WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
SEMI-ANNUAL REPORT 2024
August 2024
Section I. Important Notice, Contents and InterpretationBoard of Directors, Board of Supervisory, all directors, supervisors and senior executives of WeifuHigh-Technology Group Co., Ltd. (hereinafter referred to as the Company) hereby confirm thatthere are no any fictitious statements, misleading statements, or important omissions carried in thisreport, and shall take all responsibilities, individual and/or joint, for the reality, accuracy andcompletion of the whole contents.Yin Zhenyuan, Principal of the Company, and Feng Zhiming, person in charger of accountingworks, and Wu Junfei, person in charge of accounting organ (accounting principal) hereby confirmthat the Financial Report of Semi-Annual Report 2024 is authentic, accurate and complete.All directors have attended the BoD Meeting for the Report deliberation.The forward-looking statements with future plans involved in the Report do not constitute asubstantial commitment for investors. Investors and related parties should maintain sufficient riskawareness and investors are advised to exercise caution of investment risks.Possible risks and countermeasures for the future operation of the Company are described in the“Discussion and Analysis of the Management” in the Report and investors are advised to checkthem out.The profit distribution plan that was deliberated and approved by the Board Meeting is: based ontotal share capital of 971,986,293, distributed 2.20 yuan (tax included) bonus in cash for every 10-share held by all shareholders, 0 share bonus issued (tax included) and no transfer of capital reserveinto share capital. When the profit distribution plan is implemented, if there is a change in the totalamount of shares entitled to profit distribution, on the basis of the total amount of shares entitled toprofit distribution on the equity registration date at the time of implementation of the distributionplan, the distribution amount shall be adjusted according to the principle of unchanged distributionproportion.
The Report is prepared in Chinese and English respectively. In the event of any discrepancybetween the two versions, the Chinese version shall prevail.
Content
Section I. Important Notice, Contents and Interpretation .................................................................................. 2
Section II. Company Profile and Main Financial Indexes .................................................................................. 6
Section III. Discussion and Analysis of the Management .................................................................................... 9
Section IV. Corporate Governance ........................................................................................................................ 22
Section V. Environmental and Social Responsibility ........................................................................................... 25
Section VI. Important Matters .............................................................................................................................. 31
Section VII. Changes in Shares and Particulars about Shareholders ................................................................ 40
Section VIII. Preferred Stock ................................................................................................................................ 46
Section IX. Corporate Bonds ................................................................................................................................. 47
Section X. Financial Report ................................................................................................................................... 48
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 designatedby CSRC during the reporting period;III. The Semi-Annual report summary is published on China Securities Journal and Securities Times during thereporting period.IV. Place for preparation: Office of the BoD of the Company
Interpretation
| Items | Refers to | Contents |
| Company, The Company, WFHT | Refers to | WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. |
| Weifu Group | Refers to | Wuxi Weifu Group Co., Ltd. |
| Wuxi Industry Group | Refers to | Wuxi Industry Development Group Co., Ltd. |
| Bosch | Refers to | Robert Bosch Co., Ltd, ROBERT BOSCH GMBH |
| RBCD | Refers to | Robert Bosch Powertrain Ltd. |
| WFLD | Refers to | Wuxi Weifu Lida Catalytic Converter Co., Ltd. |
| WFJN | Refers to | Nanjing Weifu Jinning Co., Ltd. |
| WFTT | Refers to | Ningbo Weifu Tianli Turbocharging Technology Co., Ltd. |
| WFCA | Refers to | Wuxi Weifu CHANG?AN Co., Ltd. |
| WFMA | Refers to | Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd. |
| WFTR | Refers to | Wuxi Weifu International Tarde Co., Ltd. |
| WFSC | Refers to | Wuxi Weifu Schmitter Powertrain Components Co., Ltd. |
| WFAM | Refers to | Wuxi Weifu Autocam Precision Machinery Co., Ltd. |
| WFDT | Refers to | Wuxi Weifu E-DRIVE Technologies Co., Ltd. |
| WFAS | Refers to | Wuxi Weifu Autosmart Seating System Co., Ltd. |
| WFLH | Refers to | Weifu Lianhua Automotive Parts（Fuzhou）Co., Ltd |
| SPV | Refers to | Weifu Holding ApS |
| IRD | Refers to | IRD Fuel Cells A/S |
| Borit | Refers to | Borit NV |
| WFQL | Refers to | Wuxi Weifu Qinglong Power Technology Co., Ltd. |
| VHIO | Refers to | VHIT S.p.A. Società Unipersonale |
| VHWX | Refers to | VHIT Automotive Systems(Wuxi) Co.Ltd |
| WFSS | Refers to | Weifu Zhigan(Wuxi) Technology Co., Ltd |
| Lezhuo Bowei | Refers to | Lezhuo Bowei Hydraulic Technology (Shanghai) Co., Ltd |
| WFEC | Refers to | Wuxi WFEC Catalysts. Co., Ltd. |
| WFPM | Refers to | Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. |
| Zhonglian Electronics | Refers to | Zhonglian Automobile Electronics Co., Ltd. |
| Autolink | Refers to | Wuxi Chelian Tianxia Information Technology Co., Ltd. |
| Changchun Xuyang | Refers to | Changchun Xuyang Weifu Automobile components Technology Co., Ltd. |
| Guokai Metal | Refers to | Wuxi Guokai Metal Resources Co., Ltd. |
| CSRC | Refers to | China Securities Regulatory Commission |
| SZSE | Refers to | Shenzhen Stock Exchange |
| The reporting period | Refers to | From January 1, 2024 to June 30, 2024 |
Section II. Company Profile and Main Financial Indexes
I. Company information
| Short form of the stock | WFHT, Su Weifu-B | Stock code | 000581,200581 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 无锡威孚高科技集团股份有限公司 | ||
| Short form of the Company (in Chinese) | 威孚高科 | ||
| Foreign name of the Company (if applicable) | WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD. | ||
| Short form of foreign name of the Company (if applicable) | WFHT | ||
| Legal representative | Yin Zhenyuan | ||
II. Person/Way to contact
| Secretary of the Board | Rep. of security affairs | |
| Name | Liu Jinjun | Xu Kan |
| Contact add. | No.5 Huashan Road, Xinwu District, Wuxi | No.5 Huashan Road, Xinwu District, Wuxi |
| Tel. | 0510-80505999 | 0510-80505999 |
| Fax. | 0510-80505199 | 0510-80505199 |
| Web@weifu.com.cn | Web@weifu.com.cn |
III. Other information
1. Company contact information
Has the registered address, office address, postal code, website, email address, etc. of the Company changed during the reportingperiod?
□ Applicable ?Not applicable
The registered address, office address, postal code, website, and email address of the Company remained unchanged during thereporting period. Please refer to the 2023 Annual Report for details.
2. Information disclosure and location
Has the information disclosure and location changed during the reporting period?
□ Applicable ? Not applicable
The website and media name and website of the stock exchange where the Company disclosed its semi-annual report, and theplace of placement of the Company’s semi-annual report remains unchanged during the reporting period. Please refer to the 2023Annual Report for details.
3. Other relevant information
Is there any change in other relevant information during the reporting period?
□ Applicable ?Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes ? No
| Amount in current period | Amount in last period | Year-on-year increase(+)/decrease(-) | |
| Operation income (RMB) | 5,694,233,552.72 | 6,129,649,047.40 | -7.10% |
| Net profit attributable to shareholders of the listed Company(RMB) | 954,341,269.90 | 948,760,859.55 | 0.59% |
| Net profit attributable to shareholders of the listed Company after deducting extraordinary gain and loss(RMB) | 975,076,832.34 | 830,878,251.37 | 17.35% |
| Net cash flows arising from operating activities (RMB) | 887,892,317.37 | 1,089,961,237.42 | -18.54% |
| Basic earnings per share (RMB/Share) | 0.98 | 0.98 | 0.00% |
| Diluted earnings per share (RMB/Share) | 0.98 | 0.98 | 0.00% |
| Weighted average ROE | 4.84% | 5.24% | -0.40% |
| Ending balance of current period | Ending balance of last period | Year-on-year increase(+)/decrease(-) | |
| Total asset (RMB) | 27,864,965,288.97 | 28,081,087,791.81 | -0.77% |
| Net asset attributable to shareholders of listed Company (RMB) | 19,363,215,440.23 | 19,399,892,671.78 | -0.19% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net asset disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
The Company had no difference of the net profit or net asset disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.
2. Difference of the net profit and net asset disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ?Not applicable
The Company had no difference of the net profit or net asset disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the reporting period.VI. Items and amounts of extraordinary gain and loss?Applicable □Not applicable
In RMB
| Item | Amount | Note |
| Gain/loss from the disposal of non-current asset (including the write-off that accrued for impairment of asset) | 5,473,643.37 | |
| Governmental grants reckoned into current gain/loss (except for those with normal operation business concerned, and conform to the national policies & regulations and are enjoyed at a fixed basis according to certain standards and continuously affect the gain/loss of the Company) | 25,710,446.36 | |
| Except for effective hedging business related to the normal operation of the Company, the fair value gain and loss arising from the holding of financial asset and financial liability by non-financial enterprises, as well as the gain and loss arising from the disposal of financial asset and financial liability | -105,941,910.61 | |
| Gain/loss of asset delegation on others’ investment or management | 37,850,294.00 | |
| Gain/loss from debt reorganization | -284,132.56 | |
| Other non-operating income and expenditure except for the aforementioned items | 5,057,475.05 | |
| Receivables and contract asset that have undergone separate impairment testing shall have their impairment provisions reversed | 5,343,622.79 | |
| Accounts receivable collected in the current period while written off in previous years | 10,418.17 | |
| Less: Impact on income tax | -6,351,104.63 | |
| Impact on minority shareholders’ equity (post-tax) | 306,523.64 | |
| Total | -20,735,562.44 | -- |
Specific information on other items of gain and loss qualified the definition of extraordinary gain and loss
□Applicable ?Not applicable
The Company does not have other items of gain and loss qualified the definition of extraordinary gain and lossInformation on the definition of extraordinary gain and loss that listed in the Q&A Notice No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Gain and Loss as the recurring gain/loss
□Applicable ?Not applicable
The Company does not have any extraordinary gain and loss listed under the Q&A Notice No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Gain and Loss defined as recurring gain/loss
Section III. Discussion and Analysis of the ManagementI. Major Business of the Company within the reporting period(I) Main business engaged by the CompanyThe main business of the Company is the research and development, production and sales of core automotive parts, and currentlyhas four business segments, including energy conservation and emission reduction, green hydrogen energy, intelligent electric,industrial and other. During the reporting period, the main products sold were diesel fuel injection system, exhaust aftertreatmentsystem, air intake system, core parts of fuel cells, core parts of electric drive systems, core parts of thermal management systems,cabin core parts, core parts of brake systems, etc.
1. Diesel fuel injection system, including high pressure oil pump, high pressure oil rail, injector, filter and other products, widelyused in diesel engines of all levels of power, supporting various trucks, buses, construction machinery, marine, agriculturalmachinery, generator sets, and can meet the national standard VI, off-road stage IV emission regulations, leading in the productvariety, production scale, market share. While doing a good job in supporting domestic engines, some products are exported to theAmericas, Southeast Asia, the Middle East and other regions.
2. Exhaust aftertreatment system, including diesel purifier, gasoline purifier, natural gas purifier, muffler, catalyst and otherproducts, can meet the national VI standard, off-road stage IV emission regulations, with leading technical level, market scale andproduction capacity in China, widely used in traditional power & plug-in hybrid passenger vehicles, commercial vehicles, off-roadmachinery and other fields, and can provide strong support for product upgrading and renewal of OEMs.
3. Air intake system, including diesel supercharger, gasoline supercharger, natural gas supercharger and other products, can meetthe national VI, off-road stage IV emission regulations, with the scope of application covering commercial vehicles, traditionalpower & plug-in hybrid passenger vehicles, construction machinery, agricultural machinery, generator sets and other fields, andcan support the major domestic OEMs and automobile manufacturers .
4. Core parts of fuel cells, including membrane electrode, bipolar plate (graphite, metal), catalyst and BOP critical parts (such asvalves, pumps, air compressor critical parts) and other products, mainly support domestic and foreign hydrogen fuel cell stack andsystem manufacturers and energy storage enterprises.
5. Core parts of electric drive systems, including motor shaft, end cover, water jacket and other products, mainly support domesticand foreign new energy passenger car enterprises or electric drive system manufacturers.
6. Core parts of thermal management systems, including electronic oil pump, electronic water pump, thermostat and other products,mainly support domestic and foreign new energy passenger vehicles, commercial vehicle enterprises.
7. Cabin core parts, including car seat assembly, seat skeleton, electric long slide, shock absorber and other products, mainlysupport domestic mainstream commercial vehicles, passenger car enterprises.
8. Core parts of brake systems, including mechanical vacuum pump and other products, mainly support domestic and foreignmainstream passenger car enterprises.(II) Business Model
The Company adheres to the business philosophy of "producing high-quality products, establishing a renowned brand, andachieving shared value growth." It operates under a model where the parent Company provides centralized management whilesubsidiaries handle decentralized production. The parent Company is responsible for formulating strategic development plans andbusiness objectives. It also oversees the subsidiaries in areas such as finance, major personnel management, core raw materials,quality control, and technology research and development. The subsidiaries manage production based on market orders, ensuringuniform product quality, timely understanding of customer needs, logistics cost savings, timely product supply, and improvedeconomic efficiency for the Company.(III) Industry Development
The Company operates in the automotive parts manufacturing industry. In the first half of 2024, the domestic economy showed amoderate recovery. Against this backdrop, the Chinese automotive market experienced overall growth driven by new energyvehicles and exports. A new round of price wars in the first quarter caused market hesitation and significant volatility, showing a"V" shaped trend. In the second quarter, the release of new technologies and models, along with the introduction of the nationalvehicle replacement policy, spurred local and corporate promotional activities, leading to a steady increase in market demand andsales. From January to June 2024, automobile production and sales reached 13.891 million and 14.047 million units respectively,growing by 4.9% and 6.1% year-on-year. Exports continued to grow rapidly, significantly contributing to the overall marketgrowth, with 2.793 million units exported, a 30.5% increase year-on-year.
1. Commercial Vehicle Market
In 2024, the commercial vehicle market started strong, aided by the vehicle replacement policy, the gradual digestion of previouslyoverdrawn demand, structural growth in natural gas heavy trucks, and exports. Overall performance was better than the sameperiod last year. However, issues such as insufficient domestic demand, sluggish real estate investment, slow infrastructureconstruction, and a bleak domestic freight industry posed significant growth pressures. Sales declined month-on-month in thesecond quarter. From January to June 2024, production and sales of commercial vehicles reached 2.005 million and 2.068 millionunits respectively, increasing by 2.0% and 4.9% year-on-year, with exports reaching 454,000 units, a 25.7% increase year-on-year.From a breakdown by vehicle type, in the period from January to June 2024, truck production and sales were 1.764 million and
1.824 million units, respectively, representing year-on-year increases of 1.4% and 4.4%. Bus production and sales were 241,000and 244,000 units, respectively, representing year-on-year increases of 6.4% and 9.3%.From a breakdown by vehicle type, all truck segments saw positive growth, with medium trucks showing the most significantincrease. Heavy trucks sold 504,000 units, up 3.3% year-on-year; medium trucks sold 70,000 units, up 20.5%; light trucks sold971,000 units, up 4.2%; and mini trucks sold 279,000 units, up 3.6%. In the bus segments, large and medium-sized buses alsoshowed rapid growth. Large buses sold 32,000 units, up 33.9% year-on-year; medium buses sold 19,000 units, up 30%; and lightbuses sold 193,000 units, up 4.5%.
2. Passenger Vehicle Market
In the first half of 2024, stimulated by the vehicle replacement policy, local subsidies, the introduction of new models, pricepromotions, and strong demand for new energy passenger vehicles and exports, the market maintained steady growth. FromJanuary to June 2024, production and sales of passenger vehicles reached 11.886 million and 11.979 million units, increasing by
5.4% and 6.3% year-on-year, with exports reaching 2.339 million units, a 31.5% increase year-on-year. Domestic brands sawsignificant growth in both exports and the new energy vehicle market, achieving a market penetration rate of 61.9%.
3. New Energy Vehicle Market
The policy supporting vehicle replacement, the launch of a new round of new energy vehicle promotions, and trends such as"equal rights for oil and electricity" and "electricity being cheaper than oil" further boosted the penetration of new energy vehicles.From January to June 2024, production and sales of new energy vehicles reached 4.929 million and 4.944 million units, increasingby 30.1% and 32% year-on-year, with a market share of 35.2%. Sales of pure electric vehicles were 3.019 million units, up 11.6%year-on-year; plug-in hybrid vehicles were 1.922 million units, up 85.2%, becoming the main driver of growth in the new energyvehicle market; and fuel cell vehicles were 3,000 units, up 7.1%.
4. Off-road Market
In the first half of 2024, demand for infrastructure and real estate did not significantly improve. However, favorable factors such asthe vehicle replacement policy and the initiation of equipment renewal cycles in regions like Shandong and Hainan improveddomestic demand. Conversely, overseas demand cooled, increasing downward pressure on exports. Agricultural machinery salesdeclined due to multiple factors including grain prices, emission upgrades, subsidy levels, and international conditions. FromJanuary to June 2024, sales of diesel engines for construction machinery totaled 442,000 units, down 7.4% year-on-year, and foragricultural machinery totaled 826,000 units, down 4.2% year-on-year.
(Note: The above industry data is sourced from the China Association of Automobile Manufacturers and the China InternalCombustion Engine Industry Association)
(IV) Company Operations During the Reporting PeriodSince the beginning of this year, the Company has diligently implemented its annual work goals and actively addressed industryopportunities and challenges. During the reporting period, the Company achieved operating income of 5.694 billion yuan, adecrease of 7.10% year-on-year, while net profit attributable to shareholders of the listed Company was 954 million yuan, anincrease of 0.59% year-on-year.Main Activities During the Reporting Period:
1. Seizing market opportunities, traditional and emerging businesses developed synergistically.Energy-saving and Emission Reduction Products: Post-treatment system products seizing rapid growth opportunities in hybridpassenger vehicles and natural gas commercial vehicles, sales of gasoline purifiers exceeded 1.87 million units, up 48% year-on-year; sales of natural gas purifiers reached 55,000 units, up 384% year-on-year, post-treatment system products secured projectsfrom several joint venture brands and leading passenger vehicle customers, achieving mass production for multiple commercialvehicle projects, and steadily increasing market share in both passenger and commercial vehicle markets. Air intake systemproducts: Gasoline turbocharger sales exceeded 310,000 units, up 308% year-on-year, maintaining rapid growth, with majorpassenger vehicle customer projects gradually entering mass production. Sales of four-cylinder diesel turbochargers increased byover 12% year-on-year, continuing to lead the industry, while natural gas turbocharger sales doubled year-on-year.Green Hydrogen and Smart Electric Products: Core components of hydrogen fuel cells, such as metal bipolar plates, havecompleted mass delivery for domestic customer projects. Key BOP products, including thermostats, proportional valves, andelectronic water pumps, have secured multiple customer projects. PEM (proton exchange membrane) water electrolysis hydrogenproduction systems and equipment have achieved project cooperation with some customers in scientific research anddemonstration. Radar products have accelerated several intelligent driving customer projects, with client testing and new sampledevelopment actively underway. Electronic oil pump products have achieved mass production supply for multiple new energypassenger vehicle projects, with capacity expansion accelerating. Existing commercial vehicle customer projects for automotiveseats remain stable, with breakthroughs achieved in passenger vehicle projects. The Fuzhou Lianhua base has been completed,with key customer projects gradually entering mass production.
2. Accelerating product iteration and upgrading, increasing R&D efforts.
Energy-saving and Emission Reduction Products: Completed the A-sample development of high-pressure fuel pumps and injectorsfor ultra-high-pressure electronic control fuel injection systems, as well as engine performance matching tests for key customers.Developed the B-sample for natural gas dual-fuel injectors and pressure regulation modules, and completed the initial round oftrial production. Finished performance tests for methanol dual-fuel in-cylinder direct injection systems and initiated pre-researchon methanol single-fuel in-cylinder direct injection technology and hydrogen engine injection technology. Developed multiplepost-treatment products for hybrid passenger vehicles and export projects, expanded product development into commercial andoff-road sectors, and advanced methanol engine product development. Conducted pre-research on technologies for productsmeeting future emission standards. Accelerated the development of turbocharger products for gasoline hybrid passenger vehiclesand diesel/natural gas commercial vehicles, with key customer projects reaching mass production. Launched methanol engineturbocharger projects in the market and actively promoted the use of 48V electric turbochargers in customer pre-research projects.Green Hydrogen and Smart Electric Products: Completed B-sample development for 35 MPa pressure relief valves; continued toexpand applications for low-pressure hydrogen valve products and completed C-sample development for exhaust valves.Continued development and industrialization of key BOP components, including electronic water pumps, thermostats, andhydrogen circulation pumps. Achieved production validation for alloy catalysts and multiple rounds of production validation forfuel cell membrane electrode production lines, while establishing project interfaces for single-cell batteries. Completed the overalldesign of the 100 kW PEM water electrolysis hydrogen production system platform and began integrating and assembling various
modules. Finished functional development and customer validation for barrier radar products and continued developing andbuilding customer projects and industrialization capabilities for 4D imaging radar, focusing on cost reduction.
3. Strengthening strategic planning and execution, and continuously promoting new business investments and cooperation.Strategic Planning: Implement and refine the mid-term review and improvement plan of the 14th Five-Year Plan. Advance in-depth planning for new business areas such as VH and hydraulic systems. Progress with the mid- to long-term planning, review,and updating of hydrogen fuel cell strategies. Promote the business planning for the Huishan Intelligent Industrial Park. Conductmarket research and analysis on hydrogen storage, and actively advance annual strategic research on automotive seats, humanoidrobots, and air suspension components. Strengthen local government collaboration on radar and hydrogen storage projects.Investment and Cooperation: Completed the signing of an investment cooperation agreement with Germany's Voith Group forhigh-pressure hydrogen storage. Finalized the spin-off of Weifu Intelligent Sensing business and established an independent jointventure. Continued the development of three major global hydrogen energy bases, investing in the R&D and capacity expansion ofIRD's European and North American bases, as well as Borit’s European base. Focused on enhancing domestic capabilities of theWFQL joint venture and constructing the hydrogen energy industrial park in the Asia-Pacific region. Introduced partners for theautomotive seat business and established a new joint venture. Collaborated with WFEC shareholders to form a new joint venture,extending the value chain of precious metal compounds.
4. Strengthen the quality operation system and continue advancing intelligent manufacturing.Develop and promote a comprehensive annual quality management roadmap covering five areas: quality systems, qualityprevention, process quality, problem-solving, and quality team building, with 16 sub-items. Establish an external auditimprovement experience repository and optimize updates to the quality manual. Promote the comprehensive application of specialcharacteristics and development quality valves in 22 development projects. Plan and complete special characteristics re-identification and re-control evaluations for 13 business units/subsidiaries and 22 core products. Enhance and train manufacturingquality engineers on quality tools and methods. Improve quality improvement information sharing and communication. Completethe iteration of the FMS tooling management system and pilot its launch. Expand the application of the TMS tool managementsystem and WMS warehousing management system. Continuously optimize and promote the EMS energy management platform,actively advancing energy-saving and consumption-reduction measures. Complete the design of the digital factory project business,application, and data architecture for WFAC. Progress is smooth for engineering projects such as the R&D building, Phase VI ofthe 103 plot factory, the hydrogen energy industrial park, and the Huishan Chang'an industrial park, which are advancing asplanned.
5. Strengthening Operational Quality and Enhancing Management Efficiency
Refine the monitoring and analysis dimensions for business lines and departments, and enhance tracking of key products andprojects. Standardize the functional responsibilities of business units. Develop and implement management solutions for newdepartment control models, organizational functions, and system processes. Optimize financial procedures, update relevantsystems and processes, identify business risks, and improve process efficiency. Strengthen financial risk management byaddressing capital needs and current management status, and continue advancing product redemption. Optimize procurementmanagement and core operational capabilities, and continue developing the SRM procurement platform. Enhance the analysis anddisposal of slow-moving inventory, creating specialized optimization projects for such stock. Continuously improve riskmanagement capabilities, strengthen the review, control, and response to risk issues at all levels, provide various internal controlmanagement training, and enhance the risk management awareness and skills of key personnel. Recruit talent for strategic newbusinesses and key projects, optimize and adjust the talent structure, and improve talent fit. Implement a performance managementinformation system to align individual performance goals with organizational performance. Promote international talentdevelopment by planning and establishing international dispatch policies, optimizing international talent competency models,setting talent selection standards, and advancing specialized training.
II. Analysis on Core Competitiveness
1. Industry and brand advantages. Established in 1958, with more than sixty years of development, the Company has become arenowned manufacturer of auto parts in China and has established long-term and stable cooperation with major domestic OEMsand vehicle manufacturers. The existing core auto parts products such as automotive fuel injection system, exhaust gas after-treatment system, air intake system and core parts of hydrogen fuel cell have strong market competitiveness and high marketshares. The Company is a leading enterprise in the internal combustion engine industry of China and ranked 35th on the 2023 Top100 Chinese Automotive Parts Enterprises. The subsidiary companies of the Company, WFLD and WFTT, were respectivelyawarded the seventh and eighth batches of national level manufacturing industry single champion enterprises, while WFTT andWFJN were respectively awarded the national level specialized and innovative “Little Giant” enterprises.
2. Technology and product advantages. The Company is a national high-tech enterprise with scientific research platforms such asNational Enterprise Technology Center, National High Technology Research and Development Program AchievementIndustrialization Base, Postdoctoral Research Station, Jiangsu Provincial Postgraduate Workstation, as well as several provincialengineering technology research centers, provincial engineering laboratories and other R&D institutions, which mainly focus onfuel injection system for vehicles, exhaust gas after-treatment system, air intake system, hydrogen fuel cell, intelligent network,thermal management system and other businesses for technological innovation and product development. The Company hasacquired a number of key core technologies, with the technical indicators of its main products at the leading level in the industry.In recent years, the Company has made key strategic layout in the fields of green hydrogen energy, intelligent electric powerindustries and other fields, established the Institute of New Energy and Netlink Technology, and formed product technologyresearch and development capabilities in hydrogen fuel cell core components, research and development capabilities for renewableenergy hydrogen production, core parts of E-drive, thermal management system components, intelligent perception modules,hydraulic systems, core components as well as other components.
3. The Company has implemented Weifu Production System (WPS) with lean concept and established an overall process qualitymanagement system with relatively strong manufacturing, quality assurance, cost control and product delivery capabilities. Withthe focus on smart manufacturing, the Company has continued to build a smart factory with Weifu characteristics and promote theapplication of big data analysis and AI application, which can strongly support the future business development of the Company.The Company’s high-pressure common rail pump intelligent manufacturing demonstration factory has been selected for the 2023list of intelligent manufacturing demonstration factories announced by the Ministry of Industry and Information Technology
4. Marketing and service advantages. The Company features a stable, professional and experienced marketing team, which canprovide targeted support and services based on customer demands, as well as cordial customer relationships. With regard to long-term strategic customers, the Company has established a four-in-one marketing coordination group consisting of responsibleleaders, key account managers, marketing departments and business divisions, and regular visits among the management of thecompanies to promote communication and cooperation. The Company has a relatively complete after-sales service system, and hasbuilt an after-sales service network, intelligent service platform, and set up special maintenance technical service stationsnationwide to regularly train end-users in the use of maintenance and fault analysis and judgment, so as to provide customers withfast, timely and professional all-round after-sales services.
5. Talent team advantages. The management team of the Company has extensive experience in the auto parts industry withexcellent industry reputation. The Company attaches importance to the growth of employees as well as the development of coretalents. With years of accumulation, the Company has deposited a group of professional and high-quality management andtechnical talents and established a reasonable talent echelon, which provides a strong guarantee of human resources for the long-term and stable development of the Company. The human resource management system of the Company is relativelycomprehensive, and the continuously optimized human resource management system has provided a fair platform for careerdevelopment of employees to realize their values. The Company attaches importance to the service and care for employees, and
aims to enhance the service experience of employees through the construction of employee self-help platform to create a workingenvironment with warmth and a sense of belonging.
6. International cooperation advantages. The Company is committed to the core automotive parts industry and has long beencooperating with strategic partners at home and abroad in depth. The Company has been cooperating with industry giant RobertBosch Compan since 1984, and has established a long-term and stable cooperation relationship with Bosch and continuouslyexpanded cooperation in new business areas, and the cooperation model between the two sides has become an industry model.Meanwhile, the Company has built joint ventures with Autocam in the United States, and cooperates closely in the field of high-end precision manufacturing. By long-term cooperation with renowned enterprises in Europe and the United States, the Companyhas cultivated a group of middle and senior management and technical personnel with international communication abilities,international visions and familiarity with international standards, and has mastered R&D process design, quality control andproduction management capabilities with international advanced levels, which has promoted favorable development of thebusiness of the Company as well as international business and market development.
7. Excellent Corporate Culture. The Company has established a unique corporate culture system with Weifu’s distinctive features,characterized by "Virtue" and "Wisdom." These cultural pillars guide and drive the Company’s strategic planning. “Virtue”encompasses the principles of entrepreneurship, foundational work, and business growth, while “Wisdom” representsbreakthroughs, innovation, and development, integrating these principles into the Company's management practices. The Virtue-Wisdom culture has become the growth gene of Weifu, with the belief that “Esteemed for Virtue and Wisdom, Trusted by Users”standing as a lasting conviction and unchanging declaration. Moving forward, the Company will continue to drive better livingthrough “Virtue and Wisdom”, adhering to the core values of “Focus, Innovation, Responsibility, and Integration,” and promotingthe spirit of “Doing Practical Work, Taking Initiative, Cooperating Well, and Striving to be First” to support the vision ofbecoming “Weifu: A Century-Old Expert in Automotive Core Components”.III. Analysis of the Main business
OverviewRefer to the relevant content of “1. Major Business of the Company within the reporting period”.Year on year changes in major financial data
In RMB
| Amount in current period | Amount in last period | Year-on-year increase(+)/decrease(-) | Reason | |
| Operation income | 5,694,233,552.72 | 6,129,649,047.40 | -7.10% | |
| Operation cost | 4,620,552,753.54 | 5,163,871,731.26 | -10.52% | |
| Sales expense | 113,227,996.84 | 103,031,481.40 | 9.90% | |
| Administration expenses | 330,939,659.31 | 299,195,729.59 | 10.61% | |
| Financial expenses | 8,211,838.63 | 38,462,182.45 | -78.65% | Mainly due to decrease in loan interest |
| Income tax expense | 23,703,720.56 | 29,332,279.74 | -19.19% | |
| R&D expenses | 302,233,285.34 | 351,887,038.12 | -14.11% | |
| Net cash flows arising from operating activities | 887,892,317.37 | 1,089,961,237.42 | -18.54% | |
| Net cash flows arising from investing activities | 174,939,323.78 | 244,240,067.48 | -28.37% | |
| Net cash flows arising from financing activities | -1,238,558,151.40 | -1,253,388,210.29 | 1.18% | |
| Net increase of cash and cash equivalents | -187,685,655.02 | 110,347,069.15 | -270.09% | Mainly due to a year-on-year decrease in net cash flows from operating and investing activities |
Significant changes in the composition or source of profits of the Company during the reporting period
□ Applicable ?Not applicable
There have been no significant changes in the composition or source of profits of the Company during the reporting period.Composition of operation income
In RMB
| Amount in current period | Amount in last period | Year-on-year increase(+)/decrease(-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation income | ||
| Total operation income | 5,694,233,552.72 | 100% | 6,129,649,047.40 | 100% | -7.10% |
| By industry | |||||
| Automotive components | 5,602,366,875.45 | 98.39% | 6,052,163,689.76 | 98.74% | -7.43% |
| Other business | 91,866,677.27 | 1.61% | 77,485,357.64 | 1.26% | 18.56% |
| By product | |||||
| Automotive fuel management system | 2,389,384,035.29 | 41.96% | 3,071,891,040.17 | 50.12% | -22.22% |
| Automotive post-processing system | 1,788,451,511.09 | 31.41% | 2,088,560,385.02 | 34.07% | -14.37% |
| Air intake system | 501,982,916.15 | 8.82% | 281,223,149.82 | 4.59% | 78.50% |
| Other automotive components | 922,548,412.92 | 16.20% | 610,489,114.75 | 9.96% | 51.12% |
| Other business | 91,866,677.27 | 1.61% | 77,485,357.64 | 1.26% | 18.56% |
| By region | |||||
| Domestic | 4,908,641,107.58 | 86.20% | 5,232,339,300.50 | 85.36% | -6.19% |
| Foreign | 785,592,445.14 | 13.80% | 897,309,746.90 | 14.64% | -12.45% |
The industries, products, regions or sales model accounting for over 10% of the Company’s operation income or operation profit?Applicable □ Not applicable
In RMB
| Operation income | Operation cost | Gross profit ratio | Year-on-year increase(+)/decrease(-) of operation revenue | Year-on-year increase(+)/decrease(-) of operation cost | Year-on-year increase(+)/decrease(-) of gross profit ratio | |
| By industry | ||||||
| Automotive components | 5,602,366,875.45 | 4,590,170,191.12 | 18.07% | -7.43% | -10.65% | 2.95% |
| By product | ||||||
| Automotive fuel management system | 2,389,384,035.29 | 1,832,154,586.09 | 23.32% | -22.22% | -26.49% | 4.45% |
| Automotive post-processing system | 1,788,451,511.09 | 1,532,494,804.84 | 14.31% | -14.37% | -19.29% | 5.22% |
| Air intake system | 501,982,916.15 | 389,330,715.88 | 22.44% | 78.50% | 83.83% | -2.25% |
| Other automotive components | 922,548,412.92 | 836,190,084.31 | 9.36% | 51.12% | 56.50% | -3.12% |
| By region | ||||||
| Domestic sales | 4,816,774,430.31 | 3,890,259,244.00 | 19.24% | -6.56% | -9.92% | 3.02% |
| Foreign sales | 785,592,445.14 | 699,910,947.12 | 10.91% | -12.45% | -14.50% | 2.14% |
In case of changes in the statistical caliber of principal business data in the reporting period, the Company will refer to theprincipal business data after adjustment in the latest period:
□Applicable ?Not Applicable
IV. Analysis of the non-main business
?Applicable □Not applicable
In RMB
| Amount | Ratio in total profit | Cause description | Whether be sustainable | |
| Investment earnings | 769,668,621.04 | 75.07% | Investment earnings mainly form the two joint ventures (RBCD and Zhonglian Electronics) with stock participated by the Company | The joint ventures RBCD and Zhonglian Electronics have stable production and operation , so the investment returns can be sustained and stable |
| Gain/loss of fair value changes | -105,956,110.61 | -10.33% | Mainly refers to the fair value changes of trading financial asset | |
| Asset impairment | -66,803,279.10 | -6.52% | Mainly refers to the provision of inventory impairment | |
| Non-operating income | 700,418.67 | 0.07% | ||
| Non-operating expense | 3,361,815.35 | 0.33% |
V. Asset and liability analysis
1. Major changes of asset composition
In RMB
| End of current period | End of last period | Ratio changes (+/-) | Note of major changes | |||
| Amount | Ratio in total asset | Amount | Ratio in total asset | |||
| Monetary funds | 2,725,960,523.49 | 9.78% | 2,274,771,699.14 | 8.10% | 1.68% | |
| Account receivable | 3,712,958,646.89 | 13.32% | 3,857,539,958.20 | 13.74% | -0.42% | |
| Inventory | 1,891,829,597.61 | 6.79% | 2,068,533,030.94 | 7.37% | -0.58% | |
| Investment real estate | 45,905,888.45 | 0.16% | 46,926,716.49 | 0.17% | -0.01% | |
| Long-term equity investment | 5,894,271,112.10 | 21.15% | 5,947,633,507.07 | 21.18% | -0.03% | |
| Fixed asset | 3,958,946,658.33 | 14.21% | 3,969,574,102.87 | 14.14% | 0.07% | |
| Construction in progress | 682,829,406.56 | 2.45% | 564,605,931.90 | 2.01% | 0.44% | |
| Right-of-use asset | 45,893,971.65 | 0.16% | 48,832,472.85 | 0.17% | -0.01% | |
| Short-term borrowings | 367,616,899.38 | 1.32% | 838,889,557.51 | 2.99% | -1.67% | Repay of borrowings |
| Contract liability | 81,968,819.02 | 0.29% | 77,686,881.24 | 0.28% | 0.01% | |
| Long-term borrowings | 100,000,000.00 | 0.36% | 299,800,000.00 | 1.07% | -0.71% | Reclassify long-term loans due within one year |
| Lease liability | 34,393,469.46 | 0.12% | 37,733,196.51 | 0.13% | -0.01% | |
| Other receivables | 1,795,554,563.56 | 6.44% | 919,684,126.81 | 3.28% | 3.16% | Dividend receivable from participating companies |
| Including: dividends receivable | 872,701,558.93 | 3.13% | 0.00% | 3.13% | ||
2. Major foreign asset
?Applicable □Not applicable
| Specific content of asset | Cause of formation | Asset scale | Location | Operation model | Control measures to ensure asset security | Revenue | The proportion of overseas asset to the Company’s net asset | Is there a significant impairment risk? |
| IRD | Business combinations not under common control | RMB 456,430,600 | Denmark | A wholly-owned subsidiary of the Company, engaged in R&D, production, and sales of fuel cell components | The Company will fully pay attention to changes in the industry and market, strengthen corporate governance, personnel management, financial management, audit supervision, and performance evaluation | Nil | 2.36% | No |
| Borit NV | Business combinations not under common control | RMB 224,164,400 | Belgium | A wholly-owned subsidiary of the Company, engaged in R&D, production, and sales of fuel cell components | The Company will fully pay attention to changes in the industry and market, strengthen corporate governance, personnel management, financial management, audit supervision, and performance evaluation | Nil | 1.16% | No |
| VHIO | Business combinations not under common control | RMB 686,762,400 | Italy | A wholly-owned subsidiary of the Company, engaged in R&D, production, and sales of fuel cell components | The Company will fully pay attention to changes in the industry and market, strengthen corporate governance, personnel management, financial management, audit supervision, and performance evaluation | RMB 5,249,100 | 3.55% | No |
3. Asset and liability measured by fair value
?Applicable □ Not applicable
In RMB
| Items | Amount at the beginning period | Changes of fair value gain/loss in current 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 | Other changes (+,-) | Amount at period-end |
| Financial asset | ||||||||
| 1.Trading financial asset(excluding derivative financial asset) | 3,195,837,265.02 | -106,008,941.62 | 1,124,500,000.00 | -2,113,010,341.20 | 2,101,317,982.20 | |||
| 2.Other equity instrument investment | 677,790,690.00 | 677,790,690.00 | ||||||
| 3.Receivable financing | 1,661,749,949.46 | 199,857,000.44 | 1,861,606,949.90 | |||||
| Subtotal of financial asset | 5,535,377,904.48 | -106,008,941.62 | 1,124,500,000.00 | -1,913,153,340.76 | 4,640,715,622.10 | |||
| Above total | 5,535,377,904.48 | -106,008,941.62 | 1,124,500,000.00 | -1,913,153,340.76 | 4,640,715,622.10 | |||
| Financial liability | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changes: Maturity redemptionWhether there have major changes on measurement attributes for main asset of the Company in the reporting period or not
□ Yes ?No
4. The asset rights restricted till end of the reporting period
In RMB
| Item | Book value at period-end | Restriction reason |
| Monetary funds | 128,231,135.19 | Cash deposit paid for bank acceptance |
| Monetary funds | 7,673,250.00 | IRD performance bond |
| Monetary funds | 204,620.00 | Cash deposit for Mastercard |
| Monetary funds | 4,000.00 | ETC freezing |
| Receivables financing | 897,650,012.34 | Notes pledge for bank acceptance |
| Total | 1,033,763,017.53 |
VI. Analysis on investment
1. Overall status
?Applicable □Not applicable
| Investment amount during the reporting period (yuan) | Investment amount for the same period last year (yuan) | Change |
| 667,248,929.69 | 754,371,270.53 | -11.55% |
2. Significant equity investments obtained during the reporting period
□Applicable ?Not applicable
3. Major non-equity investment in progress in the reporting period
□ Applicable ? Not applicable
4. Financial asset investment
(1) Securities investment
? Applicable □Not applicable
In RMB
| Variety of securities | Code of securities | Short form of securities | Initial investment cost | Accounting measurement model | Book value at the beginning of the period | Current gain/loss of fair value changes | 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 | SNAT | 199,208,000.00 | Measured by fair value | 76,756,716.00 | -34,157,388.00 | -34,157,388.00 | 42,599,328.00 | Trading financial asset | Own fund | |||
| Domestic and foreign stocks | 002009 | Miracle Automation | 69,331,500.00 | Measured by fair value | 71,073,900.00 | -17,662,500.00 | -17,662,500.00 | 53,411,400.00 | Trading financial asset | Own fund | |||
| Domestic | 601456 | Guolian | 12,000,000.00 | Measured by fair | 1,084,000.00 | -120,000. | -120,000. | 964,000.00 | Trading | Own |
| and foreign stocks | Securities | value | 00 | 00 | financial asset | fund | |||||||
| Total | 280,539,500.00 | -- | 148,914,616.00 | -51,939,888.00 | 0.00 | 0.00 | 0.00 | -51,939,888.00 | 96,974,728.00 | -- | -- | ||
| Disclosure date of securities investment approval of the Board | 2012-03-24 | ||||||||||||
| 2013-06-04 | |||||||||||||
(2) Derivative investment
□ Applicable ? Not applicable
There are no derivative investments during the reporting period.
5. Application of raised proceeds
□ Applicable ? Not applicable
There is no application of raised proceeds during the reporting period.VII. Sales of major asset and equity
1. Sales of major asset
□ Applicable ? Not applicable
No major asset was sold during the reporting period.
2. Sales of major equity
□ Applicable ? Not applicable
VIII. Analysis of the main controlling and participating companies? Applicable □ Not applicableMain subsidiary and participating enterprises with over 10% influence on net profit of the Company
In RMB
| Company name | Type | Main business | Register capital | Total asset | Net asset | Operating income | Operating profit | Net profit |
| WFLD | Subsidiary | Exhaust gas post-processing system | 502,596,300.00 | 5,954,348,308.77 | 3,049,686,246.97 | 1,846,296,992.48 | 259,367,992.76 | 242,294,718.16 |
| WFJN | Subsidiary | Automotive fuel injection system | 346,286,825.80 | 1,592,580,682.71 | 1,209,485,960.30 | 358,340,142.20 | 63,295,360.67 | 51,211,227.09 |
| RBCD | Equity participation enterprise | Automotive fuel injection system | USD 382,500,000.00 | 16,776,977,098.20 | 7,683,225,813.82 | 5,271,654,599.19 | 1,139,505,226.87 | 1,100,633,775.00 |
| Zhonglian Electronics | Equity participation enterprise | Gasoline system products | 600,620,000.00 | 9,684,138,777.56 | 8,345,432,001.34 | 17,135,271.43 | 1,257,109,884.12 | 1,254,847,847.50 |
Subsidiary acquired and disposed in the reporting period?Applicable ?Not applicable
| Corporate name | Ways of acquiring and | The impact on overall production, operation, and performance |
| disposing of subsidiaries during the reporting period | ||
| Weifu Lianhua Automotive Parts（Fuzhou）Co.，Ltd | Investment establishment | The Company is mainly engaged in the research and development, production, and sales of automotive components and intelligent onboard equipment. The establishment of this subsidiary has no significant impact on the overall production, operation, and performance of the Company during the reporting period. |
| Weifu Zhigan(Wuxi) Technology Co., Ltd | Investment establishment | The Company is mainly engaged in the research and development, production, and sales of intelligent onboard equipment. The establishment of this subsidiary has no significant impact on the overall production, operation, and performance of the Company during the reporting period. |
Description of major equity participation enterprises:
The year-on-year increase in net profits of Weifu Lida is mainly due to the optimization and improvement of profitability, thereduction of precious metal procurement costs, the enjoyment of value-added tax input deduction preferential policies, and theincrease in investment income; The significant year-on-year decrease in net profit of Weifu Jinning is mainly due to the impact ofreceiving government compensation for demolition in the same period of 2023. The main reason for the decrease in RBCD'soperating revenue and net profit is due to the impact of demand in the commercial vehicle market, resulting in a year-on-yeardecrease in orders for diesel fuel injection system products. The main reason for the year-on-year increase in net profit ofZhonglian Electronics is the growth of UAES’ business.IX. Structured subject controlled by the Company
□ Applicable ? Not applicable
X. Risks faced by the Company and corresponding measures
1. Macroeconomic and market risks
The current macroeconomic and market environment remains complex and severe, and the automotive industry will continue toface significant pressure. If the demand in the automotive industry decreases, it will have a certain impact on the Company'sproduction, operation, and profitability.Countermeasures: The Company will always pay attention to overseas situations, domestic macroeconomic and industrydevelopment trends, consolidate its existing leading position in the business market, seize emerging opportunities in segmentedfields, deepen strategic partnerships, and strive to improve the Company’s core competitiveness and overall risk resistance.
2. Operation management and control risks
With the acceleration of the international layout of the Company and the expansion of the scope of strategic new business,especially in the field of new energy, the management span is relatively large with potential operational management andinvestment risks.Countermeasures: The Company will continuously improve and optimize internal management, improve processes, and furtherregulate management and control operational risks; Reinforce the control of international business and accelerate the constructionof international talent team to satisfy the strategic development demands of the enterprise.
3. The risk of fluctuations in raw material prices
The price of aluminum, the main raw material of the Company, has kept rising, and the price of precious metals fluctuates greatly,bringing operational risks of rising costs to the Company.Countermeasures: The Company will actively improve its market forecasting ability, reasonably control inventory, optimizedemand forecasting and take other measures to reduce the risks caused by fluctuations in raw material prices. Besides, it willcontinue to optimize supply chain management, strengthen the vertical integration ability of the industrial chain, transfer somerisks through cost control measures and product price adjustments, so as to reduce the impact of raw material price fluctuations onperformance.
4. Risks related to financial instruments
The major financial instruments of the Company include monetary funds, structured deposits, receivables, investments in equityinstruments, financial products, borrowings, payables, etc. In the process of operation, the Company is exposed to risks related tofinancial instruments, including credit risks, market risks and liquidity risks.Countermeasures: Identify and analyze various risks exposed to the Company, establish appropriate risk tolerance thresholds andmanage risks, monitor various risks in a timely manner, ensure that risks are controlled within limits, minimize the negative impactof risks on the operating performance of the Company, and maximize the interests of shareholders and other investors.XI. Implementation of the Action Plan for “Double Improvement of Quality and Return”Whether the Company discloses the Action Plan for “Double Improvement of Quality and Return”
□Yes ?No
Section IV. Corporate GovernanceI. Annual shareholders’ general meeting and extraordinary shareholders’ general meetingheld during the reporting period
1. Annual shareholders’ general meeting during the reporting period
| Ordinal number of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Resolution of meeting |
| Annual general meeting of 2023 | AGM | 42.73% | 2024-05-17 | 2024-05-18 | (Notice No.: 2024-041) published on CNINFO website(www.cninfo.com.cn) |
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose votingrights restore
□ Applicable ?Not applicable
II. Changes in directors, supervisors and senior officers of the Company?Applicable □ Not applicable
| Name | Position held | Type | Date | Reason |
| Yin Zhenzhen | Chairman | Elected | May 17th, 2024 | Change of Board |
| Kirsch Christoph | Vice Chairman | Elected | May 17th, 2024 | Change of Board |
| Xu Yunfeng | Vice Chairman | Elected | May 17th, 2024 | Change of Board |
| Feng Zhiming | Director | Elected | May 17th, 2024 | Change of Board |
| Xu Daquan | Director | Elected | May 17th, 2024 | Change of Board |
| Zhao Hong | Director | Elected | May 17th, 2024 | Change of Board |
| Huang Rui | Director | Elected | May 17th, 2024 | Change of Board |
| Xing Min | Independent director | Elected | May 17th, 2024 | Change of Board |
| Feng Kaiyan | Independent director | Elected | May 17th, 2024 | Change of Board |
| Pan Xinggao | Independent director | Elected | May 17th, 2024 | Change of Board |
| Yang Fuyuan | Independent director | Elected | May 17th, 2024 | Change of Board |
| Ma Yuzhou | Chairman of Supervisory Board | Elected | May 17th, 2024 | Change of Supervisory Board |
| Chen Ran | Supervisor | Elected | May 17th, 2024 | Change of Supervisory Board |
| Liu Songxue | Supervisor | Elected | May 17th, 2024 | Change of Supervisory Board |
| Xu Yunfeng | General manager | appointment | May 17th, 2024 | Board appointment |
| Feng Zhiming | Vice General Manager, Financial Director | appointment | May 17th, 2024 | Board appointment |
| Xu Sheng | Vice General Manager | appointment | May 17th, 2024 | Board appointment |
| Rong Bin | Vice General Manager | appointment | May 17th, 2024 | Board appointment |
| Liu Jinjun | Vice General Manager, Secretary of the Board of Directors | appointment | May 17th, 2024 | Board appointment |
| Li Gang | Chief engineer | appointment | May 17th, 2024 | Board appointment |
| Wang Xiaodong | Chairman | Resignation upon expiration of term | May 17th, 2024 | Resignation upon expiration of term |
| Chen Yudong | Director | Resignation upon expiration of term | May 17th, 2024 | Resignation upon expiration of term |
| Yu Xiaoli | Independent director | Resignation upon expiration of term | May 17th, 2024 | Resignation upon expiration of term |
III. Profit distribution and capitalization of capital reserves during the reporting period?Applicable □Not applicable
| Plan to distribute every 10 bonus shares(share) | 0 |
| Proposed distribution of dividends per 10 shares(yuan)(tax included) | 2.20 |
| Share capital base for distribution plan (share) | 971,986,293 |
| Cash dividend amount (yuan) (tax included) | 213,836,984.46 |
| Cash dividend amount in other ways (such as share repurchase) (yuan) | 0 |
| Total cash dividends (including other methods) (yuan) | 213,836,984.46 |
| Distributable profit (yuan) | 11,898,655,155.15 |
| The proportion of total cash dividends (including other methods) to total profit distribution | 100% |
| Cash dividend policy | |
| Other | |
| Detail explanation on profit distribution or capitalization from capital reserves | |
| Based on the 971,986,293 shares which exclude the buy-back shares on buy-back account (25,000,000 A-stock) from total share capital 996,986,293 shares (According to the provisions of the The Company Law of the People's Republic of China, the listed Company does not have the right to participate in the profit distribution and the conversion of the capital reserve into the share capital by repurchasing the shares held by the Company through the special securities account), distributing 2.20 yuan (tax included) cash dividend for every 10 shares held, no bonus shares, without capitalization from capital reserves. The total amount of cash dividend to be paid is 213,836,984.46 yuan (tax included). If the total share capital of the Company changes before the implementation of the distribution plan, the Company will be allocated according to the principle of unchanged distribution proportion and adjustment of the total amount of distribution. The independent directors of the Company expressed their independent opinions and agreed to the above proposal.The above distribution plan complies with the provisions of the Company's articles of association and review procedures, fully protecting the legitimate rights and interests of small and medium-sized investors. | |
IV. Implementation of the Company’s stock incentive scheme, employee stock ownershipplan or other employee incentives
?Applicable □Not applicable
1. Stock incentive
On October 12, 2020, the Company held the 17th meeting of the 9th session of BOD to deliberated and approved relevant proposalas the “Restricted Stock Incentive Plan 2020 (Draft)”.On November 3, 2020, the Company held the second extraordinary shareholders’ general meeting of 2020 to deliberated andapproved relevant proposals as the “Restricted Stock Incentive Plan 2020 (Draft) and its summary”, “Proposal on AssessmentManagement Measures for Restricted Stock Incentive Plan Implementation” and “Proposal to Request the Shareholders’ GeneralMeeting to Authorized BOD to Fully Handle Matters Regarding Stock Incentive”.On November 12, 2020, the Company held the 21st meeting of 9th session of the BOD, as authorized by the second extraordinaryshareholders’ general meeting of 2020, deliberated and approved the “Proposal on Adjusting the List of Incentive Objects of theRestricted Stock Incentive Plan and the Number of Rights Granted” and the “Proposal on the First Grant of Restricted Stocks toIncentive Objects of the 2020 Restricted Stock Incentive Plan”. The BOD considers that conditions for the initial grant of 2020restricted stock incentive plan have been met, and November 12, 2020 is determine as the initial grant date, 19,540,000 restrictedshares are granted to 601 incentive recipients at a grant price of 15.48 yuan/Share.The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Company datedDecember 8, 2020.
On October 22, 2021, the Company held the 5th meeting of 10th session of the BOD to deliberate and approve relevant proposalsas the Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back and Cancellation of theRestricted Stocks Partially Granted without Circulation for year of 2020, and decided to buy-back and cancel 291,000 restrictedshares held by 11 incentive recipients that had been granted but not yet unlocked. As of December 20, 2021, cancellation of theabove mentioned buy-back shares are completed at the Shenzhen Branch of CSDC. After cancellation, number of the incentiverecipients for the first grant of 2020 restricted stock incentive plan was adjusted from 601 to 590, restricted stock of 19,249,000shares are being held in total.On December 7, 2022, the Company held the 14th meeting of 10th session of the BOD, and deliberated and passed the Proposalon the Achievement of the Conditions for the Release of Restricted Shares in the First Restricted Period of the 2020 RestrictedStock Incentive Plan, the Proposal on Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 andthe Proposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020. Itagreed to apply for the release of 7,632,000 restricted stocks granted to 581 incentive recipients and decided to buy-back andcancel 430,000 restricted shares held by 23 incentive recipients that had been granted but not yet unlocked. On December 16, 2022,the shares released from this restricted sale were formally available for circulation. As of February 16, 2023, the Companycompleted the buy-back and cancellation procedures for the aforementioned 430,000 shares at Shenzhen branch of ChinaSecurities Depository and Clearing Co., Ltd. After this cancellation, the number of incentive recipients granted for the first time bythe Company's restricted stock incentive plan in 2020 was adjusted from 590 to 568, holding 11,187,000 restricted stock in total.On April 26, 2023, the Company held the 16th meeting of the 10th session of Board of Directors and approved the Proposal onBuy-Back and Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back andcancel a total of 5,593,500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions forlifting restrictions. As of June 16, 2023, the Company has completed the repurchase and cancellation procedures for the above-mentioned shares at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this cancellation,there were 568 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan, holding a totalof 5,593,500.00 shares of restricted stock.On October 23, 2023, the Company held the 20th meeting of the 10th session of Board of Directors and approved the Proposal onBuy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided tobuy back and cancel a total of 417,000 restricted stocks that have been granted to 33 incentive recipients but do not meet theconditions for lifting restrictions. As of December 19, 2023, the Company has completed the buy-back and cancellation proceduresfor the above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. Afterthis cancellation, there were 535 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentiveplan, holding a total of 5,176,500.00 shares of restricted stock.On April 15, 2024, the Company held the 23rd meeting of the 10th session of Board of Directors and approved the Proposal onBuy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided tobuy back and cancel a total of 5,176,500.00 restricted stocks that have been granted to 535 incentive recipients but did not meetthe conditions for lifting restrictions. As of June 7, 2024, the Company has completed the buy-back and cancellation proceduresfor the above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. Afterthis cancellation, the Company’s 2020 restricted stock incentive plan has been completely terminated.
2. Implementation of employee stock ownership plan
□Applicable ?Not applicable
3. Other employee incentives
□Applicable ?Not applicable
Section V. Environmental and Social Responsibility
I. Major environmental issuesThe listed Company and its subsidiary whether belongs to the key sewage units released from environmental protectiondepartment?Yes □ NoPolicies and industry standards related to environmental protectionWuxi Weifu High-Tech Group Co., Ltd. and its subsidiaries diligently fulfill environmental protection policies and guidelines atall levels during production and operation, strictly comply with related national environmental protection laws and regulationssuch as Environmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of the People'sRepublic of China, Air Pollution Prevention and Control Law of the People's Republic of China, Water Pollution Prevention andControl Law of the People's Republic of China, Solid Waste Pollution Prevention and Control Law of the People's Republic ofChina, Noise Pollution Prevention and Control Law of the People's Republic of China, Energy Conservation Law of the People'sRepublic of China, Cleaner Production Promotion Law of the People's Republic of China, Environmental Protection Tax Law ofthe People's Republic of China, Measures for the Management of Hazardous Waste Transfer, Regulations on EnvironmentalProtection of Construction Projects, Regulations on the Administration of Emission Permits as well as related local environmentalprotection management rules and regulations, regularly collect newly promulgated laws and regulations on ecological andenvironmental protection at all levels, and perform compliance evaluation transformation by combining with production reality toensure compliance with the law at all times in the production and operation of the Company.In the process of production, the Company has constructed comprehensive waste gas and waste water treatment facilities and solidwaste storage facilities in strict accordance with the requirements of related standards such as Standards for ComprehensiveSewage Discharge, Water Quality Standards for Sewage Discharge into Urban Sewers, Comprehensive Emission Standards forAir Pollutants, and Pollution Control Standards for Hazardous Waste Storage, and guaranteed stable operation, in an effort tominimize the negative impact of production and operation on the ecological environment.Administrative licenses for environmental protectionAll the construction projects of Wuxi Weifu High-Tech Group Co., Ltd. and its subsidiaries have been prepared withenvironmental impact reports (forms), and have been approved by the local ecological and environmental authorities, and all haveobtained emission permits (registrations) in accordance with the requirements of laws and regulations, and the emission permits(registrations) to expire in 2023 have been changed or renewed in a timely manner, thereby effectively achieving licensedemission and legal and compliant emission.Discharge Permit of Wuxi Weifu High-Tech Group Co., Ltd., valid period: from March 27, 2023 to March 26, 2028;Discharge Permit of Nanjing Weifu Jinning Co., Ltd., valid period: From September 24, 2022 to September 23, 2027;Discharge Permit of Wuxi Weifu Chang’an Co., Ltd., valid period: from January 2, 2024 to January 1, 2029.Industry emission standards and the specific situation of pollutant emissions involved in production and business activities
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of emission outlets | Emission concentration/intensity | Implemented pollutant emission standards | Total emissions | Approved total emissions | Exceeding emission standards |
| WFHT | Water pollutants | Chemical Oxygen Demand, Ammonia Nitrogen, Total Nitrogen, | After being treated by the Company's sewage treatment plant, it is discharged | 1 | WFMS sewage discharge outlet | Chemical oxygen demand 48mg/L, ammonia nitrogen 0.072mg/L, total | Water Quality Standards for Sewage Discharge into Urban | Chemical oxygen demand 9.43 tons, ammonia nitrogen 0.015 tons, total phosphorus | Chemical oxygen demand 78 tons, ammonia nitrogen 7.8 tons, total | Nil |
| Total Phosphorus, Petroleum | into the municipal sewage pipeline network | phosphorus 0.15mg/L, total nitrogen 8.6mg/L, petroleum 2.44mg/L | Sewers (GB/T31962-2015) | 0.03 tons, total nitrogen 1.7 tons, petroleum 0.46 tons | phosphorus 0.52 tons, total nitrogen 10.4 tons, petroleum 1.95 tons | ||||
| Water pollutants | Chemical Oxygen Demand, Ammonia Nitrogen, Total Phosphorus, Total Nitrogen, Petroleum | After being treated by the Company's sewage treatment plant, it is discharged into the municipal sewage pipeline network | 1 | WFAC sewage discharge outlet | Chemical oxygen demand 76mg/L, ammonia nitrogen 22mg/L, total nitrogen 24.8mg/L, total phosphorus 2.76mg/L, petroleum 4.12mg/L | Water Quality Standards for Sewage Discharge into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand 2.0725 tons, ammonia nitrogen 0.5999 tons, total nitrogen 0.6763 tons, total phosphorus 0.0753 tons, petroleum 0.1124 tons | Chemical oxygen demand ≤ 19.0125 tons, ammonia nitrogen ≤ 1.416 tons, total nitrogen ≤ 2.2422 tons, total phosphorus ≤ 0.2627 tons, petroleum ≤ 0.5935 tons | Nil |
| Atmospheric pollutant | Non methane total hydrocarbons | The exhaust gas is systematically discharged after being treated by an oil mist processor and adsorbed by secondary activated carbon | 19 | 5 machining workshops, 10 heat treatment workshops, and 4 assembly workshops | 2.14mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 1.78 tons | 2.523 tons | Nil |
| Atmospheric pollutant | Non methane total hydrocarbons | The exhaust gas is systematically discharged after being treated by an oil mist processor and adsorbed by secondary activated carbon | 4 | 4 workshops in 101 | 1.43mg/m3 1.34mg/m3 3.18mg/m3 2.95mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.3204 tons | 1.5529 tons | Nil |
| Atmospheric pollutant | Non methane total hydrocarbons | The exhaust gas is systematically discharged after being treated by an oil mist processor and adsorbed by secondary activated carbon | 2 | 103 workshop 2 | 1.19mg/m3 1.92mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.268704 tons | Nil | Nil |
| Atmospheric pollutant | Non methane total hydrocarbons | The exhaust gas is systematically discharged after being treated by an oil mist processor and adsorbed by secondary activated carbon | 1 | One in Workshop 104 | 0.4mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.03456 tons | Nil | Nil |
| Atmospheric pollutant | Ammonia | Organized emissions from ammonia spray tower | 1 | 1 heat treatment workshop and | 0.75mg/m3 | Emission Standards for Odor Pollutants (GB14554 | 0.038 tons | 0.071 tons | Nil |
| and secondary activated carbon adsorption | 1 sewage treatment plant | -93) | ||||||||
| Atmospheric pollutant | Particulate matter | Organized emissions after bag dust removal | 2 | 2 heat treatment workshops | 1.1mg/m3； 1.2 mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.01 ton | 0.048 tons | Nil | |
| Solid waste | Hazardous waste such as waste oil, waste emulsion, cleaning waste liquid, grinding wheel ash, sewage pretreatment sludge, oil containing filter cartridges, etc | Entrust a legally qualified unit to dispose of it | Not applicable | Not applicable | Not applicable | Not applicable | 448 tons | 3958.2 tons | Nil | |
| WFCA | Water pollutants | Chemical oxygen demand, ammonia nitrogen, total phosphorus, total nitrogen, suspended solids | After being treated by the Company's sewage treatment plant, it is discharged into the municipal sewage pipeline network | one | Sewage discharge outlet | Chemical oxygen demand 32mg/L, suspended solids 24mg/L, ammonia nitrogen 3.8mg/L, total phosphorus 0.09mg/L, total nitrogen 3.98mg/L | Water Quality Standards for Sewage Discharge into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand 1.04 tons, suspended solids 0.78 tons, ammonia nitrogen 0.1235 tons, total phosphorus 0.0029 tons, total nitrogen 0.13 tons | Chemical oxygen demand 35.018 tons, suspended solids 26.263 tons, ammonia nitrogen 2.626 tons, total phosphorus 0.438 tons, total nitrogen 3.502 tons | Nil |
| WFJN | Water pollutants | Chemical oxygen demand, ammonia nitrogen | After being treated by the Company's sewage treatment plant, it is discharged into the municipal sewage pipeline network | one | Sewage discharge outlet | Chemical oxygen demand 89.5mg/L, ammonia nitrogen 14.55mg/L, total phosphorus 1.07mg/L, petroleum 5.4 mg/L | Water Quality Standards for Sewage Discharge into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand 4.064 tons, ammonia nitrogen 0.631 tons, total phosphorus 0.03 tons, petroleum 0.24 tons | Not applicable | Nil |
| Solid waste | Hazardous waste such as waste oil, oily sludge, grinding wheel dust, empty drums, activated carbon, filter cartridges, etc | Entrust qualified units to handle it | Not applicable | Not applicable | Not applicable | Not applicable | 147.8 tons | Not applicable | Nil |
Treatment of pollutantsThe Company mainly focuses on mechanical processing and generates oil mist exhaust gas (non methane total hydrocarbons). Theoil mist exhaust gas generated in WFAC101 workshop is treated by the high-efficiency oil mist purifier and discharged into theworkshop. After being treated by the secondary activated carbon adsorption device on the roof, the oil mist exhaust gas isdischarged through four 15m-high exhaust funnels; The oil mist exhaust gas generated in WFAC103 workshop is treated by anefficient oil mist purifier and a secondary activated carbon adsorption device, and then discharged through two 15m-high exhaustfunnels. The oil mist exhaust gas generated in WFAC104 workshop is treated by an efficient oil mist purifier and a secondaryactivated carbon adsorption device, and discharged through one 15 meter high exhaust pipe; The oil mist exhaust gas generated in
the WFMS machining workshop is treated by a high-efficiency oil mist purifier and a secondary activated carbon adsorptiondevice, and then discharged through four 15m-high exhaust funnels; The cleaning exhaust gas (non methane total hydrocarbons) istreated by an efficient oil mist purifier and a secondary activated carbon adsorption device, and then discharged through two 15m-high exhaust funnels; Quenching exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier anddischarged through three 15m-high exhaust funnels; The test exhaust gas (non methane total hydrocarbons) is treated by anefficient oil mist purifier and discharged through a 15m-high exhaust funnels; The shot blasting exhaust gas (particulate matter) istreated by a bag filter and discharged through two 15m-high exhaust funnels; The waste gas (ammonia, methanol, non methanetotal hydrocarbons) generated by the carbon nitrogen co infiltration process is treated by an acid spray tower and a secondaryactivated carbon adsorption device, and then discharged through a 15 meter high exhaust pipe; The carburized exhaust gas (nonmethane total hydrocarbons) is treated by a fire curtain combustion and secondary activated carbon adsorption device, and thendischarged through six 15m-high exhaust funnels; After being treated by a secondary activated carbon adsorption device, the wastegas from drying and solidifying adhesive (non methane total hydrocarbons, tin and its compounds) is discharged through two 15m-high exhaust funnels; The Company has built a comprehensive sewage treatment station with a designed processing capacity of1600m
/day in the WFMS plant area. After the production wastewater is regulated by an air flotation tank, it is discharged into thebiochemical system of the sewage station together with the domestic wastewater treated by septic tanks and oil separators fortreatment. The treated wastewater is connected to the municipal pipe network for standard discharge; One production wastewatertreatment station with a designed processing capacity of 120m3/day and one domestic wastewater treatment station with adesigned processing capacity of 200m
/day have been constructed in the WFAC factory area. After being regulated by an airflotation tank and treated by biochemical treatment, the production wastewater is discharged together with the treated domesticwastewater into the sewage discharge outlet. The treated wastewater is connected to the municipal pipeline network for standarddischarge.WFCA has built a sewage treatment station with a designed treatment capacity of about 300m
/d in the factory. After beingadjusted by the air flotation tank, the production wastewater is discharged into the biochemical system of the sewage station fortreatment together with the domestic sewage treated by septic tanks and grease traps, and the treated sewage is discharged via themunicipal pipe network according to the standard.WFJN has built a set of industrial sewage treatment station with a designed treatment capacity of about 150m?/d and a domesticsewage treatment station with a treatment capacity of about 450m?/d in the factory area. After being adjusted by the air flotationtank, the industrial wastewater will be discharged into the biochemical system of the sewage station together with the domesticsewage treated by septic tanks and grease traps for treatment, and the treated sewage will be discharged via the municipal pipenetwork according to the standard.Emergency Response Plan for Environmental IncidentsThe Company and its subsidiaries have formulated an Emergency Response Plan for Environmental Incidents in accordance withstandard regulations and the Company’s actual production circumstances. This plan was reviewed and approved by the relevantlocal authorities and subsequently filed, with periodic updates being made as necessary. During the reporting period, the Companyconducted both comprehensive and specialized emergency response drills for environmental incidents as per the annual emergencydrill plan. The results of these drills were evaluated, and corresponding emergency measures were refined.Investments in Environmental Governance and Environmental Protection Tax PaymentsThe Company and its subsidiaries have equipped themselves with comprehensive environmental protection facilities in line withenvironmental impact assessment (EIA) approvals and current environmental management requirements. All major air and waterpollutants are discharged within regulatory limits, and compliant storage facilities have been established for solid waste, which isentrusted to qualified entities for disposal. The level of investment in environmental protection is leading within the industry.During the reporting period, the Company and its subsidiaries timely paid environmental protection taxes on a quarterly basis, inaccordance with legal requirements.Environmental Self-Monitoring Plan
During the reporting period, the Company and its subsidiaries developed the 2024 Environmental Self-MonitoringPlan in accordance with relevant management requirements and regulations. This plan was reviewed and filed by thelocal ecological environment authorities. As per the plan, a qualified third-party institution has been commissioned toregularly monitor the Company's emissions, wastewater, and noise. All monitoring data is publicly disclosed onnational and local self-monitoring platforms in accordance with the Measures for Self-Monitoring and InformationDisclosure of Key National Monitoring Enterprises (Trial). The data complies with national and local standards, withno instances of exceeding emission limits.
Administrative Penalties for Environmental Issues During the Reporting PeriodNilOther Environmental InformationDuring the reporting period, the Company and its subsidiaries have regularly submitted pollution discharge permitcompliance reports (quarterly and annual reports) in accordance with national and local laws and regulations. All airand water pollutants are discharged within standard limits, hazardous waste is disposed of by qualified entities, andtransfer documentation is strictly followed.
Measures and Effects of Carbon Emission Reduction During the Reporting Period?Applicable □ Not ApplicableResource conservation and reduced consumption are essential components of the Company's core values. Thisapproach not only enhances business benefits but also improves overall resource utilization. Therefore, the Companycontinuously drives technological innovation to increase resource efficiency, actively promotes energy conservationand emission reduction, and strives for green production. The Company's main business currently focuses onautomotive energy conservation and emission reduction, with all primary products meeting national emissionstandards. Additionally, the Company is actively developing new energy businesses, such as green hydrogen andsmart electric vehicles, which contribute to achieving carbon peak and carbon neutrality goals. In the future, theCompany will concentrate on key upstream areas in the hydrogen energy industry chain, promoting the high-qualitydevelopment of hydrogen technologies to support green travel and build a clean energy system.Other Environmental Protection Information
Not applicableII. Social ResponsibilityDuring the reporting period, the Company actively adhered to the principle of "Promoting Common Prosperitythrough High-Quality Development," responded to the call of the times, and vigorously promoted the noble spirit of"Humanity, Benevolence, and Dedication." The Company is committed to becoming a solid force in advancing socialprogress. Through various channels such as the Wuxi Municipal Federation of Trade Unions, the Wuxi Red Cross,the Wuxi Industry Group, and the Weifu Group Public Welfare Mutual Aid Fund, the Company has established acomprehensive and in-depth support system, accurately addressing employees' needs. A total of 110 employees havebeen assisted, with aid funds amounting to approximately 200,000 RMB. The Company donated 200,000 RMB to theChina Workers' Development Foundation and, together with clients, participated in social welfare initiatives for truckdrivers. Additionally, the Company organized donations of 75,000 RMB to the Wuxi Red Cross and hasconsecutively received the "Red Cross Fundraising Work Organization Award" for several years. The Company hasmeticulously planned and implemented a series of health-related public welfare activities, such as free medicalconsultations at enterprises and the promotion of essential knowledge on CPR, the Heimlich maneuver, andhypertension prevention, which effectively enhanced employees' self-rescue and mutual-rescue capabilities.
During the reporting period, the Company organized employees to participate in public welfare activities such as"Warm Together with Love" and "Intelligent Drive, Love at Fusheng," as well as a walking event called "SpreadingLove with Every Step." These activities not only strengthened team cohesion but also spread goodwill within thecommunity. By organizing the "Labor Beautifies Bicycles" event, the Company actively promoted green travel andbeautified the urban environment. For the Dragon Boat Festival, the Company specially planned the "Warm DragonBoat Festival, Caring Hearts" themed activity, visiting nursing homes to bring festive warmth and care to the elderly.This promoted the traditional virtue of respecting and caring for the elderly and fostered a warm and harmonioussocial atmosphere. Furthermore, as part of the "Ten Thousand Enterprises Link Ten Thousand Villages, Walk theRoad to Revitalization" initiative, the Company partnered with Maohua Village in Taihua Town, Yixing, andprocured two batches of agricultural products during the reporting period.Looking ahead, the Company will continue to uphold the principle of "Creating Value Together, Sharing Results,"unwaveringly fulfill its social responsibilities, focus on environmental protection, employee welfare, and broadersocial welfare areas, and contribute more to building a harmonious society and creating a better future throughpractical actions.
Section VI. Important Matters
I. Undertakings that the actual controller, shareholders, related party, buyers and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable ? Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reportingperiod and have not yet fulfilled by the end of the reporting periodII. Occupation of the non-operational funds of the listed Company by controllingshareholders and its related party
□ Applicable ? Not applicable
No non-operational funds of the listed Company have been occupied by the controlling shareholders and its related party in thereporting period.
III. External guarantee out of the regulations
□ Applicable ? Not applicable
No external guarantee out of the regulations occurred in the reporting period.IV. Appointment and non-reappointment (dismissal) of CPA
Has the semi-annual financial report been audited?
□ Yes ? No
The Company's semi-annual report has not been audited.V. Statement on the latest “modified audit report” by BOD and the committee ofsupervisors
□ Applicable ? Not applicable
VI. Explanation from Board of Directors for “Qualified Opinion” that issued by CPA?Applicable □ Not applicableGongzheng Tianye Certified Public Accountants (Special General Partnership) issued an unqualified audit report with emphasis ofmatter paragraphs on the Company’s 2023 financial report on April 15, 2024.
1. Emphasize the matters involved in the item paragraph
As stated in Note XVIII.7 of the 2023 financial report, “Other Important Transactions and Matters that Affect Investor Decisions”,Wuxi Weifu International Trade Co., Ltd(“WFTR”), a wholly-owned subsidiary of WFHT, is currently in the stage of beingtransferred for review and prosecution for contract fraud. The result of the case is still uncertain in the future.
2. Explanation of changes and handling of the matters involved
At present, the case is in the stage of being prosecuted by the Wuxi People's Procuratorate to the Wuxi Intermediate People's Court.The Company will fulfill its disclosure obligations in a timely manner according to the progress of subsequent cases in accordancewith the law.VII. Bankruptcy reorganization
□ Applicable ?Not applicable
No bankruptcy reorganization for the Company in the reporting period
VIII. Major litigation and arbitrationSignificant litigation or arbitration matters?Applicable ? Not applicableNo significant litigation or arbitration matters for the Company in the reporting period.Other litigation and arbitration?Applicable □ Not applicable
| Basic information of litigation (arbitration) | Amount involved (10,000.00 yuan) | Whether expected liability have been formed | Progress of litigation (arbitration) | Results and impacts of litigation (arbitration) trial | Execution of litigation (arbitration) judgments | Date of disclosure | Index of disclosure |
| Summary of other lawsuits where the Company or subsidiary, as the plaintiff, did not meet the disclosure criteria standard for significant litigation | 1,198.99 | No | Under process according to the litigation process, some cases have not been closed yet, and closed cases will be executed according to the process | No significant impact on the Company's production and operation | Some cases have been executed, while others are still in the process of execution. | ||
| Summary of other lawsuits where the Company or subsidiary, as the plaintiff, did not meet the disclosure criteria standard for significant litigation | 4,667.67 | No | Under process according to the litigation process, and the case is currently under trial | No significant impact on the Company's production and operation | The case is in the trial process, has not yet been judged, and has not reached the execution stage |
IX. Penalty and rectification?Applicable □Not applicable
| Name | Type | Reason | Type of investigation punishment | Conclusion(if any) | Date of disclosure | Index of disclosure |
| WFHT | Other | 1. Disclosed inaccurate financial information 2. Failed to fulfill the review procedures and disclosure obligations for related party transactions in accordance with regulations 3. Undisclosed 2022 performance forecast | China Securities Regulatory Commission took administrative regulatory measures | Has been issued a warning letter by Jiangsu Securities Regulatory Bureau and recorded in the integrity file of the securities and futures market. | 2024-03-28 | Announcement on Receiving Warning Letter from Jiangsu Securities Regulatory Bureau (Notice No. 2024-005) disclosed by the Company on the website of CNINFO (www.cninfo. com. cn) |
| Wang Xiaodong ((Leave office) | Director | Failure to be diligent and responsible | ||||
| Xu Yunfeng | Director | |||||
| Ou Jianbin ((Leave office) | Other |
| WFHT | Other | Failed to timely disclose 2022 annual performance forecast as required | Disciplinary action taken by the stock exchange | Has been circulated a notice of criticism | 2024-03-27 | Decision on Issuing a Notice of Criticism and Disciplinary Action against WFHT and Related Parties on the Official Website of Shenzhen Stock Exchange |
| Wang Xiaodong ((Leave office) | Director | Failed to fulfill duties and obligations of honesty and diligence | ||||
| Xu Yunfeng | Director | |||||
| Ou Jianbin ((Leave office) | Other |
Explanation on rectification?Applicable □Not applicableAfter receiving the warning letter from Jiangsu Securities Regulatory Bureau, the Company attached great importance to it,earnestly learned from the lessons, strengthened the study of relevant laws, regulations, and normative documents, enhancedinformation disclosure management and improved the level of standardized operation so as to prevent such incidents fromhappening again. The Company and related personnel have submitted a written rectification report to the Jiangsu SecuritiesRegulatory Bureau as required.X. Integrity of the Company, its controlling shareholders and actual controllers
□ Applicable ? Not applicable
XI. Major related party transaction
1. Related party transaction involved with daily operation
?Applicable □ Not applicable
| Related party | Relationship | Type of related transaction | Content of related party transaction | Pricing principle | Related party transaction price | Related party 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 |
| WFPM | Associated enterprise | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 1,885.67 | 0.43% | 4,500 | N | According to the contract | Market price | 2024-04-16 | Notice No.: 2024-011 |
| RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 12,112.66 | 2.76% | 31,300 | N | According to the contract | Market price | ||
| WFEC | Joint venture of WFLD | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 15,064.19 | 3.43% | 119,800 | N | According to the contract | Market price | ||
| Bosch | Second largest shareholder of the Company | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 11,104.76 | 2.53% | 22,200 | N | According to the contract | Market price | ||
| EDRI | Holding Company of Wuxi Industry Development Group Co., Ltd. | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 2.83 | 0.00% | 0 | Y | According to the contract | Market price | ||
| FALCONTECH | Holding Company of Wuxi Industry Development Group Co., Ltd. | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 1.45 | 0.00% | 0 | N | According to the contract | Market price | Notice No.: 2024-011 |
| Wuxi IOT | IDG is the major shareholder, and a related natural person of the Company serves as the chairman | Procurement of goods and services | Purchase fixed asset | Fair market pricing | Market price | 2.07 | 0.00% | 0 | Y | According to the contract | Market price | ||
| WFPM | Associated enterprise | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 38.8 | 0.01% | 200 | N | According to the contract | Market price | 2024-04-16 | Notice No.: 2024-011 |
| RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 66,018 | 11.59% | 228,100 | N | According to the contract | Market price | ||
| WFEC | Joint venture of WFLD | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 24.76 | 0.00% | 1,500 | N | According to the contract | Market price | ||
| Bosch | Second largest shareholder of the Company | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 99,481.54 | 17.47% | 205,600 | N | According to the contract | Market price | ||
| Changchun Xuyang | Joint venture of WFLD | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 50.67 | 0.01% | 5,400 | N | According to the contract | Market price | ||
| Lezhuo Bowei | Associated enterprise | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 515.59 | 0.09% | 1,540 | Y | According to the contract | Market price | ||
| WFPM | Associated enterprise | Others | Procurement of fixed asset | Fair market pricing | Market price | 0.3 | 0 | N | According to the contract | Market price | |||
| RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Others | Payable technical service fees, etc | Fair market pricing | Market price | 0 | 500 | N | According to the contract | Market price | 2024-04-16 | Notice No.: 2024-011 | |
| RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Others | Receivable lease fees | Fair market pricing | Market price | 23.4 | 100 | N | According to the contract | Market price | |||
| Bosch | Second largest shareholder of the Company | Others | Payment of technical commission fees, etc | Fair market pricing | Market price | 243 | 500 | N | According to the contract | Market price | |||
| Bosch | Second largest shareholder of the Company | Others | Procurement of fixed asset | Fair market pricing | Market price | 0 | 100 | N | According to the contract | Market price | |||
| Bosch | Second largest shareholder of the Company | Others | Provide technology service, etc. | Fair market pricing | Market price | 0 | 200 | N | According to the contract | Market price | |||
| Bosch | Second largest shareholder of the Company | Others | Selling of fixed asset | Fair market pricing | Market price | 0 | 300 | N | According to the contract | Market price | |||
| Wuxi Industry Group | The first largest shareholder of the Company | Others | Provide technology service | Fair market pricing | Market price | 37.48 | 0 | Y | According to the contract | Market price | |||
| Lezhuo Bowei | Associated enterprise | Others | Receivable kinetic energy fees | Fair market pricing | Market price | 88.88 | 200 | N | According to the contract | Market price | 2024-04-16 | Notice No.: 2024-011 |
| Lezhuo Bowei | Associated enterprise | Others | Receivable lease fees | Fair market pricing | Market price | 154.87 | 400 | N | According to the contract | Market price | |||
| Autolink | Associated enterprise | Others | Payable lease fee | Fair market pricing | Market price | 0 | 600 | N | According to the contract | Market price | |||
| Urban public delivery Holding | Holding Company of Wuxi Industry Group | Others | Procurement of cafeteria ingredients | Fair market pricing | Market price | 108.65 | 0 | Y | According to the contract | Market price | |||
| WFEC | Joint venture of WFLD | Others | Provide technical services | Fair market pricing | Market price | 24.42 | 100 | N | According to the contract | Market price | 2024-04-16 | Notice No.: 2024-011 | |
| WFEC | Joint venture of WFLD | Others | Receivable lease fees | Fair market pricing | Market price | 100.33 | 300 | N | According to the contract | Market price | |||
| WFEC | Joint venture of WFLD | Others | Payable technical service fees | Fair market pricing | Market price | 25.84 | 0 | Y | According to the contract | Market price | |||
| WFEC | Joint venture of WFLD | Others | Payable kinetic energy fees | Fair market pricing | Market price | 10.69 | 200 | N | According to the contract | Market price | |||
| Total | -- | -- | 207,120.85 | -- | 623,640 | -- | -- | -- | -- | ||||
| Detail of sales return with major amount involved | Not applicable | ||||||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | The Company expects the total amount of daily related transactions in 2024 to be 6,236.4 million yuan, and the actual total amount of daily related transactions that occurred during the reporting period is 2,071.2085 million yuan, classified as follows: 1. It is expected that the purchase of goods and services from related parties in 2024 will not exceed 1,778 million yuan, and the actual amount incurred during the reporting period is 401.7363 million yuan; 2. It is expected that the sales of goods and services to related parties in 2024 will not exceed 4,423.4 million yuan, and the actual amount incurred during the reporting period is 1,661.2936 million yuan; 3. It is expected that other related transactions with related parties in 2024 will not exceed 35 million yuan, and the actual amount incurred during the reporting period is 8.1786 million yuan. | ||||||||||||
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable | ||||||||||||
2. Related party transactions of asset or acquisition and sold
□ Applicable ? Not applicable
No related party transactions of asset or equity acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable ?Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
?Applicable □ Not applicableIs there any non operating related debt and debt transaction? Yes □NoReceivable debt from related parties
| Related party | Related relationship | Cause of formation | Is there any occupation of non operating funds? | Beginning balance(’0000 yuan) | Increase in current period(’0000 yuan) | Amount received in current period(’0000 yuan) | Interest rate | Interest in current period(’0000 yuan) | Ending balance(’0000 yuan) |
| Hebei Machinery | Company controlled by the elder brother of a Company director/senior executive | Formed due to “platform trade” business | No | -212,548.78 | -212,548.78 | ||||
| Hebei Jinda | Company controlled by Hebei Machinery | 195,847.05 | 195,847.05 | ||||||
| Hebei Deshuang | 143,675.72 | 143,675.72 | |||||||
| Hebei Lanpai | 60,940.49 | 60,940.49 | |||||||
| Hebei Mianzhuo | 47,925.33 | 47,925.33 | |||||||
| Total | 235,839.81 | 235,839.81 | |||||||
| The impact of related debt on the Company's operating results and financial condition | For details on the impact on the Company's operating results and financial condition, please refer to the description of ""Provision for expected credit loss on other receivables formed by “platform trade” business"” | ||||||||
Note1: Hebei Machinery refers to Hebei Machinery Import and Export Co., Ltd., Hebei Jinda refers to Hebei Jinda Import andExport Co., Ltd., Hebei Lanpai refers to Hebei Lanpai Technology Co., Ltd., Hebei Mianzhuo refers to Hebei MianzhuoElectromechanical Equipment Sales Co., Ltd. Hebei Deshuang refers to Hebei Deshuang Trading Co., Ltd.Note2: According to the principle of substance over form, the company did not treat Weifu International Trade's "platform trade"business as a normal trade business, but accounted for it as a fund receipt and payment. Because Hebei Jinda, Hebei Deshuang,Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on the business essence of "platform trade" business,WFTR listed the difference between the "purchase payment" paid by WFTR to Hebei Jinda, Hebei Deshuang, Hebei Lanpai andHebei Mianzhuo based on "platform trade" business and the "sales payment" received from Hebei Machinery 2,358.3981 millionyuan as other receivables. As of June 30, 2024, the Company has made a bad debt provision of 1,448.3589 million yuan for thebalance of other receivables; The bad debt provision balance is calculated by 80.10%, which is the proportion of other receivablesbalance of Hebei Machinery and its controlled companies 2,415.1519 million yuan to other receivables balance of WFTR's"platform trade" business portfolio 2,741.4991 million yuan as of December 31, 2023 multiply the bad debt provision for otheraccounts receivable balances in WFTR’s "platform trade" business portfolio 1,644.0683 million yuan.
5. Contact with the related finance companies
□ Applicable ? Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship andrelated parties
6. Transactions between the finance Company controlled by the Company and related parties
□ Applicable ? Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties.
7. Other material related party transactions
? Applicable □ Not applicableOn April 15, 2024, the 23
rdmeeting of the 10th Board of Directors reviewed and approved the Proposal on Investingin the Establishment of a Partnership Enterprise and Related Transactions. For details, please refer to theannouncement titled Announcement on the Proposed Investment in the Establishment of a Partnership Enterprise andRelated Transactions (Notice No. 2024-020), disclosed by the Company on April 16, 2024. As of the date of this
report, the matter is progressing as planned.On May 14, 2024, the 25
th
meeting of the 10th Board of Directors also reviewed and approved the Proposal forIncreasing Capital in an Associated Company. Details are available in the announcement titled Announcement on theProposed Capital Increase in an Associated Company and Related Transactions (Notice No. 2024-038), disclosed bythe Company on May 15, 2024. As of the date of this report, this matter is progressing as planned.On May 14, 2024, the 25
thmeeting of the 10th Board of Directors reviewed and aproved the Proposal to Invest in aJoint Venture for Intelligent Sensing Business and Related Transactions. Details can be found in the announcementtitled Announcement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and RelatedTransactions (Notice No. 2024-039), disclosed by the Company on May 15, 2024. As of June 27, 2024, the jointventure has completed its business registration and obtained a Business License from the Wuxi EconomicDevelopment Zone Administration. For specific details, please refer to the the announcement titled ProgressAnnouncement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and RelatedTransactions (Announcement No. 2024-046) disclosed by the Company on June 29, 2024For more information on major related party transactions, please refer to the temporary report disclosure website.
| Name of temporary announcement | Disclosure date of temporary announcement | Name of website disclosing temporary announcement |
| the Proposal on Investing in the Establishment of a Partnership Enterprise and Related Transactions | 2024-04-16 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on the Proposed Capital Increase in an Associated Company and Related Transactions | 2024-05-15 | |
| Announcement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and Related Transactions | 2024-05-15 | |
| Progress Announcement on the Proposed Investment in a Joint Venture for Intelligent Sensing Business and Related Transactions | 2024-06-29 |
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable ? Not applicable
No trusteeship occurred during the reporting period
(2) Contracting
□ Applicable ? Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable ? Not applicable
No leasing occurred during the reporting period
2. Material guarantees
? Applicable □ Not applicable
In ten thousand yuan
| The Company’ guarantee towards subsidiaries | |||||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral | Counter Guarantee | Guarantee period | Fulfilled or not | Guaranteed by related parties or not | |||
| VHWX | 2022-12-09 | 1,000 | 2022-12-12 | 1,000 | Joint liability guarantee | NA | NA | From the date of execution of the main contract up to the two years from the date of expiry of the performance period of the obligations under the main contract or December 30, 2026 (inclusive, whichever is the earlier) | No | No | |||
| VHIO | 2023-04-28 | 55,000 | 2023-07-13 | 7,784 | Joint liability guarantee | NA | NA | Three years from the date of receipt of the guarantee by the Italian tax bureau | No | No | |||
| WFAS | 2023-04-28 | 4,000 | 2023-08-26 | 462 | Joint liability guarantee | NA | NA | To be individually calculated according to each financing provided by the creditor to the debtor under the main contract, for each financing, the guarantee period is three years from the expiration date of the debt performance period under that financing | No | No | |||
| VHIO | 2023-04-28 | 55,000 | 2023-11-16 | 5,309 | Joint liability guarantee | NA | NA | Six months from the maturity date of each guaranteed debt, but no later than June 30, 2028 | No | No | |||
| VHIO | 2023-04-28 | 55,000 | 2024-04-09 | 30,706 | Joint liability guarantee | NA | NA | Two years since VHIO completed all supplier obligations or satisfied the requirements for indicators in the guarantee letter Indicator requirements | No | No | |||
| Approved total guaranteed amount towards the subsidiaries within the reporting period (B1) | 41,200 | Total actual amount occurred towards subsidiaries within the reporting period (B2) | 30,706 | ||||||||||
| Approved total guaranteed amount towards the subsidiaries at the year end (B3) | 86,461 | Total actual guarantee balance towards subsidiaries at the year end (B4) | 45,261 | ||||||||||
| Total amount of the Company’s guarantee(total of the top three) | |||||||||||||
| Approved total amount guaranteed within the reporting period (A1+B1+C1) | 41,200 | Total actual guaranteed amount occurred within the reporting period (A2+B2+C2) | 30,706 | ||||||||||
| Approved total amount guaranteed at the year end (A3+B3+C3) | 86,461 | Actual total guarantee balance at the year end (A4+B4+C4) | 45,261 | ||||||||||
| Proportion of actual total guaranteed amount (A4+B4+C4) to net asset | 2.34% |
| Wherein: | |
| Explanation of situations where there is a guarantee liability or evidence indicating the possibility of assuming joint and several liability for the unexpired guarantee contract during the reporting period (if any) | NA |
| Explanation of providing external guarantees in violation of prescribed procedures (if any) | NA |
Specific description for using the guarantee by complex method: Nil
3. Trusted cash asset management
? Applicable □ Not applicable
In ten thousand yuan
| Type | Capital sources | Amount occurred | Outstanding balance | Overdue amount | Amount with impairment accrual for the overdue financial products which has not been recovered |
| Financing products of banks | Own funds | 84,350 | 7,700 | 0 | 0 |
| Financial products of securities firms | Own funds | 42,000 | 42,000 | 0 | 0 |
| Trust financial products | Own funds | 32,078.66 | 14,078.66 | 0 | 0 |
| Other type | Own funds | 92,711.65 | 76,979.46 | 0 | 0 |
| Total | 251,140.31 | 140,758.12 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity? Applicable □ Not applicable
In ten thousand yuan
| Trustee institution r name | Trustee type | Type | Amount | Source of funds | Start date | End date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gain/loss in period | Actual collected gain/loss in period | Amount of reserve for devaluation of withdrawing (if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| Bank | Bank | Guaranteed floating income | 68,000 | Own fund | 2024-01-29 | 2024-09-24 | Bank wealth management products | Reference annual rate of return by the contract | 2.25%-2.9% | 277.78 | 473.69 | Collected according to the contract | 0 | Yes | Yes | 2024-04-16(Notice No.:2024-013) |
| Bank | Bank | Non-guaranteed floating income | 42,450 | Own fund | 2024-01-04 | 2024-06-26 | Bank wealth management products | Reference annual rate of return by the contract | 2%-2.5% | 168.24 | 253.15 | Collected according to the contract | 0 | Yes | Yes | |
| Securities | Securities | Non-guaranteed floating income | Own fund | 187.5 | Collected according to the contract | 0 | Yes | Yes | ||||||||
| Trust | Trust | Non-guaranteed floating income | Own fund | 341.48 | Collected according to the contract | 0 | Yes | Yes | ||||||||
| Other | Other professional financial institutions | Non-guaranteed floating income | Own fund | 2,529.21 | Reference annual rate of return by the contract | 0 | Yes | Yes | ||||||||
| Total | 110,450 | 446.02 | 3,785.03 | 0 | ||||||||||||
It is expected that the principal of entrusted financial management fails to recover or there are other situations leading to
impairment in entrusted financial management
□ Applicable ? Not applicable
4. Other significant contract
□ Applicable ? Not applicable
The Company had no other significant contract in the reporting period.XIII. Explanation on other material matters
□Applicable ? Not applicable
The Company has no explanation on other material matters.XIV. Material matters of subsidiary of the Company
□ Applicable ? Not applicable
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in share capital
1. Changes in share capital
In Share
| Before the Change | Change during the reporting period(+/-)) | After the change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 5,651,230 | 0.56% | -4,845,055 | -4,845,050 | 806,175 | 0.08% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 5,651,230 | 0.56% | -4,845,055 | -4,845,055 | 806,175 | 0.08% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 5,651,230 | 0.56% | -4,845,055 | -4,845,055 | 806,175 | 0.08% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 996,511,563 | 99.44% | -331,445 | -331,445 | 996,180,118 | 99.92% | |||
| 1. RMB ordinary shares | 824,131,563 | 82.24% | -331,445 | -331,445 | 823,800,118 | 82.63% | |||
| 2. Domestically listed foreign shares | 172,380,000 | 17.20% | 172,380,000 | 17.29% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 1,002,162,793 | 100.00% | -5,176,500 | -5,176,500 | 996,986,293 | 100.00% |
Reasons for share changed?Applicable □Not applicable
1. During the reporting period, the Company repurchased and canceled 5,176,500 shares of 2020 restricted stock that had beengranted but not unlocked, resulting in a change in restricted shares;
2. During the reporting period, titles of some directors, supervisors, and senior executives of the Company were adjusted, and thelock-up shares held by senior executives changed, resulting in changes in unrestricted shares.Approval status of share changes?Applicable □Not applicable
1. On April 15, 2024, the Company held the 23
rd meeting of the 10
thsession of Board of Directors and approved the Proposal onBuy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided tobuy back and cancel a total of 5,176,500 restricted stocks that have been granted to 535 incentive recipients but did not meet theconditions for lifting restrictions. As of June 7, 2024, the Company has completed the buy-back and cancellation procedures forthe above-mentioned shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2. On April 15, 2024, the Company held the 23
rd
meeting of the 10
th
session of board of directors and approved the Proposal on theElection of Non-independent Director Candidates for the Board of Directors. On May 17, 2024, the Company held its 2023 annualshareholders' meeting and approved the proposal.Ownership transfer of share changed
□Applicable ?Not applicable
Progress of the implementation of buyback share
□Applicable ?Not applicable
Progress of the implementation of reducing buyback shares by means of centralized bidding
□Applicable ?Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net asset per share attributable to commonshareholders of Company in latest year and period
□ Applicable ? Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable ? Not applicable
2. Changes of restricted stocks
?Applicable □Not applicable
In Share
| Shareholders | Opening restricted shares | Restricted shares increased in the Period | Shares released in Period | Ending restricted shares | Restricted reasons | Date for released |
| Wang Xiaodong (Leave office) | 225,586 | 120,000 | 75,195 | 180,781 | Lock-up shares held by senior executives | June 7, 2024 |
| Xu Yunfeng | 193,500 | 105,000 | 0 | 88,500 | Lock-up shares held by senior executives | June 7, 2024 |
| Ou Jianbin (Leave office) | 154,500 | 84,000 | 51,500 | 122,000 | Lock-up shares held by senior executives | June 7, 2024 |
| Rong bin | 147,000 | 84,000 | 0 | 63,000 | Lock-up shares held by senior executives | June 7, 2024 |
| Liu Jinjun | 147,000 | 84,000 | 0 | 63,000 | Lock-up shares held by senior executives | June 7, 2024 |
| Li Gang | 147,000 | 84,000 | 0 | 63,000 | Lock-up shares held by senior executives | June 7, 2024 |
| Xu Sheng | 147,000 | 84,000 | 0 | 63,000 | Lock-up shares held by senior executives | June 7, 2024 |
| Miao Yuming (Leave office) | 91,500 | 0 | 22,500 | 114,000 | Lock-up shares held by senior executives | -- |
| Middle management | 4,531,500 | 4,531,500 | 0 | 0 | Restricted Stock Incentive Plan 2020 | June 7, 2024 |
| Total | 5,784,586 | 5,176,500 | 149,195 | 757,281 | -- | -- |
Note: In the table above, shares released in the reporting period is the number that the Company repurchases and cancels the sharesit has been granted but has not yet lifted the restrictions on sale in the reporting period.
II. Securities issuance and listing
□ Applicable ? Not applicable
III. Number and shareholding situation of Company shareholders
| Total common stock shareholders at end of the reporting period | 62,203 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) | 0 | ||||||||
| Particulars about shares held above 5% by shareholders or top 10 shareholders | |||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total of common shares held at the end of reporting period | Changes in reporting period | Number of restricted shares held | Amount of unrestricted shares held | Information of sharespledged, tagged or frozen | ||||
| State of share | Amount | ||||||||||
| Wuxi Industry Development Group Co., Ltd. | State-owned corporate | 20.47% | 204,059,398 | 0 | 0 | 204,059,398 | N/A | 0 | |||
| Robert Bosch Co., Ltd | Foreign corporate | 14.33% | 142,841,400 | 0 | 0 | 142,841,400 | N/A | 0 | |||
| Hong Kong Securities Clearing Company | Foreign corporate | 2.90% | 28,944,043 | 11,241,722 | 0 | 28,944,043 | N/A | 0 | |||
| CCB Life Insurance Co., Ltd. - Traditional Insurance | Other | 1.24% | 12,359,918 | 12,359,918 | 0 | 12,359,918 | N/A | 0 | |||
| NSSF-413 | Other | 1.06% | 10,590,000 | 360,000 | 0 | 10,590,000 | N/A | 0 | |||
| Dongwu Securities Co., Ltd | State-owned corporate | 0.80% | 7,999,900 | 7,999,900 | 0 | 7,999,900 | N/A | 0 | ||
| FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | Foreign corporate | 0.80% | 7,955,075 | 744,689 | 0 | 7,955,075 | N/A | 0 | ||
| Guolian An Fund - China Pacific Life Insurance Co., Ltd. - Dividend Insurance - Guolian An Fund - China Pacific Life Equity Relative Yield (Guaranteed Dividend) Single Asset Management Plan | Other | 0.71% | 7,123,179 | 235,200 | 0 | 7,123,179 | N/A | 0 | ||
| Basic Pension Insurance Fund- 1003 | Other | 0.67% | 6,698,993 | -942,700 | 0 | 6,698,993 | N/A | 0 | ||
| Xie Zuogang | Domestic natural person | 0.51% | 5,132,967 | 0 | 0 | 5,132,967 | N/A | 0 | ||
| Strategy investor or general legal person becoming the top 10 shareholders by placing new shares (if applicable) | Nil | |||||||||
| Explanation on associated relationship concerted action among the aforesaid shareholders | Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the Company, and other shareholders; and they do not belong to the persons acting in concert regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. | |||||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Nil | |||||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) | As of June 30, 2024, the repurchase special securities account of Weifu High-Technology Group Co., Ltd has 25,000,000 shares of ordinary A-Share, hereby stated that in according withe relevant requirement, they are not included in the top 10 shareholders of the Company. | |||||||||
| Particular about top 10 shareholders with unrestricted shares held | ||||||||||
| Shareholders’ name | Amount of unrestricted shares held at Period-end | Shares held | ||||||||
| Type | Amount | |||||||||
| Wuxi Industry Development Group Co., Ltd. | 204,059,398 | RMB common shares | 204,059,398 | |||||||
| Robert Bosch Co., Ltd | 142,841,400 | RMB common shares | 115,260,600 | |||||||
| Domestically listed foreign shares | 27,580,800 | |||||||||
| Hong Kong Securities Clearing Company | 28,944,043 | RMB common shares | 28,944,043 | |||||||
| CCB Life Insurance Co., Ltd. - Traditional Insurance | 12,359,918 | RMB common shares | 12,359,918 | |||||||
| NSSF-413 | 10,590,000 | RMB common shares | 10,590,000 | |||||||
| Dongwu Securities Co., Ltd | 7,999,900 | RMB common shares | 7,999,900 | |||||||
| FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | 7,955,075 | Domestically listed foreign shares | 7,955,075 | |||||||
| Guolian An Fund - China Pacific Life Insurance Co., Ltd. - Dividend Insurance - Guolian An Fund - China Pacific Life Equity Relative Yield (Guaranteed Dividend) Single Asset Management Plan | 7,123,179 | RMB common shares | 7,123,179 | |||||||
| Basic Pension Insurance Fund- 1003 | 6,698,993 | RMB common shares | 6,698,993 | |||||||
| Xie Zuogang | 5,132,967 | Domestically listed foreign shares | 5,132,967 | |||||||
| Explanation on associated relationship or consistent actors within the top 10 restricted shareholders and between top 10 unrestricted shareholders and top 10 shareholders | Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the Company, and other shareholders; and they do not belong to the persons acting in concert 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) | Nil |
Shareholders holding more than 5% of the shares, top 10 shareholders or top ten unrestricted shareholders participating in thelending of shares through refinancing business
□Applicable ? Not applicable
Top 10 shareholders or top ten unrestricted shareholders participating in the lending/returning of shares through refinancingbusiness
□Applicable ? Not applicable
Did top ten common shareholders or top ten unrestricted shareholders have agreed repurchase dealing in the reporting period?
□ Yes ? No
The top ten common shareholders or top ten unrestricted shareholders didn’t have agreed repurchase dealing in the reportingperiod.
IV. Changes in shareholding of directors, supervisors, and senior management?Applicable □Not applicable
| Name | Title | Working status | Number of shares held at period-begin (Share) | Number of shares increased in reporting period (Share) | Number of shares decreased in reporting period (Share) | Number of shares held at period-end (Share) | Number of restricted shares granted at period-begin(Share) | Number of restricted shares granted in reporting period (Share) | Number of restricted shares granted at period-end(Share) |
| Xu Yunfeng | Vice Chairman and General Manager | Currently in office | 258,000 | 0 | 105,000 | 153,000 | 105,000 | 0 | 0 |
| Xu Sheng | Deputy General Manager | Currently in office | 196,000 | 0 | 84,000 | 112,000 | 84,000 | 0 | 0 |
| Rongbin | Deputy General Manager | Currently in office | 196,000 | 0 | 84,000 | 112,000 | 84,000 | 0 | 0 |
| Liu Jinjun | Deputy General Manager and Secretary of the Board of Directors | Currently in office | 196,000 | 0 | 84,000 | 112,000 | 84,000 | 0 | 0 |
| Li Gang | Chief engineer | Currently in office | 196,000 | 0 | 84,000 | 112,000 | 84,000 | 0 | 0 |
| Wang Xiaodong | Chairman of board | Leave office | 300,781 | 0 | 120,000 | 180,781 | 120,000 | 0 | 0 |
| Ou Jianbin | Executive Vice General Manager and Financial Director | Leave office | 206,000 | 0 | 84,000 | 122,000 | 84,000 | 0 | 0 |
| Miao Yuming | Deputy General Manager | Leave office | 122,000 | 30,000 | 38,000 | 114,000 | 0 | 0 | 0 |
| Total | -- | -- | 1,670,781 | 30,000 | 683,000 | 1,017,781 | 645,000 | 0 | 0 |
V. Changes of controlling shareholders or actual controller in the reporting periodChanges of controlling shareholders in the reporting period
□ Applicable ? Not applicable
The Company had no changes of controlling shareholders in the reporting periodChanges of actual controller in the reporting period
□ Applicable ? Not applicable
The Company had no changes of actual controller in the reporting period
Section VIII. Preferred Stock
□ Applicable ? Not applicable
The Company had no preferred stock in the reporting period.
Section IX. Corporate Bonds
□ Applicable ? Not applicable
Section X. Financial ReportI. Audit report
Whether the semi annual report is audited
□Yes ?No
The Company's semi- annual financial report has not been audited
II. Financial StatementStatement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co., Ltd.
Jun. 30, 2024
In RMB
| Item | June 30, 2024 | January 1, 2024 |
| Current asset: | ||
| Monetary fund | 2,725,960,523.49 | 2,274,771,699.14 |
| Settlement provision | ||
| Capital lent | ||
| Trading financial asset | 1,431,717,057.05 | 2,391,487,144.96 |
| Derivative financial asset | ||
| Note receivable | 111,953,406.82 | 144,976,174.84 |
| Account receivable | 3,712,958,646.89 | 3,857,539,958.20 |
| Receivable financing | 1,861,606,949.90 | 1,661,749,949.46 |
| Account paid in advance | 79,255,761.11 | 76,202,271.16 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 1,795,554,563.56 | 919,684,126.81 |
| Including: Interest receivable | ||
| Dividend receivable | 872,701,558.93 | |
| Buying back the sales of financial asset | ||
| Inventory | 1,891,829,597.61 | 2,068,533,030.94 |
| Including: Data resource | ||
| Contract asset | ||
| Asset held for sale | ||
| Non-current asset due within one year | ||
| Other current asset | 238,309,118.47 | 325,909,383.11 |
| Total current asset | 13,849,145,624.90 | 13,720,853,738.62 |
| Non-current asset: |
| Loans and payment on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 5,894,271,112.10 | 5,947,633,507.07 |
| Investment in other equity instrument | 677,790,690.00 | 677,790,690.00 |
| Other non-current financial asset | 669,600,925.15 | 804,350,120.06 |
| Investment real estate | 45,905,888.45 | 46,926,716.49 |
| Fixed asset | 3,958,946,658.33 | 3,969,574,102.87 |
| Construction in progress | 682,829,406.56 | 564,605,931.90 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use asset | 45,893,971.65 | 48,832,472.85 |
| Intangible asset | 502,043,226.41 | 484,834,882.53 |
| Including: Data resource | ||
| Expense on research and development | ||
| Including: Data resource | ||
| Goodwill | 118,827,593.37 | 122,316,819.20 |
| Long-term expense to be apportioned | 20,925,320.48 | 24,714,632.10 |
| Deferred income tax asset | 319,940,864.76 | 311,912,955.07 |
| Other non-current asset | 1,078,844,006.81 | 1,356,741,223.05 |
| Total non-current asset | 14,015,819,664.07 | 14,360,234,053.19 |
| Total asset | 27,864,965,288.97 | 28,081,087,791.81 |
| Current liability: | ||
| Short-term loan | 367,616,899.38 | 838,889,557.51 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 2,156,179,899.55 | 1,759,062,642.60 |
| Account payable | 3,351,779,795.80 | 3,668,850,423.29 |
| Account received in advance | 485,401.22 | 2,911,439.65 |
| Contractual liability | 81,968,819.02 | 77,686,881.24 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 220,761,785.27 | 334,810,352.56 |
| Tax payable | 66,628,401.45 | 56,581,082.49 |
| Other account payable | 387,892,303.03 | 108,893,486.63 |
| Including: Interest payable | ||
| Dividend payable | 329,472,281.60 | |
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liability due within one year | 214,202,463.35 | 38,084,321.10 |
| Other current liability | 299,883,882.27 | 257,139,908.60 |
| Total current liability | 7,147,399,650.34 | 7,142,910,095.67 |
| Non-current liability | ||
| Insurance contract reserve | ||
| Long-term loan | 100,000,000.00 | 299,800,000.00 |
| Bond payable | ||
| Including: Preferred stock | ||
| Perpetual capital security | ||
| Lease liability | 34,393,469.46 | 37,733,196.51 |
| Long-term account payable | 28,035,082.11 | 28,035,082.11 |
| Long-term wage payable | 128,526,633.44 | 129,844,482.80 |
| Accrued liability | 26,746,780.27 | 38,016,428.52 |
| Deferred income | 167,835,493.00 | 188,773,622.29 |
| Deferred income tax liability | 33,988,775.36 | 37,752,122.87 |
| Other non-current liability | ||
| Total non-current liability | 519,526,233.64 | 759,954,935.10 |
| Total liability | 7,666,925,883.98 | 7,902,865,030.77 |
| Owner’s equity: | ||
| Share capital | 996,986,293.00 | 1,002,162,793.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital security | ||
| Capital reserve | 3,250,366,843.27 | 3,308,170,140.96 |
| Less: inventory share | 469,722,092.24 | 533,289,512.24 |
| Other comprehensive income | 32,287,259.21 | 54,156,915.97 |
| Reasonable reserve | 5,891,265.97 | 3,641,439.97 |
| Surplus public reserve | 510,100,496.00 | 510,100,496.00 |
| Provision of general risk | ||
| Retained profit | 15,037,305,375.02 | 15,054,950,398.12 |
| Total owner’ s equity attributable to parent Company | 19,363,215,440.23 | 19,399,892,671.78 |
| Minority interest | 834,823,964.76 | 778,330,089.26 |
| Total owner’ s equity | 20,198,039,404.99 | 20,178,222,761.04 |
| Total liability and owner’ s equity | 27,864,965,288.97 | 28,081,087,791.81 |
Legal representative: Yin ZhenyuanPerson in charge of accounting works: Feng ZhimingPerson in charge of accounting institute: Wu Junfei
2. Balance sheet of parent Company
In RMB
| Item | June 30, 2024 | January 1, 2024 |
| Current asset: | ||
| Monetary fund | 577,322,355.62 | 714,826,120.43 |
| Trading financial asset | 1,354,701,933.76 | 2,251,060,973.85 |
| Derivative financial asset | ||
| Note receivable | 22,376,432.66 | 23,523,055.70 |
| Account receivable | 1,433,642,663.04 | 1,384,059,380.88 |
| Receivable financing | 294,458,850.37 | 227,811,949.87 |
| Account paid in advance | 47,826,509.58 | 45,875,061.25 |
| Other account receivable | 2,221,321,070.80 | 1,370,649,392.28 |
| Including: Interest receivable | 3,632,064.24 | 842,323.12 |
| Dividend receivable | 775,914,958.91 | |
| Inventory | 507,131,113.79 | 549,696,080.27 |
| Including: Data resource | ||
| Contract asset | ||
| Asset held for sale | ||
| Non-current asset maturing within one year | ||
| Other current asset | 11,667,975.03 | 11,054,042.33 |
| Total current asset | 6,470,448,904.65 | 6,578,556,056.86 |
| Non-current asset: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivable | ||
| Long-term equity investment | 7,950,444,088.24 | 8,008,012,424.29 |
| Investment in other equity instrument | 601,850,690.00 | 601,850,690.00 |
| Other non-current financial asset | 669,600,925.15 | 804,350,120.06 |
| Investment real estate | 33,888,032.53 | 34,453,448.06 |
| Fixed asset | 2,377,331,503.57 | 2,376,023,503.55 |
| Construction in progress | 311,061,752.14 | 218,670,126.54 |
| Productive biological asset | ||
| Oil and natural gas asset | ||
| Right-of-use asset | 4,574,776.53 | 4,290,695.37 |
| Intangible asset | 254,578,699.18 | 220,397,330.28 |
| Including: Data resource | ||
| Research and development cost | ||
| Including: Data resource | ||
| Goodwill | ||
| Long-term deferred expense | 2,479,839.68 | 3,759,490.67 |
| Deferred income tax asset | 144,755,023.36 | 109,441,564.66 |
| Other non-current asset | 642,640,242.20 | 731,758,973.92 |
| Total non-current asset | 12,993,205,572.58 | 13,113,008,367.40 |
| Total asset | 19,463,654,477.23 | 19,691,564,424.26 |
| Current liability | ||
| Short-term borrowing | 480,490,722.23 | |
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 362,408,253.84 | 365,959,174.48 |
| Account payable | 1,006,186,310.21 | 1,166,435,681.25 |
| Account received in advance | ||
| Contract liability | 13,749,547.46 | 8,548,593.06 |
| Wage payable | 98,667,812.63 | 168,228,976.90 |
| Tax payable | 12,848,801.29 | 5,327,449.07 |
| Other account payable | 1,113,572,301.89 | 216,435,787.01 |
| Including: Interest payable | 1,757,583.32 | 1,123,734.04 |
| Dividend payable | 329,472,281.60 | |
| Liability held for sale | ||
| Non-current liability due within one year | 203,525,865.26 | 28,000,984.47 |
| Other current liability | 15,860,654.41 | 38,294,705.54 |
| Total current liability | 2,826,819,546.99 | 2,477,722,074.01 |
| Non-current liability: | ||
| Long-term loan | 100,000,000.00 | 299,800,000.00 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual capital security | ||
| Lease liability | 1,716,868.37 | 1,836,800.62 |
| Long-term account payable | ||
| Long term employee compensation payable | 95,678,717.83 | 95,678,717.83 |
| Accrued liability | 7,290,089.00 | 10,709,925.00 |
| Deferred income | 142,462,629.02 | 160,462,135.18 |
| Deferred income tax liability | ||
| Other non-current liability | ||
| Total non-current liability | 347,148,304.22 | 568,487,578.63 |
| Total liability | 3,173,967,851.21 | 3,046,209,652.64 |
| Owners’ equity: | ||
| Share capital | 996,986,293.00 | 1,002,162,793.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital security | ||
| Capital reserve | 3,353,666,774.11 | 3,412,506,010.91 |
| Less: Inventory share | 469,722,092.24 | 533,289,512.24 |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 510,100,496.00 | 510,100,496.00 |
| Retained profit | 11,898,655,155.15 | 12,253,874,983.95 |
| Total owner’s equity | 16,289,686,626.02 | 16,645,354,771.62 |
| Total liability and owner’s equity | 19,463,654,477.23 | 19,691,564,424.26 |
3. Consolidated profit statement
In RMB
| Item | 2024 semi-annual | 2023 semi-annual |
| I. Total operating income | 5,694,233,552.72 | 6,129,649,047.40 |
| Including: Operating income | 5,694,233,552.72 | 6,129,649,047.40 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 5,403,425,728.45 | 5,988,688,585.81 |
| Including: Operating cost | 4,620,552,753.54 | 5,163,871,731.26 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 28,260,194.79 | 32,240,422.99 |
| Sales expense | 113,227,996.84 | 103,031,481.40 |
| Administrative expense | 330,939,659.31 | 299,195,729.59 |
| R&D expense | 302,233,285.34 | 351,887,038.12 |
| Financial expense | 8,211,838.63 | 38,462,182.45 |
| Including: Interest expenses | 13,772,229.94 | 65,616,425.64 |
| Interest income | 18,112,595.69 | 15,706,416.56 |
| Add: other income | 130,886,049.11 | 40,979,593.51 |
| Investment income (Loss is listed with “-”) | 769,668,621.04 | 811,406,633.49 |
| Including: Investment income on affiliated Company and joint venture | 734,287,171.95 | 742,783,514.37 |
| The termination of income recognition for financial asset measured by amortized cost(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | -105,956,110.61 | -18,069,553.29 |
| Loss of credit impairment (Loss is listed with “-”) | 3,490,635.46 | -846,725.76 |
| Loss of devaluation of asset (Loss is listed with “-”) | -66,803,279.10 | -90,263,537.00 |
| Income from asset disposal (Loss is listed with “-”) | 5,859,201.49 | 125,530,905.04 |
| III. Operating profit (Loss is listed with “-”) | 1,027,952,941.66 | 1,009,697,777.58 |
| Add: Non-operating income | 700,418.67 | 2,707,696.00 |
| Less: Non-operating expense | 3,361,815.35 | 758,381.69 |
| IV. Total profit (Loss is listed with “-”) | 1,025,291,544.98 | 1,011,647,091.89 |
| Less: Income tax expense | 23,703,720.56 | 29,332,279.74 |
| V. Net profit (Net loss is listed with “-”) | 1,001,587,824.42 | 982,314,812.15 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with “-”) | 1,001,587,824.42 | 982,314,812.15 |
| 2.termination of net profit (net loss listed with “-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent Company | 954,341,269.90 | 948,760,859.55 |
| 2.Minority shareholders’ gain and loss | 47,246,554.52 | 33,553,952.60 |
| VI. Net after-tax of other comprehensive income | -21,869,656.76 | 61,239,561.19 |
| Net after-tax of other comprehensive income attributable to owners of parent Company | -21,869,656.76 | 61,239,561.19 |
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | 451,530.88 | -305,484.37 |
| 1.Changes of the defined benefit plans that re-measured | 451,530.88 | -305,484.37 |
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5.Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | -22,321,187.64 | 61,545,045.56 |
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial asset re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve |
| 6.Translation differences arising on translation of foreign currency financial statements | -22,321,187.64 | 61,545,045.56 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 979,718,167.66 | 1,043,554,373.34 |
| Total comprehensive income attributable to owners of parent Company | 932,471,613.14 | 1,010,000,420.74 |
| Total comprehensive income attributable to minority shareholders | 47,246,554.52 | 33,553,952.60 |
| VIII. Earning per share: | ||
| (i) Basic earning per share | 0.98 | 0.98 |
| (ii) Diluted earning per share | 0.98 | 0.98 |
Legal representative: Yin ZhenyuanPerson in charge of accounting works: Feng ZhimingPerson in charge of accounting institute: Wu Junfei
4. Profit statement of parent Company
In RMB
| Item | 2024 semi-annual | 2023 semi-annual |
| I. Operating income | 1,647,889,326.24 | 1,999,983,446.71 |
| Less: Operating cost | 1,321,768,571.59 | 1,582,800,180.15 |
| Tax and surcharge | 10,090,110.47 | 12,898,023.37 |
| Sales expense | 11,789,414.41 | 14,804,263.68 |
| Administration expense | 161,566,130.87 | 151,432,225.43 |
| R&D expenses | 119,109,060.22 | 121,018,486.34 |
| Financial expense | 4,824,902.69 | -30,173,931.83 |
| Including: interest expenses | 9,277,216.36 | 46,417,119.10 |
| Interest income | 12,050,589.75 | 71,778,851.32 |
| Add: other income | 62,105,684.03 | 29,302,719.53 |
| Investment income (Loss is listed with “-”) | 638,461,133.94 | 711,673,709.71 |
| Including: Investment income on affiliated Company and joint venture | 603,770,972.68 | 644,975,916.19 |
| The termination of income recognition for financial asset measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | -105,971,233.90 | -18,284,414.84 |
| Loss of credit impairment (Loss is listed with “-”) | 2,009,138.93 | -782,758.06 |
| Loss of devaluation of asset (Loss is listed with “-”) | -35,029,533.34 | -37,325,504.75 |
| Income on disposal of asset (Loss is listed with “-”) | 1,029,050.22 | 3,183,872.63 |
| II. Operating profit (Loss is listed with “-”) | 581,345,375.87 | 834,971,823.79 |
| Add: Non-operating income | 437,637.73 | 20,798.16 |
| Less: Non-operating expense | 330,008.10 | 452,082.96 |
| III. Total profit (Loss is listed with “-”) | 581,453,005.50 | 834,540,538.99 |
| Less: Income tax | -35,313,458.70 | 20,717,315.23 |
| IV. Net profit (Net loss is listed with “-”) | 616,766,464.20 | 813,823,223.76 |
| (i)continuous operating net profit (net loss listed with ‘-”) | 616,766,464.20 | 813,823,223.76 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss |
5. Consolidated cash flow statement
In RMB
| Item | 2024 semi-annual | 2023 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 6,823,095,167.50 | 7,220,274,822.77 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 67,238,993.27 | 290,682,518.69 |
| Other cash received concerning operating activities | 54,420,149.24 | 350,434,811.67 |
| Subtotal of cash inflow arising from operating activities | 6,944,754,310.01 | 7,861,392,153.13 |
| Cash paid for purchasing commodities and receiving labor service | 4,721,822,344.53 | 5,293,150,104.57 |
| Net increase of customer loan and advance | ||
| Net increase of deposit in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 876,817,470.16 | 845,487,116.19 |
| Tax paid | 125,654,220.31 | 223,362,710.57 |
1.Changes of the defined benefit plans that re-measured
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial asset re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 616,766,464.20 | 813,823,223.76 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
| Other cash paid concerning operating activities | 332,567,957.64 | 409,430,984.38 |
| Subtotal of cash outflow arising from operating activities | 6,056,861,992.64 | 6,771,430,915.71 |
| Net cash flow arising from operating activities | 887,892,317.37 | 1,089,961,237.42 |
| II. Cash flow arising from investing activities: | ||
| Cash received from recovering investment | 2,269,199,889.99 | 1,792,373,483.22 |
| Cash received from investment income | 91,204,017.80 | 227,184,527.61 |
| Net cash received from disposal of fixed, intangible and other long-term asset | 13,423,502.19 | 130,808,256.39 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Subtotal of cash inflow from investing activities | 2,373,827,409.98 | 2,150,366,267.22 |
| Cash paid for purchasing fixed, intangible and other long-term asset | 509,948,929.69 | 521,593,700.42 |
| Cash paid for investment | 1,688,939,156.51 | 1,384,532,499.32 |
| Net increase of mortgaged loan | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 2,198,888,086.20 | 1,906,126,199.74 |
| Net cash flows arising from investing activities | 174,939,323.78 | 244,240,067.48 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 9,000,000.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 9,000,000.00 | |
| Cash received from loans | 211,155,360.59 | 2,472,142,881.63 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 220,155,360.59 | 2,472,142,881.63 |
| Cash paid for settling debt | 730,405,067.04 | 3,430,505,040.97 |
| Cash paid for dividend and profit distributing or interest paying | 655,405,251.11 | 150,449,335.07 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 72,903,193.84 | 144,576,715.88 |
| Subtotal of cash outflow from financing activities | 1,458,713,511.99 | 3,725,531,091.92 |
| Net cash flow arising from financing activities | -1,238,558,151.40 | -1,253,388,210.29 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -11,959,144.77 | 29,533,974.54 |
| V. Net increase of cash and cash equivalents | -187,685,655.02 | 110,347,069.15 |
| Add: Balance of cash and cash equivalents at the period -begin | 2,061,986,694.41 | 2,277,117,604.82 |
| VI. Balance of cash and cash equivalents at the period -end | 1,874,301,039.39 | 2,387,464,673.97 |
6. Cash flow statement of parent Company
In RMB
| Item | 2024 semi-annual | 2023 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 1,836,580,357.79 | 1,931,059,388.32 |
| Write-back of tax received | 125,050,063.31 | |
| Other cash received concerning operating activities | 35,060,914.24 | 28,151,813.75 |
| Subtotal of cash inflow arising from operating activities | 1,871,641,272.03 | 2,084,261,265.38 |
| Cash paid for purchasing commodities and receiving labor service | 1,478,289,500.53 | 1,283,789,999.36 |
| Cash paid to/for staff and workers | 376,267,474.70 | 371,210,630.31 |
| Tax paid | 10,258,978.32 | 76,834,144.17 |
| Other cash paid concerning operating activities | 86,820,283.60 | 85,355,061.82 |
| Subtotal of cash outflow arising from operating activities | 1,951,636,237.15 | 1,817,189,835.66 |
| Net cash flow arising from operating activities | -79,994,965.12 | 267,071,429.72 |
| II. Cash flow arising from investing activities: | ||
| Cash received from recovering investment | 1,500,199,889.99 | 1,285,673,483.22 |
| Cash received from investment income | 38,644,329.54 | 76,692,639.68 |
| Net cash received from disposal of fixed, intangible and other long-term asset | 3,150,219.06 | 5,120,859.04 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 101,382,422.25 | 266,890,277.63 |
| Subtotal of cash inflow from investing activities | 1,643,376,860.84 | 1,634,377,259.57 |
| Cash paid for purchasing fixed, intangible and other long-term asset | 287,840,839.26 | 312,219,496.56 |
| Cash paid for investment | 720,639,156.51 | 740,630,287.05 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 175,051,991.34 | 54,000,000.00 |
| Subtotal of cash outflow from investing activities | 1,183,531,987.11 | 1,106,849,783.61 |
| Net cash flow arising from investing activities | 459,844,873.73 | 527,527,475.96 |
| III. Cash flow arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 1,795,000,000.00 | |
| Other cash received concerning financing activities | 775,000,000.00 | 15,000,000.00 |
| Subtotal of cash inflow from financing activities | 775,000,000.00 | 1,810,000,000.00 |
| Cash paid for settling debts | 504,600,000.00 | 2,026,644,800.00 |
| Cash paid for dividend and profit distributing or interest paying | 651,602,564.76 | 133,911,606.16 |
| Other cash paid concerning financing activities | 222,437,210.84 | 611,812,390.04 |
| Subtotal of cash outflow from financing activities | 1,378,639,775.60 | 2,772,368,796.20 |
| Net cash flows arising from financing activities | -603,639,775.60 | -962,368,796.20 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -3,365,554.33 | 3,103,799.68 |
| V. Net increase of cash and cash equivalents | -227,155,421.32 | -164,666,090.84 |
| Add: Balance of cash and cash equivalents at the period -begin | 713,516,740.43 | 803,410,185.18 |
| VI. Balance of cash and cash equivalents at the period -end | 486,361,319.11 | 638,744,094.34 |
7. Consolidated statement of change in owners’ equity
Current Period
In RMB
| Item | 2024 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interest | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory share | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 1,002,162,793.00 | 3,308,170,140.96 | 533,289,512.24 | 54,156,915.97 | 3,641,439.97 | 510,100,496.00 | 15,054,950,398.12 | 19,399,892,671.78 | 778,330,089.26 | 20,178,222,761.04 | |||||
| Add: Change of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 1,002,162,793.00 | 3,308,170,140.96 | 533,289,512.24 | 54,156,915.97 | 3,641,439.97 | 510,100,496.00 | 15,054,950,398.12 | 19,399,892,671.78 | 778,330,089.26 | 20,178,222,761.04 | |||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -5,176,500.00 | -57,803,297.69 | -63,567,420.00 | -21,869,656.76 | 2,249,826.00 | -17,645,023.10 | -36,677,231.55 | 56,493,875.50 | 19,816,643.95 | ||||||
| (i) Total comprehensive income | -21,869,656.76 | 954,341,269.90 | 932,471,613.14 | 47,246,554.52 | 979,718,167.66 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -5,176,500.00 | -58,390,920.00 | -63,567,420.00 | 9,000,000.00 | 9,000,000.00 | ||||||||||
| 1.Common share invested by shareholders | 9,000,000.00 | 9,000,000.00 | |||||||||||||
| 2.Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into | |||||||||||||||
| owners equity with share-based payment | |||||||||||||||
| 4. Other | -5,176,500.00 | -58,390,920.00 | -63,567,420.00 | ||||||||||||
| (III) Profit distribution | -971,986,293.00 | -971,986,293.00 | -971,986,293.00 | ||||||||||||
| 1. Withdrawal of surplus reserve | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -971,986,293.00 | -971,986,293.00 | -971,986,293.00 | ||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserve conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserve conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4.Carry-over retained earning from the defined benefit plans | |||||||||||||||
| 5.Carry-over retained earning from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | 2,249,826.00 | 2,249,826.00 | 190,612.60 | 2,440,438.60 | |||||||||||
| 1. Withdrawal in the reporting period | 14,355,523.67 | 14,355,523.67 | 1,693,142.61 | 16,048,666.28 |
| 2. Usage in the reporting period | 12,105,697.67 | 12,105,697.67 | 1,502,530.01 | 13,608,227.68 | |||||||||||
| (VI)Others | 587,622.31 | 587,622.31 | 56,708.38 | 644,330.69 | |||||||||||
| IV. Balance at the end of the reporting period | 996,986,293.00 | 3,250,366,843.27 | 469,722,092.24 | 32,287,259.21 | 5,891,265.97 | 510,100,496.00 | 15,037,305,375.02 | 19,363,215,440.23 | 834,823,964.76 | 20,198,039,404.99 |
Last Period
In RMB
| Item | 2023 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory share | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 1,008,603,293.00 | 3,398,368,567.63 | 541,623,002.63 | -911,310.13 | 2,119,800.95 | 510,100,496.00 | 13,320,021,325.90 | 17,696,679,170.72 | 738,027,678.66 | 18,434,706,849.38 | |||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 1,008,603,293.00 | 3,398,368,567.63 | 541,623,002.63 | -911,310.13 | 2,119,800.95 | 510,100,496.00 | 13,320,021,325.90 | 17,696,679,170.72 | 738,027,678.66 | 18,434,706,849.38 | |||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -6,023,500.00 | -63,191,471.79 | -3,212,730.39 | 61,239,561.19 | 1,463,606.80 | 851,002,880.25 | 847,703,806.84 | 38,899,547.24 | 886,603,354.08 | ||||||
| (i) Total comprehensive income | 61,239,561.19 | 948,760,859.55 | 1,010,000,420.74 | 33,553,952.60 | 1,043,554,373.34 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -6,023,500.00 | -63,191,471.79 | -3,212,730.39 | -66,002,241.40 | 5,161,978.57 | -60,840,262.83 | |||||||||
| 1.Common shares invested by shareholders | 5,000,000.00 | 5,000,000.00 | |||||||||||||
| 2. Capital | |||||||||||||||
| invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | 5,361,906.64 | 5,361,906.64 | 160,173.01 | 5,522,079.65 | |||||||||||
| 4. Other | -6,023,500.00 | -68,553,378.43 | -3,212,730.39 | -71,364,148.04 | 1,805.56 | -71,362,342.48 | |||||||||
| (III) Profit distribution | -97,757,979.30 | -97,757,979.30 | -97,757,979.30 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provision | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -97,757,979.30 | -97,757,979.30 | -97,757,979.30 | ||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4.Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5.Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | 1,463,606.80 | 1,463,606.80 | 183,616.07 | 1,647,222.87 |
| 1. Withdrawal in the reporting period | 14,709,266.91 | 14,709,266.91 | 1,646,999.84 | 16,356,266.75 | |||||||||||
| 2. Usage in the reporting period | 13,245,660.11 | 13,245,660.11 | 1,463,383.77 | 14,709,043.88 | |||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the reporting period | 1,002,579,793.00 | 3,335,177,095.84 | 538,410,272.24 | 60,328,251.06 | 3,583,407.75 | 510,100,496.00 | 14,171,024,206.15 | 18,544,382,977.56 | 776,927,225.90 | 19,321,310,203.46 |
8. Statement of changes in owners’ equity of parent Company
Current Period
In RMB
| Item | 2024 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory share | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 1,002,162,793.00 | 3,412,506,010.91 | 533,289,512.24 | 510,100,496.00 | 12,253,874,983.95 | 16,645,354,771.62 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 1,002,162,793.00 | 3,412,506,010.91 | 533,289,512.24 | 510,100,496.00 | 12,253,874,983.95 | 16,645,354,771.62 | ||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -5,176,500.00 | -58,839,236.80 | -63,567,420.00 | -355,219,828.80 | -355,668,145.60 | |||||||
| (i) Total comprehensive income | 616,766,464.20 | 616,766,464.20 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -5,176,500.00 | -58,390,920.00 | -63,567,420.00 | |||||||||
| 1.Common share invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | -5,176,500.00 | -58,390,920.00 | -63,567,420.00 | |||||||||
| (III) Profit distribution | -971,986,293.00 | -971,986,293.00 | ||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distribution for owners (or shareholders) | -971,986,293.00 | -971,986,293.00 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserve conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserve conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4.Carry-over retained earning from the defined benefit plans | ||||||||||||
| 5.Carry-over retained earning from other comprehensive income | ||||||||||||
| 6. Other |
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the reporting period | 3,089,003.81 | 3,089,003.81 | ||||||||||
| 2. Usage in the reporting period | 3,089,003.81 | 3,089,003.81 | ||||||||||
| (VI)Others | -448,316.80 | -448,316.80 | ||||||||||
| IV. Balance at the end of the reporting period | 996,986,293.00 | 3,353,666,774.11 | 469,722,092.24 | 510,100,496.00 | 11,898,655,155.15 | 16,289,686,626.02 |
Last Period
In RMB
| Item | 2023 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory share | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 1,008,603,293.00 | 3,515,005,861.23 | 541,623,002.63 | 510,100,496.00 | 10,765,319,818.29 | 15,257,406,465.89 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 1,008,603,293.00 | 3,515,005,861.23 | 541,623,002.63 | 510,100,496.00 | 10,765,319,818.29 | 15,257,406,465.89 | ||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -6,023,500.00 | -63,036,715.42 | -3,212,730.39 | 716,065,244.46 | 650,217,759.43 | |||||||
| (i) Total comprehensive income | 813,823,223.76 | 813,823,223.76 | ||||||||||
| (ii) Owners’ devoted and decreased capital | -6,023,500.00 | -63,036,715.42 | -3,212,730.39 | -65,847,485.03 | ||||||||
| 1.Common share invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | 5,522,079.67 | 5,522,079.67 | ||||||||||
| 4. Other | -6,023,500.00 | -68,558,795.09 | -3,212,730.39 | -71,369,564.70 | ||||||||
| (III) Profit distribution | -97,757,979.30 | -97,757,979.30 | ||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distribution for owners (or shareholders) | -97,757,979.30 | -97,757,979.30 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserve conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserve conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4.Carry-over retained earning from the defined benefit plans | ||||||||||||
| 5.Carry-over retained earning from other comprehensive income | ||||||||||||
| 6. Other |
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the reporting period | 3,237,252.50 | 3,237,252.50 | ||||||||||
| 2. Usage in the reporting period | 3,237,252.50 | 3,237,252.50 | ||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the reporting period | 1,002,579,793.00 | 3,451,969,145.81 | 538,410,272.24 | 510,100,496.00 | 11,481,385,062.75 | 15,907,624,225.32 |
III. Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu High-Technology GroupCo., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a Company of limited liability with fundsraised from targeted sources, and registered at Wuxi Administration for Industry & Commerce in October 1992. The original sharecapital of the Company totaled 115.4355 million yuan, including state-owned share capital amounting to 92.4355 million yuan,public corporate share capital amounting to 8 million yuan and inner employee share capital amounting to 15 million yuan.Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu Group Co., Ltd(hereinafter referred to as “Weifu Group”).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company issued 68 millionspecial ordinary shares (B-share) with value of 1.00 yuan for each, and the total value of those shares amounted to 68 million yuan.After the issuance, the Company’s total share capital increased to 183.4355 million yuan.By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at Shenzhen StockExchange through on-line pricing and issuing. After the issuance, the total share capital of the Company amounted to 303.4355million yuan.In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company implemented theplan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the Company amounted to 394.46615million yuan, of which state-owned shares amounted to 120.16615 million yuan, public corporate shares 10.4 million yuan,foreign-funded shares (B-share) 88.40 million yuan, RMB ordinary shares (A-share) 156 million yuan and inner employee shares
19.5 million yuan.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuanceof A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of 10 yuan for each allotted share. Actually
41.9 million shares was allotted, and the total share capital after the allotment increased to 436.36615 million yuan, of which state-owned corporate shares amounted to 121.56615 million yuan, public corporate shares 10.4 million yuan, foreign-funded shares (B-share) 88.4 million yuan and RMB ordinary shares (A-share) 216 million yuan.In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan, and examinedand approved by 2004 Shareholders’ General Meeting, the Company distributed 3 shares for each 10 shares to the wholeshareholders 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 MergerReform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in Share Merger Reform of WeifuHigh-Technology Co., Ltd. issued by State-owned Asset Supervision & Administration Commission of Jiangsu Province, theWeifu Group etc. 8 non-circulating shareholders arranged pricing with granting 1.7 shares for each 10 shares to circulating A-shareshareholders (totally granted 47,736,000 shares), so as to realize the originally non-circulating shares can be traded on marketwhen satisfied certain conditions, the scheme has been implemented on April 5, 2006.On May 27, 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares based on thenumber of circulating A share as prior to Share Merger Reform, according to the aforesaid Share Merger Reform, with anaggregate of 14,039,979 shares dispatched. Subsequent to implementation of dispatch of consideration shares, Weifu Group thenheld 100,021,999 shares of the Company, representing 17.63% of the total share capital of the Company.Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by Wuxi IndustryDevelopment Group Co., Ltd. issued by the State-owned Asset Supervision and Administration Commission of Wuxi CityGovernment, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as Wuxi Industry Group) acquired Weifu Group.After the merger, Weifu Group was then revoked, and its asset and credits & debts were transferred to be under the name of WuxiIndustry Group. Accordingly, Wuxi Industry Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved by [2012] No.109 document of China Securities Regulatory Commission, in February 2012, the Company issued RMB ordinary shares (A-share)of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor privately, Bosch, face value was ONE yuan pershare, added registered capital of 112,858,000 yuan, and the registered capital after change was 680,133,995 yuan. Wuxi IndustryGroup is the first majority shareholder of the Company, and Bosch is the second majority shareholder of the Company.In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and also passed inAnnual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680,133,995 shares, distribute 5-sharefor every 10 shares held by whole shareholders, 340,066,997 shares in total are distributed. Total share capital of the Companyamounting 1,020,200,992 yuan up to December 31, 2013.Deliberated and approved by the Company’s first extraordinary general meeting in 2015, the Company has repurchased11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished the cancellation procedures for aboverepurchase shares in China Securities Depository and Clearing Corporation Limited Shenzhen Branch on September 16, 2015;after the cancellation of repurchase shares, the Company’s paid-up capital (share capital) becomes 1,008,950,570 yuan after thechange.After deliberation and approved by the 5
th meeting of 10
thsession of the BOD for year of 2021, the 291,000 restricted shares arebuy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of theabove mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20, 2021; the paid-in capital(equity) of the Company comes to 1,008,659,570.00 yuan after changed.After deliberation and approved by the 8
th meeting of 10
thsession of the BOD for year of 2022, the 56,277 restricted shares arebuy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of theabove mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on July 8, 2022; the paid-in capital (equity) ofthe Company comes to 1,008,603,293.00 yuan after changed.After deliberation and approved by the 14th meeting of 10
thsession of the BOD for year of 2022, the 16th meeting and the 20thmeeting for year of 2023, the Company bought back and canceled 430,000, 5,593,500, and 417,000 restricted shares granted forthe first time under the 2020 Restricted Stock Incentive Plan. The Company completed the cancellation procedures for the boughtback shares on February 16, 2023, June 16, 2023, and December 18, 2023 at the Shenzhen branch of China Securities Depositoryand Clearing Corporation Limited. The Company's paid in capital (share capital) after the change was RMB 1,002,162,793.00.After deliberation and approved by the 23
rd meeting of 10
thsession of the BOD for year of 2024, the 5,176,500 restricted sharesare buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation ofthe above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on June 7, 2024; the paid-in capital (equity)of the Company comes to 996,986,293.00 yuan after changed.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road, Xinwu District, WuxiUnified social credit code: 91320200250456967NThe Company sets up Shareholders’ General Meeting, the Board of Directors (BOD) and the Board of Supervisors (BOS)The Company sets up Administration Department, Technology Centre, organization & personnel department, Office of the Board,compliance department, IT department, Strategy & new business Department, market development department, Party Mass WorkDepartment, Finance Department, Purchase Department,Manufacturing Quality Department, Discipline Inspection Department,MS (Mechanical System) division, AC(Automotive Components) division and DS (Diesel System ) division, etc. and subsidiariessuch as Wuxi Weifu LIDA Catalytic Converter Co., Ltd, Nanjing WFJN Co., Ltd, IRD Fuel Cells A/S, Borit NV, VHIO etc.
3. Business nature and major operation activities of the Company
The Company's business scope: technology development and consulting services in the mechanical industry; Manufacturing ofinternal combustion engine fuel system products, fuel system testing instruments and equipment, automotive electronic
components, automotive electrical components, non-standard equipment, non-standard cutting tools, and exhaust gas post-treatment systems; Sales of general machinery, hardware and electrical equipment, chemical products and raw materials (excludinghazardous chemicals), automotive parts, and automobiles (excluding passenger cars with less than nine seats); Internal combustionengine maintenance; Rental of self owned houses; Import and export business of various commodities and technologies throughself operation and agency (excluding commodities and technologies restricted or prohibited from import and export by the state);Engineering and technical research and experimental development; Research and development of energy recovery systems;Manufacturing of automotive parts and accessories; General equipment manufacturing (excluding special equipmentmanufacturing) (for projects that require approval by law, business activities can only be carried out after approval by relevantdepartments)General project: Engaging in investment activities with self owned funds; Software development; Software sales; Softwareoutsourcing services; Mold manufacturing; Mold sales; Manufacturing of machine tool functional components and accessories;Sales of machine tool functional components and accessories; Manufacturing of drawing, calculation, and measuring instruments;Sales of drawing, calculation, and measuring instruments; Sales of industrial robots; Installation and maintenance of industrialrobots; Intelligent basic manufacturing equipment manufacturing; Sales of intelligent basic manufacturing equipment;Manufacturing of industrial automatic control system devices; Sales of industrial automatic control system devices; Manufacturingof material handling equipment; Sales of material handling equipment; Manufacturing of gas and liquid separation and purificationequipment; Sales of gas and liquid separation and purification equipment; Technical services, technology development, technologyconsulting, technology exchange, technology transfer, and technology promotion; Research and development of emerging energytechnologies; Import and export of goods; Technology import and export. (Except for projects that require approval according tolaw, conduct business activities independently based on the business license in accordance with the law)Licensed project: Manufacturing of special equipment; Installation, renovation, and repair of special equipment. (For projects thatrequire approval by law, business activities can only be carried out after approval by relevant departments. The specific businessprojects shall be subject to the approval documents or licenses issued by the relevant departments.)
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company was approved by the Board of Directors for reporting dated August 20, 2024.
5. Unless otherwise stated in the notes to these financial statements, the following Company names areabbreviated as follows:
| Name of subsidiary | Short name of subsidiary |
| Nanjing Weifu Jinning Co., Ltd. | WFJN |
| Wuxi Weifu Lida Catalytic Converter Co., Ltd. | WFLD |
| Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd. | WFMA |
| Wuxi Weifu Chang’an Co., Ltd. | WFCA |
| Wuxi Weifu International Trade Co., Ltd. | WFTR |
| Wuxi Weifu Schmitter Powertrain Components Co., Ltd. | WFSC |
| Ningbo Weifu Tianli Turbocharging Technology Co., Ltd. | WFTT |
| Wuxi WFAM Precision Machinery Co., Ltd. | WFAM |
| Wuxi Weifu Lida Catalytic Converter(Wuhan) Co., Ltd. | WFLD (Wuhan) |
| Weifu Lida (Chongqing) Automotive Components Co., Ltd. | WFLD (Chongqing) |
| Nanchang Weifu Lida Automotive Components Co., Ltd. | WFLD (Nanchang) |
| Wuxi Weifu Autosmart Seating System Co., Ltd. | WFAS |
| Weifu Lianhua Automotive Parts（Fuzhou）Co.，Ltd | WFLH |
| Wuxi Weifu E-drive Technologies Co., Ltd. | WFDT |
| Name of subsidiary | Short name of subsidiary |
| Wuxi Weifu Qinglong Power Technology Co., Ltd. | WFQL |
| VHIT Automotive Systems(Wuxi) Co.Ltd | VHWX |
| Weifu Zhigan(Wuxi) Technology Co., Ltd | WFSS |
| Weifu Holding ApS | SPV |
| IRD Fuel Cells A/S | IRD |
| IRD FUEL CELLS LLC | IRD America |
| Borit NV | Borit |
| Borit Inc. | Borit America |
| VHIT S.p.A | VHIO |
IV. Basis of Preparation of Financial Statements
1. Preparation base
The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by theMinistry of Finance, the specific accounting rules revised and issued dated Feb. 15, 2006 and later, the Application Instruments ofAccounting Standards and interpretation on Accounting standards and other relevant regulations (together as “AccountingStandards for Business Enterprise”), as well as the Compilation Rules for Information Disclosure by Companies OfferingSecurities to the Public No.15 – General Provision of Financial Report (Amended in 2023) issued by CSRC in respect of theactual transactions and proceedings, on a basis of ongoing operation.In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is on Accrued basis.Except for certain financial instruments, the financial statement measured on historical cost. Asset have impairment been found,corresponding depreciation reserves shall Accrued according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact sustainableoperation ability of the Company within 12 months since end of the reporting period.V. Major Accounting Policies and EstimationSpecific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system products, automotivecomponents, mufflers, purifiers and fuel cell components etc., in line with the actual operational characteristics and relevantaccounting standards, many specific accounting policies and estimation have been formulated for the transactions and events withrevenue recognized concerned. As for the explanation on major accounting judgment and estimation, found more in Note V- 36.“Changes of important accounting policies and estimation”.
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for BusinessEnterprises, which truly and completely reflected the financial information of the Company during the reporting period, such asfinancial status, operation achievements and cash flow for the year of 2023.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter than one annualaccounting year. The Company adopts Gregorian calendar as accounting period, namely form each January 1 to December 31.
3. Business cycles
Normal business cycle is the period from purchasing asset used for process by the Company to the cash and cash equivalentachieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s recording currency is the RMB yuan.
5. Method for determining importance criteria and selection criteria
?Applicable □ Not applicable
| Item | Importance criteria |
| Important prepayments with an aging of over 1 year | Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount and with an amount greater than 15 million yuan |
| Important construction in progress | The budget for a single project is greater than 80 million yuan |
| Important accounts payable with an aging of over 1 year | Account payable with aging over 1 year accounting for more than 10% of the total accounts payable and with an amount greater than 80 million yuan |
| Other important payables with aging of over 1 year | Other payables with aging over 1 year accounting for more than 10% of the total other payables and an amount greater than 15 million yuan |
| Important contract liability with aging of over 1 year | Contract liability with aging over 1 year account for more than 10% of the total contract liability and the amount greater than 15 million yuan |
| Important non-wholly-owned subsidiaries | The net asset of subsidiaries account for more than 5% of the net asset in the consolidated financial statements, or the net profit of subsidiaries accounts for more than 10% of the net profit in the consolidated financial statements |
| Important joint ventures or associates | The book value of long-term equity investments in an invested entity accounts for more than 5% of the net asset in the consolidated financial statements and the amount exceeds 1 billion yuan, or the investment gain/loss under the equity method account for more than 10% of the net profits in the consolidated financial statements and the amount exceeds 100 million yuan |
6. Accounting treatment method for business combinations under the same/different controlBusiness combination is the transaction or events that two or two above independent enterprises combined as a reporting entity.Business combination including enterprise combined under the same control and business combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the same ultimatecontroller or under the same controller, the control is not temporary. The asset and liability acquired by combining party aremeasured by book value of the combined party on combination date. The balance of net asset’s book value acquired by combiningparty and combine consideration paid (or total book value of the shares issued), shall be used to adjust capital reserve (sharepremium); if the capital reserve (share premium) is not enough for deducted, the retained earnings shall be adjusted. directlyexpenses occurred for enterprise combination, the combining party shall reckon expenses directly occurring for enterprisecombination into current gain/loss at the time of occurrence. Combination day is the date when the combining party obtainscontrolling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the combining
entities are not ultimately controlled by the same party or parties both before and after the combination. As a purchaser, the fairvalue of the asset (equity of purchaser held before the date of purchasing included) for purchasing controlling right from thepurchaser, the liability occurred or undertake on purchasing date less the fair value of identifiable net asset of the purchaserobtained in combination, shall be recognized as goodwill if the results is positive; if the number is negative, the acquirer shallfirstly review the measurement of the fair value of the identifiable asset obtained, liability incurred and contingent liabilityincurred, as well as the combination costs. After that, if the combination costs are still lower than the fair value of the identifiablenet asset obtained, the acquirer shall recognize the difference as the profit or loss in the current period. Other directly expensescost for combination shall be reckoned into current gain/loss. Difference of the fair value of asset paid and its book values,reckoned into current gain/loss. On purchasing date, the identifiable asset, liability or contingency of the purchaser obtained by theCompany recognized by fair value, that required identification conditions; Acquisition date refers to the date on which the acquirereffectively obtains control of the purchaser.
7. Criteria for judging control and preparation method for consolidated financial statement
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined based on control. Control refers to the Companyhaving the power over the invested entity, enjoying variable returns through participating in related activities of the invested entity,and having the ability to use the power over the invested entity to influence its return amount. When changes in relevant facts andcircumstances result in changes in the relevant elements involved in the definition of control, the Company will conduct areassessment.When determining whether to include a structured entity in the scope of consolidation, our Company takes into account all factsand circumstances, including evaluating the purpose and design of the establishment of the structured entity, identifying the typesof variable returns, and evaluating whether to control the structured entity by participating in its related activities and assumingsome or all of the variability of returns.
(2) Preparation method for consolidated financial statements
(1) Recognition principle of consolidation scope
On basis of the financial statement of the parent Company and owned subsidiaries, prepared consolidated statement in line withrelevant information. The scope of consolidation of consolidated financial statements is ascertained on the basis of effectivecontrol. Once certain elements involved in the above definition of control change due to changes of relevant facts or circumstances,the Company will make separate assessment.
(2) Consolidation process
Subsidiaries are consolidated from the date on which the Company obtains their actual control, and are de-consolidated from thedate that such control ceases. All significant inter-group balances, investment, transactions and unrealized profits are eliminated inthe consolidated financial statements. For subsidiaries being disposed, the operating results and cash flows prior to the date ofdisposal are included in the consolidated income statement and consolidated cash flow statement; for subsidiaries disposed duringthe period, the opening balances of the consolidated balance sheet would not be restated. For subsidiaries acquired from a businesscombination not under common control, their operating results and cash flows subsequent to the acquisition date are included inthe consolidated income statement and consolidated cash flow statement, and the opening balances and comparative figures of theconsolidated balance sheet would not be restated. For subsidiaries acquired from a business combination under common control,their operating results and cash flows from the date of commencement of the accounting period in which the combination occurredto the date of combination are included in the consolidated income statement and consolidated cash flow statement, and thecomparative figures of the consolidated balance sheet would be restated.In preparing the consolidated financial statements, where the accounting policies or the accounting periods are inconsistent
between the Company and subsidiaries, the financial statements of subsidiaries are adjusted in accordance with the accountingpolicies and accounting period of the Company.Concerning the subsidiary obtained under combination with different control, adjusted several financial statement of the subsidiarybased on the fair value of recognizable net asset on purchased day while financial statement consolidation; concerning thesubsidiary obtained under combination with same control, considered current status of being control by ultimate controller forconsolidation while financial statement consolidation.The unrealized gain and loss from the internal transactions occurred in the asset the Company sold to the subsidiaries fully offset"the net profit attributable to the owners of the parent Company". The unrealized gain and loss from the internal transactionsoccurred in the asset the subsidiaries sold to the Company are distributed and offset between "the net profit attributable to theowners of the parent Company" and "minority interest" according to the distribution ratio of the Company to the subsidiary. Theunrealized gain and loss from the internal transactions occurred in the asset sold among the subsidiaries are distributed and offsetbetween "the net profit attributable to the owners of the parent Company" and "minority interest" according to the distribution ratioof the Company to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest” item under theownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or loss attributable to the minorityinterests is listed as "minority interest" item under the net profit item in the consolidated income statement. The share of thesubsidiary’s current consolidated income attributable to the minority interests is listed as the “total consolidated incomeattributable to the minority shareholders” item under the total consolidated income item in the consolidated income statement. Ifthere are minority shareholders, add the "minority interests" item in the consolidated statement of change in equity to reflect thechanges of the minority interests. If the loss of the current period shared by a subsidiary’s minority shareholders exceed the sharethat the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the balance still chargesagainst the minority interests.When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair value of theremaining equity interest is re-measured on the date when the control ceased. The difference between the sum of the considerationreceived from disposal of equity interest and the fair value of the remaining equity interest, less the net asset attributable to theCompany since the acquisition date, is recognized as the investment income from the loss of control. Other comprehensive incomerelating to original equity investment in subsidiaries shall be treated on the same basis as if the relevant asset or liability weredisposed of by the purchaser 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 liability or net asset under defined benefit scheme by the originalsubsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with relevant accounting standardssuch as Accounting Standards for business Enterprises 2 – Long-term Equity Investments or Accounting Standards for businessEnterprises 22 – Financial Instruments Recognition and Measurement.The Company shall determine whether loss of control arising from disposal in a series of transactions should be regarded aspackage deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the followingsituations, the transactions shall normally be accounted for as package deal: ①The transactions are entered into after consideringthe mutual consequences of each individual transaction; ② The transactions need to be considered as a whole in order to achieve adeal in commercial sense;③The occurrence of an individual transaction depends on the occurrence of one or more individualtransactions in the series; ④ The result of an individual transaction is not economical, but it would be economical after taking intoaccount of other transactions in the series. When the transactions are not regarded as package deal, the individual transactions shallbe accounted as “disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of aportion of an interest in a subsidiary which lead to loss of control”. When the transactions are regarded as package deal, thetransactions shall be accounted as a single disposal transaction; however, the difference between the consideration received fromdisposal and the share of net asset disposed in each individual transaction before loss of control shall be recognized as othercomprehensive income, and reclassified as profit or loss arising from the loss of control when control is lost.
8. Joint arrangement classification and accounting treatment for joint operationsIn accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint arrangements into:
joint ventures and joint operations.The Company confirms the following items related to the share of interests in its joint operations, and in accordance with theprovisions of the relevant accounting standards for accounting treatment:
(1) Recognize the asset held solely by the Company, and recognize asset held jointly by the Company in appropriation to the shareof the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the Company inappropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
9. Recognition standards for cash and cash equivalent
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held by the Companywith short terms (expired within 3 months since purchased), and liquid and easy to transfer as known amount and investment withminor variation in risks.
10. Foreign currency business and conversion
For foreign currency transactions, convert the foreign currency amount into the accounting base currency amount.At the initial recognition of foreign currency transactions, the foreign currency amount shall be converted into the accounting basecurrency amount with the spot exchange rate on the transaction date. On the balance sheet date, the foreign currency monetaryitems shall be converted with the spot exchange rate on the balance sheet date. The settlement and monetary item discountdifferences arising from this are recognized in the current period's profit and loss, except for the differences arising from foreigncurrency special borrowings related to the acquisition and construction of asset that meet capitalization conditions and are treatedaccording to the principle of borrowing cost capitalization. Foreign currency non-monetary items measured at historical cost shallbe still converted with the exchange rate used at the initial recognition without changing their accounting base currency amount.Foreign currency non- monetary items measured at fair value shall be converted with the spot exchange rate on the fair valuedetermination date, and the resulting differences are recognized in the current period’s profit and loss. The subsequent differenceshall be booked into current profit or loss or other comprehensive income in terms of the feature of non-monetary items.The following displays the methods for translating financial statements involving foreign operations into the statements in RMB:
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balancesheet date. Among the owners’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates ofthe transaction dates. The income and expense items in the income statements of overseas operations are translated at the averageexchange rates of the transaction dates. The exchange difference arising from the above mentioned translation are recognized inother comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange difference will bereclassified to profit or loss in current year when the foreign operation is disposed according to the proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows. The effect ofexchange rate changes on cash is presented separately in the cash flow statement.
11. Financial instrument
Financial instrument is the contract that forms the financial asses for an enterprise and forms the financial liability or equityinstrument for other units.
(1) Classification and initial measurement
The Company recognizes a financial asset or liability when it becomes a party to a financial instrument contract.
1) Classification and initial measurement of financial asset
At the initial recognition, according to the business model of managing financial asset and the contractual cash flow characteristicsof financial asset, the Company classifies the financial asset into the financial asset measured at amortized cost, the financial assetmeasured at fair value and whose changes are included in other comprehensive income, and the financial asset measured at fairvalue and whose changes are included in current profit or loss.Financial asset is measured at fair value for the initial recognition, but if the receivables or receivables financing arising from thesale of goods or the provision of services do not include a significant financing component or the financing component that doesnot exceed one year isn’t considered, it shall be initially measured at the transaction value.For financial asset measured at fair value and whose changes are included in the current profit or loss, related transaction costs aredirectly included in the current profit and loss; for other types of financial asset, related transaction costs are included in theinitially recognized amount.
2) Classification and initial measurement of financial liability
The financial liability of the Company are classified as financial liability measured at fair value and whose changes are included incurrent profit or loss and financial liability measured at amortized cost at the initial recognition. For financial liability that are notclassified as financial liability measured at fair value and whose changes are included in current profit or loss, the relatedtransaction expenses are included in the initial recognition amount.
(2) Subsequent measurement
1) The subsequent measurement of financial asset depends on their classification:
① Financial asset measured at amortized cost
The Company classifies the financial asset that meet the following conditions and are not designated as financial asset measured atfair value and whose changes are included in current profit or loss as financial asset measured at amortized cost:
A. The group’s business model for managing the financial asset is to collect contractual cash flows; andB. The contractual terms of the financial asset stipulate that cash flow generated on a specific date will be only used to pay for theprincipal and interest based on the outstanding principal amount.After initial recognition, such financial asset is measured at amortized cost with the effective interest method. Gain or loss arisingfrom financial asset which are measured at amortized cost and are not a component of any hedging relationship are included incurrent profit or loss when being terminated for recognition, amortized by effective interest method, or impaired.
② Financial asset measured at fair value and whose changes are included in other comprehensive incomeThe Company classifies the financial asset that meet the following conditions and are not designated as financial asset measured atfair value and whose changes are included in current profit or loss as financial asset measured at fair value and whose changes areincluded in other comprehensive income:
A. The Group's business model for managing the financial asset is targeted at both the collection of contractual cash flows and the
sale of financial asset; andB. The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only used to pay for theprincipal and the interest based on the outstanding principal amount.After initial recognition, such financial asset is subsequently measured at fair value. Interests, impairment loss or gain andexchange gain and loss calculated with the effective interest method are included in profit or loss for the period, and other gain orloss are included in other comprehensive income. At the time of derecognition, the accumulated gain or loss previously included inother comprehensive income shall be carried forward from other comprehensive income to current profit or loss.
③ Financial asset measured at fair value and whose changes are included in current profit or lossExcept for the above financial asset measured at amortized cost and measured at fair value and whose changes are included inother comprehensive income, the Company classifies all other financial asset as financial asset measured at fair value and whosechanges are included in current profit or loss. In the initial recognition, in order to eliminate or significantly reduce accountingmismatch, the Company irreversibly designates part of the financial asset that should be measured at amortized cost or measured atfair value and whose changes are included in the other comprehensive income as the financial asset measured at fair value andwhose changes are included in current profit or loss.After the initial recognition, such financial asset is subsequently measured at fair value, and the gain or loss (including interestsand dividend income) are included in the current profit and loss, unless the financial asset is part of the hedging relationship.However, for non-trading equity instrument investments, the Company irreversibly designates them as the financial asset that aremeasured at fair value and whose changes are included in other comprehensive income in the initial recognition. The designationis made based on a single investment and the relevant investment is in line with the definition of equity instruments from theissuer’s perspective. After initial recognition, such financial asset is subsequently measured at fair value. Dividend income thatmeets the conditions is included in profit or loss, and other gain or loss and changes in fair value are included in othercomprehensive income. When it is terminated for recognition, the accumulated gain or loss previously included in othercomprehensive income are transferred from other comprehensive income and included in retained earnings.
2) The subsequent measurement of financial liability depends on their classification：
① Financial liability measured at fair value and with variation reckoned into current gain/lossFinancial liability measured at fair value and with variation reckoned into current gain/loss include tradable financial liability andthe financial liability that are designated as fair value in the initial recognition and whose changes are included in current profit orloss. For such financial liability, the subsequent measurement is based on fair value, and the gain or loss arising from changes infair value and the dividends and interest expenses related to these financial liability are included in current profit or loss.
② Financial liability measured at amortized cost
Other financial liability is subsequently measured at amortized cost with the effective interest method. The gain or loss arisingfrom de-recognition or amortization is included in current profit or loss.
(3) Transfer and derecognition of financial instruments
1) Transfer and derecognition of financial asset
For financial asset that the Company has transferred almost all risks and rewards of ownership of financial asset to the transferee,terminate the recognition of the financial asset; if almost all the risks and rewards of ownership of financial asset have beenretained, do not terminate the recognition of the financial asset.If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial asset, dispose asfollowing situations: If the control of the financial asset is abandoned, terminate the recognition of the financial asset anddetermine the resulting asset and liability. If the control of the financial asset is not abandoned, determine the relevant financial
asset according to the extent to which they continue to be involved in the transferred financial asset, and determine the relatedliability accordingly.For those who continue to be involved by providing financial guarantees for the transferred financial asset, the asset formed byfurther involvement shall be recognized based on the lower of the book value of the financial asset and the amount of financialguarantees. The financial guarantee amount refers to the highest amount of consideration received that will be required to berepaid.
2) General principles for derecognition of financial instruments
If the following conditions are met, the Company will derecognize the financial asset (or a portion of financial asset, or a group ofsimilar financial asset), that is, charge off them from their accounts and balance sheets:
① The right to receive cash flows from financial asset has expired;
②The right to receive cash flows from financial asset has been transferred, or assume the obligation to timely and fully pay thecash flows received to the third party under a “pass-through agreement”; and (a) substantially transferred almost all the risks andrewards of ownership of the financial asset, or (b) relinquished control over the financial asset even though substantially neithertransferred nor retained almost all the risks and rewards of ownership of the financial asset.In case the liability for financial liability has been fulfilled, revoked or expired, such financial liability shall be derecognized. If theexisting financial liability is replaced by another financial liability with substantially different terms by the same creditor, or if theterms of the existing liability is substantially modified, such replacement or modification shall be treated as derecognition of theoriginal liability and recognition of new liability, and the difference shall be booked into the current period’s profit and loss.The financial asset which are bought or sold in a conventional manner shall be recognized or derecognized according to theaccounting on the transaction date. Buying and selling financial asset in a conventional manner refers to the purchase or sale offinancial asset in accordance with contractual provisions, and the terms of the contract stipulate that financial asset is deliveredaccording to the time schedule usually determined by regulations or market practices. The trading day refers to the date on whichthe Company promises to buy or sell financial asset.
(4) Balance-out between the financial asset and liability
As the Company has the legal right to balance out the financial liability by the net or liquidation of the financial asset, the balance-out sum between the financial asset and liability is listed in the balance sheet. In addition, the financial asset and liability is listedin the balance sheet without being balanced out.
(5) Fair value of financial instruments
For financial instruments with active markets, their fair value shall be determined based on their quoted prices in the active market.For financial instruments that do not have an active market, their fair value shall be determined with valuation techniques. At thetime of valuation, the Company adopts valuation techniques that are applicable in the current situation and have sufficientavailable data and other information support, selects input values that are consistent with the asset or liability characteristicsconsidered by market participants in the transaction of related asset or liability, and uses relevant observable input values as muchas possible, and use unobservable input values when relevant observable input values cannot be obtained or are not feasible.
(6) Impairment of financial instruments
Based on expected credit loss, the Company withdraws provisions for impairment loss and recognizes credit impairment loss forfinancial asset measured at amortized cost, debt instrument investments measured at fair value with changes recognized in othercomprehensive income, and financial guarantee contracts.For accounts receivable, bills receivable, and accounts receivable financing that do not contain significant financing components,the Company adopts a simplified measurement method to measure the provision for impairment loss based on the expected credit
loss amount in the entire existence period.For accounts receivable, notes receivable, and accounts receivable financing that contain significant financing components, theCompany chooses to use a simplified measurement method to measure the provision for loss based on the expected credit lossamount equivalent to the entire existence period.For financial asset other than those using simplified measurement methods mentioned above, the Company assesses on eachbalance sheet date whether their credit risk has significantly increased since initial recognition. If credit risk has not significantlyincreased since initial recognition and is in the first stage, the Company measures loss provisions based on the expected amount ofcredit loss in the next 12 months; If credit risk has significantly increased since initial recognition but credit impairment has notyet occurred, and is in the second stage, the Company measures the provision for loss at an amount equivalent to the expectedcredit loss for the entire existence period; Financial instruments that have experienced credit impairment since initial recognitionare in the third stage, and the Company measures the provisions for impairment loss based on expected credit loss over the entireexistence period.For financial instruments with lower credit risk on the balance sheet date, the Company assumes that their credit risk has notsignificantly increased since initial recognition and measures loss provisions based on expected credit loss over the next 12 months.Except for accounts receivable that are individually assessed for credit risk, our Company divides other accounts receivable intoseveral portfolios based on credit risk characteristics and calculates expected credit loss on the basis of these combinations.Accounts receivable that are individually assessed for credit risk, such as those in dispute with the other party or involved inlitigation or arbitration; there are clear indications that the debtor may not be able to fulfill their repayment obligations foraccounts receivable, etc.Due to similar credit risk characteristics, no provision for bad debts is made for accounts receivable between companies within thescope of our consolidated financial statements that have no impairment in a single test.Except for separately evaluating credit risk accounts receivable, the Company divides accounts receivable into different portfoliosbased on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determiningdifferent portfolios and methods for measuring expected credit loss are as follows:
| Item | Basis for determining the portfolio | Specific methods for measuring expected credit loss |
| Accounts receivable financing - bank acceptance bill portfolio | Bank acceptance bill | For accounts receivable within six months, the Company does not provide for expected credit loss; In addition, the Company believes that the credit risk of the bank acceptance bills it holds is relatively low and will not cause significant loss due to bank defaults. Therefore, the expected credit loss shall not be measured for the corresponding receivables financing bank acceptance portfolio. |
| Accounts receivable - commercial acceptance bill portfolio | Commercial acceptance bill | For accounts receivable within six months, the Company does not provide for expected credit loss; In addition, the credit risk of the commercial acceptance bills held by our Company is relatively low, as these bills are mainly issued by reputable automobile manufacturers. Based on historical experience, there have been no significant defaults. Therefore, the Company doesn’t measure expected credit loss for the portfolio of accounts receivable and commercial acceptance bills |
| Accounts Receivable - Customer Portfolio | Accounts receivable other than accounts receivable from internal related parties and those for which credit impairment loss have been individually provisioned | Measure expected credit loss based on aging |
| Other receivables - accounts receivable other portfolio | Other receivables except for accounts receivable from internal related parties and accounts for which credit impairment loss have been individually provisioned | Based on historical credit loss experience, combined with current conditions and predictions of future economic conditions, the expected credit loss is calculated by default risk exposure and the expected credit loss rate for the next 12 months or the entire duration. |
For accounts receivable that are measured for expected credit loss based on their aging, their aging is calculated continuously fromthe initial recognition date of the debt. The corresponding provision ratio for expected credit loss at different aging stages is asfollows:
| Aging | Provision ratio (%) |
| Within 6 months | -- |
| 6 months - 1 year | 10.00 |
| 1 - 2 years | 20.00 |
| 2 -3 years | 40.00 |
| Over three years | 100.00 |
12. Note receivable
Note receivable 1: bank acceptance billNote receivable 2: commercial acceptance billThe Company calculates expected credit loss by referring to historical credit loss experience, taking into account currentconditions and forecasts of the future economic situation.
13. Account receivable
Account receivable 1: receivable from clientsAccount receivable 2: receivable from internal related partyThe Company calculates expected credit loss by referring to historical credit loss experience, taking into account currentconditions and forecasts of the future economic situation.
14. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in othercomprehensive income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer tomore relevant accounting policies in Note V- 11. “Financial Instrument”.
15. Other account receivables
Determination method of expected credit loss and accounting treatmentOther account receivables 1: receivable from internal related partyOther account receivables 2: receivable from othersThe Company calculates expected credit loss by referring to historical credit loss experience, taking into account currentconditions and forecasts of the future economic situation.
16. Contract asset
Recognition method and standard of contract asset: contract asset refer to the right of a Company to receive consideration aftertransferring goods or providing services to customers, and this right depends on other factors besides the passage of time. TheCompany's unconditional (that is, only depending on the passage of time) right to collect consideration from customers areseparately listed as receivables.Method for determining expected credit loss of contract asset: the method for determining expected credit loss of contract asset isconsistent with the method for determining expected credit loss of accounts receivable.Accounting treatment method of expected credit loss of contract asset: if the contract asset is impaired, the Company shall debitthe “asset impairment loss” account and credit the “contract asset impairment provision” account according to the amount thatshould be written down. When reversing the provision for asset impairment that has already been withdrawn, make oppositeaccounting entries.
17. Inventory
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventories
The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method, and the differencein cost that it should bear is carried forward at the end of the period, and the standard cost is adjusted to the actual cost.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment provisionInventories at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of overall clearanceabout inventories, inventory impairment provision is withdrawn for uncollectible part of costs of inventories which result fromdestroy of inventories, out-of-time of all and part inventories, or sales price lowering than cost. Inventory impairment provision forstock goods and quantity of raw materials is subject to the difference between costs of single inventory item over its net realizablevalue. As for other raw materials with large quantity and comparatively low unit prices, inventory impairment provision iswithdrawn pursuant to categories.As for finished goods, commodities and materials available for direct sales, their net realizable values are determined by theirestimated selling prices less estimated sales expenses and relevant taxes. For material inventories held for purpose of production,their net realizable values are determined by the estimated selling prices of finished products less estimated costs, estimated salesexpenses and relevant taxes accumulated till completion of production. As for inventories held for implementation of salescontracts or service contracts, their net realizable values are calculated on the basis of contract prices. In the event that inventoriesheld by a Company exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on thebasis of normal sale price.
(4) Inventory system
The Company adopts a perpetual inventory system and conducts regular physical inventory checks.
(5) Amortization of low-value consumables and wrappage
① Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
② Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
18. Asset held for sale
The Company classifies non-current asset or disposal groups that meet all of the following conditions as held-for-sale: accordingto the practice of selling this type of asset or disposal groups in a similar transaction, the non-current asset or disposal group can besold immediately at its current condition; The sale is likely to occur, that is, the Company has made resolution on the selling planand obtained definite purchase commitment, the selling is estimated to be completed within one year. Those asset whose disposalis subject to approval from relevant authority or supervisory department under relevant requirements are subject to that approval.Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or not the Companyretains part equity investment after such disposal, investment in the subsidiary shall be classified in its entirety as held for sale inthe separate financial statement of the parent Company subject to that the investment in the subsidiary proposed to be disposedsatisfies the conditions for being classified as held for sale, and all the asset and liability of the subsidiary shall be classified asheld for sale in consolidated financial statement.The purchase commitment identified refers to the legally binding purchase agreement entered into between the Company and otherparties, which sets out certain major terms relating to transaction price, time and adequately stringent punishment for default,which render an extremely minor possibility for material adjustment or revocation of the agreement.Asset held for sale are measured at the lower of their carrying value and fair value less selling expense. If the carrying value is
higher than fair value less selling expense, the excess shall be recognized as impairment loss and recorded in profit or loss for theperiod, and allowance for impairment shall be provided for in respect of the asset. In respect of impairment loss recognized fordisposal group held for sale, firstly deduct the carrying value of the goodwill in the disposal group, and then deduct the carryingvalue of the non-current asset within the disposal group applicable to this measurement standard on a pro rata basis according tothe proportion taken by their carrying value.If the net amount of fair value of non-current asset held for sale less sales expense on subsequent balance sheet date increases, theamount previously reduced for accounting shall be recovered and reverted from the impairment loss recognized after the asset isclassified under the category of held for sale, with the amount reverted recorded in profit or loss for the period. Impairment lossrecognized before the asset is classified under the category of held for sale shall not be reverted. If the net amount of fair value ofthe disposal group held for sale on the subsequent balance sheet date less sales expenses increases, the amount reduced foraccounting in previous periods shall be restored, and shall be reverted in the impairment loss recognized in respect of the non-current asset which are applicable to relevant measurement provisions after classification into the category of held for sale, withthe reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall not be reverted.The non-current asset in the non-current asset or disposal group held for sale is not depreciated or amortized, and the debt interestsand other fees in the disposal group held for sale continue to be recognized.If the non-current asset or disposal group are no longer classified as asset held for sale since they no longer meet the condition ofbeing classified as held for sale or the non-current asset is removed from the disposal group held for sale, they will be measured atthe lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the depreciation, amortizationor impairment that should have been recognized given they are not classified as held for sale;(ii) The recoverable amount.
19. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint control or significantinfluence over the invested party. Long-term equity investment without control or joint control or significant influence of theGroup is accounted for as available-for-sale financial asset or financial asset measured at fair value and with variation reckonedinto current gain/loss. As for other accounting policies found more in Note V -11. “Financial instrument”.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of acquirement:
① For a long-term equity investment acquired through a business combination involving enterprises under common control, theinitial investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of theowner’s equity under the consolidated financial statements of the ultimate controlling party on the date of combination. Thedifference between the initial cost of the long-term equity investment and the cash paid, non-cash asset transferred as well as thebook value of the debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient tooffset, the retained earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initialinvestment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’sequity under the consolidated financial statements of the ultimate controlling party on the date of combination. With the total facevalue of the shares issued as share capital, the difference between the initial cost of the long-term equity investment and total facevalue of the shares issued shall be used to offset against the capital reserve. If the capital reserve is insufficient to offset, theretained earnings shall be adjusted. For business combination resulting in an enterprise under common control by acquiring equityof the absorbing party under common control through a stage-up approach with several transactions, these transactions will bejudged whether they shall be treated as “package deal”. If they belong to “package deal”, these transactions will be accounted for atransaction in obtaining control. If they are not belonging to “package deal”, the initial investment cost of the long-term equity
investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the consolidated financialstatements of the ultimate controlling party on the date of combination. The difference between the initial cost of the long-termequity investment and the aggregate of the carrying amount of the long-term equity investment before merging and the carryingamount the additional consideration paid for further share acquisition on the date of combination shall offset against the capitalreserve. 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 of combination orrecognized for available-for-sale financial asset will not be accounted for.
② For the long-term equity investment obtained by business combination not under the same control, the fair value of the assetinvolved, the equity instruments issued and the liability incurred or assumed on the transaction date, plus the combined costdirectly related to the acquisition is used as the initial investment cost of the long-term equity investment. The identifiable asset ofthe combined party and the liability (including contingent liability) assumed by the combined party on the combining date are allmeasured at fair value, regardless of the amount of minority shareholders’ equity. The amount of the combined cost exceeding thefair value of the identifiable net asset of the combined party obtained by the Company is recorded as goodwill, and the amountbelow the fair value of the identifiable net asset of the combining party is directly recognized in the consolidated incomestatement.(For business combination resulted in an enterprise not under common control by acquiring equity of the acquire undercommon control through a stage-up approach with several transactions, these transactions will be judged whether they shall betreat as “package deal”. If they belong to “package deal”, these transactions will be accounted for a transaction in obtaining control.If they are not belonging to “package deal”, the initial investment cost of the long-term equity investment accounted for using costmethod shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additionalinvestment cost. For previously held equity accounted for using equity method, relevant other comprehensive income will not beaccounted for. For previously held equity investment classified as available-for-sale financial asset, the difference between its fairvalue and carrying amount, 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.)
③ Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according to actualpayment for purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is determined at fair valueof such securities;C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-monetary asset,which is of commercial nature, is determined at fair value of the asset exchanged-out; otherwise determined at carrying value ofthe asset exchanged-out if it is not of commercial nature;D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at fair value of suchinvestment.
(2) Subsequent measurement on long-term equity investment
① Presented controlling ability on invested party, the investment shall use cost method for measurement.
② Long-term equity investments with joint control (excluding those constitute joint ventures) or significant influence on theinvested party are accounted for using equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds the investor’s interest in thefair value of the invested party’s identifiable net asset at the acquisition date, no adjustment shall be made to the initial investmentcost. Where the initial investment cost is less than the investor’s interest in the fair value of the invested party’s identifiable netasset at the acquisition date, the difference shall be charged to profit or loss for the current period, and the cost of the long termequity 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 thenet profits or loss and other comprehensive income made by the invested party, respectively. Meanwhile, the carrying amount of
long-term equity investment shall be adjusted. The carrying amount of long-term equity investment shall be reduced based on theGroup’s share of profit or cash dividend distributed by the invested party. In respect of the other movement of net profit or loss,other comprehensive income and profit distribution of invested party, the carrying value of long-term equity investment shall beadjusted and included in the capital reserves. The Group shall recognize its share of the invested party’s net profits or loss basedon the fair values of the invested party’s individual separately identifiable asset at the time of acquisition, after making appropriateadjustments thereto. In the event of in-conformity between the accounting policies and accounting periods of the invested partyand the Company, the financial statements of the invested party shall be adjusted in conformity with the accounting policies andaccounting periods of the Company. Investment gain and other comprehensive income shall be recognized accordingly. In respectof the transactions between the Group and its associates and joint ventures in which the asset disposed of or sold are not classifiedas operation, the share of unrealized gain or loss arising from inter-group transactions shall be eliminated by the portionattributable to the Company. Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions between the Group and an invested party is not eliminated to the extent that the loss is impairment loss of thetransferred asset. 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 initial investment cost ofadditional long-term equity investment shall be the fair value of disposed operation. The difference between initial investment costand the carrying value of disposed operation will be fully included in profit or loss for the current period. In the event that theGroup sold an asset classified as operation to its associates or joint ventures, the difference between the carrying value ofconsideration received and operation shall be fully included in profit or loss for the current period. In the event that the Companyacquired an asset which formed an operation from its associates or joint ventures, relevant transaction shall be accounted for inaccordance with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or loss related to thetransaction shall be accounted for.The Group’s share of net loss of the invested party shall be recognized to the extent that the carrying amount of the long-termequity investment together with any long-term interests that in substance form part of the investor’s net investment in the investedparty are reduced to zero. If the Group has to assume additional obligations, the estimated obligation assumed shall be provided forand charged to the profit or loss as investment loss for the period. Where the invested party is making profits in subsequent periods,the Group shall resume recognizing its share of profits after setting off against the share of unrecognized loss.
③Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of long-term equityinvestment which was compared to fair value of identifiable net asset recognized which are measured based on the continuousmeasurement since the acquisition date (or combination date) of subsidiaries attributable to the Group calculated according to theproportion of newly acquired shares, the difference of which recognized as adjusted capital surplus, capital surplus insufficient toset off impairment and adjusted retained earnings.
④ Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a subsidiary without lossof control, the difference between disposal cost and disposal of long-term equity investments relative to the net asset of thesubsidiary is charged to the owners’ equity. If disposal of a portion of the long-term equity investments in a subsidiary by theparent Company results in a change in control, it shall be accounted for in accordance with the relevant accounting policies asdescribed in Note V-7. “Criteria for judging control and preparation method for consolidated financial statement”.On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the investment and theactual 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 alsoaccounted for using equity method, other comprehensive income previously under owners’ equity shall be accounted for inaccordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party on pro rata basisat the time of disposal. The owners’ equity recognized for the movement of other owners’ equity (excluding net profit or loss,
other comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current period onpro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest after disposal alsoaccounted for cost equity method, other comprehensive income measured and reckoned under equity method or financialinstrument before control of the invested party unit acquired shall be accounted for in accordance with the same accountingtreatment for direct disposal of relevant asset or liability by invested party on pro rata basis at the time of disposal and shall betransferred to profit or loss for the current period on pro rata basis; among the net asset of invested party unit recognized by equitymethod (excluding net profit or loss, other comprehensive income and profit distribution of invested party) shall be transferred toprofit or loss for the current period on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the group, in preparing separatefinancial statements, the remaining equity interest which can apply common control or impose significant influence over theinvested party after disposal shall be accounted for using equity method. Such remaining equity interest shall be treated asaccounting for using equity method since it is obtained and adjustment was made accordingly. For remaining equity interest whichcannot apply common control or impose significant influence over the invested party after disposal, it shall be accounted for usingthe recognition and measurement standard of financial instruments. The difference between its fair value and carrying amount as atthe date of losing control shall be included in profit or loss for the current period. In respect of other comprehensive incomerecognized using equity method or the recognition and measurement standard of financial instruments before the Group obtainedcontrol over the invested party, it shall be accounted for in accordance with the same accounting treatment for direct disposal ofrelevant asset or liability by invested party at the time when the control over invested party is lost. Movement of other owners’equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of invested party accountedfor and recognized using equity method) shall be transferred to profit or loss for the current period at the time when the controlover invested party is lost. Of which, for the remaining equity interest after disposal accounted for using equity method, othercomprehensive income and other owners’ equity shall be transferred on pro rata basis. For the remaining equity interest afterdisposal accounted for using the recognition and measurement standard of financial instruments, other comprehensive income andother owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equity investment bythe Group, the remaining equity interest after disposal 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 common control orsignificant influence shall be included in profit or loss for the current period. In respect of other comprehensive income recognizedunder previous equity investment using equity method, it shall be accounted for in accordance with the same accounting treatmentfor direct disposal of relevant asset or liability by invested party at the time when equity method was ceased to be used. Movementof other owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset ofinvested party accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at thetime 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 thesubsidiary is lost. If the said transactions belong to “package deal”, each transaction shall be accounted for as a single transactionof disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for eachtransaction and the carrying amount of the corresponding long-term equity investment of disposed equity interest before loss ofcontrol shall initially recognized as other comprehensive income, and subsequently transferred to profit or loss arising from loss ofcontrol for the current period upon loss of control.
(3) Criteria of joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant activities of sucharrangement must be decided by unanimously agreement from parties who share control. When determining whether there is jointcontrol, firstly judge whether all the participants or participant group have controlling over such arrangement as a group or not,
and then judge whether the decision-making for such arrangement are agreed unanimity by the participants or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of an investedparty, but to fail to control or joint control the formulation of such policies together with other parties. When determining whethersignificant influence can be exerted on the invested entity, the potential factors of voting power as current convertible bonds andcurrent executable warrant of the invested party held by investors and other parties shall be considered.
20. Investment real estate
Measurement model of investment real estateCost measurementDepreciation or amortizationInvestment real estate is stated at cost. The cost of externally purchased properties held-for-investment includes purchasing price,relevant taxes and surcharges and other expenses which are directly attributable to the asset. Cost of self construction of propertiesheld for investment is composed of necessary expenses occurred for constructing those asset to a state expected to be available foruse. Properties held 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 investment real estate is subsequently measured by the Company with cost method. The depreciation and amortization iscalculated with the straight-line method on the basis of their estimated useful lives.
21. Fixed asset
(1) Recognition conditions
Fixed asset refer to the tangible asset for production of products, provision of labor, lease or operation, with a service life longerthan one year and higher unit value.
(2) Depreciation methods
| Category | Depreciation method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Permanent ownership land | Straight-line depreciation | Indefinite | No depreciation | |
| House and building | Straight-line depreciation | 20~35 | 5% | 2.71~4.75 |
| Machinery equipment | Straight-line depreciation | 10 | 5% | 9.50 |
| Transportation equipment | Straight-line depreciation | 4~5 | 5% | 19.00~23.75 |
| Electronic and other equipment | Straight-line depreciation | 3～10 | 5% | 9.50～31.67 |
For the fixed asset with impairment provision, the depreciation amount shall be calculated after deducting the accumulated amountof impairment provision for fixed assetThe Company shall review the useful life, estimated net residual value, and depreciation method of fixed asset at least at the end ofeach fiscal year, and make necessary adjustments.
22. Construction in progress
From the date on which the fixed asset built by the Company come into an expected usable state, the construction in progress areconverted into fixed asset on the basis of the estimated value of project estimates or pricing or project actual costs, etc.Depreciation is calculated from the next month. Further adjustments are made to the difference of the original value of fixed assetafter final accounting is completed upon completion of projects.
23. Borrowing cost
(1) Recognition of capitalization of borrowing cost
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange differences inconnection with foreign currency borrowings. The borrowing costs of the Company, which incur from the special borrowingsoccupied by the fixed asset that need more than one year (including one year) for construction, development of investmentproperties or inventories or from general borrowings, are capitalized and recorded in relevant asset costs; other borrowing costs arerecognized as expenses and recorded in the profit or loss in the period when they are occurred. Relevant borrowing costs start to becapitalized when all of the following three conditions are met:
①Capital expenditure has been occurred;
②Borrowing costs have been occurred;
③Acquisition or construction necessary for the asset to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such asset reached toits intended use of status or sales, than reckoned into asset costs while satisfy the above mentioned capitalization condition;capitalization of borrowing costs shall be suspended and recognized as current expenditure during periods in which construction offixed asset, investment real estate and inventory are interrupted abnormally, when the interruption is for a continuous period ofmore than 3 months, until the acquisition, construction or production of the qualifying asset is resumed; capitalization shalldiscontinue when the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shallreckoned into financial expenses while occurring for the current period.
(3) Measurement of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the asset qualifiedfor capitalization, the amount of interests expenses of the special borrowings actually occurred in the period less interest incomederived from unused borrowings deposited in banks or less investment income derived from provisional investment, arerecognized.With respect to the general borrowings occupied for acquisition, construction or production and development of the asset qualifiedfor capitalization, the capitalized interest amount for general borrowings is calculated and recognized by multiplying a weightedaverage of the accumulated expenditure on the asset in excess of the expenditure on the asset of the special borrowings, by acapitalization rate for general borrowings. The capitalization rate is determined by calculation of the weighted average interest rateof the general borrowings.
24. Intangible asset
(1) Service life and its determination basis, estimate, amortization method or review procedure
(1) Service life and its determination basis, estimate, amortization method or review procedure
① Measurement of intangible asset
The intangible asset of the Company include land use rights, patented technology and non-patents technology etc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related costs.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value stipulated in theinvestment contract or agreement, except where the value stipulated in the contract or agreement is not fair.The intangible asset acquired through exchange of non-monetary asset, which is commercial in substance, is carried at the fairvalue of the asset exchanged out; for those not commercial in substance, they are carried at the carrying amount of the assetexchanged out.The intangible asset acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible asset:
The land use rights of the Company shall be amortized on an average basis over the transfer period from the date of transfer (thedate of obtaining the land use rights); Patented technology, non-patented technology and other intangible asset of the Company areamortized by straight-line method with the shortest terms among expected useful life, benefit years regulated in the contract andeffective age regulated by the laws. The amortization amount shall count in relevant asset costs and current gain/loss according tothe benefit object.As for the intangible asset as trademark, with uncertain benefit terms, amortization shall not be carried.Our Company shall review the useful life and amortization method of intangible asset at least at the end of each fiscal year, andmake necessary adjustments.
(2) The collection scope and related accounting treatment methods of R&D expenditureExpenses incurred during the research phase are recognized as profit or loss in the current period; expenses incurred during thedevelopment phase that satisfy the following conditions are recognized as intangible asset (patented technology and non-patentstechnology):
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 developmentof the intangible asset, and there is capability to use or sell the intangible asset;
⑤ The expenses attributable to the development phase of the intangible asset can be measured reliably.If the expenses incurred during the development phase did not qualify the above mentioned conditions, such expenses incurred areaccounted for in the profit or loss for the current period. The development expenditure reckoned in gain/loss previously shall notbe recognized as asset in later period. The capitalized expenses in development stage listed as development expenditure in balancesheet, and shall be transfer as intangible asset since such item reached its expected conditions for service.
25. Impairment of long-term asset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of non-current non-financial asset such as fixed asset, construction in progress, intangible asset with a finite useful life, investment propertiesmeasured at cost, and long-term equity investments in subsidiaries, joint controlled entities and associates. If there is any evidenceindicating that an asset may be impaired, recoverable amount shall be estimated for impairment test. Goodwill, intangible assetwith an indefinite useful life and intangible asset beyond working conditions will be tested for impairment annually, regardless ofwhether there is any indication of impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairmentprovision will be made according to the difference and recognized as an impairment loss. The recoverable amount of an asset isthe higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from theasset. An asset’s fair value is the price in a sale agreement in an arm’s length transaction. If there is no sale agreement but the assetis traded in an active market, fair value shall be determined based on the bid price. If there is neither sale agreement nor activemarket for an asset, fair value shall be based on the best available information. Costs of disposal are expenses attributable todisposal 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 over the course ofcontinued use and final disposal is determined as the amount discounted using an appropriately selected discount rate. Provisionsfor asset impairment shall be made and recognized for the individual asset. If it is not possible to estimate the recoverable amountof the individual asset, the Group shall determine the recoverable amount of the asset group to which the asset belongs. The assetgroup is the smallest group of asset capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements shall beallocated to the asset groups or group of asset benefiting from synergy of business combination. If the recoverable amount is lessthan the carrying amount, the Group shall recognize an impairment loss. The amount of impairment loss shall first reduce thecarrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of otherasset (other than goodwill) within the asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid asset shall not be reversed in a subsequent period in respect of the part whosevalue can be recovered.
26. Long-term deferred expense
Long-term expenses to be amortized of the Company implies the expenses that are already charged and with the beneficial term ofmore than one year are evenly amortized over the beneficial term. For the long-term deferred expense items cannot benefit thesubsequent accounting periods, the amortized value of such items is all recorded in the profit or loss during recognition.
27. Contract liability
The Company lists the obligation to transfer goods or provide labor services to customers for the consideration received orreceivable from customers as contractual liability, such as the amount that the Company has received before the transfer of thepromissory goods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff provides service to the Company, the short-term remuneration actual occurred shallbe recognized as liability and be reckoned into current gain/loss. During the accounting period when staff provides service to theCompany, the actual short-term compensation occurred shall be recognized as liability and be reckoned into current gain/loss,except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall bereckoned into current gain/loss or relevant asset costs at the time of actual occurrence. The employee compensation shall berecognized as liability and be reckoned into current gain/loss or relevant asset costs at the time of actual occurrence. The employeebenefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medical insurance,work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the laborunion expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined as thecorresponding compensation amount and determined the corresponding liability in accordance with the specified withdrawingbasis and proportion, and be reckoned in the current profits and loss or relevant asset costs in the accounting period that theemployees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit includes the defined contribution plans and defined benefit plans. Post-employment benefits planrefers to the agreement about the post-employment benefits between the enterprise and employees, or the regulations or measuresthe enterprise established for providing post-employment benefits to employees. The defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t undertake the obligation of payment after depositing the fixed charges to theindependent fund; the defined benefit plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting treatment for retirement benefits
In case the Company terminates the employment relationship with employees before the end of the employment contracts or
provides compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognizeemployee compensation liability arising from compensation for staff dismissal and included in profit or loss for the current period,when the Company cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans andemployee redundant proposals; and the Company recognize cost and expenses related to payment of compensation for dismissaland restructuring, whichever is earlier.The early retirement plan shall be accounted for in accordance with the accountingprinciples for compensation 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 the scheduled retirementdate, shall be recognized (as compensation for termination of employment) in the current profit or loss by the Group if therecognition principles for provisions are satisfied.
(4) Accounting treatment for other long-term employee benefits
Except for the Compulsory insurance, the Company provides the supplementary retirement benefits to the employees satisfyingcertain conditions, the supplementary retirement benefits belong to the defined benefit plans, and the defined benefit liabilityconfirmed on the balance sheet is the value by subtracting the fair value of plan asset from the present value of defined benefitobligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by theindependent actuary on the basis of treasury bond rate with similar obligation term and currency. The service charges related to thesupplementary retirement benefits (including the service costs of the current period, the previous service costs, and the settlementgain or loss) and the net interest are reckoned in the current profits and loss or other asset costs, the changes generated byrecalculating the net liability of defined benefit plans or net asset should be reckoned in other consolidated income.
29. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigation or arbitration, productwarranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed asset, etc. shall be recognized as anestimated liability when all of the following conditions are satisfied:
① The obligation is a present obligation of the Company;
② It is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ The amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the contingencies
30. Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liability determined on the basis ofequity instruments in order to obtain services provided by employees or other parties. The Company’s share-based payment isclassified as equity-settled share-based payment and cash-settled share-based payment.
(1) Equity-settled share-based payment and equity instruments
Equity-settled share-based payment in exchange for services provided by employees shall be measured at the fair value of theequity instruments granted to employees. If the Company uses restricted stocks for share-based payment, employees contributecapital to subscribe for stocks, and the stocks shall not be listed for circulation or transfer until the unlocking conditions are metand unlocked; if the unlocking conditions specified in the final equity incentive plan are not met, the Company shall repurchasethe stocks at the pre-agreed price. When the Company obtains the payment for the employees to subscribe for restricted stocks, itshall confirm the share capital and capital reserve (share capital premium) according to the obtained subscription money, and at thesame time recognize a liability in full for the repurchase obligation and recognize treasury shares. On each balance sheet dateduring the waiting period, the Company makes the best estimate of the number of vesting equity instruments based on the changes
in the latest obtained number of vested employees, whether they meet the specified performance conditions, and other follow-upinformation. On this basis, the services obtained in the current period are included in related costs or expenses based on the fairvalue on the grant date, and the capital reserve shall be increased accordingly.For share-based payments that cannot be vested in the end, costs or expenses shall not be recognized, unless the vesting conditionsare market conditions or non-vesting conditions. At this time, regardless of whether the market conditions or the non-vestingconditions are met, as long as all non-market conditions in the vesting conditions are met, it is deemed as vesting.If the terms of equity-settled share-based payment are modified, at least the services obtained should be confirmed in accordancewith the unmodified terms. In addition, any modification that increases the fair value of the equity instruments granted, or achange that is beneficial to employees on the modification date, is recognized as an increase in services received.If the equity-settled share payment is canceled, it will be treated as an accelerated vesting on the cancellation day, and theunconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the non-vesting conditionsbut fails to meet within the waiting period, it shall be treated as cancellation of equity-settled share-based payment. However, if anew equity instrument is granted and it is determined on the date of grant of the new equity instrument that the new equityinstrument granted is used to replace the cancelled equity instrument, the granted substitute equity instruments shall be treated inthe same way as the modification of the original equity instrument terms and conditions.
(2) Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liability calculated and determined on the basis of sharesor other equity instruments undertaken by the Company. If it’s vested immediately after the grant, the fair value of the liabilityassumed on the date of the grant is included in the cost or expense, and the liability is increased accordingly. If the service withinthe waiting period is completed or the specified performance conditions are met, the service obtained in the current period shall beincluded in the relevant costs or expenses based on the best estimate of the vesting situation within the waiting period and the fairvalue of the liability assumed to increase the corresponding liability. On each balance sheet date and settlement date before thesettlement of the relevant liability, the fair value of the liability is remeasured, and the changes are included in the current profitand loss.
31. Revenue
(1) Accounting policies used in revenue recognition and measurement
1) Revenue recognition principle
On the starting date of the contract, the Company evaluates the contract, identifies each individual performance obligationcontained in the contract, and determines whether each individual performance obligation is performed within a certain period oftime or at a certain point in time.When one of the following conditions is met, it belongs to the performance obligation within a certain period of time, otherwise, itbelongs to the performance obligation at a certain point in time: ① The customer obtains and consumes the economic benefitsbrought by the Company's performance while the Company performs the contract; ② The customer can control the goods orservices in progress during the Company’s performance; ③ The goods or services produced during the Company’s performancehave irreplaceable uses, and the Company has the right to collect payment for the performance part that has been completed so farduring the entire contract period.For performance obligations performed within a certain period of time, the Company recognizes revenue in accordance with theperformance progress during that period. When the performance progress cannot be reasonably determined, if the cost incurred isexpected to be compensated, the revenue shall be recognized according to the amount of the cost incurred until the performanceprogress can be reasonably determined. For performance obligations performed at a certain point in time, revenue is recognized atthe point when the customer obtains control of the relevant goods or services. When judging whether the customer has obtainedcontrol of the goods, the Company considers the following signs: ① The Company has the current right to receive payment for the
goods, that is, the customer has the current payment obligation for the goods; ② The Company has transferred the legal ownershipof the goods to the customer, that is, the customer has the legal ownership of the goods; ③ The Company has transferred thegoods to the customer in kind, that is, the customer has physically taken possession of the goods; ④ The Company has transferredthe main risks and rewards of the ownership of the goods to the customer, that is, the customer has obtained the main risks andrewards of the ownership of the goods; ⑤ The customer has received the goods; ⑥ Other signs that the customer has obtainedcontrol of the goods.
2) Revenue measurement principle
①The Company measures revenue based on the transaction price allocated to each individual performance obligation. Thetransaction price is the amount of consideration that the Company expects to be entitled to receive due to the transfer of goods orservices to customers, and does not include payments collected on behalf of third parties and payments expected to be returned tocustomers.
② If there is variable consideration in the contract, the Company shall determine the best estimate of the variable considerationaccording to the expected value or the most likely amount, but the transaction price including the variable consideration shall notexceed the amount of cumulatively recognized revenue that is unlikely to be significantly turned back when the relevantuncertainty is eliminated.
③ If there is a significant financing component in the contract, the Company shall determine the transaction price based on theamount payable that the customer is assumed to pay in cash when obtaining the control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest method during the contractperiod. On the starting date of the contract, if the Company expects that the customer pays the price within one year after obtainingcontrol of the goods or services, the significant financing components in the contract shall not be considered.
④If the contract contains two or more performance obligations, the Company will allocate the transaction price to each individualperformance obligation based on the relative proportion of the stand-alone selling price of the goods promised by each individualperformance obligation on the starting date of the contract.
(2) The Company's criteria for the recognition of commodity income and specific criteria for the recognition time:
The Company's domestic sales revenue recognition time: The Company shall deliver the goods according to the agreement of theorder, and check with the buyer the goods received and inspected by the buyer from the previous reconciliation date to the currentreconciliation date. After the check by both parties, the risks and rewards shall be transferred to the buyer. The Company shallissue invoices to the buyer according to the varieties, quantities and amounts confirmed by the reconciliation and confirm therealization of sales income on the reconciliation date.The Company's foreign sales revenue recognition time: after the completion of the customs audit, the Company in accordance withthe export date specified in the customs declaration, to confirm the realization of sales revenue.Differences in accounting policies for revenue recognition due to different operating models for the same type of businessNil
32. Government grants
(1) Types
Government grants are transfer of monetary asset or non-monetary asset from the government to the Group at no consideration.Government grants are classified into government grants related to asset and government grants related to income.As for the assistance object not well-defined in government’s documents, the classification criteria for asset-related or income-related grants are as: whether the grants turn to long-term asset due to purchasing for construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is actually can beobtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount received orreceivable. If a government grant is in the form of a transfer of non-monetary asset, the government grant shall be measured at fairvalue and it shall be measured by nominal amount in case the fair value can not be reliably acquired.
(3) Accounting treatment
The government grant related to an asset shall be recognized as deferred income, and reckoned into current gain/loss according tothe depreciation process in use life of such asset.The government grant related to income which is used to make up relevant expenses and loss for later period shall be recognizedas deferred income, and be reckoned into current gain/loss during the period while relevant expenses are recognized; Thegovernment grant related to income which is used to make up relevant expenses and loss that occurred shall be reckoned intocurrent gain/loss.The government grant related to daily operation activity of the Company should be reckoned into other income; those withoutrelated to daily operation activity should be reckoned into non-operation income and expenses.The financial discount funds received by the Company shall be used to write down relevant borrowing costs.
33. Deferred income tax asset/Deferred income tax liability
The Company adopts the balance sheet debt method to calculate deferred income tax based on the temporary difference betweenthe book value and tax basis of asset and liability on the balance sheet date, as well as the temporary difference between the bookvalue and tax basis of items that have not been recognized as asset and liability but can be determined according to tax laws.All types of taxable temporary differences are recognized as deferred income tax liability, unless: ① taxable temporary differencesarise in the following transactions: initial recognition of goodwill, or initial recognition of asset or liability arising from a singletransaction with the following characteristics: the transaction is not a business merger. When the transaction occurs, it neitheraffects accounting profits nor taxable income or deductible loss, and the initially recognized asset and liability do not result inequal taxable temporary differences and deductible temporary differences; ② For taxable temporary differences related toinvestments in subsidiaries, joint ventures, and associates, the timing of the reversal of such temporary differences can becontrolled, and it is likely that such temporary differences will not be reversed in the foreseeable future.For deductible temporary differences that can be carried forward deductible loss in future years or deduce taxes, the Companyrecognizes deferred income tax asset based on the future taxable income that is likely to be obtained to offset the deductibletemporary differences, deductible loss, and tax deductions that can be carried forward to future years, unless: ① the deductibletemporary differences arise from a single transaction that is not a business merger. The transaction does not affect accountingprofits or taxable income or deductible loss at the time of occurrence, and the initially recognized asset and liability do not result inequivalent taxable temporary differences or deductible temporary differences. ② For deductible temporary differences related toinvestments in subsidiaries, joint ventures, and associates, such temporary differences are likely to be reversed in the foreseeablefuture and are likely to receive taxable income to be used to offset such temporary differences.On the balance sheet date, the Company measures deferred income tax asset and liability in accordance with tax laws andregulations, at the applicable tax rate during the expected period of asset recovery or liability settlement, and reflects the taximpact of the expected method of asset recovery or liability settlement on the balance sheet date.On the balance sheet date, the Company reviews the book value of deferred income tax asset. If it is likely that sufficient taxableincome will not be available in the future to offset the benefits of deferred income tax asset, the book value of deferred income taxasset will be written down. On the balance sheet date, the Company reassesses unconfirmed deferred income tax asset andrecognizes deferred income tax asset to the extent that sufficient taxable income is likely to be available for the reversal of all orpart of the deferred income tax asset.When the following conditions are met simultaneously, deferred income tax asset and deferred income tax liability is presented atthe net amount after offsetting: having the legal right to settle current income tax asset and current income tax liability at the net
amount; Deferred income tax asset and deferred income tax liability is related to the income tax levied by the same tax collectionand management department on the same taxable entity or on different taxpayers. However, in the period during which significantdeferred income tax asset and deferred income tax liability is reversed in the future, the involved taxpayers intend to settle thecurrent income tax asset and liability on a net basis or acquire asset and settle debts simultaneously.
34. Lease
(1) The Company as lessee
On the commencement date of the lease term, the Company recognizes leases with a lease term not exceeding 12 months andexcluding purchase options as short-term leases; Leases with lower value when a single leased asset is considered a brand newasset is recognized as low value asset leases.If the Company subleases or expects to sublease leased asset, the original lease is not recognized as a low value asset lease.For all short-term leases and low value asset leases, the Company recognizes lease payments in the relevant asset cost or currentprofit and loss on a straight-line basis during each period of the lease term.Except for the simplified short-term leases and low value asset leases mentioned above, the Company recognizes the right-of-useasset and lease liability for leases on the commencement date of the lease term.
1) Right-of-use asset
The right-of-use asset refers to the right of the lessee to use the leased asset during the lease term.On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This cost includes:
①The initial measurement amount of lease liability; ②If the lease payment is made on or before the start date of the lease termand the relevant amount of the lease incentive already enjoyed shall be deducted in case there is a lease incentive; ③The initialdirect expenses incurred by the lessee; ④The expected cost incurred by the lessee in dismantling and removing the leased asset,restoring the site where the leased asset is located, or restoring the leased asset to the state agreed upon in the lease terms. TheCompany recognizes and measures the cost in accordance with the recognition standards and measurement methods for estimatedliability, as detailed in Note V-29 “Accrued liability”. The aforementioned costs incurred for the production of inventory will beincluded in the inventory cost.The depreciation of right-of-use asset is classified and provisioned with the straight-line method. In case it can reasonablydetermine that ownership of the leased asset will be obtained upon the expiration of the lease term, the depreciation rate shall bedetermined based on the category of the right-of-use asset and the estimated net residual value rate within the expected remaininguseful life of the leased asset; In case it cannot reasonably determine that ownership of the leased asset will be acquired upon theexpiration of the lease term, the depreciation rate shall be determined based on the category of the right-of-use asset during theshorter of the lease term and the remaining useful life of the leased asset.
2) Lease liability
Lease liability shall be initially measured at the present value of the lease payments that have not yet been paid on thecommencement date of the lease term. The lease payment amount includes the following five items: ① fixed payment amount andsubstantial fixed payment amount. If there is a lease incentive, the relevant amount of the lease incentive shall be deducted; ②Variable lease payments depending on index or ratio; ③ The exercise price of the purchase option, provided that the lesseereasonably determines that the option will be exercised; ④ The amount to be paid for exercising the option to terminate the lease,provided that the lease term reflects that the lessee will exercise the option to terminate the lease; ⑤ The expected amount to bepaid based on the residual value of the guarantee provided by the lessee.When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If theinterest rate implicit in the lease cannot be determined, the Company’s incremental borrowing rate is used as the discount rate. TheCompany calculates the interest expense of the lease liability in each period of the lease term according to the fixed periodicinterest rate, and includes it in the current profit and loss, unless it is otherwise stipulated to be included in the cost of the relevant
asset. Variable lease payments that are not included in the measurement of lease liability is included in the current profit and losswhen they are actually incurred, unless otherwise stipulated to be included in the cost of the relevant asset.After the commencement date of the lease term, when there is a change in the in-substance fixed payment, or a change in theestimated amount payable for the guaranteed residual value, or a change in the index or ratio used to determine the lease payment,or a change in the evaluation results of the purchase option, renewal option or termination option or when the actual exercisesituation changes, the Company shall re-measure the lease liability according to the present value of the changed lease payments.
(2) The Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost all the risks andrewards related to the ownership of the leased asset as financial leases, and all other leases are operating leases.
1) Operating lease
During each period of the lease term, the lease receipts is recognized by the Company as rental income with straight-line method,and the initial direct expenses incurred are capitalized, amortized on the same basis as the recognition of rental income, andincluded in the current profit and loss by stages. The variable lease payments obtained by the Company related to operating leasesthat are not included in the lease receipts are booked in the current profits and loss when actually incurred.
2) Finance lease
On the beginning date of the lease term, the financial lease receivables is recognized by the Company according to the net amountof the lease investment (the sum of the unsecured residual value and the present value of the lease collection not received on thebeginning date of the lease term discounted according to the embedded interest rate of the lease), and terminates the recognition ofthe financial lease asset. During each period of the lease term, the Company calculates and recognizes the interest incomeaccording to the interest rate embedded in the lease. The amount of variable lease payments obtained by the Company that are notincluded in the measurement of net lease investment shall be included in the current profit and loss when actually incurred.
35. Other major accounting policy and estimation
Nil
36. Changes of important accounting policies and estimation
(1) Changes of important accounting policies
□Applicable ?Not applicable
(2) Changes of important accounting estimation
□Applicable ? Not applicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2024, andimplementation of relevant financial statement items at the beginning of the year for the first time
□Applicable ?Not applicable
37. Others
Nil
VI. Taxation
1. Major taxes and tax rates
| Tax | Basis | Tax rate |
| VAT | The output tax is calculated based on the taxable income, and VAT is calculated based on the difference after deducting the input tax available for deduction for the current period | 25%(IRD,Denmark), 22%(VHIO，Italy),21%(Borit,Belgium), 13%, 9%, 6%, Collection rate 5% |
| City maintaining & construction tax | Turnover tax payable | 7%,5% |
| Corporation income tax | Taxable income | 15%, 20%,21% , 22%, 25%, 24% + region tax 3.9% |
| Educational surtax | Turnover tax payable | 5% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
| The Company, WFJN, WFLD, WFTT, WFAM, WFSC, WFLD(Chongqing) | 15% |
| WFLD(Wuhan), WFLD(Nanchang) | 20% |
| IRD America, Borit America | 21% |
| IRD(Denmark)) | 22% |
| WFCA, WFTR, WFDT, WFQL, VHWX,WFAS, Borit(Belgium), WFLH, WFSS | 25% |
| VHIO(Italy) | 24% + region tax 3.9% |
2. Tax incentives
The Company, WFJN, WFLD, WFTT, WFMA, WFAM and WFSC are high-tech enterprises and enjoy a preferential income taxrate of 15% in 2024.According to the “Continuation of the Enterprise Income Tax Policies for Western Development” No.23 (Year of 2020) issuedtogether by Ministry of Finance, SAT and NDRC, from January 1, 2011 to December 31, 2030, the enterprises located in the westregion and mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industries in Western China,and whose main business income accounting for more than 60% of the total income of the enterprise in the current year can paythe corporate income tax at the tax rate of 15%. In 2024, WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2024, WFLD(Wuhan) and WFLD(Nanchang) meet the standards for small and micro profit enterprises. According to the“Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual Industrial andCommercial Households Related No.2023), the taxable income of small and micro profit enterprises will be reduced by 25%, andthe enterprise income tax policy will be paid at a rate of 20%, which will continue to be implemented until December 31, 2027.
3. Other
Nil
VII. Notes to major items in consolidated financial statements
1. Monetary funds
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 3,066.79 | 6,343.24 |
| Cash in bank | 2,583,949,629.11 | 2,241,980,351.17 |
| Other monetary funds | 142,007,827.59 | 32,785,004.73 |
| Total | 2,725,960,523.49 | 2,274,771,699.14 |
| Including: total amount of funds deposited overseas | 137,129,527.39 | 126,839,309.52 |
Other explanationThe ending balance of other monetary funds includes bank acceptance bill deposit 128,231,135.19 yuan, cash deposit forMastercard 204,620.00 yuan, in-transit dividends 1,309,380.00, IRD performance bond 7,673,250.00 yuan, the in-transit funds4,585,442.40, ETC frozen amount of 4,000.00 yuan. The in-transit dividends 1,309,380.00 yuan was a portion of the dividenddistributed by Miracle Automation (002009), a trading financial asset held by the Company, from 2017 to 2023, which was nottransferred to the Company’s current account due to account issues.
2. Trading financial asset
In RMB
| Item | Ending balance | Opening balance |
| Financial asset measured at fair value and whose changes are included in current profit or loss | 1,431,717,057.05 | 2,391,487,144.96 |
| Including: | ||
| SNAT | 42,599,328.00 | 76,756,716.00 |
| Miracle Automation | 53,411,400.00 | 71,073,900.00 |
| Other debt and equity instrument investments | 1,335,706,329.05 | 2,243,656,528.96 |
| Including： | ||
| Total | 1,431,717,057.05 | 2,391,487,144.96 |
3. Note receivable
(1) Classification of notes receivable
In RMB
| Item | Ending balance | Opening balance |
| Trade acceptance bill | 111,953,406.82 | 144,976,174.84 |
| Total | 111,953,406.82 | 144,976,174.84 |
(2) Accrued of bad debt provision
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book value | Provision for bad debts | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Including: | ||||||||||
| Note receivable with provision for bad debts accrual on portfolio | 111,953,406.82 | 100.00% | 111,953,406.82 | 144,976,174.84 | 100.00% | 144,976,174.84 | ||||
| Including: | ||||||||||
| Portfolio 1: bank acceptance bill | ||||||||||
| Portfolio 2: trade acceptance bill | 111,953,406.82 | 100.00% | 111,953,406.82 | 144,976,174.84 | 100.00% | 144,976,174.84 | ||||
| Total | 111,953,406.82 | 100.00% | 111,953,406.82 | 144,976,174.84 | 100.00% | 144,976,174.84 |
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit loss, please referto the disclosure of other receivables to disclose related information about bad-debt provisions:
□Applicable ?Not applicable
(3) Provision for bad debts accrual, collected or reversal
Provision for bad debts in the current period:
□ Applicable ? Not applicable
(4) Notes receivable already pledged by the Company at the end of the reporting period
□ Applicable ? Not applicable
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Note receivable actually written-off in the reporting period
Nil
4. Account receivable
(1) By account age
In RMB
| Aging | Ending book balance | Opening book balance |
| Within one year (One year included) | 3,700,686,063.72 | 3,841,921,162.54 |
| Including: within 6 months | 3,595,955,390.16 | 3,732,178,445.50 |
| 6 months to one year | 104,730,673.56 | 109,742,717.04 |
| 1-2 years | 25,537,095.82 | 26,336,964.64 |
| 2-3 years | 8,072,765.00 | 13,723,160.78 |
| Over 3 years | 27,830,761.56 | 57,510,391.30 |
| 3-4 years | 5,588,622.65 | 5,607,074.80 |
| 4-5 years | 3,775,810.94 | 19,615,877.12 |
| > 5 years | 18,466,327.97 | 32,287,439.38 |
| Total | 3,762,126,686.10 | 3,939,491,679.26 |
(2) Accrued of bad debt provision
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
| Amount | Ratio | Amount | Accrued ratio | Amount | Ratio | Amount | Accrued ratio | |||
| Account receivable with bad debt provision accrued on a single basis | 20,428,693.63 | 0.54% | 20,428,693.63 | 100.00% | 53,281,843.03 | 1.35% | 53,281,843.03 | 100.00% | ||
| Including: | ||||||||||
| Account receivable with bad debt provision accrued on portfolio | 3,741,697,992.47 | 99.46% | 28,739,345.58 | 0.77% | 3,712,958,646.89 | 3,886,209,836.23 | 98.65% | 28,669,878.03 | 0.74% | 3,857,539,958.20 |
| Including: | ||||||||||
| Total | 3,762,126,686.10 | 100.00% | 49,168,039.21 | 1.31% | 3,712,958,646.89 | 3,939,491,679.26 | 100.00% | 81,951,721.06 | 2.08% | 3,857,539,958.20 |
Bad debt provision accrued on single basis:
In RMB
| Name | Opening balance | Ending balance | ||||
| Book balance | Bad debt reserve | Book balance | Bad debt reserve | Accrued ratio | Accrued causes | |
| Hubei Meiyang Auto Industry Co., Ltd. | 17,610,371.91 | 17,610,371.91 | ||||
| Hunan Leopaard Auto Co., Ltd. | 8,077,361.13 | 8,077,361.13 | ||||
| BD bills | 4,270,595.02 | 4,270,595.02 | ||||
| Linyi Zotye Automobile Components Manufacturing Co., Ltd. | 6,193,466.77 | 6,193,466.77 | 6,193,466.77 | 6,193,466.77 | 100.00% | Difficult to receive |
| Tongling Ruineng Purchasing Co., Ltd. | 4,320,454.34 | 4,320,454.34 | 4,320,454.34 | 4,320,454.34 | 100.00% | Difficult to receive |
| Brilliance Automotive Group Holdings Co., Ltd. | 3,469,091.33 | 3,469,091.33 | 2,693,280.39 | 2,693,280.39 | 100.00% | Difficult to receive |
| Dongfeng Chaoyang Diesel Co., Ltd. | 1,823,262.64 | 1,823,262.64 | 1,823,262.64 | 1,823,262.64 | 100.00% | Difficult to receive |
| Jiangsu Kawei Auto Industrial Group Co., Ltd. | 1,932,476.26 | 1,932,476.26 | ||||
| Jiangsu Jintan Automobile Industry Co., Ltd. | 1,059,798.43 | 1,059,798.43 | 1,059,798.43 | 1,059,798.43 | 100.00% | Difficult to receive |
| Tianjin Levol Engine Co., Ltd. | 1,018,054.89 | 1,018,054.89 | 1,018,054.89 | 1,018,054.89 | 100.00% | Difficult to receive |
| Other clients | 3,506,910.31 | 3,506,910.31 | 3,320,376.17 | 3,320,376.17 | 100.00% | Difficult to receive |
| Total | 53,281,843.03 | 53,281,843.03 | 20,428,693.63 | 20,428,693.63 | ||
Bad debt provision accrued on portfolio:
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt reserve | Accrued ratio | |
| Within 6 months | 3,595,955,390.16 | ||
| 6 months to one year | 101,922,134.50 | 10,192,213.44 | 10.00% |
Explanation on determining the basis for this portfolio: NilThe provision for bad debts of accounts receivable is made in accordance with the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
| Category | Opening balance | Amount changed in the reporting period | Ending balance | |||
| Accrued | Collected or reversal | Charged off | Other | |||
| Bad debt provision | 81,951,721.06 | 6,592,185.53 | 10,948,516.61 | 28,343,673.25 | -83,677.52 | 49,168,039.21 |
| Total | 81,951,721.06 | 6,592,185.53 | 10,948,516.61 | 28,343,673.25 | -83,677.52 | 49,168,039.21 |
Significant amount of bad debt provision accrued collected or reversal in current period: Nil
(4) Account receivable actually charged off in the reporting period
In RMB
| Item | Amount charged off |
| Account receivable actually charged off | 28,343,673.25 |
Major account receivable charged off:
In RMB
| Name | Feature of account receivable | Amount charged off | Reason charged off | Charged off procedures implemented | Generated by related transaction?(Y/N) |
| Hubei Meiyang Auto Industry Co., Ltd. | Intercourse funds of unit | 17,313,155.08 | Uncollectible | Approved by the Company | N |
| Hunan Leopaard Auto Co., Ltd. | Intercourse funds of unit | 8,003,712.40 | Uncollectible | Approved by the Company | N |
| Jiangsu Kawei Auto Industrial Group Co., Ltd. | Intercourse funds of unit | 1,932,476.26 | Uncollectible | Approved by the Company | N |
| Chongqing Zotye Auto Co., Ltd. | Intercourse funds of unit | 713,685.08 | Uncollectible | Approved by the Company | N |
| Huachen Renault Jinbei Automobile Co., Ltd | Intercourse funds of unit | 342,016.43 | Uncollectible | Approved by the Company | N |
| BAIC Ruili Auto Co., Ltd | Intercourse funds of unit | 38,628.00 | Uncollectible | Approved by the Company | N |
| Total | 28,343,673.25 |
Explanation on reason charged off: Nil
(5) Top five receivables and contract asset at ending balance by arrears party
In RMB
| Name | Ending balance of account receivable | Ending balance of contract asset | Ending balance of account receivable and contract asset | Ratio in total ending balance of account receivables and contract asset | Ending balance of reserve for bad debts and contract asset |
| RBCD | 732,084,006.85 | 732,084,006.85 | 19.46% | 1,170,780.48 | |
| Bosch | 543,715,050.47 | 543,715,050.47 | 14.45% | 2,251,804.00 |
1-2 years
| 1-2 years | 25,537,095.82 | 5,107,419.15 | 20.00% |
| 2-3 years | 8,072,765.00 | 3,229,106.00 | 40.00% |
| Over 3 years | 10,210,606.99 | 10,210,606.99 | 100.00% |
| Total | 3,741,697,992.47 | 28,739,345.58 |
| Client 3 | 273,870,906.47 | 273,870,906.47 | 7.28% | 399,249.28 | |
| Client 4 | 214,791,670.34 | 214,791,670.34 | 5.71% | 77,024.49 | |
| Client 5 | 127,659,519.67 | 127,659,519.67 | 3.39% | 759,318.12 | |
| Total | 1,892,121,153.80 | 1,892,121,153.80 | 50.29% | 4,658,176.37 |
5. Receivable financing
(1) Category of receivable financing
In RMB
| Item | Ending balance | Opening balance |
| Bill receivable- bank acceptance bill | 1,861,606,949.90 | 1,661,749,949.46 |
| Total | 1,861,606,949.90 | 1,661,749,949.46 |
Other explanation:
In the process of managing the liquidity of the Company, some bills will be discounted or endorsed for transfer before maturity.The business model of managing accounts receivable aims to collect contractual cash flows and sell the financial asset, so it isclassified as a financial asset measured at fair value with changes recognized in other comprehensive income and listed in accountsreceivable financing.
(2) Accrued of bad debt provision
Basis for division of each stage and provision ratio for bad debt provisionNilExplanation of significant changes in the financing book balance of accounts receivable with changes in loss provisions in thecurrent period:
Nil
(3) Bad debt provision accrued, collected or reversal
Other explanation: Nil
(4) Receivable financing already pledged by the Company at period-end
In RMB
| Item | Amount pledge at period-end |
| Bank acceptance bill | 897,650,012.34 |
| Total | 897,650,012.34 |
(5) Notes endorsement or discount and undue on balance sheet date
| Item | Amount derecognized at period-end | Amount not derecognized at period-end |
| Bank acceptance bill | 616,663,285.46 | |
| Trade acceptance bill | ||
| Total | 616,663,285.46 |
(6) Receivable financing actually charged off in current period
Nil
(7) Increase/decrease of receivable financing and changes in fair value of receivable financing in currentperiodNil
(8) Other explanation
Nil
6. Other account receivables
In RMB
| Item | Ending balance | Opening balance |
| Dividend receivable | 872,701,558.93 | |
| Other account receivables | 922,853,004.63 | 919,684,126.81 |
| Total | 1,795,554,563.56 | 919,684,126.81 |
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrued of bad debt provision
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Interest receivable actually charged off in current period
Nil
(2) Dividend receivable
1) Category of dividend receivable
In RMB
| Item (or invested enterprise) | Ending balance | Opening balance |
| WFEC | 73,500,000.00 | |
| RBCD | 527,829,600.44 | |
| Zhonglian Electronics | 266,000,000.00 | |
| WFPM | 5,357,758.49 | |
| Guolian Securities | 14,200.00 | |
| Total | 872,701,558.93 |
2) Important dividend receivable with account age over one year
Nil
3) Accrued of bad debt provision
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal in current period
Nil
5) Dividend receivable actually charged off in current period
Nil
(3) Other accounts receivable
1) By nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Intercourse funds from units | 4,161,124.36 | 4,084,594.65 |
| Cash deposit | 14,157,787.09 | 10,215,094.41 |
| Staff loans and petty cash | 1,540,213.27 | 904,305.07 |
| Social security and provident fund paid | 11,755,472.65 | 12,537,832.68 |
| WFTR “platform trade” business portfolio | 2,542,263,370.70 | 2,542,263,370.70 |
| Other | 163,015.67 | 38,770.10 |
| Total | 2,574,040,983.74 | 2,570,043,967.61 |
2) By aging
In RMB
| Aging | Ending book balance | Opening book balance |
| Within one year (One year included) | 22,674,290.11 | 18,850,121.91 |
| Within 6 months | 20,991,997.44 | 18,448,595.63 |
| 6 months to one year | 1,682,292.67 | 401,526.28 |
| 1-2 years | 2,004,023,844.14 | 2,544,896,026.07 |
| 2-3 years | 541,416,353.54 | 954,984.11 |
| Over 3 years | 5,926,495.95 | 5,342,835.52 |
| 3-4 years | 4,843,422.94 | 4,524,432.51 |
| 4-5 years | 1,026,000.00 | 801,603.01 |
| Over 5 years | 57,073.01 | 16,800.00 |
| Total | 2,574,040,983.74 | 2,570,043,967.61 |
3) Accrued bad debt provision
?Applicable □Not applicableExpected credit loss general model for provision of bad debt reserves:
In RMB
| Bad debt reserve | Phase I | Phase II | Phase III | Total |
| Expected credit loss over next 12 months | Expected credit loss for the entire duration (without credit impairment occurred) | Expected credit loss for the entire duration (with credit impairment occurred) | ||
| Balance on Jan. 1, 2024 | 6,259,786.07 | 1,644,100,054.73 | 1,650,359,840.80 | |
| Balance of Jan. 1, 2024 in the reporting period | ||||
| Current accrued | 865,695.62 | 865,695.62 | ||
| Other changes | -37,557.31 | -37,557.31 | ||
| Balance on June 30, 2024 | 7,087,924.38 | 1,644,100,054.73 | 1,651,187,979.11 |
Changes in book balance with significant changes in the amount of loss provision for the current period
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
| Category | Opening balance | Change in current period | Ending balance | |||
| Accrued | Collected or reversal | Charged off | Other | |||
| Bad debt provision | 1,650,359,840.80 | 865,695.62 | -37,557.31 | 1,651,187,979.11 | ||
| Total | 1,650,359,840.80 | 865,695.62 | -37,557.31 | 1,651,187,979.11 | ||
Major bad debt provision collected or reversal in current period: Nil
5) Other accounts actually charged off during the reporting period
Nil
6) Top 5 other accounts receivable at ending balance by arrears party
In RMB
| Enterprise | Nature | Ending balance | Aging | Ratio in total ending balance of other | Ending balance of bad debt reserve |
| accounts receivables | |||||
| WFTR “platform trade” business portfolio | See “Other explanations” | 2,542,263,370.70 | 1-3 years | 98.77% | 1,644,068,327.93 |
| BYD | Deposit margin | 3,800,000.00 | Within 1 year | 0.15% | 130,000.00 |
| Bosch | Prepaid freight | 2,255,998.16 | Within 6 months | 0.09% | |
| Wuxi China Resources Gas Co. LTD | Deposit margin | 1,364,750.00 | Over 3 years | 0.05% | 1,364,750.00 |
| Zhenkunxing Industrial Supermarket (Shanghai) Co., LTD | Deposit margin | 1,000,000.00 | Over 3 years | 0.04% | 1,000,000.00 |
| Total | 2,550,684,118.86 | 99.10% | 1,646,563,077.93 |
Other explanations: For details of WFTR “platform trade” business portfolio, please refer to the description in Note-XVIII, 7 “OtherSignificant Transactions and Matters Affecting Investors' Decisions”. The ending balance of WFTR’s “platform trade” businessportfolio balance include the balance of other receivables listed in Note-XIV. 6(3).
7) Listed as other receivables due to centralized fund management
Nil
7. Account paid in advance
(1) By aging
In RMB
| Aging | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 58,024,453.83 | 73.22% | 56,627,071.44 | 74.31% |
| 1-2 years | 17,294,579.76 | 21.82% | 17,692,490.92 | 23.22% |
| 2-3 years | 3,086,343.65 | 3.89% | 1,879,201.90 | 2.47% |
| Over 3 years | 850,383.87 | 1.07% | 3,506.90 | |
| Total | 79,255,761.11 | 76,202,271.16 | ||
Explanation of the reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timelymanner: Nil
(2) Top 5 accounts paid in advance at ending balance by prepayment object
In RMB
8. Inventory
Does the Company need to comply with disclosure requirements in the real estate industry?
| Name | Ending amount of accounts paid in advance | Proportion in total ending amount of accounts paid in advance(%) |
| Huitian Engineering Technology Co., Ltd | 9,206,995.00 | 11.62 |
| State Grid Jiangsu Electric Power Co., Ltd. Wuxi Power Supply Branch | 5,427,291.39 | 6.85 |
| CITIC Pacific Special Steel | 3,952,615.17 | 4.99 |
| Daye Special Steel Co., Ltd | 3,730,243.90 | 4.71 |
| Xiangyang Kanghao Electromechanical Engineering Co., Ltd | 3,509,743.08 | 4.43 |
| Total | 25,826,888.54 | 32.60 |
No
(1) Category of inventory
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Inventory depreciation reserve or provision for impairment of contract performance costs | Book value | Book balance | Inventory depreciation reserve or provision for impairment of contract performance costs | Book value | |
| Stock materials | 568,970,143.87 | 104,597,883.89 | 464,372,259.98 | 590,057,187.69 | 116,560,014.49 | 473,497,173.20 |
| Goods in process | 453,226,811.99 | 35,517,165.28 | 417,709,646.71 | 463,097,639.20 | 30,595,290.34 | 432,502,348.86 |
| Finished goods | 1,147,406,654.19 | 137,658,963.27 | 1,009,747,690.92 | 1,336,512,057.06 | 173,978,548.18 | 1,162,533,508.88 |
| Total | 2,169,603,610.05 | 277,774,012.44 | 1,891,829,597.61 | 2,389,666,883.95 | 321,133,853.01 | 2,068,533,030.94 |
(2) Data resource defined as inventory
Nil
(3) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
| Item | Opening balance | Current increase | Current decrease | Ending balance | ||
| Accrued | Translation of foreign currency statements | Reversal or write-off | Other | |||
| Stock materials | 116,560,014.49 | 22,237,479.58 | -376,357.67 | 33,823,252.51 | 104,597,883.89 | |
| Goods in process | 30,595,290.34 | 9,727,439.89 | -323,483.61 | 4,482,081.34 | 35,517,165.28 | |
| Finished goods | 173,978,548.18 | 34,838,359.63 | -140,087.94 | 71,017,856.60 | 137,658,963.27 | |
| Total | 321,133,853.01 | 66,803,279.10 | -839,929.22 | 109,323,190.45 | 277,774,012.44 | |
① The net realizable value of inventory refers to the estimated selling price of inventory in daily activities, minus the estimated coststo be incurred until completion, estimated sales expenses, and related taxes.
② Accrued basis for inventory depreciation reserve:
| Cash on hand | Accrued basis for inventory impairment provision | Specific basis for recognition |
| Materials in stock | 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
| Finished goods | its net realizable value is lower than the book value | Results from the amount based on the estimated selling price minus the various taxes and fees that need to be borne during the sales process |
③ Reasons of inventory depreciation reserves written off in current period:
| Cash on hand | Reasons of written off |
| Materials in stock | Used for production and the finished goods are realized sales |
| Goods in process | Goods in process completed in the the reporting period and corresponding finished goods are realized sales in the reporting period |
| Finished goods | Sales in the the reporting period |
(4) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(5) Explanation of the current amortization amount of contract performance costNil
(6) Other credit investment maturing within one year
Nil
9. Other current asset
In RMB
| Item | Ending balance | Opening balance |
| Receivable export tax rebates | 9,234,636.96 | 9,103,488.70 |
| VAT refund receivable | 66,459,355.67 | 114,079,600.14 |
| Prepaid taxes and VAT retained | 140,545,153.29 | 173,908,288.11 |
| Input tax to be deducted and certification | 15,111.22 | 2,162,292.69 |
| Other | 22,054,861.33 | 26,655,713.47 |
| Total | 238,309,118.47 | 325,909,383.11 |
10. Other equity instrument investment
In RMB
| Item | Opening balance | Gain recognized in other comprehensive income for the current period | Loss recognized in other comprehensive income for the current period | Accumulated gain recognized in other comprehensive income at the end of this period | Accumulated loss recognized in other comprehensive income at the end of this period | Dividend income recognized in this period | Ending balance | Reasons for designating fair value measurement with changes recognized in other comprehensive income |
| Wuxi Xichang Microchip Semi-Conductor | 592,742,690.00 | 592,742,690.00 | Non-trading equity instrument investments | |||||
| Other | 85,048,000.00 | 85,048,000.00 | Non-trading equity instrument investments | |||||
| Total | 677,790,690.00 | 677,790,690.00 |
There are items derecognized in current period: NilSub-item disclosure of current non-trading equity instrument investments
In RMB
| Item | Dividends income | Accumulated gain | Accumulated loss | Amount of other comprehensive income transferred to retained earnings | Reasons for defining fair value measurement with changes recognized in other comprehensive income | Reasons for transferring other comprehensive income to retained earnings |
| Wuxi Xichan Microchip Semi-Conductor | Non-trading equity instrument investments | Not applicable |
| Other | Non-trading equity instrument investments | Not applicable |
Other explanation: Nil
11. Long-term equity investment
In RMB
| Invested entity | Opening balance (book value) | Opening balance of depreciation reserve | Current changes (+/ -) | Ending balance (book value) | Ending balance of depreciation reserves | |||||||
| Additional investment | Capital reduction | Investment gain/loss recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Depreciation reserves accrued | Other | |||||
| I. Joint venture | ||||||||||||
| II. Associated enterprise | ||||||||||||
| WFEC | 915,511,847.44 | 108,675,061.86 | 1,092,647.52 | 122,500,000.00 | 902,779,556.82 | |||||||
| RBCD | 3,015,307,291.83 | 383,623,493.62 | 527,829,600.44 | 2,871,101,185.01 | ||||||||
| Zhonglian Electronic | 1,685,502,046.73 | 250,991,619.50 | 266,000,000.00 | 1,670,493,666.23 | ||||||||
| WFPM | 41,464,195.65 | 1,804,466.43 | 783,350.57 | 5,357,758.49 | 38,694,254.16 | |||||||
| Changchun Xuyang | 9,082,823.79 | -335,570.17 | 8,747,253.62 | |||||||||
| Precors | 8,587,489.62 | 2,064,785.86 | -224,203.48 | 10,428,072.00 | ||||||||
| Autolink | 182,680,857.61 | -2,504,187.11 | -1,221,900.39 | 178,954,770.11 | ||||||||
| Lezhuo Bowei | 89,496,954.40 | 110,000,000.00 | -13,695,432.42 | 185,801,521.98 | ||||||||
| Zhuowei Times | 27,300,000.00 | -29,167.83 | 27,270,832.17 | |||||||||
| Subtotal | 5,947,633,507.07 | 137,300,000.00 | 730,595,069.74 | 654,097.70 | 921,687,358.93 | -224,203.48 | 5,894,271,112.10 | |||||
| Total | 5,947,633,507.07 | 137,300,000.00 | 730,595,069.74 | 654,097.70 | 921,687,358.93 | -224,203.48 | 5,894,271,112.10 | |||||
Note: Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. was renamed into Wuxi Weifu Precision MachineryManufacturing Company Limited on Feburary 28, 2024.Explanation on those holding less than 20% of the voting rights but with significant influence:
(1) Autolink
The Company holds 9.6372% equity of Autolink, and appointed a director to Autolink. Though the representative, the Companycan participate in the operation policies formulation of Autolink, and thus exercise a significant influence over Autolink.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used inprevious years' impairment testing
NilReasons for significant discrepancies between the information used in the Company's previous annual impairment tests and theactual situation of the current yearNilOther explanation: Nil
12. Other non-current financial asset
In RMB
| Item | Ending balance | Opening balance |
| Guolian Securities | 964,000.00 | 1,084,000.00 |
| Investments in other debt instruments and equity instruments held for more than one year | 668,636,925.15 | 803,266,120.06 |
| Total | 669,600,925.15 | 804,350,120.06 |
13. Investment real estate
(1) Investment real estate measured by cost
? Applicable □ Not applicable
In RMB
| Item | House and Building | Land use right | Construction in progress | Total |
| I. Original book value | ||||
| 1.Opening balance | 95,327,686.03 | 95,327,686.03 | ||
| 2.Current increased | ||||
| (1) Outsourcing | ||||
| (2) Inventory\fixed asset\construction in process transfer-in | ||||
| (3) Increased by combination | ||||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 95,327,686.03 | 95,327,686.03 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1.Opening balance | 48,400,969.54 | 48,400,969.54 | ||
| 2.Current increased | 1,020,828.04 | 1,020,828.04 | ||
| (1) Accrued or amortization | 1,020,828.04 | 1,020,828.04 | ||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 49,421,797.58 | 49,421,797.58 | ||
| III. Depreciation reserves | ||||
| 1.Opening balance | ||||
| 2.Current increased | ||||
| (1) Accrued | ||||
| 3. Current decreased |
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | ||||
| IV. Book value | ||||
| 1.Ending Book value | 45,905,888.45 | 45,905,888.45 | ||
| 2.Opening Book value | 46,926,716.49 | 46,926,716.49 |
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used inprevious years' impairment testingNilReasons for significant discrepancies between the information used in the Company's previous annual impairment tests and theactual situation of the current yearNilOther explanation: Nil
(2) Investment real estate measured at fair value
□ Applicable ? Not applicable
(3) Converted into investment real estate and measured at fair value
Nil
(4) Investment real estate without property certification held
Nil
14. Fixed asset
In RMB
| Item | Ending balance | Opening balance |
| Fixed asset | 3,958,946,658.33 | 3,969,574,102.87 |
| Total | 3,958,946,658.33 | 3,969,574,102.87 |
(1) Fixed asset
In RMB
| Item | House and Building | Machinery equipment | Transportation equipment | Electronic and other equipment | Land | Total |
| I. Original book value: | ||||||
| 1.Opening balance | 2,032,107,555.67 | 5,006,902,151.83 | 42,039,805.21 | 1,236,400,092.39 | 32,275,299.13 | 8,349,724,904.23 |
| 2.Current increased | 57,656,278.39 | 133,092,401.20 | 870,681.40 | 94,563,468.21 | 286,182,829.20 |
| (1) Purchase | 640,532.17 | 1,074,600.67 | 4,805,357.37 | 6,520,490.21 | ||
| (2) Construction in progress transfer-in | 57,015,746.22 | 132,017,800.53 | 870,681.40 | 89,758,110.84 | 279,662,338.99 | |
| (3)Increased by combination | ||||||
| 3.Current decreased | 11,485.04 | 10,921,862.09 | 1,976,232.74 | 25,843,259.24 | 38,752,839.11 | |
| (1) Disposal or scrapping | 11,485.04 | 10,921,862.09 | 1,976,232.74 | 25,843,259.24 | 38,752,839.11 | |
| 4.Conversion of foreign currency financial statement | -3,502,524.78 | -12,090,911.25 | -2,592.59 | -8,597,274.41 | -811,212.05 | -25,004,515.08 |
| 5.Ending balance | 2,086,249,824.24 | 5,116,981,779.69 | 40,931,661.28 | 1,296,523,026.95 | 31,464,087.08 | 8,572,150,379.24 |
| II. Accumulated depreciation | ||||||
| 1.Opening balance | 605,180,085.15 | 2,741,676,537.83 | 23,008,286.27 | 804,954,516.26 | 4,174,819,425.51 | |
| 2.Current increased | 33,501,759.93 | 137,370,052.50 | 1,782,232.66 | 109,149,642.64 | 281,803,687.73 | |
| (1) Accrued | 33,501,759.93 | 137,370,052.50 | 1,782,232.66 | 109,149,642.64 | 281,803,687.73 | |
| 3.Current decreased | 9,575,434.52 | 1,800,910.65 | 16,972,190.47 | 28,348,535.64 | ||
| (1) Disposal or scrapping | 9,575,434.52 | 1,800,910.65 | 16,972,190.47 | 28,348,535.64 | ||
| 4.Conversion of foreign currency financial statement | -1,528,336.23 | -7,734,899.93 | 134.82 | -6,859,580.90 | -16,122,682.24 | |
| 5.Ending balance | 637,153,508.85 | 2,861,736,255.88 | 22,989,743.10 | 890,272,387.53 | 4,412,151,895.36 | |
| III. Depreciation reserves | ||||||
| 1.Opening balance | 14,920,553.54 | 152,003,807.08 | 73,319.90 | 22,287,693.43 | 16,046,001.90 | 205,331,375.85 |
| 2.Current increased | ||||||
| (1) Accrued | ||||||
| 3.Current decreased | 1,136,541.33 | 382,209.66 | 1,518,750.99 | |||
| (1) Disposal or scrapping | 1,136,541.33 | 382,209.66 | 1,518,750.99 | |||
| 4.Conversion of foreign currency financial statement | -375,015.35 | -1,649,714.31 | -332,767.11 | -403,302.54 | -2,760,799.31 | |
| 5.Ending balance | 14,545,538.19 | 149,217,551.44 | 73,319.90 | 21,572,716.66 | 15,642,699.36 | 201,051,825.55 |
| IV. Book value | ||||||
| 1.Ending Book value | 1,434,550,777.20 | 2,106,027,972.37 | 17,868,598.28 | 384,677,922.76 | 15,821,387.72 | 3,958,946,658.33 |
| 2.Opening Book value | 1,412,006,916.98 | 2,113,221,806.92 | 18,958,199.04 | 409,157,882.70 | 16,229,297.23 | 3,969,574,102.87 |
(2) Temporarily idle fixed asset
Nil
(3) Fixed asset acquired by operating lease
Nil
(4) Fixed asset without property certification held
In RMB
| Item | Book value | Reasons for without the property certification |
| Plant and office building of WFCA | 29,798,747.27 | Still in process of relevant property procedures |
(5) Impairment testing of fixed asset
□Applicable ?Not applicable
(6) Disposal of fixed asset
Nil
15. Construction in progress
In RMB
| Item | Ending balance | Opening balance |
| Construction in progress | 682,829,406.56 | 564,605,931.90 |
| Total | 682,829,406.56 | 564,605,931.90 |
(1) Construction in progress
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Renovation of Xinan Branch, No. 1 workshop of the Company | 217,324,382.16 | 217,324,382.16 | 148,242,724.89 | 148,242,724.89 | ||
| Lot 103 phase VI | 18,559,375.04 | 18,559,375.04 | 7,509,742.36 | 7,509,742.36 | ||
| Production line and equipment under installation and debugging | 427,384,818.52 | 184,615.38 | 427,200,203.14 | 391,286,034.94 | 184,615.38 | 391,101,419.56 |
| Sporadic construction and installation projects | 5,315,167.92 | 5,315,167.92 | 5,265,721.92 | 5,265,721.92 | ||
| Software and system under installation and debugging | 14,430,278.30 | 14,430,278.30 | 12,486,323.17 | 12,486,323.17 | ||
| Total | 683,014,021.94 | 184,615.38 | 682,829,406.56 | 564,790,547.28 | 184,615.38 | 564,605,931.90 |
(2) Changes of major construction in progress
In RMB
| Item | Budget | Opening balance | Current increased | Fixed asset transfer-in in the reporting period | Other decreased in the reporting period | Ending 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 |
| Renovation of Xinan Branch, No. 1 workshop of the Company | 148,242,724.89 | 69,081,657.27 | 217,324,382.16 | 51.40% | 51.40% | Company accumulates funds | ||||||
| Lot 103 phase VI | 7,509,742.36 | 11,049,632.68 | 18,559,375.04 | 23.00% | 23% | Company |
| accumulates funds | ||||||||||||
| Total | 155,752,467.25 | 80,131,289.95 | 235,883,757.20 |
(3) The depreciation reserves of construction in progress
In RMB
| Item | Opening balance | Current increase | Current decrease | Ending balance | Reason for withdrawal |
| Equipment installation | 184,615.38 | 184,615.38 | Equipment debugging acceptance failed | ||
| Total | 184,615.38 | 184,615.38 | -- |
(4) Impairment testing of construction in progress
□Applicable ?Not applicable
(5) Engineering material
Other explanation: Nil
16. Right-of-use asset
(1) Right-of-use asset
In RMB
| Item | Building | Mechanical equipment | Total |
| I. Original book value: | |||
| 1.Opening balance | 54,412,701.74 | 26,999,713.53 | 81,412,415.27 |
| 2.Current increased | 5,999,502.50 | 192,611.06 | 6,192,113.56 |
| (1)Increased lease | 5,999,502.50 | 192,611.06 | 6,192,113.56 |
| 3.Current decreased | 4,207,968.93 | 4,207,968.93 | |
| (1) Disposal | 4,207,968.93 | 4,207,968.93 | |
| 4. Conversion of foreign currency financial statement | -862,246.33 | -487,202.74 | -1,349,449.07 |
| 5.Ending balance | 59,549,957.91 | 22,497,152.92 | 82,047,110.83 |
| II. Accumulated depreciation | |||
| 1.Opening balance | 20,705,961.48 | 11,873,980.94 | 32,579,942.42 |
| 2.Current increased | 5,091,190.84 | 3,098,280.21 | 8,189,471.05 |
| (1) Accrued | 5,091,190.84 | 3,098,280.21 | 8,189,471.05 |
| 3.Current decreased | 4,207,968.93 | 4,207,968.93 | |
| (1) Disposal | 4,207,968.93 | 4,207,968.93 | |
| 4. Conversion of foreign currency financial statement | -208,812.54 | -199,492.82 | -408,305.36 |
| 5.Ending balance | 25,588,339.78 | 10,564,799.40 | 36,153,139.18 |
| III. Depreciation reserves | |||
| 1.Opening balance | |||
| 2.Current increased | |||
| (1) Accrued |
| 3.Current decreased | |||
| (1) Disposal | |||
| 4.Ending balance | |||
| IV. Book value | |||
| 1.Ending Book value | 33,961,618.13 | 11,932,353.52 | 45,893,971.65 |
| 2.Opening Book value | 33,706,740.26 | 15,125,732.59 | 48,832,472.85 |
(2) Impairment testing of right-of-use asset
□Applicable ?Not applicable
17. Intangible asset
(1) Intangible asset
In RMB
| Item | Land use right | Patent and non-patent technology | Computer software | Trademark and trademark license | Total |
| I. Original book value | |||||
| 1.Opening balance | 372,945,018.62 | 265,193,677.79 | 214,863,628.61 | 41,597,126.47 | 894,599,451.49 |
| 2.Current increased | 46,498,486.73 | 10,842,570.88 | 57,341,057.61 | ||
| (1) Purchase | 4,327.75 | 665,710.81 | 670,038.56 | ||
| (2) Internal R&D | |||||
| (3) Increased by combination | |||||
| (4)Transfer from construction in progress | 46,494,158.98 | 10,176,860.07 | 56,671,019.05 | ||
| 3.Current decreased | 12,529.94 | 12,529.94 | |||
| (1)Disposal or scrapping | 12,529.94 | 12,529.94 | |||
| 4.Conversion of foreign currency financial statement | -6,166,612.08 | -443,590.97 | -6,610,203.05 | ||
| 5.Ending balance | 419,443,505.35 | 259,027,065.71 | 225,250,078.58 | 41,597,126.47 | 945,317,776.11 |
| II. Accumulated amortization | |||||
| 1.Opening balance | 113,015,433.79 | 109,623,226.43 | 160,301,847.95 | 9,709,000.00 | 392,649,508.17 |
| 2.Current increased | 4,039,216.52 | 11,380,495.87 | 20,197,809.56 | 927,799.60 | 36,545,321.55 |
| (1)Accrued | 4,039,216.52 | 11,380,495.87 | 20,197,809.56 | 927,799.60 | 36,545,321.55 |
| 3.Current decreased | 12,529.94 | 12,529.94 | |||
| (1)Disposal | 12,529.94 | 12,529.94 | |||
| 4.Conversion of foreign currency financial statement | -2,740,676.76 | -270,367.28 | -3,011,044.04 | ||
| 5.Ending balance | 117,054,650.31 | 118,263,045.54 | 180,216,760.29 | 10,636,799.60 | 426,171,255.74 |
| III. Depreciation reserves | |||||
| 1.Opening balance | 468,160.79 | 16,646,900.00 | 17,115,060.79 | ||
| 2.Current increased | |||||
| (1)Accrued | |||||
| 3.Current decreased |
| (1)Disposal | |||||
| 4.Conversion of foreign currency financial statement | -11,766.83 | -11,766.83 | |||
| 5.Ending balance | 456,393.96 | 16,646,900.00 | 17,103,293.96 | ||
| IV. Book value | |||||
| 1.Ending Book value | 302,388,855.04 | 140,764,020.17 | 44,576,924.33 | 14,313,426.87 | 502,043,226.41 |
| 2.Opening Book value | 259,929,584.83 | 155,570,451.36 | 54,093,619.87 | 15,241,226.47 | 484,834,882.53 |
The proportion of intangible asset formed through internal R&D of the Company to the balance of intangible asset at the end of thereporting period.
(2) Data source determined for intangible asset
Nil
(3) Land use right without property certification held
Other explanation: Nil
(4) Impairing test of intangible asset
□Applicable ?Not applicable
18. Goodwill
(1) Original book value of goodwill
In RMB
| The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
| Formed by business combination | Translation of foreign currency statements | Disposal | ||||
| Merged with WFTL | 1,784,086.79 | 1,784,086.79 | ||||
| Merged with Borit | 248,965,678.87 | -7,207,149.96 | 241,758,528.91 | |||
| Total | 250,749,765.66 | -7,207,149.96 | 243,542,615.70 | |||
(2) Goodwill depreciation reserve
In RMB
| The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
| Formed by business combination | Translation of foreign currency statements | Disposal | ||||
| Merged with WFTT | ||||||
| Merged with Borit | 128,432,946.46 | -3,717,924.13 | 124,715,022.33 | |||
| Total | 128,432,946.46 | -3,717,924.13 | 124,715,022.33 | |||
(3) Related information of asset group or asset portfolio of the goodwill
| Name | Component and basis for asset group or asset portfolio | Operation branch and basis | Is consistent with previous year? |
| WFTT | Long term asset related to the merger of WFTT goodwill; The management made it clear that this asset group will be used and operated independently of other asset, and will generate cash inflows independently | Automotive intake system product division; Category of asset group output products | Yes |
| Borit | Long term asset related to the merger of Borit’s goodwill; The management made it clear that this asset group will be used and operated independently of other asset, and will generate cash inflows independently | Other automotive parts divisions; Category of asset group output products | Yes |
Changes in asset group or asset portfolioNilOther explanation: Nil
(4) Specific method of determining the recoverable amount
For asset groups with signs of impairment, the Company estimates the recoverable amount of the asset group based on the higherof its fair value minus disposal expenses and the present value of expected future net cash flows; For asset groups that show nosigns of impairment, the Company determines the recoverable amount of the asset group based on the present value of theexpected future net cash flows of the asset group.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value?Applicable ?Not applicableThe recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used inprevious years' impairment testingNilReasons for significant discrepancies between the information used in the Company's previous annual impairment tests and theactual situation of the current yearNil
(5) Completion of performance commitments and corresponding impairment of goodwillWhen goodwill is formed, there is a performance commitment and the reporting period or the previous period is within theperformance commitment period
□Applicable ?Not applicable
Other explanation: Nil
19. Long-term deferred expense
In RMB
| Item | Opening balance | Current increase | Amortized in the reporting period | Other | Ending balance |
| Decoration expense, etc. | 24,714,632.10 | 808,306.52 | 4,236,889.73 | -360,728.41 | 20,925,320.48 |
| Total | 24,714,632.10 | 808,306.52 | 4,236,889.73 | -360,728.41 | 20,925,320.48 |
20. Deferred income tax asset/Deferred income tax liability
(1) Deferred income tax asset that are not offset
In RMB
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax asset | Deductible temporary difference | Deferred income tax asset | |
| Unrealized profit from insider transactions | 52,745,557.59 | 11,667,327.29 | 58,038,282.16 | 10,362,240.10 |
| Deductible loss | 1,093,630,958.09 | 164,044,643.71 | 1,021,893,078.26 | 153,283,961.74 |
| Bad debt provision | 49,349,118.02 | 7,593,004.94 | 82,811,787.71 | 12,593,312.59 |
| Inventory depreciation reserve | 244,989,763.16 | 38,437,035.20 | 286,016,361.30 | 45,423,673.61 |
| Depreciation reserves of fixed asset | 94,291,070.66 | 16,333,416.58 | 95,427,114.11 | 16,503,823.10 |
| Depreciation reserve of construction in progress | 184,615.38 | 27,692.31 | 184,615.38 | 27,692.31 |
| Depreciation reserves of intangible asset | 16,646,900.00 | 2,497,035.00 | 16,646,900.00 | 2,497,035.00 |
| Deferred income | 163,606,425.85 | 24,728,803.08 | 182,861,766.95 | 27,634,668.38 |
| Payable salary, accrued expenses etc. | 998,047,402.60 | 154,177,656.84 | 787,779,009.37 | 148,065,821.58 |
| Depreciation asset, amortization difference | 19,182,284.09 | 2,788,628.17 | 21,482,750.97 | 3,311,127.10 |
| Lease liability | 39,546,987.86 | 8,768,792.56 | 50,855,198.17 | 11,460,004.56 |
| Changes in fair value | 119,353,204.73 | 17,902,980.71 | 17,858,685.16 | 2,678,802.77 |
| Total | 2,891,574,288.03 | 448,967,016.39 | 2,621,855,549.54 | 433,842,162.84 |
(2) Deferred income tax liability that are not offset
In RMB
| Item | Ending balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| The difference between the fair value and taxation basis of WFTT asset in a merger not under the same control | 9,490,618.75 | 1,423,592.79 | 9,724,500.55 | 1,458,675.07 |
| The difference between the fair value and taxation basis of IRD asset in a merger not under the same control | 47,811,607.99 | 10,518,553.75 | 54,330,413.17 | 11,952,690.89 |
| The difference between the fair value and taxation basis of Borit asset in a merger not under the same control | 17,305,774.53 | 4,326,443.60 | 19,310,735.89 | 4,827,683.93 |
| The difference between the fair value and taxation basis of VH business in a merger not under the same control | 48,888,737.70 | 11,733,297.05 | 53,064,614.54 | 12,735,507.49 |
| Change in fair value of transaction financial asset | 15,123.29 | 2,268.49 | 8,339,996.55 | 1,259,587.67 |
| Accelerated depreciation of fixed asset | 815,578,757.85 | 126,716,232.77 | 761,694,832.59 | 116,424,109.44 |
| Right-of-use asset | 36,763,000.26 | 8,294,538.54 | 48,832,472.85 | 11,023,076.15 |
| Total | 975,853,620.37 | 163,014,926.99 | 955,297,566.14 | 159,681,330.64 |
(3) Deferred income tax asset and deferred income tax liability listed after off-set
In RMB
| Item | Trade-off between the deferred income tax asset and liability | Ending balance of deferred income tax asset or liability after off-set | Trade-off between the deferred income tax asset and liability at period-begin | Opening balance of deferred income tax asset or liability after off-set |
| Deferred income tax asset | 129,026,151.63 | 319,940,864.76 | 121,929,207.77 | 311,912,955.07 |
| Deferred income tax liability | 129,026,151.63 | 33,988,775.36 | 121,929,207.77 | 37,752,122.87 |
(4) Details of unrecognized deferred income tax asset
In RMB
| Item | Ending balance | Opening balance |
| Bad debt reserve | 1,651,006,900.30 | 1,649,499,774.15 |
| Inventory depreciation reserve | 32,784,249.28 | 35,117,491.71 |
| Loss from subsidiary | 882,607,320.13 | 845,349,190.11 |
| Depreciation reserves of fixed asset | 106,760,754.89 | 109,904,261.74 |
| Depreciation reserves of intangible asset | 456,393.96 | 468,160.79 |
| Other equity instrument investment | 13,600,000.00 | 13,600,000.00 |
| Wages payable, withholding expense, etc. | 4,572,812.40 | 4,572,812.40 |
| Total | 2,691,788,430.96 | 2,658,511,690.90 |
(5) Deductible loss of unrecognized deferred income tax asset expired in following years
In RMB
| Maturity year | Ending amount | Opening amount | Note |
| 2024 | 2,473,851.78 | 3,792,427.29 | Operating loss occurs in domestic subsidiaries |
| 2025 | 7,635,552.89 | 12,140,693.54 | Operating loss occurs in domestic subsidiaries |
| 2026 | 46,418,486.84 | 46,418,486.84 | Operating loss occurs in domestic subsidiaries |
| 2027 | 126,802,486.76 | 126,802,486.76 | Operating loss occurs in domestic subsidiaries |
| 2028 | 104,019,527.69 | 101,104,099.31 | Operating loss occurs in domestic subsidiaries |
| 2029 and the following years | 36,918,509.20 | Operating loss occurs in domestic subsidiaries | |
| No expiration date | 558,338,904.97 | 555,090,996.37 | Operating loss occurs in overseas subsidiaries |
| Total | 882,607,320.13 | 845,349,190.11 |
21. Other non-current asset
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Contract acquisition cost | 9,677,349.55 | 9,677,349.55 | 11,333,809.10 | 11,333,809.10 | ||
| Engineering equipment paid in advance | 219,166,657.26 | 219,166,657.26 | 232,894,913.95 | 232,894,913.95 | ||
| Large deposit certificates with a maturity of more than one year | 850,000,000.00 | 850,000,000.00 | 1,112,512,500.00 | 1,112,512,500.00 | ||
| Total | 1,078,844,006.81 | 1,078,844,006.81 | 1,356,741,223.05 | 1,356,741,223.05 | ||
22. Asset with ownership or use right restricted
In RMB
| Item | Ending | Opening | ||||||
| Book balance | Book value | Restriction type | Restriction reason | Book balance | Book value | Restriction type | Restriction reason | |
| Monetary funds | 128,231,135.19 | 128,231,135.19 | Cash deposit | Notes pledge for bank acceptance | 22,174,151.94 | 22,174,151.94 | Cash deposit | Notes pledge for bank acceptance |
| Bill receivable | 97,820,000.00 | 97,820,000.00 | Pledge | Notes pledge for bank acceptance | ||||
| Monetary funds | 7,673,250.00 | 7,673,250.00 | Cash deposit | IRD performance bond | 7,902,000.00 | 7,902,000.00 | Cash deposit | IRD performance bond |
| Monetary funds | 204,620.00 | 204,620.00 | Cash deposit | Cash deposit for Mastercard | 210,720.00 | 210,720.00 | Cash deposit | Cash deposit for Mastercard |
| Monetary funds | 4,000.00 | 4,000.00 | Cash deposit | ETC freezing | 4,000.00 | 4,000.00 | Cash deposit | ETC freezing |
| Receivables financing | 897,650,012.34 | 897,650,012.34 | Pledge | Notes pledge for bank acceptance | 568,256,134.85 | 568,256,134.85 | Pledge | Notes pledge for bank acceptance |
| Account receivable | 16,201,589.48 | 14,581,430.53 | Pledge | Pledge to obtain loans | ||||
| Total | 1,033,763,017.53 | 1,033,763,017.53 | 712,568,596.27 | 710,948,437.32 | ||||
23. Short-term borrowings
(1) Category of short-term borrowings
In RMB
| Item | Ending balance | Opening balance |
| Guaranteed loan | 3,000,000.00 | 3,000,000.00 |
| Credit loan | 323,943,276.83 | 818,592,983.28 |
| Factory financing | 16,201,589.48 | |
| Fufeiting Financing | 40,168,948.86 | |
| Payable interest | 504,673.69 | 1,094,984.75 |
| Total | 367,616,899.38 | 838,889,557.51 |
Explanation on classification of short-term borrowing: Nil
(2) Overdue short-term loans without payment
Other explanation: Nil
24. Note payable
In RMB
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 2,156,179,899.55 | 1,759,062,642.60 |
| Total | 2,156,179,899.55 | 1,759,062,642.60 |
Other explanation: To issue the above-mentioned bank acceptance bill, the Company paid a deposit of 128,231,135.19 yuan andpledged accounts receivable financing of 897,650,012.34 yuan.
25. Account payable
(1) Account payable
In RMB
| Category | Ending balance | Opening balance |
| Payable operating funds such as labor cost or goods | 3,181,056,152.16 | 3,547,366,822.23 |
| Accounts payable for engineering equipment | 170,723,643.64 | 121,483,601.06 |
| Total | 3,351,779,795.80 | 3,668,850,423.29 |
(2) Significant accounts payable in advance whose aging is over 1 year or overdueOther explanation: Nil
26. Other account payable
In RMB
| Item | Ending balance | Opening balance |
| Dividend Payable | 329,472,281.60 | |
| Other accounts payable | 58,420,021.43 | 108,893,486.63 |
| Total | 387,892,303.03 | 108,893,486.63 |
(1) Interest payable
Nil
(2) Dividend payable
In RMB
| Item | Ending balance | Opening balance |
| Dividend of common stocks | 329,472,281.60 | |
| Total | 329,472,281.60 |
Other explanations, including important dividends payable that have not been paid for more than one year, disclose the reason fornot paying: Nil
(3) Other account payable
1) By nature
In RMB
| Item | Ending balance | Opening balance |
| Deposit and margin | 27,287,704.87 | 13,422,590.66 |
| Social insurance and reserves funds that withholding | 1,616,061.28 | 1,282,686.66 |
| Intercourse funds of unit | 25,512,145.98 | 25,512,145.98 |
| Restricted stock repurchase obligations | 63,567,420.00 | |
| Other | 4,004,109.30 | 5,108,643.33 |
| Total | 58,420,021.43 | 108,893,486.63 |
2) Significant other payable over one year
In RMB
| Item | Ending balance | Reasons for not repaying or carry-over |
| Ningbo Jiangbei High-tech Industrial Park Development and Construction Co., Ltd | 19,026,000.00 | Intercourse funds from units |
| Total | 19,026,000.00 |
27. Accounts received in advance
(1) Accounts received in advance
In RMB
| Item | Ending balance | Opening balance |
| Within 1 year | 485,401.22 | 2,911,439.65 |
| Total | 485,401.22 | 2,911,439.65 |
(2) Significant accounts receivable in advance whose aging is over 1 year or overdueOther explanation: Nil
28. Contract liability
In RMB
| Item | Ending balance | Opening balance |
| Within one year | 58,095,702.93 | 63,409,595.72 |
| 1-2 years | 11,079,445.73 | 3,625,754.55 |
| 2-3 years | 5,777,241.76 | 8,677,954.57 |
| Over three years | 7,016,428.60 | 1,973,576.40 |
| Total | 81,968,819.02 | 77,686,881.24 |
29. Wage payable
(1) Wage payable
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 268,481,110.97 | 675,967,935.29 | 770,565,044.78 | 173,884,001.48 |
| II. Post-employment welfare- defined contribution plans | 27,791,996.30 | 102,254,403.02 | 119,645,985.82 | 10,400,413.50 |
| III. Dismissed welfare | 964,506.11 | 148,539.41 | 148,539.41 | 964,506.11 |
| IV. Incentive funds paid within one year | 18,200,000.00 | 18,200,000.00 | ||
| V. Other short-term welfare-Housing subsidies, employee benefits and welfare funds | 19,372,739.18 | 2,059,875.00 | 17,312,864.18 | |
| Total | 334,810,352.56 | 778,370,877.72 | 892,419,445.01 | 220,761,785.27 |
(2) Short-term compensation
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 254,165,851.19 | 547,447,021.98 | 640,291,028.05 | 161,321,845.12 |
| 2. Welfare for workers and staff | 36,294,156.10 | 36,294,156.10 | ||
| 3. Social insurance | 323,238.00 | 34,131,899.03 | 33,864,268.96 | 590,868.07 |
| Including: Medical insurance | 268,640.66 | 27,598,496.86 | 27,571,493.25 | 295,644.27 |
| Work injury insurance | 40,482.29 | 3,653,700.28 | 3,630,893.41 | 63,289.16 |
| Maternity insurance | 14,115.05 | 2,879,701.89 | 2,661,882.30 | 231,934.64 |
| 4. Housing accumulation fund | 870,058.00 | 41,977,917.12 | 41,914,398.56 | 933,576.56 |
| 5. Labor union expenditure and personnel education expense | 9,736,105.14 | 6,953,803.61 | 7,542,899.95 | 9,147,008.80 |
| 6. Other short-term compensation - social security | 3,385,858.64 | 9,163,137.45 | 10,658,293.16 | 1,890,702.93 |
| Total | 268,481,110.97 | 675,967,935.29 | 770,565,044.78 | 173,884,001.48 |
(3) Define contribution plans
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment premium | 8,523,565.50 | 85,604,117.76 | 86,669,855.34 | 7,457,827.92 |
| 2. Unemployment insurance | 47,208.12 | 2,200,208.37 | 2,208,951.73 | 38,464.76 |
| 3. Enterprise annuity | 19,221,222.68 | 14,450,076.89 | 30,767,178.75 | 2,904,120.82 |
| Total | 27,791,996.30 | 102,254,403.02 | 119,645,985.82 | 10,400,413.50 |
Other explanation:
Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities bylaws, a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.Other than the aforesaid monthly contribution, the Company takes no further payment obligation. The relevant expenditure isincluded in current profit or loss or cost of relevant asset when occurs. Found more of enterprise annuity in Note XVIII-4 “Annuityplan”.
30. Tax payable
In RMB
| Item | Ending balance | Opening balance |
| Value-added tax | 28,606,537.00 | 8,011,069.82 |
| Corporation income tax | 22,391,507.19 | 30,183,553.14 |
| Individual income tax | 3,123,688.92 | 7,904,270.96 |
| City maintaining & construction tax | 2,118,124.27 | 568,820.85 |
| Educational surtax | 1,517,937.29 | 410,526.96 |
| Other (including stamp tax and local funds) | 8,870,606.78 | 9,502,840.76 |
| Total | 66,628,401.45 | 56,581,082.49 |
31. Non-current liability due within one year
In RMB
| Item | Ending balance | Opening balance |
| Long-term borrowings due within one year | 199,900,000.00 | 24,700,000.00 |
| Lease payments due within one year | 14,110,866.13 | 13,122,001.66 |
| Interest payable | 191,597.22 | 262,319.44 |
| Total | 214,202,463.35 | 38,084,321.10 |
32. Other current liability
In RMB
| Item | Ending balance | Opening balance |
| Rebate payable | 294,102,302.79 | 253,258,241.31 |
| Pending sales tax | 5,781,579.48 | 3,881,667.29 |
| Total | 299,883,882.27 | 257,139,908.60 |
Changes in short-term bonds payable: Nil
33. Long-term borrowings
(1) Category of long-term borrowings
In RMB
| Item | Ending balance | Opening balance |
| Credit loan | 100,000,000.00 | 299,800,000.00 |
| Total | 100,000,000.00 | 299,800,000.00 |
34. Lease liability
In RMB
| Item | Ending balance | Opening balance |
| Lease payments | 56,618,894.49 | 56,779,079.32 |
| Less: Unconfirmed financing costs | 8,114,558.90 | 5,923,881.15 |
| Less: Lease liability due within one year | 14,110,866.13 | 13,122,001.66 |
| Total | 34,393,469.46 | 37,733,196.51 |
35. Long-term account payable
In RMB
| Item | Ending balance | Opening balance |
| Long-term account payable | 9,770,000.00 | 9,770,000.00 |
| Special accounts payable | 18,265,082.11 | 18,265,082.11 |
| Total | 28,035,082.11 | 28,035,082.11 |
(1) Long-term account payable listed by nature
In RMB
| Item | Ending balance | Opening balance |
| Hi-tech Branch of Nanjing Finance Bureau (note ①) Financial support funds (2009) | 1,030,000.00 | 1,030,000.00 |
| Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2010) | 960,000.00 | 960,000.00 |
| Hi-tech Branch of Nanjing Finance Bureau (note ③) Financial support funds (2011) | 5,040,000.00 | 5,040,000.00 |
| Hi-tech Branch of Nanjing Finance Bureau (note ④) Financial support funds (2013) | 2,740,000.00 | 2,740,000.00 |
| Total | 9,770,000.00 | 9,770,000.00 |
Other explanation:
Note ①: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capitalis allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from Oct. 27, 2009 to Oct. 27,2024. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed. Thissupport capital has been in use for 15 years in this period, so it has been transferred to other income.Note ②: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital isallotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from December 27, 2010 to December27, 2025. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ③: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital isallotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from Dec. 28, 2011 to Dec. 28, 2026.Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ④: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital isallotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from December 18, 2013 to December18, 2028. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.
(2) Special accounts payable
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | Cause of formation |
| Removal compensation of subsidiary WFJN | 18,265,082.11 | 18,265,082.11 | |||
| Total | 18,265,082.11 | 18,265,082.11 |
Other explanationIn line with regulation of the house acquisition decision of People’s government of Xuanwu District, Nanjing City, Ning Xuan FuZheng Zi (2012) No.001, part of the lands and property of WFJN needs expropriation in order to carry out the comprehensivelyimprovement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signedbetween WFJN and House Expropriation Management Office of Xuanwu District, Nanjing City, 19.7067 million yuan in totalwere compensated, including operation loss from lessee 1.4416 million yuan in total. The above compensation was received in lastperiod and is making up for the loss from lessee, and the above lands and property have not been collected up to June 30, 2024.
36. Long-term wages payable
(1) Long-term wages payable
In RMB
| Item | Ending balance | Opening balance |
| I. Post-employment benefits - Defined benefit plan net liability | 20,142,460.17 | 21,238,891.62 |
| II. Dismiss welfare | 12,705,455.44 | 12,926,873.35 |
| III. Other long-term welfare | 95,678,717.83 | 95,678,717.83 |
| Total | 128,526,633.44 | 129,844,482.80 |
(2) Changes in defined benefit plan
Present value of defined benefit plan
In RMB
| Item | Current Period | Last Period |
| I. Opening balance | 21,238,891.62 | 20,380,744.73 |
| II. Cost of defined benefit plan booked into current profit and loss | 325,440.87 | 385,952.19 |
| 1.Current service cost | 325,440.87 | 385,952.19 |
| III. Cost of defined benefit plan booked into other comprehensive income | -451,530.88 | 704,649.43 |
| 1.Actuarial gain (loss are represented by “-”) | -451,530.88 | 704,649.43 |
| IV. Other changes | -970,341.44 | 518,080.76 |
| 1.Welfare paid | -438,808.45 | -99,925.69 |
| 2.Translation difference of foreign currency statements | -531,532.99 | 618,006.45 |
| V. Ending balance | 20,142,460.17 | 21,989,427.11 |
Other explanation:
According to relevant regulations in Italy, the Trattamento di Fine Rapporto (TFR) system is established. VHIO shall calculate andoffer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or aredismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. Theabove-mentioned benefit plan poses actuarial risks to VHIO, mainly including interest rate risk and inflation risk. The decrease ininterest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition, the present value ofbenefit plan obligations is related to the future payment standards of the plan, which are determined based on inflation rates.Therefore, an increase in inflation rate will also lead to an increase in planned liability.
37. Anticipated liability
In RMB
| Item | Ending balance | Opening balance | Formation cause |
| Pending dispute and litigation | 59,459.66 | ||
| Product quality assurance | 19,456,691.27 | 26,946,035.59 | |
| Withholding sales discounts | 7,290,089.00 | 10,709,925.00 | |
| Investment loss in joint ventures | |||
| Environmental protection commitment | 301,008.27 | ||
| Total | 26,746,780.27 | 38,016,428.52 |
Other explanations, including important assumptions and estimation explanations related to significant estimated liability: Nil
38. Deferred income
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | Cause of formation |
| Government grant | 188,773,622.29 | 15,934,738.51 | 36,872,867.80 | 167,835,493.00 | |
| Total | 188,773,622.29 | 15,934,738.51 | 36,872,867.80 | 167,835,493.00 | -- |
Item with government grants involved:
In RMB
| Items of liability | Opening balance | New grants in the reporting period | Amount reckoned into other income in the reporting period | Translation of foreign currency statements | Ending balance | Asset related/Income related |
| Appropriation for research and development ability of distributive high-pressure | 4,755,045.84 | 390,825.70 | 4,364,220.14 | Asset related |
| common rail system for diesel engine use and production line technological transformation project | ||||||
| Fund of industry upgrade (2013) | 7,252,478.13 | 7,252,478.13 | 0.00 | Income related | ||
| R&D and industrialization of the high-pressure variable pump of the common rail system of diesel engine for automobile | 1,687,274.46 | 499,317.53 | 1,187,956.93 | Asset related | ||
| Research institute of motor vehicle exhaust after-treatment technology | 22,026.39 | 22,026.39 | - | Asset related | ||
| Fund of industry upgrade (2014) | 36,831,000.00 | 1,287,794.72 | 35,543,205.28 | Income related | ||
| New-built asset compensation after the removal of parent Company | 44,826,346.03 | 8,771,401.60 | 36,054,944.43 | Asset 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 | 2,572,688.97 | 609,075.97 | 1,963,613.00 | Asset related | ||
| Implementation of the variable cross-section turbocharger for diesel engine | 2,705,753.03 | 540,821.30 | 2,164,931.73 | Asset related | ||
| Demonstration project for intelligent manufacturing | 251,849.60 | 89,925.24 | 161,924.36 | Asset related | ||
| The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019 | 648,856.50 | 211,422.34 | 437,434.16 | Asset related | ||
| Municipal technological reform fund allocation in 2020 | 2,911,199.53 | 307,827.42 | 2,603,372.11 | Asset related | ||
| Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone | 2,541,462.10 | 416,578.38 | 2,124,883.72 | Asset related | ||
| The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021 | 3,945,523.81 | 513,223.58 | 3,432,300.23 | Asset related | ||
| 2023 Wuxi Industrial Transformation and Upgrading Fund | 9,001,247.04 | 443,246.59 | 8,558,000.45 | Asset related | ||
| Technical renovation and capacity optimization project for annual production of 150,000 sets of turbochargers | 1,676,119.38 | 101,940.53 | 1,574,178.85 | Asset related | ||
| Other | 27,144,751.48 | 16,097,455.21 | 15,414,962.38 | -162,716.70 | 27,664,527.61 | Asset/Income related |
| Total | 188,773,622.29 | 16,097,455.21 | 36,872,867.80 | -162,716.70 | 167,835,493.00 |
Other explanation:
(1) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine useand production line technological transformation project: according to XCJ No. [2010] 59, the Company received special funds of
7.1 million yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company’s research anddevelopment ability of distributive high-pressure common rail system for diesel engine use and production line technologicaltransformation project; this appropriation was asset-related government grant and 390,825.70 yuan was written off based on thedepreciation schedule of the related asset during the reporting period.
(2) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi Xin Guan Jing Fa[2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the Company received funds of 60.52million yuan appropriated for industry upgrading in 2013 and amount of 7,252,478.13 yuan was written off in the year.
(3) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: theCompany received 8.05 million yuan appropriated for the project in 2013 in line with documents of Xi Ke Ji [2013] No.186, Xi KeJi [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao[2014] No.58, Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. The Company received 8.05 million yuan, 3 million
yuan and 0.45 million yuan respectively in 2013, 2014 and 2015; Such funds were asset-related government grant, and amount of499,317.53 yuan was written off in the year according to depreciation progress of related asset.
(4) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary WFLD applied for equipmentpurchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for thevehicle exhaust after-treatment technology research institute project. This declaration was approved by Wuxi Huishan Science andTechnology Bureau and Wuxi Science and Technology Bureau in 2012, and the Company received appropriation of 2.4 millionyuan in 2012, and received appropriation of 1.6 million yuan in 2013. Such funds were asset-related government grants and shallbe written off according to the depreciation process, and amount of 22,026.39 yuan was written off in the year.
(5) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and Xi Xin Guan CaiFa [2014] No.143, the Company received funds of 36.831 million yuan appropriated for industry upgrading in 2014 and amount of1,287,794.72 yuan was written off in the year.
(6) New-built asset compensation after the removal of parent Company: policy relocation compensation received by the Company,and will be written off according to the depreciation of new-built asset, amount of 8,771,401.60 yuan was written off in the year.
(7) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and Xi Xin Fa [2016]No.70, the Company received funds of 40 million yuan appropriated for industry upgrading in 2016.
(8) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi JingXin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received 9.74 million yuan for the guiding capital of technicalreform (1st batch) from Wuxi for year of 2016, and belongs to government grant with asset concerned, and shall be written offaccording to the depreciation process, amount of 609,075.97 yuan was written off in the year.
(9) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZF[2016]No.623 and “Strong Industrial Base Project Contract for year of 2017”, subsidiary WFTT received a specific subsidy of 16.97million yuan in 2016 and of 760,000 yuan in 2018, the fund supporting strong industrial base project (made-in-China 2025) ofcentral industrial transformation and upgrading 2016 from Ministry of Industry and Information Technology; It belongs togovernment grant with asset concerned, and shall be written off according to the depreciation process. Amount of 540,821.30yuan was written off in the year.
(10) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent ManufacturingModel Project in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 yuan was granted by relevantgovernment authority in Huishan district to our subsidiary WFLD in 2017 to be utilized for transformation and upgrade ofWFLD’s intelligent manufacturing facilities. This subsidy belongs to government grant related to asset which shall be written offbased on the depreciation progress of the asset. Amount of 89,925.24 yuan was written off in the year.
(11) The 2
nd
batch of provincial special funds for industry transformation of industrial and information in 2019: according toXCGM [2019] No. 121, the Company received a special fund of 5 million yuan in 2020. This subsidy was related to the “WeifuHigh-Technology New Factory Internet Construction” projects, and belonged to government grants related to asset. and shall bewritten off according to the depreciation process, amount of 211,422.34 yuan was written off in the year.
(12) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16, the Company received 4.77million yuan of municipal technological transformation fund project allocation in 2020, which was related to key technologicaltransformation projects and belonged to government grants related to asset. and shall be written off according to the depreciationprocess. Amount of 307,827.42 yuan was written off in the year.
(13) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF[2020] No. 61, the Company received a related grant of 4.06 million yuan in 2020 and 0.7 million yuan received in the year, thisgrant was related to the intelligent transformation project and belonged to the government grants related to asset. and shall bewritten off according to the depreciation process, amount of 416,578.38 yuan was written off in the year.
(14) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to theSCGM [2021] No.92, the government grant 13.5 million yuan received in 2021 was for the research, development and
industrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells, which was anasset related government grants. According to the depreciation progress of related asset, amount of 513,223.58 yuan was writtenoff in the year.
(15) 2023 Wuxi Industrial Transformation and Upgrading Fund: The government subsidy received in this period of 10 millionyuan was used for the Company's new motor shaft, water jacket, injector seat, and gasoline rail expansion project, which is agovernment subsidy related to asset. According to the depreciation progress of related asset, amount of 443,246.59 yuan waswritten off in the year.
(16) Funding for technical renovation and capacity optimization project for annual production of 150,000 sets of turbochargers:
According to BQJX[2021] No.31 and BQJX[2022]No.29 documents, the subsidiary WFTL received a government subsidy of 2million yuan in 2023 for the annual production of 150,000 sets of turbochargers technology renovation and capacity optimizationproject. This subsidy belongs to asset related subsidies. According to the depreciation progress of related asset, amount of101,940.53 yuan was written off in the year.
39. Share
In RMB
| Opening balance | Change during the year (+/-) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,002,162,793.00 | -5,176,500.00 | -5,176,500.00 | 996,986,293.00 | |||
Other explanation: The decrease in share capital is due to the cancellation of 5,176,500 shares that were not unlocked under theCompany's restricted stock incentive plan.
40. Capital reserve
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Capital premium (Share capital premium) | 3,245,698,337.98 | 58,390,920.00 | 3,187,307,417.98 | |
| Other capital reserve | 62,471,802.98 | 597,389.29 | 9,766.98 | 63,059,425.29 |
| Total | 3,308,170,140.96 | 597,389.29 | 58,400,686.98 | 3,250,366,843.27 |
Other explanation, including changes in the reporting period and reasons for changes;
(1) The decrease of 58,390,920.00 yuan in capital premium (share premium) for the current period is due to the cancellation ofrestricted stocks.
(2) The increase of 597,389.29 yuan in other capital reserves for the current period is due to changes in other equity of jointventures, which the Company enjoys in proportion to its shareholding.
(3) The decrease of 9,766.98 yuan in other capital reserves for the current period is due to the handling fee of 9,766.98 yuan paidfor repurchasing shares.
41. Treasury stock
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Buyback shares | 469,722,092.24 | 469,722,092.24 | ||
| Repurchase obligation of restricted stock incentive plan | 63,567,420.00 | 63,567,420.00 |
| Total | 533,289,512.24 | 63,567,420.00 | 469,722,092.24 |
Other explanations, including changes in the current period and explanations of the reasons for the changes:
Repurchase obligation of restricted stock incentive plan has RMB 63,567,420.00 decreased in the reporting period, which wasinventory shares that were converted from 5,176,500.00 unlocked shares under the Company's restricted stock incentive plan.
42. Other comprehensive income
In RMB
| Item | Opening balance | Current Period | Ending balance | |||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gain and loss in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less: income tax expense | Belong to parent Company after tax | Belong to minority shareholders after tax | |||
| I. Other comprehensive income that cannot be reclassified to profit or loss | -1,573,054.85 | 451,530.88 | 451,530.88 | -1,121,523.97 | ||||
| Including:Remeasure changes in defined benefit plans | -1,589,063.65 | 451,530.88 | 451,530.88 | -1,137,532.77 | ||||
| Other comprehensive income that cannot be transferred to profit or loss under the equity method | 16,008.80 | 16,008.80 | ||||||
| II. Other comprehensive income items which will be reclassified subsequently to profit or loss | 55,729,970.82 | -22,321,187.64 | -22,321,187.64 | 33,408,783.18 | ||||
| Conversion difference of foreign currency financial statement | 55,729,970.82 | -22,321,187.64 | -22,321,187.64 | 33,408,783.18 | ||||
| Total other comprehensive income | 54,156,915.97 | -21,869,656.76 | -21,869,656.76 | 32,287,259.21 | ||||
Other explanations, including the adjustment of the effective portion of cash flow hedging gain and loss to the initial recognitionamount of the hedged item: Nil
43. Reasonable reserve
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Work safety costs | 3,641,439.97 | 14,355,523.67 | 12,105,697.67 | 5,891,265.97 |
| Total | 3,641,439.97 | 14,355,523.67 | 12,105,697.67 | 5,891,265.97 |
Other explanation, including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (work safety cost): According to the CZ [2022] No.136-AdministrativeMeasures on the Withdrawing and Use of Enterprise Safety Production Expenses jointly issued by the Ministry of Finance and theState Administration of Work Safety, in the current period, the Company adopted excess retreat method for monthly withdrawalby taking the actual operating income of the previous period as the withdrawing basis.
(2) The above work safety costs includes the work safety costs accrued by the Company in line with regulations and the partsenjoy by shareholders of the Company.
44. Surplus reserve
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Statutory surplus reserves | 510,100,496.00 | 510,100,496.00 | ||
| Total | 510,100,496.00 | 510,100,496.00 |
Other explanation, including changes and reasons for changes:
Pursuit to the Company Law and Article of Association, the Company withdraws statutory surplus reserve on 10% of the net profit.No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes over 50% of the registered capital.
45. Retained profit
In RMB
| Item | Current Period | Last Period |
| Retained profits at the end of last year before adjustment | 15,054,950,398.12 | 13,320,021,325.90 |
| Retained profits at the beginning of the year after adjustment | 15,054,950,398.12 | 13,320,021,325.90 |
| Add: The net profits belong to owners of patent Company of this period | 954,341,269.90 | 1,837,291,259.68 |
| Less: Cash dividends payable | 971,986,293.00 | 97,757,979.30 |
| Withdraw employee rewards and welfare funds | 4,604,208.16 | |
| Retained profit at period-end | 15,037,305,375.02 | 15,054,950,398.12 |
Details about adjusting the retained profits at the beginning of the reporting period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect theretained profits at the beginning of the reporting period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the reporting period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the reporting period amounting to 0 yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the reporting period amountingto 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the reporting period amounting to 0 yuan
46. Operating income and cost
In RMB
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main operating | 5,602,366,875.45 | 4,590,170,191.12 | 6,052,163,689.76 | 5,137,115,309.66 |
| Other business | 91,866,677.27 | 30,382,562.42 | 77,485,357.64 | 26,756,421.60 |
| Total | 5,694,233,552.72 | 4,620,552,753.54 | 6,129,649,047.40 | 5,163,871,731.26 |
Breakdown information of operating income and operating cost:
In RMB
| Type of contract | Automotive fuel injection system and fuel cell component segment | Automotive post processing system segment | Air management system segment | Other automotive components segment | Total | |||||
| Operating income | Operating cost | Operating income | Operating cost | Operating income | Operating cost | Operating income | Operating cost | Operating income | Operating cost | |
| Classified by the time of | ||||||||||
| transfer of goods | ||||||||||
| Including: | ||||||||||
| Primary business | ||||||||||
| Including: confirmed at some point of time | 2,389,384,035.29 | 1,832,154,586.09 | 1,788,451,511.09 | 1,532,494,804.84 | 501,982,916.15 | 389,330,715.88 | 922,548,412.92 | 836,190,084.31 | 5,602,366,875.45 | 4,590,170,191.12 |
| confirmed at some period of time | ||||||||||
| Other business | ||||||||||
| Including: confirmed at some point of time | 49,084,207.14 | 9,966,363.91 | 13,937,447.24 | 3,467,657.53 | 4,528,867.21 | 983,918.79 | 11,067,923.31 | 8,577,658.76 | 78,618,444.90 | 22,995,598.99 |
| confirmed at some period of time | ||||||||||
| Rental income | 11,625,269.52 | 6,538,781.12 | 1,003,317.02 | 641,271.45 | 619,645.83 | 206,910.86 | 13,248,232.37 | 7,386,963.43 | ||
| Total | 2,450,093,511.95 | 1,848,659,731.12 | 1,803,392,275.35 | 1,536,603,733.82 | 507,131,429.19 | 390,521,545.53 | 933,616,336.23 | 844,767,743.07 | 5,694,233,552.72 | 4,620,552,753.54 |
47. Operating tax and extra
In RMB
| Item | Current Period | Last Period |
| City maintaining & construction tax | 5,794,135.28 | 8,517,861.49 |
| Educational surtax | 4,148,769.09 | 6,087,805.08 |
| Property tax | 10,803,395.41 | 11,115,997.34 |
| Land use tax | 2,892,897.92 | 2,013,933.93 |
| Vehicle use tax | 3,536.00 | 19,170.06 |
| Stamp duty | 4,000,044.56 | 4,119,912.74 |
| Other tax | 617,416.53 | 365,742.35 |
| Total | 28,260,194.79 | 32,240,422.99 |
48. Administration expenses
In RMB
| Item | Current Period | Last Period |
| Salary and wage related expense | 184,784,922.02 | 157,699,092.98 |
| Depreciation charger and long-term asset amortization | 59,381,681.77 | 53,460,774.32 |
| Consumption of office materials and business travel charge | 10,158,382.36 | 9,690,794.26 |
| Share-based payment | 3,351,570.96 | |
| Other | 76,614,673.16 | 74,993,497.07 |
| Total | 330,939,659.31 | 299,195,729.59 |
49. Sales expenses
In RMB
| Item | Current Period | Last Period |
| Salary and wage related expense | 41,075,635.21 | 33,589,826.19 |
| Consumption of office materials and business travel charge | 5,532,210.03 | 5,356,063.20 |
| Warehouse charge | 10,002,106.13 | 3,818,351.46 |
| Three guarantees and quality cost | 35,807,470.52 | 38,356,321.13 |
| Business entertainment fee | 5,635,855.05 | 5,701,496.43 |
| Other | 15,174,719.90 | 16,209,422.99 |
| Total | 113,227,996.84 | 103,031,481.40 |
50. R&D expenditure
In RMB
| Item | Current Period | Last Period |
| Technology development expenditure | 302,233,285.34 | 351,887,038.12 |
| Total | 302,233,285.34 | 351,887,038.12 |
51. Financial expenses
In RMB
| Item | Current Period | Last Period |
| Interest expenses | 13,772,229.94 | 65,616,425.64 |
| Less: interest income(be filled in with the sign of “-”) | 18,112,595.69 | 15,706,416.56 |
| Gain/loss from exchange | 10,342,985.06 | -14,651,449.58 |
| Handling charges | 2,209,219.32 | 3,203,622.95 |
| Total | 8,211,838.63 | 38,462,182.45 |
52. Other income
In RMB
| Sources of income generated | Current Period | Last Period |
| Government grants with routine operation activity concerned | 40,309,960.72 | 35,592,303.00 |
| VAT instant refund | 83,247,274.78 | |
| Tax credit for overseas subsidiaries | 6,583,950.25 | 4,565,105.73 |
| Refund of individual income tax handling fee | 744,863.36 | 822,184.78 |
| Total | 130,886,049.11 | 40,979,593.51 |
Details of government subsidies included in other income:
| Subsidy projects | Current period | Last period | Related to asset/income |
| Annual production of 300,000 four cylinder engine supercharger technology renovation project | 6,771.94 | 28,439.32 | Related to asset |
| Depreciation/amortization compensation for newly built asset after the relocation of the parent Company | 8,771,401.60 | 8,961,973.65 | Related to asset |
| Technical transformation of catalytic reduction system for commercial vehicles with an annual output of 180,000 units | 60,222.22 | 116,777.78 | Related to asset |
| Research and industrialization project of high-pressure variable pump for common rail system of automotive diesel engine | 499,317.53 | 506,584.28 | Related to asset |
| Intelligent manufacturing demonstration project funds | 89,925.24 | 90,019.10 | Related to asset |
| Research Institute of Motor Vehicle Exhaust Aftertreatment Technology | 22,026.39 | 44,915.68 | Related to asset |
| Implementation plan for variable cross-section turbochargers in diesel engines | 540,821.30 | 774,340.08 | Related to asset |
| Subsidy for the annual production of 200,000 gasoline engine turbochargers technology renovation project | 137,881.94 | 138,201.84 | Related to asset |
| Subsidy projects | Current period | Last period | Related to asset/income |
| Annual production of 150,000 gasoline engine turbochargers | 103,967.92 | 124,278.78 | Related to asset |
| Technical Transformation Guidance Fund of the National High tech Management Committee | 609,075.97 | 607,212.50 | Related to asset |
| Industrial upgrading fund | 8,540,272.85 | 16,399,408.54 | Related to income |
| R&D capability and production line technology transformation project of distributed high-pressure common rail system for diesel engines | 390,825.70 | 390,825.70 | Related to asset |
| Funding for municipal level technological renovation projects in 2020 | 307,827.42 | 307,948.54 | Related to asset |
| The second batch of provincial special funds for industrial and information industry transformation in 2019 | 211,422.34 | 611,563.78 | Related to asset |
| Subsidies for stabilizing and expanding positions | 13,500.00 | 134,024.51 | Related to income |
| Technical Renovation and Capacity Optimization Project for Annual Production of 150,000 Turbochargers | 101,940.53 | Related to asset | |
| The third batch of provincial special funds for industrial and information industry transformation and upgrading in 2021 | 513,223.58 | Related to asset | |
| 2023 Wuxi Industrial Transformation and Upgrading Fund (Second Batch) Support Project Intelligent Construction Project | 443,246.59 | Related to asset | |
| 3 R | 697,092.82 | 642,615.43 | Related to income |
| Anione | 50,521.95 | 19,228.15 | Related to income |
| Provincial specialized, refined, unique and new small and medium-sized enterprises | 150,000.00 | Related to income | |
| Ningbo (Jiangbei) High tech Industrial Park | 840,000.00 | Related to income | |
| Industrial upgrading subsidy | 11,433,123.80 | Related to income | |
| Training subsidy | 95,550.00 | Related to income | |
| Subsidies for stabilizing and expanding positions | 135,524.51 | Related to income | |
| The second batch of technological transformation in Jiangbei District in 2023 | 2,000,000.00 | Related to asset | |
| Talent policy subsidies | 557,028.00 | Related to income | |
| Specialized and innovative small giant enterprise subsidy | 200,000.00 | Related to income | |
| Other | 5,775,551.09 | 2,705,842.83 | Related to asset/income |
| Total | 40,309,960.72 | 35,592,303.00 |
53. Income from change of fair value
In RMB
| Sources | Current Period | Last Period |
| Trading financial asset | -105,836,110.61 | 7,196,973.71 |
| Other non current financial asset | -120,000.00 | -25,266,527.00 |
| Total | -105,956,110.61 | -18,069,553.29 |
54. Investment income
In RMB
| Item | Current Period | Last Period |
| Income of long-term equity investment calculated based on equity method | 734,287,171.95 | 742,783,514.37 |
| Investment income from holding of trading financial asset | 37,864,494.00 | 69,978,714.96 |
| Income from debt restructuring | -284,132.56 | |
| Gain/loss recognized when financing of accounts receivable is terminated for discounting | -2,198,912.35 | -1,355,595.84 |
| Total | 769,668,621.04 | 811,406,633.49 |
55. Credit impairment loss
In RMB
| Item | Current Period | Last Period |
| Bad debt loss of accounts receivable | 4,356,331.08 | 146,544.21 |
| Bad debt loss of other accounts receivable | -865,695.62 | -993,269.97 |
| Total | 3,490,635.46 | -846,725.76 |
56. Asset impairment loss
In RMB
| Item | Current Period | Last Period |
| 1. Loss of inventory falling price and loss of contract performance cost impairment | -66,803,279.10 | -89,988,541.10 |
| 2.Impairment loss of fixed asset | -274,995.90 | |
| Total | -66,803,279.10 | -90,263,537.00 |
57. Income from asset disposal
In RMB
| Sources | Current Period | Last Period |
| Income from disposal of non-current asset | 7,727,515.15 | 126,476,687.75 |
| Loss from disposal of non-current asset | -1,868,313.66 | -945,782.71 |
| Total | 5,859,201.49 | 125,530,905.04 |
58. Non-operating income
In RMB
| Item | Current Period | Last Period | Amount reckoned into current non-recurring gain/loss |
| Payables that do not require payment | 429,031.67 | 2,439,961.77 | 429,031.67 |
| Liquidated damages and compensation income | 71,807.84 | 164,991.15 | 71,807.84 |
| Other | 199,579.16 | 102,743.08 | 199,579.16 |
| Total | 700,418.67 | 2,707,696.00 | 700,418.67 |
59. Non-operating expense
In RMB
| Item | Current Period | Last Period | Amount reckoned into current non-recurring gain/loss |
| Donation | 213,500.00 | 20,000.00 | 213,500.00 |
| Total of non-current asset disposal loss | 385,558.12 | 661,923.94 | 385,558.12 |
| Including: loss on scrapping of fixed asset | 385,558.12 | 661,923.94 | 385,558.12 |
| Loss on scrapping of intangible asset | |||
| Other | 2,762,757.23 | 76,457.75 | 2,762,757.23 |
| Total | 3,361,815.35 | 758,381.69 | 3,361,815.35 |
60. Income tax expense
(1) Income tax expense
In RMB
| Item | Current Period | Last Period |
| Payable tax in current period | 29,419,571.42 | 29,859,646.45 |
| Adjust previous income tax | 5,387,844.06 | -11,522.40 |
| Increase/decrease of deferred income tax asset | -15,433,648.34 | -3,637,244.56 |
| Increase/decrease of deferred income tax liability | 4,329,953.42 | 3,121,400.25 |
| Total | 23,703,720.56 | 29,332,279.74 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current Period |
| Total profit | 1,025,291,544.98 |
| Income tax measured by statutory/applicable tax rate | 153,793,731.75 |
| Impact by different tax rate applied by subsidies | 10,024,552.39 |
| Impact from adjusting the previous income tax | 5,387,844.06 |
| Impact by non-taxable revenue | -110,434,226.77 |
| Impact on cost, expenses and loss that unable to deducted | 91,822.36 |
| Impact by the deductible loss of the un-recognized previous deferred income tax | 8,282,777.16 |
| The deductible temporary differences or deductible loss of the un-recognized deferred income tax asset in the Period | -37,569,911.95 |
| Impact on additional deduction | -5,557,760.85 |
| Other | -315,107.59 |
| Income tax expense | 23,703,720.56 |
61. Other comprehensive income
See Note VII-43 “Other comprehensive income”.
62. Items of cash flow statement
(1) Cash related to operating activities
Cash received in relation to operation activities
In RMB
| Item | Current Period | Last Period |
| Interest income | 18,112,595.69 | 15,706,416.56 |
| Government grants | 19,534,548.13 | 16,848,073.14 |
| Capital inflow of WFTR “platform trade” business portfolio | 299,235,761.25 | |
| Other | 16,773,005.42 | 18,644,560.72 |
| Total | 54,420,149.24 | 350,434,811.67 |
Explanation on other cash received in relation to operation activities:
NilOther cash paid in relation to operation activities
In RMB
| Item | Current Period | Last Period |
| Cash cost | 320,543,557.21 | 301,149,590.30 |
| Capital outflow of WFTR “platform trade” business portfolio | 100,000,000.00 | |
| Other | 12,024,400.43 | 8,281,394.08 |
| Total | 332,567,957.64 | 409,430,984.38 |
Explanation to other cash paid in relation to operation activities: Nil
(2) Cash in relation to investment activities
Nil
(3) Cash in related to financing activities
Other cash paid in related to financing activities
In RMB
| Item | Current Period | Last Period |
| Repayment of non-financial enterprise loans | ||
| Borrowing return by WFLD | ||
| Lease payments | 9,325,420.84 | 3,411,636.27 |
| Repurchase of A shares | 71,917,549.61 | |
| Shares repurchase for restricted stock incentive plan unlocked | 63,567,420.00 | 69,247,530.00 |
| Other | 10,353.00 | |
| Total | 72,903,193.84 | 144,576,715.88 |
Explanation on other cash paid in relation to financing activities: NilChanges in liability arising from financing activities?Applicable □Not applicable
In RMB
| Item | Beginning balance | Current increase | Current decrease | Ending balance | ||
| Changes in cash | Changes in non-cash | Changes in cash | Changes in non-cash | |||
| Short-term borrowing | 838,889,557.51 | 211,155,360.59 | 46,291,542.90 | 712,517,972.14 | 16,201,589.48 | 367,616,899.38 |
| Long-term borrowing | 299,800,000.00 | 199,800,000.00 | 100,000,000.00 | |||
| Non-current liability maturing within one year | 38,084,321.10 | 215,415,677.91 | 39,297,535.66 | 214,202,463.35 | ||
| Lease liability | 37,733,196.51 | 6,192,113.56 | 9,531,840.61 | 34,393,469.46 | ||
| Total | 1,214,507,075.12 | 211,155,360.59 | 267,899,334.37 | 751,815,507.80 | 225,533,430.09 | 716,212,832.19 |
(4) Explanation on cash flow listed at net amount
Nil
(5) Significant activities and financial impacts that do not involve current cash inflows and outflows butaffect the financial condition of the enterprise or may affect the cash flow of the enterprise in the futureNil
63. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
| Supplementary information | Current Period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 1,001,587,824.42 | 982,314,812.15 |
| Add: Asset impairment provision | 63,312,643.64 | 91,110,262.76 |
| Depreciation of fixed asset, consumption of oil asset and depreciation of productive biology asset | 282,824,515.77 | 259,623,099.39 |
| Depreciation of right-of-use asset | 8,189,471.05 | 6,380,517.86 |
| Amortization of intangible asset | 36,545,321.55 | 32,426,362.30 |
| Amortization of long-term deferred expenses | 4,236,889.73 | 2,091,207.90 |
| Loss from disposal of fixed asset, intangible asset and other long-term asset (gain shall be filled in with the sign of “-”) | -5,859,201.49 | -125,530,905.04 |
| Loss on scrapping of fixed asset(gain shall be filled in with the sign of “-”) | 385,321.29 | 661,923.94 |
| Gain/loss of fair value changes(gain shall be filled in with the sign of “-”) | 105,956,110.61 | 18,069,553.29 |
| Financial expenses(gain shall be filled in with the sign of “-”) | 10,831,104.48 | -11,447,977.73 |
| Investment loss (gain shall be filled in with the sign of “-”) | -771,867,533.39 | -812,762,229.33 |
| Decrease of deferred income tax asset(increase shall be filled in with the sign of “-”) | -15,433,648.34 | 1,793,420.95 |
| Increase of deferred income tax liability(decrease shall be filled in with the sign of “-”) | 4,329,953.42 | 3,135,839.77 |
| Decrease of inventory(increase shall be filled in with the sign of “-”) | 110,740,083.45 | 372,883,000.74 |
| Decrease of operating receivable accounts (increase shall be filled in with the sign of “-”) | -46,728,537.49 | 370,183,379.30 |
| Increase of operating payable accounts(decrease shall be filled in with the sign of “-”) | 95,327,334.27 | -108,140,333.37 |
| Other | 3,514,664.40 | 7,169,302.54 |
| Net cash flows arising from operating activities | 887,892,317.37 | 1,089,961,237.42 |
| 2. Major investments and financing activities that do not involve cash receipts and payments | ||
| Debt-to-capital | ||
| Convertible bonds maturing within one year | ||
| Financing to lease fixed asset | ||
| 3. Net change of cash and cash equivalents: | ||
| Balance of cash at reporting period end | 1,874,301,039.39 | 2,387,464,673.97 |
| Less: Balance of cash equivalent at year-begin | 2,061,986,694.41 | 2,277,117,604.82 |
| Add: Balance at year-end of cash equivalents | ||
| Less: Balance at year-begin of cash equivalents | ||
| Net increase of cash and cash equivalents | -187,685,655.02 | 110,347,069.15 |
(2) Net cash payment for the acquisition of subsidiaries in the reporting periodOther explanation: Nil
(3) Net cash received from the disposal of subsidiaries
Other explanation: Nil
(4) Constitution of cash and cash equivalent
In RMB
| Item | Ending balance | Opening balance |
| I. Cash | 1,874,301,039.39 | 2,061,986,694.41 |
| Including: Cash on hand | 3,066.79 | 6,343.24 |
| Bank deposit available for payment at any time | 1,874,297,972.60 | 2,061,980,351.17 |
| II. Balance of cash and cash equivalents at the period-end | 1,874,301,039.39 | 2,061,986,694.41 |
Other explanation: The difference between the bank deposits that can be used for payment at any time and the bank deposits inNote –VII.1 "Monetary Funds" refers to the fixed deposits deposited by the Company into the bank.
(5) Items whose application scope is restricted but are still listed as cash and cash equivalentsNil
(6) Monetary items not belonging to cash and cash equivalents
In RMB
| Item | Current Period | Last Period | Reasons for not belonging to cash and cash equivalents |
| Bank deposit--Bank fixed deposits | 709,651,656.51 | 100,000,000.00 | Not meeting the definition of cash and cash equivalents |
| Other monetary fund - USD margin for foreign exchange contracts | 18,840,000.00 | Not meeting the definition of cash and cash equivalents | |
| Other monetary fund -Notes pledge for bank acceptance | 128,231,135.19 | 12,066,812.90 | Not meeting the definition of cash and cash equivalents |
| Other monetary fund -IRD performance bond | 7,673,250.00 | 7,935,750.00 | Not meeting the definition of cash and cash equivalents |
| Other monetary fund - Cash deposit for Mastercard | 204,620.00 | 211,620.00 | Not meeting the definition of cash and cash equivalents |
| Other monetary fund - ETC freezing | 4,000.00 | 5,000.00 | Not meeting the definition of cash and cash equivalents |
| Other monetary fund -Foreign exchange funds in transit | 4,585,442.40 | Not meeting the definition of cash and cash equivalents | |
| Other monetary fund -In-transit dividends | 1,309,380.00 | 1,262,280.00 | Not meeting the definition of cash and cash equivalents |
| Total | 851,659,484.10 | 140,321,462.90 |
Other explanation: Nil
(7) Notes to other significant activities
Nil
64. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil
65. Item of foreign currency
(1) Item of foreign currency
In RMB
| Item | Ending balance of foreign currency | Rate of conversion | Ending RMB balance converted |
| Monetary funds | |||
| Including: USD | 16,285,629.19 | 7.1268 | 116,064,427.21 |
| EUR | 33,935,744.06 | 7.6617 | 260,005,312.82 |
| HKD | 8,322,447.55 | 0.91268 | 7,595,731.43 |
| JPY | 23,112,182.00 | 0.044738 | 1,033,992.80 |
| DKK | 10,416,593.11 | 1.0231 | 10,657,216.41 |
| Account receivable | |||
| Including: USD | 3,465,962.85 | 7.1268 | 24,701,224.04 |
| EUR | 28,553,346.72 | 7.6617 | 218,767,176.56 |
| HKD | |||
| JPY | 8,393,745.00 | 0.044738 | 375,519.36 |
| DKK | 12,119,424.99 | 1.0231 | 12,399,383.71 |
| Long-term borrowings | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Other account receivables | |||
| Including: USD | 130.00 | 7.1268 | 926.48 |
| EUR | 209,060.06 | 7.6617 | 1,601,755.46 |
| DKK | 2,529,970.01 | 1.0231 | 2,588,412.32 |
| Account payable | |||
| Including: USD | 1,268,290.44 | 7.1268 | 9,038,852.31 |
| EUR | 27,088,185.10 | 7.6617 | 207,541,547.78 |
| JPY | 10,088,612.00 | 0.044738 | 451,344.32 |
| CHF | 87,388.49 | 7.9471 | 694,485.07 |
| GBP | 2,450.00 | 9.043 | 22,155.35 |
| DKK | 24,034,162.32 | 1.0231 | 24,589,351.47 |
| Other account payable | |||
| Including: USD | 1,087.90 | 7.1268 | 7,753.25 |
| EUR | |||
| DKK | |||
| Non-current liability due within one year | |||
| Including: USD | 156,471.72 | 7.1268 | 1,115,142.65 |
| EUR | 546,267.95 | 7.6617 | 4,185,341.15 |
| DKK | 1,630,830.84 | 1.0231 | 1,668,503.03 |
| Leasing liability | |||
| Including: USD | 150,930.11 | 7.1268 | 1,075,648.71 |
| EUR | 870,260.74 | 7.6617 | 6,667,676.71 |
| DKK | 18,619,783.47 | 1.0231 | 19,049,900.47 |
(2) Explanation on foreign operational entities, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons?Applicable □Not applicableSubsidiary of the Company, IRD, was established in Denmark in 1996. The 66% equity of IRD were acquired by the Company incash in April 2019. In October 2020, the Company acquired the remaining 34.00% equity of IRD in cash, thus the Company holds
100% equity of IRD. IRD is denominated in Danish krone, and IRD is mainly engaged in R&D, production and sales of fuel cellcomponents.Subsidiary Borit was established in Belgium in 2010. The Company acquired 100% equity of Borit in cash in November 2020.Borit is denominated in Euro and engaged in R&D, production and sales of fuel cell components.Subsidiary VHIO was established in Italy in 2000. The Company acquired 100.00% equity of VHIO in cash in October 2022. TheCompany is denominated in Euro and engaged in R&D, production, and sales of vacuum and hydraulic pumps.
66. Lease
(1) The Company as the lessee
?Applicable ?Not applicableVariable lease payments not included in the measurement of lease liability
□Applicable ?Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value asset?Applicable □Not applicableSimplified handling of short-term leasing or low value asset leasing expenses: 2,339,542.40 yuan; The total cash outflow related toleasing is 11,848,817.62 yuan.Please refer to Note VII-16, "Right of Use Asset," for relevant information on right of use asset.Situations involving lease sales-back: Nil
(2) The Company as the lessor
Operating lease with the Company as the lessor?Applicable □Not applicable
In RMB
| Item | Rental income | Including: income related to variable lease payments not included in rental income |
| Rental of houses and equipment | 13,248,232.37 | |
| Total | 13,248,232.37 |
Financing lease with the Company as the lessor
□Applicable ?Not applicable
Annual un-discounted rental income for the next five years
□Applicable ?Not applicable
Adjustment table for un-discounted rental income and net lease investments: Nil
(3) Recognize gain/loss arising from financing lease sale with the Company as producer or dealer
□Applicable ?Not applicable
67. Data resource
Nil
68. Others
Nil
VIII. R&D expenditure
In RMB
| Item | Current Period | Last Period |
| Employee compensation | 136,777,851.37 | 134,011,455.17 |
| Direct investment | 78,083,296.26 | 103,953,647.89 |
| Depreciation and amortization | 52,746,394.50 | 61,343,218.60 |
| Other | 34,625,743.21 | 52,578,716.46 |
| Total | 302,233,285.34 | 351,887,038.12 |
| Including: expensed R&D expenditure | 302,233,285.34 | 351,887,038.12 |
1. R&D items that meet capitalization conditions
Nil
2. Important outsourced projects under research
NilIX. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the reporting periodNil
(2) Consolidation cost and goodwill
Nil
(3) Book value of asset and liability of the merged party on the merger date
Nil
(4) Gain or loss arising from re-measured by fair value for the equity held before purchasing dateWhether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rightsin the reporting period or not
□Yes ?No
(5) Notes relating to the merge date or the end of the reporting period in which the merger considerationor the fair value of the merged party’s identifiable asset and liability cannot be reasonable determinedNil
(6) Other explanation
Nil
2. Enterprise combination under the same control
(1) Enterprise combination under the same control that occurred in the current periodOther explanation: Nil
(2) Consolidation cost
Nil
(3) Book value of asset and liability of the merged party on the merger date
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes ?No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during thereporting period
□Yes ?No
5. Changes in the scope of consolidation due to other reasons
Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary, subsidiaryliquidation, etc.) and related information:
Investment establishment: Weifu Zhigan (Wuxi) Technology Co., Ltd., Weifu Lianhua Automotive Parts (Fuzhou) Co., Ltd
6. Others
Nil
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
In ten thousand yuan
| Subsidiary | Registered capital | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | ||||||
| WFJN | 34,628.68 | Nanjing | Nanjing | Spare parts of internal-combustion engine | 80.00% | Enterprise combines under the same control | |
| WFLD | 50,259.63 | Wuxi | Wuxi | Automobile exhaust purifier, muffler | 94.81% | Enterprise combines under the same control | |
| WFMA | 16,500 | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
| WFCA | 21,000 | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
| WFTR | 3,000 | Wuxi | Wuxi | Trading | 100.00% | Enterprise combines under the same control | |
| WFSC | 7,600 | Wuxi | Wuxi | Spare parts of internal-combustion engine | 66.00% | Investment | |
| WFTT | 11,136 | Ningbo | Ningbo | Spare parts of internal-combustion engine | 98.83% | 1.17% | Enterprise combines not under the same control |
| WFAM | USD3,310 | Wuxi | Wuxi | Spare parts of internal-combustion engine | 51.00% | Enterprise combines not under the same control | |
| WFLD (Wuhan) | 1,000 | Wuhan | Wuhan | Automobile exhaust purifier, muffler | 60.00% | Investment | |
| WFLD (Chongqing) | 5,000 | Chongqing | Chongqing | Automobile exhaust purifier, muffler | 100.00% | Investment | |
| WFLD (Nanchang) | 5,000 | Nanchang | Nanchang | Automobile exhaust purifier, muffler | 100.00% | Investment | |
| WFAS | 10,000 | Wuxi | Wuxi | Smart car equipment | 66.00% | Investment | |
| WFLH | 2,000 | Fuzhou | Fuzhou | Intelligent onboard equipment | 40.00% | Investment | |
| WFDT | USD2,000 | Wuxi | Wuxi | Hub Motor | 80.00% | Enterprise combines not under the same control | |
| WFQL | 50,000 | Wuxi | Wuxi | Fuel cell components | 45.00% | 30.00% | Investment |
| VHWX | 13,400 | Wuxi | Wuxi | Vacuum and hydraulic pump | 100.00% | Enterprise combines not under the same control | |
| WFSS | 35,000 | Wuxi | Wuxi | Intelligent onboard equipment | 61.43% | Investment | |
| SPV | DKK9,257 | Denmark | Denmark | Investment | 100.00% | Investment | |
| IRD | DKK10,579 | Denmark | Denmark | Fuel cell components | 100.00% | Enterprise combines not under the same control | |
| IRD America | USD1,201.83 | America | America | Fuel cell components | 100.00% | Enterprise combines not under the same control | |
| Borit | EUR1,183.21 | Belgium | Belgium | Fuel cell components | 100.00% | Enterprise combines not under the same control | |
| Borit America | USD0.10 | America | America | Fuel cell components | 100.00% | Enterprise combines not under the same control | |
| VHIO | EUR500 | Italy | Italy | Vacuum and hydraulic pump | 100.00% | Enterprise combines not under the same control |
Explanation on share-holding ratio in subsidiary different from ratio of voting right: NilBasis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the voting rightsbut not controlling the investee: NilControl basis for inclusion in the scope of consolidation of significant structured entities: NilBasis for determining whether a Company is an agent or a principal: NilOther explanation: Nil
(2) Important non-wholly-owned subsidiary
In RMB
| Subsidiary | Share-holding ratio of minority | Gain/loss attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| WFJN | 20.00% | 10,272,101.63 | 241,758,016.59 | |
| WFLD | 5.19% | 11,395,939.12 | 176,918,768.17 | |
| Total | 21,668,040.75 | 418,676,784.76 |
Explanation on holding ratio different from the voting right ratio for minority shareholders: NilOther explanation: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsi | Ending balance | Opening balance |
| diary | Current asset | Non-current asset | Total asset | Current liability | Non-current liability | Total liability | Current asset | Non-current asset | Total asset | Current liability | Non-current liability | Total liability |
| WFJN | 943,938,330.32 | 648,642,352.39 | 1,592,580,682.71 | 350,278,308.20 | 32,816,414.21 | 383,094,722.41 | 800,008,834.76 | 763,327,722.52 | 1,563,336,557.28 | 372,678,469.77 | 32,816,414.21 | 405,494,883.98 |
| WFLD | 4,464,904,447.52 | 1,489,443,861.25 | 5,954,348,308.77 | 2,888,085,143.32 | 16,576,918.48 | 2,904,662,061.80 | 3,887,564,531.99 | 1,588,909,706.92 | 5,476,474,238.91 | 2,658,216,800.87 | 20,989,867.90 | 2,679,206,668.77 |
| Total | 5,408,842,777.84 | 2,138,086,213.64 | 7,546,928,991.48 | 3,238,363,451.52 | 49,393,332.69 | 3,287,756,784.21 | 4,687,573,366.75 | 2,352,237,429.44 | 7,039,810,796.19 | 3,030,895,270.64 | 53,806,282.11 | 3,084,701,552.75 |
In RMB
| Subsidiary | Current Period | Last Period | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| WFJN | 358,340,142.20 | 51,211,227.09 | 51,211,227.09 | 41,046,920.99 | 362,347,975.32 | 140,705,646.86 | 140,705,646.86 | -860,079.84 |
| WFLD | 1,846,296,992.48 | 242,294,718.16 | 242,294,718.16 | 721,730,160.17 | 2,175,323,269.69 | 71,083,391.94 | 71,083,391.94 | 455,043,631.50 |
| Total | 2,204,637,134.68 | 293,505,945.25 | 293,505,945.25 | 762,777,081.16 | 2,537,671,245.01 | 211,789,038.80 | 211,789,038.80 | 454,183,551.66 |
Other explanation: Nil
(4) Significant restrictions on the use of enterprise group asset and pay off debts of the enterprise groupNil
(5) Financial or other supporting offers to the structured entity included in consolidated financialstatement rangeNilOther explanation: Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
(1) Owners’ equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent CompanyOther explanation: Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
| Directly | Indirectly | |||||
| Wuxi Weifu Environmental Catalysts. Co., Ltd. | Wuxi | Wuxi | Catalyst | 49.00% | Equity method | |
| RBCD | Wuxi | Wuxi | Internal-combustion engine accessories | 32.50% | 1.50% | Equity method |
| Zhonglian Automobile Electronics Co., Ltd. | Shanghai | Shanghai | Internal-combustion engine accessories | 20.00% | Equity method | |
| Wuxi Weifu Precision Machinery Manufacturing Company Limited | Wuxi | Wuxi | Internal-combustion engine accessories | 20.00% | Equity method | |
| Changchun Xuyang Weifu Automobile Components Technology Co., Ltd. | Changchun | Changchun | Automobile components | 34.00% | Equity method | |
| Precors GmbH | Germany | Germany | Fuel cell components | 43.39% | Equity method | |
| Wuxi ChelianTianxia Information Technology Co., Ltd. | Wuxi | Wuxi | Telematics services | 9.6372% | Equity method | |
| Lezhuo Bowei Hydraulic Technology (Shanghai) Co., Ltd | Shanghai | Shanghai | Automobile components | 50.00% | Equity method | |
| Wuxi Zhuowei Times High Tech Co., Ltd | Wuxi | Wuxi | Catalyst | 39.00% | 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:
The Company holds 9.6372% equity of Chelian Tianxia, and appointed director to Chelian Tianxia. Though the representative, theCompany can participate in the operation policies formulation of Chelian Tianxia, and thus exercise a significant influence overChelian Tianxia.
(2) Main financial information of the important joint venture
Other explanation: Nil
(3) Main financial information of the important associated enterprise
In RMB
| Ending balance/Current Period | Opening balance/Last Period | |||||
| WFEC | RBCD | Zhonglian Electronics | WFEC | RBCD | Zhonglian Electronics | |
| Current asset | 2,839,051,141.17 | 13,444,988,412.78 | 1,424,566,139.19 | 3,309,330,261.33 | 13,057,353,298.24 | 156,804,165.22 |
| Including: cash and cash equivalent | 526,911,450.21 | 28,603,959.04 | 78,786,839.55 | 695,880,608.87 | 16,224,264.19 | 131,177,239.01 |
| Non -current asset | 405,916,252.43 | 3,331,988,685.42 | 8,259,572,638.37 | 417,489,997.17 | 3,452,708,227.20 | 8,276,183,030.91 |
| Total asset | 3,244,967,393.60 | 16,776,977,098.20 | 9,684,138,777.56 | 3,726,820,258.50 | 16,510,061,525.44 | 8,432,987,196.13 |
| Current liability | 1,215,794,214.26 | 9,093,751,284.38 | 1,333,753,910.26 | 1,402,974,842.29 | 8,401,045,934.29 | 7,530,191.60 |
| Non-current liability | 186,765,920.54 | 4,952,865.96 | 455,453,890.82 | 4,983,100.68 | ||
| Total liability | 1,402,560,134.80 | 9,093,751,284.38 | 1,338,706,776.22 | 1,858,428,733.11 | 8,401,045,934.29 | 12,513,292.28 |
| Minority interests | ||||||
| Attributable to parent Company shareholders’ equity | 1,842,407,258.80 | 7,683,225,813.82 | 8,345,432,001.34 | 1,868,391,525.39 | 8,109,015,591.15 | 8,420,473,903.85 |
| Share of net asset calculated by shareholding ratio | 902,779,556.82 | 2,612,296,776.70 | 1,669,086,400.27 | 915,511,847.44 | 2,757,065,300.99 | 1,684,094,780.77 |
| Adjustment matters | ||||||
| --Goodwill | 267,788,761.35 | 1,407,265.96 | 267,788,761.35 | 1,407,265.96 | ||
| --Unrealized profit of internal trading | -8,984,352.76 | -9,546,770.23 | ||||
| --Other | -0.28 | -0.28 | ||||
| Book value of equity investment in associated enterprise | 902,779,556.82 | 2,871,101,185.01 | 1,670,493,666.23 | 915,511,847.44 | 3,015,307,291.83 | 1,685,502,046.73 |
| Fair value of equity investment for the affiliates with consideration publicly | ||||||
| Operating income | 1,846,803,762.77 | 5,271,654,599.19 | 17,135,271.43 | 1,767,599,633.82 | 6,130,896,971.82 | 12,971,075.74 |
| Net profit | 221,785,840.51 | 1,100,633,775.00 | 1,254,847,847.50 | 166,314,657.54 | 1,418,441,731.89 | 896,728,440.91 |
| Net profit from discontinued operations | ||||||
| Other comprehensive income | ||||||
| Total comprehensive income | 221,785,840.51 | 1,100,633,775.00 | 1,254,847,847.50 | 166,314,657.54 | 1,418,441,731.89 | 896,728,440.91 |
| Financial expense | 410,762.90 | -26,252,360.74 | -757,333.28 | 9,020,578.19 | 75,025,833.08 | -1,076,733.34 |
| Income tax expense | 39,071,680.16 | 177,111,813.24 | 2,262,036.62 | 25,702,009.08 | 227,856,975.09 | 1,428,554.30 |
| Dividends received from associated enterprise in the year | 49,000,000.00 |
(4) Financial summary for non-important joint venture and associated enterprise
In RMB
| Ending balance/Current Period | Opening balance/Last Period | |
| Joint venture: | ||
| Amount based on share-holding ratio | ||
| Associated enterprise: | ||
| Total book value of investment | 449,896,704.04 | 351,004,139.17 |
| Amount based on share-holding ratio | ||
| --Net profit | -12,695,105.24 | -1,393,571.96 |
| --Total comprehensive income | -12,695,105.24 | -1,393,571.96 |
(5) Major limitation on capital transfer ability to the Company from joint venture or associatedenterpriseNil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or associated enterprise investment concerned
Nil
4. Major joint operation
Nil
5. Structured body excluding in consolidated financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil
6. Other
Nil
XI. Government grant
1. Government grant recognized at report ending in terms of amount receivable
□Applicable ?Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable ?Not applicable
2. Liability involved with government grant
?Applicable □Not applicable
In RMB
| Accounting title | Opening balance | Current increase in government grant | Amount booked into non-business income in current period | Amount carried forward to other income | Other changes in current period | Ending balance | Asset/income related |
| Deferred income | 95,864,426.07 | 3,909,446.20 | 14,599,514.36 | 85,174,357.91 | Asset related | ||
| Deferred income | 2,913,862.75 | 25,000.00 | 2,888,862.75 | Asset/income related | |||
| Deferred income | 89,995,333.47 | 12,188,009.01 | 22,248,353.44 | -162,716.70 | 79,772,272.34 | Income related | |
| Total | 188,773,622.29 | 16,097,455.21 | 36,872,867.80 | -162,716.70 | 167,835,493.00 |
3. Government grant booked into current gain/loss
?Applicable □Not applicable
In RMB
| Accounting title | Current Period | Last Period |
| Other revenue | 40,309,960.72 | 35,592,303.00 |
XII. Risk related with financial instrument
1. Various risks arising from financial instruments
Main financial instruments of the Company include monetary funds, structured deposits, account receivable, equity instrumentinvestment, financial products, loans, and account payable. For more details of the financial instruments, refer to relevant items ofNote VII. Risks concerned with the above-mentioned financial instruments, and measures taken by the Company to prevent suchrisks are as follow:
The risk management by the Company is targeted to balance risk and benefit, minimize the adverse impact on performance of theCompany and maximize the benefits of shareholders and other investors. On such basis, the basic tactics of the risk management is to
recognize and analyze risks faced by the Company, establish appropriate risk exposure baseline for risk management, and superviserisks timely and reliably in order to control risks in a limited range.During the operation process, risks faced by the Company related to financial instruments mainly include credit risk, market risk, andliquidity risk. BOD of the Company takes full charge of defining risk management target and polices, and takes ultimateresponsibilities for the target of risk management and policies. The compliance department and financial control department manageand supervise risk exposures to control risks in a limited range.
(1) Credit Risk
Credit risk arises in case one party of a financial instrument fails to perform its obligations, resulting in the financial loss of otherparty. The Company’s credit risk mainly comes from monetary funds, structured deposits, note receivable, account receivable andother accounts receivable. The management has established appropriate credit policies and kept monitoring the exposure to thesecredit risks.The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions such ascommercial banks. The management believes that these commercial banks have higher credit and asset status and lower creditrisks. The Company adopts quota policies to avoid credit risks from any financial institutions.For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the credit riskexposure. To prevent risks, the Company has formulated a new customer credit evaluation system and an existing customer creditsales balance analysis system. For new customers, the Company performs background investigation according to the establishedprocess to determine whether to offer such customer a credit line, the scale of credit line as well as credit period. Accordingly, theCompany has set a credit limit and a credit period for each customer, which is the maximum amount that does not requireadditional approval. For the analysis system for credit sales balance of existing customers, after receiving a purchase order from anexisting customer, the Company will check the order amount and the balance of the accounts owed by such customer. If the total ofthe two exceeds the credit limit of the customer, the Company can only sell to the customer on the premise of additional approvalof credit line and otherwise the customer will be required to pay the corresponding amount in advance. In addition, for the creditsales that have occurred, the Company analyzes and audits the monthly statements for risk warning of accounts receivable toensure that the Company’s overall credit risk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance sheet.
(2) Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow fluctuates with thechanging market price, mainly including interest rate risk, foreign exchange risk and other price risk.
(1) Interest rate risk
Interest rate risk indicates that the Company’s financial status and cash flow fluctuate with the changing market interest rate. Theinterest rate risk of the Company is mainly related with the bank loans. In order to lower the impact of risks of fluctuating interestrate, the Company, in consideration of the expected change orientation of interest rate, chooses floating rate or fixed rate. TheCompany will choose fixed interest rate if the interest rate is expected to go up in the future period, and alternatively choosefloating interest rate if the interest rate is expected to go up in the future period. In order to minimize the adverse impact if thechange trend of interest rate is out of expectation, the Company selects short-term borrowings to satisfy its demands for liquidityand there are special provisions for early repayment.
(2) Foreign exchange risk
Foreign exchange risk refers to the loss arising from fluctuation of exchange rate. The foreign exchange risk posed to theCompany is mainly related to USD, EUR, CHF, JPY, HKD and DKK. The procurement of equipment by the parent Company andWFAM, the material purchasing of the parent Company, the payment of technical service expense and trademark royalty of the
parent Company, the import and export of WFTR, as well as the operation of IRD, Borit, and VHIO are settled in USD, EUR,CHF, JPY, HKD and DKK. Other main businesses of the Company are priced and settled in RMB (yuan). As the foreign financialasset and liability takes minor ratio in total asset, the Company’s management believes that the foreign exchange rate of is lower.As of June 30, 2024 except for the following asset or liability listed with foreign currency, asset and liability of the Company arecarried with RMB.
① Foreign currency asset of the Company till end of June 30, 2024:
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in asset (%) |
| Monetary funds | ||||
| Including: USD | 16,285,629.19 | 7.1268 | 116,064,427.21 | 0.42 |
| EUR | 33,935,744.06 | 7.6617 | 260,005,312.82 | 0.93 |
| HKD | 8,322,447.55 | 0.91268 | 7,595,731.43 | 0.03 |
| JPY | 23,112,182.00 | 0.044738 | 1,033,992.80 | - |
| DKK | 10,416,593.11 | 1.0231 | 10,657,216.41 | 0.04 |
| Account receivable | ||||
| Including: USD | 3,465,962.85 | 7.12680 | 24,701,224.04 | 0.09 |
| EUR | 28,553,346.72 | 7.66170 | 218,767,176.56 | 0.78 |
| JPY | 8,393,745.00 | 0.044738 | 375,519.36 | - |
| DKK | 12,119,424.99 | 1.02310 | 12,399,383.71 | 0.04 |
| Other account receivables | ||||
| Including: USD | 130.00 | 7.1268 | 926.48 | - |
| EUR | 209,060.06 | 7.6617 | 1,601,755.46 | 0.01 |
| DKK | 2,529,970.01 | 1.0231 | 2,588,412.32 | 0.01 |
| Total ratio in asset | 2.35 |
② Foreign currency liability of the Company till end of June 30, 2024:
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in asset(%) |
| Account payable | ||||
| Including: USD | 1,268,290.44 | 7.1268 | 9,038,852.31 | 0.12 |
| EUR | 27,088,185.10 | 7.6617 | 207,541,547.78 | 2.71 |
| JPY | 10,088,612.00 | 0.044738 | 451,344.32 | 0.01 |
| DKK | 24,034,162.32 | 1.0231 | 24,589,351.47 | 0.32 |
| GBP | 2,450.00 | 9.0430 | 22,155.35 | |
| CHF | 87,388.49 | 7.9471 | 694,485.07 | 0.01 |
| Other account payable | ||||
| Including: EUR | 1,087.90 | 7.1268 | 7,753.25 | |
| DKK | ||||
| Non-current liability due within one year | ||||
| Including: USD | 156,471.72 | 7.1268 | 1,115,142.65 | 0.01 |
| EUR | 546,267.95 | 7.6617 | 4,185,341.15 | 0.05 |
| DKK | 1,630,830.84 | 1.0231 | 1,668,503.03 | 0.02 |
| Leasing liability | ||||
| Including USD | 150,930.11 | 7.1268 | 1,075,648.71 | 0.01 |
| EUR | 870,260.74 | 7.6617 | 6,667,676.71 | 0.09 |
| DKK | 18,619,783.47 | 1.0231 | 19,049,900.47 | 0.25 |
| Total ratio in liability | 3.60 |
③ Other pricing risk
The equity instrument investment held by the Company with classification as transaction financial asset and other non-currentfinancial asset is measured on fair value of the balance sheet date. The fluctuation of expected price for these investments willaffect the gain/loss of fair value changes for the Company.Furthermore, on the premise of deliberated and approved in 10
th meeting of 23
rdsession of the BOD and 2023 Annual GeneralMeeting of Shareholders, the Company exercise entrust financing with the self-owned idle capital; therefore, the Company has therisks of collecting no principal due to entrust financial products default. Aims at such risk, the Company formulated theManagement Mechanism of Capital Financing, and well-defined the authority to entrust financial management, audit process,reporting system, Choice of trustee, daily monitoring and verification and investigation of responsibility, etc. In order to lower theadverse impact from unpredictable factors, the Company choose short-term and medium period for investment and investmentproduct’s term is up to 5 years in principle; The variety of investment includes bank financial products, trust plans of trustcompanies, asset management plans of asset management companies, various products issued by securities companies, fundcompanies and insurance companies, etc.
(3) Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the enterprise in way of cashpaid or other financial asset. The Company aims at guarantee the Company has rich capital to pay the due debts, therefore, a financialcontrol department is established for collectively controlling such risks. On the one hand, the financial control department monitoringthe cash balance, the marketable securities which can be converted into cash at any time and the rolling forecast on cash flow infuture 12 months, ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the other hand,building a favorable relationship with the banks, rationally design the line of credit, credit products and credit terms, guarantee asufficient limit for bank credits in order to satisfy vary short-term financing requirements.
2. Hedge
(1) Risk management for hedge business
□Applicable ?Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
Other explanation: Nil
(3) The Company conducts hedging business for risk management. It is expected to achieve riskmanagement goals but has not applied hedging accounting
□Applicable ?Not applicable
3.Financial asset
(1) By transfer manner
?Applicable □Not applicable
In RMB
| Transfer method | Nature of transferred financial asset | Amount of transferred financial asset | Derecognized or not | Judgment basis for derecognition |
| Bill | Bank acceptance bills in accounts | 195,820,141.64 | Derecognized | Almost all of its risks and |
| endorsement | receivable financing that have not yet matured | rewards have been transferred | ||
| Bill discounting | Bank acceptance bills in accounts receivable financing that have not yet matured | 420,843,143.82 | Derecognized | Almost all of its risks and rewards have been transferred |
| Total | 616,663,285.46 |
(2) Financial asset derecognized due to transfer
?Applicable □Not applicable
In RMB
| Item | Methods of transferring financial asset | Amount of derecognized financial asset | Gain/loss related to de-recognition |
| Accounts receivable financing | Bill endorsement | 195,820,141.64 | |
| Accounts receivable financing | Bill discounting | 420,843,143.82 | -2,198,912.35 |
| Total | 616,663,285.46 | -2,198,912.35 |
(3) Financial asset which are transferred and involved continuously
?Applicable □Not applicableOther explanation: NilXIII. Disclosure of fair value
1. Ending fair value of the asset and liability measured by fair value
In RMB
| Item | Ending fair value | |||
| First level | Second level | Third level | Total | |
| I. Sustaining measured at fair value | -- | -- | -- | -- |
| (I) Financial asset measured at fair value and whose changes are included in current profit or loss | 96,974,728.00 | 2,004,343,254.20 | 2,101,317,982.20 | |
| 1. Trading financial asset | 96,010,728.00 | 1,335,706,329.05 | 1,431,717,057.05 | |
| (1)Investment in equity instrument | 96,010,728.00 | 96,010,728.00 | ||
| (2)Investment in other liability instruments and equity instrument | 1,335,706,329.05 | 1,335,706,329.05 | ||
| 2. Other non-current financial asset | 964,000.00 | 668,636,925.15 | 669,600,925.15 | |
| (1)Equity instrument investment | 964,000.00 | 668,636,925.15 | 669,600,925.15 | |
| (II) Financial asset measured at fair value and whose changes are included in current profit or loss | 2,539,397,639.90 | 2,539,397,639.90 | ||
| 1. Receivable financing | 1,861,606,949.90 | 1,861,606,949.90 | ||
| 2. Other equity instrument investment | 677,790,690.00 | 677,790,690.00 | ||
| Total asset sustaining measured by fair value | 96,974,728.00 | 4,543,740,894.10 | 4,640,715,622.10 | |
| II. Non-persistent measure of fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on firstlevel
On June 30, 2024, the financial asset available for sale, equity instrument investments held by the Company include SNAT (stockcode: 600841) and Miracle Automation (Stock code: 002009). The fair value at the end of the reporting period is determined at theclosing price as of June 28, 2024.On June 30, 2024, the non-current financial asset, equity instrument investments held by the Company include Guolian Securities(stock code: 601456). The fair value at the end of the reporting period is determined at the closing price as of June 28, 2024.
3. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on second level
Nil
4. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on third level
(1) Accounts receivable financing
For this portion of financial asset, the Company uses discounted cash flow valuation techniques to determine their fair value.Among them, important unobservable input values mainly include discount rate, contract cash flow maturity period, etc. Cashflows with a contract expiration period of 12 months or less are not discounted and are valued at cost.
(2) Other equity instrument investments
For this portion of financial asset, due to the lack of market liquidity, the Company uses the reset cost method to determine theirfair value. Among them, important unobservable input values mainly include financial data of the invested Company.
(3) Other debt instruments and equity instrument investments
For this portion of financial asset, the Company uses discounted cash flow valuation techniques to determine. Among them,important unobservable input values mainly include expected annualized returns, risk coefficients, etc
5. Continuous third-level fair value measurement items, adjustment information between the openingand closing book value and sensitivity analysis of unobservable parametersNil
6. Continuous fair value measurement items, if there is a conversion between various levels in the currentperiod, the reasons for the conversion and the policy for determining the timing of the conversionNil
7. Changes in valuation technology during the current period and reasons for the changes
Nil
8. The fair value of financial asset and financial liability not measured by fair valueNil
9. Other
Nil
XIV. Related party and related party 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 asset | 5,927,940,200 yuan | 20.47% | 20.47% |
Explanation on parent Company of the enterprise:
Wuxi Industry Group is an enterprise controlled by the State-owned Asset Management Committee of Wuxi Municipal People’sGovernment. Its business scope includes foreign investment by using its own asset, house leasing services, self-operating andacting as an agent for the import and export business of various commodities and technologies (Except for goods and technologiesthat are restricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibiteditems). (Projects that are subject to approval in accordance with the law can be operated only after being approved by relevantdepartments).Ultimate controller of the Company is State-owned Asset Management Committee of Wuxi Municipal People’s Government.Other explanation: Nil
2. Subsidiary of the Company
For more details of the Company’s subsidiaries, please refer to note - X. 1 “Equity in subsidiary”.
3. Joint venture and associated enterprise
For more details, please refer to the relevant Note - X. 3 “Equity in joint venture and associated enterprise”.Other associated enterprise or joint ventures which has related transaction with the Company in the reporting period or occurredprevious are as follows:
Other explanation: Nil
4. Other related party
| Name of Other related party | Relationship between other related parties and the Company |
| Bosch | Second largest shareholder of the Company |
| Guokai Metal | Enterprises controlled by the parent Company |
| Urban Public Distribution | Enterprises controlled by the parent Company |
| FAILCONTECH | Enterprises controlled by the parent Company |
| Wuxi IOT | The parent Company is the major shareholder, and a related natural person of the Company serves as the chairman |
| EDRI | Enterprises controlled by the parent Company |
| Hebei Machinery | Enterprises controlled by the Company’s former director/senior management elder brother |
| Hebei Deshuang | Enterprises controlled by Hebei Machinery |
| Hebei Jinda | Enterprises controlled by Hebei Machinery |
| Hebei Lanpai | Enterprises controlled by Hebei Machinery |
| Hebei Mianzhuo | Enterprises controlled by Hebei Machinery |
| Key executive | Director, supervisor and senior executive of the Company |
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Content of related transaction | Current Period | Approved transaction limit | Whether more than the transaction limit (Y/N) | Last Period |
| WFPM | Goods and labor | 18,856,716.80 | 45,000,000.00 | N | 19,815,457.88 |
| RBCD | Goods and labor | 121,126,592.18 | 313,000,000.00 | N | 131,039,396.29 |
| WFEC | Goods and labor | 150,641,937.84 | 1,198,000,000.00 | N | 379,816,654.91 |
| Bosch | Goods and labor | 111,047,597.86 | 222,000,000.00 | N | 111,692,343.27 |
| Guokai Metals | Goods | N | 15,867,033.58 | ||
| EDRI | Goods | 28,301.89 | Y | ||
| FAILCONTECH | Goods | 14,500.00 | Y | ||
| Wuxi IOT | Goods and labor | 20,660.38 | Y |
Goods sold/labor service providing
In RMB
| Related party | Content of related transaction | Current Period | Last Period |
| WFPM | Goods and labor | 387,979.10 | 506,017.52 |
| RBCD | Goods and labor | 660,179,963.62 | 1,090,789,696.99 |
| WFEC | Goods and labor | 247,567.53 | 4,677,697.81 |
| Bosch | Goods and labor | 994,815,431.08 | 846,273,667.53 |
| Changchun Xuyang | Goods and labor | 506,713.80 | 678,183.20 |
| Lezhuo Bowei | Goods and labor | 5,155,881.45 | 222,373.51 |
Description of related transactions in the purchase and sale of goods, provision and acceptance of labor servicesNil
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
The Company as lessor:
In RMB
| Lessee | Asset type | Lease income recognized in the Period | Lease income recognized at last Period |
| WFEC | Workshop | 1,003,317.02 | 1,003,317.02 |
| RBCD | Parking lost | 234,000.00 | 110,200.00 |
| Lezhuo Bowei | Workshop and equipment | 1,548,658.50 | 1,057,234.32 |
The Company as lessee:
Explanation on related lease
WFLD entered into a house leasing contract with WFEC. The plant locating at No.9 Linjiang Road, Wuxi Xinwu District, owedby WFLD, was rented out to WFEC. It is agreed that the rental income from January 1, 2024 to June 30, 2024 was 1,003,317.02yuan.WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leased a portion of WFJN’s plant located at No. 12Liuzhou North Road, Pukou District, Nanjing City. The lease term is from January 1, 2023 to December 31, 2024. WFJN hasconfirmed the rental income of 1,411,858.50 yuan for the period from January 1, 2024 to June 30, 2024; Lezhuo Bowei also rentedsome equipment from WFJN, and WFJN confirmed equipment rental income of 136,800.00 yuan for the period from January 1,2024 to June 30, 2024.
(4) Connected guarantee
Nil
(5) Related party’s borrowed/lending funds
Nil
(6) Related party’s asset transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
| Item | Current Period | Last Period |
| Remuneration of key manager | 1,950,000.00 | 2,300,000.00 |
(8) Other related transactions
| Related party | Contents of item | Current Period | Last Period |
| Bosch | Pay technical commission fees, etc | 2,430,001.29 | 1,990,910.38 |
| Bosch | Purchase of fixed asset | 1,052,964.60 | |
| Bosch | Energy fees receivable | 393,590.45 | |
| WFPM | Purchase of fixed asset | 3,000.00 | 106,000.00 |
| WFEC | Utilities payable | 106,859.84 | 528,099.08 |
| WFEC | Payable technical service fees | 258,396.23 | |
| WFEC | Receivable technical service fees | 244,150.94 | |
| Urban public distribution | Purchase canteen ingredients, etc | 1,086,549.83 | 709,227.44 |
| Lezhuo Bowei | Energy fees receivable | 888,799.56 | 304,658.93 |
| Wuxi IOT | Provide technical services, etc | 374,764.15 |
(9) Related transactions to “platform trade” business
| Name of related party | Current Period | Last Period | ||
| Sales | Purchase fund | Sales | Purchase fund | |
| Hebei Machinery | ||||
| Name of related party | Current Period | Last Period | ||
| Sales | Purchase fund | Sales | Purchase fund | |
| Hebei Jinda | -56,753,804.02 | |||
| Hebei Deshuang | ||||
| Hebei Lanpai | ||||
| Hebei Mianzhuo | ||||
| Total | -56,753,804.02 | |||
Other explanation: Due to being under the control of Hebei Machinery and based on the essence of the “platform trade” business,WFTR listed the difference between the “purchase fund” paid to Hebei Jinda, Hebei Deshuang, Hebei Lanpai, and HebeiMianzhuo in the “platform trade” business and the “sales” received from Hebei Machinery as other receivables. The negative“purchase fund” paid by WFTR to Hebei Jinda in 2023 is the “purchase fund” returned by Hebei Jinda.
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt reserve | Book balance | Bad debt reserve | ||
| Account receivable | WFPM | 109,252.85 | 170,770.59 | ||
| Account receivable | RBCD | 732,084,006.85 | 1,170,780.48 | 686,424,501.80 | 1,017,817.82 |
| Account receivable | Bosch | 543,715,050.47 | 2,251,804.00 | 596,846,772.56 | 782,592.70 |
| Account receivables | WFEC | 1,487,356.00 | 60,930.00 | 1,787,498.57 | |
| Account receivable | Changchun Xuyang | 482,188.78 | 220,134.29 | ||
| Account receivables | Lezhuo Bowei | 4,631,585.33 | 74.07 | 3,520,841.22 | |
| Other non-current asset | Bosch | 2,255,998.16 | 2,500,307.00 | ||
| Other non-current asset | Bosch | 3,510,400.00 | 470,000.00 | ||
| Other non-current asset | Wuxi Industry Group | 5,452,800.00 | 5,452,800.00 | ||
| Prepayments | Bosch | 375,910.15 | |||
(2) Payable item
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| Account payable | WFPM | 13,222,902.48 | 15,511,126.97 |
| Other account payable | WFPM | 29,000.00 | 29,000.00 |
| Account payable | WFEC | 39,505,305.93 | 480,670,597.42 |
| Account payable | RBCD | 88,080,480.26 | 49,028,994.76 |
| Account payable | Bosch | 15,556,402.22 | 18,947,846.60 |
| Other current liability | RBCD | 0.05 | 0.05 |
| Contract liability | RBCD | 0.36 | 0.36 |
| Contract liability | Bosch | 7,397,963.98 | 6,986,398.10 |
(3) Related claims of “platform trade” business
| Item | Related party | Ending balance | Opening balance |
| Other receivables | Hebei Machinery | -2,125,487,770.72 | -2,125,487,770.72 |
| Other receivables | Hebei Jinda | 1,958,470,484.57 | 1,958,470,484.57 |
| Other receivables | Hebei Deshuang | 1,436,757,179.96 | 1,436,757,179.96 |
| Other receivables | Hebei Lanpai | 609,404,930.22 | 609,404,930.22 |
| Other receivables | Hebei Mianzhuo | 479,253,260.75 | 479,253,260.75 |
| Total | 2,358,398,084.78 | 2,358,398,084.78 |
Note: Because Hebei Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on thebusiness essence of "platform trade" business, WFTR listed the difference between the "purchase fund" paid by WFTR to HebeiJinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo and the "sales" received from Hebei Machinery 2,358,398,084.78 yuanas other receivables, including: The "sales payment" received from Hebei Machinery is presented as a negative number. As of June30, 2024, the Company has made a bad debt provision of 1,448,358,922.04 yuan for the balance of other receivables; The bad debtprovision balance is calculated by 80.10%, which is the proportion of other receivables balance of Hebei Machinery and itscontrolled companies 2,415,151,888.80 yuan to other receivables balance of WFTR's "platform trade" business portfolio2,741,499,131.95 yuan as of December 31, 2022 multiply the bad debt provision for other accounts receivable balances inWFTR’s "platform trade" business portfolio 1,644,068,327.93 yuan.
7. Undertakings of related party
Nil
8. Other
NilXV. Share-based payment
1. Overall situation of share-based payment
?Applicable □Not applicable
In RMB
| Category of grant object | Granted in current period | Executed in current period | Unlocked in current period | Expired in current period | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Sales staff | 184,740 | 2,268,607.20 | ||||||
| Administrative staff | 3,383,220 | 41,545,941.60 | ||||||
| R&D staff | 959,700 | 11,785,116.00 | ||||||
| Production staff | 648,840 | 7,967,755.20 | ||||||
| Total | 5,176,500 | 63,567,420.00 | ||||||
Stock options or other equity instruments issued to the public at the end of the reporting period
□Applicable ?Not applicable
Other explanation: Nil
2. Share-based payment settled by equity
?Applicable □Not applicable
In RMB
| Method for determining the fair value of equity instruments on the grant date | Determine based on the closing price of the restricted stock on the grant date |
| Important parameters for determining the fair value of equity instruments on the grant date | Closing price at grant date |
| Basis for determining the number of vesting equity instruments | Unlocking conditions |
| Reasons for the significant difference between estimate in the current period and estimate in the prior period | Not applicable |
| Cumulative amount of equity-settled share-based payments included in the capital reserve | 81,051,840.00 |
| Total amount of expenses confirmed by equity-settled share-based payments in the current period | 0.00 |
3. Share-based payment settled by cash
□ Applicable ? Not applicable
4. Current share-based payment expenses
□ Applicable ? Not applicable
5. Modification and termination of share-based payment
Nil
6. Other
NilXVI. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet dateNil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
3. Other
Nil
XVII. Events after the balance sheet date
1. Important non-adjustment matters
Nil
2. Profit distribution
| Proposed distribution of dividends per 10 shares(yuan) | 2.20 | |
| Plan to distribute every 10 bonus shares(share) | 0 | |
| Proposed allocation of additional shares for every 10 shares(share) | 0 | |
| The dividend payout for every 10 shares declared after review and approval(yuan) | 2.20 | |
| Every 10 dividend shares declared for distribution after review and approval(yuan) | 0 | |
| Proposed allocation of additional shares for every 10 shares after review and approval(share) | 0 | |
| Profit distribution plan | Based on the 971,986,293 shares which exclude the buy-back shares on buy-back account (25,000,000 A-stock) from total share capital 996,986,293 shares (According to the provisions of the The Company Law of the People's Republic of China, the listed Company does not have the right to participate in the profit distribution and the conversion of the capital reserve into the share capital by repurchasing the shares held by the Company through the special securities account), distributing 2.20 yuan (tax included) cash dividend for every 10 shares held, no bonus shares, without capitalization from capital reserves. The total amount of cash dividend to be paid is RMB 213,836,984.46 yuan (tax included). If the total share capital of the Company changes before the implementation of the distribution plan, the Company will be allocated according to the principle of unchanged distribution proportion and adjustment of the total amount of distribution. The above distribution plan complies with the provisions of the Company's Articles of association and review procedures, fully protecting the legitimate rights and interests of small and medium-sized investors. | |
3. Return of sales
Nil
4. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors correction
(1) Retrospective restatement
Nil
(2) Prospective application
Nil
2. Debt restructuring
Nil
3. Asset replacement
(1) Non-monetary asset replacement
Nil
(2) Other asset replacement
Nil
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8
th meeting of 7
thsession of the BOD: inorder to mobilize the initiative and creativity of the employees, established a talent long-term incentive mechanism, enhance thecohesive force and competitiveness in enterprise, the Company carried out the above mentioned annuity plan since the date ofreply of plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid bythe enterprise and employees together; the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of theenterprise per year, the combined contribution of the enterprise and the individual employee shall not exceed 12% of the totalsalary of the employees of the enterprise. In accordance with the State’s annuity policy, the Company will adjust the economicbenefits in due time, in principle of responding to the economic strength of the enterprise, the amount paid by the enterprise atcurrent period control in the 8 percent of the total salary of last year, the maximum annual allocation to employees shall not exceedfive times the average allocation to employees and the excess shall not be counted towards the allocation. The individualcontribution is limited to 1% of one’s total salary for the previous year. Specific paying ratio later shall be adjustedcorrespondingly in line with the operation condition of the Company.In December 2012, the Company received the Reply on annuity plans reporting under the name of WFHT from labor securityadministration department, later, the Company entered into the Entrusted Management Contract of the Annuity Plan of WFHTwith PICC.
5. Termination of operation
Not applicable
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement and internal reportingsystem. Operating segment of the Company refers to the followed components that have been satisfied at the same time:
① The component is able to generate revenues and expenses in routine activities;
② Management of the Company is able to assess the operation results regularly, and determine resources allocation andperformance evaluation for the component;
③ Being analyzed, financial status, operation results and cash flow of the components are able to require by the CompanyIf two or more operating segments have similar economic characteristics and meet certain conditions, they can be merged into oneoperating segment.The Company considers the principle of importance and determines the reporting segments based on the operating segments. Thereporting segment of the Company is a business unit that provides different products or services or operates in different regions.Due to the need for different technologies and market strategies in various businesses or regions, the Company independentlymanages the production and operation activities of each reporting segment, evaluates their operating results individually, anddecides to allocate resources to them and evaluate their performance.
(2) Financial information for reportable segment
In RMB
| Item | Automotive fuel injection system and fuel cell component segment | Automotive post processing system segment | Air management system segment | Other automotive components segment | Offsetting between segments | Total |
| Operating income | 3,046,981,942.70 | 1,870,569,145.39 | 524,910,114.67 | 988,240,063.85 | 736,467,713.89 | 5,694,233,552.72 |
| Operation cost | 2,443,257,848.96 | 1,594,153,912.73 | 407,560,919.56 | 899,384,298.35 | 723,804,226.06 | 4,620,552,753.54 |
(3) If the Company has no reportable segments or is unable to disclose the total asset and liability of eachreportable segment, it should state the reasonsThe Company mainly produces automotive internal combustion engine fuel systems and fuel cell components, automotivecomponents, silencers, purifiers, vacuum and hydraulic pumps, and other related products. The Company determines the reportingsegments based on product or service content, but due to the mixed operation of related businesses, the total asset, total liability,and period expenses have not been allocated.
(4) Other explanations
Nil
7. Other Significant Transactions and Matters Affecting Investors' Decisions
(1) The security organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its “platformtrade” business. (For details, please refer to the Company's announcement No. 2023-007 disclosed on www.cninfo.com.cn andother information disclosure websites on April 13, 2023). At present, the case is in the stage of public prosecution from WuxiPeople's Procuratorate to Wuxi Intermediate People's Court, and the outcome of the case is uncertain in the future.
(2) Based on the "platform trade" business’s background, transaction chain, sales and purchase contract signing, transactionprocess, physical flow and so on, the Company carefully analyzed and made comprehensive judgment, finds that the probability ofthis business not belonging to normal trade business is extremely high. In terms of accounting treatment, the Company follows theprinciple of substance over form and does not treat it as normal trade business, but according to the receipt and payment of funds,prudently counts as claims and liability, respectively, purchases actually paid to "suppliers" and sales collected from "customers",Other receivables are reported on a net basis in the financial statements as a "platform trading" portfolio. As of June 30, 2024, thebalance of the “platform trade” business portfolio was RMB 2,542.2634 million yuan, and an expected credit loss of RMB
1,644.0683 million yuan has been provisioned. Based on the comprehensive judgment of information from authorized departments,the Company has determined that there has been no significant change in the recoverable amount of debt in the “platform trade”business portfolio, and there is no need for further provision or significant reversal of expected credit loss. The recoverable amountof debt in the “platform trade” business combination is highly dependent on a series of judicial procedures such as investigation,prosecution, trial, judgment, and execution of the case, and the results still have uncertainty.
8. Other
NilXIX. Principal notes of financial statements of parent Company
1. Account receivable
(1) By account aging
In RMB
| Aging | Ending book balance | Beginning book balance |
| Within one year(inclusive) | 1,425,283,512.21 | 1,376,943,595.48 |
| Including: within six months | 1,402,610,663.14 | 1,365,664,197.96 |
| Six months to one year | 22,672,849.07 | 11,279,397.52 |
| 1-2 years | 9,541,302.13 | 9,348,871.78 |
| 2-3 years | 3,708,932.83 | 732,334.63 |
| Over three years | 2,434,994.34 | 6,457,957.26 |
| 3 - 4 years | 1,343,660.60 | 1,522,747.95 |
| 4 - 5 years | 16,633.61 | 101,188.83 |
| Over 5 years | 1,074,700.13 | 4,834,020.48 |
| Total | 1,440,968,741.51 | 1,393,482,759.15 |
(2) Accrued of bad debt provision
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt reserve | Book value | Book balance | Bad debt reserve | Book value | |||||
| Amount | Ratio | Amount | Accrued ratio | Amount | Ratio | Amount | Accrued ratio | |||
| Account receivable with bad debt provision accrued on a single basis | 503,945.24 | 0.03% | 503,945.24 | 100.00% | 4,774,540.26 | 0.34% | 4,774,540.26 | 100.00% | ||
| Including: | ||||||||||
| Account receivable with bad debt provision accrued on portfolio | 1,440,464,796.27 | 99.97% | 6,822,133.23 | 0.47% | 1,433,642,663.04 | 1,388,708,218.89 | 99.66% | 4,648,838.01 | 0.33% | 1,384,059,380.88 |
| Including: | ||||||||||
| Receivables from customers | 1,283,519,778.83 | 89.07% | 6,822,133.23 | 0.53% | 1,276,697,645.60 | 1,219,857,129.33 | 87.54% | 4,648,838.01 | 0.38% | 1,215,208,291.32 |
| Receivables from internal related parties | 156,945,017.44 | 10.90% | 156,945,017.44 | 168,851,089.56 | 12.12% | 168,851,089.56 | ||||
| Total | 1,440,968,741.51 | 100.00% | 7,326,078.47 | 0.51% | 1,433,642,663.04 | 1,393,482,759.15 | 100.00% | 9,423,378.27 | 0.68% | 1,384,059,380.88 |
Bad debt provision accrued on single basis: 503,945.24
In RMB
| Name | Beginning balance | Ending balance | ||||
| Book balance | Bad debt reserve | Book balance | Bad debt reserve | Accrued ratio | Accrued causes | |
| BD bills | 4,270,595.02 | 4,270,595.02 | ||||
| Tianjin Leiwo Engine Co., Ltd. | 503,945.24 | 503,945.24 | 503,945.24 | 503,945.24 | 100.00% | Have difficulty in collection |
| Total | 4,774,540.26 | 4,774,540.26 | 503,945.24 | 503,945.24 | ||
Bad debt provision accrued on portfolio: 6,822,133.23
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt reserve | Accrual ratio | |
| Within 6 months | 1,251,302,247.47 | ||
| 6 months to one year | 19,079,989.07 | 1,907,998.93 | 10.00% |
| 1-2 years | 7,497,560.36 | 1,499,512.07 | 20.00% |
| 2-3 years | 3,708,932.83 | 1,483,573.13 | 40.00% |
| Over 3 years | 1,931,049.10 | 1,931,049.10 | 100.00% |
| Total | 1,283,519,778.83 | 6,822,133.23 | |
Explanation on determining the basis of this portfolio:
In the portfolio, accounts receivable from internal related parties:
| Name of related party | Amount | Ratio of bad debt provision (%) |
| WFTR | 88,143,963.69 | -- |
| WFSC | 41,841,909.52 | -- |
| VHWX | 17,418,428.15 | |
| WFLD | 9,117,998.99 | -- |
| WFQL | 422,717.09 | |
| Total | 156,945,017.44 | -- |
If the provision for bad debts of accounts receivable is made according to the general model of expected credit loss:
□Applicable ?Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
| Category | Opening balance | Amount changed in the reporting period | Ending balance | |||
| Accrued | Collected or reversal | Written-off | Other | |||
| Bad debt provision | 9,423,378.27 | 2,173,295.22 | 4,270,595.02 | 7,326,078.47 | ||
| Total | 9,423,378.27 | 2,173,295.22 | 4,270,595.02 | 0.00 | 0.00 | 7,326,078.47 |
Important bad debt provision collected or reversal: Nil
(4) Account receivable actual charged off in the reporting period
Nil
(5) Top 5 receivables and contract asset at ending balance by arrears party
In RMB
| Name | Ending balance of account receivable | Ending balance of contract asset | Ending balance of account receivable and contract asset | Ratio in total ending balance of account receivable and contract asset | Ending balance of bad debt reserve and impairment reserve of contract asset |
| RBCD | 732,064,231.85 | 732,064,231.85 | 50.80% | 1,170,780.48 | |
| Bosch | 219,380,007.89 | 219,380,007.89 | 15.22% | 1,609,067.82 | |
| Client 3 | 142,715,272.25 | 142,715,272.25 | 9.90% | 399,249.28 | |
| WFTR | 88,143,963.69 | 88,143,963.69 | 6.12% | ||
| WFSC | 41,841,909.52 | 41,841,909.52 | 2.90% | ||
| Total | 1,224,145,385.20 | 1,224,145,385.20 | 84.94% | 3,179,097.58 |
2. Other accounts receivable
In RMB
| Item | Ending balance | Opening balance |
| Interest receivable | 3,632,064.24 | 842,323.12 |
| Dividends receivable | 775,914,958.91 | |
| Other account receivables | 1,441,774,047.65 | 1,369,807,069.16 |
| Total | 2,221,321,070.80 | 1,370,649,392.28 |
(1) Interest receivable
1) Category of interest receivable
In RMB
| Item | Ending balance | Opening balance |
| Interest receivable of subsidiary | 3,632,064.24 | 842,323.12 |
| Total | 3,632,064.24 | 842,323.12 |
2) Significant overdue interest
Other explanation: Nil
3) Accrued of bad debt provision
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Interest receivable actually charged off during the reporting period
Nil
(2) Dividend receivable
1) Category of dividend receivable
In RMB
| Item (or investee) | Ending balance | Opening balance |
| Zhonglian Electronics | 266,000,000.00 | |
| RBCD | 504,543,000.42 | |
| WFPM | 5,357,758.49 | |
| Guolian Securities | 14,200.00 | |
| Total | 775,914,958.91 |
2) Important dividend receivable with account age over one year
Nil
3) Accrued of bad debt provision
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Nil
5) Dividend receivable actually charged off during the reporting period
Nil
(3) Other account receivable
1) Other account receivables classification by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Staff loans and petty cash | 643,234.06 | 520,080.00 |
| Balance of related party in the consolidate scope | 3,078,109,351.33 | 3,006,132,546.93 |
| Margin | 4,136,816.99 | 3,920,799.33 |
| Social security and provident fund paid | 6,229,340.15 | 6,119,110.70 |
| Other | 371,066.21 | |
| Total | 3,089,118,742.53 | 3,017,063,603.17 |
2) By account age
In RMB
| Account age | Ending book balance | Beginning book balance |
| Within one year (One year included) | 296,529,664.99 | 365,322,657.63 |
| Including: within 6 months | 225,835,242.49 | 134,688,758.70 |
| 6 months to one year | 70,694,422.50 | 230,633,898.93 |
| 1-2 years | 933,729,008.92 | 2,648,713,049.33 |
| 2-3 years | 1,856,150,172.41 | 218,000.00 |
| Over 3 years | 2,709,896.21 | 2,809,896.21 |
| 3-4 years | 1,932,820.00 | 2,032,820.00 |
| 4-5 years | 761,330.00 | 769,876.21 |
| Over five years | 15,746.21 | 7,200.00 |
| Total | 3,089,118,742.53 | 3,017,063,603.17 |
3) Accrued of bad debt provision
Provision for bad debts based on the general model of expected credit loss:
In RMB
| Bad debt reserve | Phase I | Phase II | Phase III | Total |
| Expected credit loss over next 12 months | Expected credit loss for the entire duration (without credit impairment occurred) | Expected credit loss for the entire duration (with credit impairment occurred) | ||
| Balance of Jan. 1, 2024 | 3,188,206.08 | 1,644,068,327.93 | 1,647,256,534.01 | |
| Balance of Jan. 1, 2024 in the reporting period | ||||
| Current reversal | 88,160.87 | 88,160.87 | ||
| Balance on June 30, 2024 | 3,276,366.95 | 1,644,068,327.93 | 1,647,344,694.88 |
Change of book balance of loss provision with amount has major changes in the reporting period
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the reporting period:
In RMB
| Category | Opening balance | Amount changed in the reporting period | Ending balance | |||
| Accrued | Collected or reversal | Written-off | Other | |||
| Bad debt provision | 1,647,256,534.01 | 88,160.87 | 1,647,344,694.88 | |||
| Total | 1,647,256,534.01 | 88,160.87 | 1,647,344,694.88 | |||
Including the important bad debt provision reversal or collected in the reporting period: Nil
5) Other receivables actually charged off during the reporting period
Nil
6) Top 5 other receivables at ending balance by arrears party
In RMB
| Name of enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other receivables | Ending balance of bad debt reserve |
| WFTR | Balance of related party in the consolidate scope | 2,788,260,000.00 | 1-3 years | 90.26% | 1,644,068,327.93 |
| IRD | Balance of related party in the consolidate scope | 133,822,206.40 | Within 1 year | 4.33% | |
| WFCA | Balance of related party in the consolidate scope | 122,468,898.93 | Within six months | 3.96% | |
| BORIT | Balance of related party in the consolidate scope | 33,558,246.00 | Within one year | 1.09% | |
| Zhenkunxing Industrial Supermarket (Shanghai) Co., Ltd. | Margin | 1,000,000.00 | Within 3 year | 0.03% | 1,000,000.00 |
| Total | 3,079,109,351.33 | 99.67% | 1,645,068,327.93 |
7) Those booked into other account receivables due to centralized fund managementOther explanation: Nil
3. Long-term equity investments
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment loss | Book value | Book balance | Provision for impairment loss | Book value | |
| Investment in subsidiary | 3,121,879,242.19 | 3,121,879,242.19 | 3,116,879,242.19 | 3,116,879,242.19 | ||
| Investment in associates and joint venture | 4,828,564,846.05 | 4,828,564,846.05 | 4,891,133,182.10 | 4,891,133,182.10 | ||
| Total | 7,950,444,088.24 | 7,950,444,088.24 | 8,008,012,424.29 | 8,008,012,424.29 | ||
(1) Investment in subsidiary
In RMB
| Investee | Opening balance (book value) | Opening balance of provision for impairment loss | Changes in current period | Ending balance (book value) | Ending balance of provision for impairment loss | |||
| Additional Investment | Negative Investment | Provision for impairment loss | Other | |||||
| WFJN | 185,704,551.82 | 185,704,551.82 | ||||||
| WFLD | 467,856,451.80 | 467,856,451.80 | ||||||
| WFMA | 170,986,195.35 | 170,986,195.35 | ||||||
| WFCA | 222,664,737.01 | 222,664,737.01 | ||||||
| WFTR | 33,726,511.51 | 33,726,511.51 | ||||||
| WFSC | 51,116,685.47 | 51,116,685.47 | ||||||
| WFTT | 238,063,380.00 | 238,063,380.00 | ||||||
| WFAM | 82,454,467.99 | 82,454,467.99 | ||||||
| WFDT | 54,012,820.23 | 54,012,820.23 | ||||||
| SPV | 1,240,910,511.02 | 1,240,910,511.02 | ||||||
| WFLD(Chongqing) | 191,160.00 | 191,160.00 | ||||||
| WFAS | 631,890.00 | 631,890.00 | ||||||
| WFQL | 225,000,000.00 | 225,000,000.00 | ||||||
| VHWX | 143,559,879.99 | 143,559,879.99 | ||||||
| WFSS | 5,000,000.00 | 5,000,000.00 | ||||||
| Total | 3,116,879,242.19 | 5,000,000.00 | 3,121,879,242.19 | |||||
(2) Investment in associated enterprises and joint venture
In RMB
| Investee | Opening balance (book value) | Opening balance of provision for impairment loss | Current changes (+/ -) | Ending balance (book value) | Ending balance of provision for impairment loss | |||||||
| Additional investment | Capital reduction | Investment gain/loss recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment Accrued | Other | |||||
| I. Joint venture | ||||||||||||
| II. Associated enterprise | ||||||||||||
| RBCD | 2,892,038,981.78 | 367,168,114.71 | 504,543,000.42 | 2,754,664,096.07 | ||||||||
| Zhonglian Electronics | 1,685,502,046.73 | 250,991,619.50 | 266,000,000.00 | 1,670,493,666.23 | ||||||||
| WFPM | 41,414,341.58 | 1,810,858.00 | 783,350.57 | 5,357,758.49 | 38,650,791.66 | |||||||
| Chelian Tianxia | 182,680,857.61 | -2,504,187.11 | -1,221,900.39 | 178,954,770.11 | ||||||||
| Lezhuo Bowei | 89,496,954.40 | 110,000,000.00 | -13,695,432.42 | 185,801,521.98 | ||||||||
| Subtotal | 4,891,133,182.10 | 0.00 | 110,000,000.00 | 0.00 | 603,770,972.68 | -438,549.82 | 775,900,758.91 | 4,828,564,846.05 | ||||
| Total | 4,891,133,182.10 | 110,000,000.00 | 603,770,972.68 | -438,549.82 | 775,900,758.91 | 4,828,564,846.05 | ||||||
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used inprevious years' impairment testingNilReasons for significant discrepancies between the information used in the Company's previous annual impairment tests and theactual situation of the current yearNil
(3) Other explanations
Nil
4. Operating income and cost
In RMB
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,571,269,780.01 | 1,268,571,319.80 | 1,939,140,764.98 | 1,537,898,648.30 |
| Other business | 76,619,546.23 | 53,197,251.79 | 60,842,681.73 | 44,901,531.85 |
| Total | 1,647,889,326.24 | 1,321,768,571.59 | 1,999,983,446.71 | 1,582,800,180.15 |
5. Investment income
In RMB
| Item | Current Period | Last Period |
| Investment income from holding transaction financial asset | 34,771,161.26 | 66,697,793.52 |
| Investment income in joint ventures and associated enterprises | 603,770,972.68 | 644,975,916.19 |
| Revenue from debt restructuring | -81,000.00 | |
| Total | 638,461,133.94 | 711,673,709.71 |
6. Others
NilXX. Supplementary Information
1. Current non-recurring gain/loss
?Applicable □Not applicable
In RMB
| Item | Amount | Note |
| Gain/loss from the disposal of non-current asset | 5,473,643.37 | |
| Governmental grants reckoned into current gain/loss (except for those with normal operation business concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or quantitative basis according to certain standards) | 25,710,446.36 | |
| Except for the effective hedging operations related to normal business operation of the Company, the gain/loss of fair value changes from holding the trading financial asset and trading financial liability, and the investment earnings obtained from disposing the trading financial asset, trading financial liability and financial asset available for sale | -105,941,910.61 | |
| Gain/loss of asset delegation on others’ investment or management | 37,850,294.00 | |
| Gain/loss of debt restructuring | -284,132.56 | |
| Other non-operating income and expenditure except for the aforementioned items | 5,057,475.05 | |
| Receivables and contract asset that have undergone separate impairment testing shall have their impairment provisions reversed | 5,343,622.79 | |
| Account charged off in previous years and recovered in current year | 10,418.17 | |
| Less: Impact on income tax | -6,351,104.63 | |
| Impact on minority shareholders’ equity (after tax) | 306,523.64 | |
| Total | -20,735,562.44 | -- |
Specific information on other items of profits/loss that qualified the definition of non-recurring profit(gain)/loss
□Applicable ?Not applicable
The Company does not have other items of profits/loss that qualified the definition of non-recurring profit(gain)/lossInformation on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as therecurring profit(gain)/loss
□Applicable ?Not applicable
2. ROE and earnings per share
| Profits during the reporting period | Weighted average ROE | Earnings per share | |
| Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 4.84% | 0.98 | 0.98 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gain and loss | 4.95% | 1.00 | 1.00 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net asset disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
(2) Difference of the net profit and net asset disclosed in financial report, under both foreign 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
Nil
4. Other
Nil
BOD of WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
Chairman:
Yin Zhenyuan
August 22, 2024