Weifu High-Technology Group Co., Ltd.
Semi-Annual Report 2018
August 2018
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to asthe Company) hereby confirm that there are no any fictitious statements,misleading statements, or important omissions carried in this report, and shalltake all responsibilities, individual and/or joint, for the reality, accuracy andcompletion of the whole contents.
Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger ofaccounting works and Ou Jianbin, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of 2018Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.In this report, details of relevant risks and countermeasures in operation have
described, found more in relevant content in the Report. Concerning theforward-looking statements with future planning involved in the Report, they donot constitute a substantial commitment for investors. The China SecuritiesJournal, Securities Times, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn)are the information disclosure media appointed by the
Company, all information should be prevail on the above mentioned media,investors are advice to pay attention on investment risks.
The Company has no plan of cash dividend distributed, no cash bonus andcapitalizing of common reserves either carried out.
Contents
Section I Important Notice, Contents and Paraphrase ...... 2
Section II Company Profile and Main Finnaical Indexes ...... 5
Section III Summary of Company Business ...... 8
Section IV Discussion and Analysis of Operation ...... 11
Section V Important Events ...... 18
Section VI Changes in shares and particular about shareholders ...... 27
Section VII Preferred Stock……………………………………………………………………….31Section VIII Particulars about Directors, Supervisors and Senior Executives…. ..................... 32
Section IX Corporate Bonds ...... 35
Section X Financial Report ...... 36
Section XI Documents Available for Reference ...... 160
Paraphrase
Items | Refers to | Contents |
Company, The Company, Weifu High-technology | Refers to | Weifu High-Technology 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 Leader | Refers to | Wuxi Weifu Leader Catalytic Converter Co., Ltd. |
Weifu Jinning | Refers to | Nanjing Weifu Jinning Co., Ltd. |
Weifu Tianli | Refers to | Ningbo Weifu Tianli Supercharging Technique Co., Ltd. |
Weifu Environment | Refers to | Wuxi Weifu Environment Catalyst Co.,Ltd. |
Weifu Precision Machinery | Refers to | Weifu Precision Machinery Manufacturing Co., Ltd. |
Zhonglian Electronic | Refers to | Zhonglian Automobile Electronic Co., Ltd. |
Protean | Refers to | Protean Holdings Corp. |
CSRC | Refers to | China Securities Regulatory Commission |
Reporting period | Refers to | 1 January 2018 to 30 June 2018 |
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 | ||
Chinese name of the Company | 无锡威孚高科技集团股份有限公司 | ||
Short form of the Company in Chinese (if applicable) | 威孚高科 | ||
Foreign name of the Company (if applicable) | WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD. | ||
Short form of foreign name of the Company (if applicable) | WFHT | ||
Legal representative | Chen Xuejun |
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 |
web @ weifu.com.cn | web @ weifu.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2017.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2017
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Current period | Same period of last year | Changes over last year | |
Operating income (RMB) | 4,960,801,890.99 | 4,728,125,599.02 | 4.92% |
Net profit attributable to shareholders of the listed company(RMB) | 1,545,242,704.92 | 1,325,922,029.56 | 16.54% |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 1,378,865,501.57 | 1,208,264,288.81 | 14.12% |
Net cash flow arising from operating activities(RMB) | 378,923,690.48 | 352,401,241.52 | 7.53% |
Basic earnings per share (RMB/Share) | 1.53 | 1.31 | 16.79% |
Diluted earnings per share (RMB/Share) | 1.53 | 1.31 | 16.79% |
Weighted average ROE | 9.92% | 9.84% | 0.08% |
Period-end | Period-end of last year | Changes over period-end of last year | |
Total assets (RMB) | 21,920,788,842.86 | 20,231,006,224.36 | 8.35% |
Net assets attributable to shareholder of listed company (RMB) | 15,111,165,491.74 | 14,835,673,669.75 | 1.86% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting 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 (InternationalAccounting 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 accountingrules 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 orChinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 1,421,091.02 | |
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 17,700,030.17 | |
Profit and loss of assets delegation on others’ investment or management | 159,801,630.73 | |
Held transaction financial asset, gains/losses of changes of fair values from transaction financial liabilities, and investment gains from disposal of transaction financial asset, transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company | 17,370,816.75 | |
Switch back of provision for depreciation of account receivable which was singly taken depreciation test | 512,580.00 | |
Other non-operating income and expenditure except for the aforementioned items | 73,701.23 | |
Less: Impact on income tax | 29,876,415.88 | |
Impact on minority shareholders’ equity (post-tax) | 626,230.67 | |
Total | 166,377,203.35 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities 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 ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
(i) Main business of the Company1. The Company belongs to auto parts industry, and its main business products include diesel fuel injection systemproducts, 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 typesof trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only makesproducts matching with the main engines used at home but also exports some products to the Americas, SoutheastAsia, 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 plantsand some six-cylinder diesel engine manufacturers, and meet the needs of the light and heavy commercialvehicles and some passenger cars, and meets the national emission standards.3. Business model of the CompanyThe Company follows the operating philosophy of making competitive products, creating famous brands, strivingfor first choices, and creating value for the users, implements the business model that parent company unifies themanagement and subsidiaries decentralize the production. Namely, the group company is responsible for makingstrategic development planning and operation targets, and making the unified management, instruction andassessment for the finance, significant personnel management, core raw materials, quality control, and technologyof the subsidiaries. The subsidiaries arrange production based on the order management model of market, whichmakes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the Company’s main business and business model have no significant changes.
II. Major changes in main assets
1. Major changes in main assets
Major assets | Note of major changes |
Equity assets | No major change |
Fixed assets | No major change |
Intangible assets | No major change |
Construction in progress | Amount at end of the Period has major growth over that of year-beginning, mainly due to the increase of investment in equipment for technology reformation |
2. Main overseas assets
√Applicable □ Not applicable
Specific content of the asset | Cause of formation | Asset size | Location | Operation model | Control measures to guarantee asset security | Income status | The proportion of overseas assets to the company’s net assets | Whether there are significant risks of impairment? |
The Company paid investment of 24 million US dollars on May 21, 2018 to become a shareholder of Protean E-round preferred stock. | For the overall arrangement of the company’s future development, the 15th meeting of the eighth board of directors of the company reviewed and approved the Proposal on Foreign Investment. The company will invest 30 million US dollars in the E-round preferred stock issued by Protean and the two parties will establish a Sino-foreign joint venture in China. According to the investment cooperation agreement, the company paid the initial investment of 24 million US dollars on May 21, 2018. The company obtained the equity certificate of subscribing 10,212,765 shares of E-round preferred stock issued by Protean and became a shareholder of the Protean E-round preferred stock with the equity certificate number of Number E-1. | The Company invested US$24 million and obtained the stock right of subscribing 10,212,765 shares of E-round preferred stock issued by Protean. | the United States | Equity of preferred stock | The Company will pay full attention to changes in the industry and the market, give play to its own advantages, and actively prevent and resolve various risks. | No | 1.01% | No |
III. Core Competitiveness Analysis
The Company is a high technology enterprise with a number of patented technologies. For years, rewarded asNational Enterprise Technical Center, Post-doctor Scientific Research Station, Jiangsu Provincial Engineering andTechnology Research Center, Industrialization Base of National Hi-Tech Research and DevelopmentAchievement, the Company has taken the research and development on the three major sections of Fuel InjectionSystem, Automobile Exhaust After Treatment System and Air Intake System as the top priority, has activelyworked on technology upgrading and innovation, made research and development on the forefront industries ofnew energy and new technology, taken active steps to make a layout for future business, all of which have madethe Company take the leading position in industry with distinct technology advantages.Core competitiveness of the Company has no major changes in the Period
Section IV Discussion and Analysis of Operation
I. Overview
Since the beginning of this year, the company has continued to seize market opportunities and follow the trend,continuously promoted the improvement of internal management, strengthened the internal risk control, improved
the early warning mechanism, and achieved the steady growth of the company’s comprehensive economic
benefits. During the period, the Company achived an operation revenue of 4.961 billion Yuan with a y-o-y growthof 4.92%; profit amounted to 1.681 billion Yuan, an increase of 14.94% from a year earlier; the net profitattributable to owners of parent company amounted as 1.545 billion Yuan, an increase of 16.54% over same
period of last year.
Main work in the first half of the year1. Ensure the sustainable development of the traditional business market. Grasp the product market development,ensure related product projects to be approved by the main engine plants; focus on production delivery, the outputof common rail products in the first half of the year reached a new high, and the supercharger products also had agood growth;2. Accelerate the layout of new business and the implementation of projects. Plan and lay out new business,launch the cooperation project of hub motor business with Protean, the first delivery is 24 million US dollars, thejoint venture project is progressing in an orderly manner.3. Continue to promote the optimization and improvement of internal management. Sort out the management dutyand function, optimize the organization; build a financial sharing center, plan and design the financialtransformation; establish a group procurement sharing platform project to standardize, optimize and upgrade the
existing system processes. Strengthen the security construction of the group’s information system and further
improve the human resources management system.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Operation”
Change of main financial data on a y-o-y basis
In RMB
Current period | Same period of last year | y-o-y changes (+,-) | Reasons | |
Operation income | 4,960,801,890.99 | 4,728,125,599.02 | 4.92% | |
Operation cost | 3,889,590,289.69 | 3,736,290,938.86 | 4.10% | |
Sales expenses | 106,347,559.85 | 71,559,262.66 | 48.61% | Increase of Three Packs of policy for sales and salary |
Administrative expenses | 413,983,378.78 | 399,568,734.73 | 3.61% | |
Financial cost | -1,776,908.37 | 1,688,051.32 | -205.26% | 1. Exchange loss has declined from a year earlier for change of exchange rate; and 2. interest costs increased due to the bank loans growth on a y-o-y basis |
Income tax expense | 102,927,297.96 | 94,025,933.36 | 9.47% | |
R&D investment | 177,443,968.15 | 140,532,863.22 | 26.27% | |
Net cash flow arising from operation activities | 378,923,690.48 | 352,401,241.52 | 7.53% | |
Net cash flow arising from investment activities | -592,455,421.53 | -2,563,680,842.64 | ||
Net cash flow arising from financing activities | 106,793,020.26 | 14,285,552.13 | 647.56% | Net cash inflow from bank loans increased |
Net increase of cash and cash equivalent | -105,928,538.96 | -2,200,012,859.87 |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting periodConstitution of main business
In RMB
Operating revenue | Operating cost | Gross profit ratio | Increase or decrease of operating revenue over same period of last year | Increase or decrease of operating cost over same period of last year | Increase or decrease of gross profit ratio over same period of last year | |
According to industries | ||||||
Auto parts | 4,725,759,054.05 | 3,682,028,566.53 | 22.09% | 5.47% | 4.42% | 0.79% |
According to products | ||||||
Auto fuel injection system | 2,874,988,054.10 | 2,069,258,205.88 | 28.03% | -1.31% | -3.84% | 1.90% |
Post-processing system | 1,608,955,867.94 | 1,439,376,887.32 | 10.54% | 16.22% | 16.23% | -0.01% |
Induction system | 241,815,132.01 | 173,393,473.33 | 28.30% | 31.89% | 27.44% | 2.51% |
According to region | ||||||
Domestic | 4,538,658,375.69 | 3,498,606,218.04 | 22.92% | 4.99% | 3.65% | 1.00% |
Overseas | 187,100,678.36 | 183,422,348.49 | 1.97% | 18.52% | 21.60% | -2.48% |
III. Analysis of non-main business
√Applicable □Not applicable
In RMB
Amount | Ratio in total profit | Note | Whether be sustainable | |
Investment income | 1,149,033,168.39 | 68.36% | Income mainly from the two joint ventures the Company (Bosch Automobile Diesel and Zhonglian Electronic) | The Company’s joint ventures Bosch Automobile Diesel and Zhonglian Electronics’ joint venture- Lianhe Electronic have stable production and operation both on a sustained basis |
Asset impairment | -10,087.38 | |||
Non-operating income | 3,881,128.87 | 0.23% | ||
Non-operating expense | 2,327,872.38 | 0.14% |
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end | Period-end of last year | Ratio changes | Notes of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 3,042,709,775.25 | 13.88% | 1,846,838,076.57 | 9.79% | 4.09% | Net inflow from operation activity increased and bonus from joint venture |
Account receivable | 2,374,955,337.33 | 10.83% | 2,028,796,617.26 | 10.75% | 0.08% | |
Inventory | 1,241,695,545.38 | 5.66% | 1,134,167,227.47 | 6.01% | -0.35% | |
Investment property | 22,761,528.91 | 0.10% | 24,344,196.10 | 0.13% | -0.03% | |
Long-term equity investment | 4,261,256,191.08 | 19.44% | 3,381,642,657.07 | 17.92% | 1.52% | |
Fix assets | 2,625,557,400.23 | 11.98% | 2,443,323,924.72 | 12.95% | -0.97% | |
Construction in process | 195,609,102.08 | 0.89% | 137,789,424.89 | 0.73% | 0.16% | Investment of equipment for technology capacity expansion |
Short-term loans | 359,000,000.00 | 1.64% | 185,000,000.00 | 0.98% | 0.66% | Short-term loans from subsidiary increased |
Long-term loans | 45,000,000.00 | 0.21% | 57,500,000.00 | 0.30% | -0.09% |
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Items | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Amount of sale in the period | Amount at period-end |
Financial assets | |||||||
3. Financial assets available for sale | 266,376,600.00 | -59,786,808.00 | 28,866,874.66 | 37,880,000.00 | 178,332,264.00 | ||
Subtotal of financial assets | 266,376,600.00 | -59,786,808.00 | 28,866,874.66 | 37,880,000.00 | 178,332,264.00 | ||
Above total | 266,376,600.00 | -59,786,808.00 | 28,866,874.66 | 37,880,000.00 | 178,332,264.00 | ||
Financial liabilities | 0.00 | 0.00 |
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
Item | Book value at period-end | Restriction reasons |
Notes receivable | 389,454,825.85 | Notes pledge for bank acceptance |
Monetary fund | 99,317,091.42 | Cash deposit for bank acceptance |
Monetary fund | 881,868.57 | Court freeze |
Financial assets available for sale | 166,608,867.78 | In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of Guangdong Shenzhen Intermediate People's Court, the property with the value of 217 million Yuan under the name of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd. was frozen. As of the end of the reporting period, 4.71 million shares of Miracle Logistics and 11,739,102 shares of SDEC held by the Company were frozen. |
Total | 656,262,653.62 | -- |
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
Variety of securities | Code of securities | Short form of securities | Initial investment cost | Accounting measurement model | Book value at the beginning of the period | Changes in fair value of the current profit and loss | Cumulative fair value changes in equity | Current purchase amount | Current sales amount | Profit and loss in the Reporting Period | Book value at the end of the period | Accounting subject | Capital Source |
Domestic and foreign stocks | 600841 | SDEC | 199,208,000.00 | Measured by fair value | 186,966,000.00 | -36,754,908.00 | 10,791,072.16 | 37,880,000.00 | -36,754,908.00 | 121,953,564.00 | Financial assets available for sales | Own funds | |
Domestic and foreign stocks | 002009 | Miracle Logistics | 69,331,500.00 | Measured by fair value | 79,410,600.00 | -23,031,900.00 | 18,075,802.50 | -22,796,400.00 | 56,378,700.00 | Financial assets available for sales | Own funds | ||
Total | 268,539,500.00 | -- | 266,376,600.00 | -59,786,808.00 | 28,866,874.66 | 0.00 | 37,880,000.00 | -59,551,308.00 | 178,332,264.00 | -- | -- | ||
Disclosure date of securities investment approval of the Board | 2012-03-24 | ||||||||||||
2013-06-04 | |||||||||||||
Disclosure date of securities investment approval of the Shareholder Meeting (if applicable) |
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VI. Significant asset and equity sales
1. Significant asset sales
□ Applicable √ Not applicable
No significant assets being sold in the Period
2. Significant equity sales
□ Applicable √ Not applicable
VII. Analysis of the main 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
Company name | Type | Main business | Register capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
Weifu Leader | Subsidiary | Post processing system products | 502,596,300.00 | 3,537,070,508.71 | 1,631,298,114.97 | 1,589,176,188.66 | 82,487,470.88 | 76,364,083.43 |
Weifu Jinning | Subsidiary | Fuel injection system | 346,286,825.80 | 1,176,068,481.85 | 835,263,636.19 | 345,257,893.56 | 73,059,055.58 | 70,230,711.18 |
Bosch Automobile Diesel | Joint-stock company | Fuel injection system | USD241,000,000.00 | 12,124,233,285.95 | 7,229,298,166.49 | 8,713,485,959.51 | 2,410,025,921.13 | 2,076,330,091.90 |
Zhonglian Electronic | Joint-stock company | Gasoline system | 600,620,000.00 | 5,865,322,697.48 | 4,650,905,593.44 | 12,091,114.45 | 1,062,174,075.39 | 1,059,760,956.40 |
Subsidiary obtained and disposed in the Period
□Applicable √Not applicable
VIII. The structured subject controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
(1) Macro economy and market risksThe Company belongs to the auto parts industry which is closely related to the macroeconomic situation and theautomobile industry policies. At present, there are uncertainties in the world economy, if macro economy hassubstantial adjustments in the future, it will certainly have an impact on the growth rate of auto industry, andshows influence on operation production of the Company.
Countermeasures:
The Company will continue to strengthen the tracking research on macroeconomic situation and auto marketdynamics, and strengthen the new technology reserves, accelerate the adjustment of product structure, strengthenthe quality management, and improve the product market share based on policy guidance and market conditions; atthe same time, proactively laying out new business, exploit new market and strive to enhance core competitivenessof the Company and overall anti-risk capability.
(2) The risks of operation management and controlWith the rapid growth of the Company's assets and the continuous expansion of business scope, but there are stillpotential risks of operation management and control because of the large span and multiple links in personnel,business, finance, and capital management.Countermeasures:
The Company will continue to promote the optimization and improvement of internal management, focus onstrengthening the compliance management, further improve the system and processes, promote theinstitutionalization and standardization of Company management, and control the operational risks.
(3) The risks of fluctuations in raw material pricesThe company's main raw materials include various grades of steel, aluminum, precious metals, etc., the continuousrise in prices will bring the risks of rising costs to the company.Countermeasures: The company will pay close attention to the price trend of its main raw materials, and take theappropriate procurement opportunities for reasonable strategic reserves to resolve the risks of fluctuations in rawmaterial prices.
Section V. Important Events
I. AGM and extraordinary general meeting
1. AGM held in the period
Meeting | Type | Participation ratio for investors | Holding date | Disclosure date | Index |
Annual General Meeting of 2017 | AGM | 42.04% | 2018-06-27 | 2018-06-28 | Notice No.: 2018-021 released on Juchao Website (www.cninfo.com.cn) |
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves in the period
□ Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
III. Commitments that actual controller, shareholder, related parties, buyer and committed party as theCompany etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reportingperiod
□ Applicable √ Not applicable
There are no commitments that the actual controller, shareholder, related parties, buyer and committed party as the Company etc.have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No material lawsuits and arbitration in the reportingOther lawsuits
√Applicable □ Not applicable
Basic Situation of Litigation (Arbitration) | Amount Related to the Case (10 thousand Yuan) | Whether Formed Accrued Liabilities | Progress of Litigation (Arbitration) | Trial Results and Effects of Litigation (Arbitration) | Judgment Implementation of Litigation (Arbitration) | Disclosure Date | Disclosure Index |
On March 6, 2017, the company received the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 from Shenzhen Intermediate People's Court about the dispute case that the plaintiff applicant China Cinda Asset Management Co., Ltd. Shenzhen Branch (hereinafter referred to as “Cinda Company”) appealed the respondent Weifu High Technology and other seven respondents and the shareholders of the third party Hejun Company damaged the interests of corporate creditors, which adopted the | 21,703 | N | By the Company’s application for reconsideration, Shenzhen Intermediate People's Court deemed the total assets that Cinda Company applied for preservation to be RMB 217,027,697.23. The total value of 15.3 million shares of SDEC Stock and 4.71 million shares of Miracle Logistics held by the Company has exceeded the total assets that Cinda Company applied for preservation, therefore, 3,560,898 shares of SDEC Stock held by the Company was unfrozen. Up to the end of the reporting period, the Company’s frozen assets were as follows: 4.71 million shares of Miracles Logistics held by the Company and its fruits, and 11,739,102 shares of SDEC Stock held by the | This litigation will not affect the company’s daily operating activities for the time being | Not yet implemented | 2017-03-08 | (Announcement No.: 2017-002) published on www.cninfo.com.cn |
mandatory measures to freeze the assets with value of RMB 217 million under the name of the Company and other seven respondents and Hejun Company. Freeze 4.71 million shares of Miracle Logistics and 15.3 million shares of SDEC Stock held by the company. | company and its fruits. At present, this litigation is in the first instance (First trail on 24 September 2017 and follow-up session will held until further notice) | ||||||
The Company applied to the Futian Court for compulsory liquidation of Hejun Company. | 3,300 | N | The Company has applied to the Futian Court for compulsory liquidation of Hejun Company. Futian Court has made a civil ruling ((2017) Yue 0304 QS No. 5) which ruled to execute compulsory liquidation to Hejun Company. The Company will actively cooperate with the court to do the relevant liquidation work and safeguard the legitimate rights and interests of the Company. | This event will not affect the Company’s daily operating activities | Relevant works still in process | 2017-12-06 | (Announcement No.: 2017-023) published on www.cninfo.com.cn |
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicableThe Company did not has implementation of the Company’s stock incentive plan, employee stock ownership plan or other employee
incentive either
XII. Major related transaction1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
Weifu Precision Machinery | Associated company | Procurement of goods Goods | Goods | Based on fair value of the market price | Market price | 2,293.44 | 0.82% | 5,000 | N | Based on the contract terms | Market price | 2018-04-17 | Notice No.:2018-009 |
Bosch Diesel System | Associated company, Controlling subsidiary of German Bosch Company | Procurement of goods Goods | Goods | Based on fair value of the market price | Market price | 2,937.53 | 1.05% | 7,000 | N | Based on the contract terms | Market price | ||
Weifu Environment | Joint venture of Weifu Leader | Procurement of goods Goods | Goods | Based on fair value of the market price | Market price | 94,628.31 | 33.70% | 192,500 | N | Based on the contract terms | Market price | ||
Robert Bosch Company | Second largest shareholder of the Company | Procurement of goods Goods | Goods | Based on fair value of the market price | Market price | 6,235.01 | 2.22% | 14,300 | N | Based on the contract terms | Market price | ||
Weifu Precisio | Associated company | Sales of goods | Goods and | Based on fair | Market price | 277.28 | 0.06% | 300 | N | Based on the | Market price |
n Machinery | labors | value of the market price | contract terms | ||||||||
Bosch Diesel System | Associated company、Controlling subsidiary of German Bosch Company | Sales of goods | Goods and labors | Based on fair value of the market price | Market price | 160,001.35 | 32.25% | 300,000 | N | Based on the contract terms | Market price |
Weifu Environment | Joint venture of Weifu Leader | Sales of goods | Goods and labors | Based on fair value of the market price | Market price | 2,874.18 | 0.58% | 5,300 | N | Based on the contract terms | Market price |
Robert Bosch Company | Second largest shareholder of the Company | Sales of goods | Goods | Based on fair value of the market price | Market price | 31,946.17 | 6.44% | 77,220 | N | Based on the contract terms | Market price |
Weifu Environment | Joint venture of Weifu Leader | Rent receivable | Rent receivable | Based on fair value of the market price | Market price | 125.4 | 255 | N | Based on the contract terms | Market price | |
Bosch Diesel System | Associated company, Controlling subsidiary of German Bosch Company | Procurement of fixed assets | Procurement of fixed assets | Based on fair value of the market price | Market price | 4.27 | 5,000 | N | Based on the contract terms | Market price | |
Robert Bosch Company | Second largest shareholder of the Company | Technical service fee payable | Technical service fee payable | Based on fair value of the market price | Market price | 280.51 | 550 | N | Based on the contract terms | Market price |
Bosch Diesel System | Associated company, Controlling subsidiary of German Bosch Company | Labor service fee and technical service fee payable | Labor service fee and technical service fee payable | Based on fair value of the market price | Market price | 100 | N | Based on the contract terms | Market price | ||||
Total | -- | -- | 301,603.45 | -- | 607,525 | -- | -- | -- | -- | -- | |||
Detail of sales return with major amount involved | Not applicable | ||||||||||||
Report the actual implementation of the normal related transactions which were projected about their total amount by types during the reporting period(if applicable) | After deliberated and approved by AGM of 2017, it is estimated that the routine related transaction for year of 2018 amounting to 6075.25 million Yuan, actually 3016.0345 million Yuan in total occurred in reporting period, including: 1. It is estimated that purchasing goods and labors from related parties amounted as 2188 million Yuan at most for year of 2018, actually 1060.9429 million Yuan occurred in reporting period; 2. It is estimated that sales of goods and labors to related parties amounted as 3828.2 million Yuan at most for year of 2018, actually 1950.9898 million Yuan occurred in reporting period; 3. It is estimated that other related transactions with related parties amounted as 59.05 million Yuan at most for year of 2018, actually 4.1018 million Yuan occurred in reporting period; | ||||||||||||
Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
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.
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
XIV. 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
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) | ||||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) | ||||
Guarantee of the Company and the subsidiaries | ||||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) | ||||
Ningbo Tianli Turbo charging Technology Co., Ltd. | 2016-10-27 | 6,000 | 2016-11-11 | 5,000 | Joint liability guaranty | 5 | N | N | ||||
Total amount of approving guarantee for subsidiaries in report period (B1) | 0 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 5,000 | |||||||||
Total amount of approved guarantee for subsidiaries at the | 6,000 | Total balance of actual guarantee for subsidiaries at the end of | 5,000 |
end of reporting period (B3) | reporting period (B4) | |||||||||
Guarantee of the subsidiaries for the subsidiaries | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) | ||
Total amount of guarantee of the Company( total of three abovementioned guarantee) | ||||||||||
Total amount of approving guarantee in report period (A1+B1+C1) | 0 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 5,000 | |||||||
Total amount of approved guarantee at the end of report period (A3+B3+C3) | 6,000 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 5,000 | |||||||
The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 0.33% | |||||||||
Including: | ||||||||||
Amount of guarantee for shareholders, actual controller and its related parties(D) | 0 | |||||||||
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly(E) | 0 | |||||||||
Proportion of total amount of guarantee in net assets of the Company exceed 50%(F) | 0 | |||||||||
Total amount of the aforesaid three guarantees(D+E+F) | 0 | |||||||||
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | Not applicable | |||||||||
Explanations on external guarantee against regulated procedures (if applicable) | Not 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. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XV. Social responsibility
1.Major environmental issues
The company and its subsidiaries don’t belong to the key pollutant discharging units published by the
environmental protection department.
Protecting the environment is the corporate mission of Weifu High Technology. The company’s main business isexpanded around the energy saving and emission reduction of automobiles. At present, the company’s main
products have all met the emission regulations required by the state, and the company is actively preparingproducts that can meet the requirements of more stringent emission regulations. Saving resources and reducingconsumption are part of the core value of Weifu High Technology. On the one hand, it is conducive to theimprovement of enterprise efficiency, and at the same time, it is conducive to improving the resource utilizationrate of the whole society. Therefore, the company will continue to improve the resource utilization throughtechnological innovation.
The company resolutely implements the “three simultaneous” system of construction projects and strictly
performs the procedures for environmental impact assessment, approval, and acceptance of construction projects.In the process of new project and technical transformation, the new and old pollution can be solved together
according to the principle of technical feasibility and economic rationality, and the “three wastes” management
project must be designed, constructed and accepted at the same time as the main project.2. Precise poverty alleviation social responsibility
There are no precise poverty alleviation carried out in the period and no follow plan either
XVI. Explanation on other significant events
□Applicable √Not applicable
There are no explanations on other significant events in the period
XVII. Significant event of subsidiary of the Company
√ Applicable □ Not applicable
Proposed application for listing in the national middle and small enterprises stock transfer system by thecontrolling subsidiary Weifu TianliOn 25 October 2016, the 8
th
board of directors of the Company held the 9
th
meeting to consider and approve theproposal relating to proposed application for listing in the national middle and small enterprises stock transfersystem by the controlling subsidiary Ningbo Weifu Tianli Supercharging Technique Co., Ltd. on 30 December2016, Weifu Tianli was served with the notice of acceptance from the National Middle and Small Enterprise StockTransfer System Company Limited (GP2016120120). The relevant announcements (No.: 2016-020, 2016-023 and2017-001) were published on China Securities Journal, Securities Times, Hong Kong Commercial Daily andJuchao Information Website (http://www.cninfo.com.cn). At the current stage, this matter is in the progress ofconsideration and approval.
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
1. Changes in Shares
In Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 78,577 | 0.01% | 2,002 | 2,002 | 80,579 | 0.01% | |||
1. State Shareholdings | 0 | ||||||||
2. State-owned corporate shares | 0 | ||||||||
3. Other domestic shares | 78,577 | 0.01% | 2,002 | 2,002 | 80,579 | 0.01% | |||
Including: domestic corporate shares | 0 | ||||||||
Domestic nature person shares | 78,577 | 0.01% | 2,002 | 2,002 | 80,579 | 0.01% | |||
4. Foreign shares | 0 | ||||||||
II. Unrestricted shares | 1,008,871,993 | 99.99% | -2,002 | -2,002 | 1,008,869,991 | 99.99% | |||
1. RMB Ordinary shares | 836,491,993 | 82.90% | -2,002 | -2,002 | 836,489,991 | 82.90% | |||
2. Domestically listed foreign shares | 172,380,000 | 17.09% | 172,380,000 | 17.09% | |||||
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 commonshareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable √Not applicable
2. Changes of restricted shares
√Applicable □Not applicable
In Share
Shareholder | Shares restricted at period-begin | Shares un-lock in the period | Shares increased for restriction | Shares restricted at period-end | Reasons | Date for un-lock |
Zhang Zhenting | 0 | 0 | 500 | 500 | Executive lock-shares (resigned from supervisor for general election of supervisory committee) | 2018-12-27 |
Dai Lizhong | 0 | 0 | 1,500 | 1,500 | Executive lock-shares (elected as supervisor for general election of supervisory committee) | Not applicable |
Total | 0 | 0 | 2,000 | 2,000 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In share
Total common shareholders at period-end | 64,429 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | ||||||
Particulars about shares held above 5% by common shareholders or top ten common shareholders | |||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total common shareholders at the end of report period | Changes in report period | Amount of restrict common shares held | Amount of un-restrict common shares held | Number of share pledged/frozen | ||
State of share | Amount | ||||||||
Wuxi Industry Development Group Co., Ltd | State-owned corporate | 20.22% | 204,059,398 | 0 | 204,059,398 | ||||
ROBERT BOSCH GMBH | Foreign corporate | 14.16% | 142,841,400 | 0 | 142,841,400 | ||||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign corporate | 1.71% | 17,286,585 | 2,527,091 | 17,286,585 | ||||
Bank of Communication – HSBC Jixin Double Core Strategy Mixed Securities Investment Fund | Other | 1.67% | 16,805,835 | 16,805,835 | 16,805,835 | ||||
Hong Kong Securities | Foreign | 1.61% | 16,284,346 | -3,213,996 | 16,284,346 |
Clearing Company Ltd. (HKSCC) | corporate | |||||||||
Central Huijin Assets Management Co., Ltd. | State-owned corporate | 1.27% | 12,811,200 | 0 | 12,811,200 | |||||
RBC EMERGING MARKETS EQUITY FUND | Foreign corporate | 0.66% | 6,667,035 | -1,371,300 | 6,667,035 | |||||
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | Foreign corporate | 0.54% | 5,459,404 | 1,046,572 | 5,459,404 | |||||
National Social Security Fund-412 | Other | 0.45% | 4,499,184 | 531,857 | 4,499,184 | |||||
Ping An Life Insurance Company of China – Bonus –individual insurance | Other | 0.40% | 4,009,378 | -203,600 | 4,009,378 | |||||
Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note 3) | Not applicable | |||||||||
Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first largest shareholder of the Company; and they do not belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. | |||||||||
Particular about top ten shareholders with un-restrict common shares held | ||||||||||
Shareholders’ name | Amount of un-restrict common shares held at Period-end | Type of shares | ||||||||
Type | Amount | |||||||||
Wuxi Industry Development Group Co., Ltd | 204,059,398 | RMB common shares | 204,059,398 | |||||||
ROBERT BOSCH GMBH | 142,841,400 | RMB common shares | 115,260,600 | |||||||
Domestically listed foreign shares | 27,580,800 | |||||||||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | 17,286,585 | Domestically listed foreign shares | 17,286,585 | |||||||
Bank of Communication – HSBC Jixin Double Core Strategy Mixed Securities Investment Fund | 16,805,835 | RMB common shares | 16,805,835 | |||||||
Hong Kong Securities Clearing Company Ltd. (HKSCC) | 16,284,346 | RMB common shares | 16,284,346 | |||||||
Central Huijin Assets Management Co., Ltd. | 12,811,200 | RMB common shares | 12,811,200 | |||||||
RBC EMERGING MARKETS EQUITY FUND | 6,667,035 | Foreign listed foreign shares | 6,667,035 | |||||||
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | 5,459,404 | Foreign listed foreign shares | 5,459,404 |
National Social Security Fund-412 | 4,499,184 | RMB common shares | 4,499,184 |
Ping An Life Insurance Company of China – Bonus –individual insurance | 4,009,378 | RMB common shares | 4,009,378 |
Expiation on associated relationship or consistent actors within the top 10 un-restrict common shareholders and between top 10 un-restrict common shareholders and top 10 common shareholders | Among the top ten shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first largest shareholder of the Company; and they do not belong to the consistent actionist regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. | ||
Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | Not applicable |
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreementdealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-backagreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
√Applicable □ Not applicable
Name | Title | Working status | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Shares held at period-end (Share) | Number of restricted shares delegated at period-begin (Share) | Number of restricted shares delegated in the period (Share) | Number of restricted shares delegated at period-end (Share) |
Chen Xuejun | President | Currently in office | 34,753 | 34,753 | |||||
Rudolf Maier | Deputy president | Currently in office | |||||||
Wang Xiaodong | Deputy president, GM | Currently in office | 20,781 | 20,781 | |||||
Ou Jianbin | Director, standing deputy GM and CFO | Currently in office | 10,000 | 10,000 | |||||
Zhang Xiaogeng | Director | Currently in office | |||||||
Chen Yudong | Director | Currently in office | |||||||
Hua Wanrong | Director | Currently in office | |||||||
Yu Xiaoliyu | Independent director | Currently in office | |||||||
Lou Diming | Independent director | Currently in office | |||||||
Jin Zhangluo | Independent director | Currently in office | |||||||
Xu Xiaofang | Independent director | Currently in office | |||||||
Shi Xingyuan | Chairman of supervisory committee | Currently in office | 12,673 | 12,673 |
Ma Yuzhou | Supervisor | Currently in office | |||||||
Dai Lizhong | Supervisor | Currently in office | 2,000 | 2,000 | |||||
Miao Yuming | Deputy GM | Currently in office | 10,000 | 10,000 | |||||
Xu Yunfeng | Deputy GM | Currently in office | 13,000 | 13,000 | |||||
Zhou Weixing | Secretary of the Board | Currently in office | 3,565 | 3,565 | |||||
Xing Min | Independent director | Leave the post | |||||||
Zhang Zhenting | Supervisor | Leave the post | 500 | 500 | |||||
Liu Jinjun | Supervisor | Leave the post | |||||||
Total | -- | -- | 105,272 | 2,000 | 0 | 107,272 | 0 | 0 | 0 |
II. Resignation and dismissal of directors, supervisors and senior executives
√Applicable □Not applicable
Name | Position | Type | Date | Reasons |
Chen Xuejun | President | Election | 2018-06-27 | General election of the Board |
Rudolf Maier | Deputy President | Election | 2018-06-27 | General election of the Board |
Wang Xiaodong | Deputy President, GM | Election | 2018-06-27 | General election of the Board |
Ou Jianbin | Director, standing deputy GM and CFO | Election | 2018-06-27 | General election of the Board |
Zhang Xiaogeng | Director | Election | 2018-06-27 | General election of the Board |
Chen Yudong | Director | Election | 2018-06-27 | General election of the Board |
Hua Wanrong | Director | Election | 2018-06-27 | General election of the Board |
Yu Xiaoli | Independent director | Election | 2018-06-27 | General election of the Board |
Lou Diming | Independent director | Election | 2018-06-27 | General election of the Board |
Jin Zhangluo | Independent director | Election | 2018-06-27 | General election of the Board |
Yu Xiaofang | Independent director | Election | 2018-06-27 | General election of the Board |
Shi Xingyuan | Chairman of supervisory committee | Election | 2018-06-27 | General election of supervisory committee |
Ma Yuzhou | Supervisor | Election | 2018-06-27 | General election of supervisory committee |
Dai Lizhong | Supervisor | Election | 2018-06-27 | General election of supervisory committee |
Miao Yuming | Deputy GM | Appointment | 2018-06-27 | General election of the Board |
Xu Yunfeng | Deputy GM | Appointment | 2018-06-27 | General election of the Board |
Zhou Weixing | Secretary of the Board | Appointment | 2018-06-27 | General election of the Board |
Xing Min | Independent director | Leave the post for office term expired | 2018-06-27 | Resigned the post for general election of the Board |
Zhang Zhenting | Supervisor | Leave the post for office term expired | 2018-06-27 | Resigned the post for general election of supervisory committee |
Liu Jinjun | Supervisor | Leave the post for office term expired | 2018-06-27 | Resigned the post for general election of supervisory committee |
Section IX Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whensemi-annual report approved for released or fail to cash in full on dueNo
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
2018-6-30
In RMB
Item | Ending balance | Opening balance |
Current assets: | ||
Monetary funds | 3,042,709,775.25 | 3,118,709,412.83 |
Settlement provisions | ||
Capital lent | ||
Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial assets | ||
Notes receivable | 1,676,937,153.03 | 1,464,256,934.83 |
Accounts receivable | 2,374,955,337.33 | 1,995,577,830.90 |
Account paid in advance | 99,860,122.30 | 97,576,197.88 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Interest receivable | 1,480,250.00 | 2,281,979.17 |
Dividends receivable | 546,269,615.74 | |
Other receivables | 17,839,885.07 | 5,214,623.41 |
Purchase restituted finance asset | ||
Inventories | 1,241,695,545.38 | 1,478,939,040.70 |
Divided into assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 4,586,279,800.73 | 3,887,997,290.53 |
Total current assets | 13,588,027,484.83 | 12,050,553,310.25 |
Non-current assets: | ||
Loans and payments on behalf | ||
Available-for-sale financial assets | 479,236,360.00 | 588,142,869.00 |
Held-to-maturity investments | ||
Long-term receivables | ||
Long-term equity investments | 4,261,256,191.08 | 4,140,064,825.58 |
Investment property | 22,761,528.91 | 23,544,830.78 |
Fixed assets | 2,625,557,400.23 | 2,584,872,628.54 |
Construction in progress | 195,609,102.08 | 100,345,461.28 |
Project materials | ||
Disposal of fixed assets | ||
Productive biological assets | ||
Oil and natural gas assets | ||
Intangible assets | 332,886,731.99 | 340,632,143.36 |
Research and development costs | ||
Goodwill | 1,784,086.79 | 1,784,086.79 |
Long-term deferred expenses | 7,951,490.73 | 2,969,770.81 |
Deferred income tax assets | 202,373,683.03 | 203,007,622.23 |
Other non-current assets | 203,344,783.19 | 195,088,675.74 |
Total non-current assets | 8,332,761,358.03 | 8,180,452,914.11 |
Total assets | 21,920,788,842.86 | 20,231,006,224.36 |
Current liabilities: | ||
Short-term borrowings | 359,000,000.00 | 243,000,000.00 |
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 | 1,086,240,637.65 | 947,976,759.10 |
Accounts payable | 2,596,968,053.96 | 2,570,956,205.83 |
Accounts received in advance | 38,744,126.90 | 42,820,236.07 |
Selling financial asset of repurchase | ||
Commission charge and commission payable | ||
Wage payable | 272,784,575.15 | 327,778,677.29 |
Taxes payable | 94,439,018.34 | 93,869,690.36 |
Interest payable | 555,009.72 | 401,928.43 |
Dividend payable | 1,210,740,700.00 | |
Other accounts payable | 65,356,662.87 | 62,937,940.90 |
Reinsurance payables | ||
Insurance contract reserve | ||
Security trading of agency | ||
Security sales of agency | ||
Liability held for sale | ||
Non-current liabilities due within one year | 5,000,000.00 | 10,000,000.00 |
Other current liabilities | ||
Total current liabilities | 5,729,828,784.59 | 4,299,741,437.98 |
Non-current liabilities: | ||
Long-term loans | 45,000,000.00 | 45,000,000.00 |
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Long-term account payable | 19,407,272.00 | 17,496,363.00 |
Long-term wages payable | 30,448,132.88 | 30,448,132.88 |
Special accounts payable | 18,265,082.11 | 18,265,082.11 |
Accrual liabilities | ||
Deferred income | 439,544,262.06 | 451,281,721.77 |
Deferred income tax liabilities | 7,062,415.26 | 17,406,622.39 |
Other non-current liabilities | ||
Total non-current liabilities | 559,727,164.31 | 579,897,922.15 |
Total liabilities | 6,289,555,948.90 | 4,879,639,360.13 |
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 | 3,416,016,805.42 | 3,417,841,402.89 |
Less: Inventory shares | ||
Other comprehensive income | 28,866,874.66 | 87,169,455.01 |
Reasonable reserve | 1,119,601.82 | 2,606.93 |
Surplus reserve | 510,100,496.00 | 510,100,496.00 |
Provision of general risk | ||
Retained profit | 10,146,111,143.84 | 9,811,609,138.92 |
Total owners’ equity attributable to parent company | 15,111,165,491.74 | 14,835,673,669.75 |
Minority interests | 520,067,402.22 | 515,693,194.48 |
Total owners’ equity | 15,631,232,893.96 | 15,351,366,864.23 |
Total liabilities and owner’s equity | 21,920,788,842.86 | 20,231,006,224.36 |
Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
In RMB
Item | Ending balance | Opening balance |
Current assets: | ||
Monetary funds | 2,603,443,354.29 | 2,460,413,190.84 |
Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial assets | ||
Notes receivable | 418,685,069.60 | 449,209,323.02 |
Accounts receivable | 1,003,118,142.78 | 1,047,012,889.92 |
Account paid in advance | 58,841,677.78 | 52,269,971.38 |
Interest receivable | 228,052.78 | 97,627.77 |
Dividends receivable | 532,862,944.82 | |
Other receivables | 178,153,549.80 | 50,174,653.16 |
Inventories | 386,390,243.97 | 425,577,163.53 |
Assets held for sale | ||
Non-current assets due within one year | ||
Other current assets | 4,394,258,562.40 | 3,876,370,675.52 |
Total current assets | 9,575,981,598.22 | 8,361,125,495.14 |
Non-current assets: | ||
Available-for-sale financial assets | 403,296,360.00 | 512,202,869.00 |
Held-to-maturity investments | ||
Long-term receivables | ||
Long-term equity investments | 5,052,525,076.38 | 4,962,522,689.49 |
Investment property | ||
Fixed assets | 1,560,811,227.67 | 1,567,315,925.73 |
Construction in progress | 59,671,595.15 | 29,152,398.74 |
Project materials | ||
Disposal of fixed assets | ||
Productive biological assets | ||
Oil and natural gas assets | ||
Intangible assets | 192,303,346.51 | 196,726,670.75 |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | ||
Deferred income tax assets | 114,410,983.88 | 114,706,976.54 |
Other non-current assets | 103,943,087.63 | 80,866,308.04 |
Total non-current assets | 7,486,961,677.22 | 7,463,493,838.29 |
Total assets | 17,062,943,275.44 | 15,824,619,333.43 |
Current liabilities: | ||
Short-term borrowings | 180,000,000.00 | 78,000,000.00 |
Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial liability | ||
Notes payable | 381,906,378.48 | 459,762,950.78 |
Accounts payable | 965,506,741.66 | 1,082,206,882.07 |
Accounts received in advance | 11,405,762.35 | 12,242,442.51 |
Wage payable | 196,370,045.34 | 216,598,203.73 |
Taxes payable | 66,402,908.98 | 71,370,793.35 |
Interest payable | 292,055.55 | 93,777.78 |
Dividend payable | 1,210,740,700.00 | |
Other accounts payable | 13,611,772.35 | 9,982,668.55 |
Liability held for sale | ||
Non-current liabilities due within one year | ||
Other current liabilities | ||
Total current liabilities | 3,026,236,364.71 | 1,930,257,718.77 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Long-term account payable | ||
Long-term wages payable | 16,665,236.81 | 16,665,236.81 |
Special accounts payable | ||
Accrual liabilities | ||
Deferred income | 395,256,852.69 | 407,070,636.08 |
Deferred income tax liabilities | 5,094,154.34 | 15,382,844.99 |
Other non-current liabilities | ||
Total non-current liabilities | 417,016,243.84 | 439,118,717.88 |
Total liabilities | 3,443,252,608.55 | 2,369,376,436.65 |
Owners’ equity: | ||
Share capital | 1,008,950,570.00 | 1,008,950,570.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital reserve | 3,488,221,286.39 | 3,488,221,286.39 |
Less: Inventory shares | ||
Other comprehensive income | 28,866,874.66 | 87,169,455.01 |
Reasonable reserve | ||
Surplus reserve | 510,100,496.00 | 510,100,496.00 |
Retained profit | 8,583,551,439.84 | 8,360,801,089.38 |
Total owners’ equity | 13,619,690,666.89 | 13,455,242,896.78 |
Total liabilities and owner’s equity | 17,062,943,275.44 | 15,824,619,333.43 |
3. Consolidated Profit Statement
In RMB
Item | Current period | Last Period |
I. Total operating income | 4,960,801,890.99 | 4,728,125,599.02 |
Including: Operating income | 4,960,801,890.99 | 4,728,125,599.02 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 4,446,134,584.97 | 4,235,672,796.49 |
Including: Operating cost | 3,889,590,289.69 | 3,736,290,938.86 |
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 | 38,000,352.40 | 37,862,282.48 |
Sales expenses | 106,347,559.85 | 71,559,262.66 |
Administration expenses | 413,983,378.78 | 399,568,734.73 |
Financial expenses | -1,776,908.37 | 1,688,051.32 |
Losses of devaluation of asset | -10,087.38 | -11,296,473.56 |
Add: Changing income of fair value(Loss is listed with “-”) | ||
Investment income (Loss is listed with “-”) | 1,149,033,168.39 | 955,437,915.36 |
Including: Investment income on affiliated company and joint venture | 968,640,145.91 | 833,565,520.64 |
Exchange income (Loss is listed with “-”) | ||
Income from assets disposal(Loss is listed with “-”) | 1,588,185.36 | -125,780.60 |
Other income | 14,032,459.71 | 15,608,007.28 |
III. Operating profit (Loss is listed with “-”) | 1,679,321,119.48 | 1,463,372,944.57 |
Add: Non-operating income | 3,881,128.87 | 2,784,579.48 |
Less: Non-operating expense | 2,327,872.38 | 3,764,224.66 |
IV. Total Profit (Loss is listed with “-”) | 1,680,874,375.97 | 1,462,393,299.39 |
Less: Income tax expense | 102,927,297.96 | 94,025,933.36 |
V. Net profit (Net loss is listed with “-”) | 1,577,947,078.01 | 1,368,367,366.03 |
(i) Net profit of continuous operating (Net loss is listed with “-”) | 1,577,947,078.01 | 1,368,367,366.03 |
(ii) Net profit of business termination (Net loss is listed with “-”) | ||
Net profit attributable to owners of parent company | 1,545,242,704.92 | 1,325,922,029.56 |
Minority shareholders’ gains and losses | 32,704,373.09 | 42,445,336.47 |
VI. Net after-tax of other comprehensive income | -58,302,580.35 | -39,797,212.50 |
Net after-tax of other comprehensive income attributable to owners of parent company | -58,302,580.35 | -39,797,212.50 |
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss | -58,302,580.35 | -39,797,212.50 |
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 available-for-sale financial assets | -58,302,580.35 | -39,797,212.50 |
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 | 1,519,644,497.66 | 1,328,570,153.53 |
Total comprehensive income attributable to owners of parent Company | 1,486,940,124.57 | 1,286,124,817.06 |
Total comprehensive income attributable to minority shareholders | 32,704,373.09 | 42,445,336.47 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | 1.53 | 1.31 |
(ii) Diluted earnings per share | 1.53 | 1.31 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan beforecombination, and realized 0 Yuan at last period for combined partyLegal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
In RMB
Item | Current period | Last Period |
I. Operating income | 2,315,142,655.13 | 1,626,480,415.71 |
Less: Operating cost | 1,698,516,522.90 | 1,268,622,661.58 |
Operating tax and extras | 20,760,852.64 | 14,826,758.76 |
Sales expenses | 17,030,807.96 | 13,791,093.39 |
Administration expenses | 216,259,763.11 | 184,157,736.45 |
Financial expenses | -5,330,079.95 | -346,977.87 |
Losses of devaluation of asset | 468,622.39 | 48,394.70 |
Add: Changing income of fair value(Loss is listed with “-”) | ||
Investment income (Loss is listed with “-”) | 1,137,350,229.02 | 1,830,767,022.75 |
Including: Investment income on affiliated company and joint venture | 894,788,126.54 | 767,309,765.64 |
Income from assets disposal(Loss is listed with “-”) | 698,843.73 | -143,090.25 |
Other income | 11,813,783.39 | 13,915,329.88 |
II. Operating profit (Loss is listed with “-”) | 1,517,299,022.22 | 1,989,920,011.08 |
Add: Non-operating income | 26,550.35 | 244,259.65 |
Less: Non-operating expense | 989,892.95 | 2,088,732.14 |
III. Total Profit (Loss is listed with “-”) | 1,516,335,679.62 | 1,988,075,538.59 |
Less: Income tax expense | 82,844,629.16 | 47,444,108.88 |
IV. Net profit (Net loss is listed with “-”) | 1,433,491,050.46 | 1,940,631,429.71 |
(i) Net profit of continuous operating (Net loss is listed with “-”) | 1,433,491,050.46 | 1,940,631,429.71 |
(ii) Net profit of business termination (Net loss is listed with “-”) | ||
V. Net after-tax of other comprehensive income | -58,302,580.35 | -39,797,212.50 |
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
2. Share of the other comprehensive income of the investee |
accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss | -58,302,580.35 | -39,797,212.50 |
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 available-for-sale financial assets | -58,302,580.35 | -39,797,212.50 |
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 | 1,375,188,470.11 | 1,900,834,217.21 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
Item | Current period | Last Period |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 4,321,753,642.57 | 3,437,449,626.28 |
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 | 28,784,608.45 | 22,168,009.92 |
Other cash received concerning operating activities | 20,879,944.10 | 19,713,087.22 |
Subtotal of cash inflow arising from operating activities | 4,371,418,195.12 | 3,479,330,723.42 |
Cash paid for purchasing commodities and receiving labor service | 2,812,244,020.34 | 2,032,254,137.91 |
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 | 683,701,600.44 | 614,817,453.84 |
Taxes paid | 342,578,412.02 | 325,770,301.21 |
Other cash paid concerning operating activities | 153,970,471.84 | 154,087,588.94 |
Subtotal of cash outflow arising from operating activities | 3,992,494,504.64 | 3,126,929,481.90 |
Net cash flows arising from operating activities | 378,923,690.48 | 352,401,241.52 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 5,361,095,457.96 | 3,091,512,477.03 |
Cash received from investment income | 463,686,171.47 | 430,252,079.05 |
Net cash received from disposal of fixed, intangible and other long-term assets | 39,773,802.87 | 53,235,402.65 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 5,864,555,432.30 | 3,574,999,958.73 |
Cash paid for purchasing fixed, intangible and other long-term assets | 362,947,568.87 | 212,687,557.71 |
Cash paid for investment | 6,084,063,284.96 | 5,925,993,243.66 |
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units | ||
Other cash paid concerning investing activities | 10,000,000.00 | |
Subtotal of cash outflow from investing activities | 6,457,010,853.83 | 6,138,680,801.37 |
Net cash flows arising from investing activities | -592,455,421.53 | -2,563,680,842.64 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
Cash received from loans | 330,000,000.00 | 185,000,000.00 |
Cash received from issuing bonds | ||
Other cash received concerning financing activities | 5,470,000.00 | |
Subtotal of cash inflow from financing activities | 335,470,000.00 | 185,000,000.00 |
Cash paid for settling debts | 219,000,000.00 | 152,500,000.00 |
Cash paid for dividend and profit distributing or interest paying | 9,337,888.74 | 17,164,736.59 |
Including: Dividend and profit of minority shareholder paid by subsidiaries | 174,600.00 | 11,958,920.00 |
Other cash paid concerning financing activities | 339,091.00 | 1,049,711.28 |
Subtotal of cash outflow from financing activities | 228,676,979.74 | 170,714,447.87 |
Net cash flows arising from financing activities | 106,793,020.26 | 14,285,552.13 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 810,171.83 | -3,018,810.88 |
V. Net increase of cash and cash equivalents | -105,928,538.96 | -2,200,012,859.87 |
Add: Balance of cash and cash equivalents at the period-begin | 2,948,439,354.22 | 3,795,223,678.11 |
VI. Balance of cash and cash equivalents at the period-end | 2,842,510,815.26 | 1,595,210,818.24 |
6. Cash Flow Statement of Parent Company
In RMB
Item | Current period | Last Period |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 2,707,966,926.41 | 1,138,848,252.21 |
Write-back of tax received | ||
Other cash received concerning operating activities | 9,047,393.86 | 505,652,991.97 |
Subtotal of cash inflow arising from operating activities | 2,717,014,320.27 | 1,644,501,244.18 |
Cash paid for purchasing commodities and receiving labor service | 1,572,426,004.69 | 707,951,478.67 |
Cash paid to/for staff and workers | 361,672,047.87 | 277,978,923.53 |
Taxes paid | 242,573,191.33 | 133,461,523.26 |
Other cash paid concerning operating activities | 142,557,335.52 | 168,294,750.99 |
Subtotal of cash outflow arising from operating activities | 2,319,228,579.41 | 1,287,686,676.45 |
Net cash flows arising from operating activities | 397,785,740.86 | 356,814,567.73 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 5,174,745,373.00 | 2,974,601,492.00 |
Cash received from investment income | 450,095,688.15 | 1,365,386,425.45 |
Net cash received from disposal of fixed, intangible and other long-term assets | 38,214,564.65 | 52,252,940.94 |
Net cash received from disposal of subsidiaries and other units | 2,410,502.57 | |
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 5,663,055,625.80 | 4,394,651,360.96 |
Cash paid for purchasing fixed, intangible and other long-term assets | 187,935,182.03 | 61,095,071.88 |
Cash paid for investment | 5,687,713,200.00 | 5,617,929,258.63 |
Net cash received from subsidiaries and other units | ||
Other cash paid concerning investing activities | 173,000,000.00 | |
Subtotal of cash outflow from investing activities | 6,048,648,382.03 | 5,679,024,330.51 |
Net cash flows arising from investing activities | -385,592,756.23 | -1,284,372,969.55 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Cash received from loans | 180,000,000.00 | 80,000,000.00 |
Cash received from issuing bonds | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 180,000,000.00 | 80,000,000.00 |
Cash paid for settling debts | 78,000,000.00 | 80,000,000.00 |
Cash paid for dividend and profit distributing or interest paying | 3,391,380.55 | 1,637,133.32 |
Other cash paid concerning financing activities | ||
Subtotal of cash outflow from financing activities | 81,391,380.55 | 81,637,133.32 |
Net cash flows arising from financing activities | 98,608,619.45 | -1,637,133.32 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 761,175.27 | -3,018,810.88 |
V. Net increase of cash and cash equivalents | 111,562,779.35 | -932,214,346.02 |
Add: Balance of cash and cash equivalents at the period -begin | 2,454,696,969.20 | 2,143,377,059.99 |
VI. Balance of cash and cash equivalents at the period-end | 2,566,259,748.55 | 1,211,162,713.97 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Amount for current period
In RMB
Item | Current period | ||||||||||||
Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||
I. Balance at the end of the last year | 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 | |||||
Add: Changes of accounting policy | |||||||||||||
Error correction of the last period | |||||||||||||
Enterprise combine under the same control | |||||||||||||
Other | |||||||||||||
II. Balance at the beginning | 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 |
of this year | |||||||||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -1,824,597.47 | -58,302,580.35 | 1,116,994.89 | 334,502,004.92 | 4,374,207.74 | 279,866,029.73 | |||||||
(i) Total comprehensive income | -58,302,580.35 | 1,545,242,704.92 | 32,704,373.09 | 1,519,644,497.66 | |||||||||
(ii) Owners’ devoted and decreased capital | -1,824,597.47 | -12,945,402.53 | -14,770,000.00 | ||||||||||
1.Common shares invested by shareholders | -12,945,402.53 | -12,945,402.53 | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||
3. Amount reckoned into owners equity with share-based |
payment | |||||||||||||
4. Other | -1,824,597.47 | -1,824,597.47 | |||||||||||
(III) Profit distribution | -1,210,740,700.00 | -15,604,600.00 | -1,226,345,300.00 | ||||||||||
1. Withdrawal of surplus reserves | |||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||
3. Distribution for owners (or shareholders) | -1,210,740,700.00 | -15,604,600.00 | -1,226,345,300.00 | ||||||||||
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 reserve | 1,116,994.89 | 219,837.18 | 1,336,832.07 | ||||||||||
1. Withdrawal in the report period | 10,050,468.85 | 1,395,689.84 | 11,446,158.69 | ||||||||||
2. Usage in the report period | 8,933,473.96 | 1,175,852.66 | 10,109,326.62 | ||||||||||
(VI)Others | |||||||||||||
IV. Balance at the end of the report period | 1,008,950,570.00 | 3,416,016,805.42 | 28,866,874.66 | 1,119,601.82 | 510,100,496.00 | 10,146,111,143.84 | 520,067,402.22 | 15,631,232,893.96 |
Amount for last year
In RMB
Item | Last period | ||||||||||||
Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||
I. Balance at the end of the last year | 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 | |||||
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 year | 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 |
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -57,553,372.50 | -86,398.26 | 1,965,969,148.04 | 44,607,096.43 | 1,952,936,473.71 | ||||||||
(i) Total comprehensive income | -57,553,372.50 | 2,571,339,490.04 | 75,870,434.54 | 2,589,656,552.08 | |||||||||
(ii) Owners’ devoted and decreased capital | 8,480,761.72 | 8,480,761.72 | |||||||||||
1.Common shares invested by shareholders | 9,520,000.00 | 9,520,000.00 | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||
4. Other | -1,039,238.28 | -1,039,238.28 | |||||||||||
(III) Profit distribution | -605,370,342.00 | -39,650,290.00 | -645,020,632.00 | ||||||||||
1. Withdrawal of surplus reserves | |||||||||||||
2. Withdrawal of general risk |
provisions | |||||||||||||
3. Distribution for owners (or shareholders) | -605,370,342.00 | -39,650,290.00 | -645,020,632.00 | ||||||||||
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 reserve | -86,398.26 | -93,809.83 | -180,208.09 | ||||||||||
1. Withdrawal in the report period | 17,947,661.67 | 2,379,810.36 | 20,327,472.03 | ||||||||||
2. Usage in the report period | 18,034,059.93 | 2,473,620.19 | 20,507,680.12 | ||||||||||
(VI)Others | |||||||||||||
IV. Balance at the end of the report period | 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 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Amount for current period
In RMB
Item | Current period | ||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | |||||||||
I. Balance at the end of the last year | 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 | |||||
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 | 3,488,221,286.39 | 87,169,455.01 | 510,100,496.00 | 8,360,801,089.38 | 13,455,242,896.78 | |||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -58,302,580.35 | 222,750,350.46 | 164,447,770.11 | ||||||||
(i) Total comprehensive income | -58,302,580.35 | 1,433,491,050.46 | 1,375,188,470.11 | ||||||||
(ii) Owners’ devoted and decreased capital |
1.Common shares invested by shareholders | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||
4. Other | |||||||||||
(III) Profit distribution | -1,210,740,700.00 | -1,210,740,700.00 | |||||||||
1. Withdrawal of surplus reserves | |||||||||||
2. Distribution for owners (or shareholders) | -1,210,740,700.00 | -1,210,740,700.00 | |||||||||
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 | 3,751,960.66 | 3,751,960.66 | |||||||||
2. Usage in the report period | 3,751,960.66 | 3,751,960.66 | |||||||||
(VI)Others | |||||||||||
IV. Balance at the end of the report period | 1,008,950,570.00 | 3,488,221,286.39 | 28,866,874.66 | 510,100,496.00 | 8,583,551,439.84 | 13,619,690,666.89 |
Amount for last year
In RMB
Item | Last period | ||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | |||||||||
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 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 | |||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | 39,812,500.00 | -57,553,372.50 | 2,835,157,009.59 | 2,817,416,137.09 | |||||||
(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 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 shareholders) | -605,370,342.00 | -605,370,342.00 | |||||||||
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 period | 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 |
III. Basic information of the Company
1. Historical origin of the CompanyBy 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 forIndustry & 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 amountingto 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 Companyissued 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) atShenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of theCompany 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 theCompany amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMBordinary 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 sharesafter the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotmentincreased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMBordinary 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.
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 inShare 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 arrangedpricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certainconditions, 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 10shares based on the number of circulating A share as prior to Share Merger Reform, according to the aforesaidShare Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation ofdispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing17.63% 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. byWuxi 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 asWuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets andcredits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi IndustryGroup became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approvedby [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMBordinary 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 RMB680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCHis 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, andalso passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in totalare 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 thecancellation 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.
2. Registered place, organization structure and head office of the CompanyRegistered place and head office of the Company: No. 5 Huashan Road, New District, WuxiUnified 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-massesDepartment, Finance Department, Purchase Department, Manufacturing Quality Department, MS (MechanicalSystem) division, AC(Auto spare parts) division and DS (Diesel System ) division etc. and subsidiaries such asWuxi Weifu Leader Catalytic Converter Co., Ltd. and Nanjing Weifu Jinning Co., Ltd.
3. Business nature and major operation activities of the CompanyOperation 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 autoelectronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaustpost-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 ofdiversified commodities and technologies (other than those commodities and technologies limited or forbidden bythe State for import and export) by self-operation and works as agent for such business. (Any projects that needsto be approved by laws can only be carried out after getting approval by relevant authorities)Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereofFinancial statements of the Company were approved by the Board of Directors for reporting dated 24 August2018.
Name of subsidiary | Shortname of subsidiary | Shareholding ratio (%) | Proportion of votes (%) | Registered capital (in 10 thousand Yuan) | Business scope | Statement consolidate (Y/N) | |
Directly | Indirectly | ||||||
Nanjing Weifu Jinning Co., Ltd. | Weifu Jinning | 80.00 | -- | 80.00 | 34,628.70 | Internal-combustion engine and accessories | Y |
Wuxi Weifu Leader Catalytic Converter Co., Ltd. | Weifu Leader | 94.81 | -- | 94.81 | 50,259.63 | Purifier and muffler | Y |
Weifu Mashan Pump Glib Co., Ltd. | Weifu Mashan | 100.00 | -- | 100.00 | 16,500 | Internal-combustion engine and accessories | Y |
Wuxi Weifu Chang’an Co., Ltd. | Weifu Chang’an | 100.00 | -- | 100.00 | 21,000 | Internal-combustion | Y |
engine and accessories | |||||||
Wuxi Weifu International Trade Co. Ltd. | Weifu International Trade | 100.00 | -- | 100.00 | 3,000 | Trade | Y |
Wuxi Weifu ITM Supercharging Technique Co., Ltd. | Weifu ITM | 100.00 | -- | 100.00 | 16,000 | Internal-combustion engine and accessories | Y |
Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd. | Weifu Schmidt | 66.00 | -- | 66.00 | 7,600 | Internal-combustion engine and accessories | Y |
Ningbo Weifu Tianli Supercharging Technique Co., Ltd. | Weifu Tianli | 54.23 | -- | 54.23 | 11,136 | Internal-combustion engine and accessories | Y |
Wuxi Weifu-Autocam Fine Machinery Co. Ltd. | Weifu Autocam | 51.00 | -- | 51.00 | USD1,510 | Auto parts | Y |
Wuxi Weifu Leader Catalytic Converter (Wuhan) Co., Ltd. | Weifu Leader (Wuhan) | -- | 60.00 | 60.00 | 1,000 | Purifier and muffler | Y |
Weifu Leader (Chongqing) Automobile Parts Co., Ltd. | Weifu Leader (Chongqing) | -- | 100.00 | 100.00 | 2,615.17 | Purifier and muffler | Y |
Nanchang Weifu Leader Automobile Parts Co., Ltd. | Weifu Leader (Nanchang) | -- | 100.00 | 100.00 | 5,000 | Purifier and muffler | Note ① |
Note ①: 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 2006and 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 theCompilation 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 andproceedings, on a basis of ongoing operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company ison 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 concernThe 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 systemproducts, Auto spare parts, mufflers and purifiers etc., in line with the real operational characteristics and relevantaccounting standards, many specific accounting policies and estimation have been formulated for the transactionsand 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 EnterprisesFinancial 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 in the period,such as financial position, operation achievements and cash flow.
2. Accounting periodAccounting 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 each1 January to 31 December.
3. Business cyclesNormal 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 CombinationsBusiness 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 businesscombined under different control.(1) The business combination under the same controlEnterprise combination under the same control is the enterprise who take part in the combination are have thesame ultimate controller or under the same controller, the control is not temporary. The assets and liabilityacquired 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 notenough 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 whencombining party obtained controlling rights from the combined party.(2) Combine not under the same controlA business combination not involving entities under common control is a business combination in which all of thecombining 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) forpurchasing controlling right from the acquiree, the liability occurred or undertake on purchasing date less the fairvalue of identifiable net assets of the acquiree obtained in combination, recognized as goodwill if the results ispositive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of theidentifiable 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, theacquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost forcombination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its bookvalues, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency ofthe 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 consolidatedstatement in line with relevant information. The scope of consolidation of consolidated financial statements isascertained on the basis of effective control. Once certain elements involved in the above definition of controlchange 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 processSubsidiaries are consolidated from the date on which the company obtains their actual control, and aredeconsolidated 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 beingdisposed, the operating results and cash flows prior to the date of disposal are included in the consolidated incomestatement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balancesof the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combinationnot under common control, their operating results and cash flows subsequent to the acquisition date are includedin the consolidated income statement and consolidated cash flow statement, and the opening balances andcomparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from abusiness combination under common control, their operating results and cash flows from the date ofcommencement 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 figuresof the consolidated balance sheet would be restated.In preparing the consolidated financial statements, where the accounting policies or the accounting periods areinconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted inaccordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control, adjusted several financial statementof the subsidiary based on the fair value of recognizable net assets on purchased day while financial statementconsolidation; concerning the subsidiary obtained under combination with same control, considered current statusof 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 thesubsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains andlosses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed andoffset between "the net profit attributable to the owners of the parent company" and "minority interest" accordingto the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internaltransactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profitattributable to the owners of the parent company" and "minority interest" according to the distribution ratio of theCompany 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 theminority 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, addthe "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, thebalance 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 fairvalue of the remaining equity interest is re-measured on the date when the control ceased. The difference betweenthe sum of the consideration received from disposal of equity interest and the fair value of the remaining equityinterest, less the net assets attributable to the company since the acquisition date, is recognized as the investmentincome from the loss of control. Other comprehensive income relating to original equity investment insubsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by theacquiree directly when the control is lost, namely be transferred to current investment income other than therelevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit schemeby 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 EquityInvestments” or “Accounting Standards for business Enterprises 22 – Financial Instruments Recognition andMeasurement”.
The company shall determine whether loss of control arising from disposal in a series of transactions should beregarded 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 eachindividual transaction; ② The transactions need to be considered as a whole in order to achieve a deal incommercial sense; ③The occurrence of an individual transaction depends on the occurrence of one or moreindividual 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 asubsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary whichlead 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 fromdisposal and the share of net assets disposed in each individual transactions before loss of control shall berecognized as other comprehensive income, and reclassified as profit or loss arising from the loss of control whencontrol 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 inaccordance 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 inappropriation to the share of the Company;(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany 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 equivalentCash 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 asknown amount and investment with minor variation in risks.
9. Foreign currency business and conversionThe 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 inaccordance 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 convertedinto the recording currency amount in accordance with the middle rate of the market exchange rate published bythe 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 theexchange gains or losses. Thereinto, the exchange gains or losses occurred in the foreign currency loans related tothe purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowingcosts; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest isincluded in the current financial expenses.
At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are convertedin accordance with the middle rate of the market exchange rate published by the People's Bank of China on thetransaction date without changing its original recording currency amount; the foreign currency non-monetary itemsmeasured with the fair value are converted in accordance with the middle rate of the market exchange ratepublished by the People's Bank of China on the fair value date, and the generated exchange gains and losses areincluded 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 thestatements 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 thetransaction 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 tothe 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 instrumentFinancial 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 liabilityIn terms of investment purposes and economic natures, the Company divides its financial assets into financialassets( 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 atfair 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 financialliabilities 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 aliability in an orderly transaction between market participants on the date of measurement. Financial instrumentsexist in an active market. Fair value is determined based on the quoted price in such market. An active marketrefers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and pricefixing 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 valuationtechniques. Valuation technologies include reference to be familiar with situation and prices reached in recentmarket transactions entered into by both willing parties, reference to present fair values of similar other financialinstruments, 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, commoncontrol or significant influence (that is under the major influence), has no quota in an active market and the fairvalue 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 assetsThat the Company grants or delivers financial assets to party other than the issuer of such financial assets equalstransfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Twoforms 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 collectorWhen that the Company has transferred almost all risks and remunerations arising from ownership of all or partfinancial 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 asfinancial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerationsattached to ownership of such financial assets, while control upon such financial assets still exists, recognitionshall 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 liabilityUpon satisfaction of one of the following condition, financial assets will immediately experience discontinuedrecognition:
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 ceaserecognition of such financial liability or part thereof.
(5) Impairment of financial assetsThe 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 separateimpairment 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 nogreat 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 threecharacteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over theestimated future cash flow of such financial assets, and such influence could be reliably measured by theCompany.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 initialrecognition 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 incountry or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and theindustry in which it belongs to is unpromising;
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 thedifference 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 indicatingvalue of such financial asset has recovered, which is objectively related to proceedings occurred after recognitionof such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, thecarrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at thereversal 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 othercomprehensive income arising from the decrease in fair value was transferred out from the capital reserve andincluded in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve isthe 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 financialassets impaired and which is related to any event occurring after such recognition in subsequent periods, theimpairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-saleequity instrument will be recognized as other comprehensive income, and the impairment loss reversal of theavailable-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 measuredreliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settledby 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
single item
Determine basis or amount standards for single significant amount | The Company’s account receivables with above RMB 1 million in single item is defined as account receivables with significant amount in single item. |
Withdrawal method for account with single significant amount and withdrawal single item bad debt provision | In line with the difference of present value of future cash flow lower its book value, carried out impairment test independently and withdrawal the bad debt 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; 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. | Age analysis method |
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 debt provision | The present value of future cash flow has major difference with the receivable group’s present value of future cash flow |
Withdrawal method for bad debt provision | Carried out impairment test independently, accrual bad debt reserves according to the difference of present value of future cash flow lower its book value |
12. Inventories
Dose the Company need to comply with disclosure requirements of the special industryNo
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventoriesA. 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 deliveredraw materials and the material cost the aforesaid cost should share after carrying forward at period-end, theCompany adjusts the planned cost to effective cost; finished products are priced at effective costs, and carriedforward 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 occurredcost;C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weightedaverage method; external purchase goods (from import and export trades) are carried forward to sales cost byindividual pricing method.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairmentprovisionInventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis ofoverall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs ofinventories which result from destroy of inventories, out-of-time of all and part inventories, or sales pricelowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to thedifference between costs of single inventory item over its net realizable value. As for other raw materials withlarge quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant tocategories.As for finished goods, commodities and materials available for direct sales, their net realizable values aredetermined by their estimated selling prices less estimated sales expenses and relevant taxes. For materialinventories held for purpose of production, their net realizable values are determined by the estimated sellingprices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated tillcompletion of production. As for inventories held for implementation of sales contracts or service contracts, theirnet realizable values are calculated on the basis of contract prices. In the event that inventories held by a companyexceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on thebasis of normal sale price.
(4) Inventory systemPerpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
①Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
②Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
13. Classified as assets held for saleThe 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, thenon-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, theselling is estimated to be completed within one year. Those assets whose disposal is subject to approval fromrelevant 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 ornot the Company retains part equity investment after such disposal, investment in the subsidiary shall be classifiedin its entirety as held for sale in the separate financial statement of the parent company subject to that theinvestment 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 financialstatement.The purchase commitment identified refers to the legally binding purchase agreement entered into between theCompany and other parties, which sets out certain major terms relating to transaction price, time and adequatelystringent punishment for default, which render an extremely minor possibility for material adjustment orrevocation of the agreement.Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If thecarrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss andrecorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of theassets. In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill inthe disposal group shall be deducted first, and then deduct the carrying value of the non-current assets within thedisposal group applicable to this measurement standard on a pro rata basis according to the proportion taken bytheir carrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheetdate increases, the amount previously reduced for accounting shall be recovered and reverted from the impairmentloss recognized after the asset is classified under the category of held for sale, with the amount reverted recordedin profit or loss for the period. Impairment loss recognized before the asset is classified under the category of heldfor sale shall not be reverted. If the net amount of fair value of the disposal group held for sale on the subsequentbalance sheet date less sales expenses increases, the amount reduced for accounting in previous periods shall berestored, and shall be reverted in the impairment loss recognized in respect of the non-current assets which areapplicable to relevant measurement provisions after classification into the category of held for sale, with thereverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shallnot 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 thecondition of being classified as held for sale or the non-current assets are removed from the disposal group heldfor 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 thedepreciation, amortization or impairment that should have been recognized given they are not classified as heldfor sale;(II) The recoverable amount.
14. Long-term equity investmentLong-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 orsignificant influence of the Group is accounted for as available-for-sale financial assets or financial assetsmeasured at fair value with any change in fair value charged to profit or loss.(1) Determination of initial investment costInvestment costs of the long-term equity investment are recognized by the follow according to different way ofacquirement:
①For a long-term equity investment acquired through a business combination involving enterprises undercommon control, the initial investment cost of the long-term equity investment shall be the absorbing party’sshare 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 equityinvestment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by theabsorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retainedearnings 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 ofthe 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 costof the long-term equity investment and total face value of the shares issued shall be used to offset against thecapital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For businesscombination resulted in an enterprise under common control by acquiring equity of the absorbing party undercommon 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 willbe accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initialinvestment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount ofthe 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 thecarrying amount of the long-term equity investment before merging and the carrying amount the additionalconsideration 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 incomerecognized as a result of the previously held equity investment accounted for using equity method on the date ofcombination 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 onthe 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 notunder 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”. Ifthey belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtainingcontrol. 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 investmentpreviously held by the acquire and the additional investment cost. For previously held equity accounted for usingequity method, relevant other comprehensive income will not be accounted for. For previously held equityinvestment classified as available-for-sale financial asset, the difference between its fair value and carryingamount, as well as the accumulated movement in fair value previously included in the other comprehensiveincome shall be transferred to profit or loss for the current period.) plus the combination cost measured by costswhich have directly connection with acquisition are considered as initial investment cost of such long-term equityinvestment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of theparty being combined as at the combination date are all measured at fair values, without consideration to amountof minority interests. The surplus of combination cost less fair value net realizable assets of the party beingcombined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains andlosses.
③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined accordingto actual payment for purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities isdetermined at fair value of such securities;C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange withnon-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 atfair 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
investor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no adjustmentshall be made to the initial investment cost. Where the initial investment cost is less than the investor’s interest inthe 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 profitdistribution 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 valuesof 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 theinvestee and the Company, the financial statements of the investee shall be adjusted in conformity with theaccounting policies and accounting periods of the Company. Investment gain and other comprehensive incomeshall be recognized accordingly. In respect of the transactions between the Group and its associates and jointventures in which the assets disposed of or sold are not classified as operation, the share of unrealized gain or lossarising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investmentgain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions betweenthe 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, whichresulted in acquisition of long-term equity investment by the investor without obtaining control, the initialinvestment cost of additional long-term equity investment shall be the fair value of disposed operation. Thedifference between initial investment cost and the carrying value of disposed operation will be fully included inprofit or loss for the current period. In the event that the Group sold an asset classified as operation to itsassociates or joint ventures, the difference between the carrying value of consideration received and operationshall be fully included in profit or loss for the current period. In the event that the Company acquired an assetwhich 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 thelong-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 estimatedobligation assumed shall be provided for and charged to the profit or loss as investment loss for the period. Wherethe investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits aftersetting off against the share of unrecognized losses.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased oflong-term equity investment which was compared to fair value of identifiable net assets recognized which aremeasured based on the continuous measurement since the acquisition date (or combination date) of subsidiariesattributable to the Group calculated according to the proportion of newly acquired shares, the difference of whichrecognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retainedearnings.
④Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in asubsidiary 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 Methodof the Consolidated Financial Statements”.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of theinvestment 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 themovement 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 afterdisposal also accounted for cost equity method, other comprehensive income measured and reckoned under equitymethod or financial instrument before control of the investee unit acquired shall be accounted for in accordancewith the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis atthe time of disposal and shall be transferred to profit or loss for the current period on pro rata basis; among the netassets of investee unit recognized by equity method (excluding net profit or loss, other comprehensive income andprofit 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 preparingseparate financial statements, the remaining equity interest which can apply common control or impose significantinfluence over the investee after disposal shall be accounted for using equity method. Such remaining equityinterest shall be treated as accounting for using equity method since it is obtained and adjustment was madeaccordingly. For remaining equity interest which cannot apply common control or impose significant influenceover the investee after disposal, it shall be accounted for using the recognition and measurement standard offinancial instruments. The difference between its fair value and carrying amount as at the date of losing controlshall be included in profit or loss for the current period. In respect of other comprehensive income recognizedusing equity method or the recognition and measurement standard of financial instruments before the Groupobtained control over the investee, it shall be accounted for in accordance with the same accounting treatment fordirect 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 toprofit 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 usingthe 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 equityinvestment by the Group, the remaining equity interest after disposal shall be accounted for using the recognitionand measurement standard of financial instruments. The difference between its fair value and carrying amount asat the date of losing common control or significant influence shall be included in profit or loss for the currentperiod. In respect of other comprehensive income recognized under previous equity investment using equitymethod, 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 investeeaccounted for and recognized using equity method) shall be transferred to profit or loss for the current period atthe 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. Thedifference between the disposal consideration for each transaction and the carrying amount of the correspondinglong-term equity investment of disposed equity interest before loss of control shall initially recognized as othercomprehensive income, and subsequently transferred to profit or loss arising from loss of control for the currentperiod 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 theparticipants or participant group whether have controlling over such arrangement as a group or not shall be judgefirstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participantsor not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions ofan 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 currentconvertible bonds and current executable warrant of the investee held by investors and other parties shall be thankover.
15. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased propertiesheld-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which aredirectly attributable to the asset. Cost of self construction of properties held for investment is composed ofnecessary expenses occurred for constructing those assets to a state expected to be available for use. Propertiesheld for investment by investors are stated at the value agreed in an investment contract or agreement, but thoseunder contract or agreement without fair value are stated at fair value.The Company adopts cost methodology amid subsequent measurement of properties held for investment, whiledepreciation 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 oflong-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 excessone 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 |
Electronic and other equipment | Straight-line depreciation | 3~10 | 5 | 9.50~31.67 |
As for the fixed assets with impairment accrual, calculated depreciation amount based on the accumulativenumber of impairment of fixed assets accrual.
(3) Recognization basis, valuation and depreciation method for financial lease assetsThe 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 expiryof 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 willexercise 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 fairvalue 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-“Longterm asset impairment”.
17. Construction in processFrom 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 orpricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are madeto the difference of the original value of fixed assets after final accounting is completed upon completion ofprojects.
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 exchangedifferences in connection with foreign currency borrowings. The borrowing costs of the Company, which incurfrom the special borrowings occupied by the fixed assets that need more than one year (including one year) forconstruction, development of investment properties or inventories or from general borrowings, are capitalized andrecorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit orloss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of thefollowing 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 costsBorrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after suchassets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the abovementioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as currentexpenditure during periods in which construction of fixed assets, investment real estate and inventory areinterrupted abnormally, when the interruption is for a continuous period of more than 3 months, until theacquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue whenthe qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckonedinto financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing costIn respect of the special borrowings borrowed for acquisition, construction or production and development of theassets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred inthe period less interest income derived from unused borrowings deposited in banks or less investment incomederived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development ofthe assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated andrecognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of theexpenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. Thecapitalization 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 of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technologyetc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other relatedcosts.The cost of an intangible asset contributed by an investor shall be determined in accordance with the valuestipulated in the investment contract or agreement, except where the value stipulated in the contract or agreementis not fair.The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, iscarried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at thecarrying 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 theCompany are amortized evenly with the shortest terms among expected useful life, benefit years regulated in thecontract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs andcurrent 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 expendituresExpenses 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, suchexpenses incurred are accounted for in the profit or loss for the current period. The development expenditurereckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses indevelopment stage listed as development expenditure in balance sheet, and shall be transfer as intangible assetssince such item reached its expected conditions for service.
20. Impairment of long-term assetThe 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 usefullife, investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlledentities and associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shallbe estimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assetsbeyond working conditions will be tested for impairment annually, regardless of whether there is any indication ofimpairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, theimpairment provision will be made according to the difference and recognized as an impairment loss. Therecoverable 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 anarm’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 shallbe 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 theasset for its intended sale. The present value of the future cash flows expected to be derived from the asset overthe course of continued use and final disposal is determined as the amount discounted using an appropriatelyselected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If itis not possible to estimate the recoverable amount of the individual asset, the Group shall determine therecoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assetscapable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financialstatements shall be allocated to the asset groups or group of assets benefiting from synergy of businesscombination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairmentloss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the assetgroup or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within theasset 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 ofthe restorable value.
21. Long-term Deferred ExpensesLong-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 expenseitems cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in theprofit or loss during recognition.
22. Employee compensation(1) Accounting treatment for short-term compensationDuring 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 whenstaff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilitiesand reckoned into current gains/losses, except for those in line with accounting standards or allow to reckonedinto capital costs; the welfares occurred shall reckoned into current gains/losses or relevant asses costs whileactually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/lossesor relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits aremeasured 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 thelabor union expenditure and employee education funds withdrawn by rule should be calculated and determined asthe corresponding compensation amount and determined the corresponding liabilities in accordance with thespecified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costsin the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefitThe 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 benefitplans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting for retirement benefitsWhen 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, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier. The early retirement plan shall be accounted for in accordance with the accounting principles forcompensation for termination of employment. The salaries or wages and the social contributions to be paid for theemployees who retire before schedule from the date on which the employees stop rendering services to thescheduled retirement date, shall be recognized (as compensation for termination of employment) in the currentprofit or loss by the Group if the recognition principles for provisions are satisfied.
(4)Accounting for other long-term employee benefitsExcept 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 planassets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated inaccordance with the expected accumulated welfare unit method by the independent actuary by adopting thetreasury bond rate with similar obligation term and currency. The service charges related to the supplementaryretirement benefits (including the service costs of the current period, the previous service costs, and the settlementgains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changesgenerated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in otherconsolidated 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 thecontingencies
24. Revenue
Dose the Company need to comply with disclosure requirements of the special industryNo
(1) Concrete judging criteria for time of recognizedThe major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retains thecontinued 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 bemeasured 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 goodsthat the buyers have received and inspected during the period of the last reconciliation date and this reconciliationdate with the buyers on the reconciliation date as agreed, and transfers the risks and remunerations to the buyersafter 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 thesales revenue realization according to the date of departure on the customs declaration.
(2) Recognition of revenue of assets using right alienationRevenue from use by others of enterprise assets shall be recognized only when the associated economic benefitcan 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 bereceived, 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 ofcompletion 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 isdetermined and recognized by adopting the percentage of completion method. The completion progress of servicetransaction 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 thereceived or receivable contract or agreement costs are not fair. On the balance sheet date, the service revenue of thecurrent period is determined by multiplying the total service revenue by the completion progress and deductingthe 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 oflabor services by the completion progress and deducting the amount accumulated in the previous accountingperiod with confirmed service costs.
For the service transaction results cannot be estimated reliably on the balance sheet date, respectively dispose asfollowing 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 atno consideration. Government grants are classified into government grants related to assets and government grantsrelated 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 forconstruction or other means.(2) Recognition and measureThe government grants shall be recognized while meet the additional conditions of the grants and amount isactually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amountreceived or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall bemeasured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatmentA government grant related to an asset shall be recognized as deferred income, and reckoned into currentgains/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, thanrecognized deferred income, and should reckoned into current gain/loss during the period while relevant expensesare recognized; if they making up relevant expenses and losses that occurred, than reckoned into currentgains/losses.A government grant related to daily operation activity of the Company should reckoned into other income; thosewithout 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 atno consideration. Government grants are classified into government grants related to assets and government grantsrelated 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 forconstruction or other means.(2) Recognition and measureThe government grants shall be recognized while meet the additional conditions of the grants and amount isactually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amountreceived or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall bemeasured at fair value. Measured by nominal amount if the fair value can not be reliably acquired.(3) Accounting treatmentA government grant related to an asset shall be recognized as deferred income, and should be reckoned intocurrent gain/loss according to the depreciation process of the use of such assets life.A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit orloss over the useful life of the asset.A government grant related to daily operation activity of the Company should reckoned into other income; thosewithout 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 andliability 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 isused to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidenceshowing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference infuture 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 futureperiods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable toobtain 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 intocurrent gains/losses, excluding the follow income tax:
①Enterprise combination;②Transactions or events recognized in owner’s equity directly
27. Lease(1) Accounting for operating leaseThe 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 directcosts 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, thecompany shall deduct the expenses from the total rental costs, share by the deducted rental costs during the leaseterm, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall beamortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasingtransaction 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 theentire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, thecompany shall deduct the expenses from the total rental income, and distribute by the deducted rental costs duringthe lease term.
(2) Accounting for financing leaseAssets 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 dateof the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with differencerecognized as unrecognized financing expenses. Unrecognized financing expenses shall be reckoned in financialexpenses 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, andrecognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to therental transaction, the company reckons in the initial measurement of the finance lease receivables, and reducesthe amount of income confirmed in the lease term.
28. Other important accounting policy and accounting estimationIn 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 accuratelymeasured. 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 currentestimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilitiesto be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis ofcontinuing operations, the changes in accounting estimates only affect the current period, of which the impacts arerecognized in the current period; the changes in accounting estimates not only affect the current period but also thefuture 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, estimateand assume are as follows:
(1) Provision for bad debtsAccording to the accounting policies of the accounts receivable, the Company adopts the allowance method tocalculate 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
be changed.
(2) Inventory impairmentAccording to the inventory accounting policies, the Company measures by the comparison between the cost andthe net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, theCompany 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, andjudge and estimate the impacts of events after the balance sheet date. The actual results and the differencesbetween the previously estimated results shall affect the book value of inventory and the provision or return of theinventory 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 orascertainable repayment amount and fixed due date, and that the Company has the positive intention and ability tohold to maturity as the held-to-maturity investment. This classification involves a lot of judgments. In the processof 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), ifthe Company fails to hold these investments till the maturity date, then all the investments shall be reclassified tothe available-for-sale financial assets which cannot be classified as the held-to-maturity investments in this fiscalyear and the next two fiscal years. This kind of case may have a significant impact on the relevant financial assetsvalue listed on the financial statements, and may affect the Company's financial instruments risk managementstrategy.
(4) Impairment of held-to-maturity investmentsThe Company determines that the impairment of held-to-maturity investments largely relies on management'sjudgments. The objective evidences of impairment include that the issuer has serious financial difficulties so thatthe 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 cashflows of the investment.
(5) Impairment of financial assets available for saleThe Company determines that the impairment of held-to-maturity investments largely relies on management'sjudgments and assumptions so as to determine whether it is needed to affirm its impairment loss in the profitstatement. In the process of making the judgments and assumptions, the Company needs to evaluate the extent andduration when the fair value of the investment is less than the cost, as well as the financial situation and short-termbusiness prospects of the investees, including the industry conditions, technological change, credit rating, defaultrates, and risks of the counterparty.
(6) Preparation for the impairment of non-financial & non-current assetsThe Company checks whether the non-current assets except for the financial assets may decrease in value at thebalance 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 forthe 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 netamount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, itindicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement pricesimilar to the assets in the fair trade or the observable market price, and subtract the incremental costsdetermination 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 tothe output, price, and related operating expenses of the asset (or asset group) and the discount rate used forcalculating 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 expensesbased on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating thepresent 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 flowsgenerated by the asset group or the combination of asset group, and select the proper discount rate to determine thepresent value of the future cash flows.
(7) Depreciation and amortizationThe Company depreciates and amortizes the investment property, fixed assets and intangible assets according tothe straight-line method in the service life after considering the residual value. The Company regularly reviews theservice 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 expectedtechnological updating. If the previous estimates have significant changes, the depreciation and amortizationexpense 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 toget approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimatedamount, the difference shall have an impact on its current and deferred income taxes during the final identificationperiod.
(9) Early retirement benefits and supplementary retirement benefitsThe expenses of the Company's early retirement benefits and supplementary retirement benefits and the amount ofliabilities 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 andthe other factors. The differences between the actual results and assumptions will be immediately identified andincluded in the costs of the current year. Although the management thought the reasonable assumptions have beenadopted, the changes in the actual experience and assumed conditions will impact the costs and liability balancesof 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
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
30. Other
Nil
VI. Taxation
1. Major taxes and tax rates
Tax | Basis | Tax rate |
VAT | Taxable income | Tax rate of 17%/16%, 11%/10%, 6% and 5%, rate for exported commodities is stipulated by the state with declaration of export tax rebate, rate of tax may be “exempted, credited and refunded” |
City maintaining & construction tax | Turnover tax payable | 7% |
Corporation income tax | Taxable income | 25%、15% |
Educational surtax | Turnover tax payable | 5% |
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 (Wuhan), Weifu Leader (Chongqing), Weifu Leader (Nanchang) | 25% |
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 ProvincialOffice, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732000007. Corporate income tax of theCompany 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 ProvincialOffice, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732004010. Corporate income tax of theWeifu 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 ProvincialOffice, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001828. Corporate income tax of theWeifu 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, ZhejiangProvincial 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 ProvincialOffice, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201732001043. Corporate income tax of theWeifu Autocam shall be taxed by 15% in three years since 1 January 2017 in accordance with State regulations.
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
Item | Closing balance | Opening balance |
Cash on hand | 594,764.72 | 736,773.22 |
Cash in bank | 2,941,916,050.54 | 3,027,702,581.00 |
Other monetary fund | 100,198,959.99 | 90,270,058.61 |
Total | 3,042,709,775.25 | 3,118,709,412.83 |
Other explanation
Separate explanation is required for accounts with restricted application purposes, deposited overseas and ofpotential recovery risks arising from pledge, mortgage or frozen:
Item | 2018-06-30 | 2017-12-31 |
Bank acceptance bill, L/C and other collateral | 99,317,091.42 | 89,623,690.04 |
Frozen dividend | 881,868.57 | 646,368.57 |
Total | 100,198,959.99 | 90,270,058.61 |
Other note:
The frozen dividend of RMB 881,868.57 represents the part of dividends distributed by SDEC Power (stock code:
600841) and Miracle Automation (stock code: 002009) in 2017 and 2018 held by the Company as financial assetsavailable 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 | 1,605,304,038.52 | 1,399,006,661.54 |
Commercial acceptance bill | 71,633,114.51 | 65,250,273.29 |
Total | 1,676,937,153.03 | 1,464,256,934.83 |
(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 | 389,454,825.85 |
Total | 389,454,825.85 |
(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 | 552,021,420.12 | |
Total | 552,021,420.12 |
(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
Types | Closing balance | Opening balance | ||||||||
Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Receivables with bad debt provision accrual by credit portfolio | 2,389,037,510.65 | 99.93% | 14,082,173.32 | 0.59% | 2,374,955,337.33 | 2,006,937,035.11 | 99.90% | 11,359,204.21 | 0.57% | 1,995,577,830.90 |
Accounts with single significant amount and bad debts provision accrued individually | 1,594,678.10 | 0.07% | 1,594,678.10 | 100.00% | 1,935,107.25 | 0.10% | 1,935,107.25 | 100.00% | ||
Total | 2,390,632,188.75 | 100.00% | 15,676,851.42 | 0.66% | 2,374,955,337.33 | 2,008,872,142.36 | 100.00% | 13,294,311.46 | 0.66% | 1,995,577,830.90 |
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:
√ Applicable □ Not applicable
In RMB
Age | Closing balance | ||
Account receivable | Bad debt reserve | Accrual ratio | |
Sub item of within one year | |||
Within 6 months | 2,307,180,116.48 | ||
6 months to 1 year | 64,424,536.74 | 6,442,453.69 | 10.00% |
Subtotal of within 1 year | 2,371,604,653.22 | 6,442,453.69 | |
1-2 years | 10,503,584.81 | 2,100,742.93 | 20.00% |
2-3 years | 2,317,159.87 | 926,863.95 | 40.00% |
Over 3 years | 4,612,112.75 | 4,612,112.75 | 100.00% |
Total | 2,389,037,510.65 | 14,082,173.32 | 0.59% |
Explanation on combination determines:
Excluding the account receivable accrual impairment provision separately; based on actual loss ratio of thereceivable groups that owes same or similar risk features, which has classify by age in previous years, determineaccrual 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 2,905,380.31 Yuan; the amount collected or switches back amounting to 512,580.00 Yuan.Important bad debt provision collected or switch back: NilThe bad-debt provisions transferred back in the current period are mainly the bad-debt provisions counting and drawing at the end ofthe prior period were withdrawn by means of monetary fund and banknotes in the current period;
(3) Account receivable actual charge off in the period
In RMB
Item | Amount written off |
Other small companies | 10,260.35 |
Major written-off for the major receivable:
Nil
(4) Top 5 receivables at ending balance by arrears partyTotal period-end balance of top five receivables by arrears party amounting to 1,282,384,362.70 Yuan, takes
53.64 percent of the total account receivable at period-end, bad debt provision accrual correspondingly at
period-end amounting as 3,325,257.94 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
Age | Closing balance | Opening balance | ||
Amount | Ratio | Amount | Ratio | |
Within one year | 91,326,612.65 | 91.46% | 94,641,350.21 | 96.99% |
1-2 years | 8,119,187.54 | 8.13% | 2,550,321.91 | 2.61% |
2-3 years | 291,797.54 | 0.29% | 319,185.79 | 0.33% |
Over 3 years | 122,524.57 | 0.12% | 65,339.97 | 0.07% |
Total | 99,860,122.30 | -- | 97,576,197.88 | -- |
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 objectTotal period-end balance of top five advance payment by prepayment object amounted to 43,603,202.61 Yuan,
takes 43.66 percent of the total advance payment at period-end.5. Interest receivable(1) Category
In RMB
Item | Closing balance | Opening balance |
Time deposit | 1,480,250.00 | 2,281,979.17 |
Total | 1,480,250.00 | 2,281,979.17 |
(2) Major overdue interest
Nil
6. Dividends payable(1) Dividends payable
In RMB
Item (or invested unit) | Closing balance | Opening balance |
RBCD | 303,884,540.74 | |
Zhonglian Automobile Electronic Co., Ltd. | 239,400,000.00 | |
Shanghai CD Dengtong Equity Investment | 2,985,075.00 | |
Total | 546,269,615.74 |
(2) Important dividends payable with account age over one year
Nil
7. Other accounts receivable(1) Other accounts receivable by category
In RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Other account receivable with single significant amount and withdrawal bad debt provision separately | 2,775,552.63 | 11.93% | 2,775,552.63 | 100.00% | 2,775,552.63 | 25.60% | 2,775,552.63 | 100.00% | ||
Other receivables with bad debt provision accrual by credit portfolio | 20,492,491.25 | 88.07% | 2,652,606.18 | 12.94% | 17,839,885.07 | 8,067,466.20 | 74.40% | 2,852,842.79 | 35.36% | 5,214,623.41 |
Total | 23,268,043.88 | 100.00% | 5,428,158.81 | 23.33% | 17,839,885.07 | 10,843,018.83 | 100.00% | 5,628,395.42 | 51.91% | 5,214,623.41 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Account receivable(units) | Closing balance | |||
other receivable | Bad debt reserve | Accrual ratio | Reasons | |
American HESS | 1,514,671.20 | 1,514,671.20 | 100.00% | Bankruptcy |
Nanjing Jinning Machinery Factory | 1,260,881.43 | 1,260,881.43 | 100.00% | Un-recyclable |
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
Age | Closing balance | ||
Other accounts receivable | Bad debt provision | Accrual ratio | |
Sub item of within one year | |||
Within 6 months | 17,570,796.64 | ||
6 months to one year | 142,703.03 | 14,270.30 | 10.00% |
Subtotal within one year | 17,713,499.67 | 14,270.30 | |
1-2 years | 19,594.63 | 3,918.93 | 20.00% |
2-3 years | 208,300.00 | 83,320.00 | 40.00% |
Over 3 years | 2,551,096.95 | 2,551,096.95 | 100.00% |
Total | 20,492,491.25 | 2,652,606.18 | 12.94% |
Explanations on combination determine:
Explanations on combination determine: Excluding the other account receivable accrual impairment provisionseparately; based on actual loss ratio of the receivable groups that owes same or similar risk features, which hasclassify 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 18,392.08Yuan; the amount collected or switches back amounting to 218,628.69 Yuan.The major switch back or collected of the bad debt provision in the Period: NilThe bad-debt provisions transferred back in the current period are mainly the bad-debt provisions counting and drawing at the end ofthe prior period were withdrawn by means of banknotes in the current period;
(3) Other receivables actually written-off during the reporting period
Nil
(4) Other receivables by nature
In RMB
Nature | Ending book balance | Opening book balance |
Intercourse funds receivable from units | 13,940,315.41 | 4,883,788.59 |
Cash deposit | 3,534,058.10 | 3,457,080.65 |
Staff loans and petty cash | 5,342,707.17 | 2,099,504.91 |
Other | 450,963.20 | 402,644.68 |
Total | 23,268,043.88 | 10,843,018.83 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Company | Nature | Ending balance | Age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
Baodun (Tianjin) Electrical Co., Ltd. | Intercourse funds of unit | 10,000,000.00 | Within 6 months | 42.98% | |
Ningbo Jiangbei High-Tech Industry Park Development Construction Co., Ltd. | Performance bond | 1,767,000.00 | Over 3 years | 7.59% | 1,767,000.00 |
American HESS | Advance payment transfer-in | 1,514,671.20 | Specific identification | 6.51% | 1,514,671.20 |
Nanjing Jinning Machinery Factory | Intercourse funds of unit | 1,260,881.43 | Specific identification | 5.42% | 1,260,881.43 |
Nanjing Yinkun Tongchang Assets Management Co., Ltd. | Intercourse funds of unit | 883,610.10 | Within 6 months | 3.80% | |
Total | -- | 15,426,162.73 | -- | 66.30% | 4,542,552.63 |
(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
8. Inventory(1) Inventory classification
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
Raw materials | 440,849,100.13 | 81,123,527.46 | 359,725,572.67 | 444,304,506.71 | 83,879,268.03 | 360,425,238.68 |
Goods in process | 161,751,574.16 | 15,483,517.38 | 146,268,056.78 | 198,648,407.88 | 15,483,517.38 | 183,164,890.50 |
Finished goods | 894,902,092.67 | 159,200,176.74 | 735,701,915.93 | 1,098,294,008.21 | 162,945,096.69 | 935,348,911.52 |
Total | 1,497,502,766.96 | 255,807,221.58 | 1,241,695,545.38 | 1,741,246,922.80 | 262,307,882.10 | 1,478,939,040.70 |
(2) Inventory depreciation reserve
In RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
Accrual | Other | Switch back or write-off | Other | |||
Raw materials | 83,879,268.03 | 1,300,000.00 | 4,055,740.57 | 81,123,527.46 | ||
Goods in process | 15,483,517.38 | 15,483,517.38 | ||||
Finished goods | 162,945,096.69 | 3,744,919.95 | 159,200,176.74 | |||
Total | 262,307,882.10 | 1,300,000.00 | 7,800,660.52 | 255,807,221.58 |
① Net realizable value of the inventory refers to: during the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed, sales price estimated and relevanttaxes.
② Accrual basis for inventory depreciation reserve:
Item | Accrual basis for inventory impairment provision | Specific basis for recognization |
Materials on hand | The materials sold due to finished goods manufactured, its net realizable value is lower than the book value | Results from the estimated sale price of such inventory less the cost what will happen, estimated sales expenses and relevant taxes till the goods completed |
Goods in process | The goods in process sold due to finished goods manufactured, its net realizable value is lower than the book value | Results from the estimated sale price of such inventory less the cost what will happen, estimated sales expenses and relevant taxes till the goods completed |
Finished goods | its net realizable value is lower than the book value | Results from the estimated sale price less the vary taxes which shall be taken in process of sales |
③Reasons of switch-back for inventory falling price reserves:
Item | Reasons of switch-back |
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 inventoryNil(4) Assets completed without unsettlement from construction contract at period-endNil9. Other current assets
In RMB
Item | Closing balance | Opening balance |
Entrust financing products | 4,549,580,000.00 | 3,841,320,000.00 |
Receivable export tax rebates | 15,440,435.90 | 14,289,026.22 |
Prepaid taxes and VAT retained | 19,725,423.93 | 25,338,518.05 |
Input tax to be deducted and certification | 1,090,087.75 | 2,568,145.27 |
Other | 443,853.15 | 4,481,600.99 |
Total | 4,586,279,800.73 | 3,887,997,290.53 |
10. Financial assets available for sale(1) Particular about financial assets available for sale
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
Instrument equity available for sale: | 518,669,466.95 | 59,433,106.95 | 459,236,360.00 | 469,495,975.95 | 59,433,106.95 | 410,062,869.00 |
Measured by fair | 178,332,264.00 | 178,332,264.00 | 266,376,600.00 | 266,376,600.00 |
value | ||||||
Measured by cost | 340,337,202.95 | 59,433,106.95 | 280,904,096.00 | 203,119,375.95 | 59,433,106.95 | 143,686,269.00 |
Other -- financial products | 20,000,000.00 | 20,000,000.00 | 178,080,000.00 | 178,080,000.00 | ||
Total | 538,669,466.95 | 59,433,106.95 | 479,236,360.00 | 647,575,975.95 | 59,433,106.95 | 588,142,869.00 |
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Type | Instrument equity available for sale | Instrument debt available for sale | Total |
Cost /liability of equity instrument/ amortization cost of debt instrument | 144,371,235.00 | 144,371,235.00 | |
Fair value | 178,332,264.00 | 178,332,264.00 | |
Amount of fair value changes that accumulatively reckoned in other comprehensive gains | 33,961,029.00 | 33,961,029.00 |
(3) Financial assets available for sale measured by cost at period-end
In RMB
The invested entity | Book balance | Depreciation reserves | Ratio of share-holding in invested entity | Cash dividend | ||||||
Period-beginning | Increased | Decreased | Period-end | Period-beginning | Increased | Decreased | Period-end | |||
Guolian Securities | 12,000,000.00 | 12,000,000.00 | 0.95% | |||||||
Guangxi Liufa Co., Ltd. | 1,600,000.00 | 1,600,000.00 | 1,600,000.00 | 1,600,000.00 | 1.22% | |||||
Financial Company of Changchai Group Co., Ltd. | 800,000.00 | 800,000.00 | 800,000.00 | 800,000.00 | ||||||
HEJUN VANGUARD GROUP | 33,000,000.00 | 33,000,000.00 | 33,000,000.00 | 33,000,000.00 | 11.72% | |||||
Nanjing | 1,000,000.0 | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 1.85% |
Hengtai Insurance and Broker Co., Ltd. | 0 | |||||||||
Henan Gushi Weining Oil Pump & Nozzle Co., Ltd. | 2,033,106.95 | 2,033,106.95 | 2,033,106.95 | 2,033,106.95 | ||||||
Beijing Zhike Industrial Investment Holding Group Co., Ltd.(Note) | 86,940,000.00 | 86,940,000.00 | 11,000,000.00 | 11,000,000.00 | 12.66% | |||||
Wuxi Xidong Technological Industry Park Co., Ltd. | 5,000,000.00 | 5,000,000.00 | 1.43% | |||||||
Shanghai IMS Automotive Electronic System Co., Ltd. | 10,000,000.00 | 10,000,000.00 | 10,000,000.00 | 10,000,000.00 | 12.27% | |||||
Shanghai CD Dengtong Equity Investment Fund | 50,746,269.00 | 14,925,373.00 | 35,820,896.00 | 14.93% | ||||||
Protean Holdings Corp. | 152,143,200.00 | 152,143,200.00 | ||||||||
Total | 203,119,375.95 | 152,143,200.00 | 14,925,373.00 | 340,337,202.95 | 59,433,106.95 | 59,433,106.95 | -- |
The 15
th
meeting of the eighth board of directors of the company reviewed and approved the Proposal on Foreign
Investment. The company will invest 30 million US dollars in the E-round preferred stock issued by Protean andthe two parties will establish a Sino-foreign joint venture in China. According to the investment cooperationagreement, the company paid the initial investment of 24 million US dollars on May 21, 2018. The companyobtained the equity certificate of subscribing 10,212,765 shares of E-round preferred stock issued by Protean andbecame a shareholder of the Protean E-round preferred stock with the equity certificate number of Number E-1.
(4) Changes of impairment in Period
In RMB
Type | Instrument equity available for sale | Instrument debt available for sale | Total |
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 contemporarilyat period-end, without impairment provision is made
Nil
11. Long-term equity investment
In RMB
The invested entity | Opening balance | +,- | Closing balance | Ending balance of impairment provision | |||||||||
Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||||
I. Joint venture | |||||||||||||
Wuxi Weifu Environment Protection Catalyst Co., Ltd. | 522,882,789.26 | 42,852,567.41 | 565,735,356.67 | ||||||||||
Subtotal | 522,882,789.26 | 42,852,567.41 | 565,735,356.67 | ||||||||||
II. Associated enterprise | |||||||||||||
RBCD | 2,608,796,934.00 | 706,611,723.39 | 607,769,081.48 | 2,707,639,575.91 | |||||||||
Zhonglian | 959,036,193.36 | 211,952,191.28 | 239,400,000.00 | 931,588,384.64 |
Automobile Electronic Co., Ltd. | |||||||||||
Weifu Precision Machinery Manufacturing Co., Ltd. | 49,348,908.96 | 6,943,964.90 | 56,292,873.86 | ||||||||
Subtotal | 3,617,182,036.32 | 925,507,879.57 | 847,169,081.48 | 3,695,520,834.41 | |||||||
Total | 4,140,064,825.58 | 968,360,446.98 | 847,169,081.48 | 4,261,256,191.08 |
12. 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 | ||||
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 | 40,000,494.70 | 40,000,494.70 | ||
2. Increased in the period | 783,301.87 | 783,301.87 | ||
(1) Accrual or amortization | 783,301.87 | 783,301.87 | ||
3. Decreased in the period | ||||
(1) Disposal | ||||
(2) Other transfer-out | ||||
4.Closing balance | 40,783,796.57 | 40,783,796.57 |
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 | 22,761,528.91 | 22,761,528.91 | ||
2. Opening Book value | 23,544,830.78 | 23,544,830.78 |
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
Nil
13. Fixed assets(1) Fixed assets
In RMB
Item | Housing buildings | Machinery equipment | Transportation equipment | Electronic and other equipment | Total |
I. Original book value | |||||
1.Opening balance | 1,537,881,197.20 | 2,214,135,391.61 | 40,678,767.59 | 423,482,779.18 | 4,216,178,135.58 |
2. Increased in the period | 13,805,750.48 | 122,279,067.31 | 2,666,200.95 | 53,131,026.10 | 191,882,044.84 |
(1) Purchase | 17,920,740.54 | 208,172.41 | 3,737,953.77 | 21,866,866.72 | |
(2) Construction in process transfer-in | 13,805,750.48 | 104,358,326.77 | 2,458,028.54 | 49,393,072.33 | 170,015,178.12 |
(3) Increased by combination | |||||
3. Decreased in the Period | 15,081,226.35 | 7,279,444.18 | 10,203,624.37 | 32,564,294.90 | |
(1) Disposal or scrapping | 15,081,226.35 | 7,279,444.18 | 10,203,624.37 | 32,564,294.90 | |
4.Closing balance | 1,551,686,947.68 | 2,321,333,232.57 | 36,065,524.36 | 466,410,180.91 | 4,375,495,885.52 |
II. Accumulated depreciation | |||||
1.Opening balance | 283,668,171.81 | 1,077,183,649.52 | 29,697,332.26 | 185,833,218.62 | 1,576,382,372.21 |
2. Increased in the period | 25,793,559.46 | 84,971,976.30 | 1,517,629.56 | 29,730,334.80 | 142,013,500.12 |
(1) Accrual | 25,793,559.46 | 84,971,976.30 | 1,517,629.56 | 29,730,334.80 | 142,013,500.12 |
3. Decreased in the Period | 14,791,563.81 | 6,421,864.04 | 1,632,480.02 | 22,845,907.87 | |
(1) Disposal or scrapping | 14,791,563.81 | 6,421,864.04 | 1,632,480.02 | 22,845,907.87 | |
4.Closing balance | 309,461,731.27 | 1,147,364,062.01 | 24,793,097.78 | 213,931,073.40 | 1,695,549,964.46 |
III. Depreciation reserves | |||||
1.Opening balance | 48,038,049.98 | 73,320.38 | 6,811,764.47 | 54,923,134.83 | |
2. Increased in the period | |||||
(1) Accrual | |||||
3. Decreased in the Period | 534,612.88 | 0.48 | 0.64 | 534,614.00 | |
(1) Disposal or scrapping | 534,612.88 | 0.48 | 0.64 | 534,614.00 | |
4.Closing balance | 47,503,437.10 | 73,319.90 | 6,811,763.83 | 54,388,520.83 | |
IV. Book value | |||||
1. Ending Book value | 1,242,225,216.41 | 1,126,465,733.46 | 11,199,106.68 | 245,667,343.68 | 2,625,557,400.23 |
2. Opening 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) 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 | 2,876,014.42 | Still in process of relevant property procedures |
Plant and office building of Weifu Chang’an | 44,885,378.07 | Still in process of relevant property procedures |
14. Construction in progress(1) Construction in progress
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
2nd Phase construction project in industrial park | 3,530,380.40 | 3,530,380.40 | 3,364,768.05 | 3,364,768.05 | ||
Weifu Tianli Technical Transformation Project | 18,086,324.59 | 18,086,324.59 | 16,518,417.24 | 16,518,417.24 | ||
Technical transformation of parent company | 51,456,827.21 | 1,470,033.00 | 49,986,794.21 | 23,611,775.63 | 1,470,033.00 | 22,141,742.63 |
Technical transformation of Weifu Autocam | 84,307,233.92 | 84,307,233.92 | 32,705,249.53 | 32,705,249.53 | ||
Other project | 41,794,711.58 | 2,096,342.62 | 39,698,368.96 | 27,711,626.45 | 2,096,342.62 | 25,615,283.83 |
Total | 199,175,477.70 | 3,566,375.62 | 195,609,102.08 | 103,911,836.90 | 3,566,375.62 | 100,345,461.28 |
(2) Changes of major projects under construction
In RMB
Item | Budget | Opening balance | increased in the Period | Fixed assets transfer-in in the Period | Other decreased in the Period | Closing balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
2nd Phase construction project in industrial park | 3,364,768.05 | 7,282,775.95 | 7,117,163.60 | 3,530,380.40 | Other |
Weifu Tianli Technical Transformation Project | 16,518,417.24 | 1,567,907.35 | 18,086,324.59 | Other | ||||||||
Technical transformation of parent company | 23,611,775.63 | 90,442,603.61 | 62,597,552.03 | 51,456,827.21 | Other | |||||||
Technical transformation of Weifu Autocam | 32,705,249.53 | 88,909,818.12 | 37,307,833.73 | 84,307,233.92 | Other | |||||||
Total | 76,200,210.45 | 188,203,105.03 | 107,022,549.36 | 157,380,766.12 | -- | -- | -- |
(3) The provision for impairment of construction projectsNil15. Intangible assets(1) Particular about intangible assets
In RMB
Item | Land use right | Patent | Non-patent technology | Trademark and trademark license | Computer software | Total |
I. Original book value | ||||||
1.Opening balance | 382,073,520.00 | 3,539,793.05 | 41,597,126.47 | 51,218,449.46 | 478,428,888.98 | |
2. Increased in the period | 1,181,977.78 | 1,181,977.78 | ||||
(1) Purchase | 1,181,977.78 | 1,181,977.78 | ||||
(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 | 52,400,427.24 | 479,610,866.76 | |
II. Accumulated amortization |
1.Opening balance | 70,825,229.06 | 2,271,368.77 | 9,709,000.00 | 38,344,247.79 | 121,149,845.62 | |
2. Increased in the period | 4,190,708.88 | 176,989.86 | 4,559,690.41 | 8,927,389.15 | ||
(1) Accrual | 4,190,708.88 | 176,989.86 | 4,559,690.41 | 8,927,389.15 | ||
3. Decreased in the period | ||||||
(1) Disposal | ||||||
4.Closing balance | 75,015,937.94 | 2,448,358.63 | 9,709,000.00 | 42,903,938.20 | 130,077,234.77 | |
III. Impairment provision | ||||||
1.Opening balance | 16,646,900.00 | 16,646,900.00 | ||||
2. Increased in the period | ||||||
(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 | 307,057,582.06 | 1,091,434.42 | 15,241,226.47 | 9,496,489.04 | 332,886,731.99 | |
2. Opening Book value | 311,248,290.94 | 1,268,424.28 | 15,241,226.47 | 12,874,201.67 | 340,632,143.36 |
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
16. Goodwill(1) Original book value of goodwill
In RMB
The invested entity or items | Opening balance | Increase during the period | Decreased during the period | Closing balance |
Weifu Tianli | 1,784,086.79 | 1,784,086.79 | ||
Total | 1,784,086.79 | 1,784,086.79 |
(2) Goodwill depreciation reservesNil
Other noteGoodwill of the Weifu Tianli: the Company controlling and combine Weifu Tianli by increasing the capital, thegoodwill is the number that combination cost greater than the fair value of identical net assets of Weifu Tianli
17. Long-term unamortized expenses
In RMB
Item | Opening balance | increased in the Period | Amortized in the Period | Other decrease | Closing balance |
Remodeling costs etc. | 2,969,770.81 | 6,075,566.34 | 1,093,846.42 | 7,951,490.73 | |
Total | 2,969,770.81 | 6,075,566.34 | 1,093,846.42 | 7,951,490.73 |
18. Deferred income tax assets and deferred income tax liabilities(1) Deferred income tax assets un-offset
In RMB
Item | Closing balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Bad debt reserves | 20,748,735.98 | 3,154,735.07 | 18,591,825.81 | 2,834,842.52 |
Inventory falling price reserves | 234,020,244.05 | 36,250,953.16 | 240,520,904.57 | 37,599,678.75 |
Fixed assets depreciation reserves | 20,198,782.12 | 3,246,011.41 | 20,459,349.51 | 3,285,096.52 |
Construction in process depreciation reserves | 3,566,375.62 | 534,956.34 | 3,566,375.62 | 534,956.34 |
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 reserves | 10,000,000.00 | 1,500,000.00 | 10,000,000.00 | 1,500,000.00 |
Deferred income | 436,541,555.15 | 65,499,039.14 | 447,676,720.31 | 67,151,508.04 |
Internal un-realized profit | 29,144,718.41 | 5,398,961.55 | 28,149,575.30 | 4,972,350.93 |
Payable salary, accrued expenses etc. | 531,770,116.00 | 81,259,345.81 | 526,642,684.53 | 81,166,909.39 |
Depreciation assets, amortization difference | 16,162,648.59 | 3,032,645.55 | 9,768,298.31 | 1,465,244.74 |
Total | 1,318,800,075.92 | 202,373,683.03 | 1,322,022,633.96 | 203,007,622.23 |
(2) Deferred income tax liabilities un-offset
In RMB
Item | Closing balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Asset evaluation increment for combination not under the same control | 13,121,739.54 | 1,968,260.92 | 13,491,849.42 | 2,023,777.40 |
Change of fair value for the financial assets available for sale | 33,961,029.00 | 5,094,154.34 | 102,552,300.00 | 15,382,844.99 |
Total | 47,082,768.54 | 7,062,415.26 | 116,044,149.42 | 17,406,622.39 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax assets | 202,373,683.03 | 203,007,622.23 | ||
Deferred income tax liabilities | 7,062,415.26 | 17,406,622.39 |
(4) Details of unrecognized deferred income tax assets
In RMB
Item | Closing balance | Opening balance |
Bad debt reserves | 356,274.25 | 330,881.07 |
Inventory falling price reserves | 21,786,977.53 | 21,786,977.53 |
Loss of subsidiary of Weifu ITM etc. | 145,170,897.49 | 160,376,822.42 |
Fixed assets depreciation reserves | 34,189,738.71 | 34,463,785.32 |
Provision for impairment of financial assets available for sale | 49,433,106.95 | 49,433,106.95 |
Total | 250,936,994.93 | 266,391,573.29 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year | Ending amount | Opening amount | Note |
2018 | 5,322,336.59 | 23,365,456.08 | 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 | 44,811,748.35 | 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 | 10,959,424.11 | Weifu Mashan and other subsidiaries have operating losses |
2023 | 2,837,194.56 | Weifu Leader (Wuhan) and Weifu Leader (Nanchang) have operating losses | |
Total | 145,170,897.49 | 160,376,822.42 | -- |
19. Other non-current assets
In RMB
Item | Closing balance | Opening balance |
Engineering equipment paid in advance | 203,344,783.19 | 195,088,675.74 |
Total | 203,344,783.19 | 195,088,675.74 |
20. Short-term loans(1) Types of short-term loans
In RMB
Item | Closing balance | Opening balance |
Debt of honor | 359,000,000.00 | 243,000,000.00 |
Total | 359,000,000.00 | 243,000,000.00 |
Note for types of short-term loans: Nil
(2) Overdue short-term loans without payment
Nil
21. Notes payable
In RMB
Type | Closing balance | Opening balance |
Bank acceptance | 1,086,240,637.65 | 947,976,759.10 |
Total | 1,086,240,637.65 | 947,976,759.10 |
Notes expired at period-end without paid was 0.00 Yuan.
22. Account payable(1) Account payable
In RMB
Item | Closing balance | Opening balance |
Within 1 year | 2,443,885,021.54 | 2,452,140,381.86 |
1-2 years | 74,618,775.30 | 43,524,905.85 |
2-3 years | 4,528,284.50 | 2,318,008.01 |
Over 3 years | 73,935,972.62 | 72,972,910.11 |
Total | 2,596,968,053.96 | 2,570,956,205.83 |
(2) Important account payable with account age over one year
Nil
23. Account received in advance(1) Account received in advance
In RMB
Item | Closing balance | Opening balance |
Within 1 year | 32,550,368.42 | 34,272,416.20 |
1-2 years | 4,880,699.28 | 7,271,092.26 |
2-3 years | 478,964.54 | 346,383.11 |
Over 3 years | 834,094.66 | 930,344.50 |
Total | 38,744,126.90 | 42,820,236.07 |
(2) Important account received in advance with account age over one year
Nil
(3) Project settled without completed from construction contract at end of the period
Nil
24. Wages payable(1) Wages payable
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Closing balance |
I. Short-term compensation | 147,444,265.93 | 552,717,728.57 | 551,598,001.98 | 148,563,992.52 |
II. Post-employment welfare- defined contribution plans | 34,299,401.90 | 75,365,636.13 | 86,492,467.45 | 23,172,570.58 |
III. Dismissed welfare | 3,397,642.16 | 2,534,994.78 | 862,647.38 | |
IV. Other welfare due within one year | 121,670,000.00 | 41,525,853.95 | 80,144,146.05 | |
V. Other short-term welfare-Housing subsidies, employee benefits and welfare funds | 20,967,367.30 | 75,247.00 | 1,001,395.68 | 20,041,218.62 |
Total | 327,778,677.29 | 628,158,611.70 | 683,152,713.84 | 272,784,575.15 |
(2) Short-term compensation
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Closing balance |
1. Wages , bonuses, allowances and subsidies | 128,145,458.85 | 444,358,686.59 | 442,039,905.59 | 130,464,239.85 |
2. Welfare for workers and staff | 0.00 | 36,510,439.50 | 36,510,439.50 | 0.00 |
3. Social insurance | 8,642,880.67 | 34,717,154.89 | 36,349,752.03 | 7,010,283.53 |
Including: Medical insurance | 6,749,035.02 | 27,589,802.57 | 28,777,883.18 | 5,560,954.41 |
Work injury insurance | 1,221,106.56 | 4,482,888.57 | 4,694,772.55 | 1,009,222.58 |
Maternity insurance | 672,739.09 | 2,644,463.75 | 2,877,096.30 | 440,106.54 |
4. Housing accumulation fund | 1,062,011.00 | 30,258,592.00 | 30,667,173.00 | 653,430.00 |
5. Labor union expenditure and personnel education expense | 9,593,915.41 | 6,872,855.59 | 6,030,731.86 | 10,436,039.14 |
Total | 147,444,265.93 | 552,717,728.57 | 551,598,001.98 | 148,563,992.52 |
(3) Defined contribution plans
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Item |
1. Basic endowment insurance | 17,818,243.64 | 63,188,840.92 | 67,471,461.20 | 13,535,623.36 |
2. Unemployment insurance | 1,664,483.26 | 1,600,662.13 | 1,622,429.76 | 1,642,715.63 |
3. Enterprise annuity | 14,816,675.00 | 10,576,133.08 | 17,398,576.49 | 7,994,231.59 |
Total | 34,299,401.90 | 75,365,636.13 | 86,492,467.45 | 23,172,570.58 |
Other explanation:
1. Post-employment welfare- defined contribution plans: The Company participates in the pension insurance andunemployment insurance plans established by government authorities by laws. Under these plans, the Companymakes monthly contribution to these plans based on 19% and 0.5% of the social insurance contribution base for2017 respectively. Other than the aforesaid monthly contribution, the Company takes no further paymentobligation. 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”
2. Dismiss welfare: The wages payable resulted from the implementation of inner retirement plan.25. Tax payable
In RMB
Item | Closing balance | Opening balance |
Value-added tax | 35,720,771.51 | 26,675,795.24 |
Enterprise income tax | 48,507,346.26 | 53,333,508.69 |
Individual income tax | 948,422.26 | 3,102,645.73 |
Urban maintenance and construction tax | 2,089,045.74 | 1,873,973.56 |
Educational surtax | 1,492,175.51 | 1,338,552.54 |
Other (including stamp tax and local funds) | 5,681,257.06 | 7,545,214.60 |
Total | 94,439,018.34 | 93,869,690.36 |
26. Interest payable
In RMB
Item | Closing balance | Opening balance |
Long-term borrowing interest for installment | 90,972.22 | 79,826.39 |
Interest payable for short-term loans | 464,037.50 | 322,102.04 |
Total | 555,009.72 | 401,928.43 |
Major overdue interest: Nil
27. Dividends payable
In RMB
Item | Closing balance | Opening balance |
Common stock dividends | 1,210,740,700.00 | |
Total | 1,210,740,700.00 |
Other explanation, including important dividend payables without payment over one year, and explained u-payment reasons:
Nil
28. Other payable(1) Classification of other payable according to nature of account
In RMB
Item | Closing balance | Opening balance |
Deposit and margin | 20,194,038.96 | 20,977,476.26 |
Social insurance and reserves funds that withholding | 7,139,777.20 | 7,689,385.68 |
Intercourse funds of units | 31,165,472.64 | 25,754,545.98 |
Other | 6,857,374.07 | 8,516,532.98 |
Total | 65,356,662.87 | 62,937,940.90 |
(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 |
Total | 4,500,000.00 | -- |
29. Noncurrent liabilities due within one year
In RMB
Item | Closing balance | Opening balance |
Long-term loans due within one year | 5,000,000.00 | 10,000,000.00 |
Total | 5,000,000.00 | 10,000,000.00 |
30. Long-term loans(1) Classification of long-term loans
In RMB
Item | Closing balance | Opening balance |
Guaranteed loan | 45,000,000.00 | 45,000,000.00 |
Total | 45,000,000.00 | 45,000,000.00 |
Note for classification of long-term loans: NilOther explanation, including interest rate interval: nil
31. 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] | 1,017,272.00 | 1,356,363.00 |
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 |
Hi-tech Branch of Nanjing Finance Bureau[note ⑩] | 2,250,000.00 | |
Total | 19,407,272.00 | 17,496,363.00 |
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 than15 years, financial supporting capital will be reimbursed.
[Note ②] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,the term is from 20 July 2006 to 20 July 2021. Provided that the operation period in the zone is less than 15years, 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 isless 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 localgovernment. The non-operating income transferred in was 1.87 million Yuan in 2011 which was confirmed notto return, if the Company pays back special funds of 3.73 million Yuan to the local government in 11 yearssince 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 isless 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 than15 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 lessthan 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 lessthan 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, theterm is from 18 December 2013 to 18 December 2028. Provided that the operation period in the zone is less than15 years, financial supporting capital will be reimbursed.
[Note ⑩]: Financial support funds are the support funds provided by the management office of Nanjing Intelligent
Manufacturing Industrial Park to encourage Weifu Jinning to enter Nanjing Intelligent Manufacturing IndustrialPark, and the allotted time is from February 11, 2018 to February 11, 2033. If the operating period in the area isless than 15 years, the financial support funds shall be refunded.
32. Long-term employee payable(1) Long-term employee payable
In RMB
Item | Closing balance | Opening balance |
II. Dismiss welfare | 13,782,896.07 | 13,782,896.07 |
III. Other long-term welfare | 16,665,236.81 | 16,665,236.81 |
Total | 30,448,132.88 | 30,448,132.88 |
(2) Change of defined benefit plans
Nil
33. Special payable
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Closing balance | Causes |
Removal compensation of subsidiary Weifu Jinning [note ] | 18,265,082.11 | 18,265,082.11 | |||
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 ofMing Great Wall. According to the house expropriation and compensation agreement in state-owned lands signedbetween Weifu Jinning and House Expropriation Management Office of Xuanwu District, Nanjing City, RMB19.7067 million in total are compensate, including operation losses from lessee RMB 1.4416 million in total. Theabove compensation was received in last period and is making up for the losses from lessee, and the above landsand property have not been collected up to 30 August 2018.
34. Deferred income
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Closing balance | Causes |
Government grand | 451,281,721.77 | 1,395,000.00 | 13,132,459.71 | 439,544,262.06 |
Total | 451,281,721.77 | 1,395,000.00 | 13,132,459.71 | 439,544,262.06 | -- |
Item with government grants involved:
In RMB
Item | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned into other income in the period | Cost reduction in the period | Other changes | Ending balance | Assets related/Income related |
Industrialization project for injection VE pump system with electronically controlled high pressure for less-emission diesel used | 3,605,001.46 | 721,000.30 | 2,884,001.16 | Assets related/Income related | ||||
Appropriation on reforming of production line technology and R&D ability of common rail system for diesel by distributive high-voltage | 7,100,000.00 | 7,100,000.00 | Assets related | |||||
Fund of industry upgrade (2012) | 60,400,000.00 | 60,400,000.00 | Income related | |||||
Fund of industry upgrade (2013) | 60,520,000.00 | 60,520,000.00 | Income related | |||||
Appropriation on central basic construction investment | 2,857,142.87 | 2,857,142.87 | Assets related | |||||
R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile | 9,956,904.72 | 9,956,904.72 | Assets related |
Research institute of motor vehicle exhaust aftertreatment technology | 3,116,125.34 | 3,116,125.34 | Assets related | |||||
Fund of industry upgrade (2014) | 36,831,000.00 | 36,831,000.00 | Income related | |||||
New-built assets compensation after the removal of parent company | 170,951,302.78 | 11,813,783.39 | 159,137,519.39 | Assets related | ||||
Fund of industry upgrade (2016) | 40,000,000.00 | 40,000,000.00 | Income related | |||||
Guiding capital for the technical reform from State Hi-Tech Technical Commission | 9,740,000.00 | 9,740,000.00 | Assets related | |||||
Implementation of the variable cross-section turbocharger for diesel engine | 12,438,231.54 | 12,438,231.54 | Assets related | |||||
Demonstration project for intelligent manufacturing | 1,808,806.64 | 880,000.00 | 2,688,806.64 | Assets related | ||||
Other | 31,957,206.42 | 515,000.00 | 597,676.02 | 31,874,530.40 | Assets related Income related | |||
Total | 451,281,721.77 | 1,395,000.00 | 13,132,459.71 | 439,544,262.06 | -- |
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 OutcomeTransferring 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 0.875million received in 2011. According to the contract, the attendance date of this project was: from October of 2009to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixedassets investment which are belongs to the government grand with assets/income concerned. In 2013, accepted bythe science & technology agency of Jiangsu Province, and RMB 4,789,997.04 with income related was reckonedinto 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 fordiesel engine use and production line technological transformation project: according to XCJ No. [2010] 59, theCompany 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 belongsto government subsidies related to assets, and will be amortized according to the depreciation process of theunderlying assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 andDocument Xi Xin Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated forindustry upgrading this year.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, XiXin Guan Jing Fa [2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, theCompany 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 thedocument Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment ofcapital construction from the central government in 2012. The project has passed the acceptance check in currentperiod, this appropriation should be amortized within the surplus service life of current assets.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine forautomobile: the Company received appropriated for the project in 2013 with 8.05 million Yuan in line withdocuments of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai GongMao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao [2014] No.58, Xi Ke Ji [2014] No. 246 and XiCai Gong Mao [2014] No.162. Received RMB 3 million in 2014 and RMB 0.45 million in 2015; and belongs togovernment grant with assets concerned, and shall be amortized according to the depreciation process.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader hasapplied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and WuxiScience and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. Thisdeclaration has been approved by Wuxi Huishan Science and Technology Bureau and Wuxi Science andTechnology Bureau in 2012, and the company has received appropriation of 2.4 million Yuan in 2012, andreceived appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related toassets and will be amortized according to the depreciation process.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 andXi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated forindustry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation receivedby the Company, and will be amortized according to the depreciation of new-built assets, amount of
11,813,783.39 Yuan amortize in the year.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 andXi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in2016.
(11) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with thedocument Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuanfor the guiding capital of technical reform (1st batch) from Wuxi for year of 2016, which included in thegovernment subsidy with assets-concerned, and will amortized according to the depreciation process afteracceptance
(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 andInformation Technology; and belongs to government grant with assets concerned, and shall be amortizedaccording to the depreciation process.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the IntelligentManufacturing Model Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 Yuanwas granted by relevant government authority in Huishan district to our subsidiary Weifu Leader in 2017, totally0.88 million Yuan appropriate funds received in the year, 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.35. Share capital
In RMB
Opening balance | Change during the period(+,-) | Closing balance | |||||
New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
Total shares | 1,008,950,570.00 | 1,008,950,570.00 |
36. Capital reserve
In RMB
Item | Opening balance | Increase during the period | Decreased during the period | Closing balance |
Capital premium (Share capital premium) | 3,372,647,413.97 | 3,372,647,413.97 | ||
Other Capital reserves | 45,193,988.92 | 1,824,597.47 | 43,369,391.45 | |
Total | 3,417,841,402.89 | 1,824,597.47 | 3,416,016,805.42 |
37. Other consolidated income
In RMB
Item | Opening balance | Current period | Closing balance | ||||
Account before income tax in the period | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
II. Other comprehensive income items which will be reclassified subsequently to profit or loss | 87,169,455.01 | -59,786,808.00 | 8,804,463.00 | -10,288,690.65 | -58,302,580.35 | 28,866,874.66 | |
Gains or losses arising from changes in fair value of available-for-sale financial assets | 87,169,455.01 | -59,786,808.00 | 8,804,463.00 | -10,288,690.65 | -58,302,580.35 | 28,866,874.66 | |
Total other consolidated income | 87,169,455.01 | -59,786,808.00 | 8,804,463.00 | -10,288,690.65 | -58,302,580.35 | 28,866,874.66 |
38. Reasonable reserve
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
Safety production costs | 2,606.93 | 10,050,468.85 | 8,933,473.96 | 1,119,601.82 |
Total | 2,606.93 | 10,050,468.85 | 8,933,473.96 | 1,119,601.82 |
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, theprovision is based on the actual operation revenue of last period, extract on average month-by-month basisthrough excess regressive methodAmong the above safety production costs, including the safety production costs accrual by the Company in linewith regulations and the parts enjoy by shareholders of the Company in safety production costs accrual bysubsidiary in line with regulations.
39. 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 reserves: Pursuit to the Company Law and Article of Association, theCompany extracted statutory surplus reserve on 10 percent of the net profit. No more amounts shall be withdrawalif the accumulated statutory surplus reserve takes over 50 percent of the registered capital.
40. Retained profit
In RMB
Item | Current period | Last period |
Retained profits at the end of last period before adjustment | 9,811,609,138.92 | 7,845,639,990.88 |
Retained profits at the beginning of the period after adjustment | 9,811,609,138.92 | 7,845,639,990.88 |
Add: The net profits belong to owners of patent company of this period | 1,545,242,704.92 | 2,571,339,490.04 |
Common dividend payable | 1,210,740,700.00 | 605,370,342.00 |
Retained profit at period-end | 10,146,111,143.84 | 9,811,609,138.92 |
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 retainedprofits 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 Yuan4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
41. Operating income and cost
In RMB
Item | Current period | Last period | ||
Income | Cost | Income | Cost | |
Main operating | 4,725,759,054.05 | 3,682,028,566.53 | 4,480,811,897.39 | 3,526,184,596.99 |
Other operating | 235,042,836.94 | 207,561,723.16 | 247,313,701.63 | 210,106,341.87 |
Total | 4,960,801,890.99 | 3,889,590,289.69 | 4,728,125,599.02 | 3,736,290,938.86 |
42. Business tax and surcharges
In RMB
Item | Current period | Last period |
City maintenance and construction tax | 15,131,214.76 | 15,554,573.84 |
Educational surtax | 10,807,786.47 | 11,107,313.56 |
Property tax | 7,130,285.13 | 6,488,252.36 |
Land use tax | 3,243,530.28 | 3,131,115.90 |
Vehicle use tax | 24,297.00 | 18,915.00 |
Stamp duty | 1,578,877.86 | 1,556,803.30 |
Other taxes | 84,360.90 | 5,308.52 |
Total | 38,000,352.40 | 37,862,282.48 |
43. Sales expenses
In RMB
Item | Current period | Last period |
Salary and fringe benefit | 23,852,704.11 | 16,800,347.95 |
Consumption of office materials and business travel charge | 5,767,944.92 | 5,184,310.23 |
Transportation charge | 19,146,343.03 | 17,050,992.80 |
Warehouse charge | 3,241,966.63 | 1,546,815.48 |
Three-guarantee fee | 40,015,843.08 | 20,963,280.32 |
Business entertainment fee | 8,251,206.32 | 6,230,440.89 |
Other | 6,071,551.76 | 3,783,074.99 |
Total | 106,347,559.85 | 71,559,262.66 |
44. Administration expenses
In RMB
Item | Current period | Last period |
Salary and fringe benefit | 94,992,042.41 | 116,204,076.96 |
Depreciation charger and long-term assets amortization | 24,091,878.82 | 23,516,873.88 |
Consumption of office materials and business travel charge | 7,840,515.40 | 10,088,373.09 |
Incentive fund | 64,279,800.00 | 41,805,000.00 |
Other | 222,779,142.15 | 207,954,410.80 |
Total | 413,983,378.78 | 399,568,734.73 |
45. Financial expenses
In RMB
Item | Current period | Last period |
Interest expenses | 9,075,955.05 | 4,482,686.51 |
Note discount interest expenses | 409,282.24 | 402,851.58 |
Saving interest income | -11,684,097.62 | -9,918,625.28 |
Gains/losses from exchange | -491,644.75 | 6,084,256.36 |
Handling charges | 913,596.71 | 636,882.15 |
Total | -1,776,908.37 | 1,688,051.32 |
Other explanation:
The interest expenses for year of 2017 including the 1,135,848.00 Yuan received of regards for the provincialengineering center
46. Asset impairment loss
In RMB
Item | Current period | Last period |
I. Bad debt loss | 2,192,563.70 | 1,918,243.57 |
II. Inventory falling price loss | -2,202,651.08 | -13,214,717.13 |
Total | -10,087.38 | -11,296,473.56 |
47. Investment income
In RMB
Item | Current period | Last period |
Income of long-term equity investment calculated based on equity | 968,640,145.91 | 833,565,520.64 |
Investment income from holding financial assets available for sales | 3,220,575.00 | 235,500.00 |
Investment income obtained from disposal of financial assets available for sales | 17,370,816.75 | 24,625,516.88 |
Entrust financial income | 159,801,630.73 | 97,021,850.83 |
Gains/losses of subsidiary liquidation | -10,472.99 | |
Total | 1,149,033,168.39 | 955,437,915.36 |
48. Income from assets disposal
In RMB
Sources | Current period | Last period |
Income from disposal of non-current assets | 1,820,229.59 | 235,193.85 |
Losses from disposal of non-current assets | -232,044.23 | -360,974.45 |
Total | 1,588,185.36 | -125,780.60 |
49. Other income
In RMB
Source of other income | Current period | Last period |
Government subsidy related with daily operation activities | 14,032,459.71 | 15,608,007.28 |
Total | 14,032,459.71 | 15,608,007.28 |
50. Non-operating income
In RMB
Item | Current period | Last period | Amount reckoned into current non-recurring gains/losses |
Government subsidy | 3,667,570.46 | 1,498,749.45 | 3,667,570.46 |
Other | 213,558.41 | 1,285,830.03 | 213,558.41 |
Total | 3,881,128.87 | 2,784,579.48 | 3,881,128.87 |
Government subsidy reckoned into current gains/losses:
In RMB
Item | Granting subject | Cause of distribution | Nature type | Whether the impact of subsidies on the current profit and loss | Whether special subsidies | Current period | Last period | Assets related/Income related |
Steady post subsidy in Wuxi | No | No | 967,170.46 | 1,402,281.45 | Income related | |||
Social insurance fund for recruiting college graduates by small & medium enterprise in Ningbo City | No | No | 27,468.00 | Income related | ||||
Patent funding | No | No | 621,500.00 | Income related | ||||
Fund of manufacturing of intelligent transformation for common rail pump in Huishan District | No | No | 1,340,000.00 | Income related | ||||
Grants of high-tech enterprise recognized award from Management Committee of Jiangbei District | No | No | 500,000.00 | Income related |
Discount on imported equipment | No | No | 103,000.00 | Income related | ||||
Employment subsidy from Employment management service of Jiangbei District, Ningbo City | No | No | 86,520.00 | Income related | ||||
Special fund for 333 high-end talents training project | No | No | 30,000.00 | Income related | ||||
Other | No | No | 19,380.00 | 69,000.00 | Income related | |||
Total | -- | -- | -- | -- | -- | 3,667,570.46 | 1,498,749.45 | -- |
51. Non-operating expenditure
In RMB
Item | Current period | Last period | Amount reckoned into current non-recurring gains/losses |
Total non-current assets disposal losses | 167,094.34 | 1,175,039.72 | 167,094.34 |
Including: fixed assets disposal losses | 167,094.34 | 1,175,039.72 | 167,094.34 |
Donations | 13,500.00 | ||
Local fund | 2,015,771.73 | 1,957,389.72 | |
Other | 145,006.31 | 618,295.22 | 145,006.31 |
Total | 2,327,872.38 | 3,764,224.66 | 312,100.65 |
52. Income tax expense(1) Statement of income tax expense
In RMB
Item | Current period | Last period |
Payable tax in current period | 102,952,291.92 | 84,212,598.76 |
Adjusted the previous income tax | -603,416.68 | -644,798.91 |
Increase/decrease of deferred income tax assets | 633,939.20 | 10,513,650.01 |
Increase/decrease of deferred income tax liability | -55,516.48 | -55,516.50 |
Total | 102,927,297.96 | 94,025,933.36 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item | Current period |
Total profit | 1,680,874,375.97 |
Income tax measured by statutory/applicable tax rate | 252,131,156.40 |
Impact by different tax rate applied by subsidies | 3,581,538.92 |
Adjusted the previous income tax | -603,416.68 |
Impact by non-taxable revenue | -145,876,642.65 |
Impact by the deductible losses of the un-recognized previous deferred income tax | -4,510,779.88 |
The deductible temporary differences or deductible losses of the un-recognized deferred income tax assets in the Period | 492,355.10 |
Other | -2,286,913.25 |
Income tax expense | 102,927,297.96 |
53. Other comprehensive income
See Note VII. 35 “Other comprehensive income”
54. Items of ash flow statement(1) Other cash received in relation to operation activities
In RMB
Item | Current period | Last period |
Income from bank deposit interest | 12,485,826.79 | 10,505,698.00 |
Government subsidy | 8,212,570.46 | 8,156,049.45 |
Other | 181,546.85 | 1,051,339.77 |
Total | 20,879,944.10 | 19,713,087.22 |
(2) Other cash paid in relation to operation activities
In RMB
Item | Current period | Last period |
Expenses of sales cash paid | 46,539,395.20 | 45,844,220.52 |
Expenses of management cash paid | 100,789,163.46 | 104,847,303.37 |
Other | 6,641,913.18 | 3,396,065.05 |
Total | 153,970,471.84 | 154,087,588.94 |
(3) Cash received from other investment activities
Nil
(4) Cash paid related with investment activities
In RMB
Item | Current period | Last period |
Borrowing of Baodun (Tianjin) Electrical Co., Ltd. are paid | 10,000,000.00 | |
Total | 10,000,000.00 |
(5) Other cash received in relation to financing activities
In RMB
Item | Current period | Last period |
Weifu Leader received the borrowings from Wuxi Industrial Group | 5,470,000.00 | |
Total | 5,470,000.00 |
(6) Cash paid related with financing activities
In RMB
Item | Current period | Last period |
Liquidation charges | 1,049,711.28 | |
National debt paid transfer to loans | 339,091.00 | |
Total | 339,091.00 | 1,049,711.28 |
55. Supplementary information to statement of cash flow(1) Supplementary information to statement of cash flow
In RMB
Supplementary information | This Period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | 1,577,947,078.01 | 1,368,367,366.03 |
Add: Assets impairment provision | -10,087.38 | -11,296,473.56 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 142,796,801.99 | 134,523,929.25 |
Amortization of intangible assets | 8,927,389.15 | 9,475,063.57 |
Amortization of long-term deferred expenses | 1,093,846.42 | 1,281,403.15 |
Loss from disposal of fixed assets, intangible assets and other long-term | -1,588,185.36 | 1,300,820.32 |
assets(gain is listed with “-”) | ||
Losses on scrapping of fixed assets (gain is listed with “-”) | 167,094.34 | |
Financial expenses (gain is listed with “-”) | 8,265,783.22 | 5,167,986.51 |
Investment loss (gain is listed with “-”) | -1,149,683,398.46 | -953,391,921.75 |
Decrease of deferred income tax asset( (increase is listed with “-”) | 633,939.20 | 10,513,650.01 |
Increase of deferred income tax liability (decrease is listed with “-”) | -55,516.48 | -55,516.50 |
Decrease of inventory (increase is listed with “-”) | 241,085,663.64 | 228,492,024.91 |
Decrease of operating receivable accounts (increase is listed with “-”) | -606,831,311.20 | -684,474,762.93 |
Increase of operating payable accounts (decrease is listed with “-”) | 154,832,323.82 | 255,605,734.75 |
Other | 1,342,269.57 | -13,108,062.24 |
Net cash flow arising from operating activities | 378,923,690.48 | 352,401,241.52 |
2. Material investment and financing not involved in cash flow | -- | -- |
3. Net change of cash and cash equivalents: | -- | -- |
Balance of cash at period end | 2,842,510,815.26 | 1,595,210,818.24 |
Less: Balance of cash equivalent at period-begin | 2,948,439,354.22 | 3,795,223,678.11 |
Net increasing of cash and cash equivalents | -105,928,538.96 | -2,200,012,859.87 |
(2) Net cash payment for the acquisition of a subsidiary of the current period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
In RMB
Item | Closing balance | Opening balance |
Ⅰ. Cash | 2,842,510,815.26 | 2,948,439,354.22 |
Including: stock cash | 594,764.72 | 736,773.22 |
Bank deposit available for payment at any time | 2,841,916,050.54 | 2,947,702,581.00 |
Ⅲ. Balance of cash and cash equivalent at period-end | 2,842,510,815.26 | 2,948,439,354.22 |
56. Notes for the statement of owners equity changes
Nil
57. Assets with ownership or use right restricted
In RMB
Item | Book value at period-end | Restriction reason |
Monetary fund | 99,317,091.42 | Cash deposit for bank acceptance |
Notes receivable | 389,454,825.85 | Notes pledge for bank acceptance |
Monetary fund | 881,868.57 | Court freeze |
Financial assets availablefor sale | 166,608,867.78 | In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as “Shenzhen Intermediate People's Court”), the property with the value of 217 million Yuan under the name of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd. was frozen. As of the end of the reporting period, 4.71 million shares of Miracle Logistics and 11,739,102 shares of SDEC held by the Company were frozen. |
Total | 656,262,653.62 | -- |
58. Item of foreign currency(1) Item of foreign currency
In RMB
Item | Closing balance of foreign currency | Rate of conversion | Ending RMB balance converted |
Monetary fund | |||
Including: USD | 15,019,676.83 | 6.6166 | 99,379,193.71 |
EUR | 1,959,035.57 | 7.6515 | 14,989,560.66 |
HKD | 9,178,111.52 | 0.8431 | 7,738,065.82 |
JPY | 9,248,508.00 | 0.059914 | 554,115.12 |
Accounts receivable | |||
Including: USD | 4,805,349.78 | 6.6166 | 31,795,077.36 |
EUR | 968,745.75 | 7.6515 | 7,412,358.10 |
JPY | 11,348,905.00 | 0.059914 | 679,958.29 |
Accounts payable | |||
Including: USD | 673,126.61 | 6.6166 | 4,453,809.52 |
EUR | 1,597,806.15 | 7.6515 | 12,225,613.75 |
CHF | 20,630.15 | 6.6350 | 136,881.05 |
JPY | 94,543,893.00 | 0.059914 | 5,664,502.81 |
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √ Not applicable
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
Nil
2. Enterprise merger under the same control
Nil
3. Reverse purchase
Nil
4. The disposal of subsidiaries
Whether there is a subsidiary disposal on one time, which is loss control of rights
□Yes √No
Whether there is a subsidiary disposal by steps through multiple trading and loss control of rights in the period
□Yes √No
5. Other reasons for consolidation range changed
Explain the reasons on consolidate scope changes (i.e. subsidiary newly established, subsidiary liquidation etc.) and relevantinformation:
In the Year, the wholly-owned subsidiary – Nanchang Weifu Leader Auto Parts Co., Ltd. was establised by
investment from Weifu Leader, the industrial and commerce record was conpleted on 8 March 2018, and therewas no business exercise in the reporting period actually
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary(1) Constitute of enterprise group
Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
Weifu Jinning | Nanjing | Nanjing | Spare parts of internal-combustion engine | 80.00% | Enterprise merger under the same control | |
Weifu Leader | Wuxi | Wuxi | Automobile exhaust purifier, muffler | 94.81% | Enterprise merger under the same control | |
Weifu Mashan | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
Weifu Chang’an | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
Weifu International Trade | Wuxi | Wuxi | Trading | 100.00% | Enterprise merger under the same control | |
Weifu ITM | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Enterprise merger not under the same control | |
Weifu Schmidt | Wuxi | Wuxi | Spare parts of internal-combustion engine | 66.00% | Investment | |
Weifu Tianli | Ningbo | Ningbo | Spare parts of internal-combustion engine | 54.23% | Enterprise merger not under the same control | |
Weifu Autocam | Wuxi | Wuxi | Spare parts of internal-combustion engine | 51.00% | Enterprise merger not under the same control | |
Weifu Leader(Wuhan) | Wuhan | Wuhan | Automobile exhaust purifier, muffler | 60.00% | Investment | |
Weifu Leader (Chongqing) | Chongqing | Chongqing | Automobile exhaust purifier, muffler | 100.00% | Investment | |
Weifu Leader (Nanchang) | Nanchang | Nanchang | Automobile exhaust purifier, muffler | 100.00% | Investment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis of the invested unit control by the Company though holds half or below voting rights; and the invested unit without controls bythe Company but with over half voting rights hold: Nil
Major structured entity included in consolidate statement: Nil
Basis of termination of agent or consigner: Nil
Other note:
In accordance with the resolution of Office Meeting 2017 No.(002), the 6.29% shares of Weifu Tianli held byNingbo Shenhua Energy-Saving and Enviornmental Protection Tech. Co., Ltd. are acquired in the Year, afteracquisition, shares of Weifu Tianli held by the Company increased to 54.23%, and file in industry and commercebureau on 8 May 2018.
(2) Important non-wholly-owned subsidiary
In RMB
Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
Weifu Jinning | 20.00% | 14,039,076.96 | 15,604,600.00 | 166,673,874.88 |
Weifu Schmidt | 34.00% | 103,977.38 | 9,699,940.40 | |
Weifu Leader | 5.19% | 3,712,573.37 | 85,078,510.19 | |
Weifu Tianli | 45.77% | 3,707,146.34 | 100,120,917.35 | |
Weifu Autocam | 49.00% | 11,141,599.05 | 158,494,159.40 | |
Total | 32,704,373.09 | 15,604,600.00 | 520,067,402.22 |
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsidiary | Closing balance | |||||
Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
Weifu Jinning | 844,802,667.29 | 331,265,814.56 | 1,176,068,481.85 | 285,415,594.32 | 55,389,251.34 | 340,804,845.66 |
Weifu Schmidt | 92,971,564.08 | 38,943,805.27 | 131,915,369.35 | 102,971,926.15 | 102,971,926.15 | |
Weifu Leader | 2,491,180,678.70 | 1,045,889,830.01 | 3,537,070,508.71 | 1,881,471,789.42 | 24,300,604.32 | 1,905,772,393.74 |
Weifu Tianli | 329,410,523.92 | 223,968,657.04 | 553,379,180.96 | 283,848,085.10 | 61,052,803.89 | 344,900,888.99 |
Weifu Autocam | 292,491,401.69 | 280,137,032.48 | 572,628,434.17 | 251,950,534.98 | 251,950,534.98 | |
Total | 4,050,856,835.68 | 1,920,205,139.36 | 5,971,061,975.04 | 2,805,657,929.97 | 140,742,659.55 | 2,946,400,589.52 |
Subsidiary | Opening balance | |||||
Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
Weifu Jinning | 804,641,137.00 | 337,158,270.17 | 1,141,799,407.17 | 245,091,101.59 | 54,199,342.64 | 299,290,444.23 |
Weifu Schmidt | 88,975,034.68 | 33,405,432.30 | 122,380,466.98 | 93,741,159.45 | 93,741,159.45 | |
Weifu Leader | 2,392,378,693.81 | 978,224,529.85 | 3,370,603,223.66 | 1,793,072,212.90 | 23,503,280.34 | 1,816,575,493.24 |
Weifu Tianli | 290,628,819.00 | 243,156,899.42 | 533,785,718.42 | 259,270,617.16 | 63,076,581.29 | 322,347,198.45 |
Weifu Autocam | 250,884,987.49 | 216,134,430.81 | 467,019,418.30 | 169,012,066.26 | 169,012,066.26 | |
Total | 3,827,508,671.98 | 1,808,079,562.55 | 5,635,588,234.53 | 2,550,187,157.36 | 150,779,204.27 | 2,700,966,361.63 |
In RMB
Subsidiary | Current period | |||
Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
Weifu Jinning | 345,257,893.56 | 70,230,711.18 | 70,230,711.18 | 34,921,442.31 |
Weifu Schmidt | 90,961,973.06 | 304,135.67 | 304,135.67 | 11,277,941.76 |
Weifu Leader | 1,589,176,188.66 | 76,364,083.43 | 76,364,083.43 | -19,011,866.15 |
Weifu Tianli | 196,673,863.48 | 8,293,196.15 | 8,293,196.15 | -9,491,657.17 |
Weifu Autocam | 234,675,435.40 | 22,670,547.15 | 22,670,547.15 | 3,466,284.14 |
Total | 2,456,745,354.16 | 177,862,673.58 | 177,862,673.58 | 21,162,144.89 |
Subsidiary | Last period | |||
Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
Weifu Jinning | 320,793,577.32 | 75,554,314.01 | 75,554,314.01 | 51,524,867.08 |
Weifu Schmidt | 63,231,942.41 | -523,081.90 | -523,081.90 | -3,177,601.27 |
Weifu Leader | 1,397,383,244.81 | 87,593,822.47 | 87,593,822.47 | 83,180,660.24 |
Weifu Tianli | 160,306,384.47 | 804,668.07 | 804,668.07 | 7,731,426.95 |
Weifu Autocam | 258,060,091.53 | 46,391,372.85 | 46,391,372.85 | 18,287,063.55 |
Total | 2,199,775,240.54 | 209,600,886.31 | 209,600,886.31 | 158,446,533.01 |
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statementrange
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
Nil
3. Equity in joint venture and cooperative enterprise(1) Important joint venture and cooperative enterprise
Name | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and cooperative enterprise | |
Directly | Indirectly | |||||
I. Joint venture | ||||||
Wuxi Weifu Environment Catalyst Co., Ltd. | Wuxi | Wuxi | Catalyst | 49.00% | Equity method | |
II. Cooperative enterprise | ||||||
Bosch Automobile Diesel System Co., Ltd. | Wuxi | Wuxi | Internal combustion engine and attachment | 32.50% | 1.50% | Equity method |
Zhonglian Automobile Electronic Co., Ltd | Shanghai | Shanghai | Internal combustion engine and attachment | 20.00% | Equity method | |
Weifu Precision Machinery Manufacturing Co., Ltd. | Wuxi | Wuxi | Internal combustion engine and attachment | 20.00% | Equity method |
Holding shares ratio different from the voting right ratio: NilHas major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold: Nil
(2) Main financial information of the important joint venture
In RMB
Closing balance /Current period | Opening balance /Last period | |
Weifu Environment | Weifu Environment | |
Current assets | 3,284,020,160.10 | 3,011,258,785.42 |
Including: cash and cash equivalents | 278,457,844.16 | 120,584,888.35 |
Non -current assets | 290,878,020.94 | 284,089,421.89 |
Total assets | 3,574,898,181.04 | 3,295,348,207.31 |
Current liabilities | 2,400,664,228.68 | 2,211,790,474.13 |
Non –current liabilities | 19,672,000.00 | 16,450,000.00 |
Total liabilities | 2,420,336,228.68 | 2,228,240,474.13 |
Shareholders’ equity attributable to parent company | 1,154,561,952.36 | 1,067,107,733.18 |
Share of net assets calculated by shareholding ratio | 565,735,356.67 | 522,882,789.26 |
Book value of equity investment in joint ventures | 565,735,356.67 | 522,882,789.26 |
Operation income | 1,864,398,010.43 | 1,571,581,523.69 |
Financial expense | 47,189,696.29 | 30,728,151.56 |
Income tax expense | 3,251,620.98 | 17,908,910.36 |
Net profit | 92,057,072.82 | 90,618,512.17 |
Total comprehensive income | 92,057,072.82 | 90,618,512.17 |
(3) Main financial information of the important cooperative enterprise
In RMB
Closing balance /Current period | Opening balance /Last period | |||||
Bosch Diesel System | Zhonglian Automobile | Weifu Precision Machinery | Bosch Diesel System | Zhonglian Automobile | Weifu Precision Machinery | |
Current assets | 9,675,155,533.63 | 1,346,012,502.62 | 269,283,814.39 | 8,194,014,833.80 | 688,116,022.56 | 238,511,756.68 |
Non -current assets | 2,449,077,752.32 | 4,519,310,194.86 | 127,131,232.18 | 2,696,164,046.92 | 4,668,848,226.74 | 123,616,959.50 |
Total assets | 12,124,233,285.95 | 5,865,322,697.48 | 396,415,046.57 | 10,890,178,880.72 | 5,356,964,249.30 | 362,128,716.18 |
Current liabilities | 4,894,935,119.46 | 1,212,230,464.04 | 112,123,028.11 | 3,949,654,684.13 | 566,609,302.26 | 112,597,321.52 |
Non –current liabilities | 2,186,640.00 | 2,210,310.00 | ||||
Total liabilities | 4,894,935,119.46 | 1,214,417,104.04 | 112,123,028.11 | 3,949,654,684.13 | 568,819,612.26 | 112,597,321.52 |
Attributable to parent company shareholders’ equity | 7,229,298,166.49 | 4,650,905,593.44 | 284,292,018.46 | 6,940,524,196.59 | 4,788,144,637.04 | 249,531,394.66 |
Share of net assets calculated by shareholding ratio | 2,457,961,376.61 | 930,181,118.68 | 56,858,403.69 | 2,359,778,226.84 | 957,628,927.40 | 49,906,278.93 |
--Goodwill | 267,788,761.35 | 1,407,265.96 | 267,788,761.35 | 1,407,265.96 | ||
--Unrealized profit of internal trading | -18,110,561.77 | -36,495.80 | -18,770,053.91 | -28,335.94 | ||
--Other | -0.28 | -529,034.03 | -0.28 | -529,034.03 | ||
Book value of equity investment | 2,707,639,575.91 | 931,588,384.64 | 56,292,873.86 | 2,608,796,934.00 | 959,036,193.36 | 49,348,908.96 |
in joint ventures | ||||||
Operation income | 8,713,485,959.51 | 12,091,114.45 | 190,093,280.56 | 7,780,712,323.52 | 8,953,773.36 | 120,872,329.06 |
Net profit | 2,076,330,091.90 | 1,059,760,956.40 | 34,760,623.80 | 1,750,186,156.84 | 980,886,111.95 | 17,474,566.01 |
Total comprehensive income | 2,076,330,091.90 | 1,059,760,956.40 | 34,760,623.80 | 1,750,186,156.84 | 980,886,111.95 | 17,474,566.01 |
Dividends received from joint venture in the year | 303,884,540.74 | 318,528,894.62 |
(4) Financial summary for non-important Joint venture and affiliate enterprise
Nil
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates
Nil
(6) Excess loss occurred in joint venture or affiliates
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
6. Other
Nil
X. Risk related with financial instrument
Main financial instrument of the Company including equity investment, loans, account receivable, accountpayable etc., more details of the financial instrument can be found in relevant items of Note VII. Risks concernedwith the above mentioned financial instrument, and the risk management policy takes for lower the risks are asfollow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower theadverse impact on performance of the Company to minimum standards, and maximized the benefit forshareholders and other investors. Base on the risk management targets, the basic tactics of the risk management isto recognized and analyzed the vary risks that the Company counted, established an appropriate risk exposurebaseline and caring risk management, supervise the vary risks timely and reliably in order to control the risk in alimited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainlyincluding credit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the riskmanagement target and policy-making, and takes ultimate responsibility for the target of risk management andpolicy. Risk management department and financial control department manager and monitor those risk exposureto ensuring the risks are control in a limited range.
1. Credit RiskCredit risk refers to the one party fails to perform the obligation of the financial instruments, form the other partycompany mainly face credit risk for financial loss caused by the customer credit risks. In order to prevent the risks,
the Company formulated an evaluation system for the new client’s credit and system to analyze the book credit forregular customer. The evaluation system for the new client’s credit aims at the new clients, the Company will
conduct an background investigation based on the established process, with purpose of determine whether offercredit limit to the client and the amount of the credit and credit terms or not. Whereby, the Company setting acredit limits and credit period for every new client, and such limit is the maximum amount without additionalapproval. The system to analyze the book credit for regular customer refers to after purchase order received byregular customer, the Company will examine the order amount and outstanding balance, if the total over the creditlimit, on the premise of additional approval, sales on account shall be realized, or prepayments for relevantamount shall be required.
Furthermore, as for the sales on account occurred, the Company will guarantee the total credit risks in acontrolling range by analyzed and review the monthly report of the risk attention for account receivables.
The maximum credit risk exposure of the Company is the book amount of such financial assets, till end of 30 June2018; lists of the maximum credit risk exposure of the Company are as:
Item | Amount of merge | Amount of parent company |
Accounts receivable | 2,374,955,337.33 | 1,003,118,142.78 |
Other receivables | 17,839,885.07 | 178,153,549.80 |
2. Market riskMarket risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
fluctuations in the market price changes and produce, mainly includes the IRR, FX risk and other price risk.(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.
IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, inline with the anticipative change orientation, choose floating rate or fixed rate, that is the rate in future period willgoes up prospectively, than choose fixed rate; if the rate in future period will decline prospectively, than choosethe floating rate. In order to minor the bad impact from difference between the expectation and real condition,loans for liquid funds of the Company are choose the short-term period, and agreed the terms of prepayment inparticular.
(2) Foreign exchange (FX) riskFX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainlyrelated with the USD, EUR, SF, JPY and GBP, except for the USD, EUR, SF and JPY carried out for theequipment purchasing of parent company and Autocam, material purchasing from business section of WeifuDiesel System, technical service and trademark usage costs from business section of Weifu Diesel System and theimport and export of Weifu International Trade, other main business of the Company are pricing and settle withRMB (Yuan). In consequence of the foreign financial assets and liabilities takes minor ratio in total assets, theCompany has small FX risk of the financial instrument, considered by management of the Company.
End as 30 June 2018, except for the follow assets or liabilities listed with foreign currency, assets and liabilities ofthe Company are carried with RMB
1. Foreign currency assets of the Company till end of 30 June 2018:
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in assets |
Monetary fund |
Including: USD | 15,019,676.83 | 6.6166 | 99,379,193.71 | 0.45% |
EUR | 1,959,035.57 | 7.6515 | 14,989,560.66 | 0.07% |
JPY | 9,248,508.00 | 0.059914 | 554,115.12 |
HKD | 9,178,111.52 | 0.8431 | 7,738,065.82 | 0.04% |
Accounts receivable | ||||
Including: USD | 4,805,349.78 | 6.6166 | 31,795,077.36 | 0.15% |
EUR | 968,745.75 | 7.6515 | 7,412,358.10 | 0.03% |
JPY | 11,348,905.00 | 0.059914 | 679,958.29 | |
Total ratio in assets | 0.74% |
2. Foreign currency liabilities of the Company till end of 30 June 2018:
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in liabilities |
Accounts payable | ||||
Including: USD | 673,126.61 | 6.6166 | 4,453,809.52 | 0.07% |
EUR | 1,597,806.15 | 7.6515 | 12,225,613.75 | 0.20% |
CHF | 20,630.15 | 6.6350 | 136,881.05 |
JPY | 94,543,893.00 | 0.059914 | 5,664,502.81 | 0.09% |
Total ratio in liabilities | 0.36% |
(3) Other pricing riskClassification of the Company held is the equity investments in financial assets available for sale, and suchinvestment can be measured by fair value on balance sheet date, thus, the Company owns a risk of stock marketchanges.Furthermore, on the premise of deliberated and approved in 5th meeting of 8th session of the Board, the Companyexercise entrust financing with the self-owned idle capital; therefore, the Company has the risks of collecting no
principal due to entrust financial products default. Aims at such risk, the Company formulated a “ManagementMechanism of Capital Financing”, and well-defined the authority approval, investment decision-making,
calculation management and risk controls for the entrust financing in order to guarantee a security funds andprevent investment risk efficiently. In order to lower the adverse impact from unpredictable factors, the Company
choose short-term and medium period for investment and investment product’s term is up to 3 years in principle;
in variety of investment, the Company did not invested for the stocks, derivative products, security investmentfund and the entrust financial products aims at security investment as well as other investment with securitiesconcerned.3. Liquidity riskLiquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by theenterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has richcapital to pay the due debts, therefore, a financial control department is established for collectively controllingsuch risks. On the one hand, the financial control department monitoring the cash balance, the marketablesecurities which can be converted into cash at any time and the rolling forecast on cash flow in future 12 months,ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the otherhand, building a favorable relationship with the banks, rationally design the line of credit, credit products andcredit terms, guarantee a sufficient limit for bank credits in order to satisfy vary short-term financingrequirements.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item | Ending fair value | |||
First-order | Second-order | Third-order | Total | |
I. Sustaining measured by fair value | -- | -- | -- | -- |
(2) Equity instrument investment | 178,332,264.00 | 178,332,264.00 | ||
Total assets sustaining measured by fair value | 178,332,264.00 | 178,332,264.00 | ||
II. Non-persistent measure | -- | -- | -- | -- |
XII. Related party and related transactions
1. Parent company of the enterprise
Parent company | Registration place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Wuxi Industry Group | Wuxi | Operation of state-owned assets | 3,720,671,000 Yuan | 20.22% | 20.22% |
Explanation on parent company of the enterprise
Wuxi Industry Development Group Co., Ltd was solely state-owned enterprise funded and established by Wuxi Municipal People’s
Government which mainly took responsibility of authorizing the state-owned assets operation within a certain areas, investmentmanagement of significant project, investment and development of manufacturing and services and venture capital in high-techachievementUltimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality ofJiangsu Province.
2. Subsidiary of the Enterprise
Found more in Note IX. 1.” Equity in subsidiary”
3. Cooperative enterprise and joint venture
Found more in Note IX.3. “Equity in joint venture and cooperative enterprise”
Other cooperative enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: Nil
4. Other related party
Other related party | Relationship with the Enterprise |
ROBERT BOSCH GMBH | The second largest shareholder of the Company |
Key executive | Director, supervisor and senior executive of the Company |
5. Related transaction(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party | Content | Current period | Approved transaction limit | Whether more than the transaction limit | Last period |
Weifu Precision Machinery | Goods and labor | 22,934,380.54 | 50,000,000.00 | No | 20,428,172.03 |
Bosch Diesel System | Goods and labor | 29,375,329.74 | 70,000,000.00 | No | 101,905,922.60 |
Weifu Environment | Goods | 946,283,103.47 | 1,925,000,000.00 | No | 683,351,475.87 |
ROBERT BOSCH GMBH | Goods | 62,350,113.72 | 143,000,000.00 | No | 77,035,723.88 |
Goods sold/labor service providing
In RMB
Related party | Content | Current period | Last period |
Weifu Precision Machinery | Goods and labor | 2,772,785.47 | 1,816,410.96 |
Bosch Diesel System | Goods and labor | 1,600,013,496.75 | 1,684,350,434.59 |
Weifu Environment | Goods and labor | 28,741,766.37 | 37,016,920.13 |
ROBERT BOSCH GMBH | Goods and labor | 319,461,744.57 | 1,583,518.80 |
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB
Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Weifu Environment | Workshop | 1,254,028.50 | 1,194,313.00 |
As a tenant: NilExplanation on related lease
Weifu Leader entered into the house leasing contract with Weifu Environment, as for the plant locates at No.9Linjiang Road, Wuxi new district, owed by Weifu Leader, rent-out to Weifu Environment, agreements are madeas: Rental from 1 January 2017 to 31 December 2017 was 2,388,626.00 Yuan
(4) Related guarantee
Nil
(5) Related party’s borrowed funds
Nil
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
Item | Current period | Last period |
Remuneration of key manager | 2,400,000.00 | 2,310,000.00 |
(8) Other related transactions
Item | Related party | Current period | Last period |
Fixed assets purchased | Bosch Diesel System | 42,735.04 | |
Technology royalties paid etc. | ROBERT BOSCH GMBH | 2,805,114.55 | 2,468,484.66 |
6. Receivable/payable items of related parties(1) Receivable item
In RMB
Item | Related party | Closing balance | Opening balance | ||
Book balance | Bad debt reserves | Book balance | Bad debt reserves | ||
Account receivable | Weifu Precision Machinery | 34,405.50 | 425,363.64 | ||
Account receivable | Bosch Diesel System | 611,995,184.24 | 615,770,490.57 | 72,188.07 | |
Account receivable | ROBERT BOSCH GMBH | 96,482,607.56 | |||
Account receivable | Weifu Environment | 6,050,093.98 | 710,200.00 | ||
Other non-current assets | Bosch Diesel System | 877,500.00 |
(2) Payable item
In RMB
Item | Related party | Ending book balance | Opening book balance |
Account payables | Weifu Precision Machinery | 13,680,801.84 | 9,737,530.74 |
Account payables | Weifu Environment | 723,117,682.74 | 379,374,827.01 |
Account payables | Bosch Diesel System | 14,183,956.17 | 44,262,749.15 |
Account payables | ROBERT BOSCH GMBH | 1,987,967.11 | 38,202,192.76 |
Account received in advance | ROBERT BOSCH GMBH | 579,650.36 | |
Account received in advance | Weifu Environment | 5,850,143.44 | 6,514,951.87 |
Other accounts payable | Industry Group | 5,470,000.00 |
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency(1) Contingency on balance sheet dateGuarantees to subsidiary
Guarantee provided | Guarantee received | Debit bank | Guarantee amount (in 10 thousand Yuan) | Starting from | Terminated dated | Whether guarantee implemented or not |
Weifu High-Technology Group Co., Ltd. | Weifu Tianli | Jiangbei branch of Bank of China in Ningbo | 5,000.00 | 2016-11-15 | 2021-11-10 | N |
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
In RMB
Profit or dividend plans to distributed | 1,210,740,700.00 |
Profit or dividend declare to distributed which have been approved | 1,210,740,700.00 |
3. Sales return
Nil
4. Other events after balance sheet dateNil
XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
4. Pension plan
The “Enterprise Annuity Plan under the name of WFHT” has deliberated and approved by 8th meeting of 7th
session of the Board: in order to mobilize the initiative and creativity of the employees, established a talentlong-term incentive mechanism, enhance the cohesive force and competitiveness in enterprise, the Companycarried out the above mentioned annuity plan since the date of reply of plans reporting received from laborsecurity administration department. Annuity plans are: the annuity fund are paid by the enterprise and employeestogether; the amount paid by enterprise shall not over the 1/12 of the total salary of last years, amount paid by
individual and enterprise shall not over the 1/6 of the total salary of last year, in accordance with the State’s
annuity policy, the Company will adjusted the economic benefits in due time, in principle of responding to theeconomic strength of the enterprise, the amount paid by the enterprise at current period control in the 8.33 percentof the total salary of last year, specific paying ratio later shall be adjust correspondingly in line with the operationcondition of the Company.
In December 2012, the Company received the “Reply on annuity plans reporting under the name of WFHT” fromlabor security administration department, later, the Company entered into the “Entrusted Management Contract ofthe Annuity Plan of WFHT” with PICC.
5. Discontinued operations
Nil
6. Segment(1) Recognition basis and accounting policy for reportable segmentDetermine the operating segments in line with the internal organization structure, management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have beensatisfied at the same time:
①the component is able to generate revenues and expenses in routine activities;②management of the Company is able to assess the operation results regularly, and determine resources
allocation and performance evaluation for the component;
③being analyzed, financial status, operation results and cash flow of the components are able to required by the
CompanyThe Company mainly engaged in the manufacture of fuel system of internal combustion engine products, autoparts, muffler and purifier etc., based on the product segment, the Company determine three reporting segment asauto fuel injection system, air intake system and car after-treatment system. Accounting policy for the threereporting segments are shares the same policy state in Note IIISegment assets exclude financial assets through profit or loss at fair value, derivative instruments, dividendsreceivables, interest receivables, financial management products due within one year, financial assets available forsale, long term equity investment and other undistributed assets, since these assets are not related to productsoperation.
(2) Financial information for reportable segment
In RMB
Item | Product segment of automotive fuel injection system | Product segment of automotive air intake system | Product segment of automotive post-processing system | Add: investment/income measured by equity, income of financial products or possession and disposal income, the retained assets or gains/losses as the financial assets available for sale or possession and disposal income | Offset of segment | Total |
Operating revenue | 3,102,531,936.37 | 1,702,505,894.52 | 276,835,296.54 | 121,071,236.44 | 4,960,801,890.99 | |
Operating cost | 2,267,395,464.33 | 1,540,041,366.60 | 203,224,695.20 | 121,071,236.44 | 3,889,590,289.69 | |
Total profit | 470,140,658.42 | 40,905,079.54 | 20,795,469.62 | 1,149,033,168.39 | 1,680,874,375.97 | |
Net profit | 401,324,005.53 | 34,550,600.44 | 19,615,170.77 | 1,122,457,301.27 | 1,577,947,078.01 | |
Total assets | 9,112,788,174.84 | 2,954,472,168.12 | 797,969,043.92 | 9,278,108,867.85 | 222,549,411.87 | 21,920,788,842.86 |
Total liabilities | 4,095,612,976.11 | 1,913,172,789.96 | 480,969,210.37 | 5,094,154.34 | 205,293,181.88 | 6,289,555,948.90 |
(3) If there are no segment in the Company, or the total assets and liabilities of the segment are un-able todisclosed, explain the reasons
Not applicable(4) Other notes
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. OtherNil
XVII. Principle notes of financial statements of parent company
1. Accounts receivable(1) Category
In RMB
Types | Closing balance | Opening balance | ||||||||
Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Receivables with bad debt provision accrual by credit portfolio | 1,006,269,116.34 | 100.00% | 3,150,973.56 | 0.31% | 1,003,118,142.78 | 1,049,489,925.33 | 100.00% | 2,477,035.41 | 0.24% | 1,047,012,889.92 |
Total | 1,006,26 | 100.00% | 3,150,97 | 0.31% | 1,003,118 | 1,049,4 | 100.00% | 2,477,035 | 0.24% | 1,047,012,8 |
9,116.34 | 3.56 | ,142.78 | 89,925.33 | .41 | 89.92 |
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:
√ Applicable □ Not applicable
In RMB
Age | Closing balance | ||
Account receivable | Bad debt reserves | Accrual ratio | |
Subitem of within one year | |||
Within 6 months | 787,013,605.57 | ||
6 months to one year | 10,781,166.25 | 1,078,116.64 | 10.00% |
Subtotal within one year | 797,794,771.82 | 1,078,116.64 | |
1-2 years | 943,376.16 | 188,701.22 | 20.00% |
2-3 years | 1,091,364.56 | 436,545.82 | 40.00% |
Over 3 years | 1,447,609.88 | 1,447,609.88 | 100.00% |
Total | 801,277,122.42 | 3,150,973.56 | 0.39% |
Explanations on combination determine:
Except for the receivables with impairment reserves accrual singly; base on the actual loss ratio of the receivablesof previous years, with same or similar credit portfolio, and combining actual condition accrual bad debt reservesto determined the accrual ratio for bad debt reserves
In combination, withdrawal bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal bad debt provision based on other methods for account receivable:
Combination of related party
Related party | Amount | Proportion of the bad debt provision withdrawal (%) |
Weifu Leader | 37,319,951.85 | -- |
Weifu ITM | 56,016,233.09 | -- |
Weifu Autocam | 8,405,583.57 | -- |
Weifu International Trade | 98,113,836.09 | -- |
Weifu Tianli | 1,441,969.98 | -- |
Weifu Schmidt | 3,694,419.34 | -- |
Total | 204,991,993.92 | -- |
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 678,845.55 Yuan; collected or reversed 0.00 Yuan.Including major amount collected or reversed in the period: Nil
(3) Receivables actually written-off during the reporting period
In RMB
Item | Written-off amount |
Other small companies | 4,907.40 |
Important receivables written-off: nilExplanation: the account was not occurred from related transaction
(4) Top 5 receivables at ending balance by arrears partyTotal receivables collected by arrears party for the Period amounting to 852,601,230.38 Yuan, takes 84.73 percent
in closing balance of the account receivables; 118,908.79 Yuan are accrual correspondingly for bad debt reserves.(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other accounts receivable(1) Classification
In RMB
Type | Closing balance | Opening balance | ||||||||
Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Other receivable with single significant amount and withdrawal bad debt provision separately | 178,164,006.82 | 100.00% | 10,457.02 | 0.01% | 178,153,549.80 | 50,395,333.34 | 100.00% | 220,680.18 | 0.44% | 50,174,653.16 |
Total | 178,164,006.82 | 100.00% | 10,457.02 | 0.01% | 178,153,549.80 | 50,395,333.34 | 100.00% | 220,680.18 | 0.44% | 50,174,653.16 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Age | Closing balance | ||
Other receivable | Bad debt reserves | Accrual ratio | |
Subitem of within one year | |||
Within 6 months | 12,270,196.99 | ||
6 months to one year | 104,570.21 | 10,457.02 | 10.00% |
1-2 years | 12,374,767.20 | 10,457.02 | |
Total | 12,374,767.20 | 10,457.02 | 0.08% |
Explanations on combination determine:
Except for the other receivables with impairment reserves accrual singly; base on the actual loss ratio of thereceivables of previous years, with same or similar credit portfolio, and combining actual condition accrual baddebt reserves to determined the accrual ratio for bad debt reserves
In combination, withdrawal bad debt provision based on balance proportion for other account receivable
□ Applicable √ Not applicable
In combination, withdrawal bad debt provision based on other methods for other account receivable
√Applicable□ Not applicable
Combination of related party
Related party | Amount | Proportion of the bad debt provision withdrawal |
Weifu Chang’an | 20,000,000.00 | |
Weifu Mashan | 21,789,239.62 |
Weifu Leader | 100,000,000.00 | |
Weifu Schmidt | 24,000,000.00 |
Total | 165,789,239.62 |
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 8,405.53 Yuan; collected or reversed 218,628.69 Yuan.Including major amount collected or reversed in the period: nil
(3) Other receivables actually written-off during the reporting period: Nil(4) Other receivables by nature
In RMB
Nature | Ending book balance | Opening book balance |
Staff loans and petty cash | 2,193,166.13 | 1,438,626.00 |
Balance of related party within the scope of the merger | 165,789,239.62 | 47,000,000.00 |
Current money with the enterprises | 10,174,401.07 | 1,949,507.34 |
Other | 7,200.00 | 7,200.00 |
Total | 178,164,006.82 | 50,395,333.34 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Company | Nature | Ending balance | Book age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
Weifu Leader | Current money with the subsidiary | 100,000,000.00 | Within one year | 56.13% | |
Weifu Schmidt | Current money with the subsidiary | 24,000,000.00 | Within one year | 13.47% | |
Weifu Mashan | Current money with the subsidiary | 21,789,239.62 | Within one year | 12.23% | |
Weifu Chang’an | Current money with the subsidiary | 20,000,000.00 | Within one year | 11.23% | |
Baodun (Tianjin) Electrical Co., Ltd. | Current money with the enterprises | 10,000,000.00 | Within one year | 5.61% | |
Total | -- | 175,789,239.62 | -- | 98.67% |
(6) Account receivable with government grand involved
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liabilities resulted by other account receivable transfer and continues involvement
Nil
3. Long-term equity investment
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
Investment for subsidiary | 1,466,611,689.17 | 1,466,611,689.17 | 1,451,041,689.17 | 1,451,041,689.17 | ||
Investment for associates and joint venture | 3,585,913,387.21 | 3,585,913,387.21 | 3,511,481,000.32 | 3,511,481,000.32 | ||
Total | 5,052,525,076.38 | 5,052,525,076.38 | 4,962,522,689.49 | 4,962,522,689.49 |
(1) Investment for subsidiary
In RMB
The invested entity | Opening balance | Increased | Decreased | Ending balance | Impairment accrual | Ending balance of impairment provision |
Weifu Jinning | 178,639,593.52 | 178,639,593.52 | ||||
Weifu Leader | 460,113,855.00 | 460,113,855.00 | ||||
Weifu Mashan | 168,693,380.51 | 168,693,380.51 | ||||
Weifu Chang’an | 220,902,037.30 | 220,902,037.30 | ||||
Weifu International Trade | 32,849,254.85 | 32,849,254.85 | ||||
Weifu ITM | 167,000,000.00 | 167,000,000.00 | ||||
Weifu Schmidt | 50,160,000.00 | 50,160,000.00 | ||||
Weifu Tianli | 90,229,100.00 | 15,570,000.00 | 105,799,100.00 | |||
Weifu Autocam | 82,454,467.99 | 82,454,467.99 | ||||
Total | 1,451,041,689.17 | 15,570,000.00 | 1,466,611,689.17 |
(2) Investment for associates and joint venture
In RMB
Company | Opening balance | +,- | Ending balance | Ending balance of impairment provision | |||||||
Additional investment | Capital reduction | Investment gains/losses recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
I. Joint venture |
II. Associated enterprise | |||||||||||
Bosch Diesel System | 2,503,154,814.59 | 675,879,164.22 | 580,955,739.65 | 2,598,078,239.16 | |||||||
Zhonglian Automobile Electronic Co., Ltd | 959,036,193.36 | 211,952,191.28 | 239,400,000.00 | 931,588,384.64 | |||||||
Weifu Precision Machinery | 49,289,992.37 | 6,956,771.04 | 56,246,763.41 | ||||||||
Subtotal | 3,511,481,000.32 | 894,788,126.54 | 820,355,739.65 | 3,585,913,387.21 | |||||||
Total | 3,511,481,000.32 | 894,788,126.54 | 820,355,739.65 | 3,585,913,387.21 |
(3) Other explanationIn accordance with the resolution of Office Meeting 2017 No.(002), the 6.29% shares of Weifu Tianli held by
Ningbo Shenhua Energy-Saving and Enviornmental Protection Tech. Co., Ltd. are acquired in the Year, afteracquisition, shares of Weifu Tianli held by the Company increased to 54.23%, and file in industry and commercebureau on 8 May 2018.
4. Operating income and cost
In RMB
Item | Current period | Last period | ||
Income | Cost | Income | Cost | |
Main business | 2,136,258,034.82 | 1,533,313,082.59 | 1,473,896,379.07 | 1,129,630,086.97 |
Other business | 178,884,620.31 | 165,203,440.31 | 152,584,036.64 | 138,992,574.61 |
Total | 2,315,142,655.13 | 1,698,516,522.90 | 1,626,480,415.71 | 1,268,622,661.58 |
5. Investment gains
In RMB
Item | Current period | Last period |
Income of long-term equity investment calculated based on cost | 62,418,400.00 | 949,835,680.00 |
Income of long-term equity investment calculated based on equity | 894,788,126.54 | 767,309,765.64 |
Investment income from period of holding the financial assets available for sale | 3,220,575.00 | 235,500.00 |
Investment income obtained from disposal of financial assets available for sale | 17,370,816.75 | 24,625,516.88 |
Entrust financial income | 159,552,310.73 | 97,021,850.83 |
Gains/losses of equity liquidation | -8,261,290.60 | |
Total | 1,137,350,229.02 | 1,830,767,022.75 |
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset | 1,421,091.02 | |
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 17,700,030.17 | |
Profit and loss of assets delegation on others’ investment or management | 159,801,630.73 | |
Held transaction financial asset, gains/losses of changes of fair values from transaction financial liabilities, and investment gains from disposal of transaction financial asset, transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company | 17,370,816.75 | |
Switch-back of impairment of account receivable that practice impairment test independent | 512,580.00 | |
Other non-operating income and expenditure except for the aforementioned items | 73,701.23 | |
Less: Impact on income tax | 29,876,415.88 | |
Impact on minority shareholders’ equity | 626,230.67 | |
Total | 166,377,203.35 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. REO and earnings per share
Profits during report period | Weighted average ROE | Earnings per share | |
Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | 9.92% | 1.53 | 1.53 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 8.85% | 1.37 | 1.37 |
3. Difference of the accounting data under accounting rules in and out of China(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
Not applicable
4. Other
Nil
Section XI. Documents available for reference
I. Financial statement carrying the signatures and seals of person in charge of the company, principal of theaccounting works and person in charge of accounting organ (accounting Supervisor);II. Original documents of the Company and manuscripts of public notices that disclosed in the website Juchao(http://www.cninfo.com.cn) designated by CSRC in the report period;III. Semi-Annual report published on China Securities Journal, Securities Times and Hong Kong CommercialDaily during the Period.
Board of Directors ofWeifu High-Technology Group Co., Ltd.
Chairman:
Chen Xuejun
28 August 2018