WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
SEMI-ANNUAL REPORT 2024
August 2024
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section I. Important Notice, Contents and Interpretation
Board of Directors, Board of Supervisory, 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.
Yin Zhenyuan, Principal of the Company, and Feng Zhiming, person in charger of accounting
works, and Wu Junfei, person in charge of accounting organ (accounting principal) hereby confirm
that the Financial Report of Semi-Annual Report 2024 is authentic, accurate and complete.
All directors have attended the BoD Meeting for the Report deliberation.
The forward-looking statements with future plans involved in the Report do not constitute a
substantial commitment for investors. Investors and related parties should maintain sufficient risk
awareness and investors are advised to exercise caution of investment risks.
Possible risks and countermeasures for the future operation of the Company are described in the
“Discussion and Analysis of the Management” in the Report and investors are advised to check
them out.
The profit distribution plan that was deliberated and approved by the Board Meeting is: based on
total share capital of 971,986,293, distributed 2.20 yuan (tax included) bonus in cash for every 10-
share held by all shareholders, 0 share bonus issued (tax included) and no transfer of capital reserve
into share capital. When the profit distribution plan is implemented, if there is a change in the total
amount of shares entitled to profit distribution, on the basis of the total amount of shares entitled to
profit distribution on the equity registration date at the time of implementation of the distribution
plan, the distribution amount shall be adjusted according to the principle of unchanged distribution
proportion.
The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions, the Chinese version shall prevail.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Content
Section I. Important Notice, Contents and Interpretation .................................................................................. 2
Section II. Company Profile and Main Financial Indexes .................................................................................. 6
Section III. Discussion and Analysis of the Management .................................................................................... 9
Section IV. Corporate Governance........................................................................................................................ 22
Section V. Environmental and Social Responsibility ........................................................................................... 25
Section VI. Important Matters .............................................................................................................................. 31
Section VII. Changes in Shares and Particulars about Shareholders ................................................................ 40
Section VIII. Preferred Stock ................................................................................................................................ 46
Section IX. Corporate Bonds ................................................................................................................................. 47
Section X. Financial Report ................................................................................................................................... 48
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 designated
by CSRC during the reporting period;
III. The Semi-Annual report summary is published on China Securities Journal and Securities Times during the
reporting period.
IV. Place for preparation: Office of the BoD of the Company
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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.
Wuxi Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Bosch Refers to Robert Bosch Co., Ltd, ROBERT BOSCH GMBH
RBCD Refers to Robert Bosch Powertrain Ltd.
WFLD Refers to Wuxi Weifu Lida Catalytic Converter Co., Ltd.
WFJN Refers to Nanjing Weifu Jinning Co., Ltd.
WFTT Refers to Ningbo Weifu Tianli Turbocharging Technology Co., Ltd.
WFCA Refers to Wuxi Weifu CHANGAN Co., Ltd.
WFMA Refers to Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd.
WFTR Refers to Wuxi Weifu International Tarde Co., Ltd.
WFSC Refers to Wuxi Weifu Schmitter Powertrain Components Co., Ltd.
WFAM Refers to Wuxi Weifu Autocam Precision Machinery Co., Ltd.
WFDT Refers to Wuxi Weifu E-DRIVE Technologies Co., Ltd.
WFAS Refers to Wuxi Weifu Autosmart Seating System Co., Ltd.
WFLH Refers to Weifu Lianhua Automotive Parts（Fuzhou）Co., Ltd
SPV Refers to Weifu Holding ApS
IRD Refers to IRD Fuel Cells A/S
Borit Refers to Borit NV
WFQL Refers to Wuxi Weifu Qinglong Power Technology Co., Ltd.
VHIO Refers to VHIT S.p.A. SocietàUnipersonale
VHWX Refers to VHIT Automotive Systems(Wuxi) Co.Ltd
WFSS Refers to Weifu Zhigan(Wuxi) Technology Co., Ltd
Lezhuo Bowei Refers to Lezhuo Bowei Hydraulic Technology (Shanghai) Co., Ltd
WFEC Refers to Wuxi WFEC Catalysts. Co., Ltd.
WFPM Refers to Wuxi Weifu Precision Machinery Manufacturing Co., Ltd.
Zhonglian Electronics Refers to Zhonglian Automobile Electronics Co., Ltd.
Autolink Refers to Wuxi Chelian Tianxia Information Technology Co., Ltd.
Changchun Xuyang Refers to Changchun Xuyang Weifu Automobile components Technology Co., Ltd.
Guokai Metal Refers to Wuxi Guokai Metal Resources Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
The reporting period Refers to From January 1, 2024 to June 30, 2024
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section II. Company Profile and Main Financial Indexes
I. Company information
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 Chinese) 威孚高科
Foreign name of the Company (if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
Short form of foreign name of the Company (if applicable) WFHT
Legal representative Yin Zhenyuan
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Liu Jinjun Xu Kan
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 Web@weifu.com.cn Web@weifu.com.cn
III. Other information
1. Company contact information
Has the registered address, office address, postal code, website, email address, etc. of the Company changed during the reporting
period?
□ Applicable Not applicable
The registered address, office address, postal code, website, and email address of the Company remained unchanged during the
reporting period. Please refer to the 2023 Annual Report for details.
2. Information disclosure and location
Has the information disclosure and location changed during the reporting period?
□ Applicable Not applicable
The website and media name and website of the stock exchange where the Company disclosed its semi-annual report, and the
place of placement of the Company’s semi-annual report remains unchanged during the reporting period. Please refer to the 2023
Annual Report for details.
3. Other relevant information
Is there any change in other relevant information during the reporting period?
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
□ Applicable Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes No
Amount in current Amount in last Year-on-year
period period increase(+)/decrease(-)
Operation income (RMB) 5,694,233,552.72 6,129,649,047.40 -7.10%
Net profit attributable to shareholders of the listed
954,341,269.90 948,760,859.55 0.59%
Company(RMB)
Net profit attributable to shareholders of the listed
Company after deducting extraordinary gain and 975,076,832.34 830,878,251.37 17.35%
loss(RMB)
Net cash flows arising from operating activities (RMB) 887,892,317.37 1,089,961,237.42 -18.54%
Basic earnings per share (RMB/Share) 0.98 0.98 0.00%
Diluted earnings per share (RMB/Share) 0.98 0.98 0.00%
Weighted average ROE 4.84% 5.24% -0.40%
Ending balance of Ending balance of Year-on-year
current period last period increase(+)/decrease(-)
Total asset (RMB) 27,864,965,288.97 28,081,087,791.81 -0.77%
Net asset attributable to shareholders of listed Company
19,363,215,440.23 19,399,892,671.78 -0.19%
(RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net asset 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 asset disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.
2. Difference of the net profit and net asset 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 asset disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.
VI. Items and amounts of extraordinary gain and loss
Applicable □Not applicable
In RMB
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Item Amount Note
Gain/loss from the disposal of non-current asset (including the write-off that accrued for impairment of
5,473,643.37
asset)
Governmental grants reckoned into current gain/loss (except for those with normal operation business
concerned, and conform to the national policies & regulations and are enjoyed at a fixed basis 25,710,446.36
according to certain standards and continuously affect the gain/loss of the Company)
Except for effective hedging business related to the normal operation of the Company, the fair value
gain and loss arising from the holding of financial asset and financial liability by non-financial
-105,941,910.61
enterprises, as well as the gain and loss arising from the disposal of financial asset and financial
liability
Gain/loss of asset delegation on others’ investment or management 37,850,294.00
Gain/loss from debt reorganization -284,132.56
Other non-operating income and expenditure except for the aforementioned items 5,057,475.05
Receivables and contract asset that have undergone separate impairment testing shall have their
5,343,622.79
impairment provisions reversed
Accounts receivable collected in the current period while written off in previous years 10,418.17
Less: Impact on income tax -6,351,104.63
Impact on minority shareholders’ equity (post-tax) 306,523.64
Total -20,735,562.44 --
Specific information on other items of gain and loss qualified the definition of extraordinary gain and loss
□Applicable Not applicable
The Company does not have other items of gain and loss qualified the definition of extraordinary gain and loss
Information on the definition of extraordinary gain and loss that listed in the Q&A Notice No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Gain and Loss as the recurring gain/loss
□Applicable Not applicable
The Company does not have any extraordinary gain and loss listed under the Q&A Notice No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Gain and Loss defined as recurring gain/loss
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section III. Discussion and Analysis of the Management
I. Major Business of the Company within the reporting period
(I) Main business engaged by the Company
The main business of the Company is the research and development, production and sales of core automotive parts, and currently
has four business segments, including energy conservation and emission reduction, green hydrogen energy, intelligent electric,
industrial and other. During the reporting period, the main products sold were diesel fuel injection system, exhaust aftertreatment
system, air intake system, core parts of fuel cells, core parts of electric drive systems, core parts of thermal management systems,
cabin core parts, core parts of brake systems, etc.
1. Diesel fuel injection system, including high pressure oil pump, high pressure oil rail, injector, filter and other products, widely
used in diesel engines of all levels of power, supporting various trucks, buses, construction machinery, marine, agricultural
machinery, generator sets, and can meet the national standard VI, off-road stage IV emission regulations, leading in the product
variety, production scale, market share. While doing a good job in supporting domestic engines, some products are exported to the
Americas, Southeast Asia, the Middle East and other regions.
2. Exhaust aftertreatment system, including diesel purifier, gasoline purifier, natural gas purifier, muffler, catalyst and other
products, can meet the national VI standard, off-road stage IV emission regulations, with leading technical level, market scale and
production capacity in China, widely used in traditional power & plug-in hybrid passenger vehicles, commercial vehicles, off-road
machinery and other fields, and can provide strong support for product upgrading and renewal of OEMs.
3. Air intake system, including diesel supercharger, gasoline supercharger, natural gas supercharger and other products, can meet
the national VI, off-road stage IV emission regulations, with the scope of application covering commercial vehicles, traditional
power & plug-in hybrid passenger vehicles, construction machinery, agricultural machinery, generator sets and other fields, and
can support the major domestic OEMs and automobile manufacturers .
4. Core parts of fuel cells, including membrane electrode, bipolar plate (graphite, metal), catalyst and BOP critical parts (such as
valves, pumps, air compressor critical parts) and other products, mainly support domestic and foreign hydrogen fuel cell stack and
system manufacturers and energy storage enterprises.
5. Core parts of electric drive systems, including motor shaft, end cover, water jacket and other products, mainly support domestic
and foreign new energy passenger car enterprises or electric drive system manufacturers.
6. Core parts of thermal management systems, including electronic oil pump, electronic water pump, thermostat and other products,
mainly support domestic and foreign new energy passenger vehicles, commercial vehicle enterprises.
7. Cabin core parts, including car seat assembly, seat skeleton, electric long slide, shock absorber and other products, mainly
support domestic mainstream commercial vehicles, passenger car enterprises.
8. Core parts of brake systems, including mechanical vacuum pump and other products, mainly support domestic and foreign
mainstream passenger car enterprises.
(II) Business Model
The Company adheres to the business philosophy of "producing high-quality products, establishing a renowned brand, and
achieving shared value growth." It operates under a model where the parent Company provides centralized management while
subsidiaries handle decentralized production. The parent Company is responsible for formulating strategic development plans and
business objectives. It also oversees the subsidiaries in areas such as finance, major personnel management, core raw materials,
quality control, and technology research and development. The subsidiaries manage production based on market orders, ensuring
uniform product quality, timely understanding of customer needs, logistics cost savings, timely product supply, and improved
economic efficiency for the Company.
(III) Industry Development
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
The Company operates in the automotive parts manufacturing industry. In the first half of 2024, the domestic economy showed a
moderate recovery. Against this backdrop, the Chinese automotive market experienced overall growth driven by new energy
vehicles and exports. A new round of price wars in the first quarter caused market hesitation and significant volatility, showing a
"V" shaped trend. In the second quarter, the release of new technologies and models, along with the introduction of the national
vehicle replacement policy, spurred local and corporate promotional activities, leading to a steady increase in market demand and
sales. From January to June 2024, automobile production and sales reached 13.891 million and 14.047 million units respectively,
growing by 4.9% and 6.1% year-on-year. Exports continued to grow rapidly, significantly contributing to the overall market
growth, with 2.793 million units exported, a 30.5% increase year-on-year.
1. Commercial Vehicle Market
In 2024, the commercial vehicle market started strong, aided by the vehicle replacement policy, the gradual digestion of previously
overdrawn demand, structural growth in natural gas heavy trucks, and exports. Overall performance was better than the same
period last year. However, issues such as insufficient domestic demand, sluggish real estate investment, slow infrastructure
construction, and a bleak domestic freight industry posed significant growth pressures. Sales declined month-on-month in the
second quarter. From January to June 2024, production and sales of commercial vehicles reached 2.005 million and 2.068 million
units respectively, increasing by 2.0% and 4.9% year-on-year, with exports reaching 454,000 units, a 25.7% increase year-on-year.
From a breakdown by vehicle type, in the period from January to June 2024, truck production and sales were 1.764 million and
1.824 million units, respectively, representing year-on-year increases of 1.4% and 4.4%. Bus production and sales were 241,000
and 244,000 units, respectively, representing year-on-year increases of 6.4% and 9.3%.
From a breakdown by vehicle type, all truck segments saw positive growth, with medium trucks showing the most significant
increase. Heavy trucks sold 504,000 units, up 3.3% year-on-year; medium trucks sold 70,000 units, up 20.5%; light trucks sold
971,000 units, up 4.2%; and mini trucks sold 279,000 units, up 3.6%. In the bus segments, large and medium-sized buses also
showed rapid growth. Large buses sold 32,000 units, up 33.9% year-on-year; medium buses sold 19,000 units, up 30%; and light
buses sold 193,000 units, up 4.5%.
2. Passenger Vehicle Market
In the first half of 2024, stimulated by the vehicle replacement policy, local subsidies, the introduction of new models, price
promotions, and strong demand for new energy passenger vehicles and exports, the market maintained steady growth. From
January to June 2024, production and sales of passenger vehicles reached 11.886 million and 11.979 million units, increasing by
5.4% and 6.3% year-on-year, with exports reaching 2.339 million units, a 31.5% increase year-on-year. Domestic brands saw
significant growth in both exports and the new energy vehicle market, achieving a market penetration rate of 61.9%.
3. New Energy Vehicle Market
The policy supporting vehicle replacement, the launch of a new round of new energy vehicle promotions, and trends such as
"equal rights for oil and electricity" and "electricity being cheaper than oil" further boosted the penetration of new energy vehicles.
From January to June 2024, production and sales of new energy vehicles reached 4.929 million and 4.944 million units, increasing
by 30.1% and 32% year-on-year, with a market share of 35.2%. Sales of pure electric vehicles were 3.019 million units, up 11.6%
year-on-year; plug-in hybrid vehicles were 1.922 million units, up 85.2%, becoming the main driver of growth in the new energy
vehicle market; and fuel cell vehicles were 3,000 units, up 7.1%.
4. Off-road Market
In the first half of 2024, demand for infrastructure and real estate did not significantly improve. However, favorable factors such as
the vehicle replacement policy and the initiation of equipment renewal cycles in regions like Shandong and Hainan improved
domestic demand. Conversely, overseas demand cooled, increasing downward pressure on exports. Agricultural machinery sales
declined due to multiple factors including grain prices, emission upgrades, subsidy levels, and international conditions. From
January to June 2024, sales of diesel engines for construction machinery totaled 442,000 units, down 7.4% year-on-year, and for
agricultural machinery totaled 826,000 units, down 4.2% year-on-year.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(Note: The above industry data is sourced from the China Association of Automobile Manufacturers and the China Internal
Combustion Engine Industry Association)
(IV) Company Operations During the Reporting Period
Since the beginning of this year, the Company has diligently implemented its annual work goals and actively addressed industry
opportunities and challenges. During the reporting period, the Company achieved operating income of 5.694 billion yuan, a
decrease of 7.10% year-on-year, while net profit attributable to shareholders of the listed Company was 954 million yuan, an
increase of 0.59% year-on-year.
Main Activities During the Reporting Period:
1. Seizing market opportunities, traditional and emerging businesses developed synergistically.
Energy-saving and Emission Reduction Products: Post-treatment system products seizing rapid growth opportunities in hybrid
passenger vehicles and natural gas commercial vehicles, sales of gasoline purifiers exceeded 1.87 million units, up 48% year-on-
year; sales of natural gas purifiers reached 55,000 units, up 384% year-on-year, post-treatment system products secured projects
from several joint venture brands and leading passenger vehicle customers, achieving mass production for multiple commercial
vehicle projects, and steadily increasing market share in both passenger and commercial vehicle markets. Air intake system
products: Gasoline turbocharger sales exceeded 310,000 units, up 308% year-on-year, maintaining rapid growth, with major
passenger vehicle customer projects gradually entering mass production. Sales of four-cylinder diesel turbochargers increased by
over 12% year-on-year, continuing to lead the industry, while natural gas turbocharger sales doubled year-on-year.
Green Hydrogen and Smart Electric Products: Core components of hydrogen fuel cells, such as metal bipolar plates, have
completed mass delivery for domestic customer projects. Key BOP products, including thermostats, proportional valves, and
electronic water pumps, have secured multiple customer projects. PEM (proton exchange membrane) water electrolysis hydrogen
production systems and equipment have achieved project cooperation with some customers in scientific research and
demonstration. Radar products have accelerated several intelligent driving customer projects, with client testing and new sample
development actively underway. Electronic oil pump products have achieved mass production supply for multiple new energy
passenger vehicle projects, with capacity expansion accelerating. Existing commercial vehicle customer projects for automotive
seats remain stable, with breakthroughs achieved in passenger vehicle projects. The Fuzhou Lianhua base has been completed,
with key customer projects gradually entering mass production.
2. Accelerating product iteration and upgrading, increasing R&D efforts.
Energy-saving and Emission Reduction Products: Completed the A-sample development of high-pressure fuel pumps and injectors
for ultra-high-pressure electronic control fuel injection systems, as well as engine performance matching tests for key customers.
Developed the B-sample for natural gas dual-fuel injectors and pressure regulation modules, and completed the initial round of
trial production. Finished performance tests for methanol dual-fuel in-cylinder direct injection systems and initiated pre-research
on methanol single-fuel in-cylinder direct injection technology and hydrogen engine injection technology. Developed multiple
post-treatment products for hybrid passenger vehicles and export projects, expanded product development into commercial and
off-road sectors, and advanced methanol engine product development. Conducted pre-research on technologies for products
meeting future emission standards. Accelerated the development of turbocharger products for gasoline hybrid passenger vehicles
and diesel/natural gas commercial vehicles, with key customer projects reaching mass production. Launched methanol engine
turbocharger projects in the market and actively promoted the use of 48V electric turbochargers in customer pre-research projects.
Green Hydrogen and Smart Electric Products: Completed B-sample development for 35 MPa pressure relief valves; continued to
expand applications for low-pressure hydrogen valve products and completed C-sample development for exhaust valves.
Continued development and industrialization of key BOP components, including electronic water pumps, thermostats, and
hydrogen circulation pumps. Achieved production validation for alloy catalysts and multiple rounds of production validation for
fuel cell membrane electrode production lines, while establishing project interfaces for single-cell batteries. Completed the overall
design of the 100 kW PEM water electrolysis hydrogen production system platform and began integrating and assembling various
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
modules. Finished functional development and customer validation for barrier radar products and continued developing and
building customer projects and industrialization capabilities for 4D imaging radar, focusing on cost reduction.
3. Strengthening strategic planning and execution, and continuously promoting new business investments and cooperation.
Strategic Planning: Implement and refine the mid-term review and improvement plan of the 14th Five-Year Plan. Advance in-
depth planning for new business areas such as VH and hydraulic systems. Progress with the mid- to long-term planning, review,
and updating of hydrogen fuel cell strategies. Promote the business planning for the Huishan Intelligent Industrial Park. Conduct
market research and analysis on hydrogen storage, and actively advance annual strategic research on automotive seats, humanoid
robots, and air suspension components. Strengthen local government collaboration on radar and hydrogen storage projects.
Investment and Cooperation: Completed the signing of an investment cooperation agreement with Germany's Voith Group for
high-pressure hydrogen storage. Finalized the spin-off of Weifu Intelligent Sensing business and established an independent joint
venture. Continued the development of three major global hydrogen energy bases, investing in the R&D and capacity expansion of
IRD's European and North American bases, as well as Borit’s European base. Focused on enhancing domestic capabilities of the
WFQL joint venture and constructing the hydrogen energy industrial park in the Asia-Pacific region. Introduced partners for the
automotive seat business and established a new joint venture. Collaborated with WFEC shareholders to form a new joint venture,
extending the value chain of precious metal compounds.
4. Strengthen the quality operation system and continue advancing intelligent manufacturing.
Develop and promote a comprehensive annual quality management roadmap covering five areas: quality systems, quality
prevention, process quality, problem-solving, and quality team building, with 16 sub-items. Establish an external audit
improvement experience repository and optimize updates to the quality manual. Promote the comprehensive application of special
characteristics and development quality valves in 22 development projects. Plan and complete special characteristics re-
identification and re-control evaluations for 13 business units/subsidiaries and 22 core products. Enhance and train manufacturing
quality engineers on quality tools and methods. Improve quality improvement information sharing and communication. Complete
the iteration of the FMS tooling management system and pilot its launch. Expand the application of the TMS tool management
system and WMS warehousing management system. Continuously optimize and promote the EMS energy management platform,
actively advancing energy-saving and consumption-reduction measures. Complete the design of the digital factory project business,
application, and data architecture for WFAC. Progress is smooth for engineering projects such as the R&D building, Phase VI of
the 103 plot factory, the hydrogen energy industrial park, and the Huishan Chang'an industrial park, which are advancing as
planned.
5. Strengthening Operational Quality and Enhancing Management Efficiency
Refine the monitoring and analysis dimensions for business lines and departments, and enhance tracking of key products and
projects. Standardize the functional responsibilities of business units. Develop and implement management solutions for new
department control models, organizational functions, and system processes. Optimize financial procedures, update relevant
systems and processes, identify business risks, and improve process efficiency. Strengthen financial risk management by
addressing capital needs and current management status, and continue advancing product redemption. Optimize procurement
management and core operational capabilities, and continue developing the SRM procurement platform. Enhance the analysis and
disposal of slow-moving inventory, creating specialized optimization projects for such stock. Continuously improve risk
management capabilities, strengthen the review, control, and response to risk issues at all levels, provide various internal control
management training, and enhance the risk management awareness and skills of key personnel. Recruit talent for strategic new
businesses and key projects, optimize and adjust the talent structure, and improve talent fit. Implement a performance management
information system to align individual performance goals with organizational performance. Promote international talent
development by planning and establishing international dispatch policies, optimizing international talent competency models,
setting talent selection standards, and advancing specialized training.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
II. Analysis on Core Competitiveness
1. Industry and brand advantages. Established in 1958, with more than sixty years of development, the Company has become a
renowned manufacturer of auto parts in China and has established long-term and stable cooperation with major domestic OEMs
and vehicle manufacturers. The existing core auto parts products such as automotive fuel injection system, exhaust gas after-
treatment system, air intake system and core parts of hydrogen fuel cell have strong market competitiveness and high market
shares. The Company is a leading enterprise in the internal combustion engine industry of China and ranked 35th on the 2023 Top
100 Chinese Automotive Parts Enterprises. The subsidiary companies of the Company, WFLD and WFTT, were respectively
awarded the seventh and eighth batches of national level manufacturing industry single champion enterprises, while WFTT and
WFJN were respectively awarded the national level specialized and innovative “Little Giant” enterprises.
2. Technology and product advantages. The Company is a national high-tech enterprise with scientific research platforms such as
National Enterprise Technology Center, National High Technology Research and Development Program Achievement
Industrialization Base, Postdoctoral Research Station, Jiangsu Provincial Postgraduate Workstation, as well as several provincial
engineering technology research centers, provincial engineering laboratories and other R&D institutions, which mainly focus on
fuel injection system for vehicles, exhaust gas after-treatment system, air intake system, hydrogen fuel cell, intelligent network,
thermal management system and other businesses for technological innovation and product development. The Company has
acquired a number of key core technologies, with the technical indicators of its main products at the leading level in the industry.
In recent years, the Company has made key strategic layout in the fields of green hydrogen energy, intelligent electric power
industries and other fields, established the Institute of New Energy and Netlink Technology, and formed product technology
research and development capabilities in hydrogen fuel cell core components, research and development capabilities for renewable
energy hydrogen production, core parts of E-drive, thermal management system components, intelligent perception modules,
hydraulic systems, core components as well as other components.
3. The Company has implemented Weifu Production System (WPS) with lean concept and established an overall process quality
management system with relatively strong manufacturing, quality assurance, cost control and product delivery capabilities. With
the focus on smart manufacturing, the Company has continued to build a smart factory with Weifu characteristics and promote the
application of big data analysis and AI application, which can strongly support the future business development of the Company.
The Company’s high-pressure common rail pump intelligent manufacturing demonstration factory has been selected for the 2023
list of intelligent manufacturing demonstration factories announced by the Ministry of Industry and Information Technology
4. Marketing and service advantages. The Company features a stable, professional and experienced marketing team, which can
provide targeted support and services based on customer demands, as well as cordial customer relationships. With regard to long-
term strategic customers, the Company has established a four-in-one marketing coordination group consisting of responsible
leaders, key account managers, marketing departments and business divisions, and regular visits among the management of the
companies to promote communication and cooperation. The Company has a relatively complete after-sales service system, and has
built an after-sales service network, intelligent service platform, and set up special maintenance technical service stations
nationwide to regularly train end-users in the use of maintenance and fault analysis and judgment, so as to provide customers with
fast, timely and professional all-round after-sales services.
5. Talent team advantages. The management team of the Company has extensive experience in the auto parts industry with
excellent industry reputation. The Company attaches importance to the growth of employees as well as the development of core
talents. With years of accumulation, the Company has deposited a group of professional and high-quality management and
technical talents and established a reasonable talent echelon, which provides a strong guarantee of human resources for the long-
term and stable development of the Company. The human resource management system of the Company is relatively
comprehensive, and the continuously optimized human resource management system has provided a fair platform for career
development of employees to realize their values. The Company attaches importance to the service and care for employees, and
13
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
aims to enhance the service experience of employees through the construction of employee self-help platform to create a working
environment with warmth and a sense of belonging.
6. International cooperation advantages. The Company is committed to the core automotive parts industry and has long been
cooperating with strategic partners at home and abroad in depth. The Company has been cooperating with industry giant Robert
Bosch Compan since 1984, and has established a long-term and stable cooperation relationship with Bosch and continuously
expanded cooperation in new business areas, and the cooperation model between the two sides has become an industry model.
Meanwhile, the Company has built joint ventures with Autocam in the United States, and cooperates closely in the field of high-
end precision manufacturing. By long-term cooperation with renowned enterprises in Europe and the United States, the Company
has cultivated a group of middle and senior management and technical personnel with international communication abilities,
international visions and familiarity with international standards, and has mastered R&D process design, quality control and
production management capabilities with international advanced levels, which has promoted favorable development of the
business of the Company as well as international business and market development.
7. Excellent Corporate Culture. The Company has established a unique corporate culture system with Weifu’s distinctive features,
characterized by "Virtue" and "Wisdom." These cultural pillars guide and drive the Company’s strategic planning. “Virtue”
encompasses the principles of entrepreneurship, foundational work, and business growth, while “Wisdom” represents
breakthroughs, innovation, and development, integrating these principles into the Company's management practices. The Virtue-
Wisdom culture has become the growth gene of Weifu, with the belief that “Esteemed for Virtue and Wisdom, Trusted by Users”
standing as a lasting conviction and unchanging declaration. Moving forward, the Company will continue to drive better living
through “Virtue and Wisdom”, adhering to the core values of “Focus, Innovation, Responsibility, and Integration,” and promoting
the spirit of “Doing Practical Work, Taking Initiative, Cooperating Well, and Striving to be First” to support the vision of
becoming “Weifu: A Century-Old Expert in Automotive Core Components”.
III. Analysis of the Main business
Overview
Refer to the relevant content of “1. Major Business of the Company within the reporting period”.
Year on year changes in major financial data
In RMB
Amount in current Amount in last Year-on-year
Reason
period period increase(+)/decrease(-)
Operation income 5,694,233,552.72 6,129,649,047.40 -7.10%
Operation cost 4,620,552,753.54 5,163,871,731.26 -10.52%
Sales expense 113,227,996.84 103,031,481.40 9.90%
Administration expenses 330,939,659.31 299,195,729.59 10.61%
Mainly due to decrease in
Financial expenses 8,211,838.63 38,462,182.45 -78.65%
loan interest
Income tax expense 23,703,720.56 29,332,279.74 -19.19%
R&D expenses 302,233,285.34 351,887,038.12 -14.11%
Net cash flows arising from
887,892,317.37 1,089,961,237.42 -18.54%
operating activities
Net cash flows arising from
174,939,323.78 244,240,067.48 -28.37%
investing activities
Net cash flows arising from
-1,238,558,151.40 -1,253,388,210.29 1.18%
financing activities
Mainly due to a year-on-year
Net increase of cash and decrease in net cash flows
-187,685,655.02 110,347,069.15 -270.09%
cash equivalents from operating and investing
activities
14
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Significant changes in the composition or source of profits of the Company during the reporting period
□ Applicable Not applicable
There have been no significant changes in the composition or source of profits of the Company during the reporting period.
Composition of operation income
In RMB
Amount in current period Amount in last period Year-on-year
Ratio in operation Ratio in operation increase(+)/decrease(-
Amount Amount )
revenue income
Total operation
5,694,233,552.72 100% 6,129,649,047.40 100% -7.10%
income
By industry
Automotive
5,602,366,875.45 98.39% 6,052,163,689.76 98.74% -7.43%
components
Other business 91,866,677.27 1.61% 77,485,357.64 1.26% 18.56%
By product
Automotive fuel
2,389,384,035.29 41.96% 3,071,891,040.17 50.12% -22.22%
management system
Automotive post-
1,788,451,511.09 31.41% 2,088,560,385.02 34.07% -14.37%
processing system
Air intake system 501,982,916.15 8.82% 281,223,149.82 4.59% 78.50%
Other automotive
922,548,412.92 16.20% 610,489,114.75 9.96% 51.12%
components
Other business 91,866,677.27 1.61% 77,485,357.64 1.26% 18.56%
By region
Domestic 4,908,641,107.58 86.20% 5,232,339,300.50 85.36% -6.19%
Foreign 785,592,445.14 13.80% 897,309,746.90 14.64% -12.45%
The industries, products, regions or sales model accounting for over 10% of the Company’s operation income or operation profit
Applicable □ Not applicable
In RMB
Year-on-year Year-on-year
Gross Year-on-year
Operation increase(+)/decrease increase(+)/decrease
Operation cost profit increase(+)/decrease
income (-) of operation (-) of gross profit
ratio (-) of operation cost
revenue ratio
By industry
Automotive 5,602,366,875. 4,590,170,191.1 18.07
-7.43% -10.65% 2.95%
components 45 2 %
By product
Automotive
fuel 2,389,384,035. 1,832,154,586.0 23.32
-22.22% -26.49% 4.45%
management 29 9 %
system
Automotive
post- 1,788,451,511. 1,532,494,804.8 14.31
-14.37% -19.29% 5.22%
processing 09 4 %
system
Air intake 22.44
501,982,916.15 389,330,715.88 78.50% 83.83% -2.25%
system %
Other
automotive 922,548,412.92 836,190,084.31 9.36% 51.12% 56.50% -3.12%
components
By region
Domestic 4,816,774,430. 3,890,259,244.0 19.24
-6.56% -9.92% 3.02%
sales 31 0 %
10.91
Foreign sales 785,592,445.14 699,910,947.12 -12.45% -14.50% 2.14%
%
15
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
In case of changes in the statistical caliber of principal business data in the reporting period, the Company will refer to the
principal business data after adjustment in the latest period:
□Applicable Not Applicable
IV. Analysis of the non-main business
Applicable □Not applicable
In RMB
Ratio in
Amount Cause description Whether be sustainable
total profit
The joint ventures RBCD and
Investment earnings mainly form
Zhonglian Electronics have stable
the two joint ventures (RBCD and
Investment earnings 769,668,621.04 75.07% production and operation , so the
Zhonglian Electronics) with stock
investment returns can be
participated by the Company
sustained and stable
Gain/loss of fair Mainly refers to the fair value
-105,956,110.61 -10.33%
value changes changes of trading financial asset
Mainly refers to the provision of
Asset impairment -66,803,279.10 -6.52%
inventory impairment
Non-operating
700,418.67 0.07%
income
Non-operating
3,361,815.35 0.33%
expense
V. Asset and liability analysis
1. Major changes of asset composition
In RMB
End of current period End of last period
Ratio
Ratio in Ratio in changes Note of major changes
Amount total Amount total (+/-)
asset asset
Monetary funds 2,725,960,523.49 9.78% 2,274,771,699.14 8.10% 1.68%
Account receivable 3,712,958,646.89 13.32% 3,857,539,958.20 13.74% -0.42%
Inventory 1,891,829,597.61 6.79% 2,068,533,030.94 7.37% -0.58%
Investment real
45,905,888.45 0.16% 46,926,716.49 0.17% -0.01%
estate
Long-term equity
5,894,271,112.10 21.15% 5,947,633,507.07 21.18% -0.03%
investment
Fixed asset 3,958,946,658.33 14.21% 3,969,574,102.87 14.14% 0.07%
Construction in
682,829,406.56 2.45% 564,605,931.90 2.01% 0.44%
progress
Right-of-use asset 45,893,971.65 0.16% 48,832,472.85 0.17% -0.01%
Short-term
367,616,899.38 1.32% 838,889,557.51 2.99% -1.67% Repay of borrowings
borrowings
Contract liability 81,968,819.02 0.29% 77,686,881.24 0.28% 0.01%
Long-term Reclassify long-term loans
100,000,000.00 0.36% 299,800,000.00 1.07% -0.71%
borrowings due within one year
Lease liability 34,393,469.46 0.12% 37,733,196.51 0.13% -0.01%
Dividend receivable from
Other receivables 1,795,554,563.56 6.44% 919,684,126.81 3.28% 3.16%
participating companies
Including: dividends
872,701,558.93 3.13% 0.00% 3.13%
receivable
2. Major foreign asset
Applicable □Not applicable
16
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
The
proportion of Is there a
Specific
Cause of Control measures to overseas asset significant
content Asset scale Location Operation model Revenue
formation ensure asset security to the impairment
of asset
Company’s risk?
net asset
The Company will fully
A wholly-owned pay attention to
Business subsidiary of the changes in the industry
combinations Company, and market, strengthen
RMB
IRD not under Denmark engaged in R&D, corporate governance, Nil 2.36% No
456,430,600
common production, and personnel management,
control sales of fuel cell financial management,
components audit supervision, and
performance evaluation
The Company will fully
A wholly-owned pay attention to
Business subsidiary of the changes in the industry
combinations Company, and market, strengthen
Borit RMB
not under Belgium engaged in R&D, corporate governance, Nil 1.16% No
NV 224,164,400
common production, and personnel management,
control sales of fuel cell financial management,
components audit supervision, and
performance evaluation
The Company will fully
A wholly-owned pay attention to
Business subsidiary of the changes in the industry
combinations Company, and market, strengthen
RMB
VHIO not under
686,762,400
Italy engaged in R&D, corporate governance, RMB 5,249,100 3.55% No
common production, and personnel management,
control sales of fuel cell financial management,
components audit supervision, and
performance evaluation
3. Asset and liability measured by fair value
Applicable □ Not applicable
In RMB
Accumulat
Changes of Devaluati Amou
ive
Amount at fair value on of Amount of nt of
changes of Other Amount at
Items the beginning gain/loss in withdraw purchase in sale in
fair value changes (+,-) period-end
period current ing in the the period the
reckoned
period period period
into equity
Financial asset
1.Trading
financial
asset(exclud - -
3,195,837,26 1,124,500,00 2,101,317,98
ing 106,008,94 2,113,010,34
5.02 0.00 2.20
derivative 1.62 1.20
financial
asset)
2.Other
equity 677,790,690. 677,790,690.
instrument 00 00
investment
3.Receivabl 1,661,749,94 199,857,000. 1,861,606,94
e financing 9.46 44 9.90
Subtotal of - -
5,535,377,90 1,124,500,00
financial 106,008,94 1,913,153,34 4,640,715,62
4.48 0.00
asset 1.62 0.76 2.10
- -
5,535,377,90 1,124,500,00 4,640,715,62
Above total 106,008,94 1,913,153,34
4.48 0.00 2.10
1.62 0.76
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liability
Other changes: Maturity redemption
Whether there have major changes on measurement attributes for main asset of the Company in the reporting period or not
□ Yes No
17
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
4. The asset rights restricted till end of the reporting period
In RMB
Item Book value at period-end Restriction reason
Monetary funds 128,231,135.19 Cash deposit paid for bank acceptance
Monetary funds 7,673,250.00 IRD performance bond
Monetary funds 204,620.00 Cash deposit for Mastercard
Monetary funds 4,000.00 ETC freezing
Receivables financing 897,650,012.34 Notes pledge for bank acceptance
Total 1,033,763,017.53
VI. Analysis on investment
1. Overall status
Applicable □Not applicable
Investment amount during the reporting period (yuan) Investment amount for the same period last year (yuan) Change
667,248,929.69 754,371,270.53 -11.55%
2. Significant equity investments obtained during the reporting period
□Applicable Not applicable
3. Major non-equity investment in progress in the reporting period
□ Applicable Not applicable
4. Financial asset investment
(1) Securities investment
Applicable □Not applicable
In RMB
Cumul
Book Curre
Account Current ative Curr Profit Book
Varie Code Short value at nt Cap
Initial ing gain/loss fair ent and loss value at Accou
ty of of form of the purch ital
investme measure of fair value sales in the the end nting
securi securi securiti beginning ase Sou
nt cost ment value change amo Reportin of the subject
ties ties es of the amou rce
model changes s in unt g Period period
period nt
equity
Dome
stic
Tradin
and Measure - - Ow
6008 199,208,0 76,756,71 42,599,3 g
foreig SNAT d by fair 34,157,3 34,157,3 n
41 00.00 6.00 28.00 financi
n value 88.00 88.00 fund
al asset
stock
s
Dome
stic
Miracl Tradin
and Measure - - Ow
0020 e 69,331,50 71,073,90 53,411,4 g
foreig d by fair 17,662,5 17,662,5 n
09 Autom 0.00 0.00 00.00 financi
n value 00.00 00.00 fund
ation al asset
stock
s
Dome 6014 Guolia 12,000,00 Measure 1,084,000 - - 964,000. Tradin Ow
stic 56 n 0.00 d by fair .00 120,000. 120,000. 00 g n
18
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
and Securit value 00 00 financi fund
foreig ies al asset
n
stock
s
- -
280,539,5 148,914,6 96,974,7
Total -- 51,939,8 0.00 0.00 0.00 51,939,8 -- --
00.00 16.00 28.00
88.00 88.00
Disclosure date of 2012-03-24
securities investment
approval of the Board 2013-06-04
(2) Derivative investment
□ Applicable Not applicable
There are no derivative investments during the reporting period.
5. Application of raised proceeds
□ Applicable Not applicable
There is no application of raised proceeds during the reporting period.
VII. Sales of major asset and equity
1. Sales of major asset
□ Applicable Not applicable
No major asset was sold during the reporting period.
2. Sales of major equity
□ Applicable Not applicable
VIII. Analysis of the main controlling and participating companies
Applicable □ Not applicable
Main subsidiary and participating enterprises with over 10% influence on net profit of the Company
In RMB
Company Main Register Operating Operating
Type Total asset Net asset Net profit
name business capital income profit
Exhaust
gas post- 502,596,300. 5,954,348,308.7 3,049,686,246. 1,846,296,992. 259,367,992.7 242,294,718.1
WFLD Subsidiary
processin 00 7 97 48 6 6
g system
Automoti
ve fuel 346,286,825. 1,592,580,682.7 1,209,485,960. 358,340,142.2
WFJN Subsidiary 63,295,360.67 51,211,227.09
injection 80 1 30 0
system
Equity Automoti
USD
participati ve fuel 16,776,977,098. 7,683,225,813. 5,271,654,599. 1,139,505,226. 1,100,633,775.
RBCD 382,500,000.
on injection 20 82 19 87 00
00
enterprise system
Zhonglia Equity
Gasoline
n participati 600,620,000. 9,684,138,777.5 8,345,432,001. 1,257,109,884. 1,254,847,847.
system 17,135,271.43
Electroni on 00 6 34 12 50
products
cs enterprise
Subsidiary acquired and disposed in the reporting period
Applicable Not applicable
Corporate name Ways of acquiring and The impact on overall production, operation, and performance
19
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
disposing of subsidiaries
during the reporting
period
The Company is mainly engaged in the research and development,
Weifu Lianhua production, and sales of automotive components and intelligent onboard
Automotive Parts Investment establishment equipment. The establishment of this subsidiary has no significant impact
（Fuzhou）Co.，Ltd on the overall production, operation, and performance of the Company
during the reporting period.
The Company is mainly engaged in the research and development,
Weifu Zhigan(Wuxi) production, and sales of intelligent onboard equipment. The establishment
Investment establishment
Technology Co., Ltd of this subsidiary has no significant impact on the overall production,
operation, and performance of the Company during the reporting period.
Description of major equity participation enterprises:
The year-on-year increase in net profits of Weifu Lida is mainly due to the optimization and improvement of profitability, the
reduction of precious metal procurement costs, the enjoyment of value-added tax input deduction preferential policies, and the
increase in investment income; The significant year-on-year decrease in net profit of Weifu Jinning is mainly due to the impact of
receiving government compensation for demolition in the same period of 2023. The main reason for the decrease in RBCD's
operating revenue and net profit is due to the impact of demand in the commercial vehicle market, resulting in a year-on-year
decrease in orders for diesel fuel injection system products. The main reason for the year-on-year increase in net profit of
Zhonglian Electronics is the growth of UAES’ business.
IX. Structured subject controlled by the Company
□ Applicable Not applicable
X. Risks faced by the Company and corresponding measures
1. Macroeconomic and market risks
The current macroeconomic and market environment remains complex and severe, and the automotive industry will continue to
face significant pressure. If the demand in the automotive industry decreases, it will have a certain impact on the Company's
production, operation, and profitability.
Countermeasures: The Company will always pay attention to overseas situations, domestic macroeconomic and industry
development trends, consolidate its existing leading position in the business market, seize emerging opportunities in segmented
fields, deepen strategic partnerships, and strive to improve the Company’s core competitiveness and overall risk resistance.
2. Operation management and control risks
With the acceleration of the international layout of the Company and the expansion of the scope of strategic new business,
especially in the field of new energy, the management span is relatively large with potential operational management and
investment risks.
Countermeasures: The Company will continuously improve and optimize internal management, improve processes, and further
regulate management and control operational risks; Reinforce the control of international business and accelerate the construction
of international talent team to satisfy the strategic development demands of the enterprise.
3. The risk of fluctuations in raw material prices
The price of aluminum, the main raw material of the Company, has kept rising, and the price of precious metals fluctuates greatly,
bringing operational risks of rising costs to the Company.
Countermeasures: The Company will actively improve its market forecasting ability, reasonably control inventory, optimize
demand forecasting and take other measures to reduce the risks caused by fluctuations in raw material prices. Besides, it will
continue to optimize supply chain management, strengthen the vertical integration ability of the industrial chain, transfer some
risks through cost control measures and product price adjustments, so as to reduce the impact of raw material price fluctuations on
performance.
20
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
4. Risks related to financial instruments
The major financial instruments of the Company include monetary funds, structured deposits, receivables, investments in equity
instruments, financial products, borrowings, payables, etc. In the process of operation, the Company is exposed to risks related to
financial instruments, including credit risks, market risks and liquidity risks.
Countermeasures: Identify and analyze various risks exposed to the Company, establish appropriate risk tolerance thresholds and
manage risks, monitor various risks in a timely manner, ensure that risks are controlled within limits, minimize the negative impact
of risks on the operating performance of the Company, and maximize the interests of shareholders and other investors.
XI. Implementation of the Action Plan for “Double Improvement of Quality and Return”
Whether the Company discloses the Action Plan for “Double Improvement of Quality and Return”
□Yes No
21
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section IV. Corporate Governance
I. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
held during the reporting period
1. Annual shareholders’ general meeting during the reporting period
Ratio of investor
Ordinal number of meeting Type Date Date of disclosure Resolution of meeting
participation
(Notice No.: 2024-041) published on CNINFO
Annual general meeting of 2023 AGM 42.73% 2024-05-17 2024-05-18
website(www.cninfo.com.cn)
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting
rights restore
□ Applicable Not applicable
II. Changes in directors, supervisors and senior officers of the Company
Applicable □ Not applicable
Name Position held Type Date Reason
Yin Zhenzhen Chairman Elected May 17th, 2024 Change of Board
Kirsch Christoph Vice Chairman Elected May 17th, 2024 Change of Board
Xu Yunfeng Vice Chairman Elected May 17th, 2024 Change of Board
Feng Zhiming Director Elected May 17th, 2024 Change of Board
Xu Daquan Director Elected May 17th, 2024 Change of Board
Zhao Hong Director Elected May 17th, 2024 Change of Board
Huang Rui Director Elected May 17th, 2024 Change of Board
Xing Min Independent director Elected May 17th, 2024 Change of Board
Feng Kaiyan Independent director Elected May 17th, 2024 Change of Board
Pan Xinggao Independent director Elected May 17th, 2024 Change of Board
Yang Fuyuan Independent director Elected May 17th, 2024 Change of Board
Change of Supervisory
Ma Yuzhou Chairman of Supervisory Board Elected May 17th, 2024
Board
Change of Supervisory
Chen Ran Supervisor Elected May 17th, 2024
Board
Change of Supervisory
Liu Songxue Supervisor Elected May 17th, 2024
Board
Xu Yunfeng General manager appointment May 17th, 2024 Board appointment
Vice General Manager, Financial
Feng Zhiming appointment May 17th, 2024 Board appointment
Director
Xu Sheng Vice General Manager appointment May 17th, 2024 Board appointment
Rong Bin Vice General Manager appointment May 17th, 2024 Board appointment
Vice General Manager, Secretary
Liu Jinjun appointment May 17th, 2024 Board appointment
of the Board of Directors
Li Gang Chief engineer appointment May 17th, 2024 Board appointment
Resignation upon Resignation upon
Wang Xiaodong Chairman May 17th, 2024
expiration of term expiration of term
Resignation upon Resignation upon
Chen Yudong Director May 17th, 2024
expiration of term expiration of term
22
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Resignation upon Resignation upon
Yu Xiaoli Independent director May 17th, 2024
expiration of term expiration of term
III. Profit distribution and capitalization of capital reserves during the reporting period
Applicable □Not applicable
Plan to distribute every 10 bonus shares(share) 0
Proposed distribution of dividends per 10 shares(yuan)(tax included) 2.20
Share capital base for distribution plan (share) 971,986,293
Cash dividend amount (yuan) (tax included) 213,836,984.46
Cash dividend amount in other ways (such as share repurchase) (yuan) 0
Total cash dividends (including other methods) (yuan) 213,836,984.46
Distributable profit (yuan) 11,898,655,155.15
The proportion of total cash dividends (including other methods) to total profit distribution 100%
Cash dividend policy
Other
Detail explanation on profit distribution or capitalization from capital reserves
Based on the 971,986,293 shares which exclude the buy-back shares on buy-back account (25,000,000 A-stock) from total share
capital 996,986,293 shares (According to the provisions of the The Company Law of the People's Republic of China, the listed
Company does not have the right to participate in the profit distribution and the conversion of the capital reserve into the share
capital by repurchasing the shares held by the Company through the special securities account), distributing 2.20 yuan (tax
included) cash dividend for every 10 shares held, no bonus shares, without capitalization from capital reserves. The total amount
of cash dividend to be paid is 213,836,984.46 yuan (tax included). If the total share capital of the Company changes before the
implementation of the distribution plan, the Company will be allocated according to the principle of unchanged distribution
proportion and adjustment of the total amount of distribution. The independent directors of the Company expressed their
independent opinions and agreed to the above proposal.The above distribution plan complies with the provisions of the Company's
articles of association and review procedures, fully protecting the legitimate rights and interests of small and medium-sized
investors.
IV. Implementation of the Company’s stock incentive scheme, employee stock ownership
plan or other employee incentives
Applicable □Not applicable
1. Stock incentive
On October 12, 2020, the Company held the 17th meeting of the 9th session of BOD to deliberated and approved relevant proposal
as the “Restricted Stock Incentive Plan 2020 (Draft)”.
On November 3, 2020, the Company held the second extraordinary shareholders’ general meeting of 2020 to deliberated and
approved relevant proposals as the “Restricted Stock Incentive Plan 2020 (Draft) and its summary”, “Proposal on Assessment
Management Measures for Restricted Stock Incentive Plan Implementation” and “Proposal to Request the Shareholders’ General
Meeting to Authorized BOD to Fully Handle Matters Regarding Stock Incentive”.
On November 12, 2020, the Company held the 21st meeting of 9th session of the BOD, as authorized by the second extraordinary
shareholders’ general meeting of 2020, deliberated and approved the “Proposal on Adjusting the List of Incentive Objects of the
Restricted Stock Incentive Plan and the Number of Rights Granted” and the “Proposal on the First Grant of Restricted Stocks to
Incentive Objects of the 2020 Restricted Stock Incentive Plan”. The BOD considers that conditions for the initial grant of 2020
restricted stock incentive plan have been met, and November 12, 2020 is determine as the initial grant date, 19,540,000 restricted
shares are granted to 601 incentive recipients at a grant price of 15.48 yuan/Share.
The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Company dated
December 8, 2020.
23
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
On October 22, 2021, the Company held the 5th meeting of 10th session of the BOD to deliberate and approve relevant proposals
as the Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back and Cancellation of the
Restricted Stocks Partially Granted without Circulation for year of 2020, and decided to buy-back and cancel 291,000 restricted
shares held by 11 incentive recipients that had been granted but not yet unlocked. As of December 20, 2021, cancellation of the
above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC. After cancellation, number of the incentive
recipients for the first grant of 2020 restricted stock incentive plan was adjusted from 601 to 590, restricted stock of 19,249,000
shares are being held in total.
On December 7, 2022, the Company held the 14th meeting of 10th session of the BOD, and deliberated and passed the Proposal
on the Achievement of the Conditions for the Release of Restricted Shares in the First Restricted Period of the 2020 Restricted
Stock Incentive Plan, the Proposal on Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and
the Proposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020. It
agreed to apply for the release of 7,632,000 restricted stocks granted to 581 incentive recipients and decided to buy-back and
cancel 430,000 restricted shares held by 23 incentive recipients that had been granted but not yet unlocked. On December 16, 2022,
the shares released from this restricted sale were formally available for circulation. As of February 16, 2023, the Company
completed the buy-back and cancellation procedures for the aforementioned 430,000 shares at Shenzhen branch of China
Securities Depository and Clearing Co., Ltd. After this cancellation, the number of incentive recipients granted for the first time by
the Company's restricted stock incentive plan in 2020 was adjusted from 590 to 568, holding 11,187,000 restricted stock in total.
On April 26, 2023, the Company held the 16th meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-Back and Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back and
cancel a total of 5,593,500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions for
lifting restrictions. As of June 16, 2023, the Company has completed the repurchase and cancellation procedures for the above-
mentioned shares at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this cancellation,
there were 568 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan, holding a total
of 5,593,500.00 shares of restricted stock.
On October 23, 2023, the Company held the 20th meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided to
buy back and cancel a total of 417,000 restricted stocks that have been granted to 33 incentive recipients but do not meet the
conditions for lifting restrictions. As of December 19, 2023, the Company has completed the buy-back and cancellation procedures
for the above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. After
this cancellation, there were 535 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive
plan, holding a total of 5,176,500.00 shares of restricted stock.
On April 15, 2024, the Company held the 23rd meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided to
buy back and cancel a total of 5,176,500.00 restricted stocks that have been granted to 535 incentive recipients but did not meet
the conditions for lifting restrictions. As of June 7, 2024, the Company has completed the buy-back and cancellation procedures
for the above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. After
this cancellation, the Company’s 2020 restricted stock incentive plan has been completely terminated.
2. Implementation of employee stock ownership plan
□Applicable Not applicable
3. Other employee incentives
□Applicable Not applicable
24
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section V. Environmental and Social Responsibility
I. Major environmental issues
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection
department
Yes □ No
Policies and industry standards related to environmental protection
Wuxi Weifu High-Tech Group Co., Ltd. and its subsidiaries diligently fulfill environmental protection policies and guidelines at
all levels during production and operation, strictly comply with related national environmental protection laws and regulations
such as Environmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of the People's
Republic of China, Air Pollution Prevention and Control Law of the People's Republic of China, Water Pollution Prevention and
Control Law of the People's Republic of China, Solid Waste Pollution Prevention and Control Law of the People's Republic of
China, Noise Pollution Prevention and Control Law of the People's Republic of China, Energy Conservation Law of the People's
Republic of China, Cleaner Production Promotion Law of the People's Republic of China, Environmental Protection Tax Law of
the People's Republic of China, Measures for the Management of Hazardous Waste Transfer, Regulations on Environmental
Protection of Construction Projects, Regulations on the Administration of Emission Permits as well as related local environmental
protection management rules and regulations, regularly collect newly promulgated laws and regulations on ecological and
environmental protection at all levels, and perform compliance evaluation transformation by combining with production reality to
ensure compliance with the law at all times in the production and operation of the Company.
In the process of production, the Company has constructed comprehensive waste gas and waste water treatment facilities and solid
waste storage facilities in strict accordance with the requirements of related standards such as Standards for Comprehensive
Sewage Discharge, Water Quality Standards for Sewage Discharge into Urban Sewers, Comprehensive Emission Standards for
Air Pollutants, and Pollution Control Standards for Hazardous Waste Storage, and guaranteed stable operation, in an effort to
minimize the negative impact of production and operation on the ecological environment.
Administrative licenses for environmental protection
All the construction projects of Wuxi Weifu High-Tech Group Co., Ltd. and its subsidiaries have been prepared with
environmental impact reports (forms), and have been approved by the local ecological and environmental authorities, and all have
obtained emission permits (registrations) in accordance with the requirements of laws and regulations, and the emission permits
(registrations) to expire in 2023 have been changed or renewed in a timely manner, thereby effectively achieving licensed
emission and legal and compliant emission.
Discharge Permit of Wuxi Weifu High-Tech Group Co., Ltd., valid period: from March 27, 2023 to March 26, 2028;
Discharge Permit of Nanjing Weifu Jinning Co., Ltd., valid period: From September 24, 2022 to September 23, 2027;
Discharge Permit of Wuxi Weifu Chang’an Co., Ltd., valid period: from January 2, 2024 to January 1, 2029.
Industry emission standards and the specific situation of pollutant emissions involved in production and business activities
Num
Types of Exce
Names of ber Distribu Implement
Company main eding
major of tion of Emission ed Approved
or pollutants Emission emiss
pollutants and disch emissio concentration/i pollutant Total emissions total
subsidiary and method ion
characteristic arge n ntensity emission emissions
name characteristi stand
pollutants outlet outlets standards
c pollutants ards
s
Chemical After being Chemical Water Chemical Chemical
Oxygen treated by the WFMS oxygen demand Quality oxygen demand oxygen
Demand, Company's sewage 48mg/L, Standards 9.43 tons, demand 78
Water
WFHT Ammonia sewage 1 dischar ammonia for ammonia tons, Nil
pollutants
Nitrogen, treatment ge nitrogen Sewage nitrogen 0.015 ammonia
Total plant, it is outlet 0.072mg/L, Discharge tons, total nitrogen 7.8
Nitrogen, discharged total into Urban phosphorus tons, total
25
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Total into the phosphorus Sewers 0.03 tons, total phosphorus
Phosphorus, municipal 0.15mg/L, total (GB/T319 nitrogen 1.7 0.52 tons,
Petroleum sewage nitrogen 62-2015) tons, petroleum total
pipeline 8.6mg/L, 0.46 tons nitrogen
network petroleum 10.4 tons,
2.44mg/L petroleum
1.95 tons
Chemical
oxygen
Chemical demand ≤
After being Chemical
oxygen demand 19.0125
Chemical treated by the oxygen demand Water
2.0725 tons, tons,
Oxygen Company's 76mg/L, Quality
ammonia ammonia
Demand, sewage ammonia Standards
WFAC nitrogen 0.5999 nitrogen ≤
Ammonia treatment nitrogen for
sewage tons, total 1.416 tons,
Water Nitrogen, plant, it is 22mg/L, total Sewage
1 dischar nitrogen total Nil
pollutants Total discharged nitrogen Discharge
ge 0.6763 tons, nitrogen ≤
Phosphorus, into the 24.8mg/L, total into Urban
outlet total 2.2422 tons,
Total municipal phosphorus Sewers
phosphorus total
Nitrogen, sewage 2.76mg/L, (GB/T319
0.0753 tons, phosphorus
Petroleum pipeline petroleum 62-2015)
petroleum ≤ 0.2627
network 4.12mg/L
0.1124 tons tons,
petroleum ≤
0.5935 tons
5
machini
The exhaust
ng
gas is
worksh
systematicall Comprehe
ops, 10
y discharged nsive
heat
after being Emission
Non methane treatme
Atmospheric treated by an Standards
total 19 nt 2.14mg/m3 1.78 tons 2.523 tons Nil
pollutant oil mist for Air
hydrocarbons worksh
processor Pollutants
ops,
and adsorbed (GB16297
and 4
by secondary -1996)
assembl
activated
y
carbon
worksh
ops
The exhaust
gas is
systematicall Comprehe
y discharged nsive
after being 4 1.43mg/m3 Emission
Non methane
Atmospheric treated by an worksh 1.34mg/m3 Standards
total 4 0.3204 tons 1.5529 tons Nil
pollutant oil mist ops in 3.18mg/m3 for Air
hydrocarbons
processor 101 2.95mg/m3 Pollutants
and adsorbed (GB16297
by secondary -1996)
activated
carbon
The exhaust
gas is
systematicall Comprehe
y discharged nsive
after being Emission
Non methane 103
Atmospheric treated by an 1.19mg/m3 Standards
total 2 worksh 0.268704 tons Nil Nil
pollutant oil mist 1.92mg/m3 for Air
hydrocarbons op 2
processor Pollutants
and adsorbed (GB16297
by secondary -1996)
activated
carbon
The exhaust
gas is
systematicall Comprehe
y discharged nsive
after being Emission
Non methane One in
Atmospheric treated by an Standards
total 1 Worksh 0.4mg/m3 0.03456 tons Nil Nil
pollutant oil mist for Air
hydrocarbons op 104
processor Pollutants
and adsorbed (GB16297
by secondary -1996)
activated
carbon
Organized 1 heat Emission
emissions treatme Standards
Atmospheric
Ammonia from 1 nt 0.75mg/m3 for Odor 0.038 tons 0.071 tons Nil
pollutant
ammonia worksh Pollutants
spray tower op and (GB14554
26
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
and 1 -93)
secondary sewage
activated treatme
carbon nt plant
adsorption
Comprehe
nsive
2 heat
Organized Emission
treatme
Atmospheric Particulate emissions 1.1mg/m3； Standards
2 nt 0.01 ton 0.048 tons Nil
pollutant matter after bag dust 1.2 mg/m3 for Air
worksh
removal Pollutants
ops
(GB16297
-1996)
Hazardous
waste such as
waste oil,
waste
emulsion,
cleaning Entrust a
waste liquid, legally Not Not
Not
Solid waste grinding qualified unit appli applica Not applicable 448 tons 3958.2 tons Nil
applicable
wheel ash, to dispose of cable ble
sewage it
pretreatment
sludge, oil
containing
filter
cartridges, etc
Chemical
oxygen
After being Chemical Chemical demand
treated by the oxygen demand Water oxygen demand 35.018 tons,
Chemical
Company's 32mg/L, Quality 1.04 tons, suspended
oxygen
sewage suspended Standards suspended solids
demand,
treatment Sewage solids 24mg/L, for solids 0.78 26.263 tons,
ammonia
Water plant, it is dischar ammonia Sewage tons, ammonia ammonia
WFCA nitrogen, total one Nil
pollutants discharged ge nitrogen Discharge nitrogen 0.1235 nitrogen
phosphorus,
into the outlet 3.8mg/L, total into Urban tons, total 2.626 tons,
total nitrogen,
municipal phosphorus Sewers phosphorus total
suspended
sewage 0.09mg/L, total (GB/T319 0.0029 tons, phosphorus
solids
pipeline nitrogen 62-2015) total nitrogen 0.438 tons,
network 3.98mg/L 0.13 tons total
nitrogen
3.502 tons
After being
Chemical
treated by the Water Chemical
oxygen demand
Company's Quality oxygen demand
89.5mg/L,
sewage Standards 4.064 tons,
Chemical ammonia
treatment Sewage for ammonia
oxygen nitrogen
Water plant, it is dischar Sewage nitrogen 0.631 Not
demand, one 14.55mg/L, Nil
pollutants discharged ge Discharge tons, total applicable
ammonia total
into the outlet into Urban phosphorus
nitrogen phosphorus
municipal Sewers 0.03 tons,
1.07mg/L,
sewage (GB/T319 petroleum 0.24
petroleum 5.4
pipeline 62-2015) tons
WFJN mg/L
network
Hazardous
waste such as
waste oil, oily
sludge, Entrust
Not Not
grinding qualified Not Not
Solid waste appli applica Not applicable 147.8 tons Nil
wheel dust, units to applicable applicable
cable ble
empty drums, handle it
activated
carbon, filter
cartridges, etc
Treatment of pollutants
The Company mainly focuses on mechanical processing and generates oil mist exhaust gas (non methane total hydrocarbons). The
oil mist exhaust gas generated in WFAC101 workshop is treated by the high-efficiency oil mist purifier and discharged into the
workshop. After being treated by the secondary activated carbon adsorption device on the roof, the oil mist exhaust gas is
discharged through four 15m-high exhaust funnels; The oil mist exhaust gas generated in WFAC103 workshop is treated by an
efficient oil mist purifier and a secondary activated carbon adsorption device, and then discharged through two 15m-high exhaust
funnels. The oil mist exhaust gas generated in WFAC104 workshop is treated by an efficient oil mist purifier and a secondary
activated carbon adsorption device, and discharged through one 15 meter high exhaust pipe; The oil mist exhaust gas generated in
27
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
the WFMS machining workshop is treated by a high-efficiency oil mist purifier and a secondary activated carbon adsorption
device, and then discharged through four 15m-high exhaust funnels; The cleaning exhaust gas (non methane total hydrocarbons) is
treated by an efficient oil mist purifier and a secondary activated carbon adsorption device, and then discharged through two 15m-
high exhaust funnels; Quenching exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier and
discharged through three 15m-high exhaust funnels; The test exhaust gas (non methane total hydrocarbons) is treated by an
efficient oil mist purifier and discharged through a 15m-high exhaust funnels; The shot blasting exhaust gas (particulate matter) is
treated by a bag filter and discharged through two 15m-high exhaust funnels; The waste gas (ammonia, methanol, non methane
total hydrocarbons) generated by the carbon nitrogen co infiltration process is treated by an acid spray tower and a secondary
activated carbon adsorption device, and then discharged through a 15 meter high exhaust pipe; The carburized exhaust gas (non
methane total hydrocarbons) is treated by a fire curtain combustion and secondary activated carbon adsorption device, and then
discharged through six 15m-high exhaust funnels; After being treated by a secondary activated carbon adsorption device, the waste
gas from drying and solidifying adhesive (non methane total hydrocarbons, tin and its compounds) is discharged through two 15m-
high exhaust funnels; The Company has built a comprehensive sewage treatment station with a designed processing capacity of
1600m3/day in the WFMS plant area. After the production wastewater is regulated by an air flotation tank, it is discharged into the
biochemical system of the sewage station together with the domestic wastewater treated by septic tanks and oil separators for
treatment. The treated wastewater is connected to the municipal pipe network for standard discharge; One production wastewater
treatment station with a designed processing capacity of 120m3/day and one domestic wastewater treatment station with a
designed processing capacity of 200m3/day have been constructed in the WFAC factory area. After being regulated by an air
flotation tank and treated by biochemical treatment, the production wastewater is discharged together with the treated domestic
wastewater into the sewage discharge outlet. The treated wastewater is connected to the municipal pipeline network for standard
discharge.
WFCA has built a sewage treatment station with a designed treatment capacity of about 300m 3/d in the factory. After being
adjusted by the air flotation tank, the production wastewater is discharged into the biochemical system of the sewage station for
treatment together with the domestic sewage treated by septic tanks and grease traps, and the treated sewage is discharged via the
municipal pipe network according to the standard.
WFJN has built a set of industrial sewage treatment station with a designed treatment capacity of about 150m/d and a domestic
sewage treatment station with a treatment capacity of about 450m/d in the factory area. After being adjusted by the air flotation
tank, the industrial wastewater will be discharged into the biochemical system of the sewage station together with the domestic
sewage treated by septic tanks and grease traps for treatment, and the treated sewage will be discharged via the municipal pipe
network according to the standard.
Emergency Response Plan for Environmental Incidents
The Company and its subsidiaries have formulated an Emergency Response Plan for Environmental Incidents in accordance with
standard regulations and the Company’s actual production circumstances. This plan was reviewed and approved by the relevant
local authorities and subsequently filed, with periodic updates being made as necessary. During the reporting period, the Company
conducted both comprehensive and specialized emergency response drills for environmental incidents as per the annual emergency
drill plan. The results of these drills were evaluated, and corresponding emergency measures were refined.
Investments in Environmental Governance and Environmental Protection Tax Payments
The Company and its subsidiaries have equipped themselves with comprehensive environmental protection facilities in line with
environmental impact assessment (EIA) approvals and current environmental management requirements. All major air and water
pollutants are discharged within regulatory limits, and compliant storage facilities have been established for solid waste, which is
entrusted to qualified entities for disposal. The level of investment in environmental protection is leading within the industry.
During the reporting period, the Company and its subsidiaries timely paid environmental protection taxes on a quarterly basis, in
accordance with legal requirements.
Environmental Self-Monitoring Plan
28
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
During the reporting period, the Company and its subsidiaries developed the 2024 Environmental Self-Monitoring
Plan in accordance with relevant management requirements and regulations. This plan was reviewed and filed by the
local ecological environment authorities. As per the plan, a qualified third-party institution has been commissioned to
regularly monitor the Company's emissions, wastewater, and noise. All monitoring data is publicly disclosed on
national and local self-monitoring platforms in accordance with the Measures for Self-Monitoring and Information
Disclosure of Key National Monitoring Enterprises (Trial). The data complies with national and local standards, with
no instances of exceeding emission limits.
Administrative Penalties for Environmental Issues During the Reporting Period
Nil
Other Environmental Information
During the reporting period, the Company and its subsidiaries have regularly submitted pollution discharge permit
compliance reports (quarterly and annual reports) in accordance with national and local laws and regulations. All air
and water pollutants are discharged within standard limits, hazardous waste is disposed of by qualified entities, and
transfer documentation is strictly followed.
Measures and Effects of Carbon Emission Reduction During the Reporting Period
Applicable □ Not Applicable
Resource conservation and reduced consumption are essential components of the Company's core values. This
approach not only enhances business benefits but also improves overall resource utilization. Therefore, the Company
continuously drives technological innovation to increase resource efficiency, actively promotes energy conservation
and emission reduction, and strives for green production. The Company's main business currently focuses on
automotive energy conservation and emission reduction, with all primary products meeting national emission
standards. Additionally, the Company is actively developing new energy businesses, such as green hydrogen and
smart electric vehicles, which contribute to achieving carbon peak and carbon neutrality goals. In the future, the
Company will concentrate on key upstream areas in the hydrogen energy industry chain, promoting the high-quality
development of hydrogen technologies to support green travel and build a clean energy system.
Other Environmental Protection Information
Not applicable
II. Social Responsibility
During the reporting period, the Company actively adhered to the principle of "Promoting Common Prosperity
through High-Quality Development," responded to the call of the times, and vigorously promoted the noble spirit of
"Humanity, Benevolence, and Dedication." The Company is committed to becoming a solid force in advancing social
progress. Through various channels such as the Wuxi Municipal Federation of Trade Unions, the Wuxi Red Cross,
the Wuxi Industry Group, and the Weifu Group Public Welfare Mutual Aid Fund, the Company has established a
comprehensive and in-depth support system, accurately addressing employees' needs. A total of 110 employees have
been assisted, with aid funds amounting to approximately 200,000 RMB. The Company donated 200,000 RMB to the
China Workers' Development Foundation and, together with clients, participated in social welfare initiatives for truck
drivers. Additionally, the Company organized donations of 75,000 RMB to the Wuxi Red Cross and has
consecutively received the "Red Cross Fundraising Work Organization Award" for several years. The Company has
meticulously planned and implemented a series of health-related public welfare activities, such as free medical
consultations at enterprises and the promotion of essential knowledge on CPR, the Heimlich maneuver, and
hypertension prevention, which effectively enhanced employees' self-rescue and mutual-rescue capabilities.
29
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
During the reporting period, the Company organized employees to participate in public welfare activities such as
"Warm Together with Love" and "Intelligent Drive, Love at Fusheng," as well as a walking event called "Spreading
Love with Every Step." These activities not only strengthened team cohesion but also spread goodwill within the
community. By organizing the "Labor Beautifies Bicycles" event, the Company actively promoted green travel and
beautified the urban environment. For the Dragon Boat Festival, the Company specially planned the "Warm Dragon
Boat Festival, Caring Hearts" themed activity, visiting nursing homes to bring festive warmth and care to the elderly.
This promoted the traditional virtue of respecting and caring for the elderly and fostered a warm and harmonious
social atmosphere. Furthermore, as part of the "Ten Thousand Enterprises Link Ten Thousand Villages, Walk the
Road to Revitalization" initiative, the Company partnered with Maohua Village in Taihua Town, Yixing, and
procured two batches of agricultural products during the reporting period.
Looking ahead, the Company will continue to uphold the principle of "Creating Value Together, Sharing Results,"
unwaveringly fulfill its social responsibilities, focus on environmental protection, employee welfare, and broader
social welfare areas, and contribute more to building a harmonious society and creating a better future through
practical actions.
30
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section VI. Important Matters
I. Undertakings that the actual controller, shareholders, related party, buyers and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the reporting period
II. Occupation of the non-operational funds of the listed Company by controlling
shareholders and its related party
□ Applicable Not applicable
No non-operational funds of the listed Company have been occupied by the controlling shareholders and its related party in the
reporting period.
III. External guarantee out of the regulations
□ Applicable Not applicable
No external guarantee out of the regulations occurred in the reporting period.
IV. Appointment and non-reappointment (dismissal) of CPA
Has the semi-annual financial report been audited?
□ Yes No
The Company's semi-annual report has not been audited.
V. Statement on the latest “modified audit report” by BOD and the committee of
supervisors
□ Applicable Not applicable
VI. Explanation from Board of Directors for “Qualified Opinion” that issued by CPA
Applicable □ Not applicable
Gongzheng Tianye Certified Public Accountants (Special General Partnership) issued an unqualified audit report with emphasis of
matter paragraphs on the Company’s 2023 financial report on April 15, 2024.
1. Emphasize the matters involved in the item paragraph
As stated in Note XVIII.7 of the 2023 financial report, “Other Important Transactions and Matters that Affect Investor Decisions”,
Wuxi Weifu International Trade Co., Ltd(“WFTR”), a wholly-owned subsidiary of WFHT, is currently in the stage of being
transferred for review and prosecution for contract fraud. The result of the case is still uncertain in the future.
2. Explanation of changes and handling of the matters involved
31
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
At present, the case is in the stage of being prosecuted by the Wuxi People's Procuratorate to the Wuxi Intermediate People's Court.
The Company will fulfill its disclosure obligations in a timely manner according to the progress of subsequent cases in accordance
with the law.
VII. Bankruptcy reorganization
□ Applicable Not applicable
No bankruptcy reorganization for the Company in the reporting period
VIII. Major litigation and arbitration
Significant litigation or arbitration matters
Applicable Not applicable
No significant litigation or arbitration matters for the Company in the reporting period.
Other litigation and arbitration
Applicable □ Not applicable
Whether
Amount Results and Index
expected Date of
Basic information of involved Progress of litigation impacts of Execution of litigation of
liability disclos
litigation (arbitration) (10,000.00 (arbitration) litigation (arbitration) judgments disclos
have been ure
yuan) (arbitration) trial ure
formed
Under process
Summary of other
according to the
lawsuits where the No significant
litigation process, Some cases have been
Company or subsidiary, impact on the
some cases have not executed, while others
as the plaintiff, did not 1,198.99 No Company's
been closed yet, and are still in the process
meet the disclosure production and
closed cases will be of execution.
criteria standard for operation
executed according
significant litigation
to the process
Summary of other
lawsuits where the Under process No significant The case is in the trial
Company or subsidiary, according to the impact on the process, has not yet
as the plaintiff, did not 4,667.67 No litigation process, Company's been judged, and has
meet the disclosure and the case is production and not reached the
criteria standard for currently under trial operation execution stage
significant litigation
IX. Penalty and rectification
Applicable □Not applicable
Type of
Date of
Name Type Reason investigation Conclusion(if any) Index of disclosure
disclosure
punishment
1. Disclosed inaccurate
financial information
2. Failed to fulfill the review
procedures and disclosure
WFHT Other obligations for related party
Announcement on
transactions in accordance
Receiving Warning
with regulations Has been issued a warning
China Securities Letter from Jiangsu
3. Undisclosed 2022 letter by Jiangsu Securities
Regulatory Securities Regulatory
performance forecast Regulatory Bureau and
Commission took 2024-03-28 Bureau (Notice No.
Wang recorded in the integrity file
administrative 2024-005) disclosed by
Xiaodong Directo of the securities and futures
regulatory measures the Company on the
((Leave r market.
website of CNINFO
office) (www.cninfo. com. cn)
Failure to be diligent and
Directo
Xu Yunfeng responsible
r
Ou Jianbin
((Leave Other
office)
32
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Failed to timely disclose
WFHT Other 2022 annual performance
forecast as required Decision on Issuing a
Wang Notice of Criticism and
Xiaodong Directo Disciplinary Action
Disciplinary action
((Leave r Has been circulated a notice against WFHT and
taken by the stock 2024-03-27
office) Failed to fulfill duties and of criticism Related Parties on the
exchange
Directo obligations of honesty and Official Website of
Xu Yunfeng
r diligence Shenzhen Stock
Ou Jianbin Exchange
((Leave Other
office)
Explanation on rectification
Applicable □Not applicable
After receiving the warning letter from Jiangsu Securities Regulatory Bureau, the Company attached great importance to it,
earnestly learned from the lessons, strengthened the study of relevant laws, regulations, and normative documents, enhanced
information disclosure management and improved the level of standardized operation so as to prevent such incidents from
happening again. The Company and related personnel have submitted a written rectification report to the Jiangsu Securities
Regulatory Bureau as required.
X. Integrity of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XI. Major related party transaction
1. Related party transaction involved with daily operation
Applicable □ Not applicable
Content Related Trading Whether
Proportio Clearing
Type of of Pricin Related party limit over the Availabl Date Index
n in form for
Related Relationshi related related g party transaction approved approved e similar of of
similar related
party p transacti party princi transacti amount (in (in 10 limited market disclo disclo
transacti transacti
on transacti ple on price 10 thousand thousand or not price sure sure
ons on
on yuan) yuan) (Y/N)
Procure Procure Fair
ment of ment of marke Accordin
Associated Market Market
WFPM
enterprise
goods goods t
price
1,885.67 0.43% 4,500 N g to the
price
and and pricin contract
services services g
Associated
Procure Procure Fair
enterprise,
ment of ment of marke Accordin
controlling Market Market
RBCD
subsidiary
goods goods t
price
12,112.66 2.76% 31,300 N g to the
price
and and pricin contract
of Robert
services services g Notice
Bosch
Procure Procure Fair 2024- No.:
Joint ment of ment of marke Accordin 04-16 2024-
Market Market 011
WFEC venture of goods goods t
price
15,064.19 3.43% 119,800 N g to the
price
WFLD and and pricin contract
services services g
Second Procure Procure Fair
largest ment of ment of marke Accordin
Market Market
Bosch shareholder goods goods t
price
11,104.76 2.53% 22,200 N g to the
price
of the and and pricin contract
Company services services g
Holding
Company of Procure Procure Fair
Wuxi ment of ment of marke Accordin
Market Market
EDRI Industry goods goods t
price
2.83 0.00% 0 Y g to the
price
Developme and and pricin contract
nt Group services services g
Co., Ltd.
Holding
Company of Procure Procure Fair
Notice
Wuxi ment of ment of marke Accordin
FALCO Market Market No.:
NTECH
Industry goods goods t
price
1.45 0.00% 0 N g to the
price 2024-
Developme and and pricin contract
011
nt Group services services g
Co., Ltd.
33
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
IDG is the
major
shareholder,
and a
Procure Fair
related
ment of Purchase marke Accordin
Wuxi natural Market Market
IOT person of
goods fixed t
price
2.07 0.00% 0 Y g to the
price
and asset pricin contract
the
services g
Company
serves as
the
chairman
Fair
Sales of Sales of
marke Accordin
Associated goods goods Market Market
WFPM
enterprise and and
t
price
38.8 0.01% 200 N g to the
price
pricin contract
services services
g
Associated
Fair
enterprise, Sales of Sales of
marke Accordin
controlling goods goods Market Market
RBCD
subsidiary and and
t
price
66,018 11.59% 228,100 N g to the
price
pricin contract
of Robert services services
g
Bosch
Fair
Sales of Sales of
Joint marke Accordin
goods goods Market Market
WFEC venture of
and and
t
price
24.76 0.00% 1,500 N g to the
price Notice
WFLD pricin contract
services services 2024- No.:
g
04-16 2024-
Second Fair
Sales of Sales of 011
largest marke Accordin
goods goods Market Market
Bosch shareholder
and and
t
price
99,481.54 17.47% 205,600 N g to the
price
of the pricin contract
services services
Company g
Fair
Sales of Sales of
Changch Joint marke Accordin
goods goods Market Market
un venture of
and and
t
price
50.67 0.01% 5,400 N g to the
price
Xuyang WFLD pricin contract
services services
g
Fair
Sales of Sales of
marke Accordin
Lezhuo Associated goods goods Market Market
Bowei enterprise and and
t
price
515.59 0.09% 1,540 Y g to the
price
pricin contract
services services
g
Fair
Procure
marke Accordin
Associated ment of Market Market
WFPM
enterprise
Others
fixed
t
price
0.3 0 N g to the
price
pricin contract
asset
g
Associated
Fair
enterprise, Payable
marke Accordin
controlling technical Market Market
RBCD
subsidiary
Others
service
t
price
0 500 N g to the
price
pricin contract
of Robert fees, etc
g
Bosch
Associated
Fair
enterprise,
Receivab marke Accordin
controlling Market Market
RBCD
subsidiary
Others le lease t
price
23.4 100 N g to the
price
fees pricin contract
of Robert
g
Bosch
Payment
Second Fair
of
largest marke Accordin
technical Market Market
Bosch shareholder Others
commiss
t
price
243 500 N g to the
price
Notice
of the pricin contract 2024- No.:
ion fees,
Company g 04-16 2024-
etc
011
Second Fair
Procure
largest marke Accordin
ment of Market Market
Bosch shareholder Others
fixed
t
price
0 100 N g to the
price
of the pricin contract
asset
Company g
Second Provide Fair
largest technolo marke Accordin
Market Market
Bosch shareholder Others gy t
price
0 200 N g to the
price
of the service, pricin contract
Company etc. g
Second Fair
largest Selling marke Accordin
Market Market
Bosch shareholder Others of fixed t
price
0 300 N g to the
price
of the asset pricin contract
Company g
The first Fair
Provide
Wuxi largest marke Accordin
technolo Market Market
Industry shareholder Others
gy
t
price
37.48 0 Y g to the
price
Group of the pricin contract
service
Company g
Receivab Fair
Notice
le kinetic marke Accordin
Lezhuo Associated Market Market 2024- No.:
Bowei enterprise
Others energy t
price
88.88 200 N g to the
price 04-16 2024-
fees pricin contract
011
g
34
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Fair
Receivab marke Accordin
Lezhuo Associated Market Market
Bowei enterprise
Others le lease t
price
154.87 400 N g to the
price
fees pricin contract
g
Fair
marke Accordin
Associated Payable Market Market
Autolink
enterprise
Others
lease fee
t
price
0 600 N g to the
price
pricin contract
g
Holding Procure Fair
Urban
Company of ment of marke Accordin
public Market Market
delivery
Wuxi Others cafeteria t
price
108.65 0 Y g to the
price
Industry ingredien pricin contract
Holding
Group ts g
Fair
Joint Provide marke Accordin
Market Market
WFEC venture of Others technical t
price
24.42 100 N g to the
price
WFLD services pricin contract
g
Fair
Joint Receivab marke Accordin
Market Market
WFEC venture of Others le lease t
price
100.33 300 N g to the
price
WFLD fees pricin contract Notice
g 2024- No.:
Fair 04-16 2024-
Payable
Joint marke Accordin 011
technical Market Market
WFEC venture of Others
service
t
price
25.84 0 Y g to the
price
WFLD pricin contract
fees
g
Fair
Payable
Joint marke Accordin
kinetic Market Market
WFEC venture of Others
energy
t
price
10.69 200 N g to the
price
WFLD pricin contract
fees
g
207,120.8
Total -- -- -- 623,640 -- -- -- --
5
Detail of sales return with major amount involved Not applicable
The Company expects the total amount of daily related transactions in 2024 to be 6,236.4 million yuan, and the actual total
amount of daily related transactions that occurred during the reporting period is 2,071.2085 million yuan, classified as follows:
Report the actual implementation of the daily related
1. It is expected that the purchase of goods and services from related parties in 2024 will not exceed 1,778 million yuan, and the
transactions which were projected about their total
actual amount incurred during the reporting period is 401.7363 million yuan; 2. It is expected that the sales of goods and services
amount by types during the reporting period (if
to related parties in 2024 will not exceed 4,423.4 million yuan, and the actual amount incurred during the reporting period is
applicable)
1,661.2936 million yuan; 3. It is expected that other related transactions with related parties in 2024 will not exceed 35 million
yuan, and the actual amount incurred during the reporting period is 8.1786 million yuan.
Reasons for major differences between trading price
Not applicable
and market reference price (if applicable)
2. Related party transactions of asset or acquisition and sold
□ Applicable Not applicable
No related party transactions of asset or equity acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
Applicable □ Not applicable
Is there any non operating related debt and debt transaction
Yes □No
Receivable debt from related parties
Is there Increase Interest
Amount
any in in
Beginning received in Ending
Related Related Cause of occupatio current Interest current
balance(’000 current balance(’0000
party relationship formation n of non period(’0 rate period(’
0 yuan) period(’00 yuan)
operating 000 0000
00 yuan)
funds? yuan) yuan)
35
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Company
controlled by
the elder
Hebei
brother of a -212,548.78 -212,548.78
Machinery
Company
director/senior Formed
executive due to
Hebei “platform No
195,847.05 195,847.05
Jinda trade”
Hebei Company business
143,675.72 143,675.72
Deshuang controlled by
Hebei Hebei
60,940.49 60,940.49
Lanpai Machinery
Hebei
47,925.33 47,925.33
Mianzhuo
Total 235,839.81 235,839.81
The impact of related debt on the For details on the impact on the Company's operating results and financial condition, please refer to
Company's operating results and financial the description of ""Provision for expected credit loss on other receivables formed by “platform
condition trade” business"”
Note1: Hebei Machinery refers to Hebei Machinery Import and Export Co., Ltd., Hebei Jinda refers to Hebei Jinda Import and
Export Co., Ltd., Hebei Lanpai refers to Hebei Lanpai Technology Co., Ltd., Hebei Mianzhuo refers to Hebei Mianzhuo
Electromechanical Equipment Sales Co., Ltd. Hebei Deshuang refers to Hebei Deshuang Trading Co., Ltd.
Note2: According to the principle of substance over form, the company did not treat Weifu International Trade's "platform trade"
business as a normal trade business, but accounted for it as a fund receipt and payment. Because Hebei Jinda, Hebei Deshuang,
Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on the business essence of "platform trade" business,
WFTR listed the difference between the "purchase payment" paid by WFTR to Hebei Jinda, Hebei Deshuang, Hebei Lanpai and
Hebei Mianzhuo based on "platform trade" business and the "sales payment" received from Hebei Machinery 2,358.3981 million
yuan as other receivables. As of June 30, 2024, the Company has made a bad debt provision of 1,448.3589 million yuan for the
balance of other receivables; The bad debt provision balance is calculated by 80.10%, which is the proportion of other receivables
balance of Hebei Machinery and its controlled companies 2,415.1519 million yuan to other receivables balance of WFTR's
"platform trade" business portfolio 2,741.4991 million yuan as of December 31, 2023 multiply the bad debt provision for other
accounts receivable balances in WFTR’s "platform trade" business portfolio 1,644.0683 million yuan.
5. Contact with the related finance companies
□ Applicable Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship and
related parties
6. Transactions between the finance Company controlled by the Company and related parties
□ Applicable Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company and
related parties.
7. Other material related party transactions
Applicable □ Not applicable
On April 15, 2024, the 23rd meeting of the 10th Board of Directors reviewed and approved the Proposal on Investing
in the Establishment of a Partnership Enterprise and Related Transactions. For details, please refer to the
announcement titled Announcement on the Proposed Investment in the Establishment of a Partnership Enterprise and
Related Transactions (Notice No. 2024-020), disclosed by the Company on April 16, 2024. As of the date of this
36
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
report, the matter is progressing as planned.
On May 14, 2024, the 25th meeting of the 10th Board of Directors also reviewed and approved the Proposal for
Increasing Capital in an Associated Company. Details are available in the announcement titled Announcement on the
Proposed Capital Increase in an Associated Company and Related Transactions (Notice No. 2024-038), disclosed by
the Company on May 15, 2024. As of the date of this report, this matter is progressing as planned.
On May 14, 2024, the 25th meeting of the 10th Board of Directors reviewed and aproved the Proposal to Invest in a
Joint Venture for Intelligent Sensing Business and Related Transactions. Details can be found in the announcement
titled Announcement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and Related
Transactions (Notice No. 2024-039), disclosed by the Company on May 15, 2024. As of June 27, 2024, the joint
venture has completed its business registration and obtained a Business License from the Wuxi Economic
Development Zone Administration. For specific details, please refer to the the announcement titled Progress
Announcement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and Related
Transactions (Announcement No. 2024-046) disclosed by the Company on June 29, 2024
For more information on major related party transactions, please refer to the temporary report disclosure website.
Disclosure date of
Name of website disclosing
Name of temporary announcement temporary
temporary announcement
announcement
the Proposal on Investing in the Establishment of a
2024-04-16
Partnership Enterprise and Related Transactions
Announcement on the Proposed Capital Increase in an
2024-05-15
Associated Company and Related Transactions
Announcement on the Proposed Investment in a Joint CNINFO
Venture for Intelligent Sensing Business and Related 2024-05-15 (http://www.cninfo.com.cn)
Transactions
Progress Announcement on the Proposed Investment in a
Joint Venture for Intelligent Sensing Business and Related 2024-06-29
Transactions
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable Not applicable
No trusteeship occurred during the reporting period
(2) Contracting
□ Applicable Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable Not applicable
No leasing occurred during the reporting period
2. Material guarantees
Applicable □ Not applicable
37
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
In ten thousand yuan
The Company’ guarantee towards subsidiaries
Disclosure
date of Guarantee
Count
Name of announceme Guarant Actual Actual Fulfill d by
Guarantee er
guarantee nt related to eed occurring guarantee Collateral Guarantee period ed or related
type Guara
d object the amount date d amount not parties or
ntee
guaranteed not
amount
From the date of
execution of the
main contract up
to the two years
from the date of
expiry of the
Joint
2022-12- performance
VHWX 2022-12-09 1,000 1,000 liability NA NA No No
12 period of the
guarantee
obligations under
the main contract
or December 30,
2026 (inclusive,
whichever is the
earlier)
Three years from
Joint the date of receipt
2023-07-
VHIO 2023-04-28 55,000 7,784 liability NA NA of the guarantee No No
13
guarantee by the Italian tax
bureau
To be individually
calculated
according to each
financing
provided by the
creditor to the
debtor under the
Joint main contract, for
2023-08-
WFAS 2023-04-28 4,000 462 liability NA NA each financing, No No
26
guarantee the guarantee
period is three
years from the
expiration date of
the debt
performance
period under that
financing
Six months from
the maturity date
Joint
2023-11- of each
VHIO 2023-04-28 55,000 5,309 liability NA NA No No
16 guaranteed debt,
guarantee
but no later than
June 30, 2028
Two years since
VHIO completed
all supplier
obligations or
Joint
2024-04- satisfied the
VHIO 2023-04-28 55,000 30,706 liability NA NA No No
09 requirements for
guarantee
indicators in the
guarantee letter
Indicator
requirements
Approved total guaranteed amount Total actual amount occurred
towards the subsidiaries within the towards subsidiaries within the
41,200 30,706
reporting period (B1) reporting period (B2)
Approved total guaranteed amount Total actual guarantee balance
towards the subsidiaries at the 86,461 towards subsidiaries at the year 45,261
year end (B3) end (B4)
Total amount of the Company’s guarantee(total of the top three)
Approved total amount guaranteed Total actual guaranteed amount
within the reporting period 41,200 occurred within the reporting 30,706
(A1+B1+C1) period (A2+B2+C2)
Approved total amount guaranteed Actual total guarantee balance at
86,461 45,261
at the year end (A3+B3+C3) the year end (A4+B4+C4)
38
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Proportion of actual total guaranteed amount (A4+B4+C4) to net asset 2.34%
Wherein:
Explanation of situations where there is a guarantee liability or evidence
indicating the possibility of assuming joint and several liability for the NA
unexpired guarantee contract during the reporting period (if any)
Explanation of providing external guarantees in violation of prescribed
NA
procedures (if any)
Specific description for using the guarantee by complex method: Nil
3. Trusted cash asset management
Applicable □ Not applicable
In ten thousand yuan
Amount with impairment accrual
Capital Amount Outstanding Overdue
Type for the overdue financial products
sources occurred balance amount
which has not been recovered
Financing products of banks Own funds 84,350 7,700 0 0
Financial products of
Own funds 42,000 42,000 0 0
securities firms
Trust financial products Own funds 32,078.66 14,078.66 0 0
Other type Own funds 92,711.65 76,979.46 0 0
Total 251,140.31 140,758.12 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
Applicable □ Not applicable
In ten thousand yuan
Amoun
t of Summar
Whethe
reserve Whether y of the
Capita Anticipat r
Sou for has items
Sta En l Criteria Referenc ed Actual approv
Trustee rce Actual devalua entrust and
Trustee Amou rt d invest for e annual income collected ed by
institutio Type of gain/loss tion of finance related
type nt dat dat ment fixing rate of (if gain/loss legal
n r name fun in period withdra plan in query
e e purpo reward return applicabl in period proced
ds wing the index (if
se e) ure
(if future applicabl
(Y/N)
applica e)
ble)
Bank Referenc
Collecte
Guarante Ow 202 202 wealth e annual
d
ed 68,00 n 4- 4- manag rate of 2.25%-
Bank Bank 277.78 473.69 accordin 0 Yes Yes
floating 0 fun 01- 09- ement return by 2.9%
g to the
income d 29 24 produ the
contract
cts contract
Bank Referenc
Non- Collecte
Ow 202 202 wealth e annual
guarante d
42,45 n 4- 4- manag rate of
Bank Bank ed 2%-2.5% 168.24 253.15 accordin 0 Yes Yes
0 fun 01- 06- ement return by
floating g to the
d 04 26 produ the
income contract
cts contract
Non- Collecte
Ow
guarante d
Securitie Securitie n
ed 187.5 accordin 0 Yes Yes 2024-04-
s s fun
floating g to the 16(Notic
d
income contract e
No.:2024
-013)
Non- Collecte
Ow
guarante d
n
Trust Trust ed 341.48 accordin 0 Yes Yes
fun
floating g to the
d
income contract
Other Referenc
Non-
professio Ow e annual
guarante
nal n rate of
Other ed 2,529.21 0 Yes Yes
financial fun return by
floating
institutio d the
income
ns contract
110,4
Total 446.02 3,785.03 0
50
It is expected that the principal of entrusted financial management fails to recover or there are other situations leading to
39
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
impairment in entrusted financial management
□ Applicable Not applicable
4. Other significant contract
□ Applicable Not applicable
The Company had no other significant contract in the reporting period.
XIII. Explanation on other material matters
□Applicable Not applicable
The Company has no explanation on other material matters.
XIV. Material matters of subsidiary of the Company
□ Applicable Not applicable
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in share capital
1. Changes in share capital
In Share
Before the Change Change during the reporting period(+/-)) After the change
Public
New
Bonus reserve Proporti
Amount Proportion shares Others Subtotal Amount
shares transfer into on
issued
share capital
I. Restricted
5,651,230 0.56% -4,845,055 -4,845,050 806,175 0.08%
shares
1. State-
owned
shares
2. State-
owned legal
person’s
shares
3. Other
domestic 5,651,230 0.56% -4,845,055 -4,845,055 806,175 0.08%
shares
Including:
Domestic
legal
person’s
shares
Domestic
natural
5,651,230 0.56% -4,845,055 -4,845,055 806,175 0.08%
person’s
shares
4. Foreign
shares
40
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Including:
Foreign
legal
person’s
shares
Foreign
natural
person’s
shares
II.
996,180,11
Unrestricted 996,511,563 99.44% -331,445 -331,445
8
99.92%
shares
1. RMB
823,800,11
ordinary 824,131,563 82.24% -331,445 -331,445
8
82.63%
shares
2.
Domesticall
172,380,00
y listed 172,380,000 17.20%
0
17.29%
foreign
shares
3. Overseas
listed
foreign
shares
4. Others
III. Total 1,002,162,79 996,986,29
100.00% -5,176,500 -5,176,500 100.00%
shares 3 3
Reasons for share changed
Applicable □Not applicable
1. During the reporting period, the Company repurchased and canceled 5,176,500 shares of 2020 restricted stock that had been
granted but not unlocked, resulting in a change in restricted shares;
2. During the reporting period, titles of some directors, supervisors, and senior executives of the Company were adjusted, and the
lock-up shares held by senior executives changed, resulting in changes in unrestricted shares.
Approval status of share changes
Applicable □Not applicable
1. On April 15, 2024, the Company held the 23rd meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided to
buy back and cancel a total of 5,176,500 restricted stocks that have been granted to 535 incentive recipients but did not meet the
conditions for lifting restrictions. As of June 7, 2024, the Company has completed the buy-back and cancellation procedures for
the above-mentioned shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2. On April 15, 2024, the Company held the 23rd meeting of the 10th session of board of directors and approved the Proposal on the
Election of Non-independent Director Candidates for the Board of Directors. On May 17, 2024, the Company held its 2023 annual
shareholders' meeting and approved the proposal.
Ownership transfer of share changed
□Applicable Not applicable
Progress of the implementation of buyback share
□Applicable Not applicable
Progress of the implementation of reducing buyback shares by means of centralized bidding
□Applicable Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net asset per share attributable to common
shareholders of Company in latest year and period
□ Applicable Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
41
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
□ Applicable Not applicable
2. Changes of restricted stocks
Applicable □Not applicable
In Share
Opening Restricted shares Shares Ending
Shareholders restricted increased in the released in restricted Restricted reasons Date for released
shares Period Period shares
Wang Xiaodong Lock-up shares held by
225,586 120,000 75,195 180,781 June 7, 2024
(Leave office) senior executives
Lock-up shares held by
Xu Yunfeng 193,500 105,000 0 88,500 June 7, 2024
senior executives
Ou Jianbin Lock-up shares held by
154,500 84,000 51,500 122,000 June 7, 2024
(Leave office) senior executives
Lock-up shares held by
Rong bin 147,000 84,000 0 63,000 June 7, 2024
senior executives
Lock-up shares held by
Liu Jinjun 147,000 84,000 0 63,000 June 7, 2024
senior executives
Lock-up shares held by
Li Gang 147,000 84,000 0 63,000 June 7, 2024
senior executives
Lock-up shares held by
Xu Sheng 147,000 84,000 0 63,000 June 7, 2024
senior executives
Miao Yuming Lock-up shares held by
91,500 0 22,500 114,000 --
(Leave office) senior executives
Middle Restricted Stock
4,531,500 4,531,500 0 0 June 7, 2024
management Incentive Plan 2020
Total 5,784,586 5,176,500 149,195 757,281 -- --
Note: In the table above, shares released in the reporting period is the number that the Company repurchases and cancels the shares
it has been granted but has not yet lifted the restrictions on sale in the reporting period.
II. Securities issuance and listing
□ Applicable Not applicable
III. Number and shareholding situation of Company shareholders
Total preference shareholders with voting rights
Total common stock shareholders at end
62,203 recovered at end of last month before annual report 0
of the reporting period
disclosed (if applicable)
Particulars about shares held above 5% by shareholders or top 10 shareholders
Total of Number Information of
Nature Proporti
common shares Changes in of Amount of sharespledged,
Full name of of on of
held at the end reporting restricte unrestricted tagged or frozen
Shareholders sharehol shares
of reporting period d shares shares held State of Amo
der held
period held share unt
State-
Wuxi Industry
owned
Development Group 20.47% 204,059,398 0 0 204,059,398 N/A 0
corporat
Co., Ltd.
e
Foreign
Robert Bosch Co.,
corporat 14.33% 142,841,400 0 0 142,841,400 N/A 0
Ltd
e
Hong Kong Foreign
Securities Clearing corporat 2.90% 28,944,043 11,241,722 0 28,944,043 N/A 0
Company e
CCB Life Insurance
Co., Ltd. - Traditional Other 1.24% 12,359,918 12,359,918 0 12,359,918 N/A 0
Insurance
NSSF-413 Other 1.06% 10,590,000 360,000 0 10,590,000 N/A 0
42
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
State-
Dongwu Securities owned
0.80% 7,999,900 7,999,900 0 7,999,900 N/A 0
Co., Ltd corporat
e
FIDELITY
Foreign
INVMT TRT
corporat 0.80% 7,955,075 744,689 0 7,955,075 N/A 0
FIDELITY INTL
e
SMALL CAP FUND
Guolian An Fund -
China Pacific Life
Insurance Co., Ltd. -
Dividend Insurance -
Guolian An Fund -
China Pacific Life Other 0.71% 7,123,179 235,200 0 7,123,179 N/A 0
Equity Relative Yield
(Guaranteed
Dividend) Single
Asset Management
Plan
Basic Pension
Other 0.67% 6,698,993 -942,700 0 6,698,993 N/A 0
Insurance Fund- 1003
Domesti
Xie Zuogang c natural 0.51% 5,132,967 0 0 5,132,967 N/A 0
person
Strategy investor or general legal
person becoming the top 10
Nil
shareholders by placing new
shares (if applicable)
Among the aforesaid shareholders, there has no associated relationship between Wuxi
Explanation on associated Industry Development Croup Co., Ltd., the first largest shareholder of the Company, and
relationship concerted action other shareholders; and they do not belong to the persons acting in concert regulated by the
among the aforesaid shareholders Management Measure of Information Disclosure on Change of Shareholding for Listed
Company.
Description of the above
shareholders in relation to
delegate/entrusted voting rights Nil
and abstention from voting
rights.
Special note on the repurchase As of June 30, 2024, the repurchase special securities account of Weifu High-Technology
account among the top 10 Group Co., Ltd has 25,000,000 shares of ordinary A-Share, hereby stated that in according
shareholders (if applicable) withe relevant requirement, they are not included in the top 10 shareholders of the Company.
Particular about top 10 shareholders with unrestricted shares held
Amount of unrestricted Shares held
Shareholders’ name
shares held at Period-end Type Amount
Wuxi Industry Development Group Co., Ltd. 204,059,398 RMB common shares 204,059,398
RMB common shares 115,260,600
Robert Bosch Co., Ltd 142,841,400
Domestically listed foreign shares 27,580,800
Hong Kong Securities Clearing Company 28,944,043 RMB common shares 28,944,043
CCB Life Insurance Co., Ltd. - Traditional
12,359,918 RMB common shares 12,359,918
Insurance
NSSF-413 10,590,000 RMB common shares 10,590,000
Dongwu Securities Co., Ltd 7,999,900 RMB common shares 7,999,900
FIDELITY
INVMT TRT FIDELITY INTL SMALL CAP 7,955,075 Domestically listed foreign shares 7,955,075
FUND
Guolian An Fund - China Pacific Life
Insurance Co., Ltd. - Dividend Insurance -
Guolian An Fund - China Pacific Life Equity 7,123,179 RMB common shares 7,123,179
Relative Yield (Guaranteed Dividend) Single
Asset Management Plan
Basic Pension Insurance Fund- 1003 6,698,993 RMB common shares 6,698,993
Xie Zuogang 5,132,967 Domestically listed foreign shares 5,132,967
43
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Among the aforesaid shareholders, there has no associated relationship between
Explanation on associated relationship or
Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the
consistent actors within the top 10 restricted
Company, and other shareholders; and they do not belong to the persons acting in
shareholders and between top 10 unrestricted
concert regulated by the Management Measure of Information Disclosure on
shareholders and top 10 shareholders
Change of Shareholding for Listed Company.
Explanation on top 10 shareholders involving
Nil
margin business (if applicable)
Shareholders holding more than 5% of the shares, top 10 shareholders or top ten unrestricted shareholders participating in the
lending of shares through refinancing business
□Applicable Not applicable
Top 10 shareholders or top ten unrestricted shareholders participating in the lending/returning of shares through refinancing
business
□Applicable Not applicable
Did top ten common shareholders or top ten unrestricted shareholders have agreed repurchase dealing in the reporting period?
□ Yes No
The top ten common shareholders or top ten unrestricted shareholders didn’t have agreed repurchase dealing in the reporting
period.
IV. Changes in shareholding of directors, supervisors, and senior management
Applicable □Not applicable
Number of
Number of Number of Number of
Number of Number of Number of restricted
shares shares restricted
shares held shares held restricted shares
Working increased in decreased in shares
Name Title at period- at period- shares granted granted in
status reporting reporting granted at
begin end at period- reporting
period period period-
(Share) (Share) begin(Share) period
(Share) (Share) end(Share)
(Share)
Vice
Xu Chairman Currently
258,000 0 105,000 153,000 105,000 0 0
Yunfeng and General in office
Manager
Deputy
Currently
Xu Sheng General 196,000 0 84,000 112,000 84,000 0 0
in office
Manager
Deputy
Currently
Rongbin General 196,000 0 84,000 112,000 84,000 0 0
in office
Manager
Deputy
General
Manager and Currently
Liu Jinjun 196,000 0 84,000 112,000 84,000 0 0
Secretary of in office
the Board of
Directors
Chief Currently
Li Gang 196,000 0 84,000 112,000 84,000 0 0
engineer in office
Wang Chairman of Leave
300,781 0 120,000 180,781 120,000 0 0
Xiaodong board office
Executive
Vice General
Ou Leave
Manager and 206,000 0 84,000 122,000 84,000 0 0
Jianbin office
Financial
Director
Deputy
Miao Leave
General 122,000 30,000 38,000 114,000 0 0 0
Yuming office
Manager
Total -- -- 1,670,781 30,000 683,000 1,017,781 645,000 0 0
44
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
V. Changes of controlling shareholders or actual controller in the reporting period
Changes of controlling shareholders in the reporting period
□ Applicable Not applicable
The Company had no changes of controlling shareholders in the reporting period
Changes of actual controller in the reporting period
□ Applicable Not applicable
The Company had no changes of actual controller in the reporting period
45
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section VIII. Preferred Stock
□ Applicable Not applicable
The Company had no preferred stock in the reporting period.
46
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section IX. Corporate Bonds
□ Applicable Not applicable
47
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Section X. 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
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co., Ltd.
Jun. 30, 2024
In RMB
Item June 30, 2024 January 1, 2024
Current asset:
Monetary fund 2,725,960,523.49 2,274,771,699.14
Settlement provision
Capital lent
Trading financial asset 1,431,717,057.05 2,391,487,144.96
Derivative financial asset
Note receivable 111,953,406.82 144,976,174.84
Account receivable 3,712,958,646.89 3,857,539,958.20
Receivable financing 1,861,606,949.90 1,661,749,949.46
Account paid in advance 79,255,761.11 76,202,271.16
Insurance receivable
Reinsurance receivable
Contract reserve of reinsurance receivable
Other account receivable 1,795,554,563.56 919,684,126.81
Including: Interest receivable
Dividend receivable 872,701,558.93
Buying back the sales of financial asset
Inventory 1,891,829,597.61 2,068,533,030.94
Including: Data resource
Contract asset
Asset held for sale
Non-current asset due within one year
Other current asset 238,309,118.47 325,909,383.11
Total current asset 13,849,145,624.90 13,720,853,738.62
Non-current asset:
48
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Loans and payment on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 5,894,271,112.10 5,947,633,507.07
Investment in other equity instrument 677,790,690.00 677,790,690.00
Other non-current financial asset 669,600,925.15 804,350,120.06
Investment real estate 45,905,888.45 46,926,716.49
Fixed asset 3,958,946,658.33 3,969,574,102.87
Construction in progress 682,829,406.56 564,605,931.90
Productive biological asset
Oil and gas asset
Right-of-use asset 45,893,971.65 48,832,472.85
Intangible asset 502,043,226.41 484,834,882.53
Including: Data resource
Expense on research and development
Including: Data resource
Goodwill 118,827,593.37 122,316,819.20
Long-term expense to be apportioned 20,925,320.48 24,714,632.10
Deferred income tax asset 319,940,864.76 311,912,955.07
Other non-current asset 1,078,844,006.81 1,356,741,223.05
Total non-current asset 14,015,819,664.07 14,360,234,053.19
Total asset 27,864,965,288.97 28,081,087,791.81
Current liability:
Short-term loan 367,616,899.38 838,889,557.51
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 2,156,179,899.55 1,759,062,642.60
Account payable 3,351,779,795.80 3,668,850,423.29
Account received in advance 485,401.22 2,911,439.65
Contractual liability 81,968,819.02 77,686,881.24
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 220,761,785.27 334,810,352.56
Tax payable 66,628,401.45 56,581,082.49
Other account payable 387,892,303.03 108,893,486.63
Including: Interest payable
Dividend payable 329,472,281.60
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liability due within one year 214,202,463.35 38,084,321.10
Other current liability 299,883,882.27 257,139,908.60
Total current liability 7,147,399,650.34 7,142,910,095.67
49
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Non-current liability
Insurance contract reserve
Long-term loan 100,000,000.00 299,800,000.00
Bond payable
Including: Preferred stock
Perpetual capital security
Lease liability 34,393,469.46 37,733,196.51
Long-term account payable 28,035,082.11 28,035,082.11
Long-term wage payable 128,526,633.44 129,844,482.80
Accrued liability 26,746,780.27 38,016,428.52
Deferred income 167,835,493.00 188,773,622.29
Deferred income tax liability 33,988,775.36 37,752,122.87
Other non-current liability
Total non-current liability 519,526,233.64 759,954,935.10
Total liability 7,666,925,883.98 7,902,865,030.77
Owner’s equity:
Share capital 996,986,293.00 1,002,162,793.00
Other equity instrument
Including: Preferred stock
Perpetual capital security
Capital reserve 3,250,366,843.27 3,308,170,140.96
Less: inventory share 469,722,092.24 533,289,512.24
Other comprehensive income 32,287,259.21 54,156,915.97
Reasonable reserve 5,891,265.97 3,641,439.97
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 15,037,305,375.02 15,054,950,398.12
Total owner’ s equity attributable to parent Company 19,363,215,440.23 19,399,892,671.78
Minority interest 834,823,964.76 778,330,089.26
Total owner’ s equity 20,198,039,404.99 20,178,222,761.04
Total liability and owner’ s equity 27,864,965,288.97 28,081,087,791.81
Legal representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Wu Junfei
2. Balance sheet of parent Company
In RMB
Item June 30, 2024 January 1, 2024
Current asset:
Monetary fund 577,322,355.62 714,826,120.43
Trading financial asset 1,354,701,933.76 2,251,060,973.85
Derivative financial asset
Note receivable 22,376,432.66 23,523,055.70
Account receivable 1,433,642,663.04 1,384,059,380.88
Receivable financing 294,458,850.37 227,811,949.87
Account paid in advance 47,826,509.58 45,875,061.25
Other account receivable 2,221,321,070.80 1,370,649,392.28
50
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Including: Interest receivable 3,632,064.24 842,323.12
Dividend receivable 775,914,958.91
Inventory 507,131,113.79 549,696,080.27
Including: Data resource
Contract asset
Asset held for sale
Non-current asset maturing within one year
Other current asset 11,667,975.03 11,054,042.33
Total current asset 6,470,448,904.65 6,578,556,056.86
Non-current asset:
Debt investment
Other debt investment
Long-term receivable
Long-term equity investment 7,950,444,088.24 8,008,012,424.29
Investment in other equity instrument 601,850,690.00 601,850,690.00
Other non-current financial asset 669,600,925.15 804,350,120.06
Investment real estate 33,888,032.53 34,453,448.06
Fixed asset 2,377,331,503.57 2,376,023,503.55
Construction in progress 311,061,752.14 218,670,126.54
Productive biological asset
Oil and natural gas asset
Right-of-use asset 4,574,776.53 4,290,695.37
Intangible asset 254,578,699.18 220,397,330.28
Including: Data resource
Research and development cost
Including: Data resource
Goodwill
Long-term deferred expense 2,479,839.68 3,759,490.67
Deferred income tax asset 144,755,023.36 109,441,564.66
Other non-current asset 642,640,242.20 731,758,973.92
Total non-current asset 12,993,205,572.58 13,113,008,367.40
Total asset 19,463,654,477.23 19,691,564,424.26
Current liability
Short-term borrowing 480,490,722.23
Trading financial liability
Derivative financial liability
Note payable 362,408,253.84 365,959,174.48
Account payable 1,006,186,310.21 1,166,435,681.25
Account received in advance
Contract liability 13,749,547.46 8,548,593.06
Wage payable 98,667,812.63 168,228,976.90
Tax payable 12,848,801.29 5,327,449.07
Other account payable 1,113,572,301.89 216,435,787.01
Including: Interest payable 1,757,583.32 1,123,734.04
Dividend payable 329,472,281.60
Liability held for sale
Non-current liability due within one year 203,525,865.26 28,000,984.47
Other current liability 15,860,654.41 38,294,705.54
51
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Total current liability 2,826,819,546.99 2,477,722,074.01
Non-current liability:
Long-term loan 100,000,000.00 299,800,000.00
Bond payable
Including: preferred stock
Perpetual capital security
Lease liability 1,716,868.37 1,836,800.62
Long-term account payable
Long term employee compensation payable 95,678,717.83 95,678,717.83
Accrued liability 7,290,089.00 10,709,925.00
Deferred income 142,462,629.02 160,462,135.18
Deferred income tax liability
Other non-current liability
Total non-current liability 347,148,304.22 568,487,578.63
Total liability 3,173,967,851.21 3,046,209,652.64
Owners’ equity:
Share capital 996,986,293.00 1,002,162,793.00
Other equity instrument
Including: preferred stock
Perpetual capital security
Capital reserve 3,353,666,774.11 3,412,506,010.91
Less: Inventory share 469,722,092.24 533,289,512.24
Other comprehensive income
Special reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 11,898,655,155.15 12,253,874,983.95
Total owner’s equity 16,289,686,626.02 16,645,354,771.62
Total liability and owner’s equity 19,463,654,477.23 19,691,564,424.26
3. Consolidated profit statement
In RMB
Item 2024 semi-annual 2023 semi-annual
I. Total operating income 5,694,233,552.72 6,129,649,047.40
Including: Operating income 5,694,233,552.72 6,129,649,047.40
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 5,403,425,728.45 5,988,688,585.81
Including: Operating cost 4,620,552,753.54 5,163,871,731.26
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 28,260,194.79 32,240,422.99
52
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Sales expense 113,227,996.84 103,031,481.40
Administrative expense 330,939,659.31 299,195,729.59
R&D expense 302,233,285.34 351,887,038.12
Financial expense 8,211,838.63 38,462,182.45
Including: Interest expenses 13,772,229.94 65,616,425.64
Interest income 18,112,595.69 15,706,416.56
Add: other income 130,886,049.11 40,979,593.51
Investment income (Loss is listed with “-”) 769,668,621.04 811,406,633.49
Including: Investment income on affiliated Company and
734,287,171.95 742,783,514.37
joint venture
The termination of income recognition for
financial asset measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with
“-”)
Income from change of fair value (Loss is listed
-105,956,110.61 -18,069,553.29
with “-”)
Loss of credit impairment (Loss is listed with “-”) 3,490,635.46 -846,725.76
Loss of devaluation of asset (Loss is listed with “-
-66,803,279.10 -90,263,537.00
”)
Income from asset disposal (Loss is listed with “-
5,859,201.49 125,530,905.04
”)
III. Operating profit (Loss is listed with “-”) 1,027,952,941.66 1,009,697,777.58
Add: Non-operating income 700,418.67 2,707,696.00
Less: Non-operating expense 3,361,815.35 758,381.69
IV. Total profit (Loss is listed with “-”) 1,025,291,544.98 1,011,647,091.89
Less: Income tax expense 23,703,720.56 29,332,279.74
V. Net profit (Net loss is listed with “-”) 1,001,587,824.42 982,314,812.15
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with “-”) 1,001,587,824.42 982,314,812.15
2.termination of net profit (net loss listed with “-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent Company 954,341,269.90 948,760,859.55
2.Minority shareholders’ gain and loss 47,246,554.52 33,553,952.60
VI. Net after-tax of other comprehensive income -21,869,656.76 61,239,561.19
Net after-tax of other comprehensive income attributable to owners of
-21,869,656.76 61,239,561.19
parent Company
(i) Other comprehensive income items which will not be reclassified
451,530.88 -305,484.37
subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured 451,530.88 -305,484.37
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 reclassified
-22,321,187.64 61,545,045.56
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 asset re-classify to other comprehensive
income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
53
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
6.Translation differences arising on translation of foreign currency
-22,321,187.64 61,545,045.56
financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 979,718,167.66 1,043,554,373.34
Total comprehensive income attributable to owners of parent Company 932,471,613.14 1,010,000,420.74
Total comprehensive income attributable to minority shareholders 47,246,554.52 33,553,952.60
VIII. Earning per share:
(i) Basic earning per share 0.98 0.98
(ii) Diluted earning per share 0.98 0.98
Legal representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Wu Junfei
4. Profit statement of parent Company
In RMB
Item 2024 semi-annual 2023 semi-annual
I. Operating income 1,647,889,326.24 1,999,983,446.71
Less: Operating cost 1,321,768,571.59 1,582,800,180.15
Tax and surcharge 10,090,110.47 12,898,023.37
Sales expense 11,789,414.41 14,804,263.68
Administration expense 161,566,130.87 151,432,225.43
R&D expenses 119,109,060.22 121,018,486.34
Financial expense 4,824,902.69 -30,173,931.83
Including: interest expenses 9,277,216.36 46,417,119.10
Interest income 12,050,589.75 71,778,851.32
Add: other income 62,105,684.03 29,302,719.53
Investment income (Loss is listed with “-”) 638,461,133.94 711,673,709.71
Including: Investment income on affiliated Company and joint
603,770,972.68 644,975,916.19
venture
The termination of income recognition for financial
asset 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 “-”) -105,971,233.90 -18,284,414.84
Loss of credit impairment (Loss is listed with “-”) 2,009,138.93 -782,758.06
Loss of devaluation of asset (Loss is listed with “-”) -35,029,533.34 -37,325,504.75
Income on disposal of asset (Loss is listed with “-”) 1,029,050.22 3,183,872.63
II. Operating profit (Loss is listed with “-”) 581,345,375.87 834,971,823.79
Add: Non-operating income 437,637.73 20,798.16
Less: Non-operating expense 330,008.10 452,082.96
III. Total profit (Loss is listed with “-”) 581,453,005.50 834,540,538.99
Less: Income tax -35,313,458.70 20,717,315.23
IV. Net profit (Net loss is listed with “-”) 616,766,464.20 813,823,223.76
(i)continuous operating net profit (net loss listed with ‘-”) 616,766,464.20 813,823,223.76
(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
54
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 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 asset 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 616,766,464.20 813,823,223.76
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated cash flow statement
In RMB
Item 2024 semi-annual 2023 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 6,823,095,167.50 7,220,274,822.77
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
Write-back of tax received 67,238,993.27 290,682,518.69
Other cash received concerning operating activities 54,420,149.24 350,434,811.67
Subtotal of cash inflow arising from operating activities 6,944,754,310.01 7,861,392,153.13
Cash paid for purchasing commodities and receiving labor service 4,721,822,344.53 5,293,150,104.57
Net increase of customer loan and advance
Net increase of deposit 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 876,817,470.16 845,487,116.19
Tax paid 125,654,220.31 223,362,710.57
55
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Other cash paid concerning operating activities 332,567,957.64 409,430,984.38
Subtotal of cash outflow arising from operating activities 6,056,861,992.64 6,771,430,915.71
Net cash flow arising from operating activities 887,892,317.37 1,089,961,237.42
II. Cash flow arising from investing activities:
Cash received from recovering investment 2,269,199,889.99 1,792,373,483.22
Cash received from investment income 91,204,017.80 227,184,527.61
Net cash received from disposal of fixed, intangible and other long-
13,423,502.19 130,808,256.39
term asset
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 2,373,827,409.98 2,150,366,267.22
Cash paid for purchasing fixed, intangible and other long-term asset 509,948,929.69 521,593,700.42
Cash paid for investment 1,688,939,156.51 1,384,532,499.32
Net increase of mortgaged loan
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 2,198,888,086.20 1,906,126,199.74
Net cash flows arising from investing activities 174,939,323.78 244,240,067.48
III. Cash flows arising from financing activities
Cash received from absorbing investment 9,000,000.00
Including: Cash received from absorbing minority shareholders’
9,000,000.00
investment by subsidiaries
Cash received from loans 211,155,360.59 2,472,142,881.63
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 220,155,360.59 2,472,142,881.63
Cash paid for settling debt 730,405,067.04 3,430,505,040.97
Cash paid for dividend and profit distributing or interest paying 655,405,251.11 150,449,335.07
Including: Dividend and profit of minority shareholder paid by
subsidiaries
Other cash paid concerning financing activities 72,903,193.84 144,576,715.88
Subtotal of cash outflow from financing activities 1,458,713,511.99 3,725,531,091.92
Net cash flow arising from financing activities -1,238,558,151.40 -1,253,388,210.29
IV. Influence on cash and cash equivalents due to fluctuation in exchange
-11,959,144.77 29,533,974.54
rate
V. Net increase of cash and cash equivalents -187,685,655.02 110,347,069.15
Add: Balance of cash and cash equivalents at the period -begin 2,061,986,694.41 2,277,117,604.82
VI. Balance of cash and cash equivalents at the period -end 1,874,301,039.39 2,387,464,673.97
6. Cash flow statement of parent Company
In RMB
Item 2024 semi-annual 2023 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 1,836,580,357.79 1,931,059,388.32
Write-back of tax received 125,050,063.31
Other cash received concerning operating activities 35,060,914.24 28,151,813.75
Subtotal of cash inflow arising from operating activities 1,871,641,272.03 2,084,261,265.38
Cash paid for purchasing commodities and receiving labor service 1,478,289,500.53 1,283,789,999.36
Cash paid to/for staff and workers 376,267,474.70 371,210,630.31
Tax paid 10,258,978.32 76,834,144.17
56
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Other cash paid concerning operating activities 86,820,283.60 85,355,061.82
Subtotal of cash outflow arising from operating activities 1,951,636,237.15 1,817,189,835.66
Net cash flow arising from operating activities -79,994,965.12 267,071,429.72
II. Cash flow arising from investing activities:
Cash received from recovering investment 1,500,199,889.99 1,285,673,483.22
Cash received from investment income 38,644,329.54 76,692,639.68
Net cash received from disposal of fixed, intangible and other long-
3,150,219.06 5,120,859.04
term asset
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 101,382,422.25 266,890,277.63
Subtotal of cash inflow from investing activities 1,643,376,860.84 1,634,377,259.57
Cash paid for purchasing fixed, intangible and other long-term asset 287,840,839.26 312,219,496.56
Cash paid for investment 720,639,156.51 740,630,287.05
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 175,051,991.34 54,000,000.00
Subtotal of cash outflow from investing activities 1,183,531,987.11 1,106,849,783.61
Net cash flow arising from investing activities 459,844,873.73 527,527,475.96
III. Cash flow arising from financing activities
Cash received from absorbing investment
Cash received from loans 1,795,000,000.00
Other cash received concerning financing activities 775,000,000.00 15,000,000.00
Subtotal of cash inflow from financing activities 775,000,000.00 1,810,000,000.00
Cash paid for settling debts 504,600,000.00 2,026,644,800.00
Cash paid for dividend and profit distributing or interest paying 651,602,564.76 133,911,606.16
Other cash paid concerning financing activities 222,437,210.84 611,812,390.04
Subtotal of cash outflow from financing activities 1,378,639,775.60 2,772,368,796.20
Net cash flows arising from financing activities -603,639,775.60 -962,368,796.20
IV. Influence on cash and cash equivalents due to fluctuation in exchange
-3,365,554.33 3,103,799.68
rate
V. Net increase of cash and cash equivalents -227,155,421.32 -164,666,090.84
Add: Balance of cash and cash equivalents at the period -begin 713,516,740.43 803,410,185.18
VI. Balance of cash and cash equivalents at the period -end 486,361,319.11 638,744,094.34
57
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
7. Consolidated statement of change in owners’ equity
Current Period
In RMB
2024 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perpe Other Provisi Minority Total owners’
Less:
Share tual comprehe Reasonabl Surplus on of interest equity
Prefe Capital reserve Inventory Retained profit Other Subtotal
capital capit nsive e reserve reserve general
rred Other share
al income risk
stock
secur
ities
I. Balance at the
1,002,162,7 3,308,170,140. 533,289,512 54,156,91 3,641,439 510,100,496 15,054,950,39 19,399,892,67 778,330,089 20,178,222,761.0
end of the last
year 93.00 96 .24 5.97 .97 .00 8.12 1.78 .26 4
Add: Change of
accounting
policy
Error correction
of the last period
Other
II. Balance at the
1,002,162,7 3,308,170,140. 533,289,512 54,156,91 3,641,439 510,100,496 15,054,950,39 19,399,892,67 778,330,089 20,178,222,761.0
beginning of this
year 93.00 96 .24 5.97 .97 .00 8.12 1.78 .26 4
III. Increase/ - - - -
Decrease in this 2,249,826 56,493,875.
year (Decrease is 5,176,500.0 -57,803,297.69 63,567,420. 21,869,65 -17,645,023.10 36,677,231.5 19,816,643.95
.00 50
listed with “-”) 0 00 6.76 5
(i) Total -
954,341,269.9 932,471,613. 47,246,554.
comprehensive 21,869,65 979,718,167.66
income 0 14 52
6.76
(ii) Owners’ - -
-58,390,920.00 9,000,000.0
devoted and 5,176,500.0 63,567,420. 9,000,000.00
decreased capital 0
0 00
1.Common share
9,000,000.0
invested by 9,000,000.00
shareholders 0
2.Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
58
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
owners equity
with share-based
payment
- -
4. Other 5,176,500.0 -58,390,920.00 63,567,420.
0 00
- -
(III) Profit
distribution 971,986,293.0 971,986,293.0 -971,986,293.00
0 0
1. Withdrawal of
surplus reserve
2. Withdrawal of
general risk
provisions
3. Distribution - -
for owners (or 971,986,293.0 971,986,293.0 -971,986,293.00
shareholders)
0 0
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserve
conversed to
capital (share
capital)
2. Surplus
reserve
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4.Carry-over
retained earning
from the defined
benefit plans
5.Carry-over
retained earning
from other
comprehensive
income
6. Other
(V) Reasonable 2,249,826
reserve 2,249,826.00 190,612.60 2,440,438.60
.00
1. Withdrawal in
14,355,52 1,693,142.6
the reporting 14,355,523.67 16,048,666.28
period 3.67 1
59
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
2. Usage in the 12,105,69 1,502,530.0
reporting period 12,105,697.67 13,608,227.68
7.67 1
(VI)Others 587,622.31 587,622.31 56,708.38 644,330.69
IV. Balance at 996,986,293 3,250,366,843. 469,722,092 32,287,25 5,891,265 510,100,496 15,037,305,3 19,363,215,44 834,823,964 20,198,039,404.9
the end of the
reporting period .00 27 .24 9.21 .97 .00 75.02 0.23 .76 9
Last Period
In RMB
2023 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perpe Other Provisi Minority Total owners’
Less:
Share tual comprehe Reasonabl Surplus on of interests equity
Prefe Capital reserve Inventory Retained profit Other Subtotal
capital capit nsive e reserve reserve general
rred Other share
al income risk
stock
secur
ities
I. Balance at the -
1,008,603,2 3,398,368,567. 541,623,002 2,119,800. 510,100,496 13,320,021,32 17,696,679,17 738,027,678 18,434,706,849.3
end of the last 911,310.1
year 93.00 63 .63 95 .00 5.90 0.72 .66 8
3
Add: Changes of
accounting
policy
Error correction
of the last period
Other
II. Balance at the -
1,008,603,2 3,398,368,567. 541,623,002 2,119,800. 510,100,496 13,320,021,32 17,696,679,17 738,027,678 18,434,706,849.3
beginning of this 911,310.1
year 93.00 63 .63 95 .00 5.90 0.72 .66 8
3
III. Increase/ - -
Decrease in this 61,239,56 1,463,606 851,002,880.2 847,703,806.8 38,899,547.
year (Decrease is 6,023,500.0 -63,191,471.79 3,212,730.3 886,603,354.08
1.19 .80 5 4 24
listed with “-”) 0 9
(i) Total
61,239,56 948,760,859.5 1,010,000,420. 33,553,952.
comprehensive 1,043,554,373.34
income 1.19 5 74 60
(ii) Owners’ - -
5,161,978.5
devoted and 6,023,500.0 -63,191,471.79 3,212,730.3 -66,002,241.40 -60,840,262.83
decreased capital 7
0 9
1.Common 5,000,000.0
shares invested 5,000,000.00
by shareholders 0
2. Capital
60
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 5,361,906.64 5,361,906.64 160,173.01 5,522,079.65
with share-based
payment
- -
4. Other 6,023,500.0 -68,553,378.43 3,212,730.3 -71,364,148.04 1,805.56 -71,362,342.48
0 9
(III) Profit
distribution -97,757,979.30 -97,757,979.30 -97,757,979.30
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provision
3. Distribution
for owners (or -97,757,979.30 -97,757,979.30 -97,757,979.30
shareholders)
4. 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
6. Other
(V) Reasonable 1,463,606
reserve 1,463,606.80 183,616.07 1,647,222.87
.80
61
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
1. Withdrawal in 14,709,26 1,646,999.8
the reporting 14,709,266.91 16,356,266.75
period 6.91 4
2. Usage in the 13,245,66 1,463,383.7
reporting period 13,245,660.11 14,709,043.88
0.11 7
(VI)Others
IV. Balance at
1,002,579,7 3,335,177,095. 538,410,272 60,328,25 3,583,407 510,100,496 14,171,024,20 18,544,382,97 776,927,225 19,321,310,203.4
the end of the
reporting period 93.00 84 .24 1.06 .75 .00 6.15 7.56 .90 6
8. Statement of changes in owners’ equity of parent Company
Current Period
In RMB
2024 semi-annual
Other equity instrument
Perpetu Other
Item Reason
Less: Inventory comprehe Ot
Share capital Preferre
al Capital reserve able Surplus reserve Retained profit Total owners’ equity
capital Other share nsive her
d stock reserve
securiti income
es
I. Balance at
the end of the 1,002,162,793.00 3,412,506,010.91 533,289,512.24 510,100,496.00 12,253,874,983.95 16,645,354,771.62
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning 1,002,162,793.00 3,412,506,010.91 533,289,512.24 510,100,496.00 12,253,874,983.95 16,645,354,771.62
of this year
III. Increase/
Decrease in
this year -5,176,500.00 -58,839,236.80 -63,567,420.00 -355,219,828.80 -355,668,145.60
(Decrease is
listed with “-”)
(i) Total
comprehensive 616,766,464.20 616,766,464.20
income
(ii) Owners’
devoted and
decreased -5,176,500.00 -58,390,920.00 -63,567,420.00
capital
62
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
1.Common
share invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-
based payment
4. Other -5,176,500.00 -58,390,920.00 -63,567,420.00
(III) Profit
distribution -971,986,293.00 -971,986,293.00
1. Withdrawal
of surplus
reserve
2. Distribution
for owners (or -971,986,293.00 -971,986,293.00
shareholders)
3. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserve
conversed to
capital (share
capital)
2. Surplus
reserve
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4.Carry-over
retained
earning from
the defined
benefit plans
5.Carry-over
retained
earning from
other
comprehensive
income
6. Other
63
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(V) Reasonable
reserve
1. Withdrawal
3,089,0
in the reporting 3,089,003.81
period 03.81
2. Usage in the
3,089,0
reporting 3,089,003.81
period 03.81
(VI)Others -448,316.80 -448,316.80
IV. Balance at
the end of the
reporting 996,986,293.00 3,353,666,774.11 469,722,092.24 510,100,496.00 11,898,655,155.15 16,289,686,626.02
period
Last Period
In RMB
2023 semi-annual
Other equity instrument
Other
Item Perpetu Reason
Less: Inventory comprehe Ot
Share capital al Capital reserve able Surplus reserve Retained profit Total owners’ equity
Preferre share nsive her
capital Other reserve
d stock income
securiti
es
I. Balance at
the end of the 1,008,603,293.00 3,515,005,861.23 541,623,002.63 510,100,496.00 10,765,319,818.29 15,257,406,465.89
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning 1,008,603,293.00 3,515,005,861.23 541,623,002.63 510,100,496.00 10,765,319,818.29 15,257,406,465.89
of this year
III. Increase/
Decrease in
this year -6,023,500.00 -63,036,715.42 -3,212,730.39 716,065,244.46 650,217,759.43
(Decrease is
listed with “-”)
(i) Total
comprehensive 813,823,223.76 813,823,223.76
income
(ii) Owners’
devoted and
decreased -6,023,500.00 -63,036,715.42 -3,212,730.39 -65,847,485.03
capital
64
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
1.Common
share invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 5,522,079.67 5,522,079.67
with share-
based payment
4. Other -6,023,500.00 -68,558,795.09 -3,212,730.39 -71,369,564.70
(III) Profit
distribution -97,757,979.30 -97,757,979.30
1. Withdrawal
of surplus
reserve
2. Distribution
for owners (or -97,757,979.30 -97,757,979.30
shareholders)
3. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserve
conversed to
capital (share
capital)
2. Surplus
reserve
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4.Carry-over
retained
earning from
the defined
benefit plans
5.Carry-over
retained
earning from
other
comprehensive
income
6. Other
65
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(V) Reasonable
reserve
1. Withdrawal
3,237,2
in the reporting 3,237,252.50
period 52.50
2. Usage in the
3,237,2
reporting 3,237,252.50
period 52.50
(VI)Others
IV. Balance at
the end of the
reporting 1,002,579,793.00 3,451,969,145.81 538,410,272.24 510,100,496.00 11,481,385,062.75 15,907,624,225.32
period
66
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
III. 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 Asset 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 conditions, the scheme has been implemented on April 5, 2006.
On May 27, 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 Asset 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 asset 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.
67
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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, Bosch, face value was ONE yuan per
share, added registered capital of 112,858,000 yuan, and the registered capital after change was 680,133,995 yuan. Wuxi Industry
Group is the first majority shareholder of the Company, and Bosch 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 1,020,200,992 yuan up to December 31, 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.
After deliberation and approved by the 5th meeting of 10th session of the BOD for year of 2021, the 291,000 restricted shares are
buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the
above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20, 2021; the paid-in capital
(equity) of the Company comes to 1,008,659,570.00 yuan after changed.
After deliberation and approved by the 8th meeting of 10th session of the BOD for year of 2022, the 56,277 restricted shares are
buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the
above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on July 8, 2022; the paid-in capital (equity) of
the Company comes to 1,008,603,293.00 yuan after changed.
After deliberation and approved by the 14th meeting of 10th session of the BOD for year of 2022, the 16th meeting and the 20th
meeting for year of 2023, the Company bought back and canceled 430,000, 5,593,500, and 417,000 restricted shares granted for
the first time under the 2020 Restricted Stock Incentive Plan. The Company completed the cancellation procedures for the bought
back shares on February 16, 2023, June 16, 2023, and December 18, 2023 at the Shenzhen branch of China Securities Depository
and Clearing Corporation Limited. The Company's paid in capital (share capital) after the change was RMB 1,002,162,793.00.
After deliberation and approved by the 23rd meeting of 10th session of the BOD for year of 2024, the 5,176,500 restricted shares
are buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of
the above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on June 7, 2024; the paid-in capital (equity)
of the Company comes to 996,986,293.00 yuan after changed.
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, organization & personnel department, Office of the Board,
compliance department, IT department, Strategy & new business Department, market development department, Party Mass Work
Department, Finance Department, Purchase Department,Manufacturing Quality Department, Discipline Inspection Department,
MS (Mechanical System) division, AC(Automotive Components) division and DS (Diesel System ) division, etc. and subsidiaries
such as Wuxi Weifu LIDA Catalytic Converter Co., Ltd, Nanjing WFJN Co., Ltd, IRD Fuel Cells A/S, Borit NV, VHIO etc.
3. Business nature and major operation activities of the Company
The Company's business scope: technology development and consulting services in the mechanical industry; Manufacturing of
internal combustion engine fuel system products, fuel system testing instruments and equipment, automotive electronic
68
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
components, automotive electrical components, non-standard equipment, non-standard cutting tools, and exhaust gas post-
treatment systems; Sales of general machinery, hardware and electrical equipment, chemical products and raw materials (excluding
hazardous chemicals), automotive parts, and automobiles (excluding passenger cars with less than nine seats); Internal combustion
engine maintenance; Rental of self owned houses; Import and export business of various commodities and technologies through
self operation and agency (excluding commodities and technologies restricted or prohibited from import and export by the state);
Engineering and technical research and experimental development; Research and development of energy recovery systems;
Manufacturing of automotive parts and accessories; General equipment manufacturing (excluding special equipment
manufacturing) (for projects that require approval by law, business activities can only be carried out after approval by relevant
departments)
General project: Engaging in investment activities with self owned funds; Software development; Software sales; Software
outsourcing services; Mold manufacturing; Mold sales; Manufacturing of machine tool functional components and accessories;
Sales of machine tool functional components and accessories; Manufacturing of drawing, calculation, and measuring instruments;
Sales of drawing, calculation, and measuring instruments; Sales of industrial robots; Installation and maintenance of industrial
robots; Intelligent basic manufacturing equipment manufacturing; Sales of intelligent basic manufacturing equipment;
Manufacturing of industrial automatic control system devices; Sales of industrial automatic control system devices; Manufacturing
of material handling equipment; Sales of material handling equipment; Manufacturing of gas and liquid separation and purification
equipment; Sales of gas and liquid separation and purification equipment; Technical services, technology development, technology
consulting, technology exchange, technology transfer, and technology promotion; Research and development of emerging energy
technologies; Import and export of goods; Technology import and export. (Except for projects that require approval according to
law, conduct business activities independently based on the business license in accordance with the law)
Licensed project: Manufacturing of special equipment; Installation, renovation, and repair of special equipment. (For projects that
require approval by law, business activities can only be carried out after approval by relevant departments. The specific business
projects shall be subject to the approval documents or licenses issued by the relevant departments.)
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company was approved by the Board of Directors for reporting dated August 20, 2024.
5. Unless otherwise stated in the notes to these financial statements, the following Company names are
abbreviated as follows:
Name of subsidiary Short name of subsidiary
Nanjing Weifu Jinning Co., Ltd. WFJN
Wuxi Weifu Lida Catalytic Converter Co., Ltd. WFLD
Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd. WFMA
Wuxi Weifu Chang’an Co., Ltd. WFCA
Wuxi Weifu International Trade Co., Ltd. WFTR
Wuxi Weifu Schmitter Powertrain Components Co., Ltd. WFSC
Ningbo Weifu Tianli Turbocharging Technology Co., Ltd. WFTT
Wuxi WFAM Precision Machinery Co., Ltd. WFAM
WFLD
Wuxi Weifu Lida Catalytic Converter(Wuhan) Co., Ltd.
(Wuhan)
WFLD
Weifu Lida (Chongqing) Automotive Components Co., Ltd.
(Chongqing)
WFLD
Nanchang Weifu Lida Automotive Components Co., Ltd.
(Nanchang)
Wuxi Weifu Autosmart Seating System Co., Ltd. WFAS
Weifu Lianhua Automotive Parts（Fuzhou）Co.，Ltd WFLH
Wuxi Weifu E-drive Technologies Co., Ltd. WFDT
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Name of subsidiary Short name of subsidiary
Wuxi Weifu Qinglong Power Technology Co., Ltd. WFQL
VHIT Automotive Systems(Wuxi) Co.Ltd VHWX
Weifu Zhigan(Wuxi) Technology Co., Ltd WFSS
Weifu Holding ApS SPV
IRD Fuel Cells A/S IRD
IRD FUEL CELLS LLC IRD America
Borit NV Borit
Borit Inc. Borit America
VHIT S.p.A VHIO
IV. Basis of Preparation of Financial Statements
1. Preparation base
The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by the
Ministry of Finance, the specific accounting rules revised and issued dated Feb. 15, 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 2023) issued by CSRC in respect of the
actual transactions and proceedings, on a basis of ongoing operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is on Accrued basis.
Except for certain financial instruments, the financial statement measured on historical cost. Asset have impairment been found,
corresponding depreciation reserves shall Accrued 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, automotive
components, mufflers, purifiers and fuel cell components etc., in line with the actual 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- 36.
“Changes of important accounting policies and 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 status, operation achievements and cash flow for the year of 2023.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 January 1 to December 31.
3. Business cycles
Normal business cycle is the period from purchasing asset 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 recording currency is the RMB yuan.
5. Method for determining importance criteria and selection criteria
Applicable □ Not applicable
Item Importance criteria
Important prepayments with an aging Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount
of over 1 year and with an amount greater than 15 million yuan
Important construction in progress The budget for a single project is greater than 80 million yuan
Important accounts payable with an Account payable with aging over 1 year accounting for more than 10% of the total accounts
aging of over 1 year payable and with an amount greater than 80 million yuan
Other important payables with aging Other payables with aging over 1 year accounting for more than 10% of the total other
of over 1 year payables and an amount greater than 15 million yuan
Important contract liability with Contract liability with aging over 1 year account for more than 10% of the total contract
aging of over 1 year liability and the amount greater than 15 million yuan
The net asset of subsidiaries account for more than 5% of the net asset in the consolidated
Important non-wholly-owned
financial statements, or the net profit of subsidiaries accounts for more than 10% of the net
subsidiaries
profit in the consolidated financial statements
The book value of long-term equity investments in an invested entity accounts for more than
5% of the net asset in the consolidated financial statements and the amount exceeds 1 billion
Important joint ventures or associates
yuan, or the investment gain/loss under the equity method account for more than 10% of the
net profits in the consolidated financial statements and the amount exceeds 100 million yuan
6. 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 asset and liability acquired by combining party are
measured by book value of the combined party on combination date. The balance of net asset’s book value acquired by combining
party and combine consideration paid (or total book value of the shares issued), shall be used to adjust capital reserve (share
premium); if the capital reserve (share premium) is not enough for deducted, the retained earnings shall be adjusted. directly
expenses occurred for enterprise combination, the combining party shall reckon expenses directly occurring for enterprise
combination into current gain/loss at the time of occurrence. Combination day is the date when the combining party obtains
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
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
entities are not ultimately controlled by the same party or parties both before and after the combination. As a purchaser, the fair
value of the asset (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 asset of the purchaser
obtained in combination, shall be 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 asset obtained, liability incurred and contingent liability
incurred, as well as the combination costs. After that, if the combination costs are still lower than the fair value of the identifiable
net asset 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 gain/loss. Difference of the fair value of asset paid and its book values,
reckoned into current gain/loss. On purchasing date, the identifiable asset, 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.
7. Criteria for judging control and preparation method for consolidated financial statement
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined based on control. Control refers to the Company
having the power over the invested entity, enjoying variable returns through participating in related activities of the invested entity,
and having the ability to use the power over the invested entity to influence its return amount. When changes in relevant facts and
circumstances result in changes in the relevant elements involved in the definition of control, the Company will conduct a
reassessment.
When determining whether to include a structured entity in the scope of consolidation, our Company takes into account all facts
and circumstances, including evaluating the purpose and design of the establishment of the structured entity, identifying the types
of variable returns, and evaluating whether to control the structured entity by participating in its related activities and assuming
some or all of the variability of returns.
(2) Preparation method for consolidated financial statements
(1) Recognition principle of consolidation 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) 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
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 asset 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 gain and loss from the internal transactions occurred in the asset the Company sold to the subsidiaries fully offset
"the net profit attributable to the owners of the parent Company". The unrealized gain and loss from the internal transactions
occurred in the asset 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 gain and loss from the internal transactions occurred in the asset 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 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 loss 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 asset 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 asset or liability 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 liability or net asset 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
package deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following
situations, the transactions shall normally be accounted for as package deal: 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 package deal, 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 package deal, the
transactions shall be accounted as a single disposal transaction; however, the difference between the consideration received from
disposal and the share of net asset disposed in each individual transaction 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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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
8. 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 asset held solely by the Company, and recognize asset 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.
9. 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.
10. Foreign currency business and conversion
For foreign currency transactions, convert the foreign currency amount into the accounting base currency amount.
At the initial recognition of foreign currency transactions, the foreign currency amount shall be converted into the accounting base
currency amount with the spot exchange rate on the transaction date. On the balance sheet date, the foreign currency monetary
items shall be converted with the spot exchange rate on the balance sheet date. The settlement and monetary item discount
differences arising from this are recognized in the current period's profit and loss, except for the differences arising from foreign
currency special borrowings related to the acquisition and construction of asset that meet capitalization conditions and are treated
according to the principle of borrowing cost capitalization. Foreign currency non-monetary items measured at historical cost shall
be still converted with the exchange rate used at the initial recognition without changing their accounting base currency amount.
Foreign currency non- monetary items measured at fair value shall be converted with the spot exchange rate on the fair value
determination date, and the resulting differences are recognized in the current period’s profit and loss. The subsequent difference
shall be booked into current profit or loss or other comprehensive income in terms of the feature of non-monetary items.
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.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
11. Financial instrument
Financial instrument is the contract that forms the financial asses for an enterprise and forms the financial liability or equity
instrument for other units.
(1) Classification and initial measurement
The Company recognizes a financial asset or liability when it becomes a party to a financial instrument contract.
1) Classification and initial measurement of financial asset
At the initial recognition, according to the business model of managing financial asset and the contractual cash flow characteristics
of financial asset, the Company classifies the financial asset into the financial asset measured at amortized cost, the financial asset
measured at fair value and whose changes are included in other comprehensive income, and the financial asset measured at fair
value and whose changes are included in current profit or loss.
Financial asset is measured at fair value for the 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 the financing component that does
not exceed one year isn’t considered, it shall be initially measured at the transaction value.
For financial asset 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 asset, related transaction costs are included in the
initially recognized amount.
2) Classification and initial measurement of financial liability
The financial liability of the Company are classified as financial liability measured at fair value and whose changes are included in
current profit or loss and financial liability measured at amortized cost at the initial recognition. For financial liability that are not
classified as financial liability 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.
(2) Subsequent measurement
1) The subsequent measurement of financial asset depends on their classification:
① Financial asset measured at amortized cost
The Company classifies the financial asset that meet the following conditions and are not designated as financial asset measured at
fair value and whose changes are included in current profit or loss as financial asset measured at amortized cost:
A. The group’s business model for managing the financial asset is to collect contractual cash flows; and
B. The contractual terms of the financial asset stipulate that cash flow generated on a specific date will be only used to pay for the
principal and interest based on the outstanding principal amount.
After initial recognition, such financial asset is measured at amortized cost with the effective interest method. Gain or loss arising
from financial asset which are measured at amortized cost and are not a component of any hedging relationship are included in
current profit or loss when being terminated for recognition, amortized by effective interest method, or impaired.
② Financial asset measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial asset that meet the following conditions and are not designated as financial asset measured at
fair value and whose changes are included in current profit or loss as financial asset measured at fair value and whose changes are
included in other comprehensive income:
A. The Group's business model for managing the financial asset is targeted at both the collection of contractual cash flows and the
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
sale of financial asset; and
B. The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only used to pay for the
principal and the interest based on the outstanding principal amount.
After initial recognition, such financial asset is subsequently measured at fair value. Interests, impairment loss or gain and
exchange gain and loss calculated with the effective interest method are included in profit or loss for the period, and other gain or
loss are included in other comprehensive income. At the time of derecognition, the accumulated gain or loss previously included in
other comprehensive income shall be carried forward from other comprehensive income to current profit or loss.
③ Financial asset measured at fair value and whose changes are included in current profit or loss
Except for the above financial asset measured at amortized cost and measured at fair value and whose changes are included in
other comprehensive income, the Company classifies all other financial asset as financial asset 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 asset 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 asset measured at fair value and
whose changes are included in current profit or loss.
After the initial recognition, such financial asset is subsequently measured at fair value, and the gain or loss (including interests
and dividend income) are included in the current profit and loss, unless the financial asset is part of the hedging relationship.
However, for non-trading equity instrument investments, the Company irreversibly designates them as the financial asset 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 definition of equity instruments from the
issuer’s perspective. After initial recognition, such financial asset is subsequently measured at fair value. Dividend income that
meets the conditions is included in profit or loss, and other gain or loss and changes in fair value are included in other
comprehensive income. When it is terminated for recognition, the accumulated gain or loss previously included in other
comprehensive income are transferred from other comprehensive income and included in retained earnings.
2) The subsequent measurement of financial liability depends on their classification：
① Financial liability measured at fair value and with variation reckoned into current gain/loss
Financial liability measured at fair value and with variation reckoned into current gain/loss include tradable financial liability and
the financial liability that are designated as fair value in the initial recognition and whose changes are included in current profit or
loss. For such financial liability, the subsequent measurement is based on fair value, and the gain or loss arising from changes in
fair value and the dividends and interest expenses related to these financial liability are included in current profit or loss.
② Financial liability measured at amortized cost
Other financial liability is subsequently measured at amortized cost with the effective interest method. The gain or loss arising
from de-recognition or amortization is included in current profit or loss.
(3) Transfer and derecognition of financial instruments
1) Transfer and derecognition of financial asset
For financial asset that the Company has transferred almost all risks and rewards of ownership of financial asset to the transferee,
terminate the recognition of the financial asset; if almost all the risks and rewards of ownership of financial asset have been
retained, do not terminate the recognition of the financial asset.
If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial asset, dispose as
following situations: If the control of the financial asset is abandoned, terminate the recognition of the financial asset and
determine the resulting asset and liability. If the control of the financial asset is not abandoned, determine the relevant financial
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
asset according to the extent to which they continue to be involved in the transferred financial asset, and determine the related
liability accordingly.
For those who continue to be involved by providing financial guarantees for the transferred financial asset, the asset formed by
further involvement shall be recognized based on the lower of the book value of the financial asset and the amount of financial
guarantees. The financial guarantee amount refers to the highest amount of consideration received that will be required to be
repaid.
2) General principles for derecognition of financial instruments
If the following conditions are met, the Company will derecognize the financial asset (or a portion of financial asset, or a group of
similar financial asset), that is, charge off them from their accounts and balance sheets:
① The right to receive cash flows from financial asset has expired;
②The right to receive cash flows from financial asset has been transferred, or assume the obligation to timely and fully pay the
cash flows received to the third party under a “pass-through agreement”; and (a) substantially transferred almost all the risks and
rewards of ownership of the financial asset, or (b) relinquished control over the financial asset even though substantially neither
transferred nor retained almost all the risks and rewards of ownership of the financial asset.
In case the liability for financial liability has been fulfilled, revoked or expired, such financial liability shall be derecognized. If the
existing financial liability is replaced by another financial liability with substantially different terms by the same creditor, or if the
terms of the existing liability is substantially modified, such replacement or modification shall be treated as derecognition of the
original liability and recognition of new liability, and the difference shall be booked into the current period’s profit and loss.
The financial asset which are bought or sold in a conventional manner shall be recognized or derecognized according to the
accounting on the transaction date. Buying and selling financial asset in a conventional manner refers to the purchase or sale of
financial asset in accordance with contractual provisions, and the terms of the contract stipulate that financial asset is delivered
according to the time schedule usually determined by regulations or market practices. The trading day refers to the date on which
the Company promises to buy or sell financial asset.
(4) Balance-out between the financial asset and liability
As the Company has the legal right to balance out the financial liability by the net or liquidation of the financial asset, the balance-
out sum between the financial asset and liability is listed in the balance sheet. In addition, the financial asset and liability is listed
in the balance sheet without being balanced out.
(5) Fair value of financial instruments
For financial instruments with active markets, their fair value shall be determined based on their quoted prices in the active market.
For financial instruments that do not have an active market, their fair value shall be determined with valuation techniques. At the
time of valuation, the Company adopts valuation techniques that are applicable in the current situation and have sufficient
available data and other information support, selects input values that are consistent with the asset or liability characteristics
considered by market participants in the transaction of related asset or liability, and uses relevant observable input values as much
as possible, and use unobservable input values when relevant observable input values cannot be obtained or are not feasible.
(6) Impairment of financial instruments
Based on expected credit loss, the Company withdraws provisions for impairment loss and recognizes credit impairment loss for
financial asset measured at amortized cost, debt instrument investments measured at fair value with changes recognized in other
comprehensive income, and financial guarantee contracts.
For accounts receivable, bills receivable, and accounts receivable financing that do not contain significant financing components,
the Company adopts a simplified measurement method to measure the provision for impairment loss based on the expected credit
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
loss amount in the entire existence period.
For accounts receivable, notes receivable, and accounts receivable financing that contain significant financing components, the
Company chooses to use a simplified measurement method to measure the provision for loss based on the expected credit loss
amount equivalent to the entire existence period.
For financial asset other than those using simplified measurement methods mentioned above, the Company assesses on each
balance sheet date whether their credit risk has significantly increased since initial recognition. If credit risk has not significantly
increased since initial recognition and is in the first stage, the Company measures loss provisions based on the expected amount of
credit loss in the next 12 months; If credit risk has significantly increased since initial recognition but credit impairment has not
yet occurred, and is in the second stage, the Company measures the provision for loss at an amount equivalent to the expected
credit loss for the entire existence period; Financial instruments that have experienced credit impairment since initial recognition
are in the third stage, and the Company measures the provisions for impairment loss based on expected credit loss over the entire
existence period.
For financial instruments with lower credit risk on the balance sheet date, the Company assumes that their credit risk has not
significantly increased since initial recognition and measures loss provisions based on expected credit loss over the next 12 months.
Except for accounts receivable that are individually assessed for credit risk, our Company divides other accounts receivable into
several portfolios based on credit risk characteristics and calculates expected credit loss on the basis of these combinations.
Accounts receivable that are individually assessed for credit risk, such as those in dispute with the other party or involved in
litigation or arbitration; there are clear indications that the debtor may not be able to fulfill their repayment obligations for
accounts receivable, etc.
Due to similar credit risk characteristics, no provision for bad debts is made for accounts receivable between companies within the
scope of our consolidated financial statements that have no impairment in a single test.
Except for separately evaluating credit risk accounts receivable, the Company divides accounts receivable into different portfolios
based on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determining
different portfolios and methods for measuring expected credit loss are as follows:
Item Basis for determining the portfolio Specific methods for measuring expected credit loss
Accounts For accounts receivable within six months, the Company does not provide for
receivable expected credit loss; In addition, the Company believes that the credit risk of the
financing - bank Bank acceptance bill bank acceptance bills it holds is relatively low and will not cause significant loss
acceptance bill due to bank defaults. Therefore, the expected credit loss shall not be measured
portfolio for the corresponding receivables financing bank acceptance portfolio.
For accounts receivable within six months, the Company does not provide for
Accounts expected credit loss; In addition, the credit risk of the commercial acceptance
receivable - bills held by our Company is relatively low, as these bills are mainly issued by
commercial Commercial acceptance bill reputable automobile manufacturers. Based on historical experience, there have
acceptance bill been no significant defaults. Therefore, the Company doesn’t measure expected
portfolio credit loss for the portfolio of accounts receivable and commercial acceptance
bills
Accounts Accounts receivable other than accounts
Receivable - receivable from internal related parties and
Measure expected credit loss based on aging
Customer those for which credit impairment loss have
Portfolio been individually provisioned
Other receivables Other receivables except for accounts Based on historical credit loss experience, combined with current conditions and
- accounts receivable from internal related parties and predictions of future economic conditions, the expected credit loss is calculated
receivable other accounts for which credit impairment loss by default risk exposure and the expected credit loss rate for the next 12 months
portfolio have been individually provisioned or the entire duration.
For accounts receivable that are measured for expected credit loss based on their aging, their aging is calculated continuously from
the initial recognition date of the debt. The corresponding provision ratio for expected credit loss at different aging stages is as
follows:
Aging Provision ratio (%)
Within 6 months --
6 months - 1 year 10.00
1 - 2 years 20.00
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
2 -3 years 40.00
Over three years 100.00
12. Note receivable
Note receivable 1: bank acceptance bill
Note receivable 2: commercial acceptance bill
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current
conditions and forecasts of the future economic situation.
13. Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current
conditions and forecasts of the future economic situation.
14. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in other
comprehensive income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to
more relevant accounting policies in Note V- 11. “Financial Instrument”.
15. Other account receivables
Determination method of expected credit loss and accounting treatment
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current
conditions and forecasts of the future economic situation.
16. Contract asset
Recognition method and standard of contract asset: contract asset refer to the right of a Company to receive consideration after
transferring goods or providing services to customers, and this right depends on other factors besides the passage of time. The
Company's unconditional (that is, only depending on the passage of time) right to collect consideration from customers are
separately listed as receivables.
Method for determining expected credit loss of contract asset: the method for determining expected credit loss of contract asset is
consistent with the method for determining expected credit loss of accounts receivable.
Accounting treatment method of expected credit loss of contract asset: if the contract asset is impaired, the Company shall debit
the “asset impairment loss” account and credit the “contract asset impairment provision” account according to the amount that
should be written down. When reversing the provision for asset impairment that has already been withdrawn, make opposite
accounting entries.
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17. 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 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 withdrawn 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
The Company adopts a perpetual inventory system and conducts regular physical inventory checks.
(5) Amortization of low-value consumables and wrappage
① Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
② Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
18. Asset held for sale
The Company classifies non-current asset or disposal groups that meet all of the following conditions as held-for-sale: according
to the practice of selling this type of asset or disposal groups in a similar transaction, the non-current asset 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 asset 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 asset and liability 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.
Asset held for sale are measured at the lower of their carrying value and fair value less selling expense. If the carrying value is
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 asset. In respect of impairment loss recognized for
disposal group held for sale, firstly deduct the carrying value of the goodwill in the disposal group, and then deduct the carrying
value of the non-current asset 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 asset 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 asset 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 not be reverted.
The non-current asset in the non-current asset 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 asset or disposal group are no longer classified as asset held for sale since they no longer meet the condition of
being classified as held for sale or the non-current asset is 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.
19. 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 asset or financial asset measured at fair value and with variation reckoned
into current gain/loss. As for other accounting policies found more in Note V -11. “Financial instrument”.
(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:
① For 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 asset 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 resulting 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 treated as “package deal”. If they belong to “package deal”, these transactions will be accounted for a
transaction in obtaining control. If they are not belonging to “package deal”, the initial investment cost of the long-term equity
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 asset will not be accounted for.
② For the long-term equity investment obtained by business combination not under the same control, the fair value of the asset
involved, the equity instruments issued and the liability incurred or assumed on the transaction date, plus the combined cost
directly related to the acquisition is used as the initial investment cost of the long-term equity investment. The identifiable asset of
the combined party and the liability (including contingent liability) assumed by the combined party on the combining date are all
measured at fair value, regardless of the amount of minority shareholders’ equity. The amount of the combined cost exceeding the
fair value of the identifiable net asset of the combined party obtained by the Company is recorded as goodwill, and the amount
below the fair value of the identifiable net asset of the combining party is directly recognized in the consolidated income
statement.(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 “package deal”. If they belong to “package deal”, these transactions will be accounted for a transaction in obtaining control.
If they are not belonging to “package deal”, 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.)
③ Long-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 determined at fair value
of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-monetary asset,
which is of commercial nature, is determined at fair value of the asset exchanged-out; otherwise determined at carrying value of
the asset 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
① Presented controlling ability on invested party, the investment shall use cost method for measurement.
② Long-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 asset 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
asset 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 loss and other comprehensive income made by the invested party, respectively. Meanwhile, the carrying amount of
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 loss based
on the fair values of the invested party’s individual separately identifiable asset 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 asset 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 asset. 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 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 loss 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 loss.
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 asset 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.
④ Disposal 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 asset 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-7. “Criteria for judging control and preparation method for consolidated financial statement”.
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 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,
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 asset 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 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 “package deal”, 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) 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. When determining whether there is joint
control, firstly judge whether all the participants or participant group have controlling over such arrangement as a group or not,
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
and then judge 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. When determining whether
significant influence can be exerted on the invested entity, 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 considered.
20. Investment real estate
Measurement model of investment real estate
Cost measurement
Depreciation or amortization
Investment real estate is stated at cost. 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 asset 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
under contract or agreement without fair value are stated at fair value.
The investment real estate is subsequently measured by the Company with cost method. The depreciation and amortization is
calculated with the straight-line method on the basis of their estimated useful lives.
21. Fixed asset
(1) Recognition conditions
Fixed asset refer to the tangible asset for production of products, provision of labor, lease or operation, with a service life longer
than one year and higher unit value.
(2) Depreciation methods
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
Permanent ownership land Straight-line depreciation Indefinite No depreciation
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 asset with impairment provision, the depreciation amount shall be calculated after deducting the accumulated amount
of impairment provision for fixed asset
The Company shall review the useful life, estimated net residual value, and depreciation method of fixed asset at least at the end of
each fiscal year, and make necessary adjustments.
22. Construction in progress
From the date on which the fixed asset built by the Company come into an expected usable state, the construction in progress are
converted into fixed asset 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 asset
after final accounting is completed upon completion of projects.
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23. Borrowing cost
(1) Recognition of capitalization of borrowing cost
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 asset 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 asset 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;
③Acquisition or construction necessary for the asset 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 asset reached to
its intended use of status or sales, than reckoned into asset costs while satisfy the above mentioned capitalization condition;
capitalization of borrowing costs shall be suspended and recognized as current expenditure during periods in which construction of
fixed asset, 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) Measurement of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the asset 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 asset 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 asset in excess of the expenditure on the asset 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.
24. Intangible asset
(1) Service life and its determination basis, estimate, amortization method or review procedure
(1) Service life and its determination basis, estimate, amortization method or review procedure
① Measurement of intangible asset
The intangible asset of the Company include 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 asset acquired through exchange of non-monetary asset, which is commercial in substance, is carried at the fair
value of the asset exchanged out; for those not commercial in substance, they are carried at the carrying amount of the asset
exchanged out.
The intangible asset acquired through debt reorganization, are recognized at the fair value.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
② Amortization methods and time limit for intangible asset:
The land use rights of the Company shall be amortized on an average basis over the transfer period from the date of transfer (the
date of obtaining the land use rights); Patented technology, non-patented technology and other intangible asset of the Company are
amortized by straight-line method with the shortest terms among expected useful life, benefit years regulated in the contract and
effective age regulated by the laws. The amortization amount shall count in relevant asset costs and current gain/loss according to
the benefit object.
As for the intangible asset as trademark, with uncertain benefit terms, amortization shall not be carried.
Our Company shall review the useful life and amortization method of intangible asset at least at the end of each fiscal year, and
make necessary adjustments.
(2) The collection scope and related accounting treatment methods of R&D expenditure
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 asset (patented technology and non-patents
technology):
① It is technically feasible that the intangible asset can be used or sold upon completion;
② There 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;
④ There 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 gain/loss previously shall not
be recognized as asset in later period. The capitalized expenses in development stage listed as development expenditure in balance
sheet, and shall be transfer as intangible asset since such item reached its expected conditions for service.
25. Impairment of long-term asset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of non-current non-
financial asset such as fixed asset, construction in progress, intangible asset 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 asset
with an indefinite useful life and intangible asset 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 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 asset 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 asset capable of generating cash flows independently.
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 asset 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
asset (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 asset shall not be reversed in a subsequent period in respect of the part whose
value can be recovered.
26. Long-term deferred expense
Long-term expenses to be amortized of the Company implies 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.
27. Contract liability
The Company lists the obligation to transfer goods or provide labor services to customers for the consideration received or
receivable from customers as contractual liability, such as the amount that the Company has received before the transfer of the
promissory goods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff provides service to the Company, the short-term remuneration actual occurred shall
be recognized as liability and be reckoned into current gain/loss. During the accounting period when staff provides service to the
Company, the actual short-term compensation occurred shall be recognized as liability and be reckoned into current gain/loss,
except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall be
reckoned into current gain/loss or relevant asset costs at the time of actual occurrence. The employee compensation shall be
recognized as liability and be reckoned into current gain/loss or relevant asset costs at the time of actual occurrence. The employee
benefits that belong to non-monetary benefits are measured at 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 relevant provisions should be calculated and determined as the
corresponding compensation amount and determined the corresponding liability in accordance with the specified withdrawing
basis and proportion, and be reckoned in the current profits and loss or relevant asset costs in the accounting period that the
employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit includes 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. 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 treatment for retirement benefits
In case the Company terminates the employment relationship with employees before the end of the employment contracts or
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
provides compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize
employee compensation liability 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 profit or loss by the Group if the
recognition principles for provisions are satisfied.
(4) Accounting treatment for other long-term employee benefits
Except for the Compulsory insurance, the Company provides the supplementary retirement benefits to the employees satisfying
certain 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 asset from the present value of defined benefit
obligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by the
independent actuary on the basis of 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
gain or loss) and the net interest are reckoned in the current profits and loss or other asset costs, the changes generated by
recalculating the net liability of defined benefit plans or net asset should be reckoned in other consolidated income.
29. Accrued liability
(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 asset, 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
30. Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liability determined on the basis of
equity instruments in order to obtain services provided by employees or other parties. The Company’s share-based payment is
classified as equity-settled share-based payment and cash-settled share-based payment.
(1) Equity-settled share-based payment and equity instruments
Equity-settled share-based payment in exchange for services provided by employees shall be measured at the fair value of the
equity instruments granted to employees. If the Company uses restricted stocks for share-based payment, employees contribute
capital to subscribe for stocks, and the stocks shall not be listed for circulation or transfer until the unlocking conditions are met
and unlocked; if the unlocking conditions specified in the final equity incentive plan are not met, the Company shall repurchase
the stocks at the pre-agreed price. When the Company obtains the payment for the employees to subscribe for restricted stocks, it
shall confirm the share capital and capital reserve (share capital premium) according to the obtained subscription money, and at the
same time recognize a liability in full for the repurchase obligation and recognize treasury shares. On each balance sheet date
during the waiting period, the Company makes the best estimate of the number of vesting equity instruments based on the changes
89
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
in the latest obtained number of vested employees, whether they meet the specified performance conditions, and other follow-up
information. On this basis, the services obtained in the current period are included in related costs or expenses based on the fair
value on the grant date, and the capital reserve shall be increased accordingly.
For share-based payments that cannot be vested in the end, costs or expenses shall not be recognized, unless the vesting conditions
are market conditions or non-vesting conditions. At this time, regardless of whether the market conditions or the non-vesting
conditions are met, as long as all non-market conditions in the vesting conditions are met, it is deemed as vesting.
If the terms of equity-settled share-based payment are modified, at least the services obtained should be confirmed in accordance
with the unmodified terms. In addition, any modification that increases the fair value of the equity instruments granted, or a
change that is beneficial to employees on the modification date, is recognized as an increase in services received.
If the equity-settled share payment is canceled, it will be treated as an accelerated vesting on the cancellation day, and the
unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the non-vesting conditions
but fails to meet within the waiting period, it shall be treated as cancellation of equity-settled share-based payment. However, if a
new equity instrument is granted and it is determined on the date of grant of the new equity instrument that the new equity
instrument granted is used to replace the cancelled equity instrument, the granted substitute equity instruments shall be treated in
the same way as the modification of the original equity instrument terms and conditions.
(2) Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liability calculated and determined on the basis of shares
or other equity instruments undertaken by the Company. If it’s vested immediately after the grant, the fair value of the liability
assumed on the date of the grant is included in the cost or expense, and the liability is increased accordingly. If the service within
the waiting period is completed or the specified performance conditions are met, the service obtained in the current period shall be
included in the relevant costs or expenses based on the best estimate of the vesting situation within the waiting period and the fair
value of the liability assumed to increase the corresponding liability. On each balance sheet date and settlement date before the
settlement of the relevant liability, the fair value of the liability is remeasured, and the changes are included in the current profit
and loss.
31. Revenue
(1) Accounting policies used in revenue recognition and measurement
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; ② The customer can control the goods or
services in progress 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
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 received the goods; ⑥ Other signs that the customer has obtained
control of the goods.
2) Revenue measurement principle
①The 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.
④If 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.
(2) The Company's criteria for the recognition of commodity income and specific criteria for the recognition time:
The Company's domestic sales revenue recognition time: The Company shall deliver the goods according to the agreement of the
order, and check with the buyer the goods received and inspected by the buyer from the previous reconciliation date to the current
reconciliation date. After the check by both parties, the risks and rewards shall be transferred to the buyer. The Company shall
issue invoices to the buyer according to the varieties, quantities and amounts confirmed by the reconciliation and confirm the
realization of sales income on the reconciliation date.
The Company's foreign sales revenue recognition time: after the completion of the customs audit, the Company in accordance with
the export date specified in the customs declaration, to confirm the realization of sales revenue.
Differences in accounting policies for revenue recognition due to different operating models for the same type of business
Nil
32. Government grants
(1) Types
Government grants are transfer of monetary asset or non-monetary asset from the government to the Group at no consideration.
Government grants are classified into government grants related to asset and government grants related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for asset-related or income-
related grants are as: whether the grants turn to long-term asset 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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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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 government grant shall be measured at fair
value and it shall be measured by nominal amount in case the fair value can not be reliably acquired.
(3) Accounting treatment
The government grant related to an asset shall be recognized as deferred income, and reckoned into current gain/loss according to
the depreciation process in use life of such asset.
The government grant related to income which is used to make up relevant expenses and loss for later period shall be recognized
as deferred income, and be reckoned into current gain/loss during the period while relevant expenses are recognized; The
government grant related to income which is used to make up relevant expenses and loss that occurred shall be reckoned into
current gain/loss.
The government grant related to daily operation activity of the Company should be reckoned into other income; those without
related to daily operation activity should be reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall be used to write down relevant borrowing costs.
33. Deferred income tax asset/Deferred income tax liability
The Company adopts the balance sheet debt method to calculate deferred income tax based on the temporary difference between
the book value and tax basis of asset and liability on the balance sheet date, as well as the temporary difference between the book
value and tax basis of items that have not been recognized as asset and liability but can be determined according to tax laws.
All types of taxable temporary differences are recognized as deferred income tax liability, unless: ① taxable temporary differences
arise in the following transactions: initial recognition of goodwill, or initial recognition of asset or liability arising from a single
transaction with the following characteristics: the transaction is not a business merger. When the transaction occurs, it neither
affects accounting profits nor taxable income or deductible loss, and the initially recognized asset and liability do not result in
equal taxable temporary differences and deductible temporary differences; ② For taxable temporary differences related to
investments in subsidiaries, joint ventures, and associates, the timing of the reversal of such temporary differences can be
controlled, and it is likely that such temporary differences will not be reversed in the foreseeable future.
For deductible temporary differences that can be carried forward deductible loss in future years or deduce taxes, the Company
recognizes deferred income tax asset based on the future taxable income that is likely to be obtained to offset the deductible
temporary differences, deductible loss, and tax deductions that can be carried forward to future years, unless: ① the deductible
temporary differences arise from a single transaction that is not a business merger. The transaction does not affect accounting
profits or taxable income or deductible loss at the time of occurrence, and the initially recognized asset and liability do not result in
equivalent taxable temporary differences or deductible temporary differences. ② For deductible temporary differences related to
investments in subsidiaries, joint ventures, and associates, such temporary differences are likely to be reversed in the foreseeable
future and are likely to receive taxable income to be used to offset such temporary differences.
On the balance sheet date, the Company measures deferred income tax asset and liability in accordance with tax laws and
regulations, at the applicable tax rate during the expected period of asset recovery or liability settlement, and reflects the tax
impact of the expected method of asset recovery or liability settlement on the balance sheet date.
On the balance sheet date, the Company reviews the book value of deferred income tax asset. If it is likely that sufficient taxable
income will not be available in the future to offset the benefits of deferred income tax asset, the book value of deferred income tax
asset will be written down. On the balance sheet date, the Company reassesses unconfirmed deferred income tax asset and
recognizes deferred income tax asset to the extent that sufficient taxable income is likely to be available for the reversal of all or
part of the deferred income tax asset.
When the following conditions are met simultaneously, deferred income tax asset and deferred income tax liability is presented at
the net amount after offsetting: having the legal right to settle current income tax asset and current income tax liability at the net
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
amount; Deferred income tax asset and deferred income tax liability is related to the income tax levied by the same tax collection
and management department on the same taxable entity or on different taxpayers. However, in the period during which significant
deferred income tax asset and deferred income tax liability is reversed in the future, the involved taxpayers intend to settle the
current income tax asset and liability on a net basis or acquire asset and settle debts simultaneously.
34. Lease
(1) The Company as lessee
On the commencement date of the lease term, the Company recognizes leases with a lease term not exceeding 12 months and
excluding purchase options as short-term leases; Leases with lower value when a single leased asset is considered a brand new
asset is recognized as low value asset leases.
If the Company subleases or expects to sublease leased asset, the original lease is not recognized as a low value asset lease.
For all short-term leases and low value asset leases, the Company recognizes lease payments in the relevant asset cost or current
profit and loss on a straight-line basis during each period of the lease term.
Except for the simplified short-term leases and low value asset leases mentioned above, the Company recognizes the right-of-use
asset and lease liability for leases on the commencement date of the lease term.
1) Right-of-use asset
The right-of-use asset refers to the right of the lessee to use the leased asset during the lease term.
On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This cost includes:
①The initial measurement amount of lease liability; ②If the lease payment is made on or before the start date of the lease term
and the relevant amount of the lease incentive already enjoyed shall be deducted in case there is a lease incentive; ③The initial
direct expenses incurred by the lessee; ④The expected cost incurred by the lessee in dismantling and removing the leased asset,
restoring the site where the leased asset is located, or restoring the leased asset to the state agreed upon in the lease terms. The
Company recognizes and measures the cost in accordance with the recognition standards and measurement methods for estimated
liability, as detailed in Note V-29 “Accrued liability”. The aforementioned costs incurred for the production of inventory will be
included in the inventory cost.
The depreciation of right-of-use asset is classified and provisioned with the straight-line method. In case it can reasonably
determine that ownership of the leased asset will be obtained upon the expiration of the lease term, the depreciation rate shall be
determined based on the category of the right-of-use asset and the estimated net residual value rate within the expected remaining
useful life of the leased asset; In case it cannot reasonably determine that ownership of the leased asset will be acquired upon the
expiration of the lease term, the depreciation rate shall be determined based on the category of the right-of-use asset during the
shorter of the lease term and the remaining useful life of the leased asset.
2) Lease liability
Lease liability shall be initially measured at the present value of the lease payments that have not yet been paid on the
commencement date of the lease term. The lease payment amount includes the following five items: ① fixed payment amount and
substantial fixed payment amount. If there is a lease incentive, the relevant amount of the lease incentive shall be deducted; ②
Variable lease payments depending on index or ratio; ③ The exercise price of the purchase option, provided that the lessee
reasonably determines that the option will be exercised; ④ The amount to be paid for exercising the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease; ⑤ The expected amount to be
paid based on the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If the
interest rate implicit in the lease cannot be determined, the Company’s incremental borrowing rate is used as the discount rate. The
Company calculates the interest expense of the lease liability in each period of the lease term according to the fixed periodic
interest rate, and includes it in the current profit and loss, unless it is otherwise stipulated to be included in the cost of the relevant
93
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
asset. Variable lease payments that are not included in the measurement of lease liability is included in the current profit and loss
when they are actually incurred, unless otherwise stipulated to be included in the cost of the relevant asset.
After the commencement date of the lease term, when there is a change in the in-substance fixed payment, or a change in the
estimated amount payable for the guaranteed residual value, or a change in the index or ratio used to determine the lease payment,
or a change in the evaluation results of the purchase option, renewal option or termination option or when the actual exercise
situation changes, the Company shall re-measure the lease liability according to the present value of the changed lease payments.
(2) The Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost all the risks and
rewards related to the ownership of the leased asset as financial leases, and all other leases are operating leases.
1) Operating lease
During each period of the lease term, the lease receipts is recognized by the Company as rental income with straight-line method,
and the initial direct expenses incurred are capitalized, amortized on the same basis as the recognition of rental income, and
included in the current profit and loss by stages. The variable lease payments obtained by the Company related to operating leases
that are not included in the lease receipts are booked in the current profits and loss when actually incurred.
2) Finance lease
On the beginning date of the lease term, the financial lease receivables is recognized by the Company according to the net amount
of the lease investment (the sum of the unsecured residual value and the present value of the lease collection not received on the
beginning date of the lease term discounted according to the embedded interest rate of the lease), and terminates the recognition of
the financial lease asset. During each period of the lease term, the Company calculates and recognizes the interest income
according to the interest rate embedded in the lease. The amount of variable lease payments obtained by the Company that are not
included in the measurement of net lease investment shall be included in the current profit and loss when actually incurred.
35. Other major accounting policy and estimation
Nil
36. Changes of important accounting policies and estimation
(1) Changes of important accounting policies
□Applicable Not applicable
(2) Changes of important accounting estimation
□Applicable Not applicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2024, and
implementation of relevant financial statement items at the beginning of the year for the first time
□Applicable Not applicable
37. Others
Nil
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
The output tax is calculated based on the taxable
25%(IRD,Denmark), 22%(VHIO，
income, and VAT is calculated based on the difference
VAT Italy),21%(Borit,Belgium), 13%, 9%, 6%,
after deducting the input tax available for deduction for
Collection rate 5%
the current period
City maintaining &
Turnover tax payable 7%,5%
construction tax
15%, 20%,21% , 22%, 25%, 24% + region tax
Corporation income tax Taxable income
3.9%
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
The Company, WFJN, WFLD, WFTT, WFAM, WFSC, WFLD(Chongqing) 15%
WFLD(Wuhan), WFLD(Nanchang) 20%
IRD America, Borit America 21%
IRD(Denmark)) 22%
WFCA, WFTR, WFDT, WFQL, VHWX,WFAS, Borit(Belgium), WFLH, WFSS 25%
VHIO(Italy) 24% + region tax 3.9%
2. Tax incentives
The Company, WFJN, WFLD, WFTT, WFMA, WFAM and WFSC are high-tech enterprises and enjoy a preferential income tax
rate of 15% in 2024.
According to the “Continuation of the Enterprise Income Tax Policies for Western Development” No.23 (Year of 2020) issued
together by Ministry of Finance, SAT and NDRC, from January 1, 2011 to December 31, 2030, the enterprises located in the west
region and mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industries in Western China,
and whose main business income accounting for more than 60% of the total income of the enterprise in the current year can pay
the corporate income tax at the tax rate of 15%. In 2024, WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.
In 2024, WFLD(Wuhan) and WFLD(Nanchang) meet the standards for small and micro profit enterprises. According to the
“Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and
Commercial Households Related No.2023), the taxable income of small and micro profit enterprises will be reduced by 25%, and
the enterprise income tax policy will be paid at a rate of 20%, which will continue to be implemented until December 31, 2027.
3. Other
Nil
VII. Notes to major items in consolidated financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 3,066.79 6,343.24
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Cash in bank 2,583,949,629.11 2,241,980,351.17
Other monetary funds 142,007,827.59 32,785,004.73
Total 2,725,960,523.49 2,274,771,699.14
Including: total amount of funds deposited overseas 137,129,527.39 126,839,309.52
Other explanation
The ending balance of other monetary funds includes bank acceptance bill deposit 128,231,135.19 yuan, cash deposit for
Mastercard 204,620.00 yuan, in-transit dividends 1,309,380.00, IRD performance bond 7,673,250.00 yuan, the in-transit funds
4,585,442.40, ETC frozen amount of 4,000.00 yuan. The in-transit dividends 1,309,380.00 yuan was a portion of the dividend
distributed by Miracle Automation (002009), a trading financial asset held by the Company, from 2017 to 2023, which was not
transferred to the Company’s current account due to account issues.
2. Trading financial asset
In RMB
Item Ending balance Opening balance
Financial asset measured at fair value and whose changes are
1,431,717,057.05 2,391,487,144.96
included in current profit or loss
Including:
SNAT 42,599,328.00 76,756,716.00
Miracle Automation 53,411,400.00 71,073,900.00
Other debt and equity instrument investments 1,335,706,329.05 2,243,656,528.96
Including：
Total 1,431,717,057.05 2,391,487,144.96
3. Note receivable
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Trade acceptance bill 111,953,406.82 144,976,174.84
Total 111,953,406.82 144,976,174.84
(2) Accrued of bad debt provision
In RMB
Ending balance Opening balance
Provision for bad Provision for bad
Category Book balance Book value
debts debts
Book value Book value
Amoun Accrua Amoun Accrua
Amount Ratio Amount Ratio
t l ratio t l ratio
Including:
Note
receivable
with
provision 111,953,406.8 100.00 111,953,406.8 144,976,174.8 100.00 144,976,174.8
for bad 2 % 2 4 % 4
debts
accrual on
portfolio
Including:
96
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Portfolio
1: bank
acceptanc
e bill
Portfolio
2: trade 111,953,406.8 100.00 111,953,406.8 144,976,174.8 100.00 144,976,174.8
acceptanc 2 % 2 4 % 4
e bill
111,953,406.8 100.00 111,953,406.8 144,976,174.8 100.00 144,976,174.8
Total
2 % 2 4 % 4
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit loss, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□Applicable Not applicable
(3) Provision for bad debts accrual, collected or reversal
Provision for bad debts in the current period:
□ Applicable Not applicable
(4) Notes receivable already pledged by the Company at the end of the reporting period
□ Applicable Not applicable
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Note receivable actually written-off in the reporting period
Nil
4. Account receivable
(1) By account age
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 3,700,686,063.72 3,841,921,162.54
Including: within 6 months 3,595,955,390.16 3,732,178,445.50
6 months to one year 104,730,673.56 109,742,717.04
1-2 years 25,537,095.82 26,336,964.64
2-3 years 8,072,765.00 13,723,160.78
Over 3 years 27,830,761.56 57,510,391.30
3-4 years 5,588,622.65 5,607,074.80
4-5 years 3,775,810.94 19,615,877.12
> 5 years 18,466,327.97 32,287,439.38
Total 3,762,126,686.10 3,939,491,679.26
97
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) Accrued of bad debt provision
In RMB
Ending balance Opening balance
Category Book balance Bad debt reserve Book balance Bad debt reserve
Book
Accrue Accrued Book value
Amount Ratio Amount value Amount Ratio Amount
d ratio ratio
Account
receivable
with bad
debt 20,428,693.6 20,428,693.6 100.00 53,281,8 53,281,8
0.54% 1.35% 100.00%
provision 3 3 % 43.03 43.03
accrued on
a single
basis
Including:
Account
receivable
with bad 3,712,9
3,741,697,99 99.46 28,739,345.5 3,886,20 28,669,8 3,857,539,9
debt 0.77% 58,646. 98.65% 0.74%
2.47 % 8 9,836.23 78.03 58.20
provision 89
accrued on
portfolio
Including:
3,712,9
3,762,126,68 100.00 49,168,039.2 3,939,49 81,951,7 3,857,539,9
Total 1.31% 58,646. 100.00% 2.08%
6.10 % 1 1,679.26 21.06 58.20
89
Bad debt provision accrued on single basis:
In RMB
Opening balance Ending balance
Name
Book balance Bad debt reserve Book balance Bad debt reserve Accrued ratio Accrued causes
Hubei Meiyang Auto
17,610,371.91 17,610,371.91
Industry Co., Ltd.
Hunan Leopaard Auto Co.,
8,077,361.13 8,077,361.13
Ltd.
BD bills 4,270,595.02 4,270,595.02
Linyi Zotye Automobile
Components Manufacturing 6,193,466.77 6,193,466.77 6,193,466.77 6,193,466.77 100.00% Difficult to receive
Co., Ltd.
Tongling Ruineng
4,320,454.34 4,320,454.34 4,320,454.34 4,320,454.34 100.00% Difficult to receive
Purchasing Co., Ltd.
Brilliance Automotive
3,469,091.33 3,469,091.33 2,693,280.39 2,693,280.39 100.00% Difficult to receive
Group Holdings Co., Ltd.
Dongfeng Chaoyang Diesel
1,823,262.64 1,823,262.64 1,823,262.64 1,823,262.64 100.00% Difficult to receive
Co., Ltd.
Jiangsu Kawei Auto
1,932,476.26 1,932,476.26
Industrial Group Co., Ltd.
Jiangsu Jintan Automobile
1,059,798.43 1,059,798.43 1,059,798.43 1,059,798.43 100.00% Difficult to receive
Industry Co., Ltd.
Tianjin Levol Engine Co.,
1,018,054.89 1,018,054.89 1,018,054.89 1,018,054.89 100.00% Difficult to receive
Ltd.
Other clients 3,506,910.31 3,506,910.31 3,320,376.17 3,320,376.17 100.00% Difficult to receive
Total 53,281,843.03 53,281,843.03 20,428,693.63 20,428,693.63
Bad debt provision accrued on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio
Within 6 months 3,595,955,390.16
6 months to one year 101,922,134.50 10,192,213.44 10.00%
98
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
1-2 years 25,537,095.82 5,107,419.15 20.00%
2-3 years 8,072,765.00 3,229,106.00 40.00%
Over 3 years 10,210,606.99 10,210,606.99 100.00%
Total 3,741,697,992.47 28,739,345.58
Explanation on determining the basis for this portfolio: Nil
The provision for bad debts of accounts receivable is made in accordance with the general model of expected credit loss:
□ Applicable Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
Amount changed in the reporting period
Category Opening balance Collected or Ending balance
Accrued Charged off Other
reversal
Bad debt provision 81,951,721.06 6,592,185.53 10,948,516.61 28,343,673.25 -83,677.52 49,168,039.21
Total 81,951,721.06 6,592,185.53 10,948,516.61 28,343,673.25 -83,677.52 49,168,039.21
Significant amount of bad debt provision accrued collected or reversal in current period: Nil
(4) Account receivable actually charged off in the reporting period
In RMB
Item Amount charged off
Account receivable actually charged off 28,343,673.25
Major account receivable charged off:
In RMB
Charged off Generated by
Feature of account Amount Reason
Name procedures related
receivable charged off charged off
implemented transaction?(Y/N)
Hubei Meiyang Auto Industry Co., Intercourse funds of Approved by the
17,313,155.08 Uncollectible N
Ltd. unit Company
Intercourse funds of Approved by the
Hunan Leopaard Auto Co., Ltd. 8,003,712.40 Uncollectible N
unit Company
Jiangsu Kawei Auto Industrial Group Intercourse funds of Approved by the
1,932,476.26 Uncollectible N
Co., Ltd. unit Company
Intercourse funds of Approved by the
Chongqing Zotye Auto Co., Ltd. 713,685.08 Uncollectible N
unit Company
Huachen Renault Jinbei Automobile Intercourse funds of Approved by the
342,016.43 Uncollectible N
Co., Ltd unit Company
Intercourse funds of Approved by the
BAIC Ruili Auto Co., Ltd 38,628.00 Uncollectible N
unit Company
Total 28,343,673.25
Explanation on reason charged off: Nil
(5) Top five receivables and contract asset at ending balance by arrears party
In RMB
Ending balance of Ending Ending balance of Ratio in total ending balance Ending balance of
Name account balance of account receivable of account receivables and reserve for bad debts
receivable contract asset and contract asset contract asset and contract asset
RBCD 732,084,006.85 732,084,006.85 19.46% 1,170,780.48
Bosch 543,715,050.47 543,715,050.47 14.45% 2,251,804.00
99
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Client 3 273,870,906.47 273,870,906.47 7.28% 399,249.28
Client 4 214,791,670.34 214,791,670.34 5.71% 77,024.49
Client 5 127,659,519.67 127,659,519.67 3.39% 759,318.12
Total 1,892,121,153.80 1,892,121,153.80 50.29% 4,658,176.37
5. Receivable financing
(1) Category of receivable financing
In RMB
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 1,861,606,949.90 1,661,749,949.46
Total 1,861,606,949.90 1,661,749,949.46
Other explanation:
In the process of managing the liquidity of the Company, some bills will be discounted or endorsed for transfer before maturity.
The business model of managing accounts receivable aims to collect contractual cash flows and sell the financial asset, so it is
classified as a financial asset measured at fair value with changes recognized in other comprehensive income and listed in accounts
receivable financing.
(2) Accrued of bad debt provision
Basis for division of each stage and provision ratio for bad debt provision
Nil
Explanation of significant changes in the financing book balance of accounts receivable with changes in loss provisions in the
current period:
Nil
(3) Bad debt provision accrued, collected or reversal
Other explanation: Nil
(4) Receivable financing already pledged by the Company at period-end
In RMB
Item Amount pledge at period-end
Bank acceptance bill 897,650,012.34
Total 897,650,012.34
(5) Notes endorsement or discount and undue on balance sheet date
Item Amount derecognized at period-end Amount not derecognized at period-end
Bank acceptance bill 616,663,285.46
Trade acceptance bill
Total 616,663,285.46
100
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(6) Receivable financing actually charged off in current period
Nil
(7) Increase/decrease of receivable financing and changes in fair value of receivable financing in current
period
Nil
(8) Other explanation
Nil
6. Other account receivables
In RMB
Item Ending balance Opening balance
Dividend receivable 872,701,558.93
Other account receivables 922,853,004.63 919,684,126.81
Total 1,795,554,563.56 919,684,126.81
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrued of bad debt provision
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Interest receivable actually charged off in current period
Nil
101
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) Dividend receivable
1) Category of dividend receivable
In RMB
Item (or invested enterprise) Ending balance Opening balance
WFEC 73,500,000.00
RBCD 527,829,600.44
Zhonglian Electronics 266,000,000.00
WFPM 5,357,758.49
Guolian Securities 14,200.00
Total 872,701,558.93
2) Important dividend receivable with account age over one year
Nil
3) Accrued of bad debt provision
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal in current period
Nil
5) Dividend receivable actually charged off in current period
Nil
(3) Other accounts receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds from units 4,161,124.36 4,084,594.65
Cash deposit 14,157,787.09 10,215,094.41
Staff loans and petty cash 1,540,213.27 904,305.07
Social security and provident fund paid 11,755,472.65 12,537,832.68
WFTR “platform trade” business portfolio 2,542,263,370.70 2,542,263,370.70
Other 163,015.67 38,770.10
Total 2,574,040,983.74 2,570,043,967.61
2) By aging
In RMB
102
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Aging Ending book balance Opening book balance
Within one year (One year included) 22,674,290.11 18,850,121.91
Within 6 months 20,991,997.44 18,448,595.63
6 months to one year 1,682,292.67 401,526.28
1-2 years 2,004,023,844.14 2,544,896,026.07
2-3 years 541,416,353.54 954,984.11
Over 3 years 5,926,495.95 5,342,835.52
3-4 years 4,843,422.94 4,524,432.51
4-5 years 1,026,000.00 801,603.01
Over 5 years 57,073.01 16,800.00
Total 2,574,040,983.74 2,570,043,967.61
3) Accrued bad debt provision
Applicable □Not applicable
Expected credit loss general model for provision of bad debt reserves:
In RMB
Phase I Phase II Phase III
Bad debt reserve Expected credit loss for the Expected credit loss for the Total
Expected credit loss over
entire duration (without entire duration (with credit
next 12 months
credit impairment occurred) impairment occurred)
Balance on Jan. 1, 2024 6,259,786.07 1,644,100,054.73 1,650,359,840.80
Balance of Jan. 1, 2024 in
the reporting period
Current accrued 865,695.62 865,695.62
Other changes -37,557.31 -37,557.31
Balance on June 30, 2024 7,087,924.38 1,644,100,054.73 1,651,187,979.11
Changes in book balance with significant changes in the amount of loss provision for the current period
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
Change in current period
Category Opening balance Collected or Ending balance
Accrued Charged off Other
reversal
Bad debt provision 1,650,359,840.80 865,695.62 -37,557.31 1,651,187,979.11
Total 1,650,359,840.80 865,695.62 -37,557.31 1,651,187,979.11
Major bad debt provision collected or reversal in current period: Nil
5) Other accounts actually charged off during the reporting period
Nil
6) Top 5 other accounts receivable at ending balance by arrears party
In RMB
Ratio in total ending Ending balance of
Enterprise Nature Ending balance Aging
balance of other bad debt reserve
103
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
accounts receivables
WFTR “platform trade” business See “Other
2,542,263,370.70 1-3 years 98.77% 1,644,068,327.93
portfolio explanations”
BYD Deposit margin 3,800,000.00 Within 1 year 0.15% 130,000.00
Bosch Prepaid freight 2,255,998.16 Within 6 months 0.09%
Wuxi China Resources Gas Co.
Deposit margin 1,364,750.00 Over 3 years 0.05% 1,364,750.00
LTD
Zhenkunxing Industrial
Supermarket (Shanghai) Co., Deposit margin 1,000,000.00 Over 3 years 0.04% 1,000,000.00
LTD
Total 2,550,684,118.86 99.10% 1,646,563,077.93
Other explanations: For details of WFTR “platform trade” business portfolio, please refer to the description in Note-XVIII, 7 “Other
Significant Transactions and Matters Affecting Investors' Decisions”. The ending balance of WFTR’s “platform trade” business
portfolio balance include the balance of other receivables listed in Note-XIV. 6(3).
7) Listed as other receivables due to centralized fund management
Nil
7. Account paid in advance
(1) By aging
In RMB
Ending balance Opening balance
Aging
Amount Ratio Amount Ratio
Within one year 58,024,453.83 73.22% 56,627,071.44 74.31%
1-2 years 17,294,579.76 21.82% 17,692,490.92 23.22%
2-3 years 3,086,343.65 3.89% 1,879,201.90 2.47%
Over 3 years 850,383.87 1.07% 3,506.90
Total 79,255,761.11 76,202,271.16
Explanation of the reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timely
manner: Nil
(2) Top 5 accounts paid in advance at ending balance by prepayment object
In RMB
Ending amount of Proportion in total ending amount
Name
accounts paid in advance of accounts paid in advance(%)
Huitian Engineering Technology Co., Ltd 9,206,995.00 11.62
State Grid Jiangsu Electric Power Co., Ltd. Wuxi Power
5,427,291.39 6.85
Supply Branch
CITIC Pacific Special Steel 3,952,615.17 4.99
Daye Special Steel Co., Ltd 3,730,243.90 4.71
Xiangyang Kanghao Electromechanical Engineering Co., Ltd 3,509,743.08 4.43
Total 25,826,888.54 32.60
8. Inventory
Does the Company need to comply with disclosure requirements in the real estate industry?
104
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
No
(1) Category of inventory
In RMB
Ending balance Opening balance
Inventory depreciation Inventory depreciation
Item reserve or provision for reserve or provision for
Book balance Book value Book balance Book value
impairment of contract impairment of contract
performance costs performance costs
Stock
568,970,143.87 104,597,883.89 464,372,259.98 590,057,187.69 116,560,014.49 473,497,173.20
materials
Goods in
453,226,811.99 35,517,165.28 417,709,646.71 463,097,639.20 30,595,290.34 432,502,348.86
process
Finished
1,147,406,654.19 137,658,963.27 1,009,747,690.92 1,336,512,057.06 173,978,548.18 1,162,533,508.88
goods
Total 2,169,603,610.05 277,774,012.44 1,891,829,597.61 2,389,666,883.95 321,133,853.01 2,068,533,030.94
(2) Data resource defined as inventory
Nil
(3) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
Current increase Current decrease
Item Opening balance Translation of Ending balance
Reversal or write-
Accrued foreign currency Other
off
statements
Stock materials 116,560,014.49 22,237,479.58 -376,357.67 33,823,252.51 104,597,883.89
Goods in process 30,595,290.34 9,727,439.89 -323,483.61 4,482,081.34 35,517,165.28
Finished goods 173,978,548.18 34,838,359.63 -140,087.94 71,017,856.60 137,658,963.27
Total 321,133,853.01 66,803,279.10 -839,929.22 109,323,190.45 277,774,012.44
① The net realizable value of inventory refers to the estimated selling price of inventory in daily activities, minus the estimated costs
to be incurred until completion, estimated sales expenses, and related taxes.
② Accrued basis for inventory depreciation reserve:
Accrued 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 cost what will
Materials in stock manufactured, its net realizable value is lower
happen, estimated sales expenses and relevant taxes till the goods completed
than the book value
The goods in process sold due to finished
Results from the estimated sale price of such inventory less the cost what will
Goods in process goods manufactured, its net realizable value
happen, estimated sales expenses and relevant taxes till the goods completed
is lower than the book value
its net realizable value is lower than the book Results from the amount based on the estimated selling price minus the various
Finished goods
value taxes and fees that need to be borne during the sales process
③ Reasons of inventory depreciation reserves written off in current period:
Cash on hand Reasons of written off
Materials in stock Used for production and the finished goods are realized sales
Goods in process completed in the the reporting period and corresponding finished goods are realized sales in
Goods in process
the reporting period
Finished goods Sales in the the reporting period
105
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(4) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(5) Explanation of the current amortization amount of contract performance cost
Nil
(6) Other credit investment maturing within one year
Nil
9. Other current asset
In RMB
Item Ending balance Opening balance
Receivable export tax rebates 9,234,636.96 9,103,488.70
VAT refund receivable 66,459,355.67 114,079,600.14
Prepaid taxes and VAT retained 140,545,153.29 173,908,288.11
Input tax to be deducted and certification 15,111.22 2,162,292.69
Other 22,054,861.33 26,655,713.47
Total 238,309,118.47 325,909,383.11
10. Other equity instrument investment
In RMB
Reasons for
Accumulated
Accumulated designating fair
Gain Loss gain
loss recognized Dividend value
recognized in recognized in recognized in
in other income measurement
Opening other other other
Item comprehensive recognized Ending balance with changes
balance comprehensive comprehensive comprehensive
income at the in this recognized in
income for the income for the income at the
end of this period other
current period current period end of this
period comprehensive
period
income
Wuxi
Non-trading
Xichang
equity
Microchip 592,742,690.00 592,742,690.00
instrument
Semi-
investments
Conductor
Non-trading
equity
Other 85,048,000.00 85,048,000.00
instrument
investments
Total 677,790,690.00 677,790,690.00
There are items derecognized in current period: Nil
Sub-item disclosure of current non-trading equity instrument investments
In RMB
Reasons for
defining fair value Reasons for
Amount of other
measurement with transferring other
comprehensive
Item Dividends income Accumulated gain Accumulated loss changes recognized comprehensive
income transferred
in other income to retained
to retained earnings
comprehensive earnings
income
Wuxi Xichan Non-trading equity
Microchip Semi- instrument Not applicable
Conductor investments
106
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Non-trading equity
Other instrument Not applicable
investments
Other explanation: Nil
11. Long-term equity investment
In RMB
Current changes (+/ -)
Opening Investm Ending
Opening balance Other Cash Ending balance
ent
Invested balance of Additio compreh dividend Depreci balance of
Capital gain/los Other
entity (book deprecia nal ensive or profit ation (book deprecia
reductio s equity Other
value) tion investm income announc reserves value) tion
n recogniz change
reserve ent adjustm ed to accrued reserves
ed under
ent issued
equity
I. Joint venture
II. Associated enterprise
915,511, 108,675, 1,092,64 122,500, 902,779,
WFEC
847.44 061.86 7.52 000.00 556.82
3,015,30 383,623, 527,829, 2,871,10
RBCD
7,291.83 493.62 600.44 1,185.01
Zhongli
an 1,685,50 250,991, 266,000, 1,670,49
Electron 2,046.73 619.50 000.00 3,666.23
ic
41,464,1 1,804,46 783,350. 5,357,75 38,694,2
WFPM
95.65 6.43 57 8.49 54.16
Changc -
9,082,82 8,747,25
hun 335,570.
3.79 3.62
Xuyang 17
-
8,587,48 2,064,78 10,428,0
Precors 224,203.
9.62 5.86 72.00
48
- -
Autolin 182,680, 178,954,
2,504,18 1,221,90
k 857.61 770.11
7.11 0.39
-
Lezhuo 89,496,9 110,000, 185,801,
13,695,4
Bowei 54.40 000.00 521.98
32.42
-
Zhuowe 27,300,0 27,270,8
29,167.8
i Times 00.00 32.17
3
-
5,947,63 137,300, 730,595, 654,097. 921,687, 5,894,27
Subtotal 224,203.
3,507.07 000.00 069.74 70 358.93 1,112.10
48
-
5,947,63 137,300, 730,595, 654,097. 921,687, 5,894,27
Total 224,203.
3,507.07 000.00 069.74 70 358.93 1,112.10
48
Note: Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. was renamed into Wuxi Weifu Precision Machinery
Manufacturing Company Limited on Feburary 28, 2024.
Explanation on those holding less than 20% of the voting rights but with significant influence:
(1) Autolink
The Company holds 9.6372% equity of Autolink, and appointed a director to Autolink. Though the representative, the Company
can participate in the operation policies formulation of Autolink, and thus exercise a significant influence over Autolink.
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
107
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Nil
Reasons for significant discrepancies between the information used in the Company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation: Nil
12. Other non-current financial asset
In RMB
Item Ending balance Opening balance
Guolian Securities 964,000.00 1,084,000.00
Investments in other debt instruments and equity
668,636,925.15 803,266,120.06
instruments held for more than one year
Total 669,600,925.15 804,350,120.06
13. Investment real estate
(1) Investment real estate measured by cost
Applicable □ Not applicable
In RMB
House and Construction in
Item Land use right Total
Building progress
I. Original book value
1.Opening balance 95,327,686.03 95,327,686.03
2.Current increased
(1) Outsourcing
(2) Inventory\fixed
asset\construction in process
transfer-in
(3) Increased by combination
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 95,327,686.03 95,327,686.03
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 48,400,969.54 48,400,969.54
2.Current increased 1,020,828.04 1,020,828.04
(1) Accrued or amortization 1,020,828.04 1,020,828.04
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 49,421,797.58 49,421,797.58
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3. Current decreased
108
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending Book value 45,905,888.45 45,905,888.45
2.Opening Book value 46,926,716.49 46,926,716.49
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Nil
Reasons for significant discrepancies between the information used in the Company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation: Nil
(2) Investment real estate measured at fair value
□ Applicable Not applicable
(3) Converted into investment real estate and measured at fair value
Nil
(4) Investment real estate without property certification held
Nil
14. Fixed asset
In RMB
Item Ending balance Opening balance
Fixed asset 3,958,946,658.33 3,969,574,102.87
Total 3,958,946,658.33 3,969,574,102.87
(1) Fixed asset
In RMB
House and Machinery Transportation Electronic and
Item Land Total
Building equipment equipment other equipment
I. Original book
value:
1.Opening
2,032,107,555.67 5,006,902,151.83 42,039,805.21 1,236,400,092.39 32,275,299.13 8,349,724,904.23
balance
2.Current
57,656,278.39 133,092,401.20 870,681.40 94,563,468.21 286,182,829.20
increased
109
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(1) Purchase 640,532.17 1,074,600.67 4,805,357.37 6,520,490.21
(2) Construction
in progress 57,015,746.22 132,017,800.53 870,681.40 89,758,110.84 279,662,338.99
transfer-in
(3)Increased by
combination
3.Current
11,485.04 10,921,862.09 1,976,232.74 25,843,259.24 38,752,839.11
decreased
(1) Disposal or
11,485.04 10,921,862.09 1,976,232.74 25,843,259.24 38,752,839.11
scrapping
4.Conversion of
foreign currency
-3,502,524.78 -12,090,911.25 -2,592.59 -8,597,274.41 -811,212.05 -25,004,515.08
financial
statement
5.Ending balance 2,086,249,824.24 5,116,981,779.69 40,931,661.28 1,296,523,026.95 31,464,087.08 8,572,150,379.24
II. Accumulated
depreciation
1.Opening
605,180,085.15 2,741,676,537.83 23,008,286.27 804,954,516.26 4,174,819,425.51
balance
2.Current
33,501,759.93 137,370,052.50 1,782,232.66 109,149,642.64 281,803,687.73
increased
(1) Accrued 33,501,759.93 137,370,052.50 1,782,232.66 109,149,642.64 281,803,687.73
3.Current
9,575,434.52 1,800,910.65 16,972,190.47 28,348,535.64
decreased
(1) Disposal or
9,575,434.52 1,800,910.65 16,972,190.47 28,348,535.64
scrapping
4.Conversion of
foreign currency
-1,528,336.23 -7,734,899.93 134.82 -6,859,580.90 -16,122,682.24
financial
statement
5.Ending balance 637,153,508.85 2,861,736,255.88 22,989,743.10 890,272,387.53 4,412,151,895.36
III. Depreciation
reserves
1.Opening
14,920,553.54 152,003,807.08 73,319.90 22,287,693.43 16,046,001.90 205,331,375.85
balance
2.Current
increased
(1) Accrued
3.Current
1,136,541.33 382,209.66 1,518,750.99
decreased
(1) Disposal or
1,136,541.33 382,209.66 1,518,750.99
scrapping
4.Conversion of
foreign currency
-375,015.35 -1,649,714.31 -332,767.11 -403,302.54 -2,760,799.31
financial
statement
5.Ending balance 14,545,538.19 149,217,551.44 73,319.90 21,572,716.66 15,642,699.36 201,051,825.55
IV. Book value
1.Ending Book
1,434,550,777.20 2,106,027,972.37 17,868,598.28 384,677,922.76 15,821,387.72 3,958,946,658.33
value
2.Opening Book
1,412,006,916.98 2,113,221,806.92 18,958,199.04 409,157,882.70 16,229,297.23 3,969,574,102.87
value
(2) Temporarily idle fixed asset
Nil
(3) Fixed asset acquired by operating lease
Nil
110
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(4) Fixed asset without property certification held
In RMB
Item Book value Reasons for without the property certification
Plant and office building of WFCA 29,798,747.27 Still in process of relevant property procedures
(5) Impairment testing of fixed asset
□Applicable Not applicable
(6) Disposal of fixed asset
Nil
15. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 682,829,406.56 564,605,931.90
Total 682,829,406.56 564,605,931.90
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Renovation of Xinan Branch,
No. 1 workshop of the 217,324,382.16 217,324,382.16 148,242,724.89 148,242,724.89
Company
Lot 103 phase VI 18,559,375.04 18,559,375.04 7,509,742.36 7,509,742.36
Production line and
equipment under installation 427,384,818.52 184,615.38 427,200,203.14 391,286,034.94 184,615.38 391,101,419.56
and debugging
Sporadic construction and
5,315,167.92 5,315,167.92 5,265,721.92 5,265,721.92
installation projects
Software and system under
14,430,278.30 14,430,278.30 12,486,323.17 12,486,323.17
installation and debugging
Total 683,014,021.94 184,615.38 682,829,406.56 564,790,547.28 184,615.38 564,605,931.90
(2) Changes of major construction in progress
In RMB
Accumu
Fixed Proporti including Interest
Other lated
asset on of : interest capitali
Current decrease amount
Bud Opening transfer- Ending project capitalize zation Source
Item increase d in the Progress of
get balance in in the balance investm d amount rate of of funds
d reportin interest
reportin ent in of the the
g period capitaliz
g period budget year year
ation
Renovation Compan
of Xinan y
Branch, No. 148,242, 69,081,6 217,324, accumul
51.40% 51.40%
1 workshop 724.89 57.27 382.16 ates
of the funds
Company
Lot 103 7,509,74 11,049,6 18,559,3 Compan
23.00% 23%
phase VI 2.36 32.68 75.04 y
111
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
accumul
ates
funds
155,752, 80,131,2 235,883,
Total
467.25 89.95 757.20
(3) The depreciation reserves of construction in progress
In RMB
Opening Reason for
Item Current increase Current decrease Ending balance
balance withdrawal
Equipment Equipment debugging
184,615.38 184,615.38
installation acceptance failed
Total 184,615.38 184,615.38 --
(4) Impairment testing of construction in progress
□Applicable Not applicable
(5) Engineering material
Other explanation: Nil
16. Right-of-use asset
(1) Right-of-use asset
In RMB
Item Building Mechanical equipment Total
I. Original book value:
1.Opening balance 54,412,701.74 26,999,713.53 81,412,415.27
2.Current increased 5,999,502.50 192,611.06 6,192,113.56
(1)Increased lease 5,999,502.50 192,611.06 6,192,113.56
3.Current decreased 4,207,968.93 4,207,968.93
(1) Disposal 4,207,968.93 4,207,968.93
4. Conversion of foreign
-862,246.33 -487,202.74 -1,349,449.07
currency financial statement
5.Ending balance 59,549,957.91 22,497,152.92 82,047,110.83
II. Accumulated depreciation
1.Opening balance 20,705,961.48 11,873,980.94 32,579,942.42
2.Current increased 5,091,190.84 3,098,280.21 8,189,471.05
(1) Accrued 5,091,190.84 3,098,280.21 8,189,471.05
3.Current decreased 4,207,968.93 4,207,968.93
(1) Disposal 4,207,968.93 4,207,968.93
4. Conversion of foreign
-208,812.54 -199,492.82 -408,305.36
currency financial statement
5.Ending balance 25,588,339.78 10,564,799.40 36,153,139.18
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
112
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending Book value 33,961,618.13 11,932,353.52 45,893,971.65
2.Opening Book value 33,706,740.26 15,125,732.59 48,832,472.85
(2) Impairment testing of right-of-use asset
□Applicable Not applicable
17. Intangible asset
(1) Intangible asset
In RMB
Patent and non- Computer Trademark and
Item Land use right Total
patent technology software trademark license
I. Original book value
1.Opening balance 372,945,018.62 265,193,677.79 214,863,628.61 41,597,126.47 894,599,451.49
2.Current increased 46,498,486.73 10,842,570.88 57,341,057.61
(1) Purchase 4,327.75 665,710.81 670,038.56
(2) Internal R&D
(3) Increased by
combination
(4)Transfer from
46,494,158.98 10,176,860.07 56,671,019.05
construction in progress
3.Current decreased 12,529.94 12,529.94
(1)Disposal or
12,529.94 12,529.94
scrapping
4.Conversion of foreign
currency financial -6,166,612.08 -443,590.97 -6,610,203.05
statement
5.Ending balance 419,443,505.35 259,027,065.71 225,250,078.58 41,597,126.47 945,317,776.11
II. Accumulated
amortization
1.Opening balance 113,015,433.79 109,623,226.43 160,301,847.95 9,709,000.00 392,649,508.17
2.Current increased 4,039,216.52 11,380,495.87 20,197,809.56 927,799.60 36,545,321.55
(1)Accrued 4,039,216.52 11,380,495.87 20,197,809.56 927,799.60 36,545,321.55
3.Current decreased 12,529.94 12,529.94
(1)Disposal 12,529.94 12,529.94
4.Conversion of foreign
currency financial -2,740,676.76 -270,367.28 -3,011,044.04
statement
5.Ending balance 117,054,650.31 118,263,045.54 180,216,760.29 10,636,799.60 426,171,255.74
III. Depreciation
reserves
1.Opening balance 468,160.79 16,646,900.00 17,115,060.79
2.Current increased
(1)Accrued
3.Current decreased
113
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(1)Disposal
4.Conversion of foreign
currency financial -11,766.83 -11,766.83
statement
5.Ending balance 456,393.96 16,646,900.00 17,103,293.96
IV. Book value
1.Ending Book value 302,388,855.04 140,764,020.17 44,576,924.33 14,313,426.87 502,043,226.41
2.Opening Book value 259,929,584.83 155,570,451.36 54,093,619.87 15,241,226.47 484,834,882.53
The proportion of intangible asset formed through internal R&D of the Company to the balance of intangible asset at the end of the
reporting period.
(2) Data source determined for intangible asset
Nil
(3) Land use right without property certification held
Other explanation: Nil
(4) Impairing test of intangible asset
□Applicable Not applicable
18. Goodwill
(1) Original book value of goodwill
In RMB
The invested Current increased Current decreased
entity or matters Opening balance Formed by business Translation of foreign Ending balance
forming goodwill Disposal
combination currency statements
Merged with
1,784,086.79 1,784,086.79
WFTL
Merged with Borit 248,965,678.87 -7,207,149.96 241,758,528.91
Total 250,749,765.66 -7,207,149.96 243,542,615.70
(2) Goodwill depreciation reserve
In RMB
The invested Current increased Current decreased
entity or matters Opening balance Formed by business Translation of foreign Ending balance
forming goodwill Disposal
combination currency statements
Merged with
WFTT
Merged with Borit 128,432,946.46 -3,717,924.13 124,715,022.33
Total 128,432,946.46 -3,717,924.13 124,715,022.33
114
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(3) Related information of asset group or asset portfolio of the goodwill
Is consistent with
Name Component and basis for asset group or asset portfolio Operation branch and basis
previous year?
Long term asset related to the merger of WFTT goodwill; The
Automotive intake system
management made it clear that this asset group will be used and
WFTT product division; Category of Yes
operated independently of other asset, and will generate cash inflows
asset group output products
independently
Long term asset related to the merger of Borit’s goodwill; The
Other automotive parts
management made it clear that this asset group will be used and
Borit divisions; Category of asset Yes
operated independently of other asset, and will generate cash inflows
group output products
independently
Changes in asset group or asset portfolio
Nil
Other explanation: Nil
(4) Specific method of determining the recoverable amount
For asset groups with signs of impairment, the Company estimates the recoverable amount of the asset group based on the higher
of its fair value minus disposal expenses and the present value of expected future net cash flows; For asset groups that show no
signs of impairment, the Company determines the recoverable amount of the asset group based on the present value of the
expected future net cash flows of the asset group.
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
Applicable Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Nil
Reasons for significant discrepancies between the information used in the Company's previous annual impairment tests and the
actual situation of the current year
Nil
(5) Completion of performance commitments and corresponding impairment of goodwill
When goodwill is formed, there is a performance commitment and the reporting period or the previous period is within the
performance commitment period
□Applicable Not applicable
Other explanation: Nil
19. Long-term deferred expense
In RMB
Amortized in the
Item Opening balance Current increase Other Ending balance
reporting period
Decoration
24,714,632.10 808,306.52 4,236,889.73 -360,728.41 20,925,320.48
expense, etc.
Total 24,714,632.10 808,306.52 4,236,889.73 -360,728.41 20,925,320.48
115
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
20. Deferred income tax asset/Deferred income tax liability
(1) Deferred income tax asset that are not offset
In RMB
Ending balance Opening balance
Item Deductible Deferred income tax Deductible temporary Deferred income tax
temporary difference asset difference asset
Unrealized profit from
52,745,557.59 11,667,327.29 58,038,282.16 10,362,240.10
insider transactions
Deductible loss 1,093,630,958.09 164,044,643.71 1,021,893,078.26 153,283,961.74
Bad debt provision 49,349,118.02 7,593,004.94 82,811,787.71 12,593,312.59
Inventory depreciation
244,989,763.16 38,437,035.20 286,016,361.30 45,423,673.61
reserve
Depreciation reserves of
94,291,070.66 16,333,416.58 95,427,114.11 16,503,823.10
fixed asset
Depreciation reserve of
184,615.38 27,692.31 184,615.38 27,692.31
construction in progress
Depreciation reserves of
16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
intangible asset
Deferred income 163,606,425.85 24,728,803.08 182,861,766.95 27,634,668.38
Payable salary, accrued
998,047,402.60 154,177,656.84 787,779,009.37 148,065,821.58
expenses etc.
Depreciation asset,
19,182,284.09 2,788,628.17 21,482,750.97 3,311,127.10
amortization difference
Lease liability 39,546,987.86 8,768,792.56 50,855,198.17 11,460,004.56
Changes in fair value 119,353,204.73 17,902,980.71 17,858,685.16 2,678,802.77
Total 2,891,574,288.03 448,967,016.39 2,621,855,549.54 433,842,162.84
(2) Deferred income tax liability that are not offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liability differences tax liability
The difference between the fair value
and taxation basis of WFTT asset in a 9,490,618.75 1,423,592.79 9,724,500.55 1,458,675.07
merger not under the same control
The difference between the fair value
and taxation basis of IRD asset in a 47,811,607.99 10,518,553.75 54,330,413.17 11,952,690.89
merger not under the same control
The difference between the fair value
and taxation basis of Borit asset in a 17,305,774.53 4,326,443.60 19,310,735.89 4,827,683.93
merger not under the same control
The difference between the fair value
and taxation basis of VH business in a 48,888,737.70 11,733,297.05 53,064,614.54 12,735,507.49
merger not under the same control
Change in fair value of transaction
15,123.29 2,268.49 8,339,996.55 1,259,587.67
financial asset
Accelerated depreciation of fixed asset 815,578,757.85 126,716,232.77 761,694,832.59 116,424,109.44
Right-of-use asset 36,763,000.26 8,294,538.54 48,832,472.85 11,023,076.15
Total 975,853,620.37 163,014,926.99 955,297,566.14 159,681,330.64
(3) Deferred income tax asset and deferred income tax liability listed after off-set
In RMB
116
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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
asset or liability after asset and liability at asset or liability after
asset and liability
off-set period-begin off-set
Deferred income tax
129,026,151.63 319,940,864.76 121,929,207.77 311,912,955.07
asset
Deferred income tax
129,026,151.63 33,988,775.36 121,929,207.77 37,752,122.87
liability
(4) Details of unrecognized deferred income tax asset
In RMB
Item Ending balance Opening balance
Bad debt reserve 1,651,006,900.30 1,649,499,774.15
Inventory depreciation reserve 32,784,249.28 35,117,491.71
Loss from subsidiary 882,607,320.13 845,349,190.11
Depreciation reserves of fixed asset 106,760,754.89 109,904,261.74
Depreciation reserves of intangible asset 456,393.96 468,160.79
Other equity instrument investment 13,600,000.00 13,600,000.00
Wages payable, withholding expense, etc. 4,572,812.40 4,572,812.40
Total 2,691,788,430.96 2,658,511,690.90
(5) Deductible loss of unrecognized deferred income tax asset expired in following years
In RMB
Maturity year Ending amount Opening amount Note
2024 2,473,851.78 3,792,427.29 Operating loss occurs in domestic subsidiaries
2025 7,635,552.89 12,140,693.54 Operating loss occurs in domestic subsidiaries
2026 46,418,486.84 46,418,486.84 Operating loss occurs in domestic subsidiaries
2027 126,802,486.76 126,802,486.76 Operating loss occurs in domestic subsidiaries
2028 104,019,527.69 101,104,099.31 Operating loss occurs in domestic subsidiaries
2029 and the following years 36,918,509.20 Operating loss occurs in domestic subsidiaries
No expiration date 558,338,904.97 555,090,996.37 Operating loss occurs in overseas subsidiaries
Total 882,607,320.13 845,349,190.11
21. Other non-current asset
In RMB
Ending balance Opening balance
Item Depreciatio Depreciatio
Book balance Book value Book balance Book value
n reserve n reserve
Contract acquisition cost 9,677,349.55 9,677,349.55 11,333,809.10 11,333,809.10
Engineering equipment
219,166,657.26 219,166,657.26 232,894,913.95 232,894,913.95
paid in advance
Large deposit certificates
with a maturity of more 850,000,000.00 850,000,000.00 1,112,512,500.00 1,112,512,500.00
than one year
Total 1,078,844,006.81 1,078,844,006.81 1,356,741,223.05 1,356,741,223.05
22. Asset with ownership or use right restricted
In RMB
117
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Ending Opening
Item Restriction Restriction Restriction Restriction
Book balance Book value Book balance Book value
type reason type reason
Notes
Notes pledge
Monetary Cash pledge for Cash
128,231,135.19 128,231,135.19 22,174,151.94 22,174,151.94 for bank
funds deposit bank deposit
acceptance
acceptance
Notes pledge
Bill
97,820,000.00 97,820,000.00 Pledge for bank
receivable
acceptance
IRD IRD
Monetary Cash Cash
7,673,250.00 7,673,250.00 performance 7,902,000.00 7,902,000.00 performance
funds deposit deposit
bond bond
Cash Cash deposit
Monetary Cash Cash
204,620.00 204,620.00 deposit for 210,720.00 210,720.00 for
funds deposit deposit
Mastercard Mastercard
Monetary Cash ETC Cash ETC
4,000.00 4,000.00 4,000.00 4,000.00
funds deposit freezing deposit freezing
Notes
Notes pledge
Receivables pledge for
897,650,012.34 897,650,012.34 Pledge 568,256,134.85 568,256,134.85 Pledge for bank
financing bank
acceptance
acceptance
Account Pledge to
16,201,589.48 14,581,430.53 Pledge
receivable obtain loans
Total 1,033,763,017.53 1,033,763,017.53 712,568,596.27 710,948,437.32
23. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Ending balance Opening balance
Guaranteed loan 3,000,000.00 3,000,000.00
Credit loan 323,943,276.83 818,592,983.28
Factory financing 16,201,589.48
Fufeiting Financing 40,168,948.86
Payable interest 504,673.69 1,094,984.75
Total 367,616,899.38 838,889,557.51
Explanation on classification of short-term borrowing: Nil
(2) Overdue short-term loans without payment
Other explanation: Nil
24. Note payable
In RMB
Item Ending balance Opening balance
Bank acceptance bill 2,156,179,899.55 1,759,062,642.60
Total 2,156,179,899.55 1,759,062,642.60
Other explanation: To issue the above-mentioned bank acceptance bill, the Company paid a deposit of 128,231,135.19 yuan and
pledged accounts receivable financing of 897,650,012.34 yuan.
118
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
25. Account payable
(1) Account payable
In RMB
Category Ending balance Opening balance
Payable operating funds such as labor cost or goods 3,181,056,152.16 3,547,366,822.23
Accounts payable for engineering equipment 170,723,643.64 121,483,601.06
Total 3,351,779,795.80 3,668,850,423.29
(2) Significant accounts payable in advance whose aging is over 1 year or overdue
Other explanation: Nil
26. Other account payable
In RMB
Item Ending balance Opening balance
Dividend Payable 329,472,281.60
Other accounts payable 58,420,021.43 108,893,486.63
Total 387,892,303.03 108,893,486.63
(1) Interest payable
Nil
(2) Dividend payable
In RMB
Item Ending balance Opening balance
Dividend of common stocks 329,472,281.60
Total 329,472,281.60
Other explanations, including important dividends payable that have not been paid for more than one year, disclose the reason for
not paying: Nil
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Deposit and margin 27,287,704.87 13,422,590.66
Social insurance and reserves funds that withholding 1,616,061.28 1,282,686.66
Intercourse funds of unit 25,512,145.98 25,512,145.98
Restricted stock repurchase obligations 63,567,420.00
Other 4,004,109.30 5,108,643.33
Total 58,420,021.43 108,893,486.63
119
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
2) Significant other payable over one year
In RMB
Item Ending balance Reasons for not repaying or carry-over
Ningbo Jiangbei High-tech Industrial Park
19,026,000.00 Intercourse funds from units
Development and Construction Co., Ltd
Total 19,026,000.00
27. Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Within 1 year 485,401.22 2,911,439.65
Total 485,401.22 2,911,439.65
(2) Significant accounts receivable in advance whose aging is over 1 year or overdue
Other explanation: Nil
28. Contract liability
In RMB
Item Ending balance Opening balance
Within one year 58,095,702.93 63,409,595.72
1-2 years 11,079,445.73 3,625,754.55
2-3 years 5,777,241.76 8,677,954.57
Over three years 7,016,428.60 1,973,576.40
Total 81,968,819.02 77,686,881.24
29. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 268,481,110.97 675,967,935.29 770,565,044.78 173,884,001.48
II. Post-employment welfare-
27,791,996.30 102,254,403.02 119,645,985.82 10,400,413.50
defined contribution plans
III. Dismissed welfare 964,506.11 148,539.41 148,539.41 964,506.11
IV. Incentive funds paid within one
18,200,000.00 18,200,000.00
year
V. Other short-term welfare-
Housing subsidies, employee 19,372,739.18 2,059,875.00 17,312,864.18
benefits and welfare funds
Total 334,810,352.56 778,370,877.72 892,419,445.01 220,761,785.27
(2) Short-term compensation
In RMB
120
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonuses, allowances and
254,165,851.19 547,447,021.98 640,291,028.05 161,321,845.12
subsidies
2. Welfare for workers and staff 36,294,156.10 36,294,156.10
3. Social insurance 323,238.00 34,131,899.03 33,864,268.96 590,868.07
Including: Medical insurance 268,640.66 27,598,496.86 27,571,493.25 295,644.27
Work injury insurance 40,482.29 3,653,700.28 3,630,893.41 63,289.16
Maternity insurance 14,115.05 2,879,701.89 2,661,882.30 231,934.64
4. Housing accumulation fund 870,058.00 41,977,917.12 41,914,398.56 933,576.56
5. Labor union expenditure and
9,736,105.14 6,953,803.61 7,542,899.95 9,147,008.80
personnel education expense
6. Other short-term compensation -
3,385,858.64 9,163,137.45 10,658,293.16 1,890,702.93
social security
Total 268,481,110.97 675,967,935.29 770,565,044.78 173,884,001.48
(3) Define contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment premium 8,523,565.50 85,604,117.76 86,669,855.34 7,457,827.92
2. Unemployment insurance 47,208.12 2,200,208.37 2,208,951.73 38,464.76
3. Enterprise annuity 19,221,222.68 14,450,076.89 30,767,178.75 2,904,120.82
Total 27,791,996.30 102,254,403.02 119,645,985.82 10,400,413.50
Other explanation:
Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities by
laws, a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.
Other than the aforesaid monthly contribution, the Company takes no further payment obligation. The relevant expenditure is
included in current profit or loss or cost of relevant asset when occurs. Found more of enterprise annuity in Note XVIII-4 “Annuity
plan”.
30. Tax payable
In RMB
Item Ending balance Opening balance
Value-added tax 28,606,537.00 8,011,069.82
Corporation income tax 22,391,507.19 30,183,553.14
Individual income tax 3,123,688.92 7,904,270.96
City maintaining & construction tax 2,118,124.27 568,820.85
Educational surtax 1,517,937.29 410,526.96
Other (including stamp tax and local funds) 8,870,606.78 9,502,840.76
Total 66,628,401.45 56,581,082.49
31. Non-current liability due within one year
In RMB
Item Ending balance Opening balance
Long-term borrowings due within one year 199,900,000.00 24,700,000.00
Lease payments due within one year 14,110,866.13 13,122,001.66
121
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Interest payable 191,597.22 262,319.44
Total 214,202,463.35 38,084,321.10
32. Other current liability
In RMB
Item Ending balance Opening balance
Rebate payable 294,102,302.79 253,258,241.31
Pending sales tax 5,781,579.48 3,881,667.29
Total 299,883,882.27 257,139,908.60
Changes in short-term bonds payable: Nil
33. Long-term borrowings
(1) Category of long-term borrowings
In RMB
Item Ending balance Opening balance
Credit loan 100,000,000.00 299,800,000.00
Total 100,000,000.00 299,800,000.00
34. Lease liability
In RMB
Item Ending balance Opening balance
Lease payments 56,618,894.49 56,779,079.32
Less: Unconfirmed financing costs 8,114,558.90 5,923,881.15
Less: Lease liability due within one year 14,110,866.13 13,122,001.66
Total 34,393,469.46 37,733,196.51
35. Long-term account payable
In RMB
Item Ending balance Opening balance
Long-term account payable 9,770,000.00 9,770,000.00
Special accounts payable 18,265,082.11 18,265,082.11
Total 28,035,082.11 28,035,082.11
(1) Long-term account payable listed by nature
In RMB
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note ①) Financial support funds (2009) 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2010) 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ③) Financial support funds (2011) 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ④) Financial support funds (2013) 2,740,000.00 2,740,000.00
122
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Total 9,770,000.00 9,770,000.00
Other explanation:
Note ①: To encourage WFJN 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 Oct. 27, 2009 to Oct. 27,
2024. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed. This
support capital has been in use for 15 years in this period, so it has been transferred to other income.
Note ②: To encourage WFJN 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 December 27, 2010 to December
27, 2025. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.
Note ③: To encourage WFJN 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 Dec. 28, 2011 to Dec. 28, 2026.
Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.
Note ④: To encourage WFJN 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 December 18, 2013 to December
18, 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
Opening Current Current Cause of
Item Ending balance
balance increased decreased formation
Removal compensation of
18,265,082.11 18,265,082.11
subsidiary WFJN
Total 18,265,082.11 18,265,082.11
Other explanation
In line with regulation of the house acquisition decision of People’s government of Xuanwu District, Nanjing City, Ning Xuan Fu
Zheng Zi (2012) No.001, part of the lands and property of WFJN needs expropriation in order to carry out the comprehensively
improvement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed
between WFJN and House Expropriation Management Office of Xuanwu District, Nanjing City, 19.7067 million yuan in total
were compensated, including operation loss from lessee 1.4416 million yuan in total. The above compensation was received in last
period and is making up for the loss from lessee, and the above lands and property have not been collected up to June 30, 2024.
36. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
I. Post-employment benefits - Defined benefit plan net liability 20,142,460.17 21,238,891.62
II. Dismiss welfare 12,705,455.44 12,926,873.35
III. Other long-term welfare 95,678,717.83 95,678,717.83
Total 128,526,633.44 129,844,482.80
(2) Changes in defined benefit plan
Present value of defined benefit plan
123
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
In RMB
Item Current Period Last Period
I. Opening balance 21,238,891.62 20,380,744.73
II. Cost of defined benefit plan booked into current profit and loss 325,440.87 385,952.19
1.Current service cost 325,440.87 385,952.19
III. Cost of defined benefit plan booked into other comprehensive income -451,530.88 704,649.43
1.Actuarial gain (loss are represented by “-”) -451,530.88 704,649.43
IV. Other changes -970,341.44 518,080.76
1.Welfare paid -438,808.45 -99,925.69
2.Translation difference of foreign currency statements -531,532.99 618,006.45
V. Ending balance 20,142,460.17 21,989,427.11
Other explanation:
According to relevant regulations in Italy, the Trattamento di Fine Rapporto (TFR) system is established. VHIO shall calculate and
offer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or are
dismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. The
above-mentioned benefit plan poses actuarial risks to VHIO, mainly including interest rate risk and inflation risk. The decrease in
interest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition, the present value of
benefit plan obligations is related to the future payment standards of the plan, which are determined based on inflation rates.
Therefore, an increase in inflation rate will also lead to an increase in planned liability.
37. Anticipated liability
In RMB
Item Ending balance Opening balance Formation cause
Pending dispute and litigation 59,459.66
Product quality assurance 19,456,691.27 26,946,035.59
Withholding sales discounts 7,290,089.00 10,709,925.00
Investment loss in joint ventures
Environmental protection commitment 301,008.27
Total 26,746,780.27 38,016,428.52
Other explanations, including important assumptions and estimation explanations related to significant estimated liability: Nil
38. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grant 188,773,622.29 15,934,738.51 36,872,867.80 167,835,493.00
Total 188,773,622.29 15,934,738.51 36,872,867.80 167,835,493.00 --
Item with government grants involved:
In RMB
Amount reckoned Translation of
New grants in Asset
Opening into other income foreign Ending
Items of liability the reporting related/Income
balance in the reporting currency balance
period related
period statements
Appropriation for research and
development ability of 4,755,045.84 390,825.70 4,364,220.14 Asset related
distributive high-pressure
124
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
common rail system for diesel
engine use and production line
technological transformation
project
Fund of industry upgrade (2013) 7,252,478.13 7,252,478.13 0.00 Income related
R&D and industrialization of
the high-pressure variable pump
1,687,274.46 499,317.53 1,187,956.93 Asset related
of the common rail system of
diesel engine for automobile
Research institute of motor
vehicle exhaust after-treatment 22,026.39 22,026.39 - Asset related
technology
Fund of industry upgrade (2014) 36,831,000.00 1,287,794.72 35,543,205.28 Income related
New-built asset compensation
after the removal of parent 44,826,346.03 8,771,401.60 36,054,944.43 Asset related
Company
Fund of industry upgrade (2016) 40,000,000.00 -- -- 40,000,000.00 Income related
Guiding capital for the technical
reform from State Hi-Tech 2,572,688.97 609,075.97 1,963,613.00 Asset related
Technical Commission
Implementation of the variable
cross-section turbocharger for 2,705,753.03 540,821.30 2,164,931.73 Asset related
diesel engine
Demonstration project for
251,849.60 89,925.24 161,924.36 Asset related
intelligent manufacturing
The 2nd batch of provincial
special funds for industry
648,856.50 211,422.34 437,434.16 Asset related
transformation of industrial and
information in 2019
Municipal technological reform
2,911,199.53 307,827.42 2,603,372.11 Asset related
fund allocation in 2020
Strategic cooperation agreement
funding for key enterprise of
2,541,462.10 416,578.38 2,124,883.72 Asset related
smart manufacturing in high-
tech zone
The 3rd batch of provincial
special funds for industry
3,945,523.81 513,223.58 3,432,300.23 Asset related
transformation of industrial and
information in 2021
2023 Wuxi Industrial
Transformation and Upgrading 9,001,247.04 443,246.59 8,558,000.45 Asset related
Fund
Technical renovation and
capacity optimization project for
1,676,119.38 101,940.53 1,574,178.85 Asset related
annual production of 150,000
sets of turbochargers
Asset/Income
Other 27,144,751.48 16,097,455.21 15,414,962.38 -162,716.70 27,664,527.61
related
Total 188,773,622.29 16,097,455.21 36,872,867.80 -162,716.70 167,835,493.00
Other explanation:
(1) 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 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 was asset-related government grant and 390,825.70 yuan was written off based on the
depreciation schedule of the related asset during the reporting period.
(2) 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 and amount of 7,252,478.13 yuan was written off in the year.
(3) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the
Company received 8.05 million yuan appropriated for the project in 2013 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. The Company received 8.05 million yuan, 3 million
125
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
yuan and 0.45 million yuan respectively in 2013, 2014 and 2015; Such funds were asset-related government grant, and amount of
499,317.53 yuan was written off in the year according to depreciation progress of related asset.
(4) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary WFLD applied for equipment
purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for the
vehicle exhaust after-treatment technology research institute project. This declaration was approved by Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau in 2012, and the Company received appropriation of 2.4 million
yuan in 2012, and received appropriation of 1.6 million yuan in 2013. Such funds were asset-related government grants and shall
be written off according to the depreciation process, and amount of 22,026.39 yuan was written off in the year.
(5) 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 and amount of
1,287,794.72 yuan was written off in the year.
(6) New-built asset compensation after the removal of parent Company: policy relocation compensation received by the Company,
and will be written off according to the depreciation of new-built asset, amount of 8,771,401.60 yuan was written off in the year.
(7) 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.
(8) 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 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 asset concerned, and shall be written off
according to the depreciation process, amount of 609,075.97 yuan was written off in the year.
(9) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZF[2016]
No.623 and “Strong Industrial Base Project Contract for year of 2017”, subsidiary WFTT received a specific subsidy of 16.97
million yuan in 2016 and of 760,000 yuan 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; It belongs to
government grant with asset concerned, and shall be written off according to the depreciation process. Amount of 540,821.30
yuan was written off in the year.
(10) 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 WFLD in 2017 to be utilized for transformation and upgrade of
WFLD’s intelligent manufacturing facilities. This subsidy belongs to government grant related to asset which shall be written off
based on the depreciation progress of the asset. Amount of 89,925.24 yuan was written off in the year.
(11) The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019: according to
XCGM [2019] No. 121, the Company received a special fund of 5 million yuan in 2020. This subsidy was related to the “Weifu
High-Technology New Factory Internet Construction” projects, and belonged to government grants related to asset. and shall be
written off according to the depreciation process, amount of 211,422.34 yuan was written off in the year.
(12) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16, the Company received 4.77
million yuan of municipal technological transformation fund project allocation in 2020, which was related to key technological
transformation projects and belonged to government grants related to asset. and shall be written off according to the depreciation
process. Amount of 307,827.42 yuan was written off in the year.
(13) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF
[2020] No. 61, the Company received a related grant of 4.06 million yuan in 2020 and 0.7 million yuan received in the year, this
grant was related to the intelligent transformation project and belonged to the government grants related to asset. and shall be
written off according to the depreciation process, amount of 416,578.38 yuan was written off in the year.
(14) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to the
SCGM [2021] No.92, the government grant 13.5 million yuan received in 2021 was for the research, development and
126
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
industrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells, which was an
asset related government grants. According to the depreciation progress of related asset, amount of 513,223.58 yuan was written
off in the year.
(15) 2023 Wuxi Industrial Transformation and Upgrading Fund: The government subsidy received in this period of 10 million
yuan was used for the Company's new motor shaft, water jacket, injector seat, and gasoline rail expansion project, which is a
government subsidy related to asset. According to the depreciation progress of related asset, amount of 443,246.59 yuan was
written off in the year.
(16) Funding for technical renovation and capacity optimization project for annual production of 150,000 sets of turbochargers:
According to BQJX[2021] No.31 and BQJX[2022]No.29 documents, the subsidiary WFTL received a government subsidy of 2
million yuan in 2023 for the annual production of 150,000 sets of turbochargers technology renovation and capacity optimization
project. This subsidy belongs to asset related subsidies. According to the depreciation progress of related asset, amount of
101,940.53 yuan was written off in the year.
39. Share
In RMB
Change during the year (+/-)
Shares
Opening balance New shares Bonus transferred Ending balance
Other Subtotal
issued share from capital
reserve
Total shares 1,002,162,793.00 -5,176,500.00 -5,176,500.00 996,986,293.00
Other explanation: The decrease in share capital is due to the cancellation of 5,176,500 shares that were not unlocked under the
Company's restricted stock incentive plan.
40. Capital reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3,245,698,337.98 58,390,920.00 3,187,307,417.98
capital premium)
Other capital reserve 62,471,802.98 597,389.29 9,766.98 63,059,425.29
Total 3,308,170,140.96 597,389.29 58,400,686.98 3,250,366,843.27
Other explanation, including changes in the reporting period and reasons for changes;
(1) The decrease of 58,390,920.00 yuan in capital premium (share premium) for the current period is due to the cancellation of
restricted stocks.
(2) The increase of 597,389.29 yuan in other capital reserves for the current period is due to changes in other equity of joint
ventures, which the Company enjoys in proportion to its shareholding.
(3) The decrease of 9,766.98 yuan in other capital reserves for the current period is due to the handling fee of 9,766.98 yuan paid
for repurchasing shares.
41. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Buyback shares 469,722,092.24 469,722,092.24
Repurchase obligation of restricted stock
63,567,420.00 63,567,420.00
incentive plan
127
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Total 533,289,512.24 63,567,420.00 469,722,092.24
Other explanations, including changes in the current period and explanations of the reasons for the changes:
Repurchase obligation of restricted stock incentive plan has RMB 63,567,420.00 decreased in the reporting period, which was
inventory shares that were converted from 5,176,500.00 unlocked shares under the Company's restricted stock incentive plan.
42. Other comprehensive income
In RMB
Current Period
Less: written Less: written
in other in other
comprehensiv comprehensiv
Belong
e income in e income in Less:
Opening Belong to to Ending
Item Account before previous previous income
balance parent minority balance
income tax in period and period and tax
Company after sharehol
the year carried carried expens
tax ders after
forward to forward to e
tax
gain and loss retained
in current earnings in
period current period
I. Other
comprehensive
-
income that cannot -1,573,054.85 451,530.88 451,530.88
1,121,523.97
be reclassified to
profit or loss
Including:Remeasur
-
e changes in defined -1,589,063.65 451,530.88 451,530.88
1,137,532.77
benefit plans
Other
comprehensive
income that cannot
16,008.80 16,008.80
be transferred to
profit or loss under
the equity method
II. Other
comprehensive
- -
income items which 55,729,970.8 33,408,783.1
22,321,187.6 22,321,187.6
will be reclassified 2 8
4 4
subsequently to
profit or loss
Conversion
- -
difference of foreign 55,729,970.8 33,408,783.1
22,321,187.6 22,321,187.6
currency financial 2 8
4 4
statement
Total other - -
54,156,915.9 32,287,259.2
comprehensive 21,869,656.7 21,869,656.7
7 1
income 6 6
Other explanations, including the adjustment of the effective portion of cash flow hedging gain and loss to the initial recognition
amount of the hedged item: Nil
43. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Work safety costs 3,641,439.97 14,355,523.67 12,105,697.67 5,891,265.97
Total 3,641,439.97 14,355,523.67 12,105,697.67 5,891,265.97
Other explanation, including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (work safety cost): According to the CZ [2022] No.136-Administrative
Measures on the Withdrawing and Use of Enterprise Safety Production Expenses jointly issued by the Ministry of Finance and the
State Administration of Work Safety, in the current period, the Company adopted excess retreat method for monthly withdrawal
by taking the actual operating income of the previous period as the withdrawing basis.
128
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) The above work safety costs includes the work safety costs accrued by the Company in line with regulations and the parts
enjoy by shareholders of the Company.
44. Surplus reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus reserves 510,100,496.00 510,100,496.00
Total 510,100,496.00 510,100,496.00
Other explanation, including changes and reasons for changes:
Pursuit to the Company Law and Article of Association, the Company withdraws statutory surplus reserve on 10% of the net profit.
No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes over 50% of the registered capital.
45. Retained profit
In RMB
Item Current Period Last Period
Retained profits at the end of last year before adjustment 15,054,950,398.12 13,320,021,325.90
Retained profits at the beginning of the year after adjustment 15,054,950,398.12 13,320,021,325.90
Add: The net profits belong to owners of patent Company of this period 954,341,269.90 1,837,291,259.68
Less: Cash dividends payable 971,986,293.00 97,757,979.30
Withdraw employee rewards and welfare funds 4,604,208.16
Retained profit at period-end 15,037,305,375.02 15,054,950,398.12
Details about adjusting the retained profits at the beginning of the reporting 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 reporting period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the reporting period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the reporting period amounting to 0 yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the reporting period amounting
to 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the reporting period amounting to 0 yuan
46. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main operating 5,602,366,875.45 4,590,170,191.12 6,052,163,689.76 5,137,115,309.66
Other business 91,866,677.27 30,382,562.42 77,485,357.64 26,756,421.60
Total 5,694,233,552.72 4,620,552,753.54 6,129,649,047.40 5,163,871,731.26
Breakdown information of operating income and operating cost:
In RMB
Automotive fuel
Automotive post
injection system and Air management system Other automotive
processing system Total
Type of fuel cell component segment components segment
segment
contract segment
Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating
income cost income cost income cost income cost income cost
Classified
by the
time of
129
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
transfer of
goods
Including:
Primary
business
Including:
confirmed
2,389,384 1,832,154 1,788,451 1,532,494 501,982,9 389,330,7 922,548,4 836,190,0 5,602,366,8 4,590,170,19
at some
,035.29 ,586.09 ,511.09 ,804.84 16.15 15.88 12.92 84.31 75.45 1.12
point of
time
confirmed
at some
period of
time
Other
business
Including:
confirmed
49,084,20 9,966,363 13,937,44 3,467,657 4,528,867 983,918.7 11,067,92 8,577,658 78,618,444. 22,995,598.9
at some
7.14 .91 7.24 .53 .21 9 3.31 .76 90 9
point of
time
confirmed
at some
period of
time
Rental 11,625,26 6,538,781 1,003,317 641,271.4 619,645.8 206,910.8 13,248,232.
7,386,963.43
income 9.52 .12 .02 5 3 6 37
2,450,093 1,848,659 1,803,392 1,536,603 507,131,4 390,521,5 933,616,3 844,767,7 5,694,233,5 4,620,552,75
Total
,511.95 ,731.12 ,275.35 ,733.82 29.19 45.53 36.23 43.07 52.72 3.54
47. Operating tax and extra
In RMB
Item Current Period Last Period
City maintaining & construction tax 5,794,135.28 8,517,861.49
Educational surtax 4,148,769.09 6,087,805.08
Property tax 10,803,395.41 11,115,997.34
Land use tax 2,892,897.92 2,013,933.93
Vehicle use tax 3,536.00 19,170.06
Stamp duty 4,000,044.56 4,119,912.74
Other tax 617,416.53 365,742.35
Total 28,260,194.79 32,240,422.99
48. Administration expenses
In RMB
Item Current Period Last Period
Salary and wage related expense 184,784,922.02 157,699,092.98
Depreciation charger and long-term asset amortization 59,381,681.77 53,460,774.32
Consumption of office materials and business travel charge 10,158,382.36 9,690,794.26
Share-based payment 3,351,570.96
Other 76,614,673.16 74,993,497.07
Total 330,939,659.31 299,195,729.59
49. Sales expenses
In RMB
Item Current Period Last Period
130
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Salary and wage related expense 41,075,635.21 33,589,826.19
Consumption of office materials and business travel charge 5,532,210.03 5,356,063.20
Warehouse charge 10,002,106.13 3,818,351.46
Three guarantees and quality cost 35,807,470.52 38,356,321.13
Business entertainment fee 5,635,855.05 5,701,496.43
Other 15,174,719.90 16,209,422.99
Total 113,227,996.84 103,031,481.40
50. R&D expenditure
In RMB
Item Current Period Last Period
Technology development expenditure 302,233,285.34 351,887,038.12
Total 302,233,285.34 351,887,038.12
51. Financial expenses
In RMB
Item Current Period Last Period
Interest expenses 13,772,229.94 65,616,425.64
Less: interest income(be filled in with the sign of “-”) 18,112,595.69 15,706,416.56
Gain/loss from exchange 10,342,985.06 -14,651,449.58
Handling charges 2,209,219.32 3,203,622.95
Total 8,211,838.63 38,462,182.45
52. Other income
In RMB
Sources of income generated Current Period Last Period
Government grants with routine operation activity concerned 40,309,960.72 35,592,303.00
VAT instant refund 83,247,274.78
Tax credit for overseas subsidiaries 6,583,950.25 4,565,105.73
Refund of individual income tax handling fee 744,863.36 822,184.78
Total 130,886,049.11 40,979,593.51
Details of government subsidies included in other income:
Related to
Subsidy projects Current period Last period
asset/income
Annual production of 300,000 four cylinder engine supercharger
6,771.94 28,439.32 Related to asset
technology renovation project
Depreciation/amortization compensation for newly built asset after the
8,771,401.60 8,961,973.65 Related to asset
relocation of the parent Company
Technical transformation of catalytic reduction system for commercial
60,222.22 116,777.78 Related to asset
vehicles with an annual output of 180,000 units
Research and industrialization project of high-pressure variable pump for
499,317.53 506,584.28 Related to asset
common rail system of automotive diesel engine
Intelligent manufacturing demonstration project funds 89,925.24 90,019.10 Related to asset
Research Institute of Motor Vehicle Exhaust Aftertreatment Technology 22,026.39 44,915.68 Related to asset
Implementation plan for variable cross-section turbochargers in diesel
540,821.30 774,340.08 Related to asset
engines
Subsidy for the annual production of 200,000 gasoline engine
137,881.94 138,201.84 Related to asset
turbochargers technology renovation project
131
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Related to
Subsidy projects Current period Last period
asset/income
Annual production of 150,000 gasoline engine turbochargers 103,967.92 124,278.78 Related to asset
Technical Transformation Guidance Fund of the National High tech
609,075.97 607,212.50 Related to asset
Management Committee
Industrial upgrading fund 8,540,272.85 16,399,408.54 Related to income
R&D capability and production line technology transformation project of
390,825.70 390,825.70 Related to asset
distributed high-pressure common rail system for diesel engines
Funding for municipal level technological renovation projects in 2020 307,827.42 307,948.54 Related to asset
The second batch of provincial special funds for industrial and
211,422.34 611,563.78 Related to asset
information industry transformation in 2019
Subsidies for stabilizing and expanding positions 13,500.00 134,024.51 Related to income
Technical Renovation and Capacity Optimization Project for Annual
101,940.53 Related to asset
Production of 150,000 Turbochargers
The third batch of provincial special funds for industrial and information
513,223.58 Related to asset
industry transformation and upgrading in 2021
2023 Wuxi Industrial Transformation and Upgrading Fund (Second
443,246.59 Related to asset
Batch) Support Project Intelligent Construction Project
3R 697,092.82 642,615.43 Related to income
Anione 50,521.95 19,228.15 Related to income
Provincial specialized, refined, unique and new small and medium-sized
150,000.00 Related to income
enterprises
Ningbo (Jiangbei) High tech Industrial Park 840,000.00 Related to income
Industrial upgrading subsidy 11,433,123.80 Related to income
Training subsidy 95,550.00 Related to income
Subsidies for stabilizing and expanding positions 135,524.51 Related to income
The second batch of technological transformation in Jiangbei District in
2,000,000.00 Related to asset
2023
Talent policy subsidies 557,028.00 Related to income
Specialized and innovative small giant enterprise subsidy 200,000.00 Related to income
Related to
Other 5,775,551.09 2,705,842.83
asset/income
Total 40,309,960.72 35,592,303.00
53. Income from change of fair value
In RMB
Sources Current Period Last Period
Trading financial asset -105,836,110.61 7,196,973.71
Other non current financial asset -120,000.00 -25,266,527.00
Total -105,956,110.61 -18,069,553.29
54. Investment income
In RMB
Item Current Period Last Period
Income of long-term equity investment calculated based on equity method 734,287,171.95 742,783,514.37
Investment income from holding of trading financial asset 37,864,494.00 69,978,714.96
Income from debt restructuring -284,132.56
Gain/loss recognized when financing of accounts receivable is terminated for
-2,198,912.35 -1,355,595.84
discounting
Total 769,668,621.04 811,406,633.49
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
55. Credit impairment loss
In RMB
Item Current Period Last Period
Bad debt loss of accounts receivable 4,356,331.08 146,544.21
Bad debt loss of other accounts receivable -865,695.62 -993,269.97
Total 3,490,635.46 -846,725.76
56. Asset impairment loss
In RMB
Item Current Period Last Period
1. Loss of inventory falling price and loss of
-66,803,279.10 -89,988,541.10
contract performance cost impairment
2.Impairment loss of fixed asset -274,995.90
Total -66,803,279.10 -90,263,537.00
57. Income from asset disposal
In RMB
Sources Current Period Last Period
Income from disposal of non-current asset 7,727,515.15 126,476,687.75
Loss from disposal of non-current asset -1,868,313.66 -945,782.71
Total 5,859,201.49 125,530,905.04
58. Non-operating income
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gain/loss
Payables that do not require payment 429,031.67 2,439,961.77 429,031.67
Liquidated damages and compensation income 71,807.84 164,991.15 71,807.84
Other 199,579.16 102,743.08 199,579.16
Total 700,418.67 2,707,696.00 700,418.67
59. Non-operating expense
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gain/loss
Donation 213,500.00 20,000.00 213,500.00
Total of non-current asset disposal loss 385,558.12 661,923.94 385,558.12
Including: loss on scrapping of fixed asset 385,558.12 661,923.94 385,558.12
Loss on scrapping of intangible asset
Other 2,762,757.23 76,457.75 2,762,757.23
Total 3,361,815.35 758,381.69 3,361,815.35
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WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
60. Income tax expense
(1) Income tax expense
In RMB
Item Current Period Last Period
Payable tax in current period 29,419,571.42 29,859,646.45
Adjust previous income tax 5,387,844.06 -11,522.40
Increase/decrease of deferred income tax asset -15,433,648.34 -3,637,244.56
Increase/decrease of deferred income tax liability 4,329,953.42 3,121,400.25
Total 23,703,720.56 29,332,279.74
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 1,025,291,544.98
Income tax measured by statutory/applicable tax rate 153,793,731.75
Impact by different tax rate applied by subsidies 10,024,552.39
Impact from adjusting the previous income tax 5,387,844.06
Impact by non-taxable revenue -110,434,226.77
Impact on cost, expenses and loss that unable to deducted 91,822.36
Impact by the deductible loss of the un-recognized previous deferred income tax 8,282,777.16
The deductible temporary differences or deductible loss of the un-recognized deferred
-37,569,911.95
income tax asset in the Period
Impact on additional deduction -5,557,760.85
Other -315,107.59
Income tax expense 23,703,720.56
61. Other comprehensive income
See Note VII-43 “Other comprehensive income”.
62. Items of cash flow statement
(1) Cash related to operating activities
Cash received in relation to operation activities
In RMB
Item Current Period Last Period
Interest income 18,112,595.69 15,706,416.56
Government grants 19,534,548.13 16,848,073.14
Capital inflow of WFTR “platform trade” business portfolio 299,235,761.25
Other 16,773,005.42 18,644,560.72
Total 54,420,149.24 350,434,811.67
Explanation on other cash received in relation to operation activities:
Nil
Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
134
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Cash cost 320,543,557.21 301,149,590.30
Capital outflow of WFTR “platform trade” business portfolio 100,000,000.00
Other 12,024,400.43 8,281,394.08
Total 332,567,957.64 409,430,984.38
Explanation to other cash paid in relation to operation activities: Nil
(2) Cash in relation to investment activities
Nil
(3) Cash in related to financing activities
Other cash paid in related to financing activities
In RMB
Item Current Period Last Period
Repayment of non-financial enterprise loans
Borrowing return by WFLD
Lease payments 9,325,420.84 3,411,636.27
Repurchase of A shares 71,917,549.61
Shares repurchase for restricted stock incentive plan unlocked 63,567,420.00 69,247,530.00
Other 10,353.00
Total 72,903,193.84 144,576,715.88
Explanation on other cash paid in relation to financing activities: Nil
Changes in liability arising from financing activities
Applicable □Not applicable
In RMB
Current increase Current decrease
Beginning
Item Changes in Changes in Changes in Changes in Ending balance
balance
cash non-cash cash non-cash
Short-term
838,889,557.51 211,155,360.59 46,291,542.90 712,517,972.14 16,201,589.48 367,616,899.38
borrowing
Long-term
299,800,000.00 199,800,000.00 100,000,000.00
borrowing
Non-current
liability
38,084,321.10 215,415,677.91 39,297,535.66 214,202,463.35
maturing within
one year
Lease liability 37,733,196.51 6,192,113.56 9,531,840.61 34,393,469.46
1,214,507,075.
Total 211,155,360.59 267,899,334.37 751,815,507.80 225,533,430.09 716,212,832.19
12
(4) Explanation on cash flow listed at net amount
Nil
(5) Significant activities and financial impacts that do not involve current cash inflows and outflows but
affect the financial condition of the enterprise or may affect the cash flow of the enterprise in the future
Nil
135
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
63. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current Period Last Period
1. Net profit adjusted to cash flow of operation activities:
Net profit 1,001,587,824.42 982,314,812.15
Add: Asset impairment provision 63,312,643.64 91,110,262.76
Depreciation of fixed asset, consumption of oil asset and depreciation of
282,824,515.77 259,623,099.39
productive biology asset
Depreciation of right-of-use asset 8,189,471.05 6,380,517.86
Amortization of intangible asset 36,545,321.55 32,426,362.30
Amortization of long-term deferred expenses 4,236,889.73 2,091,207.90
Loss from disposal of fixed asset, intangible asset and other long-term asset
-5,859,201.49 -125,530,905.04
(gain shall be filled in with the sign of “-”)
Loss on scrapping of fixed asset(gain shall be filled in with the sign of “-”) 385,321.29 661,923.94
Gain/loss of fair value changes(gain shall be filled in with the sign of “-”) 105,956,110.61 18,069,553.29
Financial expenses(gain shall be filled in with the sign of “-”) 10,831,104.48 -11,447,977.73
Investment loss (gain shall be filled in with the sign of “-”) -771,867,533.39 -812,762,229.33
Decrease of deferred income tax asset(increase shall be filled in with the sign
-15,433,648.34 1,793,420.95
of “-”)
Increase of deferred income tax liability(decrease shall be filled in with the
4,329,953.42 3,135,839.77
sign of “-”)
Decrease of inventory(increase shall be filled in with the sign of “-”) 110,740,083.45 372,883,000.74
Decrease of operating receivable accounts (increase shall be filled in with the
-46,728,537.49 370,183,379.30
sign of “-”)
Increase of operating payable accounts(decrease shall be filled in with the sign
95,327,334.27 -108,140,333.37
of “-”)
Other 3,514,664.40 7,169,302.54
Net cash flows arising from operating activities 887,892,317.37 1,089,961,237.42
2. Major investments and financing activities that do not involve cash receipts
and payments
Debt-to-capital
Convertible bonds maturing within one year
Financing to lease fixed asset
3. Net change of cash and cash equivalents:
Balance of cash at reporting period end 1,874,301,039.39 2,387,464,673.97
Less: Balance of cash equivalent at year-begin 2,061,986,694.41 2,277,117,604.82
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents -187,685,655.02 110,347,069.15
(2) Net cash payment for the acquisition of subsidiaries in the reporting period
Other explanation: Nil
(3) Net cash received from the disposal of subsidiaries
Other explanation: Nil
136
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 1,874,301,039.39 2,061,986,694.41
Including: Cash on hand 3,066.79 6,343.24
Bank deposit available for payment at any time 1,874,297,972.60 2,061,980,351.17
II. Balance of cash and cash equivalents at the period-end 1,874,301,039.39 2,061,986,694.41
Other explanation: The difference between the bank deposits that can be used for payment at any time and the bank deposits in
Note –VII.1 "Monetary Funds" refers to the fixed deposits deposited by the Company into the bank.
(5) Items whose application scope is restricted but are still listed as cash and cash equivalents
Nil
(6) Monetary items not belonging to cash and cash equivalents
In RMB
Reasons for not belonging to cash
Item Current Period Last Period
and cash equivalents
Not meeting the definition of cash
Bank deposit--Bank fixed deposits 709,651,656.51 100,000,000.00
and cash equivalents
Other monetary fund - USD margin for Not meeting the definition of cash
18,840,000.00
foreign exchange contracts and cash equivalents
Other monetary fund -Notes pledge for bank Not meeting the definition of cash
128,231,135.19 12,066,812.90
acceptance and cash equivalents
Not meeting the definition of cash
Other monetary fund -IRD performance bond 7,673,250.00 7,935,750.00
and cash equivalents
Other monetary fund - Cash deposit for Not meeting the definition of cash
204,620.00 211,620.00
Mastercard and cash equivalents
Not meeting the definition of cash
Other monetary fund - ETC freezing 4,000.00 5,000.00
and cash equivalents
Other monetary fund -Foreign exchange Not meeting the definition of cash
4,585,442.40
funds in transit and cash equivalents
Not meeting the definition of cash
Other monetary fund -In-transit dividends 1,309,380.00 1,262,280.00
and cash equivalents
Total 851,659,484.10 140,321,462.90
Other explanation: Nil
(7) Notes to other significant activities
Nil
64. 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
65. Item of foreign currency
(1) Item of foreign currency
In RMB
137
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Ending balance of foreign Rate of conversion Ending RMB balance
Item
currency converted
Monetary funds
Including: USD 16,285,629.19 7.1268 116,064,427.21
EUR 33,935,744.06 7.6617 260,005,312.82
HKD 8,322,447.55 0.91268 7,595,731.43
JPY 23,112,182.00 0.044738 1,033,992.80
DKK 10,416,593.11 1.0231 10,657,216.41
Account receivable
Including: USD 3,465,962.85 7.1268 24,701,224.04
EUR 28,553,346.72 7.6617 218,767,176.56
HKD
JPY 8,393,745.00 0.044738 375,519.36
DKK 12,119,424.99 1.0231 12,399,383.71
Long-term borrowings
Including: USD
EUR
HKD
Other account receivables
Including: USD 130.00 7.1268 926.48
EUR 209,060.06 7.6617 1,601,755.46
DKK 2,529,970.01 1.0231 2,588,412.32
Account payable
Including: USD 1,268,290.44 7.1268 9,038,852.31
EUR 27,088,185.10 7.6617 207,541,547.78
JPY 10,088,612.00 0.044738 451,344.32
CHF 87,388.49 7.9471 694,485.07
GBP 2,450.00 9.043 22,155.35
DKK 24,034,162.32 1.0231 24,589,351.47
Other account payable
Including: USD 1,087.90 7.1268 7,753.25
EUR
DKK
Non-current liability due within one year
Including: USD 156,471.72 7.1268 1,115,142.65
EUR 546,267.95 7.6617 4,185,341.15
DKK 1,630,830.84 1.0231 1,668,503.03
Leasing liability
Including: USD 150,930.11 7.1268 1,075,648.71
EUR 870,260.74 7.6617 6,667,676.71
DKK 18,619,783.47 1.0231 19,049,900.47
(2) Explanation on foreign operational entities, 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
Subsidiary of the Company, IRD, was established in Denmark in 1996. The 66% equity of IRD were acquired by the Company in
cash in April 2019. In October 2020, the Company acquired the remaining 34.00% equity of IRD in cash, thus the Company holds
138
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
100% equity of IRD. IRD is denominated in Danish krone, and IRD is mainly engaged in R&D, production and sales of fuel cell
components.
Subsidiary Borit was established in Belgium in 2010. The Company acquired 100% equity of Borit in cash in November 2020.
Borit is denominated in Euro and engaged in R&D, production and sales of fuel cell components.
Subsidiary VHIO was established in Italy in 2000. The Company acquired 100.00% equity of VHIO in cash in October 2022. The
Company is denominated in Euro and engaged in R&D, production, and sales of vacuum and hydraulic pumps.
66. Lease
(1) The Company as the lessee
Applicable Not applicable
Variable lease payments not included in the measurement of lease liability
□Applicable Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value asset
Applicable □Not applicable
Simplified handling of short-term leasing or low value asset leasing expenses: 2,339,542.40 yuan; The total cash outflow related to
leasing is 11,848,817.62 yuan.
Please refer to Note VII-16, "Right of Use Asset," for relevant information on right of use asset.
Situations involving lease sales-back: Nil
(2) The Company as the lessor
Operating lease with the Company as the lessor
Applicable □Not applicable
In RMB
Including: income related to variable lease payments not included in
Item Rental income
rental income
Rental of houses and equipment 13,248,232.37
Total 13,248,232.37
Financing lease with the Company as the lessor
□Applicable Not applicable
Annual un-discounted rental income for the next five years
□Applicable Not applicable
Adjustment table for un-discounted rental income and net lease investments: Nil
(3) Recognize gain/loss arising from financing lease sale with the Company as producer or dealer
□Applicable Not applicable
67. Data resource
Nil
68. Others
Nil
139
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
VIII. R&D expenditure
In RMB
Item Current Period Last Period
Employee compensation 136,777,851.37 134,011,455.17
Direct investment 78,083,296.26 103,953,647.89
Depreciation and amortization 52,746,394.50 61,343,218.60
Other 34,625,743.21 52,578,716.46
Total 302,233,285.34 351,887,038.12
Including: expensed R&D expenditure 302,233,285.34 351,887,038.12
1. R&D items that meet capitalization conditions
Nil
2. Important outsourced projects under research
Nil
IX. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the reporting period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Book value of asset and liability of the merged party on the merger date
Nil
(4) Gain or loss arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights
in the reporting period or not
□Yes No
(5) Notes relating to the merge date or the end of the reporting period in which the merger consideration
or the fair value of the merged party’s identifiable asset and liability cannot be reasonable determined
Nil
140
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(6) Other explanation
Nil
2. Enterprise combination under the same control
(1) Enterprise combination under the same control that occurred in the current period
Other explanation: Nil
(2) Consolidation cost
Nil
(3) Book value of asset and liability of the merged party on the merger date
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
reporting period
□Yes No
5. Changes in the scope of consolidation due to other reasons
Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary, subsidiary
liquidation, etc.) and related information:
Investment establishment: Weifu Zhigan (Wuxi) Technology Co., Ltd., Weifu Lianhua Automotive Parts (Fuzhou) Co., Ltd
6. Others
Nil
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
In ten thousand yuan
Main Share-holding ratio
Registered Registered
Subsidiary operation Business nature Acquired way
capital place Directly Indirectly
place
141
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Spare parts of internal- Enterprise combines under the
WFJN 34,628.68 Nanjing Nanjing 80.00%
combustion engine same control
Automobile exhaust purifier, Enterprise combines under the
WFLD 50,259.63 Wuxi Wuxi 94.81%
muffler same control
Spare parts of internal-
WFMA 16,500 Wuxi Wuxi 100.00% Investment
combustion engine
Spare parts of internal-
WFCA 21,000 Wuxi Wuxi 100.00% Investment
combustion engine
Enterprise combines under the
WFTR 3,000 Wuxi Wuxi Trading 100.00%
same control
Spare parts of internal-
WFSC 7,600 Wuxi Wuxi 66.00% Investment
combustion engine
Spare parts of internal- Enterprise combines not under
WFTT 11,136 Ningbo Ningbo 98.83% 1.17%
combustion engine the same control
Spare parts of internal- Enterprise combines not under
WFAM USD3,310 Wuxi Wuxi 51.00%
combustion engine the same control
WFLD Automobile exhaust purifier,
1,000 Wuhan Wuhan 60.00% Investment
(Wuhan) muffler
WFLD Automobile exhaust purifier,
5,000 Chongqing Chongqing 100.00% Investment
(Chongqing) muffler
WFLD Automobile exhaust purifier,
5,000 Nanchang Nanchang 100.00% Investment
(Nanchang) muffler
WFAS 10,000 Wuxi Wuxi Smart car equipment 66.00% Investment
WFLH 2,000 Fuzhou Fuzhou Intelligent onboard equipment 40.00% Investment
Enterprise combines not under
WFDT USD2,000 Wuxi Wuxi Hub Motor 80.00%
the same control
WFQL 50,000 Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
Enterprise combines not under
VHWX 13,400 Wuxi Wuxi Vacuum and hydraulic pump 100.00%
the same control
WFSS 35,000 Wuxi Wuxi Intelligent onboard equipment 61.43% Investment
SPV DKK9,257 Denmark Denmark Investment 100.00% Investment
Enterprise combines not under
IRD DKK10,579 Denmark Denmark Fuel cell components 100.00%
the same control
Enterprise combines not under
IRD America USD1,201.83 America America Fuel cell components 100.00%
the same control
Enterprise combines not under
Borit EUR1,183.21 Belgium Belgium Fuel cell components 100.00%
the same control
Enterprise combines not under
Borit America USD0.10 America America Fuel cell components 100.00%
the same control
Enterprise combines not under
VHIO EUR500 Italy Italy Vacuum and hydraulic pump 100.00%
the same control
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the voting rights
but not controlling the investee: Nil
Control basis for inclusion in the scope of consolidation of significant structured entities: Nil
Basis for determining whether a Company is an agent or a principal: Nil
Other explanation: Nil
(2) Important non-wholly-owned subsidiary
In RMB
Share-holding ratio of Gain/loss attributable to Dividend announced to distribute Ending equity
Subsidiary
minority minority in the Period for minority in the Period of minority
WFJN 20.00% 10,272,101.63 241,758,016.59
WFLD 5.19% 11,395,939.12 176,918,768.17
Total 21,668,040.75 418,676,784.76
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
Other explanation: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsi Ending balance Opening balance
142
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
diary Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
current current current current
asset asset liability liability asset asset liability liability
asset liability asset liability
WFJ 943,938, 648,642, 1,592,58 350,278, 32,816, 383,094, 800,008, 763,327, 1,563,33 372,678, 32,816, 405,494,
N 330.32 352.39 0,682.71 308.20 414.21 722.41 834.76 722.52 6,557.28 469.77 414.21 883.98
WFL 4,464,90 1,489,44 5,954,34 2,888,08 16,576, 2,904,66 3,887,56 1,588,90 5,476,47 2,658,21 20,989, 2,679,20
D 4,447.52 3,861.25 8,308.77 5,143.32 918.48 2,061.80 4,531.99 9,706.92 4,238.91 6,800.87 867.90 6,668.77
5,408,84 2,138,08 7,546,92 3,238,36 49,393, 3,287,75 4,687,57 2,352,23 7,039,81 3,030,89 53,806, 3,084,70
Total
2,777.84 6,213.64 8,991.48 3,451.52 332.69 6,784.21 3,366.75 7,429.44 0,796.19 5,270.64 282.11 1,552.75
In RMB
Current Period Last Period
Subsidiar Cash flow Cash flow
Total Total
y Operation from Operation from
Net profit comprehensiv Net profit comprehensiv
Income operation Income operation
e income e income
activity activity
140,705,646.8 140,705,646.8
WFJN 358,340,142.20 51,211,227.09 51,211,227.09 41,046,920.99 362,347,975.32 -860,079.84
6 6
1,846,296,992.4 242,294,718.1 242,294,718.1 721,730,160.1 2,175,323,269.6 455,043,631.5
WFLD 71,083,391.94 71,083,391.94
8 6 6 7 9 0
2,204,637,134.6 293,505,945.2 293,505,945.2 762,777,081.1 2,537,671,245.0 211,789,038.8 211,789,038.8 454,183,551.6
Total
8 5 5 6 1 0 0 6
Other explanation: Nil
(4) Significant restrictions on the use of enterprise group asset 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
Other explanation: Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
(1) Owners’ equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent Company
Other explanation: Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Share-holding ratio Accounting
Main
Registe treatment on
operati
Joint venture or associated enterprise red Business nature investment for joint
on Directly Indirectly
place venture and
place
associated enterprise
Wuxi Weifu Environmental Catalysts. Co., Ltd. Wuxi Wuxi Catalyst 49.00% Equity method
Internal-combustion
RBCD Wuxi Wuxi 32.50% 1.50% Equity method
engine accessories
Shangh Shangh Internal-combustion
Zhonglian Automobile Electronics Co., Ltd. 20.00% Equity method
ai ai engine accessories
Wuxi Weifu Precision Machinery Manufacturing Internal-combustion
Wuxi Wuxi 20.00% Equity method
Company Limited engine accessories
143
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Changchun Xuyang Weifu Automobile Changc Changc Automobile
34.00% Equity method
Components Technology Co., Ltd. hun hun components
Germa Germa Fuel cell
Precors GmbH 43.39% Equity method
ny ny components
Wuxi ChelianTianxia Information Technology
Wuxi Wuxi Telematics services 9.6372% Equity method
Co., Ltd.
Lezhuo Bowei Hydraulic Technology (Shanghai) Shangh Shangh Automobile
50.00% Equity method
Co., Ltd ai ai components
Wuxi Zhuowei Times High Tech Co., Ltd Wuxi Wuxi Catalyst 39.00% Equity method
Holding shares ratio different from the voting right ratio: Nil
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold:
The Company holds 9.6372% equity of Chelian Tianxia, and appointed director to Chelian Tianxia. Though the representative, the
Company can participate in the operation policies formulation of Chelian Tianxia, and thus exercise a significant influence over
Chelian Tianxia.
(2) Main financial information of the important joint venture
Other explanation: Nil
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current Period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Electronics Electronics
13,444,988,412.7 13,057,353,298.2
Current asset 2,839,051,141.17 1,424,566,139.19 3,309,330,261.33 156,804,165.22
8 4
Including: cash
and cash 526,911,450.21 28,603,959.04 78,786,839.55 695,880,608.87 16,224,264.19 131,177,239.01
equivalent
Non -current
405,916,252.43 3,331,988,685.42 8,259,572,638.37 417,489,997.17 3,452,708,227.20 8,276,183,030.91
asset
16,776,977,098.2 16,510,061,525.4
Total asset 3,244,967,393.60 9,684,138,777.56 3,726,820,258.50 8,432,987,196.13
0 4
Current liability 1,215,794,214.26 9,093,751,284.38 1,333,753,910.26 1,402,974,842.29 8,401,045,934.29 7,530,191.60
Non-current
186,765,920.54 4,952,865.96 455,453,890.82 4,983,100.68
liability
Total liability 1,402,560,134.80 9,093,751,284.38 1,338,706,776.22 1,858,428,733.11 8,401,045,934.29 12,513,292.28
Minority interests
Attributable to
parent Company
1,842,407,258.80 7,683,225,813.82 8,345,432,001.34 1,868,391,525.39 8,109,015,591.15 8,420,473,903.85
shareholders’
equity
Share of net asset
calculated by 902,779,556.82 2,612,296,776.70 1,669,086,400.27 915,511,847.44 2,757,065,300.99 1,684,094,780.77
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 -8,984,352.76 -9,546,770.23
trading
--Other -0.28 -0.28
Book value of
equity investment
902,779,556.82 2,871,101,185.01 1,670,493,666.23 915,511,847.44 3,015,307,291.83 1,685,502,046.73
in associated
enterprise
Fair value of
equity investment
for the affiliates
with
consideration
publicly
144
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Operating income 1,846,803,762.77 5,271,654,599.19 17,135,271.43 1,767,599,633.82 6,130,896,971.82 12,971,075.74
Net profit 221,785,840.51 1,100,633,775.00 1,254,847,847.50 166,314,657.54 1,418,441,731.89 896,728,440.91
Net profit from
discontinued
operations
Other
comprehensive
income
Total
comprehensive 221,785,840.51 1,100,633,775.00 1,254,847,847.50 166,314,657.54 1,418,441,731.89 896,728,440.91
income
Financial expense 410,762.90 -26,252,360.74 -757,333.28 9,020,578.19 75,025,833.08 -1,076,733.34
Income tax
39,071,680.16 177,111,813.24 2,262,036.62 25,702,009.08 227,856,975.09 1,428,554.30
expense
Dividends
received from
associated 49,000,000.00
enterprise in the
year
(4) Financial summary for non-important joint venture and associated enterprise
In RMB
Ending balance/Current Period Opening balance/Last Period
Joint venture:
Amount based on share-holding ratio
Associated enterprise:
Total book value of investment 449,896,704.04 351,004,139.17
Amount based on share-holding ratio
--Net profit -12,695,105.24 -1,393,571.96
--Total comprehensive income -12,695,105.24 -1,393,571.96
(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 joint operation
Nil
145
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
5. Structured body excluding in consolidated financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil
6. Other
Nil
XI. Government grant
1. Government grant recognized at report ending in terms of amount receivable
□Applicable Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable Not applicable
2. Liability involved with government grant
Applicable □Not applicable
In RMB
Amount
Current Other
booked into Amount carried
Accounting increase in changes in Asset/income
Opening balance non-business forward to other Ending balance
title government current related
income in income
grant period
current period
Deferred
95,864,426.07 3,909,446.20 14,599,514.36 85,174,357.91 Asset related
income
Deferred Asset/income
2,913,862.75 25,000.00 2,888,862.75
income related
Deferred
89,995,333.47 12,188,009.01 22,248,353.44 -162,716.70 79,772,272.34 Income related
income
Total 188,773,622.29 16,097,455.21 36,872,867.80 -162,716.70 167,835,493.00
3. Government grant booked into current gain/loss
Applicable □Not applicable
In RMB
Accounting title Current Period Last Period
Other revenue 40,309,960.72 35,592,303.00
XII. Risk related with financial instrument
1. Various risks arising from financial instruments
Main financial instruments of the Company include monetary funds, structured deposits, account receivable, equity instrument
investment, financial products, loans, and account payable. For more details of the financial instruments, refer to relevant items of
Note VII. Risks concerned with the above-mentioned financial instruments, and measures taken by the Company to prevent such
risks are as follow:
The risk management by the Company is targeted to balance risk and benefit, minimize the adverse impact on performance of the
Company and maximize the benefits of shareholders and other investors. On such basis, the basic tactics of the risk management is to
146
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
recognize and analyze risks faced by the Company, establish appropriate risk exposure baseline for risk management, and supervise
risks timely and reliably in order to control risks in a limited range.
During the operation process, risks faced by the Company related to financial instruments mainly include credit risk, market risk, and
liquidity risk. BOD of the Company takes full charge of defining risk management target and polices, and takes ultimate
responsibilities for the target of risk management and policies. The compliance department and financial control department manage
and supervise risk exposures to control risks in a limited range.
(1) Credit Risk
Credit risk arises in case one party of a financial instrument fails to perform its obligations, resulting in the financial loss of other
party. The Company’s credit risk mainly comes from monetary funds, structured deposits, note receivable, account receivable and
other accounts receivable. The management has established appropriate credit policies and kept monitoring 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 lower credit
risks. The Company adopts quota policies to avoid credit risks from any financial institutions.
For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the credit risk
exposure. To prevent risks, the Company has formulated a new customer credit evaluation system and an existing customer credit
sales balance analysis system. For new customers, the Company performs background investigation according to the established
process to determine whether to offer such customer a credit line, the scale of credit line as well as 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. For the analysis system for credit sales balance of existing customers, after receiving a purchase order from an
existing customer, the Company will check the order amount and the balance of the accounts owed by such customer. 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
of credit line and otherwise the customer will 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 fluctuates with the
changing market price, mainly including interest rate risk, foreign exchange risk and other price risk.
(1) Interest rate risk
Interest rate risk indicates that the Company’s financial status and cash flow fluctuate with the changing market interest rate. The
interest rate risk of the Company is mainly related with the bank loans. In order to lower the impact of risks of fluctuating interest
rate, the Company, in consideration of the expected change orientation of interest rate, chooses floating rate or fixed rate. The
Company will choose fixed interest rate if the interest rate is expected to go up in the future period, and alternatively choose
floating interest rate if the interest rate is expected to go up in the future period. In order to minimize the adverse impact if the
change trend of interest rate is out of expectation, the Company selects short-term borrowings to satisfy its demands for liquidity
and there are special provisions for early repayment.
(2) Foreign exchange risk
Foreign exchange risk refers to the loss arising from fluctuation of exchange rate. The foreign exchange risk posed to the
Company is mainly related to USD, EUR, CHF, JPY, HKD and DKK. The procurement of equipment by the parent Company and
WFAM, the material purchasing of the parent Company, the payment of technical service expense and trademark royalty of the
147
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
parent Company, the import and export of WFTR, as well as the operation of IRD, Borit, and VHIO are settled in USD, EUR,
CHF, JPY, HKD and DKK. Other main businesses of the Company are priced and settled in RMB (yuan). As the foreign financial
asset and liability takes minor ratio in total asset, the Company’s management believes that the foreign exchange rate of is lower.
As of June 30, 2024 except for the following asset or liability listed with foreign currency, asset and liability of the Company are
carried with RMB.
① Foreign currency asset of the Company till end of June 30, 2024:
Ending foreign Ending RMB balance
Item Convert rate Ratio in asset (%)
currency balance converted
Monetary funds
Including: USD 16,285,629.19 7.1268 116,064,427.21 0.42
EUR 33,935,744.06 7.6617 260,005,312.82 0.93
HKD 8,322,447.55 0.91268 7,595,731.43 0.03
JPY 23,112,182.00 0.044738 1,033,992.80 -
DKK 10,416,593.11 1.0231 10,657,216.41 0.04
Account receivable
Including: USD 3,465,962.85 7.12680 24,701,224.04 0.09
EUR 28,553,346.72 7.66170 218,767,176.56 0.78
JPY 8,393,745.00 0.044738 375,519.36 -
DKK 12,119,424.99 1.02310 12,399,383.71 0.04
Other account receivables
Including: USD 130.00 7.1268 926.48 -
EUR 209,060.06 7.6617 1,601,755.46 0.01
DKK 2,529,970.01 1.0231 2,588,412.32 0.01
Total ratio in asset 2.35
② Foreign currency liability of the Company till end of June 30, 2024:
Ending foreign Ending RMB balance
Item Convert rate Ratio in asset(%)
currency balance converted
Account payable
Including: USD 1,268,290.44 7.1268 9,038,852.31 0.12
EUR 27,088,185.10 7.6617 207,541,547.78 2.71
JPY 10,088,612.00 0.044738 451,344.32 0.01
DKK 24,034,162.32 1.0231 24,589,351.47 0.32
GBP 2,450.00 9.0430 22,155.35
CHF 87,388.49 7.9471 694,485.07 0.01
Other account payable
Including: EUR 1,087.90 7.1268 7,753.25
DKK
Non-current liability due
within one year
Including: USD 156,471.72 7.1268 1,115,142.65 0.01
EUR 546,267.95 7.6617 4,185,341.15 0.05
DKK 1,630,830.84 1.0231 1,668,503.03 0.02
Leasing liability
Including USD 150,930.11 7.1268 1,075,648.71 0.01
EUR 870,260.74 7.6617 6,667,676.71 0.09
DKK 18,619,783.47 1.0231 19,049,900.47 0.25
Total ratio in liability 3.60
③ Other pricing risk
148
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
The equity instrument investment held by the Company with classification as transaction financial asset and other non-current
financial asset is measured on fair value of the balance sheet date. The fluctuation of expected price for these investments will
affect the gain/loss of fair value changes for the Company.
Furthermore, on the premise of deliberated and approved in 10th meeting of 23rd session of the BOD and 2023 Annual General
Meeting of Shareholders, 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 the
Management Mechanism of Capital Financing, and well-defined the authority to entrust financial management, audit process,
reporting system, Choice of trustee, daily monitoring and verification and investigation of responsibility, etc. 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 5 years in principle; The variety of investment includes bank financial products, trust plans of trust
companies, asset management plans of asset management companies, various products issued by securities companies, fund
companies and insurance companies, etc.
(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 asset. 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.
2. Hedge
(1) Risk management for hedge business
□Applicable Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
Other explanation: Nil
(3) The Company conducts hedging business for risk management. It is expected to achieve risk
management goals but has not applied hedging accounting
□Applicable Not applicable
3.Financial asset
(1) By transfer manner
Applicable □Not applicable
In RMB
Transfer Amount of transferred Derecognized Judgment basis for
Nature of transferred financial asset
method financial asset or not derecognition
Bill Bank acceptance bills in accounts 195,820,141.64 Derecognized Almost all of its risks and
149
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
endorsement receivable financing that have not yet rewards have been
matured transferred
Bank acceptance bills in accounts Almost all of its risks and
Bill
receivable financing that have not yet 420,843,143.82 Derecognized rewards have been
discounting
matured transferred
Total 616,663,285.46
(2) Financial asset derecognized due to transfer
Applicable □Not applicable
In RMB
Methods of transferring Amount of derecognized Gain/loss related to de-
Item
financial asset financial asset recognition
Accounts receivable financing Bill endorsement 195,820,141.64
Accounts receivable financing Bill discounting 420,843,143.82 -2,198,912.35
Total 616,663,285.46 -2,198,912.35
(3) Financial asset which are transferred and involved continuously
Applicable □Not applicable
Other explanation: Nil
XIII. Disclosure of fair value
1. Ending fair value of the asset and liability measured by fair value
In RMB
Ending fair value
Item
First level Second level Third level Total
I. Sustaining measured at fair value -- -- -- --
(I) Financial asset measured at fair value and
whose changes are included in current profit 96,974,728.00 2,004,343,254.20 2,101,317,982.20
or loss
1. Trading financial asset 96,010,728.00 1,335,706,329.05 1,431,717,057.05
(1)Investment in equity instrument 96,010,728.00 96,010,728.00
(2)Investment in other liability instruments
1,335,706,329.05 1,335,706,329.05
and equity instrument
2. Other non-current financial asset 964,000.00 668,636,925.15 669,600,925.15
(1)Equity instrument investment 964,000.00 668,636,925.15 669,600,925.15
(II) Financial asset measured at fair value and
whose changes are included in current profit 2,539,397,639.90 2,539,397,639.90
or loss
1. Receivable financing 1,861,606,949.90 1,861,606,949.90
2. Other equity instrument investment 677,790,690.00 677,790,690.00
Total asset sustaining measured by fair value 96,974,728.00 4,543,740,894.10 4,640,715,622.10
II. Non-persistent measure of fair value -- -- -- --
150
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first
level
On June 30, 2024, the financial asset available for sale, equity instrument investments held by the Company include SNAT (stock
code: 600841) and Miracle Automation (Stock code: 002009). The fair value at the end of the reporting period is determined at the
closing price as of June 28, 2024.
On June 30, 2024, the non-current financial asset, equity instrument investments held by the Company include Guolian Securities
(stock code: 601456). The fair value at the end of the reporting period is determined at the closing price as of June 28, 2024.
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second level
Nil
4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third level
(1) Accounts receivable financing
For this portion of financial asset, the Company uses discounted cash flow valuation techniques to determine their fair value.
Among them, important unobservable input values mainly include discount rate, contract cash flow maturity period, etc. Cash
flows with a contract expiration period of 12 months or less are not discounted and are valued at cost.
(2) Other equity instrument investments
For this portion of financial asset, due to the lack of market liquidity, the Company uses the reset cost method to determine their
fair value. Among them, important unobservable input values mainly include financial data of the invested Company.
(3) Other debt instruments and equity instrument investments
For this portion of financial asset, the Company uses discounted cash flow valuation techniques to determine. Among them,
important unobservable input values mainly include expected annualized returns, risk coefficients, 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 asset and financial liability not measured by fair value
Nil
151
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
9. Other
Nil
XIV. Related party and related party transactions
1. Parent Company of the enterprise
Parent Registrati Share-holding ratio on the Voting right ratio
Business nature Registered capital
Company on place enterprise for parent Company on the enterprise
Wuxi Industry Operation of 5,927,940,200
Wuxi 20.47% 20.47%
Group state-owned asset yuan
Explanation on parent Company of the enterprise:
Wuxi Industry Group is an enterprise controlled by the State-owned Asset Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own asset, house leasing services, self-operating and
acting as an agent for the import and export business of various commodities and technologies (Except for goods and technologies
that are restricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibited
items). (Projects that are subject to approval in accordance with the law can be operated only after being approved by relevant
departments).
Ultimate controller of the Company is State-owned Asset Management Committee of Wuxi Municipal People’s Government.
Other explanation: Nil
2. Subsidiary of the Company
For more details of the Company’s subsidiaries, please refer to note - X. 1 “Equity in subsidiary”.
3. Joint venture and associated enterprise
For more details, please refer to the relevant Note - X. 3 “Equity in joint venture and associated enterprise”.
Other associated enterprise or joint ventures which has related transaction with the Company in the reporting period or occurred
previous are as follows:
Other explanation: Nil
4. Other related party
Name of Other related party Relationship between other related parties and the Company
Bosch Second largest shareholder of the Company
Guokai Metal Enterprises controlled by the parent Company
Urban Public Distribution Enterprises controlled by the parent Company
FAILCONTECH Enterprises controlled by the parent Company
The parent Company is the major shareholder, and a related
Wuxi IOT
natural person of the Company serves as the chairman
EDRI Enterprises controlled by the parent Company
Enterprises controlled by the Company’s former director/senior
Hebei Machinery
management elder brother
Hebei Deshuang Enterprises controlled by Hebei Machinery
Hebei Jinda Enterprises controlled by Hebei Machinery
Hebei Lanpai Enterprises controlled by Hebei Machinery
152
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Hebei Mianzhuo Enterprises controlled by Hebei Machinery
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
Whether more than
Content of related Approved
Related party Current Period the transaction limit Last Period
transaction transaction limit
(Y/N)
WFPM Goods and labor 18,856,716.80 45,000,000.00 N 19,815,457.88
RBCD Goods and labor 121,126,592.18 313,000,000.00 N 131,039,396.29
WFEC Goods and labor 150,641,937.84 1,198,000,000.00 N 379,816,654.91
Bosch Goods and labor 111,047,597.86 222,000,000.00 N 111,692,343.27
Guokai Metals Goods N 15,867,033.58
EDRI Goods 28,301.89 Y
FAILCONTECH Goods 14,500.00 Y
Wuxi IOT Goods and labor 20,660.38 Y
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current Period Last Period
WFPM Goods and labor 387,979.10 506,017.52
RBCD Goods and labor 660,179,963.62 1,090,789,696.99
WFEC Goods and labor 247,567.53 4,677,697.81
Bosch Goods and labor 994,815,431.08 846,273,667.53
Changchun Xuyang Goods and labor 506,713.80 678,183.20
Lezhuo Bowei Goods and labor 5,155,881.45 222,373.51
Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services
Nil
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
The Company as lessor:
In RMB
Lease income recognized in the Lease income recognized at last
Lessee Asset type
Period Period
WFEC Workshop 1,003,317.02 1,003,317.02
RBCD Parking lost 234,000.00 110,200.00
Lezhuo Bowei Workshop and equipment 1,548,658.50 1,057,234.32
The Company as lessee:
Explanation on related lease
153
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
WFLD entered into a house leasing contract with WFEC. The plant locating at No.9 Linjiang Road, Wuxi Xinwu District, owed
by WFLD, was rented out to WFEC. It is agreed that the rental income from January 1, 2024 to June 30, 2024 was 1,003,317.02
yuan.
WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leased a portion of WFJN’s plant located at No. 12
Liuzhou North Road, Pukou District, Nanjing City. The lease term is from January 1, 2023 to December 31, 2024. WFJN has
confirmed the rental income of 1,411,858.50 yuan for the period from January 1, 2024 to June 30, 2024; Lezhuo Bowei also rented
some equipment from WFJN, and WFJN confirmed equipment rental income of 136,800.00 yuan for the period from January 1,
2024 to June 30, 2024.
(4) Connected guarantee
Nil
(5) Related party’s borrowed/lending funds
Nil
(6) Related party’s asset transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 1,950,000.00 2,300,000.00
(8) Other related transactions
Related party Contents of item Current Period Last Period
Bosch Pay technical commission fees, etc 2,430,001.29 1,990,910.38
Bosch Purchase of fixed asset 1,052,964.60
Bosch Energy fees receivable 393,590.45
WFPM Purchase of fixed asset 3,000.00 106,000.00
WFEC Utilities payable 106,859.84 528,099.08
WFEC Payable technical service fees 258,396.23
WFEC Receivable technical service fees 244,150.94
Urban public distribution Purchase canteen ingredients, etc 1,086,549.83 709,227.44
Lezhuo Bowei Energy fees receivable 888,799.56 304,658.93
Wuxi IOT Provide technical services, etc 374,764.15
(9) Related transactions to “platform trade” business
Current Period Last Period
Name of related party
Sales Purchase fund Sales Purchase fund
Hebei Machinery
154
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Current Period Last Period
Name of related party
Sales Purchase fund Sales Purchase fund
Hebei Jinda -56,753,804.02
Hebei Deshuang
Hebei Lanpai
Hebei Mianzhuo
Total -56,753,804.02
Other explanation: Due to being under the control of Hebei Machinery and based on the essence of the “platform trade” business,
WFTR listed the difference between the “purchase fund” paid to Hebei Jinda, Hebei Deshuang, Hebei Lanpai, and Hebei
Mianzhuo in the “platform trade” business and the “sales” received from Hebei Machinery as other receivables. The negative
“purchase fund” paid by WFTR to Hebei Jinda in 2023 is the “purchase fund” returned by Hebei Jinda.
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Account receivable WFPM 109,252.85 170,770.59
Account receivable RBCD 732,084,006.85 1,170,780.48 686,424,501.80 1,017,817.82
Account receivable Bosch 543,715,050.47 2,251,804.00 596,846,772.56 782,592.70
Account receivables WFEC 1,487,356.00 60,930.00 1,787,498.57
Account receivable Changchun Xuyang 482,188.78 220,134.29
Account receivables Lezhuo Bowei 4,631,585.33 74.07 3,520,841.22
Other non-current asset Bosch 2,255,998.16 2,500,307.00
Other non-current asset Bosch 3,510,400.00 470,000.00
Other non-current asset Wuxi Industry Group 5,452,800.00 5,452,800.00
Prepayments Bosch 375,910.15
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Account payable WFPM 13,222,902.48 15,511,126.97
Other account payable WFPM 29,000.00 29,000.00
Account payable WFEC 39,505,305.93 480,670,597.42
Account payable RBCD 88,080,480.26 49,028,994.76
Account payable Bosch 15,556,402.22 18,947,846.60
Other current liability RBCD 0.05 0.05
Contract liability RBCD 0.36 0.36
Contract liability Bosch 7,397,963.98 6,986,398.10
(3) Related claims of “platform trade” business
Item Related party Ending balance Opening balance
Other receivables Hebei Machinery -2,125,487,770.72 -2,125,487,770.72
155
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Other receivables Hebei Jinda 1,958,470,484.57 1,958,470,484.57
Other receivables Hebei Deshuang 1,436,757,179.96 1,436,757,179.96
Other receivables Hebei Lanpai 609,404,930.22 609,404,930.22
Other receivables Hebei Mianzhuo 479,253,260.75 479,253,260.75
Total 2,358,398,084.78 2,358,398,084.78
Note: Because Hebei Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on the
business essence of "platform trade" business, WFTR listed the difference between the "purchase fund" paid by WFTR to Hebei
Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo and the "sales" received from Hebei Machinery 2,358,398,084.78 yuan
as other receivables, including: The "sales payment" received from Hebei Machinery is presented as a negative number. As of June
30, 2024, the Company has made a bad debt provision of 1,448,358,922.04 yuan for the balance of other receivables; The bad debt
provision balance is calculated by 80.10%, which is the proportion of other receivables balance of Hebei Machinery and its
controlled companies 2,415,151,888.80 yuan to other receivables balance of WFTR's "platform trade" business portfolio
2,741,499,131.95 yuan as of December 31, 2022 multiply the bad debt provision for other accounts receivable balances in
WFTR’s "platform trade" business portfolio 1,644,068,327.93 yuan.
7. Undertakings of related party
Nil
8. Other
Nil
XV. Share-based payment
1. Overall situation of share-based payment
Applicable □Not applicable
In RMB
Granted in current Executed in current Unlocked in current
Category of Expired in current period
period period period
grant object
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Sales staff 184,740 2,268,607.20
Administrative
3,383,220 41,545,941.60
staff
R&D staff 959,700 11,785,116.00
Production staff 648,840 7,967,755.20
Total 5,176,500 63,567,420.00
Stock options or other equity instruments issued to the public at the end of the reporting period
□Applicable Not applicable
Other explanation: Nil
2. Share-based payment settled by equity
Applicable □Not applicable
In RMB
156
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Determine based on the closing price of the
Method for determining the fair value of equity instruments on the grant date
restricted stock on the grant date
Important parameters for determining the fair value of equity instruments on
Closing price at grant date
the grant date
Basis for determining the number of vesting equity instruments Unlocking conditions
Reasons for the significant difference between estimate in the current period
Not applicable
and estimate in the prior period
Cumulative amount of equity-settled share-based payments included in the
81,051,840.00
capital reserve
Total amount of expenses confirmed by equity-settled share-based payments in
0.00
the current period
3. Share-based payment settled by cash
□ Applicable Not applicable
4. Current share-based payment expenses
□ Applicable Not applicable
5. Modification and termination of share-based payment
Nil
6. Other
Nil
XVI. 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
157
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
3. Other
Nil
XVII. Events after the balance sheet date
1. Important non-adjustment matters
Nil
2. Profit distribution
Proposed distribution of dividends per 10 shares(yuan) 2.20
Plan to distribute every 10 bonus shares(share) 0
Proposed allocation of additional shares for every 10 shares(share) 0
The dividend payout for every 10 shares declared after review and approval(yuan) 2.20
Every 10 dividend shares declared for distribution after review and approval(yuan) 0
Proposed allocation of additional shares for every 10 shares after review and approval(share) 0
Based on the 971,986,293 shares which exclude the buy-back shares on buy-back account
(25,000,000 A-stock) from total share capital 996,986,293 shares (According to the provisions of the
The Company Law of the People's Republic of China, the listed Company does not have the right to
participate in the profit distribution and the conversion of the capital reserve into the share capital by
repurchasing the shares held by the Company through the special securities account), distributing
2.20 yuan (tax included) cash dividend for every 10 shares held, no bonus shares, without
Profit distribution plan
capitalization from capital reserves. The total amount of cash dividend to be paid is RMB
213,836,984.46 yuan (tax included). If the total share capital of the Company changes before the
implementation of the distribution plan, the Company will be allocated according to the principle of
unchanged distribution proportion and adjustment of the total amount of distribution. The above
distribution plan complies with the provisions of the Company's Articles of association and review
procedures, fully protecting the legitimate rights and interests of small and medium-sized investors.
3. Return of sales
Nil
4. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors correction
(1) Retrospective restatement
Nil
158
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) Prospective application
Nil
2. Debt restructuring
Nil
3. Asset replacement
(1) Non-monetary asset replacement
Nil
(2) Other asset replacement
Nil
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th meeting of 7th session of the 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 enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the
enterprise per year, the combined contribution of the enterprise and the individual employee shall not exceed 12% of the total
salary of the employees of the enterprise. In accordance with the State’s annuity policy, the Company will adjust 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 maximum annual allocation to employees shall not exceed
five times the average allocation to employees and the excess shall not be counted towards the allocation. The individual
contribution is limited to 1% of one’s total salary for the previous year. Specific paying ratio later shall be adjusted
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. Termination of operation
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:
159
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
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;
③ Being analyzed, financial status, operation results and cash flow of the components are able to require by the Company
If two or more operating segments have similar economic characteristics and meet certain conditions, they can be merged into one
operating segment.
The Company considers the principle of importance and determines the reporting segments based on the operating segments. The
reporting segment of the Company is a business unit that provides different products or services or operates in different regions.
Due to the need for different technologies and market strategies in various businesses or regions, the Company independently
manages the production and operation activities of each reporting segment, evaluates their operating results individually, and
decides to allocate resources to them and evaluate their performance.
(2) Financial information for reportable segment
In RMB
Automotive fuel Automotive post Air Other automotive Offsetting
Item injection system and fuel processing system management components between Total
cell component segment segment system segment segment segments
Operating
3,046,981,942.70 1,870,569,145.39 524,910,114.67 988,240,063.85 736,467,713.89 5,694,233,552.72
income
Operation
2,443,257,848.96 1,594,153,912.73 407,560,919.56 899,384,298.35 723,804,226.06 4,620,552,753.54
cost
(3) If the Company has no reportable segments or is unable to disclose the total asset and liability of each
reportable segment, it should state the reasons
The Company mainly produces automotive internal combustion engine fuel systems and fuel cell components, automotive
components, silencers, purifiers, vacuum and hydraulic pumps, and other related products. The Company determines the reporting
segments based on product or service content, but due to the mixed operation of related businesses, the total asset, total liability,
and period expenses have not been allocated.
(4) Other explanations
Nil
7. Other Significant Transactions and Matters Affecting Investors' Decisions
(1) The security organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its “platform
trade” business. (For details, please refer to the Company's announcement No. 2023-007 disclosed on www.cninfo.com.cn and
other information disclosure websites on April 13, 2023). At present, the case is in the stage of public prosecution from Wuxi
People's Procuratorate to Wuxi Intermediate People's Court, and the outcome of the case is uncertain in the future.
(2) Based on the "platform trade" business’s background, transaction chain, sales and purchase contract signing, transaction
process, physical flow and so on, the Company carefully analyzed and made comprehensive judgment, finds that the probability of
this business not belonging to normal trade business is extremely high. In terms of accounting treatment, the Company follows the
principle of substance over form and does not treat it as normal trade business, but according to the receipt and payment of funds,
prudently counts as claims and liability, respectively, purchases actually paid to "suppliers" and sales collected from "customers",
Other receivables are reported on a net basis in the financial statements as a "platform trading" portfolio. As of June 30, 2024, the
balance of the “platform trade” business portfolio was RMB 2,542.2634 million yuan, and an expected credit loss of RMB
160
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
1,644.0683 million yuan has been provisioned. Based on the comprehensive judgment of information from authorized departments,
the Company has determined that there has been no significant change in the recoverable amount of debt in the “platform trade”
business portfolio, and there is no need for further provision or significant reversal of expected credit loss. The recoverable amount
of debt in the “platform trade” business combination is highly dependent on a series of judicial procedures such as investigation,
prosecution, trial, judgment, and execution of the case, and the results still have uncertainty.
8. Other
Nil
XIX. Principal notes of financial statements of parent Company
1. Account receivable
(1) By account aging
In RMB
Aging Ending book balance Beginning book balance
Within one year(inclusive) 1,425,283,512.21 1,376,943,595.48
Including: within six months 1,402,610,663.14 1,365,664,197.96
Six months to one year 22,672,849.07 11,279,397.52
1-2 years 9,541,302.13 9,348,871.78
2-3 years 3,708,932.83 732,334.63
Over three years 2,434,994.34 6,457,957.26
3 - 4 years 1,343,660.60 1,522,747.95
4 - 5 years 16,633.61 101,188.83
Over 5 years 1,074,700.13 4,834,020.48
Total 1,440,968,741.51 1,393,482,759.15
(2) Accrued of bad debt provision
In RMB
Ending balance Opening balance
Category Book balance Bad debt reserve Book balance Bad debt reserve
Book Book
Accrued value Accrued value
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Account receivable
with bad debt 503,945.2 503,945.2 4,774,540 4,774,540
0.03% 100.00% 0.34% 100.00%
provision accrued on 4 4 .26 .26
a single basis
Including:
Account receivable
with bad debt 1,440,464 6,822,133 1,433,642 1,388,708 4,648,838 1,384,059
99.97% 0.47% 99.66% 0.33%
provision accrued on ,796.27 .23 ,663.04 ,218.89 .01 ,380.88
portfolio
Including:
Receivables from 1,283,519 6,822,133 1,276,697 1,219,857 4,648,838 1,215,208
89.07% 0.53% 87.54% 0.38%
customers ,778.83 .23 ,645.60 ,129.33 .01 ,291.32
Receivables from
156,945,0 156,945,0 168,851,0 168,851,0
internal related 10.90% 12.12%
17.44 17.44 89.56 89.56
parties
1,440,968 7,326,078 1,433,642 1,393,482 9,423,378 1,384,059
Total 100.00% 0.51% 100.00% 0.68%
,741.51 .47 ,663.04 ,759.15 .27 ,380.88
161
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Bad debt provision accrued on single basis: 503,945.24
In RMB
Beginning balance Ending balance
Name Book Bad debt Book Bad debt Accrued
Accrued causes
balance reserve balance reserve ratio
BD bills 4,270,595.02 4,270,595.02
Tianjin Leiwo Engine Have difficulty in
503,945.24 503,945.24 503,945.24 503,945.24 100.00%
Co., Ltd. collection
Total 4,774,540.26 4,774,540.26 503,945.24 503,945.24
Bad debt provision accrued on portfolio: 6,822,133.23
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Within 6 months 1,251,302,247.47
6 months to one year 19,079,989.07 1,907,998.93 10.00%
1-2 years 7,497,560.36 1,499,512.07 20.00%
2-3 years 3,708,932.83 1,483,573.13 40.00%
Over 3 years 1,931,049.10 1,931,049.10 100.00%
Total 1,283,519,778.83 6,822,133.23
Explanation on determining the basis of this portfolio:
In the portfolio, accounts receivable from internal related parties:
Name of related party Amount Ratio of bad debt provision (%)
WFTR 88,143,963.69 --
WFSC 41,841,909.52 --
VHWX 17,418,428.15
WFLD 9,117,998.99 --
WFQL 422,717.09
Total 156,945,017.44 --
If the provision for bad debts of accounts receivable is made according to the general model of expected credit loss:
□Applicable Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
Amount changed in the reporting period
Category Opening balance Collected or Ending balance
Accrued Written-off Other
reversal
Bad debt provision 9,423,378.27 2,173,295.22 4,270,595.02 7,326,078.47
Total 9,423,378.27 2,173,295.22 4,270,595.02 0.00 0.00 7,326,078.47
Important bad debt provision collected or reversal: Nil
(4) Account receivable actual charged off in the reporting period
Nil
162
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(5) Top 5 receivables and contract asset at ending balance by arrears party
In RMB
Ending Ratio in total ending Ending balance of bad
Ending balance of
Ending balance of balance of balance of account debt reserve and
Name account receivable and
account receivable contract receivable and impairment reserve of
contract asset
asset contract asset contract asset
RBCD 732,064,231.85 732,064,231.85 50.80% 1,170,780.48
Bosch 219,380,007.89 219,380,007.89 15.22% 1,609,067.82
Client 3 142,715,272.25 142,715,272.25 9.90% 399,249.28
WFTR 88,143,963.69 88,143,963.69 6.12%
WFSC 41,841,909.52 41,841,909.52 2.90%
Total 1,224,145,385.20 1,224,145,385.20 84.94% 3,179,097.58
2. Other accounts receivable
In RMB
Item Ending balance Opening balance
Interest receivable 3,632,064.24 842,323.12
Dividends receivable 775,914,958.91
Other account receivables 1,441,774,047.65 1,369,807,069.16
Total 2,221,321,070.80 1,370,649,392.28
(1) Interest receivable
1) Category of interest receivable
In RMB
Item Ending balance Opening balance
Interest receivable of subsidiary 3,632,064.24 842,323.12
Total 3,632,064.24 842,323.12
2) Significant overdue interest
Other explanation: Nil
3) Accrued of bad debt provision
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Interest receivable actually charged off during the reporting period
Nil
163
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) Dividend receivable
1) Category of dividend receivable
In RMB
Item (or investee) Ending balance Opening balance
Zhonglian Electronics 266,000,000.00
RBCD 504,543,000.42
WFPM 5,357,758.49
Guolian Securities 14,200.00
Total 775,914,958.91
2) Important dividend receivable with account age over one year
Nil
3) Accrued of bad debt provision
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Dividend receivable actually charged off during the reporting period
Nil
(3) Other account receivable
1) Other account receivables classification by nature
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 643,234.06 520,080.00
Balance of related party in the consolidate scope 3,078,109,351.33 3,006,132,546.93
Margin 4,136,816.99 3,920,799.33
Social security and provident fund paid 6,229,340.15 6,119,110.70
Other 371,066.21
Total 3,089,118,742.53 3,017,063,603.17
2) By account age
In RMB
Account age Ending book balance Beginning book balance
Within one year (One year included) 296,529,664.99 365,322,657.63
164
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Including: within 6 months 225,835,242.49 134,688,758.70
6 months to one year 70,694,422.50 230,633,898.93
1-2 years 933,729,008.92 2,648,713,049.33
2-3 years 1,856,150,172.41 218,000.00
Over 3 years 2,709,896.21 2,809,896.21
3-4 years 1,932,820.00 2,032,820.00
4-5 years 761,330.00 769,876.21
Over five years 15,746.21 7,200.00
Total 3,089,118,742.53 3,017,063,603.17
3) Accrued of bad debt provision
Provision for bad debts based on the general model of expected credit loss:
In RMB
Phase I Phase II Phase III
Expected credit loss for Expected credit loss for
Bad debt reserve Expected credit Total
the entire duration the entire duration (with
loss over next 12
(without credit credit impairment
months
impairment occurred) occurred)
Balance of Jan. 1, 2024 3,188,206.08 1,644,068,327.93 1,647,256,534.01
Balance of Jan. 1, 2024 in the
reporting period
Current reversal 88,160.87 88,160.87
Balance on June 30, 2024 3,276,366.95 1,644,068,327.93 1,647,344,694.88
Change of book balance of loss provision with amount has major changes in the reporting period
□Applicable Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
Amount changed in the reporting period
Category Opening balance Ending balance
Accrued Collected or reversal Written-off Other
Bad debt provision 1,647,256,534.01 88,160.87 1,647,344,694.88
Total 1,647,256,534.01 88,160.87 1,647,344,694.88
Including the important bad debt provision reversal or collected in the reporting period: Nil
5) Other receivables actually charged off during the reporting period
Nil
6) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Account Ending balance of
Name of enterprise Nature Ending balance balance of other
age bad debt reserve
receivables
Balance of related
1-3
WFTR party in the 2,788,260,000.00 90.26% 1,644,068,327.93
years
consolidate scope
165
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Balance of related
Within 1
IRD party in the 133,822,206.40 4.33%
year
consolidate scope
Balance of related Within
WFCA party in the 122,468,898.93 six 3.96%
consolidate scope months
Balance of related
Within
BORIT party in the 33,558,246.00 1.09%
one year
consolidate scope
Zhenkunxing Industrial
Within 3
Supermarket (Shanghai) Margin 1,000,000.00 0.03% 1,000,000.00
year
Co., Ltd.
Total 3,079,109,351.33 99.67% 1,645,068,327.93
7) Those booked into other account receivables due to centralized fund management
Other explanation: Nil
3. Long-term equity investments
In RMB
Ending balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment loss impairment loss
Investment in
3,121,879,242.19 3,121,879,242.19 3,116,879,242.19 3,116,879,242.19
subsidiary
Investment in
associates and 4,828,564,846.05 4,828,564,846.05 4,891,133,182.10 4,891,133,182.10
joint venture
Total 7,950,444,088.24 7,950,444,088.24 8,008,012,424.29 8,008,012,424.29
(1) Investment in subsidiary
In RMB
Opening Changes in current period Ending
balance of Provision balance of
Opening balance Ending balance
Investee provision for Additional Negative for provision for
(book value) Other (book value)
impairment Investment Investment impairment impairment
loss loss loss
WFJN 185,704,551.82 185,704,551.82
WFLD 467,856,451.80 467,856,451.80
WFMA 170,986,195.35 170,986,195.35
WFCA 222,664,737.01 222,664,737.01
WFTR 33,726,511.51 33,726,511.51
WFSC 51,116,685.47 51,116,685.47
WFTT 238,063,380.00 238,063,380.00
WFAM 82,454,467.99 82,454,467.99
WFDT 54,012,820.23 54,012,820.23
SPV 1,240,910,511.02 1,240,910,511.02
WFLD(Chongqing) 191,160.00 191,160.00
WFAS 631,890.00 631,890.00
WFQL 225,000,000.00 225,000,000.00
VHWX 143,559,879.99 143,559,879.99
WFSS 5,000,000.00 5,000,000.00
Total 3,116,879,242.19 5,000,000.00 3,121,879,242.19
166
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
(2) Investment in associated enterprises and joint venture
In RMB
Opening Current changes (+/ -)
Openi Endin Ending
balance Investm Cash
ng Other g balance of
of Addition ent Other dividend
balanc Capital equit Impairm balan provision
Investee provision al gain/loss comprehens or profit Oth
e reducti y ent ce for
for investm recogniz ive income announc er
(book on chan Accrued (book impairment
impairm ent ed under adjustment ed to
value) ge value) loss
ent loss equity issued
I. Joint venture
II. Associated enterprise
2,892, 2,754,
367,168, 504,543,
RBCD 038,98 664,0
114.71 000.42
1.78 96.07
1,685, 1,670,
Zhonglian 250,991, 266,000,
502,04 493,6
Electronics 619.50 000.00
6.73 66.23
41,414 38,65
1,810,85 783,3 5,357,75
WFPM ,341.5 0,791.
8.00 50.57 8.49
8 66
-
182,68 - 178,9
Chelian 1,221
0,857. 2,504,18 54,77
Tianxia ,900.
61 7.11 0.11
39
89,496 - 185,8
Lezhuo 110,000,
,954.4 13,695,4 01,52
Bowei 000.00
0 32.42 1.98
-
4,891, 4,828,
110,000, 603,770, 438,5 775,900,
Subtotal 133,18 0.00 0.00 564,8
000.00 972.68 49.82 758.91
2.10 46.05
-
4,891, 4,828,
110,000, 603,770, 438,5 775,900,
Total 133,18 564,8
000.00 972.68 49.82 758.91
2.10 46.05
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing
Nil
Reasons for significant discrepancies between the information used in the Company's previous annual impairment tests and the
actual situation of the current year
Nil
(3) Other explanations
Nil
4. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main business 1,571,269,780.01 1,268,571,319.80 1,939,140,764.98 1,537,898,648.30
167
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
Other business 76,619,546.23 53,197,251.79 60,842,681.73 44,901,531.85
Total 1,647,889,326.24 1,321,768,571.59 1,999,983,446.71 1,582,800,180.15
5. Investment income
In RMB
Item Current Period Last Period
Investment income from holding transaction financial asset 34,771,161.26 66,697,793.52
Investment income in joint ventures and associated enterprises 603,770,972.68 644,975,916.19
Revenue from debt restructuring -81,000.00
Total 638,461,133.94 711,673,709.71
6. Others
Nil
XX. Supplementary Information
1. Current non-recurring gain/loss
Applicable □Not applicable
In RMB
Item Amount Note
Gain/loss from the disposal of non-current asset 5,473,643.37
Governmental grants reckoned into current gain/loss (except for those with normal operation business concerned,
and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis 25,710,446.36
according to certain standards)
Except for the effective hedging operations related to normal business operation of the Company, the gain/loss of
fair value changes from holding the trading financial asset and trading financial liability, and the investment
-105,941,910.61
earnings obtained from disposing the trading financial asset, trading financial liability and financial asset
available for sale
Gain/loss of asset delegation on others’ investment or management 37,850,294.00
Gain/loss of debt restructuring -284,132.56
Other non-operating income and expenditure except for the aforementioned items 5,057,475.05
Receivables and contract asset that have undergone separate impairment testing shall have their impairment
5,343,622.79
provisions reversed
Account charged off in previous years and recovered in current year 10,418.17
Less: Impact on income tax -6,351,104.63
Impact on minority shareholders’ equity (after tax) 306,523.64
Total -20,735,562.44 --
Specific information on other items of profits/loss that qualified the definition of non-recurring profit(gain)/loss
□Applicable Not applicable
The Company does not have other items of profits/loss that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the
recurring profit(gain)/loss
□Applicable Not applicable
168
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2024
2. ROE and earnings per share
Earnings per share
Weighted
Profits during the reporting period Basic earnings per Diluted earnings per
average ROE
share (RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the Company 4.84% 0.98 0.98
Net profits belong to common stock stockholders of the Company after
4.95% 1.00 1.00
deducting nonrecurring gain and loss
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net asset 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 asset 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
Nil
4. Other
Nil
BOD of WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
Chairman:
Yin Zhenyuan
August 22, 2024
169
