WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
SEMI-ANNUAL REPORT 2022
August 2022
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of thewhole contents.Wang Xiaodong, Principal of the Company, Ou Jianbin, person in charge of accountingworks and Ou Jianbin, person in charge of accounting organ (accounting principal)hereby confirm that the Financial Report of 2022 Semi-Annual Report is authentic,accurate and complete.All directors are attend the Meeting for the Report deliberation.The forward-looking statements with future plans involved in the Report do notconstitute a substantial commitment for investors. Investors and related parties shouldmaintain sufficient risk awareness and investors are advised to exercise caution ofinvestment risks.The Company may face main risks in future operation and countermeasures aredescribes in the ¡°Management Discussion and Analysis¡±, the investors are advised tocheck them out.The Company has no plan of cash dividend distributed, no cash bonus and capitalizingof common reserves either carried out.
The Report is prepared in Chinese and English respectively. In the event of anydiscrepancy between the two versions, the Chinese version shall prevail.
Contents
Section I. Important Notice, Contents and Interpretation ............................................................. 1
Section II. Company Profile and Main Financial Indexes ............................................................. 5
Section III. Management Discussion and Analysis ......................................................................... 8
Section IV. Corporate Governance ................................................................................................. 22
Section V. Environmental and Social Responsibility .................................................................... 24
Section VI. Important Matters ....................................................................................................... 28
Section VII. Changes in Shares and Particulars about Shareholders ......................................... 38
Section VIII. Preferred Stock .......................................................................................................... 42
Section IX. Corporate Bonds .......................................................................................................... 43
Section X. Financial Report ............................................................................................................ 44
Documents Available for Reference
I. Financial statement carrying the signatures and seals of person in charge of the company, principal of theaccounting works and person in charge of accounting organ (accounting Supervisor);II. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC during the reporting period;III. The Semi-Annual report summary published on China Securities Journal, Securities Times and Hong KongCommercial Daily during the Period.IV. Place for preparation: Office of the BOD of the Company
Interpretation
Items | Refers to | Contents |
Company, The Company, WFHT | Refers to | WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. |
Weifu Group | Refers to | Wuxi Weifu Group Co., Ltd. |
Wuxi Industry Group | Refers to | Wuxi Industry Development Group Co., Ltd. |
Robert Bosch, Robert Bosch Company | Refers to | Robert Bosch Co., Ltd, ROBERT BOSCH GMBH |
RBCD | Refers to | Bosch powertrain Co., Ltd |
WFLD | Refers to | WUXI WEIFU LIDA CATALYTIC CONVERTER CO., LTD. |
WFJN | Refers to | NANJING WEIFU JINNING CO., LTD. |
WFTT | Refers to | NINGBO WEIFU TIANLI TURBOCHARGING TECHNOLOGY CO.,LTD. |
WFCA | Refers to | WUXI WEIFU CHANG?AN CO.,LTD. |
WFMA | Refers to | WUXI WEIFU MASHAN FUEL INJECTION EQUIPMENT CO., LTD. |
WFTR | Refers to | WUXI WEIFU INTERNATIONAL TRADE CO.,LTD. |
WFSC | Refers to | WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.,LTD. |
WFAM | Refers to | WUXI WEIFU AUTOCAM PRECISION MACHINERY CO.,LTD. |
WFDT | Refers to | WUXI WEIFU E-DRIVE TECHNOLOGIES CO., LTD. |
WFAS | Refers to | WUXI WEIFU AUTOSMART SEATING SYSTEM CO., LTD. |
SPV | Refers to | Weifu Holding ApS |
IRD | Refers to | IRD Fuel Cells A/S |
Borit | Refers to | Borit NV |
WFFC | Refers to | Wuxi Weifu Qinglong Power Technology Co., Ltd. |
WFEC | Refers to | Wuxi Weifu Environmental Catalysts. Co., Ltd. |
WFPM | Refers to | Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. |
Zhonglian Electronics | Refers to | Zhonglian Automobile Electronics Co., Ltd. |
Guokai Metal | Refers to | Wuxi Guokai Metal Resources Co., Ltd. |
Hebei Machinery | Refers to | Hebei Machinery Import and Export Co., Ltd |
CSRC | Refers to | China Securities Regulatory Commission |
SZSE | Refers to | Shenzhen Stock Exchange |
The reporting period | Refers to | 1 January 2022 to 30 June 2022 |
Section II Company Profile and Main Financial IndexesI. Company profile
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) | ÎÞÎýÍþæڸ߿Ƽ¼¼¯ÍŹɷÝÓÐÏÞ¹«Ë¾ | ||
Short form of the Company (in Chinese if applicable) | ÍþæÚ¸ß¿Æ | ||
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 |
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. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not
¡õApplicable?Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
¡õApplicable?Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRCand preparation place for semi-annual report have no change in reporting period, found more details in AnnualReport 2021.
3.Other relevant information
Whether other relevant information has changed in the reporting period
¡õApplicable?Not applicable
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
¡õYes ?No
Current period | Same period of last year | Changes in the current period compared with the same period of the previous year (+,-) | |
Operation income (RMB) | 7,321,835,360.98 | 9,037,691,756.24 | -18.99% |
Net profit attributable to shareholders of the listed company(RMB) | 1,232,762,710.95 | 1,645,389,487.32 | -25.08% |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 1,269,045,170.40 | 1,702,220,554.09 | -25.45% |
Net cash flows arising from operating activities (RMB) | -2,493,982,044.89 | 80,191,609.17 | -3,210.03% |
Basic earnings per share (RMB/Share) | 1.25 | 1.66 | -24.70% |
Diluted earnings per share (RMB/Share) | 1.25 | 1.66 | -24.70% |
Weighted average ROE | 6.24% | 8.72% | -2.48% |
Current period-end | period-end of last year | Changes at end of the current period compared with the end of previous year (+,-) | |
Total assets (RMB) | 31,402,279,358.05 | 27,970,858,427.84 | 12.27% |
Net assets attributable to shareholder of listed company (RMB) | 18,976,164,813.52 | 19,398,607,689.65 | -2.18% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
¡õApplicable?Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
¡õApplicable?Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
?Applicable ¡õNot applicable
Unit: RMB/CNY
Item | Amount | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -285,098.92 | |
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) | 26,095,621.93 | |
Profit and loss of assets delegation on others¡¯ investment or management | 508,215.09 | |
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 | -69,141,331.87 | |
Switch back of provision for depreciation of account receivable which was singly taken depreciation test | 593,396.00 | |
Other non-operating income and expenditure except for the aforementioned items | 197,098.29 | |
Less: Impact on income tax | -6,602,079.68 | |
Impact on minority shareholders¡¯ equity (post-tax) | 852,439.65 | |
Total | -36,282,459.45 |
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
¡õApplicable?Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in theQ&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
¡õApplicable?Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/lossdefined as recurringprofit(gain)/loss
Section III Management Discussion and Analysis
I. Main businesses of the company in the reporting period
(1) Main business of the Company
Main business of the Company including the R & D, production and sales of automotive core components. Duringthe reporting period, the main products were diesel fuel injection system products, and exhaust gas treatment systemproducts and air management system products. At the same time, the core component products of the fuel cell havebeen produced and sold in small quantities.
1. Diesel fuel injection system products are widely used for diesel engines of a variety of power, supporting varioustypes of trucks, passenger cars, construction machinery, marine machinery, agricultural machinery, generator sets,etc., and satisfy the National VI and non-road National IV emissions regulations for vehicles. We have been takinga leading position in the industry in terms of product variety, manufacturing scale, market share, etc. While doing agood job in matching with domestic main engines, some products are exported to the Americas, Southeast Asia, theMiddle East and other regions.
2. Exhaust gas treatment system products can meet the National VI and non-road National IV emission regulationsfor vehicles, of which the technical level, market scale and production capacity are in a leading position in China,and are widely used in passenger cars, commercial vehicles, non-road machinery, etc., and can provide strongsupport for the upgrading of the engine manufacturers' products.
3. Air management system products (turbochargers) can meet the National VI and non-road National IV emissionregulations for vehicles, covering commercial vehicles, passenger vehicles, construction machinery, agriculturalmachinery, generator sets and other fields, and supporting major domestic engine manufacturers and OEMs.
4. The fuel cell core components include "one membrane and two plates" (membrane electrode, graphite bipolarplate, metal bipolar plate) and BOP key components, etc., supporting domestic and foreign fuel cell stacks andsystem manufacturers.
(2) Business model of the Company
The Company follows the operating philosophy of ¡°making competitive products, creating famous brands, andachieving joint value growth¡±, implements the business model that parent company unifies the management andsubsidiaries decentralize the production. The parent company is responsible for making strategic developmentplanning and operation targets, and making the unified management, instruction and assessment for the finance,significant personnel management, core raw materials, quality control, and the R&D of technologies.Thesubsidiaries arrange production based on the order management model of market, which makes the subsidiarieskeep the consistent quality with the company, helps keep abreast of customer needs and saving logistics costs,maintain the timeliness of products production and supply, and improve the company¡¯s economic benefits.
(3) Development of the industry
The industry in which the company operates belongs to the automotive components manufacturing industry, whichis closely related to the development of the auto industry. In the first half of 2022, China's auto industry faced with
triple pressures from supply shock, demand contraction, and weakening expectations. The shortage of chip and therise in the price of raw materials for power batteries, especially the outbreaks of the pandemic in Jilin, Shanghai andother regions, caused a serious impact on the supply chain of China's automobile industry chain. From mid to lateMarch to April, the production and sales of automobiles had a sharp decline, posing severe challenges to the steadygrowth of the industry. From January to June 2022, China produced 12.117 million automobiles and sold 12.057million automobiles, a year-on-year decrease of 3.7% and 6.6% respectively.
1. Commercial vehicle market
From January to June 2022, produced 1.683 million commercial vehicles and sold 1.702 million commercialvehicles, a year-on-year decrease of 38.5% and 41.2% respectively. In terms of production and sales of differentmodels, produced 176,000 passenger cars and sold 180,000 passenger cars, declined by 31.8% and 30.5% on a year-on-year basis, respectively; produced 1.507 million trucks and sold 1.522 million trucks, a year-on-year decrease of
39.3% and 42.2% respectively.
The first half of last year, driven by environmental protection policies, enterprises seized the opportunity forswitching emission standards between the National V and the National VI, resulting in a long-term truck purchasepeak, the high production of heavy-duty National V diesel vehicles, which caused insufficient demand, there werestill a small number of vehicles to be sold, in addition, the sales of blue-plate light truck inventory vehicles was alsorelatively slow. Moreover, in the first half of this year, due to the impact of the pandemic, the start of infrastructureconstruction was slow, and the construction speed was lower than expected, so the production and sales of trucksfell sharply on a year-on-year basis. At the same time, the pandemic in the first half of the year had a great impacton the demand for tourism, passenger cars and city buses, and the passenger car market continued to be sluggish.
2. Passenger car market
From January to June 2022, produced 10.434 million passenger vehicles and sold 10.355 million passenger vehicles,an increase of 6.0% and 3.4% on a year-on-year basis, respectively. Production and sales ended a decline, and theoverall level returned to normal. In terms of vehicle models, sedans and SUVs increased slightly on a year-on-yearbasis, while other models still had a decline.Judging from the performance of the passenger car market in the first half of the year, consumer demand has beensuppressed to a certain extent due to the pandemic. Since the end of May, the state and local governments havesuccessively issued a series of powerful policies to stimulate consumption, providing obvious supports for the rapidrecovery and improvement of consumer confidence.
3. New energy vehicle market
From January to June 2022, produced 2.661 million new energy vehicles and sold 2.6 million new energy vehicles,both a year-on-year increase of 1.2 times, and a market share of 21.6%. Among them, the sales of new energypassenger vehicles accounted for 24.0% of the total sales of passenger vehicles, and the proportion of new energyvehicles in Chinese brand passenger vehicles has reached 39.8%.
4. Off road market
In the first half of 2022, the market demand for construction machinery and agricultural machinery will decreasedue to the slowdown of macroeconomic growth, repeated COVID-19, insufficient effective commencement rate ofprojects, adjustment of agricultural machinery subsidy policies and other factors. From January to June 2022, the
sales volume of diesel internal combustion engines for construction machinery was 450000, a year-on-year decreaseof 23.8%; The sales volume of diesel internal combustion engines for agricultural machinery was 650000, a year-on-year decrease of 24.8%.(Note: the above industry data are from CAAM and CICEIA.)
(4) Business of the Company in reporting period
Since this year, facing the rigorous macroeconomic and downward pressure of the auto industry, the Company hasimplemented the annual work targets conscientiously, we achieved a performance better than the industry standardby actively carried out various measures to cope with the challenges. During the reporting period, operation revenuefrom the Company was 7.322 billion yuan, down 18.99% from the same period of last year; the net profit attributableto shareholder of listed company amounted to 1.233 billion yuan, 25.08% drop from the same period of previousyear.Main work carried out by the company during the reporting period:
1. Improved marketing management and accelerated market expansion. Exhaust gas treatment system: steadilyexpanded the hybrid market, and key platform projects had a high acquisition rate. Air management system: airintake products have entered the supply system of many new customers and gradually acquired projects; gasolinesuperchargers achieved mass production, and the sales had a rapid growth. Diesel fuel injection system: the T4 Off-road market of dispensing pump expanded vigorously, with a high coverage rate of major customers and projects.seized the export order market, mechanical products grew rapidly, and Inline pump exports far exceededexpectations. New business products: continued to expand the leading enterprise customers of the electric driveparts business; accelerated the hydrogen fuel cell business, and newly acquired a number of domestic and foreigncustomer projects such as "one membrane and two plates", hydrogen circulating pumps, and valve BOP products;promoted 3D radar mass production projects in an orderly manner, and focused on expanding 4D radar customerprojects; reached cooperation intentions with some customers in wheel motor business.
2.Strengthened technological innovation and promoted new product research and development. Diesel fuel injectionsystem: dual-fuel direct injection products jointly developed localization projects with customers, and completedthe first round of customer engine performance tests; developed platform projects such as methanol pumps andmethanol injectors; carried out research on hydrogen internal combustion engine injection and other projects.Exhaust gas treatment system: in terms of passenger vehicles, completed the development of the light-duty dieselvehicle purifier platform stage has been , and the batch production of key projects of several key customers has beencompleted; in terms of commercial vehicles, completed the development and production conversion of a number ofNational VI platforms and customer projects; for non-road, completed the announcement certification of customersand the development of key projects for many customers. Air intake system: National VI diesel engine and naturalgas projects were progressing in an orderly manner; the gasoline supercharger products achieved SOPs for severalprojects, and successfully obtained the hybrid projects of major customers; the 48V electric supercharger completedthe A sample review. At the same time, key R&D projects such as hydrogen fuel cells and intelligent networkconnections were progressing steadily as planned.
3. Optimized strategic planning and promoted investment cooperation. Optimized the company's new strategicblueprint, and formed a new strategic pattern for the comprehensive development of the four major sectors of
"energy saving and emission reduction", "green hydrogen energy", "smart electric" and "other core components";completed the global capacity planning and production capacity investment planning of hydrogen fuel cells,formulated strategic development planning for PEM water electrolysis hydrogen production system equipment, andcarried out new energy industrial park project planning. Completed the strategic business product planning for theelectric drive core parts business, thermal management system and core parts business, and continued to optimizethe development planning for the millimeter-wave radar business. Comprehensively promoted global capacitybuilding investment in hydrogen energy business, completed investment in R&D and capacity expansion of IRDand Borit; successively established hydrogen energy divisions and hydrogen fuel cell joint ventures, and acceleratedcapacity building in the Asia-Pacific region; implemented thermal management system and parts businessinvestment cooperation, and VH M&A projects were progressing in an orderly manner; participated in theinvestment of industrial funds related to automobiles, and sought cooperation opportunities in the upstream anddownstream industry chains. In the fields of water electrolysis for hydrogen production from renewable energysources, intelligent network connection and other fields, we investigated potential cooperation projects, and activelyplanned for cooperation possibilities.
4.Strengthened quality management and promoted information construction. Deepened the effectiveimplementation of Q11 on site, built a Q11 training base; established development quality management capabilities,improved the identification of quality valves for software evaluation needs, introduced positive development qualitytools, improved software FMEA and special feature management maturity; created a special follow-up re-examinations mechanism for quality improvement; organized the product review of 17 types of core products;promoted the launch of the measuring instrument management system in the business department, and unified andstandardized the management requirements for measuring instruments. The project management system wasreleased to promote the point-to-point connection of the whole process of engineering projects; the construction ofR&D building, new energy industry bases and other projects were steadily advanced. The SAP S4 HANA upgradeproject was officially launched, realizing the upgrade of application version and the migration of historical data, andoptimizing the system capabilities; the process management system project was launched, realizing the systematicapplication of products from design to process management, and standardizing the management process of processdata.; the IT service platform has been operating online.
5. Promoted management upgrade and improved operating efficiency. Completed the performance review andsigning of the company¡¯s organization at all levels, cooperated with the budget management to complete thebusiness plan and budget succession, and formed an optimization plan; promoted the inspection, tracking andcorrection of business monitoring, analysis, and performance of the business department. Optimized theprocurement system, improved the procurement system documents, upgraded the supplier classification, and refinedthe supplier performance management plan, so as to ensure the continuous and efficient operation of theprocurement business. Strengthened the management of inventory and slow-moving materials, strictly reviewed theproduction scheduling plan of slow-moving products and conducted regular inspections. Continued to promote theoperation of the company's risk control compliance internal audit trinity and three risk prevention and controlmanagement mechanisms. Strengthened the introduction of talents related to strategic new businesses, andoptimized the allocation of talent teams; multi-dimensionally promoted the "San Hang Yi Jiang¡± talent capacity
development project, continued to carry out school-enterprise cooperation, and strengthened the training ofindustrial workers.II. Core Competitiveness Analysis
1. Industry and brand advantages. The company was established in 1958, after more than 60 years of development,it has become a famous manufacturer of auto parts at home, and has established long-term and stable cooperativerelations with major domestic main engine factories and vehicle manufacturers, the existing automobile corecomponents main products (including diesel fuel injection system, exhaust gas treatment system, air managementsystem) have strong market competitiveness and higher market share. The company is a pacesetter enterprise inChina's internal combustion engine industry, and ranks in the top 30 enterprises in China¡¯s auto parts industry.
2. Technology and product advantages. The Company is a national high-tech enterprise. It has scientific researchplatforms such as "National Enterprise Technology Center", "National High-tech Research and Development PlanAchievement Industrialization Base", "Post-Doctoral Scientific Research Workstation", "Jiangsu PostgraduateWorkstation" and number of provincial-level engineering and technological research centers, provincial-levelengineering laboratories, and other research and development institutions, mainly focus on fuel injection systems,exhaust gas treatment systems, and air management systems to conduct technical research and product development.The Company has mastered a number of core patented technologies, the main product technical indicators are at theleading level in the industry. In recent years, the Company focuses on the strategic layout in the fields of greenhydrogen and smart electric, established a new energy and network technology research institute, built a hydrogenenergy fuel cell test center, and formed technical research and development capabilities of hydrogen fuel cell corecomponents and intelligent network vehicle products.
3.Management and manufacturing advantages. The Company has a complete organizational structure andmanagement systems process, and has built a financial sharing platforms, which can realize the effective migrationand stable operation of organization & personnel, business & accounting; The established human resourcesinformation system platforms can ensure the timely and accurate standardization of organization, personnel, salaryand attendance; built a purchase sharing system, opened up the information interconnection of enterprises andsuppliers, and achieved the closed-loop management of the procurement process; carried out the Weifu ProductionSystem (WPS) with lean philosophy, established the quality management system with the whole process, and hasstrong capabilities in production and manufacturing, quality assurance, cost control and product delivery.TheCompany focuses on intelligent manufacturing, continues to build intelligent factories with Weifu characteristics,and promotes the application of cloud computing and 5G networks, which can strongly support the Company¡¯sfuture business development.
4. Advantages in marketing and service. The Company has a stable, professional and experienced marketing teamthat can provide targeted support and services according to customer needs, and customer relationships areharmonious. For long-term strategic customers, the company has established a four-in-one marketing collaborationorganization composed of leaders, key account managers, marketing departments, and business departments. TheCompany¡¯s management exchanges regular visits to promote exchanges and cooperation.The Company has arelatively perfect after-sales service system, has built after-sales service network and intelligent service platform,
established special maintenance technology service stations nationwide to regularly provide end users with thetraining of operation and maintenance, fault analysis and judgment and provide customers with fast, timely andprofessional comprehensive after-sales services.
5.Talent team advantage. The Company's management team has extensive experience and a good industryreputation in the Automobile components industry. The Company pays attention to the growth of employees andthe construction of a core talent team. After years of accumulation, it has accumulated a group of professional andhigh-quality management and technical personnel, established a reasonable talent echelon, and provided strongmanpower resource guarantee for the Company's long-term and stable development. The Company's humanresource management system is relatively complete, continuously optimizing various human resource managementsystems to provide a fair value realization platform for employees' career development. The Company pays attentionto the service and care of employees, improves the service experience of employees through the establishment ofemployee self-service platform,and creates a working environment with warmth and sense of belonging.
6. Advantages of international cooperation. The Company is committed to the core auto parts industry, and hascontinued to carry out in-depth cooperation with domestic and foreign strategic partners for a long time. TheCompany began to cooperate with the industry giant Robert Bosch Company in 1984, established a long-term andstable cooperative relationship, and continued to expand cooperation in new business areas, the cooperation modelbetween the two parties has become a model in the industry. At the same time, the Company has established jointventures with Autocam Corporation of the United States and Schmidt Corporation of Germany, and has cooperatedclosely in the field of high-end precision manufacturing. Through long-term cooperation with well-known Europeanand American enterprises, the Company has cultivated a group of middle and senior management and technicalpersonnel who have international communication skills, international vision, and familiarity with internationalstandards and have mastered the international advanced R&D process design, quality control and productionmanagement capabilities, which accelerated the sound development of the Company's business and promoted thedevelopment in international business and market.
7. Excellent corporate culture. The Company takes ¡°quality and intelligence driving a better life¡±as a mission and"100-year Weifu auto core parts industry expert" as a vision, fulfills the core value of "focus, innovation,responsibility, integration", insists on the enterprise spirit of "doing practical things, daring to act, being good atcooperation, bravely contending for the first". Created a cultural system of "quality and intelligence", "quality" and"intelligence" is the Company's cultural double engine, reflecting the persistence of the original aspiration and thepursuit of the future. The excellent corporate culture makes a sustainable operation for the Company, provides strongsupport for the Company to become a trustworthy and respected industrial experts, and plays a positive role inachieving the Company's strategic objectives.III. Main business analysis
Overview
See the ¡°I. Main businesses of the company in the reporting period¡±Change of main financial data on a y-o-y basis
Unit: RMB/CNY
Current period | Same period of last year | y-o-y changes (+,-) | Reasons | |
Operation revenue | 7,321,835,360.98 | 9,037,691,756.24 | -18.99% | |
Operation cost | 6,024,571,742.71 | 7,497,917,157.07 | -19.65% | |
Sales expenses | 79,020,592.43 | 111,193,615.56 | -28.93% | |
Administrative expenses | 277,212,254.79 | 266,226,378.32 | 4.13% | |
Financial cost | 29,774,064.57 | 15,935,073.06 | 86.85% | Increase in borrowings |
Income tax expense | 100,553,787.21 | 117,972,661.22 | -14.77% | |
R&D investment | 289,631,376.50 | 249,583,255.99 | 16.05% | |
Net cash flow arising from operation activities | -2,493,982,044.89 | 80,191,609.17 | -3,210.03% | the purchase volume increase due to the development of platform trade business |
Net cash flow arising from investment activities | 1,556,579,998.88 | 951,130,720.49 | 63.66% | Increase in cash flow due to the maturity of financial |
Net cash flow arising from financing activities | 1,338,690,663.84 | -496,851,948.29 | 369.43% | Increase in borrowings |
Net increase of cash and cash equivalent | 396,766,366.07 | 531,062,209.58 | -25.29% |
Major changes on profit composition or profit resources in reporting period
¡ÌApplicable ¡õNot applicable
During the reporting period, WFTR, a wholly-owned subsidiary of the company, actively expanded the platform trade business andachieved good results.Constitution of operation revenue
Unit: RMB/CNY
Current period | Same period of lat year | Increase/decrease y-o-y(+,-) | |||
Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
Total operation revenue | 7,321,835,360.98 | 100% | 9,037,691,756.24 | 100% | -18.99% |
According to industries | |||||
Automobile components | 6,928,141,770.13 | 94.63% | 8,767,778,890.21 | 97.01% | -20.98% |
Platform trading business | 184,662,503.01 | 2.52% | -- | -- | -- |
Other business | 209,031,087.84 | 2.85% | 269,912,866.03 | 2.99% | -22.56% |
According to products | |||||
Fuel injection system | 3,439,477,050.57 | 46.98% | 3,998,550,461.69 | 44.24% | -13.98% |
Exhaust Gas Treatment System | 3,228,708,237.85 | 44.10% | 4,379,307,721.36 | 48.46% | -26.27% |
Air management system | 259,956,481.71 | 3.55% | 389,920,707.16 | 4.31% | -33.33% |
Platform trading business | 184,662,503.01 | 2.52% | -- | -- | -- |
Other business | 209,031,087.84 | 2.85% | 269,912,866.03 | 2.99% | -22.56% |
According to region | |||||
Domestic | 7,056,320,042.47 | 96.37% | 8,782,591,522.28 | 97.18% | -19.66% |
Foreign | 265,515,318.51 | 3.63% | 255,100,233.96 | 2.82% | 4.08% |
The industries, products, or regions accounting for over 10% of the company¡¯s operating revenue or operating profit?Applicable ¡õNot applicable
Unit: RMB/CNY
Operation revenue | Operation cost | Gross profit ratio | Increase/decrease of operation revenue y-o-y | Increase/decrease of operation cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
According to industries | ||||||
Automobile components | 6,928,141,770.13 | 5,858,547,460.17 | 15.44% | -20.98% | -19.35% | -1.71% |
Platform trading business | 184,662,503.01 | -- | 100.00% | -- | -- | -- |
According to products | ||||||
Fuel injection system | 3,439,477,050.57 | 2,715,439,179.66 | 21.05% | -13.98% | -11.13% | -2.53% |
Exhaust Gas Treatment System | 3,228,708,237.85 | 2,940,323,990.54 | 8.93% | -26.27% | -25.54% | -0.90% |
Air management system | 259,956,481.71 | 202,784,289.97 | 21.99% | -33.33% | -21.99% | -11.35% |
Platform trading business | 184,662,503.01 | -- | 100.00% | -- | -- | -- |
According to region | ||||||
Domestic | 6,847,288,954.63 | 5,606,995,023.25 | 18.11% | -19.56% | -20.09% | 0.53% |
Foreign | 265,515,318.51 | 251,552,436.92 | 5.26% | 4.08% | 1.47% | 2.44% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latestone year¡¯s scope of period-end
¡õApplicable?Not applicable
Reasons for y-o-y relevant data with over 30% changes?Applicable ¡õNot applicable
1. During the reporting period, affected by the macroeconomic situation and the downturn of the automobile industry, the sales of sixcylinder superchargers and natural gas superchargers in the intake system products decreased significantly compared with the sameperiod last year.
2. During the reporting period, WFTR, a wholly-owned subsidiary of the company, actively expanded the platform trade business andachieved good results.IV. Analysis of non-main business?Applicable ¡õNot applicable
Unit: RMB/CNY
Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
Investment income | 928,792,343.97 | 67.75% | Mainly from the joint ventures RBCD and Zhonglian Electronics | Y (The Company¡¯s joint ventures RBCD and Zhonglian Electronics have stable production and operation both on a sustained basis) |
Gain/loss of fair value changes | -74,432,928.14 | -5.43% | Mainly refers to the changes in the fair value of the shares of listed companies held by the company | |
Asset impairment | -104,219,783.98 | -7.60% | Mainly due to inventory depreciation loss | |
Non-operating income | 218,285.29 | 0.02% | ||
Non-operating expense | 2,196,565.87 | 0.16% |
V. Assets and liability
1. Major changes of assets composition
Unit: RMB/CNY
End of the current period | End of last year | Ratio changes(+,-) | Notes of major changes | |||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Monetary fund | 2,357,955,196.57 | 7.51% | 1,896,063,265.69 | 6.78% | 0.73% | |
Account receivable | 4,545,410,759.88 | 14.47% | 2,053,800,293.77 | 7.34% | 7.13% | Mainly the increase of platform trade business |
Inventory | 2,167,754,348.61 | 6.90% | 3,445,396,375.09 | 12.32% | -5.42% | Consumption of inventory and decrease of finished products |
Investment real estate | 18,653,199.32 | 0.06% | 19,387,746.56 | 0.07% | -0.01% | |
Long-term equity investment | 5,582,235,398.43 | 17.78% | 5,717,944,788.12 | 20.44% | -2.66% | |
Fix assets | 2,954,329,704.27 | 9.41% | 2,932,210,452.51 | 10.48% | -1.07% | |
Construction in progress | 500,684,157.53 | 1.59% | 387,429,933.08 | 1.39% | 0.20% | Increase in fixed assets investment |
Right-of-use assets | 28,757,850.60 | 0.09% | 23,148,405.58 | 0.08% | 0.01% | |
Short-term loans | 4,187,682,800.94 | 13.34% | 1,437,958,206.55 | 5.14% | 8.20% | Increased borrowings for platform trade business |
Contractual liability | 93,104,665.28 | 0.30% | 136,427,636.39 | 0.49% | -0.19% | Due settlement of contract liability business |
Long-term loans | 200,000,000.00 | 0.64% | 0.00% | 0.64% | Financing structure adjustment | |
Lease liability | 21,504,518.33 | 0.07% | 15,795,469.25 | 0.06% | 0.01% | Lease of new plant and equipment |
2. Major foreign assets
?Applicable ¡õNot applicable
Assets | Formation reasons | Assets size | Location | Operation model | Controls to safeguard the security of assets | Earnings status | Foreign assets as a percentage of the Company¡¯s assets | Whether there is a significant risk of impairment |
IRD Fuel Cells A/S | Enterprise combined under the different control | RMB 500.119 million | Denmark | The wholly-owned subsidiary of the Company, development, production and sales of the component products of fuel cell | The Company will pay full attention to the changes in industry and market, strengthen the corporate governance, personnel management, financial management, auditing supervision and performance assessment | N/A | 2.64% | N |
Borit NV | Enterprise combined under the different control | RMB132.6833 million | Belgium | The wholly-owned subsidiary of the Company, production and sales of the component products of fuel cell | The Company will pay full attention to the changes in industry and market, strengthen the corporate governance, personnel management, financial management, auditing supervision and performance assessment | N/A | 0.70% | N |
3. Assets and liability measured by fair value
?Applicable ¡õNot applicable
Unit: RMB/CNY
Items | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Amount of sale in the period | Other changes (+,-) | Amount at period-end |
Financial assets | ||||||||
1.Trading financial asset(excluding derivative financial assets) | 7,692,496,307.12 | -74,432,928.14 | 4,467,213,265.48 | -6,519,715,515.15 | 5,565,561,129.31 | |||
2.Other equity instrument investment | 285,048,000.00 | 392,742,690.00 | 0.00 | 677,790,690.00 | ||||
3. Account receivable financing | 713,017,014.50 | 162,560,570.30 | 875,577,584.80 | |||||
4. Forex contracts | 74,734,940.30 | 212,552,603.87 | -265,068,221.00 | 22,219,323.17 | ||||
Subtotal of financial assets | 8,765,296,261.92 | -74,432,928.14 | 5,072,508,559.35 | -6,622,223,165.85 | 7,141,148,727.28 | |||
Above total | 8,765,296,261.92 | -74,432,928.14 | 5,072,508,559.35 | -6,622,223,165.85 | 7,141,148,727.28 | |||
Financial liabilities | 0.00 | 0.00 |
Other changes refers tot he redemption at maturityWhether there have major changes on measurement attributes for main assets of the Company in report period or not
¡õYes ?No
4. The assets rights restricted till end of the period
Unit: RMB/CNY
Item | Book value at period-end | Restriction reason |
Monetary fund | 41,882,720.34 | Cash deposit paid for bank acceptance |
Monetary fund | 188,440.00 | Cash deposit for Mastercard |
Monetary fund | 4,185,316.40 | Court freeze |
Note receivable | 335,966,479.97 | Notes pledge for bank acceptance |
Account receivable financing | 142,178,619.60 | Notes pledge for bank acceptance |
Trading financial asset | 188,795,623.32 | In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as Shenzhen Intermediate People's Court), the property with the value of 217 million Yuan under the name of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) was frozen. As of the end of the reporting period, 4.71 million shares of Miracle Automation and 11,739,102 shares of SNAT held by the Company were frozen. |
Total | 713,197,199.63 | -- |
VI. Investment analysis
1. Overall situation
¡õApplicable?Not applicable
2. The major equity investment obtained in the reporting period
¡õApplicable?Not applicable
3. The major non-equity investment doing in the reporting period
¡õApplicable?Not applicable
4. Financial assets investment
(1) Securities investment
?Applicable ¡õNot applicable
Unit: RMB/CNY
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 period-end | Accounting subject | Capital Source |
Domestic and foreign stocks | 600841 | SNAT | 199,208,000.00 | Measured by fair value | 153,643,308.00 | -41,170,692.00 | -41,170,692.00 | 112,472,616.00 | Trading financial asset | Own funds | |||
Domestic and foreign stocks | 002009 | Miracle Automation | 69,331,500.00 | Measured by fair value | 113,793,600.00 | -26,658,600.00 | -26,658,600.00 | 87,135,000.00 | Trading financial asset | Own funds | |||
Domestic and foreign stocks | 601456 | Guolian Securities | 12,000,000.00 | Measured by fair value | 208,795,178.00 | -9,813,767.00 | -9,813,767.00 | 198,981,411.00 | Trading financial asset | Own funds | |||
Domestic and foreign stocks | 601777 | Lifan Technology | 62,845.00 | Measured by fair value | 77,802.11 | -8,044.16 | -8,044.16 | 69,757.95 | Trading financial asset | Own funds |
Domestic and foreign stocks | 000980 | Zotye | 613,265.48 | Measured by fair value | -72,776.52 | 613,265.48 | -72,776.52 | 540,488.96 | Trading financial asset | Own funds | |||
Total | 281,215,610.48 | -- | 476,309,888.11 | -77,723,879.68 | 0.00 | 613,265.48 | 0.00 | -77,723,879.68 | 399,199,273,91 | -- | -- | ||
Disclosure date of securities investment approval of the Board | 2012-03-24 | ||||||||||||
2013-06-04 | |||||||||||||
Disclosure date of securities investment approval of General Meeting(if applicable) | |||||||||||||
Note: 1) SNAT is formerly known as SDEC, which has a name changed during the reporting period; 2) ST Zotye is resulted by the transfer of receivables to shares from WFLD. |
(2) Derivative investment
¡õApplicable?Not applicable
There are no derivative investment during the reporting period.
5. Application of raised proceeds
¡õApplicable?Not applicable
There are no application of raised proceeds during the reporting period.
VII. Sales of major assets and equity
1.Sales of major assets
¡õApplicable?Not applicable
No major assets were sold during the reporting period.
2. Sales of major equity
¡õApplicable?Not applicable
No major equity were sold during the reporting period.
VIII. Analysis of the main equity participation and controlling subsidiary
?Applicable ¡õNot applicableMain subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
Unit: RMB/CNY
Company name | Type | Main business | Register capital | Total assets | Net assets | Operation income | Operation profit | Net profit |
WFLD | Subsidiary | Exhaust gas treatment system products | 502,596,300.00 | 6,271,286,452.43 | 2,420,109,469.19 | 3,287,233,284.58 | 148,289,843.47 | 138,297,551.67 |
WFJN | Subsidiary | Fuel injection system | 346,286,825.80 | 1,472,348,435.92 | 1,102,536,370.45 | 447,804,363.41 | 72,979,744.63 | 65,145,897.60 |
products | ||||||||
RBCD | Equity participation enterprise | Fuel injection system products | 382,500,000.00 | 17,986,727,113.38 | 8,589,683,121.91 | 8,322,989,203.32 | 1,900,166,894.31 | 1,687,151,931.01 |
Zhonglian Electronics | Equity participation enterprise | Gasoline system products | 600,620,000.00 | 7,732,113,510.27 | 6,755,050,308.74 | 9,460,906.82 | 843,080,505.79 | 841,207,709.66 |
Subsidiary obtained and disposed in the Period?Applicable ¡õNot applicable
Name | Mode of acquisition and disposal during the reporting period | Impact on overall operation and business performance |
Wuxi Weifu Qinglong Power Technology Co., Ltd. | Investment set-up | The enterprise mainly engaged in the R&D, production and sale of the core component products related with hydrogen fuel cell. Establishment of the subsidiary had no major impact on the overall operation and business performance of the Company during the reporting period. |
Explanation on holding equity participation enterpriseAffected by the macroeconomic and downward of the auto industry, the operation income and net profit from WFLD, WFJN, RBCDand Zhonglian Electronics have a y-o-y decline in various degrees.IX. The structured subject controlled by the Company
¡õApplicable?Not applicable
X. Risks and countermeasures
1. Macro economy and market risks
Suffered by the COVID-19 epidemic, the macro economy and market environment are still complicated and severe, and the industrywill still face greater pressure. If industry demand declines, it will have a certain impact on the company's production and operationand profitability.Countermeasures: The company will always pay attention to macroeconomic and industry development trends, consolidate its currentbusiness market position, actively expand new businesses, and strive to improve the company's core competitiveness and overall riskresistance.
2. Operating management and control risks
As the company¡¯s business scope continues to expand, especially in the new energy field, the management span is rather large andthere are potential operating management and investment risks.The external environment was affected by the epidemic, the varyingaffected degree of customers and sales declines, restrictions on logistics and transportation areas, delayed payment by some customers,and increased pressure on fund operation quality and repayment has brought certain risks to the company¡¯s business.Countermeasures: the company will continue to promote the optimization and improvement of internal management, perfect theprocedures, further manage standardization and control the management risks; focus on the impact of market dynamics on the Company;continue to develop strategy customers, and gradually strengthen the new business market connection and new new products promotion.
3.The risks of fluctuations in raw material prices
The company's main raw materials include various grades of steel, aluminum, precious metals, etc., the continuous rise in prices willbring the risks of rising costs to the company.Countermeasures: the company will actively improve market forecasting ability, plan for production capacity in advance, reasonablycontrol raw material inventory to reduce the risk of raw material price fluctuations. At the same time, it will continue to optimize supplychain management, strengthen the vertical integration capability of the industrial chain, and transfer some risks through cost control
measures and product price adjustments to reduce the impact of raw material price fluctuations on performance.
4. Risks associated with financial instruments
The company's main financial instruments include monetary funds, structured deposits, receivables, equity instrument investments,wealth management products, loans, payable, etc. In the operation process, the risksrelated to financial instruments faced by thecompany mainly include credit risk, market risk and liquidity risk.Countermeasures: confirm and analyze the various risks faced by the Company, establish an appropriate risk tolerance bottom lineand carry out risk management, and timely monitor various risks to ensure that the risks are controlled within a limited range and thenegative impact of the risks on the company¡¯s operating performance is reduced to the minimum level to maximize the interests ofshareholders and other investors.
Section IV. Corporate Governance
I. AGM and extraordinary general meeting
1. AGM held in the period
Meeting
Meeting | Type | Participation ratio for investors | Holding date | Disclosure date | Resolutions |
Annual General Meeting of 2021 | AGM | 40.82% | 2022-05-18 | 2022-05-19 | Notice No.: 2022-036 released on Juchao Website (www.cninfo.com.cn) |
2. Request for extraordinary general meeting by preferred stockholders with rights to vote
¡õApplicable?Not applicable
II. Changes of directors, supervisors and senior executives
¡õApplicable?Not applicable
There were no changes in the directors, supervisors and senior executives during the reporting period, found more in the AnnualReport 2021.III. Profit distribution plan and capitalizing of common reserves in the period
¡õApplicable?Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annualIV. Implementation of the stock incentive plans, employee stock ownership plans or otheremployee incentives
?Applicable ¡õNot applicable
1. Stock incentive
On October 12, 2020, the Company held the 17
th session of the 9
th
Board of Directors to deliberated and approvedrelevant proposal as the "Restricted Stock Incentive Plan 2020 (Draft)".On November 3, 2020, the Company held the second extraordinary shareholders¡¯ general meeting of 2020 todeliberated and approved relevant proposals as the "Restricted Stock Incentive Plan 2020 (Draft) and its summary","Proposal on Assessment Management Measures for Restricted Stock Incentive Plan Implementation" and"Proposal to Request the Shareholders¡¯ General Meeting to Authorized BOD to Fully Handle Matters RegardingStock Incentive"On November 12, 2020, the Company held the 21
st session of 9
thBOD, as authorized by the second extraordinaryshareholders¡¯ general meeting of 2020, deliberated and approved the "Proposal on Adjusting the List of IncentiveObjects of the Restricted Stock Incentive Plan and the Number of Rights Granted" and the "Proposal on the First
Grant of Restricted Stocks to Incentive Objects of the 2020 Restricted Stock Incentive Plan". The BOD considersthat conditions for the initial grant of 2020 restricted stock incentive plan have been met, and November 12, 2020is determine as the initial grant date, 19,540,000 restricted shares are granted to 601 incentive recipients at a grantprice of 15.48 yuan/Share.The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Companydated December 8, 2020.On October 22, 2021, the Company held the 5
th session of 10
thBOD to deliberated and approved relevant proposalsas Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back andCancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020, and decided to buy-back and cancel 291,000 restricted shares held by 11 incentive recipients that had been granted but not yet unlocked.As of December 20, 2021, cancellation of the above mentioned buy-back shares are completed at the ShenzhenBranch of CSDC. After cancellation, number of the incentive recipients for the first grant of 2020 restricted stockincentive plan was adjusted from 601 to 590, restricted stock of 19,249,000 shares are being held in total.
2. Implementation of employee stock ownership plan
¡õApplicable?Not applicable
3. Other employee incentives
¡õApplicable?Not applicable
Section V. Environmental and Social Responsibility
I. Important environmental issuesThe listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:
?Yes ¡õNo
Company/Subsidiary
Company/Subsidiary | Main pollutants and featured pollutant | Emission mode | Number of outfalls | Distribution of emission outlets | Emission concentration | Pollutant emission standards implemented | Total emissions | Total emission approved | Excessive emission |
WFHT | Chemical oxygen demand(COD), ammonia nitrogen, total nitrogen, total nitrogen and petroleum | Discharged to the municipal sewage pipe network after treatment by sewage treatment station of the Company | 1 | WFMS¡¯s sewage outlets | COD 75mg/l, ammonia nitrogen 15.5mg/l, total phosphorus 0.1mg/l, total nitrogen 16.6mg/l, petroleum 0.8mg/l | Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) | COD 7.34 tons, ammonia nitrogen 1.52 tons, total phosphorus 0.01 tons, total nitrogen1.62 tons, petroleum 0.08 tons | COD 78 tons, ammonia nitrogen 7.8 tons, total phosphorus 0.52 tons, total nitrogen10.4 tons, petroleum 1.95 tons, | N/A |
COD , ammonia nitrogen , petroleum , total nitrogen, petroleum | Discharged to the municipal sewage pipe network after treatment by sewage treatment station of the Company | 1 | WFAC¡¯s sewage outlets | ammonia nitrogen 32.2mg/l, total nitrogen 40.2mg/l , total phosphorus 3.41mg/l, petroleum 1.84mg/l | Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) | tons, total phosphorus 0.027 tons, petroleum 0.015tons, | COD ¡Ü8.924tons, ammonia nitrogen ¡Ü0.682tons, total nitrogen¡Ü1.017tons, total phosphorus ¡Ü0.094tons, petroleum ¡Ü0.410 tons | N/A | |
NMTHC | Organized emission of waste gas after HCY-W + active carbon adsorption | 19 | 5 in machine workshops, 10 in heat treatment workshops and 4 in assembly workshops | 1.5mg/l | Integrated Emission Standard of Air pollutants (GB16297-1996) | 1.16 tons | 2.523 tons | N/A | |
NMTHC | Organized emission of waste gas after HCY-W + active carbon adsorption | 4 | 4 in 101 workshop | 1.94mg/l | (GB16297-1996) | 0.27864 tons | 1.152 tons | N/A |
Ammonia
Ammonia | Organized emission of ammonia after spray tower adsorption | 1 | 1 in heat treatment workshops | Ammonia 0.7 mg/l | Emission Standards for Odor Pollutants (GB14554-93) | Ammonia 0.0117 tons | Ammonia 0.071tons | N/A | |
Particulates | Organized emission of particulates after fabric filter | 2 | 2 in heat treatment workshops | 2mg/m3 | Integrated Emission Standard of Air pollutants (GB16297-1996) | 0.0027 tons | 0.048 tons | N/A | |
Hazardous wasters as waste oil, waste emulsion, cleaning fluid, grinding wheel ash, sewage pre-treatment sludge, oil-containing cartridge, and the rest | Entrusted with the legally qualified units for disposal | Not applicable | Not applicable | Not applicable | Not applicable | 436.539 tons | 946.2 tons | N/A | |
WFCA | COD, ammonia nitrogen , total phosphorus , total nitrogen, suspensions | Discharged to the municipal sewage pipe network after treatment by sewage treatment station of the Company | 1 | Sewage outlets | COD 41mg/L, suspensions 11mg/L, ammonia nitrogen 0.28mg/L, total phosphorus 0.055mg/L, total nitrogen 5.01mg/L | Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) | COD 1.7737tons, suspensions 0.4759 tons, ammonia nitrogen 0.0121 tons, total phosphorus 0.0024 tons, total nitrogen 0.2167 tons | COD 35.018 tons, suspensions 26.263 tons, ammonia nitrogen 2.626 tons, total phosphorus 0.438 tons, total nitrogen3.502 tons | N/A |
WFJN | COD , ammonia nitrogen | Discharged to the municipal sewage pipe network after treatment by sewage treatment station of the Company | 1 | Sewage outlets | ammonia nitrogen 20mg/L | Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) | COD 5 tons, ammonia nitrogen 1 tons | Not applicable | N/A |
Entrusted with the legally qualified units for disposal | Not applicable | Not applicable | Not applicable | Not applicable | 145.71 tons | Not applicable | N/A |
Construction and operation of pollution prevention facilities(i) Improve environmental protection system and enhance environmental protection managementEach company has set up a special environmental protection department to carry out the company's environmental protection work,hired professional environmental protection management personnel, established an environmental protection management system andrelated systems, carried out environmental protection management knowledge training, arranged special personnel to operate andmaintain environmental protection treatment facilities, and continuously improved the company's environmental protectionmanagement performance.(ii) Comply with environmental laws, regulations and rulesEach company strictly abides by the Environmental Protection Law of the People's Republic of China, the Water Pollution Preventionand Control Law of the People's Republic of China, the Air Pollution Prevention and Control Law of the People's Republic of China,the Law on the Prevention and Control of Environmental Pollution by Solid Wastes of the People's Republic of China, and theEnvironmental Noise Pollution Prevention and Control Law of the People's Republic of China and other laws and regulations, at thesame time, the company has formulated a series of internal rules and regulations, such as Environmental Protection ManagementSystem, Wastewater Discharge Management Measures, Exhaust Emissions Management Measures, Solid Wastes ManagementMeasures, Environmental Noise Management Measures and Contingency Plan for Environmental Emergencies, and earnestly fulfillsthe responsibilities of protecting the environment.(iii) Strengthen the management of pollutant emissions1£®Carry out environmental monitoring and strengthen pollution discharge monitoringEach company has installed online monitoring equipment for major pollutants and completed networking in accordance with therequirements of the environmental protection department to realize real-time monitoring of the concentration of major pollutants, atthe same time, entrusted a qualified environmental testing unit to carry out regular environmental monitoring on the discharge of wastewater, waste gas and environmental noise, so as to further grasp the comprehensive discharge of pollutants.Environmental monitoring to further grasp the overall discharge of pollutants.
2. Implement manufacturing process upgrades to reduce pollution, reduce consumption and increase efficiencyThe company uses low-volatile VOC raw and auxiliary materials process substitution to reduce pollutant emissions at the source;increases investment in reuse equipment such as reclaimed water reuse, and reduces pollutant emissions at the end.
3.Improve the operation and maintenance level of environmental protection facilities to ensure that pollutants are discharged up tostandard.The company continues to increase investment in environmental protection, continuously upgrades and transforms waste water, wastegas and other environmental protection treatment facilities; formulates and revises operational documents such as environmentalprotection management operation instructions, further standardizes the management of environmental protection facilities, carries outdaily spot inspections, workshop inspections, and random checks to supervise and guarantee the effective operation of the treatmentfacilities so as to ensure that all kinds of pollutants are discharged up to the standard.Environmental impact assessment of construction projects and other administrative licenses for environmental protectionAll companies strictly abide by the Environmental Impact Assessment Law of the People's Republic of China, Regulations Concerningthe Environmental Protection Management and other laws and regulations at all stages of project construction and operation to ensurethat the environmental protection facilities of the construction project and the main body of the project are designed, constructed andput into production at the same time. During the reporting period, all construction projects were approved by the competentenvironmental protection department. During the reporting period, all projects passed the environmental protection acceptanceinspection by the competent environmental protection department before they were put into production.Contingency plan for environmental emergenciesEach company prepares or revises the Contingency Plan for Environmental Emergencies in a timely manner in accordance with therelevant requirements of the contingency plans for environmental emergencies of enterprises and institutions, and files them with the
local environmental protection authority. Each company prepares an annual emergency plan drill plan and organizes drills on a regularbasis to ensure effective control of emergencies and reduce harm to the environment.Environmental self-monitoring programEach company regularly entrusts third-party monitoring agencies to carry out environmental monitoring of pollutants such as wastegas, waste water and noise as required, so as to keep abreast of pollutant emissions in a timely manner.Administrative penalties for environmental issues during the reporting periodNoOther environmental information that should be disclosedRegularly carry out internal and external audits of the environmental management system, and continuously improve the environmentalmanagement level through self-examination and external supervision to ensure the company's legal and compliant pollution dischargeand the effective operation of the environmental management system.Measures taken to reduce carbon emissions during the reporting period and their effects?Applicable ¡õNot applicableAs an important part of the company¡¯s core value, saving resources and reducing consumption, on the one hand, are conducive to theimprovement of enterprise efficiency, and at the same time, are also conducive to the improvement of resource utilization rate of thewhole society. Therefore, the company continuously improves resource utilization rate through technological innovation, vigorouslypromotes energy conservation and emission reduction, and strives to achieve green production.The company¡¯s existing main business is based on the energy saving and emission reduction of automobiles. At present, the company¡¯smain products have all met the requirements of national emission regulations, and we are actively stocking products that meet morestringent emission regulations. In recent years, the company has accelerated the layout and development of new energy businesses suchas green hydrogen energy and intelligent electric power, which helps achieve the goals of peak carbon dioxide emissions and carbonneutrality.Other environmental related informationNilII. Social responsibility
During the reporting period, the company organized employees a donation of 75,000 yuan to the Red Cross Society of Wuxi. Thecompany has been awarded the honorary unit of Wuxi "Red Cross Donating-raising Work Organization Award" for many consecutiveyears. In March of this year, the company's labor union and all female employees joined hands with Wuxi Special Education Schoolto carry out a book donation activity, caring for the vulnerable groups around them with practical actions, and conveying care and bestwishes to the children at the special school. A total of 1,611 books were donated this time, including classics, children's books, sciencestories, etc. Since this year, the company has provided real assistance through various channels such as Wuxi Federation of TradeUnions, Red Cross Society, "Weifu Group Public Welfare Mutual Aid Fund" and other channels, helping employees solve problems,such as disease, education and difficulties, totally assisted 77 employees, with 328,600 yuan in total. The employees of the companyalso joined the "Wuxi Happy Volunteers" to go to the nursing homes in Wuxi to offer love and warmth to the elderly.The company actively built the trade union work brand of "Wei Gongyi ¡¤ Fu Xiangzhu" of "red leadership enjoys high prestige",actively undertook social responsibility, strengthened the concept of social responsibility, gathered the strength of employees, workedhard, overcame difficulties together, and established a good corporate image so as to contribute to promoting the sustainabledevelopment of the enterprise and boosting the high-quality economic development of the company.
Section VI. Important Matters
I. Undertakings that the actual controller, shareholders, related party, buyers and theCompany have fulfilled during the reporting period and have not yet fulfilled by the end ofreporting period
¡õApplicable?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 periodII. Non-operational fund occupation from controlling shareholders and its related party
¡õApplicable?Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
¡õApplicable?Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report of semi-annual report has been audited
¡õYes ?No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for ¡°Non-standard auditreport¡± that issued by CPA
¡õApplicable?Not applicable
VI. Explanation from the BOD on the previous year¡¯s ¡°non-standard audit report¡±
¡õApplicable?Not applicable
VII. Bankruptcy reorganization
¡õApplicable?Not applicable
No bankruptcy reorganization occurred during the reporting period.
VIII. LitigationMajor litigation and arbitration
¡õApplicable?Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation?Applicable ¡õNot applicable
Basic Situation of
Litigation(Arbitration)
Basic Situation of Litigation (Arbitration) | Amount Related to the Case (10¡¯000Yuan) | Whether Formed Accrued Liabilities | Progress of Litigation (Arbitration) | Trial Results and Effects of Litigation (Arbitration) | Judgment Implementation of Litigation (Arbitration) | Disclosure Date | Disclosure Index |
On March 6, 2017, the company received the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 from Shenzhen Intermediate People's Court about the dispute case that the plaintiff applicant China Cinda Asset Management Co., Ltd. Shenzhen Branch (hereinafter referred to as ¡°Cinda Company¡±) appealed the respondent Weifu High Technology and other seven respondents and the shareholders of the third party Hejun Company damaged the interests of corporate creditors, which adopted the mandatory measures to freeze the assets with value of RMB 217 million under the name of the Company and other seven respondents and Hejun Company. Freeze 4.71 million shares of Miracle Automation and 15.3 million shares of SNAT Stock held by the company. | 21,703 | N | This litigation will not affect the company¡¯s daily operating activities for the time being | Not yet implemented | 2017-03-08 | (Announcement No.: 2017-002, 2017-023) published on Juchao Website (www.cninfo.com.cn) |
The Company hasapplied to FutianPeople's Court ofShenzhen forcompulsoryliquidation withHejun Company
The Company has applied to Futian People's Court of Shenzhen for compulsory liquidation with Hejun Company | 3,300 | N | The Company has applied to Futian People's Court of Shenzhen for compulsory liquidation with Hejun Company. The civil ruling paper (Yue (0304) QS [2017] No. 5) made by Shenzhen Futian District People¡¯s Court ruled that Hejun Company should be made compulsory liquidation.In process of the case, the liquidation team found that Hejun Company was insolvent and turned to the Shenzhen Intermediate Court to apply for bankruptcy. The Company has received the a Civil Ruling Letter from Shenzhen Intermediate Court. Hejun Company declared to bankruptcy and terminated the bankruptcy proceedings for Hejun Company. | There is no impact on daily operation activities of the Company | Shenzhen Intermediate Court declares the bankruptcy of Hejun Company | 2017-12-06 | (Announcement No.: 2017-023) published on Juchao Website (www.cninfo.com.cn) |
IX. Penalty and rectification
¡õApplicable?Not applicable
X. Integrity of the company and its controlling shareholders and actual controllers
¡õApplicable?Not applicable
XI. Major related party transaction
1. Day-to-day related party transaction
?Applicable ¡õNot 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
WFPM | Associated enterprise | Procurement of goods and labor services | Procurement of goods and labor services | Pricing on the fair value in market | Market price | 1,694.79 | 0.33% | 4,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Procurement of goods and labor services | Procurement of goods and labor services | Pricing on the fair value in market | Market price | 17,450.80 | 3.41% | 45,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
WFEC | Associated enterprise of WFLD | Procurement of goods | Procurement of goods | Pricing on the fair value in market | Market price | 24,664.69 | 4.82% | 70,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
Robert Bosch Company | Second largest shareholder of the Company | Procurement of goods and labor services | Procurement of goods and labor services | Pricing on the fair value in market | Market price | 9,390.61 | 1.83% | 30,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
Changchun Xuyang | Associated enterprise | Procurement of goods | Procurement of goods | Pricing on the fair value in market | Market price | 34.25 | 0.01% | 150 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
WFPM | Associated enterprise | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 52.27 | 0.01% | 1,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 163,326.93 | 22.31% | 350,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
WFEC
WFEC | Associated enterprise of WFLD | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 15.86 | 0.00% | 700 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
Robert Bosch Company | Second largest shareholder of the Company | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 72,466.82 | 9.90% | 180,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
Changchun Xuyang | Associated enterprise | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 18.15 | 0.00% | 500 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
Hebei Machinery | Affiliated company | Sales of goods and services | Sales of goods and services | Pricing on the fair value in market | Market price | 7,760.74 | 1.06% | 20,000 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
RBCD | Associated enterprise, controlling subsidiary of Robert Bosch | Other | Technical service fee payable | Pricing on the fair value in market | Market price | 50 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | ||
RBCD | Associated enterprise. controlling subsidiary of Robert Bosch | Other | Payment of technical commission fee etc. | Pricing on the fair value in market | Market price | 31.20 | 150 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | |
RBCD | Associated enterprise. controlling subsidiary of Robert Bosch | Other | Purchasing fixed assets | Pricing on the fair value in market | Market price | 131.49 | 250 | N | According to the contract | Market price | 2022-04-19 | 2022-012 |
RobertBoschCompany
Robert Bosch Company | Second largest shareholder of the Company | Other | Payment of technical commission fee etc. | Pricing on the fair value in market | Market price | 13.05 | 100 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | |
Robert Bosch Company | Second largest shareholder of the Company | Other | Purchasing fixed assets | Pricing on the fair value in market | Market price | 5.47 | 2,800 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | |
WFEC | Associated enterprise of WFLD | Other | Technical service fee payable etc. | Pricing on the fair value in market | Market price | 50 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | ||
WFEC | Associated enterprise of WFLD | Other | Provision of technical services, etc. | Pricing on the fair value in market | Market price | 150 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | ||
WFEC | Associated enterprise of WFLD | Other | Lease receivable | Pricing on the fair value in market | Market price | 119.04 | 300 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | |
WFEC | Associated enterprise of WFLD | Other | Energy payable- utilities | Pricing on the fair value in market | Market price | 61.45 | 200 | N | According to the contract | Market price | 2022-04-19 | 2022-012 | |
Total | -- | -- | 297,237.61 | -- | 705,400 | -- | -- | -- | -- | -- | |||
Detail of sales return with major amount involved | Not applicable | ||||||||||||
Report the actual implementation of the day-to-day related transactions which were projected about their total amount by types during the reporting period (if applicable) | Being deliberated and approved by AGM of 2021, total day-to-day related party transaction for year of 2022 predicted as 7,054 million Yuan, actually2972.3761 million Yuan occurred in the Period, the related transaction classified according to types are as: 1. it estimated that procurement of goods and labor service from related party in 2022 will up to 1491.5 million Yuan, while 532.3514 million Yuan occurred actually in the Period; 2. it estimated that sales of goods and labor service to related party in 2022 will up to 5,522 million Yuan, actually 2436.4077 million Yuan occurred during the reporting period; 3. it estimated that other related transactions with related party for year of 2022 will up to 40.5 million Yuan while 3.617 million Yuan actually occurred. | ||||||||||||
Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
2. Related party transactions of assets acquisition and sold
¡õApplicable?Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
¡õApplicable?Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
¡õApplicable?Not applicable
The Company had no contact of related party credit and debt in the reporting period.
5.Transaction with related financial companies
¡õApplicable?Not applicable
There are no deposits, loans, credits or other financial business occurred between the Company and the related finance companies orrelated parties
6.Transaction between the financial companies that controlled by the Company and related parties
¡õApplicable?Not applicable
There are no deposits, loans, credits or other financial business occurred between the financial companies that controlled by theCompany and related parties
7. Other material related party transactions
?Applicable ¡õNot applicableOn January 7, 2022, the Company held the 6
th session of 10
th
BOD to deliberated and approved the Proposal on Establishment of aJoint Venture Company for Hydrogen Fuel Cell Parts and Related Transactions. The joint venture completed the industrial &commercial registration procedures on June 30, 2022, and obtained the Business License issued by Market Supervision Administrationof Wuxi National High-tech Industrial Development Zone (Xinwu District of Wuxi).On February 7, 2022, the Company held the 7
th session of 10
th
BOD to deliberated and approved the Proposal on Acquisition of Equityand Related Transactions. At present, the acquisition is progressing in an orderly manner as planned.On May 5, 2022, the Company held the 10
th session of 10
thBOD to deliberated and approved the Proposal to Increase Capital in aParticipating Company and Related Transaction. The participating company Xichan Weixin completed the industrial & commercialregistration procedures on June 29, 2022, and obtained the new Business License.Inquiries of related website with interim report disclosed with material related transaction concerned
Announcement
Announcement | Disclosure date | Website for disclosure |
Notice on Establishment of a Joint Venture Company for Hydrogen Fuel Cell Parts and Related Transactions | 2022-01-11 | Juchao Website(http://www.cninfo.com.cn) |
Notice on Acquisition of Equity and Related Transactions | 2022-02-09 | Juchao Website(http://www.cninfo.com.cn) |
Notice on Increasing Capital in a Participating Company and Related Transaction | 2022-05-07 | Juchao Website(http://www.cninfo.com.cn) |
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
¡õApplicable?Not applicable
No trusteeship occurred during the reporting period
(2) Contract
¡õApplicable?Not applicable
No contract occurred during the reporting period
(3) Leasing
¡õApplicable?Not applicable
No leasing occurred during the reporting period
2. Material guarantees
¡õApplicable?Not applicable
No material guarantees occurred during the reporting period
3.Trust financing
?Applicable ¡õNot applicable
Unit: 10¡¯000 yuan
Type
Type | Capital sources | Amount occurred | Outstanding balance | Amount overdue for collection | Impairment for the overdue financial management |
Bank Wealth Management | Own funds | 82,908 | 34,681 | 0 | 0 |
Brokerage financial products | Own funds | 101,612 | 64,500 | 0 | 0 |
Trust financial products | Own funds | 349,329 | 229,250 | 0 | 0 |
Other types | Own funds | 163,796 | 139,570 | 0 | 0 |
Total | 697,645 | 468,001 |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed?Applicable ¡õNot applicable
Unit: 10¡¯000 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 in the Year (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 | Bank | Non-guaranteed floating income | 370,060 | Own funds | 2022-01-05 | 2022-09-30 | Bank financial products | Reference annual rate of return by the contract | 2.50%-3.05% | 95.99 | 672.15 | Collected according to the contract | Y | Y | April 19, 2022 (Announcement No. 2022-013) | |
Brokerage | Securities | Non-guaranteed floating income | 46,000 | Own funds | 2022-01-07 | 2024-04-25 | Collective asset management plan | Reference annual rate of return by the contract | 4.70%-15.73% | 5,971.22 | 2,273.81 | Collected according to the contract | Y | Y | ||
Trust | Trust | Non-guaranteed floating income | 23,000 | Own funds | 2022-01-27 | 2024-03-18 | Collection trust plan | Reference annual rate of return by the contract | 6.30%-7.1% | 3,127.55 | 7,172.48 | Collected according to the contract | Y | Y | ||
Other (Funds, etc.) | Other professional financial institutions | Non-guaranteed floating income | 5,100 | Own funds | 2022-02-24 | 2022-08-24 | Private Equity Products, etc. | Reference annual rate of return by the contract | 2.00%-10% | 247.99 | 341.47 | Collected according to the contract | Y | Y | ||
Total | 444,160 | -- | -- | -- | -- | -- | -- | 9,442.75 | 10,459.91 | -- | -- | -- | -- |
Entrust financial expected to be unable to recover the principal or impairment might be occurred
¡õApplicable?Not applicable
4. Other significant contract
¡õApplicable?Not applicable
The company had no other significant contract in the reporting period.XIII. Explanation on other material matters
¡õApplicable?Not applicable
There are no explanation on other material matters in the period
XIV. Material matters of subsidiary of the Company
¡õApplicable?Not applicable
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 19,289,336 | 1.91% | 19,289,336 | 1.91% | |||||
1. State-owned shares | |||||||||
2. State-owned legal person¡¯s shares | |||||||||
3. Other domestic shares | 19,289,336 | 1.91% | 19,289,336 | 1.91% | |||||
Including: Domestic legal person¡¯s shares | |||||||||
Domestic natural person¡¯s shares | 19,289,336 | 1.91% | 19,289,336 | 1.91% | |||||
4. Foreign shares | |||||||||
Including: Foreign legal person¡¯s shares | |||||||||
Foreign natural person¡¯s shares | |||||||||
II. Unrestricted shares | 989,370,234 | 98.09% | 989,370,234 | 98.09% | |||||
1. RMB ordinary shares | 816,990,234 | 81.00% | 816,990,234 | 81.00% | |||||
2. Domestically listed foreign shares | 172,380,000 | 17.09% | 172,380,000 | 17.09% | |||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Total shares | 1,008,659,570 | 100.00% | 1,008,659,570 | 100.00% |
Reasons for share changed
¡õApplicable?Not applicable
Approval of share changed
¡õApplicable?Not applicable
Ownership transfer of share changed
¡õApplicable?Not applicable
Implementation progress of shares repurchase?Applicable ¡õNot applicableOn April 15, 2022, the Company held 8
th session of 10
thBOD to deliberated and approved the Proposal on Repurchase Plan of SomeA-Share of the Company.On May 10, 2022, the Company implemented the share repurchase (A-Share) initially by means of centralized competitive trading. Asof June 30, 2022, total of 4,982,800 shares (A-Share) were repurchased by means of centralized competitive bidding trading througha special securities account for repurchase, representing 0.49% of the current total share capital, of which, the highest trading pricewas 20.85 yuan/Share while the lowest trading price was 19.30 yuan/Share, total amount paid in aggregated as 100,001,057.07 yuan(transaction fees included).
Implementation progress of reducing holdings of shares buy-back by centralized bidding
¡õApplicable?Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
¡õApplicable?Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
¡õApplicable?Not applicable
2. Changes of lock-up stocks
¡õApplicable?Not applicable
II. Securities issuance and listing
¡õApplicable?Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total common stock shareholders at end ofthe reporting period
Total common stock shareholders at end of the reporting period | 68,720 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||||
Particulars about common shares held above 5% by shareholders or top ten common shareholders | |||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in reporting period (+,-) | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | ||
State of share | Amount | ||||||||
Wuxi Industry Development Group Co., Ltd. | State-owned corporate | 20.23% | 204,059,398 | 0 | 0 | 204,059,398 | |||
Robert Bosch Co., Ltd | Foreign corporate | 14.16% | 142,841,400 | 0 | 0 | 142,841,400 | |||
Hong Kong Securities Clearing Company | Foreign corporate | 2.20% | 22,213,969 | -2,495,452 | 0 | 22,213,969 | |||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign corporate | 1.40% | 14,122,915 | -1,321,800 | 0 | 14,122,915 | |||
NSSF - 413 | Other | 0.72% | 7,230,000 | 1,890,000 | 0 | 7,230,000 | |||
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | Foreign corporate | 0.70% | 7,043,386 | 0 | 0 | 7,043,386 | |||
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategy YZ Funds | Other | 0.55% | 5,500,106 | 5,500,106 | 0 | 5,500,106 | |||
Industrial and Commercial Bank of China Limited - Fullgoal CSI Bonus Enhanced Securities Investment Fund | Other | 0.39% | 3,943,482 | 236,900 | 0 | 3,943,482 | |||
Xie Zuogang | Domestic nature person | 0.38% | 3,812,086 | 0 | 0 | 3,812,086 | |||
Basic Pension Insurance Fund- 1003 | Other | 0.34% | 3,422,856 | -4,292,800 | 0 | 3,422,856 |
Strategy investor or general legal person becomingthe top 10 common shareholders by placing newshares (if applicable)
Strategy investor or general legal person becoming the top 10 common 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. and other shareholders, the first largest shareholder of the Company; and they do not belong to the persons acting in concert regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. | ||
Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | ||
Special note on the repurchase account among the top 10 shareholders (if applicable) (refer to Note 11) | As of June 30, 2022, the repurchase special securities account of Weifu High-Technology Group Co., Ltd has 5,039,077 shares of ordinary A-Share, representing 0.50% of the shareholding, hereby stated that in according withe relevant requirement, they do not included in the top 10 shareholders of the Company. | ||
Particular about top ten shareholders with un-lock up common stocks held | |||
Shareholders¡¯ name | Amount of common shares held without restriction at Period-end | Type of shares | |
Type | Amount | ||
Wuxi Industry Development Group Co., Ltd. | 204,059,398 | RMB common shares | 204,059,398 |
Robert Bosch Co., Ltd | 142,841,400 | RMB common shares | 115,260,600 |
Domestically listed foreign shares | 27,580,800 | ||
Hong Kong Securities Clearing Company | 22,213,969 | RMB common shares | 22,213,969 |
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | 14,122,915 | Domestically listed foreign shares | 14,122,915 |
NSSF - 413 | 7,230,000 | RMB common shares | 7,230,000 |
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND | 7,043,386 | Domestically listed foreign shares | 7,043,386 |
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategy YZ Funds | 5,500,106 | RMB common shares | 5,500,106 |
Industrial and Commercial Bank of China Limited - Fullgoal CSI Bonus Enhanced Securities Investment Fund | 3,943,482 | RMB common shares | 3,943,482 |
Xie Zuogang | 3,812,086 | Domestically listed foreign shares | 3,812,086 |
Basic Pension Insurance Fund- 1003 | 3,422,856 | RMB common shares | 3,422,856 |
Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first largest shareholder of the Company; and they do not belong to the persons acting in concert regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company. |
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
¡õYes ?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.
IV. Changes in shareholdings of directors, supervisors and senior executives
¡õApplicable?Not applicable
There were no changes in shareholdings of the directors, supervisors and senior executive during the reporting period , found more inAnnual Report 2021
V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
¡õApplicable?Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
¡õApplicable?Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
¡õApplicable?Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
¡õApplicable?Not applicable
Section X. Financial Report
I. Audit reportWhether the semi annual report is audited
¡õYes ?No
The company's semi annual financial report has not been auditedII. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co., Ltd.
June 30, 2022
Unit: RMB/CNY
Item
Item | June 30, 2022 | January 1, 2022 |
Current assets: | ||
Monetary funds | 2,357,955,196.57 | 1,896,063,265.69 |
Settlement provisions | ||
Capital lent | ||
Trading financial assets | 3,783,299,041.48 | 6,076,436,069.42 |
Derivative financial assets | ||
Note receivable | 990,397,272.62 | 1,116,550,186.21 |
Account receivable | 4,545,410,759.88 | 2,053,800,293.77 |
Receivable financing | 875,577,584.80 | 713,017,014.50 |
Accounts paid in advance | 3,128,509,070.58 | 178,059,249.99 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Other account receivable | 603,753,032.49 | 17,908,078.54 |
Including: Interest receivable | ||
Dividend receivable | 577,318,855.11 | |
Buying back the sale of financial assets | ||
Inventories | 2,167,754,348.61 | 3,445,396,375.09 |
Contractual assets | ||
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 52,225,842.73 | 220,320,922.50 |
Total current assets | 18,504,882,149.76 | 15,717,551,455.71 |
Non-current assets: | ||
Loans and payments on behalf | ||
Debt investment |
Other debt investment
Other debt investment | ||
Long-term account receivable | ||
Long-term equity investment | 5,582,235,398.43 | 5,717,944,788.12 |
Investment in other equity instrument | 677,790,690.00 | 285,048,000.00 |
Other non-current financial assets | 1,804,481,411.00 | 1,690,795,178.00 |
Investment real estate | 18,653,199.32 | 19,387,746.56 |
Fixed assets | 2,954,329,704.27 | 2,932,210,452.51 |
Construction in progress | 500,684,157.53 | 387,429,933.08 |
Productive biological asset | ||
Oil and gas asset | ||
Right-of-use assets | 28,757,850.60 | 23,148,405.58 |
Intangible assets | 429,178,519.56 | 440,593,119.82 |
Expense on Research and Development | ||
Goodwill | 224,425,945.78 | 231,255,015.75 |
Long-term expenses to be apportioned | 11,947,263.62 | 15,304,783.57 |
Deferred income tax asset | 247,248,306.68 | 242,248,194.57 |
Other non-current asset | 417,664,761.50 | 267,941,354.57 |
Total non-current asset | 12,897,397,208.29 | 12,253,306,972.13 |
Total assets | 31,402,279,358.05 | 27,970,858,427.84 |
Current liabilities: | ||
Short-term loans | 4,187,682,800.94 | 1,437,958,206.55 |
Loan from central bank | ||
Capital borrowed | ||
Trading financial liability | ||
Derivative financial liability | ||
Note payable | 1,603,408,581.52 | 1,760,032,216.30 |
Account payable | 4,244,994,572.77 | 3,206,653,702.59 |
Accounts received in advance | 6,950,948.17 | 2,854,518.96 |
Contractual liability | 93,104,665.28 | 136,427,636.39 |
Selling financial asset of repurchase | ||
Absorbing deposit and interbank deposit | ||
Security trading of agency | ||
Security sales of agency | ||
Wage payable | 244,436,555.93 | 339,888,502.70 |
Taxes payable | 110,831,058.87 | 40,105,648.88 |
Other account payable | 468,263,626.36 | 359,905,317.46 |
Including: Interest payable | 5,621.94 | 6,184.14 |
Dividend payable | 165,975,264.00 | 25,671,100.00 |
Commission charge and commission payable | ||
Reinsurance payable | ||
Liability held for sale | ||
Non-current liabilities due within one year | 31,696,560.71 | 34,088,773.68 |
Other current liabilities | 169,153,621.43 | 212,969,271.55 |
Total current liabilities | 11,160,522,991.98 | 7,530,883,795.06 |
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term loans | 200,000,000.00 | |
Bonds payable |
Including: Preferred stock
Including: Preferred stock | ||
Perpetual capital securities | ||
Lease liability | 21,504,518.33 | 15,795,469.25 |
Long-term account payable | 32,015,082.11 | 32,015,082.11 |
Long-term wages payable | 108,311,923.19 | 108,311,923.19 |
Accrual liability | ||
Deferred income | 280,016,332.08 | 298,052,867.56 |
Deferred income tax liabilities | 20,805,712.81 | 23,097,535.20 |
Other non-current liabilities | ||
Total non-current liabilities | 662,653,568.52 | 477,272,877.31 |
Total liabilities | 11,823,176,560.50 | 8,008,156,672.37 |
Owner¡¯s equity: | ||
Share capital | 1,008,659,570.00 | 1,008,659,570.00 |
Other equity instrument | ||
Including: Preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 3,406,077,313.83 | 3,371,344,172.82 |
Less: Inventory shares | 339,452,454.81 | 270,249,797.74 |
Other comprehensive income | -49,425,996.76 | -36,746,344.60 |
Reasonable reserve | 1,715,465.25 | 712,215.31 |
Surplus public reserve | 510,100,496.00 | 510,100,496.00 |
Provision of general risk | ||
Retained profit | 14,438,490,420.01 | 14,814,787,377.86 |
Total owner¡¯ s equity attributable to parent company | 18,976,164,813.52 | 19,398,607,689.65 |
Minority interests | 602,937,984.03 | 564,094,065.82 |
Total owner¡¯ s equity | 19,579,102,797.55 | 19,962,701,755.47 |
Total liabilities and owner¡¯ s equity | 31,402,279,358.05 | 27,970,858,427.84 |
Legal Representative: Wang XiaodongPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
Unit: RMB/CNY
Item | June 30, 2022 | January 1, 2022 |
Current assets: | ||
Monetary funds | 1,161,936,356.09 | 1,002,808,546.46 |
Trading financial assets | 3,438,370,002.19 | 5,493,703,374.82 |
Derivative financial assets | ||
Note receivable | 216,245,787.47 | 303,726,372.69 |
Account receivable | 925,360,503.38 | 536,957,890.22 |
Receivable financing | ||
Accounts paid in advance | 95,671,538.79 | 93,419,268.82 |
Other account receivable | 3,837,362,710.21 | 204,125,517.63 |
Including: Interest receivable | 102,777.78 | 113,055.56 |
Dividend receivable | 560,425,376.21 | 26,718,900.00 |
Inventories | 612,225,270.17 | 1,076,094,722.15 |
Contractual assets
Contractual assets | ||
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | 7,467,232.94 | 149,352,872.77 |
Total current assets | 10,294,639,401.24 | 8,860,188,565.56 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term equity investments | 6,840,345,524.26 | 6,867,282,228.56 |
Investment in other equity instrument | 601,850,690.00 | 209,108,000.00 |
Other non-current financial assets | 1,804,481,411.00 | 1,690,795,178.00 |
Investment real estate | ||
Fixed assets | 1,794,069,819.22 | 1,786,089,596.76 |
Construction in progress | 311,929,452.27 | 239,183,999.25 |
Productive biological assets | ||
Oil and natural gas assets | ||
Right-of-use assets | 8,182,385.14 | 1,240,879.96 |
Intangible assets | 211,090,286.11 | 209,952,168.75 |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | 274,190.98 | 348,970.34 |
Deferred income tax assets | 90,660,050.91 | 85,012,991.24 |
Other non-current assets | 321,480,754.07 | 185,646,711.53 |
Total non-current assets | 11,984,364,563.96 | 11,274,660,724.39 |
Total assets | 22,279,003,965.20 | 20,134,849,289.95 |
Current liabilities | ||
Short-term borrowings | 2,566,129,633.33 | 272,578,883.63 |
Trading financial liability | ||
Derivative financial liability | ||
Notes payable | 445,310,209.74 | 569,405,391.94 |
Account payable | 876,228,070.03 | 1,012,390,712.80 |
Accounts received in advance | ||
Contract liability | 6,849,874.49 | 7,879,319.15 |
Wage payable | 158,053,645.19 | 220,719,432.58 |
Taxes payable | 19,993,113.26 | 12,427,327.61 |
Other accounts payable | 1,311,764,098.96 | 392,455,373.80 |
Including: Interest payable | 117,777.78 | |
Dividend payable | 165,975,264.00 | |
Liability held for sale | ||
Non-current liabilities due within one year | 462,484.41 | 462,484.41 |
Other current liabilities | 130,116,125.31 | 143,935,332.78 |
Total current liabilities | 5,514,907,254.72 | 2,632,254,258.70 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities |
Lease liability
Lease liability | 7,993,740.15 | 1,003,106.55 |
Long-term account payable | ||
Long term employee compensation payable | 103,482,333.50 | 103,482,333.50 |
Accrued liabilities | ||
Deferred income | 253,285,007.42 | 265,509,545.34 |
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 364,761,081.07 | 369,994,985.39 |
Total liabilities | 5,879,668,335.79 | 3,002,249,244.09 |
Owners¡¯ equity: | ||
Share capital | 1,008,659,570.00 | 1,008,659,570.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 3,522,974,136.55 | 3,487,154,855.59 |
Less: Inventory shares | 339,452,454.81 | 270,249,797.74 |
Other comprehensive income | ||
Special reserve | ||
Surplus reserve | 510,100,496.00 | 510,100,496.00 |
Retained profit | 11,697,053,881.67 | 12,396,934,922.01 |
Total owner¡¯s equity | 16,399,335,629.41 | 17,132,600,045.86 |
Total liabilities and owner¡¯s equity | 22,279,003,965.20 | 20,134,849,289.95 |
3. Consolidated Profit Statement
Unit: RMB/CNY
Item | 2022 semi-annual | 2021 semi-annual |
I. Total operating income | 7,321,835,360.98 | 9,037,691,756.24 |
Including: Operating income | 7,321,835,360.98 | 9,037,691,756.24 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 6,729,087,452.78 | 8,179,064,974.32 |
Including: Operating cost | 6,024,571,742.71 | 7,497,917,157.07 |
Interest expense | ||
Commission charge and commission expense | ||
Cash surrender value | ||
Net amount of expense of compensation | ||
Net amount of withdrawal of insurance contract reserve | ||
Bonus expense of guarantee slip | ||
Reinsurance expense | ||
Tax and extras | 28,877,421.78 | 38,209,494.32 |
Sales expense | 79,020,592.43 | 111,193,615.56 |
Administrative expense | 277,212,254.79 | 266,226,378.32 |
R&D expense | 289,631,376.50 | 249,583,255.99 |
Financial expense | 29,774,064.57 | 15,935,073.06 |
Including: Interest expenses | 34,275,262.65 | 14,244,003.27 |
Interest income | 13,927,929.36 | 16,673,615.70 |
Add: other income
Add: other income | 26,095,621.93 | 23,433,211.68 |
Investment income (Loss is listed with ¡°-¡±) | 928,792,343.97 | 1,105,771,532.34 |
Including: Investment income on affiliated company and joint venture | 823,400,731.10 | 962,736,510.68 |
The termination of income recognition for financial assets measured by amortized cost(Loss is listed with ¡°-¡±) | -680,357.44 | -609,970.51 |
Exchange income (Loss is listed with ¡°-¡±) | ||
Net exposure hedging income (Loss is listed with ¡°-¡±) | ||
Income from change of fair value (Loss is listed with ¡°-¡±) | -74,432,928.14 | -86,131,772.46 |
Loss of credit impairment (Loss is listed with ¡°-¡±) | 2,083,427.81 | 6,750,336.12 |
Losses of devaluation of asset (Loss is listed with ¡°-¡±) | -104,219,783.98 | -103,997,387.44 |
Income from assets disposal (Loss is listed with ¡°-¡±) | 1,890,279.95 | 2,926,586.82 |
III. Operating profit (Loss is listed with ¡°-¡±) | 1,372,956,869.74 | 1,807,379,288.98 |
Add: Non-operating income | 218,285.29 | 488,184.66 |
Less: Non-operating expense | 2,196,565.87 | 851,627.30 |
IV. Total profit (Loss is listed with ¡°-¡±) | 1,370,978,589.16 | 1,807,015,846.34 |
Less: Income tax expense | 100,553,787.21 | 117,972,661.22 |
V. Net profit (Net loss is listed with ¡°-¡±) | 1,270,424,801.95 | 1,689,043,185.12 |
(i) Classify by business continuity | ||
1.continuous operating net profit (net loss listed with ¡®-¡±) | 1,270,424,801.95 | 1,689,043,185.12 |
2.termination of net profit (net loss listed with ¡®-¡±) | ||
(ii) Classify by ownership | ||
1.Net profit attributable to owner¡¯s of parent company | 1,232,762,710.95 | 1,645,389,487.32 |
2.Minority shareholders¡¯ gains and losses | 37,662,091.00 | 43,653,697.80 |
VI. Net after-tax of other comprehensive income | -12,679,652.16 | -18,712,800.55 |
Net after-tax of other comprehensive income attributable to owners of parent company | -12,679,652.16 | -18,712,800.55 |
(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 | ||
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 | -12,679,652.16 | -18,712,800.55 |
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 | -12,679,652.16 | -18,712,800.55 |
7.Other | ||
Net after-tax of other comprehensive income attributable to minority shareholders | ||
VII. Total comprehensive income | 1,257,745,149.79 | 1,670,330,384.57 |
Total comprehensive income attributable to owners of parent Company | 1,220,083,058.79 | 1,626,676,686.77 |
Total comprehensive income attributable to minority shareholders | 37,662,091.00 | 43,653,697.80 |
VIII. Earnings per share:
VIII. Earnings per share: | ||
(i) Basic earnings per share | 1.25 | 1.66 |
(ii) Diluted earnings per share | 1.25 | 1.66 |
Legal Representative: Wang XiaodongPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
Unit: RMB/CNY
Item | 2022 semi-annual | 2021 semi-annual |
I. Operating income | 2,411,189,208.04 | 3,220,943,476.43 |
Less: Operating cost | 1,919,986,159.54 | 2,403,527,534.87 |
Taxes and surcharge | 13,501,778.32 | 21,834,137.85 |
Sales expenses | 14,392,542.42 | 17,546,893.57 |
Administration expenses | 144,366,869.06 | 135,426,334.91 |
R&D expenses | 115,694,064.37 | 87,747,468.92 |
Financial expenses | -8,310,144.29 | -7,223,028.80 |
Including: interest expenses | 18,380,946.47 | 3,350,273.60 |
Interest income | 31,657,392.66 | 13,656,977.09 |
Add: other income | 15,713,320.73 | 15,396,596.15 |
Investment income (Loss is listed with ¡°-¡±) | 835,209,662.03 | 1,028,633,777.97 |
Including: Investment income on affiliated Company and joint venture | 734,429,287.99 | 831,855,487.43 |
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 ¡°-¡±) | -74,417,034.85 | -86,218,789.02 |
Loss of credit impairment (Loss is listed with ¡°-¡±) | 477,241.11 | 780,808.33 |
Losses of devaluation of asset (Loss is listed with ¡°-¡±) | -45,999,971.02 | -10,358,756.04 |
Income on disposal of assets (Loss is listed with ¡°-¡±) | 146,113.46 | 723,623.73 |
II. Operating profit (Loss is listed with ¡°-¡±) | 942,687,270.08 | 1,511,041,396.23 |
Add: Non-operating income | 138,467.56 | 56,000.29 |
Less: Non-operating expense | 613,619.53 | 575,906.72 |
III. Total Profit (Loss is listed with ¡°-¡±) | 942,212,118.11 | 1,510,521,489.80 |
Less: Income tax | 33,033,489.65 | 76,926,523.99 |
IV. Net profit (Net loss is listed with ¡°-¡±) | 909,178,628.46 | 1,433,594,965.81 |
(i)continuous operating net profit (net loss listed with ¡®-¡±) | 909,178,628.46 | 1,433,594,965.81 |
(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 | ||
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
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 | 909,178,628.46 | 1,433,594,965.81 |
VII. Earnings per share: | ||
(i) Basic earnings per share | ||
(ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB/CNY
Item | 2022 semi-annual | 2021 semi-annual |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 8,608,596,903.67 | 7,104,973,474.71 |
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 | 232,035,625.20 | 22,377,551.77 |
Other cash received concerning operating activities | 22,438,681.72 | 23,837,717.02 |
Subtotal of cash inflow arising from operating activities | 8,863,071,210.59 | 7,151,188,743.50 |
Cash paid for purchasing commodities and receiving labor service | 10,123,953,273.86 | 5,800,001,521.45 |
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 | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 736,897,874.74 | 769,474,843.18 |
Taxes paid | 223,299,890.76 | 241,303,901.65 |
Other cash paid concerning operating activities | 272,902,216.12 | 260,216,868.05 |
Subtotal of cash outflow arising from operating activities | 11,357,053,255.48 | 7,070,997,134.33 |
Net cash flows arising from operating activities | -2,493,982,044.89 | 80,191,609.17 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 6,783,202,982.62 | 9,674,956,210.22 |
Cash received from investment income | 510,529,403.51 | 476,145,091.90 |
Net cash received from disposal of fixed, intangible and otherlong-term assets
Net cash received from disposal of fixed, intangible and other long-term assets | 7,007,242.74 | 7,301,988.55 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | 1,108,314.69 | |
Subtotal of cash inflow from investing activities | 7,300,739,628.87 | 10,159,511,605.36 |
Cash paid for purchasing fixed, intangible and other long-term assets | 622,264,336.12 | 312,048,305.49 |
Cash paid for investment | 5,121,895,293.87 | 8,896,332,579.38 |
Net increase of mortgaged loans | ||
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 5,744,159,629.99 | 9,208,380,884.87 |
Net cash flows arising from investing activities | 1,556,579,998.88 | 951,130,720.49 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Including: Cash received from absorbing minority shareholders¡¯ investment by subsidiaries | ||
Cash received from loans | 4,061,893,674.46 | 1,107,957,631.62 |
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 4,061,893,674.46 | 1,107,957,631.62 |
Cash paid for settling debts | 1,122,521,453.43 | 212,778,637.77 |
Cash paid for dividend and profit distributing or interest paying | 1,499,815,013.36 | 1,385,111,066.13 |
Including: Dividend and profit of minority shareholder paid by subsidiaries | 25,671,100.00 | 13,970,282.31 |
Other cash paid concerning financing activities | 100,866,543.83 | 6,919,876.01 |
Subtotal of cash outflow from financing activities | 2,723,203,010.62 | 1,604,809,579.91 |
Net cash flows arising from financing activities | 1,338,690,663.84 | -496,851,948.29 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -4,522,251.76 | -3,408,171.79 |
V. Net increase of cash and cash equivalents | 396,766,366.07 | 531,062,209.58 |
Add: Balance of cash and cash equivalents at the period -begin | 1,094,018,936.73 | 944,946,018.70 |
VI. Balance of cash and cash equivalents at the period -end | 1,490,785,302.80 | 1,476,008,228.28 |
6. Cash Flow Statement of Parent Company
Unit: RMB/CNY
Item | 2022 semi-annual | 2021 semi-annual |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 2,206,683,069.38 | 3,242,751,680.23 |
Write-back of tax received | 186,226,813.27 | |
Other cash received concerning operating activities | 13,662,628.42 | 12,609,442.48 |
Subtotal of cash inflow arising from operating activities | 2,406,572,511.07 | 3,255,361,122.71 |
Cash paid for purchasing commodities and receiving labor service | 1,469,241,728.46 | 1,994,221,184.67 |
Cash paid to/for staff and workers | 389,448,409.74 | 437,457,769.95 |
Taxes paid | 138,600,504.19 | 113,149,540.45 |
Other cash paid concerning operating activities | 94,078,994.56 | 73,953,894.64 |
Subtotal of cash outflow arising from operating activities | 2,091,369,636.95 | 2,618,782,389.71 |
Net cash flows arising from operating activities | 315,202,874.12 | 636,578,733.00 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 4,401,242,982.62 | 7,526,445,210.22 |
Cash received from investment income
Cash received from investment income | 515,008,090.22 | 467,905,359.02 |
Net cash received from disposal of fixed, intangible and other long-term assets | 2,092,031.77 | 4,642,596.78 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | 333,677,757.87 | 126,059,237.40 |
Subtotal of cash inflow from investing activities | 5,252,020,862.48 | 8,125,052,403.42 |
Cash paid for purchasing fixed, intangible and other long-term assets | 427,352,475.87 | 168,425,236.10 |
Cash paid for investment | 3,082,493,337.87 | 6,901,181,670.00 |
Net cash received from subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | 3,408,840,000.00 | 135,221,125.00 |
Subtotal of cash outflow from investing activities | 6,918,685,813.74 | 7,204,828,031.10 |
Net cash flows arising from investing activities | -1,666,664,951.26 | 920,224,372.32 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Cash received from loans | 2,618,386,800.00 | 276,862,000.00 |
Other cash received concerning financing activities | 783,729,243.68 | 30,000,000.00 |
Subtotal of cash inflow from financing activities | 3,402,116,043.68 | 306,862,000.00 |
Cash paid for settling debts | 326,483,000.00 | 102,000,000.00 |
Cash paid for dividend and profit distributing or interest paying | 1,459,828,775.80 | 1,361,089,903.10 |
Other cash paid concerning financing activities | 100,720,981.37 | 48,290.60 |
Subtotal of cash outflow from financing activities | 1,887,032,757.17 | 1,463,138,193.70 |
Net cash flows arising from financing activities | 1,515,083,286.51 | -1,156,276,193.70 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -3,140,478.44 | -1,128,178.25 |
V. Net increase of cash and cash equivalents | 160,480,730.93 | 399,398,733.37 |
Add: Balance of cash and cash equivalents at the period -begin | 488,417,498.83 | 651,188,544.53 |
VI. Balance of cash and cash equivalents at the period -end | 648,898,229.76 | 1,050,587,277.90 |
7. Statement of Changes in Owners¡¯ Equity (Consolidated)
Current Period
Unit: RMB/CNY
Item
Item | 2022 semi-annual | ||||||||||||||
Owners¡¯ equity attributable to the parent Company | Minority interests | Total owners¡¯ equity | |||||||||||||
Share capital | 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 | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other |
II. Balanceat thebeginning ofthis year
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 ¡°-¡±) | 34,733,141.01 | 69,202,657.07 | -12,679,652.16 | 1,003,249.94 | -376,296,957.85 | -422,442,876.13 | 38,843,918.21 | -383,598,957.92 | |||||||
(i) Total comprehensive income | -12,679,652.16 | 1,232,762,710.95 | 1,220,083,058.79 | 37,662,091.00 | 1,257,745,149.79 | ||||||||||
(ii) Owners¡¯ devoted and decreased capital | 34,733,141.01 | 69,202,657.07 | -34,469,516.06 | 1,086,139.92 | -33,383,376.14 | ||||||||||
1.Common shares invested by shareholders | |||||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | 34,733,141.01 | 34,733,141.01 | 1,086,139.92 | 35,819,280.93 | |||||||||||
4. Other | 69,202,657.07 | -69,202,657.07 | -69,202,657.07 |
(III) Profitdistribution
(III) Profit distribution | -1,609,059,668.80 | -1,609,059,668.80 | -1,609,059,668.80 | ||||||||||||
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 | -1,609,059,668.80 | ||||||||||||
4. Other | |||||||||||||||
(IV) Carrying forward internal owners¡¯ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share |
capital)
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 | 1,003,249.94 | 1,003,249.94 | 95,687.29 | 1,098,937.23 | |||||||||||
1. Withdrawal in the report period | 13,239,465.25 | 13,239,465.25 | 1,346,071.86 | 14,585,537.11 | |||||||||||
2. Usage in the report period | 12,236,215.31 | 12,236,215.31 | 1,250,384.57 | 13,486,599.88 |
(VI)Others
(VI)Others | |||||||||||||||
IV. Balance at the end of the report period | 1,008,659,570.00 | 3,406,077,313.83 | 339,452,454.81 | -49,425,996.76 | 1,715,465.25 | 510,100,496.00 | 14,438,490,420.01 | 18,976,164,813.52 | 602,937,984.03 | 19,579,102,797.55 |
Last Period
Unit: RMB/CNY
Item | 2021 semi-annual | ||||||||||||||
Owners¡¯ equity attributable to the parent Company | Minority interests | Total owners¡¯ equity | |||||||||||||
Share capital | 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 | 1,008,950,570.00 | 3,294,242,368.28 | 303,627,977.74 | 13,916,619.47 | 2,333,490.03 | 510,100,496.00 | 13,756,102,424.62 | 18,282,017,990.66 | 512,447,908.36 | 18,794,465,899.02 | |||||
Add: Changes of accounting policy |
Errorcorrectionof the lastperiod
Error correction of the last period | |||||||||||||||
Enterprise combine under the same control | |||||||||||||||
Other | |||||||||||||||
II. Balance at the beginning of this year | 1,008,950,570.00 | 3,294,242,368.28 | 303,627,977.74 | 13,916,619.47 | 2,333,490.03 | 510,100,496.00 | 13,756,102,424.62 | 18,282,017,990.66 | 512,447,908.36 | 18,794,465,899.02 | |||||
III. Increase/ Decrease in this year (Decrease is listed with ¡°-¡±) | 37,351,066.35 | -18,712,800.55 | 194,126.99 | 134,284,380.68 | 153,116,773.47 | 30,900,981.21 | 184,017,754.68 | ||||||||
(i) Total comprehensive income | -18,712,800.55 | 1,645,389,487.32 | 1,626,676,686.77 | 43,653,697.80 | 1,670,330,384.57 | ||||||||||
(ii) Owners¡¯ devoted and decreased capital | 37,351,066.35 | 37,351,066.35 | 1,174,655.42 | 38,525,721.77 |
1.Commo
n sharesinvestedbyshareholders
1.Common shares invested by shareholders | |||||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount reckoned into owners equity with share-based payment | 37,351,066.35 | 37,351,066.35 | 1,174,655.42 | 38,525,721.77 | |||||||||||
4. Other | |||||||||||||||
(III) Profit distribution | -1,513,341,439.50 | -1,513,341,439.50 | -13,970,282.31 | -1,527,311,721.81 | |||||||||||
1. Withdrawal of surplus reserves | |||||||||||||||
2. Withdrawal of general risk provisions |
3.Distribution forowners (orshareholders)
3. Distribution for owners (or shareholders) | -1,513,341,439.50 | -1,513,341,439.50 | -13,970,282.31 | -1,527,311,721.81 | |||||||||||
4. Other | |||||||||||||||
(IV) Carrying forward internal owners¡¯ equity | |||||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||||
4£®Carry-over retained earnings from the defined benefit plans |
5£®Carry-overretainedearningsfrom othercomprehensiveincome
5£®Carry-over retained earnings from other comprehensive income | |||||||||||||||
6. Other | |||||||||||||||
(V) Reasonable reserve | 194,126.99 | 194,126.99 | 42,910.30 | 237,037.29 | |||||||||||
1. Withdrawal in the report period | 12,481,928.66 | 12,481,928.66 | 1,203,727.42 | 13,685,656.08 | |||||||||||
2. Usage in the report period | 12,287,801.67 | 12,287,801.67 | 1,160,817.12 | 13,448,618.79 | |||||||||||
(VI)Others | 2,236,332.86 | 2,236,332.86 | 2,236,332.86 | ||||||||||||
IV. Balance at the end of the report period | 1,008,950,570.00 | 3,331,593,434.63 | 303,627,977.74 | -4,796,181.08 | 2,527,617.02 | 510,100,496.00 | 13,890,386,805.30 | 18,435,134,764.13 | 543,348,889.57 | 18,978,483,653.70 |
8. Statement of Changes in Owners¡¯ Equity (Parent Company)
Current Period
Unit: RMB/CNY
Item
Item | 2022 semi-annual | |||||||||||
Share capital | Other equity instrument | Capital public 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 | 0.00 | 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 | 0.00 | 510,100,496.00 | 12,396,934,922.01 | 17,132,600,045.86 | |||||
III. Increase/ Decrease in this year (Decrease is listed with ¡°-¡±) | 35,819,280.96 | 69,202,657.07 | -699,881,040.34 | -733,264,416.45 | ||||||||
(i) Total comprehensive income | 909,178,628.46 | 909,178,628.46 | ||||||||||
(ii) Owners¡¯ devoted and decreased capital | 35,819,280.96 | 69,202,657.07 | -33,383,376.11 | |||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments |
3. Amount
reckoned intoowners equitywith share-basedpayment
3. Amount reckoned into owners equity with share-based payment | 35,819,280.96 | 35,819,280.96 | ||||||||||
4. Other | 69,202,657.07 | -69,202,657.07 | ||||||||||
(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 | 3,366,170.40 | 3,366,170.40 |
2. Usage in the
report period
2. Usage in the report period | 3,366,170.40 | 3,366,170.40 | ||||||||||
(VI)Others | ||||||||||||
IV. Balance at the end of the report period | 1,008,659,570.00 | 3,522,974,136.55 | 339,452,454.81 | 0.00 | 510,100,496.00 | 11,697,053,881.67 | 16,399,335,629.41 |
Last period
Unit: RMB/CNY
Item | 2021 semi-annual | |||||||||||
Share capital | Other equity instrument | Capital public 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 | 1,008,950,570.00 | 3,407,732,016.61 | 303,627,977.74 | 0.00 | 510,100,496.00 | 11,698,982,965.62 | 16,322,138,070.49 | |||||
Add: Changes of accounting policy | ||||||||||||
Error correction of the last period | ||||||||||||
Other | ||||||||||||
II. Balance at the beginning of this year | 1,008,950,570.00 | 3,407,732,016.61 | 303,627,977.74 | 0.00 | 510,100,496.00 | 11,698,982,965.62 | 16,322,138,070.49 | |||||
III. Increase/ Decrease in this year (Decrease is listed with ¡°-¡±) | 38,525,721.77 | -77,510,140.83 | -38,984,419.06 | |||||||||
(i) Total comprehensive income | 1,433,594,965.81 | 1,433,594,965.81 |
(ii) Owners¡¯devoted anddecreasedcapital
(ii) Owners¡¯ devoted and decreased capital | 38,525,721.77 | 38,525,721.77 | ||||||||||
1.Common shares invested by shareholders | ||||||||||||
2. Capital invested by holders of other equity instruments | ||||||||||||
3. Amount reckoned into owners equity with share-based payment | 38,525,721.77 | 38,525,721.77 | ||||||||||
4. Other | ||||||||||||
(III) Profit distribution | -1,513,341,439.50 | -1,513,341,439.50 | ||||||||||
1. Withdrawal of surplus reserves | ||||||||||||
2. Distribution for owners (or shareholders) | -1,513,341,439.50 | -1,513,341,439.50 | ||||||||||
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 withsurplus reserve
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 | 3,218,208.90 | 3,218,208.90 | ||||||||||
2. Usage in the report period | 3,218,208.90 | 3,218,208.90 | ||||||||||
(VI)Others | 2,236,332.86 | 2,236,332.86 | ||||||||||
IV. Balance at the end of the report period | 1,008,950,570.00 | 3,446,257,738.38 | 303,627,977.74 | 0.00 | 510,100,496.00 | 11,621,472,824.79 | 16,283,153,651.43 |
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 companyof limited liability with funds raised from targeted sources, and registered at Wuxi Administration for Industry &Commerce in October 1992. The original share capital of the Company totaled 115.4355 million yuan, includingstate-owned share capital amounting to 92.4355 million yuan, public corporate share capital amounting to 8 millionyuan 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 WeifuGroup Co., Ltd (hereinafter referred to as ¡°Weifu Group¡±).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Companyissued 68 million special ordinary shares (B-share) with value of 1.00 yuan for each, and the total value of thoseshares amounted to 68 million yuan. After the issuance, the Company¡¯s total share capital increased to 183.4355million yuan.By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) atShenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of theCompany amounted to 303.4355 million yuan.In the middle of 1999, deliberated and approved by the Board and Shareholders¡¯ General Meeting, the Companyimplemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the Companyamounted to 394.46615 million yuan, of which state-owned shares amounted to 120.16615 million yuan, publiccorporate shares 10.4 million yuan, foreign-funded shares (B-share) 88.40 million yuan, RMB ordinary shares (A-share) 156 million yuan and inner employee shares 19.5 million yuan.In the year of 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million sharesafter the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of 10yuan for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotmentincreased to 436.36615 million yuan, of which state-owned corporate shares amounted to 121.56615 million yuan,public corporate shares 10.4 million yuan, foreign-funded shares (B-share) 88.4 million yuan and RMB ordinaryshares (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 and approved by 2004 Shareholders¡¯ General Meeting , the Company distributed 3 shares for each10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.According to the Share Merger Reform Scheme of the Company that passed by related shareholders¡¯ meeting ofShare Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in ShareMerger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision & AdministrationCommission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged pricing withgranting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000 shares), so asto realize the originally non-circulating shares can be traded on market when satisfied certain conditions, the schemehas been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 sharesbased on the number of circulating A share as prior to Share Merger Reform, according to the aforesaid ShareMerger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of dispatch ofconsideration shares, Weifu Group then held 100,021,999 shares of the Company, representing 17.63% of the totalshare capital of the Company.Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by WuxiIndustry Development Group Co., Ltd. issued by the State-owned Assets Supervision and AdministrationCommission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to asWuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets andcredits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry Groupbecame the first largest shareholder of the Company since then.In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approvedby [2012] No. 109 document of China Securities Regulatory Commission, in February 2012, the Company issuedRMB ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investorprivately, Robert Bosch Co., Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company),face value was ONE yuan per share, added registered capital of 112,858,000 yuan, and the registered capital afterchange was 680,133,995 yuan. Wuxi Industry Group is the first majority shareholder of the Company, and RobertBosch Company is the second majority shareholder of the Company.In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, andalso passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in totalare distributed. Total share capital of the Company amounting 1,020,200,992 yuan up to 31 December 2013.Deliberated and approved by the company¡¯s first extraordinary general meeting in 2015, the company hasrepurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has finished thecancellation procedures for above repurchase shares in China Securities Depository and Clearing CorporationLimited Shenzhen Branch on September 16, 2015; after the cancellation of repurchase shares, the company¡¯s paid-up capital (share capital) becomes 1,008,950,570 yuan after the change.After deliberation and approved by the 5
th session of 10
thBOD for year of 2021, the 291,000 restricted shares arebuy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. Thecancellation of the above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December20, 2021; the paid-in capital (equity) of the Company comes to 1,008,659,570.00 yuan after changed.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road, Xinwu District, WuxiUnified social credit code: 91320200250456967NThe Company sets up Shareholders¡¯ General Meeting, the Board of Directors (BOD) and the Board of Supervisors(BOS)The Company sets up Administration Department, Technology Centre, organization & personnel department, Officeof the Board, compliance department, IT department, Strategy & new business Department, market developmentdepartment, Party-massesDepartment, Finance Department, Purchase Department,Manufacturing QualityDepartment, MS (Mechanical System) division, AC(Automotive Components) divisionand DS (Diesel System )
division, etc. and subsidiaries such as WUXI WEIFU LIDA CATALYTIC CONVERTER CO., LTD, NANJINGWFJN CO., LTD, IRD Fuel Cells A/S and Borit NV, 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 of engine fuel oil system products, fuel oil system testers and equipment, manufacturing of autoelectronic parts, automotive electrical components, non-standard equipment, non-standard knife tool and exhaustafter-treatment system; sales of the general machinery, hardware & electrical equipment, chemical products & rawmaterials (excluding hazardous chemicals), automotive components and vehicles (excluding nine-seat passengercar); internal combustion engine maintenance; leasing of the own houses; import and export business in respect ofdiversified commodities and technologies (other than those commodities and technologies limited or forbidden bythe State for import and export) by self-operation and works as agent for such business. Research and testdevelopment of engineering and technical; R&D of the energy recovery system; manufacture of auto componentsand accessories; general equipment manufacturing (excluding special equipment manufacturing), (any projects thatneeds to be approved by laws can only be carried out after getting approval by relevant authorities) General items:
engage in investment activities with self-owned funds (except for items subject 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, purifiers and fuel cell components etc.
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company were approved by the Board of Directors for reporting dated August 23, 2022.
5. Scope of consolidate financial statement
Name of subsidiary
Name of subsidiary | Short name of subsidiary | Shareholding ratio (%) | Proportion of votes (%) | (in 10 thousand yuan) | Business scope | Statement consolidate (Y/N) | |
Directly | Indirectly | ||||||
NANJING WEIFU JINNING CO., LTD. | WFJN | 80.00 | -- | 80.00 | 34,628.70 | Internal-combustion engine accessories | Y |
WUXI WEIFU LIDA CATALYTIC CONVERTER CO., LTD. | WFLD | 94.81 | -- | 94.81 | 50,259.63 | Purifier and muffler | Y |
WUXI WEIFU MASHAN FUEL INJECTION EQUIPMENT CO., LTD. | WFMA | 100.00 | -- | 100.00 | 16,500 | Internal-combustion engine accessories | Y |
WUXI WEIFU CHANG?AN CO.,LTD. | WFCA | 100.00 | -- | 100.00 | 21,000 | Internal-combustion engine accessories | Y |
WUXI WEIFU INTERNATIONAL TRADE CO.,LTD. | WFTR | 100.00 | -- | 100.00 | 3,000 | Trade | Y |
WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.,LTD. | WFSC | 66.00 | -- | 66.00 | 7,600 | Internal-combustion engine accessories | Y |
NINGBO WEIFU TIANLI TURBOCHARGING TECHNOLOGY CO.,LTD. | WFTT | 98.83 | 1.17 | 100.00 | 11,136 | Internal-combustion engine accessories | Y |
WUXI WEIFU AUTOCAM PRECISION MACHINERY CO.,LTD. | WFAM | 51.00 | -- | 51.00 | USD2,110 | Automotive components | Y |
WUXI WEIFU LIDA CATALYTIC CONVERTER (WUHAN) CO., LTD. | (WUHAN) | -- | 60.00 | 60.00 | 1,000 | Purifier and muffler | Y |
Weifu Lida (Chongqing) Automotive components Co., Ltd. | (Chongqing) | -- | 100.00 | 100.00 | 5,000 | Purifier and muffler | Y |
Nanchang Weifu Lida Automotive Components Co., Ltd. | (Nanchang) | -- | 100.00 | 100.00 | 5,000 | Purifier and muffler | Y |
WUXI WEIFU AUTOSMART SEATING SYSTEM CO., LTD. | WFAS | -- | 66.00 | 66.00 | 10,000 | Smart car device | Y |
WUXI WEIFU E-DRIVE TECHNOLOGIES CO.,LTD.
WUXI WEIFU E-DRIVE TECHNOLOGIES CO., LTD. | WFDT | 80.00 | -- | 80.00 | USD2,000 | Wheel motor | Y |
Weifu Holding ApS | SPV | 100.00 | -- | 100.00 | DKK2,425 | Investment | Y |
IRD Fuel Cells A/S | IRD | -- | 100.00 | 100.00 | DKK10,108 | Fuel cell components | Y |
IRD FUEL CELLS LLC | IRD America | -- | 100.00 | 100.00 | USD651.91 | Fuel cell components | Y |
Borit NV | Borit | -- | 100.00 | 100.00 | EUR1180.96 | Fuel cell components | Y |
Borit Inc. | Borit America | -- | 100.00 | 100.00 | USD0.1 | Fuel cell components | Y |
Wuxi Weifu Qinglong Power Technology Co., Ltd. | WFFC | 45.00 | 30.00 | 75.00 | 50,000 | Fuel cell components | Y |
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises ¨CBasic Normsissued by Ministry of Finance, the specific 42 accounting rules revised and issued dated 15 February 2006 and later,the Application Instruments of Accounting Standards and interpretation on Accounting standards and other relevantregulations (together as ¡°Accounting Standards for Business Enterprise¡±), as well as the Compilation Rules forInformation Disclosure by Companies Offering Securities to the Public No.15 ¨C General Provision of FinancialReport (Amended in 2014) issued by CSRC in respect of the actual transactions and proceedings, on a basis ofongoing operation.In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is onaccrual basis. Except for certain financial instruments, the financial statement measured on historical cost. Assetshave impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information, and there are no obvious factors that impactsustainable operation ability of the Company within 12 months since end of the reporting period.V. Major Accounting Policies and EstimationSpecific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil systemproducts, automotive components, mufflers, purifiers and fuel cell components etc., in line with the actualoperational characteristics and relevant accounting standards, many specific accounting policies and estimation havebeen formulated for the transactions and events with revenue recognized concerned. As for the explanation on majoraccounting judgment and estimation, found more in Note V- 36. Other major 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 forBusiness Enterprises, which truly and completely reflected the financial information of the Company during thereporting period such as financial position, operation achievements and cash flow.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cashequivalent achieved. The Company¡¯s normal business cycle was one-year (12 months).
4. Recording currency
The Company¡¯s reporting currency is the RMB yuan.
5. Accounting Treatment Method for Business Combinations under the same/different controlBusiness combination is the transaction or events that two or two above independent enterprises combined as areporting entity. Business combination including enterprise combined under the same control and businesscombined 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 sameultimate controller or under the same controller, the control is not temporary. The assets and liability acquired bycombining party are measured by book value of the combined party on combination date. Balance of net asset¡¯sbook value acquired by combining party and combine consideration paid (or total book value of the shares issued),shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not enough for deducted,adjusted for retained earnings. Vary directly expenses occurred for enterprise combination, the combining partyshall reckoned into current gains/losses while occurring. Combination day is the date when combining partyobtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of thecombining entities are not ultimately controlled by the same party or parties both before and after thecombination.As a purchaser, fair value of the assets (equity of purchaser held before the date of purchasing included)for purchasing controlling right from the purchaser, the liability occurred or undertake on purchasing date less thefair value of identifiable net assets of the purchaser obtained in combination, recognized as goodwill if the resultsis positive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of theidentifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combinationcosts.After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, theacquirer shall recognize the difference as the profit or loss in the current period.Other directly expenses cost forcombination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its bookvalues, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency of thepurchaser obtained by the Company recognized by fair value, that required identification conditions; Acquisitiondate refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated statementin line with relevant information. The scope of consolidation of consolidated financial statements is ascertained onthe basis of effective control. Once certain elements involved in the above definition of control change due to
changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the investedparty¡¯s relevant activities and the ability to affect such return by use of the aforesaid right over the investedparty.Relevant activates refers to activates have major influence on return of the invested party¡¯s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are de-consolidated from the date that such control ceases.All significant inter-group balances, investment, transactionsand unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being disposed, theoperating results and cash flows prior to the date of disposal are included in the consolidated income statement andconsolidated cash flow statement; for subsidiaries disposed during the period, the opening balances of theconsolidated balance sheet would not be restated. For subsidiaries acquired from a business combination not undercommon control, their operating results and cash flows subsequent to the acquisition date are included in theconsolidated income statement and consolidated cash flow statement, and the opening balances and comparativefigures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a businesscombination under common control, their operating results and cash flows from the date of commencement of theaccounting period in which the combination occurred to the date of combination are included in the consolidatedincome statement and consolidated cash flow statement, and the comparative figures of the consolidated balancesheet would be restated.In preparing the consolidated financial statements, where the accounting policies or the accounting periods areinconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted inaccordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control, adjusted several financial statementof the subsidiary based on the fair value of recognizable net assets on purchased day while financial statementconsolidation; concerning the subsidiary obtained under combination with same control, considered current statusof being control by ultimate controller for consolidation while financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to thesubsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains andlosses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed andoffset between "the net profit attributable to the owners of the parent company" and "minority interest" accordingto the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internaltransactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profitattributable to the owners of the parent company" and "minority interest" according to the distribution ratio of theCompany to the subsidiary of the seller.The share of the subsidiary¡¯s ownership interest not attributable to the Company is listed as ¡°minority interest¡± itemunder the ownership interest in the consolidated balance sheet. The share of the subsidiary¡¯s current profit or lossattributable to the minority interests is listed as "minority interest" item under the net profit item in the consolidatedincome statement. The share of the subsidiary¡¯s current consolidated income attributable to the minority interests islisted as the ¡°total consolidated income attributable to the minority shareholders¡± item under the total consolidatedincome item in the consolidated income statement. If there are minority shareholders, add the "minority interests"
item in the consolidated statement of change in equity to reflect the changes of the minority interests. If the lossesof the current period shared by a subsidiary¡¯s minority shareholders exceed the share that the minority shareholdershold 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 valueof the remaining equity interest is re-measured on the date when the control ceased. The difference between the sumof the consideration received from disposal of equity interest and the fair value of the remaining equity interest, lessthe net assets attributable to the company since the acquisition date, is recognized as the investment income fromthe loss of control. Other comprehensive income relating to original equity investment in subsidiaries shall be treatedon the same basis as if the relevant assets or liabilities were disposed of by the purchaser directly when the controlis lost, namely be transferred to current investment income other than the relevant part of the movement arisingfrom 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 asAccounting Standards for business Enterprises 2 ¨C Long-term Equity Investments or Accounting Standards forbusiness Enterprises 22 ¨C Financial Instruments Recognition and Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should beregarded as a bundle of transactions. When the economic effects and terms and conditions of the disposaltransactions met one or more of the following situations, the transactions shall normally be accounted for as a bundleof transactions: ¢ÙThe transactions are entered into after considering the mutual consequences of each individualtransaction; ¢Ú The transactions need to be considered as a whole in order to achieve a deal in commercialsense;¢ÛThe occurrence of an individual transaction depends on the occurrence of one or more individualtransactions in the series; ¢Ü The result of an individual transaction is not economical, but it would be economicalafter taking into account of other transactions in the series. When the transactions are not regarded as a bundle oftransactions, the individual transactions shall be accounted as ¡°disposal of a portion of an interest in a subsidiarywhich does not lead to loss of control¡± and ¡°disposal of a portion of an interest in a subsidiary which lead to loss ofcontrol¡±. When the transactions are regarded as a bundle of transactions, the transactions shall be accounted as asingle disposal transaction; however, the difference between the consideration received from disposal and the shareof net assets disposed in each individual transactions before loss of control shall be recognized as othercomprehensive income, and reclassified as profit or loss arising from the loss of control when control is lost.
7. Joint arrangement classification and accounting treatment for joint operationsIn accordance with the Company¡¯s rights and obligation under a joint arrangement, the Company classifies jointarrangements into: joint ventures and joint operations.The Company confirms the following items related to the share of interests in its joint operations, and in accordancewith the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company inappropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. 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 bythe Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer as knownamount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the middlerate of the market exchange rate published by the People's Bank of China on the transaction date. There into, theoccurred foreign currency exchange or transactions involved in the foreign currency exchange are converted inaccordance with the actual exchange rate in the transactions.At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is convertedinto the recording currency amountin accordance with the middle rate of the market exchange rate published by thePeople's Bank of China on the transaction date. The balance between the recording currency amount convertedaccording toexchange rate at the balance sheet date and the original recording currency amount is disposed as theexchange gains or losses. There into, theexchange gains or lossesoccurred in the foreign currency loans related tothe purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowingcosts; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest isincluded in the current financial expenses.At the balance sheet date, the foreign currency non-monetary itemsmeasured withthe historical costs are convertedinaccordance with the middle rate of the market exchange rate published by the People's Bank of China on thetransaction datewithout changing its original recording currency amount; the foreign currency non-monetaryitemsmeasured with the fair value are convertedin accordance with the middle rate of the market exchange ratepublished by the People's Bank of China on the fair value date,and the generated exchange gains and losses areincluded in the current profits and losses as the gains and losses from changes in fair value.The following displays the methods for translating financial statements involving foreign operations into thestatements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at thespot exchange rates on the balance sheet date. Among the owners¡¯ equity items, the items other than ¡°undistributedprofits¡± are translated at the spot exchange rates of the transaction dates. The income and expense items in theincome statements of overseas operations are translated at the average exchange rates of the transaction dates.Theexchange difference arising from the above mentioned translation are recognized in other comprehensive incomeand is shown separately under owner¡¯ equity in the balance sheet; such exchange difference will be reclassified toprofit or loss in current year when the foreign operation is disposed according to the proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financialliability or equity instrument for other units.
(1) Recognition and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The recognition of a financial assets shall be terminated if it meets one of the following conditions:
¢Ù the contractual right to receive the cash flow of the financial assets terminates; and
¢Ú the financial assets is transferred and the company transfers substantially all the risks and rewards of ownershipof the financial asset to the transferring party;
¢Úthe financial asset was transferred and control, although the company has neither transferred nor retained almostall the risks and rewards of the ownership of a financial asset, it relinquishes control over the financial asset.If all or part of the current obligations of a financial liability has been discharged, the financial liability or part of itis terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the existingfinancial liabilities with new financial liabilities, and the new financial liabilities and the existing financial liabilitiesare substantially different from the contract terms, terminated the recognition of the existing financial liabilities andrecognize the new financial liabilities at the same time.Financial assets are traded in the normal way and their accounting recognition and terminated the recognition ofproceed on a trade date basis.
(2) Classification and measurement of financial assets
At the initial recognition, according to the business model of managing financial assets and the contractual cashflow characteristics of financial assets, the Company classifies the financial assets into the financial assets measuredat amortized cost, the financial assets measured at fair value and whose changes are included in other comprehensiveincome, 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 at initial recognition, but if the receivables or receivables financingarising from the sale of goods or the provision of services do not include a significant financing component or donot consider a financing component that does not exceed one year, it shall be initially measured in accordance withthe transaction value. For financial assets measured at fair value and whose changes are included in the currentprofit or loss, related transaction costs are directly included in the current profit and loss; for other types of financialassets, related transaction costs are included in the initially recognized amount.The business model for managing financial assets refers to how the Company manages financial assets to generatecash flows. The business model determines whether the cash flow of financial assets managed by the Company isbased on contract cash flow, selling financial assets or both. The Company determines the business model formanaging financial assets based on objective facts and based on the specific business objectives of financial assetsmanagement determined by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flows generated by the relevant financial assets on a specific date are only payments for theprincipal and the interest based on the outstanding principal amount. The principal is the fair value of the financialassets at initial recognition; the interest includes the time value of money, the credit risk associated with theoutstanding principal amount for a specific period, and other basic borrowing risks, costs and consideration of profit.In addition, the Company evaluates the contractual terms that may result in changes in the time distribution or theamount of contractual cash flows of the financial assets to determine whether they meet the requirements of theabove contractual cash flow characteristics.Only when the Company changes its business model of managing financial assets, all affected financial assets arereclassified on the first day of the first reporting period after the business model changes, otherwise the financialassets are not allowed to be reclassified after initial recognition.
¢Ù Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven¡¯t been designated asfinancial assets measured at fair value and whose changes are included in current profit or loss as financial assetsmeasured 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 is only paid forthe principal and interest based on the outstanding principal amount.After initial recognition, such financial assets are measured at amortized cost by using the effective interest method.Gains or losses arising from financial assets which are measured at amortized cost and are not a component of anyhedging relationship are included in current profit or loss when being terminated for recognition, amortized byeffective interest method, or impaired.
¢Ú 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 haven¡¯t been designated asfinancial assets measured at fair value and whose changes are included in current profit or loss as financial assetsmeasured at fair value and whose changes are included in other comprehensive income:
A. the Group's business model for managing the financial assets is targeted at both the collection of contractual cashflows and the sale of financial assets; andB. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only thepayment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment lossesor gains and exchange gains and losses calculated by using the effective interest method are included in profit orloss for the period, and other gains or losses are included in other comprehensive income. When being terminate forrecognition, the accumulated gains or losses previously included in other comprehensive income are transferredfrom other comprehensive income and included in current profit or loss.
¢ÛFinancial 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 areincluded in other comprehensive income, the Company classifies all other financial assets as financial assetsmeasured at fair value and whose changes are included in current profit or loss. In the initial recognition, in orderto eliminate or significantly reduce accounting mismatch, the Company irreversibly designates part of the financialassets that should be measured at amortized cost or measured at fair value and whose changes are included in theother comprehensive income as the financial assets measured at fair value and whose changes are included in currentprofit or loss.After the initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses(including interests and dividend income) are included in the current profit and loss, unless the financial assets arepart of the hedging relationship.However, for non-trading equity instrument investments, the Company irreversibly designates them as the financialassets that are measured at fair value and whose changes are included in other comprehensive income in the initialrecognition. The designation is made based on a single investment and the relevant investment is in line with thedefinition of equity instruments from the issuer's perspective. After initial recognition, such financial assets aresubsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss, and
other gains or losses and changes in fair value are included in other comprehensive income. When it is terminatedfor recognition, the accumulated gains or losses previously included in other comprehensive income are transferredfrom other comprehensive income and included in retained earnings.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whosechanges are included in current profit or loss and financial liabilities measured at amortized cost at the initialrecognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whosechanges are included in current profit or loss, the related transaction expenses are included in the initial recognitionamount.
¢ÙFinancial liability measured by fair value and with variation reckoned into current gains/lossesFinancial liability measured by fair value and with variation reckoned into current gains/losses including tradablefinancial liability and the financial liabilities that are designated as fair value in the initial recognition and whosechanges are included in current profit or loss. For such financial liabilities, the subsequent measurement is based onfair value, and the gains or losses arising from changes in fair value and the dividends and interest expenses relatedto these financial liabilities are included in current profit or loss.
¢ÚFinancial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. Thegain or loss arising from recognition termination or amortization is included in current profit or loss.
¢ÛDistinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentiallyadverse conditions.C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments inthe future, and the enterprise will deliver a variable amount of its own equity instruments according to the contract.D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in thefuture, except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixedamount of their own equity instruments.An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deductingall liabilities.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or otherfinancial assets, the contractual obligation is consistent with the definition of financial liability.If a financial instrument is required to be settled or can be settled by the Company's own equity instruments, it isnecessary to consider whether the Company's own equity instruments used to settle the instrument are a substitutefor cash or other financial assets, or to make the instrument holder enjoy the residual equity in the assets of theissuer after deducting all liabilities. In the former case, the instrument is the Company's financial liability; if it is thelatter, the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have sufficientavailable data and other information support to determine the fair value of related financial assets and financial
liabilities. The company divides the input values used by valuation techniques into the following levels and usesthem in sequence:
¢Ù The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on themeasurement date in the active market;
¢Ú The second-level input value is the direct or indirect observable input value of the relevant assets or liabilitiesother than the first-level input value, including quotations of similar assets or liabilities in an active market;quotations of same or similar assets or liabilities in an active market; other observable input value other thanquotations, such as interest rate and yield curves that are observable during the normal quote interval; market-validated input value, etc.;
¢Û The third-level input value is the unobservable input value of the relevant assets or liabilities, including theinterest rate that cannot be directly observed or cannot be verified by observable market data, stock volatility, futurecash flow of the retirement obligation assumed in the business combination, and financial forecasting made by itsown data, etc.
(5) Impairment of financial assets
On the basis of expected credit losses, the Company performs impairment treatment on financial assets measuredat amortized cost and creditors¡¯ investmentetc. measured at fair value and whose changes are included in othercomprehensive income and recognize the provisions for loss.
¢ÙMeasurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk ofdefault. Credit loss refers to the difference between all contractual cash flows that the Company discounts at theoriginal actual interest rate and are receivable in accordance with contract and all cash flows expected to be received,that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets that havesuffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted by credit.When measuring expected credit losses, the Company individually evaluates credit risk for financial assets withsignificantly different credit risks, such as receivables involving litigation and arbitration with the other party, orreceivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations, andso on.Except for the financial assets that separately assess the credit risks, the Company classified the account receivableaccording to their characteristic of risks, calculated the expected credit losses on basis of portfolio. Basis fordetermining the portfolio as follow:
A - Note receivableNote receivable1: bank acceptanceNote receivable2: trade acceptanceB - Account receivableAccount receivable 1: receivable from clientsAccount receivable 2: receivable from internal related partyC- Receivable financingReceivable financing 1: bank acceptanceReceivable financing 2: trade acceptanceD- Other account receivables
Other account receivables 1: receivable from internal related partyOther account receivables 2: receivable from othersAs for the note receivable, account receivable, receivable financing and other account receivable classified inportfolio, by referring to the experience of historical credit loss, the expected credit loss is calculated by combiningthe current situation and the forecast of future economic conditions.Except for the financial assets adopting simplified metering method, the Company assesses at each balance sheetdate whether its credit risk has increased significantly since initial recognition. If credit risk has not increasedsignificantly since initial recognition, it is in the first stage, the Company measures the loss provisions based on theamount equivalent to the expected credit loss in the next 12 months; if the credit risk has increased significantlysince initial recognition but no credit impairment has occurred, it is in the second stage, the Companymeasures theloss provisions based on the amount equivalent to the expected credit loss for the entire duration; if creditimpairment occurs after initial recognition, it is in the third stage, the Companymeasures the loss provisions basedon the amount equivalent to the expected credit loss for the entire duration.For financial instruments with low creditrisks at the balance sheet date, the Company assumes that their credit risks have not increased significantly sinceinitial recognition.The Company evaluates the expected credit losses of financial instruments based on individual items andportfolios.When assessing expected credit losses, the Company considers reasonable and evidence-basedinformation about past events, current conditions, and forecasts of future economic conditions.When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flowof a financial asset, the Company directly writes down the book balance of the financial asset.
¢ÚAssessment of a significant increase in credit risk:
The Company determines the relative changes in default risk of the financial instrument occurred in the expectedduration and assess whether the credit risks offinancial instrument has increased significantly since the initialrecognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk ofdefault offinancial instrument on the initial recognition date. When determining whether the credit risk has increasedsignificantly since the initial recognition, the Company considers reasonable and evidence-based information thatcan be obtained without unnecessary additional costs or effort, including forward-looking information. Theinformation considered by the Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred orare expected;C. Serious deterioration of the debtor¡¯s operating results that have occurred or are expected;D. Changes in existing or anticipated technical, market, economic or legal circumstances that will have a materialadverse effect on the debtor's ability to repay the company.Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantlyon the basis of a single financial instrument or combination of financial instruments. When conducting anassessment based on a combination of financial instruments, the Company can classify financial instruments basedon common credit risk characteristics, such as overdue information and credit risk ratings.The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company, and the assessment does not consider the Company
to take recourse actions such as realizing collateral (if held).
¢ÛFinancial assets with credit impairment
On the balance sheet date, the Company assesses whether the credit of financial assets measured at amortized costand the credit of debt investments measured at fair value and whose changes are included in other comprehensiveincome has been impaired. When one or more events that adversely affect the expected future cash flows of afinancial asset occur, the financial asset becomes a financial asset that has suffered credit impairment. Evidence thatcredit impairment has occurred in financial assets includes the following observable information:
A. The issuer or the debtor has significant financial difficulties;B. The debtor breaches the contract, such as default or overdue repayment of interest or principal;C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic orcontractual considerations relating to the financial difficulties of the debtor;D. The debtor is likely to go bankrupt or carry out other financial restructurings;E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset todisappear.
¢ÜPresentation of expected credit loss provisions
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Companyre-measures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the lossprovisions shall be included in current profit and loss as impairment losses or gains. For financial assets measuredat amortized cost, the loss provisions are written off against the book value of the financial assets listed in thebalance sheet; for debt investments measured at fair value and whose changes are included in other comprehensiveincome, the Company recognizes the loss provisions in other comprehensive income and does not deduct the bookvalue of the financial asset.
¢ÝWrite-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partiallyrecovered, directly write down the book balance of the financial asset. Such write-downs constitute the terminationof recognition for related financial assets. This usually occurs when the Company determines that the debtor has noassets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However,according to the Company's procedures for recovering the due amount, the financial assets that have been writtendown may still be affected by the execution activities.If the financial assets that have been written down are recovered afterwards, they shall be included in the profit orloss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)other than the issuer of the financial assets.For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assetsto the transferee, terminate the recognition of the financial assets; if almost all the risks and rewards of ownershipof financial assets have been retained, 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 as following situations: If the control of the financial assets is abandoned, terminate the recognition of thefinancial assets and determine the resulting assets and liabilities. If the control of the financial assets is not
abandoned, determine the relevant financial assets according to the extent to which they continue to be involved inthe transferred financial assets, and determine the related liabilities accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group 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 financialassets and liabilities are listed in the balance sheet without being balanced out.
11. Note receivable
Note receivable 1: bank acceptanceNote receivable 2: trade acceptanceThe Company calculates expected credit losses by referring to historical credit loss experience, taking into accountcurrent conditions and forecasts of the future economic situation.
12.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 accountcurrent conditions and forecasts of the future economic situation.
13.Account receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included inother comprehensive income are classified as receivables financing within one year(including one year) from thedate of acquisition. Relevant accounting policy found more in 10. Financial Instrument in Note V.
14.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 accountcurrent conditions and forecasts of the future economic situation.
15.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 in cost that it should bear is carried forward at the end of the period, and the standard cost isadjusted to the actual cost.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairmentprovisionInventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis ofoverall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs ofinventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price lowering
than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the differencebetween costs of single inventory item over its net realizable value. As for other raw materials with large quantityand comparatively low unit prices, inventory impairment provision is withdrawn pursuant to categories.As for finished goods, commodities and materials available for direct sales, their net realizable values are determinedby their estimated selling prices less estimated sales expenses and relevant taxes. For material inventories held forpurpose of production, their net realizable values are determined by the estimated selling prices of finished productsless estimated costs, estimated sales expenses and relevant taxes accumulated till completion of production. As forinventories held for implementation of sales contracts or service contracts, their net realizable values are calculatedon the basis of contract prices. In the event that inventories held by a company exceed order amount as agreed insales contracts, net realizable values of the surplus part are calculated on the basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
¢ÙLow-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
¢ÚWrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
16.Contractual assets
The Company presents the Contractual assets or Contractual liability in the balance sheet based on the relationshipbetween the performance obligation and the customer¡¯s payment.Recognition method and standard of Contractual assets: Contractual assets refer to the right of a company to receiveconsideration after transferring goods or providing services to customers, and this right depends on other factorsbesides the passage of time. The company's unconditional (that is, only depending on the passage of time) right tocollect consideration from customers are separately listed as receivables.Method for determining expected credit losses of Contractual assets: the method for determining expected creditlosses of Contractual assets is consistent with the method for determining expected credit losses of accountsreceivable.Accounting treatment method of expected credit losses of Contractual assets: if the Contractual assets are impaired,the company shall debit the "asset impairment loss" subject and credit the "contract asset impairment provision"subject according to the amount that should be written down. When reversing the provision for asset impairmentthat has already been withdrawn, make opposite accounting entries.
17.Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction, the non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur, that is,the Company has made resolution on the selling plan and obtained definite purchase commitment, the selling isestimated to be completed within one year. Those assets whose disposal is subject to approval from relevantauthority or supervisory department under relevant requirements are subject to that approval.Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary, whether or not
the Company retains part equity investment after such disposal, investment in the subsidiary shall be classified inits entirety as held for sale in the separate financial statement of the parent company subject to that the investmentin the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale, and all theassets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial statement.The purchase commitment identified refers to the legally binding purchase agreement entered into between theCompany and other parties, which sets out certain major terms relating to transaction price, time and adequatelystringent punishment for default, which render an extremely minor possibility for material adjustment or revocationof the agreement.Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If thecarrying value is higher than fair value less selling expense, the excess shall be recognized as impairment loss andrecorded in profit or loss for the period, and allowance for impairment shall be provided for in respect of the assets.In respect of impairment loss recognized for disposal group held for sale, carrying value of the goodwill in thedisposal group shall be deducted first, and then deduct the carrying value of the non-current assets within thedisposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by theircarrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheetdate increases, the amount previously reduced for accounting shall be recovered and reverted from the impairmentloss recognized after the asset is classified under the category of held for sale, with the amount reverted recorded inprofit or loss for the period. Impairment loss recognized before the asset is classified under the category of held forsale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent balancesheet date less sales expenses increases, the amount reduced for accounting in previous periods shall be restored,and shall be reverted in the impairment loss recognized in respect of the non-current assets which are applicable torelevant 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, andthe debt interests and other fees in the disposal group held for sale continue to be recognized.If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet thecondition of being classified as held for sale or the non-current assets are removed from the disposal group held forsale, they will be measured at the lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the depreciation,amortization or impairment that should have been recognized given they are not classified as held for sale;(ii) The recoverable amount.
18.Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint controlor significant influence over the invested party. Long-term equity investment without control or joint control orsignificant influence of the Group is accounted for as available-for-sale financial assets or financial assets measuredby fair value and with variation reckoned into current gains/losses. As for other accounting policies found more in¡°10. Financial instrument¡± in Note V.
(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:
¢ÙFor a long-term equity investment acquired through a business combination involving enterprises under commoncontrol, the initial investment cost of the long-term equity investment shall be the absorbing party¡¯s share of thecarrying amount of the owner¡¯s equity under the consolidated financial statements of the ultimate controlling partyon the date of combination. The difference between the initial cost of the long-term equity investment and the cashpaid, non-cash assets transferred as well as the book value of the debts borne by the absorbing party shall offsetagainst the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Ifthe consideration of the merger is satisfied by issue of equity securities, the initial investment cost of the long-termequity 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 facevalue of the shares issued as share capital, the difference between the initial cost of the long-term equity investmentand total face value of the shares issued shall be used to offset against the capital reserve. If the capital reserve isinsufficient to offset, the retained earnings shall be adjusted. For business combination resulted in an enterpriseunder common control by acquiring equity of the absorbing party under common control through a stage-upapproach with several transactions, these transactions will be judged whether they shall be treat as ¡°transactions ina basket¡±. If they belong to ¡°transactions in a basket¡±, these transactions will be accounted for a transaction inobtaining control. If they are not belong to ¡°transactions in a basket¡±, the initial investment cost of the long-termequity 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. The differencebetween the initial cost of the long-term equity investment and the aggregate of the carrying amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for further shareacquisition 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 previouslyheld equity investment accounted for using equity method on the date of combination or recognized for available-for-sale financial assets will not be accounted for.
¢Ú For the long-term equity investment obtained by business combination not under the same control, the fair valueof the assets involved, the equity instruments issued and the liabilities incurred or assumed on the transaction date,plus the combined cost directly related to the acquisition is used as the initial investment cost of the long-term equityinvestment. The identifiable assets of the combined party and the liabilities (including contingent liabilities)assumed by the combined party on the combining date are all measured at fair value, regardless of the amount ofminority shareholders¡¯ equity. The amount of the combined cost exceeding the fair value of the identifiable netassets of the combined party obtained by the Company is recorded as goodwill, and the amount below the fair valueof the identifiable net assets of the combining party is directly recognized in the consolidated income statement.(Forbusiness 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 whetherthey shall be treat as ¡°transactions in a basket¡±. If they belong to ¡°transactions in a basket¡±, these transactions willbe accounted for a transaction in obtaining control. If they are not belong to ¡°transactions in a basket¡±, the initialinvestment cost of the long-term equity investment accounted for using cost method shall be the aggregate of thecarrying amount of equity investment previously held by the acquire and the additional investment cost. Forpreviously held equity accounted for using equity method, relevant other comprehensive income will not be
accounted for. For previously held equity investment classified as available-for-sale financial asset, the differencebetween its fair value and carrying amount, as well as the accumulated movement in fair value previously includedin the other comprehensive income shall be transferred to profit or loss for the current period.)
¢ÚLong-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined accordingto actual payment for purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities isdetermined at fair value of such securities;C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out; otherwisedetermined at carrying value of the assets exchanged-out if it is not of commercial nature;D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at fairvalue of such investment.
(2) Subsequent measurement on long-term equity investment
¢ÙPresented controlling ability on invested party, the investment shall use cost method for measurement.
¢ÚLong-term equity investments with joint control (excluding those constitute joint ventures) or significantinfluence on the invested party are accounted for using equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds the investor¡¯sinterest in the fair value of the invested party¡¯s identifiable net assets at the acquisition date, no adjustment shall bemade to the initial investment cost. Where the initial investment cost is less than the investor¡¯s interest in the fairvalue of the invested party¡¯s identifiable net assets at the acquisition date, the difference shall be charged to profitor loss for the current period, and the cost of the long term equity investment shall be adjusted accordingly.Under the equity method, investment gain and other comprehensive income shall be recognized based on theGroup¡¯s share of the net profits 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¡¯s share of profit or cash dividend distributed by theinvested party. In respect of the other movement of net profit or loss, other comprehensive income and profitdistribution of invested party, the carrying value of long-term equity investment shall be adjusted and included inthe capital reserves. The Group shall recognize its share of the invested party¡¯s net profits or losses based on thefair values of the invested party¡¯s individual separately identifiable assets at the time of acquisition, after makingappropriate adjustments thereto. In the event of in-conformity between the accounting policies and accountingperiods of the invested party and the Company, the financial statements of the invested party shall be adjusted inconformity with the accounting policies and accounting periods of the Company. Investment gain and othercomprehensive income shall be recognized accordingly. In respect of the transactions between the Group and itsassociates and joint ventures in which the assets disposed of or sold are not classified as operation, the share ofunrealized gain or loss arising from inter-group transactions shall be eliminated by the portion attributable to theCompany. Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-grouptransactions between the Group and an invested party is not eliminated to the extent that the loss is impairment lossof the transferred assets. In the event that the Group disposed of an asset classified as operation to its joint venturesor associates, which resulted in acquisition of long-term equity investment by the investor without obtaining control,
the initial investment cost of additional long-term equity investment shall be the fair value of disposed operation.The difference between initial investment cost and the carrying value of disposed operation will be fully includedin profit or loss for the current period. In the event that the Group sold an asset classified as operation to its associatesor 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 anoperation from its associates or joint ventures, relevant transaction shall be accounted for in accordance with¡°Accounting Standards for Business Enterprises No. 20 ¡°Business combination¡±. All profit or loss related to thetransaction 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 ofthe long-term equity investment together with any long-term interests that in substance form part of the investor¡¯snet investment in the invested party are reduced to zero. If the Group has to assume additional obligations, theestimated obligation assumed shall be provided for and 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 ofprofits after setting off against the share of unrecognized losses.
¢ÛAcquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased oflong-term equity investment which was compared to fair value of identifiable net assets recognized which aremeasured based on the continuous measurement since the acquisition date (or combination date) of subsidiariesattributable to the Group calculated according to the proportion of newly acquired shares, the difference of whichrecognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retainedearnings.
¢ÜDisposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in asubsidiary without loss of control, the difference between disposal cost and disposal of long-term equity investmentsrelative to the net assets of the subsidiary is charged to the owners¡¯ equity. If disposal of a portion of the long-termequity investments in a subsidiary by the parent company results in a change in control, it shall be accounted for inaccordance with the relevant accounting policies as described in Note V.-6 ¡°Preparation Method of the ConsolidatedFinancial Statements¡±.On disposal of a long-term equity investment otherwise, the difference between the carrying amount of theinvestment and the actual consideration paid is recognized through profit or loss in the current period.In respect of long-term equity investment accounted for using equity method with the remaining equity interest afterdisposal also accounted for using equity method, other comprehensive income previously under owners¡¯ equityshall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset orliability by invested party on pro rata basis at the time of disposal. The owners¡¯ equity recognized for the movementof other owners¡¯ equity (excluding net profit or loss, other comprehensive income and profit distribution of investedparty) shall be transferred to profit or loss for the current period on pro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest afterdisposal also accounted for cost equity method, other comprehensive income measured and reckoned under equitymethod or financial instrument before control of the invested party unit acquired 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 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 profit or loss, othercomprehensive 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, inpreparing separate financial statements, the remaining equity interest which can apply common control or imposesignificant influence over the invested party after disposal shall be accounted for using equity method. Suchremaining equity interest shall be treated as accounting for using equity method since it is obtained and adjustmentwas made accordingly. For remaining equity interest which cannot apply common control or impose significantinfluence over the invested party after disposal, it shall be accounted for using the recognition and measurementstandard 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 recognizedusing equity method or the recognition and measurement standard of financial instruments before the Groupobtained control over the invested party, 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 the control over invested party islost. Movement of other owners¡¯ equity (excluding net profit or loss, other comprehensive income and profitdistribution under net asset of invested party accounted for and recognized using equity method) shall be transferredto profit or loss for the current period at the time when the control over invested party is lost. Of which, for theremaining equity interest after disposal accounted for using equity method, other comprehensive income and otherowners¡¯ equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted forusing the recognition and measurement standard of financial instruments, other comprehensive income and otherowners¡¯ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equityinvestment by the Group, the remaining equity interest after disposal shall be accounted for using the recognitionand measurement standard of financial instruments. The difference between its fair value and carrying amount as atthe date of losing common control or significant influence shall be included in profit or loss for the current period.In respect of other comprehensive income recognized under previous equity investment using equity method, itshall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset orliability by invested party at the time when equity method was ceased to be used. Movement of other owners¡¯ equity(excluding net profit or loss, other comprehensive income and profit distribution under net asset of invested partyaccounted for and recognized using equity method) shall be transferred to profit or loss for the current period at thetime when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until thecontrol over the subsidiary is lost. If the said transactions belong to ¡°transactions in a basket¡±, each transaction shallbe accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. Thedifference between the disposal consideration for each transaction and the carrying amount of the correspondinglong-term equity investment of disposed equity interest before loss of control shall initially recognized as othercomprehensive income, and subsequently transferred to profit or loss arising from loss of control for the currentperiod upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-25.¡±impairment of long-term assets¡±
(4) Criteria of Joint control and significant influence
Joint control is the Company¡¯s contractually agreed sharing of control over an arrangement, which relevant activitiesof such arrangement must be decided by unanimously agreement from parties who share control. All the participantsor participant group whether have controlling over such arrangement as a group or not shall be judge firstly, thanjudge that whether the decision-making for such arrangement are agreed unanimity by the participants or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions ofan invested party, but to fail to control or joint control the formulation of such policies together with otherparties.While recognizing whether have significant influence by invested party, the potential factors of voting poweras current convertible bonds and current executable warrant of the invested party held by investors and other partiesshall be thank over.
19.Investment real estate
Measurement model of investment real estateCost measurementDepreciation or amortizationInvestment real estate is stated at cost. During which, the cost of externally purchased properties held-for-investmentincludes purchasing price, relevant taxes and surcharges and other expenses which are directly attributable to theasset. Cost of self construction of properties held for investment is composed of necessary expenses occurred forconstructing those assets to a state expected to be available for use. Properties held for investment by investors arestated at the value agreed in an investment contract or agreement, but those under contract or agreement withoutfair value are stated at fair value.The Company adopts cost methodology amid subsequent measurement of properties held for investment, whiledepreciation and amortization is calculated using the straight-line method according to their estimated useful lives.The basis of provision for impairment of properties held for investment is referred to Note V-¡°25.Impairment oflong-term assets¡±
20.Fix assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with aservice life excess one year and has more unit value.
(2) Depreciation methods
Category
Category | Depreciation method | Years of depreciation£¨year£© | Scrap value rate£¨%£© | Yearly depreciation rate£¨%£© |
House and Building | Straight-line depreciation | 20¡«35 | 5 | 2.71¡«4.75 |
Machinery equipment | Straight-line depreciation | 10 | 5 | 9.50 |
Transportation equipment | Straight-line depreciation | 4¡«5 | 5 | 19.00¡«23.75 |
Electronic and other equipment | Straight-line depreciation | 3¡«10 | 5 | 9.50¡«31.67 |
For the fixed assets with impairment provision, the depreciation amount shall be calculated after deducting theaccumulated amount of impairment provision for fixed assets
(3) Recognition basis, valuation and depreciation method for financial lease assetsNot applicable
(4) The impairment test method and provision for impairment of fixed assetsThe impairment test method and provision for impairment of fixed assets found more in Note V-25.¡°Impairmentof long-term assets¡±.
21.Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state, the projects underconstruction are converted into fixed assets on the basis of the estimated value of project estimates or pricing orproject actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made to thedifference of the original value of fixed assets after final accounting is completed upon completion of projects.The basis of provision for impairment of properties held for construction in processis referred to Note V-¡°25.Impairment of long-term assets¡±
22.Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchangedifferences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur fromthe special borrowings occupied by the fixed assets that need more than one year (including one year) forconstruction, development of investment properties or inventories or from general borrowings, are capitalized andrecorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or lossin the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the followingthree conditions are met:
¢ÙCapital expenditure has been occurred;
¢ÚBorrowing costs have been occurred;
¢Û 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 suchassets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above mentionedcapitalization condition; capitalization of borrowing costs shall be suspended and recognized as current expenditureduring periods in which construction of fixed assets, investment real estate and inventory are interrupted abnormally,when the interruption is for a continuous period of more than 3 months, until the acquisition, construction orproduction of the qualifying asset is resumed; capitalization shall discontinue when the qualifying asset is ready forits intended use or sale, the borrowing costs occurred subsequently shall reckoned into financial expenses whileoccurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of theassets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred inthe period less interest income derived from unused borrowings deposited in banks or less investment incomederived from provisional investment, are recognized.With respect to the general borrowings occupied for acquisition, construction or production and development of theassets qualified for capitalization, the capitalized interest amount for general borrowings is calculated andrecognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. Thecapitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
23.Right-of-use assets
The right-of-use asset refers to the right of the Company, as the lessee, to use the leased asset during the lease term.On the commencement date of the lease term, the Company recognizes the right-of-use assets for leases other thanshort-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. The cost includesthe initial measurement amount of the lease liability; the lease payments made on or before the commencement dateof the lease term, deduct the relevant amount of the lease incentive already enjoyedif there is a lease incentive;theinitial direct expenses incurred by the lessee; the cost expected to be incurred by the lessee to dismantle and removethe leased assets, restore the site where the leased assets locate, or restore the leased assets to the condition agreedupon in the lease terms, but this does not includethe cost attributable to the production of inventory.The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it can be reasonablydetermined that the ownership of the leased asset can be obtained at the expiration of the lease term, the Companyshall accrue depreciation over the remaining useful life of the leased asset. If it cannot be reasonably determinedthat the ownership of the leased asset can be obtained at the expiration of the lease term, the Company shall accruedepreciation within the shorter of the lease term and the remaining useful life of the leased asset. When therecoverable amount is lower than the book value of the right-of-use asset, the Company shall write down its bookvalue to the recoverable amount.
24. Intangible assets
(1) Measurement, use of life and impairment testing
¢Ù Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technologyetc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other relatedcosts.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value stipulatedin the investment contract or agreement, except where the value stipulated in the contract or agreement is not fair.The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, iscarried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at thecarrying amount of the assets exchanged out.The intangible assets acquired through debt reorganization, are recognized at the fair value.
¢Ú Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer(date of getting land use light); Patented technology, non-patented technology and other intangible assets of theCompany are amortizedby straight-line method with the shortest terms among expected useful life, benefit yearsregulated in the contract and effective age regulated by the laws. The amortization amount shall count in relevantassets costs and current gains/losses according to the benefit object.As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note V-
¡°25.Impairment of long-term assets¡±.
(2)Internal accounting policies relating to research and development expendituresExpenses incurred during the research phase are recognized as profit or loss in the current period; expenses incurredduring the development phase that satisfy the following conditions are recognized as intangible assets (patentedtechnology and non-patents technology):
¢ÙIt is technically feasible that the intangible asset can be used or sold upon completion;
¢Úthere is intention to complete the intangible asset for use or sale;
¢Û The products produced using the intangible asset has a market or the intangible asset itself has a market;
¢Üthere is sufficient support in terms of technology, financial resources and other resources in order to complete thedevelopment of the intangible asset, and there is capability to use or sell the intangible asset;
¢Ý the expenses attributable to the development phase of the intangible asset can be measured reliably.If the expenses incurred during the development phase did not qualify the above mentioned conditions, suchexpenses incurred are accounted for in the profit or loss for the current period.The development expenditurereckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses indevelopment stage listed as development expenditure in balance sheet, and shall be transfer as intangible assetssince such item reached its expected conditions for service.
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-financial assets such as fixed assets, construction in progress, intangible assets with a finite useful life,investment properties measured at cost, and long-term equity investments in subsidiaries, joint controlled entitiesand associates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall beestimated for impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets beyondworking conditions will be tested for impairment annually, regardless of whether there is any indication ofimpairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, theimpairment provision will be made according to the difference and recognized as an impairment loss. Therecoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the futurecash flows expected to be derived from the asset. An asset¡¯s fair value is the price in a sale agreement in an arm¡¯slength transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall bedetermined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shallbe based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the assetfor its intended sale. The present value of the future cash flows expected to be derived from the asset over the courseof continued use and final disposal is determined as the amount discounted using an appropriately selected discountrate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is not possible toestimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of theasset group to which the asset belongs. The asset group is the smallest group of assets capable of generating cashflows independently.For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financialstatements shall be allocated to the asset groups or group of assets benefiting from synergy of business combination.
If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment loss. Theamount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset group or setof asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the asset group orset 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 thepart whose value can be recovered.
26.Long-term deferred expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficialterm of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense itemscannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the profit orloss during recognition.
27.Contractual liability
The Company lists the obligation to transfer goods or provide labor services to customers for the considerationreceived or receivable from customers as contractual liabilities, such as the amount that the company has receivedbefore the transfer of the promissorygoods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actualoccurred shall recognized as liability and reckoned into current gains/losses. During the accounting period whenstaff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilitiesand reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned intocapital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while actuallyoccurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses orrelevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits aremeasured in accordance with the fair value; the social insurances including the medical insurance, work-injuryinsurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as thelabor union expenditure and employee education funds withdrawn by rule should be calculated and determined asthe corresponding compensation amount and determined the corresponding liabilities in accordance with thespecified withdrawing basis and proportion, and reckoned in the current profits and losses or relevant asset costs inthe accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employmentbenefits plan refers to the agreement about the post-employment benefits between the enterprise and employees, orthe regulations or measures the enterprise established for providing post-employment benefits to employees.Thereinto, the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn¡¯tundertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefitplans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting treatment for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for compensation fortermination 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 retirementdate, shall be recognized (as compensation for termination of employment) in the current profit or loss by the Groupif the recognition principles for provisions are satisfied.
(4) Accounting treatment for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the employeessatisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans, and thedefined benefit liability confirmed on the balance sheet is the value by subtracting the fair value of plan assets fromthe present value of defined benefit obligation. The defined benefit obligation is annually calculated in accordancewith the expected accumulated welfare unit method by the independent actuary by adopting the treasury bond ratewith similar obligation term and currency. The service charges related to the supplementary retirement benefits(including the service costs of the current period, the previous service costs, and the settlement gains or losses) andthe 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.Lease liability
Substantialon the commencement date of the lease term, the Company recognizes the present value of the unpaidlease payments as lease liabilities. Lease payments include the following five items: fixed payments and in-substance fixed payments, if there is a lease incentive, deduct the amount related to the lease incentive; variablelease payments that depend on an index or ratio, which are determinedat the initial measurement according to theindex or ratio determination on the commencement date of lease term; exercise price for a purchase option providedthat the lessee is reasonably certain that the option shall be exercised; payments for exercising the option to terminatethe lease provided that the lease term reflects that the lessee shall exercise the option to terminate the lease option;estimated payments due based on guaranteed residual value provided by the lessee.When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discountrate. If the interest rate implicit in the lease cannot be determined, the company¡¯s incremental borrowing rate is usedas the discount rate. The Company calculates the interest expense of the lease liability in each period of the leaseterm according to the fixed periodic interest rate, and includes it in the current profit and loss, unless it is otherwisestipulated to be included in the cost of the relevant assets. Variable lease payments that are not included in themeasurement of lease liabilities are included in the current profit and loss when they are actually incurred, unlessotherwise 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 the estimated amount payable fortheguaranteed residual value, or a change in the index or ratio used to determine the lease payment, or a change inthe evaluation results of the purchase option, renewal option or termination option or when the actual exercise
situation changes, the Company shall re-measure the lease liability according to the present value of the changedlease payments.
30. Accrual 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. shallbe recognized as an estimated liability when all of the following conditions are satisfied:
¢Ú the obligation is a present obligation of the Company;
¢Ú it is Contingent that an outflow of economic benefits will be required to settle the obligation;
¢Ú the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off thecontingencies
31. Share-based payment
The Company¡¯s share-based payment is a transaction that grants equity instruments or assumes liabilitiesdetermined on the basis of equity instruments in order to obtain services provided by employees or other parties.The Company¡¯s share-based payment is classified 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 fairvalue of the equity instruments granted to employees. If the Company uses restricted stocks for share-based payment,employees contribute capital to subscribe for stocks, and the stocks shall not be listed for circulation or transfer untilthe unlocking conditions are met and unlocked; if the unlocking conditions specified in the final equity incentiveplan are not met, the Company shall repurchase the stocks at the pre-agreed price. When the Company obtains thepayment for the employees to subscribe for restricted stocks, it shall confirm the share capital and capital reserve(share capital premium) according to the obtained subscription money, and at the same time recognize a liability infull 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 inthe latest obtained number of vested employees, whether they meet the specified performance conditions, and otherfollow-up information. On this basis, the services obtained in the current period are included in related costs orexpenses based on the fair value on the grant date, and the capital reserve shall be increasedaccordingly.For share-based payments that cannot be vested in the end, costs or expenses shall not be recognized, unless thevesting conditions are market conditions or non-vesting conditions. At this time, regardless of whether the marketconditions or the non-vesting conditions are met, as long as all non-market conditions in the vesting conditions aremet, it is deemed as vesting.If the terms of equity-settled share-based payment are modified, at least the services obtained should be confirmedin accordance with the unmodified terms. In addition, any modification that increases the fair value of the equityinstruments granted, or a change that is beneficial to employees on the modification date, is recognized as anincrease in services received.If the equity-settled share payment is canceled, it will be treated as an accelerated vesting on the cancellation day,
and the unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet thenon-vesting conditions but fails to meet within the waiting period, it shall be treated as cancellation of equity-settledshare-based payment. However, if a new equity instrument is granted and it is determined on the date of grant ofthe new equity instrument that the new equity instrument granted is used to replace the cancelled equity instrument,the granted substitute equity instruments shall be treated in the same way as the modification of the original equityinstrument 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 thebasis of shares or other equity instruments undertaken by the Company. If it¡¯s vested immediately after the grant,the fair value of the liabilities assumed on the date of the grant is included in the cost or expense, and the liabilityis increased accordingly. If the service within the waiting period is completed or the specified performanceconditions are met, the service obtained in the current period shall be included in the relevant costs or expensesbased on the best estimate of the vesting situation within the waiting periodand the fair value of the liabilitiesassumed 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 inthe current profit and loss.
32. 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 performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time.When one of the following conditions is met, it belongs to the performance obligation within a certain period oftime, otherwise, it belongs to the performance obligation at a certain point in time: ¢Ú The customer obtains andconsumes the economic benefits brought by the company's performance while the company performs the contract;
¢ÚThe customer can control the goods or services under construction during the company¡¯s performance; ¢ÚThegoods or services produced during the company¡¯s performance have irreplaceable uses, and the company has theright to collect payment for the performance part that has been completed so far during the entire contract period.For performance obligations performed within a certain period of time, the company recognizes revenue inaccordance with the performance progress during that period. When the performance progress cannot be reasonablydetermined, if the cost incurred is expected to be compensated, the revenue shall be recognized according to theamount of the cost incurred until the performance progress can be reasonably determined.For performanceobligations performed at a certain point in time, revenue is recognized at the point when the customer obtains controlof the relevant goods or services. When judging whether the customer has obtained control of the goods, thecompany considers the following signs:¢Ú The company has the current right to receive payment for the goods, thatis, the customer has the current payment obligation for the goods; ¢ÚThe company has transferred the legalownership of the goods to the customer, that is, the customer has the legal ownership of the goods; ¢ÚThe companyhas transferred the goods to the customer in kind, that is, the customer has physically taken possession of the goods;
¢Ú The company has transferred the main risks and rewards of the ownership of the goods to the customer, that is,the customer has obtained the main risks and rewards of the ownership of the goods; ¢Ú The customer has accepted
the goods; ¢ÚOther signs that the customer has obtained control of the goods.
2)Revenue measurement principle
¢ÚThe company measures revenue based on the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration that the company expects to be entitled to receive due to thetransfer of goods or services to customers, and does not include payments collected on behalf of third parties andpayments expected to be returned to customers.
¢ÚIf there is variable consideration in the contract, the company shall determine the best estimate of the variableconsideration according to the expected value or the most likely amount, but the transaction price including thevariable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to besignificantly turned back when the relevant uncertainty is eliminated.
¢Ú If there is a significant financing component in the contract, the company shall determine the transaction pricebased on the amount payable that the customer is assumed to pay in cash when obtaining the control of the goodsor services. The difference between the transaction price and the contract consideration shall be amortized by theeffective interest method during the contract period. On the starting date of the contract, if the company expects thatthe customer pays the price within one year after obtaining control of the goods or services, the significant financingcomponents in the contract shall not be considered.
¢ÚIf the contract contains two or more performance obligations, the company will allocate the transaction price toeach individual performance obligation based on the relative proportion of the stand-alone selling price of the goodspromised by each individual performance obligation on the starting date of the contract.
(2) The company's recognition criteria for sales revenue and specific judgment criteria for recognition time:
The company's domestic sales revenue confirmation time point: the company delivers goods as agreed in the order.On the reconciliation date agreed with the buyer, the goods received and inspected by the buyer during the periodfrom the previous reconciliation date to the current reconciliation date are checked with the buyer. After both partiescheck, the risks and rewards are transferred to the buyer. The company issues an invoice to the buyer according tothe variety, quantity and amount confirmed in the reconciliation, and confirms the realization of sales revenue onthe reconciliation date.Confirmation time of the company's foreign sales revenue: after the customs review is completed, the companyconfirms the realization of sales revenue according to the export date specified on the customs declaration.Differences in accounting policies for revenue recognition due to different operating models for the same type ofbusinessN/A
33.Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at noconsideration. Government grants are classified into government grants related to assets and government grantsrelated to income.As for the assistance object not well-defined in government¡¯s documents, the classification criteria for assets-relatedor income-related grants are as: whether the grants turn to long-term assets due to purchasing for construction orother means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is actuallycan be obtained.If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amountreceived or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall bemeasured at fair value. If the fair value can not be reliably acquired, than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and reckoned into currentgains/losses according to the depreciation process in use life of such assets.A government grant related to income, if they making up relevant expenses and losses for later period, thanrecognized deferred income, and should reckoned into current gain/loss during the period while relevant expensesare recognized; if they making up relevant expenses and losses that occurred, than reckoned into current gains/losses.A government grant related to daily operation activity of the Company should reckoned into other income; thosewithout related to daily operation activity should reckoned into non-operation income and expenses.The financial discount funds received by the Company shall write down relevant borrowing costs.
34.Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between thecarrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets andliability and with taxation basis recognized in line with tax regulations, different between tax base and its bookvalue) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which isused to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence showingthat it is probable to obtain sufficient taxable income to set off the deductible temporary difference in future periods,deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets. Ifit is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in futureperiods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to obtainsufficient taxable income, then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into currentgains/losses, excluding the follow income tax:
¢ÙEnterprise combination;
¢ÚTransactions or events recognized in owner¡¯s equity directly
35. Lease
(1)Accounting for operating lease
A lease is a contract whereby the lessor transfers the right to use the asset to the lessee for consideration within acertain period of time. On the commencement date of the contract, the Company assesses whether the contract is alease or contains a lease. A contract is or contains a lease if a party to a contract transfers its right to control the useof one or more identified assets for a certain period of time in exchange for consideration. If the contract containsmultiple separate leases at the same time, the Company shall split the contract and conduct accounting treatment for
each separate lease. If the contract contains both lease and non-lease parts, the lessee and the lessor shall split thelease and non-lease parts.
(1) The Company as the lessee
For the general accounting treatment of the Company as a lessee, please refer to Note V. 23 ¡°Right-of-Use Assets¡±and Note V. 29 ¡°Lease Liabilities¡±.For short-term leases with a lease term of not more than 12 months and leases of low-value assets with low valuewhen a single asset is new, the Company chooses not to recognize right-of-use assets and lease liabilities, and therelevant rental expenses are included in the current profit and loss or related asset cost on a straight-line basis duringeach period of the lease term.If the lease changes and the following conditions are met at the same time, the Company will account for the leasechange as a separate lease: the lease change expands the scope of the lease by adding the right to use one or moreleased assets; the increased consideration is equivalent to the amount of the separate price for the expanded part ofthe lease adjusted according to the contract situation. If the lease change is not accounted for as a separate lease, onthe effective date of the lease change, the Company shall re-allocate the consideration of the contract after thechange, re-determine the lease term, and remeasure the lease liability at the present value calculated according tothe changed lease payment and the revised discount rate.
(2) The Company as the lessor
On the lease commencement date, the Company classifies the leases that have substantially transferred almost allthe risks and rewards related to the ownership of leased assets as finance leases, and other leases are operating leases.
1) Operating lease
The Company recognizes the lease receipts in various periods during the lease term for the rent in an operatinglease.The initial direct costs should be capitalized, and apportioned on the same basis as the rental incomerecognition in the lease period, and included in the current profit and loss by installment. The obtained variablelease payments related to the operating lease and not included in the lease receipts are included in the current profitand loss when they actually incur.
2)Financing lease
On the commencement date of the lease term, the Company recognizes the finance lease receivables based on thenet investment in the lease (the sum of the unguaranteed residual value and the present value of the lease receiptsnot yet received on the commencement date of the lease term and discounted at the interest rate implicit in the lease),and derecognizes the finance lease assets. During each period of the lease term, the Company calculates andrecognizes interest income based on the interest rate implicit in the lease. The variable lease payments obtained bythe Company, which are not included in the net lease investment measurement, are included in the current profitand loss when actually incurred.
(3) Sale and leaseback
In accordance with the provisions of the Accounting Standards for Business Enterprises No. 14 - Revenue, theCompany evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale.
1) The Company as the lessee
If the asset transfer in a sale-and-leaseback transaction is a sale, the Company shall measure the right-of-use assetformed by the sale and leaseback based on the part of the original book value of the asset related to the right of useobtained by leaseback, and shall only recognize the gain or loss relevant to the rights transferred to the lessor.
If the asset transfer in a sale-and-leaseback transaction is not a sale, the Company shall continue to recognize thetransferred asset, and at the same time recognize a financial liability equal to the transfer income, and account forthe financial liability in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments.
2) The Company as the lessor
If the asset transfer in a sale-and-leaseback transaction is a sale, the Company shall account for the purchase ofassets in accordance with other applicable accounting standards for business enterprises, and shall account for thelease of assets in accordance with the Accounting Standards for Business Enterprises No. 21 - Leases.If the asset transfer in a sale-and-leaseback transaction is not a sale, the Company shall not recognize the transferredasset, but recognize a financial asset equal to the transfer income, and account for the financial asset in accordancewith the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of FinancialInstruments.
(2) Accounting treatment for financing lease
Not applicable
36.Other major accounting policy and estimation
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,the Company needs to judge, estimate and assume thebook value of the report items cannot be accurately measured.These judgments, estimates and assumptions are made on the basis of the historical experience of the Company¡¯smanagement and by considering other relevant factors, which shall impact the reported amounts ofincome, expenses,assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However, the actual resultscaused by the estimated uncertainties may differ from the management's current estimates of the Company so as tocarry out the significant adjustments to the book value of the assets or liabilities to be affected.The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis ofcontinuing operations, the changes in accounting estimates only affect the current period, of which the impactsarerecognized in the current period; the changes in accounting estimates not only affect the current period but also thefuture periods, of which the impacts are recognized in the current and future periods.On the balance sheet date, the important areas ofthe financial statements that the Company needs to judge, estimateand assume are as follows:
(1) Provision for bad debts
The Company has used the expected credit loss model to assess the impairment of financial instruments. Theapplication of the expected credit loss model requires significant judgement and estimates, and must consider allreasonable and evidence-based information, including forward-looking information.In making such judgments andestimates, the Company infers the expected changes in debtors¡¯ credit risks based on historical repayment datacombined with economic policies, macroeconomic indicators, industry risks and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policies, the Company measures by the comparison between the cost and thenet realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, theCompany calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value byevaluating the inventory¡¯s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and judgeand estimate the impacts of events after the balance sheet date. The actual results and the differences between thepreviously 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 & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at thebalance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,the impairment test is also needed when there is a sign of impairment. For the other non-current assets except forthe financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the netamount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, itindicates the impairment.As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement pricesimilar to the assets in the fair trade or the observable market price, and subtract the incremental costsdetermination directly attributable to the disposal of the asset.When estimating the present value of the future cash flow, the Company needs to make significant judgments to theoutput, price, and related operating expenses of the asset (or asset group) and the discount rate used for calculatingthe present value. When estimating the recoverable amount, the Company shall adopt all the relevant informationcan be obtained, including the prediction related to the output, price, and related operating expenses based on thereasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year, which requires to estimating thepresent value of the asset group allocated with goodwill or the future cash flow combined by the asset group. Whenestimating the present value of the future cash flow, the Company needs to estimate the future cash flows generatedby the asset group or the combination of asset group, and select the proper discount rate to determine the presentvalue of the future cash flows.
(4) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to thestraight-line method in the service life after considering the residual value. The Companyregularly reviews theservice life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.The service life is determined by the Company based on the past experience of similar assets and the expectedtechnological updating. If the previous estimates have significant changes, the depreciation and amortizationexpense shall be adjusted in future periods.
(5) Fair value of financial instrument
Financial instruments that do not have active markets to provide quotes need to use valuation techniques todetermine fair value.Valuation techniques include the latest transaction information, discounted cash flow methods,and option pricing models.The Company has established a set of work processes to ensure that qualified personnelare responsible for the calculation, verification and review of fair value.The valuation model used by the Companyuses the market information as much as possible and uses the Company-specific information as little as possible.Itshould be noted that part of the information used in the valuation model requires management¡¯s estimation (such asdiscount rate, target exchange rate volatility, etc.).The Company regularly reviews the above 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 someuncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs toget approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimatedamount, the difference shall have an impact on its current and deferred income taxes during the final identificationperiod.
37.Changes of important accounting policy and estimation
(1)Changes of important accounting policies
¡õApplicable?Not applicable
(2) Changes of important accounting estimations
¡õApplicable?Not applicable
38. Other
N/AVI. Taxation
1. Major taxes and tax rates
Tax
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 ), 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%(IRD America, Borit America), 22%(IRD, Denmark ), 25%(including Borit, Belgium) |
Educational surtax | Turnover tax payable | 5% |
Disclose reasons for different taxpaying body
Taxpaying body | Income tax rate |
WFCA, WFTR, WFAS, WFLD(Nanchang), WFDT, Borit | 25% |
The Company, WFJN, WFLD, WFTT, WFLD(Chongqing) , WFAM ,WFMA, WFSC | 15% |
WFLD (WUHAN) | 20% |
IRD America, Borit America | 21% |
SPV, IRD | 22% |
2. Tax incentives
The Company, WFJN, WFLD, WFTT, WFAM, WFMA, WFSC is accredited as a high-tech enterprise, and enjoy apreferential income tax rate of 15% in 2022.According to the ¡°Continuation of the Enterprise Income Tax Policies for Western Development ¡± No.23 (Year of
2020) issued together by Ministry of Finance, SAT and NDRC,from January 1, 2011 to December 31, 2030, theenterprises located in the west region and mainly engaged in the industrial projects stipulated in the Catalogue ofEncouragement Industries in Western China, and whose main business income accounting for more than 60% ofthe total income of the enterprise in the current year can pay the corporate income tax at the tax rate of 15%. In firsthalf of 2022, WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2022, WFLD (Wuhan) meets the standards of small and low-profit enterprises, and the part of the taxable incomenot exceeding one million yuan shall be included in the taxable income at a reduced rate of 12.5%, and the corporateincome tax shall be paid at the tax rate of 20%; the part of the taxable income exceeding one million yuan but notmore than three million yuan shall be included in the taxable income at a reduced rate of 25%, and the corporateincome tax shall be paid at the tax rate of 20%.VII. Notes to major items in consolidated financial statements
1. Monetary fund
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
Cash on hand | 97,884.43 | 150,438.79 |
Cash in bank | 2,311,600,835.40 | 1,864,868,497.94 |
Other monetary funds | 46,256,476.74 | 31,044,328.96 |
Total | 2,357,955,196.57 | 1,896,063,265.69 |
Including: Total amount saving aboard | 165,582,379.20 | 69,969,414.25 |
Total amount with restriction on use for mortgage, pledge or freeze | 46,256,476.74 | 31,044,328.96 |
Other explanationThe ending balance of other monetary funds includes bank acceptance bill deposit 41,882,720.34 yuan, Mastercarddeposit188,440.00yuan, frozen dividends 4,185,316.40 yuan. The frozen dividend of 4,185,316.40 yuan represents the part of dividendsdistributed by SNAT (stock code:600841) and Miracle Automation (stock code:002009) from 2017 to 2022held by the Company astrading financial assets. According to the notices numbered Yue 03MC [2016]2490 and Yue 03MC [2016]2492 served by GuangdongShenzhen Intermediate People¡¯s Court, these dividends were frozen.
2. Trading financial asset
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Financial assets measured at fair value and whose changes are included in current profit or loss | 3,783,299,041.48 | 6,076,436,069.42 |
Including: | ||
SNAT | 112,472,616.00 | 153,643,308.00 |
Miracle Automation | 87,135,000.00 | 113,793,600.00 |
Lifan Technology | 69,757.95 | 77,802.11 |
ST Zotye | 540,488.96 | |
Forex contracts | 22,219,323.17 | 74,734,940.30 |
Investment in other debt instruments and equity instrument | 3,560,861,855.40 | 5,734,186,419.01 |
Including: | ||
Total | 3,783,299,041.48 | 6,076,436,069.42 |
3. Note receivable
(1) Note receivable
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
Bank acceptance bill | 884,440,280.49 | 968,022,652.08 |
Trade acceptance bill | 105,956,992.13 | 148,527,534.13 |
Total | 990,397,272.62 | 1,116,550,186.21 |
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Provision ratio | Amount | Ratio | Amount | Provision ratio | |||
Including: | ||||||||||
Note receivable with bad debt provision accrual on portfolio | 990,397,272.62 | 100.00% | 990,397,272.62 | 1,116,550,186.21 | 100.00% | 1,116,550,186.21 | ||||
Including: | ||||||||||
Portfolio 1: bank acceptance bill | 884,440,280.49 | 89.30% | 884,440,280.49 | 968,022,652.08 | 86.70% | 968,022,652.08 | ||||
Portfolio 2: trade acceptance bill | 105,956,992.13 | 10.70% | 105,956,992.13 | 148,527,534.13 | 13.30% | 148,527,534.13 | ||||
Total | 990,397,272.62 | 100.00% | 990,397,272.62 | 1,116,550,186.21 | 100.00% | 1,116,550,186.21 |
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please referto the disclosure of other receivables to disclose related information about bad-debt provisions:
¡õApplicable?Not applicable
(2) Bad debt provision accrual collected or switch back
Provision for bad debts in the current period:
¡õApplicable?Not applicable
(3) Notes receivable already pledged by the Company at the end of the period
Unit: RMB/CNY
Item | Amount pledge at period-end |
Bank acceptance bill | 287,986,479.97 |
Trade acceptance bill | 47,980,000.00 |
Total | 335,966,479.97 |
(4) Notes endorsement or discount and undue on balance sheet date
Unit: RMB/CNY
Item
Item | Amount derecognized at period-end | Amount not derecognized at period-end |
Bank acceptance bill | 382,416,632.87 | |
Trade acceptance bill | 16,226,900.00 | |
Total | 398,643,532.87 |
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item | Amount transfer to account receivable at period-end |
Trade acceptance bill | 7,201,691.00 |
Total | 7,201,691.00 |
(6) Note receivable actually written-off in the period
Nil
4. Account receivable
(1) Classification of account receivable
Unit: RMB/CNY
Category | Ending balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Ratio | Amount | Provision ratio | Amount | Ratio | Amount | Provision ratio | |||
Account receivable with bad debt provision accrual on a single basis | 60,762,293.06 | 1.31% | 60,762,293.06 | 100.00% | 61,361,142.44 | 2.87% | 61,361,142.44 | 100.00% | ||
Including: | ||||||||||
Account receivable with bad debt provision accrual on portfolio | 4,566,113,771.52 | 98.69% | 20,703,011.64 | 0.45% | 4,545,410,759.88 | 2,076,986,857.82 | 97.13% | 23,186,564.05 | 1.12% | 2,053,800,293.77 |
Including: | ||||||||||
Total | 4,626,876,064.58 | 100.00% | 81,465,304.70 | 1.76% | 4,545,410,759.88 | 2,138,348,000.26 | 100.00% | 84,547,706.49 | 3.95% | 2,053,800,293.77 |
Bad debt provision accrual on single basis: 60,762,293.06 yuan
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Provision ratio | Accrual causes | |
Hubei Meiyang Auto Industry Co., Ltd. | 20,139,669.45 | 20,139,669.45 | 100.00% | Have difficulty in collection |
Hunan Leopaard Auto Co., Ltd.
Hunan Leopaard Auto Co., Ltd. | 8,910,778.54 | 8,910,778.54 | 100.00% | Have difficulty in collection |
BD bills | 7,201,691.00 | 7,201,691.00 | 100.00% | Have difficulty in collection |
Linyi Zotye Automobile components Manufacturing Co., Ltd. | 6,193,466.77 | 6,193,466.77 | 100.00% | Have difficulty in collection |
Tongling Ruineng Purchasing Co., Ltd. | 4,320,454.34 | 4,320,454.34 | 100.00% | Have difficulty in collection |
Brilliance Automotive Group Holdings Co., Ltd. | 3,469,091.33 | 3,469,091.33 | 100.00% | Have difficulty in collection |
Zhejiang Zotye Auto Manufacturing Co., Ltd. | 3,117,763.27 | 3,117,763.27 | 100.00% | Have difficulty in collection |
Dongfeng Chaoyang Diesel Co., Ltd. | 1,951,447.02 | 1,951,447.02 | 100.00% | Have difficulty in collection |
Jiangsu Kawei Auto Industrial Group Co., Ltd. | 1,932,476.26 | 1,932,476.26 | 100.00% | Have difficulty in collection |
Jiangsu Jintan Automobile Industry Co., Ltd. | 1,059,798.43 | 1,059,798.43 | 100.00% | Have difficulty in collection |
Tianjin Leiwo Engine Co., Ltd. | 1,018,054.89 | 1,018,054.89 | 100.00% | Have difficulty in collection |
Other custom | 1,447,601.76 | 1,447,601.76 | 100.00% | Have difficulty in collection |
Total | 60,762,293.06 | 60,762,293.06 |
Bad debt provision accrual on portfolio: 20,703,011.64 yuan
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Provision ratio | |
Within 6 months | 4,455,951,901.25 | 0.00 | |
6 months to 1 year | 76,568,582.83 | 7,656,858.28 | 10.00% |
1-2 years | 22,502,280.54 | 4,500,456.10 | 20.00% |
2-3 years | 4,242,182.75 | 1,696,873.11 | 40.00% |
Over 3 years | 6,848,824.15 | 6,848,824.15 | 100.00% |
Total | 4,566,113,771.52 | 20,703,011.64 |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
¡õApplicable?Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within 1 year (including 1 year) | 4,532,520,484.08 |
Including: Within 6 months | 4,455,951,901.25 |
6 months to 1 year | 76,568,582.83 |
1-2 years | 24,066,284.61 |
2-3 years | 11,551,531.34 |
Over 3 years | 58,737,764.55 |
3-4 years | 58,737,764.55 |
Total | 4,626,876,064.58 |
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written-off | Other | |||
Bad debt provision | 84,547,706.49 | 1,028,126.00 | 3,168,519.71 | 935,642.25 | -6,365.83 | 81,465,304.70 |
Total | 84,547,706.49 | 1,028,126.00 | 3,168,519.71 | 935,642.25 | -6,365.83 | 81,465,304.70 |
Important bad debt provision collected or switch back: nil
(3) Account receivable actual charge off in the Period
Unit: RMB/CNY
Item
Item | Amount charge off |
Hunan Jiangnan Automobile Manufacturing Co., Ltd. Chongqing Branch | 935,638.55 |
Jiangxi Jiangling Motors Group Industrial Co., Ltd. | 2.86 |
Longgong (Shanghai) Forklift Co., Ltd. | 0.81 |
Weimar Agricultural Machinery Co., Ltd. | 0.01 |
Changzhou Wujin Suochuan Electromechanical Co., Ltd. | 0.02 |
Total | 935,642.25 |
Major charge-off for the major receivable: Nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Name | Ending balance of account receivable | Ratio in total ending balance of account receivables | Ending balance of bad debt reserve |
Customer 1 | 396,779,123.91 | 8.58% | 87,832.18 |
RBCD | 385,798,620.85 | 8.34% | 56,890.49 |
Robert Bosch Company | 328,749,828.77 | 7.11% | 845,939.26 |
Customer 2 | 208,242,386.56 | 4.50% | 1,889,958.00 |
Customer 3 | 135,513,111.82 | 2.93% | 1,162,713.93 |
Total | 1,455,083,071.91 | 31.46% |
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvementNil
5. Account receivable financing
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Note receivable - Bank acceptance bill | 875,577,584.80 | 713,017,014.50 |
Total | 875,577,584.80 | 713,017,014.50 |
Increase and decrease in current period and changes in fair value of receivables financing
¡õApplicable?Not applicable
If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss,please refer to the disclosure method of other account receivables in aspect of impairment provision:
¡õApplicable?Not applicable
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.
6. Account paid in advance
(1) Account age of account paid in advance
Unit: RMB/CNY
Account age
Account age | Ending balance | Opening balance | ||
Amount | Ratio | Amount | Ratio | |
Within 1 year | 3,124,211,770.74 | 99.86% | 172,019,278.72 | 96.61% |
1-2 years | 3,479,238.57 | 0.11% | 3,318,636.20 | 1.86% |
2-3 years | 573,262.44 | 0.02% | 1,140,843.34 | 0.64% |
Over 3 years | 244,798.83 | 0.01% | 1,580,491.73 | 0.89% |
Total | 3,128,509,070.58 | 178,059,249.99 |
Explanation on reasons of failure to settle on important advance payment with age over one year: NA
(2) Top 5 account paid in advance at ending balance by prepayment object
Total period-end balance of top five account paid in advance by prepayment object amounted to 2,794,379,522.02 Yuan, takes 89.32percent of the total advance payment at period-end.
7. Other account receivables
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Dividend receivable | 577,318,855.11 | |
Other account receivables | 26,434,177.38 | 17,908,078.54 |
Total | 603,753,032.49 | 17,908,078.54 |
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
¡õApplicable?Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise) | Ending balance | Opening balance |
RBCD | 382,918,855.11 | |
Zhonglian Automobile Electronics Co., Ltd. | 194,400,000.00 | |
Total | 577,318,855.11 |
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
¡õApplicable?Not applicable
(3) Other account receivables
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature | Ending book balance | Opening book balance |
Intercourse funds from units | 1,878,156.54 | 1,991,247.85 |
Cash deposit
Cash deposit | 7,938,583.18 | 6,212,842.61 |
Staff loans and petty cash | 2,211,482.29 | 555,076.61 |
Social security and provident fund paid | 10,858,487.31 | 10,547,050.70 |
Other | 6,954,976.36 | 1,952,403.17 |
Total | 29,841,685.68 | 21,258,620.94 |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | 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, 2022 | 3,318,719.00 | 31,823.40 | 3,350,542.40 | |
Balance of Jan. 1, 2022 in the period | ||||
Current accrual | 58,372.50 | 58,372.50 | ||
Current reversal | 1,310.00 | 96.60 | 1,406.60 | |
Balance on Jun. 30, 2022 | 3,375,781.50 | 31,726.80 | 3,407,508.30 |
Change of book balance of loss provision with amount has major changes in the period
¡õApplicable?Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within 1 year (including 1 year) | 24,074,333.88 |
Including: Within 6 months | 23,490,608.88 |
6 months to 1 year | 583,725.00 |
1-2 years | 3,022,710.00 |
2-3 years | 31,806.80 |
Over 3 years | 2,712,835.00 |
3-4 years | 2,712,835.00 |
Total | 29,841,685.68 |
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Written-off | Other | |||
Bad debt provision | 3,350,542.40 | 58,372.50 | 1,406.60 | 3,407,508.30 | ||
Total | 3,350,542.40 | 58,372.50 | 1,406.60 | 3,407,508.30 |
Including the important bad debt provision switch back or collected in the period: nil
4) Other receivables actually written-off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise
Enterprise | Nature | Ending balance | Account age | Ratio in total ending balance of other receivables | Ending balance of bad debt reserve |
Ningbo Jiangbei High-Tech Industry Park Development Construction Co., Ltd. | Deposit margin | 1,767,000.00 | Over 3 years | 5.92% | 1,767,000.00 |
Wuxi China Resources Gas Co., Ltd. | Deposit margin | 1,364,750.00 | 7-12 months, 1-2 years | 4.57% | 245,555.00 |
Zhenkunxing Industrial Supermarket (Shanghai) Co., Ltd. | Deposit margin | 1,000,000.00 | 1-2 years | 3.35% | 200,000.00 |
Wuxi Youlian Thermal Power Co., Ltd. | Deposit margin | 750,000.00 | Within 6 months | 2.51% | |
Chongqing Airport Group Co., Ltd. | Deposit margin | 636,710.00 | 1-2 years | 2.13% | 127,342.00 |
Total | 5,518,460.00 | 18.48% | 2,339,897.00 |
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assetsNil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedNil
8. Inventory
Whether the Company needs to comply with the disclosure requirement of real estate industryNo
(1) Category of inventory
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Inventory depreciation reserve or Provision for impairment of contract performance costs | Book value | Book balance | Inventory depreciation reserve or Provision for impairment of contract performance costs | Book value | |
Materials in stock | 709,886,475.14 | 116,703,542.91 | 593,182,932.23 | 693,636,748.61 | 84,791,307.00 | 608,845,441.61 |
Goods in process | 387,987,399.81 | 16,123,840.68 | 371,863,559.13 | 406,224,039.14 | 18,593,866.28 | 387,630,172.86 |
Cash on hand | 1,315,360,360.49 | 112,652,503.24 | 1,202,707,857.25 | 2,578,635,721.74 | 129,714,961.12 | 2,448,920,760.62 |
Total
Total | 2,413,234,235.44 | 245,479,886.83 | 2,167,754,348.61 | 3,678,496,509.49 | 233,100,134.40 | 3,445,396,375.09 |
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance | ||
Accrual | Other | Switch back or write-off | Other | |||
Materials in stock | 84,791,307.00 | 53,801,807.54 | -152,390.70 | 21,737,180.93 | 116,703,542.91 | |
Goods in process | 18,593,866.28 | 9,140,454.44 | 11,610,480.04 | 16,123,840.68 | ||
Cash on hand | 129,714,961.12 | 41,277,522.00 | -89,942.73 | 58,250,037.15 | 112,652,503.24 | |
Total | 233,100,134.40 | 104,219,783.98 | -242,333.43 | 91,597,698.12 | 245,479,886.83 |
¢Ù Net realizable value of the inventory refers to: During the day-to-day activities, results of the estimated sale price less costs whichare going to happen by estimation till works completed, sales price estimated and relevant taxes.
¢Ú Accrual basis for inventory depreciation reserve:
¢Û Reasons of write-off for inventory falling price reserves:
Item | Reasons of write-off |
Materials in stock | Used for production and the finished goods are realized sales |
Goods in process | Goods in process completed in the Period and corresponding finished goods are realized sales in the Period |
Finished goods | Sales in the Period |
(3) Explanation on capitalization of borrowing costs at ending balance of inventoryNil
(4) Assets completed without settlement from construction contract at period-endNil
9. Other current assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Receivable export tax rebates | 8,308,752.40 | 6,457,803.72 |
VAT refund receivable | 2,799,449.30 | 3,985,115.26 |
Prepaid taxes and VAT retained | 35,320,464.57 | 204,700,549.12 |
Input tax to be deducted and certification | 24,779.13 | 6,274.43 |
Other | 5,772,397.33 | 5,171,179.97 |
Total | 52,225,842.73 | 220,320,922.50 |
Item
Item | Accrual 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 | Accrual basis for inventory impairment provision | Specific basis for recognition |
10. Long-term equity investment
Unit: RMB/CNY
The investedentity
The invested entity | Opening balance (book value) | 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 accrual | Other | ||||
I. Joint venture | |||||||||||
II. Associated enterprise | |||||||||||
Wuxi Weifu Environmental Catalysts. Co., Ltd. | 794,489,840.10 | 71,742,990.25 | 866,232,830.35 | ||||||||
RBCD | 3,340,114,235.45 | 583,991,385.86 | 765,837,710.23 | 3,158,267,911.08 | |||||||
Zhonglian Automobile Electronics Co., Ltd. | 1,378,575,785.77 | 168,241,541.93 | 194,400,000.00 | 1,352,417,327.70 | |||||||
Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. | 46,014,272.27 | 5,377,634.71 | 51,391,906.98 | ||||||||
Changchun Xuyang Weifu Automobile components Technology Co., Ltd. | 10,348,819.93 | -325,008.02 | 10,023,811.91 | ||||||||
Precors GmbH | 5,345,878.98 | -47,224.13 | -87,222.05 | 5,211,432.80 | |||||||
Wuxi Chelian Tianxia Information Technology Co., Ltd. | 143,055,955.62 | -4,365,778.01 | 138,690,177.61 | ||||||||
Subtotal | 5,717,944,788.12 | 824,615,542.59 | 960,237,710.23 | -87,222.05 | 5,582,235,398.43 | ||||||
Total | 5,717,944,788.12 | 824,615,542.59 | 960,237,710.23 | -87,222.05 | 5,582,235,398.43 |
Other explanationExplanation on those holding less than 20% of the voting rights but with significant influence:
(1) Precors GmbH:
Wholly-owned subsidiary of the Company - Borit, holds 8.11% equity of Precors GmbH, Borit appointed a director to Precors GmbH.Though the representative, Borit can participate in the operation policies formulation of Precors GmbH, and thus exercise a significantinfluence over Precors GmbH.
(2) Wuxi Chelian Tianxia Information Technology Co., Ltd. (Hereinafter referred to as "Chelian Tianxia"):
The Company holds 8.8295% equity of Chelian Tianxia, and appointed a director to Chelian Tianxia. Though the representative, theCompany can participate in the operation policies formulation of Chelian Tianxi, and thus exercise a significant influence over ChelianTianxi.
11. Other equity instrument investment
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Wuxi Xidong Science & Technology Industrial Park
Wuxi Xidong Science & Technology Industrial Park | 5,000,000.00 | 5,000,000.00 |
Beijing Zhike Industry Investment Holding Group Co., Ltd. | 75,940,000.00 | 75,940,000.00 |
Rare earth Catalysis Innovation Research Institute (Dongying) Co., Ltd. | 4,108,000.00 | 4,108,000.00 |
Wuxi Xichang Microchip Semi-Conductor | 592,742,690.00 | 200,000,000.00 |
Total | 677,790,690.00 | 285,048,000.00 |
Disclosure of the non-trading equity instrument investment item by item Nil
12. Other non-current financial assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Guolian Securities | 198,981,411.00 | 208,795,178.00 |
Investments in other debt instruments and equity instruments held for more than one year | 1,605,500,000.00 | 1,482,000,000.00 |
Total | 1,804,481,411.00 | 1,690,795,178.00 |
13. Investment real estate
(1) Investment real estate measured by cost
?Applicable ¡õNot applicable
Unit: RMB/CNY
Item | House and Building | Land use right | Construction in progress | Total |
I. original book value | ||||
1.Opening balance | 65,524,052.61 | 65,524,052.61 | ||
2.Current increased | ||||
(1) outsourcing | ||||
(2) Inventory\fixed assets\construction in process transfer-in | ||||
(3) increased by combination | ||||
3.Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Ending balance | 65,524,052.61 | 65,524,052.61 | ||
II. Accumulated depreciation and accumulated amortization | ||||
1.Opening balance | 46,136,306.05 | 46,136,306.05 | ||
2.Current increased | 734,547.24 | 734,547.24 | ||
(1) accrual or amortization | 734,547.24 | 734,547.24 | ||
3.Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Ending balance | 46,870,853.29 | 46,870,853.29 | ||
III. Depreciation reserves | ||||
1.Opening balance | ||||
2.Current increased | ||||
(1) accrual | ||||
3. Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Ending balance |
IV. Book value
IV. Book value | ||||
1.Ending Book value | 18,653,199.32 | 18,653,199.32 | ||
2.Opening Book value | 19,387,746.56 | 19,387,746.56 |
(2) Investment real estate measured at fair value
¡õApplicable?Not applicable
(3) Investment real estate without property certification held
Nil
14. Fix assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Fix assets | 2,954,329,704.27 | 2,932,210,452.51 |
Total | 2,954,329,704.27 | 2,932,210,452.51 |
(1) Fixed assets
Unit: RMB/CNY
Item | House and Building | Machinery equipment | Transportation equipment | Electronic and other equipment | Total |
I. original book value: | |||||
1.Opening balance | 1,570,238,484.44 | 3,540,288,690.19 | 32,772,506.07 | 714,328,321.31 | 5,857,628,002.01 |
2.Current increased | 3,968,861.62 | 150,134,593.58 | 1,775,227.26 | 77,453,375.33 | 233,332,057.79 |
(1) Purchase | 11,421,478.97 | 280,518.40 | 11,701,997.37 | ||
(2) Construction in progress transfer-in | 3,968,861.62 | 138,648,414.76 | 1,775,227.26 | 77,172,856.93 | 221,565,360.57 |
(3) increased by combination | |||||
(4) Financial lease transfer in | 64,699.85 | 64,699.85 | |||
3.Current decreased | 488,813.38 | 55,801,683.90 | 541,608.87 | 25,693,634.93 | 82,525,741.08 |
(1) disposal or scrapping | 488,813.38 | 55,801,683.90 | 541,608.87 | 25,693,634.93 | 82,525,741.08 |
4. Conversion of foreign currency financial statement | -1,570,653.76 | -78,182.36 | -1,648,836.12 | ||
5.Ending balance | 1,573,718,532.68 | 3,633,050,946.11 | 34,006,124.46 | 766,009,879.35 | 6,006,785,482.60 |
II. Accumulated depreciation | |||||
1.Opening balance | 439,825,229.29 | 1,952,082,761.65 | 20,404,183.79 | 422,378,184.50 | 2,834,690,359.23 |
2.Current increased | 23,668,718.78 | 108,449,548.80 | 1,094,042.89 | 69,868,820.45 | 203,081,130.92 |
(1) accrual | 23,668,718.78 | 108,384,848.95 | 1,094,042.89 | 69,868,820.45 | 203,016,431.07 |
(2) Financial lease transfer in | 64,699.85 | 64,699.85 | |||
3.Current decreased | 108,540.49 | 44,673,027.09 | 440,849.62 | 12,955,989.77 | 58,178,406.97 |
(1) disposal or scrapping | 108,540.49 | 44,673,027.09 | 440,849.62 | 12,955,989.77 | 58,178,406.97 |
4. Conversion of foreign currency financial statement | -1,476,090.66 | -282,881.62 | -1,758,972.28 | ||
5.Ending balance | 463,385,407.58 | 2,014,383,192.70 | 21,057,377.06 | 479,008,133.56 | 2,977,834,110.90 |
III. Depreciation reserves | |||||
1.Opening balance | 84,541,933.61 | 73,319.90 | 6,111,936.76 | 90,727,190.27 | |
2.Current increased |
(1) accrual
(1) accrual | |||||
3.Current decreased | 15,865,748.28 | 239,774.56 | 16,105,522.84 | ||
(1) disposal or scrapping | 15,865,748.28 | 239,774.56 | 16,105,522.84 | ||
4.Ending balance | 68,676,185.33 | 73,319.90 | 5,872,162.20 | 74,621,667.43 | |
IV. Book value | |||||
1.Ending Book value | 1,110,333,125.10 | 1,549,991,568.08 | 12,875,427.50 | 281,129,583.59 | 2,954,329,704.27 |
2.Opening Book value | 1,130,413,255.15 | 1,503,663,994.93 | 12,295,002.38 | 285,838,200.05 | 2,932,210,452.51 |
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by operating lease
Nil
(4) Fixed assets without property certification held
Unit: RMB/CNY
Item | Book value | Reasons for without the property certification |
Plant and office building of Weifu Chang¡¯an | 33,030,126.18 | Still in process of relevant property procedures |
(5) Disposal of fixed assets
Nil
15. Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Construction in progress | 500,684,157.53 | 387,429,933.08 |
Total | 500,684,157.53 | 387,429,933.08 |
(1) Construction in progress
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
Technical transformation of parent company | 122,449,644.48 | 122,449,644.48 | 88,688,772.85 | 88,688,772.85 | ||
Lot 103 phase V of the parent company | 112,555,657.23 | 112,555,657.23 | 89,599,174.42 | 89,599,174.42 | ||
WFMS rebuilding of the parent company | 18,686,136.06 | 18,686,136.06 | 12,185,858.74 | 12,185,858.74 | ||
Technical transformation of WFAM | 102,610,702.98 | 102,610,702.98 | 72,318,870.79 | 72,318,870.79 | ||
Technical transformation of WFLD | 10,851,400.11 | 10,851,400.11 | 13,368,288.81 | 13,368,288.81 | ||
Technical transformation of Denmark RID | 28,868,788.17 | 28,868,788.17 | 23,293,601.39 | 23,293,601.39 | ||
Other project | 104,661,828.50 | 104,661,828.50 | 87,975,366.08 | 87,975,366.08 | ||
Total | 500,684,157.53 | 500,684,157.53 | 387,429,933.08 | 387,429,933.08 |
(2) Changes of major projects under construction
Unit: RMB/CNY
Item
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 |
Technical transformation of parent company | 88,688,772.85 | 146,370,931.59 | 112,610,059.96 | 122,449,644.48 | Accumulate funds of the company | |||||||
Lot 103 phase V of the parent company | 89,599,174.42 | 22,956,482.81 | 112,555,657.23 | Accumulate funds of the company | ||||||||
WFMS rebuilding of the parent company | 12,185,858.74 | 6,500,277.32 | 18,686,136.06 | Accumulate funds of the company | ||||||||
Technical transformation of WFAM | 72,318,870.79 | 58,916,712.18 | 28,624,879.99 | 102,610,702.98 | Accumulate funds of the company | |||||||
Technical transformation of WFLD | 13,368,288.81 | 22,804,206.38 | 25,321,095.08 | 10,851,400.11 | Accumulate funds of the company | |||||||
Technical transformation of Denmark RID | 23,293,601.39 | 5,575,186.78 | 28,868,788.17 | Accumulate funds of the company | ||||||||
Total | 299,454,567.00 | 263,123,797.06 | 166,556,035.03 | 396,022,329.03 |
(3) The provision for impairment of construction projects
Nil
(4) Engineering materials
Nil
16. Right-of-use assets
Unit: RMB/CNY
Item | House and Building | Machinery equipment | Total |
I. Original book value: | |||
1.Opening balance | 17,604,684.01 | 21,763,912.85 | 39,368,596.86 |
2.Current increased | 4,586,742.66 | 3,286,519.32 | 7,873,261.98 |
3.Current decreased | 98,126.31 | 98,126.31 | |
4. Conversion of foreign currency financial statement | 164,389.00 | -543,333.15 | -378,944.15 |
5.Ending balance | 22,355,815.67 | 24,408,972.71 | 46,764,788.38 |
II. Accumulated depreciation | |||
1.Opening balance | 4,140,756.41 | 12,079,434.87 | 16,220,191.28 |
2.Current increased | 1,991,793.85 | 133,186.57 | 2,124,980.42 |
(1) Accrual | 1,991,793.85 | 133,186.57 | 2,124,980.42 |
3.Current decreased | 38,678.12 | 38,678.12 |
(1) Disposal
(1) Disposal | |||
(2) Other | 38,678.12 | 38,678.12 | |
4. Conversion of foreign currency financial statement | 35,156.28 | -334,712.08 | -299,555.80 |
5.Ending balance | 6,167,706.54 | 11,839,231.24 | 18,006,937.78 |
III. Depreciation reserves | |||
1.Opening balance | |||
2.Current increased | |||
(1) Accrual | |||
3.Current decreased | |||
(1) Disposal | |||
4.Ending balance | |||
IV. Book value | |||
1.Ending Book value | 16,188,109.13 | 12,569,741.47 | 28,757,850.60 |
2.Opening Book value | 13,463,927.60 | 9,684,477.98 | 23,148,405.58 |
17. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Item | Land use right | Patent | Non-patent technology | Computer software | Trademark and trademark license | Total |
I. original book value | ||||||
1.Opening balance | 381,012,520.44 | 181,889,330.47 | 123,152,207.22 | 41,597,126.47 | 727,651,184.60 | |
2.Current increased | 0.00 | 0.00 | 0.00 | 13,164,056.03 | 0.00 | 13,164,056.03 |
(1) Purchase | 13,164,056.03 | 13,164,056.03 | ||||
(2) internal R&D | ||||||
(3) increased by combination | ||||||
3.Current decreased | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(1) disposal | 0.00 | 0.00 | ||||
4. Conversion of foreign currency financial statement | -4,737,184.37 | -75,126.18 | -4,812,310.55 | |||
5.Ending balance | 381,012,520.44 | 0.00 | 177,152,146.10 | 136,241,137.07 | 41,597,126.47 | 736,002,930.08 |
II. accumulated amortization | ||||||
1.Opening balance | 103,617,738.03 | 64,204,353.94 | 92,880,072.81 | 9,709,000.00 | 270,411,164.78 | |
2.Current increased | 4,182,399.21 | 0.00 | 7,274,384.09 | 10,186,855.50 | 0.00 | 21,643,638.80 |
(1) accrual | 4,182,399.21 | 7,274,384.09 | 10,186,855.50 | 21,643,638.80 | ||
3.Current decreased | ||||||
(1) disposal | ||||||
4. Conversion of foreign currency financial statement | -1,814,061.02 | -63,232.04 | -1,877,293.06 | |||
5.Ending balance | 107,800,137.24 | 0.00 | 69,664,677.01 | 103,003,696.27 | 9,709,000.00 | 290,177,510.52 |
III. Depreciation reserves | ||||||
1.Opening balance | 16,646,900.00 | 16,646,900.00 | ||||
2.Current increased | ||||||
(1) accrual |
3.Current decreased
3.Current decreased | ||||||
(1) disposal | ||||||
4.Ending balance | 16,646,900.00 | 16,646,900.00 | ||||
IV. Book value | ||||||
1.Ending Book value | 273,212,383.20 | 0.00 | 107,487,469.09 | 33,237,440.80 | 15,241,226.47 | 429,178,519.56 |
2.Opening Book value | 277,394,782.41 | 0.00 | 117,684,976.53 | 30,272,134.41 | 15,241,226.47 | 440,593,119.82 |
(2) Land use right without property certification held
Nil
18. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
The invested entity or matters forming goodwill | Opening balance | Current increased | Current decreased | Ending balance | ||
The invested entity or matters forming goodwill | Opening balance | Formed by business combination | Translation of foreign currency statements | Disposal | Ending balance | |
Merged with WFTT | 1,784,086.79 | 1,784,086.79 | ||||
Merged with Borit | 229,470,928.96 | -6,829,069.97 | 222,641,858.99 | |||
Total | 231,255,015.75 | -6,829,069.97 | 224,425,945.78 |
(2) Goodwill depreciation reserves
Other explanation
1) Goodwill formed by the merger of WFTT:
In 2010, the Company controlling and combine WFTT by increasing the capital, the goodwill is the number that combination costgreater than the fair value of identical net assets of WFTT.
2) Goodwill formed by the merger of Borit:
In 2020, the company acquired 100.00% equity of Borit in the form of cash purchase, the goodwill was the part that the cost of themerger was greater than the fair value share of the identifiable net assets of Borit.
19. Long-term deferred expenses
Unit: RMB/CNY
Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
Remodeling costs etc. | 15,304,783.57 | 802,773.19 | 4,160,293.14 | 0.00 | 11,947,263.62 |
Total | 15,304,783.57 | 802,773.19 | 4,160,293.14 | 0.00 | 11,947,263.62 |
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Unrealized profit from insider transactions | 42,228,033.40 | 6,334,205.01 | 65,251,129.55 | 10,531,677.19 |
Bad debt provision
Bad debt provision | 84,662,196.11 | 13,027,934.23 | 87,681,266.17 | 13,383,420.21 |
Inventory depreciation reserve | 237,577,309.80 | 37,278,710.01 | 224,955,223.94 | 37,688,819.01 |
Depreciation reserves of fixed assets | 48,551,677.36 | 7,319,013.57 | 57,218,038.14 | 8,677,481.50 |
Depreciation reserves of intangible assets | 16,646,900.00 | 2,497,035.00 | 16,646,900.00 | 2,497,035.00 |
Deferred income | 279,305,258.43 | 42,180,462.93 | 295,502,674.12 | 44,620,545.44 |
Payable salary, accrued expenses etc. | 1,184,211,558.45 | 180,370,131.32 | 1,236,037,621.62 | 188,472,847.67 |
Depreciation assets, amortization difference | 46,993,667.62 | 7,648,746.44 | 54,047,597.49 | 8,868,412.34 |
Deductible loss of subsidiary | 79,414,078.52 | 17,898,035.16 | 53,658,338.05 | 11,465,129.69 |
Equity incentive | 115,567,627.28 | 17,856,586.29 | 80,742,533.73 | 12,498,678.30 |
Fiscal and tax differences for leasing business | 378,997.84 | 72,554.36 | 378,997.84 | 72,554.36 |
Total | 2,135,537,304.81 | 332,483,414.32 | 2,172,120,320.65 | 338,776,600.71 |
(2) Deferred income tax liabilities that are not offset
Unit: RMB/CNY
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 | 10,426,145.95 | 1,563,921.87 | 10,660,027.75 | 1,599,004.14 |
The difference between the fair value and taxation basis of IRD assets in a merger not under the same control | 62,262,316.74 | 13,697,709.68 | 68,854,748.78 | 15,148,044.73 |
The difference between the fair value and taxation basis of Borit assets in a merger not under the same control | 22,049,472.63 | 5,512,368.16 | 25,246,551.70 | 6,311,637.91 |
Change of fair value of transaction financial asset | 243,001,104.43 | 36,494,552.16 | 318,337,329.74 | 47,794,985.96 |
Accelerated depreciation of fixed assets | 312,152,327.81 | 48,772,268.58 | 294,934,456.08 | 48,772,268.60 |
Total | 649,891,367.56 | 106,040,820.45 | 718,033,114.05 | 119,625,941.34 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
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 | -85,235,107.64 | 247,248,306.68 | -96,528,406.14 | 242,248,194.57 |
Deferred income tax liabilities | -85,235,107.64 | 20,805,712.81 | -96,528,406.14 | 23,097,535.20 |
(4) Details of unrecognized deferred income tax assets
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Bad debt reserve | 210,616.89 | 216,982.72 |
Inventory depreciation reserve | 7,902,577.03 | 8,144,910.46 |
Loss from subsidiary | 307,204,498.81 | 279,247,744.04 |
Depreciation reserves of fixed assets | 26,069,990.07 | 33,509,152.13 |
Other equity instrument investment | 13,600,000.00 | 13,600,000.00 |
Equity incentive
Equity incentive | 3,299,059.19 | 2,304,871.81 |
Total | 358,286,741.99 | 337,023,661.16 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Maturity year | Ending amount | Opening amount | Note |
2022 | 3,781,066.93 | Subsidiaries have operating losses | |
2023 | 485,532.04 | 1,171,973.53 | Subsidiaries have operating losses |
2024 | 18,520,699.71 | 18,520,699.71 | Subsidiaries have operating losses |
2025 | 12,151,503.80 | 12,151,503.80 | Subsidiaries have operating losses |
2026 | 22,596,818.84 | 22,596,818.84 | Subsidiaries have operating losses |
2027 | 8,082,125.62 | Subsidiaries have operating losses | |
No expiration period | 245,367,818.80 | 221,025,681.23 | Overseas subsidiaries have operating losses |
Total | 307,204,498.81 | 279,247,744.04 |
21. Other non-current assets
Unit: RMB/CNY
Item | Ending balance | Opening balance | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Engineering equipment paid in advance | 417,664,761.50 | 417,664,761.50 | 267,941,354.57 | 267,941,354.57 | ||
Total | 417,664,761.50 | 0.00 | 417,664,761.50 | 267,941,354.57 | 0.00 | 267,941,354.57 |
22. Short-term loans
(1) Category of short-term borrowings
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Guaranteed Loan | 72,197,000.00 | |
Credit loan | 4,084,272,713.42 | 1,264,241,086.57 |
Bill financing | 100,000,000.00 | 100,000,000.00 |
Accrued interest | 3,410,087.52 | 1,520,119.98 |
Total | 4,187,682,800.94 | 1,437,958,206.55 |
(2) Overdue short-term loans without payment
Nil
23. Note payable
Unit: RMB/CNY
Category | Ending balance | Opening balance |
Bank acceptance bill | 1,603,408,581.52 | 1,760,032,216.30 |
Total | 1,603,408,581.52 | 1,760,032,216.30 |
Notes expired at year-end without paid was 0.00 Yuan.
Other instructions: The deposit paid for issuing the above bank acceptance bill was 41882720.34 yuan, and thepledged bills receivable was 478145099.57 yuan.
24. Account payable
(1) Account payable
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
Within 1 year | 4,175,265,277.10 | 3,066,299,727.36 |
1-2 years | 35,697,326.45 | 64,962,570.18 |
2-3 years | 15,537,530.83 | 52,067,026.49 |
Over three years | 18,494,438.39 | 23,324,378.56 |
Total | 4,244,994,572.77 | 3,206,653,702.59 |
(2) Important account payable with account age over one year
Nil
25. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Within 1 year | 6,950,948.17 | 2,854,518.96 |
Total | 6,950,948.17 | 2,854,518.96 |
(2) Important accounts received in advance with account age over one yearNil
26. Contractual liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Within 1 year | 83,891,206.70 | 132,406,102.56 |
1-2 years | 6,993,861.44 | 2,681,086.39 |
2-3 years | 980,715.77 | 132,196.85 |
Over three years | 1,238,881.37 | 1,208,250.59 |
Total | 93,104,665.28 | 136,427,636.39 |
27. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
I. Short-term compensation | 207,822,331.67 | 563,755,117.95 | 629,587,546.74 | 141,989,902.88 |
II. Post-employment welfare- defined | 20,279,307.31 | 77,575,291.02 | 77,050,211.90 | 20,804,386.43 |
contribution plans
contribution plans | ||||
III. Dismissed welfare | 1,245,327.09 | 65,317.00 | 793,904.69 | 516,739.40 |
IV. Other welfare due within one year | 93,880,000.00 | 28,789,384.41 | 65,090,615.59 | |
V. Other short-term welfare-Housing subsidies, employee benefits and welfare funds | 16,661,536.63 | 50,202.00 | 676,827.00 | 16,034,911.63 |
Total | 339,888,502.70 | 641,445,927.97 | 736,897,874.74 | 244,436,555.93 |
(2) Short-term compensation
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Wages, bonuses, allowances and subsidies | 197,176,934.90 | 427,946,015.89 | 494,611,467.55 | 130,511,483.24 |
2. Welfare for workers and staff | 72,058.92 | 53,435,111.58 | 53,196,916.36 | 310,254.14 |
3. Social insurance | 192,691.73 | 35,139,421.94 | 35,127,823.25 | 204,290.42 |
Including: Medical insurance | 172,605.50 | 28,881,038.83 | 28,872,696.66 | 180,947.67 |
Work injury insurance | 16,653.30 | 3,352,037.11 | 3,350,742.65 | 17,947.76 |
Maternity insurance | 3,432.93 | 2,906,346.00 | 2,904,383.94 | 5,394.99 |
4. Housing accumulation fund | 656,874.00 | 39,725,051.00 | 39,655,442.00 | 726,483.00 |
5. Labor union expenditure and personnel education expense | 9,611,229.93 | 6,924,420.00 | 6,405,696.56 | 10,129,953.37 |
6.Other short-term salary-social security | 112,542.19 | 585,097.54 | 590,201.02 | 107,438.71 |
Total | 207,822,331.67 | 563,755,117.95 | 629,587,546.74 | 141,989,902.88 |
(3) Defined contribution plans
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
1. Basic endowment insurance | 416,445.06 | 60,492,393.14 | 60,534,131.19 | 374,707.01 |
2. Unemployment insurance | 25,533.44 | 2,004,087.85 | 2,015,564.79 | 14,056.50 |
3. Enterprise annuity | 19,837,328.81 | 15,078,810.03 | 14,500,515.92 | 20,415,622.92 |
Total | 20,279,307.31 | 77,575,291.02 | 77,050,211.90 | 20,804,386.43 |
28. Taxes payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Value-added tax | 41,776,505.38 | 24,533,584.80 |
Corporation income tax | 57,082,502.91 | 2,317,331.81 |
Individual income tax | 510,802.49 | 3,528,037.22 |
City maintaining & construction tax | 2,937,740.31 | 1,750,188.23 |
Educational surtax | 2,099,999.44 | 1,250,134.44 |
Other (including stamp tax and local funds) | 6,423,508.34 | 6,726,372.38 |
Total | 110,831,058.87 | 40,105,648.88 |
29. Other account payable
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
Interest payable | 5,621.94 | 6,184.14 |
Dividend payable | 165,975,264.00 | 25,671,100.00 |
Other accounts payable | 302,282,740.42 | 334,228,033.32 |
Total | 468,263,626.36 | 359,905,317.46 |
(1) Interest payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Other | 5,621.94 | 6,184.14 |
Total | 5,621.94 | 6,184.14 |
Major overdue interest: nil
(2) Dividend payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Common stock dividend | 165,975,264.00 | 25,671,100.00 |
Total | 165,975,264.00 | 25,671,100.00 |
Other explanation, including important dividends payable that have not been paid for more than 1 year, and the reasons for non-payment should be disclosed: Nil
(3) Other account payable
1) Classification of other accounts payable according to nature of account
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Deposit and margin | 27,357,681.81 | 24,601,774.89 |
Social insurance and reserves funds that withholding | 1,504,143.84 | 1,695,074.09 |
Intercourse funds of unit | 30,982,145.98 | 33,562,145.98 |
Restricted Share repurchases obligations | 238,302,620.00 | 269,101,020.00 |
Other | 4,136,148.79 | 5,268,018.36 |
Total | 302,282,740.42 | 334,228,033.32 |
2) Significant other payable with over one year age
Unit: RMB/CNY
Item | Ending balance | Reasons for non-repayment or carry-over |
Nanjing Jidian Industrial Group Co., Ltd. | 4,500,000.00 | Intercourse funds |
Restricted share repurchase obligation | 238,302,620.00 | Restricted stock repurchase business |
Total | 242,802,620.00 |
30. Non-current liabilities due within one year
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
Long-term borrowings due within one year | 27,101,755.70 | 27,744,527.80 |
Lease payments due within one year | 4,571,288.34 | 6,318,273.66 |
Interest payable | 23,516.67 | 25,972.22 |
Total | 31,696,560.71 | 34,088,773.68 |
31. Other current liabilities
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Rebate payable | 160,130,711.03 | 198,936,922.68 |
Pending sales tax | 9,022,910.40 | 14,032,348.87 |
Total | 169,153,621.43 | 212,969,271.55 |
32. Long-term loans
(1) Category of Long-term loans
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Guaranteed loan | 200,000,000.00 | |
Total | 200,000,000.00 |
33. Lease liability
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Lease Payments | 21,504,518.33 | 15,795,469.25 |
Total | 21,504,518.33 | 15,795,469.25 |
34. Long-term account payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Long-term account payable | 13,750,000.00 | 13,750,000.00 |
Special accounts payable | 18,265,082.11 | 18,265,082.11 |
Total | 32,015,082.11 | 32,015,082.11 |
(1) Long-term account payable listed by nature
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2007) | 1,230,000.00 | 1,230,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2008) | 2,750,000.00 | 2,750,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2009) | 1,030,000.00 | 1,030,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2010) | 960,000.00 | 960,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2011) | 5,040,000.00 | 5,040,000.00 |
Hi-tech Branch of Nanjing Finance Bureau (note ¢Ú) Financial support funds (2013) | 2,740,000.00 | 2,740,000.00 |
Total | 13,750,000.00 | 13,750,000.00 |
Other explanation:
Note ¢Ú: 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 17 September 2007 to 17 September2022. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ¢Ú: 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 10 November 2008 to 10 November2023. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ¢Ú: 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 27 October 2009 to 27 October 2024.Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ¢Ú: 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 27 December 2010 to 27 December2025. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ¢Ú: 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 28 December 2011 to 28 December2026. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.Note ¢Ú: 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 18 December 2013 to 18 December2028. Provided that the operation period in the zone is less than 15 years, financial supporting capital will be reimbursed.
(2) Special accounts payable
Unit: RMB/CNY
Item
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 explanation:
In 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 total arecompensate, including operation losses from lessee 1.4416 million yuan in total. The above compensation was received in last periodand is making up for the losses from lessee, and the above lands and property have not been collected up to 30 June 2022.
35. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
1. Termination benefits | 4,829,589.69 | 4,829,589.69 |
2. Other long-term benefits | 103,482,333.50 | 103,482,333.50 |
Total | 108,311,923.19 | 108,311,923.19 |
(2) Changes in defined benefit plans
Nil
36. Deferred income
Unit: RMB/CNY
Item
Item | Opening balance | Current increased | Current decreased | Ending balance | Cause of formation |
Government grants | 298,052,867.56 | 685,099.46 | 18,721,634.94 | 280,016,332.08 | |
Total | 298,052,867.56 | 685,099.46 | 18,721,634.94 | 280,016,332.08 |
Item with government grants involved:
Unit: RMB/CNY
Item | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned into other income in the period | Cost reduction in the period | Other changes | Ending balance | Assets related/Income related |
Industrialization project for injection VE pump system with electronically controlled high pressure for less-emission diesel used | 721,000.26 | 721,000.26 | 0.00 | Assets related/Income related | ||||
Appropriation on reforming of production line technology and R&D ability of common rail system for diesel by distributive high-voltage | 6,318,348.62 | 390,825.70 | 5,927,522.92 | Assets related | ||||
Fund of industry upgrade (2013) | 60,520,000.00 | 60,520,000.00 | Income related | |||||
R&D and industrialization of the high-pressure variable pump of the common rail system of diesel engine for automobile | 3,817,474.67 | 555,205.50 | 3,262,269.17 | Assets related | ||||
Research institute of motor vehicle exhaust aftertreatment technology | 648,660.17 | 262,398.42 | 386,261.75 | 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 | 83,134,428.94 | 9,245,732.76 | 73,888,696.18 | 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 | 5,057,667.33 | 635,276.68 | 4,422,390.65 | Assets related |
Implementation of thevariable cross-sectionturbocharger fordiesel engine
Implementation of the variable cross-section turbocharger for diesel engine | 5,882,788.71 | 777,352.10 | 5,105,436.61 | Assets related | ||||
Demonstration project for intelligent manufacturing | 652,381.50 | 97,052.14 | 555,329.36 | Assets related | ||||
The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019 | 3,446,350.12 | 580,448.74 | 2,865,901.38 | Assets related | ||||
Municipal technological reform fund allocation in 2020 | 4,143,406.07 | 302,165.36 | 3,841,240.71 | Assets related | ||||
Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone | 4,450,869.59 | 319,883.18 | 4,130,986.41 | Assets related | ||||
The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021 | 13,500,000.00 | 13,500,000.00 | Assets related | |||||
Other | 28,928,491.58 | 732,262.88 | 4,834,294.10 | -47,163.42 | 24,779,296.94 | Assets related/Income related | ||
Total | 298,052,867.56 | 732,262.88 | 0.00 | 18,721,634.94 | 0.00 | -47,163.42 | 280,016,332.08 |
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in September2009, WFJN signed ¡°Project Contract of Technology Outcome Transferring Special Capital in Jiangsu Province¡± with NanjingTechnical Bureau, according to which WFJN received appropriation 6.35 million Yuan in 2009, 4.775 million Yuan received in 2010and 0.875 million Yuan received in 2011. According to the contract, the attendance date of this project was: from October 2009 toMarch 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed assets investment which arebelongs to the government grand with assets/income concerned. In 2013, accepted by the science & technology agency of JiangsuProvince, and 4,789,997.04 Yuan with income related was reckoned into current operation revenue directly; the 7,210,002.96 Yuanwith assets related was amortized during the predicted service period of the assets, and 721,000.26 Yuan amortized in the Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use andproduction line technological transformation project: according to XCJ No. [2010] 59, the Company has received special funds of 7.1million yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company¡¯s research and developmentability of distributive high-pressure common rail system for diesel engine use and production line technological transformation project;this appropriation belongs to government grants related to assets, amount of 390,825.70 yuan was reversed based on the depreciationschedule of the related assets during the period.
(3) 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.
(4) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: theCompany received appropriated for the project in 2013 with 8.05 million yuan in line with documents of Xi Ke Ji [2013] No.186, XiKe Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104, Xi Cai Gong Mao [2013] No.138, Xi Ke Ji [2014] No.125, Xi Cai Gong Mao[2014] No.58, Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. Received 3 million yuan in 2014 and 0.45 million yuan
in 2015; and belongs to government grant with assets concerned, and shall be amortized according to the depreciation process, amountof 555,205.50 yuan amortizes in the year.
(5) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary WFLD has 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 has been approved by Wuxi Huishan Science andTechnology Bureau and Wuxi Science and Technology Bureau in 2012, and the company has received appropriation of 2.4 millionyuan in 2012, and received appropriation of 1.6 million yuan in 2013. This appropriation belongs to government grants related to assetsand will be amortized according to the depreciation process, amount of 262,398.42 yuan amortizes in the year.
(6) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and Xi Xin Guan Cai Fa[2014] No.143, the Company received funds of 36.831 million yuan appropriated for industry upgrading in 2014.
(7) New-built assets compensation after the removal of parent company: policy relocation compensation received by the Company,and will be amortized according to the depreciation of new-built assets, amount of 9,245,732.76 yuan amortizes in the year.
(8) 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.
(9) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi Jing XinZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million yuan for the guiding capital of technical reform(1st batch) from Wuxi for year of 2016, and belongs to government grant with assets concerned, and shall be amortized according tothe depreciation process, amount of 635,276.68 yuan amortize in the year.
(10) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]NO.623 and ¡°Strong Industrial Base Project Contract for year of 2016¡±, subsidiary WFTT received a specific subsidy of 16.97 millionyuan (760,000 yuan received in the period), the fund supporting strong industrial base project (made-in-China 2025) of central industrialtransformation and upgrading 2016 from Ministry of Industry and Information Technology; and belongs to government grant withassets concerned, and shall be amortized according to the depreciation process, amount of 777,352.10 yuan amortize in the year.
(11) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent Manufacturing ModelProject in Huishan District in 2016 (HJXF[2016]No.36), a fiscal subsidy of 3,000,000 yuan was granted by relevant governmentauthority in Huishan district to our subsidiary WFLD in 2017 to be utilized for transformation and upgrade of WFLD¡¯s intelligentmanufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the depreciationprogress of the assets. Amortization for the year amounts to 97,052.14 yuan.
(12) The 2
ndbatch 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-TechnologyNew Factory Internet Construction" projects, and belonged to government grants related to assets. and shall be amortized according tothe depreciation process, amount of 580,448.74 yuan amortize in the year.
(13) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16, the Company received 4.77 millionyuan of municipal technological transformation fund project allocation in 2020, which was related to key technological transformationprojects and belonged to government grants related to assets. and shall be amortized according to the depreciation process, amount of302,165.36 yuan amortize in the year.
(14) 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, 0.7 million yuan received in the Period, this grant wasrelated to the intelligent transformation project and belonged to the government grants related to assets. and shall be amortizedaccording to the depreciation process, amount of 319,883.18 yuan amortize in the year.
(15) The 3
rd
batch of provincial special funds for industry transformation of industrial and information in 2021: according to the SCGM[2021] No.92, the government grant 13.5 million yuan received in 2021 was for the research, development and industrialization ofmembrane electrodes for high-performance automotive proton exchange membrane fuel cells, which was an assets related governmentgrants.
37. Share capital
Unit: RMB/CNY
Opening balance | Change during the period (+, -) | Ending balance | |||||
New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
Total shares | 1,008,659,570.00 | 1,008,659,570.00 |
38. Capital reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Capital premium (Share capital premium) | 3,238,990,188.72 | 3,238,990,188.72 | ||
Other Capital reserve | 132,353,984.10 | 34,733,141.01 | 167,087,125.11 | |
Total | 3,371,344,172.82 | 34,733,141.01 | 3,406,077,313.83 |
Other explanation, including changes in the period and reasons for changes;Other capital reserves have 34,733,141.01 yuan increased in the current period, which is the net amount after deducting the35,819,280.93 yuan amount attributable to shareholders from share-based payment fee 1,086,139.92 yuan, settled by equity.
39. Treasury stock
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Share repurchases | 1,148,777.74 | 100,001,057.07 | 101,149,834.81 | |
Repurchase obligation of restricted stock incentive plan | 269,101,020.00 | 30,798,400.00 | 238,302,620.00 | |
Total | 270,249,797.74 | 100,001,057.07 | 30,798,400.00 | 339,452,454.81 |
Other explanations, including changes in the current period and explanations of the reasons for the changes:
Share repurchase: shares increased due to the repurchase of 4,982,800.00 shares by way of centralized bidding in 2022Repurchase obligation of restricted stock incentive plan£ºThe decrease of 30798400.00 yuan in the current period is the cashdividend received by the restricted stock incentive object in the current period.
40. Other comprehensive income
Unit: RMB/CNY
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. Othercomprehensiveincome thatcannot bereclassified toprofit or loss
I. Other comprehensive income that cannot be reclassified to profit or loss | 16,008.80 | 16,008.80 | ||||||
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 | -36,762,353.40 | -12,679,652.16 | -12,679,652.16 | -49,442,005.56 | ||||
Conversion difference of foreign currency financial statement | -36,762,353.40 | -12,679,652.16 | -12,679,652.16 | -49,442,005.56 | ||||
Total other comprehensive income | -36,746,344.60 | -12,679,652.16 | -12,679,652.16 | -49,425,996.76 |
Other explanation, including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flowhedge profit/loss: nil
41. Reasonable reserve
Unit: RMB/CNY
Item | Opening balance | Current increased | Current decreased | Ending balance |
Safety production costs | 712,215.31 | 13,239,465.25 | 12,236,215.31 | 1,715,465.25 |
Total | 712,215.31 | 13,239,465.25 | 12,236,215.31 | 1,715,465.25 |
Other explanation, including changes and reasons for changes:
(1) Instructions for the withdrawing of special reserves (safe production cost): According to the CQ [2012] No. 16 - 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 accrual by the Company in line with regulationsand the parts enjoy by shareholders of the Company in safety production costs accrual by subsidiary in line with regulations.
42. Surplus reserve
Unit: RMB/CNY
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 |
43. Retained profit
Unit: RMB/CNY
Item | Current period | Last period |
Retained profits at the end of last year before adjustment
Retained profits at the end of last year before adjustment | 14,814,787,377.86 | 13,756,102,424.62 |
Retained profits at the beginning of the year after adjustment | 14,814,787,377.86 | 13,756,102,424.62 |
Add: The net profits belong to owners of patent company of this period | 1,232,762,710.95 | 2,575,371,419.80 |
Less: cash dividends payable | 1,609,059,668.80 | 1,513,341,439.50 |
Less: Withdraw employee rewards and welfare funds | 4,081,359.92 | |
Add: Net effect of disposal other equity instrument investment | 736,332.86 | |
Retained profit at period-end | 14,438,490,420.01 | 14,814,787,377.86 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retainedprofits at the beginning of the period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 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
44. Operating income and cost
Unit: RMB/CNY
Item | Current period | Last Period | ||
Income | Cost | Income | Cost | |
Main operating | 7,112,804,273.14 | 5,858,547,460.17 | 8,767,778,890.21 | 7,264,238,382.73 |
Other business | 209,031,087.84 | 166,024,282.54 | 269,912,866.03 | 233,678,774.34 |
Total | 7,321,835,360.98 | 6,024,571,742.71 | 9,037,691,756.24 | 7,497,917,157.07 |
Information on the top five items of revenue recognized during the reporting period:
Unit: RMB/CNY
Serial | Name | Income amount |
1 | RBCD | 1,633,269,280.49 |
2 | Customer 1 | 777,256,393.13 |
3 | Robert Bosch Company | 724,668,201.55 |
4 | Customer 2 | 678,105,449.94 |
5 | Customer 3 | 269,171,662.59 |
45. Operating tax and extras
Unit: RMB/CNY
Item | Current period | Last Period |
City maintaining & construction tax | 8,634,987.02 | 14,341,221.75 |
Educational surtax | 6,170,777.25 | 10,225,750.57 |
Property tax | 8,897,091.90 | 8,796,684.97 |
Land use tax | 2,253,305.65 | 2,254,956.27 |
Vehicle use tax | 3,985.52 | 4,723.44 |
Stamp duty | 2,394,141.59 | 2,318,539.73 |
Other taxes | 523,132.85 | 267,617.59 |
Total | 28,877,421.78 | 38,209,494.32 |
46. Sales expenses
Unit: RMB/CNY
Item
Item | Current period | Last Period |
Salary and fringe benefit | 24,952,862.28 | 26,304,864.83 |
Consumption of office materials and business travel charge | 3,302,587.07 | 4,474,074.11 |
Warehouse charge | 1,044,900.83 | 3,451,305.60 |
Three guarantees and quality cost | 30,734,960.85 | 41,751,346.64 |
Business entertainment fee | 9,087,067.46 | 12,819,753.95 |
Other | 9,898,213.94 | 22,392,270.43 |
Total | 79,020,592.43 | 111,193,615.56 |
47. Administration expenses
Unit: RMB/CNY
Item | Current period | Last Period |
Salary and fringe benefit | 151,774,582.74 | 150,875,422.64 |
Depreciation charger and long-term assets amortization | 37,588,034.10 | 35,267,896.09 |
Consumption of office materials and business travel charge | 6,085,675.94 | 7,618,286.05 |
Share-based payment | 22,799,516.92 | 24,256,881.94 |
Other | 58,964,445.09 | 48,207,891.60 |
Total | 277,212,254.79 | 266,226,378.32 |
48. R&D expenses
Unit: RMB/CNY
Item | Current period | Last Period |
Technological development expenses | 289,631,376.50 | 249,583,255.99 |
Total | 289,631,376.50 | 249,583,255.99 |
49. Financial expenses
Unit: RMB/CNY
Item | Current period | Last Period |
Interest expenses | 34,275,262.65 | 14,244,003.27 |
Note discount interest expenses | 3,052,594.14 | 13,128,344.93 |
Less: interest income | 13,927,929.36 | 16,673,615.70 |
Gains/losses from exchange | 4,316,196.05 | 928,280.82 |
Handling charges | 2,057,941.09 | 4,308,059.74 |
Total | 29,774,064.57 | 15,935,073.06 |
50. Other income
Unit: RMB/CNY
Sources of income generated | Current period | Last Period |
Government grants with routine operation activity concerned | 26,095,621.93 | 23,433,211.68 |
Total | 26,095,621.93 | 23,433,211.68 |
51. Investment income
Unit: RMB/CNY
Item
Item | Current period | Last Period |
Income of long-term equity investment calculated based on equity | 823,400,731.10 | 962,736,510.68 |
Investment income from holding financial assets available for sales | 964,645.90 | 3,468,760.80 |
Investment income of financial products | 105,107,324.41 | 140,176,231.37 |
Other | -680,357.44 | -609,970.51 |
Total | 928,792,343.97 | 1,105,771,532.34 |
52. Income from change of fair value
Unit: RMB/CNY
Sources | Current period | Last Period |
Changes in the fair value of wealth management products | 3,290,951.54 | 5,597,561.64 |
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 | -77,723,879.68 | -91,729,334.10 |
Total | -74,432,928.14 | -86,131,772.46 |
53. Credit impairment loss
Unit: RMB/CNY
Item | Current period | Last Period |
Bad debt loss | 2,083,427.81 | 6,750,336.12 |
Total | 2,083,427.81 | 6,750,336.12 |
54. Assets impairment loss
Unit: RMB/CNY
Item | Current period | Last Period |
Loss of inventory falling price and loss of contract performance cost impairment | -104,219,783.98 | -103,997,387.44 |
Total | -104,219,783.98 | -103,997,387.44 |
55. Income from assets disposal
Unit: RMB/CNY
Sources | Current period | Last Period |
Income from disposal of non-current assets | 3,597,231.29 | 3,076,178.86 |
Losses from disposal of non-current assets | -1,706,951.34 | -149,592.04 |
Total | 1,890,279.95 | 2,926,586.82 |
56. Non-operating income
Unit: RMB/CNY
Item
Item | Current period | Last Period | Amount reckoned into current non-recurring gains/losses |
Other | 218,285.29 | 488,184.66 | 218,285.29 |
Total | 218,285.29 | 488,184.66 | 218,285.29 |
Government subsidies included in the current profit and loss: nil
57. Non-operating expense
Unit: RMB/CNY
Item | Current period | Last Period | Amount reckoned into current non-recurring gains/losses |
Donation | 160,000.00 | ||
Total non-current asset retirement losses | 2,175,378.87 | 625,271.19 | 2,175,378.87 |
Including: loss of fixed assets scrap | 2,175,378.87 | 625,271.19 | 2,175,378.87 |
Other | 21,187.00 | 66,356.11 | 21,187.00 |
Total | 2,196,565.87 | 851,627.30 | 2,196,565.87 |
58. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
Item | Current period | Last Period |
Payable tax in current period | 106,918,042.74 | 248,833,342.25 |
Adjusted the previous income tax | 281,934.62 | 1,167,902.15 |
Increase/decrease of deferred income tax assets | 6,279,057.80 | -131,973,066.28 |
Increase/decrease of deferred income tax liability | -12,925,247.95 | -55,516.90 |
Total | 100,553,787.21 | 117,972,661.22 |
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item | Current period |
Total profit | 1,370,978,589.16 |
Income tax measured by statutory/applicable tax rate | 205,646,788.37 |
Impact by different tax rate applied by subsidies | 13,053,639.86 |
Adjusted the previous income tax | 281,934.62 |
Impact by non-taxable revenue | -112,982,994.62 |
Impact on cost, expenses and losses that unable to deducted
Impact on cost, expenses and losses that unable to deducted | -9,390,248.84 |
Impact by the deductible losses of the un-recognized previous deferred income tax | -6,429,812.52 |
The deductible temporary differences or deductible losses of the un-recognized deferred income tax assets in the Period | 5,235,274.07 |
Other | 5,139,206.27 |
Income tax expense | 100,553,787.21 |
59. Other comprehensive income
See Note VII. 40 ¡°Other comprehensive income¡±
60. Items of ash flow statement
(1) Other cash received in relation to operation activities
Unit: RMB/CNY
Item | Current period | Last Period |
Interest income | 13,927,929.36 | 16,673,615.70 |
Government grants | 8,106,249.87 | 6,670,613.29 |
Other | 404,502.49 | 493,488.03 |
Total | 22,438,681.72 | 23,837,717.02 |
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
Item | Current period | Last Period |
Cash cost | 254,434,197.77 | 250,964,650.29 |
Other | 18,468,018.35 | 9,252,217.76 |
Total | 272,902,216.12 | 260,216,868.05 |
(3) Cash received from other investment activities
Unit: RMB/CNY
Item | Current period | Last Period |
Borit acquisition money returned | 1,108,314.69 | |
Total | 1,108,314.69 |
(4) Cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
Nil
(6) Cash paid related with financing activities
Unit: RMB/CNY
Item | Current period | Last Period |
Loans of Wuxi Industry Group are paid | 5,470,000.00 |
by WFLD
by WFLD | ||
National debt paid transfer to loans | 345,194.00 | |
Lease payments | 865,486.76 | 1,104,682.01 |
Share repurchase | 100,001,057.07 | |
Total | 100,866,543.83 | 6,919,876.01 |
61. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information | Current period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | ||
Net profit | 1,270,424,801.95 | 1,689,043,185.12 |
Add: Assets impairment provision | 102,136,356.17 | 97,247,051.32 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 203,750,978.31 | 188,585,414.05 |
Depreciation of right-of-use assets | 2,124,980.42 | 3,246,652.07 |
Amortization of intangible assets | 21,643,638.80 | 22,053,152.82 |
Amortization of long-term deferred expenses | 4,160,293.14 | 10,464,905.27 |
Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with ¡°-¡±) | -1,890,279.95 | -2,926,586.82 |
Losses on scrapping of fixed assets (gain is listed with ¡°-¡±) | 2,175,378.87 | 625,271.19 |
Gain/loss of fair value changes (gain is listed with ¡°-¡±) | 74,432,928.14 | 86,131,772.46 |
Financial expenses (gain is listed with ¡°-¡±) | 36,972,909.58 | 14,026,658.93 |
Investment loss (gain is listed with ¡°-¡±) | -929,472,701.41 | -1,105,771,532.34 |
Decrease of deferred income tax asset ((increase is listed with ¡°-¡±) | 6,279,057.80 | -134,106,651.78 |
Increase of deferred income tax liability (decrease is listed with ¡°-¡±) | -12,925,247.95 | -2,907,134.81 |
Decrease of inventory (increase is listed with ¡°-¡±) | 1,265,262,274.11 | 622,604,921.62 |
Decrease of operating receivable accounts (increase is listed with ¡°-¡±) | -5,235,236,937.97 | -44,866,280.95 |
Increase of operating payable accounts (decrease is listed with ¡°-¡±) | 659,261,306.91 | -1,402,007,014.29 |
Other | 36,918,218.19 | 38,747,825.31 |
Net cash flows arising from operating activities | -2,493,982,044.89 | 80,191,609.17 |
2. Material investment and financing not involved in cash flow | ||
Conversion of debt into capital | ||
Switching Company bonds due within one year | ||
financing lease of fixed assets | ||
3. Net change of cash and cash equivalents: | ||
Balance of cash at period end | 1,490,785,302.80 | 1,476,008,228.28 |
Less: Balance of cash equivalent at period-begin | 1,094,018,936.73 | 944,946,018.70 |
Add: Balance at period-end of cash equivalents | ||
Less: Balance at period-begin of cash equivalents | ||
Net increase of cash and cash equivalents | 396,766,366.07 | 531,062,209.58 |
(2) Net cash payment for the acquisition of a subsidiary in the period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance |
I. Cash | 1,490,785,302.80 | 1,094,018,936.73 |
Including: Cash on hand | 97,884.43 | 150,438.79 |
Bank deposit available for payment at any time | 1,490,687,418.37 | 1,093,868,497.94 |
III. Balance of cash and cash equivalents at the period-end | 1,490,785,302.80 | 1,094,018,936.73 |
Other explanation:
The difference between bank deposits available for payment at any time and the bank deposits in Note VII. 1 "Monetary Funds" isthe company's fixed deposits in the bank.
62. Note of the changes of owners¡¯ equity
Explain the items and amount at period-end adjusted for ¡°Other¡± at end of the last year: nil
63. Assets with ownership or use right restricted
Unit: RMB/CNY
Item | Book value at period-end | Restriction reason |
Monetary fund | 41,882,720.34 | Cash deposit paid for bank acceptance |
Note receivable | 335,966,479.97 | Notes pledge for bank acceptance |
Monetary fund | 188,440.00 | Cash deposit for Mastercard |
Monetary fund | 4,185,316.40 | Court freeze |
Account receivable financing | 142,178,619.60 | Notes pledge for bank acceptance |
Trading financial asset | 188,795,623.32 | In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of Guangdong Shenzhen Intermediate People's Court, the property with the value of 217 million yuan under the name of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co., Ltd. (Hereinafter referred to as Hejun Company) was frozen. As of the end of the reporting period, 4.71 million shares of Miracle Automation and 11,739,102 shares of SDEC held by the Company were frozen. |
Total | 713,197,199.63 |
64. Item of foreign currency
(1) Item of foreign currency
Unit: RMB/CNY
Item | Closing balance of foreign currency | Rate of conversion | Ending RMB balance converted |
Monetary fund | |||
Including: USD | 6,306,874.16 | 6.7114 | 42,327,959.18 |
EUR
EUR | 20,343,256.77 | 7.0084 | 142,573,634.99 |
HKD | 16,555,587.57 | 0.8552 | 14,158,338.49 |
JPY | 361,309,032.00 | 0.049136 | 17,753,280.60 |
DKK | 5,875,093.79 | 0.9422 | 5,535,513.37 |
Account receivable | |||
Including: USD | 5,703,570.03 | 6.7114 | 38,278,939.90 |
EUR | 1,123,220.09 | 7.0084 | 7,871,975.68 |
JPY | 7,091,196.00 | 0.049136 | 348,433.01 |
DKK | 19,264,105.05 | 0.9422 | 18,150,639.78 |
Long-term loans | |||
Including: USD | |||
EUR | |||
HKD | |||
Other account receivables | |||
Including: DKK | 3,183,888.87 | 0.9422 | 2,999,860.09 |
Short-term loans | |||
Including: USD | 1,106,598.36 | 6.7114 | 7,426,824.23 |
EUR | 27,373,707.15 | 7.0084 | 191,845,889.19 |
Account payable | |||
Including: USD | 770,313.72 | 6.7114 | 5,169,883.50 |
EUR | 2,403,640.58 | 7.0084 | 16,845,674.64 |
JPY | 24,899,918.00 | 0.049136 | 1,223,482.37 |
CHF | 209,442.70 | 7.0299 | 1,472,361.24 |
DKK | 12,537,073.02 | 0.9422 | 11,812,430.20 |
GBP | 2,450.00 | 8.1365 | 19,934.43 |
Other account payable | |||
Including: USD | 1,087.90 | 6.7114 | 7,301.33 |
DKK | 140,969.52 | 0.9422 | 132,821.48 |
Non-current liabilities due within one year | |||
Including: EUR | 460,417.53 | 7.0084 | 3,226,790.22 |
DKK | 1,114,977.70 | 0.9422 | 1,050,531.99 |
(2) Explanation on foreign operational entity, including as for the major foreign operational entity, disclosedmain operation place, book-keeping currency and basis for selection; if the book-keeping currency changed,explain reasons
?Applicable ¡õNot applicableSubsidiary of the Company IRD was established in Denmark in 1996. The 66% equity of IRD were required by the Company in cashin April 2019, and in October 2020, increasing the shareholding to 34.00% by cash purchase. After the increase in holdings, thecompany acquired 100.00% of the company's equity. Book-keeping currency of IRD was Danish krone, and IRD mainly engaged inthe R&D, production and sales of fuel cell components.Subsidiary Borit was established in Belgium in 2010. the Company acquired 100% equity of Borit by cash acquisition in November2020. Borit is denominated in Euro and engaged in the R&D, production and sales of fuel cell components.
65. Government grants
(1) Government grants
Unit: RMB/CNY
Category
Category | Amount | Item | Amount reckoned in current gain/loss |
Construction of the R&D center for fuel cells in Denmark | 800,000.00 | Other income | 800,000.00 |
Job stabilization subsidy | 2,310,744.62 | Other income | 2,310,744.62 |
2021 the 28th batch of grants for Enterprise Technology Center of Zhejiang Province | 1,000,000.00 | Other income | 1,000,000.00 |
Subsidy funds for manufacturing individual champions, specializing in new small giants | 500,000.00 | Other income | 500,000.00 |
2020 the financial support funds for introduce investment enterprise Tong Cai (2016) No. 187 | 583,329.00 | Other income | 583,329.00 |
Construction of innovation pilot benchmark | 90,000.00 | Other income | 90,000.00 |
Funding of talent training | 330,000.00 | Other income | 330,000.00 |
Service charge for three agencies | 993,890.43 | Other income | 993,890.43 |
Other | 1,498,285.82 | Other income | 1,498,285.82 |
Total | 8,106,249.87 |
(2) Government grants rebate
¡õApplicable?Not applicable
66. Other
NilVIII. Changes of consolidation scope
1. Enterprise combined under the different control
(1) Enterprise combines not under the same control occurred in the period
Nil
(2) Combination cost and goodwill
Nil
(3) Identifiable assets and liability on purchasing date under the purchaserNil
(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 ofobtained control rights in the Period or not
¡õYes ?No
(5) Notes relating to the purchase date or the end of the period in which the merger consideration or the fairvalue of the purchasee¡¯s identifiable assets and liabilities cannot be reasonable determinedNil
(6) Other explanation
Nil
2. Enterprise combines under the same control
(1) Business combinations 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 dateNil
3. Reverse purchase
Basic information of the transaction, the basis on which the transaction constitutes a reverse purchase, whether theassets and liabilities retained by the listed company constitute a business and the basis thereof, the determination ofthe merger cost, the amount of the adjusted equity according to the equity transactions and its calculation: NA
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
¡õYes ?No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss ofcontrol during the period
¡õYes ?No
5. Other reasons for consolidation range changed
Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary, subsidiaryliquidation, etc.) and related information:
On June 30, 2022, a Japanese company co-invested in the Wuxi Weifu Qinglong Power Technology Co., Ltd with IRD FUEL CELLSA/S, BORIT NV, ROBERT BOSCH INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New DynamicIndustrial Development Fund (Limited Partnership), the Company holds 45% equity directly and 30% equity indirectly.
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary
Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
WFJN | Nanjing | Nanjing | Spare parts of internal-combustion engine | 80.00% | Enterprise combines under the same control | |
WFLD | Wuxi | Wuxi | Automobile exhaust purifier, muffler | 94.81% | Enterprise combines under the same control | |
WFMA | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
WFCA | Wuxi | Wuxi | Spare parts of internal-combustion engine | 100.00% | Investment | |
WFTR | Wuxi | Wuxi | Trading | 100.00% | Enterprise combines under the same control | |
WFSC | Wuxi | Wuxi | Spare parts of internal-combustion engine | 66.00% | Investment | |
WFTT | Ningbo | Ningbo | Spare parts of internal-combustion engine | 98.83% | 1.17% | Enterprise combined under the different control |
WFAM | Wuxi | Wuxi | Spare parts of internal-combustion engine | 51.00% | Enterprise combined under the different control | |
(WUHAN) | Wuhan | Wuhan | Automobile exhaust purifier, muffler | 60.00% | Investment | |
(Chongqing) | Chongqing | Chongqing | Automobile exhaust purifier, muffler | 100.00% | Investment | |
(Nanchang) | Nanchang | Nanchang | Automobile exhaust purifier, muffler | 100.00% | Investment | |
WFAS | Wuxi | Wuxi | Smart car device | 66.00% | Investment | |
WFDT | Wuxi | Wuxi | Wheel motor | 80.00% | Enterprise combined under the different control | |
WFFC | Wuxi | Wuxi | Fuel cell components | 45.00% | 30.00% | Investment |
SPV | Denmark | Denmark | Investment | 100.00% | Investment | |
IRD | Denmark | Denmark | Fuel cell components | 100.00% | Enterprise combined under the different control | |
IRD America | America | America | Fuel cell components | 100.00% | Enterprise combined under the different control | |
Borit | Belgium | Belgium | Fuel cell components | 100.00% | Enterprise combined under the different control | |
Borit America | America | America | Fuel cell components | 100.00% | Enterprise combined under the different control |
Explanation on share-holding ratio in subsidiary different from ratio of voting right: nil
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
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% | 13,647,361.87 | 220,264,640.74 | |
WFSC | 34.00% | 3,558,197.18 | 24,614,948.50 | |
WFLD | 5.19% | 4,689,571.65 | 139,655,362.58 | |
WFAM | 49.00% | 15,808,199.77 | 205,837,114.54 | |
Total | 37,703,330.47 | 590,372,066.36 |
Explanation on holding ratio different from the voting right ratio for minority shareholders: nil
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Subsidiary
Subsidiary | Ending balance | |||||
Current assets | Non -current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
WFJN | 1,158,547,830.40 | 313,800,605.52 | 1,472,348,435.92 | 332,967,393.67 | 36,844,671.80 | 369,812,065.47 |
WFSC | 194,100,650.20 | 49,340,187.51 | 243,440,837.71 | 170,649,693.14 | 170,649,693.14 | |
WFLD | 4,851,565,933.64 | 1,419,720,518.79 | 6,271,286,452.43 | 3,631,534,169.63 | 219,642,813.61 | 3,851,176,983.24 |
WFAM | 411,355,529.72 | 524,911,152.62 | 936,266,682.34 | 452,201,892.87 | 64,732,998.05 | 516,934,890.92 |
Total | 6,615,569,943.96 | 2,307,772,464.44 | 8,923,342,408.40 | 4,587,353,149.31 | 321,220,483.46 | 4,908,573,632.77 |
Unit: RMB/CNY
Subsidiary | Opening balance | |||||
Current assets | Non -current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
WFJN | 1,163,244,507.43 | 312,639,160.97 | 1,475,883,668.40 | 403,140,636.22 | 39,065,672.06 | 442,206,308.28 |
WFSC | 216,066,879.24 | 46,302,741.60 | 262,369,620.84 | 200,467,446.49 | 200,467,446.49 | |
WFLD | 4,503,223,903.30 | 1,354,614,615.10 | 5,857,838,518.40 | 3,558,321,743.41 | 21,480,042.25 | 3,579,801,785.66 |
WFAM | 413,380,063.83 | 483,832,825.41 | 897,212,889.24 | 450,194,211.90 | 59,932,162.99 | 510,126,374.89 |
Total | 6,295,915,353.80 | 2,197,389,343.08 | 8,493,304,696.88 | 4,612,124,038.02 | 120,477,877.30 | 4,732,601,915.32 |
Unit: RMB/CNY
Subsidiary | Current period | |||
Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
WFJN | 447,804,363.41 | 65,145,897.60 | 65,145,897.60 | -51,110,746.71 |
WFSC | 226,170,484.98 | 10,460,851.26 | 10,460,851.26 | -33,350,047.74 |
WFLD | 3,287,233,284.58 | 138,297,551.67 | 138,297,551.67 | 397,683,438.88 |
WFAM | 330,358,273.12 | 32,245,277.07 | 32,245,277.07 | 92,627,392.88 |
Total | 4,291,566,406.09 | 246,149,577.60 | 246,149,577.60 | 405,850,037.31 |
Unit: RMB/CNY
Subsidiary | Last Period | |||
Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
WFJN | 541,395,186.39 | 88,001,445.49 | 88,001,445.49 | -11,789,938.06 |
WFSC | 206,427,800.85 | 10,430,300.86 | 10,430,300.86 | 45,758,253.85 |
WFLD | 4,394,119,908.54 | 139,109,362.55 | 139,109,362.55 | -670,433,668.67 |
WFAM | 308,180,892.75 | 34,874,756.04 | 34,874,756.04 | 25,574,054.82 |
Total | 5,450,123,788.53 | 272,415,864.94 | 272,415,864.94 | -610,891,298.06 |
(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 financial statementrangeNil
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 companyNil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Joint venture or associated enterprise
Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
Directly | Indirectly | |||||
Wuxi Weifu Environmental Catalysts. Co., Ltd. | Wuxi | Wuxi | Catalyst | 49.00% | Equity method | |
RBCD | Wuxi | Wuxi | Internal-combustion engine accessories | 32.50% | 1.50% | Equity method |
Zhonglian Automobile Electronics Co., Ltd. | Shanghai | Shanghai | Internal-combustion engine accessories | 20.00% | Equity method | |
Wuxi Weifu Precision Machinery Manufacturing Co., Ltd. | Wuxi | Wuxi | Internal-combustion engine accessories | 20.00% | Equity method | |
Changchun Xuyang Weifu Automobile Components Technology Co., Ltd. | Changchun | Changchun | Automobile components | 34.00% | Equity method | |
PrecorsGmbH | Germany | Germany | Fuel cell components | 8.11% | Equity method | |
Wuxi ChelianTianxia Information Technology Co., Ltd. | Wuxi | Wuxi | Telematics services | 8.83% | 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:
(1)Precors GmbH:
Wholly-owned subsidiary of the Company - Borit, holds 8.11% equity of Precors, Borit appointed a director to Precors. Though therepresentative, Borit can participate in the operation policies formulation of Precors, and thus exercise a significant influence overPrecors.
(2)ChelianTianxia:
The Company holds 8.8295% equity of Chelian Tianxia, and appointed a director to Chelian Tianxia. Though the representative, theCompany can participate in the operation policies formulation of Chelian Tianxi, and thus exercise a significant influence over ChelianTianxi.
(2) Main financial information of the important joint venture
Nil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current period | Opening balance/Last Period | |||||
WFEC | RBCD | Zhonglian Electronics | WFEC | RBCD | Zhonglian Electronics | |
Current assets | 3,102,810,812.30 | 15,083,675,405.65 | 1,201,826,767.80 | 4,359,756,878.88 | 14,697,384,325.87 | 71,871,241.06 |
Non -current assets | 337,992,109.46 | 2,903,051,707.73 | 6,530,286,742.47 | 344,385,727.94 | 3,080,929,311.51 | 6,819,520,183.89 |
Total assets | 3,440,802,921.76 | 17,986,727,113.38 | 7,732,113,510.27 | 4,704,142,606.82 | 17,778,313,637.38 | 6,891,391,424.95 |
Current liabilities | 1,176,624,832.76 | 9,397,043,991.47 | 974,515,296.05 | 2,858,118,635.51 | 8,623,318,592.84 | 2,970,685.68 |
Non-currentliabilities
Non-current liabilities | 496,355,986.25 | 2,547,905.48 | 224,616,134.38 | 2,578,140.19 | ||
Total liabilities | 1,672,980,819.01 | 9,397,043,991.47 | 977,063,201.53 | 3,082,734,769.89 | 8,623,318,592.84 | 5,548,825.87 |
Minority shareholders¡¯ equity | ||||||
Attributable to parent company shareholders¡¯ equity | 1,767,822,102.75 | 8,589,683,121.91 | 6,755,050,308.74 | 1,621,407,836.93 | 9,154,995,044.54 | 6,885,842,599.08 |
Share of net assets calculated by shareholding ratio | 866,232,830.35 | 2,920,492,261.44 | 1,351,010,061.75 | 794,489,840.10 | 3,112,698,315.15 | 1,377,168,519.82 |
Adjustment items | ||||||
--Goodwill | 267,788,761.35 | 1,407,265.96 | 267,788,761.35 | 1,407,265.96 | ||
--Unrealized profit of internal trading | -30,013,111.43 | -40,372,840.77 | ||||
--other | -0.28 | -0.01 | -0.28 | -0.01 | ||
Book value of equity investment in associated enterprise e | 866,232,830.35 | 3,158,267,911.08 | 1,352,417,327.70 | 794,489,840.10 | 3,340,114,235.45 | 1,378,575,785.77 |
Fair value of the equity investment of associated enterprise with public offers concerned | ||||||
Operation income | 2,448,287,999.54 | 8,322,989,203.32 | 9,460,906.82 | 4,268,529,267.97 | 10,208,920,776.81 | 11,255,332.80 |
Net profit | 142,874,508.54 | 1,687,151,931.01 | 841,207,709.66 | 184,342,978.45 | 1,988,551,544.06 | 891,476,084.86 |
Net profit of the termination of operation | ||||||
Other comprehensive income | ||||||
Total comprehensive income | 142,874,508.54 | 1,687,151,931.01 | 841,207,709.66 | 184,342,978.45 | 1,988,551,544.06 | 891,476,084.86 |
Dividends received from joint venture in the year | 382,918,855.12 | 49,000,000.00 | 279,062,772.15 |
(4) Financial summary for non-important Joint venture and associated enterprise
Unit: RMB/CNY
Ending balance/Current period | Opening balance/Last Period | |
Joint venture: | ||
Amount based on share-holding ratio | ||
Associated enterprise: | ||
Total book value of investment | 205,317,329.30 | 204,764,926.80 |
Amount based on share-holding ratio |
--Net profit
--Net profit | 639,624.55 | 19,892,865.88 |
--Total comprehensive income | 639,624.55 | 19,892,865.88 |
(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterpriseNil
(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 conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Ni
6. Other
Nil
X. Risk related with financial instrumentMain financial instrument of the Company including monetary funds, structured deposits, account receivable, equityinstrument investment, financial products, loans, and account payable etc., more details of the financial instrumentcan be found in relevant items of Note VII. Risks concerned with the above-mentioned financial instrument, andthe risk management policy takes for lower the risks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower the adverseimpact on performance of the Company to minimum standards, and maximized the benefit for shareholders andother investors. Base on the risk management targets, the basic tactics of the risk management is to recognized andanalyzed the vary risks that the Company counted, established an appropriate risk exposure baseline and caring riskmanagement, supervise the vary risks timely and reliably in 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 includingcredit exposure, market risk and liquidity risk. BOD of the Company takes full charge of the risk management targetand policy-making, and takes ultimate responsibility for the target of risk management and policy. Compliancedepartment and financial control department manager and monitor those risk exposures to ensuring the risks arecontrol 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 loss of other party. The company's credit risk mainly comes from monetary funds, structured deposits,note receivable, account receivable and other account receivables, etc. The management has established anappropriate credit policy and continuously monitors the exposure to these credit risks.The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions suchas commercial banks, the management believes that these commercial banks have higher credit and asset status, andhave lower credit risks. The Company 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 thecredit risk exposure. To prevent the risks, the company has formulated a new customer credit evaluation system andan existing customer credit sales balance analysis system. The new customer credit evaluation system aims at newcustomers, the company will investigate a customer¡¯s background according to the established process to determinewhether to give the customer a credit line and the credit line size and credit period. Accordingly, the company hasset a credit limit and a credit period for each customer, which is the maximum amount that does not require additionalapproval. The analysis system for credit sales balance of existing customers means that after receiving a purchaseorder from an existing customer, the company will check the order amount and the balance of the accounts owedby the customer so far, if the total of the two exceeds the credit limit of the customer, the company can only sell tothe customer on the premise of additional approval, otherwise the customer must be required to pay thecorresponding amount in advance. In addition, for the credit sales that have occurred, the company analyzes andaudits the monthly statements for risk warning of accounts receivable to ensure that the company¡¯s overall creditrisk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balancesheet.
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due tofluctuations in the market price changes and produce, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company¡¯s financial status and cash flow arising from rates changes in market.IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, inline with the anticipative change orientation, choose floating rate or fixed rate, that is the rate in future period willgoes up prospectively, than choose fixed rate; if the rate in future period will decline prospectively, than choose thefloating rate. In order to minor the bad impact from difference between the expectation and real condition, loans forliquid funds of the Company are choose the short-term period, and agreed 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 mainlyrelated with the USD, EUR, CHF, JPY, HKD and DKK, except for the USD, EUR, CHF, JPY, HKD and DKKcarried out for the machinery equipment purchasing of parent company and WFAM, material purchasing of parentcompany, technical service and trademark usage costs of parent company, the import and export of WFTR,operation of IRD and operation of Borit, other main business of the Company are pricing and settle with RMB(CNY). In consequence of the foreign financial assets and liabilities takes minor ratio in total assets, the Companyhas small FX risk of the financial instrument, considered by management of the Company.As of June 30, 2022, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
the Company are carried with CNY/RMB?Foreign currency assets of the Company as of June 30, 2022
Item
Item | Ending foreign currency balance | Convert rate | Ending CNY balance converted | Share of assets(%) |
Monetary fund |
Including: USD
Including: USD | 6,306,874.16 | 6.7114 | 42,327,959.18 | 0.13 |
EUR | 20,343,256.77 | 7.0084 | 142,573,634.99 | 0.45 |
HKD | 16,555,587.57 | 0.8552 | 14,158,338.49 | 0.05 |
JPY | 361,309,032.00 | 0.049136 | 17,753,280.60 | 0.06 |
DKK
DKK | 5,875,093.79 | 0.9422 | 5,535,513.37 | 0.02 |
Account receivable | ||||
Including: USD | 5,703,570.03 | 6.7114 | 38,278,939.90 | 0.12 |
EUR | 1,123,220.09 | 7.0084 | 7,871,975.68 | 0.03 |
JPY
JPY | 7,091,196.00 | 0.049136 | 348,433.01 | 0.00 |
DKK | 19,264,105.05 | 0.9422 | 18,150,639.78 | 0.06 |
Other account receivable | ||||
Including: DKK | 3,183,888.87 | 0.9422 | 2,999,860.09 | 0.01 |
Total share of assets
Total share of assets | 0.93 |
¢ÚForeign currency liability of the Company as of 30 June 2022:
Item | Ending foreign currency balance | Convert rate | Ending CNY balance converted | Share of liabilities(%) |
Short-term loans | ||||
Including: USD | 1,106,598.36 | 6.7114 | 7,426,824.23 | 0.06 |
EUR | 27,373,707.15 | 7.0084 | 191,845,889.19 | 1.62 |
Account payable | ||||
Including: USD | 770,313.72 | 6.7114 | 5,169,883.50 | 0.04 |
EUR | 2,403,640.58 | 7.0084 | 16,845,674.64 | 0.14 |
JPY | 24,899,918.00 | 0.049136 | 1,223,482.37 | 0.01 |
CHF | 209,442.70 | 7.0299 | 1,472,361.24 | 0.01 |
DKK | 12,537,073.02 | 0.9422 | 11,812,430.20 | 0.10 |
GBP | 2,450.00 | 8.1365 | 19,934.43 | 0.00 |
Other account payable | ||||
Including: USD | 1,087.90 | 6.7114 | 7,301.33 | 0.00 |
DKK | 140,969.52 | 0.9422 | 132,821.48 | 0.00 |
Non-current liabilities duewithin one year
Non-current liabilities due within one year | ||||
Including: EUR | 460,417.53 | 7.0084 | 3,226,790.22 | 0.03 |
DKK | 1,114,977.70 | 0.9422 | 1,050,531.99 | 0.01 |
Total ratio in liabilities | 2.02 |
¢Û Other pricing risk
The equity instrument investment held by the Company with classification as trading financial asset and other non-current financial assets are measured on fair value of the balance sheet date. The fluctuation of expected price forthese investments will affect the gains/losses of fair value changes for the Company.Furthermore, on the premise of deliberated and approved in 5
th session of 9
thBOD, the Company exercise entrustfinancing with the self-owned idle capital; therefore, the Company has the risks of collecting no principal due toentrust financial products default. Aims at such risk, the Company formulated a ¡°Management Mechanism ofCapital Financing¡±, and well-defined the authority approval, investment decision-making, calculation managementand risk controls for the entrust financing in order to guarantee a security funds and prevent investment risk
efficiently. In order to lower the adverse impact from unpredictable factors, the Company choose short-term andmedium period for investment and investment product¡¯s term is up to 3 years in principle; in variety of investment,the Company did not invest for the stocks, derivative products, security investment fund and the entrust financialproducts aims at security investment as well as other investment with securities concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by theenterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has richcapital to pay the due debts, therefore, a financial control department is established for collectively controlling suchrisks. On the one hand, the financial control department monitoring the cash balance, the marketable securitieswhich can be converted into cash at any time and the rolling forecast on cash flow in future 12 months, ensuring theCompany, on condition of reasonable prediction, owes rich capital to paid the debts; on the other hand, building afavorable relationship with the banks, rationally design the line of credit, credit products and credit terms, guaranteea sufficient limit for bank credits in order to satisfy vary short-term financing requirements.XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Item
Item | Ending fair value | |||
First-order | Second-order | Third-order | Total | |
I. Sustaining measured by fair value | -- | -- | -- | -- |
(i)Trading financial asset | 200,217,862.91 | 22,219,323.17 | 3,560,861,855.40 | 3,783,299,041.48 |
1.Financial assets measured at fair value and whose changes are included in current profit or loss | 200,217,862.91 | 22,219,323.17 | 3,560,861,855.40 | 3,783,299,041.48 |
(1) Investment in debt instruments | 3,560,861,855.40 | 3,560,861,855.40 | ||
(2) Investment in equity instruments | 200,217,862.91 | 200,217,862.91 | ||
(3)Forex contracts | 22,219,323.17 | 22,219,323.17 | ||
(ii)Other equity instrument investment | 677,790,690.00 | 677,790,690.00 | ||
(iii)Account receivable financing | 875,577,584.80 | 875,577,584.80 | ||
(iv)Other non-current assets-equity instrument investment | 198,981,411.00 | 198,981,411.00 | ||
(v)Other non-current assets-Other debt instrument and equity instrument investment | 1,605,500,000.00 | 1,605,500,000.00 | ||
Total assets sustaining measured by fair value | 200,217,862.91 | 221,200,734.17 | 6,719,730,130.20 | 7,141,148,727.28 |
II. Non-persistent measure | -- | -- | -- | -- |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-orderOn 30 June 2022, the trading financial asset-equity instrument investment held by the Company refers to theSNAT (stock code: 600841), Miracle Automation (Stock code: 002009), Lifan Technology (Stock code: 601777)and ST Zotye (Stock code: 000980), determining basis of the market price at period-end refers to the closing priceof 30 June 2022.
3. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on second-orderOn 30 June 2022, other non-current financial assets-equity instrument investment held by the Company refers tothe Guolian Securities (stock code: 601456), determining basis of the market price at period-end refers to the
closing price and liquidity discounts of 30 June 2022.The trading financial assets that are continuously measured at the second level of fair value are swap contracts andforward foreign exchange settlement and sale contracts. The fair value measurement is based on the fair value ofthe swap contracts and forward foreign exchange settlement and sale contracts provided by the bank that signed thecontract.
4. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on third-order
(1) Account receivable financing
For this part of financial assets, the Company uses discounted cash flow valuation techniques to determine its fairvalue. Among them, important unobservable input values mainly include discount rate and contractual cash flowmaturity period. The cash flow with a contract expiration period of 12 months (inclusive) shall not be discounted,and the cost shall be regarded as its fair value.
(2) Fair value of other equity instrument investment-Changes in fair value included in other comprehensive incomeDue to the lack of market liquidity for this part of financial assets, the Company uses the replacement cost methodto determine its fair value. Among them, the important unobservable input values mainly include the financial dataof the invested company, etc.
(3) Fair value of other debt instrument and equity instrument investment
The fair value of wealth management products is determined by the Company using discounted cash flow valuationtechniques. Among them, the important unobservable input values are mainly the expected annualized rate of returnand the risk factor of wealth management products.
5. Continuous third-level fair value measurement items, adjustment information between the opening andclosing 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
NilXII. Related party and related party transactions
1. Parent company of the enterprise
Parent company
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 | RMB 5,289,262,000.00 | 20.23% | 20.23% |
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). (Projectsthat 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 of JiangsuProvince.Other explanationNil
2. Subsidiary of the enterprise
Found more in Note IX. 1.¡± Equity in subsidiary¡±
3. Joint venture and associated enterprise
Found more in Note IX.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
Other Related party | Relationship with the Enterprise |
Robert Bosch Company | Second largest shareholder of the Company |
Guokai Metal | The enterprise controlled by parent company |
Hebei Machinery | The actual controller is the related natural person of the company |
Key executive | Director, supervisor and senior executive of the Company |
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
Unit: RMB/CNY
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 | 16,947,881.11 | 40,000,000.00 | N | 18,852,456.91 |
RBCD | Goods and labor | 174,508,017.89 | 450,000,000.00 | N | 218,444,783.58 |
WFEC | Goods | 246,646,895.23 | 700,000,000.00 | N | 905,770,785.87 |
Robert Bosch Company | Goods and labor | 93,906,096.78 | 300,000,000.00 | N | 115,666,003.14 |
Changchun Xuyang | Goods | 342,520.00 | 1,500,000.00 | N |
Goods sold/labor service providing
Unit: RMB/CNY
Related party | Content of related transaction | Current period | Last Period |
WFPM | Goods and labor | 522,692.40 | 19,742,012.48 |
RBCD | Goods and labor | 1,633,269,280.49 | 2,250,967,590.73 |
WFEC | Goods and labor | 158,613.70 | 3,581,524.21 |
Robert Bosch Company | Goods and labor | 724,668,201.55 | 649,193,996.57 |
Changchun Xuyang
Changchun Xuyang | Goods | 181,484.70 | |
Hebei Machinery | Goods | 77,607,431.74 |
Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services:
Nil
(2) Related trusteeship management/contract & entrust management/ outsourcingNil
(3) Related lease
As a lessor for the Company:
Unit: RMB/CNY
Lessee | Assets type | Lease income recognized in the Period | Lease income recognized at last Period |
WFEC | Workshop | 1,190,379.04 |
As a lessee for the Company:nil
(4) Related guarantee
Nil
(5) Related party¡¯s borrowed/lending funds
Unit: RMB/CNY
Related party | Amount of loan | Starting date | Expiry date | Note |
Borrowing | ||||
Wuxi Industry Group | 5,470,000.00 | 2021-07-29 | 2022-07-21 | |
Lending |
(6) Related party¡¯s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
Unit: RMB/CNY
Item | Current period | Last Period |
Remuneration of key manager | 4,400,000.00 | 6,230,000.00 |
(8) Other related transactions
Unit: RMB/CNY
Related party | Item | Current period | Last Period |
RBCD | Payment of technical commission fee etc. | 312,038.48 | - |
RBCD | Purchasing fixed assets | 1,314,941.34 | 528,378.37 |
Robert Bosch Company
Robert Bosch Company | Payment of technical commission fee etc. | 130,459.36 | 4,123,940.70 |
Robert Bosch Company | Sales of fix assets | - | 272,339.98 |
Robert Bosch Company | Purchasing fixed assets | 54,716.98 | 599,549.16 |
WFEC | Sales of fix assets | - | 414,601.77 |
WFEC | Energy payable- utilities | 614,493.68 | - |
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
Item | Related party | Ending balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Account receivable | WFPM | 4,660,960.64 | 10,925.29 | 1,233,084.39 | |
Account receivable | RBCD | 385,798,620.85 | 56,890.49 | 48,954,455.60 | 56,805.74 |
Account receivable | Robert Bosch Company | 328,749,828.77 | 845,939.26 | 236,685,486.17 | 426,203.85 |
Other account receivable | Robert Bosch Company | 692,995.30 | |||
Account paid in advance | Robert Bosch Company | 539,263.12 | |||
Other non-current assets | Robert Bosch Company | 37,057,941.00 | 9,932,547.00 | ||
Account receivable | WFEC | 64,400.00 | 6,440.00 | 6,212,780.39 | |
Account receivable | Changchun Xuyang | 227,321.23 | 2,224.35 | 995,215.93 | |
Account receivable | Hebei Machinery | 86,362,016.99 | |||
Account paid in advance | Guokai Metal | 793,600.00 |
(2) Payable item
Unit: RMB/CNY
Item | Related party | Ending book balance | Opening book balance |
Account payable | WFPM | 9,711,292.58 | 11,634,159.55 |
Other account payable | WFPM | 29,000.00 | 29,000.00 |
Account payable | WFEC | 302,317,621.63 | 299,939,408.63 |
Account payable | RBCD | 25,567,164.72 | 33,418,536.50 |
Account payable | Robert Bosch Company | 3,316,768.42 | 16,412,385.58 |
Account payable | Guokai Metal | 2.86 | |
Other current liabilities | RBCD | 0.05 | 120,466,375.78 |
Other current liabilities | Robert Bosch Company | 3,170.62 | 39,165.98 |
Other current liabilities | WFEC | 1,415.05 | |
Other account payable | Wuxi Industry Group | 5,475,621.94 | 5,476,184.14 |
Contractual liability | RBCD | 0.36 | 0.36 |
Contractual liability | Robert Bosch Company | 113,046.28 | 796,325.77 |
Contractual liability | WFEC | 10,884.98 | |
Other account payable | Guokai Metal | 2,717,849.00 | 2,717,849.00 |
7. Undertakings of related party
Nil
8. Other
NilXIII. Share-based payment
1. Overall situation of share-based payment
?Applicable ¡õNot applicable
Unit: RMB/CNY
Total amount of various equity instruments grantedby the company in the current period
Total amount of various equity instruments granted by the company in the current period | 0.00 |
Total amount of various equity instruments exercised by the company in the current period | 0.00 |
Total amount of various equity instruments invalidated by the company in the current period | 0.00 |
The scope of the exercise price of the stock options issued by the company at the end of the period and the remaining period of the contract | The grant price is 15.48 Yuan per share; the exercise time is from the first trading day 24 months after the completion of the registration of the restricted stocks granted in the first tranche to the last trading day within 60 months from the date of completion of the registration of the restricted stock granted in the first tranche, so the remaining period of the contract is 3 years and 5 months. |
2. Share-based payment settled by equity
?Applicable ¡õNot applicable
Unit: RMB/CNY
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 |
Basis for determining the number of vesting equity instruments | Unlocking conditions |
Reasons for the significant difference between estimate in the current period and estimate in the prior period | N/A |
Cumulative amount of equity-settled share-based payments included in the capital reserve | 118,866,686.47 |
Total amount of expenses confirmed by equity-settled share-based payments in the current period | 35,819,280.93 |
Other explanationThis restricted stock incentive plan has been reviewed and approved by the company's second extraordinary general meeting ofshareholders in 2020. The overview of this restricted stock incentive plan is as follows:
(1) Stock source: the company's A-share common Share repurchased from the secondary market.
(2) Grant date: November 12, 2020.
(3) Grant objects and number of grants: 19,540,000 restricted stocks were granted to 601 incentive objects of the company and itssubsidiaries.
(4) Grant price: 15.48 Yuan/share.
(5) Grant registration completion date: December 4, 2020.
(6) Lifting the restrictions on sales:
Unlock period
Unlock period | Unlock time | Ratio of unlocked quantity to granted quantity |
Phase I unlocked | Starting from the first trading day 24 months after the completion of the registration of the first grant and ending on the last trading day within 36 months | 4/10 |
Phase II unlocked | Starting from the first trading day 36 months after the completion of the registration of the first grant and ending on the last trading day within 48 months | 3/10 |
Phase III unlocked | Starting from the first trading day 48 months after the completion of the registration of the first grant and ending on the last trading day within 60 months | 3/10 |
(7)Performance appraisal requirements at the company level:
Unlock conditions | Performance appraisal requirements |
The first batch of unlock conditions | 2. the growth rate of self-operating profit in 2021 will not be less than 6% compared with the year of 2019, the absolute amount will not be less than 845 million Yuan; 3. the cash dividends for year of 2021 shall be no less than 50% of the profit available for distribution of the current year. |
The second batch of unlocking conditions | 2. the growth rate of self-operating profit in 2022 will not be less than 12% compared with the year of 2019, the absolute amount will not be less than 892 million Yuan; 3. the cash dividends for year of 2022 shall be no less than 50% of the profit available for distribution of the current year. |
The third batch of unlockingconditions
The third batch of unlocking conditions | 2. the growth rate of self-operating profit in 2023 will not be less than 20% compared with the year of 2019, the absolute amount will not be less than 958 million Yuan; 3. the cash dividends for year of 2023 shall be no less than 50% of the profit available for distribution of the current year. |
Other explanation: self-operating profit refers to the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses, and deducting the investment income from RBCD and Zhonglian Electronics.
3. Share-based payment settled by cash
¡õApplicable ?Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
NilXIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date : Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasonsThe Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Other events after balance sheet date
On February 7, 2022, the Company held the 7
th session of 10
thBOD to deliberated and approved the ¡°Proposal onEquity Acquisition and Related Transactions¡±. The Company intends to pay a cash with consideration ofapproximately € 60 million to Robert Bosch S.p.A. Societ¨¤ Unipersonale for the 100% equity acquisition ofVHIT S.p.A. ociet¨¤Unipersonale and its wholly-owned subsidiary VHIT Automotive Systems(Wuxi) Co. Ltd heldby Robert Bosch S.p.A. Societ¨¤ Unipersonale. After the transaction, VHIT and VHCN will include in the scope ofconsolidate statement.XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8
th session of 7
thBOD: inorder to mobilize the initiative and creativity of the employees, established a talent long-term incentive mechanism,enhance the cohesive force and competitiveness in enterprise, the Company carried out the above-mentioned annuityplan since the date of reply of plans reporting received from labor security administration department. Annuity plansare: the annuity fund are paid by the enterprise and employees together; the enterprise¡¯s contribution shall not exceed8% of the gross salary of the employees of the enterprise per year, the combined contribution of the enterprise andthe individual employee shall not exceed 12% of the total salary of the employees of the enterprise. In accordancewith the State¡¯s annuity policy, the Company will adjusted the economic benefits in due time, in principle ofresponding to the economic strength of the enterprise, the amount paid by the enterprise at current period control inthe 8 percent of the total salary of last year, the maximum annual allocation to employees shall not exceed five timesthe average 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 adjustedcorrespondingly in line with the operation condition of the Company.In December 2012, the Company received the Reply on annuity plans reporting under the name of WFHT fromlabor security administration department, later, the Company entered into the Entrusted Management Contract ofthe Annuity Plan of WFHT with PICC.
5. Termination of operation
Not applicable
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement andinternal reporting system. Operating segment of the Company refers to the followed components that have beensatisfied at the same time:
¢Ù The component is able to generate revenues and expenses in routine activities;
¢Ú Management of the Company is able to assess the operation results regularly, and determine resources allocationand performance evaluation for the component;
¢Û Being analyzed, financial status, operation results and cash flow of the components are able to require by theCompanyThe Company mainly engaged in the manufacture of fuel system of internal combustion engine and fuel cellcomponents products, auto components, muffler and purifier etc., based on the product segment, the Companydetermine 4 reporting segments as auto fuel injection system and fuel cell components, air management system andexhaust gas treatment system and platform trading business. Accounting policy for the 4 reporting segments areshares the same policy state in Note VSegment assets exclude trading financial asset, other account receivables-dividend receivable, other non-currentfinancial assets, other equity instrument investment, long term equity investment and other retained assets, sincethese assets are not related to products operation.
(2) Financial information for reportable segment
Unit: RMB/CNY
Item
Item | Fuel injection system & Fuel cell components products division | Exhaust Gas Treatment System products division | Auto air management system products division | Platform trading business | Add: investment/income measured by equity, debt instrument & instrument investment or retained assets and income/losses on holdings and disposals, etc. | Offset of segment | Total |
Operating revenue | 3,624,502,718.33 | 3,303,183,248.82 | 264,983,477.58 | 184,662,503.01 | 55,496,586.76 | 7,321,835,360.98 | |
Operating cost | 2,840,070,534.17 | 3,007,896,515.64 | 205,014,212.18 | 28,409,519.28 | 6,024,571,742.71 |
TotalProfit
Total Profit | 285,746,385.70 | 64,188,537.72 | 5,203,744.82 | 161,466,407.39 | 854,359,415.83 | -14,097.70 | 1,370,978,589.16 |
Net profit | 241,136,739.90 | 55,819,933.05 | 2,147,505.09 | 121,099,805.54 | 850,210,281.10 | -10,537.27 | 1,270,424,801.95 |
Total assets | 9,444,092,186.35 | 5,284,615,141.25 | 901,446,241.17 | 4,701,883,464.00 | 12,388,798,458.11 | 1,318,556,132.83 | 31,402,279,358.05 |
Total liabilities | 2,940,523,194.03 | 3,878,743,245.81 | 452,454,237.45 | 4,580,783,658.46 | -344,716.26 | 28,983,058.99 | 11,823,176,560.50 |
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of eachreportable segment, it should state the reasonsNot applicable
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor¡¯s decision
Nil
8. Other
Nil
XVII. Principal notes of financial statements of parent company
1. Account receivable
(1) Classification of account receivable
Unit: RMB/CNY
Category | Ending balance | ||||
Book balance | Bad debt provision | Book value | |||
Amount | Ratio | Amount | Provision ratio | ||
Account receivable with bad debt provision accrual on a single basis | 7,705,639.71 | 0.82% | 7,705,639.71 | 100.00% | |
Including: | |||||
Account receivable with bad debt provision accrual on portfolio | 928,422,567.55 | 99.18% | 3,062,064.17 | 0.33% | 925,360,503.38 |
Including: | |||||
Receivables from clients | 742,137,856.93 | 79.28% | 3,062,064.17 | 0.41% | 739,075,792.76 |
Receivables from internal related parties | 186,284,710.62 | 19.90% | 186,284,710.62 | ||
Total | 936,128,207.26 | 100.00% | 10,767,703.88 | 1.15% | 925,360,503.38 |
Unit: RMB/CNY
Category | Opening balance | ||||
Book balance | Bad debt provision | Book value | |||
Amount | Ratio | Amount | Provision ratio | ||
Account receivable with bad debt provision accrual on a single basis | 7,803,945.24 | 1.42% | 7,803,945.24 | 100.00% |
Including:
Including: | |||||
Account receivable with bad debt provision accrual on portfolio | 540,453,844.97 | 98.58% | 3,495,954.75 | 0.65% | 536,957,890.22 |
Including: | |||||
Receivables from clients | 324,001,494.50 | 59.10% | 3,495,954.75 | 1.08% | 320,505,539.75 |
Receivables from internal related parties | 216,452,350.47 | 39.48% | 216,452,350.47 | ||
Total | 548,257,790.21 | 100.00% | 11,299,899.99 | 2.06% | 536,957,890.22 |
Bad debt provision accrual on single basis: 7,705,639.71 yuan
Unit: RMB/CNY
Name | Ending balance | |||
Book balance | Bad debt provision | Provision ratio | Accrual causes | |
BD bills | 7,201,691.00 | 7,201,691.00 | 100.00% | Have difficulty in collection |
Tianjin LOVOL Engines Co., Ltd. | 503,945.24 | 503,945.24 | 100.00% | Have difficulty in collection |
Quanchai Engine Co., Ltd. | 3.47 | 3.47 | 100.00% | Have difficulty in collection |
Total | 7,705,639.71 | 7,705,639.71 |
Bad debt provision accrual on portfolio:3,062,064.17 yuan
Unit: RMB/CNY
Name | Ending balance | ||
Book balance | Bad debt provision | Provision ratio | |
Within 6 months | 729,344,451.43 | ||
6 months to 1 year | 8,379,147.23 | 837,914.72 | 10.00% |
1-2 years | 2,039,943.17 | 407,988.63 | 20.00% |
2-3 years | 930,257.13 | 372,102.85 | 40.00% |
Over 3 years | 1,444,057.97 | 1,444,057.97 | 100.00% |
Total | 742,137,856.93 | 3,062,064.17 |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
¡õApplicable ?Not applicable
By account age
Unit: RMB/CNY
Account age | Ending balance |
Within 1 year (including 1 year) | 924,008,309.28 |
Including: Within 6 months | 915,629,162.05 |
6 months to 1 year | 8,379,147.23 |
1-2 years | 2,543,888.41 |
2-3 years | 930,257.13 |
Over 3 years | 8,645,752.44 |
3-4 years | 8,645,752.44 |
Total | 936,128,207.26 |
(2) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Charge off | Other | |||
Bad debt provision | 11,299,899.99 | 532,196.11 | 10,767,703.88 | |||
Total | 11,299,899.99 | 532,196.11 | 10,767,703.88 |
Important bad debt provision collected or switch back: nil
(3) Account receivable actual charge off in the Period
Nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Name | Ending balance of account receivable | Ratio in total ending balance of account receivables | Ending balance of bad debt reserve |
RBCD | 385,781,400.37 | 41.21% | 56,890.49 |
Custom 2 | 132,064,675.11 | 14.11% | 331,649.87 |
WFTR | 80,332,439.40 | 8.58% | |
WFCA | 63,975,039.80 | 6.83% | |
Robert Bosch Company | 48,039,920.31 | 5.13% | 2,717.43 |
Total | 710,193,474.99 | 75.86% |
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other account receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Interest receivable | 102,777.78 | 113,055.56 |
Dividend receivable | 560,425,376.21 | 26,718,900.00 |
Other account receivable | 3,276,834,556.22 | 177,293,562.07 |
Total | 3,837,362,710.21 | 204,125,517.63 |
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
Item | Ending balance | Opening balance |
Interest receivable of unified-borrowing & unified-lending | 102,777.78 | 113,055.56 |
Total | 102,777.78 | 113,055.56 |
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
¡õApplicable ?Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise)
Item (or invested enterprise) | Ending balance | Opening balance |
Zhonglian Automobile Electronics Co., Ltd. | 194,400,000.00 | |
RBCD | 366,025,376.21 | |
WFAM | 26,718,900.00 | |
Total | 560,425,376.21 | 26,718,900.00 |
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
¡õApplicable ?Not applicable
(3) Other account receivable
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature | Ending book balance | Opening book balance |
Staff loans and petty cash | 1,041,780.00 | 400,080.00 |
Balance of related party in the consolidate scope | 3,266,686,521.72 | 169,746,521.72 |
Security deposit | 3,259,262.41 | 1,518,640.00 |
Withholding the social security provident funds | 6,202,190.99 | 5,926,527.66 |
Other | 7,328.10 | 9,364.69 |
Total | 3,277,197,083.22 | 177,601,134.07 |
2) Accrual of bad debt provision
Unit: RMB/CNY
Bad debt provision | 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, 2022 | 307,572.00 | 307,572.00 | ||
Balance of Jan. 1, 2022 in the period | ||||
Current accrual | 54,955.00 | 54,955.00 | ||
Balance on Jun. 30, 2022 | 362,527.00 | 362,527.00 |
Change of book balance of loss provision with amount has major changes in the period
¡õApplicable ?Not applicable
By account age
Unit: RMB/CNY
Account age
Account age | Ending balance |
Within 1 year (including 1 year) | 3,240,762,941.50 |
Including: Within 6 months | 3,226,513,391.50 |
6 months to 1 year | 14,249,550.00 |
1-2 years | 21,843,906.00 |
2-3 years | 14,552,695.72 |
Over 3 years | 37,540.00 |
3-4 years | 37,540.00 |
Total | 3,277,197,083.22 |
3) Bad debt provision accrual, collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Category | Opening balance | Amount changed in the period | Ending balance | |||
Accrual | Collected or reversal | Charge off | Other | |||
Bad debt provision | 307,572.00 | 54,955.00 | 362,527.00 | |||
Total | 307,572.00 | 54,955.00 | 362,527.00 |
4) Other receivables actually Charge off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Enterprise | Nature | Account age | Ratio in total ending balance of other receivables | Ending balance of bad debt reserve | Account age |
WFTR | Balance of related party in the consolidate scope | 3,214,940,000.00 | Within 6 months | 98.10% | |
WFCA | Balance of related party in the consolidate scope | 36,193,906.00 | Within 2 years | 1.10% | |
WFMA | Balance of related party in the consolidate scope | 15,552,615.72 | Within 3 years | 0.47% | |
ZKH Industrial Supermarket (Shanghai) Co., Ltd. | Security deposit | 1,000,000.00 | 1-2 years | 0.03% | 200,000.00 |
Wuxi Youlian Power Co., Ltd. | Security deposit | 750,000.00 | Within 6 months | 0.02% | |
Total | 3,268,436,521.72 | 99.72% | 200,000.00 |
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assetsNil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedNil
3. Long-term equity investment
Unit: RMB/CNY
Item
Item | Ending balance | Opening balance | ||||
Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
Investment for subsidiary | 2,271,500,668.51 | 2,271,500,668.51 | 2,106,415,908.37 | 2,106,415,908.37 | ||
Investment for associates and joint venture | 4,568,844,855.75 | 4,568,844,855.75 | 4,760,866,320.19 | 4,760,866,320.19 | ||
Total | 6,840,345,524.26 | 6,840,345,524.26 | 6,867,282,228.56 | 6,867,282,228.56 |
(1) Investment for subsidiary
Unit: RMB/CNY
The invested entity | Opening balance (book value) | Current changes (+, -) | Ending balance (book value) | Ending balance of depreciation reserves | |||
Additional Investment | Negative Investment | Provision for impairment loss | Other | ||||
WFJN | 185,974,031.01 | 3,234,676.26 | 189,208,707.27 | ||||
WFLD | 468,968,346.39 | 3,775,184.78 | 472,743,531.17 | ||||
WFMA | 170,998,252.32 | 994,187.38 | 171,992,439.70 | ||||
WFCA | 222,778,790.43 | 708,774.70 | 223,487,565.13 | ||||
WFTR | 33,924,529.85 | 318,710.84 | 34,243,240.69 | ||||
WFSC | 51,150,646.86 | 428,118.96 | 51,578,765.82 | ||||
WFTT | 238,112,165.62 | 1,398,521.94 | 239,510,687.56 | ||||
WFAM | 82,454,467.99 | 82,454,467.99 | |||||
WFDT | 54,116,034.53 | 28,541.28 | 54,144,575.81 | ||||
SPV | 597,938,643.37 | 154,198,044.00 | 752,136,687.37 | ||||
Total | 2,106,415,908.37 | 165,084,760.14 | 2,271,500,668.51 |
(2) Investment for associates and joint venture
Unit: RMB/CNY
Enterprise | Opening balance (book value) | 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 accrual | Other | ||||
I. Joint venture | |||||||||||
II. Associated enterprise | |||||||||||
RBCD | 3,193,389,537.44 | 565,073,831.03 | 732,050,752.43 | 3,026,412,616.04 | |||||||
Zhonglian Automobile | 1,378,575,785.77 | 168,241,541.93 | 194,400,000.00 | 1,352,417,327.70 | |||||||
WFPM | 45,845,041.36 | 5,479,693.04 | 51,324,734.40 | ||||||||
ChelianTianxia | 143,055,955.62 | -4,365,778.01 | 138,690,177.61 |
Subtotal
Subtotal | 4,760,866,320.19 | 734,429,287.99 | 926,450,752.43 | 4,568,844,855.75 | |||||||
Total | 4,760,866,320.19 | 734,429,287.99 | 926,450,752.43 | 4,568,844,855.75 |
(3) Other explanation
Nil
4. Operating income and cost
Unit: RMB/CNY
Item | Current period | Last Period | ||
Income | Cost | Income | Cost | |
Main business | 2,262,029,970.36 | 1,784,089,964.47 | 3,010,827,415.47 | 2,214,544,926.38 |
Other business | 149,159,237.68 | 135,896,195.07 | 210,116,060.96 | 188,982,608.49 |
Total | 2,411,189,208.04 | 1,919,986,159.54 | 3,220,943,476.43 | 2,403,527,534.87 |
Information related to performance obligations: N/A
5. Investment income
Unit: RMB/CNY
Item | Current period | Last Period |
Investment income from holding trading financial asset | 100,780,374.04 | 3,468,760.80 |
Investment income in subsidiaries | 55,881,129.25 | |
Investment income in joint ventures and associated enterprises | 734,429,287.99 | 831,855,487.43 |
Investment income of financial products | 137,428,400.49 | |
Total | 835,209,662.03 | 1,028,633,777.97 |
6. Other
NilXVIII. Supplementary Information
1. Current non-recurring gains/losses
?Applicable ¡õNot applicable
Unit: RMB/CNY
Item | Amount | Note |
Gains/losses from the disposal of non-current asset | -285,098.92 | |
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) | 26,095,621.93 | |
Profit and loss of assets delegation on others¡¯ investment or management | 508,215.09 | |
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 | -69,141,331.87 | |
Switch back of provision for depreciation of account receivable which was singly taken depreciation test | 593,396.00 | |
Other non-operating income and expenditure except for the aforementioned items | 197,098.29 | |
Less: Impact on income tax | -6,602,079.68 |
Impact on minority shareholders¡¯ equity
Impact on minority shareholders¡¯ equity | 852,439.65 | |
Total | -36,282,459.45 | -- |
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
¡õApplicable ?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
¡õApplicable ?Not applicable
2. ROE and earnings per share(EPS)
Profits during report period | Weighted average ROE | Earnings per share(EPS) | |
Basic earnings per share (RMB/Share) | Diluted earnings per share (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | 6.24% | 1.25 | 1.25 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 6.43% | 1.28 | 1.28 |
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)
¡õApplicable ?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)
¡õApplicable ?Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the differencesadjustment audited by foreign auditing institute, listed name of the instituteNil
BOD of WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
Chairman:
Wang Xiaodong
August 23, 2022