Weifu High-Technology Group Co., Ltd.
ANNUAL REPORT 2017
April 2018
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of
accounting works and Ou Jianbin, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2017 Annual
Report is authentic, accurate and complete.
Other directors attending the Meeting for annual report deliberation except for
the followed
Name of director absent Title for absent director Reasons for absent Attorney
Rudolf Maier Director Travel for business Chen Xuejun
Chen Yudong Director Travel for business Chen Xuejun
Lou Diming Independent director Travel for business Xing Min
Concerning the forward-looking statements with future planning involved in the
Report, they do not constitute a substantial commitment for investors. Investors
should be cautious with investment risks. The Company described the risks that
might occurred in the operation in the report “IX- The Company’s future
development prospects” of “Section IV- Discussion and Analysis of the
Operation” and “X. Risks with financial instrument concerned” in Section XI.
Financial Report, as well as the risk management policy the Company will take
in order to reduce those risks. Investors should pay attention to relevant content.
The China Securities Journal, Securities Times, Hong Kong Commercial Daily
and Juchao Website are the information disclosure media appointed by the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Company, all information should be prevail on the above mentioned media,
investors are advice to pay attention on investment risks.
The profit distribution plan that deliberated and approved by the Board is:
based on total stock issue of 1,008,950,570, distributed 12.00 Yuan (tax included)
bonus in cash for every 10-share hold by all shareholders, 0 shares bonus issued
(tax included) and no capitalizing of common reserves carried out.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Contents
Section I Important Notice, Contents and Paraphrase ................................................................. 2
Section II Company Profile and Main Finnaical Indexes ............................................................. 6
Section III Summary of Company Business ................................................................................ 10
Section IV Discussion and Analysis of Operation ........................................................................ 13
Section V Important Events .......................................................................................................... 27
Section VI Changes in shares and particular about shareholders............................................... 40
Section VII Preferred Stock……………………………………………………………………….45
Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 46
Section IX Corporate Governance ................................................................................................. 54
Section X Corporate Bond .............................................................................................................. 60
Section XI Financial Report ............................................................................................................ 61
Section XII Documents Available for Reference ......................................................................... 192
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Paraphrase
Items Refers to Contents
Company, The Company, Weifu High-technology Refers to Weifu High-Technology Group Co., Ltd.
Weifu Group Refers to Wuxi Weifu Group Co., Ltd.
Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Robert Bosch, Robert Bosch Company Refers to Robert Bosch Co., Ltd., ROBERT BOSCH GMBH
Bosch Automobile Diesel, Bosch Diesel System Refers to Bosch Automobile Diesel System Co., Ltd.
Weifu Automotive Diesel Refers to Wuxi Weifu Automotive Diesel System Co., Ltd.
Weifu Leader Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
Weifu Jinning Refers to Nanjing Weifu Jinning Co., Ltd.
Weifu Chang’an Refers to Wuxi Weifu Chang’an Co., Ltd.
Weifu Mashan Refers to Weifu Mashan Pump Glib Co., Ltd.
Weifu ITM Refers to Wuxi Weifu ITM Supercharging Technique Co., Ltd.
Weifu Tianli Refers to Ningbo Weifu Tianli Supercharging Technique Co., Ltd.
Weifu Schmidt Refers to Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.
Weifu International Trade Refers to Wuxi Weifu International Trade Co. Ltd.
Weifu Autocam Refers to Wuxi Weifu-Autocam Fine Machinery Co. Ltd.
Weifu Environment Refers to Wuxi Weifu Environment Catalyst Co., Ltd.
Kunming Xitong Refers to Kunming Xitong Machinery Co., Ltd.
Weifu Tianshi Refers to Anhui Weifu Tianshi Machinery Co., Ltd.
Weifu Precision Machinery Refers to Weifu Precision Machinery Manufacturing Co., Ltd.
Zhonglian Electronic Refers to Zhonglian Automobile Electronic Co., Ltd.
Taiji Industrial Refers to Wuxi Taiji Industrial Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SZ Stock Exchange Refers to Shenzhen Stock Exchange
Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.
Jiangsu Gongzheng Refers to
(Special Ordinary Partnership)
The reporting period Refers to From 1 Jan. 2017 to 31 Dec. 2017
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section II Company Profile and Main Finnaical Indexes
I. Company information
Short form of the stock Weifu High- Tech, 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
WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
applicable)
Short form of foreign name of the
WFHT
Company (if applicable)
Legal representative Chen Xuejun
Registrations add. No.5, Huashan Road, New District, Wuxi City
Code for registrations add
Offices add. No.5, Huashan Road, New District, Wuxi City
Codes for office add.
Company’s Internet Web Site http://www.weifu.com.cn
E-mail Web @ weifu.com.cn
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Weixing Yan Guohong
Contact add. No.5, Huashan Road, New District, Wuxi City No.5, Huashan Road, New District, Wuxi City
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times; China Securities Journal; Hong Kong Commercial Daily
Website for annual report publish appointed by CSRC http://www.cninfo.com.cn
Preparation place for annual report Office of the Board of Directors
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
IV. Registration changes of the Company
Organization code 91320200250456967N
Changes of main business since listing (if
No change
applicable)
The Company’s controlling shareholder was Weifu Group before 2009.The
controlling shareholder changed to Industry Group from 31st May 2009 because
Previous changes for controlling shareholders Industry Group merged Weifu Group in 2009.Becasue both Weifu Group and
(if applicable) Industry Group were wholly state-owned companies of Wuxi State-owned Assets
Supervision & Administration Commission of State Council, which as actual
controller had no changes.
V. Other relevant information
CPA engaged by the Company
Name of CPA Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (Special Ordinary Partnership)
10/F, No.5 Building, Jiakaicheng Fortune Center, Jingrong 3 rd Street, Taihu Xincheng, Binghu District,
Offices add. for CPA
Wuxi, Jiangsu Province
Signing Accountants Bo Lingjing, Meng Yin
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
2017 2016 Changes over last year 2015
Operating income (RMB) 9,017,280,159.80 6,422,700,399.27 40.40% 5,741,643,746.42
Net profit attributable to shareholders of
2,571,339,490.04 1,672,224,317.05 53.77% 1,515,388,285.71
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 2,322,218,596.99 1,435,963,836.76 61.72% 1,232,371,453.62
non-recurring gains and losses(RMB)
Net cash flow arising from operating
957,697,901.07 527,344,364.04 81.61% 542,045,770.17
activities(RMB)
Basic earnings per share (RMB/Share) 2.55 1.66 53.61% 1.49
Diluted earnings per share (RMB/Share) 2.55 1.66 53.61% 1.49
Weighted average ROE 18.52% 13.53% 4.99% 13.32%
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Changes over end of last
End of 2017 End of 2016 End of 2015
year
Total assets (RMB) 20,231,006,224.36 17,263,771,897.78 17.19% 15,704,093,069.04
Net assets attributable to shareholder of
14,835,673,669.75 12,927,344,292.47 14.76% 11,783,228,273.39
listed company (RMB)
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
1st Q 2nd Q 3rd Q 4th Q
Operating income 2,457,239,285.84 2,270,886,313.18 1,832,997,683.30 2,456,156,877.48
Net profit attributable to
645,645,422.01 680,276,607.55 527,771,783.49 717,645,676.99
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
574,207,149.77 634,057,139.04 481,368,893.14 632,585,415.04
after deducting non-recurring gains
and losses
Net cash flow arising from
92,118,223.65 260,283,017.87 103,261,454.18 502,035,205.37
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
In RMB
Item 2017 2016 2015 Note
Gains/losses from the disposal of non-current asset (including
-3,233,320.26 -6,229,604.16 -8,835,206.68
the write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
48,162,140.65 43,963,942.28 142,227,027.11
national standards, which are closely relevant to enterprise’s
business)
Profit and loss of assets delegation on others’ investment or
221,705,034.02 205,047,032.68 162,047,876.71
management
Held transaction financial asset, gains/losses of changes of
fair values from transaction financial liabilities, and
investment gains from disposal of transaction financial asset,
24,625,516.88 31,650,057.18 102,044,890.13
transaction financial liabilities and financial asset available
for sales, exclude the effective hedging business relevant with
normal operations of the Company
Switch back of provision for depreciation of account
1,756,052.60 2,338,453.69 4,097,243.96
receivable which was singly taken depreciation test
Other non-operating income and expenditure except for the
4,479,807.85 4,481,317.09 -1,235.46
aforementioned items
Relocation expenses -57,116.41 -68,257,168.60
Less: Impact on income tax 43,481,221.93 42,191,376.78 49,378,731.32
Impact on minority shareholders’ equity (post-tax) 4,893,116.76 2,742,225.28 927,863.76
Total 249,120,893.05 236,260,480.29 283,016,832.09 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
(i) Main business of the Company
1. The Company belongs to auto parts industry, and its main business products include diesel fuel injection system
products, exhaust after-treatment system products and air management system products.
2. Main uses of the Company's products
(1) The diesel fuel injection system products are widely used in different power diesel engines supporting all types
of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only makes
products matching with the main engines used at home but also exports some products to the Americas, Southeast
Asia, and the Middle East. The products meet the needs of national emission standards.
(2) The auto exhaust after-treatment system products: mainly support the major manufacturers of automobile,
motorcycle and general machinery at home which meet the national emission standards.
(3) The intake system products (supercharger): matches with most of the domestic small-bore diesel engine plants
and some six-cylinder diesel engine manufacturers, and meet the needs of the light and heavy commercial
vehicles and some passenger cars, and meets the national emission standards.
3. Business model of the Company
The Company follows the operating philosophy of making competitive products, creating famous brands, striving
for first choices, and creating value for the users, implements the business model that parent company unifies the
management and subsidiaries decentralize the production. Namely, the group company is responsible for making
strategic development planning and operation targets, and making the unified management, instruction and
assessment for the finance, significant personnel management, core raw materials, quality control, and technology
of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which
makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the Company’s main business and business model have no significant changes.
(ii) Development stage and periodic characteristics of the industry the Company involves and the Company's
industry position during the reporting period
The Company belongs to the industry of auto parts, which is closely related to macro-economic situations, auto
industry policies and market demands. We always kept pace with the upgrading of national motor vehicle
emission standards over the years, and strive for the combination of self-innovation and international cooperation
with strategic disposition and promoted the stable development for three major systems business. The Company
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
has grown into one of key domestic enterprises for core auto (power engineering) parts after more than 60 years of
development, the existing products of fuel injection system has hold the leading position in China, the auto
exhaust after-treatment system products have taken the market quickly and we have come into the leading
enterprise domestically since the self-owned brand takes more and more market shares; moreover, the intake
system products also have a certain market position in China. Presently, 80% of the products have matched with
the electronic control system and with electronically controlled achieved, which still in the leading position for
self-owned brand.
With transformation & upgrading of the automobile industry, development of the diversified in automotive fuel as
well as the requirement of energy-saving & emission-reduction, the auto driving force based on the internal
combustion engine industry needs mutual supports and promotion with the new energy technology in the future
(For quite a long time, the internal combustion engine, especially in field of large passenger transport, big freight
and large-scale agriculture etc. still have broad market demand in way of internal combustion engine or
independent drive or hybrid power). Therefore, we will try to adapt to the market demands, research and develop
direction of new technology in overall planning, actively promoted the adjustment for products structures,
accelerate the cultivation of new business growth points, and improve competition ability for further innovation.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major change
Fixed assets No major change
Intangible assets No major change
Construction in progress No major change
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
The Company is a high technology enterprise with a number of patented technologies. For years, rewarded as
National Enterprise Technical Center, Post-doctor Scientific Research Station, Jiangsu Provincial Engineering and
Technology Research Center, Industrialization Base of National Hi-Tech Research and Development
Achievement, the Company has taken the research and development on the three major sections of Fuel Injection
System, Automobile Exhaust After Treatment System and Air Intake System as the top priority, has actively
worked on technology upgrading and innovation, made research and development on the forefront industries of
new energy and new technology, taken active steps to make a layout for future business, all of which have made
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
the Company take the leading position in industry domestically with distinct technology advantages.
1. Set a long-term strategic goal and build a vision for enterprise development. The Company has a huge emphasis
on the long-term development strategy, given a positive response to the national new energy and intelligent
netlink strategy, mapped out the research and development of the new technologies in terms of new energy
automobile power and intelligent netlink. At present, the Company has initially formed a business layout in which
the major business of power engineering integrating internal combustion engine three systems, precision
manufacturing and other automobile components are considered as all in one, and the intelligent engineering and
core business environment engineering as two wings. By establishing the group strategic development and
planning commission, the Company has also built a vision of enterprise development at different dimensions,
helping the Company to upgrade and transform its core products business and to form a much more competitive
automobile components industry chain.
2. Strengthen the management on manufacturing quality and enhance the quality control ability. In terms of
manufacturing management, the Company has been working on the process quality index qualification
management and process management. Based on the WPS(WEIFU production System)and manufacturing
information platform with WEIFU characteristics, the Company has made reforms in the aspects of production
system structure, staffs and organization, operation mode as well as market supply and demand relationship,
striving for reducing cost, increasing production efficiency and enhancing the product quality as well as product
delivery capability.
3. Integrate the resources and realize the integration of informatization and industrialization. In order to
implement the “Made in China 2025” plan and realize the integration of informatization and industrialization, the
Company has established a high-efficient data center with high speed, stable and reliable network environment,
successfully built a ERP platform and get value chain, realize the integration of finance and business, making the
information and resources fully shared. The construction of management accounting system will be continued to
improve and the application level of manufacturing information will be increased as well.
4. Build core talents system and maintain long-term competitive strength. The Company has attached great
importance to the construction of core talents system for years. At present, the Company has established a
comparatively comprehensive human resource management platform, built career development channels for
employees, established the medium and long term special incentives and initiated major strategic development
and innovation projects, carried out employee inclusive incentives, so as to lay a solid basis for the development
of high qualified core talents. Core competitiveness of the Company has no major changes in the Period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section IV Discussion and Analysis of the Operation
1. Introduction
(I) General introduction
In 2017, the macro economic situation in our country is better than expected, auto market shows a steady growth
trend in production and marketing in the whole year. According to the numbers from CAAM: in 2017, the whole
national has a production and sales of vehicle amounts of 29.02 million and 28.88 million respectively, a y-o-y
growth 3.19% and 3.04%,of which the growth of passenger cars slowed down obviously, production and sales of
passenger cars have 24.81 million and 24.72 million respectively with y-o-y growth of 1.58% and 1.40%; growth
of commercial vehicle is much more than expected with 4.21 million produced in the whole year and 4.16 million
sales, a 13.81% and 13.95% growth on a y-o-y basis.
The Company firmly grasps the market opportunity, three business of the Company are advanced side by side,
and the economic indicators are beyond expectations in all. The fuel injection system has obvious growth with its
production and sales of common rail pump break to 2 million sets in total, more than 80% goes up from a year
earlier; VE pump continue to dominate in non-road T3 market. The exhaust after-treatment system business
increase steadily. The supercharger in intake system business goes rapidly in total with almost 50% up from a year
earlier and further promotion is also achieved by parts manufacturing business.
During the Period, the Company achieved operation revenue of 9.017 billion Yuan with a y-o-y growth of 40.40%;
total profit amounting to 2.83 billion Yuan, a 55.64% growth on a y-o-y basis; total assets amounting to 20.231
billion Yuan, a 17.19% up from a year earlier; and the equity attributable to owners of parent company amounting
to14.836 billion Yuan, a 14.76% growth on a y-o-y basis.
(II) Works implemented
1. Customer demand oriented, seized market opportunity to achieved more sales
Insist on the market strategy as “Customer demand oriented, and creating value for customer”, consolidate the
existing market positively, strengthening market segmentation and achieved more operation revenue and
promoted market shares;
2. Adapt to the new situation, pay more attention and promoted the technological innovation for competitive
strength improvement
Seized the development trend in the industry, based on the technical advantage of three systems, focus on the
research of technical innovation for internal combustion power products with high efficiency, energy saving and
emission reduction concerned, pay more attention and promoted the technical innovation on internal combustion
and new technology, speed up the layout in new energy and intelligent network technology, improving the
future’s core competitiveness of the Company in an all-round way;
3. Improve risk management, guarantee operation safety and enhance the operating efficiency
Improved the management and control mechanism in line with the regulations, optimized organization structure,
established excellent operation management system and guarantee the compliance of mechanism procedures.
Making full use of the support of information system technology, maintain a safety in operation and develop
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
steadily, and improve operation efficiency;
4. Push forward the lean production, improving competitiveness of the enterprise
Promoting lean manufacturing capacity effectively, continues to optimized the FMS (Flexible Manufacturing
System) and enterprise production system, guarantee the product cost, quality and delivery ability as well as the
improvement of stock, strengthening the ability of enterprise resource allocation, and achieved a upgrading in
product’s quality and production efficiency;
5. Optimized the talent selection mechanism, building an excellent talents team
Push forward the talent strategy, improve mechanism of selection and incentive guarantee mechanism, attracting
high quality talents, established long effective mechanism, and stimulate the vitality of human resources, building
an excellent expert team and technical personnel team with good quality, rich in innovation and which has the
ability to adapt to the needs of the development in new period.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Operation”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2017
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total operation revenue 9,017,280,159.80 100% 6,422,700,399.27 100% 40.40%
According to industries
Automobile parts 8,535,599,504.73 94.66% 6,043,223,608.00 94.09% 41.24%
Other business 481,680,655.07 5.34% 379,476,791.27 5.91% 26.93%
According to products
Automobile fuel injection system 5,588,110,745.38 61.97% 3,614,457,127.38 56.28% 54.60%
Intake system 380,600,452.78 4.22% 256,544,008.85 3.99% 48.36%
Automotive post processing
2,566,888,306.57 28.47% 2,172,222,471.77 33.82% 18.17%
system
Other business 481,680,655.07 5.34% 379,476,791.27 5.91% 26.93%
According to region
Domestic sales 8,698,826,555.01 96.47% 6,169,779,041.07 96.06% 40.99%
Foreign sales 318,453,604.79 3.53% 252,921,358.20 3.94% 25.91%
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(2) The industries, products, or regions accounting for over 10% of the company’s operating income or
operating profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross
Operating revenue Operating cost of operating of operating cost of gross profit
profit ratio
revenue y-o-y y-o-y ratio y-o-y
According to industries
Automobile parts 8,535,599,504.73 6,420,982,285.26 24.77% 41.24% 39.98% 0.68%
According to products
Automobile fuel
5,588,110,745.38 3,883,364,430.91 30.51% 54.60% 51.22% 1.55%
injection system
Intake system 380,600,452.78 285,481,587.81 24.99% 48.36% 44.83% 1.82%
Automotive post
2,566,888,306.57 2,252,136,266.54 12.26% 18.17% 23.62% -3.87%
processing system
According to region
Domestic sales 8,698,826,555.01 6,115,724,462.61 29.69% 40.99% 41.08% -0.04%
Foreign sales 318,453,604.79 305,257,822.65 4.14% 25.91% 21.11% 3.80%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries Item Unit 2017 2016 Increase/decrease y-o-y
Sales volume In 10 thousand units 266 166 60.24%
Fuel injection
Output In 10 thousand units 262 176 48.86%
system—multiple-piston pump
Storage In 10 thousand units 16 20 -20.00%
Sales volume In 10 thousand sets 227 205 10.73%
Fuel injection system—injector Output In 10 thousand sets 209 203 2.96%
Storage In 10 thousand sets 16 34 -52.94%
Sales volume In 10 thousand pieces 293 317 -7.57%
After-treatment system—purifier Output In 10 thousand pieces 286 350 -18.29%
Storage In 10 thousand pieces 78 85 -8.24%
Sales volume In 10 thousand units 65 43 51.16%
Intake system—turbocharger Output In 10 thousand units 68 47 44.68%
Storage In 10 thousand units 13 10 30.00%
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
(1) Fuel injection system- multi-cylinder pumps have a greater growth benefited from the increase of
commercial vehicle, the heavy truck in particular, which making the demands on automotive common-rail high
pressure fuel pump increased;
(2) Air intake system-superchargers business has a sound development momentum, mainly because closely seized
the market demand and makes more market shares with stable growth;
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries and products
In RMB
2017
Increase/decrease
Industries Item Ratio in Ratio in
Amount Amount y-o-y
operation cost operation cost
Automobile parts Direct material 5,014,924,816.81 78.10% 3,550,614,388.81 77.41% 41.24%
Automobile parts Labor cost 548,188,077.87 8.54% 402,808,864.39 8.78% 36.09%
Automobile parts Depreciation 165,645,016.82 2.58% 147,968,909.11 3.23% 11.95%
Varieties of
Automobile parts 692,224,373.76 10.78% 485,568,180.29 10.59% 42.56%
consumption
In RMB
2017
Increase/decrease
Products Item Ratio in Ratio in
Amount Amount y-o-y
operation cost operation cost
Fuel injection system Direct material 2,661,656,663.54 68.54% 1,675,874,517.95 65.26% 58.82%
Fuel injection system Labor cost 459,976,070.97 11.84% 322,019,029.97 12.54% 42.84%
Fuel injection system Depreciation 134,028,364.58 3.45% 124,639,398.58 4.85% 7.53%
Varieties of
Fuel injection system 627,703,331.82 16.16% 445,447,332.60 17.35% 40.92%
consumption
Intake system Direct material 235,640,433.48 82.54% 158,681,800.62 80.50% 48.50%
Intake system Labor cost 23,813,534.44 8.34% 16,853,237.53 8.55% 41.30%
Intake system Depreciation 13,761,987.24 4.82% 11,497,121.82 5.83% 19.70%
Varieties of
Intake system 12,265,632.65 4.30% 10,078,253.26 5.11% 21.70%
consumption
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
After-treatment
Direct material 2,094,875,783.60 93.02% 1,716,058,070.24 94.19% 22.07%
system
After-treatment
Labor cost 88,220,371.79 3.92% 63,936,596.89 3.51% 37.98%
system
After-treatment
Depreciation 17,854,665.00 0.79% 11,832,388.71 0.65% 50.90%
system
After-treatment Varieties of
51,185,446.15 2.27% 30,042,594.43 1.65% 70.38%
system consumption
(6) Whether the changes in the scope of consolidation in Reporting Period
√Yes □No
①Weifu Tianshi cancellation in 2017, the profit and cash flow from beginning of the year to cancellation date
reckoned into consolidate statement;
②Kunming Xitong cancellation in 2017, the profit and cash flow from beginning of the year to cancellation date
reckoned into consolidate statement
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 4,573,388,610.81
Proportion in total annual sales volume for top five clients 50.72%
Ratio of the related sales in total annual sales from top five clients 36.23%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Bosch Diesel System 3,266,539,117.64 36.23%
2 Client II 487,979,396.96 5.41%
3 Client III 342,291,314.57 3.80%
4 Client IV 268,049,583.35 2.97%
5 Client V 208,529,198.29 2.31%
Total -- 4,573,388,610.81 50.72%
Other situation of main clients
√Applicable □Not applicable
The Company has association with Bosch Diesel System, and directors, supervisors, senior executives, core
technicians and actual controller of the Company have no equity in main suppliers directly or indirectly.
Main suppliers of the Company
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Total purchase amount from top five suppliers (RMB) 1,841,212,418.92
Proportion in total annual purchase amount for top five suppliers 29.72%
Ratio of the related purchase in total annual purchase amount from top five suppliers 24.07%
Information of top five suppliers of the Company
Serial Suppliers Purchasing amount (RMB) Ratio in annual total purchasing amount
1 Weifu Environment 1,131,818,717.21 18.27%
2 Bosch Automobile Diesel 200,508,313.30 3.24%
3 Supplier 1 196,292,441.12 3.17%
4 ROBERT BOSCH GMBH 158,733,424.37 2.56%
5 Supplier 3 153,859,522.92 2.48%
Total -- 1,841,212,418.92 29.72%
Other notes of main suppliers of the Company
√Applicable □Not applicable
The Company has association with Weifu Environment, Bosch Automobile Diesel and ROBERT BOSCH GMBH ,
and directors, supervisors, senior executives, core technicians and actual controller of the Company have no
equity in main suppliers directly or indirectly.
3. Expenses
In RMB
2017 2016 Increase/decrease y-o-y Note of major changes
Sales expense 194,854,780.37 213,304,364.89 -8.65%
Management expense 930,808,787.61 797,426,199.46 16.73%
Financial expense 7,316,996.79 -9,109,442.62
4. R&D investment
√Applicable □ Not applicable
During the reporting period, the Company focused on the enterprise technology innovation strategy and planning,
adhered to the technological innovation, accelerated the research and development of key projects and products,
put forth effort to improve the industrialization of new products, and enhanced new power for the enterprises
development. The Company has made breakthroughs in the field of technology innovation and filled in the
domestic blank in the research and development of non-road high power fuel injection system products, matched
with domestic large mainframe; the core technologies of China VI Emission Standard have been considered as the
top priority during the research and development of after-treatment products and the Company has successfully
accomplished the development of the products of China VI Emission Standard for petrol and diesel-driven
automobiles; Regarding the air intake system, the Company has speed up the research and development on
variable section superchargers, full taken part in the development of projects related to diesel mainframe of China
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
VI Emission Standard; meanwhile, the Company has mapped out the research and development on the new
technologies in terms of new energy automobile power and intelligent netlink. The success implementation of all
the above projects has ensured the leading position of the Company in the automobile power system core
components industry.
R&D investment of the Company
2017 2016 Change ratio
Number of R&D (people) 1,132 1,083 4.52%
Ratio of number of R&D 20.92% 20.79% 0.13%
R&D investment (Yuan) 391,315,234.75 319,386,108.20 22.52%
R&D investment accounted for R&D income 4.34% 4.97% -0.63%
R&D investment capitalization (Yuan) 0.00 0.00
Capitalization R&D investment accounted for R&D investment 0.00% 0.00%
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2017 2016 Y-o-y changes
Subtotal of cash in-flow from operation activity 7,864,444,717.03 5,815,453,641.50 35.23%
Subtotal of cash out-flow from operation activity 6,906,746,815.96 5,288,109,277.46 30.61%
Net cash flow from operation activity 957,697,901.07 527,344,364.04 81.61%
Subtotal of cash in-flow from investment activity 10,609,070,063.25 11,296,028,290.03 -6.08%
Subtotal of cash out-flow from investment activity 11,859,361,718.71 10,330,540,145.28 14.80%
Net cash flow from investment activity -1,250,291,655.46 965,488,144.75 -229.50%
Subtotal of cash in-flow from financing activity 254,520,000.00 323,359,165.37 -21.29%
Subtotal of cash out-flow from financing activity 799,122,114.37 1,062,028,582.97 -24.76%
Net cash flow from financing activity -544,602,114.37 -738,669,417.60
Net increased amount of cash and cash equivalent -846,784,323.89 754,908,479.26 -212.17%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Net cash flow from operation activity increased mainly due to the increase of product sales;
Net cash flow from investment activity decreased mainly due to more bank financial products purchased in the
period;
Cash out-flow from financing activity decreased mainly due to the increase of dividend payment in the period and
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
more cash in-flow from bank loans
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√Applicable □Not applicable
Mainly due to the investment, and specific influencing factors found more in supplementary information of cash
flow statement carried in Annotation of the Report.
III. Analysis of the non-main business
√Applicable □Not applicable
In RMB
Ratio in
Amount Note Whether be sustainable
total profit
The company joint ventures Bosch
Income mainly form the two joint
Automobile Diesel and Zhonglian
ventures the Company holding
Investment income 1,853,638,285.20 65.49% Electronic production and operation
(Bosch Automobile Diesel and
was stability, so the investment can
Zhonglian Electronic)
be sustained stable.
Asset impairment 119,219,730.37 4.21%
Non-operating income 11,968,167.87 0.42%
Non-operating
5,773,593.62 0.20%
expense
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2017 End of 2016
Ratio
Ratio in Ratio in Notes of major changes
Amount Amount changes
total assets total assets
Monetary fund 3,118,709,412.83 15.42% 3,969,674,068.56 22.99% -7.57%
Amount at period-end has major
Account growth over that of period-begin
1,995,577,830.90 9.86% 1,324,703,543.17 7.67% 2.19%
receivable mainly due to the increase of
product sales
Inventory 1,478,939,040.70 7.31% 1,349,444,535.25 7.82% -0.51%
Investment
23,544,830.78 0.12% 25,113,472.54 0.15% -0.03%
property
Long-term equity 4,140,064,825.58 20.46% 3,421,030,760.78 19.82% 0.64%
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
investment
Fix assets 2,584,872,628.54 12.78% 2,447,840,035.34 14.18% -1.40%
Construction in
100,345,461.28 0.50% 90,621,102.20 0.52% -0.02%
process
Amount at period-end has major
growth over that of period-begin
Short-term loans 243,000,000.00 1.20% 150,000,000.00 0.87% 0.33% mainly because the bank loans
from subordinate controlling
subsidiary increased
Long-term loans 45,000,000.00 0.22% 60,000,000.00 0.35% -0.13%
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Changes of fair Devaluation Amount of
Amount at the Accumulative
value of purchase Amount of sale Amount at
Items beginning changes of fair value
gains/losses in withdrawing in the in the period period-end
period reckoned into equity
this period in the period period
Financial assets
3. Available for
sale financial 361,847,700.00 -43,364,100.00 87,169,455.01 53,868,894.08 266,376,600.00
assets
Subtotal of
361,847,700.00 -43,364,100.00 87,169,455.01 53,868,894.08 266,376,600.00
financial assets
Above total 361,847,700.00 -43,364,100.00 87,169,455.01 53,868,894.08 266,376,600.00
Financial
0.00 0.00
liabilities
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
3. The assets rights restricted till end of the period
Book value at
Item Restriction reason
period-end
Monetary fund 359,224.68 Cash deposit paid for LC
Monetary fund 89,264,465.36 Cash deposit paid for bank acceptance
Monetary funds 646,368.57 Court freeze
Notes receivable 583,421,990.27 Notes pledge for bank acceptance
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of
Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as “Shenzhen
Intermediate People's Court”), the property with the value of 217 million Yuan under the
Financial assets
222,862,426.44 name of the Company and other seven respondents and the third party Shenzhen Hejun
availablefor sale
Chuangye Holdings Co., Ltd. was frozen. As of the end of the reporting period, 4.71 million
shares of Miracle Logistics and 11,739,102 shares of SDEC held by the Company were
frozen.
Total 896,554,475.32 --
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√Applicable □Not applicable
In RMB
Book Changes
Cumulat Profit
Account value at in fair Book
Va Short ive fair Current and loss
Code of Initial ing the value of Current value at Account
riety of form of value purchas in the Capital
securitie investm measure beginni the sales the end ing
securitie securitie changes e Reporti Source
s ent cost ment ng of current amount of the subject
s s in amount ng
model the profit period
equity Period
period and loss
Financia
Domesti
Measure l assets
c and 199,208 293,694 -54,621, 49,516, 53,868, -54,085, 186,966 Own
600841 SDEC d by fair availabl
foreign ,000.00 ,000.00 000.00 537.51 894.08 500.00 ,000.00 funds
value e for
stocks
sales
Domesti Miracle 69,331, Measure 68,153, 11,256,9 37,652, 11,492,4 79,410, Financia Own
c and Logistic 500.00 d by fair 700.00 00.00 917.50 00.00 600.00 l assets funds
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
foreign s value availabl
stocks e for
sales
268,539 361,847 -43,364, 87,169, 53,868, -42,593, 266,376
Total -- 0.00 -- --
,500.00 ,700.00 100.00 455.01 894.08 100.00 ,600.00
Disclosure date of 24 March 2012
securities investment
4 June 2013
approval of the Board
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
No application of raised proceeds in the period
VI. Significant asset and equity sales
1. Significant asset sales
□ Applicable √ Not applicable
No significant assets being sold in the Period
2. Significant equity sales
□ Applicable √ Not applicable
VII. Analysis of the main stock-jointly and controlling subsidiary
√ Applicable □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
In RMB
Comp
Main Register Operating
any Type Total assets Net Assets Operating profit Net profit
business capital revenue
name
After-tre
Weifu
Subsid atment 502,596,3
Lead 3,370,603,223.66 1,554,027,730.42 2,545,737,100.66 102,888,183.12 102,430,580.66
iary system 00.00
er
products
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Fuel
Weifu
Subsid injection 346,286,8
Jinnin 1,141,799,407.17 842,508,962.94 639,266,713.42 136,428,176.64 123,846,080.79
iary system 25.80
g
products
Bosch Joint-s Fuel
Autom tock injection USD241,0 10,890,178,880.7 15,389,748,441.4
6,940,524,196.59 4,055,440,489.18 3,421,160,042.39
obile compa system 00,000.00 2
Diesel ny products
Zhong Joint-s
Gasoline
lian tock 600,620,0
system 5,356,964,249.30 4,788,144,637.04 21,430,344.10 1,780,585,522.56 1,777,156,110.72
Electr compa 00.00
products
onic ny
Subsidiary obtained and disposed in the Period
√Applicable □ Not applicable
Impact on operation business
Enterprise Way to obtained and disposed
and performance as a whole
Weifu Diesel System Consolidation by merger on 1 October 2017 by the Company No impact
Cancellation in 2017, the profit and cash flow from beginning of the year
Weifu Tianshi No impact
to cancellation date reckoned into consolidate statement
Cancellation in 2017, the profit and cash flow from beginning of the year
Kunming Xitong No impact
to cancellation date reckoned into consolidate statement
Statement on main controlling and stock-jointly company
1. The automobile market, the heavy truck in particular has strong demand since the year, the Copany and its
stock-jointly enterprise seized the opportunity closely, and product of fuel injection system have better growth in
operation revenue and profit from a year earlier;
2. Profit from the after-treatment system products are manly impact by the follow factors including intense market
competition, sales price dropping, the cost increased for soaring raw materials and change of the products
structure (diesel vehicle emission upgrade);
VIII. The structured subject controlled by the Company
□ Applicable √ Not applicable
IX. Prospects for future development
(I) Industry competition pattern and development trend
The Company belongs to the industry of auto parts, which is closely related to macro-economic situations, auto
industry policies and market demands. We always kept pace with the upgrading of national motor vehicle
emission standards over the years, and strive for the combination of self-innovation and international cooperation
with strategic disposition and promoted the stable development for three major systems business. The Company
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
has grown into one of key domestic enterprises for core auto (power engineering) parts after more than 60 years of
development, the existing products of fuel injection system has hold the leading position in China, the auto
exhaust after-treatment system products have taken the market quickly and we have come into the leading
enterprise domestically since the self-owned brand takes more and more market shares; moreover, the intake
system products also have a certain market position in China. Presently, 80% of the products have matched with
the electronic control system and with electronically controlled achieved, which still in the leading position for
self-owned brand.
With transformation & upgrading of the automobile industry, development of the diversified in automotive fuel as
well as the requirement of energy-saving & emission-reduction, the auto driving force based on the internal
combustion engine industry needs mutual supports and promotion with the new energy technology in the future
(For quite a long time, the internal combustion engine, especially in field of large passenger transport, big freight
and large-scale agriculture etc. still have broad market demand in way of internal combustion engine or
independent drive or hybrid power). Therefore, we will try to adapt to the market demands, research and develop
direction of new technology in overall planning, actively promoted the adjustment for products structures,
accelerate the cultivation of new business growth points, and improve competition ability for further innovation.
(II)Development strategy of the Company
In order to further optimize and upgrade the fuel injection system products, after treatment system products and
engine air intake system (supercharger) in compliance with national energy-saving and emission reduction
regulations, the Company will fully improve its system integration (service) capability; give a positive response to
national new energy and intelligent netlink strategy, make a layout for new energy automobile drive technology,
improve hydrogen fuel battery technology as well as the research and development capability of intelligent netlink
technology, and create a new pattern of development.
(III)Business plan for 2018
1. The Company will seize the market opportunity, with customer demand oriented, strengthen the market
segment and make efforts to achieve steady growth of operation business.
2. Based on the advantages in system technology, the Company will enhance the research and development ability
of cultivation new technology, accelerate the industrial distribution of new energy business, and comprehensively
enhance the core competitiveness of the Company in the future while maintain its existing technology strengths.
3. The Company will improve its flexible manufacturing system, strengthen the quality and security management,
improve lean management, enhance the factor resource allocation capability and increase the operation efficiency.
4. The Company will enhance the factor resource allocation capability, optimize and comb the process, establish
excellent operation management system, optimize organization structure, standardize the construction of
information security system and improve system network security level of the Company;
5. The Company will improve its human resource planning system and strengthen the talents strategy
development capability. The Company will attract high quality talents with incentive mechanism and deepen the
innovative incentives, comprehensively improve the talents selection and development mechanism and trigger the
vigor of human resource with incentive mechanism to attract high-qualified talents and further innovative
incentives.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
6. The Company will strengthen the risk control as well as the audit and legal management, continue to improve
the compliance management system and maintain steady development of the Company.
(IV) Possible risks
1. The slowdown in the domestic macroeconomic growth and step out of industry preferential policies will
influence the growth of the automobile market.
2. The continuous rise in labor costs, the increase in logistics costs and the fluctuations in raw material prices will
increase the company's cost pressures.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time Way Type Basic situation index of investigation
2017-05-19 Spot research Institution The scene of the shareholders’ general meeting
2017-07-25 Spot research Institution The scene of the shareholders’ general meeting
The Company answered 243 questions for investors online through
2017-01-01-
Written inquiry Individual the investor relations interactive
2017-12-31
platform(http://irm.p5w.net/dqhd/sichuan/)
2017-01-01- Basic condition of the Company, and views on market,
Telephone communication Individual
2017-12-31 communication with investors by telephone more than 400
Reception (times)
Number of hospitality
Number of individual reception
Number of other reception
Disclosed, released or let out major
N
undisclosed information (Y/N)
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
√ Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations in Article of Association
2. In reporting period, the Company implemented the profit distribution for year of 2016, based on the total share
capital 1,008,950,570 shares, distributed 6.00 Yuan (tax included) bonus in cash for every 10 shares held, no
capitalization from public reserves. The plan was completed in July 2017. The implementation of the Company's
cash dividend policy is in compliance with the provisions of \"Articles of Association\", relevant decision-making
procedures are complete and fully listen to the views of independent directors and minority shareholders and
maintain the legitimate rights and interests of minority shareholders.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Yes
Well-defined and clearly dividend standards and proportion (Y/N): Yes
Completed relevant decision-making process and mechanism (Y/N): Yes
Independent directors perform duties completely and play a proper role (Y/N): Yes
Minority shareholders have opportunity to express opinions and demands totally and their legal rights are
Yes
fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Not applicable
changed (Y/N):
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
The profit distribution plan for 2017: based on total share capital of 1,008,950,570 shares at end of 2017,
distribute cash dividend of RMB 12.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The profit distribution plan for 2016: based on total share capital of 1,008,950,570 shares at end of 2016,
distribute cash dividend of RMB 6.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan has been implemented completely in July 2017.
The profit distribution plan for 2015: based on total share capital of 1,008,950,570 shares at end of 2015,
distribute cash dividend of RMB 5.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan has been implemented completely in July 2016.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Net profit attributable to Ratio in net profit
common stock attributable to common Amount for cash Proportion for
Year for Amount for cash bonus
shareholders of listed stock shareholders of bonus by other cash bonus by
bonus shares (tax included)
company in consolidation listed company contained ways other ways
statement for bonus year in consolidation statement
2017 1,210,740,684.00 2,571,339,490.04 47.09% 0.00 0.00%
2016 605,370,342.00 1,672,224,317.05 36.20% 0.00 0.00%
2015 504,475,285.00 1,515,388,285.71 33.29% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share)
Dividends for every 10-share (RMB) (Tax included) 12.00
Shares added for every 10-share base (Share)
Equity base of distribution plan (Share) 1,008,950,570
Total cash dividend(RMB) (Tax included) 1,210,740,684.00
Distributable profits (RMB) 8,360,801,089.38
Ratio of cash dividend in total profit distribution 100%
Cash dividend policy:
Other
Detail explanation on profit distribution or capitalization from capital public reserve
Pursuit to the Standard Unqualified Auditor’s Report for year of 2017 issued by Jiangsu Gongzheng, the profit available for
distribution of the parent company for year of 2017 are as: net profit of the parent company for year of 2017amount as
3,001,267,900 Yuan, plus retained profit at beginning of the year 5,525,644,100 Yuan and the retained profit 439,259,400 Yuan
from consolidation by merger with wholly-own subsidiary Weifu Automobile Diesel, deducted dividend for year of 2016:
605,370,300 Yuan, the distributable profit at end of the period amounted as 8,360,801,000 Yuan.
Profit distribution plan for year of 2017: on base of the total 1,008,950,570 shares at end of 2017, distributed 12.00 Yuan (tax
included) in cash for each 10 shares, no bonus, and no transfer of reserve to common shares. The remaining retained profit carried
forward to next year. Profits allocate for year of 2017 amounting to 1,210,740,700 Yuan.
III. Implementation of commitment
1. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by
the end of reporting period
□ Applicable √ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
No condition of the above mentioned occurred in the Period
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√Applicable □ Not applicable
Change of major accounting policy in the period found more in the Note V-(29) carried in Section XI in Annual Report 2017
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√Applicable □Not applicable
①Weifu Tianshi cancellation in 2017, the profit and cash flow from beginning of the year to cancellation date
reckoned into consolidate statement;
②Kunming Xitong cancellation in 2017, the profit and cash flow from beginning of the year to cancellation date
reckoned into consolidate statement
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Jiangsu Gongzheng Tianye Certified Public
Name of domestic accounting firm
Accountants Co., Ltd. (Special Ordinary Partnership)
Remuneration for domestic accounting firm (in 10 thousand Yuan)
Continuous life of auditing service for domestic accounting firm
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Name of domestic CPA Bo Lingjing, Meng Yin
Continuous life of auditing service for domestic accounting firm
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
Being deliberated in Annual Shareholders General Meeting of 2016, Jiangsu Gongzheng was appointed as audit
accounting firm for internal control of the Company for year of 2015. In the Period, auditing charge for internal
control amounting to 0.22 million Yuan
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
√Applicable □Not applicable
Trial Judgment
Amount Whether
Results and Implementat
Basic Situation of Litigation Related Formed Progress of Litigation Disclosure
Effects of ion of Disclosur
(Arbitration) to the Accrued (Arbitration) Date
Litigation Litigation e Index
Case Liabiliti
(Arbitration) (Arbitration)
(Yuan) es
On March 6, 2017, the By the company’s application
company received the civil for reconsideration, Shenzhen
ruling No.(2016)Y03MC2490 Intermediate People's Court
This (Announc
and No.(2016) Y03MC2492 deemed the total assets that
litigation ement
from Shenzhen Intermediate Cinda Company applied for
will not No.:
People's Court about the preservation to be RMB
affect the 2017-002
dispute case that the plaintiff 217,027,697.23. The total Not yet
company’s March 08, )
applicant China Cinda Asset 21,703 N value of 15.3 million shares of implemente
daily 2017 published
Management Co., Ltd. SDEC Stock and 4.71 million d
operating on
Shenzhen Branch (hereinafter shares of Tianqi Stock held by
activities for www.cni
referred to as “Cinda the company has exceeded the
the time nfo.com.c
Company”) appealed the total assets that Cinda
being n
respondent Weifu High Company applied for
Technology and other seven preservation, therefore,
respondents and the 3,560,898 shares of SDEC
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
shareholders of the third party Stock held by the company
Hejun Company damaged the was unfrozen. Up to the end
interests of corporate of the reporting period, the
creditors, which adopted the company’s frozen assets were
mandatory measures to freeze as follows: 4.71 million shares
the assets with value of RMB of Miracles Logistics held by
217 million under the name of the company and its fruits,
the Company and other seven and 11,739,102 shares of
respondents and Hejun SDEC Stock held by the
Company. Freeze 4.71 million company and its fruits. At
shares of Tianqi Stock and present, this litigation is in the
15.3 million shares of SDEC first instance (the first trial
Stock held by the company. held on 24 Sept. 2017, and
follow trial will wait for
notice by the court).
The Company has applied to
Futian People's Court of
Shenzhen for compulsory
liquidation with Hejun (Announc
Company. The civil ruling There are no ement
The Company has applied to paper (Yue (0304) QS[2017] impact on No.:
Futian People's Court of No. 5 ） made by Shenzhen daily Relevant 6 2017-023
Shenzhen for compulsory 3,300 N Futian District People’s Court operation works are in December )
liquidation with Hejun ruled that Hejun Company activities of process 2017 published
Company should be made compulsory the on
liquidation. The Company Company www.cni
will actively cooperate with nfo.com.c
the court to work on the n
liquidation to protect its
legitimate rights and interests.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
√ Applicable □ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
On 20 June 2014, the Company held the 2013 AGM which deliberated \"the Company’s incentive fund
implementation methods\", the Company has fully implemented it during the reporting period, completed the
medium and long term special incentive allocation for core talents, farthest mobilized the enthusiasm and
creativity of employees, stabilized the employees, attracted the high-quality talents, and enhance the cohesive
force in enterprise.
XVI. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Trading
Whether Availabl
Related Clearin
Type Conte Proport limit Date
transaction over the g form e Index of
of nt of Related ion in approve of
Related Relatio Pricing amount for
related related transacti similar approved similar disclosur
party nship principle (in 10 related
transac transac on price transact d (in 10 disclos
thousand limited or transact market e
tion tion ions thousand ure
Yuan) ion
not (Y/N) price
Yuan)
Procur Accordi
Weifu Associa Fair Notice
ted ement Market ng to Market 2017-0
Precision Goods market 4,306.91 0.70% 4,000 Y No:2017
compan of price the price 4-18
Machinery y pricing -008
goods contract
Associa
ted
compan
y, Procur Accordi
Bosch controll Fair Notice
ing ement Market ng to Market 2017-0
Diesel Goods market 20,050.83 3.24% 17,000 Y No:2017
subsidia of price the price 4-18
System ry of pricing -008
German goods contract
Bosch
Compa
ny
Joint Procur Accordi
Weifu Fair Notice
venture ement Market ng to Market 2017-0
Environme of Goods market 113,181.87 18.28% 150,000 N No:2017
Weifu of price the price 4-18
nt pricing -008
Leader goods contract
Second
largest Procur Accordi
ROBERT Fair Notice
shareho ement Market ng to Market 2017-0
BOSCH lder of Goods market 15,873.34 2.56% 12,000 Y No:2017
the of price the price 4-18
GMBH pricing -008
Compa goods contract
ny
Goods Accordi
Weifu Associa Sales Fair Notice
ted and Market ng to Market 2017-0
Precision of market 337.79 0.04% 300 Y No:2017
compan labor price the price 4-18
Machinery y goods pricing -008
forces contract
Bosch Associa Sales Goods Fair Accordi Notice
ted Market Market 2017-0
Diesel of and market 326,653.91 36.23% 300,000 Y ng to No:2017
compan price price 4-18
System y, goods labor pricing the -008
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
controll forces contract
ing
subsidia
ry of
German
Bosch
Compa
ny
Joint Goods Accordi
Weifu Sales Fair Notice
venture and Market ng to Market 2017-0
Environme of of market 4,621.63 0.51% 8,000 N No:2017
Weifu labor price the price 4-18
nt goods pricing -008
Leader forces contract
Second
largest Accordi
ROBERT Sales Fair Notice
shareho Market ng to Market 2017-0
BOSCH lder of of Goods market 252.86 0.03% 120 Y No:2017
the price the price 4-18
GMBH goods pricing -008
Compa contract
ny
Associa
ted
compan Techni
y, cal Accordi
Bosch controll Fair Notice
ing commi Market ng to Market 2017-0
Diesel Other market 129.47 150 N No:2017
subsidia ssion price the price 4-18
System ry of pricing -008
German payabl contract
Bosch e etc.
Compa
ny
Associa
ted
compan
y, Purcha Accordi
Bosch controll Fair
ing sing Market ng to Market
Diesel Other market 260.78 Y
subsidia fixed price the price
System ry of pricing
German assets contract
Bosch
Compa
ny
Techni
Second
largest cal Accordi
ROBERT Fair Notice
shareho commi Market ng to Market 2017-0
BOSCH lder of Other market 794.52 800 N No:2017
the ssion price the price 4-18
GMBH pricing -008
Compa paid contract
ny
etc.
Joint Accordi
Weifu Leasin Fair Notice
venture Market ng to Market 2017-0
Environme of Other gcharg market 238.86 250 N No.:201
Weifu price the price 4-18
nt e pricing 7-008
Leader contract
Total -- -- 486,702.77 -- 492,620 -- -- -- -- --
Detail of sales return with major Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
amount involved
Being deliberated and approved by AGM of 2016, total related transaction for year of 2017
predicted as 4926.2 million Yuan, actually 4867.0278 million Yuan occurred in the Period, the
Report the actual implementation of related transaction classified according to types are as: 1. it estimated that purchasing goods and
the daily related transactions which labor service from related party in 2017 will up to 1830 million Yuan, while 1534.1295 million
were projected about their total Yuan occurred actually in the Period; 2. it estimated that sales of goods and labor service to
amount by types during the related party in 2017 will up to 3084.2 million Yuan, while 3318.6619 million Yuan actually
reporting period(if applicable) occurred for explosive demand growth in commercial vehicles, heavy truck in particular in the
period; 3. it estimated that other related transactions with related party for year of 2017 will up to
12 million Yuan while 14.2363 million Yuan actually occurred.
Reasons for major differences
between trading price and market Not applicable
reference price
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable √ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Related Actual date of
Name of the Actual e for
Announcemen Guarantee happening (Date Guarantee Implemen
Company guarantee Guarantee type related
t disclosure limit of signing term ted (Y/N)
guaranteed limit party
date agreement)
(Y/N)
Guarantee of the Company and the subsidiaries
Guarante
Actual date of
Related Actual e for
Name of the Guarante happening (Date Guarante Implemen
Announcement guarantee Guarantee type related
Company guaranteed e limit of signing e term ted (Y/N)
disclosure date limit party
agreement)
(Y/N)
Ningbo Tianli
Joint liability
Turbocharging 2016-10-27 6,000 2016-11-11 5,500 5 N N
guaranty
Technology Co., Ltd.
Total amount of approving guarantee for subsidiaries Total amount of actual occurred guarantee for
0 5,500
in report period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for subsidiaries Total balance of actual guarantee for subsidiaries
6,000 5,500
at the end of reporting period (B3) at the end of reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Related Guarante
Actual date of
Announce Actual e for
Name of the Company Guarantee happening (Date Guarantee Guarantee Implemen
ment guarantee related
guaranteed limit of signing type term ted (Y/N)
disclosure limit party
agreement)
date (Y/N)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving guarantee in report period Total amount of actual occurred guarantee in
0 5,500
(A1+B1+C1) report period (A2+B2+C2)
Total amount of approved guarantee at the end of Total balance of actual guarantee at the end of
6,000 5,500
report period (A3+B3+C3) report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the net
0.37%
assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
related parties(D)
The debts guarantee amount provided for the guaranteed parties
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F)
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Explanations on possibly bearing joint and several liquidating
Not applicable
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures
Not applicable
(if applicable)
Explanation on guarantee with composite way
Nil
(2)Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Entrust others to cash asset management
(1) Trust financing
√ Applicable □ Not applicable
Trust financing during the period
In 10 thousand Yuan
Specific type Sources of funds Amount occurred Undue balance Overdue amount
Financing products Free funds 275,000 185,000
Financial products of securities firms Free funds 25,000 5,000
Trust financial products Free funds 150,718 84,790
Other type Free funds 167,400 127,150
Total 618,118 401,940
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
In 10 thousand Yuan
Amou Summ
nt of ary of
reserv Wheth the
Actual Wheth
Capita Antici e for er items
Truste Refere Actual collect er has
l Criteri pated devalu appro and
e Source nce gains/l ed entrust
Trustee Amou Start End invest a for incom ation ved by relate
institut Type of annual osses gains/l financ
type nt date date ment fixing e (if of legal d
ion r funds rate of in osses e plan
purpos reward applic withdr proced query
name return period in in the
e able) awing ure index
period future
(if (Y/N) (if
applic applic
able) able)
Non-gu Refere Collec
arantee Financ nce ted
d 753,00 Owne 2016- 2018- ial annual 11,831 7,404. accord
Bank Bank 4.1%- Y Y
floatin 0 d fund 01-11 06-30 produc rate of .95 42 ing to
5.4%
g ts return the
income by the contra
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
contra ct
ct
Refere
Collec
Non-gu Collec nce
ted
arantee tive annual
Securit Securit accord
d Owne 2016- 2018- assets rate of
ies ies 42,000 4.45% 919.9 718.36 ing to Y Y
floatin d fund 05-17 01-18 manag return
trader trader -5% the
g ement by the
contra
income plan contra
ct
ct
Refere
Collec
Non-gu nce
ted
arantee Collec annual
accord
d 278,70 Owne 2016- 2019- tion rate of 10,620 6,509.
Trust Trust 4.7%- ing to Y Y
floatin 0 d fund 01-07 07-06 trust return .43 81
7.5% the
g plan by the
contra
income contra
ct
ct
Refere
Collec
Non-gu nce
Fixed ted
arantee annual
Other( Other( incom accord
d 257,24 Owne 2016- 2019- rate of 15,066 7,537.
Fund Fund e fund 4.8%- ing to Y Y
floatin 0 d fund 02-02 05-09 return .59 92
etc.) etc.) produc 7.8% the
g by the
ts contra
income contra
ct
ct
1,330, 38,438 22,170
Total -- -- -- -- -- -- -- -- -- --
940 .87 .51
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
XVIII. Social responsibility
1. Performance of social responsibility
As for the “Social Responsibility Report 2017” of the Company, found more in the Juchao Website (www.cninfo.com.cn), the
information disclosure website appointed by Shenzhen Stock Exchange.
2. Precise poverty alleviation social responsibility
There are no precise poverty alleviation carried out in the period and no follow plan either
3. Environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
No
XIX. Explanation on other significant events
□Applicable √ Not applicable
There are no explanation on other significant events in the period
XX. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
1. Proposed application for listing in the national middle and small enterprises stock transfer system by the
controlling subsidiary Weifu Tianli
On 25 October 2016, the 8th board of directors of the Company held the 9th meeting to consider and approve the
proposal relating to proposed application for listing in the national middle and small enterprises stock transfer
system by the controlling subsidiary Weifu Tianli Pressure Technology Co., Ltd. on 30 December 2016, Weifu
Tianli was served with the notice of acceptance from the National Middle and Small Enterprise Stock Transfer
System Company Limited (GP2016120120). The relevant announcements (No.: 2016-020, 2016-023 and
2017-001) were published on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao
Information Website (http://www.cninfo.com.cn). At the current stage, this matter is in the progress of
consideration and approval.
2. Wholly-owned subsidiary consolidation by merger
On 25 July 2017, the first extraordinary shareholders general meeting of 2017 held for deliberated and approved
the proposal of a w holly-owned subsidiary consolidation by merger. According to the operation development
requirments, and furhter optimized the management structure and governance structure, to simplify internal
accounting, reducing management costs, integrated business resources and improve operation efficiency, the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Company consolidated Wuxi Weifu Automative Diesel System Co., Ltd. by merger. The relevant announcements
(No.: 2017-017 and No.: 2017-020) were published on China Securities Journal, Securities Times, Hong Kong
Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn). Relevant works still in progress.
3. On 31 May 2016, the 8th board of directors of the Company held the 7th meeting to consider and approve the
proposal relating to proposed investment in establishment of industrial acquisition funds by a wholly-owned
subsidiary of the Company. In order to accelerate industrial upgrade and development progress, reserve merger &
acquisition projects, improve its comprehensive strength and realize its development strategy, the Company
entered into initial intention of cooperation with Ping’an Securities, pursuant to which, Weifu Auto Diesel, a
wholly-owned subsidiary of the Company, intended to cooperate with Ping’an Ronghui (a subsidiary of Ping’an
Caizhi which is a wholly-owned subsidiary of Ping’an Securities) to invest in establishing industrial acquisition
funds. The relevant announcements (No.: 2016-013 and 2016-015) were published on China Securities, Securities
Times, Hong Kong Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn).The
Company has decided to terminate this item for the primary reasons as below: firstly China Securities Regulatory
Commission has carried out regulation and normalization on broker private equity subsidiary and Ping An Rong
Hui, initially planned one of funds management organizations, was unable to continue the set of funds. Secondly,
on July 25th 2017, the Company has opened the first temporary shareholders meeting of 2017, during which, a
proposal regarding the Company to absorb and merger wholly-funded subsidiaries has been approved. During the
reporting period, the Company has accomplished the merger of Weifu Petrol and diesel item. Because of this, the
8th session of board of directors of the Company has deliberated and adopted the Proposal to Terminate
Prospective Investment and Set Industry Merger Funds on the 16th session of meeting. See the related
announcements (No.2018-005 and No. 2018-011) at China Securities Journal, Securities Times, Hong Kong
Commercial Daily and cninfo (http://www.cninfo.com.cn).
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliz
New
Bonus ation of Subto
Amount Proportion shares Others Amount Proportion
shares public tal
issued
reserve
I. Restricted shares 78,577 0.01% 78,577 0.01%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 78,577 0.01% 78,577 0.01%
Including: Domestic legal
person’s shares
Domestic natural
78,577 0.01% 78,577 0.01%
person’s shares
4. Foreign shares
II. Unrestricted shares 1,008,871,993 99.99% 1,008,871,993 99.99%
1. RMB Ordinary shares 836,491,993 82.90% 836,491,993 82.90%
2. Domestically listed
172,380,000 17.09% 172,380,000 17.09%
foreign shares
3. Overseas listed foreign
shares
4. Others
III. Total shares 1,008,950,570 100.00% 1,008,950,570 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference Total preference
Total common stock
shareholders with shareholders with voting
Total common stock shareholders at end of
voting rights rights recovered at end
shareholders in 62,600 last month before 63,190 0
recovered at end of last month before
reporting period-end annual report
of reporting period annual report disclosed
disclosed
(if applicable) (if applicable)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Amount of Number of share
Proporti Amount of
pledged/frozen
Nature of on of shareholders Changes in restricted
Full name of Shareholders un-restricted
shareholder shares at the end of report period shares
State of
held shares held Amount
report period held share
Wuxi Industry Development State-owne
20.22% 204,059,398 0 204,059,398
Group Co., Ltd d corporate
Foreign
ROBERT BOSCH GMBH 14.16% 142,841,400 0 142,841,400
corporate
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Hong Kong Securities Clearing Foreign
1.93% 19,498,342 17,888,360 19,498,342
Company corporate
BBH BOS S/A FIDELITY FD - Foreign
1.46% 14,759,494 2,377,215 14,759,494
CHINA FOCUS FD corporate
Central Huijin Assets State-owne
1.27% 12,811,200 0 12,811,200
Management Co., Ltd. d corporate
Kangjian Assets Management Foreign
1.11% 11,150,800 -4,189,092 11,150,800
Company –Client’s fund corporate
RBC EMERGING MARKETS Foreign
0.80% 8,038,335 -1,587,929 8,038,335
EQUITY FUND corporate
Huatai Securities Co., Ltd. Other 0.75% 7,559,720 4,780,748 7,559,720
State-owne
AHCOF Xingye Co., Ltd. 0.65% 6,541,348 6,541,348 6,541,348
d corporate
Ping An Property & Casualty
Insurance Company of China,
Other 0.61% 6,106,625 6,106,625 6,106,625
Ltd. – traditional- common
insurance products
Among the top ten shareholders, there has no associated relationship between Wuxi
Industry Development Croup Co., Ltd. and other shareholders, the first largest
Explanation on associated relationship among
shareholder of the Company; and they do not belong to the consistent actionist
the aforesaid shareholders
regulated by the Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict Type of shares
Shareholders’ name shares held at
Type Amount
Period-end
Wuxi Industry Development Group Co., Ltd 204,059,398 RMB common shares 204,059,398
RMB common shares 115,260,600
ROBERT BOSCH GMBH 142,841,400 Domestically listed foreign
27,580,800
shares
Hong Kong Securities Clearing Company 19,498,342 RMB common shares 19,498,342
Domestically listed foreign
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 14,759,494 14,759,494
shares
Central Huijin Assets Management Co., Ltd. 12,811,200 RMB common shares 12,811,200
Kangjian Assets Management Company –Client’s fund 11,150,800 RMB common shares 11,150,800
Domestically listed foreign
RBC EMERGING MARKETS EQUITY FUND 8,038,335 8,038,335
shares
Huatai Securities Co., Ltd. 7,559,720 RMB common shares 7,559,720
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
AHCOF Xingye Co., Ltd. 6,541,348 RMB common shares 6,541,348
Ping An Property & Casualty Insurance Company of
6,106,625 RMB common shares 6,106,625
China, Ltd. – traditional- common insurance products
Among the top ten shareholders, there has no associated relationship
between Wuxi Industry Development Croup Co., Ltd. and other
Expiation on associated relationship or consistent actors
shareholders, the first largest shareholder of the Company; and they do
within the top 10 un-restrict shareholders and between top
not belong to the consistent actionist regulated by the Management
10 un-restrict shareholders and top 10 shareholders
Measure of Information Disclosure on Change of Shareholding for
Listed Company.
Explanation on top 10 shareholders involving margin
Not applicable
business (if applicable)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Legal
person/perso Date of Organization
Controlling shareholders Main operation business
n in charge foundation code
of the unit
Authorizing the state-owned assets operation within
a certain areas, investment management of
Wuxi Industry Development Jiang 9132020013600 significant project, investment and development of
1995-10-05
Group Co., Ltd. Guoxiong 26543 manufacturing and services and venture capital in
high-tech achievement, entrust enterprise and
management etc.
Equity of other domestic/oversea listed
company control by controlling Substantial shareholder of the Company—Industry Group is the controlling
shareholder as well as stock-joint in report shareholder of Wuxi Taiji Industry Co., Ltd. (stock code: 600667)
period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller of the Company
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Legal person/person in Date of Organization
Actual controlling shareholders Main operation business
charge of the unit foundation code
State-owned Assets Supervision &
Administration Commission of State-owned Assets
～ ～
Wuxi Municipality of Jiangsu Administration
Province
Equity of domestic/oversea listed
company control by actual Not applicable
controller in report period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
State-owned Assets Supervision & Administration
Commission of Wuxi Municipality of Jiangsu Province
100%
Wuxi Industry Development Croup Co., Ltd.
20.22%
Weifu High-Technology Group Co., Ltd.
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □Not applicable
Legal
Corporate Register
rep./person in Dated founded Main business or management activity
shareholders capital
charge of unit
Development, manufacture and sales of automotive equipment and
engine equipment; engaged in electro-technical, electronic
Heiko Carrie, EUR technology, machinery manufacturing and optical system as well as
ROBERT
Bettina 1886-11-15 1,200 produce iron, metal and plastic products and similar commodity. The
BOSCH GMBH
Holzwarth million company engaged in varies trading business concerned with its
business scope and established relevant company concerned with its
business scope.
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amoun Amoun
t of t of
Shares Shares
shares shares Other
held at held at
Start dated of End date of increas decreas change
Title Working status Sex Age period-b period-
Name office term office term ed in ed in s
egin end
this this (share)
(Share) (Share)
period period
(Share) (Share)
Chen
Chairman Currently in office M 50 2012-03-07 2018-05-27 34,753 34,753
Xuejun
Rudolf Vice
Currently in office M 60 2012-03-07 2018-05-27
Maier Chairman
Wang Vice
Chairman, Currently in office M 51 2012-03-07 2018-05-27 20,781 20,781
Xiaodong GM
Deputy
General
Ou Manager and Currently in office M 51 2012-03-07 2018-05-27
financing 10,000 10,000
Jianbin Charger
Director Currently in office M 51 2012-05-23 2018-05-27
Zhang
Director Currently in office M 54 2015-05-28 2018-05-27
Xiaogeng
Chen
Director Currently in office M 56 2012-03-07 2018-05-27
Yudong
Hua
Director Currently in office M 53 2012-03-07 2018-05-27
Wanrong
Independent
Xing Min Currently in office F 63 2012-03-07 2018-05-27
Director
Lou Independent
Currently in office M 54 2015-05-28 2018-05-27
Diming Director
Jin Independent
Currently in office M 67 2015-05-28 2018-05-27
Zhangluo Director
Xu Independent
Currently in office M 54 2015-05-28 2018-05-27
Xiaofang Director
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Chairman of
Shi the
Currently in office M 55 2012-03-07 2018-05-27 12,673 12,673
Xingyuan Supervisory
Committee
Zhang
Supervisor Currently in office M 53 2015-05-28 2018-05-27 500
Zhenting
Liu Jinjun Supervisor Currently in office M 42 2012-03-07 2018-05-27
Miao
Deputy GM Currently in office M 54 2003-04-16 2018-05-27 10,000 10,000
Yuming
Xu
Deputy GM Currently in office M 46 2012-03-07 2018-05-27 13,000 13,000
Yunfeng
Zhou Secretary of
Currently in office M 54 2005-06-09 2018-05-27 3,565 3,565
Weixing the Board
Total -- -- -- -- -- -- 105,272 0 0 105,272
II. Changes of directors, supervisors and senior executives
□Applicable √Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
Mr. Chen Xuejun, was born in May 1967, a university background and a senior economist. He currently serves as
Chairman of the Company, party secretary of the Company and director of the majority shareholder of the
Company – Industrial Group. He has served as Director and Party branch secretary of the Company mining and
supply department, Director of Party Committee Office. He has served as chairman of supervisory committee of
the Company, deputy chairman and General Manager of the Company.
Mr. Rudolf Maier, was born in October 1957, a German citizenship with a doctor degree. He currently serves as
chairman of the BOSCH Automotive Diesel Systems Co., Ltd.; previously he was executive deputy president of
technology research of German Bosch Diesel System, chairman of commercial vehicle dept. diesel injection
system, chairman of German Bosch Diesel System China Region, the vice Chairman of BOSCH Automotive
Diesel Systems Co., Ltd. and director of the Company.
Mr. Wang Xiaodong, was born in November 1966, a university graduate, MBA and senior engineer. He currently
serves as vice chairman and GM of the Company, and previously served as Division Chief of Products
Development Department of the Company, Deputy GM of Bosch Automobile Diesel and supervisor of the
Company.
Mr. Ou Jianbin, born in June 1966, a senior college graduated and an accountant. Currently he serves as director
and standing deputy GM as well as chief of the financial of the Company; previously served as Assistant Minister
and Deputy Minister of Financial Department of Weifu Company, Director and deputy GM of subsidiary Weifu
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Jinning, Deputy GM and GM of subsidiary Weifu Leader and supervisor of the Company.
Mr. Zhang Xiaogeng, born in March 1963, college degree, senior economist. He currently serves as director of the
Company, deputy president of majority shareholder – Industry Group; and previously served as clerk of the
production system office at commission for restructuring of Wuxi City, deputy director of enterprise reform
department of Wuxi City, director of comprehensive institution department of Wuxi City, director of development
and planning department (policy and regulation division) of SASAC of Wuxi City and deputy GM of Wuxi
Industry Asset Management Co., Ltd
Mr. Chen Yudong, was born in September 1961, an America citizenship and a Doctor. He currently serves as
director of the Company and president of Bosch (China) Investment Ltd; he previously served as Chief engineer
of Greater China, Business Director and GM of Business department of China of Delphi Automotive Parts Group,
senior deputy president of petrol system dept. of German Bosch and executive deputy president of Bosch (China)
Investment Ltd.
Ms. Hua Wanrong, born in September 1964, graduated from college, a senior accountant. Currently she serves as
director of the Company, chief of the financial management dept. of majority shareholder Industry Group, and
director of Taiji Industrial. Previously she served as deputy director of administrative resources division of
State-owned Assets Supervision and Administration Bureau of Wuxi City, director of tax policy and regulations
division and director of state-owned assets division of Wuxi Municipal Bureau of Finance, director of property
management department and director of development and planning department of State-owned Assets Supervision
and Administration Commission of Wuxi City, director of investment and development department of major
shareholder – Industry Group.
Mr. Xing Min, born in January 1954, graduate from University, professorate senior engineer. He currently serves
as independent director of the Company, vice chairman and secretary-general of China Internal Combustion
Engine Industry Association (CICEIA), Independent Director of Hunan Tyen Machinery Co., Ltd., and Independent
Director of First Tractor; he previously served as vice chief of Bureau of Retired Veteran Cadres of Machinery Dept,,
secretary of Party Committee of Administration Division and deputy director, director of Labor Division,
secretary of Party Committee of China National Heavy Machinery Corporation (CHMC), GM and secretary of
Party Committee and consultant of China National Machine Tools Corporation (CNMTC).
Lou Diming, male, born in July 1963, doctor, professor. He currently serves as independent director of the
Company, professor and doctoral supervisor of Tongji University, director of Automobile Engine Design Institute
of College of Automotive Studies, Tongji University, vice president of SICES, director of Chinese Society for
Internal Combustion Engines, vice chairman of small and medium power diesel branch and vice chairman of oils
and clean fuel branch, committee member of Expert & Technical Committee of National Technical Committee
177 on IC engines Standardization Administration of China, committee member of Expert Committee of China
Internal Combustion Engine Industry Association, independent director of Shanghai Diesel Engine Co., Ltd.,
independent director of Kunming Yunnei Power Co., Ltd.. he previously served as deputy director and general
party branch secretary in School of Mechanical Engineering of Shanghai Railway Institute, deputy secretary of
branch Party committee of School of Mechanical Engineering and general party branch secretary in School of
Locomotive Vehicle Engineering and executive vice president of Institute of Rail Transit of Tongji University,
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
and secretary of the second joint committee of Tongji University.
Jin Zhangluo, male, born in August 1950, college degree, certified public accountant, senior accountant. Currently
he serves as independent director of the Company, an independent director of Jiangsu Meishang Ecology
Landscape Co., Ltd., independent director of Jiangsu Liba Enterprise Joint-Stock Co., Ltd., independent director
of Suzhou Taihu Electric Advanced Material Co, Ltd., independent director of Jiangsu Penyao Environmental
Protection and Technology Co., Ltd. He previously served as financial administrator of Jiangsu Jintan Diesel
Engine Factory, deputy chief, chief, and chief accountant of finance department of Wuxi Power Factory,
department manager, deputy director, and routine deputy director of Jiangsu Gongzheng Tianye CPA.
Xu Xiaofang, male, born in March 1963, graduate, a lawyer. Now he serves as independent director of the
Company, lawyer in Kunlun (Shenzhen) Law Firm, arbitrator of the Shenzhen Arbitration Commission and Beihai
International Arbitration Institute, director of Shenzhen League Star Technology Co., Ltd; previously he served as
part-time lawyer in Beihai Economic Law Firm, staff in China Chamber of International Commerce Beihai
Branch, part-time lawyer of Guangdong Yuanjian Law Firm, and staff of legal affairs in CEIEC and lawyer of
Guangdong Bohe Law Firm.
Mr. Shi Xingyuan, was born in May 1962, a postgraduate, Master of Commerce and Industry, senior engineer.
Currently he serves as Chairman of the Supervisory Committee of the Company, deputy secretary of party
committee and chairman of labor union of the Company; previously he served as director of the management office of
the Company, director of GM office and assistant GM, deputy GM and director of the Company.
Mr. Zhang Zhenting, born in December 1964, university graduated, senior engineer. Currently he serves as
supervisor of the Company and GM of Weifu Jinning; previously served as served as the engineer in charge, chief
engineer, director of development department, general manager assistant, deputy chief engineer, vice general
manager in Weifu Jinning.
Mr. Liu Jinjun, born in September 1975, graduates from University, a MSIE and engineer. Currently serves as
supervisor of the Company and director of Strategy & Marketing department; previously served as Manager of
H&R administrative and technology sales manager of WFDS, HR director of WFHT.
Mr. Miao Yuming, born in April 1963, a university background, MBA and senior engineer. Currently he serves as
deputy GM of the Company, deputy GM of Bosch Automobile Diesel; previously served as director of sales
department and assistant GM in the Company.
Mr. Xu Yunfeng, born in November 1971, graduate from University, a Master and engineer. Currently serves as
deputy GM of the Company and previously served as vice director of product research institute of Technology
Center of the Company, Manager, assistant GM and GM of sales dept. of Weifu Automobile Diesel.
Mr. Zhou Weixing, born in January 1963, graduate from University, a senior engineer. Currently serves as
secretary of the Board of the Company and previously served as representative of security affairs and director of
security office.
Post-holding in shareholder’s unit
√ Applicable □ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Position in End date Received remuneration from
Start dated of
Name Name of shareholder’s unit of office
shareholder’s unit n office term shareholder’s unit (Y/N)
term
Bosch Automobile Diesel
Rudolf Maier Chairman Yes
System Co., Ltd
Executive vice president
Rudolf Maier ROBERT BOSCH GMBH 2011-01-01 Yes
of Diesel System
Zhang Wuxi Industry Development
Vice president 2008-04-01 Yes
Xiaogeng Group Co., Ltd
Wuxi Industry Development Director of financial
Hua Wanrong 2011-12-01 Yes
Group Co., Ltd management dept.
Chen Yudong Bosch (China) Investment Ltd. President 2011-01-01 Yes
Bosch Automobile Diesel
Miao Yuming Deputy GM 2012-03-01 Yes
System Co., Ltd
Post-holding in other unit
√ Applicable □ Not applicable
Received
Start dated of End date of
Name Name of other units Position in other unit n remuneration from
office term office term
other unit (Y/N)
Vice chairman and
Xing Min CICEIA 2008-08-01 Y
secretary
Xing Min Hunan Tyen Machinery Co., Ltd. Independent director 2015-07-17 2018-07-16 Y
Xing Min First Tractor Co., Ltd. Independent director 2015-10-29 2018-10-18 Y
Lou Diming Tongji University Professor, doctoral tutor 2000-04-15 Y
Lou Diming Shanghai Diesel Engine Co., Ltd. Independent director 2015-05-20 2018-05-19 Y
Lou Diming Kunming Yunnei Power Co., Ltd. Independent director 2015-12-28 2018-12-27 Y
Jiangsu Meishang Ecological
Jin Zhangluo Independent director 2011-09-28 2017-09-27 Y
Landscape Co., Ltd.
Jin Zhangluo Jiangsu Liba Industrial Co., Ltd. Independent director 2014-02-15 2017-02-14 Y
Suzhou Taihu Electrical New
Jin Zhangluo Independent director 2016-02-04 2019-02-03 Y
Materials Co., Ltd.
Jiangsu Pengyao Environmental
Jin Zhangluo Independent director 2014-02-01 Y
Protection Technologies Co., Ltd.
Oriental Kunlun (Shenzhen) Law
Xu Xiaofang Lawyer 2004-09-01 Y
Firm
Shenzhen League Star Technology
Xu Xiaofang Director 2012-08-01 Y
Co., Ltd
Explanation on
post-holding in The aforesaid are the independent directors of the Company
other unit
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedure: the remuneration and review committee of the Board shall make proposals
according to completion status of the major annual targets, the implementation of which is subject to submission
to and approval by the Board;
2. Determination reference: remuneration of directors, supervisors and senior management who receive
remuneration from the Company is determined based on the annual operating results assessment measures of
senior management and remuneration management rules of senior management as approved at the general
meetings. Salary for independent directors of the Company is determined by general meeting which is set at RMB
25,000 per quarter (after tax), and the traveling expense occurred by them arising from attending the Company’s
board meeting, general meetings and relevant activities will be reimbursed according to the actual conditions.
3. Actual payment: remuneration of directors, supervisors and senior management who receive remuneration from
the Company comprises of basic annual pay and performance related annual salary. The basic annual pay shall be
determined based on specific positions and paid monthly, while the performance related salary is determined and
paid based on satisfaction of the various performance indicators since it is directly linked with the economic
benefits of the Company. Remuneration of independent directors will be paid on a quarterly basis.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post-holding status obtained from obtained from
the Company related party of
(before taxes) the Company
Chen Xuejun Chairman M 50 Currently in office 92 No
Rudolf Maier Vice Chairman M 60 Currently in office Yes
Wang Xiaodong Vice Chairman, GM M 51 Currently in office 84 No
Director, standing Deputy GM and
Ou Jianbin M 51 Currently in office 70 No
Chief in financial
Zhang Xiaogeng Director M 54 Currently in office Yes
Chen Yudong Director M 56 Currently in office Yes
Hua Wanrong Director F 53 Currently in office Yes
Xing Min Independent Director M 63 Currently in office 12 No
Lou Diming Independent Director M 54 Currently in office 12 No
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Jin Zhangluo Independent Director M 67 Currently in office 12 No
Xu Xiaofang Independent Director M 54 Currently in office 12 No
Chairman of the Supervisory
Shi Xingyuan M 55 Currently in office 70 No
Committee
Zhang Zhenting Supervisor M 54 Currently in office 45 No
Liu Jinjun Supervisor M 42 Currently in office 38 No
Miao Yuming Deputy GM M 54 Currently in office Yes
Xu Yunfeng Deputy GM M 46 Currently in office 70 No
Zhou Weixing Secretary of the Board M 54 Currently in office 38 No
Total -- -- -- -- 555 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) 2,421
Employee in-post of main Subsidiaries (people) 2,990
The total number of current employees (people) 5,411
The total number of current employees to receive pay (people) 5,411
Retired employee’ s expenses borne by the parent Company and
main Subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 3,251
Sales personnel
Technical personnel 1,282
Financial personnel
Administrative personnel
Total 5,411
Education background
Category of education background Numbers (people)
Master degree and above
Undergraduate 1,258
Junior college 1,239
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Other 2,705
Total 5,411
2. Remuneration Policy
In 2017, the Company continued to improve its remuneration and benefits system so as to constantly secure the
income level of its staff. Staff’s income is closely linked with the Company’s operating results. The Company also
emphasized increase or decrease of income per capita, and the system among “profit per capita, sales per capital
and production efficiency”. It implemented budget system both in inflexibility and flexibility, enhanced
performance related income linked assessment measures and proactively propelled implementation of the
incentive mechanism in a long and middle run. The Company arranged social insurance for all of its employees,
and continued to make available the complementary annuity and medical and accident commercial insurances,
managing to activate employees’ enthusiasm and innovation, retain employees, attract high quality elites and
strengthen corporate cohesiveness.
3. Training programs
In 2017, the Company further increased trainings to improve the professionalism and expertise of employees.
Throughout the year, it held in aggregate 104 internal trainings with 113 in-house trainers. Besides, it conducted
an overall dynamic management against its training courses and trainers in order to achieve constant improvement
of internal training quality. A total of about 16,000 people have received relevant trainings from the Company,
among which, internal trainings accounted for 85%. The major training subjects included development plan for
potential elites, establishment and implementation of training plan for core elites. Together with the assessment on
effectiveness of trainings, the Company managed to strengthen training management on application and sharing
plans. In addition, the Company also tried cross training among subsidiaries, and achieved cultivation and mutual
progress of special talents by use of the in-house advantageous resources and platforms.
4. Labor outsourcing
□ Applicable √ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section IX. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company earnestly implemented the Basic Internal Control Standards for
Enterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, Listing
Rules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on Main
Board, continued to improve and enhance legal person governance structure and internal control system, thus to
standardize its operation. The actual status of corporate governance in accordance with the requirements of China
Securities Regulatory Commission regulatory documents related to listing Corporation.
The company has established a series of document systems for standardized management including the “Rules
of Procedure” of three committees, \"Working Rules\", “internal control system”, \"Evaluation Management System
of Internal Control\", \"Information Disclosure Management Approach\", \"Financial Decision-making System of
Significant Investment\", \"Related Party Transaction System\", \"Inside Information and Insider Management
System\".
According to the \"Company Law\", \"Articles of Association\" and relevant laws and regulations, the company
established a relatively complete organizational control architecture system. The company’s board of directors
executes the resolution of general meeting of stockholders, takes charge of the company’s great decisions, and
take responsible for the general meeting of stockholders; the company sets up the general manager according to
law to preside over the company’s daily production and operation and management, organize and implement the
resolutions of the board of directors, and take responsible for the board of directors; the company’s board of
supervisors is the company’s supervisory body, takes responsible for behaviors of the directors and senior
management and the supervise the company’s financial affairs. The board of directors has four special committees
including the strategy committee, remuneration and appraisal committee, audit committee, and nominations
committee. The company’s general meeting of stockholders, board of directors, board of supervisors, and
management layer have clear rights and obligations, perform their own duties, effectively check and balance,
scientifically make decisions, coordinate operations, and lay a solid foundation for the company’s sustainable,
stable and healthy development.
The company’s independent directors perform their duties and faithfully and conscientiously fulfill their
obligations in strict accordance with relevant regulations of \"Articles of Association\" and the \"Independent
Director System\", and actively attend the board meetings and shareholders' meetings, understand and obtain
relevant information before meetings; carefully consider each motion, and actively participate in the discussions
and make recommendations. Seriously make independent opinions, and effectively protect the interests of the
company and shareholders, especially the minority shareholders. Independent directors have no objections on
relevant matters of the company.
The company further implements the \"Basic Norms of Enterprise Internal Control\" and its guidelines, constructs
the internal control system in the company headquarters and major subsidiaries, enhance the company's
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
management and control level, optimize the workflow, improve the internal control system, identify and control
the operational risks. Please see the detailed contents of \"2017 Annual Internal Control Evaluation Report\" on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□ Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
1. Business: the company has a complete independent research and development, procurement, production and
sales systems, the main business does not have horizontal competition with the controlling shareholders. The
business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor, personnel and
salary management; there is no mixed operation and management with the controlling shareholders. The
company’s general manager, vice general manager, financial administrator, secretary of the board, and senior
executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete, the property relations with the controlling
shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling
shareholders, the duty and authority of the company’s stockholders' meeting, board of directors, board of
supervisors and management level are clearly defined, the internal management system can operate
independently.
5. Finance: the company has set up an independent financial department, established the independent financial
accounting system and financial management system, opened the independent bank account, and paid taxes
separately according to law.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
1. Annual Shareholders’ General Meeting in the report period
Ratio of
Date of
Session of meeting Type investor Date Index of disclosure
disclosure
participation
(No.: 2017-013) published on
AGM of 2016 AGM 46.22% 2017-05-19 2017-05-20
Juchao Website(www.cninfo.com.cn)
Extraordinary
The first extraordinary (No.: 2017-020) published on
shareholders' 45.20% 2017-07-25 2017-07-26
shareholders' meeting in 2017 Juchao Website(www.cninfo.com.cn)
meeting
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and general meeting
Times of Board Times of
Times of Times of Times of Absent the Board
Name of meeting Times of attending
Board attending Board Board meeting Meeting for the
independent supposed to Board meeting sharehold
meeting meeting by entrusted second time in a
director attend in the Absence ing
Presence communication presence row (Y/N)
report period meeting
Xing Min 5 1 4 No
Lou Diming 5 1 4 No
Jin Zhangluo 5 1 4 No
Xu Xiaofang 5 1 4 No
Explanation of absent the Board Meeting for the second time in a row
Not applicable
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□ Yes √ No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
During the reporting period, the company’s independent directors have paid close attention to the company’s
operations, independently performed their duties, made special opinions on the company’s system improvement
and daily operating decisions in strict accordance with relevant laws and regulations and the provisions of
\"Articles of Association\", made independent and just opinions on the matters that need the independent directors’
opinions during the reporting period, and played the due role in improving the corporate governance mechanism,
maintaining the legitimate rights and interests of the company and all shareholders.
VI. Duty performance of the special committees under the board during the reporting period
During the reporting period, the board of directors of the special committees performed their duties as follows:
1. Two meetings of Audit committee of the Board, deliberated the followed: “Financial Result Report of 2016”,
“Annual Report of 2016 and its Summary”, “Conclusion Report of auditing for year of 2016”, “Engagement of
audit institute for financial report of 2017”, “Engagement of audit institute for internal control of the Company of
2017”, “Semi-Annual Report of 2017 and its Summary”, and “Specific Report on Raise Funds Deposit for First
Half Year of 2017 and Practical Usage” etc.;
2. One meeting of remuneration and appraisal committee of the Board, deliberate “Remuneration evaluation and
payment for senior executive of 2016”;
3. One meeting of strategy committee of the Board, deliberate “Operation target for year of 2017”
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law,
Articles of Association, and the annual operating results assessment measures of senior management and
remuneration management rules of senior management as approved at the general meetings. Assessment of
operating results of senior management comprises of annual operating results assessment and term-of-service
operating results assessment. Assessment on results and procedure was combined, and assessment results were
linked to incentives and punishment. With respect to annual operating results review, the remuneration and review
committee of the Board made comprehensive assessment on satisfaction of the annual operating targets and
determined the annual remuneration, incentives or punishment for senior management based on their review
results (which was implemented according to remuneration management rules of senior management), based on
the major annual operating targets set by the Board under required procedures and methods through establishment
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
of scientific performance indicators and assessment system and combination of scoring in terms of quantity and
review comments. During the reporting period, the Company made appropriate assessment on its senior
management under the performance indicator and assessment system, the results of which had been reflected in
the annual performance related remuneration.
Currently, the Company has not exercised any share option scheme.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
2018-04-17
evaluation report
Disclosure index of full internal control ”Self-evaluation report of internal control for 2017”, more details found in Juchao
evaluation report website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
The ratio of the total assets of units included in
the scope of evaluation accounting for the total
100.00%
assets on the company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation accounting
100.00%
for the operating income on the company's
consolidated financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
See details in “(II) Basis for evaluation See details in “(II) Basis for evaluation
of internal controls and defect of internal controls and defect
identification standards of internal identification standards of internal
controls of III Evaluation of Internal controls of III Evaluation of Internal
Qualitative criteria
Controls” in “2016 Annual Internal Controls” in “2016 Annual Internal
Control Self-Evaluation Report” Control Self-Evaluation Report”
disclosed on www.cninfo.com.cn on disclosed on www.cninfo.com.cn on
April 17, 2018. April 17, 2018.
See details in “(II) Basis for evaluation See details in “(II) Basis for evaluation
of internal controls and defect of internal controls and defect
Quantitative standard identification standards of internal identification standards of internal
controls of III Evaluation of Internal controls of III Evaluation of Internal
Controls” in “2016 Annual Internal Controls” in “2016 Annual Internal
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Control Self-Evaluation Report” Control Self-Evaluation Report”
disclosed on www.cninfo.com.cn on disclosed on www.cninfo.com.cn on
April 17, 2018. April 17, 2018.
Amount of significant defects in financial
reports
Amount of significant defects in non-financial
reports
Amount of important defects in financial
reports
Amount of important defects in non-financial
reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Audit institute considers that: according to relevant regulations and “Basic Rules of Internal Control for Enterprises”, Weifu
High-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2017.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control
2018-04-17
(full-text)
”Audit report of internal control for year of 2017”, more details found in
Index of audit report of internal control (full-text)
Juchao website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
Opinion type of auditing report of IC Standard unqualified
Whether the non-financial report had major defects No
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section X. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
No
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Section XI. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 2018-04-13
Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (Special Ordinary
Name of audit institute
Partnership)
Document number of audit report SG W[2018]NO. A366
Name of CPA Bo Lingjing, Meng Yin
Auditor’s Report
SG W[2018]NO. A366
To the Shareholders of Weifu High-Technology Group Co., Ltd.:
I. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co., Ltd.
(hereinafter referred to as Weifu High-Technology), including the consolidated and parent Company’s
balance sheet of 31 December 2017 and profit statement, and cash flow statement, and statement on changes
of shareholders’ equity for the year ended, and notes to the financial statements for the year ended.
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the
Company and of its parent company as of 31 December 2017 and its operation results and cash flows for the
year ended.
II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China.
Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the
Audit of the Financial Statements” section of the auditor’s report. We are independent of the Company in
accordance with the Certified Public Accountants of China’s Code of Ethics for Professional Accountants,
and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
opinion on these matters. The key audit matter we identified is as follows:
Revenue Recognition Principle is the key audit matter identified during auditing.
1. Matter description
In 2017, Weifu High Technology Group Co.,Ltd, has recorded RMB9,017,280,200 in operating revenue, an
increase of 40.40 percent from the year of 2016.
As one of the biggest source of profits for Weifu High Technology Group Co.,Ltd., operating revenue has a
significant effect on the general financial statement, in which there are certain of inherent risks existed for
the reason that the management manipulate the timing of recognition so as to achieve specific objectives or
anticipations. Therefore, we will take the Revenue Recognition Principle as the key auditing matter.
2.The solution to the matter in auditing
(1)The Company has tested the design and execution of key internal control related to revenue recycling so
as to confirm the validity of internal control; (2) The Company should make sure whether the recognition
condition and method of major operating revenue are compliance with the enterprise accounting principle
and whether the front phase consistent with the rear phase; it also should pay an attention to that whether the
cyclical and occasional revenue is compliance with the decided revenue recognition principle and methods;
(3) Combining with status and policies of the industry where Weifu High Technology Group Co.,Ltd. is
located, the Company should make a judgment on the rationality of fluctuation of the revenue composition;
(4) The Company should make an analysis on the revenue composition of Weifu High Technology Group
Co.,Ltd. from 2015 to 2017, and make a judgment on the rationality of fluctuation of the revenue
composition combing with the industry status and policies; (5) The Company should carry out the procedure
of account receivable and income letter of confirmation, and make a judgment on the rationality of the timing
of revenue recognition; (6) Combining with the procedure of letter of confirmation, the Company should
make a random inspection on sales contracts or orders, delivery lists, logistics bills, customs declaration,
sales invoices and other documents related to revenue to verify the authenticity of revenue; (7) Referring to
the recorded revenue before and after the Balance Sheet Date, the Company should select some samples and
check out the supportive documents such as delivery lists, customs declaration and receipt forms to make a
judgment on whether the income has been recorded at the appropriate accounting period.
IV. Other information
The management of Weifu High-Technology Co., Ltd. (the “Management”) is responsible for other
information which includes the information covered in the Company’s 2017 annual report excluding the
financial statement and our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do
not issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand
during our audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In t his regards, we have nothing to report.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the
Accounting Standards for Enterprise to secure a fair presentation, and for the design, establishment and
maintenance of the internal control necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing matters related to going concern and using the going concern
assumption unless the management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the CAS will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for audit opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our
conclusions are based on the information obtained up to the date of audit report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in the auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in the auditor’s report because of the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.
(Special Ordinary Partnership)
Chinese CPA: Bo Lingjing
(engagement partner)
Wuxi China Chinese CPA: Meng Yin
13 April 2018
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2017-12-31
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 3,118,709,412.83 3,969,674,068.56
Settlement provisions
Capital lent
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Notes receivable 1,464,256,934.83 1,279,844,777.10
Accounts receivable 1,995,577,830.90 1,324,703,543.17
Account paid in advance 97,576,197.88 74,030,486.38
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable 2,281,979.17 2,487,527.65
Dividends receivable
Other receivables 5,214,623.41 5,907,873.92
Purchase restituted finance asset
Inventories 1,478,939,040.70 1,349,444,535.25
Divided into assets held for sale
Non-current assets due within one year
Other current assets 3,887,997,290.53 1,914,225,879.67
Total current assets 12,050,553,310.25 9,920,318,691.70
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 588,142,869.00 695,235,461.00
Held-to-maturity investments
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Long-term receivables
Long-term equity investments 4,140,064,825.58 3,421,030,760.78
Investment property 23,544,830.78 25,113,472.54
Fixed assets 2,584,872,628.54 2,447,840,035.34
Construction in progress 100,345,461.28 90,621,102.20
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 340,632,143.36 347,206,518.76
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 2,969,770.81 1,753,413.10
Deferred income tax assets 203,007,622.23 210,196,714.45
Other non-current assets 195,088,675.74 102,671,641.12
Total non-current assets 8,180,452,914.11 7,343,453,206.08
Total assets 20,231,006,224.36 17,263,771,897.78
Current liabilities:
Short-term borrowings 243,000,000.00 150,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable 947,976,759.10 837,045,962.78
Accounts payable 2,570,956,205.83 1,729,250,355.93
Accounts received in advance 42,820,236.07 42,983,352.84
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 327,778,677.29 230,672,269.58
Taxes payable 93,869,690.36 62,634,922.88
Interest payable 401,928.43 437,938.27
Dividend payable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Other accounts payable 62,937,940.90 96,514,485.59
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Liability held for sale
Non-current liabilities due within one year 10,000,000.00
Other current liabilities
Total current liabilities 4,299,741,437.98 3,149,539,287.87
Non-current liabilities:
Long-term loans 45,000,000.00 60,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable 17,496,363.00 17,835,454.00
Long-term wages payable 30,448,132.88 112,815,704.51
Special accounts payable 18,265,082.11 18,265,082.11
Accrual liabilities
Deferred income 451,281,721.77 479,211,845.88
Deferred income tax liabilities 17,406,622.39 27,674,132.89
Other non-current liabilities
Total non-current liabilities 579,897,922.15 715,802,219.39
Total liabilities 4,879,639,360.13 3,865,341,507.26
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,417,841,402.89 3,417,841,402.89
Less: Inventory shares
Other comprehensive income 87,169,455.01 144,722,827.51
Reasonable reserve 2,606.93 89,005.19
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Retained profit 9,811,609,138.92 7,845,639,990.88
Total owners’ equity attributable to parent company 14,835,673,669.75 12,927,344,292.47
Minority interests 515,693,194.48 471,086,098.05
Total owners’ equity 15,351,366,864.23 13,398,430,390.52
Total liabilities and owner’s equity 20,231,006,224.36 17,263,771,897.78
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
In RMB
Item Ending balance Opening balance
Current assets:
Monetary funds 2,460,413,190.84 2,143,816,269.01
Financial assets measured by fair value and with variation
reckoned into current gains/losses
Derivative financial assets
Notes receivable 449,209,323.02 216,516,806.40
Accounts receivable 1,047,012,889.92 611,594,846.92
Account paid in advance 52,269,971.38 34,805,212.41
Interest receivable 97,627.77
Dividends receivable
Other receivables 50,174,653.16 46,349,571.47
Inventories 425,577,163.53 202,839,001.66
Assets held for sale
Non-current assets due within one year
Other current assets 3,876,370,675.52 1,945,446,935.23
Total current assets 8,361,125,495.14 5,201,368,643.10
Non-current assets:
Available-for-sale financial assets 512,202,869.00 619,295,461.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,962,522,689.49 4,591,005,651.65
Investment property
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Fixed assets 1,567,315,925.73 1,438,192,853.38
Construction in progress 29,152,398.74 36,142,328.79
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 196,726,670.75 192,448,576.72
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 114,706,976.54 96,943,564.13
Other non-current assets 80,866,308.04 31,747,194.01
Total non-current assets 7,463,493,838.29 7,005,775,629.68
Total assets 15,824,619,333.43 12,207,144,272.78
Current liabilities:
Short-term borrowings 78,000,000.00 80,000,000.00
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Derivative financial liability
Notes payable 459,762,950.78 171,760,000.00
Accounts payable 1,082,206,882.07 595,558,830.63
Accounts received in advance 12,242,442.51 732,252.09
Wage payable 216,598,203.73 119,456,739.08
Taxes payable 71,370,793.35 28,055,629.04
Interest payable 93,777.78 88,933.33
Dividend payable
Other accounts payable 9,982,668.55 14,190,407.16
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,930,257,718.77 1,009,842,791.33
Non-current liabilities:
Long-term loans
Bonds payable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 16,665,236.81 101,240,000.00
Special accounts payable
Accrual liabilities
Deferred income 407,070,636.08 432,695,399.27
Deferred income tax liabilities 15,382,844.99 25,539,322.49
Other non-current liabilities
Total non-current liabilities 439,118,717.88 559,474,721.76
Total liabilities 2,369,376,436.65 1,569,317,513.09
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,488,221,286.39 3,448,408,786.39
Less: Inventory shares
Other comprehensive income 87,169,455.01 144,722,827.51
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 8,360,801,089.38 5,525,644,079.79
Total owners’ equity 13,455,242,896.78 10,637,826,759.69
Total liabilities and owner’s equity 15,824,619,333.43 12,207,144,272.78
3. Consolidated Profit Statement
In RMB
Item 2017
I. Total operating income 9,017,280,159.80 6,422,700,399.27
Including: Operating income 9,017,280,159.80 6,422,700,399.27
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 8,086,342,833.98 6,022,388,441.21
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Including: Operating cost 6,761,729,398.36 4,884,458,125.87
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 72,413,140.48 47,718,976.36
Sales expenses 194,854,780.37 213,304,364.89
Administration expenses 930,808,787.61 797,426,199.46
Financial expenses 7,316,996.79 -9,109,442.62
Losses of devaluation of asset 119,219,730.37 88,590,217.25
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 1,853,638,285.20 1,377,945,740.24
Including: Investment income on affiliated company and joint
1,604,027,207.30 1,131,546,611.25
venture
Exchange income (Loss is listed with “-”)
Income from assets disposal(Loss is listed with “-”) -748,927.63 -1,294,483.17
Other income 40,394,724.11
III. Operating profit (Loss is listed with “-”) 2,824,221,407.50 1,776,963,215.13
Add: Non-operating income 11,968,167.87 49,303,699.35
Less: Non-operating expense 5,773,593.62 7,720,223.98
IV. Total Profit (Loss is listed with “-”) 2,830,415,981.75 1,818,546,690.50
Less: Income tax expense 183,206,057.17 92,541,909.98
V. Net profit (Net loss is listed with “-”) 2,647,209,924.58 1,726,004,780.52
(i) Net profit of continuous operating (Net loss is listed with “-”) 2,647,209,924.58 1,726,004,780.52
(ii) Net profit of business termination (Net loss is listed with “-”)
Net profit attributable to owners of parent company 2,571,339,490.04 1,672,224,317.05
Minority shareholders’ gains and losses 75,870,434.54 53,780,463.47
VI. Net after-tax of other comprehensive income -57,553,372.50 -43,713,544.99
Net after-tax of other comprehensive income attributable to owners
-57,553,372.50 -43,713,544.99
of parent company
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
1. Changes as a result of re-measurement of net defined
benefit plan liability or asset
2. Share of the other comprehensive income of the investee
accounted for using equity method which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income items which will be
-57,553,372.50 -43,713,544.99
reclassified subsequently to profit or loss
1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising from changes in fair value of
-57,553,372.50 -43,713,544.99
available-for-sale financial assets
3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences arising on translation of foreign
currency financial statements
6.Other
Net after-tax of other comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 2,589,656,552.08 1,682,291,235.53
Total comprehensive income attributable to owners of parent
2,513,786,117.54 1,628,510,772.06
Company
Total comprehensive income attributable to minority
75,870,434.54 53,780,463.47
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 2.55 1.66
(ii) Diluted earnings per share 2.55 1.66
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before
combination, and realized 0 Yuan at last period for combined party
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
4. Profit Statement of Parent Company
In RMB
Item 2017
I. Operating income 3,646,015,253.48 2,036,799,902.87
Less: Operating cost 2,772,717,901.96 1,599,149,986.88
Operating tax and extras 32,231,401.32 17,207,158.95
Sales expenses 41,447,839.21 37,115,337.20
Administration expenses 383,864,560.76 335,634,677.44
Financial expenses 612,009.78 -10,480,951.41
Losses of devaluation of asset 32,483,156.75 28,418,499.67
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 2,684,760,048.35 1,299,983,044.34
Including: Investment income on affiliated company and joint
1,470,504,861.61 1,032,835,715.35
venture
Income from assets disposal(Loss is listed with “-”) -712,637.95 -6,310.83
Other income 29,394,763.19
II. Operating profit (Loss is listed with “-”) 3,096,100,557.29 1,329,731,927.65
Add: Non-operating income 3,830,135.74 39,996,035.47
Less: Non-operating expense 2,394,121.52 5,414,354.95
III. Total Profit (Loss is listed with “-”) 3,097,536,571.51 1,364,313,608.17
Less: Income tax expense 96,268,627.83 41,652,889.27
IV. Net profit (Net loss is listed with “-”) 3,001,267,943.68 1,322,660,718.90
(i) Net profit of continuous operating (Net loss is listed with
3,001,267,943.68 1,322,660,718.90
“-”)
(ii) Net profit of business termination (Net loss is listed with
“-”)
V. Net after-tax of other comprehensive income -57,553,372.50 -43,713,544.99
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1. Changes as a result of re-measurement of net defined
benefit plan liability or asset
2. Share of the other comprehensive income of the investee
accounted for using equity method which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income items which will be
-57,553,372.50 -43,713,544.99
reclassified subsequently to profit or loss
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising from changes in fair value of
-57,553,372.50 -43,713,544.99
available-for-sale financial assets
3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences arising on translation of foreign
currency financial statements
6.Other
VI. Total comprehensive income 2,943,714,571.18 1,278,947,173.91
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2017
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
7,754,845,248.56 5,646,233,371.59
services
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of amount from disposal financial assets that
measured by fair value and with variation reckoned into current
gains/losses
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 43,620,789.57 40,830,918.82
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Other cash received concerning operating activities 65,978,678.90 128,389,351.09
Subtotal of cash inflow arising from operating activities 7,864,444,717.03 5,815,453,641.50
Cash paid for purchasing commodities and receiving labor service 4,582,582,669.13 3,416,440,017.06
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,160,114,421.44 956,097,686.14
Taxes paid 616,431,389.37 442,107,218.12
Other cash paid concerning operating activities 547,618,336.02 473,464,356.14
Subtotal of cash outflow arising from operating activities 6,906,746,815.96 5,288,109,277.46
Net cash flows arising from operating activities 957,697,901.07 527,344,364.04
II. Cash flows arising from investing activities:
Cash received from recovering investment 9,448,612,477.03 9,935,861,906.70
Cash received from investment income 1,098,610,121.87 1,207,746,248.77
Net cash received from disposal of fixed, intangible and other
57,287,480.01 82,241,379.95
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 4,559,984.34 70,178,754.61
Subtotal of cash inflow from investing activities 10,609,070,063.25 11,296,028,290.03
Cash paid for purchasing fixed, intangible and other long-term
469,961,718.71 442,372,043.84
assets
Cash paid for investment 11,389,400,000.00 9,888,110,985.03
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 57,116.41
Subtotal of cash outflow from investing activities 11,859,361,718.71 10,330,540,145.28
Net cash flows arising from investing activities -1,250,291,655.46 965,488,144.75
III. Cash flows arising from financing activities
Cash received from absorbing investment 9,520,000.00 12,800,000.00
Including: Cash received from absorbing minority shareholders’
9,520,000.00 12,800,000.00
investment by subsidiaries
Cash received from loans 245,000,000.00 310,559,165.37
Cash received from issuing bonds
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 254,520,000.00 323,359,165.37
Cash paid for settling debts 157,000,000.00 520,559,165.37
Cash paid for dividend and profit distributing or interest paying 640,733,312.09 541,130,326.60
Including: Dividend and profit of minority shareholder paid by
25,491,872.94 24,803,800.00
subsidiaries
Other cash paid concerning financing activities 1,388,802.28 339,091.00
Subtotal of cash outflow from financing activities 799,122,114.37 1,062,028,582.97
Net cash flows arising from financing activities -544,602,114.37 -738,669,417.60
IV. Influence on cash and cash equivalents due to fluctuation in exchange
-9,588,455.13 745,388.07
rate
V. Net increase of cash and cash equivalents -846,784,323.89 754,908,479.26
Add: Balance of cash and cash equivalents at the period -begin 3,795,223,678.11 3,040,315,198.85
VI. Balance of cash and cash equivalents at the period -end 2,948,439,354.22 3,795,223,678.11
6. Cash Flow Statement of Parent Company
In RMB
Item 2017
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
3,416,825,598.91 1,663,923,521.83
services
Write-back of tax received
Other cash received concerning operating activities 517,431,460.97 98,413,569.34
Subtotal of cash inflow arising from operating activities 3,934,257,059.88 1,762,337,091.17
Cash paid for purchasing commodities and receiving labor service 2,151,676,404.43 855,651,976.61
Cash paid to/for staff and workers 536,335,082.41 391,878,665.88
Taxes paid 286,855,287.15 135,900,666.66
Other cash paid concerning operating activities 122,961,088.23 116,261,020.11
Subtotal of cash outflow arising from operating activities 3,097,827,862.22 1,499,692,329.26
Net cash flows arising from operating activities 836,429,197.66 262,644,761.91
II. Cash flows arising from investing activities:
Cash received from recovering investment 8,859,701,492.00 9,479,200,000.00
Cash received from investment income 1,994,517,515.08 1,192,132,808.61
Net cash received from disposal of fixed, intangible and other
52,607,353.75 75,624,378.58
long-term assets
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Net cash received from disposal of subsidiaries and other units 2,410,502.57
Other cash received concerning investing activities 203,883,811.97 39,384,620.61
Subtotal of cash inflow from investing activities 11,113,120,675.37 10,786,341,807.80
Cash paid for purchasing fixed, intangible and other long-term assets 171,633,121.17 206,896,193.89
Cash paid for investment 10,801,729,258.63 9,779,200,000.00
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 47,000,000.00 57,116.41
Subtotal of cash outflow from investing activities 11,020,362,379.80 9,986,153,310.30
Net cash flows arising from investing activities 92,758,295.57 800,188,497.50
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 80,000,000.00 180,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 80,000,000.00 180,000,000.00
Cash paid for settling debts 82,000,000.00 330,000,000.00
Cash paid for dividend and profit distributing or interest paying 607,280,892.11 504,733,015.15
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 689,280,892.11 834,733,015.15
Net cash flows arising from financing activities -609,280,892.11 -654,733,015.15
IV. Influence on cash and cash equivalents due to fluctuation in exchange
-8,586,691.91 745,388.07
rate
V. Net increase of cash and cash equivalents 311,319,909.21 408,845,632.33
Add: Balance of cash and cash equivalents at the period -begin 2,143,377,059.99 1,734,531,427.66
VI. Balance of cash and cash equivalents at the period -end 2,454,696,969.20 2,143,377,059.99
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
7. Statement of Changes in Owners’ Equity (Consolidated)
Amount for 2017
In RMB
Owners’ equity attributable to parent company
Other
Item equity instrument Provis
Less: Minority Total owners’
Other ion of
Perpetu Invento Reasonabl interests equity
Share capital Capital reserve comprehensive Surplus reserve Retained profit
al ry e reserve genera
Preferre Othe income
capital shares
d stock r l risk
securiti
es
I. Balance at
the end of the 1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
the beginning
of this year
III. Increase/
Decrease in
this year -86,398.2
-57,553,372.50 1,965,969,148.04 44,607,096.43 1,952,936,473.71
(Decrease is
listed with
“-”)
(i) Total
comprehensiv -57,553,372.50 2,571,339,490.04 75,870,434.54 2,589,656,552.08
e income
(ii) Owners’
devoted and
8,480,761.72 8,480,761.72
decreased
capital
1.Common
shares
9,520,000.00 9,520,000.00
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
share-based
payment
4. Other -1,039,238.28 -1,039,238.28
(III) Profit
-605,370,342.00 -39,650,290.00 -645,020,632.00
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3.
Distribution
-605,370,342.00 -39,650,290.00 -645,020,632.00
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4. Other
(V)
-86,398.2
Reasonable -93,809.83 -180,208.09
reserve
1. Withdrawal
17,947,66
in the report 2,379,810.36 20,327,472.03
1.67
period
2. Usage in
18,034,05
the report 2,473,620.19 20,507,680.12
9.93
period
(VI)Others
IV. Balance at
the end of the 1,008,950,570.00 3,417,841,402.89 87,169,455.01 2,606.93 510,100,496.00 9,811,609,138.92 515,693,194.48 15,351,366,864.23
report period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Amount for 2016
In RMB
Owners’ equity attributable to parent company
Other
equity
instrument
Prov
Less
Pe ision
Item : Minority Total owners’
rp
Inve Other of
etu Reasonable interests equity
Share capital Pr Capital reserve ntor comprehensive Surplus reserve Retained profit
al reserve gene
efe y income
ca Ot
rre shar ral
pit he
d es
al r risk
sto
se
ck
cu
riti
es
I. Balance at the end
1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
of the last year
Add: Changes of
accounting policy
Error correction
of the last period
Enterprise
combine under the
same control
Other
II. Balance at the
beginning of this 1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
year
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
III. Increase/
Decrease in this year
20,906,174.92 -43,713,544.99 -825,642.90 1,167,749,032.05 41,037,210.98 1,185,153,230.06
(Decrease is listed
with “-”)
(i) Total
comprehensive -43,713,544.99 1,672,224,317.05 53,780,463.47 1,682,291,235.53
income
(ii) Owners’
devoted and 20,906,174.92 -12,418.48 12,375,177.63 33,268,934.07
decreased capital
1.Common shares
invested by 12,800,000.00 12,800,000.00
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other 20,906,174.92 -12,418.48 -424,822.37 20,468,934.07
(III) Profit
-504,475,285.00 -24,803,800.00 -529,279,085.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
provisions
3. Distribution for
owners (or -504,475,285.00 -24,803,800.00 -529,279,085.00
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. Other
(V) Reasonable
-813,224.42 -314,630.12 -1,127,854.54
reserve
1. Withdrawal in the
16,421,979.63 2,104,124.88 18,526,104.51
report period
2. Usage in the
17,235,204.05 2,418,755.00 19,653,959.05
report period
(VI)Others
IV. Balance at the
end of the report 1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
8. Statement of Changes in Owners’ Equity (Parent Company)
Amount for 2017
In RMB
Other equity
Less
instrument
:
Per Inve Other
Item petu Reasonable
Share capital al Capital reserve ntor comprehensive Surplus reserve Retained profit Total owners’ equity
Preferr reserve
capi Oth y income
ed
tal er
stock shar
sec
uriti es
es
I. Balance at the end of the last year 1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this
1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
year
III. Increase/ Decrease in this year
39,812,500.00 -57,553,372.50 2,835,157,009.59 2,817,416,137.09
(Decrease is listed with “-”)
(i) Total comprehensive income -57,553,372.50 3,001,267,943.68 2,943,714,571.18
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(III) Profit distribution -605,370,342.00 -605,370,342.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-605,370,342.00 -605,370,342.00
shareholders)
3. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 4,785,959.00 4,785,959.00
2. Usage in the report period 4,785,959.00 4,785,959.00
(VI)Others 39,812,500.00 439,259,407.91 479,071,907.91
IV. Balance at the end of the report
1,008,950,570.00 3,488,221,286.39 87,169,455.01 510,100,496.00 8,360,801,089.38 13,455,242,896.78
period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Amount for 2016
In RMB
Other equity
Less
instrument
:
Perp Inve Other
Item Pr etua Reasonable
Share capital efe l Capital reserve ntor comprehensive Surplus reserve Retained profit Total owners’ equity
reserve
rre capi Ot y income
d tal her
sto secu shar
ck ritie es
s
I. Balance at the end of the last year 1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
III. Increase/ Decrease in this year
20,468,934.07 -43,713,544.99 818,185,433.90 794,940,822.98
(Decrease is listed with “-”)
(i) Total comprehensive income -43,713,544.99 1,322,660,718.90 1,278,947,173.91
(ii) Owners’ devoted and decreased
20,468,934.07 20,468,934.07
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners equity
with share-based payment
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
4. Other 20,468,934.07 20,468,934.07
(III) Profit distribution -504,475,285.00 -504,475,285.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-504,475,285.00 -504,475,285.00
shareholders)
3. Other
(IV) Carrying forward internal owners’
equity
1. Capital reserves conversed to capital
(share capital)
2. Surplus reserves conversed to capital
(share capital)
3. Remedying loss with surplus reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 3,396,256.71 3,396,256.71
2. Usage in the report period 3,396,256.71 3,396,256.71
(VI)Others
IV. Balance at the end of the report period 1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.
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 RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.
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 RMB 303.4355 million.
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 RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
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 RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.
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.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about “Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd.” issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMB
ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,
ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,
added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB
680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany 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 RMB 1,020,200,992 up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the
cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation
Limited Shenzhen Branch on September 16, 2015; after the cancellation of repurchase shares, the company’s
paid-up capital (capital) becomes RMB 1,008,950,570 Yuan after the change.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No. 5 Huashan Road, New District, Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
The Company sets up Administration Department, Technology Centre, organization & personnel department,
Office of the Board, compliance department, IT department, Market & Strategy Department, Party-masses
Department, Finance Department, Purchase Department, Manufacturing Quality Department, MS (Mechanical
System) division, AC(Auto spare parts) division and DS (Diesel System ) division etc. and subsidiaries such as
Wuxi Weifu Leader Catalytic Converter Co., Ltd. and Nanjing Weifu Jinning Co., Ltd.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products, fuel oil system testers and equipments, manufacturing of auto
electronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaust
post-processing system; sales of the general machinery, hardware & electrical equipment, chemical products &
raw materials (excluding hazardous chemicals), auto spare parts and vehicles (excluding nine-seat passenger car);
internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. (any projects that needs to
be approved b laws can only be carried out after getting approval by relevant authorities)
Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,
and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereof
Financial statements of the Company were approved by the Board of Directors for reporting dated 13 April 2018.
5. Scope of consolidate financial statement
Shareholding ratio (%) Registered
Proportion Statement
Shortname of capital (in 10
Name of subsidiary of votes Business scope consolidat
subsidiary Directly Indirectly thousand
(%) e (Y/N)
Yuan)
Nanjing Weifu Jinning Internal-combustion
Weifu Jinning 80.00 -- 80.00 34,628.70 Y
Co., Ltd. engine and accessories
Wuxi Weifu Leader
Catalytic Converter Co., Weifu Leader 94.81 -- 94.81 50,259.63 Purifier and muffler Y
Ltd.
Weifu Mashan Pump Glib Internal-combustion
Weifu Mashan 100.00 -- 100.00 16,500 Y
Co., Ltd. engine and accessories
Wuxi Weifu Chang’an Co., Internal-combustion
Weifu Chang’an 100.00 -- 100.00 21,000 Y
Ltd. engine and accessories
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Wuxi Weifu Automotive Weifu Diesel Internal-combustion
100.00 -- 100.00 30,000 Note ①
Diesel System Co., Ltd. System engine and accessories
Wuxi Weifu International Weifu
International 100.00 -- 100.00 3,000 Trade Y
Trade Co. Ltd. Trade
Wuxi Weifu ITM
Internal-combustion
Supercharging Technique Weifu ITM 100.00 -- 100.00 16,000 Y
engine and accessories
Co., Ltd.
Wuxi Weifu Schmidt
Internal-combustion
Power System Spare Parts Weifu Schmidt 66.00 -- 66.00 7,600 Y
engine and accessories
Co., Ltd.
Ningbo Weifu Tianli
Internal-combustion
Supercharging Technique Weifu Tianli 47.9436 -- 47.9436 11,136 Y
engine and accessories
Co., Ltd.
Anhui Weifu Tianshi Internal-combustion Note ②
Weifu Tianshi 52.00 -- 52.00 1,000
Machinery Co., Ltd. engine and accessories
Kunming Xitong Internal-combustion Note ③
Kunming Xitong 70.00 -- 70.00 400
Machinery Co., Ltd. engine and accessories
Wuxi Weifu-Autocam Fine
Weifu Autocam 51.00 -- 51.00 USD1,510 Auto parts Y
Machinery Co. Ltd.
Wuxi Weifu Leader
Weifu Leader
Catalytic Converter -- 60.00 60.00 1,000 Purifier and muffler Y
(Wuhan)
(Wuhan) Co., Ltd.
Weifu Leader (Chongqing) Weifu Leader Note ④
-- 100.00 100.00 2,615.17 Purifier and muffler
Automobile Parts Co., Ltd. (Chongqing)
Note ① Weifu Diesel System are consolidated by merger dated 1 October 2017 from the Company
Note ②: Weifu Tianshi cancellation in 2017, the profit and cash flow from beginning of the year to cancellation
date reckoned into consolidate statement;
Note ③: Kunming Xitong cancellation in 2017, the profit and cash flow from beginning of the year to
cancellation date reckoned into consolidate statement
Note ④: found more in 5-‘Change of consolidation scope for other reasons” in Note VIII
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance, the specific 41 accounting rules revised and issued dated 15 February 2006
and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact
sustainable operation ability of the Company within 12 months since end of the reporting period.
V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, Auto spare parts, mufflers and purifiers etc., in line with the real operational characteristics and relevant
accounting standards, many specific accounting policies and estimation have been formulated for the transactions
and events with revenue recognized concerned. As for the explanation on major accounting judgment and
estimation, found more in Note V-28-“Other major accounting policy and accounting estimation”.
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises, which truly and completely reflected the financial information of the Company dated 31
December 2017, such as financial position, operation achievements and cash flow for the year of 2017.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations
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
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
As a purchaser, fair value of the assets (equity of acquiree held before the date of purchasing included) for
purchasing controlling right from the acquiree, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the acquiree obtained in combination, recognized as goodwill if the results is
positive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of the
identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs.
After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, the
acquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost for
combination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its book
values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency of
the acquiree 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 acquiree.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an investee so as to obtain variable return through participating in the investee’s
relevant activities and the ability to affect such return by use of the aforesaid right over the investee. Relevant
activates refers to activates have major influence on return of the investee’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
deconsolidated 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
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset \"the net profit attributable to the owners of the parent company\". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between \"the net profit attributable to the owners of the parent company\" and \"minority interest\" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between \"the net profit
attributable to the owners of the parent company\" and \"minority interest\" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as \"minority interest\" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
the \"minority interests\" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest, less the net assets attributable to the company since the acquisition date, is recognized as the investment
income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
acquiree directly when the control is lost, namely be transferred to current investment income other than the
relevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit scheme
by the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with
relevant accounting standards such as “Accounting Standards for business Enterprises 2 – Long-term Equity
Investments” or “Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement”.
The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
transactions met one or more of the following situations, the transactions shall normally be accounted for as a
bundle of transactions: ①The transactions are entered into after considering the mutual consequences of each
individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal in
commercial sense; ③The occurrence of an individual transaction depends on the occurrence of one or more
individual transactions in the series; ④ The result of an individual transaction is not economical, but it would be
economical after taking into account of other transactions in the series. When the transactions are not regarded as
a bundle of transactions, the individual transactions shall be accounted as “disposal of a portion of an interest in a
subsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary which
lead to loss of control”. When the transactions are regarded as a bundle of transactions, the transactions shall be
accounted as a single disposal transaction; however, the difference between the consideration received from
disposal and the share of net assets disposed in each individual transactions before loss of control shall be
recognized as other comprehensive income, and reclassified as profit or loss arising from the loss of control when
control is lost.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations.
The company confirms the following items related to the share of interests in its joint operations, and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Determining 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.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. Thereinto,
the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in
accordance with the actual exchange rate in the transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. Thereinto, the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.
At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are converted
in accordance with the middle rate of the market exchange rate published by the People's Bank of China on the
transaction date without changing its original recording currency amount; the foreign currency non-monetary items
measured with the fair value are converted in accordance with the middle rate of the market exchange rate
published by the People's Bank of China on the fair value date, and the generated exchange gains and losses are
included in the current profits and losses as the gains and losses from changes in fair value.
The following displays the methods for translating financial statements involving foreign operations into the
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
transaction dates. The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.
The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Classification and measurement on financial assets and financial liability
In terms of investment purposes and economic natures, the Company divides its financial assets into financial
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
assets( with its variation of fair value reckoned into current gains/losses), financial assets available for sale,
account receivables and held-to-maturity investments, among which, transactional financial asset is measured at
fair value and movement of its fair value is recorded in current gains and losses; financial asset available for sale
is measured at fair value and movement of its fair value is recorded in owners’ equity; account receivables and
held-to-maturity investments are measured at amortized cost.
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial
liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(2) Determination of fair values for financial assets and financial liabilities
The fair value refers to the price that will be received when selling an asset or the price to be paid to transfer a
liability in an orderly transaction between market participants on the date of measurement. Financial instruments
exist in an active market. Fair value is determined based on the quoted price in such market. An active market
refers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and price
fixing service organizations, representing the actual price of a market transaction that takes place in a fair deal.
While financial instruments do not exist in an active market, the fair value is determined using valuation
techniques. Valuation technologies include reference to be familiar with situation and prices reached in recent
market transactions entered into by both willing parties, reference to present fair values of similar other financial
instruments, cash flow discounting method and option pricing models.
As for the equity investment of the investee held by the Company, which has no controlling rights, common
control or significant influence (that is under the major influence), has no quota in an active market and the fair
value cannot be measure reasonably, than divided into financial assets available for sale and measured by cost.
(3) Recognition basis and measurement for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two
forms are listed as follows:
① Transfer of right for collecting cash flow of financial assets to another party;
② Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying
such cash flow to final collector
When that the Company has transferred almost all risks and remunerations arising from ownership of all or part
financial assets to another party, accordingly, recognition for such entire or part financial assets shall be ceased.
Gains and losses are determined by the received consideration less the carrying value of the transferred financial
assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’ equity
shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,
recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed as
financial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerations
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
attached to ownership of such financial assets, while control upon such financial assets still exists, recognition
shall be conducted in light of the degree of its continuous involvement in the transferred financial assets.
Accordingly, relevant liabilities shall be recognized.
(4) Recognition for termination of financial assets and liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued
recognition:
① Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
② Such financial assets have been transferred and meet discontinued recognition condition for financial assets as
regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease
recognition of such financial liability or part thereof.
(5) Impairment of financial assets
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,
as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,
impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate
impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,
impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
great amount in single item and those which prove to be not impaired after separate test, the Company will
conduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records and
historical bad debts, so as to recognize impairment loss.
Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three
characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the
estimated future cash flow of such financial assets, and such influence could be reliably measured by the
Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
① Serious financial difficulty happens to issuer or debtor;
② Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
③ Creditor makes concession for debtors who experience financial trouble in light of consideration for economy
or laws;
④ Debtor is very likely to experience bankrupt or financial reorganization;
⑤ Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;
⑥ It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it
is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial
recognition and the decrease can be reliably measured by reference to the general valuation based on open data.
For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in
country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the
industry in which it belongs to is unpromising;
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
⑦ Material negative changes happen to technologies, markets, economy or law environment in which debtor
operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
⑧ Fair value of equity instrument investment experiences severe or non-temporary falling;
⑨ Other objective evidence indicating impairment happens to financial assets.
In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the
difference between carrying value and present value of estimated future cash flow discounted at effective interest
rate.
After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating
value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition
of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the
carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the
reversal date on assumption that such impairment loss had not been provided.
Impairment of available-for-sale financial assets: in the event that decline in fair value of the available-for-sale
equity instrument is regarded as “severe decline” or “non-temporary decline” on the basis of comprehensive
related factors, it indicates that there is impairment loss of the available-for-sale equity instrument. In particular,
“severe decline” refers to fair value is lower than 50% of the cost price and last for over one year.
“Non-temporary decline” refers to fair value fell for over 6-month sessions.
When the available-for-sale financial assets impair, the accumulated loss originally included in the other
comprehensive income arising from the decrease in fair value was transferred out from the capital reserve and
included in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is
the balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,
current fair value and the impairment loss originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial
assets impaired and which is related to any event occurring after such recognition in subsequent periods, the
impairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-sale
equity instrument will be recognized as other comprehensive income, and the impairment loss reversal of the
available-for-sale debt instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured
reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled
by delivery of that equity instrument, then it will not be reversed.
11. Account Receivable
(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued for
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
single item
Determine basis or amount standards for single The Company’s account receivables with above RMB 1 million in single item
significant amount is defined as account receivables with significant amount in single item.
In line with the difference of present value of future cash flow lower its book
Withdrawal method for account with single significant
value, carried out impairment test independently and withdrawal the bad debt
amount and withdrawal single item bad debt provision
reserves
(2) Receivables with bad debt provision accrual by credit portfolio
Combination Bad debt provision accrual
Classify to many combination based on credit portfolio for those receivables with minor account
singly and those with major amount but has no impairment been found after testing independently;
Age analysis method
base on the actual loss ratio of the receivables of previous years, with same or similar credit
portfolio, and combining actual condition accrual bad debt reserves.
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
Account age Rate for receivables Rate for other receivables
Within 6 months
6 months to 1 year 10.00% 10.00%
1－2 years 20.00% 20.00%
2－3 years 40.00% 40.00%
Over 3 years 100.00% 100.00%
3－4 years 100.00% 100.00%
4－5 years 100.00% 100.00%
Over 5 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for withdrawal single item bad The present value of future cash flow has major difference with the receivable group’s
debt provision present value of future cash flow
Withdrawal method for bad debt Carried out impairment test independently, accrual bad debt reserves according to the
provision difference of present value of future cash flow lower its book value
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
12. Inventories
(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
A. Generally, stock materials are calculated at planned cost. Material cost difference is individually set according
to classification of grant types. Pursuant to the difference between the planned cost of the received or delivered
raw materials and the material cost the aforesaid cost should share after carrying forward at period-end, the
Company adjusts the planned cost to effective cost; finished products are priced at effective costs, and carried
forward to operating cost by weighted average method when being delivered;
B. Products in process are priced at effective costs, and carried forward to finished products at actually occurred
cost;
C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weighted
average method; external purchase goods (from import and export trades) are carried forward to sales cost by
individual pricing method.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of
overall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs of
inventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant to
categories.
As for finished goods, commodities and materials available for direct sales, their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production, their net realizable values are determined by the estimated selling
prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
13. Classified as assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction, the
non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur,
that is, the Company has made resolution on the selling plan and obtained definite purchase commitment, the
selling is estimated to be completed within one year. Those assets whose disposal is subject to approval from
relevant authority or supervisory department under relevant requirements are subject to that approval.
Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or
not the Company retains part equity investment after such disposal, investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale,
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.
The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties, which sets out certain major terms relating to transaction price, time and adequately
stringent punishment for default, which render an extremely minor possibility for material adjustment or
revocation of the agreement.
Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss and
recorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill in
the disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.
If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases, the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted. If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be
restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale, with the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
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 assets in the non-current assets or disposal group held for sale is not depreciated or amortized,
and the debt interests and other fees in the disposal group held for sale continue to be recognized.
If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale, they will be measured at the lower of the following:
(I) The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation, amortization or impairment that should have been recognized given they are not classified as held
for sale;
(II) The recoverable amount.
14. 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 investee. Long-term equity investment without control or joint control or
significant influence of the Group is accounted for as available-for-sale financial assets or financial assets
measured at fair value with any change in fair value charged to profit or loss.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
①For a long-term equity investment acquired through a business combination involving enterprises under
common control, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital, the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For business
combination resulted in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions, these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions will
be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional
consideration paid for further share acquisition on the date of combination shall offset against the capital reserve.
If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive income
recognized as a result of the previously held equity investment accounted for using equity method on the date of
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
combination or recognized for available-for-sale financial assets will not be accounted for.)
②For a long-term equity investment acquired through a business combination involving enterprises not under
common control, the initial investment cost of the long-term equity investment shall be the cost of combination on
the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,
liabilities incurred or borne and equity securities issued. (For business combination resulted in an enterprise not
under common control by acquiring equity of the acquire under common control through a stage-up approach with
several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”. If
they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining
control. If they are not belong to “transactions in a basket”, the initial investment cost of the long-term equity
investment accounted for using cost method shall be the aggregate of the carrying amount of equity investment
previously held by the acquire and the additional investment cost. For previously held equity accounted for using
equity method, relevant other comprehensive income will not be accounted for. For previously held equity
investment classified as available-for-sale financial asset, the difference between its fair value and carrying
amount, as well as the accumulated movement in fair value previously included in the other comprehensive
income shall be transferred to profit or loss for the current period.) plus the combination cost measured by costs
which have directly connection with acquisition are considered as initial investment cost of such long-term equity
investment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the
party being combined as at the combination date are all measured at fair values, without consideration to amount
of minority interests. The surplus of combination cost less fair value net realizable assets of the party being
combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains and
losses.
③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
①Presented controlling ability on investee, the investment shall use cost method for measurement.
②Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the investee are accounted for using equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
investor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no adjustment
shall be made to the initial investment cost. Where the initial investment cost is less than the investor’s interest in
the fair value of the investee’s identifiable net assets at the acquisition date, the difference shall be charged to
profit or loss for the current period, and the cost of the long term equity investment shall be adjusted accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the investee, respectively.
Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying amount of
long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend distributed by
the investee. In respect of the other movement of net profit or loss, other comprehensive income and profit
distribution of investee, 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 investee’s net profits or losses based on the fair values
of the investee’s individual separately identifiable assets at the time of acquisition, after making appropriate
adjustments thereto. In the event of inconformity between the accounting policies and accounting periods of the
investee and the Company, the financial statements of the investee shall be adjusted in conformity with the
accounting policies and accounting periods of the Company. Investment gain and other comprehensive income
shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint
ventures in which the assets disposed of or sold are not classified as operation, the share of unrealized gain or loss
arising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investment
gain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions between
the Group and an investee is not eliminated to the extent that the loss is impairment loss of the transferred assets.
In the event that the Group disposed of an asset classified as operation to its joint ventures or associates, which
resulted in acquisition of long-term equity investment by the investor without obtaining control, the initial
investment cost of additional long-term equity investment shall be the fair value of disposed operation. The
difference between initial investment cost and the carrying value of disposed operation will be fully included in
profit or loss for the current period. In the event that the Group sold an asset classified as operation to its
associates or joint ventures, the difference between the carrying value of consideration received and operation
shall be fully included in profit or loss for the current period. In the event that the Company acquired an asset
which formed an operation from its associates or joint ventures, relevant transaction shall be accounted for in
accordance with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or
loss related to the transaction shall be accounted for.
The Group’s share of net losses of the investee 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 investee 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 investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits after
setting off against the share of unrecognized losses.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note III.- 6 “Preparation Method
of the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of investee) 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 investee unit acquired shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis at
the time of disposal and shall be transferred to profit or loss for the current period on pro rata basis; among the net
assets of investee unit recognized by equity method (excluding net profit or loss, other comprehensive income and
profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee 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 investee 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
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
over the investee 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 investee, it shall be accounted for in accordance with the same accounting treatment for
direct disposal of relevant asset or liability by investee at the time when the control over investee is lost.
Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution under net asset of investee 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 investee 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 investee 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 investee 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 investee
accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at
the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction
shall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The
difference between the disposal consideration for each transaction and the carrying amount of the corresponding
long-term equity investment of disposed equity interest before loss of control shall initially recognized as other
comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-20-”impairment of long-term investment”
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an investee, but to fail to control or joint control the formulation of such policies together with other parties.
While recognizing whether have significant influence by investee, the potential factors of voting power as current
convertible bonds and current executable warrant of the investee held by investors and other parties shall be thank
over.
15. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to Note V-20-“Impairment of
long-term assets”
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a service life excess
one year and has more unit value.
(2) Depreciation methods
Categories Method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5 2.71~4.75
Machinery equipment Straight-line depreciation 10 5 9.50
Transportation equipment Straight-line depreciation 4~5 5 19.00~23.75
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Electronic and other
Straight-line depreciation 3～10 5 9.50～31.67
equipment
As for the fixed assets with impairment accrual, calculated depreciation amount based on the accumulative
number of impairment of fixed assets accrual.
(3) Recognization basis, valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:
① Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the lease
commencement date), the ownership of lease fixed assets can be transferred to the Company after the expiry of
the lease period;
② The Company has the option to purchase or lease the fixed assets, and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options, so whether the Company will
exercise the option can be reasonably determined on the lease commencement date;
③ Even though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of
the lease fixed assets;
④ The present value of the Company’s of minimum lease payment on the lease commencement date is equivalent
to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present value of the
leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of the fair
value of the lease fixed assets on the lease commencement date;
⑤ The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.
(4) The impairment test method of fixed assets and the method of provision for impairment see Note V-20-“Long
term asset impairment”.
17. Construction in process
From the date on which the fixed assets built by the Company come into an expected usable state, the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.
The basis of provision for impairment of properties held for construction in process is referred to Note
V-20-“Impairment of long-term assets”
18. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such
assets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets, investment real estate and inventory are
interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the
acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
19. Intangible assets
(1) Measurement, use of life and impairment testing
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized evenly with the shortest terms among expected useful life, benefit years regulated in the
contract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs and
current gains/losses according to the benefit object.
As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.
Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note
V-20-“Long-term assets impairment”.
(2) Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
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 gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet, and shall be transfer as intangible assets
since such item reached its expected conditions for service.
20. 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 assets such as fixed assets, construction in progress, intangible assets with a finite useful
life, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled
entities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
be estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets
beyond working conditions will be tested for impairment annually, regardless of whether there is any indication of
impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
impairment provision will be made according to the difference and recognized as an impairment loss. The
recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the
future cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an
arm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be
determined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,
including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the
asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over
the course of continued use and final disposal is determined as the amount discounted using an appropriately
selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it
is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the restorable value.
21. Long-term Deferred Expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
22. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfares occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance, work-injury
insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
specified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees,
or the regulations or measures the enterprise established for providing post-employment benefits to employees.
Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier. The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the
employees who retire before schedule from the date on which the employees stop rendering services to the
scheduled retirement date, shall be recognized (as compensation for termination of employment) in the current
profit or loss by the Group if the recognition principles for provisions are satisfied.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(4)Accounting for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the
employees satisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans,
and the defined benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan
assets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the supplementary
retirement benefits (including the service costs of the current period, the previous service costs, and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes
generated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other
consolidated income.
23. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
24. Revenue
(1) Concrete judging criteria for time of recognized
The major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retain the
continued management right generally related to ownership, nor exercise effective control over the sold products;
the relevant economic benefits are probable to flow into the Company; the relevant income and costs can be
measured reliably.
Concrete judging criteria for time of recognized the income from goods sales:
The Company's domestic sales revenue recognition time: The company delivers goods as agreed, checks the goods
that the buyers have received and inspected during the period of the last reconciliation date and this reconciliation
date with the buyers on the reconciliation date as agreed, and transfers the risks and remunerations to the buyers
after checking, the Company issues the invoices to the buyers in accordance with the recognized varieties,
quantities and amounts and affirms the sales revenue realization on the reconciliation date.
The Company's overseas sales revenue recognition time: After checking by the customs, the Company affirms the
sales revenue realization according to the date of departure on the customs declaration.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(2) Recognition of revenue of assets using right alienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit
can flow into the Company, and the amount of revenue can be measured reliably, revenue measured by the follow:
① Interest income amount: calculated and determined in accordance with the time that others use the enterprises
cash and the actual interest rate.
② Royalty revenue amount: calculated and determined in accordance with the charging time and method of the
relevant contract or agreement as agreed.
The basis that the Company confirms the revenue from transferring the right to use assets.
Rental income: the revenue realization is confirmed after collecting the rent on the date as agreed in the rental
contract (or agreement). For the rent not received on the date as agreed in the contract or agreement but can be
received, and of which the amount of revenue can be measured reliably can also be recognized as revenue.
(3) When confirming the incomes of labor services and construction contracts according to the percentage of
completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service revenue is
determined and recognized by adopting the percentage of completion method. The completion progress of service
transaction is determined by the proportion of incurred costs in the estimated total cost.
The total service revenue is determined by the received or receivable contract or agreement costs, except that the
received or receivable contract or agreement costs are not fair. On the balance sheet date, the service revenue of the
current period is determined by multiplying the total service revenue by the completion progress and deducting
the amount accumulated in the previous accounting period and confirmed to render the service revenue.
Meanwhile, the labor costs of the current period are carried forward by multiplying the total estimated costs of
labor services by the completion progress and deducting the amount accumulated in the previous accounting
period with confirmed service costs.
For the service transaction results cannot be estimated reliably on the balance sheet date, respectively dispose as
following circumstances:
①The incurred labor costs estimated to be compensated are confirmed to render the service revenue according to
the incurred labor costs, and are carried forward by the equivalent amount.
②The incurred labor costs estimated not to be compensated are reckoned in the current profits or losses, and are
not confirmed to render the service revenue.
25. Government Grants
(1) Determination basis and accounting for government grants related to assets
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into current
gains/losses according to the depreciation process in use life of such assets.
A government grant related to income, if they making up relevant expenses and losses for later period, than
recognized deferred income, and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred, than reckoned into current
gains/losses.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
(2) Determination basis and accounting for government grants related to income
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value. Measured by nominal amount if the fair value can not be reliably acquired.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and should be reckoned into
current gain/loss according to the depreciation process of the use of such assets life.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or
loss over the useful life of the asset.
A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.
The financial discount funds received by the Company shall write down relevant borrowing costs.
26. Deferred tax assets / deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations, different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods, deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income, then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses, excluding the follow income tax:
①Enterprise combination;
②Transactions or events recognized in owner’s equity directly
27. Lease
(1) Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct costs
incurred by the Company shall be reckoned into value of assets lease-in.
Finance leased assets: on the lease commencement date, the company affirms the balance among the finance lease
receivables, the sum of unguaranteed residual value and its present value as the unrealized financing income, and
recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to the
rental transaction, the company reckons in the initial measurement of the finance lease receivables, and reduces
the amount of income confirmed in the lease term.
28. Other important accounting policy and accounting estimation
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,
the Company needs to judge, estimate and assume the book value of the report items cannot be accurately
measured. These judgments, estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors, which shall impact the reported amounts of
income, expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
However, the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of
continuing operations, the changes in accounting estimates only affect the current period, of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods, of which the impacts are recognized in the current and future periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate
and assume are as follows:
(1) Provision for bad debts
According to the accounting policies of the accounts receivable, the Company adopts the allowance method to
calculate the bad debt losses. The impairment of receivables is based on the assessment to the collectability of the
accounts receivable. The impairment of accounts receivable requires the management’s judgments and estimates.
The actual results and the differences between the previously estimated results shall affect the book value of
accounts receivable and the provision or return of the receivables’ bad debt reserves during the period estimated to
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
be changed.
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Held-to-maturity investments
The Company classifies the non-derivative financial assets that meet the requirements, have the fixed or
ascertainable repayment amount and fixed due date, and that the Company has the positive intention and ability to
hold to maturity as the held-to-maturity investment. This classification involves a lot of judgments. In the process
of making the judgments, the Company will evaluate its willingness and ability to this held-to-maturity investment.
Except in certain cases (such as the investments with insignificant sales amount when the maturity date comes), if
the Company fails to hold these investments till the maturity date, then all the investments shall be reclassified to
the available-for-sale financial assets which cannot be classified as the held-to-maturity investments in this fiscal
year and the next two fiscal years. This kind of case may have a significant impact on the relevant financial assets
value listed on the financial statements, and may affect the Company's financial instruments risk management
strategy.
(4) Impairment of held-to-maturity investments
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments. The objective evidences of impairment include that the issuer has serious financial difficulties so that
the financial assets cannot continue to be traded in an active market, or cannot be able to fulfill the contract terms
(for example, breach the contract of paying the interests or principal), etc. In the process of making the judgments,
the Company needs to evaluate the impact of the objective evidence of impairment to the expected future cash
flows of the investment.
(5) Impairment of financial assets available for sale
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments and assumptions so as to determine whether it is needed to affirm its impairment loss in the profit
statement. In the process of making the judgments and assumptions, the Company needs to evaluate the extent and
duration when the fair value of the investment is less than the cost, as well as the financial situation and short-term
business prospects of the investees, including the industry conditions, technological change, credit rating, default
rates, and risks of the counterparty.
(6) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
the output, price, and related operating expenses of the asset (or asset group) and the discount rate used for
calculating the present value. When estimating the recoverable amount, the Company shall adopt all the relevant
information can be obtained, including the prediction related to the output, price, and related operating expenses
based on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.
When estimating the present value of the future cash flow, the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group, and select the proper discount rate to determine the
present value of the future cash flows.
(7) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.
The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(8) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have some
uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs to
get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimated
amount, the difference shall have an impact on its current and deferred income taxes during the final identification
period.
(9) Early retirement benefits and supplementary retirement benefits
The expenses of the Company's early retirement benefits and supplementary retirement benefits and the amount of
liabilities are determined in accordance with various assumptions. These assumptions include the discount rate,
the average growth rate of health care costs, the subsidy growth rate of the early retired personnel and retirees and
the other factors. The differences between the actual results and assumptions will be immediately identified and
included in the costs of the current year. Although the management thought the reasonable assumptions have been
adopted, the changes in the actual experience and assumed conditions will impact the costs and liability balances
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
of the Company's internal early retirement benefits and supplementary retirement benefits.
29. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
√ Applicable □Not applicable
On 28 April 2017, the “Notice of Accounting Standards for Business Enterprise No.42- Holding of the
non-current assets and disposal group ready for sale and Discontinued Operation (Cai Kuai [2017] No.13)” was
issued by Ministry of Finance, the non-current assts and disposal group ready for sale are re-classified, measured
and listed as well as the listing of discontinued operation; the rules are came into effect since 28 May 2017
On 10 May 2017, the Ministry of Finance issued the Notice Relating to Printing and Amending No.16 of
Enterprise Accounting Standards - Government Subsidy (CK[2017]No.15) to effect amendment to No.16 of
Enterprise Accounting Standards - Government Subsidy, which requires adoption by all the enterprises applying
Enterprise Accounting Standards since 12 June 2017.
Pursuant to the Notice(CK[2017]No.15), the Company adopts future appropriate method for such government
subsidy existed since 1 January 2017, and adjusts those government grants newly increased during the period
from 1 January 2017 to 12 June 2017 under this standard. Adoption of future appropriate method requires no need
to restate the previous comparative statements.
On 25 December 2017, the Ministry of Finance issued the Notice Relating to Printing and Amending the General
Forms of Business Financial Statements (CK[2017]No.30) to effect amendment to the general forms of business
financial statements, which requires non-financial enterprises implementing Enterprise Accounting Standards to
prepare financial statements for 2017 and subsequent periods according to this Notice.
The above policies result in the following impact on the items and amount of the Company’s comparative
financial statements:
Amount impact on relevant financial statement
for year of 2016/dated 31 December 2016
Content and reasons for accounting policy changed
Amount
Item
increased+/decreased-
“Continuous operation net profit” and “discontinued operation / /
net profit” listed in profit statement. Corresponding date during
the comparable accounting period shall be adjusted
As for the government grants with routine operation activity / /
concerned of the Company will re-classified from
st
“Non-operation income” to “Other income” since 1 Jan. 2017.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Comparative data will not be adjusted
The item of “income from assets disposal” will added in profit Non-operation income -1,313,513.35
statement, part of the gains/losses of assets disposal originally Non-operation -2,607,996.52
listed under “non-operation income” and “non-operation expenditure
expenditure” will re-classified to item of “income from assets Income from assets -1,294,483.17
disposal”. Comparative data will be adjusted correspondingly disposal
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
30. Other
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
Tax rate of 17%, 11%, 6% and 5%，rate for exported commodities is stipulated by the state
VAT Taxable income
with declaration of export tax rebate, rate of tax may be “exempted, credited and refunded”
City maintaining Turnover tax
7%
& construction tax payable
Corporation
Taxable income 25%、15%
income tax
Turnover tax
Educational surtax 5%
payable
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Weifu Mashan、Weifu Chang’an、Weifu International Trade、Weifu ITM、Weifu Schmidt、Weifu Leader
25%
(Wuhan)、Weifu Leader (Chongqing)
The Company、Weifu Jinning、Weifu Leader、Weifu Tianli、Weifu Autocam 15%
2. Tax preference
On 17 November 2017, the Company got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732000007. Corporate income tax of the
Company shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 27 December 2017, Weifu Jinning got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732004010. Corporate income tax of the
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Weifu Jinning shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Leader got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001828. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 29 November 2017, Weifu Tianli got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Bureau of Ningbo, Department of Finance of Ningbo, Ningbo Office, SAT and Ningbo, Zhejiang
Provincial Local Taxation Bureau, certificate No.: GR201733100363. Corporate income tax of the Weifu Tianli
shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
On 17 November 2017, Weifu Autocam got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001043. Corporate income tax of the
Weifu Autocam shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
3. Other
Nil
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Cash on hand 736,773.22 776,872.53
Cash in bank 3,027,702,581.00 3,893,357,790.61
Other monetary fund 90,270,058.61 75,539,405.42
Total 3,118,709,412.83 3,969,674,068.56
Other explanation
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of
potential recovery risks arising from pledge, mortgage or frozen:
Item 2017-12-31 2016-12-31
Bank acceptance bill, L/C and other collateral 89,623,690.04 75,539,405.42
Frozen dividend 646,368.57 --
Total 90,270,058.61 75,539,405.42
Other note:
The frozen dividend of RMB646,368.57 represents the part of dividends distributed by SDEC Power (stock
code:600841) and Miracle Automation (stock code:002009) in 2017 held by the Company as financial assets
available for sale. According to the notices numbered Yue 03MC[2016]2490 and Yue 03MC[2016]2492 served
by Guangdong Shenzhen Intermediate People’s Court, these dividends were frozen.
2. Note receivables
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 1,399,006,661.54 1,150,084,383.06
Commercial acceptance bill 65,250,273.29 129,760,394.04
Total 1,464,256,934.83 1,279,844,777.10
(2) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Bank acceptance bill 583,421,990.27
Total 583,421,990.27
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 500,948,055.50
Total 500,948,055.50
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end:
Nil
3. Accounts receivable
(1) Accounts receivable by category:
In RMB
Closing balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Types Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
with single
significant amount 1,112,2 1,112,231
0.08% 100.00%
and withdrawal bad 31.00 .00
debt provision
separately
Receivables with bad
1,332,6
debt provision 2,006,93 11,359,2 1,995,577 7,992,570 1,324,703,5
99.90% 0.57% 96,113. 99.75% 0.60%
accrual by credit 7,035.11 04.21 ,830.90 .78 43.17
portfolio
Accounts with single
significant amount
1,935,10 1,935,10 2,237,0 2,237,015
and bad debts 0.10% 100.00% 0.17% 100.00%
7.25 7.25 15.22 .22
provision accrued
individually
1,336,0
2,008,87 13,294,3 1,995,577 11,341,81 1,324,703,5
Total 100.00% 0.66% 45,360. 100.00% 0.85%
2,142.36 11.46 ,830.90 7.00 43.17
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Subitem of within one year
Within 6 months 1,946,072,738.39
6 months to 1 year 48,721,713.45 4,872,171.35 10.00%
Subtotal of within 1 year 1,994,794,451.84 4,872,171.35
1-2 years 5,471,704.60 1,094,340.92 20.00%
2-3 years 2,130,311.21 852,124.48 40.00%
Over 3 years 4,540,567.46 4,540,567.46 100.00%
Total 2,006,937,035.11 11,359,204.21 0.57%
Explanation on combination determines:
Excluding the account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable: Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 4,981,813.13 Yuan; the amount collected or switches back amounting to 2,574,244.07 Yuan.
Important bad debt provision collected or switch back: Nil
The bad debt provision switch back in the Period refers to the bad debt provision accrual independently from part
accounts at end of last period, are collected in the period in way of cash. The bad debt verified in the period
amounted as 455,074.60 Yuan.
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Changzhou Mengfa Fuel Injector Co., Ltd. 353,111.39
Other small companies 101,963.21
Total 455,074.60
Major written-off for the major receivable: Nil
Written-off for the major receivable:
The amount are arising from non-related transactions
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(4) Top 5 receivables at ending balance by arrears party
Total year-end balance of top five receivables by arrears party amounting to 1,025,805,396.02 Yuan, takes 51.06
percent of the total account receivable at year-end, bad debt provision accrual correspondingly at year-end
amounting as 636,135.42 Yuan.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
4. Advance payment
(1) Advance payment by age
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within one year 94,641,350.21 96.99% 70,920,782.92 95.80%
1-2 years 2,550,321.91 2.61% 2,014,547.03 2.72%
2-3 years 319,185.79 0.33% 1,095,156.43 1.48%
Over 3 years 65,339.97 0.07%
Total 97,576,197.88 -- 74,030,486.38 --
Explanation on reasons of failure to settle on important advance payment with age over one year:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Total year-end balance of top five advance payment by prepayment object amounted to 49,968,494.23 Yuan,
takes 51.21 percent of the total advance payment at year-end.
5. Interest receivable
(1) Category
In RMB
Item Closing balance Opening balance
Time deposit 2,281,979.17 2,487,527.65
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Total 2,281,979.17 2,487,527.65
(2) Major overdue interest
Nil
6. Other accounts receivable
(1) Other accounts receivable by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single significant 2,775,55 2,775,55 3,358,0 3,358,098
25.60% 100.00% 27.84% 100.00%
amount and 2.63 2.63 98.66 .66
withdrawal bad debt
provision separately
Other receivables
with bad debt 8,067,46 2,852,84 5,214,623 8,705,1 2,797,232 5,907,873.9
74.40% 35.36% 72.16% 32.13%
provision accrual by 6.20 2.79 .41 06.54 .62
credit portfolio
10,843,0 5,628,39 5,214,623 12,063, 6,155,331 5,907,873.9
Total 100.00% 51.91% 100.00% 51.03%
18.83 5.42 .41 205.20 .28
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Account Closing balance
receivable(units) Account receivable Bad debt reserve Accrual ratio Reasons
American HESS 1,514,671.20 1,514,671.20 100.00% Bankruptcy
Nanjing Jinning
1,260,881.43 1,260,881.43 100.00% Un-recyclable
Machinery Factory
Total 2,775,552.63 2,775,552.63 -- --
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Subitem of within one year
Within 6 months 4,117,983.20
6 months to one year 82,147.40 8,214.74 10.00%
Subtotal within one year 4,200,130.60 8,214.74
1-2 years 1,116,534.44 223,306.89 20.00%
2-3 years 215,800.00 86,320.00 40.00%
Over 3 years 2,535,001.16 2,535,001.16 100.00%
Total 8,067,466.20 2,852,842.79 35.36%
Explanations on combination determine:
Explanations on combination determine: Excluding the other account receivable accrual impairment provision
separately; based on actual loss ratio of the receivable groups that owes same or similar risk features, which has
classify by age in previous years, determine accrual ratio for bad debt provision combine with real condition.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 265,059.52 Yuan; the amount collected or switches back amounting to 663,214.59 Yuan.
The major switch back or collected of the bad debt provision in the Period: Nil
The bad debt provision switch-back in the Period mainly refers to the amount that accrual for bad debt provision
was collected in the Period by monetary fund. The bad debt verified in the period amounted as 128,780.79 Yuan.
(3) Other receivables actually written-off during the reporting period
In RMB
Items written-off
Other small companies 128,780.79
Note of important other receivables of written-off: Nil
Note of other receivables of written-off:
The current written-off other receivables are sporadic households, every detail has small amount and is not
generated by non-related transaction.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 4,883,788.59 5,124,447.95
Cash deposit 3,457,080.65 3,550,402.75
Staff loans and petty cash 2,099,504.91 1,958,084.34
Other 402,644.68 1,430,270.16
Total 10,843,018.83 12,063,205.20
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total
Ending Ending balance of
Company Nature Age ending balance of
balance bad bet provision
other receivables
Wuxi Aimingsi Automotive Intercourse funds
1,949,507.34 Within 2 years 17.98% 218,628.69
Electronic System Co., Ltd. of unit
Ningbo Jiangbei High-Tech Industry
Park Development Construction Co., Performance bond 1,767,000.00 Over 3 years 16.29% 1,767,000.00
Ltd.
Advance payment Specific
American HESS 1,514,671.20 13.97% 1,514,671.20
transfer-in identification
Intercourse funds Specific
Nanjing Jinning Machinery Factory 1,260,881.43 11.63% 1,260,881.43
of unit identification
Wuxi Tianyuan International Logistic Customs import Within 6
158,177.98 1.46%
Co.,Ltd. deposit months
Total -- 6,650,237.95 -- 61.33% 4,761,181.32
(6) Account receivables related to government subsidies
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
(8)The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
7. Inventory
(1) Inventory classification
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 444,304,506.71 83,879,268.03 360,425,238.68 344,263,200.85 95,153,127.76 249,110,073.09
Goods in process 198,648,407.88 15,483,517.38 183,164,890.50 158,783,541.69 16,100,730.42 142,682,811.27
Finished goods 1,098,294,008.21 162,945,096.69 935,348,911.52 1,102,621,081.29 144,969,430.40 957,651,650.89
Total 1,741,246,922.80 262,307,882.10 1,478,939,040.70 1,605,667,823.83 256,223,288.58 1,349,444,535.25
(2) Inventory depreciation reserve
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Accrual Other Switch back or write-off Other
Raw materials 95,153,127.76 26,336,415.76 8,079,454.21 29,530,821.28 83,879,268.03
Goods in process 16,100,730.42 7,977,467.48 8,594,680.52 15,483,517.38
Finished goods 144,969,430.40 71,091,751.86 53,116,085.57 162,945,096.69
Total 256,223,288.58 105,405,635.10 8,079,454.21 91,241,587.37 262,307,882.10
①Net realizable value of the inventory refers to: during the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed, sales price estimated and relevant
taxes.
②Accrual basis for inventory depreciation reserve:
Accrual basis for inventory impairment
Item Specific basis for recognization
provision
The materials sold due to finished Results from the estimated sale price of such inventory less the cost
Materials on hand goods manufactured, its net realizable what will happen, estimated sales expenses and relevant taxes till the
value is lower than the book value goods completed
The goods in process sold due to Results from the estimated sale price of such inventory less the cost
finished goods manufactured, its net what will happen, estimated sales expenses and relevant taxes till the
Goods in process
realizable value is lower than the book goods completed
value
its net realizable value is lower than the Results from the estimated sale price less the vary taxes which shall
Finished goods
book value be taken in process of sales
③Reasons of switch-back for inventory falling price reserves:
Item Reasons of switch-back
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Materials on hand The market price for the materials for selling soaring in the Period, thus switch-back in the inventory falling
price reserves which was accrual
④Reasons of write-off for inventory falling price reserves:
Item Reasons of write-off
Materials on hand Used for production and the finished goods are realized sales
Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
Finished goods Sales in the Period
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without unsettlement from construction contract at period-end
Nil
8. Other current assets
In RMB
Item Closing balance Opening balance
Entrust financing products 3,841,320,000.00 1,870,000,000.00
Receivable export tax rebates 14,289,026.22 8,633,684.76
Prepaid taxes and VAT retained 25,338,518.05 31,578,246.17
Input tax to be deducted and certification 2,568,145.27 937,665.59
Other 4,481,600.99 3,076,283.15
Total 3,887,997,290.53 1,914,225,879.67
9. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Instrument equity
469,495,975.95 59,433,106.95 410,062,869.00 624,668,567.95 59,433,106.95 565,235,461.00
available for sale:
Measured by fair value 266,376,600.00 266,376,600.00 361,847,700.00 361,847,700.00
Measured by cost 203,119,375.95 59,433,106.95 143,686,269.00 262,820,867.95 59,433,106.95 203,387,761.00
Other -- financial products 178,080,000.00 178,080,000.00 130,000,000.00 130,000,000.00
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Total 647,575,975.95 59,433,106.95 588,142,869.00 754,668,567.95 59,433,106.95 695,235,461.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity available for Instrument debt
Type Total
sale available for sale
Cost /liability of equity instrument/ amortization cost of
163,824,300.00 163,824,300.00
debt instrument
Fair value 266,376,600.00 266,376,600.00
Amount of fair value changes that accumulatively
102,552,300.00 102,552,300.00
reckoned in other comprehensive gains
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-ho
The invested Decr Cash
Period-beginni Decrease Period-beginn Incre lding in
entity Increased Period-end ease Period-end dividend
ng d ing ased invested
d
entity
Guolian 2,520,000.
12,000,000.00 12,000,000.00 0.95%
Securities
Guangxi Liufa
1,600,000.00 1,600,000.00 1,600,000.00 1,600,000.00 1.22%
Co., Ltd.
Financial
Company of
Changchai 800,000.00 800,000.00 800,000.00 800,000.00
Group Co.,
Ltd.
H&J Vanguard
33,000,000.0
Investment 33,000,000.00 33,000,000.00 33,000,000.00 11.72%
Co., Ltd.
Nanjing
Hengtai
Insurance and 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1.85%
Broker Co.,
Ltd.
Henan Gushi
Weining Oil 2,033,106.95 2,033,106.95 2,033,106.95 2,033,106.95
Pump &
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Nozzle Co.,
Ltd.
Beijing Zhike
Industrial
Investment 11,000,000.0
86,940,000.00 86,940,000.00 11,000,000.00 12.66%
Holding
Group Co.,
Ltd.(Note)
Wuxi Xidong
Technological
5,000,000.00 5,000,000.00 1.43%
Industry Park
Co., Ltd.
Shanghai IMS
Automotive
10,000,000.0
Electronic 10,000,000.00 10,000,000.00 10,000,000.00 12.27%
System Co.,
Ltd.
Shanghai CD
Dengtong
59,701,4
Equity 110,447,761.00 50,746,269.00 14.93%
92.00
Investment
Fund
262,820,867.9 59,701,4 203,119,375.9 59,433,106.9 2,520,000.
Total 59,433,106.95 --
5 92.00 5 5
Note: In August 2017, the enterprise changed its name to “Beijing Zhike Industrial Investment Holding Group Co.,
Ltd.” from “Beijing Futian Industrial Invstment Holding Group Co., Ltd.”
(4) Changes of impairment in Period
In RMB
Instrument equity Instrument debt available
Type Total
available for sale for sale
Balance of impairment accrual at period-begin 59,433,106.95 59,433,106.95
Balance of impairment accrual at period-end 59,433,106.95 59,433,106.95
(5) Where the fair value of equity instruments available for sale drops significantly or not contemporarily
at period-end, without impairment provision is made
Nil
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
10. Long-term equity investment
In RMB
+,-
Endin
Other
Ca g
Add compr
pit Other balan
The itio ehensi Impai
al Investment gains equit Cash dividend or ce of
invested Opening balance nal ve rment Oth Closing balance
re recognized under y profit announced impai
entity inve incom accru er
du equity chan to issued rment
stm e al
cti ge provi
ent adjust
on sion
ment
I. Joint venture
Wuxi Weifu
Environment
Protection 447,259,593.58 75,623,195.68 522,882,789.26
Catalyst Co.,
Ltd.
Subtotal 447,259,593.58 75,623,195.68 522,882,789.26
II. Associated enterprise
RBCD 2,115,920,812.13 1,159,336,578.29 666,460,456.42 2,608,796,934.00
Zhonglian
Automobile
811,404,971.22 355,431,222.14 207,800,000.00 959,036,193.36
Electronic Co.,
Ltd
Wuxi Weifu
Fine Machinery
46,445,383.85 6,503,525.11 3,600,000.00 49,348,908.96
Manufacturing
Co., Ltd.
Subtotal 2,973,771,167.20 1,521,271,325.54 877,860,456.42 3,617,182,036.32
Total 3,421,030,760.78 1,596,894,521.22 877,860,456.42 4,140,064,825.58
11. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Item House and building Land use right Construction in process Total
I. original book value
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
1.Opening balance 63,545,325.48 63,545,325.48
2. increased in the Period
(1) outsourcing
(2) Inventory\fixed assets\construction in
process transfer-in
(3) increased by combination
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 63,545,325.48 63,545,325.48
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 38,431,852.94 38,431,852.94
2. increased in the Period 1,568,641.76 1,568,641.76
(1) accrual or amortization 1,568,641.76 1,568,641.76
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 40,000,494.70 40,000,494.70
III. Depreciation reserves
1.Opening balance
2. increased in the Period
(1) accrual
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance
IV. Book value
1. Ending Book value 23,544,830.78 23,544,830.78
2. Opening Book value 25,113,472.54 25,113,472.54
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(3) Investment real estate without property certification held
Nil
12. Fixed assets
(1) Fixed assets
In RMB
Machinery Transportation Electronic and
Item Housing buildings Total
equipment equipment other equipment
I. original book value
1.Opening balance 1,325,757,440.87 2,039,144,555.18 42,046,936.44 427,745,109.70 3,834,694,042.19
2. increased in the Period 212,123,756.33 200,415,621.16 2,582,780.52 14,551,201.99 429,673,360.00
(1) Purchase 20,206,400.00 1,645,309.36 340,758.08 11,647,893.21 33,840,360.65
(2) construction in process
191,917,356.33 198,770,311.80 2,242,022.44 2,903,308.78 395,832,999.35
transfer-in
(3) increased by combination
3. decreased in the Period 25,424,784.73 3,950,949.37 18,813,532.51 48,189,266.61
(1) disposal or scrapping 25,339,464.73 3,950,949.37 18,813,532.51 48,103,946.61
(2) Construction in process
85,320.00 85,320.00
transfer-in
4.Closing balance 1,537,881,197.20 2,214,135,391.61 40,678,767.59 423,482,779.18 4,216,178,135.58
II. Accumulated depreciation
1.Opening balance 237,002,543.29 910,479,996.85 29,379,831.90 174,403,406.82 1,351,265,778.86
2. increased in the Period 46,665,628.52 188,268,669.95 3,754,121.33 26,637,294.01 265,325,713.81
(1) accrual 46,665,628.52 188,268,669.95 3,754,121.33 26,637,294.01 265,325,713.81
3. decreased in the Period 21,565,017.28 3,436,620.97 15,207,482.21 40,209,120.46
(1) disposal or scrapping 21,534,747.23 3,436,620.97 15,207,482.21 40,178,850.41
(2) Construction in process
30,270.05 30,270.05
transfer-in
4.Closing balance 283,668,171.81 1,077,183,649.52 29,697,332.26 185,833,218.62 1,576,382,372.21
III. Depreciation reserves
1.Opening balance 29,086,874.78 73,320.38 6,428,032.83 35,588,227.99
2. increased in the Period 19,372,017.18 512,118.31 19,884,135.49
(1) accrual 19,372,017.18 512,118.31 19,884,135.49
3. decreased in the Period 420,841.98 128,386.67 549,228.65
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(1) disposal or scrapping 420,841.98 128,386.67 549,228.65
4.Closing balance 48,038,049.98 73,320.38 6,811,764.47 54,923,134.83
IV. Book value
1. Ending Book value 1,254,213,025.39 1,088,913,692.11 10,908,114.95 230,837,796.09 2,584,872,628.54
2. Opening Book value 1,088,754,897.58 1,099,577,683.55 12,593,784.16 246,913,670.05 2,447,840,035.34
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by financing lease
Nil
(4) Fixed assets acquired by operating lease
Nil
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
Boiler room and guard house of Weifu Jinning 2,950,289.41 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 46,024,371.74 Still in process of relevant property procedures
13. Construction in progress
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
2nd Phase construction project
3,364,768.05 3,364,768.05 29,844,630.44 29,844,630.44
in industrial park
Weifu Tianli Technical
16,518,417.24 16,518,417.24 5,500,132.00 5,500,132.00
Transformation Project
Technical
23,611,775.63 1,470,033.00 22,141,742.63 9,282,761.21 4,820,033.00 4,462,728.21
transformation of parent
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
company
Technical
transformation of Weifu 32,705,249.53 32,705,249.53 6,368,843.92 6,368,843.92
Autocam
Other project 27,711,626.45 2,096,342.62 25,615,283.83 46,541,110.25 2,096,342.62 44,444,767.63
Total 103,911,836.90 3,566,375.62 100,345,461.28 97,537,477.82 6,916,375.62 90,621,102.20
(2) Changes of major projects under construction
In RMB
Acc
umu includi Inter
Propor lated ng: est
tion of amo interes capit
Pr Sour
Bu Fixed assets Other project unt t aliza
Opening increased in the Closing og ce of
Item dg transfer-in in decreased in invest of capital tion
balance Period balance res fund
et the Period the Period ment inter ized rate
s s
in est amoun of
budget capit t of the the
aliza year year
tion
2nd Phase
constructi
on project Oth
29,844,630.44 104,126,157.56 130,606,019.95 3,364,768.05
in er
industrial
park
Weifu
Tianli
Technical Oth
5,500,132.00 30,002,691.07 18,929,277.62 55,128.21 16,518,417.24
Transform er
ation
Project
Technical
transforma
Oth
tion of 9,282,761.21 69,638,622.09 51,959,607.67 3,350,000.00 23,611,775.63
er
parent
company
Technical
Oth
transforma 6,368,843.92 38,349,408.41 12,013,002.80 32,705,249.53
er
tion of
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Weifu
Autocam
Weifu
ITMA 102 Oth
29,241,859.96 24,862,322.29 54,104,182.25
warehouse er
project
Total 80,238,227.53 266,979,201.42 267,612,090.29 3,405,128.21 76,200,210.45 -- -- --
(3) The provision for impairment of construction projects
Nil
14. Intangible assets
(1) Particular about intangible assets
In RMB
Non-patent Trademark and Computer
Item Land use right Patent Total
technology trademark license software
I. original book value
1.Opening balance 376,128,220.00 3,539,793.05 41,597,126.47 45,121,813.31 466,386,952.83
2. increased in the Period 5,945,300.00 6,096,636.15 12,041,936.15
(1) purchase 5,945,300.00 6,096,636.15 12,041,936.15
(2) internal R&D
(3) increased by combination
3. decreased in the Period
(1) disposal
4.Closing balance 382,073,520.00 3,539,793.05 41,597,126.47 51,218,449.46 478,428,888.98
II. accumulated amortization
1.Opening balance 62,562,716.74 1,917,389.04 9,709,000.00 28,344,428.29 102,533,534.07
2. increased in the Period 8,262,512.32 353,979.73 9,999,819.50 18,616,311.55
(1) Accrual 8,262,512.32 353,979.73 9,999,819.50 18,616,311.55
3. decreased in the Period
(1) disposal
4.Closing balance 70,825,229.06 2,271,368.77 9,709,000.00 38,344,247.79 121,149,845.62
III. impairment provision
1.Opening balance 16,646,900.00 16,646,900.00
2. increased in the Period
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
(1) Accrual
3. decreased in the Period
(1) disposal
4.Closing balance 16,646,900.00 16,646,900.00
IV. Book value
1. Ending Book value 311,248,290.94 1,268,424.28 15,241,226.47 12,874,201.67 340,632,143.36
2. Opening Book value 313,565,503.26 1,622,404.01 15,241,226.47 16,777,385.02 347,206,518.76
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0%.
(2) Land use rights without certificate of ownership
Nil
15. Goodwill
(1) Original book value of goodwill
In RMB
The invested entity or items Opening balance Increase during the year Decreased during the year Closing balance
Weifu Tianli 1,784,086.79 1,784,086.79
Total 1,784,086.79 1,784,086.79
(2) Goodwill depreciation reserves
Nil
Other note
Goodwill of the Weifu Tianli: the Company controlling and combine Weifu Tianli by increasing the capital, the
goodwill is the number that combination cost greater than the fair value of identical net assets of Weifu Tianli
16. Long-term unamortized expenses
In RMB
Item Opening balance increased in the Period Amortized in the Period Other decrease Closing balance
Remodeling costs etc. 1,753,413.10 2,265,544.82 1,049,187.11 2,969,770.81
Total 1,753,413.10 2,265,544.82 1,049,187.11 2,969,770.81
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
17. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Bad debt reserves 18,591,825.81 2,834,842.52 17,188,291.28 2,742,375.77
Inventory falling price reserves 240,520,904.57 37,599,678.75 229,240,920.42 36,065,833.01
Fixed assets depreciation reserves 20,459,349.51 3,285,096.52 20,616,046.44 3,283,362.97
Construction in process depreciation reserves 3,566,375.62 534,956.34 6,916,375.62 1,037,456.34
Intangible assets depreciation reserves 16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
Financial assets available for sale depreciation
10,000,000.00 1,500,000.00 10,000,000.00 1,500,000.00
reserves
Deferred income 447,676,720.31 67,151,508.04 474,885,844.12 71,232,876.62
Internal un-realized profit 28,149,575.30 4,972,350.93 40,535,949.54 6,461,650.41
Payable salary, accrued expenses etc. 526,642,684.53 81,166,909.39 526,809,750.78 81,793,955.82
Depreciation assets, amortization difference 9,768,298.31 1,465,244.74 13,486,412.32 2,022,961.84
Deductible loss of subsidiary 10,394,711.11 1,559,206.67
Total 1,322,022,633.96 203,007,622.23 1,366,721,201.63 210,196,714.45
(2) Deferred income tax liabilities un-offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Asset evaluation increment for combination not
13,491,849.42 2,023,777.40 14,232,069.40 2,134,810.40
under the same control
Change of fair value for the financial assets
102,552,300.00 15,382,844.99 170,262,150.00 25,539,322.49
available for sale
Total 116,044,149.42 17,406,622.39 184,494,219.40 27,674,132.89
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item Trade-off between the Ending balance of Trade-off between the Opening balance of
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities assets or liabilities after assets and liabilities at assets or liabilities after
off-set period-begin off-set
Deferred income tax assets 203,007,622.23 210,196,714.45
Deferred income tax liabilities 17,406,622.39 27,674,132.89
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Bad debt reserves 330,881.07 308,857.00
Inventory falling price reserves 21,786,977.53 26,982,368.16
Loss of subsidiary of Weifu ITM etc. 160,376,822.42 188,242,036.00
Fixed assets depreciation reserves 34,463,785.32 14,972,181.55
Provision for impairment of financial assets available for sale 49,433,106.95 49,433,106.95
Total 266,391,573.29 279,938,549.66
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2017 12,490,509.17 Weifu ITM and other subsidiaries have operating losses
2018 23,365,456.08 24,828,326.76 Weifu ITM and other subsidiaries have operating losses
2019 35,159,237.40 35,159,237.40 Weifu ITM and other subsidiaries have operating losses
2020 44,811,748.35 69,683,006.19 Weifu ITM and other subsidiaries have operating losses
2021 46,080,956.48 46,080,956.48 Weifu ITM and other subsidiaries have operating losses
2022 10,959,424.11 Weifu Mashan and other subsidiaries have operating losses
Total 160,376,822.42 188,242,036.00 --
18. Other non-current assets
In RMB
Item Closing balance Opening balance
Engineering equipment paid in advance 195,088,675.74 102,671,641.12
Total 195,088,675.74 102,671,641.12
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
19. Short-term loans
(1) Types of short-term loans
In RMB
Item Closing balance Opening balance
Debt of honor 243,000,000.00 150,000,000.00
Total 243,000,000.00 150,000,000.00
(2) Overdue short-term loans without payment
Nil
20. Notes payable
In RMB
Type Closing balance Opening balance
Trade acceptance 947,976,759.10 837,045,962.78
Total 947,976,759.10 837,045,962.78
Notes expired at year-end without paid was 0.00 Yuan.
21. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Within 1 year 2,452,140,381.86 1,636,965,593.87
1-2 years 43,524,905.85 16,364,736.14
2-3 years 2,318,008.01 14,228,347.57
Over 3 years 72,972,910.11 61,691,678.35
Total 2,570,956,205.83 1,729,250,355.93
(2) Important account payable with account age over one year
Nil
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
22. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 34,272,416.20 38,892,005.51
1-2 years 7,271,092.26 1,416,022.00
2-3 years 346,383.11 1,136,183.04
Over 3 years 930,344.50 1,539,142.29
Total 42,820,236.07 42,983,352.84
(2) Important account received in advance with account age over one year
Nil
23. Wages payable
(1) Wages payable
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
I. Short-term compensation 136,636,786.19 945,065,740.44 934,258,260.70 147,444,265.93
II. Post-employment welfare- defined
36,740,154.48 142,692,020.99 145,132,773.57 34,299,401.90
contribution plans
III. Dismissed welfare 3,020,952.05 4,095,398.78 3,718,708.67 3,397,642.16
IV. Other welfare due within one year 40,630,779.35 155,567,668.94 74,528,448.29 121,670,000.00
V. Other short-term welfare-Housing
subsidies, employee benefits and 13,643,597.51 9,800,000.00 2,476,230.21 20,967,367.30
welfare funds
Total 230,672,269.58 1,257,220,829.15 1,160,114,421.44 327,778,677.29
(2) Short-term compensation
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
1. Wages,bonuses,allowances and subsidies 117,735,616.49 758,653,597.63 748,243,755.27 128,145,458.85
2. Welfare for workers and staff 64,954,528.63 64,954,528.63
3. Social insurance 8,302,424.95 58,069,961.68 57,729,505.96 8,642,880.67
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Including: Medical insurance 6,437,720.69 47,013,312.48 46,701,998.15 6,749,035.02
Work injury insurance 1,238,371.21 7,442,985.84 7,460,250.49 1,221,106.56
Maternity insurance 626,333.05 3,613,663.36 3,567,257.32 672,739.09
4. Housing accumulation fund 1,059,081.00 50,678,562.06 50,675,632.06 1,062,011.00
5. Labor union expenditure and
9,539,663.75 12,709,090.44 12,654,838.78 9,593,915.41
personnel education expense
Total 136,636,786.19 945,065,740.44 934,258,260.70 147,444,265.93
(3) Defined contribution plans
In RMB
Item Opening balance Increase during the year Decreased during the year Item
1. Basic endowment insurance 20,102,944.48 106,813,915.51 109,098,616.35 17,818,243.64
2. Unemployment insurance 2,044,905.57 3,050,672.12 3,431,094.43 1,664,483.26
3. Enterprise annuity 14,592,304.43 32,827,433.36 32,603,062.79 14,816,675.00
Total 36,740,154.48 142,692,020.99 145,132,773.57 34,299,401.90
Other explanation:
1. Reclassification of long-term staff remuneration payable:
①An amount of RMB83,610,000.00 in short-term remuneration is reclassified into long-term staff remuneration
payable, which represents the incentive fund of RMB83,610,000.00 provided for in this period.
② An amount of RMB168,184,763.19 is recorded in post office benefits - defined benefit plan and incentive fund
payable within one year, which represents the difference between the incentive fund of RMB136,200,000.00
expected to be paid in 2018 and the beginning balance of incentive fund payable within one year, post office
benefits-defined benefit plan and the actual amount paid in this period.
2. Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government
authorities by laws. Under these plans, the Company makes monthly contribution to these plans based on 19% and
0.5% of the social insurance contribution base for 2017 respectively. 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 assets when occurs. Found more of enterprise annuity in Note XVI-4.” Annuity
plan”
3. Dismiss welfare
The wages payable resulted from the implementation of inner retirement plan, the amount will pay one year later
RMB 2,207,191.56 will re-classified into the long-term wage payable.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
24. Tax payable
In RMB
Item Closing balance Opening balance
Value-added tax 26,675,795.24 8,586,317.81
Enterprise income tax 53,333,508.69 43,081,662.09
Individual income tax 3,102,645.73 2,510,107.17
Urban maintenance and construction tax 1,873,973.56 619,918.29
Educational surtax 1,338,552.54 442,680.76
Other (including stamp tax and local funds) 7,545,214.60 7,394,236.76
Total 93,869,690.36 62,634,922.88
25. Interest payable
In RMB
Item Closing balance Opening balance
Long-term borrowing interest for installment 79,826.39 87,083.33
Interest payable for short-term loans 322,102.04 350,854.94
Total 401,928.43 437,938.27
Major overdue interest: Nil
26. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Closing balance Opening balance
Deposit and margin 20,977,476.26 53,757,126.76
Social insurance and reserves funds that withholding 7,689,385.68 6,213,209.51
Intercourse funds of units 25,754,545.98 25,512,145.98
Other 8,516,532.98 11,032,003.34
Total 62,937,940.90 96,514,485.59
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Total 4,500,000.00 --
27. Non current liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term loans due within one year 10,000,000.00
Total 10,000,000.00
28. Long-term loans
(1) Classification of long-term loans
In RMB
Item Closing balance Opening balance
Guaranteed loan 45,000,000.00 60,000,000.00
Total 45,000,000.00 60,000,000.00
29. Long-term account payable
(1) Listed by nature
In RMB
Item Closing balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau [note ①] 1,140,000.00 1,140,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ②] 1,250,000.00 1,250,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ③] 1,230,000.00 1,230,000.00
Loan transferred from treasury bond [note ④] 1,356,363.00 1,695,454.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑤] 2,750,000.00 2,750,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑥] 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑦] 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑧] 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau[note ⑨] 2,740,000.00 2,740,000.00
Total 17,496,363.00 17,835,454.00
Other explanation:
[Note ① To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 20 October 2005 to 20 October 2020. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
[Note ②] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 20 July 2006 to 20 July 2021. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
[Note ③] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 17 September 2007 to 17 September 2022. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note ④] Loan transferred from treasury bond: Weifu Jinning received RMB1.87 million Yuan of special funds
from budget of the central government, and RMB1.73 million Yuan of special funds from budget of the local
government. The non-operating income transferred in was 1.87 million Yuan in 2011 which was confirmed not
to return, if the Company pays back special funds of 3.73 million Yuan to the local government in 11 years
since 2012, then the Company needs to repay the principal of 339,091.00 Yuan each year.
[Note ⑤] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note ⑥] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 October 2009 to 27 October 2024. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note ⑦] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 27 December 2010 to 27 December 2025. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note ⑧] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 28 December 2011 to 28 December 2026. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note ⑨] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the
term is from 18 December 2013 to 18 December 2028. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
30. Long-term employee payable
(1) Long-term employee payable
In RMB
Item Closing balance Opening balance
I. Post-employment welfare-defined contribution plans net indebtedness
II. Dismiss welfare 13,782,896.07 11,575,704.51
III. Other long-term welfare 16,665,236.81 101,240,000.00
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Total 30,448,132.88 112,815,704.51
(2) Change of defined benefit plans
Nil
31. Special payable
In RMB
Opening Increase during Decreased Closing
Item Causes
balance the year during the year balance
Removal compensation of subsidiary Weifu
18,265,082.11 18,265,082.11
Jinning [note ]
Total 18,265,082.11 18,265,082.11 --
Other explanation:
Note: Removal compensation of subsidiary Weifu Jinning: 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 Weifu Jingning 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 Weifu Jinning and House Expropriation Management Office of Xuanwu District, Nanjing City, RMB
19.7067 million in total are compensate, including operation losses from lessee RMB 1.4416 million in total. The
above compensation was received in last period and is making up for the losses from lessee, and the above lands
and property have not been collected up to 31 December 2017.
32. Deferred income
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance Causes
year year
Government grand 479,211,845.88 10,964,600.00 38,894,724.11 451,281,721.77 收到财政拨款
Total 479,211,845.88 10,964,600.00 38,894,724.11 451,281,721.77 --
Item with government grants involved:
In RMB
Amount
reckoned Amount Cost Othe
Assets
New grants in in reckoned into reduction r
Item Opening balance Ending balance related/Incom
the Period non-operat other income in the chan
e related
ion in the period period ges
revenue
Industrialization Assets
4,326,001.76 721,000.30 3,605,001.46
project for injection related/Incom
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
VE pump system e related
with electronically
controlled high
pressure for
less-emission diesel
used
Appropriation on
reforming of
production line
technology and
R&D ability of 7,100,000.00 7,100,000.00 Assets related
common rail system
for diesel by
distributive
high-voltage
Fund of industry Income
60,400,000.00 60,400,000.00
upgrade (2012) related
Fund of industry Income
60,520,000.00 60,520,000.00
upgrade (2013) related
Appropriation on
central basic
3,571,428.58 714,285.71 2,857,142.87 Assets related
construction
investment
R&D and
industrialization of
the high pressure
variable pump of the 11,500,000.00 1,543,095.28 9,956,904.72 Assets related
common rail system
of diesel engine for
automobile
Research institute of
motor vehicle
exhaust 4,000,000.00 883,874.66 3,116,125.34 Assets related
aftertreatment
technology
Fund of industry Income
36,831,000.00 36,831,000.00
upgrade (2014) related
New-built assets
compensation after
196,590,113.55 25,638,810.77 170,951,302.78 Assets related
the removal of
parent company
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Fund of industry Income
40,000,000.00 40,000,000.00
upgrade (2016) related
Guiding capital for
the technical reform
from State Hi-Tech 9,740,000.00 9,740,000.00 Assets related
Technical
Commission
Implementation of
the variable
cross-section 16,970,000.00 4,531,768.46 12,438,231.54 Assets related
turbocharger for
diesel engine
Demonstration
project for
3,000,000.00 1,191,193.36 1,808,806.64 Assets related
intelligent
manufacturing
Assets related
Other 27,663,301.99 7,964,600.00 3,670,695.57 31,957,206.42 Income
related
Total 479,211,845.88 10,964,600.00 38,894,724.11 451,281,721.77 --
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low
emissions diesel: in September 2009, Weifu Jinning signed “Project Contract of Technology Outcome
Transferring Special Capital in Jiangsu Province” with Nanjing Technical Bureau, according to which Weifu
Jinning received appropriation RMB 6.35 million in 2009, RMB 4.775 million received in 2010 and RMB 0.875
million received in 2011. According to the contract, the attendance date of this project was: from October of 2009
to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed
assets investment which are belongs to the government grand with assets/income concerned. In 2013, accepted by
the science & technology agency of Jiangsu Province, and RMB 4,789,997.04 with income related was reckoned
into current operation revenue directly; the RMB 7,210,002.96 with assets related was amortized during the
predicted service period of the assets, and RMB 721,000.30 amortized in the Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for
diesel engine use and production line technological transformation project: according to XCJ No. [2010] 59, the
Company has received special funds of 7.1 million Yuan appropriated by Finance Bureau of Wuxi New District in
2011 and used for the Company’s research and development ability of distributive high-pressure common rail
system for diesel engine use and production line technological transformation project; this appropriation belongs
to government subsidies related to assets, and will be amortized according to the depreciation process of the
underlying assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
Document Xi Xin Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for
industry upgrading this year.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi
Xin Guan Jing Fa [2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the
Company received funds of 60.52 million Yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the
document Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment of
capital construction from the central government in 2012. The project has passed the acceptance check in current
period, this appropriation should be amortized within the surplus service life of current assets, and amortization
amount of current period is 714,285.71 Yuan.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for
automobile: the Company received appropriated for the project in 2013 with 8.05 million Yuan in line with
documents of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong
Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao [2014] No.58, Xi Ke Ji [2014] No. 246 and Xi
Cai Gong Mao [2014] No.162. Received RMB 3 million in 2014 and RMB 0.45 million in 2015; and belongs to
government grant with assets concerned, and shall be amortized according to the depreciation process, amount of
1,543,095.28 Yuan amortize in the year.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader has
applied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi
Science and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. This
declaration has been approved by Wuxi Huishan Science and Technology Bureau and Wuxi Science and
Technology Bureau in 2012, and the company has received appropriation of 2.4 million Yuan in 2012, and
received appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related to
assets and will be amortized according to the depreciation process, amount of 883,874.66 Yuan amortize in the
year.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and
Xi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated for
industry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation received
by the Company, and will be amortized according to the depreciation of new-built assets, amount of
25,638,810.77 Yuan amortize in the year.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and
Xi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in
2016.
(11) Guilding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the
document Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuan
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
for the guiding capital of technical reform (1st batch) from Wuxi for year of 2016, which included in the
government subsidy with assets-concerned, and will amortized according to the depreciation process after
acceptance
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document
YCZ Fa[2016] NO.623 and “Strong Industrial Base Project Contract for year of 2016”, subsidiary Weifu Tianli
received a specific subsidy of 16.97 million Yuan, the fund supporting strong industrial base project
(made-in-China 2025) of central industrial transformation and upgrading 2016 from Ministry of Industry and
Information Technology; and belongs to government grant with assets concerned, and shall be amortized
according to the depreciation process, amount of 4,531,768.46 Yuan amortize in the year.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent
Manufacturing Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 Yuan
was granted by relevant government authority in Huishan district to our subsidiary Weifu Leader in 2017 to be
utilized for transformation and upgrade of Weifu Leader’s intelligent manufacturing facilities. This subsidy
belongs to government grant related to assets which shall be amortized based on the depreciation progress of the
assets. Amortization for the year amounts to 1,191,193.36 Yuan.
33. Share capital
In RMB
Changeduringthe year(+,-)
Opening balance New shares Shares transferred from Closing balance
Bonus share Other Subtotal
issued capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
34. Capital reserve
In RMB
Item Opening balance Increase during the year Decreased during the year Closing balance
Capital premium (Share capital
3,372,647,413.97 3,372,647,413.97
premium)
Other Capital reserves 45,193,988.92 45,193,988.92
Total 3,417,841,402.89 3,417,841,402.89
35. Other consolidated income
In RMB
Current period
Less: written in Belong to Closing
Item Opening balance Account before
other Less : income tax Belong to parent minority balance
income tax in the comprehensive expense company after taxshareholder
income in s after tax
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
year previous period
and carried
forward to gains
and losses in
current period
I. Other
comprehensive
income items which
will not be
reclassified
subsequently to
profit or loss
II. Other
comprehensive
income items which
144,722,827.51 -43,364,100.00 24,345,750.00 -10,156,477.50 -57,553,372.50 87,169,455.01
will be reclassified
subsequently to
profit or loss
Gains or losses
arising from
changes in fair value 144,722,827.51 -43,364,100.00 24,345,750.00 -10,156,477.50 -57,553,372.50 87,169,455.01
of available-for-sale
financial assets
Total other
144,722,827.51 -43,364,100.00 24,345,750.00 -10,156,477.50 -57,553,372.50 87,169,455.01
consolidated income
Other explanation, including the adjustment on initial recognization for arbitrage items that transfer from the effective part of cash
flow hedge profit/loss
Nil
36. Reasonable reserve
In RMB
Item Opening balance Increase during the period Decrease during this period Closing balance
Safety production costs 89,005.19 17,947,661.67 18,034,059.93 2,606.93
Total 89,005.19 17,947,661.67 18,034,059.93 2,606.93
Other explanation, including changes and reasons for changes:
According to the “management method of extraction and use the safety production costs for enterprise” Cai Qi
[2012] No.16 jointly issued by Ministry of Finance and Administration of Production Safety Supervision, the
provision is based on the actual operation revenue of last period, extract on average month-by-month basis
through excess regressive method
Among the above safety production costs, including the safety production costs accrual by the Company in line
with regulations and the parts enjoy by shareholders of the Company in safety production costs accrual by
subsidiary in line with regulations.
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
37. Surplus reserves
In RMB
Item Opening balance Increase during the period Decrease during this period Closing 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:
Withdrawal of the statutory surplus reservs: Pursuit to the Company Law and Article of Association, the
Company extracted statutory surplus reserve on 10 percent of the net profit. No more amounts shall be withdrawal
if the accumulated statutory surplus reserve takes over 50 percent of the registered capital.
38. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last year before adjustment 7,845,639,990.88 6,677,890,958.83
Retained profits at the beginning of the year after adjustment 7,845,639,990.88 6,677,890,958.83
Add: The net profits belong to owners of patent company of this period 2,571,339,490.04 1,672,224,317.05
Common dividend payable 605,370,342.00 504,475,285.00
Retained profit at period-end 9,811,609,138.92 7,845,639,990.88
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
39. Operating income and cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main operating 8,535,599,504.73 6,420,982,285.26 6,043,223,608.00 4,586,960,342.60
Other operating 481,680,655.07 340,747,113.10 379,476,791.27 297,497,783.27
Total 9,017,280,159.80 6,761,729,398.36 6,422,700,399.27 4,884,458,125.87
无锡威孚高科技集团股份有限公司 2017 年年度报告全文
40. Business tax and surcharges
In RMB
Item Current period Last period
City maintenance and construction tax 27,342,047.81 18,334,084.89
Educational surtax 19,529,544.78 13,095,739.09
Property tax 16,168,030.42 10,183,124.84
Land use tax 6,297,452.61 4,463,446.01
Vehicle use tax 38,597.80 697,078.00
Stamp duty 3,033,552.04 839,312.20
Other taxes 3,915.02 106,191.33
Total 72,413,140.48 47,718,976.36
41. Sales expenses
In RMB
Item Current period Last period
Salary and fringe benefit 34,445,822.91 31,879,042.58
Consumption of office materials and business travel charge 11,190,696.17 9,715,093.68
Transportation charge 38,950,920.39 35,177,995.06
Warehouse charge 12,028,839.44 15,400,576.80
Three-guarantee fee 75,299,
