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