WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
ANNUAL REPORT 2023
April 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.Wang Xiaodong, Principal of the Company, and Rong Bin, person in charger of accounting works,and Wu Junfei, person in charge of accounting organ (accounting principal) hereby confirm that theFinancial Report of 2023 Annual Report is authentic, accurate and complete.All directors have attended the BoD Meeting for the Report deliberation.Non standard audit opinion reminder?Applicable □Not applicableGongzheng Tianye Certified Public Accountants (SGP) issued the audit report for the Companywith an unqualified opinion with highlighted paragraphs, the Board of Directors and the Board ofSupervisors of the Company have explained the relevant matters in detail, please read carefully.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.Main risks that the Company may face in future operation are described in the “Prospect of futuredevelopment of the Company” under the “Discussion and Analysis of the Management” in theReport and investors are advised to check them out.The profit distribution plan that was deliberated and approved by the Board Meeting is: Based ontotal share capital of 977,162,793, distributed 10.00 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, the total amount of shares entitled to profitdistribution on the equity registration date at the time of implementation of the distribution plan
shall be adjusted based on the principle of unchanged distribution proportion.
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 ...... 7
Section III Discussion and Analysis of the Management ...... 11
Section IV. Corporate Governance ....................................................................................................................... 37
Section V. Environmental and Social Responsibility .......................................................................................... 56
Section VI. Important Matters ............................................................................................................................. 63
Section VII. Changes in Shares and Particulars about Shareholders ............................................................... 78
Section VIII. Preferred Stock ............................................................................................................................... 86
Section IX. Corporate Bonds ................................................................................................................................ 87
Section X. Financial Report .................................................................................................................................. 88
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 audit report with the seal of accounting firm and signature and seal of the CPA;III. Original documents of the Company and manuscripts of public notices that were disclosed in the websitedesignated by CSRC in the reporting period;IV. Text of the Annual Report 2023 containing the signature of the legal representative of the Company;V. Place for preparation: BoD office 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. |
Robert Bosch, Robert Bosch Company | 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 WFJN CO., LTD. |
WFTT | Refers to | NINGBO WFTT 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 TRADE CO.,LTD. |
WFSC | Refers to | WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.,LTD. |
WFAM | Refers to | WUXI WFAM PRECISION MACHINERY CO.,LTD. |
WFDT | Refers to | WUXI WEIFU E-DRIVE TECHNOLOGIES CO., LTD. |
WFAS | Refers to | WUXI WEIFU AUTOSMART SEATING SYSTEM 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 |
Lezhuo Bowei | Refers to | Lezhuo Bowei Hydraulic Technology (Shanghai) Co., Ltd |
WFEC | Refers to | Wuxi WFECal Catalysts. Co., Ltd. |
WFPM | Refers to | Wuxi Weifu Precision Machinery Manufacturing Co., Ltd |
Zhonglian Electronics | Refers to | Zhonglian Automobile Electronics Co., Ltd. |
Auto Link | Refers to | Wuxi Chelian Tianxia Information Technology Co., Ltd |
Changchun Xuyang | Refers to | Changchun Xuyang Weifu Automotive Parts 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 |
Gongzheng Tianye | Refers to | Gongzheng Tianye Certified Public Accountants (Special General Partnership) |
The reporting period | Refers to | From Jan. 1, 2022 to Dec. 31, 2022 |
Section II Company Profile and Main Financial IndexesI. 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 | Wang Xiaodong | ||
Registrations add. | No.5 Huashan Road, Xinwu District, Wuxi (production & operation place:1. No.8 Huashan Road, Xinwu District, Wuxi; 2. No.17 Changjiang Road, Xinwu District, Wuxi; 3. No.139 Xixie Road, Xinwu District, Wuxi; 4. No.13 Xinhua Road, Xinwu District, Wuxi) | ||
Code for registrations add | 214028 | ||
Historical changes of registered address | On May 25, 1994, registered address of the Company changed to “Lot 46, National High-Tech Industrial Development Zone, Wuxi” instead of “No.107, Renmin West Road, Wuxi”; on December 9, 2008, registered address changed to “No.5 Huashan Road, New District, Wuxi” instead of“Lot 46, National High-Tech Industrial Development Zone, Wuxi”; on June 12, 2019, registered address changed to “No.5 Huashan Road, Xiwu District, Wuxi (production & operation place:1. No.8 Huashan Road, Xinwu District, Wuxi; 2. No.17 Changjiang Road, Xinwu District, Wuxi; 3. No.139 Xixie Road, Xinwu District, Wuxi; 4. No.13 Xinhua Road, Xinwu District, Wuxi)” | ||
Offices add. | No.5 Huashan Road, Xinwu District, Wuxi | ||
Codes for office add. | 214028 | ||
Company’s Internet Web Site | http://www.weifu.com.cn | ||
Web@weifu.com.cn |
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. Information disclosure and preparation place
Website of the Stock Exchange where the annual report of the Company is disclosed | Shenzhen Stock Exchange(http://www.szse.cn/) |
Media and Website where the annual report of the Company is disclosed | China Securities Journal; Securities Times; and Juchao Website(http://www.cninfo.com.cn) |
Preparation place for annual report | Office of the Board of Directors |
IV. Registration changes of the Company
Organization code | 91320200250456967N |
Changes of main business since listing (if applicable) | No change |
Previous changes of controlling shareholders (if applicable) | Controlling shareholder of the Company was Weifu Group before 2009. and controlling shareholder changed to Wuxi Industry Group since 31 May 2009 due to the merge of Weifu Group by Wuxi Industry Group. Weifu Group and Wuxi Industry Group are wholly state-owned companies of Wuxi State-owned Assets Supervision & Administration Commission of State Council, therefore, the actual controller of the Company turns to Wuxi State-owned Assets Supervision & Administration Commission of State Council. |
V. Other relevant information
CPA engaged by the Company
Name of CPA | Gongzheng Tianye Certified Public Accountants (Special General Partnership) |
Offices add. for CPA | 10/F, No.5 Building, Jiakaicheng Fortune Center, Jingrong 3rd Street, Taihu Xincheng, Binghu District, Wuxi, Jiangsu Province |
Signing Accountants | Gu Zhi, Zhang Qianqian |
Sponsor engaged by the Company for performing continuous supervision duties in the reporting period
□ Applicable ? Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the reporting period
□ Applicable ? Not applicable
VI. Main accounting data and financial indexesWhether the Company is required to retrospectively adjust or restate prior year’s accounting data
□ Yes ? No
2023 | 2022 | Year-on-year increase(+)/decrease(-) | 2021 | |
Operation income (RMB) | 11,093,141,950.98 | 12,729,634,917.03 | -12.86% | 13,682,426,710.95 |
Net profit attributable to shareholders of the listed company(RMB) | 1,837,291,259.68 | 118,819,836.30 | 1446.28% | 2,575,371,419.80 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 1,597,321,239.86 | 119,966,549.62 | 1231.47% | 2,544,559,926.75 |
Net cash flows arising from operating activities (RMB) | 1,626,249,911.90 | -2,575,742,649.43 | 163.14% | 627,712,593.41 |
Basic earnings per share (RMB/Share) | 1.88 | 0.09 | 1,988.89% | 2.57 |
Diluted earnings per share (RMB/Share) | 1.88 | 0.09 | 1,988.89% | 2.57 |
Weighted average ROE | 9.92% | 0.64% | 9.28% | 13.67% |
Year-end of 2023 | Year-end of 2022 | Year-on-year increase(+)/decrease(-) | Year-end of 2021 | |
Total assets (RMB) | 28,081,087,791.81 | 28,528,913,065.01 | -1.57% | 27,970,858,427.84 |
Net assets attributable to shareholder of listed company (RMB) | 19,399,892,671.78 | 17,696,679,170.72 | 9.62% | 19,398,607,689.65 |
The lower of the Company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years isnegative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a goingconcern
□Yes ?No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes ?No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the reporting period.VIII. Quarterly main financial index
In RMB
Q1 | Q2 | Q3 | Q4 | |
Operation income | 3,144,363,323.69 | 2,985,285,723.71 | 2,212,553,381.53 | 2,750,939,522.05 |
Net profit attributable to shareholders of the listed company | 414,774,676.43 | 533,986,183.12 | 373,315,787.47 | 515,214,612.66 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 355,542,161.23 | 475,336,090.14 | 365,662,980.94 | 400,780,007.55 |
Net cash flows arising from operating activities | 545,452,710.09 | 544,508,527.33 | 41,786,089.96 | 494,502,584.52 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the Company’s quarterly report and semi-annual report
□Yes ? No
IX. Items and amounts of extraordinary(non-recurring) profit(gains)/loss
?Applicable □ Not applicable
In RMB
Item | 2023 | 2022 | 2021 | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 126,538,939.67 | -148,566.90 | -12,350,725.86 | |
Governmental grants reckoned into current gains/losses (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 gains/losses of the company) | 31,251,345.14 | 111,917,334.77 | 71,274,511.67 | |
Except for effective hedging business related to the normal operation of the company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | 23,096,322.48 | -145,070,562.29 | -29,889,140.23 | |
Gains/losses of assets delegation on others’ investment or management | 94,647,509.98 | 1,236,142.58 | 2,425.40 | |
Reversal of provision for depreciation of account receivable which was singly taken depreciation test | 5,862,949.67 | 1,265,113.45 | 8,976,264.09 | |
Gains/losses from debt reorganization | -323,525.00 | |||
Other non-operating income and expenditure except for the aforementioned items | 22,253,986.90 | 39,799,099.77 | 130,837.12 | |
Accounts receivable collected in the current period while written off in previous years | 63,149.93 | |||
Less: Impact on income tax | 40,956,611.82 | 1,952,583.99 | 4,345,456.60 | |
Impact on minority shareholders’ equity (post-tax) | 22,464,047.13 | 8,192,690.71 | 2,987,222.54 | |
Total | 239,970,019.82 | -1,146,713.32 | 30,811,493.05 | -- |
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable ?Not applicable
The Company does not have other items of profits/losses 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 Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurringprofit(gain)/loss
□Applicable ?Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurringprofit(gain)/loss
Section III Discussion and Analysis of the Management
I. Industrial information of the Company within the reporting periodThe Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines forSelf-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry InformationThe company is in the industry of auto parts manufacturing. 2023 was the first year of economic recovery and development, althoughthe automobile industry was disturbed by multiple factors such as the purchase tax of fuel vehicles at the beginning of the year andthe withdrawal of new energy vehicles from the state subsidy, and price war, under the support of national and local policies topromote consumption and stabilize growth, as well as the high growth of new energy vehicles and exports, the annual sales presenteda "ascending and gradually improving trend", and achieved rapid growth. In 2023, the automobile production and sales in China were
30.161 million and 30.094 million, respectively, with a year-on-year increase of 11.6% and 12.0%, and the production and salesexceeded 30 million for the first time, hitting a record high.
1. Commercial vehicle market situation
In 2023, under the background of economic recovery, consumption recovery, increasing logistics demand, the oil and gas pricedifference supported the outbreak of gas heavy trucks, coupled with the elimination of national standard IV vehicles and the Belt andRoad policy and the Russia-Ukraine conflict to boost export growth, showing a recovery growth trend throughout the year. In 2023,the production and sales of commercial vehicles were 4.037 million and 4.031 million, respectively, with a year-on-year increase of
26.8% and 22.1%, the annual export was 770,000, with a year-on-year increase of 32.2%.
In terms of production and sales of different models, in 2023, the production and sales of trucks were 3.539 million, with a year-on-year increase of 27.4% and 22.4%. The production and sales of passenger cars were 498,000 and 492,000, respectively, with a year-on-year increase of 22.5% and 20.6%.In terms of segment models, among the varieties of truck, all models achieved double-digit year-on-year growth, of which heavytrucks increased most significantly. The sales of heavy trucks was 911,000, with a year-on-year increase of 35.6%; the sales ofmedium trucks was 107,000, with a year-on-year increase of 12.0%; the sales of light trucks was 1.895 million, with a year-on-yearincrease of 17.1% year on year; the sales of mini trucks was 626,000, with a year-on-year increase of 23.6%. Among the varieties ofpassenger car, the sales of light passenger cars presented rapid growth, medium and light passenger cars increased slightly. Amongthem, the sales of large passenger cars was 54,000, with a year-on-year increase of 4.0%; the sales of medium passenger cars was38,000, with a year-on-year increase of 3.8%; the sales of light passenger cars was 400,000, with a year-on-year increase of 25.1%.In 2023, the commercial vehicle market was still dominated by traditional fuels, with diesel vehicles and gasoline vehiclesaccounting for 52.6% and 31.9% of the annual commercial vehicle market, respectively; new energy vehicles (pure electric, plug-inhybrid, fuel cell) accounted for about 10.7%, of which pure electric vehicles accounted for the highest, which was 10.2%; otheralternative fuels accounted for only 0.19%; gas vehicles accounted for 4.7%, with a year-on-year increase of 3.3% under the supportof the increase in oil and gas price difference and the prominent advantage of operating cost.
2. Passenger car market situation
In 2023, the passenger car market was affected by factors such as policy switching and industry price competition at the beginning ofthe year, and market demand fell significantly. However, under the frequent emergence of national and local consumption boostpolicies, driven by new energy and exports, the sales was gradually increased, maintaining the double growth of production and sales
throughout the year, which played an important role in stabilizing the basic condition of automobile consumption. The productionand sales of passenger cars were 26.124 million and 26.063 million, with a year-on-year increase of 9.6% and 10.6% respectively.The exports reached 4.14 million, with a year-on-year increase of 63.7%. Supported by continuous improvement of productcompetitiveness, new energy penetration and rapid growth of exports, the annual market share of independent brands reached 56%.
3. New energy vehicle market situation
The price war was spreading under the trend of diversified supply of automobile enterprises and continuous reduction of raw materialprices, coupled with the effect of policies such as the extension of purchase tax reduction and new energy vehicles going to thecountryside, the new energy vehicle market continued to expand. In 2023, the production and sales were 9.587 million and 9.495million respectively, with a year-on-year increase of 35.8% and 37.9% respectively, and the market share reached 31.6%, with ayear-on-year increase of 5.9%. Among them, the sales of pure electric vehicles was 6.685 million, with a year-on-year increase of
24.6%; the sales of plug-in hybrid vehicles was 2.804 million, with a year-on-year increase of 84.7%; the sales of fuel cell vehicleswas 6 thousand, with a year-on-year increase of 72.0%.
4. Off-road vehicle market situation
In 2023, the macroeconomic repair was not as expected, the real estate industry continued to slump, the demand for infrastructurewas weak, but the overseas market performed well, and the construction machinery industry maintained overall growth; agriculturalmachinery improved on the back of a rebound in farming demand. In 2023, the sales of diesel internal combustion engines forconstruction machinery was 893,000, with a year-on-year increase of 8.6%; the sales of diesel internal combustion engines foragricultural machinery was 1.556 million, with a year-on-year increase of 22.4%.(Note: The above industry data sources are China Association of Automobile Manufacturers, CNWORLD, China InternalCombustion Engine Industry Association)
5. Matching between company operation and the industry
In 2023, the operating conditions of the company basically matched the development of the industry. Affected by the macroeconomicenvironment, intensifying competition in the automobile industry, declining prices of precious metals, outstanding performance ofnatural gas heavy trucks and export markets, the company achieved operating income of 11.093 billion yuan during the reportingperiod, with a year-on-year decrease of 12.86%. The net profit attributable to shareholders of listed companies was 1.837 billion yuan,with a year-on-year increase of 1446.28%.
II. Major Business of the Company within the reporting periodThe Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines forSelf-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information.
(I) Main business engaged by the Company
The main business of the company is the research and development, production and sales of core automotive parts, and currently hasfour business segments, including energy conservation and emission reduction, green hydrogen energy, intelligent electric, industrialand other. During the reporting period, the main products sold were diesel fuel injection system, exhaust aftertreatment system, airintake system, core parts of fuel cells, core parts of electric drive systems, core parts of thermal management systems, cabin coreparts, 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 product
variety, 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 other products,can meet the national VI standard, off-road stage IV emission regulations, with leading technical level, market scale and productioncapacity in China, widely used in traditional power & plug-in hybrid passenger vehicles, commercial vehicles, off-road machineryand other fields, and can provide strong support for product upgrading and renewal of OEMs.
3. Air intake system, including diesel supercharger, gasoline supercharger, natural gas supercharger and other products, can meet thenational VI, off-road stage IV emission regulations, with the scope of application covering commercial vehicles, traditional power &plug-in hybrid passenger vehicles, construction machinery, agricultural machinery, generator sets and other fields, and can supportthe 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, mainly supportdomestic 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) Operation model of the companyThe Company follows the business philosophy of “Making Fine Products, Creating Famous Brands and Achieving Common Growthin Values” and implements the business model of unified management by the parent company and decentralized production by thesubsidiaries. The parent company is responsible for formulating strategic development plans and business objectives, and providingunified management, guidance and assessment to the subsidiaries in terms of finance, major personnel management, core rawmaterials, quality control, technology development, etc. Subsidiaries arrange production based on the order management model of themarket, which not only enables the subsidiaries to maintain uniform product quality, but also facilitates timely understanding ofcustomer demands and saving logistics costs, so as to improve the economic efficiency of the Company by maintaining the timelinessof product production and supply.Production and operation of vehicle manufacturing during the reporting period
□Applicable ?Not Applicable
Production and operation of auto parts during the reporting period? Applicable □ Not applicable
Unit: Ten thousand pieces
Capacity | Sales volume | |||||||||
Current period | Same period of last year | Year-on-year increase/decrease(+/-) | Current period | Same period of last year | Year-on-year increase/decrease(+/-) | |||||
By components | ||||||||||
Fuel management system- multi-cylinder pumps | 202.55 | 182.19 | 11.17% | 199.35 | 217.79 | -8.47% | ||||
Fuel management system- | 242.71 | 148.23 | 63.73% | 217.50 | 184.20 | 18.08% |
fuel injector
fuel injector | ||||||
After-treatment system - diesel purifier | 46.76 | 55.51 | -15.75% | 43.90 | 61.55 | -28.68% |
After-treatment system - gasoline purifier | 366.81 | 282.68 | 29.76% | 342.79 | 309.08 | 10.91% |
Air management system –turbocharger | 97.81 | 81.73 | 19.68% | 90.36 | 80.66 | 12.03% |
Brake system - vacuum pump | 737.68 | - | 734.32 | - | ||
By vehicle facilities | ||||||
By after-sale service market | ||||||
Fuel management system- multi-cylinder pumps | 0.28 | 0.32 | -10.52% | 0.29 | 0.41 | -30.96% |
Fuel management system- fuel injector | 0.29 | 0.61 | -53.28% | 0.08 | 0.60 | -86.49% |
Air management system –turbocharger | 1.12 | 1.07 | 4.31% | 1.16 | 1.14 | 1.30% |
Other classification | ||||||
By domestic area | ||||||
Fuel management system- multi-cylinder pumps | 202.83 | 182.51 | 11.13% | 199.63 | 218.20 | -8.51% |
Fuel management system- fuel injector | 243.00 | 148.80 | 63.30% | 217.58 | 184.80 | 17.74% |
After-treatment system – purifier | 413.57 | 338.19 | 22.29% | 386.69 | 370.63 | 4.33% |
Air management system –turbocharger | 98.93 | 82.80 | 19.48% | 91.52 | 81.80 | 11.88% |
Brake system - vacuum pump | 249.34 | - | 248.00 | - | ||
By oversea area | ||||||
Brake system - vacuum pump | 488.34 | - | 486.32 | - |
Explanation of reasons for a year-on-year change of 30% or more? Applicable □ Not applicableThe rapid growth in production of fuel injectors and gasoline purifiers is mainly due to the growth of market orders.Sales model of spare partsThe Company adheres to the customer-centric approach and applies flexible marketing strategies and standardized developmentprocedures to satisfy the demands of different types of customers, ensure the smooth implementation of customer development plans,and strive for more customers and a larger market share. The Company has established a mechanism for strategic customer visits,with senior management visiting customers or receiving visits from customers on a regular basis, holding high-level strategicmeetings, special cooperation exchanges and other activities. The Company implements special management for strategic customersand establishes a four-in-one collaborative organization consisting of the responsible leaders, key account managers, marketingdepartment and business divisions to do a good job of customer demand analysis and management, customer satisfaction survey andanalysis, etc. Meanwhile, the Company optimizes business processes by means of information technology to enhance the speed ofresponse to customer demands, and assists customer relationship management through modern technological tools such as callcenters, customer data warehouses, business intelligence, mobile devices and web conferencing. The Company promotescollaborative marketing of existing businesses and new businesses, strengthens communication and cooperation with existingbusiness customers in new businesses, and actively expands new customers and develops potential customers.The Company engages in auto finance business
□Applicable ?Not Applicable
The Company engages in business related to new energy automobile? Applicable □ Not applicableProduction and operation of new energy vehicles and parts
In RMB
Category
Category | Capacity | Output | Sales volume | Sales revenue |
Core components for hydrogen fuel cells | 2,530,000 pieces | 713,200 pieces | 733,300 pieces | 106,464,546.51 |
Core parts for E-drive | 3,820,000 pieces | 2,670,000 pieces | 2,627,000 pieces | 358,065,220.36 |
Exhaust (PEHV) cleaner | 886,000 pieces | 326,000 pieces | 270,400 pieces | 930,875,527.74 |
Intake(PHEV) supercharger | 150,000 pieces | 120,000 units | 107,000 units | 97,621,470.00 |
III. Analysis on Core Competitiveness
The Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines forSelf-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information.
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 OEMs andvehicle manufacturers. The existing core auto parts products such as automotive fuel injection system, exhaust gas after-treatmentsystem, air intake system and core parts of hydrogen fuel cell have strong market competitiveness and high market shares. TheCompany is a leading enterprise in the internal combustion engine industry of China and ranked 35th on the 2023 Top 100 ChineseAutomotive Parts 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 on fuelinjection system for vehicles, exhaust gas after-treatment system, air intake system, hydrogen fuel cell, intelligent network, thermalmanagement system and other businesses for technological innovation and product development. The Company has acquired anumber 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 and intelligent electric power, established theInstitute of New Energy and Netlink Technology, and formed product technology research and development capabilities in hydrogenfuel cell core components, research and development capabilities for renewable energy hydrogen production, core parts of E-drive,thermal management system components, intelligent perception modules, and other product technologies.
3. Management and manufacturing advantages. The Company features a perfect organizational structure, management system andprocess, as well as a financial sharing platform, which can realize the effective migration and stable operation of organization andpersonnel, business and accounting; The Company has built a human resource information system platform, so as to guarantee thetimely and accurate standardization of basic data of organization, personnel, salary and attendance; The Company has established aprocurement sharing system, which enables the interconnection of information between enterprises and suppliers that enables closed-loop management of the procurement process; The Company has implemented Weifu Production System (WPS) with lean conceptand established an overall process quality management system with relatively strong manufacturing, quality assurance, cost controland product delivery capabilities. With the focus on smart manufacturing, the Company has continued to build a smart factory withWeifu characteristics and promote the application of cloud computing and 5G network, which can strongly support the futurebusiness development of the Company.
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 responsible leaders,key account managers, marketing departments and business divisions, and regular visits among the management of the companies topromote communication and cooperation. The Company has a relatively complete after-sales service system, and has built an after-sales service network, intelligent service platform, and set up special maintenance technical service stations nationwide to regularlytrain end-users in the use of maintenance and fault analysis and judgment, so as to provide customers with fast, timely andprofessional all-round after-sales services.
5. Talent team advantages. The management team of the Company has extensive experience in the auto parts industry with excellentindustry reputation. The Company attaches importance to the growth of employees as well as the development of core talents. Withyears of accumulation, the Company has deposited a group of professional and high-quality management and technical talents andestablished a reasonable talent echelon, which provides a strong guarantee of human resources for the long-term and stabledevelopment of the Company. The human resource management system of the Company is relatively comprehensive, and thecontinuously optimized human resource management system has provided a fair platform for career development of employees torealize their values. The Company attaches importance to the service and care for employees, and aims to enhance the serviceexperience of employees through the construction of employee self-help platform to create a working environment with warmth anda 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 Company 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 Schmidt in Germany, and cooperatesclosely in the field of high-end precision manufacturing. By long-term cooperation with renowned enterprises in Europe and theUnited States, the Company has cultivated a group of middle and senior management and technical personnel with internationalcommunication abilities, international visions and familiarity with international standards, and has mastered R&D process design,quality control and production management capabilities with international advanced levels, which has promoted favorabledevelopment of the business of the Company as well as international business and market development.
7. Excellent corporate culture with the mission of “Better Life Powered by Quality and Intelligence” and the vision of “CentennialWeifu Expert in Core Auto Parts Industry”, the Company has practiced the core values of “Focus, Innovation, Commitment andIntegration” while adopting the enterprise spirit of “Being Practical, Being Courageous, Being Cooperative and Being Pioneering”.The Company has been building a culture system of “Quality and Intelligence”, with “Quality” and “Intelligence” as the twin enginesof the corporate culture, which reflect the adherence to the original intention and the pursuit of the future. The excellent corporateculture has provided strong support for the continued operational excellence of the Company and its growth into a trustworthy andrespected industrial expert, thereby playing an active role in the achievement of the strategic goals of the Company.IV. Main business
1. Overview
2023 is the 65th anniversary of Weifu. In the face of complex and severe macroeconomic situation and competitive pressure in theautomotive industry, the Company closely adhered to the “14th Five-Year Plan” development objective, implemented the annualwork policy of "aiming at strategic goals, making efforts for management improvement, and being devoted to the cultivation of newbusiness". All employees worked together, resisted the pressure, continuously improved the quality of operation, and ensured thesmooth operation of the company. During the reporting period, the Company achieved operating income of 11.093 billion yuan, witha year-on-year decrease of 12.86%; the net profit attributable to shareholders of listed companies was 1.837 billion yuan, with a year-on-year increase of 1446.28%; the total assets were 28.081 billion yuan, with a year-on-year decrease of 1.57%; the net assetsattributable to shareholders of listed companies were 19.399 billion yuan, with a year-on-year increase of 9.62%.Main work carried out by the company during the reporting period:
1. Consolidate market advantages of core business and strengthen market development for new businessThe product market share of core business maintained advantages: In terms of fuel system products, the annual sales of common railpumps exceeded 1.45 million, increasing steadily; the annual sales of VE distribution pumps was nearly 390,000; benefiting from thegrowth of the export market, the annual sales of mechanical pumps were nearly 170,000, maintaining the growth. In terms ofaftertreatment system products: Gasoline purifiers presented outstanding performance in the hybrid passenger car market, withannual sales of nearly 2.8 million, and year-on-year increase of nearly 30%; the annual sales of diesel purifiers exceeded 260,000,
with the market share and competitiveness steadily increased, and key customer share in some off-road markets exceeding 50%; theannual sales of natural gas purifiers exceeded 60,000, with a year-on-year increase exceeding 150%. In terms of air intake systemproducts, the annual sales of four-cylinder diesel superchargers reached a record high of nearly 580,000, continuing to maintain thefirst position in market share in the industry in China; mass production of gasoline superchargers was achieved in a number ofdomestic head passenger car customer projects, with the annual sales of more than 260,000, continuing to maintain growth; six-cylinder superchargers were selected for a number of diesel and alternative fuel projects of domestic key customers.Market development for new business has achieved positive results: the VH business at home and abroad that the company acquiredin 2022 has been promoted smoothly, and the vacuum pump and electronic oil pump products have made positive progress,especially the special electronic oil pump products have been selected for a number of designated projects of domestic and foreignhead passenger car and commercial vehicle customers and have achieved batch production. The business volume of electric drivecore parts maintained high growth, the annual sales of motor shaft products reached nearly 1.4 million, with a year-on-year increaseof nearly 150%. The construction of three major bases of hydrogen fuel cell business in the world has been steadily advanced, andthe business volume maintained steady growth. 4D imaging radar products reached strategic cooperation with KargoBot and Arbe,and the sample delivery and road testing were completed; the company has reached strategic cooperation with Shanxi AnshuIntelligent Technology to promote the commercial application in the field of smart mines; at the same time, the company carried outtest verification with a number of OEMs.
2. Promote the efficient development of main products and accelerate the development of new productsEfficient and clean internal combustion power products: Completed the B sample performance test of 2000bar products in GP projectand several customer engine tests; completed the engine performance test of the key components of the diesel-natural gas dual fuelinjection system; initiated the pre-research of high pressure direct injection technology of alternative fuel cylinder and theexperimental research of hydrogen internal combustion engine injection technology, and obtained the development projects of keycustomers; completed the development, mass production and supply of CB6-25 two-cylinder high pressure pump; completed VPsystem off-road stage IV product upgrade; completed the B sample development of hybrid high-efficiency gasoline superchargerplatform, and realized the batch production of variable nozzle turbochargers for gasoline engines of key customers; completed keycustomer project acquisition and batch production and supply of the second generation platform products of six-cylinder diesel andnatural gas engine supercharger; completed D sample development of heavy-duty, light-duty and off-road stage IV diesel purifiers,and realized batch production of several customer projects.Green hydrogen energy and intelligent electric products: In terms of core parts of hydrogen fuel cells, completed the domesticproduction capacity construction and trial production of 1.1 million membrane electrodes per year; completed the first phase ofproduction capacity construction and trial production of metal bipolar plate in China; completed the function test of bottle valve andpressure reducing valve of the high-pressure hydrogen subsystem; achieved stable supply of hydrogen ejector and isolation valve ofthe low-pressure hydrogen subsystem; started small-batch supply of exhaust valves and electric superchargers. In terms of renewableenergy hydrogen production, realized the equipment integration and demonstration operation of the first set of 100-kilowatt PEMelectrolytic water hydrogen production system. In terms of thermal management, realized batch supply of electronic oil pump forelectric drive; realized small batch supply of electronic thermostats for cell stack; completed C sample development of electronicwater pumps for medium power cell stack. In terms of situation awareness, completed the construction and acceptance of the radarproduction line in the cabin; completed the design and trial production of short range radar prototype; completed B sample designand customer sample delivery of barrier gate radar; completed B sample design verification and cost reduction protocol design of 4Dimaging forward radar.
3. Build a strategic planning operation system and promote the layout of new business investment cooperationStrategic planning: Completed the mid-term review of the 14th Five-Year strategic plan of the company; combined with radar, PEMelectrolytic water hydrogen production, thermal management, hydraulic and other business, dynamically studied and formulatedrelevant strategic planning and action plans; completed the planning of Huishan Intelligent Industrial Park and Hydrogen EnergyIndustrial Park, and promoted research on coating capacity and intelligent manufacturing. In terms of investment cooperation:
Focused on promoting the industrialization process of radar business, initiated independent operation, and actively pursued
cooperation with strategic partners; accelerated investment cooperation in the seat business, smoothly expanded the passenger carcustomer market, and promoted the large-scale development of the seat business; continuously promote the further cooperation withthe existing strategic partners in the posttreatment catalyst and new materials business, and extended to the development of newenergy and new materials through the new cooperation platform; actively pursued strategic cooperation in new business areas such asPEM electrolytic water hydrogen production and high pressure hydrogen storage, and deepened investment cooperation in wheel hubmotor business. At the same time, strengthened the post-investment management of participating enterprises such as Auto Link andWeifu Precision Machinery and further research on strategic actions.
4. Strengthen quality and safety management and steadily promote project constructionAchieved steady improvement of quality level of core business products, and zero kilometer fault of some products was less than10PPM; carried out full coverage and quality improvement on-site verification of all elements of the key processes in a normalizedand stratified manner; promoted the comprehensive promotion and systematic application of measurement managementstandardization; continuously promoted the information construction of manufacturing system, and awarded the first nationalintelligent manufacturing demonstration factory in Wuxi City. Integrated and launched the EHS information supervision platformand production safety intelligent visual operation center; initiated the construction of the energy management platform project, andsuccessfully passed the ISO50001 energy management system review. Advanced the R&D building and plot 103 project in anorderly manner, and completed the preparatory work for the construction of the Hydrogen Energy Industrial Park. Initiated theconstruction of the procurement platform project, and continuously improved the digital capacity of supply chain management;advanced the promotion implementation of intelligent manufacturing and standardization of system modules, completed the pilotpromotion of some standardized modules, and complete the pilot promotion of intelligent warehouse management system; promoteddata service and analysis projects, continuously improved the data management construction of each business segment, and minedthe value of data. Explored the localized application of innovative technologies, and fully built Weifu industry Internet platform.
5. Consolidate the quality of enterprise operation and improve the efficiency of operation and managementStrengthened the monitoring and analysis of operation, seriously carried out deviation correction and closed loop of operation, andpromoted the integration of business plans and budgets. Excavated technology to reduce costs, refined category managementstrategies, established electronic category procurement channels, improved procurement specialization, and integrated new businessplanning; further strengthened the analysis and disposal of slow-moving inventory, reviewed and gave early warning of productionscheduling, and focused on the control of long-cycle materials. Continuously promoted the construction of intelligent finance,optimized intelligent reports and management cockpit, launched profitability analysis system, and promoted product costoptimization and improvement; launched the procurement expenditure contract management system, and improved the efficiency ofcontract management process. Carried out special inspection of internal control, identified problems, followed up the implementationand closed loop of rectification; organized the re-learning and publicity of relevant systems and processes, enhanced the risk controlawareness of all staff, and continuously optimized the internal control system. Optimized the allocation of human resources, adjustedthe structure of talent team, and improved the efficiency of personnel; focused on promoting major strategic cooperation projects andstrategic emerging business personnel allocation, and expanded talent introduction channels; explored overseas talent exchange andtraining models, formulated security mechanisms, and promoted the construction of international talent echelons.
2.Revenue and cost
(1) Composition of operation revenue
In RMB
2023 | 2022 | Year-on-year increase(+)/decrease(-) | |||
Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
Total operation revenue | 11,093,141,950.98 | 100% | 12,729,634,917.03 | 100% | -12.86% |
By industry
By industry | |||||
Automotive components | 10,926,750,670.90 | 98.50% | 12,333,099,421.87 | 96.88% | -11.40% |
Other business | 166,391,280.08 | 1.50% | 396,535,495.16 | 3.12% | -58.04% |
By product | |||||
Automotive fuel management system | 5,077,092,133.74 | 45.76% | 5,556,437,665.29 | 43.65% | -8.63% |
Automotive after-treatment system | 3,409,054,236.79 | 30.73% | 5,757,095,151.92 | 45.22% | -40.79% |
Air management system | 662,890,661.90 | 5.98% | 567,829,177.40 | 4.46% | 16.74% |
Other automotive components | 1,777,713,638.47 | 16.03% | 451,737,427.26 | 3.55% | 293.53% |
Other business | 166,391,280.08 | 1.50% | 396,535,495.16 | 3.12% | -58.04% |
By region | |||||
Domestic | 9,497,551,219.78 | 85.62% | 11,917,440,065.87 | 93.62% | -20.31% |
Foreign | 1,595,590,731.20 | 14.38% | 812,194,851.16 | 6.38% | 96.45% |
By sales model | |||||
Direct sale | 11,093,141,950.98 | 100.00% | 12,729,634,917.03 | 100.00% | -12.86% |
(2) The industries, products, regions or sales model accounting for over 10% of the Company’s operationrevenue or operation profit
?Applicable □ Not applicable
In RMB
In case of changes in the statistical caliber of principal business data in the reporting period, the Company will refer to the principalbusiness data after adjustment in recent 1 year:
□Applicable ?Not Applicable
Operation revenue | 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 | 10,926,750,670.90 | 9,083,184,521.77 | 16.87% | -11.40% | -14.78% | 3.29% |
By product | ||||||
Automotive fuel management system | 5,077,092,133.74 | 3,908,250,189.19 | 23.02% | -9.24% | -12.57% | 2.72% |
Automotive after-treatment system | 3,409,054,236.79 | 2,982,136,889.95 | 12.52% | -40.79% | -43.47% | 4.15% |
Air management system | 662,890,661.90 | 514,254,765.44 | 22.42% | 16.74% | 9.84% | 4.87% |
Other automotive components | 1,777,713,638.47 | 1,678,542,677.19 | 5.58% | 301.01% | 252.64% | 13.23% |
By region | ||||||
Domestic sales | 9,331,159,939.70 | 7,615,983,251.26 | 18.38% | -19.01% | -24.32% | 5.73% |
Foreign sales | 1,595,590,731.20 | 1,467,201,270.51 | 8.05% | 96.45% | 146.86% | -18.77% |
By sales mode | ||||||
Direct sales | 10,926,750,670.90 | 9,083,184,521.77 | 16.87% | -11.40% | -14.78% | 3.29% |
(3) Whether the Company’s revenue from physical sales is greater than its revenue from labor services
? Yes □ No
Industries | Item | Unit | 2023 | 2022 | Year-on year increase(+)/decrease(-) |
Fuel management system- multi-cylinder pumps | Sales volume | In 10 thousand sets | 199.63 | 218.20 | -8.51% |
Output | In 10 thousand sets | 202.83 | 182.51 | 11.13% | |
Storage | In 10 thousand sets | 5.51 | 2.31 | 138.53% | |
Fuel management system- fuel injector | Sales volume | In 10 thousand suits | 217.58 | 184.80 | 17.74% |
Output | In 10 thousand suits | 243.00 | 148.80 | 63.31% | |
Storage | In 10 thousand suits | 41.42 | 16.00 | 158.88% | |
After-treatment system - purifier | Sales volume | In 10 thousand pieces | 386.69 | 370.63 | 4.33% |
Output | In 10 thousand pieces | 413.57 | 338.19 | 22.29% | |
Storage | In 10 thousand pieces | 75.73 | 48.56 | 55.95% | |
Air management system -turbocharger | Sales volume | In 10 thousand sets | 91.52 | 81.80 | 11.88% |
Output | In 10 thousand sets | 98.93 | 82.80 | 19.48% | |
Storage | In 10 thousand sets | 25.60 | 18.00 | 42.22% | |
Brake system - vacuum pump | Sales volume | In 10 thousand sets | 734.32 | ||
Capacity | In 10 thousand sets | 737.68 | |||
Inventory | In 10 thousand sets | 16.17 |
Description for relevant year-on-year data changing over 30%? Applicable □ Not applicableMarket demand and customer share rose, resulting in an increase in year-end inventory.
(4) Performance of significant sales contracts, major procurement contract entered into by the Companyup to the current reporting period
□ Applicable ? Not applicable
(5) Composition of operation cost
Classification of industries and products
In RMB
Industries | Item | 2023 | 2022 | Year-on-year increase(+)/decrease(-) | ||
Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
Automotive components | Direct material | 6,555,172,710.12 | 72.17% | 8,095,497,519.84 | 75.95% | -19.03% |
Automotive components | Labor cost | 1,032,120,288.45 | 11.36% | 929,458,806.34 | 8.72% | 11.05% |
Automotive components | Depreciation | 365,295,186.48 | 4.02% | 343,934,013.85 | 3.23% | 6.21% |
Automotive components | Varieties of consumption | 1,130,596,336.72 | 12.45% | 1,289,391,589.88 | 12.10% | -12.32% |
In RMB
Products | Item | 2023 | 2022 | Year-on-year increase(+)/decrease(-) | ||
Amount | Ratio in operation | Amount | Ratio in operation |
cost
cost | cost | |||||
Fuel management system | Direct material | 2,254,464,928.67 | 57.68% | 2,825,991,694.28 | 63.81% | -20.22% |
Fuel management system | Labor cost | 609,871,806.26 | 15.60% | 645,954,393.05 | 14.59% | -5.59% |
Fuel management system | Depreciation | 253,355,374.61 | 6.48% | 224,295,673.29 | 5.06% | 12.96% |
Fuel management system | Varieties of consumption | 790,558,079.65 | 20.23% | 732,339,489.37 | 16.54% | 7.95% |
After-treatment system | Direct material | 2,667,691,488.46 | 89.46% | 4,565,803,028.05 | 86.55% | -41.57% |
After-treatment system | Labor cost | 47,234,645.82 | 1.58% | 149,342,308.89 | 2.83% | -68.37% |
After-treatment system | Depreciation | 27,439,285.16 | 0.92% | 72,074,926.36 | 1.37% | -61.93% |
After-treatment system | Varieties of consumption | 239,771,470.51 | 8.04% | 488,030,494.27 | 9.25% | -50.87% |
Air management system | Direct material | 449,083,528.19 | 87.34% | 410,313,252.05 | 87.64% | 9.45% |
Air management system | Labor cost | 33,448,206.33 | 6.50% | 31,326,998.91 | 6.69% | 6.77% |
Air management system | Depreciation | 17,304,418.13 | 3.36% | 16,459,950.43 | 3.52% | 5.13% |
Air management system | Varieties of consumption | 14,418,612.79 | 2.80% | 10,070,533.76 | 2.15% | 43.18% |
Other automotive components | Direct material | 1,183,932,764.80 | 70.53% | 293,389,545.46 | 60.33% | 303.54% |
Other automotive components | Labor cost | 341,565,630.04 | 20.35% | 102,835,105.49 | 21.15% | 232.15% |
Other automotive components | Depreciation | 67,196,108.58 | 4.00% | 31,103,463.77 | 6.40% | 116.04% |
Other automotive components | Varieties of consumption | 85,848,173.77 | 5.11% | 58,951,072.47 | 12.12% | 45.63% |
(6) Whether there was a change in the scope of consolidation during the reporting period
?Yes ?No
(7) Major changes or adjustment in business, product or service of the Company in the reporting Period
□ Applicable ?Not applicable
(8) Major sales and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) | 4,875,550,091.28 |
Proportion in total annual sales volume for top five clients | 43.95% |
Ratio of the related party sales in total annual sales from top five clients | 32.03% |
Information of top five clients of the Company
Serial No. | Name | Sales (RMB) | Proportion in total annual sales |
1 | Robert Bosch Company | 1,878,794,642.29 | 16.94% |
2 | RBCD | 1,673,734,280.25 | 15.09% |
3 | Client 1 | 517,223,548.99 | 4.66% |
4 | Client 2 | 451,962,380.68 | 4.07% |
5 | Client 3 | 353,835,239.07 | 3.19% |
Total | -- | 4,875,550,091.28 | 43.95% |
Other situation of main clients?Applicable □ Not applicableThe Company has association with RBCD and Robert Bosch Company. In addition, the directors, supervisors, senior executives,core technicians and actual controller of the Company have no equity in main suppliers directly or indirectly.Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) | 2,211,016,690.60 |
Proportion in total annual purchase amount for top five suppliers | 24.57% |
Ratio of the related party purchase in total annual purchase amount from top five suppliers | 16.07% |
Information of top five suppliers of the Company
Serial No. | Suppliers | Purchasing amount (RMB) | Ratio in annual total purchasing amount |
1 | WFEC | 956,576,727.30 | 10.63% |
2 | Supplier 1 | 596,707,260.00 | 6.63% |
3 | RBCD | 267,248,230.21 | 2.97% |
4 | Robert Bosch Company | 222,259,377.33 | 2.47% |
5 | Supplier 2 | 168,225,095.76 | 1.87% |
Total | -- | 2,211,016,690.60 | 24.57% |
Other notes of main suppliers of the Company? Applicable □ Not applicableWFEC, RBCD and Robert Bosch Company are the Company’s related parties. In addition, the directors, supervisors, seniorexecutives, core technicians and actual controller of the Company have no equity in main suppliers directly or indirectly.
3. Expense
In RMB
2023 | 2022 | Year-on-year increase(+)/decrease(-) | Note of major changes | |
Sales expenses | 230,571,186.60 | 189,528,090.71 | 21.66% | |
Administration expenses | 612,096,726.09 | 586,386,474.32 | 4.38% | |
Financial expenses | 48,040,932.65 | 82,327,615.76 | -41.65% | Mainly due to the decrease in loan interest |
R&D expenses | 667,871,159.95 | 581,488,711.88 | 14.86% |
4. R&D investment
?Applicable □ Not applicable
Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
Development and application of the core components of clean fuel injection system | R&D the technology for alternative(hydrogen,natural gas, etc) traditional fuel injection system | In progress, some models have entered customer application. | Resulting a core component products for clean fuel injection system and apply to the market | Promotes the market share of clean fuel products in the future |
Development andapplication on thecommon-rail pumpproducts to meet theEuro VII emissionstandard
Development and application on the common-rail pump products to meet the Euro VII emission standard | Development on the common-rail pump products that meets the Euro VII emission standards for automotive diesel engines | In progress, some models have entered customer application. | Resulting the products that meets the Euro VII emission standards for automotive diesel engines and apply to the market | Enhance the existing products and extend the life of traditional products |
Development and application on the diesel fuel injection parts products to meet the off-road T4 emission standards | Development on the diesel fuel injection parts products that meets the off-road T4 emission standards | In progress, some models have entered customer application and are in the stage of adaptive design. | Resulting the diesel fuel injection parts products that meets the off-road T4 emission standards and apply to the market | Enhance the existing products and extend the life of traditional products |
Development and application on the passenger car after-treatment products to meet the National VI emission standards | Development on the passenger car after-treatment products that meets the National VI emission standards | Have been batch produced | Resulting the passenger car after-treatment products that meets the National VI emission standards and apply to the market | Enhance the existing products and extend the life of traditional products |
Development and application on the commercial vehicle after-treatment products to meet the Euro VII emission standards | Development on the commercial vehicle after-treatment products that meets the Euro VII emission standards | In progress, some models have already entered customer applications, and a small number have been supplied in small batches. | Resulting the passenger car after-treatment products that meets the Euro VII emission standards and apply to the market | Enhance the existing products and extend the life of traditional products |
Development and application on the after-treatment products to meet the off-road T4 emission standards | Development on the after-treatment products that meets the off-road T4 emission standards | Have been batch produced | Resulting the after-treatment products that meets the off-road T4 emission standards and apply to the market | Enhance the existing products and extend the life of traditional products |
Development of exhaust system technology for hybrid vehicles | Develop exhaust systems to meet the requirements of insulation, capacity reduction, cost reduction, and high noise reduction performance in hybrid and extended range projects | In progress, some models have already entered customer applications, and a small number of models have started to be supplied in small batches. | Through the development of high reliability in the hot end and new technologies for silencers, develop post-treatment products satisfying hybrid vehicle models and are applied in the market | Enhance the existing products and extend the life of traditional products |
Development and application on the supercharger products for gasoline engine to meet the National VI emission standards | Development on the supercharger products for gasoline engine that meets the National VI emission standards | Have been batch produced | Resulting the supercharger products for gasoline engine that meets the National VI emission standards and put them on the market | Enhance the existing products and extend the life of traditional products |
Development and application on the supercharger products for diesel engine to meet the Euro VII emission standards | Development on the supercharger products for diesel engine that meets the Euro VII emission standards | In progress, some models have already entered customer applications, and a small number of models have started to be supplied in small batches. | Resulting the supercharger products for diesel engine that meets the National VI emission standards and put them on the market | Enhance the existing products and extend the life of traditional products |
Development and application on the supercharger products for natural gas engine | Development on the supercharger products for natural gas engine that meets the National | In progress, some models have already entered customer | Resulting the supercharger products for natural gas engine that meets the National | Enhance the existing products and extend the life of traditional products |
to meet the National VIemission standards
to meet the National VI emission standards | VI emission standards | applications, and a small number of models have started to be supplied in small batches. | VI emission standards and put them on the market | |
Development and application of the supercharger for automotive incremental engine | Development on the supercharger for automotive incremental engine | The project is completed, and some models have entered customer applications. They are equipped with a series of well-known brand products in the industry and are starting to be supplied in batch. | Resulting the supercharger products for automotive incremental engine and put them on the market | Enhance the existing products, fit in with new application scenarios and extend the life of traditional products |
Development and application of turbochargers for hybrid engines in vehicles | Develop turbochargers for hybrid engines in vehicles | In progress, some models have already entered customer applications, and a small number of models have started to be supplied in small batches. | Develop hybrid engine supercharger products for vehicles and put them into the market | Enhance the existing products, fit in with new application scenarios and extend the life of traditional products |
Development and application on the core materials of hydrogen fuel cell | Development on the core materials (one membrane & two plates, catalyst)of hydrogen fuel cell | In progress, relevant products have achieved small production and have entered customer application | Resulting a large-scale production of core materials for the hydrogen fuel cells and put them on the market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application on BOP key component products of hydrogen fuel cells | Development on the BOP key component (valve, pumps, etc.) products of hydrogen fuel cells | In progress, the relevant products have been produced in small batches and have entered customer applications. A small amount of models have been supplied in small batch. | Resulting a large-scale production of BOP key component products of hydrogen fuel cells and put them on the market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application of electric drive components for new energy vehicles | Develop new energy vehicle electric drive components products | In progress, the relevant products have been mass-produced and have entered customer applications. | Develop new energy vehicle electric drive components products and put on market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application of intelligent perception core module products | Develop intelligent perception core module products (millimeter wave radar) | In progress, the sample of relevant products have been delivered. | Develop intelligent perception core module products and put on market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and integration of intelligent seat products | Develop and promotion of intelligent seat products |
Commercial vehicleshave achieved batchproduction andapplication in multipleprojects, and passengercars have obtainedmultiple projects. Theyare currently in theresearch anddevelopment stage and
Enhance market recognition and continuously expand market scale. | Main direction of the emerging business of the Company in the future and new business growth points |
will soon be put intoproduction andapplication.
will soon be put into production and application. | ||||
Development of mechanical components related to intelligent seat products | Development and promotion of intelligent seat products | In the research and development stage, there are already potential customers | Develop innovative products and put on market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application on core component products of hydraulic system | Development on hydraulic system core component products | In progress, some products have been applied in batch | Resulting the hydraulic system core component products and put them on the market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application on core component products of brake system | Development on brake system core component products | Some products have entered the stage of mass production and delivery, while for others, the company is communicating with customers | Resulting the brake system core component products and put them on the market | Main direction of the emerging business of the Company in the future and new business growth points |
Development and application of the intelligent manufacturing equipment | Development on intelligent manufacturing equipment | In progress, some equipment has been used by customers for manufacturing and testing, and new equipment design has been carried out according to requirements. | Resulting the intelligent manufacturing equipment and put them on the market | Improve the technological capabilities in field of intelligent manufacturing and creating economic benefits |
Personnel of R&D
2023 | 2022 | Change ratio | |
Number of R&D (person) | 1,258 | 1,232 | 2.11% |
Ratio of number of R&D | 21.84% | 20.92% | 0.92% |
Education background | |||
Undergraduate | 697 | 708 | -1.55% |
Master | 279 | 240 | 16.25% |
Age composition | |||
Under 30 | 446 | 328 | 35.98% |
30~40 | 512 | 649 | -21.11% |
Investment of R&D
2023 | 2022 | Change ratio | |
R&D investment (RMB) | 667,871,159.95 | 581,488,711.88 | 14.86% |
R&D investment/Operation revenue | 6.02% | 4.57% | 1.45% |
Capitalization of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
Capitalization of R&D investment/R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable ?Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable ? Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable ? Not applicable
5. Cash flow
In RMB
Item | 2023 | 2022 | Year-on-year growth rate |
Subtotal of cash inflow arising from operating activities | 12,367,352,240.11 | 16,421,144,267.50 | -24.69% |
Subtotal of cash outflow arising from operating activities | 10,741,102,328.21 | 18,996,886,916.93 | -43.46% |
Net cash flows arising from operating activities | 1,626,249,911.90 | -2,575,742,649.43 | 163.14% |
Subtotal of cash inflow from investing activities | 5,806,265,016.93 | 12,081,224,107.55 | -51.94% |
Subtotal of cash outflow from investing activities | 4,595,753,280.52 | 8,485,283,459.06 | -45.84% |
Net cash flows arising from investing activities | 1,210,511,736.41 | 3,595,940,648.49 | -66.34% |
Subtotal of cash inflow from financing activities | 2,696,375,308.64 | 4,817,002,243.34 | -44.02% |
Subtotal of cash outflow from financing activities | 5,769,684,317.11 | 4,681,832,516.84 | 23.24% |
Net cash flows arising from financing activities | -3,073,309,008.47 | 135,169,726.50 | -2,373.67% |
Net increase of cash and cash equivalents | -215,130,910.41 | 1,183,098,668.09 | -118.18% |
Main reasons for y-o-y major changes in aspect of relevant data? Applicable □ Not applicable
1. The net cash flow arising from operating activities increased yoy, mainly due to the platform trade cash outflow in the same periodlast year;
2. The net cash flow arising from generated from investment activities decreased by 2.385 billion yuan yoy, mainly due to changes inthe financial management structure and the decrease in scale during the reporting period;
3. The net cash flow arising from financing activities decreased by 3.208 billion yuan yoy. For the cash inflow arising from financingactivities in the reporting period, borrowings reduced by 2.00 billion yuan; For the cash outflow arising from financing activities,repayment of loans rose by 3.00 billion yuan yoy and dividends decreased by 1.5 billion yuan.Reasons of major difference between the cash flow of operation activity in the reporting period and net profit of the Company
□ Applicable ? Not applicable
V. Analysis of the non-main business
?Applicable □Not applicable
In RMB
Amount | Ratio in total profit | Cause description | Whether be sustainable | |
Investment earnings | 1,701,990,058.24 | 87.99% | 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 | 9,767,646.64 | 0.50% | ||
Asset impairment | -331,275,532.54 | -17.13% | ||
Non-operating income | 17,111,807.24 | 0.88% | ||
Non-operating | 4,411,191.85 | 0.23% |
expense
expense
VI. Assets and liability analysis
1. Major changes of assets composition
In RMB
Year-end of 2023 | Year-begin of 2023 | Ratio changes (+/-) | Note of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary funds | 2,274,771,699.14 | 8.10% | 2,389,551,930.76 | 8.38% | -0.28% | |
Account receivable | 3,857,539,958.20 | 13.74% | 3,127,490,177.25 | 10.96% | 2.78% | |
Inventory | 2,068,533,030.94 | 7.37% | 2,283,119,656.27 | 8.00% | -0.63% | |
Investment real estate | 46,926,716.49 | 0.17% | 49,296,869.73 | 0.17% | 0.00% | |
Long-term equity investment | 5,947,633,507.07 | 21.18% | 6,282,818,108.96 | 22.02% | -0.84% | |
Fixed assets | 3,969,574,102.87 | 14.14% | 3,769,984,185.94 | 13.21% | 0.93% | |
Construction in progress | 564,605,931.90 | 2.01% | 509,105,587.49 | 1.78% | 0.23% | |
Right-of-use assets | 48,832,472.85 | 0.17% | 41,865,100.38 | 0.15% | 0.02% | |
Short-term borrowings | 838,889,557.51 | 2.99% | 3,604,376,527.82 | 12.63% | -9.64% | Repay loans |
Contract Liability | 77,686,881.24 | 0.28% | 94,850,083.23 | 0.33% | -0.05% | |
Long-term borrowings | 299,800,000.00 | 1.07% | 238,000,000.00 | 0.83% | 0.24% | |
Lease liability | 37,733,196.51 | 0.13% | 31,589,277.20 | 0.11% | 0.02% | |
Goodwill | 122,316,819.20 | 0.44% | 237,682,375.72 | 0.83% | -0.39% | Provision for impairment of goodwill |
Foreign assets account for a relatively high proportion
□Applicable ?Not applicable
2. Assets and liability measured by fair value
?Applicable ? Not applicable
In RMB
Item | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Amount of sale in the period | Other changes (+,-) | Amount at period-end |
Financial assets | ||||||||
1.Trading financial asset(excluding derivative financial assets) | 4,045,429,568.87 | 9,762,106.38 | 2,337,700,000.00 | 189,637,156.20 | -3,007,417,254.03 | 3,195,837,265.02 | ||
2.Other equity instrument investment | 677,790,690.00 | 677,790,690.00 | ||||||
3.Receivable financing | 1,918,368,845.21 | -256,618,895.75 | 1,661,749,949.46 | |||||
Subtotal of financial assets | 6,641,589,104.08 | 9,762,106.38 | 2,337,700,000.00 | 189,637,156.20 | -3,264,036,149.78 | 5,535,377,904.48 |
Above total
Above total | 6,641,589,104.08 | 9,762,106.38 | 2,337,700,000.00 | 189,637,156.20 | -3,264,036,149.78 | 5,535,377,904.48 | ||
Financial liabilities | 747,115.75 | -747,115.75 | 0.00 |
Other changes: Maturity redemptionWhether there have major changes on measurement attributes for main assets of the Company in the report period or not
□ Yes ?No
3.The assets rights restricted till end of the reporting period
In RMB
Item | Book value at period-end | Restriction reason |
Monetary funds | 22,174,151.94 | Dollar margin for foreign exchange contracts |
Monetary funds | 7,902,000.00 | IRD performance bond |
Monetary funds | 210,720.00 | Mastercard earnest money |
Monetary funds | 4,000.00 | ETC freezing |
Note receivable | 97,820,000.00 | Notes pledge for bank acceptance |
Receivable financing | 568,256,134.85 | Notes pledge for bank acceptance |
Receivable | 14,581,430.53 | Pledge to obtain loans |
Total | 710,948,437.32 |
VII. Investment analysis
1. Overall situation
□Applicable ?Not applicable
2. Major equity investment obtained in the reporting period
□ Applicable ? Not applicable
3. Major non-equity investment in progress in the reporting period
□ Applicable ? Not applicable
4. Financial assets 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 | 78,834,732.00 | -2,078,016.00 | -2,078,016.00 | 76,756,716.00 | Trading financial asset | Own fund |
Domesticandforeignstocks
Domestic and foreign stocks | 002009 | Miracle Automation | 69,331,500.00 | Measured by fair value | 66,693,600.00 | 4,380,300.00 | 4,380,300.00 | 71,073,900.00 | Trading financial asset | Own fund | |||
Domestic and foreign stocks | 601456 | Guolian Securities | 12,000,000.00 | Measured by fair value | 186,608,914.00 | 3,571,786.00 | 189,096,700.00 | 3,571,786.00 | 1,084,000.00 | Other non current financial assets | Own fund | ||
Domestic and foreign stocks | 601777 | Lifan Technology | 62,845.00 | Measured by fair value | 48,516.34 | 14,328.66 | 62,845.00 | 14,328.66 | Trading financial asset | Own fund | |||
Domestic and foreign stocks | 000980 | Zoyte Auto | 613,265.48 | Measured by fair value | 462,414.48 | 15,196.72 | 477,611.20 | 15,196.72 | Trading financial asset | Own fund | |||
Total | 281,215,610.48 | -- | 332,648,176.82 | 5,903,595.38 | 0.00 | 0.00 | 189,637,156.20 | 5,903,595.38 | 148,914,616.00 | -- | -- | ||
Disclosure date of securities investment approval of the Board | 2012-03-24 | ||||||||||||
2013-06-04 |
(2) Derivative investment
□ Applicable ? Not applicable
There is no derivative investment during the reporting period.
5. Application of raised proceeds
□ Applicable ? Not applicable
There is no application of raised proceeds during the reporting period.
VIII. Sales of major assets and equity
1.Sales of major assets
□ Applicable ? Not applicable
No major assets were sold during the reporting period.
2. Sales of major equity
□ Applicable ? Not applicable
IX. 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 assets | Net assets | Operating revenue | Operating profit | Net profit |
WFLD
WFLD | Subsidiary | After-treatment system products | 502,596,300.00 | 5,476,474,238.91 | 2,785,367,797.04 | 3,605,313,446.67 | 217,659,495.26 | 232,172,143.48 |
WFJN | Subsidiary | Fuel management system products | 346,286,825.80 | 1,563,336,557.28 | 1,157,841,673.30 | 661,256,020.17 | 181,227,419.10 | 164,076,571.71 |
RBCD | Equity participation enterprise | Fuel management system products | USD 382,500,000.00 | 16,510,061,525.44 | 8,109,015,591.15 | 13,269,586,309.56 | 2,998,823,919.91 | 2,971,177,035.99 |
Zhonglian Electronics | Equity participation enterprise | Gasoline system products | 600,620,000.00 | 8,432,987,196.13 | 8,420,473,903.85 | 30,337,704.69 | 2,047,599,416.43 | 2,040,443,663.38 |
Subsidiary acquired and disposed in the reporting period
□ Applicable ? Not applicable
Explanation of the main controlling and participating companiesX. Structured subject controlled by the Company
□ Applicable ? Not applicable
XI. Prospect of future development of the Company(I) Future development strategy of the CompanyBased on corporate vision “expert of hundred years in automobile core parts industry”, during the “14
thFive-Year Plan” period, theCompany will continue to adhere to the strategic policy of “internationalization, autonomy and multi-dimensional”, accelerate the“double-engine drive” strategy of “optimizing and upgrading existing core businesses, breaking through and blocking strategicemerging businesses”, and form “Energy saving and emission reduction”, “Green hydrogen energy”, “Intelligent electric” and “Othercore components”.
(1) Energy saving and emission reduction, as the existing core business segment of the Company, contains three major business areasof high pressure fuel injection system, After-treatment system and turbocharging. The Company has positioned new increments,actively promoted business transformation and upgrading, maintained its industry leading position and maintained organic businessgrowth. Under the general trend of low carbon and energy saving, the Company will seize the strategic opportunity of upgradingemission regulations, expedited the expansion of the market of products related to ordinary hybrid and plug-in hybrid, and intensifythe cooperation with joint venture brands and head of new car-making forces to further increase the market share of products; TheCompany will focus on high efficiency, energy saving (including plug-in hybrid), clean alternative fuel (natural gas, methanol,hydrogen, etc.) fuel, after-treatment and turbocharging, etc. during product development, strengthen key technology productdevelopment capabilities, enhance forward engineering capabilities and system integration as well as application developmentcapabilities; In addition, the Company will consolidate and improve its process operation ability and improve its cost and qualitycontrol ability.
(2) Green hydrogen energy is an important strategic direction for the transformation of the Company's business structure. TheCompany will focus on the core components of hydrogen fuel cells and hydrogen production from renewable energy in the middleand upper reaches of the hydrogen energy industry chain, building core competitiveness and realizing large-scale business growth.
1. In terms of the business of core components of hydrogen fuel cell, the Company will, based on the core technical capabilities ofcore materials (membrane electrode, graphite bipolar plate and metal bipolar plate) and key components of BOP that have beenacquired and constructed at present, accelerate the establishment and operation of organizational planning, promote the constructionof three major bases in the world and realize the small-scale market applications.
①Enhance global engineering capability. The Company will actively promote the construction of engineering centers in Asia-Pacific,Europe and North America, strengthen investment, continuously improve the level of engineering technology, especially the researchand development and application of product technology, and quickly realize the batch production of customer market projects.
②Expand global business functions. The Company will accelerate the capacity building of business centers in Asia-Pacific, Europeand North America, strengthen the planning and coordination of global markets and operations, realize the sharing of strategicresources and efficient and coordinated market expansion among centers and business segments, actively expand international anddomestic customers, continuously deepen the cooperative relationship with strategic partners, strategic customers and majorcustomers, and promote the large-scale application of the market.
③Enhance global manufacturing capability. Accelerate the capacity building of manufacturing centers in Asia-Pacific, Europe andNorth America, with the goals of global production capacity of 8,000,000 membrane electrodes, 9,000,000 graphite bipolar plates,4,000,000 metal bipolar plates and 100,000 BOP key parts during 2021-2025; Among them, the target production capacity of AsiaPacific (China) is 4,000,000 membrane electrodes, 5,000,000 graphite bipolar plates, 2,000,000 metal bipolar plates and 100,000BOP key parts.
④Strengthen strategic coordination and resource integration. Based on the platform of Hydrogen Energy Division, strengthen globalbusiness strategic coordination and resource integration. In particular, in terms of the construction of the Asia Pacific base, theCompany will integrate the business related to the core components of hydrogen fuel cells, strengthen the cooperation with variousstrategic partners, establish a joint venture company, WFQL, to develop the application, supply chain, manufacturing, sales andservice of products for the Asia Pacific market, mainly in China.
2. In terms of hydrogen production from renewable energy, based on the current core component technologies such as membraneelectrodes and graphite/metal bipolar plates, as well as the R&D, testing and verification capabilities of PEM electrolytic waterreactors, the Company has focused on cultivating and incubating PEM electrolytic water hydrogen production system and equipmenttechnologies to realize product market applications.
①Focus on the implementation of the demonstrative line project. Complete the construction of Phase I and Phase II of the PEMelectrolytic water hydrogen production demonstration line, and achieve the overall solution design and implementation servicecapabilities for electrolytic water hydrogen production.
②Actively acquire key technology capabilities. Explore external technology and industrial investment cooperation opportunities,expedite independent R&D, and build key technology capabilities such as electric reactors, system equipment design, developmentand integration. Develop and incubate a number of low-power system equipment products in niche sectors (hydrogen production) anddevelop high-power system equipment technologies and products applicable to energy storage and hydrogen refueling stations.
③Expand market application projects. Vigorously extend the customers and markets, endeavor to realize the application of smallpower system equipment and shape small batch market application, actively participate in the large-scale renewable energy hydrogenproduction demonstration projects, and reach domestic leading enterprises in the industry to explore cooperation opportunities.
(3) Intelligent electric segment Focus on the four major business areas of core components of electric drive system, thermalmanagement system and core components, core modules for intelligent sensing, as well as core components in the cabin, shape corecompetitiveness in market, technology and intelligent manufacturing, and realize business transformation and growth in scale.
1. Core components of electric drive system: based on the understanding of core automotive parts system R&D capabilities and high-end intelligent manufacturing capabilities, develop the core electric drive parts business and promote market scale, as well as theforward-looking layout of the wheel hub motor technology of the Company, cultivate and incubate in all aspects and realize marketapplications of products.
①For electric drive core parts, take motor shaft, water jacket, end cover, etc. as the entry point, extend to other core parts, enrich theproduct catalogue, and shape the supply capabilities of key products; Based on extensive practical experience accumulated throughcooperation with renowned domestic electric drive enterprises, make breakthroughs with key new energy vehicle enterprisecustomers, especially high-end new power, establish deep strategic cooperation and promote the diversified development of strategiccustomers.
②Expedite the product technology optimization of wheel motors, realize the penetration to passenger car scenario, and promote theconstruction of assembly capacity to establish batch production capabilities.
2. For thermal management system and core components, take electronic oil pump as the entry point, rely on the group-basedtechnology, market and manufacturing platform advantages of the Company, fully promote the development and application of keycomponents such as integrated pumps, valves, heat exchangers as well as strategic products of thermal management system, andfurther proactively seek the development in other application scenarios such as energy storage.
① Realize the breakthrough of high-end customers and in-depth strategic cooperation of customers. To actively penetrate maturemainstream high-end customers in China and Europe by leveraging the overseas technology and product accumulation of VHacquired by the Company, complete technology validation and shape the first batch of product supply; Actively explore globalcustomer resources such as OEM and electric drive system integrators of self-research electric drive/thermal management system,converge channel resources integration capabilities, and make breakthroughs in key strategic customers.
②Synchronize global R&D and actively extend product portfolio. Promote global resource planning and layout, construct globalsynchronous R&D capability, realize global synchronous R&D synergy, further expand product series, actively launch thedevelopment and supply capabilities of core components for thermal management system-level solutions, and extend products suchas integrated pumps, valves and heat exchangers.
③Upgrade global batch production and supply capabilities. Reinforce the construction of global supply chain system capabilities inEurope and China, integrate the intelligent manufacturing elements of the Company, and achieve large-scale production and supplycapabilities.
3. Intelligent perception core module
For core module of intelligent sensing business, strategically focus on millimeter wave radar, offer customized radar modules andsensing solutions, penetrate from basic scenarios and cultivate capabilities, meanwhile aim at high-end application market forautonomous driving.
① Build core competencies and achieve commercial breakthroughs. Build a market-oriented independent business operation teamwith industry competitiveness, complete the development, testing, and production line construction of 3D/4D product platforms,achieve commercialization breakthroughs, and seek opportunities for expanding investment, mergers and acquisitions, and deepcooperation with strategic partners.
② Focus on improving segmented markets and industrial scale. Focusing on segmented scenarios such as trunk logistics, integratingresources, with localized service capabilities as the core, building large-scale industrialization capabilities, and enhancingcommercialization capabilities through resource integration and support with strategic partners, forming independent business unitsfor commercial operation.
③ The ability to transform the main scene and form system solution. The accumulated resources from segmented scenes aretransformed into the main scene, establishing a system supply capability of radar and domain control combination, forming marketcompetitiveness and customer combination, and improving data closed-loop accumulation, with the ability to provide multi-sensorfusion solution services.
4. Core components in the cabin
Focus on core components in the cabins, of which, take the initiative to enter the medium and high-end commercial vehicle market,develop a competitive edge with differentiated products of high performance, high quality, high cost performance, accelerate thedevelopment of industrial scale and extend to the medium and high-end passenger car market; Establish the capabilities of systematicdesign and testing of seating products, improve technical innovation capabilities, develop towards networking and intelligence, andalign with the demands of intelligent cockpit scenes. Meanwhile, the Company will leverage its cooperation with smart cockpitpartners to engage in the business field of smart cockpit based on domain control technology and endeavor to seek and expandbusiness opportunities related to smart cockpit.
(4) For other core components segments, the Company will further promote the business transformation and upgrading of hydraulicsystems and their core components, core components of braking systems, intelligent manufacturing equipment, post-marketing andtrading, and actively explore the layout of cutting-edge technologies and markets in line with the strategic orientation of thedevelopment of the Company to achieve an increase in business volumes. In particular, for the hydraulic system and core
components as the main strategic development direction of the Company, jointly expand the market of walking hydraulics andindustrial hydraulics by establishing a joint venture with Bosch Rexroth. Meanwhile, integrate the strategic resources of the overallvalue chain process of both sides, continue to establish a more cost advantage, better performance, faster response time andcomprehensive competitiveness, and continue to promote the strategic business layout and development of hydraulic systems andcore components.The Company will further deepen the management plan, budget management and performance management systems under theguidance of strategies, implement differentiated control and governance, implement efficient inter-segment business synergy,accelerate the training of strategic core talents, and improve the operation and management capabilities during the strategictransformation period in a comprehensive manner to satisfy the medium and long-term strategic development demands of theCompany.(II) Priority tasks for 2024
1. Continuously promoting the operation of the strategic system and effectively ensuring the layout of new businessesPromote the implementation of the 14th Five Year Plan, with a focus on implementing several improvement suggestions from themid-term evaluation; Deepen the planning of new business directions such as hydraulic and thermal management, and seek newstrategic development opportunities for the company; Follow up and implement strategic planning around potential strategic projectssuch as radar, car seats, and hydrogen storage. Promote the implementation of projects for independent operation of intelligentperception services, accelerate investment and cooperation with strategic partners in the seat business, and advance investment anddevelopment in the new stage of the seat business; Promote investment cooperation in important potential strategic businesses suchas high-pressure hydrogen storage, and continue to follow up on post investment cooperation and strategic investment actions forprojects such as Auto Link and WFPM ,etc.
2. Continuously improving product market performance and fully expanding market shareIn terms of fuel injection systems, ensure the delivery of common rail pump orders, ensure the market share of VE pumps,continuously explore incremental markets, and ensure the export of mechanical pumps and supply to special markets; Promote thesupply of GP products in key customer projects. In terms of post-processing systems, promote the expansion of market business inhybrid passenger vehicles, natural gas commercial vehicles, pickup trucks, non road vehicles, etc., and complete project iterationcontinuation and new project batch production. In terms of intake system, steadily increasing the market share of existing customersfor four cylinder gasoline turbochargers and accelerating the development of new customers for hybrid projects. Focusing on theexpansion of four cylinder variable nozzle turbochargers and special series diesel turbochargers projects; Accelerate the massproduction of multiple key customer projects for six cylinder turbochargers and further expand the market for alternative fuels.Relying on the "the Belt and Road" strategy, consolidate and expand overseas markets, aim at domestic market opportunities, reserveafter-sales products in advance, actively develop large fleet businesses, and seek new growth points; Continuously seeking domesticcustomer cooperation opportunities and obtaining demonstration projects for hub motor products; strive to complete key customerprojects for mass production of fuel cell components such as membrane electrodes, graphite bipolar plates, metal bipolar plates, andhydrogen supply components, and actively seek new project opportunities; Realize the supply of gate radar and cabin radar projects,complete technical verification and product delivery for multiple customer projects, and verify the 4D radar target list client; Findmore passenger car customer projects for automotive seat products.
3. Continuously conquering core technologies of new products and assisting in breakthroughs in the new product marketEfficient internal combustion power products, completed the development of a 2000 bar upgrade platform for the GP system, andcompleted engine tests for top customers, achieving small-scale supply; Complete the development and small-scale supply of sampleC for the dual fuel injector project; Complete the standard durability verification and engine performance verification of the methanolcylinder high-pressure injection system oil pump platform; Complete the pre research of low-pressure direct injection technology forhydrogen internal combustion engine injectors and ignite the engine; Conduct research on ammonia injection system technology;Complete batch supply release of CB6-25 single cylinder high-pressure pump. Accelerate the application of post-treatment hybridexhaust systems, expand export projects, accelerate the pre research of non road low-cost technology route projects, National Sevenpost-treatment and alternative fuel post-treatment systems. Focus on promoting the acquisition and development of four stage fuel
consumption and hybrid technology roadmap projects for four cylinder turbochargers, strengthening the development of efficient sixcylinder turbochargers for internal combustion engines, optimizing and improving alternative fuel turbochargers, and obtaining andmass producing key customer projects.In terms of core materials for hydrogen fuel cells, follow up with customers, plan and develop high-performance catalystssimultaneously, and complete the development of second-generation high-performance membrane electrodes; Develop gas diffusionlayer products and complete the construction of incubation production lines; Complete the development of high-pressure valve andhydrogen circulation pump B samples; Complete the verification of the second-generation low-pressure valve platform; Complete thereliability verification of the air bearing, the core component of the air compressor. In terms of thermal management systems, strivefor new customer projects for thermostats and electronic water pumps and achieve mass production; Complete the development ofelectronic oil pump samples for 120W and above 200W. In the field of PEM electrolysis water hydrogen production, industrialproduction demonstration application of a hundred kilowatt level hydrogen production system has been completed, and research on amegawatt level electrolysis cell platform has been initiated. In terms of situational awareness system, complete the designatedcustomer project for in cabin radar and achieve mass production; Complete gate radar product testing and deliver in small batches;Complete the development and small batch delivery of 3D angle radar B samples; Complete coal safety certification and applicationimplementation of mining radar; Targeted and small-scale delivery of projects to new radar clients before completing 4D imaging;Complete the development of 4D imaging angle radar B samples.
4. Continuously creating a quality culture atmosphere, comprehensively promoting intelligent manufacturing applicationsOptimize the quality management system architecture, quality manual, and external audit improvement experience management;Promote the application of special feature screening methods and quality valve evaluation mechanisms; Continuously improveprocess compliance by combining layered process audits, Q11, and full process element management and evaluation. Continuouslypromote lean production management, deepen continuous improvement of systems and workshops, and implement refined analysisand management of labor costs. Continuously improving the research and application capabilities of intelligent manufacturing,accelerating the comprehensive implementation of the company's intelligent manufacturing blueprint; Pilot manufacturing of big dataapplication scenarios, establishment of industrial mechanism business models, and exploration of data value.The R&D building project and the construction of the sixth phase of the 103 plot factory building project have been delivered onschedule, and the preliminary design of the hydrogen energy industry park has been completed; Complete the pilot construction ofthe energy management platform and continue to promote green office. Benchmark the environmental, health, and safetymanagement system, optimize compliance control of major safety risks and special equipment, and improve the investigation ofhidden dangers in sudden environmental accidents. Strengthen grid management, rely on EHS information supervision platform andon-site hierarchical control, achieve hierarchical responsibility implementation, and normalize and refine control.
5. Continuously strengthening excellent operational management, working together to promote high-quality developmentComprehensively promote the construction of organizational functions, authorization, and institutional process systems in thebusiness unit, continuously promote the deep integration of business plans and budgets, strengthen business monitoring analysis andorganizational performance management, and promote the platformization of project management. Continuously strengthening theability to respond to tax risks; Optimize the prediction of peak and valley values of funds, and improve the efficiency of fundutilization; Implement measures to optimize and improve the profitability of key customers and products, and continuously enhancethe company's profitability. Coordinate the construction of supplier management platforms, strengthen investment in technology costreduction projects, and focus on improving the quality level and delivery capacity of new energy procurement component suppliers;Focusing on supplier sourcing, cultivation, assistance, and exit management, focusing on slow flow generation, monitoring, anddisposal, strengthening order review, material risk assessment, and the ability to dispose of long-term stagnant materials. Promotedigital business transformation and achieve the launch of supplier management platforms; Promote the application of standardizedmodules in intelligent manufacturing and continuously build analytical capabilities for big data; Improve the information securitysystem and accelerate the application of artificial intelligence technology in manufacturing and business scenarios. Carry outknowledge and concept sharing, comprehensively promote special internal control inspections in key areas and core links, andconduct internal control self inspections in business units; Focus on carrying out legal revisions to the articles of association of
domestic subsidiaries, and provide legal services for major projects and businesses. Strengthen the introduction of key projecttechnical talents and core high-level talents, improve the talent development mechanism, promote personnel structure adjustment,and optimize the layout of core business talents; Strengthen the construction of international talent capacity, formulate overseas talentselection standards and training plans; Promote the construction of special capabilities for key functions and key business positions of"three airlines and one craftsman"; Comprehensively plan long-term incentives for core talents, deepen new business incentivemodels, and optimize employee performance systems.
(III) Possible risks and countermeasures
1. Macroeconomic and market risks
Currently, the macroeconomic and market conditions are still complex and challenging, with the automobile industry still facingrelatively high pressure. In case of a decline in demand from the automotive industry, the production, operation and profit level of theCompany will be affected to a certain extent.Countermeasures: The Company will constantly monitor macroeconomic and industry development trends, consolidate its existingbusiness market presence, actively expand new business, and strive to improve its core competitiveness and overall anti-riskcapabilities.
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, especiallyin the field of new energy, the management span is relatively large with potential operational management and investment risks.Countermeasures: The Company will continuously improve and optimize internal management, improve processes, and furtherregulate management and control operational risks; Reinforce the control of international business and accelerate the construction ofinternational talent team to satisfy the strategic development demands of the enterprise.
3. Risk of raw material price fluctuation
The main raw materials of the Company include steel, aluminum, precious metals, etc. of various grades, the continuous increase oftheir prices will pose the risk of cost increase to the Company.Countermeasures: The Company will actively improve its market forecasting capabilities, plan production capacity in advance, andreasonably control raw material inventories to reduce the exposure to raw material price fluctuations, while continuously optimizingsupply chain management, strengthening the vertical integration capability of the industry chain, and transferring part of the risksthrough 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.XII. Reception of investigation, communication and interview during the reporting period?Applicable □ Not applicable
Reception time | Reception place | Reception mode | Reception object type | Reception Object | Main content talked about and materials provided | Index of basic situation of research |
Febuary 6, 2023 | Conference room of the Company | Field research | Institution | Institutional investor | For details, please refer to the Record of Investor Relations Activities disclosed by the Company on Juchao Website (No. | http://www.cninfo.com.cn |
2023-001)
2023-001) | ||||||
Febuary 8, 2023 | Conference room of the Company | Field research | Institution | Institutional investor | For details, please refer to the Record of Investor Relations Activities disclosed by the Company on Juchao Website (No. 2023-001) | http://www.cninfo.com.cn |
From January 1, 2023 to December 31, 2023 | Interactive platform of investor relationship | Written inquiry | Other | Other | Basic company information and view of the market | Answered 65 questions online through the interactive platform for investor relations |
From January 1, 2023 to December 31, 2023 | Company tel. | Telephoning | Other | Other | Basic company information and view of the market | 1371 telephone communications with investors |
XIII. 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. Corporate governance of the CompanyDuring the reporting period, the Company earnestly implemented the Basic Internal Control Standards for Enterprise and itsguidance in strict accordance to the requirements of laws, administrative regulations, department provisions and normativedocuments as Company Law, Securities Law, Code of Corporate Governance for Listed Companies, Rules Governing the Listing ofshares on Shenzhen Stock Exchange and Guidelines on Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 1 -Standardized Operation of Main board listed company, continued to improve and enhance legal person governance structure andinternal control system, thus to standardize its operation.The actual status of corporate governance in accordance with therequirements of China Securities Regulatory Commission regulatory documents related to listing Corporation.The Company has established a series of document systems for standardized management including the Rules of Procedure of threecommittees, Working Rules, internal control system, Evaluation Management System of Internal Control, Information DisclosureManagement Approach, Financial Decision-making System of Significant Investment, Related Party Transaction ManagementSystem and Inside Information and Insider Management System. During the reporting period, the company revised its Articles ofAssociation twice twice, prepared the Operating Rules for Related Party Transaction Management, and optimized and improvedmultiple internal control documents; Organized multiple promotional and learning activities related to internal control systems andprocesses, shared the concept and knowledge of risk internal control, enhanced the risk control awareness of all employees, andcontinuously optimized the company's internal control system.According to the Company Law, Articles of Association and relevant laws and regulations, the company established a relativelycomplete organizational control architecture system. The company’s board of directors executes the resolution of general meeting ofstockholders, takes charge of the company’s significant decisions, and takes responsible for the general meeting of stockholders; thecompany sets up the general manager according to law to preside over the company’s daily production and operation andmanagement, organize and implement the resolutions of the board of directors, and take responsible for the board of directors; thecompany’s board of supervisors is the company’s supervisory body, takes responsible for behaviors of the directors and seniormanagement and the supervise the company’s financial affairs. The board of directors has four special committees including thestrategy committee, remuneration committee, audit committee, and nominations committee. The company’s general meeting ofstockholders, board of directors, board of supervisors, and management layer have clear rights and obligations, perform their ownduties, effectively check and balance, scientifically make decisions, coordinate operations, and lay a solid foundation for theCompany’s sustainable, stable and healthy development.The Company’s independent directors perform their duties and faithfully and conscientiously fulfill their obligations in strictaccordance with relevant regulations of Articles of Association and the Independent Director System, and actively attend the boardmeetings and shareholders' meetings, understand and obtain relevant information before meetings; carefully consider each motion,and actively participate in the discussions and make recommendations. Seriously make independent opinions, and effectively protectthe interests of the Company and shareholders, especially the minority shareholders. Independent directors have no objections onrelevant matters of the Company.The Company further implements the Basic Norms of Enterprise Internal Control and its guidelines, constructs the internal controlsystem in the Company headquarters and major subsidiaries, enhance the Company's management and control level, optimize thework flow, improve the internal control system, identify and control the operational risks. Please see the detailed contents of 2023Internal Control Evaluation Report on www.cninfo.com.cn which is the information disclosure website designated by SZSE.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted company from CSRC?
□ Yes ?No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controllerin ensuring the Company’s assets, personnel, finance, organization and businesses
1. Business: the company has a complete independent research and development, procurement, production and sales systems, themain business does not have horizontal competition with the controlling shareholders. The business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor, personnel and salary management;there is no mixed operation and management with the controlling shareholders. The company’s general manager, vice generalmanager, financial administrator, secretary of the board, and senior executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete, the property relations with the controlling shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling shareholders, the duty andauthority of the company’s shareholders’ meeting, board of directors, board of supervisors and management level are clearly defined,the internal management system can operate independently.
5. Finance: the company has set up an independent financial department, established the independent financial accounting system andfinancial management system, opened the independent bank account, and paid taxes separately according to law.III. Horizontal competition
□ Applicable ? Not applicable
IV. 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 2022 | AGM | 40.58% | May 26, 2023 | May 27, 2023 | (www.cninfo.com.cn) (Notice No.: 2023-026) published on Juchao Website(www.cninfo.com.cn) |
1st extraordinary general meeting of 2023 | Extraordinary general meeting | 39.77% | June 19, 2023 | June 20, 2023 | (Notice No.: 2023-036) published on Juchao Website(www.cninfo.com.cn) |
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting rightsrestore
□ Applicable ?Not applicable
V. Directors, supervisors and senior officers
1. Basic information
Name | Gender | Age | Title | Working status | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) | Reasons for increase or decrease of shares |
Wang Xiaodong | Male | 57 | Chairman | Currently in office | May 28, 2020 | May 19, 2024 | 420,781 | 120,000 | 300,781 | The company bought back and canceled the restricted shares which were granted but not lifted | ||
Kirsch Christoph | Male | 62 | Vice chairman | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Xu Yunfeng | Male | 52 | Vice chairman, GM | Currently in office | May 28, 2020 | May 19, 2024 | 363,000 | 105,000 | 258,000 | The company bought back and canceled the restricted shares which were granted but not lifted | ||
Feng Zhiming | Male | 54 | Director | Currently in office | June 19, 2023 | May 19, 2024 | 65,192 | |||||
Vice GM | Currently in office | June 1, 2023 | May 19, 2024 | |||||||||
Chen Yudong | Male | 62 | Director | Currently in office | March 7, 2012 | May 19, 2024 | 0 | 0 | ||||
Zhao Hong | Female | 42 | Director | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Huang Rui | Male | 39 | Director | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Yu Xiaoli | Female | 60 | Independent Director | Currently in office | June 27, 2018 | May 19, 2024 | 0 | 0 | ||||
Xing Min | Male | 69 | Independent Director | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Feng Kaiyan | Female | 50 | Independent Director | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Pan Xinggao | Male | 52 | Independent Director | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Ma Yuzhou | Male | 49 | Chairman of the Supervisory Committee | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Chen Ran | Male | 51 | Supervisor | Currently in | May 28, 2020 | May 19, 2024 | 1,000 | 1,000 |
office
office | ||||||||||||
Liu Songxue | Female | 38 | Supervisor | Currently in office | May 20, 2021 | May 19, 2024 | 0 | 0 | ||||
Xu Sheng | Male | 49 | Deputy GM | Currently in office | May 28, 2020 | May 19, 2024 | 280,000 | 84,000 | 196,000 | The Company repurchased and canceled the restricted shares which were granted but not lifted | ||
Rong Bin | Male | 48 | Deputy GM | Currently in office | May 28, 2020 | May 19, 2024 | 280,000 | 84,000 | 196,000 | |||
Liu Jinjun | Male | 48 | Deputy GM and Secretary of the Board | Currently in office | May 28, 2020 | May 19, 2024 | 280,000 | 84,000 | 196,000 | |||
Li Gang | Male | 53 | Chief engineer | Currently in office | May 28, 2020 | May 19, 2024 | 280,000 | 84,000 | 196,000 | |||
Ou Jianbin | Male | 57 | Director | Leave office | March 7, 2012 | June 19, 2023 | 290,000 | 84,000 | 206,000 | |||
Executive deputy GM and financial manager | Leave office | March 7, 2012 | March 5, 2024 | |||||||||
Miao Yuming | Male | 60 | Deputy GM | Leave office | April 16, 2003 | May 26, 2023 | 290,000 | 168,000 | 122,000 | |||
Total | -- | -- | -- | -- | 2,484,781 | 0 | 813,000 | 1,736,973 | -- |
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior Executives?Yes ?No
1. On May 27, 2023, the Company disclosed the “Notice on the Retirement and Resignation of Senior Management Personnel”. Mr.Miao Yuming applied to resign from the position of deputy GM of the company as he reached the statutory retirement age.According to relevant regulations, Mr. Miao Yuming’s resignation report took effect from the date of delivery to the company’sboard of directors.
2. The Company held the 17
th meeting of the 10
thsession of the Board of Directors on June 1, 2023, and convened 2023 the firstextraordinary shareholders meeting on June 19, 2023, deliberating and approving the “Proposal on Dismissing the Non- IndependentDirectors” and approving to dismiss the position of Mr. Ou Jianbin as a non independent director.Changes of directors, supervisors and senior executives?Applicable ? Not applicable
Name | Title | Type | Date | Reason |
Ou Jianbin | Director | Leave office | June 19, 2023 | The company's shareholders proposed to dismiss the director's position |
Miao Yuming | Deputy GM | Be dismissed | May 26, 2023 | Retire |
Feng Zhiming | Deputy GM | Be employed | June 1, 2023 | |
Feng Zhiming | Director | Be elected | June 19, 2023 |
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors andsenior executiveMr. Wang Xiaodong, born in November 1966, Chinese nationality and no permanent residence abroad, member of the CPC, auniversity graduate, MBA and full senior engineer. He previously served as the engineer, director and deputy chief engineer intechnology center of the Company, sales director, deputy GM of RBCD, Supervisor of the company, vice chairman and GM of theCompany. Currently serves as Chairman and Party Secretary of the Company.
Mr. Kirsch Christoph, born in October 1961, German nationality, Master’s degree. He previously served as R&D engineer, productmanager and key account sales manager of the diesel system division in Robert Bosch Group, GM of Bosch Automotive DieselSystem Co., Ltd, senior vice president of the commercial vehicle business, Bosch Diesel System Division, the executive vicepresident of production & quality in United Automotive Electronic Systems Co., Ltd(UAES), executive vice president of production& quality, gasoline system division of Bosch Group, the executive vice president of commercial vehicle & off-road business, thesolution business division of RBCD, representing the Bosch Automotive and Intelligent Mobility Asia Pacific Board. Currently heserves as BMS in Robert Bosch Group and the vice chairman of the Company.Mr. Xu Yunfeng, born in November 1971, Chinese nationality and no permanent residence abroad, member of the CPC, a universitygraduate and an engineer, and holds a master's degree. He worked as a test engineer and design team leader in technical center of theCompany, assistant of the oil pump & nozzle research institute of the technical center, deputy director of the product researchinstitute of technical center, the technical sales manager, GM assistant and GM of the Wuxi Weifu Automobile Diesel System Co., ltd,and deputy GM of the Company. He currently serves as Vice Chairman and GM of the Company and deputy secretary of the partycommittee of the Company.Mr. Feng Zhiming, born in November 1969, Chinese nationality, member of the CPC, Master’s degree in Business Administration,and a senior engineer. He has served as the deputy manager of the Power Branch of Wuxi Weifu Group Co., Ltd., the Director andDeputy Chief Engineer of the Engineering Department of Wuxi Weifu Group Co., Ltd., the Director of the Engineering ProcurementDepartment of WFHT, the General Manager of WFMA, the general manager and Chairman of Wuxi Xidong Technology IndustrialPark Co., Ltd., the general manager of Wuxi Hongyuan Electromechanical Technology Co., Ltd., the Office Director of WuxiIndustry Development Group Co., Ltd, and the Chairman and General Manager of Jiangsu Taiji Industrial New Materials Co., Ltd.He is currently the director and deputy general manager of the company.Mr. Chen Yudong, born in September 1961, an America citizenship and a Doctor. He previously served as senior vice president of thegasoline system division of Robert Bosch Group, executive vice president and president of Bosch (China) Investment Ltd. Now heserves as the part-time consultant of China affairs of the BOD of BOSCH and the director of the Company.Ms. Zhao Hong, born in September 1981, Chinese nationality and no permanent residence abroad, member of the CPC, Bachelor’sdegree, an accountant. She worked as an account in Wuxi Tianyi Membrane Technology Application Equipment Factory, the projectauditor of Wuxi Founder Taxation Firm, the deputy director of audit and inspection department, director, deputy secretary ofdiscipline inspection commission, secretary of director bureau and chief of staff in Wuxi Industry Development Group Co., Ltd. Now,she is the director of operations and employee supervisor of Wuxi Industry Development Group Co., Ltd, and the director of theCompany.Mr. Huang Rui, born in December 1984, Chinese nationality and no permanent residence abroad, member of the CPC, Master’sdegree. He worked as the product manager of Shangde Power, senior project manager of Wuxi Merchants Bureau, manager of theErnst & Young Huaming CPA (Shanghai), deputy GM, municipal environment division of Wuxi Guolian Environmental EnergyGroup, the vice president of investment development department, vice president of investment development department II (presidingover the work), vice president of investment banking of Wuxi Industry Development Group Co., Ltd. Now he is the GM ofinvestment banking department of Wuxi Industry Development Group Co., Ltd and the director of the Company.Ms. Yu Xiaoli, born in January 1963, Chinese nationality and no permanent residence abroad, member of the CPC and Ph.D. She hasbeen teaching at Zhejiang University since 1985. She served as an independent director of the sixth, seventh and ninth of the Boardof the Company, and the dean of the engineering branch of Zhejiang University City College. She is currently the professor at theSchool of Energy Engineering of Zhejiang University and the doctoral supervisor, the chairman of the Society of AutomotiveEngineers of Zhejiang, the director of Zhejiang Bozhong Automobile Technology Co., Ltd., the independent director of ZhejiangWanding Precision Technology Co., Ltd (unlisted), the independent director of Xuelong Group Co., Ltd., and independent director ofZhejiang Xinchai Electric Co., Ltd., and the independent director of the Company.Mr. Xing Min, born in January 1954, Chinese nationality and no permanent residence abroad, member of the CPC, Bachelor’s degree,a professor-level senior engineer. He worked as the secretary of the Party Committee of China Heavy Machinery Corporation,secretary of the Party Committee and GM of China Machine Tool Corporation. Now he is the executive vice president and secretary
general of China Internal Combustion Engine Industry Association, the independent director of Changchai Company Limited, thedirector of Anhui Aikelan Environmental Protection Co., Ltd, and the independent director of the Company.Ms. Feng Kaiyan, born in October 1973, Chinese nationality and no permanent residence abroad, member of the CPC, a Bachelor’sdegree, Certified Public Accountant and senior accountant. She worked as the accounting for Wuxi Production Materials Corporationand Wuxi Geological & Mining Information Service Center. Currently, she is the chief accountant of Wuxi Donghua AccountingFirms Co., Ltd, the responsible person of the Sunan Branch, Jiangsu Fuhua Engineering Cost Consulting Co., Ltd, the independentdirector of yuancheng Cable Co., Ltd, the independent director of Kangxin New Material Co., Ltd, the president of Wuxi BankruptcyAdministrator Association and the independent director of the Company.Mr. Pan Xinggao, born in June 1971, Chinese nationality and no permanent residence abroad, a Bachelor’s degree and a lawyer. Heserved as a lawyer of Shandong Jinan Quancheng Laws Firm, a lawyer of Beijing Zhongyin Law Firm and lawyer of BeijingZhonglun Jingtong Laws Firm. Now he is the Partner of Beijing Tongshang Law Firm, the independent director of Huarui TrafficTechnology Co., Ltd and independent director of the Company.Mr. Ma Yuzhou, born in September 1974, Chinese nationality and no permanent residence abroad, member of the CPC, a Mastergraduate and an engineer. He worked as the craftsman in the Company’s assembly branch, assistant secretary of the missioncommittee of the Company, deputy secretary of the Company’s fuel injection branch, deputy director of the Company’s PartyCommittee Work Dept., plunger branch deputy plant manager, head treatment plan manager, director of oil pump branch plant,assembly plant manager, deputy GM of WFTT, deputy GM and GM of the Company’s mechanical system division and director oforganization & personnel dept. of the Company. Now he is the deputy secretary of the Company’s Party Committee and chairman ofthe Supervisory Committee of the Company.Mr. Chen Ran, born in December 1972, Chinese nationality and no permanent residence abroad, member of the CPC, a Bachelor’sdegree, and a senior human resource manager. He once served as deputy director of the company’s management department, deputydirector of the investment and audit department, director of human resources department, deputy director of the party and massdepartment, deputy director of administration department, deputy director of engineering procurement department, director of thecompany’s party and mass department and director of the disciplinary inspection and supervision department. He is currently adirector of the Company’s organization and personnel department and supervisor of the Company.Ms. Liu Songxue, born in July 1985, Chinese nationality and no permanent residence abroad, member of the CPC, a Bachelor’sdegree, and senior engineer. She worked as the product testing engineer and product design engineer in technical center of theCompany. Currently she is the secretary general of the Science & Technology Association of the Company and Supervisor of theCompany.Mr. Xu Sheng, born in March 1974, Chinese nationality and no permanent residence abroad, member of the CPC, graduate degree,holds a master’s degree, and a senior engineer. He once served as secretary of the party committee of the company’s party committeework department, deputy director of the office of the general manager of the company, deputy secretary of the party branch anddeputy factory manager of the company’s injector parts branch, HSE manager of Bosch Automotive Diesel System Co., Ltd., seniormanager of BPS, director of MOE5, and assistant general manager of the company. He is currently the deputy GM of the Company.Mr. Rong Bin, born in December 1975, Chinese nationality and no permanent residence abroad, member of the CPC, holds abachelor's degree, and is an assistant engineer. He joined the Company in July 1998 and worked as vice plant manager of thecompany's plunger branch, deputy manager of the common rail component company, deputy manager and manager of the firstmanufacturing department of the company's mechanical system business department, assistant to the general manager, deputy generalmanager, and general manager of the company's mechanical system business department, and general manager of the automotivediesel system division and general manager of the mechanical system division. He currently serves as the deputy GM of theCompany.Mr. Liu Jinjun, born in September 1975, Chinese nationality and no permanent residence abroad, member of the CPC, holds abachelor’s degree and a master’s degree, and is an engineer. He once served as the manager of the personnel administrationdepartment and technical sales manager of Wuxi Weifu Automotive Diesel System Co., Ltd., the director of the company's humanresources department, supervisor of the seventh and eighth of the Supervisory Committee of the Company, head of the corporate
strategy & new business department and head of market development department of the Company. He is currently the deputy GMand secretary of the Board of the Company.Mr. Li Gang, born in November 1970, Chinese nationality and no permanent residence abroad, member of the public interest Party,holds a bachelor’s degree and a master’s degree, and a full senior engineer. He once served as the product design engineer of thecompany's technology center, the production supervisor of the production department and the technical director of the technical salesdepartment of Wuxi Weifu Automotive Diesel System Co., Ltd., the deputy director of the company's technology center, deputy deanof the company's engineering technology research institute and the director of the technology center, and the standing deputy director(deputy chief engineer) of the company's technology center. He is currently the chief engineer of the Company.Post-holding in shareholder’s unit?Applicable □ Not applicable
Name | Name of shareholding entity | Position in shareholding entity | Start dated of office term | End date of office term | Received remuneration from shareholding entity (Y/N) |
Kirsch Christoph | ROBERT BOSCH GMBH | BMS | April 1, 2023 | Y | |
Chen Yudong | Bosch (China) Investment Ltd. | Part-time consultant of China affairs of BOSCH Group | January 1, 2024 | Y | |
Zhao Hong | Wuxi Industry Development Group Co., Ltd. | Operation director | April 19, 2021 | Y | |
Zhao Hong | Wuxi Industry Development Group Co., Ltd. | Employee supervisor | September 8, 2023 | Y | |
Huang Rui | Wuxi Industry Development Group Co., Ltd. | GM of investment banking department | May 1, 2021 | Y |
Post-holding in other unit?Applicable □ Not applicable
Name | Name of other entities | Position in other entities | Start dated of office term | End date of office term | Received remuneration from other entities (Y/N) |
Yu Xiaoli | Zhejiang University | Professor and doctoral supervisor | 1985-08-01 | Y | |
Yu Xiaoli | Society of Automotive Engineers of Zhejiang | Chairman | 2015-06-01 | N | |
Yu Xiaoli | Zhejiang Bozhong Automobile Technology Co., Ltd | Director | 2008-04-01 | N | |
Yu Xiaoli | Xuelong Group Co., Ltd | Independent director | 2022-09-15 | 2025-09-14 | Y |
Yu Xiaoli | Zhejiang Wanding Precision Technology Co., Ltd | Independent director | 2019-11-01 | Y | |
Yu Xiaoli | Zhejiang Xinchai Co., Ltd | Independent director | 2022-09-22 | Y | |
Xing Min | China Internal Combustion Engine Industry Association | Executive vice president and secretary general | 2008-08-01 | Y | |
Xing Min | Anhui Aikelan Environmental Protection Co., Ltd | Director | 2021-11-22 | 2024-11-21 | Y |
Feng Kaiyan | Wuxi Donghua Accounting Firms Co., Ltd | Chief accountant | 1998-10-01 | Y | |
Feng Kaiyan | Jiangsu Fuhua Engineering Cost Consulting Co., Ltd - Sunan Branch | Responsible person | 2020-07-16 | N | |
Feng Kaiyan | Yuancheng Cable Co., Ltd. | Independent director | 2019-11-22 | Y | |
Feng Kaiyan | Kangxin New Material Co., Ltd | Independent director | 2023-04-20 | 2026-01-03 | Y |
Feng Kaiyan | Wuxi Bankruptcy Administrator Association | President | 2024-01-07 | N |
PanXinggao
Pan Xinggao | Beijing Tongshang Law Firm | Partner | 2007-10-01 | Y | |
Pan Xinggao | Huarui Transportation Technology Co., Ltd | Independent director | 2022-02-26 | Y |
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors andsenior management during the reporting period
□ Applicable ? Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedure: the remuneration committee of the Board shall make proposals according to completion status of themajor annual targets, the implementation of which is subject to submission to and approval by the Board;
2. Determination reference: remuneration of directors, supervisors and senior management who receive remuneration from theCompany is determined based on the Annual Operating Results Assessment Measures of Senior Management and RemunerationManagement Rules of Senior Management as approved at the shareholders’ general meetings. Allowance for independent directors ofthe Company is determined by shareholders’ general meeting which is set at 150,000 yuan per person/year (tax included), and thetraveling expense occurred by them arising from attending the Company’s board meeting, general meetings and relevant activitieswill be reimbursed according to the actual conditions.
3. Actual payment: remuneration of directors, supervisors and senior management who receive remuneration from the Companycomprises of basic annual pay and performance related annual salary. The basic annual pay shall be determined based on specificpositions and paid monthly, while the performance related salary is determined and paid based on satisfaction of the variousperformance indicators since it is directly linked with the economic benefits of the Company. Remuneration of independent directorswill be paid on a quarterly basis.Remuneration of directors, supervisors and senior executives in the reporting period
In ten thousand yuan
Name | Gender | Age | Title | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company (Y/N) |
Wang Xiaodong | Male | 57 | Chairman | Currently in office | 91 | N |
Kirsch Christoph | Male | 62 | Vice chairman | Currently in office | 0 | Y |
Xu Yunfeng | Male | 52 | Vice Chairman,GM | Currently in office | 82 | N |
Feng Zhiming | Male | 54 | Director, vice GM | Currently in office | 32 | N |
Chen Yudong | Male | 62 | Director | Currently in office | 0 | Y |
Zhao Hong | Female | 42 | Director | Currently in office | 0 | Y |
Huang Rui | Male | 39 | Director | Currently in office | 0 | Y |
Yu Xiaoli | Female | 60 | Independent director | Currently in office | 15 | N |
Xing Min | Male | 69 | Independent director | Currently in office | 15 | N |
Feng Kaiyan | Female | 50 | Independent director | Currently in office | 15 | N |
Pan Xinggao | Male | 52 | Independent director | Currently in office | 15 | N |
Ma Yuzhou
Ma Yuzhou | Male | 49 | Chairman of the Supervisory Committee | Currently in office | 63 | N |
Chen Ran | Male | 51 | Supervisor | Currently in office | 57 | N |
Liu Songxue | Female | 38 | Supervisor | Currently in office | 22 | N |
Xu Sheng | Male | 49 | Deputy GM | Currently in office | 63 | N |
Rong Bin | Male | 48 | Deputy GM | Currently in office | 63 | N |
Liu Jinjun | Male | 48 | Deputy GM, Secretary of the Board | Currently in office | 63 | N |
Li Gang | Male | 53 | Deputy GM | Currently in office | 63 | N |
Miao Yuming | Male | 60 | Deputy GM | Leave office | 0 | Y |
Ou Jianbin | Male | 57 | Director, executive deputy GM and financial principle | Leave office | 63 | N |
-- | -- | -- | 722 | -- |
Explanation of other situations
□Applicable ?Not applicable
VI. Responsibility performance of directors during the reporting period
1.Meetings held by BOD during the reporting period
Meeting | Date of meeting | Disclosure date | Meeting resolution |
The 15th meeting of 10th session of the BOD | 2023-02-24 | 2023-02-28 | The Notice of the Resolution of 15th meeting of 10th session of the BOD (Notice No.: 2023-005) published on Juchao Website (www.cninfo.com.cn) |
The 16th meeting of 10th session of the BOD | 2023-04-26 | 2023-04-28 | The Notice of the Resolution of 16th meeting of 10th session of the BOD (Notice No.: 2023-009) published on Juchao Website (www.cninfo.com.cn) |
The 17th meeting of 10th session of the BOD | 2023-06-01 | 2023-06-02 | The Notice of the Resolution of 17th meeting of 10th session of the BOD (Notice No.: 2023-029) published on Juchao Website (www.cninfo.com.cn) |
The 18th meeting of 10th session of the BOD | 2023-08-03 | 2023-08-04 | The Notice of the Resolution of 18th meeting of 10th session of the BOD (Notice No.: 2023-040) published on Juchao Website (www.cninfo.com.cn) |
The 19th meeting of 10th session of the BOD | 2023-08-18 | The Resolution of 19th meeting of 19th session of the BOD (not required for announcement according to relevant regulations) | |
The 20th meeting of 10th session of the BOD | 2023-10-23 | 2023-10-25 | The Notice of the Resolution of 20th meeting of 10th session of the BOD (Notice No.: 2023-044) published on Juchao Website (www.cninfo.com.cn) |
The 21th meeting of 10th session of the BOD | 2023-11-14 | 2023-11-16 | The Notice of the Resolution of 21th meeting of 10th session of the BOD (Notice No.: 2023-051) published on Juchao Website (www.cninfo.com.cn) |
2. Attendance of directors at board meetings and shareholders’ general meetings
Attendance of directors to board meeting and shareholders’ general meeting | |||||||
Director | Times of Board meeting | Times of Presence | Times of attending the Board | Times of entrusted presence | Times of Absence | Absent the Meeting for the second | Times of attend the general |
supposed toattend in thereport period
supposed to attend in the report period | Meeting by communication | time in a row (Y/N) | meeting | ||||
Wang Xiaodong | 7 | 2 | 5 | N | 2 | ||
Kirsch Christoph | 7 | 0 | 7 | N | 2 | ||
Xu Yunfeng | 7 | 2 | 5 | N | 2 | ||
Ou Jianbin | 3 | 1 | 2 | N | 0 | ||
Chen Yudong | 7 | 0 | 7 | N | 2 | ||
Zhao Hong | 7 | 2 | 5 | N | 2 | ||
Huang Rui | 7 | 2 | 5 | N | 2 | ||
Yu Xiaoli | 7 | 1 | 6 | N | 2 | ||
Xing Min | 7 | 1 | 6 | N | 2 | ||
Feng Kaiyan | 7 | 1 | 6 | N | 2 | ||
Pan Xinggao | 7 | 1 | 6 | N | 2 | ||
Feng Zhiming | 4 | 1 | 3 | N | 0 |
Explanation of not attending the board meeting in person for two consecutive times: Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes ? No
No directors come up with objection about Company’s relevant matters in the reporting period
4. Other explanation on responsibility performance of directors
The opinions from directors have been adopted? Yes □ NoDirector’s statement to the Company that a proposal has been or has not been adoptedDuring the reporting period, all the directors of the Company were diligent and conscientious, carried out their work in strictaccordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, as wellas the Articles of Association, Rules of Procedure for the Board of Directors and other systems, and paid close attention to theCompany’s standardized operation and business condition, put forward relevant opinions on the Company’s major governance andoperation decisions according to the actual situation of the Company, form a consensus after full communication and discussion, andsupervise and promote the implementation of the resolutions of the board of directors, ensure scientific, timely and efficient decision-making, and maintain the legitimate rights and interests of the Company and all shareholders.VII. Special committees under the BOD during the reporting period
Committee name | Members | Number of meetings held | Date of meeting | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the objection (if applicable) |
The 10th session of Strategy Committee | Wang Xiaodong, Kirsch Christoph, | 1 | 2023-04-26 | Consideration of the Strategic Vision of the Company’s Future Development | The Strategy Committee verified and deliberated on | N/A | N/A |
Xu YunfengXing MinYu Xiaoli
Xu Yunfeng Xing Min Yu Xiaoli | the matters strictly in terms of the Rules of Work of Strategy Committee of the Board and relevant laws and regulations, relevant proposals are unanimously agreed. | ||||||
The 10th Session of Remuneration Committee | Yu Xiaoli, Feng Kaiyan, Huang Rui | 2 | 2023-04-26 | Consideration of the (1) Proposal Report on Remuneration Assessment for Senior Executives and Payout for year of 2022; (2) Proposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted under 2020 Restricted Stock Incentive Plan | The Remuneration Committee verified and deliberated on the matters strictly in terms of the Rules of Work of Remuneration Committee of the Board and relevant laws and regulations, relevant proposals are unanimously agreed. | N/A | N/A |
2023-10-23 | Consideration of the Proposal on Buying Back and Canceling Part Restricted Stocks and Adjusting Buy-back Prices | N/A | N/A | ||||
The 10th session of Audit Committee | Feng Kaiyan, Pan Xinggao, Zhao Hong | 3 | 2023-04-26 | Consideration of the (1) 2022 Annual Report and its Summary; (2) Proposal on Provision for Impairment; (3) Proposal on Correction of Accounting Errors in the Previous Period; (4) 2022 Financial Final Account Report; (5) the Summary Report on Audit Work for the Year 2022; (6) 2022 Internal Control Evaluation Report; (7) Proposal on Carrying out Bill Pool Business; (8) Proposal on the Estimated Total Amount of Daily Related Party Transactions in 2023; (9) Proposal on the Estimated External Guarantee Amount for 2023; (10) Proposal on Entrusting Wealth Management with Free Idle Funds; (11) Deliberation of the | The Audit Committee verified and deliberated on the matters strictly in terms of the Rules of Work of Audit Committee of the Board and relevant laws and regulations, relevant proposals are unanimously agreed. | N/A | N/A |
Proposal on Hiring AuditInstitution for FinancialReports for the Year 2023;
(12) Deliberation of the
Proposal on Hiring an InternalControl Evaluation AuditInstitution for the Year 2023;
(13). Review of the First
Quarter Report 2023
Proposal on Hiring Audit Institution for Financial Reports for the Year 2023; (12) Deliberation of the Proposal on Hiring an Internal Control Evaluation Audit Institution for the Year 2023; (13). Review of the First Quarter Report 2023 | |||||||
2023-08-18 | Consideration of the Semi-Annual Report of 2023 (full-text) and Summary of Semi-Annual Report 2023 | N/A | N/A | ||||
2023-10-23 | Consideration of the Third Quarter Report of 2023 | N/A | N/A | ||||
The 10th session of Nominating Committee | Pan Xingao,Xing Min, Chen Yudong | 1 | 2023-06-01 | Consideration of the (1) Proposal on the Appointment of Deputy General Managers; (2) Proposal on By-election of Non-independent Directors | The Nominating Committee verified and deliberated on the matters strictly in terms of the Rules of Work of Nominating Committee of the Board and relevant laws and regulations, relevant proposals are unanimously agreed. | N/A | N/A |
VIII. Works of Supervisory Committee
Does the Supervisory Committee discover any risks in the company during its supervisory activities during the reporting period?
□ Yes ? No
The Supervisory Committee has no objections to the supervisory matters during the reporting period.
IX. Particulars of workforce
1.Number of employees, professional composition and education background
The total number of current employees at year end (person) | 2,636 |
The total number of current employees to receive pay (person) | 3,123 |
Retired employee’ s expenses borne by the parent Company and main subsidiaries (person) | 5,759 |
The total number of current employees at year end (person) | 5,759 |
The total number of current employees to receive salaries (person) | 0 |
Professional composition | |
Category of professional composition | Number of professional composition(person) |
Production personnel | 3,348 |
Sales personnel
Sales personnel | 167 |
Technical personnel | 1,455 |
Financial personnel | 92 |
Administrative personnel | 697 |
Total | 5,759 |
Education background | |
Category of education background | Numbers(person) |
Master degree and above | 542 |
Undergraduate | 1,724 |
Junior college | 1,065 |
Technical secondary school | 437 |
High school | 512 |
Other | 1,479 |
Total | 5,759 |
2. Remuneration policy
The company further improves its performance management and salary management system, closely aligns with the company'sstrategy and business plan, fully leverages the guiding and driving role of goals, closely links the total salary with the company'soperating results, and fully leverages incentive effectiveness. Meanwhile, the company further leverages the role of incentive funds,strengthens the promotion and incentive efforts of major innovation and development projects, encourages patent applications, andplays a positive role in promoting the achievement of the company's strategic goals. The company pays social insurance for allemployees and continues to implement employee pension and medical accident commercial insurance to maximize employeemotivation and creativity. Besides, the company has established a long-term service award to encourage employees to serve thecompany for the long term, stabilize the workforce, attract high-quality talents, and provide talent security for the realization of thecompany's strategy.
3.Training plan
The company actively promotes the construction of a strategic talent team, based on the “San Hang Yi Jiang” talent training system,and deeply develops the job competency of employees. According to the requirements of the company's international businessdevelopment, explore and prepare international talent development and training plans, promote the digital transformation of keypositions, provide technical ability enhancement training through online and offline integration, and improve the cultivation ofintelligent high skilled talents based on the “Master Studio”. Strengthen internal knowledge sharing, focus on training effectivenessconversion, comprehensively enhance employee job competency and business technical ability, and help the company upgrade itstalent capabilities.
4. Labor outsourcing
□ Applicable ?Not applicable
X. Profit distribution plan and transfer of capital reserve into share capitalFormulation, implementation and adjustment of profit distribution policy, in particular the cash dividend policy during the reportingperiod
? Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations of Articles of Association.
2. During the reporting period, the Company implemented the profit distribution for year of 2022, based on the shares which excludethe buy-back shares on buy-back account (25,000,000 A-stock) from total share capital 1,002,579,793 shares, distributed 1 yuan (taxincluded) cash dividend for every 10 shares held, without capitalization from capital reserves. The plan was completed in July 2023.The implementation of the Company’s cash dividend policy is in compliance with the provisions of Articles of Association, relevantdecision-making procedures are complete and fully listen to the views of independent directors and small & medium shareholdersand maintain the legitimate rights and interests of small & medium shareholders.
Special explanation on cash dividend policy | |
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): | Y |
Well-defined and clearly dividend standards and proportion (Y/N): | Y |
Completed relevant decision-making process and mechanism (Y/N): | Y |
Independent directors perform duties completely and play a proper role (Y/N): | Y |
If the company does not distribute cash dividends, specific reasons should be disclosed, as well as the measures to be taken next to enhance investor returns: | Not applicable |
Small & medium shareholders have opportunity to express opinions and demands totally and their legal rights are fully protected (Y/N): | Y |
Condition and procedures are compliance and transparent while the cash dividend policy adjusted or changed (Y/N): | Not applicable |
The Company earnings during the reporting period and profit available for distribution to shareholders from parent company ispositive, but no cash dividend distribution plan has been proposed
□ Applicable ?Not applicable
Profit distribution and capitalization of capital reserves during the reporting period?Applicable □Not applicable
Number of bonus shares per 10 shares (Share) | 0 |
Dividend payout per 10 shares (Yuan) (Tax included) | 10.00 |
Equity base of distribution plan (Share) | 977,162,793 |
Cash dividend amount(Yuan) (Tax included) | 977,162,793.00 |
Cash dividend by other ways (share buy-back included) (RMB) | 71,917,549.61 |
Total cash dividends(Include other ways) (Yuan) | 1,049,080,342.61 |
Profits available for distribution (RMB) | 12,253,874,983.95 |
Proportion of the total cash dividend (other ways included) in total profit distribution | 100% |
Cash dividend situation this time | |
Other | |
Detail explanation on profit distribution or capitalization from capital reserves | |
The company's 2023 annual profit distribution plan: based on the 977,162,793 shares which exclude the buy-back shares on buy-back account (25,000,000 A-stock) from total share capital 1,002,162,793 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 10.00 yuan (tax included) cash dividend for every 10 shares held, no bonus shares, without capitalization from capital reserves. The remaining undistributed profit is carried forward to the next year. The total amount of cash dividend to be paid is 977,162,793 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 profit distribution plan will be submitted for consideration at the 2023Annual General Meeting.
independent opinions and agreed to the above proposal. The profit distribution plan will be submitted for consideration at the 2023Annual General Meeting.
XI. Implementation of the company’s stock incentive scheme, employee stock ownership planor other employee incentives
?Applicable □Not applicable
1. Stock incentive
On October 12, 2020, the Company held the 17th meeting of the 9th session of BOD to deliberated and approved relevant proposal asthe “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 dated December8, 2020.On October 22, 2021, the Company held the 5th meeting of 10th session of the BOD to deliberate and approve relevant proposals asAdjustment 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 Proposal onthe Achievement of the Conditions for the Release of Restricted Shares in the First Restricted Period of the 2020 Restricted StockIncentive Plan, the Proposal on Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and theProposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020. It agreed toapply for the release of 7,632,000 restricted stocks granted to 581 incentive recipients and decided to buy-back and cancel 430,000restricted shares held by 23 incentive recipients that had been granted but not yet unlocked. On December 16, 2022, the sharesreleased from this restricted sale were formally available for circulation. As of February 16, 2023, the Company completed the buy-back and cancellation procedures for the aforementioned 430,000 shares at Shenzhen branch of China Securities Depository andClearing Co., Ltd. After this cancellation, the number of incentive recipients granted for the first time by the Company's restrictedstock incentive plan in 2020 was adjusted from 590 to 568, holding 11,187,000 restricted stock in total.On April 26, 2023, the company held the 16th meeting of the 10th session of Board of Directors and approved the Proposal on Buy-Back and Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back and cancel atotal of 5,593,500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions for liftingrestrictions. 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 568incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan, holding a total of 5,593,500.00shares 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 to buyback and cancel a total of 417,000 restricted stocks that have been granted to 33 incentive recipients but do not meet the conditionsfor lifting restrictions. As of December 19, 2023, the company has completed the buy-back and cancellation procedures for theabove-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. After thiscancellation, there were 535 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan,holding a total of 5,176,500.00 shares of restricted stock.Equity incentive received by directors and senior executives? Applicable □ Not applicable
In share
Name | Title | Number of stock options held at beginning of the year | Number of new stock options granted during the reporting period | Number of stock exercisable during the reporting period | Number of stock exercised during the reporting period | Exercise price of the stock exercised during the reporting period(RMB/Share) | Number of stock options held at end of the period | Market value at end of the Period (RMB/Share) | Number of restricted shares held at beginning of the period | Number of shares unlocked during the period | Number of new restricted shares granted during the reporting period | Grant price of restricted shares (RMB/Share) | Number of restricted shares held at end of the period |
Wang Xiaodong | Chairman | 15.07 | 240,000 | 120,000 | 15.48 | 120,000 | |||||||
Xu Yunfeng | Vice Chairman, GM | 15.07 | 210,000 | 105,000 | 15.48 | 105,000 | |||||||
Xu Sheng | Deputy GM | 15.07 | 168,000 | 84,000 | 15.48 | 84,000 | |||||||
Rong Bin | Deputy GM | 15.07 | 168,000 | 84,000 | 15.48 | 84,000 | |||||||
Liu Jinjun | Deputy GM, Secretary of the Board | 15.07 | 168,000 | 84,000 | 15.48 | 84,000 | |||||||
Li Gang | Chief engineer | 15.07 | 168,000 | 84,000 | 15.48 | 84,000 | |||||||
Ou Jianbin(Leave office) | Director, executive vice president and head of finance | 15.07 | 168,000 | 84,000 | 15.48 | 84,000 | |||||||
Miao Yuming(Leave office) | Deputy GM | 15.07 | 168,000 | 168,000 | 15.48 | 0 | |||||||
Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 1,458,000 | 813,000 | 0 | -- | 645,000 |
Assessment mechanism and incentive condition of the senior executives
Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law, Articles of Association,and the Annual Operating Results Assessment Measures of Senior Management and Remuneration Management Rules of SeniorManagement as approved at the general meetings. Assessment of operating results of senior management comprises of annualoperating results assessment and term-of-service operating results assessment. Assessment on results and procedure was combined,and assessment results were linked to incentives and punishment. With respect to annual operating results review, the remunerationcommittee of the Board made comprehensive assessment on satisfaction of the annual operating targets and determined the annualremuneration, incentives or punishment for senior management based on their review results (which was implemented according toremuneration management rules of senior management), based on the major annual operating targets set by the Board under requiredprocedures and methods through establishment of scientific performance indicators and assessment system and combination ofscoring in terms of quantity and review comments. During the reporting period, the Company made appropriate assessment on itssenior management under the performance indicator and assessment system, the results of which had been reflected in the annualperformance related remuneration.
2. Implementation of employee stock ownership plan
□Applicable ?Not applicable
3. Other employee incentives
□Applicable ?Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
This year, the Company further strictly followed the Basic Norms for Enterprise Internal Control and its supporting guidelines,starting from comprehensively strengthening the internal control of the Company and its subsidiaries, combined with changes inbusiness scale, business scope, internal control measures and methods, and conducted in-depth self-examination and self correction.The Company comprehensively sorted out, optimized, and improved the systems and processes of new business/project management,authorization management, supplier and customer management, contract and seal management, fund management, and related partytransaction management in various business areas. The Company invited external risk control experts to conduct specialized riskcontrol training for relevant personnel, further enhanced risk control management capabilities, increased the Company’s riskassessment and control efforts at all levels, and continuously promoted the construction of the Company's risk control system andrisk warning mechanism.
2. Details of major defects in internal control identified during the reporting period
□Yes ?No
XIII. Management and controls on subsidiaries during the reporting period
Name | Integration plans | Integration progress | Problems encountered in integration | Countermeasures taken | Resolution progress | Follow-up resolution plan |
Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
Disclosure date of full internal control assessment report | 2024-04-16 | ||
Disclosure index of full internal control assessment report | For more details, please refer to the Self-assessment Report of Internal Control for 2023 published on in Juchao Website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange | ||
The proportion of total assets of units included in the evaluation scope to the total assets of the company's consolidated financial statements | 100% | ||
The proportion of operating income of units included in the evaluation scope to the operating income of the company's consolidated financial statements | 100% | ||
Defects recognition criteria | |||
Category | Financial Reports | Non-financial Reports | |
Qualitative criteria | See details in (II) Basis for assessment of internal controls and defect recognition criteria of internal controls of III Assessment of Internal Controls in 2023 Annual Internal Control Self-Assessment Report disclosed on www.cninfo.com.cn dated April 16, 2024. | See details in (II) Basis for assessment of internal controls and defect recognition criteria of internal controls of III Assessment of Internal Controls in 2023 Annual Internal Control Self-Assessment Report disclosed on www.cninfo.com.cn dated April 16, 2024. | |
Quantitative standard | See details in (II) Basis for assessment of internal controls and defect recognition criteria of internal controls of III Assessment of Internal Controls in 2023 Annual Internal Control Self-Assessment Report disclosed on www.cninfo.com.cn dated April 16, 2024. | See details in (II) Basis for assessment of internal controls and defect recognition criteria of internal controls of III Assessment of Internal Controls in 2023 Annual Internal Control Self-Assessment Report disclosed on www.cninfo.com.cn dated April 16, 2024. | |
Number of senior defects in financial reports | 0 | ||
Number of senior defects in non-financial reports | 0 | ||
Number of important defects in financial reports | 0 | ||
Number of important defects in non-financial reports | 0 |
2. Audit report of internal control
?Applicable □ Not applicable
Deliberations in Internal Control Audit Report | |
Audit institute considers that: according to relevant regulations and Basic Internal Control Standards for Enterprise, Weifu High-Technology Group Co., Ltd. in all major aspects, keeps an efficiency of internal control of financial report dated December 31, 2023. | |
Disclosure details of audit report of internal control | Disclosed |
Disclosure date of audit report of internal control (full-text) | 2024-04-16 |
Index of audit report of internal control (full-text) | For more details, please refer to the Audit Report of Internal Control for year of 2023 published on Juchao website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange |
Opinion type of auditing report of IC | Standard unqualified opinions |
Whether the non-financial report had major defects (Y/N) | N |
Carried out modified opinion for internal control audit report from CPA
□Yes ?No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
? Yes □ No
XV. Rectification of self-examination problems in special governance actions in listedcompanyNil
Section V. Environmental and Social ResponsibilityI. Major environmental issuesThe listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department?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 at alllevels during production and operation, strictly comply with related national environmental protection laws and regulations such asEnvironmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of the People's Republic ofChina, Air Pollution Prevention and Control Law of the People's Republic of China, Water Pollution Prevention and Control Law ofthe People's Republic of China, Solid Waste Pollution Prevention and Control Law of the People's Republic of China, NoisePollution Prevention and Control Law of the People's Republic of China, Energy Conservation Law of the People's Republic ofChina, Cleaner Production Promotion Law of the People's Republic of China, Environmental Protection Tax Law of the People'sRepublic of China, Measures for the Management of Hazardous Waste Transfer, Regulations on Environmental Protection ofConstruction Projects, Regulations on the Administration of Emission Permits as well as related local environmental protectionmanagement rules and regulations, regularly collect newly promulgated laws and regulations on ecological and environmentalprotection at all levels, and perform compliance evaluation transformation by combining with production reality to ensurecompliance 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 Comprehensive SewageDischarge, Water Quality Standards for Sewage Discharge into Urban Sewers, Comprehensive Emission Standards for AirPollutants, and Pollution Control Standards for Hazardous Waste Storage, and guaranteed stable operation, in an effort to minimizethe 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 with environmentalimpact reports (forms), and have been approved by the local ecological and environmental authorities, and all have obtained emissionpermits (registrations) in accordance with the requirements of laws and regulations, and the emission permits (registrations) to expirein 2023 have been changed or renewed in a timely manner, thereby effectively achieving licensed emission and legal and compliantemission. 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; DischargePermit of Wuxi Weifu Chang’an Co., Ltd., valid period: from December 31, 2020 to December 30, 2023.Industry emission standards and the specific situation of pollutant emissions involved in production and business activities
Company/Subsidiary | Main pollutants and specific pollutants | Name of main pollutants and specific pollutants | Emission mode | Number of emission outlets | Distribution of emission outlets | Emission concentration/strength | Standard for emission of pollutants implemented | Total emissions | Total emissions approved | Excessive emission |
WFHT | Water pollutants | Chemical oxygen demand, ammonia nitrogen, | After being treated by the company's sewage treatment | 1 | WFMS sewage discharge outlet | Chemical oxygen demand 48mg/l, ammonia nitrogen 3.24mg/l, total phosphorus | Water Quality Standards for Sewage Discharged | Chemical oxygen demand 23.948 tons, | Chemical oxygen demand 78 tons, | NA |
totalnitrogen,totalphosphorus,petroleum
total nitrogen, total phosphorus, petroleum | station, it is connected to the municipal sewage pipeline network for discharge | 0.144mg/l, total nitrogen 7.32mg/l, petroleum 0.47mg/l | into Urban Sewers (GB/T31962-2015) | ammonia nitrogen 3.342 tons, total phosphorus 0.053 tons, total nitrogen 4.135 tons, petroleum 0.259 tons | ammonia nitrogen 7.8 tons, total phosphorus 0.52 tons, total nitrogen 10.4 tons, petroleum 1.95 tons | |||||
WFHT | Water pollutants | Chemical oxygen demand, ammonia nitrogen, petroleum, total nitrogen, petroleum | After being treated by the company's sewage treatment station, it is connected to the municipal sewage pipeline network for discharge | 1 | WFAC sewage discharge outlet | Chemical oxygen demand 86mg/l, ammonia nitrogen 9.64mg/l, total nitrogen 32.8mg/l, total phosphorus 2.84mg/l, petroleum 1mg/l | Water Quality Standards for Sewage Discharged into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand 4.515 tons, ammonia nitrogen 0.506 tons, total nitrogen 1.722 tons, 0.149 tons of total phosphorus, 0.053 tons of petroleum | 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 | NA |
WFHT | Air pollutant | Non methane total hydrocarbons | Organized emissions of exhaust gas after being adsorbed by an oil mist processor and secondary activated carbon | 19 | 5 machining workshops, 10 heat treatment workshops, and 4 assembly workshops | 2.6mg/m3 | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 2.265 tons | 2.523 tons | NA |
WFHT | Air pollutant | Non methane total hydrocarbons | Organized emissions of exhaust gas after being adsorbed by an | 4 | 4 in 101 workshop | 4.73mg/m3 5.24mg/m3 5.53mg/m3 5.7mg/m3 | Comprehensive Emission Standards for Air | 0.5088 tons | 1.5529 tons | NA |
oil mistprocessor andsecondaryactivatedcarbon
oil mist processor and secondary activated carbon | Pollutants (GB16297-1996) | |||||||||
WFHT | Air pollutant | Non methane total hydrocarbons | Organized emissions of exhaust gas after being adsorbed by an oil mist processor and secondary activated carbon | 2 | 2 in workshop 103 | 2.51mg/m3 2.2mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.2713 tons | NA | NA |
WFHT | Air pollutant | Non methane total hydrocarbons | Organized emissions of exhaust gas after being adsorbed by an oil mist processor and secondary activated carbon | 1 | 1 in workshop 104 | 3.26mg/m3 | Comprehensive Emission Standards for Air Pollutants (GB16297-1996) | 0.1878 tons | NA | NA |
WFHT | Air pollutant | Ammonia | Organized emissions after ammonia spray tower adsorption+secondary activated carbon adsorption | 2 | 1 heat treatment workshop and 1 sewage treatment station | 0.94mg/m3 | Emission Standard for Odor Pollutants (GB14554-93) | 0.048 tons | 0.071 tons | NA |
WFHT | Air pollutant | Particulate matter | Organized emissions after bag dust removal | 2 | 2 heat treatment workshops | 1.2mg/m3 1.3mg/m3 | Integrated Emission Standards for Air Pollutants (GB16297-1996) | 0.0085 tons | 0.048 tons | NA |
WFHT | Solid waste | Hazardous waste such as waste oil, waste emulsion, cleaning waste liquid, grinding wheel ash, sewage pre-treatment sludge, oily filter | Entrust a legally qualified unit for disposal | Not applicable | Not applicable | Not applicable | Not applicable | 931.7 tons | 3958.2 tons | NA |
cartridges, etc
cartridges, etc | ||||||||||
WFCA | Water pollutants | Chemical oxygen demand, ammonia nitrogen, total phosphorus, total nitrogen, suspended solids | After being treated by the company's sewage treatment station, it is connected to the municipal sewage pipeline network for discharge | 1 | Sewage discharge outlet | Chemical oxygen demand 86mg/L, suspended solids 15mg/L, ammonia nitrogen 5.64mg/L, total phosphorus 0.07mg/L, total nitrogen 6.01mg/L | Water Quality Standards for Sewage Discharged into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand is 6.708 tons, suspended solids are 1.17 tons, ammonia nitrogen is 0.439 tons, total phosphorus is 0.0055 tons, and total nitrogen is 0.468 tons | Chemical oxygen demand 35.018 tons, suspended solids 26.263 tons, ammonia nitrogen 2.626 tons, total phosphorus 0.438 tons, and total nitrogen 3.502 tons | NA |
WFJN | Water pollutants | Chemical oxygen demand, ammonia nitrogen | After being treated by the company's sewage treatment station, it is connected to the municipal sewage pipeline network for discharge | 1 | Sewage discharge outlet | Chemical oxygen demand 93mg/L, ammonia nitrogen 17mg/L, total phosphorus 0.38 mg/L, petroleum 1 mg/L | Water Quality Standards for Sewage Discharged into Urban Sewers (GB/T31962-2015) | Chemical oxygen demand 7.3 tons, ammonia nitrogen 1.3 tons, total phosphorus 0.03 tons, petroleum 0.008 tons | Not applicable | NA |
WFJN | Solid waste | Hazardous waste such as waste oil, oily sludge, grinding wheel ash, empty drums, activated carbon, filter cartridges, etc | Entrust qualified units for disposal | Not applicable | Not applicable | Not applicable | Not applicable | 403 tons | Not applicable | NA |
Treatment of pollutantsThe company mainly focuses on mechanical processing and generates oil mist exhaust gas (non methane total hydrocarbons). The oilmist 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 is dischargedthrough four 15m-high exhaust funnels; The oil mist exhaust gas generated in WFAC103 workshop is treated by an efficient oil mistpurifier and a secondary activated carbon adsorption device, and then discharged through two 15m-high exhaust funnels. The oil mistexhaust gas generated in WFAC104 workshop is treated by an efficient oil mist purifier and a secondary activated carbon adsorptiondevice, and discharged through one 15 meter high exhaust pipe; The oil mist exhaust gas generated in the WFMS machiningworkshop is treated by a high-efficiency oil mist purifier and a secondary activated carbon adsorption device, and then dischargedthrough four 15m-high exhaust funnels; The cleaning exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mistpurifier and a secondary activated carbon adsorption device, and then discharged through two 15m-high exhaust funnels; Quenchingexhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier and discharged through three 15m-highexhaust funnels; The test exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier and dischargedthrough a 15m-high exhaust funnels; The shot blasting exhaust gas (particulate matter) is treated by a bag filter and dischargedthrough two 15m-high exhaust funnels; The waste gas (ammonia, methanol, non methane total hydrocarbons) generated by thecarbon nitrogen co infiltration process is treated by an acid spray tower and a secondary activated carbon adsorption device, and thendischarged through a 15 meter high exhaust pipe; The carburized exhaust gas (non methane total hydrocarbons) is treated by a firecurtain combustion and secondary activated carbon adsorption device, and then discharged through six 15m-high exhaust funnels;After being treated by a secondary activated carbon adsorption device, the waste gas from drying and solidifying adhesive (nonmethane total hydrocarbons, tin and its compounds) is discharged through two 15m-high exhaust funnels; The waste gas (ammonia,hydrogen sulfide) from the sewage station is adsorbed and treated by dry chemical filtration media, and discharged through a 15meter high exhaust pipe. The remaining waste gas is discharged unorganized in the workshop. The company has built acomprehensive sewage treatment station with a designed processing capacity of 1600m3/day in the WFMS plant area. After theproduction wastewater is regulated by an air flotation tank, it is discharged into the biochemical system of the sewage station togetherwith the domestic wastewater treated by septic tanks and oil separators for treatment. The treated wastewater is connected to themunicipal pipe network for standard discharge; One production wastewater treatment station with a designed processing capacity of120m3/day and one domestic wastewater treatment station with a designed processing capacity of 200m3/day have been constructedin the WFAC factory area. After being regulated by an air flotation tank and treated by biochemical treatment, the productionwastewater is discharged together with the treated domestic wastewater into the sewage discharge outlet. The treated wastewater isconnected to the municipal pipeline network for standard discharge.WFCA has built a sewage treatment station with a designed treatment capacity of about 300m3/d in the factory. After being adjustedby the air flotation tank, the production wastewater is discharged into the biochemical system of the sewage station for treatmenttogether with the domestic sewage treated by septic tanks and grease traps, and the treated sewage is discharged via the municipalpipe 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 flotation tank,the industrial wastewater will be discharged into the biochemical system of the sewage station together with the domestic sewagetreated by septic tanks and grease traps for treatment, and the treated sewage will be discharged via the municipal pipe networkaccording to the standard.Emergency plan for environmental emergenciesThe Company and its subsidiaries have compiled the Emergency Plan for Sudden Environmental Events in accordance with thestandards and specifications, combined with the actual production situation of the Company, and have filed it after the revieworganized by relevant local departments, and revised it on schedule. During the reporting period, the Company carried outcomprehensive emergency plan drills and special emergency plan drills according to the annual emergency drill plan, andsummarized and evaluated the drills and improved the corresponding emergency measures.
Environmental self-monitoring programDuring the reporting period, the Company and its subsidiaries have compiled the Environmental Self-monitoring Plan for 2023 inaccordance with relevant management requirements and norms, and passed the review and filing by local ecological andenvironmental authorities. According to the requirements of the scheme, a qualified third party agency has been entrusted to monitorthe company's waste gas, waste water and noise on a regular basis. All monitoring data have been disclosed on national and localself-monitoring platforms in accordance with the Measures for Self-monitoring and Information Disclosure of State Key MonitoringEnterprises (Trial) and supervised by the public. The monitoring data are in line with national and local standards, and there is noexcessive discharge found.The investment in environmental governance and protection and the relevant situation of paying environmental protectiontaxThe Company and its subsidiaries have set up complete environmental protection treatment facilities in accordance with therequirements of the EIA reply and the current environmental management requirements, and reached the discharge standard of all airpollutants and water pollutants. The Company has built compliant storage facilities to store solid wastes and entrusted qualified unitsfor disposal, running at the leading level in the industry in terms of investment in environmental protection. During the reportingperiod, the Company and its subsidiaries have paid environmental protection taxes on a quarterly basis in accordance with therequirements of laws and regulations.Measures to reduce carbon emissions during the reporting period and effects?Applicable □Not applicableSaving resources and reducing consumption is an important part of the Company's core values. On the one hand, it is beneficial toimprove the efficiency of the Company, but also to improve the utilization rate of resources in the whole society. Therefore, theCompany continues to improve the utilization of resources through technological innovation, vigorously promote energyconservation and emission reduction, and strive to achieve green production. The Company's existing main business is focused onautomobile energy saving and emission reduction. At present, all the Company's main products have met the emission regulationsbeing implemented by the country, and the Company is actively storing products that meet the requirements of more stringentemission regulations. At the same time, in recent years, the Company has accelerated the promotion of green hydrogen energy,intelligent electric and other new energy business layout and development, contributing to the realization of carbon peak carbonneutral goal.Administrative penalties for environmental problems during the reporting period
Company or subsidiary name | Reason for punishment | Violation situation | Punishment results | The impact on the production and operation of listed companies | The company’s rectification measures |
NA | NA | NA | NA | NA | NA |
Other information about the environment that shall be disclosedDuring the reporting period, the Company and its subsidiaries have regularly filled in the implementation reports (quarterly reportsand annual reports) of pollutant discharge permits in accordance with national and local laws and regulations. All air pollutants andwater pollutants have been released in accordance with the standards, and hazardous wastes have been disposed of by qualified units,and the transfer slip system has been strictly implemented.OtherNot applicableII. Social responsibility
For details, please refer to the Social Responsibility Report for Year of 2023 released by the Company on the same day on JuchaoWebsite (www.cninfo.com.cn)
III. Consolidating and expanding the achievements of poverty alleviation and ruralrevitalization
During the reporting period, the Company has actively fulfilled its social responsibilities, demonstrated its commitment to the times,established a favorable corporate image and made positive contributions to the promotion of sustainable and high-quality economicand social development. In the initiative of “Ten Thousand Enterprises Linked with Ten Thousand Villages to Jointly Take the Roadof Revitalization”, the Company paired up with Maohua Village in Taihua Town, Yixing. The Company has integrated theprocurement of agricultural products for employee welfare and team-building activities for employees with support for thedevelopment and revitalization of Maohua Village, and has engaged in joint building and exchange activities with Maohua Village,with three batches of agricultural products from Maohua Village purchased during the year.
Section VI. Important Matters
I. Implementation of undertakings
1. Undertakings that the actual controller, shareholders, related party, buyers and the Company havefulfilled 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 period
2. For assets or projects of the Company which keeps profitable forecast during the reporting period,description reasons for reaching the original profitable forecast
□ Applicable ?Not applicable
II. Occupation of the non-operational funds of the listed company by controlling shareholdersand 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. Statement on the latest “modified audit report” by BOD
? Applicable □ Not applicableOn April 26, 2023, Gongzheng Tianye Certified Public Accountants (Special General Partnership) issued an unqualified audit reporton the company’s financial report for the year 2022, with emphasis on certain matters.
(1) Emphasize the matters involved in the paragraph
As shown in XVIII-7. Major transaction and events influencing investor’ decision, the security organs have launched a criminalinvestigation on the case that WFTR was defrauded by contracts in its "platform trade" business. At present, the case is in the stage oftransferring for review and prosecution, and the outcome of the case is uncertain in the future.
(2) Explanation of changes and disposal of the matters involved
From January 1, 2023 to the disclosure date of this report, RMB199,235,800 of other receivables received was received. In addition,the company is also fully cooperating with the public security organs in the recovery of stolen goods and damages. However, as thematter is in the stage of transferring for review and prosecution by the public security organs, the company will fulfill its disclosureobligations in a timely manner according to the progress of subsequent case investigations.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Qualified Opinion” that issued by CPA? Applicable ? Not applicableFor details, refer to the announcement disclosed by the company in Juchao Website (www.cninfo.com.cn) on the same day.
VI. Explanation of the changes in accounting polices, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year? Applicable □ Not applicableOn November 30, 2022, the Ministry of Finance issued Interpretation No. 16 of the Enterprise Accounting Standards(CK[2022]No.31), which stipulated that “deferred income tax related to assets and liabilities arising from individual transactionsshall not be subject to the accounting treatment of initial recognition exemption”. This regulation shall come into effect on January 1,2023. Our company has made corresponding changes to the accounting policy changes in accordance with the above requirements.Please refer to “Section X. Financial Report” and “V-36 (1) Significant Accounting Policy Changes” in this report for details.VII. Comparing with last year’s financial report, explain changes in the scope of consolidatedstatement
□Applicable ? Not applicable
There are no changes in the scope of consolidated statement of the Company in the reporting period.VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm | Gongzheng Tianye Certified Public Accountants (Special General Partnership) |
Remuneration for domestic accounting firm | 193 |
Continuous life of auditing service for domestic accounting firm | 32 |
Name of domestic CPA | Gu Zhi, Zhang Qianqian |
Continuous life of auditing service for domestic accounting firm | Gu Zhi (3 year), Zhang Qianqian (4 year) |
Re-appointed accounting firms in this reporting period
□Yes ?No
Appointment of internal control auditing accounting firm, financial consultant or sponsor? Applicable □ Not applicableAfter deliberation at the 2022 Annual General Meeting of Shareholders of the Company, the Company employed Gongzheng Tianyeas the Company’s internal control auditing accounting firm in 2023. The Company paid the internal control auditing accounting firm250,000 yuan during the reporting period.IX. Particular about delisting after annual report disclosed
□ Applicable ? Not applicable
X. Bankruptcy reorganization
□ Applicable ?Not applicable
No bankruptcy reorganization for the Company in the reporting periodXI. Major litigation and arbitration
□Applicable ? Not applicable
No significant litigation or arbitration matters for the company in the reporting period.
XII. Penalty and rectification? Applicable □ Not applicable
Name | Type | Reason | Investigation and punishment types | Conclusion | Disclosure date | Disclosure resource |
WFHT | Other | 1. Inaccurate disclosure of financial information 2. Failure to fulfill related party transaction review procedures and disclosure obligations in accordance with regulations 3. No disclosure of 2022 performance forecast | China Securities Regulatory Commission takes administrative regulatory measures | Jiangsu Securities Regulatory Bureau issued a warning letter (Administrative regulatory measures) and recorded in the integrity file of the securities and futures market | March 28, 2024 | The Company disclosed on the Juchao Information Network (www.cninfo.com.cn) “Announcement on Receiving a Warning Letter from Jiangsu Securities Regulatory Bureau” (No.2024-005) |
Wang Xiaodong | Director | Failure to diligently fulfill responsibilities | ||||
Xun Yunfeng | Director | |||||
Ou Jianbin | Other | |||||
WFHT | Other | Failure to disclose the 2022 performance forecast in accordance with regulations in time | Disciplined by the stock exchange | Circulate a notice of criticism | March 27, 2024 | Official website of SZSE “Decision on Giving Notice of Criticism and Punishment to Wuxi Weifu High tech Group Co., Ltd. and relative objects” |
Wang Xiaodong | Director | Failure to fulfill duties and fulfill obligations of honesty and diligence | ||||
Xun Yunfeng | Director | |||||
Ou Jianbin | Other |
Explanation of rectification situation:
? Applicable □ Not applicableAfter receiving the warning letter from Jiangsu Securities Regulatory Bureau, the Company attaches great importance to it, earnestlylearns from its lessons, strengthens the study of relevant laws and regulations, normative documents, strengthens informationdisclosure management, improves the level of standardized operation, and prevents such incidents from happening again. TheCompany and relevant personnel have submitted a written rectification report to the Jiangsu Securities Regulatory Bureau as required.
XIII. Integrity of the Company, its controlling shareholders and actual controllers
□ Applicable ? Not applicable
XIV. 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 | 4,166.98 | 0.46% | 5,600 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch Company | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 26,696.50 | 2.97% | 38,000 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
WFEC | Joint venture of WFLD | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 95,532.57 | 10.61% | 105,100 | N | According to the contract | Market price | 2023-04-28, 2023-11-16 | Announcement No.: 2023-017、2023-053 |
Robert Bosch Company | Second largest shareholder of the Company | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 19,940.45 | 2.22% | 30,000 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
Changchun Xuya | Joint venture of | Procurement of | Procurement of | Fair market | Market price | 0 | 0.00% | 150 | N | According to the | Market price | 2023-04-28 | Announcement No.: |
ng
ng | WFLD | goods and services | goods and services | pricing | contract | 2023-017 | |||||||
Guokai Metal | Holding subsidiary of Wuxi Industry Group | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 1,586.70 | 0.18% | 0 | Y | According to the contract | Market price | ||
Lezhuo Bowei | Associated enterprise | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 0 | 0.00% | 100 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
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 | 5.06 | 0.00% | 0 | Y | According to the contract | Market price | ||
HLA | Holding company of Wuxi Industry Development Group Co., Ltd. | Procurement of goods and services | Procurement of goods and services | Fair market pricing | Market price | 51.53 | 0.01% | 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 | 53.22 | 0.00% | 500 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
RBCD | Associated enterprise, controlling subsidiary | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 167,373.43 | 15.09% | 300,000 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
ofRobertBoschCompany
of Robert Bosch Company | |||||||||||||
WFEC | Joint venture of WFLD | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 729.04 | 0.07% | 900 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
Robert Bosch Company | Second largest shareholder of the Company | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 186,872.80 | 16.85% | 219,305 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
Changchun Xuyang | Joint venture of WFLD | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 101.12 | 0.01% | 500 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
Lezhuo Bowei | Associated enterprise | Sales of goods and services | Sales of goods and services | Fair market pricing | Market price | 969.54 | 0.09% | 2,000 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
WFPM | Associated enterprise | Others | Procurement of fixed assets | Fair market pricing | Market price | 18.60 | 200 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch Company | Others | Payable technical service fees, etc | Fair market pricing | Market price | 0 | 50 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
RBCD | Associated enterprise, controlling subsidiary of Rober | Others | Payment of technical commission fees, etc | Fair market pricing | Market price | 0 | 150 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
tBoschCompany
t Bosch Company | |||||||||||||
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch Company | Others | Procurement of fixed assets | Fair market pricing | Market price | 28.32 | 450 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch Company | Others | Provide technical services, etc | Fair market pricing | Market price | 0 | 250 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch Company | Others | Receivable lease fees | Fair market pricing | Market price | 23.40 | 0 | Y | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Robert Bosch Company | Second largest shareholder of the Company | Others | Payment of technical commission fees, etc | Fair market pricing | Market price | 251.75 | 300 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Robert Bosch Company | Second largest shareholder of the Company | Others | Procurement of fixed assets | Fair market pricing | Market price | 2,033.73 | 1,000 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 |
RobertBoschCompany
Robert Bosch Company | Second largest shareholder of the Company | Others | Receivable lease fees | Fair market pricing | Market price | 0 | 250 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Robert Bosch Company | Second largest shareholder of the Company | Others | Receivable kinetic energy fees | Fair market pricing | Market price | 0 | 80 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Robert Bosch Company | Second largest shareholder of the Company | Others | Provide technical services | Fair market pricing | Market price | 260.14 | 400 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Robert Bosch Company | Second largest shareholder of the Company | Others | Payable technical service fees | Fair market pricing | Market price | 1,006.67 | 0 | Y | According to the contract | Market price | |||
WFEC | Joint venture of WFLD | Others | Payable technical service fees | Fair market pricing | Market price | 3.34 | 20 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
WFEC | Joint venture of WFLD | Others | Provide technical services | Fair market pricing | Market price | 0 | 30 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
WFEC | Joint venture of WFLD | Others | Receivable lease fees | Fair market pricing | Market price | 200.66 | 250 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
WFEC | Joint venture of WFLD | Others | Payable kinetic | Fair market pricin | Market price | 121.76 | 150 | N | According to the contra | Market price | 2023-04-28 | Announcement No.: 2023- |
energy fees
energy fees | g | ct | 017 | ||||||||||
WFEC | Joint venture of WFLD | Others | Sales of fixed asset | Fair market pricing | Market price | 25.3 | 0 | Y | According to the contract | Market price | |||
Lezhuo Bowei | Associated enterprise | Others | Receivable lease fees | Fair market pricing | Market price | 271.59 | 250 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Lezhuo Bowei | Associated enterprise | Others | Receivable kinetic energy fees | Fair market pricing | Market price | 0.00 | 80 | N | According to the contract | Market price | 2023-04-28 | Announcement No.: 2023-017 | |
Lezhuo Bowei | Associated enterprise | Others | Provide technical services | Fair market pricing | Market price | 11.03 | 0 | Y | 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 | 207.41 | 0 | Y | According to the contract | Market price | |||
Wuxi Industry Group | The parent company of the WFHT | Others | Provide technical services | Fair market pricing | Market price | 16.06 | 0 | Y | According to the contract | Market price | |||
Wuxi IoT | Holding company of Wuxi Industry Group | Others | Procurement of fixed assets | Fair market pricing | Market price | 60.22 | 0 | Y | According to the contract | Market price | |||
Total | -- | -- | 508,618.92 | -- | 706,065 | -- | -- | -- | -- | -- | |||
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) | Deliberated and approved by 2022 general meeting of shareholders of the Company, it is estimated that the total amount of daily related party transactions for the year 2023 will be 7,060.65 million yuan, and the actual total amount of daily related party transactions during the reporting period is 5,086,189,200yuan. By category, it is expected that the amount of goods and services purchased from related parties in 2023 will not exceed 1,789.50 million yuan, and the actual amount incurred during the reporting period is 1,479,797,900 yuan; 2. It is expected that the sales of goods and services to related parties in 2023 will not exceed 5,232.05 million yuan, and the actual amount incurred during the |
reporting period is 3,560,991,500 yuan; 3. It is expected that other related party transactions withrelated parties in 2023 will not exceed 39.10 million yuan, and the actual amount incurred during thereporting period is 45,399,800 yuan.
reporting period is 3,560,991,500 yuan; 3. It is expected that other related party transactions with related parties in 2023 will not exceed 39.10 million yuan, and the actual amount incurred during the reporting period is 45,399,800 yuan. | |
Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
2. Related party transactions of assets or acquisition and sold
□ Applicable ? Not applicable
No related party transactions of assets 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 and its related parties | Company controlled by the older brother of the former director/senior management of the company | "platform trade" business | N | -212,548.78 | -212,548.78 | ||||
Hebei Jinda | Companies controlled by Hebei Machinery | 201,522.43 | 5,675.38 | 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
Total | 241,515.19 | 5,675.38 | 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 losses 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, HebeiLanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on the business essence of "platform trade" business, WFTRlisted the difference between the "purchase payment" paid by WFTR to Hebei Jinda, Hebei Deshuang, Hebei Lanpai and HebeiMianzhuo based on "platform trade" business and the "sales payment" received from Hebei Machinery 2,358,398,084.78 yuan asother receivables, including: The "sales payment" received from Hebei Machinery is presented as a negative number. As ofDecember 31, 2023, the Company has made a bad debt provision of 1,448,358,922.04 yuan for the balance of other receivables; Thebad debt provision 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 in WFTR’s"platform trade" business portfolio 1,644,068,327.93 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 applicableThere were no other significant related party transactions during the reporting period of the company.
XV. 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. Significant guarantee
? 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 | N | N | 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) | N | N |
VHIO | 2023-04-28 | 55,000 | 2023-07-13 | 7,784 | Joint liability guarantee | N | N | Three years from the date of receipt of the guarantee by the Italian tax bureau | N | N |
Wuxi Weifu Autosmart Seating System Co., Ltd. | 2023-04-28 | 4,000 | 2023-08-26 | 462 | Joint liability guarantee | N | N | 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 | N | N |
VHIO | 2023-04- | 55,00 | 2023-11- | 5,309 | Joint | N | N | Six months from the | N | N |
28 | 0 | 16 | liability guarantee | maturity date of each guaranteed debt, but no later than June 30, 2028 | |||||
Approved total guaranteed amount towards the subsidiaries within the reporting period (B1) | 84,000 | Total actual amount occurred towards subsidiaries within the reporting period (B2) | 13,555 | ||||||
Approved total guaranteed amount towards the subsidiaries at the year end B3) | 85,000 | Total actual guarantee balance towards subsidiaries at the year end (B4) | 14,555 | ||||||
Guarantee of subsidiaries to subsidiaries | |||||||||
Total amount of the company’s guarantee(total of the top three) | |||||||||
Approved total amount guaranteed within the reporting period (A1+B1+C1) | 84,000 | Total actual guaranteed amount occurred within the reporting period (A2+B2+C2) | 13,555 | ||||||
Approved total amount guaranteed at the year end (A3+B3+C3) | 85,000 | Actual total guarantee balance at the year end (A4+B4+C4) | 14,555 | ||||||
Proportion of actual total guaranteed amount (A4+B4+C4) to net assets | 0.75% | ||||||||
Including: | |||||||||
Explanation of situations where there is guarantee liability or evidence indicating the possibility of joint and several repayment liability for unexpired guarantee contracts during the reporting period (if any) | (Not involved) | ||||||||
Explanation of providing guarantees to external parties in violation of prescribed procedures (if any) | (Not involved) |
Specific description for using the guarantee by complex method: Nil
3. Trusted cash asset management
(1) Trust financing
? Applicable □ Not applicableTrust financing during the reporting period
In ten thousand yuan
Type | Capital sources | Amount occurred | Outstanding balance | Overdue amount | Amount with impairment accrued for the overdue financial products which has not been recovered |
Bank financial products | Own funds | 78,450 | 64,000 | 0 | 0 |
Securities financial products | Own funds | 77,000 | 42,000 | 0 | 0 |
Trust financial products | Own funds | 126,550 | 42,054 | 0 | 0 |
Other type | Own funds | 114,231 | 92,712 | 0 | 0 |
Total | 396,231 | 240,766 | 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 gains/losses in period | Actual collected gains/losses 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 | 87,800 | Own fund | 2023-01-10 | 2024-04-01 | Structured deposits | Reference annual rate of return by the contract | 2.60%-2.91% | 853.42 | 275.87 | Reference annual rate of return by the contract | Yes | Yes | 2023-04-28(Announcement No.:2023-018) | |
Bank | Bank | Non-guaranteed floating income | 75,670 | Own fund | 2023-02-02 | 2023-12-29 | Cash management products | Reference annual rate of return by the contract | 2.00%-2.5% | 165.68 | 183.83 | Reference annual rate of return by the contract | Yes | Yes | 2023-04-28(Announcement No.:2023-018) | |
Securities | Securities | Non-guaranteed floating income | 25,000 | Own fund | 2023-01-06 | 2025-02-10 | Asset Management Plan, beneficiary Certificate | Reference annual rate of return by the contract | 9.00%-15.9% | 7,219.38 | 4,019.43 | Reference annual rate of return by the contract | Yes | Yes | 2023-04-28(Announcement No.:2023-018) | |
Trust | Trust | Non-guaranteed floating income | 40,000 | Own fund | 2023-02-09 | 2023-03-31 | Collective trust plan | Reference annual rate of return by the contract | 3.40%-3.70% | 107.4 | 4,374.13 | Reference annual rate of return by the contract | Yes | Yes | 2023-04-28(Announcement No.:2023-018) | |
Other | Other | Non- | O | Pri | Referen | 2.60%- | 608.44 | Referen | Yes | Yes | 2023- |
guaranteedfloatingincome
guaranteed floating income | wn fund | vate equity fund products | ce annual rate of return by the contract | 2.91% | ce annual rate of return by the contract | 04-28(Announcement No.:2023-018) | |||||||||
Total | 228,470 | -- | -- | -- | -- | -- | -- | 8,345.88 | 9,461.7 | -- | -- | -- | -- |
It is expected that the principal of entrusted financial management fails to recover or there are other situations leading to impairmentin entrusted financial management
□ Applicable ? Not applicable
(2) Entrusted loans
□ Applicable ? Not applicable
The company had no entrusted loans in the reporting period.
4. Other significant contract
□ Applicable ? Not applicable
The company had no other significant contract in the reporting period.
XVI. Explanation on other material matters?Applicable ? Not applicableThere are no other significant matters that need to be explained during the reporting period of the company.
XVII. Material matters of subsidiary of the Company? Applicable ? Not applicableOn April 13, 2023, the company disclosed the Announcement on the Receipt of Case Registration Notice and Major Risk Warningfrom Public Security Organs by the Company’s wholly-owned Subsidiary WFTR. At present, the case is in the the stage oftransferring for review and prosecution.
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the change | Change during the year(+/-)) | After the change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Other | Subtotal | Amount | Proportion | |
I. Restricted shares | 12,021,836.00 | 1.19% | -6,370,606.00 | -6,370,606.00 | 5,651,230.00 | 0.56% | |||
1. State-owned shares | |||||||||
2. State-owned legal person’s shares | |||||||||
3. Other domestic shares | 12,021,836.00 | 1.19% | -6,370,606.00 | -6,370,606.00 | 5,651,230.00 | 0.56% | |||
Including: Domestic legal person’s shares | |||||||||
Domestic natural person’s shares | 12,021,836.00 | 1.19% | -6,370,606.00 | -6,370,606.00 | 5,651,230.00 | 0.56% | |||
4. Foreign shares | |||||||||
Including: Foreign legal person’s shares | |||||||||
Foreign natural person’s shares | |||||||||
II. Unrestricted shares | 996,581,457.00 | 98.81% | -69,894.00 | -69,894.00 | 996,511,563.00 | 99.44% | |||
1. RMB ordinary shares | 824,201,457.00 | 81.72% | -69,894.00 | -69,894.00 | 824,131,563.00 | 82.24% | |||
2. Domestically listed foreign shares | 172,380,000.00 | 17.09% | 172,380,000.00 | 17.20% | |||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Total shares | 1,008,603,293.00 | 100.00% | -6,440,500.00 | -6,440,500.00 | 1,002,162,793.00 | 100.00% |
Reasons for share changed?Applicable □Not applicable
1. During the reporting period, the Company bought back and canceled a total of 6,440,500 shares of restricted stock that had beengranted but not unlocked in three installments, resulting in changes in stocks subjects to limited sales conditions;
2. During the reporting period, some directors, supervisors, and senior executives of the company underwent adjustments, resulting inchanges in the lock in shares of senior executives, leading to changes in stocks subject to limited and unlimited sales conditions.Approval status of share changes?Applicable □Not applicable
1. On December 7, 2022, the Company held the 14
th meeting of the 10
thsession of the Board of Directors, deliberated and approvedthe Proposal on Buy-back and Cancellation of 2020 Partially Restricted Stocks that Have Been Granted but Not Unlocked. It wasagreed to buy back and cancel 430,000 shares of restricted stocks held by 23 incentive recipients that have been granted but not yet
unlocked. As of February 16, 2023, the company has completed the repurchase and cancellation procedures for the above-mentionedshares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2. On April 26, 2023, the Company held the 16
th meeting of the 10
thsession of Board of Directors and approved the Proposal onBuy-back and Cancellation of Partial Restricted Stocks under 2020 Restricted Stock Incentive Plan. It was agreed 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 buy-back and cancellation procedures for the above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
3. On October 23, 2023, the Company held the 20
th
meeting of the 10
thsession of the Board of Directors and approved the Proposalon Repurchase and Cancellation of Partial Restricted Stocks and Adjustment of Buy-back Prices. It agreed to buy-back and cancel417,000 shares of restricted stocks held by 33 incentive recipients that have been granted but not yet unlocked. As of December 18,2023, the company has completed the buy-back and cancellation procedures for the above-mentioned shares at the Shenzhen branchof China Securities Depository and Clearing Corporation Limited.
4. On May 27, 2023, the Company disclosed a notice on the retirement and resignation of senior management personnel. Mr. MiaoYuming applied to resign from the position of deputy GM of the company due to reaching the statutory retirement age. According torelevant regulations, the resignation report took effect from the date of delivery to the company's board of directors.
5. On June 1, 2023, the Company held the 17
th
meeting of the 10
thBoard of Directors and approved the Proposal on Appointment ofDeputy General Manager and Proposal on the by-election of non-independent directors. It was agreed to appoint Mr. Feng Zhimingas the deputy GM of the company and to elect him as the non-independent director of the 10
th
session of the Board of Directors. OnJune 19, 2023, the company held its first extraordinary general meeting of shareholders, deliberated and approved the Proposal on theBy-election of Non-independent Directors.Ownership transfer of share changed
□Applicable ?Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and the reporting period
□ Applicable ? Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable ? Not applicable
2. Changes of lock-up stocks
?Applicable □Not applicable
In Share
Shareholders | Opening shares restricted | Restricted shares increased in the Period | Shares released in Period | Ending shares restricted | Restricted reasons | Date for released |
Wang Xiaodong | 315,586 | 120,000 | 195,586 | Lock-up shares held by senior executives and Restricted Stock Incentive Plan for year of 2020 | June 16, 2023 | |
Xu Yunfeng | 272,250 | 105,000 | 167,250 | Lock-up shares held by senior executives and Restricted Stock Incentive Plan for year of 2020 | June 16, 2023 | |
Feng Zhiming | 48,894 | 48,894 | Lock-up shares held by senior executives | NA | ||
Ou Jianbin | 217,500 | 84,000 | 133,500 | Lock-up shares held by senior executives and Restricted Stock | June 16, 2023 |
Incentive Plan for year of 2020
Incentive Plan for year of 2020 | ||||||
Miao Yuming | 217,500 | 21,000 | 168,000 | 70,500 | Lock-up shares held by senior executives | June 16, 2023 December 18, 2023 |
Rong bin | 210,000 | 84,000 | 126,000 | Lock-up shares held by senior executives and Restricted Stock Incentive Plan for year of 2020 | June 16, 2023 | |
Liu Jinjun | 210,000 | 84,000 | 126,000 | Lock-up shares held by senior executives and Restricted Stock Incentive Plan for year of 2020 | June 16, 2023 | |
Li Gang | 210,000 | 84,000 | 126,000 | Lock-up shares held by senior executives and Restricted Stock Incentive Plan for year of 2020 | June 16, 2023 | |
Xu Sheng | 210,000 | 84,000 | 126,000 | Lock-up shares held by senior executives and 2020 Restricted Stock Incentive Plan | June 16, 2023 | |
Middle management | 10,159,000 | 5,627,500 | 4,531,500 | Restricted Stock Incentive Plan for the year 2020 | February 16, 2023 June 16, 2023 December 18, 2023 | |
Total | 12,021,836 | 69,894 | 6,440,500 | 5,651,230 | -- |
Note: In the aforesaid table, shares released in this reporting period refer to the number of granted but not releasedfrom restricted sales which were bought back and canceled by the Company.II. Securities issuance and listing
1. Security offering (without preferred stock) in the Reporting Period
□ Applicable ? Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
? Applicable □ Not applicableDuring the reporting period, the Company has repurchased and cancelled 6,440,500 shares of 2020 restricted stock that have beengranted but not unlocked. Total share capital of the Company comes to 1,002,162,793 shares from 1,008,603,293 shares.
3. Current internal staff shares
□ Applicable ? Not applicable
III. Particulars about shareholders and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders in reporting period-end | 65,078 | Total common stock shareholders at end of last month | 64,523 | Total preference shareholders with voting rights recovered at end of reporting | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (refer to Note 8) | 0 |
beforeannualreportdisclosed
before annual report disclosed | period (refer to Note 8) | |||||||
Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Number of lock-up stocks held | Amount of un-lock up stock held | Information of shares pledged, tagged or frozen | |
State of share | Amount | |||||||
Wuxi Industry Development Group Co., Ltd. | State-owned corporate | 20.36% | 204,059,398 | 0 | 0 | 204,059,398 | Not applicable | 0 |
ROBERT BOSCH GMBH | Foreign corporate | 14.25% | 142,841,400 | 0 | 0 | 142,841,400 | Not applicable | 0 |
Hong Kong Securities Clearing Company | Foreign corporate | 1.77% | 17,702,321 | -1,960,917 | 0 | 17,702,321 | Not applicable | 0 |
NSSF-413 | Other | 1.02% | 10,230,000 | 120,000 | 0 | 10,230,000 | Not applicable | 0 |
Basic Pension Insurance Fund- 1003 | Other | 0.76% | 7,641,693 | 3,117,337 | 0 | 7,641,693 | Not applicable | 0 |
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | Foreign corporate | 0.72% | 7,210,386 | 347,000 | 0 | 7,210,386 | Not applicable | 0 |
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign corporate | 0.70% | 7,053,913 | -6,952,402 | 0 | 7,053,913 | Not applicable | 0 |
Guolian An Fund - China Pacific Life Insurance Co., Ltd. - Dividend Insurance - Guolian An Fund - China Pacific Life Stock Relative Yield (Dividend) Single Asset Management Plan | Other | 0.69% | 6,887,979 | 3,885,265 | 0 | 6,887,979 | Not applicable | 0 |
Tianan Life Insurance Co., Ltd. - Traditional Products | Other | 0.52% | 5,257,824 | 5,257,824 | 0 | 5,257,824 | Not applicable | 0 |
Xie Zuogang | Domestic natural person | 0.51% | 5,132,967 | 0 | 0 | 5,132,967 | Not applicable | 0 |
Strategy investor or general legal person becoming the top 10 shareholders by placing new shares (if applicable) | N/A | |||||||
Explanation on associated relationship 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 | N/A |
delegate/entrusted voting rightsand abstention from voting rights.
delegate/entrusted voting rights and abstention from voting rights. | |||||
Special note on the repurchase account among the top 10 shareholders (refer to Note 10) | As of Dec. 31, 2023, 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 accordance with relevant requirement, they are not included in the top 10 shareholders of the Company. | ||||
Particular about top ten shareholders with un-lock up stocks held | |||||
Shareholders’ name | Amount of un-lock up stocks 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 GMBH | 142,841,400 | RMB common shares | 115,260,600 | ||
Domestically listed foreign shares | 27,580,800 | ||||
Hong Kong Securities Clearing Company | 17,702,321 | RMB common shares | 17,702,321 | ||
NSSF-413 | 10,230,000 | RMB common shares | 10,230,000 | ||
Basic Pension Insurance Fund- 1003 | 7,641,693 | RMB common shares | 7,641,693 | ||
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | 7,210,386 | Domestically listed foreign shares | 7,210,386 | ||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | 7,053,913 | Domestically listed foreign shares | 7,053,913 | ||
Guolian An Fund - China Pacific Life Insurance Co., Ltd. - Dividend Insurance - Guolian An Fund - China Pacific Life Stock Relative Yield (Dividend) Single Asset Management Plan | 6,887,979 | RMB common shares | 6,887,979 | ||
Tianan Life Insurance Co., Ltd. - Traditional Products | 5,257,824 | RMB common shares | 5,257,824 | ||
Xie Zuogang | 5,132,967 | Domestically listed foreign shares | 5,132,967 | ||
Expiation on associated relationship or consistent actors within the top 10 un-lock up shareholders and between top 10 un-lock up shareholders and top 10 shareholders | Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd. , the first lagest 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) (refer to note 4) | NA |
The top 10 shareholders participating in the lending of shares through refinancing business
□Applicable ? Not applicable
Changes in top 10 shareholders compared to last reporting period?Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared to last period | |||
Full name of shareholders | New/Exiting shareholder in current period | At the end of the period, the number of shares lent through refinancing and not yet repaid | The number of shares held in the ordinary account and credit account of shareholders at the end of the period, as well as the shares lent through refinancing |
and not yet repaid
and not yet repaid | ||||||
Total quantity | Ratio in total shares | Total quantity | Ratio in total shares | |||
Guolian An Fund - China Pacific Life Insurance Co., Ltd. - Dividend Insurance - Guolian An Fund - China Pacific Life Stock Relative Yield (Dividend) Single Asset Management Plan | New shareholder | 0 | 0.00% | 0 | 0.00% | |
Tianan Life Insurance Co., Ltd. - Traditional Products | New shareholder | 0 | 0.00% | 0 | 0.00% | |
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Yingzhi Fund | Exiting shareholder | 0 | 0.00% | 0 | 0.00% | |
Fei Guohua | Exiting shareholder | 0 | 0.00% | 0 | 0.00% |
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-backagreement dealing in reporting period
□ Yes ? No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have nobuy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holdingType of controlling shareholders: legal person
Controlling shareholders | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
Wuxi Industry Development Group Co., Ltd. | Yao Zhiyong | 1995-10-05 | 913202001360026543 | External investment with own funds; housing rental services; self-operation and acting as an agent for the import & export of various commodities and technologies (except for commodities and technologies that restricted or prohibited for import & export by the State), domestic trading (restricted and prohibited projects by the State excluded) |
Equity of other domestic/oversea listed company controlled by the controlling shareholder as well as stock-joint in report period | 1. The majority shareholder of the Company, Wuxi Industry Group, is the controlling shareholder of Wuxi Taiji Industry Corporation Limited (stock code: 600667) and hold 30.42% stakes of the latter. 2. The majority shareholder of the Company, Wuxi Industry Group, directly holds 15.65% stakes of Wuxi New Hongtai Electrical Technology Co., Ltd. (Stock Code: 603016), and indirectly holds 12.26% stakes of Wuxi New Hongtai Electrical Technology Co., Ltd. (Stock Code: 603016) through Wuxi Guosheng Asset Management Co., Ltd actually controlled by it. |
Changes of controlling shareholders in reporting period
□ Applicable ? Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller and person acting in concert of the Company
Nature of actual controller: local state-owned assets managementType of actual controller: legal person
Name of actual controlling shareholders | Legal person/person in charge of the unit | Date of foundation | Organization code | Main operation business |
The State-owned Assets Supervision & Administration Commission of Wuxi Municipality of Jiangsu Province | Zhang Jianchun | ~ | State-owned Assets management | |
Equity of domestic/oversea listed company control by actual controller in the report period | Not applicable |
Changes of actual controller in the reporting period
□ Applicable ? Not applicable
No changes of actual controllers for the Company in the reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
Actual controller controlling the Company by entrust or other assets management
□ Applicable ? Not applicable
4.The total number of shares pledged by controlling shareholders or the first majority shareholder and itspersons acting in concert accounts for 80% of the shares held by them
□ Applicable ? Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
? Applicable □ Not applicable
Wuxi State-owned Assets Supervision &
Administration Commission of State
CouncilWuxi Guofa Capital Operation
Co., Ltd.
Wuxi Guofa Capital Operation
Co., Ltd.
Department of Finance of
Jiangsu provinceWuxi Industry Development Group Co., Ltd.
Wuxi Industry Development Group Co., Ltd.
35.97%
35.97%
59.62%
59.62% | 4.41% |
100%
100%
20.36%
20.36%
Weifu High-Technology Group Co., Ltd.
Corporateshareholders
Corporate shareholders | Legal person/person in charge of unit | Establishment date | Registered capital | Main business or management activity |
ROBERT BOSCH GMBH | Bettina Holzwarth, Nora Kristin Klug | 1886-11-15 | 1.2 billion euros | Development, manufacture and distribution of products, technologies, systems, solutions and service performance, especially in mobile, electrical engineering, electronics, mechanical engineering, mechanics, metals and other materials, medicine, logistics, communications and information technology, including solutions based on data, and related fields. The Company’s goal is to further perform regionally based and business-related services. The Company may directly or indirectly enter into various business transactions to achieve this goal. In order to achieve the goal, the Company can establish, acquire and participate in business activities in any form permitted by law, or carry out business activities through them and organize under unified management. The Company may restrict some of the activities described in paragraph 1 above or hold and manage their participating interests. |
6. Restriction on shares reduction for controlling shareholders, actual controllers, restructuring side andother undertakings entities
□ Applicable ? Not applicable
IV. The specific implementation of shares buy-back during the reporting periodImplementation progress of shares buy-back? Applicable ? Not applicable
Disclosure time of the plan | Number of shares buy-back (shares) | Proportion to total share capital | Proposed buy-back amount (ten thousand yuan) | Proposed buy-back period | Share buy-back purpose | Repurchased quantity (shares) | The proportion of repurchased shares to the underlying stocks involved in the equity incentive plan (if any) |
April 19, 2022 | Not higher than 25,000,000 and not lower than 12,500,000 shares | Not higher than 2.48% and lower than 1.24% | Not exceeding RMB 725 million (inclusive) and not less than RMB 362.5 million (inclusive) | From 2022-04-15 to 2023-04-14 | Intended for implementing employee stock ownership plans or equity incentive plans | 25,000,000 |
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable ? Not applicabl
Section VIII. Preferred Stock
□ Applicable ? Not applicable
The Company had no preferred stock in the the reporting period.
Section IX. Corporate Bonds
□ Applicable ? Not applicable
Section X. Financial ReportI. Audit report
Type of audit opinion | Unqualified opinion with highlighted paragraphs |
Signing date of audit report | April 15, 2024 |
Name of audit institute | Gongzheng Tianye Certified Public Accountants (Special General Partnership) |
Serial of Auditing Report | Su Gong W【2024】No. A366 |
Name of CPA | Gu Zhi, Zhang Qianqian |
Auditor’s Report
Su Gong W【2024】No. A366To the Shareholders of Weifu High-Technology Group Co., Ltd.:
1. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co., Ltd. (hereinafterreferred to as WFHT), including the consolidated and parent Company’s balance sheet of 31 December 2023 andprofit statement, and cash flow statement, and statement on changes of shareholders’ equity for the year ended,and notes to the financial statements for the year ended.In our opinion, the Company’s financial statements have been prepared in accordance with the EnterprisesAccounting Standards and Enterprises Accounting System, and they fairly present the financial status of theCompany and of its parent company as of 31 December 2023 and its operation results and cash flows for the yearended.
2. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with theCertified Public Accountants of China’s Code of Ethics for Professional Accountants, and we have fulfilled ourother ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
3. Highlighted paragraphs
We remind users of financial statements to pay attention: As described in Note XVIII-7 "Major transaction andevents influencing investor’s decision", WFHT’s Wholly-owned subsidiary WFTR's "platform trade" businesscontract fraud is in the stage of transferring for review and prosecution, there is still uncertainty about the outcomeof the case in the future.This paragraph does not affect the published audit opinion.
4. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters.The key audit issues identified in our audit are as follows:
(1) Revenue recognition
1) Matter description
As described in Note V-31 “Revenue” and Note VII-47 “Operating income and cost” carried in the financialstatement, WFHT achieved an operation revenue of CNY 11.093 billion for year of 2023. As one of the biggestsource of profits for WFHT, operating revenue has a significant effect on the general financial statement, in whichthere are certain of inherent risks existed for the reason that the WFHT management (the management) manipulatethe timing of recognition so as to achieve specific objectives or anticipations. Therefore, we will take the Revenuerecognition as the key auditing matter.
2) The solution to the matter in auditing
(1) Understand the key internal controls related to revenue recognition, evaluate the design of these controls,determine whether they are implemented, and test the operational effectiveness of the relevant internal controls;
(2) Review sales contracts to understand main contract terms or conditions and evaluate the appropriateness ofrevenue recognition methods;
(3) Combining with status and data of the industry where WFHT is located, the Company should make ajudgment on the rationality of fluctuation of the revenue composition;
(4) The Company should carry out the procedure of account receivable and revenue letter of confirmation, andmake a judgment on the rationality of the timing of revenue recognition;
(5) Combining with the procedure of letter of confirmation, the Company should make a random inspection onsales contracts or orders, delivery lists, logistics bills, customs declaration, sales invoices, signing-off sheet andother documents related to revenue to verify the authenticity of revenue;
(6) Referring to the recorded revenue before and after the Balance Sheet Date, the Company should select somesamples and check out the supportive documents such as delivery lists, customs declaration and receipt forms tomake a judgment on whether the income has been recorded at the appropriate accounting period.
(2) Provision for expected credit losses of WFTR's "platform trade" business portfolio in other receivables
1) Matter description
As described in Note XVIII-7 "Major transaction and events influencing investor’s decision", As of December 31,2023, the book balance of other receivables formed by WFTR due to "platform trade" contract fraud was CNY
2.5423 billion, and an expected credit loss of CNY 1.6441 billion has been provisioned. The management hasmade a comprehensive judgment based on information from relevant authorized departments, the recoverableamount of the "platform trade" business portfolio debt has not undergone significant changes compared to the endof the previous year, and there is no need for further provision or significant reversal of its expected credit losses.Due to the significant accounting estimates and judgments made by management in relation to the recoverableamount of claims in the "platform trade" business portfolio, which is significant to the financial statements, we
have identified the provision for expected credit losses in the "platform transaction" business portfolio in otherreceivables as a key audit matter.
2) The solution to the matter in auditing
(1) Obtain the accounting estimation method and results of the management's provision of expected credit lossesfor the debt portfolio of the "platform trade" business, asking the sources of significant judgments made by themanagement regarding the recoverability amount of the debt portfolio of the "platform trade" business, compareand analyze the changes in the basis of the recoverability amount of the debt portfolio of the "platform trade"business compared to the end of the previous year, and evaluate its rationality;
(2) Conduct interviews to authorized departments based on the sources of estimates made by management, verifythe authenticity and reliability of the sources, and verify the changes in the basis for the recoverable amountcompared to the end of the previous year and the reasons for such changes;
(3) Based on the information obtained from interviews to the related authorized departments, conduct interviewsto the main "customers" and "suppliers" of the "platform trade" business to evaluate the authenticity of relevantevidence;
(4) Re execute the calculation program based on the recoverable amount of debt in the "platform trade" businessportfolio and compare it with the estimated results of management, further judgment on whether themanagement's conclusion regarding the expected credit loss of the "platform trade" business portfolio debt doesnot require further provision or significant reversal is reasonable.
(5) Check whether information related to "platform trade" business has been appropriately presented and disclosedin the financial statements.
5. Other information
The management of WFHT is responsible for other information which includes the information covered in theCompany’s 2023 annual report excluding the financial statement and our audit report.Our audit opinions on the financial statements do not cover other information, and we do not issue any form ofauthentication conclusions on other information.In combination with our audit of the financial statements, it is our responsibility to read other information and, inthe process, consider whether there is material inconsistency or material misstatement between the otherinformation and the financial statements or what we learned during the audit.Based on the work we have carried out, if we determine that there is a material misstatement of other information,we should report that fact and in this regard we have no matters to report.
6. Responsibilities of management and those charged with governance for the financial statementsThe management is responsible for the preparation of the financial statements in accordance with the AccountingStandards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of theinternal control necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing matters related to going concern (if applicable) and using the going
concern assumption unless the management either intends to liquidate the Company or to cease operations, or hasno realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
7. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures inthe financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are basedon the information obtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express audit opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.We also provide the governance with a statement of our compliance with the ethical requirements relating to ourindependence and communicate with the governance on all relationships and other matters that may reasonably be
considered to affect our independence, as well we the relevant precautions (if applicable).From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in the auditor’s report because of the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.Jiangsu Gongzheng Tianye CPA Chinese CPA: Gu Zhi(Special General Partnership) (Engagement partner)Wuxi China Chinese CPA: Zhang Qianqian
15 April, 2024
II. Financial StatementStatement in Financial Notes are carried in RMB
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co., Ltd.
Dec. 31, 2023
In RMB
Item | Dec. 31, 2023 | Jan. 1, 2023 |
Current assets: | ||
Monetary funds | 2,274,771,699.14 | 2,389,551,930.76 |
Settlement provisions | ||
Capital lent | ||
Trading financial assets | 2,391,487,144.96 | 2,718,820,654.87 |
Derivative financial assets | ||
Note receivable | 144,976,174.84 | 135,559,024.27 |
Account receivable | 3,857,539,958.20 | 3,127,490,177.25 |
Receivable financing | 1,661,749,949.46 | 1,918,368,845.21 |
Accounts paid in advance | 76,202,271.16 | 94,323,853.87 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 919,684,126.81 | 1,264,507,456.47 |
Including: Interest receivable | ||
Dividend receivable | 147,000,000.00 | |
Buying back the sale of financial assets | ||
Inventories | 2,068,533,030.94 | 2,283,119,656.27 |
Contract assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 325,909,383.11 | 430,547,201.24 |
Total current assets | 13,720,853,738.62 | 14,362,288,800.21 |
Non-current assets: | ||
Loans and payments on behalf | ||
Debt investment | ||
Other debt investment | ||
Long-term account receivable |
Long-term equity investment | 5,947,633,507.07 | 6,282,818,108.96 |
Investment in other equity instrument | 677,790,690.00 | 677,790,690.00 |
Other non-current financial assets | 804,350,120.06 | 1,326,608,914.00 |
Investment real estate | 46,926,716.49 | 49,296,869.73 |
Fixed assets | 3,969,574,102.87 | 3,769,984,185.94 |
Construction in progress | 564,605,931.90 | 509,105,587.49 |
Productive biological asset | ||
Oil and gas asset | ||
Right-of-use assets | 48,832,472.85 | 41,865,100.38 |
Intangible assets | 484,834,882.53 | 487,627,987.92 |
Expense on research and development | ||
Goodwill | 122,316,819.20 | 237,682,375.72 |
Long-term expenses to be apportioned | 24,714,632.10 | 28,586,235.84 |
Deferred income tax asset | 311,912,955.07 | 275,627,772.45 |
Other non-current asset | 1,356,741,223.05 | 479,630,436.37 |
Total non-current asset | 14,360,234,053.19 | 14,166,624,264.80 |
Total assets | 28,081,087,791.81 | 28,528,913,065.01 |
Current liabilities: | ||
Short-term loans | 838,889,557.51 | 3,604,376,527.82 |
Loan from central bank | ||
Capital borrowed | ||
Trading financial liability | ||
Derivative financial liability | 747,115.75 | |
Note payable | 1,759,062,642.60 | 1,411,089,606.00 |
Account payable | 3,668,850,423.29 | 3,454,601,023.60 |
Accounts received in advance | 2,911,439.65 | 3,633,878.33 |
Contractual liability | 77,686,881.24 | 94,850,083.23 |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 334,810,352.56 | 317,434,386.24 |
Taxes payable | 56,581,082.49 | 54,586,315.53 |
Other account payable | 108,893,486.63 | 198,990,948.23 |
Including: Interest payable | ||
Dividend payable | ||
Commission charge and commission payable | ||
Reinsurance payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | 38,084,321.10 | 14,285,348.90 |
Other current liabilities | 257,139,908.60 | 211,763,779.77 |
Total current liabilities | 7,142,910,095.67 | 9,366,359,013.40 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | 299,800,000.00 | 238,000,000.00 |
Bonds payable | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | 37,733,196.51 | 31,589,277.20 |
Long-term account payable | 28,035,082.11 | 30,785,082.11 |
Long-term wages payable | 129,844,482.80 | 154,093,044.28 |
Accrued liability | 38,016,428.52 | 10,106,268.87 |
Deferred income | 188,773,622.29 | 223,123,978.78 |
Deferred income tax liabilities | 37,752,122.87 | 40,149,550.99 |
Other non-current liabilities | ||
Total non-current liabilities | 759,954,935.10 | 727,847,202.23 |
Total liabilities | 7,902,865,030.77 | 10,094,206,215.63 |
Owner’s equity: | ||
Share capital | 1,002,162,793.00 | 1,008,603,293.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital reserve | 3,308,170,140.96 | 3,398,368,567.63 |
Less: inventory shares | 533,289,512.24 | 541,623,002.63 |
Other comprehensive income | 54,156,915.97 | -911,310.13 |
Reasonable reserve | 3,641,439.97 | 2,119,800.95 |
Surplus public reserve | 510,100,496.00 | 510,100,496.00 |
Provision of general risk | ||
Retained profit | 15,054,950,398.12 | 13,320,021,325.90 |
Total owner’ s equity attributable to parent company | 19,399,892,671.78 | 17,696,679,170.72 |
Minority interests | 778,330,089.26 | 738,027,678.66 |
Total owner’ s equity | 20,178,222,761.04 | 18,434,706,849.38 |
Total liabilities and owner’ s equity | 28,081,087,791.81 | 28,528,913,065.01 |
Legal representative: Wang XiaodongPerson in charge of accounting works: Rong BinPerson in charge of accounting institute: Wu Junfei
2. Balance Sheet of Parent company
In RMB
Item | Dec. 31, 2023 | Jan. 1, 2023 |
Current assets: | ||
Monetary funds | 714,826,120.43 | 823,574,329.53 |
Trading financial assets | 2,251,060,973.85 | 2,693,150,975.20 |
Derivative financial assets | ||
Note receivable | 23,523,055.70 | 29,575,852.04 |
Account receivable | 1,384,059,380.88 | 906,808,283.22 |
Receivable financing | 227,811,949.87 | 216,462,262.44 |
Accounts paid in advance | 45,875,061.25 | 56,037,892.68 |
Other account receivable | 1,370,649,392.28 | 1,472,102,439.27 |
Including: Interest receivable | 842,323.12 | 206,325.34 |
Dividend receivable | ||
Inventories | 549,696,080.27 | 571,571,431.95 |
Contract assets | ||
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | 11,054,042.33 | 107,462,112.82 |
Total current assets | 6,578,556,056.86 | 6,876,745,579.15 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term equity investments | 8,008,012,424.29 | 8,369,843,351.10 |
Investment in other equity instrument | 601,850,690.00 | 601,850,690.00 |
Other non-current financial assets | 804,350,120.06 | 1,326,608,914.00 |
Investment real estate | 34,453,448.06 | 35,584,279.11 |
Fixed assets | 2,376,023,503.55 | 2,251,495,050.80 |
Construction in progress | 218,670,126.54 | 251,304,655.41 |
Productive biological assets | ||
Oil and natural gas assets | ||
Right-of-use assets | 4,290,695.37 | 6,061,693.75 |
Intangible assets | 220,397,330.28 | 209,246,490.17 |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | 3,759,490.67 | 6,895,352.43 |
Deferred income tax assets | 109,441,564.66 | 109,624,761.50 |
Other non-current assets | 731,758,973.92 | 168,744,695.04 |
Total non-current assets | 13,113,008,367.40 | 13,337,259,933.31 |
Total assets | 19,691,564,424.26 | 20,214,005,512.46 |
Current liabilities | ||
Short-term borrowings | 480,490,722.23 | 2,121,354,415.53 |
Trading financial liability | ||
Derivative financial liability | 737,424.50 | |
Notes payable | 365,959,174.48 | 251,867,652.05 |
Account payable | 1,166,435,681.25 | 1,048,268,519.52 |
Accounts received in advance | ||
Contract liability | 8,548,593.06 | 6,564,332.93 |
Wage payable | 168,228,976.90 | 166,314,985.33 |
Taxes payable | 5,327,449.07 | 6,048,505.30 |
Other accounts payable | 216,435,787.01 | 926,276,130.15 |
Including: Interest payable | 1,123,734.04 | 835,069.83 |
Dividend payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | 28,000,984.47 | 4,306,935.71 |
Other current liabilities | 38,294,705.54 | 102,322,311.03 |
Total current liabilities | 2,477,722,074.01 | 4,634,061,212.05 |
Non-current liabilities: | ||
Long-term loans | 299,800,000.00 | |
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Lease liability | 1,836,800.62 | 2,690,812.43 |
Long-term account payable | ||
Long term employee compensation payable | 95,678,717.83 | 121,683,760.89 |
Accrued liabilities | 10,709,925.00 | 13,750.00 |
Deferred income | 160,462,135.18 | 198,149,511.20 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 568,487,578.63 | 322,537,834.52 |
Total liabilities | 3,046,209,652.64 | 4,956,599,046.57 |
Owners’ equity: | ||
Share capital | 1,002,162,793.00 | 1,008,603,293.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital reserve | 3,412,506,010.91 | 3,515,005,861.23 |
Less: Inventory shares | 533,289,512.24 | 541,623,002.63 |
Other comprehensive income | ||
Special reserve | ||
Surplus reserve | 510,100,496.00 | 510,100,496.00 |
Retained profit | 12,253,874,983.95 | 10,765,319,818.29 |
Total owner’s equity | 16,645,354,771.62 | 15,257,406,465.89 |
Total liabilities and owner’s equity | 19,691,564,424.26 | 20,214,005,512.46 |
3. Consolidated Profit Statement
In RMB
Item | 2023 | 2022 |
I. Total operating income | 11,093,141,950.98 | 12,729,634,917.03 |
Including: Operating income | 11,093,141,950.98 | 12,729,634,917.03 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 10,773,357,152.61 | 12,526,691,966.36 |
Including: Operating cost | 9,150,312,640.74 | 11,016,385,488.80 |
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 | 64,464,506.58 | 70,575,584.89 |
Sales expense | 230,571,186.60 | 189,528,090.71 |
Administrative expense | 612,096,726.09 | 586,386,474.32 |
R&D expense | 667,871,159.95 | 581,488,711.88 |
Financial expense | 48,040,932.65 | 82,327,615.76 |
Including: Interest expenses | 95,145,829.10 | 107,737,432.78 |
Interest income | 40,360,794.63 | 41,020,724.48 |
Add: other income | 97,464,970.76 | 112,665,397.27 |
Investment income (Loss is listed with “-”) | 1,701,990,058.24 | 1,849,145,500.50 |
Including: Investment income on affiliated company and joint venture | 1,596,392,131.72 | 1,636,986,684.96 |
The termination of income recognition for financial assets 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 “-”) | 9,767,646.64 | -157,622,752.09 |
Loss of credit impairment (Loss is listed with “- | -4,402,449.07 | -1,645,881,142.40 |
”) | ||
Losses of devaluation of asset (Loss is listed with “-”) | -331,275,532.54 | -181,610,433.12 |
Income from assets disposal (Loss is listed with “-”) | 128,314,484.53 | 1,986,804.53 |
III. Operating profit (Loss is listed with “-”) | 1,921,643,976.93 | 181,626,325.36 |
Add: Non-operating income | 17,111,807.24 | 5,699,768.04 |
Less: Non-operating expense | 4,411,191.85 | 7,711,660.06 |
IV. Total profit (Loss is listed with “-”) | 1,934,344,592.32 | 179,614,433.34 |
Less: Income tax expense | 21,195,062.23 | -11,331,574.91 |
V. Net profit (Net loss is listed with “-”) | 1,913,149,530.09 | 190,946,008.25 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with “-”) | 1,913,149,530.09 | 190,946,008.25 |
2.termination of net profit (net loss listed with “-”) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner’s of parent company | 1,837,291,259.68 | 118,819,836.30 |
2.Minority shareholders’ gains and losses | 75,858,270.41 | 72,126,171.95 |
VI. Net after-tax of other comprehensive income | 55,068,226.10 | 35,835,034.47 |
Net after-tax of other comprehensive income attributable to owners of parent company | 55,068,226.10 | 35,835,034.47 |
(i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | -1,189,898.59 | -399,165.06 |
1.Changes of the defined benefit plans that re-measured | -1,189,898.59 | -399,165.06 |
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 | 56,258,124.69 | 36,234,199.53 |
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 assets 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 | 56,258,124.69 | 36,234,199.53 |
7.Other | ||
Net after-tax of other comprehensive income attributable to minority shareholders | ||
VII. Total comprehensive income | 1,968,217,756.19 | 226,781,042.72 |
Total comprehensive income attributable to owners of parent Company | 1,892,359,485.78 | 154,654,870.77 |
Total comprehensive income attributable to minority shareholders | 75,858,270.41 | 72,126,171.95 |
VIII. Earnings per share: | ||
(i) Basic earnings per share | 1.88 | 0.09 |
(ii) Diluted earnings per share | 1.88 | 0.09 |
Legal Representative: Wang XiaodongPerson in charge of accounting works: Rong BinPerson in charge of accounting institute: Wu Junfei
4. Profit Statement of Parent Company
In RMB
Item | 2023 | 2022 |
I. Operating income | 3,568,007,626.04 | 3,864,504,995.80 |
Less: Operating cost | 2,860,201,219.79 | 3,263,994,952.63 |
Taxes and surcharge | 26,020,608.91 | 21,016,396.56 |
Sales expenses | 37,348,009.82 | 24,032,764.17 |
Administration expenses | 317,148,490.36 | 312,390,634.03 |
R&D expenses | 256,555,205.86 | 215,942,706.30 |
Financial expenses | 43,029,546.08 | -47,492,346.99 |
Including: interest expenses | 70,100,281.69 | 75,002,506.86 |
Interest income | 22,232,354.69 | 123,450,262.42 |
Add: other income | 60,045,052.24 | 78,660,020.95 |
Investment income (Loss is listed with “-”) | 1,551,999,553.88 | 1,698,892,386.70 |
Including: Investment income on affiliated Company and joint venture | 1,372,133,258.69 | 1,427,651,731.23 |
The termination of income recognition for financial assets 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 “-”) | 9,325,222.30 | -157,794,622.92 |
Loss of credit impairment (Loss is listed with “-”) | 599,535.81 | -1,645,695,111.31 |
Losses of devaluation of asset (Loss is listed with “-”) | -71,109,221.75 | -94,397,143.24 |
Income on disposal of assets (Loss is listed with “-”) | 8,262,258.43 | 208,706.65 |
II. Operating profit (Loss is listed with “-”) | 1,586,826,946.13 | -45,505,874.07 |
Add: Non-operating income | 978,746.24 | 236,560.76 |
Less: Non-operating expense | 1,204,343.16 | 1,624,603.88 |
III. Total profit (Loss is listed with “-”) | 1,586,601,349.21 | -46,893,917.19 |
Less: Income tax | 288,204.25 | -24,338,482.27 |
IV. Net profit (Net loss is listed with “-”) | 1,586,313,144.96 | -22,555,434.92 |
(i)continuous operating net profit (net loss listed with ‘-”) | 1,586,313,144.96 | -22,555,434.92 |
(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 | ||
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 |
5. Consolidated Cash Flow Statement
In RMB
Item | 2023 | 2022 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 11,815,615,875.97 | 12,431,900,362.84 |
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 | 247,423,811.65 | 306,395,040.32 |
Other cash received concerning operating activities | 304,312,552.49 | 3,682,848,864.34 |
Subtotal of cash inflow arising from operating activities | 12,367,352,240.11 | 16,421,144,267.50 |
Cash paid for purchasing commodities and receiving labor service | 8,080,288,216.69 | 10,077,477,240.02 |
Net increase of customer loans and advances | ||
Net increase of deposits 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 |
4.Fair value change of enterprise's credit risk
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 assets 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 | 1,586,313,144.96 | -22,555,434.92 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 1,566,762,591.01 | 1,384,027,081.31 |
Taxes paid | 421,031,865.46 | 580,286,995.87 |
Other cash paid concerning operating activities | 673,019,655.05 | 6,955,095,599.73 |
Subtotal of cash outflow arising from operating activities | 10,741,102,328.21 | 18,996,886,916.93 |
Net cash flows arising from operating activities | 1,626,249,911.90 | -2,575,742,649.43 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 3,313,684,345.66 | 10,740,023,339.08 |
Cash received from investment income | 2,327,386,986.20 | 1,183,837,077.82 |
Net cash received from disposal of fixed, intangible and other long-term assets | 146,353,685.07 | 20,576,391.79 |
Net cash received from disposal of subsidiaries and other units | 136,787,298.86 | |
Other cash received concerning investing activities | 18,840,000.00 | |
Subtotal of cash inflow from investing activities | 5,806,265,016.93 | 12,081,224,107.55 |
Cash paid for purchasing fixed, intangible and other long-term assets | 1,113,912,460.11 | 1,152,415,535.85 |
Cash paid for investment | 3,455,088,494.14 | 7,116,445,479.00 |
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units obtained | 13,716,100.33 | 70,190,329.71 |
Other cash paid concerning investing activities | 13,036,225.94 | 146,232,114.50 |
Subtotal of cash outflow from investing activities | 4,595,753,280.52 | 8,485,283,459.06 |
Net cash flows arising from investing activities | 1,210,511,736.41 | 3,595,940,648.49 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | 125,000,000.00 | |
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 125,000,000.00 | |
Cash received from loans | 2,696,375,308.64 | 4,692,002,243.34 |
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 2,696,375,308.64 | 4,817,002,243.34 |
Cash paid for settling debts | 5,372,848,659.59 | 2,328,551,163.70 |
Cash paid for dividend and profit distributing or interest paying | 232,202,783.52 | 1,761,911,157.57 |
Including: Dividend and profit of minority shareholder paid by subsidiaries | 40,453,107.58 | 54,977,987.52 |
Other cash paid concerning financing activities | 164,632,874.00 | 591,370,195.57 |
Subtotal of cash outflow from financing activities | 5,769,684,317.11 | 4,681,832,516.84 |
Net cash flows arising from financing activities | -3,073,309,008.47 | 135,169,726.50 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 21,416,449.75 | 27,730,942.53 |
V. Net increase of cash and cash equivalents | -215,130,910.41 | 1,183,098,668.09 |
Add: Balance of cash and cash equivalents at the period -begin | 2,277,117,604.82 | 1,094,018,936.73 |
VI. Balance of cash and cash equivalents at the period -end | 2,061,986,694.41 | 2,277,117,604.82 |
6. Cash Flow Statement of Parent Company
In RMB
Item | 2023 | 2022 |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 2,992,755,592.93 | 3,542,749,700.01 |
Write-back of tax received | 125,190,524.09 | 184,495,154.77 |
Other cash received concerning operating activities | 77,926,649.97 | 47,404,163.66 |
Subtotal of cash inflow arising from operating activities | 3,195,872,766.99 | 3,774,649,018.44 |
Cash paid for purchasing commodities and receiving labor service | 1,844,781,220.30 | 2,601,006,413.32 |
Cash paid to/for staff and workers | 663,056,090.53 | 707,858,677.98 |
Taxes paid | 141,072,774.09 | 209,864,912.81 |
Other cash paid concerning operating activities | 253,804,167.34 | 186,707,374.55 |
Subtotal of cash outflow arising from operating activities | 2,902,714,252.26 | 3,705,437,378.66 |
Net cash flows arising from operating activities | 293,158,514.73 | 69,211,639.78 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 2,492,465,818.32 | 7,606,003,001.77 |
Cash received from investment income | 2,060,589,193.54 | 1,230,308,621.08 |
Net cash received from disposal of fixed, intangible and other long-term assets | 14,663,395.44 | 7,573,333.23 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | 326,061,324.33 | 1,345,164,876.69 |
Subtotal of cash inflow from investing activities | 4,893,779,731.63 | 10,189,049,832.77 |
Cash paid for purchasing fixed, intangible and other long-term assets | 641,672,060.41 | 676,750,590.56 |
Cash paid for investment | 2,112,142,787.05 | 5,495,846,939.59 |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | 223,723,855.14 | 4,200,652,968.77 |
Subtotal of cash outflow from investing activities | 2,977,538,702.60 | 10,373,250,498.92 |
Net cash flows arising from investing activities | 1,916,241,029.03 | -184,200,666.15 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Cash received from loans | 1,795,000,000.00 | 2,765,016,400.00 |
Other cash received concerning financing activities | 300,000,000.00 | 668,810,047.94 |
Subtotal of cash inflow from financing activities | 2,095,000,000.00 | 3,433,826,447.94 |
Cash paid for settling debts | 3,107,144,800.00 | 926,483,000.00 |
Cash paid for dividend and profit distributing or interest paying | 153,437,599.42 | 1,660,892,442.17 |
Other cash paid concerning financing activities | 1,137,043,447.66 | 426,203,919.97 |
Subtotal of cash outflow from financing activities | 4,397,625,847.08 | 3,013,579,362.14 |
Net cash flows arising from financing activities | -2,302,625,847.08 | 420,247,085.80 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 3,332,858.57 | 9,734,626.92 |
V. Net increase of cash and cash equivalents | -89,893,444.75 | 314,992,686.35 |
Add: Balance of cash and cash equivalents at the period -begin | 803,410,185.18 | 488,417,498.83 |
VI. Balance of cash and cash equivalents at the period -end | 713,516,740.43 | 803,410,185.18 |
7. Statement of Change in Owners’ Equity(Consolidated)
Current Period
In RMB
Item | 2023 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | 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 “-”) | -6,440,500.00 | -90,198,426.67 | -8,333,490.39 | 55,068,226.10 | 1,521,639.02 | 1,734,929,072.22 | 1,703,213,501.06 | 40,302,410.60 | 1,743,515,911.66 | ||||||
(i) Total comprehensive income | 55,068,226.10 | 1,837,291,259.68 | 1,892,359,485.78 | 75,858,270.41 | 1,968,217,756.19 | ||||||||||
(ii) Owners’ devoted and decreased capital | -6,440,500.00 | -103,260,862.78 | -8,333,490.39 | -101,367,872.39 | 4,072,852.94 | -97,295,019.45 | |||||||||
1.Common shares invested by shareholders | 71,917,549.61 | -71,917,549.61 | 5,000,000.00 | -66,917,549.61 | |||||||||||
2.Capital invested by holders of other equity |
instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | -30,009,672.78 | -30,009,672.78 | -929,399.14 | -30,939,071.92 | |||||||||||
4. Other | -6,440,500.00 | -73,251,190.00 | -80,251,040.00 | 559,350.00 | 2,252.08 | 561,602.08 | |||||||||
(III) Profit distribution | -102,362,187.46 | -102,362,187.46 | -40,453,107.58 | -142,815,295.04 | |||||||||||
1. Withdrawal of surplus reserves | |||||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | -97,757,979.30 | -97,757,979.30 | -40,453,107.58 | -138,211,086.88 | |||||||||||
4. Other | -4,604,208.16 | -4,604,208.16 | -4,604,208.16 | ||||||||||||
(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 | 1,521,63 | 1,521,639.02 | 201,878.14 | 1,723,517.16 |
9.02 | |||||||||||||||
1. Withdrawal in the report period | 30,768,590.85 | 30,768,590.85 | 3,311,493.50 | 34,080,084.35 | |||||||||||
2. Usage in the report period | 29,246,951.83 | 29,246,951.83 | 3,109,615.36 | 32,356,567.19 | |||||||||||
(VI)Others | 13,062,436.11 | 13,062,436.11 | 622,516.69 | 13,684,952.80 | |||||||||||
IV. Balance at the end of the report period | 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 |
Last Period
In RMB
Item | 2022 | ||||||||||||||
Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||||
I. Balance at the end of the last year | 1,008,659,570.00 | 3,371,344,172.82 | 270,249,797.74 | -36,746,344.60 | 712,215.31 | 510,100,496.00 | 14,814,787,377.86 | 19,398,607,689.65 | 564,094,065.82 | 19,962,701,755.47 | |||||
Add: Changes of accounting policy | |||||||||||||||
Error correction of the last period | |||||||||||||||
Other | |||||||||||||||
II. Balance at the beginning of this year | 1,008,659,570.00 | 3,371,344,172.82 | 270,249,797.74 | -36,746,344.60 | 712,215.31 | 510,100,496.00 | 14,814,787,377.86 | 19,398,607,689.65 | 564,094,065.82 | 19,962,701,755.47 | |||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -56,277.00 | 27,024,394.81 | 271,373,204.89 | 35,835,034.47 | 1,407,585.64 | -1,494,766,051.96 | -1,701,928,518.93 | 173,933,612.84 | -1,527,994,906.09 | ||||||
(i) Total comprehensive income | 35,835,034.47 | 118,819,836.30 | 154,654,870.77 | 72,126,171.95 | 226,781,042.72 | ||||||||||
(ii) Owners’ devoted and decreased capital | -56,277.00 | 27,024,394.81 | 271,373,204.89 | -244,405,087.08 | 130,826,610.83 | -113,578,476.25 |
1.Common shares invested by shareholders | 397,804,542.63 | -397,804,542.63 | 130,000,000.00 | -267,804,542.63 | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | 28,116,895.55 | 28,116,895.55 | 826,610.83 | 28,943,506.38 | |||||||||||
4. Other | -56,277.00 | -1,092,500.74 | -126,431,337.74 | 125,282,560.00 | 125,282,560.00 | ||||||||||
(III) Profit distribution | -1,613,585,888.26 | -1,613,585,888.26 | -29,306,887.52 | -1,642,892,775.78 | |||||||||||
1. Withdrawal of surplus reserves | |||||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||||
3. Distribution for owners (or shareholders) | -1,609,059,668.80 | -1,609,059,668.80 | -29,306,887.52 | -1,638,366,556.32 | |||||||||||
4. Other | -4,526,219.46 | -4,526,219.46 | -4,526,219.46 | ||||||||||||
(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 | 1,407,585.64 | 1,407,585.64 | 287,717.58 | 1,695,303.22 | |||||||||||
1. Withdrawal in the report period | 26,087,086.34 | 26,087,086.34 | 2,700,074.03 | 28,787,160.37 | |||||||||||
2. Usage in the report period | 24,679,500.70 | 24,679,500.70 | 2,412,356.45 | 27,091,857.15 | |||||||||||
(VI)Others | |||||||||||||||
IV. Balance at the end of the report period | 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 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
Item | 2023 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | 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/ | -6,440,500.00 | -102,499,850.32 | -8,333,490.39 | 1,488,555,165.66 | 1,387,948,305.73 |
Decrease in this year (Decrease is listed with “-”) | ||||||||||||
(i) Total comprehensive income | 1,586,313,144.96 | 1,586,313,144.96 | ||||||||||
(ii) Owners’ devoted and decreased capital | -6,440,500.00 | -104,190,261.92 | -8,333,490.39 | -102,297,271.53 | ||||||||
1.Common shares invested by shareholders | 71,917,549.61 | -71,917,549.61 | ||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | -30,939,071.92 | -30,939,071.92 | ||||||||||
4. Other | -6,440,500.00 | -73,251,190.00 | -80,251,040.00 | 559,350.00 | ||||||||
(III) Profit distribution | -97,757,979.30 | -97,757,979.30 | ||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | -97,757,979.30 | -97,757,979.30 | ||||||||||
3. Other | ||||||||||||
(IV) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve | ||||||||||||
4.Carry-over retained |
earnings from the defined benefit plans | ||||||||||||
5.Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(V) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | 6,474,505.00 | 6,474,505.00 | ||||||||||
2. Usage in the report period | 6,474,505.00 | 6,474,505.00 | ||||||||||
(VI)Others | 1,690,411.60 | 1,690,411.60 | ||||||||||
IV. Balance at the end of the report period | 1,002,162,793.00 | 3,412,506,010.91 | 533,289,512.24 | 510,100,496.00 | 12,253,874,983.95 | 16,645,354,771.62 |
Last Period
In RMB
Item | 2022 | |||||||||||
Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | 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 | 1,008,659,570.00 | 3,487,154,855.59 | 270,249,797.74 | 510,100,496.00 | 12,396,934,922.01 | 17,132,600,045.86 | ||||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. Balance at the beginning of this year | 1,008,659,570.00 | 3,487,154,855.59 | 270,249,797.74 | 510,100,496.00 | 12,396,934,922.01 | 17,132,600,045.86 |
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -56,277.00 | 27,851,005.64 | 271,373,204.89 | -1,631,615,103.72 | -1,875,193,579.97 | |||||||
(i) Total comprehensive income | -22,555,434.92 | -22,555,434.92 | ||||||||||
(ii) Owners’ devoted and decreased capital | -56,277.00 | 27,851,005.64 | 271,373,204.89 | -243,578,476.25 | ||||||||
1.Common shares invested by shareholders | 397,804,542.63 | -397,804,542.63 | ||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | 28,943,506.38 | 28,943,506.38 | ||||||||||
4. Other | -56,277.00 | -1,092,500.74 | -126,431,337.74 | 125,282,560.00 | ||||||||
(III) Profit distribution | -1,609,059,668.80 | -1,609,059,668.80 | ||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | -1,609,059,668.80 | -1,609,059,668.80 | ||||||||||
3. Other | ||||||||||||
(IV) Carrying forward internal owners’ equity | ||||||||||||
1. Capital reserves conversed to capital (share capital) | ||||||||||||
2. Surplus reserves conversed to capital (share capital) | ||||||||||||
3. Remedying loss with surplus reserve |
4.Carry-over retained earnings from the defined benefit plans | ||||||||||||
5.Carry-over retained earnings from other comprehensive income | ||||||||||||
6. Other | ||||||||||||
(V) Reasonable reserve | ||||||||||||
1. Withdrawal in the report period | 6,791,507.46 | 6,791,507.46 | ||||||||||
2. Usage in the report period | 6,791,507.46 | 6,791,507.46 | ||||||||||
(VI)Others | ||||||||||||
IV. Balance at the end of the report period | 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. Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu High-Technology Group Co.,Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company of limited liability with funds raised fromtargeted sources, and registered at Wuxi Administration for Industry & Commerce in October 1992. The original share capital of theCompany totaled 115.4355 million yuan, including state-owned share capital amounting to 92.4355 million yuan, public corporateshare 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 394.46615 millionyuan, of which state-owned shares amounted to 120.16615 million yuan, public corporate shares 10.4 million yuan, foreign-fundedshares (B-share) 88.40 million yuan, RMB ordinary shares (A-share) 156 million yuan and inner employee shares 19.5 million yuan.In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuance ofA-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of 10 yuan for each allotted share. Actually 41.9million shares was allotted, and the total share capital after the allotment increased to 436.36615 million yuan, of which state-ownedcorporate shares amounted to 121.56615 million yuan, public corporate shares 10.4 million yuan, foreign-funded shares (B-share)
88.4 million yuan and RMB ordinary shares (A-share) 216 million yuan.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan, and examined andapproved by 2004 Shareholders’ General Meeting, the Company distributed 3 shares for each 10 shares to the whole shareholderstotaling 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 Assets Supervision & Administration Commission of Jiangsu Province, the WeifuGroup 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 market whensatisfied 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 an aggregateof 14,039,979 shares dispatched. Subsequent to implementation of dispatch of consideration shares, Weifu Group then held100,021,999 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 Assets 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 assets 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) of112,858,000 shares to Wuxi Industry Groups and overseas strategic investor privately, Robert Bosch Company, face value was ONEyuan per share, added registered capital of 112,858,000 yuan, and the registered capital after change was 680,133,995 yuan. WuxiIndustry Group is the first majority shareholder of the Company, and Robert Bosch Company is the second majority shareholder ofthe 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-share forevery 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 repurchased 11,250,422shares of A shares from August 26, 2015 to September 8, 2015, and has finished the cancellation procedures for above repurchaseshares in China Securities Depository and Clearing Corporation Limited Shenzhen Branch on September 16, 2015; after thecancellation of repurchase shares, the company’s paid-up capital (share capital) becomes 1,008,950,570 yuan after the change.After deliberation and approved by the 5
th meeting of 10
th session of the BOD for year of 2021, the 291,000 restricted shares are buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the abovementioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20, 2021; the paid-in capital (equity) ofthe Company comes to 1,008,659,570.00 yuan after changed.After deliberation and approved by the 8
th meeting of 10
th
session of the BOD for year of 2022, the 56,277 restricted shares are buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the abovementioned buy-back shares are completed at the Shenzhen Branch of CSDC on July 8, 2022; the paid-in capital (equity) of theCompany comes to 1,008,603,293.00 yuan after changed.In 2023, deliberated and approved by the 14
th, 16th, and 20
th meetings of the 10
thsession of the Board of Directors, the companybought back and canceled 430,000, 5,593,500, and 417,000 restricted shares granted for the first time under the 2020 RestrictedStock Incentive Plan. The company completed the cancellation procedures for the bought back shares on February 16, 2023, June 16,2023, and December 18, 2023 at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. Thecompany's paid in capital (share capital) after the change was RMB 1,002,162,793.00.
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-massesDepartment, Finance Department, Purchase Department,Manufacturing Quality Department, MS (Mechanical System) division,AC(Automotive Components) division and DS (Diesel System ) division, etc. and subsidiaries such as Wuxi Weifu LIDA CatalyticConverter 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
Operation scope of parent company: Technology development and consulting service in the machinery industry; manufacture ofengine fuel oil system products, fuel oil system testers and equipment, manufacturing of auto electronic parts, automotive electricalcomponents, non-standard equipment, non-standard knife tool and exhaust after-treatment system; sales of the general machinery,hardware & electrical equipment, chemical products & raw materials (excluding hazardous chemicals), automotive components andvehicles (excluding nine-seat passenger car); internal combustion engine maintenance; leasing of the own houses; import and exportbusiness in respect of diversified commodities and technologies (other than those commodities and technologies limited or forbiddenby the State for import and export) by self-operation and works as agent for such business. Research and test development of
engineering and technical; R&D of the energy recovery system; manufacture of auto components and accessories; general equipmentmanufacturing (excluding special equipment manufacturing), (any projects that needs to be approved by laws can only be carried outafter getting approval by relevant authorities) General items: engage in investment activities with self-owned funds (except for itemssubject to approval according to the law, independently carry out business activities according to laws with business licenses )Major subsidiaries respectively activate in production and sales of engine accessories, automotive components, mufflers, purifiersand fuel cell components etc.
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 April 15, 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 WFJN 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 WFTT 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 |
Wuxi Weifu E-drive Technologies Co., Ltd. | WFDT |
Wuxi Weifu Qinglong Power Technology Co., Ltd. | WFQL |
VHIT Automotive Systems(Wuxi) Co.Ltd | VHWX |
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 “Accounting Standardsfor Business Enterprise”), as well as the Compilation Rules for Information Disclosure by Companies Offering Securities to the
Public No.15 – General Provision of Financial Report (Amended in 2023) issued by CSRC in respect of the actual transactions andproceedings, 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. Assets have impairment been found,corresponding depreciation reserves shall Accrued according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impact sustainable operationability 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 EnterprisesFinancial 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 dated December 31, 2023, 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 assets 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 liabilities with aging of over 1 year | Contract liabilities with aging over 1 year account for more than 10% of the total contract liabilities and the amount greater than 15 million yuan |
Important non-wholly-owned subsidiaries | The net assets of subsidiaries account for more than 5% of the net assets 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 assets in the consolidated financial statements and the amount exceeds 1 billion yuan, or the investment gains/losses 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 assets 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 gains/losses 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 entitiesare not ultimately controlled by the same party or parties both before and after the combination. As a purchaser, the fair value of theassets (equity of purchaser held before the date of purchasing included) for purchasing controlling right from the purchaser, theliability occurred or undertake on purchasing date less the fair value of identifiable net assets of the purchaser obtained incombination, shall be recognized as goodwill if the results is positive; if the number is negative, the acquirer shall firstly review themeasurement of the fair value of the identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as thecombination costs. After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, theacquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost for combination shall bereckoned into current gains/losses. Difference of the fair value of assets paid and its book values, reckoned into current gains/losses.On purchasing date, the identifiable assets, liability or contingency of the purchaser obtained by the Company recognized by fairvalue, that required identification conditions; Acquisition date refers to the date on which the acquirer effectively obtains control ofthe 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 facts andcircumstances, including evaluating the purpose and design of the establishment of the structured entity, identifying the types ofvariable returns, and evaluating whether to control the structured entity by participating in its related activities and assuming some orall 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 effective control.Once certain elements involved in the above definition of control change due to changes of relevant facts or circumstances, theCompany will make separate assessment.
(2) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are de-consolidated from the datethat such control ceases. All significant inter-group balances, investment, transactions and unrealized profits are eliminated in theconsolidated financial statements. For subsidiaries being disposed, the operating results and cash flows prior to the date of disposalare included in the consolidated income statement and consolidated cash flow statement; for subsidiaries disposed during the period,the opening balances of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combinationnot under common control, their operating results and cash flows subsequent to the acquisition date are included in the consolidatedincome statement and consolidated cash flow statement, and the opening balances and comparative figures of the consolidatedbalance sheet would not be restated. For subsidiaries acquired from a business combination under common control, their operatingresults and cash flows from the date of commencement of the accounting period in which the combination occurred to the date ofcombination are included in the consolidated income statement and consolidated cash flow statement, and the comparative figures ofthe consolidated balance sheet would be restated.In preparing the consolidated financial statements, where the accounting policies or the accounting periods are inconsistent betweenthe company and subsidiaries, the financial statements of subsidiaries are adjusted in accordance with the accounting policies andaccounting 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 assets on purchased day while financial statement consolidation; concerning the subsidiaryobtained under combination with same control, considered current status of being control by ultimate controller for consolidationwhile financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the subsidiaries fully offset"the net profit attributable to the owners of the parent company". The unrealized gains and losses from the internal transactionsoccurred in the assets 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 gains and losses from the internal transactions occurred in the assets 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 ratio of
the Company to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest” item under 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 income attributableto the minority shareholders” item under the total consolidated income item in the consolidated income statement. If there areminority shareholders, add the "minority interests" item in the consolidated statement of change in equity to reflect the changes of theminority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the share that the minorityshareholders hold in the subsidiary ownership interest in the beginning of the period, the balance still charges against the minorityinterests.When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair value of the remainingequity interest is re-measured on the date when the control ceased. The difference between the sum of the consideration receivedfrom disposal of equity interest and the fair value of the remaining equity interest, less the net assets attributable to the companysince the acquisition date, is recognized as the investment income from the loss of control. Other comprehensive income relating tooriginal equity investment in subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of bythe purchaser directly when the control is lost, namely be transferred to current investment income other than the relevant part of themovement arising from re-measuring net liabilities or net assets under defined benefit scheme by the original subsidiary. Subsequentmeasurement of the remaining equity interests shall be in accordance with relevant accounting standards such as AccountingStandards for business Enterprises 2 – Long-term Equity Investments or Accounting Standards for business Enterprises 22 –Financial Instruments Recognition and Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should be regarded as packagedeal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following situations,the transactions shall normally be accounted for as package deal: ①The transactions are entered into after considering the mutualconsequences of each individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal incommercial sense;③The occurrence of an individual transaction depends on the occurrence of one or more individual transactions inthe series; ④ The result of an individual transaction is not economical, but it would be economical after taking into account of othertransactions in the series. When the transactions are not regarded as package deal, the individual transactions shall be accounted as“disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of a portion of an interest ina subsidiary which lead to loss of control”. When the transactions are regarded as package deal, the transactions shall be accounted asa single disposal transaction; however, the difference between the consideration received from disposal and the share of net assetsdisposed in each individual transaction before loss of control shall be recognized as other comprehensive income, and reclassified asprofit 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 assets held solely by the Company, and recognize assets 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 monetary itemsshall be converted with the spot exchange rate on the balance sheet date. The settlement and monetary item discount differencesarising from this are recognized in the current period's profit and loss, except for the differences arising from foreign currency specialborrowings related to the acquisition and construction of assets that meet capitalization conditions and are treated according to theprinciple of borrowing cost capitalization. Foreign currency non-monetary items measured at historical cost shall be still convertedwith the exchange rate used at the initial recognition without changing their accounting base currency amount. Foreign currency non-monetary items measured at fair value shall be converted with the spot exchange rate on the fair value determination date, and theresulting differences are recognized in the current period’s profit and loss. The subsequent difference shall be booked into currentprofit 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: Theasset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheetdate. Among the owners’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates of thetransaction 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 in othercomprehensive 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 assets
At the initial recognition, according to the business model of managing financial assets and the contractual cash flow characteristicsof financial assets, the Company classifies the financial assets into the financial assets measured at amortized cost, the financialassets measured at fair value and whose changes are included in other comprehensive income, and the financial assets measured at
fair value and whose changes are included in current profit or loss.Financial assets are 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 does notexceed one year isn’t considered, it shall be initially measured at the transaction value.For financial assets 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 assets, related transaction costs are included in the initiallyrecognized amount.
2)Classification and initial measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose changes are included incurrent profit or loss and financial liabilities measured at amortized cost at the initial recognition. For financial liabilities that are notclassified as financial liabilities 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 assets depends on their classification:
① Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured atfair value and whose changes are included in current profit or loss as financial assets measured at amortized cost:
A. The group’s business model for managing the financial assets is to collect contractual cash flows; andB. The contractual terms of the financial assets 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 assets are measured at amortized cost with the effective interest method. Gains or lossesarising from financial assets which are measured at amortized cost and are not a component of any hedging relationship are includedin current profit or loss when being terminated for recognition, amortized by effective interest method, or impaired.
② Financial assets measured at fair value and whose changes are included in other comprehensive incomeThe Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured atfair value and whose changes are included in current profit or loss as financial assets measured at fair value and whose changes areincluded in other comprehensive income:
A. The Group's business model for managing the financial assets is targeted at both the collection of contractual cash flows and thesale of financial assets; 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 assets are subsequently measured at fair value. Interests, impairment losses or gains andexchange gains and losses calculated with the effective interest method are included in profit or loss for the period, and other gains orlosses are included in other comprehensive income. At the time of derecognition, the accumulated gains or losses previously includedin other comprehensive income shall be carried forward from other comprehensive income to current profit or loss.
③ Financial assets measured at fair value and whose changes are included in current profit or lossExcept for the above financial assets measured at amortized cost and measured at fair value and whose changes are included in othercomprehensive income, the Company classifies all other financial assets as financial assets measured at fair value and whose changesare included in current profit or loss. In the initial recognition, in order to eliminate or significantly reduce accounting mismatch, the
Company irreversibly designates part of the financial assets that should be measured at amortized cost or measured at fair value andwhose changes are included in the other comprehensive income as the financial assets measured at fair value and whose changes areincluded in current profit or loss.After the initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses (including interestsand dividend income) are included in the current profit and loss, unless the financial assets are part of the hedging relationship.However, for non-trading equity instrument investments, the Company irreversibly designates them as the financial assets that aremeasured at fair value and whose changes are included in other comprehensive income in the initial recognition. The designation ismade based on a single investment and the relevant investment is in line with the definition of equity instruments from the issuer’sperspective. After initial recognition, such financial assets are subsequently measured at fair value. Dividend income that meets theconditions is included in profit or loss, and other gains or losses and changes in fair value are included in other comprehensiveincome. When it is terminated for recognition, the accumulated gains or losses previously included in other comprehensive incomeare transferred from other comprehensive income and included in retained earnings.
2) The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value and with variation reckoned into current gains/lossesFinancial liabilities measured at fair value and with variation reckoned into current gains/losses include tradable financial liabilitiesand the financial liabilities that are designated as fair value in the initial recognition and whose changes are included in current profitor loss. For such financial liabilities, the subsequent measurement is based on fair value, and the gains or losses arising from changesin fair value and the dividends and interest expenses related to these financial liabilities are included in current profit or loss.
② Financial liability measured at amortized cost
Other financial liabilities are 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 assets
For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets to the transferee,terminate the recognition of the financial assets; if almost all the risks and rewards of ownership of financial assets have beenretained, do not terminate the recognition of the financial assets.If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets, dispose asfollowing situations: If the control of the financial assets is abandoned, terminate the recognition of the financial assets and determinethe resulting assets and liabilities. If the control of the financial assets is not abandoned, determine the relevant financial assetsaccording to the extent to which they continue to be involved in the transferred financial assets, and determine the related liabilitiesaccordingly.For those who continue to be involved by providing financial guarantees for the transferred financial assets, the assets formed byfurther involvement shall be recognized based on the lower of the book value of the financial assets and the amount of financialguarantees. The financial guarantee amount refers to the highest amount of consideration received that will be required to be repaid.
2) General principles for derecognition of financial instruments
If the following conditions are met, the company will derecognize the financial assets (or a portion of financial assets, or a group ofsimilar financial assets), that is, charge off them from their accounts and balance sheets:
① The right to receive cash flows from financial assets has expired;
②The right to receive cash flows from financial assets has been transferred, or assume the obligation to timely and fully pay the cashflows received to the third party under a “pass-through agreement”; and (a) substantially transferred almost all the risks and rewardsof ownership of the financial asset, or (b) relinquished control over the financial asset even though substantially neither transferrednor retained almost all the risks and rewards of ownership of the financial asset.In case the liability for financial liabilities has been fulfilled, revoked or expired, such financial liabilities shall be derecognized. Ifthe existing financial liability is replaced by another financial liability with substantially different terms by the same creditor, or if theterms of the existing liability are 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 assets 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 assets in a conventional manner refers to the purchase or sale offinancial assets in accordance with contractual provisions, and the terms of the contract stipulate that financial assets are deliveredaccording to the time schedule usually determined by regulations or market practices. The trading day refers to the date on which thecompany promises to buy or sell financial assets.
(4) Balance-out between the financial assets and liabilities
As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition, the financial assets and liabilities arelisted in the balance sheet without being balanced out.
(5) Fair value of financial instruments
For financial instruments with active markets, their fair value shall be determined based on their quoted prices in the active market.For financial instruments that do not have an active market, their fair value shall be determined with valuation techniques. At thetime of valuation, the company adopts valuation techniques that are applicable in the current situation and have sufficient availabledata and other information support, selects input values that are consistent with the asset or liability characteristics considered bymarket participants in the transaction of related assets or liabilities, and uses relevant observable input values as much as possible,and use unobservable input values when relevant observable input values cannot be obtained or are not feasible.
(6) Impairment of financial instruments
Based on expected credit losses, the company withdraws provisions for impairment loss and recognizes credit impairment losses forfinancial assets 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, thecompany adopts a simplified measurement method to measure the provision for impairment losses based on the expected credit lossamount 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 losses based on the expected credit lossamount equivalent to the entire existence period.For financial assets 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 losses 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 losses 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 losses 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 losses 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 for accountsreceivable, 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 losses are as follows:
Item | Basis for determining the portfolio | Specific methods for measuring expected credit losses |
Accounts receivable financing - bank acceptance bill portfolio | Bank acceptance bill | For accounts receivable within six months, the company does not provide for expected credit losses; In addition, the company believes that the credit risk of the bank acceptance bills it holds is relatively low and will not cause significant losses due to bank defaults. Therefore, the expected credit losses 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 losses; 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 losses 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 losses have been individually provisioned | Measure expected credit losses 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 losses 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 losses based on their aging, their aging is calculated continuously fromthe initial recognition date of the debt. The corresponding provision ratio for expected credit losses 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 bill
Note receivable 2: commercial acceptance billThe Company calculates expected credit losses by referring to historical credit loss experience, taking into account current conditionsand 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 losses by referring to historical credit loss experience, taking into account current conditionsand forecasts of the future economic situation.
14. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in other comprehensiveincome are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to more relevantaccounting policies in NoteV. 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 losses by referring to historical credit loss experience, taking into account current conditionsand forecasts of the future economic situation.
16. Contract assets
Recognition method and standard of contract assets: contract assets 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 are separatelylisted as receivables.Method for determining expected credit losses of contract assets: the method for determining expected credit losses of contract assetsis consistent with the method for determining expected credit losses of accounts receivable.Accounting treatment method of expected credit losses of contract assets: if the contract assets are impaired, the company shall debitthe “asset impairment loss” account and credit the “contract asset impairment provision” account according to the amount that shouldbe written down. When reversing the provision for asset impairment that has already been withdrawn, make opposite accountingentries.
17. Inventory
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventories
The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method, and the difference incost 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 is withdrawnpursuant 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 sales contractsor service contracts, their net realizable values are calculated on the basis of contract prices. In the event that inventories held by acompany exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the basis ofnormal 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. Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as held-for-sale: according tothe practice of selling this type of assets or disposal groups in a similar transaction, the non-current assets 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 plan andobtained definite purchase commitment, the selling is estimated to be completed within one year. Those assets whose disposal issubject 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 in theseparate financial statement of the parent company subject to that the investment in the subsidiary proposed to be disposed satisfiesthe conditions for being classified as held for sale, and all the assets and liabilities of the subsidiary shall be classified as held for salein 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, whichrender an extremely minor possibility for material adjustment or revocation of the agreement.Assets held for sale are measured at the lower of their carrying value and fair value less selling expense. If the carrying value ishigher 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 assets. 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 assets within the disposal group applicable to this measurement standard on a pro rata basis according to theproportion taken by their carrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet date increases, the
amount previously reduced for accounting shall be recovered and reverted from the impairment loss recognized after the asset 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 of thedisposal group held for sale on the subsequent balance sheet date less sales expenses increases, the amount reduced for accounting inprevious periods shall be restored, and shall be reverted in the impairment loss recognized in respect of the non-current assets whichare applicable to relevant measurement provisions after classification into the category of held for sale, with the reverted amountcharged in profit or loss for the current period. The written-off carrying value of goodwill shall not be reverted.The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized, and the debt interestsand other fees in the disposal group held for sale continue to be recognized.If the non-current assets or disposal group are no longer classified as assets held for sale since they no longer meet the condition ofbeing classified as held for sale or the non-current assets are 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, amortization orimpairment 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 the Groupis accounted for as available-for-sale financial assets or financial assets measured at fair value and with variation reckoned intocurrent gains/losses. 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 the owner’sequity under the consolidated financial statements of the ultimate controlling party on the date of combination. The differencebetween the initial cost of the long-term equity investment and the cash paid, non-cash assets transferred as well as the book value ofthe debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, theretained earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial investmentcost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under theconsolidated financial statements of the ultimate controlling party on the date of combination. With the total face value of the sharesissued as share capital, the difference between the initial cost of the long-term equity investment and total face value of the sharesissued shall be used to offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall beadjusted. For business combination resulting in an enterprise under common control by acquiring equity of the absorbing party undercommon control through a stage-up approach with several transactions, these transactions will be judged whether they shall betreated 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 shall be the absorbingparty’s share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controllingparty on the date of combination. The difference between the initial cost of the long-term equity investment and the aggregate of thecarrying amount of the long-term equity investment before merging and the carrying amount the additional consideration paid forfurther share acquisition on the date of combination shall offset against the capital reserve. If the capital reserve is insufficient tooffset, the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held equityinvestment accounted for using equity method on the date of combination or recognized for available-for-sale financial assets 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 assetsinvolved, the equity instruments issued and the liabilities incurred or assumed on the transaction date, plus the combined cost directlyrelated to the acquisition is used as the initial investment cost of the long-term equity investment. The identifiable assets of thecombined party and the liabilities (including contingent liabilities) 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 assets of the combined party obtained by the Company is recorded as goodwill, and the amountbelow the fair value of the identifiable net assets 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 be treatas “package deal”. If they belong to “package deal”, these transactions will be accounted for a transaction in obtaining control. If theyare not belonging to “package deal”, the initial investment cost of the long-term equity investment accounted for using cost methodshall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investment cost.For previously held equity accounted for using equity method, relevant other comprehensive income will not be accounted for. Forpreviously held equity investment classified as available-for-sale financial asset, the difference between its fair value and carryingamount, as well as the accumulated movement in fair value previously included in the other comprehensive income shall betransferred to profit or loss for the current period.)
③ Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according to actual paymentfor purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is determined at fair value ofsuch securities;C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-monetary assets, whichis of commercial nature, is determined at fair value of the assets exchanged-out; otherwise determined at carrying value of the assetsexchanged-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 the investedparty are accounted for using equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds the investor’s interest in the fairvalue of the invested party’s identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost.Where the initial investment cost is less than the investor’s interest in the fair value of the invested party’s identifiable net assets atthe acquisition date, the difference shall be charged to profit or loss for the current period, and the cost of the long term equityinvestment shall be adjusted accordingly.Under the equity method, investment gain and other comprehensive income shall be recognized based on the Group’s share of the netprofits or losses 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 the Group’sshare of profit or cash dividend distributed by the invested party. In respect of the other movement of net profit or loss, othercomprehensive income and profit distribution of invested party, the carrying value of long-term equity investment shall be adjustedand included in the capital reserves. The Group shall recognize its share of the invested party’s net profits or losses based on the fairvalues of the invested party’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustments
thereto. In the event of in-conformity between the accounting policies and accounting periods of the invested party and the Company,the financial statements of the invested party shall be adjusted in conformity with the accounting policies and accounting periods ofthe Company. Investment gain and other comprehensive income shall be recognized accordingly. In respect of the transactionsbetween the Group and its associates and joint ventures in which the assets disposed of or sold are not classified as operation, theshare of unrealized gain or loss arising from inter-group transactions shall be eliminated by the portion attributable to the Company.Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions between theGroup and an invested party is not eliminated to the extent that the loss is impairment loss of the transferred assets. In the event thatthe Group disposed of an asset classified as operation to its joint ventures or associates, which resulted in acquisition of long-termequity investment by the investor without obtaining control, the initial investment cost of additional long-term equity investmentshall be the fair value of disposed operation. The difference between initial investment cost and the carrying value of disposedoperation will be fully included in profit or loss for the current period. In the event that the Group sold an asset classified as operationto its associates or joint ventures, the difference between the carrying value of consideration received and operation shall be fullyincluded in profit or loss for the current period. In the event that the Company acquired an asset which formed an operation from itsassociates or joint ventures, relevant transaction shall be accounted for in accordance with “Accounting Standards for BusinessEnterprises No. 20 “Business combination”. All profit or loss related to the transaction shall be accounted for.The Group’s share of net losses of the 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 losses.
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 assets 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 to setoff 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 assets of thesubsidiary is charged to the owners’ equity. If disposal of a portion of the long-term equity investments in a subsidiary by the parentcompany results in a change in control, it shall be accounted for in accordance with the relevant accounting policies as described inNote V-7. “Criteria for judging control and preparation method for consolidated financial statement”.On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the investment and the actualconsideration 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 basis atthe time of disposal. The owners’ equity recognized for the movement of other owners’ equity (excluding net profit or loss, othercomprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current period on pro ratabasis.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 financial instrumentbefore control of the invested party unit acquired shall be accounted for in accordance with the same accounting treatment for directdisposal of relevant asset or liability by invested party on pro rata basis at the time of disposal and shall be transferred to profit or loss
for the current period on pro rata basis; among the net assets of invested party unit recognized by equity method (excluding net profitor loss, other comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the currentperiod 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 the investedparty after disposal shall be accounted for using equity method. Such remaining equity interest shall be treated as accounting forusing equity method since it is obtained and adjustment was made accordingly. For remaining equity interest which cannot applycommon control or impose significant influence over the invested party after disposal, it shall be accounted for using the recognitionand measurement standard of financial instruments. The difference between its fair value and carrying amount as at the date of losingcontrol shall be included in profit or loss for the current period. In respect of other comprehensive income recognized using equitymethod or the recognition and measurement standard of financial instruments before the Group obtained control over the investedparty, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability byinvested party at the time when the control over invested party is lost. Movement of other owners’ equity (excluding net profit or loss,other comprehensive income and profit distribution under net asset of invested party accounted for and recognized using equitymethod) shall be transferred to profit or loss for the current period at the time when the control over invested party is lost. Of which,for the remaining equity interest after disposal accounted for using equity method, other comprehensive income and other owners’equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for using the recognition andmeasurement standard of financial instruments, other comprehensive income and other owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equity investment by theGroup, 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. Movement ofother owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investedparty accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at the time whenequity 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 transaction ofdisposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transactionand the carrying amount of the corresponding long-term equity investment of disposed equity interest before loss of control shallinitially recognized as other comprehensive income, and subsequently transferred to profit or loss arising from loss of control for thecurrent 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, andthen judge whether the decision-making for such arrangement are agreed unanimity by the participants or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of an invested party,but to fail to control or joint control the formulation of such policies together with other parties. When determining 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 assets 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 those undercontract 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 assets
(1) Recognition conditions
Fixed assets refer to the tangible assets 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 assets with impairment provision, the depreciation amount shall be calculated after deducting the accumulated amountof impairment provision for fixed assetsThe Company shall review the useful life, estimated net residual value, and depreciation method of fixed assets at least at the end ofeach fiscal year, and make necessary adjustments.
22. Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state, the construction in progress areconverted into fixed assets on the basis of the estimated value of project estimates or pricing or project actual costs, etc. Depreciationis calculated from the next month. Further adjustments are made to the difference of the original value of fixed assets after finalaccounting 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 in
connection with foreign currency borrowings. The borrowing costs of the Company, which incur from the special borrowingsoccupied by the fixed assets 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 assets 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;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such assets reached toits intended use of status or sales, than reckoned into assets costs while satisfy the above mentioned capitalization condition;capitalization of borrowing costs shall be suspended and recognized as current expenditure during periods in which construction offixed assets, investment real estate and inventory are interrupted abnormally, when the interruption is for a continuous period of morethan 3 months, until the acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinuewhen the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned intofinancial 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 assets qualified forcapitalization, the amount of interests expenses of the special borrowings actually occurred in the period less interest income derivedfrom unused borrowings deposited in banks or less investment income derived from provisional investment, are recognized.With respect to the general borrowings occupied for acquisition, construction or production and development of the assets qualifiedfor capitalization, the capitalized interest amount for general borrowings is calculated and recognized by multiplying a weightedaverage of the accumulated expenditure on the assets in excess of the expenditure on the assets of the special borrowings, by acapitalization rate for general borrowings. The capitalization rate is determined by calculation of the weighted average interest rate ofthe general borrowings.
24. Intangible assets
(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 assets
The intangible assets 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 assets acquired through exchange of non-monetary assets, which is commercial in substance, is carried at the fairvalue of the assets exchanged out; for those not commercial in substance, they are carried at the carrying amount of the assetsexchanged out.The intangible assets acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible assets:
The land use rights of the company shall be amortized on an average basis over the transfer period from the date of transfer (the dateof obtaining the land use rights); Patented technology, non-patented technology and other intangible assets of the Company are
amortized 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 assets costs and current gains/losses according tothe benefit object.As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.Our company shall review the useful life and amortization method of intangible assets 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 assets (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 development ofthe 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 gains/losses previously shall notbe recognized as assets in later period. The capitalized expenses in development stage listed as development expenditure in balancesheet, and shall be transfer as intangible assets since such item reached its expected conditions for service.
25. Impairment of long-term assets
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of non-current non-financialassets such as fixed assets, construction in progress, intangible assets with a finite useful life, investment properties measured at cost,and long-term equity investments in subsidiaries, joint controlled entities and associates. If there is any evidence indicating that anasset may be impaired, recoverable amount shall be estimated for impairment test. Goodwill, intangible assets with an indefiniteuseful life and intangible assets beyond working conditions will be tested for impairment annually, regardless of whether there is anyindication of impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairment provisionwill be made according to the difference and recognized as an impairment loss. The recoverable amount of an asset is the higher ofits fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. An asset’s fairvalue is the price in a sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in an activemarket, fair value shall be determined based on the bid price. If there is neither sale agreement nor active market for an asset, fairvalue shall be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset, includinglegal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the asset for its intended sale. Thepresent value of the future cash flows expected to be derived from the asset over the course of continued use and final disposal isdetermined as the amount discounted using an appropriately selected discount rate. Provisions for assets impairment shall be madeand recognized for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group shalldetermine the recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assetscapable of generating cash flows independently.For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements shall beallocated to the asset groups or group of assets benefiting from synergy of business combination. If the recoverable amount is less
than the carrying amount, the Group shall recognize an impairment loss. The amount of impairment loss shall first reduce thecarrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of otherassets (other than goodwill) within the asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the part whose valuecan 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 or receivablefrom customers as contractual liabilities, such as the amount that the company has received before the transfer of the promissorygoods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff provides service to the Company, the short-term remuneration actual occurred shall berecognized as liability and be reckoned into current gains/losses. During the accounting period when staff provides service to theCompany, the actual short-term compensation occurred shall be recognized as liabilities and be reckoned into current gains/losses,except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall bereckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The employee compensation shall berecognized as liabilities and be reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. Theemployee benefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medicalinsurance, work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well asthe labor union expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined asthe corresponding compensation amount and determined the corresponding liabilities in accordance with the specified withdrawingbasis and proportion, and be reckoned in the current profits and losses 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 plan refersto the agreement about the post-employment benefits between the enterprise and employees, or the regulations or measures theenterprise 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 providescompensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize employeecompensation liabilities arising from compensation for staff dismissal and included in profit or loss for the current period, when the
Company cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employeeredundant proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal andrestructuring, whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles forcompensation for termination of employment. The salaries or wages and the social contributions to be paid for the employees whoretire before schedule from the date on which the employees stop rendering services to the scheduled retirement date, shall berecognized (as compensation for termination of employment) in the current profit or loss by the Group if the recognition principlesfor 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 assets 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 settlementgains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes generated byrecalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.
29. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigation or arbitration, product warranties,redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc. shall be recognized as an estimatedliability 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 liabilities 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 the equityinstruments granted to employees. If the Company uses restricted stocks for share-based payment, employees contribute capital tosubscribe for stocks, and the stocks shall not be listed for circulation or transfer until the unlocking conditions are met and unlocked;if the unlocking conditions specified in the final equity incentive plan are not met, the Company shall repurchase the stocks at thepre-agreed price. When the Company obtains the payment for the employees to subscribe for restricted stocks, it shall confirm theshare capital and capital reserve (share capital premium) according to the obtained subscription money, and at the same timerecognize a liability in full for the repurchase obligation and recognize treasury shares. On each balance sheet date during the waitingperiod, the Company makes the best estimate of the number of vesting equity instruments based on the changes in the latest obtainednumber of vested employees, whether they meet the specified performance conditions, and other follow-up information. On this basis,
the services obtained in the current period are included in related costs or expenses based on the fair value on the grant date, and thecapital 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 a changethat 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 conditions butfails to meet within the waiting period, it shall be treated as cancellation of equity-settled share-based payment. However, if a newequity instrument is granted and it is determined on the date of grant of the new equity instrument that the new equity instrumentgranted is used to replace the cancelled equity instrument, the granted substitute equity instruments shall be treated in the same wayas 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 liabilities calculated and determined on the basis of shares orother equity instruments undertaken by the Company. If it’s vested immediately after the grant, the fair value of the liabilitiesassumed on the date of the grant is included in the cost or expense, and the liability is increased accordingly. If the service within thewaiting 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 liabilities assumed to increase the corresponding liabilities. On each balance sheet date and settlement date before thesettlement of the relevant liabilities, the fair value of the liabilities 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 obligation containedin the contract, and determines whether each individual performance obligation is performed within a certain period of time or at acertain 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 or servicesin progress during the company’s performance; ③ The goods or services produced during the company’s performance haveirreplaceable uses, and the company has the right to collect payment for the performance part that has been completed so far duringthe 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 at thepoint when the customer obtains control of the relevant goods or services. When judging whether the customer has obtained controlof the goods, the company considers the following signs: ① The company has the current right to receive payment for the goods, thatis, the customer has the current payment obligation for the goods; ② The company has transferred the legal ownership of the goods
to the customer, that is, the customer has the legal ownership of the goods; ③ The company has transferred the goods to the customerin kind, that is, the customer has physically taken possession of the goods; ④ The company has transferred the main risks andrewards of the ownership of the goods to the customer, that is, the customer has obtained the main risks and rewards of the ownershipof the goods; ⑤ The customer has received the goods; ⑥ Other signs that the customer has obtained control of the goods.
2)Revenue measurement principle
①The company measures revenue based on the transaction price allocated to each individual performance obligation. 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 relevant uncertaintyis 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 shall issueinvoices to the buyer according to the varieties, quantities and amounts confirmed by the reconciliation and confirm the realization ofsales 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 assets or non-monetary assets from the government to the Group at no consideration.Government grants are classified into government grants related to assets and government grants related to income.As for the assistance object not well-defined in government’s documents, the classification criteria for assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is actually can be obtained.If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount received or receivable.If a government grant is in the form of a transfer of non-monetary asset, the government grant shall be measured at fair value and itshall 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 gains/losses according tothe depreciation process in use life of such assets.The government grant related to income which is used to make up relevant expenses and losses for later period shall be recognized asdeferred income, and be reckoned into current gain/loss during the period while relevant expenses are recognized; The governmentgrant related to income which is used to make up relevant expenses and losses that occurred shall be reckoned into currentgains/losses.The government grant related to daily operation activity of the Company should be reckoned into other income; those without relatedto 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 assets/Deferred income tax liabilities
The company adopts the balance sheet debt method to calculate deferred income tax based on the temporary difference between thebook value and tax basis of assets and liabilities 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 assets and liabilities but can be determined according to tax laws.All types of taxable temporary differences are recognized as deferred income tax liabilities, unless: ① taxable temporary differencesarise in the following transactions: initial recognition of goodwill, or initial recognition of assets or liabilities arising from a singletransaction with the following characteristics: the transaction is not a business merger. When the transaction occurs, it neither affectsaccounting profits nor taxable income or deductible losses, and the initially recognized assets and liabilities do not result in equaltaxable temporary differences and deductible temporary differences; ② For taxable temporary differences related to investments insubsidiaries, joint ventures, and associates, the timing of the reversal of such temporary differences can be controlled, and it is likelythat 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 assets based on the future taxable income that is likely to be obtained to offset the deductibletemporary differences, deductible losses, 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 accounting profitsor taxable income or deductible losses at the time of occurrence, and the initially recognized assets and liabilities 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 assets and liabilities in accordance with tax laws andregulations, at the applicable tax rate during the expected period of asset recovery or liability settlement, and reflects the tax impactof 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 assets. If it is likely that sufficient taxableincome will not be available in the future to offset the benefits of deferred income tax assets, the book value of deferred income taxassets will be written down. On the balance sheet date, the Company reassesses unconfirmed deferred income tax assets andrecognizes deferred income tax assets to the extent that sufficient taxable income is likely to be available for the reversal of all or partof the deferred income tax assets.When the following conditions are met simultaneously, deferred income tax assets and deferred income tax liabilities are presented atthe net amount after offsetting: having the legal right to settle current income tax assets and current income tax liabilities at the netamount; Deferred income tax assets and deferred income tax liabilities are 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 significant
deferred income tax assets and deferred income tax liabilities are reversed in the future, the involved taxpayers intend to settle thecurrent income tax assets and liabilities on a net basis or acquire assets and settle debts simultaneously.
34. Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within a certain period oftime. On the commencement date of the contract, the company evaluates whether the contract is a lease or includes a lease. If oneparty in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange forconsideration, the contract is a lease or includes a lease. If the contract includes multiple separate leases at the same time, thecompany will split the contract and conduct accounting treatment for each separate lease. If the contract includes both the leased andnon-leased parts, the lessee and the lessor shall separate the leased and non leased parts.
(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 new assetare recognized as low value asset leases.If the company subleases or expects to sublease leased assets, 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-useassets and lease liabilities for leases on the commencement date of the lease term.
1) Right-of-use assets
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 liabilities; ②If the lease payment is made on or before the start date of the lease term andthe relevant amount of the lease incentive already enjoyed shall be deducted in case there is a lease incentive; ③The initial directexpenses incurred by the lessee; ④The expected cost incurred by the lessee in dismantling and removing the leased asset, restoringthe site where the leased asset is located, or restoring the leased asset to the state agreed upon in the lease terms. The companyrecognizes and measures the cost in accordance with the recognition standards and measurement methods for estimated liabilities, asdetailed in Note V-29 “Accrued liability”. The aforementioned costs incurred for the production of inventory will be included in theinventory cost.The depreciation of right-of-use assets is classified and provisioned with the straight-line method. In case it can reasonably determinethat ownership of the leased asset will be obtained upon the expiration of the lease term, the depreciation rate shall be determinedbased on the category of the right-of-use asset and the estimated net residual value rate within the expected remaining useful life ofthe leased asset; In case it cannot reasonably determine that ownership of the leased asset will be acquired upon the expiration of thelease term, the depreciation rate shall be determined based on the category of the right-of-use asset during the shorter of the leaseterm and the remaining useful life of the leased asset.
2)Lease liability
Lease liabilities 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 be paid
based on the residual value of the guarantee provided by the lessee.When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If the interestrate implicit in the lease cannot be determined, the company’s incremental borrowing rate is used as the discount rate. The Companycalculates the interest expense of the lease liability in each period of the lease term according to the fixed periodic interest rate, andincludes it in the current profit and loss, unless it is otherwise stipulated to be included in the cost of the relevant assets. Variablelease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when they areactually incurred, unless otherwise stipulated to be included in the cost of the relevant assets.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, ora change in the evaluation results of the purchase option, renewal option or termination option or when the actual exercise situationchanges, the Company shall re-measure the lease liability according to the present value of the changed lease payments.
(2) The company as lessor
On the lease commencement date, the company classifies leases that have substantially transferred almost all the risks and rewardsrelated to the ownership of the leased assets 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, andthe initial direct expenses incurred are capitalized, amortized on the same basis as the recognition of rental income, and included inthe current profit and loss by stages. The variable lease payments obtained by the company related to operating leases that are notincluded in the lease receipts are booked in the current profits and losses when actually incurred.
2) Finance lease
On the beginning date of the lease term, the financial lease receivables is recognized by the company according to the net amount ofthe 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 assets. During each period of the lease term, the company calculates and recognizes the interest income accordingto the interest rate embedded in the lease. The amount of variable lease payments obtained by the company that are not included inthe measurement of net lease investment shall be included in the current profit and loss when actually incurred.
(3) Accounting treatment of lease changes
1) Lease change as a separate lease
If there is a change in lease and the following conditions are met simultaneously, the company will treat the lease change as aseparate lease for accounting treatment: ① The lease change expands the lease scope by adding the right to use one or more leasedassets; ② The increased consideration is equivalent to the individual price for the expansion of the lease scope, adjusted according tothe situation of the contract.
2) Lease change not treated as a separate lease
① the company as the lessee
On the effective date of the lease change, the company re-determines the lease term and uses the revised discount rate to discount therevised lease payment amount, in order to remeasure the lease liability. When calculating the present value of lease payments afterchanges, the implicit interest rate of the remaining lease period is used as the discount rate; If the implicit interest rate of theremaining lease term cannot be determined, the incremental loan interest rate on the effective date of the lease change shall be usedas the discount rate.Regarding the impact of the lease liability adjustment mentioned above, distinguish the following situations for accounting treatment:
A. If the lease change results in a reduction in the lease scope or lease term, the book value of the right-of-use assets shall be reduced,and the relevant gains/losses arising from partial or complete termination of the lease shall be recognized in the current profit andloss;
B. For other lease changes, the book value of the right-of-use assets shall be adjusted accordingly.
② The company as the lessor
If there is a change in the operating lease, the company will treat it as a new lease for accounting treatment from the effective date ofthe change. The advance receipts or receivable lease payments related to the lease before the change are considered as the new leasepayments.If the change in financing lease is not accounted for as a separate lease, the Company will treat the changed lease as follows: if thelease change takes effect on the lease commencement date, and the lease will be classified as an operating lease, the Company willtreat it as a new lease from the effective date of the lease change and use the net lease investment before the effective date of thelease change as the book value of the leased asset; If the lease change takes effect on the lease commencement date, and the leasewill be classified as a financing lease, the company will conduct accounting treatment in accordance with the provisions onmodifying or renegotiating the contract.
(4) Sale leaseback
The company evaluates and determines whether the asset transfer in the sale leaseback transaction is a sale in accordance with theaccounting standards for Business Enterprises No. 14 - revenue.
1) The company as lessee
If the asset transfer in the sale leaseback transaction is a sale, the company measures the right-to-use assets formed by the sale andleaseback according to the part of the book value of the original assets related to the right-to-use obtained by the leaseback, and onlyrecognizes the relevant gains or losses on the rights transferred to the lessor.If the asset transfer in the sale leaseback transaction is not a sale, the company will continue to recognize the transferred asset, andmeanwhile recognize a financial liability equal to the transfer income, and carry out accounting treatment for the financial liability inaccordance with the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments.
2) The company as lessor
If the asset transfer in the sale leaseback transaction is a sale, the company will conduct accounting treatment for asset purchase inaccordance with other applicable accounting standards for business enterprises, and accounting treatment for asset lease inaccordance with accounting standards for Business Enterprises No. 21 - leasing.If the asset transfer in the sale leaseback transaction is not a sale, the company does not recognize the transferred asset, butrecognizes a financial asset equal to the transfer income, and carries out accounting treatment for the financial asset in accordancewith the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments.
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
(1) Significant accounting policy changes
Accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions not subject to initialrecognition exemption:
On November 30, 2022, the Ministry of Finance issued the Interpretation No. 16 of the Accounting Standards for Enterprises(CK[2022] No. 31, hereinafter referred to as “Interpretation No. 16”).According to Interpretation No. 16, for individual transactions that are not business combinations and do not affect accounting profitsor taxable income (or deductible losses) at the time of transaction, and the initially recognized assets and liabilities result in equal
taxable temporary differences and deductible temporary differences (including leasing transactions in which the lessee initiallyrecognizes the lease liability and books it in the right-of-use asset on the lease term start date, as well as transactions in which thelessee recognizes the expected liability and books it in the cost of related assets due to abandonment obligations of fixed assets, etc.),the provisions exempting the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable.Enterprises should recognize the corresponding deferred income tax liabilities and deferred income tax assets separately inaccordance with Accounting Standards for Enterprises No. 18- Income Tax and other relevant provisions at the time of transaction.This regulation will come into effect since January 1, 2023. For individual transactions that apply this regulation that occur betweenthe beginning and the implementation date of the earliest period in which this regulation is first implemented in financial statements,the lease liabilities and the right-of-use assets recognized at the beginning of the earliest period in financial statements due to theapplication of this regulation in individual transactions, as well as the expected liabilities and corresponding assets related toabandonment obligations, if there are taxable temporary differences and deductible temporary differences, the company shall makeadjustments in accordance with this regulation. The implementation of this regulation will not have any impact on the amounts ofeach account in the company’s financial statements as of January 1, 2023, but will have an impact on the presentation of the notes tothe financial statements as of January 1, 2023, as follows:
Note 20 to the consolidated financial statements: Deferred tax assets/deferred tax liabilities:
(1) Deferred tax assets that have not been offset:
Item | December 31, 2022 | Affected amount | January 1, 2023 | |||
Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
Lease liabilities | 1,345,462.74 | 234,721.68 | 13,227,441.18 | 2,578,204.66 | 14,572,903.92 | 2,812,926.34 |
(2) Deferred income tax liabilities that have not been offset
Item | December 31, 2022 | Affected amount | January 1, 2023 | |||
Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
Right-of-use assets | -- | -- | 13,227,441.18 | 2,578,204.66 | 13,227,441.18 | 2,578,204.66 |
(3) Deferred tax assets or liabilities presented as net after offsetting:
Item | December 31, 2022 | Affected amount | January 1, 2023 | |||
Offset between deferred income tax assets and liabilities offset at the end of the period | Ending balance of deferred income tax assets or liabilities after offset | Offset amount between deferred income tax assets and liabilities | Balance of deferred income tax assets or liabilities after offset | Offset amount between deferred income tax assets and liabilities at the beginning of the period | Opening balance of deferred income tax assets or liabilities after offsetting | |
Deferred tax assets | 126,261,238.77 | 275,627,772.45 | 2,578,204.66 | -- | 128,839,443.43 | 275,627,772.45 |
Deferred tax liability | 126,261,238.77 | 40,149,550.99 | 2,578,204.66 | -- | 128,839,443.43 | 40,149,550.99 |
Note to the main items in the financial statements of the parent company: Nil.
(2) Changes of important accounting estimation
□Applicable ? Not applicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2023, andimplementation of relevant financial statement items at the beginning of the year for the first time
□Applicable ?Not applicable
37. Significant accounting judgments and estimates
In the process of applying the Company’s accounting policies, due to the inherent uncertainty of business activities, the Companyneeds to judge, estimate and assume the book value of the entries of financial statements which cannot be accurately measured. Thesejudgments, estimates and assumptions are made on the basis of the historical experience of the Company’s management and byconsidering other relevant factors, which shall impact the reported amounts of income, expenses, assets and liabilities and thedisclosure of contingent liabilities on the balance sheet date. However, the actual results caused by the estimated uncertainties maydiffer from the management's current estimates of the Company so as to carry out the significant adjustments to the book value of theassets or liabilities to be affected.The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of continuing operations, thechanges in accounting estimates only affect the current period, of which the impacts shall be recognized in the current period; thechanges in accounting estimates not only affect the current period but also the future periods, of which the impacts are recognized inthe current and future periods.On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate and assume areas follows:
(1) Provision for bad debts
The Company uses the expected credit loss model to assess the impairment of financial instruments. The application of the expectedcredit loss model requires significant judgement and estimates, and must consider all reasonable and evidence-based information,including forward-looking information. In making such judgments and estimates, the Company infers the expected changes indebtors’ credit risks based on historical repayment data combined with economic policies, macroeconomic indicators, industry risksand other factors.
(2) Inventory depreciation reserve
According to the inventory accounting policy, the company measures inventory at the lower of cost and net realizable value. Forinventory with costs higher than net realizable value, as well as obsolete and unsold inventory, the inventory depreciation reserveshall be made. The inventory devalues to the net realizable value by evaluating the inventory’s vendibility and net realizable value.To identify the inventory impairment, the management needs to obtain the unambiguous evidences, and consider the purpose to holdthe inventory, and judge and estimate the impacts of events after the balance sheet date. The actual results and the differencesbetween the previously estimated results shall affect the book value of inventory and the provision or return of the inventoryimpairment during the period estimated to be changed.
(3) Preparation for the impairment of non-financial and non-current assetsThe Company checks whether the non-current assets except for the financial assets may decrease in value at the balance sheet date.For the intangible assets with indefinite service life, in addition to the annual impairment test, the impairment test is also neededwhen there is a sign of impairment. For the other non-current assets except for the financial assets, the impairment test is neededwhen it indicates that the book amounts may not be recoverable.When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net amount bysubtracting the disposal costs from the fair value and the present value of expected future cash flows, it indicates the impairment.As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price similar to the assets inthe fair trade or the observable market price, and subtract the incremental costs determination directly attributable to the disposal ofthe asset.When estimating the present value of the future cash flow, the Company needs to make significant judgments to the output, price,and related operating expenses of the asset (or asset group) and the discount rate used for calculating the present value. Whenestimating the recoverable amount, the Company shall adopt all relevant information obtained, including the prediction related to the
output, price, and related operating expenses based on the reasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year, which requires to estimate the present value of theasset group allocated with goodwill or the future cash flow combined by the asset group. When estimating the present value of thefuture cash flow, the Company needs to estimate the future cash flows generated by the asset group or the combination of asset group,and select the proper discount rate to determine the present value of the future cash flows.
(4) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets with the straight-line method inthe service life after considering the residual value. The Company regularly reviews the service life to determine the depreciation andamortization expense amount to be reckoned in each reporting period. The service life is determined by the Company based on thepast experience of similar assets and the expected technological updating. If the previous estimates have significant changes, thedepreciation and amortization expense shall be adjusted in future periods.
(5) Fair value of financial instrument
For financial instruments that there is no active market to provide quotes, valuation techniques shall be used to determine fair value.Valuation techniques include the latest transaction information, discounted cash flow methods, and option pricing models TheCompany has established a set of work processes to ensure that qualified personnel are responsible for the calculation, verificationand review of fair value. The valuation model used by the Company applies the market information as much as possible and appliesthe company-specific information as little as possible. It should be noted that part of the information used in the valuation modelrequires management’s estimation (such as discount rate, target exchange rate volatility, etc.).The Company regularly reviews theabove estimates and assumptions and makes adjustments if necessary.
(6) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have some uncertainties.Whether some projects can be disbursed from the cost and expenses before taxes requires needs to get approval from the taxauthorities. If the final affirmation of these tax matters differs from the initially estimated amount, the difference shall have an impacton its current and deferred income taxes during the final identification period.
38. Others
NilVI. 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% + regional tax 3.9% |
Educational surtax | Turnover tax payable | 5% |
Disclose reasons for different taxpaying objects:
Taxpaying body | Income tax rate |
The Company, WFJN, WFLD, WFTT, WFMA, WFAM, WFSC, 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) | 25% |
VHIO(Italy) | 24% + Regional tax 3.9% |
2. Tax incentives
The Company, WFJN, WFLD, WFTT and WFMA are recognized as high-tech enterprises in 2023 and enjoy a preferential incometax rate of 15% from January 1, 2023 to December 31, 2025. WFAM is recognized as a high-tech enterprise in 2021 and will enjoy apreferential income tax rate of 15% from January 1, 2021 to December 31, 2023. WFSC is recognized as a high-tech enterprise in2022 and will enjoy a preferential income tax rate of 15% from January 1, 2022 to December 31, 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, andwhose main business income accounting for more than 60% of the total income of the enterprise in the current year can pay thecorporate income tax at the tax rate of 15%. In the year of 2023, WFLD (Chongqing) paid its corporate income tax at the tax rate of15%.In 2023, WFLD (Wuhan), WFLD (Nanchang) was a qualified small and low-profit enterprises. According to the Announcement onFurther Supporting the Development of Small and Micro Enterprises and Individual Businesses Related to Tax Policies(Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation in 2023), the taxable income of smalland micro profit enterprises will be calculated at a reduced rate of 25%, and the enterprise income tax policy will be paid at a tax rateof 20%, which will be extended 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 | 6,343.24 | 51,818.51 |
Cash in bank | 2,241,980,351.17 | 2,304,848,889.90 |
Other Monetary funds | 32,785,004.73 | 84,651,222.35 |
Total | 2,274,771,699.14 | 2,389,551,930.76 |
Including: total amount of funds deposited overseas | 126,839,309.52 | 324,409,336.06 |
Other explanationThe ending balance of other monetary fund includes RMB 22,174,151.94 deposited in the bank acceptance deposit, Mastercardearnest money RMB 210,720.00, in-transit dividends RMB 1,309,380.00, IRD performance bond RMB 7,902,000.00, in-transit
foreign exchange fund RMB 1,184,752.79, and ETC freezing RMB 4,000.00. The in-transit dividends RMB 1,309,380.00 was aportion of the dividend distributed by Miracle Automation (002009), a trading financial asset held by the company, from 2017 to2023, which was not transferred to the company’s current account due to account issues.
2. Trading financial asset
In RMB
Item | Ending balance | Opening balance |
Financial assets measured at fair value and whose changes are included in current profit or loss | 2,391,487,144.96 | 2,718,820,654.87 |
Including: | ||
SNAT | 76,756,716.00 | 78,834,732.00 |
Miracle Automation | 71,073,900.00 | 66,693,600.00 |
Lifan Technology | 48,516.34 | |
Toyze Auto | 462,414.48 | |
Other debt and equity instrument investments | 2,243,656,528.96 | 2,572,781,392.05 |
Including: | ||
Total | 2,391,487,144.96 | 2,718,820,654.87 |
3. Note receivable
(1) Classification of notes receivable
In RMB
Item | Ending balance | Opening balance |
Trade acceptance bill | 144,976,174.84 | 135,559,024.27 |
Total | 144,976,174.84 | 135,559,024.27 |
(2) Classification of accrued bad debt reserve
In RMB
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debts reserve | Book value | Book value | Bad debts reserve | Book value | |||||
Amount | Ratio | Amount | Accrued ratio | Amount | Ratio | Amount | Accrued ratio | |||
Including: | ||||||||||
Note receivable with bad debt provision accrued on portfolio | 144,976,174.84 | 100.00% | 144,976,174.84 | 135,559,024.27 | 100.00% | 135,559,024.27 | ||||
Including: |
Portfolio 1: bank acceptance bill | ||||||||||
Portfolio 2: trade acceptance bill | 144,976,174.84 | 100.00% | 144,976,174.84 | 135,559,024.27 | 100.00% | 135,559,024.27 | ||||
Total | 144,976,174.84 | 100.00% | 144,976,174.84 | 135,559,024.27 | 100.00% | 135,559,024.27 |
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses:
□Applicable ?Not applicable
(3) Bad debt provision accrued, 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 period
In RMB
Item | Amount pledge at period-end |
Commercial acceptance bill | 97,820,000.00 |
Total | 97,820,000.00 |
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Note receivable actually charged off in the period
Nil
(7) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item | Amount transfer to account receivable at period-end |
Commercial acceptance bill | 4,270,595.02 |
Other explanationThe commercial acceptance bill that the Company transferred to the accounts receivable due to in 2018 the failure of the drawer toperform the agreement at the end of the period were the bills of the subsidiaries controlled by BD Petrochemical Group Co., Ltd. andthe bills accepted by BD Petrochemical Group Finance Co., Ltd. (hereinafter referred to as “BD bills”).
4. Account receivable
(1) By account age
In RMB
Aging | Ending book balance | Opening book balance |
Within one year (One year included) | 3,841,921,162.54 | 3,118,871,487.62 |
Including: within 6 months | 3,732,178,445.50 | 3,025,753,558.24 |
6 months to one year | 109,742,717.04 | 93,117,929.38 |
1-2 years | 26,336,964.64 | 19,350,208.92 |
2-3 years | 13,723,160.78 | 8,919,358.15 |
Over 3 years | 57,510,391.30 | 59,823,351.18 |
3-4 years | 5,607,074.80 | 20,264,074.06 |
4-5 years | 19,615,877.12 | 26,120,004.96 |
> 5 years | 32,287,439.38 | 13,439,272.16 |
Total | 3,939,491,679.26 | 3,206,964,405.87 |
(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 | 53,281,843.03 | 1.35% | 53,281,843.03 | 100.00% | 57,806,705.14 | 1.80% | 57,806,705.14 | 100.00% | ||
Including: | ||||||||||
Account receivable with bad debt provision accrued on portfolio | 3,886,209,836.23 | 98.65% | 28,669,878.03 | 0.74% | 3,857,539,958.20 | 3,149,157,700.73 | 98.20% | 21,667,523.48 | 0.69% | 3,127,490,177.25 |
Including: | ||||||||||
Total | 3,939,491,679.26 | 100.00% | 81,951,721.06 | 2.08% | 3,857,539,958.20 | 3,206,964,405.87 | 100.00% | 79,474,228.62 | 2.48% | 3,127,490,177.25 |
Bad debt provision accrued on single basis: 53,281,843.03
In RMB
Name | Openin balance | Ending balance | ||||
Book balance | Bad debt reserve | Book balance | Bad debt reserve | Accrued ratio | Accrued causes | |
Hubei Meiyang Auto Industry Co., Ltd. | 20,139,669.45 | 20,139,669.45 | 17,610,371.91 | 17,610,371.91 | 100.00% | Difficult to recover |
Hunan Leopaard Auto Co., Ltd. | 8,367,245.47 | 8,367,245.47 | 8,077,361.13 | 8,077,361.13 | 100.00% | Difficult to recover |
BD bills | 7,201,691.00 | 7,201,691.00 | 4,270,595.02 | 4,270,595.02 | 100.00% | Difficult to recover |
Linyi Zotye Automobile Components | 6,193,466.77 | 6,193,466.77 | 6,193,466.77 | 6,193,466.77 | 100.00% | Difficult to recover |
Manufacturing Co., Ltd. | ||||||
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 recover |
Brilliance Automotive Group Holdings Co., Ltd. | 3,469,091.33 | 3,469,091.33 | 3,469,091.33 | 3,469,091.33 | 100.00% | Difficult to recover |
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 recover |
Jiangsu Kawei Auto Industrial Group Co., Ltd. | 1,932,476.26 | 1,932,476.26 | 1,932,476.26 | 1,932,476.26 | 100.00% | Difficult to recover |
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 recover |
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 recover |
Other clients | 2,281,494.56 | 2,281,494.56 | 3,506,910.31 | 3,506,910.31 | 100.00% | Difficult to recover |
Total | 57,806,705.14 | 57,806,705.14 | 53,281,843.03 | 53,281,843.03 |
Bad debt provision Accrued on portfolio: 28,669,878.03
In RMB
Explanation on determining the basis for this portfolio:
The provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses:
□ Applicable ? Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrued | Collected or reversal | Charged off | Other | |||
Bad debt provision | 79,474,228.62 | 5,788,060.03 | 3,464,139.38 | 43,813.01 | 197,384.80 | 81,951,721.06 |
Total | 79,474,228.62 | 5,788,060.03 | 3,464,139.38 | 43,813.01 | 197,384.80 | 81,951,721.06 |
(4) Account receivable actually charged off in the Period
In RMB
Name | Ending balance | ||
Book balance | Bad debt reserve | Accrued ratio | |
Within 6 months | 3,730,857,043.84 | ||
6 months to one year | 108,718,559.21 | 10,871,855.93 | 10.00% |
1-2 years | 26,336,964.64 | 5,267,392.93 | 20.00% |
2-3 years | 12,944,398.96 | 5,177,759.59 | 40.00% |
Over 3 years | 7,352,869.58 | 7,352,869.58 | 100.00% |
Total | 3,886,209,836.23 | 28,669,878.03 |
Item | Amount charged off |
Account receivable actually charged off | 43,813.01 |
(5) Top five receivables and contract assets at ending balance by arrears party
In RMB
Name | Ending balance of account receivable | Ending balance of contract assets | Ending balance of account receivable and contract assets | Ratio in total ending balance of account receivables and contract assets | Ending balance of reserve for bad debts and contract assets |
RBCD | 686,424,501.80 | 17.43% | 1,017,817.82 | ||
Robert Bosch Company | 596,846,772.56 | 15.15% | 782,592.70 | ||
Client 3 | 337,776,101.99 | 8.57% | 1,651,960.47 | ||
Client 4 | 200,972,141.72 | 5.10% | 76,326.16 | ||
Client 5 | 127,691,257.56 | 3.24% | 7,633,344.34 | ||
Total | 1,949,710,775.63 | 49.49% | 11,162,041.49 |
5. Receivable financing
(1) Category of receivable financing
In RMB
Item | Ending balance | Opening balance |
Bill receivable- bank acceptance bill | 1,661,749,949.46 | 1,918,368,845.21 |
Total | 1,661,749,949.46 | 1,918,368,845.21 |
Other explanation:
During the management of enterprise liquidity, the company will discount or endorse transfers before the maturity of some bills, thebusiness model for managing bills receivable is to collect contractual cash flows and sell the financial asset, so it is classified asfinancial assets measured at fair value and whose changes are included in other comprehensive income, which is listed in receivablesfinancing.
(2) Notes receivable already pledged by the Company at period-end:
In RMB
Item | Amount pledge at period-end |
Bank acceptance bill | 568,256,134.85 |
Commercial acceptance bill | |
Total | 568,256,134.85 |
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item | Amount derecognized at period-end | Amount not derecognized at period-end |
Bank acceptance bill | 258,965,040.65 | |
Commercial acceptance bill |
Total | 258,965,040.65 |
(4) Receivable financing actually charged off in current period
Nil
(5) Increase/decrease of receivable financing and changes in fair value of receivable financing in currentperiod
Nil
(6) Other explanation
Nil
6. Other account receivables
In RMB
Item | Ending balance | Opening balance |
Dividend receivable | 147,000,000.00 | |
Other account receivables | 919,684,126.81 | 1,117,507,456.47 |
Total | 919,684,126.81 | 1,264,507,456.47 |
(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 |
Wuxi WFEC Catalyst Co., Ltd. | 147,000,000.00 | |
Total | 147,000,000.00 |
2) Important dividend receivable with account age over one year
3) Accrued of bad debt provision
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal in current period
5) Dividend receivable actually charged off in current period
(3) Other accounts receivable
1) By nature
In RMB
Nature | Ending book balance | Opening book balance |
Intercourse funds from units | 4,084,594.65 | 1,894,818.08 |
Cash deposit | 10,215,094.41 | 9,087,881.41 |
Staff loans and petty cash | 904,305.07 | 1,823,842.27 |
Social security and provident fund paid | 12,537,832.68 | 11,341,820.83 |
WFTR “platform trade” business portfolio | 2,542,263,370.70 | 2,741,499,131.95 |
Other | 38,770.10 | 66,663.56 |
Total | 2,570,043,967.61 | 2,765,714,158.10 |
2) By aging
In RMB
Aging | Ending book balance | Opening book balance |
Within one year (One year included) | 18,850,121.91 | 2,758,812,664.93 |
Within 6 months | 18,448,595.63 | 1,919,096,046.09 |
6 months to one year | 401,526.28 | 839,716,618.84 |
1-2 years | 2,544,896,026.07 | 1,358,405.20 |
2-3 years | 954,984.11 | 2,962,710.00 |
Over 3 years | 5,342,835.52 | 2,580,377.97 |
3-4 years | 4,524,432.51 | 1,987,937.97 |
4-5 years | 801,603.01 | 0.00 |
Over 5 years | 16,800.00 | 592,440.00 |
Total | 2,570,043,967.61 | 2,765,714,158.10 |
3) Accrued of 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 losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance on Jan. 1, 2023 | 4,106,646.90 | 1,644,100,054.73 | 1,648,206,701.63 | |
Balance of Jan. 1, 2023 in the period | ||||
Current accrued | 3,055,915.03 | 3,055,915.03 | ||
Current reversal | 977,386.61 | 977,386.61 | ||
Other changes | 74,610.75 | 74,610.75 | ||
Balance on Dec. 31, 2023 | 6,259,786.07 | 1,644,100,054.73 | 1,650,359,840.80 |
Classification basis and bad debt provision ratio for each stageChange of book balance of loss provision whose amount has major changes in the period
□ Applicable ? Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the period:
In RMB
Category | Opening balance | Change in current period | Ending balance | |||
Accrued | Collected or reversal | Charged off | Other | |||
Bad debt provision | 1,648,206,701.63 | 3,055,915.03 | 977,386.61 | 74,610.75 | 1,650,359,840.80 | |
Total | 1,648,206,701.63 | 3,055,915.03 | 977,386.61 | 74,610.75 | 1,650,359,840.80 |
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 accounts receivables | Ending balance of bad debt reserve |
WFTR “platform trade” business portfolio | See “Other explanation” | 2,542,263,370.70 | 1-2 years | 98.92% | 1,644,068,327.93 |
Robert Bosch Company | Intercourse | 2,500,307.00 | Within 1 | 0.10% |
funds from units | year | ||||
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 |
BYD | Deposit margin | 900,000.00 | With 1 year | 0.03% | |
Total | 2,548,028,427.70 | 99.14% | 1,646,433,077.93 |
Other explanation: 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 | 56,627,071.44 | 74.31% | 88,207,782.70 | 93.51% |
1-2 years | 17,692,490.92 | 23.22% | 5,066,837.28 | 5.37% |
2-3 years | 1,879,201.90 | 2.47% | 778,819.68 | 0.83% |
Over 3 years | 3,506.90 | 0.00% | 270,414.21 | 0.29% |
Total | 76,202,271.16 | 94,323,853.87 |
Explanation on 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
Enterprise | Prepayment ending balance | Proportion to the total ending balance of prepayments (%) |
State Grid Jiangsu Electric Power Co., Ltd. Wuxi Power Supply Branch | 11,142,648.70 | 14.62 |
AIDA ENGINEERING | 9,206,995.00 | 12.08 |
Daye Special Steel Co., Ltd | 5,838,762.94 | 7.66 |
CITIC Taifu Steel Trading Co., Ltd | 5,583,484.29 | 7.33 |
Shanghai Baogang Trading Co., Ltd | 3,382,034.68 | 4.44 |
Total | 35,153,925.61 | 46.13 |
8. Inventory
Whether the Company need to comply with disclosure requirements in the real estate industry:
No
(1) Category of inventory
In RMB
Item | Ending balance | Opening balance | ||||
Book balance | Inventory depreciation reserve | Book value | Book balance | Inventory depreciation reserve | Book value | |
Stock materials | 590,057,187.69 | 116,560,014.49 | 473,497,173.20 | 796,941,337.63 | 160,326,360.21 | 636,614,977.42 |
Goods in process | 463,097,639.20 | 30,595,290.34 | 432,502,348.86 | 437,653,321.23 | 31,641,606.69 | 406,011,714.54 |
Finished goods | 1,336,512,057.06 | 173,978,548.18 | 1,162,533,508.88 | 1,382,835,104.89 | 142,342,140.58 | 1,240,492,964.31 |
Total | 2,389,666,883.95 | 321,133,853.01 | 2,068,533,030.94 | 2,617,429,763.75 | 334,310,107.48 | 2,283,119,656.27 |
(2) 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 | 160,326,360.21 | 50,809,350.00 | 812,321.77 | 95,388,017.49 | 116,560,014.49 | |
Goods in process | 31,641,606.69 | 13,255,762.45 | 583,073.30 | 14,885,152.10 | 30,595,290.34 | |
Finished goods | 142,342,140.58 | 141,101,760.51 | 273,331.29 | 109,738,684.20 | 173,978,548.18 | |
Total | 334,310,107.48 | 205,166,872.96 | 1,668,726.36 | 220,011,853.79 | 321,133,853.01 |
① The net realizable value of inventory refers to the estimated selling price of inventory in daily activities, minus the estimatedcosts to 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 |
Cash on hand
Cash on hand | Accrued basis for inventory impairment provision | Specific basis for recognition |
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 | Goods in process completed in the Period and corresponding finished goods are realized sales in the Period |
Finished goods | Sales in the Period |
(3) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(4) Explanation of the current amortization amount of contract performance costNil
(5) Other credit investment maturing within one year
Nil
9. Other current assets
In RMB
Item | Ending balance | Opening balance |
Receivable export tax rebates | 9,103,488.70 | 14,325,020.52 |
VAT refund receivable | 114,079,600.14 | 25,444,657.63 |
Prepaid taxes and VAT retained | 173,908,288.11 | 364,556,192.43 |
Input tax to be deducted and certification | 2,162,292.69 | 1,192,752.68 |
Other | 26,655,713.47 | 25,028,577.98 |
Total | 325,909,383.11 | 430,547,201.24 |
10. Other equity instrument investment
In RMB
Item | Ending balance | Opening balance | Gains recognized in other comprehensive income for the current period | Losses recognized in other comprehensive income for the current period | Accumulated gains recognized in other comprehensive income at the end of this period | Accumulated losses recognized in other comprehensive income at the end of this period | Dividend income recognized in this period | 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 |
Sub-item disclosure of current non-trading equity instrument investments
In RMB
Item | Dividends income | Accumulated gains | Accumulated losses | 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 Xichang Microchip Semi-Conductor | Non-trading equity instrument investments | Not applicable | ||||
Other | Non-trading equity instrument investments | Not applicable |
11. Long-term equity investment
In RMB
Invested entity | Opening balance (book value) | Opening balance of impairment provision | 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 | Impairment Accrued | Other | |||||
I. Joint venture | ||||||||||||
II. Associated enterprise | ||||||||||||
WFEC | 824,528,809.89 | 196,588,496.35 | 11,994,541.20 | 117,600,000.00 | 915,511,847.44 | |||||||
RBCD | 3,659,761,310.97 | 1,029,151,455.57 | 1,673,605,474.71 | 3,015,307,291.83 | ||||||||
Zhonglian Electronic | 1,559,413,314.05 | 408,088,732.68 | 282,000,000.00 | 1,685,502,046.73 | ||||||||
WFPM | 54,829,812.51 | -11,779,921.19 | -1,585,695.67 | 41,464,195.65 | ||||||||
Changchun Xuyang | 9,621,734.83 | -538,911.04 | 9,082,823.79 | |||||||||
PrecorsGmbH | 5,517,924.56 | 2,875,994.14 | -197,141.96 | 390,712.88 | 8,587,489.62 | |||||||
Auto Link | 169,145,202.15 | 10,247,396.31 | 3,288,259.15 | 182,680,857.61 | ||||||||
Lezhuo Bowei | 110,000,000.00 | -20,489,295.60 | -13,750.00 | 89,496,954.40 | ||||||||
Subtotal | 6,282,818,108.96 | 112,875,994.14 | 1,611,070,811.12 | 13,697,104.68 | 2,073,205,474.71 | 376,962.88 | 5,947,633,507.07 | |||||
Total | 6,282,818,108.96 | 112,875,994.14 | 1,611,070,811.12 | 13,697,104.68 | 2,073,205,474.71 | 376,962.88 | 5,947,633,507.07 |
Note::
Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. was renamed into Wuxi Weifu Precision Machinery ManufacturingCompany Limited on Feburary 28, 2024.Explanation on those holding less than 20% of the voting rights but with significant influence:
Wuxi Chelian Tianxia Information Technology Co., Ltd. (hereinafter referred to as “Auto Link”)The Company holds 9.6372% equity of Auto Link, and appointed a director to Auto Link. Though the representative, the Companycan participate in the operation policies formulation of Auto Link, and thus exercise a significant influence over Auto Link.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
12. Other non-current financial assets
In RMB
Item | Ending balance | Opening balance |
Guolian Securities | 1,084,000.00 | 186,608,914.00 |
Investments in other debt instruments and equity instruments held for more than one year | 803,266,120.06 | 1,140,000,000.00 |
Total | 804,350,120.06 | 1,326,608,914.00 |
Other explanation: Nil
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 | 97,691,776.27 | 97,691,776.27 | ||
2.Current increased | ||||
(1) Outsourcing | ||||
(2) Inventory\fixed assets\construction in process transfer-in | ||||
(3) Increased by combination | ||||
3.Current decreased | 2,364,090.24 | 2,364,090.24 | ||
(1) Disposal | 2,364,090.24 | 2,364,090.24 | ||
(2) Other transfer-out | ||||
4.Ending balance | 95,327,686.03 | 95,327,686.03 | ||
II. Accumulated depreciation and accumulated amortization | ||||
1.Opening balance | 48,394,906.54 | 48,394,906.54 | ||
2.Current increased | 2,299,230.53 | 2,299,230.53 | ||
(1) Accrued or amortization | 2,299,230.53 | 2,299,230.53 | ||
3.Current decreased | 2,293,167.53 | 2,293,167.53 | ||
(1) Disposal | 2,293,167.53 | 2,293,167.53 | ||
(2) Other transfer-out | ||||
4.Ending balance | 48,400,969.54 | 48,400,969.54 | ||
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 | 46,926,716.49 | 46,926,716.49 | ||
2.Opening Book value | 49,296,869.73 | 49,296,869.73 |
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
(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 assets
In RMB
Item | Ending balance | Opening balance |
Fixed assets | 3,969,574,102.87 | 3,769,984,185.94 |
Disposal of fixed assets | ||
Total | 3,969,574,102.87 | 3,769,984,185.94 |
(1) Fixed assets
In RMB
Item | House and Building | Machinery equipment | Transportation equipment | Electronic and other equipment | Land | Total |
I. Original book value: | ||||||
1.Opening balance | 1,934,526,060.96 | 4,613,504,836.29 | 38,612,263.18 | 1,046,301,287.16 | 30,483,292.05 | 7,663,427,739.64 |
2.Current increased | 89,391,390.28 | 427,272,709.17 | 6,381,131.81 | 210,102,119.29 | 733,147,350.55 | |
(1) Purchase | 364,604.28 | 9,056,652.41 | 14,344,915.25 | 23,766,171.94 | ||
(2) Construction in progress transfer-in | 89,026,786.00 | 418,216,056.76 | 6,381,131.81 | 195,757,204.04 | 709,381,178.61 | |
(3)Increased by combination | ||||||
3.Current decreased | 955,274.75 | 59,944,842.11 | 3,200,574.01 | 38,613,164.29 | 102,713,855.16 | |
(1) Disposal or scrapping | 955,274.75 | 59,944,842.11 | 3,200,574.01 | 38,613,164.29 | 102,713,855.16 | |
4.Conversion of foreign currency financial statement | 9,145,379.18 | 26,069,448.48 | 246,984.23 | 18,609,850.23 | 1,792,007.08 | 55,863,669.20 |
5.Ending 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 |
II. Accumulated depreciation | ||||||
1.Opening balance | 536,810,138.49 | 2,470,972,225.66 | 21,621,368.25 | 664,099,659.92 | 3,693,503,392.32 |
2.Current increased | 65,701,668.30 | 306,039,806.95 | 2,743,926.07 | 153,201,005.59 | 527,686,406.91 | |
(1) Accrued | 65,701,668.30 | 306,039,806.95 | 2,743,926.07 | 153,201,005.59 | 527,686,406.91 | |
3.Current decreased | 636,001.26 | 53,285,381.97 | 1,358,113.33 | 26,616,861.94 | 81,896,358.50 | |
(1) Disposal or scrapping | 636,001.26 | 53,285,381.97 | 1,358,113.33 | 26,616,861.94 | 81,896,358.50 | |
4.Conversion of foreign currency financial statement | 3,304,279.62 | 17,949,887.19 | 1,105.28 | 14,270,712.69 | 35,525,984.78 | |
5.Ending balance | 605,180,085.15 | 2,741,676,537.83 | 23,008,286.27 | 804,954,516.26 | 4,174,819,425.51 | |
III. Depreciation reserves | ||||||
1.Opening balance | 14,097,320.49 | 148,903,639.01 | 73,319.90 | 21,710,795.11 | 15,155,086.87 | 199,940,161.38 |
2.Current increased | 502,006.79 | 502,006.79 | ||||
(1) Accrued | 502,006.79 | 502,006.79 | ||||
3.Current decreased | 5,366.68 | 1,046,191.48 | 163,374.04 | 1,214,932.20 | ||
(1) Disposal or scrapping | 5,366.68 | 1,046,191.48 | 163,374.04 | 1,214,932.20 | ||
4.Conversion of foreign currency financial statement | 828,599.73 | 3,644,352.76 | 740,272.36 | 890,915.03 | 6,104,139.88 | |
5.Ending balance | 14,920,553.54 | 152,003,807.08 | 73,319.90 | 22,287,693.43 | 16,046,001.90 | 205,331,375.85 |
IV. Book value | ||||||
1.Ending 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.Opening Book value | 1,383,618,601.98 | 1,993,628,971.62 | 16,917,575.03 | 360,490,832.13 | 15,328,205.18 | 3,769,984,185.94 |
(2) Temporarily idle fixed assets: Nil
(3) Fixed assets acquired by operating lease: Nil
(4) Fixed assets without property certification held
In RMB
Item | Book value | Reasons for without the property certification |
Plant and office building of WFCA | 30,437,612.45 | Still in process of relevant property procedures |
(5) Impairment testing of fixed assets
□Applicable ?Not applicable
(6) Disposal of fixed assets
Other explanation: Nil
15. Construction in progress
In RMB
Item | Ending balance | Opening balance |
Construction in progress | 564,605,931.90 | 509,105,587.49 |
Total | 564,605,931.90 | 509,105,587.49 |
(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 | 148,242,724.89 | 148,242,724.89 | 41,493,029.41 | 41,493,029.41 | ||
Lot 103 phase VI | 7,509,742.36 | 7,509,742.36 | ||||
Production line and equipment under installation and debugging | 391,286,034.94 | 184,615.38 | 391,101,419.56 | 386,221,995.02 | 386,221,995.02 | |
Sporadic construction and installation projects | 5,265,721.92 | 5,265,721.92 | 41,326,068.85 | 41,326,068.85 | ||
Software and system under installation and debugging | 12,486,323.17 | 12,486,323.17 | 40,064,494.21 | 40,064,494.21 | ||
Total | 564,790,547.28 | 184,615.38 | 564,605,931.90 | 509,105,587.49 | 509,105,587.49 |
(2) Changes of major construction in progress
In RMB
Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the 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 | 41,493,029.41 | 106,749,695.48 | 148,242,724.89 | 35.06% | 35.06% | The Company’s accumulated funds | ||||||
Lot 103 phase VI | 7,509,742.36 | 7,509,742.36 | 9% | 9% | The Company’s accumulated funds | |||||||
Total | 41,493,029.41 | 114,259,437.84 | 155,752,467.25 |
(3) The provision for impairment of construction projects
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 assets
(1) Right-of-use assets
In RMB
Item | Building | Mechanical equipment | Total |
I. Original book value: | |||
1.Opening balance | 34,416,049.86 | 25,021,445.63 | 59,437,495.49 |
2.Current increased | 19,076,134.73 | 1,030,006.72 | 20,106,141.45 |
(1)Increased lease | 19,076,134.73 | 1,030,006.72 | 20,106,141.45 |
3.Current decreased | 533,688.55 | 533,688.55 | |
(1) Disposal | 533,688.55 | 533,688.55 | |
4. Conversion of foreign currency financial statement | 1,454,205.70 | 948,261.18 | 2,402,466.88 |
5.Ending balance | 54,412,701.74 | 26,999,713.53 | 81,412,415.27 |
II. Accumulated depreciation | |||
1.Opening balance | 11,035,938.99 | 6,536,456.12 | 17,572,395.11 |
2.Current increased | 9,820,732.13 | 5,049,925.02 | 14,870,657.15 |
(1) Accrued | 9,820,732.13 | 5,049,925.02 | 14,870,657.15 |
3.Current decreased | 533,688.55 | 533,688.55 | |
(1) Disposal | 533,688.55 | 533,688.55 | |
4. Conversion of foreign currency financial statement | 382,978.91 | 287,599.80 | 670,578.71 |
5.Ending balance | 20,705,961.48 | 11,873,980.94 | 32,579,942.42 |
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 | 33,706,740.26 | 15,125,732.59 | 48,832,472.85 |
2.Opening Book value | 23,380,110.87 | 18,484,989.51 | 41,865,100.38 |
(2) Impairment testing of right-of-use assets
□Applicable ?Not applicable
Other explanation: Nil
17. Intangible assets
(1) Intangible assets
In RMB
Item | Land use right | Patented and non patented technologies | Computer software | Trademark and trademark license | Total |
I. Original book value | |||||
1.Opening balance | 381,867,130.62 | 247,735,742.07 | 156,331,661.37 | 41,597,126.47 | 827,531,660.53 |
2.Current increased | 5,000,000.00 | 58,288,088.04 | 63,288,088.04 | ||
(1) Purchase | 3,880,588.41 | 3,880,588.41 |
(2) Internal R&D | |||||
(3) Increased by combination | |||||
(4)Transfer from construction in progress | 54,407,499.63 | 54,407,499.63 | |||
(5) Shareholders’ capital contribution | 5,000,000.00 | 5,000,000.00 | |||
3.Current decreased | 8,922,112.00 | 894,373.20 | 9,816,485.20 | ||
(1)Disposal or scrapping | 8,922,112.00 | 894,373.20 | 9,816,485.20 | ||
4.Conversion of foreign currency financial statement | 12,457,935.72 | 1,138,252.40 | 13,596,188.12 | ||
5.Ending balance | 372,945,018.62 | 265,193,677.79 | 214,863,628.61 | 41,597,126.47 | 894,599,451.49 |
II. Accumulated amortization | |||||
1.Opening balance | 112,319,506.81 | 82,143,152.44 | 118,642,946.06 | 9,709,000.00 | 322,814,605.31 |
2.Current increased | 8,106,024.88 | 22,663,087.20 | 42,059,366.96 | 72,828,479.04 | |
(1)Accrued | |||||
(2)Amortization | 8,106,024.88 | 22,663,087.20 | 42,059,366.96 | 72,828,479.04 | |
3.Current decreased | 7,410,097.90 | 894,373.20 | 8,304,471.10 | ||
(1)Disposal | 7,410,097.90 | 894,373.20 | 8,304,471.10 | ||
4.Conversion of foreign currency financial statement | 4,816,986.79 | 493,908.13 | 5,310,894.92 | ||
5.Ending balance | 113,015,433.79 | 109,623,226.43 | 160,301,847.95 | 9,709,000.00 | 392,649,508.17 |
III. Depreciation reserves | |||||
1.Opening balance | 442,167.30 | 16,646,900.00 | 17,089,067.30 | ||
2.Current increased | |||||
(1)Accrued | |||||
3.Current decreased | |||||
(1)Disposal | |||||
4.Conversion of foreign currency financial statement | 25,993.49 | 25,993.49 | |||
5.Ending balance | 468,160.79 | 16,646,900.00 | 17,115,060.79 | ||
IV. Book value | |||||
1.Ending Book value | 259,929,584.83 | 155,570,451.36 | 54,093,619.87 | 15,241,226.47 | 484,834,882.53 |
2.Opening Book value | 269,547,623.81 | 165,592,589.63 | 37,246,548.01 | 15,241,226.47 | 487,627,987.92 |
The proportion of intangible assets formed through internal R&D of the company to the balance of intangible assets at the end ofthis period.
(2) Land use right without property certification held
Other explanation: Nil
(3) Impairing test of intangible assets
□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 WFTT | 1,784,086.79 | 1,784,086.79 | ||||
Merged with Borit | 235,898,288.93 | 13,067,389.94 | 248,965,678.87 | |||
Total | 237,682,375.72 | 13,067,389.94 | 250,749,765.66 |
(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 | 125,422,037.41 | 3,010,909.05 | 128,432,946.46 | |||
Total | 125,422,037.41 | 3,010,909.05 | 128,432,946.46 |
(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 assets related to the merger of WFTL’s goodwill; The management made it clear that this asset group will be used and operated independently of other assets, and will generate cash inflows independently | Automotive intake system product division; Category of asset group output products | Yes |
Borit | Long term assets 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 assets, and will generate cash inflows independently | Other automotive parts divisions; Category of asset group output products | Yes |
Changes in asset group or asset portfolioOther 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 cash flows; For asset groups with no signs ofimpairment, the company determines the recoverable amount of the asset group based on the present value of its expected futurenet cash flows.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value?Applicable □Not applicable
In RMB
Item | Book value | Recoverable amount | Depreciation amount | Method of determining fair value and disposal expense | Key parameters | Basis to determine key parameters |
Borit | 350,313,045.41 | 224,891,008.00 | 125,422,037.41 | Market method | Market multiplier | Average value of comparable |
company | ||||||
Total | 350,313,045.41 | 224,891,008.00 | 125,422,037.41 |
The recoverable amount is determined based on the present value of expected future cash flows?Applicable □Not applicable
In RMB
Item | Book value | Recoverable amount | Depreciation amount | The year limited of the prediction period | Key parameters for the prediction period | Key parameters for the stable period | Basis for determining key parameters for the stable period |
WFTT | 178,481,237.44 | 230,519,591.10 | 5 years | Income growth rate: 3% -16%; Profit margin: 3% -5%; Discount rate is 12.88% | Income growth rate: 0%; Profit margin: 4.33%; Discount rate is 12.88% | Based on prudence, consider a stable period of income growth of 0% | |
Total | 178,481,237.44 | 230,519,591.10 |
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 year: Nil
(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 Period | Other decrease | Ending balance |
Decoration expense, etc. | 28,586,235.84 | 3,490,177.61 | 7,361,781.35 | 24,714,632.10 | |
Total | 28,586,235.84 | 3,490,177.61 | 7,361,781.35 | 24,714,632.10 |
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB
Item | Ending balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Unrealized profit from insider transactions | 58,038,282.16 | 10,362,240.10 | 43,939,348.59 | 8,056,161.37 |
Deductible loss | 1,021,893,078.26 | 153,283,961.74 | 942,706,826.57 | 142,138,790.82 |
Bad debt provision | 82,811,787.71 | 12,593,312.59 | 79,078,766.93 | 11,972,961.27 |
Inventory depreciation reserve | 286,016,361.30 | 45,423,673.61 | 299,752,548.93 | 46,412,618.47 |
Depreciation reserves of fixed assets | 95,427,114.11 | 16,503,823.10 | 70,008,612.21 | 12,701,929.36 |
Depreciation reserve of construction in progress | 184,615.38 | 27,692.31 | ||
Depreciation reserves of intangible assets | 16,646,900.00 | 2,497,035.00 | 16,646,900.00 | 2,497,035.00 |
Deferred income | 182,861,766.95 | 27,634,668.38 | 222,850,907.79 | 33,668,167.75 |
Payable salary, accrued expenses etc. | 787,779,009.37 | 148,065,821.58 | 849,436,667.00 | 139,593,056.66 |
Depreciation assets, amortization difference | 21,482,750.97 | 3,311,127.10 | 25,570,352.82 | 4,153,581.52 |
Equity incentive | 3,066,582.11 | 459,987.32 | ||
Lease liability | 50,855,198.17 | 11,460,004.56 | 14,572,903.92 | 2,812,926.34 |
Changes in fair value | 17,858,685.16 | 2,678,802.77 | ||
Total | 2,621,855,549.54 | 433,842,162.84 | 2,567,630,416.87 | 404,467,215.88 |
(2) Deferred income tax liabilities that are not offset
In RMB
Item | Ending balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
The difference between the fair value and taxation basis of WFTT assets in a merger not under the same control | 9,724,500.55 | 1,458,675.07 | 10,192,264.15 | 1,528,839.60 |
The difference between the fair value and taxation basis of IRD assets in a merger not under the same control | 54,330,413.17 | 11,952,690.89 | 61,131,061.24 | 13,448,833.47 |
The difference between the fair value and taxation basis of Borit assets in a merger not under the same control | 19,310,735.89 | 4,827,683.93 | 21,378,918.49 | 5,344,729.59 |
The difference between the fair value and taxation basis of VH business in a merger not under the same control | 53,064,614.54 | 12,735,507.49 | 59,291,649.88 | 14,229,995.98 |
Change in fair value of transaction financial asset | 8,339,996.55 | 1,259,587.67 | 161,415,403.78 | 24,226,534.89 |
Accelerated depreciation of fixed assets | 761,694,832.59 | 116,424,109.44 | 700,548,497.31 | 107,631,856.23 |
Right-of-use assets | 48,832,472.85 | 11,023,076.15 | 13,227,441.18 | 2,578,204.66 |
Total | 955,297,566.14 | 159,681,330.64 | 1,027,185,236.03 | 168,988,994.42 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax assets | 121,929,207.77 | 311,912,955.07 | 128,839,443.43 | 275,627,772.45 |
Deferred income tax liabilities | 121,929,207.77 | 37,752,122.87 | 128,839,443.43 | 40,149,550.99 |
(4) Details of unrecognized deferred income tax assets
In RMB
Item | Ending balance | Opening balance |
Bad debt reserve | 1,649,499,774.15 | 1,648,602,163.32 |
Inventory depreciation reserve | 35,117,491.71 | 34,557,558.55 |
Loss from subsidiary | 845,349,190.11 | 529,884,134.82 |
Depreciation reserves of fixed assets | 109,904,261.74 | 129,931,549.17 |
Depreciation reserves of intangible assets | 468,160.79 | 442,167.30 |
Other equity instrument investment | 13,600,000.00 | 13,600,000.00 |
Wages payable, withholding expense, etc. | 4,572,812.40 | |
Total | 2,658,511,690.90 | 2,357,017,573.16 |
(5) Deductible losses of unrecognized deferred income tax assets expired in following years
In RMB
Maturity year | Ending amount | Opening amount | Note |
2023 | 2,380,501.89 | Operating loss occurs in domestic subsidiaries | |
2024 | 3,792,427.29 | 12,087,441.12 | Operating loss occurs in domestic subsidiaries |
2025 | 12,140,693.54 | 12,140,693.54 | Operating loss occurs in domestic subsidiaries |
2026 | 46,418,486.84 | 46,418,486.83 | Operating loss occurs in domestic subsidiaries |
2027 | 126,802,486.76 | 160,833,781.13 | Operating loss occurs in domestic subsidiaries |
2028 and the following years | 101,104,099.31 | Operating loss occurs in domestic subsidiaries | |
No expiration date | 555,090,996.37 | 296,023,230.31 | Operating loss occurs in overseas subsidiaries |
Total | 845,349,190.11 | 529,884,134.82 |
21. Other non-current assets
In RMB
Item | Ending balance | Opening balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Engineering equipment paid in advance | 232,894,913.95 | 232,894,913.95 | 239,775,014.10 | 239,775,014.10 | ||
Contract acquisition cost | 11,333,809.10 | 11,333,809.10 | 19,855,422.27 | 19,855,422.27 | ||
Large deposit certificates with a maturity of more than one year | 1,112,512,500.00 | 1,112,512,500.00 | 220,000,000.00 | 220,000,000.00 | ||
Total | 1,356,741,223.05 | 1,356,741,223.05 | 479,630,436.37 | 479,630,436.37 |
22. Assets 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 | 22,174,151.94 | 22,174,151.94 | Cash deposit | Notes pledge for bank acceptance | 24,368,385.65 | 24,368,385.65 | Cash deposit | Notes pledge for bank acceptance |
Bill receivable | 97,820,000.00 | 97,820,000.00 | Pledge | Notes pledge for bank acceptance | 82,908,186.94 | 82,908,186.94 | Pledge | Notes pledge for bank acceptance |
Monetary funds | 7,902,000.00 | 7,902,000.00 | Cash deposit | IRD performance bond | 7,487,250.00 | 7,487,250.00 | Cash deposit | IRD performance bond |
Monetary funds | 210,720.00 | 210,720.00 | Cash deposit | Cash deposit for Mastercard | 199,660.00 | 199,660.00 | Cash deposit | Cash deposit for Mastercard |
Monetary funds | 4,000.00 | 4,000.00 | Cash deposit | ETC freezing | 5,000.00 | 5,000.00 | Cash deposit | ETC freezing |
Monetary funds | 18,840,000.00 | 18,840,000.00 | Cash deposit | Forex Contracts USD Margin | ||||
Monetary funds | 180,000.00 | 180,000.00 | Freezing | Court freezing | ||||
Receivables financing | 568,256,134.85 | 568,256,134.85 | Cash deposit | Notes pledge for bank acceptance | 530,337,600.45 | 530,337,600.45 | Cash deposit | Notes pledge for bank acceptance |
Account receivable | 16,201,589.48 | 14,581,430.53 | Cash deposit | Pledge to obtain loans | ||||
Total | 712,568,596.27 | 710,948,437.32 | 664,326,083.04 | 664,326,083.04 |
23. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item | Ending balance | Opening balance |
Guaranteed loan | 3,000,000.00 | 89,074,800.00 |
Credit loan | 818,592,983.28 | 3,511,504,373.65 |
Factory financing | 16,201,589.48 | |
Accrued interest | 1,094,984.75 | 3,797,354.17 |
Total | 838,889,557.51 | 3,604,376,527.82 |
(2) Overdue short-term loans without payment
The total amount of overdue and unpaid short-term loans at the end of this period is 0.00 yuan
24. Derivative financial liabilities
In RMB
Item | Ending balance | Opening balance |
Forward settlement and sales of foreign exchange | 747,115.75 | |
Total | 747,115.75 |
25. Note payable
(1) Note payable
In RMB
Category | Ending balance | Opening balance |
Bank acceptance bill | 1,759,062,642.60 | 1,411,089,606.00 |
Total | 1,759,062,642.60 | 1,411,089,606.00 |
Other explanation:
To issue the above-mentioned bank acceptance bill, the Company paid a deposit of 22,174,151.94 yuan, pledge notes receivableand accounts receivable financing of 660,076,134.85 yuan.
(2) The total amount of unpaid notes receivable at the end of the period is 0 yuan.
26. Account payable
(1) Account payable
In RMB
Item | Ending balance | Opening balance |
Operating expenses such as labor or goods payable | 3,547,366,822.23 | 3,202,009,901.75 |
Accounts payable for engineering equipment | 121,483,601.06 | 252,591,121.85 |
Total | 3,668,850,423.29 | 3,454,601,023.60 |
(2) Significant accounts payable over one year or overdue
Other explanation: Nil
27. Other account payable
In RMB
Item | Ending balance | Opening balance |
Other accounts payable | 108,893,486.63 | 198,990,948.23 |
Total | 108,893,486.63 | 198,990,948.23 |
(1) Interest payable
Nil
(2) Dividend payable
Nil
(3) Other account payable
1) By nature
In RMB
Item | Ending balance | Opening balance |
Deposit and margin | 13,422,590.66 | 15,452,400.65 |
Social insurance and reserves funds that withholding | 1,282,686.66 | 1,967,741.92 |
Intercourse funds of unit | 25,512,145.98 | 25,512,145.98 |
Restricted stock repurchase obligations | 63,567,420.00 | 138,495,060.00 |
Payable unpaid investment funds | 13,308,176.65 | |
Other | 5,108,643.33 | 4,255,423.03 |
Total | 108,893,486.63 | 198,990,948.23 |
2) Significant other payable over one year or overdue
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 |
Restricted stock repurchase business | 63,567,420.00 | Restricted stock repurchase business |
Total | 82,593,420.00 |
28. Accounts received in advance
(1) Accounts received in advance
In RMB
Item | Ending balance | Opening balance |
Within 1 year | 2,911,439.65 | 3,633,878.33 |
Total | 2,911,439.65 | 3,633,878.33 |
(2) Significant accounts receivable in advance whose aging is over 1 year or overdue: Nil
29. Contract liabilities
In RMB
Item | Ending balance | Opening balance |
Within one year | 63,409,595.72 | 60,916,157.84 |
1-2 years | 3,625,754.55 | 31,275,903.90 |
2-3 years | 8,677,954.57 | 1,518,759.78 |
Over three years | 1,973,576.40 | 1,139,261.71 |
Total | 77,686,881.24 | 94,850,083.23 |
30. Wage payable
(1) Wage payable
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
I. Short-term compensation | 241,874,758.99 | 1,360,126,274.45 | 1,333,519,922.47 | 268,481,110.97 |
II. Post-employment welfare- defined contribution plans | 27,678,116.81 | 217,004,551.50 | 216,890,672.01 | 27,791,996.30 |
III. Dismissed welfare | 973,200.33 | 1,317,459.95 | 1,326,154.17 | 964,506.11 |
IV. Incentive funds paid within one year | 30,740,000.00 | 9,475,043.06 | 22,015,043.06 | 18,200,000.00 |
V. Other short-term welfare-Housing subsidies, employee benefits and welfare funds | 16,168,310.11 | 4,604,208.16 | 1,399,779.09 | 19,372,739.18 |
Total | 317,434,386.24 | 1,592,527,537.12 | 1,575,151,570.80 | 334,810,352.56 |
① Explanation of the current increase in incentive funds paid within one year:
The incentive fund paid within one year has increased by 9,475,043.06 yuan in the current period, which is due to the reclassificationof long-term employee compensation payable to employee compensation payable, the reclassification amount is determined based onthe company's future payment plan.
②Explanation of the dismissed welfare
Dismissal benefits refer to the employee compensation payable formed by the internal retirement plan implemented by the company,the expected amount to be paid in the following year is reported under the undergraduate project.
(2) Short-term compensation
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Wages, bonuses, allowances and subsidies | 228,262,797.86 | 1,109,739,091.02 | 1,083,836,037.69 | 254,165,851.19 |
2. Welfare for workers and staff | 77,988,085.29 | 77,988,085.29 | ||
3. Social insurance | 279,543.63 | 58,086,131.45 | 58,042,437.08 | 323,238.00 |
Including: Medical insurance | 242,824.57 | 45,982,995.55 | 45,957,179.46 | 268,640.66 |
Work injury insurance | 27,398.20 | 6,521,781.05 | 6,508,696.96 | 40,482.29 |
Maternity insurance | 9,320.86 | 5,581,354.85 | 5,576,560.66 | 14,115.05 |
4. Housing accumulation fund | 785,727.00 | 84,368,651.34 | 84,284,320.34 | 870,058.00 |
5. Labor union expenditure and personnel education expense | 9,960,112.99 | 16,258,839.42 | 16,482,847.27 | 9,736,105.14 |
Other short-term compensation - social security | 2,586,577.51 | 13,685,475.93 | 12,886,194.80 | 3,385,858.64 |
Total | 241,874,758.99 | 1,360,126,274.45 | 1,333,519,922.47 | 268,481,110.97 |
(3) Define contribution plans
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Basic endowment premium | 6,829,377.95 | 166,179,217.39 | 164,485,029.84 | 8,523,565.50 |
2. Unemployment insurance | 36,478.41 | 4,130,074.00 | 4,119,344.29 | 47,208.12 |
3. Enterprise annuity | 20,812,260.45 | 46,695,260.11 | 48,286,297.88 | 19,221,222.68 |
Total | 27,678,116.81 | 217,004,551.50 | 216,890,672.01 | 27,791,996.30 |
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 assets when occurs. Found more of enterprise annuity in Note XVIII-4 “Annuityplan”.
31. Tax payable
In RMB
Item | Ending balance | Opening balance |
Value-added tax | 8,011,069.82 | 27,961,474.84 |
Corporation income tax | 30,183,553.14 | 7,847,731.79 |
Individual income tax | 7,904,270.96 | 6,846,289.60 |
City maintaining & construction tax | 568,820.85 | 1,546,043.92 |
Educational surtax | 410,526.96 | 1,105,937.33 |
Other (including stamp tax and local funds) | 9,502,840.76 | 9,278,838.05 |
Total | 56,581,082.49 | 54,586,315.53 |
32. Non-current liabilities due within one year
In RMB
Item | Ending balance | Opening balance |
Long-term borrowings due within one year | 24,700,000.00 | 2,000,000.00 |
Lease payments due within one year | 13,122,001.66 | 12,044,793.34 |
Interest payable | 262,319.44 | 240,555.56 |
Total | 38,084,321.10 | 14,285,348.90 |
33. Other current liabilities
In RMB
Item | Ending balance | Opening balance |
Rebate payable | 253,258,241.31 | 201,734,082.52 |
Pending sales tax | 3,881,667.29 | 8,815,298.56 |
Undue bill endorsed/discounted | 1,214,398.69 | |
Total | 257,139,908.60 | 211,763,779.77 |
Changes in short-term bonds payable: Nil
34. Long-term borrowings
(1) Category of long-term borrowings
In RMB
Item | Ending balance | Opening balance |
Credit loan | 299,800,000.00 | 238,000,000.00 |
Total | 299,800,000.00 | 238,000,000.00 |
35. Lease liability
In RMB
Item | Ending balance | Opening balance |
Lease payments | 37,733,196.51 | 31,589,277.20 |
Total | 37,733,196.51 | 31,589,277.20 |
Other explanation: Nil
36. Long-term account payable
In RMB
Item | Ending balance | Opening balance |
Long-term account payable | 9,770,000.00 | 12,520,000.00 |
Special accounts payable | 18,265,082.11 | 18,265,082.11 |
Total | 28,035,082.11 | 30,785,082.11 |
(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 (2008) | 2,750,000.00 | |
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2009) | 1,030,000.00 | 1,030,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ③) Financial support funds (2010) | 960,000.00 | 960,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ④) Financial support funds (2011) | 5,040,000.00 | 5,040,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ⑤) Financial support funds (2013) | 2,740,000.00 | 2,740,000.00 |
Total | 9,770,000.00 | 12,520,000.00 |
Other explanation:
Note to long-term accounts payableNote ①: 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 November 17, 2008 to November17, 2023. 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 October 27, 2009 to October 27,2024. 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 December 27, 2010 to December 27,2025. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note 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 28, 2011 to December 28,2026. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ⑤: 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 December 18,2028. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.
(2) Special accounts payable
In RMB
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 losses from lessee 1.4416 million yuan in total. The above compensation was received inlast period and is making up for the losses from lessee, and the above lands and property have not been collected up to December31, 2023.
37. Long-term wages payable
(1) Long-term wages payable
In RMB
Item | Ending balance | Opening balance |
I.Post-employment benefits - Defined benefit plan net liabilities | 21,238,891.62 | 20,380,744.73 |
II. Dismiss welfare | 12,926,873.35 | 12,028,538.66 |
III. Other long-term welfare | 95,678,717.83 | 121,683,760.89 |
Total | 129,844,482.80 | 154,093,044.28 |
(2) Changes in defined benefit plan
Present value of defined benefit plan
In RMB
Item | Current period | Last period |
I. Opening balance | 20,380,744.73 | 19,594,011.39 |
II. Cost of defined benefit plan booked into current profit and loss | 783,750.58 | 38,706.27 |
1.Current service cost | 783,750.58 | 38,706.27 |
III. Cost of defined benefit plan booked into other comprehensive income | 1,664,679.09 | 399,165.06 |
1.Actuarial gains (losses are represented by “-”) | 1,664,679.09 | 399,165.06 |
IV. Other changes | -1,590,282.78 | 348,862.01 |
1.Welfare paid | -2,780,181.37 | -345,481.69 |
2.Translation difference of foreign currency statements | 1,189,898.59 | 694,343.70 |
V. Ending balance | 21,238,891.62 | 20,380,744.73 |
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 liabilities.
38. Estimated debts
In RMB
Item | Ending balance | Opening balance | Formation cause |
Product quality assurance | 26,946,035.59 | 8,695,322.61 | |
Payable rebates | 10,709,925.00 | ||
Investment losses in joint ventures | 13,750.00 | ||
Environmental protection commitment | 301,008.27 | 1,150,543.24 | |
Pending dispute and litigation | 59,459.66 | 246,653.02 | |
Total | 38,016,428.52 | 10,106,268.87 |
39. Deferred income
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance | Cause of formation |
Government grant | 223,123,978.78 | 26,727,836.90 | 61,078,193.39 | 188,773,622.29 | |
Total | 223,123,978.78 | 26,727,836.90 | 61,078,193.39 | 188,773,622.29 | -- |
Other explanation:
Item with government grants involved:
In RMB
Items of liabilities | Opening balance | New grants in the Period | Amount reckoned into other income in the period | Translation of foreign currency statements | Ending balance | Assets related/Income related |
Appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use and production line technological transformation project | 5,536,697.24 | -- | 781,651.40 | -- | 4,755,045.84 | Assets related |
Fund of industry upgrade (2013) | 18,710,191.69 | -- | 11,457,713.56 | -- | 7,252,478.13 | Income related |
R&D and industrialization of the high-pressure variable pump of the common rail system of diesel engine for automobile | 2,699,860.97 | -- | 1,012,586.51 | -- | 1,687,274.46 | Assets related |
Research institute of motor vehicle exhaust after-treatment technology | 117,789.93 | -- | 95,763.54 | -- | 22,026.39 | Assets related |
Fund of industry upgrade (2014) | 36,831,000.00 | -- | -- | 36,831,000.00 | Income related | |
New-built assets compensation after the removal of parent company | 63,443,087.73 | -- | 18,616,741.70 | -- | 44,826,346.03 | Assets related |
Fund of industry upgrade (2016) | 40,000,000.00 | -- | -- | 40,000,000.00 | Income related |
Guiding capital for the technical reform from State Hi-Tech Technical Commission | 3,787,113.97 | -- | 1,214,425.00 | -- | 2,572,688.97 | Assets related |
Implementation of the variable cross-section turbocharger for diesel engine | 4,254,433.18 | -- | 1,548,680.15 | -- | 2,705,753.03 | Assets related |
Demonstration project for intelligent manufacturing | 431,887.80 | -- | 180,038.20 | -- | 251,849.60 | Assets related |
The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019 | 1,849,844.13 | -- | 1,200,987.63 | -- | 648,856.50 | Assets related |
Municipal technological reform fund allocation in 2020 | 3,527,096.61 | -- | 615,897.08 | -- | 2,911,199.53 | Assets related |
Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone | 3,374,618.86 | -- | 833,156.76 | -- | 2,541,462.10 | Assets related |
The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021 | 13,500,000.00 | -- | 9,554,476.19 | -- | 3,945,523.81 | Assets related |
2023 Wuxi Industrial Transformation and Upgrading Fund | -- | 10,000,000.00 | 998,752.96 | -- | 9,001,247.04 | Assets related |
Technical renovation and capacity optimization project for annual production of 150,000 sets of turbochargers | -- | 2,000,000.00 | 323,880.62 | -- | 1,676,119.38 | Assets related |
Other | 25,060,356.67 | 14,584,244.26 | 12,643,442.09 | 143,592.64 | 27,144,751.48 | Assets related/Income related |
Total | 223,123,978.78 | 26,584,244.26 | 61,078,193.39 | 143,592.64 | 188,773,622.29 |
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 781,651.40 yuan was written off based on thedepreciation schedule of the related assets during the 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 11,457,713.56 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 Ke Ji[2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao[2014] No.58, Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. The company received 8.05 million yuan, 3 million
yuan and 0.45 million yuan respectively in 2013, 2014 and 2015; such funds were asset-related government grant, and shall bewritten off according to the depreciation process, amount of 1,012,586.51 yuan was written off in the year.
(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 the vehicleexhaust 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 million yuanin 2012, and received appropriation of 1.6 million yuan in 2013. Such funds were asset-related government grants and shall bewritten off according to the depreciation process, and amount of 95,763.54 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.
(6) New-built assets 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 assets, amount of 18,616,741.70 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 a 9.74 million yuan for the guiding capital of technicalreform (1st batch) from Wuxi for year of 2016, and belongs to government grant with assets concerned, and shall be written offaccording to the depreciation process, amount of 1,214,425.00 yuan was written off in the year.
(9) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]No.623 and “Strong Industrial Base Project Contract for year of 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 assets concerned, and shall be written off according to the depreciation process. Amount of 1,548,680.15yuan 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 of WFLD’sintelligent manufacturing facilities. This subsidy belongs to government grant related to assets which shall be written off based on thedepreciation progress of the assets. Amount of 180,038.20 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 to XCGM[2019] No. 121, the Company received a special fund of 5 million yuan in 2020. This subsidy was related to the “Weifu High-Technology New Factory Internet Construction” projects, and belonged to government grants related to assets. and shall be writtenoff according to the depreciation process, amount of 1,200,987.63 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 assets. and shall be written off according to the depreciationprocess. Amount of 615,897.08 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 in 2021, this grant wasrelated to the intelligent transformation project and belonged to the government grants related to assets. and shall be written offaccording to the depreciation process, amount of 833,156.76 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 andindustrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells, which was an
assets related government grants. According to the depreciation progress of related assets, amount of 9,554,476.19 yuan was writtenoff in the year.
(15) 2023 Wuxi Industrial Transformation and Upgrading Fund: The government grant 10 million yuan received in 2023 was usedfor the company's new motor shaft, water jacket, injector seat, and gasoline rail expansion project, which is a government subsidyrelated to assets. According to the depreciation progress of related assets, amount of 998,752.96 yuan was written off in the year.
(16) Technical renovation and capacity optimization project for annual production of 150,000 sets of turbochargers: According toBQJX[2021] No.31 and BQJX[2022]No. 29 documents, the subsidiary WFTL received a government subsidy of 2 million yuan in2023 for the annual production of 150,000 sets of turbochargers technology renovation and capacity optimization project. Thissubsidy belongs to asset related government grant. According to the depreciation progress of related assets, amount of 323,880.62yuan was written off in the year.
40. 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 | 1,008,603,293.00 | -6,440,500.00 | -6,440,500.00 | 1,002,162,793.00 |
Other explanation:
Decreased in share capital was due to the buy-back and cancellation of 6,440,500 restricted shares initially granted under theRestricted Shares Incentive Plan.
41. Capital reserve
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
Capital premium (Share capital premium) | 3,318,949,527.98 | 73,251,190.00 | 3,245,698,337.98 | |
Other capital reserve | 79,419,039.65 | 13,074,587.99 | 30,021,824.66 | 62,471,802.98 |
Total | 3,398,368,567.63 | 13,074,587.99 | 103,273,014.66 | 3,308,170,140.96 |
Other explanation, including changes in the period and reasons for changes;
(1) Share capital premium has increased RMB73,251,190.00 in the period, because the 6,440,500 shares under restricted stockincentive plan which were unable to be unlocked were canceled by the Company.
(2) The increase of 13,074,587.99 yuan in other capital reserves in the current period is due to changes in other equity of jointventures, which the company enjoys in proportion to its shareholding; The decrease of 30,021,824.66 yuan in other capitalreserves in the current period is composed of two parts: ① a net amount of 30,009,672.78 yuan after deducting 929,399.14 yuanattributable to minority shareholders from the equity settled share payment expenses of 30,939,071.92 yuan; ② The handling feefor buy backing shares is 12,151.88 yuan.
42. Treasury stock
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
Stock repurchases | 397,804,542.63 | 71,917,549.61 | 469,722,092.24 | |
Repurchase obligation of restricted stock incentive plan | 143,818,460.00 | 80,251,040.00 | 63,567,420.00 | |
Total | 541,623,002.63 | 71,917,549.61 | 80,251,040.00 | 533,289,512.24 |
Other explanation, including changes in the current period and explanations of the reasons for the changes:
Share buy-back: the increase of 71,917,549.61 yuan due to share buy-back by way of centralized bidding in 2023;Repurchase obligation of restricted stock incentive plan: has RMB 80,251,040.00 decreased in the Period, mainly including twoparts: ① RMB559,350.00 cash dividends received by restricted stock incentive recipients during the period; and ② RMB79,691,690.00 is the buying back and cancellation of 6,440,500 restricted shares, the first batch of unlocked in the Company’srestricted stock incentive plan by the Company as treasury stock.
43. 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 gains and losses 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 | -383,156.26 | -1,189,898.59 | -1,189,898.59 | -1,573,054.85 | ||||
Including:Remeasure changes in defined benefit plans | -399,165.06 | -1,189,898.59 | -1,189,898.59 | -1,589,063.65 | ||||
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 | -528,153.87 | 56,258,124.69 | 56,258,124.69 | 55,729,970.82 | ||||
Conversion difference of foreign currency financial statement | -528,153.87 | 56,258,124.69 | 56,258,124.69 | 55,729,970.82 | ||||
Total other comprehensive | -911,310.13 | 55,068,226.10 | 55,068,226.10 | 54,156,915.97 |
income
44. Reasonable reserve
In RMB
Item | Opening balance | Current increased | Current decreased | Ending balance |
Safety production costs | 2,119,800.95 | 30,768,590.85 | 29,246,951.83 | 3,641,439.97 |
Total | 2,119,800.95 | 30,768,590.85 | 29,246,951.83 | 3,641,439.97 |
Other explanation, including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (safe production 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 quarterly withdrawal bytaking the actual operating income of the previous period as the withdrawing basis.
(2) Among the above safety production costs, including the safety production costs Accrued by the Company in line with regulationsand the parts enjoy by shareholders of the Company in safety production costs Accrued by subsidiary in line with regulations.
45. 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:
Withdrawal of the statutory surplus reserves: Pursuit to the Company Law and Article of Association, the Company withdrawsstatutory surplus reserve on 10% of the net profit. No more amounts shall be withdrawal if the accumulated statutory surplus reservetakes over 50% of the registered capital.
46. Retained profit
In RMB
Item | Current period | Last period |
Retained profits at the end of last year before adjustment | 13,320,021,325.90 | 14,814,787,377.86 |
Retained profits at the beginning of the year after adjustment | 13,320,021,325.90 | 14,814,787,377.86 |
Add: The net profits belong to owners of patent company of this period | 1,837,291,259.68 | 118,819,836.30 |
Less: Withdraw employee rewards and welfare funds | 4,604,208.16 | 4,526,219.46 |
Less: Cash dividends payable | 97,757,979.30 | 1,609,059,668.80 |
Retained profit at period-end | 15,054,950,398.12 | 13,320,021,325.90 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect theretained profits at the beginning of the period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan
47. Operating income and cost
In RMB
Item | Current period | Last Period | ||
Income | Cost | Income | Cost | |
Main operating | 10,926,750,670.90 | 9,083,184,521.77 | 12,333,099,421.87 | 10,658,281,929.91 |
Other business | 166,391,280.08 | 67,128,118.97 | 396,535,495.16 | 358,103,558.89 |
Total | 11,093,141,950.98 | 9,150,312,640.74 | 12,729,634,917.03 | 11,016,385,488.80 |
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes ?No
Breakdown information of operating income and operating cost:
In RMB
Type of contract | Automotive fuel injection systems and fuel cell components product segment | Automotive aftertreatment system product segment | Automotive intake system product 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: | ||||||||||
Main business | ||||||||||
Including: Confirm at a certain point in time | 5,080,741,962.36 | 3,913,984,197.78 | 3,409,054,236.79 | 2,981,940,280.48 | 660,060,994.40 | 509,537,527.46 | 1,776,893,477.35 | 1,677,722,516.05 | 10,926,750,670.90 | 9,083,184,521.77 |
Confirm at a certain time period | ||||||||||
Other business | ||||||||||
Including: Confirm at a certain point in time | 98,121,765.05 | 41,281,642.58 | 28,752,318.79 | 7,542,581.44 | 6,177,719.02 | 857,866.05 | 7,682,787.10 | 9,845,827.41 | 140,734,589.96 | 59,527,917.48 |
Confirm at a certain time period | ||||||||||
Rental Income | 22,700,928.04 | 5,093,327.35 | 2,006,634.03 | 2,032,502.22 | 949,128.05 | 474,371.92 | 25,656,690.12 | 7,600,201.49 | ||
Total | 5,201,564,655.45 | 3,960,359,167.71 | 3,439,813,189.61 | 2,991,515,364.14 | 667,187,841.47 | 510,869,765.43 | 1,784,576,264.45 | 1,687,568,343.46 | 11,093,141,950.98 | 9,150,312,640.74 |
Other explanation: Nil
48. Operating tax and extra
In RMB
Item | Current period | Last Period |
City maintaining & construction tax | 16,905,414.53 | 22,771,182.73 |
Educational surtax | 12,088,114.70 | 16,273,199.41 |
Property tax | 21,212,224.67 | 18,009,579.96 |
Land use tax | 3,992,127.78 | 4,517,681.71 |
Vehicle use tax | 29,435.60 | 19,195.41 |
Stamp duty | 8,287,007.60 | 8,187,585.86 |
Other taxes | 1,950,181.70 | 797,159.81 |
Total | 64,464,506.58 | 70,575,584.89 |
49. Administration expenses
In RMB
Item | Current period | Last Period |
Salary and wage related expense | 314,566,474.57 | 312,885,696.17 |
Depreciation charger and long-term assets amortization | 109,483,887.51 | 80,103,136.06 |
Consumption of office materials and business travel charge | 27,671,402.47 | 20,460,578.25 |
Share-based payment | -19,732,503.59 | 18,889,058.87 |
Other | 180,107,465.13 | 154,048,004.97 |
Total | 612,096,726.09 | 586,386,474.32 |
50. Sales expenses
In RMB
Item | Current period | Last Period |
Salary and wage related expense | 73,662,318.04 | 59,134,720.55 |
Consumption of office materials and business travel charge | 12,536,232.60 | 7,978,020.25 |
Warehouse charge | 21,000,061.65 | 12,489,955.81 |
Three guarantees and quality cost | 88,247,974.30 | 73,394,539.28 |
Business entertainment fee | 14,118,610.14 | 16,300,099.96 |
Other | 21,005,989.87 | 20,230,754.86 |
Total | 230,571,186.60 | 189,528,090.71 |
51. R&D expenditure
In RMB
Item | Current period | Last period |
Technology development expenditure | 667,871,159.95 | 581,488,711.88 |
Total | 667,871,159.95 | 581,488,711.88 |
52. Financial expenses
In RMB
Item | Current period | Last Period |
Interest expenses | 95,145,829.10 | 107,737,432.78 |
Less: interest income | 40,360,794.63 | 41,020,724.48 |
Gains/losses from exchange | -10,232,320.08 | 10,099,986.41 |
Handling charges | 3,488,218.26 | 5,510,921.05 |
Total | 48,040,932.65 | 82,327,615.76 |
53. Other income
In RMB
Sources of income generated | Current period | Last period |
Government grants with routine operation activity concerned | 75,786,785.30 | 108,331,768.29 |
VAT instant refund | 13,900,358.81 | |
Tax credit for overseas subsidiaries | 6,945,676.32 | 3,338,966.48 |
Refund of individual income tax handling fee | 832,150.33 | 994,662.50 |
Total | 97,464,970.76 | 112,665,397.27 |
Details of government subsidies included in other income:
Subsidy projects | Current period | Last period | Related to assets/income |
Industrialization project of electric controlled high-pressure injection VE pump system for low emission diesel engines | -- | 721,000.26 | Related to assets/income |
Jiangsu Province Key Laboratory of Motor Vehicle Exhaust Pollution Control (Engineering Center) | 140,833.00 | 170,000.00 | Related to assets/income |
Funding for Wuxi Key Laboratory | 35,000.00 | 70,000.00 | Related to assets/income |
Support Fund for Technical Renovation of Commercial Vehicle Catalytic Reduction System Packaging Line with an Annual Production of 140,000 Units (2014) | 259,000.00 | 259,000.00 | Related to assets |
Annual production of 300,000 four cylinder engine supercharger technology renovation project | 56,878.65 | 96,266.37 | Related to assets |
Annual production of 150,000 gasoline engine turbochargers project | -- | 24,239.76 | Related to assets |
Depreciation/amortization compensation for newly built assets after the relocation of the parent company | 18,616,741.70 | 19,691,341.21 | Related to assets |
Technical transformation of catalytic reduction system for commercial vehicles with an annual output of 180,000 units | 233,555.56 | 233,555.56 | Related to assets |
Research and industrialization project of high-pressure variable pump for common rail system of automotive diesel engine | 1,012,586.51 | 1,117,613.70 | Related to assets |
Intelligent manufacturing demonstration project funds | 180,038.20 | 220,493.70 | Related to assets |
Research Institute of Motor Vehicle Exhaust Aftertreatment Technology | 95,763.54 | 530,870.24 | Related to assets |
Implementation plan for variable cross-section turbochargers in diesel engines | 1,548,680.15 | 1,628,355.53 | Related to assets |
Subsidy for the annual production of 200,000 gasoline engine turbochargers technology renovation project | 276,403.68 | 130,825.45 | Related to assets |
Annual production of 150,000 gasoline engine | 246,974.99 | 282,056.24 | Related to assets |
Subsidy projects | Current period | Last period | Related to assets/income |
turbochargers | |||
Technical Transformation Guidance Fund of the National High tech Management Committee | 1,214,425.00 | 1,270,553.36 | Related to assets |
Industrial upgrading fund | 11,977,713.56 | 47,459,608.31 | Related to assets |
Funding for Wuxi Science and Technology Research and Development Institutions in 2015 | -- | 140,000.00 | Related to assets/income |
R&D capability and production line technology transformation project of distributed high-pressure common rail system for diesel engines | 781,651.40 | 781,651.38 | Related to assets |
Anione | 168,069.46 | 264,812.57 | Related to income |
Neptune | 147,478.34 | 357,572.17 | Related to income |
Funding for municipal level technological renovation projects in 2020 | 615,897.08 | 616,309.46 | Related to assets |
The second batch of provincial special funds for industrial and information industry transformation in 2019 | 1,200,987.63 | 1,596,505.99 | Related to assets |
Borit R&D subsidy | -- | 35,419.76 | Related to income |
ECOethylene | 529,630.58 | 1,250,899.19 | Related to income |
Borit withholding’s returning | -- | 1,400,901.38 | Related to income |
Subsidies for stabilizing and expanding positions | 2,715,586.61 | 3,820,755.20 | Related to income |
WFJN financial Support Fund | 2,750,000.00 | 1,230,000.00 | Related to income |
Key technology research and development project for intelligent management of diesel engine electronic control fuel system | 155,154.12 | 680,983.13 | Related to income |
Selection of Top 50 Enterprises in Jiangbei District, Ningbo | -- | 1,030,000.00 | Related to income |
Development funds for small and medium-sized enterprises | -- | 2,000,000.00 | Related to income |
Special funds for high-quality development | -- | 1,000,000.00 | Related to income |
Strategic Cooperation Agreement Funds for Key Intelligent Manufacturing Enterprises in High tech Zone | 833,156.76 | 1,076,250.73 | Related to income |
2021 Industrial Development Funds for Investment Attracting Enterprises in Tongliang District | -- | 6,913,300.00 | Related to income |
Training subsidies | 143,800.00 | 432,575.00 | Related to income |
Talent policy subsidies | 663,250.00 | 1,135,000.00 | Related to income |
Special funds for intelligent transformation and digital transformation | 2,300,000.00 | Related to income | |
2022 Headquarters Enterprise Rewards | 1,000,000.00 | Related to income | |
2020 Wuxi Science and Technology Development Fund | 4,500,000.00 | Related to income | |
Technical renovation awards and guidance funds | 1,030,000.00 | Related to income | |
Wuxi Industrial Transformation and Upgrading Fund | 11,678,229.15 | Related to assets/income | |
Technical Renovation and Capacity Optimization Project for Annual Production of 150,000 Turbochargers | 323,880.62 | Related to assets | |
Other | 8,355,419.01 | 8,663,052.64 | Related to assets/income |
Total | 75,786,785.30 | 108,331,768.29 |
54. Income from change of fair value
In RMB
Sources | Current period | Last period |
Changes in the fair value of wealth management products | 3,864,051.26 | -12,803,609.57 |
Changes in the fair value of the stocks of listed companies held-excluding the stocks of listed companies that are included in other equity instrument investments | 5,903,595.38 | -144,072,026.77 |
Changes in fair value of foreign exchange contracts | -747,115.75 | |
Total | 9,767,646.64 | -157,622,752.09 |
55. Investment income
In RMB
Item | Current period | Last period |
Income of long-term equity investment calculated based on equity method | 1,596,392,131.72 | 1,636,986,684.96 |
Investment income from holding of trading financial assets | 94,704,109.98 | 216,491,612.58 |
Investment income from disposal of trading financial assets | 13,328,675.84 | 137,682.59 |
Dividend income obtained from other equity instrument investments during the holding period | 683,455.00 | |
Income from debt restructuring | -323,525.00 | |
Gains/losses recognized when financing of accounts receivable is terminated for discounting | -2,111,334.30 | -5,153,934.63 |
Total | 1,701,990,058.24 | 1,849,145,500.50 |
56. Credit impairment loss
In RMB
Item | Current period | Last period |
Bad debt loss of accounts receivable | -2,323,920.65 | -227,652.91 |
Bad debt loss of other accounts receivable | -2,078,528.42 | -1,645,653,489.49 |
Total | -4,402,449.07 | -1,645,881,142.40 |
57. Asset impairment loss
In RMB
Item | Current period | Last period |
1. Loss of inventory falling price and loss of contract performance cost impairment | -205,166,872.96 | -181,610,433.12 |
2. Impairment loss of fixed assets | -502,006.79 | |
3. Impairment loss of construction in progress | -184,615.38 | |
4. Impairment loss of goodwill | -125,422,037.41 | |
Total | -331,275,532.54 | -181,610,433.12 |
58. Income from assets disposal
In RMB
Sources | Current period | Last period |
Income from disposal of non-current assets | 129,441,950.49 | 3,687,970.49 |
Losses from disposal of non-current assets | -1,127,465.96 | -1,701,165.96 |
Total | 128,314,484.53 | 1,986,804.53 |
Other explanation: In 2023, the Housing Acquisition Management Office of Qixia District, Nanjing City signed the Nanjing Stateowned Land Housing Acquisition and Compensation Agreement with its subsidiary, WFJN. According to the agreement, the land,houses, and building attachments of Weifu Jinning located at No. 69 Taiping Village, Yanziji Town, Qixia District will beexpropriated by the government. The compensation method for expropriation is monetary compensation, with a compensationamount of 119,435,904.00 yuan, which is mainly determined based on the evaluation results issued by the evaluation company. Asof December 31, 2023, the Company has delivered the expropriated houses and land in accordance with the agreement, and hasalso delivered the relevant original house ownership certificates and state-owned land use certificates to the Housing ExpropriationManagement Office of Qixia District, Nanjing City. In 2023, WFJN has received full compensation.
59. Non-operating income
In RMB
Item | Current period | Last period | Amount reckoned into current non-recurring gains/losses |
Payables that do not require payment | 16,309,506.68 | 2,048,698.72 | 16,309,506.68 |
Price difference for business combinations not under the same control | 3,181,563.57 | ||
Liquidated damages and compensation income | 28,044.25 | 281,760.53 | 28,044.25 |
Other | 774,256.31 | 187,745.22 | 774,256.31 |
Total | 17,111,807.24 | 5,699,768.04 | 17,111,807.24 |
60. Non-operating expense
In RMB
Item | Current period | Last period | Amount reckoned into current non-recurring gains/losses |
Donation | 520,000.00 | 5,013,500.00 | 520,000.00 |
Non-current assets disposal losses | 1,776,304.86 | 2,135,371.43 | 1,776,304.86 |
Including: loss on scrapping of fixed assets | 1,776,304.86 | 2,135,371.43 | 1,776,304.86 |
Loss on scrapping of intangible assets | |||
Other | 2,114,886.99 | 562,788.63 | 1,094,335.42 |
Total | 4,411,191.85 | 7,711,660.06 | 4,411,191.85 |
61. Income tax expense
(1) Income tax expense
In RMB
Item | Current period | Last period |
Payable tax in current period | 61,654,852.13 | 11,061,046.36 |
Adjust previous income tax | -96,623.66 | 2,032,113.63 |
Increase/decrease of deferred income tax assets | -29,999,459.03 | -56,032,739.30 |
Increase/decrease of deferred income tax liability | -10,363,707.21 | 31,608,004.40 |
Total | 21,195,062.23 | -11,331,574.91 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item | Current period |
Total profit | 1,934,344,592.32 |
Income tax measured by statutory/applicable tax rate | 290,151,688.85 |
Impact by different tax rate applied by subsidies | -11,444,237.30 |
Impact from adjusting the previous income tax | -96,623.66 |
Impact by non-taxable revenue | -241,119,377.31 |
Impact on cost, expenses and losses that unable to deducted | 43,791,316.04 |
Impact by the deductible losses of the un-recognized previous deferred income tax | -20,847,787.63 |
The deductible temporary differences or deductible losses of the un-recognized deferred income tax assets in the Period | 27,720,065.21 |
Impact on additional deduction | -64,268,987.24 |
Other | -2,690,994.73 |
Income tax expense | 21,195,062.23 |
62. Other comprehensive income
See Note VII-43“Other comprehensive income”.
63. Items of cash flow statement
(1) Cash received in relation to operation activities
Other cash received in relation to operation activities
In RMB
Item | Current period | Last period |
Interest income | 40,360,794.63 | 41,020,724.48 |
Government grants | 38,542,836.17 | 32,507,707.23 |
Margin on operation bill | 5,804,353.60 | 170,000.00 |
Capital inflow of WFTR “platform trade” business portfolio | 199,235,761.25 | 3,604,252,294.46 |
Other | 20,368,806.84 | 4,898,138.17 |
Total | 304,312,552.49 | 3,682,848,864.34 |
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 | 653,211,963.42 | 571,583,226.93 |
Capital outflow of WFTR “platform trade” business portfolio | 6,345,751,426.41 | |
Other | 19,807,691.63 | 37,760,946.39 |
Total | 673,019,655.05 | 6,955,095,599.73 |
Explanation to other cash paid in relation to operation activities: Nil
(2) Cash in relation to investment activities
Other cash received in related to investment activities
In RMB
Item | Current period | Last period |
Recovery of forward foreign exchange settlement and sales deposit | 18,840,000.00 | |
Total | 18,840,000.00 |
Significant cash received in related to investment activities: NilExplanation on other cash received in related to investment activities: NilCash paid in related to investment activities
In RMB
Item | Current period | Last period |
Deposit paid for the purchase of VHWX | 136,739,145.73 | |
Payment of foreign exchange contract deposit and loss of foreign exchange contract | 13,036,225.94 | 9,492,968.77 |
Total | 13,036,225.94 | 146,232,114.50 |
Significant cash paid in related to investment activities: NilExplanation on other cash paid in related 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 | 163,470,112.06 | |
Borrowing return by WFLD | 5,470,000.00 | |
Lease payments | 18,319,242.80 | 19,302,140.88 |
Repurchase of A shares | 71,917,549.61 | 397,804,542.63 |
Shares repurchase for restricted stock incentive plan unlocked | 74,368,290.00 | 5,323,400.00 |
Other | 27,791.59 | |
Total | 164,632,874.00 | 591,370,195.57 |
Explanation on other cash paid in relation to financing activities: NilChanges in liabilities 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 | 3,604,376,527.82 | 2,271,375,308.64 | 77,537,480.05 | 5,114,399,759.00 | 838,889,557.51 | |
Long-term borrowing | 238,000,000.00 | 425,000,000.00 | 338,500,000.00 | 24,700,000.00 | 299,800,000.00 | |
Non-current liabilities maturing within one year | 14,285,348.90 | 49,784,362.77 | 25,985,390.57 | 38,084,321.10 | ||
Lease liabilities | 31,589,277.20 | 23,663,633.85 | 4,397,712.88 | 13,122,001.66 | 37,733,196.51 | |
Total | 3,888,251,153.92 | 2,696,375,308.64 | 150,985,476.67 | 5,483,282,862.45 | 37,822,001.66 | 1,214,507,075.12 |
Other Explanation: Current increase in short-term loans - non cash changes including exchange gains and losses - RMB1,811,249.94;The current decrease in long-term borrowings and lease liabilities - non cash changes due to reclassification ofamounts due within one year to non current liabilities due within one year.
(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 future
Nil
64. 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 | 1,913,149,530.09 | 190,946,008.25 |
Add: Assets impairment provision | 335,677,981.61 | 1,827,491,575.52 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 529,985,637.44 | 423,381,573.22 |
Depreciation of right-of-use assets | 14,870,657.15 | 10,487,347.35 |
Amortization of intangible assets | 72,828,479.04 | 47,414,586.57 |
Amortization of long-term deferred expenses | 7,361,781.35 | 5,676,279.94 |
Losses from disposal of fixed assets, intangible assets and other long-term assets (gains shall be filled in with the sign of “-”) | -128,314,484.53 | -1,986,804.53 |
Losses on scrapping of fixed assets(gains shall be filled in with the sign of “-”) | 1,791,596.04 | 2,135,371.43 |
Gains/losses of fair value changes(gains shall be filled in with the sign of “-”) | -9,767,646.64 | 157,622,752.09 |
Financial expenses(gains shall be filled in with the sign of “-”) | 83,562,038.16 | 106,707,239.68 |
Investment loss (gains shall be filled in with the sign of “-”) | -1,715,570,129.25 | -1,874,322,320.27 |
Decrease of deferred income tax asset(increase shall be filled in with the sign of “-”) | -29,999,459.03 | -56,032,739.30 |
Increase of deferred income tax liability(decrease shall be filled in with the sign of “-”) | -10,363,707.21 | 31,608,004.40 |
Decrease of inventory(increase shall be filled in with the sign of “-”) | 14,264,964.67 | 1,073,359,311.32 |
Decrease of operating receivable accounts (increase shall be filled in with the sign of “-”) | -231,126,963.47 | -3,936,816,340.90 |
Increase of operating payable accounts(decrease shall be filled in with the sign of “-”) | 804,259,836.29 | -608,366,974.35 |
Other | -26,360,199.81 | 24,952,480.15 |
Net cash flows arising from operating activities | 1,626,249,911.90 | -2,575,742,649.43 |
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 assets | ||
3. Net change of cash and cash equivalents: | ||
Balance of cash at period end | 2,061,986,694.41 | 2,277,117,604.82 |
Less: Balance of cash equivalent at year-begin | 2,277,117,604.82 | 1,094,018,936.73 |
Add: Balance at year-end of cash equivalents | ||
Less: Balance at year-begin of cash equivalents | ||
Net increase of cash and cash equivalents | -215,130,910.41 | 1,183,098,668.09 |
(2) Net cash payment for the acquisition of subsidiaries in the period
In RMB
Amount | |
Add: Cash or cash equivalents paid in the current period for the business acquisition that occurred in previous periods | 13,716,100.33 |
Including: | |
Net cash payment for the acquisition of subsidiaries | 13,716,100.33 |
Other explanation: Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
In RMB
Item | Ending balance | Opening balance |
I. Cash | 2,061,986,694.41 | 2,277,117,604.82 |
Including: Cash on hand | 6,343.24 | 51,818.51 |
Bank deposit available for payment at any time | 2,061,980,351.17 | 2,277,065,786.31 |
II. Balance of cash and cash equivalents at the period-end | 2,061,986,694.41 | 2,277,117,604.82 |
(5) Items whose application scope is restricted but are still listed as cash and cash equivalents
(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 of more than 3 months | 180,000,000.00 | 60,000,000.00 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- Foreign exchange contract USD margin | 18,840,000.00 | Does not meet the definition of cash and cash equivalents | |
Other monetary funds- Deposit paid for issuing bank acceptance bills | 22,174,151.94 | 24,368,385.65 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- IRD performance bond | 7,902,000.00 | 7,487,250.00 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- Mastercard earnest money | 210,720.00 | 199,660.00 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- ETC freeze | 4,000.00 | 5,000.00 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- Judicial freeze | 180,000.00 | Does not meet the definition of cash and cash equivalents | |
Other monetary funds- Foreign exchange funds in transit | 1,184,752.79 | 91,750.29 | Does not meet the definition of cash and cash equivalents |
Other monetary funds- Dividends in transit | 1,309,380.00 | 1,262,280.00 | Does not meet the definition of cash and cash equivalents |
Total | 212,785,004.73 | 112,434,325.94 |
Other explanation: Nil
(7) Notes to other significant activities
65. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year:
In this period, the Company did not make any adjustments to the year-end balance of the previous year, including the names andamounts of other items.
66. 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 | 9,668,849.38 | 7.0827 | 68,481,559.49 |
EUR | 31,497,419.60 | 7.8592 | 247,544,520.12 |
HKD | 914,138.23 | 0.90622 | 828,410.35 |
JPY | 7,975,655.00 | 0.050213 | 400,481.57 |
DKK | 15,008,361.83 | 1.0536 | 15,812,810.02 |
Account receivable | |||
Including: USD | 3,671,490.42 | 7.0827 | 26,004,065.20 |
EUR | 26,826,563.09 | 7.8592 | 210,835,324.64 |
HKD | |||
JPY | 15,066,940.00 | 0.050213 | 756,556.26 |
DKK | 9,465,657.99 | 1.0536 | 9,973,017.26 |
Long-term borrowings | |||
Including: USD | |||
EUR | |||
HKD | |||
Other account receivables | |||
Including: EUR | 277,184.18 | 7.8592 | 2,178,445.91 |
DKK | 2,180,889.68 | 1.0536 | 2,297,785.37 |
Account payable | |||
Including: USD | 1,259,805.06 | 7.0827 | 8,922,821.30 |
EUR | 29,745,541.80 | 7.8592 | 233,776,162.12 |
JPY | 19,496,400.00 | 0.050213 | 978,972.73 |
DKK | 23,043,173.79 | 1.0536 | 24,278,287.91 |
GBP | 2,450.00 | 9.0411 | 22,150.70 |
CHF | 317,934.39 | 8.4184 | 2,676,498.87 |
Other account payable | |||
Including: EUR | 13,639.91 | 7.8592 | 107,198.78 |
DKK | 1,230,912.02 | 1.0536 | 1,296,888.90 |
Non-current liabilities due within one year | |||
Including: USD | 156,484.17 | 7.0827 | 1,108,330.43 |
EUR | 601,051.35 | 7.8592 | 4,723,782.77 |
DKK | 1,257,635.41 | 1.0536 | 1,325,044.67 |
Leasing liabilities | |||
Including: USD | 230,805.29 | 7.0827 | 1,634,724.63 |
EUR | 1,140,990.24 | 7.8592 | 8,967,270.49 |
DKK | 19,974,012.44 | 1.0536 | 21,044,619.51 |
(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 holds100% 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. Boritis 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.
67. Lease
(1) The company as the lessee
Variable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value assets?Applicable □Not applicableLeasing cost of simplified handling of short-term leasing or leasing costs for low value assets is 8,493,394.15 yuan; The total cashoutflow related to leasing is 26,928,749.23 yuan.The relevant information on the right-of-use assets can be found in NoteVII-16 “Right of use assets”.Situations involving lease sales-back
(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 | 25,656,690.12 | |
Total | 25,656,690.12 |
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
(3) Recognize gains/losses arising from financing lease sale with the company as producer or dealer
□Applicable ?Not applicable
68. Others
NilVIII. R&D expenditure
In RMB
Item | Current period | Last period |
Employee compensation | 285,889,549.54 | 252,383,929.03 |
Direct investment | 195,791,776.44 | 189,668,890.73 |
Depreciation and amortization | 117,384,698.44 | 95,794,189.07 |
Other | 68,805,135.53 | 43,641,703.05 |
Total | 667,871,159.95 | 581,488,711.88 |
Including: expensed R&D expenditure | 667,871,159.95 | 581,488,711.88 |
1. R&D items that meet capitalization conditions: Nil
2. Important outsourced projects under research: Nil
IX. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Book value of assets and liabilities of the merged party on the merger dateNil
(4) Gains or losses 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 Period or not
□Yes ?No
(5) Notes relating to the merge date or the end of the period in which the merger consideration or the fairvalue of the merged party’s identifiable assets and liabilities 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 periodNil
(2) Consolidation cost
Nil
(3) Book value of assets and liabilities 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 theperiod
□Yes ?No
5. Changes in the scope of consolidation due to other reasons
Nil
6. Others
NilX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
In ten thousand yuan
Subsidiary | Registered capital | Main operation place | Egistered 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 | |
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 | |
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: NilBasis for inclusion in the scope of consolidation of significant structured entities, control: 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 | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
WFJN | 20.00% | 32,888,445.77 | 11,641,107.58 | 231,399,302.98 |
WFLD | 5.19% | 3,426,727.50 | 156,465,455.26 | |
Total | 36,315,173.27 | 40,453,107.58 | 387,864,758.24 |
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsidiary | Ending balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
WFJN | 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 | 858,419,058.16 | 577,359,266.26 | 1,435,778,324.42 | 346,383,138.63 | 35,181,853.60 | 381,564,992.23 |
WFLD | 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 | 4,869,373,661.60 | 1,412,237,671.12 | 6,281,611,332.72 | 3,512,116,686.68 | 218,075,518.79 | 3,730,192,205.47 |
Total | 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 | 5,727,792,719.76 | 1,989,596,937.38 | 7,717,389,657.14 | 3,858,499,825.31 | 253,257,372.39 | 4,111,757,197.70 |
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 | 661,256,020.17 | 164,076,571.71 | 164,076,571.71 | 7,886,426.15 | 732,361,563.72 | 83,150,768.43 | 83,150,768.43 | 62,087,338.85 |
WFLD | 3,605,313,446.67 | 232,172,143.48 | 232,172,143.48 | 814,222,683.45 | 5,937,549,034.42 | 265,352,997.31 | 265,352,997.31 | 87,740,237.63 |
Total | 4,266,569,466.84 | 396,248,715.19 | 396,248,715.19 | 822,109,109.60 | 6,669,910,598.14 | 348,503,765.74 | 348,503,765.74 | 149,827,576.48 |
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise groupNil
(5) Financial or other supporting offers to the structured entity included in consolidated financialstatement range
Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
(1) Owners’ equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Other explanation: Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
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 |
WFEC | Wuxi | Wuxi | Catalyst | 49.00% | Equity method | |
RBCD | Wuxi | Wuxi | Internal-combustion engine accessories | 32.50% | 1.50% | Equity method |
Zhonglian Electronics. | Shanghai | Shanghai | Internal-combustion engine accessories | 20.00% | Equity method | |
WFPM | Wuxi | Wuxi | Internal-combustion engine accessories | 20.00% | Equity method | |
Changchun Xuyang | Changchun | Changchun | Automobile components | 34.00% | Equity method | |
PrecorsGmbH | Germany | Germany | Fuel cell components | 43.39% | Equity method | |
Auto Link | Wuxi | Wuxi | Telematics services | 9.6372% | Equity method | |
Lezhuo Bowei | Shanghai | Shanghai | Automobile components | 50.00% | 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 Auto Link, and appointed a director to Auto Link. Though the representative, the Companycan participate in the operation policies formulation of Auto Link, and thus exercise a significant influence over Auto Link.
(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 assets | 3,309,330,261.33 | 13,057,353,298.24 | 156,804,165.22 | 3,507,976,754.16 | 15,426,523,373.99 | 241,595,079.15 |
Including: cash and cash equivalent | 695,880,608.87 | 16,224,264.19 | 131,177,239.01 | 813,874,175.27 | 10,773,921.81 | 225,052,854.96 |
Non -current assets | 417,489,997.17 | 3,452,708,227.20 | 8,276,183,030.91 | 333,764,427.43 | 3,421,035,986.82 | 7,557,124,612.32 |
Total assets | 3,726,820,258.50 | 16,510,061,525.44 | 8,432,987,196.13 | 3,841,741,181.59 | 18,847,559,360.81 | 7,798,719,691.47 |
Current liabilities | 1,402,974,842.29 | 8,401,045,934.29 | 7,530,191.60 | 1,665,411,123.81 | 8,810,309,639.09 | 6,171,780.23 |
Non-current liabilities | 455,453,890.82 | 4,983,100.68 | 493,618,200.85 | 2,517,670.77 | ||
Total liabilities | 1,858,428,733.11 | 8,401,045,934.29 | 12,513,292.28 | 2,159,029,324.66 | 8,810,309,639.09 | 8,689,451.00 |
Minority interests | ||||||
Attributable to parent company shareholders’ equity | 1,868,391,525.39 | 8,109,015,591.15 | 8,420,473,903.85 | 1,682,711,856.93 | 10,037,249,721.72 | 7,790,030,240.47 |
Share of net assets calculated by shareholding ratio | 915,511,847.44 | 2,757,065,300.99 | 1,684,094,780.77 | 824,528,809.90 | 3,412,664,905.38 | 1,558,006,048.09 |
Adjustment matters |
--Goodwill | 267,788,761.35 | 1,407,265.96 | 267,788,761.35 | 1,407,265.96 | ||
--Unrealized profit of internal trading | -9,546,770.23 | -20,692,355.48 | ||||
--Other | -0.28 | -0.28 | ||||
Book value of equity investment in associated enterprise | 915,511,847.44 | 3,015,307,291.83 | 1,685,502,046.73 | 824,528,809.90 | 3,659,761,310.97 | 1,559,413,314.05 |
Fair value of equity investment for the affiliates with consideration publicly | ||||||
Operation income | 3,925,439,987.43 | 13,269,586,309.56 | 30,337,704.69 | 4,983,370,807.15 | 13,443,929,728.58 | 26,913,563.07 |
Financial expense | 7,037,634.39 | 83,168,950.55 | -4,623,827.42 | 37,298,423.01 | -12,919,599.29 | -3,814,000.75 |
Income tax expense | 59,152,017.79 | 287,380,800.90 | 7,155,753.05 | 43,882,305.71 | 494,166,513.51 | 4,465,983.95 |
Net profit | 422,428,917.15 | 2,994,134,912.69 | 2,040,443,663.38 | 354,097,545.31 | 3,059,444,530.82 | 1,876,187,641.39 |
Net profit from discontinued operations | ||||||
Other comprehensive income | ||||||
Total comprehensive income | 422,428,917.15 | 2,994,134,912.69 | 2,040,443,663.38 | 354,097,545.31 | 3,059,444,530.82 | 1,876,187,641.39 |
Dividends received from associated enterprise in the year | 117,600,000.00 | 1,673,605,474.71 | 282,000,000.00 | 147,000,000.00 | 765,837,710.23 | 194,400,000.00 |
Other explanationAdjustment item for other “-0.28”: the differential tail;
(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 | 331,312,321.07 | 239,114,674.05 |
Amount based on share-holding ratio | ||
--Net profit | -22,757,873.48 | 7,198,399.91 |
--Total comprehensive income | -22,757,873.48 | 7,198,399.91 |
Other explanation: Nil
(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 concernedNil
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
NilXI. 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. Liabilities 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 | 124,014,866.23 | 16,385,000.00 | 44,535,440.16 | 95,864,426.07 | Asset related | ||
Deferred income | 3,404,849.87 | 490,987.12 | 2,913,862.75 | Asset/income related | |||
Deferred income | 95,704,262.68 | 10,199,244.26 | 16,051,766.11 | 143,592.64 | 89,995,333.47 | Income related | |
Total | 223,123,978.78 | 26,584,244.26 | 61,078,193.39 | 143,592.64 | 188,773,622.29 |
3. Government grant booked into current gains/losses
?Applicable □Not applicable
In RMB
Accounting title | Current period | Last period |
Other revenue | 75,786,785.30 | 108,331,768.29 |
Other explanation: Nil
XII. Risk related with financial instrument
1. Various risks arising from financial instruments
Main financial instrument of the Company including monetary funds, structured deposits, account receivable, equity instrumentinvestment, financial products, loans, and account payable etc., more details of the financial instrument can be found in relevantitems of Note V. Risks concerned with the above-mentioned financial instrument, and the risk management policy takes for lower therisks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower the adverse impact onperformance of the Company to minimum standards, and maximized the benefit for shareholders and other investors. Base on therisk management targets, the basic tactics of the risk management is to recognized and analyzed the vary risks that the Companycounted, established an appropriate risk exposure baseline and caring risk management, supervise the vary risks timely and reliablyin order to control the risk in a limited range.In business process, the risks with financial instrument concerned happen in front of the Company mainly including credit exposure,market risk and liquidity risk. BOD of the Company takes full charge of the risk management target and policy-making, and takesultimate responsibility for the target of risk management and policy. Compliance department and financial control departmentmanager and monitor those risk exposures to ensuring the risks are control in a limited range.
(1) Credit Risk
Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations, and resulting in the financial lossof other party. The company's credit risk mainly comes from monetary funds, structured deposits, note receivable, account receivable,other account receivables. The management has established an appropriate credit policy and continuously monitors the exposure tothese credit risks.The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions such as commercialbanks, the management believes that these commercial banks have higher credit and asset status, and have lower credit risks. TheCompany adopts quota policies to avoid credit risks to any financial institutions.For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the credit risk exposure.To prevent the risks, the company has formulated a new customer credit evaluation system and an existing customer credit salesbalance analysis system. The new customer credit evaluation system aims at new customers, the company will investigate acustomer’s background according to the established process to determine whether to give the customer a credit line and the credit linesize and credit period. Accordingly, the company has set a credit limit and a credit period for each customer, which is the maximumamount that does not require additional approval. The analysis system for credit sales balance of existing customers means that afterreceiving a purchase order from an existing customer, the company will check the order amount and the balance of the accountsowed by the customer so far, if the total of the two exceeds the credit limit of the customer, the company can only sell to the customeron the premise of additional approval, otherwise the customer must be required to pay the corresponding amount in advance. Inaddition, for the credit sales that have occurred, the company analyzes and audits the monthly statements for risk warning of accounts
receivable to ensure that the company’s overall credit risk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance sheet.
(2) Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to fluctuations in themarket price changes and produce, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market. IRR of theCompany mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, in line with the anticipativechange orientation, choose floating rate or fixed rate, that is the rate in future period will goes up prospectively, then choose fixedrate; if the rate in future period will decline prospectively, than choose the floating rate. In order to minor the bad impact fromdifference between the expectation and real condition, loans for liquid funds of the Company are choose the short-term period, andagreed the terms of prepayment in particular.
(2) Foreign exchange (FX) risk
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly related with the USD,EUR, SF, JPY, HKD, DKK except for the USD, EUR, SF, JPY, HKD and DKK carried out for the equipment purchasing of parentcompany and Autocam, material purchasing of parent company, technical service and trademark usage costs of parent company, theimport and export of Weifu International Trade, operation of IRD, operation of Borit, and operation of VHIO and other mainbusiness of the Company are pricing and settle with RMB (yuan). In consequence of the foreign financial assets and liabilities takesminor ratio in total assets, the Company has small FX risk of the financial instrument, considered by management of the Company.End as 31st December 2023, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of theCompany are carried with RMB
① Foreign currency assets of the Company till end of 31st December 2023:
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in assets (%) |
Monetary funds | ||||
Including: USD | 9,668,849.38 | 7.0827 | 68,481,559.49 | 0.24 |
EUR | 31,497,419.60 | 7.8592 | 247,544,520.12 | 0.88 |
HKD | 914,138.23 | 0.90622 | 828,410.35 | 0.00 |
JPY | 7,975,655.00 | 0.050213 | 400,481.57 | |
DKK | 15,008,361.83 | 1.0536 | 15,812,810.02 | 0.06 |
Account receivable | ||||
Including: USD | 3,671,490.42 | 7.0827 | 26,004,065.20 | 0.09 |
EUR | 26,826,563.09 | 7.8592 | 210,835,324.64 | 0.75 |
JPY | 15,066,940.00 | 0.050213 | 756,556.26 | 0.00 |
DKK | 9,465,657.99 | 1.0536 | 9,973,017.26 | 0.04 |
Other account receivables | ||||
Including: EUR | 277,184.18 | 7.8592 | 2,178,445.91 | 0.01 |
DKK | 2,180,889.68 | 1.0536 | 2,297,785.37 | 0.01 |
Total ratio in assets | 2.08 |
②Foreign currency liability of the Company till end of 31st December 2023:
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in assets(%) |
Account payable | ||||
Including: USD | 1,259,805.06 | 7.0827 | 8,922,821.30 | 0.11 |
EUR | 29,745,541.80 | 7.8592 | 233,776,162.12 | 2.96 |
JPY | 19,496,400.00 | 0.050213 | 978,972.73 | 0.01 |
Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted | Ratio in assets(%) |
DKK | 23,043,173.79 | 1.0536 | 24,278,287.91 | 0.31 |
GBP | 2,450.00 | 9.0411 | 22,150.70 | 0.00 |
CHF | 317,934.39 | 8.4184 | 2,676,498.87 | 0.03 |
Other account payable | ||||
Including: EUR | 13,639.91 | 7.8592 | 107,198.78 | 0.00 |
DKK | 1,230,912.02 | 1.0536 | 1,296,888.90 | 0.02 |
Non-current liabilities due within one year | ||||
Including: USD | 156,484.17 | 7.0827 | 1,108,330.43 | 0.01 |
EUR | 601,051.35 | 7.8592 | 4,723,782.77 | 0.06 |
DKK | 1,257,635.41 | 1.0536 | 1,325,044.67 | 0.02 |
Leasing liabilities | ||||
Including USD | 230,805.29 | 7.0827 | 1,634,724.63 | 0.02 |
EUR | 1,140,990.24 | 7.8592 | 8,967,270.49 | 0.11 |
DKK | 19,974,012.44 | 1.0536 | 21,044,619.51 | 0.27 |
Total ratio in liabilities | 3.93 |
③ Other pricing risk
The equity instrument investment held by the Company with classification as transaction financial asset and other non-currentfinancial assets are measured on fair value of the balance sheet date. The fluctuation of expected price for these investments willaffect the gains/losses of fair value changes for the Company.Furthermore, on the premise of deliberated and approved in 10th meeting of 8th session of the BOD, the Company exercise entrustfinancing with the self-owned idle capital; therefore, the Company has the risks of collecting no principal due to entrust financialproducts default. Aims at such risk, the Company formulated the Management Mechanism of Capital Financing, and well-defined theauthority to entrust financial management, audit process, reporting system, Choice of trustee, daily monitoring and verification andinvestigation of responsibility, etc. In order to lower the adverse impact from unpredictable factors, the Company choose short-termand medium period for investment and investment product’s term is up to 5 years in principle; The variety of investment includesbank financial products, trust plans of trust companies, asset management plans of asset management companies, various productsissued by securities companies, fund companies and insurance companies, etc.
(3) Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the enterprise in way of cashpaid or other financial assets. The Company aims at guarantee the Company has rich capital to pay the due debts, therefore, afinancial control department is established for collectively controlling such risks. On the one hand, the financial control departmentmonitoring the cash balance, the marketable securities which can be converted into cash at any time and the rolling forecast on cashflow in future 12 months, ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on theother hand, building a favorable relationship with the banks, rationally design the line of credit, credit products and credit terms,guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing requirements.
2. Hedge
(1) Risk management for hedge business
□Applicable ?Not applicable
(2) The company conducts eligible hedging business and applies hedging accounting
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 assets
(1) By transfer manner
?Applicable □Not applicable
In RMB
Transfer method | Nature of transferred financial assets | Amount of transferred financial asset | Derecognized or not | Judgment basis for derecognition |
Bill endorsement | Bank acceptance bills in accounts receivable financing that have not yet matured | 127,359,498.05 | Derecognized | Almost all of its risks and rewards have been transferred |
Bill discounting | Bank acceptance bills in accounts receivable financing that have not yet matured | 131,605,542.60 | Derecognized | Almost all of its risks and rewards have been transferred |
Factoring | Unexpired network supply chain "e-communication" in accounts receivable | 14,581,430.53 | Not derecognized | |
total | 273,546,471.18 |
(2) Financial assets derecognized due to transfer
?Applicable □Not applicable
In RMB
Item | Methods of transferring financial assets | Amount of derecognized financial assets | Gains/losses related to de-recognition |
Accounts receivable financing | Bill endorsement | 127,359,498.05 | |
Accounts receivable financing | Bill discounting | 131,605,542.60 | -2,111,334.30 |
Total | 258,965,040.65 | -2,111,334.30 |
(3) Financial assets which are transferred and involved continuously
?Applicable □Not applicable
In RMB
Item | Methods of transferring financial assets | Amount of asset continuously involved | Amount of liability continuously involved |
Accounts receivable | Factoring | 14,581,430.53 | 16,111,371.14 |
Total | 14,581,430.53 | 16,111,371.14 |
Other explanation: Nil
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item | Ending fair value | |||
First level | Second level | Third level | Total | |
I. Sustaining measured at fair value | -- | -- | -- | -- |
1. Financial assets measured at fair value and whose changes are included in current profit or loss | 148,914,616.00 | 3,046,922,649.02 | 3,195,837,265.02 | |
(I) Trading financial assets | 147,830,616.00 | 2,243,656,528.96 | 2,391,487,144.96 | |
(1) Equity instrument investment | 147,830,616.00 | 147,830,616.00 | ||
(2) Other liability instruments and equity instrument investment | 2,243,656,528.96 | 2,243,656,528.96 | ||
2. Other non-current financial assets | 1,084,000.00 | 803,266,120.06 | 804,350,120.06 | |
(1) Equity instrument investment | 1,084,000.00 | 653,266,120.06 | 654,350,120.06 | |
(2) Other liability instruments and equity instrument investment | 150,000,000.00 | 150,000,000.00 | ||
(II) Financial assets measured at fair value and whose changes are included in current profit or loss | 2,339,540,639.46 | 2,339,540,639.46 | ||
1. Receivable financing | 1,661,749,949.46 | 1,661,749,949.46 | ||
2. Other equity instrument investment | 677,790,690.00 | 677,790,690.00 | ||
Total asset sustaining measured by fair value | 148,914,616.00 | 5,386,463,288.48 | 5,535,377,904.48 | |
II. Non-persistent measure of fair value | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on firstlevelOn 31 December 2023, the financial assets available for sale, equity instrument investments held by the Company include SNAT(stock code: 600841) and Miracle Automation (Stock code: 002009). The fair value at the end of the period is determined at theclosing price as of December 29, 2023.On 31 December 2023, the non-current financial assets, equity instrument investments held by the Company include GuolianSecurities (stock code: 601456). The fair value at the end of the period is determined at the closing price as of December 29, 2023
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. Continuous and non continuous third level fair value measurement items
(1) Accounts receivable financing
For this portion of financial assets, 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 maturity of 12 months or less are not discounted, and their fair value is based on cost.
(2) Other equity instrument investments
For this portion of financial assets, due to the lack of market liquidity, the company adopts 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 assets, our company adopts the discounted cash flow valuation technique for determination. Amongthem, important unobservable input values mainly include expected annualized return, risk coefficient, 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 changesNil
8. The fair value of financial assets and financial liabilities 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 assets | 5,496,785,600 | 20.36% | 20.36% |
Note: On January 18, 2024, the registered capital of Wuxi Industrial Group was changed from RMB 5,496,785,600.00 to RMB5,927,940,200.00.Explanation on parent company of the enterpriseWuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’sGovernment. Its business scope includes foreign investment by using its own assets, house leasing services, self-operating and actingas an agent for the import and export business of various commodities and technologies (Except for goods and technologies that arerestricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibited items).
(Projects that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality ofJiangsu Province.Other explanation:
Nil
2. Subsidiary of the Company
For more details of the Company’s subsidiaries, please refer to X-1. “Equity in subsidiary”
3. Joint venture and associated enterprise
For more details, please refer to 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 period or occurred previous:
Nil
4. Other related party
Other related party | Relationship with the Company |
Robert Bosch Company | 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 |
Jiangsu Huilian Aluminum Industry Co., Ltd. (hereinafter referred to as “Huilian Aluminum Industry”) | Enterprises controlled by the parent company |
Wuxi IoT Innovation Center Co., Ltd. (hereinafter referred to as “Wuxi IoT”) | Enterprises controlled by the parent company |
Hebei Machinery Import and Export Co., Ltd. (Hereinafter referred to as “Hebei Machinery”) | Enterprises controlled by the Company’s former director/senior management elder brother |
Hebei Deshuang Trading Co., Ltd. (Hereinafter referred to as “Hebei Deshuang”) | Enterprises controlled by Hebei Machinery |
Hebei Jinda Import and Export Co., Ltd. (Hereinafter referred to as “Hebei Jinda”) | Enterprises controlled by Hebei Machinery |
Hebei Lanpai Technology Co., Ltd. (Hereinafter referred to as “Hebei Lanpai”) | Enterprises controlled by Hebei Machinery |
Hebei Mianzhuo Electromechanical Equipment Sales Co., Ltd. (Hereinafter referred to as “Hebei Mianzhuo”) | Enterprises controlled by Hebei Machinery |
Key executive | Director, supervisor and senior executive of the Company |
Other explanation: Nil
5. Related transaction situation
(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 | 41,669,848.47 | 56,000,000.00 | N | 52,775,709.71 |
RBCD | Goods and labor | 266,965,044.36 | 380,000,000.00 | N | 301,077,307.73 |
WFEC | Goods and labor | 955,325,713.19 | 1,051,000,000.00 | N | 575,378,265.05 |
Robert Bosch Company | Goods and labor | 199,404,542.49 | 300,000,000.00 | N | 232,163,763.73 |
Changchun Xuyang | Goods | 1,500,000.00 | N | 342,520.00 | |
Guokai Metal | Goods | 15,867,033.58 | Y | 14,516,381.84 | |
FAILCONTECH | Goods and labor | 50,600.00 | Y | ||
Huilian Aluminum Industry | Goods | 515,250.00 | Y |
Goods sold/labor service providing
In RMB
Related party | Content of related transaction | Current period | Last Period |
WFPM | Goods and labor | 532,192.80 | 980,889.25 |
RBCD | Goods and labor | 1,673,734,280.25 | 2,220,345,511.60 |
WFEC | Goods and labor | 7,290,384.61 | 944,537.87 |
Robert Bosch Company | Goods and labor | 1,868,727,976.48 | 1,475,458,231.00 |
Changchun Xuyang | Goods and labor | 1,011,193.02 | 286,036.62 |
Lezhuo Bowei | Goods and labor | 9,695,369.27 |
Explaination on related transactions in the purchase and sale of goods, provision and acceptance of labor services: Nil.
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
The Company as lessor:
In RMB
Lessee | Assets type | Lease income recognized in the Period | Lease income recognized at last Period |
WFEC | Workshop | 2,006,634.03 | 2,380,758.09 |
RBCD | Parking lost | 234,000.00 | |
Lezhuo Bowei | Workshop and equipment | 2,715,935.47 |
The Company as lessee: NilExplanation on related leaseWFLD entered into a house leasing contract with WFEC.The plant locating at No.9 Linjiang Road, Wuxi Xinwu District, owed byWFLD, was rented out to WFEC. It is agreed that the rental income from January 1, 2023 to December 31, 2022 was 2,006,634.03yuan.WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leases 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 2,373,906.08 yuan for the year 2023; Lezhuo Bowei also rented some equipment from WFJN, andWFJN confirmed equipment rental income of 342,029.39 yuan in 2023.
(4) Connected guarantee
Nil
(5) Related party’s borrowed/lending funds: Nil
(6) Related party’s assets transfer and debt reorganization: Nil
(7) Remuneration of key manager
In RMB
Item | Current period | Last period |
Remuneration of key manager | 6,620,000 | 6,790,000 |
(8) Related transactions of "platform trade" business
Name of related parties | Current period | Last period | ||
Received "sales payment" | Paid "purchase price" | Received "sales payment" | Paid "purchase price" | |
Hebei Machinery | 2,125,487,770.72 | |||
Hebei Jinda | -56,753,804.02 | 2,015,224,288.59 | ||
Hebei Deshuang | 1,436,757,179.96 | |||
Hebei Lanpai | 609,404,930.22 | |||
Hebei Mianzhuo | 479,253,260.75 | |||
Total | -56,753,804.02 | 2,125,487,770.72 | 4,540,639,659.52 |
Other explaination: 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 byWFTR to Hebei Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo and the "sales payment" received from Hebei Machineryas other receivables. During the year of 2023, the negative amount of "purchase payment" paid by WFTR to Hebei Jinda is the"purchase payment" returned by Hebei Jinda
(9) Other related transactions
Related party | Contents of item | Current period | Last Period |
WFPM | Purchase of fixed assets | 186,000.00 | 50,000.00 |
RBCD | Purchase of fixed assets | 283,185.85 | 4,503,484.90 |
RBCD | Technology royalties paid etc. | -- | 1,147,294.75 |
RBCD | Providing of technical services, etc. | -- | 2,053,000.00 |
Robert Bosch Company | Technology royalties paid etc. | 2,517,526.28 | 2,316,825.65 |
Robert Bosch Company | Purchase of fixed assets | 20,337,308.56 | 49,061,191.70 |
Robert Bosch Company | Providing of technical services, etc. | 2,601,403.49 | -- |
Robert Bosch Company | Sales of fixed assets | 10,066,665.81 | -- |
WFEC | Payable for technical services | 33,396.23 | 102,075.47 |
WFEC | Utilities payable | 1,217,617.88 | 1,187,817.04 |
WFEC | Provide technical services, etc | 42,169.81 | |
WFEC | Selling fixed assets | 253,046.93 | -- |
Lezhuo Bowei | Providing of technology service, etc. | 110,344.34 | -- |
Urban public distribution | Purchase canteen ingredients, etc | 2,074,056.16 | 1,392,464.33 |
Wuxi Industry Group | Providing of technology service, etc. | 160,613.21 | -- |
Wuxi IOT | Purchase of fixed assets | 602,233.50 | -- |
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 | 170,770.59 | 299,389.13 | 10,925.29 | |
Account receivable | RBCD | 686,424,501.80 | 1,017,817.82 | 461,493,652.46 | 174,766.71 |
Account receivable | Robert Bosch Company | 596,846,772.56 | 782,592.70 | 363,021,724.83 | 882,016.11 |
Other account receivables | Robert Bosch Company | 2,500,307.00 | |||
Account receivable | Changchun Xuyang | 220,134.29 | 5,464.91 | ||
Account receivable | WFEC | 1,787,498.57 | 514,638.29 | ||
Other account receivables | WFEC | 147,000,000.00 | |||
Account receivable | Lezhuo Bowei | 3,520,841.22 | |||
Prepayments | Robert Bosch Company | 5,249,715.46 | |||
Other non-current assets | Robert Bosch Company | 470,000.00 | 1,470,000.00 | ||
Other non-current assets | Wuxi Industry Group | 5,452,800.00 | 5,452,800.00 |
(2) Payable item
In RMB
Item | Related party | Ending book balance | Opening book balance |
Account payable | WFPM | 15,511,126.97 | 17,783,464.23 |
Other account payable | WFPM | 29,000.00 | 29,000.00 |
Account payable | WFEC | 480,670,597.42 | 274,115,921.53 |
Account payable | RBCD | 49,028,994.76 | 37,603,958.72 |
Account payable | Robert Bosch Company | 18,947,846.60 | 49,500,046.68 |
Account payable | Guokai Metal | 3.12 | |
Other current liabilities | RBCD | 0.05 | 0.05 |
Other current liabilities | WFEC | 76,030.18 | |
Other current liabilities | Robert Bosch Company | 63,572.08 | |
Other account payable | Robert Bosch Company | 13,308,176.65 | |
Contract liability | RBCD | 0.36 | 0.36 |
Contract liability | Robert Bosch Company | 6,986,398.10 | 510,212.12 |
Contract liability | WFPM | 584,847.43 |
(3) Related debts 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 | 2,015,224,288.59 |
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 | 2,415,151,888.80 |
Note: Because Hebei Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery, based on the
business essence of "platform trade" business, WFTR listed the difference between the "purchase payment" paid by WFTR toHebei Jinda, Hebei Deshuang, Hebei Lanpai and Hebei Mianzhuo and the "sales payment" received from Hebei Machinery2,358,398,084.78 yuan as other receivables, including: The "sales payment" received from Hebei Machinery is presented as anegative number. As of December 31, 2023, the Company has made a bad debt provision of 1,448,358,922.04 yuan for the balanceof other receivables; The bad debt provision balance is calculated by 80.10%, which is the proportion of other receivables balanceof Hebei Machinery and its controlled companies 2,415,151,888.80 yuan to other receivables balance of WFTR's "platform trade"business portfolio 2,741,499,131.95 yuan as of December 31, 2022 multiply the bad debt provision for other accounts receivablebalances in WFTR’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 | 264,264.00 | 6,897,290.40 | ||||||
Administrative staff | 3,507,814.00 | 91,553,945.40 | ||||||
R&D staff | 1,180,287.00 | 30,805,490.70 | ||||||
Production staff | 641,135.00 | 16,733,623.50 | ||||||
Total | 5,593,500.00 | 145,990,350.00 |
Stock options or other equity instruments issued to the public at the end of the 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 | Not applicable |
and estimate in the prior period | |
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 | -30,939,071.92 |
Other explanation: Nil
3. Share-based payment settled by cash
□ Applicable ? Not applicable
4. Current share-based payment expenses
?Applicable □Not applicable
In RMB
Category of grant object | Equity settled share based payment expenses | Cash settled share based payment expenses |
Sales staff | -1,418,102.07 | |
Administrative staff | -19,732,503.59 | |
R&D staff | -6,276,034.25 | |
Production staff | -3,512,432.01 | |
Total | -30,939,071.92 |
Other explanation: Nil
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
Guarantee for subsidiaries:
As of December 31, 2023, the Company has provided guarantees for all debts arising from the performance of its subsidiaries,VHWX and Shenzhen BYD Supply Chain Management Co., Ltd., with the guarantee amount not exceeding RMB 10.00 million.As of December 31, 2023, the Company has provided guarantees of up to RMB 40 million and RMB 55 million respectively for
its subsidiary Zhixing Seats and its subsidiary VHIO, the scope of guarantee includes but is not limited to financing guarantees forfinancing business applications (including loans, bank acceptance bills, foreign exchange derivative transactions, letters of credit,guarantees, etc.) as well as performance guarantees for daily operations.
(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 information required by the Guidelines for Information Disclosure of AutomobileManufacturing Related IndustriesThe Company need to comply with the disclosure requirement on related industry of automobile manufacturing in the ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry InformationMortgage sales, financial leasing and other models of sales accounted for more than 10% of operating income
□ Applicable ? Not applicable
The company’s guarantee to the dealer
□ Applicable ? Not applicable
3. Other
NilXVII. Events Occurring after the Balance Sheet Date
1. Important undertakings
In RMB
Item | Content | The impact on financial condition and operating results | The reason for the inability to estimate the number of impacts |
Issuance of stocks and bonds | NA | NA | NA |
Important outbound investment | NA | NA | NA |
Major debt restructuring | NA | NA | NA |
Natural calamities | NA | NA | NA |
Significant changes in foreign exchange rates | NA | NA | NA |
2. Profit distribution
Proposed distribution of dividends per 10 shares(yuan) | 10.00 |
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) | 10.00 |
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 | The company's 2023 annual profit distribution plan: based on the 977,162,793 shares which exclude the buy-back shares on buy-back account (25,000,000 A-stock) from total share capital 1,002,162,793 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 10.00 yuan (tax included) cash dividend for every 10 shares held, no bonus shares, without capitalization from capital reserves. The remaining undistributed profit is carried forward to the next year. The total amount of cash dividend to be paid is 977,162,793yuan (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 profit distribution plan will be submitted for consideration at the 2023 Annual General Meeting. |
3. Return of sales
NilXVIII. Other important events
1. Previous accounting errors correction
Nil
2. Debt restructuring
Significant debt restructuring not required to be disclosed by the company in this period
3. 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 of replyof plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid by theenterprise 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 total salaryof the employees of the enterprise. In accordance with the State’s annuity policy, the Company will adjuste the economic benefits in
due time, in principle of responding to the economic strength of the enterprise, the amount paid by the enterprise at current periodcontrol in the 8 percent of the total salary of last year, the maximum annual allocation to employees shall not exceed five times theaverage allocation to employees and the excess shall not be counted towards the allocation. The individual contribution is limited to 1%of one’s total salary for the previous year. Specific paying ratio later shall be adjusted correspondingly in line with the operationcondition 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 WFHT withPICC.
5. Termination of operation
Not applicable
6. Segment information
(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 and performanceevaluation 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. Dueto the need for different technologies and market strategies in various businesses or regions, the company independently manages theproduction and operation activities of each reporting segment, evaluates their operating results individually, and decides to allocateresources to them and evaluate their performance.
(2) Financial information for reportable segment
In RMB
Item | Automotive fuel injection system segment | Automotive post processing system segment | Air management system segment | Other automotive components products segment | Offsetting between segments | Total |
Revenue | 5,201,564,655.45 | 3,439,813,189.61 | 667,187,841.47 | 1,784,576,264.45 | 11,093,141,950.98 | |
Cost | 3,960,359,167.71 | 2,991,515,364.14 | 510,869,765.43 | 1,687,568,343.46 | 9,150,312,640.74 |
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities ofeach reportable segment, it should state the reasonsThe Company mainly produces automotive internal combustion engine fuel systems products, automotive components, silencers,purifiers, vacuum and hydraulic pumps, and other related products. The Company determines the reporting segments based onproduct or service content, but due to the mixed operation of related businesses, the total assets, total liabilities, and period expenseshave not been allocated.
(4) Other explanations
Nil
7. Major transaction and events influencing investor’s decision
(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 transferring for review andprosecution, 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 liabilities, 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 December 31, 2023,the balance of the “Platform Trade” business portfolio was RMB2,542,263,400 yuan, and an expected credit loss ofRMB1,644,068,300.00 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 losses. The recoverableamount of debt in the “platform trade” business combination is highly dependent on a series of judicial procedures such asinvestigation, 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) | 1,376,943,595.48 | 906,775,190.29 |
Including: within six months | 1,365,664,197.96 | 889,181,770.09 |
Six months to one year | 11,279,397.52 | 17,593,420.20 |
1-2 years | 9,348,871.78 | 1,173,006.18 |
2-3 years | 732,334.63 | 1,935,713.65 |
Over three years | 6,457,957.26 | 8,653,217.73 |
3 - 4 years | 1,522,747.95 | 172,796.03 |
4 - 5 years | 101,188.83 | 7,881,589.10 |
Over 5 years | 4,834,020.48 | 598,832.60 |
Total | 1,393,482,759.15 | 918,537,127.85 |
(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 | 4,774,540.26 | 0.34% | 4,774,540.26 | 100.00% | 7,705,636.24 | 0.84% | 7,705,636.24 | 100.00% | ||
Including: | ||||||||||
Account receivable with bad debt provision accrued on portfolio | 1,388,708,218.89 | 99.66% | 4,648,838.01 | 0.33% | 1,384,059,380.88 | 910,831,491.61 | 99.16% | 4,023,208.39 | 0.44% | 906,808,283.22 |
Including: | ||||||||||
Including: receivables from customers | 1,219,857,129.33 | 87.54% | 4,648,838.01 | 0.38% | 1,215,208,291.32 | 768,218,575.70 | 83.63% | 4,023,208.39 | 0.52% | 764,195,367.31 |
Receivables from internal related parties | 168,851,089.56 | 12.12% | 168,851,089.56 | 142,612,915.91 | 15.53% | 142,612,915.91 | ||||
Total | 1,393,482,759.15 | 100.00% | 9,423,378.27 | 0.68% | 1,384,059,380.88 | 918,537,127.85 | 100.00% | 11,728,844.63 | 1.28% | 906,808,283.22 |
Bad debt provision accrued on single basis: 4,774,540.26
In RMB
Name | Beginning balance | Ending balance | ||||
Book balance | Bad debt reserve | Book balance | Bad debt reserve | Accrued ratio | Accrued causes | |
BD bills | 7,201,691.00 | 7,201,691.00 | 4,270,595.02 | 4,270,595.02 | 100.00% | Have difficulty in collection |
Tianjin Leiwo Engine Co., Ltd. | 503,945.24 | 503,945.24 | 503,945.24 | 503,945.24 | 100.00% | Have difficulty in collection |
Total | 7,705,636.24 | 7,705,636.24 | 4,774,540.26 | 4,774,540.26 |
Bad debt provision accrued on portfolio: 4,648,838.01
In RMB
Name | Ending balance | ||
Book balance | Bad debt reserve | Accurual ratio | |
Within 6 months | 1,200,695,320.63 | ||
6 months to one year | 7,548,478.39 | 754,847.85 | 10.00% |
1-2 years | 9,197,578.68 | 1,839,515.74 | 20.00% |
2-3 years | 602,128.69 | 240,851.48 | 40.00% |
Over 3 years | 1,813,622.94 | 1,813,622.94 | 100.00% |
Total | 1,219,857,129.33 | 4,648,838.01 |
Explanation on determining the basis of this portfolio:
In the portfolio③, accounts receivable from internal related parties:
Name of related party | Amount | Ratio of bad debt provision (%) |
WFTR | 67,146,422.58 | -- |
WFSC | 62,445,825.31 | -- |
VHWX | 21,771,307.71 | |
WFLD | 8,062,933.87 | -- |
WFTT | 4,374,383.39 | -- |
WFQL | 3,737,701.70 | |
WFAS | 1,312,515.00 | |
Total | 168,851,089.56 | -- |
If the provision for bad debts of accounts receivable is made according to the general model of expected credit losses:
□Applicable ?Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrued | Collected or reversal | Written-off | Other | |||
Bad debt provision | 11,728,844.63 | 2,282,334.65 | 23,131.71 | 9,423,378.27 | ||
Total | 11,728,844.63 | 2,282,334.65 | 23,131.71 | 9,423,378.27 |
Important bad debt provision collected or reversal: Nil
(4) Account receivable actual charged off in the Period
In RMB
Item | Amount charged off |
Jiangsu Nonghua Smart Agricultural Technology Co., Ltd | 23,131.71 |
Major charge-off for the major receivable: Nil
(5) Top 5 receivables and contract assets at ending balance by arrears party
In RMB
Name | Ending balance of account receivable | Ending balance of contract assets | Ending balance of account receivable and contract assets | Ratio in total ending balance of account receivable and contract assets | Ending balance of bad debt reserve and impairment reserve of contract assets |
RBCD | 686,424,501.80 | 686,424,501.80 | 49.26% | 1,017,817.82 | |
Robert Bosch Company | 199,928,467.18 | 199,928,467.18 | 14.35% | 294,416.19 | |
Client 3 | 143,735,925.57 | 143,735,925.57 | 10.31% | 394,188.46 | |
WFTR | 67,146,422.58 | 67,146,422.58 | 4.82% | ||
WFSC | 62,445,825.31 | 62,445,825.31 | 4.48% | ||
Total | 1,159,681,142.44 | 1,159,681,142.44 | 83.22% | 1,706,422.47 |
2. Other accounts receivable
In RMB
Item | Ending balance | Opening balance |
Interest receivable | 842,323.12 | 206,325.34 |
Other account receivables | 1,369,807,069.16 | 1,471,896,113.93 |
Total | 1,370,649,392.28 | 1,472,102,439.27 |
(1) Interest receivable
1) Category of interest receivable
In RMB
Item | Ending balance | Opening balance |
Interest receivable of subsidiary | 842,323.12 | 206,325.34 |
Total | 842,323.12 | 206,325.34 |
2) Significant overdue interest
Other explaination: 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: Nil
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 | 520,080.00 | 1,279,080.00 |
Balance of related party in the consolidate scope | 3,006,132,546.93 | 3,106,006,521.72 |
Security deposit | 3,920,799.33 | 3,738,299.33 |
Social security and provident fund paid | 6,119,110.70 | 6,429,166.22 |
Other | 371,066.21 | 16,781.83 |
Total | 3,017,063,603.17 | 3,117,469,849.10 |
2) By account age
In RMB
Account age | Ending book balance | Beginning book balance |
Within one year (One year included) | 365,322,657.63 | 3,114,813,019.10 |
Including: within 6 months | 134,688,758.70 | 768,880,846.69 |
6 months to one year | 230,633,898.93 | 2,345,932,172.41 |
1-2 years | 2,648,713,049.33 | 588,300.00 |
2-3 years | 218,000.00 | 1,300,000.00 |
Over 3 years | 2,809,896.21 | 768,530.00 |
3-4 years | 2,032,820.00 | 761,330.00 |
4-5 years | 769,876.21 | 0.00 |
Over five years | 7,200.00 | 7,200.00 |
Total | 3,017,063,603.17 | 3,117,469,849.10 |
3) Accrued of bad debt provision
Provision for bad debts based on the general model of expected credit losses:
In RMB
Bad debt reserve | Phase I | Phase II | Phase III | Total |
Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
Balance of Jan. 1, 2023 | 1,505,407.24 | 1,644,068,327.93 | 1,645,573,735.17 | |
Balance of Jan. 1, 2023 in the period | ||||
Current reversal | 1,682,798.84 | 1,682,798.84 | ||
Balance on Dec. 31, 2023 | 3,188,206.08 | 1,644,068,327.93 | 1,647,256,534.01 |
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
4) Bad debt provision accrued, collected or reversal
Bad debt provision accrued in the period:
In RMB
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrued | Collected or reversal | Written-off | Other | |||
Bad debt | 1,645,573,735. | 1,682,798.84 | 1,647,256,534. |
provision | 17 | 01 | ||||
Total | 1,645,573,735.17 | 1,682,798.84 | 1,647,256,534.01 |
Including the important bad debt provision reversal or collected in the 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 | 2,838,260,000.00 | Within 2 year | 94.08% | 1,644,068,327.93 |
WFCA | Balance of related party in the consolidate scope | 96,628,898.93 | Within 1 year | 3.20% | |
IRD | Balance of related party in the consolidate scope | 63,384,448.00 | Within 1 year | 2.10% | |
Borit | Balance of related party in the consolidate scope | 7,859,200.00 | Within 1 year | 0.26% | |
Zhenkunxing Industrial Supermarket (Shanghai) Co., Ltd. | Security deposit | 1,000,000.00 | Over 3 years | 0.03% | 1,000,000.00 |
Total | 3,007,132,546.93 | 99.67% | 1,645,068,327.93 |
7) Those booked into other account receivables due to centralized fund managementNil
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 | 3,116,879,242.19 | 3,116,879,242.19 | 3,080,762,302.11 | 3,080,762,302.11 | ||
Investment in associates and joint venture | 4,891,133,182.10 | 4,891,133,182.10 | 5,289,081,048.99 | 5,289,081,048.99 | ||
Total | 8,008,012,424.29 | 8,008,012,424.29 | 8,369,843,351.10 | 8,369,843,351.10 |
(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 depreciation reserves | |||
Additional Investment | Negative Investment | Provision for impairment loss | Share-based Payment | |||||
WFJN | 188,389,084.34 | -2,684,532.52 | 185,704,551.82 | |||||
WFLD | 470,853,106.52 | -2,996,654.72 | 467,856,451.80 | |||||
WFMA | 171,807,584.71 | -821,389.36 | 170,986,195.35 | |||||
WFCA | 223,351,717.03 | -686,980.02 | 222,664,737.01 | |||||
WFTR | 34,067,014.70 | -340,503.19 | 33,726,511.51 | |||||
WFSC | 51,490,044.27 | -373,358.80 | 51,116,685.47 | |||||
WFTT | 239,283,022.00 | -1,219,642.00 | 238,063,380.00 | |||||
WFAM | 82,454,467.99 | 82,454,467.99 | ||||||
WFDT | 54,081,519.52 | -68,699.29 | 54,012,820.23 | |||||
SPV | 1,195,280,223.97 | 45,630,287.05 | 1,240,910,511.02 | |||||
WFLD(Chongqing) | 265,832.07 | -74,672.07 | 191,160.00 | |||||
WFAS | 878,805.00 | -246,915.00 | 631,890.00 | |||||
WFQL | 225,000,000.00 | 225,000,000.00 | ||||||
VHWX | 143,559,879.99 | 143,559,879.99 | ||||||
Total | 3,080,762,302.11 | 45,630,287.05 | -9,513,346.97 | 3,116,879,242.19 |
(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 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 | Impairment Accrued | Other | |||||
I. Joint venture | ||||||||||||
II. Associated enterprise | ||||||||||||
RBCD | 3,505,746,633.77 | 986,062,287.07 | 1,599,769,939.06 | 2,892,038,981.78 | ||||||||
Zhonglian Electronics | 1,559,413,314.05 | 408,088,732.68 | 282,000,000.00 | 1,685,502,046.73 | ||||||||
WFPM | 54,775,899.02 | -11,775,861.77 | -1,585,695.67 | 41,414,341.58 |
Auto Link | 169,145,202.15 | 10,247,396.31 | 3,288,259.15 | 182,680,857.61 | ||||||||
Lezhuo Bowei | 110,000,000.00 | -20,489,295.60 | -13,750.00 | 89,496,954.40 | ||||||||
Subtotal | 5,289,081,048.99 | 110,000,000.00 | 1,372,133,258.69 | 1,702,563.48 | 1,881,769,939.06 | -13,750.00 | 4,891,133,182.10 | |||||
Total | 5,289,081,048.99 | 110,000,000.00 | 1,372,133,258.69 | 1,702,563.48 | 1,881,769,939.06 | -13,750.00 | 4,891,133,182.10 |
(3) Other explanations
Nil
4. Operating income and cost
In RMB
Item | Current period | Last period | ||
Income | Cost | Income | Cost | |
Main business | 3,398,402,921.46 | 2,767,688,522.76 | 3,524,971,219.66 | 2,995,507,161.73 |
Other business | 169,604,704.58 | 92,512,697.03 | 339,533,776.14 | 268,487,790.90 |
Total | 3,568,007,626.04 | 2,860,201,219.79 | 3,864,504,995.80 | 3,263,994,952.63 |
5. Investment income
In RMB
Item | Current period | Last Period |
Investment income from holding transaction financial asset | 89,973,294.02 | 201,399,105.37 |
Investment income in subsidiaries | 76,552,430.32 | 69,841,550.10 |
Investment income in joint ventures and associated enterprises | 1,372,133,258.69 | 1,427,651,731.23 |
Investment income obtained from the disposal of trading financial assets | 13,352,570.85 | |
Revenue from debt restructuring | -12,000.00 | |
Total | 1,551,999,553.88 | 1,698,892,386.70 |
6. Others
NilXX. Supplementary Information
1. Current non-recurring gains/losses
?Applicable □Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset, including the offsetting portion of the provision for impairment of assets that has been provisioned | 126,538,939.67 | |
Governmental grants reckoned into current gains/losses (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) | 31,251,345.14 | |
Except for the effective hedging operations related to normal business operation of the Company, the gains/losses of fair value changes from holding the trading financial assets and trading financial liabilities, and the investment earnings obtained from disposing the trading financial asset, trading financial liability and financial assets available for sale | 23,096,322.48 |
Gains/losses of assets delegation on others’ investment or management | 94,647,509.98 | |
Reserve for impairment of receivables separately tested for impairment transfer back | 5,862,949.67 | |
Gains/losses of debt restructuring | -323,525.00 | |
Other non-operating income and expenditure except for the aforementioned items, etc. | 22,253,986.90 | |
Accounts receivable charged off in previous years and recovered in current year | 63,149.93 | |
Less: Impact on income tax | 40,956,611.82 | |
Impact on minority shareholders’ equity | 22,464,047.13 | |
Total | 239,970,019.82 | -- |
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable ?Not applicable
The Company does not have other items of profits/losses 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 report 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 | 9.92% | 1.88 | 1.88 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 8.63% | 1.64 | 1.64 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
Nil
4. Other
Please refer to Note V-36 " Changes of important accounting policies and estimation”.
BOD of Weifu High-Technology Group Co., Ltd.
Chairman: _______________
16 April 2024