Stock Code: 000581, 200581 Public Notice No: 2020-041Short Form of the Stock: WFHT, Su Weifu-B
Weifu High-Technology Group Co., Ltd.
Summary of Semi-Annual Report 2020I. Important NoticeThe summary is abstract from full-text of semi-annual report, for more details of operating results, financial condition and futuredevelopment plan of the Company; investors should found in the full-text that published on media appointed by CSRC.Whole directors of the Company attend the Board Meeting for report deliberation.Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
□ Applicable √ Not applicable
There is no plan of cash bonus, dividend distribution and capitalizing of common reserves carried out by the CompanyProfit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Company profile
1. Company Profile
| Short form of the stock | WFHT, Su Weifu-B | Stock code | 000581, 200581 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | |
| Name | Zhou Weixing | Yan Guohong | |
| Office add. | No.5, Huashan Road, Xinwu District, Wuxi City | No.5, Huashan Road, Xinwu District, Wuxi City | |
| Tel. | 0510-80505999 | 0510-80505999 | |
| wfjt@public1.wx.js.cn | wfjt@public1.wx.js.cn | ||
2. Main financial data and indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
| Current period | Same period of last year | Changes over last year | |
| Operating income (RMB) | 6,594,403,624.56 | 4,403,444,346.05 | 49.76% |
| Net profit attributable to shareholders of the listed company (RMB) | 1,326,344,424.98 | 1,256,661,577.09 | 5.55% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 1,175,574,728.86 | 1,114,094,824.74 | 5.52% |
| Net cash flow arising from operating activities (RMB) | 437,657,072.41 | 690,323,908.25 | -36.60% |
| Basic earnings per share (RMB/Share) | 1.32 | 1.25 | 5.60% |
| Diluted earnings per share (RMB/Share) | 1.32 | 1.25 | 5.60% |
| Weighted average ROE | 7.80% | 7.60% | 0.20% |
| Current period-end | period-end of last year | Changes over end of last year | |
| Total assets (RMB) | 24,755,340,246.43 | 23,958,348,185.78 | 3.33% |
| Net assets attributable to shareholder of listed company (RMB) | 16,922,892,215.78 | 16,990,405,136.62 | -0.40% |
3. Number of shares and share-holding
In Share
| Total common stock shareholders in reporting period-end | 59,709 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||
| Top ten shareholders | |||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Number of shares pledged/frozen | ||
| State of share | Amount | ||||||
| Wuxi Industry Development Group Co., Ltd. | State-owned corporate | 20.22% | 204,059,398 | ||||
| ROBERT BOSCH GMBH | Foreign corporate | 14.16% | 142,841,400 | ||||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | Foreign corporate | 5.60% | 56,509,620 | ||||
| BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign corporate | 1.84% | 18,530,315 | ||||
| Central Huijin Assets Management Co., Ltd. | State-owned corporate | 1.27% | 12,811,200 | ||||
| Monetary Authority of Macao - own fund | Foreign corporate | 0.88% | 8,923,416 | ||||
| Basic Pension Insurance Fund- 1003 | Other | 0.83% | 8,420,995 | ||||
| FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | Foreign corporate | 0.77% | 7,725,486 | ||||
| NSSF - 413 | Other | 0.62% | 6,300,027 | ||||
| NSSF - 103 | Other | 0.59% | 5,999,932 | ||||
| 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. | ||||||
| Shareholders involving margin business (if applicable) | Not applicable | ||||||
4. Changes of controlling shareholders or actual controller
Controlling shareholder changed in the Period
□ Applicable √ Not applicable
Controlling shareholders had no change in reporting period.Actual controller changed in the Period
□ Applicable √ Not applicable
Actual controller had no change in reporting period.
5. Total preferred shareholders and top 10 shares held by preferred shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders
6. 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 due:
NoIII. Discussion and analysis of operation
1. Operation status in the period
(i) Overall situationThis year, affected by the novel coronavirus pneumonia epidemic, the company and the industry are facing hugechallenges. At the beginning of the epidemic, the government issued a series of policies to control the spread ofthe epidemic, which forced companies to suspend work and production, and the poor social logistics systemseriously affected the supply of raw materials and components and the products sales of the company. In responseto the above-mentioned difficulties and challenges, the company has taken corresponding measures to respondactively,when the local epidemic was initially controlled, it speeded up the resumption of work and production,and ensured to neglect neither prevention and control of the epidemic nor production and operation.From theformal resumption of work on February 10 to the end of February, the company's resumption rate reached 80%,which basically met the needs of production. After the epidemic was basically controlled, the state issued a seriesof policies to stimulate economic recovery, which strongly promoted the recovery of the industry. In the face ofpositive policy signals, the company seized the opportunity to quickly organize the purchase of imported rawmaterials and important parts required by the company, ensuring the company’s production and operation needs inthe second quarter and enabling the company to effectively resist the negative impact of the epidemic. Comparedwith the same period last year, the company's various economic indicators maintained good growth. During thereporting period, the company achieved operating income of 6.594 billion yuan, an increase of 49.76% over thesame period last year; realized profits of 1.404 billion yuan, an increase of 3.49% over the same period last year;
realized net profit attributable to owners of the parent company of 1.326 billion yuan, an increase of 5.55%overthe same period last year.(ii) Main work carried out in the first half of the year
1. Actively responded to challenges, seized market opportunities, and ensured sales growth. The epidemic at thebeginning of the year brought severe challenges to the industry and the company. The company adjusted itsresponse strategies in a timely manner, actively promoted the implementation progress of key projects in keycustomers, increased the market shares of the three major business segments, and ensured the sales growth of thethree major business products, and realized significant growth in operating income for the first half of the year.
2. Intensified technological research and development and promoted the development of new products. Gasolinesupercharger products have gradually realized mass production in major customer projects; exhaust gasafter-treatment system products have completed the encapsulation development of CN-VI GPF catalyst productsfor core customers on passenger cars, and achieved mass supply, and the development of WSP2.0 encapsulationplatform have been in progress on commercial vehicles, all phases of tests were completed on schedule; the design,trial production and testing of functional samples of core components for new energy products were completed ,and we mastered the basic research and development capabilities.
3. Consolidated lean production and built an information-based manufacturing system. Actively improved theconstruction and in-depth application of Weifu's intelligent manufacturing platform, and promoted the large-scaleapplication of cloud computing and 5G. Currently, uploading the application to the cloud is in the implementationprocess. The construction plan design of 5G factory has been completed, the construction of Aris processmanagement platform has been completed, and the unified process modeling has been established, integratingvarious management elements to form an integrated and visual process management model.
4. Improved cost control capabilities, standardized and unified cost center setting rules, and clarified costresponsibility subjects and authorization approval mechanisms. Built an asset management system, optimizedasset quality, optimized financial structure, reduced working capital, optimized credit management system,combined credit and customer ratings, and controlled bad debts from the source; deepened the construction ofPSSC sharing platform: the optimization plans for all special subjects of indirect material business PSSC systemwere completed, the first phase of the company’s full coverage of the direct material business PSSC system hasbeen completed and launched. Reorganized the entire procurement process, and initially established a process mapof the entire procurement process. Established the bottom line of strict compliance, integrated risk managementinto process construction, and gradually realized the risk management concept of integrating risk controlcompliance elements into the process system by identifying key risk control points in the process and integratingthe management process and management risk.
5. Improved the strategic planning system and actively deployed new businesses. Focusing on the company'sstrategic planning system, implemented strategic planning management functions, established strategic planningand investment specialized committees, strategic planning work organizations and expert database organizations,basically established the company's medium and long-term strategic development master plan, and decomposed,implemented, tracked and evaluated the strategic planning. Promoted the implementation of new business plans,initially formulated product plans for hydrogen fuel cells, conducted market research on key customers, and
promoted IRD capacity planning.
2. Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the accounting period of last year
√Applicable □Not applicable
In accordance with the relevant requirements of the Accounting Standards for Business Enterprises No.14-Revenue (CK [2017] No. 22) issued by the Ministry of Finance on July 5, 2017, the company madecorresponding changes and adjustments to the new revenue standards. The details are as follows:
1. Incorporate the current revenue and construction contract standards into a unified revenue recognition model;
2. Use the transfer of control rights instead of the transfer of risk rewards as the criterion for determining the pointin time of revenue recognition;
3. Identify each individual performance obligation contained in the contract and recognize revenue separatelywhen performing it;
4. Provide clearer guidance for the accounting treatment of contracts that include multiple transactionarrangements;
5. Regulations are explicitly stipulated for the revenue recognition and measurement of certain specifictransactions (or events).
(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period
□ Applicable √ Not applicable
The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.
(3) Particulars about the change of consolidation range compared with the accounting period of last year
□ Applicable √ Not applicable
No changes in the scope of the consolidated statements during the reporting period.
Board of Directors ofWeifu High-Technology Group Co., Ltd.
25 August 2020