WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.ANNUAL REPORT 2024
April 2025WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section I. Important Notice Contents and Interpretation
Board of Directors Board of Supervisory all directors supervisors and senior executives of Weifu
High-Technology Group Co. Ltd. (hereinafter referred to as the Company) hereby confirm that
there are no any fictitious statements misleading statements or important omissions carried in this
report and shall take all responsibilities individual and/or joint for the reality accuracy and
completion of the whole contents.Yin Zhenyuan Principal of the Company and Feng Zhiming person in charge of accounting works
and Wu Junfei person in charge of accounting organ (accounting principal) hereby confirm that the
Financial Report of 2024 Annual Report is authentic accurate and complete.All directors have attended the Meeting for the Report deliberation.The forward-looking statements with future plans involved in the Report do not constitute a
substantial commitment for investors. Investors and related parties should maintain sufficient risk
awareness and investors are advised to exercise caution of investment risks.Main risks that the Company may face in future operation are described in the “prospects for thefuture development” under the “Management Discussion and Analysis” in the Report and investors
are advised to check them out.The profit distribution plan that was deliberated and approved by the Board Meeting is: based on
total share capital of 971986293 distributed 9.00 yuan (tax included) bonus in cash for every 10-
share held by all shareholders 0 share bonus issued (tax included) and no transfer of capital reserve
into share capital. When the profit distribution plan is implemented if there is a change in the total
amount of shares entitled to profit distribution the total amount of shares entitled to profit
distribution on the equity registration date at the time of implementation of the distribution plan
shall be adjusted based on the principle of unchanged distribution proportion.The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions the Chinese version shall prevail.
2WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Content
Section I. Important Notice Contents and Interpret... 1
Section II Company Profile and Main Financial Inde... 6
Section III Discussion and Analysis of the Managem.. 10
Section IV. Corporate Governance ................... 40
Section V. Environmental and Social Responsibility.. 60
Section VI. Important Matters ...................... 66
Section VII. Changes in Shares and Particulars abo.. 81
Section VIII. Preferred Stock ...................... 89
Section IX. Corporate Bonds ........................ 90
Section X. Financial Report ........................ 91
3WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Documents Available for Reference
I. Financial statement carrying the signatures and seals of person in charge of the company principal of the
accounting works and person in charge of accounting organ (accounting supervisor);
II. Original audit report with the seal of aaccounting firm and ssignature and seal of the CPA;
III. Original documents of the Company and manuscripts of public notices that were disclosed in the website
designated by CSRC in the reporting period;
IV. Text of the Annual Report 2024 containing the signature of the legal representative of the Company;
V. Place for preparation: Office of the BOD of the Company
4WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
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
Refers to Robert Bosch Co. Ltd ROBERT BOSCH GMBH
Company
RBCD Refers to Robert Bosch Powertrain Ltd.WUXI WEIFU LIDA CATALYTIC CONVERTER CO.WFLD Refers to
LTD.WFJN Refers to NANJING WFJN CO. LTD.NINGBO WFTT TURBOCHARGING TECHNOLOGY
WFTT Refers to
CO. LTD.WFCA Refers to WUXI WEIFU CHANG A?N CO. LTD.WUXI WEIFU MASHAN FUEL INJECTION
WFMA Refers to
EQUIPMENT CO. LTD.WFTR Refers to WUXI WEIFU INTERNATIONAL TRADE CO. LTD.WUXI WEIFU SCHMITTER POWERTRAIN
WFSC Refers to
COMPONENTS CO. LTD.WFAM Refers to WUXI WFAM PRECISION MACHINERY CO. LTD.WFDT Refers to Wuxi WeifuE-DRIVE TechnologiesCo. Ltd.WUXI WEIFU AUTOSMART SEATING SYSTEM CO.WFAS Refers to
LTD.WFLH Refers to Weifu Lianhua Automotive Parts（Fuzhou）Co. Ltd.SPV Refers to Weifu Holding ApS
IRD Refers to IRD Fuel Cells A/S
Borit Refers to Borit NV
WFQL Refers to Wuxi Weifu Qinglong Power Technology Co. Ltd.VHIO Refers to VHIT S.p.A. Società Unipersonale
VHWX VHCN Refers to VHIT Automotive Systems (Wuxi) Co.Ltd
Lezhuo Bowei Refers to Lezhuo Bowei Hydraulic Technology (Shanghai) Co. Ltd
WuXi Zhuowei Refers to Wuxi Zhuowei Times High-Tech Co. Ltd.WFSS Refers to WEIFU Smart Sensing (Wuxi) Technology Co. Ltd.HySTech Refers to Voith HySTech GmbH
WFEC Refers to Wuxi WFECal Catalysts. Co. Ltd.WFPM Refers to Wuxi Weifu Precision Machinery Manufacturing Co. Ltd.Zhonglian Electronics Refers to Zhonglian Automobile Electronics Co. Ltd.AutoLink Refers to Wuxi AutoLink Global Information Technology Co. Ltd.Changchun Xuyang Weifeng Automotive Parts Technology
Changchun Xuyang Refers to
Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Zhongxinghua Refers to Zhongxinghua Certified Public Accountants LLP
The reporting period Refers to January 1 2024 to December 31 2024
5WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock WFHT Su Weifu-B Stock code 000581 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in威孚高科
Chinese)
Foreign name of the Company (if
WEIFU HIGH-TECHNOLOGY GROUP CO.LTD.applicable)
Short form of foreign name of the
WFHT
Company (if applicable)
Legal representative Yin Zhenyuan
No.5 Huashan Road Xinwu District Wuxi (production & operation place:1. No.8
Huashan Road Xinwu District Wuxi; 2. No.17 Changjiang Road Xinwu District
Registrations add.Wuxi; 3. No.139 Xixie Road Xinwu District Wuxi; 4. No.13 Xinhua Road Xinwu
District Wuxi)
Code for registrations add 214028On May 25 1994 registered address of the Company changed to “Lot 46 NationalHigh-Tech Industrial Development Zone Wuxi” instead of “No.107 Renmin WestRoad Wuxi”; on December 9 2008 registered address changed to “No.5 HuashanRoad New District Wuxi” instead of“Lot 46 National High-Tech IndustrialHistorical changes of registered address Development Zone Wuxi”; on June 12 2019 registered address changed to “No.5Huashan Road Xiwu District Wuxi (production & operation place:1. No.8 Huashan
Road Xinwu District Wuxi; 2. No.17 Changjiang Road Xinwu District Wuxi; 3.No.139 Xixie Road Xinwu District Wuxi; 4. No.13 Xinhua Road Xinwu DistrictWuxi)”
Offices add. No.6 Huashan Road Xinwu District Wuxi
Codes for office add. 214028
Company’s Internet Web Site http://www.weifu.com.cn
E-mail Web@weifu.com.cn
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Liu Jinjun Xu Kan
Contact add. No.6 Huashan Road Xinwu District Wuxi No.6 Huashan Road Xinwu District Wuxi
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail Web@weifu.com.cn Web@weifu.com.cn
III. Information disclosure and preparation place
Website of the Stock Exchange where the
Shenzhen Stock Exchange(http://www.szse.cn/)
annual report of the Company is disclosed
Media and Website where the annual China Securities Journal; Securities Times; and Juchao
report of the Company is disclosed Website(http://www.cninfo.com.cn)
Preparation place for annual report Office of the Board of Directors
6WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
IV. Registration changes of the Company
Organization code 91320200250456967N
Changes of main business since listing (if applicable) No change
Controlling shareholder of the Company was Weifu Group before
2009. and controlling shareholder changed to Wuxi Industry
Group since 31 May 2009 due to the merge of Weifu Group by
Wuxi Industry Group. Weifu Group and Wuxi Industry Group are
Previous changes of controlling shareholders (if applicable) wholly state-owned companies of Wuxi State-owned Assets
Supervision & Administration Commission of State Council
therefore the actual controller of the Company turns to Wuxi
State-owned Assets Supervision & Administration Commission of
State Council.V. Other relevant information
CPA engaged by the Company
Name of CPA Zhongxinghua Certified Public Accountants LLP
Offices add. for CPA 20th Floor South Building Building 1 No. 20 Lize Road Fengtai District Beijing
Signing Accountants Pan Hua Zhang Xiaoping
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable □ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable □ Not applicable
VI. Main accounting data and financial indexes
Whether the Company is required to retrospectively adjust or restate prior year’s accounting data or not
□ Yes □ No
Year-on-year
2024 2023 increase 2022
(+)/decrease (-)
Operation income (RMB) 11167263155.85 11093141950.98 0.67% 12729634917.03
Net profit attributable to shareholders of the
1659533740.631837291259.68-9.67%118819836.30
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non- 1579109476.17 1597321239.86 -1.14% 119966549.62
recurring gains/losses (RMB)
Net cash flows arising from operating
1582332648.741626249911.90-2.70%-2575742649.43
activities (RMB)
Basic earnings per share (RMB/Share) 1.71 1.88 -9.04% 0.09
Diluted earnings per share (RMB/Share) 1.71 1.88 -9.04% 0.09
Weighted average ROE 8.47% 9.92% -1.45% 0.64%
Year-on-year
Year-end of 2024 Year-end of 2023 increase Year-end of 2022
(+)/decrease (-)
Total assets (RMB) 28404900411.22 28081087791.81 1.15% 28528913065.01
Net assets attributable to shareholder of
19840528176.6419399892671.782.27%17696679170.72
listed company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring gains/losses for the last three financial years is
negative and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
7WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
□Yes □No
The lower of the net profit before or after deduction of non-recurring gains/losses is negative
□Yes □No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either IAS (International
Accounting 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 accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operation income 2903412685.96 2790820866.76 2523164569.51 2949865033.62
Net profit attributable to shareholders
549126314.07405214955.83323058151.63382134319.10
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 548772219.33 426304613.01 260525780.83 343506863.00
non-recurring gains/losses
Net cash flows arising from operating
4587238.96883305078.41180786527.26513653804.11
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report or not
□Yes ? No
IX. Items and amounts of non-recurring gains/losses
□Applicable □Not applicable
In RMB
Item 2024 2023 2022 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of 9510530.25 126538939.67 -148566.90
assets)
Governmental subsidy reckoned into current
gains/losses (except for those with normal operation
business concerned and conform to the national
48616030.8331251345.14111917334.77
policies & regulations and are enjoyed according to
certain standard and having a continuous impact on
the company’s gains/losses)
8WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Except for effective hedging business related to the
normal operation of the company gains/losses arising
from changes in fair value of trading financial assets
and trading financial liabilities held by non-financial
-4243156.8223096322.48-145070562.29
enterprises as well as investment income obtained
from disposal of trading financial assets trading
financial liabilities and available for sale financial
assets
Gains/losses of assets delegation on others’ investment
43932736.0894647509.981236142.58
or management
Reversal of provision of impairment of accounts
receivable which are treated with separate 4270595.02 5862949.67 1265113.45
depreciation test
Gains/losses from debt reorganization -599671.45 -323525.00
Other non-operating income and expenditure except
10738857.9022253986.9039799099.77
for the aforementioned items
Other gains/losses items that meet the definition of
-10418.17
non-recurring profit and loss
The write-off of previous years recovered in current
63149.93
period
Less: impact on income tax 30485887.28 40956611.82 1952583.99
Impact on minority shareholders’ equity (after-
1305351.9022464047.138192690.71
tax)
Total 80424264.46 239970019.82 -1146713.32 --
Other gains/losses items that conform to the definition of non-recurring gains/losses:
□ Applicable □ Not applicable
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/losses.Information on the definition of Non-Recurring Gain/Loss listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-Recurring Gains/Losses as the Recurring Gains/Losses
□Applicable □Not applicable
The Company does not have any Non-Recurring Gain/Loss listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-Recurring Gains/Losses as the Recurring Gains/Losses.
9WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section III Discussion and Analysis of the Management
I. Industrial information of the Company within the reporting period
The company shall comply with the disclosure requirements of auto manufacturing related industries in the No.3 Guidelines for
Self-regulation of Listed Companies of Shenzhen Stock Exchange - Disclosure of Industry Information.The company belongs to the industry of auto parts manufacturing. 2024 was a crucial year to realize the objectives and tasks of
the 14th Five-Year Plan. Although the automobile industry fluctuated obviously at the beginning of the year due to price wars low
base and Spring Festival holidays under the strong leadership of the CPC Central Committee and the State Council government
departments at all levels actively implemented policies and timely introduced the "Two New" policies. With the joint efforts of the
whole industry production and sales achieved steady progress throughout the year showing strong development resilience and
vitality and becoming an important engine to stimulate economic growth. In 2024 the automobile production and sales in China were
31.282 million and 31.436 million respectively with year-on-year increases of 3.7% and 4.5% and the production and sales
maintained over 30 million hitting a new top again.
1. Commercial vehicle market situation
In 2024 due to weak domestic real estate infrastructure market and economic growth the performance of commercial vehicles
was lower than intended; however the performance of new energy commercial vehicles gas vehicles and export markets remained
strong which was an important support for structural growth. In 2024 the production and sales of commercial vehicles were 3.805
million and 3.873 million respectively with year-on-year decreases of 5.8% and 3.9% of which the annual export was 904000 with
a year-on-year increase of 17.5%.In terms of production and sales of different models in 2024 the production and sales of trucks were 3.297 million and 3.362
million respectively with year-on-year decreases of 6.8% and 5.0% and the production and sales of passenger cars were 508000 and
511000 respectively with year-on-year increases of 2.0% and 3.9%.
In terms of segment models among the varieties of truck medium trucks increased obviously and mini trucks decreased by
over 30%. The sales of heavy trucks were 902000 with a year-on-year decrease of 1.0%; the sales of medium trucks were 128000
with a year-on-year increase of 19.0%; the sales of light trucks were 1.9 million with a year-on-year increase of 0.3%; the sales of
mini trucks were 433000 with a year-on-year decrease of 30.9%. Among the varieties of passenger car the sales of large and
medium passenger cars increased rapidly while the sales of light passenger cars decreased slightly. Among them the sales of large
passenger cars ware 66000 with a year-on-year increase of 23.0%; the sales of medium passenger cars were 53000 vehicles with a
year-on-year increase of 38.8%; the sales of light passenger cars were 392000 with a year-on-year decrease of 1.9%.In 2024 the commercial vehicle market was still dominated by traditional fuels with diesel vehicles and gasoline vehicles
accounting for 52.3% and 26.8% of the annual commercial vehicle market respectively; new energy vehicles (pure electric plug-in
hybrid fuel cell) accounted for about 15.1% of which pure electric vehicles accounted for the highest which was 14.2%; other
alternative fuels accounted for only 0.07%; gas vehicles accounted for 5.7% under the support of the increase in oil and gas price
difference and the prominent advantage of operating cost.
2. Passenger car market situation
In 2024 driven by the trade-in policy and supported by new energy passenger cars and exports the production and sales of
passenger cars continued to grow playing a positive role in stabilizing the basic development of automobile consumption. The
production and sales of passenger cars were 27.477 million and 27.563 million respectively with year-on-year increases of 5.2% and
5.8%. The overseas exports were 4.955 million with a year-on-year increase of 19.7%. Supported by continuous improvement of
product competitiveness new energy penetration and rapid growth of exports the annual market share of independent brands reached
65.2%.
10WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
3. New energy vehicle market situation
Under the combined effect of favorable policies abundant supply lower prices and continuous improvement of infrastructure
new energy vehicles continued to maintain rapid growth. In 2024 the production and sales were 12.888 million and 12.866 million
respectively with year-on-year increases of 34.4% and 35.5% and the sales of new energy vehicles reached 40.9% of the total sales
of new vehicles. Among them the sales of pure electric vehicles was 7.719 million with a year-on-year increase of 15.5%; the sales
of plug-in hybrid vehicles was 5.141 million with a year-on-year increase of 83.3%; the sales of fuel cell vehicles was 5000 vehicles
with a year-on-year decrease of 12.6%.
4. Off-road vehicle market situation
In 2024 the market demand of construction machinery mainly depended on domestic upgrading and export support. Because
the macroeconomic recovery was slow and the demand sides of real estate and infrastructure did not improve significantly the
construction machinery industry declined; agricultural machinery was in a downward trend due to multiple factors such as sluggish
consumption stock saturation and market overdraft. In 2024 the sales of diesel internal combustion engines for construction
machinery was 844000 with a year-on-year decrease of 5.5%; the sales of diesel internal combustion engines for agricultural
machinery was 1.488 million with a year-on-year decrease of 4.4%.(Note: The above industry data sources are China Association of Automobile Manufacturers CNWORLD China Internal
Combustion Engine Industry Association)
5. Matching between company operation and the industry
In 2024 the operating conditions of the company basically matched the development of the industry. Affected by the
macroeconomic environment intensifying competition in the automobile industry relatively weak performance in the commercial
vehicle market the company achieved operating income of 11.167 billion yuan during the reporting period with a year-on-year
increase of 0.67%. The net profit attributable to shareholders of listed companies was 1.66 billion yuan with a year-on-year decrease
of 9.67%.II. Major Business of the Company within the reporting period
The Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines for
Self-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information.(I) Main business engaged by the Company
The main business of the Company is the research and development production and sales of core automotive parts and
currently has four business segments including energy conservation and emission reduction green hydrogen energy intelligent
electric industrial and other. During the reporting period the main products sold were diesel fuel injection system exhaust post-
treatment system intake system core parts of hydrogen energy and fuel cells core parts of thermal management system cabin core
parts core parts of brake system core parts of situation awareness core parts of hydraulic system etc.
1. Fuel injection system including high pressure oil pump high pressure oil rail injector filter and other products widely used
in diesel engines of all levels of power supporting various trucks buses construction machinery marine agricultural machinery
generator sets and can meet the National Emission Standards VI off-road stage IV emission regulations leading in the product
variety production scale market share. While doing a good job in supporting domestic engines some products are exported to the
Americas Southeast Asia the Middle East and other regions.
2. Exhaust post-treatment system including diesel purifier gasoline purifier natural gas purifier muffler catalyst and other
products can meet the National Emission Standards VI off-road stage IV emission regulations with leading technical level market
11WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
scale and production capacity in China widely used in traditional power & plug-in hybrid passenger vehicles commercial vehicles
off-road machinery and other fields and can provide strong support for product upgrading and renewal of OEMs.
3. Intake system including diesel turbocharger gasoline turbocharger natural gas turbocharger and other products can meet the
National Emission Standards VI off-road stage IV emission regulations with the scope of application covering commercial vehicles
traditional power & plug-in hybrid passenger vehicles construction machinery agricultural machinery generator sets and other
fields and can support the major domestic OEMs and automobile manufacturers.
4. Core parts of hydrogen energy and fuel cells including membrane electrode bipolar plate (graphite metal) catalyst and BOP
critical parts (such as valves pumps air compressor critical parts) hydrogen storage bottles and other products mainly support
domestic and foreign hydrogen fuel cell stack and system manufacturers and energy storage enterprises.
5. Core parts of electric drive systems including motor shaft end cover water jacket and other products mainly support
domestic and foreign new energy passenger car enterprises or electric drive system manufacturers.
6. Core parts of thermal management systems including electronic oil pump electronic water pump thermostat water cooling
plate and other products mainly support domestic and foreign new energy passenger vehicles commercial vehicle enterprises.
7. Cabin core parts including car seat assembly seat skeleton electric long slide shock absorber and other products mainly
support domestic mainstream commercial vehicles passenger car enterprises.
8. Core parts of brake systems including mechanical vacuum pump and other products mainly support domestic and foreign
mainstream passenger car enterprises.
9. Core parts of situation awareness: including 4D imaging radar forward radar angle radar cabin radar road brake radar and
other products mainly used in intelligent driving intelligent cockpit intelligent parking vehicle-road coordination and other fields.
10. Core parts of hydraulic system: including forklift hydraulic system motor pump internal gear pump motor controller
piston parts and other products mainly support major domestic hydraulic enterprises.(II) Business model of the CompanyThe company follows the business philosophy of “Making Excellent Products Creating Famous Brands and Realizing CommonGrowth of Value” and implements the business model with unified management of the parent company and decentralized production
of subsidiaries. The parent company is responsible for formulating strategic development plans and business objectives and
implementing unified management guidance and assessment on subsidiaries in finance major personnel management core raw
materials quality control and technology research and development. The subsidiaries is responsible for arranging production in
market order management mode not only to ensure the unified quality of products but also help to understand customer needs and
save logistics costs in time maintain the timeliness of production and supply and improve the company's economic benefits.Production and operation of complete vehicle manufacturing during the reporting period
□ Applicable □Not Applicable
Production and operation of automotive parts during the reporting period
□ Applicable □ Not applicable
In ten thousand
Output Sales volume
Year-on-year Year-on-year
Current Same period Current Same period
increase/decre increase/decre
period of last year period of last year
ase (+/-) ase (+/-)
By components
Fuel management system- multi-
174.87202.55-13.67%177.44199.35-10.99%
cylinder pumps
12WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Fuel management system- fuel injector 213.54 242.71 -12.02% 239.30 217.50 10.02%
After-treatment system - diesel purifier 37.71 46.76 -19.35% 36.80 43.90 -16.17%
After-treatment system - gasoline
473.52366.8129.09%439.70342.7928.27%
purifier
Air management system -turbocharger 136.40 97.81 39.45% 128.27 90.36 41.95%
Brake system - vacuum pump 739.99 737.68 0.31% 724.72 734.32 -1.31%
By vehicle facilities
By after-service market
Fuel management system- multi-
0.220.28-21.43%0.240.29-17.24%
cylinder pumps
Fuel management system- fuel injector 0.32 0.29 10.34% 0.10 0.08 25.00%
Air management system -turbocharger 1.40 1.12 25.00% 1.29 1.16 11.21%
Other classification
By domestic area
Fuel management system- multi-
175.09202.83-13.68%177.68199.63-11.00%
cylinder pumps
Fuel management system- fuel injector 213.86 243.00 -11.99% 239.40 217.58 10.03%
After-treatment system - purifier 511.23 413.57 23.61% 476.50 386.69 23.23%
Air management system -turbocharger 137.80 98.93 39.29% 129.56 91.52 41.56%
Brake system - vacuum pump 251.00 249.34 0.67% 241.70 248.00 -2.54%
By oversea area
Brake system - vacuum pump 488.99 488.34 0.13% 483.02 486.32 -0.68%
Explanation of reasons for a year-on-year change of 30% or more
□ Applicable □ Not applicable
Increase in output and sales volume of purifiers and turbocharger is mainly due to the company seizing the growth opportunity in the
hybrid passenger car market and the increase in customer orders during the reporting period.Sales model of spare parts
The Company adheres to the customer-centric approach and applies flexible marketing strategies and standardized development
procedures to satisfy the demands of different types of customers ensure the smooth implementation of customer development plans
and strive for more customers and a larger market share. The Company has established a mechanism for strategic customer visits
with senior management visiting customers or receiving visits from customers on a regular basis holding high-level strategic
meetings special cooperation exchanges and other activities. The Company implements special management for strategic customers
and establishes a four-in-one collaborative organization consisting of the responsible leaders key account managers marketing
department and business divisions to do a good job of customer demand analysis and management customer satisfaction survey and
analysis etc. Meanwhile the Company optimizes business processes by means of information technology to enhance the speed of
response to customer demands and assists customer relationship management through modern technological tools such as call
centers customer data warehouses business intelligence mobile devices and web conferencing. The Company promotes
collaborative marketing of existing businesses and new businesses strengthens communication and cooperation with existing
business customers in new businesses and actively expands new customers and develops potential customers.The Company engages in auto finance business
□Applicable □Not Applicable
The Company engages in business related to new energy automobile
□ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
In RMB
Category Capacity Output Sales volume Sales revenue
Core components for hydrogen fuel cells 1500000 pieces 609500 pieces 767900 pieces 120062335.73
13WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Core parts for E-drive 3820000 pieces 2738600 pieces 2760500 pieces 395983844.96
Exhaust (PEHV) cleaner 2080000 pieces 490000 pieces 499000 pieces 490228800.00
Intake (PHEV) supercharger 700000 units 465000 units 442000 units 341878040.30
III. Analysis on Core Competitiveness
The Company shall comply with the disclosure requirements of the auto manufacturing related industry in the No.3 Guidelines
for Self-regulation of Listed Companies of Shenzhen Stock Exchange - Disclosure of Industry Information.
1. Industry and brand advantages. Established in 1958 with more than sixty years of development the Company has become a
renowned manufacturer of auto parts in China and has established long-term and stable cooperation with major domestic OEMs and
vehicle manufacturers. The existing core auto parts products such as automotive fuel injection system exhaust gas after-treatment
system air intake system and core parts of hydrogen fuel cell have strong market competitiveness and high market shares. The
Company is a leading enterprise in the internal combustion engine industry of China and ranked 39th on the 2024 Top 100 Chinese
Automotive Parts Enterprises.
2. Technology and product advantages. The Company is a national high-tech enterprise with scientific research platforms such
as National Enterprise Technology Center National High Technology Research and Development Program Achievement
Industrialization Base Postdoctoral Research Station Jiangsu Provincial Postgraduate Workstation as well as several provincial
engineering technology research centers provincial engineering laboratories and other R&D institutions which mainly focus on fuel
injection system for vehicles exhaust gas after-treatment system air intake system braking system and core components of hydrogen
and fuel cells intelligent electric vehicles and other businesses for technological innovation and product development. The Company
has acquired a number of key core technologies with the technical indicators of its main products at the leading level in the industry.In recent years the Company has made key strategic layout in the fields of green hydrogen energy and intelligent electric vehicle
and formed product technology research and development capabilities in hydrogen fuel cell core components renewable energy
hydrogen production core parts of E-drive thermal management system components intelligent perception modules and other
product technologies.
3. Management and manufacturing advantages. The Company features a perfect organizational structure management system
and process as well as a financial sharing platform which can realize the effective migration and stable operation of organization
and personnel business and accounting; The Company has built a human resource information system platform so as to guarantee
the timely and accurate standardization of basic data of organization personnel salary and attendance; The Company has established
a procurement sharing system which enables the interconnection of information between enterprises and suppliers that enables
closed-loop management of the procurement process; The Company has implemented Weifu Production System (WPS) with lean
concept and established an overall process quality management system with relatively strong manufacturing quality assurance cost
control and product delivery capabilities. With the focus on smart manufacturing the Company has continued to build a smart
factory with Weifu characteristics and promote the application of AI cloud computing and IOT which can strongly support the
future business development of the Company.
4. Marketing and service advantages. The Company features a stable professional and experienced marketing team which can
provide targeted support and services based on customer demands as well as cordial customer relationships. With regard to long-
term strategic customers the Company has established a four-in-one marketing coordination group consisting of responsible leaders
key account managers marketing departments and business divisions and regular visits among the management of the companies to
promote communication and cooperation. The Company has a relatively complete after-sales service system and has built an after-
sales service network intelligent service platform and set up special maintenance technical service stations nationwide to regularly
train end-users in the use of maintenance and fault analysis and judgment so as to provide customers with fast timely and
professional all-round after-sales services.
14WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
5. Talent team advantages. The management team of the Company has extensive experience in the auto parts industry with
excellent industry reputation. The Company attaches importance to the growth of employees as well as the development of core
talents. With years of accumulation the Company has deposited a group of professional and high-quality management and technical
talents and established a reasonable talent echelon which provides a strong guarantee of human resources for the long-term and
stable development of the Company. The human resource management system of the Company is relatively comprehensive and the
continuously optimized human resource management system has provided a fair platform for career development of employees to
realize their values. The Company attaches importance to the service and care for employees and aims to enhance the service
experience of employees through the construction of employee self-help platform to create a working environment with warmth and
a sense of belonging.
6. International cooperation advantages. The Company is committed to the core automotive parts industry and has long been
cooperating with strategic partners at home and abroad in depth. The Company has been cooperating with industry giant Robert
Bosch Company since 1984 and has established a long-term and stable cooperation relationship with Bosch and continuously
expanded cooperation in new business areas and the cooperation model between the two sides has become an industry model.Meanwhile the Company has built joint ventures with Autocam in the United States and Voith in Germany and cooperates closely
in the field of high-end precision manufacturing. By long-term cooperation with renowned enterprises in Europe and the United
States the Company has cultivated a group of middle and senior executives and technical personnel with international
communication abilities international visions and familiarity with international standards and has mastered R&D process design
quality control and production management capabilities with international advanced levels which has promoted favorable
development of the business of the Company as well as international business and market development.
7. Excellent corporate culture with the mission of “Better Life Powered by Quality and Intelligence” and the vision of “ to growinto a top global manufacturer of industrial components” the Company has practiced the core values of “Focus InnovationCommitment and Integration” while adopting the enterprise spirit of “Being Practical Being Courageous Being Cooperative andBeing Pioneering”. The Company has been building a culture system of “Quality and Intelligence” with “Quality” and “Intelligence”
as the twin engines of the corporate culture which reflect the adherence to the original intention and the pursuit of the future. The
excellent corporate culture has provided strong support for the continued operational excellence of the Company and its growth into a
trustworthy and respected industrial expert thereby playing an active role in the achievement of the strategic goals of the Company.IV. Analysis of Main Businesses
1. Overview
2024 was a crucial year for the in-depth implementation of the “14th Five-Year Plan”. Faced with many difficulties such as theserious competition in the automobile industry and the fluctuation in raw material prices the company took “Exploring the Marketfor Survival Implementing Lean Management for Benefit and Laying out New Industries for Development” as its business policy
and all employees made concerted efforts to continuously improve the operation quality and ensure the smooth operation of the
company. During the reporting period the company realized an operating income of 11.167 billion yuan with a year-on-year
increase of 0.67%; the net profit attributable to shareholders of listed companies was 1.66 billion yuan with a year-on-year decrease
of 9.67%; the total assets were 28.405 billion yuan with a year-on-year increase of 1.15%; the net assets attributable to shareholders
of listed companies were 19.841 billion yuan with a year-on-year increase of 2.27%.Main work carried out by the company during the reporting period:
1. Made concerted efforts for all business segments and accelerated the implementation of new businesses
Energy saving and emission reduction business segment: In the fuel injection system products and the annual sales of common-
rail pumps was 1.28 million; the annual sales of VE distribution pumps was nearly 340000; the annual sales of mechanical pumps
15WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
was over 150000. In the post-treatment system products the gasoline purifiers had outstanding performance in the hybrid passenger
car market with annual sales of nearly 3.43 million and a year-on-year increase of 24%; the annual sales of diesel purifiers was
nearly 210000 and the market share and competitiveness of passenger cars and commercial vehicles steadily increased; the annual
sales of natural gas purifiers was 75000 with a year-on-year increase of 21%. In the intake system products the annual sales of four-
cylinder diesel turbochargers were 583000 continuously maintaining the Top 1 market share in the domestic market; the gasoline
turbochargers had an outstanding performance in the hybrid passenger car market with annual sales of 626000 and a year-on-year
increase of 137% reaching a record high; the annual sales of six-cylinder turbochargers was 87000 with a year-on-year increase of
18%.
Green hydrogen energy intelligent electric business and other business segments: The development and batch production of
ultra-high power metal bipolar plates high performance single batteries and membrane electrodes for key customers of fuel cell
products were completed; the vehicle verification of hydrogen supply parts for key customers was completed; multiple projects of
electronic thermostats hydrogen ejectors electronic water pumps ejectors were obtained; the delivery of the first external 5kW
equipment for hydrogen production from electrolyzed water was completed; the equipment development and trial operation of the
demonstration project of hydrogen production from electrolyzed water was completed. The core parts of electric drive system were
approved for mass production for new projects of several head customers and the annual sales of motor shafts was 1.725 million
with a year-on-year increase of 24%; the electronic oil pump products realized large-scale mass production for domestic head
customers and some new projects of several key customers were obtained; the 3D corner radar project of a strategic customer was
obtained; the small batch delivery of mine radar and road brake radar was realized; the Fuzhou base of automobile seats was
completed and put into production; the mass production of passenger car customer projects was realized.
2. Deeply cultivated traditional business technologies and accelerated the research and development of new businesses
Energy saving and emission reduction business segment: In the fuel injection system products complete the development and
batch supply of CB6-25 single cylinder high-pressure pump; complete the reliability and engine verification of customer B`s sample
of ultra-high pressure GP project was completed; the performance and partial reliability test of natural gas dual-fuel direct injection
14L engine was completed; the ignition of methanol single fuel direct injection 9L engine for top customers was completed; the
engine ignition test test of direct injection injector of hydrogen internal combustion engine was completed; In post-treatment system
products the application development was extended in the extended-range and hybrid passenger car market the development batch
production and supply of diesel natural gas methanol products and off-road products of commercial vehicles were completed; the
technical cost reduction of a number of key products of passenger cars and commercial vehicles was completed. In the intake system
products the development of hybrid high-efficiency gasoline turbocharger platform was completed the batch production of variable
nozzle turbocharger for passenger cars was realized; the development of 2.5L high-performance diesel turbocharger platform was
completed; the on-board installation and small batch supply of new generation of high-efficiency engines for key customers were
completed; the pre-research and development of alternative fuel turbocharger products started; the expansion of methanol
turbocharger products in key customers and batch production and supply were realized; the demonstration operation of hydrogen
engine for passenger cars started.Green hydrogen energy intelligent electric and other business segments: in the core parts of hydrogen fuel cells the stable batch
production of membrane electrodes was realized in China; the sample development and small batch supply of exhaust valve
electronic thermostat and electronic water pump D sample were completed; the sample development of hydrogen pressure reducing
valve and hydrogen circulating pump B sample was completed. In the hydrogen production from renewable energy the product
development and integration of 100kW PEM hydrogen production from electrolyzed water system platform was realized the
industrial demonstration operation project of hydrogen production equipment was approved and the A sample development of
100kW electrolyzer was completed. In the thermal management system/core parts the sample development of electronic oil pump
16WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
multi platforms was completed and several projects of key customers were obtained. In the intelligent sensing core modules the
system integration and debugging of the cost reduction scheme for 4D imaging radar products were completed; the 4D angle radar
project of the strategic customer was successfully promoted; the sample development of forklift motor controller B sample was
completed; started the development of suspension motor pump products and gained projects of key clients.
3. Strengthened strategic and investment cooperation made overall plans and promoted coordinated development
In terms of strategic planning the implementation of the mid-term review and improvement plan of the 14th Five-Year Plan was
promoted; the annual review of strategic planning was completed; specially the in-depth planning of VH business and review and
refreshing of the strategic planning of global fuel cell business; the planning and implementation of hydrogen bottle localization
construction projects was promoted continuously; the strategic research on seats hydrogen energy air suspension and humanoid
robots was completed; the government cooperation projects such as radar and hydrogen storage were actively promoted.In terms of investment cooperation the joint venture with Voith Company of Germany on high-pressure hydrogen storage
business was successfully completed; the introduction of radar business was completed the employee stock ownership was promoted
and an independent market-oriented joint venture company was established; the acquisition of minority stakes of Weifu Lida was
completed; the new partners of car seat business were introduced and the signing and landing of the joint venture project of Fuzhou
base was completed; the joint venture and cooperation between Wuxi Zhuowei and Lianyungang Zhuowei was completed; the new
round of financing of Autolink was involved to further consolidate the business layout of intelligent network connection; the
cooperation signing and capital contribution of Boyuan Xingcheng Fund was completed to expand the cooperation of major
shareholders of the company. The construction of post-investment management system was enhanced and the post-investment
governance continuously was optimized.
4. Strengthened quality and safety control and continued to promote project construction
The quality level of the company's core businesses and products increased steadily and the continuous 0km failure of some
products was less than 10PPM; the quality manuals were revised and the best scheme of certification was promoted; in terms of
preventive quality management the application of special characteristics screening methods and quality valves in the development
projects of the division and subsidiaries was continuously promoted and the full coverage of special characteristics re-identification
and re-control in core products was completed. The application of intelligent manufacturing technologies was promoted and the
online and promotion of information systems such as tool management system equipment management system spare parts modules
and tooling management system was completed. The compliance management and control of the Group's major security r isks was
optimized and the life cycle management of special equipment was strengthened; the hidden dangers of sudden environmental
accidents/incidents were systematically investigated to comprehensively prevent the risk of major EHS accidents. The R&D building
the sixth phase of Plot 103 and other projects were completed; the preliminary planning of hydrogen energy industrial park was
promoted in an orderly manner; the review of ISO50001 energy management system was completed. the digital construction of
business was continuously promoted and the WFAC digital factory consulting and system implementation project was completed;
the VHWX core business system construction project was completed to realize the integration with the headquarters business; the
upgrade of container cloud platform cluster deployment architecture and the development of technology research and development
framework were completed; the data center operation monitoring and management were completed; the launch of the smart park
platform was completed.
5. Continuously improved the management quality and upgraded the management steady
The refinement of business monitoring and analysis dimensions was promoted and the monitoring and analysis of loss-making
businesses were strengthened; the preparation and implementation of overseas business plan in 2025 were promoted; the launch of
the group project management platform was completed. The financial control and management were strengthened the structure of
assets and liabilities was continuously optimized the implementation of preferential tax policies was promoted and the construction
17WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
of financial statement consolidation and management cockpit system was completed. The construction of a new platform for
procurement sharing was promoted business requirements and the whole process of procurement implementation were further
standardized and the standardization and transparency of procurement processes was realized; the organizational structure of direct
material procurement was optimized the subdivision of procurement categories was focused on and the procurement
professionalism was enhanced. The slow flow risks were paid attention continuously and the special disposal was implemented; a
logistics visualization platform was built and put into use. the layout of human resources was continuously optimized the
introduction of key core technology talents and the deployment of new business talents were focused on; the construction of
internationalization ability of talents was explored the competency model of international talent development was established and
the international exchange mechanism system was improved; the platform construction of “San Hang Yi Jiang” was strengthened and
various special training activities were organized; the market-oriented incentive mechanism of strategic new business companies was
explored; the company's medium and long-term incentive strategies and incentive distribution models such as "High Goals" and
"Super Profit Sharing" were continuously optimized; the employee performance management system was further improved.
2. Revenue and cost
(1) Component of operating revenue
In RMB
20242023
Increase/decrease
Ratio in operating Ratio in operating
Amount Amount y-o-y (+/-)
revenue revenue
Total operating
11167263155.85100%11093141950.98100%0.67%
revenue
By industries
Automotive
11010590101.3998.60%10926750670.9098.50%0.77%
components
Other businesses 156673054.46 1.40% 166391280.08 1.50% -5.84%
By products
Automotive fuel
management 4644625190.85 41.60% 5077092133.74 45.76% -8.52%
system
Automotive after-
3476728220.6231.13%3409054236.7930.73%1.99%
treatment system
Air management
954079620.188.54%662890661.905.98%43.93%
system
Other automobile
1935157069.7417.33%1777713638.4716.03%8.86%
parts
Other businesses 156673054.46 1.40% 166391280.08 1.50% -5.84%
By region
Domestic 9715285972.78 87.00% 9497551219.78 85.62% 2.29%
Foreign 1451977183.07 13.00% 1595590731.20 14.38% -9.00%
By sale mode
Direct sale 11167263155.85 100.00% 11093141950.98 100.00% 0.67%
(2) Industries products regions and sales model that account for more than 10% of the operating revenue
or operating profit of the Company
□ Applicable □Not applicable
In RMB
18WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Gross Increase/decrease Increase/decrease Increase/decrease
Operating revenue Operating cost profit of operating of operating cost of gross profit
ratio revenue y-o-y y-o-y ratio y-o-y
By industries
Automotive
11010590101.399083542710.9917.50%0.77%-0.96%1.44%
components
By products
Automotive
fuel
4644625190.853571749786.5723.10%-8.52%-9.52%0.85%
management
system
Automotive
after-
3476728220.622951546049.2615.11%1.99%-1.74%3.22%
treatment
system
Air
management 954079620.18 767804337.91 19.52% 43.93% 45.09% -0.65%
system
Other
automobile 1935157069.74 1792442537.25 7.37% 8.86% 6.00% 2.49%
parts
By region
Domestic 9558612918.32 7735442329.66 19.07% 2.44% 0.41% 1.63%
Foreign 1451977183.07 1348100381.33 7.15% -9.00% -8.12% -0.90%
By sale mode
Direct sale 11010590101.39 9083542710.99 17.50% 0.77% -0.96% 1.44%
In the event that the statistical caliber of the company’s main business data is adjusted during the reporting period the main business
data of the company has been adjusted according to the caliber at the end of the reporting period in the past year.□ Applicable □Not applicable
(3) Revenue from physical sales larger than revenue from labors
□ Yes □ No
Year-on year
Industries Item Unit 2024 2023 increase
(+)/decrease (-)
Fuel management Sales volume In 10 thousand sets 177.68 199.63 -11.00%
system- multi- Output In 10 thousand sets 175.09 202.83 -14.00%
cylinder pumps Inventory In 10 thousand sets 2.92 5.51 -47.00%
In 10 thousand
Sales volume 239.40 217.58 10.00%
suits
Fuel management
In 10 thousand
system- fuel Output 213.86 243.00 -12.00%
suits
injector
In 10 thousand
Inventory 15.88 41.42 -62.00%
suits
In 10 thousand
Sales volume 476.50 386.69 23.00%
pieces
After-treatment In 10 thousand
Output 511.23 413.57 24.00%
system - purifier pieces
In 10 thousand
Inventory 110.46 75.73 46.00%
pieces
Air management Sales volume In 10 thousand sets 129.56 91.52 42.00%
system - Output In 10 thousand sets 137.80 98.93 39.00%
turbocharger Storage In 10 thousand sets 33.84 25.60 32.00%
Sales volume In 10 thousand sets 724.72 734.32 -1.00%
Braking system -
Output In 10 thousand sets 739.99 737.68 0.00%
vacuum pump
Inventory In 10 thousand sets 31.44 16.17 94.00%
19WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Description for relevant year-on-year data changing over 30%
□ Applicable □ Not applicable
1. Affected by the decrease in market demand the output and sales volume of the multi-cylinder pumps of the fuel management
system decreased year-on-year compared with last year and the inventory decreased.
2. The inventory of the injectors of the fuel management system decreased at year end due to the consumption of inventory at year
beginning.
3. The inventory of the purifiers of after-treatment system and the turbochargers of air management system rose due to the increase in
market demand.
4. For the vacuum pumps of braking system the production plan has been increased due to the increase in market demand..
(4) Performance of significant sales contracts major procurement contract entered into by the company up
to the current reporting period
□ Applicable □ Not applicable
(5) Component of operation cost
Classification of industries
In RMB
2024 2023 Year-on-year
Industries Item Ratio in Ratio in increase
Amount operation Amount operation
(+)/decrease (-)
cost cost
Automotive
Direct material 5670506558.33 62.43% 6555172710.12 71.47% -13.50%
components
Automotive
Labor cost 1035307666.04 11.40% 1032120288.45 11.25% 0.31%
components
Automotive
Depreciation 463753876.84 5.11% 365295186.48 3.98% 26.95%
components
Automotive Varieties of
1913974609.7821.07%1218844311.0213.29%57.03%
components consumption
In RMB
2024 2023 Year-on-year
Products Item Ratio in Ratio in increase
Amount Amount
operation cost operation cost (+)/decrease (-)
Fuel
management Direct material 1771686498.87 49.60% 2254464928.67 57.11% -21.41%
system
Fuel
management Labor cost 547824271.83 15.34% 609871806.26 15.45% -10.17%
system
Fuel
management Depreciation 260629972.83 7.30% 253355374.61 6.42% 2.87%
system
Fuel
Varieties of
management 991609043.04 27.76% 829754027.47 21.02% 19.51%
consumption
system
After-treatment
Direct material 2014792600.28 68.26% 2667691488.46 88.81% -24.47%
system
After-treatment
Labor cost 176389051.84 5.98% 47234645.82 1.57% 273.43%
system
After-treatment
Depreciation 72740341.05 2.46% 27439285.16 0.91% 165.10%
system
20WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
After-treatment Varieties of
687624056.1023.30%261411307.328.70%163.04%
system consumption
Air management
Direct material 704696836.79 91.78% 449083528.19 84.86% 56.92%
system
Air management
Labor cost 36482919.23 4.75% 33448206.33 6.32% 9.07%
system
Air management
Depreciation 15860785.26 2.07% 17304418.13 3.27% -8.34%
system
Air management Varieties of
10763796.631.40%29353240.605.55%-63.33%
system consumption
Other automobile
Direct material 1179330622.40 65.79% 1183932764.80 70.01% -0.39%
parts
Other automobile
Labor cost 274611423.14 15.32% 341565630.04 20.20% -19.60%
parts
Other automobile
Depreciation 114522777.69 6.39% 67196108.58 3.97% 70.43%
parts
Other automobile Varieties of
223977714.0212.50%98325735.635.81%127.79%
parts consumption
Explanation
None
(6) Whether there were changes in the scope of consolidation during the reporting period or not
□Yes □No
Invested in the establishment of two companies: WEIFU Smart Sensing (Wuxi) Technology Co. Ltd. and Weifu Lianhua Automotive
Parts（Fuzhou）Co. Ltd.
(7) Major changes or adjustment in business product or service of the Company in Reporting Period
□ Applicable □Not applicable
(8) Major sales and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) 5241423878.70
Proportion in total annual sales volume for top five clients 46.94%
Ratio of the related party sales in total annual sales from top five clients 30.73%
Information of top five clients of the Company
Proportion in total annual
Serial No. Name Sales (RMB)
sales
1 Robert Bosch Company 2078159069.08 18.61%
2 RBCD 1353240002.27 12.12%
3 Client 1 757814531.99 6.79%
4 Client 2 632864406.15 5.67%
5 Client 3 419345869.21 3.76%
Total -- 5241423878.70 46.94%
Other situation of main clients
□Applicable □ Not applicable
The Company has related party relationships with RBCD and Robert Bosch Company. Additionally the Company's directors
21WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
supervisors senior management personnel key technical personnel and actual controllers do not have direct or indirect interests in
major customers.Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2322087438.72
Proportion in total annual purchase amount for top five suppliers 21.76%
Ratio of the related party purchase in total annual purchase amount from top
9.94%
five suppliers
Information of top five suppliers of the Company
Ratio in annual total
Serial No. Suppliers Purchasing amount (RMB)
purchasing amount
1 WFEC 802404889.00 7.52%
2 Client 1 569936130.00 5.34%
3 Client 2 435531363.55 4.08%
4 Robert Bosch Company 258121140.98 2.42%
5 Client 3 256093915.19 2.40%
Total -- 2322087438.72 21.76%
Other notes of main suppliers of the Company
□ Applicable □ Not applicable
The Company has related party relationships with WFEC and Robert Bosch Company. Additionally the Company's directors
supervisors senior management personnel key technical personnel and actual controllers do not have direct or indirect interests in
major suppliers.
3. Expense
In RMB
Year-on-year increase
2024 2023 Note of major changes
(+)/decrease (-)
Sales expenses 173294600.83 142323212.30 21.76%
Administration expenses 726610451.29 612096726.09 18.71%
Decrease in interest expense
Financial expenses -55769497.98 48040932.65 -216.09%
and increase in interest income
R&D expenses 690258974.54 667871159.95 3.35%
4. R&D investment
□Applicable □Not applicable
Expected impact on
the future
Name of R&D project Project objective Project progress Expected goal
development of the
company
Research and develop
Development and Form the core parts of
the alternative fuel The project is in progress; Increase the market
Application of Core clean fuel injection
injection systems some models have entered share of clean fuel
Parts of Clean Fuel system and apply them
(natural gas methanol customer verification stage products in the future
Injection System to the market
hydrogen etc.)
Development and Develop the high- The project is in progress Form the high-pressure Enhance the existing
Application of High- pressure common-rail and some models have common-rail pump product business of
pressure Common-rail pump products for entered customer products for the company and
Pump products automotive diesel application stage automotive diesel extend the service
22WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Meeting Euro 7 engines meeting Euro 7 engines meeting Euro 7 life of traditional
Emission Standards emission standards emission standards and products
apply them to the
market
Form the diesel fuel Enhance the existing
Development and The project is in progress
Develop the diesel fuel injection parts meeting product business of
Application of Diesel and some models have
injection parts meeting the off-road T4 the company and
Fuel Injection Parts entered customer
off-road T4 emission emission standards and extend the service
Meeting Off-road T4 application stage and used
standards apply them to the life of traditional
Emission Standards for adaptation designs
market products
Development and The project is in progress Form post-treatment Enhance the existing
Develop the post-
Application of Post- some models have entered products of commercial product business of
treatment products for
treatment Products for customer application vehicles meeting Euro the company and
commercial vehicles
Commercial Vehicles stage and a small number 7 emission standards extend the service
meeting Euro 7
Meeting Euro 7 of products have been and apply them to the life of traditional
emission standards
Emission Standards supplied in small batches market products
Develop the exhaust
system meeting the
Enhance the existing
Technology requirements of heat Form post-treatment
product business of
Development of insulation volume products for hybrid
The project have entered the company and
Exhaust System for reduction cost reduction electric vehicles and
mass production stage extend the service
Hybrid Electric and high noise reduction apply them to the
life of traditional
Vehicles of the exhaust system in market
products
hybrid and extended-
range projects
Enhance the existing
Develop the post-
Development of Post- product business of
Develop the post- treatment products for
treatment Technology the company and
treatment products for The project is in progress hydrogen fuel engines
for Hydrogen Fuel extend the service
hydrogen fuel engines and apply them to the
Engines life of traditional
market
products
Develop the exhaust
Development and
Develop the high- system meeting the Enhance the existing
Application of
efficiency anti- Stage IV fuel product business of
Exhaust System for
crystallization post- consumption and the company and
Commercial Vehicles The project is in progress
processor meeting the National Emission extend the service
Meeting Stage IV
lower back pressure Standards VI and life of traditional
Fuel Consumption
requirements achieve the matching products
Standards
application
Development and
The project is in progress Form the turbocharger Enhance the existing
Application of Develop the
some models have entered products for diesel product business of
Turbocharger turbocharger products
customer application engines meeting Euro- the company and
Products for Diesel for diesel engines
stage and a small number 7 emission standards extend the service
Engines Meeting meeting Euro-7
of products have been and apply them to the life of traditional
Euro-7 Emission emission standards
supplied in small batches market products
Standards
Development and
The project is in progress Form the turbocharger Enhance the existing
Application of Develop the
some models have entered products for natural gas product business of
Turbocharger turbocharger products
customer application engine meeting the the company and
Products for Natural for natural gas engine
stage and a small number National Emission extend the service
Gas Engines Meeting meeting the national
of products have been Standards VI and apply life of traditional
the National Emission Emission Standards VI
supplied in small batches them to the market products
Standards VI
Research and Research and develop The shafting design and Breakthrough the high- Enhance the existing
Development of Key the key technologies for rotor dynamics simulation performance product business of
Technologies for high-performance tests have been completed turbocharger the company and
High-performance pneumatic turbochargers and various tests and technology based on air extend the service
23WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Pneumatic to improve the verification have been bearing and achieve life of traditional
Turbochargers turbocharger efficiency carried out with industrialization products
application projects
Enhance the existing
The project is in progress
Form 2.5L high- product business of
some models have entered
Development of 2.5L Develop 2.5L high- performance diesel the company Adapt
customer application
High-performance performance diesel turbocharger products to new application
stage and a small number
Diesel Turbocharger turbocharger and apply them to the scenarios and extend
of products have been
market the service life of
supplied in small batches
traditional products
Enhance the existing
Development and Form the turbocharger product business of
Application of Develop the products for hybrid the company Adapt
The project has entered
Turbochargers for turbocharger for hybrid electric engines and to new application
mass production stage
Hybrid Electric electric engines apply them to the scenarios and extend
Engines market the service life of
traditional products
The project is in progress Become the main
Form large-scale
Development and Develop the core and related products have direction of new
production of core
Application of Core materials for hydrogen been produced in small business and new
materials for hydrogen
Materials for fuel cells (membrane batches and have entered growth point of the
fuels cell and apply
Hydrogen Fuel Cells electrode catalyst) the customer application company in the
them to the market
stage future
The project is in progress
related products have been Become the main
Form large-scale
Development and Develop the key parts produced in small batches direction of new
production of key parts
Application of Key for hydrogen fuel cells and have entered the business and new
for hydrogen fuel cells
Parts of Hydrogen BOP (valves pumps customer application growth point of the
BOP and apply them to
Fuel Cells BOP etc.) stage and a small number company in the
the market
of products have been future
supplied in small batches
The project is in progress Become the main
Form large-scale
Development and Develop the whole a number of customer- direction of new
production of key parts
Industrialization of process flow of key designated projects have business and new
for hydrogen fuel cells
Bipolar Plate for parts for hydrogen fuel been obtained and some growth point of the
and apply them to the
Hydrogen Fuel Cells cells products have been company in the
market
supplied in batches future
Become the main
Development and Develop the core Form the core module direction of new
The project is in progress
Application of Core module products for products for intelligent business and new
and the related samples
Module Products for intelligent sensing sensing and apply them growth point of the
have been delivered
Intelligent Sensing (millimeter wave radar) to the market company in the
future
The batch production and
application of several
projects have been Become the main
Development and achieved for commercial Enhance market direction of new
Develop and promote
Integration of vehicles; a number of recognition and business and new
the intelligent seat
Intelligent Seat projects from key continuously expand growth point of the
products
Products customers have been market scale company in the
obtained for passenger future
cars and have been put
into production
Development of Some manual samples and Become the main
Develop and promote Form the innovative
Related Products and some DV experiments direction of new
the intelligent seat products and apply
Parts for Intelligent have been completed for business and new
products them to the market
Seat Products long slide rail products growth point of the
24WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
company in the
future
Become the main
Development and Realize the mass direction of new
The project is in progress
Application of Core Develop the core parts production and supply business and new
and some products have
Parts for Hydraulic for hydraulic system of the core parts for growth point of the
been applied in batches
System hydraulic system company in the
future
Realize the
Development of Become the key
The sample is being development and mass
Suspension Motor Develop the 5in1 active business in the
developed and trial- production of
Pump (SMPU) suspension products strategic plan of the
produced suspension motor
Platform company
pump
Some products have
Become the main
entered the mass
Development and direction of new
production and delivery Form the core parts for
Application of Core Develop the core parts business and new
stage and some products brake system and apply
Parts for Brake for brake system growth point of the
are in the connection and them to the market
System company in the
communication with
future
customers
Improve the technical
The project is in progress Form the special
Development and capabilities of the
some equipment has been capabilities related to
Application of Develop the intelligent company in the field
used by customers in intelligent
Intelligent manufacturing of intelligent
manufacturing and testing manufacturing
Manufacturing equipment manufacturing and
and new equipment is equipment and apply
Equipment create economic
being designed as required them to the market
benefits
R&D personnel
2024 2023 Change ratio
Number of R&D personnel (person) 1202 1258 -4.45%
Proportion of R&D Personnel in Total Workforce 20.51% 21.84% -1.33%
Educational background
Undergraduate 584 697 -16.21%
Master 328 279 17.56%
Age structure of R&D personnel
Under 30 336 446 -24.66%
30~405545128.20%
R&D investment
2024 2023 Change ratio
R&D investment (RMB) 690258974.54 667871159.95 3.35%
Ratio of R&D investment to operation revenue 6.18% 6.02% 0.16%
The amount of R&D investment capitalized (RMB) 0.00 0.00 0.00%
The proportion of capitalized R&D investment in
0.00%0.00%0.00%
the total R&D investment
Reasons and impacts of significant changes in composition of R&D personnel
□Applicable □Not applicable
Reason of significant changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable □ Not applicable
Reason for significant change in R&D investment capitalization rate and rational description
□ Applicable □ Not applicable
25WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
5. Cash flow
In RMB
Item 2024 2023 Year-on-year growth rate
Subtotal of cash inflow arising from
11723384338.7412367352240.11-5.21%
operating activities
Subtotal of cash outflow arising from
10141051690.0010741102328.21-5.59%
operating activities
Net cash flows arising from operating
1582332648.741626249911.90-2.70%
activities
Subtotal of cash inflow from investing
5377199844.855806265016.93-7.39%
activities
Subtotal of cash outflow from investing
5228195253.724595753280.5213.76%
activities
Net cash flows arising from investing
149004591.131210511736.41-87.69%
activities
Subtotal of cash inflow from financing
491186845.302696375308.64-81.78%
activities
Subtotal of cash outflow from financing
2494389820.585769684317.11-56.77%
activities
Net cash flows arising from financing
-2003202975.28-3073309008.47-34.82%
activities
Net increase of cash and cash equivalents -305042022.19 -215130910.41 41.79%
Main reasons for y-o-y significant changes in aspect of relevant data
□ Applicable □ Not applicable
1.The net cash flow from operating activities decreased by 44 million yuan compared with the previous period mainly due to the
reduction in cash inflows from the sale of goods and the provision of services.
2.The net cash flow from investing activities decreased by 1.062 billion yuan compared with the previous period mainly because the
dividends from joint venture decrease year-on-year.
3.The net cash flow from financing activities increased by 1.07 billion yuan compared with the previous period. In this reporting
period the financing inflows mainly included a decrease of 2.272 billion yuan in borrowing inflows; the financing outflows mainly
included a year-on-year decrease of 4.439 billion yuan in the outflows for repaying borrowings and an increase of 1.046 billion yuan
in outflows for dividends.Reasons of significant difference between the cash flow of operation activity in reporting period and net profit of the Company
□ Applicable □Not applicable
V. Analysis of the non-main business
□Applicable □Not applicable
In RMB
Ratio in
Amount Cause description Whether be sustainable or not
total profit
Yes (The production and operation
It is mainly the earnings of
of the Company's equity-invested
the company's equity-
Investment earnings 1535039086.78 87.36% enterprises RBCD and Zhonglian
invested enterprises RBCD
Electronics are stable and
and Zhonglian Electronics
sustainable)
Gains/losses of fair
-17300039.60-0.98%
value changes
Asset impairment -407383027.85 -23.18%
Non-operating
3924878.000.22%
income
Non-operating
5130865.580.29%
expense
26WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
VI. Assets and liability analysis
1. Major changes of assets components
In RMB
Year-end of 2024 Year-begin of 2024
Ratio
Ratio in Ratio in
changes Note of major changes
Amount total Amount total
(+/-)
assets assets
Monetary funds 2246600451.52 7.91% 2274771699.14 8.10% -0.19%
Account
3737653893.0313.16%3857539958.2013.74%-0.58%
receivable
Inventory 2308920401.14 8.13% 2068533030.94 7.37% 0.76%
Investment real
44960930.390.16%46926716.490.17%-0.01%
estate
Long-term
equity 7035098878.59 24.77% 5947633507.07 21.18% 3.59%
investment
Fixed assets 4461619375.21 15.71% 3969574102.87 14.14% 1.57%
Construction in
380321816.501.34%564605931.902.01%-0.67%
progress
Right-of-use
67765442.370.24%48832472.850.17%0.07%
assets
Short-term
393120147.951.38%838889557.512.99%-1.61%
borrowings
Contract
56148545.130.20%77686881.240.28%-0.08%
liability
Long-term
100000000.000.35%299800000.001.07%-0.72%
borrowings
Lease liability 47316516.48 0.17% 37733196.51 0.13% 0.04%
Foreign assets account for a relatively high proportion
□Applicable □Not applicable
The Whether
Control
Specific Earn proportion there is
measures to
Details Asset Locati ings of overseas any major
Formation Causes Operation Mode ensure the
of the Scale on situa assets in the impairme
safety of
Assets tion company's nt risk or
assets
net assets not
Wholly-owned
subsidiary of the
Company The
RMB engaging in the Company
Business combination
44784 Denm research and will pay full
IRD under non-common Nil 2.26% Nil
million ark development attention to
control
yuan production and the changes
sales of fuel cell in the
component industry and
products. the market
Wholly - owned and
subsidiary of the strengthen
RMB Company corporate
Business combination
231.92 Belgiu engaging in the governance
Borit under non-common Nil 1.17% Nil
million m production and human
control
yuan sales of fuel cell resources
component managemen
products. t financial
Wholly - owned managemen
subsidiary of the t audit
RMB Company supervision
Business combination
627.97 engaging in the and
VHIO under non-common Italy Nil 3.17% Nil
million production and performance
control
yuan sales of appraisal.automobile parts
products
27WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Other Situations Explanation Nil
2. Assets and liabilities measured by fair value
□Applicable □ Not applicable
In RMB
Accumulativ
Amount at Changes of Devaluation
e changes of Amount of Amount of
the fair value of Other Amount at
Item fair value purchase in sale in the
beginning gains/losses withdrawing changes (+-) period-end
reckoned the period period
period in this period in the period
into equity
Financial assets
1.Trading
financial
--
asset(excludi 31958372 33920000 13929395 21771539
6284555.642651047
ng derivative 65.02 00.00 1.67 85.38
072.37
financial
assets)
2.Other
equity 67779069 67779069
instrument 0.00 0.00
investment
3.Receivable 16617499 51437232. 17131871
financing 49.46 79 82.25
Subtotal of - -
55353779339200001392939545681318
financial 6284555.6 42136675
04.4800.001.6757.63
assets 0 39.58
--
55353779339200001392939545681318
Above total 6284555.6 42136675
04.4800.001.6757.63
039.58
Financial
0.000.00
liabilities
Other changes: Maturity Redemption and Reclassification
Whether there have major changes on measurement attributes for main assets of the Company in reporting period or not
□ Yes □No
3. The assets rights restricted till end of the period
Item Book value at period-end Restriction reason
Monetary funds 20363281.63 The margin paid for issuing a bank acceptance bill
Monetary funds 7583721.64 IRD performance bond
Monetary funds 719003.22 Guarantee bond margin
Monetary funds 202231.29 Mastercard earnest money
Monetary funds 4000.00 ETC freezing
Note receivable 43071798.39 Notes pledge for bank acceptance
Receivable financing 556575612.27 Notes pledge for bank acceptance
Total 628519648.44
28WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
VII. Investment analysis
1. Overall situation
?Applicable □Not applicable
Investment amount in reporting period (RMB) Investment amount in last reporting period (RMB) Changes
1582195253.721395664786.3813.36%
2. Major equity investment obtained in the reporting period
? Applicable □ Not applicable
In ten thousand yuan
Progres Profit/l
Type Involve
Major Investm Shareho Invest s as of Expecte oss of
Name of Investm Source of d in Disclosure Disclosure
busiens ent lding Cooperator ment data of d current
investee ent type of fund produ litigatio date (if any) index (if any)
s amount ratio term balance revenue investm
ct n(Y/N)
sheet ent
Core
compon
In Announceme
ents of Capital 16949. 100.00 Own Long
IRD 1 None NA progres 0.00 0.00 N 2024-08-08 nt No.: 2024-hydroge increase 15 % fund term
s 049
n fuel
cells
Core
compon
11214. In Announceme
ents of Capital 100.00 Own Long
Borit 671 None NA progres 0.00 0.00 N 2024-02-08 nt No.:2024-
hydroge increase % fund term
s 050
n fuel
cells
High
pressur
Voith
e In Announceme
Acquisi 42729. Own Industrieve Long
HySTech hydroge 1 40.00% NA progres 0.00 0.00 N 2024-05-15 nt No.:2024-tion 47 fund rwaltung term
n s 040
GmbH
storage
bottle
Wuxi Boyuan
Four
Xingcheng
enterprises Announceme
Venture Capital Newly In
Venture Own including 8 2024-04-16 nt No.:2024-
Partnership establis 10000 19.96% NA progres 0.00 0.00 N
Capital fund Wuxi years 2024-11-22 0202024-
Enterprise hed s
Industry 068
(Limited
Group
Partnership)
Hubei
Changjiang
Weilai
New
Capital Energy
Internet
increase Industry In Announceme
of Own 2034-
Autolink 4800 9.64% Developme NA progres 0.00 0.00 N 2024-05-15 nt No.:2024-
vehicles fund 08-03
acquisit nt Fund s 038
service
ion Partnership
Enterprise
(Limited
Partnership
).etc
Four
enterprises
including Announceme
Intellig
Boyuan nt No.:2024-
ent New
Own (Shanghai) Long Comple 2024-05-15 039
WFSS percepti establis 21500 61.43% NA 0.00 0.00 N
fund Private term ted 2024-06-29 Announceme
on core hed
Equity nt No.:2024-
module
Fund 046
Manageme
nt Co. Ltd.Purifier
Wuxi In Announceme
s Acquisi 19， Own Long
WFLD 100% Industry NA progres 0.00 0.00 N 2024-10-25 nt No.:2024-
muffler tion 111.82 fund term
Group s 067
s etc.
126305
Total -- -- -- -- -- -- -- -- 0.00 0.00 -- -- --.11
Note: 1. Calculated and presented based on the midpoint of the RMB exchange rate in the interbank foreign exchange market at the
time of the company's initial disclosure
29WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
3. Major non-equity investment in progress in the reporting period
□ Applicable □ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable □Not applicable
In RMB
Curren
Book Cumul Profit
t Curren Book
Short Accou value ative and
Variet Code Initial gain/lo t Curren value
form nting at the fair loss in Accou
y of of invest ss of purcha t sales at the Capital
of measur beginn value the nting
securiti securiti ment fair se amoun end of Source
securiti ement ing of change Report subject
es es cost value amoun t the
es model the s in ing
change t period
period equity Period
s
Domes Measu Tradin
1992076756-81024
tic and 60084 rement 4267 g Own
SNAT 8000. 716.0 7013 241.8
foreign 1 at fair 525.87 financi fund
000304.007
stocks value al asset
Domes Miracl Measu Tradin
6933171073-6230210501
tic and 00200 e rement 1730 g Own
500.0900.03287458.9800.0
foreign 9 Autom at fair 358.96 financi fund
00100.0060
stocks ation value al asset
Domes Guolia Measu Tradin
12000--
tic and 60145 n rement 1084 1041 g Own
000.08920042828
foreign 6 Securit at fair 000.00 171.65 financi fund
0.00.35
stocks ies value al asset
-
28053148911443610501
103895955
Total 9500. -- 4616. 0.00 0.00 7872. 800.0 -- --
604.0056.48
0000480
0
Disclosure date of securities 2012-03-24
investment approval of the
Board 2013-06-04
(2) Derivative investment
□ Applicable □ Not applicable
There is no derivative investment during the reporting period.
5. Application of raised proceeds
□ Applicable □ Not applicable
There is no application of raised proceeds during the reporting period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable □ Not applicable
No major assets were sold during the reporting period.
2. Sales of major equity
□ Applicable □ Not applicable
30WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
IX. Analysis of the main controlling and participating companies
□ Applicable □ Not applicable
Main subsidiary and participating enterprises with over 10% influence on net profit of the Company
In RMB
Company Main
Type Register capital Total assets Net assets Operating revenue Operating profit Net profit
name business
After-
treatment
WFLD Subsidiary 502596300.00 6363817562.48 3206858703.10 3605692606.84 412811329.07 390475956.36
system
products
Fuel
management
WFJN Subsidiary 346286825.80 1518670799.77 1163614777.33 641568618.84 140016800.69 121876628.75
system
products
Fuel
Equity
management USD
RBCD participation 16458013255.90 9277308055.32 11262081616.84 2605691383.04 2720732465.47
system 382500000.00
enterprise
products
Equity Gasoline
Zhonglian
participation system 600620000.00 9373661532.45 9351917756.44 32829998.51 2268133070.61 2261333602.60
Electronics
enterprise products
Subsidiary acquired and disposed in the Period
? Applicable □ Not applicable
Company The methods of acquiring and disposing of
The impact on the overall production operation and performance
name subsidiaries during the reporting period
The Company is mainly engaged in the research development production and sales of
automotive parts products and intelligent in-vehicle devices. The establishment of this
WFLH Establish through investment
subsidiary has no significant impact on the company's overall production operation and
performance during the reporting period.The Company is mainly engaged in the research development production and sales of
intelligent in-vehicle devices. The establishment of this subsidiary has no significant
WFSS Establish through investment
impact on the company's overall production operation and performance during the
reporting period.Explanation of the situation of the main holding and participating companies
X. Structured subject controlled by the Company
□ Applicable □ Not applicable
XI. Prospect of future development of the Company
(I) Future development strategy of the Company
Based on the corporate vision of “to grow into a top global manufacturer of industrial components” during the 14th Five-Year
Plan period the company will continue to adhere to the strategic principles of “Internationalization Autonomy and Diversification”and accelerate the promotion of “Optimizing and Upgrading the Existing Core Business and Breaking Through and SecuringStrategic Emerging Businesses”. It will form a new strategic pattern of comprehensive development of four major business segments
“Energy Conservation and Emission Reduction” “Green Hydrogen Energy” “Smart Electric” and “Other Core Parts” striving to
achieve the strategic goals of doubling the scale and achieving a high level of profitability.
1．As the existing core business segment of the company Energy Conservation and Emission Reduction includes three major
business areas the high-pressure fuel injection system the after-treatment system and the turbocharging system. Positioned for new
growth actively promote business transformation and upgrading maintain its leading position in the industry and sustain organic
business growth. Under the general trend of low-carbon energy conservation seize the strategic opportunity of the upgrade of
emission regulations accelerate the expansion of the market for related products of conventional hybrid and plug-in hybrid vehicles
31WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
strengthen cooperation with joint venture brands and leading new automotive manufacturing forces and further improve the product
market share. For product development focus on efficient and energy-saving (including plug-in hybrid) fuel injection after-treatment
and turbocharging technologies as well as clean alternative fuels (such as natural gas methanol hydrogen etc.) enhance the R&D
capabilities of key technology products improve the forward engineering capabilities as well as the system integration and
application development capabilities. Consolidate and enhance the process operation capabilities and improve the cost and quality
control capabilities.
2．Green hydrogen energy is an important strategic direction for the company's business structure transformation. Focus on the
core parts of hydrogen fuel cells renewable energy hydrogen production and hydrogen storage businesses in the upstream and
midstream of the hydrogen energy industry chain builds core competitiveness actively seek industrial cooperation and achieve
large-scale business growth.
(1) For the core parts business of hydrogen fuel cells based on the currently acquired and established core material
technologies of the stack (membrane electrode graphite bipolar plate metal bipolar plate) and the core technical capabilities of key
BOP components accelerate the establishment and operation of organizational planning and promote the construction of three major
global bases to achieve small-scale market application.* Strengthen global engineering capabilities. Actively promote the construction of engineering centers in the Asia-Pacific
Europe and North America regions increase investment and continuously improve the engineering and technical level especially in
the R&D and application of product technologies and quickly achieve mass production of customer market projects.* Expand global business functions. Accelerate to build the capacity of business centers in the Asia-Pacific Europe and
North America regions strengthen the planning and coordination of the global market and operations achieve the sharing of strategic
resources among various centers and business segments and efficiently expand the market through coordination. Actively expand
international and domestic customers continuously deepen the cooperative relationship with strategic partners strategic customers
and major customers and promote large-scale market application.* Enhance global manufacturing capabilities. Accelerate to build capacity of manufacturing centers in the Asia-Pacific
Europe and North America regions. During the period from 2021 to 2025 achieve the small-scale mass production capacity of 8
million membrane electrodes 9 million graphite bipolar plates 4 million metal bipolar plates and 100000 key BOP components
globally. Among them the Asia-Pacific (China) region will achieve the production capacity of 4 million membrane electrodes 5
million graphite bipolar plates 2 million metal bipolar plates and 100000 key BOP components.* Strengthen strategic coordination and resource integration. Based on the platform of the Hydrogen Energy Business
Department strengthen the strategic coordination and resource integration of global businesses. Especially in consideration of the
construction of the Asia-Pacific base integrate the related businesses of the core parts of hydrogen fuel cells strengthen cooperation
with various strategic partners and establish the joint venture WFQL to conduct product application development supply chain
management manufacturing sales and services etc. facing the Asia-Pacific market mainly centered in China.
(2) For the renewable energy hydrogen production business based on the company's current core component technologies
such as membrane electrodes graphite/metal bipolar plates as well as the R&D testing and verification capabilities of PEM
electrolyzer stacks focus on cultivating and incubating the technologies of PEM electrolysis water hydrogen production system
equipment to achieve product market application.* Focus on implementing the demonstration line project. Complete the construction of the first and second phases of the
PEM electrolysis water hydrogen production demonstration line and obtain the capabilities of overall scheme design and
implementation services for electrolysis water hydrogen production.* Actively acquire key technical capabilities. Seek external technical and industrial investment cooperation opportunities
accelerate independent R&D and build key technical capabilities such as stack design system equipment design development and
integration. Form and incubate a number of small-power system equipment products in specific sub-sectors (hydrogen for
production) and develop high-power system equipment technologies and products suitable for energy storage and hydrogen refueling
stations.
32WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
* Expand market application projects. Vigorously expand market strive to achieve small-scale market application of small-
power system equipment actively participate in large-scale renewable energy hydrogen production demonstration projects contact
domestic leading enterprises in the industry and explore cooperation opportunities.
(3) For the hydrogen storage business based on the Sino-foreign joint venture cooperation model and relying on a close
partnership accelerate the construction of core capabilities form locally developed hydrogen storage product solution led by
technology and achieve product market application.* Achieve international collaborative development. Establish domestic and foreign joint venture companies form domestic
and foreign technical collaborative development and accelerate the formation of R&D and manufacturing capabilities for high-safety
hydrogen storage products.* Expand market application projects. Relying on the advantages of domestic customer channels comprehensively expand
users with high-safety and technologically advanced product solutions deeply participate in the scheme design and demonstration of
leading customers and form product advantages.
3．The intelligent electric vehicles segment focuses on four major business areas: the core parts of the electric drive system the
thermal management system and its core parts the core modules of intelligent sensing and the core parts inside the cabin builds core
competitiveness in the market technology and intelligent manufacturing and achieves business transformation development and
large-scale growth.
(1) The core parts business of the electric drive system based on the understanding on the R&D of automotive core parts
systems and high-end intelligent manufacturing capabilities expand the core parts business of the electric drive system and promote
large-scale market development.* Starting from motor shaft water jacket end cover and other products the core parts of the electric drive system are expanded
to other core parts enriching the product portfolio and forming the supply capacity of key products. Based on the plentiful practical
experience accumulated through cooperation with well-known domestic electric drive enterprises break through key new energy
vehicle enterprise customers especially high-end new forces establish in-depth strategic cooperation and promote the diversified
development of strategic customers.* Keep optimizing the layout and investment of electric drive products pay attention to the application of product technologies
such as in-wheel motors accelerate the verification and application of motors and controllers for multiple scenarios and support the
breakthrough of electric drive products in typical sub-scenarios such as cooling systemsteer-by-wire chassis and motion joint.
(2) For the thermal management system and its core parts business on the basis of electric oil pump rely on the platform
advantages of the company's group technology market and manufacturing fully promote the R&D and application of key
components such as integrated pumps valves heat exchangers and strategic products of the thermal management system and
further actively seek development in other application scenarios such as energy storage.* Establish in-depth strategic cooperation with high-end customers. With the VH overseas technology and product
accumulation acquired by the company actively penetrate the mature mainstream high-end customers in China and Europe complete
technical verification and form the first batch of product supply. Actively explore the global customer resources such as self-
developed electric drive/thermal management systems OEM and electric drive system integrators aggregate the channel resource
integration ability and break through key strategic customers.* Coordinate global R&D synchronization and actively expand product businesses. Promote the global resource planning and
layout build global synchronous R&D capabilities achieve global synchronous R&D coordination further expand product series
actively develop the development and supply capabilities of core components of the thermal management system-level solutions and
expand products such as integrated pumps valves and heat exchangers.* Enhance the global mass production supply capacity. Strengthen the capacity building of the global supply chain system in
Europe China etc. integrate the company's intelligent manufacturing genes and achieve large-scale production and supply
capabilities.
33WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(3) Core modules of intelligent sensing: For the core modules of intelligent sensing business strategically focus on
millimeter-wave radar provide customized radar module products and sensing solutions start from basic scenarios to cultivate
capabilities and aim at the high-end application market of autonomous driving.* Build core capabilities and achieve commercial breakthroughs. Set up a market-oriented independent business operation
team with industry competitiveness complete the development testing and production line construction of 3D/4D product platform
achieve commercial breakthroughs and in-depth cooperation with strategic partners to jointly promote large-scale commercial
applications.* Focus on sub-sectors and improve industrial scale. Focus on sub-scenarios such as trunk logistics integrate resources take
the local service capability as the core build large-scale industrialization capabilities and through the integration and support of
cooperation resources with strategic partners improve the commercialization ability and form an independent business unit for
commercial operation.* Transform the main scenarios and form system solution capabilities. Transform the resources accumulated in sub-scenarios
to the main scenarios establish the system supply capacity of the combination of radar and domain control form market
competitiveness and customer portfolios and improve the data closed-loop accumulation to have the service capability of multi-
sensor fusion solutions.
(4) Cabin core parts
In the aspect of cabin core parts business as for as the automotive seat is concerned adhere to the market strategy of
“paralleling development of both passenger and commercial vehicles” form the product differentiation competitive advantages of
high performance high quality high quality and high cost-effectiveness accelerate the realization of large-scale industrial
development and achieve the batch delivery of products for domestic independent leading brand models. Establish the systematic
design and testing capabilities of seat products improve the technological innovation ability develop towards networking and
intelligence and match the needs of intelligent cockpit scenarios. Besides the company will by virtues of cooperation with
intelligent cockpit partners step into the intelligent cockpit business field based on domain control technology and seek and expand
business opportunities related to the intelligent cockpit.
4．For industrial and other core parts business the company will continue to promote the transformation and upgrading of
businesses such as the hydraulic system and its core parts the core parts of the braking system intelligent manufacturing equipment
the aftermarket and trade and actively explore and layout cutting-edge technologies and markets that are in line with the company's
development strategic direction to achieve an increase in business volume. Among them for the hydraulic system and its core parts
business the main strategic development direction of the company jointly expand the mobile hydraulic and industrial hydraulic
markets through the establishment of a joint venture company with Bosch Rexroth. At the same time integrate the strategic resources
of the whole value chain process of both parties continuously build comprehensive competitiveness with higher cost advantages
better performance and faster response speed and continuously promote the strategic business layout and development of the
hydraulic system and its core parts. Continuously pay attention to and invest in the development of emerging businesses such as
humanoid robots increase the R&D and cooperation of key high-value-added parts and expand the in-depth matching development
application and promotion of robots in industrial scenarios. The company will continue to deepen the business plan budget
management and performance management system under the guidance of the strategy implement differentiated control and
governance achieve efficient business coordination among different segments accelerate the cultivation of strategic core talents and
comprehensively improve the operation and management capabilities during the strategic transformation period to meet the
company's medium and long-term strategic development needs.(II) Priority tasks for 2025
1. Strategic planning and layout improve the quality and efficiency of investment and cooperation
In terms of strategic planning and implementation promote the analysis and summary of the 14 th Five-Year Plan and launch the
work of the 15th Five-Year Plan; promote the implementation of strategic measures for the fuel cell segment; support the formulation
of the business plan for hydrogen cylinders and promote the implementation of the capacity building plan; in light of the new
34WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
development stages of the intelligent sensing and intelligent seat businesses revise the medium and short-term development goals
and paths of the businesses. Conduct strategic research and preliminary planning for new businesses such as the core parts of
humanoid robots and intelligent equipment.In terms of investment and cooperation management promote the implementation of the investment agreement of Voith joint
venture project and plan and promote the capital increase plan; promote the employee stock ownership of WFSS and plan and
promote the refinancing plan; empower and optimize the joint venture cooperation of WFAS and WFLH; actively search and
promote potential strategic projects and joint venture cooperation projects with scale benefits; promote the new period strategic
cooperation agreement with Bosch and key potential cooperation projects; conduct post-investment monitoring of key investment
projects; improve the performance capabilities of directors supervisors and senior executives and implement special training;
establish and optimize the overseas investment management system.
2. Steady development of traditional businesses rapid breakthrough in new business markets
In the energy conservation and emission reduction business for the high-pressure fuel injection system ensure the delivery of
common rail pump orders; promote the visit and promotion of VP pump terminal market; accelerate the expansion of new markets
for generators and micro-electronic controlled unit pumps; continuously improve the market share of mechanical pumps water
heaters and OES filter element accessories of key customers; expand the application projects and batch supply of methanol filters
biodiesel filters and GP electronic control customers. For the after-treatment system seize the hybrid market of independent
passenger vehicle brands reverse penetrate into joint venture brands and expand the cold-end muffler business; stabilize the market
position of natural gas products in the commercial vehicle market and expand diesel engine projects and market share. For the
turbocharging system ensure that the market share of four-cylinder gasoline turbochargers steadily increases and accelerate the
acquisition of projects from leading independent brands; obtain market customer projects for four-cylinder diesel variable nozzle
turbochargers; focus on the application fields of special turbochargers and expand the low-altitude economy market; accelerate the
acquisition and mass production of six-cylinder turbocharger projects for key customers in diesel and alternative fuel projects and
continuously improve the market share.In the green hydrogen energy business segment for the core parts of hydrogen fuel cells in terms of the core materials of the
stack improve the performance level of the membrane electrodes of fuel cell products and obtain customer projects; ensure the order
delivery of metal bipolar plate and single cell customer projects; focus on promoting the membrane electrodes and metal bipolar
plates to enter the supporting system of strategic customers. For key BOP components complete the development and delivery of
core parts products of fuel cells. As far as the renewable energy hydrogen production is concerned for PEM electrolysis water
hydrogen production system equipment strive to implement 3 kW-level and 100 kW-level electrolysis water hydrogen production
market projects and explore overseas market opportunities. For hydrogen production technology and application start the resource
integration of the overall solution for the hydrogen energy storage sub-sector; strengthen the publicity and marketing of the
electrolysis water hydrogen production market.In the intelligent electric vehicles for the core parts of the electric drive system ensure the delivery of motor shaft and water
jacket customers; expand new customers such as domestic new energy vehicles. For the thermal management system/core parts in
terms of the electric oil pump and its components ensure the delivery of strategic customers of the electric oil pump; promote the
implementation of new projects of multiple key customers; actively expand new customer project opportunities. For the core modules
of intelligent sensing ensure the mass production of the corner radar project of strategic customers and the acquisition of overseas
projects of cabin radars; obtain the fixed-point of the vehicle-road-cloud project and complete the batch delivery. For the core parts
inside the cabin ensure the delivery of existing projects of intelligent seat; promote the development of new projects for commercial
35WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
vehicle customers; strive to obtain new projects from leading passenger vehicle customers.In the industrial and other segment for the hydraulic system/core parts accelerate the acquisition of projects such as hydraulic
pumps and valve groups for forklifts of key customers; promote the on-board verification of customer projects for motor controllers;
cooperate in the development of B-samples of hydraulic suspensions. For the aftermarket and trade in terms of foreign trade focus
on exploring the Korean host market and the European machining market; steadily expand the sales scale of common rail accessories
in the international aftermarket and enhance the overseas influence of WF brand. In terms of domestic trade continue to strengthen
the cooperation with strategic customers in the aftermarket; continuously optimize the dealer system to ensure the legal and
compliant operation of the business.
3. Intensive research and layout of product technologies accelerated breakthroughs in new product R&D
Energy conservation and emission reduction: for the high-pressure fuel injection system accelerate the pre-research and
promotion of fuel injection products using clean alternative fuels such as hydrogen ammonia and methanol. Promote the
industrialization of natural gas direct injection products and verify the small-batch supply to key customers. Complete the
development and batch supply of CB6+ high-pressure pump product with a gear oil pump structure. For the after-treatment system
accelerate the promotion of the application of new materials and technologies in the exhaust system. Complete the development of
products for the fourth-stage fuel consumption of commercial vehicle exhaust systems. Continuously promote the pre-research and
development of post-treatment products for National Emission Standards VII and hydrogen internal combustion engines. For
turbocharging continuously strive to obtain passenger vehicle hybrid projects for four-cylinder turbochargers expand the products of
high-power variable nozzle turbochargers with a displacement of 2.5L and above. Realize mass production of key gasoline engine
projects. Accelerate the development of six-cylinder turbocharger products. Expand the application of the gas engine product
platform. Improve the stability and reliability of methanol products and expand customer applications.Green hydrogen energy business: for the core components of hydrogen fuel cells in terms of the core materials of the stack
accelerate the development of the second-generation membrane electrode products. For key BOP components complete the
development of B-samples of high-power electric water pumps and low-cost electronic thermostats. Complete the development of C-
samples of hydrogen pumps and pressure reducing valves. Complete the product certification of the bottle mouth valve. For
renewable energy hydrogen production in terms of PEM electrolysis water hydrogen production system equipment complete the
industrial production demonstration and project acceptance of the 100-kilowatt-level hydrogen production system. Complete the
development of C-samples of 100-kilowatt electrolyzer products. Launch the demonstration work for megawatt-level electrolysis
water hydrogen production products.Intelligent electric vehicles: for the thermal management system/core components in terms of the thermal management system
complete the development of C-samples of 48V electronic oil pump platforms of 120 watts and 600 watts. Develop low-cost 120-
watt electronic oil pump products. Strengthen the local DV testing capabilities and application development capabilities of electronic
oil pumps and expand customer applications. For the core modules of intelligent sensing complete R&D and mass production of 3D
corner radar products for clients. Promote the upgrading of 4D imaging radar technology. Accelerate the development of radar series
products and enrich the product portfolio.Industrial and other business: strive to complete the development of B-samples and customer verification of the suspension
motor pump project and complete the customer application development and small-batch supply of forklift motor controller.
4. Strictly grasp and control manufacturing quality and firmly build solid foundation for safe defense line
In terms of quality management continuously consolidate the construction of the quality culture and actively create an all -staff
quality culture atmosphere. Strengthen the risk control of quality throughout the entire process. Comprehensively promote the
36WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
vertical application and management maturity of quality valves error prevention Q11 and 8D methods. Continuously implement
quality improvement measures and build a communication platform for quality management where all parties can discuss and share
ideas. Strengthen the construction of echelons of personnel for solving quality problems. Operate a special quality improvement
review and verification mechanism at different levels and frequencies. In terms of manufacturing operation promote lean production
management optimize process planning deepen the continuous improvement of the system and enhance the output efficiency of the
entire life cycle of the manufacturing system. Implement total productive maintenance explore intelligent maintenance and repair
technologies and achieve the efficient operation of equipment throughout its life cycle. Promote the research of new processes and
the improvement of existing processes. In terms of intelligent manufacturing accelerate the full implementation of i-WPS blueprint
focus on promoting the integrated application of intelligent automation technologies in production inspection and logistics scenarios
to reduce manual labor. Continuously promote the application of the tool management system the spare parts module of the
equipment management system and the quality management system in the business divisions. Integrate artificial intelligence
technologies to explore and build applications for big data analysis in manufacturing. In terms of safety guarantee strengthen the
implementation of the main responsibilities of all employees in EHS (Environment Health and Safety): Organize EHS empowerment
guidance control and training. Consolidate the investigation and prevention management of major accident hazards. Introduce the
safety digital governance platform of Xinwu District. Strengthen the compliance control of hazardous waste.
5. Promote lean management and steadily improve operational efficiency
Financial management: In terms of tax management strengthen the ability to identify and respond to tax risks; continuously
improve the company’s tax planning; and enhance the control of electronic invoices issued from other regions. In terms of fund
management implement the rectification measures for internal control risks; and continuously promote the fund control of overseas
subsidiaries. In terms of financial control track and analyze the profitability of key customers and key products; and deepen the
financial management of overseas subsidiaries.Procurement and logistics management: In terms of procurement management steadily promote the application of the
procurement management platform; establish a differentiated supplier cooperation strategy; focus on the management of supplier
sourcing cultivation assistance and withdrawal and give priority to improving the comprehensive capabilities of suppliers for new
businesses; and increase the service intensity for new business segments. In terms of logistics management strengthen the pre-order
review; continuously carry out special handling of long-term sluggish materials and historical issues; continuously optimize the
information systems such as logistics visualization and warehousing management; and improve the coordination ability at the
planning end and the efficiency of on-site logistics operations.Human resources management: Precisely position the human resources development strategy; Build a diversified talent system
composed of international management talents innovative technical talents high-quality business talents and compound skilled
talents; Accelerate the introduction of talents for new businesses and their transformation and development; Continuously deepen the
capacity building of international talents formulate and implement a plan for the mutual exchange of overseas talents; Continue to
promote the construction of the “San Hang Yi Jiang” platform and formulate training plans for reserve manufacturing process
quality and high-skilled talents; Design a market-oriented incentive and restraint mechanism that reflects the strategic orientation.Information management: Promote the construction and promotion of application modules of the digital factory and achieve
comprehensive monitoring; Promote the application of process value mining technology to expand the coverage of business scenarios
at the manufacturing end and the supply chain end; Plan the architecture and promotion route of the group's digital quality
management platform and build the modules for incoming quality management and after-sales quality management. Conduct in-
depth research on technical benefits and data value deepen the application of data assets and integrate artificial intelligence and big
37WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
data applications; Promote the application of large language models to achieve generative question answering based on professional
knowledge bases; Promote the interconnection and integration of the global information infrastructure to assist in the construction of
the core systems of overseas business divisions.Administrative management: In terms of excellent operation promote the empowerment of the construction of the new business
organization system and comprehensively promote the extended management of institutional processes in overseas subsidiaries;
Continuously promote the deep integration of the business plan and the budget and focus on promoting the decomposition
implementation and monitoring of strategic objectives; Promote the functional optimization and coverage of the group project
management platform. In terms of logistics management deeply apply the smart park platform system to improve management
efficiency.(III) Possible risks and countermeasures
1. Risk related to macroeconomic and market
Currently the macroeconomic and market conditions are still complex and challenging with the automobile industry still facing
relatively high pressure. In case of a decline in demand from the automotive industry the production operation and profit level of the
Company will be affected to a certain extent.Countermeasures: The Company will constantly monitor macroeconomic and industry development trends consolidate its
existing business market presence actively expand new business and strive to improve its core competitiveness and overall anti-risk
capabilities.
2. Risk related to operation management and control
With the acceleration of the international layout of the Company and the expansion of the scope of strategic new business
especially in the field of new energy the management span is relatively large with potential operational management and investment
risks.Countermeasures: The Company will continuously improve and optimize internal management improve processes and further
regulate management and control operational risks; Reinforce the control of international business and accelerate the construction of
international talent team to satisfy the strategic development demands of the enterprise.
3. Risk related to raw material price fluctuation
The main raw materials of the Company include steel aluminum precious metals etc. of various grades the continuous
increase of their prices will pose the risk of cost increase to the Company.Countermeasures: The Company will actively improve its market forecasting capabilities plan production capacity in advance
and reasonably control raw material inventories to reduce the exposure to raw material price fluctuations while continuously
optimizing supply chain management strengthening the vertical integration capability of the industry chain and transferring part of
the risks through cost control measures and product price adjustments so as to reduce the impact of raw material price fluctuations on
performance.
4. Risk related to financial instruments
The major financial instruments of the Company include monetary funds structured deposits receivables investments in equity
instruments financial products borrowings payables etc. In the process of operation the Company is exposed to risks related to
financial instruments including credit risks market risks and liquidity risks.Countermeasures: Identify and analyze various risks exposed to the Company establish appropriate risk tolerance thresholds
and manage risks monitor various risks in a timely manner ensure that risks are controlled within limits minimize the negative
impact of risks on the operating performance of the Company and maximize the interests of shareholders and other investors.XII. Reception of investigation communication and interview during the reporting period
□Applicable □ Not applicable
38WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Reception Reception Reception Reception Reception Main content talked about Index of basic
time place mode object type Object and materials provided situation of research
In the period Interactive Answered 9 questions
Basic company
from Jan. 1 platform of Written online through the
Other Other information and view of
2024 to Dec. investor inquiry interactive platform
the market
31 2024 relationship for investor relations
In the period
Basic company 1039 telephone
from Jan. 1 Company
Telephoning Other Other information and view of communications with
2024 to Dec. tel.
the market the investors
312024
XIII. Implementation of market value management system and valuation enhancement plan
Whether the company established a market value management system or not
□ Yes □ No
Whether the company disclosed a plan to increase its valuation or not
□ Yes □ No
XIV. Implementation of the Action Plan for “Double Improvement of Quality and Return”
Does the company disclose Action Plan for “Double Improvement of Quality and Return”
□Yes □No
39WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section IV. Corporate Governance
I. Corporate governance of the Company
During the reporting period the Company earnestly implemented the Basic Internal Control Standards for
Enterprise and its guidance in strict accordance to the requirements of laws administrative regulations
department provisions and normative documents as the Company Law Securities Law Code of Corporate
Governance for Listed Companies Rules Governing the Listing of shares on Shenzhen Stock Exchange and
Guidelines on Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation
of Main board listed company continued to improve and enhance legal person governance structure and internal
control system thus to standardize its operation. The actual status of corporate governance complied with the
requirements of China Securities Regulatory Commission regulatory documents related to listing Corporation.During the reporting period in accordance with the relevant provisions of laws regulations and regulatory
documents and in combination with the actual situation of the company the company formulated or revised a
number of institutional documents including the Articles of Association the Independent Director System the
Independent Director Special Meeting System the Related Party Transaction Management System the Annual
Report Working Procedures of the Audit Committee the Annual Report Working Procedures of Independent
Directors the Measures for the Assessment of the Annual Business Performance of Senior Executives (Trial) the
Measures for the Compensation Management of Senior Executives (Trial) the Measures for the Management of
the Holding and Trading of the Company's Shares by Directors Supervisors and Senior Executives the Measures
for the Management of Information Disclosure Affairs the Management System for Inside Information and
Insiders and the working rules of each special committee of the board of directors. The company has been
continuously improving the relevant systems for corporate governance and promoting the construction of
processes and continuously enhancing the level of corporate governance.According to the Company Law Articles of Association and relevant laws and regulations the company
established a relatively complete organizational control architecture system. The company’s board of directors
executes the resolution of general meeting of stockholders takes charge of the company’s significant decisions
and takes responsible for the general meeting of stockholders; the company sets up the general manager according
to law to preside over the company’s daily production and operation and management organize and implement
the resolutions of the BOD and take responsible for the BOD; the company’s board of supervisors is the
company’s supervisory body takes responsible for behaviors of the directors and senior executives and the
supervise the company’s financial affairs. the BOD has four special committees including the strategy committee
remuneration committee audit committee and nominations committee. The company’s general meeting of
stockholders board of directors board of supervisors and management layer have clear rights and obligations
perform their own duties effectively check and balance scientifically make decisions coordinate operations and
lay a solid foundation for the company’s sustainable stable and healthy development.
40WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The company’s independent directors perform their duties and faithfully and conscientiously fulfill their
obligations in strict accordance with relevant regulations of Articles of Association the Independent Director
System and the Independent Director Special Meeting System and actively attend the board meetings and
shareholders' meetings understand and obtain relevant information before meetings; carefully consider each
motion and actively participate in the discussions and make recommendations. Seriously make independent
opinions and effectively protect the interests of the company and shareholders especially the minority
shareholders.The company further implements the Basic Norms of Enterprise Internal Control and its guidelines constructs the
internal control system in the company headquarters and major subsidiaries enhance the company’s management
and control level optimize the work flow improve the internal control system identify and control the
operational risks. Please see the detailed contents of 2024 Internal Control Evaluation Report on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.Whether is there any difference between the actual condition of corporate governance and relevant regulations
about corporate governance for listed company from CSRC or not
□ Yes □No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets personnel finance organization and businesses
1. Business: the company has a complete independent research and development procurement production and
sales systems the main business does not have horizontal competition with the controlling shareholders. The
business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor personnel and
salary management; there is no mixed operation and management with the controlling shareholders. The
company’s general manager vice general manager financial administrator secretary of the board and senior
executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete the property relations with the controlling
shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling
shareholders the duty and authority of the company’s shareholders’ meeting board of directors board of
supervisors and management level are clearly defined the internal management system can operate independently.
5. Finance: the company has set up an independent financial department established the independent financial
accounting system and financial management system opened the independent bank account and paid taxes
separately according to law.
41WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
III. Horizontal competition
□ Applicable □ Not applicable
IV. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
held during the reporting period
1. Annual shareholders’ general meeting during the reporting period
Ordinal number of Ratio of investor Date of
Type Date Resolution of meeting
meeting participation disclosure
Annual general meeting (Notice No.: 2024-041) published on
AGM 42.73% 2024-05-17 2024-05-18
of 2023 Juchao Website(www.cninfo.com.cn)
1st extraordinary general Extraordinary (Notice No.: 2024-060) published on
41.76%2024-09-202024-09-21
meeting of 2024 general meeting Juchao Website(www.cninfo.com.cn)
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting rights
restore
□ Applicable □Not applicable
V. Directors supervisors and senior officers
1. Basic information
Amount Amount
Start End Shares Shares Reasons
of shares of shares
dated date held at Other held at for
Working increased decreased
Name Gender Age Title of of period- changes period- increase or
status in this in this
office office begin (share) end decrease of
period period
term term (Share) (Share) shares
(Share) (Share)
Yin Currently 2024- 2027-
Male 44 Chairman 0 0
Zhenyuan in office 05-17 05-16
Kirsch Vice Currently 2021- 2027-
Male 63 0 0
Christoph chairman in office 05-20 05-16
Currently 2025- 2027- The
Director
in office 03-17 05-16 Company
bought
back and
canceled
Rong Bin Male 49 196000 84000 112000 the
Currently 2020- 2027-
Vice GM restricted
in office 05-28 05-16
shares
which were
granted but
not lifted
Currently 2023- 2027-
Director
in office 06-19 05-16
Feng Currently 2023- 2027-
Male 55 Vice GM 65192 65192
Zhiming in office 06-01 05-16
Financial Currently 2024- 2027-
principal in office 05-17 05-16
Xu Currently 2024- 2027-
Male 61 Director 0 0
Daquan in office 05-17 05-16
Zhao Currently 2021- 2027-
Female 43 Director 0 0
Hong in office 05-20 05-16
Huang Currently 2021- 2027-
Male 40 Director 0 0
Rui in office 05-20 05-16
Xing Min Male 70 Independent Currently 2021- 2027- 0 0
42WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Director in office 05-20 05-16
Feng Independent Currently 2021- 2027-
Female 51 0 0
Kaiyan Director in office 05-20 05-16
Pan Independent Currently 2021- 2027-
Male 53 0 0
Xinggao Director in office 05-20 05-16
Yang Independent Currently 2024- 2027-
Male 57 0 0
Fuyuan Director in office 05-17 05-16
Chairman of
Ma the Currently 2021- 2027-
Male 50 0 0
Yuzhou Supervisory in office 05-20 05-16
Committee
Currently 2024- 2027-
Lu Qun Male 52 Supervisor 0 0
in office 09-20 05-16
Liu Currently 2021- 2027-
Female 39 Supervisor 0 0
Songxue in office 05-20 05-16
Currently 2020- 2027-
Xu Sheng Male 50 Vice GM 196000 84000 112000 The
in office 05-28 05-16
Company
Vice GM
Liu Currently 2020- 2027- bought
Male 49 Secretary of 196000 84000 112000
Jinjun in office 05-28 05-16 back and
the BOD
canceled
Chief Currently 2020- 2027-
Li Gang Male 54 196000 84000 112000 the
engineer in office 05-28 05-16
restricted
Wang Leave 2020- 2024-
Male 58 Chairman 300781 120000 180781 shares
Xiaodong office 05-28 05-17
which were
Vice
Xu Leave 2020- 2025- granted but
Male 53 chairman 258000 105000 153000
Yunfeng office 05-28 02-26 not lifted
GM
Chen Leave 2012- 2024-
Male 63 Director 0 0
Yudong office 03-07 05-17
Independent Leave 2018- 2024-
Yu Xiaoli Female 61 0 0
Director office 06-27 05-17
Leave 2020- 2024-
Chen Ran Male 52 Supervisor 1000 1000
office 05-28 09-20
Total -- -- -- -- 1408973 561000 847973 --
During the reporting period whether there was any departure of directors and supervisors and dismissal of senior executives or not
?Yes □No
1. During the reporting period Wang Xiaodong Chairman of the Company left his position due to the expiration of his term of
office and no longer served as the Chairman of the Company; Chen Yudong director of the Company left his position due to the
expiration of his term of office and no longer served as a director of the Company; Yu Xiaoli independent director of the Company
left her position due to the expiration of her term of office and no longer served as an independent director of the Company.
2. On August 22 2024 the Company disclosed the Announcement on the Resignation of Supervisors and the Election of New
Supervisors stating that Mr. Chen Ran applied to resign from the position of supervisor of the 11 th session of Supervisory Committee
due to work adjustments.
3. On February 28 2025 the Company disclosed the Announcement on Changes in Directors and Senior Executives. Mr. Xu
Yunfeng applied to resign from his positions as vice chairman director GM and the titles in the special committee of the BOD due
to work adjustments.Changes of directors supervisors and senior executives
?Applicable □ Not applicable
Name Title Type Date Reason
Yin Zhenyuan Chairman Be elected 2024-05-17 General election
Kirsch Christoph Vice Chairman Be elected 2024-05-17 General election
Xu Yunfeng Vice Chairman Be elected 2024-05-17 General election
Rong Bin Director Be elected 2025-03-17 Supplementary election of directors
Feng Zhiming Director Be elected 2024-05-17 General election
Xu Daquan Director Be elected 2024-05-17 General election
Zhao Hong Director Be elected 2024-05-17 General election
Huang Rui Director Be elected 2024-05-17 General election
Xing Min Independent Director Be elected 2024-05-17 General election
Feng Kaiyan Independent Director Be elected 2024-05-17 General election
Pan Xinggao Independent Director Be elected 2024-05-17 General election
Yang Fuyuan Independent Director Be elected 2024-05-17 General election
43WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Chairman of the board of Be elected
Ma Yuzhou 2024-05-17 General election
supervisor
Lu Qun Supervisor Be elected 2024-09-20 Supplementary election of supervisors
Liu Songxue Supervisor Be elected 2024-05-17 General election
Xu Yunfeng GM Be employed 2024-05-17 General election
Feng Zhiming Vice GM and financial director Be employed 2024-05-17 General election
Xu Sheng Vice GM Be employed 2024-05-17 General election
Liu Jinjun Vice GM Secretary of the BOD Be employed 2024-05-17 General election
Li Gang Chief engineer Be employed 2024-05-17 General election
Left office upon Leave office upon the expiration of the
Wang Xiaodong Chairman 2024-05-17
expiration of term term of office
Left office upon Leave office upon the expiration of the
Chen Yudong Director 2024-05-17
expiration of term term of office
Left office upon Leave office upon the expiration of the
Yu Xiaoli Independent Director 2024-05-17
expiration of term term of office
Chen Ran Supervisor Left office 2024-09-20 Resign
Xu Yunfeng Vice chairman GM Left office 2025-02-26 Resign
2. Post-holding
Professional background major working experience and present main responsibilities in Company of directors supervisors and
senior executive
Mr. Yin Zhenyuan born in August 1980 is a Chinese citizen without permanent overseas residency. He is a member of the
Communist Party of China holds a master's degree and is an economist. He once served as the vice president and a member of the
Party Committee of Wuxi Industry Development Group Co. Ltd. deputy mayor of Binhu District Wuxi City deputy head of the
Preparatory Group of the Administration Bureau of Wuxi Liangxi Science and Technology City the proposed Chairman of Wuxi
Liangxi Science and Technology City Construction and Development Company (under preparation) the secretary of the party
committee and chairman of the board of directors of Wuxi Liangxi Science and Technology City Development Group Co. Ltd.deputy director and a member of the Party Committee of the Administration Bureau of Wuxi Liangxi Science and Technology City.Currently he serves as the president and deputy secretary of the party committee of Wuxi Industry Development Group Co. Ltd.and the secretary of the party committee and the chairman of the company.Mr. Kirsch Christoph born in October 1961 German nationality Master’s degree. He previously served as R&D engineer
product manager and key account sales manager of the diesel system division in Robert Bosch Group GM of Bosch Automotive
Diesel System Co. Ltd senior vice president of the commercial vehicle business Bosch Diesel System Division the executive vice
president of production & quality in United Automotive Electronic Systems Co. Ltd(UAES) executive vice president of production
& quality gasoline system division of Bosch Group the executive vice president of commercial vehicle & off-road business the
solution business division of RBCD representing the Bosch Automotive and Intelligent Mobility Asia Pacific Board. Currently he
serves as BMS in Robert Bosch Group and the vice chairman of the Company.Mr. Rong Bin born in December 1975 Chinese nationality and no permanent residence abroad member of the CPC holds a
bachelor's degree and is an assistant engineer. He joined the Company in July 1998 and worked as vice plant manager of the
company's plunger branch deputy manager of the common rail component company deputy manager and manager of the first
manufacturing department of the company's mechanical system business department assistant to the general manager deputy general
manager and general manager of the company's mechanical system business department and general manager of the automotive
diesel system division and general manager of the mechanical system division. He currently serves as the deputy GM of the
Company.Mr. Feng Zhiming born in November 1969 Chinese nationality member of the CPC Master’s degree in Business
Administration and a senior engineer. He has served as the deputy manager of the Power Branch of Wuxi Weifu Group Co. Ltd. the
Director and Deputy Chief Engineer of the Engineering Department of Wuxi Weifu Group Co. Ltd. the Director of the Engineering
Procurement Department of WFHT the General Manager of WFMA the general manager and Chairman of Wuxi Xidong
44WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Technology Industrial Park Co. Ltd. the general manager of Wuxi Hongyuan Electromechanical Technology Co. Ltd. the Office
Director of Wuxi Industry Development Group Co. Ltd and the Chairman and General Manager of Jiangsu Taiji Industrial New
Materials Co. Ltd. He is currently the director and deputy general manager of the company.Mr. Xu Daquan born in October 1963 is a U.S. citizen and holds a doctorate degree. Since September 2010 he has served as
the executive vice president of Bosch (China) Investment Co. Ltd. responsible for Bosch's automotive business in China. Currently
he serves as the president of Bosch (China) Investment Co. Ltd. and a director of the company.Ms. Zhao Hong born in September 1981 is a Chinese citizen without permanent residency abroad. She is a member of the
Communist Party of China holds bachelor's degree and is an accountant. Previously served as an accountant at Wuxi Tianyi
Membrane Technology Application Equipment Factory a project auditor at Wuxi Fangzheng Taxation Firm deputy director and
minister of the Audit and Supervision Department of Wuxi Industrial Development Group Co. Ltd. deputy secretary of the
Discipline Inspection Commission secretary of the BOD and director of the office. The current chief operating officer of Wuxi
Industrial Development Group Co. Ltd. and a director of the company.Mr. Huang Rui born in December 1984 Chinese nationality and no permanent residence abroad member of the CPC Master’s
degree. He worked as the product manager of Shangde Power senior project manager of Wuxi Merchants Bureau manager of the
Ernst & Young Huaming CPA (Shanghai) deputy GM municipal environment division of Wuxi Guolian Environmental Energy
Group the vice president of investment development department vice president of investment development department II (presiding
over the work) vice president of investment banking of Wuxi Industry Development Group Co. Ltd. Now he is the GM of
investment banking department of Wuxi Industry Development Group Co. Ltd and the director of the Company.Mr. Xing Min born in January 1954 Chinese nationality and no permanent residence abroad member of the CPC Bachelor’s
degree a professor-level senior engineer. He worked as the secretary of the Party Committee of China Heavy Machinery Corporation
secretary of the Party Committee and GM of China Machine Tool Corporation. Now he is the executive vice president of China
Internal Combustion Engine Industry Association the independent director of Changchai Company Limited the director of Anhui
Aikelan Environmental Protection Co. Ltd and the independent director of the Company.Ms. Feng Kaiyan born in October 1973 Chinese nationality and no permanent residence abroad member of the CPC a
Bachelor’s degree Certified Public Accountant and senior accountant. She worked as the accounting for Wuxi Production Materials
Corporation and Wuxi Geological & Mining Information Service Center. Currently she is the chief accountant of Wuxi Donghua
Accounting Firms Co. Ltd the responsible person of the Sunan Branch Jiangsu Fuhua Engineering Cost Consulting Co. Ltd the
independent director of yuancheng Cable Co. Ltd the independent director of Kangxin New Material Co. Ltd the president of Wuxi
Bankruptcy Administrator Association and the independent director of the Company.Mr. Pan Xinggao born in June 1971 Chinese nationality and no permanent residence abroad a Bachelor’s degree and a lawyer.He served as a lawyer of Shandong Jinan Quancheng Laws Firm a lawyer of Beijing Zhongyin Law Firm and lawyer of Beijing
Zhonglun Jingtong Laws Firm. Now he is the Partner of Beijing Tongshang Law Firm the independent director of Huarui Traffic
Technology Co. Ltd and independent director of the Company.Mr. Yang Fuyuan born in October 1967 is a Chinese citizen without permanent overseas residency. He is a member of the
Communist Party of China holds a doctorate degree and is a professor. He has been teaching at Tsinghua University since 1994 and
once served as deputy head of the Department of Automotive Engineering at Tsinghua University deputy dean of the School of
Vehicle and Mobility and other positions. Currently he is a professor at the School of Vehicle and Mobility Tsinghua University
deputy director of the Teaching Committee of the National Institute of Excellent Engineers director of the Chinese Society of
Automotive Engineers deputy director of the Renewable Energy Power Committee of the Chinese Renewable Energy Society
Member of the Beijing Hydrogen Energy Quality Standardization Committee and an independent director of the company.Mr. Ma Yuzhou born in September 1974 Chinese nationality and no permanent residence abroad member of the CPC a Master
graduate and an engineer. He worked as the craftsman in the Company’s assembly branch assistant secretary of the mission
committee of the Company deputy secretary of the Company’s fuel injection branch deputy director of the Company’s Party
Committee Work Dept. plunger branch deputy plant manager head treatment plan manager director of oil pump branch plant
assembly plant manager deputy GM of WFTT deputy GM and GM of the Company’s mechanical system division and director of
45WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
organization & personnel dept. of the Company. Now he is the deputy secretary of the Company’s Party Committee and chairman of
the Supervisory Committee of the Company.Mr. Lu Qun born in November 1972 is a Chinese citizen without permanent overseas residency. He is a member of the
Communist Party of China holds a bachelor's degree and is a senior engineer. He once served as a technician in the Power Branch of
the company a planner in the Equipment Branch deputy head of the Equipment Branch project manager of the Engineering
Department deputy head of the Quality Department head of the Quality Department of the Mechanical System Business Division
head of the Assembly Branch of the Mechanical System Business Division deputy general manager of the Automotive Electronics
and Equipment Technology Business Division and general manager of the Intelligent Equipment Business Division. Currently he
serves as the head of the Manufacturing Quality Department of the company and a supervisor of the company.Ms. Liu Songxue born in July 1985 Chinese nationality and no permanent residence abroad member of the CPC a Bachelor’s
degree and senior engineer. She worked as the product testing engineer and product design engineer in technical center of the
Company. Currently she is the secretary general of the Science & Technology Association of the Company and Supervisor of the
Company.Mr. Xu Sheng born in March 1974 Chinese nationality and no permanent residence abroad member of the CPC graduate
degree holds a master’s degree and a senior engineer. He once served as secretary of the party committee of the company’s party
committee work department deputy director of the office of the general manager of the company deputy secretary of the party
branch and deputy factory manager of the company’s injector parts branch HSE manager of Bosch Automotive Diesel System Co.Ltd. senior manager of BPS director of MOE5 and assistant general manager of the company. He is currently the deputy GM of the
Company.Mr. Liu Jinjun born in September 1975 Chinese nationality and no permanent residence abroad member of the CPC holds a
bachelor’s degree and a master’s degree and is an engineer. He once served as the manager of the personnel administration
department and technical sales manager of Wuxi Weifu Automotive Diesel System Co. Ltd. the director of the company's human
resources department supervisor of the seventh and eighth of the Supervisory Committee of the Company head of the corporate
strategy & new business department and head of market development department of the Company. He is currently the deputy GM
and secretary of the Board of the Company.Mr. Li Gang born in November 1970 Chinese nationality and no permanent residence abroad member of the public interest
Party holds a bachelor’s degree and a master’s degree and a full senior engineer. He once served as the product design engineer of
the company's technology center the production supervisor of the production department and the technical director of the technical
sales department of Wuxi Weifu Automotive Diesel System Co. Ltd. the deputy director of the company's technology center deputy
dean of the company's engineering technology research institute and the director of the technology center and the standing deputy
director (deputy chief engineer) of the company's technology center. He is currently the chief engineer of the Company.Post-holding in shareholding entities
? Applicable □ Not applicable
Received
Name of shareholding Position in Start date of End date of
Name remuneration from
entities shareholding entities office term office term
shareholders (Y/N)
Kirsch Robert Bosch
BMS 2023-04-01 Y
Christoph Company
Bosch (China)
Xu Daquan President 2024-01-01 Y
Investment Ltd.Zhao Hong Wuxi Industry Group Operation director 2021-04-19 Y
GM of investment
Huang Rui Wuxi Industry Group 2021-05-01 Y
banking department
Post-holding in other entities
□Applicable □ Not applicable
46WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Received
Start date of End date of remuneration
Name Name of other entities Position in other entities
office term office term from other
entities (Y/N)
China Internal Combustion
Xing Min Executive vice president 2008-08-01 Y
Engine Industry Association
Anhui Aikelan Environmental
Xing Min Director 2021-11-22 Y
Protection Co. Ltd
Wuxi Donghua Accounting
Feng Kaiyan Chief accountant 1998-10-01 Y
Firms Co. Ltd
Jiangsu Fuhua Engineering Cost
Feng Kaiyan Consulting Co. Ltd - Sunan Principal 2020-07-16 N
Branch
Feng Kaiyan Yuancheng Cable Co. Ltd. Independent Director 2019-11-21 2025-11-16 Y
Feng Kaiyan Kangxin New Material Co. Ltd Independent Director 2023-04-04 2026-01-16 Y
Wuxi Bankruptcy Administrator
Feng Kaiyan President 2024-01-07 N
Association
Pan Xinggao Beijing Tongshang Law Firm Partner 2007-10-01 Y
Huarui Transportation
Pan Xinggao Independent Director 2022-02-26 Y
Technology Co. Ltd
Yang Fuyuan Tsinghua University Professor 2012-10-01 Y
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors supervisors and
senior executives during the reporting period
□ Applicable □ Not applicable
3. Remuneration of directors supervisors and senior executives
Decision-making procedures recognition basis and payment for directors supervisors and senior executives
1. Decision-making procedure: the remuneration and assessment committee of the Board shall make proposals according to
completion status of the major annual targets the implementation of which is subject to submission to and approval by the Board;
2. Determination reference: remuneration of directors supervisors and senior executives who receive remuneration from the
Company is determined based on the Annual Operating Results Assessment Measures of Senior Executives and Remuneration
Management Rules of Senior Executives as approved at the shareholders’ general meetings. Allowance for independent directors of
the Company is determined by shareholders’ general meeting which is set at 150000 yuan per person/year (tax included) and the
traveling expense occurred by them arising from attending the Company’s board meeting general meetings and relevant activities
will be reimbursed according to the actual conditions.
3. Actual payment: remuneration of directors supervisors and senior executives who receive remuneration from the Company
comprises of basic annual pay and performance related annual salary. The basic annual pay shall be determined based on specific
positions and paid monthly while the performance related salary is determined and paid based on satisfaction of the various
performance indicators since it is directly linked with the economic benefits of the Company. Remuneration of independent directors
will be paid on a quarterly basis.Remuneration of directors supervisors and senior executives in reporting period
In ten thousand yuan
Total remuneration Whether remuneration
obtained from the obtained from related
Name Title Gender Age Post-holding status
Company (before party of the Company
taxes) or not (Y/N)
Yin Currently in office
Male 44 Chairman 0 Y
Zhenzhen
Kirsch Currently in office
Male 63 Vice chairman 0 Y
Christoph
Director vice GM Currently in office
Rong Bin Male 49 (Acting as general 129 N
manager)
47WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Feng Currently in office
Male 55 Director vice GM 127 N
Zhiming
Xu Daquan Male 61 Director Currently in office 0 Y
Zhao Hong Female 43 Director Currently in office 0 Y
Huang Rui Male 40 Director Currently in office 0 Y
Xing Min Male 70 Independent Director Currently in office 15 N
Feng Currently in office
Female 51 Independent Director 15 N
Kaiyan
Pan Currently in office
Male 53 Independent Director 15 N
Xinggao
Yang Currently in office
Male 57 Independent Director 10 N
Fuyuan
Chairman of Currently in office
Ma Yuzhou Male 50 127 N
supervisory board
Lu Qun Male 52 Supervisor Currently in office 61 N
Liu Currently in office
Female 39 Supervisor 23 N
Songxue
Xu Sheng Male 50 Vice GM Currently in office 123 N
Vice GM Secretary Currently in office
Liu Jinjun Male 49 127 N
of the BOD
Li Gang Male 54 Chief engineer Currently in office 129 N
Wang Left office
Male 58 Chairman 83 N
Xiaodong
Chen Left office
Male 63 Director 0 Y
Yudong
Yu Xiaoli Female 61 Independent Director Left office 5 N
Chen Ran Male 52 Supervisor Left office 57 N
Xu Left office
Male 53 Vice GM chairman 93 N
Yunfeng
Total -- -- -- -- 1139 --
Description of other status
□Applicable □ Not applicable
VI. Responsibility performance of directors during the reporting period
1. Meetings held by the BOD during the reporting period
Date of Disclosure
Meeting Meeting resolutions
meeting date
The 22nd meeting of 10th The Notice of the Resolution of 22nd Meeting of 10th Session of the
2024-03-05
session of the BOD BOD (announcement-free according to relevant regulations)
The Notice of the Resolution of 23rd Meeting of 10th Session of the
The 23rd meeting of 10th
2024-04-15 2024-04-16 BOD (Notice No.: 2024-007) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The 24th meeting of 10th The Notice of the Resolution of 24th Meeting of 10th Session of the
2024-04-24
session of the BOD BOD (announcement-free according to relevant regulations)
The Notice of the Resolution of 25th Meeting of 10th Session of the
The 25th meeting of 10th
2024-05-14 2024-05-15 BOD (Notice No.: 2024-036) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 1st Meeting of 11th Session of the BOD
The 1st meeting of 11th
2024-05-17 2024-05-18 (Notice No.: 2024-042) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 2nd Meeting of 11th Session of the BOD
The 2nd meeting of 11th
2024-08-06 2024-08-08 (Notice No.: 2024-047) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 3rd Meeting of 11th Session of the BOD
The 3rd meeting of 11th
2024-08-20 2024-08-22 (Notice No.: 2024-051) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
48WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The Notice of the Resolution of 4th Meeting of 11th Session of the BOD
The 4th meeting of 11th
2024-10-23 2024-10-25 (Notice No.: 2024-064) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
2. Attendance of directors at board meetings and shareholders’ general meetings
Attendance of directors to board meeting and shareholders’ general meeting
Times of Board Times of Times of
Times of Absence for two
meeting supposed Times of attending the Board Times of attend the
Director entrusted consecutive
to attend in the presence Meeting by absence general
presence times (Y/N)
reporting period communication meeting
Yin
4 1 3 N 1
Zhenyuan
Kirsch
8 2 6 N 2
Christoph
Feng
8 3 5 N 2
Zhiming
Xu
4 1 3 N 1
Daquan
Zhao
8 2 6 N 2
Hong
Huang Rui 8 2 6 N 2
Xing Min 8 2 6 N 2
Feng
8 3 5 N 2
Kaiyan
Pan
8 2 6 N 2
Xinggao
Yang
4 1 3 N 1
Fuyuan
Wang
4 2 2 N 1
Xiaodong
Yu Xiaoli 4 1 3 N 1
Chen
4 0 4 N 1
Yudong
Xu
8 3 5 N 2
Yunfeng
Explanation of not attending the board meeting in person for two consecutive times: Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes □ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation on responsibility performance of directors
The opinions from directors have been adopted
□ Yes □ No
Director’s statement to the Company that a proposal has been or has not been adopted
During the reporting period all the directors of the Company were diligent and conscientious carried out their work in strict
accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange as well
as the Articles of Association the Rules of Procedure for the BOD and other systems and paid close attention to the Company’s
standardized operation and business condition put forward relevant opinions on the Company’s major governance and operation
decisions according to the actual situation of the Company form a consensus after full communication and discussion and supervise
49WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
and promote the implementation of the resolutions of the BOD ensure scientific timely and efficient decision-making and maintain
the legitimate rights and interests of the Company and all shareholders.VII. Special committees under the BOD during the reporting period
Specific
Number
Important Other circumstances
Committee of Date of
Members Meeting content comments and performance of the
name meeting meeting
suggestions made of duties
s held objection (if
applicable)
The Strategy
Committee verified
and deliberated on
Wang the matters strictly
Xiaodong Deliberated the in terms of the
The 10th
Kirsch Strategic Vision Rules of Work of
session of 2024-
Christoph 1 of the Company’s Strategy Committee None None
Strategy 04-15
Xu Yunfeng Future of the Board and
Committee
Xing Min Development relevant laws and
Yu Xiaoli regulations
relevant proposals
are unanimously
agreed.
1. Deliberated
the Proposal
Report on
Remuneration
Assessment for
Senior
Executives and
Payout for year
of 2021;
2. Deliberated the
The Remuneration
Proposal on Buy-
Committee verified
back and
and deliberated on
Cancellation of
the matters strictly
the Restricted
The 10th in terms of the
Stocks Partially
Session of Yu Xiaoli Rules of Work of
Granted under
Remuneration Feng 2024- Remuneration
1 2020 Restricted None None
and Kaiyan 04-15 Committee of the
Stock Incentive
Assessment Huang Rui Board and relevant
Plan
Committee laws and
3. Deliberated the
regulations
Proposal on
relevant proposals
Revising the
are unanimously
Management
agreed.Measures for
Remuneration of
Senior
Executives
4. Deliberated the
Proposal on
Revising the
Annual
Performance
Assessment
50WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Method for
Senior
Executives
5. Deliberated the
Proposal on
Allowance of
Independent
Director
1. Deliberated
2023 Annual
Report and its
Abstract
2. Deliberated
2023 Financial
Settlement
Report The Audit
3. Deliberated Committee verified
Summary Report and deliberated on
of 2023 Audit the matters strictly
2024- Work in terms of the
The 10th Feng
04-15 4. Deliberated the Rules of Work of
session of Kaiyan Pan
2 Proposal on Audit Committee of None None
Audit Xinggao
Revising the the Board and
Committee Zhao Hong
Criteria for relevant laws and
Identifying regulations
Internal Control relevant proposals
Defects are unanimously
5. Deliberated agreed.
2023 Internal
Control
Evaluation
Report
1. Deliberated
2024-
2024 1st Quarter
Report
The Nominating
1. Deliberated the
Committee verified
Proposal on Non-
and deliberated on
Independent
the matters strictly
Director
in terms of the
Candidates for
Rules of Work of
The 10th Pan Xingao the Election of
Nominating
session of Xing Min 2024- the BOD
1 Committee of the None None
Nominating Chen 04-15 2. Deliberated the
Board and relevant
Committee Yudong Proposal on
laws and
Independent
regulations
Director
relevant proposals
Candidates for
are unanimously
the Election of
agreed.the BOD
1. Deliberated the The Nominating
Proposal on Committee verified
The 11th Appointing the and deliberated on
Xing Min
session of 2024- General Manager the matters strictly
Xu Daquan 1 None None
Nominating 05-17 of the Company in terms of the
Yang Fuyuan
Committee 2. Deliberated the Rules of Work of
Proposal on Nominating
Appointing Committee of the
51WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Senior Board and relevant
Executives such laws and
as Vice General regulations
Manager of the relevant proposals
Company are unanimously
3. Deliberated the agreed.
Proposal on
Appointing the
Secretary of the
BOD of the
Company
1. Deliberated the
Proposal on
Appointing
2024- Senior
05-17 Executives such The Audit
as Vice General Committee verified
Manager of the and deliberated on
Company the matters strictly
1. Deliberated the in terms of the
The 11th Feng
Full Text and Rules of Work of
session of Kaiyan Pan
3 Abstract of the Audit Committee of None None
Audit Xinggao
Company's 2024 the Board and
Committee Zhao Hong
2024- Half Year Report relevant laws and
08-19 2. Deliberated the regulations
Proposal on relevant proposals
Appointing Audit are unanimously
Institutions for agreed.
2024
1. Deliberated the
2024-
2024 3rd Quarter
Report
VIII. Works of Supervisory Committee
Whether the Supervisory Committee discovered any risks in the company during its supervisory activities during the reporting period
or not
□ Yes □ No
The Supervisory Committee has no objections to the supervisory matters during the reporting period.IX. Particulars of workforce
1. Number of employees professional composition and education background
The total number of current employees of the parent company at year end (person) 2566
The total number of current employees of main subsidiaries at year end (person) 3295
The total number of current employees of at year end (person) 5861
The total number of current employees to receive pay (person) 5863
Retired employee’ s expenses borne by the parent company and main subsidiaries (person) 2
Professional composition
Category of professional composition Number of professional composition(person)
Production personnel 3314
Sales personnel 175
52WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Technical personnel 1555
Financial personnel 102
Administrative personnel 715
Total 5861
Education background
Category of education background Numbers(person)
Master degree and above 592
Undergraduate 1850
Junior college 1102
Technical secondary school 434
High school 499
Other 1384
Total 5861
2. Remuneration policy
The company further improves its performance management and salary management system closely aligns with the company's
strategy and business plan fully leverages the guiding and driving role of goals closely links the total salary with the company's
operating results and fully leverages incentive effectiveness. Fully implement contractual management with 100% performance
targets signed by the management team and a strong correlation between annual revenue and performance completion. Meanwhile
the company further leverages the role of incentive funds strengthens the promotion and incentive efforts of major innovation and
development projects encourages patent applications and plays a positive role in promoting the achievement of the company's
strategic goals. The company pays social insurance for all employees and continues to implement employee pension and medical
accident commercial insurance to maximize employee motivation and creativity so as to provide talent security for the realization of
the company's strategy.
3. Training plan
The company further focused on empowering talents to drive business development and enhancing the cultivation of talent.Through the “San Hang Yi Jiang” talent development system the company improved employee efficiency. The “Special Program forMiddle and Young Cadres Capacity-Building” combines training and practical experience focusing on a business-oriented approach
to comprehensively enhance the business skills and overall quality of cadres. Furthermore the company continued to implement its
international talent strategy gradually developing international talent capabilities exploring global talent development models and
promoting business English training and competitions. It also fostered overseas talent exchange and explores international scientific
research collaboration and advanced talent development building a global talent growth path. At the same time the company has
launched the “Frontline Talent Capacity Building Program” and the “Master Craftsman Class” for high-skilled personnel optimizing
the allocation and enhancement of traditional business talents in line with strategic business development. By continuously
improving the talent resource layout and refining the core team structure the company enhanced personnel quality and strengthened
Weifu’s core competitiveness.
4. Labor outsourcing
□ Applicable □Not applicable
X. Profit distribution plan and transfer of capital reserve into share capital
Formulation implementation and adjustment of profit distribution policy in particular the cash dividend policy during the reporting
53WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
period
□ Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations of Articles of Association.
2. During the reporting period the Company implemented the profit distribution for year of 2023 based on the shares which exclude
the buy-back shares on buy-back account (25000000 A-share from total share capital 996986293 shares distributed 10 yuan (tax
included) cash dividend for every 10 shares held without capitalization from capital reserves. The plan was completed in June 2024.
3. During the reporting period the Company implemented the mid-term profit distribution for year of 2024 based on the shares
which exclude the buy-back shares on buy-back account (25000000 A-share) from total share capital 996986293 shares
distributed 2.20 yuan (tax included) cash dividend for every 10 shares held without capitalization from capital reserves. The plan
was completed in October 2024.
4. The implementation of the Company’s cash dividend policy is in compliance with the provisions of Articles of Association
relevant decision-making procedures are complete and fully listen to the views of independent directors and small & medium
shareholders and maintain the legitimate rights and interests of small & medium shareholders.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
If the company has not distributed cash dividends it shall disclose the specific reasons and the next steps to be
NA
taken to enhance the level of investor returns:
Small & medium shareholders have opportunity to express opinions and demands totally and their legal rights
Y
are fully protected:
Condition and procedures are compliance and transparent while the cash dividend policy adjusted or changed : NA
The Company earnings during the reporting period and profit available for distribution to shareholders from parent company is
positive but no cash dividend distribution plan has been proposed
□ Applicable □Not applicable
Profit distribution and capitalization of capital reserves during the reporting period
□Applicable □Not applicable
Number of bonus shares per 10 shares (Share) 0
Dividend payout per 10 shares (Yuan) (Tax included) 9
Equity base of distribution plan (Share) 971986293
Cash dividend amount(Yuan) (Tax included) 874787663.70
Cash dividend by other ways (share buy-back included) (RMB) 0.00
Total cash dividends(Include other ways) (Yuan) 874787663.70
Profit available for distribution (Yuan) 12572820128.71
The proportion of the total cash dividends (including other
100
forms) to the total profit distribution.Cash dividend policy
Other
Detail explanation on profit distribution or capitalization from capital reserves
The Company's 2024 annual profit distribution plan: based on the 971986293 shares which exclude the buy-back shares on buy-
back account (25000000 A-share) from total share capital 996986293 shares (According to the provisions of the Company Law
of the People's Republic of China the listed company does not have the right to participate in the profit distribution and the
conversion of the capital reserve into the share capital by repurchasing the shares held by the company through the special
securities account) distributing 9.00 yuan (tax included) cash dividend for every 10 shares held no bonus shares without
capitalization from capital reserves. The remaining undistributed profit is carried forward to the next year. The total amount of
54WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
cash dividend to be paid is RMB 874787663.70 (tax included). When the profit distribution plan is implemented if there is a
change in the total amount of shares entitled to profit distribution the total amount of shares entitled to profit distribution on the
equity registration date at the time of implementation of the distribution plan shall be adjusted based on the principle of unchanged
distribution proportion.XI. Implementation of the Company’s stock incentive scheme employee stock ownership plan
or other employee incentives
□Applicable □Not applicable
1. Stock incentive
On October 12 2020 the company held the 17th meeting of the 9th session of the BOD deliberated and approved relevant proposal as
the Restricted Stock Incentive Plan 2020 (Draft).On November 3 2020 the company held the second extraordinary shareholders’ general meeting of 2020 deliberated and approved
relevant proposals as the Restricted Stock Incentive Plan 2020 (Draft) and its summary the Proposal on Assessment Management
Measures for Restricted Stock Incentive Plan Implementation and the Proposal to Request the Shareholders’ General Meeting to
Authorized the BOD to Fully Handle Matters Regarding Stock Incentive.On November 12 2020 the Company held the 21st meeting of the 9th session of the BOD as authorized by the second extraordinary
shareholders’ general meeting of 2020 deliberated and approved the Proposal on Adjusting the List of Incentive Objects 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 considers that conditions for the initial grant of 2020
restricted stock incentive plan have been met and November 12 2020 is determined as the initial grant date 19540000 restricted
shares are granted to 601 incentive recipients at a grant price of 15.48 yuan/Share.The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Company dated December
82020.
On October 22 2021 the Company held the 5th meeting of 10th session of the BOD deliberated and approved relevant proposals as
the Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back and Cancellation of the
Restricted Stocks Partially Granted without Circulation for year of 2020 and decided to buy-back and cancel 291000 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 Shenzhen Branch of CSDC. After cancellation number of the incentive
recipients for the first grant of 2020 restricted stock incentive plan was adjusted from 601 to 590 restricted stock of 19249000
shares is being held in total.On December 7 2022 the Company held the 14th meeting of 10th session of the BOD and deliberated and approved the Proposal on
the Achievement of the Conditions for the Release of Restricted Shares in the First Restricted Period of the 2020 Restricted Stock
Incentive Plan the Proposal on Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and the
Proposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020. It agreed to
apply for the release of 7632000 restricted stocks granted to 581 incentive recipients and decided to buy-back and cancel 430000
restricted shares held by 23 incentive recipients that had been granted but not yet unlocked. On December 16 2022 the shares
released from this restricted sale were formally available for circulation. As of February 16 2023 the Company completed the buy-
back and cancellation procedures for the aforementioned 430000 shares at Shenzhen Branch of China Securities Depository and
Clearing Co. Ltd. After this cancellation the number of incentive recipients granted for the first time by the Company's restricted
stock incentive plan in 2020 was adjusted from 590 to 568 holding 11187000 restricted stocks in total.
55WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
On April 26 2023 the company held the 16th meeting of the 10th session of the BOD and approved the Proposal on Buy-Back and
Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back and cancel a total of
5593500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions for lifting restrictions. As
of June 16 2023 the company has completed the repurchase and cancellation procedures for the above-mentioned shares at
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this cancellation there were 568 incentive
recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan holding a total of 5593500.00 shares of
restricted stock.On October 23 2023 the company held the 20th meeting of the 10th session of the BOD deliberated and approved the Proposal on
Buy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided to buy
back and cancel a total of 417000 restricted stocks that have been granted to 33 incentive recipients but do not meet the conditions
for lifting restrictions. As of December 19 2023 the company has completed the buy-back and cancellation procedures for the
above-mentioned shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this
cancellation there were 535 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan
holding a total of 5176500.00 shares of restricted stock.On April 15 2024 the company held the 23rd meeting of the 10th session of Board of Directors and approved the Proposal on Buy-
Back and Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back and cancel a
total of 5176500 restricted stocks that had been granted to 535 incentive recipients but did not meet the conditions for lifting
restrictions. As of June 7 2024 the company has completed the repurchase and cancellation procedures for the above-mentioned
shares at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this cancellation the 2020
Restricted Stock Incentive Plan has been completed.Stock incentive received by directors and senior executives
□ Applicable □ Not applicable
In share
Exerci
Numbe se
r of Numbe Numbe price Numbe
Numbe Number
new r of r of of the Numbe r of Numbe Grant Number
r of Market of new
stock stock stocks stock r of restrict r of price of
stock value restricte
options exercis exercis exercis stock ed shares of restricted
options at end d shares
grante able ed ed options shares unlock restrict shares
Name Title held at of the granted
d during during during held at held at ed ed held at
beginn Period during
during the the the end of beginn during shares end of
ing of (RMB/ the
the reporti reporti reporti the ing of the (RMB/ the
the Share) reportin
reporti ng ng ng period the period Share) period
year g period
ng period period period period
period (RMB/
Share)
Director
Deputy
GM(Acti
Rong Bin ng as 18.88 84000 84000 15.48 0
general
manager
）
Xu Deputy
18.88840008400015.480
Sheng GM
Deputy
GM
Liu
Secretar 18.88 84000 84000 15.48 0
Jinjun
y of the
Board
Chief
Li Gang 18.88 84000 84000 15.48 0
engineer
WangXia Chairma 18.88 12000 12000 15.48 0
56WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
odong(Re n 0 0signed）
Xu
Vice
Yunfeng 10500 10500
Chairma 18.88 15.48 0
(Reigned 0 0
n GM
)
5610056100
Total -- -- -- -- 0
00
Assessment mechanism and incentive condition of the senior executives
Assessment and incentive of senior executives of the Company is conducted pursuant to the Company Law
Articles of Association and the Annual Operating Results Assessment Measures of Senior Executives (Trial) and
the Remuneration Management Rules of Senior Executives (Trail) as approved at the general meetings.Assessment of operating results of senior executives comprises of annual operating results assessment and term-
of-service operating results assessment. Assessment on results and procedure was combined and assessment
results were linked to incentives and punishment. With respect to annual operating results review the
remuneration and assessment committee of the Board made comprehensive assessment on satisfaction of the
annual operating targets and determined the annual remuneration incentives or punishment for senior executives
based on their review results (which was implemented according to remuneration management rules of senior
executives) based on the major annual operating targets set by the Board under required procedures and methods
through establishment of scientific performance indicators and assessment system and combination of scoring in
terms of quantity and review comments. During the reporting period the Company made appropriate assessment
on its senior executives under the performance indicator and assessment system the results of which had been
reflected in the annual performance related remuneration.
2. Implementation of employee stock ownership plan
□Applicable □Not applicable
3. Other employee incentives
□Applicable □Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
During the reporting period the company continued to supervise and improve the operation of the internal control system
coordinating the internal audit work of overseas subsidiaries and accelerating the overseas internal audit supervision process. By
leveraging internal audit supervision the company ensures the compliant operation asset security and risk control of its overseas
assets as part of its global strategic expansion. The company followed a risk-oriented approach and has actively established a Risk
Control Management Committee while also developing the Management Guidelines for the Risk Control Management Committee to
further strengthen group-level risk management. Additionally the company revised the Risk Control Management System to
reinforce the reporting requirements for subsidiaries and business units regarding business operations and risk issues. The company
57WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
continuously refines its systems strengthens oversight proactively mitigates risks and comprehensively enhances its ability to
govern in accordance with the law and improve risk prevention capabilities.
2. Details of major defects in internal control identified during the reporting period
□Yes ? No
XIII. Management and controls on subsidiary during the reporting period
Integration Problems encountered Countermeasures Resolution Follow-up
Name Integration plans
progress in integration taken progress resolution plan
NA NA NA NA NA NA NA
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
Disclosure date of full internal control
2025-04-18
assessment report
For more details please refer to the Self-assessment Report of Internal Control for
Disclosure index of full internal control
2024 published on in Juchao Website (www.cninfo.com.cn) appointed by Shenzhen
assessment report
Stock Exchange
The ratio of the total assets of entities
included in the scope of assessment
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
enterprises included in the scope of
assessment accounting for the operating 100.00%
income on the company's consolidated
financial statements
Defects recognition criteria
Category Financial Reports Non-financial Reports
See details in (II) Basis for assessment of See details in (II) Basis for assessment of
internal controls and defect recognition internal controls and defect recognition
criteria of internal controls of III criteria of internal controls of III
Qualitative criteria Assessment of Internal Controls in 2024 Assessment of Internal Controls in 2024
Annual Internal Control Self-Assessment Annual Internal Control Self-Assessment
Report disclosed on www.cninfo.com.cn Report disclosed on www.cninfo.com.cn
dated April 18 2025. dated April 18 2025.See details in (II) Basis for assessment of See details in (II) Basis for assessment of
internal controls and defect recognition internal controls and defect recognition
criteria of internal controls of III criteria of internal controls of III
Quantitative criteria Assessment of Internal Controls in 2024 Assessment of Internal Controls in 2024
Annual Internal Control Self-Assessment Annual Internal Control Self-Assessment
Report disclosed on www.cninfo.com.cn Report disclosed on www.cninfo.com.cn
dated April 18 2025. dated April 18 2025.Number of significant defects in
0
financial reports
Number of significant defects in non-
0
financial reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
58WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2. Audit report of internal control
□Applicable □ Not applicable
Deliberations in Internal Control Audit Report
The internal control audit institution is of the opinion that Wuxi Weifu High-Technology Group Co. Ltd. maintained effective
internal financial reporting control in all material aspects as of December 31 2024 in accordance with the Basic Norms for
Enterprise Internal Control and relevant regulations.Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) 2025-04-18
For more details please refer to the Audit report of internal
Index of audit report of internal control (full-text) control for year of 2024 published on Juchao website
(www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
Opinion type of audit report of IC Unqualified opinion with highlighted paragraphs
Whether the non-financial report had major defects or not (Y/N) NA
Carried out modified opinion for internal control audit report from CPA
□Yes? No
The internal control audit report issued by CPA has concerted opinion with self-evaluation report issued from the Board
□ Yes □ No
XV. Rectification of the Problems Identified in the Self-inspection of the Special Action for the
Governance of Listed Companies
NA
59WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section V. Environmental and Social Responsibility
I. Major environmental issues
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
□Yes □ No
Administrative punishment for environmental problems during the reporting period
Policies and industry standards related to environmental protection
Wuxi Weifu High-Tech Group Co. Ltd. and its subsidiaries diligently fulfill environmental protection policies and guidelines at all
levels during production and operation strictly comply with related national environmental protection laws and regulations such as
Environmental Protection Law of the People's Republic of China Environmental Impact Assessment Law of the People's Republic of
China Air Pollution Prevention and Control Law of the People's Republic of China Water Pollution Prevention and Control Law of
the People's Republic of China Solid Waste Pollution Prevention and Control Law of the People's Republic of China Noise
Pollution Prevention and Control Law of the People's Republic of China Energy Conservation Law of the People's Republic of
China Cleaner Production Promotion Law of the People's Republic of China Environmental Protection Tax Law of the People's
Republic of China Measures for the Management of Hazardous Waste Transfer Regulations on Environmental Protection of
Construction Projects Regulations on the Administration of Emission Permits as well as related local environmental protection
management rules and regulations regularly collect newly promulgated laws and regulations on ecological and environmental
protection at all levels and perform compliance evaluation transformation by combining with production reality to ensure
compliance with the law at all times in the production and operation of the Company.In the process of production the Company has constructed comprehensive waste gas and waste water treatment facilities and solid
waste storage facilities in strict accordance with the requirements of related standards such as Standards for Comprehensive Sewage
Discharge Water Quality Standards for Sewage Discharge into Urban Sewers Comprehensive Emission Standards for Air
Pollutants and Pollution Control Standards for Hazardous Waste Storage and guaranteed stable operation in an effort to minimize
the negative impact of production and operation on the ecological environment.Administrative licenses for environmental protection
All the construction projects of the Company and its subsidiaries have been prepared with environmental impact reports (forms) and
have been approved by the local ecological and environmental authorities and all have obtained emission permits (registrations) in
accordance with the requirements of laws and regulations thereby effectively achieving licensed emission and legal and compliant
emission. The valid period of the Discharge Permit of Wuxi Weifu High-Tech Group Co. Ltd. is from March 27 2023 to March 26
2028; The valid period of the Discharge Permit of Wuxi Weifu Chang’an Co. Ltd. is from January 2 2024 to January 1 2029.
The valid period of the Discharge Permit of Nanjing Weifu Jinning Co. Ltd. is from July 31 2024 to July 30 2029;
Industry emission standards and the specific situation of pollutant emissions involved in production and business activities
Main
Name of
pollutant Number Distributio Standard for
main Emission Total Excessiv
Company/Subsidiar s and Emission of n of emission of Total
pollutants concentration/strengt emissions e
y specific mode emissio emission pollutants emissions
and specific h approved emission
pollutant n outlets outlets implemented
pollutants
s
Discharge Chemical Chemical
Chemical d through oxygen oxygen
oxygen the Chemical oxygen Wastewater demand demand 78
demand municipal demand 88mg/L Quality 21.06 tons tons
Ammonia sewage WFMS ammonia nitrogen Standards for ammonia ammonia
Water Nitrogen pipe sewage 3.83mg/L total Discharge to nitrogen nitrogen
WFHT 1 None
pollutant total network discharge phosphorus Municipal 0.92 tons 7.8 tons
nitrogen after being outlet 0.109mg/L total Sewers total total
total treated by nitrogen 5.38mg/L (GB/T31962- phosphorus phosphorus
phosphorus the petroleum 0.06mg/L 2015) 0.026 tons 0.52 tons
petroleum company’s total total
sewage nitrogen nitrogen
60WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
treatment 1.29 tons 10.4 tons
station petroleum petroleum
0.014 tons 1.95 tons
Connect to
the
Chemical WFMS
municipal Chemical oxygen
oxygen cooling
Water sewage demand 11mg/L
WFHT demand 1 wastewater None None None None
pollutant pipe ammonia nitrogen
suspended discharge
network 14mg/L
solids outlet
for
discharge
Chemical
oxygen
Chemical
Discharge demand ≤
oxygen
d through 19.0125
demand
the tons
Chemical 3.79 tons
municipal Chemical oxygen Wastewater ammonia
oxygen ammonia
sewage demand 82mg/L Quality nitrogen ≤
demand nitrogen
pipe WFAC ammonia nitrogen Standards for 1.416 tons
Ammonia 0.58 tons
Water network sewage 12.6mg/L total Discharge to total
WFHT Nitrogen 1 total None
pollutant after being discharge nitrogen 15mg/L Municipal nitrogen ≤
petroleum nitrogen
treated by outlet total phosphorus Sewers 2.2422
total 0.69 tons
the 3.4mg/L petroleum (GB/T31962- tons total
nitrogen total
company’s 1.47mg/L 2015) phosphorus
petroleum phosphorus
sewage ≤ 0.2627
0.16 tons
treatment tons
petroleum
station petroleum
0.07 tons
≤0.5935
tons
The
exhaust air
will be
discharged
There are 5
in an
machining
organized Comprehensiv
workshops
Non- way after e Emission
Air 10 heat
methane being Standard of
WFHT pollutant 19 treatment 2.4mg/m3 2.258 tons 2.523tons None
hydrocarbo treated by Air Pollutants
s workshops
n oil mist (GB16297-
and 4
processor 1996)
assembly
and
workshops
absorbed
by
activated
carbon
The
exhaust air
will be
discharged
in an
organized 4 in 101 Comprehensiv
Non- way after workshop e Emission
Air
methane being 2 in 103 Standard of 1．5529ton
WFHT pollutant 7 1.77mg/m3 1.2473tons None
hydrocarbo treated by workshop Air Pollutants s
s
n oil mist and 1 in (GB16297-
processor 104 1996)
and workshop
absorbed
by
activated
carbon
Discharge
d in an
1 heat
organized
treatment Emission
way after
Air workshop Standards for
Ammonia being
WFHT pollutant 2 and one 0.25mg/m3 Odor 0.013tons 0.071tons None
gas absorbed
s wastewater Pollutants
by
disposal (GB14554-93)
ammonia
station
spray
tower
Comprehensiv
Organized
e Emission
Air discharge 1 heat
1.2mg/m3； 、 Standard of
WFHT pollutant Particles after bag 2 treatment 0.0081tons 0.048tons None
1.1mg/m3 Air Pollutants
s dust- workshops
(GB16297-
cleaning.
1996)
Hazardous
waste such
as waste Entrust a
oil waste legally
Solid 1285.58ton
WFHT emulsion qualified NA NA NA NA 4325.1tons None
waste s
waste unit for
packaging disposal.drums
waste
activated
61WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
carbon
grinding
wheel ash
sewage
pretreatmen
t sludge oil
containing
filter
cartridges
etc
Chemical
Chemical oxygen
Discharge oxygen demand
d through demand 35.018
Chemical
the 6.708 tons tons
oxygen
municipal Chemical oxygen Wastewater suspended suspended
demand
sewage demand 86mg/L Quality solids 1.34 solids
ammonia
pipe suspended solids Standards for tons 26.263
nitrogen Sewage
Water network 20mg/L ammonia Discharge to ammonia tons
WFCA total 1 discharge None
pollutant after being nitrogen 5.64mg/L Municipal nitrogen ammonia
phosphorus outlet
treated by total phosphorus Sewers 0.439 tons nitrogen
total
the 0.1mg/L total (GB/T31962- total 2.626 tons
nitrogen
company’s nitrogen 6.01mg/L 2015) phosphorus total
suspended
sewage 0.0067 phosphorus
solids
treatment tons total 0.438 tons
station nitrogen total
0.468 tons nitrogen
3.502 tons
Chemical
Discharge
oxygen
d through
demand 8.8
the
tons
municipal Chemical oxygen Wastewater
ammonia
sewage demand 98mg/L Quality
Chemical nitrogen
pipe ammonia nitrogen Standards for
oxygen Sewage 0.99 tons
Water network 11mg/L total Discharge to Not
WFJN demand and 1 discharge total None
pollutant after being phosphorus 0.85 Municipal applicable
ammonia outlet phosphorus
treated by mg/L petroleum 4.2 Sewers
nitrogen 0.07 tons
the mg/L total nitrogen (GB/T31962-
petroleum
company's 33mg/L 2015)
0.008 tons
sewage
total
treatment
nitrogen
station
2.95 tons
Hazardous
wastes such
as waste
oil oily
sludge
Entrust a
grinding
Solid qualified
WFJN wheel ash NA NA NA NA 300 tons NA None
waste unit for
empty
disposal.barrels
activated
carbon and
filter
elements
Treatment of pollutants
The company mainly focuses on mechanical processing and generates oil mist exhaust gas (non-methane total hydrocarbons). The oil
mist exhaust gas generated in WFAC101 workshop is treated by the high-efficiency oil mist purifier and discharged into the
workshop. After being treated by the secondary activated carbon adsorption device on the roof the oil mist exhaust gas is discharged
through four 15m-high exhaust funnels; The oil mist exhaust gas generated in WFAC103 workshop is treated by an efficient oil mist
purifier and a secondary activated carbon adsorption device and then discharged through two 15m-high exhaust funnels. The oil mist
exhaust gas generated in WFAC104 workshop is treated by an efficient oil mist purifier and a secondary activated carbon adsorption
device and discharged through one 15 meter high exhaust pipe; The oil mist exhaust gas generated in the WFMS machining
workshop is treated by a high-efficiency oil mist purifier and a secondary activated carbon adsorption device and then discharged
through four 15m-high exhaust funnels; The cleaning exhaust gas (non-methane total hydrocarbons) is treated by an efficient oil mist
purifier and a secondary activated carbon adsorption device and then discharged through two 15m-high exhaust funnels; Quenching
exhaust gas (non-methane total hydrocarbons) is treated by an efficient oil mist purifier and discharged through three 15m-high
exhaust funnels; The test exhaust gas (non-methane total hydrocarbons) is treated by an efficient oil mist purifier and discharged
through a 15m-high exhaust funnels; The shot blasting exhaust gas (particulate matter) is treated by a bag filter and discharged
through two 15m-high exhaust funnels; The waste gas (ammonia methanol non-methane total hydrocarbons) generated by the
carbon nitrogen co infiltration process is treated by an acid spray tower and a secondary activated carbon adsorption device and then
discharged through a 15 meter high exhaust pipe; The carburized exhaust gas (non-methane total hydrocarbons) is treated by a fire
62WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
curtain combustion and secondary activated carbon adsorption device and then discharged through six 15m-high exhaust funnels;
After being treated by a secondary activated carbon adsorption device the waste gas from drying and solidifying adhesive (non-
methane total hydrocarbons tin and its compounds) is discharged through two 15m-high exhaust funnels; The waste gas (ammonia
hydrogen sulfide) from the sewage station is adsorbed and treated by dry chemical filtration media and discharged through a 15
meter high exhaust pipe. The remaining waste gas is discharged unorganized in the workshop.The company has built a comprehensive sewage treatment station with a designed processing capacity of 1600m3/day in the WFMS
plant area. After the production wastewater is regulated by an air flotation tank it is discharged into the biochemical system of the
sewage station together with the domestic wastewater treated by septic tanks and oil separators for treatment. The treated wastewater
is connected to the municipal pipe network for standard discharge;
WFAC has built a set of industrial sewage treatment station with a designed treatment capacity of about 150m3/d and a domestic
sewage treatment station with a treatment capacity of about 200m3/d in the factory area. After being adjusted by the air flotation tank
the industrial wastewater will be discharged into the total sewage discharge outlet together with the domestic sewage treated and the
treated sewage will be discharged via the municipal pipe network according to the standard.WFCA has built a sewage treatment station with a designed treatment capacity of about 300m3/d in the factory. After being adjusted
by the air flotation tank the production wastewater is discharged into the biochemical system of the sewage station for treatment
together with the domestic sewage treated by septic tanks and grease traps and the treated sewage is discharged via the municipal
pipe network according to the standard.WFJN has built a set of industrial sewage treatment station with a designed treatment capacity of about 150m3/d and a domestic
sewage treatment station with a treatment capacity of about 450m3/d in the factory area. After being adjusted by the air flota tion tank
the industrial wastewater will be discharged into the biochemical system of the sewage station together with the domestic sewage
treated by septic tanks and grease traps for treatment and the treated sewage will be discharged via the municipal pipe network
according to the standard.Emergency plan for environmental emergencies
The Company and its subsidiaries have compiled the Emergency Plan for Sudden Environmental Events in accordance with the
standards and specifications combined with the actual production situation of the Company and have filed it after the review
organized by relevant local departments and revised it on schedule. During the reporting period the Company carried out
comprehensive emergency plan drills and special emergency plan drills according to the annual emergency drill plan and
summarized and evaluated the drills and improved the corresponding emergency measures.Environmental self-monitoring program
During the reporting period the Company and its subsidiaries have compiled the Environmental Self-monitoring Plan for 2024 in
accordance with relevant management requirements and norms and passed the review and filing by local ecological and
environmental authorities. According to the requirements of the scheme a qualified third party agency has been entrusted to monitor
the company's waste gas waste water and noise on a regular basis. All monitoring data have been disclosed on national and local
self-monitoring platforms in accordance with the Measures for Self-monitoring and Information Disclosure of State Key Monitoring
Enterprises (Trial) and supervised by the public. The monitoring data are in line with national and local standards and there is no
excessive discharge found.The investment in environmental governance and protection and the relevant situation of paying environmental protection
tax
The Company and its subsidiaries have set up complete environmental protection treatment facilities in accordance with the
requirements of the EIA reply and the current environmental management requirements and reached the discharge standard of all air
pollutants and water pollutants. The Company has built compliant storage facilities to store solid wastes and entrusted quali fied units
for disposal running at the leading level in the industry in terms of investment in environmental protection. During the reporting
63WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
period the Company and its subsidiaries have paid environmental protection taxes on a quarterly basis in accordance with the
requirements of laws and regulations.Measures to reduce carbon emissions during the reporting period and effects
□ Applicable □ Not applicable
Saving resources and reducing consumption is an important part of the Company's core values. On the one hand it is beneficial to
improve the efficiency of the Company but also to improve the utilization rate of resources in the whole society. Therefore the
Company continues to improve the utilization of resources through technological innovation vigorously promote energy
conservation and emission reduction and strive to achieve green production. Specific energy-saving measures include purchasing
green electricity upgrading and renovating kinetic energy equipment and constructing photovoltaic power generation systems. The
Company's existing main business is focused on automobile energy saving and emission reduction. At present all the Company's
main products have met the emission regulations being implemented by the country and the Company is actively storing products
that meet the requirements of more stringent emission regulations. At the same time in recent years the Company has accelerated the
promotion of green hydrogen energy intelligent electric and other new energy business layout and development contributing to the
realization of carbon peak carbon neutral goal.Administrative penalties for environmental problems during the reporting period
The company’s
Company or Reason for Violation Punishment Impact on the production and
rectification
subsidiary name punishment status results operation of the listed company
measures
None None None None None None
Other information about the environment that shall be disclosed.During the reporting period the Company and its subsidiaries have regularly filled in the implementation reports (quarterly
reports and annual reports) of pollutant discharge permits in accordance with national and local laws and regulations. All air
pollutants and water pollutants have been released in accordance with the standards and hazardous wastes have been disposed of by
qualified units and the transfer slip system has been strictly implemented.Other environmental information
Not applicable
II. Social responsibility
For details please refer to the Social Responsibility Report for Year of 2024 released by the Company on the same day on Juchao
Website (www.cninfo.com.cn)
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
During the reporting period the Company has actively fulfilled its social responsibilities demonstrated its commitment to the
times established a favorable corporate image and made positive contributions to the promotion of sustainable and high-quality
economic and social development.In the initiative of “Ten Thousand Enterprises Linked with Ten Thousand Villages to Jointly Take the Road of Revitalization”
in 2024 the company continued to respond to the call of "Thousands of Enterprises Linking Thousands of Villages" carrying out
relief activities for Maoxing Village in Yixing. The company went deep into the countryside delivering supplies to improve the
villagers' lives. At the same time the company purchased five batches of agricultural products from Maohua Village in Yixing with
64WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
a total procurement amount of 120000 yuan contributing to the local agricultural development and assisting in the construction of
the new rural areas.
65WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section VI. Important Matters
I. Implementation of undertakings
1. Undertakings that the actual controller shareholders related party buyers and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable □ Not applicable
No undertakings that the actual controller shareholders related party buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the period
2. For assets or projects of the Company which keeps profitable forecast during the reporting period
description reasons for reaching the original profitable forecast
□ Applicable □Not applicable
II. Occupation of the non-operational funds of the listed company by controlling shareholders
and its related party
□ Applicable □ Not applicable
No non-operational funds of the listed company have been occupied by the controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable □ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by the BOD
□ Applicable □ Not applicable
On April 15 2024 Gongzheng Tianye Certified Public Accountants (Special General Partnership) issued an unqualified audit report
on the Company’s financial report for the year 2023 with emphasis on certain matters.
(1) Emphasize the matters involved in the paragraph
As shown in XVIII-7. Major transaction and events influencing investor’s decision the case that the Company’s wholly-owned
subsidiary WFTR was defrauded by contracts in its "platform trade" business is in the stage of transferring for review and
prosecution and the outcome of the case is uncertain in the future.
(2) Explanation of changes and disposal of the matters involved
On April 15 2025 the Company disclosed the "Progress Announcement on Significant Matters Concerning the Wholly-Owned
Subsidiary". WFTR received the Criminal Judgment ((2024) Su 02 Xing Chu No. 22) delivered by the Wuxi Intermediate People’s
Court of Jiangsu Province. The Court adjudicated the case in which the Wuxi People’s Procuratorate of Jiangsu Province prosecuted
the defendant Liu XX for the crime of contract fraud. On April 11 2025 the Court issued a first-instance judgment convicting the
defendant Liu XX of contract fraud. The seized sealed and frozen assets involved in the case shall be handled by the public security
authorities in accordance with the law.
66WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
V. Explanation from Board of Directors Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable □ Not applicable
VI. Explanation of the changes in accounting polices accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
□ Applicable □ Not applicable
1. Implementation of the Interpretation No. 17 of the Accounting Standards for Enterprises
On October 25 2023 the Ministry of Finance issued the Interpretation No. 17 of the Accounting Standards for Enterprises (Cai Kuai
[2023] No. 21 hereinafter referred to as Interpretation No. 17) which came into effect as of January 1 2024. Our company has
implemented the provisions of Interpretation No. 17 since January 1 2024. The implementation of the relevant provisions of
Interpretation No. 17 has had no significant impact on the company's financial statements during the reporting period.
2. Implementation of the Interpretation No. 18 of the Accounting Standards for Enterprises
In December 2024 the Ministry of Finance issued the Interpretation No. 18 of the Accounting Standards for Enterprises (Cai Kuai
[2024] No. 24) requiring that for "warranty-type quality guarantees that do not belong to a single performance obligation" the
accounting treatment shall be carried out in accordance with the provisions of Accounting Standard for Enterprises No. 13 -
Contingencies (Cai Kuai [2006] No. 3). According to the determined amount of the estimated liability debit the accounts such as
"Cost of Main Business" and "Cost of Other Business" and credit the "Estimated Liabilities" account. And it shall be presented
correspondingly in items such as "Operating Cost" in the income statement and "Other Current Liabilities" "Non-current Liabilities
Due within One Year" and "Estimated Liabilities" in the balance sheet.This interpretation shall come into effect as of the date of its issuance. Enterprises are allowed to implement it in advance in the year
of its issuance.VII. Comparing with last year’s financial report explain changes in the scope of consolidated
statement
□ Applicable □ Not applicable
Changes in the
Proportion
scope of
Name Methods of Acquiring Equity of Capital
consolidated
Contribution
statement
The entity was jointly established through capital contributions by WFAS a
Add in the scope of subsidiary of the Company's wholly-owned subsidiary Weifu Lida Ningbo
WFLH 40.00%
consolidated statement Mihe Technology Co. Ltd. and Qihengcheng Automotive Technology
(Shanghai) Co. Ltd.The entity was jointly established during the current period through capital
contributions by the Company and the following parties: Boyuan (Shanghai)
Private Fund Management Co. Ltd. Jiangsu Jiequan Zhaoshang Jianye
Add in the scope of
WFSS Equity Investment Partnership (Limited Partnership) Wuxi Economic 61.43%
consolidated statement
Development Zone Xinqin Equity Investment Partnership (Limited
Partnership) Wuxi Weirui Enterprise Management Partnership (Limited
Partnership)
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
67WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Name of domestic accounting firm Zhongxinghua Certified Public Accountants LLP
Remuneration for domestic accounting firm 117
The consecutive years of audit services provided by domestic accounting firm 1
Name of domestic CPA Pan Hua Zhang Xiaoping
The consecutive years of audit services provided by certified public
1
accountants of domestic accounting firm
Whether the accounting firm was changed during the reporting period
□Yes □No
Whether the accounting firm was changed during the audit period
□Yes □No
Whether the approval procedure been fulfilled for the change of the accounting firm
□Yes □No
According to the provisions of the "Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and
Listed Companies" (Cai Kuai [2023] No. 4) issued by the Ministry of Finance the State-owned Assets Supervision and
Administration Commission of the State Council and the China Securities Regulatory Commission and the requirements of the
"Notice on Doing a Good Job in the Selection of Accounting Firms" issued by the Jiangsu Regulatory Bureau of the China Securities
Regulatory Commission in view of the fact that the audit service period provided by Gongzheng Tianye Certified Public
Accountants (Special General Partnership) for the company has exceeded the maximum consecutive appointment period of
accounting firms for state-owned enterprises the company needs to change the accounting firm.During the reporting period of the 2024 annual report after going through the bidding and selection procedures the third meeting of
the 11th Board of Directors of the company and the first extraordinary general meeting of shareholders in 2024 reviewed and
approved the "Motion on the Appointment of the Audit Institution for 2024" and appointed Zhongxinghua as the audit institution for
the company's financial report and internal control in 2024. For details please refer to the "Announcement on the Appointment of the
Audit Institution for 2024" (Announcement No.: 2024-054) disclosed by the company on the Shenzhen Stock Exchange Information
Disclosure Platform (www.cninfo.com.cn) on August 22 2024.The situation of engaging an accounting firm for internal control audit a financial advisor or a sponsor
□ Applicable □ Not applicable
Upon the deliberation of the first extraordinary general meeting of shareholders of the company in 2024 the company engaged
Zhongxinghua as the accounting firm for the internal control audit of the company for the year 2024. During the reporting period an
amount of 300000 yuan was paid to the accounting firm for internal control audit.IX. Particular about delisting after annual report disclosed
□ Applicable □ Not applicable
X. Bankruptcy reorganization
□ Applicable □Not applicable
XI. Major litigation and arbitration
□Applicable ? Not applicable
No significant litigation or arbitration matters for the company in reporting period.
68WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
XII. Penalty and rectification
? Applicable □ Not applicable
Investigation
Conclusion (if Disclosure
Name/Name Type Reason and punishment Disclosure Date
any) Index
types
1. Inaccurate
disclosure of
financial
information
2. Failed to
fulfill the The Announcement
review administrative on Receiving
procedures and and regulatory Warning Letter
disclosure measures from Jiangsu
WFHT Other obligations for China issued by Securities
related party Securities Jiangsu Regulatory
transactions in Regulatory Securities Bureau
accordance Commission Regulatory "(Announceme
2024-03-28
with took Bureau with a nt No. 2024-
regulations administrative warning letter 005) disclosed
3. Undisclosed and regulatory have been by the company
2022 measures recorded in the on the website
performance integrity file of of Juchao
forecast the securities Information
Wang and futures (www.cninfo.Xiaodong Director market. com. cn)
(Leave office) Failed to be
Xu Yunfeng diligent and
Director
(Leave office) responsible
Ou Jianbin
Other
(Leave office)
Failed to timely
Decision on
disclose 2022
Issuing a
annual
WFHT Other Notice of
performance
Criticism and
forecast as
The stock Disciplinary
required Circulate a
exchange took Action against
Wang notice of 2024-03-27
disciplinary WFHT and
Xiaodong Director Failed to fulfill criticism
actions. Related Parties
(Leave office duties and
on the Official
Xu Yunfeng obligations of
Director Website of
(Leave office) honesty and
Shenzhen Stock
Ou Jianbin diligence
Other Exchange
(Leave office)
Explanation of Rectification
□Applicable □ Not applicable
After receiving the warning letter from the Jiangsu Securities Regulatory Bureau the company took it very seriously carefully
learned from the lesson strengthened the study of relevant laws regulations and normative documents improved information
disclosure management and raised the level of standardized operations to prevent such events from happening again. The company
and the relevant personnel have submitted a written rectification report to the Jiangsu Securities Regulatory Bureau as required.XIII. Integrity of the Company its controlling shareholders and actual controllers
□ Applicable □ Not applicable
69WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
XIV. Major related party transaction
1. Related party transaction involved with daily operation
□Applicable □ Not applicable
Wheth
Related
Conten Trading er over Clearin
Type Relate party Proport Availa
t of limit the g form
of Pricing d party transaction ion in ble Date of Index of
Relate Relatio related approved approv for
related princip transac amount (in similar similar disclosur disclosur
d party nship party (in 10 ed related
transac le tion 10 transac market e e
transac thousand limited transac
tion price thousand tions price
tion yuan) or not tion
yuan)
(Y/N)
Procur Procur
ement ement Accord
Joint of of Fair ing to
Market Market
WFPM ventur goods goods market 3359.46 0.25% 4500 N the
price price
e and and pricing contrac
service service t
s s
Associ
ated
enterpr
Procur Procur
ise
ement ement Accord
control
of of Fair ing to
ling Market Market
RBCD goods goods market 25418.13 1.86% 31300 N the
subsidi price price
and and pricing contrac
ary of
service service t Announc
Robert
s s 2024-04- ement
Bosch
16 No.:
Compa
ny
Procur Procur
ement ement Accord
Joint
of of Fair ing to
ventur Market Market
WFEC goods goods market 80069.06 5.87% 119800 N the
e of price price
and and pricing contrac
WFLD
service service t
s s
Second Procur Procur
largest ement ement Accord
Robert
shareh of of Fair ing to
Bosch Market Market
older goods goods market 24599.1 1.80% 22200 Y the
Compa price price
of the and and pricing contrac
ny
Compa service service t
ny s s
Holdin
Procur Procur
g
ement ement Accord
compa
FALC of of Fair ing to
ny of Market Market
ONTE goods goods market 7.77 0.00% 0 Y the
Wuxi price price
CH and and pricing contrac
Industr
service service t
y
s s
Group
Holdin
g Procur Procur
Wuxi compa ement ement Accord
Securit ny of of of Fair ing to
Market Market
y Wuxi goods goods market 0.34 0.00% 0 Y the
price price
Compa Industr and and pricing contrac
ny y service service t
Group s s
Holdin
g Procur Procur
compa ement ement Accord
ny of of of Fair ing to
ETER Market Market
Wuxi goods goods market 7.17 0.00% 0 Y the
N price price
Industr and and pricing contrac
y service service t
Group s s
70WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Sale of Sale of Accord
Fair
Joint goods goods ing to
market Market Market
WFPM ventur and and 120.11 0.01% 200 N the
pricing price price
e service service contrac
s s t
Associ
ated
enterpr
ise
control Sale of Sale of Accord
ling goods goods Fair ing to
Market Market
RBCD subsidi and and market 135274.08 12.11% 228100 N the
price price
ary of service service pricing contrac
Robert s s t
Bosch
Compa
ny
Sale of Sale of Accord
Joint
goods goods Fair ing to Announc
ventur Market Market
WFEC and and market 55.09 0.00% 1500 N the 2024-04- ement
e of price price
service service pricing contrac 16 No.:
WFLD
s s t 2024-011
Second
largest
Sale of Sale of Accord
Robert shareh
goods goods Fair ing to
Bosch older Market 18.61 Market
and and market 207812.05 205600 Y the
Compa of the price % price
service service pricing contrac
ny Compa
s s t
ny
Sale of Sale of Accord
Chang Joint
goods goods Fair ing to
chun ventur Market Market
and and market 576.16 0.05% 5400 N the
Xuyan e of price price
service service pricing contrac
g WFLD
s s t
Sale of
Sale of Accord
goods
Lezhu Joint goods Fair ing to
and Market Market
o ventur and market 1094.03 0.10% 1540 N the
service price price
Bowei e service pricing contrac
s
s t
Sale of
Sale of Accord
goods
WuXi Joint goods Fair ing to
and Market Market
Zhuow ventur and market 11.38 0.00% 0 Y the
service price price
ei e service pricing contrac
s
s t
Holdin
g
compa Sale of Sale of Accord
Wuxi
ny of goods goods Fair ing to
Grain Market Market
Wuxi and and market 21.46 0.00% 0 Y the
Reserv price price
Industr service service pricing contrac
e
y s s t
Group
Procur Accord
Joint ement Fair ing to
Market Market
WFPM ventur Other of market 0.3 0 Y the
price price
e Fixed pricing contrac
Assets t
Associ
ated
Payme
enterpr
nt of
ise
Techno
control Accord
logy Announc
ling Fair ing to
Royalt Market Market 2024-04- ement
RBCD subsidi Other market 0 500 N the
y Fees price price 16 No.:
ary of pricing contrac
and 2024-011
Robert t
Other
Bosch
Relate
Compa
d Fees
ny
71WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Associ
ated
enterpr
ise Accou
Accord
control nts
Fair ing to
ling Receiv Market Market
RBCD Other market 49.92 100 N the
subsidi able - price price
pricing contrac
ary of Lease
t
Robert Fees
Bosch
Compa
ny
Payme
nt of
Second
Techno
largest Accord
Robert logy
shareh Fair ing to
Bosch Royalt Market Market
older Other market 272.47 500 N the
Compa y Fees price price
of the pricing contrac
ny and
Compa t
Other
ny
Relate
d Fees
Second
largest Procur Accord
Robert
shareh ement Fair ing to
Bosch Market Market
older Other of market 921.24 100 Y the
Compa price price
of the Fixed pricing contrac
ny
Compa Assets t
ny
Second
Accou
largest Accord
Robert nts
shareh Fair ing to
Bosch Receiv Market Market
older Other market 3.85 0 Y the
Compa able - price price
of the pricing contrac
ny Lease
Compa t
Fees
ny
Providi
ng
Second Techni
largest cal Accord
Robert Announc
shareh Servic Fair ing to
Bosch Market Market 2024-04- ement
older Other es and market 0 200 N the
Compa price price 16 No.:
of the Other pricing contrac
ny 2024-011
Compa Relate t
ny d
Offerin
gs
Second
largest Accord
Robert Announc
shareh Sale of Fair ing to
Bosch Market Market 2024-04- ement
older Other Fixed market 277.44 300 N the
Compa price price 16 No.:
of the Assets pricing contrac
ny 2024-011
Compa t
ny
Techni
cal
Second Servic
largest e Fees Accord
Robert
shareh Payabl Fair ing to
Bosch Market Market
older Other e and market 19.3 0 Y the
Compa price price
of the Other pricing contrac
ny
Compa Relate t
ny d
Expens
es
Techni
cal
Servic
Accord
Joint e Fees
Fair ing to
ventur Payabl Market Market
WFEC Other market 58.91 0 Y the
e of e and price price
pricing contrac
WFLD Other
t
Relate
d
Expens
72WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
es
Providi
ng
Techni
cal Accord
Joint
Servic Fair ing to
ventur Market Market
WFEC Other es and market 64.13 100 N the
e of price price
Other pricing contrac
WFLD
Relate t
d
Offerin
gs
Accou
Accord
Joint nts
Fair ing to
ventur Receiv Market Market
WFEC Other market 200.66 300 N the
e of able - price price
pricing contrac
WFLD Lease
t
Fees
Announc
Accou
2024-04- ement
nts Accord
Joint 16 No.:
Payabl Fair ing to
ventur Market Market 2024-011
WFEC Other e- market 112.52 200 N the
e of price price
Energy pricing contrac
WFLD
Charge t
s
Accou
Accord
nts
Lezhu Joint Fair ing to
Receiv Market Market
o ventur Other market 314.87 400 N the
able - price price
Bowei e pricing contrac
Lease
t
Fees
Accou
nts Accord
Lezhu Joint Receiv Fair ing to
Market Market
o ventur Other able - market 0 200 N the
price price
Bowei e Energy pricing contrac
Charge t
s
Providi
ng
Techni
cal Accord
Lezhu Joint Servic Fair ing to
Market Market
o ventur Other es and market 8.27 0 Y the
price price
Bowei e Other pricing contrac
Relate t
d
Offerin
gs
Accou
Accord
nts Announc
Joint Fair ing to
Autoli Receiv Market Market 2024-04- ement
ventur Other market 269.82 600 N the
nk able - price price 16 No.:
e pricing contrac
Lease 2024-011
t
Fees
Procur
ement
Holdin of
Urban g Cantee
Accord
public compa n
Fair ing to
deliver ny of Ingredi Market Market
Other market 247.07 0 Y the
y Wuxi ents price price
pricing contrac
Holdin Industr and
t
g y Relate
Group d
Suppli
es
Providi
The ng
Accord
Wuxi parent Techni
Fair ing to
Industr compa cal Market Market
Other market 75.21 0 Y the
y ny of Servic price price
pricing contrac
Group the es and
t
WFHT Other
Relate
73WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
d
Offerin
gs
Holdin
g
Procur Accord
compa
ement Fair ing to
Wuxi ny of Market Market
Other of market 6.89 0 Y the
IoT Wuxi price price
Fixed pricing contrac
Industr
Assets t
y
Group
Techni
cal
Holdin
Servic
g
e Fees Accord
compa
Payabl Fair ing to
ETER ny of Market Market
Other e and market 2.55 0 Y the
N Wuxi price price
Other pricing contrac
Industr
Relate t
y
d
Group
Expens
es
Total -- -- 481330.81 -- 623640 -- -- -- -- --
Detail of sales return with major
Not applicable
amount involved
It is estimated that the total amount of daily related party transactions for the year 2024 will be 6.2364 billion yuan
and the actual total amount of daily related party transactions during the reporting period is 4.8133081 billion yuan.Report the actual implementation of By category it is expected that the amount of goods and services purchased from related parties in 2024 will not
the daily related transactions which
exceed 1.778 billion yuan and the actual amount incurred during the reporting period is 1.3346103 billion yuan; 2. It
were projected about their total amount
by types during the reporting period (if is expected that the sales of goods and services to related parties in 2024 will not exceed 4.4234 billion yuan and the
applicable) actual amount incurred during the reporting period is 3.4496436 billion yuan; 3. It is expected that other related party
transactions with related parties in 2024 will not exceed 35 million yuan and the actual amount incurred during the
reporting period is 29.0542 million yuan.Reasons for major differences between
trading price and market reference Not applicable
price (if applicable)
2. Related party transactions of assets or acquisition and sold
□ Applicable □ Not applicable
3. Related party transactions of mutual investment outside
□ Applicable □Not applicable
4. Contact of related party credit and debt
□Applicable □ Not applicable
Is there any non operating related debt and debt transaction
□ Yes □No
Receivable debt from related parties
Is there
Beginnin Amount
any Increase Interest in Ending
Related g received
Related Cause of occupatio in current Interest current balance(’
relationsh balance(’ in current
party formation n of non period(’0 rate period(’0 0000
ip 0000 period(’0
operating 000 yuan) 000 yuan) yuan)
yuan) 000 yuan)
funds
74WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Company
controlled
by the
older
Hebei
brother of
Machiner - -
the
y and its 212548.7 212548.7
former
related 8 8
director/s
parties
enior
"platform
managem
trade" N
ent of the
business
company
Hebei 195847.0 195847.0
Jinda Companie 5 5
Hebei s 143675.7 143675.7
Deshuang controlled 2 2
Hebei by Hebei
60940.4960940.49
Lanpai Machiner
Hebei y
47925.3347925.33
Mianzhuo
235839.8235839.8
Total
11
For details on the impact on the company's operating results and financial
The impact of related debt on the Company's
condition please refer to the description of ""Provision for expected credit
operating results and financial condition
losses on other receivables formed by “platform trade” business"”
Note1: Hebei Machinery refers to Hebei Machinery Import and Export Co. Ltd. Hebei Jinda refers to Hebei Jinda Import and
Export Co. Ltd. Hebei Lanpai refers to Hebei Lanpai Technology Co. Ltd. Hebei Mianzhuo refers to Hebei Mianzhuo
Electromechanical Equipment Sales Co. Ltd. Hebei Deshuang refers to Hebei Deshuang Trading Co. Ltd.Note2: According to the principle of substance over form the company did not treat Weifu International Trade's "platform trade"
business as a normal trade business but accounted for it as a fund receipt and payment. Because Hebei Jinda Hebei Deshuang Hebei
Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery based on the business essence of "platform trade" business WFTR
listed the difference between the "purchase payment" paid by WFTR to Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei
Mianzhuo based on "platform trade" business and the "sales payment" received from Hebei Machinery 2358398084.78 yuan as
other receivables including: The "sales payment" received from Hebei Machinery is presented as a negative number. As of
December 31 2023 the Company has made a bad debt provision of 1448358922.04 yuan for the balance of other receivables; The
bad debt provision balance is calculated by 80.10% which is the proportion of other receivables balance of Hebei Machinery and its
controlled companies 2415151888.80 yuan to other receivables balance of WFTR's "platform trade" business portfolio
2741499131.95 yuan as of December 31 2022 multiply the bad debt provision for other accounts receivable balances in WFTR’s
"platform trade" business portfolio 1644068327.93 yuan.
5. Contact with the related finance companies
□ Applicable □ Not applicable
There are no deposits loans credits or other financial business between the finance companies with associated relationship and
related parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable □ Not applicable
There are no deposits loans credits or other financial business between the finance companies controlled by the Company and
related parties
75WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
7. Other material related party transactions
□ Applicable □ Not applicable
On April 15 2024 the company held the 23rd meeting of the 10th session of board of directors deliberated and approved the
Proposal on Participating in the Establishment of Partnership Enterprise and Related Party Transactions. On November 22 2024 the
company disclosed the Progress Announcement on Intending to Participate in Investment and Establishment of Partnership
Enterprises and Related Transactions (Announcement No. 2024-068) and the joint venture company has completed the industrial and
commercial registration procedures and private investment fund filing registration.On May 14 2024 the company held the 25th meeting of the 10th session of Board of Directors deliberated and approved the
Proposal on Proposed Capital Increase and Related Party Transactions for Participating Companies. As of the disclosure date of this
report the matter is progressing as planned.On May 14 2024 the company held the 25th meeting of the 10th session of Board of Directors deliberated and and approved the
Proposal on Investing in the Establishment of Joint Venture Company for Intelligent Perception Business and Related Party
Transactions. On June 29 2024 the company disclosed the Progress Announcement on the Proposal on Investing in the
Establishment of Joint Venture Company for Intelligent Perception Business and Related Party Transactions (Announcement No.
2024-046) and the joint venture company has completed the industrial and commercial registration procedures.
On October 23 2024 the company held the 4th meeting of the 11th session of Board of Directors deliberated and approved the
Proposal on the Acquisition of Minority Shareholders’ Equity and Related Party Transactions of Holding Subsidiary. On February 22
2025 the company disclosed the Progress Announcement on the Acquisition of Minority Shareholders' Equity and Related
Transactions of the Holding Subsidiary (Announcement No. 2025-005). The acquisition of minority shareholders' equity of the
holding subsidiary has been completed and the holding subsidiary has completed the industrial and commercial registration
procedures.Related inquiries on the website for disclosure of temporary report of major related party transactions
Disclosure date of Name of website to disclose temporary
Name of temporary announcement temporary announcement
announcement
Announcement on Participating in the Establishment of
2024-04-16
Partnership Enterprise and Related Party Transactions
Announcement on Proposed Capital Increase and Related
2024-05-15
Party Transactions for Participating Companies
Announcement on Investing in the Establishment of Joint
Venture Company for Intelligent Perception Business and 2024-05-15
Related Party Transactions
Announcement on Investing in the Establishment of Joint
Venture Company for Intelligent Perception Business and 2024-06-29 Juchao Website
Related Party Transactions （http://www.cninfo.com.cn）
Announcement on the Acquisition of Minority Shareholders’
2024-10-25
Equity and Related Party Transactions of Holding Subsidiary
Progress Announcement on the Acquisition of Minority
Shareholders' Equity and Related Transactions of the 2024-11-22
Holding Subsidiary
Progress Announcement on the Acquisition of Minority
Shareholders’ Equity and Related Party Transactions of 2025-02-22
Holding Subsidiary
76WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
XV. Significant contract and implementations
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable □ Not applicable
No trusteeship occurred during the reporting period
(2) Contracting
□ Applicable □ Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable □ Not applicable
No leasing occurred during the reporting period
2. Significant guarantees
□ Applicable □ Not applicable
In ten thousand yuan
The Company’ guarantee towards subsidiaries
Disclosu
re date
of
Actual Guarant
announc Count
Name of Guarant Actual guaran Fulfill eed by
ement Guarant Collat er
guarante eed occurrin teed Guarantee period ed or related
related ee type eral Guara
ed object amount g date amoun not parties
to the ntee
t or not
guarante
ed
amount
From the date of
execution of the
main contract up to
the two years from
the date of expiry of
Joint
the performance
2022-12- 2022- liability
VHWX 1000 1000 N N period of the N N
09 12-12 guarante
obligations under
e
the main contract or
December 30 2026
(inclusive
whichever is the
earlier)
Three years from
Joint
the date of receipt
2023-04- 2023- liability
VHIO 55000 7784 N N of the guarantee by N N
28 07-13 guarante
the Italian tax
e
bureau
Six months from the
Joint
maturity date of
2023-04- 2023- liability
VHIO 55000 5309 N N each guaranteed N N
28 11-16 guarante
debt but no later
e
than June 30 2028
77WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Two years after
VHIO has fulfilled
all its obligations as
Joint a supplier or when
2023-04- 2024- 3070 liability it meets the
VHIO 55000 N N N N
28 04-09 6 guarante indicator
e requirements
specified in the
guarantee letter on
its own
Approved total guaranteed amount towards the Total actual amount occurred towards
4120030706
subsidiaries within the reporting period （B1） subsidiaries within the reporting period （B2）
Approved total guaranteed amount towards the Total actual guarantee balance towards
8599944799subsidiaries at the year end B3） subsidiaries at the year end （B4）
Guarantee of subsidiaries to subsidiaries
Total amount of the company’s guarantee(total of the top three)
Approved total amount guaranteed within the Approved total amount guaranteed within the reporting
4120030706
reporting period （A1+B1+C1） period （A1+B1+C1）
Approved total amount guaranteed at the year Approved total amount guaranteed at the year end
8599944799
end （A3+B3+C3） （A3+B3+C3）
Proportion of actual total guaranteed amount
2.26%
(A4+B4+C4) to net assets
Including:
Explanation of situations where there is guarantee liability or evidence indicating the possibility of joint and
(Not involved)
several repayment liability for unexpired guarantee contracts during the reporting period (if any)
Explanation of providing guarantees to external parties in violation of prescribed procedures (if any) (Not involved)
Specific description for using the guarantee by complex method: Nil
3. Entrusted cash asset management
(1) Entrusted financing
□ Applicable □Not applicable
Entrusted financing in the period
In ten thousand yuan
Impairment
amount accrual for
Type Fund sources Amount occurred Undue balance Overdue amount
overdue financial
management
Bank financial
Own funds 84350 55250 0 0
products
Financial products
Own funds 32079 32000 0 0
of securities firms
Trust financial
Own funds 92712 14079 0 0
products
Other type Own funds 42000 64083 0 0
Total 251141 165412 0
Details of high-risk trust financing with significant individual amounts low safety or liquidity
? Applicable □Not applicable
In ten thousand yuan
Nam Type So Invest Metho Refer Exp The The The Subje Will Overvie
St En
e of of the Produ Am urc ment d for ence ecte actual actual amou ct to there w of the
art d
the entrus ct oun e directi determ annu d gains/ recov nt of legal be any matter
dat dat
entru ted type t of on of ining alize retur losses ery of impai proce entrus and
e e
sted institu fun funds remun d rate n (if durin gains/ rment dures ted relevant
78WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
instit tion d eration of any) g the losses provi wealth query
ution (or retur report durin sion manag indexes
(or name n ing g the (if ement (if any)
nam of the perio report any) plans
e of truste d ing in the
the e) perio future
trust d
ee)
The
perfor Has
mance been
Guar
20 20 compa recov
antee
Ow 24 25 Struct rison ered
d 265 2.04
n - - ured bench 818. 777.5 as
Bank Bank floati 00 %- Yes Yes
0 fun 01 06 deposi mark
718
2.9% stipul
ng
ds - - t stipula ated
inco
31 24 ted in in the
me
the contra
contra ct.ct
The
perfor Has
mance been
Non-
20 20 compa recov
guara Cash
Ow 24 24 rison ered
nteed manag 1.60
68 n - - bench 320. 220.4 as
Bank Bank floati ement %- Yes Yes
200 fun 01 12 mark 84 6 2.5% stipul
ng produ
ds - - stipula ated
inco cts
05 31 ted in in the
me
the contra
2024-04-
contra ct.
16
ct
（AnnouThe
ncement
perfor Has
No.:202
Asset mance beenNon- 4-013）
manag compa recov
guara
ement rison ered
nteed
Secu Securi Ot plan bench 0.00 475.6 as
floati 0 Yes Yes
rities ties her incom mark % 9 stipul
ng
e stipula ated
inco
certifi ted in in the
me
cate the contra
contra ct.ct
The
perfor
Has
mance
been
Non- compa
recov
guara rison
Collec ered
nteed bench
Ot tive 0.00 341.4 as
Trust Trust floati mark 0 Yes Yes
her trust % 8 stipul
ng stipula
plan ated
inco ted in
in the
me the
contra
contra
ct.ct
79WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The
perfor Has
mance been
Other Non-
compa recov
profes guara
rison ered
sional nteed Fund
Othe Ot bench 0.00 2576. as 1466
financ floati produ 0 Yes Yes
r her mark % 21 stipul 1.57
ial ng cts
stipula ated
institu inco
ted in in the
tions me
the contra
contra ct.ct
333
1134391.1466
Total 20 -- -- -- -- -- -- -- -- -- --
9.55421.57
0
Expected inability to recover the principal of trust financing or other situations that may lead to impairment in trusting financing
? Applicable □Not applicable
In accordance with the relevant provisions of the Accounting Standards for Enterprises and the company's accounting policies after
full communication between the company and the accounting firm and in light of the actual situation based on the principle of
prudence an impairment test was carried out on the wealth management products held as of December 31 2024. After calculation
the difference between the recoverable amount of the above-mentioned wealth management products and their carrying value is
RMB 146.6157 million which is lower than the carrying value. Therefore the company has provided an impairment provision of
RMB 146.6117 million. For details please refer to the Announcement on the Provision of Impairment Losses for the Year 2024
disclosed by the company on the same day.
(2) Entrusted loans
□ Applicable □ Not applicable
The company had no entrusted loans in the reporting period.
4. Other significant contracts
□ Applicable □ Not applicable
The company had no other significant contract in the reporting period.XVI. Explanation on other material matters
□ Applicable □ Not applicable
XVII. Material matters of subsidiary of the Company
□ Applicable □ Not applicable
The Company disclosed the "Announcement Regarding the Receipt of Case Filing Notice from Public Security Authorities by
Wholly-Owned Subsidiary WFTR and Major Risk Warning" on April 13 2023. On the evening of April 12 2023 the Company’s
wholly-owned subsidiary WFTR received a Case Filing Notice issued by the Xinwu Branch of the Wuxi Public Security Bureau
that the case of contract fraud involving WFTR has met the criteria for criminal case filing and the authorities have officially decided
to register the case.
80WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
On April 15 2025 the Company disclosed the "Progress Announcement on Significant Matters Concerning the Wholly-Owned
Subsidiary". WFTR received the Criminal Judgment ((2024) Su 02 Xing Chu No. 22) delivered by the Wuxi Intermediate People’s
Court of Jiangsu Province. The Court adjudicated the case in which the Wuxi People’s Procuratorate of Jiangsu Province prosecuted
the defendant Liu XX for the crime of contract fraud. On April 11 2025 the Court issued a first-instance judgment convicting the
defendant Liu XX of contract fraud. The seized sealed and frozen assets involved in the case shall be handled by the public security
authorities in accordance with the law.Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the change Change during the year (+/-) After the change
Public
New reserve Bonus
Amount Proportion shares transfer Other Subtotal Amount Proportion
shares
issued into share
capital
I. Restricted - -
56512300.56%3903940.04%
shares 5260836 5260836
1. State-owned
shares
2. State-owned
legal person’s
shares
3. Other - -
56512300.56%3903940.04%
domestic shares 5260836 5260836
Including:
Domestic legal
person’s shares
Domestic
--
natural person’s 5651230 0.56% 390394 0.04%
shares 5260836 5260836
4. Foreign
shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted
99651156399.44%843368433699659589999.96%
shares
1. RMB
82413156382.24%843368433682421589982.67%
ordinary shares
2. Domestically
listed foreign 172380000 17.20% 172380000 17.29%
shares
3. Overseas
listed foreign
shares
4. Others
81WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
--
III. Total shares 1002162793 100.00% 996986293 100.00%
51765005176500
Reasons for changes in share
□Applicable □Not applicable
1. During the reporting period the company bought back and canceled a total of 5176500 shares of 2020 restricted stock that had
been granted but not unlocked resulting in changes in stocks subjects to limited sales conditions;
2. During the reporting period some directors supervisors and senior executives of the company underwent adjustments resulting in
changes in the lock in shares of senior executives leading to changes in stocks subject to limited and unlimited sales conditions.Approval status of changes in share
□Applicable □Not applicable
1. On April 15 2024 the company held the 23rd meeting of the 10th session of the BOD deliberated and approved the Proposal on
Buy-back and Cancellation of Partial Restricted Stocks under 2020 Restricted Stock Incentive Plan. It was agreed to buy back and
cancel a total of 5176500 restricted stocks that had been granted to 535 incentive recipients but did not meet the conditions for
lifting restrictions. As of June 7 2024 the company has completed the buy-back and cancellation procedures for the above-
mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
2. On April 15 2024 the company held the 23rd meeting of the 10th session of the BOD and the 19th meeting of the 10th session of the
Board of Supervisors delivered and approved the Proposal on the Election of Non-independent Director Candidates for the BOD and
the Proposal on the Election of Non-employee Representative Supervisor Candidates for the Board of Supervisors. On May 17 2024
the company held its 2023 annual shareholders' meeting delivered and approved the above-mentioned proposals.
3. On August 20 2024 the company held the 3rd meeting of the 11th session of the Board of Supervisors delivered and approved the
proposal on the Resignation and By-election of Supervisors. On September 20 2024 the company held its first extraordinary general
meeting of shareholders delivered and approved the above-mentioned proposal.Ownership transfer of share changed
□Applicable □Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable □ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable □ Not applicable
2. Changes of lock-up stocks
□Applicable □Not applicable
In Share
Restricted
Opening shares Shares Ending
Date for
Shareholders shares increased released in shares Restricted reasons
released
restricted in the Period restricted
Period
Lock-up shares held by senior
2024-06-
Rong Bin 147000 84000 63000 executives and restricted stocks
07
for stock incentive
Lock-up shares held by senior
Feng Zhiming 48894 48894 --
executives
Lock-up shares held by senior
2024-06-
Xu Sheng 147000 84000 63000 executives and rrestricted stocks
07
for stock incentive
82WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Lock-up shares held by senior
2024-06-
Liu Jinjun 147000 84000 63000 executives and restricted stocks
07
for stock incentive
Lock-up shares held by senior
2024-06-
Li Gang 147000 84000 63000 executives and restricted stocks
07
for stock incentive
2024-06-
Lock-up shares held by senior
Wang 07
225586 225586 0 executives and restricted stocks
Xiaodong 2024-11-
for stock incentive
18
Lock-up shares held by senior 2024-11-
Miao Yuming 91500 91500 0
executives 18
Lock-up shares held by senior 2024-06-
executives and restricted stocks 07
Ou Jianbin 154500 154500 0
for stock incentive 2024-11-
18
Lock-up shares held by senior
Chen Ran 0 1000 1000 --
executives
Lock-up shares held by senior
2024-06-
Xu Yunfeng 193500 105000 88500 executives and restricted stocks
07
for stock incentive
Middle Restricted stocks for stock 2024-06-
management 4531500 4531500 0 incentive 07
Total 5833480 1000 5444086 390394 --
Note: In the aforesaid table shares released in this reporting period refer to the number of granted but not released from restricted
sales which were bought back and canceled by the Company.II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable □ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable □ Not applicable
During the reporting period the restricted shares which has granted without circulation were bought back and canceled partially by
the Company that is 5176500 shares. Total share capital of the Company comes to 996986293 shares from 1002162793 shares.
3. Current internal staff shares
□ Applicable □ Not applicable
III. Particulars about shareholders and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
83WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Total common
stock Total preference Total preference
Total common stock shareholders shareholders with shareholders with voting
shareholders in 60691 at end of last 65913 voting rights 0 rights recovered at end of 0
reporting period-end month before recovered at end of last month before annual
annual report reporting period report disclosed
disclosed
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Number Information of
Proporti Changes
Nature of shareholders of lock- Amount of un- shares pledged
Full name of on of in
sharehold at the end of up lock up stock tagged or frozen
Shareholders shares reporting
ers reporting stocks held State of
held period Amount
period held share
Wuxi Industry State-
Development Group owned 21.25% 211811499 7752101 0 211811499 NA 0
Co. Ltd. corporate
ROBERT BOSCH Foreign
14.73% 146854133 4012733 0 146854133 NA 0
GMBH corporate
Hong Kong
Foreign
Securities Clearing 1.91% 19022234 1319913 0 19022234 NA 0
corporate
Company
State-
SOOCHOW 1360369
owned 1.36% 13603695 0 13603695 NA 0
Securities corporate 5
CCB Life -
1235991
Traditional Other 1.24% 12359918 0 12359918 NA 0
8
insurance
NSSF-413 Other 1.08% 10799995 569995 0 10799995 NA 0
FIDELITY INVMT
TRT FIDELITY Foreign
0.86% 8579471 1369085 0 8579471 NA 0
INTL SMALL CAP corporate
FUND
Basic Pension
Insurance Fund- Other 0.69% 6872193 -769500 0 6872193 NA 0
1003
Guolian An Fund -
China Pacific Life
Insurance Co. Ltd.- Dividend
Insurance - Guolian
-
An Fund - China Other 0.53% 5300000 0 5300000 NA 0
1587979
Pacific Life Stock
Relative Yield
(Dividend) Single
Asset Management
Plan
Domestic
Xie Zuogang natural 0.51% 5132967 0 0 5132967 NA 0
person
Strategy investor or general legal
person becoming the top 10
shareholders by placing new None
shares (if applicable) (refer to
Note 3)
Among the aforesaid shareholders there has no associated relationship between Wuxi Industry
Explanation on associated Development Croup Co. Ltd. the first largest shareholder of the Company and other
relationship among the aforesaid shareholders; and they do not belong to the persons acting in concert regulated by the
shareholders Management Measure of Information Disclosure on Change of Shareholding for Listed
Company.Description of the above
None
shareholders in relation to
84WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
delegate/entrusted voting rights
and abstention from voting rights.Special note on the repurchase
As of Dec. 31 2024 the repurchase special securities account of Weifu High-Technology
account among the top 10
Group Co. Ltd had 25000000 shares of ordinary A-Share hereby stated that in accordance
shareholders (if applicable) (refer
to Note 10) with relevant requirement they are not included in the top 10 shareholders of the Company.Particular about top ten shareholders with un-lock up stocks held（Excluding shares lent through refinancing and Lock-up sharesheld by senior executives ）
Amount of un-lock Shares held
Shareholders’ name up stocks held at
Period-end Type Amount
RMB common
Wuxi Industry Development Group Co. Ltd. 211811499 211811499
shares
RMB common
115260600
shares
ROBERT BOSCH GMBH 146854133
Domestically listed
31593533
foreign shares
RMB common
Hong Kong Securities Clearing Company 19022234 19022234
shares
RMB common
SOOCHOW Securities 13603695 13603695
shares
RMB common
CCB Life - Traditional insurance 12359918 12359918
shares
RMB common
NSSF-413 10799995 10799995
shares
Domestically listed
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND 8579471 8579471
foreign shares
RMB common
Basic Pension Insurance Fund- 1003 6872193 6872193
shares
Guolian An Fund - China Pacific Life Insurance Co. Ltd. -
RMB common
Dividend Insurance - Guolian An Fund - China Pacific Life Stock 5300000 5300000
shares
Relative Yield (Dividend) Single Asset Management Plan
Domestically listed
Xie Zuogang 5132967 5132967
foreign shares
Among the aforesaid shareholders there has no associated relationship between
Explanation on associated relationship or
Wuxi Industry Development Croup Co. Ltd. the first largest shareholder of the
consistent actors within the top 10 un-lock up
Company and other shareholders; and they do not belong to the persons acting in
shareholders and between top 10 un-lock up
concert regulated by the Management Measure of Information Disclosure on
shareholders and top 10 shareholders
Change of Shareholding for Listed Company.Explanation on top 10 shareholders involving
None
margin business (if applicable) (refer to note 4)
Shareholders holding 5% or more shares of the company top 10 shareholders or top 10 un-lock up shareholders participated in the
lending of shares through refinancing business
□Applicable □ Not applicable
Changes in top 10 shareholders and top 10 un-lock up shareholders due to participating in the lending of shares through refinancing
business
□Applicable □ Not applicable
Whether top 10 shareholders or top 10 un-lock up shareholders have a buy-back agreement dealing in reporting period or not
□ Yes □ No
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
85WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Type of controlling shareholders: legal person
Legal
Controlling person/person in
Date of foundation Organization code Main operation business
shareholders charge of the
unit
External investment with own funds;
housing rental services; self-operation and
acting as an agent for the import & export of
various commodities and technologies
(except for commodities and technologies
Wuxi Industry
that restricted or prohibited for import &
Development Group Yao Zhiyong October 5 1995 913202001360026543
export by the State) domestic trading
Co. Ltd.(restricted and prohibited projects by the
State excluded) (For those to be approved
by law business activities can only be
carried out after approval by relevant
departments)
Equity of other 1.The majority shareholder of the Company Wuxi Industry Group holds 30.42% stakes of Wuxi Taiji
domestic/oversea Industry Corporation Limited (stock code: 600667).listed company 2.The majority shareholder of the Company Wuxi Industry Group directly holds 15.65% stakes of Wuxi Xin
controlled by the Hongtai Electrical Technology Co. Ltd. (Stock Code: 603016) and indirectly holds 12.26% stakes of Wuxi
controlling Xinhongtai Electrical Technology Co. Ltd. through Wuxi Guosheng Asset Management Co. Ltd actually
shareholder as well controlled by it.as stock-joint in
reporting period
Changes of controlling shareholders in reporting period
□ Applicable □ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller and person acting in concert of the Company
Nature of actual controller: local state-owned assets management entity
Type of actual controller: legal person
Legal person/person in Date of Organization
Name of actual controlling shareholders Main operation business
charge of the unit foundation code
The State-owned Assets Supervision &
Administration Commission of Wuxi Ding Hongjun ~ State-owned Assets management
Municipality of Jiangsu Province
Equity of domestic/oversea listed
company control by actual controller in NA
reporting period
Changes of actual controller in the reporting period
□ Applicable □ Not applicable
No changes of actual controllers for the Company in the reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
86WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Wuxi State-owned Assets Supervision &
Department of Finance of
Administration Commission of State
Jiangsu province
Council
100%
Wuxi Guofa Capital Operation 58.82% 4.35%
Co. Ltd.
36.83%
Wuxi Industry Development Group Co. Ltd.
21.38%
Weifu High-Technology Group Co. Ltd..Note: The above reflects the shareholding percentages as of the date of this Annual Report disclosure.The actual controller controlling the company through trust or other asset management methods
□ Not applicable □Applicable
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and its
persons acting in concert accounts for 80% of the shares held by them
□ Applicable □ Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable □ Not applicable
Corporate Legal
Registered
sharehold person/person in Establishment date Main business or management activity
capital
ers charge of entity
Development manufacture and distribution of
products technologies systems solutions and
service performance especially in mobile
electrical engineering electronics mechanical
engineering mechanics metals and other materials
medicine logistics communications and
ROBERT Holzwarth
1200 million information technology including solutions based
BOSCH Bettina November 15 1886
euros on data and related fields. The Company’s goal is
GMBH Lepschy Markus
to further perform regionally based and business-
related services.The Company may directly or indirectly enter into
various business transactions to achieve this goal.In order to achieve the goal the Company can
establish acquire and participate in business
87WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
activities in any form permitted by law or carry out
business activities through them and organize under
unified management. The Company may restrict
some of the activities described in paragraph 1
above or hold and manage their participating
interests.
6. Restriction on shares reduction for controlling shareholders actual controllers restructuring side and
other undertakings entities
□ Applicable □ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
? Applicable □ Not applicable
The proportion
of repurchased
Proposed
shares to the
Disclosure Number of Proportion to buy-back Proposed Share buy- Repurchase
underlying
time of the shares buy- total share amount (ten buy-back back d quantity
stocks involved
plan back (shares) capital thousand period purpose (shares)
in the equity
yuan)
incentive plan
(if any)
Intended
Not higher
for
than RMB
Not higher implementi
725.00
than ng
Not higher million From Apr.
25000000 employee
April 19 than 2.48% (inclusive) 15 2022 to
and not stock 25000000
2022 and lower and not Apr. 14
lower than ownership
than 1.24% lower than 2023
12500000 plans or
RMB 362.5
shares equity
million
incentive
(inclusive)
plans
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable □ Not applicable
88WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section VIII. Preferred Stock
□ Applicable □ Not applicable
89WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section IX. Corporate Bonds
□ Applicable □ Not applicable
90WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Section X. Financial Report
I. Auditor’s report
Type of audit opinion Standard Unqualified Opinion
Signing date of audit report April 16 2025
Name of audit institute Zhongxinghua Certified Public Accountants LLP
Serial of Auditing Report Zhongxinghua Audit (2025) No. 020737
Name of CPA Pan Hua Zhang Xiaoping
Auditor’s Report
Zhongxinghua Audit (2025) No. 020737
To the Shareholders of Weifu High-Technology Group Co. Ltd.:
I. Audit opinions
We have audited the financial statement of Weifu High-Technology Group Co. Ltd. (hereinafter referred to
as “Weifu High-Technology”) including the Consolidated & Parent Company Balance Sheet as of 31 December
2024 Consolidated & Parent Company Income Statement Consolidated & Parent Company Cash Flow Statement
Consolidated & Parent Company Owner’s Equity Change Statement and relevant Financial Statement Notes in
2024.
In our opinions the attached financial statement is formulated pursuant to provisions in the Accounting
Standards for Business Enterprises from all major perspectives and offers a fair view on financial conditions of
consolidated and parent company of Weifu High-Technology as of 31 December 2024 as well as operation
performance and cash flow of consolidated and parent company in 2024.II. Foundation of audit opinions
We conducted the audit work as per provisions of the Chinese Certified Public Accountant Auditing
Standards. The part of “CPA’s responsibilities for financial statement audit” in the audit report further elaborates
on our responsibilities under the Standards. In compliance with the code of professional ethics for Chinese
Certified Public Accountant we are independent from Weifu High-Technology and fulfill other responsibilities of
professional ethics. We believe the audit evidence we obtained is sufficient and appropriate and provides the
foundation for our audit opinions.III. Key audit events
Key audit events are the events we deem the most important for auditing the financial statement in the
current period based on our professional judgment. These events shall be responded against the backdrop of
conducting overall audit of the financial statement and forming opinions and we do not express separate opinions
on these events. We determine that the following events are key audit events for communication in the audit
91WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
report.(I) Income recognition
1. Event description
As stated in the Financial Statement Note V.31 Revenue and Note VII.47 Operating Revenue and Operating
Costs of the financial statements Weifu High-Technology earned operating income of RMB 11167263200 in
2024. Considering operating income as one of the main sources of profits for Weifu High-Technology with
significant impact on the overall financial statement there is an inherent risk that the management level of Weifu
High-Technology (hereinafter referred to as the management level) may manipulate the timing of income
recognition in order to achieve specific target or expectation and therefore we regard income recognition as a key
audit event.
2. Audit response
(1) Know about the key internal controls regarding income recognition evaluate the design of such controls
determine whether they have been implemented and test the effectiveness of operating relevant internal
controls;
(2) Select customer samples to check their sales contracts know about the main contract clauses or
conditions and evaluate whether the specific methods and timing of income recognition follow the standards
and industrial practices;
(3) Combined with the industrial data and status quo of the industry in which Weifu High-Technology
operates perform analytical procedures including comparative analysis of current income cost and gross
profit margin of each business segment with the last period and comparative analysis of gross profit margin
of each business segment with the same industry and judge the rationality of income fluctuations;
(4) Randomly check sales contracts or orders outbound delivery notes logistics documents customs
declaration sheets receipts settlement statements sales invoices and other documents related to income
recognition and verify the authenticity and completeness of income;
(5) Select customer samples to perform accounts receivable and income confirmation procedures verify the
authenticity and completeness of income and rationality of income recognition timing;
(6) Perform income cut-off testing select income samples before and after the balance sheet date verify
supportive documents such as outbound delivery notes customs declaration sheets receipts and settlement
statements and check whether incomes are recorded in the appropriate accounting period.(II) Provision for expected credit losses of Weifu International Trade “platform trade” business
portfolio in other receivables
1. Event description
As stated in the Financial Statement Note XVIII. 7 “Other Important Matters Affecting Investors’ Decisions”of the financial statements as of 31 December 2024 the book balance of other receivables arising from “platformtrading” contract fraud event of Weifu International Trade was RMB 2542263400 and the provision for
expected credit losses of RMB 1644068300 was made. Because the recoverable amount of the “platform trade”
business portfolio creditor’s right involves significant accounting estimates and judgments made by the
management level it is important to the financial statement and therefore we determine the provision for
92WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
expected credit losses of “platform trade” business portfolio in other receivables as a key audit event.
2. Audit response
(1) Know about the specific situation and status quo of the “platform trade” event from the management level
obtain the accounting estimate method and result of the management level provision for expected credit
losses of the “platform trade” business portfolio creditor’s right inquire the management level about the
source of reference of making significant judgments on the recoverable amount of the “platform trade”
business portfolio creditor’s right compare and analyze the changes in the reference of the recoverable
amount of the “platform trade” business portfolio creditor’s right compared with that at the end of last year
and evaluate its rationality;
(2) Visit the competent authority regarding the source of reference of making estimates by the management
level verify the authenticity and reliability of the source of reference and verify the changes in the reference
of recoverable amount compared with the end of last year and the reasons;
(3) Know about the situation of physical assets recovered by the public security authority and transferred to
the company for safekeeping perform sampling procedures confirm the asset status and verify the value by
checking the market price;
(4) Perform recalculation procedures according to the reference of the recoverable amount of the “platformtrade” business portfolio creditor’s right compare it with the estimation results of the management level
and further judge whether the management level’s conclusion is reasonable that the expected credit losses of
“platform trade” business portfolio creditor’s right need no further provision or significant reversal;
(5) Note the subsequent progress of the event obtain important information such as criminal judgment and
consider the impact on the financial statement in the current period;
(6) Check whether the information concerning “platform trade” business has been properly presented and
disclosed in the financial statement.(III) Recognition of investment income from associated enterprises
1. Event description
As stated in the Financial Statement Note VII.55 “Investment Income” of the financial statements in 2024
the long-term equity investment income accounted for by Weifu High-Technology using the equity method was
RMB 1481848400 accounting for over 80% of the total profit this year. Because the investment income of
associated enterprises is one of the main sources of profits for Weifu High-Technology and the accuracy of
investment income accounting exerts a significant impact on Weifu High-Technology’s financial statement we
determine the recognition of investment income from associated enterprises as a key audit event.
2. Audit response
Know about the key internal controls regarding the investment of Weifu High-Technology and associated
enterprises evaluate the design of internal controls and test the operating effectiveness;
Obtain the associated enterprise articles of association investment agreement business license and other
materials check the shareholding ratio and time of long-term equity investment and recognize whether the long-
term equity investment accounting method is correct;
Obtain and check the associated enterprise audit report know about the significant accounting policies and
93WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
accounting estimates analyze their consistency and consider their impact on the financial statement of Weifu
High-Technology;
Perform analytical review procedures on the financial statement of associated enterprises know about the
reasons for significant changes and judge the rationality and evaluate whether the financial statement has fairly
reflected the financial status and operating results in major perspectives as a whole;
Recalculate the investment income of Weifu High-Technology associated enterprises focus on the offsetting
of unrealized internal transaction gains and losses between the company and associated enterprises and review
whether the recognition of corporate investment income is accurate;
Know about the actual operation and profit distribution of associated enterprises check the supportive
materials on corporate recognition of investment income and receipt of cash dividends and compare and analyze
the overall rationality of investment income recognition;
Check whether the information concerning associated enterprise investment income has been properly
presented in the financial statement.IV. Other information
The management level of Weifu High-Technology (hereinafter referred to as the management team) is
responsible for other information. Other information includes the information covered in the 2024 annual report of
Weifu High-Technology but excludes the financial statement and our audit report.Our audit opinions on financial statements do not cover other information and we do not express any form of
verification conclusions on other information.In conjunction with our audit of the financial statement our responsibility is to read other information and in
the process consider whether the other information is materially inconsistent with the financial statement or what
we learned during the audit process or appears to be materially misrepresented.Based on the work we have conducted if we determine that there is a material misstatement of other
information we should report such fact. We have nothing to report in this regard.V. Management and governance liabilities for financial statement
The Management is responsible for preparing the financial statements in accordance with GAAP and
presenting them fairly; designing implementing and maintaining necessary internal control so that there isn't any
material misstatement in the financial statements due to fraud or error.When preparing the financial statement the management level is responsible for assessing Weifu High-
Technology’s capabilities of sustainable operation disclosing events related to sustainable operation (if
applicable) and adopting the assumption of sustainable operation unless the management level plans to liquidate
Weifu High-Technology terminate the operation or there is no other practical option.The governance level is responsible for supervising the financial report process of Weifu High-Technology.VI. Auditor’s Responsibility for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free
from material misstatement due to fraud or error and issue an audit report containing audit opinions. Reasonable
94WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
assurance is a high level of assurance but it does not guarantee the audit performed in accordance with auditing
standards can surely find a certain existing material misstatement. Misstatement may be caused by fraud or error;
if a reasonably expected misstatement alone or aggregated may affect financial statement user’s economic
decision made based on financial statement it is generally considered to be material misstatement.As part of an audit in accordance with auditing standards we exercise professional judgment and maintained
professional skepticism throughout the audit. Meanwhile we also performed the following tasks:
(1) Identify and assess material misstatement risk of financial statement caused by fraud or error design and
implement audit procedures to address these risks and obtain sufficient and appropriate audit evidences as the
basis for issuing audit opinions. Since fraud may involve collusion forgery intentional omission false statement
or overriding internal controls the risk of failing to detect material misstatement due to fraud is higher than that
due to error.
(2) Learn about internal control concerning audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policy adopted by the management level and the
reasonableness of accounting estimates and related disclosures.
(4) Determine whether the going-concern assumption used by management is appropriate. Meanwhile based
on the audit evidences acquired it may lead to conclusions on whether there are significant uncertainties in the
matters or circumstances causing major doubts about the capabilities of Weifu High-Technology's sustainable
operation. If we conclude that there are significant uncertainties the auditing standards require us to notify the
users about relevant disclosures of the financial statement in the audit report; if the disclosures are insufficient we
should express opinions without reservations. Our conclusions are based on the information available as of the
audit report date. Nevertheless future matters or circumstances may lead to the inability of Weifu High-
Technology for sustainable operation.
(5) Evaluate the overall presentation structure and content of financial statement and evaluate whether the
financial statement has fairly reflected relevant transactions and events.
(6) Sufficient and appropriate audit evidence on the financial information of Weifu High-Technology entity
or business activities is acquired to express opinion on the financial statement. We are responsible for guiding
supervising and executing group audit. We hold full responsibilities for the audit opinions.We communicate with the governance about planned audit scope schedule major audit findings and other
matters including the internal control flaws that need attention which we have identified during the audit.We also provide declaration to the governance level regarding compliance with professional ethical
requirements of independence and communicate with the governance level about all relationships and other
matters that may reasonably be considered as affecting our independence as well as relevant precautions (if
applicable).From the matters communicated with the governance level we determine which matters are most important
to the financial statement audit in the current period and thus constitute key audit matters. We describe these
matters in the audit report unless laws and regulations prohibit public disclosure of these matters or in rare cases
if it is reasonably expected that the negative consequences of communicating a matter in the audit report outweigh
the benefits of public interest we determine this matter shall not be communicated in the audit report.
95WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Zhongxinghua certified public accountants Chinese CPA: Pan Hua
(Special General Partnership) (Project partner)
Beijing China Chinese CPA: Zhang Xiaoping
16 April 2025
96WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
II. Financial Statement
Statement in Financial Notes are carried In RMB
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co. Ltd.Dec. 31 2024
In RMB
Item Dec. 31 2024 Dec. 31 2023
Current assets:
Monetary funds 2246600451.52 2274771699.14
Settlement provisions
Capital lent
Trading financial assets 1429682635.57 2391487144.96
Derivative financial assets
Note receivable 99914699.81 144976174.84
Account receivable 3737653893.03 3857539958.20
Receivable financing 1713187182.25 1661749949.46
Accounts paid in advance 93283466.49 76202271.16
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 930529007.57 919684126.81
Including: Interest receivable
Dividends receivable 5357758.49
Buying back the sale of financial assets
Inventories 2308920401.14 2068533030.94
Including: data source
Contract assets
Assets held for sale
Non-current asset due within one year 559070575.38
Other current assets 188988459.46 325909383.11
Total current assets 13307830772.22 13720853738.62
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
97WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Long-term equity investment 7035098878.59 5947633507.07
Investment in other equity instrument 677790690.00 677790690.00
Other non-current financial assets 697471349.81 804350120.06
Investment real estate 44960930.39 46926716.49
Fixed assets 4461619375.21 3969574102.87
Construction in progress 380321816.50 564605931.90
Productive biological asset
Oil and gas asset
Right-of-use assets 67765442.37 48832472.85
Intangible assets 480540808.88 484834882.53
Including: data source
Expense on research and development
Including: data source
Goodwill 32605318.22 122316819.20
Long-term expenses to be apportioned 22202465.04 24714632.10
Deferred income tax asset 303420166.65 311912955.07
Other non-current asset 893272397.34 1356741223.05
Total non-current asset 15097069639.00 14360234053.19
Total assets 28404900411.22 28081087791.81
Current liabilities:
Short-term loans 393120147.95 838889557.51
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 2014217247.05 1759062642.60
Account payable 3899945192.28 3668850423.29
Accounts received in advance 2652511.04 2911439.65
Contractual liability 56148545.13 77686881.24
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 405278048.92 334810352.56
Taxes payable 51710218.41 56581082.49
Other account payable 44547794.12 108893486.63
Including: Interest payable
Dividend payable
Commission charge and commission payable
Reinsurance payable
98WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Liability held for sale
Non-current liabilities due within one year 220703888.53 38084321.10
Other current liabilities 285386237.68 257139908.60
Total current liabilities 7373709831.11 7142910095.67
Non-current liabilities:
Insurance contract reserve
Long-term loans 100000000.00 299800000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 47316516.48 37733196.51
Long-term account payable 27005082.11 28035082.11
Long-term wages payable 46118861.68 129844482.80
Accrued liability 121869551.76 38016428.52
Deferred income 151419335.74 188773622.29
Deferred income tax liabilities 24870008.46 37752122.87
Other non-current liabilities
Total non-current liabilities 518599356.23 759954935.10
Total liabilities 7892309187.34 7902865030.77
Owner’s equity:
Share capital 996986293.00 1002162793.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital reserve 3263649101.44 3308170140.96
Less: inventory shares 469722092.24 533289512.24
Other comprehensive income 10132405.39 54156915.97
Reasonable reserve 6257090.28 3641439.97
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 15523124882.77 15054950398.12
Total owner’ s equity attributable to parent company 19840528176.64 19399892671.78
Minority interests 672063047.24 778330089.26
Total owner’ s equity 20512591223.88 20178222761.04
Total liabilities and owner’ s equity 28404900411.22 28081087791.81
Legal Representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Wu Junfei
99WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2. Balance Sheet of Parent company
In RMB
Item Dec. 31 2024 Dec. 31 2023
Current assets:
Monetary funds 466892236.52 714826120.43
Trading financial assets 878496571.74 2251060973.85
Derivative financial assets
Note receivable 18662983.17 23523055.70
Account receivable 1489935690.05 1384059380.88
Receivable financing 346215286.06 227811949.87
Accounts paid in advance 51792719.25 45875061.25
Other account receivable 1429367035.46 1370649392.28
Including: Interest receivable 6702396.94 842323.12
Dividends receivable 5357758.49
Inventories 523443471.86 549696080.27
Including: data source
Contract assets
Assets held for sale
Non-current asset due within one year 222906739.73
Other current assets 236029.38 11054042.33
Total current assets 5427948763.22 6578556056.86
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 9379389807.57 8008012424.29
Investment in other equity instrument 601850690.00 601850690.00
Other non-current financial assets 697471349.81 804350120.06
Investment real estate 33322617.00 34453448.06
Fixed assets 2767316409.85 2376023503.55
Construction in progress 43260711.62 218670126.54
Productive biological asset
Oil and gas asset
Right-of-use assets 4320822.79 4290695.37
Intangible assets 251051539.24 220397330.28
Including: data source
Expense on research and development
Including: data source
Goodwill
100WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Long-term expenses to be apportioned 910555.82 3759490.67
Deferred income tax asset 131997984.30 109441564.66
Other non-current asset 538364812.82 731758973.92
Total non-current asset 14449257300.82 13113008367.40
Total assets 19877206064.04 19691564424.26
Current liabilities:
Short-term loans 480490722.23
Trading financial liability
Derivative financial liability
Note payable 344127173.09 365959174.48
Account payable 1127464058.49 1166435681.25
Accounts received in advance
Contractual liability 12478649.93 8548593.06
Wage payable 215266682.43 168228976.90
Taxes payable 9470631.10 5327449.07
Other account payable 670207729.91 216435787.01
Including: Interest payable 2509683.34 1123734.04
Dividend payable
Liability held for sale
Non-current liabilities due within one year 201358028.22 28000984.47
Other current liabilities 20837034.26 38294705.54
Total current liabilities 2601209987.43 2477722074.01
Non-current liabilities:
Long-term loans 100000000.00 299800000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 2703583.48 1836800.62
Long-term account payable
Long-term wages payable 15212070.31 95678717.83
Accrued liability 22565446.22 10709925.00
Deferred income 130406464.59 160462135.18
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 270887564.60 568487578.63
Total liabilities 2872097552.03 3046209652.64
Owner’s equity:
Share capital 996986293.00 1002162793.00
Other equity instrument
Including: Preferred stock
101WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Perpetual capital securities
Capital reserve 3394923686.54 3412506010.91
Less: inventory shares 469722092.24 533289512.24
Other comprehensive income
Reasonable reserve
Surplus public reserve 510100496.00 510100496.00
Retained profit 12572820128.71 12253874983.95
Total owner’ s equity 17005108512.01 16645354771.62
Total liabilities and owner’ s equity 19877206064.04 19691564424.26
102WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
3. Consolidated Profit Statement
In RMB
Item 2024 2023
I. Total operating income 11167263155.85 11093141950.98
Including: Operating income 11167263155.85 11093141950.98
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 10731261302.02 10773357152.61
Including: Operating cost 9137167016.39 9238560615.04
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 slips
Reinsurance expense
Tax and extras 59699756.95 64464506.58
Sales expense 173294600.83 142323212.30
Administrative expense 726610451.29 612096726.09
R&D expense 690258974.54 667871159.95
Financial expense -55769497.98 48040932.65
Including: Interest expenses 25385434.57 95145829.10
Interest income 101699691.65 40360794.63
Add: Other income 195531320.78 97464970.76
Investment income (Loss is listed with “-”) 1535039086.78 1701990058.24
Including: Investment income on affiliated company
1481848406.861596392131.72
and joint venture
The termination of income recognition for financial
-3521058.98
assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)Income from change of fair value (Loss is listed with “--17300039.609767646.64
”)
Loss of credit impairment (Loss is listed with “-”) 6063789.73 -4402449.07
Losses of devaluation of asset (Loss is listed with “-”) -407383027.85 -331275532.54
Income from assets disposal (Loss is listed with “-”) 10467340.59 128314484.53
III. Operating profit (Loss is listed with “-”) 1758420324.26 1921643976.93
Add: Non-operating income 3924878.00 17111807.24
Less: Non-operating expense 5130865.58 4411191.85
IV. Total profit (Loss is listed with “-”) 1757214336.68 1934344592.32
Less: Income tax expense 40043146.12 21195062.23
V. Net profit (Net loss is listed with “-”) 1717171190.56 1913149530.09
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 1717171190.56 1913149530.09
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owners of parent company 1659533740.63 1837291259.68
103WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2.Minority shareholders’ gains and losses 57637449.93 75858270.41
VI. Net after-tax of other comprehensive income -44024510.58 55068226.10
Net after-tax of other comprehensive income attributable to
-44024510.5855068226.10
owners of parent company
(I) Other comprehensive income items which will not be
135700.88-1189898.59
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured 135700.88 -1189898.59
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
-44160211.4656258124.69
reclassified subsequently to profit or loss
1.Other comprehensive income under equity method that can
transfer to gains/losses
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
-44160211.4656258124.69
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 1673146679.98 1968217756.19
Total comprehensive income attributable to owners of parent
1615509230.051892359485.78
Company
Total comprehensive income attributable to minority
57637449.9375858270.41
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 1.71 1.88
(ii) Diluted earnings per share 1.71 1.88
Legal Representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Wu Junfei
104WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
4. Profit Statement of Parent Company
In RMB
Item 2024 2023
I. Operating income 3397375738.23 3568007626.04
Less: Operating cost 2748517500.94 2877223061.80
Taxes and surcharge 25293144.60 26020608.91
Sales expenses 18606129.79 20326167.81
Administration expenses 342648893.66 317148490.36
R&D expenses 206660519.14 256555205.86
Financial expenses -8055265.06 43029546.08
Including: Interest expenses 25217594.46 70100281.69
Interest income 45539582.29 22232354.69
Add: Other income 104031656.48 60045052.24
Investment income (Loss is listed with “-”) 1431219662.62 1551999553.88
Including: Investment income on affiliated Company and
1237057888.341372133258.69
joint venture
The termination of income recognition for financial
-312015.98
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 “-”) -19486103.43 9325222.30
Loss of credit impairment (Loss is listed with “-”) 2154583.72 599535.81
Losses of devaluation of asset (Loss is listed with “-”) -215462101.10 -71109221.75
Income on disposal of assets (Loss is listed with “-”) 115716424.53 8262258.43
II. Operating profit (Loss is listed with “-”) 1481878937.98 1586826946.13
Add: Non-operating income 764049.54 978746.24
Less: Non-operating expense 430984.94 1204343.16
III. Total Profit (Loss is listed with “-”) 1482212002.58 1586601349.21
Less: Income tax -22556419.64 288204.25
IV. Net profit (Net loss is listed with “-”) 1504768422.22 1586313144.96(i) continuous operating net profit (net loss listed with ‘-”) 1504768422.22 1586313144.96(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
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
105WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
7.Other
VI. Total comprehensive income 1504768422.22 1586313144.96
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2024 2023
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
11454631514.4411815615875.97
services
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 158735481.42 247423811.65
Other cash received concerning operating activities 110017342.88 304312552.49
Subtotal of cash inflow arising from operating activities 11723384338.74 12367352240.11
Cash paid for purchasing commodities and receiving labor service 7529154745.16 8080288216.69
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 1909179859.57 1566762591.01
Taxes paid 284195491.88 421031865.46
Other cash paid concerning operating activities 418521593.39 673019655.05
Subtotal of cash outflow arising from operating activities 10141051690.00 10741102328.21
Net cash flows arising from operating activities 1582332648.74 1626249911.90
II. Cash flows arising from investing activities:
Cash received from recovering investment 4194627417.02 3313684345.66
Cash received from investment income 1135521634.62 2327386986.20
Net cash received from disposal of fixed intangible and other
47050793.21146353685.07
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 18840000.00
Subtotal of cash inflow from investing activities 5377199844.85 5806265016.93
Cash paid for purchasing fixed intangible and other long-term
1080918168.791113912460.11
assets
Cash paid for investment 4147277084.93 3455088494.14
106WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 13716100.33
Other cash paid concerning investing activities 13036225.94
Subtotal of cash outflow from investing activities 5228195253.72 4595753280.52
Net cash flows arising from investing activities 149004591.13 1210511736.41
III. Cash flows arising from financing activities:
Cash received from absorbing investment 67300000.00
Including: Cash received from absorbing minority shareholders’
67300000.00
investment by subsidiaries
Cash received from loans 423886845.30 2696375308.64
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 491186845.30 2696375308.64
Cash paid for settling debts 933749933.35 5372848659.59
Cash paid for dividend and profit distributing or interest paying 1278179683.86 232202783.52
Including: Dividend and profit of minority shareholder paid by
68778370.0440453107.58
subsidiaries
Other cash paid concerning financing activities 282460203.37 164632874.00
Subtotal of cash outflow from financing activities 2494389820.58 5769684317.11
Net cash flows arising from financing activities -2003202975.28 -3073309008.47
IV. Influence on cash and cash equivalents due to fluctuation in
-33176286.7821416449.75
exchange rate
V. Net increase of cash and cash equivalents -305042022.19 -215130910.41
Add: Balance of cash and cash equivalents at the period-begin 2061986694.41 2277117604.82
VI. Balance of cash and cash equivalents at the period -end 1756944672.22 2061986694.41
6. Cash Flow Statement of Parent Company
In RMB
Item 2024 2023
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
3099128968.362992755592.93
services
Write-back of tax received 125190524.09
Other cash received concerning operating activities 80207980.24 77926649.97
Subtotal of cash inflow arising from operating activities 3179336948.60 3195872766.99
Cash paid for purchasing commodities and receiving labor service 2264173817.93 1844781220.30
Cash paid to/for staff and workers 737849558.75 663056090.53
Taxes paid 75566016.29 141072774.09
Other cash paid concerning operating activities 79310706.82 253804167.34
Subtotal of cash outflow arising from operating activities 3156900099.79 2902714252.26
Net cash flows arising from operating activities 22436848.81 293158514.73
II. Cash flows arising from investing activities:
Cash received from recovering investment 1829627417.02 2492465818.32
Cash received from investment income 958618318.14 2060589193.54
Net cash received from disposal of fixed intangible and other
36500011.9314663395.44
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 160573673.43 326061324.33
Subtotal of cash inflow from investing activities 2985319420.52 4893779731.63
Cash paid for purchasing fixed intangible and other long-term
476629689.83641672060.41
assets
107WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Cash paid for investment 1304396588.44 2112142787.05
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 204486765.84 223723855.14
Subtotal of cash outflow from investing activities 1985513044.11 2977538702.60
Net cash flows arising from investing activities 999806376.41 1916241029.03
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 1795000000.00
Other cash received concerning financing activities 1635000000.00 300000000.00
Subtotal of cash inflow from financing activities 1635000000.00 2095000000.00
Cash paid for settling debts 504700000.00 3107144800.00
Cash paid for dividend and profit distributing or interest paying 1196883563.40 153437599.42
Other cash paid concerning financing activities 1199168654.01 1137043447.66
Subtotal of cash outflow from financing activities 2900752217.41 4397625847.08
Net cash flows arising from financing activities -1265752217.41 -2302625847.08
IV. Influence on cash and cash equivalents due to fluctuation in
-3813380.233332858.57
exchange rate
V. Net increase of cash and cash equivalents -247322372.42 -89893444.75
Add: Balance of cash and cash equivalents at the period -begin 713516740.43 803410185.18
VI. Balance of cash and cash equivalents at the period -end 466194368.01 713516740.43
108WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
7. Consolidated Statement of Changes in Owners’ Equity
Current period
In RMB
2024
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Other Provisi Total
Perpet Less: Reasona
Minority
Share Capital comprehen Surplus on of Retained Oth owners’
Inventory ble Subtotal interests
capital Preferr ual Oth reserve sive reserve genera profit er
equity
ed capital shares reserve
er income l risk
stock securit
ies
I. Balance
at the end 100216279 330817014 53328951 54156915.9 3641439. 51010049 150549503 193998926 77833008 201782227
of the last 3.00 0.96 2.24 7 97 6.00 98.12 71.78 9.26 61.04
year
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Other
II. Balance
at the 100216279 330817014 53328951 54156915.9 3641439. 51010049 150549503 193998926 77833008 201782227
beginning 3.00 0.96 2.24 7 97 6.00 98.12 71.78 9.26 61.04
of this year
III.Increase/
Decrease - - - -
-2615650.468174484.440635504.334368462.in this year 44521039.5 63567420. 44024510.5 10626704
5176500.0031658684
(Decrease 2 00 8 2.02
is listed
with “-”)
(i) Total
-
comprehen 165953374 161550923 57637449. 167314667
44024510.5
sive 0.63 0.05 93 9.98
8
income
(ii)
Owners’
-----
devoted -
87144811.763567420.28753891.795065184.123819076.
and 5176500.00
60065834
decreased
capital
109WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
1.Common
shares
67300000.67300000.0
invested by
000
shareholde
rs
2.Capital
invested by
holders of
other
equity
instrument
s
3. Amount
reckoned
into
owners
equity with
share-
based
payment
-----
-
4. Other 87144811.7 63567420. 28753891.7 16236518 191119076.3
5176500.00
60064.584
----
(III) Profit
11913592511913592568778370.126013762
distribution
5.985.98046.02
1.
Withdrawa
l of surplus
reserves
2.
Withdrawa
l of general
risk
provisions
3.
Distributio
----
n for
11858232711858232768778370.125460164
owners (or
7.467.46047.50
shareholde
rs)
4. Other -5535978.52 -5535978.52 -5535978.52
(IV)
Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed
to capital
(share
capital)
110WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
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
comprehen
sive
income
6. Other
(V)
2615650.
Reasonable 2615650.31 -60937.33 2554712.98
31
reserve
1.
Withdrawa
291481429148145.63267083.332415228.9
l in the
5.67729
report
period
2. Usage in
265324926532495.33328020.629860516.0
the report
5.36651
period
42623772.242623772.242623772.2
(VI)Others
444
IV.Balance at
996986293.3263649104697220910132405.36257090.5101004915523124819840528167206304205125912
the end of
001.442.249286.0082.7776.647.2423.88
the report
period
111WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Last period
In RMB
2023
Owners’ equity attributable to the parent Company
Other Provi
O
Share equity instrument sion
Item Less: Other t Total
capital Perpe Capital Reasonabl Surplus of Minority Inventory comprehensive Retained profit h Subtotal owners’
tual reserve e reserve reserve gener interests
Preferr Ot shares income e equity capit al
ed he r
al
risk stock r
secur
ities
I. Balance at the end of the last 1008603 3398368 541623002.6 2119800. 510100496 1332002132 17696679 738027678 18434706
-911310.13
year 293.00 567.63 3 95 .00 5.90 170.72 .66 849.38
Add: Changes of accounting
policy
Error correction of the last period
Other
II. Balance at the beginning of 1008603 3398368 541623002.6 2119800. 510100496 1332002132 17696679 738027678 18434706
-911310.13
this year 293.00 567.63 3 95 .00 5.90 170.72 .66 849.38
--
III. Increase/ Decrease in this 1521639 1734929072. 17032135 40302410. 17435159
6440500.90198426-8333490.3955068226.10
year (Decrease is listed with “-”) .02 22 01.06 60 11.66
00.67
1837291259.1892359475858270.19682177
(i) Total comprehensive income 55068226.10
6885.784156.19
----
(ii) Owners’ devoted and 4072852.9
6440500.10326086-8333490.3910136787297295019.
decreased capital 4
002.78.3945
--
1.Common shares invested by 5000000.0
71917549.6171917549.66917549.
shareholders 0
6161
2. Capital invested by holders of
other equity instruments
---
3. Amount reckoned into owners’
3000967230009672.-929399.1430939071.
equity with share-based payment.787892
--
4. Other 6440500. 73251190 -80251040.00 559350.00 2252.08 561602.08
00.00
----
(III) Profit distribution 102362187.4 102362187 40453107. 142815295
6.4658.04
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
---
3. Distribution for owners (or
-97757979.3097757979.40453107.138211086
shareholders)
3058.88
--
4. Other -4604208.16 4604208.1 4604208.1
66
112WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(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
15216391521639.01723517.1
(V) Reasonable reserve 201878.14.0226
307685930768590.3311493.534080084.
1. Withdrawal in the report period
0.8585035
292469529246951.3109615.332356567.
2. Usage in the report period
1.8383619
1306243613062436.13684952.
(VI)Others 622516.69.111180
IV. Balance at the end of the 1002162 3308170 533289512.2 3641439 510100496 1505495039 19399892 778330089 20178222
54156915.97
report period 793.00 140.96 4 .97 .00 8.12 671.78 .26 761.04
113WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
8.Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2024
Other equity
instrument
Reas
Perpe Other
Item Share capital O onabltual Less: Inventory compre Total owners’
Prefe t Capital reserve e Surplus reserve Retained profit Other
capit shares hensive equity
rred h reser
al income
stock e ve
secur
r
ities
I. Balance at the end of the last year 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
III. Increase/ Decrease in this year (Decrease is
-5176500.00-17582324.37-63567420.00318945144.76359753740.39
listed with “-”)
(i) Total comprehensive income 1504768422.22 1504768422.22
(ii) Owners’ devoted and decreased capital -5176500.00 -58390920.00 -63567420.00
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners’ equity with
share-based payment
4. Other -5176500.00 -58390920.00 -63567420.00
(III) Profit distribution -1185823277.46 -1185823277.46
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -1185823277.46 -1185823277.46
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
114WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(V) Reasonable reserve
6178
1. Withdrawal in the report period 007. 6178007.63
63
6178
2. Usage in the report period 007. 6178007.63
63
(VI)Others 40808595.63 40808595.63
IV. Balance at the end of the report period 996986293.00 3394923686.54 469722092.24 510100496.00 12572820128.71 17005108512.01
Last period
In RMB
2023
Other equity
instrument
Reas
Perpe Other
Item Share capital O onabltual Less: Inventory compre Total owners’
Prefe t Capital reserve e Surplus reserve Retained profit Other
capit shares hensive equity rred h reser
al income
stock e ve
secur
r
ities
I. Balance at the end of the last year 1008603293.00 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1008603293.00 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
III. Increase/ Decrease in this year (Decrease is
-6440500.00-102499850.32-8333490.391488555165.661387948305.73
listed with “-”)
(i) Total comprehensive income 1586313144.96 1586313144.96
(ii) Owners’ devoted and decreased capital -6440500.00 -104190261.92 -8333490.39 -102297271.53
1.Common shares invested by shareholders 71917549.61 -71917549.61
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners’ equity with
-30939071.92-30939071.92
share-based payment
4. Other -6440500.00 -73251190.00 -80251040.00 559350.00
(III) Profit distribution -97757979.30 -97757979.30
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -97757979.30 -97757979.30
3. Other
(IV) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
2. Surplus reserves conversed to capital (share
capital)
115WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
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
6474
1. Withdrawal in the report period 505. 6474505.00
00
6474
2. Usage in the report period 505. 6474505.00
00
(VI)Others 1690411.60 1690411.60
IV. Balance at the end of the report period 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
116WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
III. Basic information of the Company
1．Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee Weifu High-Technology Group Co.Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company of limited liability with funds raised 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 including state-owned share capital amounting to 92.4355 million yuan public corporate
share capital amounting to 8.00 million yuan and inner employee share capital amounting to 15.00 million yuan.Between year of 1994 and 1995 the Company was restructured and became a holding subsidiary of Wuxi Weifu Group Co. Ltd
(hereinafter referred to as “Weifu Group”).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995 the Company issued 68 million
special ordinary shares (B-share) with value of 1.00 yuan for each and the total value of those shares amounted to 68 million yuan.After the issuance the Company’s total share capital increased to 183.4355 million yuan.By the approval of CSRC in June 1998 the Company issued 120 million RMB ordinary shares (A-share) at Shenzhen Stock
Exchange through on-line pricing and issuing. After the issuance the total share capital of the Company amounted to 303.4355
million yuan.In the middle of 1999 deliberated and approved by the Board and Shareholders’ General Meeting the Company implemented the
plan of granting 3 bonus shares for each 10 shares. After that the total share capital of the Company amounted to 394.46615 million
yuan of which state-owned shares amounted to 120.16615 million yuan public corporate shares 10.4 million yuan foreign-funded
shares (B-share) 88.40 million yuan RMB ordinary shares (A-share) 156 million yuan and inner employee shares 19.5 million yuan.In the year 2000 by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuance of
A-share in June 1998 the Company allotted 3 shares for each 10 shares with a price of 10 yuan for each allotted share. Actually 41.9
million shares was allotted and the total share capital after the allotment increased to 436.36615 million yuan of which state-owned
corporate shares amounted to 121.56615 million yuan public corporate shares 10.4 million yuan foreign-funded shares (B-share)
88.4 million yuan and RMB ordinary shares (A-share) 216 million yuan.
In April 2005 the Board of Directors of the Company examined and approved 2004 Profit Pre-distribution Plan and examined and
approved by 2004 Shareholders’ General Meeting the Company distributed 3 shares for each 10 shares to the whole shareholders
totaling to 130909845 shares in 2005.According to the Share Merger Reform Scheme of the Company deliberated and approved by related shareholders’ meeting of Share
Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in Share Merger Reform of
Weifu High-Technology Co. Ltd. issued by the State-owned Assets Supervision & Administration Commission of Jiangsu Province
8 non-circulating shareholders including Weifu Group arranged pricing with granting 1.7 shares for each 10 shares to circulating A-
share shareholders (totally granted 47736000 shares) so as to realize the originally non-circulating shares can be traded on market
when certain conditions were satisfying the scheme was implemented on April 5 2006.On May 27 2009 Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares based on the
number of circulating A share as prior to Share Merger Reform according to the aforesaid Share Merger Reform with an aggregate
of 14039979 shares dispatched. Subsequent to implementation of dispatch of consideration shares Weifu Group then held
100021999 shares of the Company representing 17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ (2009) No.46) about Approval for Merger of Wuxi Weifu Group Co. Ltd. by Wuxi Industry
Development Group Co. Ltd. issued by the State-owned Assets Supervision and Administration Commission of Wuxi City
Government Wuxi Industry Development Group Co. Ltd. (hereinafter referred to as Wuxi Industry Group) acquired Weifu Group.After the merger Weifu Group was then revoked and its assets and credits & debts were transferred to be under the name of Wuxi
Industry Group. Accordingly Wuxi Industry Group has became the first largest shareholder of the Company since then.
117WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution and approved by [2012] No. 109
document of China Securities Regulatory Commission in February 2012 the Company issued RMB ordinary shares (A-share) of
112858000 shares to Wuxi Industry Groups and overseas strategic investors privately Robert Bosch Co. Ltd. (ROBERT
BOSCHGMBH) (hereinafter referred to as Robert Bosch Company) face value was 1.00 yuan per share added registered capital of
112858000 yuan and the registered capital after change was 680133995 yuan. Wuxi Industry Group is the first majority
shareholder of the Company and Robert Bosch 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 and also was approved
by the Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680133995 shares distributed 5-
share for every 10 shares held by whole shareholders 340066997 shares in total are distributed. Total share capital of the Company
amounted to 1020200992 yuan up to December 31 2013.Deliberated and approved by the company’s first extraordinary general meeting in 2015 the company has repurchased 11250422
shares of A shares from August 26 2015 to September 8 2015 and finished the cancellation procedures for above repurchase shares
in China Securities Depository and Clearing Corporation Limited Shenzhen Branch on September 16 2015; after the cancellation of
repurchase shares the company’s paid-up capital (share capital) becomes 1008950570 yuan after the change.Deliberated and approved by the 5th meeting of 10th session of the BOD for year of 2021 the 291000 restricted shares were buy-back
and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the above-
mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20 2021; the paid-in capital (equity) of
the Company was 1008659570.00 yuan after the change.After deliberation and approved by the 8th meeting of 10th session of the BOD for year of 2022 the 56277 restricted shares were
bought back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the
above-mentioned buy-back shares were completed at the Shenzhen Branch of CSDC on July 8 2022; the paid-in capital (equity) of
the Company was 1008603293.00 yuan after the change.After deliberation and approval by the the 14th 16th and 20th meetings of the 10th session of the BOD of the Company for the year of
2023 the 430000 5593500 and 417000 restricted shares were bought back and canceled by the Company initially granted under
under the 2020 Restricted Share Incentive Plan. The cancellation of the above-mentioned buy-back shares were completed at the
Shenzhen Branch of CSDC on February 16 2023 June 16 2023 and December 18 2023; the paid-in capital (equity) of the
Company was 1002162793 yuan after changed.On April 15 2024 the Company convened the 23rd meeting of the 10th session of the BOD of the company and the 19th meeting of
the 10th session of the Board of Supervisors deliberated and approved the Proposal on Repurchasing and Canceling Some Restricted
Shares under the 2020 Restricted Stock Incentive Plan and the Board of Supervisors of the Company issued verification opinion.The shares involved in this repurchase and cancellation were a total of 5176500 restricted shares un-locked and held by 535 persons
accounting for 0.52% of the total share capital of the Company. As of June 7 2024 the Company had completed the repurchase and
cancellation procedures for the above-mentioned shares at the Shenzhen Branch of CSDC. The total share capital of the Company
was changed from 1002162793 shares to 996986293 shares.
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 Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting the Board of Directors (BOD) and the Board of Supervisors (BOS).The Company sets up Administration Department Technology Centre organization & personnel department Office of the Board
compliance department IT department Strategy & new business Department market development department Party-masses
Department Finance Department Purchase Manufacturing Safety Department Discipline Inspection Department MS (Mechanical
System) division AC(Automotive Components) division and DS (Diesel System ) division etc. and subsidiaries such as Wuxi Weifu
LIDA Catalytic Converter Co. Ltd Nanjing WFJN Co. Ltd IRD Fuel Cells A/S Borit NV VHIO S.p.Aetc.
118WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
3．Business nature and major operation activities of the Company
Operation scope of parent company: Technical development and consulting services in the machinery industry; manufacturing of
internal combustion engine fuel system products fuel system testing instruments and equipment automotive electronic components
automotive electrical components non-standard equipment non-standard cutting tools and exhaust gas post-treatment systems; sales
of general machinery hardware electrical appliances chemical products and raw materials (excluding hazardous chemicals)
automotive parts and motor vehicles (excluding passenger vehicles with less than nine seats); maintenance of internal combustion
engines; leasing of self-owned properties; import and export of various goods and technologies on a self-operated and agency basis
(excluding goods and technologies restricted or prohibited from import and export by the state). Engineering and technical research
and experimental development; research and development of energy recovery systems; manufacturing of automotive parts and
accessories; manufacturing of general equipment (excluding special equipment manufacturing) (projects that require approval in
accordance with the law can only be carried out after being approved by relevant departments). Licensed projects: Manufacturing of
special equipment; installation renovation and repair of special equipment (projects that require approval in accordance with the law
can only be carried out after being approved by relevant departments and the specific business projects shall be subject to the
approval results); General projects: Investment activities with self-owned funds; software development; software sales; software
outsourcing services; mold manufacturing; mold sales; manufacturing of machine tool functional components and accessories; sales
of machine tool functional components and accessories; manufacturing of drawing computing and measuring instruments; sales of
drawing computing and measuring instruments; sales of industrial robots; installation and maintenance of industrial robots;
manufacturing of intelligent basic manufacturing equipment; sales of intelligent basic manufacturing equipment; manufacturing of
industrial automatic control system devices; sales of industrial automatic control system devices; manufacturing of material handling
equipment; sales of material handling equipment; manufacturing of gas and liquid separation and purification equipment; sales of gas
and liquid separation and purification equipment; technical services technical development technical consultation technical
exchanges technology transfer technology promotion; research and development of new energy technologies; import and export of
goods; import and export of technologies; manufacturing of ordinary valves and cocks (excluding special equipment manufacturing);
research and development of valves and cocks; sales of valves and cocks (except for projects that require approval in accordance with
the law independent business activities shall be carried out in accordance with the law with a business license).The main subsidiaries are respectively engaged in the production and sales of internal combustion engine parts automotive parts
mufflers purifiers fuel cell parts etc.
4．Authorized reporting parties and reporting dates for the financial report
Financial report of the Company was approved by the Board of Directors for reporting dated April 16 2025.
5．In the notes to these financial statements unless otherwise specified the following company names are abbreviated as
follows:
Name of subsidiary Short name of subsidiary
Nanjing WFJN Co. Ltd. WFJN
Wuxi Weifu Lida Catalytic Converter Co. Ltd. WFLD
Wuxi Weifu Nanshan Fuel Injection Equipment Co. Ltd. WFMA
Wuxi Weifu Chang’an Co. Ltd. WFCA
Wuxi Weifu International Trade Co. Ltd. WFTR
Wuxi Weifu Schmitter Powertrain Components Co. Ltd. WFSC
Ningbo WFTT Turbocharging Technology Co. Ltd. WFTT
Wuxi WFAM Precision Machinery Co. Ltd. WFAM
WFLD
Wuxi Weifu LIDA Catalytic Converter (Wuhan) Co. Ltd.(Wuhan)
Weifu Lida (Chongqing) Automotive Components Co. Ltd. WFLD
119WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Name of subsidiary Short name of subsidiary
(Chongqing)
WFLD
Nanchang Weifu LIDA Automotive Components Co. Ltd.(Nanchang)
Wuxi Weifu Autosmart Seating System Co. Ltd. WFAS
Weifu Lianhua Automotive Components (Fuzhou) Co. Ltd. WFLH
Wuxi Weifu E-drive Technologies Co. Ltd. WFDT
Wuxi Weifu Qinglong Power Technology Co. Ltd. WFQL
VHIT Automotive Systems (Wuxi) Co. Ltd VHCN
WEIFU Smart Sensing (Wuxi) Technology Co. Ltd. WFSS
Weifu Holding ApS SPV
IRD Fuel Cells A/S IRD
IRD FUEL CELLS LLC IRD America
Borit NV Borit
Borit Inc. Borit America
VHIT S.p.A. Società Unipersonale VHIO
IV. Basis of Preparation of Financial Statements
1. Preparation base
The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by
the Ministry of Finance the specific accounting rules the Application Instruments of Accounting Standards and interpretation on
Accounting standards and other relevant regulations (together as “Accounting Standards for Business Enterprise”) as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General Provision of
Financial Report (Revised in 2023) issued by CSRC in respect of the actual transactions and proceedings on a basis of ongoing
operation.In line with relevant regulations of Accounting Standards of Business Enterprise accounting of the Company is on Accrued
basis. Except for certain financial instruments the financial statement measured on historical cost. Assets have impairment been
found; corresponding depreciation reserves shall Accrued according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information and there are no obvious factors that impact sustainable
operation ability of the Company within 12 months since end of the reporting period.V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
Based on the actual production and operation characteristics the company and each of its subsidiaries have formulated a number of
specific accounting policies and accounting estimates for various transactions and events in accordance with the provisions of
relevant accounting standards for enterprises. The detailed descriptions are as follows.
1. Statement on observation of Accounting Standard for Business Enterprises
The financial statements prepared by the company comply with the requirements of accounting standards for enterprises
120WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
truthfully and completely reflecting the consolidated and parent company's financial position as of December 31 2024 as well as the
consolidated and parent company's operating results and the consolidated and parent company's cash flows and other relevant
information for the year 2024.
2. Accounting Periods
The accounting periods of the Company are divided into annual periods and interim periods. An interim accounting period
refers to a reporting period that is shorter than a full accounting year. The Company's accounting year adopts the calendar year that
is from January 1st to December 31st of each year.
3. Operating Cycle
The Company takes 12 months as an operating cycle and uses it as the criterion for classifying the liquidity of assets and
liabilities.
4. Functional Currency
The currency used by the Company in preparing these financial statements is the Renminbi. The overseas subsidiaries of the
Company determine their functional currencies based on the currencies in the main economic environment where they operate such
as the Euro Danish Krone US Dollar etc.
5. Method for Determining Importance Criteria and Selection Criteria
□Applicable □ Not applicable
Item Importance criteria
Important prepayments with an aging Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount
of over 1 year and with an amount greater than 15 million yuan
Important construction in progress The budget for a single project is greater than 80 million yuan
Important accounts payable with an Account payable with aging over 1 year accounting for more than 10% of the total accounts
aging of over 1 year payable and with an amount greater than 80 million yuan
Other important payables with aging Other payables with aging over 1 year accounting for more than 10% of the total other
of over 1 year payables and an amount greater than 15 million yuan
Important contract liabilities with Contract liabilities with aging over 1 year account for more than 10% of the total contract
aging of over 1 year liabilities and the amount greater than 15 million yuan
The net assets of subsidiaries account for more than 5% of the net assets in the consolidated
Important non-wholly-owned
financial statements or the net profit of subsidiaries accounts for more than 10% of the net
subsidiaries
profit in the consolidated financial statements
The book value of long-term equity investments in an invested entity accounts for more than
5% of the net assets in the consolidated financial statements and the amount exceeds 1 billion
Important joint ventures or associates yuan or the investment gains/losses under the equity method account for more than 10% of the
net profits in the consolidated financial statements of the company and the amount exceeds 100
million yuan
6. Accounting Treatment Methods for Business Combinations under the Same Control and under Non-
Same Control
Business combination refers to a transaction or event that combines two or more separate enterprises to form a single reporting
entity. Business combinations are classified into business combinations under the same control and business combinations under non-
same control.
121WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(1) Business Combinations under the Same Control
A business combination under the same control occurs when the enterprises involved in the combination are ultimately
controlled by the same party or the same group of parties both before and after the combination and such control is not temporary. In
a business combination under the same control the party that obtains control over the other enterprise involved in the combination on
the combination date is the combining party and the other enterprise involved in the combination are the combined parties. The
combination date refers to the date on which the combining party actually obtains control over the combined party.The assets and liabilities obtained by the company in a business combination are measured at their carrying amounts in the
consolidated financial statements of the ultimate controlling party on the combination date including the goodwill formed when the
ultimate controlling party acquired the combined party. If there is a difference between the carrying amount of the net assets obtained
and the carrying amount of the combination consideration paid (or the total par value of the issued shares) it shall be adjusted against
the share premium in capital reserve. If the share premium in capital reserve is insufficient to cover the difference the retained
earnings shall be adjusted.All direct expenses incurred by the combining party for the business combination shall be recognized as current profit or loss
when incurred.
(2) Business combinations under not same control
A business combination under non-same control occurs when the enterprises involved in the combination are not ultimately
controlled by the same party or the same group of parties both before and after the combination. In a business combination under
non-same control the party that obtains control over the other enterprises involved in the combination on the acquisition date is the
acquirer and the other enterprise involved in the combination are the acquirees. The acquisition date refers to the date on which the
acquirer actually obtains control over the acquiree.For a business combination under non-same control the combination cost includes the fair values of the assets transferred the
liabilities incurred or assumed and the equity securities issued by the acquirer on the acquisition date in order to obtain control over
the acquiree. The intermediary expenses such as audit legal services and valuation consultation as well as other administrative
expenses incurred for the business combination shall be recognized as current profit or loss when incurred. The transaction costs
related to the equity securities or debt securities issued by the acquirer as consideration for the combination shall be included in the
initial recognition amount of the equity securities or debt securities. The contingent consideration involved shall be included in the
combination cost at its fair value on the acquisition date. If new or further evidence of the circumstances existing on the acquisition
date emerges within 12 months after the acquisition date which requires adjustment of the contingent consideration the goodwill of
the combination shall be adjusted accordingly. The combination cost incurred by the acquirer and the identifiable net assets obtained
in the combination shall be measured at their fair values on the acquisition date. If the combination cost is greater than the acquirer's
share of the fair value of the identifiable net assets of the acquiree on the acquisition date the difference shall be recognized as
goodwill. If the combination cost is less than the acquirer's share of the fair value of the identifiable net assets of the acquiree the fair
values of the identifiable assets liabilities and contingent liabilities of the acquiree obtained as well as the measurement of the
combination cost shall first be rechecked. If after the recheck the combination cost is still less than the acquirer's share of the fair
value of the identifiable net assets of the acquiree the difference shall be recognized as current profit or loss.If the acquirer obtains the deductible temporary differences of the acquiree but does not recognize them as deferred income tax
assets on the acquisition date because the recognition conditions for deferred income tax assets are not met and within 12 months
after the acquisition date new or further information indicates that the relevant circumstances on the acquisition date already existed
and it is expected that the economic benefits brought by the deductible temporary differences of the acquiree on the acquisit ion date
can be realized the relevant deferred income tax assets shall be recognized and at the same time the goodwill shall be reduced. If
the goodwill is insufficient to cover the reduction the remaining difference shall be recognized as current profit or loss. Except for
the above circumstances the recognition of deferred income tax assets related to the business combination shall be included in
current profit or loss.For a business combination under non-same control achieved in multiple transactions in stages if it is part of a “package oftransactions” the accounting treatment shall be carried out with reference to the descriptions in the preceding paragraphs of this
122WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
section and Note V.18 "Long-Term Equity Investments"of these financial statements. If it is not part of a “package of transactions”
relevant accounting treatments shall be carried out separately for the individual financial statements and the consolidated financial
statements:
In the individual financial statements the initial investment cost of the investment shall be the sum of the carrying amount of the
equity investment in the acquiree held before the acquisition date and the additional investment cost on the acquisition date. If the
equity of the acquiree held before the acquisition date involves other comprehensive income when disposing of the investment the
relevant other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of
the relevant assets or liabilities (i.e. except for the corresponding share of the changes in the net liabilities or net assets of the defined
benefit plan remeasured by the acquiree accounted for under the equity method the rest shall be transferred to the current investment
income).In the consolidated financial statements for the equity of the acquiree held before the acquisition date it shall be re-measured at
its fair value on the acquisition date and the difference between the fair value and its carrying amount shall be included in the current
investment income. If the equity of the acquiree held before the acquisition date involves other comprehensive income the relevant
other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of the
relevant assets or liabilities (i.e. except for the corresponding share of the changes in the net liabilities or net assets of the defined
benefit plan remeasured by the acquiree accounted for under the equity method the rest shall be transferred to the investment income
of the current period to which the acquisition date belongs).
7. Criteria for judging control and preparation method for consolidated financial statement
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined based on control. Control means that the
company has the power over the investee enjoys variable returns by participating in the relevant activities of the investee and has
the ability to use its power over the investee to influence the amount of those returns. Generally it includes the invested entities in
which the parent company holds more than half of the voting rights and the invested entities in which the company holds less than
half of the voting rights but through agreements with other investors of the invested entity holds more than half of the voting rights;
according to the articles of association or agreements it has the right to determine the financial and operational decisions of the
invested entity; it has the right to appoint and remove the majority of the members of the board of directors of the invested entity; and
it holds the majority of the voting rights on the board of directors of the invested entity.
(2) Methods for Preparing Consolidated Financial Statements
The company begins to include a subsidiary in the consolidation scope from the date when it obtains the actual control over the
subsidiary's net assets and production and operation decisions and stops including it in the consolidation scope from the date when it
loses the actual control. For a disposed subsidiary the operating results and cash flows before the disposal date have been
appropriately included in the consolidated income statement and the consolidated cash flow statement; for a subsidiary disposed of in
the current period the beginning figures of the consolidated balance sheet will not be adjusted. For a subsidiary added through a
business combination under non-same control its operating results and cash flows after the acquisition date have been appropriately
included in the consolidated income statement and the consolidated cash flow statement and the beginning figures and comparative
figures of the consolidated financial statements will not be adjusted. For a subsidiary added through a business combination under the
same control its operating results and cash flows from the beginning of the current consolidation period to the combination date have
been appropriately included in the consolidated income statement and the consolidated cash flow statement and the comparative
figures of the consolidated financial statements will be adjusted at the same time.
123WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
When preparing the consolidated financial statements if the accounting policies or accounting periods adopted by a subsidiary
are inconsistent with those of the company necessary adjustments will be made to the subsidiary's financial statements in accordance
with the company's accounting policies and accounting periods. For a subsidiary obtained through a business combination under non-
same control its financial statements will be adjusted based on the fair value of the identifiable net assets at the acquisition date.All significant intercompany balances transactions and unrealized profits within the company will be eliminated when
preparing the consolidated financial statements.The portion of the subsidiary's shareholders' equity and current net profit and loss that does not belong to the company will be
separately presented as the minority shareholders' equity and the minority shareholders' profit and loss under the shareholders' equity
and net profit items in the consolidated financial statements. The share of the subsidiary's current net profit and loss attributable to
the minority shareholders will be presented as the item "Minority Shareholders' Profit and Loss" under the net profit item in the
consolidated income statement. If the losses of the subsidiary borne by the minority shareholders exceed the share of the minority
shareholders in the subsidiary's beginning shareholders' equity the minority shareholders' equity will still be reduced. When the
control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary the fair value of the remaining equity is
re-measured on the date when the control ceased. The difference between the sum of the consideration received from disposal of
equity and the fair value of the remaining equity less the net assets attributable to the company since the acquisition date is
recognized as the investment income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the purchaser directly when
the control is lost namely be transferred to current investment income other than the relevant part of the movement arising from re-
measuring net liabilities or net assets under defined benefit scheme by the original subsidiary. Subsequent measurement of the
remaining equitys shall be in accordance with relevant accounting standards such as Accounting Standards for business Enterprises 2
– Long-term Equity Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement. Refer to Note V.18 Long-term Equity investment or Note V.11 Financial Instrument
The company shall determine whether loss of control arising from disposal in a series of transactions should be regarded as
package deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following
situations the transactions shall normally be accounted for as package deal: * The transactions are entered into after considering the
mutual consequences of each individual transaction; * The transactions need to be considered as a whole in order to achieve a deal
in commercial sense;* The occurrence of an individual transaction depends on the occurrence of one or more individual transactions
in the series; * The result of an individual transaction is not economical but it would be economical after taking into account of
other transactions in the series. When the transactions are not regarded as package deal the individual transactions shall be accounted
as “disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of a portion of an interestin a subsidiary which led to loss of control”. When the transactions are regarded as package deal the transactions shall be accounted
as a single disposal transaction; however the difference between the consideration received from disposal and the share of net assets
disposed in each individual transactions before loss of control shall be recognized as other comprehensive income and reclassified as
profit or loss arising from the loss of control when control is lost.
8. Classification of Joint Arrangements and Accounting Treatment Methods for Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two or more participating parties. Based on the rights enjoyed
and obligations assumed by the company in the joint arrangement the joint arrangement is classified into joint operations and joint
ventures. A joint operation is a joint arrangement in which the company enjoys the relevant assets of the arrangement and assumes
the relevant liabilities of the arrangement. A joint venture is a joint arrangement in which the company has rights only to the net
assets of the arrangement.
124WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The company accounts for its investment in a joint venture using the equity method and deals with it in accordance with the
accounting policies described in Note V.18 (2) * "Long-Term Equity Investments Accounted for by the Equity Method" of these
notes.As a party to a joint operation the company recognizes the assets held solely by the company the liabilities borne solely by the
company and also recognizes according to its share the jointly held assets and jointly borne liabilities; recognizes the revenue
generated from the sale of the company's share of the output of the joint operation; recognizes according to its share the revenue
generated by the joint operation from the sale of the output; recognizes the expenses incurred solely by the company and also
recognizes according to its share the expenses incurred by the joint operation.When the company as a party to a joint operation contributes or sells assets (such assets do not constitute a business the same
below) to the joint operation or purchases assets from the joint operation before such assets are sold to a third party the company
only recognizes the portion of the profit or loss arising from the transaction that is attributable to the other participating parties of the
joint operation. If the assets incur asset impairment losses in accordance with the provisions of Accounting Standards for Enterprises
No. 8 - Asset Impairment and other relevant regulations in the case of the company contributing or selling assets to the joint
operation the company fully recognizes the loss; in the case of the company purchasing assets from the joint operation the company
recognizes the loss according to its assumed share.
9. Recognition standards for cash and cash equivalent
Cash refers to stock cash savings available for paid at any time; cash and cash equivalent refers to the cash held by the
Company with short terms (expired within 3 months since purchased) and liquid and easy to transfer as known amount and
investment with minor variation in risks.
10. Foreign Currency Business and Translation of Foreign Currency Financial Statements
(1) Translation method for foreign currency transactions
When a foreign currency transaction occurs in the company it is initially recognized and translated into the amount in the
functional currency at the spot exchange rate on the transaction date. However for foreign currency exchange transactions or
transactions involving foreign currency exchange conducted by the company they are translated into the amount in the functional
currency at the actual exchange rate applied.
(2) Translation methods for foreign currency monetary items and foreign currency non-monetary items
On the balance sheet date foreign currency monetary items are translated at the spot exchange rate on the balance sheet date.The resulting exchange differences will be booked into current profit or loss except for the followings: * the exchange differences
arising from foreign currency special loans related to the acquisition and construction of assets qualified for capitalization which are
accounted for in accordance with the principles of capitalizing borrowing costs; * the exchange differences of hedging instruments
for effective hedging of net investments in overseas operations (such differences are booked into other comprehensive income and
will only be recognized as current profit or loss when the net investment is disposed of); * for available-for-sale foreign currency
monetary items the exchange differences arising from changes in other carrying amounts other than the amortized cost are included
in other comprehensive income .When preparing consolidated financial statements involving overseas operations if there are foreign currency monetary items
that substantially constitute a net investment in overseas operations the exchange differences arising from exchange rate fluctuations
are included in other comprehensive income; when the overseas operation is disposed of they are transferred to the profit or loss of
the current period of disposal.For foreign currency non-monetary items measured at historical cost they are still measured at the amount in the functional
currency translated at the spot exchange rate on the date of the transaction. For foreign currency non-monetary items measured at fair
125WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
value they are translated at the spot exchange rate on the date when the fair value is determined. The difference between the
translated amount in the functional currency and the original amount in the functional currency is treated as changes in fair value
(including exchange rate changes) and is included in current profit or loss or recognized as other comprehensive income.
(3) Translation method for foreign currency financial statements
When preparing consolidated financial statements involving overseas operations if there are foreign currency monetary items
that substantially constitute a net investment in overseas operations the exchange differences arising from exchange rate fluctuations
are recognized as other comprehensive income as "translation differences of foreign currency financial statements"; when the
overseas operation is disposed of they are booked into the profit or loss of the current period of disposal.The foreign currency financial statements of overseas operations are translated into RMB financial statements according to the
following methods: The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet
date; for items in the shareholders' equity category except for the "undistributed profits" item other items are translated at the spot
exchange rate at the time of occurrence. The revenue and expense items in the income statement are translated at the spot exchange
rate on the date of the transaction. The undistributed profits at the end of the previous year are the undistributed profits at the end of
the previous year after translation in the previous year; the undistributed profits at the end of the period are calculated and presented
according to each item of the translated profit distribution; the difference between the total of the translated asset items and the total
of the liability items and shareholders' equity items is recognized as other comprehensive income as the translation differences of
foreign currency financial statements. When disposing of an overseas operation and losing control all or in proportion to the disposal
of the overseas operation the translation differences of foreign currency financial statements related to the overseas operation and
shown under the shareholders' equity items in the balance sheet are transferred to the profit or loss of the current period of disposal.The foreign currency cash flows and the cash flows of overseas subsidiaries are calculated at the spot exchange rate on the date
when the cash flows occur. The impact of exchange rate changes on cash is presented separately as a reconciliation item in the cash
flow statement.Balance at the end of the previous year and the actual amount of the previous year are presented according to the amounts after
translation of the previous year's financial statements.When disposing of all the owners' equity of the company's overseas operation or losing control of the overseas operation due to
the disposal of part of the equity investment or other reasons all the translation differences of foreign currency financial statements
related to the overseas operation and attributable to the owners' equity of the parent company shown under the shareholders' equity
items in the balance sheet are transferred to the profit or loss of the current period of disposal.When the proportion of equitys in an overseas operation held is reduced due to the disposal of part of the equity investment or
other reasons but control over the overseas operation is not lost the translation differences of foreign currency financial statements
related to the disposed part of the overseas operation are attributable to the minority shareholders' equity and are not transferred to the
current profit or loss. When disposing of part of the equity of an overseas operation that is an associated enterprise or a joint venture
the translation differences of foreign currency financial statements related to the overseas operation are transferred to the profit or
loss of the current period of disposal in proportion to the disposal of the overseas operation.
11. Financial Instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument contract.
(1) Classification recognition and measurement of financial assets
Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial
assets the Company classifies financial assets into financial assets measured at amortized cost financial assets measured at fair value
through other comprehensive income and financial assets measured at fair value through profit or loss.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through profit or
loss the relevant transaction costs are directly recognized in current gains/losses; for other categories of financial assets the relevant
126WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
transaction costs are included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of
products or the provision of services that do not contain or do not consider a significant financing component the Company uses the
amount of consideration it expects to be entitled to receive as the initial recognition amount.* Financial assets measured at amortized cost
The Company's business model for managing financial assets measured at amortized cost is to collect contractual cash flows
and the contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements that is the cash
flows generated on specific dates are only payments of principal and interest based on the outstanding principal amount. For such
financial assets the Company uses the effective interest rate method and measures them subsequently at amortized cost. The gains or
losses arising from amortization or impairment are recognized in current gains/losses.* Financial assets measured at fair value through other comprehensive income
The Company's business model for managing such financial assets is both to collect contractual cash flows and to sell and the
contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements. The Company measures
such financial assets at fair value and recognizes the changes in fair value in other comprehensive income but impairment losses or
gains exchange differences and interest income calculated using the effective interest rate method are recognized in current
gains/losses.In addition the Company designates some non-trading equity instrument investments as financial assets measured at fair value
through other comprehensive income. The Company recognizes the relevant dividend income from such financial assets in current
gains/losses and recognizes the changes in fair value in other comprehensive income. When such financial assets are derecognized
the cumulative gains or losses previously recognized in other comprehensive income will be transferred from other comprehensive
income to retained earnings and will not be recognized in current gains/losses.* Financial assets measured at fair value through profit or loss
The Company classifies financial assets other than those measured at amortized cost and those measured at fair value through
other comprehensive income as financial assets measured at fair value through profit or loss. In addition upon initial recognition in
order to eliminate or significantly reduce accounting mismatches the Company designates some financial assets as financial assets
measured at fair value through profit or loss. For such financial assets the Company measures them subsequently at fair value and
the changes in fair value are recognized in current gains/losses.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities are classified upon initial recognition as financial liabilities measured at fair value through profit or loss and
other financial liabilities. For financial liabilities measured at fair value through profit or loss the relevant transaction costs are
directly recognized in current gains/losses and the relevant transaction costs of other financial liabilities are included in their initial
recognition amount.* Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities (including derivative
instruments that are financial liabilities) and financial liabilities designated upon initial recognition as measured at fair value through
profit or loss.Trading financial liabilities (including derivative instruments that are financial liabilities) are measured subsequently at fair
value. Except for those related to hedge accounting the changes in fair value are recognized in current gains/losses.For financial liabilities designated as measured at fair value through profit or loss the changes in fair value caused by the
changes in the Company's own credit risk are recognized in other comprehensive income and when the liability is derecognized the
cumulative changes in fair value caused by the changes in its own credit risk that have been recognized in other comprehensive
income are transferred to retained earnings. The remaining changes in fair value are recognized in current gains/losses. If accounting
for the impact of the changes in the own credit risk of such financial liabilities in the above manner would result in or exacerbate
127WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
accounting mismatches in profit or loss the Company will recognize all the gains or losses (including the impact amount of the
changes in the enterprise's own credit risk) of such financial liabilities in current gains/losses.* Other financial liabilities
Other financial liabilities except for financial liabilities arising from financial asset transfers that do not meet the derecognition
criteria or from continued involvement in the transferred financial assets and financial guarantee contracts are classified as financial
liabilities measured at amortized cost and are measured subsequently at amortized cost. The gains or losses arising from
derecognition or amortization are recognized in current gains/losses.
(3) Recognition criteria and measurement methods for financial asset transfers
A financial asset is derecognized if one of the following conditions is met: * The contractual right to receive the cash flows of
the financial asset expires; * The financial asset has been transferred and substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferee; * The financial asset has been transferred and although the enterprise has
neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset it has relinquished control
of the financial asset.If the enterprise has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset and
has not relinquished control of the financial asset it shall recognize the relevant financial assets to the extent of its continuing
involvement in the transferred financial asset and recognize the relevant liabilities accordingly. The extent of continuing involvement
in the transferred financial asset refers to the level of risk to which the enterprise is exposed due to changes in the value of the
financial asset.When the transfer of a financial asset in its entirety meets the derecognition criteria the difference between the carrying amount
of the transferred financial asset the consideration received as a result of the transfer and the cumulative amount of changes in fair
value originally recognized in other comprehensive income is recognized in current gains/losses.When a partial transfer of a financial asset meets the derecognition criteria the carrying amount of the transferred financial asset
is allocated between the derecognized and non-derecognized parts based on their relative fair values and the difference between the
consideration received as a result of the transfer the cumulative amount of changes in fair value originally recognized in other
comprehensive income that should be allocated to the derecognized part and the allocated carrying amount is recognized in current
gains/losses.When the Company sells a financial asset with recourse or endorses and transfers a held financial asset it needs to determine
whether substantially all the risks and rewards of ownership of the financial asset have been transferred. If substantially all the risks
and rewards of ownership of the financial asset have been transferred to the transferee the financial asset is derecognized; if
substantially all the risks and rewards of ownership of the financial asset have been retained the financial asset is not derecognized;
if neither substantially all the risks and rewards of ownership of the financial asset have been transferred nor retained the enterprise
will continue to determine whether it retains control over the asset and conduct accounting treatment in accordance with the
principles described in the preceding paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part thereof) has been discharged the Company derecognizes the
financial liability (or the part of the financial liability). When the Company (the borrower) enters into an agreement with the lender to
replace the original financial liability by assuming a new financial liability and the contractual terms of the new financial liability are
substantially different from those of the original financial liability the original financial liability is derecognized and a new financial
liability is recognized at the same time. When the Company makes a substantial modification to the contractual terms of the original
financial liability (or a part thereof) the original financial liability is derecognized and a new financial liability is recognized in
accordance with the modified terms at the same time.When a financial liability (or a part thereof) is derecognized the Company recognizes the difference between its carrying
amount and the consideration paid (including the transferred non-cash assets or the assumed liabilities) in current gains/losses.
128WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(5) Balance-out between the financial assets and liabilities
As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets the
balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition the financial assets and
liabilities are listed in the balance sheet without being balanced out.
(6) Fair value determination method for financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderly
transaction that occurs on the measurement date. If there is an active market for financial instruments the company determines their
fair value using quotes from the active market. The quotation in an active market refers to the price that is easily obtained regularly
from exchanges brokers industry associations pricing service agencies etc. and represents the actual market transaction price that
occurs in fair trade. If there is no active market for financial instruments the company uses valuation techniques to determine their
fair value. Valuation techniques include referencing prices used in recent market transactions by parties familiar with the situation
and willing to trade referencing the current fair value of other financial instruments that are substantially the same discounted cash
flow method and option pricing models.At the time of valuation the company adopts valuation techniques that are applicable in the
current situation and supported by sufficient available data and other information selects input values that are consistent with the
asset or liability characteristics considered by market participants in transactions related to the asset or liability and prioritizes the use
of relevant observable input values as much as possible. In situations where observable input values cannot be obtained or are not
feasible to obtain use non input values.Impairment of financial assets
The financial assets that the company needs to recognize impairment losses are financial assets measured at amortized cost and debt
instrument investments measured at fair value with changes in fair value recognized in other comprehensive income mainly
including notes receivable accounts receivable contract assets other receivables debt investments other debt investments long-
term receivables etc. In addition for some financial guarantee contracts impairment provisions and credit impairment losses are also
recognized in accordance with the accounting policies described in this section.
(1) Recognition method for impairment provision
Based on expected credit losses the company has made impairment provisions and recognized credit impairment losses for the
above-mentioned items with the applicable expected credit loss measurement methods (general or simplified methods).Credit loss refers to the difference between all contract cash flows receivable discounted at the original effective interest rate and all
expected cash flows received by the company that is to say the present value of all cash shortfall. Among them for financial assets
that have been purchased or generated and have experienced credit impairment the Company will discount them at the actual interest
rate adjusted for credit of the financial asset.The general method for measuring expected credit losses refers to the assessment of whether the credit risk of financial assets has
significantly increased since initial recognition by the Company on each balance sheet date. If the credit risk has significantly
increased since initial recognition the Company measures the impairment provision based on an amount equivalent to the expected
credit loss over the entire period of existence; If the credit risk does not significantly increase after initial recognition the company
measures the impairment provision based on an amount equivalent to the expected credit loss within the next 12 months. When
evaluating expected credit losses the company considers all reasonable and evidence-based information including forward-looking
information.For financial instruments with low credit risk on the balance sheet date the Company assumes that their credit risk has not
significantly increased since initial recognition and chooses to measure the impairment provision based on the expected credit loss in
the next 12 months/does not choose a simplified treatment method and measures the impairment provision based on whether their
credit risk has significantly increased since initial recognition using the expected credit loss amount in the next 12 months or the
entire duration as the basis.
(2) Criteria for determining whether credit risk has significantly increased since initial recognition
129WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
If the default probability of a financial asset during the expected duration determined on the balance sheet date is significantly higher
than the default probability during the expected duration determined at initial recognition it indicates a significant increase in credit
risk of the financial asset. Except in special circumstances the company uses the changes in default risk that will occur within the
next 12 months as a reasonable estimate of the changes in default risk that will occur throughout the entire existence period to
determine whether credit risk has significantly increased since initial recognition.Usually if the overdue period exceeds 30 days the company considers that the credit risk of the financial instrument has significantly
increased unless there is conclusive evidence to prove that the credit risk of the financial instrument has not significantly increased
since initial recognition.When evaluating whether credit risk has significantly increased the company will consider the following factors:
1) Whether there has been a significant change in the actual or expected operating results of the debtor;
2) Whether there have been significant adverse changes in the regulatory economic or technological environment in which
the debtor is located;
3) Whether there have been significant changes in the value of the collateral used as collateral for debt or the quality of the
guarantee or credit enhancement provided by a third party which is expected to reduce the debtor's economic motivation
to repay within the contractually stipulated period or affect the probability of default;
4) Whether there have been significant changes in the debtor's expected performance and repayment behavior;
5) Has there been any change in the company's credit management methods for financial instruments.
On the balance sheet date if the Company determines that a financial instrument has only low credit risk the Company assumes that
the credit risk of the financial instrument has not significantly increased since initial recognition. If the default risk of a financial
instrument is low the borrower has a strong ability to fulfill its contractual cash flow obligations in the short term and even if there
are adverse changes in the economic situation and operating environment over a longer period of time it may not necessarily reduce
the borrower's ability to fulfill its contractual cash obligations then the financial instrument is considered to have low credit risk.
(3) Portfolio-based approach for evaluating expected credit risk
The company evaluates the credit risk of financial assets with significantly different credit risks such as accounts receivable from
related parties accounts receivable that are in dispute with the other party or involve litigation or arbitration there are clear
indications that the debtor may not be able to fulfill their repayment obligations such as accounts receivable.In addition to financial assets assessed for credit risk individually the company divides financial assets into different groups based on
common risk characteristics. The common credit risk characteristics adopted by the company include financial instrument type credit
risk rating aging portfolio overdue aging portfolio contract settlement period debtor's industry etc. Credit risk is evaluated based
on portfolio.
(4) Accounting treatment methods for impairment of financial assets
At the end of the period the Company calculates the estimated credit losses of various financial assets. If the estimated credit loss is
greater than the carrying amount of its current impairment provision the difference is recognized as an impairment loss; If it is less
than the carrying amount of the current impairment provision the difference is recognized as an impairment gain.Methods for determining credit losses of financial assets
Except for separately evaluating credit risk accounts receivable the company divides accounts receivable into different portfolios
based on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determining
different portfolios and methods for measuring expected credit losses are as follows:
Item Basis for determining the portfolio Specific methods for measuring expected credit losses
For accounts receivable within six months the company
Accounts receivable does not provide for expected credit losses; In addition the
financing - bank acceptance Bank acceptance bill company believes that the credit risk of the bank acceptance
bill portfolio bills it holds is relatively low and will not cause significant
losses due to bank defaults. Therefore the expected credit
130WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Item Basis for determining the portfolio Specific methods for measuring expected credit losses
losses shall not be measured for the corresponding
receivables financing bank acceptance portfolio.For accounts receivable within six months the company
does not provide for expected credit losses; In addition the
credit risk of the commercial acceptance bills held by the
Accounts receivable - company is relatively low as these bills are mainly issued
commercial acceptance bill Commercial acceptance bill by reputable automobile manufacturers. Based on historical
portfolio experience there have been no significant defaults.Therefore the company doesn’t measure expected credit
losses for the portfolio of accounts receivable and
commercial acceptance bills
Accounts receivable other than
accounts receivable from internal
Accounts Receivable -
related parties and those for which Measure expected credit losses based on aging
Customer Portfolio
credit impairment losses have been
individually provisioned
Other receivables except for accounts Based on historical credit loss experience combined with
Other receivables - receivable from internal related parties current conditions and predictions of future economic
accounts receivable other and accounts for which credit conditions the expected credit loss is calculated by default
portfolio impairment losses have been risk exposure and the expected credit loss rate for the next
individually provisioned 12 months or the entire duration.For accounts receivable that are measured for expected credit losses based on their aging their aging is calculated continuously from
the initial recognition date of the debt. The corresponding provision ratio for expected credit losses at different aging stages is as
follows:
Aging Provision ratio (%)
Within 6 months --
6 months - 1 year 10.00
1 - 2 years 20.00
2 -3 years 40.00
Over three years 100.00
12. Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
13. Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
14. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in other comprehensive
income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to more relevant
131WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
accounting policies in NoteV.11 Financial Instrument.
15. Other account receivables
Determination method of expected credit loss and accounting treatment
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
16. Inventory
(1) Classification of inventory
Inventory mainly includes raw materials work in progress finished products contract performance costs etc.
(2) The pricing method for outbound inventory
Valuation shall be based on the weighted average method for outbound inventory;
(3) The perpetual inventory system is applied.
(4) Amortization method for low value consumables and packaging materials
Low value consumables are amortized with one-time amortization method upon receipt; Packaging materials are amortized with
one-time amortization method upon receipt.
(5) Recognition criteria and provision method for inventory depreciation reserves
The net realizable value of inventory refers to the estimated selling price of inventory in daily activities minus the estimated
costs to be incurred until completion estimated sales expenses and related taxes. When determining the net realizable value of
inventory it is based on conclusive evidence obtained while considering the purpose of holding inventory and the impact of events
after the balance sheet date.On the balance sheet date inventory is measured at the lower of cost or net realizable value. When its net realizable value is
lower than its cost the provision for inventory impairment is withdrawn. The provision for inventory impairment is usually
withdrawn based on the difference between the cost of a single inventory item and its net realizable value. For inventory with a large
quantity and low unit price the provision for inventory impairment shall be withdrawn according to the inventory category; For
inventory related to product lines produced and sold in the same region with the same or similar end use or purpose and difficult to
measure separately from other items the provision for inventory impairment can be made through consolidation.After the provision for inventory impairment has been made if the influencing factors that previously reduced the value of
inventory have disappeared resulting in the net realizable value of inventory higher than its book value it shall be reversed within
the original provision for inventory impairment and the reversed amount shall be included in the current gains/losses.
17. Assets held for sale
(1) Non-current assets held for sale and disposal group
If the Company mainly recovers the book value of a non-current asset through sale (including exchange of non-monetary assets
with commercial substance the same below) rather than continuing to use it or disposing of it it will be classified as held for sale.The specific criteria are to meet the following conditions simultaneously: a non-current asset or disposal group can be immediately
sold under the current circumstances in accordance with the customary practice of selling such assets or disposal groups in similar
transactions; The company has made a resolution regarding the sale plan and obtained a confirmed purchase commitment; The sale is
expected to be completed within one year. Among them the disposal group refers to a group of assets that are disposed of as a whole
through sale or other means in a transaction as well as the liabilities directly related to these assets transferred in the transaction. If
132WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
the asset group or the portfolio of asset groups to which the disposal group belongs has been allocated the goodwill acquired in the
business combination in accordance with the Accounting Standards for Enterprises No. 8- Impairment of Assets the disposal group
shall include the goodwill allocated to the disposal group.When the Company initially measures or re-measures non-current assets held for sale and disposal groups on the balance sheet
date if their carrying value is higher than the net amount of fair value minus selling expenses the carrying value shall be reduced to
the net amount of fair value minus selling expenses and the reduced amount shall be recognized as asset impairment loss and
included in the current gains/losses. At the same time the provision for impairment of held for sale assets shall be made. For the
disposal group the recognized impairment loss of assets is first offset against the carrying amount of goodwill in the disposal group
and then proportionally offset against the carrying amount of various non-current assets within the disposal group that are subject to
the measurement provisions of the Accounting Standards for Enterprises No. 42- Non-current Assets Held for Sale Disposal Groups
and Discontinued Operations (hereinafter referred to as the “Standards of Assets Held for Sale”).If the net amount after deducting the
selling expenses from the fair value of the disposal group held for sale on the subsequent balance sheet date increases the previously
written down amount should be restored and reversed within the asset impairment loss amount recognized for non-current assets
measured under the Standards of Assets Held for Sale after being classified as holding for sale. The reversed amount should be
included in the current gains/losses and the book value of each non-current asset measured under the Standards of Assets Held for
Sale in the disposal group except for goodwill should be increased proportionally based on the proportion of its book value; The
book value of goodwill that has been offset as well as the impairment losses recognized for non-current assets under the holding for
sale standard before being classified as held for sale shall not be reversed.The non-current assets held for sale or disposed of in
disposal groups are not subject to depreciation or amortization and interest and other expenses on liabilities held for sale in disposal
groups continue to be recognized.In case non-current assets or disposal groups no longer meet the criteria for being classified as held for sale the Company will
no longer continue to classify them as assets held for sale or remove non-current assets from the disposal group and measure them in
terms of the lower of the following two: (1) the book value of such assets before being classified as assets held for sale adjusted for
depreciation amortization impairment etc. that would have been recognized if not classified assets held for sale; (2) Recoverable
amount.
(2) Recognition criteria and reporting methods for termination of operations
Termination of operation refers to a component that meets one of the following conditions can be distinguished separately and
has been disposed of or classified as held for sale: 1) the component represents an independent main business or an independent main
operating region; 2) This component is part of a related plan to dispose of an independent major business or a separate major
operating area; 3) This component is a subsidiary acquired specifically for resale.The company reports the relevant gains/losses arising from termination of operation in the income statement and discloses the
impact of termination in the notes.
18. Long term equity investment
The long-term equity investment referred to in this section refers to the long-term equity investment in which the company has
control joint control or significant influence over the invested entity. The long-term equity investments that the Company does not
have control joint control or significant influence over the investee are accounted for as financial assets measured at fair value with
changes recognized in current gains/losses. If they are non trading the Company may designate them as financial assets measured at
fair value with changes recognized in other comprehensive income at initial recognition. The accounting policy is detailed in Note
V.11 Financial Instruments.Joint control refers to the shared control of a certain arrangement by the company in accordance with relevant agreements and
the related activities of the arrangement must be unanimously agreed upon by the parties sharing control rights before making
decisions. Significant impact refers to the power of the company to participate in decision-making on the financial and operational
policies of the invested entity but the company fails to control or jointly control the formulation of these policies with other parties.
133WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(1) Recognition of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control the
initial investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s
equity under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference
between the initial cost of the long-term equity investment and the cash paid non-cash assets transferred as well as the book value of
the debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset the
retained earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities the initial investment
cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the
consolidated financial statements of the ultimate controlling party on the date of combination. With the total face value of the shares
issued as share capital the difference between the initial cost of the long-term equity investment and total face value of the shares
issued shall be used to offset against the capital reserve. If the capital reserve is insufficient to offset the retained earnings shall be
adjusted. For business combination resulting in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions these transactions will be judged whether they shall be
treated as “package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtain ing control.If they are not belonging to “package deal” the initial investment cost of the long-term equity investment shall be the absorbing
party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling
party on the date of combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for
further share acquisition on the date of combination shall offset against the capital reserve. If the capital reserve is insufficient to
offset the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held 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.For business combination resulted in an enterprise not under common control by acquiring equity of the acquire under common
control through a stage-up approach with several transactions these transactions will be judged whether they shall be treat as
“package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtaining control . If they
are not belonging to “package deal” the initial investment cost of the long-term equity investment accounted for using cost method
shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investment cost.For previously held equity accounted for using equity method relevant other comprehensive income will not be accounted for.The intermediary fees such as audit legal services evaluation consulting and other related management expenses incurred by the
merging or purchasing party for the enterprise merger shall be included in the current gains/losses at the time of occurrence.Except for long-term equity investments formed by corporate mergers other equity investments are initially measured at cost
which is determined based on the actual cash purchase price paid by the company the fair value of equity securities issued by the
company the value agreed upon in investment contracts or agreements the fair value or original book value of assets exchanged in
non-monetary asset exchange transactions and the fair value of the long-term equity investment itself depending on the method of
acquisition. The expenses taxes and other necessary expenditures directly related to obtaining long-term equity investments are also
booked into investment cost. For long-term equity investments that can have a significant impact on the investee or exercise joint
control but do not constitute control due to additional investments the cost of long-term equity investments is the sum of the fair
value of the original held equity investment determined in accordance with the Accounting Standards for Enterprises No. 22-
Recognition and Measurement of Financial Instruments and the cost of additional investments.
(2) Subsequent measurement and recognition methods of gains/losses
Long term equity investments that have joint control (excluding joint operators) or significant influence over the invested entity
shall be measured with the equity method. Besides in the company's financial statements long-term equity investments that can
exercise control over the investee is measured with cost method.* Long term equity investments measured with cost method
134WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
When measured with cost method long-term equity investments are valued at their initial investment costs and the cost of long-
term equity investment shall be adjusted in case of additional or recovered investments. Current investment income is recognized
based on the cash dividends or profits declared but not yet distributed by the investee except for the actual payment made at the time
of investment or the cash dividends or profits included in the consideration.* Long term equity investments measured with equity method
When measured with equity method where the initial investment cost of a long-term equity investment exceeds the investor’s
interest in the fair value of the invested party’s identifiable net assets at the acquisition date no adjustment shall be made to the initial
investment cost. Where the initial investment cost is less than the investor’s interest in the fair value of the invested party’s
identifiable net assets at the acquisition date the difference shall be charged to current gains/losses and the cost of the long-term
equity investment shall be adjusted accordingly.When measured with the equity method investment income and other comprehensive income shall be recognized on the basis of
the Group’s share of the net gains/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 in terms of the Group’s share of profit or cash dividend distributed by the invested party. In respect of changes in
shareholders’ equity other than net gains/losses other comprehensive income and profit distribution of invested party the carrying
value of long-term equity investment shall be adjusted and included in the capital reserves. Share in the invested party’s net
gains/losses shall be recognized after the net profit of the investee is adjusted on the basis of the fair values of the invested party’s
individual separately identifiable assets at the time of acquisition. In the event of in-conformity between the accounting policies and
accounting periods of the invested party and the Company the financial statements of the invested party shall be adjusted in
conformity with the accounting policies and accounting periods of the Company. Investment income and other comprehensive
income shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint ventures in
which the assets disposed of or sold are not classified as operation the share of unrealized gains/losses arising from inter-group
transactions shall be offset by the portion attributable to the Company. Investment gain shall be recognized accordingly. However
any unrealized loss arising from inter-group transactions between the Group and an invested party will not be offset to the extent that
the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified as operation to its joint
ventures or associates 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 booked into current gains/losses. In the event that
the Group sold an asset classified as operation to its associates or joint ventures the difference between the carrying value of
consideration received and operation shall be fully booked into current gains/losses. In the event that the Company acquired an asset
which formed an operation from its associates or joint ventures relevant transaction shall be accounted for in accordance with
“Accounting Standards for Business Enterprises No. 20 “Business combination”. Gains/losses related to the transaction shall be
measured in full.The Group’s share in the net losses of the invested party shall be recognized to the extent that the carrying amount of the long-
term equity investment together with any long-term interests that in substance form part of the investor’s net investment in the
invested party are reduced to zero. If the Group has to assume additional obligations the expected liabilities shall be recognized in
terms of the estimated obligation assumed and be booked into the investment loss for the period. Where the invested party makes
profits in subsequent periods the profits attributed to the company shall be firstly used to make up unrecognized losses.* Acquisition of minority interest
At the time of preparing consolidated financial statements the difference between the increase in the long-term equity investment
raising from the purchase of minority interest and the net assets attributable to the subsidiary which are measured continuously since
the purchase date (or combination date) in terms of the proportion of newly acquired shares shall be used to adjust the capital surplus
or retained earnings in case capital surplus is insufficient.* Disposal of long-term equity investments
135WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In consolidated financial statements in case the parent company disposes part of long-term equity investments in a subsidiary
without loss of control the difference between disposal price and the net asset of the subsidiary related to the disposal of the long-
term equity investments shall be booked into the owners’ equity. If disposal of a portion of the long-term equity investments in a
subsidiary by the parent company results in the loss of its control on the subsidiary the relevant accounting policies described in
Note V.7(2). “Preparation method of consolidated financial statements” shall prevail.On disposal of a long-term equity investment otherwise the difference between the carrying amount of the investment and the
actual consideration paid is recognized through current gains/losses.In respect of the long-term equity investment measured with equity method in case the remaining equity after disposal is also
measured with equity method other comprehensive income previously under owners’ equity shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by invested party on pro rata basis at the time of
disposal. The owners’ equity recognized due to changes in other owners’ equity (excluding net gains/losses other comprehensive
income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.In respect of long-term equity investment measured with cost method in case the remaining equity is also measured with equity
method after disposal other comprehensive income recognized and measured with equity method or recognition and measurement
principle before control over the invested party shall be accounted for in terms of 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 current gains/losses
on pro rata basis; among the net assets of invested party unit recognized with equity method (excluding net gains/losses other
comprehensive income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the group at the time of preparing
separate financial statements the remaining equity which can apply common control or impose significant influence over the
invested party after disposal shall be measured with equity method. Such remaining equity shall be treated as being measured with
equity method since it is obtained and adjustment shall be made accordingly. The remaining equity which cannot apply common
control or impose significant influence over the invested party after disposal shall be accounted for in accordance with the
recognition and measurement principles for financial instruments. The difference between its fair value and carrying amount as at the
date of losing control shall be booked into current gains/losses. In respect of other comprehensive income recognized with equity
method or the recognition and measurement principles of financial instruments before the company obtains control over the invested
party it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by
invested party at the time when the control over invested party is lost. Changes in other owners’ equity than net gains/losses other
comprehensive income and profit distribution) under net asset of invested party recognized with equity method shall be transferred to
current gains/losses at the time when the control over invested party is lost. Of which for the remaining equity after disposal
measured with equity method other comprehensive income and other owners’ equity shall be carried forward on pro rata basis and
for the remaining equity after disposal measured with the recognition and measurement principles of financial instruments other
comprehensive income and other owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equity investment by
the Group the remaining equity after disposal shall be accounted for using the recognition and measurement standard of financial
instruments. The difference between its fair value and carrying amount as at the date of losing common control or significant
influence shall be included in current gains/losses. In respect of other comprehensive income recognized under previous equity
investment using equity method it shall be accounted for in accordance with the same accounting treatment for direct disposal of
relevant asset or liability 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 party accounted for and
recognized using equity method) shall be transferred to current gains/losses at the time when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the control over the
subsidiary is lost. If the said transactions belong to “package deal” each transaction shall be accounted for as a single transaction of
disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transaction
136WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
and the carrying amount of the corresponding long-term equity investment of disposed equity before loss of control shall initially
recognized as other comprehensive income and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
19. Investment Properties
Measurement model of investment properties
Measured with cost method
Depreciation or amortization method
Investment properties refer to properties held for the purpose of earning rental income or capital appreciation or both. They
include leased land use rights land use rights held for the purpose of appreciation and subsequent transfer leased buildings etc.Investment properties are initially measured at cost. Subsequent expenditures related to investment properties are included in the
cost of investment properties if it is highly probable that the economic benefits related to the asset will flow into the enterprise and
the cost can be measured reliably. Other subsequent expenditures are recognized in current gains/losses when they occur.The company measures subsequent investment properties with the cost model and depreciates or amortizes them in accordance
with the same policies as those for buildings or land use rights.For the impairment test methods and the methods for provision of impairment losses of investment properties please refer to
Note V. 24 “Impairment of Long-term Assets”.When owner-occupied properties or inventories are converted into investment properties or investment properties are converted
into owner-occupied properties the carrying value before the conversion is used as the carrying value after the conversion.When the purpose of an investment property changes to owner-occupation as of the date of the change the investment property
is converted into fixed assets or intangible assets. When the purpose of an owner-occupied property changes to earning rental income
or capital appreciation as of the date of the change the fixed assets or intangible assets are converted into investment properties.Upon conversion if the investment property is measured with the cost model after conversion the carrying value before the
conversion is used as the carrying value after the conversion; if the investment property is measured with the fair value model after
conversion the fair value on the conversion date is used as the carrying value after the conversion.When an investment property is disposed of or is permanently withdrawn from use and it is expected that no economic benefits
can be obtained from its disposal the investment property shall be derecognized. The disposal proceeds from the sale transfer
scrapping or damage of an investment property after deducting its carrying value and relevant taxes and fees are recognized in
current gains/losses.
20. Fixed Assets
(1) Recognition criteria
Fixed assets refer to tangible assets held for the production of goods provision of services leasing or business management
with a useful life exceeding one accounting year. Fixed asset are recognized only when it is probable that the economic benefits
associated with it will flow to the Company and its cost can be measured reliably. Fixed assets are initially measured at cost taking
into account the expected impact of decommissioning costs.
(2) Depreciation method
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
Permanent ownership land Straight-line depreciation Indefinite No depreciation
House and building Straight-line depreciation 20~35 5% 2.71~4.75
Machinery equipment Straight-line depreciation 10 5% 9.50
137WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Transportation equipment Straight-line depreciation 4~5 5% 19.00~23.75
Electronic and other
Straight-line depreciation 3～10 5% 9.50~31.67
equipment
The expected residual value refers to the amount that the Company is currently expected to obtain from the disposal of the fixed
asset after deducting the expected disposal expenses assuming that the fixed asset has reached the end of its expected useful life and
is in the expected state at that time.
(3) Impairment test methods and methods for provision of impairment losses of fixed assets
For the impairment test methods and methods for provision of impairment losses of fixed assets please refer to Note V. 24
“Impairment of Long-term Assets”.
(4) Other explanations
Subsequent expenditures related to fixed assets are booked into the cost of the fixed assets if it is highly probable that the
economic benefits related to the fixed assets will flow into the Company and their costs can be measured reliably and the carrying
value of the replaced part shall be derecognized. Subsequent expenditures other than the above are recognized in current gains/losses
when they occur.A fixed asset shall be derecognized when it is in a state of disposal or when it is expected that no economic benefits can be
generated through its use or disposal. The difference between the disposal proceeds from the sale transfer scrapping or damage of a
fixed asset and its carrying value and relevant taxes and fees shall be recognized in current gains/losses.The Company reviews the useful life expected residual value and depreciation method of fixed assets at least at the end of each
year. If any changes occur they will be accounted for as changes in accounting estimates.
21. Construction in Progress
The Company's construction in progress is divided into two types built by the company or by the contracting-out method. When
the construction in progress is completed and reaches the intended usable state it is transferred to fixed assets. The criteria for
determining the intended usable state shall meet one of the following situations: The physical construction (including installation) of
the fixed asset has been completely finished or substantially completed; It has undergone trial production or trial operation and the
results indicate that the asset can operate normally or can stably produce qualified products or the trial operation results show that it
can operate or conduct business normally; The expenditure on the constructed fixed asset is very small or hardly occurs any more;
The constructed fixed asset has met the design or contractual requirements or is basically in line with the design or contractual
requirements.When the construction in progress reaches the intended usable state it is transferred to fixed assets at the actual project cost. For
those that have reached the intended usable state but for which the final accounts of the project have not been settled they are first
transferred to fixed assets at the estimated value and after the final accounts of the project are settled the original estimated value is
adjusted according to the actual cost but the originally accrued depreciation will not be adjusted.For the impairment test methods and methods for provision of impairment losses of construction in progress please refer to
Note V. 24 Impairment of Long-term Assets.
22. Borrowing Costs
Borrowing costs include borrowing interest amortization of discounts or premiums auxiliary expenses and exchange
differences arising from foreign currency borrowings etc. Borrowing costs that can be directly attributed to the acquisition
construction or production of assets that meet the capitalization criteria shall commence to be capitalized when the asset
expenditures have been made the borrowing costs have occurred and the necessary acquisition construction or production activities
to bring the asset to the intended usable or sellable state have started; the capitalization shall cease when the qualifying asset under
138WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
construction or production reaches the intended usable or sellable state. The remaining borrowing costs are recognized as expenses in
the period in which they occur.For specific borrowings the amount of interest expense actually incurred during the current period after deducting the interest
income obtained from depositing the unutilized borrowing funds in the bank or the investment income obtained from temporary
investments shall be capitalized; The capitalized amount of general borrowings shall be determined by multiplying the weighted
average of the asset expenditures exceeding the specific borrowings by the capitalization rate of the general borrowings used. The
capitalization rate is determined on the basis of weighted average interest rate of the general borrowings.During the capitalization period the exchange differences of specific foreign currency borrowings shall be capitalized in full;
The exchange differences of general foreign currency borrowings shall be booked into current gains/losses.Assets that meet the capitalization criteria refer to fixed assets investment properties inventories and other assets that require a
substantial period of acquisition construction or production activities to reach the intended usable or sellable state.If an abnormal interruption occurs during the acquisition construction or production of an asset that meets the capitalization
criteria and the interruption period continues for more than 3 months the capitalization of borrowing costs shall be suspended until
the acquisition construction or production activities of the asset resume.Assets that meet the capitalization criteria refer to fixed assets investment properties inventories and other assets that require a
substantial period of acquisition construction or production activities to reach the intended usable or sellable state.
23. Intangible Assets
(1) Useful life and its determination basis estimation situation amortization method or review procedure
Intangible assets refer to identifiable non-monetary assets without physical substance that are owned or controlled by the
Company.Intangible assets are initially measured at cost. Expenditures related to intangible assets are included in the cost of intangible
assets if it is highly probable that the relevant economic benefits will flow into the Company and the cost can be measured reliably.Expenditures for items other than the above are recognized in current gains/losses when they occur.The acquired land use rights are usually accounted for as intangible assets. When constructing factories and other buildings
through self-development the expenditures for the relevant land use rights and the construction costs of the buildings are accounted
for as intangible assets and fixed assets respectively. In the case of externally purchased houses and buildings the relevant purchase
price is allocated between the land use rights and the buildings. If it is difficult to make a reasonable allocation it shal l all be treated
as fixed assets.For intangible assets with a finite useful life the original value minus the expected residual value and the cumulative amount of
the provision for impairment losses already accrued shall be amortized on a straight-line basis and evenly over its expected useful life
starting from the time they are available for use. Intangible assets with an indefinite useful life are not amortized.At the end of the period the useful life and amortization method of intangible assets with a finite useful life shall be reviewed.Changes if any will be accounted for as changes in accounting estimates. In addition the useful life of intangible assets with an
indefinite useful life is also reviewed. If there is evidence indicating that the period during which the intangible asset br ings
economic benefits to the enterprise is foreseeable its useful life shall be estimated and such intangible assets shall be amortized in
accordance with the amortization policy for intangible assets with a finite useful life.
(2) Scope of accumulation of R&D expenditures and relevant accounting treatment methods
The expenditures of the Company's internal research and development projects are divided into expenditures in the research
stage and expenditures in the development stage.Expenditures in the research stage are booked into current gains/losses when they occur.
139WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The Company's research and development expenditures includes materials used in research and development labor and service
costs amortization of research and development equipment amortization of other intangible assets and fixed assets used in the
development process and expenses such as water and electricity fees.The specific criteria for the Company to divide the expenditures of internal research and development projects into those in the
research stage and those in the development stage are as follows:
The research stage refers to the stage of original and planned investigations and research activities carried out to acquire and
understand new scientific or technical knowledge; the development stage implies the stage of activities in which research results or
other knowledge are applied to a certain plan or design before commercial production or use in order to produce new or substantially
improved materials devices products etc.Expenditures in the development stage that meet the following conditions simultaneously are recognized as intangible assets
and expenditures in the development stage that do not meet the following conditions are recognized in current gains/losses:
* It is technically feasible to complete the intangible asset so that it can be used or sold;
* There is an intention to complete the intangible asset and use or sell it;
* The way in which the intangible asset generates economic benefits including being able to prove that there is a market for
products produced with such intangible asset or that there is a market for the intangible asset itself. If the intangible asset will be used
internally it can be proved to be useful;
* There are sufficient technical financial and other resources to support the completion of the development of the intangible
asset and capable of using or selling the intangible asset;
* Expenditures attributable to the development stage of the intangible asset can be measured reliably.The specific conditions for capitalizing the expenditures in the development stage of the Company:
If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage all the
research and development expenditures incurred will be recognized in current gains/losses.
(3) Impairment test methods and methods for provision of impairment losses of intangible assets
For the impairment test methods and methods for provision of impairment losses of intangible assets please refer to Note V. 24
Impairment of Long-term Assets.
24. Impairment of long-term assets
The Company will judge if there are any sings 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 entities and associates. If there is any evidence indicating that an
asset may be impaired recoverable amount shall be estimated for impairment test. Goodwill intangible assets with an indefinite
useful life and intangible assets beyond working conditions will be tested for impairment annually regardless of whether there is any
indication of impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount the impairment
provision will be made in terms of the difference and recognized as an impairment loss. The recoverable amount of an asset is the
higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. An
asset’s fair value is the price in a sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in
an active market fair value shall be determined based on the bid price. If there is neither sale agreement nor active market for an
asset fair value shall be estimated on the basis of 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
asset for its intended sale. The present value of the future cash flows expected to be derived from the asset over the course of
continued use and final disposal is determined as the amount discounted at an appropriately selected discount rate. Provisions for
140WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
assets impairment shall be made and recognized for the individual asset. If it is not possible to estimate the recoverable amount of the
individual asset the recoverable amount of the asset group to which the asset belongs shall be defined. The asset group is the smallest
group of assets capable of generating cash flows independently.For the purpose of impairment test the carrying amount of goodwill presented separately in the financial statements shall be
allocated to the asset groups or asset group portfolio benefiting from synergy of business combination. If the recoverable amount is
less than the carrying amount the impairment loss shall be recognized. The amount of impairment loss shall first reduce the carrying
amount of any goodwill allocated to the asset group or asset groups portfolio and then reduce the carrying amount of other assets
goodwill within the asset group or asset group portfolio on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the part whose
value can be recovered.
25. long-term deferred expenses
long-term deferred expenses refer to various expenses that have been incurred but are to be amortized over a period of more
than one year and are borne by the current reporting period and subsequent periods. The long-term deferred expenses of the company
mainly include decoration and renovation costs. The long-term deferred expenses are amortized with the straight - line method over
the expected beneficial period.
26. Contract liabilities
Contract liabilities refer to the obligations of the company to transfer goods to customers in exchange for consideration received
or receivable from customers. If the customer has paid the contract consideration or the company has obtained the unconditional right
to receive payment before the company transfers the goods to the customer the company will record the received or receivable
amount as contract liability at the earlier of the actual payment date by the customer and the due payment date. Contract assets and
contract liabilities under the same contract are presented on a net basis and contract assets and contract liabilities under different
contracts are not offset.
27. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff provides service to the Company the short-term remuneration actual occurred shall
be recognized as liability and be reckoned into current gains/losses. During the accounting period when staff provides service to the
Company the actual short-term compensation occurred shall be recognized as liabilities and be reckoned into current gains/losses
except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall be
reckoned into current gains/losses or relevant asses costs at the time of actual occurrence. The employee compensation shall be
recognized as liabilities and be reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The
employee benefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medical
insurance work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as
the labor union expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the specified withdrawing
basis and proportion and be reckoned in the current profits and losses or relevant asset costs in the accounting period that the
employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit includes the defined contribution plans and defined benefit plans. Post-employment benefits plan
refers to the agreement about the post-employment benefits between the enterprise and employees or the regulations or measures the
141WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
enterprise established for providing post-employment benefits to employees. The defined contribution plan refers to the post-
employment benefits plan that the enterprise doesn’t undertake the obligation of payment after depositing the fixed charges to the
independent fund; the defined benefit plans refer to post-employment benefits plans except the defined contribution plan.
(3) Accounting treatment for retirement benefits
In case the Company terminates the employment relationship with employees before the end of the employment contracts or
provides compensation as an offer to encourage employees to accept voluntary redundancy the Company shall recognize employee
compensation liabilities arising from compensation for staff dismissal and included in current gains/losses when the Company
cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee redundant
proposals; and the Company recognize 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
for termination of employment. The salaries or wages and the social contributions to be paid for the employees who retire before
schedule from the date on which the employees stop rendering services to the scheduled retirement date shall be recognized (as
compensation for termination of employment) in the current profit or loss by the Group if 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 employees satisfying
certain conditions the supplementary retirement benefits belong to the defined benefit plans and the defined benefit liability
confirmed on the balance sheet is the value by subtracting the fair value of plan assets from the present value of defined benefit
obligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by the
independent actuary on the basis of treasury bond rate with 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) and the net interest are reckoned in the current profits and losses or other asset costs the changes generated by
recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.
28. Anticipated liabilities
When the obligations arising from contingent events such as providing external guarantees litigation matters product quality
warranties and loss contracts become the present obligations of the company and it is highly probable that the fulfillment of these
obligations will lead to an outflow of economic benefits from the company and the amount of these obligations can be reliably
measured the company will recognize these obligations as anticipated liabilities.The company initially measures the anticipated liabilities based on the best estimate of the expenditures required to fulfill the
relevant present obligations and reviews the carrying amount of the anticipated liabilities on the balance sheet date.If all or part of the expenditures required to settle anticipated liabilities are expected to be compensated by a third party the
compensation amount will be recognized as asset separately when it is basically certain that the compensation can be received and
the recognized compensation amount will not exceed the carrying amount of the anticipated liabilities.
29. Share-based Payments
(1) Accounting treatment methods for share-based payments
Share-based payments are transactions in which equity instruments are granted or liabilities determined based on equity
instruments are assumed in order to obtain services provided by employees or other parties. Share-based payments are classified into
share-based payments settled with equity instruments and share-based payments settled in cash.* Share-based payments settled with equity instruments
142WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
For share-based payments settled by equity instruments in exchange for services provided by employees they are measured at
the fair value of the equity instruments granted to employees on the grant date. In the case where the fair value amount can only be
exercised after the completion of the services during the vesting period or the achievement of the specified performance conditions
based on the best estimate of the number of exercisable equity instruments during the vesting period it is calculated on a straight-line
basis and included in the relevant costs or expenses. When the equity instruments can be exercised immediately after the grant they
are included in the relevant costs or expenses on the grant date and the capital reserve is correspondingly increased. On each balance
sheet date during the vesting period the Company makes the best estimate based on the latest subsequent information such as
changes in the number of employees who are expected to be eligible to exercise the rights and revises the estimated number of
exercisable equity instruments. The impact of the above estimates is included in the relevant costs or expenses of the current period
and the capital reserve is adjusted accordingly.For share-based payments settled by equity instruments in exchange for services provided by other parties if the fair value of
the services provided by other parties can be reliably measured it is measured at the fair value of the services provided by other
parties on the date of acquisition. If the fair value of the services provided by other parties cannot be reliably measured but the fair
value of the equity instruments can be reliably measured it is measured at the fair value of the equity instruments on the date of
acquisition of the services included in the relevant costs or expenses and the shareholders' equity is correspondingly increased.* Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on the basis of
shares 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 liability is increased accordingly. If the service
within the waiting period is completed or the specified performance conditions are met the service obtained in the current period
shall be included in the relevant costs or expenses based on the best estimate of the vesting situation within the waiting period and the
fair value of the liabilities assumed to increase the corresponding liabilities.On each balance sheet date and settlement date before the settlement of the relevant liabilities the fair value of the liabilities is
remeasured and the changes are included in the current gains/losses.
(2) Relevant accounting treatment for modification and termination of share-based payment plans
When the Company modifies a share-based payment plan if the modification increases the fair value of the equity instruments
granted the Company recognizes the increase in the services received accordingly based on the increase in the fair value of the
equity instruments. The increase in the fair value of the equity instruments refers to the difference between the fair values of the
equity instruments before and after the modification on the modification date. If the modification reduces the total fair value of the
share-based payment or adopts other methods unfavorable to employees the Company will still continue to account for the services
received as if the change had never occurred unless the Company cancels some or all of the granted equity instruments.During the waiting period if the granted equity instruments are cancelled the Company will treat the cancellation of the granted
equity instruments as an acceleration of vesting immediately recognize the amount that should be recognized in the remaining
waiting period in the current gains/losses and at the same time recognize the capital reserve. If employees or other parties are able to
choose to meet the non - vesting conditions but fail to do so during the waiting period the Company will treat it as the cancellation of
the granted equity instruments.
(3) Accounting treatment for share-based payment transactions involving the company and its shareholders or controlling
shareholders
For share-based payment transactions involving the Company and its shareholders or controlling shareholders if one of the
settlement enterprises and the service-receiving enterprise is within the Company's consolidation scope and the other is outside the
Company's consolidation scope the following accounting treatment will be carried out in the Company's consolidated financial
statements:
* If the settlement enterprise settles with its own equity instruments the share-based payment transaction will be treated as an
equity - settled share-based payment; otherwise it will be treated as a cash - settled share-based payment.
143WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
If the settlement enterprise is an investor of the service-receiving enterprise it will recognize the long-term equity investment in
the service-receiving enterprise based on the fair value of the equity instruments on the grant date or the fair value of the liability to
be assumed and at the same time recognize the capital reserve (other capital reserve) or liability.* If the service-receiving enterprise has no settlement obligation or the equity instruments granted to its employees are its own
equity instruments the share-based payment transaction will be treated as an equity - settled share-based payment; if the service-
receiving enterprise has a settlement obligation and the equity instruments granted to its employees are not its own equity instruments
the share-based payment transaction will be treated as a cash - settled share-based payment.For share-based payment transactions among enterprises within the Company's consolidation scope if the service-receiving
enterprise and the settlement enterprise are not the same enterprise the recognition and measurement of the share-based payment
transaction in the individual financial statements of the service-receiving enterprise and the settlement enterprise will be handled by
referring to the above principles.
30. Other financial instruments such as preferred stocks and perpetual bonds
(1) Distinction between perpetual bonds and preferred stocks
Financial instruments issued by the company such as perpetual bonds and preferred stocks that meet the following conditions are
considered equity instruments:
* This financial instrument does not include contractual obligations to deliver cash or other financial assets to other parties or to
exchange financial assets or financial liabilities with other parties under potential adverse conditions;
* In case the financial instrument needs to be settled or can be settled using the enterprise's own equity instruments in the future if
the financial instrument is a non-derivative instrument it does not include the contractual obligation to deliver a variable quantity of
its own equity instruments for settlement; If it is a derivative instrument the company can only settle the financial instrument by
exchanging a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets.Except for financial instruments that can be classified as equity instruments according to the above conditions other financial
instruments issued by the Company should be classified as financial liabilities.If the financial instruments issued by the company are composite financial instruments they shall be recognized as a liabili ty based
on the fair value of the liability component and the amount received after deducting the fair value of the liability component is
recognized as “other equity instruments”. The transaction costs incurred in the issuance of composite financial instruments shall be
allocated between the liability component and the equity component in proportion to their respective proportions of the total issuance
price.
(2) Accounting treatment methods for perpetual bonds and preferred stocks
Financial instruments such as perpetual bonds and preferred stocks classified as financial liabilities including their related interest
dividends gains or losses as well as gains or losses arising from redemption or refinancing are booked into current gains/ losses
except for borrowing costs that meet capitalization criteria (see Note V.22 "Borrowing Costs").When financial instruments such as perpetual bonds and preferred stocks classified as equity instruments are issued (including
refinancing) repurchased sold or cancelled the Company treats them as changes in equity and deducts related transaction costs
from equity. The company treats the distribution of equity instrument holders as profit distribution.The company does not recognize changes in fair value of equity instruments.
31. Revenue
Disclose accounting policies used for revenue recognition and measurement based on business type
When the contract signed between the company and the customer meets the following conditions simultaneously revenue is
recognized when the customer obtains control of the relevant goods: the parties to the contract have approve the contract and promise
to fulfill their respective obligations; The contract specifies the rights and obligations of all parties involved in the transfer of goods
144WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
or provision of services; The contract has clear payment terms related to the transferred goods; The contract has commercial
substance that is the performance of the contract will change the risk time distribution or amount of the company's future cash
flows; The consideration that the company is entitled to receive from transferring goods to customers is likely to be recovered.On the commencement date of the contract the company identifies each individual performance obligation in the contract and
distributes the transaction price to each individual performance obligation based on the relative proportion of the individual selling
price of the promised goods for each individual performance obligation. When determining the transaction price factors such as
variable consideration significant financing components in the contract non-cash consideration and payable customer consideration
shall be taken into account.For each individual performance obligation in the contract if one of the following conditions is met the company will recognize
the transaction price allocated to that individual performance obligation as revenue during the relevant performance period according
to the performance progress: the customer obtains and consumes the economic benefits brought by the company's performance at the
same time as the company's performance; Customers are able to control the goods under construction during the performance process
of the company; The goods produced by the company during the performance process have irreplaceable uses and the company has
the right to collect payments for the completed performance portion throughout the entire contract period. The performance progress
is determined using the input method based on the nature of the transferred goods. When the performance progress cannot be
reasonably determined if the costs already incurred by the company are expected to be compensated revenue is recognized on the
basis of the amount of costs already incurred until the performance progress can be reasonably determined.If any of the above conditions is not met the company will recognize the transaction price allocated to the single performance
obligation as revenue when the customer obtains control of the relevant goods. When determining whether the customer has obtained
control of the product the company considers the following indications: the enterprise has the right to receive payment for the
product at present that is the customer has a current payment obligation for the product; The enterprise has transferred the legal
ownership of the product to the customer that is the customer already owns the legal ownership of the product; The enterprise has
transferred the physical item to the customer meaning that the customer has already physically occupied the item; The enterprise has
transferred the main risks and rewards of ownership of the product to the customer that is the customer has obtained the main risks
and rewards of ownership of the product; The customer has accepted the product; Other signs indicating that the customer has gained
control of the product.The time point for recognizing domestic sales revenue of the company is as follows: the company delivers goods according to
the sales contract or order agreement. On the reconciliation date agreed with the buyer the goods received and inspected by the buyer
during the period from the previous reconciliation date to this reconciliation date are verified with the buyer. After verification by
both parties the risk and reward are transferred to the buyer. The company issues an invoice to the buyer based on the confi rmed
variety quantity and amount and confirms the realization of sales revenue on the reconciliation date.The recognition time point for the company's foreign sales revenue: After the customs review is completed the company
confirms the realization of sales revenue based on the export date stated on the customs declaration form.The situation where similar businesses adopt different business models involving different revenue recognition and
measurement methods
None
32. Contract Costs
Contract costs are divided into contract performance costs and contract acquisition costs.The costs incurred by the company for the performance of a contract that simultaneously meet the following conditions are
recognized as a contract performance cost asset:
(1) The cost is directly related to a current or expected contract including direct labor direct materials manufacturing
expenses (or similar expenses) costs explicitly borne by the customer and other costs incurred solely due to the contract;
(2) The cost increases the resources that the enterprise will use in the future to fulfill its performance obligations;
145WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(3) The cost is expected to be recoverable.
The incremental costs incurred by the company for obtaining a contract that are expected to be recoverable are recognized as
contract acquisition cost asset; however if the amortization period of the asset does not exceed one year it can be recognized in
current gains/losses when it occurs.Assets related to contract costs are amortized on the same basis as the recognition of revenue from the related goods or services.If the carrying value of an asset related to contract costs is higher than the difference between the following two items the
company will make an impairment provision for the excess amount and recognize it as an asset impairment loss:
(1) The remaining consideration expected to be obtained from the transfer of the goods or services related to the asset;
(2) The estimated costs to be incurred for the transfer of the related goods or services.
If the above asset impairment provision is subsequently reversed the carrying value of the asset after the reversal shall not
exceed the carrying value of the asset on the reversal date assuming no impairment provision is made.
33. Government grants
Government grants refer to monetary and non-monetary assets obtained by the Company from the government free of charge
excluding the capital invested by the government as an investor with corresponding ownership rights. Government grants are
classified into asset-related government grants and income-related government grants. The Company defines government grants
obtained for the construction or other formation of long-term assets as asset-related government grants; the remaining government
grants are defined as income-related government grants. If the grantee is not clearly specified in the government document the
following methods are used to classify the grants into income-related government grants or asset-related government grants: (1) If
the specific project to which the grant relates is specified in the government document such grant shall be divided in terms of the
relative proportion of the expenditure amount that will form assets and the expenditure amount that will be included in expenses in
the budget of the specific project. This division proportion will be reviewed on each balance sheet date and changed if necessary; (2)
If the government document only makes a general description of the use and does not specify a specific project it will be regarded as
income-related government grant. Monetary government grants are measured at the amount received or receivable. Non-monetary
government grants are measured at fair value; if the fair value cannot be reliably obtained the government grants shall be measured
at nominal value. Government grants measured at nominal value are directly recognized in the current gains/losses.The Company usually recognizes and measures government grants at the actual amount received when they are actually
received. However for those where there is conclusive evidence at the end of the period indicating that the relevant conditions
specified in the fiscal support policy are met and the fiscal support funds are expected to be received they are measured at the
receivable amount. Government grants measured at the receivable amount shall meet the following conditions simultaneously:(1)
The amount of the receivable grant has been confirmed by the relevant government department in writing or can be reasonably
estimated according to the relevant provisions of the officially issued fiscal fund management measures and there is no significant
uncertainty in the estimated amount; (2) It is based on the officially released fiscal support projects and their fiscal fund management
measures by the local fiscal department and actively disclosed in accordance with the provisions of the Regulations on the Disclosure
of Government Information and the management measures shall be universal (any qualified enterprise can apply) rather than
specifically formulated for specific enterprises; (3) The relevant grant approval document has clearly promised the disbursement
period and the disbursement of the funds is guaranteed by the corresponding fiscal budget so it can be reasonably ensured that the
funds can be received within the specified period; (4) According to the specific circumstances of the Company and the grant matter
other relevant conditions (if any) shall be met.Government grants related to assets are recognized as deferred income and amortized into the current gains/losses in a
reasonable and systematic way over the useful life of the relevant assets. Government grants related to income if they are used to
compensate for relevant costs expenses or losses in the future are recognized as deferred income and included in the current
gains/losses in the period when the relevant costs expenses or losses are recognized; if they are used to compensate for relevant costs
expenses or losses that have already occurred they are directly included in the current gains/losses.
146WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Government grants that contain both parts related to assets and parts related to income are accounted for separately according to
different parts; if it is difficult to distinguish they are classified as a whole as income-related government grants.Government grants related to the Company's daily activities are included in other income or deducted from relevant costs and
expenses according to the essence of economic transactions; government grants not related to daily activities are included in non-
operating income and expenses.In case it is required to return the recognized government grants if there is a balance of relevant deferred income the book
balance of the relevant deferred income shall be written off and the excess part is adjusted to the current gains/losses and the book
value of assets; in other cases it is directly booked into current gains/losses.
34. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Based on the difference between the carrying value of assets and liabilities and their tax bases (for items that are not recognized
as assets and liabilities but for which the tax base can be determined according to tax law provisions the difference between the tax
base and the book amount) deferred income tax assets or deferred income tax liabilities are calculated and recognized in terms of the
applicable tax rate during the period when the asset is expected to be recovered or the liability is expected to be settled.The recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be available to offset
the deductible temporary differences. At the balance sheet date if there is conclusive evidence indicating that sufficient taxable
income is likely to be obtained in future periods to offset the deductible temporary differences the deferred income tax assets that
were not recognized in previous accounting periods are recognized.The carrying value of deferred income tax assets will be reviewed at the balance sheet date. If it is likely that sufficient taxable
income will not be available in future periods to offset the benefits of the deferred income tax assets the carrying value of the
deferred income tax assets shall be written down. When it is likely that sufficient taxable income will be obtained the written-down
amount is reversed.The current income tax and deferred income tax of the company are booked in the current gains/losses as income tax expenses
or gains except for the income tax arising from business combinations transactions or events directly recognized in owners' equity.When the Company has the legal right to settle on a net basis and intends to settle on a net basis or to acquire assets and settle
liabilities simultaneously the current income tax assets and current income tax liabilities of the Company are presented at the net
amount after offset.
35. Leasing
(1) Accounting treatment method of leasing as a lessee
The company as the lessee
The main category of leased assets of the company is buildings.On the commencement date of the lease term the Company recognizes right of use assets and lease liabilities for leases other
than short-term leases and low value asset leases and separately recognizes depreciation and interest expenses during the lease term.The company adopts the straight-line method during each period of the lease term to record the lease payments for short-term
leases and low value asset leases as current expenses.
1) Right of use assets
The right of use asset refers to the lessee’s right to use the leased asset during the lease term. On the commencement date of the
lease term. The right of use assets is initially measured at cost. The cost includes: * the initial measurement amount of the lease
liability; * If there is lease incentive for the lease payment made on or before the start date of the lease term the relevant amount of
the lease incentive already enjoyed shall be deducted; * The initial direct expenses incurred by the lessee; * The lessee is expected
to incur the cost of dismantling and removing the leased asset restoring the leased asset's location or restoring the leased asset to the
state specified in the lease terms.
147WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The depreciation of the company's right of use assets is classified and provisioned with the straight-line method. For those who
can reasonably determine that ownership of the leased asset will be acquired upon the expiration of the lease term depreciation shall
be accrued over the expected remaining useful life of the leased asset; For those whose ownership of the leased asset cannot be
reasonably determined upon expiration of the lease term depreciation shall be accrued during the shorter of the lease term or the
remaining useful life of the leased asset.The company determines whether the right of use assets have been impaired and performs accounting treatment in accordance
with the relevant provisions of Enterprise Accounting Standard No. 8- Asset Impairment.
2) Lease liabilities
Lease liabilities are initially measured at the present value of lease payments that have not yet been paid on the lease term
commencement date. The lease payment amount includes: * fixed payment amount (including substantial fixed payment amount)
and if there is a lease incentive the relevant amount of the lease incentive shall be deducted; * Variable lease payments based on
indices or ratios; * The estimated amount to be paid based on the residual value of the guarantee provided by the lessee; * The
exercise price for purchasing the option provided that the lessee reasonably determines that the option will be exercised; * The
payment required to exercise the option to terminate the lease provided that the lease term reflects that the lessee will exercise the
option to terminate the lease;
The company adopts the implicit interest rate of leasing as the discount rate; If the implicit interest rate of the lease cannot be
reasonably determined the incremental borrowing rate of the company shall be applied as the discount rate. The company calculates
the interest expenses of lease liabilities during each period of the lease term based on a fixed periodic interest rate and includes them
in financial expenses. The cyclical interest rate refers to the discount rate or revised discount rate adopted by the company.Variable lease payments that are not included in the measurement of the lease liability are recognized in the current period's
gains/losses when they actually occur.When there are changes in the evaluation results of the option to renew terminate or purchase the lease the present value of the
lease liability shall be remeasured based on the changed lease payment amount and the revised discount rate and the book value of
the right of use asset shall be adjusted accordingly. When there are changes in the actual lease payment amount the expected payable
amount of the guarantee residual value or the variable lease payment amount depending on the index or ratio the lease liabi lity shall
be remeasured based on the present value calculated by the changed lease payment amount and the original discount rate and the
book value of the right of use asset shall be adjusted accordingly.
3) Short term leasing and low value asset leasing
For short-term leases (leases with a lease term of no more than 12 months on the lease commencement date) and leases of low
value assets (with a value less than 2000 yuan) the Company adopts a simplified approach by not recognizing right of use assets and
lease liabilities. Instead the lease payments are recorded in the relevant asset costs or current gains/losses with straight -line method
or other systematic and reasonable methods during each period of the lease term.
(2) Accounting treatment method of leasing as a lessor
The company as the lessor
Operating lease
The company uses the straight-line method to recognize the lease receipts from operating leases as rental income for each period
during the lease term. Variable lease payments related to operating leases that are not included in lease receipts are recognized in the
current period's gains/losses when they actually occur.Financial leasing
On the commencement date of the lease term the Company recognizes the receivable financing lease payments and terminates
the recognition of financing lease assets. The financing lease payments receivable are initially measured based on the net lease
investment (the sum of unsecured residual value and the present value of lease receipts not yet received on the lease commencement
date discounted at the lease implicit interest rate) and interest income is recognized during the lease term based on a fixed periodic
148WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
interest rate. The variable lease payments obtained by the company that are not included in the net measurement of lease investments
are recognized in the current gains/losses when they actually occur.
36. Other Important Accounting Policies and Estimates
In the process of applying accounting policies due to the inherent uncertainty of operating activities the company needs to
make judgments estimates and assumptions about the book value of financial statement items that cannot be accurately measured.These judgments estimates and assumptions are based on the past historical experience of the company's management and have
been made taking into account other relevant factors. These judgments estimates and assumptions will affect the reported amounts
of income expenses assets and liabilities as well as the disclosure of contingent liabilities on the balance sheet date. However the
actual results resulting from the uncertainty of these estimates may differ from the current estimates of the company's management
leading to significant adjustments to the carrying amounts of future affected assets or liabilities.The company conducts regular reviews of the aforementioned judgments estimates and assumptions on a going concern basis.If changes in accounting estimates only affect the current period of the change their impact is recognized in the current period of the
change; If it affects both the current and future periods of the change its impact shall be recognized in both the current and future
periods of the change.On the balance sheet date the Company needs to make judgments estimates and assumptions about the amounts of financial
statement items in the following important areas:
(1) Provision for bad debts
The company uses the expected credit loss model to evaluate the impairment of financial instruments. Applying the expected
credit loss model requires making significant judgments and estimates taking into account all reasonable and evidence-based
information including forward-looking information. When making such judgments and estimates the Company infers the expected
changes in the debtor's credit risk based on historical repayment data combined with economic policies macroeconomic indicators
industry risks and other factors.
(2) Provision for inventory depreciation
According to inventory accounting policy the company we measure inventory at the lower of cost and net realizable value and
make provisions for inventory impairment for those with costs higher than net realizable value as well as for obsolete and unsold
inventory. The impairment of inventory to net realizable value is based on evaluating the sellability and net realizable value of
inventory. To identify inventory impairment management shall make judgments and estimates based on obtaining conclusive
evidence and considering factors such as the purpose of holding inventory and the impact of events after the balance sheet date. The
difference between the actual result and the original estimate will affect the book value of inventory and the provision or reversal of
inventory impairment reserves during the period when the estimate is changed.
(3) Provision for impairment of non-financial and non-current assets
On the balance sheet date the company assesses whether there are signs of potential impairment of non-current assets other than
financial assets. For intangible assets with uncertain useful lives in addition to annual impairment tests impairment tests are also
conducted when there are signs of impairment. When there are indications that the carrying amount of non-current assets other than
financial assets cannot be recovered impairment test shall be conducted.When the book value of an asset or asset group is higher than the recoverable amount which is the higher of the net amount of
fair value minus disposal expenses and the present value of expected future cash flows it indicates impairment.The net amount after deducting disposal expenses from fair value is determined by referring to the sales agreement price or
observable market price of similar assets in fair transactions and subtracting the incremental costs directly attributable to the disposal
of the asset.When estimating the present value of future cash flows significant judgments need to be made regarding the production sale
price related operating costs and discount rate used in calculating the present value of the asset (or asset group). When estimating
149WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
the recoverable amount the company will use all available relevant information including forecasts of production selling prices and
related operating costs based on reasonable and supportable assumptions.The company tests at least once a year whether there is any impairment of goodwill. This requires estimating the present value
of future cash flows from asset groups or portfolio of asset groups that have been allocated goodwill. When estimating the present
value of future cash flows the company needs to estimate the cash flows generated by future asset groups or portfolio of asset groups
and select an appropriate discount rate to determine the present value of future cash flows.
(4) Depreciation and amortization
The company after considering the residual values of investment real estate fixed assets and intangible assets calculates and
accrues depreciation and amortization using the straight-line method over their useful lives. The company regularly reviews the
service life to determine the amount of depreciation and amortization expenses to be included in each reporting period. The service
life is determined by the company based on past experience with similar assets and expected technological updates. If there are
significant changes in previous estimates adjustments will be made to depreciation and amortization expenses in future periods.
(5) Fair value of financial instruments
For financial instruments for which there is no active trading market to provide quotes valuation techniques need to be adopted
to determine their fair values. Valuation techniques need to be used to determine fair value for financial instruments that cannot be
quoted in markets with no active trading for example the latest trading information in the market discounted cash flow method and
option pricing models. The company has established a set of workflow to ensure that qualified personnel are responsible for the
calculation verification and review of fair value. The valuation model used by the company incorporates market information as
much as possible and minimizes the use of unique information of the company. It should be pointed out that some of the information
used in the valuation model needs to be estimated by the management (such as discount rate and target exchange rate volatility). The
company regularly reviews the above estimates and assumptions and makes adjustments as necessary.
(6) Income tax
In the normal business operations of the company there is a certain degree of uncertainty in the final tax treatment and
calculation of some transactions. Whether some items can be deducted before tax requires the approval of the tax authorities in
charge. If there is a difference between the final determination result of these tax matters and the initially estimated amount such
difference will have an impact on the current income tax and deferred income tax in the period of the final determination.
37. Changes of important accounting policies and estimation
(1) Changes of important accounting policies
□Applicable □ Not applicable
In RMB
Name of entries
Influence
Content and reasons for changes in account policies subject to key
amount
influence
2023 consolidated
profit statement: 88247974.30
operation cost
2023 consolidated
In December 2024 the Ministry of Finance issued the Interpretation No. 18 of -
profit statement:Accounting Standards for Enterprises (CK [2024] No. 24) requiring that “warranty-type 88247974.30sales expensequality guarantees that are not individual performance obligations” shall be accounted for
2023 profit statement
in accordance with the provisions of the Accounting Standards for Enterprises No. 13
of parent company: 17021842.01
Contingencies (Ck [2006] No. 3).operation cost
2023 profit statement
-
of parent company:
17021842.01
sales expense
150WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In December 2024 the Ministry of Finance issued the No. 18 Interpretation of Accounting Standards for Business Enterprises
(CK[2024] No. 24) requiring that the “warranty - type quality assurance that does not belong to a single performance obligation” be
accounted for in accordance with the provisions of the Accounting Standard for Business Enterprises No. 13 Contingencies (CK
[2006] No. 3) debited into “Cost of Main Business” and “Cost of Other Business” and credited into the “Anticipated Liabilities” in
terms of the determined amount of the provision and presented in the “Operating Cost” in the income statement and the “OtherCurrent Liabilities” “Non-current Liabilities Due within One Year” “Anticipated Liabilities” and other items in the balance sheet
accordingly. When first implementing the content of this interpretation if the original provision for warranty-type quality assurance
was booked into “Sales Expenses” and other accounts in accordance with the relevant provisions of the “Accounting Standard forBusiness Enterprises No. 28 Accounting Policies Changes in Accounting Estimates and Correction of Errors” changes in accounting
accounts and statement presentation items involved in the accounting treatment of the above-mentioned warranty-type quality
assurance should be retrospectively adjusted as a change in accounting policy. This explanation shall come into force from the date of
issuance and enterprises are allowed to implement it in advance from the year of issuance.
(2) Changes in important accounting estimations
□ Applicable □ Not applicable
(3) Related entries of the financial statements at the beginning of the first year of implementing the new accounting
standards since 2024
□ Applicable □ Not applicable
38. Others
None
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
25%(IRDDenmark) 22%(VHIO，
Italy)21%(BoritBelgium) 13% 9%
The output tax is calculated based on the taxable income and 6% Collection rate 5%
VAT VAT is calculated based on the difference after deducting the 13%、9%、6%、25%(IRD，input tax available for deduction for the current period Denmark）、22%(VHIO Italy）、
21%(Borit，Belgium） collection
rate 5%
City maintaining &
Turnover tax payable 7%5%
construction tax
15%20%21%22%25%24%+
Corporation income tax Taxable income
regional tax 3.9%
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
The company WFJN WFLD WFTT WFMA WFAM WFSC WFLD(Chongqing) WFAS 15%
WFLD(Wuhan) 20%
IRD America Borit America 21%
151WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
IRD(Denmark) 22%
WFCA WFTR WFDT WFQL VHCN WFLD(Nanchang) WFAS WFSS WFLH Borit
25%
(Belgium)
VHIO(Italy) 24% + Regional tax 3.9%
2. Tax incentives
The Company WFJN WFLD WFTT and WFMA are recognized as high-tech enterprises in 2023 and enjoy a preferential
income tax rate of 15% from January 1 2023 to December 31 2025. WFAS is recognized as a high-tech enterprise in 2024 and will
enjoy a preferential income tax rate of 15% from January 1 2024 to November 30 2027. WFAM is recognized as a high-tech
enterprise in 2024 and will enjoy a preferential income tax rate of 15% from January 1 2024 to December 31 2026. WFSC is
recognized as a high-tech enterprise in 2022 and will enjoy a preferential income tax rate of 15% from January 1 2022 to December
312024.
According to the Continuation of the Enterprise Income Tax Policies for Western Development(No.232020) issued together by
Ministry of Finance SAT and NDRC from January 1 2011 to December 31 2030 the enterprises located in the west region and
mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industries in Western China and whose main
business income accounting for more than 60% of the total income of the enterprise in the current year can pay the corporate income
tax at the tax rate of 15%. In the year of 2023 WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2024 WFLD (Wuhan)was qualified small and low-profit enterprises. According to the Announcement on Further Supporting
the Development of Small and Micro Enterprises and Individual Businesses Related to Tax Policies (Announcement No. 12 of the
Ministry of Finance and the State Administration of Taxation in 2023) the taxable income of small and micro profit enterprises will
be calculated at a reduced rate of 25% and the enterprise income tax policy will be paid at a tax rate of 20% which will be extended
until December 31 2027.
3. Other
None
VII. Notes to Major Items in Consolidated Financial Statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 5360.59 6343.24
Cash in bank 2217667887.48 2241980351.17
Other monetary funds 28927203.45 32785004.73
Total 2246600451.52 2274771699.14
Including: total amount of funds deposited overseas 153019429.47 126839309.52
Other explanation
The ending balance of other monetary fund includes RMB 20363281.63 deposited in the bank acceptance deposit cash deposit for
Mastercard RMB202231.29 guarantee deposit RMB719003.22 IRD performance bond RMB7583721.64 ETC freezing
RMB4000.00 and funds in the settlement process RMB54965.67.
152WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2. Trading financial asset
In RMB
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are
1429682635.572391487144.96
included in current profit or loss
Including:
SNAT 76756716.00
Miracle Automation 10501800.00 71073900.00
Other debt and equity instrument investments 1419180835.57 2243656528.96
Including：
Total 1429682635.57 2391487144.96
3. Note receivable
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Trade acceptance bill 99914699.81 144976174.84
Total 99914699.81 144976174.84
(2) Accrued bad debt reserve
In RMB
Ending balance Opening balance
Book balance Bad debt reserve Book value Bad debt reserve
Category Accru Accru
Amou Book value Amou Book value
Amount Ratio ed Amount Ratio ed
nt nt
ratio ratio
Includin
g:
Note
receivabl
e with
bad debt 99914699. 100.00 99914699. 144976174 100.00 144976174
reserve 81 % 81 .84 % .84
accrued
on
portfolio
Includin
g:
Portfolio
1: bank 99914699. 100.00 99914699. 144976174 100.00 144976174
acceptan 81 % 81 .84 % .84
ce bill
99914699.100.0099914699.144976174100.00144976174
Total
81%81.84%.84
The bad debt reserve of note receivable is made in accordance with the general model of expected credit losses:
□Applicable □Not applicable
(3) Bad debt reserve accrued collected or reversal
Major amount of bad debt reserve collected or reversal:
□ Applicable □ Not applicable
153WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(4) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Trade acceptance bill 43071798.39
Total 43071798.39
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Note receivable charged off in the period
Nil
4. Account receivable
(1) By account age
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 3729236009.53 3841921162.54
Including: within 6 months 3641532161.27 3732178445.50
6 months to one year 87703848.26 109742717.04
1-2 years 15814370.53 26336964.64
2-3 years 12232320.70 13723160.78
Over 3 years 21845527.28 57510391.30
3-4 years 20693138.00 5607074.80
4-5 years 663355.37 19615877.12
> 5 years 489033.91 32287439.38
Total 3779128228.04 3939491679.26
(2) Accrued of bad debt reserve
In RMB
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accru Book value Accrued
Amount Ratio Amount ed Amount Ratio Amount
value
ratio
ratio
Account
receivable
with bad
debt
17072318.17072318.100.05328185328184100.00
reserve 0.45% 1.35%
accrued 27 27 0% 43.03 3.03 %
on a
single
basis
Including:
154WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Account
receivable
with bad
3737
debt 37620559 99.55 24402016. 388620 2866987 3857539
0.65%653898.65%0.74%
reserve 09.77 % 74 9836.23 8.03 958.20
accrued 93.03
on
portfolio
Including:
3737
37791282100.041474335.393949100.0081951723857539
Total -- 6538 --
28.040%011679.26%1.06958.20
93.03
Bad debt reserve accrued on single basis: 17072318.27
In RMB
Opening balance Ending balance
Name Bad debt Bad debt Accrued Accrued
Book balance Book balance
reserve reserve ratio causes
Hubei Meiyang Auto
17610371.9117610371.91
Industry Co. Ltd.Hunan Leopaard Auto Co.
8077361.138077361.13
Ltd.BD bills 4270595.02 4270595.02
Linyi Zotye Automobile
Have difficulty
Components Manufacturing 6193466.77 6193466.77 6193466.77 6193466.77 100.00%
Co. Ltd. in collection
Tongling Ruineng
4320454.344320454.34
Purchasing Co. Ltd.Brilliance Automotive Group Have difficulty
3469091.333469091.332693280.392693280.39100.00%
Holdings Co. Ltd. in collection
Dongfeng Chaoyang Diesel Have difficulty
1823262.641823262.641823262.641823262.64100.00%
Co. Ltd. in collection
Jiangsu Kawei Auto
1932476.261932476.26
Industrial Group Co. Ltd.Jiangsu Jintan Automobile
1059798.431059798.43
Industry Co. Ltd.Tianjin Levol Engine Co. Have difficulty
1018054.891018054.891018054.891018054.89100.00%
Ltd. in collection
SAIC HONGYAN Have difficulty
2297240.062297240.06100.00%
Automotive Co. Ltd in collection
Have difficulty
Other clients 3506910.31 3506910.31 3047013.52 3047013.52 100.00%
in collection
Total 53281843.03 53281843.03 17072318.27 17072318.27
Bad debt reserve accrued on portfolio: 24402016.74
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio
Within 6 months 3640596534.97
6 months to one year 87407080.86 8740708.09 10.00%
1-2 years 14549657.71 2909932.32 20.00%
2-3 years 11252099.78 4500839.88 40.00%
Over 3 years 8250536.45 8250536.45 100.00%
Total 3762055909.77 24402016.74
155WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Explanation on determining the basis for this portfolio
None
The bad debt reserve of accounts receivable is made in accordance with the general model of expected credit losses:
□ Applicable □ Not applicable
(3) Bad debt reserve accrued collected or reversal
Bad debt reserve accrued in the period:
In RMB
Amount changed in the period
Opening Currency
Category
balance Collected or Translation
Ending balance
Accrued Charged off
reversal for External
Reporting
Accrued on
53281843.032297240.064534967.2133971797.6117072318.27
portfolio
Accrued on a single
28669878.033338644.807398016.9964436.67144052.4324402016.74
basis
Total 81951721.06 5635884.86 11932984.20 34036234.28 144052.43 41474335.01
(4) Account receivable charged off in the Period
In RMB
Item Amount charged off
Account receivable charged off 34036234.28
Major account receivable charged off:
In RMB
Whether funds
Feature of account Amount of charged Reason of charged Procedures of arose from
Name
receivable off off charged off associated
transaction(Y/N)
Hubei Meiyang
Unable to be Approved by the
Auto Industry Co. Funds of goods 17284816.94 N
recovered management
Ltd.Hunan Leopaard Unable to be Approved by the
Funds of goods 8003712.40 N
Auto Co. Ltd. recovered management
Total 25288529.34
Explanation on account receivable charged off: Nil
(5) Top five account receivables and contract assets at ending balance by arrears party
In RMB
Ending
Ending balance Ratio in total ending
balanc
Ending balance of of account balance of account Ending balance of reserve for
Name e of
account receivable receivable and receivables and bad debts and contract assets
contrac
contract assets contract assets
t assets
RBCD 807220878.29 807220878.29 21.36% 3096153.84
Robert Bosch
638685114.08638685114.0816.90%1347705.10
Company
Client 3 242705004.56 242705004.56 6.42% 79495.99
156WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Client 4 217812576.48 217812576.48 5.76% 2388883.17
Client 5 138672203.69 138672203.69 3.67% 20358.96
2045095777.1
Total 2045095777.10 54.11% 6932597.06
0
5. Receivable financing
(1) Category of receivable financing
In RMB
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 1713187182.25 1661749949.46
Total 1713187182.25 1661749949.46
(2) Notes receivable pledged by the Company at period-end
Item Amount pledge at period-end
Bank acceptance bill 556575612.27
Total 556575612.27
(3) Notes endorsement or discount and undue on balance sheet date
Item Amount derecognized at period-end Amount not derecognized at period-end
Bank acceptance bill 498067461.92
Total 498067461.92
(4) Receivable financing charged off in current period
Nil
(5) Increase/decrease of receivable financing and changes in fair value of receivable financing in current
period
Nil
(6) Other explanation
Nil
6. Other accounts receivable
In RMB
Item Ending balance Opening balance
Dividends receivable 5357758.49
Other accounts receivable 925171249.08 919684126.81
157WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Total 930529007.57 919684126.81
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrued of bad debt reserve
□Applicable □Not applicable
4) Bad debt reserve accrued collected or reversal
Nil
5) Interest receivable charged off in current period
Nil
(2) Dividends receivable
1) Category of dividends receivable
In RMB
Item (or invested enterprise) Ending balance Opening balance
WFPM 5357758.49
Total 5357758.49
2) Major dividends receivable with account age over one year
Nil
3) Accrued of bad debt reserve
□Applicable □Not applicable
4) Bad debt reserve accrued collected or reversal in current period
Nil
158WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
5) Dividends receivable charged off in current period
Nil
(3) Other accounts receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds from units 7013631.68 4084594.65
Cash deposit 10540482.23 10215094.41
Staff loans and petty cash 384928.19 904305.07
Social security and provident fund paid 13024199.29 12537832.68
WFTR “platform trade” business
2542263370.702542263370.70
portfolio
Other 1830741.58 38770.10
Total 2575057353.67 2570043967.61
2) By aging
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 25570895.82 18850121.91
Within 6 months 21502060.65 18448595.63
6 months to one year 4068835.17 401526.28
1-2 years 353994.58 2544896026.07
2-3 years 2544811701.19 954984.11
Over 3 years 4320762.08 5342835.52
3-4 years 2607265.87 4524432.51
4-5 years 1497670.00 801603.01
Over 5 years 215826.21 16800.00
Total 2575057353.67 2570043967.61
3) Accrued bad debt reserve
□Applicable □Not applicable
Expected credit loss general model for provision of bad debt reserve:
In RMB
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit losses the entire duration the entire duration (with Total
over next 12 months (without credit credit impairment
impairment occurred) occurred)
Balance on Jan. 1
6259786.071644100054.731650359840.80
2024
Balance on Jan. 1
2024 in the period
Current accrued 1378791.89 1378791.89
159WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Current reversal 1145482.28 1145482.28
Current charged-off 636710.00 636710.00
Other changes -70335.82 -70335.82
Balance on Dec. 31
5786049.861644100054.731649886104.59
2024
Classification basis and bad debt reserve ratio for each stage
Changes in book balance of bad debt reserve whose amount has major changes in the period
□ Applicable □ Not applicable
4) Bad debt reserve accrued collected or reversal
Bad debt reserve accrued in the period:
In RMB
Change in current period
Opening Currency
Category Collected or Translation for Ending balance balance Accrued Charged-off
reversal External
Reporting
Bad debt 1650359840. 1649886104.
1378791.891145482.28636710.00-70335.82
reserve 80 59
1650359840.1649886104.
Total 1378791.89 1145482.28 636710.00 -70335.82
8059
5) Other accounts charged off during the reporting period
In RMB
Item Charged-off
Other accounts charged off 636710.00
6) Top 5 other accounts receivable at ending balance by arrears party
In RMB
Ratio in total ending balance Ending balance of
Enterprise Nature Ending balance Aging
of other accounts receivables bad debt reserveWFTR “platformSee “Othertrade” business 2542263370.70 2-3 years 98.73% 1644068327.93explanations”
portfolio
Autocam (China)
Automotive
Deposit margin 3559554.52 Over 3 years 0.14%
Components Co.Ltd
Intercourse
Robert Bosch
funds from 2885068.34 Within 1 year 0.11% 225599.81
Company
units
BYD Deposit margin 1530000.00 With 1 year 0.06%
Wuxi China
Resources Gas Co. Deposit margin 1364750.00 Over 3 years 0.05% 1026000.00
LTD
Total 2551602743.56 99.09% 1645319927.74
160WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
7) Listed as other receivables due to centralized fund management
Other explanations: For details of WFTR “platform trade” business portfolio please refer to the description in Note XVIII.7 “OtherSignificant Transactions and Matters Affecting Investors’ Decisions”. The ending balance of WFTR’s “platform trade” business
portfolio balance include the balance of other receivables listed in Note IV. 6(3).
7. Account paid in advance
(1) By aging
In RMB
Ending balance Opening balance
Aging
Amount Ratio Amount Ratio
Within one year 87178436.38 93.46% 56627071.44 74.31%
1-2 years 2329391.28 2.50% 17692490.92 23.22%
2-3 years 3468224.73 3.72% 1879201.90 2.47%
Over 3 years 307414.10 0.33% 3506.90
Total 93283466.49 76202271.16 100%
Explanation on reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timely manner
Nil
(2) Top 5 accounts paid in advance at ending balance by prepayment object
In RMB
Proportion in total ending balance of
Name Ending balance
accounts paid in advance (%)
State Grid Jiangsu Electric Power Co. Ltd 14198703.08 15.22
Robert Bosch Company 10933876.91 11.72
Xiangyang Kanghao Electromechanical Engineering Co. Ltd 7965920.68 8.54
CITIC Taifu Steel Trading Co. Ltd 5696544.97 6.11
Northeast Special Steel Group Dalian Special Steel Trading Co. Ltd 5671492.84 6.08
Total 44466538.48 47.67
8. Inventory
Does the Company need to comply with disclosure requirements in the real estate industry
No
(1) Category of inventory
In RMB
Ending balance Opening balance
Inventory Inventory
Item depreciation depreciation
Book balance Book value Book balance Book value
reserve or reserve or
provision for provision for
161WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
impairment of impairment of
contract contract
performance performance
costs costs
Stock
558770000.24100525696.37458244303.87590057187.69116560014.49473497173.20
materials
Goods in
555451953.0228344427.22527107525.80463097639.2030595290.34432502348.86
process
Finished
1468970529.18145401957.711323568571.471336512057.06173978548.181162533508.88
goods
Total 2583192482.44 274272081.30 2308920401.14 2389666883.95 321133853.01 2068533030.94
(2) Data resource recognized as inventory
None
(3) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
Current increase Current decrease
Item Opening balance Foreign currency Reversal or Ending balance
Accrued Other financial statement
write-off
translation
Raw materials 116560014.49 51748772.30 67126264.20 656826.22 100525696.37
Goods in process 30595290.34 12477042.36 14229339.67 498565.81 28344427.22
Finished goods 173978548.18 97987663.65 126359973.34 204280.78 145401957.71
Total 321133853.01 162213478.31 207715577.21 1359672.81 274272081.30
(4) Explanation on capitalization of borrowing costs in ending balance of inventory
Nil
(5) Explanation on the current amortization amount of contract performance cost
Nil
9. Non-current assets maturing within one year
In RMB
Item Ending balance Opening balance
Other non-current financial assets maturing within one year 50000000.00
Other non-current assets maturing within one year 509070575.38
Total 559070575.38
(1) Debt investment maturing within one year
□Applicable □ Not applicable
(2) Other debt investment maturing within one year
□Applicable □ Not applicable
162WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
10. Other current assets
In RMB
Item Ending balance Opening balance
Receivable export tax rebates 5356094.47 9103488.70
VAT refund receivable 7165454.75 114079600.14
Prepaid taxes and VAT retained 146820302.41 173908288.11
Input tax to be deducted and certification 17548216.30 2162292.69
Other 12098391.53 26655713.47
Total 188988459.46 325909383.11
11. Other equity instrument investment
In RMB
Gains Losses Reasons for
Accumulate Accumulate
recognize recognize designating
d gains d losses Dividen
d in other d in other fair value
recognized recognized ds
comprehe comprehe measurement
in other in other income
Item Ending balance Opening balance nsive nsive with changes comprehensi comprehensi recogniz
income income recognized in
ve income at ve income at ed in this
for the for the other
the end of the end of period
current current comprehensiv
this period this period
period period e income
Non-trading
Wuxi Xichan
equity
Microchip Semi- 592742690.00 592742690.00
instrument
Conductor
investment
Non-trading
equity
Other 85048000.00 85048000.00
instrument
investment
Total 677790690.00 677790690.00
12. Long-term equity investment
In RMB
Current changes (+/ -)
Openi Translat
ng ion of Ending
Opening balanc Other Cash Investmen Foreign Ending balance Investe
balance e of Addition Capit compreh dividend t gain/loss Other Impair Currenc balance of d
(book impair al al ensive or profit recognized equity ment y (book deprecientity
value) ment investme reduc income announceunder change accrued Financi value) ation
provisi nt tion adjustme d to equity al reserves
on nt issued Stateme
nts
I. Joint venture
II. Associated enterprise
915511821522021815171225001010047
WFEC
47.4466.226.61000.00290.27
301530792648395278293413961
RBCD
291.8338.86600.44630.25
Zhongl
ian 1685502 4522887 266000 1871790
Electro 046.73 70.52 000.00 817.25
nics
WFP 4146419 7331015. 872715. 535775 4431016
M 5.65 58 59 8.49 8.33
Chang
-
chun 9082823. 8472997.
609825.8
Xuyan 79 94
5
g
163WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Precor -
8587489.8420982230
s 166576 0.00
6213.3248.38
GmbH .30
-
AutoLi 1826808 300000 399456 2108661
4176035
nk 57.61 00.00 47.02 49.89
4.74
Lezhu -
894969511000001327607
o 6673618
4.4000.0071.59
Bowei 2.81
-
WuXi 390000 3791931
1080687.
ZW 00.00 2.88
12
Voith
--
HySTe 322277 3049697
102909870163
ch 084.93 40.19
4.2060.54
GmbH
-
Subtot 5947633 501277 1480845 426335 921687 84209 7035098 82230
71829
al 507.07 084.93 956.46 39.22 358.93 13.32 878.59 48.38
36.84
-
5947633501277148084542633592168784209703509882230
Total 71829
507.07084.93956.4639.22358.9313.32878.5948.38
36.84
Note:
Wuxi Weifu Precision Machinery Manufacturing Co. Ltd. was renamed into Wuxi Weifu Precision Machinery Manufacturing
Company Limited on February 28 2024.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable □Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation:
Nil
13. Other non-current financial assets
In RMB
Item Ending balance Opening balance
Financial assets classified as at fair value through profit
747471349.81804350120.06
or loss (FVTPL)
Guolian Securities 1084000.00
Investments in other debt instruments and equity
747471349.81803266120.06
instruments held for more than one year
Minus: other non-current financial assets maturing within
50000000.00
one year
Total 697471349.81 804350120.06
14. Investment real estate
(1) Investment real estate measured by cost
□ Applicable □ Not applicable
164WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In RMB
House and Construction in
Item Land use right Total
Building progress
I. Original book value
1.Opening balance 95327686.03 95327686.03
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 95327686.03 95327686.03
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 48400969.54 48400969.54
2.Current increased 1965786.10 1965786.10
(1) Accrued or amortization 1965786.10 1965786.10
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance 50366755.64 50366755.64
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3. Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending book value 44960930.39 44960930.39
2.Opening book value 46926716.49 46926716.49
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable □Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation:
Nil
165WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(2) Investment real estate measured at fair value
□ Applicable □ Not applicable
(3) Converted into investment real estate measured at fair value
Nil
(4) Investment real estate without property certification held
In RMB
Item Book value Reason for not obtaining the property rights certificate
Real estate of WFJN 52182.36 Still in process of relevant property procedures
15. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 4461619375.21 3969574102.87
Disposal of fixed assets
Total 4461619375.21 3969574102.87
(1) Fixed assets
In RMB
House and Machinery Transportation Electronic and
Item Land Total
Building equipment equipment other equipment
I. Original book
value:
1.Opening 2032107555. 5006902151. 8349724904.
42039805.211236400092.3932275299.13
balance 67 83 23
2.Current 1127532532.
454560276.29451852014.967434187.53213686053.84
increased 62
(1) Purchase 1553306.64 32198662.85 3416686.64 63088946.11 100257602.24
(2) Construction
1027274930.
in progress 453006969.65 419653352.11 4017500.89 150597107.73
transfer-in 38
(3) Increased by
combination
3.Current
4479117.4729607500.212653838.8042649897.9879390354.46
decreased
(1) Disposal or
4479117.4729607500.212653838.8042649897.9879390354.46
scrapping
4. Currency
Translation for
-5741247.31-21411753.82-2795.00-15719526.74-1369719.26-44245042.13
External
Reporting
2476447467.5407734912.9353622040.
5. Ending balance 46817358.94 1391716721.51 30905579.87
187626
II. Accumulated
depreciation
1.Opening 2741676537. 4174819425.
605180085.1523008286.27804954516.26
balance 83 51
166WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2.Current
69528324.35359872030.753537347.02158876074.86591813776.98
increased
(1) Accrued 69528324.35 359872030.75 3537347.02 158876074.86 591813776.98
3.Current
3466465.0224599696.572260449.2817471370.5647797981.43
decreased
(1) Disposal or
3466465.0224599696.572260449.2817471370.5647797981.43
scrapping
4.Conversion of
foreign currency
-2712859.44-13731937.78-9603.52-12734977.27-29189378.01
financial
statement
3063216934.4689645843.
5.Ending balance 668529085.04 24275580.49 933624243.29
2305
III. Depreciation
reserves
1.Opening
14920553.54152003807.0873319.9022287693.4316046001.90205331375.85
balance
2.Current
897774.432749525.983647300.41
increased
(1) Accrued 897774.43 2749525.98 3647300.41
3.Current
1179104.55797310.181976414.73
decreased
(1) Disposal or
1179104.55797310.181976414.73
scrapping
4.Conversion of
foreign currency
-633207.72-2785509.35-545752.23-680970.23-4645439.53
financial
statement
5.Ending balance 14287345.82 148936967.61 73319.90 23694157.00 15365031.67 202356822.00
IV. Book value
1.Ending book 1793631036. 2195581010. 4461619375.
22468458.55434398321.2215540548.20
value 32 92 21
2.Opening book 1412006916. 2113221806. 3969574102.
18958199.04409157882.7016229297.23
value 98 92 87
(2) Temporarily idle fixed assets
In RMB
Original book Accumulated Impairment
Item Book value Note
value depreciation reserve
Machinery
7506764.392450353.801399781.223656629.37
equipment
Other equipment 5988078.39 2939148.49 2749525.98 299403.92
Total 13494842.78 5389502.29 4149307.20 3956033.29
(3) Fixed assets acquired by operating lease
In RMB
Item Ending book value
Housing and building 15536662.70
Total 15536662.70
(4) Fixed assets without property certification held
In RMB
167WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Item Book value Reasons for without the property certification
No. 6 R&D Building in No. 6 Huashan Road Wuxi City 373710060.22 Still in process of relevant property procedures
Machine Shop 106 Factory 56190226.43 Still in process of relevant property procedures
WFCA - Factory and office buildings 28023666.10 Still in process of relevant property procedures
WFJN - Factory and office buildings 160396.67 Still in process of relevant property procedures
Other explanation: None
(5) Impairment test of fixed assets
□Applicable □Not applicable
(6) Disposal of fixed assets
Nil
16. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 380321816.50 564605931.90
Total 380321816.50 564605931.90
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Depreciatio Depreciation
Book balance Book value Book balance Book value
n reserves reserves
Renovation of Xinan
148242724.148242724.
Branch No. 1 workshop 4456868.76 4456868.76
of the company 89 89
Lot 103 phase VI 222994.13 222994.13 7509742.36 7509742.36
Production line and
353480907.391286034.391101419.
equipment under 353665522.78 184615.38 184615.38
installation and debugging 40 94 56
Sporadic construction and
4793935.124793935.125265721.925265721.92
installation projects
Software and system
12486323.112486323.1
under installation and 17367111.09 17367111.09
debugging 7 7
380321816.564790547.564605931.
Total 380506431.88 184615.38 184615.38
502890
(2) Changes of major construction in progress
In RMB
Accu
mulat includin
Bud
Proportio ed g:
get(t Fixed Interest
Other n of amou interest
en Current assets Ending capitaliz
Opening decrease project nt of capitaliz Source
Item thou increase transfer- balanc Progress ation
balance d in the investme intere ed of funds
sand d in in the e rate of
Period nt in st amount
yua Period the year
budget capita of the
n)
lizatio year
n
168WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
The main
structure
has been
commissio
ned and
Renovation operationa
of Xinan 412 4456 l while
Branch No. 148242 237771 381557 Own
1 workshop 45.4 868.7 93.59% ancillary 724.89 416.96 273.09 Fund
of the 0 6 works
company
remain
under
installatio
n and
commissio
ning.The main
structure
has been
commissio
ned and
operationa
l while
Lot 103 630 75097 49030 56317 2229 Own
phase VI 97.68% ancillary 9.48 42.36 863.27 611.50 94.13 Fund
works
remain
under
installatio
n and
commissio
ning.
4754679
155752286802437874
Total 54.8 862.8
467.25280.23884.59
89
(3) Provision for impairment of construction in progress
In RMB
Opening Reason for
Item Current increase Current decrease Ending balance
balance withdrawal
Equipment
184615.38184615.38
installation
Total 184615.38 184615.38 --
(4) Impairment test of construction in progress
□Applicable □Not applicable
(5) Engineering material
Other explanation: None
169WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
17. Right-of-use assets
(1) Right-of-use assets
In RMB
Item Building Mechanical equipment Total
I. Original book value:
1.Opening balance 54412701.74 26999713.53 81412415.27
2.Current increased 35659064.81 6843239.61 42502304.42
(1) Increased lease 35659064.81 6843239.61 42502304.42
3.Current decreased 5211032.45 4927821.80 10138854.25
(1) Disposal 5211032.45 4927821.80 10138854.25
4. Conversion of foreign
-1571168.06-1017292.50-2588460.56
currency financial statement
5.Ending balance 83289566.04 27897838.84 111187404.88
II. Accumulated depreciation
1.Opening balance 20705961.48 11873980.94 32579942.42
2.Current increased 14423574.95 7055000.62 21478575.57
(1) Accrued 14423574.95 7055000.62 21478575.57
3.Current decreased 5114977.17 4526797.79 9641774.96
(1) Disposal 5114977.17 4526797.79 9641774.96
4. Conversion of foreign
-286125.31-708655.21-994780.52
currency financial statement
5.Ending balance 29728433.95 13693528.56 43421962.51
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending Book value 53561132.09 14204310.28 67765442.37
2.Opening Book value 33706740.26 15125732.59 48832472.85
(2) Impairment test of right-of-use assets
□Applicable □Not applicable
18. Intangible assets
(1) Intangible assets
In RMB
Non- Trademark Patent and
Computer
Item Land use right Patent patent and trademark non-patent Total
software
technology license technology
I. Original book
value
1.Opening
372945018.62214863628.6141597126.47265193677.79894599451.49
balance
2.Current
46315114.5528044927.3974360041.94
increased
(1) Purchase 46315114.55 1820084.38 48135198.93
(2)Internal R&D
170WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(3) Increased by
combination
(4) Transfer from
construction in 26224843.01 26224843.01
progress
3.Current
362529.94362529.94
decreased
(1) Disposal or
362529.94362529.94
scrapping
4.Conversion of
foreign currency
-747375.93-9802760.05-10550135.98
financial
statement
5.Ending balance 419260133.17 241798650.13 41597126.47 255390917.74 958046827.51
II. Accumulated
amortization
1.Opening
113015433.79160301847.959709000.00109623226.43392649508.17
balance
2.Current
8747893.1741821136.4222809825.7473378855.33
increased
(1) Accrued 8747893.17 41821136.42 22809825.74 73378855.33
3.Current
362529.94362529.94
decreased
(1) Disposal 362529.94 362529.94
4.Conversion of
foreign currency
-547672.32-4707335.27-5255007.59
financial
statement
5.Ending balance 121763326.96 201212782.11 9709000.00 127725716.90 460410825.97
III. Depreciation
reserves
1.Opening
468160.7916646900.0017115060.79
balance
2.Current
increased
(1) Accrued
3.Current
decreased
(1) Disposal
4.Conversion of
foreign currency
-19868.13-19868.13
financial
statement
5.Ending balance 448292.66 16646900.00 17095192.66
IV. Book value
1.Ending book
297496806.2140137575.3615241226.47127665200.84480540808.88
value
2.Opening book
259929584.8354093619.8715241226.47155570451.36484834882.53
value
The proportion of intangible assets formed through internal R&D of the company to the balance of intangible assets at the end of
this period: 0%.
(2) Data source recognized as intangible assets
□Applicable □ Not applicable
(3) Land use right without property certification held
Other explanation: None
171WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(4) Impairment test of intangible assets
□Applicable □Not applicable
19. Goodwill
(1) Original book value of goodwill
In RMB
Name of Current increased Current decreased
invested
Formed by Translation of
entities or Opening balance Ending balance
business foreign currency Disposal matters forming
statements
goodwill combination
Merged with
1784086.791784086.79
WFTT
Merged with
248965678.87-10680759.95238284918.92
Borit
Total 250749765.66 -10680759.95 240069005.71
(2) Goodwill depreciation reserve
In RMB
Current increased Current decreased
Name of invested
Opening
entities or matters Formed by Translation of Ending balance
balance business foreign currency Disposal
forming goodwill
combination statements
Merged with WFTT
Merged with Borit 128432946.46 86485586.18 -7454845.15 207463687.49
Total 128432946.46 86485586.18 -7454845.15 207463687.49
(3) Related information of asset group or asset group portfolio of goodwill
Is consistent
Name Component and basis for asset group or asset group portfolio Operation branch and basis with previous
year (Y/N)
Long term assets related to the merger of WFTT’s goodwill; Automotive intake system
The management made it clear that this asset group will be product division; Category
WFTT Y
used and operated independently of other assets and will of asset group output
generate cash inflows independently products
Long term assets related to the merger of Borit’s goodwill; The
Other automotive parts
management made it clear that this asset group will be used and
Borit divisions; Category of asset Y
operated independently of other assets and will generate cash
group output products
inflows independently
Changes in asset group or asset group portfolio: None
Other explanation: None
(4) Specific method of determining recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
172WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
□Applicable □Not applicable
In RMB
Method of
Recoverable Depreciation determining fair Key Basis to determine
Item Book value
amount amount value and disposal parameters key parameters
expense
Average value of
Market
Borit 252193974.48 165708388.30 86485586.18 Market method comparable
multiplier
company
Total 252193974.48 165708388.30 86485586.18
The recoverable amount is determined based on the present value of expected future cash flows
?Applicable □Not applicable
In RMB
Key
Key Basis to determine
Original book Recoverable Impairment Expected parameters of
Item parameters of key parameters of
value amount amount period expected
stable period stable period
period
Income Considering
Income growth
growth rate is prudence the
rate: 5% -26%;
0% Profit income growth
Profit margin:
WFTT 182581461.12 352442268.53 5 years margin: during the stable
4%-7%;
4.90% period is 0% on the
Discount rate:
Discount rate: basis of prudence
11.67%
11.67% consideration.
Total 182581461.12 352442268.53
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years’ impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Nil
(5) Completion of performance commitments and corresponding impairment of goodwill
When goodwill is formed there is a performance commitment and the reporting period or the previous period is within the
performance commitment period
□Applicable □Not applicable
Other explanation:
To calculate the recoverable amount of the asset group portfolio the company referred to the evaluation results in Asset Valuation
Report on the Recoverable Value of the Asset Group in Which the Goodwill Associated with the Merger of Borit NV located for
the Purpose of Conducting Impairment Tests on Goodwill for Financial Reporting Purposes of WFHT issued by Wanlong
(Shanghai) Asset Appraisal Co. Ltd. (WLCP (2025) No. 40025). According to the results of impairment test the company has
made an impairment provision of RMB 86485586.18 for goodwill related to this asset group in the current period.
20. Long-term deferred expense
In RMB
Foreign currency
Amortized in the
Item Opening balance Current increase financial statement Ending balance
Period
translation
173WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Decoration
24714632.107614754.529487894.63-639026.9522202465.04
expense etc.Total 24714632.10 7614754.52 9487894.63 -639026.95 22202465.04
21. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets not offset
In RMB
Ending balance Opening balance
Item Deductible Deferred income tax Deductible temporary Deferred income tax
temporary difference assets difference assets
Unrealized profit from
65395598.2413015777.6158038282.1610362240.10
insider transactions
Deductible loss 1168677565.93 175301634.90 1021893078.26 153283961.74
Bad debt reserve 41797429.02 6435174.40 82811787.71 12593312.59
Inventory depreciation
236847793.5536125249.29286016361.3045423673.61
reserve
Depreciation reserves of
96998034.3217014413.7395427114.1116503823.10
fixed assets
Depreciation reserve of
184615.3827692.31184615.3827692.31
construction in progress
Depreciation reserves of
16646900.002497035.0016646900.002497035.00
intangible assets
Deferred income 149757581.67 22633752.36 182861766.95 27634668.38
Payable salary accrued
917718552.00145328224.99787779009.37148065821.58
expenses etc.Depreciation assets
23208041.963527337.8121482750.973311127.10
amortization difference
Depreciation reserves of
146615749.6321992362.44
other non-current assets
Lease liability 110360096.73 21571980.21 50855198.17 11460004.56
Changes in fair value 30550763.25 4582614.49 17858685.16 2678802.77
Total 3004758721.68 470053249.54 2621855549.54 433842162.84
(2) Deferred income tax liabilities not offset
In RMB
Item Ending balance Opening balance
Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
The difference between the fair value
and taxation basis of WFTT assets in a 9256736.95 1388510.52 9724500.55 1458675.07
merger not under the same control
The difference between the fair value
and taxation basis of IRD assets in a 42249682.78 9294930.21 54330413.17 11952690.89
merger not under the same control
The difference between the fair value
and taxation basis of Borit assets in a 15512362.69 3878090.60 19310735.89 4827683.93
merger not under the same control
The difference between the fair value
and taxation basis of VH business in a 42200640.32 10128153.65 53064614.54 12735507.49
merger not under the same control
Change in fair value of transaction
823158.14123473.728339996.551259587.67
financial asset
Accelerated depreciation of fixed assets 844054613.82 131777556.75 761694832.59 116424109.44
174WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Right-of-use assets 62433477.96 13999594.04 48832472.85 11023076.15
Others 83354236.41 13578003.30
Total 1099884909.07 184168312.79 955297566.14 159681330.64
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
159298304.33303420166.65121929207.77311912955.07
assets
Deferred income tax
159298304.3324870008.46121929207.7737752122.87
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Bad debt reserve 1649563010.58 1649499774.15
Inventory depreciation reserve 37424287.75 35117491.71
Loss from subsidiary 923958282.87 845349190.11
Depreciation reserve of long-term equity
8223048.38
investment
Depreciation reserves of fixed assets 105358787.68 109904261.74
Depreciation reserves of intangible assets 448292.66 468160.79
Changes in Fair Value of Other Equity Instruments 13600000.00 13600000.00
Wages payable withholding expense etc. 49304003.51 4572812.40
Total 2787879713.43 2658511690.90
Other explanation: The reason for not recognizing the deferred income tax assets is that it is uncertain whether the loss-making
subsidiaries can obtain sufficient taxable income in the future so the deferred income tax assets have not been recognized.
(5) The deductible losses of unrecognized deferred income tax assets expired in following years
In RMB
Maturity year Ending amount Opening amount Note
20243792427.29
20257635552.8912140693.54
202646267496.1646418486.84
202790932850.34126802486.76
2028104023377.77101104099.31
2029 and the following years 119116583.00
The non-expiring portion of
deductible tax losses relates to
operating losses incurred by
the Company's overseas
No expiration date 555982422.71 555090996.37
subsidiaries which qualify for
indefinite carryforward under
the tax regulations of their
respective host jurisdictions.
175WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Total 923958282.87 845349190.11
Other explanation: The portion of the deductible losses without an expiration date refers to the operating losses incurred by the
Company's overseas subsidiaries. According to the tax policies of the locations where the overseas subsidiaries operate these
operating losses can be offset indefinitely.
22. Other non-current assets
In RMB
Ending balance Opening balance
Item Provision
Provision for
Book balance for Book value Book balance Book value
impairment
impairment
Contract
4330621.434330621.4311333809.1011333809.10
acquisition cost
Engineering
equipment paid in 186322984.79 186322984.79 232894913.95 232894913.95
advance
Large deposit
certificates with a 1112512500. 1112512500.
689071260.28689071260.28
maturity of more 00 00
than one year
Financial products 160163280.47 160163280.47
Minus: provision
for impairment of
146615749.63146615749.63
other non-current
assets
1356741223.1356741223.
Total 893272397.34 893272397.34
0505
Note: In this year there were signs of impairment in one of the company's wealth management product. The Company transferred
it from transactional financial assets to other non-current assets and made corresponding asset impairment provisions based on the
estimated recoverable amount.
23. Assets with restricted ownership or use right
In RMB
Ending Opening
Item Book Restriction Restriction Book Restriction Restriction
Book value Book value
balance type reason balance type reason
Notes Notes
Monetary 20363281. 20363281. Cash pledge for 22174151. 22174151. Cash pledge for
funds 63 63 deposit bank 94 94 deposit bank
acceptance acceptance
Notes Notes
Bill 43071798. 43071798. pledge for 97820000. 97820000. pledge for
Pledge Pledge
receivable 39 39 bank 00 00 bank
acceptance acceptance
IRD IRD
Monetary 7583721.6 7583721.6 Cash 7902000.0 7902000.0 Cash
performanc performanc
funds 4 4 deposit 0 0 deposit
e bond e bond
Cash Cash
Monetary Cash Cash
719003.22 719003.22 deposit for deposit for
funds deposit deposit
Mastercard Mastercard
176WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Monetary Cash ETC Cash ETC
202231.29202231.29210720.00210720.00
funds deposit freezing deposit freezing
Monetary Court
4000.00 4000.00 4000.00 4000.00 Freezing
funds freezing
Notes Notes
Receivable 55657561 55657561 Cash pledge for 56825613 56825613 Cash pledge for
s financing 2.27 2.27 deposit bank 4.85 4.85 deposit bank
acceptance acceptance
Account 16201589. 14581430.receivable 48 53
62851964628519647125685971094843
Total
8.448.446.277.32
24. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Ending balance Opening balance
Guaranteed loan 3000000.00
Credit loan 392800433.57 818592983.28
Factory financing 16201589.48
Accrued interest 319714.38 1094984.75
Total 393120147.95 838889557.51
(2) Overdue short-term loans without payment
The total amount of overdue and unpaid short-term loans at the end of this period is 0.00 yuan.
25. Note payable
In RMB
Category Ending balance Opening balance
Bank acceptance bill 2014217247.05 1759062642.60
Total 2014217247.05 1759062642.60
At the end of the current period the total amount of matured but unpaid notes payable is 0.00 yuan.
26. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Operating funds payable for labor or
3661507490.233547366822.23
goods
Accounts payable for engineering
238437702.05121483601.06
equipment
Total 3899945192.28 3668850423.29
177WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(2) Important accounts payable with aging over 1 year or overdue
Other explanation:
Nil
27. Other account payable
In RMB
Item Ending balance Opening balance
Other accounts payable 44547794.12 108893486.63
Total 44547794.12 108893486.63
(1) Interest payable
Nil
(2) Dividends payable
Nil
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Deposit and margin 13909942.25 13422590.66
Social insurance and reserves funds that
1301468.221282686.66
withholding
Intercourse funds of entities 23526000.00 25512145.98
Restricted stock repurchase obligations 63567420.00
Other 5810383.65 5108643.33
Total 44547794.12 108893486.63
2) Important other payables with aging of over 1 year or overdue
In RMB
Item Ending balance Reasons for not repaying or carry-over
Ningbo Jiangbei High-tech Industrial Park The conditions for recognition/transfer
19026000.00
Development and Construction Co. Ltd have not yet been met
Total 19026000.00
28. Accounts received in advance
(1) Accounts received in advance
In RMB
178WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Item Ending balance Opening balance
Rent received in advance 2652511.04 2911439.65
Total 2652511.04 2911439.65
(2) Significant accounts receivable in advance with aging over 1 year or overdue
Nil
29. Contract liabilities
In RMB
Item Ending balance Opening balance
Advance payment received 56148545.13 77686881.24
Total 56148545.13 77686881.24
30. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 268481110.97 1672617818.01 1654928523.12 286170405.86
II. Post-employment welfare-
27791996.30226961486.53226213062.7028540420.13
defined contribution plans
III. Dismissed welfare 964506.11 1541564.65 1482690.53 1023380.23
IV. Incentive funds paid within one
18200000.0067660000.0018200000.0067660000.00
year
V. Other short-term welfare-
Housing subsidies employee 19372739.18 5535978.52 3024875.00 21883842.70
benefits and welfare funds
Total 334810352.56 1974316847.71 1903849151.35 405278048.92
Explanation on the Increase in Incentive Fund Payable within One Year:
The increase in the incentive fund payable within one year by RMB 67660000.00 during the current period is due to the
reclassification of long-term employee benefits payable to short-term employee benefits payable. This reclassification amount is
determined based on the company’s future payment plans.Explanation on Termination Benefits:
Termination benefits represent employee benefits payable arising from the company’s internal retirement plan for staff. The
amount expected to be paid in the following year is reported under this account.
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages bonuses allowances and
254165851.191397739831.971381132407.81270773275.35
subsidies
2. Welfare for workers and staff 87984540.24 87984540.24
3. Social insurance 323238.00 68200599.38 68211387.35 312450.03
Including: Medical insurance 268640.66 55493751.09 55530658.77 231732.98
Work injury insurance 40482.29 6846893.04 6815499.86 71875.47
Maternity insurance 14115.05 5859955.25 5865228.72 8841.58
4. Housing accumulation fund 870058.00 85993696.56 86084841.56 778913.00
5. Labor union expenditure and
9736105.1417885315.3118070241.399551179.06
personnel education expense
6. Other short-term compensation - 3385858.64 14813834.55 13445104.77 4754588.42
179WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
social security
Total 268481110.97 1672617818.01 1654928523.12 286170405.86
(3) Define contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
8523565.50173380714.40173238271.148666008.76
premium
2. Unemployment
47208.124342217.824369069.3820356.56
insurance
3. Enterprise annuity 19221222.68 49238554.31 48605722.18 19854054.81
Total 27791996.30 226961486.53 226213062.70 28540420.13
Other explanation:
Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities by
laws a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.Other than the aforesaid monthly contribution the Company takes no further payment obligation. For details of the Corporate
Annuity Plan please refer to Note XVIII.4 "Pension Plan".
31. Tax payable
In RMB
Item Ending balance Opening balance
Value-added tax 17962320.77 8011069.82
Corporation income tax 15110401.06 30183553.14
Individual income tax 6198892.34 7904270.96
City maintaining & construction tax 1103941.58 568820.85
Educational surtax 798036.26 410526.96
Property tax 6355132.42 5975709.82
Land use tax 1556476.60 1089600.19
Stamp tax 2469983.52 2219371.95
Others 155033.86 218158.80
Total 51710218.41 56581082.49
32. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Long-term borrowings due within one
200010680.5624962319.44
year
Lease payments due within one year 20693207.97 13122001.66
Total 220703888.53 38084321.10
33. Other current liabilities
In RMB
Item Ending balance Opening balance
Rebate payable 282435925.87 253258241.31
Pending sales tax 2950311.81 3881667.29
Total 285386237.68 257139908.60
180WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Changes in short-term bonds payable: Nil
34. Long-term borrowings
(1) Category of long-term borrowings
In RMB
Item Ending balance Opening balance
Credit loan 300010680.56 324762319.44
Minus: long-term borrowings maturing
200010680.5624962319.44
within one year
Total 100000000.00 299800000.00
35. Lease liability
In RMB
Item Ending balance Opening balance
Lease payments 73534246.81 56779079.32
Minus: financing expense not recognized -5524522.36 -5923881.15
Minus: lease liabilities maturing within
20693207.9713122001.66
one year
Total 47316516.48 37733196.51
36. Long-term account payable
In RMB
Item Ending balance Opening balance
Long-term account payable 8740000.00 9770000.00
Special accounts payable 18265082.11 18265082.11
Total 27005082.11 28035082.11
(1) Long-term account payable listed by nature
In RMB
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
1030000.00
(2009)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
960000.00960000.00
(2010)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
5040000.005040000.00
(2011)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
2740000.002740000.00
(2013)
Total 8740000.00 9770000.00
Other explanation:
Note to long-term accounts payable
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from October 27 2009 to October 27
2024. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed. This
government grant has reached the 15-year threshold as of the current period and has therefore been reclassified to other income.Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
181WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 27 2010 to December 27
2025. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 28 2011 to December 28
2026. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 18 2013 to December 18
2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
(2) Special accounts payable
In RMB
Opening Current Current Cause of
Item Ending balance
balance increased decreased formation
Refer to the
Removal compensation of
18265082.11 18265082.11 following
subsidiary WFJN
explanation
Total 18265082.11 18265082.11
Other explanation
In line with regulation of the house acquisition decision of People’s government of Xuanwu District Nanjing City Ning Xuan Fu
Zheng Zi (2012) No.001 part of the lands and property of WFJN needs expropriation in order to carry out the comprehensively
improvement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed
between WFJN and House Expropriation Management Office of Nanjing Xuanwu District Nanjing City 19.7067 million yuan in
total were compensated including operation losses from lessee 1.4416 million yuan in total. The above compensation was
received in last period and is making up for the losses from lessee and the above lands and property have not been collected up to
December 31 2024.
37. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
I.Post-employment benefits - Defined
19879635.5821238891.62
benefit plan net liabilities
II. Dismiss welfare 11027155.79 12926873.35
III. Other long-term welfare 15212070.31 95678717.83
Total 46118861.68 129844482.80
(2) Changes in defined benefit plan
Present value of defined benefit plan
In RMB
Item Current period Last period
I. Opening balance 21238891.62 20380744.73
II. Cost of defined benefit plan booked into
652062.46783750.58
current profit and loss
1.Current service cost 652062.46 783750.58
182WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
III. Cost of defined benefit plan booked into
-135700.881664679.09
other comprehensive income
1.Actuarial gains (losses are represented by “--135700.881664679.09
”)
IV. Other changes -1875617.62 -1590282.78
1.Welfare paid -985295.66 -2780181.37
2.Translation difference of foreign currency
-890321.961189898.59
statements
V. Ending balance 19879635.58 21238891.62
Other explanation:
According to relevant regulations in Italy the Trattamento di Fine Rapporto (TFR) system is established. VHIT shall calculate and
offer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or are
dismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. The
above-mentioned benefit plan poses actuarial risks to VHIT mainly including interest rate risk and inflation risk. The decrease in
interest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition the present value of
benefit plan obligations is related to the future payment standards of the plan which are determined based on inflation rates.Therefore an increase in inflation rate will also lead to an increase in planned liabilities.
38. Anticipated liability
In RMB
Item Ending balance Opening balance Formation cause
Pending dispute and litigation 508477.63 59459.66
Product quality assurance 121072840.23 26946035.59
Withholding sales discounts 10709925.00
Environmental protection
288233.90301008.27
commitment
Total 121869551.76 38016428.52
Note: In the previous year-end product quality warranty fees for certain subsidiaries were accounted for and presented under
accounts payable. This year in accordance with the provisions of "Accounting Standards for Business Enterprises Interpretation
No. 18" regarding "assurance-type warranties that are not considered separate performance obligations" the company has adjusted
its accounting treatment to recognize and present estimated product quality warranty fees uniformly under the "provisions for
liabilities" category.
39. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grant 188773622.29 13049446.20 50242056.99 -161675.76 151419335.74
Total 188773622.29 13049446.20 50242056.99 -161675.76 151419335.74
Other explanation:
Item with government grants involved:
In RMB
Translation of
Amount reckoned Assets
Opening New grants in foreign Ending
Items of liabilities into other income related/Income
balance the Period currency balance
in the period related
statements
Appropriation for research and
development ability of distributive 4755045.84 781651.40 3973394.44 Assets related
high-pressure common rail system
183WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
for diesel engine use and production
line technological transformation
project
Fund of industry upgrade (2013) 7252478.13 7252478.13 -- Income related
R&D and industrialization of the
high-pressure variable pump of the
1687274.46 998635.05 688639.41 Assets related
common rail system of diesel engine
for automobile
Fund of industry upgrade (2014) 36831000.00 3108958.61 33722041.39 Income related
New-built assets compensation after
44826346.03 18.626888.11 26199457.92 Assets related
the removal of parent company
Fund of industry upgrade (2016) 40000000.00 -- 40000000.00 Income related
Guiding capital for the technical
reform from State Hi-Tech 2572688.97 1218151.94 1354537.03 Assets related
Technical Commission
Implementation of the variable
cross-section turbocharger for diesel 2705753.03 1081642.59 1624110.44 Assets related
engine
Municipal technological reform
2911199.53 615654.83 2295544.70 Assets related
fund allocation in 2020
Strategic cooperation agreement
funding for key enterprise of smart 2541462.10 833156.76 1708305.34 Assets related
manufacturing in high-tech zone
The 2nd batch of provincial special
funds for industry transformation of 648856.50 422844.68 226011.82 Assets related
industrial and information in 2019
R&D and Industrialization Project
of Membrane Electrodes for High-
performance Proton Exchange 3945523.81 9000000.00 6648683.29 6296840.52 Assets related
Membrane Fuel Cells Used in
Vehicles
2023 Wuxi Industrial
9001247.04 886493.18 8114753.86 Assets related
Transformation and Upgrading Fund
Technical renovation and capacity
optimization project for annual
1676119.38 203881.13 1472238.25 Assets related
production of 150000 sets of
turbochargers
Project on the Application of High
Durability Dynamic Seal 1530000.00 -- 1530000.00 Assets related
Development Machine
Equipment Investment Project in the
Pilot Scale Stage of Hydrogen Fuel 1219446.20 637402.84 582043.36 Assets related
Cell Components in 2022
Other Assets
28067483.97 1300000.00 7348379.13 -161675.76 21857429.08 related/Income
related
Total 188773622.29 13049446.20 50242056.99 -161675.76 151419335.74
40. Share
In RMB
Change during the year (+/-)
Shares
Opening balance New shares Bonus transferred Ending balance
Other Subtotal
issued share from capital
reserve
--
Total
1002162793.005176500.05176500.0996986293.00
shares
00
Other explanation:
Decreased in share capital was due to the buy-back and cancellation of 5176500 restricted shares initially granted under the
Restricted Shares Incentive Plan.
41. Capital reserve
In RMB
184WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Item Opening balance Current increase Current decrease Ending balance
Capital premium (Share
3245698337.9887144811.763158553526.22
capital premium)
Other capital reserve 62471802.98 42633539.22 9766.98 105095575.22
Total 3308170140.96 42633539.22 87154578.74 3263649101.44
Other explanation including changes in the period and reasons for changes;
(1) Share capital premium decreased by 87144811.76 yuan in the Period including * share capital premium decreased by
58390920.00 yuan since 5176500.00 shares unlocked under restricted stock incentive plan were canceled by the Company. *
share capital premium of 28753891.76 yuan was written down as the company acquired minority shareholders’ equity of
subsidiary WFTT.
(2) The increase of 42633539.22 yuan in other capital reserves in the current period is due to changes in other equity of joint
ventures which the company enjoys in proportion to its shareholding; The decrease of 9766.98 yuan in other capital reserves in
the current period was the handling fee for buy backing shares.
42. Treasury stock
In RMB
Item Opening balance Current increase Current decrease Ending balance
Stock repurchases 469722092.24 469722092.24
Repurchase obligation of restricted stock
63567420.0063567420.00
incentive plan
Total 533289512.24 63567420.00 469722092.24
Other explanations including changes in the current period and explanations of the reasons for the changes:
The repurchase obligation of restricted stock incentive plan decreased by 63567420.00 yuan in the Period which is treasury
stocks amortized from the cancellation of 5176500 shares of restricted stocks that failed to be unlocked under the company’s
restricted stock incentive plan.
43. Other comprehensive income
In RMB
Current period
Less: written
Less: written in other
in other comprehensi
Belong
comprehensi ve income in
Less: to
Opening Account ve income in previous Belong to incom minorit Ending
Item before previous period and parent
balance e tax y balance
income tax in period and carried company
expens shareho
the year carried forward to after tax
e lders
forward to retained
after tax
current earnings in
gains/losses current
period
I. Other
comprehensive
income that -
-1573054.85135700.88135700.88
cannot be 1437353.97
reclassified to
gains/losses
Including:
Remeasure
-
changes in -1589063.65 135700.88 135700.88
1453362.77
defined benefit
plans
185WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Other
comprehensive
income that
cannot be 16008.80 16008.80
transferred to
gains/losses under
equity method
II. Other
comprehensive
income items - -
55729970.811569759.3
which will be 44160211.4 44160211.4
26
reclassified 6 6
subsequently to
gains/losses
Conversion
difference of - -
55729970.811569759.3
foreign currency 44160211.4 44160211.4
26
financial 6 6
statement
Total other - -
54156915.910132405.3
comprehensive 44024510.5 44024510.5
79
income 8 8
44. Reasonable reserve
In RMB
Item Opening balance Current increase Current decrease Ending balance
Work safety expense 3641439.97 29148145.67 26532495.36 6257090.28
Total 3641439.97 29148145.67 26532495.36 6257090.28
Other explanation including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (work safety expense): According to the Administrative Measures on the
Withdrawing and Use of Enterprise Safety Production Expenses (CZ [2022] No.136) jointly issued by the Ministry of Finance and
the State Administration of Work Safety in the current period the Company adopted excess retreat method for quarterly withdrawal
by taking the actual operating income of the previous period as the withdrawing basis.
(2) Among the above work safety expense including the work safety expense accrued by the Company in line with regulations and
the parts attributed to shareholders of the Company in work safety expense accrued by subsidiary in line with regulations.
45. Surplus reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
510100496.00510100496.00
reserves
Total 510100496.00 510100496.00
Other explanation including changes and reasons for changes:
Pursuit to the Company Law and Article of Association the Company withdraws statutory surplus reserve on 10% of the net profit.No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes over 50% of the registered capital.
46. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last year before
15054950398.1213320021325.90
adjustment
Retained profits at the beginning of the year 15054950398.12 13320021325.90
186WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
after adjustment
Add: The net profits belong to owners of
1659533740.631837291259.68
patent company of this period
Less: Withdraw employee rewards and
5535978.524604208.16
welfare funds
Less: Cash dividends payable 1185823277.46 97757979.30
Retained profit at period-end 15523124882.77 15054950398.12
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
retained profits at the beginning of the period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan
47. Operating income and cost
In RMB
Current period Last Period
Item
Income Cost Income Cost
Main operating 11010590101.39 9083542710.99 10926750670.90 9171432496.07
Other business 156673054.46 53624305.40 166391280.08 67128118.97
Total 11167263155.85 9137167016.39 11093141950.98 9238560615.04
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative or not
□Yes □No
Breakdown information of operating income and operating cost:
In RMB
Segment of automotive
Segment of automotive Segment of automotive Segment of other
after-treatment system Total
fuel injection system intake system products automotive parts
Type of contract products
Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating
income cost income cost income cost income cost income cost
Business type
Including:
Primary business
Including:
recognize at a 464562 357912 348993 295154 953075 760429 192194 179244 1101059 908354
certain point in 9665.13 4808.42 7025.02 6049.26 175.48 288.19 8235.76 2565.12 0101.39 2710.99
time
Recognized within
a certain period of
time
Other business
Including:
recognize at a 755340 326248 257605 110053 129733 120607 160097 507959 130277 499158
certain point in 49.05 30.94 12.39 93.65 88.67 2.36 16.70 5.98 666.81 92.93
time
Recognized within
a certain period of
time
238774259699205632778320.461582.333094.263953370841
Lease income
84.287.141.1060277387.652.47
4745043614343517752963329665107619681937951797521116726913716
Total
1198.466636.503858.519763.51146.42455.287952.462161.103155.857016.39
48. Operating tax and extra
In RMB
187WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Item Current period Last Period
City maintaining & construction tax 13049328.17 16905414.53
Educational surtax 9351364.94 12088114.70
Property tax 21451633.02 21212224.67
Land use tax 5804975.69 3992127.78
Vehicle use tax 18416.00 29435.60
Stamp duty 8374396.39 8287007.60
Other taxes 1649642.74 1950181.70
Total 59699756.95 64464506.58
Other explanation: Nil
Refer to Note VI taxes for the calculation and payment standards of taxes and surcharges
49. Administration expenses
In RMB
Item Current period Last Period
Salary and wage related expense 366182391.60 314566474.57
Depreciation charger and long-term
127534031.96109483887.51
assets amortization
Consumption of office materials and
29148557.9627671402.47
business travel charge
Share-based payment -19732503.59
Other 203745469.77 180107465.13
Total 726610451.29 612096726.09
50. Sales expenses
In RMB
Item Current period Last Period
Salary and wage related expense 89134548.13 73662318.04
Consumption of office materials and
13162540.5612536232.60
business travel charge
Warehouse charge 27004714.83 21000061.65
Business entertainment fee 14344721.18 14118610.14
Other 29648076.13 21005989.87
Total 173294600.83 142323212.30
51. R&D expenditure
In RMB
Item Current period Last period
Technology development expenditure 690258974.54 667871159.95
Total 690258974.54 667871159.95
52. Financial expenses
In RMB
Item Current period Last Period
Interest expenses 25385434.57 95145829.10
Interest income 101699691.65 40360794.63
Gains/losses from exchange 15276844.52 -10232320.08
188WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Handling charges 5267914.58 3488218.26
Total -55769497.98 48040932.65
53. Other income
In RMB
Sources of income generated Current period Last period
Government grants with routine
84356626.0175786785.30
operation activity concerned
VAT instant refund 101017699.02 13900358.81
Tax credit for overseas subsidiaries 9439082.70 6945676.32
Refund of individual income tax
717913.05832150.33
handling fee
Total 195531320.78 97464970.76
Among them the details of government subsidies are as follows:
Previous period Asset related or Income
Subsidy projects Current amount
amount related
Compensation for depreciation/amortization of newly built assets
18626888.11 18616741.70 Asset related
after the relocation of the parent company
R&D and industrialization of the high-pressure variable pump of the
998635.05 1012586.51 Asset related
common rail system of diesel engine for automobile
Implementation of the variable cross-section turbocharger for diesel
1081642.59 1548680.15 Asset related
engine
Transformation Guidance Funds from National High tech
1218151.94 1214425.00 Asset related
Management Committee Technology
Industrial upgrading fund 10361436.74 11977713.56 Income related
Appropriation for R&D ability of distributive high-pressure common
rail system for diesel engine use and production line technological 781651.40 781651.40 Asset related
transformation
Municipal technological reform fund allocation in 2020 615654.83 615897.08 Asset related
The 2nd batch of provincial special funds for industry transformation
422844.68 1200987.63 Asset related
of industrial and information in 2019
Subsidies for stabilizing and expanding positions 2166190.72 2715586.61 Income related
Financial Support Funds to WFJN 1030000.00 2750000.00 Income related
Top 50 Enterprises Selection in Jiangbei District Ningbo 840000.00 -- Income related
Strategic cooperation agreement funds for key intelligent
833156.76 833156.76 Income related
manufacturing enterprises in High-tech zone
Talent policy subsidies 1646000.00 663250.00 Income related
Special fund for intelligent transformation and digital transformation 500000.00 2300000.00 Income related
2022 Headquarters Enterprise Award -- 1000000.00 Income related
2020 Wuxi Science and Technology Development Fund -- 4500000.00 Income related
Technical renovation awards and guidance funds -- 1030000.00 Income related
Wuxi industrial transformation and upgrading fund 7535176.47 11678229.15 Asset related/earnings
Research and Development Subsidy for the R&D and
Industrialization Project of Membrane Electrodes for High - 4500000.00 -- Income related
performance Proton Exchange Membrane Fuel Cells Used in Vehicles
2022 hydrogen energy project R&D and settlement award 11433123.80 -- Income related
VH project rental subsidy 3502124.77 -- Income related
2023 8th batch of national manufacturing industry single champion
enterprise award granted by the Economic and Information 1500000.00 -- Income related
Technology Bureau of Jiangbei District Ningbo City
Others 14763948.15 11347879.75 Asset/Income related
189WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Previous period Asset related or Income
Subsidy projects Current amount
amount related
Total 84356626.01 75786785.30
54. Income from change of fair value
In RMB
Sources Current period Last period
Changes in the fair value of tradable financial
-17300039.609767646.64
assets
Total -17300039.60 9767646.64
55. Investment income
In RMB
Item Current period Last period
Income of long-term equity investment measured
1481848406.861596392131.72
with equity method
Investment income from holding of trading
43914146.0894704109.98
financial assets
Investment income from disposal of trading
16818201.4913328675.84
financial assets
Dividends income obtained from other equity
18590.00
instrument investments during the holding period
Income from debt restructuring -599671.45 -323525.00
Income from derecognition of financial assets
-3521058.98
measured at amortization cost
Gains/losses recognized when financing of
-3439527.22-2111334.30
accounts receivable is terminated for discounting
Total 1535039086.78 1701990058.24
56. Credit impairment loss
In RMB
Item Current period Last period
Bad debt loss of accounts receivable 6297099.34 -2323920.65
Bad debt loss of other accounts receivable -233309.61 -2078528.42
Total 6063789.73 -4402449.07
57. Asset impairment loss
In RMB
Item Current period Last period
1. Loss of inventory falling price and loss of
-162213478.31-205166872.96
contract performance cost impairment
2. Impairment loss of long-term equity
-8420913.32
investment
3. Impairment loss of fixed assets -3647300.41 -502006.79
4. Impairment loss of construction in progress -184615.38
5. Impairment loss of goodwill -86485586.18 -125422037.41
6. Others -146615749.63
Total -407383027.85 -331275532.54
190WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
58. Income from assets disposal
In RMB
Sources Current period Last period
Income from disposal of non-current assets 13291098.40 129441950.49
Loss from disposal of non-current assets -2823757.81 -1127465.96
Total 10467340.59 128314484.53
59. Non-operating income
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Payables that do not require payment 2828169.51 16309506.68 2828169.51
Penalty and compensation income 892435.26 28044.25 892435.26
Other 204273.23 774256.31 204273.23
Total 3924878.00 17111807.24 3924878.00
60. Non-operating expense
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Donation 327000.00 520000.00 327000.00
Non-current assets disposal
1790013.621776304.861790013.62
losses
Including: loss on scrapping
1790013.621776304.861790013.62
of fixed assets
Expenditure on fines and late
2982546.001020551.572982546.00
payment penalties
Other 31305.96 1094335.42 31305.96
Total 5130865.58 4411191.85 5130865.58
61. Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Payable tax in current period 43361008.86 61558228.47
Deferred income tax expense -3317862.74 -40363166.24
Total 40043146.12 21195062.23
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current period
Total profit 1757214336.68
Income tax measured by statutory/applicable tax rate 263582150.50
Impact by different tax rate applied by subsidies -18081302.74
Impact from adjusting the previous income tax 2184949.59
Impact by non-taxable revenue -224038700.14
Impact on cost expenses and losses that unable to deducted 14052355.65
Impact by the deductible losses of the un-recognized previous deferred income tax -9915351.75
The deductible temporary differences or deductible losses of the un-recognized
67714618.76
deferred income tax assets in the Period
191WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Changes in last period-ending balance of deferred income tax/liability arising from
1749005.33
the adjustment of tax rate
Impact on additional deduction -57204579.08
Income tax expense 40043146.12
62. Other comprehensive income
See Note VII.43 Other Comprehensive Income.
63. Items of cash flow statement
(1) Cash received in relation to operation activities
Other cash received in related to operation activities
In RMB
Item Current period Last period
Interest income 32663700.79 40360794.63
Government grants 46851928.27 38542836.17
Margin on operation bill 1100355.80 5804353.60Capital inflow of WFTR “platform
199235761.25trade” business portfolio
Other 29401358.02 20368806.84
Total 110017342.88 304312552.49
Explanation on other cash received in relation to operation activities: Nil
Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Cash cost 408752372.86 653211963.42
Other 9769220.53 19807691.63
Total 418521593.39 673019655.05
Explanation on other cash paid in relation to operation activities: Nil
(2) Cash in relation to investment activities
Other cash received in related to investment activities
In RMB
Item Current period Last period
Recovery of forward foreign exchange
18840000.00
settlement and sales deposit
Total 18840000.00
Significant cash received in related to investment activities: Nil
Explanation on other cash received in related to investment activities: Nil
Cash paid in related to investment activities
In RMB
Item Current period Last period
Payment of foreign exchange contract
deposit and loss of foreign exchange 13036225.94
contract
Total 13036225.94
Significant cash paid in related to investment activities: Nil
192WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Explanation on other cash paid in related to investment activities: Nil
(3) Cash in related to financing activities
Other cash paid in related to financing activities
In RMB
Item Current period Last period
Lease payments 27764816.39 18319242.80
Acquisition of the minority shareholders'
191118200.00
equity of subsidiaries
Shares repurchase for restricted stock
63567420.0074368290.00
incentive plan unlocked
Repurchase of A shares 71917549.61
Other 9766.98 27791.59
Total 282460203.37 164632874.00
Explanation on other cash paid in relation to financing activities: Nil
Changes in liabilities arising from financing activities
□Applicable ?Not applicable
(4) Explanation on cash flow listed at net amount
Nil
(5) Significant activities and financial impacts that do not involve current cash inflows and outflows but
affect the financial condition of the company or may affect the cash flow of the company in the
future
Nil
64. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities:
Net profit 1717171190.56 1913149530.09
Add: Assets impairment provision 401319238.12 335677981.61
Depreciation of fixed assets consumption of oil assets and
592342504.85529985637.44
depreciation of productive biology assets
Depreciation of right-of-use assets 21478575.57 14870657.15
Amortization of intangible assets 73374527.58 72828479.04
Amortization of long-term deferred expenses 9487894.63 7361781.35
Losses from disposal of fixed assets intangible assets and other
-10467340.59-128314484.53
long-term assets (gains shall be filled in with the sign of “-”)
Losses on scrapping of fixed assets (gains shall be filled in with the
1790013.621791596.04
sign of “-”)
Gains/losses of fair value changes (gains shall be filled in with the
17300039.60-9767646.64
sign of “-”)
Financial expenses (gains shall be filled in with the sign of “-”) -33424181.14 83562038.16
Investment loss (gains shall be filled in with the sign of “-”) -1542599344.43 -1715570129.25
Decrease of deferred income tax asset (increase shall be filled in
8492788.42-29999459.03
with the sign of “-”)
Increase of deferred income tax liability (decrease shall be filled in
-12882114.41-10363707.21
with the sign of “-”)
193WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024Decrease of inventory (increase shall be filled in with the sign of “--401241175.6914264964.67
”)
Decrease of operating receivable accounts (increase shall be filled
234141091.44-231126963.47
in with the sign of “-”)
Increase of operating payable accounts (decrease shall be filled in
500829903.35804259836.29
with the sign of “-”)
Other 5219037.26 -26360199.81
Net cash flows arising from operating activities 1582332648.74 1626249911.90
2. Major investments and financing activities that do not involve
cash receipts and payments
debt-to-capital
Convertible bonds maturing within one year
Financing to lease fixed assets
3. Net change of cash and cash equivalents:
Balance of cash at period end 1756944672.22 2061986694.41
Less: Balance of cash equivalent at year-begin 2061986694.41 2277117604.82
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents -305042022.19 -215130910.41
(2) Net cash payment for the acquisition of subsidiaries in the period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Components of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 1756944672.22 2061986694.41
Including: Cash on hand 5360.59 6343.24
Bank deposit available for payment at
1756884345.962061980351.17
any time
Other monetary funds available for
54965.67
payment at any time
II. Balance of cash and cash equivalents
1756944672.222061986694.41
at the period-end
(5) Items whose application scope is restricted but are still listed as cash and cash equivalents
Nil
(6) Monetary items not belonging to cash and cash equivalents
Reasons for not belonging to
Item Current period Last period
cash and cash equivalents
Bank deposit - principal of time deposits with a Do not meet the definition of cash
460000000.00180000000.00
maturity of more than three months and cash equivalents.Bank deposit - Accrued interest on time bank
Do not meet the definition of cash
deposits with a maturity of more than three 783541.52
and cash equivalents.months
Other monetary funds-Margin paid for bank Do not meet the definition of cash
20363281.6322174151.94
acceptance bill and cash equivalents.Do not meet the definition of cash
Other monetary funds-IRD performance bond 7583721.64 7902000.00
and cash equivalents.Do not meet the definition of cash
Other monetary funds- Mastercard margin 202231.29 210720.00
and cash equivalents.Other monetary funds- Guarantee letter margin 719003.22 Do not meet the definition of cash
194WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
and cash equivalents.Do not meet the definition of cash
Other monetary funds-ETC freeze 4000.00 4000.00
and cash equivalents.Other monetary funds-in-transit foreign Do not meet the definition of cash
1184752.79
exchange funds and cash equivalents.Do not meet the definition of cash
Other monetary funds-in-transit dividends 1309380.00
and cash equivalents.Total 489655779.30 212785004.73
Other explanation: Nil
(7) Notes to other significant activities
Nil
65. Notes to changes in entries of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil
66. Item of foreign currency
(1) Item of foreign currency
In RMB
Ending balance of foreign Rate of conversion Ending RMB balance
Item
currency converted
Monetary funds
Including: USD 13873061.05 7.1884 99725112.05
EUR 24499290.32 7.5257 184374309.16
HKD 11187803.18 0.9260 10359905.74
JPY 14894687.00 0.0462 688134.54
DKK 79733081.38 1.0084 80402839.26
Account receivable
Including: USD 2522502.37 7.1884 18132756.04
EUR 21972089.70 7.5257 165355355.46
HKD
DKK 8300064.81 1.0084 8369785.35
Long-term
borrowings
Including: USD
EUR
HKD
Other account receivables
Including: EUR 471259.96 7.5257 3546561.08
DKK 4816845.70 1.0084 4857307.20
Account payable
Including: USD 727116.62 7.1884 5226805.11
EUR 38692560.51 7.5257 291188602.63
JPY 39079396.00 0.0462 1805468.10
DKK 37002959.39 1.0084 37313784.25
CHF 233207.55 7.9977 1865124.02
Other account payable
Including: EUR 1442348.18 7.5257 10854679.70
195WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
DKK 896659.28 1.0084 904191.22
Non-current liabilities due
within one year
Including: USD 168350.65 7.1884 1210171.81
EUR 913722.70 7.5257 6876402.92
DKK 2192818.85 1.0084 2211238.53
Lease liabilities
Including: USD 225599.53 7.1884 1621699.66
EUR 3404995.75 7.5257 25624976.52
DKK 19225943.38 1.0084 19387441.30
(2) Explanation on overseas operating entities. For important overseas operating entities it is necessary
to disclose their main overseas business locations the functional currency used for accounting and
the basis for the selection. In the event that there are changes in the functional currency used for
accounting the reasons for such changes should also be disclosed.□Applicable □Not applicable
Subsidiary of the Company IRD was established in Denmark in 1990. The 66% equity of IRD were acquired by the Company in
cash in April 2019. In October 2020 the company acquired the remaining 34.00% equity of IRD in cash thus the Company holds
100% equity of IRD. IRD is denominated in Danish krone and IRD is mainly engaged in R&D production and sales of fuel cell
components.Subsidiary Borit was established in Belgium in 2010. The Company acquired 100% equity of Borit in cash in November 2020. Borit
is denominated in Euro and engaged in R&D production and sales of fuel cell components.Subsidiary VHIO was established in Italy in 2000. The Company acquired 100.00% equity of VHIO in cash in October 2022. The
company is denominated in Euro and engaged in R&D production and sales of vacuum and hydraulic pumps.
67. Lease
(1) The company as the lessee
?Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value assets
□Applicable □Not applicable
Leasing cost of simplified handling of short-term leasing or leasing costs for low value assets is 8662073.91 yuan; The total cash
outflow related to leasing is 34182250.68 yuan.The relevant information on the right-of-use assets can be found in Note VII. 17 Right of Use Assets.Situations involving lease sales-back
(2) The company as the lessor
Operating lease with the company as the lessor
□Applicable □Not applicable
In RMB
Including: income related to variable lease payments not included in
Item Rental income
rental income
Rental of houses and equipment 26395387.65
Total 26395387.65
Financing lease with the company as the lessor
196WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
□Applicable □Not applicable
Annual un-discounted rental income for the next five years
□Applicable □Not applicable
Adjustment table for un-discounted rental income and net lease investments
(3) Recognize gains/losses arising from financing lease sale with the company as producer or dealer
□Applicable □Not applicable
68. Data resource
Nil
69. Others
Nil
VIII. R&D expenditure
In RMB
Item Current period Last period
Employee compensation 288363791.43 285889549.54
Direct investment 194751232.70 195791776.44
Depreciation and amortization 119233302.47 117384698.44
Other expenses 87910647.94 68805135.53
Total 690258974.54 667871159.95
Including: expensed R&D expenditure 690258974.54 667871159.95
1．R&D items that meet capitalization conditions
Nil
2．Important outsourced projects under research
Nil
IX. Changes in consolidation scope
1．Enterprise combination not under the same control
1) Enterprise combines not under the same control occurred in the period
Nil
2) Consolidation cost and goodwill
Nil
3) Book value of identifiable assets and liabilities of the merged party on the merger date
Nil
197WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights
in the Period or not
□Yes □No
5) Explanation on the inability to reasonably determine the merger consideration or the fair value of
identifiable assets and liabilities of the acquired party on the purchase date or at the end of the
merger period
Nil
6) Other explanation
Nil
2．Enterprise combination under the same control
1) Enterprise combination under the same control that occurred in the current period
Nil
2) Consolidation cost
Nil
3) Book value of assets and liabilities of the merged party on merger date
Nil
3．Reverse purchase
Nil
4．Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control or not
□Yes □No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
period or not
□Yes □No
5．Changes in the scope of consolidation due to other reasons
Nil
6．Others
198WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Nil
X. Equity in other entities
1. Equity in subsidiary
(1) Constitute of enterprise group
In ten thousand yuan
Main Registe
Registered Share-holding ratio
Subsidiary operation red Business nature
capital Acquired way
place place Directly Indirectly
Spare parts of internal- Enterprise combines under the
WFJN 34628.68 Nanjing Nanjing combustion engine 80.00% same control
Automobile exhaust purifier Enterprise combines under the
WFLD 50259.63 Wuxi Wuxi muffler 100.00% same control
Spare parts of internal-
WFMA 16500 Wuxi Wuxi Investment combustion engine 100.00%
Spare parts of internal-
WFCA 21000 Wuxi Wuxi combustion engine 100.00%
Investment
Enterprise combines under the
WFTR 3000 Wuxi Wuxi Trading 100.00% same control
Spare parts of internal-
WFSC 7600 Wuxi Wuxi 66.00% Investment combustion engine
Spare parts of internal- Enterprise combines not under
WFTT 11136 Ningbo Ningbo combustion engine 98.83% 1.17% the same control
Spare parts of internal- Enterprise combines not under
WFAM USD3310 Wuxi Wuxi combustion engine 51.00% the same control
Automobile exhaust purifier
WFLD (Wuhan) 300 Wuhan Wuhan muffler 60.00%
Investment
WFLD Chongqin Chongq Automobile exhaust purifier
5000 100.00% Investment (Chongqing) g ing muffler
WFLD Nancha Automobile exhaust purifier
3000 Nanchang 100.00% Investment (Nanchang) ng muffler
WFAS 16500 Wuxi Wuxi Smart car equipment 66.00% Investment
WFLH 2000 Fuzhou Fuzhou Smart car equipment 40.00% Investment
Enterprise combines not under
WFDT USD2000 Wuxi Wuxi Hub Motor 80.00%
the same control
WFQL 50000 Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
Enterprise combines not under
VHCN 13400 Wuxi Wuxi Vacuum and hydraulic pump 100.00% the same control
WFSS 35000 Wuxi Wuxi Smart car equipment 61.43% Investment
Denmar
SPV DKK13009 Denmark Investment k 100.00% Investment
Denmar Enterprise combines not under
IRD DKK12732 Denmark Fuel cell components k 100.00% the same control
Americ Enterprise combines not under
IRD America USD1543 America Fuel cell components a 100.00% the same control
Belgiu Enterprise combines not under
Borit EUR1183 Belgium Fuel cell components m 100.00% the same control
Americ Enterprise combines not under
Borit America USD5 America Fuel cell components a 100.00% the same control
Enterprise combines not under
VHIO EUR500 Italy Italy Vacuum and hydraulic pump 100.00% the same control
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the voting rights
but not controlling the investee: Nil
Basis for inclusion in the scope of consolidation of significant structured entities control: Nil
Basis for determining whether a company is an agent or a principal: Nil
Other explanation: Nil
2. Changes in the consolidation scope due to other reasons
199WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In March 2024 WFAS a holding subsidiary jointly invested with Ningbo Mihe Technology Co. Ltd. and Qihengcheng
Automotive Technology (Shanghai) Co. Ltd. to establish WFLH. The registered capital of WFLH was RMB 20.00 million with the
following equity structure: WFAS subscribed capital contribution of RMB 8.00 million representing 40% equity ownership;
Ningbo Mihe Technology Co. Ltd. subscribed capital contribution of RMB 6.00 million representing 30% equity ownership;
Qihengcheng Automotive Technology (Shanghai) Co. Ltd. subscribed capital contribution of RMB 6.00 million representing 30%
equity ownership. In accordance with WFLH’s Articles of Association and investment agreements WFAS holds control over WFLH.Consequently the Company has consolidated WFLH into its consolidated financial statements from March 2024 onward.In June 2024 the Company jointly invested other four parties including Boyuan (Shanghai) Private Equity Fund Management
Co. Ltd. to establish WFSS. The registered capital of WFSS at the time of establishment was 350.00 million yuan. The company
subscribed for a capital contribution of RMB 215.00 million accounting for a shareholding ratio of 61.43%; Boyuan (Shanghai)
Private Equity Fund Management Co. Ltd. and other shareholders jointly subscribed for a capital contribution of RMB 135.00
million with a total shareholding ratio of 38.57%. Since June 2024 WFSS has been included in the consolidation scope of the
consolidated financial statements.
3. Transactions in which the share of ownership rights and interests in a subsidiary change while the
company still controls the subsidiary
(1) Description of changes in the share of ownership rights and interests in subsidiaries
In October 2024 the Company signed "Equity Transfer Agreement of Wuxi Weifu Lida Catalytic Purifier Co. Ltd. " with Wuxi
Industrial Group，Taking the evaluated value in the "Asset Appraisal Report on the Partial Shareholder's Equity Value Involved inthe Proposed Non-public Agreement Transfer of the 5.1923% Equity of Wuxi Weifu Lida Catalytic Purifier Co. Ltd. Held by Wuxi
Industrial Development Group Co. Ltd." (Beifang Yashi Appraisal Report No. [2024] 01-984) as the pricing reference for this equity
transaction after negotiation and confirmation by all parties our company will acquire the 5.1923% equity of Weifu Lida held by
Wuxi Industrial Development Group for RMB 191118200.
(2) Impact of the transaction on the minority shareholders' equity and the owners' equity attributable to the parent company
Item WFLD
Purchase cost 191118200.00
— Cash 191118200.00
— Fair value of non-cash assets --
Total purchase cost 191118200.00
Less: Share of the net assets of the subsidiary calculated based on acquired
162364308.24
equity percentage
Difference 28753891.76
Among: Adjustment of capital reserve 28753891.76
Adjustment of surplus reserve --
Adjustment of retained profit --
Amount of minority shareholders' equity affected 162364308.24
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
WFJN 20.00% 24375325.75 22970720.04 232587892.51
WFAM 49.00% 51539960.04 45807650.00 236981571.11
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main financial information of the important non-wholly-owned subsidiary
In RMB
200WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Ending balance Opening balance
Subsi Non- Non-Non- Current Total Non- Current Total
Current Total current Current Total current
diary current liabilitie liabilitie current liabilitie liabilitieassets assets liabilitie assets assets liabilitie
assets s s assets s s
s s
WFJ 943823 574847 151867 309127 45928 355056 800008 763327 156333 372678 32816 405494
N 610.32 189.45 0799.77 770.07 252.37 022.44 834.76 722.52 6557.28 469.77 414.21 883.98
WFA 577286 542256 111954 590405 48354 638759 499003 555751 105475 529047 56622 585670
M 697.67 003.54 2701.21 298.73 171.56 470.29 254.26 474.28 4728.54 969.34 120.19 089.53
In RMB
Current period Last period
Subsidiar Total Cash flow Total Cash flow
Operation Operation
y Net profit comprehensive from operation Net profit comprehensive from operation Income Income
income activity income activity
641568618.121876628.121876628.103197928.661256020.164076571.164076571.
WFJN 7886426.15
84757504177171
928226761.110719570.4110719570.4162424160.809656797.92084163.192084163.1190320676.
WFAM
023372214405
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to structured entities included in consolidated financial statement
range
Nil
2. Transactions where the share of ownership rights and interests in a subsidiary change while the
company still maintains control over the subsidiary
(1) Description of situation where the share of owners’ equity in subsidiaries changes
Nil
(2) The impact of the transaction on the minority shareholders' equity and the owners' equity
attributable to the parent company
Other explanation: Nil
3. Equity in joint venture and associated enterprises
(1) Important joint venture and associated enterprises
Joint venture or Main operation Registered Share-holding ratio Accounting treatment on investment for
Business nature
associated enterprise place place Directly Indirect joint venture and associated enterprises
WFEC Wuxi Wuxi Catalyst 49.00% Equity method
Internal-combustion
RBCD Wuxi Wuxi 32.50% 1.50% Equity method
engine accessories
Internal-combustion
Zhonglian Electronics Shanghai Shanghai 20.00% Equity method
engine accessories
Internal-combustion
WFPM Wuxi Wuxi 20.00% Equity method
engine accessories
Changchun Xuyang Changchun Changchun Automobile components 34.00% Equity method
PrecorsGmbH Germany Germany Fuel cell components 43.39% Equity method
201WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
AutoLink Wuxi Wuxi Telematics services 9.64% Equity method
Lezhuo Bowei Shanghai Shanghai Automobile components 50.00% Equity method
Professional technical
WuXi Zhuowei Wuxi Wuxi services 39.00% Equity method
Technical R&D of
HySTech Germany Germany 40.00% Equity method
hydrogen storage systems
Holding shares ratio different from the voting right ratio: Nil
Has major influence with less 20% voting rights hold or has minor influence with over 20% (20% included) voting rights hold:
AutoLink:
The Company holds 9.2837% equity of AutoLink and appointed a director to AutoLink. Though the representative the Company
can participate in the operation policies formulation of AutoLink and thus exercise a significant influence over AutoLink.
(2) Main financial information of important joint ventures
Other explanation: Nil
(3) Main financial information of important associated enterprises
In RMB
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Electronics Electronics
Current assets
3041695695.7412910623291.25119577141.223309330261.3313057353298.24156804165.22
Non -current assets
472221845.213547389964.659254084391.23417489997.173452708227.208276183030.91
Total assets 3513917540.95 16458013255.90 9373661532.45 3726820258.50 16510061525.44 8432987196.13
Current liabilities 1270209456.66 7011624627.65 14640927.97 1402974842.29 8401045934.29 7530191.60
Non-current
182387083.75169080572.937102848.04455453890.824983100.68
liabilities
Total liabilities 1452596540.41 7180705200.58 21743776.01 1858428733.11 8401045934.29 12513292.28
Net assets 2061321000.54 9277308055.32 9351917756.44 1868391525.39 8109015591.15 8420473903.85
Minority interests
Attributable to
parent company
2061321000.549277308055.329351917756.441868391525.398109015591.158420473903.85
shareholders’
equity
Share of net assets
calculated by 1010047290.27 3154284738.81 1870383551.29 915511847.44 2757065300.99 1684094780.77
shareholding ratio
Adjustment
matters
--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96
--Unrealized profit
-8111869.63-9546770.23
of internal trading
--Other -0.28 -0.28
Book value of
equity investment
1010047290.273413961630.251871790817.25915511847.443015307291.831685502046.73
in associated
enterprise
Fair value of
equity investment
for the affiliates
with consideration
publicly
Operation income 3823507561.86 11262081616.84 32829998.51 3925439987.43 13269586309.56 30337704.69
202WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Net profit 439225033.08 2720732465.47 2261333602.60 422428917.15 2994134912.69 2040443663.38
Net profit from
discontinued
operations
Other
comprehensive
income
Total
comprehensive 439225033.08 2720732465.47 2261333602.60 422428917.15 2994134912.69 2040443663.38
income
Dividends received
from associated
122500000.00527829600.44266000000.00117600000.001673605474.71282000000.00
enterprise in the
year
Other explanation
Adjustment item for other “-0.28”: the differential tail;
(4) Summary of financial information of insignificant joint ventures and associated enterprises
In RMB
Ending balance/Current period Opening balance/Last period
Joint venture:
Amount based on share-holding ratio
Associated enterprise:
Total book value of investment 739299140.82 331312321.07
Amount based on share-holding ratio
--Net profit -113113361.13 -22757873.48
--Total comprehensive income -113113361.13 -22757873.48
(5) Major limitation on capital transfer ability to the Company from joint venture or associated
enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or associated enterprise investment concerned
Nil
4. Major joint operation
Nil
203WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
5. Structured body excluding in consolidated financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil
6. Other
Nil
XI. Government grant
1. Government grant recognized at report ending in terms of amount receivable
□Applicable □Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable □Not applicable
2. Liabilities involved with government grant
□Applicable □Not applicable
In RMB
Amount
Current Other
booked into Amount carried
increase in changes in Asset/income
Entities Opening balance non-business forward to other Ending balance
government current related
income in income
grant period
current period
Deferred
95864426.07 13049446.20 35587040.62 73326831.65 Asset related
income
Deferred Asset/income
2913862.75205154.122708708.63
income related
Deferred
89995333.47 14449862.25 -161675.76 75383795.46 Income related
income
Total 188773622.29 13049446.20 50242056.99 -161675.76 151419335.74
3. Government grant booked into current gains/losses
□Applicable □Not applicable
In RMB
Accounting title Current period Last period
Other revenue 84356626.01 75786785.30
Total 84356626.01 75786785.30
Other explanation: Nil
XII. Risk related to financial instruments
1. Risks from financial instruments
Main financial instrument of the Company including monetary funds structured deposits account receivable equity instrument
204WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
investment financial products loans and account payable etc. more details of the financial instrument can be found in relevant
items of Note VII. Risks concerned with the above-mentioned financial instrument and the 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 adverse impact on
performance of the Company to minimum standards and maximized the benefit for shareholders and other investors. Base on the
risk management targets the basic tactics of the risk management is to recognized and analyzed the vary risks that the Company
counted established an appropriate risk exposure baseline and caring risk management 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 including credit exposure
market risk and liquidity risk. BOD of the Company takes full charge of the risk management target and policy-making and takes
ultimate responsibility for the target of risk management and policy. Compliance department and financial control department
manager and monitor those risk exposures to ensuring the risks are control in a limited range.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
other account receivables. The management has established an appropriate 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 such as commercial
banks the management believes that these commercial banks have higher credit and asset status and have 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 the credit risk exposure.To prevent the risks the company has formulated a new customer credit evaluation system and an existing customer credit sales
balance analysis system. The new customer credit evaluation system aims at new customers the company will investigate a
customer’s background according to the established process to determine whether to give the customer a credit line and the credit line
size and credit period. Accordingly the company has set a credit limit and a credit period for each customer which is the maximum
amount that does not require additional approval. The analysis system for credit sales balance of existing customers means that after
receiving a purchase order from an existing customer the company will check the order amount and the balance of the accounts
owed by the customer so far if the total of the two exceeds the credit limit of the customer the company can only sell to the customer
on the premise of additional approval otherwise the customer must be required to pay the corresponding amount in advance. In
addition for the credit sales that have occurred the company analyzes and audits the monthly statements for risk warning of accounts
receivable to ensure that the company’s overall credit risk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance sheet.Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to fluctuations in the
market price changes and produce mainly includes the IRR FX risk and other price risk.Interest rate risk
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 in line with the anticipative
change orientation choose floating rate or fixed rate that is the rate in future period will goes up prospectively then choose fixed
rate; if the rate in future period will decline prospectively then choose the floating rate. In order to minor the bad impact from
difference between the expectation and real condition loans for liquid funds of the Company are choose the short-term period and
agreed the terms of prepayment in particular.Foreign exchange risk
205WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly related with the USD
EUR SF JPY HKD DKK except for the USD EUR SF JPY HKD and DKK carried out for the equipment purchasing of parent
company and WFAS material purchasing of parent company technical service and trademark usage costs of parent company the
import and export of WFTR operation of IRD operation of Borit and operation of VHIO and other main business of the Company
are pricing and settle with RMB (yuan). As the foreign financial assets and liabilities takes minor ratio in total assets the Company
has small FX risk of the financial instrument considered by management of the Company.End as December 31 2024 except for the follow assets or liabilities listed with foreign currency assets and liabilities of the
Company are carried with RMB.Foreign currency assets of the Company till end of December 31 2024:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets (%)
currency balance converted
Monetary funds
Including: USD 13873061.05 7.1884 99725112.05 0.35
EUR 24499290.32 7.5257 184374309.16 0.65
HKD 11187803.18 0.9260 10359905.74 0.04
JPY 14894687.00 0.0462 688134.54 --
DKK 79733081.38 1.0084 80402839.26 0.28
Account receivable
Including: USD 2522502.37 7.1884 18132756.04 0.06
EUR 21972089.70 7.5257 165355355.46 0.58
DKK 8300064.81 1.0084 8369785.35 0.03
Other account receivables
Including: EUR 471259.96 7.5257 3546561.08 0.01
DKK 4816845.70 1.0084 4857307.20 0.02
Total ratio in assets 2.02
Foreign currency liability of the Company till end of December 31 2024:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
Account payable
Including: USD 727116.62 7.1884 5226805.11 0.07
EUR 38692560.51 7.5257 291188602.63 3.69
JPY 39079396.00 0.0462 1805468.10 0.02
DKK 37002959.39 1.0084 37313784.25 0.47
CHF 233207.55 7.9977 1865124.02 0.02
Other account payable
Including: EUR 1442348.18 7.5257 10854679.70 0.14
DKK 896659.28 1.0084 904191.22 0.01
Non-current liabilities due
within one year
Including: USD 168350.65 7.1884 1210171.81 0.02
EUR 913722.70 7.5257 6876402.92 0.09
DKK 2192818.85 1.0084 2211238.53 0.03
Leasing liabilities
Including USD 225599.53 7.1884 1621699.66 0.02
206WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
EUR 3404995.75 7.5257 25624976.52 0.32
DKK 19225943.38 1.0084 19387441.30 0.25
Total ratio in liabilities 5.15
Other pricing risk
The equity instrument investment held by the Company with classification as transaction financial asset and other non-current
financial assets are measured on fair value of the balance sheet date. The fluctuation of expected price for these investments will
affect the gains/losses of fair value changes for the Company.Furthermore on the premise of deliberated and approved in 8th meeting of 10th session of the BOD the Company exercise entrust
financing with the self-owned idle capital; therefore the Company has the risks of collecting no principal due to entrust financial
products default. Aims at such risk the Company formulated the Management Mechanism of Capital Financing and well-defined
the authority to entrust financial management audit process reporting system Choice of trustee daily monitoring and verification
and investigation of responsibility etc. In order to lower the adverse impact from unpredictable factors the Company choose short-
term and medium period for investment and investment product’s term is up to 5 years in principle; The variety of investment
includes bank financial products trust plans of trust companies asset management plans of asset management companies various
products issued by securities companies fund companies and insurance companies etc.Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the enterprise in way of cash
paid or other financial assets. The Company aims at guarantee the Company has rich capital to pay the due debts therefore a
financial control department is established for collectively controlling such risks. On the one hand the financial control department
monitoring the cash balance the marketable securities which can be converted into cash at any time and the rolling forecast on cash
flow in future 12 months ensuring the Company on condition of reasonable prediction owes rich capital to paid the debts; on the
other hand building a favorable relationship with the banks rationally design the line of credit credit products and credit terms
guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing requirements.
2. Hedge
(1) Risk management for hedge business
□Applicable □Not applicable
(2) The company conducts eligible hedging business and applies hedging accounting
Nil
(3) The company conducts hedging business for risk management purposes and expects to achieve the
risk management objectives but has not applied hedging accounting.□Applicable □Not applicable
3. Financial assets
(1) By transfer manner
□Applicable □Not applicable
207WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In RMB
Amount of
Transfer Derecognized Judgment basis for
Nature of transferred financial assets transferred financial
method or not derecognition
asset
Bank acceptance bills in accounts Almost all of its risks and
Bill
receivable financing that have not yet 240728655.13 Derecognized rewards have been
endorsement
matured transferred
Bank acceptance bills in accounts Almost all of its risks and
Bill
receivable financing that have not yet 391089658.92 Derecognized rewards have been
discounting
matured transferred
Assignment Almost all of its risks and
Assignment of accounts receivable
of accounts 6340800.00 Derecognized rewards have been
without recourse
receivable transferred
Total 638159114.05
(2) Financial assets derecognized due to assignment
□Applicable □Not applicable
In RMB
Methods of transferring Amount of derecognized Gains/losses related to de-
Item
financial assets financial assets recognition
Accounts receivable financing Bill endorsement 240728655.13
Accounts receivable financing Bill discounting 391089658.92 3439527.22
Accounts receivable Assignment of credit 6340800.00 3651225.00
Total 638159114.05 7090752.22
(3) Financial assets which are assigned and involved continuously
□Applicable □Not applicable
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured at fair value
In RMB
Ending fair value
Item
First level Second level Third level Total
I. Sustaining measured at fair value -- -- -- --
(1) Trading financial assets
1. Financial assets measured at fair value and
whose changes are included in current profit 10501800.00 1419180835.57 1429682635.57
or loss
(1) Investment in equity instrument 10501800.00 10501800.00
(2) Investment in other liability
1419180835.571419180835.57
instruments and equity instrument
(2) Other non-current financial assets
1. Financial assets designated to be measured
747471349.81747471349.81
at fair value and whose changes are included
208WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
in current profit or loss
(1) Investment in equity instrument 747471349.81 747471349.81
(3)Receivable financing
1. Financial assets measured at fair value and
whose changes are included in other 1713187182.25 1713187182.25
comprehensive income
(4)Other equity instrument investment
1. Financial assets measured at fair value and
whose changes are included in current 677790690.00 677790690.00
gains/losses
Total amount of assets measured at fair value
10501800.004557630057.634568131857.63
on an ongoing basis
II. non-persistent measure of fair value -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured at fair value on first
level
On December 31 2024 the financial assets available for sale equity instrument investments held by the Company Miracle
Automation (Stock code: 002009). The fair value at the end of the period is determined at the closing price as of December 31
2024.
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second level
(1) Financing of receivable
For this portion of financial assets the company uses the discounted cash flow valuation technique to determine their fair value.Among them the important unobservable input values mainly include the discount rate the maturity period of the contractual cash
flows etc. For the cash flows with a contractual maturity period within 12 months (inclusive) no discounting is carried out and
the cost is taken as their fair value.
(2) Investments in other equity instruments
For this portion of financial assets due to the lack of market liquidity the company uses the replacement cost method to determine
their fair value. Among them the important unobservable input values mainly include the financial data of the invested company
etc.
(3) Investments in other debt instruments and equity instruments
For this portion of financial assets the company uses the valuation technique of discounted cash flows to determine them. Among
them the important unobservable input values mainly include the expected annualized rate of return the risk coefficient etc.
4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third level
Nil
5. Continuous third-level fair value measurement items adjustment information between the opening
and closing book value and sensitivity analysis of unobservable parameters
Nil
209WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
6. Continuous fair value measurement items if there is a conversion between various levels in the current
period the reasons for the conversion and the policy for determining the timing of the conversion
Nil
7. Changes in valuation technology during the current period and reasons for the changes
Nil
8. The fair value of financial assets and financial liabilities not measured by fair value
Nil
9. Other
Nil
XIV. Related party and related party transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Wuxi Industry Operation of state-
Wuxi 6008531000.00 21.25% 21.25%
Group owned assets
Explanation of the Parent Company's Shareholding Ratio in the Company
As of December 31 2024 Wuxi Industrial Group held a 21.25% stake in the company. By February 21 2025 Wuxi Industrial
Group cumulatively acquired an additional 3859501 A-shares of the company through centralized bidding on the Shenzhen Stock
Exchange representing 0.38% of the company’s total equity. Following this shareholding increase Wuxi Industrial Group now
holds 213202199 A-shares of the company with its total stake rising to 21.38%.Explanation on parent company of the company
Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own assets house leasing services self-operating and acting
as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are
restricted by the state or prohibited for import and export) domestic trade (excluding national restricted and prohibited items).(Projects that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).Ultimate controller of the Company is the State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.Other explanation: Nil
2. Subsidiary of the Company
For more details of the Company’s subsidiaries please refer to X. 1(1). Equity in subsidiary.
210WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
3. Joint venture and associated enterprise
For more details please refer to Note X. 3. Equity in Joint Venture and Associated Enterprises.Other associated enterprises or joint ventures which have related transaction with the Company in the current period or previous
periods: Nil
4. Other related party
Other related party Relationship with the Company
Robert Bosch Company Second largest shareholder of the Company
Guokai Metals Enterprise controlled by the parent company
Urban Public Distribution Enterprise controlled by the parent company
FAILCONTECH Enterprise controlled by the parent company
Jiangsu Huilian Aluminum Industry Co. Ltd. (hereinafter
Enterprise controlled by the parent company
referred to as “Huilian Aluminum Industry”)
Wuxi IoT Innovation Center Co. Ltd. (hereinafter referred to as
Enterprise controlled by the parent company
“Wuxi IoT”)
Hebei Machinery Import and Export Co. Ltd. (hereinafter Controlled by affiliated parties of our company’s former
referred to as “Hebei Machinery”) directors/senior management
Hebei Deshuang Trade Co. Ltd (hereinafter referred to as
Company controlled by Hebei Machinery
“Hebei Deshuang”)
Hebei Jinda Import and Export Co. Ltd. (hereinafter referred to
Company controlled by Hebei Machinery
as “Hebei Jinda”)
Hebei Lanpai Technology Co. Ltd. (hereinafter referred to as
Company controlled by Hebei Machinery
“Hebei Lanpai”)
Hebei Mianzhuo Mechanical and Electrical Equipment Sales
Company controlled by Hebei MachineryCo. Ltd. (hereinafter referred to as “Hebei Mianzhuo)Jiangsu Wuxi National Grain Reserve Depot Co. Ltd.Enterprise controlled by the parent company
(hereinafter referred to as “Wuxi Grain Depot”)Wuxi Security Service Co. Ltd. (hereinafter referred to as “WuxiEnterprise controlled by the parent companySecurity”)
Eleventh Design and Research Institute of Information Industry
Enterprise directly or indirectly controlled by Taiji Industry Co.Electronic Science and Technology Engineering Co. Ltd.Ltd. Fang Tao a related natural person of the company serves as(hereinafter referred to as the “Eleventh Institute of Science andTechnology”) the chairman and Li Jiayi serves as a director.Key management Directors supervisors and senior executives of the company
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Content of Whether more than
Approved
Related party related Current period the transaction limit Last Period
transaction limit
transaction (Y/N)
WFEC Goods and labor 800690587.70 1198000000.00 N 955325713.19
RBCD Goods and labor 254181294.44 313000000.00 N 266965044.36
Robert Bosch Company Goods and labor 245990950.13 222000000.00 Y 199404542.49
WFPM Goods and labor 33594562.90 45000000.00 N 41669848.47
FAILCONTECH Goods and labor 77747.81 Y 50600.00
Eleventh Institute of
Goods and labor 71698.12 Y
Science and Technology
Wuxi Security Goods and labor 3362.26 Y
211WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
GuokaiMetals Goods and labor 15867033.58
Huilian Aluminum Goods and labor
515250.00
Industry
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current period Last Period
Robert Bosch Company Goods and labor 2078120537.08 1868727976.48
RBCD Goods and labor 1352740802.27 1673734280.25
Lezhuo Bowei Goods and labor 10940310.56 9695369.27
Changchun Xuyang Goods and labor 5761578.80 1011193.02
WFPM Goods and labor 1201055.62 532192.80
WFEC Goods and labor 550946.52 7290384.61
WuXi ZW Goods and labor 113776.50
Wuxi Grain Depot Goods and labor 214601.77
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/ outsourcing
Nil
(3) Related lease
The company as lessor:
In RMB
Lease income recognized in Lease income recognized at
Lessee Assets type
the Period last Period
WFEC Workshop 2006634.05 2006634.03
Robert Bosch Company Equipment 38532.00
RBCD Parking lost 499200.00 234000.00
Lezhuo Bowei Workshop and equipment 3148672.50 2715935.47
Explanation on related lease
WFLD entered into a house leasing contract with WFEC. The plant locating at No.9 Linjiang Road Wuxi Xinwu District owed
by WFLD was rented out to WFEC. WFLD recognized that the rental income in the year of 2024 was 2006634.05 yuan.WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leases a portion of WFJN’s plant located at No. 12
Liuzhou North Road Pukou District Nanjing City. The lease term is from January 1 2024 to December 31 2024. WFJN has
confirmed the rental income of 2875072.50 yuan for the year 2024; Lezhuo Bowei also rented some equipment from WFJN and
WFJN confirmed equipment rental income of 273600.00 yuan in 2024.The company as lessee:
Simplified
Variable lease
handling of rental
payment not
expenses for short- Interest expenses on
Types included in the Increased right of
term leases and Rent paid lease liabilities
Name of of measurement of use assets
low value asset undertaken
lessor leased lease liabilities (if
leases (if
assets applicable)
applicable)
Current Last Current Last Current Last Current Last Current Last
amount amount amount amount amount amount amount amount amount amount
Wuxi Houses
269820
AautoLink and
0.00
Intelligent equipm
212WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Manufactur ent
ing Co. Ltd
Explanation on related leasing:
WFSS signed a lease contract with Wuxi AutoLink Intelligent Manufacturing Co. Ltd. The latter leased as a whole package its
property located at No. 8 Huayun Road Wuxi City (including workshops parking lots and supporting office furniture facilities
equipment etc.) to WFSS. The lease term is from June 1 2024 to May 31 2026. Based on this WFSS recognized the property lease
expenses of RMB 2698200.00 for the period from June to December 2024.
(4) Connected guarantee
The company as guarantor
In RMB
Guarantee Has the guarantee been
Guarantee Guarantee amount Guarantee start date
expiration date fully fulfilled
VHWX 10000000.00 2022-12-12 No
VHIO 77840000.00 2023-07-18 No
VHIO 53090000.00 2023-07-18 No
VHIO 307060000.00 2024-04-09 No
Explanation on related - party guarantees:
* The Company shall assume the guarantee liability for all the debts (including the principal creditor's rights and the interests
thereon liquidated damages damages for losses and the expenses for realizing the creditor's rights) under the sales contract signed
between our wholly-owned subsidiary VHWX and Shenzhen BYD Supply Chain Management Co. Ltd. with the total guarantee
amount not exceeding RMB 10 million. The guarantee period shall be from the date of signing of the main contract to two years after
the expiration date of the performance period of the debts under the main contract or until December 30 2026 (including that day)
(whichever of the two aforementioned dates comes earlier).* The Company provides three guarantees for VHIO a wholly-owned subsidiary. The details are as follows: On July 18 2023 a
guarantee amount of RMB 77.84 million was provided. The guarantee period is three years from the date when the Italian tax
authority accepts the guarantee letter. On November 16 2023 a guarantee amount of RMB 53.09 million was provided. The
guarantee period is six months from the maturity date of each guaranteed debt but not later than June 30 2028. On April 9 2024 a
guarantee amount of RMB 307.06 million was provided. The guarantee period is two years from the date when VHIO fulfills all its
obligations to suppliers or when it meets the indicator requirements stipulated in the letter of guarantee.
(5) Related party’s borrowed/lending funds
Nil
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key management
In ten thousand yuan
Item Current period Last period
213WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Remuneration of key manager 10790000.00 6620000.00
(8) Associated transaction of “Platform trade”
Current period Last period
Name of associated
party Sales income received Purchase payment paid Sales income received Purchase payment paid
Hebei Machinery -- -- -- --
Hebei Jinda -- -- -- -56753804.02
Hebei Deshuang -- -- -- --
Hebei Lanpai -- -- -- --
Hebei Mianzhuo -- -- -- --
Total -- -- -- -56753804.02
Other explanations: Due to being jointly controlled by Hebei Machinery and based on the essence of the "platform trade"
business WFTR presents the difference between the "purchase payments" paid to Hebei Jinda Hebei Deshuang Hebei Lanpai and
Hebei Mianzhuo in the "platform trade" business and the "sales income" received from Hebei Machinery as other receivables.
(9) Other related transactions
In RMB
Related party Contents of item Current period Last Period
WFPM Purchase of fixed assets 3000.00 186000.00
RBCD Purchase of fixed assets -- 283185.85
Robert Bosch Company Payable for technical services 193000.00 --
Robert Bosch Company Technology royalties paid etc. 2724741.59 2517526.28
Robert Bosch Company Purchase of fixed assets 9212449.26 20337308.56
Robert Bosch Company Sales of fixed assets 2774443.00 10066665.81
Robert Bosch Company Providing of technical services etc. -- 2601403.49
Urban public distribution Purchase cafeteria ingredients 2470675.30 2074056.16
Wuxi Industry Group Providing of technology service etc. 752122.64 160613.21
WFEC Payable for technical services 589056.60 33396.23
WFEC Utilities payable 1125244.70 1217617.88
WFEC Providing of technology service etc. 641320.75 --
WFEC Sales of fixed assets -- 253046.93
Eleventh Institute of Science
Purchase canteen ingredients etc 25471.70 --
and Technology
Lezhuo Bowei Providing of technology service etc. 82722.27 110344.34
Wuxi IOT Purchase of fixed assets 68867.93 602233.50
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Item Related party Ending balance Opening balance
214WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Bad debt Bad debt
Book balance Book balance
reserve reserve
Account
WFPM 253087.10 170770.59
receivable
Account
RBCD 807220878.29 3096153.84 686424501.80 1017817.82
receivable
Account
Robert Bosch Company 638685114.08 1347705.10 596846772.56 782592.70
receivable
Account
Lezhuo Bowei 5234363.76 0.03 3520841.22
receivable
Account
WFEC 2599809.56 1787498.57
receivable
Account
Changchun Xuyang 9644850.41 220134.29
receivable
Account
Wuxi Grain Depot 242500.00
receivable
Other account
Robert Bosch Company 2885068.34 225599.82 2500307.00
receivable
Other non-current Wuxi AutoLink Intelligent
449700.00
assets Manufacturing Co. Ltd.Dividends WFPM
5357758.49
receivable
Prepayments Robert Bosch Company 10933876.91
Other non-current Robert Bosch Company
7513200.00470000.00
assets
Other non-current Wuxi Industry Group
5452800.005452800.00
assets
Total 1496473006.94 4669458.79 1297393626.03 1800410.52
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Account payable WFPM 7803153.23 15511126.97
Account payable WFEC 581475733.94 480670597.42
Account payable RBCD 67673428.74 49028994.76
Account payable Robert Bosch Company 28113764.28 18947846.60
Account payable Autolink 1478079.00
Account payable Eleven Technology Co. Ltd. 46000.00
Other current liabilities RBCD 0.05 0.05
Other account payable WFEC 9859.30
Contract liability WFPM 26394.04
Contract liability WFPM 29000.00 29000.00
Contract liability Robert Bosch Company 41380.29
Contract liability WFPM 203031.12
Other current liabilities RBCD 0.36 0.36
Other current liabilities Robert Bosch Company 325299.33 6986398.10
Other current liabilities WFEC 75840.73
Rent liability Wuxi AutoLink Intelligent
2228404.32
Manufacturing Co. Ltd.Total 689529368.73 571173964.26
215WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(3) Related claims of “platform trade” business
In RMB
Item Related party Ending balance Opening balance
Other receivables Hebei Machinery -2125487770.72 -2125487770.72
Other receivables Hebei Jinda 1958470484.57 1958470484.57
Other receivables Hebei Deshuang 1436757179.96 1436757179.96
Other receivables Hebei Lanpai 609404930.22 609404930.22
Other receivables Hebei Mianzhuo 479253260.75 479253260.75
Total 2358398084.78 2358398084.78
Note: Due to being jointly controlled by Hebei Machinery and based on the essence of the "platform trade" business WFTR
presented the difference of RMB 2358398084.78 between the "purchase payments" made to Hebei Jinda Hebei Deshuang Hebei
Lanpai and Hebei Mianzhuo in the "platform trade" business and the "sales income" received from Hebei Machinery as other
receivables. As of December 31 2024 the balance of the bad debt provision made by the company for the balance of these other
receivables was RMB 1448358922.04. This balance of the bad debt provision was calculated by the company. It was obtained by
multiplying the proportion of 88.10% (the balance of other receivables of Hebei Machinery and the companies it controls which was
RMB 2415151888.80 as of December 31 2022 accounting for the balance of other receivables of the "platform trade" business
portfolio of WFTR which was RMB 2741499131.95 as of December 31 2022) by the bad debt provision of RMB
1644068327.93 made for the balance of other receivables of the "platform trade" business portfolio of WFTR.
7. Undertakings of related party
Nil
8. Other
Nil
XV. Share-based payment
1. Overall situation of share-based payment
□Applicable □Not applicable
In RMB
Granted in current Executed in current Unlocked in current
Category of Expired in current period period period period
grant object
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Sales staff 4275300.00 111585330.00
Administrative
216300.005645430.00
staff
R&D staff 180000.00 4698000.00
Production staff 504900.00 13177890.00
Total 5176500.00 135106650.00
Stock options or other equity instruments issued to the public at the end of the period
216WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
□Applicable □Not applicable
Other explanation: Nil
2. Share-based payment settled by equity
□Applicable □Not applicable
In RMB
Method for determining the fair value of equity instruments on the grant Determine based on the closing price of the
date 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
Not applicable
period and estimate in the prior period
Cumulative amount of equity-settled share-based payments included in the
81051840.00
capital reserve
Total amount of expenses confirmed by equity-settled share-based
0.00
payments in the current period
3. Share-based payment settled by cash
□ Applicable □ Not applicable
4. Current share-based payment expenses
□Applicable ?Not applicable
5. Modification and termination of share-based payment
Nil
6. Other
Nil
XVI. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date
Nil
2. Contingency
(1) For the important contingency unnecessary to disclosed by the Company explained reasons
1. Contingent liabilities formed by providing debt guarantees for other entities and their financial impacts
Guarantee for subsidiary: As of December 31 2024 the Company provided a guarantee for all debts arising from the performance
of contracts by its subsidiary VHWX and Shenzhen BYD Supply Chain Management Co. Ltd. with the guaranteed amount being
RMB 10 million.
217WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
As of December 31 2024 the Company provided a guarantee amount of RMB 717.99 million to its grand-subsidiary VHIO. The
scope of the guarantee includes but is not limited to financing-related guarantees arising from the application for financing
businesses (including businesses such as loans bank acceptance bills foreign exchange derivative transactions letters of credit
guarantee letters etc.) and performance-related guarantees occurring in daily operations.
2. Other contingent liabilities and their financial impacts
The Company has no other significant contingent matters that require disclosure.
(2) Other information required by the Guidelines for Information Disclosure of Automobile
Manufacturing Related Industries
The Company need to comply with the disclosure requirement on related industry of automobile manufacturing in the Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
Mortgage sales financial leasing and other models of sales accounted for more than 10% of operating income
□ Applicable □ Not applicable
The company’s guarantee to the dealer
□ Applicable □ Not applicable
3. Other
Nil
XVII. Undertakings or contingency
1. Important undertakings
In RMB
Impact on financial condition Reason for the inability to estimate
Item Content
and operating results the number of impacts
Issuance of stocks and bonds Nil Nil Nil
Major external investment Nil Nil Nil
Major debt restructuring Nil Nil Nil
Natural calamities Nil Nil Nil
Significant changes in foreign
Nil Nil Nil
exchange rates
2. Profit distribution
Cash dividends for every 10 shares proposed to be distributed (yuan) 9
Share bonus for every 10 shares proposed to be distributed (shares) 0
Transfer of capital reserve into share capital (per10 shares) proposed 0
Cash dividends for every 10 shares declared to be distributed(yuan) 9
Share bonus for every 10 shares declared to be distributed (shares) 0
Transfer of capital reserve into share capital (per 10 shares) approved 0
Based on the latest total share capital of the company
(996986293 shares) excluding the number of A-shares
Profit distribution plan
held in the company's repurchase special account
(25000000 shares) (971986293 shares) (according to the
218WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
provisions of the Company Law listed companies do not
have the right to participate in profit distribution and
capital reserve conversion into share capital by
repurchasing the company's shares held in the special
securities account) a cash dividend of RMB9.00
(including tax) will be distributed for every 10 shares
without bonus shares or capital reserve conversion into
share capital. The remaining undistributed profits will be
carried forward to the next year. The total planned cash
dividend for this round is 874787663.70 yuan (including
tax). If there is a change in the total share capital of the
company before the implementation of the distribution
plan the company will distribute according to the principle
of unchanged distribution ratio and adjusted total
distribution amount. The profit distribution plan still needs
to be submitted for review at the 2024 Annual
Shareholders' Meeting.
3. Return of sales
Nil
4. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors correction
(1) Retrospective restatement
Nil
(2) Prospective application
Nil
2. Debt restructuring
Nil
3. Asset replacement
(1) Non-monetary asset replacement
Nil
(2) Other asset replacement
Nil
219WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th meeting of 7th session of the BOD: in
order 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 annuity plan since the date of reply
of plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid by the
enterprise and employees together; the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the
enterprise per year the combined contribution of the enterprise and the individual employee shall not exceed 12% of the tota l salary
of the employees of the enterprise. In accordance with the State’s annuity policy the Company will adjusted the economic benefits in
due time in principle of responding to the economic strength of the enterprise the amount paid by the enterprise at current period
control in the 8% of the total salary of last year the maximum annual allocation to employees shall not exceed five times the 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 adjusted correspondingly in line with the operation
condition of the Company.In December 2012 the Company received the Reply on annuity plans reporting under the name of WFHT from labor security
administration department later the Company entered into the Entrusted Management Contract of the 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 and internal report ing
system. Operating segment of the Company refers to the followed components that have been satisfied at the same time:
* The component is able to generate revenues and expenses in routine activities;
* Management of the Company is able to assess the operation results regularly and determine resources allocation and performance
evaluation for the component;
* Being analyzed financial status operation results and cash flow of the components are able to require by the Company
If two or more operating segments have similar economic characteristics and meet certain conditions they can be merged into one
operating segment.The company considers the principle of importance and determines the reporting segments based on the operating segments. The
reporting segment of the company is a business unit that provides different products or services or operates in different regions. Due
to the need for different technologies and market strategies in various businesses or regions the company independently manages the
production and operation activities of each reporting segment evaluates their operating results individually and decides to allocate
resources to them and evaluate their performance. The company mainly produces products related to automotive internal combustion
engine fuel systems fuel cell components automotive parts mufflers purifiers vacuum and hydraulic pumps etc. The company
determines the reporting segments based on the products or service content. However due to the mixed operation of related
businesses the total assets total liabilities and period expenses have not been allocated.
220WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(2) Financial information for reportable segment
In RMB
Other
Automotive Air Offsetting
Automotive fuel automotive
Item post processing management between Total
injection system components
system segment system segment segments
segment
3517753858.1937957952.
Revenue 4745041198.46 966510146.42 11167263155.85
5146
2963329763.1797522161.
Cost 3614346636.50 761968455.28 9137167016.39
5110
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of
each reportable segment it should state the reasons
The company is mainly devoted to producing automotive internal combustion engine fuel system products automotive components
muffler purifier vacuum and hydraulic pump and other related products. It determines the reporting segments based on product or
service contents but due to the mixed operation of related businesses the total assets total liabilities and period expenses have not
been allocated.
(4) Other explanations
Nil
7. Major transaction and events influencing investor’s decision
(1) In March 2023 the Company reported the contract fraud case involving our subsidiary WFTR to the Xinwu Branch of the
Wuxi Public Security Bureau. On April 12 2023 the Xinwu Branch of the Wuxi Public Security Bureau issued a "Case Filing
Notification" and launched a criminal investigation into the contract fraud that occurred during the process of Wufu International
Trade's "platform trade" business (for details please refer to the company's Announcement No. 2023-007 disclosed on April 13
2023 on information disclosure websites such as the Chinaclear Information Network). The case has gone through stages such as
investigation prosecution and trial. In April 2025 the Company received the "Criminal Judgment" ((2024) Su 02 Xing Chu 22)
served by the Intermediate People's Court of Wuxi City Jiangsu Province. The Intermediate People's Court of Wuxi City Jiangsu
Province heard the case in which the Wuxi People's Procuratorate accused the defendant Liu of the crime of contract fraud. On
April 11 2025 the first-instance judgment was made convicting the defendant Liu of the crime of contract fraud and the property
seized sealed and frozen in the case shall be handled by the public security organs in accordance with the law.
(2) Based on the "platform trade" business’s background transaction chain sales and purchase contract signing transaction
process physical flow and so on the company carefully analyzed and made comprehensive judgment finds that the probability of
this business not belonging to normal trade business is extremely high. In terms of accounting treatment the company follows the
principle of substance over form and does not treat it as normal trade business but according to the receipt and payment of funds
prudently counts as claims and liabilities respectively purchases actually paid to "suppliers" and sales collected from "customers"
Other receivables are reported on a net basis in the financial statements as a "platform trading" portfolio. As of December 31 2024
the balance of the “Platform Trade” business portfolio was RMB2542263400 yuan and an expected credit loss of
RMB1644068300.00 has been provisioned. Based on the comprehensive judgment of information from authorized departments
the company has determined that there has been no significant change in the recoverable amount of debt in the “platform trade”
business portfolio and there is no need for further provision or significant reversal of expected credit losses.
221WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
8. Other
Nil
XIX. Principal notes of financial statements of parent company
1. Account receivable
(1) By account aging
In RMB
Aging Ending book balance Beginning book balance
Within one year(inclusive) 1482006067.41 1376943595.48
Including: within six months 1460455344.98 1365664197.96
Six months to one year 21550722.43 11279397.52
1-2 years 6409424.43 9348871.78
2-3 years 8408261.89 732334.63
Over three years 1242046.26 6457957.26
3 - 4 years 546653.26 1522747.95
4 - 5 years 583255.45 101188.83
Over 5 years 112137.55 4834020.48
Total 1498065799.99 1393482759.15
(2) Accrued of bad debt reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debt reserve Book balance Bad debt reserve Book Book
Accrued Accrued
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Account receivable
with bad debt 1439571 1439571 4774540 4774540
0.10%100.00%0.34%100.00%
reserve accrued on .54 .54 .26 .26
a single basis
Including:
Account receivable
with bad debt 1496626 6690538 1489935 1388708 4648838 1384059
99.90%0.45%99.66%0.33%
reserve accrued on 228.45 .40 690.05 218.89 .01 380.88
portfolio
Including:
Including:
133126566905381324575121985746488381215208
receivables from 88.87% 0.50% 87.54% 0.38%
647.15.40108.75129.33.01291.32
customers
Receivables from
1653605165360516885101688510
internal related 11.04% 12.12%
81.3081.3089.5689.56
parties
149806581301091489935139348294233781384059
Total 100.00% 100.00%
799.99.94690.05759.15.27380.88
Bad debt reserve accrued on single basis: 1439571.54
In RMB
222WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
Beginning balance Ending balance
Name Book Bad debt Book Bad debt Accrued
Accrued causes
balance reserve balance reserve ratio
SAIC HONGYAN Have difficulty in
935626.30935626.30100.00%
Automotive Co. Ltd collection
Tianjin Leiwo Engine Co. Have difficulty in
503945.24503945.24503945.24503945.24100.00%
Ltd. collection
BD bills 4270595.02 4270595.02
Total 4774540.26 4774540.26 1439571.54 1439571.54
Bad debt reserve accrued on portfolio: 6690538.40
In RMB
Ending balance
Name
Book balance Bad debt reserve Accurual ratio
Within 6 months 1299653216.02
6 months to one year 19040810.06 1904081.00 10.00%
1-2 years 3425258.16 685051.63 20.00%
2-3 years 8408261.89 3363304.75 40.00%
Over 3 years 738101.02 738101.02 100.00%
Total 1331265647.15 6690538.40
Explanation on determining the basis of this portfolio:
* In the portfolio accounts receivable from internal related parties:
In RMB
Name of related party Amount Ratio of bad debt reserve (%)
WFTR 66062548.94 --
WFSC 44309810.50 --
WFSS 24029089.51 --
VHWX 24573198.62 --
WFTT 3962004.48 --
WFQL 2420516.65 --
WFAS 3412.60 --
Total 165360581.30 --
If the provision for bad debts of accounts receivable is made according to the general model of expected credit losses:
□Applicable □Not applicable
(3) Bad debt reserve accrued collected or reversal
Bad debt reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrued Written-off Other
reversal
Accrued on single
4774540.26935626.304270595.021439571.54
basis
Accrued on portfolio 4648838.01 2041700.39 6690538.40
Total 9423378.27 2977326.69 4270595.02 8130109.94
Important bad debt reserve collected or reversal：Nil
223WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(4) Account receivable charged off in the Period
Nil
(5) Top 5 receivables and contract assets at ending balance by arrears party
In RMB
Ending Ratio in total ending Ending balance of bad
Ending balance of
Ending balance of balance of balance of account debt reserve and
Name account receivable and
account receivable contract receivable and impairment reserve of
contract assets
assets contract assets contract assets
RBCD 807220878.29 807220878.29 53.88% 3096153.84
Robert
Bosch 255800409.73 255800409.73 17.08% 1107994.46
Company
Client 3 88287995.25 88287995.25 5.89% 3721.12
WFTR 66062548.94 66062548.94 4.41%
WFSC 44309810.50 44309810.50 2.96%
Total 1261681642.71 1261681642.71 84.22% 4207869.42
2.Other accounts receivable
In RMB
Item Ending balance Opening balance
Interest receivable 6702396.94 842323.12
Dividends receivable 5357758.49
Other account receivables 1417306880.03 1369807069.16
Total 1429367035.46 1370649392.28
(1) Interest receivable
1) Category of interest receivable
In RMB
Item Ending balance Opening balance
Interest receivable of subsidiary 6702396.94 842323.12
Total 6702396.94 842323.12
2) Significant overdue interest
Other explanation: Nil
3) Accrued bad debt reserve
□Applicable □Not applicable
224WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
4) Bad debt reserve accrued collected or reversal
Nil
5) Interest receivable charged off during the reporting period
Nil
(2) Dividends receivable
1) Category of dividends receivable
In RMB
Investee Ending balance Opening balance
WFPM 5357758.49
Total 5357758.49
2) Important dividends receivable with account age over one year
Nil
3) Accrued bad debt reserve
□Applicable □Not applicable
4) Bad debt reserve accrued collected or reversal
Nil
5) Dividends receivable charged off during the reporting period
(3) Other account receivable
1) Other account receivables classification by nature
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 330080.00 520080.00
Balance of related party in the
3051023208.993006132546.93
consolidate scope
Margin 3097870.78 3920799.33
Social security and provident fund paid 6199417.67 6119110.70
Other 3051521.21 371066.21
Total 3063702098.65 3017063603.17
225WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
2) By account age
In RMB
Account age Ending book balance Beginning book balance
Within one year (One year included) 216098598.61 365322657.63
Including: within 6 months 38421387.82 134688758.70
6 months to one year 177677210.79 230633898.93
1-2 years 279688422.50 2648713049.33
2-3 years 2566161181.33 218000.00
Over 3 years 1753896.21 2809896.21
3-4 years 50000.00 2794070.00
4-5 years 1688070.00 8626.21
Over five years 15826.21 7200.00
Total 3063702098.65 3017063603.17
3) Accrued of bad debt reserve
Provision for bad debt reserve based on the general model of expected credit losses:
In RMB
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit the entire duration the entire duration (with Total
losses over next
(without credit credit impairment
12 months
impairment occurred) occurred)
Balance of Jan. 1 2024 3188206.08 1644068327.93 1647256534.01
Balance of Jan. 1 2024 in the
period
Current accrual 274166.89 274166.89
Current reversal 1135482.28 1135482.28
Balance on Dec. 31 2024 2326890.69 1644068327.93 1646395218.62
Change of book balance of loss provision with amount has major changes in the period
□Applicable □Not applicable
4) Bad debt reserve accrued collected or reversal
Bad debt reserve accrued in the period:
In RMB
Amount changed in the period
Opening
Category
balance Collected or
Ending balance
Accrued Written-off Other
reversal
Bad debt 1647256534. 1646395218.
274166.891135482.28
reserve 01 62
1647256534.1646395218.
Total 274166.89 1135482.28
0162
Including the important bad debt reserve reversal or collected in the period: Nil
5) Other receivables charged off during the reporting period
Nil
226WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
6) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Account Ending balance of
Name of enterprise Nature Ending balance balance of other
age bad debt reserve
receivables
Within 1
Balance of related
year
WFTR party in the 2758260000.00 90.03% 1644068327.93
consolidate scope
years
Within 1
Balance of related
year
IRD party in the 136847488.60 4.47%
consolidate scope
years
Within 1
Balance of related
year
WFCA party in the 109570000.00 3.58%
consolidate scope
years
Within 1
Balance of related
year
BORIT party in the 45544681.16 1.49%
consolidate scope
years
Balance of related
Within 1
WFAM party in the 6281901.73 0.21%
year
consolidate scope
Total 3056504071.49 99.78% 1644068327.93
7) Those booked into other account receivables due to centralized fund management
Nil
3. Long-term equity investments
In RMB
Ending balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt loss nt loss
Investment in
3846281133.433846281133.433116879242.193116879242.19
subsidiary
Investment in
associates and 5533108674.14 5533108674.14 4891133182.10 4891133182.10
joint venture
Total 9379389807.57 9379389807.57 8008012424.29 8008012424.29
(1) Investment in subsidiary
In RMB
Opening Changes in current period
balance Ending
Opening of Provision Ending balance of
Investee balance (book provision Negative Additional for Othe balance (book depreciati
Investme
value) for Investment impairme r value) on
nt
impairme nt loss reserves
nt loss
185704551.8185704551.8
WFJN
22
227WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
467856451.8191118200.658974651.8
WFLD
0000
170986195.3170986195.3
WFMA
55
222664737.0222664737.0
WFCA
11
WFTR 33726511.51 33726511.51
WFSC 51116685.47 51116685.47
238063380.0238063380.0
WFTT
00
WFAM 82454467.99 82454467.99
WFDT 54012820.23 54012820.23
1240910511.323278388.1564188899.
SPV
024446
WFLD(Chongqi
191160.00191160.00
ng)
WFAS 631890.00 631890.00
225000000.0225000000.0
WFQL
00
143559879.9143559879.9
VHWX
99
215005302.215005302.8
WFSS
800
3116879242.729401891.3846281133.
Total
192443
(2) Investment in associated enterprises and joint venture
In RMB
Opening Current changes (+/ -)
Openin Endin
balance Ending
g g
of Investme Cash balance of
balanc Other balanc
Investee provision Addition nt Other dividend depreciati
e Capital equit Impairme e
for al gain/loss comprehensi or profit Othe on
(book reductio y nt (book
impairme investme recognize ve income announc r reserves
value) n chang Accrued value)
nt loss nt d under adjustment ed to
e
equity issued
I. Joint venture
II. Associated enterprise
28923273
885900504543
RBCD 03898 3969
981.78000.42
1.7863.14
Zhonglian 1685 1871
452288266000
Electronic 50204 7908
s 770.52 000.00
6.7317.25
414144429
7364678727535775
WFPM 341.5 3972.
3.5915.598.49
827
18268-39942108
300000
AutoLink 0857. 417603 5647 6614
00.00
6154.74.029.89
Lezhuo 110000
Bowei 954.4 667361 6077 000.00
082.811.59
489140815533
140000123705775900
Subtotal 13318 8362 1086
000.007888.34758.91
2.10.6174.14
Total 4891 140000 123705 4081 775900 5533
228WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
13318000.007888.348362758.911086
2.10.6174.14
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable □Not applicable
(3) Other explanations
Nil
4. Operating income and cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 3175428485.74 2585384392.97 3398402921.46 2784710364.77
Other business 221947252.49 163133107.97 169604704.58 92512697.03
Total 3397375738.23 2748517500.94 3568007626.04 2877223061.80
5. Investment income
In RMB
Item Current period Last Period
Investment income from holding transaction
38210665.7789973294.02
financial asset
Investment income from disposing of trading
16818201.4913352570.85
financial assets
Dividends income of other equity instruments
18590.00
during holding period
Investment income in subsidiaries 139560230.16 76552430.32
Investment income in joint ventures and
1237057888.341372133258.69
associated enterprises
Income from derecognizing of financial assets
-312015.98
measured at amortization cost
Revenue from debt restructuring -133897.16 -12000.00
Total 1431219662.62 1551999553.88
6. Others
Nil
XX. Supplementary Information
1. Current non-recurring gains/losses
□Applicable □Not applicable
229WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset 10467340.59
Governmental grants reckoned into current gains/losses (except for those with normal
operation business concerned and conform to the national policies & regulations and are 48616030.83
continuously enjoyed at a fixed or quantitative basis according to certain standards)
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
-4002897.09
and trading financial liabilities and the investment earnings obtained from disposing the
trading financial asset trading financial liability and financial assets available for sale
Gains/losses of assets delegation on others’ investment or management 43914146.08
Reserve for impairment of receivables separately tested for impairment transfer back 4534967.21
Gains/losses of debt restructuring -599671.45
Other non-operating income and expenditure except for the aforementioned items 8230931.23
Other gains/losses that meet the definition of non-recurring gains/losses 707494.88
Accounts receivable charged off in previous years and recovered in current year
Less: Impact on income tax 30138725.92
Impact on minority shareholders’ equity (After tax) 1305351.90
Total 80424264.46
Specific information on other items of gains/losses that qualified the definition of non-recurring gains/losses
□Applicable □Not applicable
The Company does not have other gains/losses that qualified the definition of non-recurring gains/losses
Information on the definition of non-recurring gains/losses that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Gain)/Loss as the recurring gains/losses
□Applicable □Not applicable
2. ROE and earnings per share
Earnings per share
Weighted
Profits during report period Diluted earnings
average ROE Basic earnings per per share
share (RMB/Share)
(RMB/Share)
Net profits belong to common stock stockholders of the Company 8.47% 1.71 1.71
Net profits belong to common stock stockholders of the Company
8.06%1.621.62
after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
230WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2024
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute listed name of the institute
Nil
4. Other
BOD of Weifu High-Technology Group Co. Ltd.Chairman: _______________
18 April 2025
231
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