无锡威孚高科技集团股份有限公司
Weifu High-Technology Group Co., Ltd.
Semi-Annual Report 2020
August 2020
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Wang Xiaodong, Principal of the Company, Ou Jianbin, person in charger of
accounting works and Ou Jianbin, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2020
Semi-Annual Report is authentic, accurate and complete.
All directors are attend the Meeting for the Report deliberation.
In this report, details of relevant risks and countermeasures in operation have
described, found more in relevant content in the Report. Concerning the
forward-looking statements with future planning involved in the Report, they do
not constitute a substantial commitment for investors.
The China Securities Journal, Securities Times, Hong Kong Commercial Daily
and Juchao Website （www.cninfo.com.cn）are the information disclosure media
appointed by the Company, all information should be prevail on the above
mentioned media, investors are advice to pay attention on investment risks.
The Company has no plan of cash dividend distributed, no cash bonus and
capitalizing of common reserves either carried out.
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Contents
Section I Important Notice, Contents and Interpretation .............................................................. 2
Section II Company Profile and Main Financial Indexes ............................................................. 5
Section III Summary of Business .................................................................................................... 8
Section IV Discussion and Analysis of Operation ......................................................................... 11
Section V Important Events .......................................................................................................... 22
Section VI Changes in shares and particular about shareholders ............................................... 33
Section VII Preferred Stock……………………………………………………………………….38
Section VIII Corporate Bonds ........................................................................................................ 39
Section IX Particulars about Directors, Supervisors and Senior Executives…. ........................ 40
Section X Corporate Bonds ............................................................................................................. 43
Section XI Financial Report ............................................................................................................ 44
Section XII Documents Available for Reference ......................................................................... 194
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Interpretation
Items Refers to Contents
Company, The Company, WFHT Refers to Weifu High-Technology Group Co., Ltd.
Weifu Group Refers to Wuxi Weifu Group Co., Ltd.
Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Robert Bosch, Robert Bosch Company Refers to Robert Bosch Co., Ltd, ROBERT BOSCH GMBH
Bosch DS, Bosch Diesel System Refers to Bosch Automobile Diesel System Co., Ltd.
Weifu Leader Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
Weifu Jinning Refers to Nanjing Weifu Jinning Co., Ltd.
Weifu Environment Refers to Wuxi Weifu Environment Catalyst Co., Ltd.
Weifu Precision Machinery Refers to Weifu Precision Machinery Manufacturing Co., Ltd.
SPV Refers to Weifu Holding Aps
IRD Refers to IRD Fuel Cells A/S
Zhonglian Electronic Refers to Zhonglian Automobile Electronic Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
Reporting period Refers to 1 January 2020 to 30 June 2020
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock WFHT, Su Weifu-B Stock code 000581, 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in
威孚高科
Chinese if applicable)
Foreign name of the Company (if
WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
applicable)
Short form of foreign name of the
WFHT
Company (if applicable)
Legal representative Wang Xiaodong
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Weixing Yan Guohong
Contact add. No.5 Huashan Road, Xinwu District, Wuxi No.5 Huashan Road, Xinwu District, Wuxi
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2019.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2019.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Current period Same period of last year Changes over last year
Operating income (RMB) 6,594,403,624.56 4,403,444,346.05 49.76%
Net profit attributable to shareholders of
1,326,344,424.98 1,256,661,577.09 5.55%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 1,175,574,728.86 1,114,094,824.74 5.52%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
437,657,072.41 690,323,908.25 -36.60%
activities (RMB)
Basic earnings per share (RMB/Share) 1.32 1.25 5.60%
Diluted earnings per share (RMB/Share) 1.32 1.25 5.60%
Weighted average ROE 7.80% 7.60% 0.20%
Changes over period-end of
Period-end Period-end of last year
last year
Total assets (RMB) 24,755,340,246.43 23,958,348,185.78 3.33%
Net assets attributable to shareholder of
16,922,892,215.78 16,990,405,136.62 -0.40%
listed company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that accrued
-543,370.99
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 43,932,417.68
enterprise’s business)
Profit and loss of assets delegation on others’ investment or management 138,448,908.25
Gains/losses of fair value changes from holding the transaction financial asset, derivative
financial assets, transaction financial liability and derivative financial liability and
investment earnings obtained from disposing the transaction financial asset, derivative
258,157.65
financial assets, transaction financial liability, derivative financial liability and other debt
investment, except for the effective hedging business related to normal operation of the
Company
Other non-operating income and expenditure except for the aforementioned items -2,840,670.20
Less: Impact on income tax 26,779,577.16
Impact on minority shareholders’ equity (post-tax) 1,706,169.11
Total 150,769,696.12 --
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
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section III Summary of Business
I. Main businesses of the company in the reporting period
1. The Company belongs to automobile components industry, and its main products include diesel fuel
management system products, exhaust after-treatment system products and air management system products.
2. Main uses of the Company's products
(1) The diesel fuel management system products:they widely used in different power diesel engines supporting all
types of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only
makes products matching with the main engines used at home but also exports some products to the Americas,
Southeast Asia, and the Middle East. The products meet the needs of national emission standards.
(2) The auto exhaust after-treatment system products: mainly support the major manufacturers of automobile,
motorcycle and general machinery at home which meet the national emission standards.
(3) The Air management system products (supercharger): matches with most of the domestic small-bore diesel
engine plants and some 6-cyl diesel engine manufacturers, and meet the needs of the light and heavy commercial
vehicles and some passenger cars, and meets the national emission standards.
3. Business model of the Company
The Company follows the operating philosophy of making competitive products, creating famous brands, striving
for first choices, and creating value for the users, implements the business model that parent company unifies the
management and subsidiaries decentralize the production. Namely, the group company is responsible for making
strategic development planning and operation targets, and making the unified management, instruction and
assessment for the finance, significant personnel management, core raw materials, quality control, and technology
of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which
makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the Company’s main business and business model have no significant changes.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets The joint venture distributed dividend in reporting period
Fixed assets No major change
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Intangible assets No major change
Construction in progress No major change
2. Main overseas assets
√Applicable □ Not applicable
The Whether
Control
Inco proportion there are
measures to
Specific content of Operation me of overseas significan
Cause of formation Asset size Location guarantee
the asset model statu assets to the t risks of
asset
s company’s impairme
security
net assets nt(Y/N)
In April 2019, the In order to accelerate the The The
Company cultivation of the company Company
established SPV (a company's new business invested will pay full
wholly-owned growth point and 7.26 attention to
subsidiary) in accelerate the million changes in
Denmark. And to transformation and and gained the industry
acquire 66% equity upgrading of the company, control of and the
th
of the Danish IRD on 26 March 2019, the 4 IRD Fuel Controlling market, give
th
Denmark N/A 1.07% N
Fuel Cells A/S session of the 9 Board of Cells A/S. subsidiary play to its
(hereinafter referred Directors reviewed and own
to as “IRD”) with approved the “Proposal on advantages,
7.26 million euros the Company's Foreign and actively
Investment” prevent and
resolve
various
risks.
III. Core Competitiveness Analysis
The Company is a high technology enterprise with a number of patented technologies. For years, based on the
scientific research as National Enterprise Technical Center, Post-doctor Scientific Research Station, Jiangsu
Provincial Engineering and Technology Research Center and Industrialization Base of National Hi-Tech Research
and Development Achievement, we have became the backbone enterprise of the core parts of domestic
automobile (power engineering) after more than 60 years of cultivation, 80 percent of the current core business of
auto parts are matching with electronic control system and with electronic control realized, which owes a leading
position in self-owned brand.
The company lays emphasis on the manufacturing quality management, relies on WPS (Weifu production system)
and manufacturing information platform with Weifu characteristics to continuously improve the production
system structure, personnel organization, operation mode and market supply and demand relationship, and
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
continues to carry out the process quality indicator quantitative management and process management, and
improve production efficiency, product quality and product delivery capabilities, and the company’s
manufacturing quality control capabilities are further improved.
The company pays attention to the business operation quality of and lays emphasis on the resource integration. At
present, the company has established a high-speed, stable and reliable network environment and an efficient data
center, successfully built the ERP platform, opened up the value chain, and realized the integration of financial
services, which made the information resources fully shared, and the company’s comprehensive operational
management level has been further improved.
The company pays attention to the construction of core talent system. At present, it has built a relatively complete
human resource management platform to strive to build a high-quality core talent team, which provides a strong
human resource guarantee for the long-term development of the company.
Core competitiveness of the Company has no major changes in the Period.
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section IV Discussion and Analysis of the Operation
I. Introduction
(1) Overall situation
This year, affected by the novel coronavirus pneumonia epidemic, the company and the industry are facing huge
challenges. At the beginning of the epidemic, the government issued a series of policies to control the spread of
the epidemic, which forced companies to suspend work and production, and the poor social logistics system
seriously affected the supply of raw materials and components and the products sales of the company. In response
to the above-mentioned difficulties and challenges, the company has taken corresponding measures to respond
actively,when the local epidemic was initially controlled, it speeded up the resumption of work and production,
and ensured to neglect neither prevention and control of the epidemic nor production and operation.From the
formal resumption of work on February 10 to the end of February, the company's resumption rate reached 80%,
which basically met the needs of production. After the epidemic was basically controlled, the state issued a series
of policies to stimulate economic recovery, which strongly promoted the recovery of the industry. In the face of
positive policy signals, the company seized the opportunity to quickly organize the purchase of imported raw
materials and important parts required by the company, ensuring the company’s production and operation needs in
the second quarter and enabling the company to effectively resist the negative impact of the epidemic. Compared
with the same period last year, the company's various economic indicators maintained good growth. During the
reporting period, the company achieved operating income of 6.594 billion yuan, an increase of 49.76% over the
same period last year; realized profits of 1.404 billion yuan, an increase of 3.49% over the same period last year;
realized net profit attributable to owners of the parent company of 1.326 billion yuan, an increase of 5.55%over
the same period last year.
(2) Main work carried out in the first half of the year
1. Actively responded to challenges, seized market opportunities, and ensured sales growth. The epidemic at the
beginning of the year brought severe challenges to the industry and the company. The company adjusted its
response strategies in a timely manner, actively promoted the implementation progress of key projects in key
customers, increased the market shares of the three major business segments, and ensured the sales growth of the
three major business products, and realized significant growth in operating income for the first half of the year.
2. Intensified technological research and development and promoted the development of new products. Gasoline
supercharger products have gradually realized mass production in major customer projects; exhaust gas
after-treatment system products have completed the encapsulation development of CN-VI GPF catalyst products
for core customers on passenger cars, and achieved mass supply, and the development of WSP2.0 encapsulation
platform have been in progress on commercial vehicles, all phases of tests were completed on schedule; the design,
trial production and testing of functional samples of core components for new energy products were completed ,
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
and we mastered the basic research and development capabilities.
3. Consolidated lean production and built an information-based manufacturing system. Actively improved the
construction and in-depth application of Weifu's intelligent manufacturing platform, and promoted the large-scale
application of cloud computing and 5G. Currently, uploading the application to the cloud is in the implementation
process. The construction plan design of 5G factory has been completed, the construction of Aris process
management platform has been completed, and the unified process modeling has been established, integrating
various management elements to form an integrated and visual process management model.
4. Improved cost control capabilities, standardized and unified cost center setting rules, and clarified cost
responsibility subjects and authorization approval mechanisms. Built an asset management system, optimized
asset quality, optimized financial structure, reduced working capital, optimized credit management system,
combined credit and customer ratings, and controlled bad debts from the source; deepened the construction of
PSSC sharing platform: the optimization plans for all special subjects of indirect material business PSSC system
were completed, the first phase of the company’s full coverage of the direct material business PSSC system has
been completed and launched. Reorganized the entire procurement process, and initially established a process map
of the entire procurement process. Established the bottom line of strict compliance, integrated risk management
into process construction, and gradually realized the risk management concept of integrating risk control
compliance elements into the process system by identifying key risk control points in the process and integrating
the management process and management risk.
5. Improved the strategic planning system and actively deployed new businesses. Focusing on the company's
strategic planning system, implemented strategic planning management functions, established strategic planning
and investment specialized committees, strategic planning work organizations and expert database organizations,
basically established the company's medium and long-term strategic development master plan, and decomposed,
implemented, tracked and evaluated the strategic planning. Promoted the implementation of new business plans,
initially formulated product plans for hydrogen fuel cells, conducted market research on key customers, and
promoted IRD capacity planning.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Operation”
Change of main financial data on a y-o-y basis
In RMB
Current period Same period of last year y-o-y changes (+,-) Reasons
Sales of the after-treatment
Operation income 6,594,403,624.56 4,403,444,346.05 49.76%
products growth
Operation cost 5,413,969,374.53 3,405,386,504.44 58.98% Sales of the after-treatment
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
products growth
Sales of the after-treatment
Sales expenses 138,394,171.31 104,270,647.40 32.73%
products growth
Administrative expenses 336,984,661.28 310,909,980.43 8.39%
Financial cost -34,606,959.25 -29,492,795.58 17.34%
Income tax expense 57,505,452.12 81,382,654.54 -29.34%
R&D investment 211,531,953.72 180,167,642.16 17.41%
Net cash flow arising
437,657,072.41 690,323,908.25 -36.60%
from operation activities
Net cash flow arising The joint venture distributed
1,445,525,014.63 314,744,349.46 359.27%
from investment activities dividend
Net cash flow arising
-1,000,189,530.78 -813,830,454.63 22.90% The borrowings declined
from financing activities
Net increase of cash and
887,655,835.02 191,652,992.77 363.16%
cash equivalent
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of operation revenue
In RMB
Current period Same period of lat year
Ratio in Ratio in Increase/decrea
Amount operation Amount operation se y-o-y(+,-)
revenue revenue
Total operation revenue 6,594,403,624.56 100% 4,403,444,346.05 100% 49.76%
According to industries
Automobile components 6,352,974,489.95 96.34% 4,133,178,892.36 93.86% 53.71%
Other business 241,429,134.61 3.66% 270,265,453.69 6.14% -10.67%
According to products
Automobile fuel management
2,698,345,643.33 40.92% 2,538,597,772.47 57.65% 6.29%
system
Automobile after-treatment system 3,298,709,150.58 50.02% 1,354,791,563.22 30.77% 143.48%
Air management system 355,919,696.04 5.40% 239,789,556.67 5.44% 48.43%
Other business 241,429,134.61 3.66% 270,265,453.69 6.14% -10.67%
According to region
Domestic sales 6,479,404,165.51 98.26% 4,237,239,553.83 96.23% 52.92%
Foreign sales 114,999,459.05 1.74% 166,204,792.22 3.77% -30.81%
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Operating revenue Operating cost of operating of operating cost of gross profit
ratio
revenue y-o-y y-o-y ratio y-o-y
According to industries
Automobile
6,352,974,489.95 5,256,052,615.30 17.27% 53.71% 65.31% -5.80%
components
According to products
Automobile fuel
2,698,345,643.33 1,969,941,183.98 27.00% 6.29% 9.05% -1.85%
management system
Automobile
3,298,709,150.58 3,035,602,808.52 7.98% 143.48% 154.47% -3.97%
after-treatment system
Air management
355,919,696.04 250,508,622.80 29.62% 48.43% 39.06% 4.75%
system
According to region
Domestic sales 6,237,975,030.90 5,144,592,565.68 17.53% 57.25% 70.14% -6.25%
Foreign sales 114,999,459.05 111,460,049.62 3.08% -30.81% -28.46% -3.18%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
Operating revenue has major growth mainly because sales of after-treatment system products growth and the price of main raw
materials (precious metal) soaring.
III. Analysis of non-main business
√Applicable □Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable (Y/N)
Income mainly from the Y (The Company’s joint ventures Bosch
two joint ventures the DS and Zhonglian Electronics’ joint
Investment income 923,574,526.61 65.79% Company (Bosch DS venture- Lianhe Electronic have stable
and Zhonglian production and operation both on a
Electronic) sustained basis)
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Gain/loss of fair
258,157.65 0.02%
value changes
Asset impairment -52,807,909.47 -3.76%
Non-operating
164,150.94 0.01%
income
Non-operating
4,124,451.68 0.29%
expense
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end of last year
Ratio in Ratio
Ratio in Notes of major changes
Amount total Amount changes(+,-)
total assets
assets
Monetary fund 2,564,147,609.58 10.36% 2,689,698,577.33 12.04% -1.68%
Sales revenue increased during
Account
3,674,151,635.33 14.84% 2,319,307,654.58 10.38% 4.46% the reporting period, and the
receivable
short-term receivable increased
Inventory 1,670,738,746.77 6.75% 1,427,136,271.99 6.39% 0.36%
Investment
21,648,596.74 0.09% 21,131,775.19 0.09%
property
Long-term equity The joint venture distributed
3,977,690,136.49 16.07% 4,792,747,311.47 21.46% -5.39%
investment dividend in reporting period
Fix assets 2,875,000,573.89 11.61% 2,680,884,221.89 12.00% -0.39%
Construction in
253,735,407.77 1.02% 259,557,105.61 1.16% -0.14%
progress
Short-term loans 328,308,738.00 1.33% 321,055,399.28 1.44% -0.11%
Long-term loans 20,000,000.00 0.08% 22,500,000.00 0.10% -0.02%
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Deval
Changes of Accumu uation Amo
lative Amount of unt
Amount at the fair value of Other Amount at
Items changes withdr purchase in the of
beginning period gains/losses in changes(+,-) period-end
of fair awing period sale
this period
value in the in
15
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
reckone period the
d into perio
equity d
Financial assets
1.Transaction
financial
asset(excluding 4,984,475,661.75 258,157.65 2,863,000,000.00 2,938,128,352.00 4,909,605,467.13
derivative
financial assets)
4.Other equity
instrument 285,048,000.00 285,048,000.00
investment
Subtotal of
5,269,523,661.75 258,157.65 2,863,000,000.00 2,938,128,352.27 5,194,653,467.13
financial assets
Above total 5,269,523,661.75 258,157.65 2,863,000,000.00 2,938,128,352.27 5,194,653,467.13
Financial
0.00 0.00
liabilities
Other changes
The purchased financial products are due for redemption
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
In RMB
Item Book value at Restriction reason
period-end
Monetary funds 32,786,262.96 Cash deposit paid for bank acceptance
Monetary funds 50,000,000.00 Amount of shares buy-back
Monetary funds 2,206,857.75 Court freeze
Note receivable 645,547,079.23 Notes pledge for bank acceptance
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of
Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as Shenzhen
Intermediate People's Court), the property with the value of 217 million Yuan under the name
Transaction
117,947,240.94 of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye
financial asset
Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) was frozen. As of the end of
the reporting period, 4.71 million shares of Miracle Automation& fruits and 11,739,102
shares of SDEC& fruits held by the Company were frozen.
Total 848,487,440.88 --
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4.Financial assets measured by fair value
√Applicable □Not applicable
In RMB
Gains/loss of Cumulative
Amount Cumulative
Initial investment fair value changes in fair Amount sales in Amount at Capital
Assets type purchased in the investment
cost changes in value included the period period-end source
period income
the period in equity
Stock 268,539,500.00 -1,204,560.00 -17,721,963.00 195,540,676.46 126,649,272.00
Fund 551,446,703.43 310,000,000.00 451,446,703.43 30,503,678.76 410,000,000.00
Bond 320,000,000.00 330,000,000.00 290,000,000.00 9,048,533.38 360,000,000.00
Trust
1,588,800,000.00 1,147,000,000.00 280,000,000.00 63,815,284.19 2,455,800,000.00
products Own
Other 2,334,800,000.00 1,462,717.65 19,694,559.97 1,076,000,000.00 1,916,681,648.84 35,081,411.92 1,513,812,911.13 fund
Other
non-current
43,343,284.00 43,343,284.00
financial
assets
Other equity
instrument 285,048,000.00 285,048,000.00
investment
Total 5,391,977,487.43 258,157.65 1,972,596.97 2,863,000,000.00 2,938,128,352.27 333,989,584.71 5,194,653,467.13 --
5. Financial assets investment
(1) Securities investment
√Applicable □Not applicable
In RMB
17
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Book Curre
Account Current Curr
Variety Cod Short value at Cumulative nt Profit and Book
Initial ing gain/loss ent
of e of form of the fair value purch loss in the value at Accounting Capital
investmen measure of fair sales
securitie secu securiti beginning changes in ase Reporting the end of subject Source
t cost ment value amo
s rities es of the equity amou Period the period
model changes unt
period nt
600 199,208,0 91,822,33 -1,298,76 -18,734,6 -1,298,760 90,523,57
Domesti SDEC
841 00.00 Measure 2.00 0.00 13.00 .00 2.00 Transaction
c and Own
d by fair financial
foreign Miracle funds
002 69,331,50 value 36,031,50 36,125,70 asset
stocks Autom 94,200.00 1012650.00 94,200.00
009 0.00 0.00 0.00
ation
268,539,5 127,853,8 -1,204,56 -17,721,9 -1,204,560 126,649,2
Total -- 0.00 0.00 -- --
00.00 32.00 0.00 63.00 .00 72.00
Disclosure date of 24 March 2012
securities investment
approval of the Board 4 June 2013
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VI. Significant asset and equity sales
1. Significant asset sales
□ Applicable √ Not applicable
No significant assets being sold in the Period
2. Significant equity sales
□ Applicable √ Not applicable
VII. Analysis of the main equity participation and controlling subsidiary
√ Applicable □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
In RMB
18
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Company Main Register
Type Total assets Net assets Operating revenue Operating profit Net profit
name business capital
After-treat
Weifu ment 502,596,3
Subsidiary 5,304,674,681.53 1,751,815,573.48 3,307,136,098.12 77,630,187.87 89,024,252.11
Leader system 00.00
products
Fuel
Weifu manageme 346,286,8
Subsidiary 1,432,851,061.86 960,422,691.54 352,597,870.12 73,854,249.53 71,027,425.74
Jinning nt system 25.80
products
Equity Fuel
participati manageme USD241,0
Bosch DS 13,204,305,600.74 5,790,299,088.97 7,807,711,867.16 1,972,088,160.35 1,764,998,863.92
on nt system 00,000.00
enterprise products
Equity
Gasoline
Zhonglian participati 600,620,0
system 6,608,373,464.46 5,276,368,547.57 11,705,308.41 636,372,293.00 634,241,700.83
Electronic on 00.00
products
enterprise
Subsidiary obtained and disposed in the Period
□Applicable √Not applicable
Explanation on holding equity participation enterprise
Operating revenue from Weifu Leader has major growth mainly because sales of after-treatment system products growth and the
price of main raw materials (precious metal) soaring.
VIII. The structured subject controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2020
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
X. Risks and countermeasures
(1) Macro economy and market risks
Affected by the novel coronavirus epidemic, the macro economy and market environment are still complicated
and severe, and the industry will still face greater pressure. If industry demand declines, it will have a certain
impact on the company's production and operation and profitability.
19
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Countermeasures: The company will always pay attention to macroeconomic and industry development trends,
consolidate its current business market position, actively expand new businesses, and strive to improve the
company's core competitiveness and overall risk resistance.
(2) Operating management and control risks
As the company’s business scope continues to expand, especially in the new energy field, the management span is
rather large and there are potential operating management and investment risks.The external environment was
affected by the epidemic, the varying affected degree of customers and sales declines, restrictions on logistics and
transportation areas, delayed payment by some customers, and increased pressure on fund quality and repayment
has brought certain risks to the company’s business.
Countermeasures: the company will continue to promote the optimization and improvement of internal
management, perfect the procedures, further manage standardization and control the management risks; focus on
the impact of market dynamics on the Company; continue to develop strategy customers, and gradually strengthen
the new business market connection and new new products promotion.
(3) The risks of fluctuations in raw material prices
The company's main raw materials include various grades of steel, aluminum, precious metals, etc., the continuous
rise in prices will bring the risks of rising costs to the company.
Countermeasures: the company will pay close attention to the price trend of major raw materials, choose
appropriate procurement opportunities, and make reasonable strategic reserves to resolve the risk of raw material
price fluctuations.
(4) Risks associated with financial instruments
The company's main financial instruments include monetary funds, structured deposits, receivables, equity
instrument investments, wealth management products, loans, payable, etc. In the operation process, the risks
related to financial instruments faced by the company mainly include credit risk, market risk and liquidity risk.
Countermeasures: confirm and analyze the various risks faced by the Company, establish an appropriate risk
tolerance bottom line and carry out risk management, and timely and reliably monitor various risks to ensure that
the risks are controlled within a limited range and the negative impact of the risks on the company’s operating
performance is reduced to the minimum level to maximize the interests of shareholders and other investors.
20
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Participation ratio
Meeting Type Holding date Disclosure date Index
for investors
Notice No.: 2020-026 released
Annual General
AGM 48.39% 2020-05-28 2020-05-29 on Juchao Website
Meeting of 2019
(www.cninfo.com.cn)
2020 First Extraordinary Extraordinary Notice No.: 2020-036 released
General Meeting of general 44.80% 2020-06-18 2020-06-19 on Juchao Website
Shareholders meeting (www.cninfo.com.cn)
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
III. Commitments that actual controller, shareholder, related parties, buyer and committed
party as the Company etc. have fulfilled during the reporting period and have not yet fulfilled
by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the actual controller, shareholder, related parties, buyer and committed party as the Company etc.
have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
21
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reporting
Other lawsuits
√Applicable □ Not applicable
Amount
Whether Trial Results Judgment
Related
Basic Situation of Formed Progress of Litigation and Effects of Implementatio Disclosu Disclosure
to the
Litigation (Arbitration) Accrued (Arbitration) Litigation n of Litigation re Date Index
Case (10
Liabilitie (Arbitration) (Arbitration)
thousan
s
d Yuan)
On March 6, 2017, the By the Company’s application
company received the for reconsideration, Shenzhen
civil ruling Intermediate People's Court
No.(2016)Y03MC2490 deemed the total assets that This litigation
(Announceme
and No.(2016) Cinda Company applied for will not affect
nt No.:
Y03MC2492 from preservation to be RMB the company’s Not yet 2017-03 2017-002)
Shenzhen Intermediate 21,703 N 217,027,697.23. The total daily implemented -08 published on
People's Court about the value of 15.3 million shares of operating
www.cninfo.c
dispute case that the SDEC Stock and 4.71 million activities for
om.cn
plaintiff applicant China shares of Miracle Automation the time being
Cinda Asset held by the Company has
Management Co., Ltd. exceeded the total assets that
Shenzhen Branch Cinda Company applied for
22
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(hereinafter referred to preservation, therefore,
as “Cinda Company”) 3,560,898 shares of SDEC
appealed the respondent Stock held by the Company
Weifu High Technology was unfrozen. Up to the end
and other seven of the reporting period, the
respondents and the Company’s frozen assets were
shareholders of the third as follows: 4.71 million shares
party Hejun Company of Miracles Logistics held by
damaged the interests of the Company and its fruits,
corporate creditors, and 11,739,102 shares of
which adopted the SDEC Stock held by the
mandatory measures to company and its fruits. At
freeze the assets with present, this litigation is in the
value of RMB 217 first instance (First trail on 24
million under the name September 2017 and
of the Company and follow-up session will held
other seven respondents until further notice)
and Hejun Company.
Freeze 4.71 million
shares of Miracle
Automation and 15.3
million shares of SDEC
Stock held by the
company.
The Company has applied to
the Futian Court for
compulsory liquidation of
Hejun Company. Futian Court
has made a civil ruling This event
((2017) Yue 0304 QS No. 5) will not affect (Announceme
The Company applied to
which ruled to execute the Relevant nt No.:
the Futian Court for 2017-12
3,300 N compulsory liquidation to Company’s works still in 2017-023)
compulsory liquidation -06
Hejun Company. The daily process published on
of Hejun Company.
Company will actively operating www.cninfo.c
cooperate with the court to do activities om.cn
the relevant liquidation work
and safeguard the legitimate
rights and interests of the
Company.
IX. Media questioning
□Applicable √Not applicable
During the reporting period, the company had no media generally questioned matters.
23
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
X. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XI. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XII. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
√ Applicable □ Not applicable
On 20 June 2014, the Company held the 2013 AGM which deliberated "the Company’s incentive fund
implementation methods",during the reporting period, the company fully implemented and completed the
mid-to-long-term special incentive distribution of core talents so as to mobilize the enthusiasm and creativity of
employees to the greatest extent, stabilize the employees, attract high-quality talents, and enhance the cohesion
force in enterprise.
XIII. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Wheth
Trading er over Avail
Cleari
Type Conte Relate Related Proporti limit the ng able Date Index
of nt of d transaction on in approve approv form simila of of
Related Pricing
Relationship related related transac amount (in similar for
party principle d (in 10 ed related r disclo disclos
transac transac tion 10 thousand transacti
tion tion price Yuan) ons (%) thousand limited transac marke sure ure
tion
Yuan) or not t price
(Y/N)
Based
Weifu Based
on fair
Precisio Purcha on the Mark Notice
Associated value of Marke 2020-
n se Goods 1,483.36 0.23% 3,000 N contra et No.:20
company the t price 04-21
Machine goods ct price 20-014
market
ry terms
price
Associated Based Based
Bosch Purcha Mark Notice
company, on fair Marke on the 2020-
Diesel se Goods 1,226.18 0.19% 2,500 N et No.:20
Controlling value of t price contra 04-21
System goods price 20-014
subsidiary of the ct
24
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
German Bosch market terms
Company price
Based
Based
on fair
Weifu Purcha on the Mark Notice
Joint venture of value of Marke 2020-
Environ se Goods 182,473.63 27.87% 320,000 N contra et No.:20
Weifu Leader the t price 04-21
ment goods ct price 20-014
market
terms
price
Based
Based
Robert on fair
Second largest Purcha on the Mark Notice
Bosch value of Marke 2020-
shareholder of se Goods 6,366.98 0.97% 15,300 N contra et No.:20
Compan the t price 04-21
the Company goods ct price 20-014
y market
terms
price
Based
Xingwei Based
on fair
Automot Purcha on the Mark Notice
Associated value of Marke 2020-
ive se Goods 88.19 0.01% 500 N contra et No.:20
company the t price 04-21
Technol goods ct price 20-014
market
ogy terms
price
Based
Weifu Based
on fair
Precisio Goods on the Mark Notice
Associated Sales value of Marke 2020-
n and 77.41 0.01% 200 N contra et No.:20
company Goods the t price 04-21
Machine labors ct price 20-014
market
ry terms
price
Associated Based
Based
company, on fair
Bosch Goods on the Mark Notice
Controlling Sales value of Marke 2020-
Diesel and 155,123.36 23.52% 250,000 N contra et No.:20
subsidiary of Goods the t price 04-21
System labors ct price 20-014
German Bosch market
terms
Company price
Based
Based
on fair
Weifu Goods on the Mark Notice
Joint venture of Sales value of Marke 2020-
Environ and 974.96 0.15% 3,000 N contra et No.:20
Weifu Leader Goods the t price 04-21
ment labors ct price 20-014
market
terms
price
Robert Based Based
Second largest Mark Notice
Bosch Sales on fair Marke on the 2020-
shareholder of Goods 27,634.81 4.19% 76,000 N et No.:20
Compan Goods value of t price contra 04-21
the Company price 20-014
y the ct
25
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
market terms
price
Based
Xingwei Based
on fair
Automot on the Mark Notice
Associated Sales value of Marke 2020-
ive Goods 6.76 0.00% 200 N contra et No.:20
company Goods the t price 04-21
Technol ct price 20-014
market
ogy terms
price
Associated Techni Based
Based
company, cal on fair
Bosch on the Mark Notice
Controlling service value of Marke 2020-
Diesel Other 29.54 50 N contra et No.:20
subsidiary of fees the t price 04-21
System ct price 20-014
German Bosch payabl market
terms
Company e price
Associated Based
Trade Based
company, on fair
Bosch mark on the Mark Notice
Controlling value of Marke 2020-
Diesel Other using 100 N contra et No.:20
subsidiary of the t price 04-21
System expens ct price 20-014
German Bosch market
e terms
Company price
Payme
nt of Based
Based
Robert techni on fair
Second largest on the Mark Notice
Bosch cal value of Marke 2020-
shareholder of Other 14.06 550 N contra et No.:20
Compan commi the t price 04-21
the Company ct price 20-014
y ssion market
terms
fees, price
etc.
Based
Based
on fair
Weifu on the Mark Notice
Joint venture of Rental value of Marke 2020-
Environ Other 125.4 300 N contra et No.:20
Weifu Leader fees the t price 04-21
ment ct price 20-014
market
terms
price
Associated Based
Procur Based
company, on fair
Bosch ement on the Mark
Controlling value of Marke
Diesel Other of 16.27 Y contra et
subsidiary of the t price
System fixed ct price
German Bosch market
assets terms
Company price
Robert Second largest Sales Based Marke Based Mark
Other 319.39 Y
Bosch shareholder of of on fair t price on the et
26
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Compan the Company fixed value of contra price
y assets the ct
market terms
price
Based
Weifu Based
Sales on fair
Precisio on the Mark
Associated of value of Marke
n Other 5 Y contra et
company fixed the t price
Machine ct price
assets market
ry terms
price
Based
Based
Sales on fair
Weifu on the Mark
Joint venture of of value of Marke
Environ Other 903.63 Y contra et
Weifu Leader fixed the t price
ment ct price
assets market
terms
price
Based
Based
Payme on fair
Wuxi The company's on the Mark
nt of value of Marke
Industry largest Other 0.53 Y contra et
interes the t price
Group shareholder ct price
t market
terms
price
Total -- -- 376,869.46 -- 671,700 -- -- -- -- --
Detail of sales return with major amount
Not applicable
involved
After deliberated and approved by AGM of 2019, it is estimated that the routine related
transaction for year of 2020 amounting to 6,717 million Yuan, actually 3,768,694,600
Yuan in total occurred in reporting period, including:
Report the actual implementation of the
1. It is estimated that purchasing goods and labors from related parties amounted as
normal related transactions which were
3,413 million Yuan at most for year of 2020, actually 1,916,383,400 Yuan occurred in
projected about their total amount by
reporting period; 2. It is estimated that sales of goods and labors to related parties
types during the reporting period (if
amounted as 3,294 million Yuan at most for year of 2020, actually 1,838,173,000 Yuan
applicable)
occurred in reporting period；3. It is estimated that other related transactions with related
parties amounted as 10 million Yuan at most for year of 2020, actually 14.1382 million
Yuan occurred in reporting period;
Reasons for major differences between
trading price and market reference price Not applicable
(if applicable)
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
27
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other related transactions
√ Applicable □ Not applicable
The company held the 7th session of 9th board of directors on May 29, 2019, which deliberated and approved the
"Proposal on Joint Investment and Establishment of Companies and Related Transactions Between the Company
and Related Parties", the company and the major shareholder Industry Group, Wuxi Taiji Industry Co., Ltd.,
Chuxin Semiconductor Technology Co., Ltd., and Wuxi Spark Microelectronics Partnership (Limited Partnership)
jointly invested in the establishment of Wuxi Xichan Microchip Semiconductor Co., Ltd. The company has a
registered capital of 2,110 million yuan. The main business includes design, development and sales of
semiconductor device and integrated circuit; research and development of electronic components; sales of
mechanical equipment, computer software and hardware and external equipment; computer software development;
technology development, technical consultation, technology service, and technology transfer in the field of
semiconductor; import and export business of self-operated and agency goods and technology (except for goods
and technologies that are restricted by the state or prohibited from import and export). For details, please refer to
the company’s publication on China Securities Journal, Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn on June 5 and June 13, 2019. Related announcements (Announcement No.: 2019-018,
2019-019).
XIV. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
28
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
2. Major guarantees
□ Applicable √ Not applicable
No major guarantees for the Company in Period.
3. Trust financing
√ Applicable □ Not applicable
In 10 thousand Yuan
Specific type Sources of funds Amount occurred Undue balance Overdue amount
Bank financing products Own funds 229,483 151,381.29 0
Financial products of securities firms Own funds 36,000 36,000 0
Trust financial products Own funds 245,580 245,580 0
Other type Own funds 59,145 41,000 0
Total 570,208 473,961.29 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
√ Applicable □ Not applicable
In 10 thousand Yuan
Amo
unt Whe Sum
Whe
of ther mary
ther
reser has of the
Crit Actual appr
Capita ve entr items
Sou eria Referen collect oved
Trustee l Actual for ust and
rce for ce Anticipat ed by
institut Truste Amoun Start End invest gains/loss deva fina relate
Type of fixi annual ed gains/l legal
ion r e type t date date ment es in luati nce d
fun ng rate of income osses proc
name purpos period on plan query
ds rew return in edur
e of in index
ard period e
with the (if
(Y/
draw futur applic
N)
ing e able)
(if
29
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
appli
cabl
e)
Collec
Non-gu
ted
arantee Ow Financ
accord
d ned 2020-0 2021-0 ial 3.62%
Bank Bank 107,600 2,387.96 3,508.14 ing to 0 Y Y
floatin fun 1-09 6-25 produ -4.25%
the
g d cts
contra
income
ct
Collec
Non-gu Collec Ref
ted
arantee Ow tive eren
Securit Securi accord
d ned 2020-0 2021-0 assets ce 4.2%
ies ties 33,000 1,030.41 904.85 ing to 0 Y Y
floatin fun 2-18 7-01 manag ann -6%
trader trader the
g d ement ual
contra Notic
income plan rate
ct e No.:
of
Collec 2020-
Non-gu retu
ted 015
arantee Ow Collec rn
accord
d ned 2020-0 2022-0 tion by 5.1%
Trust Trust 114,700 15,324.6 6,381.53 ing to 0 Y Y
floatin fun 2-14 6-30 trust the -8.4%
the
g d plan cont
contra
income ract
ct
Collec
Non-gu
Fixed ted
arantee Ow
Other Other incom accord
d ned 2020-0 2021-1 6%
(Fund (Fund 31,000 e fund 2,534.76 3,050.37 ing to 0 Y Y
floatin fun 1-10 2-16 -8.75%
etc.) etc.) produ the
g d
cts contra
income
ct
Total 286,300 -- -- -- -- -- -- 21,277.73 13,844.89 -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
30
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
XV. Social responsibility
1. Major environmental issues
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
No
Protecting the environment is the corporate mission of WFHT. The company’s main business is expanded around
the energy saving and emission reduction of automobiles. At present, the company’s main products have all met
the emission regulations required by the state, and the company is actively preparing products that can meet the
requirements of more stringent emission regulations. Saving resources and reducing consumption are part of the
core value of Weifu High Technology. On the one hand, it is conducive to the improvement of enterprise
efficiency, and at the same time, it is conducive to improving the resource utilization rate of the whole society.
Therefore, the company will continue to improve the resource utilization through technological innovation.
Vigorously promote energy conservation and emission reduction, and strive to achieve green production. In the
process of production and operation, the company strictly abides by relevant national and local environmental
protection laws, regulations and rules, and obtains, updates and communicates relevant environmental protection
laws, regulations and standards in a timely manner, and conducts internal daily environmental management on the
basis of new regulations and standards, actively fulfills the environmental protection obligations,and implements
the national energy conservation and emission reduction policies.The company resolutely implements the “three
simultaneous” system of construction projects and strictly performs the procedures for environmental impact
assessment, approval, and acceptance of construction projects. In the process of new project and technical
transformation, the new and old pollution can be solved together according to the principle of technical feasibility
and economic rationality, the environmental protection facilities are designed, constructed and put into use at the
same time as the main project of the construction project.
2. Precise poverty alleviation social responsibility
There is no precise poverty alleviation carried out in the period and no follow plan either
XVII. Explanation on other significant events
The company held the eleventh meeting of the ninth board of directors on February 13, 2020, which deliberated
and approved the "Proposal on Repurchasing Part of the Company's A Shares by Centralized Bidding". On
February 21, 2020, it disclosed the "Repurchase Report on Repurchasing Part of the Company's A Shares by
Centralized Bidding Transactions" (Announcement No.: 2020-005) on China Securities Journal, Securities Times,
Hong Kong Commercial Daily and www.cninfo.com.cn. On February 28, 2020, the company disclosed the
"Announcement on the Initial Repurchase of the Company Shares" (Announcement No.: 2020-006), and it
disclosed the “Announcement on the Progress of Repurchasing Part of A Shares” (Announcement Nos.: 2020-007,
2020-008, 2020-009, 2020-022, 2020-033) on March 3, March 16, April 1, May 7, and June 2, 2020. On July 1,
2007, the company disclosed the “Announcement on Adjusting the Price Cap for the Repurchase of A Shares and
the Progress of Repurchasing Part of A Shares after the Implementation of the 2019 Annual Equity Distribution
Plan” (Announcement No.: 2020-039).As of June 30, 2020, the company has repurchased 15,094,870 shares (A
31
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
shares) through centralized bidding transactions via a special securities repurchase account, accounting for
1.4961% of the company’s total share capital, of which the highest transaction price was RMB 21.06 per share
and the lowest transaction price was RMB 17.95 per share, and the total amount paid was RMB 300,007,852.84
(including transaction costs).As of July 31, 2020, the company has repurchased 19,596,277 shares (A shares)
through centralized bidding transactions via a special securities repurchase account, accounting for 1.9422% of
the company’s total share capital, of which the highest transaction price was RMB 22.89 per share and the lowest
transaction price was RMB 17.95 per share, and the total amount paid was RMB 400,017,180.33 (including
transaction costs).The repurchase complies with relevant laws and regulations and complies with the established
repurchase plan.
XVIII. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
32
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in Shares
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Bon Capitaliz
New
us ation of Proporti
Amount Proportion shares Others Subtotal Amount
shar public on
issued
es reserve
I. Restricted shares 80,080 0.01% 9,938 9,938 90,018 0.01%
1. State-owned shares 0 0
2. State-owned legal person’s
0 0
shares
3. Other domestic shares 80,080 0.01% 9,938 9,938 90,018 0.01%
Domestic natural person’s
80,080 0.01% 9,938 9,938 90,018 0.01%
shares
4. Foreign shares 0 0
II. Unrestricted shares 1,008,870,490 99.99% -9,938 -9,938 1,008,860,552 99.99%
1. RMB ordinary shares 836,490,490 82.90% -9,938 -9,938 836,480,552 82.90%
2. Domestically listed foreign
172,380,000 17.09% 172,380,000 17.09%
shares
3. Overseas listed foreign shares 0 0
4. Others 0 0
III. Total shares 1,008,950,570 100.00% 0 1,008,950,570 100.00%
Reasons for share changed
□Applicable √ Not applicable
Approval of share changed
□Applicable √ Not applicable
Ownership transfer of share changed
□Applicable √Not applicable
Progress of shares buy-back
√ Applicable □ Not applicable
The company held the eleventh meeting of the ninth board of directors on February 13, 2020, which deliberated
and approved the "Proposal on Repurchasing Part of the Company's A Shares by Centralized Bidding". On
33
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
February 21, 2020, it disclosed the "Repurchase Report on Repurchasing Part of the Company's A Shares by
Centralized Bidding Transactions" (Announcement No.: 2020-005) on China Securities Journal, Securities Times,
Hong Kong Commercial Daily and www.cninfo.com.cn. On February 28, 2020, the company disclosed the
"Announcement on the Initial Repurchase of the Company Shares" (Announcement No.: 2020-006), and it
disclosed the “Announcement on the Progress of Repurchasing Part of A Shares” (Announcement Nos.: 2020-007,
2020-008, 2020-009, 2020-022, 2020-033) on March 3, March 16, April 1, May 7, and June 2, 2020. On July 1,
2007, the company disclosed the “Announcement on Adjusting the Price Cap for the Repurchase of A Shares and
the Progress of Repurchasing Part of A Shares after the Implementation of the 2019 Annual Equity Distribution
Plan” (Announcement No.: 2020-039).
As of June 30, 2020, the company has repurchased 15,094,870 shares (A shares) through centralized bidding
transactions via a special securities repurchase account, accounting for 1.4961% of the company’s total share
capital, of which the highest transaction price was RMB 21.06 per share and the lowest transaction price was
RMB 17.95 per share, and the total amount paid was RMB 300,007,852.84 (including transaction costs).
As of July 31, 2020, the company has repurchased 19,596,277 shares (A shares) through centralized bidding
transactions via a special securities repurchase account, accounting for 1.9422% of the company’s total share
capital, of which the highest transaction price was RMB 22.89 per share and the lowest transaction price was
RMB 17.95 per share, and the total amount paid was RMB 400,017,180.33 (including transaction costs).
The repurchase complies with relevant laws and regulations and complies with the established repurchase plan.
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable √Not applicable
2. Changes of restricted shares
√ Applicable □ Not applicable
In Share
Opening shares Shares released Restricted Shares Ending shares
Shareholders Restricted reasons Date for released
restricted in Period ncreased In the Period restricted
Chen Xuejun 26,065 8,688 34,753 Leave office 2020-12-18
Dai Lizhong 1,500 500 2,000 Leave office 2020-11-28
Chen Ran 0 750 750 Elected supervisor According to the rules
Total 27,565 0 9,938 37,503 -- --
34
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference shareholders with voting rights
Total common shareholders at period-end 59,709 0
recovered at end of reporting period (if applicable)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Number of
Total common Amount of Amount of
share
Proportion shareholders Changes in restrict un-restrict
Nature of pledged/frozen
Full name of Shareholders of shares
shareholder at the end of report period common common
held
State of Amo
report period shares held shares held
share unt
Wuxi Industry Development State-owned
20.22% 204,059,398 0 204,059,398
Group Co., Ltd. corporate
Foreign
ROBERT BOSCH GMBH 14.16% 142,841,400 0 142,841,400
corporate
Hong Kong Securities
Foreign
Clearing Company Ltd. 5.60% 56,509,620 1,278,957 56,509,620
corporate
(HKSCC)
BBH BOS S/A FIDELITY FD Foreign
1.84% 18,530,315 0 18,530,315
- CHINA FOCUS FD corporate
Central Huijin Assets State-owned
1.27% 12,811,200 0 12,811,200
Management Co., Ltd. corporate
Monetary Authority of Macao Foreign
0.88% 8,923,416 2,721,307 8,923,416
- own fund corporate
Basic Pension Insurance
Other 0.83% 8,420,995 4,186,831 8,420,995
Fund- 1003
FIDELITY INVMT TRT
Foreign
FIDELITY INTL SMALL 0.77% 7,725,486 1,314,484 7,725,486
corporate
CAP FUND
NSSF - 413 Other 0.62% 6,300,027 1,515,049 6,300,027
NSSF - 103 Other 0.59% 5,999,932 5,999,932 5,999,932
Strategy investors or general corporation
comes top 10 shareholders due to rights Not applicable
issue (if applicable)
Explanation on associated relationship Among the top ten shareholders, there has no associated relationship between Wuxi
35
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
among the aforesaid shareholders Industry Development Croup Co., Ltd. and other shareholders, the first largest
shareholder of the Company; and they do not belong to the consistent actionist
regulated by the Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Particular about top ten shareholders with un-restrict common shares held
Amount of un-restrict Type of shares
Shareholders’ name common shares held
Type Amount
at Period-end
Wuxi Industry Development Group Co., Ltd. 204,059,398 RMB common shares 204,059,398
RMB common shares 115,260,600
ROBERT BOSCH GMBH 142,841,400
Domestically listed foreign shares 27,580,800
Hong Kong Securities Clearing Company Ltd.
56,509,620 RMB common shares 56,509,620
(HKSCC)
BBH BOS S/A FIDELITY FD - CHINA
18,530,315 Domestically listed foreign shares 18,530,315
FOCUS FD
Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common shares 12,811,200
Monetary Authority of Macao - own fund 8,923,416 RMB common shares 8,923,416
Basic Pension Insurance Fund- 1003 8,420,995 RMB common shares 8,420,995
FIDELITY INVMT TRT FIDELITY INTL
7,725,486 Domestically listed foreign shares 7,725,486
SMALL CAP FUND
NSSF - 413 6,300,027 RMB common shares 6,300,027
NSSF - 103 5,999,932 RMB common shares 5,999,932
Expiation on associated relationship or Among the top ten shareholders, there has no associated relationship between
consistent actors within the top 10 un-restrict Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first
common shareholders and between top 10 largest shareholder of the Company; and they do not belong to the consistent
un-restrict common shareholders and top 10 actionist regulated by the Management Measure of Information Disclosure on
common shareholders Change of Shareholding for Listed Company.
Explanation on top 10 shareholders involving
Not applicable
margin business (if applicable)
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.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
36
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
37
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
38
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
39
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section IX. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
Amount of Amount of Number of
Number of Number of
Shares shares shares Shares restricted
restricted restricted
Working held at increased decreased held at stocks granted
Title stocks granted stocks granted
Name status period-beg in this in this period-end at
in the period at period-end
in (Share) period period (Share) period-begin
(shares) (shares)
(Share) (Share) (shares)
Wang Currently
Chairman 20,781 20,781
Xiaodong in office
Rudolf Vice Currently
Maier Chairman in office
Vice
Xu Currently
Chairman, 13,000 13,000
Yunfeng in office
GM
Director,
standing
deputy
Currently
Ou Jianbin General 10,000 10,000
in office
Manager and
financing
Charger
Zhang Currently
Director
Xiaogeng in office
Chen Currently
Director
Yudong in office
Hua Currently
Director
Wanrong in office
Independent Currently
Yu Xiaoli
Director in office
Lou Independent Currently
Diming Director in office
Jin Independent Currently
Zhangluo Director in office
Xu Independent Currently
Xiaofang Director in office
40
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Chairman of
Shi the Currently
12,673 12,673
Xingyuan Supervisory in office
Committee
Ma Currently
Supervisor
Yuzhou in office
Currently
Chen Ran Supervisor 1,000 1,000
in office
Miao Currently
Deputy GM 10,000 10,000
Yuming in office
Currently
Xu Sheng Deputy GM
in office
Currently
Rong Bin Deputy GM
in office
Currently
Liu Jinjun Deputy GM
in office
Currently
Li Gang Chief engineer
in office
Zhou Secretary of Currently
3,565 3,565
Weixing the Board in office
Chen Leave
Chairman 34,753 34,753
Xuejun office
Dai Leave
Supervisor 2,000 2,000
Lizhong office
Total -- -- 106,772 1,000 0 107,772 0 0 0
II. Resignation and dismissal of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reason
Wang Xiaodong Chairman Be elected 2020-05-28 Be elected
Xu Yunfeng Vice Chairman Be elected 2020-06-18 Be elected
Xu Yunfeng GM Appointment 2020-05-28 Appointment
Xu Sheng Deputy GM Appointment 2020-05-28 Appointment
Rong Bin Deputy GM Appointment 2020-05-28 Appointment
Liu Jinjun Deputy GM Appointment 2020-05-28 Appointment
Li Gang Chief engineer Appointment 2020-05-28 Appointment
Chen Ran Supervisor Be elected 2020-05-28 Be elected
41
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Application for resignation due to
Chen Xuejun Chairman Leave office 2020-05-28
work reasons
Application for resignation due to
Chen Xuejun Director Leave office 2020-06-18
work reasons
Application for resignation due to
Dai Lizhong Supervisor Leave office 2020-05-28
work reasons
42
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section X. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
43
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section XI. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 2,564,147,609.58 1,596,893,711.87
Settlement provisions
Capital lent
Transaction financial assets 3,186,262,183.13 3,940,885,674.32
Derivative financial assets
Note receivable 985,930,905.61 1,812,141,371.94
Account receivable 3,674,151,635.33 2,310,666,475.89
Receivable financing 756,743,779.54 23,873,317.86
Accounts paid in advance 224,243,911.70 139,241,917.78
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 1,129,113,083.12 43,730,023.31
Including: Interest receivable 2,091,107.78 655,052.98
Dividend receivable 1,092,040,579.49 1,070,000.00
Buying back the sale of financial assets
Inventories 1,670,738,746.77 2,418,744,835.82
44
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 547,477,135.79 1,012,055,605.74
Total current assets 14,738,808,990.57 13,298,232,934.53
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 3,977,690,136.49 5,322,405,953.35
Investment in other equity instrument 285,048,000.00 285,048,000.00
Other non-current financial assets 1,723,343,284.00 1,043,589,987.43
Investment real estate 21,648,596.74 22,410,511.87
Fixed assets 2,875,000,573.89 2,845,176,078.20
Construction in progress 253,735,407.77 247,857,777.25
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 416,926,802.38 430,594,372.12
Expense on Research and Development
Goodwill 1,784,086.79 1,784,086.79
Long-term expenses to be apportioned 22,170,795.30 18,536,000.25
Deferred income tax asset 229,081,360.18 212,476,501.54
Other non-current asset 210,102,212.32 230,235,982.45
Total non-current asset 10,016,531,255.86 10,660,115,251.25
Total assets 24,755,340,246.43 23,958,348,185.78
Current liabilities:
Short-term loans 328,308,738.00 312,153,969.81
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 1,339,329,488.99 1,745,218,439.52
45
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Account payable 4,190,201,244.86 3,312,254,229.84
Accounts received in advance 1,873,510.34 113,737,432.61
Contractual liability 58,136,812.04
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 243,039,308.55 314,343,737.66
Taxes payable 99,211,334.02 129,538,411.86
Other account payable 433,417,811.60 65,266,262.39
Including: Interest payable 5,348.44
Dividend payable 367,000,766.60
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities 147,739,169.58
Total current liabilities 6,841,257,417.98 5,992,512,483.69
Non-current liabilities:
Insurance contract reserve
Long-term loans 20,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 35,108,263.11 35,108,263.11
Long-term wages payable 58,392,053.61 58,392,053.61
Accrual liability
Deferred income 342,551,476.28 365,116,022.98
Deferred income tax liabilities 21,045,135.05 22,566,051.72
Other non-current liabilities
Total non-current liabilities 477,096,928.05 481,182,391.42
Total liabilities 7,318,354,346.03 6,473,694,875.11
Owner’s equity:
46
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 3,391,527,806.33 3,391,527,806.33
Less: Inventory shares 300,007,852.84
Other comprehensive income 137,919.77 134,871.67
Reasonable reserve 2,636,485.98 3,247,757.06
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 12,309,546,790.54 12,076,443,635.56
Total owner’ s equity attributable to parent company 16,922,892,215.78 16,990,405,136.62
Minority interests 514,093,684.62 494,248,174.05
Total owner’ s equity 17,436,985,900.40 17,484,653,310.67
Total liabilities and owner’ s equity 24,755,340,246.43 23,958,348,185.78
Legal Representative: Wang Xiaodong
Person in charge of accounting works: OuJianbin
Person in charge of accounting institute: OuJianbin
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 1,814,721,636.94 965,770,877.82
Trading financial assets 3,053,235,591.18 3,758,789,072.68
Derivative financial assets
Note receivable 301,148,395.76 202,403,993.13
Account receivable 1,161,589,142.48 768,500,929.93
Receivable financing
Accounts paid in advance 125,616,113.42 89,116,730.45
Other account receivable 1,404,402,207.25 250,014,956.74
Including: Interest receivable 2,280,037.26 804,929.68
47
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Dividend receivable 1,115,292,687.93 1,070,000.00
Inventories 460,669,652.62 565,144,234.49
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 399,924,007.15 938,616,881.51
Total current assets 8,721,306,746.80 7,538,357,676.75
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 4,849,926,353.51 6,331,363,630.04
Investment in other equity instrument 209,108,000.00 209,108,000.00
Other non-current financial assets 1,723,343,284.00 1,043,589,987.43
Investment real estate
Fixed assets 1,806,345,623.11 1,646,333,216.50
Construction in progress 145,355,080.49 136,573,912.28
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 211,198,062.84 203,663,423.60
Research and development costs
Goodwill
Long-term deferred expenses 260,105.36
Deferred income tax assets 112,121,048.86 105,137,877.84
Other non-current assets 137,027,549.83 172,646,721.05
Total non-current assets 9,194,685,108.00 9,848,416,768.74
Total assets 17,915,991,854.80 17,386,774,445.49
Current liabilities
Short-term borrowings 156,224,237.11 116,126,459.33
Trading financial liability
Derivative financial liability
Notes payable 343,305,621.14 284,054,137.00
Account payable 1,174,285,272.28 930,273,146.35
48
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Accounts received in advance 12,010,730.30
Contractual liability 9,004,203.84
Wage payable 183,677,527.12 213,626,754.45
Taxes payable 56,030,565.60 56,540,307.59
Other accounts payable 378,353,017.16 11,976,576.21
Including: Interest payable
Dividend payable 351,251,997.80
Liability held for sale
Non-current liabilities due within one year
Other current liabilities 105,837,709.56
Total current liabilities 2,406,718,153.81 1,624,608,111.23
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 50,058,386.76 50,058,386.76
Accrued liabilities
Deferred income 301,626,400.33 322,971,778.82
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 351,684,787.09 373,030,165.58
Total liabilities 2,758,402,940.90 1,997,638,276.81
Owners’ 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 3,481,221,286.39 3,488,221,286.39
Less: Inventory shares 300,007,852.84
Other comprehensive income
Special reserve
49
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 10,457,324,414.35 10,381,863,816.29
Total owner’s equity 15,157,588,913.90 15,389,136,168.68
Total liabilities and owner’s equity 17,915,991,854.80 17,386,774,445.49
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 6,594,403,624.56 4,403,444,346.05
Including: Operating income 6,594,403,624.56 4,403,444,346.05
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 6,098,234,750.74 4,005,776,550.51
Including: Operating cost 5,413,969,374.53 3,405,386,504.44
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 31,961,549.15 34,534,571.66
Sales expense 138,394,171.31 104,270,647.40
Administrative expense 336,984,661.28 310,909,980.43
R&D expense 211,531,953.72 180,167,642.16
Financial expense -34,606,959.25 -29,492,795.58
Including: Interest expenses 5,800,553.09 9,264,648.42
Interest income 43,053,210.79 48,416,919.83
Add: other income 43,932,417.68 17,632,117.95
Investment income (Loss is listed with “-”) 923,574,526.61 888,216,680.48
Including: Investment income on affiliated company
785,533,710.72 790,465,131.05
and joint venture
The termination of income recognition for
-408,092.36
financial assets measured by amortized cost(Loss is listed with
50
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
“-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with
258,157.65 30,686,277.13
“-”)
Loss of credit impairment (Loss is listed with “-”) -3,622,549.31 -6,237,790.75
Losses of devaluation of asset (Loss is listed with “-”) -52,807,909.47 -1,500,885.27
Income from assets disposal (Loss is listed with “-”) 232,499.55 5,107,848.45
III. Operating profit (Loss is listed with “-”) 1,407,736,016.53 1,331,572,043.53
Add: Non-operating income 164,150.94 27,544,757.26
Less: Non-operating expense 4,124,451.68 2,631,453.02
IV. Total profit (Loss is listed with “-”) 1,403,775,715.79 1,356,485,347.77
Less: Income tax expense 57,505,452.12 81,382,654.54
V. Net profit (Net loss is listed with “-”) 1,346,270,263.67 1,275,102,693.23
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 1,346,270,263.67 1,275,102,693.23
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 1,326,344,424.98 1,256,661,577.09
2.Minority shareholders’ gains and losses 19,925,838.69 18,441,116.14
VI. Net after-tax of other comprehensive income 4,618.33 271,537.20
Net after-tax of other comprehensive income attributable to
3,048.10 261,591.54
owners of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under equity method
that cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be
3,048.10 261,591.54
reclassified subsequently to profit or loss
1.Other comprehensive income under equity method
51
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
that can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt
investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of
3,048.10 261,591.54
foreign currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to
1,570.23 9,945.66
minority shareholders
VII. Total comprehensive income 1,346,274,882.00 1,275,374,230.43
Total comprehensive income attributable to owners of
1,326,347,473.08 1,256,923,168.63
parent Company
Total comprehensive income attributable to minority
19,927,408.92 18,451,061.80
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 1.32 1.25
(ii) Diluted earnings per share 1.32 1.25
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: Wang Xiaodong
Person in charge of accounting works: OuJianbin
Person in charge of accounting institute: OuJianbin
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 2,336,262,373.08 2,092,474,460.24
Less: Operating cost 1,686,488,679.58 1,471,971,514.70
Taxes and surcharge 18,740,531.01 17,510,903.97
Sales expenses 13,053,690.12 15,320,342.43
Administration expenses 227,324,018.06 211,000,027.34
52
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
R&D expenses 90,410,044.71 75,873,810.90
Financial expenses -40,808,506.49 -41,092,188.59
Including: interest expenses 2,501,198.55 3,597,363.92
Interest income 39,756,148.10 44,742,417.24
Add: other income 35,239,425.50 11,683,224.30
Investment income (Loss is listed with “-”) 907,907,258.50 840,215,361.66
Including: Investment income on affiliated Company
708,709,791.17 742,463,812.23
and joint venture
The termination of income recognition for
financial assets measured by amortized cost (Loss is listed with
“-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) -403,481.50 30,195,948.00
Loss of credit impairment (Loss is listed with “-”) -1,033,980.28 -1,901,377.70
Losses of devaluation of asset (Loss is listed with “-”) -3,370,784.10 -24,294.39
Income on disposal of assets (Loss is listed with “-”) -174,293.98 1,844,051.48
II. Operating profit (Loss is listed with “-”) 1,279,218,060.23 1,223,902,962.84
Add: Non-operating income 22,947.75 15,034.36
Less: Non-operating expense 3,443,673.01 1,196,252.91
III. Total Profit (Loss is listed with “-”) 1,275,797,334.97 1,222,721,744.29
Less: Income tax 57,174,946.95 73,937,477.28
IV. Net profit (Net loss is listed with “-”) 1,218,622,388.02 1,148,784,267.01
(i)continuous operating net profit (net loss listed with ‘-”) 1,218,622,388.02 1,148,784,267.01
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under equity method
that cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(II) Other comprehensive income items which will be
53
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
reclassified subsequently to profit or loss
1.Other comprehensive income under equity method
that can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt
investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of
foreign currency financial statements
7.Other
VI. Total comprehensive income 1,218,622,388.02 1,148,784,267.01
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
5,676,491,804.78 4,275,001,010.93
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of
securities
54
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Write-back of tax received 15,404,444.43 25,327,532.10
Other cash received concerning operating activities 70,801,912.94 85,775,494.76
Subtotal of cash inflow arising from operating activities 5,762,698,162.15 4,386,104,037.79
Cash paid for purchasing commodities and receiving labor
4,122,764,678.30 2,534,137,461.67
service
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of capital lent
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 630,754,424.71 681,756,769.56
Taxes paid 314,691,082.22 310,797,279.61
Other cash paid concerning operating activities 256,830,904.51 169,088,618.70
Subtotal of cash outflow arising from operating activities 5,325,041,089.74 3,695,780,129.54
Net cash flows arising from operating activities 437,657,072.41 690,323,908.25
II. Cash flows arising from investing activities:
Cash received from recovering investment 4,008,128,352.27 3,686,500,000.00
Cash received from investment income 1,183,089,487.76 525,843,992.65
Net cash received from disposal of fixed, intangible and
25,781,114.63 72,457,256.41
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 investing activities 5,216,998,954.66 4,284,801,249.06
Cash paid for purchasing fixed, intangible and other
218,473,940.03 237,326,162.98
long-term assets
Cash paid for investment 3,553,000,000.00 3,658,800,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 49,930,736.62
Other cash paid concerning investing activities 24,000,000.00
Subtotal of cash outflow from investing activities 3,771,473,940.03 3,970,056,899.60
Net cash flows arising from investing activities 1,445,525,014.63 314,744,349.46
III. Cash flows arising from financing activities
Cash received from absorbing investment 13,880,037.60
55
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Including: Cash received from absorbing minority
13,880,037.60
shareholders’ investment by subsidiaries
Cash received from loans 245,289,418.04 393,249,222.11
Other cash received concerning financing activities 5,470,000.00
Subtotal of cash inflow from financing activities 250,759,418.04 407,129,259.71
Cash paid for settling debts 203,192,671.61 378,622,036.77
Cash paid for dividend and profit distributing or interest
747,748,424.37 836,528,586.57
paying
Including: Dividend and profit of minority shareholder paid
by subsidiaries
Other cash paid concerning financing activities 300,007,852.84 5,809,091.00
Subtotal of cash outflow from financing activities 1,250,948,948.82 1,220,959,714.34
Net cash flows arising from financing activities -1,000,189,530.78 -813,830,454.63
IV. Influence on cash and cash equivalents due to fluctuation in
4,663,278.76 415,189.69
exchange rate
V. Net increase of cash and cash equivalents 887,655,835.02 191,652,992.77
Add: Balance of cash and cash equivalents at the period
820,498,653.85 2,404,674,139.49
-begin
VI. Balance of cash and cash equivalents at the period -end 1,708,154,488.87 2,596,327,132.26
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
2,137,522,482.58 2,342,213,493.89
services
Write-back of tax received
Other cash received concerning operating activities 53,647,269.21 48,525,763.15
Subtotal of cash inflow arising from operating activities 2,191,169,751.79 2,390,739,257.04
Cash paid for purchasing commodities and receiving labor
1,258,667,867.50 1,218,981,667.53
service
Cash paid to/for staff and workers 356,095,444.60 369,225,756.08
Taxes paid 199,611,845.20 186,084,989.75
Other cash paid concerning operating activities 107,303,419.41 107,664,076.68
Subtotal of cash outflow arising from operating activities 1,921,678,576.71 1,881,956,490.04
Net cash flows arising from operating activities 269,491,175.08 508,782,767.00
56
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
II. Cash flows arising from investing activities:
Cash received from recovering investment 3,605,396,703.43 3,521,500,000.00
Cash received from investment income 1,141,100,004.91 506,897,740.22
Net cash received from disposal of fixed, intangible and
3,870,511.23 4,034,532.29
other long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 139,134,277.49 215,512,158.54
Subtotal of cash inflow from investing activities 4,889,501,497.06 4,247,944,431.05
Cash paid for purchasing fixed, intangible and other
113,826,331.79 158,044,430.36
long-term assets
Cash paid for investment 3,070,448,157.81 3,328,800,000.00
Net cash received from subsidiaries and other units obtained 82,156,428.71
Other cash paid concerning investing activities 150,000,000.00 187,880,372.33
Subtotal of cash outflow from investing activities 3,334,274,489.60 3,756,881,231.40
Net cash flows arising from investing activities 1,555,227,007.46 491,063,199.65
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 100,000,000.00 160,000,000.00
Other cash received concerning financing activities 21,620,000.00
Subtotal of cash inflow from financing activities 121,620,000.00 160,000,000.00
Cash paid for settling debts 60,000,000.00 180,000,000.00
Cash paid for dividend and profit distributing or interest
744,490,470.75 831,020,889.20
paying
Other cash paid concerning financing activities 316,627,852.84
Subtotal of cash outflow from financing activities 1,121,118,323.59 1,011,020,889.20
Net cash flows arising from financing activities -999,498,323.59 -851,020,889.20
IV. Influence on cash and cash equivalents due to fluctuation in
4,152,072.50 593,522.94
exchange rate
V. Net increase of cash and cash equivalents 829,371,931.45 149,418,600.39
Add: Balance of cash and cash equivalents at the period
532,115,862.26 1,920,076,358.43
-begin
VI. Balance of cash and cash equivalents at the period -end 1,361,487,793.71 2,069,494,958.82
57
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020 semi-annual
Owners’ equity attributable to the parent Company
Other Pr
equity ov
instrument isi
Item Other on
Perp Less: Ot Minority Total owners’
Share Pref Capital comprehen Reasonable of
etual Inventory Surplus reserve Retained profit he Subtotal interests equity
capital erre Ot reserve sive reserve ge
capit shares r
d he income ne
al
stoc r ral
secu
k ris
rities
k
I. Balance at the 1,008,950, 3,391,527,8
134,871.67 3,247,757.06 510,100,496.00 12,076,443,635.56 16,990,405,136.62 494,248,174.05 17,484,653,310.67
end of the last year 570.00 06.33
Add: Changes of
accounting policy
Error correction of
the last period
Enterprise
combine under
the same control
Other
II. Balance at the 1,008,950, 3,391,527,8
beginning of this 134,871.67 3,247,757.06 510,100,496.00 12,076,443,635.56 16,990,405,136.62 494,248,174.05 17,484,653,310.67
570.00 06.33
year
III.Increase/
Decrease in this 300,007,85
3,048.10 -611,271.08 233,103,154.98 -67,512,920.84 19,845,510.57 -47,667,410.27
year (Decrease is 2.84
listed with “-”)
58
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(i) Total
comprehensive 3,048.10 1,326,344,424.98 1,326,347,473.08 19,927,408.92 1,346,274,882.00
income
(ii) Owners’ 300,007,85
devoted and -300,007,852.84 15,598,792.00 -284,409,060.84
2.84
decreased capital
1.Common shares
invested by 15,598,792.00 15,598,792.00
shareholders
2. Capital invested
by holders of other
equity instruments
3.Amount
reckoned into
owners equity with
share-based
payment
300,007,85
4. Other -300,007,852.84 -300,007,852.84
2.84
(III)Profit
-1,093,241,270.00 -1,093,241,270.00 -15,748,768.80 -1,108,990,038.80
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -1,093,241,270.00 -1,093,241,270.00 -15,748,768.80 -1,108,990,038.80
shareholders)
4. Other
(IV)Carrying
forward internal
owners’ equity
1. Capital reserves
59
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
conversed to
capital (share
capital)
2.Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V)Reasonable
-611,271.08 -611,271.08 68,078.45 -543,192.63
reserve
1. Withdrawal in
11,612,779.18 11,612,779.18 1,079,264.69 12,692,043.87
the report period
2. Usage in the
12,224,050.26 12,224,050.26 1,011,186.24 13,235,236.50
report period
(VI)Others
IV. Balance at the 1,008,950, 3,391,527,8 300,007,85
end of the report 137,919.77 2,636,485.98 510,100,496.00 12,309,546,790.54 16,922,892,215.78 514,093,684.62 17,436,985,900.40
570.00 06.33 2.84
period
60
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Last Period
In RMB
2019 semi-annual
Owners’ equity attributable to the parent Company
Other
equity Les Pro
instrument s: visi
Item Perpe Inv Other on Ot Minority Total owners’
Share Reasonable Surplus
tual Capital reserve ent comprehensive of Retained profit he Subtotal interests equity
capital Prefe O reserve reserve
capita ory income gen r
rred th
l sha eral
stock er
securi res risk
ties
I. Balance at 1,008,950 3,416,022,795.1 510,100,496.0
the end of the -19,809,442.95 1,618,490.50 10,996,945,870.13 15,913,828,778.82 538,142,268.53 16,451,971,047.35
,570.00 4 0
last year
Add: Changes
of accounting 19,809,442.95 -19,809,442.95
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 1,008,950 3,416,022,795.1 510,100,496.0
the beginning 0.00 1,618,490.50 10,977,136,427.18 15,913,828,778.82 538,142,268.53 16,451,971,047.35
,570.00 4 0
of this year
III. Increase/
Decrease in
261,591.54 917,170.19 82,068,587.53 83,247,349.26 33,215,155.68 116,462,504.94
this year
(Decrease is
61
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
listed with “-”)
(i)Total
comprehensive 1,256,661,577.09 1,256,661,577.09 18,451,061.80 1,275,112,638.89
income
(ii) Owners’
devoted and
14,461,725.98 14,461,725.98
decreased
capital
1.Common
shares invested
by
shareholders
2.Capital
invested by
holders of
other equity
instruments
3.Amount
reckoned into
owners equity
with
share-based
payment
4. Other 14,461,725.98 14,461,725.98
(III) Profit
-1,174,592,989.56 -1,174,592,989.56 -1,174,592,989.56
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -1,210,740,684.00 -1,210,740,684.00 -1,210,740,684.00
shareholders)
62
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4. Other 36,147,694.44 36,147,694.44 36,147,694.44
(IV) Carrying
forward
internal
owners’ equity
1.Capital
reserves
conversed to
capital (share
capital)
2.Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)Reasonable
917,170.19 917,170.19 302,367.90 1,219,538.09
reserve
1. Withdrawal
10,101,863.74 10,101,863.74 892,049.10 10,993,912.84
in the report
63
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
period
2. Usage in the
9,184,693.55 9,184,693.55 589,681.20 9,774,374.75
report period
(VI)Others 261,591.54 261,591.54 261,591.54
IV. Balance at 1,008,950 3,416,022,795.1 510,100,496.0
the end of the 261,591.54 2,535,660.69 11,059,205,014.71 15,997,076,128.08 571,357,424.21 16,568,433,552.29
,570.00 4 0
report period
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
2020 semi-annual
Other equity instrument Other
Item Preferr Perpetual Capital public Less: Inventory compreh Reasonable Oth
Share capital Othe Surplus reserve Retained profit Total owners’ equity
ed capital reserve shares ensive reserve er
r
stock securities income
I. Balance at the end of 1,008,950,570
3,488,221,286.39 0.00 510,100,496.00 10,381,863,816.29 15,389,136,168.68
the last year .00
Add: Changes of
accounting policy
Error correction of the last
period
Other
II. Balance at the 1,008,950,570
3,488,221,286.39 0.00 510,100,496.00 10,381,863,816.29 15,389,136,168.68
beginning of this year .00
III. Increase/ Decrease in
this year (Decrease is -7,000,000.00 300,007,852.84 75,460,598.06 -231,547,254.78
listed with “-”)
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(i) Total comprehensive
1,218,622,388.02 1,218,622,388.02
income
(ii) Owners’ devoted and
300,007,852.84 -49,920,519.96 -349,928,372.80
decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other 300,007,852.84 -49,920,519.96 -349,928,372.80
(III) Profit distribution -1,093,241,270.00 -1,093,241,270.00
1. Withdrawal of surplus
reserves
2. Distribution for owners
-1,093,241,270.00 -1,093,241,270.00
(or shareholders)
3. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital (share
capital)
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserve
4．Carry-over retained
earnings from the defined
benefit plans
5．Carry-over retained
earnings from other
comprehensive income
65
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
6. Other
(V) Reasonable reserve -1,177,442.02 -1,177,442.02
1. Withdrawal in the
2,924,878.27 2,924,878.27
report period
2. Usage in the report
4,102,320.29 4,102,320.29
period
(VI)Others -7,000,000.00 1,177,442.02 -5,822,557.98
IV. Balance at the end of 1,008,950,570
3,481,221,286.39 300,007,852.84 0.00 510,100,496.00 10,457,324,414.35 15,157,588,913.90
the report period .00
Last period
In RMB
2019 semi-annual
Other equity instrument Less:
Item Other
Perpetual Capital public Invent Reasonable Oth Total owners’
Share capital Preferre comprehensive Surplus reserve Retained profit
capital Other reserve ory reserve er equity
d stock income
securities shares
I. Balance at the end of 1,008,950,570
3,488,221,286.39 -19,809,442.95 510,100,496.00 9,340,610,451.36 14,328,073,360.80
the last year .00
Add: Changes of
19,809,442.95 -19,809,442.95
accounting policy
Error correction of the
last period
Other
II. Balance at the
1,008,950,570 3,488,221,286.39 0.00 510,100,496.00 9,320,801,008.41 14,328,073,360.80
beginning of this year
66
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
.00
III. Increase/ Decrease
in this year (Decrease is -25,808,722.55 -25,808,722.55
listed with “-”)
(i)Total comprehensive
1,148,784,267.01 1,148,784,267.01
income
(ii) Owners’ devoted
and decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity with
share-based payment
4. Other
(III) Profit distribution -1,174,592,989.56 -1,174,592,989.56
1. Withdrawal of surplus
reserves
2.Distribution for
owners (or -1,210,740,684.00 -1,210,740,684.00
shareholders)
3. Other 36,147,694.44 36,147,694.44
(IV) Carrying forward
internal owners’ equity
1.Capital reserves
conversed to capital
(share capital)
2.Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
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4．Carry-over retained
earnings from the
defined benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
1,474,547.80 1,474,547.80
report period
2. Usage in the report
1,474,547.80 1,474,547.80
period
(VI)Others
IV. Balance at the end of 1,008,950,570
3,488,221,286.39 0.00 510,100,496.00 9,294,992,285.86 14,302,264,638.25
the report period .00
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I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled 115.4355 million Yuan,
including state-owned share capital amounting to 92.4355 million Yuan, public corporate share capital amounting
to 8 million Yuan and inner employee share capital amounting to 15 million Yuan.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of 1.00 Yuan for each, and the total value of those
shares amounted to 68 million Yuan. After the issuance, the Company’s total share capital increased to 183.4355
million Yuan.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to 303.4355 million Yuan.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to 394.46615 million Yuan, of which state-owned shares amounted to 120.16615 million
Yuan, public corporate shares 10.4 million Yuan, foreign-funded shares (B-share) 88.40 million Yuan, RMB
ordinary shares (A-share) 156 million Yuan and inner employee shares 19.5 million Yuan.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of 10
Yuan for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the
allotment increased to 436.36615 million Yuan, of which state-owned corporate shares amounted to 121.56615
million Yuan, public corporate shares 10.4 million Yuan, foreign-funded shares (B-share) 88.4 million Yuan and
RMB ordinary shares (A-share) 216 million Yuan.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
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conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd. issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in February 2012, the Company issued
RMB ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor
privately, Robert Bosch Co., Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company),
face value was ONE Yuan per share, added registered capital of 112,858,000Yuan, and the registered capital after
change was 680,133,995Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Robert
Bosch Company is the second majority shareholder of the Company.
In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting 1,020,200,992Yuan up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the
cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation
Limited Shenzhen Branch on September 16, 2015; after the cancellation of repurchase shares, the company’s
paid-up capital (share capital) becomes 1,008,950,570 Yuan after the change.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road, Xinwu District, Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors (BOD) and the Board of Supervisors
(BOS)
The Company sets up Administration Department, Technology Centre, human resources, Office of the BOD,
compliance department, IT department, Strategy& Market Department, Party-masses Department, Finance
Department, Purchase Department,Manufacturing Quality Department, MS (Mechanical System) division,
AC(Automobile Components) division and DS (Diesel System ) division etc. and subsidiaries such as Wuxi Weifu
Leader Catalytic Converter Co., Ltd. and Nanjing Weifu Jinning Co., Ltd.
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3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products, fuel oil system testers and equipment, manufacturing of auto
electronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaust
after-treatment system; sales of the general machinery, hardware & electrical equipment, chemical products & raw
materials (excluding hazardous chemicals), automobile components and vehicles (excluding nine-seat passenger
car); internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. Engineering and technical
research & experimental development; R&D of energy recovery system; manufacturing of auto parts and fittings;
manufacture of general machinery(excluding manufacture of special equipment) .(any projects that needs to be
approved by laws can only be carried out after getting approval by relevant authorities)
Major subsidiaries respectively activate in production and sales of engine accessories, automobile components,
mufflers, and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereof
Financial report of the Company were approved by the Board of Directors for reporting dated 21 August 2020.
5. Scope of consolidate financial statement
Shareholding ratio (%) Registered
Proportion capital Statement
Short name of
Name of subsidiary of votes (in 10 Business scope consolidat
subsidiary Directly Indirectly
(%) thousand e (Y/N)
Yuan)
Internal-combustion Y
Nanjing Weifu Jinning Co., Ltd. Weifu Jinning 80.00 -- 80.00 34,628.70
engine accessories
Wuxi Weifu Leader Catalytic Y
Weifu Leader 94.81 -- 94.81 50,259.63 Purifier and muffler
Converter Co., Ltd.
Weifu Mashan Pump Glib Co., Internal-combustion Y
Weifu Mashan 100.00 -- 100.00 16,500
Ltd. engine accessories
Internal-combustion Y
Wuxi Weifu Chang’an Co., Ltd. Weifu Chang’an 100.00 -- 100.00 21,000
engine accessories
Wuxi Weifu International Trade Weifu Y
100.00 -- 100.00 3,000 Trade
Co. Ltd. International Trade
Wuxi Weifu Schmidt Power Internal-combustion Y
Weifu Schmidt 66.00 -- 66.00 7,600
System Spare Parts Co., Ltd. engine accessories
Ningbo Weifu Tianli Weifu Tianli 98.83 1.17 100.00 11,136 Internal-combustion Y
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Supercharging Technique Co., engine accessories
Ltd.
Wuxi Weifu-Autocam Fine Automobile Y
Weifu Autocam 51.00 -- 51.00 USD2,110
Machinery Co. Ltd. components
Wuxi Weifu Leader Catalytic Weifu Leader Y
-- 60.00 60.00 1,000 Purifier and muffler
Converter (Wuhan) Co., Ltd. (Wuhan)
Weifu Leader (Chongqing) Y
Weifu Leader
Automobile Components Co., -- 100.00 100.00 5,000 Purifier and muffler
(Chongqing)
Ltd
Nanchang Weifu Leader Y
Weifu Leader
Automobile components Co., -- 100.00 100.00 5,000 Purifier and muffler
(Nanchang)
Ltd.
Wuxi Weifu Electric Drive Weifu Electric Y
80.00 -- 80.00 USD2,000 Hub motor
Technology Co., Ltd. Drive
Weifu Holding ApS SPV 100.00 -- 100.00 DKK 37 Investment Y
Fuel cell Y
IRD Fuel Cells A/S IRD -- 66.00 66.00 DKK8,560
components
Fuel cell Y
IRD FUEL CELLS LLC IRD America -- 66.00 66.00 USD300
components
Wuxi Weifu ITM Supercharging Technique Co., Ltd was absorbed and merged by the Company on January 1, 202
0. So, compared with the end of last year, it was not listed separately in Scope of consolidate financial statement.
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance, the specific 42 accounting rules revised and issued dated 15 February 2006
and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
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In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact
sustainable operation ability of the Company within 12 months since end of the reporting period.
V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, automobile components, mufflers and purifiers etc., in line with the real operational characteristics and
relevant accounting standards, many specific accounting policies and estimation have been formulated for the
transactions and events with revenue recognized concerned. As for the explanation on major accounting judgment
and estimation, found more in Note V-32- Other important accounting policy and accounting estimation.
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises, which truly and completely reflected the financial information of the Company during the
reporting period such as financial position, operation achievements and cash flow.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
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5. Accounting Treatment Method for Business Combinations under the same/different control
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the
combination.As a purchaser, fair value of the assets (equity of purchaser held before the date of purchasing
included) for purchasing controlling right from the purchaser, the liability occurred or undertake on purchasing
date less the fair value of identifiable net assets of the purchaser obtained in combination, recognized as goodwill
if the results is positive; if the number is negative, the acquirer shall firstly review the measurement of the fair
value of the identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the
combination costs.After that, if the combination costs are still lower than the fair value of the identifiable net
assets obtained, the acquirer shall recognize the difference as the profit or loss in the current period.Other directly
expenses cost for combination shall be reckoned into current gains/losses. Difference of the fair value of assets
paid and its book values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or
contingency of the purchaser obtained by the Company recognized by fair value, that required identification
conditions; Acquisition date refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the invested
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party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested
party.Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
de-consolidated from the date that such control ceases.All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being
disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
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loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest, less the net assets attributable to the company since the acquisition date, is recognized as the investment
income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
purchaser directly when the control is lost, namely be transferred to current investment income other than the
relevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit scheme
by the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with
relevant accounting standards such as Accounting Standards for business Enterprises 2 – Long-term Equity
Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement.
The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
transactions met one or more of the following situations, the transactions shall normally be accounted for as a
bundle of transactions: ①The transactions are entered into after considering the mutual consequences of each
individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal in
commercial sense;③The occurrence of an individual transaction depends on the occurrence of one or more
individual transactions in the series; ④ The result of an individual transaction is not economical, but it would be
economical after taking into account of other transactions in the series. When the transactions are not regarded as
a bundle of transactions, the individual transactions shall be accounted as “disposal of a portion of an interest in a
subsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary which
lead to loss of control”. When the transactions are regarded as a bundle of transactions, the transactions shall be
accounted as a single disposal transaction; however, the difference between the consideration received from
disposal and the share of net assets disposed in each individual transactions before loss of control shall be
recognized as other comprehensive income, and reclassified as profit or loss arising from the loss of control when
control is lost.
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7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations.
The company confirms the following items related to the share of interests in its joint operations, and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Recognition standards for cash and cash equivalent
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held
by the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as
known amount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. There
into, the occurred foreign currency exchange or transactions involved in the foreign currency exchange are
converted in accordance with the actual exchange rate in the transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. There into, the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.
At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are
converted in accordance with the middle rate of the market exchange rate published by the People's Bank of China
on the transaction date without changing its original recording currency amount; the foreign currency non-monetary
items measured with the fair value are converted in accordance with the middle rate of the market exchange rate
published by the People's Bank of China on the fair value date,and the generated exchange gains and losses are
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included in the current profits and losses as the gains and losses from changes in fair value.
The following displays the methods for translating financial statements involving foreign operations into the
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
transaction dates.The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.
The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Recognition and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The recognition of a financial assets shall be terminated if it meets one of the following conditions:
① the contractual right to receive the cash flow of the financial assets terminates;
②The financial asset has been transferred, and the Company has transferred almost all risks and rewards of the
ownership of the financial asset to the transferee;
③The financial asset has been transferred. Although the Company has neither transferred nor retained almost all
the risks and rewards of the ownership of the financial asset, it has given up the control of the financial asset.
If all or part of the current obligations of a financial liability has been discharged, the financial liability or part of it
is terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the existing
financial liabilities with new financial liabilities, and the new financial liabilities and the existing financial liabilities
are substantially different from the contract terms, terminated the recognition of the existing financial liabilities and
recognize the new financial liabilities at the same time.
Financial assets are traded in the normal way and their accounting recognition and terminated the recognition of
proceed on a trade date basis.
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(2) Classification and measurement of financial assets
At the initial recognition, according to the business model of managing financial assets and the contractual cash
flow characteristics of financial assets, the Company classifies the financial assets into the financial assets
measured at amortized cost, the financial assets measured at fair value and whose changes are included in other
comprehensive income, and the financial assets measured at fair value and whose changes are included in current
profit or loss. Financial assets are measured at fair value at initial recognition, but if the receivables or receivables
financing arising from the sale of goods or the provision of services do not include a significant financing
component or do not consider a financing component that does not exceed one year, it shall be initially measured
in accordance with the transaction value. For financial assets measured at fair value and whose changes are
included in the current profit or loss, related transaction costs are directly included in the current profit and loss;
for other types of financial assets, related transaction costs are included in the initially recognized amount.
The business model for managing financial assets refers to how the Company manages financial assets to generate
cash flows. The business model determines whether the cash flow of financial assets managed by the Company is
based on contract cash flow, selling financial assets or both. The Company determines the business model for
managing financial assets based on objective facts and based on the specific business objectives of financial assets
management determined by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on a specific date are only payments for the
principal and the interest based on the outstanding principal amount. The principal is the fair value of the financial
assets at initial recognition; the interest includes the time value of money, the credit risk associated with the
outstanding principal amount for a specific period, and other basic borrowing risks, costs and consideration of profit.
In addition, the Company evaluates the contractual terms that may result in changes in the time distribution or the
amount of contractual cash flows of the financial assets to determine whether they meet the requirements of the
above contractual cash flow characteristics.
Only when the Company changes its business model of managing financial assets, all affected financial assets are
reclassified on the first day of the first reporting period after the business model changes, otherwise the financial
assets are not allowed to be reclassified after initial recognition.
① Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at amortized cost:
A. the group's business model for managing the financial assets is to collect contractual cash flows; and
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B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for
the principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost by using the effective interest method.
Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any
hedging relationship are included in current profit or loss when being derecognized, amortized by effective interest
method, or impaired.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at fair value and whose changes are included in other comprehensive income:
A. the Group's business model for managing the financial assets is targeted at both the collection of contractual
cash flows and the sale of financial assets; and
B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the
payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment losses
or gains and exchange gains and losses calculated by using the effective interest method are included in profit or loss
for the period, and other gains or losses are included in other comprehensive income. When being terminate for
recognition, the accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income and included in current profit or loss.
③Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are
included in other comprehensive income, the Company classifies all other financial assets as financial assets
measured at fair value and whose changes are included in current profit or loss. In the initial recognition, in order to
eliminate or significantly reduce accounting mismatch, the Company irreversibly designates part of the financial
assets that should be measured at amortized cost or measured at fair value and whose changes are included in the
other comprehensive income as the financial assets measured at fair value and whose changes are included in
current profit or loss.
After the initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses
(including interests and dividend income) are included in the current profit and loss, unless the financial assets are
part of the hedging relationship.
However, for non-trading equity instrument investments, the Company irreversibly designates them as the financial
assets that are measured at fair value and whose changes are included in other comprehensive income in the initial
recognition. The designation is made based on a single investment and the relevant investment is in line with the
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definition of equity instruments from the issuer's perspective. After initial recognition, such financial assets are
subsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss, and
other gains or losses and changes in fair value are included in other comprehensive income. When it is derecognized,
the accumulated gains or losses previously included in other comprehensive income are transferred from other
comprehensive income and included in retained earnings.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss and financial liabilities measured at amortized cost at the initial
recognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss, the related transaction expenses are included in the initial recognition
amount.
①Financial liability measured by fair value and with variation reckoned into current gains/losses
Financial liability measured by fair value and with variation reckoned into current gains/losses including
Transaction financial liability and the financial liabilities that are designated as fair value in the initial recognition
and whose changes are included in current profit or loss. For such financial liabilities, the subsequent measurement
is based on fair value, and the gains or losses arising from changes in fair value and the dividends and interest
expenses related to these financial liabilities are included in current profit or loss.
②Financial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. The
gain or loss arising from recognition termination or amortization is included in current profit or loss.
③Distinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.
B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially
adverse conditions.
C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments in
the future, and the enterprise will deliver a variable amount of its own equity instruments according to the contract.
D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in the
future, except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixed
amount of their own equity instruments.
An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deducting all
liabilities.
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If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets, the contractual obligation is consistent with the definition of financial liability.
If a financial instrument is required to be settled or can be settled by the Company's own equity instruments, it is
necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute
for cash or other financial assets, or to make the instrument holder enjoy the residual equity in the assets of the issuer
after deducting all liabilities. In the former case, the instrument is the Company's financial liability; if it is the latter,
the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have sufficient
available data and other information support to determine the fair value of related financial assets and financial
liabilities. The company divides the input values used by valuation techniques into the following levels and uses
them in sequence:
① The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on the
measurement date in the active market;
② The second-level input value is the direct or indirect observable input value of the relevant assets or liabilities
other than the first-level input value, including quotations of similar assets or liabilities in an active market;
quotations of same or similar assets or liabilities in an active market; other observable input value other than
quotations, such as interest rate and yield curves that are observable during the normal quote interval;
market-validated input value, etc.;
③ The third-level input value is the unobservable input value of the relevant assets or liabilities, including the
interest rate that cannot be directly observed or cannot be verified by observable market data, stock volatility, future
cash flow of the retirement obligation assumed in the business combination, and financial forecasting made by its
own data, etc.
(5) Impairment of financial assets
On the basis of expected credit losses, the Company performs impairment treatment on financial assets measured
at amortized cost and creditors’ investment measured at fair value and whose changes are included in other
comprehensive income and recognize the provisions for loss. For the account receivable or receivable financing
resulting by selling goods or providing services, if they contains no significant financing components or without
consider the financing components no more than one year, the company always measures its loss provisions
according to the amount of expected credit losses during the entire renewal period.
①Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
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original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received, that is, the present value of all cash shortages. Among them, for the purchase or source of financial
assets that have suffered credit impairment, the Company discounts the financial assets at the actual interest rate
adjusted by credit.
When measuring expected credit losses, the Company individually evaluates credit risk for financial assets with
significantly different credit risks, such as receivables involving litigation and arbitration with the other party, or
receivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations,
and so on.
Except for the financial assets that separately assess the credit risks, the Company classified the account
receivable according to their characteristic of risks, calculated the expected credit losses on basis of portfolio.
Basis for determining the portfolio as follow:
A - Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
B - Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
C-Other account receivables
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
As for the note receivable, account receivable and other account receivable classified in portfolio, by referring to
the experience of historical credit loss, the expected credit loss is calculated by combining the current situation
and the forecast of future economic conditions.
On December 31, 2019, the company reviewed the appropriateness of the provision for bad debts of receivables of
previous years.Based on the credit risk characteristics of bills receivable, comprehensively evaluated the credit
risk of bills receivable, the Company did not accrue credit impairment losses for bills receivable.There was a
correlation between the default probability of accounts receivable portfolio and other accounts receivable portfolio
and the aging, the aging was still a sign of whether the credit risk of the Company’s receivables had increased
significantly.Therefore, the Company’s credit loss risk from June 30, 2020 was estimated on the basis of the aging
and based on the original loss ratio.
Except for the above-mentioned financial assets adopting simplified metering method, the Company assesses at
each balance sheet date whether its credit risk has increased significantly since initial recognition. If credit risk has
not increased significantly since initial recognition, it is in the first stage, the Company measures the loss
provisions based on the amount equivalent to the expected credit loss in the next 12 months; if the credit risk has
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increased significantly since initial recognition but no credit impairment has occurred, it is in the second stage, the
Company measures the loss provisions based on the amount equivalent to the expected credit loss for the entire
duration; if credit impairment occurs after initial recognition, it is in the third stage, the Company measures the
loss provisions based on the amount equivalent to the expected credit loss for the entire duration.For financial
instruments with low credit risks at the balance sheet date, the Company assumes that their credit risks have not
increased significantly since initial recognition.
The Company evaluates the expected credit losses of financial instruments based on individual items and
portfolios. The Company considers the credit risk characteristics of different customers and evaluates the expected
credit losses of receivables based on the aging portfolios.
When assessing expected credit losses, the Company considers reasonable and evidence-based information about
past events, current conditions, and forecasts of future economic conditions.
When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flow
of a financial asset, the Company directly writes down the book balance of the financial asset.
②Assessment of a significant increase in credit risk:
The Company determines the relative changes in default risk of the financial instrument occurred in the expected
duration and assess whether the credit risks of financial instrument has increased significantly since the initial
recognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk of
default of financial instrument on the initial recognition date. When determining whether the credit risk has
increased significantly since the initial recognition, the Company considers reasonable and evidence-based
information that can be obtained without unnecessary additional costs or effort, including forward-looking
information. The information considered by the Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;
B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred or
are expected;
C. Serious deterioration of the debtor’s operating results that have occurred or are expected;
D. Changes in existing or anticipated technical, market, economic or legal circumstances that will have a material
adverse effect on the debtor's ability to repay the company.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly
on the basis of a single financial instrument or combination of financial instruments. When conducting an
assessment based on a combination of financial instruments, the Company can classify financial instruments based
on common credit risk characteristics, such as overdue information and credit risk ratings.
The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company, and the assessment does not consider the Company to
take recourse actions such as realizing collateral (if held).
③Financial assets with credit impairment
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On the balance sheet date, the Company assesses whether the credit of financial assets measured at amortized cost
and the credit of debt investments measured at fair value and whose changes are included in other comprehensive
income has been impaired. When one or more events that adversely affect the expected future cash flows of a
financial asset occur, the financial asset becomes a financial asset that has suffered credit impairment. Evidence that
credit impairment has occurred in financial assets includes the following observable information:
A. The issuer or the debtor has significant financial difficulties;
B. The debtor breaches the contract, such as default or overdue repayment of interest or principal;
C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic or
contractual considerations relating to the financial difficulties of the debtor;
D. The debtor is likely to go bankrupt or carry out other financial restructurings;
E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to
disappear.
④ Presentation of expected credit loss provisions
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company
re-measures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the loss
provisions shall be included in current profit and loss as impairment losses or gains. For financial assets measured at
amortized cost, the loss provisions are written off against the book value of the financial assets listed in the balance
sheet; for debt investments measured at fair value and whose changes are included in other comprehensive income,
the Company recognizes the loss provisions in other comprehensive income and does not deduct the book value of
the financial asset.
⑤Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially
recovered, directly write down the book balance of the financial asset. Such write-downs constitute the termination
of recognition for related financial assets. This usually occurs when the Company determines that the debtor has no
assets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However,
according to the Company's procedures for recovering the due amount, the financial assets that have been written
down may still be affected by the execution activities.
If the financial assets that have been written down are recovered afterwards, they shall be included in the profit or
loss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)
other than the issuer of the financial assets.
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For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets to
the transferee, terminate the recognition of the financial assets; if almost all the risks and rewards of ownership of
financial assets have been retained, do not terminate the recognition of the financial assets.
If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets,
dispose as following situations: If the control of the financial assets is abandoned, terminate the recognition of the
financial assets and determine the resulting assets and liabilities. If the control of the financial assets is not
abandoned, determine the relevant financial assets according to the extent to which they continue to be involved in
the transferred financial assets, and determine the related liabilities accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial
assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition,
the financial assets and liabilities are listed in the balance sheet without being balanced out.
11. Note receivable
The notes receivable settled by the Company are all bank acceptance and letters of credit, based on the credit risk
characteristics of notes receivable, the credit risk of notes receivable is comprehensively evaluated, the Company
does not make credit impairment losses for notes receivable.
12. Account receivable
(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued for single
item
Determine basis or amount standards for single The Company’s account receivables with above RMB 1 million in single item is
significant amount defined as account receivables with significant amount in single item.
In line with the difference of present value of future cash flow lower its book
Withdrawal method for account with single significant
value, carried out impairment test independently and withdrawal the bad debt
amount and withdrawal single item bad debt provision
reserves
(2) Receivables with bad debt provision accrual by credit portfolio
Classify to many combination based on credit portfolio for those receivables with minor account singly and those
with major amount but has no impairment been found after testing independently; base on the actual loss ratio of
the receivables of previous years, with same or similar credit portfolio, and combining actual condition accrual
bad debt reserves.
①Accrual ratio for bad debt provision of account receivable based on age analysis in account age portfolio:
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Account age Accrual ratio for account receivable Accrual ratio for other receivables
Within 6 months Without accrual Without accrual
6 months to one year 10% 10%
1－2 years 20% 20%
2－3 years 40% 40%
Over 3 years 100% 100%
②As for the receivable for parent company or the related party under the control of same parent company, no bad
debt provision accrual.
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for accrual: The present value of future cash flow has major difference with the receivable group’s
present value of future cash flow.
Accrual method for bad debt provision: Carried out impairment test independently, accrual bad debt reserves
according to the difference of present value of future cash flow lower its book value
The recognition standards and accrual method for bad debt provision of account receivable found more in
“10.Financial instrument”.
13.Account receivable financing
The Company measures the loss provision for the financing of receivables at the amount equivalent to the
expected credit loss during the entire duration, and the resulting increase or reversal of the loss provision is
included in the current profit and loss as an impairment loss or profit.
14. Other account receivables
Method for determining expected credit losses of other receivables and accounting treatment methods
For other receivables, whether or not it contains significant financing components, the company always measures its
loss provisions according to the amount of expected credit losses during the entire renewal period, and the resulting
increase or reversal amount of loss provisions is included in the current profit and loss as an impairment loss.
The company classifies other receivables into several combinations based on similar credit risk characteristics, and
calculates the expected credit losses based on all reasonable and evidenced information (including forward-looking
information) on the basis of combination, the basis for determining the combination is as follows:
Basis for
Item determining Method of measuring expected credit loss
portfolio
Other account Account age Refer to the historical credit loss experience, combine with the current situation and the forecast
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receivables of future economic conditions, compile a comparison table of the age of other receivables and the
expected credit loss rate of the entire renewal period, and calculate the expected credit losses.
15. Inventory
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventories
The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method,
and the difference in cost that it should bear is carried forward at the end of the period, and the standard cost is
adjusted to the actual cost.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of
overall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs of
inventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant to
categories.
As for finished goods, commodities and materials available for direct sales, their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production, their net realizable values are determined by the estimated selling
prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
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②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
16. Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction, the
non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur,
that is, the Company has made resolution on the selling plan and obtained definite purchase commitment, the
selling is estimated to be completed within one year. Those assets whose disposal is subject to approval from
relevant authority or supervisory department under relevant requirements are subject to that approval.
Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or
not the Company retains part equity investment after such disposal, investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale,
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.
The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties, which sets out certain major terms relating to transaction price, time and adequately
stringent punishment for default, which render an extremely minor possibility for material adjustment or
revocation of the agreement.
Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss and
recorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill in
the disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases, the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be
restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale, with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
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not be reverted.
The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized,
and the debt interests and other fees in the disposal group held for sale continue to be recognized.
If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale, they will be measured at the lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation, amortization or impairment that should have been recognized given they are not classified as held
for sale;
(ii) The recoverable amount.
17. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint
control or significant influence over the invested party. Long-term equity investment without control or joint
control or significant influence of the Group is accounted for as available-for-sale financial assets or financial
assets measured by fair value and with variation reckoned into current gains/losses. As for other accounting
policies found more in “10. Financial instrument” in Note V.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
①For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital, the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
For business combination resulted in an enterprise under common control by acquiring equity of the absorbing
party under common control through a stage-up approach with several transactions, these transactions will be
judged whether they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these
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transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a
basket”, the initial investment cost of the long-term equity investment shall be the absorbing party’s share of the
carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling
party on the date of combination. The difference between the initial cost of the long-term equity investment and
the aggregate of the carrying amount of the long-term equity investment before merging and the carrying amount
the additional consideration paid for further share acquisition on the date of combination shall offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other
comprehensive income recognized as a result of the previously held equity investment accounted for using equity
method on the date of combination or recognized for available-for-sale financial assets will not be accounted for.
②For a long-term equity investment acquired through a business combination involving enterprises not under
common control, the initial investment cost of the long-term equity investment shall be the cost of combination on
the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,
liabilities incurred or borne and equity securities issued, plus the combination cost measured by costs which have
directly connection with acquisition are considered as initial investment cost of such long-term equity
investment.Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the party
being combined as at the combination date are all measured at fair values, without consideration to amount of
minority interests. The surplus of combination cost less fair value net realizable assets of the party being
combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains and
losses.
For business combination resulted in an enterprise not under common control by acquiring equity of the acquire
under common control through a stage-up approach with several transactions, these transactions will be judged
whether they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these
transactions will be accounted for a transaction in obtaining control. If they are not belong to “transactions in a
basket”, the initial investment cost of the long-term equity investment accounted for using cost method shall be
the aggregate of the carrying amount of equity investment previously held by the acquire and the additional
investment cost. For previously held equity accounted for using equity method, relevant other comprehensive
income will not be accounted for. For previously held equity investment classified as available-for-sale financial
asset, the difference between its fair value and carrying amount, as well as the accumulated movement in fair
value previously included in the other comprehensive income shall be transferred to profit or loss for the current
period.
③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
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determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on invested party, the investment shall use cost method for measurement.
②Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the invested party are accounted for using equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor’s interest in the fair value of the invested party’s identifiable net assets at the acquisition date, no
adjustment shall be made to the initial investment cost. Where the initial investment cost is less than the investor’s
interest in the fair value of the invested party’s identifiable net assets at the acquisition date, the difference shall be
charged to profit or loss for the current period, and the cost of the long term equity investment shall be adjusted
accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the invested party,
respectively. Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying
amount of long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend
distributed by the invested party. In respect of the other movement of net profit or loss, other comprehensive
income and profit distribution of invested party, the carrying value of long-term equity investment shall be
adjusted and included in the capital reserves. The Group shall recognize its share of the invested party’s net profits
or losses based on the fair values of the invested party’s individual separately identifiable assets at the time of
acquisition, after making appropriate adjustments thereto. In the event of in-conformity between the accounting
policies and accounting periods of the invested party and the Company, the financial statements of the invested
party shall be adjusted in conformity with the accounting policies and accounting periods of the Company.
Investment gain and other comprehensive income shall be recognized accordingly. In respect of the transactions
between the Group and its associates and joint ventures in which the assets disposed of or sold are not classified as
operation, the share of unrealized gain or loss arising from inter-group transactions shall be eliminated by the
portion attributable to the Company. Investment gain shall be recognized accordingly. However, any unrealized
loss arising from inter-group transactions between the Group and an invested party is not eliminated to the extent
that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified
as operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment by the
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investor without obtaining control, the initial investment cost of additional long-term equity investment shall be
the fair value of disposed operation. The difference between initial investment cost and the carrying value of
disposed operation will be fully included in profit or loss for the current period. In the event that the Group sold an
asset classified as operation to its associates or joint ventures, the difference between the carrying value of
consideration received and operation shall be fully included in profit or loss for the current period. In the event
that the Company acquired an asset which formed an operation from its associates or joint ventures, relevant
transaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20
“Business combination”. All profit or loss related to the transaction shall be accounted for.
The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of
the long-term equity investment together with any long-term interests that in substance form part of the investor’s
net investment in the invested party are reduced to zero. If the Group has to assume additional obligations, the
estimated obligation assumed shall be provided for and charged to the profit or loss as investment loss for the
period. Where the invested party is making profits in subsequent periods, the Group shall resume recognizing its
share of profits after setting off against the share of unrecognized losses.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note V.-6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
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asset or liability by invested party on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of invested party) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method, other comprehensive income measured and reckoned under equity
method or financial instrument before control of the invested party unit acquired shall be accounted for in
accordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party
on pro rata basis at the time of disposal and shall be transferred to profit or loss for the current period on pro rata
basis; among the net assets of invested party unit recognized by equity method (excluding net profit or loss, other
comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current
period on pro rata basis.
In the event of loss of control over invested party due to partial disposal of equity investment by the Group, in
preparing separate financial statements, the remaining equity interest which can apply common control or impose
significant influence over the invested party after disposal shall be accounted for using equity method. Such
remaining equity interest shall be treated as accounting for using equity method since it is obtained and
adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose
significant influence over the invested party after disposal, it shall be accounted for using the recognition and
measurement standard of financial instruments. The difference between its fair value and carrying amount as at
the date of losing control shall be included in profit or loss for the current period. In respect of other
comprehensive income recognized using equity method or the recognition and measurement standard of financial
instruments before the Group obtained control over the invested party, it shall be accounted for in accordance with
the same accounting treatment for direct disposal of relevant asset or liability by invested party at the time when
the control over invested party is lost. Movement of other owners’ equity (excluding net profit or loss, other
comprehensive income and profit distribution under net asset of invested party accounted for and recognized
using equity method) shall be transferred to profit or loss for the current period at the time when the control over
invested party is lost. Of which, for the remaining equity interest after disposal accounted for using equity method,
other comprehensive income and other owners’ equity shall be transferred on pro rata basis. For the remaining
equity interest after disposal accounted for using the recognition and measurement standard of financial
instruments, other comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over invested party due to partial disposal of equity
investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition
and measurement standard of financial instruments. The difference between its fair value and carrying amount as
at the date of losing common control or significant influence shall be included in profit or loss for the current
period. In respect of other comprehensive income recognized under previous equity investment using equity
method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by invested party at the time when equity method was ceased to be used. Movement of other
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owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of
invested party accounted for and recognized using equity method) shall be transferred to profit or loss for the
current period at the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction
shall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The
difference between the disposal consideration for each transaction and the carrying amount of the corresponding
long-term equity investment of disposed equity interest before loss of control shall initially recognized as other
comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-23.”impairment of long-term assets”
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an invested party, but to fail to control or joint control the formulation of such policies together with other
parties.While recognizing whether have significant influence by invested party, the potential factors of voting
power as current convertible bonds and current executable warrant of the invested party held by investors and
other parties shall be thank over.
18. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
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under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to Note V-“23.Impairment of
long-term assets”
19. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a
service life excess one year and has more unit value.
(2) Depreciation methods
Category Depreciation Method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5 2.71~4.75
Machinery equipment Straight-line depreciation 10 5 9.50
Transportation equipment Straight-line depreciation 4~5 5 19.00~23.75
Electronic and other equipment Straight-line depreciation 3～10 5 9.50～31.67
For the fixed assets with impairment provision, the depreciation amount shall be calculated after deducting the
accumulated amount of impairment provision for fixed assets
(3) Recognition basis, valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:
① Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the lease
commencement date), the ownership of lease fixed assets can be transferred to the Company after the expiry of
the lease period;
② The Company has the option to purchase or lease the fixed assets, and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options, so whether the Company will
exercise the option can be reasonably determined on the lease commencement date;
③ Even though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of
the lease fixed assets;
④ The present value of the Company’s of minimum lease payment on the lease commencement date is equivalent
to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present value of the
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leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of the fair
value of the lease fixed assets on the lease commencement date;
⑤ The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.
(4) The impairment test method of fixed assets and the method of provision for impairment see Note
V-“23.Impairment of long-term assets”.
20. Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state, the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.
The basis of provision for impairment of properties held for construction in process is referred to Note
V-“23.Impairment of long-term assets”
21. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
①Capital expenditure has been occurred;
②Borrowing costs have been occurred;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such
assets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
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expenditure during periods in which construction of fixed assets, investment real estate and inventory are
interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the
acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
22. Intangible assets
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized evenly with the shortest terms among expected useful life, benefit years regulated in the
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contract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs and
current gains/losses according to the benefit object.
As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.
Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note
V-“23. Impairment of long-term assets”.
(2)Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
①It is technically feasible that the intangible asset can be used or sold upon completion;
②there is intention to complete the intangible asset for use or sale;
③ The products produced using the intangible asset has a market or the intangible asset itself has a market;
④there is sufficient support in terms of technology, financial resources and other resources in order to complete
the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤ the expenses attributable to the development phase of the intangible asset can be measured reliably.
If the expenses incurred during the development phase did not qualify the above mentioned conditions, such
expenses incurred are accounted for in the profit or loss for the current period.The development expenditure
reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet, and shall be transfer as intangible assets
since such item reached its expected conditions for service.
23. Impairment of long-term assets
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
non-current non-financial assets such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled
entities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall
be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
beyond working conditions will be tested for impairment annually, regardless of whether there is any indication of
impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
impairment provision will be made according to the difference and recognized as an impairment loss. The
recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
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determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,
including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the
asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over
the course of continued use and final disposal is determined as the amount discounted using an appropriately
selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it
is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the part whose value can be recovered.
24. Long-term deferred expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.
25. Contract liability
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between
performance obligations and customer payments. The Company offsets the contract assets and contract liabilities
under the same contract and lists as a net amount.
Contract liabilities refer to the obligations to transfer goods or services to customers for the consideration received
or receivable from customers, such as the payment received by an enterprise before the transfer of promised goods
or services.
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26. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
specified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3)Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the
employees who retire before schedule from the date on which the employees stop rendering services to the
scheduled retirement date, shall be recognized (as compensation for termination of employment) in the current
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profit or loss by the Group if the recognition principles for provisions are satisfied.
(4)Accounting for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the
employees satisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans,
and the defined benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan
assets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the supplementary
retirement benefits (including the service costs of the current period, the previous service costs, and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes
generated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other
consolidated income.
27. Accrual liabilities
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigation or arbitration,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
28. Revenue
Accounting policies for recognition and measurement of revenue
(applicable since 1 Jan. 2020)
1. Revenue recognition principle
On the starting date of the contract, the company evaluates the contract, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.
When one of the following conditions is met, it belongs to the performance obligation within a certain period of
time, otherwise, it belongs to the performance obligation at a certain point in time: (1) The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
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( 2) The customer can control the goods or services under construction during the company’s performance; (3)
The goods or services produced during the company’s performance have irreplaceable uses, and the company has
the right to collect payment for the performance part that has been completed so far during the entire contract
period.
For performance obligations performed within a certain period of time, the company recognizes revenue in
accordance with the performance progress during that period. When the performance progress cannot be
reasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, revenue is recognized at the point when the
customer obtains control of the relevant goods or services. When judging whether the customer has obtained
control of the goods, the company considers the following signs: (1) The company has the current right to receive
payment for the goods, that is, the customer has the current payment obligation for the goods; (2) The company
has transferred the legal ownership of the goods to the customer, that is, the customer has the legal ownership of
the goods; (3) The company has transferred the goods to the customer in kind, that is, the customer has physically
taken possession of the goods; (4) The company has transferred the main risks and rewards of the ownership of
the goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of the
goods; (5) The customer has accepted the goods; (6) Other signs that the customer has obtained control of the
goods.
2. Revenue measurement principle
(1) The company measures revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to customers, and does not include payments collected on behalf of third
parties and payments expected to be returned to customers.
(2) If there is variable consideration in the contract, the company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount, but the transaction price including the
variable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to be
significantly turned back when the relevant uncertainty is eliminated.
(3) If there is a significant financing component in the contract, the company shall determine the transaction price
based on the amount payable that the customer is assumed to pay in cash when obtaining the control of the goods
or services. The difference between the transaction price and the contract consideration shall be amortized by the
effective interest method during the contract period. On the starting date of the contract, if the company expects
that the customer pays the price within one year after obtaining control of the goods or services, the significant
financing components in the contract shall not be considered.
(4) If the contract contains two or more performance obligations, the company will allocate the transaction price
to each individual performance obligation based on the relative proportion of the stand-alone selling price of the
goods promised by each individual performance obligation on the starting date of the contract.
3. The specific method of revenue recognition
(1) Goods sales
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The company's sales of internal combustion engine accessories, purifiers, mufflers and other products belong to
the performance obligations at a certain point in time. The following conditions must be met for the revenue
recognition of domestic products: the company has delivered the product to the customer in accordance with the
contract and the customer has accepted the product, the payment has been collected or the receipt of payment has
been obtained, and the relevant economic benefits are likely to flow in, the main risks and rewards of the
ownership of the goods have been transferred, the legal ownership of the goods has been transferred. The
following conditions must be met to confirm the revenue of export products: the company has declared the
product in accordance with the contract, obtained the bill of lading, collected the payment or obtained the receipt
of payment, and related economic benefits are likely to flow in, and the main risks and rewards of the ownership
of the goods have been transferred, and the legal ownership of the goods has been transferred.
(2) Service delivery
Revenue from the delivery of service contracts between the company and its customers, because the customer
obtains and consumes the economic benefits brought about by the company’s performance at the same time when
the company performs the contract, and the company has the right to collect the revenue payment from the
completed performance during the entire contract period, the company regards it as a performance obligation
performed within a certain period of time, and recognizes revenue according to the performance progress, unless
the performance progress cannot be reasonably determined. The company determines theperformance progress of
the service delivery according to the input method or output method. When the performance progress cannot be
reasonably determined, if the company's incurred costs are expected to be compensated, the revenue shall be
recognized according to the amount of the incurred costs until the performance progress can be reasonably
determined.
(3) Rental income
Rental income of operating lease is recognized in accordance with the straight-line method during each period of
the lease term, and contingent rentals are included in the current profit and loss when they actually occur.
29. Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
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If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into current
gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period, than
recognized deferred income, and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred, than reckoned into current
gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations, different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods, deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income, then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses, excluding the follow income tax:
①Enterprise combination;
②Transactions or events recognized in owner’s equity directly
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31. Lease
(1)Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses.Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct costs
incurred by the Company shall be reckoned into value of assets lease-in.
Finance leased assets: on the lease commencement date, the company affirms the balance among the finance lease
receivables, the sum of un-guaranteed residual value and its present value as the unrealized financing income, and
recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to the
rental transaction, the company reckons in the initial measurement of the finance lease receivables, and reduces
the amount of income confirmed in the lease term.
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32. Other important accounting policy and accounting estimation
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,
the Company needs to judge, estimate and assume the book value of the report items cannot be accurately
measured. These judgments, estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors, which shall impact the reported amounts of
income, expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
However, the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of
continuing operations, the changes in accounting estimates only affect the current period, of which the impactsare
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods, of which the impacts are recognized in the current and future periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate
and assume are as follows:
(1) Provision for bad debts
The Company has used the expected credit loss model to assess the impairment of financial instruments since
2019. The application of the expected credit loss model requires significant judgement and estimates, and must
consider all reasonable and evidence-based information, including forward-looking information.In making such
judgments and estimates, the Company infers the expected changes in debtors’ credit risks based on historical
repayment data combined with economic policies, macroeconomic indicators, industry risks and other factors.
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
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balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
the output, price, and related operating expenses of the asset (or asset group) and the discount rate used for
calculating the present value. When estimating the recoverable amount, the Company shall adopt all the relevant
information can be obtained, including the prediction related to the output, price, and related operating expenses
based on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.
When estimating the present value of the future cash flow, the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group, and select the proper discount rate to determine the
present value of the future cash flows.
(4) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.
The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(5) Fair value of financial instrument
Financial instruments that do not have active markets to provide quotes need to use valuation techniques to
determine fair value.Valuation techniques include the latest transaction information, discounted cash flow methods,
and option pricing models.The Company has established a set of work processes to ensure that qualified personnel
are responsible for the calculation, verification and review of fair value.The valuation model used by the
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Company uses the market information as much as possible and uses the Company-specific information as little as
possible.It should be noted that part of the information used in the valuation model requires management’s
estimation (such as discount rate, target exchange rate volatility, etc.).The Company regularly reviews the above
estimates and assumptions and makes adjustments if necessary.
(6) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have
some uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires
needs to get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially
estimated amount, the difference shall have an impact on its current and deferred income taxes during the final
identification period.
33. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
√ Applicable □ Not applicable
In accordance with the relevant requirements of the Accounting Standards for Business Enterprises No.
14-Revenue (CK [2017] No. 22) issued by the Ministry of Finance on July 5, 2017, the company made
corresponding changes and adjustments to the new revenue standards. The details are as follows:
1. Incorporate the current revenue and construction contract standards into a unified revenue recognition model;
2. Use the transfer of control rights instead of the transfer of risk rewards as the criterion for determining the point
in time of revenue recognition;
3. Identify each individual performance obligation contained in the contract and recognize revenue separately
when performing it;
4. Provide clearer guidance for the accounting treatment of contracts that include multiple transaction
arrangements;
5. Regulations are explicitly stipulated for the revenue recognition and measurement of certain specific
transactions (or events).
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new financial
instrument standards, new revenue standards and new leasing standards since 2020
Applicable
Whether need to adjust the items in balance sheet at the beginning of the year
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√Yes □No
Consolidate balance sheet
In RMB
Item 2019-12-31 2020-01-01 Adjustments
Current assets:
Monetary funds 1,596,893,711.87 1,596,893,711.87
Settlement provisions
Capital lent
Transaction financial asset 3,940,885,674.32 3,940,885,674.32
Derivative financial assets
Note receivable 1,812,141,371.94 1,812,141,371.94
Account receivable 2,310,666,475.89 2,406,712,915.10 96,046,439.21
Receivables financing 23,873,317.86 23,873,317.86
Account paid in advance 139,241,917.78 139,241,917.78
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivables 43,730,023.31 43,730,023.31
Including: Interest receivable 655,052.98 655,052.98
Dividend receivable 1,070,000.00 1,070,000.00
Buying back the sale of financial assets
Inventory 2,418,744,835.82 2,418,744,835.82
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 1,012,055,605.74 1,012,055,605.74
Total current assets 13,298,232,934.53 13,394,279,373.74 96,046,439.21
Non-current assets:
Loans and payments on behalf
Creditors’ investment
Other creditors’ investment
Long-term account receivables
Long-term equity investment 5,322,405,953.35 5,322,405,953.35
Other equity instrument investment 285,048,000.00 285,048,000.00
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Other non-current financial assets 1,043,589,987.43 1,043,589,987.43
Investment real estate 22,410,511.87 22,410,511.87
Fixed assets 2,845,176,078.20 2,845,176,078.20
Construction in progress 247,857,777.25 247,857,777.25
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets 430,594,372.12 430,594,372.12
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 18,536,000.25 18,536,000.25
Deferred income tax assets 212,476,501.54 212,476,501.54
Other non-current assets 230,235,982.45 230,235,982.45
Total non-current assets 10,660,115,251.25 10,660,115,251.25
Total assets 23,958,348,185.78 24,054,394,624.99 96,046,439.21
Current liabilities:
Short-term borrowings 312,153,969.81 312,153,969.81
Loan from central bank
Capital borrowed
Transaction financial liability
Derivative financial liability
Note payable 1,745,218,439.52 1,745,218,439.52
Account payable 3,312,254,229.84 3,312,254,229.84
Accounts received in advance 113,737,432.61 1,493,602.00 -112,243,830.61
Contractual liability 112,243,830.61 112,243,830.61
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Employee compensation payable 314,343,737.66 314,343,737.66
Taxes payable 129,538,411.86 129,538,411.86
Other account payable 65,266,262.39 65,266,262.39
Including: Interest payable
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Dividend payable
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities 96,046,439.21 96,046,439.21
Total current liabilities 5,992,512,483.69 6,088,558,922.90 96,046,439.21
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 35,108,263.11 35,108,263.11
Long-term employee compensation payable 58,392,053.61 58,392,053.61
Accrual liabilities
Deferred income 365,116,022.98 365,116,022.98
Deferred income tax liabilities 22,566,051.72 22,566,051.72
Other non-current liabilities
Total non-current liabilities 481,182,391.42 481,182,391.42
Total liabilities 6,473,694,875.11 6,569,741,314.32 96,046,439.21
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,391,527,806.33 3,391,527,806.33
Less: Inventory shares
Other comprehensive income 134,871.67 134,871.67
Reasonable reserve 3,247,757.06 3,247,757.06
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
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Retained profit 12,076,443,635.56 12,076,443,635.56
Total owners’ equity attributable to parent
16,990,405,136.62 16,990,405,136.62
company
Minority interests 494,248,174.05 494,248,174.05
Total owners’ equity 17,484,653,310.67 17,484,653,310.67
Total liabilities and owner’s equity 23,958,348,185.78 24,054,394,624.99 96,046,439.21
Balance sheet of parent company
In RMB
Item 2019-12-31 2020-01-01 Adjustments
Current assets:
Monetary funds 965,770,877.82 965,770,877.82
Transaction financial asset 3,758,789,072.68 3,758,789,072.68
Derivative financial assets
Note receivable 202,403,993.13 202,403,993.13
Account receivable 768,500,929.93 836,014,968.93 67,514,039.00
Receivables financing
Account paid in advance 89,116,730.45 89,116,730.45
Other account receivables 250,014,956.74 250,014,956.74
Including: Interest receivable 804,929.68 804,929.68
Dividend receivable 1,070,000.00 1,070,000.00
Inventory 565,144,234.49 565,144,234.49
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 938,616,881.51 938,616,881.51
Total current assets 7,538,357,676.75 7,605,871,715.75 67,514,039.00
Non-current assets:
Creditors’ investment
Other creditors’ investment
Long-term account receivables
Long-term equity investment 6,331,363,630.04 6,331,363,630.04
Other equity instrument investment 209,108,000.00 209,108,000.00
Other non-current financial assets 1,043,589,987.43 1,043,589,987.43
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Investment real estate
Fixed assets 1,646,333,216.50 1,646,333,216.50
Construction in progress 136,573,912.28 136,573,912.28
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets 203,663,423.60 203,663,423.60
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 105,137,877.84 105,137,877.84
Other non-current assets 172,646,721.05 172,646,721.05
Total non-current assets 9,848,416,768.74 9,848,416,768.74
Total assets 17,386,774,445.49 17,454,288,484.49 67,514,039.00
Current liabilities:
Short-term borrowings 116,126,459.33 116,126,459.33
Transaction financial liability
Derivative financial liability
Note payable 284,054,137.00 284,054,137.00
Account payable 930,273,146.35 930,273,146.35
Accounts received in advance 12,010,730.30 -12,010,730.30
Contract liability 12,010,730.30 12,010,730.30
Employee compensation payable 213,626,754.45 213,626,754.45
Taxes payable 56,540,307.59 56,540,307.59
Other account payable 11,976,576.21 11,976,576.21
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities 67,514,039.00 67,514,039.00
Total current liabilities 1,624,608,111.23 1,692,122,150.23 67,514,039.00
Non-current liabilities:
Long-term borrowings
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Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long-term employee compensation payable 50,058,386.76 50,058,386.76
Accrual liabilities
Deferred income 322,971,778.82 322,971,778.82
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 373,030,165.58 373,030,165.58
Total liabilities 1,997,638,276.81 2,065,152,315.81 67,514,039.00
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,488,221,286.39 3,488,221,286.39
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 10,381,863,816.29 10,381,863,816.29
Total owners’ equity 15,389,136,168.68 15,389,136,168.68
Total liabilities and owner’s equity 17,386,774,445.49 17,454,288,484.49 67,514,039.00
(4) Retrospective adjustment of early comparison data description when initially implemented the new
financial instrument standards and new leasing standards since 2020
□ Applicable √ Not applicable
34. Other
Nil
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VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
16%, 13%, 6%, Collection rate 5%, 25%(IRD), rate for exported
VAT Taxable income commodities is stipulated by the state with declaration of export
tax rebate, rate of tax may be “exempted, credited and refunded”
City maintaining & construction tax Turnover tax payable 7%
Corporation income tax Taxable income 25%, 22%, 15%
Educational surtax Turnover tax payable 5%, 4.5%
Disclose reasons for different taxpaying body
Income tax
Taxpaying body
rate
Weifu Mashan, Weifu Chang’an, Weifu International Trade,, Weifu Schmidt, Weifu Leader (Wuhan), Weifu
25%
Leader(Nanchang), Weifu Electronic Drive
The Company, Weifu Jinning, Weifu Leader, Weifu Tianli, Weifu Autocam, Weifu Leader(Chongqing) 15%
SPV、IRD 22%
2. Tax preference
On 17 November 2017, the Company got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732000007. Corporate income tax of the
Company shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 27 December 2017, Weifu Jinning got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732004010. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Leader got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001828. Corporate income tax of the
Weifu Leader shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 29 November 2017, Weifu Tianli got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Bureau of Ningbo, Department of Finance of Ningbo, Ningbo Office, SAT and Ningbo, Zhejiang
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Provincial Local Taxation Bureau, certificate No.: GR201733100363. Corporate income tax of the Weifu Tianli
shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Autocam got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001043. Corporate income tax of the
Weifu Autocam shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
The State Administration of Taxation announced the first item of Announcement of the State Administration of
Taxation on the Enterprise Income Tax Issues Concerning the Implementation of the Western Development
Strategy No. 12 of 2012 that from January 1, 2011 to December 31, 2020, the enterprises located in the west
region and mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industriesin
the Western Region, and whose main business income accounting for more than 70% of the total income of the
enterprise in the current year can pay the corporate income tax at the tax rate of 15%. In 2018, Weifu Leader
(Chongqing) paid its corporate income tax at the tax rate of 15%.
3. Other
Nil
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VII. Notes to major items in consolidated financial statements
1. Monetary funds
In RMB/CNY
Item Ending balance Opening balance
Cash on hand 76,486.27 93,165.33
Cash in bank 2,479,078,002.60 1,531,405,488.52
Other monetary funds 84,993,120.71 65,395,058.02
Total 2,564,147,609.58 1,596,893,711.87
Including: Total amount saving aboard 15,183,975.35 31,442,836.86
Other notes
The ending balance of other monetary funds includes a bank acceptance bill deposit of RMB 32,786,262.96, a stock repurchase
amount of RMB 50,000,000.00, and a frozen dividend of RMB 2,206,857.75.The frozen dividend of 2,206,857.75Yuan represents
the part of dividends distributed by SDEC(stock code:600841) and Miracle Automation (stock code:002009) for 2017to 2019 held by
the Company as Transaction financial assets. According to the notices numbered Yue 03MC[2016]2490 and Yue 03MC[2016]2492
served by Guangdong Shenzhen Intermediate People’s Court, these dividends were frozen.
2. Transaction financial assets
In RMB/CNY
Item Ending balance Opening balance
Financial assets measured by fair value and
with variation reckoned into current 3,186,262,183.13 3,940,885,674.32
gains/losses
Including:
Including:SDEC stock 90,523,572.00 91,822,332.00
Miracle Automation stock 36,125,700.00 36,031,500.00
financial products 3,059,612,911.13 3,813,031,842.32
Including:
Total 3,186,262,183.13 3,940,885,674.32
3. Note receivable
(1) Classification of notes receivable
In RMB/CNY
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Item Ending balance Opening balance
Bank acceptance bill 832,078,337.35 1,755,135,175.42
Trade acceptance bill 153,852,568.26 57,006,196.52
Total 985,930,905.61 1,812,141,371.94
In RMB/CNY
Ending balance Opening balance
Bad debt Bad debt
Book balance Book balance
reserve reserve
Category Book Book
Accr Accru
Amo value Amou value
Amount Ratio ual Amount Ratio al
unt nt
ratio ratio
Note receivable with
985,930,9 1,812,141
bad debt provision 985,930,905.61 100.00% 1,812,141,371.94 100.00%
05.61 ,371.94
accrual on portfolio
Including:
Portfolio 1: bank 832,078,3 1,755,135
832,078,337.35 84.40% 1,755,135,175.42 96.85%
acceptance bill 37.35 ,175.42
Portfolio 2: trade 153,852,5 57,006,19
153,852,568.26 15.60% 57,006,196.52 3.15%
acceptance bill 68.26 6.52
985,930,9 1,812,141
Total 985,930,905.61 100.00% 1,812,141,371.94 100.00%
05.61 ,371.94
Bad debt provision accrual on a single basis: nil
Bad debt provision accrual on portfolio: nil
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
□ Applicable √ Not applicable
(3) Notes receivable already pledged by the Company at the end of the period
In RMB/CNY
Item Amount pledge at period-end
Bank acceptance bill 632,125,894.23
Trade acceptance bill 13,421,185.00
Total 645,547,079.23
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(4) Notes endorsement or discount and undue on balance sheet date
In RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 371,597,001.62
Trade acceptance bill 26,771,185.00
Total 398,368,186.62
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB/CNY
Item Amount transfer to account receivable at period-end
Trade acceptance bill 5,300,000.00
Total 5,300,000.00
Other explanation
The trade acceptance bill that the company transferred to the accounts receivable due to in 2018 the failure of the
drawer to perform the agreementat the end of the period were the bills of the subsidiaries controlled by Baota
Petrochemical Group Co., Ltd. and the bills accepted by Baota Petrochemical Group Finance Co., Ltd. (hereinafter
referred to as “BD bills”); In 2018, the amount transferred to account receivable was 7 million yuan, and 1.7
million yuan has been recovered in 2019.
(6) Note receivable actually written-off in the period
Nil
4. Account receivable
(1) Classification of account receivable
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
with bad debt 61,818,8 61,818,8 64,818,80 64,818,80
1.64% 100.00% 2.60% 100.00%
provision accrual on 02.14 02.14 2.14 2.14
a single basis
Including:
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Account receivable
with bad debt 3,703,82 29,669,9 3,674,151 2,429,517 22,804,87 2,406,712,9
98.36% 0.80% 97.40% 0.94%
provision accrual on 1,632.46 97.13 ,635.33 ,785.18 0.08 15.10
portfolio
Including:
3,765,64 91,488,7 3,674,151 2,494,336 87,623,67 2,406,712,9
Total 100.00% 2.43% 100.00% 3.51%
0,434.60 99.27 ,635.33 ,587.32 2.22 15.10
Bad debt provision accrual on single basis: RMB 61,818,802.14
In RMB/CNY
Ending balance
Name Accrual
Book balance Bad debt reserve Accrual causes
ratio
Hubei Meiyang Auto Industry Co., Ltd. 20,139,669.45 20,139,669.45 100.00% Have difficulty in collection
Hunan Leopaard Auto Co., Ltd. 8,989,202.97 8,989,202.97 100.00% Have difficulty in collection
Linyi Zotye Auto Parts Manufacturing Co., Ltd. 6,193,466.77 6,193,466.77 100.00% Have difficulty in collection
Changchun FAW Sihuan Engine Manufacturing
5,852,415.65 5,852,415.65 100.00% Have difficulty in collection
Co., Ltd.
BD bills 5,300,000.00 5,300,000.00 100.00% Have difficulty in collection
Tongling Ruineng Purchasing Co., Ltd. 4,199,674.50 4,199,674.50 100.00% Have difficulty in collection
Zhejiang Zotye Auto Manufacturing Co., Ltd. 3,217,763.27 3,217,763.27 100.00% Have difficulty in collection
Jiangsu Kawei Auto Industrial Group Co., Ltd. 1,932,476.26 1,932,476.26 100.00% Have difficulty in collection
Wuxi Kipor Machinery Co., Ltd 1,220,384.74 1,220,384.74 100.00% Have difficulty in collection
Fujian Zhao’an Country Minyue Bianjie
1,111,007.12 1,111,007.12 100.00% Have difficulty in collection
Agricultural Machinery Auto Parts Co., Ltd.
Other custom 3,662,741.41 3,662,741.41 100.00% Have difficulty in collection
Total 61,818,802.14 61,818,802.14 -- --
Bad debt provision accrual on portfolio: RMB 29,669,997.13
In RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Within 6 months 3,538,196,231.24 0.00
6 months to one year 116,206,384.18 11,620,638.42 10.00%
1-2 years 33,160,913.66 6,632,182.73 20.00%
2-3 years 8,068,212.31 3,227,284.91 40.00%
121
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Over 3 years 8,189,891.07 8,189,891.07 100.00%
Total 3,703,821,632.46 29,669,997.13 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Book balance
Within one year (One year included) 3,659,886,447.14
Including: within 6 months 3,542,172,732.40
6 months to one year 117,713,714.74
1-2 years 73,223,880.48
2-3 years 21,499,873.00
Over 3 years 11,030,233.98
3-4 years 11,030,233.98
Total 3,765,640,434.60
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Ending balance
Accrual Collected or reversal Written-off Other
Bad debt
87,623,672.22 12,538,618.35 8,673,491.30 91,488,799.27
provision
Total 87,623,672.22 12,538,618.35 8,673,491.30 91,488,799.27
Important bad debt provision collected or switch back:
In RMB/CNY
Enterprise Amount collected or switch back Collection way
Hunan Leopard Automobile Co., Ltd. 3,000,000.00 Cash
Total 3,000,000.00 --
(3) Account receivable actual charge off in the Period
Nil
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(4) Top 5 receivables at ending balance by arrears party
In RMB/CNY
Ending balance of Ratio in total ending balance of Ending balance of bad debt
Name
account receivable account receivables reserve
Bosch Automobile Diesel System Co., Ltd. 712,061,865.41 18.91% 868.90
Custom 1 308,560,656.96 8.19% 758,123.22
Custom 2 214,144,964.18 5.69% 1,097.47
Custom 3 174,254,129.96 4.63% 5,152,919.37
Custom 4 166,220,032.40 4.41% 369,367.22
Total 1,575,241,648.91 41.83%
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
5. Receivables financing
In RMB/CNY
Item Ending balance Opening balance
Note receivable 756,743,779.54 23,873,317.86
Including: bank acceptance bill 756,743,779.54 23,873,317.86
Total 756,743,779.54 23,873,317.86
Increase and decrease in current period and changes in fair value of receivables financing
□ Applicable √ Not applicable
If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss,
please refer to the disclosure method of other account receivables in aspect of impairment provision:
□ Applicable √ Not applicable
6. Account paid in advance
(1) Account age of account paid in advance
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 204,078,981.25 91.01% 118,030,952.47 84.77%
1-2 years 17,421,411.19 7.77% 19,644,713.49 14.11%
2-3 years 1,847,381.49 0.82% 683,098.16 0.49%
Over 3 years 896,137.77 0.40% 883,153.66 0.63%
Total 224,243,911.70 -- 139,241,917.78 --
Explanation on reasons of failure to settle on important advance payment with age over one year:
Nil
(2) Top 5 account paid in advance at ending balance by prepayment object
Total year-end balance of top five account paid in advance by prepayment object amounted to 121,104,997.78 Yuan,
takes 54.01 percent of the total advance payment at year-end.
7. Other account receivables
In RMB/CNY
Item Ending balance Opening balance
Interest receivable 2,091,107.78 655,052.98
Dividend receivable 1,092,040,579.49 1,070,000.00
Other account receivables 34,981,395.85 42,004,970.33
Total 1,129,113,083.12 43,730,023.31
(1) Interest receivable
1) Category of interest receivable
In RMB/CNY
Item Ending balance Opening balance
Interest of fund occupation 2,091,107.78 655,052.98
Total 2,091,107.78 655,052.98
2) Significant overdue interest
Nil
124
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
In RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
Weifu Precision Machinery Manufacturing Co., Ltd. 1,070,000.00
Bosch Automobile Diesel System Co., Ltd. 900,840,579.49
Zhonglian Automobile Electronic Co., Ltd. 191,200,000.00
Total 1,092,040,579.49 1,070,000.00
2) Important dividend receivable with account age over one year
Nil
(3) Other account receivables
1) Other account receivables classification by nature
In RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds from units 37,906,531.13 35,441,483.88
Equity disposal fund of Protean Holdings Corp. 10,654,092.89
Cash deposit 2,797,435.00 3,625,917.96
Staff loans and petty cash 2,947,266.36 1,346,241.81
Other 450,558.75 300,206.93
Total 44,101,791.24 51,367,943.47
2) Accrual of bad debt provision
In RMB/CNY
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt reserve Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
125
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Balance on Jan. 1, 2020 7,848,301.94 1,514,671.20 9,362,973.14
Balance of Jan. 1, 2020
—— —— —— ——
in the period
Current accrual 1,352,021.01 1,352,021.01
Current reversal 1,525,891.90 68,706.86 1,594,598.76
Balance on Jun. 30, 2020 7,674,431.05 1,445,964.34 9,120,395.39
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Book balance
Within one year (One year included) 15,141,754.76
Within 6 months 15,109,948.53
6 months to one year 31,806.23
1-2 years 24,798,127.14
2-3 years 7,200.00
Over 3 years 4,154,709.34
3-4 years 4,154,709.34
Total 44,101,791.24
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Ending balance
Accrual Collected or reversal Written-off Other
Bad debt provision 9,362,973.14 1,352,021.01 1,594,598.76 9,120,395.39
Total 9,362,973.14 1,352,021.01 1,594,598.76 9,120,395.39
Including the important bad debt provision switch back or collected in the period:
In RMB/CNY
Name Reversal or recovery Recovery method
Robert Bosch Company 1,520,000.00 Cash
Total 1,520,000.00 --
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
4) Other receivables actually written-off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
In RMB/CNY
Ratio in total ending
Ending balance of
Enterprise Nature Ending balance Account age balance of other
bad debt reserve
receivables
Troowin Power System Technology Intercourse funds
24,000,000.00 1-2 years 54.42% 4,800,000.00
Co., Ltd. of unit
Ningbo Jiangbei High-Tech
Industry Park Development Performance bond 1,767,000.00 Over 3 years 4.01% 1,767,000.00
Construction Co., Ltd.
Intercourse funds
American HESS Company 1,445,964.34 Over 3 years 3.28% 1,445,964.34
of unit
Nanjing Property Service Guidance Intercourse funds Within 6
1,301,567.91 2.95% 0.00
Center of unit months
China Combustion City Gas
deposit 575,640.00 Over 3 years 1.31% 575,640.00
Development Co., Ltd.
Total -- 29,090,172.25 -- 65.96% 8,588,604.34
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
8. Inventory
(1) Category of inventory
In RMB/CNY
127
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Ending balance Opening balance
Inventory Inventory
depreciation depreciation
reserve or reserve or
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Raw materials 393,084,028.86 76,901,935.24 316,182,093.62 495,927,678.66 81,069,128.03 414,858,550.63
Goods in process 314,390,207.52 9,632,421.12 304,757,786.40 243,525,007.82 13,963,866.92 229,561,140.90
Finished goods 1,220,723,800.47 170,924,933.72 1,049,798,866.75 1,937,368,868.87 163,043,724.58 1,774,325,144.29
Total 1,928,198,036.85 257,459,290.08 1,670,738,746.77 2,676,821,555.35 258,076,719.53 2,418,744,835.82
(2) Inventory depreciation reserve and provision for impairment of contract performance costs
In RMB/CNY
Current increased Current decreased
Item Opening balance Ending balance
Accrual Other Switch back or write-off Other
Raw materials 81,069,128.03 4,148,326.81 8,315,519.60 76,901,935.24
Goods in process 13,963,866.92 419,958.18 4,751,403.98 9,632,421.12
Finished goods 163,043,724.58 48,239,624.48 40,358,415.34 170,924,933.72
Total 258,076,719.53 52,807,909.47 53,425,338.92 257,459,290.08
① Net realizable value of the inventory refers to: during the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed, sales price estimated and relevant
taxes.
② Accrual basis for inventory depreciation reserve:
Accrual basis for inventory impairment
Cash on hand Specific basis for recognition
provision
The materials sold due to finished goods Results from the estimated sale price of such inventory less the
Materials in stock manufactured, its net realizable value is cost what will happen, estimated sales expenses and relevant
lower than the book value taxes till the goods completed
The goods in process sold due to finished Results from the estimated sale price of such inventory less the
Goods in process goods manufactured, its net realizable value cost what will happen, estimated sales expenses and relevant
is lower than the book value taxes till the goods completed
Accrual basis for inventory impairment Specific basis for recognition
Cash on hand
provision
128
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③ Reasons of write-off for inventory falling price reserves:
Cash on hand Reasons of write-off
Materials in stock Used for production and the finished goods are realized sales
Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
Finished goods Sales in the Period
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without settlement from construction contract at period-end
Nil
9. Other current assets
In RMB/CNY
Item Ending balance Opening balance
Structured deposits 525,000,000.00 965,000,000.00
Receivable export tax rebates 3,791,825.38 5,383,485.34
VAT refund receivable 1,648,669.86
Prepaid taxes and VAT retained 18,165,659.42 36,067,254.77
Input tax to be deducted and certification 188,191.44 764,895.21
Other 331,459.55 3,191,300.56
Total 547,477,135.79 1,012,055,605.74
10. Long-term equity investments
In RMB/CNY
Current changes (+, -) Ending
Investment Other Cash Ending balance
The Opening Additi
Capital gain/loss comprehe Other dividend or Impair balance of
invested balance onal (book depreciati
entity (book value) invest reducti recognized nsive equity profit ment Other
on under income change announced accrual value) on
ment reserves
equity adjustment to issued
I. Joint venture
Wuxi Weifu
Environmen 578,366,832. 53,821,724. 632,188,5
t Catalyst 27 29 56.56
Co., Ltd.
129
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578,366,832. 53,821,724. 632,188,5
Subtotal
27 29 56.56
II. Associated enterprise
Bosch
Automobile
3,417,092,13 600,783,01 1,801,681,1 2,216,193
Diesel
6.65 3.31 59.00 ,990.96
System Co.,
Ltd.
Zhonglian
Automobile 1,261,232,63 126,848,34 331,400,00 1,056,680
Electronic 5.30 0.16 0.00 ,975.46
Co., Ltd.
Weifu
Precision
61,536,602.8 7,644,513.8 69,181,11
Machinery
2 0 6.62
Manufacturi
ng Co., Ltd.
Shinwell
Automobile
-732,249.4 3,445,496
Tech. 4,177,746.31
2 .89
(Wuxi) Co.,
Ltd.
4,744,039,12 734,543,61 2,133,081,1 3,345,501
Subtotal
1.08 7.85 59.00 ,579.93
5,322,405,95 788,365,34 2,133,081,1 3,977,690
Total
3.35 2.14 59.00 ,136.49
11. Other equity instrument investment
In RMB/CNY
Item Ending balance Opening balance
Wuxi Xidong Science & Technology Industrial Park 5,000,000.00 5,000,000.00
Beijing Zhike Industry Investment Holding Group Co., Ltd. 75,940,000.00 75,940,000.00
Rare earth Catalysis Innovation Research Institute (Dongying) Co., Ltd. 4,108,000.00 4,108,000.00
Wuxi Xichang Microchip Semi-Conductor 200,000,000.00 200,000,000.00
Total 285,048,000.00 285,048,000.00
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12. Other non-current financial assets
In RMB/CNY
Item Ending balance Opening balance
Transaction financial assets holding for over one year 1,680,000,000.00 1,000,246,703.43
Equity instrument investment 43,343,284.00 43,343,284.00
Total 1,723,343,284.00 1,043,589,987.43
13. Investment real estate
(1) Investment real estate measured by cost
√ Applicable □ Not applicable
In RMB/CNY
Item House and Building Land use right Construction in progress Total
I. original book value
1.Opening balance 65,524,052.61 65,524,052.61
2.Current increased
(1) outsourcing
(2) Inventory\fixed
assets\construction in process transfer-in
(3) increased by combination
3.Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance 65,524,052.61 65,524,052.61
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 43,113,540.74 43,113,540.74
2.Current increased 761,915.13 761,915.13
(1) accrual or amortization 761,915.13 761,915.13
3.Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance 43,875,455.87 43,875,455.87
III. Depreciation reserves
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1.Opening balance
2.Current increased
(1) accrual
3. Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance
IV. Book value
1.Ending Book value 21,648,596.74 21,648,596.74
2.Opening Book value 22,410,511.87 22,410,511.87
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
Nil
14. Fixed assets
In RMB/CNY
Item Ending balance Opening balance
Fixed assets 2,875,000,573.89 2,845,176,078.20
Total 2,875,000,573.89 2,845,176,078.20
(1) Fixed assets
In RMB/CNY
House and Machinery Transportation Electronic and other
Item Total
Building equipment equipment equipment
I. original book value:
1.Opening balance 1,577,727,234.03 2,892,177,324.22 33,031,605.81 518,844,612.28 5,021,780,776.34
2.Current increased 16,580,464.39 156,035,593.57 54,194.02 59,652,213.15 232,322,465.13
(1) Purchase 1,019,898.68 1,019,898.68
(2) Construction in
16,580,464.39 156,035,593.57 54,194.02 58,632,314.47 231,302,566.45
progress transfer-in
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(3) increased by
combination
3.Current decreased 4,451,607.84 33,908,468.53 531,811.45 9,601,849.61 48,493,737.43
(1) disposal or scrapping 4,451,607.84 33,908,468.53 531,811.45 9,601,849.61 48,493,737.43
4.Ending balance 1,589,856,090.58 3,014,304,449.26 32,553,988.38 568,894,975.82 5,205,609,504.04
II. Accumulated depreciation
1.Opening balance 373,468,771.98 1,466,289,636.27 24,572,383.79 259,549,999.99 2,123,880,792.03
2.Current increased 22,964,995.05 96,438,233.50 741,420.15 49,391,915.07 169,536,563.77
(1) accrual 22,964,995.05 96,438,233.50 741,420.15 49,391,915.07 169,536,563.77
3.Current decreased 10,373,103.90 483,657.79 4,595,144.28 15,451,905.97
(1) disposal or scrapping 10,373,103.90 483,657.79 4,595,144.28 15,451,905.97
4.Ending balance 396,433,767.03 1,552,354,765.87 24,830,146.15 304,346,770.78 2,277,965,449.83
III. Depreciation reserves
1.Opening balance 45,370,341.62 73,319.90 7,280,244.59 52,723,906.11
2.Current increased
(1) accrual
3.Current decreased 80,425.79 80,425.79
(1) disposal or scrapping 80,425.79 80,425.79
4.Ending balance 45,289,915.83 73,319.90 7,280,244.59 52,643,480.32
IV. Book value
1.Ending Book value 1,193,422,323.55 1,416,659,767.56 7,650,522.33 257,267,960.45 2,875,000,573.89
2.Opening Book value 1,204,258,462.05 1,380,517,346.33 8,385,902.12 252,014,367.70 2,845,176,078.20
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by financing lease
Nil
(4) Fixed assets acquired by operating lease
Nil
(5) Fixed assets without property certification held
In RMB/CNY
133
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Item Book value Reasons for without the property certification
Plant and office building of Weifu Chang’an 34,963,912.96 Still in process of relevant property procedures
(6) Disposal of fixed assets
Nil
15. Construction in progress
In RMB/CNY
Item Ending balance Opening balance
Construction in progress 253,735,407.77 247,857,777.25
Total 253,735,407.77 247,857,777.25
(1) Construction in progress
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Technical transformation
85,075,711.80 85,075,711.80 98,032,515.22 98,032,515.22
of parent company
Technical transformation
47,416,945.57 47,416,945.57 44,412,832.62 44,412,832.62
of Weifu Autocam
Technical transformation
26,198,395.28 26,198,395.28 25,051,156.03 25,051,156.03
of Weifu Leader
Other item 95,044,355.12 95,044,355.12 80,361,273.38 80,361,273.38
Total 253,735,407.77 253,735,407.77 247,857,777.25 247,857,777.25
(2) Changes of major projects under construction
In RMB/CNY
134
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
includin
Accumu Intere
Proportio g:
Fixed lated st
Other n of interest
Bu assets amount capita
Opening Current decreased Ending project Prog capitaliz Source
Item dge transfer-in of lizatio
balance increased in the balance investme ress ed offunds
t in the interest n rate
Period nt in amount
Period capitaliz of the
budget of the
ation year
year
Technical
transformation 98,032,515 160,045,12 173,001,93 85,075,711
Other
of parent .22 7.43 0.85 .80
company
Technical
transformation 44,412,832 25,534,724 22,530,611 47,416,945
Other
of Weifu .62 .10 .15 .57
Autocam
Technical
transformation 25,051,156 17,978,696 16,831,457 26,198,395
Other
of Weifu .03 .63 .38 .28
Leader
167,496,50 203,558,54 212,363,99 158,691,05
Total -- -- --
3.87 8.16 9.38 2.65
(3) The provision for impairment of construction projects
Nil
(4) Engineer material
Nil
16. Intangible assets
(1) Intangible assets
In RMB/CNY
Non-patent Computer Trademark and
Item Land use right Patent Total
technology software trademark license
I. original book value
1.Opening balance 380,986,757.11 105,086,673.46 81,823,603.48 41,597,126.47 609,494,160.52
2.Current increased 30,091.08 0.00 0.00 5,763,026.69 0.00 5,793,117.77
135
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(1) Purchase 30,091.08 5,763,026.69 5,793,117.77
(2) internal R&D
(3) increased by
combination
3.Current decreased
(1) disposal
4.Ending balance 381,016,848.19 0.00 105,086,673.46 87,586,630.17 41,597,126.47 615,287,278.29
II. accumulated
amortization
1.Opening balance 88,200,675.16 9,823,965.21 54,519,248.03 9,709,000.00 162,252,888.40
2.Current increased 4,173,215.03 0.00 5,235,571.44 8,447,242.60 0.00 17,856,029.07
(1) accrual 4,173,215.03 5,235,571.44 8,447,242.60 17,856,029.07
3.Current decreased
(1) disposal
4.Conversion of
foreign currency 1,604,658.44 1,604,658.44
financial statement
5.Ending balance 92,373,890.19 0.00 16,664,195.09 62,966,490.63 9,709,000.00 181,713,575.91
III. Depreciation
reserves
1.Opening balance 16,646,900.00 16,646,900.00
2.Current increased
(1) accrual
3.Current decreased
(1) disposal
4.Ending balance 16,646,900.00 16,646,900.00
IV. Book value
1.Ending Book value 288,642,958.00 0.00 88,422,478.37 24,620,139.54 15,241,226.47 416,926,802.38
2.Opening Book value 292,786,081.95 0.00 95,262,708.25 27,304,355.45 15,241,226.47 430,594,372.12
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0%.
(2) Land use right without property certification held
Nil
136
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
17. Goodwill
(1) Original book value of goodwill
In RMB/CNY
Current increased Current decreased
The invested entity or
Opening balance Formed by business Ending balance
matters forming goodwill Disposal
combination
Weifu Tianli 1,784,086.79 1,784,086.79
Total 1,784,086.79 1,784,086.79
(2) Goodwill depreciation reserves
Nil
Information about the asset group or combination of asset groups where the goodwill is located
In 2010, the company controlled and merged Weifu Tianli by means of cash capital increase, and the goodwill was the part of the
merger cost greater than the fair value of Weifu Tianli's identifiable net assets.
18. Long-term deferred expenses
In RMB/CNY
Item Opening balance Current increased Amortized in the Period Other decrease Ending balance
Remodeling costs etc. 18,536,000.25 5,851,016.31 2,216,221.26 22,170,795.30
Total 18,536,000.25 5,851,016.31 2,216,221.26 22,170,795.30
19. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB/CNY
Ending balance Opening balance
Item Deductible Deferred income tax Deductible Deferred income tax
temporary difference assets temporary difference assets
Bad debt reserve 98,150,512.49 14,890,245.91 94,527,571.76 14,302,572.39
Inventory depreciation reserve 244,900,480.12 39,024,354.66 237,900,564.04 38,773,864.59
Depreciation reserves of fixed assets 19,117,108.21 3,083,687.26 19,197,534.00 3,095,824.19
Depreciation reserves of intangible assets 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Other equity instrument investment 10,000,000.00 1,500,000.00 10,000,000.00 1,500,000.00
137
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Change of fair value of transaction
17,721,963.00 2,658,294.45 16,517,403.00 2,477,610.45
financial asset
Deferred income 341,129,475.72 51,573,421.36 362,993,022.12 54,664,953.32
Internal un-realized profit 41,257,493.69 6,365,502.03 22,481,656.04 4,568,190.39
Payable salary, accrued expenses etc. 752,208,481.53 115,559,690.71 622,348,855.94 96,720,511.00
Depreciation assets, amortization
39,437,881.45 6,311,625.21 49,220,776.87 7,779,059.56
difference
Deductible loss of subsidiary 21,714,524.19 4,101,171.83 21,714,524.19 4,101,171.83
Total 1,602,284,820.40 247,565,028.42 1,473,548,807.96 230,480,792.72
(2) Deferred income tax liabilities that are not offset
In RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation increment for combination
11,641,299.47 1,746,194.96 12,011,409.46 1,801,711.40
not under the same control
The difference between the fair value and
taxation basis of IRD assets in a merger not 87,722,454.97 19,298,940.09 94,383,365.10 20,764,340.32
under the same control
Change of fair value of transaction financial
21,427,689.29 3,214,153.41 18,231,842.32 2,734,776.35
asset
Accelerated depreciation of fixed assets 98,019,924.32 15,269,514.83 98,019,924.32 15,269,514.83
Total 218,811,368.05 39,528,803.29 222,646,541.20 40,570,342.90
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB/CNY
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax assets -18,483,668.24 229,081,360.18 -18,004,291.18 212,476,501.54
Deferred income tax liabilities -18,483,668.24 21,045,135.05 -18,004,291.18 22,566,051.72
138
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(4) Details of unrecognized deferred income tax assets
In RMB/CNY
Item Ending balance Opening balance
Bad debt reserve 2,458,682.17 2,459,073.60
Inventory depreciation reserve 12,558,809.96 20,176,155.49
Loss from subsidiary 90,708,868.39 103,734,801.82
Depreciation reserves of fixed assets 33,526,372.11 33,526,372.11
Other equity instrument investment 46,600,000.00 48,633,106.95
Total 185,852,732.63 208,529,509.97
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB/CNY
Maturity year Ending amount Opening amount Note
2020 18,809,345.29 23,567,088.89 Subsidiaries have operating losses
2021 32,724,018.08 43,218,245.04 Subsidiaries have operating losses
2022 9,891,309.24 9,901,777.74 Subsidiaries have operating losses
2023 7,882,026.39 7,882,026.39 Subsidiaries have operating losses
2024 19,165,663.76 19,165,663.76 Subsidiaries have operating losses
2025 2,236,505.63 Subsidiaries have operating losses
Total 90,708,868.39 103,734,801.82 --
20. Other non-current assets
In RMB/CNY
Ending balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Engineering equipment
210,102,212.32 210,102,212.32 230,235,982.45 230,235,982.45
paid in advance
Total 210,102,212.32 210,102,212.32 230,235,982.45 230,235,982.45
21. Short-term borrowings
(1) Category of short-term borrowings
In RMB/CNY
139
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Item Ending balance Opening balance
Credit loan 327,932,554.71 305,835,808.28
Bill financing 5,976,347.95
Accrued interest 376,183.29 341,813.58
Total 328,308,738.00 312,153,969.81
(2) Overdue short-term loans without payment
Nil
22. Note payable
In RMB/CNY
Category Ending balance Opening balance
Bank acceptance bill 1,339,329,488.99 1,745,218,439.52
Total 1,339,329,488.99 1,745,218,439.52
Notes expired at year-end without paid was 0.00 Yuan.
23. Account payable
(1) Account payable
In RMB/CNY
Item Ending balance Opening balance
Within 1 year 4,083,158,782.01 3,214,392,402.81
1-2 years 84,295,174.53 74,021,217.00
2-3 years 10,362,261.24 5,854,811.50
Over three years 12,385,027.08 17,985,798.53
Total 4,190,201,244.86 3,312,254,229.84
(2) Important account payable with account age over one year
Nil
24. Accounts received in advance
(1) Accounts received in advance
In RMB/CNY
140
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Item Ending balance Opening balance
Within 1 year 1,873,510.34 1,493,602.00
1-2 years
2-3 years
Over three years
Total 1,873,510.34 1,493,602.00
(2) Important accounts received in advance with account age over one year
Nil
25. Contract liabilities
In RMB/CNY
Item Ending balance Opening balance
Within 1 year 55,285,401.22 110,256,431.74
1-2 years 1,289,811.86 698,914.28
2-3 years 697,976.58 260,387.26
Over three years 863,622.38 1,028,097.33
Total 58,136,812.04 112,243,830.61
26. Wage payable
(1) Wage payable
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 161,202,257.62 513,510,301.70 547,181,210.50 127,531,348.82
II. Post-employment welfare- defined
27,587,740.03 45,843,040.90 50,962,710.85 22,468,070.08
contribution plans
III. Dismissed welfare 2,249,529.82 96,653.00 96,653.00 2,249,529.82
IV. Other welfare due within one
106,180,000.00 31,541,027.96 74,638,972.04
year
V. Other short-term
welfare-Housing subsidies,
17,124,210.19 972,822.40 16,151,387.79
employee benefits and welfare
funds
Total 314,343,737.66 559,449,995.60 630,754,424.71 243,039,308.55
141
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(2) Short-term compensation
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonuses, allowances
141,247,196.85 424,901,003.55 454,531,155.68 111,617,044.72
and subsidies
2. Welfare for workers and staff 28,353,036.34 28,353,036.34 0.00
3. Social insurance 8,701,447.13 19,046,975.56 23,041,946.62 4,706,476.07
Including: Medical
7,575,173.65 15,378,319.54 18,984,989.97 3,968,503.22
insurance
Work injury insurance 541,230.02 1,130,519.15 1,283,219.25 388,529.92
Maternity insurance 585,043.46 2,538,136.87 2,773,737.40 349,442.93
4. Housing accumulation fund 679,677.00 33,920,015.00 33,868,163.00 731,529.00
5. Labor union expenditure and
10,573,936.64 7,289,271.25 7,386,908.86 10,476,299.03
personnel education expense
Total 161,202,257.62 513,510,301.70 547,181,210.50 127,531,348.82
(3) Defined contribution plans
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
9,782,749.83 31,942,527.72 30,034,012.54 11,691,265.01
insurance
2. Unemployment
412,974.22 807,532.44 942,478.37 278,028.29
insurance
3. Enterprise annuity 17,392,015.98 13,092,980.74 19,986,219.94 10,498,776.78
Total 27,587,740.03 45,843,040.90 50,962,710.85 22,468,070.08
27. Taxes payable
In RMB/CNY
Item Ending balance Opening balance
Value-added tax 47,094,179.93 61,749,095.75
Corporation income tax 37,089,173.54 50,686,013.43
Individual income tax 449,693.94 2,689,642.51
City maintaining & construction tax 3,324,045.95 4,348,399.47
142
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Educational surtax 2,374,318.52 3,105,999.62
Other (including stamp tax and local funds) 8,879,922.14 6,959,261.08
Total 99,211,334.02 129,538,411.86
28. Other account payable
In RMB/CNY
Item Ending balance Opening balance
Interest payable 5,348.44
Dividend payable 367,000,766.60
Other accounts payable 66,411,696.56 65,266,262.39
Total 433,417,811.60 65,266,262.39
(1) Interest payable
In RMB/CNY
Item Ending balance Opening balance
Other 5,348.44
Total 5,348.44
(2) Dividend payable
In RMB/CNY
Item Ending balance Opening balance
Common stock dividend 367,000,766.60
Total 367,000,766.60
(3) Other account payable
1) Classification of other accounts payable according to nature of account
In RMB/CNY
Item Ending balance Opening balance
Deposit and margin 10,030,431.49 14,458,865.71
Social insurance and reserves funds that withholding 8,425,868.28 8,434,584.35
Intercourse funds of unit 38,960,145.98 37,055,997.50
Other 8,995,250.81 5,316,814.83
143
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Total 66,411,696.56 65,266,262.39
2) Significant other payable with over one year age
In RMB/CNY
Item Ending balance Reasons for non-repayment or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Total 4,500,000.00
29. Other current liabilities
In RMB/CNY
Item Ending balance Opening balance
Rebate payable 147,739,169.58 96,046,439.21
Total 147,739,169.58 96,046,439.21
30. Long-term borrowings
(1) Category of Long-term borrowings
In RMB/CNY
Item Ending balance Opening balance
Credit loan 20,000,000.00
Total 20,000,000.00
31. Long-term account payable
In RMB/CNY
Item Ending balance Opening balance
Long-term account payable 16,843,181.00 16,843,181.00
Special accounts payable 18,265,082.11 18,265,082.11
Total 35,108,263.11 35,108,263.11
(1) Long-term account payable listed by nature
In RMB/CNY
144
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note ①)
1,140,000.00 1,140,000.00
Financial support funds (2005)
Hi-tech Branch of Nanjing Finance Bureau (note ②)
1,250,000.00 1,250,000.00
Financial support funds (2006)
Hi-tech Branch of Nanjing Finance Bureau (note ③)
1,230,000.00 1,230,000.00
Financial support funds (2007)
Loan transferred from treasury bond (note ④) 678,181.00 678,181.00
Hi-tech Branch of Nanjing Finance Bureau (note ⑤)
2,750,000.00 2,750,000.00
Financial support funds (2008)
Hi-tech Branch of Nanjing Finance Bureau (note ⑥)
1,030,000.00 1,030,000.00
Financial support funds (2009)
Hi-tech Branch of Nanjing Finance Bureau (note ⑦)
960,000.00 960,000.00
Financial support funds (2010)
Hi-tech Branch of Nanjing Finance Bureau (note ⑧)
5,040,000.00 5,040,000.00
Financial support funds (2011)
Hi-tech Branch of Nanjing Finance Bureau (note ⑨)
2,740,000.00 2,740,000.00
Financial support funds (2013)
Total 16,818,181.00 16,818,181.00
Other explanation:
Note ①: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 20 October 2005 to 20 October 2020. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
Note ②: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 20 July 2006 to 20 July 2021. Provided that the operation period in the zone is less than 15 years,
financial supporting capital will be reimbursed.
Note ③: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 17 September 2007 to 17 September 2022. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
Note ④: Loan transferred from treasury bond: Weifu Jinning received RMB 1.87 million Yuan of special funds
from budget of the central government, and RMB 1.73 million Yuan of special funds from budget of the local
government. The non-operating income transferred in was 1.87 million Yuan in 2011 which was confirmed not to
return, if the Company pays back special funds of 3.73 million Yuan to the local government in 11 years since
2012.
Note ⑤: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
145
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
less than 15 years, financial supporting capital will be reimbursed.
Note ⑥: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 27 October 2009 to 27 October 2024. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
Note ⑦: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 December 2010 to 27 December 2025. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
Note ⑧: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 28 December 2011 to 28 December 2026. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
Note ⑨: To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 18 December 2013 to 18 December 2028. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
(2) Special accounts payable
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Removal compensation of
18,265,082.11 18,265,082.11
subsidiary Weifu Jinning
Total 18,265,082.11 18,265,082.11 --
32. Long-term wages payable
(1) Long-term wages payable
In RMB/CNY
Item Ending balance Opening balance
I. Post-employment benefits-defined
0 0
benefit plan net liabilities
II. Dismiss welfare 8,333,666.85 8,333,666.85
III. Other long-term welfare 50,058,386.76 50,058,386.76
Total 58,392,053.61 58,392,053.61
(2) Changes in defined benefit plans
Nil
146
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
33. Deferred income
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Financial allocation
Government grand 365,116,022.98 14,454,400.00 37,018,946.70 342,551,476.28
received
Total 365,116,022.98 14,454,400.00 37,018,946.70 342,551,476.28 --
Item with government grants involved:
In RMB/CNY
Amount Amount Cost
New grants Other Assets
reckoned in reckoned into reduction
Item Opening balance in the chang Ending balance related/Inco
non-operati other income in the
Period es me related
on revenue in the period period
Industrialization
project for injection
VE pump system Assets
with electronically related/
2,163,000.86 721,000.30 1,442,000.56
controlled high Income
pressure for related
less-emission diesel
used
Appropriation on
reforming of
production line
technology and R&D Assets
7,100,000.00 7,100,000.00
ability of common related
rail system for diesel
by distributive
high-voltage
Fund of industry Income
26,657,526.17 17,681,780.09 8,975,746.08
upgrade (2012) related
Fund of industry Income
60,520,000.00 60,520,000.00
upgrade (2013) related
Appropriation on
central basic Assets
1,428,571.45 357,142.86 1,071,428.59
construction related
investment
147
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
R&D and
industrialization of
the high-pressure
Assets
variable pump of the 6,870,714.16 771,547.64 6,099,166.52
related
common rail system
of diesel engine for
automobile
Research institute of
motor vehicle
Assets
exhaust 1,836,712.58 304,455.15 1,532,257.43
related
after-treatment
technology
Fund of industry Income
36,831,000.00 36,831,000.00
upgrade (2014) related
New-built assets
compensation after Assets
124,849,393.92 10,331,805.43 114,517,588.49
the removal of parent related
company
Fund of industry Income
40,000,000.00 40,000,000.00
upgrade (2016) related
Guiding capital for
the technical reform
Assets
from State Hi-Tech 8,147,430.27 973,816.75 7,173,613.52
related
Technical
Commission
Implementation of
the variable
Assets
cross-section 8,972,771.42 804,991.33 8,167,780.09
related
turbocharger for
diesel engine
Demonstration
Assets
project for intelligent 1,148,441.34 135,174.43 1,013,266.91
related
manufacturing
Assets
14,454,400. related/
Other 38,590,460.81 4,937,232.72 48,107,628.09
00 Income
related
14,454,400.
Total 365,116,022.98 0.00 37,018,946.70 0.00 0.00 342,551,476.28
00
148
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low
emissions diesel: in September 2009, Weifu Jinning signed “Project Contract of Technology Outcome
Transferring Special Capital in Jiangsu Province” with Nanjing Technical Bureau, according to which Weifu
Jinning received appropriation 6.35 million Yuan in 2009, 4.775 million Yuan received in 2010 and 0.875 million
Yuan received in 2011. According to the contract, the attendance date of this project was: from October of 2009 to
March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed assets
investment which are belongs to the government grand with assets/income concerned. In 2013, accepted by the
science & technology agency of Jiangsu Province, and 4,789,997.04 Yuan with income related was reckoned into
current operation revenue directly; the 7,210,002.96 Yuan with assets related was amortized during the predicted
service period of the assets, and 721,000.30 Yuan amortized in the Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for
diesel engine use and production line technological transformation project: according to XCJ No. [2010] 59, the
Company has received special funds of 7.1 million Yuan appropriated by Finance Bureau of Wuxi New District in
2011 and used for the Company’s research and development ability of distributive high-pressure common rail
system for diesel engine use and production line technological transformation project; this appropriation belongs
to government subsidies related to assets, and will be amortized according to the depreciation process of the
underlying assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and
Document Xi Xin Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for
industry upgrading this year. Current write off: 17,681,780.09Yuan.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi
Xin Guan Jing Fa [2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the
Company received funds of 60.52 million Yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the
document Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment of
capital construction from the central government in 2012. The project has passed the acceptance check in current
period, this appropriation should be amortized within the surplus service life of current assets, and amortization
amount of current period is 357,142.86 Yuan.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for
automobile: the Company received appropriated for the project in 2013 with 8.05 million Yuan in line with
documents of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong
Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao [2014] No.58, Xi Ke Ji [2014] No. 246 and Xi
Cai Gong Mao [2014] No.162. Received 3 million Yuan in 2014 and 0.45 million Yuan in 2015; and belongs to
government grant with assets concerned, and shall be amortized according to the depreciation process, amount of
771,547.64 Yuan amortizes in the period.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader has
applied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi
149
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Science and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. This
declaration has been approved by Wuxi Huishan Science and Technology Bureau and Wuxi Science and
Technology Bureau in 2012, and the company has received appropriation of 2.4 million Yuan in 2012, and
received appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related to
assets and will be amortized according to the depreciation process, amount of 304,455.15 Yuan amortizes in the
period.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and
Xi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated for
industry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation received
by the Company, and will be amortized according to the depreciation of new-built assets, amount of
10,331,805.43 Yuan amortizes in the period.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and
Xi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in
2016.
(11) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the
document Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuan
for the guiding capital of technical reform (1st batch) from Wuxi for year of 2016, and belongs to government
grant with assets concerned, and shall be amortized according to the depreciation process, amount of 973,816.75
Yuan amortize in the period.
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document
YCZ Fa[2016] NO.623 and “Strong Industrial Base Project Contract for year of 2016”, subsidiary Weifu Tianli
received a specific subsidy of 16.97 million Yuan (760,000 Yuan received in 2018), the fund supporting strong
industrial base project (made-in-China 2025) of central industrial transformation and upgrading 2016 from
Ministry of Industry and Information Technology; and belongs to government grant with assets concerned, and
shall be amortized according to the depreciation process, amount of 804,991.33 Yuan amortize in the period.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent
Manufacturing Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 Yuan
was granted by relevant government authority in Huishan district to our subsidiary Weifu Leader in 2017 to be
utilized for transformation and upgrade of Weifu Leader’s intelligent manufacturing facilities. This subsidy
belongs to government grant related to assets which shall be amortized based on the depreciation progress of the
assets. Amortization for the period amounts to 135,174.43 Yuan.
34. Share capital
In RMB/CNY
150
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Changeduringthe year (+, -)
Opening balance New shares Shares transferred Ending balance
Bonus share Other Subtotal
issued from capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
35. Capital reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3,346,333,817.41 3,346,333,817.41
capital premium)
Other Capital reserve 45,193,988.92 45,193,988.92
Total 3,391,527,806.33 3,391,527,806.33
36. Treasury stock
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Stock repurchase 300,007,852.84 300,007,852.84
Total 300,007,852.84 300,007,852.84
37. Other comprehensive income
In RMB/CNY
Current period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Less:
Account previous income in Belong to Belong to
Opening incom Ending
Item before period and previous parent minority
balance e tax balance
income tax carried period and company after shareholder
expens
in the year forward to carried tax s after tax
e
gains and forward to
losses in retained
current earnings in
period current
period
151
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II. Other comprehensive income
items which will be reclassified 134,871.67 4,618.33 3,048.10 1,570.23 137,919.77
subsequently to profit or loss
Conversion difference of foreign
134,871.67 4,618.33 3,048.10 1,570.23 137,919.77
currency financial statement
Total other comprehensive income 134,871.67 4,618.33 3,048.10 1,570.23 137,919.77
38. Reasonable reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 3,247,757.06 11,612,779.18 12,224,050.26 2,636,485.98
Total 3,247,757.06 11,612,779.18 12,224,050.26 2,636,485.98
39. Surplus reserve
In RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
510,100,496.00 510,100,496.00
reserves
Total 510,100,496.00 510,100,496.00
40. Retained profit
In RMB/CNY
Item Current period Last period
Retained profits at the end of last year before adjustment 12,076,443,635.56 10,996,945,870.13
Total retained profit at beginning of the adjustment (+ for increased,
1,584,556.37
-for decreased)
Retained profits at the beginning of the year after adjustment 12,076,443,635.56 10,998,530,426.50
Add: The net profits belong to owners of patent company of this
1,326,344,424.98 2,268,026,432.78
period
Common dividend payable 1,093,241,270.00 1,210,740,684.00
Add: Net effect of disposal other equity instrument investment 20,627,460.28
Retained profit at period-end 12,309,546,790.54 12,076,443,635.56
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
152
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
41. Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main operating 6,352,974,489.95 5,256,052,615.30 4,133,178,892.36 3,179,484,258.13
Other business 241,429,134.61 157,916,759.23 270,265,453.69 225,902,246.31
Total 6,594,403,624.56 5,413,969,374.53 4,403,444,346.05 3,405,386,504.44
Information related to performance obligations:
Nil
Information related to the transaction price apportioned to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but not
yet fulfilled or not yet completed is RMB 0.00.
42. Operating tax and extras
In RMB/CNY
Item Current period Last Period
City maintaining & construction tax 11,315,610.47 12,840,319.07
Educational surtax 8,082,578.87 9,260,002.10
Property tax 8,136,007.34 7,976,886.64
Land use tax 2,258,583.38 3,000,765.60
Vehicle use tax 17,455.52 5,540.64
Stamp duty 2,074,390.19 1,349,389.57
Other taxes 76,923.38 101,668.04
Total 31,961,549.15 34,534,571.66
43. Sales expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 25,826,320.40 26,545,495.48
153
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Consumption of office materials and
3,267,626.29 5,902,212.14
business travel charge
Transportation charge 22,287,326.77 13,044,708.75
Warehouse charge 7,320,422.39 2,516,917.39
Three guarantees cost 65,575,346.96 39,932,538.62
Business entertainment fee 8,669,963.79 9,328,770.85
Other 5,447,164.71 7,000,004.17
Total 138,394,171.31 104,270,647.40
44. Administration expenses
In RMB/CNY
Item Current period Last Period
Salary and fringe benefit 125,724,396.50 134,821,395.41
Depreciation charger and long-term assets
30,914,703.59 17,239,939.30
amortization
Consumption of office materials and
5,274,784.55 5,392,838.23
business travel charge
Incentive fund 45,360,000.00 35,940,000.00
Other 129,710,776.64 117,515,807.49
Total 336,984,661.28 310,909,980.43
44. R&D expenses
In RMB/CNY
Item Current period Last Period
Technological development expenses 211,531,953.72 180,167,642.16
Total 211,531,953.72 180,167,642.16
46. Financial expenses
In RMB/CNY
Item Current period Last Period
Interest expenses 5,800,553.09 9,264,648.42
Note discount interest expenses 5,393,256.06 6,867,326.37
Deposit interest income -43,053,210.79 -48,416,919.83
Gains/losses from exchange -4,472,009.34 583,881.77
154
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Handling charges 1,724,451.73 2,208,267.69
Total -34,606,959.25 -29,492,795.58
47. Other income
In RMB/CNY
Sources of income generated Current period Last Period
Government grants with routine operation
43,932,417.68 17,632,117.95
activity concerned
Total 43,932,417.68 17,632,117.95
48. Investment income
In RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based
785,533,710.72 790,465,131.05
on equity
Investment income from holding financial assets
2,287,308.59
available for sales
Investment income of financial products 138,448,908.25 95,464,240.84
Other -408,092.36
Total 923,574,526.61 888,216,680.48
49. Net exposure hedge income
Nil
50. Income from change of fair value
In RMB/CNY
Sources Current period Last Period
Transaction financial asset 258,157.65 30,195,948.00
Investment income from disposal of
490,329.13
trading financial assets, etc.
Total 258,157.65 30,686,277.13
51. Credit impairment loss
In RMB/CNY
155
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Item Current period Last Period
Bad debt losses on other receivables -33,433.24
Bad debt losses on accounts receivable -3,622,549.31 -6,204,357.51
Total -3,622,549.31 -6,237,790.75
52. Assets impairment loss
In RMB/CNY
Item Current period Last Period
II. Loss of inventory fall in price and impairment loss
-52,807,909.47 -1,500,885.27
of contract performance cost
Total -52,807,909.47 -1,500,885.27
53. Income from assets disposal
In RMB/CNY
Sources Current period Last Period
Income from disposal of non-current assets 503,005.53 5,542,556.91
Losses from disposal of non-current assets -270,505.98 -434,708.46
Total 232,499.55 5,107,848.45
54. Non-operating income
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Government subsidy 26,547,209.00
Other 164,150.94 997,548.26 164,150.94
Total 164,150.94 27,544,757.26 164,150.94
Government subsidies included in current profit and loss: nil
55. Non-operating expense
In RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donation 3,003,503.70 43,500.00 3,003,503.70
Total non-current asset retirement losses 775,870.54 180,170.75 775,870.54
156
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Including: loss of fixed assets scrap 775,870.54 180,170.75 775,870.54
Local fund 343,760.00 2,291,966.58
Other 1,317.44 115,815.69 1,317.44
Total 4,124,451.68 2,631,453.02 3,780,691.68
56. Income tax expense
(1) Income tax expense
In RMB/CNY
Item Current period Last Period
Payable tax in current period 79,048,948.52 52,525,690.93
Adjusted the previous income tax -3,635,148.44 3,839,633.55
Increase/decrease of deferred income tax assets -16,387,431.29 20,543,454.34
Increase/decrease of deferred income tax liability -1,520,916.67 4,473,875.72
Total 57,505,452.12 81,382,654.54
(2) Adjustment on accounting profit and income tax expenses
In RMB/CNY
Item Current period
Total profit 1,403,775,715.79
Income tax measured by statutory/applicable tax rate 210,566,357.37
Impact by different tax rate applied by subsidies 933,534.12
Adjusted the previous income tax -3,635,148.44
Impact by non-taxable revenue -117,889,611.93
Impact by the deductible losses of the un-recognized previous deferred income tax -736,289.69
The deductible temporary differences or deductible losses of the un-recognized
-3,291,618.66
deferred income tax assets in the Period
Impact on additional deduction -13,068,335.67
Other -15,373,434.98
Income tax expense 57,505,452.12
57. Other comprehensive income
See Note 37
157
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
58. Items of ash flow statement
(1) Other cash received in relation to operation activities
In RMB/CNY
Item Current period Last Period
Interest income from bank deposits 43,053,210.79 49,585,253.17
Government grants 21,365,245.08 33,827,547.71
Other 6,383,457.07 2,362,693.88
Total 70,801,912.94 85,775,494.76
(2) Other cash paid in relation to operation activities
In RMB/CNY
Item Current period Last Period
Cash cost 244,636,121.10 158,648,871.84
Other 12,194,783.41 10,439,746.86
Total 256,830,904.51 169,088,618.70
(3) Cash received from other investment activities
Nil
(4) Cash paid related with investment activities
In RMB/CNY
Item Current period Last Period
Pay Wuhan Zhongyu loan 24,000,000.00
Total 24,000,000.00
(5) Other cash received in relation to financing activities
In RMB/CNY
Item Current period Last Period
Weifu Leader receives loans from Wuxi
5,470,000.00
Industry Group
Total 5,470,000.00
158
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(6) Cash paid related with financing activities
In RMB/CNY
Item Current period Last Period
Weifu Leader pays loans from Wuxi Industry Group 5,470,000.00
Repayment of national debt into loan 339,091.00
Stock repurchase 300,007,852.84
Total 300,007,852.84 5,809,091.00
59. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB/CNY
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 1,346,270,263.67 1,275,102,693.23
Add: Assets impairment provision 56,430,458.78 7,738,676.02
Depreciation of fixed assets, consumption of oil assets and
170,298,478.93 150,680,275.86
depreciation of productive biology assets
Amortization of intangible assets 17,856,029.07 7,769,977.82
Amortization of long-term deferred expenses 2,216,221.26 1,498,822.02
Loss from disposal of fixed assets, intangible assets and other
-232,499.55 -5,107,848.45
long-term assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 775,870.54 180,170.75
Gain/loss of fair value changes (gain is listed with “-”) -258,157.65 -30,686,277.13
Financial expenses (gain is listed with “-”) 1,308,072.77 8,918,152.92
Investment loss (gain is listed with “-”) -923,574,526.61 -885,938,793.49
Decrease of deferred income tax asset ((increase is listed with “-”) -16,604,858.64 17,047,670.29
Increase of deferred income tax liability (decrease is listed with “-”) -1,520,916.67 -55,516.90
Decrease of inventory (increase is listed with “-”) 722,938,987.42 9,891,557.33
Decrease of operating receivable accounts (increase is listed with “-”) -1,396,333,918.08 -802,107,175.59
Increase of operating payable accounts (decrease is listed with “-”) 457,453,317.78 934,171,985.46
Other 634,249.39 1,219,538.11
Net cash flows arising from operating activities 437,657,072.41 690,323,908.25
2. Material investment and financing not involved in cash flow -- --
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 1,708,154,488.87 2,596,327,132.26
Less: Balance of cash equivalent at year-begin 820,498,653.85 2,404,674,139.49
Net increase of cash and cash equivalents 887,655,835.02 191,652,992.77
(2) Net cash payment for the acquisition of a subsidiary in the period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
In RMB/CNY
Item Ending balance Opening balance
I. Cash 1,708,154,488.87 820,498,653.85
Including: Cash on hand 76,486.27 93,165.33
Bank deposit available for payment
1,708,078,002.60 820,405,488.52
at any time
III. Balance of cash and cash equivalents at
1,708,154,488.87 820,498,653.85
the period-end
60. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: nil
61. Assets with ownership or use right restricted
In RMB/CNY
Item Ending Book value Restriction reason
Monetary funds 32,786,262.96 Cash deposit paid for bank acceptance
Note receivable 645,547,079.23 Notes pledge for bank acceptance
Monetary funds 2,206,857.75 Court freeze
Monetary funds 50,000,000.00 Stock repurchase
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016)
Transaction financial
117,947,240.94 Y03MC2492 of Guangdong Shenzhen Intermediate People's Court the property
asset
with the value of 217 million Yuan under the name of the Company and other
160
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co.,
Ltd. was frozen. As of the end of the reporting period, 4.71 million shares of
Miracle Automation and 11,739,102 shares of SDEC and fruit held by the
Company were frozen.
Total 848,487,440.88 --
62. Item of foreign currency
(1) Item of foreign currency
In RMB/CNY
Closing balance of foreign
Item Rate of conversion Ending RMB balance converted
currency
Monetary funds -- --
Including: USD 13,209,792.28 7.0795 93,518,724.44
EUR 1,436,642.82 7.961 11,437,113.50
HKD 11,049,573.90 0.9134 10,092,680.80
JPY 0.065808 0.00
DKK 6,375,259.14 1.0685 6,811,964.40
Account receivable -- --
Including: USD 1,080,383.61 7.0795 7,648,575.77
EUR 738,532.97 7.961 5,879,460.97
HKD 0.9134 0.00
JPY 3,645,361.00 0.065808 239,893.92
DKK 2,658,753.53 1.0685 2,840,878.15
Long-term borrowings -- --
Including: USD
EUR
HKD
Short-term borrowings
Including: EUR 5,644,084.25 7.961 44,932,554.71
Account payable
Including: USD 318,270.52 7.0795 2,253,196.15
EUR 2,194,697.44 7.961 17,471,986.32
JPY 43,195,476.00 0.065808 2,842,607.88
CHF 153,260.54 7.4434 1,140,779.50
161
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
DKK 1,491,131.05 1.0685 1,593,273.53
Other account payable
Including: USD 1,087.90 7.0795 7,701.79
DKK 4,005,904.09 1.0685 4,280,308.52
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
√ Applicable □ Not applicable
63. Hedging
Disclosure of the qualitative and quantitative information on hedging items and related hedging instruments, hedging risks according
to category: nil
64. Government grants
(1) Government grants
In RMB/CNY
Amount
Category Amount Item reckoned in
current gain/loss
The second batch of provincial-level industrial and
information industry transformation special funds in 5,000,000.00 Deferred income
2019
Wuxi City Key Technical Transformation Guide Fund
8,330,000.00 Deferred income, Other income 1,680,000.00
Project
2019 Wuxi Mayor Quality Award 1,000,000.00 Other income 1,000,000.00
Stable subsidy 3,505,660.57 Other income 3,505,660.57
Intelligent manufacturing and technological
955,000.00 Other income 955,000.00
transformation awards and supplementary funds
Huishan District Science and Technology
Development Support Project Reward and Subsidy 200,000.00 Other income 200,000.00
Funds
2019 Quality Award and Finalist Award 200,000.00 Other income 200,000.00
In 2019, the integration of industrialization and Other income
180,000.00 180,000.00
industrialization, and the provincial-level
162
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
segmentation project reward for enterprise cloud
2019 Work Award for Strong Quality District 150,000.00 Other income 150,000.00
Special fund for intellectual property 56,100.00 Other income 56,100.00
Training subsidy for smart employees 214,300.00 Other income 214,300.00
Other 1,574,184.51 Deferred income, Other income 1,334,184.51
Total 21,365,245.08 9,475,245.08
(2) Government grants rebate
□ Applicable√ Not applicable
65. Other
Nil
VIII. Changes of consolidation scope
1. Enterprise combine not under the same control
Nil
2. Enterprise combine under the same control
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Nil
5. Other reasons for consolidation range changed
Nil
6. Other
Nil
163
无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Registered Share-holding ratio
Subsidiary Business nature Acquired way
place place Directly Indirectly
Spare parts of Enterprise combine under
Weifu Jinning Nanjing Nanjing 80.00%
internal-combustion engine the same control
Automobile exhaust purifier, Enterprise combine under
Weifu Leader Wuxi Wuxi 94.81%
muffler the same control
Spare parts of
Weifu Mashan Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
Weifu Chang’an Wuxi Wuxi 100.00% Investment
internal-combustion engine
Weifu International Enterprise combine under
Wuxi Wuxi Trading 100.00%
Trade the same control
Spare parts of
Weifu Schmidt Wuxi Wuxi 66.00% Investment
internal-combustion engine
Spare parts of Enterprise combine not
Weifu Tianli Ningbo Ningbo 98.83% 1.17%
internal-combustion engine under the same control
Spare parts of Enterprise combine not
Weifu Autocam Wuxi Wuxi 51.00%
internal-combustion engine under the same control
Weifu Leader Automobile exhaust purifier,
Wuhan Wuhan 60.00% Investment
(Wuhan) muffler
Weifu Leader Automobile exhaust purifier,
Chongqing Chongqing 100.00% Investment
(Chongqing) muffler
Weifu Leader Automobile exhaust purifier,
Nanchang Nanchang 100.00% Investment
(Nanchang) muffler
Weifu Electronic Enterprise combine not
Wuxi Wuxi Hub motor 80.00%
Drive under the same control
SPV Denmark Denmark Investment 100.00% Investment
Enterprise combine not
IRD Denmark Denmark Fuel cell components 66.00%
under the same control
Enterprise combine not
IRD America America America Fuel cell components 66.00%
under the same control
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(2) Important non-wholly-owned subsidiary
In RMB/CNY
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Weifu Jinning 20.00% 14,246,851.21 15,748,768.80 191,628,814.53
Weifu Schmidt 34.00% 1,643,010.32 12,856,509.10
Weifu Leader 5.19% 5,729,722.13 92,437,878.29
Weifu Autocam 49.00% 5,476,145.85 160,625,407.78
Total 27,095,729.51 15,748,768.80 457,548,609.70
(3) Main finance of the important non-wholly-owned subsidiary
In RMB/CNY
Ending balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Weifu Jinning 1,157,127,060.71 275,724,001.15 1,432,851,061.86 424,331,784.80 48,096,585.52 472,428,370.32
Weifu Schmidt 119,294,340.72 47,503,051.13 166,797,391.85 128,017,597.97 570,000.00 128,587,597.97
Weifu Leader 4,139,268,777.15 1,165,405,904.38 5,304,674,681.53 3,531,665,367.66 21,193,740.39 3,552,859,108.05
Weifu Autocam 246,210,818.77 332,438,683.70 578,649,502.47 253,736,607.36 253,736,607.36
Total 5,661,900,997.35 1,821,071,640.36 7,482,972,637.71 4,337,751,357.79 69,860,325.91 4,407,611,683.70
In RMB/CNY
Opening balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Weifu Jinning 999,097,495.08 334,721,775.17 1,333,819,270.25 318,915,621.86 47,104,930.82 366,020,552.68
Weifu Schmidt 141,991,506.20 49,208,881.93 191,200,388.13 157,822,785.29 157,822,785.29
Weifu Leader 3,931,739,116.15 1,095,110,196.65 5,026,849,312.80 3,341,853,614.37 22,204,377.06 3,364,057,991.43
Weifu Autocam 245,057,798.53 323,114,477.06 568,172,275.59 254,234,583.00 254,234,583.00
Total 5,317,885,915.96 1,802,155,330.81 7,120,041,246.77 4,072,826,604.52 69,309,307.88 4,142,135,912.40
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
In RMB/CNY
Current period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Weifu Jinning 352,597,870.12 71,027,425.74 71,027,425.74 13,549,394.41
Weifu Schmidt 98,614,059.14 4,832,191.04 4,832,191.04 -15,080,952.12
Weifu Leader 3,307,136,098.12 89,024,252.11 89,024,252.11 194,818,501.61
Weifu Autocam 174,153,210.61 10,975,202.52 10,975,202.52 -11,097,809.19
Total 3,932,501,237.99 175,859,071.41 175,859,071.41 182,189,134.71
In RMB/CNY
Last Period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Weifu Jinning 328,481,669.39 75,516,399.57 75,516,399.57 33,455,248.40
Weifu Schmidt 84,285,489.50 -45,675.45 -45,675.45 5,467,884.14
Weifu Leader 1,338,975,875.93 32,780,686.77 32,780,686.77 116,866,170.40
Weifu Autocam 177,929,684.84 2,330,164.41 2,330,164.41 33,593,148.87
Total 1,929,672,719.66 110,581,575.30 110,581,575.30 189,382,451.81
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Share-holding ratio Accounting
treatment on
Main
Registered investment for
Joint venture or associated enterprise operation Business nature
place Directly Indirectly joint venture and
place
associated
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst Co.,
Wuxi Wuxi Catalyst 49.00% Equity method
Ltd.
II. Associated enterprise
Bosch Automobile Diesel System Co., Internal-combustion
Wuxi Wuxi 32.50% 1.50% Equity method
Ltd. engine accessories
Zhonglian Automobile Electronic Co., Internal-combustion
Shanghai Shanghai 20.00% Equity method
Ltd. engine accessories
Weifu Precision Machinery Internal-combustion
Wuxi Wuxi 20.00% Equity method
Manufacturing Co., Ltd. engine accessories
Shinwell Automobile Tech. (Wuxi) Co., Automobile
Wuxi Wuxi 45.00% Equity method
Ltd. components
(2) Main financial information of the important joint venture
In RMB/CNY
Ending balance/Current period Opening balance/Last Period
Weifu Environment Weifu Environment
Current assets 4,313,646,477.87 3,285,078,665.28
Including: cash and cash equivalents 99,097,297.11 52,542,261.45
Non -current assets 316,807,824.61 323,188,749.54
Total assets 4,630,454,302.48 3,608,267,414.82
Current liabilities 3,314,035,548.28 2,401,381,614.27
Non-current liabilities 26,238,026.53 26,545,326.53
Total liabilities 3,340,273,574.81 2,427,926,940.80
Minority shareholders' equity
Shareholders’ equity attributable to parent company 1,290,180,727.67 1,180,340,474.02
Share of net assets calculated by shareholding ratio 632,188,556.56 578,366,832.27
Adjustment matters
--Goodwill
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
--Unrealized profits from internal transactions
--Other
Book value of equity investment in joint ventures 632,188,556.56 578,366,832.27
Fair value of equity investment in joint ventures
with publicly quoted prices
Operation income 3,456,176,529.08 1,590,675,320.87
Financial expenses 59,064,339.14 40,646,719.18
Income tax expense 20,282,165.19 4,391,396.50
Net profit 114,476,846.31 23,640,351.13
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 114,476,846.31 23,640,351.13
Dividends received from joint ventures this year
(3) Main financial information of the important associated enterprise
In RMB/CNY
Ending balance/Current period Opening balance/Last Period
Bosch Diesel Zhonglian Weifu Precision Bosch Diesel Zhonglian Weifu Precision
System Automobile Machinery System Automobile Machinery
Current assets 10,321,893,175.35 1,514,193,827.44 401,699,746.42 10,878,760,988.82 175,292,101.34 321,631,869.85
Non -current
2,882,412,425.39 5,094,179,637.02 161,717,212.96 3,059,116,036.23 6,129,564,645.28 151,133,767.52
assets
Total assets 13,204,305,600.74 6,608,373,464.46 563,416,959.38 13,937,877,025.05 6,304,856,746.62 472,765,637.37
Current liabilities 7,414,006,511.77 1,329,336,072.57 214,785,260.82 4,613,514,567.69 3,030,820.85 162,393,934.95
Non-current
2,668,844.32 2,699,079.03
liabilities
Total liabilities 7,414,006,511.77 1,332,004,916.89 214,785,260.82 4,613,514,567.69 5,729,899.88 162,393,934.95
Minority
shareholders'
equity
Attributable to
parent company 5,790,299,088.97 5,276,368,547.57 348,631,698.56 9,324,362,457.36 6,299,126,846.74 310,371,702.42
shareholders’
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
equity
Share of net
assets calculated
1,968,701,690.23 1,055,273,709.50 69,726,339.71 3,170,283,235.50 1,259,825,369.35 62,074,340.48
by shareholding
ratio
Adjustment
matters
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized
profit of internal -20,296,460.34 -16,189.06 -20,979,859.92 -8,703.61
trading
--Other -0.28 -529,034.03 -0.28 -529,034.05
Book value of
equity investment
2,216,193,990.96 1,056,680,975.46 69,181,116.62 3,417,092,136.65 1,261,232,635.30 61,536,602.82
in associated
enterprise
Fair value of
equity investment
in joint ventures
with publicly
quoted prices
Operation income 7,807,711,867.16 11,705,308.41 205,853,869.35 7,690,808,970.61 11,298,817.88 144,654,208.76
Net profit 1,764,998,863.92 634,241,700.83 38,259,996.14 1,827,071,096.33 737,662,037.83 23,338,840.07
Net profit from
discontinued
operations
Other
comprehensive
income
Total
comprehensive 1,764,998,963.92 634,241,700.83 38,259,996.14 1,827,071,096.33 737,662,037.83 23,338,840.07
income
Dividends
received from
associated 900,840,579.51 140,200,000.00 1,070,000.00 429,448,388.47 105,200,000.00
enterprise in the
year
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Other explanation
① Adjustment item for other “-0.28”: the differential tail;
The dividend of 1.07 million yuan distributed by Weifu Precision Machinery on December 31, 2019 was received on way of bank
acceptance bill.
(4) Financial summary for non-important Joint venture and associated enterprise
In RMB/CNY
Ending balance/Current period Opening balance/Last Period
Joint venture: -- --
Amount based on share-holding ratio -- --
--Net profit -1,176,749.59
--Total comprehensive income -1,176,749.59
Associated enterprise: -- --
Total book value of investment 3,445,496.89 4,177,746.31
Amount based on share-holding ratio -- --
--Net profit -732,249.42 -1,250,239.86
--Total comprehensive income -732,249.42 -1,250,239.86
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or associated enterprise investment concerned
Nil
4. Major conduct joint operation
Nil
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
5. Structured body excluding in consolidate financial statement
Nil
6. Other
Nil
X. Risk related with financial instrument
Main financial instrument of the Company including monetary funds, structured deposits, account receivable,
equity instrument investment, financial products, loans, and account payable etc., more details of the financial
instrument can be found in relevant items of Note VII. Risks concerned with the above-mentioned financial
instrument, and the risk management policy takes for lower the risks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower the
adverse impact on performance of the Company to minimum standards, and maximized the benefit for
shareholders and other investors. Base on the risk management targets, the basic tactics of the risk management is
to recognized and analyzed the vary risks that the Company counted, established an appropriate risk exposure
baseline and caring risk management, supervise the vary risks timely and reliably in order to control the risk in a
limited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainly
including credit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the risk
management target and policy-making, and takes ultimate responsibility for the target of risk management and
policy. Risk management department and financial control department manager and monitor those risk exposure
to ensuring the risks are control in a limited range.
1. Credit Risk
Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations, and resulting
in the financial loss of other party. The company's credit risk mainly comes from monetary funds, structured
deposits, note receivable, account receivable, other account receivables. The management has established an
appropriate credit policy and continuously monitors the exposure to these credit risks.
The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions
such as commercial banks, the management believes that these commercial banks have higher credit and asset
status, and have lower credit risks.The Company adopts quota policies to avoid credit risks to any financial
institutions.
For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the
credit risk exposure. To prevent the risks, the company has formulated a new customer credit evaluation system
and an existing customer credit sales balance analysis system. The new customer credit evaluation system aims at
new customers, the company will investigate a customer’s background according to the established process to
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
determine whether to give the customer a credit line and the credit line size and credit period. Accordingly, the
company has set a credit limit and a credit period for each customer, which is the maximum amount that does not
require additional approval. The analysis system for credit sales balance of existing customers means that after
receiving a purchase order from an existing customer, the company will check the order amount and the balance
of the accounts owed by the customer so far,if the total of the two exceeds the credit limit of the customer, the
company can only sell to the customer on the premise of additional approval, otherwise the customer must be
required to pay the corresponding amount in advance. In addition, for the credit sales that have occurred, the
company analyzes and audits the monthly statements for risk warning of accounts receivable to ensure that the
company’s overall credit risk is within a controllable range.
The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance
sheet.
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
fluctuations in the market price changes and produce, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.
IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, in
line with the anticipative change orientation, choose floating rate or fixed rate, that is the rate in future period will
goes up prospectively, than choose fixed rate; if the rate in future period will decline prospectively, than choose
the floating rate. In order to minor the bad impact from difference between the expectation and real condition,
loans for liquid funds of the Company are choose the short-term period, and agreed the terms of prepayment in
particular.
(2) Foreign exchange (FX) risk
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly
related with the USD, EUR, SF, JPY, HKD, DKK except for the USD, EUR, SF, JPY, HKD and DKK carried out
for the equipment purchasing of parent company and Autocam, material purchasing of parent company, technical
service and trademark usage costs of parent company, the import and export of Weifu International Trade and
operation of IRD, other main business of the Company are pricing and settle with RMB (Yuan). In consequence
of the foreign financial assets and liabilities takes minor ratio in total assets, the Company has small FX risk of the
financial instrument, considered by management of the Company.
End as 30 June 2020, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
the Company are carried with RMB
Foreign currency assets of the Company till end of 30 June 2020
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Cash on hand Ending foreign currency Ending RMB balance
Convert rate Ratio in assets (%)
balance converted
Monetary funds
Including: USD 13,209,792.28 7.0795 93,518,724.44 0.38%
EUR 1,436,642.82 7.961 11,437,113.50 0.05%
HKD 11,049,573.90 0.9134 10,092,680.80 0.04%
DKK 6,375,259.14 1.0685 6,811,964.40 0.03%
Account receivable
Including: USD 1,080,383.61 7.0795 7,648,575.77 0.03%
EUR 738,532.97 7.961 5,879,460.97 0.02%
JPY 3,645,361.00 0.065808 239,893.92 0.00%
DKK 2,658,753.53 1.0685 2,840,878.15 0.01%
Total ratio in assets 0.56%
Foreign currency liability of the Company till end of 30 June 2020:
Cash on hand Ending foreign currency Ending RMB balance
Convert rate Ratio in assets(%)
balance converted
Short-term borrowings
Including: EUR 5,644,084.25 7.961 44,932,554.71 0.61%
Account payable
Including: USD 318,270.52 7.0795 2,253,196.15 0.03%
EUR 2,194,697.44 7.961 17,471,986.32 0.24%
JPY 43,195,476.00 0.065808 2,842,607.88 0.04%
CHF 153,260.54 7.4434 1,140,779.50 0.02%
DKK 1,491,131.05 1.0685 1,593,273.53 0.02%
Other account payable
Including: USD 1,087.90 7.0795 7,701.79 0.00%
DKK 4,005,904.09 1.0685 4,280,308.52 0.06%
Total ratio in liabilities 1.02%
③ Other pricing risk
The equity instrument investment held by the Company with classification as transaction financial asset and other
non-current financial assets are measured on fair value of the balance sheet date. The fluctuation of expected price
for these investment will affect the gains/losses of fair value changes for the Company.
Furthermore, on the premise of deliberated and approved in 10th session of 8th BOD, the Company exercise entrust
financing with the self-owned idle capital; therefore, the Company has the risks of collecting no principal due to
entrust financial products default. Aims at such risk, the Company formulated a “Management Mechanism of
Capital Financing”, and well-defined the authority approval, investment decision-making, calculation
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
management and risk controls for the entrust financing in order to guarantee a security funds and prevent
investment risk efficiently. In order to lower the adverse impact from unpredictable factors, the Company choose
short-term and medium period for investment and investment product’s term is up to 3 years in principle; in
variety of investment, the Company did not invested for the stocks, derivative products, security investment fund
and the entrust financial products aims at security investment as well as other investment with securities
concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the
enterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has rich
capital to pay the due debts, therefore, a financial control department is established for collectively controlling
such risks. On the one hand, the financial control department monitoring the cash balance, the marketable
securities which can be converted into cash at any time and the rolling forecast on cash flow in future 12 months,
ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the other
hand, building a favorable relationship with the banks, rationally design the line of credit, credit products and
credit terms, guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing
requirements.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB/CNY
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(I) Transaction financial asset 126,649,272.00 4,782,956,195.13 4,909,605,467.13
1.Financial assets measured at fair value and whose
126,649,272.00 4,782,956,195.13 4,909,605,467.13
changes are included in current profit or loss
(1) Investment in debt instruments 4,739,612,911.13 4,739,612,911.13
(2) Equity instrument investment 126,649,272.00 43,343,284.00 169,992,556.00
(III) Other equity instrument investment 285,048,000.00 285,048,000.00
Total liability sustaining measured by fair value 126,649,272.00 5,068,004,195.13 5,194,653,467.13
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
According to relevant requirement of accounting standards, the Company continues to measure the financial
assets available for sale-equity instrument investment by fair value on balance sheet date. On 30 June 2020, the
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
financial assets available for sale-equity instrument investment held by the Company refers to the SDEC (stock
code: 600841) and Miracle Automation (Stock code: 002009), determining basis of the market price at period-end
refers to the closing price of 30 June 2020.
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second-order
4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third-order
(1) Fair value of wealth management products
The fair value of wealth management products is determined by the Company using discounted cash flow
valuation techniques.Among them, the important unobservable input values are mainly the expected annualized
rate of return and the risk factor of wealth management products.
(2) Fair value of equity instrument investment
Due to the lack of market liquidity for this part of financial assets, the Company uses the replacement cost method
to determine its fair value.Among them, the important unobservable input values mainly include the financial data
of the invested company, etc.
5. Continuous third-level fair value measurement items, adjustment information between the opening and
closing book value and sensitivity analysis of unobservable parameters
Nil
6. Continuous fair value measurement items, if there is a conversion between various levels in the current
period, the reasons for the conversion and the policy for determining the timing of the conversion
Nil
7. Changes in valuation technology during the current period and reasons for the changes
Nil
8. The fair value of financial assets and financial liabilities not measured by fair value
Nil
9. Other
Nil
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XII. Related party and related party transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Wuxi Industry Operation of 4720.6710 million
Wuxi 20.22% 20.22%
Group state-owned assets Yuan
Explanation on parent company of the enterprise
Wuxi Industry Development Group Co., Ltd was solely state-owned enterprise funded and established by Wuxi Municipal People’s
Government which mainly took responsibility of authorizing the state-owned assets operation within a certain area, investment
management of significant project, investment and development of manufacturing and services and venture capital in high-tech
achievement
Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.
2. Subsidiary of the Enterprise
Found more in Note IX. 1.” Equity in subsidiary”
3. Joint venture and associated enterprise
Found more in Note IX.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: nil
4. Other Related party
Other Related party Relationship with the Enterprise
Robert Bosch Company Second largest shareholder of the Company
Key executive Director, supervisor and senior executive of the Company
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB/CNY
Content of related Approved Whether more than the
Related party Current period Last Period
transaction transaction limit transaction limit (Y/N)
Weifu Precision Goods and labor 14,833,622.63 30,000,000.00 N 12,828,147.72
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Machinery
Bosch Diesel System Goods and labor 12,261,781.92 25,000,000.00 N 8,332,723.32
Weifu Environment Goods 1,824,736,274.77 3,200,000,000.00 N 675,657,317.56
Robert Bosch
Goods and labor 63,669,835.20 153,000,000.00 N 66,801,410.90
Company
Shinwell Automobile
Goods 881,887.67 5,000,000.00 N
Tech. (Wuxi) Co., Ltd.
Goods sold/labor service providing
In RMB/CNY
Related party Content of related transaction Current period Last Period
Weifu Precision Machinery Goods and labor 774,094.06 661,932.69
Bosch Diesel System Goods and labor 1,551,233,591.58 1,487,822,558.90
Weifu Environment Goods and labor 9,749,595.04 10,231,437.30
Robert Bosch Company Goods and labor 276,348,061.10 309,791,012.66
Shinwell Automobile Tech.
Goods 67,648.59
(Wuxi) Co., Ltd.
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB/CNY
Lessee Assets type Lease income recognized in the Period Lease income recognized at last Period
Weifu Environment Workshop 1,254,028.50 1,254,028.50
As a tenant for the Company: nil
(4) Related guarantee
Nil
(5) Related party’s borrowed/lending funds
In RMB/CNY
Related party Loan amount Start date Maturity Note
Borrowing
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Wuxi Industry Group 5,470,000.00 2020-05-27 2021-05-26
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB/CNY
Item Current period Last Period
Remuneration of key manager 3,050,000.00 2,570,000.00
(8) Other related transactions
Related party Name Current period Last Period
Bosch Diesel System Technology royalties paid etc. 295,419.00 1,002,714.76
Bosch Diesel System Purchase of fixed assets 162,692.06 5,720,900.23
Robert Bosch Company Technology royalties paid etc. 140,558.40 1,122,250.34
Robert Bosch Company Sales of fixed assets 3,193,888.25
Weifu Precision Machinery Purchase of fixed assets 50,000.00
Weifu Environment Sales of fixed assets 9036316.74 10,485,153.25
Wuxi Industry Group Interest paying 5,348.44
6. Receivable/payable items of related parties
(1) Receivable item
In RMB/CNY
Ending balance Opening balance
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Weifu Precision
Account receivable 613,510.54 5,060.71 243,544.57
Machinery
Other account Weifu Precision
1,070,000.00
receivables Machinery
Account receivable Bosch Diesel System 719,914,621.09 868.90 478,258,447.23
Robert Bosch
Account receivable 150,455,844.41 242,527.12 155,195,576.42 135,534.13
Company
Other account Robert Bosch
7,600,000.00 1,520,000.00
receivables Company
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Account receivable Weifu Environment 2,070,205.71 3,925,564.95
Other non-current Weifu Precision
53,788.00 53,788.00
assets Machinery
Account paid in
Bosch Diesel System 316,400.00
advance
Other non-current
Bosch Diesel System 183,842.03
assets
Account paid in Robert Bosch
3,169,268.92 5,954,823.56
advance Company
Other non-current Robert Bosch
6,600,000.00 6,600,000.00
assets Company
(2) Payable item
In RMB/CNY
Item Related party Ending book balance Opening book balance
Account payable Weifu Precision Machinery 10,850,161.08 10,556,782.28
Other account payable Weifu Precision Machinery 58,000.00 29,000.00
Account payable Weifu Environment 1,502,979,560.03 553,049,630.17
Account payable Bosch Diesel System 4,161,496.23 5,664,266.10
Account payable Robert Bosch Company 6,513,666.71 12,297,410.48
Shinwell Automobile Tech.
Account payable 2,212,768.26
(Wuxi) Co., Ltd.
Other account payable Wuxi Industry Group 5,475,348.00
Accounts received in advance Robert Bosch Company 965,203.64
Accounts received in advance Weifu Environment 6,568,149.70
7. Undertakings of related party
Nil
8. Other
Nil
XIII. Share-based payment
Nil
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XIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date: Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
Nil
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
2. Debt restructuring
Nil
3. Assets replacement
Nil
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th session of 7th BOD: in
order to mobilize the initiative and creativity of the employees, established a talent long-term incentive
mechanism, enhance the cohesive force and competitiveness in enterprise, the Company carried out the above
mentioned annuity plan since the date of reply of plans reporting received from labor security administration
department. Annuity plans are: the annuity fund are paid by the enterprise and employees together;the annual fee
paid by the enterprise shall not exceed 8% of the total wages of the employees of the enterprise, and the total
payment of the enterprise and individual employees shall not exceed 12% of the total wages of the employees of
the enterprise.In accordance with the State’s annuity policy, the Company will adjusted the economic benefits in
due time, in principle of responding to the economic strength of the enterprise, the amount paid by the enterprise
at current period control in the 8 percent of the total salary of last year, the upper limit of the employee's annual
distribution amount shall not exceed 5 times of the average distribution amount of the employee, and the excess
part shall not be included in the distribution amount. Personal payment is controlled at 1% of one’s total salary of
the previous year;specific paying ratio later shall be adjust correspondingly in line with the operation condition of
the Company.
In December 2012, the Company received the Reply on annuity plans reporting under the name of WFHT from
labor security administration department, later, the Company entered into the Entrusted Management Contract of
the Annuity Plan of WFHT with PICC.
5. Discontinue business
Not applicable
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have been
satisfied at the same time:
① The component is able to generate revenues and expenses in routine activities;
② Management of the Company is able to assess the operation results regularly, and determine resources
allocation and performance evaluation for the component;
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1. Being analyzed, financial status, operation results and cash flow of the components are able to require by the
Company
The Company mainly engaged in the manufacture of fuel system of internal combustion engine products, auto
components, muffler and purifier etc., based on the product segment, the Company determine three reporting
segments as auto fuel injection system, air management system and automotive post processing system.
Accounting policy for the three reporting segments are shares the same policy state in Note V
Segment assets exclude transaction financial asset, other account receivables-dividend receivable, other
non-current financial assets, other equity instrument investment, long term equity investment and other
undistributed assets, since these assets are not related to products operation.
(2) Financial information for reportable segment
In RMB/CNY
Add:
investment/income
measured by equity,
income of financial
Product segment products or possession
Product segment Product segment
of air and disposal income,
Item of automobile fuel of automotive post Offset of segment Total
management the retained assets or
injection system processing system
system gains/losses as the
financial assets
available for sale or
possession and
disposal income
Operating
2,884,919,241.60 3,353,365,316.53 367,218,243.09 0 11,099,176.66 6,594,403,624.56
revenue
Operating
2,112,277,641.32 3,057,877,036.69 257,511,025.81 0 13,696,329.29 5,413,969,374.53
cost
Total Profit 396,026,063.17 27,683,155.85 50,779,020.28 923,574,526.61 -5,712,949.88 1,403,775,715.79
Net profit 358,143,312.49 39,108,123.71 41,853,822.90 902,864,689.87 -4,300,314.70 1,346,270,263.67
Total assets 13,720,083,175.35 5,250,929,645.58 936,428,814.30 4,863,472,372.43 15,573,761.23 24,755,340,246.43
Total
2,862,910,309.19 3,601,302,196.69 548,683,267.58 5,094,154.34 -300,364,418.23 7,318,354,346.03
liabilities
7. Major transaction and events makes influence on investor’s decision
Nil
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) Classification of account receivable
In RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Accr Accr
Rati Book value Book value
Amount Amount ual Amount Ratio Amount ual
o
ratio ratio
Account
receivable with
0.78 9,107,123.5 100. 1.07 100.
bad debt provision 9,107,123.51 9,107,123.51 9,107,123.51
% 1 00% % 00%
accrual on a single
basis
Including:
Account
receivable with
1,165,249,207 99.2 3,660,065.3 0.31 1,161,589,14 839,731,538.8 98.9 0.44
bad debt provision 3,716,569.87 836,014,968.93
.80 2% 2 % 2.48 0 3% %
accrual on
portfolio
Including:
Including:
1,046,293,741 89.1 3,660,065.3 0.35 1,042,633,67 703,497,750.1 82.8 0.53
receivables from 3,716,569.87 699,781,180.27
.78 0% 2 % 6.46 4 8% %
customers
Receivables from
118,955,466.0 10.1 118,955,466. 136,233,788.6 16.0
internal related 136,233,788.66
2 3% 02 6 5%
parties
1,174,356,331 100. 12,767,188. 1.64 1,161,589,14 848,838,662.3 100. 12,823,693.3 1.64
Total 836,014,968.93
.31 00% 83 % 2.48 1 00% 8 %
Bad debt provision accrual on single basis: RMB 9,107,123.51
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Ending balance
Name
Book balance Bad debt reserve Accrual ratio Accrual causes
BD bills 5,300,000.00 5,300,000.00 100.00% Have difficulty in collection
Changchun FAW Sihuan Engine
1,475,731.65 1,475,731.65 100.00% Have difficulty in collection
Manufacturing Co., Ltd
Wuxi Kipor Machinery Co., Ltd 1,220,384.74 1,220,384.74 100.00% Have difficulty in collection
Fujian Zhao’an Country Minyue
Bianjie Agricultural Machinery 1,111,007.12 1,111,007.12 100.00% Have difficulty in collection
Auto Parts Co., Ltd.
Total 9,107,123.51 9,107,123.51 -- --
Bad debt provision accrual on portfolio: RMB 3,660,065.32
In RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Within 6 months 1,030,687,162.07
6 months to one year 10,251,901.63 1,025,190.16 10.00%
1-2 years 2,289,715.54 457,943.11 20.00%
2-3 years 1,480,050.82 592,020.33 40.00%
Over 3 years 1,584,911.72 1,584,911.72 100.00%
Total 1,046,293,741.78 3,660,065.32 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB/CNY
Account age Book balance
Within one year (One year included) 1,159,894,529.72
Including: within 6 months 1,149,642,628.09
6 months to one year 10,251,901.63
1-2 years 8,589,951.39
2-3 years 3,034,031.36
Over 3 years 2,837,818.84
3-4 years 2,837,818.84
Total 1,174,356,331.31
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrual Written-off Other
reversal
Bad debt provision 12,823,693.38 314,240.74 257,736.19 12,767,188.83
Total 12,823,693.38 0.00 314,240.74 0.00 257,736.19 12,767,188.83
Important bad debt provision collected or switch back: nil
(3) Account receivable actual charge off in the Period
Nil
(4) Top 5 receivables at ending balance by arrears party
In RMB/CNY
Ending balance of account Ratio in total ending balance of Ending balance of bad debt
Name
receivable account receivables reserve
Bosch Diesel System 712,061,865.41 60.63%
Weifu Leader 53,820,937.93 4.58%
Custom 1 53,162,458.56 4.53%
Custom 2 47,813,407.24 4.07%
Weifu International Trade 45,964,164.41 3.91%
Total 912,822,833.55 77.72%
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other account receivables
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Item Ending balance Opening balance
Interest receivable 2,280,037.26 804,929.68
Dividend receivable 1,115,292,687.93 1,070,000.00
Other account receivables 286,829,482.06 248,140,027.06
Total 1,404,402,207.25 250,014,956.74
(1) Interest receivable
1) Category of interest receivable
In RMB/CNY
Item Ending balance Opening balance
Interest receivable of unified-borrowing &
188,929.48 149,876.70
unified-lending
Interest of fund occupation 2,091,107.78 655,052.98
Total 2,280,037.26 804,929.68
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
In RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
Weifu Precision Machinery 1,070,000.00
Zhonglian Electronic 191,200,000.00
Bosch Diesel System 861,097,612.75
Weifu Jinning 62,995,075.18
Total 1,115,292,687.93 1,070,000.00
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(3) Other account receivables
1) Other account receivables classification by nature
In RMB/CNY
Nature Ending book balance Opening book balance
Staff loans and petty cash 812,073.33 462,664.16
Balance of related party in the consolidate scope 266,747,069.72 216,403,060.04
Intercourse funds of unit 24,000,000.00 24,000,000.00
Protean Holdings Corp. equity disposal fund 10,654,092.89
Other 116,289.05 117,939.00
Total 291,675,432.10 251,637,756.09
2) Accrual of bad debt provision
In RMB/CNY
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt reserve Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2020 3,497,729.03 3,497,729.03
Balance of Jan. 1, 2020
—— —— —— ——
in the period
Current accrual 1,348,221.01 1,348,221.01
Balance on June 30, 2020 4,845,950.04 4,845,950.04
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
In RMB/CNY
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Account age Ending balance
Within one year (One year included) 196,018,701.27
Within 6 months 155,018,701.27
6 months to one year 41,000,000.00
1-2 years 95,552,695.72
2-3 years 96,835.11
Over 3 years 7,200.00
3-4 year 7,200.00
Total 291,675,432.10
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
In RMB/CNY
Amount changed in the period
Category Opening balance Ending balance
Accrual Collected or reversal Written-off Other
Bad debt provision 3,497,729.03 1,348,221.01 4,845,950.04
Total 3,497,729.03 1,348,221.01 4,845,950.04
Including the important bad debt provision switch back or collected in the period: nil
4) Other receivables actually written-off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
In RMB/CNY
Ratio in total ending
Ending balance of
Enterprise Nature Ending balance Account age balance of other
bad debt reserve
receivables
Balance of related party in
Weifu Leader 100,000,000.00 Within 6 months 34.28%
the consolidate scope
Balance of related party in
Weifu Tianli 41,000,000.00 6 months to 1 year 14.06%
the consolidate scope
Weifu Balance of related party in
76,194,454.00 Within 2 years 26.12%
Chang’an the consolidate scope
Balance of related party in
Weifu Mashan 28,552,615.72 Within 2 years 9.79%
the consolidate scope
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Troowin
Power System
Intercourse funds of unit 24,000,000.00 1-2 years 8.23% 4,800,000.00
Technology
Co., Ltd.
Weifu Balance of related party in
21,000,000.00 Within 2 years 7.20%
Schmidt the consolidate scope
Total -- 290,747,069.72 -- 99.68% 4,800,000.00
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
3. Long-term equity investments
In RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment for
1,595,262,165.92 1,595,262,165.92 1,731,814,008.11 1,731,814,008.11
subsidiary
Investment for
associates and 3,254,664,187.59 3,254,664,187.59 4,599,549,621.93 4,599,549,621.93
joint venture
Total 4,849,926,353.51 4,849,926,353.51 6,331,363,630.04 6,331,363,630.04
(1) Investment for subsidiary
In RMB/CNY
Changes in Current Period Ending
The invested Opening balance Provision for Ending balance balance of
Additional Negative
entity (book value) impairment Other (book value) depreciation
Investment Investment
loss reserves
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Weifu Jinning 178,639,593.52 178,639,593.52
Weifu Leader 460,113,855.00 460,113,855.00
Weifu Mashan 168,693,380.51 168,693,380.51
Weifu Chang’an 220,902,037.30 220,902,037.30
Weifu
International 32,849,254.85 32,849,254.85
Trade
Weifu ITM 167,000,000.00 -167,000,000.00
Weifu Schmidt 50,160,000.00 50,160,000.00
Weifu Tianli 234,941,100.00 234,941,100.00
Weifu Autocam 82,454,467.99 82,454,467.99
Weifu Electronic
53,832,280.23 53,832,280.23
Drive
SPV 82,228,038.71 30,448,157.81 112,676,196.52
Total 1,731,814,008.11 30,448,157.81 -167,000,000.00 1,595,262,165.92
(2) Investment for associates and joint venture
In RMB/CNY
Current changes (+, -)
Other
Ending
Add compr Othe
balance
ition Investment ehensi r Impai
Opening balance Capital Cash dividend or Ending balance of
Enterpri al gain/loss ve equit rment
(book value) reducti profit announced Other (book value) deprecia
se inve recognized incom y accru
on to issued tion
stme under equity e chan al
reserves
nt adjust ge
ment
I. Joint venture
II. Associated enterprise
Bosch
Diesel 3,276,853,986.35 574,193,295.98 1,722,195,225.51 2,128,852,056.82
System
Zhonglia
n
1,261,232,635.30 126,848,340.16 331,400,000.00 1,056,680,975.46
Automo
bile
Weifu 61,463,000.28 7,668,155.03 69,131,155.31
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Precisio
n
Machine
ry
Subtotal 4,599,549,621.93 708,709,791.17 2,053,595,225.51 3,254,664,187.59
Total 4,599,549,621.93 708,709,791.17 2,053,595,225.51 3,254,664,187.59
（3）Other note
4. Operating income and cost
In RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main business 2,175,655,866.58 1,548,552,431.71 1,895,457,557.71 1,303,140,646.02
Other business 160,606,506.50 137,936,247.87 197,016,902.53 168,830,868.68
Total 2,336,262,373.08 1,686,488,679.58 2,092,474,460.24 1,471,971,514.70
Information related to performance obligations: Nil
Information related to the transaction price assigned to the residual performance obligations:
At end of the reporting period, the amount of income corresponding to the performance obligation which has been signed but not yet
performed or has not been fully performed is RMB 0.00.
5. Investment income
In RMB/CNY
Item Current period Last Period
Investment income from holding transaction
2,287,308.59
financial asset
Investment income in subsidiaries 62,995,075.18
Investment income in joint ventures and
708,709,791.17 742,463,812.23
associated enterprises
Investment income of financial products 136,202,392.15 95,464,240.84
Total 907,907,258.50 840,215,361.66
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XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB/CNY
Item Amount Note
Gains/losses from the disposal of non-current asset -543,370.99
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 43,932,417.68
enterprise’s business)
Profit and loss of assets delegation on others’ investment or management 138,448,908.25
Held transaction financial asset, gains/losses of changes of fair values from transaction
financial liabilities, and investment gains from disposal of transaction financial asset,
258,157.65
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 items -2,840,670.20
Less: Impact on income tax 26,779,577.16
Impact on minority shareholders’ equity 1,706,169.11
Total 150,769,696.12 --
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
2. ROE and earnings per share
Earnings per share
Weighted average
Profits during report period Basic earnings per share Diluted earnings per
ROE
(RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the
7.80% 1.32 1.32
Company
Net profits belong to common stock stockholders of the
6.91% 1.17 1.17
Company after deducting nonrecurring gains and losses
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3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute
4. Other
Nil
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无锡威孚高科技集团股份有限公司 2020 年半年度报告全文
Section XII. Documents available for reference
I. Financial statement carrying the signatures and seals of person in charge of the company, principal of the
accounting works and person in charge of accounting organ (accounting Supervisor);
II. Original documents of the Company and manuscripts of public notices that disclosed in the website Juchao
(http://www.cninfo.com.cn) designated by CSRC in the report period;
III. Semi-Annual report published on China Securities Journal, Securities Times and Hong Kong Commercial
Daily during the Period.
BOD of Weifu High-Technology Group Co., Ltd.
Chairman:
Wang Xiaodong
25 August 2020
194
