Cash flows arising from investing activities: Cash received from recovering investment 2,205,000,000.00 738,488,400.00 Cash received from investment income 64,419,340.50 359,700,782.75 Net cash received from disposal of fixed, intangible and other 42,881,823.24 2,886,954.14 long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities 4,994,867.00 Subtotal of cash inflow from investing activities 2,317,296,030.74 1,101,076,136.89 Cash paid for purchasing fixed, intangible and other long-term assets 172,091,632.80 259,971,934.91 Cash paid for investment 4,164,900,000.00 1,694,670,000.00 Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities 4,417,030.41 22,979,036.58 Subtotal of cash outflow from investing activities 4,341,408,663.21 1,977,620,971.49 Net cash flows arising from investing activities -2,024,112,632.47 -876,544,834.60 III. Cash flows arising from financing activities Cash received from absorbing investment 8,419,964.00 Including: Cash received from absorbing minority shareholders’ 8,419,964.00 investment by subsidiaries Cash received from loans 20,000,000.00 140,000,000.00 Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing activities 20,000,000.00 148,419,964.00 Cash paid for settling debts 117,000,000.00 260,000,000.00 Cash paid for dividend and profit distributing or interest paying 2,994,639.99 2,754,980.79 Including: Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing activities 119,994,639.99 262,754,980.79 Net cash flows arising from financing activities -99,994,639.99 -114,335,016.79 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents -2,081,275,511.85 -782,492,749.65 21 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Add: Balance of cash and cash equivalents at the period -begin 3,040,315,198.85 2,028,227,816.93 VI. Balance of cash and cash equivalents at the period -end 959,039,687.00 1,245,735,067.28 6. Cash Flow Statement of Parent Company In RMB Item Current Period Last Period I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 293,136,068.15 511,334,943.56 Write-back of tax received Other cash received concerning operating activities 1,018,487,862.15 511,542,086.53 Subtotal of cash inflow arising from operating activities 1,311,623,930.30 1,022,877,030.09 Cash paid for purchasing commodities and receiving labor service 282,753,491.39 374,944,772.61 Cash paid to/for staff and workers 95,493,605.17 101,275,934.85 Taxes paid 2,009,050.02 1,324,016.22 Other cash paid concerning operating activities 17,029,393.28 24,263,876.80 Subtotal of cash outflow arising from operating activities 397,285,539.86 501,808,600.48 Net cash flows arising from operating activities 914,338,390.44 521,068,429.61 II. Cash flows arising from investing activities: Cash received from recovering investment 2,170,000,000.00 742,488,400.00 Cash received from investment income 64,419,340.50 347,810,652.75 Net cash received from disposal of fixed, intangible and other 42,399,744.56 2,531,242.23 long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 2,276,819,085.06 1,092,830,294.98 Cash paid for purchasing fixed, intangible and other long-term assets 114,644,737.91 199,306,912.90 Cash paid for investment 4,054,900,000.00 1,678,778,630.00 Net cash received from subsidiaries and other units Other cash paid concerning investing activities 4,417,030.41 22,979,036.58 Subtotal of cash outflow from investing activities 4,173,961,768.32 1,901,064,579.48 Net cash flows arising from investing activities -1,897,142,683.26 -808,234,284.50 III. Cash flows arising from financing activities Cash received from absorbing investment Cash received from loans 110,000,000.00 22 无锡威孚高科技集团股份有限公司 2016 年第一季度报告全文 Cash received from issuing bonds Other cash received concerning financing activities Subtotal of cash inflow from financing activities 110,000,000.00 Cash paid for settling debts 50,000,000.00 210,000,000.00 Cash paid for dividend and profit distributing or interest paying 2,160,055.28 1,031,111.12 Other cash paid concerning financing activities Subtotal of cash outflow from financing activities 52,160,055.28 211,031,111.12 Net cash flows arising from financing activities -52,160,055.28 -101,031,111.12 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate V. Net increase of cash and cash equivalents -1,034,964,348.10 -388,196,966.01 Add: Balance of cash and cash equivalents at the period -begin 1,734,531,427.66 1,159,462,935.71 VI. Balance of cash and cash equivalents at the period -end 699,567,079.56 771,265,969.70 II. Audit report Whether the 1st quarterly report has been audited or not □Yes √ No The 1st quarterly report of the Company was unaudited Board of Director of Weifu High-Technology Group Co., Ltd Chairman: ________ Chen Xuejun 28 April 2016 23